The INSIDER daily digest -- Oct. 28, 2022

This Friday INSIDER Daily Digest has news on countering inflation in defense contracts plus the latest quarterly earnings reports and more.

Don't expect the Pentagon to willingly pay extra in its contracts to counteract inflation:

LaPlante: DOD does not intend to enact policy to boost contracts impacted by inflation

The Defense Department "does not intend to enact a policy to increase contract prices due to inflation," according to a new letter sent by Pentagon acquisition chief Bill LaPlante to Sen. Elizabeth Warren (D-MA) and obtained by Inside Defense.

Document: LaPlante letter to Warren on inflation

We also have more defense contractor earnings news:

L3Harris reduces 2022 guidance after falling short on Q3 expectations

L3Harris Technologies reduced its 2022 outlook after failing to reach expectations in its third-quarter results, the company announced in its earnings report released Thursday evening.

Amidst FLRAA delays, Textron CEO projects confidence

Despite what has been a months-long delay for the Army in announcing the winning bidder for its Future Long-Range Assault Aircraft, the CEO of the parent company of one of the two finalists says that company can "live within its guidance."

(Keep an eye out for all the defense contractor earnings news in next week's Defense Business Briefing.)

The Army next year is expected to release a request for proposals for a converted corporate jet that would join the growing array of sensors and processors that the service says will enable multidomain operations:

To deliver long-range sensing, industry says it can make corporate jets survivable

Defense companies seeking to modify corporate jets to provide intelligence, surveillance and reconnaissance to the Army say they are confident they can make the planes survivable enough to be operationally relevant, even as the Air Force has moved away from a similar capability in recent years.

The recent discovery of a Chinese component in the F-35 Joint Strike Fighter has prompted and elevated a broader discussion over what officials call "supply chain illumination" and the need to deploy detection and mitigation strategies moving forward:

Work to pinpoint root cause behind Chinese alloy in F-35 magnet continues

While leaders across the U.S. military and defense industry are pushing to bolster visibility over in their supply chains, Pentagon officials are continuing work to determine how a Chinese-sourced alloy found its way into the F-35 Joint Strike Fighter's turbomachine.