The Insider

By Maggie Ybarra
June 18, 2012 at 10:21 PM

Hawker Beechcraft has submitted a proposal for a contested contract that would deliver 20 aircraft to the Afghan military.

The company is offering its Beechcraft AT-6 aircraft for the Light Air Support contract and delivered a proposal for that contract to Wright-Patterson Air Force Base, OH, today, according to a company statement. Hawker Beechcraft was the losing competitor for the $355 million contract last year. The company sued the Air Force for information that would back up the service's decision to eliminate the company from the competition and, in response, the Air Force rescinded the contract, yanking it out of the coffers of Sierra Nevada Corp. and Brazil's Embraer, the contracting team which initially won the right to produce aircraft.

Last week, Sierra Nevada filed a lawsuit against the Air Force, seeking to have the contract reinstated.

Allegations have cropped up in recent months regarding the safety of the aircraft. Some of the safety issues include the ejection-seat requirements for the aircraft, which some sources claim to be sub-standard. Other safety issues hone in on the Air Force's decision to eliminate a flight-demonstration requirement that was in the initial request for proposals. The requirement was cut out of the request for proposals after the service revised the RFP.

Hawker, in its statement, assured the public that its aircraft met Air Force requirements.

"Our proposal clearly demonstrates that the AT-6 meets or exceeds all LAS requirements with an integrated solution of systems that combine an American-made production aircraft, worldwide logistics and USAF-standard training capabilities," the statement reads. "Both the U.S. Air Force and the Afghanistan Air Force will benefit from the AT-6's unmatched LAS capability. It is the best value solution for America's Building Partnership Capacity needs."

But those Air Force requirements are being questioned by several congressmen, including House Armed Services Committee Chairman Buck McKeon (R-CA), who is keeping an eye on the contract at the request of Reps. Rick Crawford (R-AR), Tim Griffin (R-AR), Mike Ross (D-AR), Steve Womack (R-AR), Tim Huelskamp (R-KS), Lynn Jenkins (R-KS), Mike Pompeo (R-KS) and Kevin Yoder (R-KS). The congressmen sent a letter to McKeon earlier this month voicing their concerns about the safety standards that the service drew up for the aircraft.

In a June 13 statement, the Air Force told Inside the Air Force that NATO Air Training Command was responsible for defining the aircraft requirements, not the service.

By John Liang
June 18, 2012 at 4:03 PM

The Pentagon recently issued an instruction memo outlining the responsibilities of the chief information officer, head of acquisition and component leaders for handling unclassified information:

1. DoD CHIEF INFORMATION OFFICER (DoD CIO). The DoD CIO, in addition to the responsibilities in section 3 of this enclosure, shall:

a. Oversee implementation of this Instruction in coordination with the Under Secretary of Defense for Intelligence (USD(I)) and the Under Secretary of Defense for Acquisition, Technology, and Logistics (USD(AT&L)), as appropriate.

b. Oversee integration of this guidance into Defense Industrial Base (DIB) cyber security and information assurance activities in accordance with DoDI 5205.13 (Reference (e)).

c. Standardize the implementation of information protection best practices in the DIB.

d. In coordination with the USD(I), ensure that the security of unclassified DoD information on non-DoD information systems that has been identified as controlled unclassified information (CUI) meets the requirements of Executive Order 13556 (Reference (f)) and its implementing directives, consistent with the DoD implementation plan to be provided in accordance with Reference (f) requirements.

2. USD(AT&L). The USD(AT&L), in addition to the responsibilities in section 3 of this enclosure, shall:

a. Engage with the DIB to identify and validate approaches to improve protection of unclassified DoD information developed, used, and shared by non-DoD entities in support of defense acquisition programs.

b. Identify, develop, and implement in the DoD acquisition contracting process policy and procedures for improved protection of unclassified DoD information transiting or residing on non-DoD information systems and networks to include:

(1) Ensuring that the Defense Federal Acquisition Regulation Supplement (DFARS) (Reference (g)) requires DoD contractors and their subcontractors to provide adequate security of DoD information in their possession.

(2) Addressing National Institute of Standards and Technology standards and guidelines, as appropriate.

3. HEADS OF THE OSD AND DoD COMPONENTS. The Heads of the OSD and DoD Components shall:

a. Ensure that unclassified DoD information provided to or developed by non-DoD entities in support of DoD activities is minimally protected according to the information safeguards described in Enclosure 3 of this Instruction by including requirements implementing this policy in contracts, grants, and other legal agreements in accordance with guidance issued pursuant to this Instruction.

b. Ensure that any additional protection measures or reporting requirements regarding compromise, loss, or unauthorized disclosure required by DoD Manual 5200.01,Volume 4, DoD 5400.11-R, DoDD 5205.02, DoDI 5200.39, DoD 8580.02-R (References (h), (i), (j), (k), and (l)), and other established DoD information safeguarding policies (e.g., those relating to law enforcement, technical data, or export control) are implemented by the insertion of applicable requirements into contracts, grants, and other legal agreements.

c. Ensure that contracts include appropriate DFARS clauses for safeguarding unclassified DoD information on non-DoD information systems when such clauses are published in Reference (g).

View the instruction.

By John Liang
June 15, 2012 at 6:05 PM

The Pentagon has issued a strategy document "that identifies information technology goals and objectives to capitalize on the full potential of mobile devices," according to a Defense Department statement.

DOD's "Mobile Device Strategy" document "focuses on improving three areas critical to mobility:  wireless infrastructure, mobile devices, and mobile applications, and works to ensure these areas remain reliable, secure and flexible enough to keep up with fast-changing technology," the statement reads.

View the strategy.

By Maggie Ybarra
June 15, 2012 at 5:03 PM

Norway today ordered a pair of F-35 fighter jets, initiating a staggered plan to purchase the aircraft for its Norwegian Armed Forces in small increments over the coming years.

The announcement was made by Norwegian Minister of Defence Espen Barth Eide, who noted that the purchase of the first two aircraft was a key milestone for Norway's F-35 program, according to a ministry statement. The country expects delivery of those jets by 2015 with the purchase of a second set of F-35s to follow, according to a ministry spokeswoman.

"We were supposed to have four test planes, as we call them, in 2016, but we decided we want two in 2015 and two in 2016 . . . so that we can be as prepared as possible," she said.

Norway will buy up to 48 aircraft after that, initiating additional aircraft purchases beginning in 2017, according to the statement.

The F-35 program to date has experienced numerous delays and cost increases. A recently released Government Accountability Office report shows that the Pentagon has deferred plans for near-term production of more than 400 aircraft over the past three years. GAO recommended that Defense Secretary Leon Panetta direct the office of cost assessment and program evaluation to examine the impact of lower annual resource levels in an effort to mitigate aircraft deferrals, risky funding assumptions and future budget constraints, InsideDefense.com reported yesterday.

Norway has been monitoring the progress of the program and has maintained an open dialogue with both Panetta and Lockheed Martin, prime contractor of the F-35, the spokeswoman said.

The F-35 procurement phase is estimated to cost Norway $10 billion.

Inside the Air Force reported last week that U.S. and Norwegian defense officials had formally awarded a study contract to Lockheed Martin to conduct risk-reduction activities on a munition for the F-35:

Norway is one of eight full international partners on the F-35 program, and the country's top defense contractor, Kongsberg, produces an anti-surface and anti-ship munition termed the Joint Strike Missile (JSM). Like many JSF program participants, Norway has insisted on some level of industrial participation, and working the missile into the F-35's future for use both by the Norwegian air force and other militaries has become a key goal for the country's MoD and defense industry.

On behalf of Norway's MoD, the Defense Department announced on May 31 that it has awarded F-35 prime contractor Lockheed Martin a nearly $20 million contract for the "Joint Strike Missile Risk Reduction Study." That study, paid for by the Norwegian government, will include wind tunnel tests, engineering analysis, physical fit checks and the design of an emulator to determine future activities in integrating the missile onto the F-35, according to the contract announcement

In a June 6 email provided to Inside the Air Force by JSF Joint Program Office spokesman Joe DellaVedova, a Norwegian defense official said this study will help inform more advanced integration efforts in later years.

"This will include testing the fit of the JSM into the F-35, further wind-tunnel testing, emulator tests, and so forth," the official said. "The study was actually initiated in 2011 following the approval by the Norwegian Parliament of phase 2 of the JSM development process. This then merely follows as an extension of this process and marks another milestone in the work to ensure that the necessary preparations for any future integration into the F-35 have been made."

By John Liang
June 15, 2012 at 3:57 PM

The Pentagon last month released the seventh edition of its "International Cooperation in Acquisition, Technology and Logistics Handbook." As the document's foreword states:

International Cooperation in Acquisition, Technology and Logistics (IC in AT&L) is a complicated business. Acquisition personnel considering IC in AT&L for their technology projects and acquisition programs must take into account a series of complex national and international interrelationships. While the business is complex, the rewards are great. IC in AT&L has the potential to significantly improve interoperability for coalition warfare, to leverage scarce program resources, and to obtain the most advanced, state-of-the-art technology from the global technology and industrial base. The International Cooperation in Acquisition, Technology and Logistics (IC in AT&L) Handbook satisfies the need for a straightforward, explanatory "road map" through this complex business.

This handbook is not in itself a policy document, but is based almost entirely upon laws, directives, instructions, manuals and other policy documents. It is an informed view of the current practices and procedures in this complex area. It was developed from inputs from many informed sources, primarily the Office of the Secretary of Defense: OUSD (Acquisition, Technology & Logistics)/International Cooperation and OUSD (Policy), Chief of Staff, Director, International Security Programs. A number of OUSD(AT&L) offices contributed: Defense Procurement & Acquisition Policy, Manufacturing & Industrial Base Policy, Research & Engineering, Logistics and Materiel Readiness and Nuclear & Chemical & Biological Programs. The Military Departments international program offices and the U.S. Mission NATO provided support for selected sections. Contract support with handbook integration, including checking and renewing links to the laws and policy documents referenced throughout, was provided by LMI – Government Consulting. This Handbook directs the reader to additional sources for assistance and information.

View the document.

By Jason Sherman
June 14, 2012 at 10:20 PM

Sen. Dick Durbin (D-IL) yesterday compared F-35 program cost growth with Solyndra, the bankrupt solar manufacturing firm that failed after receiving a $535 million government loan guarantee.

"I will tell you the cost overruns on the F-35 equal 12 Solyndras," Durbin said during a June 13 Senate Appropriations defense subcommittee hearing.

Durbin's math would put the F-35's cost growth at $6.4 billion, a sum the Pentagon would no doubt gladly accept in light of actual schedule delays and cost increases.

GAO today issued a report that pegs F-35 cost growth at $162.7 billion, roughly equal to 304 Solyndras.

By Christopher J. Castelli
June 14, 2012 at 1:02 PM

An Air Force CV-22 Osprey, assigned to the 1st Special Operations Wing, crashed at about 6:45 p.m. Wednesday evening during a routine training mission at Hulrburt Field’s Eglin Range, north of Navarre, FL, according to a statement released by the Air Force last night. The accident is under investigation. Five crew members aboard were taken to local area hospitals, according to the statement. Two crew members were taken by ambulance, while the other three were taken via air. An Air Force spokeswoman said the site of the crash is a pretty remote area. A Pentagon source told InsideDefense.com that the wreckage burned until midnight.

A fatal CV-22 mishap occurred in April 2010 when an Osprey crashed in Afghanistan. An investigation board could not pinpoint the crash's cause, but concluded that engine trouble, crew errors and weather were contributing factors. More recently, the Marine Corps has been investigating a fatal MV-22 Osprey crash that occurred in Morocco on April 11. The Marine Corps has ruled out mechanical failure as a cause of that crash. But the Associated Press reported Tuesday that concerns about the safety of the Osprey have prompted Japanese officials to put on hold plans to temporarily deploy the aircraft to the city of Iwakuni.

By John Liang
June 13, 2012 at 11:45 PM

InsideDefense.com reported yesterday that Sierra Nevada Corp., which was awarded an Air Force contract to build aircraft for the Afghan military and then had the contract revoked, had filed a lawsuit with the U.S. Court of Federal Claims seeking reinstatement of that contract. Further:

This is the second lawsuit filed against the Air Force over the contract. The first lawsuit was brought by Sierra Nevada's competitor, Hawker Beechcraft, after the Air Force eliminated it from the contract competition and then denied the company an explanation for that elimination. Hawker subsequently dropped the suit after the Air Force revoked Sierra Nevada's contract.

The $355 million contract that would supply 20 Light Air Support (LAS) aircraft to Afghanistan has also garnered the attention of the House Armed Services Committee chairman, who is now monitoring allegations that the contract lacks safeguards.

Taco Gilbert, one of Sierra Nevada's vice presidents, told Inside the Air Force today that his company filed the lawsuit only after it had exhausted every option to understand why the contract was withdrawn. Senior Air Force officials were notified of the impending litigation today and late yesterday, he said, adding that Sierra Nevada recently tried to legally obtain the preliminary details of the Air Force's investigation into the contract-awarding process but to no avail. The head of Air Force Materiel Command is overseeing that investigation.

"We were denied access to the commander-directed investigation," Gilbert said. "Had we seen it prior to this, we might not have had to go to this step."

The story also highlights a growing concern among lawmakers that the Air Force procurement process for this particular contract is marred by a lack of safeguards:

Eight congressmen from Arkansas and Kansas recently called on House Armed Services Committee Chairman Buck McKeon (R-CA) to keep an eye on the Air Force contract, which they claimed lacks safeguards and could produce aircraft with the potential to endanger the pilots that use it. Reps. Rick Crawford (R-AR), Tim Griffin (R-AR), Mike Ross (D-AR), Steve Womack (R-AR), Tim Huelskamp (R-KS), Lynn Jenkins (R-KS), Mike Pompeo (R-KS) and Kevin Yoder (R-KS), sent a signed letter to McKeon on June 7.

"We ask you for your assistance in obtaining an explanation from the Air Force of the entire requirements development history for the Afghanistan LAS acquisition and to include the development of any applicable [Memorandum of Requirements]," the letter states. "This information may help restore needed confidence in this significant procurement effort. We appreciate your consideration of our request and look forward to working with the Armed Services Committee to gain clarification from the Air Force."

We now have that letter. Click here to view it.

And here is more of our coverage on the LAS issue:

Hawker: Ejection Seat Standards An Issue In Light Air Support RFP (April 13)

Sierra Nevada Sees Delay In LAS Effort After Contract Cancellation (Feb. 28)

By Sebastian Sprenger
June 13, 2012 at 3:20 PM

Defense officials are preparing an omnibus reprogramming request for fiscal year 2012 to cover unexpected costs, Defense Secretary Leon Panetta told the Senate Appropriations defense subcommittee this morning. Among the bills that must be paid are almost $3 billion for fuel and extra funds for the U.S.-Israeli "Iron Dome" missile-defense program, the cost of which Panetta didn't specify.

Also driving up cost is the continuing closure of supply lines through Pakistan. Panetta, for the first time, put a price tag on having to use longer land transportation routes across Asia: $100 million per month.

Officials have been hesitant to disclose the financial fallout of the spat with Islamabad thus far, perhaps out of fear that disclosing a figure might weaken the U.S. negotiating position to reopen the Pakistani routes.

View Panetta's prepared testimony.

By Tony Bertuca
June 12, 2012 at 5:04 PM

A second Senate hold surfaced today on Heidi Shyu's nomination to become the Army's next acquisition executive, according to a published report.

A Bloomberg News story states that Sen. John Cornyn (R-TX) has placed a hold on Shyu in protest of the Defense Department's ongoing business arrangement with a Russian company to supply the Afghan army with Mi-17 helicopters.

InsideDefense.com first broke the news on Shyu's stalled nomination earlier this month when it was learned that Sen. Tom Coburn (R-OK) exercised a hold in protest of the Army's strategy to improve the M4 Carbine rifle.

By John Liang
June 12, 2012 at 3:47 PM

The National Geospatial-Intelligence Agency is getting a $123 million funding boost. The money was shifted over from the Military Intelligence Transfer Fund.

The details are classified, but the Pentagon released a reprogramming memo signed by Comptroller Robert Hale and dated June 8 announcing the funding switch.

In related news, Inside the Pentagon reported in April that the Defense Department had asked Congress for new authority to permit NGA to provide imagery intelligence and geospatial information support to regional organizations with defense or security components and security alliances of which the United States is a member. ITP further reported:

The initiative, one of several Defense Department legislative proposals submitted to Congress this month, would be an expansion of existing authority that lets the agency, called NGA for short, share mapping, charting and geodetic data support.

"Under current law, the NGA may only provide mapping, charting and geodetic data to security alliances and regional organizations such as the North Atlantic Treaty Organization (NATO) and the European Union (EU)," the proposal states. "As a result of the War on Terrorism, piracy and other recent national security issues, there are increasing requests for NGA to support these alliances and organizations and their forces with a broad range of geospatial intelligence (GEOINT)."

The proposal states the agency "has been able to find alternative legal basis for the requests to date but requires statutory changes to address the full range of anticipated requirements from these alliances and organizations." The agency can now provide foreign countries with imagery intelligence and geospatial information support. But increasingly the agency has been asked to provide "certain GEOINT support to military operations conducted by NATO in Afghanistan and security and peacekeeping operations conducted by the EU in the Balkans and Africa," DOD writes.

The agency has handled these requests by providing support to the individual countries involved or to a coalition of countries; by supporting the GEOINT needs of the State Department and other U.S. departments; by heeding a pact with NATO that permits the purchase of limited-distribution maps as foreign military sales; and by using other specific, limited and mostly temporary authorities.

By Christopher J. Castelli
June 11, 2012 at 6:31 PM

A Broad Area Maritime Surveillance Demonstrator (BAMS-D) unmanned aircraft being tested by the Navy crashed today at 12:11 p.m. near Bloodworth Island in Dorchester County, MD, the service said in a statement, which notes there were "no injuries to civilians and no property damage."

Navy officials are investigating the cause of the mishap, according to the statement.

The aircraft that crashed is one of five acquired from the Air Force Global Hawk program. The BAMS-D program has been developing tactics and doctrine for the employment of high-altitude unmanned patrol aircraft since November 2006, according to the statement.

By John Liang
June 11, 2012 at 5:13 PM

The White House will likely not be able to complete its export-control reform initiative by the end of the year, Inside U.S. Trade reported on Friday. According to Commerce Under Secretary for Industry and Security Eric Hirschhorn, the Obama administration still plans to make as much progress as possible in finalizing category revisions of the U.S. Munitions List (USML) and beginning to formally notify Congress of its intent to move items to the less stringent controls of the Commerce Control List (CCL). Inside U.S. Trade further reported:

"I don't think we can complete the whole thing in this calendar year, but I think we can get a lot more done in terms of Section 38(f) notices [required to move items off the USML], putting some regs into final form, and publishing them," Hirschhorn told the President's Export Council Subcommittee on Export Administration (PECSEA) on June 4. "Certainly if the president is re-elected, we're going to see it through."

His statement was the most definitive one so far that the administration will not meet its goal of completing the category revisions and congressional notifications by the end of the year (Inside U.S. Trade, Dec. 9, 2011 & March 2).

Assistant Secretary for Export Administration Kevin Wolf told the group that the earliest a congressional notification could take place under Section 38(f) of the Arms Export Control Act would be August or September of this year.

Once formally notified, Congress has 30 days to pass a resolution of disapproval through both chambers to stop a USML transfer. That timeline has been expanded considerably in the past through an informal process of consultations prior to submitting formal notifications.

But Hirschhorn and Wolf said at a PECSEA lunch meeting they did not see much more need for such an informal process in advance of a formal notification for the export control reform initiative transfers because of the extensive consultations the administration has already held with Congress over more than a year.

"We have done a great deal [of consultation]; it is getting to be time to get moving," Hirschhorn said. Asked if he sees the next step for the administration in the fall as a formal notification, Hirschhorn said "correct."

He said that the administration is trying very hard not to "jam anybody" in Congress, and has done dozens of meetings and briefings for Congress, and invited further consultations at any time. "But at some point, we are going to have to go forward," he said.

The details of the Section 38(f) process remain shrouded in controversy because the House is demanding more detailed information on the items to be transferred than the administration considers appropriate or possible to provide. The House approved these demands as part of the 2013 National Defense Authorization Act (NDAA), and Hirschhorn blasted that legislation as at a minimum substantially delaying the export control reform drive or potentially crippling it altogether.

The House-passed bill would require the administration to include in its Section 38(f) notice an "enumeration" of the items to be transferred "to the extent practicable." According to critics, the term "enumeration" can be read as requiring an item-by-item list for transfers, which the administration argues would be impossible to provide.

Hirschhorn said Commerce was working with Congress to find language for the final version of the bill that would be more acceptable to the administration. He noted that the administration has been "kicking around" a long list of words as alternatives to "enumeration" that it hopes might end up in the legislation and "could work a lot better."

By Christopher J. Castelli
June 11, 2012 at 3:27 PM

The United States is withdrawing from Pakistan the team of U.S. negotiators that has been working for weeks to reach an agreement that would prompt the Pakistani government to reopen ground supply routes bordering Afghanistan, Pentagon Press Secretary George Little told reporters today.

Little said reopening the routes remains under discussion and that U.S. officials hope to resolve the issue soon. The team, which had been in Pakistan for about six weeks, will hopefully be stateside for only a short period of time, he said. The Defense Department will continue to work on the matter through the U.S. embassy in Pakistan, he said.

By John Liang
June 8, 2012 at 4:15 PM

Naval Sea Systems Command announced this morning that it "intends to award FY13-14 STANDARD Missile-6 (SM-6) Block I and STANDARD Missile-2 (SM-2) Block IIIA/IIIB requirements on a sole source basis to Raytheon," according to a Federal Business Opportunities notice. The SM-6 is seen as the cornerstone to the land-based portion of the Obama administration's proposed phased adaptive approach to regional missile defense. The announcement further states:

The requirement consists of SM-6 Block I and SM-2 Block IIIA/IIIB missiles, spare components and sections, telemeters/installation kits, replenishment spares, and shipping containers, as well as SM-6 Block I instrumentation kits. Foreign Military Sale (FMS) items include SM-2 Block IIIA/IIIB missiles, shipping containers, and spare components and sections. The Government intends to procure the missiles as AURs, which include all major SM-6 Block I components (guidance section, power control and telemetry section, steering control section, rocket motor, fuze booster, fin set, target detecting device, and thrust vector assembly) and SM-2 Block IIIA/IIIB components (safe and arm device, warhead, rocket motor, fuze booster, and target detecting device) required for AUR missile configuration.

Additionally, this procurement will include level-of-effort (LOE) design agent engineering and technical services. Raytheon is the only company with the requisite expertise, knowledge, experience and facilities necessary to meet requirements for the STANDARD Missile program. Companies interested in subcontracting opportunities should contact Raytheon Company directly.

The proposed contract action is for supplies or services for which the Government intends to solicit and negotiate with only one source under authority of FAR 6.302. Interested persons may identify their interest and capability to respond to the requirement or submit proposals. This notice of intent is not a request for competitive proposals.

However, all proposals received within forty-five days (thirty days if award is issued under an existing basic ordering agreement) after date of publication of this synopsis will be considered by the government. A determination by the Government not to compete this proposed contract based upon responses to this notice is solely within the discretion of the government. Information received will normally be considered solely for the purpose of determining whether to conduct a competitive procurement.