The Insider

By Jordana Mishory
July 9, 2012 at 4:26 PM

The House is poised to debate the fiscal year 2013 defense-spending bill on the floor next week. The appropriations bill calls for $519.2 billion in base budget spending -- $3.1 billion more than the president's request. House appropriators also called for $88.5 billion in overseas contingency operations funds. The full House Appropriations Committee passed the bill in May; the House Rules Committee approved a rule for the bill on June 28, setting up next week's debate.

In late June, the Obama administration released a statement of administration policy stating that it “strongly opposes” the bill, and that senior presidential advisers would recommend President Obama veto it.

"The bill undermines key investments in high-priority programs, impeding the ability of the secretary of defense to carry out the defense strategic guidance issued earlier this year, and hindering the ability of the Armed Forces to carry out their missions consistent with the new strategy," the Office of Management and Budget said in its June 28 statement.

By Jason Sherman
July 6, 2012 at 6:44 PM

The Farnborough Air Show kicks off on Monday just outside London and the Defense Department will be represented. Senior DOD officials will make presentations and U.S. military aircraft will conduct aerial demonstrations at the week-long event, according to a Pentagon statement, which adds:

Various models of U.S. military aircraft and equipment and approximately 100 aircrew and support personnel from military bases in Europe and the U.S. are scheduled to attend. Platforms include: the Army LUH-72 Lakota helicopter and ScanEagle unmanned aerial vehicle; Navy F/A-18F Super Hornet and P-3C Orion; the Marine Corps MV-22B Osprey; and several Air Force aircraft including the F-16C Fighting Falcon, C-130J Super Hercules, C-17A Globemaster III, F-15E Strike Eagle, and B-52 Stratofortress.

Participation in the biennial airshow highlights the strength of the U.S. commitment to the security of Europe and demonstrates the contributions the U.S. defense industry offers with various state-of-the-art capabilities vital for the support and protection of our allies' and partners' national-security interests.

By Gabe Starosta
July 6, 2012 at 2:25 PM

Air Force Comptroller Jamie Morin has been appointed the service's new acting under secretary, according to an Air Force public affairs statement released this morning. Morin, who has served as the service's top financial manager since 2009, will -- at least temporarily -- fill the role vacated by former under secretary Erin Conaton, who was recently approved by the Senate to become the Defense Department's under secretary for personnel and readiness. If nominated to take over the position on a permanent basis, Morin would also require Senate confirmation.

President Barack Obama appointed him to the role on July 3.

Marilyn Thomas, Morin's deputy in the Air Force comptroller's office, will take over his financial management responsibilities, “except those duties that require action by a Senate-confirmed presidential appointee,” according to the Air Force release.

“I appreciate the opportunity to make a difference for the Air Force and our nation while also digging more deeply into critical issues like space programs, energy efficiency, DOD management reform and the Air Force budget,” Morin said in the statement.

By John Liang
July 3, 2012 at 3:47 PM

The Senate Armed Services Committee's fiscal year 2013 defense authorization bill would cost $634 billion, according to a Congressional Budget Office analysis released yesterday:

That total includes an estimated $89 billion for the cost of overseas contingency operations, primarily in Afghanistan. In addition, S. 3254 would prescribe personnel strengths for each active-duty and selected-reserve component of the U.S. armed forces. CBO estimates that appropriation of the authorized amounts would result in outlays of $622 billion over the 2013-2017 period.

The bill also contains provisions that would increase or decrease costs of discretionary defense programs in 2014 and future years. Those implicit authorizations would affect force structure, DoD compensation and benefits, DoD’s use of multiyear procurement authority, and other programs and activities. CBO has analyzed the costs of a select number of those authorizations and we estimate they would raise net costs by about $42 billion over the 2014-2017 period, assuming appropriation of the necessary amounts for those years. Those amounts are not included in the totals in the previous paragraph because funding for those activities would be covered by specific authorizations in future years.

S. 3254 contains provisions that would decrease direct spending by $31 million over the 2013-2017 period and $75 million over the 2013-2022 period. Because enacting the legislation would affect direct spending, pay-as-you-go procedures apply. Enacting the bill would not affect revenues.

By John Liang
July 2, 2012 at 3:57 PM

The National Nuclear Security Administration recently released a report containing updated numbers on the U.S. plutonium inventory.

According to an NNSA statement on the report:

* The plutonium inventory, maintained under nuclear material control and accountability, is 95.4 MT, a 4.1 MT decrease to the 1994 inventory. The most important factor for the reduction in inventory was the reclassification of process residues originally set aside for plutonium recovery as waste. Of the 4.1 MT reduction, 85 percent came from Rocky Flats residues sent to WIPP for disposition;

* The cumulative inventory difference for accountable plutonium is 2.4 MT, a 0.4 MT decrease to the 2.8 MT made public in the 1996 plutonium report. The 0.4 MT decrease in the cumulative inventory difference is attributed to materials recovered during de-inventorying and closure activities at Rocky Flats and the Hanford Site in Washington.

* Plutonium surplus to defense needs is now 43.4 MT, a 5.2 MT increase to the 1994 declaration; and

* The plutonium estimated in waste is 9.7 MT, a 5.8 MT increase to the 1994 inventory of 3.9 MT. The increase is attributed to: 4.4 MT in new discards from the accountable inventory; 0.8 MT increase in Rocky Flats solid waste generated prior to 1970; 0.4 MT increase in Hanford high level waste tank estimates; 0.1 MT in solid waste at a commercial low-level radioactive disposal facility not included in the 1996 report, and 0.1 MT from other sites.

By John Liang
June 29, 2012 at 11:01 PM

U.S. and Romanian defense officials have signed "implementing arrangements" related to the planned construction and operation of the Aegis Ashore missile defense facility, according to a U.S. European Command statement issued today.

Romanian State Secretary for Defense Policy and Planning Sebastian Hulaban and Air Force Maj. Gen. Mark Schissler, director of plans and policy at EUCOM, "signed two implementing arrangements and three amendments to existing implementing arrangements related to the construction and operation of the planned missile defense facility in Deveselu," the command statement reads. It further states:

One implementing arrangement is for the use of land areas surrounding Deveselu Base, which is located near Caracal, Romania. The other implementing arrangement is for the use of airspace over Deveselu Base.

The two governments also signed three amendments to existing implementing arrangements regarding security, real estate and the functioning of the joint committee.  Each of these implementing arrangements supports Phase II of the European Phased Adaptive Approach.

The Ballistic Missile Defense Agreement between U.S. and Romania was signed Sept 13, 2011 and entered into force on Dec. 23, 2011.

The signing of these implementing arrangements is another step forward toward making the missile defense facility in Deveselu a reality.

Rear Admiral Randall M. Hendrickson, the Deputy Director of the Missile Defense Agency, and Brigadier General Thomas J. Sharpy, Director of Plans, Programs and Analyses, U.S. Air Forces in Europe, also attended the signing.

By Christopher J. Castelli
June 29, 2012 at 8:58 PM

Defense Secretary Leon Panetta said today that he had not yet seen a recently completed Joint Staff report on lessons from the last decade of war. Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey, appearing with Panetta at the Pentagon, told reporters that officials are just beginning to review the lengthy report, which draws lessons from many other reviews conducted in recent years.

In the last 10 years, the Pentagon failed to understand the operational environment, learned the hard way that conventional military methods were ineffective and initially ignored the need to influence perceptions in order to achieve objective, according to a draft of the study first reported by Inside the Pentagon.

The assessment says the Pentagon must craft a strategy for intelligence gathering and pursue major improvements in interagency coordination to avoid repeating mistakes made since 9/11.

By John Liang
June 29, 2012 at 4:13 PM

House Armed Services Committee Republicans sent a letter to Senate Majority Leader Harry Reid (D-NV) today calling on him to immediately bring a plan to the Senate floor to resolve sequestration.

According to the letter:

The time for rhetoric has passed. Resolution cannot wait until next month, or a lame duck session, or even the next Congress. News reports indicate that you are waiting for a "better" proposal. If you have a solution in mind, it is incumbent upon you to bring it to the floor of your own chamber, pass it, and allow us to move into a conference. Further cuts to the military don't affect some faceless bureaucracy. The White House has determined that sequestration will arbitrarily gut the funding to our troops who are putting their lives on the line for our country every day. Unless you allow a plan to resolve sequestration to come to the Senate floor, you will not only force the automatic cuts to your domestic agenda, but you will bear responsibility for a morally unconscionable outcome that breaks faith with our service members and their families. We must resolve sequestration now.

By Christopher J. Castelli
June 29, 2012 at 1:01 PM

The Defense Department, in coordination with Japan’s government, is proceeding with the introduction of MV-22 Ospreys to III Marine Expeditionary Force in Japan, DOD announced in a statement released shortly after midnight. DOD today formally notified Japanese officials in Tokyo that it will replace CH-46 helicopters in Japan with MV-22s. The Ospreys will arrive at Marine Corps Air Station Iwakuni for unloading in late July, but they will not conduct flight operations for the time being, according to the statement.

DOD maintains that the investigations into a fatal April 11 MV-22 crash in Morocco and a separate June 13 crash of an Air Force CV-22 have so far revealed nothing that should impede the deployment of the aircraft to Japan. DOD officials held a June 22 meeting at the Pentagon with officials from the Japanese defense and foreign-affairs ministries to provide an update on preliminary conclusions related to the recent V-22 crashes.

“In recognition of the remaining concerns of the Japanese government about the safety of the aircraft, the DOD will refrain from any flight operations of the MV-22 in Japan until the results of the investigations are presented to the Japanese government and the safety of flight operations is confirmed,” the department said in the statement, adding that DOD anticipates presenting this information to the Japanese government in August.

“During this period, Japan will be the only location worldwide where the United States will suspend MV-22 flight operations,” reads the statement. MV-22s and CV-22s will continue flight operations elsewhere in the world, including over the continental United States. The Pentagon maintains the Osprey has an excellent safety record.

“Basing the Osprey in Okinawa will significantly strengthen the United States' ability to provide for the defense of Japan, perform humanitarian assistance and disaster relief operations and fulfill other alliance roles," the statement adds.

By Christopher J. Castelli
June 28, 2012 at 8:18 PM

The White House strongly opposes House passage of H.R. 5856, the House's fiscal year 2013 defense appropriations bill, according to a statement of administration policy issued today.

"If the president were presented with H.R. 5856, his senior advisers would recommend that he veto the bill," according to the statement. By adding unrequested funding for defense, lawmakers have crafted a bill that would require "significant and harmful cuts to critical national priorities such as education, research and development, job training and health care," the statement notes.

The legislation also "undermines key investments in high-priority programs," impeding the ability of the defense secretary to carry out the Defense Strategic Guidance issued earlier this year, and hindering the ability of the U.S. military to carry out missions consistent with the new strategy, the White House writes.

Additionally, the statement complains about proposed limitations on the retirement of aircraft, as well as cuts to the Medium Extended Air Defense System, the MQ-8 Fire Scout drone and the Defense Acquisition Workforce Development Fund, among other priorities.

By Jen Judson
June 28, 2012 at 6:29 PM

The president has picked Army Maj. Gen. James Barclay to become the service's new programming chief, according to a Defense Department statement issued today. Barclay is in line for a third star if his nomination is approved by the Senate.

The Army G-8 deputy chief of staff position has been vacant since Lt. Gen. Robert Lennox left the job earlier this year, when he took over as chief of the Pentagon's cost assessment and program evaluation office.

Barclay is the assistant deputy chief of staff of the Army's G-3/5/7 branch.

By John Liang
June 28, 2012 at 4:34 PM

The agency responsible for managing the U.S. nuclear weapons complex still has lots of room for improvement, according to the Government Accountability Office.

In prepared testimony for a House Armed Services strategic forces subcommittee hearing held yesterday, GAO had this to say about the National Nuclear Security Administration:

NNSA has made considerable progress resolving some of its long-standing management deficiencies, but significant improvement is still needed especially in NNSA's management of its major projects and contracts. GAO reported in June 2004 that NNSA has better delineated lines of authority and has improved communication between its headquarters and site offices. In addition, NNSA's establishment of an effective headquarters security organization has made significant progress resolving many of the security weaknesses GAO has identified. Nevertheless, NNSA continues to experience major cost and schedule overruns on its projects, such as research and production facilities and nuclear weapons refurbishments, principally because of ineffective oversight and poor contractor management. In some areas, NNSA can be viewed as a success. Importantly, NNSA has continued to ensure that the nuclear weapons stockpile remains safe and reliable in the absence of underground nuclear testing. At the same time, NNSA's struggles in defining itself as a separately organized agency within DOE, and the considerable management problems that remain have led to calls in Congress and other organizations to increase NNSA's independence from DOE. However, senior DOE and NNSA officials have committed to continuing reform, and DOE’s and NNSA's efforts have led to some management improvements. As a result, GAO continues to believe, as it concluded in its January 2007 report, that drastic organizational change to increase independence is unnecessary and questions whether such change would solve the agency's remaining management problems.

By Christopher J. Castelli
June 27, 2012 at 8:35 PM

House Armed Services Committee Chairman Buck McKeon (R-CA) has issued a formal request for acting Office of Management and Budget chief Jeffrey Zeints to testify on July 18 about the mechanics and impact of automatic defense cuts known as “sequestration.”

In a letter issued today, McKeon writes that the House has acted to resolve sequestration through the reconciliation process. “Given the apparent impasse, it is appropriate to provide information to members of Congress, industry, and the public about the administration's interpretation of the law and how sequestration would be implemented mechanically," he writes. "At a minimum, this information is critical for planning, and perhaps the additional insight into the realities of sequestration will incentivize all parties to offer alternative deficit reduction plans. I was pleased to note the statement by your spokesperson earlier this week that indicated your staff was conducting the analysis necessary to implant sequester if need be."

The committee has also invited representatives from the defense industry as well as senior defense officials to participate in the hearing.

By Gabe Starosta
June 27, 2012 at 3:46 PM

Seven months after Rolls-Royce and General Electric stopped self-funding the Joint Strike Fighter's second engine -- and more than a year after the Defense Department issued the contractors a stop-work order on the F136 engine -- termination proceedings are still not complete, Rolls-Royce officials said today.

The GE-Rolls-Royce team developing the F136 engine formally ended its work at the end of calendar year 2011. At that point, it was unclear where F136-related property, such as spare and test engines, would end up. At a media briefing today, Tom Hartmann, Rolls-Royce's senior vice president of U.S. government programs, said the status of those items remains undecided.

“We are currently in the termination process for the F136 with the U.S. government, and so it is premature to say how that worked out until that process is complete,” Hartmann said. “There's a legal time frame -- I think we have up to a year -- to complete that work.”

The parts developed under the F136 program are property of the Defense Department, so the two companies are awaiting direction on the final disposition of those items, Hartmann said. Rolls spokesman George McLaren added that the parts have remained where they were at the time the F136 team received its termination notice -- namely, at a Rolls-Royce facility in Indianapolis, a General Electric facility in Evendale, OH, in the possession of some suppliers, and possibly at some government sites.

DOD issued the GE-Rolls team a stop-work order on the F136 on March 24, 2011. The companies then self-funded development on the motor until early December, at which point they announced plans to wind down the program at the end of the year.

By John Liang
June 27, 2012 at 12:01 PM

A U.S. Transportation Command "cross-directorate team" is scheduled to complete work on a new command strategy by the end of July. According to excerpts from a June 20 command statement:

Representatives from across the command as well as peers from components and subordinate commands have worked to establish a framework for the plan.

The group began by assessing the current and future strategic environment and then analyzed the command's Department of Defense-assigned missions and critical tasks. The team distilled the command's core responsibilities into three strategic priorities:

* Transportation services and enabling capabilities

* transportation-related information

* transportation billing and financial transactions

"This strategic plan will address what we've been hearing from our internal staff and partners from a variety of avenues," said Air Force Gen. William M. Fraser, III, commander, USTRANSCOM. "We are working to show folks that there is a rationale behind what we do, and I will be taking the opportunity in the future to talk with people about how we're knitting together our strategic plan, stakeholder input, and command initiatives."

Air Force Brig. Gen. John Michel, deputy director, strategy, policy, programs and logistics, is leading the cross-stakeholder strategic planning effort on behalf of Gen. Fraser. Brig. Gen. Michel plans to visit partners in the coming weeks to provide a progress report. In addition, he will hold town hall meetings at the end of the month to share information with staff and gather input.

"We are including as many people in this process as possible," said Michel. "We want to be transparent about why the command is moving in a particular direction. The next part of this process involves better aligning ourselves to meet our nation's needs in the coming years and we want to help everyone to be supportive of these efforts." . . .

Next steps will be to define strategic objectives that support and advance the three command priorities and make the related resourcing recommendations. The team will deliver this framework to Fraser on July 31. Implementation of the approved plan will take place this fall.