The Insider

By Shelley K. Mesch
August 15, 2024 at 10:35 AM

Lockheed Martin will buy satellite manufacturer Terran Orbital for $450 million as a way to expand its space business, the company announced today.

Lockheed has worked with Terran Orbital on several programs, including the Transport and Tracking Layers for the Space Development Agency, and it is also Terran’s largest customer to date.

"We've worked with Terran Orbital for more than seven years on a variety of successful missions," said Robert Lightfoot, president of Lockheed Martin Space. "Their capabilities, talent and business momentum align with Lockheed Martin Space's strategic plans -- and we're looking forward to welcoming them to our team. Our customers require advanced technology and even faster product development, and that's what we can achieve together."

Terran Orbital has been struggling with dwindling cash reserves and mounting debt, despite the company debuting on the public market with a $1.8 billion valuation just two years ago.

Now, pending regulatory and Terran stockholder approvals, Lockheed will buy the company for 25 cents in cash for each outstanding common stock share and retire its existing debt.

Terran will remain a commercial merchant supplier upon closing, which Lockheed stated it expects in the fourth quarter this year.

"This transaction combines our strengths and expertise," said Marc Bell, chairman, CEO and co-founder of Terran Orbital. "This move will open new opportunities for growth and innovation, and we couldn't be more excited about the future. Access to Lockheed Martin's incredible engineers and world class facilities will only accelerate our business plan to provide low-cost, high-value solutions to our ever-growing customer base."

The deal comes just months after Lockheed previously bid $600 million to buy Terran in April, according to CNBC.

By John Liang
August 14, 2024 at 4:02 PM

Former Chief of Naval Operations Adm. John Richardson has joined ThayerMahan's advisory board, the company announced today.

Richardson, who retired from the Navy in 2019, also served as director of the Naval Nuclear Propulsion Program as well as deputy administrator of the National Nuclear Security Administration.

Since leaving the Navy, Richardson joined the board of directors for Boeing, Constellation Energy and BWX Technologies. He also serves on the boards of the Center for New American Security, the Scripps Institution of Oceanography and the Navy League of the United States.

By Dan Schere
August 14, 2024 at 3:17 PM

The Army will host an industry week on contested logistics next month at Ft. Gregg-Adams, VA, which will be followed by an announcement for a follow-on solicitation, according to a government notice posted this week.

The industry week will feature five panel sessions between industry and government subject matter experts. It will focus on five subject areas, which are:

  • Renewable & distributed energy generation and storage
  • Advanced manufacturing
  • Demand reduction -- water at the point of need
  • Autonomous distribution -- human machine integration
  • Enhanced explosive ordnance disposal training capability

The meeting, which will take place Sept. 19-20, will be unclassified with the goal of having “fair, even and transparent communications with industry, academia and other non-governmental organizations to inform industry on Army sustainment and logistics-related needs and to determine industry capabilities to meet said needs.”

Last year, the Army stood up a Contested Logistics Cross-Functional Team based out of Redstone Arsenal in Huntsville, AL. The CFT was created to fill gaps in areas such as sustainment, autonomy, data-based logistics and fuel efficiency.

At the end of the industry event next month, Combined Arms Support Command intends to “set conditions” when it comes to delivering logistics and sustainment capabilities for the Army of 2030 and 2040, according to the notice.

The notice states that following the industry week, there will be a “follow-on announcement for solicitation” that centers around the five discussion topics of the event.

By John Liang
August 14, 2024 at 2:49 PM

This Wednesday INSIDER Daily Digest has news on Defense Department legislative liaisons, the Maritime Administration's National Marketing Campaign, solid-rocket motors and more.

Senate appropriators, in a report accompanying their version of the fiscal year 2025 defense spending bill, are retaining a provision from previous years prohibiting the use of funds to "plan or implement the consolidation of a budget or appropriations liaison office" anywhere within DOD:

Senate appropriators nix DOD moves to consolidate congressional liaisons

The Senate Appropriations Committee says it is concerned the Defense Department might move to consolidate or "supplant" the budgetary liaisons who traditionally assist lawmakers in crafting annual spending legislation.

The Maritime Administration's National Marketing Campaign is meant to inform the public about the urgent need for skilled workers in the maritime industry:

MARAD seeks PR help to boost National Marketing Campaign

The Maritime Administration is seeking public relations help to boost its National Marketing Campaign -- an initiative meant to bring more workers into the merchant marine and shipbuilding industries.

Some solid-rocket motor news:

Lockheed, GD to join forces to build solid-rocket motors, boost output

Lockheed Martin and General Dynamics will come together to develop and produce solid-rocket motors in a bid to improve the nation's crippling domestic supply chain for the energetics systems that power most of the Pentagon's munitions, according to an announcement issued this week.

News on the Air Force's T-7 trainer aircraft:

Air Force taking 'incremental' approach to T-7 milestone C decision

The Air Force is planning to approve low-rate initial production for its T-7 Red Hawk trainers on an incremental basis as it deals with long-term developmental delays, according to Kevin Stamey, the Air Force's program executive officer for mobility and training aircraft.

We also have the latest on the Defense Department's Replicator drone effort:

DIU, Navy award contracts for small sea drones for Replicator

The Pentagon's innovation hub and the Navy have awarded contracts to prototype small sea drones, in line with the department's Replicator program timeline to field thousands of attritable, unmanned systems by August 2025 to counter China's military mass, the Defense Innovation Unit announced Monday.

By Nickolai Sukharev
August 14, 2024 at 1:24 PM

Oshkosh will continue to build medium tactical trucks for the Army after receiving a $46 million contract, the Defense Department announced Tuesday.

Issued as a modification to an earlier contract, the Wisconsin-based company will build the Family of Medium Tactical Vehicles by an estimated completion date of Nov. 30, 2026, with funding and work locations being determined with each order, the Aug. 13 announcement reads.

Performing 55% of the Army’s haul and resupply missions, the FMTV includes cargo, recovery and tractor variants on a six-wheel-drive or four-wheel-drive chassis, according to Army budget documents.

The Defense Department announced a $108.9 million contract to the company in May with a Sept. 30, 2026 completion date.

In January, the Army announced an order of 1,343 FMTV A2s, an upgraded variant with a more powerful engine, and increased armor that can carry heavier payloads when compared to the earlier A1 variant.

Earlier variants of the FMTV can carry the High Mobility Artillery Rocket System, which the Army is also testing on the A2 variant, according to service research and development documents.

In its 2023 report, the Director for Operational Test and Evaluation concluded the FMTV is effective and survivable but recommended the Army eliminate secondary hazards after finding that crew members experienced strain, discomfort and blunt-force injuries.

The Army intends to procure 208 trucks in fiscal year 2025 for $134 million and 695 trucks by FY-29 for an approximate $446 million, the budget documents add.

In July, the Senate Armed Services Committee included $134 million for the FMTV program in the FY-25 defense authorization bill.

Oshkosh also produces the Army’s Family of Heavy Tactical Vehicles, which includes the Heavy Expanded Mobility Tactical Truck and Palletized Load System as well as the M1070 tank transporter.

The company expects contract extensions for the vehicles following the loss of the Joint Light Tactical Vehicle production contract, company executives said during a quarterly earnings call late last month.

By Tony Bertuca
August 13, 2024 at 3:47 PM

(Editor's note: This story has been corrected to reflect the fact that the State Department has approved the possible sales, not Congress.)

The State Department has approved a nearly $19 billion proposed foreign military sale of up to 50 F-15IA and F-15I+ aircraft to Israel, along with a host of other weapon systems, according to a recent Defense Security Cooperation Agency announcement.

“Incorporating F-15IAs into the Israel Air Force’s fleet of fighter aircraft will enhance Israel’s interoperability with U.S. systems and bolster Israel’s aerial capabilities to meet current and future enemy threats, strengthen its homeland defense, and serve as a deterrent to regional threats,” DSCA said.

Boeing would be the prime contractor. The proposed sale must still be approved by Congress.

Other potential deals that Congress approved involving Israel today include an FMS for 32,739 120mm tank cartridges and related equipment for an estimated cost of $774 million, and another FMS for M1148A1P2 Family of Medium Tactical Vehicles costing about $583 million.

Additionally, DSCA announced a potential $102.5 million FMS to Israel for up to 30 Advanced Medium Range Air-to-Air Missiles and a $61 million FMS for up to 50,000 M933A1 120mm high explosive mortar cartridges.

Meanwhile, Pentagon officials say they continue to monitor the Middle East for signs of a possible attack on Israel or U.S. forces by Iran or its proxies following the recent assassinations of top Hamas and Hezbollah leaders.

By John Liang
August 13, 2024 at 1:47 PM

This Tuesday INSIDER Daily Digest has news on the Pentagon's Replicator drone effort, a Defense Science Board report on position, navigation and timing control and more.

Here's the latest on the Defense Department's Replicator drone effort:

DIU, Navy award contracts for small sea drones for Replicator

The Pentagon's innovation hub and the Navy have awarded contracts to prototype small sea drones, in line with the department's Replicator program timeline to field thousands of attritable, unmanned systems by August 2025 to counter China's military mass, the Defense Innovation Unit announced Monday.

More unmanned systems news, specifically on MQ-4C Triton cost increases:

Drastic cost increase of MQ-4C reflects widespread problem, with unique causes

The MQ-4C Triton uncrewed aircraft system recently experienced significant unit cost increases, mirroring what some other Defense Department programs go through every year.

The recently released executive summary of a June 27 Defense Science Board report on Position, Navigation and Timing Control "examined a variety of alternative navigation systems, space-based and otherwise, and considered warfighter needs and future opportunities for meeting them":

DSB recommends military use of commercial PNT systems

A Defense Science Board task force is recommending the Pentagon try to leverage commercial markets to rapidly scale and lower the cost of position, navigation and timing systems for military use, according to an executive summary of the advisory panel’s latest report.

Document: Executive summary of DSB report on PNT control

Office of Strategic Capital Director Jason Rathje spoke at the National Defense Industrial Association’s emerging technology conference last week:

Strategic capital chief expects loan funds available by year's end, awards in early 2025

The Defense Department office aimed at catalyzing private investment in technology areas deemed critical to national security expects to announce its first available funds by the end of this year, with its eye on awarding the money in early 2025, according to its director.

Our colleagues at Inside Cybersecurity have the latest on the Pentagon's Cybersecurity Maturity Model Certification program:

Second proposed rule for Pentagon's CMMC program clears OMB regulatory review process

The second rulemaking to implement version 2.0 of the Pentagon's Cybersecurity Maturity Model Certification program has cleared the interagency regulatory review process at the Office of Management and Budget, setting up the potential for the closely watched initiative to be put into place by the end of the year.

By John Liang
August 13, 2024 at 10:49 AM

Mercury Systems today announced the appointment of Brad Whittington as the company's senior vice president of engineering.

Reporting to Chief Operating Officer Roger Wells, Whittington will be responsible for "the strategic planning, leadership and execution of Mercury’s recently integrated Engineering organization," a company statement reads.

Whittington most recently served as Leidos' vice president of engineering and chief engineer for that company's Defense Systems Sector. He has also worked at RTX, Lockheed Martin and NASA.

By John Liang
August 12, 2024 at 2:09 PM

This Monday INSIDER Daily Digest has news on MQ-4C Triton cost increases, the Air Force's multibillion-dollar, next-generation AWACS aircraft and more.

Prompted by the Navy, the Joint Requirements Oversight Council -- the organization charged with assessing and evaluating joint military requirements -- decided in 2022 to reduce MQ-4C procurement numbers from 70 to 27 aircraft, due to increasing costs:

Drastic cost increase of MQ-4C reflects widespread problem, with unique causes

The MQ-4C Triton uncrewed aircraft system recently experienced significant unit cost increases, mirroring what some other Defense Department programs go through every year.

In other unmanned systems news, Under Secretary of Defense for Research and Engineering Heidi Shyu, who spoke at the National Defense Industrial Association's recent emerging technology conference, pointed to the increasingly widespread availability of commercial UAS products:

Shyu says counter-drone warfare 'never going to die'; Anduril touts new production facility

The global proliferation of unmanned aerial systems and the technologies to counter them has the Pentagon's technology chief predicting continued "explosive growth."

Boeing and the Air Force have put the finishing touches on a multibillion-dollar contract for the next-generation AWACS aircraft:

Air Force, Boeing finalize E-7A Wedgetail contract for $2.6 billion

The Air Force and Boeing finalized the E-7A Wedgetail contract, inking the deal for $2.56 billion for the rapid prototype program, according to a service announcement.

Missile Defense Agency Director Lt. Gen. Heath Collins said a prototype integrated air and missile defense architecture developed by his agency called the Joint Track Management Capability (JTMC) Bridge will be the starting point for tying together different air and missile systems originally developed by the military services as stand-alone capabilities:

'Bridge' to link Army-Navy sensor tracks on Guam not ready to handle 'advanced' threats

The U.S. military is planning to roll out a Defense of Guam capability that effectively identifies from Army and Navy radar a single track for air-breathing threats but not yet adversary ballistic and hypersonic missiles, even as top brass assess that incoming raids in a conflict with China could be in the "hundreds" or "thousands."

The services have received several systems under the Rapid Defense Experimentation Reserve program:

DOD highlights successful prototype transitions to defend RDER funding

The Pentagon has released project details for several systems that have successfully transitioned to the military services via the Rapid Defense Experimentation Reserve program, which senior officials have been defending amid recent congressional criticism.

By Vanessa Montalbano
August 12, 2024 at 1:55 PM

The Air Force's weapon systems and subsystems will now go through HII-run depots for some repair or maintenance work, according to an announcement the company issued today.

The shipbuilding giant’s mission technologies unit has been awarded a $209 million contract by the Air Force to “perform research and analysis that will support the USAF’s weapons systems development, sustainment and long-term strategy,” HII said in the notice.

The company will mainly support the service’s fighters and advanced aircraft and bomber directorates on maintenance work in an effort to swiftly increase aircraft readiness or mission-capable availability, at a time when the service expects up to 514 aircraft to be grounded at any point due to lack of spare parts.

“HII is excited to build upon our Air Force Life Cycle Management Center work, helping to optimize the customer’s approach to developing, fielding and maintaining fighter and bomber platforms and subsystems to maximize their readiness and lethality,” Grant Hagen, HII’s president of mission technologies’ cyber, electronic warfare and space business unit, said in a statement.

Work supported by the new five-year task order will be performed out of Wright-Patterson Air Force Base, OH, where AFLCMC is housed, as well as at Robins AFB, GA, Hill AFB, UT and Tinker AFB, OK -- the locations of the service’s three sprawling Air Logistics Complexes.

The Air Force in September will release a three-phased plan to overhaul its aging depots to be better equipped to meet the demands of a potential fight with a near-peer adversary, formally dubbed "The Air Force Depot Infrastructure Optimization Plan," Inside Defense previously reported.

By Abby Shepherd
August 12, 2024 at 1:51 PM

The Office of Naval Research is seeking information on technology that will assist in subsea and seabed warfare and plans to use this knowledge for technology operational experimentation event (TOEE) 25.2 -- part of a series of experiments that take place in operationally relevant conditions.

Three focus areas for TOEE 25.2 include autonomous undersea navigation and collaborative autonomy, sensors and automated target recognition and command and control tools as well as decision aids for planning and mission coordination, according to a request for information posted today.

“TOEEs is a series of events designed to provide decision-quality information to Naval Research & Development Establishment (ND&RE) leadership informing future Science and Technology (S&T) investments (further development, transition, or divestiture) through live force experimentation executed in operationally relevant scenarios and environments,” today’s notice reads. “Past events have focused on Expeditionary Sustainment, Maritime Reconnaissance and Counter-Reconnaissance, and Small Boat Payloads in support of Littoral Maneuver.”

The Navy is interested in technologies with a technology readiness level of five or greater and that can conduct live experimentation in fiscal year 2025.

After an initial demonstration, successful technologies will be allowed to join in a limited objective experiment, currently scheduled for January to February 2025. If the technology is successful here, it may participate in an advanced capability experiment, which will tentatively take place in September 2025, according to today’s notice.

An industry day will also occur from 11 a.m. to 12:30 p.m. CST on Aug. 28 virtually on Microsoft Teams. Responses to today’s RFI are due by Sept. 27.

By Tony Bertuca
August 12, 2024 at 5:00 AM

Senior defense officials are scheduled to speak at several events this week.

Wednesday

The Intelligence and National Security Alliance hosts a discussion with the director of the Defense Counterintelligence and Security Agency.

U.S. Strategic Command hosts a deterrence symposium in Omaha, NE.

Thursday

The National Defense Industrial Association hosts the 2024 Space Warfighting Forum in Colorado Springs, CO.

By Tony Bertuca
August 9, 2024 at 3:35 PM

The Defense Department has announced a $125 million transfer of U.S. weapons to Ukraine, including air defense capabilities, multimission radars and anti-tank weapons.

The aid package being provided via Presidential Drawdown Authority contains:

  • Stinger missiles;
  • Ammunition for High Mobility Artillery Rocket Systems (HIMARS);
  • 155mm and 105mm artillery ammunition;
  • Multimission radars;
  • Tube-launched, Optically tracked, Wire-guided (TOW) missiles;
  • Javelin and AT-4 anti-armor systems;
  • Humvee ambulances;
  • Small arms ammunition;
  • Demolitions equipment and munitions;
  • Equipment to protect critical national infrastructure; and
  • Spare parts, ancillary equipment, services, training and transportation.

“This announcement is the Biden administration's sixty-third tranche of equipment to be provided from DOD inventories for Ukraine since August 2021,” DOD said.

The aid announcement comes as Ukraine has launched a surprising cross-border attack on Russia's Kursk region.

By John Liang
August 9, 2024 at 2:13 PM

This Friday INSIDER Daily Digest has news on the Rapid Defense Experimentation Reserve effort, Army unmanned systems, the Pentagon's Replicator program and more.

The services have received several systems under the Rapid Defense Experimentation Reserve program:

DOD highlights successful prototype transitions to defend RDER funding

The Pentagon has released project details for several systems that have successfully transitioned to the military services via the Rapid Defense Experimentation Reserve program, which senior officials have been defending amid recent congressional criticism.

Both Senate appropriators and authorizers have sections in their respective FY-25 bills that would consolidate funding lines for unmanned systems in the Army budget:

Camarillo: Authorities in Senate bill could reduce reprogramming requests for tactical UAVs, CUAS interceptors

Proposed authorities in Senate appropriators' fiscal year 2025 defense spending legislation that would give the Army additional budget line item consolidation could cut down on the number of reprogramming requests needed in the area of tactical unmanned aerial systems and counter UAS interceptors, Army Under Secretary Gabe Camarillo said Thursday.

Continuing our coverage of the Pentagon's Replicator program:

Replicator tranche two systems selected but not revealed

Systems for the second Replicator tranche have been selected, though there are still more decisions to be made for the next round of capabilities and systems, according to the chief of the Defense Innovation Unit.

We interviewed SheildAI's president this week:

ShieldAI president: Air Force doesn't need another manned fighter

Unmanned fighter jets could be fielded "way" before the end of the decade, or the Air Force's planned timeline for operating Collaborative Combat Aircraft, Brandon Tseng, co-founder and president of ShieldAI, told Inside Defense.

The Defense Department's top acquisition official spoke to reporters during the National Defense Industrial Association’s annual emerging technology conference this week:

LaPlante working to establish new armaments production forum in the Indo-Pacific

Pentagon acquisition chief Bill LaPlante said Wednesday he is planning to travel to the Indo-Pacific region soon to help establish a defense industrial forum with the national armaments directors of U.S. allies, much like his regular engagements with NATO nations in Europe, which have been focused on increasing weapons production and bolstering supply chains.

By John Liang
August 8, 2024 at 1:44 PM

This Thursday INSIDER Daily Digest has news on the Navy searching for cheap solutions to foreign adversaries' use of inexpensive weapons, the Defense Innovation Unit's work in Europe and more.

Since last October -- when Houthi drone and missile attacks on ships transiting the Red Sea began -- the Navy has struggled to identify cost-effective methods for countering these threats:

Global solution needed to preserve stability in Red Sea, 5th Fleet commander says

Although unmanned technology may provide the Navy an edge when countering Houthis in the Red Sea, the long-term solution is not any one weapon system, Vice Adm. George Wikoff, commander of U.S. Naval Forces Central Command, U.S. 5th Fleet and Combined Maritime Forces, said yesterday.

Glenn McCartan, DIU's representative to EUCOM, spoke this week at the National Defense Industrial Association’s annual technology conference:

DIU's EUCOM lead says Ukraine has speed, risk tolerance that DOD lacks

The Ukrainian military has the emerging technologies the Pentagon has been scrambling to field at the scale it desires, and the difference is risk tolerance, according to the Defense Innovation Unit's lead at U.S. European Command.

The Space Force is looking to break apart software development programs into smaller components, rather than comprehensive but complicated programs that tend to experience more delays:

Calvelli: Breaking up software development could prevent problems affecting OCX delivery

The Space Force is shifting its software acquisition policies, acquisition chief Frank Calvelli said today, learning from the problems and delays of the Next Generation Operational Control System for the GPS enterprise.

A program office is always on the lookout to acquire technical data to support a weapon system:

Acquisition of Super Hornet technical data package will allow Navy to be self-sufficient, program manager says

As the shutdown of the production line for Boeing's F/A-18E/F Super Hornet is imminent, the Navy's steps to acquire the aircraft's technical data will boost sustainment -- allowing the service to operate the Super Hornet over the next two decades, at least.

The Senate Appropriations Committee, in its mark of the fiscal year 2025 defense spending bill, recommends adding $200 million to begin work on a project that would install skis on Air Force C-130 aircraft, which Lockheed Martin and the New York Air National Guard have been eyeing for at least seven years:

Congress eyes brand new C-130J variant for the High North: Ski-equipped LC-130J

A key congressional panel wants a new, ski-equipped C-130 intratheater aircraft to give the U.S. military a fully modernized polar tactical airlift capability, recommending funding for a first-ever LC-130J in what could be the start of a project to recapitalize an aging fleet needed to ensure logistical capability across the High North.

Under Secretary of Defense for Research and Engineering Heidi Shyu said this week that bureaucratic roadblocks are exacerbating the "valley of death" many companies face when trying to move a developmental technology to a production contract:

Shyu defends RDER and DOD's rapid tech push

The Pentagon's technology chief said she and her team are working hard to accelerate rapid defense innovation, despite a system that seems designed to stifle it.