The Insider

By Nickolai Sukharev
October 4, 2023 at 12:49 PM

The Army has awarded Lockheed Martin a contract to build early capability versions of the Precision Strike Missile, the Defense Department announced Friday.

Lockheed Martin will build the Precision Strike Missile (PrSM) in the Early Operational Capability Lot 3 form for $67.5 million by an estimated completion date of Sept. 30, 2026, with the work being done at the company’s facility in Grand Prairie, TX, the announcement reads.

Friday’s announcement follows a 2022 contract for Lockheed to build the Early Operational Capability Lot 2 form.

The Army expects to conduct operational testing on the PrSM in 2024 with low-rate initial production, full-rate production and initial capability testing scheduled for 2025, according to the Government Accountability Office's 2023 Weapons Systems Annual Assessment.

Slated to replace the Army Tactical Missile System, the PrSM is a ground-to-ground ballistic missile designed to hit targets up to 400km and can be launched from HIMARS and M270 multiple launch vehicles.

According to Defense Department budget documents, the PrSM will cost $1.2 billion, with 110 to be procured in fiscal year 2024 and 190 in FY-25.

Earlier in 2023, the Senate Armed Services Committee urged the Army to procure 400 PrSMs per year while the service has considered issuing multiyear contracts for the system.

In August, the Army confirmed the PrSM program was on track and meeting the expected benchmarks.

Australia and the United Kingdom are also expected to acquire the PrSM.

By Tony Bertuca
October 4, 2023 at 12:03 PM

U.S. Central Command announced today it has transferred millions of rounds of ammunition to Ukraine previously seized from the Iranian military, a move that could help alleviate weapons shortages as the Pentagon warns it is running out of money to help Kyiv continue its fight against an ongoing Russian invasion.

The announcement, first reported by CNN, follows statements from the Pentagon that it is running low on Ukraine aid funds amid chaos among Republicans on Capitol Hill.

The Oct. 2 weapons transfer, according to CENTCOM, included approximately 1.1 million 7.62mm rounds.

CENTCOM said its naval forces first seized the munitions on Dec. 9, 2022, when they were being transferred by Iran’s Islamic Revolutionary Guard Corps to the Houthis in Yemen “in violation of the United Nations Security Council Resolution 2216.”

The U.S. government later took possession of the munitions as part of the Justice Department’s civil forfeiture claims policy.

“The U.S. is committed to working with our allies and partners to counter the flow of Iranian lethal aid in the region by all lawful means including U.S. and U.N. sanctions and through interdictions,” CENTCOM said. “Iran’s support for armed groups threatens international and regional security, our forces, diplomatic personnel and citizens in the region, as well as those of our partners. We will continue to do whatever we can to shed light on and stop Iran’s destabilizing activities.”

Meanwhile, the weapons are slated to flow to Ukraine at a time when many House Republicans oppose additional aid for Kyiv and recently voted to oust Rep. Kevin McCarthy (R-CA) as speaker.

Pentagon Comptroller Mike McCord has sent a memo to Congress warning that the Defense Department has exhausted all congressionally appropriated funding for the Ukraine Security Assistance Initiative and is slowing down the process by which it replenishes U.S. weapons that have been transferred to Ukraine.

By John Liang
October 4, 2023 at 11:26 AM

VideoRay announced today that it has acquired Blue Ring Imaging, a St. Petersburg, FL-based company that works on 3D visualization, multiview perception and simulation for unmanned systems.

Pottsdown, PA-based VideoRay is the producer of the Mission Specialist Defender robot recently selected by the Navy for underwater mine detection and disposal.

Blue Ring Imaging "will improve situational awareness and object detection capabilities of the Defender," VideoRay said in a statement.

The Blue Ring Imaging purchase "will drive the expansion of VideoRay's capabilities," the statement continues. "VideoRay will incorporate Blue Ring's expertise in artificial intelligence (AI), autonomy, augmented reality/virtual reality (AR/VR), 3D visualization and reconstruction, simulation and man-machine teaming, allowing vehicles to conduct missions more autonomously and effectively. This advanced technology will in many cases eliminate the need for experienced operators, while saving time and money."

Terms of the acquisition weren't released.

By Tony Bertuca
October 3, 2023 at 4:56 PM

The House voted 216-210 to remove Rep. Kevin McCarthy (R-CA) as speaker, rendering the position vacant for the first time in more than a century in a stunning and historic event driven by revolt among Republican hardliners.

Eight Republicans, led by Rep. Matt Gaetz (R-FL), joined every House Democrat to push McCarthy out.

Meanwhile, Congress has until Nov. 17 to pass a bipartisan spending package or a stopgap continuing resolution, otherwise the federal government will shut down.

Gaetz led other anti-McCarthy Republicans in speeches on the House floor in which they alleged that the now-toppled speaker reversed himself on agreements with the Freedom Caucus related to spending issues, border security and aid for Ukraine. They also highlighted McCarthy’s role in passing a CR over the weekend that relied on Democratic votes to avert a government shutdown.

By Apurva Minchekar
October 3, 2023 at 3:25 PM

The Defense Department awarded contracts to three vendors to design spacecraft that use nuclear fission to provide electricity to spacecraft systems, according to a Friday announcement.

The Joint Emergent Technology Supplying On-Orbit Nuclear Power contract was awarded via the Air Force Research Laboratory, DOD noted in the announcement.

According to the announcement, Lockheed Martin has received $33 million to lay out the technical design of the JETSON high-power mission program application, work that is expected to be completed by December 2025.

“This contract provides for the JETSON effort to mature the technical design of the JETSON spacecraft systems and subsystems to a preliminary design review level of maturity and to fully develop the overall program development and test program planning through critical design review,” DOD said.

At the same time, Intuitive Machines, a Houston, TX-based aerospace company, has been awarded $9 million for the JETSON low-power mission program application contract. DOD noted that the spacecraft design must “employ compact radioisotope power system, electric and/or hybrid propulsion and related support systems in critical areas.”

AFRL also awarded Westinghouse Government Service with a JETSON high-power mission program application contract worth $16.9 million to “mature relevant technologies, conduct analyses, trade studies and explore risk-reduction strategies to investigate how a high power, nuclear fission-system could be implemented from a subsystem, spacecraft, and architecture standpoint.”

Earlier this year, AFRL released two separate solicitation notices for high-power mission program application and low-power mission program application.

AFRL, in its high-power mission program application notice, stressed it is looking to collaborate with vendors whose spacecraft functionality can “enhance the spacecraft components and subsystems to enable game-changing improvements in agility, resilience, affordability and performance for DOD spacecraft.”

By John Liang
October 3, 2023 at 2:07 PM

This Tuesday INSIDER Daily Digest has news on the F-35 Joint Strike Fighter program, Lockheed Martin investing in a robotics company, the Defense Innovation Unit seeking contractors to develop unmanned aerial delivery vehicles and more.

We start off with a look at the Pentagon's latest Selected Acquisition Report on the F-35 Joint Strike Fighter program:

F-35 full-rate production decision may come this quarter as O&S projection tops $1.5T

The Defense Department may finally make a full-rate production decision for its F-35 Joint Strike Fighter before the end of the year, but operating and sustaining costs are now expected to top $1.5 trillion over the platform's lifetime.

Document: DOD's December 2022 F-35 selected acquisition report

Lockheed Martin is investing in a robotics company:

Lockheed investment arm backs AI autonomy start-up Vayu Robotics

Lockheed Martin's venture capital arm has teamed with other investors to provide $12.7 million to Vayu Robotics -- a "non-traditional robotics company" that is making its public debut with this development -- to scale development of artificial intelligence-backed autonomy technologies for potential use across a wide range of markets.

The Defense Innovation Unit is seeking contractors to develop unmanned aerial delivery vehicles:

Low-cost unmanned aerial delivery vehicles proposed for mass production

Unmanned aerial delivery vehicles mass-produced cheaply, developed quickly and capable of deploying commercial payloads are in the sights of the Defense Innovation Unit, which posted a "solutions" notice seeking less-costly alternatives to current platforms.

The Army recently issued a request for information seeking industry input for its next-generation night vision system:

Army soliciting feedback for next IVAS variant

The Army is soliciting feedback from industry for the next variant of the Integrated Visual Augmentation System, which it is calling IVAS Next.

The continuing resolution agreed upon by congressional lawmakers this past weekend doesn't include funding for Ukraine:

DOD -- nearly out of Ukraine funds -- slows down replenishment of U.S. weapons

The Defense Department has exhausted all congressionally appropriated funding for the Ukraine Security Assistance Initiative and is slowing down the process by which it replenishes U.S. weapons that have been transferred to Ukraine, according to a new memo from Pentagon Comptroller Mike McCord.

Document: McCord letter to Congress on Ukraine funding

By Georgina DiNardo
October 3, 2023 at 12:45 PM

The Defense Department and other government agencies are proposing an amendment to federal acquisition regulations that would implement regulatory changes made by the Small Business Administration to "update and clarify" requirements related to size and socioeconomic protests, according to a notice in the Federal Register.

The proposed rule to the Federal Acquisition Regulation, which also has the backing of the General Services Administration and NASA, would address the SBA’s new requirements for submission of size and/or socioeconomic status protests in certain circumstances for the set aside or reserve of a multiple-award contract.

The Federal Register published final rules in October 2013, October 2020 and November 2022, reflecting the SBA’s requirements for submission. However, due to lack of clarification, the SBA revised the language in 13 Code of Federal Regulations 121.1004 that was last updated on Sept. 29.

In this new CFR, the SBA specifies thresholds for size protests related to “the set aside or reserve of a multiple-award indefinite-delivery indefinite-quantity (IDIQ) contract and for orders that are set-aside for small business under an unrestricted multiple-award IDIQ contract.”

Although, the CFR did specify that an exception for a submission can occur if a blanket purchase agreement or an order was placed under a Federal Supply Schedule.

SBA also amended 13 CFR 126.801, 13 CFR 125.28 and 13 CFR 127.603 to allow “socioeconomic protests for set-aside order for HUBZone, SDVOSB, or EDWOSB/WOSB concerns placed under a multiple-award IDIQ contract that is not partially or totally set aside or reserved for that particular socioeconomic category.”

In SBA’s final rule, published Nov. 29, 2022, its regulations to remove references to the service-disabled veteran small business program at 13 CFR part 125 were amended and moved to 13 CFR part 128 and 13 CFR part 134.

If this proposed rule is implemented, the Federal Register notes that agencies expect it would allow contracting officers, SBA and other interest parties to “protest the size of a concern for partial set asides and reserves of multiple-award contracts and orders that are set aside under multiple-award contracts” and “protest an order placed against a multiple-award contract where the contracting officer requested representation for the order.”

Furthermore, the proposed rule is expected to help economically disadvantaged businesses so that factors like gender and disability do not limit the company when it is placed against a multiple-award contract that is not completely in the company’s socioeconomic category, according to the Federal Register.

Finally, agencies expect that the implementation of this proposed rule would be beneficial to the government, contractors and offerors and that any cost to the government is not expected to be significant.

By Apurva Minchekar
October 2, 2023 at 4:31 PM

Space Systems Command awarded its first Space Enterprise Consortium contract to Lockheed Martin to build technology that can relay data to warfighters to respond during adverse events quickly, according to an announcement issued today.

The Overhead Persistent Infrared Data Exploitation Technology Transition I (ODETT I) Typing and Characterization Algorithm contract will be directed by SSC's Tools Applications Processing Lab in Boulder, CO, according to the command.

“This is our first SpEC ODETT award, and it represents a major step forward in TAP Lab’s efforts to improve our missile warning processes,” Steve Polliard, TAP Lab director, said in the announcement.

“The progress we will gain as a result of this work will directly inform our warfighter and contribute to our nation’s safety,” he added.

SSC’s TAP Lab is focused on leveraging software, algorithms, and applications that will extract data “effectively and rapidly interpreting OPIR data.” In addition, it will also help to classify OPIR events correctly, minimizing the response time to critical events such as “enemy missile launch.”

“To carry out OPIR missions effectively, it's crucial to quickly and accurately identify interesting space events from the data our operators receive,” Polliard said.

The service’s space operators currently support three constellations of OPIR satellites to conduct strategic missile and theater missile warnings, which provide vital intel information to missile defense forces, battlespace awareness to combatant commanders and technical intelligence to perform further analysis, according to Polliard.

Lockheed was awarded a $5.4 million contract for a four-year period, the announcement states.

By John Liang
October 2, 2023 at 2:17 PM

This Monday INSIDER Daily Digest has news on commercial telecom companies potentially getting access to a certain part of the 5G spectrum, a couple of Defense Innovation Unit projects and more.

Top military brass have repeatedly warned about the risk of repurposing the 3.1–3.45 GHz portion mid-band spectrum for telecommunications companies to develop the 5G commercial market:

DOD wraps up feasibility assessment on opening lower mid-band spectrum for 5G development

A Defense Department study exploring the feasibility of opening up a stretch of the electromagnetic spectrum -- currently the exclusive preserve of the U.S. military -- for use by commercial telecommunications companies for 5G technology is complete and has been forwarded to the Commerce Department.

Eavor, Teverra and Zanskar Geothermal and Minerals have been selected to work on geothermal projects at four installations across the United States to address potential Defense Department energy disruptions related to severe weather, cyberattacks or other events:

Air Force, Army and DIU collaborate on geothermal energy solutions

The Air Force, Army and the Defense Innovation Unit have completed agreements with three companies to work on geothermal projects to help mitigate energy-related risks to U.S. military missions.

The Defense Innovation Unit, in collaboration with the office of the under secretary of defense for research and engineering’s quantum directorate, has been working on a quantum sensing initiative since late 2020:

DIU highlights progress in quantum sensing for space

The Defense Innovation Unit is touting recent advancements in a quantum sensing initiative it began in 2020, including the delivery of a quantum sensor intended to meet the rigors of space.

The Senate Armed Services Committee held a hearing last week to consider the nominations of Derek Chollet to become under secretary of defense for policy and Cara Abercrombie to be assistant secretary of defense for acquisition:

Key DOD nominees pledge to get after Ukraine, Taiwan weapons backlogs

Two Biden administration officials who have been nominated for senior acquisition and policy posts at the Pentagon said they are committed to streamlining the contracting process for Ukraine and pledged to address the growing backlog to obligate funds appropriated by Congress.

Document: Chollet's answers to advance policy questions

Last but by no means least, a look at what the Pentagon was doing to prepare for a government shutdown hours before House and Senate lawmakers came to a compromise agreement to keep the government funded through mid-November:

DOD plans for shutdown, furloughed civilians and military working without pay

The Defense Department is taking steps to prepare for a government shutdown slated for Sunday night that would furlough thousands of civilians and require military servicemembers to work without pay until Congress can pass a stopgap continuing resolution.

By Nick Wilson
October 2, 2023 at 1:44 PM

The United Kingdom has awarded a contract worth approximately $4.8 billion to three companies for work on SSN-AUKUS -- the future submarine class set to be collaboratively designed and built by the U.K., the United States and Australia under the AUKUS security partnership.

Awarded to contractors BAE Systems, Rolls-Royce and Babcock, the funding will support the “detailed design and long leads (D2L2) phase” of SSN-AUKUS development, according to a Sunday announcement from the U.K. Defense Ministry.

“Alongside the design development and long-lead procurement, infrastructure at the submarine shipyard in Barrow-in-Furness and the nuclear reactor manufacturing site in Raynesway, Derby will be developed and expanded where needed to meet the requirement of the future submarine build programme,” the announcement states.

Early design work on SSN-AUKUS began in 2021 with manufacturing expected to start “towards the end of the decade,” a separate BAE Systems announcement states. Under the security partnership, delivery of SSN-AUKUS vessels is scheduled to begin in the late 2030s.

BAE Systems, which is currently building the Royal Navy’s nuclear-powered, conventionally armed Astute-class submarines, will also use this funding for infrastructure and supply chain investments and the planned recruitment of over 5,000 people, the company’s notice continues.

While construction of SSN-AUKUS is set to occur first in the U.K. and later in Australia, the U.S. industrial base will contribute technology and expertise to the new submarine design.

U.S. industry has urged Congress to accelerate the pace of AUKUS legislative implementation, especially when it comes to planning for SSN-AUKUS. So far, the bulk of legislative action has focused on the earlier phases of AUKUS, which will see the U.S. transfer of three or more Virginia-class submarines to Australia starting in the early 2030s.

This timeline is a source of contention in Congress, where some GOP lawmakers worry the U.S. submarine industrial base is not strong enough to keep up with this additional demand.

During a September confirmation hearing, acting Chief of Naval Operations Adm. Lisa Franchetti said industry is producing only 1.2 Virginia submarines per year, compared to the target rate of 2.2 boats needed to deliver on the AUKUS commitment.

By Tony Bertuca
October 2, 2023 at 5:00 AM

A senior Pentagon official is scheduled to discuss China's military power this week.

Wednesday

The Hudson Institute hosts a discussion on 21st century deterrence with the CEO of Lockheed Martin.

Thursday

The Center for Strategic and International Studies hosts a discussion on China's military power.

By John Liang
September 29, 2023 at 2:15 PM

This Friday INSIDER Daily Digest has news on Ukraine and Taiwan weapons backlogs, the Pentagon's "Replicator" initiative, the brouhaha over where U.S. Space Command should be headquartered, artificial intelligence and more.

The Senate Armed Services Committee this week held a hearing to consider the nominations of Derek Chollet to become under secretary of defense for policy and Cara Abercrombie to be assistant secretary of defense for acquisition:

Key DOD nominees pledge to get after Ukraine, Taiwan weapons backlogs

Two Biden administration officials who have been nominated for senior acquisition and policy posts at the Pentagon said they are committed to streamlining the contracting process for Ukraine and pledged to address the growing backlog to obligate funds appropriated by Congress.

Document: Chollet's answers to advance policy questions

The Defense Department is in the "initial stages" of implementing its "Replicator" initiative that aims to address China’s pacing challenge by creating and fielding thousands of "attritable" autonomous weapon systems over the next 18 to 24 months:

DOD team charged with overseeing 'Replicator' holds first meeting

The Deputy's Innovation Steering Group, a high-level Pentagon team that will manage the recently announced "Replicator" initiative, held its first meeting today to kickstart its mission to fill pressing military technology gaps in under 18 months.

The House Armed Services Committee held a hearing this week on the Biden administration's decision to keep U.S. Space Command headquartered in Colorado rather than move it to Alabama:

Rogers says he will only authorize funds to build SPACECOM headquarters in Alabama

House Armed Services Committee Chairman Mike Rogers (R-AL) said today he would only authorize funding for the permanent basing headquarters of U.S. Space Command "to be constructed in Huntsville, AL."

Document: House hearing on SPACECOM HQ

A new Artificial Intelligence Security Center will help industry understand, navigate, prevent and eradicate threats against its intellectual property on its way to its final goal of national AI security:

NSA director announces creation of Artificial Intelligence Security Center

The National Security Agency director today announced the creation of an Artificial Intelligence Security Center to assess risk framework and improve national security and the defense industrial base.

Although the first Littoral Combat Ship armed with the Naval Strike Missile -- the trimaran-hulled Independence-class ship Gabrielle Giffords (LCS-10) -- deployed in 2019, the Navy's plans for expanding the offensive strike capability to the rest of the fleet have been murky in recent years:

Navy plans to put Naval Strike Missiles on all remaining Littoral Combat Ships by FY-32

The Navy plans to outfit all of its Independence-class Littoral Combat Ships with the Naval Strike Missile by fiscal year 2026, and all Freedom-variant ships by FY-32, a Navy spokesperson told Inside Defense.

The Defense Department, in a Selected Acquisition Report for the OASuW Inc. 1 program, is reporting a breach of the original program targets for planned procurement on account of the decision to buy significantly more LRASM missiles, upping the combined acquisition target to 1,215 -- an increase of more than 90% compared to last year’s combined objective of 629:

Lockheed's LRASM gets $1.8 billion boost in DOD plans as 'interim' solution with 18-year run

The Air Force and Navy are beefing up their capability to sink Chinese warships from the air by nearly doubling the planned purchase of Lockheed Martin-built missiles designed to strike heavily defended surface combatants: the Offensive Anti-Surface Warfare Increment 1 -- also called the Long Range Anti-Ship Missile (LRASM).

The House Foreign Affairs Indo-Pacific subcommittee held a hearing this week on China:

Hearing looks at Chinese aggression in South China Sea

China has been increasing the scope, scale and pace of operations and interference in the South China Sea -- building military outposts, sinking Vietnamese fishing boats, disrupting Malaysian energy exploration, and flying too close to U.S. military aircraft operating lawfully in the area, according to a Defense Department official.

By Nick Wilson
September 29, 2023 at 1:07 PM

The Navy has released a draft request for proposals for the future Landing Ship Medium in a Friday notice, making draft system specifications available to select vendors ahead of an official RFP, expected before the end of the calendar year.

The notice follows an August industry day during which program officials briefed contractors on the LSM’s desired requirements. The Navy plans to field a fleet of 18-35 of the vessels, formerly referred to as the Light Amphibious Warship, each carrying a crew of 70 sailors and 50 embarked Marines, to support forward operations in the Indo-Pacific and global littorals.

Little additional information is included in today’s notice, which directs eligible U.S. companies to contact Naval Sea Systems Command to receive draft detail design and construction information and other system specifications. The notice’s response date is listed as Oct. 31.

The Marine Corps views the LSM as a critical capability for future operations, supporting its Marine Littoral Regiments and other forward forces and enabling rapid movement of personnel and equipment without the use of ports or piers.

LSMs are also expected to be significantly cheaper than existing amphibious warships, with procurement costs projected to fall to about $150 million per vessel once the program is established.

The Navy’s fiscal year 2024 budget request includes $14.7 million in research and development funding for the program and indicates a contract for the first ship will be awarded in December 2024, with delivery expected in July 2028.

By Dan Schere
September 29, 2023 at 12:15 PM

The Army has awarded a $318 million firm, fixed-price sole-source contract to BAE Systems for military-code GPS cards that are embedded in position, navigation and timing (PNT) systems, the service announced today.

The procurement method for the M-code cards differs from past contracts because it is an indefinite-delivery/indefinite-quantity award that came through the Defense Information Systems Agency. That process gives the Army program manager a “direct link to the vendor” which reduces administrative time and increases “efficient technical support and integration,” according to the Army.

Previously, the program manager for PNT procured M-code cards through external contracts, which involved “significant passthrough costs and reduced buying power.”

The Sept. 28 contract creates a “direct supply source” for Mounted and Dismounted Assured PNT systems (MAPS and DAPS) and other Defense Department programs that leverage those capabilities, according to the Army. PNT Project Manager Michael Trzeciak said in a statement that BAE’s M-code cards are the only tested ones that are compatible with MAPS and DAPS.

“The contract facilitates procurement of multiple variants of the M-code card -- meeting end system compatibility requirements for Mounted and Dismounted APNT solutions now and into the future,” he said.

By Tony Bertuca
September 29, 2023 at 10:33 AM

The GOP-led House, facing the increasing likelihood of a government shutdown on Oct. 1, narrowly passed an annual defense appropriations bill last night that has little-to-zero chance in the Democrat-led Senate and would be vetoed by President Biden over its inclusion of conservative policy riders and politically divisive amendments that would, among other things, strip military aid to Ukraine and cut Defense Secretary Lloyd Austin’s salary to $1.

The bill, which would provide $826 billion for the Defense Department, passed 218-210, includes other measures that restrict abortion access for U.S. servicemembers and targets the Pentagon’s diversity initiatives and climate-change-mitigation efforts.

Statements from House Republicans touted the bill as key to their fight against the Pentagon’s attempts at social engineering, while Democrats criticized the GOP for doubling down on a doomed bill at the 11th hour before a federal shutdown.

The bill passed following two unsuccessful floor votes last week that forced GOP leadership to re-work the legislation and remove $300 million in aid to Ukraine. Democrats uniformly oppose the measure for its inclusion of conservative amendments and House Speaker Kevin McCarthy (R-CA) needed to remove the aid money to win a handful of Republican holdouts.

A bill that would provide the aid had to be approved separately by a 311-117 vote, with more than half the GOP caucus voting against it.

The bill is unlikely to be embraced by the Democrat-led Senate, which has been working on defense spending legislation that has more bipartisan support and does not include the “anti-woke” measures sought by House Republicans.

Meanwhile, Congress has yet to pass a stopgap continuing resolution needed to avert an Oct. 1 government shutdown, which would force U.S. servicemembers to work without pay and result in the furlough of thousands of DOD civilians.