The Insider

By John Liang
September 9, 2024 at 3:14 PM

General Dynamics Information Technology announced today that it has bought artificial intelligence and machine learning company Iron EagleX for an undisclosed amount.

Iron EagleX provides AI/ML, cyber, software development and cloud services for special operations forces and the intelligence community.

"The acquisition expands GDIT's portfolio of differentiated technology capabilities and further strengthens its ability to support defense and intelligence missions across all warfighting domains," a GDIT statement reads. "It is also a key part of the company's technology investment strategy launched last year, which includes investments in technologies such as AI, cyber, software development and quantum."

By Theresa Maher
September 9, 2024 at 3:13 PM

The Defense Department is awarding $4.2 million to Rare Earth Salts to develop and expand the production of terbium, a crucial element for rare earth magnets in many key defense systems, according to an announcement today.

The award, made via the Defense Production Act Investments (DPAI) office, will allow the Beatrice, NE-based company to develop and expand production of terbium oxide from recycled fluorescent light bulbs, according to DOD.

“This award adds a domestic source for one of the most difficult-to-obtain rare earth elements,” Laura Taylor-Kale, assistant secretary of defense for industrial base policy, said in the DOD release. “Rare Earth Salts’ capability will help the United States establish a mine-to-magnet supply chain without reliance on foreign sources of material.”

Terbium, which makes up less than 1% of total rare earth content in most deposits, “adds temperature resiliency to neodymium iron boron magnets” used in key defense systems like aircraft, submarines and missiles, according to the release.

The company will also recover rare earths lanthanum, cerium, europium and yttrium -- which each serve commercial and defense applications.

By aiding in the establishment and expansion of production for these rare earth elements via the Nebraska company, the funding will also support the 2024 National Defense Industrial Strategy’s priority to increase supply chain resilience “by expanding domestic production and sustainment of critical production,” DOD said.

The investment will also help bolster Rare Earth Salts’ unique position as “one of the only terbium oxide producers outside of China,” according to the release.

The funding marks the latest of more than 50 awards granted via the DPAI office since the beginning of fiscal year 2024, totaling more than $518 million, according to the Pentagon.

By John Liang
September 9, 2024 at 2:18 PM

This Monday INSIDER Daily Digest has news on House Republicans' proposed stopgap continuing resolution, Defense Department cybersecurity efforts and more.

House Republicans' proposed continuing resolution hasn't made the Pentagon's top civilian a fan:

Austin comes out swinging against GOP's proposed six-month CR

The House GOP's proposal to pass a six-month stopgap continuing resolution would have "devastating" impacts on military readiness and modernization, including the Pentagon's new Replicator drone program, according to a new letter Defense Secretary Lloyd Austin has sent to congressional leaders.

Document: Austin letters to lawmakers on CR

Document: House GOP lawmakers' FY-25 CR

Austin also spoke at a meeting of the Ukraine Defense Contact Group at Ramstein Air Base, Germany, last week:

Austin: U.S. working to co-develop substitute S-300 and R-27 missiles with Ukraine

Defense Secretary Lloyd Austin announced today that the United States, with help from several European companies, is working with the Ukrainian weapons industry to "design and build" substitute munitions for the Soviet-era S-300 surface-to-air missile system and the R-27 air-to-air missile.

More coverage from last week's Billington Cybersecurity Conference:

New Pentagon cyber policy official seeks to elevate CYBERCOM's priorities

The dual role of assistant secretary of defense for cyber policy and principal cyber adviser to the defense secretary allows the person in it to act as liaison and streamlining agent, according to Michael Sulmeyer, the first Pentagon official to hold the position.

General Dynamics, with its partner Iridium, will continue its ground management and integration, operations and sustainment work for the Proliferated Warfighter Space Architecture through fiscal year 2029:

General Dynamics awarded $492 million to continue ground management for SDA

The Space Development Agency has awarded General Dynamics a $491.6 million contract to continue its ground management and integration work for the agency's constellation of tracking and data transport satellites.

The Army has undertaken a number of initiatives to increase 155mm munitions production capacity such as opening a new modular metal parts production facility in Mesquite, TX earlier this year:

Bush says engineering challenges have caused minor delays with 155mm round production

Army acquisition chief Doug Bush says the Army is still on track to meet its objective of producing 100,000 155mm rounds per month by late fiscal year 2025, but various engineering challenges in the production process have led to delays that can sometimes last a few weeks.

By Theresa Maher
September 9, 2024 at 10:24 AM

The Defense Department awarded $25.8 million to Honeywell to domestically manufacture or procure strategic radiation-hardened microelectronics, according to an announcement Friday.

The award, made via the Defense Production Act Investments (DPAI) office, will fund strategic radiation-hardened microelectronics production via a Defense Microelectronics Agency-approved process, according to DOD.

“The DOD requires trusted and reliable radiation-hardened microelectronic and subcomponents to support strategic and space missions,” Assistant Secretary of Defense for Industrial Base Policy Laura Taylor-Kale said in the press release. “This project ensures components are available to meet demand for current and future U.S. systems.”

The Pentagon’s investment will also sustain 90-nanometer technology development at Honeywell’s microelectronics foundry in Minnesota, according to the press release. The technology plays a key role in semiconductor manufacturing to create integrated circuits -- also known as microchips -- with a minimum feature size of 90nm.

By aiding the production and technology development for strategic radiation-hardened microelectronics and its subcomponents at the Minnesota foundry, the investment will also support the 2024 National Defense Industrial Strategy’s goal to “expand domestic production and increase supply chain resilience,” according to the release.

The funding that DOD announced would go to Honeywell marks the latest of more than 50 awards granted via the DPAI office since the beginning of fiscal year 2024, totaling more than $514 million, according to the Pentagon.

By Tony Bertuca
September 9, 2024 at 5:00 AM

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

Monday

The Atlantic Council hosts a discussion on climate change and its impact on national defense and global security.

Tuesday

The U.S. Chamber of Commerce holds its Global Aerospace Summit in Washington. The event runs through Wednesday.

The FedTalks 2024 Summit is held in Washington.

Thursday

The Senate Armed Services Committee holds a nomination hearing for Air Force Lt. Gen. Steven Nordhaus to be general and chief of the National Guard Bureau, and Vice Adm. Alvin Holsey to be admiral and commander of U.S. Southern Command.

The Stimson Center hosts a discussion with Army Secretary Christine Wormuth.

By John Liang
September 6, 2024 at 1:52 PM

This Friday INSIDER Daily Digest has news on the F-35 Joint Strike Fighter program breaking a $2 trillion cost threshold, the U.S. and its allies ramping up work with the Ukrainian weapons industry and more.

We start off with news on the Defense Department's biggest acquisition program in history:

F-35 program breaches the $2 trillion cost threshold in new report to Congress

The F-35 Joint Strike Fighter program has reported a new cost estimate that breaks the $2 trillion barrier to acquire and operate, including a revised aircraft and engine tab of $485 billion that essentially doubles the original price tag formulated based on Lockheed Martin's design.

Document: MSAR on the F-35 program

Defense Secretary Lloyd Austin, at a meeting this week of the Ukraine Defense Contact Group at Ramstein Air Base, Germany, said the United States and its allies will need to invest in Ukraine's indigenous defense industry if the nation is to make a long-term stand against Russia:

Austin: U.S. working to co-develop substitute S-300 and R-27 missiles with Ukraine

Defense Secretary Lloyd Austin announced today that the United States, with help from several European companies, is working with the Ukrainian weapons industry to "design and build" substitute munitions for the Soviet-era S-300 surface-to-air missile system and the R-27 air-to-air missile.

The Army has been steadily ramping up its production of the artillery for the last couple of years to support Ukraine in its ongoing conflict with Russia:

Bush says engineering challenges have caused minor delays with 155mm round production

Army acquisition chief Doug Bush says the Army is still on track to meet its objective of producing 100,000 155mm rounds per month by late fiscal year 2025, but various engineering challenges in the production process have led to delays that can sometimes last a few weeks.

Air Force acquisition czar Andrew Hunter this week talked about a "next-generation acquisition model," reflective of the next-generation family of systems and programs the service is prioritizing for air dominance and aerial refueling:

Air Force's new software-based acquisition model is shaking up the way industry does its bidding

As autonomy and other innovative technology emerge rapidly out of research and development and into the field, the Air Force is changing the way it thinks about acquisition to center systems over platforms, forcing industry to also pivot how it presents products.

Coverage from this week's Billington Cybersecurity Summit:

Neuberger teases potential cyber executive order focusing on lessons learned from AI work

Deputy National Security Adviser for Cybersecurity Anne Neuberger highlighted the benefits of artificial intelligence when it comes to cybersecurity at the Billington Cybersecurity Summit and offered a sneak peek into a potential cyber executive order that will incorporate lessons learned.

Software modernization guidance coming, acting CIO says

The Defense Department is preparing to release a new instruction to further guide implementation of its software modernization strategy, Leslie Beavers, acting chief information officer for the Pentagon, said Wednesday.

By Nick Wilson
September 5, 2024 at 4:12 PM

Navy Secretary Carlos Del Toro violated U.S. law when he made statements supporting President Biden’s reelection bid during a public appearance earlier this year, according to a Thursday Office of Special Counsel report.

While answering questions after a January speech in London, Del Toro made multiple statements endorsing Biden’s candidacy and opposing former President Trump. These comments, which occurred prior to Biden’s exit from the race, violate the Hatch Act, according to an OSC report submitted to the White House.

The 1939 law prevents federal employees from engaging in political activity while acting in an official capacity and forbids them from using their official authority to influence the results of an election.

“When speaking in his official capacity on a taxpayer-funded trip, Secretary Del Toro encouraged electoral support for one candidate over another in the upcoming presidential election. By doing so, he crossed a legal line and violated the Hatch Act,” Special Counsel Hampton Dellinger said in the report. “This is especially troubling because Secretary Del Toro has himself acknowledged that military work and partisan politics should not be mixed.”

While answering questions after a Jan. 25, 2024 speech at the Royal United Services Institute in London, Del Toro said, “I'm confident that the American people will step up to the plate come November and support President Biden for a second term as our commander-in-chief, so that we can continue to work together as free democratic countries respect each other around the globe," the report states.

Del Toro later self-reported these remarks to OSC. The watchdog’s report also includes a written response from Del Toro’s lawyer, Michael Bromwich, arguing the Navy secretary’s comments do not constitute a violation of the Hatch Act because they were a “spontaneous and unpremeditated” response to a question and not part of prepared remarks.

However, Dellinger and OSC reject this argument and indicate that although Del Toro self-reported the comments, this should not absolve him. It is unclear what consequences Del Toro will face as a result of the violation.

Asked about the OSC report during a press briefing today, Deputy Pentagon Press Secretary Sabrina Singh emphasized the importance of complying with federal law but made no specific comment on the report’s findings, saying it is still under review at the Defense Department.

By John Liang
September 5, 2024 at 2:35 PM

This Thursday INSIDER Daily Digest has news on Army, Navy and Air Force unmanned systems.

Army unmanned systems news:

EDGE exercise this month will help flesh out Launched Effects requirements

During its Experimental Gateway Demonstration Event (EDGE) this month at Yuma Proving Ground, AZ, the Army plans to further refine its requirements and acquisition strategy for unmanned systems and Launched Effects.

Air Force unmanned systems news:

CCA mission systems to use slightly different acquisition approach than airframe, autonomy

The Air Force's Collaborative Combat Aircraft has been championed by Pentagon personnel and some lawmakers for its speed-to ramp acquisition model to fill capability gaps and ability to bring an affordable mass to the warfighter, but not every aspect of the program will be purchased the same way, according to the service's acquisition chief Andrew Hunter.

Navy unmanned systems news:

Navy developing standards-based acquisition approach for autonomous and unmanned tech

The Navy is working on a new acquisition model for autonomous and unmanned technologies that will provide common, government-owned standards for these systems, allowing more vendors to compete for work and giving the sea service greater speed and flexibility in its technology development.

The Space Force's No. 2 uniformed official spoke this week at the Defense News Conference:

Space Force vice chief calls for increased budget for 'asymmetric advantage'

The Space Force needs more resources in upcoming budgets to maintain an "asymmetric advantage" both in space and across domains, while any cuts would benefit potential adversaries including China, according to Vice Chief of Space Operations Gen. Michael Guetlein.

More space news:

SDA's first satellites successfully demo optical links

The Space Development Agency logged another success with its Proliferated Warfighter Space Architecture last night when some of its first satellites were able to acquire and maintain a data link through lasers and optical sensors, agency Director Derek Tournear said.

By Dan Schere
September 5, 2024 at 2:31 PM

The Army is asking industry to provide information about self-propelled howitzer systems that have a high level of maturity and could be in service as early as 2026 absent any government investment, according to a request for information the service issued Aug. 28.

Additionally, the notice states “information regarding fielding to Ukraine may be considered,” although the government is mainly interested in maturation that has been completed outside of the Ukraine war.

This past spring, the Army announced it was ending development of the Extended Range Cannon Artillery Program, however, service leaders have emphasized the extended-range requirement still stands.

The Army is attempting to replace its current M109 Paladin howitzers, which have a range of 40 km. With ERCA, the Army had set a goal of producing a howitzer capable of hitting targets more than 100 km away.

Secretary Christine Wormuth told attendees at the Defense News conference this week that the Army still believes there is a requirement for an artillery system with a range similar to the one pursued during ERCA.

“There are obviously companies that already make systems that don’t have quite the range that ERCA we hoped would give us but comes quite close. So, I think we’re going to be looking at those kinds of offerings,” she said.

The Army will also try to “innovate at the round” to increase the range of the new system, Wormuth added.

The main purpose of the Aug. 28 RFI is to gauge the maturity of howitzer systems from industry. The Army is mainly interested in systems “that have a high maturity and minimize or eliminate development time,” the notice states. Information from responses will be used to assess the “viability of potential future acquisition strategies.”

Responses to the RFI are due Sept. 27.

By Nick Wilson
September 5, 2024 at 2:14 PM

Naval Air Systems Command is preparing to publish a request for proposals in January for a forward-looking infrared system for the CH-53K heavy lift aircraft, according to a notice published last week.

The FLIR is an avionics component providing navigation and situational awareness capabilities to the helicopter, enabling pilots to see in low-visibility conditions like rain and fog, the notice indicates.

Before releasing the official RFP, the Navy plans to hold an industry day in December at Patuxent River Naval Air Station in Maryland. NAVAIR hosted an initial industry day last fall and has outlined preliminary system specifications.

According to a draft statement of work included in last week’s notice, “the contractor shall provide a FLIR system for integration into the CH-53K and provide data necessary to support the FLIR system’s operation, maintenance, installation, calibration, testing and platform software development.”

The FLIR will be mounted on a “slewable stabilized turret with target detection and tracking, servo control, video processing, digital data processing and signal conditioning functions,” the notice states. The system’s total weight -- including the turret -- will not exceed 106 pounds, and it must be capable of detecting a “standing man-sized target” from 3.8 kilometers away.

The CH-53K will replace the legacy CH-53E as the Navy and Marine Corps’ primary, and only, heavy-lift aircraft. The Marine Corps is planning an initial deployment in calendar year 2026. The services plan to procure 200 of the aircraft in total, including 19 in FY-25 for approximately $2.5 billion.

The FY-25 budget request also looks to begin a multiyear procurement deal to purchase up to 321 aircraft engines over the next five years, and the Marine Corps’ latest unfunded priorities list includes $250 million for two additional CH-53Ks.

In April, the Navy asked Congress for the authority to enter a block-buy contract during FY-25 or FY-26 for up to 37 CH-53K airframes -- a move expected to save $135 million compared to single-year contracts.

By Sara Friedman
September 5, 2024 at 1:56 PM

The Justice Department has announced the disruption of two covert foreign malign influence campaigns backed by the Russian government and targeted at impacting the 2024 election and spreading propaganda in support of the Russian invasion of Ukraine.

DOJ indicted two employees from media outlet Russia Today over a “$10 million scheme to create and distribute content to U.S. audiences with hidden Russian government messaging,” Attorney General Merrick Garland said in a Wednesday release.

“The Justice Department will not tolerate attempts by an authoritarian regime to exploit our country’s free exchange of ideas in order to covertly further its own propaganda efforts, and our investigation into this matter remains ongoing,” Garland said.

A second DOJ operation unveiled on Wednesday seized 32 internet domains, colloquially known as “Doppelganger,” under control of three Russian companies that “covertly spread Russian government propaganda with the aim of reducing international support for Ukraine, bolstering pro-Russian policies and interests, and influencing voters in U.S. and foreign elections, including the U.S. 2024 Presidential Election,” according to a DOJ release on the unsealed affidavit.

FBI Director Christopher Wray weighed in on the influence campaigns at a Wednesday meeting of the DOJ Election Threats Task Force.

On the domain seizure, Wray said, “As of noon today, we’ve seized those sites, rendered them inoperable, and made clear to the world what they are: Russian attempts to interfere in our elections and influence our society.”

The Treasury Department also took action against RT on Wednesday by designating 10 individuals who work for the Russian media company over being controlled or acting on behalf of the Russian government.

Treasury said in a release, “Beginning in early 2024, executives at RT -- Russia’s state-funded news media outlet -- began an even more nefarious effort to covertly recruit unwitting American influencers in support of their malign influence campaign. RT used a front company to disguise its own involvement or the involvement of the Russian government in content meant to influence U.S. audiences.”

“Today’s action underscores the U.S. government’s ongoing efforts to hold state-sponsored actors accountable for activities that aim to deteriorate public trust in our institutions. Treasury will not waver in our commitment to safeguarding our democratic principles and the integrity of our election systems,” Treasury Secretary Janet Yellen said.

The coordinated efforts by DOJ and Treasury come at a time when the intelligence community and the Cybersecurity and Infrastructure Security Agency are on high alert to support state and local election officials in their efforts to prepare for the November elections.

The Office of the Director of National Intelligence, the FBI and CISA in August confirmed efforts by Iran-backed actors to influence the November elections in a joint statement over observed activity impacting political campaigns.

By John Liang
September 4, 2024 at 2:12 PM

This Wednesday INSIDER Daily Digest has news on Army funding for unmanned systems, Navy submarine funding, the Marine Corps' Autonomous Low Profile Vessel program and more.

The Army's top civilian spoke at the Defense News conference in Arlington, VA this morning:

Wormuth expects line item consolidation for UAS, cUAS, EW funding to show up in FY-26

The areas of unmanned aerial systems, counter UAS and electronic warfare are slated to undergo budgetary line item consolidation when the fiscal year 2026 budget is rolled out next spring, Army Secretary Christine Wormuth said today.

A Biden administration request for continuing resolution "anomalies" obtained by Inside Defense states that "language is needed" to appropriate $1.95 billion to the Navy's shipbuilding account for "expenses necessary for procurement of two Virginia-class submarines":

White House seeks nearly $2B in CR relief for Navy subs

The White House is asking Congress to avert a government shutdown next month by passing a stopgap continuing resolution that would run through mid-December and include nearly $2 billion to procure two Virginia-class submarines, according to the Office of Management and Budget.

Document: OMB's request for CR 'anomalies'

The Autonomous Low Profile Vessel (ALPV) -- a 55-foot, semi-submersible unmanned platform developed by the Marine Corps over the past year and a half as a means of carrying missiles and other equipment to land forces -- has performed well in recent tests according to Brig. Gen. Simon Doran, who said the service is eager to field the system:

Marine Expeditionary Unit to begin testing autonomous resupply vessel in Indo-Pacific this fall

The Marine Corps will send a developing autonomous vessel, intended to covertly resupply stand-in forces with weapons and supplies, to the Japan-based 3rd Marine Expeditionary Unit for field testing this fall, according to the head of the Marine Corps Warfighting Laboratory.

A new Defense Department inspector general's report "found that the Air Force did not consistently hold contractors accountable in a timely fashion for providing defective spare parts, nor did it obtain restitution from the contractors for those defective parts":

DOD watchdog: Air Force not consistent in seeking restitution for defective spare parts

The Air Force has taken on millions in losses because personnel lack training to adequately identify defective parts or correctly seek restitution from contractors, according to a recent report from the Pentagon’s inspector general.

Document: DOD IG audit of Air Force defective parts and contractor restitution

A new Pentagon proposal would change language in the 2023 Code of Federal Regulations on other transaction agreements for prototype projects:

DOD proposes rule to streamline prototyping

The Defense Department is proposing to expand and clarify language in the regulatory code allowing the implementation of authorities granted by Congress in a 2023 update to the U.S. Code regarding procurement of prototype projects, according to a recent Federal Register notice.

By Dan Schere
September 3, 2024 at 2:37 PM

The Army has increased the ceiling of an indefinite delivery, indefinite quantity contract for the Guided Multiple Launch Rocket System by $3.4 billion, according to manufacturer Lockheed Martin.

An Aug. 30 Pentagon contract notice states “work locations and funding will be determined with each order” and the estimated completion date is Oct. 20, 2027.

The ceiling modification will “allow the increase of inventory of GMLRS rockets and associated equipment,” according to a Lockheed statement provided to Inside Defense today. Quantities awarded will be based on future demand.

“The congressional announcement is a modification to the Indefinite-Delivery Indefinite-Quantity (IDIQ) production contract which increases the IDIQ ceiling value by $3.4 billion to support future GMLRS awards,” the company stated.

In April, the Army announced plans to award a four-year, multiyear procurement contract to buy 18,000 GMLRS missiles by the fourth quarter of fiscal year 2024. The Defense Department comptroller estimated the service would save nearly $68 million, or $2.5%, “when compared to four annual awards,” Inside Defense reported at the time.

In May 2023 the Biden administration formally submitted its request to Congress to include multiyear procurement authority for GMLRS in the FY-24 budget request, as part of a series of requests for multiyear buys of munitions deemed critical to support Ukraine and Taiwan.

By John Liang
September 3, 2024 at 2:06 PM

This Tuesday INSIDER Daily Digest has news on artificial intelligence and more.

The launching of the Defense Department's chief digital and artificial intelligence office's Open Data and Analytics Government-owned Interoperable Repositories (Open DAGIR) initiative was the office's recognition that the government’s typical practice of selling software capabilities in vertically integrated stacks wouldn’t produce the best results for DOD:

DOD innovators wrestling with bureaucracy, cultural barriers

The Defense Department's aversion toward risk and change, coupled with its tendency to cling to traditional acquisition processes, are its biggest barriers to adopting new technologies and capabilities, according to Pentagon innovation leaders.

A new Accreditation of GEOINT AI Models, or AGAIM, will evaluate the "methodology and robustness" of an artificial intelligence model's development and test procedures:

NGA piloting AI model validation system

The National Geospatial-Intelligence Agency is piloting a program to accredit artificial intelligence models to create a unified validation system across the agency, according to director Vice Adm. Frank Whitworth.

A $200 million "administrative settlement" between the State Department and RTX will resolve 750 violations of the Arms Export Control Act and International Traffic in Arms Regulations:

RTX to pay $200M fine for allegedly exporting defense tech to China

RTX, formerly known as Raytheon Technologies, has agreed to pay a $200 million civil penalty for allegedly exporting U.S. defense technology and intellectual property to foreign countries, including China, according to a new State Department announcement.

Defense Department officials aren't paying full price for the F-35 Joint Strike Fighter just yet:

Pentagon withholding $5 million per tail as Lockheed delivers incomplete F-35s

The Defense Department is withholding about $5 million for each F-35 Joint Strike Fighter delivered with a truncated version of the Technology Refresh-3 software upgrade, a spokesperson with the F-35 Joint Program Office told Inside Defense.

In case you missed it last week, here's our deep dive into the Pentagon's Rapid Defense Experimentation Reserve program, now available to all:

DOD officials defend rapid experimentation projects at key tech demo

EDINBURGH, IN -- The Rapid Defense Experimentation Reserve may not appear to reflect the first word in its acronym to Senate appropriators who have criticized RDER for failing to transition more weapon systems to the battlefield, but senior Pentagon officials suggest that lawmakers looking to cut the program don’t fully appreciate RDER’s challenges given the slowness of the traditional acquisition and budgeting cycle.

By Theresa Maher
September 3, 2024 at 12:40 PM

EDINBURGH, IN -- The Rapid Defense Experimentation Reserve may not appear to reflect the first word in its acronym to Senate appropriators who have criticized RDER for failing to transition more weapon systems to the battlefield, but senior Pentagon officials suggest that lawmakers looking to cut the program don’t fully appreciate RDER’s challenges given the slowness of the traditional acquisition and budgeting cycle.

“Each RDER class is planned two years in advance, to align with the department’s budget process. The projects that you’ll see today were actually selected in ‘22, and if successful, they will transition in ‘25,” Marcia Holmes, principal deputy to assistant secretary of defense for mission capabilities, told reporters and other guests at Camp Atterbury, IN, last week.

Read the full story, now available to all.