The Insider

BAE Systems will spend its own money to build new prototypes of its Armored Multi-Purpose Vehicle that incorporate counter unmanned aerial systems detection and targeting, ground autonomy and unmanned turrets, according to a recent company announcement.

The Wednesday announcement reveals a plan to develop “capability kits” to build various advanced versions of the AMPV -- which will replace the Vietnam War-era M113 -- in a move Bill Sheehy, ground maneuver product line director at BAE, said might differ from “a traditional approach to innovating for warfighters.”

“The AMPV is a proving ground for the future of tracked ground combat,” Sheehy said in a statement. “The brand-new platform is coming off a hot production line, and the proven hull is one of the most durable building blocks being delivered to the U.S. Army today. We’re committed to working alongside other technology disruptors at a pace that enhances AMPV’s capability options now, so it’s available for soldiers in a moment’s notice.”

That comes as Senate appropriators last week moved to cut $139 million from the AMPV program in its version of the fiscal year 2026 defense spending bill, which would yield 60 vehicles next year instead of the 86 the Army requested in its own budget materials.

Congressional authorizers, however, added $250 million to buy 38 more AMPVs in spending tables designed to sway the Pentagon’s investments under the $150 billion in defense spending included in the budget reconciliation bill, which passed last month and will yield a $113 billion boost for defense spending in FY-26.

BAE has also invested millions internally into another ground vehicle program, developing an upgraded prototype of the M109A7 Paladin howitzer that integrates a NATO-standard .52-caliber 155mm cannon from Rheinmetall AG into the platform and recently led to a partnership with the Combat Capabilities Development Command Armaments Center (DEVCOM-AC).

Jim Miller, vice president of business development at BAE, told Inside Defense in July that he hopes the company spending some of its own money on the howitzer prototype will lead to its integration into the Army’s “Transforming in Contact” units as the service sets its sights on handing its soldiers heavier vehicles to tool with and provide feedback.

Under the impression enemies will soon be driving Tesla Cybertrucks, the Air Force Test Center is soliciting industry to purchase two of the electric vehicles for use as targets for live missile fire testing.

“In the operating theatre it is likely the type of vehicles used by the enemy may transition to Tesla Cybertrucks as they have been found not to receive the normal extent of damage expected upon major impact,” the Air Force wrote in a redacted justification document attached to its request for proposals. “Testing needs to mirror real world situations. The intent of the training is to prep the units for operations by simulating scenarios as closely as possible to the real world situations.”

The solicitation does not specify which adversaries might deploy Cybertrucks in the future, but it does say the testing would support U.S. Special Operations Command’s Standoff Precision Guided Munition program and associated training.

The Air Force is also asking to buy 31 other vehicles to pad its testing fleet, including a variation of sedans, bongo trucks, pickup trucks and SUVs, in addition to the pair of Cybertrucks requested. The cars do not need to run, but their wheels do need to be able to roll. Other requirements for the vehicles include:

• Little to no damage to its frame.
• Intact body, glass and mirrors.
• Drained of all fluids prior to delivery.
• Removed batteries.

Tesla, which is owned by President Trump’s former adviser Elon Musk, is the only manufacturer specifically identified as a sole-source provider under the solicitation.

“On 13 February 2025, market research was conducted to assess the competition for the Tesla Cybertruck by evaluating its design, materials, impact resistance and innovative technologies. The study revealed that the Cybertruck's aggressively angular and futuristic design, paired with its unpainted stainless steel exoskeleton, sets it apart from competitors typically using painted steel or aluminum bodies,” according to the solicitation document published yesterday.

“Additionally, its 48V electrical architecture provides superior power and efficiency, a feature that rivals are only beginning to develop. Extensive internet searches and industry outreach by [redacted] found no vehicles with features comparable to those of the Cybertruck,” it continued.

The company has touted the exterior of its vehicle as bullet resistant, although critics question the validity of that claim.

Once a contract is awarded, the vehicles should be sent to White Sands Missile Range, NM within 60 days.

This Wednesday INSIDER Daily Digest has news on a major international naval exercise in Norfolk, VA along with coverage of the possibility of an independent Cyber Force within the Defense Department and more.

Inside Defense is in Norfolk, VA this week, covering a big international naval exercise:

LSE 2025 involves allies and partners, more LVC training

NORFOLK, VA -- This year's Large Scale Exercise 2025 is living up to its name, taking place across 22 time zones with seven U.S. numbered fleets, six component commands, 880 sailors and new involvement from allies and partners -- all in little over a week.

Our Inside Cybersecurity colleagues have a story on an independent Cyber Force within the Defense Department:

Think tanks launch commission to guide DOD creation of Cyber Force

Two think tanks have created a commission to charter a path for an independent cybersecurity service within the Defense Department, citing growing support for the long-debated idea amid stakeholder concerns about the military's current cyber operational readiness.

An Army notice issued this week expands on a bill introduced last week in the Senate, which would require the defense secretary to establish a program that enables the rapid development, testing and scalable manufacture of sUAS:

Army wants to use Red River for development, testing of small drones

The Army is interested in using Red River Army Depot near Texarkana, TX to manufacture, develop and test small unmanned systems, according to an Aug. 4 solicitation.

Amy Henninger, nominated to serve as director of operational test and evaluation, testified last week before the Senate Armed Services Committee:

DOT&E nominee plans to take office in new direction as drastic cuts loom

The Defense Department's independent testing office could see a major overhaul if President Trump's pick to lead it is confirmed by the Senate.

Document: Henninger, Powers, Denton, Kohlmann nominations testimony

Army missile procurement programs such as the Patriot Advanced Capability-3 Missile Segment Enhancement, the Precision Strike Missile and Guided Multiple Launch Rocket System are slated to get significant funding plus-ups in the Senate version of the fiscal year 2026 defense spending bill:

Senate appropriators want to add $2B for PAC-3 MSE procurement

The Senate Appropriations Committee intends to add more than $2 billion in procurement funding for the Patriot Advanced Capability-3 Missile Segment Enhancement in its fiscal year 2026 defense spending bill.

The Defense Department’s watchdog will be evaluating the effectiveness of the Defense Warning Network in supporting U.S. Indo-Pacific Command, according to a letter sent to DOD officials yesterday.

The inspector general’s office will look at whether the DWN is able to assist INDOPACOM in “meeting its warning intelligence requirements,” wrote Randolph Stone, assistant inspector general for evaluations of space, intelligence, engineering and oversight.

DWN was created through a December 2013 directive from then-Deputy Defense Secretary Ash Carter to package defense intelligence in a way to provide the “earliest possible awareness of potential threats, vulnerabilities and opportunities that may emerge from any circumstance.”

Stone’s letter notes the office may revise the evaluation’s objectives as work continues or through suggestions from management.

A bipartisan group of senators formally introduced a new bill today that would protect the workforce at America’s four public shipyards from hiring freezes and mass layoffs -- a move that follows workforce reductions at-large across the Defense Department and other sectors.

Sens. Jeanne Shaheen (D-NH), Susan Collins (R-ME), Maggie Hassan (D-NH) and Angus King (I-ME) are behind the “Protecting Public Naval Shipyards Act,” brought forth before the Senate commenced its August recess last week and formally announced today.

“Our commitment to our national security relies on continued, sustainable investments in our shipyard workforce -- not a reckless hiring freeze,” King said in a news release. “Portsmouth Naval Shipyard plays a critical role in keeping our country safe, but there has been a lack of follow-through on the unprovoked employment pauses and mass layoffs there, so we are elevating this issue to legislation in order to maintain our nation’s safety and security, as well as the livelihoods of the men and women who power the shipyard.”

Advocating for the shipyard workforce is not new for these senators, and Shaheen and Collins directly called on the Navy and Office of Personnel Management to exempt public shipyards from cuts in a February letter, after the Pentagon announced plans to cut its civilian workforce by between 5% and 8%. In a hearing that same month, Shaheen said Portsmouth Naval Shipyard -- located in Kittery, ME -- must increase its workforce by 550 personnel annually to keep up with submarine repair work.

In March, a defense official confirmed to Inside Defense that federal civilian employees working in shipyard maintenance facilities and depots are exempt from the Trump administration’s federal layoffs -- layoffs that had already begun for other areas of the Navy’s civilian workforce.

Vice Chief of Naval Operations James Kilby also told lawmakers in March that public shipyard workers and civilian mariners at Military Sealift Command were exempt from the service-wide hiring freeze.

“We are trying to shape this in a manner that allows us to continue the most important work as we work through guidance from the administration,” Kilby told Sen. Mazie Hirono (D-HI) during a hearing on Defense Department readiness.

Despite these various assurances, lawmakers stated today they want further confirmation these workers will be protected.

“Our shipyard workforce represents an essential component of our national defense and preparedness -- they should have never been subjected to this administration’s ill-considered hiring freezes,” Shaheen stated. “The Portsmouth Naval Shipyard workforce is supposed to be exempt from the hiring freeze, but there continues to be issues with implementation. Our bipartisan bill enshrines that exemption in federal law and ensures that no public shipyard is subjected to such chaos and uncertainty in the future, allowing them to focus instead on the vital role they play in our national security.”

The Defense Department awarded Nebraska-based Elk Creek Resources Corp. (ECRC) $10 million to develop the first U.S. polymetallic deposit targeting near-term production for critical minerals including scandium, niobium and titanium, DOD announced today.

“Geological scarcity and limited production infrastructure drive scandium industrial shortages,” Vic Ramdass, acting assistant secretary of defense for industrial base policy, said. “Establishing a vertically integrated domestic supply chain for scandium alloy production enables multiple avenues for innovation in defense aerospace.”

The award -- granted via Title III of the Defense Production Act -- will allow ECRC to finish its feasibility study-level engineering, perform additional reserve drilling and update cost estimates for its Elk Creek Critical Minerals Project, DOD said.

That project will allow ECRC to integrate aluminum-scandium alloys into aerospace platforms via a defense prime contractor. Scandium alloys have begun replacing titanium alloy and aluminum alloy components in DOD systems since they are more lightweight and high-strength, Ramdass said.

Scandium has applications in DOD systems including advanced propulsion, next-generation energy systems, hypersonic weapon systems and aircraft components, DOD said.

The news comes as the Chinese Commerce Ministry continues to ramp up restrictions on exports of critical minerals vital to defense applications, prompting the Trump administration to issue an executive order in March aimed at accelerating domestic mineral production.

If successful, the Elk Creek project will make ECRC -- a NioCorp Developments Ltd. subsidiary -- one of the first scandium producers in the U.S., according to DOD.

The ECRC investment marks the latest of 10 awards from the DPA Purchases Office totaling more than $336 million since the beginning of fiscal year 2025, DOD said.

This Monday INSIDER Daily Digest has news on several air-to-air and air-to-ground missile programs along with purchases of Joint Light Tactical Vehicles and humvees.

Lockheed Martin and RTX are getting $7.8 billion in contracts for AGM-158C Long Range Anti-Ship Missiles and AGM-158B Joint Air-to-Surface Standoff Missiles as well as AIM-120 Advanced Medium Range Air-to-Air Missiles:

Air Force awards billions for AMRAAM, JASSM and LRASM

The Air Force has awarded missile makers Raytheon and Lockheed Martin $3.5 billion and about $4.3 billion, respectively, to boost deliveries of the vendors' advanced missile products, according to a July 31 Pentagon announcement.

More missile news:

Navy freezing AARGM-ER production plans after test failure, seeks to divert funds

The Navy is freezing immediate production plans for its next-generation anti-radar missile following a recent test failure, opening the door for the Pentagon to redirect more than $200 million in previously approved funding to other military priorities.

Despite a decision to halt future humvee purchases, the Army is planning to buy 545 more vehicles this year:

Army buys 545 humvees following procurement cancellation

The Army is spending $127 million on 545 more humvees three months after Defense Secretary Pete Hegseth ordered a stop on future buys of the vehicle under the Army Transformation Initiative.

For more than a year, senior Army leaders have heavily emphasized the need for more funding flexibility within the budget to more easily move money around:

Senate appropriators curtailing some of Army's agile funding strategy

The Senate Appropriations Committee wants the Army to scale back its agile portfolio funding strategy for fiscal year 2026, lawmakers wrote in their version of the defense spending bill.

Senators want the Marine Corps to submit a revised Joint Light Tactical Vehicle acquisition strategy:

Appropriators want a reworked JLTV plan from Marine Corps

Senate appropriators want the Marine Corps commandant to retool the service's acquisition strategy for the Joint Light Tactical Vehicle program after the Army cancelled the vehicle in May without giving the Marines a heads up.