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The INSIDER daily digest -- Jan. 29, 2025
By John Liang
January 29, 2025 at 2:21 PM

This Wednesday INSIDER Daily Digest has news on the Army facing "tough choices about the budget" in the coming years, plus coverage of the West 2025 conference in San Diego and more.

Army Chief of Staff Gen. Randy George says the service is "looking at everything that we do" when it comes to "return on investment in terms of lethality and readiness inside of our formation and then taking care of our soldiers":

'Hard choices' ahead for Army when it comes to budget, service chief says

The Army will need to make "tough choices about the budget" in the next year, the service's top uniformed officer emphasized today at an event hosted by the Association of the United States Army.

Prior to its recission today, the Pentagon had been reviewing an OMB directive that called for a temporary halt on certain spending:

DOD reviewing new spending pause ordered by Trump administration

The Defense Department, amid broad confusion across the federal government, is reviewing a White House Office of Management and Budget directive that calls on all federal agencies to temporarily halt and review any "grants, loans or other financial assistance" that don't align with new executive orders from President Trump targeting "Marxist equity, transgenderism and green new deal social engineering policies."

Coverage of this year's AFCEA/USNI West conference in San Diego:

Implications of 2027 deadline 'crystal clear' to the force, Navy official says

SAN DIEGO -- The expansion of manned-unmanned teaming, investment in the submarine industrial base and completion of on-time maintenance availabilities are all actions needed to meet the Chief of Naval Operations' goal of an 80% combat surge-ready force, according to naval officials.

Replicator could be key to bolstering surface firepower, Pacific Fleet commander says

SAN DIEGO -- The Pentagon's Replicator initiative could provide a boost to Pacific Fleet's firepower, according to commander Adm. Stephen Koehler, who today said the rapid fielding effort could fill gaps that will appear as manned vessels equipped with vertical launch cells are retired in the coming years.

President Trump has issued an executive order titled "The Iron Dome for America" that orders the Pentagon to draft a blueprint for a domestic air- and missile-defense architecture by the end of March with options to shape the administration’s fiscal year 2026 budget request:

Trump directs next-gen domestic air defense; Pentagon to re-imagine drone, air, missile shield

President Trump has declared the need for a new national defense system to control domestic airspace and defend the U.S. against missile and drone attack -- a move that carries seismic budget, policy and organizational implications to say nothing of technical feasibility questions and the politically fraught matter of exactly what to protect and leave undefended.

Document: Trump's Iron Dome executive order

The first Collaborative Combat Aircraft increment is being envisioned as missile trucks that would accompany exquisite aircraft like the F-35 Joint Strike Fighter, B-21 Raider and Next Generation Air Dominance platform into battle in sizable groups, officials have said:

Kunkel: Wargaming proves CCAs will bring 'unstoppable capability' to air fight

Exercises intended to simulate teaming among fighter drones and manned jets are already confirming the pairing to be a "completely natural" solution to bring "unstoppable capability" to an air-to-air fight, according to Maj. Gen. Joseph Kunkel, Air Force director of force design, integration and wargaming.

Lockheed Martin executives discussed the company's latest earnings this week:

Financial effects of F-35 TR-3 delays may bleed into 2026, Lockheed exec says

Lockheed Martin may be feeling the financial hit of continued delays to Technology Refresh 3 for the F-35 Joint Strike Fighter into 2026, executives said during the company's year-end earnings call.

White House rescinds controversial spending pause memo
By Tony Bertuca
January 29, 2025 at 1:46 PM

The White House Office of Management and Budget has rescinded a controversial memo that ordered all federal agencies to halt and review spending on grants, loans or other forms of financial assistance following a swirl of confusion about which programs were included or exempt.

The rescinded memo, “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance,” directed federal agencies to comb their budgets to root out "Marxist equity, transgenderism and green new deal social engineering policies."

The Pentagon, meanwhile, released a statement from an unnamed senior defense official last night saying the department was reviewing the OMB memo, noting that some contracts or activities “may be paused” if they were misaligned with the White House’s guidance.

It is unclear how DOD will proceed now that the memo has been rescinded and the Pentagon did not immediately respond to a request for comment.

Senate Appropriations Committee Chairwoman Susan Collins (R-ME) released a statement criticizing the White House.

“I am pleased that OMB is rescinding the memo imposing sweeping pauses in federal programs,” she said. “While it is not unusual for incoming administrations to review federal programs and policies, this memo was overreaching and created unnecessary confusion and consternation.”

The original memo has been challenged in court, with a federal judge issuing a stay on the guidance.

However, White House Press Secretary Karoline Leavitt said on X that the federal funding freeze would continue as directed, though the memo directing it was being rescinded.

"This is NOT a rescission of the federal funding freeze,” she wrote. “It is simply a rescission of the OMB memo. Why? To end any confusion created by the court's injunction. The President's EO's on federal funding remain in full force and effect, and will be rigorously implemented.”

DIU evaluating industry bids to deliver nuclear power source for military installations
By Nick Wilson
January 28, 2025 at 7:21 PM

SAN DIEGO -- The Defense Innovation Unit is in the process of evaluating vendor proposals to deliver a nuclear power source for military installations, according to DIU energy portfolio Director Andrew Higier.

The “nuclear power for installation project” is an ongoing effort enabled by a recently heightened focus on nuclear technology by industry, Higier said today at the West 2025 conference.

“It's a project that, if you would have asked me just a few years ago, ‘Is DIU going to do a nuclear project?’ I would have said, ‘No,’ because the private sector is not doing that,” he said. “But here we are a few years later, and there's dozens of companies and even more [venture capitalists] investing in that technology, and because of that we were able to quickly start a nuclear project.”

DIU posted two solicitations in June 2024 seeking commercial solutions to address Navy and Army energy resiliency needs.

The Army sought to “to prototype on-site micro-reactor nuclear power plant(s) to address its energy resilience needs through the Advanced Nuclear Power for Installations (ANPI) program to provide electricity generation and distribution,” according to its notice.

Such technology “didn’t exist" at the time, Higier added. "Thanks to the private sector, it does exist now, or it will soon. And so we put out a solicitation, and that's undergoing selection right now.”

The INSIDER daily digest -- Jan. 28, 2025
By John Liang
January 28, 2025 at 1:42 PM

This Tuesday INSIDER Daily Digest has news on Boeing's latest quarterly earnings, plus Air Force readiness and modernization challenges and more.

We start off with coverage of Boeing's latest quarterly earnings call:

Boeing, USAF in talks to accelerate new Air Force One deliveries

The Air Force and aerospace prime Boeing are in "active discussions" to make needed changes to the VC-25B program, the eventual replacement for presidential aircraft Air Force One, company CEO Kelly Ortberg told investors Tuesday.

Air Force officials warned last year the fiscal year 2026 request would be more repressed than prior budgets, foreshadowing tough choices ahead regarding the future force structure, sustainment and operations:

Budget-driven 'conundrum' causing both readiness and modernization to fall flat, former USAF official says

The Air Force can't afford to go big on either modernization or readiness at current funding levels, creating a stalemate in which both are already being suboptimized, said Ravi Chaudhary, the now former Air Force assistant secretary for energy, installations and environment.

Coverage of President Trump's firing of the Defense Department inspector general over the past weekend:

New acting DOD inspector general named after Trump firings

A new acting Defense Department inspector general has been named to temporarily fill the place of Robert Storch, who was among more than a dozen IGs fired over the weekend by President Trump.

Last but by no means least, the latest CMMC news from our colleagues at Inside Cybersecurity:

CMMC assessment provider finds significant gap in contractor preparation for Pentagon cyber certification program

Fifty-eight percent of defense contractors are unprepared to meet the requirements for the Pentagon's Cybersecurity Maturity Model Certification program, according to a survey conducted by the Defense Department initiative's first authorized third-party assessment organization.

AIA seeks clarification on segmentation in NIST advanced persistent threats publication used by CMMC program

The Aerospace Industries Association is encouraging the National Institute of Standards and Technology to provide clarity on segmenting different components of an IT system, in a draft publication on advanced persistent threats used to establish requirements for the Pentagon's Cybersecurity Maturity Model Certification program.

Army halts contracts and solicitations for review
By Dan Schere
January 28, 2025 at 1:19 PM

The Army is "conducting a review of existing solicitations and awards of contracts," a service spokesperson confirmed today to Inside Defense.

Bloomberg first reported Monday that newly-confirmed Defense Secretary Pete Hegseth halted all new Army contracts and solicitations for new programs. Additionally, Breaking Defense reported today that according to multiple industry and military sources, an email provided “direction from the secretary of the Army’s office” to pause all contracting or other transaction awards, along with other types of solicitations.

In response to questions from Inside Defense about the existence of such a directive, service spokeswoman Ellen Lovett wrote that “Army contracting activities continue to move forward.”

“As is customary, the Army is currently conducting a review of existing solicitations and awards of contracts to ensure that our programs are aligned with the incoming leadership’s policies and directives. We remain committed to transparency and being responsible stewards of taxpayer dollars,” she wrote.

Watch Inside Defense for more reporting on this developing story.

HII closes on acquisition of South Carolina-based manufacturing facility assets
By Abby Shepherd
January 28, 2025 at 5:00 AM

Shipbuilder HII's acquisition of the metal fabrication facilities and equipment of a South Carolina-based company has now closed, HII announced yesterday.

Now known as Newport News Shipbuilding-Charleston Operations, the acquisition of assets will allow HII to expand operations while maintaining more than 99% of the previous workforce -- approximately 500 employees. Newport News Shipbuilding Vice President Matt Needy will manage the site.

“HII is committed to going where the labor is to increase shipbuilding capacity and increase throughput for our national security customers,” HII President and CEO Chris Kastner said in a statement. “This lets us efficiently add trained talent and state-of-the-art manufacturing capabilities to the urgent job of building ships, making it a unique opportunity to immediately accelerate throughput at Newport News Shipbuilding in support of the Navy and AUKUS.”

The acquisition was announced last month and will prioritize the construction of submarine modules first, followed by aircraft carrier modules, Newport News Shipbuilding President Jennifer Boykin said at the time.

The South Carolina-based facility includes 480,000 square feet of additional manufacturing space, Boykin added.

“The expansion of our nation’s largest military shipbuilder in South Carolina underscores the pivotal role our state plays in strengthening America’s national security,” Sen. Tim Scott (R-SC) said in a statement yesterday. “The dedicated shipbuilders in the Charleston area are part of a highly skilled workforce that will propel our nation forward. This innovation and modernization in our defense industrial base will create jobs and draw resources to our state’s already robust Navy presence.”

General Electric, Pratt & Whitney awarded up to $3.5 billion each for NGAP prototyping
By Vanessa Montalbano
January 27, 2025 at 6:18 PM

The Air Force's Next Generation Adaptive Propulsion program is advancing into the prototyping phase, with General Electric and Pratt & Whitney both receiving awards of up to $3.5 billion to carry-out existing contracts, the Pentagon announced Monday evening.

The indefinite-delivery, indefinite-quantity modification contract reduces the total number of vendors proceeding with NGAP to two, cutting Boeing, Lockheed Martin and Northrop Grumman from the competition.

“The work includes design, analysis, rig testing, prototype engine build and testing and weapon system integration,” according to the announcement. “The contract modification is for the execution of the prototype phase of the NGAP program and is focused on delivering a state-of-the-art propulsion system with a flexible architecture that can be tailored for future combat aircraft operating across various mission threads; and digitally transforming the propulsion industrial base.”

No funds are being released to either company at the time of the award, the Pentagon stated.

In August of 2022, GE Aerospace, Pratt & Whitney, Boeing, Lockheed Martin and Northrop Grumman were each awarded $975 million to begin NGAP technology-maturation and risk-reduction services. Today’s announcement brings the cumulative contract value for each up to $3.5 billion and dwindles the vendor options down to just GE and Pratt.

The defense primes will have until July 2032 to execute their platform-agnostic designs, with the Air Force Lifecycle Management Center as the contracting authority.

The NGAP program was in part born out of the now-obsolete Adaptive Engine Transition Program, which was intended to find a design to re-engine the F-35 Joint Strike Fighter with an alternative that required less energy, had greater thrust and could fly for longer periods.

Pratt & Whitney and General Electric were the two top contenders for the AETP competition as well.

The INSIDER daily digest -- Jan. 27, 2025
By John Liang
January 27, 2025 at 1:59 PM

This Monday INSIDER Daily Digest has news on the Space Force seeking contractors to build more satellites, the debate over the future of Navy aircraft carriers and more.

The Space Development Agency is seeking contractors to build a bunch of satellites:

SDA releases Tranche 3 solicitation draft, seeks input on optical terminal standard

The Space Development Agency released a draft request for proposals for the next set of Proliferated Warfighter Space Architecture low-Earth orbit satellites last week as well as a call for feedback on instating a new standard for optical communications terminals.

Document: SDA's T3TLu draft RFP

Document: SDA's Tranche 3 OCT Standard RFI

Inside Defense recently chatted with the Navy's No. 2 uniformed officer, who spoke candidly about the role of unmanned technology and outlined critical operational challenges that must be addressed before considering alternatives to the service's aircraft carrier fleet:

VCNO welcomes debate over future of aircraft carrier, cites need to think deeply about alternatives

Vice Chief of Naval Operations Adm. James Kilby pushed back against skepticism about the relevance of aircraft carriers in future warfare, emphasizing the need for pragmatic evaluation over sweeping changes.

A new Defense Department inspector general's report determines "whether Army contracting officials properly managed undefinitized contract actions (UCAs) awarded to assist Ukraine by obligating funds and definitizing actions within the required limits and adjusting profit for costs incurred, or properly waiving the requirements in accordance with Federal and DOD policies":

Audit finds Army mismanaged undefinitized contracts to Ukraine

The Army failed to properly oversee certain contracts for Ukraine aid, causing the Defense Department to take on most of the incurred costs and risk paying even more, a recent Pentagon inspector general audit found.

Document: DOD IG audit of Army's management of UCAs awarded for Ukraine assistance

A DOD official was asked last week if the United States has the energy necessary to support $500 billion worth of new AI and computer infrastructure:

DOD official says U.S. can't power new 'Stargate' AI investment

The United States doesn't have the energy to support the new joint venture proposing investments of up to $500 billion worth of infrastructure tied to artificial intelligence, according to Jeff Waksman of the Defense Department's Strategic Capabilities Office.

The Army recently revealed the existence of Task Force Strategic Integrated Kinetic Effects (STRIKE):

Army's TF STRIKE to test LRHW and MRC's ability to dis-integrate adversary defenses

The Army is looking to begin as soon as 2026 to start coordinated testing of its newest deep strike systems to assess the ability of the Long-Range Hypersonic Weapon and the Mid-Range Capability to dis-integrate complex defense systems in the opening salvos of a major fight against an adversary such as China.

Mack Defense to supply Army with 103 dump trucks
By Dominic Minadeo
January 27, 2025 at 12:18 PM

The Army ordered 103 more Mack Defense heavy dump trucks last Thursday as part of a $296 million contract from 2018, according to a Mack Defense press release.

The Army had already bought 446 trucks as part of the seven-year contract, which allows up to 683. The new order, first reported by Shephard News, specifies the Army is buying 74 M917A3 HDTs using presidential budget funds and the Army National Guard is securing 29 of its own. The trucks help maintain infrastructure at places like airfields, roadways and landing strips, according to the release.

“Our military continues to field Mack HDTs into various operations around the world, so these vehicles have been put to the test and continue to meet demanding requirements,” Dave Hartzell, president of Mack Defense, said in a statement. “For that reason, the Army, Army Reserve and the Army National Guard continue to invest in these modern HDTs to ensure our soldiers have the right truck with the highest level of capabilities needed to ensure mission success.”

The HDTs are based on the commercial model the vendor produces, the Mack Granite model, with a few exceptions for required features like “heavier-duty rear axles,” all-wheel drive, more suspension and others, according to the release. The trucks also have “user-friendly” control interfaces, Anti-lock Braking Systems and other active safety systems.

HDT production began in 2021 in Allentown, PA, after standing up a $6.5 million production line at the Mack Experience Center. The line produces the M917A3 variants required for the contract, according to the release.

The week ahead
By Tony Bertuca
January 27, 2025 at 5:00 AM

A major Navy conference is taking place in San Diego, CA, this week and senators are scheduled to hold a nomination hearing for the Army secretary.

Monday

The Nuclear Deterrence Summit runs through Wednesday.

Tuesday

Senior Navy and Marine Corps leaders speak at the West 2025 Conference in San Diego, CA.

The Senate Armed Services Committee holds a hearing on defense innovation and acquisition.

Thursday

The Senate Armed Services Committee holds a hearing to consider the nomination of Daniel Driscoll for Army secretary.

The Center for Strategic and International Studies hosts a discussion on U.S. Africa Command.

Hegseth confirmed in historic tie-breaking vote
By Tony Bertuca
January 24, 2025 at 10:09 PM

Former Fox News host Pete Hegseth has been confirmed as defense secretary by a 51-50 vote, with Vice President JD Vance casting a tie-breaking vote that was needed when three Republicans, including Sen. Mitch McConnell (R-KY) voted against him.

Sens. Susan Collins (R-ME) and Lisa Murkowski (R-AK) also voted against Hegseth, joining the chamber’s Democrats in opposition.

McConnell, the former Senate minority leader who now chairs the Senate Appropriations defense subcommittee, released a statement wishing Hegseth the best of luck as defense secretary but also said the nominee, who is an Army National Guard veteran, lacked the experience to garner his vote.

“Effective management of nearly 3 million military and civilian personnel, an annual budget of nearly $1 trillion and alliances and partnerships around the world is a daily test with staggering consequences for the security of the American people and our global interests,” he said. “Mr. Hegseth has failed, as yet, to demonstrate that he will pass this test.”

McConnell also said Hegseth during his confirmation hearing failed “to articulate in any detail a strategic vision for dealing with the gravest long-term threat emanating from” China and provided “no substantial observations on how to defend Taiwan or the Philippines against a Chinese attack, or even whether he believes the United States should do so.”

The tight vote puts Hegseth in the job of defense secretary by the narrowest margin in modern history. The nominees for the post are typically approved by bipartisan consensus.

The closest comparison to Hegseth’s vote is that of Chuck Hagel, who was confirmed 58-41. Lloyd Austin, meanwhile, was confirmed by 93 votes, Mark Esper with 90 and Jim Mattis with 98.

Hegseth has come under fire for a variety of misconduct allegations, including sexual assault, excessive drinking, financial mismanagement and -- most recently -- domestic abuse. Hegseth has denied all the allegations.

Senate Armed Services Committee Chairman Roger Wicker (R-MS) released a statement touting his support of Hegseth.

“Peace through strength is back under President Trump and Pete Hegseth,” Wicker said. “Through my many meetings with Mr. Hegseth and his hearing performance, I have found him to be a true patriot, a top-shelf communicator and a prospective change agent who will bring much-needed reform to the Pentagon.”

Sen. Jack Reed (D-RI), the committee’s ranking member, released a statement vowing to watch Hegseth “like a hawk.”

“This is who President Trump handpicked and 50 Republicans supported, knowing full well of his past misconduct,” Reed said. “Now he is assuming one of the most consequential jobs in the world, and I fervently hope he is up to the task and will be a responsible, effective leader at the Pentagon.”

A nominee from Trump’s previous term, Betsy DeVos for education secretary, also needed a vice presidential tie-breaking vote, making her in 2017 the first cabinet nominee to ever require one. Hegseth is now the second.

Senate defense panel announces subcommittee rosters
By Tony Bertuca
January 24, 2025 at 5:17 PM

Republicans and Democrats on the Senate Armed Services Committee have announced subcommittee leadership and members.

Airland (13 members)

Chairman: Kevin Cramer, (R-ND)

Ranking Member: Mark Kelly (D-AZ)

Subcommittee Members: Deb Fischer (R-NE), Tom Cotton (R-AR), Dan Sullivan (R-AK), Markwayne Mullin (R-OK), Ted Budd (R-NC), Eric Schmitt, (R-MO), Richard Blumenthal, (D-CT), Angus King, (I-ME), Gary Peters (D-MI), Tammy Duckworth (D-IL), Elissa Slotkin (D-MI).

Cybersecurity (Nine members)

Chairman: Mike Rounds (R-SD)

Ranking Member: Jacky Rosen (D-NV)

Subcommittee Members: Tom Cotton (R-AR), Joni Ernst (R-IA), Ted Budd (R-NC), Eric Schmitt, (R-MO), Kirsten Gillibrand (D-N), Gary Peters (D-MI), Elissa Slotkin (D-MI).

Emerging Threats and Capabilities (15 members)

Chairwoman: Joni Ernst (R-IA)

Ranking Member: Elissa Slotkin (D-MI)

Subcommittee Members: Tom Cotton (R-AR), Mike Rounds, (R-SD), Kevin Cramer (R-ND), Markwayne Mullin (R-OK), Ted Budd (R-NC), Eric Schmitt (R-MO), Tim Sheehy (R-MT), Jeanne Shaheen (D NH), Kirsten Gillibrand (D-NY), Tim Kaine (D-VA), Gary Peters (D-MI), Jacky Rosen (D-NV), Mark Kelly (D-AZ).

Personnel (Nine members)

Chairman: Tommy Tuberville (R-AL)

Ranking Member: Elizabeth Warren (D-MA)

Subcommittee Members: Joni Ernst (R-IA), Rick Scott (R-FL), Ted Budd (R-(NC), Jim Banks (R-IN), Richard Blumenthal (D-CT), Mazie Hirono (D-HI), Tammy Duckworth (D-IL).

Readiness and Management Support (11 members)

Chairman: Dan Sullivan (R-AK)

Ranking Member: Mazie Hirono (D-HI)

Subcommittee Members: Deb Fischer (R-NE), Kevin Cramer (R-ND), Rick Scott (R-FL), Eric Schmitt (R-MO), Tim Sheehy (R-MT), Jeanne Shaheen (D-NH), Tim Kaine (D-VA), Elizabeth Warren (D-MA), Tammy Duckworth (D-IL)

Seapower (11 members)

Chairman: Rick Scott (R-FL)

Ranking Member: Tim Kaine (D-VA)

Subcommittee Members: Dan Sullivan (R-AK), Tommy Tuberville (R-AL), Markwayne Mullin (R-OK), Jim Banks (R-IN), Tim Sheehy (R-MT), Jeanne Shaheen (D-NH), Richard Blumenthal (D-CT), Mazie Hirono, (D-HI), Angus King (I-ME).

Strategic Forces (11 members)

Chairwoman: Deb Fischer (R-NE)

Ranking Member: Angus King (I-ME)

Subcommittee Members: Tom Cotton (R-AR), Mike Rounds (R-SD), Kevin Cramer (R-ND), Tommy Tuberville (R-AL), Jim Banks (R-IN), Kirsten Gillibrand (D-NY), Elizabeth Warren (D-MA), Sen. Jacky Rosen (D-NV), Sen. Mark Kelly (D-AZ).

The INSIDER daily digest -- Jan. 24, 2025
By John Liang
January 24, 2025 at 3:11 PM

This Friday INSIDER Daily Digest has news on Army oversight of certain contracts for Ukraine aid, artificial intelligence and more.

A new Defense Department inspector general's report determines "whether Army contracting officials properly managed undefinitized contract actions (UCAs) awarded to assist Ukraine by obligating funds and definitizing actions within the required limits and adjusting profit for costs incurred, or properly waiving the requirements in accordance with Federal and DOD policies":

Audit finds Army mismanaged undefinitized contracts to Ukraine

The Army failed to properly oversee certain contracts for Ukraine aid, causing the Defense Department to take on most of the incurred costs and risk paying even more, a recent Pentagon inspector general audit found.

Document: DOD IG audit of Army's management of UCAs awarded for Ukraine assistance

A DOD official was asked this week if the United States has the energy necessary to support $500 billion worth of new AI and computer infrastructure:

DOD official says U.S. can't power new 'Stargate' AI investment

The United States doesn't have the energy to support the new joint venture proposing investments of up to $500 billion worth of infrastructure tied to artificial intelligence, Jeff Waksman of the Defense Department's Strategic Capabilities Office said Thursday.

The Army this week revealed the existence of Task Force Strategic Integrated Kinetic Effects (STRIKE):

Army's TF STRIKE to test LRHW and MRC's ability to dis-integrate adversary defenses

The Army is looking to begin as soon as 2026 to start coordinated testing of its newest deep strike systems to assess the ability of the Long-Range Hypersonic Weapon and the Mid-Range Capability to dis-integrate complex defense systems in the opening salvos of a major fight against an adversary such as China.

The Defense Science Board this week released the executive summary an October 2024 report on "Commercial Provision of Navigation Signals for Operational Use":

DSB says Pentagon needs commercial PNT purchasing function

Although there are no existing commercial satellite navigation services that meet the Defense Department's position, navigation and timing needs, a Defense Science Board task force recommends in its latest report that a purchasing function be established to position DOD as an agile adopter when such solutions are available.

Document: DSB executive summary of commercial provision of navigation signals for operational use study

A recent Army request for information asks vendors to describe how their solution "enables" human-machine integration:

Army issues RFI for IVAS Next

The Army has issued a request for information seeking industry capabilities to develop and manufacture the next planned variant of the Integrated Visual Augmentation System, known as IVAS Next.

Boeing defense programs book a $1.7 billion loss in fourth quarter
By Vanessa Montalbano
January 23, 2025 at 6:32 PM

Boeing's Defense, Space & Security division is again anticipating negative charges in the billions as the company continues to reel from last year's International Association of Machinists work stoppage and persistent developmental delays on its firm, fixed-price programs.

"Although we face near-term challenges, we took important steps to stabilize our business during the quarter including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet," Kelly Ortberg, Boeing president and chief executive officer, said in a statement today announcing the company’s pre-tax, fourth-quarter results.

Boeing’s defense division is expected to recognize a greater loss than its commercial business, with a total $1.7 billion in the red on the troubled KC-46A Pegasus tankers, T-7A Red Hawk training jets, VC-25B Air Force One planes, MQ-25 Stingray uncrewed aircraft and Starliner Commercial Crew spacecraft. The charge brings Boeing defense business to an operating margin of 41.9% in the fourth quarter, according to the company.

The Pegasus alone hemorrhaged $800 million due to “higher estimated manufacturing costs, including impacts of the IAM work stoppage and agreement,” Boeing noted in a news release. In July, that aircraft tacked on another category 1 deficiency to its mix of significant or possibly deadly issues -- bringing the total to seven.

The T-7 contract, meanwhile, saw an additional $700 million in part because of “higher estimated costs on production lots in 2026 and beyond,” Boeing said. Former Air Force acquisition chief Andrew Hunter last week told Inside Defense the service is again shifting its development and procurement plans for the new training jet by pushing milestone C back one year to 2026 to lock in initial operational capability by 2027.

As part of the changes, the Air Force is also offering Boeing as much as $250 million that the company can earn over time to address long-standing delivery delays and a need for updated capabilities not already listed in the original contract, including extended range, Hunter said.

The new charges come after the aerospace giant’s defense unit in the third quarter logged a $2 billion pre-tax loss, prompting Ortberg at the time to call for the company to pivot back to prior success via better discipline in its "tough contracts" and a focus on risk management in future ones.

Boeing is scheduled to report its quarterly earnings on Jan. 28.

Bloomberg and others exit DOD advisory boards as Trump returns to White House
By Tony Bertuca
January 23, 2025 at 6:26 PM

Former New York City Mayor Mike Bloomberg and several others have resigned from influential defense advisory boards amid the return of President Trump, who in the waning days of his first term used the bodies to reward loyalists and exile perceived political opponents.

Bloomberg, long a political foe of Trump, has resigned as head of the Defense Innovation Board, along with former House Armed Services Committee Chairman Mac Thornberry, internet entrepreneur Reid Hoffman and former Chairman of the Joint Chiefs of Staff Adm. Mike Mullen.

Hoffman resigned Dec. 1. Thornberry resigned Jan. 13, while Bloomberg and Mullen resigned Jan. 14 and Jan. 17, respectively.

Six members remain on the DIB and no new members have been appointed at this time.

Meanwhile, the Pentagon also said Defense Business Board Chairwoman and former Air Force Secretary Deborah James resigned Jan. 20, along with former U.S. Central Command chief Gen. Joeseph Votel as well as board members Sally Donnelly, Oscar Munoz and Safroadu Yeboah-Amankwah. Patricia Zarodkiewicz resigned from the board Dec. 31.

The Pentagon said board vice chair Linnie Haynesworth would serve as acting chairwoman until a successor to James is appointed.

There have been no changes in the Defense Policy Board.