The Insider

Carter on Cyber
By Christopher J. Castelli
June 12, 2013 at 4:52 PM

The Pentagon may one day create a joint organization like U.S. Special Operations Command to oversee more directly all U.S. military forces associated with cyberwarfare, Deputy Defense Secretary Ashton Carter said today.

His comments came after a member of the audience at a conference sponsored by the Center for a New American Security asked why the Defense Department had not established a new military service focused entirely on the cyber domain. "It may come to that some day," Carter replied.

U.S. Cyber Command, a sub-unified command under U.S. Strategic Command plans, coordinates and synchronizes DOD's cyber activities. But the department has stopped short of making the mission area inherently joint, Carter noted.

For now, he said, DOD has determined it must focus on attracting, maintaining and making the best use of the cyber talent it has, and using the services' existing cyber-related organizations to address the mission in the most expeditious manner possible.

Meanwhile, the head of STRATCOM had some thoughts on cyber issues today as well. From our story:

Pentagon leaders may never be satisfied with the reliability and readiness of the U.S. nuclear command and control system despite continuing efforts to identify and respond to cyber vulnerabilities, the head of U.S. Strategic Command said today.

STRATCOM is reviewing its legacy nuclear command and control system to determine if there are critical vulnerabilities that exist in the system, Gen. Robert Kehler said today, adding that the review likely will not be complete for some time and that the results may never fully satisfy DOD leaders.

"I don't know that we're ever going to be fully satisfied," Kehler said. "I think you have to have some healthy view that an adversary can be ahead of you and, I think, that there's no perfect defense, there's no perfect protection in any domain, to include cyber. So I think we have to be realistic as we go forward and understand that this is something that will be an ongoing concern for us."

Kehler said that, to date, the review has not uncovered any significant concerns. He noted that many of the issues that have arisen are related to what he called "basic network hygiene," like changing passwords on a regular basis.

"In some cases, we've discovered -- especially with some of the older systems -- that there aren't any vulnerabilities there because they don't work the way that newer systems work," Kehler said. "In some cases we've found things that are a concern, I wouldn't say they're vulnerabilities, and we're going to have to fix those. But we're not finished and it's going to take a while longer."

Finding Fakes
By Thomas Duffy
June 12, 2013 at 1:54 PM

The Defense Department is reaching out to the private sector and to any "experts and interested parties" in its pursuit of detecting counterfeit parts in the military supply chain.

In a Federal Register notice published today, DOD states it wants to open a dialogue "about the requirements for detection and avoidance of counterfeit electronic parts in DOD contracts." The department published a proposed rule to the Defense Federal Acquisition Regulation System on May 16.

A public hearing will be held on June 18 to obtain the views of industry and experts in the field, DOD said. The hearing will be held at the General Services Administration office in Washington.

The proposed rule is a partial implementation of a section of the Fiscal Year 2012 Defense Authorization Act, according to DOD:

It addresses the responsibility of DOD contractors for detecting and avoiding the use or inclusion of counterfeit electronic parts or suspect counterfeit electronic parts in items delivered to the Department. In lieu of requiring contractors to establish an entirely new and separate system for avoiding the purchase, and detecting the receipt, of counterfeit or suspect counterfeit parts, DoD plans to use contractors' existing purchasing systems and quality assurance systems.

The DFARS case will also put into practice a section of the 2012 authorization law that outlines contractor responsibility. "This provision of the law makes the costs associated with counterfeit or suspect counterfeit parts unallowable except in certain limited circumstances," DOD said.

Collins Wants Supplemental
By Christopher J. Castelli
June 11, 2013 at 6:47 PM

Sen. Susan Collins (R-ME) today urged Defense Secretary Chuck Hagel to submit a supplemental budget request to Capitol Hill to cover higher-than-expected war costs, but Hagel was noncommittal.

One supplemental “to address this issue is not going to fix this problem,” Hagel said. “The only thing that's going to fix this problem is a change . . . in the sequestration, as you have heard, I know, countless times. Now, to your specific question, we have not considered a supplemental. I have not discussed a supplemental. So if that occurs, then we will -- we would look at it, and -- but that's about as far as I can go. We just had not looked at that . . . as a possibility.”

“Well, I would encourage you to do so because although I do not support the sequestration process and believe we should be setting priorities, and I'm very worried about the detrimental impact on the Department of Defense,” Collins replied. “The fact is that is not the total cause of the shortfall in the readiness accounts. And overall, across the department, between -- well, approximately a third of the shortfall is not due to sequestration; it's due to higher than anticipated war costs. So even if we abolish sequestration today, that does not solve the problem of your needing -- legitimately needing more money to deal with the anticipated -- underestimated war costs. And so I would ask you to look at the possibility of submitting a supplemental request.”

A spokeswoman for Collins, who said the senator has raised the issue before, had no comment on what further steps, if any, she might take to advocate a supplemental request.

Chinook Contract
By Jen Judson
June 11, 2013 at 3:47 PM

The Army signed a much-anticipated $4 billion multiyear contract with Boeing to build 177 CH-47F Chinook helicopters, according to a company statement issued today.

The contract contains options that could increase the total amount to 215 Chinooks, the statement adds.

The Army had been poised to sign its second five-year contract with Boeing since last year, but was unable to do so since Congress had yet to pass a fiscal year 2013 defense budget. The passage of a continuing resolution in March that provided the Defense Department with an FY-13 budget allowed the Army and Boeing to move forward in solidifying the multiyear contract that is predicted to ultimately save the service $800 million.

Deliveries are slated to begin in 2015, the statement notes. The Army's current inventory consists of 241 F-model aircraft with a total planned procurement of 464 aircraft that include 24 to replace peacetime attrition aircraft, the statement adds.

QDR and Energy
By Christopher J. Castelli
June 10, 2013 at 3:39 PM

House authorizers are pressing Defense Secretary Chuck Hagel to ensure that the Pentagon's upcoming Quadrennial Defense Review includes energy-security assessments.

Language urging the Defense Department to address the issue is tucked in the June 7 report that accompanies the House Armed Services Committee's fiscal year 2014 defense authorization bill. “The committee believes an essential element of any defense plan is the importance of energy security as a fundamental component of the Department of Defense’s ability to project power and enable combat capability for operations,” the report states.

The FY-12 Defense Authorization Act defined energy security as “having assured access to reliable supplies of energy and the ability to protect and deliver sufficient energy to meet mission essential requirements.” The report directs Hagel to ensure that the final QDR report, due to Congress early next year, “includes details regarding the importance of, and funding necessary to achieve, energy security.”

Cost Estimate
By John Liang
June 10, 2013 at 3:04 PM

The Congressional Budget Office on Friday released a cost estimate of the fiscal year 2014 defense authorization bill marked up by the House Armed Services Committee last week:

Based on legislative language for H.R. 1960 that was provided to CBO from May 30 through June 5, CBO estimates that enacting this bill would decrease net direct spending by $26 million in 2014, $18 million over the 2014-2018 period, and $2 million over the 2014-2023 period. . . . Because the bill would affect direct spending, pay-as-you-go procedures apply.

The largest costs over that 10-year period result from a provision that would authorize special immigrant visas for certain Iraqi and Afghan allies and a provision that would increase spending from the National Defense Stockpile Transaction Fund to acquire additional materials. H.R. 1960 also would increase spending for Tricare beneficiaries whose eligibility derives from service in the Coast Guard, the National Oceanic and Atmospheric Administration, and the Uniformed Corps of the Public Health Service and for loan guarantees made by the Department of Veterans Affairs. Those costs would be offset by savings from a provision that would modify the calculation for computing the amount of the initial retirement benefit for certain military retirees.

View the CBO cost estimate here.

In related news, the House Rules Committee has released the report accompanying the FY-14 defense policy bill.

Weapons At Last
By Gabe Starosta
June 7, 2013 at 4:13 PM

The Joint Strike Fighter program this week conducted its first in-air missile release, F-35 officials announced in a statement today. The workhorse of the F-35A test aircraft fleet, a jet known as AF-1, launched a test-instrumented Advanced Medium-Range Air-to-Air Missile, or AMRAAM, on June 5, according to the statement.

The milestone is an early step into developing weapons capabilities for all three variants of the JSF jet, none of which are currently equipped to carry and operate weapons. The Marine Corps expects to be the first military service to declare initial operational capability in late 2015, at which point its F-35B aircraft will run on software Block 2B and will be able to hold and shoot limited types of weapons.

The missile was launched from the F-35's internal weapons bay over the Point Mugu Sea Test Range in California. Flight testing for the Air Force's conventional-takeoff-and-landing version of the aircraft, the F-35A, is based out of Edwards Air Force Base, CA.

"This is the first launch where the F-35 and AIM-120 [AMRAAM] demonstrated a successful launch-to-eject communications sequence and fired the rocket motor after launch -- paving the way for targeted launches later this year in support of Block 2B fleet release capability," the statement reads.

The Joint Strike Fighter is designed to carry 18,000 pounds of ordnance using 10 weapon stations, according to the release.

Up In Space
By John Liang
June 7, 2013 at 4:09 PM

The Pentagon this week released an updated joint doctrine document on space operations, which contains the following changes:

* Realigns space situational awareness as the fifth space mission area.

* Adds and defines protection and space deterrence within the space control mission area.

* Provides additional depth to the discussion of space debris and potential effects of collisions.

* Organizes space support mission area into assured access to space and satellite support operations.

* Highlights the links between defensive space control and space deterrence.

* Captures the role of non-Department of Defense (DOD) capabilities with regard to mitigation as well as options for the joint force commander.

* Refines the space coordinating authority.

* Describes the positive impact on deterrence that commercial and multinational space capabilities can provide by increasing resiliency of space architectures.

* Expands the list of entities with space operations roles and responsibilities.

* Updated to be consistent with national policy, DOD instructions, and other joint publications.

Inside the Air Force reports today that the service is asking for industry input in an ongoing assessment of upcoming decisions related to the future of national security space launch:

Commissioned by the Defense Department's Defense Space Council, the service in March began a study of upcoming decisions in the area of government space launch, which the DOD refers to as national security space launch. The Air Force's deputy under secretary for space, Richard McKinney, is leading the study, the goal of which is to ensure the government makes deliberate, informed and timely decisions, according to Air Force spokesman Maj. Eric Badger.

"The objectives of this assessment are to identify future national security space key decisions and understand the opportunities associated with potential policy changes, emergence of new entrants and the long-term possibilities for [science and technology] and [research and development] investments," Badger told Inside the Air Force in a June 4 email. "Given forecasted fiscal constraints, the department will use the data gathered to make informed, deliberate and risk-conscious decisions to maintain assured access to space for national security space missions."

The study is scheduled to be completed by August and Badger said that while certain pieces of the study may be classified, the bulk of it will likely be publicly released.

Read the full story.

Spending Marked
By John Liang
June 6, 2013 at 5:06 PM

The House Appropriations defense subcommittee yesterday in closed session marked up its version of the fiscal year 2014 military spending bill.

Here's the draft the appropriators worked on:

House Appropriations Defense Subcommittee's Draft FY-14 Defense Bill

In its fiscal year 2014 draft defense spending bill, released on June 4, 2013, the House Appropriations defense subcommittee wants to rescind $3 billion in funding previously allocated to Pentagon weapons-modernization accounts, cuts that would be imposed as part of a bill that would also trim the Pentagon's request for new weapons spending by $1.8 billion.

Hagel Praises Rice
By Christopher J. Castelli
June 5, 2013 at 8:39 PM

Defense Secretary Chuck Hagel issued a statement today strongly endorsing President Obama's selection of Susan Rice to be the new White House national security adviser. Hagel said he looks forward to working closely with Rice in her new role. "Susan Rice has been a very important leader on President Obama's national security team who has helped galvanize the international community to act on some of the toughest security challenges facing the United States," Hagel said. The defense secretary also praised Samantha Power, Obama's nominee to succeed Rice as United Nations ambassador. "She brings years of experience at the White House, in academia, and as a journalist to this critical position," he said.

Tom Donilon, who is resigning as national security adviser, deserves praise "for his strong leadership and tireless efforts," Hagel said. "For the past four and half years, both in my capacity as co-chairman of the President's Intelligence Advisory Board and now as secretary of defense, I have greatly valued Tom's intellect, skill, and dedication to an honest and open process that provides the president with the best advice on the toughest issues. I wish Tom and his family the very best for the future."

Late Report
By Jen Judson
June 3, 2013 at 8:25 PM

Back in January 2012, Inside the Army reported the Defense Department inspector general had concluded the Army should become the executive agent for non-standard rotary-wing aircraft for DOD -- this after finding that the military did not adequately manage the acquisition and support of these aircraft, according to a Jan. 5 summary of a report then marked "for official use only." As ITA reported at the time:

In reviewing the management of acquisition and support of NSRWA, the inspector general's office found improvements need to be made. According to the summary report, management of these rotary wing aircraft suffered because the NSRWA project management office, formed by the under secretary of defense for acquisition, technology and logistics, was set up as a temporary solution "without fully authorizing the project manager and his staff to make DOD-wide decisions." In addition, officials did not follow the formal acquisition process "even though [the NSRWA program] met the requirements of a major defense acquisition program," the report states.

Specifically, the report notes, the DOD officials could not produce a "comprehensive list" of all DOD-owned Russian Mi-17 helicopters. The officials could not identify total ownership costs and all planned requirements in support of these helicopters, the report stated.

The result of the inadequate management of these aircraft "may not have achieved the best value for the more than $1.6 billion NSRWA effort," according to the report, "and is at risk for inadequate management of the more than $1 billion in estimated future costs."

The inspector general's office recommends in the report that the NSRWA program be designated as a major defense acquisition program, acknowledging the program as a long-term effort. The report asks that acquisition documents be identified and developed and that all DOD procurement and support of these efforts be sent to one contracting command.

Almost 17 months after the release of the summary, the inspector general's office has released the full 56-page report.

EMARSS Flies
By Jen Judson
June 3, 2013 at 3:35 PM

The Army and Boeing flew the first of four Enhanced Medium Altitude Reconnaissance and Surveillance system aircraft on May 22 at a Beechcraft facility in Wichita, KS, according to a Boeing statement released today.

The aircraft flew for more than four hours “and completed all first-flight test objectives, including evaluation of aerodynamic handling qualities, aircraft systems performance, and autopilot functions,” the statement reads. It also touts related ground testing and a high-speed taxi.

The system is housed on a Beechcraft King Air 350ER.

Boeing's schedule for the delivery of the first four engineering and manufacturing development EMARSS aircraft has slipped by nearly a year. The last of the spy planes was to be delivered to the Army by Nov. 30, 2012. But by late last year, the program had fallen behind its 18-month schedule and experienced cost overruns, Lt. Col. Dean Hoffman, the service's EMARSS program manager, told Inside the Army last December.

The new schedule holds that the four spy planes should be delivered to the Army by September. The planes could be flying in Afghanistan in fiscal year 2014, before the planned drawdown of U.S. troops, according to Hoffman.

Going Global
By John Liang
May 31, 2013 at 4:06 PM

Former Pentagon acquisition chief Jacques Gansler and the University of Maryland's William Lucyshyn recently presented a paper at the Naval Postgraduate School's annual symposium on acquisition research.

In their paper, the two look at the impact of globalization on the U.S. defense industry:

Current U.S defense trade and industrial policy does not clearly address globalization or its implications. Instead, the current U.S. policy is the consolidation of numerous incremental changes, often contradictory in their aims. For example, the National Security Strategy seeks to open markets and increase military cooperation, while export controls and "buy American" laws inhibit the international trade in defense products (McLean, 2005). Furthermore, other factors such as International Traffic in Arms Regulations (ITAR) and export control laws disincentivize commercial firms from entering the defense market. When commercial technology has military applications, the State Department requires compliance with export control laws prior to exportation. These restrictions often make commercial firms think twice before entering the defense market, because their goods may be restricted in the commercial market. For example, in the construction of Boeing's new 787 Dreamliner, significant concern was raised over similar components that were also used in the Air Force’s B-2 Bomber (Gates, 2006). Finally, restrictions are not made for goods alone but can have an impact on the availability of labor as well. For example, restrictions on security clearances or visas for foreign nationals often make it difficult for U.S. firms to gain access to the best and brightest minds from around the world to work on highly technical fundamental research programs.

View the full paper here.

Paneling
By Christopher J. Castelli
May 30, 2013 at 8:47 PM

Former Rep. Jim Marshall (D-GA) has replaced former Rep. Norm Dicks (D-WA), a newly minted lobbyist, on the independent National Defense Panel that will oversee the Quadrennial Defense Review. Rep. Adam Smith (D-WA) initially tapped Dicks as one of his two nominees for the panel, but Dicks later recused himself due to his new role as a lobbyist at Van Ness Feldman, said Smith's spokesman, Michael Amato.

The United States Institute of Peace, where Marshall serves as president, issued a statement on the appointment earlier this month, but did not mention Dicks. The appointment also made headlines in Georgia.

New JIEDDO Chief?
By John Liang
May 30, 2013 at 8:29 PM

The Pentagon today announced the president's nominee to become the next prospective head of the Joint Improvised Explosive Device Defeat Organization: Army Lt. Gen. John Johnson, the commanding general of the Army component of U.S. forces in Korea.

If his nomination is approved by Congress, Johnson will face some existential issues, as Inside the Army reports this week:

Lawmakers want the defense secretary to provide a report to Congress on whether the Defense Department plans to kill or keep the Joint Improvised Explosive Device Defeat Organization.

The House Armed Services tactical air and land forces subcommittee, in its mark of the fiscal year 2014 authorization bill, included a provision requiring a report that includes an analysis of alternatives in determining JIEDDO's future plans.

If the defense secretary plans to discontinue JIEDDO, the report should describe how the Pentagon will integrate JIEDDO's major programs and capabilities "into other components with the Department of Defense" or discontinue them, the mark states. It was released last week. The report should also include "estimated costs to other components of the Department for any JIEDDO programs and capabilities that are reassigned to such components," it adds.

If the Pentagon decides to keep JIEDDO, the report should include a statement on the organization's mission and a description of its organizational structure, as well as the "lines of authority within the Department," the mark states. Information on JIEDDO's costs and "budgetary impacts related to implementing any changes to the mission of JIEDDO and its organizational structure" and personnel strength -- to include contractors -- should also be included, the proposed legislation says.

View the full story.