The Insider

By Tony Bertuca
December 20, 2024 at 7:53 PM

(Editor's note: This story has been updated with new information.)

The House and Senate voted to pass a revised -- and slimmed down -- continuing resolution tonight just hours before a scheduled government shutdown, retaining provisions from an earlier bill that would provide $14.6 billion in funding for the Columbia- and Virginia-class submarine programs. Like the previous CR, the bill would extend federal funding until March 14.

The earlier bill proposed by House Speaker Mike Johnson (R-LA), which ran more than 1,500 pages, was torpedoed by President-elect Trump with the help of tech mogul Elon Musk, who took to X, the social media outlet he owns, to muster opposition on the grounds that the legislation approved too much new spending and contained too many riders supported by Democrats.

The new bill is 118 pages. Like the previous version, it would allocate $8.8 billion toward the Columbia-class submarine, with $5.9 billion for advance procurement and $2.9 billion for standard procurement work. The amount is nearly $5 billion more than what was sought by the White House Office of Management and Budget.

The legislation also includes $5.7 billion to fund three Virginia-class submarines and to support wage increases for shipyard workers.

The bill also contains, among other provisions, about $100 billion for disaster assistance and $10 billion in farm aid. The bill does not suspend the debt ceiling like Trump wanted.

By John Liang
December 20, 2024 at 2:49 PM

This final INSIDER Daily Digest before the holiday break has news on a pending drone swarm shoot-down attempt, lawmakers' interest in advanced energetics and more.

Keep an eye out for a drone swarm shoot-down experiment in the coming days:

Epirus to showcase 'one-to-many' defense in early 2025 drone swarm demo

Epirus, a defense technology company, will host a live demonstration as soon as this month to showcase its advanced counter-drone capabilities, including a "100-drone shoot down" that aims to display the company's ability to neutralize a swarm of unmanned aerial systems with a single, coordinated strike.

Lawmakers want to speed up the process of developing chemicals and formulations used in explosives and propellants:

Congressional authorizers leaning into energetics funding with future budget line-item requirement

The fiscal year 2025 defense authorization conference bill charges the defense secretary to establish a line item to fund the Defense Department's Joint Energetics Transition Office in future budget justification submissions.

Earlier this year, Navy officials confirmed a return to full mission capability for the V-22 fleet would not occur until mid-2025:

NAVAIR directs inspection of gearboxes before each Osprey flight

Naval Air Systems Command has directed the inspection of each V-22 Osprey’s Proprotor Gearbox -- the critical part of machinery linked to a series of crashes in recent years -- to verify its current flight hours before each aircraft’s next flight, according to a Navy statement today.

The Air Force's top civilian official spoke this week at a Mitchell Institute event:

Kendall: Air Force can't afford to pay for the Space Force

The Pentagon needs to fund the Space Force separately from the Air Force to ensure both receive a sufficient budget, according to Air Force Secretary Frank Kendall.

Sen. Roger Wicker (R-MS) released a report this week to change the way the Defense Department does business by getting better weapons to troops faster and maximizing taxpayer dollars as well as related legislation:

Wicker reveals new DOD acquisition reform bill as he preps for key defense chair

Sen. Roger Wicker (R-MS), who is expected to chair the Senate Armed Services Committee next year, unveiled new legislation today aimed at reforming the Pentagon's notoriously slow weapons procurement and budgeting processes.

Document: Wicker's 'FORGE Act' and report on 'Restoring Freedom’s Forge: American Innovation Unleashed'

Happy Holidays!

Inside Defense would like to wish our readers a safe and healthy Holiday Season and a prosperous New Year. The next INSIDER Daily Digest will be issued Dec. 30.

By Nick Wilson
December 20, 2024 at 11:38 AM

The Navy has completed a congressionally directed testing milestone in its development of unmanned surface vessels, successfully demonstrating 720 hours -- 30 days -- of continuous USV engine operation with no human intervention on six different engine systems, the service announced yesterday.

This testing, mandated by the 2021 National Defense Authorization Act, requires the Navy to complete the 720-hour power demonstration on USV engine systems before they are eligible for use on large USVs. To pass, the engine equipment must run for the full 30-day duration with no human intervention, including corrective or preventative maintenance.

The demonstration is part of a larger USV testing effort meant to ensure engine systems are capable of autonomous operations for extended periods, the Navy announcement states.

The Navy and a series of industry partners completed the 720-hour test on six separate engine systems over the past year, clearing each of them for use in future large USV development.

The sixth and final test, which ran from June 19 to Sept. 5, evaluated the MTU 8V4000M24S engine model. The demonstration was run at Daimler Trucks North America Aftermarket Solutions in Tooele, UT and was conducted by Precise Power Systems on behalf of Austal USA, with Navy oversight.

“This milestone marks a pivotal advancement in our naval strategy, as it enhances our capabilities in unmanned operations," said Rear. Adm. Kevin Smith, the head of the Navy’s unmanned and small combatants program office, in a statement included in the announcement.

"Successfully demonstrating a power system that can sustain autonomous operations for 30 days without maintenance not only bolsters our readiness but also sets the stage for a truly integrated manned-unmanned fleet, ensuring we remain at the forefront of maritime innovation,” Smith’s statement continues.

In December 2023, the 1550 kw Caterpillar 3512C model engine became the first to reach the milestone in a demonstration run by Bollinger and Carter Machinery on behalf of Caterpillar in Chesapeake, VA, according to the Navy announcement.

The Caterpillar 2300 kW rated 3516 main propulsion diesel, lube oil and fuel system was also successful in a demonstration run by Fincantieri Marinette Marine and Carter Machinery on behalf of Caterpillar.

The Southwest Research Institute and Gibbs & Cox on behalf of Cummins completed the demonstration with the QSK95 diesel engine paired with an ABB AMG 0560M04 LAE generator.

HII and the Coast Guard validated the MTU 20V 4000 M93L main propulsion diesel engine configuration on behalf of MTU, while L3Harris validated the QSK60 diesel engine and QSM11 marine diesel generator set for Cummins.

By Nick Wilson
December 20, 2024 at 10:40 AM

Hanwha Systems and Hanwha Ocean has completed its $100 million acquisition of Philly Shipyard, clearing the way for the South Korean defense company to begin U.S.-based shipbuilding operations.

According to a company announcement, Hanwha received Committee on Foreign Investment in the United States (CFIUS) approval in September, clearing the last hurdle in the acquisition process. The Philadelphia-based yard will be renamed Hanwha Philly Shipyard, the announcement adds.

Hanwha executive David Kim, who previously served as executive vice president for Hanwha Defense U.S.A. and was involved in the acquisition, will take over as chief executive officer of the shipyard to guide it through the transition, the notice states.

“We plan to grow and build on a long tradition of success, by expanding production using advanced technologies, and supporting the national revitalization of U.S. shipyards,” Kim said in a statement included in the release.

“Together, we begin working toward our vision for Hanwha Philly Shipyard: to be a trusted U.S. shipbuilder, challenging and redefining sustainable maritime solutions for commercial and government clients,” Kim’s statement continues. “We intend to do that by pushing the boundaries of shipbuilding by combining people with technology to build best-in-class vessels.”

Hanwha announced it had reached a purchase agreement to buy the yard from Norwegian investment group Anker ASA in June. The acquisition was endorsed by Navy Secretary Carlos Del Toro, who has encouraged foreign investment as a means of rejuvenating a struggling domestic industrial base.

Philly Shipyard sits on the site of the Navy’s former Philadelphia Naval Shipyard, which was closed in 1996. The yard has been operating under private ownership since 1997, primarily building commercial cargo ships.

In October, Mike Smith, the current president and CEO of Hanwha Defense U.S.A., said the company aims to take on module fabrication work for Navy ship and submarine programs at Philly Shipyard, indicating module work is the first step in building a relationship with the Navy and growing U.S. business.

By Nick Wilson
December 19, 2024 at 3:52 PM

The Navy released its first Advanced Manufacturing Strategy today intended to expand the service's use of technologies like additive manufacturing and 3D printing for construction, repair, re-work and the reverse engineering of parts.

The strategy includes three lines of effort, starting with “harness cutting-edge commercial capabilities for strategic advancement.” Under this effort, the Navy will look to expand the use of advanced tech in shipbuilding and weapon acquisition programs through various collaborations with industry.

The second line of effort, “modernizing organic depots and strengthening intermediate capabilities,” will see the Navy pushing to upgrade technology and train personnel within its public shipyards and other government-run installations, the document states.

The third and final line of effort, “strengthening warfighter self-sufficiency for mission success,” focuses on equipping forward-operating forces with advanced manufacturing tech to enable on-the-ground repairs and “on-demand manufacturing support,” the document indicates.

The new strategy, which aligns with the National Defense Strategy and the National Defense Industrial Strategy, implements recommendations provided by the Navy’s Science and Technology Board on opportunities to leverage additive manufacturing, according to a service announcement.

In addition to 3D printing and additive manufacturing, the strategy targets technologies including subtractive manufacturing, cold spray and directed-energy deposition and coatings removal, robotics and automation, data analytics as well as advanced machining.

“The leveraging of these cutting-edge innovations will allow the Navy and Marine Corps to maintain dominance. The department will continue to expand advanced manufacturing efforts in order to deliver lethal and affordable capabilities to the warfighter at the speed of relevance,” said Navy acquisition chief Nickolas Guertin in a statement included in the release.

By John Liang
December 19, 2024 at 2:10 PM

This Thursday INSIDER Daily Digest has news on the cyber battlespace, the Switchblade loitering munition system and more.

A new Defense Science Board report on the cyber battlespace is in the works:

DOD deputy tech chief seeks insight on cyber battlespace, citing 'major shift'

Pentagon deputy technology chief David Honey is directing the Defense Science Board to conduct a study on "all facets of battlespace management" with regards to the cyber domain.

The Government Accountability Office provided Inside Defense with more details around its denial of a protest by unmanned aerial vehicle manufacturer Mistral Inc. for the Switchblade loitering munition system:

GAO: Army’s AeroVironment Switchblade award was justified

The Army’s decision to award a $990 million contract to AeroVironment for the Switchblade loitering munition system without a full and open competition was justified based on temporary acquisition authorities granted by Congress in the Fiscal Year 2023 and 2024 National Defense Authorization Acts, according to the Government Accountability Office.

The Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act would require the president to appoint a "maritime security adviser" to coordinate national maritime affairs and policy, as well as update the National Maritime Strategy:

New bipartisan, bicameral bill proposes overhaul of maritime security and industry

Lawmakers unveiled legislation today aiming to revitalize the United States shipbuilding and maritime industries through several key efforts, including the establishment of a new position within the White House to direct national maritime security policy.

A series of Self-Propelled Howitzer prototype demos will wrap up before the start of the new calendar year on schedule:

Self-propelled howitzer demos to wrap this month, competitive testing to follow

As the Army nears the end of its "road show" scouting systems across the world for its Self-Propelled Howitzer Modernization (SPH-M) program, its findings are guiding preparations for the next step: a competitive evaluation at Yuma Proving Ground, AZ, in fiscal year 2026.

Sen. Tim Kaine, the top Democrat on the Senate Armed Services seapower subcommittee, spoke about Virginia-class submarines this week:

Kaine calls for improved production and oversight as Senate votes to boost Virginia sub funding

Comprehensive reform is needed in the shipbuilding industry on all fronts, Sen. Tim Kaine (D-VA) told reporters hours before the Senate voted 85-14 to approve increased submarine program funding in the compromise fiscal year 2025 defense authorization bill.

By Shelley K. Mesch
December 19, 2024 at 12:34 PM

Defense Under Secretary Heidi Shyu has tasked the Defense Science Board with studying and providing recommendations on how prepared the Defense Department is to survive against and respond to a nuclear attack, according to a letter posted this week.

“Vladimir Putin’s veiled threats to use nuclear weapons in the conflict with Ukraine, for example, have led to questions not only about how to deter the use of nuclear weapons, but also about the ability of United States (U.S.) forces to survive, respond and prevail following another country’s use of nuclear weapons,” Shyu wrote in the letter dated Nov. 19.

North Korea’s nuclear advancement and the potential of Iran’s nuclear program also concern Shyu, she wrote, as they raise the potential of “opportunistic aggression accompanied by small-scale nuclear use in a second or third theater.”

The DSB’s Permanent Subcommittee on Threat Reduction will assess:

  • A spectrum of options for adversary nuclear employment including the number of weapons used, yield, employment method and troop exposure.
  • DOD directives and governance including the roles and responsibilities of combatant commands.
  • Access and maneuverability of the joint force in military and humanitarian response.
  • Nuclear survivability of weapon and communications systems and architecture.
  • Medical response and operations.
  • Coordination with allies and international organizations.
  • Technical and operational standards, capabilities and expertise to support the above.

Each service needs to coordinate on its nuclear survivability methods, she wrote, to maintain a balanced joint force.

By Tony Bertuca
December 19, 2024 at 10:57 AM

Pete Hegseth, President-elect Trump’s pick for defense secretary, is scheduled to testify before the Senate Armed Services Committee on Jan. 14.

Hegseth tweeted that he will be prepared for the hearing following public statements about the date from Sen. Roger Wicker (R-MS), who is expected to become committee chairman next year.

“See you January 14,” Hegseth tweeted.

The nomination of the former Fox News host is controversial as he faces questions about his lack of Pentagon experience and allegations of sexual assault, mismanaging funds of a veterans organization he once led, and drinking on the job. Hegseth has denied all allegations and wrongdoing.

Trump, meanwhile, continues to publicly support Hegseth as the nominee works to shore up Republican votes.

By Abby Shepherd
December 18, 2024 at 5:56 PM

The Navy has awarded over $3.4 billion to Northrop Grumman for the engineering and manufacturing development of the E-130J, the Take Charge and Move Out (TACAMO) mission aircraft, according to a contract announcement Wednesday.

The contract includes funding designated for integration laboratories, training courses and devices, product support and the test and delivery of three engineering development model aircraft, according to the announcement.

Collins Aerospace and Lockheed Martin will be the designated subcontractors.

“This contract provides for the design, development, and integration of mature subsystems, to include Collins Aerospace’s Very Low Frequency into the government-furnished C-130J-30 air vehicle,” the announcement states.

The Navy’s program for airborne nuclear command, control and communications will replace the aging E-6B aircraft and is set to transition to a major capability acquisition pathway in the first quarter of fiscal year 2025, a Navy spokesperson told Inside Defense in August.

By Dan Schere
December 18, 2024 at 4:01 PM

The Army has awarded Palantir a $400 million contract to support the Army Vantage program as it transitions to be the Army Data Platform, the technology company announced today. The contract is for a period of up to four years.

The Army initially selected Palantir for the Vantage program in 2019 and awarded the company a $458 million production agreement at that time.

Vantage has supported more than 100,000 users to date and reached record high usage this year, according to Palantir.

The Army Data Platform will “continue all current capabilities and carry over the Vantage infrastructure to align with Army data policy and plans,” according to the company. The data platform will also expand to include “mission owners across the entire Army enterprise.” The mission owners will be able to bring new requirements to the platform, according to Palantir.

By John Liang
December 18, 2024 at 2:48 PM

This Wednesday INSIDER Daily Digest has news on the Pentagon's annual report on the Chinese military, the continuing resolution released by House Speaker Mike Johnson (R-LA) and more.

The Defense Department has released its annual assessment of Chinese military capabilities:

DOD estimates actual Chinese military spending between $330B and $450B

China’s military budget is anywhere between 40% and 90% more than the amount publicly disclosed by the government in Beijing, according to the Defense Department's annual assessment of Chinese military capabilities.

Document: DOD's 2024 China military power report

House Speaker Mike Johnson (R-LA) unveiled a continuing resolution to fund the government through next March:

House GOP stopgap bill contains $14.6 billion in submarine funds

A massive, 1,547-page stopgap continuing resolution unveiled by the House GOP last night runs through March 14 and would, among a host of other provisions, provide $14.6 billion in funding for the Columbia- and Virginia-class submarine programs.

Document: FY-25 continuing resolution

Don't expect to see a public version of the Government Accountability Office's annual missile defense assessment anytime soon:

Annual MDA audit now classified 'CUI,' loss of transparency in new missile warfare era

Bowing to Defense Department "sensitivity concerns," congressional auditors will not make public the 2024 annual review of the Missile Defense Agency's work -- the first time in more than two decades the Government Accountability Office will cloak its report on MDA's progress in meeting the acquisition goals and objectives of a $246 billion project.

A new, experimental sub-10-inch-diameter solid-rocket motor took four months from concept to successful test:

Ursa Major, Raytheon advanced long-range SRM completes successful Army missile flight test

Solid-rocket motor startup Ursa Major and defense prime Raytheon teamed up to develop an advanced long-range, solid-rocket motor, which has completed a successful missile flight test for the Army, the companies announced Wednesday.

The head of the Space Development Agency spoke this week at a Center for Strategic and International Studies event celebrating the Space Force's fifth anniversary:

Lacking FAA approval, SDA runs costly tests outside of U.S.

The Space Development Agency has resorted to testing its Link 16 connections outside of the U.S. as Federal Aviation Administration approval remains out of reach, leading to extended timelines and higher costs, SDA director Derek Tournear said.

A bipartisan House task force report on artificial intelligence released this week "encapsulates a targeted approach that balances the need to promote vibrant AI innovation while safeguarding Americans from potential harms as we enter an era of widespread adoption of AI":

House task force sees AI as 'critical' for national security

A bipartisan group of House lawmakers released its findings and recommendations on artificial intelligence policy today, largely backing existing Pentagon efforts and warning of the increased use of AI by potential U.S. adversaries.

Document: House report on AI

A new Government Accountability Office report finds that the Navy's cruiser modernization effort "has been plagued with problems like schedule delays, wasted costs and poor-quality work":

Navy mismanaged contractors and 'wasted' nearly $2 billion in botched cruiser modernization plan, GAO finds

The Navy's mismanagement of an effort to modernize seven Ticonderoga-class cruisers has "wasted" nearly $2 billion and failed to deliver the intended service life extensions for most of the ships, according to a new report from government auditors that provides six recommendations to avoid similar pitfalls in future surface ship modernization plans.

Document: GAO report on Navy cruisers

By Tony Bertuca
December 18, 2024 at 1:07 PM

The Senate voted today 85-14 to pass the final version of the fiscal year 2025 defense authorization bill, sending the $895 billion piece of legislation to President Biden for his signature.

Biden is expected to sign the bill into law, making it the 64th consecutive year the legislation will be passed.

The bill, which passed the House last week 281-140, includes numerous provisions related to U.S. military policy and honors the spending cap set by the Fiscal Responsibility Act.

Democratic lawmakers have noted their opposition to a controversial provision in the bill “airdropped” by House Speaker Mike Johnson (R-LA) that would block the military’s health care program, TRICARE, from covering transgender medical treatment for the children of servicemembers.

Senate Armed Services Committee Chairman Jack Reed (D-RI), prior to the bill’s passage, acknowledged the concerns of Republicans, who hoped to see a higher topline that broke the FRA cap and Democrats, who had sought to remove the transgender provision.

“Ultimately though, we have before us a very strong National Defense Authorization Act,” he said. “I am confident it will provide the Department of Defense and our military men and women with the resources they need to meet and defeat the national security threats we face.”

Sen. Roger Wicker (R-MS), the ranking member of the committee who is expected to become chairman in January when the GOP takes the chamber’s majority, said he hopes Congress will work “early next year” to increase defense spending.

Wicker and his team are working on a proposal to increase defense spending via an upcoming budget reconciliation bill.

By Dan Schere
December 18, 2024 at 9:45 AM

Bell Textron announced Tuesday that the company will build a production facility in Fort Worth, TX to support production of the Future Long Range Assault Aircraft.

The 447,000-square foot factory will focus on component manufacturing, according to a company press release. Bell plans to have the facility ready for when FLRAA, the eventual replacement for the Black Hawk, enters low-rate initial production in 2028. 

Lisa Atherton, president and CEO of Bell, said in a statement Tuesday that the company is “committed to establishing future manufacturing locations to deliver the first fielded aircraft by the early 2030s and do our part to revolutionize U.S. Army aviation.”

Bell won the FLRAA contract in December 2022, and the program moved to milestone B this past summer. Army officials have said that even when the new aircraft enter service after 2030, it will not be a one-for-one replacement for the Black Hawk.

Bell has established multiple manufacturing facilities since the Army awarded the FLRAA contract two years ago, and the company plans to continue design maturation and prototyping during the current engineering and manufacturing development stage.

Brig. Gen. David Phillips, the Army’s program executive officer for aviation, said in a statement Tuesday that the service is “committed to delivering the Future Long Range Assault Aircraft providing the speed, range and endurance needed to conduct effective air assault, MEDEVAC and resupply missions for future large scale combat operations.”

“It is great to see our industry partners share in that commitment by investing in state-of-the-art facilities to produce the Army’s first 'born digital' aircraft weapon system,” he said.

By Tony Bertuca
December 17, 2024 at 5:42 PM

A senior defense official acknowledged today that the Pentagon might not be able to use all of its remaining $5.6 billion in Presidential Drawdown Authority to rapidly transfer U.S. weapons to Ukraine before President-elect Trump is sworn in.

“We will continue to do drawdown packages for the remainder of this administration but $5.6 billion is a substantial amount of authority, so I would certainly anticipate that there could be remaining authority that could transition and be available for the next administration to use,” said the official, who briefed reporters on the condition of anonymity.

Meanwhile, the Defense Department does plan to exhaust its remaining $1.2 billion in Ukraine Security Assistance Initiative funds before the end of the calendar year. The money from USAI is used to put weapon systems directly under contract with U.S. defense firms, though it may take months or years for the capabilities to arrive on the battlefield.

Trump has long been critical of U.S. aid to Ukraine in its fight against Russia and said during a televised speech yesterday that he intends to seek an end to the war by pushing both sides to negotiate for peace.

“He should be prepared to make a deal, that’s all,” Trump said of Ukrainian President Volodymyr Zelenskiy.

Russian President Vladimir Putin, Trump said, “has to make a deal too.”

Trump also said he disagreed with the Biden administration’s decision to allow Ukraine to use long-range Army Tactical Missiles Systems to hit targets in Russia.

“I don’t think they should have allowed missiles to be shot 200 miles into Russia,” he said.

The remarks are the latest signal that Trump could seek to end or curtail U.S. military aid to Ukraine when he takes office in January.

“If I were president, that war would have never happened,” Trump said.

By John Liang
December 17, 2024 at 11:32 AM

This Tuesday INSIDER Daily Digest has news on Space Force staffing structure, the Pentagon's Cybersecurity Maturity Model Certification program, the Navy's Columbia-class submarine and more.

The Center for Strategic and International Studies held an event today to mark the Space Force’s fifth anniversary:

Rogers calls for more Space Force guardians, pulling billets from Air Force and OSD

The Air Force and Office of the Secretary of Defense should transfer billets to the Space Force to grow the new service without adding to the Defense Department personnel total, House Armed Services Committee Chairman Mike Rogers (R-AL) said today.

The latest cyber defense news from our colleagues at Inside Cybersecurity:

CMMC accreditation body sets Jan. 2 launch for official assessments, releases updated guidance

The accreditation body behind the Pentagon's Cybersecurity Maturity Model Certification program has announced next steps as the first rulemaking to implement the DOD initiative goes into effect, including a start date for assessments and the release of the assessment process guide.

Info-sharing leaders raise questions over industry needs in CISA incident response plan draft update

Stakeholders from the information technology and defense industrial base are urging the Cybersecurity and Infrastructure Security Agency to consider a wider range of industry needs as part of an effort to update the national cyber incident response plan for the first time in eight years.

Political leaders understand the critical role of modernizing the sea-based leg of nuclear deterrence, Rear Adm. Todd Weeks, program executive officer for strategic submarines, said at an Advanced Nuclear Weapons Alliance Deterrence Center panel this week:

Continued support for Columbia expected from incoming administration, Navy official says

Amid budget negotiations and the upcoming presidential transition, the future of the Columbia-class nuclear-powered ballistic missile submarine program is critical, a Navy official said Monday.

During a first-of-its-kind, open-ocean demonstration, Military Sealift Command vessel Washington Chambers (T-AKE-11) was able to connect with Ticonderoga-class cruiser Chosin (CG-65) to aid in the reloading of the latter vessel’s MK 41 vertical launch system "many times" over multiple days in multiple sea states:

Navy reveals fresh details on TRAM demo as lawmakers advance calls for concrete fielding plan

As lawmakers advanced joint authorization legislation calling on the Navy to produce a concrete strategy for delivering an at-sea re-arming capability, service officials last week revealed new details about a successful demonstration of their developing Transferrable Reload At-sea Method (TRAM) conducted in October.