The Insider

By Jason Sherman
August 22, 2011 at 3:55 PM

Defense Secretary Leon Panetta said the Pentagon is working with OMB to revise spending blueprints for fiscal year 2013, his first comments on budget matters since OMB Director Jacob Lew on Aug. 17 directed executive branch agencies to prepare plans that are 5 percent and 10 percent below FY-11 spending levels.

“As always, we will work with OMB,” Panetta told the DOD-run American Forces Press Service in a story published online Friday afternoon. “They provide all kinds of guidance as we discuss how we approach these issues.”

The Pentagon's FY-11 budget allocation, excluding war costs, is $530 billion. A 5 percent cut, or $26.5 billion, would lower the military's FY-13 base budget to $503.5 billion. A 10 percent cut to projected FY-13 Pentagon spending, a $53 billion decrement, would push DOD's topline down to $477 billion and be in line with defense spending cuts required under the new law if Congress this fall does not agree to a long-term plan to reduce the deficit by at least $1.2 trillion.

More from the AFPS story:

Defense Department officials are working with the Office of Management and Budget on guidance issued yesterday that all agencies’ fiscal 2013 budget requests be at least 5 percent less than current appropriations.

Pentagon Press Secretary George Little told reporters today that Defense officials are working with OMB to determine what that will mean for the DOD budget.

“I don’t think this is necessarily a sea-change event,” he said, adding that Pentagon officials for months have been working toward a goal of cutting $400 billion from the budget over the next 10 years.

By Thomas Duffy
August 22, 2011 at 1:48 PM

The House of Representatives will end its August recess and get back to work Sept. 7, leaving only 24 days in fiscal year 2011. When the House comes back its appropriators will have to consider the adjustments to the FY-12 appropriations bills imposed by the debt ceiling agreement and prepare to hammer out final appropriations bills with the Senate.

With that in mind, late on Friday House Appropriations Committee Chairman Hal Rogers (R-KY) issued the following statement:

“The Appropriations Committee has repeatedly and successfully made significant spending cuts this year that have drastically changed the trajectory of federal spending, trimming billions of dollars and imposing strict spending reductions so we don’t leave our children with mountains of debt. We will continue to work in this vein -- in a bicameral manner -- prioritizing House-passed Appropriations bills in negotiations and completing our Appropriations work as soon as possible. It is imperative that the Congress complete these must-pass bills in a timely manner to avoid the harmful, destabilizing effects caused by a delayed and drawn out Appropriations process.

“In addition, my Committee members and I remain committed to the responsible 2012 spending level agreed to by the House, Senate, and White House under the recent debt ceiling agreement. The work we do on our Appropriations bills this year will fulfill this agreement by reducing discretionary spending from current levels – saving the taxpayers billions – and steering agency budgets across the federal government to more sustainable and responsible levels.”

By Thomas Duffy
August 19, 2011 at 2:45 PM

With a nod toward giving the taxpayer what he's paying for, the top White House budget officer this week sent a memo to all government department heads outlining how the Obama administration wants to operate a more efficient, effective and accountable government.

In his Aug. 17 memo, Office of Management and Budget Director Jacob Lew said there are two management efforts that need the immediate attention of all department chief operating officers:

"First, under the GPRA Management Act, COOs are responsible for leading their agency's efforts to set priority goals; designating a senior official responsible for each goal; and reviewing progress quarterly to improve performance and reduce costs. The attached guidance provides more information on the Act's requirements for agencies

Second, COOs must ensure that their agencies are redoubling their efforts to cut waste, as required by Executive Order 13576, "delivering an Efficient, Effective and Accountable Government." Executive Order 13576 initiated the Campaign to Cut Waste and charged the Vice President with meeting with cabinet members to monitor agency progress on waste reduction, performance and management improvements. Chief Financial Officers are expected to lead agency efforts to implement the requirements of the Campaign to Cut waste, in accordance with guidance issued by the Controller on June 28, 2011."

Lew's memo includes a 39-page attachment that gives detailed instructions to the department COOs on how to carry out these efforts.

By
August 18, 2011 at 8:46 PM

As Inside the Pentagon notes today, the Pentagon is planning to release an updated version of its Strategic Management Plan this month, according to Deputy Chief Management Officer Beth McGrath.

The plan lays out strategic priorities, such as acquisition, IT infrastructure, and the total workforce mix, among its seven key goals, McGrath said following a Government Executive conference panel Tuesday.

DOD released the last version in December 2010, which overhauled a number of its initiatives and performance measures to align them more closely with the objectives of the Quadrennial Defense Review.

By Sebastian Sprenger
August 17, 2011 at 5:05 PM

The Joint Improvised Explosive Device Defeat Organization has received congressional approval to shift $350 million within its accounts. The money is needed to boost JIEDDO's "attack the network" line, at the expense of the organization's "defeat the device" efforts, Pentagon Comptroller Robert Hale wrote in a June 17 reprogramming request that has been approved by the defense committees in Congress.

Of the $350 million, $134.2 million will go toward a "High Spectral Imaging Initiative" aimed at disrupting the IED supply chain, according to the document. The rest, $215.8 million, will finance various, unspecified joint urgent operational needs focused on attacking the network of bomb makers, suppliers and emplacers, the document states.

By Thomas Duffy
August 16, 2011 at 7:10 PM

On the day the Association for Unmanned Vehicle Systems International is hosting a big event in Washington, Rep. Michael Turner (R-OH) announced a teaming arrangement from his home district that is centered on unmanned aerial systems.

Turner, the chairman of the House Armed Services strategic forces subcommittee, issued the following statement:

“Today the Dayton community has taken another step towards being a leader in the field of unmanned aerial systems (UAS). This agreement signed by Sinclair College and UAI will provide students with the tools to play an increased role in this expanding field. Already, UAS is a $100 billion industry. Currently, there is language passed by the House in the FY 2012 National Defense Authorization Act, which would place Dayton and Wilmington in a strong position to be future testing sites for UAS. An educated workforce with a focus on this field is a vital component which would help UAS become a significant job creator for our region.

"The agreement focuses on providing innovative training in the emerging industry of unmanned aerial systems. These classes will serve as the foundation for an emerging UAS program to be hosted by Sinclair College. The new class offerings will focus on the information technology side of unmanned aerial systems, including data analysis and full motion video where there is an enormous need for trained technicians."

According to its website, the UAI is a non-profit institute created to advance the UAS industry in North Dakota and the surrounding region.

By Sebastian Sprenger
August 15, 2011 at 9:33 PM

Army Secretary John McHugh today announced the creation of a panel designed to overhaul what an service announcement described as a generating force stuck in the 1970s. The goal of the "Institutional Army Transformation Commission" is to implement changes -- and develop new ones -- formulated earlier this year by a task force carrying a similar mandate, according to an Army statement.

"While I've been encouraged by the task force's early work, the simple fact is that large-scale institutional transformation takes years to mature before agile, cost-effective organizations emerge -- with a culture of continuous improvement incorporated in all activities," McHugh was quoted as saying.

According to an Army spokesman, the commission will be led by Leonard Braverman, whose title is technical director in the office of the deputy under secretary of the Army. The maximum number of commission members is 15 from across the Army -- plus, perhaps, a few private-sector experts.

By Dan Dupont
August 15, 2011 at 4:04 PM

The June 2011 Selected Acquisition Reports were sent to Congress last week, according to an information paper released by the Pentagon.

Quick highlights:

Reports were transmitted on Joint Tactical Radio System Ground Mobile Radio (JTRS GMR) for a Nunn-McCurdy breach, and AGM-88E Advanced Anti-Radiation Guided Missile (AARGM) for a schedule breach.

The June 2011 SARs show a net cost decrease for all MDAPs of 1.0 percent, primarily due to JTRS GMR.

More to come.

By John Liang
August 12, 2011 at 6:24 PM

Defense Secretary Leon Panetta and Secretary of State Hillary Clinton will conduct a live, Internet-broadcast "conversation" next week, the Pentagon announced earlier today.

The event will take place at 10:15 a.m. on Tuesday, Aug. 16 at the National Defense University's Abraham Lincoln Hall at Ft. McNair in Washington. CNN's Wolf Blitzer will moderate, according to the announcement.

(UPDATE 8:25 a.m., Aug. 15: Frank Sesno, director of the School of Media and Public Affairs at George Washington University, will moderate the discussion)

The event will be streamed live on the Defense and State department websites.

By John Liang
August 12, 2011 at 3:39 PM

Credit Suisse analysts, in a research note sent out this morning, write that Huntington Ingalls Industries' work on the Navy's aircraft carriers "bear watching." Further:

With DoD budgets under review, carrier centerlines (delivery frequency) are being discussed. Any delay to CVN-79 (already started, and accounting for ~10%/13% of our projected sales/EBIT for 2011-13) could be significant. Also, there are reports that HII is ~10% over target cost on CVN-78 (Ford), but HII noted this is typical of lead ships and financial targets are unchanged, which is supported by NN margin in Q2. Still, both carriers are a watch item for us.

During a conference call with Wall Street analysts yesterday, Mike Petters, HII's president and chief financial officer, pushed back against rumors that the Pentagon might consider stretching out the procurement plan for Gerald Ford-class carriers, or even cancel one altogether. As InsideDefense.com reported:

"There's a lot of speculation regarding the shipbuilding budget, including not only the timing of the next carrier in the Ford class, the John F. Kennedy, but also long-term," he said. "The ultimate outcome is only certain once the defense budget is finalized and signed into law."

He noted that HII has already started cutting steel on the Kennedy, and he argued that a carrier build cycle of six or seven years would increase shipbuilding costs and harm suppliers.

Asked about reports that the lead ship in the new carrier class, the Ford (CVN-78), was $562 million over budget due to construction inefficiencies, Petters only said that the company was performing well and on track.

"I'm not going to comment on any particular story out there," he said.

By Jordana Mishory
August 11, 2011 at 3:41 PM

Want to know what's happening minute-by-minute on today's Hypersonic Technology Vehicle test?

Well, DARPA has a tweet for that.

The Defense Advanced Research Projects Agency has been live-Tweeting (@DARPA_News) today's launch of the HTV-2. The program, which can get to speeds of Mach 20, is part of the Pentagon's Conventional Prompt Global Strike effort designed to strike worldwide targets in less than an hour.

After counting down to the launch, at about 7:45 a.m. Pacific Standard Time, DARPA_News tweeted: "We have lift-off of the Minotaur IV launch vehicle carrying the 2nd #HTV2 flight test vehicle." One minute later, DARPA let the Twitterverse know that in a few minutes the vehicle will leave the visual range of Vandenberg Air Force Base, CA tracking, where the launch took place.

"Confirmation of a successful #HTV2 separation from the Minotaur IV launch vehicle," DARPA tweeted right before 8 a.m. PST. This was followed by news that Pacific Tracker acquired the signal, and that the mission is on track with the vehicle entering the "glide phase." During this phase, the HTV-2 "performs maneuvers to test aerodynamic performance," according to a DARPA fact sheet.

But around 8:20 PST, a hiccup: "Range assets have lost telemetry with #HTV2. More to follow."

During the vehicle's first test in April 2010, the vehicle lost communication about nine minutes into the flight and crashed into the Pacific Ocean.

UPDATE (12:26 p.m.): DARPA's latest Tweet: "Downrange assets did not reacquire tracking or telemetry. #HTV2 has an autonomous flight termination capability. More to follow."

By John Liang
August 10, 2011 at 4:00 PM

Senate Appropriations defense subcommittee member Patty Murray (D-WA) is among the three Senate Democrats appointed yesterday by Majority Leader Harry Reid (D-NV) to the 12-member "supercommittee" charged with proposing major deficit-reduction measures later this year. Accompanying her will be Foreign Relations Committee Chairman John Kerry (D-MA) and Sen. Max Baucus (D-MT).

Senate Minority Leader Mitch McConnell (R-KY) announced today that Sens. Jon Kyl (AZ), Pat Toomey (PA) and Rob Portman (OH) were his picks for the supercommittee.

House Speaker John Boehner (OH) this morning announced his choices: Republican Conference Chairman Jeb Hensarling (R-TX), Ways and Means Committee Chairman Dave Camp (MI) and Energy and Commerce Committee Chairman Fred Upton (MI).

UPDATE (Aug. 11, 12:30 p.m.): House Minority Leader Nancy Pelosi (D-CA) has chosen Reps. James Clyburn (SC), Chris Van Hollen (MD) and Xavier Becerra (CA).

By John Liang
August 9, 2011 at 9:00 PM

The Pentagon recently updated its written guidance for using private security contractors in contingency operations to also include "humanitarian or peace operations, or other military operations or exercises."

The July 22, 2009, Defense Department instruction was changed on Aug. 1. Under the "applicability" clause, officials added the following:

The requirements of this Instruction shall not apply to a nonprofit nongovernmental organization receiving grants or cooperative agreements for activities conducted within an area of other significant military operations if the Secretary of Defense and the Secretary of State agree that such organization may be exempted. An exemption may be granted by the agreement of the Secretaries on an organization-by-organization or area-by-area basis. Such an exemption may not be granted with respect to an area of combat operations.

In a Feb. 21 report, the Congressional Research Service noted:

As of December 31, 2010, there were more than 27,000 private security contractor personnel in Afghanistan and Iraq, representing 17% of DOD's total contractor workforce in Afghanistan and Iraq. Since December 2009, the number of PSC personnel in Afghanistan has exceeded the number in Iraq.

Further, the CRS report outlines the legislative actions lawmakers could take to "help minimize the harm that armed private security contractors could have on U.S. efforts in Iraq, Afghanistan, and future operations." Specifically:

Define the Role that Private Security Contractors Can Play in Support of Military Operations Taking Place in Unsecured Environments

Many analysts believe that the use of armed private security contractors in combat or stability operations poses significant risks to U.S. government interests, including undermining efforts to win hearts and minds during counterinsurgency and other contingency operations. Defining the role that PSCs can -- and should not -- play in supporting military operations could help minimize the risk that contractors will be placed in situations where their actions will undermine U.S. efforts. Below are three different options for defining the role of PSCs.

Prohibit armed security contractors from being deployed in combat zones

Proponents of this approach argue that in combat zones, the mechanisms for oversight and accountability of contractors are likely to deteriorate and that, therefore, the use of deadly force should be restricted only to the military. The military possesses a more robust chain of command and is focused on achieving the mission, without consideration for profit motives or contractual requirements. Opponents of this approach argue that DOD simply does not have the forces to accomplish its mission in Afghanistan and Iraq, and that restricting the use of armed security contractors deprives the military of the flexibility to hire and dismiss defensive security contractors that can be tailored for specific situations in a highly fluid environment.

Restrict armed security contractors to performing static security

Such an approach would permit DOD to use armed security contractors in and around the perimeter of a static location and would bar contractors from performing convoy and some personal security. Contractors would also be barred from serving as quick reaction forces that move to the site of an engagement to extract or protect an individual or convoy. Proponents of this approach argue that most of the high-profile incidents involving armed contractors shooting at local nationals have occurred during convoy or personal security movements outside of the perimeter of a secure location. Accordingly, this approach specifically restricts the use of armed contractors only in those situations where there is likely to be a shooting incident that involves civilians. Opponents of this approach argue that such a restriction leaves DOD with insufficient forces to accomplish its mission in Afghanistan and Iraq. They also argue that this approach limits the flexibility that allows DOD to mobilize and demobilize defensive security forces that can be tailored for specific situations in a highly fluid environment.

Restrict armed security contractors to static security, with an exception for local nationals perform critical functions to the extent necessary to operate effectively and maintain control of its mission and operations.

Proponents of this approach maintain that using contractors in this way could still give DOD the benefits of using armed security contractors, including serving as a force multiplier, employing local nationals, and leveraging particular expertise and knowledge of contractors. Opponents of this approach could argue that such a restriction leaves DOD with insufficient forces to accomplish its mission in Afghanistan and Iraq, and that it limits the flexibility of DOD to mobilize and demobilize defensive security forces that can be tailored for specific situations in a highly fluid environment.

Allowing local national contractors to participate in convoy and personal security would minimize the impact of such a restriction on military forces. Proponents argue that reserving an exception for local nationals gives the military more flexibility in using PSCs without adding significant risk. As discussed above, using local national contractors is an important element in DOD’s counterinsurgency strategy. Local nationals understand the language and are subject to local jurisdiction. Few of the high-profile incidents between PSCs and local citizens involved local national security contractors who were working for the U.S. government. Opponents of this approach will still argue that such a restriction leaves DOD with insufficient forces to accomplish its mission in Afghanistan and Iraq, and that it limits the flexibility that allows DOD to mobilize and demobilize defensive security forces that can be tailored for specific situations in a highly fluid environment. Such a restriction could also hamper DOD in future military operations, particularly in the early days of a conflict when events are particularly fluid and the need to rapidly deploy security personnel could be acute. To address this last issue, Congress could empower a Combatant Commander to waive this restriction in initial phases of an operation, for a period not to exceed one year.

Use armed security contractors only in a supporting role for mobile security

Using primarily uniformed personnel (51% or more of total personnel) on each convoy security movement promotes a workforce mix that could give DOD actual command and control of security operations and contractor behavior. Alternatively, a minimal troop presence could be required, sufficient to maintain substantial command and control of contractor personnel. Such an approach appears to be in line with the Office of Management and Budget policy letter on inherently governmental which states that agencies should “ensure that federal employees perform critical functions to the extent necessary to operate effectively and maintain control of its mission and operations."

Proponents of this approach maintain that using contractors in this way could still give DOD the benefits of using armed security contractors, including serving as a force multiplier, employing local nationals, and leveraging particular expertise and knowledge of contractors. Opponents of this approach could argue that such a restriction leaves DOD with insufficient forces to accomplish its mission in Afghanistan and Iraq, and that it limits the flexibility of DOD to mobilize and demobilize defensive security forces that can be tailored for specific situations in a highly fluid environment.

By John Liang
August 8, 2011 at 6:33 PM

The Pentagon recently issued guidance that "establishes policy and assigns responsibilities for civil aviation intelligence." According to a July 29 Defense Department instruction:

a. There shall be a single lead DoD intelligence representative for the DoD civil aviation intelligence mission.

b. There shall be a single focal point in DoD for intelligence on foreign civil aviation-related entities associated with illicit activities or posing a threat to the United States, its allies, or its interests.

c. Civil aviation intelligence and other air domain awareness capabilities shall, to the extent possible and practicable, be compatible with or complimentary to maritime domain awareness capabilities with the long-term goal of integration.

Accordingly, the under secretary of defense for intelligence has the following responsibilities:

a. Establish DoD civil aviation intelligence policy consistent with DoD 5240.1-R ["Procedures Governing the Activities of DoD Intelligence Components that Affect United States Persons," December 1, 1982].

b. Be the principal DoD representative for interagency civil aviation intelligence policy.

c. Provide policy support and advocacy for DoD implementation of civil aviation intelligence matters.

d. Coordinate plans, program, fiscal resources, and activities that support the civil aviation intelligence mission, when necessary, with the Director of National Intelligence.

e. Oversee DoD civil aviation intelligence plans, programs, and operations.

By John Liang
August 5, 2011 at 4:10 PM

The Office of Naval Research is seeking industry proposals "for an energy dense air-independent, rechargeable/refuelable energy system for the Large Displacement Unmanned Underwater Vehicle Innovative Naval Prototype (LD UUV INP)," according to an announcement posted yesterday on Federal Business Opportunities. Further:

The goal of this program is to develop and demonstrate power system technologies capable of the performance specifications and characteristics contained in Tables 1-4 of the [broad area announcement]. Proposals shall describe a complete system concept, provide a detailed scope of work for the development of the core technology(ies) and conduct integrated bench-top system testing to achieve a Technology Readiness Level (TRL) of no less than 4 (Phase I Base). In addition to the specific S&T performance capabilities, proposers are expected to conduct a safety analysis (Preliminary Hazard/Safety Analysis (PHSA), reference in Appendix B) of the system energy technology concept. Any proposal that does not provide a specific full system solution, as well as a safety analysis, will not be considered.

PLEASE NOTE: NUCLEAR POWER OPTIONS WILL NOT BE CONSIDERED FOR THIS EFFORT

Inside the Navy reported in April that the service has been working on concept documents that will guide the future of unmanned underwater vehicles and antisubmarine warfare, according to the official in charge of the projects. Further:

Chief of Naval Operations Adm. Gary Roughead released his Guidance for 2011 document in October, stating that the service would "develop a streamlined, appropriately resourced model for concept generation and concept development at the operational level of war."

Since 2008, Naval Warfare Development Command has been developing concepts through a program known as "Concept Generation and Concept Development," or CGCD, and some major projects that will guide the future of many programs are under way.

Capt. David Tyler, director of concepts and capability development at NWDC, told Inside the Navy in an April 7 interview that the first project CGCD was involved in is the Leveraging the Undersea Environment concept.

"That set a pretty high bar for this whole concept development process, and as a result it also generated some actions, so we've been working quite a few of the ideas that have fallen out of that," he said.

A couple of concepts have been significant efforts at NWDC and "consumed a good part of my daily life here this year," Tyler said. One of those is the UUV enabling concept; the other is the distributed managed systems for antisubmarine warfare enabling concept (DMS for ASW).

The UUV enabling concept is about 70 percent complete, he said. "We've been working it through a series of workshops and war games and tabletops, trying to take a look at those UUVs we expect to have in the near-term, what are the capabilities we'd like to have on those things, what type of sensors or what do we need them to be able to do in the mid-term and long-term," said Tyler. "So we're trying to link all these technological advances together and, at the same time, make sure that they're meeting the warfighter's needs."

Once the concept is complete it will guide future UUV programs -- something the service did not have for its unmanned aircraft efforts. "You can see what's happening in the air, with the result of [Operation Enduring Freedom] -- that war really put a lot of unmanned vehicles in the air, almost jumping out in front of any visionary approach to how they use unmanned vehicles," Tyler said. "We're going about it a little smarter, I think, in the undersea environment, planning a little bit longer path ahead and investing smarter in the systems that we think we'll need to meet the warfighter demands."