The Insider

By John Liang
February 21, 2025 at 2:15 PM

This Friday INSIDER Daily Digest has news on the Army's Armored Multi-Purpose Vehicle, the Pentagon conducting a review of consulting contracts, the F-35 Joint Strike Fighter and more.

The Army doesn't think it needs an additional variant of the Armored Multi-Purpose Vehicle:

Army argues against DOT&E's AMPV recommendation

The Army is making the case it doesn't need to develop a sixth, fire direction-specific variant of its Armored Multi-Purpose Vehicle, going against a recommendation the Pentagon's chief weapons tester has repeatedly put forth.

In a memo issued this week, acting Under Secretary of Defense for Acquisition and Sustainment Steven Morani calls on military component heads to "conduct a comprehensive review and validation of existing contracts for consulting services."

Pentagon to review all consulting contracts for possible budget cuts

The Defense Department, with an eye toward budget efficiency, has begun a review of all contracts for consulting services, according to a new memo from the Pentagon's acting acquisition chief.

Document: DOD memo on review and validation of consulting services contracts

Lockheed Martin's top executive spoke about the F-35 Joint Strike Fighter program this week:

Lockheed CEO: F-35 still 'essential' despite promises of unmanned warfare

Lockheed Martin's CEO doesn't see the F-35 Joint Strike Fighter losing prominence in the U.S. or partner fleet anytime soon, despite some Trump administration officials questioning the jet's usefulness as drones are made more sophisticated.

The head of U.S. Southern Command recently testified on Capitol Hill, warning about growing Chinese influence in the Caribbean region:

SOUTHCOM: China eyeing Caribbean as 'offensive island chain' to threaten U.S. at home

The U.S. military is increasingly concerned that the Caribbean could become an "offensive island chain" for China as Beijing expands its footprint in the region in a way that could increase combat access and potential force projection, jeopardizing the United States' strategic positioning in its own hemisphere.

Document: Senate hearing on SOUTHCOM, NORTHCOM

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

Stakeholders see opportunity to galvanize efforts around implementing CMMC program with Arrington joining DOD CIO office

The hiring of Katie Arrington as the new DOD chief information security officer will bring a renewed focus on getting the Pentagon’s Cybersecurity Maturity Model Certification program fully realized, according to stakeholders who highlighted rulemaking efforts in the final stages and the official launch of the initiative.

By Dominic Minadeo
February 21, 2025 at 11:11 AM

The Army is gearing up to release a request for proposals for its Common Tactical Truck program, tentatively slated for the third quarter of fiscal year 2026, according to a market research survey posted to industry on Feb. 20.

While the milestone is pre-decisional, the Army is also planning two dates to precede the RFP: a draft version to get industry feedback could land in September 2025 and an industry day would follow a month later, in October.

The CTT Family of Vehicles is designed to replace the Army’s Heavy Expanded Mobility Tactical Truck, Pelletized Load System, Line Haul Tractor and Medium Tractor vehicles, according to the latest report from the Pentagon’s director of operational test and evaluation.

“The CTT supports worldwide combat operations and mitigates current TWV gaps in driver safety systems, autonomy, fuel consumption, and predictive maintenance,” according to the Army.

There are six variants planned for the CTT: A Line Haul Tractor, Off-Road Tractor, Load Handling System, Cargo Variant, Tanker Variant and Wrecker Variant. Some of the tasks the vehicles will undertake include “conducting line-haul/local-haul operations, self-load/unloading standard flat racks and containers, and transporting various mission packages to enhance the Combatant Commanders’ operational flexibility,” according to the Army. 

The service wants the truck to be able to perform its missions on primary and secondary roads, trails or “urban terrain,” in any sort of climate and perform effectively in the increasingly “highly contested, more lethal” land and cyber domains, according to the survey.

Competing vendors in the CTT program include Oshkosh Defense, Navistar, Mack Defense and a joint bid from American Rheinmetall and GM Defense, Inside Defense previously reported.

The market research survey includes 62 questions in all, drawing on cost, engineering, manufacturing and logistics concerns, among other topics like past performance, quality control and test and evaluation.

While the Army is still working on its requirements for the vehicle, the expectation is for the CTT to “meet or exceed” legacy requirements and to take advantage of “the commercial industry’s rapidly advancing fields of driver safety systems, cybersecurity, autonomy, improved fuel economy, off-road mobility, and predictive logistics,” the survey says.

The service hopes to transition the CTT program into a major capability acquisition pathway and begin low-rate initial production in FY-28 and is requesting funding to produce 7,217 CTTs by FY-35, according to DOT&E. 

Industry has until noon on March 20 to submit answers to the questionnaire.

By Dan Schere
February 20, 2025 at 5:14 PM

Hoverfly Spectre, a tethered drone produced by Florida-based Hoverfly Technologies, has been added to the Defense Innovation Unit's Blue List, the company announced today.

The Blue List is a compilation of Pentagon-vetted commercial drones that comply with the Fiscal Year 2020 and 2023 National Defense Authorization Acts, as well as the 2024 American Security Drone Act. The drones have been determined to be “cybersecure” and are available for purchase.

The Spectre is a “fully closed-loop tethered system,” which transmits its power and data through the tether. It includes both a variable height antenna as well as intelligence, surveillance and reconnaissance payloads, according to the company. The payloads it can accommodate include counter-UAS sensors and electronic warfare systems.

According to Hoverfly, the Spectre is the first tethered drone to be added to the Blue List. It now holds an "Authority to Operate" across all entities within the Defense Department, according to the company.

Steve Walters, CEO of Hoverfly Technologies, said today that being added to the Blue List is a “monumental step for Hoverfly and the Spectre platform.”

"This achievement reflects our steadfast commitment to providing the DOD with innovative, secure, and compliant tethered UAS solutions that meet the highest standards of reliability and performance,” he said.

By Shelley K. Mesch
February 20, 2025 at 3:31 PM

Pratt & Whitney has completed a detailed design review for its Next Generation Adaptive Propulsion offering for the Air Force, the company announced today.

The XA103 prototype effort can now begin procuring hardware to construct the engine’s ground demonstrator, according to the news release.

“For decades, propulsion has been a key differentiator for the United States, and we are working with the U.S. Air Force to make sure it stays that way,” said Chris Flynn, vice president of Military Development Programs at Pratt & Whitney. “Collaborating with the U.S. Air Force, we have supported every generation of jet engine development since World War II. XA103, our adaptive engine for the future, will continue to advance our digital and agile design and development capabilities while advancing the propulsion capability for the warfighter.”

The engine’s adaptive architecture will allow its components to adjust to optimize fuel efficiency and survivability as well as power and thermal management, according to Pratt, which is a subsidiary of RTX.

Last month, the Air Force awarded Pratt and GE Aerospace indefinite-delivery, indefinite-quantity modification contracts for up to $3.5 billion each to take their respective NGAP engine designs into prototyping.

GE announced yesterday that its XA102 had passed its detailed design review.

NGAP is set to be used in unspecified upcoming aircraft. It has long been tied to the Next Generation Air Dominance platform, but that program has been delayed.

Following a deferral by the previous administration, President Trump’s team is set to make a decision on how or whether to pursue NGAD.

By John Liang
February 20, 2025 at 2:51 PM

Boeing announced today that Jeff Shockey rejoined the company and has been named its new executive vice president of government operations, global public policy and corporate strategy, effective Feb. 24.

Shockey will lead the company's global public policy efforts, including U.S. federal, state and local government operations and sustainability, according to a Boeing statement.

Shockey replaces Ziad Okajli, who left the company last December due to a disagreement with CEO Kelly Ortberg over Boeing's strategy, Politico reported at the time.

Prior to his return, Shockey was the top lobbyist at RTX. His previous Boeing experience included vice president of global sales and marketing for defense, space & security and vice president of federal affairs and international policy for government operations.

He has also served as staff director of the House Permanent Select Committee on Intelligence, staff director and deputy director of the House Appropriations Committee and other senior House staff roles.

By John Liang
February 20, 2025 at 2:08 PM

This INSIDER Daily Digest has news on the Pentagon looking to shift billions of dollars into areas the Trump administration deems most important, plus coverage of the Citi 2025 Industrial Tech and Mobility Conference and more.

The Trump administration is aiming to have the Pentagon shift $50 billion into what it considers higher-priority efforts:

Pentagon to cut FY-26 budget by $50B to re-invest in new priorities

The Defense Department is developing a $50 billion list of budget "offsets" that can be cut from the unreleased fiscal year 2026 spending request and re-invested in new priorities like Iron Dome for America and border security, exempting more than a dozen areas from the review like collaborative combat aircraft, Virginia-class submarines and one-way autonomous drones.

The CEOs from Lockheed Martin and Northrop Grumman spoke this week at the Citi 2025 Industrial Tech and Mobility Conference:

Lockheed CEO: F-35 still 'essential' despite promises of unmanned warfare

Lockheed Martin's CEO doesn't see the F-35 Joint Strike Fighter losing prominence in the U.S. or partner fleet anytime soon, despite some Trump administration officials questioning the jet's usefulness as drones are made more sophisticated.

Northrop CEO: 'Iron Dome for America' could expand uses for existing, developmental capabilities

Northrop Grumman CEO Kathy Warden sees potential from President Trump's Iron Dome for America executive order to expand use cases for existing capabilities and those already in the developmental pipeline.

The head of U.S. Southern Command recently testified on Capitol Hill:

SOUTHCOM: China eyeing Caribbean as 'offensive island chain' to threaten U.S. at home

The U.S. military is increasingly concerned that the Caribbean could become an "offensive island chain" for China as Beijing expands its footprint in the region in a way that could increase combat access and potential force projection, jeopardizing the United States' strategic positioning in its own hemisphere.

Document: Senate hearing on SOUTHCOM, NORTHCOM

The latest CMMC news from our colleagues at Inside Cybersecurity:

Stakeholders see opportunity to galvanize efforts around implementing CMMC program with Arrington joining DOD CIO office

The hiring of Katie Arrington as the new DOD chief information security officer will bring a renewed focus on getting the Pentagon’s Cybersecurity Maturity Model Certification program fully realized, according to stakeholders who highlighted rulemaking efforts in the final stages and the official launch of the initiative.

Some counter UAS news:

Army will soon pick vendor for planned counter UAS C2 system

The Army is gearing up to choose a company that will provide the software for its planned Forward Counter Unmanned Aircraft Systems Command and Control System (FCUAS C2) -- which will succeed its current Forward Area Air Defense Command and Control (FAAD C2).

The engines on the Air Force's F-22 Raptor will be getting a lot of money to stay in top shape:

Pratt & Whitney gets $1.5 billion to sustain F119 engines over next three years

Engine-maker Pratt & Whitney has been awarded up to $1.5 billion to sustain the motors which power the Air Force's F-22 Raptor, the company said in a news release.

On Feb. 14, the Defense Department filed a "status report and notice of corrective action" with the U.S. Court of Federal Claims regarding the Space Development Agency's Tranche 2 Transport Layer Gamma program:

Tournear violated procurement integrity, SDA to rebid portion of T2TL

Space Development Agency Director Derek Tournear violated the Procurement Integrity Act, leading the agency to rebid a portion of its Tranche 2 Transport Layer, according to recent court documents.

Document: DOD's court filing on T2TL Gamma program

By Abby Shepherd
February 20, 2025 at 12:29 PM

The Navy is seeking additional sources for Contractor Owned Contractor Operated (COCO) services meant to provide intelligence, surveillance and reconnaissance via unmanned aerial systems, according to a request for information issued Feb. 5.

UAS ISR services are already being delivered to the Navy by Insitu Inc. and Textron Systems, yet these Basic Ordering Agreements (BOAs) are set to expire in March 2026, leading the Navy to seek out additional sources for fiscal year 2026, according to the RFI.

The notice asks that contractors be able to “produce sensor data, such as trained personnel, non-developmental UAS equipment, certifications, operation and maintenance, spares and product support,” and “be capable of providing ISR services on a normal and surge basis, day and night, 24 hours a day, seven days a week.”

Specifically, the Navy is seeking sources with a technology readiness level of 8, a minimum operational range of 75 nautical miles, an operational endurance of 10 hours, an ability to operate in adverse weather conditions, and a capability to operate in Global Positioning System-denied environments.

The Navy also wants systems that are “capable of providing a communications relay to support extending the range of voice communications for manned aircraft and C2/data for unmanned aircraft and vessels,” that include an air vehicle that can operate on heavy fuels typically found at forward-deployed locations, and that can operate two air vehicles at the same time from one ground control station, among other capabilities, according to the RFI.

The Small Tactical Unmanned Aircraft Systems program office (PMA-263) held an industry day in February 2023, when industry members gathered to share their capabilities on unmanned technology.

Potential contractors are encouraged to submit a capability statement package that includes the technology readiness level of the potential UAS, the system’s anti-jam capabilities, capabilities in a GPS-denied environment, as well as the system’s weather and environmental limitations, the RFI states.

By Vanessa Montalbano
February 19, 2025 at 4:32 PM

A detailed design review of GE Aerospace's Next Generation Adaptive Propulsion option for the Air Force has been successfully completed, the company said today, allowing prototyping to begin.

“With the DDR now complete, GE Aerospace has been awarded the next contract phase to procure, assemble and test an XA102 full-scale demonstrator engine,” GE said in the announcement. “The design review was presented to the U.S. Air Force, showcasing the comprehensive digital engine model and validating its readiness for the next phase of development.”

Late last month, both GE Aerospace and Pratt & Whitney were awarded indefinite-delivery, indefinite-quantity modification contracts of up to $3.5 billion each to carry their NGAP designs into prototyping. At the time of the award, no funds had been released.

“GE Aerospace is making great strides with model-based engineering, which has been instrumental in the success of the XA102 engine design,” Steve Russell, vice president and general manager of Edison Works at GE Aerospace, said in a statement. “As we transition into the procurement and build phase, we will continue to incorporate this innovative approach while working closely with our supply chain partners to advance the engine toward a full-scale demonstration.”

The Air Force has in recent months sought to grow industrial base capacity to produce these kinds of adaptive-cycle engines since only a small number of businesses are capable of building them.

According to GE, the NGAP-type engines are critical to powering future fighter jets because they can support “up to 30% greater range and significantly more thermal management capability compared to today’s most advanced combat engine.”

By John Liang
February 19, 2025 at 1:27 PM

This Wednesday INSIDER Daily Digest has news on countering drone threats, increasing military cooperation between Russia and China, the Pentagon's Cybersecurity Maturity Model Certification program and more.

The general in charge of U.S. Northern Command and North American Aerospace Defense Command testified on Capitol Hill recently:

Pentagon expands efforts to counter drone threats, plans major demonstration in August

The Pentagon is ramping up efforts to counter the growing threat of small unmanned aerial systems (sUAS) with an expanded demonstration of cutting-edge drone defense technologies scheduled for August 2025.

NORAD: Deepened China-Russia military cooperation increases threats to U.S. homeland

The likelihood of direct military conflict between the U.S. and its top adversaries is growing, fueled by deepening strategic cooperation between China, Russia, North Korea and Iran, according to the head of North American Aerospace Defense Command and U.S. Northern Command.

Document: Senate hearing on SOUTHCOM, NORTHCOM

The latest CMMC news from our colleagues at Inside Cybersecurity:

Pentagon officials post guidance for defense agencies to implement CMMC requirements

A recent memorandum from senior Pentagon officials provides guidance on determining assessment levels and the waivers process under the Defense Department's Cybersecurity Maturity Model Certification program.

Document: DOD memo on CMMC implementation requirements

Port Alpha, a planned shipyard, is set to "enable the expansion of Saronic's Autonomous Surface Vessel (ASV) fleet into medium- and large-class autonomous ships for defense applications," according to the company:

Saronic launching 'next-generation shipyard' to support expansion of USV offerings

Maritime defense technology provider Saronic announced today it has closed a nearly $600 million private capital funding round, valuing the company at $4 billion and positioning it to build "a next-generation shipyard" to deliver "new classes of unmanned ships" at speed and scale.

In recent letters to all the military service chiefs, House Armed Services Committee Chairman Mike Rogers (R-AL) and Ranking Member Adam Smith (D-CA) ask all the services to identify obsolete programs that don't enhance U.S. deterrence:

Lawmakers ask Pentagon to deliver lists of possible budget cuts

The Pentagon is being asked to provide senior lawmakers with a list of weapons programs, military infrastructure and processes that could be cut from the budget if they are not aligned with the National Defense Strategy.

Document: House lawmakers' letters on obsolete programs

By Tony Bertuca
February 19, 2025 at 12:34 PM

The Senate Armed Services Committee is slated to hold a nomination hearing on Feb. 25 for billionaire investor Stephen Feinberg to be deputy defense secretary.

Feinberg is the co-founder, co-CEO and chief investment officer for global investment and private equity firm Cerberus Capital Management, with an estimated personal net worth of $5 billion.

Formerly chair of the President’s Intelligence Advisory Board during President Trump’s first term, Feinberg has no previous experience working at the Pentagon, where, if confirmed, he would be charged with overseeing the day-to-day operations of a massive bureaucracy of three million people and a budget of nearly $850 billion.

In the president’s first term, Trump also reached outside the world of national security to fill DOD’s No. 2 role, nominating Boeing executive Pat Shanahan.

Trump has called Feinberg, who is a long-time donor, an “extremely successful businessman” who will “help Make the Pentagon Great Again.”

If confirmed, Feinberg would be the deputy to Defense Secretary Pete Hegseth, a former Fox News host and Army veteran who also had no previous experience working at the Pentagon.

Hegseth, who faced a tough confirmation hearing, was met with uniform opposition by Democrats and lost three GOP votes, forcing an historic tie-breaking vote by Vice President Vance.

Feinberg’s nomination for the No. 2 DOD job has been far less public than Hegseth’s, which involved an active campaign for votes on Capitol Hill. Though it is not unusual for the nomination of the deputy defense secretary to draw less attention than cabinet nominees, previous interviews and reporting about Feinberg have described him as “reclusive.”

While Republicans are expected to support his nomination and can get him confirmed without any Democratic votes, it is unclear what kind of opposition Feinberg might face next week. He is expected to be questioned extensively about potential conflicts of interest stemming from his many defense-related business interests.

Sen. Elizabeth Warren (D-MA), a vocal opponent of most of Trump’s nominees, sent a 23-page letter to the White House earlier this week -- addressed to Feinberg -- noting her “serious concerns” about his qualifications and his possible conflicts of interest as an investor in defense companies.

“These holdings would pose a conflict of interest between your duty as Deputy Secretary to advance the Department’s national security interests and your personal interest in delivering profits for the defense companies in which you or Cerberus have invested,” she wrote.

The White House did not immediately respond to a request for comment.

By Sara Friedman
February 19, 2025 at 11:15 AM

Katie Arrington is returning to the Pentagon in a new role as chief information security officer at the Defense Department Office of the Chief Information Officer, marking a full-circle moment for the former acquisition official who served as the public face of the Cybersecurity Maturity Model Certification program during President Trump's first term.

Arrington announced her new job in a Feb. 19 LinkedIn post with no details on what she will be doing as DOD CISO. She was tapped to lead the development of the CMMC program in July 2019 within the office of the under secretary of defense for acquisition and sustainment, where the CMMC Program Management Office was initially based.

The CMMC program was paused in early 2021 under the direction of then-Deputy Defense Secretary Kathleen Hicks who came in at the start of the Biden administration. Arrington was put on suspension in the summer of 2021 over her alleged sharing of classified information outside of DOD.

Arrington officially resigned in February 2022 from DOD and announced a run for a House seat in South Carolina in the 2022 election cycle. She lost in the primary election to incumbent Rep. Nancy Mace (R-SC) who was selected in the 118th Congress to serve as chair of the House Oversight cyber subcommittee.

Arrington joined supply chain firm Exiger in January 2024 as vice president of government affairs.

The CISO job at the DOD CIO was posted on USAJobs in January after acting DOD CIO Leslie Beavers moved David McKeown into a new job as special assistant for cybersecurity innovation. Sudha Vyas, chief cybersecurity architect at DOD CIO, was made acting DOD CISO and acting principal director for cybersecurity.

In a February 2022 memorandum, Hicks moved the CMMC PMO over to the DOD office of the CIO and eliminated Arrington’s previous job as CISO at A&S. DOD did not respond to a request for comment on Arrington’s new role at the DOD CIO office as of publication time.

By John Liang
February 19, 2025 at 10:15 AM

Jason Albanese has been promoted to Leidos executive vice president and chief growth officer effective March 3, the company announced today.

Albanese will succeed Gerry Fasano, who will retire on April 4.

Albanese is currently the senior vice president of growth for the company’s national security sector, according to a company statement. He joined Leidos in 2017 following the merger with Lockheed Martin's Information Systems and Global Solutions organization. He initially led strategy and business development for the company's defense group, then held similar responsibilities for the health and intelligence businesses before assuming his role in the national security sector last year.

By John Liang
February 18, 2025 at 1:27 PM

This Tuesday INSIDER Daily Digest has news on House lawmakers asking the service chiefs to identify obsolete programs that don't enhance U.S. deterrence, plus unmanned surface vessel coverage and more.

In recent letters to all the military service chiefs, House Armed Services Committee Chairman Mike Rogers (R-AL) and Ranking Member Adam Smith (D-CA) ask all the services to identify obsolete programs that don't enhance U.S. deterrence:

Lawmakers ask Pentagon to deliver lists of possible budget cuts

The Pentagon is being asked to provide senior lawmakers with a list of weapons programs, military infrastructure and processes that could be cut from the budget if they are not aligned with the National Defense Strategy.

Document: House lawmakers' letters on obsolete programs

In November 2024, a meeting between lawmakers and the Navy consisted of discussions on “funding lines required to support the new Modular Attack Surface Craft (MASC), which is a merger of the LUSV/MUSV into a medium-sized USV,” a Navy spokesperson recently told Inside Defense:

Navy considering new USV amid questions over LUSV practicality

A new unmanned surface vessel may result from talks between the Navy and lawmakers, following a year filled with debate over how to phase out larger, more bespoke systems in favor of a streamlined solution -- an effort industry has been heavily involved in as well.

Document: Wicker, Reed letter on the Navy's LUSV program

In related USV news, the Pentagon's latest operational test and evaluation report looks at the Marine Corps' Long-Range Unmanned Surface Vessel program:

LRUSV transitioning to major capability acquisition pathway in FY-27 after pivot from rapid prototyping

The Marine Corps will transition its Long-Range Unmanned Surface Vessel program to the major capability acquisition pathway in fiscal year 2027 following a decision to terminate a middle tier acquisition rapid prototyping effort, according to the latest annual report from the Pentagon's director of operational test and evaluation.

(Read our complete DOT&E report coverage.)

In case you missed it, Inside Defense did a deep dive into Air Force depots' surge capacity in the event of a war in the Indo-Pacific:

Air Force depots can support surge capacity in the Indo-Pacific for 30 days before things get 'interesting'

TINKER AIR FORCE BASE, OK -- Should a conflict between the U.S. and China break out, the Air Force Sustainment Center here could support a roughly 30-day surge before operations of the service's logistics arm get "really, really interesting," the commander said.

The Army recently executed two PrSM Increment 1 engagements during a flight test at White Sands Missile Range, NM:

PrSM Increment 1 notches another success in production qualification test

The Army successfully completed a key production qualification test for its next-generation, long-range strike missile, marking an important advance in the Precision Strike Missile (PrSM) Increment 1 effort, the first part of a planned $8.4 billion acquisition.

By Dan Schere
February 18, 2025 at 5:30 AM

Raytheon completed a series of 10 subsystem tests for the Army's Next-Generation Short-Range Interceptor, which will eventually replace the Stinger missile.

The Army selected Raytheon and Lockheed Martin to develop competing prototypes for the NGSRI program in 2023. The new missile is to have improved target acquisition, range and lethality compared with the Stinger.

During Raytheon’s subsystem demonstrations, the seeker “demonstrated maximum range acquisition” in laboratory and outdoor environments, according to a company announcement Tuesday. Additionally, the flight rocket motor demonstrated it could extend the “intercept range of maneuver short-range air defense engagements.”

Other tests included a demonstration of “enhanced range for operation detection and identification of aerial targets” in low-visibility environments for the NGSRI’s command launch assembly as well as testing of the missile warhead, according to Raytheon.

The Army and Marine Corps will participate in the next phase of the program -- soldier touchpoints, according to Raytheon. And a system flight test demonstration will take place later this year.

By Tony Bertuca
February 17, 2025 at 5:00 AM

Senior defense officials are scheduled to speak at several public events this week.

Monday

Presidents Day.

Wednesday

The Hudson Institute hosts a discussion on Navy shipbuilding.

The Zero Trust Summit is held in Washington.

Thursday

Vice Chief of Space Operations Gen. Michael Guetlein speaks at the Miami Space Summit in Miami, FL.