The Insider

Israel Buys More F-35s
By James Drew
February 23, 2015 at 1:04 PM

Israel will purchase 14 more F-35 Joint Strike Fighters at an average cost of $110 million per aircraft, the country's Ministry of Defense announced in a Feb. 23 press statement.

The deal brings the country's total order for the Lockheed Martin-built jet to 33, and includes an option for 17 more aircraft, according to the statement.

Israel was the first country to join the F-35 program as a foreign military sales customer, with an initial order for 19 aircraft placed in 2010.

This latest deal with the United States was formalized last November, the MOD said.

Israel's first two F-35As are being assembled as part of low-rate initial production Lot 8 and are due for delivery in late 2016.

Unisys Hires CSC Exec
By Marjorie Censer
February 23, 2015 at 12:30 PM

Tom Patterson, the former global general manager of CSC's cybersecurity consulting business, has been named vice president of global security solutions at Unisys, the company said today.

Patterson has also worked at MagTek, Deloitte, KPMG and IBM. He founded Command Information, which was later acquired.

At Unisys, he will oversee the strategy and development of security offerings for both commercial and public sector clients around the world, the company said.

Contractor Pleads Guilty
By Marjorie Censer
February 20, 2015 at 3:52 PM

A former chief executive of a Kuwait-based contractor pleaded guilty to one count of bribery of a public official, the Justice Department said today.

George Lee was the CEO of American Logistics Services, which provided supplies to the U.S. military in Iraq, according to the Justice Department. As part of his plea, he admitted he paid a $15,000 bribe to an Army National Guard officer in exchange for a contract extension to provide buses to the Army, the department said. Sentencing has been scheduled for July 7.

'Buckle Up'
By Tony Bertuca
February 19, 2015 at 2:57 PM

Deputy Defense Secretary Robert Work today advised the Pentagon workforce to “buckle up” for the upcoming tenure of Ashton Carter, who took the helm at DOD this week.

Work, who introduced Cater during an all-hands meeting held in the Pentagon auditorium, called the new secretary “uniquely qualified” to manage the building amid current fiscal obstacles and ongoing global threats.

“Ladies and gentlemen, buckle up,” Work said. “We're in for a heck of a ride over the next two years and it's time for all of us to redouble our efforts.”

Carter, known by many as a creature of the Pentagon, has served 11 different defense secretaries in his previous jobs, which include deputy secretary and chief acquisition executive.

As illustration of how comfortable he was in his return to the Pentagon, Carter said he likely knew at least two-thirds of those gathered in the auditorium by name.

“I look forward once again to be in your ranks and working with you,” he said.

While Carter pledged to do his best to lobby Congress to overturn the automatic budget cuts set to be triggered by sequestration in fiscal year 2016, he noted that DOD must begin doing its part to run leaner and meaner than ever before.

“If we're going to convincingly make the case to our people that they need to spend more on their defense, which I believe they do, we need to, at the same time, show them that we know we can do better at spending that money,” he said.

Carter advised the Pentagon workforce to embrace a future that was more open to change.

“We've very proud of our traditions,” he said. But “for us to excel in today's world and in the future, we have to be open; we have to be open to change.”

Huntington Ingalls Profit Drops
By Marjorie Censer
February 19, 2015 at 10:28 AM

Huntington Ingalls reported Thursday that sales and profit declined in the company's most recent quarter.

The contractor said sales for the three-month period ended Dec. 31 declined very slightly to $1.9 billion, but profit fell more steeply, hitting $52 million. In the same period the prior year, Huntington Ingalls reported profit of $91 million.

The company said it recorded a $47 million impairment charge related to the recent drop in oil prices.

Cubic Restructures
By Marjorie Censer
February 19, 2015 at 10:27 AM

Cubic Corp. has combined its two defense operating segments into a single unit dubbed Cubic Global Defense, the company said this week.

The move is meant to improve profitability and competitiveness and to bolster collaboration. The defense business has about $800 million in annual sales and more than 5,500 employees.

William Toti, who headed Cubic's mission support services unit, has been named president of the new group. He previously led Hewlett-Packard's enterprise services sector for the Navy and Marine Corps Next Generation Enterprise Network program and was vice president of the mission support operations unit at Raytheon.

ManTech Boosts Profit
By Marjorie Censer
February 18, 2015 at 5:00 PM

Defense contractor ManTech International reported today that sales fell in its most recent quarter, but profit grew.

The company said quarterly revenue hit $411 million, down from almost $492 million in the same period a year earlier.

ManTech blamed its lower sales on reduced Army needs in Afghanistan. Work overseas contributed $31 million in quarterly sales, down from $102 million in quarterly sales the prior year.

ManTech's profit for the three-month period ended Dec. 31, however, reached $14.5 million, up from a nearly $66 million loss during the same quarter the prior year.

In a statement, George Pedersen, ManTech's chief executive, said that he expects growth in 2015. "The budget outlook is much brighter, and award activity is slowly returning to normal," he said.

Lockheed Names New CTO
By Marjorie Censer
February 18, 2015 at 4:21 PM

Keoki Jackson has been named Lockheed Martin's chief technology officer, the contractor said Wednesday.

Lockheed also announced that Rod Makoske has been named senior vice president for corporate engineering, technology and operations.

Jackson has been with Lockheed since 1997. Makoske, who has worked at the contractor for 27 years, most recently served as vice president of technical operations in Lockheed's mission systems and training business.

Lockheed held a media event on the same day, in which CEO Marillyn Hewson said the company plans to significantly boost its focus on international sales.

Deloitte: Defense Decline
By Marjorie Censer
February 18, 2015 at 4:17 PM

Global defense spending is expected to decline about 1.3 percent in 2015 because of U.S. military spending cuts, according to Deloitte's global aerospace and defense industry outlook, released Wednesday.

Overall, the report predicts 3 percent growth in the global aerospace and defense industry, thanks to the commercial aerospace sector.

The commercial aerospace business is expected to see nearly 8 percent growth in 2015, the report forecasts, as demand rises.

UTC Hires McBride
By Marjorie Censer
February 18, 2015 at 4:16 PM

Timothy McBride will become United Technologies Corp.'s senior vice president for government relations, starting March 2, the company said Wednesday.

McBride is to succeed Gregg Ward, who will retire later this year. McBride, who will report directly to UTC's chief executive, will lead the company's federal, state and international government relations efforts.

He comes to UTC from Covidien, a health care company, and has worked at DaimlerChrysler, Freddie Mac and Sunoco.

Dentons Expands National Security Team
By Marjorie Censer
February 17, 2015 at 2:24 PM

Law firm Dentons said today it had hired Giovanna Cinelli and Kenneth Nunnenkamp as partners in its U.S. export controls and national security practice.

Both will be based in a new office in Tysons Corner, VA.

The hires are part of a larger effort to bolster Dentons' work in aerospace, defense and technology, the firm said, noting that it also recently added Elizabeth Evans, Deepak Reddy and Del Smith to its aviation practice.

Cinelli specializes in export and government regulatory issues for defense and technology companies and is chairwoman of Women in Aerospace. Nunnenkamp focuses on trade and national security issues and previously served in the Marine Corps as a JAG officer.

Command Change
By Courtney Albon
February 13, 2015 at 2:47 PM

The chief of Air Force Materiel Command Gen. Janet Wolfenbarger announced her retirement today at an Air Force Association conference in Orlando, FL.

Wolfenbarger confirmed her plans to retire while speaking as part of a panel of four-star Air Force generals. Multiple news outlets are reporting that the general will be replaced by Lt. Gen. Ellen Pawlikowski, the former head of the Air Force Space and Missile Systems Center and currently the military deputy in the office of the assistant secretary of the Air Force for acquisition. Of note, Wolfenbarger served in Pawlikowski's position just before taking over the AFMC command post.

Wolfenbarger moved into her current position in June 2012, and her career includes lead positions on the F-22 fighter, B-2 bomber and C-17 airlifter programs.

Hagel -- Out
By Tony Bertuca
February 13, 2015 at 12:48 PM

Outgoing Defense Secretary Chuck Hagel released a farewell message to the "men and women of the Department of Defense" in what is likely his last day at the Pentagon before Ashton Carter is sworn in to succeed him on Tuesday:

As I leave office, I am immensely proud of what we have accomplished together over the past two years.

We have responsibly ended our combat operations in Afghanistan and begun the follow-on mission to preserve our achievements there.

We have bolstered enduring alliances and strengthened emerging partnerships, while successfully responding to crises around the world.

We have launched vital reforms that will prepare this institution for the challenges of the future.

We have fought hard - and made real progress - against the scourge of sexual assault in our ranks.

And after 13 years of war, we have worked to restore our military readiness and ease the burdens on our people and their families.

Through it all, many of you, and your families, coped with shutdowns and furloughs; weathered hiring and pay freezes; and endured long hours and longer deployments. You did so because we each took an oath to defend our nation, our fellow citizens, and our way of life. And you have lived up to your word.

But as you know well, the world is still too dangerous, and threats too numerous. I know you will remain vigilant, continuing your important work under the leadership of Ash Carter.

A special note to our men and women in uniform: of all the many opportunities my life has given me, I am most proud of having once been a soldier. The lessons from my time in uniform about trust, responsibility, duty, judgment, and loyalty - I have carried these with me throughout my life. As your secretary of defense, I have seen those same traits in each of you.

Whether you serve in uniform or as a civilian, you are the reason why our military is the finest in the world and the most admired and most trusted institution in America. Nothing has clarified my thinking, nothing has renewed my hope, and nothing has made me prouder than getting to know, work, and serve with so many of you who have put the nation's interest above your own.

If I had any parting guidance, it would be the same reminder that my drill sergeant, Sgt. 1st Class William Joyce, gave to me after I finished basic training in 1967: "People depend on you. They'll always depend on you."

That was true for me then, and it is true for all of you today. People depend on you - America depends on you - to live up to your oath, to conduct yourselves in keeping with our highest standards, and to perform as the greatest military the world has ever known. After two years serving with you, I am confident you will continue to do so.

You and your families have my deepest gratitude and admiration.

Thank you for your unflagging service and your commitment to this country. May God bless America and each and every one of you.

GD Promotes Flynn
By Marjorie Censer
February 13, 2015 at 11:09 AM

Larry Flynn, president of Gulfstream Aerospace, is set to succeed Joseph Lombardo as executive vice president of General Dynamics' aerospace group as of July 1, the contractor announced today.

Lombardo is set to retire. Mark Burns, president of product support for Gulfstream, will succeed Flynn.

Flynn was named president of Gulfstream in 2011. He also previously served as senior vice president of marketing and sales and president of product support.

Carter Confirmed
By John Liang
February 12, 2015 at 3:11 PM

The full Senate today confirmed Ashton Carter to be the next defense secretary by a 93-5 vote.

Senate Armed Services Committee Ranking Member Jack Reed (D-RI) said in a statement:

I congratulate and welcome Ash Carter as our new Secretary of Defense. Today, the United States Senate gave Secretary Carter a strong, bipartisan vote of confidence. He is an experienced, effective leader.

Secretary Carter takes the helm of the Pentagon at a time when we face critical national security and budgetary challenges. He should hit the ground running as he is well aware and deeply immersed in many of the significant challenges facing this nation and the Defense Department.

Now that he has been confirmed by the full Senate, I look forward to him having a cooperative and consultative relationship with Congress as we work together to strengthen our Armed Forces and alliances, and better align our resources with the important national security challenges ahead.

I also salute outgoing Secretary of Defense Hagel for his leadership at the Pentagon. Chuck is a great person and a dear friend, and I thank him for his boundless commitment to our service men and women.