The Insider

By John Liang
March 6, 2013 at 1:00 PM

Rep. Doug Lamborn (R-CO) is asking why the Missile Defense Agency is furloughing employees rather than making cuts elsewhere in its budget.

In a letter sent yesterday to MDA Director Vice Adm. James Syring, Lamborn writes:

Reportedly the MDA developed a budget scenario under sequestration where furloughs could be avoided and cuts could be taken elsewhere but the agency decided to proceed with furloughs anyway.

The greatest asset of the Missile Defense Agency is its people and I am deeply concerned by the possibility that MDA employees are facing furloughs unnecessarily. If there is a reasonable way for MDA to achieve the savings required by sequestration without imposing furloughs, I hope that furloughs can be avoided.

A statement from Lamborn's office notes that MDA's Missile Defense Integration and Operations Center is located at Schriever Air Force Base, CO.

By Lee Hudson
March 5, 2013 at 9:53 PM

Pentagon acquisition chief Frank Kendall told the National Defense Industrial Association yesterday that due to sequestration kicking in the Defense Department will likely be buying less equipment and signing fewer service contracts through the end of fiscal year 2013.

"To the extent we can continue operations while delaying and deferring new obligations until the uncertainty is resolved, we will do so," Kendall said in a letter to retired Air Force Lt. Gen. Lawrence Farrell, the president of NDIA.

Kendall said the funding reductions the department will absorb "will affect the full range of the Department's planned contract and grants and adversely affect the efficiency with which we acquire goods and services."

NDIA's member companies can expect to be contacted by DOD officials about specific decisions, according to Kendall.

"Now, more than ever, the Department and industry need to work together to identify courses of actions that will minimize the negative impacts that will inevitably result from sequestration and, wherever possible to preserve options should sequestration be reversed or modified," he added.

By John Liang
March 5, 2013 at 9:18 PM

The Senate Intelligence Committee today approved John Brennan to be CIA director by a 12-3 vote, sending his nomination to the full Senate.

"The vote came one day after Committee Chairman Dianne Feinstein (D-Calif.) reached an agreement with the White House to provide legal opinions on the targeted killings of Americans," according to a panel statement.

"I hope the Senate acts quickly to confirm" Brennan, committee Chairwoman Dianne Feinstein (D-CA) said in the statement, adding:

He draws on a deep well of experience -- 25 years as a CIA analyst, chief of station, manager, head of counterterrorism efforts and White House homeland security advisor. John was straightforward with the committee, answering all of our questions, and I believe he will be a candid partner at CIA and a strong leader of that critically important agency. No one is better prepared to be CIA director than Mr. Brennan. The CIA needs a confirmed director, and Majority Leader Reid is committed to moving quickly to schedule a vote.

Two issues unrelated to John Brennan delayed this vote -- additional details on the Benghazi attack and access to OLC opinions on targeted killings of American. I believe both of those issues have been addressed. The information I requested with Vice Chairman Chambliss on Benghazi has been or is being delivered, and just last night I reached an agreement with the White House to review all OLC opinions on targeted killings of Americans. It was unfortunate these issues delayed the process, but I am confident that they have been resolved.

By Christopher J. Castelli
March 5, 2013 at 7:26 PM

Pentagon Comptroller Robert Hale said today that the Defense Department probably will have to create "a new strategy" to replace the Defense Strategic Guidance that was released by President Obama a year ago, but when pressed afterward he clarified that he believes officials will revise the 2012 guidance, not rewrite it from scratch.

During an Aviation Week conference, Hale told the audience that formal work on creating the new strategy has not yet begun. He said it could be created in the context of the Quadrennial Defense Review process, but added that the strategy would be needed before the QDR process culminates in the release of a report to Congress early next year. As he was leaving the event, however, he told reporters he believes the Defense Strategic Guidance will be revised, not tossed out and replaced with something entirely new.

"I think we're going to have to revise it if we see these kinds of cuts," Hale said. Asked how extensive the revisions might be, he added, "I don't know. I'm not the strategy guy. I'm the budget guy." On Monday, Maj. Gen. Kenneth McKenzie, the Marine Corps' lead officer for the QDR, said the review should be steered by an up-front assessment of how diminishing resources might force the Obama administration to revise or rewrite its defense strategy. The QDR will help DOD assess the affordability of the Defense Strategic Guidance, but it will not be the means of devising a new strategy if one is needed, McKenzie said.

By Tony Bertuca
March 5, 2013 at 7:08 PM

Army leaders have sent out a service-wide message urging soldiers and civilians to remain focused on their missions and preserve their “espirt de corps” despite the $18 billion fiscal crisis barreling toward them.

The message, which was signed by Secretary John McHugh, Chief of Staff Gen. Raymond Odierno, and Sergeant Major of the Army Raymond Chandler, was distributed via email and the service's website yesterday evening.

“As you are aware, sequestration went into effect on Friday, March 1st,” the message begins. “This fiscal year alone, we face the potential of at least an $18 billion dollar shortfall in our Operations and Maintenance accounts, due to the combined impacts of sequestration, the continuing resolution and contingency funding. These are the funds that allow us to support operations, maintain readiness and pay our civilian workforce.”

The Army is referring to the current fiscal challenge as the “6-6-6” budget crisis. Those numbers stand for the $18 billion operation and maintenance funding shortfall the service faces in FY-13: a $6 billion gap brought on by sequestration, a $6 billion shortfall attributed to a congressional continuing resolution, and $6 billion in greater-than-expected warfighting expenses in Afghanistan. Another $6 billion would be cut from other accounts due to across-board sequestration, but the Army is not using that amount in its "6-6-6" messaging, as Inside the Army reports this week.

The service-wide message encourages soldiers and civilians to “remain focused on the fundamentals” as Army leaders handle the fiscal situation in Washington.

“Develop your soldiers, civilians and our future Army leaders; conduct tough, realistic mission-focused training; maintain and account for your equipment; be good stewards of your resources; and sustain the high level of esprit de corps in your organization,” the message states. “Our top priority is to ensure that our forces defending the homeland, those in Afghanistan and Korea, and those next to deploy and rotate into theater, have the resources required to execute their missions. We also recognize that along with risks to readiness, sequestration will also bring particular hardship to our civilian workforce.”

The Army leaders write that they will share information as it becomes available and that soldiers and civilians can expect to be updated at their various installations in the months ahead to “facilitate a dialogue and listen to your concerns and those of your family members.”

The authors close by urging soldiers and civilians to see the current challenge as “an opportunity to demonstrate, once again, our commitment to selfless service and our profession. . . . Army Strong!”

By John Liang
March 5, 2013 at 4:28 PM

Senate Armed Services Committee Chairman Carl Levin (D-MI) and Ranking Member James Inhofe (R-OK) today announced their appointments to the independent panel that will provide outside analysis of the Pentagon's 2014 Quadrennial Defense Review.

Levin has appointed retired Marine Corps Gen. James Cartwright and former Under Secretary of Defense for Policy Michèle Flournoy, while Inhofe's appointments are retired Air Force Gen. Gregory Martin and retired Army Lt. Gen. Michael Maples.

"General Cartwright and Michèle Flournoy enjoy exceptionally high respect throughout U.S. and international security policy communities for their life-long experience, deep understanding, and commitment to keeping America strong and safe," Levin said in a committee statement, adding: "Their contributions to the independent panel's assessment of the Defense Department's strategic review will help ensure that the entire process provides Congress and the nation with the best possible security analysis and recommendations as we continue to anticipate and adapt to these challenging times."

"The many years of military service, defense policy experience, and deep understanding of national security issues Gen. Martin and Lt. Gen. Maples bring will be invaluable to the panel as it evaluates the department's review of the strategic environment and makes its recommendations to adapt policies, programs and strategy for the challenges our national defense needs to address in the years ahead," Inhofe said in the same statement.

The statement further reads:

In requiring the QDR, Congress called for establishment of an independent panel of civilian experts to review the Defense Department's work. The independent panel is required to review the department’s force structure and resource recommendations and, within three months of the QDR's completion, to submit an assessment of the QDR to the congressional defense committees.

The 10-member independent panel is to include two appointees each from the chair and ranking members of the Senate and House defense committees, and a chairman and vice chairman appointed by the secretary of defense.

The QDR is a congressionally mandated, once-every-four years review of national defense strategy, force structure, modernization plans, infrastructure, budget plans and other elements defense policy. The 2014 QDR will be the fifth since Congress established the requirement in the National Defense Authorization Act for Fiscal Year 1997.

Check out InsideDefense.com's latest coverage of the upcoming QDR:

General: Defense Strategy Assessment Needed To Steer QDR
(DefenseAlert -- 03/04/2013)

Senior Official: Panetta Plans To Leave QDR Guidance To Hagel
(DefenseAlert -- 02/21/2013)

Official: Budget, Force Structure, Sizing May All Be QDR Topics
(Inside the Navy -- 01/28/2013)

By Lee Hudson
March 4, 2013 at 4:40 PM

One day after the law imposing sequestration kicked in, Navy Secretary ray Mabus laid out how the service will take immediate action in response to that law and the prospect of a yearlong continuing resolution.

Next month the Navy will shut down a carrier air wing and begin preparations to stand down at least three additional air wings, with two more slated to be reduced to minimum safe flying levels by the end of the year, he said in a March 3 message to the service.

The service will defer the deployment of the hospital ship Comfort to Central America and South America, will cancel or defer the deployments of up to six ships to various theaters around the world, will lay up four combat logistics force units in U.S. Pacific Command and will bring some ships home from deployment early, according to Mabus' message.

Mabus directs the Navy to begin negotiating contract modifications for any investment programs where the remaining unobligated balance will be insufficient after the sequestration reduction is applied. Major programs affected include Virginia-class submarine advance procurement, reactor power units and the Joint High Speed Vessel.

The Marine Corps will begin final planning to slow depot maintenance activities including reductions in non-permanent workforce. Also, the service will cease new enrollments in voluntary education tuition assistance, he wrote. On March 2, Marine Corps Commandant Gen. James Amos sent out a similar sequestration letter covering his service's planned sequestration actions.

The March introductory flight screening for future pilots and naval flight officers is canceled. The Navy will also cancel Blue Angels shows scheduled in April, which include MacDill Air Force Base, FL, Naval Air Station Corpus Christi, TX, Vidalia, GA and Marine Corps Air Station Beaufort, SC.

Navy recruiting media support is canceled in March and the service will reduce the majority of advertising contracts under contractual conditions.

“Navy department leadership understands the uncertainty that these and other decisions create both amongst our people and in the defense industry upon which we rely,” Mabus wrote. “The lack of legislative solution to avoid sequestration is deeply regrettable.

“That said, we must endeavor to deal with the situation as we face it, not as we wish it could otherwise be,” he added.

By Christopher J. Castelli
March 4, 2013 at 1:47 PM

The White House's Office of Management and Budget released a report on sequestration Friday evening, providing calculations of the amounts and percentages by which various budgetary resources are required to be reduced, and a listing of the reductions required for each non-exempt budget account.

"The cuts required by sequestration will be deeply destructive to national security, domestic investments and core government functions," the report states, noting there will be "a reduction in readiness of many non-deployed units, delays in investments in new equipment, cutbacks in equipment repairs and needed facility maintenance, disruptions in military research and development efforts, significant reductions in weapons programs, and furloughs of most civilian employees for a significant amount of time."

By Tony Bertuca
March 1, 2013 at 7:55 PM

The Defense Department announced today that Germany-based elements of the Army's 173rd Airborne Brigade Combat Team will relocate within Germany and to Italy in summer 2013, and also detailed a number of units that will be inactivated and returned to the United States by 2015.

A total of four battalions will be relocated.

“Two battalions will relocate from Germany to Italy; the brigade’s headquarters battalion and one infantry battalion will relocate to Caserma Ederle in Vicenza, Italy, and to the Army’s new facility in Del Din [formerly known as Dal Molin] in Vicenza,” according to DOD's announcement. “The other two battalions will relocate from Schweinfurt and Bamberg, Germany, to Grafenwoehr, Germany.”

The notice also states that, along with the previously announced inactivation of V Corps Headquarters and the 170th and 172nd Infantry Brigades, other forces will also be inactivated:

In 2013:

535th Engineer Company, Warner Barracks, Bamberg, Germany – Inactivates

12th Chemical Company, Conn Barracks, Schweinfurt, Germany – Inactivates

V Corps Headquarters, Clay Kaserne, Wiesbaden, Germany – Inactivates

172nd Infantry Brigade, Grafenwoehr, Germany – Inactivates

Headquarters and Headquarters Company, 391st Combat Service Support Battalion, Warner Barracks, Bamberg, Germany – Inactivates

B Detachment, 106th Finance Company, Katterbach Kaserne, Ansbach, Germany – Inactivates

42nd Engineer Company, Warner Barracks, Bamberg, Germany – Returns to the United States.

99th Movement Control Team, Aviano Air Base, Italy – Returns to the United States.

In 2014:

Headquarters, 18th Engineer Brigade, Conn Barracks, Schweinfurt, Germany – Inactivates

243 Engineer Detachment, Conn Barracks, Schweinfurt, Germany – Inactivates

54th Engineer Battalion, Warner Barracks, Bamberg, Germany – Inactivates

370th Engineer Company, Warner Barracks, Bamberg, Germany – Inactivates

7th Signal Brigade, Ledward Barracks, Schweinfurt, Germany – Inactivates

72nd Signal Battalion, Ledward Barracks, Schweinfurt, Germany – Inactivates

Headquarters and Headquarters Detachment, 95th Military Police Battalion, Sembach Kaserne, Kaiserslautern – Inactivates

630th Military Police Company, Warner Barracks, Bamberg, Germany – Inactivates

464th Military Police Platoon, Camp Ederle, Italy – Inactivates

511th Military Police Platoon, Livorno, Italy – Inactivates

541st Engineer Company, Warner Barracks, Bamberg, Germany – Returns to the United States.

In 2015:

230th Military Police Company, Sembach Barracks, Kaiserslautern, Germany – Inactivates

3rd Battalion, 58th Aviation Regiment (Airfield Operations Battalion), Storck Barracks, Illesheim, Germany – Returns to the United States.

In 2016:

69th Signal Battalion, Grafenwoehr, Germany – Inactivates

525th Military Police Detachment (Military Working Dogs), Baumholder, Germany -- Returns to the United States.

1st Battalion, 214th General Support Aviation Regiment structure is reduced at Clay Kaserne, Wiesbaden, by 190 soldier spaces and at Landstuhl Heliport by 50 soldier spaces.

By John Liang
March 1, 2013 at 5:16 PM

Senior service officials were on Capitol Hill yesterday talking about the impact of funding cuts on individual weapons programs. Our coverage:

General: Sequestration Will Force Marines To Choose Between JLTV, MPC

The Marine Corps will have to choose between the Joint Light Tactical Vehicle and the Marine Personnel Carrier if sequestration is implemented, according to a service official.

Sequester To Cut Air Force's F-35A Purchase By Up To 5 Jets

The Air Force expects to cut its procurement of the Joint Strike Fighter this fiscal year by as many as five aircraft as a result of sequestration, a top service official said today.

View the prepared testimony from yesterday's hearing.

By Gabe Starosta
February 28, 2013 at 10:32 PM

The Defense Department today awarded Lockheed Martin a contract worth more than $300 million to buy long-lead parts for Lot 8 of the Joint Strike Fighter program, hours ahead of sequestration's implementation date. The award will fund materials and components needed to build 35 F-35 jets, among them 29 aircraft for the United States Air Force, Marine Corps and Navy. The remaining six aircraft funded here will belong to the United Kingdom and Norway.

The DOD contract announcement:

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $333,786,000 fixed-price-incentive (firm-target), advance acquisition contract to provide long lead-time parts, materials and components required for the delivery for the 35 Low Rate Initial Production lot VIII F-35 Lightning II Joint Strike Fighter aircraft: 19 conventional takeoff and landing (CTOL) aircraft for the U.S. Air Force; six short takeoff vertical landing (STOVL) aircraft for the U.S. Marine Corps; four Carrier Variant aircraft for the U.S. Navy; four STOVL for the United Kingdom; and two CTOL aircraft for the Government of Norway. Work will be performed in Fort Worth, Texas, and is expected to be completed in February 2014. Contract funds in the amount of $333,786,000 are being obligated on this award, none of which will expire at the end of the current fiscal year. This contract combines purchases for the U.S. Air Force ($155,190,000, 46 percent); the U. S. Marine Corps ($85,380,000, 26 percent); and the U.S. Navy ($27,470,000, 8 percent); the United Kingdom ($45,037,000, 14 percent); and Norway ($20,709,000, 6 percent). This contract was not competitively procured pursuant to the FAR 6.302-1. The Naval Air Systems Command, Patuxent River, Md., is the contracting authority (N00019-13-C-0008).

In a statement released late this afternoon, Lockheed spokeswoman Laura Siebert said:

Lockheed Martin is pleased to be awarded long lead funding for the eighth F-35 Low Rate Initial Production contract, known as LRIP 8, by the Department of Defense. This award provides our supplier base the stability needed to properly execute on our future production commitments. We will continue to drive down costs for these future aircraft as we have done on every previous LRIP contract.

By John Liang
February 28, 2013 at 4:42 PM

The Aerospace Industries Association has established a new, cybersecurity-centered "National Aerospace Standard," according to an AIA statement issued this morning.

"National Aerospace Standard NAS9924, 'Cyber Security Baseline' provides guidance that benefits the aerospace and defense suppliers of all capability levels by giving the supply chain a base line of standard practices they can follow to better protect their information system infrastructures from cyber threats," the statement reads.

"We're very proud to announce this first National Aerospace Standard on cyber security," AIA President and CEO Marion Blakey said in the statement. "It will benefit the entire industry through education and increasing security throughout the supply chain. As our nation's leaders work to counter increasing cyber security challenges, industry looks forward to supporting their efforts and assuring we remain Second to None in the cyber domain as well as in aerospace."

According to AIA's abstract of the document (available for purchase on the AIA website):

The new standard provides information for companies to assess themselves on their information technology security practices and helps them determine their preparedness for cyber threat risk management for their customers while assessing the risks presented by their own suppliers.

Supply chain companies are important to the aerospace and defense industrial base. Suppliers may have unique capabilities that are vital to aerospace and defense programs.

Aerospace and defense companies have been dealing with the threat of cyber intrusion for the past several years. As companies have increased the security of their IT network defenses, the attackers are now being driven to softer targets where they may find some of the same type of data that they previously had sought from these companies. The adversary is also using the collaborative relationships between the aerospace and defense companies and their suppliers as a "back door" as the defenses get better. Companies further down the supply chain may not have had the opportunity or expertise necessary to fully prepare to defend their systems from these attackers, but the result of the increased defenses in the major suppliers is that the attacker may target their suppliers based on their vulnerabilities. This document was designed to be a supplier baseline so that suppliers know what kind of security they need to have if they want to do business with aerospace and defense companies.

The document, according to AIA, "provides basic information" that an aerospace/defense supplier can use to:

* assess themselves on their information technology security practices;

* determine their preparedness for cyber threat risk management for their customer; and

* assess the risks presented by their own suppliers.

Last Friday, InsideDefense.com reported that a senior Pentagon official has called on lawmakers to pass legislation to create and enforce standards for companies to strengthen their networks against cybersecurity attacks. Further:

"I believe that there has to be some aspect of best practices that Congress nudges the private sector to raise their game on this," Eric Rosenbach, the deputy assistant secretary of defense for cyber policy, said today at an Armed Forces Communications and Electronics Association cybersecurity symposium.

Rosenbach added that a lot of industry leaders still might not understand the magnitude of the threat or are not willing to put up the extra investment to protect their companies.

He noted the relative ease with which hackers can look for network vulnerabilities on the Internet. "There's someone out there who has been sloppy, probably inadvertently sloppy, but they're not doing what they should do to keep their kind of game high and have a good defensive posture," Rosenbach said.

Read the full story.

Additionally, Inside the Pentagon reported last week that while the Department of Homeland Security has the lead in securing critical U.S. infrastructure against cyber attacks, the administration is looking to the Defense Department to play a key though less prominent role in advancing the goals of an executive order recently signed by the president. ITP further reported:

DOD, the largest cabinet agency, is expected to bring to bear expertise in acquisition and information sharing -- skills deeply ingrained in day-to-day operations at the Pentagon, though sometimes with mixed results. Defense officials, together with the General Services Administration, have 120 days to craft a report on the role security standards would play in acquisition planning and contract administration.

The final version of the executive order, dated Feb. 12, no longer contains a passage from a widely circulated November 2012 version that instructed DOD to consider "changing the federal procurement process" to give preference for vendors meeting given cybersecurity standards. The omission touches on a discussion within the defense acquisition community where divvying up the supply chain into vendors meeting certain qualifications and those that do not has routinely occurred.

Jim Lewis, director of the technology and public policy program at the Center for Strategic and International Studies, says the practice would be difficult to apply for acquisitions related to critical infrastructure because monopolies -- for utilities, as an example -- are common in that market segment. "It's hard to get meaningful acquisition improvement in critical infrastructure without legislation," he said.

Read the full story.

By John Liang
February 28, 2013 at 4:14 PM

A new Congressional Research Service report predicts that "there may be a renewed focus" in the new Congress on how far Congress can go to legislate limits on the president's ability to conduct military operations in places like Afghanistan, Yemen or Somalia, among others.

The Feb. 19 report -- originally obtained by Secrecy News -- notes that "controversy continues over the appropriate role that Congress should play in regulating U.S. military operations against foreign entities. U.S. action against Libya reignited consideration of long-standing questions concerning the President’s constitutional authority to use military force without congressional authorization, as well as congressional authority to regulate or limit the use of such force."

CRS states:

This report begins by discussing constitutional provisions allocating war powers between Congress and the President, and presenting a historical overview of relevant court cases. It considers Congress's constitutional authority to end a military conflict via legislative action; the implications that the War Powers Resolution or the repeal of prior military authorization may have upon the continued use of military force; and other considerations which may inform congressional decisions to limit the use of military force via statutory command or through funding limitations. The report discusses Congress’s ability to limit funding for U.S. participation in hostilities, examining relevant court cases and prior measures taken by Congress to restrict military operations, as well as possible alternative avenues to fund these activities in the event that appropriations are cut. The report then provides historical examples of measures that restrict the use of particular personnel, and concludes with a brief analysis of arguments that might be brought to bear on the question of Congress's authority to limit the availability of troops to serve in ongoing military operations. Although not beyond debate, such limitations appear to be within Congress's authority to allocate resources for military operations.

View the full report.

View InsideDefense.com's extensive trove of defense-related CRS reports.

By Christopher J. Castelli
February 27, 2013 at 1:35 PM

On his first day on the job, Defense Secretary Chuck Hagel will meet privately with senior defense officials and speak publicly with service members and civilian employees at the Pentagon.

Hagel was scheduled to arrive at the building at 7:30 a.m; at 8:15 a.m., Hagel was slated to take the oath of office in a private ceremony attended by family members and his immediate office staff. "Secretary Hagel will then host the daily senior staff update meeting attended by civilian and military leaders of the department," according to a statement released by the Pentagon.

And at 10:30 a.m., Hagel is scheduled to make remarks in the Pentagon's auditorium, which will be open to the media and webcast live by the department. In the afternoon, Hagel is due to meet with the service secretaries and attend meetings at the White House.

"I will be counting on Chuck’s judgment and counsel as we end the war in Afghanistan, bring our troops home, stay ready to meet the threats of our time and keep our military the finest fighting force in the world," President Obama said in a statement last night after the Senate narrowly confirmed Hagel by a vote of 58-41.

By John Liang
February 26, 2013 at 10:01 PM

With three days to go before sequestration kicks in, the full Senate just confirmed former Sen. Chuck Hagel's (R-NE) nomination to succeed Leon Panetta as the next Defense Secretary. The Senate Armed Services Committee had approved Hagel's nomination on Feb. 12.

While as of this writing voting was still ongoing, Hagel had already garnered enough votes to secure his post. (UPDATE: The final vote tally was 58-41.)