The Insider

By Christopher J. Castelli
November 5, 2013 at 12:23 PM

Defense Secretary Chuck Hagel will lay out six priorities for budget and strategy deliberations in a speech this morning at the Center for Strategic and International Studies, according to a senior defense official.

"This is Secretary Hagel’s second speech focused on how the Department of Defense must adapt to a changing strategic and fiscal landscape, picking up on the themes of his April National Defense University address," the official said. "The speech this morning reflects clear guidance -- in particular six priorities -- that Secretary Hagel discussed with the Service Chiefs and Combatant Commanders at their meeting last week."

The priorities are informed by lessons learned from the Strategic Choices and Management Review and will serve as inputs to the fiscal year 2015 budget proposal and the upcoming Quadrennial Defense Review, the official said. Hagel will also provide his take on emerging national security challenges and the role DOD should play in U.S. foreign policy goals.

“With the end of the Iraq war and the winding down of the combat mission in Afghanistan, President Obama has been moving the nation off a perpetual war footing -- one in which America’s priorities, policies, and relationships around the world were dominated by the response to 9/11," Hagel will tell the audience, according to excerpts released by the Pentagon.

“No other nation has the will, the power, the capacity, and the network of alliances to lead the international community," the excerpts state. "However, sustaining our leadership will increasingly depend not only on the extent of our great power, but an appreciation of its limits and a wise deployment of our influence.”

By Christopher J. Castelli
November 1, 2013 at 12:58 PM

Israel will buy six V-22 Osprey tiltrotor aircraft, Defense Secretary Chuck Hagel announced Thursday night in a speech to the Anti-Defamation League.

Israel would be the the first foreign country to acquire Ospreys.

Hagel has directed the Marine Corps to expedite the order, meaning Israel will acquire the aircraft from the next order to go onto the assembly line and the Marine Corps will recoup its aircraft at a later date. Hagel also said Israel’s Osprey’s will be compatible with Israel’s other defense capabilities. The Pentagon anticipates Israel will begin taking delivery of its Ospreys, which will be modified to meet specific Israeli military requirements, in about two years.

The Ospreys will give Israel’s military “long-range, high speed, maritime and search and rescue capabilities” to deal with “threats emanating not only from Iran, but also stemming from the civil war in Syria, recent instability in the Sinai, and maritime challenges facing Israel,” a senior defense official said.

By John Liang
October 31, 2013 at 8:05 PM

The Senate Armed Services Committee this afternoon approved 394 pending military nominations in the Army, Navy and Air Force as well as several civilians, among them Jamie Morin as director of the Pentagon's cost assessment and program evaluation office.

In response to advance policy questions submitted to the committee earlier this month, Morin -- up until now the Air Force's comptroller -- said he plans to review the organization's workforce, which has been singled out as a problem area since its inception.

If confirmed, Morin said, he would move to review the size, shape and organization of the CAPE workforce "in detail to ensure the organization is aligned to meet current and future needs." As Inside the Pentagon reported Oct. 17:

CAPE was established by the 2009 Weapon Systems Acquisition Reform Act to "provide independent analysis and advice" to senior defense officials on a variety of issues -- including cost estimation and cost analysis for major defense acquisition programs and major automated information systems. CAPE replaced the department's now-defunct Program Analysis and Evaluation office.

However, CAPE has struggled to build up a staff suited to perform its expanded responsibilities. And now the tight fiscal environment may force the office, along with other agencies across the department, to reduce staffing and resources, such as money for federally funded research and development centers, Morin wrote.

"If confirmed, I expect to immediately undertake a review of the organization and its ability to fully meet statutory requirements, with the goal to provide clear recommendations regarding changes to organizational structure and additional resource demands," Morin said. "Given the significant statutory responsibilities under WSARA and the relatively limited growth of CAPE staffing since its enactment, I plan to be both an active manager of organizational resources and a strong advocate for the organization's mission."

Last year, CAPE launched a data-gathering effort on the workforce size, grade, demographics, and education and experience levels, according to a spring report signed by CAPE's then-director Christine Fox.

Other nominations approved by the committee today include:

Michael Lumpkin to be assistant secretary of defense for special operations and low-intensity conflict;

Jo Ann Rooney to be under secretary of the Navy; and

Kenneth Mossman to be a member of the Defense Nuclear Facilities Safety Board.

By John Liang
October 31, 2013 at 6:54 PM

The intelligence community has (reluctantly?) disclosed how much money it received from Congress this year, as directed by law. According to a statement released this week by the office of the director of national intelligence:

Consistent with 50 U.S.C. 3306(b), the Director of National Intelligence is disclosing to the public the aggregate amount of funds appropriated by Congress to the National Intelligence Program (NIP) for Fiscal Year 2013 not later than 30 days after the end of the fiscal year.

The aggregate amount appropriated to the NIP for Fiscal Year 2013 was $52.7 billion, which was reduced by the amount sequestered to $49.0 billion.

As usual, however, the DNI is unlikely to go into any further detail beyond that aggregate number:

Any and all subsidiary information concerning the NIP budget, whether the information concerns particular intelligence agencies or particular intelligence programs, will not be disclosed. Beyond the disclosure of the NIP top-line figure, there will be no other disclosures of currently classified NIP budget information because such disclosures could harm national security. The only exceptions to the foregoing are for unclassified appropriations, primarily for the Community Management Account.

UPDATE 4:50 p.m.: The Pentagon also released its intel funding numbers. Here's the statement:

The Department of Defense released today the Military Intelligence Program (MIP) appropriated top line budget for fiscal 2013. The aggregate amount appropriated to the MIP was $19.2 billion, which was reduced via sequestration to $18.6 billion in compliance with the Budget Control Act of 2011.

The department determined that releasing this top line figure does not jeopardize any classified activities within the MIP. No other MIP budget figures or program details will be released, as they remain classified for national security reasons.

By John Liang
October 31, 2013 at 12:00 PM

The Pentagon released a report to Congress this week assessing the impact of corrosion on Defense Department facilities and infrastructure.

"The enclosed facilities and infrastructure corrosion evaluation study identified key corrosion cost drivers, assessed a planned facility construction program, and examined documentation of maintenance and facility engineering processes in regards to corrosion," Defense Department acquisition chief Frank Kendall writes in the cover letter to the leaders of the House and Senate Armed Services committees.

While the report's evaluation team "found the military services are doing what they can in the areas of corrosion prevention and control (CPC) . . . opportunities for improvement exist throughout DOD," the report states, adding: "The study team also noted that corrosion is often perceived as rust and oxidation of metals, rather than the more comprehensive definition in congressional language. Discussions of corrosion challenges became more fruitful after a clear definition of corrosion was understood. That lack of awareness did not diminish the compelling need of the facilities and infrastructure community to address materials degradation."

Among the report's main findings:

* The study team identified key cost drivers using maintenance databases. These cost drivers were then confirmed during site visits. Policy makers and facilities maintainers can use these cost drivers as a reference point for addressing strategic enhancements in the sustainment of their installations.

* Installations located in severe environments (as measured by the Environmental Severity Index, or ESI) are subject to greater corrosion costs, as indicated by a recent cost-of-corrosion study.

* After an extensive review of DoD facilities and infrastructure policies and criteria5 in relation to corrosion mitigation, the study team compiled a list of guidance documents that specifically address CPC in the acquisition, development, and long-term management of DoD facilities and infrastructure. The study team noted considerable variability in the awareness and implementation of these CPC policies and guidance.

* Congress requested an assessment of a planned facility construction program. The D, CPO selected a construction program in an extreme ESI to assess CPC considerations during the planning, design, and construction phases. The study team noted that several design-phase requirements from that project included CPC material and installation criteria that were drawn from established DoD guidance and the experiences of the design community. The study team's assessment demonstrated that appropriate CPC planning and decisions made during the planning phase directly enhance a facility’s life cycle—a good model of military construction from a CPC perspective.

* Maintenance and facility engineering processes in relation to CPC vary to some degree from installation to installation; however, most sites included in the study had similar CPC processes and practices, despite differences in mission and facility objectives.

* Resource constraints were a consistent concern at all sites included in the study. Compliance with required programs (such as Leadership in Energy and Environmental Design [LEED], Anti-Terrorism Force Protection, and the National Historic Preservation Act of 1966) reduces the funding an installation commander has available to eliminate or control the negative effects of corrosion.

* The study team noted several opportunities to improve the content and delivery of CPC training for the facilities and infrastructure community. Increased on-the-job and formal CPC training of facilities and infrastructure personnel would result in better corrosion-related decision making and help balance investments in preventive and corrective maintenance.

* Corrosion mitigation technology in the buildup of future facilities is purposefully explored by the military services, with some research and development funding provided by the D, CPO. The study team found that installations are reluctant to implement all but the most mature technologies, because of the inherent risk of failure and fear of losing scarce resources. These concerns can be alleviated somewhat; only proven and mature corrosion mitigating technologies are transitioned into the design and construction criteria.

* The process of transitioning new technology into criteria can be cumbersome and time consuming, resulting in large time lags before the new technology can be easily included in a contract.

* The study team believes better cross-installation communication would improve the dissemination and sharing of CPC best practices and accelerate the acceptance and implementation of new technologies.

* Effectiveness of contracting for facilities and infrastructure maintenance and repair varied across the services and installations. Where contracting personnel were familiar with facilities and infrastructure requirements, better CPC outcomes were achieved. Where contracting personnel were not familiar with facilities and infrastructure requirements, improved outcomes were not achieved. User involvement in the contracting process (from public works and engineering staff) improved the identification of CPC requirements and delivery of effective contracting solutions.

By Gabe Starosta
October 30, 2013 at 3:30 PM

The White House today announced the nomination of Bill LaPlante, the Air Force's principal deputy acquisition executive, to take over the long-vacant position of service acquisition executive.

LaPlante is fairly new to the deputy post -- he started the job in May after coming over from the MITRE Corporation, and before that the Johns Hopkins University Applied Physics Laboratory -- and his promotion would fill a critical, Senate-confirmed position that has been empty since 2009.

Moving LaPlante into the Air Force's top acquisition job would ease the burden on the service's acting secretary, Eric Fanning, because some acquisition-related activities can only be accomplished by Senate-confirmed appointees. However, senior service officials have long articulated the need for a full complement of acquisition decision-makers -- a civilian acquisition executive, his or her deputy, and a military deputy -- and LaPlante's promotion, if approved by the Senate, would still leave one of those three posts vacant.

Lt. Gen. Charles Davis has been serving in that military deputy position since May 2012, according to his official biography.

By Sebastian Sprenger
October 29, 2013 at 7:28 PM

House Armed Services Committee leaders today announced a series of hearings aimed at illuminating military aspects of the Obama administration's pivot to the Asia-Pacific region. Led by Randy Forbes (R-VA), the seapower and projection forces subcommittee chairman, and panel member Rep. Colleen Hanabusa (D-HI), the series is expected to last through early 2014.

Of the five hearings slated to take place, four will be more or less explicitly about China. Topics are the 2013 annual report of the U.S.-China Economic and Security Review Commission; the Defense Department's role in the government's orientation toward the Asia-Pacific; responding to China's military space capabilities; maritime disputes in the region; and the People's Liberation Army's “naval and aerospace modernization,” according to a fact sheet handed to reporters at a roll-out event today.

An Oct. 10 hearing about the Pentagon's Air-Sea Battle concept marked the beginning of the hearing series, according to the document.

By John Liang
October 29, 2013 at 3:53 PM

U.S. and Romanian officials this week broke ground on an Aegis Ashore missile defense site in Romania.

"Today, we are breaking ground both literally and metaphorically," Under Secretary of Defense for Policy James Miller said Oct. 28 in Deveselu. "The construction that this ceremony will kick off marks the beginning of a new stage in U.S.-Romanian relations and for the NATO Alliance."

Construction of the Aegis Ashore site is part of the Obama administration's proposed European Phased Adaptive Approach meant to stop a potential ballistic missile attack from Iran, with an interceptor site in Romania and an early warning radar site in Poland.

According to Miller's prepared remarks:

When Phase 2 of EPAA is completed here in the 2015 time frame, Europe will be safer, U.S. forces will be better protected, and the NATO Alliance will be stronger. Moreover, our efforts here in Romania serve as a precursor for the Phase 3 site in Poland.

And I look forward to a groundbreaking at the Phase 3 site in the not-so-distant future. Our commitment to EPAA is ironclad and I look forward to seeing the completion of the system in the coming years.

By John Liang
October 28, 2013 at 8:46 PM

The Pentagon's Joint Test and Evaluation Program is calling on the services and other military agencies to nominate efforts in need of testing, according to a recent memo.

"The Office of the Secretary of Defense-sponsored Joint Test and Evaluation (JT&E) Program is requesting joint test nominations (now a biannual process) for the first cycle of fiscal year 2014," a Sept. 3 memo states, adding: "The JT&E Program Manager requests the Services, Joint Staff, combatant commands (CCMD), and other Department of Defense (DOD) agencies provide candidate nominations to the JT&E Program Office (JPO) for consideration no later than November 29, 2013." Further:

Nominations should contain sufficient detail to convince the Planning Committee and JT&E Program Senior Advisory Council (SAC) members that the proposed joint test will significantly improve joint warfighter operations and capabilities. If a nomination package does not contain the required information or sufficient detail, JPO will return the package to the nominator with specific rationale and guidance. JPO will invite the nominator to submit a revised package for consideration during the ongoing joint test nomination cycle. If the nomination package still does not contain all of the required information, JPO will once again return the package to the nominator with specific rationale and guidance, and invite the nominator to submit a new package for consideration during the next joint test nomination cycle.

A "planning committee" will meet on Jan. 29, 2014, to determine which nominations to forward to the JT&E Program Senior Advisory Council for consideration at its meeting the following month, according to the memo.

By John Liang
October 25, 2013 at 8:40 PM

House lawmakers plan to take a long, hard look at the Obama administration's strategic pivot toward the Asia-Pacific region.

House Armed Services Committee Chairman Buck McKeon (R-CA) and Ranking Member Adam Smith (D-WA), along with seapower and projection forces subcommittee Chairman Randy Forbes (R-VA), readiness subcommittee Chairman Rob Wittman (R-VA) and Ranking Member Madeline Bordallo (D-GU), and Rep. Colleen Hanabusa (D-HI) will host a media roundtable on Oct. 29 to preview the panel's upcoming oversight work with regard to the Asia-Pacific pivot.

"The members are expected to preview a series of hearings and other committee engagements focused on the administration's 'pivot to the Pacific' policy," according to a committee statement issued this afternoon.

By John Liang
October 24, 2013 at 7:44 PM

The Congressional Research Service recently issued a report on the Navy's shipbuilding plans.

The Oct. 18 report -- prepared by CRS naval affairs specialist Ronald O'Rourke and published by Secrecy News -- discusses "issues for Congress in reviewing the Navy's proposed FY2014 shipbuilding budget, its proposed FY2014-FY2018 five-year shipbuilding plan, and its FY2014 30-year (FY2014-FY2043) shipbuilding plan." Specifically:

Proposed issues for Congress in reviewing the Navy’s proposed FY2014 shipbuilding budget, its proposed FY2014-FY2018 five-year shipbuilding plan, and its FY2014 30-year (FY2014-FY2043) shipbuilding plan include the following:

* the impact on Navy shipbuilding programs of the March 1, 2013, sequester on FY2013 funding and unobligated prior-year funding;

* the potential impact on Navy shipbuilding programs of a possible sequester later this year or early next year on FY2014 funding and unobligated prior-year funding;

* the potential impact on the size of the Navy of reducing DOD spending (through sequestration or regular appropriations activity) in FY2013-FY2021 to levels at or near the lower caps established in the Budget Control Act of 2011;

* the future size and structure of the Navy in light of strategic and budgetary changes;

* the sufficiency of the 30-year shipbuilding plan for achieving the Navy's goal for a 306-ship fleet; and

* the affordability of the 30-year shipbuilding plan.

O'Rourke also testified this week before the House Armed Services seapower and projection forces subcommittee on the Navy's 30-year shipbuilding plan.

"Major points of discussion about the 30-year plan, particularly the affordability challenge it poses, are now so well established, and repeated so often, that discussion of the plan is now at some risk of becoming stale and unproductive," O'Rourke said in his prepared testimony. "Accordingly, the remainder of this statement is intended to offer some potential new perspectives on the plan, so as to refresh the discussion and make it potentially more valuable to Congress as its carries out its oversight of Navy shipbuilding programs and the Navy's budget in general."

By Courtney Albon
October 23, 2013 at 8:59 PM

The decision to delay a Pentagon-level acquisition decision for Space Fence will cost the Air Force about $70 million, according to the service's acquisition executive.

In prepared testimony presented this afternoon to the House Armed Services Committee, Bill LaPlante said holding off on an acquisition decision on Space Fence because of spending cuts, has added tens of millions of dollars to the program's cost. The delay stalls a contract award that LaPlante says could have been issued in June to no sooner than next spring -- if at all -- and pushes the space situational awareness system's initial operational capability from 2017 to 2018.

The upgraded Space Fence is poised to provide the service with a much more precise space object tracking capability and is to replace a decades-old system that the service shut down in September. LaPlante said investment in systems like Space Fence is crucial.

"Modernization is not optional; it is required to execute core missions against future high-end threats," LaPlante said. "In short, we cannot afford to mortgage the future of our Air Force and the defense of our nation."

By Ellen Mitchell
October 22, 2013 at 2:54 PM

The Army's top cyber official said yesterday that the service will have to partner with industry to solve many of its cybersecurity problems.

Lt. General Edward Cardon told reporters at the Association of the United States Army's annual meeting that Army cybersecurity efforts cannot take seven to 10 years like standard acquisition programs. He advocated more partnerships with industry to better prepare the service for new threats.

"We didn't build with cybersecurity in mind before and I think there's growing realization that those problems are not going to be solved by the U.S. government," Cardon said. "It's got to be involved with partnership with industry that takes security more into account."

An Army cyber field manual is "in the works," he noted, and Army Secretary John McHugh is "very close" to making a decision on the establishment of an Army cyber center of excellence. Army Chief of Staff Gen. Raymond Odierno approved the center -- where all service cyber personnel would receive training -- in July. The center would likely be based at Fort Gordon, GA.

Cardon also said the three-week government shutdown has hurt the Army's cybersecurity efforts because the service was forced to halt some training."Cyber is highly characterized by competence," he said. "The challenge with cyber is it's uncertain . . . we need every drop and readiness we can out of every dollar. Every day you have to think that you're a little bit vulnerable. If you don't think that you're vulnerable, you're probably not going to have a good day."

Cybersecurity has become a hot button issue for the U.S. government in the past year, with several reports of rampant computer espionage and theft of commercial and government data coming to light. In May, a confidential Defense Science Board report revealed that more than two dozen U.S. weapon systems had been compromised by Chinese hackers.

Lawmakers and military leaders alike are working to combat the problem. In June, the House Armed Services Committee passed its version of the fiscal year 2014 defense authorization bill, which contained language on cyber operations, including a requirement that the Defense Department "conduct a mission analysis for cyber operations and examine the proper balance of cyber capabilities across national security organizations as well as a report on coordination of cyber and electronic warfare activities."

By John Liang
October 21, 2013 at 7:41 PM

In preparation for a dual-intercept test next month, a Medium Extended Air Defense System Multifunction Fire Control Radar (MFCR) early this summer successfully acquired and tracked a Lance tactical ballistic missile at White Sands Missile Range, NM.

The event was the first attempt by a MEADS radar to track a live TBM, according to a Lockheed Martin statement.

"The pre-test series for the November dual intercept continues," a Lockheed spokeswoman told InsideDefense.com today.

The X-band MFCR detected the Lance missile soon after launch and maintained a "Dedicated Track Mode" until shortly before the target hit the ground. "This test characterized MFCR performance against a TBM-class target, and demonstrated the radar's 360-degree rotating mode capability," according to Lockheed.

"No other transportable air and missile defense radar provides the MEADS combination of 360-degree coverage, superior range and positioning flexibility," MEADS International President Dave Berganini said in the statement. "“We are looking forward to showing the capability that MEADS radars and launchers can add as part of an integrated air and missile defense network."

Next month's test will feature MEADS intercepting a tactical ballistic missile as well as air-breathing targets "attacking at more than 120 degrees to demonstrate capabilities not provided by sectored defenses," according to the statement.

MEADS International Executive Vice President Volker Weidemann said: "In the past few months, MEADS has successfully demonstrated radar cueing, interoperability with networked NATO systems, certification of the Mode 5 Identification Friend or Foe system, and acquisition and tracking of a TBM during the system’s first attempt."

Inside the Army reported last month that Lockheed has been pushing behind the scenes for continued review of the Army's missile defense modernization plan in order to ensure that the technology harvested from MEADS is seriously considered for incorporation into the service's future missile defense architecture:

"We are working hard in the background trying to make sure there is the least amount of parochialness," Mike Trotsky, Lockheed's vice president for air and missile defense, told Inside the Army following a Sept. 10 media briefing in Washington. "Because if you are in the Patriot program office or you are in program XYZ, you are going to promote things from your program office."

MEADS was intended to replace the Patriot missile defense system, but the Pentagon said in 2011 that it would not buy the system. Yet, as part of a tri-national agreement between Italy, Germany and the United States, the program was allowed to continue through an $800 million two-year proof-of-concept phase. By completing the phase, the three countries will be allowed to harvest the technology developed under the program, but how each country plans to use the technology in the future is not fully mapped out, no more so than the United States.

While Germany and Italy plan to engage in follow-on programs to continue developing the MEADS system, the United States has said it plans to harvest certain technologies developed through the program and incorporate them into future systems, but details on how and when are vague.

Trotsky said Lockheed is asking for a "non-advocate review" outside of the current Army program offices, conducted by an organization like the RAND Corp. or the Institute for Defense Analyses, in order to get an independent analysis for the government on what is needed to modernize the service's missile defense architecture. "We are asking, 'Will those [within a program office] be taking a look at this and giving you an unbiased view on what the best alternatives are for the money you are going to spend for the next 30 years,'" he said.

By Christopher J. Castelli
October 18, 2013 at 8:43 PM

The Congressional Budget Office released a report today on the Navy's fiscal year 2014 shipbuilding plan.

The report includes CBO's first cost estimate for the CVN-79 aircraft carrier. "The Navy estimates that the ship will cost $10.2 billion in 2013 dollars, or $11.3 billion in nominal dollars," CBO states, adding:

In its new Selected Acquisition Report on the CVN-79, the Navy describes its cost estimate as an "aggressive but achievable target." In contrast, CBO estimates that the cost of the ship will be $11.3 billion in 2013 dollars, or about 10 percent more than the Navy’s estimate, and $12.0 billion in nominal dollars.