The Insider

On Board
By Christopher J. Castelli
October 4, 2011 at 5:46 PM

Defense Secretary Leon Panetta today announced some familiar names will be joining the Defense Policy Board as new members: Madeleine Albright, former secretary of state; Jamie Gorelick, former deputy attorney general; Jane Harman, former congresswoman (D-CA); retired Gen. James Cartwright, former vice chairman of the Joint Chiefs of Staff; and retired Adm. Gary Roughead, former chief of naval operations.

"These members join the following returning members: John Hamre, chairman; Harold Brown; J.D. Crouch; Richard Danzig; Rudy deLeon, Chuck Hagel; Retired Gen. Jack Keane; Henry Kissinger; Frank Miller; John Nagl; Sam Nunn; Joseph Nye; William Perry; James Schlesinger; Brent Scowcroft; Sarah Sewall; and Retired Gen. Larry Welch," according to the Pentagon's statement.

The Defense Policy Board provides the secretary, deputy secretary and under secretary for policy with advice and opinion on matters of defense policy.

Carter Bids Farewell
By Jason Sherman
October 4, 2011 at 3:42 PM

Ashton Carter, the next deputy defense secretary, last week said arrivederci to the Pentagon's acquisition workforce, which he has led since April 2009.

In a memo summarizing efforts he sees as key accomplishments and initiatives to be continued, Carter writes "We have plowed entirely new ground in response to technological change, energy challenges, and new threats. And we have moved smartly into areas where AT&L needed capabilities but had none."

Strategic Management Plan
By John Liang
October 3, 2011 at 5:44 PM

The Defense Department recently released an updated version of its Strategic Management Plan, which "establishes specific business goals that directly support the Strategic Goals of the [Quadrennial Defense Review], as well as further articulates changes needed in the department's business domain, while ensuring unity of effort across the enterprise."

The plan covers fiscal years 2012 through 2013, and has seven "overarching business goals":

1. Strengthen and right-size the DoD total workforce

2. Strengthen DoD financial management

3. Build agile and secure information technology capabilities

4. Increase the buying power of the DoD

5. Increase operational and installation energy efficiency

6. Re-engineer/use end-to-end business processes

7. Create agile business operations that support contingency missions

Read the plan.

DBB Meeting
By John Liang
September 30, 2011 at 3:41 PM

The Defense Business Board plans to hold a public meeting on Oct. 20 to discuss draft findings and recommendations from a pair of task groups, according to a Federal Register notice published this morning:

At this meeting, the Board will deliberate draft findings and recommendations from the "Information Technology Modernization" Task Group. The Board will also receive an update from the "Re-engineering the Requirements Process" Task Group. The mission of the Board is to advise the Secretary of Defense on effective strategies for implementation of best business practices of interest to the Department of Defense.

According to the meeting agenda:

Public Session

8:30 a.m.-9:15 a.m. Deliberation of Task Group Draft Recommendations -- Information Technology Modernization.

9:15 a.m.-9:30 a.m. Task Group Update -- Re-engineering the Requirements Process.

As Inside the Pentagon reported in June:

Deputy Defense Secretary William Lynn has launched a sweeping review to help boost the efficiency and security of the Pentagon's multibillion-dollar information technology modernization efforts.

As the Defense Department faces the prospect of major budget cuts and struggles to execute plans to shutter its networking directorate in the name of efficiency, Lynn is turning to the Defense Business Board for independent advice on the $38 billion IT budget that supports DOD activities worldwide.

In a May 20 memo to the board, Lynn lays out the "numerous operating challenges" facing the department's "highly complex" IT infrastructure and environment.

"DOD operates about 10,000 operational systems running on 15,000 networks using 67,246 servers and 772 data centers spanning 146 countries and 6,000 locations," Lynn writes.

The complexity has created cyber vulnerabilities, decentralized planning and standards, impediments to joint and allied operations, large cumulative costs and an inability to capitalize on rapidly evolving technology, the memo states.

"For these reasons, it is imperative that the department identify and pursue every opportunity to economize and increase the efficiency of its IT enterprise," Lynn writes.

The memo directs the board to determine how DOD can boost the efficiency of and modernize the department's IT enterprise by consolidating data centers.

The memo also calls for the study to identify opportunities for the "efficient, effective and secure implementation of cloud computing" to support DOD's business operations and warfighting. Cloud computing -- which, like data-center consolidation, has become a priority for the Obama administration -- is a relatively new IT approach that provides users access to data and software via a network instead of relying on applications on local computers. The board's review must address security concerns associated with both data-center consolidation and cloud computing, Lynn writes.

Budget Talks
By Christopher J. Castelli
September 29, 2011 at 6:33 PM

This morning at the Pentagon, combatant commanders received "a series of briefings on the budget landscape" and discussed a "broad" range of issues in meetings scheduled to give COCOMs an opportunity to provide input concerning long-term investment plans and potential ways to glean savings, Pentagon press secretary George Little told reporters this afternoon.

The discussions are continuing, he noted. Officials have not yet determined the final figure for the amount of defense cuts planned over the next decade, he said.

We broke the news of the meeting last week:

'Alt POMs' To Be Briefed To COCOMs As OSD Begins FY-13 Program, Budget Review

The military services next week are scheduled to begin briefing combatant commanders on their revised five-year spending plans as the Office of the Secretary of Defense begins its fiscal year 2013 budget review, a process expected to be influenced by new mandatory spending caps as well as a revision in strategy dubbed "QDR Minus."

Earlier this month, the services submitted “alternative” program objective memoranda -- dubbed "alt POMs" -- that reflect the August budget accord between the White House and Congress, a deal that requires cuts of more than $450 billion to the Pentagon's 10-year spending plan. The alternative POMs have been briefed to Pentagon leaders, including Deputy Defense Secretary William Lynn, according to DOD sources.

Details behind the FY-13 to FY-17 spending plans, including any new cuts to programs and force structure, are due to be briefed beginning next week to regional and functional combatant commanders, who play an indirect role in shaping the military department's budget plans.

Sources familiar with the services' plans say the alternative POMs were balanced by tapping manpower accounts through the use of civilian hiring freezes and end strength cuts, as well as via cuts to modernization accounts.

Meanwhile, the Office of the Secretary of Defense has begin in earnest its review of the alt POMs, sources said. Beginning in early October, OSD is expected to begin directing changes to the service POMs in line with the results of the comprehensive defense review launched this spring, which is intended to provide a strategic framework for budget cuts. Pentagon sources say the new framework retains fundamental elements of the 2010 Quadrennial Defense Review.

"It's the QDR strategy, with some tweaks," said one source familiar with the findings. "I don't think they're making any major shifts of strategy." . . .

Passing The Torch
By John Liang
September 28, 2011 at 7:32 PM

Outgoing Chairman of the Joint Chiefs of Staff Adm. Mike Mullen will transfer his command to Army Gen. Martin Dempsey this Friday, according to a Pentagon announcement.

The event will take place at 11 a.m. Eastern Standard Time at Ft. Myer, VA. Dempsey will become the 18th chairman of the Joint Chiefs of Staff.

AFRICOM Meetup
By John Liang
September 28, 2011 at 3:31 PM

U.S. Africa Command will convene its annual "Joint Europe Africa Deployment and Distribution Conference" (JEADDC) in Germany this December, according to a notice posted on this morning's Federal Register.

The Dec. 5-8 JEADDC will feature "a keynote address, panel discussions, and working groups involving agency personnel, members of the trade community, academia, and other government agencies," the notice reads, adding: "Conference participants will focus on transportation and logistics strategy, capabilities, initiatives, issues, and concerns in Africa and Europe.

Retired Lt. Gen. Claude "Chris" Christianson will be the keynote speaker, according to the notice. The conference's agenda is as follows:

Monday, December 5, 2011 ('icebreaker' social—6 p.m.-9 p.m.).

Tuesday, December 6, 2011 (opening remarks, keynote address, and panel discussions—8:15 a.m.-5 p.m.).

Wednesday, December 7, 2011 (working groups—8:30 a.m.-5 p.m.).

Thursday, December 8, 2011 (working groups working groups and out brief —8:30 a.m.-5 p.m.).

Inside the Pentagon reported earlier this month that AFRICOM is working to "rigorously prioritize" its missions and find ways to reduce redundancy in the face of dwindling defense spending, according to the general in charge:

AFRICOM is looking to determine where it can achieve the greatest effect as the Pentagon is forced to cut hundreds of billions of dollars in the coming years, Gen. Carter Ham told reporters Wednesday [Sept. 14] at a breakfast in Washington. Regionally, that focus will be directed to East Africa, which is home to piracy, famine and violent extremists, Ham said.

"There's this seam, this boundary between us and Central Command, a growing connection between al Qaeda in the Arabian Peninsula, al-Shabaab and al Qaeda in East Africa," Ham said.

This region is also home to the Lord's Resistance Army, as well as the new nation of South Sudan. Ham said. "East Africa's kind of got the largest conglomeration of security issues," Ham said.

In addition, AFRICOM is looking to find opportunities to "do more multinationally, more regionally and less bilaterally," Ham said.

The Defense Department is facing nearly $350 billion in budget cuts. That amount could be increased depending on the actions of a supercommittee of 12 lawmakers tasked with proposing nearly $1.5 trillion in cuts across the federal government by Thanksgiving.

AFRICOM takes up a relatively tiny piece of DOD's budget, the general noted. "From a budget standpoint, we're pretty small potatoes," Ham said.

AFRICOM, which is located in Stuttgart-Moehringen, Germany, had nearly 2,100 personnel as of April, according to the command's website. DOD's fiscal year 2012 budget request seeks just under $290 million for the command, according to a recent Congressional Research Service report.

F-16 Deal
By Christopher J. Castelli
September 27, 2011 at 7:39 PM

The Iraq government has transferred its first payment for 18 Lockheed Martin F-16C fighter aircraft, the block 52 variant, initiating a foreign military sale that has a "total value" of "approximately $3 billion," Pentagon Press Secretary George Little said in a statement this afternoon.

"These aircraft will help provide air sovereignty for Iraq to protect its own territory and deter or counter regional threats," he said. "They are also a symbol of the commitment to a long-term strategic partnership between the United States and Iraq."

The Defense Department expects foreign military sales, "including items such as F-16 aircraft, to serve as a cornerstone of our future cooperation and support the development of the long-term cooperative security relationship we envision with Iraq," Little said. In general, foreign military sales strengthen U.S. diplomatic and military ties with allies and "support American industry and jobs at home," he said.

Earlier this month we reported on remarks made by Maj. Gen. Russ Handy, commander of the 9th Air and Space Expeditionary Task Force-Iraq, who told reporters that the Iraqis had recently had "very promising" conversations with the Air Force about an aircraft sale that would net them the F-16s as soon as 2013.

From our story:

Once Iraq has inked a deal to purchase the aircraft, the country will be able to access additional pilot training, Handy said. That pilot training will be included in the F-16 purchase package, he said. However, currently there are already 10 Iraqi pilots training in the U.S. to fly aircraft that might not be available to them by the time they have finished their training courses, he added.

It takes about three years to train an F-16 pilot, Handy said. Adding that, "some of those pilots might finish that F-16 training before those F-16s arrive in Iraq."

"The Iraqis are looking at ways of mitigating that," he said. "Other nations have been known to buy flight time, for example, and fly F-16s elsewhere to stay current."

Negotiations were tentative earlier in the year but fell apart amid uprisings in the Middle East, Handy said.

"The last time we went through this . . . the Iraqi government decided not to sign the letter of offer and acceptance," he said. "As you recall, it was a bad time in the region. Many nations, concurrently, were having very awful things going on in their neighborhood and, again, this is my opinion, my conjecture, but I think the prime minister of Iraq [Nouri al-Maliki] was watching that . . . I think the prime minister took notice of that and he took that money and diverted it to [social service] resources as opposed to spending in on a defense purchase of F-16s. I think it was a courageous decision."

What may have changed since then and re-ignited the discussion of that F-16 sale, Handy said, is that al-Maliki has likely seen some improvements in his country and that Iraq's oil revenues are up and its finances are in better shape now.

"I don't presume to speak for him, but we are very encouraged," he said.

Recap Day
By Tony Bertuca
September 27, 2011 at 3:43 PM

The Army will hold an industry day on Oct. 7 at Selfridge Air National Guard Base, MI, for contractors interested in the humvee recapitalization program, according to a service announcement.

For the recap effort, now being referred to as the Modernized Expanded Capacity Vehicle program, the Army released a draft request for proposals last week, but has yet to put forth three additional sections addressing the terms by which contractors will be evaluated.

Ashley John-Givens, an Army spokeswoman, said the additional sections could be released as early as this week, Inside the Army reported yesterday.

While incumbent contractor AM General is vying for a chance to recap the humvee, other major industry players like Textron, Oshkosh and BAE Systems have developed competing designs.

The focus on the recap program has sharpened since the planned replacement for the humvee -- the Joint Light Tactical Vehicle -- has come under siege by Senate appropriators who terminated all funding for the JLTV in their version of the fiscal year 2012 defense spending bill.

Col. David Bassett, the Army program manager for tactical vehicles, has said the humvee recap cost ceiling is $180,000 per vehicle.

While it has been reported that the Army plans to recap 60,000 humvees, Bassett has said the service wants to begin publicizing that it is planning only an initial run of 6,000 vehicles, though that number could change if the program proves successful.

Robot Regrets
By John Liang
September 27, 2011 at 3:10 PM

Rep. Lynn Woolsey (D-GA) last week gave a speech on the House floor imploring her colleagues to prohibit the military from using unpiloted drones that have complete autonomy and would not be operated by actual human beings.

"I can't even begin to wrap my head around the humanitarian red flags associated with this experiment in robotics," she said Sept. 22. "Software can break down. It could even be hacked. Furthermore, computers don't have a conscience. They aren't nimble, they can't make snap decisions based on new information or ethical considerations. They're programmed to do what they do without judgment, discretion, or scruples. You can just imagine, or I can anyway, mass civilian atrocities thanks to a robot drone raging out of control."

Woolsey cited a group called the International Committee for Robot Arms Control which points out that "if we have a treaty banning land mines, why not one that outlaws these automatic killer drones?"

While some advocates for the system feel such drones could be programmed to comply with the international laws of warfare, Woolsey said she was "certainly skeptical. We couldn't even get the last president of the United States to understand and abide by the Geneva Conventions. I don't know how we're going to get a robot to do it."

Woolsey called the rising "dehumanization" of warfare "part of a terrifying trend. Somehow it's easier to kill one another when we have computers and machines to carry it out for us, when we don't have to stare our own mayhem in the face." She preferred switching the money spent on such drones to "alternatives to warfare and nonviolent ways to resolving conflict."

'Significant Risk'
By Jason Sherman
September 26, 2011 at 8:21 PM

The White House Office of Management and Budget and the Pentagon warned lawmakers earlier this month that military spending cuts required by law -- if Congress fails to craft a workable deficit-reduction plan -- "could pose a significant risk to national security."

That quote comes from a Sept. 15 letter letter penned by Jacob Lew, the OMB director, and Defense Secretary Leon Panetta. It was sent to lawmakers in response to questions from Congress about Defense Department budget guidance and the status of the comprehensive review.

Top Pilot
By Titus Ledbetter III
September 26, 2011 at 5:05 PM

Lockheed Martin today delivered the first HC-130J Combat King II to Air Combat Command, according to a company statement.

Air Force Chief of Staff Gen. Norton Schwartz flew the aircraft from a Lockheed Martin aeronautics facility in Marietta, GA, to Davis-Monthan Air Force Base, AZ, today, according to the statement. It is the first of 11 aircraft that are currently on order.

"It's an honor to have flown this magnificent aircraft from Marietta today," Schwartz said during the ceremony. "It's a significant milestone for the personnel recovery and the combat search and rescue community. The capability of the HC-130 Combat King II is an order of magnitude greater than any of its predecessors, and I have to tell you it's certainly better than any Herc[ules] of any variety that I have ever flown."

The new aircraft -- based on the KC-130J tanker -- has the enhanced service life wing, an enhanced cargo handling system, a universal aerial refueling receptacle slipway installation, an electro-optical/infrared sensor, a company systems operations station and dual satellite communications, according to the statement. The aircraft's initial operational capability date is 2012.

Chopper Forecast
By John Liang
September 26, 2011 at 3:15 PM

The research firm Forecast International predicts that 1,877 light military helicopters will be built between by the end of the decade, with a value of $24 billion "in constant 2011 U.S. dollars."

According to a Forecast International statement issued this morning, "light military rotorcraft production will increase through 2012, representing a continuation of the market's growth track of recent years." Further:

After 2012, however, Forecast International expects that yearly production in the segment will enter a period of gradual, though erratic, decline through the 2018/2019 timeframe.  The company's projections indicate that production will total 193 units in 2011 and 215 units in 2012, decline to 186 units in 2013, increase to 204 units by 2015, and then decline to just over 165 units in each of 2018 and 2019.  Production in 2020 is projected at 185 units.

"Current military helicopter acquisitions are running their course, and very few major procurements of light military helicopters have emerged that could help grow, or even maintain, production levels in the market," said Forecast International senior aerospace analyst Raymond Jaworowski.

The market momentum of recent years will not be sustained.  The U.S. accounts for a large portion of demand in the market, and the present modernization cycle in U.S. military rotorcraft procurement is nearing an end.  Meanwhile, defense spending is under intense pressure in the U.S. and many other countries that have contributed to much of the recent demand in the market.

The new Forecast International study includes projections of manufacturer market shares.  These indicate that Eurocopter will be the leading manufacturer of light military rotorcraft during the 2011-2020 time period.  AgustaWestland is projected to be second in unit production during this timeframe, followed by Hindustan Aeronautics Ltd (HAL) and Bell Helicopter.  Each of these companies has a robust presence in the market but, as detailed in the study, pursue widely diverging strategies to protect and enhance their market share.

InsideDefense.com reports this morning that the Air Force has chosen to delay the release of a draft request for proposals for its Common Vertical Lift Support Platform, the first of two planned helicopter recapitalization efforts:

Industry representatives last week told reporters they were expecting the release of the draft RFP in the near future, but the service announced on Sept. 23 that the draft RFP had been temporarily delayed.

"The Air Force is currently undergoing programmatic and budgetary deliberations resulting from the Budget Control Act and establishment of the Joint Select Committee on Deficit Reduction," the posting states. "In recognition of industry's time and monetary investment required to provide input on the draft RFP, the Air Force is temporarily delaying its release."

The Budget Control Act, which Congress passed this summer to avoid a default on the national debt, set spending caps for fiscal years 2012 and 2013 that could affect many Defense Department programs.

The service has not announced a new release date for the draft RFP.

Carter Confirmed
By Christopher J. Castelli
September 23, 2011 at 10:46 PM

Defense Secretary Leon Panetta issued the following statement today on the Senate's confirmation of Ashton Carter to be the next deputy defense secretary:

I would like to thank the U.S. Senate for its strong vote of confidence in confirming Ash Carter as the next Deputy Secretary of Defense. Ash has a steady hand, a keen intellect, and an effective management style that will help this Department keep faith with our troops and protect our nation.  He is already an essential part of my team as an outstanding Undersecretary of Defense, and I look forward to his continued guidance and leadership as he assumes his new responsibilities. Ash succeeds Bill Lynn, who served with distinction and was a tireless advocate for our men and women in uniform. I wish Bill and his family all the best for the future.

Earlier this week, the Senate Armed Services Committee approved the nomination, a move that followed Carter's Sept. 13 confirmation hearing. Carter was sworn in as under secretary of defense for acquisition, technology and logistics on April 27, 2009.

Budget Bust-Up
By John Liang
September 23, 2011 at 8:09 PM

With the government yet again teetering on the brink of a shutdown if lawmakers in the House and Senate cannot compromise on a continuing resolution by the end of the month, House Armed Services Committee Ranking Member Adam Smith (D-WA) today issued the following statement:

Our country faces a long-term, systemic budget dilemma -- we don't collect enough revenue to cover our expenditures.  Currently, we must borrow about 40 cents for every dollar the federal government spends. Going forward, we must fix this problem from both ends -- spending will have to come down, and we're going to have to generate new revenues.

As Ranking Member of the House Armed Services Committee, I am particularly concerned that further large and indiscriminate cuts to the defense budget could have a substantially negative impact on our military. I am also deeply concerned about cuts to all non-entitlement spending, which bore the brunt of the recent deficit deal. Furthermore, if the super committee fails to reach a deal, then cuts through sequestration will only impose deeper and more dangerous cuts to our military and non-entitlement spending such as infrastructure, education and homeland security.

Recently, Republican members of the Armed Services committee have been issuing dire warnings about the potential impacts of additional defense budget cuts. I share their concerns, but at the same time my Republican colleagues refuse to consider raising any additional revenue. In order to avoid drastic cuts to our military and other important programs, revenue must be on the table.

We also cannot just issue dire warnings about the national security impacts of defense cuts. We must develop a comprehensive national security strategy that takes into account current and future funding and rationally appropriates our resources to best meet our challenges.

I applaud the President and his Administration for undertaking a zero-based review of our defense strategy. A strategic review at this moment is a rational and responsible decision.  Our defense strategy should not be driven by arbitrary budget numbers, but by the same token, it would be irresponsible to develop a strategy without considering the available resources.

We can rationally evaluate our national security strategy, our defense expenditures, and the current set of missions that we ask the military to undertake, and we can come up with a strategy that requires less funding. Spending more does not necessarily improve our national security, spending more wisely does.

Again, I share the concern with my colleagues on the other side of the aisle that large, immediate, across the board cuts to the defense budget may well do damage to our national security. But it is important to understand the reality that we can’t just wish our problems away. I hope my Republican colleagues will recognize that in order to avoid arbitrary cuts to defense and other important programs we must put revenue on the table and we must undergo a comprehensives strategic review to understand how best to spend the defense dollars we have.

For more news on the DOD budget process, check out Defense Budget Alert.