The Insider

Biden orders DOD to lease gigawatt-level sites for AI data centers
By Theresa Maher
January 14, 2025 at 9:30 AM

President Biden's executive order issued today directs the Pentagon to select and lease federal sites for private-sector entities to build and operate large-scale artificial intelligence data centers.

DOD, along with the Energy Department, will select these sites based on their “accessibility to high-capacity transmission infrastructure and minimized adverse effects on communities, the natural environment and commercial resources,” according to Biden’s statement on the order.

After sites are selected, DOD and DOE will issue “competitive solicitations” for proposals to lease them for building, owning and operating gigawatt-scale AI infrastructure, according to the statement.

Selected contractors will also be subject to a range of further requirements, including but not limited to purchasing an “appropriate share” of domestically manufactured semiconductors and “procuring new clean energy generation resources that can be delivered to the data center and that accurately match their electricity and capacity needs,” the statement reads.

Contractors will also be required to pay the full cost of building, operating and maintaining the AI infrastructure.

“This renewed partnership between the government and industry,” Biden said, “will ensure that the United States will continue to lead the age of AI.”

Kennedy joins ManTech
By John Liang
January 14, 2025 at 9:28 AM

ManTech today announced it has named retired Air Force Lt. Gen. Kevin Kennedy as vice president of defense strategy and warfighting integration.

"In this new position, Kennedy will lead ManTech’s campaign on providing Cybersecurity, Electronic Warfare and C5ISR services to the U.S. Department of Defense," the company said in a statement.

Prior to joining ManTech, Kennedy served as the commander of the 16th Air Force (Air Forces Cyber) where he led the service's global cyber, network, enterprise IT, weather, intelligence, surveillance, reconnaissance, electronic warfare and information warfare operational enterprises. As the Air Force component to U.S. Cyber Command, he led the operational planning and coordination for CYBERCOM operations and activities supporting U.S. Strategic Command, U.S. European Command and U.S. Space Command.

NAVSEA announces new 'enterprise strategy' to better align with CNO's vision
By Nick Wilson
January 13, 2025 at 6:58 PM

Naval Sea Systems Command today announced the launch of an "enterprise strategy" to more closely align its operational lines of effort with "emerging Navy-wide strategic imperatives" and with the chief of naval operation's vision for the service.

According to the announcement, this new strategy is driven by readiness targets established in Adm. Lisa Franchetti’s September 2024 Navigation Plan, which sets a series of goals including achieving and sustaining an 80% “combat surge ready posture” for ships, submarines and aircraft by 2027.

The enterprise strategy, which was developed through an “enterprise-wide self-assessment process,” is intended to synchronize NAVSEA activities with Franchetti’s targets using “predictive analytics and data-driven decision making,” the notice states.

“CNO depends on the NAVSEA enterprise to get the Navy’s ships and their warfighting systems designed, delivered, maintained, and sustained to meet global national security requirements,” NAVSEA commander Vice Adm. Jim Downey said in a statement included in the release. “So, NAVSEA is accelerating efforts to put more players on the field -- that is, platforms, ready with the right capabilities, weapons, and sustainment support.”

The strategy includes five lines of effort:

  • Accelerate force generation to deliver ships and combat systems.
  • Generate readiness to maintain, modernize, and sustain platforms.
  • Generate, capture, and use data to drive innovation.
  • Strengthen the Navy team by attracting, retaining, and growing the NAVSEA workforce.
  • Strengthen the foundation, enhancing NAVSEA’s critical infrastructure.

The creation of the enterprise strategy, which began in May 2024, included organization restructuring intended to place greater emphasis on these lines of effort, the announcement indicates.

For example, NAVSEA decoupled the positions of executive director for industrial operations (SEA 04) and deputy commander and supervisor of shipbuilding, conversion and repair (SUPSHIP) to “emphasize the importance of delivering and sustaining more players on the field,” the notice states.

NAVSEA has also re-established a sustainment directorate (SEA 06) and appointed two new positions -- a deputy commander for sustainment and a chief logistician -- to improve the life-cycle sustainment of platforms and weapon system. This change is meant to “shift the mindset of how NAVSEA supplies parts and delivers materials from ‘just in time’ to ‘just in case’,” the announcement adds.

Kendall calls on airmen and guardians to 'speak truth to power'
By Shelley K. Mesch
January 13, 2025 at 5:21 PM

In his farewell address, outgoing Air Force Secretary Frank Kendall called on airmen and guardians to continue to "speak truth to power" and defend the rights enshrined in the Constitution.

Kendall thanked the airmen and guardians who spoke up to correct him during meetings, and he asked that military and civilian personnel continue to speak out “especially if it feels difficult to do so.”

Kendall asked those who work for the Defense Department to think about their personal boundaries -- particularly which lines they would refuse to cross.

“If we ever lose our Constitution and its protections, we are likely to do so because of those who kept silent and did nothing,” he said.

Referring to a conversation he had with Vice Chief of Staff Gen. Jim Slife, Kendall said the military is nonpartisan, but it is not apolitical. Swearing an oath to uphold the Constitution and advocating for military policies, strategies and funding is inherently political, but those actions are not bound to a political party.

“There is nothing more central to our duty and our moral obligation as public servants and as citizens than protecting our constitution,” he said. “This is even a higher duty than our obligation to obey orders.”

Kendall, who was visibly emotional several times during his address, leaves his office Jan. 20. He has held several positions within the Defense Department and served as Air Force secretary since July 2021.

“We support whoever’s in power,” Kendall said, “as long as we can do so in good conscience.”

ROGUE-Fires to receive self-driving capability under new $30 million award
By Nick Wilson
January 13, 2025 at 3:59 PM

The Marine Corps has awarded nearly $30 million to contractors Forterra and Oshkosh Defense to add autonomous self-driving capabilities to the service's Joint Light Tactical Vehicle-mounted anti-ship missile launcher, according to announcements from the companies and the Pentagon.

Under the award, the two companies will integrate Forterra’s “AutoDrive” autonomy system onto the Remotely Operated Ground Unit for Expeditionary Fires capability. ROGUE-Fires consists of the Navy Marine Expeditionary Ship Interdiction System (NMESIS) -- an anti-ship launcher that fires Naval Strike Missiles -- mounted on Oshkosh’s JLTV.

Intended to provide forward-deployed Marines with a ground-based, anti-surface sea denial capability, ROGUE-Fires is an important piece of the service’s expeditionary advanced base operating concept and force design plans as it prepares for a potential war in the Indo-Pacific.

While present iterations of the ROGUE-Fires system are controlled remotely or follow a leader vehicle, the new contract is intended to give the system truly self-driving capabilities, which are intended to reduce the risk and operational burden placed upon Marines.

According to Forterra’s announcement, the award is the Pentagon’s first production contract specifically for ground vehicle autonomy. The technology will allow the Marine Corps to “move beyond leader-follower capabilities and deploy self-driving technology with high maneuverability for off-road applications in nearly any environment,” the announcement continues.

Deliveries are expected to begin in 2025, Oshkosh’s announcement states, with work under the award scheduled to conclude in calendar year 2026.

Oshkosh received two low-rate initial production orders for ROGUE-Fires earlier in fiscal year 2025 as the Marine Corps moves to rapidly field the capability, the company’s notice states.

Adding self-driving technology to the system “provides the Marine Corps with increased flexibility, scalability and resilience in contested environments,” the announcement adds. “By reducing the need for human driving in high-risk combat environments, this technology enhances battlefield lethality critical to success in the United States Indo-Pacific Command.”

Lockheed Martin announces new Skunk Works head
By John Liang
January 13, 2025 at 2:52 PM

Lockheed Martin announced today it has named OJ Sanchez as vice president and general manager of the company's venerated Skunk Works unit.

Additionally, Lockheed announced that Mike Shoemaker was named as vice president and general manager of the company's Integrated Fighter Group.

Sanchez succeeds John Clark, who was previously announced as the new senior vice president for Technology and Strategic Innovation. Shoemaker succeeds Sanchez.

Sanchez joined Lockheed in 2014, following an Air Force career where he served as an F-22 pilot among other roles. Most recently, he led Lockheed's Integrated Fighter Group.

As the new head of the Integrated Fighter Group, Shoemaker will oversee the development, manufacture and sustainment of the F-16 and F-22 programs as well as the T-50, KF-21, F-21 and F-2. Most recently, he served as the vice president for F-35 Customer Programs the past three years. Prior to joining the company in 2018, Shoemaker had a 35-year career as a Navy aviator, retiring as the commander of Naval Air Forces.

The INSIDER daily digest -- Jan. 13, 2025
By John Liang
January 13, 2025 at 1:57 PM

This Monday INSIDER Daily Digest has news on the Army's Armored Multi-Purpose Vehicle program, plus the service's effort to integrate the Terminal High Altitude Area Defense system into the Integrated Battle Command System architecture and more.

The original baseline in 2015 predicted the Army would churn out 180 Armored Multi-Purpose Vehicles per year. The updated acquisition production baseline estimate is 49 AMPVs short of that, at 131 per year:

A year after Nunn-McCurdy breach resolved, overall AMPV cost starting to drop, Army says

The Armored Multi-Purpose Vehicle resolved a significant Nunn-McCurdy breach against its current baseline in late 2023, according to a Modernized Selected Acquisition Report made publicly available in September.

Document: DOD modernized SAR on the Army's AMPV program

The FY-25 National Defense Authorization Act, signed into law Dec. 23 by President Biden, imposed an $87 million cut to Army and Missile Defense Agency proposed spending across both the THAAD and IBCS programs:

THAAD-IBCS FY-25 integration effort spiked; lawmakers unpersuaded by 'critical' case

The Army is spiking plans to integrate the Terminal High Altitude Area Defense system into the Integrated Battle Command System architecture in fiscal year 2025 -- a capability deemed "critical" for countering advanced missile threats -- after failing to persuade lawmakers the project was justified.

HADES is intended to be an advanced military aircraft system designed to gather critical intelligence from the air, helping the Army stay ahead of high-level threats:

Army eyes 'emerging requirement' for HADES ISR aircraft armed with launched effects

The Army is exploring plans to arm its High Accuracy Detection and Exploitation System (HADES) intelligence, surveillance and reconnaissance aircraft with new launched effects, seeking industry input on mounting released assets to a high-flying, fast-moving plane.

The CEO of HII spoke to reporters last week about submarine procurement:

Finalizing 17-sub buy will require a 'SAWS-like approach,' HII CEO says

Finalizing the delayed contract award for 17 new nuclear-powered submarines will require a "SAWS-like approach," HII CEO Chris Kastner said today, referring to a Navy proposal intended to combat submarine schedule delays and cost growth by restructuring how the vessels are paid for.

Inside Defense recently chatted with the Army's outgoing No. 2 civilian official:

Army under secretary says all-electric vehicles may still be a bit down the road

Outgoing Under Secretary Gabe Camarillo says the Army wants to prioritize hybrid electric drive vehicles and suggested recently that it may be too soon to move forward in developing an all-electric combat vehicle.

RTX secures $333 million SM-6 award
By Nick Wilson
January 13, 2025 at 12:10 PM

Raytheon has received a $333 million Navy contract to produce the Standard Missile-6 block IA variant in an award that could be worth over $900 million if all options are exercised, according to a Pentagon contract announcement.

Production work under the initial award is expected to conclude by 2027, according to a separate RTX announcement, which highlights a March 2024 at-sea demonstration in which an SM-6 missile was used to intercept a medium-range ballistic missile target.

Deployed on a variety of Navy ships, the SM-6 is capable of over-the-horizon, anti-air and anti-surface missions in addition to ballistic missile defense, the company notice continues. The missile has played a significant role in ship defense during ongoing Red Sea operations and has been expended at high rates.

“SM-6 has a proven performance, and this contract is an important step for providing this urgently needed weapon to our armed forces," said Barbara Borgonovi, president of naval power at Raytheon, in a statement included in the release.

The Navy previously sought multiyear procurement authority for the SM-6 during the fiscal year 2024 budget cycle, presenting Congress with plans to procure as many as 825 SM-6 Block IA missiles between FY-24 and FY-28 -- a deal the Navy said would yield $508 million or 13.6% in savings compared to single-year contracts.

Though lawmakers approved a similar multiyear procurement request for the Naval Strike Missile, they denied the SM-6 proposal at least in part because RTX had fallen behind on missile production covered under a prior block buy contract.

Without multiyear authority, the Navy is anticipating higher SM-6 unit costs under FY-24 and FY-25 single-year contracts, a service spokesperson told Inside Defense in July.

Textron debuts new low-cost, scalable unmanned surface vessel
By Abby Shepherd
January 13, 2025 at 10:00 AM

A new low-cost, rapidly deployable family of autonomous surface vessels from defense contractor Textron is currently in "high production" and is ready for the Defense Department and its allies, according to a company news release, although the Navy has not yet awarded a contract.

The vehicle family, called TSUNAMI, is deployable for ranges between 600 to over 1,000 nautical miles, and has a payload capacity of 1,000 pounds. New vessel sizes and configurations are possible as well, according to Textron.

Textron -- the maker of the common uncrewed surface vehicle -- has seen an increased level of interest in small, rapidly deployable, unmanned surface vehicles that can support other missions beyond mine countermeasure, the company’s Air, Land and Sea Systems Senior Vice President David Phillips told reporters last week.

Mine countermeasure systems tend to be expensive due to their required durability and protectiveness against mine blasts -- something not always necessary for certain missions, Phillips added.

“So, in reality, TSUNAMI really opens the door to support those kinds of missions and those use cases other than mine warfare, where a customer will be looking at a platform that is readily available, reliable, capable, scalable, and maybe most importantly, inexpensive,” he said.

Phillips acknowledged the Navy’s plans to thoroughly integrate unmanned systems throughout its operations, and said Textron has worked with the service on payload integrations besides mine countermeasures. The Navy is also a customer of Textron’s CUSV -- the service’s first small USV program of record -- which is currently deployed on littoral combat ships.

TSUNAMI will be able to provide flexibility for more missions beyond the CUSV’s capabilities, he added.

Despite this existing relationship with the Navy, Phillips said Textron’s goal is not to “wedge” TSUNAMI to fit within the Navy’s existing roadmap on unmanned integration.

“We've had discussions internationally, commercially, and with our own Navy about where they might be able to take this,” he told reporters. “I don't want to presuppose that. I've never been in the business of telling the Navy what they should do and what they should not do, just as I don't with the Army and the Marines and our other customers.”

The week ahead
By Tony Bertuca
January 13, 2025 at 5:00 AM

Senators are scheduled to hold a nomination hearing for defense secretary nominee Pete Hegseth this week. Meanwhile, senior defense officials are slated to speak at several public events.

Monday

The Center for Strategic and International Studies hosts a discussion with Air Force Secretary Frank Kendall.

The Defense Innovation Board meets.

Tuesday

The Senate Armed Services Committee holds a hearing to consider the nomination of Pete Hegseth to be defense secretary.

The Surface Navy Association hosts its annual symposium.

The Atlantic Council hosts a discussion with the assistant secretary of defense for special operations and low-intensity conflict.

Wednesday

The Center for Strategic and International Studies hosts a discussion on defense innovation challenges.

Friday

The Hudson Institute hosts a discussion on Navy shipbuilding and repair.

AFCEA NOVA hosts an Army IT Day in McLean, VA.

The INSIDER daily digest -- Jan. 10, 2025
By John Liang
January 10, 2025 at 2:13 PM

This Friday INSIDER Daily Digest has news on the Army's HADES intelligence aircraft program, Navy submarine procurement and more.

HADES is intended to be an advanced military aircraft system designed to gather critical intelligence from the air, helping the Army stay ahead of high-level threats:

Army eyes 'emerging requirement' for HADES ISR aircraft armed with launched effects

The Army is exploring plans to arm its High Accuracy Detection and Exploitation System (HADES) intelligence, surveillance and reconnaissance aircraft with new launched effects, seeking industry input on mounting released assets to a high-flying, fast-moving plane.

The CEO of HII spoke to reporters this week about submarine procurement:

Finalizing 17-sub buy will require a 'SAWS-like approach,' HII CEO says

Finalizing the delayed contract award for 17 new nuclear-powered submarines will require a "SAWS-like approach," HII CEO Chris Kastner said today, referring to a Navy proposal intended to combat submarine schedule delays and cost growth by restructuring how the vessels are paid for.

Inside Defense chatted this week with the Army's No. 2 civilian official:

Army under secretary says all-electric vehicles may still be a bit down the road

Outgoing Under Secretary Gabe Camarillo says the Army wants to prioritize hybrid electric drive vehicles and suggested recently that it may be too soon to move forward in developing an all-electric combat vehicle.

Based on his experience in the first Trump administration, during which time he worked at the Federal Aviation Administration's Office of Commercial Space Transportation then the National Space Council, Jared Stout said the incoming administration may take some steps to break down existing burdens on vendors with national security-related space businesses:

Former Trump official: Regulation, acquisition process stymieing space innovation

Though the Defense Department continues to talk about supporting commercial innovation and speeding acquisition, a former Trump administration official said space programs won’t be able to match the speed of technological advancement with the current acquisition and regulatory processes.

Defense Secretary Lloyd Austin was in Germany this week, where he presided over his last meeting of the multinational Ukraine Defense Contact Group:

Austin moves final tranche of Ukraine aid amid political uncertainty and Trump's arrival

The Biden administration announced what is expected to be its final military aid package for Ukraine today, authorizing $500 million in weapons transfers and leaving nearly $4 billion in spending authority unused and at the disposal of President-elect Trump, who has been critical of U.S. aid to Kyiv.

Navy seeking handheld C-sUAS solutions
By Nick Wilson
January 10, 2025 at 11:42 AM

The Navy is soliciting industry for handheld, counter-drone systems that use electronic countermeasures to defend against small, unmanned aircraft systems, according to a request for information published this week.

“The C-sUAS handhelds are used to provide radio frequency (RF) and Global Positioning Systems (GPS) disruption. This allows users to control landing of the C-sUAS on the spot, return to the operator, or to the starting point,” the notice states.

The RFI was issued Jan. 7 by the Naval Air Warfare Center Aircraft Division Webster Outlying Field (NAWCAD WOLF), a Maryland-based installation that develops and integrates warfighting technologies for wider use.

Respondents are asked to provide system specifications including weight, dimensions, power source, jamming capabilities operating time and range. Responses are requested by Feb. 6.

The INSIDER daily digest -- Jan. 9, 2025
By John Liang
January 9, 2025 at 1:20 PM

This Thursday INSIDER Daily Digest has news on space innovation, Ukraine military aid, the future of irregular warfare and more.

Based on his experience in the first Trump administration, during which time he worked at the Federal Aviation Administration's Office of Commercial Space Transportation then the National Space Council, Jared Stout said the incoming administration may take some steps to break down existing burdens on vendors with national security-related space businesses:

Former Trump official: Regulation, acquisition process stymieing space innovation

Though the Defense Department continues to talk about supporting commercial innovation and speeding acquisition, a former Trump administration official said space programs won’t be able to match the speed of technological advancement with the current acquisition and regulatory processes.

The announcement of the Biden administration sending its final military aid package to Ukraine this week coincides with Defense Secretary Lloyd Austin's trip to Germany, where he is presiding over his last meeting of the multinational Ukraine Defense Contact Group:

Austin moves final tranche of Ukraine aid amid political uncertainty and Trump's arrival

The Biden administration announced what is expected to be its final military aid package for Ukraine today, authorizing $500 million in weapons transfers and leaving nearly $4 billion in spending authority unused and at the disposal of President-elect Trump, who has been critical of U.S. aid to Kyiv.

The United States might have the higher-quality people and technology to outmatch adversaries, but only if it doesn't get bogged down in requirements and rigid funding rules:

Operator-led procurements are needed to keep up with adversaries, assistant defense secretary says

As the future of irregular warfare shifts, innovation also needs to change, Christopher Maier, assistant defense secretary for special operations and low-intensity conflict, argued this week.

The Army reallocated more than $1 billion in planned future funding from the Stryker Upgrade program in its fiscal year 2025 budget request documents:

'Balance the books': Stryker program stalls to fund other Army initiatives

The Stryker Upgrade program is getting gutted, and outgoing Army Under Secretary Gabe Camarillo blames years of flat funding.

The Government Accountability Office this week released its Dec. 23, 2024 redacted decision on L3Harris' protest of an Army spy plane contract:

GAO: L3Harris bid for HADES award lacked necessary technical detail

An ultimately unsuccessful bid by L3Harris for the Army's High Accuracy Detection and Exploitation System (HADES) spy plane program failed due to a lack of technical detail the company provided in its proposal, according to the Government Accountability Office.

Document: GAO decision on L3Harris protest of Army HADES contract award to Sierra Nevada

Anduril acquires air and missile defense contractor's radar, C2 businesses
By Theresa Maher
January 9, 2025 at 12:34 PM

Defense contractor Anduril is acquiring Numerica Corp.'s radar and command and control businesses, according to a company press release published today.

Terms of the deal were not disclosed to Inside Defense in emails with an Anduril spokesperson.

As part of the deal, Numerica’s short-range air defense Spyglass and Spark radars are set to join Anduril’s existing portfolio of automated sensing solutions, according to the release.

Anduril also plans to manufacture Spyglass and Spark at its future Arsenal-1 manufacturing facility aimed at “hyperscaling” the production of critical defense technology, according to the release.

Mimir, Numerica’s C2-enabling software, will also join Anduril’s existing portfolio of mission-centric software capabilities. The technology -- with its advanced tracking, track correlation and theater-wide fusion capabilities -- complements Anduril’s Lattice AI-powered, open software integration platform, the company said.

With the integration of Numerica’s radar and C2 systems into the Lattice platform, “Anduril will deliver solutions designed to operate effective, full-force combat operations,” the company said.

The acquisition announcement comes as Anduril ramps up its partnerships with other companies around AI-enabled software, including OpenAI and Palantir.

It also follows Anduril’s December announcement unveiling its Lattice Partner Program -- which grants other defense software vendors using its Lattice software developer kit access to support and resources for the acceleration of application development and streamlined integrations into its Lattice system.

Numerica had been among 11 vendors that signed onto the partner program at its outset.

Army issues RFI for ISR Launched Effects capabilities
By Dan Schere
January 8, 2025 at 2:41 PM

The Army issued a request for information today seeking aerial intelligence, surveillance and reconnaissance Launched Effects capabilities that can be integrated on medium/high-altitude aerial platforms.

The Army is developing three Launched Effects variants:

  • Short Range (range of 40 to 125 km)
  • Medium Range (range of 100 to 500 km)
  • Long Range (range of 200 to 1,000 km)

According to today’s notice, the Special Electronic Mission AC Product Directorate within the Fixed Wing Project Office has an emerging requirement for a Launched Effects Capability to be integrated on a medium/high-altitude, higher airspeed aerial-ISR aircraft. An operational capability is to be demonstrated in the “Fiscal Year 2026 timeframe.”

The Launched Effects systems would be integrated onto an aircraft that can operate at altitudes higher than 41,000 feet above mean sea level and above 400 knots “true airspeed” for more than seven hours, according to the notice.

The LE would be carried and deployed from “pylons at the inboard or outboard wing hardpoint stations” of the aircraft in a “non-pressurized environment,” according to the Army.

Vendors are asked to submit questions about the RFI by Jan. 15 and must submit synopsis responses and comments by Feb. 7.