The Insider

By Tony Bertuca
September 11, 2024 at 12:57 PM

House Speaker Mike Johnson (R-LA), lacking the support of key Republicans, has decided to withdraw a stopgap continuing resolution today that proposes to avert a partial government shutdown for the next six months beyond the looming Sept. 30 deadline and would require proof of U.S. citizenship to vote in federal elections.

The speaker told reporters that the CR and the attached voting security bill would be pulled from the House floor schedule today to give the GOP time to “build consensus” over the weekend, according to a transcript provided by Johnson’s office.

“Nope, no vote today because we're in the consensus-building business here in Congress with small majorities,” he said. “That's what you do. That's what I've been doing since I became speaker. We're having thoughtful conversations, family conversations within the Republican conference, and I believe we'll get there. So, people have concerns about all sorts of things. That's how the process works, and sometimes it takes a little more time.”

Several Republicans, including House Armed Services Committee Chairman Mike Rogers (R-AL), said earlier this week that they did not support Johnson’s six-month CR proposal because it would hurt the Defense Department. Under the CR, DOD’s budget would be frozen at the level Congress enacted in fiscal year 2024 and it would be prohibited from spending on new modernization programs or increasing weapons production.

House Democrats also oppose the CR and the voting bill, leaving Johnson with a thin margin of error on the vote.

Meanwhile, the Democrat-controlled Senate is demanding a “clean” CR free of the voting security bill Johnson has attached to it. The White House has also said that President Biden intends to veto Johnson’s CR proposal if it were to somehow arrive at his desk.

Johnson, however, said he would continue to work to pass both bills.

“Congress has a lot of responsibilities, but two primary obligations responsibly fund the government and make sure that our elections are free and fair and secure,” he said. “And that's what we're working on. And we'll continue and we'll keep you posted.”

Earlier this week, Defense Secretary Lloyd Austin sent a letter to Congress detailing the ways in which the six-month CR would harm military readiness and weapons modernization.

“A six-month CR would set us significantly behind in meeting our pacing challenge highlighted in our National Defense Strategy -- the People’s Republic of China (PRC),” he wrote. “The PRC does not operate under CRs. Our ability to execute our strategy is contingent upon our ability to innovate and modernize to meet this challenge, which cannot happen under a CR.”

By Abby Shepherd
September 11, 2024 at 12:45 PM

(Editor's Note: This has been updated to reflect an L3 Harris statement released on Sept. 12.)

The Navy recently awarded L3Harris Technologies a contract worth over $587 million for the engineering and manufacturing development of the Next Generation Jammer Low Band system, part of the plan to replace the current ALQ-99 Tactical Jamming System used on the EA-18G Growler aircraft.

“NGJ-LB will meet current and emerging electronic warfare threats and increase the lethality of 4th and 5th generation platforms and strike weapons,” Program Executive Officer for Tactical Aircraft Programs Rear Adm. John Lemmon said in a Navy news release. “The Navy will partner with L3Harris to get this key capability into the hands of the warfighter.”

NGJ-LB is scheduled to reach early operational capability in 2029 according to the Navy. The system is the service’s plan to recapitalize its airborne electronic-attack capabilities. L3Harris plans on delivering eight operational prototype pods to the Navy for "fleet assessment and additional test assets for airworthiness and design verification over the next five years," according to a Sept. 12 company statement.

The system’s contract was originally awarded to L3Harris for over $544 million in 2020 yet faced opposition at the time. Northrop Grumman alleged to the Government Accountability Office that L3Harris had conflicts of interest, but GAO dismissed these charges.

This was followed by another Northrop Grumman filing to GAO, which was sent to the Court of Federal Claims, prohibiting the Navy from moving the EMD award forward. In 2022, all three parties agreed in a Justice Department settlement to re-open the competition, with a goal to determine a source by early 2023.

“The contract award is a major step for our fleet as well as the" Royal Australian Air Force, Airborne Electronic Attack Systems Program Office Manager Capt. David Rueter said in the news release. “Our partnership with Australia to develop the newest AEA jamming capability exhibits our joint commitment to ensure continued superiority over the electromagnetic spectrum.”

By Nick Wilson
September 11, 2024 at 10:51 AM

The Navy has awarded Texas-based non-profit BlueForge Alliance a $951 million contract for submarine industrial base work, according to a Pentagon announcement.

Under the sole-source award, BlueForge will “support planning, resourcing, coordinating, and uplifting the U.S. Submarine Industrial Base and Foreign Military Sales requirements,” the Tuesday announcement states.

The Navy has already tapped BlueForge to oversee various efforts to strengthen the submarine industrial base. Founded in 2022, The organization has run advertising campaigns to attract workers to the industry, including television ads and the recruiting website buildsubmarines.org.

If all options are exercised, the value of the contract could climb to over $980 million, the announcement continues, indicating $503 million of the Navy’s fiscal year 2024 funding will be obligated at time of the award.

The award comes amid continued Navy efforts to improve submarine production to a sustained rate of at least one Columbia- and two Virginia-class boats per year. With both programs running behind schedule, the Navy’s FY-25 budget proposes a $3.9 billion single-year submarine industrial base investment and $11.1 billion over the next five years.

However, Defense Secretary Lloyd Austin has warned that a six-month stopgap spending package proposed by House Republicans would compromise these efforts and lead to further delays for the Columbia program.

By Tony Bertuca
September 10, 2024 at 5:03 PM

The Pentagon is urging the Senate to confirm Lt. Gen. Ronald Clark as the top Army commander in the Pacific amid a hold put in place by Sen. Tommy Tuberville (R-AL), who is blocking the nomination over concerns that Clark played a role in the secrecy surrounding Defense Secretary Lloyd Austin's hospitalization earlier this year.

Brig. Gen. Pat Ryder, the Pentagon’s top spokesman, said today the Senate should confirm Clark to be the Army’s top general in the Pacific -- the Defense Department’s “priority theater” -- as he is “a highly qualified senior officer” who has served in numerous leadership positions throughout his career.

“He's exactly the kind of leader we need,” Ryder said. “I just can't speak highly enough of [Lt. Gen.] Clark and his qualifications for this position.”

Blocking DOD nominees is nothing new for Tuberville, who faced criticism from Democrats and Republicans alike last year for holding scores of DOD nominations and promotions over his opposition to the department’s travel and leave policy for servicemembers seeking abortion services. He eventually relented, lifting a blanket hold on more than 400 military nominees.

Tuberville’s office told the Washington Post that the senator is concerned that Clark, while he served as a senior aid to Austin, did not immediately alert the White House about the defense secretary’s condition.

Ryder said the Pentagon’s own internal review found “it was clear that at no time was there a gap in the chain of command” while Austin was hospitalized. The review, however, has been criticized by GOP lawmakers and the DOD inspector general has launched its own investigation into the matter. The IG’s office did not immediately respond to a request for information on the status of the review, which was announced in January.

Austin has testified before Congress and apologized for the secrecy surrounding his hospitalization, which was related to a urinary tract infection following surgery to treat prostate cancer.

Meanwhile, Senate Armed Services Committee Chairman Jack Reed (D-RI) told Politico he may work with other lawmakers to override Tuberville’s hold on Clark, who was first nominated in July.

Back at the Pentagon, Ryder said the Senate should also consider the disruptions Tuberville’s previous holds had on the military.

“We would urge the Senate to confirm all of our qualified nominees and, as we’ve seen before, these kinds of holds can really undermine our military readiness,” he said.

By Theresa Maher
September 10, 2024 at 3:20 PM

The third India-U.S. Defense Acceleration Ecosystem (INDUS-X) Summit on Monday featured the signing of an “upgraded” memorandum of understanding between the Defense Innovation Unit and its Indian counterpart, according to a Defense Department announcement today.

The MOU signed by DIU and the Indian Ministry of Defense’s Defense Innovation Organization “demonstrates a shared commitment to expanding cooperation on defense innovation between DIU and DIO to expand their respective militaries’ access to cutting-edge technologies through non-traditional processes,” the release said.

The summit, held in Silicon Valley, CA, also saw the release of a new INDUS-X webpage outlining the program’s goals, partnership opportunities, participating companies and upcoming events, according to DOD.

The Senior Advisory Group, a group of U.S. and Indian officials, also hosted their third meeting at the summit, along with the Senior Leaders Forum. Both meetings focused on establishing new initiatives and furthering the progress of current activities under INDUS-X.

The summit comes seven months after the second, held in New Delhi, India, during which DOD and the Indian Ministry of Defense announced the winners of the first two INDUS-X challenges focusing on leveraging commercial technology for military use.

In conjunction with the second summit in February, the Pentagon also released an INDUS-X fact sheet to outline the initiative’s accomplishments to date and its near-term priorities.

By John Liang
September 10, 2024 at 1:27 PM

Coverage of a proposed GOP-led stopgap continuing resolution dominates this Tuesday INSIDER Daily Digest.

We start off with the White House threatening to veto the continuing resolution proposed by the House speaker:

Johnson preps for vote on six-month CR, Biden threatens veto

House Speaker Mike Johnson (R-LA) is planning to schedule a Wednesday vote on a proposed six-month continuing resolution that faces bipartisan opposition and has drawn a veto threat from the White House.

Document: Statement of administration policy on House GOP's CR

We also have additional coverage of Defense Secretary Lloyd Austin's letter detailing the problems a CR would mount for the Navy:

Austin: Six-month CR further jeopardizes Columbia schedule

The six-month continuing resolution proposed by House Republicans would delay funding for several Columbia-class submarines, driving further cost growth and schedule challenges for the already-strained program and jeopardizing modernization of the sea-based leg of the nuclear triad, according to Defense Secretary Lloyd Austin.

The Air Force:

Austin: Six-month CR may again derail Air Force Operational Imperatives

After finally getting the go-ahead in the fiscal year 2024 budget to kick-off several key Air Force projects as part of its Seven Operational Imperatives, a proposed six-month temporary spending bill for FY-25 is again threatening to delay the service's swift modernization and readiness plans, according to a new letter Defense Secretary Lloyd Austin has sent to Capitol Hill leadership.

. . . and the Army:

Austin says proposed CR would push GMLRS production lead time from 24 to 30 months

Production lead time for the Guided Multiple Launch Rocket System would increase from 24 to 30 months under a six-month continuing resolution that House Republicans have proposed, according to a letter from Defense Secretary Lloyd Austin.

A new Government Accountability Office report finds the Defense Department "has made some progress developing the necessary ground, space, and user equipment to use M-code. But DOD faces challenges with all 3 segments":

Air Force delays risk pushing Pentagon GPS modernization into 2030s

The Air Force is facing space-related program delays that could push the entire Defense Department effort to modernize the Global Positioning System into the 2030s, according to a new Government Accountability Office report.

Document: GAO report on GPS modernization

Planned for launch in 2026, a small satellite dubbed Q4S will be the first to test some quantum entanglement swapping capabilities from space:

Boeing planning 2026 demo of quantum communications on-orbit

Boeing plans to launch a first-of-its-kind quantum communication satellite within two years to demonstrate capabilities needed for a global quantum internet, according to the program's chief engineer.

By Shelley K. Mesch
September 10, 2024 at 12:34 PM

Space Systems Command awarded a $188 million follow-on production contract to Sev1Tech to expand the meshONE-Terrestrial network, the command announced today.

Under the contract, meshONE-T services will become available in more than 85 locations, according to SSC, with around-the-clock managed transport services and enterprise-wide upgrades.

Designed as a scalable, resilient and cybersecure Wide Area Network, meshONE-T supports the Space Force and the Defense Department’s broader Combined Joint All Domain Command and Control effort by connecting data producers and users and providing diversified communication paths.

Sec1Tech won the first award for a meshONE-T prototype for $46.5 million through the Space Enterprise Consortium in September 2021.

By Dan Schere
September 10, 2024 at 12:22 PM

Army acquisition chief Doug Bush said today that he expects the Army will have awarded $350 million in contracts under the Small Business Innovation Research (SBIR) program by the end of fiscal year 2024, surpassing last year's total.

SBIR, established by Congress more than 40 years ago, aims to increase the participation of innovative small businesses within the federal government. Bush, speaking at a small business summit on the campus of George Mason University Tuesday, said the Army awarded about $317 million and 368 contracts under the SBIR program in FY-23.

The acquisition chief said the Army has been focusing more lately on improving the speed of contracting for small businesses. He noted SBIR prototyping awards are now made in 30 days on average, whereas a normal timeframe in the past would have been six months.

“Small businesses, especially new ones, exist in a highly competitive marketplace. It moves faster every day. We know that. So, speed to contract was one of the main things we focused on,” he said.

Bush also pointed to the establishment of the Army SBIR Contracting Center of Excellence three years ago as a factor in improving the speed of contracting.

“We have, through just reorganizing ourselves and focusing talent, dramatically moved the dial on speed to [contracting], although I’m sure [there are] examples where we could’ve done better,” he said.

By John Liang
September 9, 2024 at 3:14 PM

General Dynamics Information Technology announced today that it has bought artificial intelligence and machine learning company Iron EagleX for an undisclosed amount.

Iron EagleX provides AI/ML, cyber, software development and cloud services for special operations forces and the intelligence community.

"The acquisition expands GDIT's portfolio of differentiated technology capabilities and further strengthens its ability to support defense and intelligence missions across all warfighting domains," a GDIT statement reads. "It is also a key part of the company's technology investment strategy launched last year, which includes investments in technologies such as AI, cyber, software development and quantum."

By Theresa Maher
September 9, 2024 at 3:13 PM

The Defense Department is awarding $4.2 million to Rare Earth Salts to develop and expand the production of terbium, a crucial element for rare earth magnets in many key defense systems, according to an announcement today.

The award, made via the Defense Production Act Investments (DPAI) office, will allow the Beatrice, NE-based company to develop and expand production of terbium oxide from recycled fluorescent light bulbs, according to DOD.

“This award adds a domestic source for one of the most difficult-to-obtain rare earth elements,” Laura Taylor-Kale, assistant secretary of defense for industrial base policy, said in the DOD release. “Rare Earth Salts’ capability will help the United States establish a mine-to-magnet supply chain without reliance on foreign sources of material.”

Terbium, which makes up less than 1% of total rare earth content in most deposits, “adds temperature resiliency to neodymium iron boron magnets” used in key defense systems like aircraft, submarines and missiles, according to the release.

The company will also recover rare earths lanthanum, cerium, europium and yttrium -- which each serve commercial and defense applications.

By aiding in the establishment and expansion of production for these rare earth elements via the Nebraska company, the funding will also support the 2024 National Defense Industrial Strategy’s priority to increase supply chain resilience “by expanding domestic production and sustainment of critical production,” DOD said.

The investment will also help bolster Rare Earth Salts’ unique position as “one of the only terbium oxide producers outside of China,” according to the release.

The funding marks the latest of more than 50 awards granted via the DPAI office since the beginning of fiscal year 2024, totaling more than $518 million, according to the Pentagon.

By John Liang
September 9, 2024 at 2:18 PM

This Monday INSIDER Daily Digest has news on House Republicans' proposed stopgap continuing resolution, Defense Department cybersecurity efforts and more.

House Republicans' proposed continuing resolution hasn't made the Pentagon's top civilian a fan:

Austin comes out swinging against GOP's proposed six-month CR

The House GOP's proposal to pass a six-month stopgap continuing resolution would have "devastating" impacts on military readiness and modernization, including the Pentagon's new Replicator drone program, according to a new letter Defense Secretary Lloyd Austin has sent to congressional leaders.

Document: Austin letters to lawmakers on CR

Document: House GOP lawmakers' FY-25 CR

Austin also spoke at a meeting of the Ukraine Defense Contact Group at Ramstein Air Base, Germany, last week:

Austin: U.S. working to co-develop substitute S-300 and R-27 missiles with Ukraine

Defense Secretary Lloyd Austin announced today that the United States, with help from several European companies, is working with the Ukrainian weapons industry to "design and build" substitute munitions for the Soviet-era S-300 surface-to-air missile system and the R-27 air-to-air missile.

More coverage from last week's Billington Cybersecurity Conference:

New Pentagon cyber policy official seeks to elevate CYBERCOM's priorities

The dual role of assistant secretary of defense for cyber policy and principal cyber adviser to the defense secretary allows the person in it to act as liaison and streamlining agent, according to Michael Sulmeyer, the first Pentagon official to hold the position.

General Dynamics, with its partner Iridium, will continue its ground management and integration, operations and sustainment work for the Proliferated Warfighter Space Architecture through fiscal year 2029:

General Dynamics awarded $492 million to continue ground management for SDA

The Space Development Agency has awarded General Dynamics a $491.6 million contract to continue its ground management and integration work for the agency's constellation of tracking and data transport satellites.

The Army has undertaken a number of initiatives to increase 155mm munitions production capacity such as opening a new modular metal parts production facility in Mesquite, TX earlier this year:

Bush says engineering challenges have caused minor delays with 155mm round production

Army acquisition chief Doug Bush says the Army is still on track to meet its objective of producing 100,000 155mm rounds per month by late fiscal year 2025, but various engineering challenges in the production process have led to delays that can sometimes last a few weeks.

By Theresa Maher
September 9, 2024 at 10:24 AM

The Defense Department awarded $25.8 million to Honeywell to domestically manufacture or procure strategic radiation-hardened microelectronics, according to an announcement Friday.

The award, made via the Defense Production Act Investments (DPAI) office, will fund strategic radiation-hardened microelectronics production via a Defense Microelectronics Agency-approved process, according to DOD.

“The DOD requires trusted and reliable radiation-hardened microelectronic and subcomponents to support strategic and space missions,” Assistant Secretary of Defense for Industrial Base Policy Laura Taylor-Kale said in the press release. “This project ensures components are available to meet demand for current and future U.S. systems.”

The Pentagon’s investment will also sustain 90-nanometer technology development at Honeywell’s microelectronics foundry in Minnesota, according to the press release. The technology plays a key role in semiconductor manufacturing to create integrated circuits -- also known as microchips -- with a minimum feature size of 90nm.

By aiding the production and technology development for strategic radiation-hardened microelectronics and its subcomponents at the Minnesota foundry, the investment will also support the 2024 National Defense Industrial Strategy’s goal to “expand domestic production and increase supply chain resilience,” according to the release.

The funding that DOD announced would go to Honeywell marks the latest of more than 50 awards granted via the DPAI office since the beginning of fiscal year 2024, totaling more than $514 million, according to the Pentagon.

By Tony Bertuca
September 9, 2024 at 5:00 AM

Senior defense officials are scheduled to speak at several events around Washington this week.

Monday

The Atlantic Council hosts a discussion on climate change and its impact on national defense and global security.

Tuesday

The U.S. Chamber of Commerce holds its Global Aerospace Summit in Washington. The event runs through Wednesday.

The FedTalks 2024 Summit is held in Washington.

Thursday

The Senate Armed Services Committee holds a nomination hearing for Air Force Lt. Gen. Steven Nordhaus to be general and chief of the National Guard Bureau, and Vice Adm. Alvin Holsey to be admiral and commander of U.S. Southern Command.

The Stimson Center hosts a discussion with Army Secretary Christine Wormuth.

By John Liang
September 6, 2024 at 1:52 PM

This Friday INSIDER Daily Digest has news on the F-35 Joint Strike Fighter program breaking a $2 trillion cost threshold, the U.S. and its allies ramping up work with the Ukrainian weapons industry and more.

We start off with news on the Defense Department's biggest acquisition program in history:

F-35 program breaches the $2 trillion cost threshold in new report to Congress

The F-35 Joint Strike Fighter program has reported a new cost estimate that breaks the $2 trillion barrier to acquire and operate, including a revised aircraft and engine tab of $485 billion that essentially doubles the original price tag formulated based on Lockheed Martin's design.

Document: MSAR on the F-35 program

Defense Secretary Lloyd Austin, at a meeting this week of the Ukraine Defense Contact Group at Ramstein Air Base, Germany, said the United States and its allies will need to invest in Ukraine's indigenous defense industry if the nation is to make a long-term stand against Russia:

Austin: U.S. working to co-develop substitute S-300 and R-27 missiles with Ukraine

Defense Secretary Lloyd Austin announced today that the United States, with help from several European companies, is working with the Ukrainian weapons industry to "design and build" substitute munitions for the Soviet-era S-300 surface-to-air missile system and the R-27 air-to-air missile.

The Army has been steadily ramping up its production of the artillery for the last couple of years to support Ukraine in its ongoing conflict with Russia:

Bush says engineering challenges have caused minor delays with 155mm round production

Army acquisition chief Doug Bush says the Army is still on track to meet its objective of producing 100,000 155mm rounds per month by late fiscal year 2025, but various engineering challenges in the production process have led to delays that can sometimes last a few weeks.

Air Force acquisition czar Andrew Hunter this week talked about a "next-generation acquisition model," reflective of the next-generation family of systems and programs the service is prioritizing for air dominance and aerial refueling:

Air Force's new software-based acquisition model is shaking up the way industry does its bidding

As autonomy and other innovative technology emerge rapidly out of research and development and into the field, the Air Force is changing the way it thinks about acquisition to center systems over platforms, forcing industry to also pivot how it presents products.

Coverage from this week's Billington Cybersecurity Summit:

Neuberger teases potential cyber executive order focusing on lessons learned from AI work

Deputy National Security Adviser for Cybersecurity Anne Neuberger highlighted the benefits of artificial intelligence when it comes to cybersecurity at the Billington Cybersecurity Summit and offered a sneak peek into a potential cyber executive order that will incorporate lessons learned.

Software modernization guidance coming, acting CIO says

The Defense Department is preparing to release a new instruction to further guide implementation of its software modernization strategy, Leslie Beavers, acting chief information officer for the Pentagon, said Wednesday.

By Nick Wilson
September 5, 2024 at 4:12 PM

Navy Secretary Carlos Del Toro violated U.S. law when he made statements supporting President Biden’s reelection bid during a public appearance earlier this year, according to a Thursday Office of Special Counsel report.

While answering questions after a January speech in London, Del Toro made multiple statements endorsing Biden’s candidacy and opposing former President Trump. These comments, which occurred prior to Biden’s exit from the race, violate the Hatch Act, according to an OSC report submitted to the White House.

The 1939 law prevents federal employees from engaging in political activity while acting in an official capacity and forbids them from using their official authority to influence the results of an election.

“When speaking in his official capacity on a taxpayer-funded trip, Secretary Del Toro encouraged electoral support for one candidate over another in the upcoming presidential election. By doing so, he crossed a legal line and violated the Hatch Act,” Special Counsel Hampton Dellinger said in the report. “This is especially troubling because Secretary Del Toro has himself acknowledged that military work and partisan politics should not be mixed.”

While answering questions after a Jan. 25, 2024 speech at the Royal United Services Institute in London, Del Toro said, “I'm confident that the American people will step up to the plate come November and support President Biden for a second term as our commander-in-chief, so that we can continue to work together as free democratic countries respect each other around the globe," the report states.

Del Toro later self-reported these remarks to OSC. The watchdog’s report also includes a written response from Del Toro’s lawyer, Michael Bromwich, arguing the Navy secretary’s comments do not constitute a violation of the Hatch Act because they were a “spontaneous and unpremeditated” response to a question and not part of prepared remarks.

However, Dellinger and OSC reject this argument and indicate that although Del Toro self-reported the comments, this should not absolve him. It is unclear what consequences Del Toro will face as a result of the violation.

Asked about the OSC report during a press briefing today, Deputy Pentagon Press Secretary Sabrina Singh emphasized the importance of complying with federal law but made no specific comment on the report’s findings, saying it is still under review at the Defense Department.