The Insider

By John Liang
January 29, 2024 at 2:14 PM

Mercury Systems last week announced it hired Stuart Kupinsky as executive vice president and chief legal officer.

Reporting to Mercury Chairman and CEO Bill Ballhaus, Kupinsky will be responsible for the company’s legal strategy, including mergers and acquisitions, intellectual property and enterprise contracts, according to a Mercury statement.

Kupinsky succeeds Christopher Cambria, who has been Mercury’s general counsel and secretary since 2016. He will remain with the company through March and will consult for one year afterward "to ensure a smooth transition," the statement reads.

Kupinsky comes to Mercury after serving as chief legal officer and general counsel for five technology companies, including Blackboard through its sale to Anthology, now one of the largest global education technology companies, and Tekelec, a public global telecommunications technology company serving the Defense Department until its sale to Oracle.

Kupinsky was also chief counsel for FirstNet, a multibillion-dollar independent government agency building a nationwide network for first responders. Earlier in his career, he worked as a Justice Department trial attorney and as a law clerk on the U.S. Court of Appeals for the Federal Circuit.

By Abby Shepherd
January 29, 2024 at 2:08 PM

Huntington Ingalls Industries will lead the refueling and complex overhaul of aircraft carrier Harry S. Truman (CVN-75), the Defense Department announced Friday.

The $913 million contract awarded to HII will consist of “engineering, design, material procurement and fabrication, documentation, resource forecasting and pre-overhaul inspections,” the announcement added.

“Comprehensive planning is vitally important to the overall success of an engineering and construction project of this magnitude on the aircraft carriers that serve our nation,” said Rob Check, NNS vice president of in-service aircraft carrier programs, in a company statement. “This contract allows us to properly plan for each step in the overhaul process, from preparing for the ship’s arrival at NNS to its redelivery back to the Navy, so that Harry S. Truman and its sailors can continue to protect peace and prosperity around the world.”

Advanced planning and long-lead-time material procurement is set to be completed by June 2026, according to the contract.

The contract follows debate in 2019 over whether to push forward with refueling the aircraft carrier, with the Navy saying that retiring the ship would allow for greater exploration of unmanned systems technology. Yet, lawmakers from both parties opposed the ship’s retirement.

The contract announcement also comes ahead of HII’s fourth-quarter earnings call this Thursday.

By John Liang
January 29, 2024 at 1:25 PM

This Monday INSIDER Daily Digest has news on several major Marine Corps acquisition programs, the Pentagon's search for persistent sensing technologies and more.

With the V-22 Osprey tiltrotor fleet grounded, the Amphibious Combat Vehicle yet to be deployed and the landing ship medium not yet on contract, the Marine Corps is operating without critical platforms that, among other things, serve as logistics connectors for stand-in forces in the Indo-Pacific:

Marine Corps working to fix Osprey and ACV issues, stands by platforms

The Marine Corps remains confident in two key connector capabilities -- the V-22 Osprey and Amphibious Combat Vehicle -- despite recent training accidents in which service members lost their lives, according to Assistant Commandant Gen. Christopher Mahoney, who said the service is working to remedy the issues that caused these incidents.

The Thunderstorm series of events are collaboration efforts between DOD and interagency partners to unearth new technologies and supply feedback quickly to developers for faster technology maturation:

DOD looking for industry collaboration on persistent sensing tech

The Defense Department put out a notice today requesting private industry, government research and development organizations and academia to identify innovative technologies that could be included in Thunderstorm 24-2.

The Fiscal Year 2024 National Defense Authorization Act includes a provision requiring the defense secretary to produce by the end of June an Indo-Pacific Missile Strategy that would explain Army and Marine Corps plans for sinking Chinese ships and attacking high-value targets on land with growing new inventories of guided missiles:

DOD required to prepare ground-launched conventional missile strategy for Indo-Pacific

The Defense Department this summer must produce a strategy for ground-based theater-range conventional missiles in the Indo-Pacific, explaining to Congress how billions of dollars in planned new offensive strike capabilities -- cruise, ballistic and hypersonic -- will be deployed across the region to counter China.

William Streilein, chief technology officer in the chief digital and artificial intelligence office, spoke last week at the Google Defense Forum in Arlington, VA:

Senior DOD official says cultural shift needed for innovation adoption

A senior Defense Department official today pointed out the culture shifts the Pentagon needs to make to successfully adopt more innovative solutions.

The Army released its two-page space vision this month that outlines an increased focus on incorporating space-related capabilities into future combat operations:

Army targeting FY-26 POM for space vision

As the Army begins to execute its Space Vision Supporting Multidomain Operations released earlier this month, the policy will likely influence the fiscal year 2026 program objective memorandum (POM), according to a service official.

By Abby Shepherd
January 29, 2024 at 12:55 PM

The Navy's Science and Technology Board plans to visit Pearl Harbor facilities and conduct interviews with officials this week on warfighting advantage and emerging technologies.

In closed meetings at Naval Station Pearl Harbor in Honolulu, HI, from Monday to Wednesday board members and subject matter experts will discuss expanding “warfighting advantage through technologies that have the potential to disrupt the nature of warfighting,” according to a Federal Register notice posted today.

Once completed, the meetings will aid the development of recommendations meant to support Navy secretary tasking, the notice added.

By Tony Bertuca
January 29, 2024 at 5:00 AM

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

Wednesday

The Potomac Officers Club hosts its annual R&D summit.

The Hudson Institute hosts a discussion on integrating autonomous systems into AUKUS Pillar Two.

House Select Committee on the Chinese Communist Party holds a hearing with Gen. Paul Nakasone, chief of U.S. Cyber Command.

Thursday

The Senate Armed Services Committee holds a hearing to consider Adm. Samuel Paparo to be chief of U.S. Indo-Pacific Command.

By Vanessa Montalbano
January 26, 2024 at 12:59 PM

Boeing will commence the first 13 deliveries of its MH-139 Grey Wolf helicopter to the Air Force this year, a company spokesperson told Inside Defense.

The news comes after the program’s first operational helicopter moved out of the final production stage and took its first flight at the Leonardo Helicopters facility in Philadelphia late last month.

The MH-139 is a multimission aircraft meant to patrol nuclear missile silos, shuttle high-ranking officials around the National Capital Region, and provide some tactical airlift capabilities. Boeing and Leonardo were awarded a contract in 2018 to recapitalize the Air Force’s Vietnam-era UH-1N Huey fleet.

In 2022, the Air Force accepted an initial four Grey Wolf prototypes for military testing.

“We are committed to advancing this program and have achieved another significant milestone with the first production aircraft," Azeem Khan, MH-139 program director, said in a statement. "This accomplishment positions us to complete outstanding testing and move closer to delivering this critical capability to the U.S. Air Force."

The program finally received milestone C approval from the Air Force in March of last year to kick off low rate initial production after facing a 17-month delay. Procurement of the Grey Wolf was ultimately deferred from the fiscal year 2022 budget to FY-23 due to pending completion of three supplemental civil airworthiness certifications to allow for military flight.

The Boeing spokesperson said the company will continue its required Federal Aviation Administration testing as it prepares for initial deliveries. The service has said it plans to purchase 84 Grey Wolf helicopters to replace 63 aging Hueys.

By Thomas Duffy
January 26, 2024 at 11:55 AM

This end of the week INSIDER Daily Digest starts off with news from Northrop on the Air Force’s newest bomber, Congress being briefed on a new unmanned program, news about the upcoming Air Force budget release, a senior congressional Republican pushing for a major defense spending increase and more.

Northrop is taking a dollar hit on the first production B-21 aircraft:

Northrop reports $1.2 billion charges on first B-21 LRIP lot

Northrop Grumman will lose $1.17 billion on the first lot of the B-21 Raider’s low-rate initial production and will likely take charges on the next four lots, the business announced in its year-end earnings call today.

Congress is getting information on the Defense Department’s new unmanned aircraft plan:

DIU official says Congress being briefed on Replicator

A senior Defense Innovation Unit official said today that Congress is being briefed about the Replicator initiative, adding that military services are working on selecting specific systems suitable to meet the Pentagon’s requirements for thousands of small, “attritable,” autonomous drones.

An Air Force official this week talked about the upcoming budget release:

Air Force to highlight integration, implementation in 2025 budget

The Air Force will focus on integration, sustainment and implementation in its not-yet-released fiscal year 2025 budget, two senior service officials said today during an event at the Center for Strategic and International Studies.

A senior GOP senator wants to see a big defense spending boost:

Wicker laying groundwork to push for defense spending to be 5% of GDP

Some of Washington’s top conservatives gathered at the Heritage Foundation today to lament the think tank’s annual assertion that the U.S. military is underfunded and too small, with Sen. Roger Wicker (R-MS) calling for the federal government to “go big” and put 5% of the gross domestic product into national defense spending.

The Navy is moving ahead with an expanded Tomahawk missile production:

Tomahawk Block V production expansion begins, Navy official says

Using targeted industrial base investments, the Navy has begun expanding the annual production and recertification capacity for the newest version of the Tactical Tomahawk missile, according to a service official.

By Tony Bertuca
January 26, 2024 at 5:00 AM

Zeno Power, which in May was awarded a $30 million Air Force contract to build a satellite powered by nuclear waste, has announced a new deal with the Energy Department by which it will obtain radioactive material needed to fuel its “novel” power system.

In an announcement today, DOE said it recently transported a “radioisotope thermoelectric generator (RTG) containing strontium-90” from the Oak Ridge Office of Environmental Management “to a commercial nuclear facility out of state, where Zeno will recycle the material to power its novel radioisotope power systems (RPS).”

“The technology in these power systems is capable of converting heat generated by the decay of radioisotopes into a durable, reliable source of electricity in remote and challenging environments,” DOE said.

The public-private partnership with Zeno, DOE said, “has reduced the amount of legacy radioactive material on the site” so the company can “recycle the material into a source of clean energy.”

OREM Manager Jay Mullis called the arrangements a “win-win” that removes “a significant source of radioactivity at a savings to taxpayers, while also supporting nuclear innovation.”

Zeno co-Founder and CEO Tyler Bernstein said in a company press release that the “innovative partnership will transform a waste product and taxpayer liability into a clean energy asset that will advance national security and scientific missions.”

“We’ve now demonstrated the core building block of our technology and secured our initial fuel supply chain -- positioning us as the clear leader to commercialize RPS technology by 2026,” he said.

The Air Force contract Zeno was awarded in May was to build a radioisotope-powered satellite by 2025. In October, Zeno also announced it has been awarded a $7.5 million defense contract to build and demonstrate an RPS 2025 that is “capable of providing resilient, distributed power on the seabed.”

The company is also developing RPS technology with NASA and other lunar industry companies.

Zeno, in its statement, said RPSs are “compact devices that convert heat from radioisotopes into a persistent and reliable supply of clean energy.”

Though strontium-90 has been used in RPSs before, Zeno says that past systems have been “heavy, constraining their use to limited terrestrial applications.”

“Zeno’s key innovation is a novel design that increases the specific power of Sr-90 heat sources, enabling broad use of its RPSs in space and terrestrially,” the company said.

By Nickolai Sukharev
January 25, 2024 at 4:43 PM

The Army will hold an industry day to explore a second interceptor capability as part of the Indirect Fire Protection Capability system, according to a public announcement.

Issued as a request for information, the Army wants to see what industry has to develop an interceptor that will use open system architecture that will “establish lethal kinetic effects” against rockets and cruise missiles.

“The new interceptor requires future capability growth with minimal levels of system redesign to address Objective level threat sets,” the announcement adds.

“The IFPC Inc 2 Program Office is currently projecting a 2nd Interceptor competitive award in FY25. The Program Office plans on taking selected vendor(s) through a technology demonstration in the FY26 – FY27 timeframe. The Government intends to award a development, qualification, and test effort following this demonstration.”

Designed to protect high value military sites, the Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) mobile ground-based system consists of an interceptor and launcher that are designed to defeat cruise missiles, drones, rockets and artillery.

The system will also use the Army’s Integrated Air and Missile Defense Battle Command system and integrate the AN/MPQ-64 Sentinel Radar as its sensor, according to the Congressional Research Service.

Last October, Brig. Gen. Frank Lozano, program executive officer for missiles and space, said that low-rate initial production for the system would be delayed.

According to budget documents, the IFPC Inc 2 system will cost $546 million from Fiscal Year 2021-24.

In addition to kinetic effects, the Army will also pursue high-powered lasers and microwaves capabilities, the budget documents read.

The Army will hold an industry day on Thursday, Feb. 8 and intends on awarding a contract in fiscal year 2025.

By Thomas Duffy
January 25, 2024 at 11:55 AM

This Thursday INSIDER Daily Digest starts off with some missile defense news, a look at what is causing the cost increases for the Air Force’s Sentinel missile program, financial news from Electric Boat, Army investments in ammunition plants, and more.

Big changes may be coming for the Missile Defense Agency:

New missile defense governance, potential 'integrator' role, to be decided this spring

The Defense Department this spring must re-write its seminal missile defense governance policy to replace a controversial memorandum advanced during the Trump administration that curtailed the Missile Defense Agency's autonomy by elevating approval authority for key activities to senior Pentagon officials.

An Air Force official spoke about the Sentinel program’s cost growth:

Aspects of Sentinel other than the missile drove Nunn-McCurdy breach, official says

It's not the actual missile that's causing the drastic cost increase in the Sentinel intercontinental ballistic missile program but the surrounding civil works components, a top Air Force official said today.

EB discussed its latest financial report this week:

Electric Boat reports improved submarine throughput amid continued supply chain challenges

General Dynamics Electric Boat is seeing throughput improvements within the Columbia- and Virginia-class submarine programs but still needs additional aid from the Navy to stabilize the submarine supply chain, company executives said today.

The Army told us where it is spending big money to improve its infrastructure:

Army spending $4.5B to modernize several ammunition plants

The Army will invest $4.5 billion to modernize its ammunition plants as part of a wide multibillion-dollar, 15-year effort to modernize its industrial base, according to the service.

An industry trade group sees real potential for the CMMC program outside of the defense sector:

AIA sees potential expansion of CMMC program beyond DOD following release of proposed rule

The Aerospace Industries Association is advocating for the Defense Department's Cybersecurity Maturity Model Certification program to be used by civilian agencies, as part of an effort to address "ambiguity" over sensitive information held by contractors and create synergies.

By Dan Schere
January 25, 2024 at 10:56 AM

The Army will host Project Convergence, its series of experiments and events focused on building readiness, beginning next month in California along with four other U.S. military services and militaries from six other nations.

The events will run Feb. 23 through March 20, with events taking place at Camp Pendleton and the Army’s National Training Center at Ft. Irwin, according to a Wednesday announcement. The Navy, Air Force, Marine Corps and Space Force are the other U.S. services that will participate. Additionally, militaries from the United Kingdom, Australia, Canada, New Zealand, France and Japan will be present.

A media day at Camp Pendleton will “showcase experimentation technologies from phase one,” and will feature discussion on joint experimentation, fires, command and control, contested logistics and multination integration, according to the announcement.

The Army last held Project Convergence in the fall of 2022, which included experimenting with a missile defense system detecting ground threats and passing information to a long-range strike system.

By John Liang
January 24, 2024 at 12:56 PM

This Wednesday INSIDER Daily Digest has news on a Pentagon inspector general's report on the Defense Department's convoluted financial management system, plus the latest on the Cybersecurity Maturity Model Certification program and more.

The Defense Department inspector general issued a new report this week that makes 31 recommendations to reform the Pentagon's labyrinthine financial management system:

IG finds DOD could save $728M by retiring outdated financial systems early

The Defense Department inspector general says the Pentagon is spending too much money on outdated financial systems that will never be compliant with a DOD-wide audit and could potentially save $728 million if it retires the systems early.

Document: DOD IG report on outdated financial management systems

Our colleagues at Inside Cybersecurity recently spoke with an Aerospace Industries Association member about the Pentagon's Cybersecurity Maturity Model Certification program:

AIA sees potential expansion of CMMC program beyond DOD following release of proposed rule

The Aerospace Industries Association is advocating for the Defense Department's Cybersecurity Maturity Model Certification program to be used by civilian agencies, as part of an effort to address "ambiguity" over sensitive information held by contractors and create synergies.

Frank Peterkin, the principal director for directed energy at the Pentagon, said this week that directed-energy weapons offer the Defense Department a unique opportunity to transform integrated air and missile defense and counter asymmetric threats and sensors:

Directed-energy supply chains need to be strengthened, per DOD official

A senior defense official today said the directed-energy supply chain must be bolstered if the United States is to compete with peer adversaries like China and Russia.

Defense Secretary Lloyd Austin, who is still recuperating from prostate cancer surgery and a two-week hospitalization, opened a meeting this week on Ukraine with remarks broadcast from his home saying Russian President Vladimir Putin wants to break the will of the Ukrainian people and its allies:

DOD hosts allies in support of Ukraine amid stalled funding

Senior U.S. defense officials met today with an international coalition of more than 50 countries supporting Ukraine, standing up new groups focused on drone warfare and armored vehicles, despite the fact Congress remains in a stalemate over a massive supplemental funding package the Pentagon says is vital to Ukraine's survival against Russia.

Melissa Dalton, the nominee to be Air Force under secretary, faced some withering questions from Republican lawmakers during a Senate hearing this week:

Nominee for Air Force's No. 2 civilian faces fierce GOP criticism over border

Senate Armed Services Committee Republicans today slammed President Biden's nominee for Air Force under secretary over the administration's delayed response in identifying the Chinese surveillance balloon last year and her office's alleged mishandling of stored Southern border wall materials.

Document: Senate hearing on Air Force, DOT&E, S&T nominations

By Dan Schere
January 24, 2024 at 12:14 PM

Textron CEO Scott Donnelly said today that he isn't currently worried about the impact of the continuing resolution on the company's defense contracts, unless it were to drag out to a full year.

Congress last week voted to pass another two-tiered stopgap funding measure that extends funding through March 8 in the case of the Defense Department.

Donnelly, during a company earnings call Wednesday, said he thinks major contracts such as the Future Long Range Assault Aircraft (FLRAA), the contract for the eventual Black Hawk replacement, won’t suffer in the near term due to the CR.

“I think the Army probably has . . . backup plans, they're trying to work in terms of how they would move money around. Obviously FLRAA is a very high priority, very important program to them as well. So, this thing would be a heck of a lot easier if Congress would just pass a budget, for sure. But right now, I think we're OK unless it really goes to a full year,” he said.

Bell, a subsidiary of Textron, was selected by the Army for the FLRAA contract in December 2022 over competitor Sikorsky. However, a protest from Sikorsky delayed work on the program until April 2023.

Donnelly told investors Wednesday that he expects growth in military revenues for Bell in 2024 as work progresses on FLRAA.

“As we ramped after the contract, it’s gone really well. So, I would expect a number closer to the $900 million range in 2024,” he said.

In addition to FLRAA, Donnelly touted other recent company wins in defense, such as being chosen as one of two finalists for the Army’s Future Tactical UAS prototyping effort, as one of four companies chosen by the Army to proceed in the service’s Robotic Combat Vehicle competition and the company’s participation in the Marine Corps’ Advanced Reconnaissance Vehicle competition.

Donnelly said 2023 was a significant year for the company when it came to downselects from various military services.

“We'll execute on those, and they're not big growth programs, so they don't really have a CR impact I’m too concerned about. And they're virtually all programs that will have their next significant contractual award downselect in 2025,” he said.

By John Liang
January 23, 2024 at 1:55 PM

This Tuesday INSIDER Daily Digest has news on Lockheed Martin's deliveries of F-35 Joint Strike Fighters, the Missile Defense Agency's Next Generation Interceptor program and more.

Lockheed Martin's chief executive discussed his company's quarterly earnings this morning:

F-35s with TR-3 may be delivered even later, Lockheed CEO says

Lockheed Martin may not deliver F-35 Joint Strike Fighters enabled with Technology Refresh 3 until the third quarter of this calendar year, CEO Jim Taiclet said today.

Some missile defense news:

New law extends mandated oversight reporting of NGI program through production phase

The Missile Defense Agency must extend a statutory accountability checklist for the Next Generation Interceptor program that was originally designed to end with the technology development phase after Congress lengthened the mandated reporting regime through production.

Initial reports on new integrated air and missile defense for INDOPACOM due soon

The Pentagon has a new missile defense assignment: craft a comprehensive strategy for developing, acquiring and operationally establishing an integrated air and missile defense architecture for select locations across U.S. Indo-Pacific Command, a 100-million-square-mile region that constitutes more than 50% of the earth's surface.

In case you missed it, here's our deep dive into shipbuilders awaiting news on how much money Congress is going to appropriate for amphibious vessels:

Amphibious warship industrial base is 'underutilized' as LPD procurement pause drags on

With little certainty in the Pentagon's amphibious warship procurement plans, the builders and suppliers that produce these ships are holding their breath as they wait for Congress to complete fiscal year 2024 spending legislation and the Navy to provide a clear shipbuilding forecast.

The Air Force could be on track to finalize the KC-26A full critical design review by the end of the first quarter of this calendar year, or March:

Boeing sends KC-46A's RVS 2.0 critical design review to FAA for airworthiness approval

Boeing has completed the final step for the KC-46A's Remote Vision System 2.0 critical design review, sending the application over to the Federal Aviation Administration, a Boeing spokesperson told Inside Defense.

By Shelley K. Mesch
January 23, 2024 at 9:47 AM

RTX Chief Operating Officer Christopher Calio will step up as the company's CEO in May.

Calio will succeed current CEO Gregory Hayes, who will maintain his role as executive chairman, at RTX’s annual shareholder meeting on May 2, RTX announced last month and reiterated today during its year-end earnings call.

“I’ve worked with Chris for many years, and I can’t think of a better person to take on this role,” Hayes said during the call. “Chris has a deep understanding of our industry, our customers’ needs and our operation, and most importantly, he’s an outstanding leader.”

RTX also announced in the call that it expects this quarter to close the $1.3 billion sale of the Raytheon Cybersecurity, Intelligence and Services business. RTX announced the sale -- without naming the buyer -- in its third quarter results last year.

RTX also plans to sell its Collins Aerospace actuation and flight control business to France-based Safran Group for $1.8 billion. Safran has said it expects to close the sale by the end of June.