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The INSIDER daily digest -- July 27, 2023
By John Liang
July 27, 2023 at 1:49 PM

This Thursday INSIDER Daily Digest has news on the Senate's fiscal year 24 defense spending bill, the U.S.-Australia-U.K. submarine deal and more.

We start off with coverage of the Senate's FY-24 defense spending bill:

Senate appropriators advance defense spending bill

The Senate Appropriations defense subcommittee this morning released its draft version of the fiscal year 2024 defense spending bill, intending to fund the Pentagon at $831.7 billion, or about $534 million above President Biden's request.

Document: Senate appropriators' FY-24 defense spending report

The U.S.-Australia-U.K. submarine deal has been in the news this week:

Senior GOP lawmakers push White House on new funding for AUKUS subs

A team of GOP lawmakers led by Sens. Roger Wicker (R-MS) and Susan Collins (R-ME) has sent President Biden a letter urging him to send Congress a new spending request to support the AUKUS submarine initiative planned for the United States, the United Kingdom and Australia.

House lawmakers look to authorize submarine transfers to Australia

House lawmakers today approved a legislative proposal intended to facilitate the implementation of the AUKUS security partnership by enabling the transfer of two Virginia-class submarines to Australia.

We also have coverage of efforts to counter small unmanned aerial systems:

Joint C-sUAS office wants to enhance capabilities on drone swarm attacks

The Joint Counter-small Unmanned Aircraft Systems office wants to beef up the joint force's capabilities in the area of drone swarm attacks by issuing a request for information to vendors this month for drone targets.

The Senate Armed Services Committee held a hearing this week on the nominations for the prospective leaders of U.S. Northern and Space commands:

NORTHCOM nominee: U.S. should consider means to defeat limited Russia, China ICBM attack

The Defense Department should consider expanding current national missile defense policy -- which is focused on threats from North Korea and, should Tehran obtain a long-range nuclear capability, Iran -- to also counter a "limited" attack on the United States by Russia or China, the general nominated to oversee homeland missile defense told lawmakers.

Document: Guillot, Whiting APQs on NORTHCOM, SPACECOM nominations

Last but by no means least, our colleagues at Inside Cybersecurity have the latest cyber defense news:

Cyber AB leader calls rulemaking submission to OIRA 'major milestone' in move toward official program launch

Matthew Travis, CEO of the accreditation body behind the Pentagon's Cybersecurity Maturity Model Certification program, praised the Defense Department's efforts to get the first CMMC rulemaking moved into the interagency process for review at a Tuesday "town hall" meeting.

The INSIDER daily digest -- July 26, 2023
By John Liang
July 26, 2023 at 3:08 PM

This Wednesday INSIDER Daily Digest has news from various defense contractors' quarterly earnings and more.

We start off with coverage of Boeing's, General Dynamics' and RTX's quarterly earnings calls:

Boeing looking at positive defense margins in 2025/2026

Boeing is "wrestling through" its fixed-price defense and space contracts and expects to begin turning an operating profit in its defense business in 2025, CEO David Calhoun said Wednesday.

General Dynamics adjusting to 'new normal' across supply chains

General Dynamics is adjusting to a "new normal" for its supply chains, according to company executives, who said despite persistent challenges, its shipbuilding business experienced continued growth with record revenue during the second quarter of 2023.

RTX discloses engine defect from a rare condition

Despite a strong second-quarter earnings record, RTX this morning disclosed its Pratt & Whitney business unit found a rare condition in the powdered metal used to manufacture certain engines that would require an accelerated fleet inspection.

The Army is striving to create a simulated Synthetic Training Environment capability in response to multidomain operations:

Army wants to expand capabilities with new virtual training system

The Army plans to begin its initial fielding of the Reconfigurable Virtual Collective Trainer (RVCT) in fiscal year 2024 at three bases and is also aiming to soon expand the requirements for the system to include both legacy and new air and ground systems, officials told reporters Monday.

More cyber defense news from our colleagues at Inside Cybersecurity:

CMMC program rulemaking enters formal interagency review process at OIRA

The Pentagon's Cybersecurity Maturity Model Certification program is entering a new stage with the submission of the rulemaking to implement the program now under review at the White House Office of Management and Budget's information and regulatory affairs office.

Army seeking Abrams gunnery training system, other equipment for Ukraine
By Dan Schere
July 26, 2023 at 2:31 PM

The Army has issued a sources-sought notice for the procurement of a tabletop Advanced Gunnery Training System platoon set used for training Ukrainian troops on the M1A1 Abrams tanks, as well as associated equipment, new equipment training and spare parts.

The Advanced Gunnery Training System is a simulator that allows soldiers to train on procedures, basic skills, crew coordination and crew drills, according to manufacturer Lockheed Martin. Soldiers can practice tasks such as target recognition, fire control and distribution and asset deployment.

There are multiple variants of the training system, including the tabletop trainers, which use a desktop computer and touchscreen display with a gunner or commander handle, according to Lockheed.

After the United States committed 31 Abrams tanks to Ukraine earlier this year, the Pentagon announced May 15 that they had arrived in Germany for U.S.-led training of Ukrainian forces. Those tanks are scheduled to arrive in Ukraine some time this fall, according to officials from the Defense Department.

The notice, posted Tuesday, is to determine the method of a procurement in the event a “requirement materializes.” It states there may be multiple awards made and “small business set-aside categories will be considered.”

Responses to the notice are due July 31.

Maxar 300 series' design approved for SDA's military satellite constellation
By Apurva Minchekar
July 26, 2023 at 2:06 PM

Space technology company Maxar Technologies announced it has completed the first critical design review of the Maxar 300 series for the Space Force's Tranche 1 Tracking Layer.

In collaboration with L3Harris Technologies, the Maxar 300 series is designed to carry a minimum of eight space vehicles per launch with low jitter demand and high power required for the missile defense mission, the company said.

“We designed the Maxar 300 series platform to be quickly scalable,” Chris Johnson, Maxar Space senior vice president and general manager, said in the announcement July 24.

Johnson noted the series' critical design review was completed within 10 months of the contract award and is scheduled to begin production of the series later this year, with initial deliveries in early 2024.

Maxar is responsible for building 16 platforms for the Space Development Agency’s T1TRK program, each about the width of a conventional oven. According to the announcement, unlike traditional missile tracking systems, these new dimensions will assist SDA to accomplish its goals to “reduce the size, weight, power and cost.”

The agency also plans to adapt and extend Maxar’s deep commercial communications satellite experience for new uses, the announcement reads.

The Defense Department in July 2022 said the T1TRK would build upon the Tranche 0 Tracking Layer capabilities, featuring enhanced targeted technologies, expanded coverage, increased integration, calibration processes and greater production efficiencies.

DOD, DOC sign MOA on strengthening semiconductor industrial base
By John Liang
July 26, 2023 at 10:55 AM

The Defense and Commerce departments have signed a memorandum of agreement to expand collaboration to strengthen the U.S. semiconductor defense industrial base.

"The agreement will increase information sharing between the departments to facilitate close coordination on the CHIPS for America's incentives program, ensuring that their respective investments position the U.S. to produce semiconductor chips essential to national security and defense programs," a joint statement issued today reads.

"This agreement is an important step forward in increasing the capacity and resiliency of our domestic semiconductor industrial base," Assistant Secretary of Defense for Industrial Base Policy Laura Taylor-Kale, who signed the MOA on behalf of DOD, said in the statement. "It is essential for DOD and DOC to consult one another to ensure we are making complementary investments that support a robust semiconductor industrial base. Both departments are working together to expand domestic semiconductor production capacity in a coordinated fashion."

By aligning priorities and decision-making, the MOA "will enable a more synchronized approach to promoting a robust and resilient semiconductor supply chain," according to DOD. "Specific areas of consultation identified in the MOA include sharing information on the semiconductor needs of the Defense Industrial Base, the investment priorities of DOD and each military service, the existing and planned investments to sustain mature and legacy chip capabilities for current defense programs, and funding to support emerging technologies that are critical to future U.S. national security programs."

Allvin nominated for Air Force chief of staff
By Shelley K. Mesch
July 26, 2023 at 10:51 AM

The Biden administration has nominated Gen. David Allvin to be the next Air Force chief of staff, according to a Tuesday announcement.

Allvin would succeed Gen. Charles Brown, who has been nominated for chairman of the Joint Chiefs of Staff.

Allvin has served as the Air Force vice chief of staff since 2020 and has served as director of strategy, concepts and assessments for the Air Force deputy chief of staff; director of strategy and policy at U.S. European Command, and director of strategy, plans and policy for the joint staff.

Military nominations have been held up by a blockade from Sen. Tommy Tuberville (R-AL) as a protest to Defense Department policies for leave and travel reimbursement for servicemembers seeking abortion services.

Biden taps Mahoney as Marine Corps' next assistant commandant
By Nick Wilson
July 26, 2023 at 10:20 AM

The Biden administration has nominated Lt. Gen. Christopher Mahoney to serve as the next assistant Marine Corps commandant, according to a Tuesday announcement.

If confirmed, Mahoney, who currently serves as the deputy commandant for programs and resources, would succeed Gen. Eric Smith as the Marine Corps’ No. 2 officer.

Mahoney is a graduate of the Naval Fighter Weapons School (TOPGUN) and has served as the deputy commander of Marine Forces Pacific, the director of strategy and plans at Headquarters Marine Corps, the deputy commander of United States Forces, Japan and the commanding general of 3rd Marine Aircraft Wing, according to his official biography.

In the Senate, Mahoney’s nomination faces a blockade by Sen. Tommy Tuberville (R-AL) who is holding up all Defense Department nominations and promotions over opposition to the Pentagon’s leave and travel reimbursement policies for servicemembers seeking abortion services.

Following the retirement of the Marine Corps’ previous commandant, Gen. David Berger, Smith is serving as "acting commandant" while his nomination awaits official Senate approval.

AI leaders call for rules, countermeasures against rogue systems
By Linda Hersey
July 25, 2023 at 8:40 PM

The U.S. needs to secure the emerging artificial intelligence supply chain and fund countermeasures to defend against potentially rogue AI systems, a panel of AI leaders told lawmakers Tuesday.

From manufacturing to computer modeling, AI systems need to be kept “out of the hands of bad actors,” Anthropic CEO Dario Amodei said in opening remarks to the Senate Judiciary subcommittee on privacy, technology and the law.

Amodei raised specific concerns about AI and misuse of biological weapons, noting that rapid advances in AI could enable “many more actors to carry out large-scale biological attacks. We believe this represents a grave threat to U.S. national security.”

Amodei said his company recently conducted a study with biosecurity experts on the risks posed by AI and biological weapons.

While information on biological weapons production is classified by the U.S. and other governments, “today's AI tools can fill in some of these steps, albeit unreliably,” Amodei said. “In other words, they are showing the first signs of danger.”

The two-hour congressional hearing touched on potential threats posed by AI technology and opportunities for oversight through federal regulation and global agreements.

Subcommittee Ranking Member Josh Hawley (R-MO) raised concern about Taiwan’s computer chip industry, security and the global economy if it came under attack by China. Taiwan produces more than 60% of semiconductors worldwide.

AI leaders said early work is underway to diversify the supply chain, with plans for developing manufacturing facilities in the U.S. and Germany.

Amodei was joined by hearing witnesses Stuart Russell, University of California computer science professor; and Yoshua Bengio, founder of Mila-Quebec AI Institute, another AI startup.

Bengio recommended Congress jumpstart the process of creating an AI framework for regulations.

“Advancements have led many top AI researchers, including myself, to revise our estimates of when human level intelligence could be achieved,” Bengio said. “Previously it was thought to be decades or even centuries away; we now believe it could be within a few years or decades.”

SSC awards 16 contractors for LEO SATCOM services
By Apurva Minchekar
July 25, 2023 at 3:42 PM

On July 18, the Space Force awarded 16 indefinite delivery, indefinite quantity contracts for proliferated low earth orbit satellite-based services, Space Systems Command announced yesterday.

Proliferating satellite communication services in LEO is part of an overall DOD strategy to leverage resilience by diversifying orbits, the command noted.

“The face value of this action is $32,000 (a $2000 minimum guarantee to each contractor) funded by no year defense working capital funds, with a total cumulative face value of $900 million,” the announcement reads.

Unlike having a traditional one contract per mission, awarding multiple partners/multiple award contracts model is the “transformational strategy,” according to Clare Hopper, chief of SSC’s commercial satellite communications office.

While this strategy is a first for government SATCOM procurement, it guarantees to deliver capabilities to the warfighter faster at low cost and also enables the government and industry to collaborate easily and take advantage of rapid innovation in the commercial SATCOM sector.

“We continue to see game-changing advances in commercial SATCOM,” Col. Richard Kniseley, senior material leader of SSC’s commercial space office, said.

The contracts awarded by the Defense Information Systems Agency will cover the scope of service capability development based on satellites in LEO, not limited to high-speed broadband, synthetic aperture radar imaging, space domain awareness and alternative positioning, navigation and timing, the command said.

The contracts were awarded by DISA through the Commercial Satellite Communications Office, a central marketplace for SATCOM services operated by SSC, a field command of the U.S. Space Force, according to the announcement.

The command said 25 proposals were received from this full and open competition notified on sam.gov, out of which 16 were selected.

Future Technologies names new CEO
By Linda Hersey
July 25, 2023 at 2:38 PM

Robert Miller has been named chief executive officer of Future Technologies after serving at EverWatch as president, defense missions and support.

Miller succeeds FTI founder Ram Gupta, who becomes executive chairman of the board, the company said in an announcement Tuesday. Gupta served as FTI president for more than 30 years.

FTI provides engineering, computer operations, program management and IT services and solutions for federal agencies.

Its overall mission is to supply critical technology and support to intelligence and defense industry customers globally, in both the private and public sector.

Gupta noted Miller’s knowledge of federal technology and contracting, as well as his background in “facilitating growth,” in a formal announcement about the leadership change.

Miller previously served as president at EverWatch from 2018-2023. The company is a subsidiary of Booz Allen Hamilton.

He also was president of IEA from 2015-2023. The company supplies strategic, technical and analytic support to federal customers.

Before that, he was a senior manager at PRO-telligent, an information technology services company.

The INSIDER daily digest -- July 25, 2023
By John Liang
July 25, 2023 at 2:15 PM

This Tuesday INSIDER Daily Digest has news on an upcoming Navy-Marine Corps exercise, upgrades to the Missile Defense Agency's Command and Control, Battle Management and Communications (C2BMC) system and more.

We start off with coverage of a major upcoming Navy-Marine Corps exercise:

Navy, Marine Corps practice global coordination with LSE 2023

The Navy and Marine Corps are gearing up for a large-scale exercise that will test their ability to synchronize global operations, from fleetwide maneuvers down to the individual actions of sailors and Marines, through a mix of live and virtual training.

The Missile Defense Agency is rolling out a new upgrade of the Command and Control, Battle Management and Communications (C2BMC) system:

Select missile defense radars beginning additional new mission: tracking space objects

Next month, the U.S. military will begin bringing online enhanced, dynamic space capabilities that allow select sea- and land-based radars originally designed for ballistic missile defense missions to simultaneously conduct the new task of tracking orbiting objects to help fill gaps in the Space Force's Space Surveillance Network.

More cyber defense coverage from our colleagues at Inside Cybersecurity:

DOD, agencies raise concerns over tailored controls in proposed NIST CUI publication update

The program office behind the Pentagon's cyber certification program and civilian agencies are identifying issues over the use of "organization-defined parameters" in the latest draft update to NIST Special Publication 800-171, a foundational document on the handling of controlled unclassified information.

Lawmakers attempt to add FISMA reform, open-source software measures into defense policy bill

Senate Homeland Security Committee Chairman Gary Peters (D-MI) and Sen. James Lankford (R-OK) have offered a package of cyber bills for inclusion in the fiscal year 2024 defense authorization bill, including legislation to reform the Federal Information Security Modernization Act and address other cyber priorities, as work continues this week to pass the Senate's version of the major defense policy bill.

PSC seeks closer alignment of NIST CUI publication with other cyber procurement requirements

The Professional Services Council wants the National Institute of Standards and Technology to consider how to align NIST's foundational guidance on handling controlled unclassified information with other cyber procurement requirements, including the Pentagon's cyber certification program.

Biden taps Chollet for DOD policy chief
By Tony Bertuca
July 25, 2023 at 1:32 PM

President Biden intends to nominate State Department counselor Derek Chollet to be the Pentagon's next under secretary of defense for policy, according to a White House announcement.

Chollet, who has served as State Department counselor since January 2021, has previously held positions at State, the White House and Defense Department, including as assistant secretary of defense for international security affairs, special assistant to the president and senior director for strategic planning on the National Security Council, as well as other roles.

Outside of government, Chollet has also held a number of positions at think tanks and research institutions including the Center for a New American Security, the Center for Strategic and International Studies and the Brookings Institution.

If confirmed, Chollet would succeed outgoing USD-P Colin Kahl.

However, Chollet, along with hundreds of other DOD nominees, is poised to run into Sen. Tommy Tuberville’s (R-AL) monthslong nomination blockade over his opposition to the Pentagon’s travel and leave policies for servicemembers seeking abortion services.

DOD sends $400M weapons package to Ukraine
By Tony Bertuca
July 25, 2023 at 1:15 PM

The Defense Department today announced a $400 million rapid transfer of U.S. weapons to Ukraine.

The package, funded via presidential “drawdown” authority, includes:

  • Additional munitions for Patriot air defense systems and National Advanced Surface-to-Air Missile Systems (NASAMS);
  • Stinger anti-aircraft systems;
  • Additional ammunition for High Mobility Artillery Rocket Systems (HIMARS);
  • 155mm and 105mm artillery rounds;
  • 120mm and 60mm mortar rounds;
  • 32 Stryker Armored Personnel Carriers;
  • Tube-Launched, Optically Tracked, Wire-Guided (TOW) missiles;
  • Javelin and other anti-armor systems and rockets;
  • Hornet Unmanned Aerial Systems;
  • Hydra-70 aircraft rockets;
  • Tactical air navigation systems;
  • Demolitions munitions for obstacle clearing;
  • Over 28 million rounds of small arms ammunition and grenades;
  • Night vision devices and thermal imagery systems; and
  • Spare parts, training munitions, and other field equipment.

The action is the 43rd drawdown of U.S. equipment for Ukraine since August 2021.

The weapons shipment comes as Ukraine continues to deploy forces in a counteroffensive against Russia.

Army seeking information to inform MEDEVAC risk reduction for FLRAA
By Dan Schere
July 25, 2023 at 10:46 AM

The Army is asking for technical information to inform the medical evacuation risk-reduction capabilities for the Future Long Range Assault Aircraft, according to a request for information posted Tuesday.

Following a lengthy downselect process, the Army awarded Textron’s Bell the $1.3 billion FLRAA contract last December. The service conducted more than 20 soldier touchpoints with infantry and MEDEVAC soldiers and pilots to help inform the requirements, the Army said at the time.

FLRAA will gradually replace the UH-60 Black Hawk starting in 2030. However, the Army’s top officials have said that the future aircraft is not a one-for-one replacement of the UH-60, and they expect the legacy fleet to continue flying for another 40 to 50 years.

The RFI posted Tuesday states the Program Executive Office for Aviation is seeking information to “inform FLRAA MEDEVAC risk-reduction activities for FLRAA MEDEVAC.”

Among the types of capabilities the Army is interested in, according to the notice, are aircraft hoist systems that can lift 800 pounds, a MEDEVAC Enhanced Modular Patient Handling System that can fit in the cabin of the aircraft and a MEDEVAC mission sensor that can locate and remove patients in many types of conditions.

The RFI also states that there will be a subsequent industry day and follow-on government and industry sessions. The information collected will be used for information and planning, but is not a solicitation, the notice states.

FLRAA is scheduled to enter milestone B, the transition to the engineering and manufacturing development stage, in the third quarter of fiscal year 2024, service officials said in April at the Army Aviation Association of America conference in Nashville.

Space Force to launch at least 80 missions under NSSL Phase III
By Apurva Minchekar
July 24, 2023 at 2:16 PM

The Space Force plans to launch at least 80 missions --30 missions for Lane 1 and 56 missions for Lane 2 -- under space launch acquisitions Phase III from fiscal year 2025 to FY-29, according to a recent industry day briefing.

On July 20-21, the Defense Department hosted an industry day to provide updates on National Security Space Launch’s first draft request for proposals for Lane 1 and Lane 2.

U.S. Space Systems Command stated that the Lane 1 missions would be more risk-tolerant while Lane 2 missions will require full mission assurance, including five Global Positioning System missions and additional National Reconnaissance Office missions.

“[For Lane 2] mission estimate increased from 39 to approx. 58 missions over the FY25-FY29,” the command noted in the briefing.

Further, to increase resiliency and assured access to space, the service has also added a third-launch provider to Lane 2 in the event of a debacle with the Lane 2 provider. The third launch provider will also be awarded seven missions, a move to widen the scope of competition and control cost.

According to the briefing, each launch service provider of Lane 2 will be allotted a cap of $100 million annually for launch service support.

Expanding on the Lane 2 updates to the second draft request for proposals, the briefing noted that from FY-27 DOD will evaluate the system readiness to ensure the NSSL requirements are met.

“Government may find advantageous the use of demonstrated flight data of the proposed system, flight heritage for major subsystems, operationally ready launch facilities and associated infrastructure and other evidence of readiness to meet NSSL requirement,” the briefing states.

Additionally, according to the second draft RFP, Lane 1 would consist of a multiple-award, indefinite-delivery, indefinite-quantity contract that will have a five-year basic ordering period and a five-year option ordering period.

Adding to it, the command noted that Lane 1 provider can propose multiple launches to meet the 15,000 lbs to low earth orbit minimum requirement and a plan to achieve 1 successful flight within one year of the IDIQ proposal due date.

Inside Defense recently reported that Senate lawmakers have approved an amendment to establish Lane 2A, an additional lane two years into Phase III to increase the competition within the field.

Explaining the advantages of introducing Lane 2A in the briefing, the service said it will provide annual on-ramp opportunities, ensure capability for hard missions and provide additional resiliency through new launch systems.

Space Systems Command is expecting to award a contract for Lane 1 and 2 in the fourth quarter of FY-23.