The Insider

By Linda Hersey
June 7, 2023 at 2:54 PM

Raytheon Technologies has been awarded a $2 billion fixed-priced contract to buy engine parts for the F-35 Lightning II Joint Strike for the Air Force, Marine Corps and Navy, as well as foreign military service participants and other non-U.S. defense customers.

Pratt & Whitney Military Engines, a division of the aerospace company based in East Hartford, CT, is the contract recipient.

Announced June 5, the contract modifies a previous award to acquire materials, parts and components for Lot 17 of the F135 propulsion system. It also allows for the procurement of global spare parts, including engines, power modules and other hardware.

Work will be performed at more than a dozen facilities that include plants in East Hartford (at 17%), Indianapolis, IN (10%); Middletown, CT (8%); and Kent, WA (7%).

Naval Air Systems Command is managing the contract, with the work expected to be completed in December 2025. Funds for the acquisition were approved in fiscal years 2022-23 as follows:

  • Navy: $645.5 million in FY-23, and $1.4 million, FY-22;
  • Air Force: $527.6 million, FY-23, and $30.3 million, FY-22;
  • Non-U.S. defense customers: $417.5 million, obligated with the award;
  • Foreign military sales participants: $400.5 million, obligated with the award.

FMS participants include the United Kingdom, Australia, Italy, the Netherlands and Norway.

According to a May 31 Government Accountability Office report, program participants acquire spare parts from a global pool that DOD owns and the prime contractors manage. Spare parts are in more than 50 facilities in the U.S. and across the world.

The report cited the F-35 Joint Program Office for a lack of oversight that has resulted in lost and/or missing parts. The report stated that DOD “doesn’t account for or oversee the parts,” and that Defense officials “have not agreed on whether the spare parts should be “categorized” as government-furnished property.

DOD reviewed just 2% of 1 million missing parts identified since 2018, according to the report, which estimated the value of the lost parts at $85 million.

The report recommended that steps should be taken to categorize and track the global spare parts pool.

By John Liang
June 7, 2023 at 2:23 PM

This Wednesday INSIDER Daily Digest has news on a pair of Defense Business Board studies currently underway, Lockheed Martin's choice for the engine for its next-generation tanker and more.

The Defense Business Board has been tasked to conduct a pair of studies:

Hicks directs Defense Business Board to review space acquisition

Deputy Defense Secretary Kathleen Hicks has directed the Defense Business Board to review the Pentagon's process for procuring space systems to potentially develop a "clean sheet approach to space acquisition."

Document: DBB terms of reference memo for space acquisition review


Advisory board to review DOD business operations culture

Deputy Defense Secretary Kathleen Hicks is directing the Defense Business Board to find ways to "improve the business operations culture" at the Pentagon.

Document: DBB terms of reference memo for DOD business operations culture study

GE will be the engine provider for Lockheed Martin's next-generation tanker submission:

Lockheed selects GE to provide engine on LMXT tanker aircraft

Lockheed Martin today announced it has selected General Electric Aerospace to provide the engine for the company's LMXT tanker, which it is offering for the Air Force's KC-135 recapitalization program.

Textron is among the companies bidding for the RCV-L, which is being developed as part of the Army’s Next Generation of Combat Vehicle Family of Vehicles:

Textron executive expects to hear from Army in September about RCV-L downselect

An executive with Textron Systems says the company anticipates the Army will announce its downselect in September for the Robotic Combat Vehicle-Light prototype competition.

As the Marine Corps enters the fourth year of its Force Design 2030 initiative, it will look to accelerate procurement of both vehicle-mounted OPF capabilities and lighter systems that can be carried by infantry Marines:

Marine Corps looks to accelerate Organic Precision Fires fielding, releases RFI

The Marine Corps' development of organic precision fires is moving too slowly, according to the service's annual Force Design update, which outlines an effort to speed up the acquisition and training processes for OPF capabilities.

By John Liang
June 7, 2023 at 1:09 PM

General Dynamics announced today that retired Army Lt. Gen. Charles Hooper has joined the company's board of directors.

Hooper retired from the Army in 2020 after 41 years of service. While in the Army, he was head of the Defense Security Cooperation Agency. He has also served as a U.S. defense attaché to Egypt and China as well as director of strategy, plans and programs at U.S. Africa Command.

Additionally, Hooper was deputy director of strategic planning and policy at U.S. Indo-Pacific Command and senior director for China, Taiwan and Mongolia policy in the Office of the Secretary of Defense.

At the moment, Hooper is a senior counselor for the Cohen Group and is affiliated with the National Bureau of Asian Research, the Atlantic Council and the Council on Foreign Relations. He is also a senior fellow at the Belfer Center for Science and International Affairs at Harvard University's John F. Kennedy School of Government and serves on the board of directors for UL Solutions as well as the board of trustees for the National World War II Museum in New Orleans.

By John Liang
June 7, 2023 at 10:55 AM

The Defense Policy Board will meet next week in closed session to discuss China's activities in the Taiwan Strait and other issues.

The June 13-14 meetings will cover "classified briefings and hold classified discussions on the long-term regional and global strategic implications of potential coercion by the People's Republic of China (PRC) across the Taiwan Strait, including implications for U.S. allies and partners in the Indo-Pacific and around the world," according to a notice published in this morning's Federal Register.

Other topics the board will cover include:

"(1) conduct classified deliberations as a Board regarding the Information Operations terms of reference discussed at the December 13-14, 2022, and the March 7-8, 2023, meetings;

"(2) receive classified briefings on reactions by the Chinese Communist Party (CCP) and China's People's Liberation Army (PLA) from the National Intelligence Officer for East Asia, National Intelligence Council, and Dr. Dale Rielage, Senior Director for Strategic Competition, OSD Red Team, Office of the Under Secretary of Defense for Intelligence & Security;

"(3) deliberate as a Board on classified CCP and PLA scenarios;

"(4) receive a classified briefing regarding reactions by Central & South American partners to these scenarios from GEN Laura Richardson (U.S. Army), Commander, U.S. Southern Command;

"(5) receive a classified briefing regarding reactions by South Korea, Japan, and Australia from the National Intelligence Officer for Near East, National Intelligence Council, and Honorable Ely Ratner, Assistant Secretary of Defense for Indo-Pacific Security Affairs;

"(6) receive a classified briefing regarding reactions by India, Vietnam, the Philippines, and Indonesia, from the National Intelligence Officer for South Asia, National Intelligence Council, and Hon. Ely Ratner, Assistant Secretary of Defense for Indo-Pacific Security Affairs;

"(7) receive a classified briefing regarding reactions by NATO Allies from AMB Julie Smith, U.S. Ambassador to NATO, and Ms. Rachel Ellehuss, U.S. NATO Defense Advisor;

"(8) conduct classified deliberations as a Board regarding the Taiwan topic terms of reference;

"(9) receive a classified briefing regarding reactions by African Partners from Gen Michael Langley (USMC), Commander, U.S. Africa Command;

"(10) receive a classified briefing regarding reactions by Russia and Iran from the National Intelligence Officer for Russia & Eurasia, National Intelligence Council;

"(11) receive a classified briefing regarding reactions by North Korea from the National Intelligence Officer for North Korea, National Intelligence Council;

"(12) discuss these briefings in a classified session with the Deputy Secretary of Defense and the Under Secretary of Defense; and

"(13) finally conduct a final classified deliberation as a Board regarding the Taiwan topic terms of reference."

By John Liang
June 7, 2023 at 10:30 AM

C3 Integrated Solutions today announced the appointment of Robert Metzger to the company's board of directors.

As a board member, Metzger "will help advise C3 on how to further strengthen its Cybersecurity Maturity Model Certification (CMMC) service offerings and expand its reach within the industry," according to a company statement.

Metzger contributed to the 2017 Defense Science Board Cyber Supply Chain Report and co-authorship of the MITRE Corp.'s 2018 "Deliver Uncompromised" Report which is widely recognized as having helped shaped federal cyber initiatives such as DOD's CMMC program.

He currently heads the Washington, DC office of Rogers Joseph O'Donnell, PC, a boutique law firm specializing in government contracts and chairs the firm's Cybersecurity and Privacy Practice Group. Before that, Metzger was a partner at Gibson Dunn & Crutcher, LLP, an equity partner at Kirkland & Ellis, and a partner of Latham & Watkins.

By John Liang
June 6, 2023 at 2:09 PM

This Tuesday INSIDER Daily Digest has news on a nascent Marine Corps counter-UAS program, plus that service's efforts to establish new reconnaissance battalions and more.

The Marine Corps has released a pre-solicitation containing a draft request for proposals for a counter-UAS engagement system (CES) described as "an advanced, highly autonomous effector" to take down UAS threats at "significant ranges from the launch location":

Marine Corps begins search for counter-UAS component of future air defense system

Continuing efforts to field ground-based air defense capabilities, the Marine Corps is looking to industry to produce a counter unmanned aircraft system component to support its prototype Marine Air Defense Integrated System (MADIS) Increment One.

The Marine Corps' annual update to its Force Design 2030 initiative is out:

Marine Corps continues development of new recon units, MLR capabilities with Force Design update

As the Marine Corps begins the fourth year of its Force Design modernization effort, the service is continuing its push to improve the mobility and lethality of its stand-in forces by establishing new reconnaissance battalions, solidifying operating concepts for its Marine Littoral Regiments and continuing to experiment with new technologies.

Document: Marine Corps' force design 2030 annual update

L3Harris Technologies CEO Chris Kubasik recently spoke about fixed-price contracts at the Bernstein Strategic Decisions Conference held in New York:

L3Harris CEO: Industry turning away from fixed-price development contracts

L3Harris Technologies, and likely other defense contractors, won't continue bidding for fixed-price contracts, CEO Chris Kubasik said Thursday.

Raytheon Technologies has nabbed a Missile Defense Agency sole-source, indefinite-delivery/indefinite-quantity Ground-based Midcourse Defense system sustainment contract:

MDA awards penultimate contract in project to break up legacy GMD sustainment

The Defense Department has awarded Raytheon Technologies a new deal as part of the project to break up the former Ground-based Midcourse Defense system continuing sustainment and development contract -- executing a potential $621 million, five-year package to keep modern and operational exoatmospheric kill vehicles in the deployed homeland defense interceptor fleet.

A recent report from the Defense Department inspector general's office determined "the extent to which the DOD developed guidance, conducted training, and oversaw the implementation of the DOD Controlled Unclassified Information (CUI) Program":

DOD watchdog finds oversight lacking on 'controlled unclassified' info restrictions

The Defense Department inspector general has found the Pentagon does not "effectively oversee" officials who mark government documents as "controlled unclassified information," potentially restricting transparency without an appropriate rationale.

Document: DOD IG report on CUI program implementation

By Linda Hersey
June 6, 2023 at 12:18 PM

An evaluation of contested mobility requirements and personnel training in support of the surge sealift mission in the Indo-Pacific will get underway this month, the Defense Department inspector general announced.

The goal is to examine sealift skills and competencies and the availability of training for personnel operating in a “contested mobility environment.”

“We may revise the objective as the evaluation proceeds, and we will also consider suggestions from management for additional or revised objectives,” the IG’s office said in a Monday memo.

Bryan Clark, acting assistant inspector general for evaluations programs, combatant commands and overseas contingency operations, announced the evaluation to leadership of U.S. Indo-Pacific Command, U.S. Transportation Command, Military Sealift Command, the Navy’s Joint Staff Auditor General and the Coast Guard.

The review will take place at the following locations: Navy, Joint Staff, INDOPACOM, TRANSCOM, MSC, Coast Guard and the Transportation Department’s Maritime Administration. Additional locations may be identified during the evaluation, according to the IG memo.

By Linda Hersey
June 5, 2023 at 5:09 PM

The U.S. has formally ended a data-sharing practice under the New START Treaty to provide Russia with telemetric information on test launches of intercontinental ballistic missiles (ICBMs) and submarine-launched ballistic missiles (SLBMs), in response to Moscow's "unilateral suspension" of similar terms of the accord, the State Department disclosed.

“The Russian Federation did not fulfill its obligation to provide updated data in March and is not implementing other key provisions of the treaty,” the State Department said in a June 1 formal statement.

At issue is the New START nuclear arms reduction treaty between the U.S. and Russia, in effect since 2011. Under the treaty’s terms, both nations provide scheduled updates on missile and launcher locations.

The United States and Russia “are obligated to exchange data on treaty-accountable items twice a year,” the State Department said.

While Russia has not formally withdrawn from the treaty, the Russian foreign ministry announced that nuclear facilities subject to inspections under the treaty will be “temporarily” exempt.

“Regrettably, the Russian Federation announced a unilateral and unjustified purported suspension of the treaty” on Feb. 28, the State Department said, describing the actions as “ongoing violations” that are “legally invalid.”

“Subsequently, the Russian Federation did not fulfill its obligation to provide updated data in March and is not implementing other key provisions of the treaty,” the State Department said.

Russia also is not engaging with the Bilateral Consultative Commission to resolve issues related to the treaty, according to the U.S.

“Russia has refused to meet in the BCC to reach such an agreement, and the United States will not provide telemetric information unilaterally,” the State Department said.

“The treaty does not require the United States to take such unilateral action in any event, since it calls for an exchange of telemetric information on an agreed number of launches.”

While the U.S. has stopped providing the status and location of nuclear missiles and test launches, it will continue to provide notification of test launches of ICBMs and SLBMs.

The U.S. also ended Russian inspection activities in the U.S. with the visas for inspectors and aircrews revoked, according to the State Department.

The U.S. continues to provide Russia with notifications of ICBM and SLBM launches and exercises in accordance with the 1988 Ballistic Missile Launch Notifications Agreement and the 1989 Agreement on Reciprocal Notification of Major Strategic Exercises, the State Department said.

Russia has not notified the U.S. of plans to send a Russian inspection team to the U.S. since February 2020, the department added.

“U.S. countermeasures are fully consistent with international law. They are proportionate, reversible, and meet all other legal requirements. International law permits such measures to induce a state to return to compliance with its international obligations,” according to the statement.

By Tony Bertuca
June 5, 2023 at 5:05 PM

House Armed Services Committee lawmakers intend to begin debating their version of the fiscal year 2024 defense authorization bill with subcommittee meetings starting June 13, followed by a marathon full-committee session June 21, the same day as their Senate counterparts.

The committee was initially scheduled to consider the bill in May but had to postpone the process because of the debt limit and spending debate.

The committee released the following schedule:

Tuesday, June 13:

Subcommittee on Strategic Forces 10:00am ET

(Rayburn – 2118 – Open)

Subcommittee on Cyber, Information Technologies, and Innovation at 11:00am ET

(Rayburn – 2212 – Open)

Subcommittee on Seapower and Projection Forces at 12:00pm ET

(Rayburn – 2118 – Open)

Subcommittee on Military Personnel 1:00pm ET

(Rayburn – 2212 – Open)

Subcommittee on Tactical Air and Land Forces 2:30pm ET

(Rayburn – 2118 – Open)

Subcommittee on Intelligence and Special Operations 3:30pm ET

(Rayburn – 2212 – Open)

Wednesday, June 14

Subcommittee on Readiness 10:00 am ET

(Rayburn – 2118 – Open)

Wednesday, June 21

Full Committee Markup 10:00am ET

(Rayburn – 2118 – Open)

The Senate Armed Services Committee, meanwhile, is slated to begin considering its version of the defense authorization bill on June 20. While Senate authorizers mark their version of the bill in closed sessions, House lawmakers hold a day-long debate that can stretch into the wee hours.

A debt limit and spending agreement passed last week caps the total FY-24 defense budget at $886 billion, honoring President Biden’s request, despite criticism from senior Republicans that it is not enough.

Senate Republicans, however, are working to build an “emergency defense supplemental” that would include defense spending that is not subject to the cap.

By Tony Bertuca
June 5, 2023 at 4:34 PM

The Senate Armed Services Committee intends to debate its version of the fiscal year 2024 defense authorization bill this month, with subcommittee meetings starting June 20.

The committee released the following schedule:

Tuesday, June 20:

4:30 PM – Subcommittee on Cybersecurity – (CLOSED)

5:00 PM – Subcommittee on Airland – (CLOSED)

5:30 PM – Subcommittee on Strategic Forces – (CLOSED)

Wednesday, June 21:

9:30 AM – Subcommittee on Seapower (CLOSED)

10:00 AM – Subcommittee on Readiness and Management Support – (CLOSED)

10:30 AM – Subcommittee on Personnel – (OPEN)

11:00 AM – Subcommittee on Emerging Threats and Capabilities – TBA

The full committee, meanwhile, will meet in closed session to consider the bill starting June 21 and will meet again Thursday and Friday if necessary.

Committee Chairman Jack Reed (D-RI) said the importance of the massive must-pass military policy bill has never been more urgent.

“Each year, the National Defense Authorization Act provides our forces with the resources, training, equipment, and capabilities they need to keep Americans safe,” he said.

Sen. Roger Wicker (R-MS), the committee’s ranking member, said he looks forward to working alongside Reed to craft the bill.

“As we continue our work on the National Defense Authorization Act, it is vital that we retain a laser focus on the growing threats to the United States that have created the most dangerous security environment since World War II,” he said.

Though the bill is primarily a policy measure and not spending legislation, it does authorize the annual national defense topline. Congress recently passed debt and spending legislation that caps the FY-24 total defense budget at $886 billion -- the amount President Biden has requested.

Senate Republicans, however, are working to build an “emergency defense supplemental” that would include defense spending that is not subject to the cap.

By John Liang
June 5, 2023 at 2:25 PM

This Monday INSIDER Daily Digest has the latest on the Marine Corps' Force Design 2030 initiative, defense contractors taking financial hits on fixed-price contracts and more.

The Marine Corps this morning released an annual update to its Force Design 2030 initiative:

Marine Corps continues development of new recon units, MLR capabilities with Force Design update

As the Marine Corps begins the fourth year of its Force Design modernization effort, the service is continuing its push to improve the mobility and lethality of its stand-in forces by establishing new reconnaissance battalions, solidifying operating concepts for its Marine Littoral Regiments and continuing to experiment with new technologies.

Document: Marine Corps' force design 2030 annual update

L3Harris Technologies CEO Chris Kubasik recently spoke at the Bernstein Strategic Decisions Conference held in New York:

L3Harris CEO: Industry turning away from fixed-price development contracts

L3Harris Technologies, and likely other defense contractors, won't continue bidding for fixed-price contracts, CEO Chris Kubasik said Thursday.

The Missile Defense Agency has awarded a sole-source, indefinite-delivery/indefinite-quantity contract to Raytheon Technologies -- the second of three planned, sole-source Ground-based Midcourse Defense System sustainment contracts:

MDA awards penultimate contract in project to break up legacy GMD sustainment

The Defense Department has awarded Raytheon Technologies a new deal as part of the project to break up the former Ground-based Midcourse Defense system continuing sustainment and development contract -- executing a potential $621 million, five-year package to keep modern and operational exoatmospheric kill vehicles in the deployed homeland defense interceptor fleet.

A recent Pentagon inspector general's report determines "the extent to which the DOD developed guidance, conducted training, and oversaw the implementation of the DOD Controlled Unclassified Information (CUI) Program":

DOD watchdog finds oversight lacking on 'controlled unclassified' info restrictions

The Defense Department inspector general has found the Pentagon does not "effectively oversee" officials who mark government documents as "controlled unclassified information," potentially restricting transparency without an appropriate rationale.

Document: DOD IG report on CUI program implementation

The compromise federal debt ceiling bill, passed by the House and Senate and subsequently signed by the president, would fund total defense at $886 billion, with a 1% increase in FY-25:

GOP senators want 'emergency defense supplemental' to follow latest spending deal

Several GOP senators, including Sen. Susan Collins (ME), the ranking member on the Senate Appropriations Committee, said today they want a commitment from the White House and Senate Democrats to support an “emergency defense supplemental” following the passage of a deal that would raise the federal debt ceiling and lock in defense spending at levels they deem inadequate.

By Nick Wilson
June 5, 2023 at 12:41 PM

Capt. Kevin Smith has taken the helm as the head of the program executive office of unmanned and small combatants, replacing Rear Adm. Casey Moton during a June 1 ceremony, according to a Monday Navy announcement.

Smith, who previously served as the program manager for the Constellation-class frigate program, will now oversee the acquisition, maintenance and modernization of a variety platforms, from frigates and Littoral Combat Ships (LCS) to the Navy’s evolving portfolio of unmanned systems.

In February, Smith was nominated to the rank of Rear Admiral. His promotion awaits Senate approval as Sen. Tommy Tuberville (R-AL) maintains a blanket hold on military nominations and promotions over opposition to the Defense Department’s leave and travel policies for servicemembers seeking abortion services.

During Moton’s four-year tenure, PEO USC lead rapid experimentation and development efforts for unmanned capabilities including the Large Unmanned Surface Vessel and the Extra-Large Unmanned Undersea Vehicle. The office also began construction of the first frigate (FFG-62) and recently declared initial operational capability for the LCS mine countermeasures mission package.

By John Liang
June 5, 2023 at 9:59 AM

Leidos announced it has hired Amy Davis to be the company's senior vice president and chief security officer.

Davis will be responsible for leading, managing and directing the activities of Leidos' corporate security organization, according to a company statement. She will also oversee compliance with U.S. and foreign government national security standards.

Davis, who spent two decades at the National Security Agency, most recently served as deputy chief for NSA's security and counterintelligence office. Her career "included roles leading security operations focused on insider risk, emerging threats, physical security and crisis management," Leidos said.

By Tony Bertuca
June 5, 2023 at 5:00 AM

Senior Pentagon officials are slated to speak at Washington think tank events this week.

Tuesday

The Center for a New American Security hosts a conference on "American power and purpose." The event runs through Thursday.

The Brookings Institution hosts a discussion with the chief of U.S. Transportation Command.

Wednesday

Air Force Chief of Staff Gen. Mark Brown speaks at the Air Force Association's Mitchell Institute.

The Brookings Institution hosts a discussion featuring Chief of Naval Operations Adm. Michael Gilday.

By John Liang
June 2, 2023 at 2:08 PM

This Friday INSIDER Daily Digest has news on fixed-price defense contracts, the Ground-based Midcourse Defense system, the Pentagon's management of controlled unclassified information and more.

The days of defense companies bidding on fixed-price contracts seem to be numbered:

L3Harris CEO: Industry turning away from fixed-price development contracts

L3Harris Technologies, and likely other defense contractors, won't continue bidding for fixed-price contracts, CEO Chris Kubasik said Thursday.

The Missile Defense Agency this week announced a sole-source, indefinite-delivery/indefinite-quantity contract award to Raytheon Missile Systems, Tucson, AZ -- the second of three planned sole-source GMD sustainment contracts:

MDA awards penultimate contract in project to break up legacy GMD sustainment

The Defense Department has awarded Raytheon Technologies a new deal as part of the project to break up the former Ground-based Midcourse Defense system continuing sustainment and development contract -- executing a potential $621 million, five-year package to keep modern and operational exoatmospheric kill vehicles in the deployed homeland defense interceptor fleet.

A new Defense Department inspector general's report determines "the extent to which the DOD developed guidance, conducted training, and oversaw the implementation of the DOD Controlled Unclassified Information (CUI) Program":

DOD watchdog finds oversight lacking on 'controlled unclassified' info restrictions

The Defense Department inspector general has found the Pentagon does not "effectively oversee" officials who mark government documents as "controlled unclassified information," potentially restricting transparency without an appropriate rationale.

Document: DOD IG report on CUI program implementation

The compromise federal debt ceiling bill, passed by the Senate late last night and on its way to the White House for the president's signature, would fund total defense at $886 billion, with a 1% increase in FY-25:

GOP senators want 'emergency defense supplemental' to follow latest spending deal

Several GOP senators, including Sen. Susan Collins (ME), the ranking member on the Senate Appropriations Committee, said today they want a commitment from the White House and Senate Democrats to support an "emergency defense supplemental" following the passage of a deal that would raise the federal debt ceiling and lock in defense spending at levels they deem inadequate.

In case you missed it, we took a deep dive into how Boeing is upgrading the Air Force's grizzled B-52 bomber fleet:

Boeing leads two programs overhauling Air Force's oldest operational bomber

OKLAHOMA CITY, OK -- In a cavernous manufacturing bay here, Boeing engineers can climb inside and around a B-52 Stratofortress bomber the Air Force loaned to the company from the boneyard.