The Insider

The INSIDER daily digest -- August 6, 2025
By John Liang
August 6, 2025 at 2:04 PM

This Wednesday INSIDER Daily Digest has news on a major international naval exercise in Norfolk, VA along with coverage of the possibility of an independent Cyber Force within the Defense Department and more.

Inside Defense is in Norfolk, VA this week, covering a big international naval exercise:

LSE 2025 involves allies and partners, more LVC training

NORFOLK, VA -- This year's Large Scale Exercise 2025 is living up to its name, taking place across 22 time zones with seven U.S. numbered fleets, six component commands, 880 sailors and new involvement from allies and partners -- all in little over a week.

Our Inside Cybersecurity colleagues have a story on an independent Cyber Force within the Defense Department:

Think tanks launch commission to guide DOD creation of Cyber Force

Two think tanks have created a commission to charter a path for an independent cybersecurity service within the Defense Department, citing growing support for the long-debated idea amid stakeholder concerns about the military's current cyber operational readiness.

An Army notice issued this week expands on a bill introduced last week in the Senate, which would require the defense secretary to establish a program that enables the rapid development, testing and scalable manufacture of sUAS:

Army wants to use Red River for development, testing of small drones

The Army is interested in using Red River Army Depot near Texarkana, TX to manufacture, develop and test small unmanned systems, according to an Aug. 4 solicitation.

Amy Henninger, nominated to serve as director of operational test and evaluation, testified last week before the Senate Armed Services Committee:

DOT&E nominee plans to take office in new direction as drastic cuts loom

The Defense Department's independent testing office could see a major overhaul if President Trump's pick to lead it is confirmed by the Senate.

Document: Henninger, Powers, Denton, Kohlmann nominations testimony

Army missile procurement programs such as the Patriot Advanced Capability-3 Missile Segment Enhancement, the Precision Strike Missile and Guided Multiple Launch Rocket System are slated to get significant funding plus-ups in the Senate version of the fiscal year 2026 defense spending bill:

Senate appropriators want to add $2B for PAC-3 MSE procurement

The Senate Appropriations Committee intends to add more than $2 billion in procurement funding for the Patriot Advanced Capability-3 Missile Segment Enhancement in its fiscal year 2026 defense spending bill.

Combat vehicles need camo on the move, Army says
By Dominic Minadeo
August 5, 2025 at 4:47 PM

Slapping tree branches and scraps of netting on tanks will no longer hide crews on a sensor-ubiquitous battlefield, which is why the Army is starting to seek out a Mobile Camouflage System (MCS) from industry, according to a request for information posted today.

Combat vehicles today face “a wide range of modern threats,” according to the Army, like multispectral sensors, satellite and ground-based radar, precision guided munitions and unmanned aerial systems.

“Traditional static camouflaging methods are not applicable when vehicles are moving or operating in dynamic environments, leaving them susceptible to detection and engagement,” the RFI says.

The service’s current stealth capability, the Ultra-Lightweight Camouflage Net System (ULCANS) Increment 1, can hide vehicles from infrared and radar detection by suppressing their signature -- but only when they’re parked. And mounting parts of ULCANS to the top and sides of vehicles isn’t a match for today’s “near-constant” intelligence, surveillance and reconnaissance, according to the Army.

Vehicles are going to need a system that can tamp down their electromagnetic signature while soldiers drive them; at the top of the Army’s list right now are Abrams tanks, Armored Multi-Purpose Vehicles, Bradley Fighting Vehicles and Bradley Fire Support Team Vehicles, according to the RFI.

The Army will require an MCS solution that doesn’t hinder mobility, fits on a variety of vehicles and can integrate with already-mounted capabilities, like protection, targeting and weapons systems. It also needs to be lightweight, resistant to harsh weather, rapidly deployable and easily repaired, the RFI says.

It goes on to say that the MCS must suppress signatures across the entire electromagnetic spectrum, reduce thermal signatures stemming from the exhaust, engine, brake systems, wheels or tracks and “visually and spectrally” change the vehicle’s “recognizable shape” to avoid targeting.

Vendors will need to submit fewer than 20 pages detailing how their solution matches the Army’s needs, along with the readiness level of their technology, an overview of past efforts on the MCS, an estimated price tag and their production ability, the RFI says.

This comes as the Army recently added a $108 million new start for a Vehicle Protection Suite in its fiscal year 2026 budget request, which oversees active, reactive and passive protection systems, including a $15 million signature management paint job that will coat 389 combat vehicles to reduce thermal detection.

Industry responses to the RFI are due Sept 5.

IG evaluating INDOPACOM Defense Warning Network
By Shelley K. Mesch
August 5, 2025 at 3:11 PM

The Defense Department’s watchdog will be evaluating the effectiveness of the Defense Warning Network in supporting U.S. Indo-Pacific Command, according to a letter sent to DOD officials yesterday.

The inspector general’s office will look at whether the DWN is able to assist INDOPACOM in “meeting its warning intelligence requirements,” wrote Randolph Stone, assistant inspector general for evaluations of space, intelligence, engineering and oversight.

DWN was created through a December 2013 directive from then-Deputy Defense Secretary Ash Carter to package defense intelligence in a way to provide the “earliest possible awareness of potential threats, vulnerabilities and opportunities that may emerge from any circumstance.”

Stone’s letter notes the office may revise the evaluation’s objectives as work continues or through suggestions from management.

The INSIDER daily digest -- August 5, 2025
By John Liang
August 5, 2025 at 1:52 PM

This Tuesday INSIDER Daily Digest has news on the nominee to become the Pentagon's next top weapons tester's plans to overhaul that office, along with funding plus-ups to several Army missile programs as well as the effects of the strikes at key Boeing defense plants and more.

Amy Henninger, nominated to serve as director of operational test and evaluation, wants to combine operational and developmental testing efforts and make sure the office gets more involved with programs at the early stages:

DOT&E nominee plans to take office in new direction as drastic cuts loom

The Defense Department's independent testing office could see a major overhaul if President Trump's pick to lead it is confirmed by the Senate.

Document: Henninger, Powers, Denton, Kohlmann nominations testimony

Army missile procurement programs such as the Patriot Advanced Capability-3 Missile Segment Enhancement, the Precision Strike Missile and Guided Multiple Launch Rocket System are slated to get significant funding plus-ups in the Senate version of the fiscal year 2026 defense spending bill:

Senate appropriators want to add $2B for PAC-3 MSE procurement

The Senate Appropriations Committee intends to add more than $2 billion in procurement funding for the Patriot Advanced Capability-3 Missile Segment Enhancement in its fiscal year 2026 defense spending bill.

Related news on Air Force missile spending:

Air Force awards billions for AMRAAM, JASSM and LRASM

The Air Force has awarded missile makers Raytheon and Lockheed Martin $3.5 billion and about $4.3 billion, respectively, to boost deliveries of the vendors' advanced missile products, according to a July 31 Pentagon announcement.

The work stoppage at three Boeing factories in St. Louis, MO, St. Charles, MO and Mascoutah, IL marks the first time since 1996 that members of the local International Association of Machinists and Aerospace Workers chapter voted to walk off the job:

Boeing defense strike could spell trouble for some military programs

About 3,200 mechanics and other Boeing defense workers in the St. Louis area went on strike early this morning, adding strain to the production lines of high-profile military programs like the T-7 Red Hawk training jet and F-15EX Eagle II.

The Navy is seeking congressional permission to enter into one contract for Groton (SSBN-828) through SSBN-832 starting in FY-26, as this would provide "industrial base stability, production efficiencies, and cost savings when compared to the estimated cost of an annual procurement with options":

DOD submits proposal to allow contract for up to five Columbia subs, mirroring House and Senate provisions

The Defense Department is asking Congress to consider a new legislative proposal that would allow the Navy secretary to enter into a contract for up to five Columbia-class submarines beginning in fiscal year 2026, with a goal of improving industrial base stability and reducing schedule slippage.

Document: DOD's ninth FY-26 legislative proposals package

Bipartisan group of senators wants more protection for public shipyard workers
By Abby Shepherd
August 5, 2025 at 1:01 PM

A bipartisan group of senators formally introduced a new bill today that would protect the workforce at America’s four public shipyards from hiring freezes and mass layoffs -- a move that follows workforce reductions at-large across the Defense Department and other sectors.

Sens. Jeanne Shaheen (D-NH), Susan Collins (R-ME), Maggie Hassan (D-NH) and Angus King (I-ME) are behind the “Protecting Public Naval Shipyards Act,” brought forth before the Senate commenced its August recess last week and formally announced today.

“Our commitment to our national security relies on continued, sustainable investments in our shipyard workforce -- not a reckless hiring freeze,” King said in a news release. “Portsmouth Naval Shipyard plays a critical role in keeping our country safe, but there has been a lack of follow-through on the unprovoked employment pauses and mass layoffs there, so we are elevating this issue to legislation in order to maintain our nation’s safety and security, as well as the livelihoods of the men and women who power the shipyard.”

Advocating for the shipyard workforce is not new for these senators, and Shaheen and Collins directly called on the Navy and Office of Personnel Management to exempt public shipyards from cuts in a February letter, after the Pentagon announced plans to cut its civilian workforce by between 5% and 8%. In a hearing that same month, Shaheen said Portsmouth Naval Shipyard -- located in Kittery, ME -- must increase its workforce by 550 personnel annually to keep up with submarine repair work.

In March, a defense official confirmed to Inside Defense that federal civilian employees working in shipyard maintenance facilities and depots are exempt from the Trump administration’s federal layoffs -- layoffs that had already begun for other areas of the Navy’s civilian workforce.

Vice Chief of Naval Operations James Kilby also told lawmakers in March that public shipyard workers and civilian mariners at Military Sealift Command were exempt from the service-wide hiring freeze.

“We are trying to shape this in a manner that allows us to continue the most important work as we work through guidance from the administration,” Kilby told Sen. Mazie Hirono (D-HI) during a hearing on Defense Department readiness.

Despite these various assurances, lawmakers stated today they want further confirmation these workers will be protected.

“Our shipyard workforce represents an essential component of our national defense and preparedness -- they should have never been subjected to this administration’s ill-considered hiring freezes,” Shaheen stated. “The Portsmouth Naval Shipyard workforce is supposed to be exempt from the hiring freeze, but there continues to be issues with implementation. Our bipartisan bill enshrines that exemption in federal law and ensures that no public shipyard is subjected to such chaos and uncertainty in the future, allowing them to focus instead on the vital role they play in our national security.”

Army merges software contracts under $10 billion deal with Palantir
By Dominic Minadeo
August 5, 2025 at 12:53 PM

The Army last week awarded software contractor Palantir Technologies a new $10 billion agreement that funnels 75 contracts under a single deal in a move the service argues will boost buying flexibility and cost efficiency.

The contract, known as an “Enterprise Agreement,” folds 75 current contracts with Palantir, -- 15 as the prime and 60 as a subcontractor -- under one umbrella, according to an Aug. 1 Defense Department announcement, allowing for “volume-based discounts” and designed to cut out “contract and re-seller pass-through fees.”

“Consolidating these efforts under an EA will streamline future modifications and task orders under a single set of ordering instructions and terms and conditions, eliminating redundant contracting processes, streamlining resource touch points and significantly reducing both administrative overhead and procurement timelines,” an Army notice, published May 23, says.

That comes as Palantir yesterday revealed it surpassed $1 billion in quarterly revenue for the first time, with revenue increasing 48% from the prior year, Ryan Taylor, chief revenue officer, said during the company’s second quarter earnings call.

“The Army is one of our longest standing customers,” Taylor said. “We are honored to embark on this next phase together.”

That comes less than two months after the chief technology officer at Palantir, Shyam Sankar, was sworn into Detachment 201, the Army’s new Executive Innovation Corps designed to form a closer relationship with the private sector.

"This Enterprise Agreement represents a pivotal step in the Army's commitment to modernizing our capabilities while being fiscally responsible," Leo Garciga, the Army’s chief information officer, said in a statement. "By streamlining our procurement processes and leveraging enterprise-level discounts, we are not only enhancing our operational effectiveness but also maximizing our buying power."

Nebraska company wins $10M to develop US-based critical mineral supply chain
By Theresa Maher
August 5, 2025 at 11:53 AM

The Defense Department awarded Nebraska-based Elk Creek Resources Corp. (ECRC) $10 million to develop the first U.S. polymetallic deposit targeting near-term production for critical minerals including scandium, niobium and titanium, DOD announced today.

“Geological scarcity and limited production infrastructure drive scandium industrial shortages,” Vic Ramdass, acting assistant secretary of defense for industrial base policy, said. “Establishing a vertically integrated domestic supply chain for scandium alloy production enables multiple avenues for innovation in defense aerospace.”

The award -- granted via Title III of the Defense Production Act -- will allow ECRC to finish its feasibility study-level engineering, perform additional reserve drilling and update cost estimates for its Elk Creek Critical Minerals Project, DOD said.

That project will allow ECRC to integrate aluminum-scandium alloys into aerospace platforms via a defense prime contractor. Scandium alloys have begun replacing titanium alloy and aluminum alloy components in DOD systems since they are more lightweight and high-strength, Ramdass said.

Scandium has applications in DOD systems including advanced propulsion, next-generation energy systems, hypersonic weapon systems and aircraft components, DOD said.

The news comes as the Chinese Commerce Ministry continues to ramp up restrictions on exports of critical minerals vital to defense applications, prompting the Trump administration to issue an executive order in March aimed at accelerating domestic mineral production.

If successful, the Elk Creek project will make ECRC -- a NioCorp Developments Ltd. subsidiary -- one of the first scandium producers in the U.S., according to DOD.

The ECRC investment marks the latest of 10 awards from the DPA Purchases Office totaling more than $336 million since the beginning of fiscal year 2025, DOD said.

DTIC next office facing workforce reductions
By Shelley K. Mesch
August 5, 2025 at 11:36 AM

The Pentagon's repository for research and development information is the next office facing major cuts under the Trump administration as the under secretary for research and engineering ordered a workforce reduction Monday.

Under Secretary Emil Michael ordered the Defense Technical Information Center’s staff reduced to just 40 civilian positions by Aug. 25 in an effort to “streamline the organization,” he wrote in a memo.

The center “officially” has 154 employees, a spokesperson for the under secretary’s office said, meaning the cut would represent a nearly 75% decrease in staff.

The reduction in force (RIF) comes with the order for an “AI-first digital transformation” of the office, Michael wrote.

“The [DTIC] was created to serve as a centralized repository of R&D information, allowing DOD to easily and effectively leverage and share technical knowledge,” he wrote.

“However, its unfocused organizational model and legacy information platform are not suited to keep pace with global R&D, take advantage of Artificial Intelligence (AI), or integrate with other data and intelligence systems that support strategic deterrence-impacting R&D investment decisions by the Department of Defense.”

Michael anticipates the changes to save more than $25 million per year, he said.

Acting Administrator Silvana Rubino-Hallman, who was appointed July 29, will oversee the workforce reduction and digital transformation.

“The Acting Administrator will also conduct a zero-based core mission review for all contractor personnel augmenting DTIC staff and will direct cognizant contracting officers to issue any stop-work-orders as appropriate,” he wrote.

The INSIDER daily digest -- August 4, 2025
By John Liang
August 4, 2025 at 1:49 PM

This Monday INSIDER Daily Digest has news on several air-to-air and air-to-ground missile programs along with purchases of Joint Light Tactical Vehicles and humvees.

Lockheed Martin and RTX are getting $7.8 billion in contracts for AGM-158C Long Range Anti-Ship Missiles and AGM-158B Joint Air-to-Surface Standoff Missiles as well as AIM-120 Advanced Medium Range Air-to-Air Missiles:

Air Force awards billions for AMRAAM, JASSM and LRASM

The Air Force has awarded missile makers Raytheon and Lockheed Martin $3.5 billion and about $4.3 billion, respectively, to boost deliveries of the vendors' advanced missile products, according to a July 31 Pentagon announcement.

More missile news:

Navy freezing AARGM-ER production plans after test failure, seeks to divert funds

The Navy is freezing immediate production plans for its next-generation anti-radar missile following a recent test failure, opening the door for the Pentagon to redirect more than $200 million in previously approved funding to other military priorities.

Despite a decision to halt future humvee purchases, the Army is planning to buy 545 more vehicles this year:

Army buys 545 humvees following procurement cancellation

The Army is spending $127 million on 545 more humvees three months after Defense Secretary Pete Hegseth ordered a stop on future buys of the vehicle under the Army Transformation Initiative.

For more than a year, senior Army leaders have heavily emphasized the need for more funding flexibility within the budget to more easily move money around:

Senate appropriators curtailing some of Army's agile funding strategy

The Senate Appropriations Committee wants the Army to scale back its agile portfolio funding strategy for fiscal year 2026, lawmakers wrote in their version of the defense spending bill.

Senators want the Marine Corps to submit a revised Joint Light Tactical Vehicle acquisition strategy:

Appropriators want a reworked JLTV plan from Marine Corps

Senate appropriators want the Marine Corps commandant to retool the service's acquisition strategy for the Joint Light Tactical Vehicle program after the Army cancelled the vehicle in May without giving the Marines a heads up.

Proposal would allow DOD to work with other countries on space domain awareness
By Shelley K. Mesch
August 4, 2025 at 1:26 PM

The Pentagon is requesting congressional approval to work more closely with allied and partner countries on space domain awareness and other space operations, according to a legislative proposal posted Friday.

The proposal would add “space domain awareness and space operations” to the list of mission areas under Title 10 of the U.S. Code, Section 333. Foreign security forces: authority to build capacity.

The Pentagon requested about $1.2 billion in funding in fiscal year 2026 that would be affected by such a change, according to the proposal, with $20 million to $30 million additions over the next four years.

“Leveraging the contributions of our allies and partners requires us first to help them strengthen their ability to operate in today’s contested space environment, either alone or in concert with us,” the proposal states. “Space-related [building partner capacity] is a high priority for the Department; however, current efforts are hindered by a lack of clearly applicable authority.”

Some capabilities -- including global positioning, satellite communications and geospatial intelligence, surveillance and reconnaissance – are more clearly covered under the current law, the proposal notes, because they are related to already-approved mission areas.

Army wants to study investments in 'affordable' Launched Effects
By Dan Schere
August 4, 2025 at 9:22 AM

The Army's Combat Capabilities Development Command (DEVCOM) intends to launch a study of science and technology investments in "Structural Concepts for Affordable Launched Effects," according to a government notice posted July 30.

The investments would help the development and manufacturing of these components for both Launched Effects and small unmanned aerial systems “at drastically lower cost and significantly higher production rates than currently achievable,” the notice states.

“These investments are expected to be design agnostic, agile manufacturing approaches and technologies that can be broadly applied to many or all LE and sUAS, rather than solutions tailored to specific designs,” the notice states.

The Army is particularly interested in using technologies that can be embedded within units in order to enable soldiers to manufacture the LE and sUAS components in the field.

The main parts the Army is interested in sourcing as part of this study include the fuselage, wing and tail structures, as well as non-structural components such as mission equipment packages and batteries, according to the service.

The Army is asking for responses to the solicitation by Aug. 29.

In the last few years, due to wars in Ukraine and Israel, Army senior leaders have been shifting much of their modernization priorities to the areas of UAS, counter UAS, Launched Effects and Electronic Warfare. Launched Effects, systems that can be launched from both ground and air platforms, are meant to increase the Army’s intelligence, surveillance and reconnaissance capabilities.

“Lower production costs enable the Army to deploy a larger number of launched effects, enhancing overall mission effectiveness without straining the budget,” last week’s solicitation notes.

In his April 30 memo ordering the Army Transformation Initiative, Defense Secretary Pete Hegseth directed the Army to field both UAS, as well as air and ground Launched Effects in every division by the end of 2026.

In its fiscal year 2026 budget request, the Army has put $67 million in procurement funding into an agile “Launched Effects Family of Systems” portfolio. This money will go toward UAS that will increase lethality in Infantry Brigade Combat Teams “in terms of stand-off and destruction against dismounted formations, armored vehicles, and tanks” according to budget justification documents.

Procurement funding for the Launched Effects Family of Systems will mainly be spent on the Low Altitude Stalking and Strike Ordnance program -- an antitank drone that consists of an all-up round and fire control system. LASSO is meant to fly 20km or less and allow soldiers within IBCTs to locate and attack targets, while also giving them the “ability to abort against targets in a dynamic situation or prosecute targets that would have been deemed non-viable in past due to the higher collateral damage associated with alternative munitions.”

The Army plans to spend $187 million on research, development, test and evaluation for “agile systems development” within the Launched Effects portfolio, in FY-26. This includes funding for development of the long range precision munition, lethal semi-autonomous drones, the soldier borne sensor and sUAS, according to justification documents.

The week ahead
By Tony Bertuca
August 4, 2025 at 5:00 AM

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

Monday

The Mitchell Institute hosts a discussion with the Space Force's chief operations officer.

Thursday

The Mitchell Institute hosts a discussion with the commander of the 8th Air Force and Joint Global Strike Operations Center.

The INSIDER daily digest -- August 1, 2025
By John Liang
August 1, 2025 at 2:53 PM

The bulk of this Friday INSIDER Daily Digest revolves around the Senate fiscal year 2026 defense appropriations bill and accompanying report.

Before we get to the bill, though, some DOT&E news:

Nominee to head DOT&E waves off lawmaker concerns about cuts to office

Lawmakers on the Senate Armed Services Committee questioned the nominee picked to lead the Pentagon's independent weapons testing office today on how the fallout from planned personnel cuts could impact her ability to do the job.

Document: Henninger, Powers, Denton, Kohlmann nominations testimony

More news on the Army's transformation initiative:

Army and Congress at odds on OIB construction costs

The Army is still mostly mum on its supposed plan to close certain depots and arsenals three months after announcing the Army Transformation Initiative, and while it has leaned on the premise that it's far pricier to build in the organic industrial base than to harness commercial partnerships, the only figure that's been cited in congressional testimony to illustrate that point is a misleading one.

Moving on to the spending bill, senators want the Marine Corps to send in a revised plan for how the service will procure Joint Light Tactical Vehicles:

Appropriators want a reworked JLTV plan from Marine Corps

Senate appropriators want the Marine Corps commandant to retool the service's acquisition strategy for the Joint Light Tactical Vehicle program after the Army cancelled the vehicle in May without giving the Marines a heads up.

More appropriations news:

Senate appropriators reprimand Army for being hush-hush on transformation initiative details

The Senate Appropriations Committee, in its fiscal year 2026 defense spending bill, has used forceful language in demanding the Army provide greater detail on its multifaceted transformation initiative, requiring the secretary and chief of staff to provide quarterly briefings to the congressional defense committees.

Senate appropriators add $780M to alleviate F-35 pressure points

The F-35 Joint Strike Fighter would get a $780 million sustainment boost across several funding lines in the Senate Appropriations Committee's version of next year's spending bill as lawmakers continue to cite the program's ongoing developmental challenges.

Senate appropriators whack Trump administration for $10B procurement shortfall

The Senate Appropriations Committee today said the Trump administration's historically late budget -- and its bifurcated fiscal year 2026 request -- contributed to a $10 billion disconnect in funding for priority procurements that were left out of the White House's budget submission and not accounted for in the recently passed reconciliation bill.

DOD plans to cancel E-7A Wedgetail appear dead

The Defense Department's attempt to cancel the E-7A Wedgetail program is all but dead as all four defense committees in Congress have put funding for the effort into their fiscal year 2026 bills.

Senate spending bill adds $1.4B for F/A-XX, drawing line between appropriators and Pentagon

The Senate Appropriations Committee's draft fiscal year 2026 spending bill looks to fund the Navy's F/A-XX sixth-generation aircraft to the tune of $1.4 billion, teeing up a fight between congressional appropriators and the White House over the future of the program.

Oshkosh reports an expected defense vehicle sales drop in Q2
By Dominic Minadeo
August 1, 2025 at 12:42 PM

Oshkosh Corp. saw a predictable drop in defense vehicle sales in the second quarter of 2025 with its "winding down" of Joint Light Tactical Vehicles domestically following its 2023 defeat against AM General for a follow-on contract with the Army, company officials announced during an earnings call today.

Oshkosh, which newly rebranded its defense unit as the “transport” segment to account for its Next Generation Delivery Vehicle contract with the United States Postal Service, saw a $92.8 million drop in sales to $479.1 million for the quarter, a 16.2% dip compared to a year ago.

Despite decreased sales, operating income for the segment rose by nearly 50% to $17.8 million with a margin of 3.7%, an uptick that Mathew Field, vice president and chief financial officer of the company, attributed to better Family of Heavy Tactical Vehicles pricing, calling it the “largest contributor.”

The “improved FHTV pricing” matches similar pricing expectations following the company’s recent Family of Medium Tactical Vehicles three-year contract extension for variants of the low velocity air drop (LVAD) version of the FMTV A2, “which have been favorably received by the DOD,” John Pfeifer, president and CEO of Oshkosh, said during the call.

“This contract includes updated pricing and economic price adjustment mechanism, which we believe will yield favorable returns as we build units under the contract,” Pfeifer said.

Oshkosh expects to start building on the new FMTV contract sometime in the middle of 2026, Field said.

That follows the five-year extension that Oshkosh won last year for more FHTVs, which the company at the time predicted would kick off deliveries this month; both contracts have “similar terms of performance,” according to Field.

Field also said a rise in tactical wheeled vehicle sales overseas and a production ramp up of the NGDV slightly offset the sales decline for the quarter, as the company reported that it is steadily progressing on its plan to boost production of the new postal vehicle at its Spartanburg, SC, facility.

Looking forward at a “dynamic” tariff environment, Field predicted a “more limited impact from tariffs” as compared to the previous quarter as a result of cost actions Oshkosh has put in place for the year.

“We project the impact of tariffs to be fully offset,” Field said, with adjusted earnings per share expected around $11 for the year and total net sales of $10.6 billion, matching the company’s pre-tariff guidance.

Total second quarter sales for Oshkosh were $2.73 billion, a decline of $114.8 million because of lower sales volumes in the transport and access segments; adjusted earnings per share went up to $3.41, up 2.1% from the prior year.

“Despite the dynamic tariff environment, we're well positioned to take the necessary actions to deliver strong performance,” Pfeifer said.

The INSIDER daily digest -- July 31, 2025
By John Liang
July 31, 2025 at 1:55 PM

This Thursday INSIDER Daily Digest has news on the Senate Appropriations Committee marking up the FY-26 defense spending bill, plus HII's quarterly earnings, Air Force One and more.

Senators have marked up the fiscal year 2026 defense spending bill:

Senate appropriators advance bill to increase defense spending by $20B

The Senate Appropriations Committee voted 25-3 to approve a fiscal year 2026 defense spending bill today that would provide $852 billion for the Defense Department, an increase of more than $20 billion above what House appropriators have supported.

HII held its quarterly earnings call with Wall Street analysts this morning:

HII confident in current joint submarine work with Electric Boat, open to exploring options

As the Navy explores the possibility of increased competition in submarine construction, shipbuilder HII's CEO expressed optimism today in the current arrangement between HII and General Dynamics Electric Boat but added that alternatives could be explored.

The latest Air Force One modernization news:

Pentagon seeks $150M boost to accelerate new Air Force One delivery to 2027

The Pentagon is seeking congressional approval to shift $150 million into the Air Force One replacement program, a move aimed at accelerating delivery of the next presidential aircraft by as much as two years.

The goal of Flytrap, in its first year, is to develop, test and field counter UAS technologies with NATO allies and partners in order to enhance "deterrence capability":

Army incorporating 'layered approach' to counter drone strategy in European exercise

An ongoing counter-drone exercise in Europe being conducted by the Army reiterates the need for a "layered approach" to defending against the modern day battlefield threat, according to officials.

A recent cooperative research and development agreement is intended to help the Air Force build common standards and interfaces for mission autonomy as vendors develop interoperable unmanned systems:

Reliable Robotics, Air Force team up to create autonomy reference architecture

The Air Force has selected technology firm Reliable Robotics to develop the software framework needed to link commercial AI configurations with the service's autonomous platforms, the company announced Tuesday.

In a recent memo, Defense Pricing, Contracting, and Acquisition Policy Director of Price, Cost and Finance Peter Guinto declares that "effective immediately, all qualifying contract actions for critical munitions are approved for participation in the Section 890 Pilot Program ('TINA Lite' Pilot Program)":

DOD approves critical munitions for streamlined pricing pilot program

The Defense Department has approved large critical munitions contracts for a pilot program intended to accelerate acquisition timelines by allowing defense contractors to reduce the typical amount of certified cost and pricing data they submit to the government, according to a new memo.

Document: DPAP memo on approval of Section 890 pilot program for all munitions contract actions

Last but by no means least, here's the latest CMMC news from our colleagues at Inside Cybersecurity:

CMMC accreditation body touts voluntary participation in assessments as final rulemaking gets closer to fruition

The accreditation body behind the Pentagon's Cybersecurity Maturity Model Certification program provided an update on the voluntary efforts of defense contractors to get third-party assessments at an energized town hall meeting, where stakeholders seemed encouraged by the Defense Department's recent milestone to move toward a final rule kicking off the formal launch of the initiative.