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The INSIDER daily digest -- July 11, 2025
By John Liang
July 11, 2025 at 2:59 PM

This Friday INSIDER Daily Digest has news on the fiscal year 2026 defense policy bills being debated in both chambers of Congress, as well as deep dives into military drone spending and more.

We start off with coverage of the Senate Armed Services Committee's fiscal year 2026 defense policy bill:

Senators add more than $30B to defense topline in annual policy bill

The Senate Armed Services Committee has voted 26-1 to advance a defense authorization bill that adds more than $30 billion to the White House request for fiscal year 2026, with most of the funds slated for shipbuilding and munitions, according to senior congressional officials and a summary released by the panel.

Senate policy bill would add $8.6 billion to shipbuilding account

The Senate Armed Services Committee aims to increase shipbuilding spending with its fiscal year 2026 defense policy bill, congressional officials told reporters today, saying the legislation authorizes approximately $8.5 billion above the levels requested by the Navy and supported by House authorizers.

Senate authorizers issue directives for unmanned technology development in draft defense bill

With a topline of nearly $925 billion, the Senate Armed Services Committee unveiled its draft fiscal year 2026 defense authorization bill that would prioritize Navy advancement in several areas, including unmanned technology.

Draft Senate defense authorization bill would shift counter SUAS mission from Army to OSD level

Senate authorizers want to shift the responsibility of counter small unmanned systems from the Army to within the Office of the Secretary of Defense, according to an executive summary of the "chairman's mark" of the draft defense authorization bill.

Document: Senators' FY-26 defense policy bill summary

House authorizers also were working on their version of the policy bill:

Congressional authorizers look to reverse E-7A Wedgetail cancelation

Lawmakers on the House Armed Services Committees may force the Trump administration to continue the E-7A Wedgetail program, even as the Defense Department sought to cut the effort in favor of similar space-based capabilities.

Draft legislation moves to cement Global Strike Command amid bomber reorg concerns

Draft legislation would lock in the Air Force's Global Strike Command as the central authority for nuclear and long-range strike operations, a proposal that directly responds to concerns raised earlier this year by the head of U.S. Strategic Command over a proposed bomber force reorganization.

Lawmakers want Navy to diversify sourcing for Mk-72 and Mk-104 rocket motors

House authorizers are seeking to rapidly diversify the pool of alternative manufacturers of Standard Missile-6 components -- including Mk-72 and Mk-104 rocket motors -- and are asking the Navy to expand efforts in missile production and sustainment.

Document: House 'chairman's mark' of the FY-26 defense policy bill

We move on to DOD spending on drones:

DOD drone spending surges across 214 budget lines as Hegseth orders mass fielding

While the Pentagon has a new plan for "drone dominance," you won't find the effort concentrated in one part of the defense budget.

Hegseth 'drone dominance' memo drives decision down, transfers DIU Blue List to DCMA

A new order from Defense Secretary Pete Hegseth includes several directives aimed at facilitating "rapid proliferation” of small uncrewed aerial systems across every military unit.

Document: Hegseth memo on drone dominance

News on the Air Force seeking to have its Collaborative Combat Aircraft work with F-22 fighters:

F-22 Raptor tapped as first fighter to pair with Air Force's autonomous drones

The Air Force wants to kick-off a Crewed Platform Integration program next year to pair its nascent Collaborative Combat Aircraft with F-22 Raptor jets, according to fiscal year 2026 budget request documents.

Navy breaks ground on facility for subsea and seabed warfare development
By Abby Shepherd
July 10, 2025 at 3:51 PM

The Navy has broken ground on a new subsea and seabed warfare facility to encourage further research, development, testing and evaluation of autonomous unmanned systems -- a move that follows increased focus from the service on unmanned technology in general.

The new facility at the Naval Surface Warfare Center, Panama City Division, FL, will support the service’s “crucial seabed warfare mission by accelerating the development and deployment of critical operational capabilities,” according to a Wednesday news release.

The center’s direct access to the Gulf of Mexico will allow for unmanned systems developed there to be easily launched and recovered, the release added.

"This project is about strengthening our ability to deliver critical solutions to the fleet," Capt. Paul Stence, Jr., NSWC PCD commanding officer, said in a statement. "The undersea domain is of increasing strategic importance, and this facility will enable us to maintain our competitive edge. The true strength of this building lies in the talented individuals who will work here. This project is a testament to the hard work and dedication of countless individuals who are supporting the warfighters both now and, in the future, and this facility will provide the tools and resources they need to excel."

Construction on the new facility begins as the Navy has taken a widespread approach to testing and improving upon unmanned technology -- including the use of a “confidence course” to test run unmanned underwater vehicles in Keyport, Washington. This course has held dozens of test runs in the past year, Submarine Forces Commander Vice Adm. Robert Gaucher said in March.

“We've taken a lesson from some of the self-driving cars, and in particular, when they built the Google car, they built a city in California to just practice driving the streets for autonomy purposes,” Gaucher said during a panel on autonomous undersea warfare at the Hudson Institute. “So, we've built our underwater version of that up in the Keyport area.”

The INSIDER daily digest -- July 10, 2025
By John Liang
July 10, 2025 at 2:48 PM

This Thursday INSIDER Daily Digest has extensive coverage of the House Armed Services Committee's draft defense policy bill.

The Army is prototyping the Tactical Intelligence Targeting Access Node (TITAN) with contractor Palantir Technologies, who is taking the lead on development:

House authorizers seeking details on TITAN development process

Lawmakers on the House Armed Services Committee worry the Army doesn't have a clear vision for its next-generation ground station for intelligence, surveillance and reconnaissance, according to a draft "chairman’s mark" of the committee's defense policy bill obtained by Inside Defense Tuesday.

The language in this year's draft House policy bill aligns with the Marine Corps' recently revised plans for Landing Ship Medium procurement and with the Navy's FY-26 budget documents:

House authorizers back new LSM fielding plan, direct use of vessel construction manager

House authorizers are backing the Navy and Marine Corps' new approach to Landing Ship Medium procurement with their draft fiscal year 2026 defense policy bill, which directs the Navy secretary to utilize a commercial vessel construction manager to contract eight follow-on LSMs.

House lawmakers want the Navy secretary to certify to the congressional defense committees that the Modular Attack Surface Craft design "will be designed and constructed for the primary purpose of autonomous operation before the start of construction":

Lawmakers: Navy must certify MASC's autonomous ability before construction starts

The House Armed Services Committee's draft fiscal year 2026 defense authorization bill would implement restrictions on the construction of the Navy's new Modular Attack Surface Craft, as the program emerges as a joint solution between medium and large unmanned surface vessels.

The United States-Israel Defense Partnership Act of 2025, introduced by Rep. Joe Wilson (R-SC) in the House and Sen. Dan Sullivan (R-AK) in the Senate, would, among other things, establish new cooperative research and development programs and build on existing collaborations between the two nations:

Draft defense bill seeks new U.S. defense partnerships with Israel

The House Armed Services Committee's fiscal year 2026 defense policy bill includes provisions from bicameral legislation introduced earlier this year aimed at expanding the United States' defense partnership with Israel, according to an early draft of the bill obtained by Inside Defense.

The initial KC-135 Drone Delivery Mechanism was completed sometime in FY-24, but the FY-26 funding request appears to be the first time this feat has been disclosed:

Drones may soon launch off KC-135 tankers

The Air Force has quietly developed a capability to deploy small drones from its KC-135 Stratotanker fleet. Now it wants to create an acquisition plan to integrate the new function onto the 60-year-old aerial-refuelers, according to the service’s fiscal year 2026 budget request.

The draft House defense policy bill has lawmakers reacting to the Army's proposed transformation initiative:

Draft House defense authorization bill adds money for legacy Army aircraft

In spite of the Army Transformation Initiative's de-emphasis on manned helicopters, House authorizers have signaled for now that they intend to continue pumping dollars into some of those programs.

House authorizers take issue with ATI, ground robotics and vehicle maintenance in draft spending bill

House authorizers have scorned what they see as a lack of foresight from the Army in its rollout of the service's Transformation Initiative in their draft fiscal year 2026 defense policy bill, citing a lack of clarity and blueprints to back up the Army's major program switch-ups.

At least two Navy ship classes are facing delivery delays:

Initial Flight II LPDs face nine- to 11-month delays

The Navy is predicting delays of nine to 11 months for its first three Flight II San Antonio-class amphibious warships, according to the service’s fiscal year 2026 budget books, which point to workforce-related challenges.

Delivery of T-AGOS 25 delayed by four years

The delivery of the T-AGOS 25 anti-submarine warfare ship has been delayed by four years, according to the Navy's fiscal year 2026 budget request, which outlines various design challenges for the program.

Document: Navy's FY-26 procurement budget justification books

Marine Corps terminates development of JLTV-mounted Tomahawk launcher
By Nick Wilson
July 10, 2025 at 1:39 PM

The Marine Corps is canceling efforts to develop a mobile fires system for Tomahawk missiles after early testing found the capability poorly suited to expeditionary environments, according to fiscal year 2026 budget documents.

The Long Range Fires (LRF) program aimed to equip a Remotely Operated Ground Unit for Expeditionary Fires (ROGUE-Fires) vehicle with a single-cell MK-41 vertical launch system to fire Tomahawk missiles, providing combatant commanders with a mobile system meeting land and maritime strike requirements.

However, after completing system development and running tests in FY-25, the Marine Corps concluded “the LRF system was not able to be employed in austere, expeditionary littoral environments” and decided to scrap the effort, budget documents state.

The program, which was established in FY-21 and achieved milestone B in FY-22, received about $30 million in research and development funding in FY-25. Last year, the Marine Corps predicted it would request another $15 million in FY-26.

Though the service is abandoning further LRF development, it continues to advance fielding plans for the Navy/Marine Expeditionary Ship Interdiction System (NMESIS), a similar mobile ground-launch system that fires Naval Strike Missiles (NSM) from the ROGUE-Fires vehicle.

The system, which provides forward forces with a mobile anti-ship capability, is an important piece of Marine Corps force design and is seen by the service as especially valuable in deterring China in the Indo-Pacific.

The FY-26 request seeks $207 million for the program and looks to initiate procurement of 32 NMESIS Block II systems. The request includes an additional $170 million to buy 90 NSMs for use in the NMESIS system.

Notably, the Marine Corps’ budget excludes procurement funds for the JLTV -- the manned vehicle that serves as the base for the robotic ROGUE-fires vehicle.

Though budget documents cite a delivery backlog as the reason for the procurement pause, the Army recently decided to divest from the joint JLTV program in a move that is expected to drive up unit costs and complicate the Marine Corps’ procurement picture for the vehicle going forward.

House authorizers want briefing on possible multiyear procurement for LTAMDS
By Dan Schere
July 9, 2025 at 4:44 PM

The House Armed Services Committee, in its draft defense authorization bill, is asking the Army secretary to brief the committee on the possibility of using a multiyear procurement strategy for the Lower Tier Air and Missile Defense Sensor.

LTAMDS, the eventual replacement for the Patriot radar, has the ability to scan 360 degrees of battlespace and is meant to track advanced threats that fly at high speeds, such as hypersonic weapons.

The Army included $637 million for LTAMDS procurement in its fiscal year 2026 budget request, which will buy four of the systems according to budget justification documents. Additionally, the Army included $618 million to procure four additional sensors and ancillary equipment in the reconciliation bill that was recently passed by Congress.

LTAMDS recently transitioned to milestone C, and the Army plans to procure a total of 94 radars. The Pentagon’s inspector general has estimated the program will cost a total of $13 billion, $7.3 billion of which will be in procurement.

In the draft authorization bill, lawmakers have asked the Army secretary to brief the committee by April 1, 2026 on the “feasibility” of entering into a multiyear contract for LTAMDS. The briefing is to include a timeline of how long it will take to equip all Patriot battalions with the capability, as well as an analysis of at least two different multiyear contract options, at least one of which assumes an average of three battalions of radars per year, the legislation states.

The House authorizers are also asking for an estimate of potential cost and schedule savings that a multiyear contract would bring, along with information on impacts to the industrial base.

In his April 30 memo to the Army outlining the transformation initiative tenets, Defense Secretary Pete Hegseth wrote one potential contracting reform would be to expand multiyear procurement agreements “when cost-effective."

The INSIDER daily digest -- July 9, 2025
By John Liang
July 9, 2025 at 12:51 PM

This Wednesday INSIDER Daily Digest has news on the unfunded priorities lists submitted to Congress along with coverage of the draft FY-26 defense policy bill.

We start off with coverage of the services' and combatant commands' unfunded priorities lists:

Air Force submits whopping $9.9 billion unfunded priorities list with $4.1 billion for munitions procurement

The Air Force has sent Congress a $9.9 billion unfunded priorities list for fiscal year 2026, with nearly half of that request focusing on bolstering the service’s munitions inventory, according to documents obtained by Inside Defense.

Bulk of Space Force $6 billion unfunded priorities list would go to MILNET

More than half of the $6 billion in the Space Force's unfunded priorities list comes from a need for research and development on the MILNET satellite communications effort, according to the document obtained by Inside Defense.

SPACECOM submits $2.5 billion UPL

U.S. Space Command submitted to Congress a list of unfunded priorities for fiscal year 2026 totaling $2.5 billion, according to a cover letter obtained by Inside Defense.

CENTCOM submits $732M unfunded list; seeks prototyping authority

U.S. Central Command has sent Congress a $732 million unfunded priorities list, keying unmet needs in electronic warfare and tactical drones, while also seeking the authority to begin limited prototyping of emerging technologies in a bid to become a live "battle lab" for the Pentagon, according to documents obtained by Inside Defense.

STRATCOM submits $322 million UPL

U.S. Strategic Command submitted to Congress a fiscal year 2026 unfunded priorities list totaling $322 million with about a third of the dollars marked for a classified program.

Pentagon CTO sends $24.6M unfunded priorities list for FY-26 SBIR/STTR projects to Congress

The office of the under secretary of defense for research and engineering has sent Congress an unfunded priorities list totaling $24.6 million for what it deems to be the Pentagon's most critical Small Business Innovation Research and Small Business Technology Transfer projects in fiscal year 2026, according to documents obtained by Inside Defense.

U.S. Northern Command seeks rapid investment in AI and border technology

U.S. Northern Command has identified more than $35 million in unbudgeted "priority" funding to jump-start artificial intelligence initiatives and surveillance improvements along the U.S.-Mexico border, according to a memo and accompanying justification documents obtained by Inside Defense.

Documents: FY-26 unfunded priorities lists

We also have coverage of the draft fiscal year 2026 defense policy bill:

House authorizers would restrict KC-46 deliveries until category 1 deficiency fixes are cleared

Under the House Armed Services Committee's draft version of the fiscal year 2026 defense policy bill, the Air Force would not be able to accept new production KC-46 Pegasus tankers until a plan is in place to correct all remaining category 1 deficiencies.

Draft defense bill would authorize procurement of two carriers, as questions of future viability and delays surround program

The House Armed Services Committee's draft fiscal year 2026 defense authorization bill would approve the procurement of two Ford-class aircraft carriers and allow for the use of incremental funding, while uncertainty surrounds the program’s future as the Navy seeks to remain competitive with China.

Document: House 'chairman's mark' of the FY-26 defense policy bill

An Army munitions program is facing production delays:

Army's 155mm production rate stalls, 100,000 per month mark delayed till spring 2026

The Army is still churning out 40,000 155mm artillery shells per month, a stalled rate that matches the pace the service announced it had hit nearly a year ago.

Air Force rethinking Rocket Cargo testing location
By Shelley K. Mesch
July 9, 2025 at 11:23 AM

The Air Force Research Laboratory is looking at whether it can sufficiently test its Rocket Cargo transport program somewhere other than the originally planned Johnston Atoll, according to a Federal Register notice posted today.

The Air Force had been preparing an environmental assessment to build two landing pads at the uninhabited U.S. territory in the Pacific Ocean to test and demonstrate Rocket Cargo. That announcement, made in March, said tests would begin later this year.

The notice today does not say why AFRL began assessing alternatives.

“During the period of abeyance, the Air Force Research Laboratory will consider whether there are available options for conducting the demonstration at a location other than Johnston Atoll,” the notice states. “The [Air Force Department] will continue to ensure full compliance with the National Environmental Policy Act and other applicable laws on this activity.”

The Air Force “has elected to hold the preparation of the Johnston Atoll environmental assessment for a proposed Rocket Cargo landing demonstration,” Air Force spokeswoman Laurel Falls told Inside Defense in an email. Another notice will be published if the service restarts the assessment or ultimately cancels it, she added.

Rocket Cargo is an AFRL Vanguard program intended to rapidly deliver military cargo to various points around the globe using rockets. The testing would include landing reentry vehicles at the selected site up to 10 times over the next four years.

The program plans to use commercial rockets for the transport missions. SpaceX won a $102 million contract for the program in 2022 to analyze SpaceX data and run demonstrations, the program manager said at the time.

AFRL is also working with Rocket Lab USA and Sierra Space on technologies associated with cargo payloads, containers and rockets, Rocket Cargo Program Manager Daniel Brown told Inside Defense. He said he expects the list of involved businesses to grow this year.

AFWERX and SPACEWERX are also supporting the effort through the small business innovation research programs, Brown said. Some of the small businesses taking part include Knight Aerospace, Inversion Space, Outpost Technologies and the Launch Company.

“We expect the SBIR activities and new opportunities will continue in the coming years to further expand the diversity of commercial capabilities,” he said.

Environmental advocates have pushed back against the plan at the Atoll, which is considered a national wildlife refuge.

The Center for Biological Diversity filed a lawsuit last month against the Air Force and U.S. Fish and Wildlife Service for failing to respond to a Freedom of Information Act request related to the decision, the Honolulu Star-Advertiser reported.

“Landing massive rockets in one of the most isolated and valuable habitats for seabirds would be as destructive and irresponsible as it sounds,” said Maxx Phillips, the center’s Hawaii and Pacific Islands director, in a statement. “That’s exactly why the military and SpaceX are trying to keep this project’s details hidden from the public. This project threatens to destroy a site that millions of seabirds need for nesting and overwintering, all in the name of military logistics and Elon Musk’s profit.”

DOD to restart Ukrainian military aid
By Tony Bertuca
July 8, 2025 at 5:31 PM

The Defense Department, at the direction of President Trump, will again begin sending U.S. weapons to Ukraine so it can continue to defend itself against an ongoing Russian invasion.

The weapons shipments, which were paused last week amid a global review of U.S. munitions, will “ensure the Ukrainians can defend themselves while we work to secure a lasting peace and ensure the killing stops,” according to a statement from chief Pentagon spokesman Sean Parnell.

“Our framework for POTUS to evaluate military shipments across the globe remains in effect and is integral to our America First defense priorities,” he said.

The Pentagon has not announced what weapons will be sent to Ukraine.

Trump announced the policy reversal on Monday, saying the Ukrainians “have to be able to defend themselves. They’re getting hit very hard now.”

Today at a Cabinet meeting, Trump was asked by a reporter who at the Pentagon ordered the weapons shipment be paused.

“I don’t know,” the president said. “Why don’t you tell me.”

Trump also said that U.S. peace negotiators are having a “lot of bullshit thrown at us” by Russian President Vladimir Putin.

“He’s very nice all the time, but it turns out to be meaningless,” Trump said.

The INSIDER daily digest -- July 8, 2025
By John Liang
July 8, 2025 at 2:10 PM

This Tuesday INSIDER Daily Digest has news on the fiscal year 2026 defense authorization bill along with the Pentagon's unfunded priorities lists.

We start off with coverage of the House Armed Services Committee's fiscal year 2026 defense authorization bill:

Draft defense bill backs FY-26 topline, adds SPEED Act, overhauls missile defense law

The House Armed Services Committee's fiscal year 2026 defense authorization bill supports the White House's funding request and, among numerous other provisions, includes the new bipartisan SPEED Act to reform the Pentagon acquisition system and ee-writes U.S. missile defense policy for the new Golden Dome program, according to an early draft of the bill obtained by Inside Defense.

Document: House 'chairman's mark' of the FY-26 defense policy bill

Related to the policy bill, here's coverage of the Pentagon wanting to codify the proposed Golden Dome missile defense system into law:

Pentagon proposes sweeping overhaul of U.S. missile defense policy in law

The Defense Department has submitted a legislative proposal to Congress that would upend more than two decades of U.S. missile defense policy, aligning it with the sweeping ambitions of President Trump's Golden Dome for America executive order issued earlier this year.

Document: DOD's FY-26 legislative proposals packages

We also have coverage of the Pentagon's unfunded priorities lists:

INDOPACOM sends Congress $12B unfunded priorities list

U.S. Indo-Pacific Command has sent Congress an unfunded priorities list totaling nearly $12 billion, a slight increase above the amount it identified for lawmakers last year, according to documents obtained by Inside Defense.

Navy identifies $7.4B in unfunded priorities, targeting munitions and sixth-gen fighter

The Navy has sent Congress a $7.4 billion unfunded priorities list, highlighting the service's continued need for munitions and future fighter aircraft development, according to documents obtained by Inside Defense.

Army submits $4.3B unfunded list to Congress

The Army has sent Congress a list of $4.3 billion in unfunded priorities, keying unmet needs for countering small drones, additional munitions procurement and industrial base investments, according to a memo obtained by Inside Defense.

Marine Corps highlights munitions and aircraft procurement in $2.8 billion unfunded priority list

The Marine Corps has submitted a $2.8 billion unfunded priorities list to Congress, featuring additional dollars for munitions procurement and for more CH-53K King Stallion helicopters and other aircraft among its top items.

National Guard Bureau submits $2.4B unfunded priorities list

The National Guard Bureau has submitted a $2.4 billion list of unfunded priorities to Congress, highlighted by increasing F-15 EX and F-35 aircraft in the Air National Guard.

NORTHCOM highlights AI investments for border security in unfunded list

U.S. Northern Command has sent Congress an unfunded priorities list totaling $35 million and highlighting unmet needs for artificial intelligence to reduce the manpower burden at the southern border, according to documents obtained by Inside Defense.

Documents: FY-26 unfunded priorities lists

Boing recently nabbed a multibillion-dollar satellite contract:

Boeing wins $2.8 billion for two NC3 satellites

Space Systems Command awarded Boeing $2.8 billion for the first two Evolved Strategic Satellite Communications space vehicles, which will enable modernized nuclear command, control and communications capabilities.

SDA names new deputy director
By Shelley K. Mesch
July 8, 2025 at 11:59 AM

The Space Development Agency named Gurpartap "GP" Sandhoo as deputy director today, following the departure of Ryan Frigm from the role.

Sandhoo is a veteran who has served more than 36 years with the Navy and Marine Corps in both active and reserve components. His resume also includes time as the deputy director at the Intelligence Advanced Research Projects Agency, the Heinlein Chair in Astronautics at the U.S. Naval Academy and head of the Spacecraft Engineering Division at the Naval Research Laboratory.

Before joining SDA as a senior adviser at the end of last year, Sandhoo worked at Quantum Space as vice president and chief architect and at Northrop Grumman as the director for emerging technologies.

Sandhoo becomes the young agency’s second deputy director after Frigm resigned his position last week.

“I’d like to thank Ryan for his immeasurable contributions and leadership over the last six years as we built the agency from the ground up and accelerated space acquisition strategies to get capabilities into the hands of warfighters at speed,” said SDA Director Derek Tournear. “We are pleased to have GP seamlessly move into the deputy director position where he will leverage his impeccable space acquisition credentials and experience during this crucial period as we prepare to launch the PWSA’s Tranche 1, the initial operational capability, later this summer.”

Frigm assisted with the standup of the agency in 2019, when it was under the Pentagon's research and engineering office, according to an SDA news release. He assisted with the transition of the agency into the Space Force, the launch of the first Proliferated Warfighter Space Architecture demonstration satellites and the program management of the first three operational tranches of PWSA.

Inside Defense obtains FY-26 unfunded priorities lists
By Tony Bertuca
July 8, 2025 at 9:48 AM

Inside Defense is obtaining the fiscal year 2026 unfunded priorities lists that the U.S. military is required by law to send Congress. Subscribers can access them below.

Watch Inside Defense for further reporting as additional UPLs are obtained.

Raytheon's Barracuda undergoes further testing
By Abby Shepherd
July 8, 2025 at 8:00 AM

Raytheon's Barracuda Mine Neutralization System has been tested in its first untethered, semi-autonomous operation, the company announced Tuesday.

In recent open water testing in Narragansett Bay, RI, the vehicle proved it can autonomously navigate, communicate, detect and identify targets, and operate independently underwater, according to a Raytheon news release.

“This recent testing demonstrates the significant strides we've made in advancing mine countermeasure technology,” Raytheon’s Naval Power President Barbara Borgonovi said in a statement. “Barracuda's capabilities will dramatically improve safety and efficiency for the U.S. Navy, keeping sailors out of harm's way while effectively addressing underwater threats.”

Last fall, the semi-autonomous system showed it could detect, track and hold position on a target independently -- the first time Barracuda demonstrated this ability. The vehicle used geo-homing and acoustic communications to transmit data back to a littoral combat ship.

The program is set to enter Low-Rate Initial Production by FY-28 according to an RTX spokesperson. Citing an ever-evolving DOD budget, the company is "on schedule with our requirements and are moving forward with our commitments," the spokesperson told Inside Defense.

IOC will be achieved by 2030, according to the company's news release. They are currently building contractor test assets and plan to build 85 units for the Navy to complete its own testing, Barracuda Program Manager Josh Navikonis told Inside Defense last October.

Planned FMTV A2 buys for next year reflect Army's airdrop capability focus
By Dominic Minadeo
July 7, 2025 at 5:08 PM

The Army plans on buying 80 airdroppable Family of Medium Tactical Vehicle variants next year, recent budget documents reveal, which comes less than a month after the service announced a $792 million contract extension for more parachuting trucks.

The service wants to buy 33 low velocity air drop (LVAD) Light MTVs for $32.9 million and 47 LVAD MTVs for $52.6 million in fiscal year 2026, according to budget justification documents the service posted last week. The variants are built to fit inside C-130s and drop “into remote areas where landing strips are not available,” according to the documents.

The contract modification, which adds a three-year extension to its FMTV A2 deal with contractor Oshkosh Defense, will fund additional orders for three different LVAD variants of FMTV A2. The Army tested the LVAD MTV cargo truck in FY-24 and the LVAD MTV dump truck and LVAD LMTV cargo truck between April and June of this year, Inside Defense previously reported.

“The FMTV A2 contract extension enables the Army to continue modernizing its fleet with proven medium tactical vehicles in support of the Army Transformation Initiative and Force Design 2030,” Pat Williams, chief programs officer at Oshkosh Defense, said in a statement.

“The FMTV A2 LVAD variants fill a critical capability gap for the Airborne community by replacing an aging fleet with an upgraded capability that can be rapidly deployed in contested and austere environments,” he went on.

The service first ordered the LVAD variant in February after handing Oshkosh $215 million for the new variant reflecting Army “modernization initiatives,” according to a press release at the time.

The Army planned on spending more on procurement of the FMTV fleet in FY-26 -- $128 million for 178 vehicles -- according to a future years defense program table included in last year’s budget documents.

But it had only planned to spend $133.9 million for 208 vehicles in FY-25, and instead Congress added $120 million to the FMTV line in funding tables advising Pentagon spending under the FY-25 yearlong continuing resolution, which resulted in the Army procuring 372 FMTVs that year.

It’s not clear how many vehicles the service plans on procuring in FY-27 and beyond, as the Pentagon has left FYDP tables blank in this year’s justification books.

The service recently put out a market survey seeking out industry interest in building armor protection kits for FMTVs and another surveying “sources capable of manufacturing the FMTV A2 and associated kits,” the latter solicitation of which anticipates a 10-year competitive contract starting in FY-28, according to the Army. Response dates for both are due July 31.

Work on the extended FMTV A2 contract modification is expected to finish up in February 2029, according to the Army.

Army wants to field 10,000 UAVs in a year at a cost of under $2,000 each
By Dan Schere
July 7, 2025 at 3:23 PM

Through a recent solicitation to industry, the Army has communicated an objective of fielding as many as 10,000 unmanned aerial vehicles within a year at a cost of less than $2,000 each.

The July 2 sources-sought notice states the Army’s aviation program executive office aims to deliver “an initial quantity of systems” by Sept. 30, with the ability to ramp up to as many as 10,000 over a 12-month period. The drones also must have the capability of being modified by soldiers with “a variety of third-party payloads, armaments and munitions without vendor involvement.”

The notice also states the systems may be “utilized as targets” during counter UAS training and other exercises.

In the last few years, the Army has placed a greater emphasis on investing in drone warfare, with officials closely observing conflicts in Ukraine and Russia. The recent Army Transformation Initiative, released in early May at the direction of Defense Secretary Pete Hegseth, focuses on divesting from legacy aviation platforms such as older Apache helicopters, and getting more UAS and counter-UAS capabilities into formations.

Additionally, Army Secretary Dan Driscoll and Chief of Staff Gen. Randy George have discussed in congressional testimony the need to more rapidly field low-cost drones.

The July 2 sources-sought notice also states the systems offered by industry must be repairable by soldiers in the field without the involvement of the vendor -- in line with the Army’s focus on expanding its “right to repair” equipment, which is another tenet of the transformation initiative.

“Soldier repair is needed to allow units to fully understand their equipment and stay in the fight while waiting for additional systems/spare components,” the notice states.

Responses to the notice are due by the close of business on July 18.

Trump sends two Pentagon research and engineering office nominations to Senate
By Theresa Maher
July 7, 2025 at 2:58 PM

President Trump last week sent nominations for the officials he hopes will fill two roles under Pentagon Chief Technology Officer Emil Michael's research and engineering office -- one a familiar face and another who could be the first Senate-confirmed person to hold the title.

The president tapped James Mazol, who served as acting under secretary of defense for research and engineering until Michael assumed the office in late May, to return to the Pentagon as Michael’s deputy.

President Trump also nominated James “Jim” Caggy of New York to serve as an “assistant secretary of defense (new position),” according to the July 1 announcement. A defense official confirmed to Inside Defense today that Caggy was nominated to serve as assistant defense secretary for mission capabilities.

The role is relatively new but was established in a July 2023 memo from then-Deputy Defense Secretary Kathleen Hicks. Thomas Browning, former director of the Defense Advanced Research Project Agency’s adaptive capabilities office, previously held the role in an acting capacity from July 2023 until January 2025.

If he gets the green light from the upper chamber, Caggy would be the first Senate-confirmed official to hold the role.