The Insider

Navy announces $536 million award for commercial dismantling of CVN-65
By Nick Wilson
June 2, 2025 at 4:23 PM

The Navy has selected a contractor to dismantle the retired aircraft carrier Enterprise (CVN-65), awarding a $536 million, first-of-its kind contract to NorthStar Maritime Dismantlement Services.

NorthStar is tasked with completely dismantling, recycling and disposing of the carrier in Mobile, AL, where the company has partnered with Modern American Recycling and Radiological Services. The work is expected to take four years, concluding by November 2029, according to the May 30 contract announcement.

“Under this contract CVN 65 will be dismantled in its entirety, and all resulting materials will be properly recycled or disposed of,” the notice states. “Specifically, hazardous materials, including low-level radioactive waste, will be packaged and safely transported for disposal at authorized licensed sites.”

Enterprise, which was commissioned in 1961 and deactivated in 2012, is the first nuclear-powered carrier to be disposed of by the Navy. Though there is precedent for dismantling nuclear-powered submarines, this work has been performed by the nation’s public shipyards and the Energy Department rather than a third-party contractor.

In a June 2 LinkedIn post, Naval Sea Systems Command called the move to contract NorthStar a “landmark step,” saying the use of a private partner will yield $1 billion in cost savings compared to performing the work in the public yards.

“This approach enables the Navy to prioritize public yard resources toward fleet readiness and modernization -- while upholding its longstanding commitment to environmental stewardship and nuclear safety,” the NAVSEA post continues.

Hegseth scheduled to appear before Congress
By Tony Bertuca
June 2, 2025 at 3:22 PM

(Editor's note: This story has been updated with new date information.)

Defense Secretary Pete Hegseth is slated to appear before the House Armed Services Committee the week of June 12.

The committee would not confirm that Hegseth would testify that week but a government official said it would be the week of June 12, possibly that day.

The official also said Hegseth would appear before the Senate Armed Services Committee the week of June 17 (possibly on June 18), though the committee did not respond to a request to confirm.

Hegseth is meant to appear to discuss the fiscal year 2026 defense budget request, though it has yet to be submitted to Congress.

A “skinny budget” was released last month highlighting topline amounts, with DOD requesting the same budget that Congress enacted for FY-25 but planning for a $120 billion increase by relying on separate budget reconciliation legislation -- the “Big Beautiful Bill” -- that has not yet passed and is running into opposition.

Several senior GOP lawmakers, including both chairmen of the House and Senate Armed Services committees, have voiced disproval over the Trump administration’s FY-26 approach and have said they will seek to increase defense spending through regular appropriations legislation.

It is unclear if the budget request will be released by the time Hegseth appears before Congress, but the House Appropriations Committee has scheduled a hearing for June 13 to begin marking up its version of the FY-26 defense spending bill.

Meanwhile, congressional Democrats, who are frequent critics of Hegseth, are likely to question the defense secretary about his role in the “Signalgate” controversy as well as the previous chaos surrounding his team of advisers.

Lawmakers are also likely to question Hegseth about his decision to slash civilian jobs, including at the office of the director of operational test and evaluation, which provides independent performance reviews to Congress of the Pentagon largest weapon systems.

The INSIDER daily digest -- June 2, 2025
By John Liang
June 2, 2025 at 1:52 PM

This Monday INSIDER Daily Digest has news on Navy shipyards, the Army's recent Arcane Thunder drill, the Air Force's upcoming REFORPAC exercise and more.

The Navy's top civilian wants to accelerate environmental reviews and other regulatory requirements that might be needed to establish a new shipyard:

SECNAV: Navy analyzing need for additional shipyards

The Navy is weighing the merits of establishing new shipyards as it works to accelerate warship production and maintenance, Navy Secretary John Phelan said today at the Special Competitive Studies Project AI Expo in Washington.

Arcane Thunder, which took place between May 11 and 27, involved more than 300 U.S. Army personnel and soldiers from three other countries testing and "validating" the service’s advanced multidomain capabilities:

Army made 'breakthrough' with live data in recent exercise, commander says

U.S. soldiers who participated in the recent Arcane Thunder multinational exercise this month made a "breakthrough" in their ability to rapidly transmit and utilize data on the battlefield, according to a senior Army official.

Operations planned for the upcoming REFORPAC exercise will happen across the entire U.S. Indo-Pacific Command area of responsibility, but a majority will take place in Hawaii and Guam:

Air Force’s REFORPAC exercise to kickoff early July

REFORPAC, the Air Force’s largest multicombatant command exercise set for the Indo-Pacific will begin on July 10 and last roughly through the first week of August, a service spokesperson confirmed to Inside Defense.

ThayerMahan’s Outpost, an unmanned mobile acoustic surveillance system, has drawn support from the Office of the Secretary of Defense after the Navy opted not to fund the effort in its FY-25 request:

All eyes on FY-26 as Pentagon pushes forward with uncrewed acoustic network

The future of a promising new undersea surveillance platform -- designed to blanket the ocean with small, unmanned acoustic nodes -- could hinge on the Navy's fiscal year 2026 budget request.

The Marine Corps' light armored vehicle program office is seeking kinetic or non-kinetic counter-UAS systems capable of operating in contested electromagnetic environments and taking down group 1 and 2 drones:

Marine Corps seeking C-UAS upgrade for Light Armored Vehicles

The Marine Corps is seeking industry input on vehicle-mounted, counter-drone systems to defend its legacy family of Light Armored Vehicles from small, unmanned aircraft systems, according to a recent request for information.

Lockheed secures additional $1 billion CPS award
By Nick Wilson
June 2, 2025 at 9:37 AM

Lockheed Martin has received a contract modification worth as much as $1 billion for continued work on Conventional Prompt Strike, the developing hypersonic missile system expected to arm the Navy's Zumwalt-class destroyers and later its Virginia-class submarines.

According to a May 30 contract announcement, the award will fund “program management, engineering development, systems integration, long lead material, and special tooling and equipment in support of missile and launching platform production.”

An initial $140 million distributed under this latest award will come from the Army’s research and development accounts, the notice states.

In addition to the Navy’s sea-based application, the Army plans to field a ground-launched hypersonic capability dubbed Dark Eagle. The hypersonic weapon system is being developed collaboratively by the two service branches.

The Navy’s CPS efforts have faced challenges, with the service’s fiscal year 2025 budget postponing CPS-aboard-Zumwalt fielding and delaying planned purchases of CPS rounds.

In November, Navy officials said CPS testing is now scheduled to begin aboard the guided missile destroyer Zumwalt (DDG-1000) in 2027 or 2028 after issues with the ongoing land-based testing of the weapon system delayed the original fielding timeline.

Zumwalt is now back in the water after receiving modifications enabling the ship to host the weapon system, according to a December announcement from HII, which performed these modifications at its Ingalls Shipyard in Pascagoula, MS.

Once Zumwalt’s system is operational, CPS will become the nation’s first sea-based hypersonic weapon system, providing an ultra-fast, precision strike capability previously described by officials as a “conventional weapon with strategic implications.”

Work under the latest award is expected to conclude by Aug. 31, 2028.

The week ahead
By Tony Bertuca
June 2, 2025 at 5:00 AM

Senior defense officials are scheduled to appear at several events this week, including congressional hearings.

Monday

The Special Competitive Studies Project hosts its AI+ Expo.

Tuesday

The Center for a New American Security hosts its 2025 National Security Conference.

Wednesday

The House Armed Services Committee holds a hearing on the Army.

The House Armed Services seapower and projection forces subcommittee holds a hearing on Navy programs.

The Senate Appropriations defense subcommittee holds a hearing on the National Nuclear Security Administration.

The Center for Strategic and International Studies hosts a discussion on the Golden Dome program.

Thursday

The House Armed Services Committee holds a hearing on the Air Force.

The Senate Armed Services Committee holds a hearing on the Army.

The Center for Strategic and International Studies hosts a discussion on strategic land power.

The Atlantic Council hosts a discussion on U.S. Air Force Global Strike Command.

White House releases key FY-26 budget document
By Tony Bertuca
May 30, 2025 at 5:46 PM

The White House Office of Management and Budget has released an appendix for the fiscal year 2026 budget request, highlighting topline investments in defense spending accounts, though additional information is expected in June.

The 1,224-page document is more detailed than the White House’s “skinny” budget, which was released earlier this month showing topline spending information.

The appendix notes that for the Department of Defense, “this document contains only appropriations language,” while a “separate document containing budget estimates for the Department of Defense will be published in June 2025.”

The document comes as House appropriators are preparing to mark their FY-26 spending bills next week, with defense slated for June 13.

Watch Inside Defense for further reporting.

The INSIDER daily digest -- May 30, 2025
By John Liang
May 30, 2025 at 2:41 PM

This Friday INSIDER Daily Digest has news on the Marine Corps seeking industry input on vehicle-mounted, counter-drone systems to defend its legacy family of Light Armored Vehicles, plus the upcoming launch of the Space Force's GPS III satellite and more.

The Marine Corps' light armored vehicle program office is seeking kinetic or non-kinetic counter-UAS systems capable of operating in contested electromagnetic environments and taking down group 1 and 2 drones:

Marine Corps seeking C-UAS upgrade for Light Armored Vehicles

The Marine Corps is seeking industry input on vehicle-mounted, counter-drone systems to defend its legacy family of Light Armored Vehicles from small, unmanned aircraft systems, according to a recent request for information.

Some news on the next launch of the Space Force's GPS III satellite:

Space Force prepares 'rapid-response' launch of GPS III sat, awards $510M for 2 GPS IIIF sats

The Space Force will launch the next satellite in its GPS III mission on Friday under a "rapid-response" timeline, going from storage to launch in just three months.

The CEOs of Boeing and HII spoke this week at Bernstein's Annual Strategic Decisions Conference:

Boeing invested more in F-47 than it ever had on a defense program

Boeing put more dollars into its bid for the F-47 Next-Generation Air Dominance fighter jet than it has on any past defense contract, according to CEO Kelly Ortberg.

HII in communication with White House shipbuilding office, DOGE, amid recent upheavals

Amid a "reorganization" of the White House shipbuilding office -- following Michael Waltz's abrupt departure as head of the National Security Council -- shipbuilder HII is maintaining a steady relationship with the group and interacting with its members regularly, according to CEO Chris Kastner.

A new Government Accountability Office report "addresses (1) steps the Air Force and other decision-makers took between May 2022 and July 2023 to identify the permanent headquarters location, (2) the extent to which the Air Force basing reevaluation process incorporated relevant [analysis of alternatives] best practices, and (3) the status of U.S. Space Command headquarters as of fall 2024":

GAO: Air Force analysis pointed to permanent SPACECOM HQ in Alabama

Multiple Air Force analyses pointed to Redstone Arsenal, AL as the preferred location to meet U.S. Space Command needs, GAO confirmed in a report released today, but the Biden administration still decided to maintain the current location in Colorado Springs, CO.

Document: GAO report on SPACECOM HQ

Anduril partnering with Meta on bid for future IVAS variant
By Dan Schere
May 30, 2025 at 10:47 AM

Anduril is teaming up with Meta, the owner of Facebook and other social media platforms, on a bid for the Army's next planned variant of the Integrated Visual Augmentation System.

The original $22 billion IVAS contract was awarded to Microsoft in 2021, but Anduril announced earlier this year that it was partnering with Microsoft and would be taking over production on that existing contract as well as future development of hardware and software. That contract covers IVAS 1.2, which is the most recent variant of the night vision system.

Separately, Anduril announced it would be submitting a bid for the next variant of the system, Soldier Borne Mission Command, which the Army had previously called IVAS Next. The Army held an industry day on Soldier Borne Mission Command in February and plans to make up to two awards “on a best-value, tradeoff basis,” according to a request for information released in March.

Anduril announced in a press release Thursday that it had jointly submitted a white paper with Meta for SBMC Next.

Since Anduril took the lead on the original IVAS contract awarded to Microsoft, Anduril stated it has “made significant progress” in transitioning the system “from concept to demonstrated, soldier-tested capability, streamlining operations, accelerating delivery timelines and reducing costs.”

“Software updates that used to take 180 days now reach the field in under 18 hours, and Lattice-integrated IVAS headsets are in testing now,” the company stated, referring to its software platform.

Anduril’s partnership with Meta on Soldier Borne Mission Command was part of a larger announcement in which the two companies stated they will be partnering to design and build extended reality products for the military. Private capital is being used to fund the effort, and it will “draw on more than a decade of investment by both companies in advanced hardware, software and artificial intelligence.”

The INSIDER daily digest -- May 29, 2025
By John Liang
May 29, 2025 at 2:38 PM

This Thursday INSIDER Daily Digest has news on the Defense Department issuing a slew of memos regarding major reforms and restructurings, along with defense contractor CEOs speaking at an industry conference and more.

The Pentagon issued a slew of memos this week targeting departmental reforms and restructurings:

Hegseth orders major restructuring of DOD’s independent weapons testing office

Defense Secretary Pete Hegseth has directed the downsizing and reorganization of the independent office that oversees Pentagon weapons testing, according to a new memo released this week.

Document: Hegseth memo on DOT&E reorganization


Hegseth targets IT and management consultants in new in-sourcing memo

Defense Secretary Pete Hegseth is cutting and restricting the number of information technology and management consultants at the Pentagon, saying the "Department of Government Efficiency" has identified $5 billion in savings that can be realized from terminating contracts for such services, according to a memo.

Document: Hegseth memo on DOGE cost efficiency initiative implementation


DOGE given the power to review most DOD contracts

Defense Secretary Pete Hegseth has empowered cost-cutters at the "Department of Government Efficiency" to review all of the Pentagon's unclassified contracts, minus a few exemptions, according to a new memo released this week.

Document: DOD contract guidance for DOGE cost efficiency initiative

The top executives from major defense contractors spoke this week at Bernstein’s Annual Strategic Decisions Conference:

Boeing invested more in F-47 than it ever had on a defense program

Boeing put more dollars into its bid for the F-47 Next-Generation Air Dominance fighter jet than it has on any past defense contract, according to CEO Kelly Ortberg.

HII in communication with White House shipbuilding office, DOGE, amid recent upheavals

Amid a "reorganization" of the White House shipbuilding office -- following Michael Waltz's abrupt departure as head of the National Security Council -- shipbuilder HII is maintaining a steady relationship with the group and interacting with its members regularly, according to CEO Chris Kastner.

Lockheed CEO: F-35 upgrade could include 'optionally manned' autonomy

Lockheed Martin is eyeing "optionally manned" autonomy for the F-35 Joint Strike Fighter as part of its proposed "fifth-generation-plus" capability improvement offerings, according to CEO Jim Taiclet.

A new Government Accountability Office report "addresses (1) steps the Air Force and other decision-makers took between May 2022 and July 2023 to identify the permanent headquarters location, (2) the extent to which the Air Force basing reevaluation process incorporated relevant [analysis of alternatives] best practices, and (3) the status of U.S. Space Command headquarters as of fall 2024":

GAO: Air Force analysis pointed to permanent SPACECOM HQ in Alabama

Multiple Air Force analyses pointed to Redstone Arsenal, AL as the preferred location to meet U.S. Space Command needs, GAO confirmed in a report released today, but the Biden administration still decided to maintain the current location in Colorado Springs, CO.

Document: GAO report on SPACECOM HQ

Army will hold industry day next month on soft kill APS
By Dan Schere
May 29, 2025 at 1:39 PM

The Army will hold an industry day June 11 at Detroit Arsenal, MI to brief vendors on the requirements for soft kill active protection systems, according to a notice posted today.

Soft kill APS protect ground combat vehicles from antiarmor munitions by detecting, countering and engaging threats. Soft kill systems use jamming and interference to prevent projectiles from striking their targets, whereas hard kill systems use counter projectiles to destroy the threats.

The soft kill APS system must be “modular, safety compliant and expandable using open standards,” according to the Army. It must also be modular enough to easily integrate future sensor and counter measure solutions.

Following the industry day, the Army may pursue a follow-on prototype project that could result in the award of a contract or transaction “without the use of competitive procedures.”

The Army previously sought information in 2023 about soft kill electronic warfare systems to protect tactical vehicles, and congressional authorizers inquired last year about how the Army can field APS that make combat vehicles more survivable.

The INSIDER daily digest -- May 28, 2025
By John Liang
May 28, 2025 at 2:38 PM

This Wednesday INSIDER Daily Digest has news on the Pentagon's efforts to comply with a White House executive order on buying commercial items when available, plus the Army being tapped to build a nuclear reactor and more.

In a new memo, Principal Director for Defense Policy, Contracting and Acquisition Policy John Tenaglia provides implementation guidance for the White House executive order on "Ensuring Commercial, Cost-Effective Solutions in Federal Contracts":

DOD to 'redouble' efforts to favor commercial procurements

The Defense Department is working in compliance with a White House executive order to ensure it doesn't default to procuring expensive, custom-made systems and services when commercially available items can be found, according to a new Pentagon memo.

Document: DOD memo on ensuring commercial, cost-effective solutions in federal contracts

A new Government Accountability Office report finds that while the Defense Department has made structural and organizational progress in launching the Guam Defense System, it still lacks the most basic building blocks needed to sustain the project:

Guam missile defense architecture overhauled in early January, GAO reveals

The Biden administration's Pentagon leadership directed significant changes to the architecture of the multibillion-dollar missile defense system for Guam in the final days of its term, according to a newly released Government Accountability Office report.

Document: GAO report on Guam BMD

A new White House executive order has designated the Army as the lead on installation and operational nuclear energy across the Defense Department:

New EO directs Army to build domestic nuclear energy reactor

The White House is directing the Army to build a nuclear reactor at a domestic military base or installation within the next three years, according to an executive order published Friday.

Inside Defense recently got a chance to tour startup company JetZero's facility in California:

JetZero's blended wing body peels back curtain on Air Force's NGAS vision

LONG BEACH, CA -- When JetZero executive Nate Metzler thinks about his company's offer for the Air Force's future fleet of refueling platforms, he imagines a giant manta ray gliding through the air.

General Atomics' unmanned aerial vehicle, the MQ-9B SeaGuardian will be paired with Ultra Maritime's small form factor sonobuoys to boost anti-submarine warfare in GPS-denied environments:

Ultra Maritime, General Atomics partner to advance 'new era' of anti-submarine warfare

General Atomics Aeronautical Systems and Ultra Maritime have partnered to further airborne detection and tracking of enemy submarines, according to a news release.

DOD seeks to reduce the costs of moving military families
By Tony Bertuca
May 28, 2025 at 2:03 PM

The Defense Department, which spends about $5 billion annually moving U.S. troops and their families between various military assignments around the world, is looking to cut those costs in the coming years by keeping people in place for longer periods.

“As we look across the Department for efficiencies, the Military Departments must determine which PCS moves are most critical to support operational requirements and key professional development,” according to a new memo from Jules Hurst, who is performing the duties of under secretary of defense for personnel and readiness.

“Lower-priority PCS moves should be reduced for Service members and their families seeking greater geographic stability,” Hurst continued.

The memo directs the department to develop a strategy to reduce “discretionary” permanent change of station travel budgets by 10% by fiscal year 2027, 30% by FY-28, 40% by FY-29 and 50% by FY-30.

The memo notes that the frequency of PCS moves, while they can support mission requirements, can often reduce the quality of life for servicemembers and their families, “harm spousal employment and disrupt functional communities, unit cohesion and long-term talent management.”

The cuts to discretionary PCS travel come amid a broader DOD effort -- in coordination with the “Department of Government Efficiency” -- to cut costs.

The department has targeted a reduction of 5% to 8% of the total civilian workforce and is also working to “rebalance and optimize” its organizational structure.

DIU seeking dual-use tech startups with roots in academia to address DOD mission needs
By Theresa Maher
May 28, 2025 at 1:41 PM

The Defense Innovation Unit is seeking submissions for U.S.-owned and operated startups with roots in academia to participate in a 12-week accelerator program preparing them for engagement with the Pentagon's acquisition ecosystem, according to a newly released solicitation from the military's innovation arm.

Early-stage companies originating from U.S. universities often face challenges maturing their solutions from Technology Readiness Levels 2 through 4 and navigating the Defense Department’s adoption paths, warranting a “more effective pathway to identify, support and accelerate” such innovations, DIU said.

Through funding, mentorship and access to DOD and private sector resources, DIU’s University Defense Accelerator Prize challenge “aims to advance technological maturity and enable viable go-to-government strategies for high-impact national security solutions,” the solicitation said.

Focus areas for aspiring participants should include alignment with DIU portfolio capability priorities including energy, autonomy, artificial intelligence, electronic warfare, additive manufacturing, hypersonics, human systems and space, DIU said.

Technological capabilities should also be scalable, cost-effective and demonstrate potential operational impact.

A team of subject matter experts will select up to 15 finalists, who will participate in the accelerator program scheduled to begin in August.

Finalists will also receive a portion of $500,000 in prize awards and eligibility for follow-on opportunities like Small Business Innovation Research grants, Other Transaction Agreements, contracts and Cooperative Research and Development Agreements, DIU said.

The solicitation closes June 25, and finalists are expected to be announced July 25.

Navy removes head of PEO USC citing naval inspector general investigation
By Nick Wilson
May 27, 2025 at 5:05 PM

Rear Adm. Kevin Smith has been relieved from his post as the Navy's program executive officer for unmanned and small combatants following "a complaint substantiated by an Office of the Naval Inspector General investigation," the service announced today.

Smith has been temporarily reassigned to the staff of Naval Sea Systems Command, while PEO USC Executive Director Melissa Kirkendall has assumed temporary responsibilities of the office in his absence, the notice states.

PEO USC is responsible for the development and acquisition of a wide variety of Navy programs including surface ships like the Constellation-class frigate, Littoral Combat Ships and the majority of the service’s uncrewed surface and undersea platforms.

Smith, who had lead PEO USC since June 2023, was relieved by Brett Seidle, the acting assistant Navy secretary for research, development and acquisition.

The announcement provides no further explanation for Smith’s removal but states, “the Navy maintains the highest standards for leaders and holds them accountable when those standards are not met.”

Inside Defense has requested additional information from the Navy.

The INSIDER daily digest -- May 27, 2025
By John Liang
May 27, 2025 at 1:47 PM

This post-Memorial Day INSIDER Daily Digest has news on startup company JetZero's idea for the Air Force's future fleet of refueling platforms, plus Guam missile defense and more.

Inside Defense recently got a chance to tour startup company JetZero's facility in California:

JetZero's blended wing body peels back curtain on Air Force's NGAS vision

LONG BEACH, CA -- When JetZero executive Nate Metzler thinks about his company's offer for the Air Force's future fleet of refueling platforms, he imagines a giant manta ray gliding through the air.

A new Government Accountability Office report finds that while the Defense Department has made structural and organizational progress in launching the Guam Defense System, it still lacks the most basic building blocks needed to sustain the project: a fully defined strategy, a clear chain of responsibility and an accurate count of troops who will be stationed on the island to operate the system:

Guam missile defense architecture overhauled in early January, GAO reveals

The Biden administration's Pentagon leadership directed significant changes to the architecture of the multibillion-dollar missile defense system for Guam in the final days of its term, according to a newly released Government Accountability Office report.

More on that GAO report:

Missile shield for Guam faces organizational gaps, GAO warns in damning report

The Pentagon's ambitious plan to ring Guam with a state-of-the-art missile defense system is running into fundamental obstacles that could delay or disrupt the project's completion, according to a new Government Accountability Office report.

Document: GAO report on Guam BMD

A new White House executive order has designated the Army as the lead on installation and operational nuclear energy across the Defense Department:

New EO directs Army to build domestic nuclear energy reactor

The White House is directing the Army to build a nuclear reactor at a domestic military base or installation within the next three years, according to an executive order published Friday.

General Atomics' unmanned aerial vehicle, the MQ-9B SeaGuardian -- a next generation variant of the MQ-9 Reaper -- will be paired with Ultra Maritime’s small form factor sonobuoys to boost anti-submarine warfare in GPS-denied environments:

Ultra Maritime, General Atomics partner to advance 'new era' of anti-submarine warfare

General Atomics Aeronautical Systems and Ultra Maritime have partnered to further airborne detection and tracking of enemy submarines, according to a news release this week.