The Insider

Carter cancels speech targeting Congress
By Tony Bertuca
September 12, 2016 at 4:58 PM

Defense Secretary Ash Carter has canceled a planned Thursday speech at the National Press Club that would have targeted Congress and an array of reforms proposed in the fiscal year 2017 defense authorization bill.

The speech, titled "Dulling the Edge: How Congress Risks Undermining the Finest Fighting Force the World Has Ever Known," was meant to give Carter a forum to weigh in more fully on the defense authorization bill, which he has already criticized for micromanagement.

The NPC announced the cancellation via a message on Twitter:

The speech "was rescheduled due to schedule conflicts," according to an email from Capt. Jeff Davis, a Pentagon spokesman. "He will be back in town Wednesday night and meeting with the Japanese [defense minister] on Thursday."

The decision to cancel the speech comes amid controversy caused by a leaked internal Pentagon memo obtained by Politico that advises defense officials to play "hardball" with Republican lawmakers who are trying to increase defense spending beyond what was authorized by the 2015 Bipartisan Budget Agreement.

Carter, who spoke to reporters last week, sought to portray his relationship with Congress as positive and respectful.

"I have an excellent relationship with my colleagues on the Hill," he told reporters on a flight en route to London. "This is a relationship of great respect. Where I have differences with them in the matter of this budget, that's no secret. There's nothing partisan about that."

Meanwhile, Carter is scheduled to leave this evening for a trip to San Francisco, CA, and Austin, TX, focused on engaging the technology sector in the Pentagon's weapons development efforts.

Air Force asks Boeing for presidential aircraft replacement EMD proposal
By John Liang
September 12, 2016 at 4:43 PM

The Air Force has officially requested a proposal from Boeing to complete engineering and manufacturing development work on the service's effort to replace the current Air Force One aircraft.

"The request acts upon the authorization received from Frank Kendall, the under secretary of defense for acquisition, technology and logistics, continuing a deliberate step-by-step approach to reduce program and cost risk," a Sept. 12 Air Force statement reads, adding: "By releasing the RFP now, Boeing will be able to apply the results of the ongoing risk reduction activities to the proposal for the contract modification, which will be the preponderance of the acquisition program."

The Presidential Aircraft Replacement program seeks to buy two modified commercial 747-8 jumbo jets from Boeing, with a third aircraft under consideration.

"This is a significant step forward for this program, which emphasizes cost control and risk reduction, in balance with system performance, to meet the requirements of the presidential mission," said PAR Program Manager Col. Amy McCain said in the statement. "We are committed to providing the (Executive) Office of the President of the United States with safe, reliable air transportation that provides high levels of security and communication capability."

The modifications to the 747-8 will include electrical power upgrades, a mission communication system, a medical facility, executive interior, a self-defense system and autonomous ground operations capabilities, according to the service.

Kendall approved the acquisition strategy to replace Air Force One on Sept. 4, 2015.

The INSIDER daily digest -- Sept. 12, 2016
By John Liang
September 12, 2016 at 3:05 PM

Coverage of a new CSIS report on the 'Big 5' defense contractors leads off this Monday INSIDER Daily Digest.

Some big defense business news:

New data shows 'Big 5' defense contractors have lost significant R&D market share

The largest defense contractors, known as the "Big 5," have seen an unprecedented loss of market share in research and development contracts since 2009 as the Pentagon has significantly cut its pipeline of new weapons programs amid budgetary stress, according to a new report from the Center for Strategic and International Studies.

(Want more defense business news? Check out our Notification Center, where you can sign up to receive email alerts whenever a related story is posted.)

Inside Defense has learned that several new Selected Acquisition Reports have been submitted to Congress:

DOD expands big-ticket roster by four programs, reports schedule changes for three

The Defense Department last month tweaked its $1.6 trillion roster of big-ticket weapon system projects by adding four new programs and formally advising Congress of schedule changes for three high-profile projects.

The Defense Department recently responded to a GAO report on military readiness:

DOD defining 'ready for what' as services tackle readiness recovery

The Defense Department is working to establish a basis for readiness recovery objectives for the services, according to a letter from the Pentagon to the Government Accountability Office.

Document: GAO report on military readiness

An early look at the Navy's approach for developing the Large Diameter Unmanned Underwater Vehicle program:

Navy to use phased rapid prototyping approach for LDUUV

The Navy plans to use a two-phased rapid prototyping approach for the Large Diameter Unmanned Underwater Vehicle program beginning with delivery of two prototypes in fiscal year 2019 under the terms of the program's restructuring.

The Marine Corps will be finishing up its Joint Strike Fighter "B" variant testing this coming autumn:

Marine Corps looks to close out F-35B test points this fall

This fall the Marine Corps is looking to close out its test points for the Joint Strike Fighter amphibious assault ship at-sea system development and demonstration phase, according to an official.

HII predicts completing CVN-79 with fewer man hours than previous in-class ships
By Lee Hudson
September 12, 2016 at 2:23 PM

Huntington Ingalls Industries' Newport News Shipbuilding division anticipates building the aircraft carrier John F. Kennedy (CVN-79) with fewer man hours than the previous ship in its class.

For example, the Kennedy is on track to be completed with 445 "lifts" into a drydock, which is 51 fewer than the Gerald R. Ford (CVN-78) and 149 less than the George H.W. Bush (CVN-77), according to a company statement.

"Fewer lifts to the dock means we're building larger superlifts with more outfitting installed prior to erecting the section in the dock," Mike Butler, Newport News' Kennedy construction program director, said in the same Sept.12 statement.

Recently, the company placed a 900-ton superlift into dry dock.

"We continue to focus on reducing cost, and we are pleased with our progress," Mike Shawcross, Newport News' vice president of CVN-79 carrier construction said in a statement. "The incorporation of lessons learned from CVN-78 on to CVN-79 -- and major build strategy changes to construct the ship a different way -- are having a significant impact on our construction efficiencies, just as we anticipated they would."

CNO: Navy is simplifying Littoral Combat Ship program
By Justin Doubleday
September 12, 2016 at 12:38 PM

The new changes to Littoral Combat Ship operations will simplify the much maligned program and potentially even make the ships more useful, according to Chief of Naval Operations Adm. John Richardson.

“We're finding ways to simplify, I suppose, the Littoral Combat Ship program, that would allow us to at least achieve the aims of the program, maybe even improve on its usefulness, while we simplify the program as well,” Richardson said when asked about the changes at a Sept. 12 think tank event in Washington.

The sweeping changes are a result of a review directed by Richardson in February. They include a change to a “Blue/Gold” crewing model, a move away from exchangeable mission packages to a “one ship, one mission” construct, and a push to have ship crews conducting more maintenance, rather than relying on contractors.

A transcript of Richardson's full response is below:

“As with any new class of ship, the Littoral Combat Ship being one of the recent ones, you have this sort of vision for how the class will be conceptualized and built and deployed and how it will perform. And then you have the reality of how it comes to life. I think that the only mistake you can make is to be slavishly focused on your original vision, and the data from the actual deployments could teach you something.

As we deploy that ship, we're learning lessons in just about every area. The engineering, we've learned a lot about the engineering of the ship, and Adm. [Thomas] Moore, the head of Naval Sea Systems command, is responding to those with his team of engineers. We're learning lessons from a personnel standpoint and the crewing type of a rotation, and Adm. [Thomas] Rowden, as the head of the surface force, is responding to those. We're looking for continuing always to learn to see how we can get more usefulness out of this class of ship, whether that's a different form of deployment model.

And then everywhere we can in the Navy, we're really advocating for the simplest possible structure that will get the job done. So we're finding to simplify, I suppose, the Littoral Combat Ship program, that would allow us to at least achieve the aims of the program, maybe even improve on its usefulness, while we simplify the program as well. So we're really just adjusting to the data that we get, learning as we go forward and we think that in the end, we hope to have not only a more capable Littoral Combat Ship contributing to the larger fleet, but also a simpler concept to operating it.”

Air Force certifies F-35As produced in FY-18 will have full operational capability
By Courtney Albon
September 12, 2016 at 11:46 AM

The Air Force last week certified to Congress that F-35As delivered in fiscal year 2018 will have full combat capability -- to include Block 3F software and weapons carriage.

The service confirmed in a Sept. 9 statement that Air Force Secretary Deborah Lee James had certified the program will meet its current plan to deliver fully combat-ready aircraft in FY-18 -- a validation required by the FY-16 National Defense Authorization Act.

"The Secretary of the Air Force considered program status, planning and program risks and was informed by the F-35 Joint Program Office's plan to complete F-35 development as reviewed by Air Force functional experts, Air Combat Command, and an independent review team," according to the statement.

The FY-16 provision limited procurement to no more than $4.3 billion until the certification was completed.

The Air Force declared initial operational capability for the F-35A in August, following a similar declaration from the Marine Corps last summer. The F-35 joint program office is currently in extended negotiations for low-rate initial production lots 9 and 10.

The week ahead
By John Liang
September 12, 2016 at 11:44 AM

The SECDEF travels to Silicon Valley this week, and a number of senior DOD officials testify on Capitol Hill.

Monday

Michele Flournoy, head of the Center for a New American Security and former under secretary of defense for policy, speaks at a U.S. Institute for Peace event on "U.S. Leadership and the Challenge of 'State Fragility.'"

Tuesday

Defense Secretary Ash Carter travels to San Francisco for an innovation conference.

U.S. Cyber Command chief Adm. Michael Rogers and others speak at a Center for Strategic and International Studies event on "The National Security Division at 10."

The Senate Armed Services Committee holds a hearing on "Encryption and Cyber Matters" featuring the testimony of Under Secretary of Defense for Intelligence Marcel Lettre and CYBERCOM chief Adm. Michael Rogers.

Sen. Angus King (I-ME) speaks at an NDIA breakfast.

Wednesday

Carter is scheduled to speak at the National Press Club about congressional proposals for Pentagon reform in the fiscal year 2017 defense authorization bill.

Under Secretary of Defense for Intelligence Marcel Lettre speaks at the Atlantic Council on "The Role of Transparency in Strengthening Defense Intelligence."

Defense Procurement and Acquisitionn Policy Director Claire Grady speaks at the Professional Services Council.

Thursday

The Senate Armed Services Committee holds a hearing on "Long-term Budgetary Challenges Facing the Military Services and Innovative Solutions for Maintaining our Military Superiority," featuring the testimony of the service chiefs from the Army, Navy, Air Force and Marine Corps.

Assistant Secretary of Defense for Research and Engineering Stephen Welby speaks at a CSIS event on "Research & Development Across the Defense Enterprise."

Bonhomme Richard ESG prepares for upcoming deployment
By Lee Hudson
September 12, 2016 at 10:32 AM

The Bonhomme Richard Expeditionary Strike Group, compose of Amphibious Squadron-11 and the 31st Marine Expeditionary Unit, recently completed a three-week integration and certification period before the team deploys.

After completing amphibious integration training and the final certification exercise, the 31st MEU is prepared to conduct amphibious, security, noncombatant evacuation, humanitarian assistance and special operations, according to a Marine Corps statement.

"The 31 MEU, which departed White Beach Naval Base Okinawa, Japan, on Aug. 21, is currently embarked aboard the amphibious assault ship USS Bonhomme Richard (LHD-6), the amphibious transport dock ship USS Green Bay (LPD-20), and the amphibious dock landing ship USS Germantown (LSD-42)," the statement reads.

Inside the Navy highlights
By Lee Hudson
September 12, 2016 at 10:00 AM

Some must-reads from this week's issue of Inside the Navy:

1. The Navy plans to use a two-phased rapid prototyping approach for the Large Diameter Unmanned Underwater Vehicle program beginning with delivery of two prototypes in fiscal year 2019 under the terms of the program's restructuring.

Full story: Navy to use phased rapid prototyping approach for LDUUV

2. The Navy has introduced sweeping changes to the way it will operate its 28 baseline Littoral Combat Ships moving forward, including a decision to separate where the two different variants of the ship are based.

Full story: Navy introduces major changes to Littoral Combat Ship operations

3. The Navy's International Programs Office is working with NATO headquarters to facilitate potential sales of the V-22 Osprey tiltrotor aircraft to European allies.

Full story: Navy pushing for foreign V-22 sales in Europe

Inside the Army highlights
By Courtney McBride
September 12, 2016 at 9:57 AM

Some must-reads from this week's edition of Inside the Army:

1. The Defense Department is working to establish a basis for readiness recovery objectives for the services, according to a letter from the Pentagon to the Government Accountability Office.

Full story: DOD defining 'ready for what' as services tackle readiness recovery

2. Although there are no concrete plans to sell Army equipment through a Defense Department effort aimed at improving foreign military sales, the service might focus on selling "Big 5" items in the future, an Army official said at a Sept. 7 conference.

Full story: Army would consider 'Big 5' for DSCA foreign military sales program

3. The Pentagon's inspector general is conducting an audit of the Army's management of its program to counter infrared-guided missile threats to its rotorcraft, currently in the engineering manufacturing development phase.

Full story: DOD IG launches audit of Army's CIRCM procurement

4. As lawmakers return to Washington, a new report from the Congressional Research Service tackles the ongoing dispute over Army end strength.

Full story: Congressional report addresses Army end-strength debate

Hyten nominated to take command of STRATCOM
By John Liang
September 9, 2016 at 3:28 PM

President Obama has nominated Gen. John Hyten, the head of Air Force Space Command, to become the next chief of U.S. Strategic Command.

If confirmed by the Senate, Hyten would replace the retiring Adm. Cecil Haney.

Defense Secretary Ash Carter, who is traveling home from a trip to the U.K. and Norway, issued a statement congratulating Hyten on his nomination:

I've known and worked closely with Gen. Hyten for several years, and over the course of his three-and-a-half decades in the Air Force, he has been a model for generations of men and women in uniform. And he's done so in a wide range of roles: from commanding airmen at the squadron, group, wing, and major command levels, to leveraging America's space assets in support of troops fighting in Iraq and Afghanistan, to helping our military confront 21st century threats in new domains like space and cyberspace. Armed with 35 years of strong managerial experience, deep technical expertise, and visionary leadership, Gen. Hyten is the perfect choice to lead this critical command  in the years to come, as the men and women of STRATCOM carry out missions essential to our national defense -- including sustaining nuclear deterrence through a safe, secure, and effective triad, helping defend our networks and deter malicious actors in cyberspace, and preparing for the possibility of a conflict that extends into space.

The INSIDER daily digest -- Sept. 9, 2016
By John Liang
September 9, 2016 at 3:06 PM

The Navy's new plan for its Littoral Combat Ships, North Korea's recent nuclear test and more highlight this Friday INSIDER Daily Digest.

The Navy has completely revamped the way it will deploy its Littoral Combat Ships:

Navy will base Independence-variant LCSs on West Coast, Freedom-variant ships on East Coast

The Navy has introduced sweeping changes to the way it will operate its 28 baseline Littoral Combat Ships moving forward, including a decision to separate where the two different variants of the ship are based.

While in Norway, Defense Secretary Ash Carter commented on North Korea's latest nuclear weapon test:

Carter offers U.S. 'nuclear umbrella' on heels of North Korean test

OSLO, NORWAY -- The United States is prepared to answer North Korea's latest nuclear test with all aspects of its deterrence capabilities, including the U.S. "nuclear umbrella," according to Defense Secretary Ash Carter.

More coverage from this week's COMDEF conference in Washington:

F-35 program struggling with IP, data rights not defined in early days

The head of the F-35 program told a panel of industry and government officials this week that the Joint Strike Fighter is "a classic example" of how inadequate initial planning around intellectual property and data rights can hinder a program as it looks to pursue new sustainment or modernization options.

DSCA director envisions future expansion of NATO FMS pooling initiative

The director of the Defense Security Cooperation Agency said this week he would like to expand a pilot program aimed at allowing NATO member countries and organizations to purchase defense capabilities essentially as a consortium through foreign military sales.

Inside Defense had a chat with the head of Lockheed Martin's new venture capital fund:

With new hire at helm, Lockheed Martin Ventures readies to make first investment

Lockheed Martin's venture capital fund is preparing to make its first investment since hiring a new leader.

(Want more defense business news? Check out our Notification Center, where you can sign up to receive email alerts whenever a related story is posted.)

Keep an eye out for an Air Force final RFP for a weather system follow-on satellite:

Air Force to award contract for key weather sat system this year

The Air Force has indicated it plans to solicit bidders this year for a key capability to fly on its Weather System Follow-on constellation.

Document: Air Force's draft RFP for weather system follow-on satellite

DARPA wants proposals for a hypersonic propulsion system by the end of September:

DARPA seeks to develop, test reusable hypersonic propulsion system

The Pentagon's advanced research arm seeks proposals by month's end for a program that will develop and test a reusable propulsion system for hypersonic aircraft systems that can help with intelligence, surveillance and reconnaissance efforts in hard-to-reach environments.

Document: DARPA BAA for advanced full range engine

Inside the Air Force highlights
By John Liang
September 9, 2016 at 11:09 AM

Some must-reads from this week's issue of Inside the Air Force:

1. The F-35 program executive officer said Sept. 7 he expects to award a multibillion-dollar payment to Lockheed Martin in the next few weeks to cover some of the jet manufacturer's costs for low-rate initial production Lot 10, which has been caught up in a drawn-out negotiations process.

Full story: F-35 PEO: DOD hopes to award multibillion-dollar Lot 10 UCA this month

2. The head of the F-35 program told a panel of industry and government officials this week that the Joint Strike Fighter is "a classic example" of how inadequate initial planning around intellectual property and data rights can hinder a program as it looks to pursue new sustainment or modernization options.

Full story: F-35 program struggling with IP, data rights not defined in early days

3. The director of the Defense Security Cooperation Agency said this week he would like to expand a pilot program aimed at allowing NATO member countries and organizations to purchase defense capabilities essentially as a consortium through foreign military sales.

Full story: DSCA director envisions future expansion of NATO FMS pooling initiative

4. The Air Force has indicated it plans to solicit bidders this year for a key capability to fly on its Weather System Follow-on constellation.

Full story: Air Force to award contract for key weather sat system this year

Pentagon eyes 'seismic activity' in North Korea
By Tony Bertuca
September 9, 2016 at 9:27 AM

BODO, NORWAY -- Defense Secretary Ash Carter has been briefed on "seismic activity" in North Korea that North Korean state media said was a nuclear test, according to the Pentagon.

"Secretary Carter has been briefed on the seismic activity near a North Korea nuclear site," according to a statement from Pentagon Press Secretary Peter Cook. 

"If this turns out to be a nuclear test, it would be yet another flagrant violation of United Nations Security Council Resolutions, and a serious provocation that poses a significant threat to the peace and security of the Korean peninsula and the stability of the Asia-Pacific region."

The Defense Department will "continue to monitor the situation, and Secretary Carter will remain in close contact with our South Korean allies as well as others friends and allies in the region," Cook said.

Meanwhile, the Comprehensive Nuclear Test Ban Treaty Organization is holding a meeting in Vienna today to discuss the event.

UPDATE 10:30 a.m.: President Obama issued a statement on the test:

The United States condemns North Korea's September 9 nuclear test in the strongest possible terms as a grave threat to regional security and to international peace and stability. North Korea stands out as the only country to have tested nuclear weapons this century. Today's test, North Korea's second this year, follows an unprecedented campaign of ballistic missile launches, which North Korea claims are intended to serve as delivery vehicles for nuclear weapons targeting the United States and our allies, the Republic of Korea and Japan. As Commander in Chief, I have a responsibility to safeguard the American people and ensure that the United States is leading the international community in responding to this threat and North Korea's other provocations with commensurate resolve and condemnation.

To be clear, the United States does not, and never will, accept North Korea as a nuclear state. Far from achieving its stated national security and economic development goals, North Korea's provocative and destabilizing actions have instead served to isolate and impoverish its people through its relentless pursuit of nuclear weapons and ballistic missile capabilities. Today's nuclear test, a flagrant violation of multiple UN Security Council Resolutions, makes clear North Korea's disregard for international norms and standards for behavior and demonstrates it has no interest in being a responsible member of the international community.

Last night I returned from the G-20 and East Asia Summit meetings in Asia, where my counterparts and I were united in our call for North Korea to return to the path of denuclearization.  Upon hearing the news of the test, I had the opportunity to consult separately via phone with Republic of Korea (ROK) President Park Geun-Hye and Japanese Prime Minister Shinzo Abe.  We agreed to work with the UN Security Council, our other Six-Party partners, and the international community to vigorously implement existing measures imposed in previous resolutions, and to take additional significant steps, including new sanctions, to demonstrate to North Korea that there are consequences to its unlawful and dangerous actions. I restated to President Park and Prime Minister Abe the unshakable U.S. commitment to take necessary steps to defend our allies in the region, including through our deployment of a Terminal High Altitude Area Defense (THAAD) battery to the ROK, and the commitment to provide extended deterrence, guaranteed by the full spectrum of U.S. defense capabilities.

Air Force selects possible MQ-9 Reaper bases
By John Liang
September 8, 2016 at 5:22 PM

The Air Force has released a list of possible installations for basing a new MQ-9 Reaper unmanned aircraft wing.

The first location -- which has been narrowed down to Davis-Monthan Air Force Base, AZ; Moody AFB, GA; Mountain Home AFB, ID; Offutt AFB, NB; or Shaw AFB, SC -- could host an operations group with mission control elements but no actual aircraft, according to a service statement.

"These locations currently have an active-duty flying wing or group that performs at least one core remotely piloted aircraft mission and/or is co-located with an active-duty distributed ground system," the statement reads.

The second location -- narrowed down to Eglin AFB, FL; Tyndall AFB, FL; Vandenberg AFB, CA, and Shaw AFB -- "would potentially host a full MQ-9 wing, to include both a launch and recovery element and a mission control element, as well as a maintenance group and operations support personnel. That location is expected to have up to 24 MQ-9 aircraft assigned," according to the service statement, which continues:

The Air Force is pursuing additional basing locations to help diversify assignment opportunities for personnel within the MQ-9 enterprise, provide increased opportunities for leadership from within the community, and provide flexibility to enhance integration with other organizations and capabilities.

The desire for additional locations for an MQ-9 wing was identified during surveys of officers and enlisted Airmen in the MQ-1 Predator and MQ-9 enterprise as part of Air Combat Command’s Culture and Process Improvement Program.

"We are using the strategic basing process to determine the best locations for hosting additional locations for the MQ-9 mission," said Jennifer L. Miller, the deputy assistant secretary of the Air Force for installations. "As we go through the basing process, we will use the information we collect to help us determine the affordability and potential locations for expanding the MQ-9 enterprise."

ACC will now conduct site surveys at all eight locations. Site survey teams will assess each location against requirements, potential impacts to existing missions, infrastructure and manpower. They will also develop cost estimates to bed down the planned units.

Based on the results of these efforts, the Air Force plans to select the preferred alternatives as early as the winter of 2016. Final basing decisions will be made by the secretary of the Air Force after the requisite environmental analysis is complete.