The Insider

By Marjorie Censer
September 2, 2016 at 11:02 AM

LMI said this week it has agreed to acquire FourWinds in a deal that will nearly double the size of its intelligence team.

Terms of the transaction were not disclosed.

Nelson Ford, LMI's chief executive, told Inside Defense last year that the company was seeking growth. Link 169392

"We're not opposed to acquisitions, but acquisitions really have to fit," Ford said at the time.

By Lee Hudson
September 1, 2016 at 4:11 PM

The Marine Corps recently completed operational test shots of the AIM-120 Advanced Medium-Range Air-to-Air Missile from a Joint Strike Fighter at Eglin Air Force Base in Florida.

Three F-35B short-take-off-vertical-landing jets, 75 Marines from Marine Operational Test and Evaluation Squadron-1 (VMX-1) detachment at Edwards Air Force Base, CA, and 21 test personnel from the JSF operational test team at Edwards AFB, CA, were at Eglin from Aug. 9 to Sept. 1 for AMRAAM testing, according to a Sept. 1 Marine Corps statement.

“Due to the commonality of the F-35 mission systems and weapons, everything we learned during this detachment directly translates to combat capabilities for the Marine Corps, our sister services, and partner countries,” Lt. Col. Richard Rusnok, VMX-1 F-35B detachment officer-in-charge said in the same statement.

During the test period the detachment completed five AIM-120 missile shots and one Guided Bomb Unit-12 laser guided bomb, according to the statement.

“On day one of live fire testing, the team was able to shoot two missiles on two separate test set-ups within 12 minutes -- an exceptional level of efficiency in a test environment,” the statement reads.

By Thomas Duffy
September 1, 2016 at 2:52 PM

The Pentagon's experimental office awards a contract, the Navy defends the Ford-class aircraft carrier, business news and more highlight this Thursday INSIDER Daily Digest.

Defense Secretary Ash Carter's experimental office makes a contract award:

DIUx makes new award for autonomous tactical drone

The Defense Innovation Unit Experimental, the Pentagon's new technology prototype outreach team, has awarded a contract for an autonomous tactical airborne drone.

Members of Congress want to halt a billion-dollar arms sale:

Lawmakers seek to pause $1.15B tank sale to Saudis; question timing

Dozens of lawmakers have sent a bipartisan letter to President Obama in the hopes of postponing a $1.5 billion arms sale to Saudi Arabia amid opposition to Saudi military actions in Yemen and reports of civilian casualties.

The Navy is going to bat for its newest aircraft carrier:

Navy defends five new technologies on CVN-78 that are target of OSD-directed review

The Navy is defending the five new technologies outfitting the next-generation megacarrier the Gerald R. Ford that are targeted in a new review directed by the Pentagon's chief weapons buyer.

The Defense Department gives more details about Data centers:

DOD shares more details about size, makeup of data center closure team

The Pentagon has shed more light on its announced plan to establish a new team to assess and recommend closing the most expensive and least efficient data centers.

The inspector general is looking at EUCOM's cyber operations:

DOD IG launches audit of EUCOM's cyberspace operations integration

The Pentagon's inspector general's office is launching an audit of U.S. European Command's integration of cyberspace operations in a study that is expected to be followed by other similar efforts to determine if combatant commands are incorporating cyber operations, according to a recent memo.

More IG news:

DOD IG launches two studies examining ISR needs in Middle East

The Defense Department inspector general's office is launching a set of studies examining the department's intelligence, surveillance and reconnaissance efforts in the Middle East.

A contractor and the Navy are working UAS issues:

AeroVironment touts 'walk-on, walk-off capability'

AeroVironment is working with the Navy on incorporating and integrating its small unmanned aerial systems into Navy operations, the company's chief executive said this week.

More business news:

Harris moves to add two to board

Harris said this week former Boeing executive James Albaugh has been appointed to its board of directors, effective today. Additionally, Roger Fradin, a Honeywell executive, has been nominated for election to the board.

By Lee Hudson
September 1, 2016 at 2:42 PM

The aircraft carrier Harry S. Truman recently arrived at Norfolk Naval Shipyard for a planned 10-month incremental maintenance availability that includes upgrading the ship's information technology system.

The Truman (CVN-75) arrived in Norfolk, VA, Aug. 25 and maintenance is scheduled to begin Sept. 27, according to a Navy statement.

“Because Truman's last availability at NNSY was condensed, significant maintenance was deferred, making this a large and complex availability,” Truman Deputy Project Superintendent Bobby Leigh said in the same Sept. 1 statement.

The maintenance period will take approximately 499,733 man-days and 51 percent of the work will be completed by contractors, alteration installation team and the ship's team.

“It's a complex availability with a heavy contracting package,” Truman Project Superintendent Mike Jennings said in a statement. “We're partnering with Huntington Ingalls Industries (HII) in a way we've never done before.”

By Marjorie Censer
September 1, 2016 at 12:55 PM

AeroVironment is working with the Navy on incorporating and integrating its small unmanned aerial systems into Navy operations, the company's chief executive said this week.

Part of what makes the company's systems appealing to the service, Wahid Nawabi said during a call with analysts, is what he described as a "walk-on, walk-off capability."

"Based on the engagements that we have with the Navy on the small UAS front, they're working towards what I call the adoption process of how it actually becomes part of a standard plan," he said. "We have received some funding to work with them in terms of delivering some products. We've shared with you the progress we made in terms of the Precision Landing System . . . that we have developed, which essentially allows the Puma [All Environment] to precisely land on a net, which requires zero retrofit really to the ship's existing structure or operation."

Nawabi also said the company's Puma AE and Wasp AE "can withstand operations."

"They could land in saltwater in the ocean, and then you can literally wash it off and wipe it off and just fly it again," he said. "And you could do this over and over again. It's part of the specifications of the product."

But asked about whether the Navy is preparing a program of record, Nawabi demurred.

"Are they planning to work on a program of record? I don't have any specific details on that to provide today, and I can't predict that right now," Nawabi said. "All indicators are that there's a very large opportunity for us. The Navy is very interested in this capability and we believe that the adoption will happen. However, the timing really is unpredictable."

He added that AeroVironment has also demonstrated its Blackwing UAS to the Navy.

"This is a capability the Navy has been looking for, and it actually opens up a whole new set of capabilities and concepts of operations, which has never been heard before in this space, in this segment," Nawabi said. "I think that that Blackwing demonstration and progress that we've made so far also is a fairly significant long-term opportunity for our business -- the timing of which is unpredictable again."

By Tony Bertuca
September 1, 2016 at 10:52 AM

Here are a few must-reads from this week's edition of Inside the Pentagon:

1. The Pentagon has released a final rule that provides contractors with more safe harbors for cost reimbursement if they discover counterfeit parts in their supply chain.

Full story: DOD releases final rule to help industry recoup counterfeit costs

2. Dozens of lawmakers have sent a bipartisan letter to President Obama in the hopes of postponing a $1.5 billion arms sale to Saudi Arabia amid opposition to Saudi military actions in Yemen and reports of civilian casualties.

Full story: Lawmakers seek to pause $1.15B tank sale to Saudis; question timing

3. The Pentagon has shed more light on its announced plan to establish a new team to assess and recommend closing the most expensive and least efficient data centers.

Full story: DOD shares more details about size, makeup of data center closure team

By Marjorie Censer
September 1, 2016 at 10:26 AM

Harris said this week former Boeing executive James Albaugh has been appointed to its board of directors, effective today. Additionally, Roger Fradin, a Honeywell executive, has been nominated for election to the board.

The election will be held Oct. 28.

Both board seats are a result of the process by which Harris and JANA Partners, one of its larger shareholders, identified "two mutually acceptable individuals independent of JANA to be added as independent directors to the Harris Board." The company announced the agreement earlier this summer.

Albaugh is a senior adviser to Perella Weinberg Partners. He spent 37 years at Boeing, including leading the commercial airplane business, the integrated defense systems business and the space and communications unit.

Fradin is vice chairman of Honeywell International and previously was chief executive of Honeywell's automation and controls business.

By Marjorie Censer
September 1, 2016 at 10:24 AM

Vectrus said today it was not selected to provide logistics support services in Kuwait and Qatar through the Army Prepositioned Stocks-5 -- or APS-5 -- contract.

Vectrus, the incumbent, said the contract is funded through Nov. 30 and could extend through Feb. 28. The APS-5 contracts have provided $93 million in sales through June of this year.

The Pentagon announced yesterday that URS Federal Services was awarded a $70 million modification for APS-5.

Vectrus has been focused on winning several major recompetitions. In particular, the Kuwait-Base Operations and Security Support Services or K-BOSSS program comprises about 30 percent of the contractor's revenue.

By John Liang
August 31, 2016 at 3:07 PM

A new contracting rule, an Air Force "Non-DOD Military Aircraft" office and much more highlight this Wednesday INSIDER Daily Digest.

DOD has promulgated a new rule meant to entice non-traditional companies to apply for contracts:

Pentagon proposes rule meant to help non-traditional contractors and small businesses

The Defense Department has proposed a rule that would exempt non-traditional contractors and small businesses from certified cost and pricing data requirements for certain contracts.

Document: Proposed DOD rule for non-traditional contractors and small businesses

More DOD acquisition news:

Pentagon forms independent panel to review acquisition process

The Defense Department has established a new Advisory Panel on Streamlining and Codifying Acquisition Regulations to "conduct a thorough and independent assessment" to improve efficiency and effectiveness, according to a Tuesday announcement from DOD.

The Air Force now has a better handle on what contractors are investing in:

New office gives Air Force a closer look at what industry is selling to foreign militaries

A new office tasked with assessing aircraft being pitched to foreign military customers is giving the Air Force a close-up look at the capability investments companies are making in non-Defense Department programs.

The Navy's Littoral Combat Ship program just can't catch a break:

LCS-4 'suffered an engineering casualty' while transiting to the Western Pacific

The fourth Littoral Combat Ship recently "suffered an engineering casualty" while transiting from Hawaii to the Western Pacific, according to the Navy.

Keep an eye out for an upcoming Army survey of its programs in the coming months:

Army G-8: Extensive reviews set for service portfolios this fall

The Army is set to employ a "brand-new" process to evaluate hundreds of programs across the service, according to the deputy chief of staff (G-8).

DOD is moving money into cybersecurity:

Pentagon shifts $100M to assess weapon system cyber vulnerabilities

The Pentagon is shifting $100 million to boost ongoing efforts to uncover cyber vulnerabilities in specific weapon systems, according to a recent internal reprogramming memo.

Document: DOD reprogramming action on cyber vulnerabilities

Coverage of the Army's new Rapid Capabilities Office:

Army launches RCO to tackle key capability gaps

The Army's new Rapid Capabilities Office aims "to strip some of [the] unnecessary bureaucracy out of" the acquisition system to enable the service to quickly provide critical capabilities to the warfighter, according to the Army secretary.

The Navy will be awarding a vertical launch payload contract next year:

NAVSEA plans to award vertical launch payload contract in 2017

Naval Sea Systems Command plans to award a contract in May or June 2017 for vertical launch payloads for submarines once interested companies submit white papers in the beginning of fiscal year 2017.

Northrop Grumman has proposed a way to network the world's oceans:

Northrop Grumman demonstrates strategy to network the oceans

Northrop Grumman demonstrated a strategy to network the world's oceans during the Annual Naval Technology Exercise the Navy hosted in Rhode Island last week.

The head of U.S. Army Pacific spoke to reporters recently:

Army Pacific commander touts collaboration, force posture

Increased collaboration with regional partners is proving valuable for U.S. forces, according to the commander of U.S. Army Pacific.

By Marjorie Censer
August 30, 2016 at 5:30 PM

AeroVironment said today sales in its most recent quarter reached $36.2 million, down from $47.1 million in the same three-month period a year earlier.

The company reported a quarterly loss of $11.6 million, more than the $7 million the company lost during the same quarter the prior year.

AeroVironment attributed the sales decline to a nearly $10 million sales reduction within its unmanned aircraft systems business.

Still, Wahid Nawabi, chief executive of AeroVironment, struck an optimistic note.

In a statement included in the company’s earnings announcement, he said AeroVironment is still seeing international demand for its small UAS and is "poised to capitalize on revenue opportunities for small UAS with the U.S. Department of Defense."

By Marjorie Censer
August 30, 2016 at 4:41 PM

Textron said today its Textron Systems business will discontinue production of its sensor-fuzed weapon product because of reduced orders.

As a result, the company said in a filing with the Secuities and Exchange Commission, there will be "headcount reductions, facility consolidations and asset impairments within its Weapons and Sensors operating unit" as well as additional job cuts and asset impairments in the Textron Systems business.

"Historically, sensor-fuzed weapon sales have relied on foreign military and direct commercial international customers for which both executive branch and congressional approval is required," the company said in its filing. "The current political environment has made it difficult to obtain these approvals."

The move is part of a larger restructuring plan the company said is intended to "improve overall operating efficiency across Textron."

Within the company's industrial segment, its Jacobsen turf-maintenance business will be combined with its Textron Specialized Vehicles businesses, which will generate facility consolidations and headcount reductions.

Under the plan, the company expects to incur pre-tax charges of $110 million to $140 million. 

"Severance and related costs are estimated to be in the range of $40 million to $55 million," Textron added. "Contract termination and other facility closure charges are estimated to be in the range of $25 million to $30 million, and asset impairment charges are estimated to be in the range of $45 million to $55 million."

By John Liang
August 30, 2016 at 2:32 PM

The latest in the legal wrangling between the Army and AgustaWestland, the Marine Corps' working on a sea-based UAS program and a new CNAS report on open-source software highlight this Tuesday INSIDER Daily Digest.

A judge recently issued a ruling on a dispute between the Army and AgustaWestland over the service's procurement of training helos:

Judge sends Army back to drawing board on training aircraft procurement

The saga continues over the Army's effort to modernize its aviation training fleet, following a ruling this month in AgustaWestland's lawsuit over procurement of 16 additional training helicopters.

Document: Court ruling on AugustaWestland training helo lawsuit

The Marine Corps is working on a sea-based unmanned aerial system program:

Marine Corps considering range of options for large, sea-based UAS

With the Marine Corps on track for approval to begin a large, sea-based unmanned aerial system program, the service is looking at options like a derivative of Bell's V-280 to meet that need.

DOD should consider using more open-source software, a new report states:

CNAS report recommends DOD 'embrace open-source software'

A new report from the Center for a New American Security is recommending the Pentagon take more aggressive steps to embrace open-source software.

The Marine Corps' Joint Strike Fighter variant will be deployed to two combatant commands during the same year:

Marines plan to deploy F-35B in PACOM, CENTCOM during the same year

The Marine Corps plans to deploy the Joint Strike Fighter to both U.S. Pacific Command and U.S. Central Command in the same year, according to a service official.

The Marine Corps' Amphibious Combat Vehicle and Joint Light Tactical Vehicle could be getting more armor:

Neller: Marines may install active vehicle protection systems on ACV, JLTV

The Marine Corps may install active vehicle protection systems on the Amphibious Combat Vehicle and Joint Light Tactical Vehicle to combat the anti-access/area denial threat, according to service Commandant Gen. Robert Neller.

The Army has taken the next step in upgrading its family of medium tactical vehicles:

Army releases FMTV presolicitation

The Army last week released a presolicitation notice regarding a contract for upgrades to the family of medium tactical vehicles, although quantities and funding levels remain pending.

Defense Secretary Ash Carter met with his Indian counterpart yesterday:

Pentagon strengthens ties to India with new defense technology agreements

Defense Secretary Ash Carter said Monday that a new agreement with India will by the end of the year advance several joint projects focused on the transfer of jet and aircraft carrier technology to set the stage for future co-development and co-production.

Document: U.S.-India bilateral meeting joint statement

By John Liang
August 30, 2016 at 1:50 PM

An outright ban on nuclear weapons is "unrealistic," a State Department official said this week.

A United Nations "Open-ended Working Group on nuclear weapons" recently completed a report which "recommended with widespread support for the General Assembly to convene a conference in 2017, open to all States, with the participation and contribution of international organizations and civil society, to negotiate a legally-binding instrument to prohibit nuclear weapons, leading towards their total elimination."

That report was rejected by the United States.

"The United States calls on all states to reject unrealistic efforts to ban nuclear weapons," Principal Deputy Assistant Secretary of State for Arms Control, Verification and Compliance Anita Friedt said in an Aug. 29 speech in Astana, Kazakhstan, adding: "The OEWG final report and efforts to institute a legal ban on nuclear weapons fail to take account of the international security environment and will neither lead to the elimination of nuclear weapons nor uphold the principle of undiminished security for all.

"So, together let us reject division and instead agree that we share a common goal and recommit to the roadmap we are on, one that has proven results," she continued, adding: "Together we can make true the hope expressed by President Obama in Hiroshima: to refocus 'the wonders of science on improving life, rather than destroying it.'"

By Courtney Albon
August 29, 2016 at 2:59 PM

As the Air Force prepares to allow enlisted airmen to fly the Global Hawk remotely piloted aircraft, the service has decided to "cast a wider net" and allow all airmen from all specialties to be eligible to serve as pilots.

The service announced the broadened eligibility requirements in an Aug. 29 press release, noting that "now all airmen should be eligible to take advantage of this program if they meet the qualifications." Previously, only career-enlisted aviators were qualified.

The service has a shortage of RPA pilots, and announced last December it would allow its enlisted personnel to fly the Global Hawk. The aircraft flies non-strike missions, and the service has said it is still evaluating whether it will change its policy for kinetic missions.

The Air Force will begin training its first class of enlisted RPA pilots in October, and expects that by 2020, 70 percent of Global Hawk pilots will be enlisted airmen.

By John Liang
August 29, 2016 at 2:51 PM

U.S. Army soldiers will be taking part in the 12th-annual, bilateral Yudh Abhyas Exercise in India in September.

Defense Secretary Ash Carter and Indian Defense Minister Manohar Parrikar, in a joint statement issued this afternoon following a meeting between the two, said they were "encouraged by the increased complexity" of next month's exercise.

Last year's exercise was held in the United States for the first time, with 150 Indian soldiers participating at Joint Base Lewis-McChord, WA. According to an Army statement at the time:

The annual, bilateral exercise, which kicked off Sept. 9 and runs through Sept. 23, focuses on combined U.S. and Indian army training while promoting an enduring partnership and joint interoperability. Participating Soldiers will train together in low-intensity, counter-insurgency actions; civic assistance missions; and quick-reaction team operations. There will also be a combined command post exercise.