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The INSIDER daily digest
By John Liang
August 18, 2016 at 3:56 PM

Contractors for the ATACMS follow-on effort, the MQ-25A unmanned aircraft and more stories are highlighted in this Thursday INSIDER Daily Digest.

Lockheed Martin and Raytheon will be working on the ATACMs follow-on early development:

Army taps Raytheon, Lockheed for early phase of new, long-range guided missile

The Army has selected two contractors to participate in initial development of its follow-on to the Army Tactical Missile System (ATACMS).

A senior uniformed Navy officer says the MQ-25A unmanned aircraft program needs better survivability:

Admiral: MQ-25A lacks stealth requirement, survivability not a key performance parameter

The Navy's future unmanned tanker does not have a stealth requirement and survivability for the platform is not a key performance parameter, according to a top service official.

The DOD IG is calling for revisions to the Pentagon's FOIA process:

Inspector general says Pentagon's FOIA process is 'outdated'; needs improvement

The Defense Department inspector general has found that the Pentagon's Freedom of Information Act policies are "outdated" and should be revised, according to a report released Aug. 18.

Document: DOD IG report on the Pentagon's FOIA process

DOD is disagreeing with a GAO report on O&M funding:

Pentagon clashes with GAO over O&M spending transparency

The Defense Department is pushing back against a Government Accountability Office recommendation that would provide Congress more detailed information on how the Pentagon spends its operations and maintenance money.

Document: GAO report on O&M base obligations

More news from this week's Inside the Pentagon:

Gilmore calls on T&E community to help improve cybersecurity testing

The director of the Pentagon's operational test and evaluation shop is calling on the T&E community to help improve cybersecurity testing.

Bipartisan letter seeks to keep moratorium on A-76 privatization studies

Lawmakers are calling on the leaders of the Senate Armed Services Committee to remove language in the upper chamber's version of the fiscal year 2017 defense authorization bill that would repeal a moratorium on certain public-private competitions.

Army official says single-profile medical system provides more information

The Army's new single-profile medical system is expected to give commanders a sharper view of their soldiers' overall readiness, a top Army medical official told reporters during an Aug. 18 breakfast.

Lawmakers defer $166M in request to transfer funds for CT partnership efforts

The House and Senate Armed Services committees have opted to defer $166 million from a Pentagon request to transfer $376 million in funds to counterterrorism partnership efforts.

BWX Technologies subsidiary to acquire GE Hitachi Nuclear Energy Canada
By Marjorie Censer
August 18, 2016 at 11:07 AM

BWX Technologies -- which builds the nuclear reactors used on U.S. Navy aircraft carriers and submarines -- said today its subsidiary BWXT Canada has agreed to buy all the shares of GE Hitachi Nuclear Energy Canada.

The terms of the deal, which is set to be completed by the end of the year, were not disclosed.

"This acquisition roughly doubles BWXT's footprint in Canada," the company said in a statement.

The 350-employee GE Hitachi Nuclear Energy Canada will maintain its headquarters in Peterborough, Ontario, according to BWXT. John MacQuarrie, president of BWXT Canada, will lead the combined organization, while Mark Ward, GEH-C's president, will remain part of the leadership.

Inside the Pentagon highlights
By Tony Bertuca
August 18, 2016 at 10:45 AM

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

1. The Defense Department is pushing back against a Government Accountability Office recommendation that would provide Congress more detailed information on how the Pentagon spends its operations and maintenance money.

Full story: Pentagon clashes with GAO over O&M spending transparency

2. Lawmakers are calling on the leaders of the Senate Armed Services Committee to remove language in the upper chamber's version of the fiscal year 2017 defense authorization bill that would repeal a moratorium on certain public-private competitions.

Full story: Bipartisan letter seeks to keep moratorium on A-76 privatization studies

3. Lawmakers have deferred the Pentagon's request to reprogram millions of dollars in fiscal year 2016 for two research and development new start programs.

Full story: Lawmakers defer DOD's request to reprogram dollars for two new starts

CACI International reports increased sales, profit
By Marjorie Censer
August 18, 2016 at 9:36 AM

CACI International said today sales in the company's most recent quarter hit $1.1 billion, up nearly 29 percent from the same three-month period a year earlier.

The revenue boost was primarily attributed to the company's acquisition of L-3 Communications' national security solutions business.

CACI also reported quarterly profit of $43.6 million, up about 5 percent from the prior year.

For the year, the company reported sales of $3.7 billion, up about 13 percent from the prior year. Profit hit nearly $143 million, also up about 13 percent.

The company said the boost provided by NSS was offset by $14 million in one-time, pre-tax acquisition-related expenses. During the year, NSS contributed $427 million in sales and nearly $19 million in profit.

ASRC acquires Vistronix
By Marjorie Censer
August 18, 2016 at 9:34 AM

Arctic Slope Regional Corp. this week said its subsidiary ASRC Federal has acquired defense and intelligence contractor Vistronix, which has more than 700 employees.

Vistronix itself had been making several acquisitions in recent years. The company in late 2014 acquired three companies: Agency Consulting Group, which specializes in enterprise IT; ExaTech Solutions, focused on software and systems; and Objective Solutions, which provides big data, cyber and analytics.

Vistronix was backed by Enlightenment Capital, an investment firm focused on aerospace, defense and government and founded by Pierre Chao and Devin Talbott.

ASRC said the deal would expand its work with intelligence agencies and boosts its capabilities in advanced analytics, signal intelligence, cybersecurity and large-scale data processing. Vistronix will operate as a subsidiary of ASRC Federal.

AIA meets with Clinton advisers
By Marjorie Censer
August 17, 2016 at 4:30 PM

The Aerospace Industries Association said it participated in a meeting today with "informal Hillary [Clinton] for America advisers" on issues important to the defense and aerospace industry.

"AIA's role is to educate our elected leaders, candidates for office and the general public on the importance of our industry to our economy and national security," the association said in a statement.

In June, AIA said it participated in a meeting with the Trump campaign "to brief Mr. [Donald] Trump on issues of importance to our industry."

The association added in its statement that it is a "strictly non-partisan organization and is not permitted -- expressly or by implication -- to endorse candidates for political office. Our briefings are for educational purposes only, and we welcome the opportunity to speak with the candidates about issues that matter to our nation, our industry and our members."

The INSIDER daily digest
By John Liang
August 17, 2016 at 3:38 PM

Security clearance approvals for defense contractor personnel have slowed down as of late:

Defense executives report slowed security clearance approvals

Contracting executives say they're facing difficulty in getting security clearances approved, in some cases slowing their ability to staff contracts.

Document: DNI report on security clearance determinations

Expect to see an Air Force RFP for the JSTARS program soon:

Air Force: JSTARS recap RFP coming soon

The Air Force expects to release a request for proposals for the Joint Surveillance Target Attack Radar System recapitalization program in the near future, announcing this week that the solicitation would follow soon after the Pentagon acquisition chief signs an acquisition decision memorandum.

More Marine Corps news from this week's Inside the Navy:

Marines use Reaper drone for first time during tech experiment

The Marine Corps used the support of a MQ-9 Reaper organic to a Marine Expeditionary Unit for the first time during a recent technology experiment, and contractor General Atomics Aeronautical Systems is pitching the drone as an interim capability for the service as it weighs long-term requirements for a large, sea-based unmanned aerial system.

Marines see need for 'assistant squad leader' to use new tech

TWENTYNINE PALMS, CA -- The Marine Corps wants to push a range of technologies down to its infantry squads, and the service believes an "assistant squad leader" may be needed to successfully employ the new systems.

Despite software glitches, F-35 op squadron had 98 percent sortie completion

Despite software glitches the first-ever Joint Strike Fighter operational squadron had a 98 percent sortie completion rate during a recent Red Flag joint integration exercise, according to a Marine Corps official.

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

Marine Corps may decide by the beginning of 2017 on force organization

The Marine Corps may decide by the beginning of 2017 on how the future force should be organized, according to the service's top general.

Keep an eye out for an upcoming Army cyber innovation challenge:

Army seeks vehicle to centralize cyberspace operations

The Army intends to host a Cyber Innovation Challenge "to evaluate the technical feasibility of an integrated cyberspace operations platform," according to a notice posted on the Federal Business Opportunities website.

DISA announces date of 2016 'forecast to industry' event
By John Liang
August 17, 2016 at 2:09 PM

The Defense Information Systems Agency has announced the date of its 2016 "Forecast to Industry."

The event will take place on Thursday, Nov. 17, from 8 a.m. to 4:30 p.m. Eastern Standard Time at the Baltimore Convention Center in Maryland.

The meeting "is intended to provide our industry partners with in-depth information about the agency's acquisition and procurement plans," according to a DISA announcement, which adds:

DISA's senior leadership will brief tactical acquisition issues, requirements, and planned procurements for the 2017/2018 fiscal years. Attendees will have the opportunity to interact with senior leaders, program managers, and acquisition representatives during question-and-answer sessions and on an individual basis. 

Registration will open Sept. 26, the announcement states, adding that due to limited seating, attending contractors will be limited to two representatives per company.

Navy, Marine Corps begin Bold Alligator 2016 exercise
By Lee Hudson
August 16, 2016 at 5:59 PM

The Navy and Marine Corps recently kicked off an amphibious exercise that focuses on the anti-access/area-denial threat.

Bold Alligator 2016 is a synthetic, scenario-based simulation exercise designed to train the Expeditionary Strike Group 2 and 2nd Marine Expeditionary Brigade, according to a U.S. Fleet Forces Command statement. The exercise started Aug. 15 and runs through Aug. 26.

"The Bold Alligator series has been invaluable to the Navy-Marine Corps team's amphibious operations and has increased our interoperability and cooperation with our allies and partners," Vice Adm. Richard Breckenridge, deputy commander of USFF, said in the same statement. "As a synthetic exercise, Bold Alligator 2016 creates a unique opportunity to evaluate planning processes, execute command and control across the amphibious force and provide valuable experience for all participants, setting the conditions for success in Bold Alligator 2017, next year's live exercise."

The last time Bold Alligator was held, it focused on crisis-response operations with coalition partners. The capabilities that allow amphibious forces to conduct a forcible entry against an opposing military force are the same capabilities that make it the first, best choice for crisis-response, humanitarian assistance and building partnerships, according to the USFF statement.

Bold Alligator 2016 will prepare service members and coalition partners for Bold Alligator 2017, which will draw from this year's afloat and ashore planning to train amphibious forces in a real-world environment. This year's exercise has 15 countries participating or observing from different command elements, according to USFF.

"Bold Alligator 2016 capitalizes on modern simulation technology to refine joint and combined amphibious operations from planning to execution, with a focus on translating the ongoing exercise efforts to follow-on live exercises," Lt. Gen. John Wissler, the head of Marine Forces Command, said in the same statement. "The combination of realistic simulation technologies and existing communications infrastructure during this exercise provides the Navy and Marine Corps team, along with our international partners, the ability to rigorously train for amphibious combat in an ever-increasingly complex environment by leveraging the efficiencies of virtual and constructive training tools, all the while developing the most valuable warfighting commodity -- personal relationships between military professionals."

The INSIDER daily digest
By John Liang
August 16, 2016 at 4:56 PM

A preview of Air Force Space Command's future challenges:

AFSPC highlights long-term space and cyber S&T challenges

Air Force Space Command anticipates that the need for improved sensor capabilities, on-orbit sustainment, better space access and innovative ground capabilities will make up some of its top challenges over the next three decades and will inform its contributions to the Defense Department's Third Offset Strategy.

Document: AFSPC memo on long-term S&T challenges

A new Defense Science Board report is out:

Defense Science Board sees 'tipping point' for autonomous technology

Autonomous technology has reached a "tipping point" and the Defense Department must take immediate action to accelerate research and development activities in autonomy, according to a new Defense Science Board report obtained by Inside Defense.

Document: DSB report on autonomy

Unmanned systems were recently used during a missile defense test:

Predator B drones detect, track ballistic missile target in Hawaii

A pair of Predator B unmanned aircraft recently detected and tracked a ballistic missile target off the coast of Hawaii, according to a General Atomics Aeronautical Systems statement.

Unmanned systems are also a subject of interest for the Marine Corps:

Marines want to air-launch drone swarm out of V-22 Osprey

Marine Corps testers and the Office of Naval Research are teaming up to potentially air-launch a swarm of unmanned aerial vehicles out the back of a V-22 Osprey.

Marines experiment with manned-unmanned teaming in live-fire exercise

Marine Corps technologists experimented with pairing a Marine platoon with various unmanned air and ground systems during a live-fire exercise earlier this month.

The Army recently held an industry day on the Ground Mobility Vehicle program:

Army presents GMV timeline at industry day

During an industry day held last week, the Army outlined its plan for the Ground Mobility Vehicle, which involves modifying an existing commercial vehicle to meet the service's need for increased mobility and agility on the battlefield.

Document: Army GMV industry day presentations


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

The DOD IG will be looking into the Army's contracting practices:

Army's contracting practices face scrutiny from inspector general

The Defense Department inspector general plans to issue a report this month on "the Army's use of firm fixed-price, level-of-effort term contracts" -- a move that follows several recent reports on the service's contracting and financial management practices.

Presenting in Huntsville
By John Liang
August 16, 2016 at 4:47 PM

A number of missile defense contractors are showcasing their wares this week in Huntsville, AL, at the annual Space and Missile Defense Symposium.

Among them, Northrop Grumman said this week that in its most recent flight test, the Integrated Air and Missile Defense (IAMD) Battle Command System (IBCS) successfully used sensors and interceptors from different air defense systems, selecting from different missile types to defeat multiple threats arriving at the same time.

"The IBCS is key to a revolutionized IAMD and crucial to the Army vision for an IAMD command and control capability across all echelons and AMD assets," a Northrop statement reads.

Leidos completes merger with Lockheed’s IT services business
By Marjorie Censer
August 16, 2016 at 3:31 PM

Leidos said today it has completed its merger with Lockheed Martin’s information systems and global solutions business.

The company also announced the election of three new directors to its board: Gregory Dahlberg, Surya Mohapatra and Susan Stalnecker.

The merger creates a 33,000-employee government services business with about $10 billion in annual sales.

Dahlberg oversaw Lockheed Martin’s Washington operations from 2009 to 2015. He also previously served as minority staff director of the House Appropriations defense subcommittee and as Army under secretary.

Mohapatra previously worked as chief executive of Quest Diagnostics and has spent more than 30 years in the health care industry. Stalnecker worked at science and engineering company E.I. du Pont de Nemours & Co. from 1977 to 2016

Under the deal, Lockheed received a $1.8 billion special cash payment. Lockheed stockholders who participated in the exchange offer received a nearly 51 percent stake in Leidos.

For full coverage of the deal, check out our latest stories:

Following Lockheed deal, Leidos to operate with five business groups

As Lockheed deal advances, Leidos prepares for new business units

Lockheed: One review of competition impact remains for Leidos deal

After following similar path, defense contractors stake out different strategies

The INSIDER daily digest
By John Liang
August 15, 2016 at 3:16 PM

A disputed Thule Air Base maintenance contract and sea-based unmanned aerial systems are among the highlights in this Monday INSIDER Daily Digest.

The legal dispute regarding a Thule Air Base maintenance contract keeps rolling along:

Following appeals decision, protesters in Thule case file petitions for rehearing

The lengthy fight over a contract to provide base maintenance services at Thule Air Base, Greenland, continues following the U.S. Court of Appeals for the Federal Circuit's June decision.

Document: Danish companies' legal petitions on Thule maintenance contract

Keep an eye out in the coming months for a Marine Corps sea-based unmanned aerial system with strike capability:

Marines on track to field large, sea-based UAS pending JROC approval

The Marine Corps plan to field a large, sea-based unmanned aerial system with strike capability is making its way through the joint requirements process and is on track for Pentagon approval by the beginning of fiscal year 2017.

More unmanned system news, this time from the corporate front:

Kratos CEO: Unmanned systems business set to double in size within two years

Kratos Defense & Security Solutions' unmanned systems business, buoyed by several new contracts, is set to double its sales over the next two years, according to the company's chief.

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

The Marine Corps will soon be getting a bunch of MRZR vehicles:

Congress approves Marine Corps purchase of 144 Polaris MRZRs

Congress has approved a $9.5 million reprogramming action allowing the Marine Corps to buy 144 Polaris MRZRS as part of a new-start "utility task vehicle" program.

The Army recently held a military vehicle industry day:

Army official says MPF remains 'top priority'

Plans for the Mobile Protected Firepower program, designed to provide Infantry Brigade Combat Teams with long-range, precision fire capabilities, were unveiled at an Aug. 9 industry day, Col. William Nuckols, director of mounted requirements at the Army's Maneuver Center of Excellence, told Inside the Army last week.

Document: Army GMV industry day presentations

Cubic hires Terry
By Marjorie Censer
August 15, 2016 at 12:49 PM

Cubic Global Defense said today it has named retired Army Lt. Gen. James Terry senior vice president for business development of ground strategy.

Terry spent more than 37 years in the Army, retiring as commanding general of U.S. Army Central Command.

"Terry will focus on expanding business opportunities for Cubic's ground training systems and services for the Army, Marine Corps, Special Operations and the Middle East region," the company said. "He will also be tasked with improving marketing communications as well as managing business teams to cross-sell Cubic products in foreign and domestic regions."

Compensation packages
By John Liang
August 15, 2016 at 12:05 PM

Senior civilian Defense Department personnel who work in science and technology and are frequent recruitment targets for private-sector companies now have a clearer way of getting better compensation from the government.

The White House Office of Management and Budget and the Office of Personnel Management recently clarified the way in which those civilian personnel can get bonuses for jobs well done.

In a December 2015 executive order, "the President stated that starting in Fiscal Year (FY) 2017 agencies should limit their aggregate spending on agency performance awards for SES and SL/ST employees to 7.5 percent," an Aug. 12 OMB/OPM joint memo states. "Prior to 2010, there was no spending limit on SL/ST performance awards and the statutory limit of 10 percent applied to SES performance awards. The President also stated that agencies should grant awards in a manner that provides meaningfully greater rewards to top performers."

The Aug. 12 memo "advises that agencies should allocate awards made under the new recommended limit to be able to reward and retain more top performers by: providing substantial monetary awards for the very best SES and SL/ST performers; and allowing more variance of award amounts among rating levels, which is a common attribute of pay-for-performance systems."