The Insider

By John Liang
July 6, 2016 at 4:35 PM

News on problems with the tactical wheeled fleet as well as the OCO budget headline this Wednesday INSIDER Daily Digest.

The military's tactical wheeled fleet is having problems with faulty transparent armor ballistic glass:

Marine Corps seeks vehicle transparent armor solution from industry

The Marine Corps is seeking a solution from industry on faulty transparent armor ballistic glass across the tactical wheeled vehicle fleet, Inside Defense has learned.

Document: Transparent armor for MRAP Cougar RFI

Coverage of the ongoing OCO fight:

Smith argues for 'downsizing' national security ambitions, starting with nukes

The House Armed Services Committee's top Democrat has become a vocal opponent of the Pentagon's plans to modernize the nuclear triad, arguing that the United States needs to more smartly prioritize national security spending.

Obama's new Afghanistan troop plan raises fresh budget questions amid OCO fight

President Obama's new plan to leave 8,400 U.S. troops in Afghanistan, which was not immediately accompanied by a plan to pay for them, drew harsh criticism from GOP defense hawks, including House Armed Services Committee Chairman Mac Thornberry (R-TX), who demanded the president immediately submit a supplemental budget request to finance the new strategy.

More of our omnibus reprogramming coverage:

SOCOM cites urgent need for new 'suicide drones'

The Pentagon has alerted Congress that U.S. Special Operations Command has an urgent need to replenish its stock of Lethal Miniature Aerial Missile Systems, often called "suicide drones" because they are essentially small, flying warheads that can be steered by operators with the aid of an onboard camera.

Document: DOD's LMAMS reprogramming request

Keep an eye out for an MDA study on defending Aegis Ashore sites in Europe from aerial attacks:

MDA studying anti-air warfare capabilities for Aegis Ashore sites

The Missile Defense Agency is studying the best way to defend the Aegis Ashore sites in Europe from aerial attacks, U.S. European Command confirmed.

It's still up in the air whether a liaison element between the Navy-Marine Corps team and U.S. Special Operations Command is needed:

Naval forces, SOCOM continue requirement discussion on SOF LE

The Navy and Marine Corps continue to develop relationships with U.S. Special Operations Command through a liaison element, but it has not yet been determined whether the capability is an enduring requirement, according to an official.

A bunch of Army generals met last week:

Army generals convene for 'four-star forum'

The Army's top leaders assembled in Washington last week for a series of high-level conversations.

By John Liang
July 6, 2016 at 4:14 PM

The Army Science Board plans to hold a pair of meetings later this month to discuss five congressionally mandated studies.

The meetings will be held in Irvine, CA, on July 27 and July 28, with the former being closed to the public and the latter being open, according to a July 6 Federal Register notice.

"The purpose of the meeting is for all members of the Board and its subcommittees to meet and present five of six Fiscal Year 2016 (FY16) studies to the voting members for their consideration, deliberation, and vote," the notice reads.

The studies for discussion and vote will be on "The Military Benefits and Risks of the Internet of Things"; "Robotic and Autonomous Systems-of-Systems Architecture"; "Countering Enemy Indirect Fires, Target Acquisition Using Unmanned Aerial Systems, and Offensive Cyber/Electronic Warfare Capabilities"; "Future Armor/Anti-Armor Competition"; and "Army Efforts to Enhance Soldier and Team Performance," according to the notice.

By Tony Bertuca
July 6, 2016 at 11:15 AM

President Obama is ordering 8,400 U.S. troops to remain in Afghanistan through the end of 2016, a departure from plans to draw down to 5,500 driven by a resurgence of Taliban forces.

"Today's decision best positions my successor to make future decisions about U.S. presence in Afghanistan," he said during a White House press conference, flanked by Defense Secretary Ash Carter and Chairman of the Joint Chiefs Gen. Joseph Dunford.

Obama said the U.S. mission to train, advise and assist the Afghan military and government would remain unchanged.

"It is up to Afghans to defend their country," he said. "Because we have emphasized training their capabilities, we have been able to end our major ground war there."

While paying tribute to the more 2,200 Americans who died in the conflict, Obama warned the gains of the past could deteriorate if the United States exits Afghanistan completely. He also stressed that the only path for success must involve reconciliation between the Afghan government and the Taliban.

Obama's announcement comes one day before the NATO summit in Warsaw, where the U.S. government will push for continued support for the Afghan government and military.

"Afghanistan is not a perfect place," he said. "It is going to continue to take time for them to build up military capacity that we sometimes take for granted. The Afghan people will need the partnership of the world, led by the United States, for many years to come."

The administration's plan to pay for the continued troop presence has not yet emerged, though a senior administration official told reporters on a press call that the White House would work with Congress to fund the mission.

"We will engage in discussion with Congress," the official said. "In the past we've always been able to work collaboratively with Congress."

Meanwhile, House Armed Services Committee Chairman Mac Thornberry (R-TX) released a statement criticizing Obama's new strategy and calling for the immediate submission of a supplemental funding request.

"The precision of the president's new Afghanistan troop cap would be comical were its consequences not so tragic for our mission and military readiness," he said. "It is time that the president level with the American people about what it will really take to achieve our goals in Afghanistan, and how much it will cost. The truth is that many thousands more Americans are performing military functions in Afghanistan -- than even the current troop cap authorizes. The president refuses to pay for them, and his budget does not have room for the troops he is committing. For all of the bluster about funding troops in harm's way, it is the president who proposes to extend the vital mission without any resources behind it. The White House must submit a supplemental funding request to accommodate troop levels in Afghanistan immediately."

By Justin Doubleday
July 6, 2016 at 9:00 AM

Naval Sea Systems Command is hosting a small business industry day on Aug. 18 at the Washington Navy Yard, NAVSEA announced last week.

The event will "provide a targeted forum for interested Small Businesses to hear from senior NAVSEA leadership and program executive offices on various NAVSEA programs to create an enhanced understanding of NAVSEA's programs and strategic direction which provide prime and subcontracting opportunities for small businesses," according to the announcement.

While the event is only open to small businesses, the announcement notes this year's forum will include a panel discussion featuring large businesses.

By John Liang
July 5, 2016 at 3:32 PM

Our coverage of the Pentagon's FY-16 omnibus reprogramming request dominates this Tuesday INSIDER Daily Digest.

Leading off with a general overview of the reprogramming request:

DOD seeks blessing from lawmakers to shift $2.6 billion between accounts

The Pentagon is seeking congressional permission to shift $2.6 billion between budget accounts as part of an annual reallocation of funds the U.S. military has in hand, launching five new-start projects, including a new machine-gun round for the F-35 Joint Strike Fighter, adding new capabilities to the Tomahawk cruise missile and an Army study for a new heavy equipment transporter.

Switching to the Navy portions of the reprogramming:

DOD aims to shift more than $630 million for Navy ship, aircraft maintenance

The Defense Department's fiscal year 2016 omnibus reprogramming request seeks to shift more than $500 million in funding for ship maintenance and an additional $129 million to fund Navy aircraft flying hours and depot maintenance.

Pentagon wants $30M cut from Navy's unmanned tanker, citing 'underexecution'

The Pentagon is proposing to cut $30 million from the Navy's future unmanned tanker that will operate from an aircraft carrier due to "underexecution," according to the fiscal year 2016 omnibus reprogramming request obtained by Inside Defense.

(Stay tuned for more coverage of the reprogramming in the coming days.)

The Defense Department recently updated its National Industrial Security Operating Manual:

Pentagon requires contractors to establish insider threat programs

The Pentagon in May published a change to the National Industrial Security Operating Manual that "requires contractors to establish and maintain an insider threat program to detect, deter and mitigate insider threats," according to a Defense Security Service letter on the matter.

Document: DOD's national industrial security program operating manual

Keep an eye out for three "fleet architecture" studies being done by the Navy and some outside analysts:

Analysts developing new fleet designs ahead of updated ship requirement

The Navy and a pair of external groups are developing new concepts for the way the fleet should be designed, organized and postured around the world, as the service determines the number of ships it will require in the future.

Looks like the Army will be moving forward with a new counterfire radar system:

Army unit finds Q-53 radar 'exceptionally reliable' in Iraq deployment

The first operational deployment of the Army's new counterfire radar system was highly successful, according to a commander whose unit recently returned from Iraq.

(Want more C4ISR news? Check out our Check out our Notification Center, where you can sign up to receive email alerts whenever a related story is posted.)

By Marjorie Censer
July 5, 2016 at 3:00 PM

KBR said today it has completed its purchase of Wyle for $570 million, after adjusting for tax benefits. Wyle will now operate as KBRwyle.

"The combined brand 'KBRwyle' maintains continuity for Wyle's existing clients and highlights to KBR's clients and the market that together with Wyle's technical capabilities, KBR's Government Services capabilities and service offerings now span the full spectrum of government mission requirements including research and development, testing, engineering, logistics, deployed operations, and life-cycle sustainment," the company said.

KBRwyle will function as a business unit within KBR's government services business, and KBR said it will "maintain much of its current structure," including its management team.

By Marjorie Censer
July 5, 2016 at 2:58 PM

Vectrus said last month the U.S. Court of Appeals for the Federal Circuit has reversed the decision of the U.S. Court of Federal Claims, handing the company a victory in its pursuit of a contract to provide base maintenance services at Thule Air Base, Greenland.

Last year, the Court of Federal Claims ruled the Air Force could not proceed with the contract, which was awarded to Exelis. Vectrus was spun off from Exelis in late 2014. 

The contract award to Vectrus had generated concern in Greenland and Denmark (Greenland is part of the kingdom of Denmark) because of the company's U.S. headquarters. Danish competitors have contended that a U.S.-Denmark agreement requires the Air Force award the work to a Danish or Greenlandic company.

Vectrus said in the latest statement that the court decision is under seal. "[H]owever, the company looks forward to working with the U.S. Air Force in support of this contract," it added.

By Marjorie Censer
July 5, 2016 at 10:52 AM

Austal Limited, whose U.S. unit builds the Littoral Combat Ship, said Monday an extensive review the company undertook found it will cost more than estimated to build the ship to required standards. As a result, it will record a $115 million "downward adjustment to revenue" in fiscal year 2016.

The company said it undertook an "extensive review . . . to gain greater clarity on the costs associated with building to the revised baseline design and to quantify the impact across the life of the LCS program."

That review found that the cost of building the LCS to meet the shock rating standard and U.S. naval vessel rules "is materially more than what was previously estimated," as is the cost of modifying vessels and components the company has already constructed.

"The cost of modifying vessels and components already built has been exacerbated by the concurrent construction schedule with 10 LCS of a total of 11 LCS under contract at various stages of construction since April 2015," the company said. "Modifications to vessels at an advanced construction phase will be more expensive and difficult to implement than pre-launch modifications or modifications to vessels not yet under construction."

Though the associated cost increases will be split with the Navy up to a ceiling price, Austal said the estimate change means too much revenue and profit has been attributed to completed work. Additionally, work in progress is overstated, Austal said. As a result, the company will lower sales and work in progress in FY-16 by $115 million.

"Austal has initiated discussions with the U.S. Navy about increases in design scope that may improve Austal's position," the company added. "Austal has not recognized any value associated with these discussions in its profit calculations due to the preliminary nature of the process."

By Courtney McBride
July 5, 2016 at 10:29 AM

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

1. Silicon Valley-based Palantir Technologies has filed suit against the Army in the Court of Federal Claims over the Distributed Common Ground System-Army, rebuking the service's "recurring cycle of irrational procurement decisions."

Full story: Palantir files lawsuit alleging 'irrational' DCGS-A procurement strategy

2. The Armored Multi-Purpose Vehicle -- the largest acquisition program in the Army's current modernization portfolio -- cleared an important milestone in June during a review that demonstrated the design for the new personnel carrier is stable, expected to meet performance requirements and can be executed within the service's $13.8 billion plan to replace the M113 fleet.

Full story: Armored Multi-Purpose Vehicle program clears key EMD milestone

3. The Army has delayed until October the start of operational testing -- originally slated to commence in June -- for the $8 billion Paladin Integrated Management program due to earlier quality control issues with the engine.

Full story: Army delays operational testing for PIM until October

4. Army leaders and Defense Secretary Ash Carter recently discussed plans to implement the recommendations of the National Commission on the Future of the Army, which include new investments in aviation.

Full story: Army leaders huddle with Carter on budget plans

By Lee Hudson
July 5, 2016 at 10:27 AM

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

1. The Navy has awarded two companies long-awaited contracts worth a combined value of about $6.3 billion for dock landing ship replacement design as well as detail, design and construction of the LHA-8 and the fleet oiler replacement.

Full Story: Navy awards long-awaited contracts for LHA-8, T-AO(X) and LX(R)

2. The Navy and a pair of external groups are developing new concepts for the way the fleet should be designed, organized and postured around the world, as the service determines the number of ships it will require in the future.

Full Story: Analysts developing new fleet designs ahead of updated ship requirement

3. The Navy and Marine Corps continue to develop relationships with U.S. Special Operations Command through a liaison element, but it has not yet been determined whether the capability is an enduring requirement.

Full Story: Naval forces, SOCOM continue requirement discussion on SOF LE

By Tony Bertuca
July 5, 2016 at 7:00 AM

The week ahead features several House Armed Services Committee hearings on military readiness and Pentagon reform, while committee leaders are scheduled to make public appearances to discuss the fiscal year 2017 defense authorization bill.

Wednesday

Rep. Adam Smith (D-WA) speaks at a breakfast with Washington defense reporters.

The House Armed Services readiness subcommittee holds a hearing on aviation readiness with military officials.

Thursday

House Armed Services Committee Chairman Mac Thorberry (R-TX) is scheduled to speak at the Heritage Foundation.

The House Armed Services Committee will host a panel of outside experts to discuss the path ahead for reforming the Goldwater-Nichols Act.

The House Armed Services seapower and projection forces subcommittee and the Foreign Affairs Asia and the Pacific subcommittee will hold a joint hearing to discuss South China Sea maritime disputes with officials from the Defense and State departments.

By John Liang
July 1, 2016 at 3:47 PM

A lawsuit against the Army's DCGS-A program and a Nunn-McCurdy breach by the Air Force's GPS OCS program lead off this Friday INSIDER Daily Digest.

The Army's DCGS-A program is facing a lawsuit:

Palantir files lawsuit alleging 'irrational' DCGS-A procurement strategy

Silicon Valley-based Palantir Technologies has filed suit against the Army in the Court of Federal Claims over the Distributed Common Ground System-Army, rebuking the service's "recurring cycle of irrational procurement decisions."

Document: Palantir's DCGS-A lawsuit

The Air Force's GPS OCX program has suffered a Nunn-McCurdy breach:

Air Force declares Nunn-McCurdy breach on GPS OCX

The Air Force on Thursday declared a Nunn-McCurdy breach on the Raytheon-built, next-generation Global Positioning System ground component, after determining that the program's cost will spike more than 25 percent above its cost thresholds.

The Navy has finally allocated billions of dollars toward several shipbuilding programs:

Navy awards long-awaited, multibillion-dollar contracts for LHA-8, T-AO(X) and LX(R)

The Navy has awarded the long-awaited contracts to two shipbuilders worth a combined value of about $6.3 billion for dock landing ship replacement design as well as detail, design and construction of the LHA-8 and the fleet oiler replacement.

Another delay to the Army's Paladin Integrated Management program:

Army delays operational testing for PIM until October, slips other program milestones

The Army has delayed until October the start of operational testing -- originally slated to commence in June -- for the $8 billion Paladin Integrated Management program due to earlier quality control issues with the engine.

Document: DOD's 2015 SAR on the Paladin Integrated Management program

The Army's multibillion-dollar AMPV program is gradually moving forward:

Armored Multi-Purpose Vehicle program clears key EMD milestone

The Armored Multi-Purpose Vehicle program cleared an important milestone in June during a review that demonstrated the design for the new personnel carrier is stable, expected to meet performance requirements and can be executed within the service's $13.8 billion plan to replace the M113 fleet.

The Joint Strike Fighter program made news this week:

F-35 JPO eyeing 2018 for Block 4 modernization contract decision

F-35 program officials expect to have a Joint Requirements Oversight Council-approved Block 4 capability development document in hand by late this summer -- a milestone that will solidify follow-on modernization requirements and help set the foundation for the capabilities necessary to operate in the future threat environment.

DOD: RAND revises potential F-35 'block-buy contract' savings downward to $2 billion

A notional three-year Joint Strike Fighter "block-buy contract" between the United States and foreign buyers could net $2 billion in savings, according to a revised assessment of the potential agreement that is lower than a previous $3 billion tally but also accounts for reduced U.S. military participation in such a deal.

Air Force officials highlight gaps in fifth-generation data sharing

As the Air Force prepares to integrate the F-35A into its fleet, the outgoing general in charge of the service's Joint Strike Fighter integration office and one of the Pacific Air Force's top cybersecurity officials are highlighting the need for increased data exploitation and connectivity capabilities for fifth-generation aircraft.

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

More Air Force news:

Air Force, P&W may increase F-22 overhaul rate due to higher utilization

Increased F-22 utilization has the Air Force and Pratt & Whitney considering changes to the Raptor's F119 engine maintenance plan that could increase the peak overhaul rate.

Air Force calling for industry input on SBIRS follow-on architecture

As the Air Force works to obtain an approved acquisition strategy this fall for the follow-on to its Space-Based Infrared System satellite constellation, it's seeking input from industry to help understand industrial base capabilities, address new targets and threats as well as balance its needs for innovative solutions with affordability.

By Courtney Albon
July 1, 2016 at 1:13 PM

The Air Force this week awarded more than $2 billion in advanced engine development contracts to Pratt & Whitney and General Electric.

The contracts, worth more than $1 billion each with options, represent the next phase of the service's Advanced Engine Transition Program. Both companies have been developing and maturing technologies through the service's Advanced Engine Technology Demonstration program since 2011. The AETP contract will provide funding to transition that work into a full prototype engine.

In a July 1 press release, the Air Force's AETP Materiel Leader Lt. Col. Jeff Finch said AETP represents "a revolutionary advance in turbine engine technology."

"Throughout AETP, we look forward to working with both engine manufacturers as they continue maturing fuel-efficient adaptive cycle engine technologies," said Finch. "Our collaborative focus will be reducing associated technical and manufacturing risks in preparation for next-generation propulsion system development for multiple combat aircraft applications."

The program aims to demonstrated 25 percent improved fuel efficiency and a 10 percent increase in thrust.

GE's General Manager for Advanced Combat Engines Dan McCormick said in a June 30 statement the company is "honored to continue our work with AFRL while initiating the next phase of the technology maturation with the [Air Force Life Cycle Management Center], transitioning our learnings as the only engine manufacturer to have successfully tested a full three-stream adaptive cycle engine."

Jimmy Kenyon, Pratt's senior director of advanced programs and technology said in a June 30 release the company's plan "fully embraces the spirit and intent of the U.S. Air Force's goals to provide a highly capable adaptive engine design with the ability to power a wide range of future and legacy aircraft applications."

Pratt demonstrated a three-stream fan in a rig in 2013 as part of the AETD program, the release states.

By Marjorie Censer
July 1, 2016 at 10:28 AM

Shipbuilding company Austal Limited said Thursday it has halted trading on the Australian Securities Exchange, pending a review of its U.S. business, which manufactures the Littoral Combat Ship and the Expeditionary Fast Transport.

In its request to suspend trading, the company secretary wrote that the halt will "enable Austal to complete a review of its U.S. performance and following completion of that review, make an announcement updating guidance on the company’s performance for 2016."

Austal said it will hold an investor teleconference at 9 a.m. Monday to update the market.

A week ago, Austal Limited announced it had delivered the future Montgomery -- the fourth Independence-variant LCS -- to the Navy at the U.S. business' shipyard in Mobile, AL.

By Courtney Albon
July 1, 2016 at 9:00 AM

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

1. The Air Force and F-22 engine-maker Pratt & Whitney are considering increasing the rate at which the company overhauls the Raptor due to increased utilization.

Full story: F-35 JPO  eyeing 2018 for Block 4 modernization decision

2. The Air Force has pushed a Long-Range Standoff Weapon milestone A decision to August.

Full story: Air Force now eyeing August for LRSO milestone A decision

3. In an independent RAND review of potential savings from an F-35 block-buy deal predicted savings at $2 billion.

Full story: DOD: RAND revises potential F-35 block-buy savings downward to $2B