The Insider

By John Liang
June 30, 2016 at 4:55 PM

The Air Force's LRSO program leads off this Thursday INSIDER Daily Digest:

The LRSO program has undergone another small delay:

Air Force now eyeing August for LRSO milestone A decision

The Air Force hopes to secure a blessing by August from Pentagon leaders -- previously expected in June -- to launch the Long-Range Standoff Weapon acquisition, another slight delay to the anticipated competition to develop and procure a fleet of about 1,000 new cruise missiles designed to carry nuclear warheads the service believes could cost about $8.3 billion.

Document: DOD report to Congress on the LRSO program

There are fewer security clearances than in previous years:

New report shows number of security clearances declined in 2015

The number of government and contractor employees with security clearances fell to 4.2 million in fiscal year 2015, down more than 900,000 from two years earlier, according to a new report from the office of the director of national intelligence.

Document: DNI report on security clearance determinations

Keep an eye out for a DARPA proposers' day for a reusable hypersonic propulsion system:

DARPA plans proposers' day for reusable hypersonic propulsion system

The Pentagon's advanced research arm intends to hold a proposers' day next month for a program that seeks to develop and demonstrate a reusable propulsion system for hypersonic aircraft that can affordably and safely transition from moving at low speeds to faster than the speed of sound.

Document: DARPA AFRE proposers' day announcement

A group of anti-war and anti-debt advocacy organizations don't like DOD spending OCO money:

Advocacy groups oppose OCO-to-base funding shift

A letter has been drafted by a team of anti-war and anti-debt advocacy organizations from across the political spectrum encouraging members of Congress to oppose a controversial funding maneuver in the fiscal year 2017 defense authorization bill.

Document: Anti-war, anti-debt groups' letter on the FY-17 defense policy bill

The Pentagon's IG office is looking at DCAA's quality control system:

DOD IG launches review of DCAA's quality control system

The Pentagon's inspector general's office recently launched a review of the Defense Contract Audit Agency to see if it is complying with its quality control system.

Document: DOD IG memo on DCAA audit

By Tony Bertuca
June 30, 2016 at 1:45 PM

Defense Secretary Ash Carter today announced that transgender people will now be able to openly serve in the U.S. military.

"This is the right thing to do for our people and for the force," Carter said in prepared remarks released by the Pentagon. "We're talking about talented Americans who are serving with distinction or who want the opportunity to serve. We can't allow barriers unrelated to a person's qualifications prevent us from recruiting and retaining those who can best accomplish the mission."

The new policy will be phased in over the course of the next year, in which the Pentagon will finalize "a construct by which servicemembers may transition gender while serving, sets standards for medical care and outlines responsibilities for military services and commanders to develop and implement guidance, training and specific policies in the near and long-term," according to a Defense Department statement.

"At one year, the services will begin allowing transgender individuals to join the armed forces, assuming they meet accession standards," the statement reads. "In addition, an otherwise-qualified individual’s gender identity will not be considered a bar to admission to a military service academy, or participation in the Reserve Officers' Training Corps or any other accession program if the individual meets the new criteria.

Carter said the new policy would likely impact 2,500 active-duty and 1,500 reserve servicemembers.

"Also, right now, most of our transgender servicemembers must go outside the military medical system in order to obtain medical care that is judged by doctors to be necessary, and they have to pay for it out of their own pockets," he said. "This is inconsistent with our promise to all our troops that we will take care of them and pay for necessary medical treatment."

By Courtney McBride
June 30, 2016 at 12:00 PM

Late Wednesday, the Senate confirmed a long list of Defense Department nominees, including incoming Air Force Chief of Staff Gen. David Goldfein and Vice Chief Gen. Stephen Wilson, and Air National Guard Gen. Joseph Lengyel to serve as chief of the National Guard Bureau.

The Senate also approved the promotion of Marine Corps Gen. Thomas Waldhauser to lead U.S. Africa Command, succeeding Army Gen. David Rodriguez. Waldhauser currently serves as the director for joint force development, J7, on the Joint Staff.

Goldfein, who previously served as the Air Force's vice chief, will succeed retiring Gen. Mark Welsh in the top post. Wilson has served as deputy commander of U.S. Strategic Command since July 2015.

Lengyel, who previously served vice chief of the National Guard Bureau, will succeed Army Gen. Frank Grass.

By Marjorie Censer
June 30, 2016 at 11:30 AM

CACI International is focused on integrating and applying technology that is, in many cases, developed by others, not in spending significant internal funds on development, the company's chief executive said today.

Speaking at an investor day in New York, Ken Asbury described the company's spending in this area as "modest at this point in time and very focused."

He noted that the company has invested in its SkyTracker product, a set of sensors and processing systems that can identify drones in the air or on the ground as well as track down their handsets.

But, the company frequently relies on the investments of others, Asbury said. For example, it might help companies like Adobe or Amazon Web Services integrate their technologies into the government.

"The solutions that we're talking about are not necessarily home-grown; they would be home-integrated," he said.

Asbury said this effort might prove useful, given the Pentagon's focus on reaching Silicon Valley.

"The folks in Silicon Valley are not going have the mission understanding," he said. CACI will "use somebody else's technical development. We'll invest in the systems integration skills."

By Tony Bertuca
June 30, 2016 at 11:00 AM

A few must-reads from this week's edition of Inside the Pentagon:

1. As potential adversaries like Russia increase their anti-access, area-denial capabilities, NATO nations should consider pursuing a similar path, according to retired Air Force Gen. Philip Breedlove, the former supreme allied commander for Europe.

Full story: Breedlove: NATO should consider creating independent A2/AD capabilities

2. A congressionally mandated panel on technical data rights, which has met twice so far, is seeking public input, according to a new Federal Register notice.

Full story: Technical data panel, gearing up for summer meetings, seeks industry input

3. The Pentagon's inspector general's office recently launched a review of the Defense Contract Audit Agency to see if it is complying with its quality control system.

Full story: DOD IG launches review of DCAA's quality control system

By John Liang
June 29, 2016 at 4:23 PM

Coverage of NATO's future capabilities leads off this Wednesday INSIDER Daily Digest:

The former supreme allied commander for Europe spoke this morning about NATO:

Breedlove: NATO should consider creating independent A2/AD capabilities

As potential adversaries like Russia increase their anti-access, area-denial capabilities, NATO nations should consider pursuing a similar path, according to retired Air Force Gen. Philip Breedlove, the former supreme allied commander for Europe.

U.S. Marine Forces Command chief Lt. Gen. John Wissler spoke at a CSIS event this morning:

Marines will send ARG/MEU to southern Asia in FY-19

Despite an amphibious warship shortfall, the Marine Corps plans to send an Amphibious Ready Group and Marine Expeditionary Unit to southern Asia in fiscal year 2019, according to a service official.

Some recent Army news:

Army vice chief touts collaboration with SCO

The Army is "ready to accept any help that others can provide" on Long Range Precision Fires, according to the service's vice chief of staff.

Army inks foreign military sales contract for radios

Following an earlier misstep, the Army recently announced a five-year, potential $1.7 billion contract for foreign military sales procurement of "Harris family of radios, ancillaries, spare parts and services."

Some defense business news tidbits:

Avascent: A&D contractors expect more competition

Avascent consultants said today that a survey of contracting executives shows companies are expecting increased global competition within the next year.

AeroVironment reports sales boost in FY-16

AeroVironment said today sales in the company's fiscal year 2016, which ended April 30, hit $264 million, up 2 percent from the prior year.

SAIC names interim CFO

Science Applications International Corp. has appointed Maria Bishop, the company's corporate controller, as interim chief financial officer while the contractor continues its search.

Lookout adds former DISA director to board

Lookout, a San Francisco-based mobile security company, said this week it has added retired Lt. Gen. Ronnie Hawkins, the former director of the Defense Information Systems Agency, to its federal advisory board.

(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.)

By Tony Bertuca
June 29, 2016 at 1:13 PM

Defense Secretary Ash Carter called Turkish Defense Minister Fikri Işık today to express condolences following the attack on the Istanbul Ataturk Airport that killed 41 people and injured more than 200.

"Secretary Carter strongly condemned the terrorist attack in Istanbul as a cowardly assault on a stalwart NATO ally and enduring partner in our efforts to confront the threat of terrorism," according to a Pentagon statement. "He emphasized that the Defense Department joins with the people of Turkey in mourning the victims of this tragedy, and reaffirmed that the department will work closely and resolutely with Turkish allies to defeat terrorists of any kind."

Carter and Işık agreed to confer again at the upcoming NATO summit in Warsaw, Poland.

By Marjorie Censer
June 29, 2016 at 12:41 PM

Avascent consultants said today that a survey of contracting executives shows companies are expecting increased global competition within the next year.

During a webinar with reporters Wednesday, Jon Barney, managing director at Avascent, said a survey launched in May has received about 100 responses from contracting executives -- from managers through chief executives -- around the world.

The vast majority of respondents, he said, anticipate a more cutthroat market.

"You need to recognize that the competitive landscape is going to continue to grow in intensity," Barney said.

He said the sources of competition are also changing; though the United States remains the most frequently named source of competition, "increasingly we have seen China, Russia coming up . . . as sources of competition."

"Companies need to understand that the global competitive landscape is not just about the U.S. and Western Europe anymore," Barney added.

He noted that the survey found many executives don't feel their organizations are ready to win in this environment. "It's not as simple just to sell a product anymore," Barney said, noting that companies feel they must deliver "solutions."

By Marjorie Censer
June 28, 2016 at 5:23 PM

AeroVironment said today sales in the company's fiscal year 2016, which ended April 30, hit $264 million, up 2 percent from the prior year.

The company attributed the boost to an increase in sales in its unmanned aircraft systems unit.

Profit for the year was just shy of $9 million, up from the $2.9 million in profit the company reported the prior year.

Wahid Nawabi, AeroVironment's chief executive, said during a Tuesday call with analysts that the company's small UAS offerings continue to serve "as the main driver of our overall business."

He said the company had a record year in its international sales of small UAS. That work, he said, provides "significant future growth potential for the business."

By Marjorie Censer
June 28, 2016 at 4:51 PM

Science Applications International Corp. has appointed Maria Bishop, the company's corporate controller, as interim chief financial officer while the contractor continues its search.

She takes over from John Hartley, whose departure was announced in March. Hartley will remain with the company until October.

Bishop has worked for SAIC since 1998 and has been part of the corporate finance team for the last decade, the company said.

By Marjorie Censer
June 28, 2016 at 4:31 PM

Lookout, a San Francisco-based mobile security company, said this week it has added retired Lt. Gen. Ronnie Hawkins, the former director of the Defense Information Systems Agency, to its federal advisory board.

Hawkins is president of the Hawkings Group. He also previously served as the Joint Staff's deputy director for command, control, communications and computer systems.

The news was first reported by GovConWire.

By John Liang
June 28, 2016 at 4:23 PM

News about the recommendations from the Commission on the Future of the Army leads off this Tuesday INSIDER Daily Digest.

Top Army officials will soon be meeting with the SECDEF about an influential commission's recommendations:

Army leaders to huddle with Carter on budget plans

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

The Senate Armed Services Committee held a hearing this morning on improving DOD's "strategic integration":

McCain and Senate panel turn to McChrystal for Pentagon management advice

Senate Armed Services Committee Chairman John McCain (R-AZ) sought to defend his effort to alter the Pentagon's management structure to include more "cross-functional teams" during a Tuesday hearing with a panel of management experts, including retired Gen. Stanley McChrystal.

Document: Senate hearing on improving DOD's strategic integration

Keep an eye out for upcoming meetings of a technical data rights panel:

Technical data panel, gearing up for summer meetings, seeks industry input

A congressionally mandated panel on technical data rights, which has met twice so far, is seeking public input, according to a new Federal Register notice.

Document: DOD notice on technical data restrictions

The Navy's top uniformed lawyer spoke today about China and the legality of that country's territorial claims over parts of the South China Sea:

Navy JAG: Beijing's South China Sea claims 'vague, undefined,' not supported by evidence

The People's Republic of China's claims over significant swaths of the South China Sea are "vague, undefined" and not supported by "abundant historical evidence," according to the U.S. Navy's highest-ranking uniformed legal counsel.

The Army could be overhauling its aviation platforms soon:

Army targets MDD on Future Vertical Lift

The Army has asked the Office of the Secretary of Defense for permission to proceed with its signature overhaul of aviation platforms, according to the program manager for the Improved Turbine Engine Program and Future Vertical Lift.

Looks like the Navy's budding "distributed lethality" initiative is taking root:

Fleet Forces chief: Distributed lethality becoming more of a 'fleet concept'

The four-star admiral in charge of U.S. Fleet Forces Command says the Navy's budding "distributed lethality" initiative is becoming more embraced as a "fleet concept" through doctrine, exercises and training.

By Lee Hudson
June 28, 2016 at 2:25 PM

Marine Attack Squadron-211 will be officially redesignated as the Marine Corps' second Joint Strike Fighter operational squadron on Thursday, the service announced this week.

Up until now, VMA-211 had been an AV-8B Harrier squadron. The short-takeoff-and-vertical-landing F-35B is slated to replace the Marine Corps' aging Harrier fleet. The AV-8B Harrier was designed to attack and destroy surface and air targets, escort helicopters, engage in air-to-air defense, provide reconnaissance and apply offensive and defensive support with its arsenal of missiles, bombs and an onboard 25 mm cannon.

"The squadron flew its final flights with the AV-8B Harrier May 6 and received its first two F-35B aircraft May 9," a June 28 Marine Corps statement reads. "The F-35 Joint Strike Fighter is a supersonic, multi-role, multi-service aircraft that represents a quantum leap in air dominance capability. It combines next-generation fighter characteristics of radar evading stealth, supersonic speed, fighter agility and advanced logistical support with the most powerful and comprehensive integrated sensor package of any fighter aircraft in history to provide unprecedented lethality and survivability."

By Lee Hudson
June 28, 2016 at 10:54 AM

BAE Systems has been awarded a $10.8 million foreign military sales contract to provide two Assault Amphibious Vehicles for Japan.

The firm-fixed-price contract will allow BAE to provide the material and technical engineering to build, integrate, test and deliver one AAV command variant and one AAV recovery variant, according to a June 22 contract announcement.

If all options in the contract are exercised, the value will increase to $11 million. All of the work will be performed at an Anniston, AL, facility and completed by June 2019.

"We are proud to provide continued support to the Japanese Ministry of Defense through this latest Assault Amphibious Vehicle (AAV) acquisition. As the original equipment manufacturer of the AAV fleet, we have a strong history of supporting this platform and have already begun work on building new vehicles for the Japanese military," BAE Systems spokeswoman Megan Mitchell wrote in a June 24 statement to Inside Defense. "These key vehicles will provide specialized support within the fleet and supports the ongoing development of amphibious capability within the Japanese Ground Self Defense Force."

Inside Defense reported in April that BAE Systems was awarded a direct commercial sale contract to produce 30 new Assault Amphibious Vehicles for Japan, which supports the country's goal of establishing an Amphibious Rapid Deployment Brigade by 2018.

The new brigade will be equipped with AAVs and MV-22 Ospreys. BAE has worked on this contract for the last three to four years.

"We're proud to support the Japanese military's recapitalization by providing this enhanced amphibious capability," Dean Medland, vice president of programs at BAE Systems' Combat Vehicles unit said in an April statement. "As the original equipment manufacturer of the AAV fleet, we have a strong history of supporting this platform."

BAE Systems will provide 30 new AAV7A1 Reliability, Availability, and Maintainability/Rebuild to Standard (RAM/RS) vehicles, plus supply tools and test equipment to support maintenance. The company will also provide training aids for the vehicles to the Japanese military, according to the statement.

The company is prepared to produce additional AAVs for Japan beyond the 30-vehicle buy, according to an April 6 statement to Inside Defense.

The AAV7A1 RAM/RS variant provides a more powerful engine and drive train, as well as an upgraded suspension system, allowing the new vehicles to meet or exceed original AAV7A1 performance. The variant also provides improved mobility, command, control and repair capabilities while transporting troops and cargo from ship to shore, the statement reads.

Work on the contract will take place at BAE Systems' facility in York, PA. Production is expected to begin in August with vehicle deliveries beginning one year later. Final delivery to Japan is expected to take place by the end of 2017.

By John Liang
June 27, 2016 at 4:30 PM

Truck-based laser systems, corporate cybersecurity and more highlight this Monday INSIDER Daily Digest.

Keep an eye out for a test next year of a truck-based laser system against small drones:

Walsh: Marines could team up with Army on laser program

The Office of Naval Research will test a truck-based laser system against small drones next year, as the Marine Corps eyes potentially transitioning the weapon into a joint program of record with the Army, according to a top Marine general.

Inside Defense spoke with the head of cybersecurity company Tresys Technology:

Private equity-owned Tresys seeks growth -- but not through acquisitions

Cybersecurity company Tresys Technology, which was purchased by a private-equity firm in 2013, is aggressively pursuing growth, but not through acquisitions, the company's chief executive tells Inside Defense.

The Army's program executive officer for command, control, communications-tactical is still having trouble integrating new technologies into the programs he oversees:

Army PEO highlights barriers to innovation

At a time when Defense Secretary Ash Carter is courting Silicon Valley and others outside the department's traditional orbit, one Army program executive officer outlined some challenges with integrating innovative technologies.

The Army's chief information officer recently outlined his office's major lines of effort:

Army CIO touts benefits of network modernization

The Army's pursuit of readiness takes many forms, including an ongoing push for network modernization, according to its chief information officer.

The Navy wants to start using the recently launched fifth MUOS satellite's capabilities soon:

Military planning early use of new MUOS waveform later this year

The fifth Mobile User Objective System satellite was launched into orbit last week, as Navy officials are working to gain approval to begin using the system's new waveform later this year.