The Insider

By Marjorie Censer
May 26, 2016 at 10:44 AM

CSRA said this week it lost nearly $72 million in its most recent quarter, compared to a $57.7 million profit in the same three-month period a year earlier.

The contractor reported quarterly sales of nearly $1.3 billion, up from $1 billion the prior year.

CSRA was formed less than a year ago when Computer Sciences Corp. spun off its U.S. public-sector business, which was then merged with SRA International.

"Our market is slowly returning to growth," Larry Prior, CSRA's chief executive, said during a call with analysts on Wednesday.

By Tony Bertuca
May 26, 2016 at 10:09 AM

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

1. The Senate Armed Services Committee wants to move the developmental test and evaluation shop under the purview of the director of operational test and evaluation, according to its fiscal year 2017 defense policy bill.

Full story: Senate authorizers want to enlarge influence of DOT&E office

2. The Senate Armed Services Committee wants to continue having the chief of U.S. Cyber Command also serve as director of the National Security Agency, and seeks to prohibit that relationship from being severed until the Pentagon certifies that doing so would pose no risk to national security.

Full story: Senate panel seeks to prevent separation of CYBERCOM, NSA chief duties

3. The Senate Armed Services Committee is seeking to re-energize efforts to develop advanced airlift airship technology and is calling for the defense secretary to establish a strategy for future efforts.

Full story: Senate panel aims to reenergize efforts to develop advanced airlift technology

By Courtney McBride
May 25, 2016 at 4:08 PM

The Army is reaching out to the defense industrial base to provide information on the service's network modernization efforts and “assist industry partners in identifying and aligning their efforts with Army network priorities,” according to a May 24 announcement.

The Program Executive Office for Command, Control and Communications-Tactical plans to host an industry day on June 22 to highlight service priorities and hear private-sector feedback on its programs, which include the Warfighter Information Network-Tactical.

The forum will provide “a leadership overview from the CIO G6 concerning network readiness and modernization priorities, the status of PEO C3T programs, ongoing procurements, and the opportunity to request updates on specific procurements of interest in a question-and-answer format,” according to the Army announcement.

The Army hopes the event “will enhance communication between the Government and our industry partners, enabling them to forge partnerships and respond quicker to critical emerging requirements,” Program Executive Officer for C3T Gary Martin said in the announcement.

The forum, which was announced via a formal notice on the Federal Business Opportunities website, will take place at Aberdeen Proving Ground, MD.

 

By John Liang
May 25, 2016 at 3:48 PM

Coverage of the defense policy bill, contractor protests and the Joint Strike Fighter highlight this Wednesday INSIDER Daily Digest.

Looks like the Senate version of the FY-17 defense policy bill won't be decided this week:

Senate Democrats slow defense policy bill

Senate Democrats, led by Minority Leader Harry Reid (D-NV), are using a procedural tactic to slow down floor debate on the fiscal year 2017 defense policy bill amid allegations that the legislation was marked up in secret.

Don't expect the defense industry to jump with joy over government efforts to "protest-proof" solicitations and awards:

Protest reform ideas abound, but much of industry says, 'No, thanks'

Capitol Hill and the Pentagon are flush with ideas for fixing the bid protest process, arguing that new policies would shrink the number of protests and improve a contracting culture in which government buyers are trying to "protest-proof" their solicitations and awards.

Some news that broke late last night:

Bogdan: F-35 operational testing delayed by six months

F-35 operational testing has been delayed by about six months because the joint program office cannot retrofit 23 jets needed for the test event, according to an official.

Don't count out the Army Reserve:

Army Reserve chief: component is critical to mission success

The Army Reserve continues to face high demands, amid reliance on the reserve component "to meet mission requirements" for the service, according to its outgoing chief.

The Army awarded Lockheed Martin a multimillion-dollar foreign military sales rocket contract:

Lockheed is tapped to make rockets for Israel, Finland, Jordan, Singapore

Lockheed Martin received a $332 million contract from the Army to manufacture Guided Multiple Launch Rocket System rocket pods destined for sale to Israel, Finland, Jordan and Singapore, according to the Defense Department.

China continues to be a big deal:

'Pacific Pathways' participants cite China as top concern

An ongoing series of engagements with partners and allies in the Asia Pacific, designed to boost readiness and interoperability, is taking on new significance in an increasingly contested region.

A NAVAIR official talked about helicopters recently:

NAVAIR emphasizing aircraft readiness in design phase

Naval Air Systems Command is emphasizing reliability and maintenance processes in the design phase of its programs as part of the response to the ongoing readiness crisis in the Marine Corps' helicopter fleet, according to a top program official.

News on a recent Army high-energy laser integration test:

Army hails high-energy laser integration test

Army Space and Missile Defense Command recently completed an "extremely successful" experiment to test the integration of its high-energy laser prototype into a command-and-control environment, according to a service scientist leading the effort.

By John Liang
May 25, 2016 at 2:32 PM

Pentagon Comptroller Mike McCord issued a couple of reprogramming actions this month, with one related to shipbuilding and the other on Army munitions and Navy ISR.

In a May 10 reprogramming action, McCord authorizes the transfer of $94.2 million from the Navy's ship modernization, operations and sustainment fund to various other accounts.

In a separate May 3 memo, McCord authorizes the realignment of funds to buy more M240 machine guns, add money to the "Rotorcraft management program," hybrid projectile technology, and enhanced Navy ISR.

By Marjorie Censer
May 25, 2016 at 12:47 PM

Contractors are focused on diversifying and bracing for cybersecurity threats, according to Deltek's new seventh annual Clarity study, a report on the government contracting industry.

One of the "overarching" messages from this year's study, which had nearly 600 responses, was a reported rise in the success of small businesses, Deltek said.

"Companies <$20M are getting a seat at the table and they are winning," the study states. "In write-in comments, participants pointed to difficulty competing in an environment favorable to small businesses."

The success of these companies, the report adds, is partly because of the government's increased focus on awarding work to small businesses but also a result of lower overhead costs at these companies.

The top business development challenges reported by participants were limited resources and increased competition. To cope, respondents said they are seeking a better understanding of opportunities and their requirements earlier in the process and exploring new markets.

Indeed, the Deltek study found that many companies are seeking to diversify, in state and local work, in commercial markets and in new geographies.

Contractors are also spending more on IT -- up to 9.4 percent of annual revenue from 8 percent last year, according to Deltek. Many large companies reported dramatically increasing their investment in protecting their company from cyber threats.

"The need to ward off growing cybersecurity threats, upgrade and integrate critical systems and support an expanding number of mobile devices means the IT burden is increasing," the report adds.

By Lee Hudson
May 25, 2016 at 11:14 AM

The Congressional Research Service this week issued a report on Navy force structure and shipbuilding plans.

However, the Navy announced in February it is conducting a new force structure assessment because, which could change the number of ships required by the service.

The Navy has a requirement for 308 ships. "The 308[-ship] Navy is based upon a force structure that was set back in 2012 and amended in '14," Vice Adm. Joseph Mulloy, deputy chief of naval operations for integration of capabilities and resources, said during a Feb. 25 House Armed Services seapower and projection forces subcommittee hearing. "At that point a man named [Vladimir] Putin wasn't quite as rampant in the world, the Chinese hadn't grown as big . . . we're going to take a hard look at it."

When reviewing the Navy's fiscal year 2017 shipbuilding budget request potential issues for Congress include the size of the Pentagon's budget, the affordability of the service's 30-year shipbuilding plan and the appropriate future size of the Navy, according to the CRS report first obtained by Secrecy News.

By John Liang
May 24, 2016 at 4:14 PM

Coverage of Senate appropriators marking up the FY-17 defense spending bill and more highlight this Tuesday INSIDER Daily Digest.

The Senate Appropriations defense subcommittee has marked up the FY-17 military spending bill this morning. Our coverage so far:

Senate appropriators shun OCO budget transfer pushed by House

The Senate Appropriations defense subcommittee has approved a fiscal year 2017 spending bill that funds the Pentagon's base and overseas contingency operations budgets requested by the Obama administration, diverging from House appropriators, who seek a $16 billion OCO-to-base transfer.

Senate appropriators recommend $454M plus-up to Israeli BMD programs

The Senate Appropriations defense subcommittee has approved a fiscal year 2017 spending bill that recommends $600 million for Israeli missile defense programs -- $454 million more than the president's request including Iron Dome, Arrow, Arrow Upper Tier and David's Sling and $113.1 million more than what was appropriated in fiscal year 2016.

Document: Senate appropriators' summaries of the FY-17 defense spending bill

Doesn't look like Palantir will be winning its DCGS-A protest:

GAO rejects protest of DCGS-A request for proposals

The Government Accountability Office has denied a protest by Palantir in connection with the Army's Distributed Common Ground System, according to a May 18 post on the GAO website.

Continued coverage of the House and Senate FY-17 defense policy bills:

House bill sets stage for fast-tracking Army, Air Force cyber officers

House lawmakers have passed fiscal year 2017 defense-policy legislation that calls on the Army and Air Force to start pilot programs for recruiting cyber-savvy professionals as commissioned officers.

Senate panel cites DOD for lack of fiscal transparency on Third Offset

The Senate Armed Services Committee remains "wary" of the Pentagon's vaunted "Third Offset" program after repeated attempts to obtain information on the effort -- including a detailed budget breakdown -- proved unsuccessful, according to a report from the committee.

Senate calls on Air Force to examine JSTARS rapid acquisition program office

Senate authorizers have called on the Air Force to deliver options to accelerate the recapitalization of its Joint Surveillance Target Attack Radar System fleet, including alternatives that would push initial operational capability two years ahead of the service's schedule.

Keep an eye out for an upcoming industry day for the Army's FMTV program:

Army plans second industry day in race to redesign medium-lift trucks

Army officials are expected to hold an industry day in June to help finalize the requirements for an upcoming program to redesign the fleet of medium-sized cargo haulers.

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

By Tony Bertuca
May 24, 2016 at 2:56 PM

The Stimson Center has released a report asserting the Pentagon's overseas contingency operations fund is being "misused" and should be phased out.

The report comes as the House appropriators and authorizers have advanced fiscal year 2017 defense bills that would transfer between $16 billion and $18 billion from the Pentagon's OCO account to its base budget to pay for increases in weapon system procurements and other expenses.

"We conclude in this report that the uncertainty created by current reliance on OCO, particularly to fund base budget needs, could be detrimental to national security," according to the Stimson report. "Given the consequences of continued misuse of OCO, we suggest that President Obama and his successor develop and commit to a credible plan to wind down OCO funding beginning with the expiration of the Bipartisan Budget Act in FY-20."

The alternative for transitioning "longer-term OCO expenses to the base budget could be achieved through a combination of increased budget caps, targeted cuts in inefficient defense programs, and increased revenues," the report states.

Read the full report.

By Marjorie Censer
May 24, 2016 at 1:02 PM

SOS International said today David Shedd, the former deputy director and acting director of the Defense Intelligence Agency, has joined its board of advisors.

Shedd, who retired last year, spent more than three decades in the U.S. government, according to SOSi. He previously worked as deputy director for policy in the Office of the Director of National Intelligence and senior director for intelligence programs and reform at the National Security Council.

By Marjorie Censer
May 24, 2016 at 12:03 PM

The defense policy bill approved by the Senate Armed Services Committee calls on the defense secretary to revise the Pentagon's new instruction on services acquisition.

Early this year, the Pentagon unveiled the instruction, creating a new oversight and review structure for procuring services.

According to the legislation, within six months, the defense secretary would need to revise the instruction to offer guidance on how the acquisition community "should consider the changing nature of the technology and professional services markets, particularly the convergence of hardware and services, in its application of the Services Acquisition Categories Instruction."

Additionally, the revision should reflect a review of the categories of services acquisition as well as a review of existing Pentagon services contracts.

The defense secretary would also be required to issue new guidance on the training and development of the acquisition workforce, particularly those involved in buying services, according to the legislation.

The full Senate is expected to consider the bill this week.

By Marjorie Censer
May 24, 2016 at 10:03 AM

AT&T said today that Anthony Robbins, formerly the head of Brocade's federal business, has been named president of public sector solutions-global defense at AT&T Business Solutions.

"In his new role, Robbins will lead the defense industry segment of the AT&T Public Sector Solutions business," the company said. "He will oversee the company's work with the Department of Defense and other global public sector defense organizations."

Robbins also previously worked at Oracle and Sun Microsystems.

By John Liang
May 23, 2016 at 4:02 PM

Coverage of the report accompanying Senate authorizers' FY-17 defense policy bill as well as Air Force aviation programs highlight this Monday INSIDER Daily Digest.

Inside Defense obtained a copy of the report accompanying the Senate Armed Services Committee's FY-17 defense authorization bill. Our coverage so far:

Senate defense policy bill would block GAO protests for task orders

The defense policy bill approved by the Senate Armed Services Committee would not allow bid protests for task and delivery orders if the military names an “ombudsman” to review complaints.

Senate bill would direct Air Force to consider foreign launchers for EELV

Senate authorizers want the Air Force to explore the feasibility of using foreign allied launch vehicles to lift some national security space payloads should the service be unable to use the United Launch Alliance's Atlas V rocket.

Senate authorizers block Navy from installing Advanced Arresting Gear on CVN-80

The Senate Armed Services Committee wants to block the Navy from installing the Advanced Arresting Gear on the aircraft carrier Enterprise until the service entertains alternatives to landing an aircraft aboard a carrier, according to the committee's mark-up of the fiscal year 2017 defense policy bill.

Continuing our coverage of the Air Force's latest aviation plan:

New aviation plan shrinks U.S. military aircraft inventory by 1,407 over next decade

The Defense Department plans to pare back its total aviation inventory by about 10 percent over the next decade, from 14,516 aircraft in the current fleet to 13,109 aircraft by 2026, according to a new Pentagon report on its long-term aviation plans.

Document: Air Force's 2016 annual aviation plan

Some defense business news:

KBR to acquire Wyle to boost 'high growth' work

KBR, the engineering and construction company, said Monday it has agreed to acquire Wyle, which provides engineering and professional services to the Pentagon and other federal agencies.

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

Keep an eye out this coming summer for a Navy test of the MV-22 Osprey as a COD aircraft:

Navy will experiment with V-22s performing carrier deliveries this summer

The Navy will conduct a fleet battle experiment using MV-22 Ospreys to perform the carrier onboard delivery mission off the West Coast in the coming months, according to service officials.

Looks like the Army is back in the electronic warfare business:

Army pushes to close gaps in electronic warfare

The Army may have gotten "out of the business of electronic warfare" after the Cold War, but the service has a renewed focus on the field and is "working to close the materiel gaps" between itself and potential adversaries, says its EW chief.

By Jordana Mishory
May 23, 2016 at 12:23 PM

The Defense Department inspector general's office intends this month to begin auditing how the Defense Information Systems Agency awards contracts, according to a recent memo.

The goal of the audit is to determine whether DISA “awarded contracts in accordance with federal and DOD regulations,” the May 12 DOD IG memo states. “We will consider suggestions from management on additional or revised objectives.”

The DOD IG will conduct the audit at the DISA Defense Information Technology Contracting Organizations at Scott Air Force Base, IL, and Ft. Meade, MD, according to the memo signed by Michael Roark, assistant inspector general for contract management and payments.

By Tony Bertuca
May 23, 2016 at 10:24 AM

More legislation winds it way through Congress this week, with the full Senate slated to take up the defense authorization bill, while the Senate Appropriations defense subcommittee is scheduled to mark up its version of the defense spending bill.

Monday

A date has not yet been set for the full Senate to consider the fiscal year 2017 defense authorization bill, but the Senate Armed Services Committee expects it happen some time this week. Sen. John McCain (R-AZ) has said he will introduce an amendment to increase total defense spending by $17 billion.

Tuesday

The Senate Appropriations defense subcommittee will mark up the FY-17 defense spending bill.

The Stimson Center will hold a panel discussion on “overcoming the challenges of overseas contingency operations.”

Wednesday

Defense Secretary Ash Carter is scheduled to speak at the Naval War College in Newport, RI at 9 a.m..

Thursday

The C4ISR & Networks conference will take place in Arlington, VA, and is scheduled to feature an array of Pentagon officials.

Friday

Carter is scheduled to speak at the commencement ceremony at the U.S. Naval Academy in Annapolis, MD, at 10 a.m..