Thursday, April 25, 2024
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The Senate voted this morning to end debate on the fiscal year 2017 defense authorization bill, setting up a final vote for early next week.
The Senate needed 60 votes to end debate on the bill and ultimately voted 68-23 to do so.
A congressional staffer said a final vote on the bill could happen as early as Monday evening.
Some must-reads from this week's issue of Inside the Air Force:
1. The Air Force plans to award engine-makers Pratt & Whitney and General Electric contracts this summer to perform key advanced propulsion technology transition work.
Full Story: Air Force eyeing advanced engine prototype awards this summer
2. Three Senate lawmakers are pushing for the cancellation of the Long-Range Standoff Weapon with a recent amendment to the fiscal year 2017 defense policy bill that would fence off funding for the weapon and its warhead.
Full Story: Senate amendment would prohibit funding for LRSO and W80 warhead LEP
3. The Air Force is looking to capitalize on its Space-Based Infrared System and weather capabilities by standing up a new laboratory where industry and academia can help develop new applications for the data the satellite systems generate.
Full story: New remote sensing lab to help USAF better exploit SBIRS, weather data
AWACS, Huey helos and the FY-17 defense policy bill are among the highlights in this Thursday INSIDER Daily Digest.
A new Air Force report recommends speeding up an AWACS upgrade effort:
New air superiority plan calls for work on AWACS follow-on to commence in 2018
A new Air Force report calls for an AWACS follow-on capability to begin in 2018, citing concern that the current E-3 Sentry fleet -- the venerable airborne early warning system that began service in 1977 and is currently receiving a $2.6 billion upgrade -- will not remain viable against projected threats in 2030.
The nation's ICBM force might need more security:
Joint Staff evaluating interim capability for Huey ICBM mission
While Congress debates the acquisition strategy for the UH-1N Huey helicopter replacement, the Joint Staff is evaluating a request from U.S. Strategic Command for more forces to help maintain security at intercontinental ballistic missile sites.
Looks like Sen. McCain's OCO amendment isn't going anywhere:
Effort to increase defense spending voted down by Senate
An amendment spearheaded by Senate Armed Services Committee Chairman John McCain (R-AZ) to increase the Defense Department's overseas contingency operations budget by $18 billion in the fiscal year 2017 defense policy bill was voted down by the full Senate today, along with an amendment offered by Democrats to increase domestic spending by the same level.
Keep an eye out later this month for a DARPA proposers' day on a particularly interesting computer program:
DARPA eyes proposers' day for Dispersed Computing program
The Pentagon's advanced research arm intends to hold a proposers' day later this month for a computing program that seeks "revolutionary techniques that will demonstrate the value of in-network programmability" in advance of a planned broad agency announcement, according to a recent notice on Federal Business Opportunities.
Document: DARPA dispersed computing proposers day announcement
A proposed DOD rule on counterfeit parts has been met with industry support:
Industry supports proposed DOD rule that helps recoup counterfeit costs
The defense industry supports a proposed Defense Department rule that would provide contractors with more safe harbors for cost reimbursement if they discover counterfeit parts in their supply chains, but industry advocates still have concerns about execution of the new policy.
Document: DOD's proposed counterfeit electronic parts cost reimbursement rule
The GOP unveiled a new national security agenda:
Acquisition reform key to GOP's new national security agenda
The Republican Party is set to roll out a new national security agenda today and specifically lists acquisition reform as a key priority.
Document: GOP's national security plan
The Professional Services Council and Grant Thornton today released their annual acquisition policy survey.
The biennial study, now in its eighth edition, reflects interviews with 80 federal officials, including senior acquisition executives, contracting professionals, congressional staff and members of the oversight community.
This year's survey reported "mixed results" when it comes to the acquisition workforce.
"More than a competency gap, this year's interviewees expressed concern about a capacity gap, wherein the existing workforce, however skilled it may be, simply does not have the time and resources to keep up with demand," the document reads. "The government also continues to suffer from a capability gap when it comes to hiring, training, and retaining acquisition workers, particularly in the face of ongoing retirements of seasoned contracting professionals. All of these factors contribute to an apparent confidence gap, as workers remain unprepared or unwilling to take well-reasoned risks to exploit potential innovations or cost savings, instead defaulting to familiar, often suboptimal, strategies, practices, and even outcomes."
Additionally, the report noted continued issues with open communication and with innovation.
"On the whole, respondents are concerned the government does not have a consistent, successful strategy for soliciting, evaluating, and contracting for innovative ideas from industry, whether in the 'traditional' or 'cutting-edge' contracting space," the document states. "In fact, the government often views the traditional contracting base as being mutually exclusive from innovative offerors."
The survey also called on policymakers and oversight bodies to better understand the effects of their requirements on the acquisition system.
The Aerospace Industries Association said today it participated in a meeting with the Trump campaign "to brief Mr. [Donald] Trump on issues of importance to our industry."
"As the voice of American aerospace and defense, 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 organization said in a statement. "AIA has also been in contact with the Clinton campaign regarding a similar opportunity to brief Secretary [Hillary] Clinton."
AIA noted that it has developed position papers distributed to congressional and presidential campaigns and welcomes the opportunity to "brief any active campaign on our priorities."
However, the group is "strictly non-partisan" and "is not permitted -- expressly or by implication -- to endorse candidates for political office," the statement adds. "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 Danish parliament has approved its government's recommendation to purchase 27 F-35A conventional-takeoff-and-landing aircraft, which makes the country the seventh partner nation to buy the Joint Strike Fighter.
Denmark concluded the JSF will replace F-16 combat aircraft as an investment to protect the country in the future, according to a June 9 Lockheed Martin statement in which the company provided an English translation of the Danish government's announcement.
"The acquisition continues Denmark's current operational capabilities in fighter aircraft and ensure[s] that Denmark continues to have freedom of action and ability to assert Danish sovereignty, the ability to be deployed in international operations in line with the commitments in relation to NATO's demands and ultimately contribute to NATO's collective defense of Danish and allied territory," according to the Danish government.
Denmark considered replacing the F-16 with the Eurofighter Typhoon, Boeing's F/A-18F Super Hornet or Lockheed's F-35A.
Vectrus is focusing on winning major recompetitions, including one program that makes up 30 percent of its total revenue, the company's chief financial officer said today.
Speaking at the Drexel Hamilton conference in New York, Matt Klein said the defense contractor has four major programs being consolidated into three that are coming up for recompetition. In sum, the three programs "make up over 50 percent of our business today," he said.
Receiving particular attention is the Kuwait-Base Operations and Security Support Services or K-BOSSS program, which represents about 30 percent of the contractor's revenue. Klein said Vectrus had received extensions, and the program is now set to end at the close of 2016.
Vectrus also pointed to recompetitions of the Army Prepositioned Stocks-5 Kuwait/Qatar and Maxwell Base Operating Services programs.
Klein said the company "feel[s] good about each one of these contracts."
"Once we win these recompetes . . . the revenue is going to be very stable for five years plus," he added.
United Technologies said this week that retired Army Gen. Lloyd Austin, former commander of U.S. Central Command, has been elected to its board of directors, effective Sept. 1.
Austin retired in May after four decades in the military, including serving as commander of United States Forces-Iraq and as vice chief of staff of the Army, UTC said.
Some must-reads from this week's edition of Inside the Pentagon:
1. The White House Office of Management and Budget will recommend that President Obama veto the Senate Armed Services Committee's version of the fiscal year 2017 defense policy bill if it arrives on his desk in its present form, according to a 21-page statement of administration policy released Tuesday.
Full story: White House threatens to veto Senate defense policy bill
2. The defense industry supports a proposed Defense Department rule that would provide contractors with more safe harbors for cost reimbursement if they discover counterfeit parts in their supply chains, but industry advocates still have concerns about execution of the new policy.
Full story: Industry supports proposed DOD rule that helps recoup counterfeit costs
3. The Pentagon's advanced research arm intends to hold a proposers' day later this month for a computing program that seeks "revolutionary techniques that will demonstrate the value of in-network programmability" in advance of a planned broad agency announcement, according to a recent notice on Federal Business Opportunities.
Full story: DARPA eyes proposers' day for Dispersed Computing program
4. The Pentagon's No. 2 official has tasked an influential advisory panel with helping to ease the Defense Department's transition following the presidential election in November.
Full story: Work: DBB to provide insight to help with transition following election
A new variant of the Aegis Weapon System radar, U.S.-Swedish military cooperation and the FY-17 defense policy bill are among the stories highlighted in this Wednesday INSIDER Daily Digest.
The Missile Defense Agency wants to develop a new variant of the radar that's part of the Aegis Weapon System:
MDA optimizing Aegis for new Air and Missile Defense Radar-equipped Flight III destroyers
The Missile Defense Agency is laying the groundwork for a major enhancement of the nation's sea-based ballistic missile defense capability: The development of a new variant of the Aegis Weapon System optimized for the Navy's most advanced guided-missile destroyer.
Document: MDA RFI on Aegis Weapon System BMD 6
The U.S. and Swedish militaries want to work more closely together:
U.S. bolsters security ties with Sweden
The United States and Sweden have agreed to a new security partnership that emphasizes enhanced military posture in the Baltic Sea region amid continued international fears of Russian military aggression.
Document: U.S.-Swedish 'statement of intent' on military cooperation
More coverage of the FY-17 defense policy bill:
Democrats offer amendment to complement McCain's proposed OCO increase
Senate Democrats are offering an amendment to the fiscal year 2017 defense authorization bill that would increase domestic spending by $18 billion to balance a similar increase sought by Sen. John McCain (R-AZ) that would boost the Pentagon's overseas contingency operations budget.
Document: Senate democrats' domestic spending amendment
OMB pushes back on Senate authorizers' B-21, space launch provisions
The White House budget office this week released a sweeping rejection of several provisions in Senate authorizers' fiscal year 2017 defense policy bill, including those that would place additional cost oversight on the B-21 bomber program, restrict the Air Force's Evolved Expendable Launch Vehicle program and call for broader use of enlisted pilots in the remotely piloted vehicle enterprise.
Document: Statement of administration policy on Senate FY-17 defense policy bill
Keep an eye out for a report from an industry-government technical data panel:
Industry-government technical data panel convenes first meeting
A congressionally mandated panel on technical data rights held its first meeting Tuesday, laying the groundwork for a report on the matter due to the defense secretary by Sept. 30.
ONR wants to develop a "mother ship" for unmanned vessels:
Navy researchers want 'mother ship' for refueling unmanned vessels
The Office of Naval Research is seeking outside help to develop an automated ship capable of refueling and transferring data from unmanned surface vessels at sea, according to a recent broad agency announcement.
Document: Navy BAA on offboard refueling and data transfer for unmanned surface vehicles
A new DOD IG report is out:
DOD IG claims the Navy overpaid by $2.1M for ScanEagle spare parts
The Pentagon's watchdog agency claims the Navy overpaid by $2.1 million on sole-source spare parts for the ScanEagle unmanned air system following an audit conducted from June 2015 through March 2016.
Document: DOD IG report on ScanEagle spare parts
Looks like eight shipbuilders will be competing to design the next-generation surface connector:
Navy awards eight design contracts for connector replacement program
The Navy recently awarded eight design contracts totaling about $4 million for the surface connector replacement vessels that operates from the service's amphibious assault ships.
The Army is getting better at logistics:
Army G-4: Service 'making progress' on expeditionary logistics
After years in a "comfort zone" based on operations in Iraq and Afghanistan, the Army has "started to turn the table" toward building decisive action readiness, according to the service's deputy chief of staff for logistics.
Leanne Caret, chief executive of Boeing's defense business, today credited the development organization Boeing established last year with improving the company's work on the KC-46 tanker program.
The tanker program has come under increased scrutiny, particularly since the Air Force late last month announced a delay in the program. Dennis Muilenburg, Boeing's chief executive, said earlier this month that Boeing is incorporating a hardware fix into the refueling boom's design after nixing a software fix.
Caret has previously said the tanker program is her top priority and today reiterated the attention she's giving to it.
Speaking at the Deutsche Bank conference in Chicago, she said a key difference between the time of Boeing's bid and today is the creation of the defense group's development organization, modeled on a similar group within the commercial airplane business and focused on keeping programs on budget and on schedule.
"I believe that we're better off on tanker today because of the development organization," she said, contending that the way Boeing is organized helped it quickly pivot to a hardware solution.
The number of sole-source contracts worth more than $20 million the Pentagon has awarded to small business through the 8(a) program has been declining since 2011, the Government Accountability Office reported in a study released today.
At the same time, the number of competitive 8(a) contracts worth over $20 million has increased, according to the report. GAO noted that the decline in sole-source contracts followed the establishment of a requirement that such purchases include written justification.
The 8(a) program is a Small Business Administration initiative focused on growing small businesses.
"DOD contracting officials GAO spoke to overwhelmingly cited an agency-wide emphasis on using competition to obtain benefits, such as better pricing, as a reason for the decline in the use of sole-source 8(a) contracts over $20 million," the GAO report says.
UPDATE June 9, 12:00 p.m.: The Pentagon issued an instruction that "establishes policy, assigns responsibilities, and provides procedures for DOD small business programs."
The services portion of Huntington Ingalls' work "will be bigger and it will be more relevant," Mike Petters, the company's chief executive, said during a Deutsche Bank conference this morning.
He said the company's shipbuilding business is executing well, but Huntington Ingalls is seeking ways to grow.
"Our approach to that is to really rethink through our services business," Petters said at the conference, held in Chicago.
He said in five to 10 years, the company's services work will look different.
"The services piece of our company will be bigger and it will be more relevant," Petters said. "Our services team, I expect, will be developing the kind of customer intimacy and relationships that we have in our Navy business, where there's a relationship there, where our customer's future and our future are bound together."
Huntington Ingalls' differentiator, he added, is "we have the shipbuilding piece sitting as sort of the foundation for everything else."
Booz Allen's innovation focus, a look ahead at this summer's RIMPAC exercise and more highlight this Tuesday INSIDER Daily Digest.
Inside Defense recently sat down for a chat with the head of Booz Allen Hamilton:
Booz Allen CEO: Defense industry has not 'been that great about driving innovation'
Focused on innovation, Booz Allen Hamilton has pursued a closer relationship with technology companies and a more agile approach, the company's chief executive told Inside Defense this month.
A preview of this summer's upcoming RIMPAC exercise:
RIMPAC 2016 to feature amphibious exercises, mine warfare training
The Navy announced the official participants and goals for this summer's Rim of the Pacific exercise last week, including plans to conduct amphibious operations off the coast of Southern California and use a Littoral Combat Ship for mine warfare training.
Readiness is still a challenge for the Army:
FORSCOM chief: Army faces 'challenges' in readiness push
The Army is making some progress toward full-spectrum readiness, but remains "rusty on the fundamentals of fighting a combined arms maneuver," according to the head of Army Forces Command.
The V-22 program will begin developing an aerial refueling system:
Bell-Boeing awarded deal for V-22 aerial refueling system development
The Navy awarded the manufacturers of the V-22 Osprey tiltrotor aircraft a deal late last month to begin developing and integrating an aerial refueling system for the aircraft.
The head of the Army's 21st Theater Sustainment Command spoke recently about setting the right theater of operations:
Gamble: Desired 'end state' critical to setting theater of operations
Setting an operational theater requires "a multifaceted approach" and should begin by answering the question, "setting the theater for what?" according to the head of the 21st Theater Sustainment Command.
The most recent U.S. overflight of Russia under the Open Skies Treaty took place in April, when American aircraft flew over Russia's Arctic and Far East regions, according to a State Department fact sheet released this week.
The most recent flight over Kaliningrad was by Poland last month, the fact sheet states.
The Open Skies Consultative Commission, the implementing body for the Open Skies Treaty, found in its 2016 Compliance Report that "we continue to have serious compliance concerns with several actions taken by Russia, and these issues continue to be raised with Russia in the OSCC, as well as bilaterally," according to the State Department fact sheet.