The Insider

By John Liang
May 10, 2016 at 3:28 PM

The Defense Security Cooperation Agency on May 3 announced the proposed sale to Tunisia of engines and equipment for OH-58D Kiowa Warrior helicopters.

Included in the proposed sale is $100 million worth of navigation systems, missile warning systems, Hellfire missiles and Advanced Precision Kill Weapon System rounds as well as engines, radios and rocket launchers, according to DSCA.

The materials would equip and arm 24 Kiowas the country was "approved to receive . . . via the Excess Defense Articles (EDA) Program under a separate notification," the DSCA statement reads. That previous announcement only included the OH-58D airframes.

DSCA further said:

This proposed sale will contribute to the foreign policy and national security objectives of the United States by helping to improve the security of Tunisia which has been, and continues to be an important force for political stability and economic progress in the North African region. The United States is committed to the security of Tunisia, and it is vital to U.S. national interests to assist Tunisia to develop and maintain a strong and ready self-defense capability.

The OH-58D Kiowa Warrior helicopters along with the parts, systems, and support enumerated in this notification will improve Tunisia’s capability to conduct border security and combat operations against terrorists, including Al-Qaida in the Islamic Maghreb (AQIM), Islamic State in Iraq and the Levant (ISIL) in Libya, and Ansar al-Sharia, Tunisia (AAS-T). These helicopters will further modernize the Tunisian armed forces and increase its interoperability with U.S. forces and other coalition partners. 

Tunisia will have no difficulty absorbing this equipment into its armed forces.

By Sebastian Sprenger
May 9, 2016 at 5:10 PM

General Dynamics Land Systems is getting a $330 million contract to outfit Stryker infantry carriers with 30 mm cannons, the Defense Department has announced.

The pick of GDLS was widely expected because the company is the manufacturer of the vehicle and owns the requisite data packages to make substantial design changes, such as those required by installing the more powerful weapon.

Army officials have said they need the larger gun on the vehicle to destroy lightly armored vehicles. The unit that initiated the lethality upgrade is stationed in Germany, and its Strykers could be dispatched quickly to any flashpoints along the border with the Baltic states and Russia if war were to break out.

According to a May 6 DOD announcement, General Dynamics is expected to complete work under the contract by Jan. 15, 2021. The Army obligated $105 million of the total sum at the time of the award.

The company conducted a turret and gun competition last year on the government's behalf and eventually picked the Kongsberg medium-caliber weapon station that includes an ATK XM813 30 mm cannon. The system also features a coaxial machine gun.

The bill for the German-based Stryker conversions, covering 83 vehicles of the brigade, could top $400 million. The Army has a total of eight Stryker brigades that are candidates for lethality upgrades if the service can secure the money for them.

While the cannon upgrade is now a done deal, Army and industry officials have suggested some details remain to be worked out. Opinions differ, for example, about whether the plan would penalize the troop-transport capability of the infantry carrier version of the vehicle. The remote weapon station setup and the extra ammunition to be stored could eat up space for soldiers in an already cramped vehicle.

By John Liang
May 9, 2016 at 4:13 PM

A new reprogramming action on ISR plus shipbuilding issues highlight this Monday INSIDER Daily Digest.

A new reprogramming action is out:

Pentagon seeks $258M budget transfer to boost ISR

The Defense Department seeks to reprogram $257.7 million to fill intelligence, surveillance and reconnaissance capabilities gaps identified by combatant commanders in the Middle East and Africa.

Document: DOD's $258M ISR reprogramming request

Keep an eye out for shipbuilding issues when the Senate Armed Services Committee marks up the FY-17 defense policy bill:

Shipbuilding topline questions hang in balance ahead of Senate mark

Senate authorizers have expressed support for several shipbuilding initiatives similar to what was included in the House Armed Services Committee's defense policy bill, but how those plus-ups will be funded in the upper-chamber committee's version of the legislation remains a key question ahead of the panel's mark-up this week.

A related document, obtained this morning:

Navy's FY-17 shipbuilding report to Congress

Stay tuned for more coverage of it.

Some cyber news, courtesy of our colleagues at Inside Cybersecurity:

Senator seeks to add cyber 'act of war' language to defense bill

Sen. Mike Rounds (R-SD) this week will attempt to add cybersecurity "act of war" language to the annual defense authorization bill being marked up in the Senate Armed Services Committee.

Document: Senator's cyber 'act of war' amendment

U.S. Army Europe could need more helicopters:

Rotational helicopter force to boost readiness, flexibility for Army Europe

A new rotational aviation brigade will put U.S. Army Europe "in the ballpark" of satisfying its aviation needs, but given a dynamic security situation on the continent, even more could be needed, according to a service aviation adviser.

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

Keep an eye out for an Army study on Russian warfighting tactics:

Study of Russian warfare promises changes in Army acquisition

The Army is synthesizing insights about Russian warfighting tactics into a new study that could change how the service develops new weapon systems, a senior service official said.

The Marine Corps isn't too worried about the F-35's ALIS program:

Marines 'confident' F-35 logistics system is deployable despite GAO report

The Marine Corps remains "confident" in the Joint Strike Fighter's logistics system's ability to deploy and support a full range of military operations although the Government Accountability Office in a recent report discovered that pilots, maintainers and administrators are concerned the system may not be deployable.

Document: GAO report on ALIS risks

By Marjorie Censer
May 9, 2016 at 2:32 PM

Defense Secretary Ash Carter will travel to California and Colorado this week, the Pentagon announced today.

Carter is slated to visit the Defense Innovation Unit Experimental -- or DIUx -- in Palo Alto, CA, where DOD said he will "meet with staff and deliver brief remarks about the future of DIUx, as well as host a breakfast reception for tech leaders."

In Santa Clara, he will join Homeland Security Secretary Jeh Johnson and Commerce Secretary Penny Pritzker at the National Security Telecommunications Advisory Committee and will speak about the Pentagon's emerging technology priorities.

Carter will also travel to Colorado Springs to visit the Joint Interagency Combined Space Operations Center and meet with leadership and troops. At the U.S. Air Force Academy, he will meet with cadets, tour the cyber lab and innovation center and deliver remarks, DOD said.

Carter will also attend the change of command ceremony for North American Aerospace Defense Command and U.S. Northern Command, where Air Force Gen. Lori Robinson will replace Adm. Bill Gortney.

By Courtney Albon
May 9, 2016 at 1:06 PM

F-35 Joint Strike Fighter prime contractor Lockheed Martin has completed the final JSF Block 3i software configuration needed to support the Air Force's initial operational capability declaration for the aircraft.

The F-35 joint program office announced the milestone in a press release today, noting it will begin upgrading the fleet with new Block 3i software this week. The software fixes have also been included in a new release of Block 2B software and will be integrated on 2B jets before the end of the month. All F-35 aircraft are expected to have the new software by the end of 2016.

"Concluding Block 2B and 3i development and testing now allows the F-35 program to focus on completing Block 3F -- the full warfighting capability software," the release states.

The 3i software is a key Air Force IOC requirement, and the program had been working to test and approve a fix to ongoing stability issues that required frequent re-boots -- every three to four hours -- of aircraft subsystems in flight. F-35 Program Executive Officer Lt. Gen. Christopher Bogdan told reporters last month the problem has been significantly reduced with re-boots now required approximately every 15 hours.

The JPO expects the Air Force's A-model jets will achieve IOC October, two months into the service's four-month window for meeting the operational milestone. The program has had difficulty completing the newest version of the F-35's Autonomic Logistics Information System, and the JPO currently predicts the release will be approximately 60 days late.

By Tony Bertuca
May 9, 2016 at 11:06 AM

Major defense legislation is winding it way through Congress this week, while the Defense Department's acquisition chief is scheduled to speak at a Washington think tank.

Monday

The Senate Armed Services airland subcommittee marks up its portion of the fiscal year 2017 defense authorization bill.

Tuesday

Frank Kendall, the Pentagon's acquisition chief is scheduled to speak at the Center for Strategic and International Studies.

The Senate Armed Services subcommittees on seapower, readiness and management support, emerging threats and capabilities, and strategic forces are all scheduled to mark up the FY-17 defense authorization bill.

David Thompson, chief executive of Orbital ATK, is slated to speak at the Washington Space Business Roundtable luncheon, which begins at 11:30 a.m.

DynCorp International is expected to hold a conference call on its quarterly earnings.

Wednesday

The House appropriations defense subcommittee is scheduled to mark up its version of the FY-17 defense spending bill.

The full Senate Armed Services Committee will consider the FY-17 defense authorization bill.

The House Armed Services Oversight and Investigations Subcommittee will hold a 10 a.m. hearing on U.S. industry perspectives on the Pentagon's policies, roles and responsibilities for foreign military sales. Remy Nathan of the Aerospace Industries Association and M. Thomas Davis of the National Defense Industrial Association are slated to testify.

Boeing will hold an investor conference, featuring CEO Dennis Muilenburg as well as Leanne Caret, the new head of the company's defense business.

Thursday

Defense Secretary Ash Carter will deliver the commencement ceremony speech at the U.S. Air Force Academy.

By Sebastian Sprenger
May 9, 2016 at 9:05 AM

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

1. A new rotational aviation brigade will put U.S. Army Europe "in the ballpark" of satisfying its aviation needs, but given a dynamic security situation on the continent, even more could be needed, according to a service aviation adviser.

Full story: Rotational helicopter force to boost readiness, flexibility for Army Europe

2. The Army is synthesizing insights about Russian warfighting tactics into a new study that could change how the service develops new weapon systems, a senior service official said.

Full story: Study of Russian warfare promises changes in Army acquisition

3. Future rotary platforms are essential if the joint force is to tackle potential conflicts in the "expansive maritime environment" of the Pacific theater, according to the deputy commanding general for U.S. Pacific Command.

Full story: PACOM deputy chief touts need for rotary wing upgrade

4. A recent Army war game played through a scenario of light forces breaking through enemy defenses and subsequently waging protracted major combat while continuing to move, a warfighting model envisioned by Army futurists as a likely challenge in future conflicts.

Full story: War game examines new battle model touted by Army futurists

By Lee Hudson
May 9, 2016 at 9:00 AM

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

1. Senate authorizers have expressed support for several shipbuilding initiatives similar to what was included in the House Armed Services Committee's defense policy bill, but how those plus-ups will be funded in the upper-chamber committee's version of the legislation remains a key question ahead of the panel's mark-up this week.

Full Story: Shipbuilding topline questions hang in balance ahead of Senate mark

2. The Marine Corps remains "confident" in the Joint Strike Fighter's logistics system's ability to deploy and support a full range of military operations although the Government Accountability Office in a recent report discovered that pilots, maintainers and administrators are concerned the system may not be deployable.

Full Story: Marines 'confident' F-35 logistics system is deployable despite GAO report

3. Navy Secretary Ray Mabus has tasked the service's acquisition chief with examining research and development funding mechanisms to ensure they're being used to harness innovation to the maximum extent possible.

Full Story: Mabus calls for examination of research and development funding

By John Liang
May 6, 2016 at 3:51 PM

The next administration's defense budget and pre-emptive protests of the ENCORE III program highlight this Friday INSIDER Daily Digest.

Work has begun on prepping the budget for the next administration:

OMB directs process to support next administration's FY-18 budget proposal

The Obama administration has begun the early work of readying the entire executive branch for a new president by directing all agencies -- including the Pentagon -- to prepare estimates of needed funding in fiscal year 2018 that the next administration can use to fashion a formal budget request.

Document: OMB memo on next administration's FY-18 budget

Two defense contractors aren't waiting for a DOD contract award for the ENCORE III program:

Booz Allen Hamilton, CACI file pre-emptive protests over ENCORE III

Two large services contractors have filed protests over the Defense Information Systems Agency's ENCORE III solicitation, which has generated controversy by using the lowest-price, technically acceptable contracting approach.

The No. 2 official at U.S. Strategic Command spoke this morning:

STRATCOM official: Sole-source deal speeds Huey recap by two years

A sole-source procurement of Army UH-60M-model Black Hawks could accelerate the recapitalization of the UH-1N Huey helicopter by two to three years, according to the deputy head of U.S. Strategic Command.

The front page of this week's Inside the Air Force:

Senate mark expected to impact Air Force's RD-180, B-21 plans

The Senate Armed Services Committee will mark up its version of the fiscal year 2017 defense policy bill next week, and may include language that could have a considerable impact on key Air Force plans, including its strategy to replace the Russian-made RD-180 engine and its approach to contracting for the B-21 Long-Range Strike Bomber.

House lawmaker questions DOD support for backup PNT system

An amendment included in the House Armed Services Committee's defense policy bill would push the Defense Department to move forward with an analysis of its Global Positioning System infrastructure, a step that one House lawmaker says is crucial to determining whether the department can take advantage of a potential backup positioning, navigation and timing system.

Senate lawmaker seeks clarity from Air Force on GBSD time line

Sen. Steve Daines (R-MT) has requested a meeting with Air Force Secretary Deborah Lee James to discuss the milestone A review for the Ground Based Strategic Deterrent System, congressional sources told Inside the Air Force this week.

AFRL seeks podded system for fighter jet laser demonstration

The Air Force Research Laboratory is looking for a podded system that could accommodate a laser that would have enough power to negate incoming threats to a fighter jet, AFRL officials told Inside the Air Force this week.

By Marjorie Censer
May 6, 2016 at 3:26 PM

The Pentagon is readying for as many as 10,000 participants in a program through which the defense industrial base can share cybersecurity information, according to a new Federal Register notice.

The Defense Industrial Base Cybersecurity program -- dubbed the DIB CS program -- was established to "enhance and supplement DIB participants' capabilities to safeguard DOD information that resides on or transits DIB unclassified networks or information systems," the Pentagon says on the program website.

The public-private partnership allows the Pentagon and participants to share unclassified and classified information about cyber threats.

According to an April 28 notice, the office of the DOD chief information officer is renewing proposed public information collection. The notice lists the number of respondents at 10,000 and says the responses per participant could number five each year. The average response would take seven hours, the notice says.

Alan Chvotkin, counsel at the Professional Services Council, said the document stands out both for the number of anticipated respondents as well as the frequency of those responses.

"It may signal that DOD is being more realistic or more fearful about how many pings are on networks that are likely to trigger the need for a report back to DOD," he said, though he added that "not every report is a breach and not every report is the exfiltration of data."

He said DOD appears to be "anticipating or hoping that a lot more people would participate than are now participating."

"The goal would be, over time, to expand the program and to maybe go government-wide,” Chvotkin added.

By Marjorie Censer
May 6, 2016 at 1:25 PM

Engility reported Thursday it lost $3.2 million in its most recent quarter, less than the $13.4 million loss the company recorded in the same three-month period a year earlier.

The contractor announced quarterly sales hit $523 million, up from $403 million in the same period the prior year.

Lynn Dugle, the company's new chief executive, laid out her plans, telling analysts in a late Thursday call the company will be focused on realizing sustainable organic growth, increasing and retaining its talent base and strengthening its balance sheet.

"Organic growth is our top priority and, to grow in this highly competitive industry, we must increase our win rate and total bookings," Dugle said.

In particular, she pointed to the intelligence and civil markets as "significant potential growth areas" for Engility.

Dugle also said that while Engility is seeing more best-value -- as opposed to lowest-priced, technically acceptable -- contracts, the company is watching closely to see if those competitions actually result in awards to bidders who don't offer the lowest price.

"The jury's a bit out on that, but I will say that we are not ever going to get only focused on price," she said.

By Tony Bertuca
May 6, 2016 at 12:00 PM

Pentagon acquisition chief Frank Kendall has a "pet peeve" when programs "go into the ditch."

Kendall told an audience at a Defense Acquisition University seminar April 27 that the term "'realized risk' is becoming a pet peeve of mine," according to slides he presented.

"There are a couple of formulations of this that I've seen fairly often over the last few years," the slides state. "When a program goes in the ditch, what I hear from the [program manager] or [program executive officer] is 'schedule is being adjusted to reduce risk,' or 'because risks that were accepted were realized the program is being restructured.'"

Kendall finds such characterizations demonstrate an abdication of responsibility.

"Frankly, I find this a little irritating," the slides state. "It seems like an attempt to say that we all agreed to roll the dice, and gee look what happened, guess we'll have to make some adjustments. I feel that this is basically a way to duck responsibility. The fact is that a program plan which was submitted for approval and justified as being executable wasn't executed. End of story. The reasons can be anything from poor planning to poor performance, to acts of god, but the formulation that 'risk was realized' strikes me as a way to 'spin' failure as something else."

Kendall acknowledges some aspects of program management cannot be controlled, but stressed that adjustments should be made continuously to manage risk.

"We are not, or should not be, spectators to our programs waiting to see what happens," the slides state. "Our job is to be on top of events and steer them to get where we need to go as efficiently as possible. Program management is not a spectator sport."

By John Liang
May 6, 2016 at 11:56 AM

Marine Corps Systems Command recently issued an updated acquisition guidebook.

The document is the result of an Aug. 14, 2015 MARCORSYSCOM memo, which called on all command acquisition programs to use it "in the planning and execution of all" organizational acquisition programs. Further:

The MAG provides a consolidated overview of MARCORSYSCOM acquisition processes and procedures. It is a ready reference for identifying major reviews, approval levels, documentation requirements, tailoring guidance, affordability measures, and higher-level policy and references.

View the guidebook.

By Courtney Albon
May 6, 2016 at 11:27 AM

Highlights from this week's Inside the Air Force:

1. The Air Force Research Laboratory is moving forward with an effort to demonstrate a high-energy laser and is reaching out to industry for a podded system that will allow for more cost-effective laser integration.

Full Story: AFRL seeks podded system for fighter jet laser demonstration

2. The Senate Armed Services Committee will mark up its version of the fiscal year 2017 defense policy bill next week, which may include language that could impact the shape of key Air Force plans, including the service's strategy to replace the Russian-made RD-180 engine and its approach to contracting for the B-21 Long-Range Strike Bomber.

Full Story: Senate mark expected to impact Air Force's RD-180, B-21 plans

3. The Air Force is working closely with Boeing to ramp up Joint Direct Attack Munition production in order to meet continued demand for the precision-guided weapon.

Full Story: Air Force eyes additional JDAM production

By Tony Bertuca
May 5, 2016 at 4:09 PM

The House Armed Services Committee supports the Pentagon's decision to classify the National Military Strategy, according to the panel's version of the fiscal year 2017 defense authorization bill.

"The committee believes that the NMS [National Military Strategy] should be re-focused to provide a strategic framework for the development of operational and contingency plans by the combatant commands, and to provide joint force and joint capability development guidance to guide resource investments by the military services," according to the bill. "To provide such guidance, the committee believes that the NMS should be a classified document."

Transparency advocate Steve Aftergood notes on his Secrecy News blog that the new bill demonstrates that, in some areas, "the arrow of transparency is pointed backwards and previously unclassified categories of records are becoming newly restricted or classified."

Joint Chiefs Chairman Joseph Dunford said during a May 29 appearance at the Center for Strategic and International Studies that the 2016 NMS, unlike previous years will be classified.

"The national military strategy will be a classified document," he said, noting that the NMS has "historically been written for the public."

Dunford, however, said the Pentagon "will certainly articulate to the public the guts of a national military strategy," despite plans to classify the NMS.