The Insider

By Tony Bertuca
April 22, 2016 at 2:00 PM

A full house is expected Monday when Inside Defense and the Professional Services Council will jointly host a discussion on DOD's landmark services acquisition policy -- the directive from earlier this year that promises to reshape the way the Pentagon buys services.

Ken Brennan, the Pentagon's deputy director for services acquisition, will talk about “DOD's governance, management and oversight of services, including the new 5000.74 directive." Following Brennan's remarks, a panel will take a deeper look at the Pentagon's plans as well as their potential effect on contractors.

The lineup:

Ken Brennan, deputy director, services acquisition, Department of Defense

Alan Chvotkin, executive vice president and counsel, Professional Services Council

Marjorie Censer, defense business editor, Inside Defense

The details:

When: Monday, April 25, 2016 from 8:30 AM to 11:00 AM (EDT)
Where: CACI Conference Center 4300 Wilson Blvd, Ste 750, Arlington, VA 22203

Sign up here today (only a few seats remain).

By Jason Sherman
April 22, 2016 at 1:18 PM

Leading the Friday update are a few items from the front page of today's Inside the Air Force.

USAF expects enterprise ground migration in next five years

The Air Force is moving forward with its implementation plan for a new space Enterprise Ground Services concept, and expects to release a request for information later this month that will allow industry to help set standards and shape future ground system architecture.

USAF Scientific Advisory Board completes directed energy maturity study

The Air Force Scientific Advisory Board completed its fast-track study on directed energy April 19 and will brief the service's top leadership May 2, according to the board's chair.


Nellis AFB testers to complete F-35A IOC readiness tests by end of month

The test units tasked with conducting a key F-35 initial operational capability assessment are poised to complete test exercises by May after wrapping up a series of tests meant to demonstrate the Joint Strike Fighter's operational performance.

And before we punch out, two more:


Army is tasked to weigh new missiles forbidden under U.S.-Russia treaty

Lawmakers have adopted legislation tasking the Army to envision fielding new missile types currently banned under a landmark disarmament treaty with Russia.

DBB: Law creating new business management secretary should be changed

Legislation that requires the Pentagon's deputy chief management officer and chief information officer to be consolidated and elevated into a new position starting next February will not achieve its desired results and should be changed, an influential advisory panel concluded.

By Marjorie Censer
April 22, 2016 at 1:04 PM

Under Secretary of Defense for Policy Christine Wormuth will step down in June, according to a statement issued today by Defense Secretary Ash Carter.

Wormuth will leave "to spend more time with her family," Carter said in the statement.

He said Brian McKeon, Wormuth's principal deputy, will serve as acting under secretary of defense for policy, and David Shear, assistant secretary of defense for Asian and Pacific security affairs, will assume McKeon's responsibilities.

By Marjorie Censer
April 22, 2016 at 12:15 PM

Nonprofit research and development organization SRI International said this week it has spun off a venture dubbed Superflex to develop cutting-edge wearable robotics.

Superflex technology was originally developed for the DARPA-funded "Warrior Web" program, the corporation said.

The new venture will be led by Rich Mahoney, who has spent more than seven years as the director of SRI Robotics. SRI said Superflex plans to announce its product focus by the end of the year.

By Leigh Giangreco
April 22, 2016 at 12:14 PM

Highlights from this week's Inside the Air Force:

1. Contrary to its published budget, the Air Force will not buy 28 of the Long-Range Anti-Ship Missile Increment 1 missiles in FY-20 and FY-21.

Full story: Air Force to update budget with lower LRASM procurement

2. The Space and Missile Systems Center is preparing to release a Space-Based Infrared System follow-on request for information this spring, which will be followed soon after by an industry day.

Full story: Air Force to present SBIRS acquisition strategy this fall

3. The IOC Readiness Assessment will produce a report that Air Combat Command's chief will use to determine whether the F-35A variant is ready for operational use within the Air Force.

Full story: Nellis AFB testers to complete F-35A IOC readiness tests by end of month

By Tony Bertuca
April 22, 2016 at 11:14 AM

The Pentagon has released a directive aimed at ensuring the declassification of national security information receives “equal attention” as the classification of information.

"Declassification of information will receive equal attention as the classification of information so that information remains classified only as long as required by national security considerations," according to the April 21 directive signed by Marcel Lettre, the under secretary of defense for intelligence.

The provision, first reported by Secrecy News, also mandates that "the volume of classified national security information and [controlled unclassified information], in whatever format or media, will be reduced to the minimum necessary to meet operational requirements."

The new directive, however, stresses the need for DOD leadership to address unauthorized disclosure of classified information.

“Commanders and supervisors at all levels must consider and, at their discretion, take appropriate administrative, judicial, contractual, or other corrective/disciplinary action to address negligent discharges of classified information commensurate with the seriousness of the security violation,” the provision states.

By John Liang
April 21, 2016 at 3:09 PM

Plenty of FY-17 defense authorization bill coverage, along with shifting billions from the OCO account as well as a big Navy report on the Ohio-class submarine replacement highlight this Thursday INSIDER Daily Digest.

Some big budget news from this morning:

Thornberry outlines maneuver to shift $18B in war funding to DOD base budget

House Armed Services Committee Chairman Mac Thornberry (R-TX) confirmed Thursday that his committee seeks to shift $18 billion from the Pentagon's warfighting account and use it to pay for increases in weapons procurement, an additional 20,000 Army soldiers, and a variety of training and maintenance.

The related scoop from yesterday afternoon:

Sources: House Armed Services Committee 'carved out' $18B from OCO to increase weapon buys

The House Armed Services Committee is pursuing a fiscal year 2017 defense authorization bill that would transfer $18 billion of planned overseas contingency operations spending into the Defense Department's base budget to pay for increased procurements of weapon systems, according to multiple sources.

We got our hands on a big Navy report that outlines the service's Ohio-class submarine replacement acquisition plan:

Navy details envisioned use of strategic deterrent fund

The Navy for the first time has detailed how it would use a congressionally created fund and its special acquisition authorities to pay the tab for the Ohio-class submarine replacement program, which officials now say carries an estimated $122 billion in procurement costs. 

Document: Navy report to Congress on the Ohio replacement sub acquisition strategy

Continuing our coverage of DOD's FY-17 legislative proposals:

Navy estimates nearly $1B cost avoidance by reducing one carrier air wing in FY-17

The Navy's proposal to disestablish one carrier air wing and realign the orphaned aircraft across the nine remaining active-duty air wings would allow the service to harvest nearly $1 billion in avoided costs between fiscal years 2017 and 2021, the service has explained to lawmakers in a bid to win support for the move.

The Senate Armed Services Committee held a nomination hearing this morning:

NORTHCOM nominee: Pentagon reconsidering antimissile-blimp plans

The Defense Department is reevaluating plans to restart a demonstration in October of a large blimp designed to watch for incoming cruise missiles, according to the Obama administration's nominee to lead U.S. Northern Command.

Document: Senate hearing on EUCOM, NORTHCOM nominations

Our latest House FY-17 defense authorization bill coverage:

Lawmakers seek details on Army unmanned aircraft plans

A key House panel is seeking information from the Army on its plans to boost capacity in unmanned aircraft systems.

Lawmakers seek review, new strategy on DOD's missile defeat policy

Lawmakers are calling on senior defense leaders to examine the Pentagon's missile defeat policy and create a new strategy for it.

Lawmakers want DOD IG to examine if agencies verify critical supply chain

Expressing concern that the Pentagon does not have enough information about its supply chain for certain critical systems, House authorizers are calling for the Defense Department inspector general's office to examine whether the services or agencies have independently verified the sources of their parts.

Lawmakers intend to withhold CPGS funds until DOD provides details

House authorizers want to fence off 25 percent of the money for a system designed to strike worldwide targets in under an hour using non-nuclear weapons until senior defense leaders can provide details on whether such a program is a priority and if the proposed time table works.

House panel pushing Army toward larger missiles

A panel of House lawmakers is urging the Army to examine the utility of employing more powerful missiles for both air defense and strike missions.

Keep an eye out next year for the Navy's release of the number of Growlers it will need:

Navy will reveal number of Growlers required in its inventory next year

Next year the Navy will finally reveal the number of E/A-18G Growlers needed in its inventory to conduct the Pentagon's airborne electronic attack mission, according to a service official.

Document: Senate hearing on naval aviation

Pentagon acquisition chief Frank Kendall was on Capitol Hill this week:

Kendall supported by key Senate appropriators in defense of RD-180 buy

Defense Department acquisition chief Frank Kendall received support from two key Senate appropriators Wednesday as he defended the controversial strategy to wean the Pentagon off Russian-made rocket engines, setting the stage for another possible showdown with Senate authorizers over the issue.

Document: Senate hearing on defense research and innovation

By Marjorie Censer
April 21, 2016 at 2:38 PM

Rockwell Collins said today that sales in its government systems business dropped during the company's most recent quarter.

The company said quarterly sales hit $538 million, down about 5 percent from the same period the prior year. The unit's communication and navigation sales dropped more steeply than its avionics sales.

Rockwell Collins attributed the decline in communication and navigation sales to "the wind-down of an international electronic warfare program and lower international deliveries of targeting systems." The company's avionics sales reduction was a result of "lower deliveries on various rotary wing platforms [and] lower simulation and training sales." However, that unit did see higher fixed-wing platform revenues, Rockwell Collins said.

The company said the unit's profit also fell because of lower sales volume and higher costs related to expanding in international emerging markets. However, Rockwell's profit was helped by lower company-funded research and development as well as cost savings related to previously announced restructuring plans, according to a company statement.

By John Liang
April 21, 2016 at 12:18 PM

With the growth of Russia's military presence in the Black Sea and Eastern Mediterranean, having a U.S. aircraft carrier in the region wouldn't be such a bad idea, according to the nominee to become the next head of U.S. European Command.

"In my opinion, positioning an aircraft carrier in the Mediterranean would send a strategic message not only to the Russians but also to [the Islamic State of Iraq and the Levant], and Iran and its proxies," Army Gen. Curtis Scaparrotti said in answers to policy questions submitted in advance of his nomination hearing this morning, adding: "An aircraft carrier in the Mediterranean could support [U.S. Central Command] and [U.S. Africa Command] as well as EUCOM. I understand that there are competing global requirements for aircraft carriers, and if confirmed, I will work with the Joint Staff for the appropriate sourcing solutions."

If an increased presence does not occur, Scaparrotti said the alternatives would be:

"With respect to alternatives, it is important to note that America has very strong Allies in the Black Sea Region. Our NATO Allies including Turkey, Romania, and Bulgaria play a significant role to demonstrate our presence and commitment to the region.  Romania's Mikhail Kogalniceanu Air Base serves as a logistical hub and hosts U.S. military personnel. Also, we have rotational forces training at the Novo Selo Training complex in Bulgaria on a regular basis, and Turkey remains a stalwart regional ally in the fight against ISIS."

In addition to Scaparrotti, Air Force Gen. Lori Robinson also testified at the hearing regarding her nomination to become the next head of U.S. Northern Command.

By John Liang
April 21, 2016 at 9:00 AM

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

1. House authorizers want to fence off 25 percent of the money for a system designed to strike worldwide targets in under an hour using non-nuclear weapons until senior defense leaders can provide details on whether such a program is a priority and if the proposed time table works.

Full Story: Lawmakers intend to withhold CPGS funds until DOD provides details

2. Expressing concern that the Pentagon does not have enough information about its supply chain for certain critical systems, House authorizers are calling for the Defense Department inspector general's office to examine whether the services or agencies have independently verified the sources of their parts.

Full story: Lawmakers want DOD IG to examine if agencies verify critical supply chain

3. Lawmakers are calling on senior defense leaders to examine the Pentagon's missile defeat policy and create a new strategy for it.

Full story: Lawmakers seek review, new strategy on DOD's missile defeat policy

By John Liang
April 20, 2016 at 3:23 PM

Senior Navy and Marine Corps aviation officials testified before the Senate Armed Services seapower subcommittee this afternoon.

One of their concerns is readiness recovery, according to the joint prepared testimony of Naval Air Systems Command chief Vice Adm. Paul Grosklags, Marine Corps Deputy Commandant for Aviation Lt. Gen. Jon Davis, and Navy Air Warfare (N98) Director Rear Adm. Michael Manazir:

"Readiness recovery remains one of the key areas of concern in the Department. We continue to have lower than acceptable numbers of aircraft available to train and fight; our Sailors and Marines are getting less time flying the aircraft we do have, to be as proficient as we expect them to be. This is a major concern as we are in a fiscally challenged environment and the department is in the midst of transitioning a significant portion of its aircraft to more modern and lethal varieties. The Marine Corps alone is currently transitioning every single one of its Type/Model/Series aircraft. Increasing funding of the readiness accounts, to include spares, air systems support, repair parts, and support equipment, will be critical to ensure we can recover to an acceptable level of readiness.  Given fiscal realities, our PB-17 submission represents an optimal balance of regaining an adequate level of current readiness while maintaining investment in new aircraft and capabilities -- both of which are required to support current and enduring Naval Aviation requirements."

In related news, the Senate subcommittee's House counterparts this week marked up their draft version of the fiscal year 2017 defense authorization bill, which purportedly includes additional funding for F-35 Joint Strike Fighters and Super Hornets.

By John Liang
April 20, 2016 at 2:00 PM

Silicon Valley CEOs discussing Pentagon contracting along with continued coverage of the FY-17 defense policy bill highlight this Wednesday INSIDER Daily Digest.

Don't expect Silicon Valley companies to jump into defense contracting anytime soon without some major changes to DOD acquisition policy:

Silicon Valley CEOs say Pentagon must revamp acquisition process

Three Silicon Valley chief executives said Tuesday they want to continue working with the Pentagon, but need a speedier path to sales.

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

House authorizers would prefer the National Reconnaissance Office to take over some space-based weather monitoring functions:

Lawmakers want Air Force to transfer some space weather authority to NRO

House lawmakers want to shift some space-based weather monitoring responsibilities from the Defense Department to the National Reconnaissance Office, due largely to the department's apparent inaction in addressing near-term gaps in critical weather capabilities.

The Air Force's ICBM replacement plans aren't quite clear enough for lawmakers:

House committee looking for answers on Air Force GBSD program

The House Armed Services Committee is asking the Air Force to shed more light on its now opaque strategy to recapitalize its fleet of intercontinental ballistic missiles.

House lawmakers are generally OK with the Air Force's JSTARS recapitalization plan:

House authorizers support JSTARS, but with a caveat

The House Armed Services Committee is supporting the Air Force's plan for the Joint Surveillance Target Attack Radar System recapitalization, with the caveat that the service should not pursue additional radar research in the follow-on development phase of the program.

Lawmakers want more info on the Air Force's Long-Range Strike Bomber program:

House lawmakers look to improve B-21 oversight

Concerned about the B-21's lengthy engineering and manufacturing development phase, House authorizers want the Air Force to submit a detailed progress report on the new bomber with the service's fiscal year 2018 budget request.

News on House authorizers' views on a couple of Navy shipbuilding programs:

House authorization bill will oppose LCS program cut

House authorizers oppose Defense Secretary Ash Carter’s decision to cut the Littoral Combat Ship program and will include language to that effect in the report on the House Armed Services Committee's mark of the fiscal year 2017 defense policy bill, according to congressional aides.

House authorizers provide incremental funding for LX(R) or LPD-29 in FY-17 mark

The House Armed Services Committee in its mark of the fiscal year 2017 defense authorization bill is providing incremental funding authority for the dock landing ship replacement or the LPD-29.

House authorizers love Navy fighter aircraft:

House lawmakers support additional F-35s in FY-17

The House Armed Services Committee fiscal year 2017 mark will likely fund additional F-35 Joint Strike Fighter aircraft for the Air Force, Navy and Marine Corps, according to a minority staff member.

House authorizers will support Navy purchasing additional Super Hornets

The House Armed Services Committee mark of the fiscal year 2017 defense policy bill will support the service's unfunded priorities list -- especially items regarding the tactical fighter aircraft shortfall.

By John Liang
April 20, 2016 at 1:04 PM

Pentagon acquisition chief Frank Kendall was on Capitol Hill this morning testifying on defense research and innovation.

Kendall, in his prepared testimony submitted to the Senate Appropriations defense subcommittee, said:

"All of our efforts to increase innovation and improve acquisition outcomes are efforts to swim against the current of inefficiencies exacerbated by constant sequestration induced budget uncertainty and the consequential turmoil it creates. We must restore balance to the Department, but we cannot do so until our plans and future budgets are better aligned. Until that occurs, modernization investments, particularly research and development, will suffer. This means that development programs will be stretched out inefficiently and that production rates will be well below optimal for many programs. Uncertainty about future budget levels makes it impossible to determine where the optimal balance between force structure, readiness and modernization lies. In this environment the tendency is to hang on to assets that the Department may not ultimately be able to afford, and where the assets may also be technologically ineffective against our adversaries."

Assistant Secretary of Defense for Research and Engineering Stephen Welby and Defense Advanced Research Projects Agency Director Arati Prabhakar were also on hand at the hearing.

By Courtney McBride
April 20, 2016 at 11:31 AM

The Army's Training and Doctrine Command and Arizona State University are partnering to examine the impact of increased global urbanization on future conflicts.

The service's latest "Mad Scientist" conference, taking place April 21 and 22 in Tempe, AZ, will focus on the ways the Army can use current and developmental technologies to address possible challenges to come.

The event, which will feature Army and interagency officials, ASU personnel, scientists and futurists, will be livestreamed for the public.

According to a release, the Mad Scientist initiative benefits the Army by providing "a continuous dialogue with academia, industry and government," as well as enabling the service to share research and development costs with academia.

Featured speakers at this week's event include Lt. Gen. Kevin Mangum, TRADOC deputy commanding general; Thomas Greco, TRADOC deputy chief of staff for intelligence; Brig. Gen. John Kem, provost of Army University and deputy commandant of Army Command and General Staff College; and Dr. Brett Piekarski of the Army Research Laboratory.

"Rapid urbanization over the next 20-30 years will pose serious security challenges for the Army to conduct military operations," Greco said in a statement. "This forum will expand our knowledge base and identify new, innovative ways to deal with megacity environments."

The Tempe event is the third such conference in the past two years, and TRADOC will hold additional Mad Scientist events in July and October.

By Tony Bertuca
April 19, 2016 at 3:33 PM

The House Armed Services Committee has again declined to authorize a new round of politically radioactive base realignments and closures, though the Defense Department, which believes it is operating at 22 percent excess capacity, has explicitly requested BRAC.

“Nothing in this Act shall be construed to authorize an additional Base Realignment and Closure (BRAC) round, affirming congressional intent to reject the budget request to authorize another BRAC round in 2019,” states fiscal year 2017 defense authorization bill legislation proposed by the House Armed Services readiness subcommittee.

However, nothing in the bill would prohibit DOD from conducting an analysis or study to report to Congress on its infrastructure needs.

The Pentagon recently sent Congress the results of an internal study stating that expected force structure levels for FY-19 will leave the department with 22 percent total excess capacity of which the Army will account for 33 percent, the Air Force 32 percent, the Defense Logistics Agency 12 percent, and the Navy 12 percent.

Rep. Adam Smith (D-WA), the ranking member on the committee, is a strong supporter of DOD's efforts to trim excess infrastructure and plans to introduce legislation supporting a BRAC, according to committee staffers.

“In the current budget environment, rather than waste money on excess infrastructure, we need to locate potential efficiencies and ensure taxpayer dollars are spent wisely,” he said in an April 14 statement. “This report makes clear that DOD maintains a large amount of infrastructure that it does not need. I will continue to work toward legislation that authorizes an additional BRAC round.”

House Armed Services Committee Chairman Mac Thornberry (R-TX) released a statement the same day saying DOD's report was insufficient, in part, because it relied on force structure estimates planned for 2019, not those in place during 2012 as directed by Congress in last year's authorization bill.

“The capacity report the Pentagon belatedly delivered to Congress simply doesn’t tell us what we need to know,” he said. “In envisioning a military far smaller than anyone thinks is wise, it fails to comply with the law as badly as it fails to justify a BRAC round. No one believes that the current military force structure is adequate to meet the threats we face. That’s why Congress directed the study to use military we had in 2012 as a baseline, to reflect the needs of a more capable force. The legal requirement to submit a capacity report based on 2012 force levels remains unfulfilled.”