The Insider

By Tony Bertuca
March 24, 2016 at 12:11 PM

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

1. The head of the House Armed Services Committee is urging Pentagon leaders to submit their recommendations for how to modify the Goldwater-Nichols Act before lawmakers mark up the fiscal year 2017 defense authorization bill.

Full story: Thornberry urges DOD to send Goldwater-Nichols reform proposals ASAP

2. The State Department's top official charged with overseeing arms control and international security struck a different tone from some Pentagon officials Tuesday when she defended the U.S. foreign military sales system that has often been characterized as sluggish and inefficient.

Full story: State arms control official casts FMS criticisms as 'mythology'

3. U.S. Special Operations Command is asking Congress for additional funding in fiscal year 2017 to begin experimentation on an Airborne High Energy Laser intended for precision strikes during clandestine operations, according to an "unfunded requirements" memo obtained by Inside Defense.

Full story: SOCOM seeks additional funding for 'clandestine' airborne laser

By Marjorie Censer
March 24, 2016 at 9:00 AM

(This regular feature highlights protests decided by the Government Accountability Office.)

Agency: Army Contracting Command

Awardee: URS Federal Services

Protester: DynCorp International

What GAO found: DynCorp protested an Army award to URS for a contract to provide aviation field maintenance support services, contesting the agency's evaluation of the technical proposals as well as its best value tradeoff decision.

DynCorp and URS provided two of the six proposals the Army received, according to the GAO report.

"In comparing DynCorp’s and URS’s proposals, the [source selection authority] acknowledged that DynCorp’s proposal was more highly rated under the non-price factors," the report says. However, "the SSA concluded that "'the more favorable Technical rating does not warrant a $5.5 [million] (12.5%) price premium.'"

DynCorp had proposed a price of $49.4 million, compared to the URS price of nearly $44 million.

In its protest, DynCorp made six main arguments, including that the agency failed to give it credit for certain strengths, that the companies' technical proposals were evaluated "in an unequal manner" and that the best value tradeoff "failed to adequately compare the benefits of each proposal," according to the document.

"Although our decision does not address all of DynCorp’s arguments in detail, we have fully considered each of them and find that none provides a basis to sustain the protest," GAO wrote.

Read the decision: http://www.gao.gov/assets/680/676027.pdf

By Tony Bertuca
March 23, 2016 at 3:51 PM

Two House lawmakers have introduced a bipartisan bill aimed at enhancing U.S. electronic-warfare capabilities.

The bill, authored by Reps. Rick Larsen (D-WA) and Jackie Walorski (R-IN), seeks to give the Pentagon "more flexibility, making it easier to modernize legacy systems and develop new EW technologies," according to a statement from the lawmakers.

The bill would also provide "leaders in the Pentagon with more and better tools to more rapidly acquire advanced EW technology" and calls on the Defense Department's EW Executive Committee to report to Congress on a strategy intended to increase U.S. electronic-warfare capabilities, according to the statement.

A similar bill has been introduced in the Senate by Mark Kirk (R-IL) and Kirsten Gillibrand (D-NY).

By John Liang
March 23, 2016 at 3:22 PM

A former ULA executive's remarks about a space launch contract, the Terminal High Altitude Area Defense system, and Goldwater-Nichols news highlight this Wednesday INSIDER Daily Digest.

It's official, DOD's inspector general is looking into the Pentagon's treatment of the United Launch Alliance:

DOD inspector general launches ULA probe

The Defense Department's inspector general has officially opened an investigation into "assertions" made by a former United Launch Alliance executive about the Pentagon's treatment of the Boeing-Lockheed Martin joint venture.

Document: DOD IG memo on ULA investigation

The Army is looking at potentially deploying the THAAD system to multiple combatant commands:

Army juggling demand for upper-tier antimissile equipment

Besides a potential deployment of the Terminal High Altitude Area Defense system to South Korea, the Army also is weighing requests from U.S. European Command and U.S. Central Command for the capability, a key official said.

Rep. Thornberry wants DOD to send recommendations on reforming the Goldwater-Nichols Act soon:

Thornberry urges DOD to send Goldwater-Nichols reform proposals ASAP

The head of the House Armed Services Committee is urging Pentagon leaders to submit their recommendations for how to modify the Goldwater-Nichols Act before lawmakers mark up the fiscal year 2017 defense authorization bill.

A preview of the possible acquisitions the Army's combat support program office is looking at:

Program executive office adjusts its acquisition stance

HUNTSVILLE, AL -- The program executive office for combat support and combat service support has begun using "whiteboards" to generate a broad-based outline for new programs "before we put pen to paper" on any acquisition, according to its chief.

DOD and the Navy can't seem to agree on how many Littoral Combat Ships are needed:

Littoral Combat Ship sparring between top officials continues in Congress

The dispute between Defense Secretary Ash Carter and Navy Secretary Ray Mabus over the number of Littoral Combat Ships needed by the maritime service continued last week, with a top senator siding with Carter's decision to cut the LCS program.

At least one lawmaker wants to see WIN-T funding increased:

Lawmaker seeks to undo cuts slated for major Army network program

Rep. Joe Kennedy (D-MA) has asked the House Appropriations defense subcommittee to increase funding for the Army's Warfighter Information Network-Tactical, which is in line for cuts under service plans for fiscal year 2017.

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

By Marjorie Censer
March 23, 2016 at 1:16 PM

Facing questions about the status of a report on services contractors, Mike McCord, the Pentagon's comptroller, said this week the Pentagon is "looking hard" at that area.

At a Tuesday House Armed Services Committee hearing, Rep. Madeleine Bordallo (D), the delegate from Guam, asked about a report that would inventory all services contracts.

"In this extremely constrained fiscal environment, can we expect to see the department leverage the clear cost savings found in civilian personnel versus contractors?" she asked.

Defense Secretary Ash Carter told Bordallo DOD is "committed to reducing the strength, particularly of headquarter staffs, both civilian and contractor and, for that matter, military."

"Are we getting better at understanding how we're doing the spend for services contracting?" he added. "Yes, we are getting better at that."

McCord added that Peter Levine, deputy chief management officer at DOD, is leading the department's look at services contractors. However, he said he doesn't know the status of the report.

"You really look at whether you really need everything that you're doing," he said. "And that is an important part of our efficiencies effort for this budget."

As Inside Defense reported at the time, McCord first mentioned the DCMO-led review in February.

By Justin Doubleday
March 23, 2016 at 11:38 AM

A new Congressional Research Service report suggests the Navy could be poised to make a revolutionary leap in the way it approaches missile defense thanks to three game-changing technologies under development.

The March 18 report, "Navy Lasers, Railgun, and Hypervelocity Projectile: Background and Issues for Congress," first obtained by Secrecy News, states:

Any one of these new weapon technologies, if successfully developed and deployed, might be regarded as a "game changer" for defending Navy surface ships against enemy missiles. If two or three of them are successfully developed and deployed, the result might be considered not just a game changer, but a revolution. Rarely has the Navy had so many potential new types of surface ship missile-defense weapons simultaneously available for development and potential deployment.

Although the Navy in recent years has made considerable progress in developing [Solid-State Lasers], [Electromagnetic Railgun], and [Hyper-Velocity Projectile], a number of significant development challenges remain. Overcoming these challenges will likely require years of additional development work, and ultimate success in overcoming them is not guaranteed.

Rear Adm. Pete Fanta, the director of surface warfare in the office of the chief of naval operations (N96), says lasers and railguns have to prove they can compete with the weapon systems currently installed on surface combatants, Inside the Navy reported earlier this month.

"Right now, the technological development of those two systems … are still probably a few years out before they're seriously able to compete with the current systems I have onboard," Fanta said March 2 at a naval engineering conference in Arlington, VA. "I will continue their development. I will continue their testing. In fact, we have demos scheduled from now until the next two or three years to demonstrate the utility of those and we are all in, but before you actually land on one of my ships, you have to replace the system that you're touting you can."

By Courtney McBride
March 23, 2016 at 11:17 AM

Joint Light Tactical Vehicles are set to begin rolling off the production line after the Army on March 22 issued a $243 million contract modification for low-rate initial production.

Oshkosh Defense, which in August won the competition to build the humvee successor for the Army and the Marine Corps and later survived a Government Accountability Office protest and legal challenge from Lockheed Martin, will manufacture the vehicles in Oshkosh, WI.

The cost will be met using fiscal year 2016 “research, development, testing, and evaluation; other procurement (Army); and other procurement funds” obligated at the time of the award, according to the contract announcement.

The order includes “657 Joint Light Tactical Vehicles; 25 trailers; 2,977 kits; 12 months of system engineering and program management; test support; 175-test hardware; and one technical data package,” the announcement states.

Program executive officer for combat support and combat service support Scott Davis told reporters March 15 that the program is “fully operational and running.” During a roundtable discussion at the Association of the United States Army's Global Force Symposium in Huntsville, AL, Davis said the Army expects the first JLTV deliveries to begin by October 2016.

By John Liang
March 22, 2016 at 4:52 PM

The Government Accountability Office today released a redacted version of the comptroller general's decision to deny a bid protest filed by General Dynamics Land Systems that challenged the award of the next-generation amphibious vehicle contract by the Marine Corps to Science Applications International.

As Inside the Navy reported last week:

On Dec. 7, 2016, GDLS filed a protest with the GAO for the first phase of a two-step procurement for the development of the Amphibious Combat Vehicle Increment 1.1. The total value of the contract awarded to SAIC if all options are exercised is $1.2 billion.

"As explained in our decision, General Dynamics challenged, among other things, the Marine Corps' evaluation of the company's proposal and the agency's decision in this best value procurement to select SAIC's higher-rated, higher-priced proposal over the lower-rated, lower-priced proposal submitted by General Dynamics," according to a GAO statement sent to Inside Defense. "GAO concluded that the Marine Corps' evaluation of the General Dynamics proposal was reasonable and consistent with the evaluation scheme identified in the solicitation."

GAO also concluded the decision to select SAIC's higher-rated, but higher-priced proposal was within the Marine Corps' discretion when conducting a best value procurement, the statement reads.

"Because this protest decision contains proprietary and source selection sensitive information, release of the decision, at this point is limited to Marine Corps personnel and to outside counsel who have been admitted under the GAO protective order issued for these protests," according to the statement.

GAO's redacted decision document issued this week reveals that GDLS had offered an $869 million bid, while SAIC offered a $1.2 billion bid.

By John Liang
March 22, 2016 at 2:53 PM

Foreign military sales and the Air Force's anti-air network top off this Tuesday INSIDER Daily Digest.

The State Department's top arms control official talked about foreign military sales this morning:

State arms control official casts FMS criticisms as 'mythology'

The State Department's top official charged with overseeing arms control and international security struck a different tone from some Pentagon officials Tuesday when she defended the U.S. foreign military sales system that has often been characterized as sluggish and inefficient.

Keep an eye out for a Navy study on integrating Air Force aircraft into the maritime service's integrated anti-air network:

Navy wants to loop Air Force planes into new anti-air network

The Navy has begun studying how Air Force aircraft could be used as part of the maritime service's integrated anti-air network, according to an official.

Inside Defense had a chat recently with the head of Drone Aviation:

Drone Aviation seeks foothold in military market

With a new Defense Department contract in hand, Drone Aviation executives say they see their tactical aerostat increasingly gaining traction.

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

The Army is still trying to figure out whether to go with a major advisory panel's recommendation to keep a number of Apache helicopters:

Aviation chief: Apache compromise could put Army 'back at square one'

A proposal by the National Commission on the Future of the Army to retain 72 Apache attack helicopters in the National Guard is estimated to cost $2.4 billion and threatens to throw the service back to the very same budget problems it was trying to fix with its Aviation Restructure Initiative, a key service official said.

A look at the future of Marine Corps wargaming:

Marine Corps war games focus on future force design, capabilities

The Marine Corps Warfighting Laboratory's wargaming division is focusing on future force design and capability development, according to a service official.

The Army's acquisition chief isn't a fan of the Goldwater-Nichols Act:

Army acquisition chief laments 'burden' of Goldwater-Nichols

HUNTSVILLE, AL -- The Goldwater-Nichols Act, a package of acquisition reforms passed three decades ago and currently under review by the Office of the Secretary of Defense and the leaders of the House and Senate Armed Services committees, has made the Army "a very burdened organization," according to the service's acting acquisition executive.

Keep an eye out for a possible congressional review of the Army's end strength:

Army vice chief questions drawdown plan, calls for 'strategic review'

Army Vice Chief of Staff Gen. Daniel Allyn told senators last week he would support a review of Obama administration plans to reduce his service's end strength to 450,000 active-duty soldiers.

By Tony Bertuca
March 22, 2016 at 1:03 PM

The Special Inspector General for Afghanistan Reconstruction has notified Congress that a formal audit of the Defense Department's disbanded Task Force for Business and Stability Operations is officially underway.

Senate Judiciary Committee Chairman Chuck Grassley (R-IA) was notified of the audit by SIGAR in a March 21 letter, according to statement from Grassley's office.

"Grassley requested a formal, comprehensive audit after the watchdog, the Special Inspector General for Afghanistan Reconstruction (SIGAR), documented numerous instances of excessive spending by the now-defunct task force and a shoddy record of projects," according to the statement.

The TFBSO made headlines last year when SIGAR alleged that it oversaw spending on a $43 million gas station and luxury villas.

Meanwhile, SIGAR is conducting one TFBSO audit to assess "internal controls, compliance, corrective actions taken on prior findings and recommendations, and outstanding liabilities," and one that "will assess the strategy, planning, interagency coordination, oversight, and outcomes" of the task force's activities in Afghanistan.

"These audits are necessary," Grassley said in the statement. "Someone needs to document whether the task force has the receipts and records to support its spending. Otherwise, the American taxpayers have no way of knowing whether they got what they paid for or whether there was outright fraud or theft."

A final report is expected from SIGAR early next year.

By Marjorie Censer
March 22, 2016 at 11:40 AM

(This regular feature highlights protests decided by the Government Accountability Office.)

Agency: U.S. Transportation Command

Awardee: United Airlines

Protester: National Air Cargo Group

What GAO found: National Air Cargo Group protested the award of a TRANSCOM contact for international commercial transportation services to United, arguing the deal violated the terms of the solicitation, according to GAO.

In June of last year, TRANSCOM awarded five companies, including National Air Cargo Group, the indefinite-delivery, indefinite-quantity contracts. In July, it added a sixth awardee in United, the report says.

GAO dismissed the protest, and National Air Cargo Group went to the U.S. Court of Federal Claims. That protest was dismissed by the court after TRANSCOM said it would reevaluate the past performance of all offerors and make a new award decision. In January, the agency affirmed all of the contract awards, according to the latest GAO report.

National Air Cargo Group protested again, arguing the award was improper and TRANSCOM's evaluation of United's past performance was unreasonable.

The agency contended the protest should be dismissed because National Air Cargo Group "is not an interested party to pursue the protest." National Air Cargo Group disagreed, contending its direct economic interest would be hurt by United's award because it would reduce the amount of work available to it, the GAO report says.

GAO agreed with the agency and dismissed the protest.

Read the decision: http://www.gao.gov/assets/680/675863.pdf

By John Liang
March 22, 2016 at 10:57 AM

The Army announced today the implementation of a new "Associated Units" pilot program that establishes formal relationships between identified units across the active-duty Army, Reserve and National Guard that would allow those units to train together before deployment.

"Much of America's Army's capacity is resident in the Reserve Components and we must rely more heavily on them to meet the demands of a complex global environment," Army Chief of Staff Gen. Mark Milley said in a statement, adding: "The Associated Units pilot allows us to leverage the capabilities and capacities of the Active Component, Army Reserve and the Army National Guard as One Army."

Army Reserve chief Lt. Gen. Jeffrey Talley said in the same statement that the new pilot program "facilitates readiness and strategic depth across components. These units will train, build readiness, and ultimately fight as One Army."

Georgia-based units will be the first ones to set up the pilot effort, beginning this summer, according to the statement.

Task Force 1-28 Infantry, an active-duty Army infantry battalion stationed at Ft. Benning, GA, will be associated with the 48th Infantry Brigade Combat Team, a Georgia Army National Guard unit. Additionally, the 48th Infantry Brigade will be associated with the active-duty 3rd Infantry Division, stationed at Ft. Stewart.

Army National Guard Director Lt. Gen. Timothy Kadavy said the soldiers of Task Force 1-28 and the soldiers of the Georgia Army National Guard's 48th Infantry Brigade would wear the 3rd Infantry Division's patch.

"This brigade will train and, if called to do so, deploy and fight with the 3rd Infantry Division as an Associated Unit," Kadavy said. "These units will develop relationships and standards in home station so they may fight together in combat without having to meet on the battlefield and figure these things out."

In addition to the Georgia-based units, the following additional units will be associated under the Associated Units pilot this summer, according to the statement:

*  The 1st Battalion, 143 Infantry Regiment from the Texas Army National Guard will be associated to the 173rd Airborne Brigade Combat Team stationed in Vicenza, Italy;

*  The 1st Battalion, 151 Infantry Regiment from the Indiana Army National Guard will be associated to the 2nd Brigade Combat Team, 25th Infantry Division stationed in Schofield Barracks, Hawaii;

*  The Hawaii-based 100th Battalion, 442 Infantry Regiment, U.S. Army Reserve, will be associated with the 3rd Brigade Combat Team, 25th Infantry Division stationed in Schofield Barracks, Hawaii;

*  The 81st Armored Brigade Combat Team, Washington Army National Guard, will be associated with the 7th Infantry Division stationed in Joint Base Lewis-McChord, Washington;

*  The 3rd Brigade Combat Team, 10th Mountain Division, stationed in Fort Polk, Louisiana, will be associated with the Texas Army National Guard's 36th Infantry Division;

*  The 86th Infantry Brigade Combat Team from the Vermont Army National Guard will be associated with the 10th Mountain Division, stationed in Fort Drum, New York;

*  The North Carolina-based 824th Quartermaster Company, U.S. Army Reserve, will be associated with the 82nd Sustainment Brigade, stationed in Fort Bragg, North Carolina;

*  The 249th Transportation Company, Texas Army National Guard, and the 1245th Transportation Company, Oklahoma Army National Guard, will be associated with the 1st Cavalry Division Sustainment Brigade, stationed in Fort Hood, Texas;

*  The 840th Engineer Company, Texas Army National Guard, will be associated with the 36th Engineer Brigade, stationed in Fort Hood, Texas;

*  The 1176th Transportation Company, Tennessee Army National Guard and the 2123rd Transportation Company, Kentucky Army National Guard, will be associated with the 101st Sustainment Brigade, stationed in Fort Campbell, Kentucky; and

*  The 5th Engineer Battalion, stationed in Fort Leonard Wood, Missouri, will be associated with the 35th Engineer Brigade from the Missouri Army National Guard.

By John Liang
March 21, 2016 at 1:01 PM

Unfunded priorities, a space launch controversy and more highlight this Monday INSIDER Daily Digest.

Don't expect Defense Secretary Ash Carter to endorse the services' unfunded prioities lists anytime soon:

Carter warns Congress of 'ripple effects' from unfunded priorities lists

Defense Secretary Ash Carter is warning Congress against "ripple effects" that would be caused by inserting additional acquisition programs into the Pentagon's fiscal year 2017 budget, despite the fact the military services recently identified $22.6 billion in "unfunded priorities," according to a memo obtained by Inside Defense.

Document: Carter memo to Congress on unfunded priorities

Comments made by a since-resigned ULA executive regarding the EELV competition have spawned a DOD IG review:

Pentagon inspector general 'reviewing the matter' after ex-ULA exec's statements

The Defense Department's inspector general is "reviewing" a request from Defense Secretary Ash Carter to determine "appropriate action" in light of comments made by a former United Launch Alliance executive implying DOD had somehow shown favoritism to ULA over its competitor SpaceX.

ICYMI: McCain wants Carter to investigate 'disturbing comments' from ULA exec

The Navy will need to buy more munitions soon:

Official: Navy weapons inventory needs to be examined by 2018

The Navy is facing a weapons shortfall, initially sparked by a decision to maintain high-end capability project funding levels in the face of a declining defense budget and further exacerbated by the campaign against the Islamic State of Iraq and the Levant, according to a service official and budget documents.

Keep an eye out for a new Army strategy aimed at making the service's helos more lethal:

New lethality strategy approved for Army helicopter weaponry

Senior Army leaders have approved a new strategy for making helicopter-fired weapons more accurate and deadly, according to the head of the service's aviation branch.

Don't expect everyone to agree with the Air Force's efforts to limit the amount of information it releases about the Long-Range Strike Bomber:

Lawmakers, analysts skeptical of Air Force's lack of B-21 cost disclosure

As the Air Force continues to develop a security plan for information related to the B-21 Long-Range Strike Bomber, some lawmakers and defense analysts are skeptical of the service's claims that releasing the B-21 contract value could cause potential adversaries to learn key information about the highly veiled system's capabilities.

Lockheed Martin wants the Air Force to tell the company about the service's plans for its next-generation aircraft:

Lockheed Martin seeking more insight into fifth-generation upgrade plans

As Lockheed Martin's advanced research and technology arm works with the Air Force to help identify sixth-generation capabilities, the company is also seeking direction on the service's plans for long-term modernization of its fifth-generation fleets.

By Tony Bertuca
March 21, 2016 at 10:59 AM

Defense Secretary Ash Carter heads to Capitol Hill this week to justify the Pentagon's fiscal year 2017 budget request, while members of Congress are scheduled to receive an update on the most expensive program in Defense Department history -- the F-35 Joint Strike Fighter.

Tuesday

The House Armed Services Committee will hear from Carter, Chairman of the Joint Chiefs of Staff Gen. Joseph Dunford and Pentagon Comptroller Mike McCord on the FY-17 budget. Link: http://1.usa.gov/21Dh7Vr

The House Appropriations defense subcommittee will hear from guard and reserve officials on the FY-17 budget. Link: http://1.usa.gov/1Rw5Mk4

The House Armed Services seapower and projections subcommittee will hear from U.S. Transportation Command officials on logistics and sealift force requirements. Link: http://1.usa.gov/21Dh7Vr

The House Armed Services emerging threats and capabilities subcommittee will hear from the Defense Department's chief information officer and deputy chief management officer on information technology and cyber programs. Link: http://1.usa.gov/21Dh7Vr

Wednesday

The House Armed Service tactical air and land forces subcommittee will receive an update on the F-35 Joint Strike Fighter program. Link: http://1.usa.gov/21Dh7Vr

By Marjorie Censer
March 21, 2016 at 10:24 AM

After reorganizing as part of the divestiture of its IT services business, Lockheed Martin has integrated its remaining cybersecurity work into its mission systems and training business, according to a company executive.

Deon Viergutz, Lockheed's vice president of cyber solutions, told Inside Defense during an interview last week that the contractor completed the reorganization last year. Lockheed's commercial cyber work is part of the business being merged with Leidos, but Lockheed retained all of its government-focused cybersecurity business.

Now, that work is part of MST and, as a result, is more closely linked with the products Lockheed builds, he said.

“We're much closer to our platforms and our systems,” Viergutz said.

Viergutz added that the new home is helping ensure cybersecurity is baked into the company's programs. Those conversations, he said, are happening earlier than before.