The Insider

A look at the Air Force's F117 engine sustainment starts off today's INSIDER.

DOD IG: Air Force does not have adequate F117 sustainment cost information

The Air Force may have awarded a multibillion C-17 sustainment contract without determining whether the services were being provided at “fair and reasonable prices,” according to a Defense Department inspector general audit released Monday.

Today's Inside the Army examines Lockheed Martin's European missile defense prospects:

Lockheed sees its missile-defense business fortunes on the rise in Europe

U.S. defense giant Lockheed Martin, along with its partner MBDA Germany, hopes to sign a contract for the Medium Extended Air Defense System with Berlin this year, as Poland also is showing renewed interest in the technology, according to company officials.

The Congressional Research Service takes a look at the Defense Department's end-of-year spending patterns:

Pentagon continues September spending spikes unabated

The Pentagon's tradition of major end-of-year spending spikes is unlikely to fade any time soon, despite repeated efforts to tamp down on the practice because of its tendency to generate waste and poor management, according to a recent report from the Congressional Research Service obtained by Inside Defense.

The Army is looking for money to revive the Abrams vehicle production line:

Army preparing war-budget revision to 'jump-start' Abrams, Bradley upgrades

Army leaders are preparing an adjustment to the fiscal year 2017 budget request for overseas contingency operations that is meant to "jump-start" the production of upgraded tanks and infantry fighting vehicles, a key official said.

Inside the Navy reports Boeing is keeping up with the Navy's demand for F/A-18G aircraft:

Navy Growler fleet grows to 160 aircraft; requirement for additional 20 still lingers

Four years after the Navy planned to cap production of its EA-18G Growler fleet at 114 aircraft, the Boeing production line continues to crank out new airborne electronic attack aircraft under a plan to deliver an eventual 160 -- a 40 percent hike -- with a recent Navy analysis delivered to Office of the Secretary of Defense that calls for even more Growlers.

We'll close out today's INSIDER with two more from Inside the Army:

Milley urges decentralization, accountability on acquisition

The Army chief of staff, who recently submitted a report to Congress advocating for greater autonomy of the services in acquisition, on March 10 made the case for greater decentralization and accountability, in hopes of accelerating the process.

Army forges ahead with Future Vertical Lift

As the Army envisions a long-term overhaul of its aviation platforms, work is proceeding on the first of five planned capability sets in the Future Vertical Lift family of systems, with a view to fielding in the 2030s.

Highlights from the front page of this week's Inside the Army.

1. Army leaders are preparing an adjustment to the fiscal year 2017 budget request for overseas contingency operations that is meant to "jump-start" the production of upgraded tanks and infantry fighting vehicles, a key official said.

Full Story: Army preparing war-budget revision to 'jump-start' Abrams, Bradley upgrades

2. The Army chief of staff, who recently submitted a report to Congress advocating for greater autonomy of the services in acquisition, on March 10 made the case for greater decentralization and accountability, in hopes of accelerating the process.

Full Story: Milley urges decentralization, accountability on acquisition

3. As the Army envisions a long-term overhaul of its aviation platforms, work is proceeding on the first of five planned capability sets in the Future Vertical Lift family of systems, with a view to fielding in the 2030s.

Full Story: Army forges ahead with Future Vertical Lift

4. U.S. defense giant Lockheed Martin, along with its partner MBDA Germany, hopes to sign a contract for the Medium Extended Air Defense System with Berlin this year, as Poland also is showing renewed interest in the technology, according to company officials.

Full Story: Lockheed sees its missile-defense business fortunes on the rise in Europe

Today's INSIDER begins with a story from the Satellite 2016 conference, held this week in National Harbor, MD.

Commercial satellite executives told Inside Defense that after years of working with the Pentagon, they'd still like to see better communication and planning.

Commercial satellite executives seek improved communication with government

As the Pentagon focuses on innovation, commercial satellite executives this week said they'd like to see military officials recognize and bolster their role.

Also, the Air Force is asking Congress for funds to arm the B-2 stealth bomber with a long-range variant of the service's supersonic, stealthy cruise missile -- pairing two of the U.S. military's most advanced offensive capabilities to give policy makers the option to attack high-value targets during the early stages of a campaign.

Air Force seeks new-start authority to arm B-2 with long-range, stealthy cruise missile

The Air Force is asking Congress for funds to arm the B-2 stealth bomber with a long-range variant of the service's supersonic, stealthy cruise missile -- pairing two of the U.S. military's most advanced offensive capabilities to give policy makers the option to attack high-value targets during the early stages of a campaign.

A recent Pentagon-level deep-dive review of the Air Force's next-generation Global Positioning System ground system did not yield a new service cost position -- as was expected.

Revised GPS OCX cost position still under review after deep dive

A recent Pentagon-level deep-dive review of the Air Force's next-generation Global Positioning System ground system did not yield a new service cost position as was expected, according to the service's top uniformed acquisition officer.

At an event this week, Lt. Gen. Christopher Bogdan, the F-35 program executive officer, speculated the next-generation bomber might use the same Pratt & Whitney engine as that of the F-35.

If so, he said, “Pratt & Whitney ought to be looking to drive the cost of the F135 engine down now that they have that other business."

P&W F135 engine may have applications for B-21, JSF official speculates

Pratt & Whitney's F135 engine may have a new application in the B-21 bomber, according to the F-35 Joint Strike Fighter program executive officer.

Additionally, Inside the Air Force reports that Air University's upcoming war games this year will examine a series of cost-cutting options for the Air Force.

Air University war games focus on refueling tanker alternative, reusable rockets

Air University's upcoming war games this year will examine a series of cost-cutting options for the Air Force, ranging from alternative refueling tankers to recoverable rocket bodies.

And members of the Senate Armed Services Committee are pushing Air Force officials for a near-term plan to ameliorate the service's burgeoning fighter pilot shortage, a deficit projected to increase to 834 by 2022.

Senate presses Air Force officials for fighter pilot shortage fix

Members of the Senate Armed Services Committee pushed Air Force officials on Tuesday for a near-term plan to ameliorate the service's burgeoning fighter pilot shortage, a deficit that is projected to increase to 834 by 2022.

We'll finish up with two more interesting reads from Inside the Air Force.

AFRL examining ways to streamline intelligence analysis

The Air Force Research Laboratory is looking to fuse data from multiple sensors to combat camouflage tactics and accelerate the intelligence analysis process using machine learning.

Air Force expects greatest COMSATCOM lessons from earliest pathfinders

Although the Air Force will need future funding to pull the trigger on a series of commercial satellite communication pathfinder efforts, some service leaders say they may be able to learn the most important lessons simply from planning those projects.

The Pentagon said today Army Gen. Curtis Scaparrotti, who heads U.S. Forces Korea, has been assigned supreme allied commander of Europe.

In addition to the NATO position, he will be assigned as commander of U.S. European Command. He would succeed Gen. Philip Breedlove.

In a statement issued today, Defense Secretary Ash Carter called Scaparrotti "one of the U.S. military's most accomplished officers and combat leaders."

"From 2011 to 2012, he commanded the ISAF Joint Command during 'the surge,' when there were more than 140,000 NATO troops in Afghanistan. During his tenure, NATO forces made great gains throughout Afghanistan, allowing time and space for the Afghan security forces to take over the fight," Carter added. "General Scaparrotti then returned to the Pentagon to serve as Director of the Joint Staff, leading and coordinating the efforts of our forces around the globe. General Scaparrotti's most recent assignment as Commander, US Forces Korea, further demonstrated his excellence as a soldier-statesman, skills he will need as he works closely with our most trusted Allies and partners in Europe."

We start today's INSIDER with a story on the preliminary findings from an ongoing Government Accountability Office study. The agency disclosed the early results as part of a March 9 statement to Congress.

GAO: Air Force Weather AOA includes incomplete assessment of key capabilities

Preliminary findings from an ongoing Government Accountability Office study reveal that the Air Force's recently completed analysis of alternatives for future weather systems may include incomplete assessments of two high-priority capabilities -- theater weather imagery and cloud characterization.

We have additional Air Force news in our story on the estimated cost for the service's KC-46A aerial refueling tanker development contract, which is more or less unchanged from last year.

Estimated price tag for KC-46 tanker development contract levels out at $6.4 billion

The estimated cost for the Air Force's KC-46A aerial refueling tanker development contract appears to be leveling out at $6.4 billion, more or less unchanged from last year, according to a service spokesman -- an assessment that holds prime contractor Boeing's exposure steady at $1.5 billion for cost growth beyond the contract ceiling price.

The F-35 joint program office is seeking to ensure a major role for small business in the program’s sustainment phase, a program official told Inside Defense this week.

F-35 program office promises ‘large role’ for small business

The F-35 joint program office is seeking to ensure a major role for small business in the program’s sustainment phase.

With the delivery of the Navy's 30-year shipbuilding plan to Congress "imminent," the service is also preparing a new force-structure assessment that will include the ship requirement number for the fleet, according to Chief of Naval Operations Adm. John Richardson.

CNO: Delivery of 30-year shipbuilding plan to Congress is 'imminent'

With the delivery of the Navy's 30-year shipbuilding plan to Congress "imminent," the service is also preparing a new force-structure assessment that will include the ship requirement number for the fleet, according to Chief of Naval Operations Adm. John Richardson.

We also have two new stories from Inside the Pentagon.

DOD preps reform package as McCain and Thornberry craft proposals

Defense Secretary Ash Carter is preparing to send Congress a raft of proposed reforms to the 1986 Goldwater-Nichols Act, while powerful armed services committee chairmen are readying their own potential changes to the 30-year-old law responsible for the Defense Department's present division of roles and responsibilities.

CENTCOM chief seeks new ways to train and equip Syrians to defeat ISIL

The Pentagon is seeking new ways to train and equip Syrians to help defeat the Islamic State of Iraq and the Levant following a failed effort last year, the head of U.S. Central Command told lawmakers this week.

Inside Defense has obtained the Navy's fiscal year 2017 unfunded priorities list sent to Congress, which we understand has not yet been officially transmitted to lawmakers by the Office of the Secretary of Defense.

The list lays out approximately $5.1 billion in unfunded priorities that were not included in the Defense Department's FY-17 budget request. As Inside the Navy reported this week, the items include $1.5 billion for an extra 14 F/A-18 Super Hornets; $433 million to complete funding for construction of a DDG-51 Arleigh-Burke destroyer; and $270 million for two F-35C carrier variant jets.

Other items of note include $81 million to finance an additional 99 Counter Electronic Attack Block II kits; $65 million to fund an additional destroyer modernization; $645 million to fund shortfalls in aviation and ship depot maintenance; $382 million in condition-based maintenance for critical building systems; and $165 million for three more Ship-To-Shore Connector craft.

The Pentagon is planning to release the final version of its cyber-incident reporting regulation for the defense industry by early fall.

As Inside Cybersecurity reports:

A Defense Department regulatory report issued this month states DOD will issue the final version of the regulation in the fourth quarter of the fiscal year, meaning before Sept. 30. Similarly, a DOD regulatory schedule issued late last year projected the rule would be issued in final form by late August. At the time, a Pentagon spokeswoman told Inside Cybersecurity that schedule was “just an estimate.” But this week a source tracking the effort said that target remains in play.

Defense officials are in the process of reviewing the many public comments DOD received in response to its second interim rule on cyber-incident reporting. Although the latest iteration gave defense contractors more time to heed new security mandates compared to the first interim rule, the defense industry remains concerned with various elements of the current regulation.