Wednesday, April 24, 2024
Inside Defense has obtained a Congressional Research Service memorandum on U.S. imports from Russia.
This issue has become contentious because of the Russian-made RD-180 rocket engine, used to power United Launch Alliance's Atlas V launch vehicle.
Sen. John McCain (R-AZ) has pushed for restricting the number of RD-180s that can be used in military space launches, while Sen. Richard Shelby (R-AL) has backed loosening those constraints.
Continuing coverage of the Air Warfare Symposium in Florida plus the DOD budget and more highlight this Friday INSIDER Daily Digest.
The Air Force has factored in DOD's "Third Offset" strategy into the service's budget plans:
Air Force five-year budget includes $2 billion for 'Third Offset'
ORLANDO, FL -- The Air Force's fiscal year 2017 budget includes approximately $2 billion across the future years defense program that aligns with the Defense Department's "Third Offset," an Air Force official said Friday.
AM General is looking to diversify:
Hove: AM General is 'going to become a much more diverse company'
AM General, the longtime maker of the humvee, will become far more diversified in the coming years, its new chief executive told Inside Defense this week.
The House Appropriations defense subcommittee chairman wants a higher defense budget:
Top House defense appropriator worries DOD's budget is too small
The head of the House Appropriations defense subcommittee expressed concern that the Pentagon's fiscal year 2017 defense budget is too small to address the global security challenges facing the United States.
The proposed "Arsenal Plane" is rather popular among some of the COCOMs:
Air Force: COCOMs need 'Arsenal Plane' capability as soon as possible
ORLANDO, FL -- Several combatant commanders are pushing to get the much-talked-about "Arsenal Plane" concept "as soon as possible," according to the head of Air Force Global Strike Command.
A JSF block buy is still possible in FY-17:
Lockheed says F-35 JPO needs to make FY-17 block buy decision in next six months
ORLANDO, FL -- Lockheed Martin's F-35 Joint Strike Fighter program manager said this week that a block buy among international partners is still possible in fiscal year 2017, but that shortened time frame is not the company's preference.
A potential downselect decision could put one of the LCS shipbuilders and the supporting industrial base "at risk of closure":
Navy looking at effect of LCS cut on industrial base
The Navy is initiating a study of the effect downselecting to one Littoral Combat Ship contractor will have on the shipbuilding industrial base and the LCS program itself, top service officials have told Congress.
Some military cyber news courtesy of our colleagues at Inside Cybersecurity:
Military wants cyber info-sharing hub for DOD transportation contractors
The arm of the Defense Department charged with hiring transportation contractors to provide critical logistics for the U.S. military is working to establish a cybersecurity information-sharing hub for industry that would provide participants some degree of anonymity, according to a U.S. Transportation Command official.
Top general: U.S. defense industry targeted by 'cyber espionage and sabotage'
Sophisticated cyber operations targeting the U.S. defense industrial base could seek not only to steal high-tech secrets but also to interfere with the development of major weapon systems, according to the Pentagon's top general.
A Boeing-Lockheed Martin team announced today that it will forgo further legal action against the Air Force's decision to award its $80 billion Long-Range Strike Bomber contract to Northrop Grumman.
“While we remain firmly convinced of the validity of the issues raised in our protest to the Government Accountability Office of the Long Range Strike-Bomber contract award to Northrop Grumman, the Boeing-Lockheed Martin team has decided not to pursue further challenges to that award, either through the GAO or in federal court,” according to a statement from Boeing. “This decision was taken, as always, with the best interests of our customer and the warfighter in mind.”
Meanwhile, the Air Force has re-named the LRS-B the B-21 and is touting its new place in the global security environment.
But turbulent skies could lie ahead as Senate Armed Services Chairman John McCain (R-AZ) has vowed to oppose the program.
The Pentagon is examining whether U.S. Cyber Command should be elevated to the status of combatant command, meaning it would no longer be subordinate to U.S. Strategic Command, Defense Secretary Ash Carter said Thursday.
As Inside Cybersecurity reports:
The current arrangement, in which CYBERCOM is a sub-unified command to STRATCOM, "works now, but it's not necessarily optimal, which is why we're looking at it," Carter said at a House Appropriations defense subcommittee hearing.
"We do have a reluctance about adding new headquarters staff, because one of the things that we're doing in this budget is cutting headquarters staff, and so we need to be careful about that," he said. "But whichever way that turns out, the command structure of CYBERCOM has an important future."
The head of CYBERCOM, Adm. Michael Rogers, is currently dual-hatted as the commander of the National Security Agency. The two organizations should remain "in the same place" so "they can interchange talent and draw on one another," Carter said.
The Air Force has designated the new Long-Range Strike Bomber the B-21, service Secretary Deborah Lee James said Friday.
James revealed the designation as well as a photo of prime contractor Northrop Grumman's winning design for the new bomber during her presentation at the Air Warfare Symposium in Orlando, FL. The service awarded Northrop a contract for the B-21 last October, but the airframe has been without a designation.
James said the service will crowd-source the task of naming the new bomber.
James said the B-21 will be crucial to the Defense Department's Third Offset strategy and the service's emphasis on global precision attack.
"Our fifth-generation global precision attack platform will give our country a networked sensor-shooter capability, enabling us to hold targets at risk in a way the world and our adversaries have never, ever seen," James said.
Here's a photo:
General Atomics said Thursday it has agreed to buy Miltec Corp., which provides defense and aerospace systems design, development, integration and test services, from Ducommun.
The business would become part of General Atomics' electromagnetic systems group and is meant to bolster the company's expertise in hypersonic vehicles, small satellites and related products. The acquisition, GA said, would also give it an increased presence in Huntsville, AL.
The top stories from this week's edition of Inside the Air Force:
1. Senate Armed Services Committee Chairman John McCain (R-AZ) has vowed to oppose authorization of the Air Force's Long-Range Strike Bomber contract to Northrop Grumman because the Pentagon has committed to a cost-plus arrangement, giving the $80 billion program a powerful enemy on Capitol Hill.
Full story: McCain vows to oppose Air Force's new bomber
2. Several combatant commanders are pushing to get the much-talked-about "Arsenal Plane" concept "as soon as possible," according to the head of Air Force Global Strike Command.
Full story: Air Force: COCOMs need 'Arsenal Plane' capability as soon as possible
3. The chief of Air Force Global Strike Command reaffirmed the service's commitment to the Long-Range Standoff Weapon after announcing plans to begin production of the Air-Launched Cruise Missile replacement in 2026 and reach initial operational capability by 2030.
Full story: Air Force to start Long-Range Standoff Weapon production by 2026
4. Lockheed Martin's F-35 Joint Strike Fighter program manager said this week that a block buy among international partners is still possible in FY-17, but that shortened time frame is not the company's preference.
Full story: Lockheed: F-35 JPO needs to make FY-17 block buy decision in next six months
While members of Congress fretted over whether Russia's request for more advanced nuclear weapons-monitoring sensors would pose a risk to U.S. security, Adm. Cecil Haney, head of U.S. Strategic Command, remained unflappable.
Russia has requested the use of new electro-optical sensors on their surveillance planes for flights over the United States as part of the Open Skies Treaty. The treaty, signed in 1992 by the U.S., Russia and 32 other nations after the Cold War, seeks to increase transparency and avoid armed escalation through sanctioned surveillance flyovers.
The electro-optical sensor transitions from a wet-film to digital processing and is the same type of sensor the U.S. military is installing on many of its aircraft.
During a Feb. 24 House Armed Services strategic forces subcommittee hearing, Rep. Mike Rogers (R-AL) asked Haney if Russia's request for the new sensor caused concern.
"As we look at how technology has developed, it's not surprising to me there would be a desire to use more advanced capabilities to conduct that Open Skies Treaty," Haney said. "While I'm concerned in terms of overflights, any ability of another to learn our critical infrastructure, I do have respect for said treaty, in which it allows for transparency and the ability of sharing that information."
Haney added that he would be part of the process to assess whether Russia will receive the additional sensor capability.
Raytheon is expressing concerns about the Pentagon's second interim rule on cyber-incident reporting, which gives defense contractors more time to implement new security requirements but still increases government oversight.
Inside Cybersecurity reports this week that the first interim rule on breach reporting and contracting for cloud services was issued last August in response to a congressional mandate and became effective immediately. It required contractors and subcontractors to report "cyber incidents that result in an actual or potentially adverse effect on a covered contractor information system or covered defense information residing therein, or on a contractor's ability to provide operationally critical support." Further:
But the regulation drew many complaints from industry, including calls for the Defense Department to reconsider its decision to have the new regulations focus on the standards in the National Institute of Standards and Technology's Special Publication (SP) 800-171, "Protecting Controlled Unclassified Information in Nonfederal Information Systems and Organizations," rather than NIST SP 800-53, "Security and Privacy Controls for Federal Information Systems and Organizations."
"There still are concerns regarding the significant increase in the depth and breadth of government oversight into contractor networks without the benefit of the close and cooperative collaboration between industry and the government that has served us well to date," Raytheon writes in a Feb. 11 letter to the Defense Department. "We believe many of our concerns about the interim rule could be addressed by such collaboration going forward."
The letter identifies Raytheon's concerns in several categories: versions, definitions, marking, applicability, process, security controls, suppliers, incident reporting, post-incident investigations and cost recovery.
Public comments on the second interim rule are due to DOD by the end of the month.
The Long-Range Strike Bomber and news from an Air Force conference in Florida lead off this Thursday INSIDER Daily Digest.
Don't expect Sen. McCain to sign off on the Air Force's Long-Range Strike Bomber anytime soon:
McCain vows to oppose Air Force's new bomber
Senate Armed Services Committee Chairman John McCain (R-AZ) has vowed to oppose authorization of the Air Force's Long-Range Strike Bomber contract to Northrop Grumman because the Pentagon has committed to a cost-plus arrangement, giving the potentially $80 billion program a powerful enemy on Capitol Hill.
Additional bomber news from the Air Warfare Symposium:
Gen. Rand: Air Force to deliver updated bomber roadmap in late March
ORLANDO, FL -- Air Force Global Strike Command will brief top leadership in late March on its plans to integrate the Long-Range Strike Bomber into its fleet.
The Congressional Budget Office thinks DOD's five-year spending plan could exceed BCA caps:
CBO: Pentagon's 2016-2020 spending plan could exceed BCA by $162B
The non-partisan Congressional Budget Office recently revealed analysis showing the Defense Department's projected spending plan for 2016-2020 could exceed spending caps set by the 2011 Budget Control Act by as much as $162 billion because of a variety of rosy assumptions based on congressional cooperation and weapon system costs.
Document: CBO presentation on 'prospects for DOD's budget over the next decade'
An overview of proposed FY-17 Defense Innovation Unit Experimental (DIUx) funding:
Carter's Silicon Valley outreach team funded at $210M over FYDP
Defense Secretary Ash Carter's Silicon Valley outreach team -- the Defense Innovation Unit Experimental (DIUx), is slated to be funded at $210 million over the next five years, according to Pentagon budget documents released last week.
Funding for a Conventional Prompt Global Strike capability has been doubled:
DOD seeks $181M for CPGS program, with flight test planned for FY-17
With the goal of testing a system designed to strike worldwide targets in under an hour using non-nuclear weapons, the Pentagon has more than doubled spending for the Conventional Prompt Global Strike capability development program.
An advanced targeting system prototype for the F-35 Joint Strike Fighter is scheduled for delivery this year:
Lockheed to deliver Advanced EOTS prototype this year
ORLANDO, FL -- Lockheed Martin expects to deliver a prototype of its advanced electro-optical targeting system this year -- a capability F-35 Joint Strike Fighter officials have said is a top priority for Block 4 modernization.
Welcome to Throwback Thursday, Inside Defense's weekly look back at what was happening on or around this day in years past.
In early March 2004, Sen. John McCain (R-AZ) was vocally criticizing the Air Force's plans to lease Boeing KC-767 refueling tankers.
According to an Inside the Air Force story at the time, McCain's opposition was a chief reason the circumstances of the proposal were being investigated by the Defense Department inspector general.
Already under fire from McCain, the Air Force had stepped back its original plan to lease 100 tankers, instead opting to lease 20 and buy 80.
Ultimately, the deal fell through after a Pentagon scandal landed an Air Force acquisition executive and a Boeing executive in jail.
Today, McCain announced he would oppose the Long-Range Strike Bomber deal, awarded to Northrop Grumman last year, because of its contract structure.
He told reporters that he would "not stand for cost-plus contracts."
"It is an evil that has grown and grown and grown over the years and I will not stand for it on any weapon system," McCain said. "Tell me one time you've had a cost-plus contract where . . . there hasn't been additional costs and I would reconsider. The mindset in the Pentagon that still somehow these are acceptable is just infuriating."
Full 2004 story: http://ow.ly/YKXys
Defense Secretary Ash Carter is testifying this morning before the House Appropriations defense subcommittee on the Pentagon's fiscal year 2017 budget request.
Here's an excerpt from his prepared testimony:
At this time last year, we were all facing the bleak prospect of looming budget sequestration, and the damage its return would do to our people and our mission. I’m grateful that our country’s leaders were able to come together last fall to avert that dismal future, and reach a budget deal that – after several years of fiscal turmoil and reductions – has allowed for greater investment in all our elements of national security and strength. That was what I urged since becoming Secretary of Defense, including in last year’s budget testimony before this committee, and given the threat environment we face around the world, forging that deal was the responsible thing to do. It allows our military personnel and their families to know their future more than just one year at a time, which they deserve. It lets our defense industry partners be more efficient and cutting edge, as we need them to be. And, perhaps most importantly, it sends a signal to the world – to friends and potential foes alike – of our nation’s strength and resolve.
To read his full testimony, click here.
BWX Technologies said sales in 2015 hit $1.4 billion, down from $1.5 billion the prior year. However, yearly profit reached $131.5 million, up from $29.4 million the prior year.
The company said its profit was boosted by improved margins in its nuclear energy segment, lower mPower spending and reduced corporate costs. BWX announced in 2014 it would restructure its mPower small modular reactor program "to reduce spending and focus on technology development," according to a company SEC filing.
In 2015, BWX said it incurred $16 million in costs related to this restructuring.
Here are some must-reads from this week's edition of Inside the Pentagon:
1. With the goal of testing a system designed to strike worldwide targets in under an hour using non-nuclear weapons, the Pentagon has more than doubled spending for the Conventional Prompt Global Strike capability development program.
Full story: DOD seeks $181M for CPGS program, with flight test planned for FY-17
2. Defense Secretary Ash Carter's Silicon Valley outreach team -- the Defense Innovation Unit Experimental (DIUx), is slated to be funded at $210 million over the next five years, according to Pentagon budget documents released last week.
Full story: Carter's Silicon Valley outreach team funded at $210M over FYDP
3. The non-partisan Congressional Budget Office recently revealed analysis showing the Defense Department's projected spending plan for 2016-2020 could exceed spending caps set by the 2011 Budget Control Act by as much as $162 billion because of a variety of rosy assumptions based on congressional cooperation and weapon system costs.
Full story: CBO: Pentagon's 2016-2020 spending plan could exceed BCA by $162B
There was a kerfuffle at a Senate hearing this morning over the cost of the Army's Armored Multi-Purpose Vehicle. During a hearing of the Senate defense appropriations subcommittee, Sen. Richard Durbin (D-IL) asked Army leaders to account for cost growth in the program, the service's effort to modernize its Vietnam-era M113s.
"We hear that your AMPV program is going to have, I don't know if it's a cost overrun, but an additional charge of $2.6 billion," Durbin said. "What was the reason for this cost growth of $2.6 billion in the AMPV program?"
Acting Army Secretary Patrick Murphy replied: "As far as the AMPV, I will get you back that information."
Here's the deal: AMPV has no cost growth.
For the fledgling program, which began engineering and manufacturing development slightly more than a year ago, the Army last March provided lawmakers an initial Selected Acquisition Report setting a baseline cost estimate of $1 billion for development and just over $12.8 billion for procurement -- or $13.8 billion. Then, two weeks ago, the Army submitted an FY-17 budget request with cost estimates that haven't changed: AMPV remains an estimated $13.8 billion acquisition.
So how did a powerful member of the Senate appropriations panel get the idea that AMPV is suffering cost growth?
Mea culpa: I think I can explain part of the confusion. Last year, late in the day on Feb. 17, 2015, I filed a story that inadvertently compared a GAO estimate of AMPV costs to an Army estimate and incorrectly reported the program was suffering from 25 percent cost growth. The next morning, on Feb. 18, 2015, the story was corrected -- with all mentions of cost-growth removed (and the changes acknowledged and explained).
End of story? It appears not. Andrew Feickert, a ground forces analyst at the Congressional Research Service, wrote an Oct. 28, 2015, report on the AMPV program noting that the Army "did not provide details regarding the almost $2.6 billion cost growth for the Army." While there is no citation for that figure, the preceding headline cites my corrected story -- which, again, removed all mention of cost growth.
Durbin's staff pointed to the CRS report as the basis for his question. -- Jason Sherman