The Insider

By Tony Bertuca
February 23, 2016 at 10:29 AM

The Defense Department formally submitted the Obama administration's plan for closing the Guantanamo Bay detention facility today, a proposal that would allegedly save $335 million over the next 10 years and $1.7 billion over 20 years, according to a statement from Pentagon Press Secretary Peter Cook.

"The plan does include ranges of costs for closure, including low-end and high-end potential one-time costs and recurring costs," he said. "It also discusses savings that would be achieved by closure. The savings range reflects differing variables, like location selected and differing options in detention models."

Recurring costs at Guantanamo would be between $65 million and $85 million higher annually than at a U.S. detention facility, according to Cook.

"The one-time transition costs would be offset within three to five years due to the lower operating costs of a U.S. facility with fewer detainees," he said.

Cook, however, acknowledged that there "are currently statutory provisions restricting the transfer of Guantanamo detainees to the United States and the use of funds to build or modify facilities for such transfers," but adds that "the administration looks forward to working with Congress to lift those restrictions."

The plan does not endorse a specific facility to house Guantanamo detainees and the administration "seeks an active dialogue with Congress on this issue to identify the most appropriate location as soon as possible," Cook said.

Many in Congress are expected to oppose the administration's proposal and House Speaker Paul Ryan (R-WI) has called any plan to re-locate Guantanamo-based detainees to the United States a "non-starter."

By Marjorie Censer
February 22, 2016 at 5:10 PM

General Dynamics Mission Systems said today it has purchased Bluefin Robotics, which manufactures unmanned undersea vehicles.

In a statement, Chris Marzilli, president of the GD business unit, said Bluefin's underwater technologies align with GD's experience in undersea systems integration. The deal, he said, would position the company well to support the Navy.

Bluefin will become part of the GDMS maritime and strategic systems business line. The company said it would not disclose the price it paid.

By John Liang
February 22, 2016 at 12:37 PM

We kick off this Monday INSIDER Daily Digest with some budget news and more.

DOD issued its defense-wide FY-17 RDT&E and procurement budget books:

DOD's defense-wide FY-17 RDT&E budget justification books

DOD's defense-wide FY-17 procurement budget justification books

A preview of how DOD plans to fund its Strategic Capabilities Office:

Pentagon plans $2.1B for Strategic Capabilities Office investments over FYDP

The Pentagon is planning to fund the Strategic Capabilities Office to the tune of $2.1 billion over the next five years in the hopes of supporting the secretive outfit's efforts to develop "game-changing" capabilities intended to give the United States a technological edge over emerging global threats, according to new budget documents that outline the SCO's planned investments.

Keep an eye out for a Defense Science Board study that's currently underway:

Kendall commissions 'gray zone' study in search of potential new playbook, technology

An influential Pentagon advisory panel is set to tackle the "gray zone" -- potentially laying the groundwork to formally codify an entirely new conflict paradigm for U.S. military planners alongside nuclear, conventional, and counter-terrorism operations -- in a new study that seeks to identify, among other things, new planning techniques and technologies the Defense Department might develop.

Document: DSB terms of reference memo for constrained military ops study

A look at the Army's recent Unified Quest campaign:

Speed of global security 'events' has Army questioning its organization

As global events affecting U.S. national security unfold increasingly quickly, the Army has begun wondering if its organizational principles have kept pace, according to service officials.

Some lawmakers don't want the Army to shrink below a certain size:

House bill on troop numbers may force Army to 'regroup,' bear additional costs

Legislation introduced by members of the House Armed Services Committee that would boost the end strength of the active Army to 480,000 at the end of fiscal year 2016 would force the Army to "regroup," as its FY-17 budget is predicated on reducing to 460,000, according to service budget officials.

Expect the Army to take delivery of some up-gunned Strykers in the middle of next year:

Army expects to take delivery of up-gunned Strykers beginning in July 2017

The Army expects to take delivery of 83 Stryker vehicles outfitted with 30 mm cannons over the course of one year, starting in July 2017, newly released service budget documents indicate.

The Army wants new engine concepts for its next-generation helicopter:

Army seeks proposals on Future Vertical Lift engines

The Army is seeking new engine concepts to support its proposed Future Vertical Lift (FVL) family of aircraft, which is intended to dramatically outstrip the speed and range of existing platforms.

By Tony Bertuca
February 22, 2016 at 11:59 AM

The week ahead is dominated by congressional hearings on the FY-17 defense budget, the most high-profile of which features Defense Secretary Ash Carter and Chairman of the Joint Chiefs Gen. Joseph Dunford appearing before House appropriators.

Tuesday

The Senate Armed Services Committee will hear from the chief of U.S. Pacific Command and the chief of U.S. forces in Korea.

The Senate Armed Services strategic forces subcommittee will hold a hearing with Defense and Energy department officials on atomic energy defense activities and programs.

Wednesday

The House Armed Services Committee will hold a hear from the chief U.S. Pacific Command and the chief of U.S. forces in Korea on challenges in the the Asia-Pacific region.

The House Armed Services emerging threats and and capabilities subcommittee will hear from Pentagon officials on fiscal year 2017 science and technology investments.

The House Armed Services strategic forces subcommittee will hear from U.S. Strategic Forces Command and the Pentagon's principal deputy under secretary for policy on U.S. strategic forces posture.

Thursday

The House Appropriations defense subcommittee will hear from Carter, Dunford and Pentagon Comptroller Mike McCord on the FY-17 budget.

Link: http://1.usa.gov/1TvkvBZ

The House Armed Services Committee will hear from chief of U.S. European Command on strategic challenges and deterrence in Europe.

The House Armed Services seapower subcommittee will hear from Navy officials on the FY-17 budget.

BWX Technologies is set to discuss its fourth-quarter earnings at 8:30 a.m.

Friday

The House Armed Services readiness subcommittee will hear from Army officials on the FY-17 budget.

Link to all House Armed Services Committee hearings: http://1.usa.gov/1Q6nKgI

Link to all Senate Armed Services Committee hearings: http://1.usa.gov/RmEbep

By Courtney Albon
February 22, 2016 at 11:26 AM

Raytheon announced Monday that it will partner with Alenia to offer the T-100 aircraft as part of its solution for the Air Force's competition to build a next-generation trainer.

The company is partnering with Alenia, CAE and Honeywell Aerospace to deliver a solution that combines the T-100 aircraft with a "leading-edge," ground-based training system, according to a press release issued Feb. 22.

"Our affordable, low risk, open systems solution combines a proven aircraft with a suite of fully integrated training technologies. Our team is best positioned to bring the essential experience, capabilities and core competencies together to meet the United States Air Force's mission requirements," Rick Yuse, Raytheon's president of space airborne systems said in the release.

Alenia and CAE had previously partnered with General Dynamics for the T-X trainer competition, but GD withdrew from the partnership last year. The new, Raytheon-led team will compete against a Northrop Grumman-BAE Systems team, a Boeing and Saab team as well as a Lockheed Martin-Korea Aerospace Industries team.

The Air Force expects to award a contract for T-X in fiscal year 2017.

By Sebastian Sprenger
February 22, 2016 at 9:05 AM

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

1. As global events affecting U.S. national security unfold increasingly quickly, the Army has begun wondering if its organizational principles have kept pace, according to service officials.

Full Story: Speed of global security 'events' has Army questioning its organization

2. Legislation introduced by members of the House Armed Services Committee that would boost the end strength of the active Army to 480,000 at the end of fiscal year 2016 would force the Army to "regroup," as its FY-17 budget is predicated on reducing to 460,000, according to service budget officials.

Full Story: House bill on troop numbers may force Army to 'regroup,' bear additional costs

3. The Army expects to take delivery of 83 Stryker vehicles outfitted with 30 mm cannons over the course of one year, starting in July 2017, newly-released service budget documents indicate.

Full Story: Army expects to take delivery of up-gunned Strykers in July 2017

4. The Army is seeking new engine concepts to support its proposed Future Vertical Lift (FVL) family of aircraft, which is intended to dramatically outstrip the speed and range of existing platforms.

Full Story: Army seeks proposals on Future Vertical Lift engines

By Lee Hudson
February 22, 2016 at 9:00 AM

OCO spending and the Ford-class aircraft carrier are among the highlights of this week's Inside the Navy:

1. A top Democrat on the House Armed Services Committee says increasing fiscal year 2017 Overseas Contingency Operations funding above the $59 billion requested by the Obama administration may not be a total non-starter for members of his party on the panel.

Full Story: Courtney: House Dems may not be staunchly opposed to OCO increase

2. Delivery of the Navy's multibillion-dollar Ford-class aircraft carrier lead ship may be delayed by up to three months, according to the shipbuilder and fiscal year 2017 budget justification documents.

Full Story: Ford-class aircraft carrier delivery may be delayed up to three months

3. After discovering the MQ-8 Fire Scout's landing system is susceptible to failures the Navy is looking for new technologies to augment the existing approach.

Full Story: During integration Navy identified MQ-8 landing system prone to failures

By Marjorie Censer
February 19, 2016 at 4:18 PM

Kratos Defense & Security Solutions said today it is consolidating certain facilities used by its modular systems division and will close its Charleston Marine Container manufacturing plant.

"The facility consolidation is being driven by the need to improve MSD manufacturing efficiencies, operational performance, profit margins and cash flow," the company said.

In a statement, Eric DeMarco, Kratos' chief executive, said the company will retain the plant so that it can be reopened when there is enough new business.

For more on Kratos, check out Inside Defense's latest story on the company: http://insidedefense.com/daily-news/seeking-growth-kratos-chief-says-company-investing-new-technology

By Justin Doubleday
February 19, 2016 at 3:11 PM

A top Democrat on the House Armed Services Committee says increasing fiscal year 2017 overseas contingency operations funding above the $59 billion requested by the Obama administration may not be a total non-starter for members of his party on the panel.

In a Feb. 19 interview with Inside Defense, Rep. Joe Courtney (D-CT), the ranking member on the House Armed Services seapower subcommittee, said Democrats on the full committee have yet to caucus to discuss the Pentagon's budget request released Feb. 9.

But Courtney said he believes Democrats may not be completely opposed to an OCO increase. The issue thus far has pitted the administration against House Armed Services Committee Chairman Mac Thornberry (R-TX), who argues the budget agreement reached last year set $59 billion as a floor for OCO, not a ceiling. Thornberry wants to increase OCO funding by as much as $23 billion above the administration's request.

“I haven't talked to people explicitly yet, but to me, the take-away is I think people are going to be very cautious and recognize that this issue is very fluid in terms of how it actually plays out,” Courtney said of committee Democrats. “I don't think people are going to be digging in with a staunch position in opposition to looking at OCO, more OCO, as this thing unfolds.”

Some of the most pressing questions borne from the Navy's budget request, Courtney noted, hinge on the final OCO number. Read about the rest of the interview with the Connecticut lawmaker in the Feb. 22 issue of Inside the Navy.

By
February 19, 2016 at 1:24 PM

Kicking off this Friday INSIDER Daily Digest with important developments in key missile defense and space programs.

MDA scraps plan for $1.8B block buy of Raytheon missile, slashes procurement

The Missile Defense Agency has shelved plans for a block buy of Raytheon's Standard Missile-3 Block IB interceptor -- a potential $1.8 billion deal -- in an apparent change of course underscored by a procurement cut in fiscal year 2017 that slashes quantities well below the objective annual production rate.

GAO: Claims of GMD effectiveness shaky, future acquisition plans questionable

Despite claims of progress in developing a missile defense system capable of intercepting North Korean and Iranian intercontinental ballistic missiles, the Missile Defense Agency has not yet proved the Ground-based Midcourse Defense system can defend the homeland, according to a government watchdog.

Lt. Gen. Greaves: GPS OCX is DOD's most troubled program

The commander of the Air Force's space acquisition office on Friday declared the ground system for the next-generation of Global Positioning System satellites the Defense Department's most troubled program.

More daily news:

Vectrus expands focus on IT and network communications work

Seeking growth, Vectrus is zeroing in on IT and network communication services, opening a new office in Reston and hiring a Harris executive to lead its efforts in that market.

GAO pushes Pentagon to provide increased visibility into future services spending

The military must improve how it plans future spending on services contracts, given that they make up more than half of the Pentagon's contract obligations, a new Government Accountability Office report says.

Air Force Research Laboratory continues CHAMP miniaturization plans

Despite calls from Congress to field the Counter-electronics High Power Microwave Advanced Missile, the Air Force's proposed fiscal year 2017 budget outlines plans to prolong research efforts for the program.

New in the document library:

Navy's cyberspace instruction

The Feb. 10, 2016, Navy instruction "establishes policy and assigns responsibilities . . . for management and qualification of the Department of the Navy (DON) Cyberspace Information Technology and Cybersecurity Workforce (Cyber IT/CSWF)."

CRS report on the Navy's Virginia-class submarine procurement effort

The Feb. 12, 2016, Congressional Research Service report -- originally obtained by Secrecy News -- discusses the Navy's Virginia-class submarine procurement effort.

GAO report on services contracting

The Feb. 18, 2016, Government Accountability Office report finds that Pentagon leadership and Congress have “limited” insight into future spending on contracted services, even though these services make up more than half of total obligations.

By Courtney Albon
February 19, 2016 at 12:24 PM

Here are a few must-reads from this week's edition of Inside the Air Force:

The Air Force said this week it is already investing in many of the technology areas highlighted as part of the Defense Department's “Third Offset” planning.

Full story: Air Force FY-17 investments align with 'Third Offset' strategy

The F-22 program office says it has the funding it needs to upgrade a key testing simulator -- despite recent concerns from the Pentagon's top weapons tester that the program would not complete the needed improvements on time.

Full story: F-22 program office confident it can complete near-term ACS upgrades

The Air Force's FY-17 budget continues its efforts to shore up depleted supplies of key munitions -- both for near-term operations and future air-to-air conflicts.

Full story: USAF budget works to address munitions gaps, future competitors

By Marjorie Censer
February 19, 2016 at 10:15 AM

Booz Allen Hamilton said today that Kevin Cook, its chief financial officer, will retire, and Lloyd Howell, a longtime company executive who leads the contractor's civil commercial group, will succeed him, starting July 1.

Cook spent 23 years at Booz Allen, the company said.

Howell, 49, joined Booz Allen in 1988 as a consultant. He left in 1991 to earn his MBA, worked for Goldman Sachs and then returned to Booz Allen in 1995. He was named a partner in 2000 and has led the civil commercial group since 2013.

By Tony Bertuca
February 18, 2016 at 4:56 PM

The Pentagon has released its justification books for defense-wide procurement and research, development, test and evaluation programs.

The documents include funding for all agencies and programs overseen by the Office of the Secretary of Defense.

By Marjorie Censer
February 18, 2016 at 3:07 PM

As other prime contractors divest their IT services businesses, General Dynamics sees "no compelling reason" to do the same, the contractor's chief financial officer said at a conference today.

"It's clearly been a dynamic sector of the environment," Jason Aiken said of IT services at a Barclays conference in Miami Beach, FL.

Lockheed Martin, for instance, announced earlier this year it would spin off its IT services unit and combine it with Leidos, while L-3 Communications sold its services business to CACI International.

But General Dynamics, Aiken said, sees the company's information systems and technology unit as a business "that's of scale" and as "lean as they can be."

"It's a tremendous cash-generation engine," he said. "And it's a low level [of] invested capital."

"We like what it does to our portfolio," Aiken added. "We like where we are right now."

By Lee Hudson
February 18, 2016 at 12:40 PM

The Navy's fiscal year 2017 budget request is a “great indication” the Ohio-class replacement ballistic missile submarine program is on track and discussion will continue this year on how to fund the program, according to Huntington Ingalls Industries Chief Executive Officer Mike Petters.

The service in its FY-17 request set aside $773 million in advanced procurement to pay for the lead ship that will be built in FY-21 and $11.7 billion over the future years defense plan, according to budget documents.

Petters said during a Feb. 18 quarterly earnings call the discussion will continue this year on whether the next-generation ballistic submarine will be built using funds in the Navy's shipbuilding budget or using other monies within the Defense Department by using the National Sea-based Deterrence Fund congressional authorizers created.

In the years the Navy builds the Ohio-class replacement sub the service will also build one Virginia-class attack submarine per year. Petters said it is more of a  “complex challenge” for the industrial base to build one Ohio-class replacement sub and one Virginia-class sub than building two Virginia-class subs per year. -- Lee Hudson