The Insider

North Korea continues to put resources toward developing a nuclear missile capable of reaching the continental United States, according to a recent Pentagon report sent to Congress.

The report, released Feb. 12, comes on the heels of a North Korean nuclear test in January and a long-range rocket test earlier this month.

North Korea's key weapon for potentially striking the U.S. homeland remains the KN08 Intercontinental Ballistic Missile, which “if successfully designed and developed . . . would be capable of reaching much of the continental United States, assuming the missiles displayed are generally representative of missiles that will be fielded,” the report states.

“However, ICBMs are extremely complex systems that require multiple flight tests to identify and correct design or manufacturing defects,” the report continues. “Without flight tests, the KN08’s current reliability as a weapon system would be low.”

The report also highlights North Korea's cyber capabilities.

“North Korea has an offensive cyber operations (OCO) capability,” the report states. “Implicated in malicious cyber activity and cyber effects operations since 2009, North Korea probably views OCO as an appealing platform from which to collect intelligence and cause disruption in South Korea and other adversaries including the United States. North Korea likely views cyber as a cost-effective, asymmetric, deniable tool that it can employ with little risk from reprisal attacks, in part because its networks are largely separated from the Internet and disruption of Internet access would have minimal impact on its economy.”

The Pentagon names North Korea as a top threat to U.S. security in its recently released $583 billion budget request.

Tony Moraco, chief executive of Science Applications International Corp., said today federal contractors could play an important role in helping non-traditional players provide their technology to the Pentagon.

Speaking at a Northern Virginia Technology Council breakfast, Moraco said "getting non-traditional players in the game is important."

"If you are strictly commercial, finding a federal contractor partner may be a path that you consider," he said.

In turn, he added, federal contractors can be effective at helping commercial technologies get through the challenges of doing business with the government.

Federal agencies, he said, "not only need the technology, but they demand compliance around program management, system engineering, procurement requirements."

"You have to be compliant or you put your whole program at risk," Moraco added.

The U.S. Court of Federal Claims on Thursday denied Lockheed Martin's request to make Oshkosh halt all work on the Joint Light Tactical Vehicle until an ongoing dispute over the contract award is resolved.

The docket report in the case shows that Judge Charles Lettow issued a sealed order to that effect, asking all parties to submit a joint status report "addressing further proceedings in this action."

Lockheed believes its offering for the big-ticket vehicle program was unfairly evaluated when the Army and Marine Corps gave Oshkosh a production deal last summer.

Oshkosh celebrated announcement in a statement Friday morning.

"This decision is another indication that the U.S. Army conducted a thorough, methodical procurement process, and we are confident that the original JLTV contract award to Oshkosh will be upheld," Wilson Jones, Oshkosh president and chief executive officer, was quoted as saying, adding: "The Oshkosh JLTV team, including our employees and hundreds of suppliers, is pleased to continue our work to deliver JLTVs to our nation's Soldiers and Marines."

(Need more JLTV news? Check out our Notification Center, where you can sign up to receive email alerts whenever a related story is posted.)

The Obama administration's shift in focus to the vast expanse of the Asia-Pacific region "necessitates a second look at operational energy priorities," according to the Pentagon's latest Operational Energy Strategy.

The Defense Department's emphasis on buying oil and gas "as close as possible to the point of use" also poses inherent risks for the U.S. military, the report reads, adding:

In response to these challenges, the 2016 Operational Energy Strategy takes advantage of improved technology and the Department's steadily improving understanding of operational energy challenges to ensure the consistent delivery of energy to the warfighter.

Specifically, the Department will pursue the following objectives:

*       Increase future warfighting capability by including energy throughout future force development.

*       Identify and reduce logistics and operational risks from operational energy vulnerabilities.

*       Enhance the mission effectiveness of the current force through updated equipment and improvements in training, exercises, and operations.

We kick off this Thursday INSIDER Daily Digest with continued coverage of DOD's FY-17 budget submission.

The Pentagon continues to look for ways to trim its spending:

DOD reforms expected to save billions of dollars over next five years

The Pentagon intends to save billions of dollars over the next five years through a series of reform initiatives that include reducing headquarters activities and optimizing information technology, among others, according to President Obama's fiscal year 2017 budget overview documents released Feb. 9.

The Navy's UCLASS program has been renamed CBARS:

New details surface about Navy's unmanned aerial tanker program

The Navy revealed new details about its most highly anticipated new-start program -- an unmanned airborne tanker operating from an aircraft carrier -- during the Feb. 9 budget rollout.

(Need more unmanned systems news? Check out our Notification Center, where you can sign up to receive email alerts whenever a related story is posted.)

The Navy wants to speed up the delivery of prototype systems:

Navy seeks $55 million for new rapid prototyping fund

The Navy is requesting $55 million in fiscal year 2017 to establish a dedicated funding line for prototyping projects in an effort to more quickly deliver in-demand weaponry to the fleet outside of the normal acquisition process.

Deploying the Marine Corps JSF variant won't be easy:

Marines will be 'stretched thin' during first-ever F-35 deployment

The Marine Corps will be "stretched thin" on spare parts during its first-ever Joint Strike Fighter operational deployment to Japan because of funding cuts the Navy and Congress made two years ago, according to a program official.

Not having a multiyear procurement plan for JSF could be risky:

F-35 JPO: Pentagon opted out of FY-17 investment in JSF multiyear

The Defense Department's fiscal year 2017 budget does not include near-term plans to invest in a multiyear F-35 procurement deal, but buy-in from international partners will keep it alive should the United States opt in in future years.

The Air Force gave out a few -- very few -- details about its new Long-Range Strike Bomber program:

Air Force reveals $12 billion funding plan for new bomber -- and little else

The Air Force has reworked the Long-Range Strike Bomber funding profile, proposing a five-year, $12 billion research and development allocation between fiscal years 2017 and 2021 -- a $1.7 billion reduction compared to last year's outlook -- and reflecting the first budget request to factor Northrop Grumman as prime contractor on the high-priority aircraft project.

Keep an eye out for the Air Force's upcoming Huey helicopter replacement strategy:

Air Force steps away from modified service aircraft for Huey replacement

The Air Force could lay out its acquisition strategy for the UH-1N replacement this spring, a plan that has moved away from a modified service aircraft option toward a possible sole-source acquisition.

The Defense Department this week announced a pair of Aegis missile defense contract awards.

On Feb. 10, the Army awarded Alpharetta, GA-based AMEC Programs a $183 million contract for the third phase of building the Aegis Ashore missile defense system based in Poland.

"Bids were solicited via the Internet with four received," according to an Army contract announcement, which adds: "Fiscal [years] 2015 and 2016 military construction; research, development, testing, and evaluation; and other procurement funds in the amount of $173,874,936 were obligated at the time of the award."

The contract has an estimated completion date of April 9, 2018, the statement reads.

On the same day, the Missile Defense Agency awarded Lockheed Martin's Moorestown, NJ-based Mission Systems and Training business unit a $40 million contract modification to provide "support of advanced concept initiatives by the Aegis Ballistic Missile Defense (ABMD) Program Office to identify technology for introduction into present and future ABMD baselines and upgrades."

The new modification increases the total cumulative contract value to $2.18 billion, according to MDA.

Work on the contract is expected to be completed by Oct. 27, 2019, the agency said. 

"Fiscal 2015 research, development, test and evaluation funds in the amount of $50,000 are being obligated at the time of award, and will expire at the end of the current fiscal year. Fiscal 2016 research, development, test and evaluation funds in the amount of $6,400,000 are being obligated at the time of award," the statement reads.

According to an overview of MDA's FY-17 budget request submitted to Congress this week:

MDA requests $630 million for EPAA Phase 3 in FY 2017. This includes the deployment of a second Aegis Ashore site in Poland, upgrade of the Aegis Ballistic Missile Defense (BMD) weapon system, and delivery of a new SM-3 variant, the Block IIA. Aegis Ashore construction for the Poland site is scheduled to begin in FY 2016, with a [Technical Capability Declaration] by the end of calendar year 2018. For EPAA Phase 3, Aegis Ashore sites and Aegis BMD ships will be capable of launching SM-3 Block IA, IB, and IIA variants, providing improved defensive coverage against short- through intermediate-range threats.

MDA requests $514 million in procurement for Aegis BMD, which plays a critical role in both homeland and regional defense. MDA will procure 35 Aegis SM-3 Block IB missiles in FY 2017, for a total of 247 SM-3 Block IB missiles procured by the end of FY 2017. MDA will deliver 39 SM-3 Block IB missiles to the Fleet, for a delivery total of 146 missiles.

MDA requests $73 million of Operation and Maintenance funding for the Aegis BMD program to perform missile recertification, repair eff orts, demilitarization, and Ordnance Assessment/Surveillance. This funding includes BMD Computer Program, Ship Equipment, and Aegis Ashore - Romania sustainment, as well as Fleet integration support.

Orbital ATK said today it has opened a regional office in Singapore, marking the company's third new location abroad in the past three months.

In a statement, Orbital ATK said it's "following a deliberate process of increasing its availability to and direct engagement with customers and industry partners."

"The Singapore office will enable closer and more in-depth support for all Orbital ATK customers in the region," the contractor added.

Orbital ATK also has country offices in England, Saudi Arabia and the United Arab Emirates.

The contractor's push comes as many of the largest contractors are seeking bolstered sales abroad. Raytheon, for instance, earlier this month reported international sales made up 31 percent of total sales in 2015, marking a new high.