The Insider

Inside the Air Force highlights
By Courtney Albon
January 22, 2016 at 9:00 AM

Some must-reads from this week's issue of Inside the Air Force:

1. Northrop Grumman talked to ITAF this week about its plan to bring the Global Hawk to parity with the U-2 by the end of 2016.

Full story: Northrop's Global Hawk to demonstrate all three U-2 sensors this year

2. After assessing the capabilities of commercial spaceports throughout the country, the Air Force has determined that its federally-owned launch facilities are most capable of reliably launching national security space missions.

Full story: Air Force: Most commercial spaceports can't meet NSS launch needs

3. In a report to Congress last month, the Defense Department provided an update on Air Force and Navy efforts to build commonality into plans for future strategic missile upgrades.

Full story: Air Force, Navy team examining commonality for future strategic missiles

The INSIDER daily digest
By John Liang
January 21, 2016 at 3:00 PM

We start off this Thursday INSIDER Daily Digest with news on the congressional fight over the defense budget and more.

Expect to see lawmakers propose an increase to the Pentagon's overseas contingency operations account:

Thornberry and Price prepare for Obama's defense budget

House GOP defense hawks are working through Armed Services Committee Chairman Mac Thornberry (R-TX) and his budget committee counterpart Tom Price (R-GA) to increase fiscal year 2017 defense spending via the overseas contingency operations account should the Obama administration propose amounts they perceive to be too low, according to sources.

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

Don't expect DOD to worry too much about slowing defense industry consolidation:

AIA: No 'sweeping changes' expected from Pentagon on consolidation

Following a meeting with a top Pentagon official last week, an Aerospace Industries Association official said the group does not expect the Defense Department to propose any "sweeping changes" or seek new authorities related to slowing industry consolidation.

A Senate subcommittee met this week on a now-defunct Afghanistan task force:

Senate subcommittee targets Pentagon task force accused of wasting millions

The inspector general evaluating the Defense Department's former Task Force for Business and Stability Operations and the Pentagon official charged with overseeing matters related to the task force traded barbs during a congressional hearing this week.

Document: Senate hearing on the TFBSO

Watch for an increase to U.S. Special Operations Command's budget:

SOCOM acquisition chief talks innovation amid planned R&D budget boost

U.S. Special Operations Command is primed for a "significant" increase in its research and development funding in fiscal year 2017, according to the command's acquisition executive.

Keep an eye on the domestic solid rocket motor industrial base:

DOD: Domestic solid rocket motor industrial base fragile, 'atrophying'

The Pentagon is concerned about the domestic solid rocket motor industrial base as budgets continue to be strained, the workforce ages and competitive opportunities are limited, according to a recent report sent to lawmakers by Defense Department acquisition chief Frank Kendall.

(Stay tuned for our coverage next week, when the Senate Armed Services Committee holds a hearing on military space programs and the use of Russian-made rocket engines.)

A primer on how much money DOD plans to spend on cooperative threat reduction:

DOD to spend $71.7M on cooperative threat reduction program

The Pentagon intends to obligate $71.7 million in fiscal year 2016 for the cooperative threat reduction program funding under the FY-16 Continuing Appropriations Act, with a majority of those funds split between cooperative biological engagement and proliferation prevention, according to a recent report sent to lawmakers.

DOD is figuring out what the proposed Joint Regional Security Stacks would look like:

Defense officials hold summit to discuss operational concept of JRSS

Defense officials met at a summit last week to discuss what the operational concept of the Joint Regional Security Stacks would look like, according to defense officials.

Throwback Thursday -- Eric Fanning
By Marjorie Censer
January 21, 2016 at 12:13 PM

Welcome to Throwback Thursday, Inside Defense's weekly look back at what was happening on or around this day in years past.

In late January 2014, Eric Fanning ended his stint as acting Air Force secretary after Deborah Lee James was ceremonially sworn in. Her confirmation had been held up in the Senate for almost six months.

At the event, military officials paid tribute to Fanning, who filled in during the lengthy process.

Today, Fanning faced his own confirmation hearing to become Army secretary. That hearing came shortly after Senate Armed Services Committee Republicans argued Fanning should no longer be in the role in an acting capacity. The Pentagon then temporarily removed him from the post.

Full 2014 story: Deborah Lee James Ceremonially Sworn in Six Months After Nomination

Gates on GOP prez field: 'We really are in trouble'
By Jason Sherman
January 21, 2016 at 11:57 AM

NEW YORK -- Robert Gates, Republican national security luminary and former defense secretary, excoriated GOP presidential frontrunners this week for foreign policy positions he said were detached from reality, singling out the hyper-bellicose rhetoric of real estate developer and reality television personality Donald Trump and Texas Sen. Ted Cruz for particular scorn.

"I think middle school kids would be embarrassed by the level of dialogue going on in the national campaign about how we deal with the problems that we are facing," Gates said Jan. 20 during remarks at the Council on Foreign Relations in New York. "I think these men and women are making these broad pronouncements; they clearly don't know what they're talking about."

Without naming names, the former defense secretary alluded to statements by the current leaders in the GOP nomination race about how both would deal with ISIL in Syria and Iraq if elected president, including Trump's Nov. 12 assertion in Fort Dodge, IA, that "I would bomb the shit out of them; I would just bomb those suckers," and Cruz's Dec. 5 pledge to "carpet-bomb [ISIL] into oblivion; I don't know if sand can glow in the dark, but we're going to find out."

"This is not a particularly sophisticated level of analysis of the challenges that we face," said Gates. "The thing that I find disappointing -- and I realize that politicians have to put spin on things -- they do a disservice in not being honest with the American people, that taking on a problem like ISIS, and the extremism associated with ISIS, is complex, it is going to be hard and it's going to take a lot of time. And it is going to take some sacrifice."

"And there are no easy solutions," said Gates, who served as defense secretary from 2006 to 2011, spanning the second George W. Bush administration and Barack Obama's first term. "And there certainly are no quick solutions. Now, the worrying thing is they actually believe what they're saying. And if that's the case, we really are in trouble. So, we're in the situation where the optimistic interpretation is: they're just being cynical and opportunistic."

Gates was speaking as part of a publicity tour to promote his latest book, "A Passion for Leadership."

Possible $2B sale of F-16 weapons and support for Iraq approved
By Courtney McBride
January 21, 2016 at 11:46 AM

The State Department has approved the potential foreign military sale of "F-16 weapons, munitions, equipment, and logistics support" to the Iraqi government, at an estimated cost of $1.95 billion, according to a Jan. 20 Defense Security Cooperation Agency statement.

The proposed sale is a response to a request from the Iraqi government, which "requires these additional weapons, munitions, and technical services to maintain the operational capabilities of" 36 previously purchased F-16 aircraft.

According to the DSCA statement, the major defense equipment includes, but is not limited to: Twenty Joint Helmet Mounted Cueing Systems; 24 AIM-9M Sidewinder missiles; 150 AGM-65D/G/H/K Maverick missiles; 14,120 500-lb General Purpose (GP) bomb body/warheads; and 2,400 2,000-lb GP bomb body/warheads.

"This proposed sale contributes to the foreign policy and national security of the United States by helping to improve the security of a strategic partner," according to DSCA. "This proposed sale directly supports Iraq and serves the interests of the people of Iraq and the United States." The agency notes that U.S. military readiness will not be adversely affected.

"Implementation of this proposed sale requires approximately four hundred (400) U.S. Government and contractor personnel to reside in Iraq through calendar year 2020 as part of this sale to establish maintenance support, on-the-job maintenance training, and maintenance advice," the statement reads.

Lockheed Martin and Raytheon are among nine principal vendors for the proposed transaction.

DSCA notified Congress of the possible sale on Jan. 15.

Engility forecasts flat sales
By Marjorie Censer
January 21, 2016 at 9:31 AM

Engility said today it expects its fiscal year 2016 revenue to be roughly the same as FY-15 sales, citing the end of some existing contracts as well as a continued decline in overseas work.

"We believe the market is beginning to stabilize," Tony Smeraglinolo, Engility's chief executive, said during a Thursday morning call with analysts. He said the company plans to reinvest, particularly boosting its business development efforts.

"We expect them to drive growth in 2017 and beyond," he said of the investments, although he noted they could hurt FY-16 profitability.

Engility also reported it anticipates a non-cash goodwill impairment charge of $125 million to $250 million in FY-15 "as a result of declines in its legacy DOD business."

The company's 2016 plans include $40 million of sales related to in-theater work, down from $55 million in FY-15.

Inside the Pentagon highlights
By Courtney McBride
January 21, 2016 at 9:00 AM

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

1. U.S. Special Operations Command is primed for a "significant" increase in its research and development funding in fiscal year 2017, according to the command's acquisition executive.

Full story: SOCOM acquisition chief talks innovation amid planned R&D budget boost

2. The Pentagon is concerned about the domestic solid rocket motor industrial base as budgets continue to be strained, the workforce ages and competitive opportunities are limited, according to a recent report sent to lawmakers by Defense Department acquisition chief Frank Kendall.

Full story: DOD: Domestic solid rocket motor industrial base fragile, 'atrophying'

3. The Defense Information Systems Agency hopes to create a center of excellence to help mission partners with their enterprise resource planning systems, according to an agency official.

Full story: DISA eyes center of excellence for enterprise resource planning systems

The INSIDER daily digest
By John Liang
January 20, 2016 at 2:44 PM

We kick off this Wednesday INSIDER Daily Digest with news on a slew of upcoming Army Science Board studies and more.

The Army Science Board has been commissioned to conduct a bunch of new studies:

Eyeing China, Russia, Army commissions independent blueprint for future technological overmatch

The Army -- seeking bold, transformational ideas to give its future force a disruptive advantage against potential adversaries -- has commissioned an influential advisory panel with six new studies to recommend new weapon systems and operational concepts, an undertaking that appears to advance a new Pentagon program to re-energize conventional deterrence against China and Russia.

Related documents:

ASB terms of reference for 'disruptive innovative concepts' study

ASB terms of reference for 'Internet of things' study

ASB terms of reference for indirect fires study

ASB terms of reference for future armor competition study

ASB terms of reference for robotic systems-of-systems architecture study

ASB terms of reference for soldier, team performance study

Keep an eye out for an Air Force unmanned systems pilot plan for enlisted airmen:

Air Force to complete enlisted RPA pilot implementation plan this summer

The Air Force expects to finalize its plan to allow enlisted airmen to fly remotely piloted aircraft by this summer, according to the service's deputy chief of staff for operations.

(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.)

A missile defense flight test will be taking place soon:

Missile Defense Agency plans new non-intercept flight test in January

The Missile Defense Agency will hold a Ground-based Midcourse Defense program test later this month, according to its director.

General Dynamics has received Army funding to start up-gunning some of its Stryker vehicles:

General Dynamics gets nod to begin work on up-gunned Strykers

The Army has given General Dynamics $31 million to integrate 30 mm cannons on a select number of Stryker vehicles, according to a Pentagon statement.

Littoral Combat Ships deployed to the Pacific could be getting some new missiles soon:

Navy plans to deploy at least two different over-the-horizon missiles

The Navy is planning to deploy at least two different types of over-the-horizon missiles on Littoral Combat Ships being sent to the Western Pacific this year, although the service has yet to lock down funding for the effort.

DOD renews effort to train 'thousands' who deal with services contracts
By John Liang
January 20, 2016 at 1:49 PM

The Defense Department is renewing its efforts to train the "tens of thousands" of employees who deal with services contracts but are not fully trained to do so, according to Ken Brennan, deputy director of services acquisition.

The Pentagon has been standing up Service Requirement Review Boards for the past several years at the military service level and is in the process of establishing SRRBs for "fourth estate" entities managed by the Office of the Secretary of Defense, Inside Defense reported Jan. 19.

Brennan told Inside Defense last week that DOD is making an effort to institute "cultural change," so that SRRB members do not see "tripwires" as a reason to penalize a services contract or limit its spending. He noted that DOD has not set any "values" for specific tripwires and left much of the process to the discretion of military acquisition deputies.

"It is not -- and this is a focus area because we've seen this culturally -- it is not to be a brick wall. It is not to be a ceiling," he said.

Novetta names former Raytheon executive head of federal division
By Marjorie Censer
January 20, 2016 at 1:14 PM

Government contractor Novetta said today that Tiffanny Gates has joined the company as president of its federal division, leading its work with the U.S. government.

Gates previously worked at Raytheon's Blackbird Technologies, where she was vice president of cyber strategies. She has also worked as president of strategy and business development in ManTech International's mission, cyber and technology solutions group.

Additionally, Gates was president and chief executive of the Emerging Technologies Group before it was acquired by ManTech.

The INSIDER daily digest
By John Liang
January 19, 2016 at 2:57 PM

We kick off this post-holiday INSIDER Daily Digest with news on DOD's acquisition of services, the FYDP and more.

Keep an eye out for an upcoming GAO report on services acquisition:

Pentagon tries to better manage $145B in services contracts as GAO preps report

The Defense Department is focusing on how to better manage the $145 billion it spent on the acquisition of services in fiscal year 2015, while the Government Accountability Office is in the final stages of crafting a report on the matter, according to a top Pentagon official.

An early look at the challenges facing DOD in its upcoming five-year spending plan:

CBO: FY-17 FYDP carries $13B modernization spike, $41B sequester threat in FY-21

The U.S. military's spending needs in its forthcoming five-year plan -- fiscal years 2017 to 2021 -- present Pentagon leaders, congressional policy makers, and the next administration a double conundrum: how to finance the leading edge of a modernization "bow wave" requiring a sharp, $13 billion increase in FY-21, a year where DOD also faces a potential $41 billion sequester cut.

Document: CBO report on the long-term implications of the 2016 FYDP

Expect to see an audit of a now-defunct DOD task force in Afghanistan:

Grassley seeks 'top-to-bottom audit' of former DOD task force

The chairman of the Senate Judiciary Committee is seeking "congressional and administration oversight and scrutiny" of a former Pentagon task force in Afghanistan, which is the subject of an upcoming congressional hearing.

Document: Sen. Grassley's letter on SIGAR TFBSO audit

The Army is thinking about a pilot program for armored ground vehicles with commercially available parts:

Renewed interest brewing in piloting field-grade vehicle protection systems

Defense Department officials are considering kicking off a pilot program to equip some armored ground vehicles with already developed active protection systems, as an Army program toward that end is still in the nascent stages, according to sources on Capitol Hill and within industry.

The RFP for the Army's Chinook upgrade effort has been approved:

Army moves ahead in Chinook upgrade effort; RFP approved

The Army's top acquisition official has approved the release of the solicitation document for the CH-47F Chinook helicopter's Block II upgrade program, according to the official heading the program.

A JTRS vehicular radio milestone decision has been made:

Army bumps milestone for JTRS radio, network assessment needed

The Army has postponed a milestone decision for the Joint Tactical Radio System's vehicular radio until after an assessment of the total mid-tier network this spring, according to a service official.

The week ahead
By Tony Bertuca
January 19, 2016 at 11:49 AM

Highlights from the week ahead include an appearance by Vice Chairman of the Joint Chiefs Gen. Paul Selva and a Senate Armed Services Committee hearing on a controversial Defense Department task force and its operations in Afghanistan.

Tuesday

Vice Adm. James Syring, director of the Missile Defense Agency, will speak at the Center for Strategic and International Studies.

Link: bit.ly/1K0hQHU

James Geurts, the acquisition executive for U.S. Special Operations Command, is scheduled to speak at the Atlantic Council.

Link: bit.ly/1ZKjdad

Wednesday

Defense Secretary Ash Carter travels to Paris to meet with foreign defense ministers on countering the Islamic State of Iraq and the Levant.

The Senate Armed Services readiness subcommittee holds a hearing on the Task Force for Business and Stability Operations-Afghanistan.

Link: 1.usa.gov/23cp0od

Army Chief of Staff Gen. Mark Milley speaks at an Association of United States Army event in Arlington, VA.

Link: bit.ly/1NiBO0C

Thursday

Vice Chairman of the Joint Chiefs Gen. Paul Selva speaks at the Brookings Institute on the future of warfighting technology.

Link: http://brook.gs/1ZKfdXk

Adm. Mike Rogers, chief of U.S. Cyber Command and the National Security Agency, speaks at the Atlantic Council:

Link: http://bit.ly/235iqzQ

The Senate Armed Services Committee meets to consider the nomination of Eric Fanning for Army secretary.

Link: 1.usa.gov/1RRiH65

The Defense Business Board is scheduled to meet.

Link: 1.usa.gov/1PobJPb

Friday:

U.S. Strategic Command chief Adm. Cecil Haney speaks at the Center for Strategic and International Studies.

Link: http://bit.ly/22ewI0O

Inside the Army highlights
By John Liang
January 19, 2016 at 10:40 AM

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

Defense Department officials are considering kicking off a pilot program to equip some armored ground vehicles with already developed active protection systems, as an Army program toward that end is still in the nascent stages, according to sources on Capitol Hill and within industry.

Full story: Renewed interest brewing in piloting field-grade vehicle protection systems

2. The Army's top acquisition official has approved the release of the solicitation document for the CH-47F Chinook helicopter's Block II upgrade program, according to the official heading the program.

Full story: Army moves ahead in Chinook upgrade effort; RFP approved

3. The Army has postponed a milestone decision for the Joint Tactical Radio System's vehicular radio until after an assessment of the total mid-tier network this spring, according to a service official.

Full story: Army bumps milestone for JTRS radio, network assessment needed

Inside the Navy highlights
By Lee Hudson
January 19, 2016 at 10:35 AM

Some must-reads from this week's issue of Inside the Navy:

1. The Navy is planning to deploy at least two different types of over-the-horizon missiles on Littoral Combat Ships being sent to the Western Pacific this year, although the service has yet to lock down funding for the effort.

Full story: Navy plans to deploy at least two different over-the-horizon missiles

2. The Navy will reveal in its fiscal year 2017 budget request that it is reversing the decision to extend the service life of the entire cruiser fleet, according to multiple sources privy to the budget process.

Full story: Navy will reverse cruiser modernization in FY-17 budget proposal

3. Textron has initiated construction on the first two of the Navy's new Ship-To-Shore Connector craft, as the company prepares to ramp up production and maintain its status as the prime contractor on the program in the coming years.

Full story: Textron gearing up for increased Ship-To-Shore Connector production

F135 handshake deal
By Courtney Albon
January 15, 2016 at 5:03 PM

The Defense Department has reached an informal agreement with Pratt & Whitney for F135 engine low-rate initial production lots 9 and 10, the F-35 joint program office announced Friday.

Unit prices for F-35A- and C-variant engines dropped 3.4 percent from the LRIP 8 to LRIP 9 and 10. The unit cost of the F-35B fell 6.4 percent over that same time period, according to a Jan. 15 JPO press release. The ninth and tenth lots include a total of 167 engines.

Lt. Gen. Christopher Bogdan, the Joint Strike Fighter program executive officer, said in the release that the reduction in price is linked to the increased F-35 production pace.

"This agreement for the next two lots of F135 engines continues to drive down costs, and that's critical to making the F-35 more affordable for the U.S. military and our allies," Bogdan said. "We are ramping up production and witnessing tangible results."

The total contract award value will be released when the terms are finalized, and will include engine deliveries as well as engineering support, spare parts and modules and program management.