The Insider

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

The Missile Defense Agency announced late Friday that it would no longer consider an installation in Maine as a possible Ground-based Midcourse Defense site.

MDA "has designated the Center for Security Forces Detachment Kittery Survival, Evasion, Resistance and Escape Facility (SERE East), Redington Township, Maine as an Alternative Considered, but Not Carried Forward for a potential additional missile interceptor site," according to a Jan. 15 agency statement.

MDA said it made this decision "following extensive surveys conducted for development of a Draft Environmental Impact Statement (DEIS) to evaluate candidate sites for a potential future deployment of additional ground-based interceptors for homeland defense, as required by the fiscal year 2013 National Defense Authorization Act." Specifically:

The MDA surveys, conducted in coordination with Federal and state agencies, included infrastructure, water resources, transportation access and other areas for assessing the suitability of a potential site.

The SERE site presented irreversible environmental impacts, significant constructability concerns, and extensive costs associated with developing infrastructure in a remote area. Due to these factors, and in accordance with the National Environmental Policy Act process, the SERE East site will not be carried forward for further consideration.

Previously announced sites in New York, Ohio and Michigan will continue to be considered, and will be covered in the DEIS now in progress.

The Department of Defense has not made a decision to deploy or construct an additional interceptor site. Current sites in Alaska and California provide the necessary protection of the homeland from ballistic missile attack by countries such as North Korea and Iran. If a decision were to be made in the future to construct a new site, completing the required site studies and Environmental Impact Statement would shorten the timeline required to build such a site.

We kick off this Friday INSIDER Daily Digest with news on the B-2 bomber and more.

Keep an eye out for an Air Force-Northrop Grumman B-2 agreement coming out soon:

Air Force, Northrop Grumman expect handshake agreement next week on key B-2 upgrade

Palmdale, CA -- The Air Force and Northrop Grumman confirmed this week they are reaching the end of negotiations for a key B-2 defensive management system upgrade and will likely reach a handshake agreement next week.

Industry analysts like a new instruction on DOD services acquisition:

Industry analysts say services instruction could prove helpful

A new instruction on Defense Department services acquisition represents a positive step, several industry analysts tell Inside Defense.

OSD will soon be reviewing a cost estimate on the Navy's future frigate:

Navy sends frigate cost estimate to OSD

The Navy has provided the Office of the Secretary of Defense with a cost estimate on the future frigate being planned for procurement starting in fiscal year 2019, according to a program official.

More SNA conference coverage:

Navy will reverse cruiser modernization decision in FY-17 budget proposal

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.

The Air Force will retain one more nuclear bomber:

Air Force tweaks B-52H force structure plan under New START Treaty

The Air Force has tweaked its heavy bomber force structure plan under the New START Treaty, ratcheting up the number of nuclear-capable B-52H bombers it plans to retain from 41 to 42 while also paring back by one the number of non-operational B-52s the service will convert to a conventional-only role.

Don't expect an experimental Air Force satellite to be launched anytime soon:

'Technical challenges' will delay experimental imaging satellite two years

The Air Force will delay the launch of a wide-field-of-view testbed by two years due to "technical challenges," according to the commander of the Space and Missile Systems Center.

The Air Force wants more trainers for its ICBM force:

Air Force intercontinental ballistic missile force seeks updated trainers

The Air Force is requesting a sixth Missile Procedures Trainer for its intercontinental ballistic missile system to assist its training forces at Vandenberg Air Force Base, CA, according to program managers for ICBM trainer sustainment and acquisition.

The Air Force will hold an industry day on armaments in April:

Air Force armament industry day will return with long-term road map

The Air Force Life Cycle Management Center will host its fourth annual armament industry day this April with a focus on the service's long-term planning activity.

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

1. The Air Force Life-Cycle Management Center is crafting a long-term armament road map, and will preview its plans in an industry day this spring.

Full story: Air Force armament industry day will return with long-term road map

2. The Air Force will solicit bids this spring for a key F-16 radar upgrade and is crafting a plan to expand the work across the Falcon fleet.

Full story: Air Force to solicit bids for F-16 AESA radar upgrade this spring

3. The Air Force is planning to modify 42 B-52H bombers to a conventional-only role as part of the New START Treaty – a slight change of direction, according to the service's chief of staff for strategic plans and requirements.

Full story: Air Force tweaks B-52H force structure plan under New START Treaty

Kicking off this Thursday INSIDER Daily Digest with a scoop on the Army's Apache attack helicopters and more.

The Army has found a quality-control problem with its Apache helicopters:

Army looks into eight-year quality-control gap in Apache helos

The Army is investigating a quality-control problem at the Apache production line that sources say goes back eight years, as the service hopes to sign a new contract with manufacturer Boeing this summer.

Some future budget concerns from the chairman of the House Armed Services Committee:

Thornberry worries Obama will raid FY-17 base budget to pay OCO costs

House Armed Services Committee Chairman Mac Thornberry (R-TX) is concerned that the Obama administration will use base budget defense funds to pay for operational expenses in fiscal year 2017, rather than request more overseas contingency operations spending.

Our continuing coverage of the SNA convention:

Mabus: 'Very Proud' of Great Green Fleet demo in 2016

Navy Secretary Ray Mabus, in his final year as service secretary, is "very proud" the Great Green Fleet will be demonstrated in 2016.

Document: Mabus speech at SNA conference

The Special Inspector General for Afghanistan Reconstruction issued a report early this morning:

SIGAR: Pentagon task force spent $215M on projects with 'mixed results'

The Pentagon's defunct Task Force for Business and Stability Operations spent $215 million on projects designed to advance extractive industries in Afghanistan, but few of these yielded appreciable results, according to a new report from the Special Inspector General for Afghanistan Reconstruction.

Document: SIGAR report on Afghanistan's oil, gas and minerals industries

The Pentagon's inspector general will be undergoing more scrutiny:

DOD IG under scrutiny for role in response to SIGAR report

Senate Judiciary Committee Chairman Chuck Grassley (R-IA) is raising new questions about the independence of the Defense Department inspector general amid evidence of its involvement in editing the Pentagon's response to an oversight authority.

Keep an eye out for an updated DISA milCloud acquisition strategy:

DISA is eyeing next generations of milCloud, enterprise email

The Defense Information Systems Agency is working on updating the acquisition strategy and requirements for the next generations of milCloud and enterprise email, according to an agency official.

Don't expect DOD to increase its use of renewable energy anytime soon:

GAO: DOD has not established integrated net zero strategy or policy

The Pentagon has not established an integrated strategy or policy to help increase renewable energy usage on its installations, the Government Accountability Office found in a recent report.

Document: GAO report on DOD's net zero goals

A proposers' day will be held later this month on undersea communication technology for unmanned vehicles:

DARPA eyes undersea communication technology for unmanned vehicles

The Pentagon's advanced research arm seeks to hold an industry event later this month to inform potential proposers about a project designed to help develop undersea communications technology for unmanned undersea vehicles.

Document: DARPA proposers' day notice for MOCCA

Colt Defense said late Wednesday it has completed its financial restructuring and emerged from Chapter 11 bankruptcy protection.

"Under the Plan, Colt has significantly restructured and reduced its debt, improved its capital structure, and enhanced its liquidity profile," the company said. "Specifically, the Company has reduced its debt by approximately $200 million, after giving effect to $50 million of new capital raised through the restructuring process."

Colt added that it has executed a long-term lease for its West Hartford, CT, facility and entered into an agreement with the United Auto Workers Union.

The company first filed for bankruptcy protection in June.

The Congressional Research Service recently issued a report that looks at the Navy's future shipbuilding plans.

According to the Jan. 8 report (first obtained by Secrecy News), among the potential issues for lawmakers regarding the Navy's fiscal year 2016 shipbuilding budget as well as the five- and 30-year shipbuilding plans are:

* the potential impact on the size and capability of the Navy of limiting Department of Defense (DOD) spending through FY2021 to the levels set forth in the Budget Control Act (BCA) of 2011, as amended;

* the affordability of the 30-year shipbuilding plan; and

* the appropriate future size and structure of the Navy in light of budgetary and strategic considerations.

Some other recent CRS reports of note:

* The Navy's John Lewis-class oiler shipbuilding program

* The federal cybersecurity workforce