The Insider

By Courtney Albon
January 8, 2016 at 4:18 PM

The Air Force has issued a request for proposals for the first of a two-phased effort to explore competition for future Global Positioning System satellite production.

The service indicated last month that the GPS III solicitation would come early this year. The Jan. 8 Federal Business Opportunities notice states that proposals are due no later than Feb. 23, and contracts will have a period of performance of up to 38 months.

Lockheed Martin is the current GPS III prime contractor and is in line to build the first 10 satellites in the next-generation constellation. For future satellites, though, the service plans to pursue competition, which will be split into two phases -- a feasibility assessment phase and a formal production competition.

Officials have said the goal of Phase One is to bring competitors to the appropriate critical design level without introducing any new elements that would impede their work. Phase Two will launch a production competition to build up to 22 GPS III satellites. A Phase Two RFP will likely be released in fiscal year 2017.

By John Liang
January 8, 2016 at 2:40 PM

We kick off this Friday INSIDER Daily Digest with coverage from this week's House Armed Services Committee hearing on defense acquisition reform.

Keep an eye out for a new Navy fast-track acquisition shop modeled on a similar Air Force office:

Navy to establish new fast-track acquisition shop based on Air Force RCO

The Navy is planning to establish a new shop to oversee rapid acquisition of high-payoff projects with promise to advance military superiority, particularly those focused on classified fleet needs -- a move that would emulate the Air Force's Rapid Capabilities Office in order to sharpen focus on technological innovation and expedited fielding.

The Navy will seek more R&D flexibility:

Eyeing China, Russia, Navy wants new discretion to experiment with $5B prototype portfolio

The Navy's fiscal year 2017 budget request will seek new flexibility to allocate resources across a $5 billion portfolio of research and development projects in order to bolster new technology prototyping and experimentation in support of the Pentagon's new program to reinvigorate conventional deterrence against China and Russia.

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

The Air Force's acting acquisition executive spoke this week on the Defense Meteorological Satellite Program:

Lombardi calls DMSP-20 failure to launch an 'unfortunate example'

The Air Force's acting acquisition executive said this week that the service's execution of the Defense Meteorological Satellite Program is "an unfortunate example" of its ability to manage space programs, after taking heat from House lawmakers for alleged mismanagement of the program.

Look for the Air Force to put FY-17 money into its high-altitude, unmanned platform transition plan, among other efforts:

Gen. Otto offers vision for fiscal year 2017 Air Force ISR budget

The Air Force is eyeing fiscal year 2017 investments in its high-altitude, unmanned platform transition plan, autonomous vehicle research and development, as well as analysis and targeting, according to the service's deputy chief of staff for intelligence, surveillance and reconnaissance.

The company that makes the AR1 rocket engine is confident it will be ready to fly in 2019:

Aerojet Rocketdyne still on track to deliver 'ready-to-fly' rocket engine by 2019

Aerojet Rocketdyne executives remain confident the company's AR1 rocket engine -- its proposed RD-180 replacement -- can be ready to fly in 2019, despite a continued push from within the Pentagon for Congress to ease up on the restrictions it has placed on the use of the Russian-made engine.

Don't expect the Air Force to switch to a new Reaper and Predator maintenance contract anytime soon:

Air Force locked into sole-source contract for MQ-9 and MQ-1 maintenance

The Air Force will be locked into a sole-source sustainment contract for its MQ-9 fleet until the service is capable of completing organic depot maintenance, according to a Dec. 30 Federal Business Opportunities notice.

By Marjorie Censer
January 8, 2016 at 1:32 PM

Cubic executives said today the company's recent acquisitions of TeraLogics and GATR Technologies bring it into areas with greater growth rates and better profit margins.

During a call with analysts Friday, Bradley Feldmann, Cubic's chief executive, said the deals significantly expand Cubic's footprint in the defense C4ISR market. The company said it now has a C4ISR business with more than $200 million in annual sales.

Cubic announced last month it would pay about $233 million for GATR, which makes deployable satellite communication terminals, and $39 million for TeraLogics, which focuses on full-motion video analysis and delivery software.

Jay Thomas, Cubic's chief financial officer, said Friday he expects the GATR acquisition to close later this month. The TeraLogics deal is already complete.

By Marjorie Censer
January 8, 2016 at 1:05 PM

Government services contractor XLA today said it has named Gary Slack, a former QinetiQ North America and BAE Systems executive, president and chief executive.

He succeeds Lloyd Mustin, XLA's founder. Mustin will become chairman of the company's board.

Slack was president and chief operating officer of QinetiQ North America and, before that, spent 13 years at BAE Systems's U.S. business. He served as president of BAE's U.S. combat systems business as well as chief financial officer.

Slack has also worked at TRW, BDM International and Honeywell.

By Courtney Albon
January 8, 2016 at 12:36 PM

Air Combat Command will host an industry day next month designed to brief companies on acquisition, program and contract management.

The Feb. 11 event, led by ACC's acquisition management integration center, will feature a keynote address by the center's director, Randall McFadden, according to a Jan. 7 Federal Business Opportunities notice.

AMIC, also referred to as ACC's program plans division, is tasked with managing the development of new contracts and the source-selection process.

By Courtney Albon
January 8, 2016 at 11:28 AM

Some must-reads from the first 2016 issue of Inside the Air Force:

1. Lt. Gen. Robert Otto offered some insight on fiscal year 2017 investments in intelligence, surveillance and Reconnaissance platforms in an interview with ITAF this week.

Full story: Lt. Gen. Otto offers vision for fiscal year 2017 Air Force ISR budget

2. Aerojet Rocketdyne told ITAF this week that it is still on pace certify and integrate its AR1 rocket engine by 2019.

Full story: Aerojet Rocketdyne still on track to deliver 'ready-to-fly' engine by 2019

3. House lawmakers blasted the Air Force this week for its alleged mismanagement of the Defense Meteorological Satellite Program, which left the last of the legacy weather satellites permanently grounded.

Full story: Lombardi calls DMSP-20 failure to launch an 'unfortunate example'

By Tony Bertuca
January 7, 2016 at 5:20 PM

The White House Office of Management and Budget has scheduled the formal rollout of the fiscal year 2017 federal budget request for Feb. 9.

Emily Cain, a spokeswoman for OMB, confirmed the date for Inside Defense after OMB Director Shaun Donovan announced the information on his personal Twitter account.

By Marjorie Censer
January 7, 2016 at 4:46 PM

Northrop Grumman said today its board has named Lisa Davis corporate vice president of communications, effective Feb. 29.

Davis will succeed Darryl Fraser, who will retire on April 1, according to the contractor.

She joined Northrop in 2014 and currently is vice president of communications in the company's mission systems sector. She previously was vice president of corporate affairs at MedImmune and has also worked at the American Association of Retired Persons and the Democratic Leadership Council.

By Courtney Albon
January 7, 2016 at 3:22 PM

The Air Force has announced a plan to reduce 1,000 civilian positions as part of an effort to save money and "rebalance" its civilian workforce.

The service conducted a needs assessment in early August, identifying more than 1,000 workforce "overages" across 48 installations, according to a Jan. 7 press release. Individual installations will have the opportunity to utilize reduction-in-force authority, which means they could move some of the affected employees into new positions. However, replacement is not guaranteed.

"The remaining employees will be offered registration in the DOD Priority Placement Program and receive consideration for future vacancies according to their registration," the release continues.

In a separate Jan. 7 press release, the American Federation of Government Employees called the Air Force's plan "an ill-conceived action."

"The Air Force says it's laying off employees to meet congressionally required cuts in the size of the civilian workforce," the release states. "However, it appears that none of the work currently performed by these employees is going away."

By John Liang
January 7, 2016 at 2:00 PM

We kick off this Thursday INSIDER Daily Digest with news on Better Buying Power and more.

Keep an eye out for an informal GAO report on Better Buying Power:

Capitol Hill asks GAO to examine Kendall's Better Buying Power assertions

The Government Accountability Office has been asked by congressional defense committee staffers to "informally" evaluate data-based assertions made by Frank Kendall, the Pentagon's acquisition chief, that the Defense Department's Better Buying Power initiative has controlled weapon system contract costs.

(For more Better Buying Power news, check out our Notification Center, where you can sign up to receive email alerts whenever a related story is posted.)

The Joint Chiefs chairman will soon be completing a review of DOD's unified command plan:

Dunford examining DOD's command-and-control structure

The chairman of the Joint Chiefs of Staff is evaluating the Defense Department's unified command plan as part of an overall review of U.S. command-and-control posture.

The DOD IG wants the Pentagon's CIO shop to establish a standard, department-wide cloud computing definition:

DOD IG: Pentagon cannot measure effectiveness of cloud computing efforts

The Pentagon's lack of an effective process to identify cloud computing service contracts makes it challenging to determine whether these efforts are saving money, the Defense Department inspector general found in a new report.

Document: DOD IG report on cloud computing

U.S. Special Operations Command wants industry to submit white papers by next month on a soft-body armor technology:

SOCOM eyes soft-body armor technology that can withstand projectiles

U.S. Special Operations Command is seeking industry input for a soft-body armor technology that can withstand different projectiles as part of an effort to "accelerate the delivery of innovative capabilities" to the warfighter, according to a recent notice.

Document: BAA for SOCOM soft armor

DOD will begin sending status reports to lawmakers on its workforce efficiency efforts:

GAO: DOD failed to provide details to Congress on workforce efficiency efforts

The Pentagon has failed to provide the necessary information to Congress to determine if the department is achieving civilian and contractor workforce efficiencies, the Government Accountability Office found in a new report.

Document: GAO report on civilian, contractor workforces

Iraq could soon begin receiving millions of dollars' worth of Hellfire missiles:

Proposed $800M missile sale to Iraq approved

The State Department has approved a potential foreign military sale of $800 million for missiles and related equipment and services to the Iraqi government to aid in the battle against the Islamic State of Iraq and the Levant, according to the Defense Security Cooperation Agency.

Document: DSCA statement on proposed Hellfire missile sale to Iraq

By Tony Bertuca
January 7, 2016 at 11:09 AM

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

1. The Government Accountability Office has been asked by congressional defense committee staffers to "informally" evaluate data-based assertions made by Frank Kendall, the Pentagon's acquisition chief, that the Defense Department's Better Buying Power initiative has controlled weapon system contract costs.

Full story: Capitol Hill asks GAO to examine Kendall's Better Buying Power assertions

2. The Pentagon's lack of an effective process to identify cloud computing service contracts makes it challenging to determine whether these efforts are saving money, the Defense Department inspector general found in a new report.

Full story: DOD IG: Pentagon cannot measure effectiveness of cloud computing efforts

3. The omnibus spending bill signed by the president last month requires federal agencies to put in place an enhanced program that will consider publicly available electronic information and social media when examining security-cleared workers.

Full story: Omnibus bill expands security clearance review scope

By Marjorie Censer
January 6, 2016 at 3:29 PM

Oshkosh Corp. said today that John Urias, president of Oshkosh Defense, will retire Feb. 6 to "attend to matters regarding the health of his family."

Urias, a retired Army major general, has led the unit since 2011. Wilson Jones, chief executive of Oshkosh, will oversee the defense segment until a replacement is named, the company said.

During his Army career, Urias was commanding general of Joint Contracting Command and program executive officer for the Army's Air, Space and Missile Defense programs. Before joining Oshkosh, he was vice president of programs for Raytheon Integrated Defense Systems.

By John Liang
January 6, 2016 at 2:27 PM

This Wednesday INSIDER Daily Digest features news on the FY-17 budget and more.

Keep an eye out for a SECDEF preview of the FY-17 budget soon:

Carter expected to preview FY-17 budget in 'coming days'

Defense Secretary Ash Carter is expected to preview the Pentagon's fiscal year 2017 budget request "in the coming days," though the target date for submission to Congress remains Feb. 1, according to officials and sources.

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

Federal agencies will need to start checking employees' social media accounts when doing security clearance reviews:

Omnibus bill expands security clearance review scope

The omnibus spending bill signed by the president last month requires federal agencies to put in place an enhanced program that will consider publicly available electronic information and social media when examining security-cleared workers.

An RFI for the second of several NGEN re-compete efforts is out:

Navy releases second RFI on Next-Generation Enterprise Network re-compete

The Navy recently released its second request for information on the upcoming re-compete for Next-Generation Enterprise Network services, this time focusing on the market for end-user hardware.

The rollout of the JTRS airborne radio should be coming out soon, following a delay:

Army delays draft request for proposals for airborne radio

The Army has pushed back the release of the draft solicitation for the Joint Tactical Radio System's airborne radio, delaying the rollout until after the start of the new year, according to a Federal Business Opportunities notice.

A primer on the Marine Corps' plans to overhaul the service's CH-53E Super Stallion helos:

Marines preparing to ramp up CH-53E Super Stallion reset effort

The Marine Corps plans to accelerate the reset of its heavy-lift helicopters over the next year, with the service planning to overhaul a total of 17 helicopters during fiscal year 2016.

The Army's AMPV program will undergo a DOD inspector general review:

DOD inspector general to audit Armored Multi-Purpose Vehicle acquisition

The Defense Department inspector general's office plans to conduct an audit of the acquisition process for the Army's Armored Multi-Purpose Vehicle Program, according to the office's fiscal year 2016 oversight plan.

By John Liang
January 6, 2016 at 11:31 AM

North Korea's alleged nuclear weapons test this week has sparked a call from a leading House Republican for deploying more missile defense systems to the Korean peninsula.

House Armed Services Committee Chairman Mac Thornberry (R-TX) said in a statement that "it may take some time to know exactly what was detonated in North Korea. But what is clear is that the world is rapidly growing more dangerous, and the United States cannot afford to focus only on ISIS or Iran or Russia. We must be prepared to protect our national security against many threats. Unfortunately, the view around the world is that U.S. leadership is in decline while the administration's inaction only fuels those concerns." He continued:

"The U.S. must work with our South Korean allies to deploy missile defense systems, including THAAD, on the peninsula and work at home to strengthen our homeland missile defenses.  We must also take immediate steps to strengthen our own nuclear deterrent, which is the foundation for our other defense capabilities."

House Foreign Affairs Committee Chairman Ed Royce (R-CA) said:

"Dictators like Kim Jong Un don't take time outs, they take advantage when the U.S. looks away. As Iran prepares to gain billions in sanctions relief, North Korea surely thinks it can intimidate the Obama administration into the same.

"The answer to North Korea's threats is more pressure, not less. This rogue regime has no interest in being a responsible state. It continues to starve its people while it works to advance nuclear, missile and cyber weapons that pose a direct threat to the U.S. and our allies. The administration's North Korea policy has proven a dramatic failure, and we urgently need a new approach."

International Atomic Energy Agency Director General Yukiya Amano released a statement on YouTube:

"The DPRK's nuclear test, if confirmed, is in clear violation of UN Security Council resolutions and is deeply regrettable. I strongly urge the DPRK to implement fully all relevant resolutions of the UN Security Council and the IAEA. The IAEA remains ready to contribute to the peaceful resolution of the DPRK nuclear issue by resuming its nuclear verification activities in the DPRK once a political agreement is reached among countries concerned."

By Marjorie Censer
January 6, 2016 at 10:10 AM

Pratt & Whitney Canada, a subsidiary of United Technologies, said today it will pay about $965 million in total to Canadian federal and provincial government agencies to "settle and terminate" the company's contractual obligations.

In a filing with the Securities and Exchange Commission, the company said Pratt & Whitney Canada late last month entered into "a series of amendments to certain research and development support arrangements previously entered into with Canadian federal and provincial government agencies."

As a result, the business unit recorded a pre-tax charge of about $870 million in the fourth quarter of 2015. The amendments require Pratt & Whitney Canada to make four annual payments, beginning this month, "to fully settle and terminate PWC's contractual obligations to pay royalties to these agencies contingent upon future engine deliveries and company sales."

The payments, the company added, will total about $965 million in total.

"PWC has also agreed to maintain its commitments to perform certain assembly, test and manufacturing operations in Canada and Quebec; and to spend approximately USD $8 million per year in support of innovation and research and development through initiatives with post-secondary institutions and key industry associations in Canada and Quebec over a fourteen year period," the company added in its SEC filing.