The Insider

By Tony Bertuca
December 4, 2015 at 12:19 PM

Former Defense Department official Thomas Mahnken has been tapped to become the new president and CEO of the Center for Strategic and Budgetary Assessments.

Mahnken, who served as deputy assistant secretary of defense for policy planning from 2006 to 2009, will succeed Andrew Krepinevich, CSBA's founder and president since its inception 22 years ago.

"I am honored to be joining CSBA," Mahnken in a CSBA statement. "It is an organization that is at the forefront of thinking through the tough strategic challenges that the United States faces today, and will face in the future. Its work is a tribute to the highly talented group of analysts who make up CSBA."

CSBA recently issued a report finding that the United States' advantage in the electromagnetic warfare domain is eroding, but the Pentagon can regain its edge by shifting its priorities and developing new operational concepts. As Inside Defense reported this week:

The report notes that the Defense Department can "regain and maintain an enduring advantage in the [electromagnetic spectrum] warfare competition" that it lost since the Cold War ended if it shifts toward using low-power countermeasures to retake the airwaves.

"Specifically, DOD could shift toward using low-power countermeasures to defeat enemy passive and active sensors, as well as low probability of intercept/low-probability of detection (LPI/LPD) sensors and communications to reduce the likelihood that its forces will be counter-detected," the report states.

Many of these technologies are already mature, the report states, noting that they can be added to weapon systems. However, DOD needs "the operational concepts and formal requirements that would help transition these capabilities to U.S. warfighters, organizations to develop and acquire more versatile EMS warfare systems, and sufficient resources allocated to procure them," the report states.

CSBA recommends that the department lay out a vision for how troops will operate in the EMS, calling on the newly established EW executive committee to do so. In addition, the military departments should create EMS warfare operational concepts.

By Marjorie Censer
December 3, 2015 at 2:28 PM

The Justice Department announced today it received more than $3.5 billion in fiscal year 2015 from settlements and judgments related to cases involving fraud and false claims against the government.

Cases related to government contracts comprised $1.1 billion of that total.

The Justice Department specifically pointed to several large cases, including settlements with a Lockheed Martin subsidiary for $27.5 million and DRS Technical Services for $13.7 million to "resolve allegations that their employees lacked required job qualifications while the companies charged for the higher level, qualified employees required under contracts with U.S. Army Communication and Electronics Command."

Link:  http://www.justice.gov/opa/pr/justice-department-recovers-over-35-billion-false-claims-act-cases-fiscal-year-2015

By John Liang
December 3, 2015 at 1:42 PM

We start off this Thursday INSIDER Daily Digest with news on Better Buying Power:

Kendall pushes 'new data' to fend off Better Buying Power critics

In a rebuke to his critics in Congress, Frank Kendall, the Pentagon's acquisition chief, said Wednesday that he does not plan to author a fourth installment of Better Buying Power -- the Defense Department's key acquisition improvement initiative -- because current trends indicate that the first three BBP initiatives have been successfully controlling weapon system contract costs.

Document: Kendall briefing slide on benefits of Better Buying Power

News from the Special Inspector General for Afghanistan Reconstruction that was posted very early this morning:

SIGAR: Private 'villas' and security for task force cost taxpayers $150M

The Special Inspector General for Afghanistan Reconstruction is probing $150 million in spending on housing and security by the Task Force for Business and Stability Operations -- the latest in a series of inquiries into the shuttered Pentagon entity.

Coverage of a new government contractor:

Following split, CSRA vows to maintain commercial 'playbook'

Split from Computer Sciences Corp. and designed to focus on U.S. government work, CSRA will still retain a focus on commercial practices, the contractor's chief executive told Inside Defense this week.

DOD recently sent a report on the acquisition workforce development fund to Congress:

Acquisition fund helped add 859 personnel in FY-14, pay for training

The Pentagon's acquisition workforce development fund has helped increase the number of certified acquisition professionals and their training in line with the Defense Department's Better Buying Power objectives to improve the professionalism of the workforce, according to a recent report DOD acquisition chief Frank Kendall sent to lawmakers.

News on the recently awarded ACV contract:

Marine Corps conducted two next-gen amphib vehicle contract award debriefs

The Marine Corps has conducted two debriefs regarding the next-generation amphibious vehicle contract award and four out of the five competing vendors confirmed to Inside Defense they requested face-to-face meetings with the government.

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

DARPA is working on an effort designed to help find and respond to cyberattacks on critical U.S. infrastructure:

DARPA seeks ways to detect, respond to cyberattacks on infrastructure

The Pentagon's advanced research arm aims to hold a proposers' day this month to provide information on a new program designed to help find and respond to cyberattacks on critical U.S. infrastructure, according to a new notice.

Document: DARPA's RADICS proposers day notice

The Center for Strategic and Budgetary Assessments has issued a new report:

CSBA: To regain EMS advantage, DOD should develop new CONOPs

The United States' advantage in the electromagnetic warfare domain is eroding, but the Pentagon can regain its edge by shifting its priorities and developing new operational concepts, the Center for Strategic and Budgetary Assessments states in a report released Wednesday.

By Tony Bertuca
December 3, 2015 at 1:40 PM

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

1. Lockheed Martin has postponed a planned decision on its government IT infrastructure services and technical services businesses from the end of this year to the first quarter of next year, according to the contractor's chief financial officer.

Story: Lockheed delays decision on services divestiture to next year

2. The U.S. military budget has suffered close to the “worst-case” outcome since enactment of the 2011 Budget Control Act, according to the Pentagon comptroller, who said the fiscal year 2017 budget will press for about $100 billion more than allowed by law through FY-21 -- a gambit to limit total reductions to DOD planned spending to $800 billion.

Story: DOD weathers nearly 'worst-case' BCA budget outcome

3. The United States' advantage in the electromagnetic warfare domain is eroding, but the Pentagon can regain its edge by shifting its priorities and developing new operational concepts, the Center for Strategic and Budgetary Assessments states in a report released Wednesday.

Story: CSBA: To regain EMS advantage, DOD should develop new CONOPs

By Courtney McBride
December 3, 2015 at 1:15 PM

Defense Secretary Ash Carter this afternoon announced his decision to open all combat positions to women, without exception.

“Our force of the future must continue to benefit from the best people America has to offer,” Carter told reporters at the Pentagon. “This includes women because they make up over 50 percent of the American population. We have to take full advantage of every individual who can meet our standards.”

The services have 30 days to submit their plans for gender integration to the office of the secretary.

Carter's decision was made over objections raised by the Marine Corps, which had sought exceptions. “We are a joint force and I have decided to make a decision which applies to the entire force,” he said.

Following his decision, Carter said, women will now “be able to drive tanks, fire mortars and lead infantry soldiers into combat.”

By Marjorie Censer
December 3, 2015 at 9:37 AM

(This regular feature highlights protests decided by the Government Accountability Office.)

Agency: Army Materiel Command

Awardee: Lockheed Martin Integrated Services

Protester: DRS Technical Services

What GAO found: DRS protested Army Materiel Command's issuance of a task order to Lockheed for system engineering, integrated logistics and fielding/training support services, arguing the Army was wrong to determine Lockheed did not have an organizational conflict of interest.

These conflicts occur when a contractor is tasked, for instance, with reviewing work that another part of the same company has undertaken.

GAO found some of the Army's analysis of this issue reasonable. However, GAO argued the Army "did not adequately consider" whether some tasks required by the solicitation would result in "impaired objectivity" for Lockheed.

GAO sustained the protest and recommended the "Army perform a more complete OCI investigation" before making a new award.

The decision: http://www.gao.gov/assets/680/673968.pdf

By Justin Doubleday
December 2, 2015 at 5:47 PM

The Navy is working on a long-term plan for investing in combat systems, a document which will act as an addendum to the service's 30-year shipbuilding plan.

Rear Adm. Jon HIll, the program executive officer for integrated warfare systems, said the 30-year "combat power plan" would align with the Navy's long-range construction plan for ships. The service issued its long-range vessel construction plan to Congress this past April

"We are going to move to make it an addendum to the 30-year shipbuilding plan," Hill said Wednesday at an industry symposium at the Navy Yard in Washington. "And the 30-year shipbuilding, new-construction plan doesn't include modernization, which is critically important. If we are going to overmatch the threat again and again, we have to talk about modernization more."

The document will represent the Navy's shift toward offensive firepower, Hill said, which is focused on "changing the calculus of the adversary." He said officials working on the plan are taking into consideration everything from potential advances in technology, such as hypersonic missiles, to geopolitics and the future role of the Navy.

He added that predicting the future beyond five years is difficult, but said the Navy would endeavor to do it anyway with the pending combat-power plan. The document is expected to cover the years between 2015 and 2045.

By Marjorie Censer
December 2, 2015 at 2:34 PM

Oshkosh's win in the Joint Light Tactical Vehicle program is not only a "game-changing" deal for the company, but also has altered how the Pentagon sees Oshkosh, the contractor's chief executive said this week.

Speaking at a Credit Suisse conference, Wilson Jones said the company's defense segment "is going to be a big driver of growth for us going forward."

"It's nice to be talking about defense again," he said, noting that the company expects its international sales to spike in fiscal year 2016 as it delivers Mine Resistant Ambush Protected All-Terrain Vehicles to the Middle East.

The JLTV win, which is still under protest, will provide "long-term positive outlook and also long-term free cash flow," he said.

"The whole program can go up -- a little over 30 years -- to 55,000 vehicles. That's the U.S. program," Jones said. "But if you take a step back and look at humvees around the world, there's over 240,000 of these around the globe that are going to be opportunities for us going forward."

At the same time, the JLTV award has changed the Pentagon's view of Oshkosh, he added.

"We're a technology leader now," Jones said, pointing to Oshkosh's production of the vehicle's armor.

He also took a moment during the conference to ensure attendees don't mistake the company for OshKosh B'gosh.

"We are the company that moves the world at work," Jones said. "We're not the little, cute, blue overalls for the kids. We're the truck company. We do get confused with that every now and then."

By John Liang
December 2, 2015 at 1:05 PM

Starting off this Wednesday INSIDER Daily Digest with news from the Pentagon's acquisition chief:

Kendall: 'Disproportionate' cuts coming to modernization in FY-17

The Pentagon is gritting its teeth for cuts to modernization programs in fiscal year 2017 to help address a $17 billion shortfall between what the Defense Department planned on spending and what is allowed under a recent congressional budget deal, according to Frank Kendall, DOD's acquisition chief.

Defense industry analysts spoke at a CSIS gathering this morning:

Panel praises two-year budget deal but says more work remains

Speakers at a Center for Strategic and International Studies panel on defense spending said the recently approved two-year budget deal provides a path forward, but argued more work remains to improve long-term stability.

A comprehensive review of the GPS OCX program is slated to kickoff on Friday:

Pentagon to launch OCX deep dive this week

The Office of the Secretary of Defense will launch a deep-dive review of the Air Force's next-generation Global Positioning System ground segment this Friday, according to the Pentagon's top acquisition official.

Defense Secretary Ash Carter was on Capitol Hill yesterday:

Carter tangles with lawmakers over counter-ISIL strategy

Defense Secretary Ash Carter sparred with members of the House Armed Services Committee on Tuesday over the Pentagon's plan to intensify the fight against the Islamic State of Iraq and the Levant.

Document: House hearing on U.S. strategy for Syria and Iraq

The Air Force's top uniformed official spoke about planning recently:

Welsh: Developmental planning is key to strategic planning credibility

Behind the Air Force's push to reintroduce a more robust developmental planning process is a grasp for more credibility in its long-term strategic outlook, according to the service's top uniformed official.

By Marjorie Censer
December 2, 2015 at 12:18 PM

Science Applications International Corp. said Wednesday sales in its most recent quarter rose 14 percent to hit $1.1 billion.

However, quarterly profit declined 8 percent to reach $34 million.

The contractor noted that its sales actually declined when adjusted to reflect the acquisition of Scitor and blamed the contraction on "lower material volume on supply chain contracts" and reduced Scitor sales.

SAIC blamed its reduced profit on increased interest expense on loan borrowings related to the Scitor deal.

By Marjorie Censer
December 2, 2015 at 10:34 AM

Kay Sears, the president of Intelsat General, told Inside Defense in an interview last week that she sees "reason for optimism" in the Pentagon's and Capitol Hill's push to consider new ways to purchase commercial satellite services.

The Air Force last year established a five-phased pathfinder program to test and identify new and more affordable ways of buying these services.

"I think these are very promising steps," Sears said, praising the leadership in place at the Air Force and on Capitol Hill.

She noted that the commercial and government worlds are beginning to converge in the space and satellite arena.

"Innovative companies are basically saying space is not just a government domain, space is not going to be a military domain. It's going to be a commercial domain," Sears said. "It's going to be entrepreneurial, and it's going to be a place where companies think they can create new business and new applications."

As a result, "the government is watching this innovation, and they're saying, 'How do we get a piece of that? How do we leverage off that so we don't have to be the ones who are investing?'" she continued.

She said Intelsat is also trying to take advantage of this innovation, investing in antenna technologies and OneWeb, a company that is planning to build a constellation of low earth orbit satellites.

But at the same time, Sears said her company is touting its lengthy experience in the industry.

"A lot of these new space companies -- they're exciting, but they're not experienced," she said.

By Marjorie Censer
December 2, 2015 at 9:50 AM

Naval engineering and design firm Gibbs & Cox said this week it has acquired Donald L. Blount and Associates, which specializes in naval architecture and marine engineering services.

The deal is meant to continue to expand Gibbs & Cox into work on commercial vessels, including mega yachts and production boats, the company said.

In the announcement, Rick Biben, Gibbs & Cox's chief executive, said the company would continue to look for other potential acquisitions.

By Marjorie Censer
December 2, 2015 at 9:48 AM

BAE Systems' U.S.-based business said today it has appointed Michael Vickers, the former under secretary of defense for intelligence, to a three-year term on its board of directors.

Vickers, whose appointment is immediate, served as under secretary of defense for intelligence from 2011 until April of this year. Before that, he was assistant secretary of defense for special operations, low-intensity conflict and interdependent capabilities.

He has also been an operations officer with the CIA and a special forces officer in the Army.

By John Liang
December 1, 2015 at 6:54 PM

The White House Office of Management and Budget is slated to give DOD its "passback guidance" for fiscal year 2017 topline budget numbers as early as next Monday, according to Pentagon Comptroller Mike McCord.

McCord made the remark yesterday at the Center for Strategic and International Studies, adding that the FY-17 submission is expected to occur on time in the second week of February. As Inside Defense reported:

"It's crunch time, for sure," he said. "We have a couple of issues to finalize -- the European Reassurance Initiative is one, as well as the particulars of OCO funding."

[CSIS defense budget analyst Todd] Harrison, who closely analyzes the Pentagon's OCO budget, told Inside Defense he believes that "a significant increase in ERI would mean raising it to an annual level of $2 [billion] or $3 billion."

McCord said, however, that DOD is concerned that its new budgetary commitment for the ERI remains in the department's OCO account, which is not meant to be a permanent part of the budget.

He noted that the BBA arrangement -- which sets $58.8 billion as the "floor" for the department's OCO spending in FY-16 and FY-17 -- would expire at the end of the next fiscal year.

By John Liang
December 1, 2015 at 1:00 PM

We begin this Tuesday INSIDER Daily Digest with news that the Army has an RFI out for a counter-rocket technology:

Army seeking contractor support services for base-protection systems

The Army has published a request for information seeking vendors to support its array of legacy systems for countering enemy rockets, artillery and mortars threatening forward bases.

DOD has given the go-ahead for a TOW missile sale to Morocco:

Pentagon OKs possible $157 million missile sale to Morocco

The Defense Department has approved a possible foreign military sale of tube-launched, optically tracked, wire-guided 2A missiles to Morocco for $157 million, according to an announcement earlier this month.

The Army is looking to get more spy planes:

Army awards multimillion-dollar contract to L-3 for spy plane program

The Army last week awarded L-3 Communications a $129.6 million contract to modify fixed-wing aircraft that will be used as spy planes, according to a Defense Department notice.

Some Littoral Combat Ship news:

Navy plans to split up short-term LCS mission package work

The Navy is planning to break up a short-term contract it had pegged for Littoral Combat Ship mission module production, integration services and sustainment into two separate awards, according to a recent notice.

The Navy and Marine Corps are working on a new concept for littoral operations:

Navy, USMC developing concept for littoral ops in a contested environment

The Navy and Marine Corps are developing a littoral operations in a contested environment concept and plan to discuss it at a naval board in early December, according to a service official.

The Navy wants to see whether the P-8 Poseidon aircraft can carry cargo:

NAVAIR directs Boeing to conduct P-8A Poseidon analysis

Naval Air Systems Command recently directed Boeing to analyze carrying palletized materials aboard a P-8 Poseidon aircraft with the information due to the service in March, according to a Navy spokeswoman.