The Insider

Protest Spotlight
By Marjorie Censer
December 10, 2015 at 10:33 AM

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

Agency: Navy

Awardee: Celeris Systems

Protester: INDUS Technology

What GAO found: INDUS protested the Navy's issuance of a task order to Celeris for engineering, technical and business support services, challenging the way the Navy evaluated past performance and cost realism.

INDUS's evaluated cost estimate for the solicitation, which was set aside for small businesses, was $31.8 million, while Celeris was $33.3 million.

"The [source-selection authority] concluded that, after considering the various strengths and weaknesses, as well as the cost risks involved in INDUS’ proposal, the advantages offered by Celeris’ proposal warranted the associated $1,445,724 (4.5 percent) evaluated cost premium," GAO wrote.

GAO noted that it "considered all the issues raised by INDUS and find that none warrant sustaining its protest."

The decision: http://www.gao.gov/assets/680/674032.pdf

Throwback Thursday -- ULA
By Marjorie Censer
December 10, 2015 at 9:00 AM

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

In December 2006, Lockheed Martin and Boeing created the 50-50 venture known as United Launch Alliance to provide space launch services for the U.S. government. 

The companies had received Federal Trade Commission approval in October of that year.

This week, John McCain, the chairman of the Senate Armed Services Committee, is asking the Pentagon to evaluate whether ULA truly cannot compete for an upcoming Global Positioning System launch. The company announced in mid-November it would not compete, citing an inadequate supply of RD-180 engines, concerns the lowest-price, technically acceptable contract structure will not give weight to the company's successful track record and its lack of adequate accounting systems to prove that a previous contract would not benefit its bid.

In a Dec. 8 letter to Defense Secretary Ash Carter, McCain writes that he finds ULA's reasons for bowing out of the first competitive Evolved Expendable Launch Vehicle opportunity "troubling and suspicious."

Congress to extend shutdown deadline
By Tony Bertuca
December 9, 2015 at 5:18 PM

Congress is poised to extend its deadline to pass an omnibus spending bill from Dec. 11 to Dec. 16, according to a statement released today by the House Appropriations Committee.

The new continuing resolution, introduced by committee Chairman Hal Rogers (R-KY), would prevent a government shutdown.

"While progress is being made on negotiations for a full-year omnibus appropriations bill, it is clear that more time is needed to complete the package," Rogers said in the statement.

"This short-term funding resolution will keep the lights on in government and maintain current operations for a few days so Congress can complete and pass an agreement," he continued. "It is my hope and expectation that a final, year-long bill will be enacted before this new deadline."

The INSIDER daily digest
By John Liang
December 9, 2015 at 2:47 PM

We start off this Wednesday INSIDER Daily Digest with Defense Secretary Ash Carter testifying on Capitol Hill this morning:

Carter pleads for omnibus spending bill as negotiations stall

Defense Secretary Ash Carter is pleading with Congress to pass a fiscal year 2016 omnibus spending bill amid news that negotiations between Republicans and Democrats have stalled as the government inches toward a Friday deadline.

Document: Senate hearing on countering ISIL

The Army is setting its sights on the Asia Pacific:

Army locks in funding for Pacific Pathways exercises until FY-22

The Army has inserted funding in the fiscal year 2018 to FY-22 program objective memorandum for three annual series of drills in the Asia-Pacific region, according to the head of the service's Pacific Command.

Some unmanned systems news from the Navy:

Fleet input on unmanned-system gaps due this month

The Navy is due this month to receive input from fleet commanders on gaps they see in their unmanned systems capabilities, according to a top service official.

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

More news from this week's Inside the Army:

U.S. defense contractor numbers swell again in Central Command area

The number of contractors working for the U.S. Defense Department within the U.S. Central Command area has seen an uptick recently, as America is getting drawn deeper into the fight against the Islamic State.

Army focuses on training as it fields resource planning systems

The Army is zeroing in on training soldiers with newly fielded enterprise resource planning systems as the key to the service's ability to become audit-ready by fiscal year 2018.

Army weighs utility of multiple-award, task-order contracts

The Army is evaluating whether a type of large, multiple-award contract is really as fast-paced or cost-effective as it was envisioned to be, according to a top service procurement expert.

A couple recent documents of note:

DOD joint doctrine on noncombatant evacuation operations

The Nov. 18, 2015, document "provides doctrine to plan and conduct joint noncombatant evacuation and repatriation operations."

DOD joint doctrine on public affairs

The Nov. 17, 2015, document "provides doctrine to plan, execute, and assess public affairs activities in joint operations to include fundamentals, roles, responsibilities, and relationships to joint functions and capabilities."

U.S. helos may be headed to Iraq
By Tony Bertuca
December 9, 2015 at 2:45 PM

Defense Secretary Ash Carter told the Senate Armed Services Committee today that the United States was prepared to send attack helicopters and "accompanying advisers" to Iraq to help the military there re-take the city of Ramadi from the Islamic State of Iraq and the Levant.

"The United States is prepared to assist the Iraqi army with additional unique capabilities to help them finish the job, including attack helicopters and accompanying advisers if circumstances dictate and if requested by Prime Minister [Hader al-]Abadi," Carter said.

Approximately 3,600 U.S. troops have been deployed to Iraq since the beginning of U.S. counter-ISIL operations, though Carter recently approved a new "expeditionary targeting force" of 100 special operations troops.

Iran Concerns
By John Liang
December 9, 2015 at 1:09 PM

Sens. Mark Kirk (R-IL) and Kelly Ayotte (R-NH) wrote to President Obama this week to ask how the administration plans to respond to Iran's most recent ballistic missile test.

On Nov. 21, Iran conducted a test of a ballistic missile with a reported range of 1,200 miles, enabling that country to strike Israel and Eastern Europe.

In their letter, the senators write:

"While your administration has attempted to treat Iran's ballistic missile program as separate from Iran's nuclear program, this approach does not withstand scrutiny -- as [Director of National Intelligence James] Clapper's testimony makes clear. Iran is developing ICBM capabilities and the sole purpose of an Iranian ICBM is to enable delivery of a nuclear weapon to the United States. Perhaps that is one of the reasons why former Chairman of the Joint Chiefs of Staff, General Martin Dempsey, testified that '. . . under no circumstances should we relieve pressure on Iran relative to ballistic missile capabilities.' Unfortunately, that is exactly one of the things that the Iran deal will accomplish."

The senators reiterated their concern that Iran's behavior demonstrates that the country will not abide by the commitments under the Iran nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA).

 

U.S., Japan conduct SM-3 Block IIA non-intercept flight test
By John Liang
December 8, 2015 at 9:12 PM

The U.S. and Japanese militaries have conducted a non-intercept flight test of the Standard Missile-3 Block IIA system off the coast of California, according to a Missile Defense Agency statement released this evening.

The interceptor was launched from the Point Mugu Sea Range on San Nicolas Island, off the coast of California, the MDA statement reads.

"This test, designated SM-3 Block IIA Cooperative Development Controlled Test Vehicle-02, was a live fire of the SM-3 Block IIA. The missile successfully demonstrated flyout through kinetic warhead ejection. No intercept was planned, and no target missile was launched," according to the agency.   

In a separate statement, Raytheon said the next live-fire test of the SM-3 Block IIA in 2016 "is planned to include an intercept of a ballistic missile target."

On the same day, MDA announced it had awarded Raytheon a $543 million contract modification to manufacture, assemble, test, and deliver 17 SM-3 Block IIA missiles.

The INSIDER daily digest
By John Liang
December 8, 2015 at 2:19 PM

Kicking off this Tuesday INSIDER Daily Digest with the latest on the ACV contract award:

General Dynamics Land Systems files GAO bid protest for ACV contract

Following a "thorough evaluation" of data surrounding the Marine Corps' selection for its next-generation amphibious vehicle competition, General Dynamics Land Systems has filed a bid protest Dec. 7 with the Government Accountability Office.

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

Coverage of a big review of the GPS ground station program:

AFSPC chief 'comfortable' with results of GPS OCX deep dive

The head of Air Force Space Command said Tuesday he is "comfortable" with the outcome of last week's Pentagon-level, deep-dive review of the next-generation Global Positioning System ground station.

Some big news from defense contractors CACI and L-3:

CACI International to buy L-3 Communications' services business for $550 million

CACI International said Tuesday it has agreed to pay $550 million for L-3 Communications' national security solutions business, a services unit that works with the Pentagon as well as intelligence and civilian agencies.

Development of the CH-53K King Stallion heavy-lift helicopter has hit a snag:

USMC reports CH-53K program delay; production decision pushed to 2017

The Marine Corps has reported a new schedule breach in its effort to develop the CH-53K King Stallion heavy-lift helicopter, a six-month setback that will hold up consideration of whether to transition the Sikorsky-led, $29 billion program from development to production from next summer until early 2017.

DOD can't rely on Silicon Valley for all its cutting-edge technology needs:

Chao: Pentagon must look beyond Silicon Valley to find best technology

To ensure it can access the most cutting-edge technology, the Pentagon must cast a wider net and remove some barriers to entry, one panelist at a Center for Strategic and International Studies event said Monday.

Some stories from the front page of this week's Inside the Army:

Army organizations get 'generational' review; results expected in late 2016

Army officials are embarking on a yearlong review of the service's plethora of individual organizations to determine the optimal configuration of America's ground forces, according to an official.

Army aims to boost aviation presence in Europe with upcoming request

U.S. Army Europe plans to request before Christmas a boost in its rotational forces in an attempt to gain back readiness and capability lost as a result of the service's Aviation Restructuring Initiative.

Army's electronic-warfare training seen as lagging behind Russian efforts

The Army's lack of dedicated electronic-warfare units is keeping U.S. soldiers several steps behind their Russian counterparts, according to the service's electronic-warfare chief.

AM General names former Oshkosh executive CEO
By Marjorie Censer
December 8, 2015 at 11:23 AM

AM General said today it has appointed Andy Hove, who led Oshkosh Defense to major wins in the MRAP All-Terrain Vehicle and Family of Medium Tactical Vehicles programs, its new chief executive.

The announcement moves Hove to the helm of a company he once saw as a rival. Oshkosh earlier this year beat out AM General in the Joint Light Tactical Vehicle competition, which is currently under protest.

After leaving Oshkosh, Hove served as president and chief executive of HDT Global. Before his tenure at Oshkosh, he headed BAE Systems' Bradley Combat Systems program.

Hove succeeds Charlie Hall, who is retiring, AM General said.

L-3 expects sales decline in 2016
By Marjorie Censer
December 8, 2015 at 11:06 AM

Though L-3 Communications expects the Pentagon budget to resume growing in fiscal year 2016, the company says its business units will see revenue decline during the year, according to new slides posted today to coincide with the company's investor meeting.

The contractor reported its electronic systems business is expected to post 2016 sales of $4.2 billion to $4.3 billion, down 2 percent from 2015, while its aerospace systems business has anticipated revenue of $3.9 billion to $4 billion, down 4 percent from the prior year. The communications systems business is expected to report sales of $1.9 billion to $2 billion, down 4 percent from 2015.

In 2016, L-3 expects U.S. government sales to make up 72 percent of sales, while international and commercial business will each comprise about 14 percent. The company attributed its anticipated organic growth decline to a 15 percent reduction in international sales.

Full presentation: http://ow.ly/VCBDi

MDA extends counterintelligence proposals due date
By John Liang
December 8, 2015 at 11:00 AM

The Missile Defense Agency has extended the proposal due date for a counterintelligence support effort from Dec. 10 to Dec. 21, according to a recent Federal Business Opportunities notice.

The proposed effort would provide MDA "with advisory and assistance services in support to detect, identify, assess, exploit, penetrate, degrade and counter or neutralize intelligence collection efforts, other intelligence activities, sabotage, espionage, sedition, subversion, assassination and terrorist activities directed against the Missile Defense Agency, its personnel, information, material, facilities and activities worldwide."

Notice link: http://ow.ly/VCPc9

PSC, TECNA release new report on federal IT buying
By Marjorie Censer
December 8, 2015 at 10:45 AM

The Professional Services Council and the Technology Councils of North America today released a report titled "Delivering Results: A Framework for Federal Government Technology Access & Acquisition," setting out guiding principles to ensure the government can access all the capabilities of the private sector.

According to the report, the government must "identify and mitigate" barriers that prevent participation in the market by all providers. The government should also embrace collaboration, contracting flexibility and an understanding of risk management and rewards.

The full report: http://ow.ly/VCxt6

HII CEO: Ohio replacement program 'will happen'
By Marjorie Censer
December 7, 2015 at 4:38 PM

The most significant issue facing Huntington Ingalls is how the military decides to pay for the Ohio-class replacement submarine program, the company's chief executive said last week.

Speaking to a Credit Suisse conference, Mike Petters said the decision on how to cover the program's costs poses both the largest opportunity and the largest risk for the shipbuilder.

"I think there's no chance that Ohio replacement doesn't happen," he said. "This is a national priority and will happen. It's just a question of does it crowd out anything else, and -- if it crowds things out -- that could become a real risk for the industry."

"If it doesn't crowd things out," he continued, "then that could become a big opportunity."

Earlier today, Senate Armed Services Committee Chairman John McCain (R-AZ) said he isn't persuaded by a Congressional Budget Office estimate asserting that the Navy will save 5 to 10 percent if it purchases the next-generation ballistic missile submarine with a special fund:

McCain told reporters Dec. 7 in Washington that the Navy only has one budget and it does not matter how the funding is packaged.

"I do believe that you only have so much money in the budget -- you can call it and put it in some particular area, you can earmark it, you can do a lot of things but it's not going to change the amount of money," he said.

Additionally, Inside the Navy reports this week that the service and the Office of the Secretary of Defense are reviewing the finalized acquisition strategy for the program, after successfully completing an internal service milestone last month:

In November, Navy leadership approved the Ohio-class replacement submarine's technical baseline during a Navy Gate 4 review of the program, Naval Sea Systems Command spokeswoman Colleen O'Rourke wrote in a Dec. 1 statement to Inside the Navy.

The Navy and OSD leadership will rendezvous Dec. 21 to discuss a development request for proposals release during a Defense Acquisition Board meeting, according to a DAB calendar obtained by Inside Defense. The internal reviews are tentatively scheduled and can sometimes be delayed.

The INSIDER daily digest
By John Liang
December 7, 2015 at 2:16 PM

We kickoff this Monday INSIDER Daily Digest with news on the next-generation ballistic missile submarine:

McCain not persuaded by CBO on SSBN(X) cost savings estimate

Senate Armed Services Committee Chairman John McCain (R-AZ) is not persuaded by a Congressional Budget Office estimate 174275 asserting that the Navy will save 5 to 10 percent if it purchases the next-generation ballistic missile submarine with a special fund.

Navy, OSD reviewing multibillion-dollar acquisition strategy for SSBN(X)

The Navy and the Office of the Secretary of Defense are reviewing the finalized acquisition strategy for the Ohio-class replacement ballistic missile submarine after successfully completing an internal service milestone last month.

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

Some Navy unmanned systems news:

Navy eyes shortened acquisition to buy UCLASS

The Navy is considering employing an accelerated acquisition process to purchase the Unmanned Carrier-Launched Surveillance and Strike system, according to the service chief.

Navy leaders defend decision to not further extend X-47B demonstrator

Navy leaders have defended the service's decision to wind up work on the X-47B unmanned combat air systems demonstrator (UCAS-D) in fiscal year 2015, turning aside encouragement from lawmakers to continue experimenting with the aircraft system -- built at a cost of nearly $1.5 billion.

The top story in this week's Inside the Army is on service capability gaps:

Worldwide Army commands find new voice in capability-gap analysis

A relatively new method of mulling over Army capability gaps has afforded regional service commands around the world a chance to push for changes in doctrine and weapons, according to a key official.

The next iteration of the Sidewinder missile should reach IOC sometime between January and March 2016:

AIM-9X Sidewinder Block II missile to meet Air Force IOC by FY-16

With full-rate production authorized in August, the AIM-9X Sidewinder Block II air-to-air missile program is tracking to meet initial operational capability for the Air Force by the second quarter of fiscal year 2016, according to the missile's program manager.

DOD bolstering partnership with Singapore (Updated)
By Tony Bertuca
December 7, 2015 at 10:25 AM

Singapore, as part of a newly enhanced defense cooperation agreement (DCA) with the United States, will now allow the Navy's P-8 Poseidon surveillance aircraft to operate within its territory, according to a Pentagon notice.

The new agreement comes as the United States seeks to more greatly assert itself in the Asia Pacific amid territorial disputes driven by China's activities in the South China Sea.

Defense Secretary Ash Carter signed the new agreement at the Pentagon today with Singapore's Defense Minister Ng Eng Hen.

Both Carter and Ng noted that the P-8's "deployment would promote greater interoperability with regional militaries through participation in bilateral and multilateral exercises, while providing timely support for regional [humanitarian assistance and disaster relief] and maritime security efforts," according to the statement.

The "broad framework" of the new DCA focuses on enhanced cooperation in five key areas, "namely in the military, policy, strategic and technology spheres, as well as cooperation against non-conventional security challenges, such as piracy and transnational terrorism," according to the statement.

Both Singapore and the United States also agreed to bolster their cooperation in the areas of cyberdefense, biosecurity and public communications.

"Finally, the enhanced DCA also introduced new high-level dialogues between the two countries’ defense establishments," according to the statement.

The United States has signed similarly beefed up defense agreements with India, Australia and Japan.