The Insider

By Marjorie Censer
November 13, 2015 at 1:35 PM

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

Agency: Naval Sea Systems Command

Protester: Global Technical Systems

What GAO found: Global Technical Systems protested a Naval Sea Systems Command solicitation for common processing system technology insertion equipment, arguing the procurement should have been set aside for small businesses.

"GTS contends that the Navy's market research was flawed in several significant respects and that the agency’s goal in conducting market research was to justify its prior conclusion that small businesses could not perform the contract, rather than to fairly assess whether the agency would likely receive proposals from two or more small businesses capable of performing the work," the GAO report reads.

GAO disagreed with this assertion, but backed the protester's additional complaint that the solicitation did not provide enough information to allow offerors to compete on a common basis. The report says the solicitation contained "no description, beyond the vague requirement to provide analysis, conduct studies and/or support engineering changes, of the type of work to be performed or the goals to be achieved.

"As a result, offerors had no basis on which to formulate their proposed labor mix under this lowest-priced technically acceptable procurement," GAO adds, recommending the agency amend the solicitation.

The decision: http://www.gao.gov/assets/680/673628.pdf

By John Liang
November 13, 2015 at 1:00 PM

We start off this Friday INSIDER Daily Digest with some missile defense news:

Army, Northrop, Raytheon notch cruise missile intercept in first test of new system

A new Army missile defense system -- still in development and also being readied for potential export to Europe and the Middle East -- scored a direct hit on a cruise missile target in its first intercept attempt, early validation of the $6.9 billion Integrated Air and Missile Defense Battle Command System (IBCS) that aims to integrate all air and missile defense sensors, weapons and mission control.

Lots of Air Force news to talk about today as well:

Air Force to determine GPS OCX way ahead by early next year

The Air Force and the Office of the Secretary of Defense are preparing to launch a second deep dive review of the next-generation Global Positioning System operational control segment, and should know within two months whether the service will continue forward with the current development program.

JSTARS risk reduction continues without milestone A approval

The Air Force's plan to recapitalize its Joint Surveillance Target Attack Radar System has been approved for continued risk-reduction work, but the service is still awaiting milestone A approval for the program.

Air Force relying on European partners for near-term Mi-17 sustainment

The Afghan Air Force is investigating a replacement for its Mi-17 helicopters, but until a long-term solution is found, the U.S. military is turning toward former Soviet Bloc nations to keep them flying.

Air Force finalizing funding profile, timing for Air Force One replacement

With an approved acquisition strategy in place, the Air Force is now working to define a risk-reduction plan for the Presidential Aircraft Replacement program.

EC-130H simulator provides cost savings for 55th Wing training forces

The addition of a new EC-130H Compass Call simulator at Air Combat Command's Davis-Monthan Air Force Base, AZ has not only provided high-fidelity training for the 55th Wing, it is also projected to save more than $18,000 per training mission, according to command officials.

By Courtney Albon
November 13, 2015 at 12:56 PM

Highlights from this week's Inside the Air Force:

1. The Air Force is working to finalize a funding profile for the Presidential Aircraft Replacement program.

Full story: USAF finalizing funding profile, timing for Air Force One replacement

2. The 55th Wing at Davis-Monthan Air Force Base in Arizona has seen significant efficiencies through upping its use of simulators as part of its flight training plan.

Full story: EC-130H simulator provides cost savings for 55th Wing training forces

3. The Air Force is entering into its second deep-dive review of the next-generation Global Positioning System operational control segment, and expects to know by early next year whether it will stay the course with the troubled program.

Full story: Air Force to determine GPS OCX way ahead by early next year

By John Liang
November 13, 2015 at 12:54 PM

Highlights from this week's edition of Inside the Pentagon:

1. The chairman of the Senate Judiciary Committee has launched an investigation into alleged misspending by a now-disbanded Pentagon business task force -- a move welcomed by the Special Inspector General for Afghanistan Reconstruction, who alleges that defense officials have failed to provide satisfactory answers to his inquiries.

Full Story: SIGAR welcomes Senate Judiciary Committee interest in former OSD task force

2. The Pentagon is working to assure industry officials that their intellectual property will be protected as the Defense Department continues to introduce open architecture into weapon systems, according to a senior defense official.

Full Story: Baldwin: DOD must work to protect intellectual property in open architecture

3. The Pentagon is examining the microelectronics industrial base in an effort to determine the industry's current capabilities and help improve partnerships going forward, according to defense officials.

Full Story: DOD study is examining microelectronics industrial base

By Marjorie Censer
November 12, 2015 at 4:28 PM

Centerra Group said today it has appointed Deborah Ricci chief financial officer.

Ricci previously served as CFO at A-T Solutions, which was acquired by PAE earlier this year. She was also CFO of the Allied Defense Group.

Centerra Group was formed after G4S Government Solutions was sold to a private-equity firm late last year. The company, which saw significant business during the war in Iraq, is now seeking growth by moving into adjacent markets.

Earlier this year, for instance, it bought Gregg Protection Services, which specializes in protecting nuclear and biological assets.

By John Liang
November 12, 2015 at 1:30 PM

We start off this Thursday INSIDER Daily Digest with some budget news:

FY-17 promises less for third-offset strategy, stability for big-ticket weapons programs

The two-year budget deal enacted last week will require the Pentagon to execute a spending plan in fiscal year 2017 that is $14.9 billion short of the amount originally sought, a decrement that will curtail desired investments to develop new “third-offset” capabilities, but not likely to disrupt acquisition plans for the portfolio of legacy, big-ticket weapons programs.

Defense contractor news that was just posted:

Seabury hires Aerojet Rocketdyne executive following Kubasik departure

Seabury Global Aerospace & Defense Consulting said Thursday it has named Paul Meyer, formerly of Aerojet Rocketdyne, executive vice president.

Intellectual property is important to the Defense Department:

Baldwin: DOD must work to protect intellectual property in open architecture

The Pentagon is working to assure industry officials that their intellectual property will be protected as the Defense Department continues to introduce open architecture into weapon systems, a senior defense official said last week.

Unmanned aircraft now have a longer leash:

Army's ground-based, sense-and-avoid program receives FAA approval

In a significant step toward allowing unmanned aircraft to fly without the use of a visual observer or chase plane, the Federal Aviation Administration has given the Army's Gray Eagle drones the green light to fly at Ft. Hood, TX, using just the service's ground-based, sense-and-avoid system to avoid other aircraft, according to service officials leading the effort.

The microelectronics industrial base is something DOD is taking a close look at:

DOD study is examining microelectronics industrial base

The Pentagon is examining the microelectronics industrial base in an effort to determine the industry's current capabilities and help improve partnerships going forward, according to defense officials.

By Marjorie Censer
November 12, 2015 at 10:41 AM

Orbital ATK said today it has established a jointly-owned subsidiary in Riyadh, Saudia Arabia, to support the company's growing presence in the region.

Salman Al Malik is the chief executive of the new company, known as Alliant Techsystems Operations.

As defense contractors increasingly seek international business to combat a slowdown in U.S. spending, the Middle East has become an area of intense focus. Last year, Booz Allen Hamilton added five partners to the region to boost its presence, while Lockheed Martin opened a new collaboration center in Abu Dhabi.

Earlier this week, Boeing announced it plans to establish its Middle East headquarters in Dubai South's aviation district in 2017.

By Marjorie Censer
November 12, 2015 at 10:09 AM

BAE Systems said today that following a strategic review, the contractor will retain its U.S.-based manpower and services businesses within its intelligence and security sector.

In April, the company announced it had hired external advisers to assess the businesses, which it said had "generated external interest and a number of inquiries."

Yesterday, Reuters reported BAE was in advanced talks with Veritas Capital Management about selling the businesses.

But BAE said today the "review has concluded that retaining the businesses within BAE Systems, Inc. delivers greater value. The business continues its good performance and order intake."

In an email to Inside Defense, BAE spokesman Brian Roehrkasse said "there was never any certainty that a transaction would occur."

He noted the business recently won a single-award contract worth up to more than $1 billion over 10 years for government information technology services and a recompete contract for five more years of air traffic control and landing systems work for the Marine Corps.

The company added that the product-focused geospatial intelligence business within the intelligence and security sector is still set to move to BAE's electronic systems sector on Jan. 1.

By Marjorie Censer
November 12, 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 early November 2014, Rep. Mac Thornberry (R-TX) and Sen. John McCain (R-AZ) were poised to take over the reins of the House and Senate Armed Services committees respectively.

Industry observers were predicting increased oversight, particularly with McCain heading the Senate committee.

A year later, the two congressional leaders have taken significant action to advance acquisition reform, and they promise they're not done. McCain said this week he has started a review of the U.S. defense organization, specifically focused on updating the Goldwater-Nichols reform legislation passed 30 years ago.

Full story: Defense Industry Observers Predict Change Following Election

By John Liang
November 11, 2015 at 2:15 PM

On Veterans Day, we start off this INSIDER Daily Digest with coverage of a new DOD report on the defense industry:

Pentagon identifies excessive requirements imposed on defense industry

The Pentagon has released a 160-page report identifying excessive costs imposed on the defense industry, as well as recommendations on how to begin eliminating them.

Document: DOD report on excessive industry requirements

The Pentagon has issued a final rule regarding supply chain risk-reduction standards:

With new rule in place, contractors taking increasingly hard look at supply chain

Contracting advocates say the defense industry is increasingly under pressure to verify and diversify their groups of suppliers, facing expanding regulation from the Pentagon.

Document: DOD regulation on supply chain risk-reduction standards

The Pentagon's cyber chief spoke this week about industry vulnerabilities:

Government withholding 9 percent of discovered cyber vulnerabilities from industry

The federal government has withheld from industry 9 percent of cyber vulnerabilities found over the past year because secret knowledge of them could prove advantageous in the future, according to Adm. Michael Rogers, director of the National Security Agency and chief of U.S. Cyber Command.

In case you didn't know, we have a Notification Center where you can sign up to receive alerts as they are posted on key topics, "cyber" for instance. Click here to start.

Some more Army news from this week's Inside the Army:

Industry day set for effort to boost commanders' cyber situational awareness

The Army announced it would host a Nov. 18 industry day to disclose information about a new effort to improve brigade commanders' understanding of cyber threats in their area of responsibility.

ISIL's roadside bombs prolonging fight to win back Ramadi

U.S. military officials cited improvised explosive devices littering the area around Ramadi as one reason for the holdup in the campaign to retake the Iraqi city from the Islamic State of Iraq and the Levant.

And some more from this week's Inside the Navy:

Defense Department considering giving allies access to MUOS

Officials within the defense secretary's office initiated discussions with allied nations earlier this year to potentially give those countries access to the Navy's next-generation satellite communications system, a Defense Department spokesman confirmed.

Navy to release LDUUV solicitation 'very soon'

The Navy will release a request for proposals for development of the Large Displacement Unmanned Undersea Vehicle "very soon," with the service working to finalize the document before the end of the calendar year, according to a program official.

By Marjorie Censer
November 11, 2015 at 11:25 AM

Colt Defense said this week it has taken the next step to emerge from Chapter 11 bankruptcy protection with the approval of the disclosure statement for its second amended plans of reorganization.

As a result, creditors will be able to vote on the plan as soon as next week, the company said.

"If approved, the Plan will allow Colt to raise substantial new equity and debt to meet its business and capital needs, restructure its pre-bankruptcy debts, provide meaningful recoveries to creditors and remain in its existing production facility in West Hartford, [CT]," Colt said in its announcement. "If the Plan is approved the Company plans to emerge from Chapter 11 before the end of the year."

By Tony Bertuca
November 10, 2015 at 3:07 PM

Pentagon Press Secretary Peter Cook said today that Defense Secretary Ash Carter expects President Obama to sign the newly passed $607 billion defense authorization bill, despite language prohibiting the closure of the Guantanamo Bay detention facility.

“Overall, the secretary supports the president's decision to move forward and sign this bill,” Cook said during a press conference. “We'd like to move this process forward. There may be aspects of the bill -- in the Guantanamo section in particular -- that are problematic, but the larger bill and the importance of getting some certainty going forward” are enough to outweigh those concerns.

The Senate voted 91-3 today to pass the bill, while the House overwhelmingly passed it 370-58 on Nov. 5. Obama vetoed the first version of the bill, but a broad congressional budget deal has made the legislation more palatable for Democrats.

Meanwhile, media reports indicate that the Pentagon will soon roll out a plan for closing the detention facility, though it remains unknown whether the president will seek congressional approval to do so or use an executive order.

By Courtney McBride
November 10, 2015 at 2:33 PM

Sens. Tim Kaine (D-VA) and Jeff Flake (R-AZ) aim to renew their bipartisan call for an updated Authorization for the Use of Military Force (AUMF) governing U.S. military action against the Islamic State in Iraq and the Levant.

During a business meeting of the Senate Foreign Relations Committee this morning, Kaine said he and Flake have “had a bipartisan resolution dealing with an authorization for military action against [ISIL] . . . on the table for five months now,” and urged swift action on the issue, according to a transcript provided by Kaine's office.

At the meeting, Kaine expressed hope that the panel's closed session today with Amb. Brett McGurk would provide some insight into the legal authorities for U.S. action against ISIL. McGurk serves as the special presidential envoy for the Global Coalition to Counter ISIL, as well as deputy assistant secretary of state for Near Eastern affairs.

Noting ISIL's record in the region, Kaine said “so many of these atrocities are so beyond the pale -- in a world that produces one atrocity after the next they are just beyond the pale -- and I worry about our silence on this work.”

Kaine cited a Nov. 6 letter to House Speaker Paul Ryan (R-WI), signed by 35 members from both parties, which called for the chamber to “schedule and debate an [AUMF] as quickly as possible.”

The representatives maintain that recent steps by the Obama administration, including the deployment of a small contingent of special operators to Syria, “represent a significant escalation in U.S. military operations in the region and place U.S. military personnel on the front lines of combat operations,” according to the letter.

The bipartisan group notes, “We do not share the same policy prescriptions for U.S. military engagement in the region, but we do share the belief that it is past time for the Congress to fulfill its obligations under the Constitution and vote on an AUMF that clearly delineates the authority and limits, if any, on U.S. military engagement in Iraq, Syria, and the surrounding region.”

The letter warns, “as long as the House fails to assert its constitutional prerogatives and authority, the Administration may continue to expand the mission and level of engagement of U.S. Armed Forces throughout the region.”

By John Liang
November 10, 2015 at 2:18 PM

We start off today's Daily Digest with some news on the Iranian ballistic missile threat:

Senior military officer says Iranian ICBM threat delayed until later this decade at 'earliest'

Iran will not deploy an operational intercontinental ballistic missile until "later this decade at the earliest," according to a senior U.S. military official, in a statement that appears to reflect a recalibration of a longstanding U.S. government prediction that Tehran could flight test an ICBM capable of hitting the United States by 2015.

In case you didn't know, we have a Notification Center where you can sign up to receive alerts as they are posted on key topics, missile defense for instance. Click here to start.

In the realm of defense acquisition, Sen. John McCain (R-AZ) is looking through the Pentagon organization with a fine-tooth comb:

McCain & co. launch review of U.S. defense organization

Promising to "first, do no harm," Senate Armed Services Committee Chairman John McCain (R-AZ) has begun a review of the U.S. defense organization, specifically with an eye toward updating the landmark Goldwater-Nichols reform legislation passed 30 years ago.

Even though it's Tuesday, we have a fair bit of Air Force news:

Air Force may back down from near-term A-10 retirement push

The Air Force's fiscal year 2017 budget request may propose delaying its plan to retire the A-10 Warthog by a few years due to increased demand, according to the head of Air Combat Command.

Air Force expanding space, cyber and ISR work among coalition partners

The Air Force and its allied partners have no shortage of strike forces around the globe, but they are still lacking in both cyber and intelligence, surveillance and reconnaissance capabilities, according to the service's assistant deputy under secretary of international affairs.

Air Force: New 3DELRR award now delayed three to six months

The Air Force now expects to make a new award decision on the Three-Dimensional Expeditionary Long-Range Radar program in the second quarter of fiscal year 2016, according to a service spokesman.

Last (but not by no means least), the senior U.S. military officer in Europe is calling on industry to help mitigate a revanchist Russia:

Breedlove asks for industry's help to counter Russian capabilities

The head of U.S. forces in Europe wants the Pentagon to collaborate with industry to ensure the United States' ability to operate successfully amid anti-access/area denial challenges posed by the Russian military.

By Marjorie Censer
November 10, 2015 at 1:19 PM

A new report commissioned by the IBM Center for the Business of Government recommends the Pentagon continue its efforts at agile acquisition, remain focused on how it buys services and build partnerships beyond traditional defense contractors.

The report, written by two professors at Syracuse University's Maxwell School of Business, is titled "Beyond Business as Usual: Improving Defense Acquisition through Better Buying Power."

In particular, the study recommends DOD "continue building on both its own and congressionally sponsored efforts to make defense acquisition more agile -- faster and more adaptive to changing circumstances." This requires improving its processes and human capital, the document adds.

Additionally, the report recommends the Pentagon maintain its focus on improving services acquisition -- recognizing the diversity of that market -- and find companies beyond the existing defense industrial base with which to do business.

Read the full report.