The Insider

By Marjorie Censer
October 27, 2015 at 2:06 PM

The Pentagon's mentor-protégé program, which pairs larger contractors with smaller ones, has been undergoing a transition for the "past couple of years," the acting director of DOD's Office of Small Business Programs told Congress earlier today.

In prepared testimony, Kenyata Wesley said his office has formed government-led working groups to "to cultivate new relationships with DOD acquisition professionals and thereby facilitate the exchange of information and ideas with industry.

"These government working groups will yield greater continuity among all agencies and components and share the best practices and lessons learned to all DOD participants," Wesley wrote. "I have also directed my team to undertake the revision of [the] Department of Defense’s regulations to incorporate this feedback into the program."

The first drafts of those revisions are expected to be released for comment by the end of 2015.

Wesley said his office will also work with the Small Business Administration and other agencies to improve the program.

He also noted in his testimony that he has directed his staff to develop metrics to demonstrate the program's return on investment as well as "specific requirements for a more concrete developmental plan" that would consider a protégé company's progress, the benefits to the Pentagon from mentor-protégé agreements and goals for awards the small business might be able to win outside of the program.

Full testimony: House hearing on mentor-protégé programs

By John Liang
October 27, 2015 at 1:02 PM
Bomber Contract.

A heads-up for later this afternoon:

Air Force bomber award coming today

The Air Force will announce the winner of the Long-Range Strike Bomber contract today at 5:15 p.m., according to a Pentagon statement.

Budget Deal.

Looks like a bipartisan budget deal is close to fruition:

Defense to benefit as Congress outlines budget deal

Congressional leaders have agreed to a potential bipartisan budget deal that would raise the debt ceiling and lift sequestration spending caps by $80 billion for the next two fiscal years, with the Obama administration poised to receive $33 billion of the $38 billion national defense spending increase it has sought for fiscal year 2016, according to official documents and sources familiar with the still-emerging details.

Document: Bipartisan Budget Act Of 2015

Radar Appeal Rejected.

A federal appeals court has upheld a court decision backing the Air Force's effort to award a new contract in the Three-Dimensional Expeditionary Long-Range Radar program:

Court backs Air Force effort to award new 3DELRR deal

The Air Force can continue its effort to award a new contract in the hotly contested Three-Dimensional Expeditionary Long-Range Radar program after the Court of Federal Appeals upheld the Court of Federal Claims' decision.

Nuke Triad.

The Navy and Air Force want common components for the nuclear triad:

Navy, Air Force conducting triad commonality study to cut costs

The Navy and Air Force are conducting a study about common components across the nuclear triad in order for the military to modernize the force while cutting cost, according to a senior Navy official.

Out Of Africa.

The Army is facilitating a lot of military sales to Africa:

Army saw jump in African foreign military sales in fiscal year 2015

The Army's foreign military sales saw a significant jump within U.S. Africa Command, with transfers in fiscal year 2015 surpassing FY-14 numbers by more than 100 cases, according to the Army's Security Assistance Command.

By Tony Bertuca
October 27, 2015 at 11:17 AM

The Air Force will announce the winner of the Long-Range Strike Bomber contract today at 5:15 p.m., according to a Pentagon statement.

The announcement will result in an award -- valued by some analysts as worth nearly $80 billion -- to either a Boeing-Lockheed Martin team or Northrop Grumman.

Defense Secretary Ash Carter, joined by Air Force Secretary Deborah Lee James and Air Force Chief of Staff Gen. Mark Welsh, is expected to personally announce the winner.

By Tony Bertuca
October 26, 2015 at 3:01 PM

Though several media reports have surfaced today indicating that Democrats and Republicans are close to an accord that would lift the debt ceiling and fund the federal government for the next two fiscal years, White House Press Secretary Josh Earnest stressed that a deal has yet to be inked.

"Nothing is agreed to in the context of those discussions until everything is agreed to," he said Oct. 26. "As I stand here today, not everything has been agreed to and that means that nothing at this point has been agreed to."

Earnest said increased defense spending -- matched by a "dollar for dollar" increase in other government funding -- needs to be at the core of any deal that would lift the spending caps imposed by the 2011 Budget Control Act, also known as sequestration.

At present, the GOP has put forth spending plans that circumvent the BCA caps for defense by using the exempt overseas contingency operations account, while leaving them in place for other areas of government.

"We have acknowledged that any sort of budget agreement will be a compromise," he said. "And that means that there will be things included in that bill that we're not very happy about."

For instance, some media outlets reported that lawmakers have agreed on cuts to Medicare and Social Security, some of which could be reinvested for increases in defense and non-defense spending.

"However much they can come up with in savings, and whatever they decide is the defense versus non-defense split will determine how much defense gets," according a Hill staffer. "I think most people agree it's a two-year deal or bust."

Congress has until Nov. 3 to raise the debt ceiling and until Dec. 11 to keep the federal government funded.

Meanwhile, the House is set to vote Thursday on a speaker to succeed Rep. John Boenher (R-OH), who is retiring at the end of the month. Rep. Paul Ryan (R-WI) has emerged as a leading candidate after securing the support of many in the GOP's anti-spending wing known as the Freedom Caucus. Ryan, along with Sen. Patty Murray (D-WA), helped cobble together a compromise to avert federal shutdown in 2013.

Known as the Murray-Ryan deal, the law raised BCA caps for FY-14 and FY-15 in return for extending the imposition of the caps into 2022 and 2023 for a projected $23 billion long-term cut to the federal deficit.

Earnest said the White House continued to see the Murray-Ryan deal as the standard for a new compromise.

"We're hopeful Democrats and Republicans will pursue a similar template," he said.

By Courtney Albon
October 26, 2015 at 1:47 PM

A contingent of Colorado lawmakers sent a letter to top officials at the Defense Department and National Reconnaissance Office late last week in support of an effort to create a new interagency space operations center.

The letter, dated Oct. 22 and signed by Rep. Doug Lamborn (R-CO) as well as Sens. Cory Gardner (R-CO) and Michael Bennet (D-CO), calls the new Joint Interagency Combined Space Operations Center (JICSpOC) "a critical and much-needed step toward increased integration of our national security assets across these government entities."

"Given the increasing threats our nation faces, the need for these new capabilities could not be more urgent," the letter states. "We encourage you to make it your highest priority to develop and test these capabilities so that they will be delivered to the warfighter as quickly and affordably as possible."

The letter goes on to state that the lawmakers support the utilization of rapid acquisition authority and innovative commercial partnerships to address the "critical need."

DOD announced in September that it would stand up the JICSpOC at Schriever Air Force Base, CO, with an initial $16 million investment from the defense and intelligence communities. The center is meant to provide a backup capability to the Joint Space Operations Center, which is located at Vandenberg Air Force Base, CA. The backup capability should be operational in January 2017.

The move follows a strategic review designed to maintain U.S. technological superiority in space, outlined in a June 23 speech by Deputy Defense Secretary Bob Work.

By John Liang
October 26, 2015 at 12:06 PM
Defense Biz.

Posted this morning:

Unisys exec says company's commercial background helps in today's environment

As the Defense Department pushes for more innovative technology, the head of Unisys' defense and intelligence business says her company's heavy focus on the commercial sector gives it a leg up.

Ship Shape.

The Navy won't be able to finish up its Littoral Combat Ship strategy until the FY-16 budget is finalized:

LCS acquisition strategy won't be finalized until budget outlook clarifies

The Navy's plan for acquiring the last of its baseline Littoral Combat Ships will not be finalized until Congress reaches some sort of agreement on the fiscal year 2016 budget, according to the head of Naval Sea Systems Command.

Iron Dome.

The Army is looking at Israel's Iron Dome short-range missile defense system:

Army eyes Israel's Iron Dome interceptor for its base-protection system

The Army is slated to test next March the Israeli Tamir interceptor missile under an emerging U.S. program to protect outposts from aerial drones and cruise missiles, officials tell Inside the Army.

SOUTHCOM Budget.

The head of SOUTHCOM spoke with reporters last week:

Long-term CR could leave SOUTHCOM chief with 'less than nothing'

The head of U.S. Southern Command warned last week that a long-term continuing resolution would prove "catastrophic" for his domain.

Strategic Sourcing.

A new GAO report is out on strategic sourcing:

DOD: Army, Air Force analyses of IT services spending due next year

The Army and Air Force are beginning "in-depth" analyses of spending on information technology services so they can identify ways to meet their requirements with strategic sources, according to a top Pentagon official.

Document: GAO Report On Strategic Sourcing

Grab Bag.

The rest of the front page from this week's Inside the Army:

Army Reserve chief bristles at Guard's thrust to claim primary combat role

The chief of the Army Reserve has rejected a suggestion by National Guard Bureau Chief Gen. Frank Grass that the Guard be formally designated as the Army's primary combat reserve.

Army Commission to tee up acquisition-reform recommendations

Members of the National Commission on the Future of the Army last week indicated their upcoming report would touch on the well-trodden path of acquisition reform.

Bigger motor, punchier warhead sought in Army's new long-range missile

The Army believes a new program is needed for developing a missile that can travel 499 kilometers, just up to the limit of a landmark, Cold War-era arms control treaty.

By Marjorie Censer
October 26, 2015 at 10:49 AM

Investment firm Blackstone said today it has agreed to acquire MB Aerospace from private-equity firm Arlington Capital Partners.

MB Aerospace is an engine component manufacturer and repair company that works with customers from Pratt & Whitney to Boeing to the Pentagon.

The deal is expected to close later this year.

MB Aerospace has facilities in the United Kingdom, the United States and Poland.

By John Liang
October 26, 2015 at 10:48 AM

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

1. The chief of the Army Reserve has rejected a suggestion by National Guard Bureau Chief Gen. Frank Grass that the Guard be formally designated as the Army's primary combat reserve.

Full Story: Army Reserve chief bristles at Guard's thrust to claim primary combat role

2. Members of the National Commission on the Future of the Army last week indicated their upcoming report would touch on the well-trodden path of acquisition reform.

Full Story: Army Commission to tee up acquisition-reform recommendations

3. The Army believes a new program is needed for developing a missile that can travel 499 kilometers, just up to the limit of a landmark, Cold War-era arms control treaty.

Full Story: Bigger motor, punchier warhead sought in Army's new long-range missile

By Lee Hudson
October 26, 2015 at 10:42 AM

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

1. The Navy is making plans to release a request for proposals that will result in a $6 billion contract award for the Navy's top acquisition: the Ohio-class replacement program.

Full story: Navy making plans to release SSBN(X) RFP that will result in $6B contract

2. The Navy and Air Force are conducting a study about common components across the nuclear triad in order for the military to modernize the force while cutting cost, according to a senior Navy official.

Full story: Navy, Air Force conducting triad commonality study to cut costs

3. The lack of a fiscal year 2016 budget has not yet forced the Navy to revise the annual execution guidance it issues to the public shipyards, but a longer budget impasse may force the service to retool those planning documents.

Full story: No updated planning guidance sent to shipyards under short-term CR

By Tony Bertuca
October 26, 2015 at 7:00 AM

Congressional hearings this week are scheduled to feature Defense Secretary Ash Carter, Chairman of the Joint Chiefs Gen. Joseph Dunford, and several defense acquisition experts.

Meanwhile, the GOP is scheduled to elect a new House speaker to continue budget negotiations with the White House and the anti-spending wing of the party.

Tuesday

Carter and Dunford are scheduled to testify before the Senate Armed Services Committee.

Link: http://1.usa.gov/1PLTQxW

The House Armed Services Committee is skated  to hold a hearing with experts to discuss shortening the defense acquisition cycle.

Link: http://1.usa.gov/1OMNeQw

Textron and Orbital ATK report quarterly earnings.

Wednesday

Booz Allen Hamilton, General Dynamics, Northrop Grumman, NCI, CACI International and ManTech International announce their quarterly earnings.

Republicans are slated to nominate a new House speaker to succeed Rep. John Boehner (R-OH), who is planning to retire at the end of the month.

Thursday

The GOP is scheduled to elect a new House speaker.

The Defense Writers Group is scheduled to host Sen. Tim Kaine (D-VA).

Leidos and Oshkosh report quarterly earnings.

Friday

Rockwell Collins releases its quarterly earnings report.

By Marjorie Censer
October 23, 2015 at 4:39 PM

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

Agency: Army Contracting Command

Awardee: KF&S Corp.

Protester: C&S Corp.

What GAO found: C&S Corp. protested the award of a contract for security guard services to KF&S, arguing that the company's proposal should have been found unacceptable for failing to meet the corporate experience requirements. Additionally, C&S argues that KF&S used forged labor union documents, the GAO report says.

"C&S also challenges the veracity of statements made by the [contracting officer's representative] in response to the protest, which refute the protester’s allegations," the report says. "We view the protester’s argument in this regard as, in essence, alleging that the agency was motivated by bias or bad faith."

The GAO denied the protest, finding "that C&S has failed to produce credible evidence of bias or bad faith on the part of any agency officials."

The decision: http://www.gao.gov/assets/680/673315.pdf

By Tony Bertuca
October 23, 2015 at 3:08 PM

Defense Secretary Ash Carter said today he hopes President Obama's recent veto of the defense authorization bill will drive Congress to compromise on a multiyear budget deal for the federal government.

"I very much hope that it's possible for everybody to come together here and put us on a normal, multiyear budgeting horizon," he told reporters during a Pentagon press conference.

Obama yesterday made history when he vetoed the defense authorization bill for only the fifth time in more than 50 years, citing budget and policy concerns.

Republicans, meanwhile, argue that Obama has taken the authorization bill hostage in order to leverage the GOP's anti-spending wing into a larger budget compromise.

The House has scheduled a Nov. 5 vote to override the veto. House lawmakers initially voted 270-156 to pass the bill, which would not be enough to override the president. The Senate voted 70-27 to pass the bill, which is enough to override the veto.

By John Liang
October 23, 2015 at 12:24 PM

Today's recap includes news on the president's veto of the FY-16 defense policy bill and more.

Defense Veto.

The president yesterday did what he said he would do:

Obama vetoes defense bill as budget impasse grinds on

President Obama vetoed the defense authorization bill Thursday in the latest episode of the ongoing battle over the federal budget.

Combat Vehicle.

Don't expect the Army to start a new combat vehicle program anytime soon:

Key official sees new Army ground combat vehicle out of reach

The three-star general overseeing the Army's modernization programs reiterated on Thursday the service's stance that commencing a new ground combat vehicle acquisition is not in the cards financially, while acknowledging that budgetary pressures aren't expected to let up anytime soon.

Sub RFP.

An RFP for the Navy's Ohio-class submarine replacement program is due out soon:

Navy Making Plans To Release SSBN(X) RFP That Will Result In $6B Contract

The Navy is making plans to release a request for proposals that will result in a $6 billion contract award for the Navy's top acquisition priority: the Ohio-class replacement program, according to a service official.

Torpedoed.

A continuing resolution won't help the Navy's heavyweight torpedo restart program:

Navy's heavyweight torpedo restart 'next to impossible' to execute under CR

The Navy's heavyweight torpedo restart program is "next to impossible" for the service to execute under a continuing resolution, according to an official.

Nuke Modernization.

The head of U.S. Strategic Command wants nuclear modernization:

STRATCOM chief cagey on FY-17 nuclear modernization discussions

Adm. Cecil Haney, head of U.S. Strategic Command, is adamant that the nation needs to invest in nuclear modernization, but offered little insight into ongoing Defense Department efforts to address the massive bill headed for the Pentagon's strained budget.

Earnings.

Raytheon issued its quarterly earnings statement yesterday:

Raytheon reports improved sales, decreased profit

Raytheon said Thursday that sales in its most recent quarter grew nearly 6 percent to hit $5.8 billion.

Small Biz.

Harris Corp. is firming up its relationship with one particular small business:

As contractors look to small businesses, Harris embraces GovTact

As contractors zero in on partnering with small businesses, Harris is solidifying its relationship with small business Government Tactical Solutions, providing the company office space as part of a new mentor-protégé relationship.

By John Liang
October 23, 2015 at 11:48 AM

Highlights from this week's issue of Inside the Air Force:

1. The F-35 joint program office may have the option to initiate a block buy, even if the services are unable to invest until after fiscal year 2017.

Full Story: Air Force: F-35 JPO could initiate block buy without FY-17 investment

2. The Air Force Office of Transformational Innovation is leveraging parallel contracts for two battle management command-and-control platforms, the Compass Call and Joint Surveillance Target Attack Radar System, to explore a common business jet option.

Full Story: Air Force explores common business jet for JSTARS and Compass Call

3. The Air Force could save more than $100 million by pursuing a joint life-of-program buy with the Navy for new warhead fuzes, according to the materiel lead and program manager for the Air Force's Mk21 fuze modernization program.

Full Story: Common Air Force, Navy strategy would save $100M for ICBM

By Tony Bertuca
October 23, 2015 at 11:42 AM

Defense Secretary Ash Carter is scheduled to brief the Pentagon press corps today at 1:45 p.m., according to a Defense Department announcement.

Carter's briefing comes one day after Army Master Sgt. Joshua Wheeler became the first U.S. servicemember to die in Iraq since 2011 after taking part in a mission that rescued 70 hostages from a prison controlled by the Islamic State of Iraq and the Levant. Wheeler is also the first U.S. servicemember to be killed in action while supporting Operation Inherent Resolve.

The incident has spurred questions in that the Pentagon has avoided stating that Wheeler died in a "combat" mission. Rather, DOD is hewing closely to the message that the operation to free the hostages was part of the military's stated "advise and assist" mission in Iraq.

"I would not suggest you should look at this as some change in tactics on our part," Pentagon Press Secretary Peter Cook said yesterday. "This was a unique circumstance in which very close partners of the United States made a specific request for our assistance."