The Insider

By Marjorie Censer
July 15, 2015 at 4:51 PM

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

Agency: Air Force

Awardee: Mahto Construction

Protester: International Waste Industries

What GAO found: International Waste Industries protested the Air Force's award to Mahto for a solid waste incinerator at Wake Island, arguing the service improperly found its proposal technically unacceptable. IWI also claims the Air Force improperly had discussions with other vendors that it did not have with IWI.

The GAO concluded the Air Force did conduct discussions with Mahto, meaning it was required to conduct discussions with all other vendors, and sustained the protest. However, the incinerator has already been delivered and the vast majority of the contract work is already complete. Because termination of the contract is not feasible, the GAO recommended the Air Force reimburse IWI the cost of preparing its proposal and the cost of pursuing its protest.

The decision: http://www.gao.gov/assets/680/671439.pdf

By Marjorie Censer
July 15, 2015 at 3:25 PM

The Pentagon announced today that Arsenio Gumahad has been named deputy director for intelligence, surveillance and reconnaissance in the Defense Department's acquisition office. Gumahad previously served as chief executive of IC Vets.

Wendin Smith, the former vice president for strategic development at Scitor, has been named deputy assistant secretary of defense for countering weapons of mass destruction, while Christopher Maier, former senior adviser to the National Counterterrorism Center director, has been named deputy assistant secretary of defense for special operations and combating terrorism.

Andrew Exum, previously a management consultant at the Boston Consulting Group, has been appointed deputy assistant secretary of defense for Middle East policy, and Aaron Hughes, formerly vice president for intelligence community support at In-Q-Tel, has been appointed deputy assistant secretary of defense for cyber policy.

Additionally, Abraham Denmark, previously an executive at the National Bureau of Asian Research, has been picked to be deputy assistant secretary of defense for East Asia, and Maura Sullivan, formerly with the Department of Veterans Affairs, has been named assistant to the defense secretary for public affairs.

By Marjorie Censer
July 15, 2015 at 2:35 PM

ManTech International said today it has divested ManTech Cyber Solutions International, its commercial software division, to CounterTack.

Under the deal, ManTech will become an equity investor in CounterTack as well as a distribution partner. Bill Varner, president of ManTech's mission, cyber and intelligence solutions group, will join CounterTack's board as an observer.

By Courtney Albon
July 15, 2015 at 11:57 AM

The Air Force successfully launched its 10th Global Positioning System IIF satellite from Cape Canaveral Air Force Base in Florida.

The Boeing-built satellite lifted off at 11:36 a.m., the front end of its launch window. It flew on a United Launch Alliance Atlas V rocket.

The Air Force has just two more GPS IIF satellites in storage. The next will be launched in October and the last satellite next February.

Inside the Air Force reported last month that Senate appropriators are calling for two cost and requirements reviews of the next-generation GPS:

In the Senate Appropriations defense subcommittee's mark of the fiscal year 2016 defense spending bill, which the full committee approved June 11, lawmakers directed the cost assessment and program evaluation office and the Joint Requirements Oversight Council to "review the cost of and validate the requirements for" the Air Force's plan to accelerate the GPS III launch schedule. The panel is concerned that launching satellites too early could cause a capability gap if the new ground segment is not yet operational.

By Marjorie Censer
July 14, 2015 at 4:47 PM

The chief executive of aerospace and defense company AAR said this week the company is making progress reshaping as a services provider to the commercial aviation, government and defense markets.

As part of this effort, the company has sold its Telair Cargo Group and moved its precision systems manufacturing operations into discontinued operations. David Storch, AAR's chief executive, said in a company announcement that AAR has also streamlined its remaining services businesses and will now turn its attention to growing them.

In the fourth quarter, AAR reported sales of $415.8 million, down from $420.6 million in the same three-month period a year earlier. Quarterly profit hit $15.1 million, down from $17.1 million in the same quarter the prior year.

AAR has also grown its commercial work. While sales to commercial customers made up 57 percent of sales in the fourth quarter of 2014, these sales represented 65 percent in the most recent quarter.

By Marjorie Censer
July 14, 2015 at 4:21 PM

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

Agency: Defense Human Resource Activity

Awardee: Interactive Government Holdings

Protester: Task Source/Military Personnel Services Corp.

What GAO found: Task Source protested the award to IGH of a Defense Human Resource Activity contract for support staff services for its Family Employer Programs and Policy Office. The GAO notes DHRA originally awarded the deal to Task Source, but learned that one of the principals of Military Personnel Services Corp. -- with which Task Source had formed a joint venture -- had pleaded guilty to federal bribery charges and that another individual associated with MPSC had previously pleaded guilty to federal bribery charges. The agency terminated the contract and awarded it to IGH, according to GAO.

"Task Source argues that the agency’s actions were improper because it was unreasonable for the agency to have considered the two individuals that had pleaded guilty to federal bribery charges as 'principals' of MPSC," GAO writes. "Task Source also alleges that the agency’s actions were improper because MPSC had withdrawn from the joint venture."

However, GAO denied the protest.

The decision: http://www.gao.gov/assets/680/671403.pdf

By John Liang
July 14, 2015 at 3:59 PM

Aurora Flight Sciences announced this week that it had received confirmation that its Orion unmanned aerial vehicle had set a new world record for the longest flight by a remotely piloted aircraft.

The Orion flew for 80 hours, two minutes and 52 seconds on Dec. 5-8, 2014, according to a company statement, besting the previous 30-hour record set by a Global Hawk in 2001.

Company CEO John Langford said in statement:

"The U.S. military put the challenge to Aurora to develop a long-endurance unmanned system that far exceeded the capabilities of existing technologies. Obviously, when taxpayer dollars are invested, the goal is not only to see if a long-endurance flight can be achieved, but to ultimately deploy the system in support of the American warfighter."

By Tony Bertuca
July 14, 2015 at 2:34 PM

Defense Secretary Ash Carter is being dispatched to Israel by President Obama next week to reassure the Israelis of the United States' continued commitment to their security in wake of a historic nuclear agreement with Iran that has been denounced by Prime Minister Benjamin Netanyahu, according to a White House statement.

In a call with Netanyahu earlier today, Obama "noted that Secretary of Defense Ash Carter's visit next week to Israel is a reflection of the unprecedented level of security cooperation between the United States and Israel, and that the visit offers a further opportunity to continue our close consultation on security issues with Israeli counterparts as we remain vigilant in countering the Iranian regime's destabilizing activities in the region," according to a White House readout.

Though Carter released a statement praising the new deal with Iran, he asserted that the United states remained ready to defend its interests and those of its allies, noting that military options remain on the table to "check Iranian malign influence."

"The Department of Defense is today, and will always be ready, to defend the United States and our interests," Carter said. "Our military -- including tens of thousands of U.S. forces in the Middle East -- are full speed ahead maintaining a strong presence in the Gulf. We remain prepared and postured to bolster the security of our friends and allies in the region, including Israel; to defend against aggression; ensure freedom of navigation in the Gulf; and check Iranian malign influence. We will utilize the military option if necessary."

By Marjorie Censer
July 13, 2015 at 4:38 PM

Computer Sciences Corp., in the process of separating into two companies, said today Larry Prior, who heads CSC's North American public sector business, is expected to lead the new, U.S. public sector-focused company.

In May, CSC said it would divide into two public companies: one focused on U.S. public sector clients and another for commercial and global government clients.

The U.S. public sector company, mostly made up of the NPS business, will be called Computer Sciences Government Services. Prior is anticipated to be both president and chief executive of the new company, "pending approval of the new company's board of directors," CSC said.

Prior previously was an executive at BAE Systems, ManTech International and Science Applications International Corp.

By Tony Bertuca
July 13, 2015 at 4:03 PM

The week ahead features a high-profile nomination hearing and a think tank appearance by Sen. John McCain (R-AZ) likely to address lawmakers' ongoing work on the proposed National Defense Authorization Act and the Obama administration's veto threat.

Tuesday

The Senate Armed Services Committee is holding a hearing to consider Air Force Gen. Paul Selva's nomination to become the next vice chairman of the Joint Chiefs of Staff. Selva is the current chief of U.S. Transportation Command. The committee is also scheduled to consider Air Force Gen. Darren McDrew's nomination to succeed Selva at TRANSCOM.

Wednesday

McCain is scheduled to appear at the Heritage Foundation in Washington to discuss Pentagon budgets, reforms and the proposed NDAA.

The bill is scheduled to reach Obama's desk at the end of the month, but he has threatened to veto it unless the legislation lifts 2011 Budget Control Act spending caps for non-defense and defense priorities alike.

McCain is expected to depart after his remarks, but will be followed by a panel discussion featuring Todd Harrison, a defense budget analyst at the Center for Strategic and Budgetary Assessments; Roger Zakheim, a visiting fellow at the American Enterprise Institute; and John Bonsell, vice president for government affairs at Science Applications International Corp. The discussion will be moderated by Justin Johnson, senior policy analyst for defense budgeting policy at Heritage.

Friday

Alan Estevez, principal deputy under secretary of defense for acquisition, technology and logistics, is scheduled to appear at the Center for Strategic and International Studies on Friday to discuss defense acquisition reform.

Jacques Gansler, the former Pentagon acquisition chief who now serves as director for the Center for Public Policy and Private Enterprise at the University of Maryland, and retired General John P. Jumper, a former Air Force chief of staff and SAIC CEO, are also set to attend. The discussion will be moderated by Andrew Hunter, former director of the Pentagon's joint rapid acquisition cell who now runs the defense-industrial initiatives group at CSIS.

By Courtney Albon
July 13, 2015 at 2:52 PM

The Government Accountability Office issued a report today validating the Air Force's analysis and forward planning for the C-130.

The service in April sent Congress a report detailing its plans for recapitalizing and shifting units within its C-130 fleet. The Air Force report, which was directed by Congress in the Fiscal Year 2015 National Defense Authorization Act, highlights differences between the service's past force-structure plans and its current outlook.

GAO's July 13 report validates the service's analysis, stating that it met lawmakers' reporting requirements.

By Marjorie Censer
July 13, 2015 at 12:10 PM

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

Agency: Defense Logistics Agency

Awardee: Bremen-Bowdon Investment Co.

Protester: Omega Apparel

What GAO found: Omega Apparel filed a protest with the GAO over a DLA contract awarded to Bremen-Bowdon for Army men's dress trousers with braid. Though Omega had received a better evaluation, its price of $10.4 million was higher than Bremen-Bowdon's $8.6 million.

Omega argued its proposal should not have received the same past-performance rating as Bremen-Bowdon and contended DLA "essentially converted the best value competition set forth in the solicitation to a lowest-priced, technically-acceptable competition in order to award the contract to Bremen." GAO denied the protest.

By Marjorie Censer
July 13, 2015 at 11:15 AM

Cybersecurity and risk management company Delta Risk said today Scott Kaine has been named chief executive.

Delta Risk in April received an investment from private-equity backers affiliated with the Chertoff Group meant to strengthen the company's core business as well as speed up its growth.

Kaine joins Delta Risk from Cyveillance, a cyber intelligence business and wholly-owned subsidiary of QinetiQ. He was president at Cyveillance and also previously served as senior vice president of CA Technologies. A West Point graduate, he was an Army intelligence officer.

By Marjorie Censer
July 10, 2015 at 10:25 AM

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

Agency: Army Materiel Command

Awardee: AHR Metals

Protester: ThermoAir Spray Booths

What GAO found: ThermoAir Spray Booths protested its elimination from a competition for four spray/bake booths at Anniston Army Depot, arguing Army Materiel Command improperly ruled its quotation unacceptable and was biased against ThermoAir.

"ThermoAir appears to argue, at best, that the Army’s requirement that vendors provide all information required under the solicitation is evidence of bias, as the required information should have been 'evident,'" GAO writes. "The protester’s allegation fails to meet the high standard for demonstrating that an agency’s actions were tainted by bias." GAO denied the protest.

By Tony Bertuca
July 9, 2015 at 4:01 PM

The Senate announced today its list of lawmakers who will negotiate the proposed fiscal year 2016 National Defense Authorization Act with counterparts from the House.

The conferees are:

·John McCain (R-AZ), Chairman of the Senate Armed Services Committee

·Jim Inhofe (R-OK)

·Jeff Sessions (R-AL)

· Roger Wicker (R-MS)

·Kelly Ayotte (R-NH)

·Deb Fischer (R-NE)

·Tom Cotton (R-AR)

·Mike Rounds (R-SD)

·Lindsey Graham (R-SC)

·Jack Reed (D-RI), Ranking Member of the Senate Armed Services Committee

·Bill Nelson (D-FL)

·Joe Manchin (D-WV)

·Kirsten Gillibrand (D-NY)

·Joe Donnelly (D-IN)

·Mazie Hirono (D-HI)

·Tim Kaine (D-VA)

President Obama has threatened to veto any version of the bill that adheres to the GOP's budget blueprint, which calls for leaving sequestration spending caps for defense by increasing the Pentagon's overseas contingency operations account.