The Insider

By Marjorie Censer
April 2, 2015 at 10:42 AM

CACI International this week acquired LTC Engineering Associates, which specializes in technical engineering for defense and intelligence agencies.

The deal -- the terms of which were not disclosed -- is meant to expand CACI's work in C4ISR, intelligence and cybersecurity and will add about 50 employees.

LTC, headquartered in Florida, posted sales of $16 million in 2014.

By Marjorie Censer
April 2, 2015 at 10:39 AM

United Technologies said today it has named Robert Leduc, who retired in 2014, president of Sikorsky Aircraft. Mick Maurer, the previous president, has been named UTC senior vice president for strategic projects.

Before he retired, Leduc spent 35 years at UTC, holding leadership roles at Pratt & Whitney, Hamilton Sundstrand and UTC Aerospace Systems.

In his new position, Maurer will work with Mike Dumais, senior vice president for strategic planning at UTC, to complete the strategic alternatives review for Sikorsky.

By John Liang
April 1, 2015 at 12:16 PM

The Missile Defense Agency and the Israel Missile Defense Organization recently completed the third series of intercept tests -- labeled DST-3 -- of the David's Sling Weapon System, according to a joint statement released this morning.

"DST-3 is the third series of tests of the Stunner Interceptor for the David's Sling Weapon System," the statement reads, adding: "The information collected is being analyzed by program engineers and will be used for ongoing development and fielding of the David's Sling Weapon System."

While no information was provided as to how many targets were launched and how many were successfully intercepted, the statement did say all test objectives were achieved.

"This test series is a major milestone in the development of the David's Sling Weapon and provides confidence in future Israeli capabilities to defend against the developing threat," according to the statement.

Israeli contractor Rafael is the prime contractor for the David's Weapon System Program, with Raytheon as a subcontractor. Israel Aircraft Industries subsidiary Elta developed the Multi-Mission Radar, and Elbit subsidiary Elsra developed the Battle Management Center.

By Marjorie Censer
April 1, 2015 at 10:46 AM

Centerra Group said today it has acquired Gregg Protection Services, which specializes in protecting nuclear and biological assets.

Gregg, which counts the Energy Department and national laboratories among its customers, is Centerra's first acquisition. Centerra was created after G4S Government Solutions was sold to private-equity firm Alvarez & Marsal Capital Partners late last year. The company was originally founded as Wackenhut Services in 1960, later merged with G4S and became G4S Government Solutions in 2011.

By John Liang
March 31, 2015 at 4:36 PM

President Obama has decided to allow the stalled deliveries to Egypt of military aircraft, missiles, and tank kits to go ahead, according to a White House statement issued today.

The president spoke with Egyptian President Abdelfattah al-Sisi "regarding the U.S.-Egyptian military assistance relationship and regional developments, including in Libya and Yemen," the "read-out" of their conversation states, adding: "President Obama informed President al-Sisi that he will lift executive holds that have been in place since October 2013 on the delivery of F-16 aircraft, Harpoon missiles, and M1A1 tank kits. The President also advised President al-Sisi that he will continue to request an annual $1.3 billion in military assistance for Egypt."

Beginning in fiscal year 2018, the United States will channel security assistance for Egypt to four categories -- counterterrorism, border security, Sinai security, and maritime security -- and for sustainment of weapons systems already in that country's arsenal, according to the statement.

Further:

The President explained that these and other steps will help refine our military assistance relationship so that it is better positioned to address the shared challenges to U.S. and Egyptian interests in an unstable region, consistent with the longstanding strategic partnership between our two countries. President Obama also reiterated U.S. concerns about Egypt's continued imprisonment of non-violent activists and mass trials. He encouraged increased respect for freedom of speech and assembly and emphasized that these issues remain a focus for the United States. The two leaders agreed to stay in touch in the weeks and months ahead.

House Armed Services Committee Chairman Mac Thornberry (R-TX) said in a statement:

We encourage the government of Egypt to continue its democratic process. But Egypt is also a strong regional ally. Maintaining that relationship must be a priority for the U.S. Providing them with the means to protect Egyptians and Americans from the threat of terrorism is the right thing to do.

By Marjorie Censer
March 31, 2015 at 3:30 PM

SRA International said today it has signed an agreement to buy part of the government services business of Qbase, specializing in IT support and professional services.

The assets SRA bought focus on helping the government in the areas of healthcare, homeland security and law enforcement. Under the deal, SRA adds about 230 employees.

Terms of the deal were not disclosed, and the transaction is expected to close in April.

By Marjorie Censer
March 31, 2015 at 1:34 PM

Northrop Grumman made its expansion into New Zealand official this week during a ceremony in Wellington, the company said.

The contractor is partnering with local companies, including Electrotech in navigation systems and DataCom in information and communications technology.

The move follows Northrop's acquisition of two Australian companies, M5 Network Security in 2012 and Qantas Defense Services in early 2014. The contractor said the buys have quickly expanded Northrop's presence in Australia.

"Northrop Grumman has made the decision to invest in this region for the long term," Ian Irving, chief executive of Northrop Grumman Australia, said in the company announcement.

By Marjorie Censer
March 30, 2015 at 2:50 PM

Northrop Grumman said today it has realigned its intelligence, surveillance, reconnaissance and targeting systems division to expand its focus on airborne and space ISR.

The unit is being split into two businesses: airborne intelligence, surveillance, reconnaissance and targeting systems and space intelligence, surveillance and reconnaissance systems.

The company said the change will better position Northrop for growth in airborne and space ISR work. It comes after the company broke ground last year on a new, $20 million Maryland Space Assembly and Test facility in Linthicum, MD.

Northrop said Joseph Ensor, who joined the contractor in 1979 and most recently was general manager of the ISR and targeting systems unit, has been named general manager of the space ISR systems business. Michael Hinkey, who joined Northrop in 1981 and most recently served as general manager of engineering, manufacturing and logistics, has been tapped to lead the airborne ISR and targeting systems division.

By Marjorie Censer
March 27, 2015 at 12:59 PM

Raytheon said today that its United Kingdom subsidiary has settled with the British Home Office, ending a years-long dispute over a contract termination.

The settlement includes a cash payment of £150 million -- or nearly $225 million -- to Raytheon Systems Limited, as the subsidiary is known, Raytheon said today.

The dispute stems from a 2010 termination of RSL's eBorders contract, which provided electronic border security.

"To avoid further uncertainty and the expense of more protracted litigation, and to strengthen their important customer relationship with the British Government, Raytheon and RSL have decided to put this matter behind them," Raytheon said today.

By John Liang
March 27, 2015 at 11:47 AM

The Senate has confirmed Maj. Gen. Timothy Kadavy to become the next director of the Army National Guard.

Retired Maj. Gen. Gus Hargett, president of the National Guard Association of the United States, said in a statement released this morning that while Maj. Gen. Judd Lyons "has done a good job under trying circumstances over the last 14 months as the acting director of the Army National Guard . . . today's challenges require a director who is allowed to develop and implement a vision for the force.

"General Kadavy, a former adjutant general and veteran of the wars in Iraq and Afghanistan, is the right leader with the right experience at the right time for the Army National Guard. And he will have the authority to move our force forward," Harget continued, adding: "We are elated with his confirmation and we look forward to working with him to make even better the most experienced and best trained and equipped Army National Guard in history."

By Marjorie Censer
March 26, 2015 at 12:34 PM

TransDigm Group, which designs and produces commercial and military aircraft components, said today it has completed its $725 million cash acquisition of the Telair Cargo Group from AAR Corp.

Telair specializes in on-board cargo loading and handling, restraint systems and unit load devices for commercial and military platforms, TransDigm said, and is expected to produce sales of about $300 million this fiscal year, which ends in May.

By John Liang
March 26, 2015 at 11:13 AM

The Pentagon today issued the official announcement establishing the congressionally mandated Commission on the Future of the United States Army, according to a Federal Register notice:

The Commission is a non-discretionary Federal advisory committee that shall undertake a comprehensive study of the structure of the Army, and policy assumptions related to the size and force mixture of the Army, in order (a) to make an assessment of the size and force structure of the active component of the Army and the reserve components of the Army; and (b) to make recommendations on the modifications, if any, of the structure of the Army related to current and anticipated mission requirements for the Army at acceptable levels of national risk and in a manner consistent with available resources and anticipated future resources. The Commission shall also conduct a study of a transfer of Army National Guard AH-64 Apache aircraft from the Army National Guard to the regular Army.

Last week, the Obama administration and congressional leaders announced their commissioner choices.

According to the legislation, the commissioners should have experience in national security matters and, specifically, in "reserve forces policy." The panel's prescribed duties are heavily focused on finding a mix between the active and reserve component that would yield maximum capability at minimum cost. Behind the benign-sounding objective is a plethora of contested questions about how capabilities are measured and costs counted on both sides. As Inside the Army reported last December:

Perhaps in a telling show of hands by lawmakers is a requirement that commissioners study maintaining the reserve components "as an operational reserve in order to maintain as much as possible the level of expertise and experience developed since Sept. 11, 2011."

That position is not shared by all in the active Army, with some arguing that keeping the reserves at the same readiness level as they were during the Iraq and Afghanistan wars is neither necessary nor affordable. Reserve advocates, meanwhile, contend that cost savings lie in reducing the active component while boosting the Guard and Reserve.

"Commissions of this nature, in general, are sympathetic to the Guard arguments and positions -- just like politicians," said Mackenzie Eaglen of the conservative American Enterprise Institute. "I would expect they will come out favorable to the Guard position without entirely endorsing it or recommending total abolition of the restructure."

The term "restructure" alludes to an Army initiative to concentrate all Apache attack helicopters in the active component. The plan envisions transferring Apaches from the reserves beginning in FY-16. The reserve units would receive Black Hawks in return.

Eaglen said politics likely will be a major roadblock for the expert panel's work. "The commissioners will be lobbied hard by all parties but most earnestly by the National Guard proponents and supporters," she said. "They will have to work to stay impartial and keep emotions out of it."

The National Guard Association, for its part, expressed hope in its statement that open-mindedness among panelists would prevail over component-level politics. The lobbyists also are "confident that eight objective individuals will see Army National Guard capabilities and cost-effectiveness as a major solution to the defense and security challenges ahead."

The commission is required to submit a report to lawmakers no later than Feb. 1, 2016.

By John Liang
March 25, 2015 at 3:09 PM

Pentagon Comptroller Michael McCord is calling on the service comptrollers and agency heads to submit their fiscal year 2015 omnibus reprogramming requirements by May 15.

"Your submission must identify sources to offset the requested increases," McCord writes in a March 23 memo, adding: "In order to ensure the full consideration of your requests, your explanations for both increases and decreases need to be informative of the programmatic adjustment, concise and net to zero. Thorough justifications will expedite the review of your proposals by this office and the congressional committees. Each requirement must explain the need for additional funding and the impact to the program if funds are not provided. Each source must explain why funds are available and the impact on the program."

By Marjorie Censer
March 23, 2015 at 1:49 PM

CNA Corp. has named Katherine McGrady president and chief executive, the board of the nonprofit research organization said today.

McGrady had been serving as acting president of the Center for Naval Analyses, CNA Corp. said, and she replaces Robert Murray. The transition date will be announced later, according to the organization. CNA Corp. also includes the Institute for Public Research.

McGrady joined CNA Corp. as an analyst in 1988 and was named its first chief operating officer in 2009.

By James Drew
March 20, 2015 at 11:33 AM

Northrop Grumman has become the third major defense contractor to sign an enterprise-level, public-private partnership agreement with the Air Force Sustainment Center after Lockheed Martin in 2014 and Boeing the year before.

The sustainment center is comprised of air logistics complexes at Tinker Air Force Base, OK, Hill Air Force Base, UT, and Robins Air Force Base, GA, that maintain and support the service's aircraft fleets and weapons. The partnership sets pre-negotiated terms and conditions for Northrop support at all three installations.

The deals with Northrop, Lockheed and Boeing are a departure from the old way of doing business, where each air logistics complex would negotiate its own contractor terms and conditions.

"This partnership enables us not only to improve efficiency and reduce the cost of operations, but it also allows the Air Force to grow its organic capability, while leveraging capabilities across the industrial complex to provide world-class sustainment support to the warfighter," AFSC Commander Lt. Gen. Bruce Litchfield said in a March 20 Northrop statement.