The Insider

Northrop Promotes Two
By Marjorie Censer
May 20, 2015 at 12:42 PM

Northrop Grumman announced today it has named Sonal Deshpande vice president of mission assurance in its electronic systems sector and Steve Lunny vice president and program manager for its information systems sector's ISR division.

Deshpande, who joined Northrop in 1986, most recently served as vice president for engineering, manufacturing and logistics for the contractor's airborne ISR and targeting systems and space ISR systems divisions. She has also served as director of the Cobra Judy replacement program, vice president of logistics services in the electronic systems sector and vice president of advanced maritime and IAMD systems.

Lunny previously worked as deputy program manager for advanced mission programs in the space systems division of Northrop's aerospace systems business.

WH: Climate Change Poses National Security Threat
By Marjorie Censer
May 20, 2015 at 10:52 AM

President Obama will warn that climate change poses a threat to national security during the commencement address he'll deliver today at the U.S. Coast Guard Academy.

The White House has also released a new report on climate change's national security implications and said the Pentagon is evaluating the vulnerability of its bases, installations and other facilities. The Defense Department is also weighing the implications of growing demand for the National Guard during extreme weather.

"I am here today to say that climate change constitutes a serious threat to global security, an immediate risk to our national security, and, make no mistake, it will impact how our military defends our country," Obama's prepared remarks say. "And so we need to act -- and we need to act now."

Obama is set to also note that climate change "poses a threat to the readiness of our forces.

"Many of our military installations are on the coast, including, of course, our Coast Guard stations," the prepared remarks say. "Around Norfolk, high tides and storms increasingly flood parts of our Navy base and an air base. In Alaska, thawing permafrost is damaging military facilities. Out West, deeper droughts and longer wildfires could threaten training areas our troops depend on."

THAAD To Korea?
By John Liang
May 19, 2015 at 6:59 PM

Despite recent press speculation that a Terminal High Attitude Area Defense system could be deployed to South Korea, no final decision has yet been made, according to a senior State Department official.

"I will underscore although we are considering the permanent stationing of a THAAD unit on the Peninsula, we have not made a final decision, and we have had no formal consultations with the Republic of Korea on THAAD deployment," Assistant Secretary of State for Arms Control, Verification and Compliance Frank Rose said in a May 19 speech in Washington, adding: "To be clear, THAAD is a purely defensive system that would improve our ability to intercept short- and medium-range ballistic missiles from North Korea. It does not and cannot impact broader strategic stability with Russia and China."

Rose did note that the United States deploys Patriot Advanced Capability-3 batteries in South Korea to defend U.S. and South Korean forces. Further, "South Korea is taking steps to enhance its own air and missile defense systems, which include sea-and land-based sensors, and upgrading its Patriot PAC-2 batteries to the PAC-3 system. Additionally, the U.S. Department of Defense continues to consult with South Korea about how it can improve its missile defense capabilities as part of an Alliance response to the growing North Korean missile threat."

3D Systems, Navy Team Up
By Marjorie Censer
May 18, 2015 at 11:35 AM

3D Systems announced today it has inked a cooperative research and development agreement with Naval Sea Systems Command's Naval Surface Warfare Center Carderock Division to develop and evaluate 3D printing technology for military uses.

The agreement, the company said, will help the two jointly assess technology and materials meant to "ensure appropriate adoption of this technology within the Navy supply chain."

House Passes Defense Policy Bill
By John Liang
May 15, 2015 at 1:27 PM

The full House passed the fiscal year 2016 defense authorization bill today by a 269-151 vote.

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

I want to thank all of the Members who worked so hard and contributed so much to this product. The important reforms to the acquisition process, workforce management, and troop benefits could not have happened without contributions from across this chamber. I especially want to thank those members who contributed to this bill and voted for final passage. We have never before faced such a diverse array of serious threats. To meet them, we must preserve our agility while we recruit and retain the very best. This bill is an important step in that direction.

GD's Flynn To Retire
By Marjorie Censer
May 15, 2015 at 11:15 AM

General Dynamics said today that Larry Flynn, president of Gulfstream Aerospace, will retire on June 30 for health reasons. Mark Burns, president of product support for Gulfstream, has been named the new president.

Burns took over the product support group in 2008. He joined Gulfstream in 1983 and has also served as vice president of customer support and vice president of completions engineering.

Additionally, Joseph Lombardo, who heads the contractor's aerospace group, is retiring at the end of the June, General Dynamics said. The aerospace group's companies will report directly to Phebe Novakovic, GD's chief executive.

Lab Day
By Jordana Mishory
May 14, 2015 at 4:06 PM

The Pentagon seeks to develop a stronger connection between the requirements and technology personnel, acquisition chief Frank Kendall told reporters Thursday.

In an aim to enhance that connection, the Defense Department held its first ever "lab day" on May 14, in which dozens of DOD lab projects were showcased in the Pentagon courtyard.

During the event's opening ceremonies, Deputy Defense Secretary Bob Work noted that the United States does not have a global monopoly on technology.

"Technological superiority is not an American birthright. We assume it. We have assumed it since World War II, but it is under threat," he said. "We have to work every day to keep it."

"And so that's why these types of . . . demonstrations really jazz me up because it makes me confident that we will be able to do so," Work added.

Kendall reiterated that idea when he spoke to reporters, noting that defense officials have to work harder at achieving superiority than they have over the past few decades.

The event follows closely with Work and Kendall's push to reinvigorate DOD's focus on technological superiority for 21st century conflicts.

New Army Chief
By Sebastian Sprenger
May 13, 2015 at 2:06 PM

Army Forces Command chief Gen. Mark Milley is in line to become the service's next chief of staff, Defense Secretary Ashton Carter announced today.

Gen. Raymond Odierno, whose term as the top Army general expires later this summer, praised the selection in a statement, describing Milley as a "phenomenal leader."

If confirmed by the Senate, Milley will take a helm at a critical time, as the Army, along with the rest of the military, could face spending cuts. In addition, he would have to deal with the fallout from the congressionally mandated Commission on the Future of the Army, which will deliver its recommendations to lawmakers and the White House early next year.

Carter Appoints Richardson As CNO
By Lee Hudson
May 13, 2015 at 2:02 PM

In an unprecedented move, Defense Secretary Ash Carter has nominated a submariner, Adm. John Richardson, to succeed another member of the "silent service" as the 31st chief of naval operations.

Richardson currently serves as the naval nuclear propulsion program director. He also led the 2014 investigation of the service's Naval Nuclear Power School cheating scandal when 34 sailors were expelled.

If approved by Congress, Richardson would succeed another fellow submariner, Adm. Jonathan Greenert, and take the helm at the time the service wants to fund the multibillion-dollar Ohio-class replacement ballistic missile submarine program.

Kratos Review Underway
By Marjorie Censer
May 13, 2015 at 12:03 PM

Kratos Defense and Security Solutions said last week a strategic review of its business should be complete by the end of June.

Last year, the contractor announced its board retained an investment banking firm "to assist it in formally reviewing its businesses, markets and competitive positioning and to evaluate strategic alternatives, including the potential divestment of certain of its non-core businesses."

During a call with analysts last week, Eric DeMarco, Kratos' chief executive, said the company expects to share the review's findings at the end of its second quarter.

Due to that review, "Kratos' executives remain in a window where we cannot purchase or trade in Kratos stock," he added.

In the first quarter, Kratos reported sales declined nearly 9 percent to hit $182.5 million. The contractor reported a quarterly loss of $16.3 million, similar to the loss it reported in the same period the prior year.

Quarterly sales in its government solutions business were flat, but declined in Kratos' unmanned solutions group. That unit reported a loss for the three-month period.

Kratos executives said the company has been making significant cost cuts, including personnel reductions. DeMarco said Kratos will "continue to aggressively manage our cost structure."

HII Appoints Two VPs
By Marjorie Censer
May 12, 2015 at 2:45 PM

Huntington Ingalls Industries said today it has named George Jones vice president of operations at Ingalls Shipbuilding and Tim Farrell vice president of new Navy programs at Ingalls Shipbuilding.

Jones joined Ingalls in 1984 as an apprentice and has since served in multiple roles, including, most recently, director of production for all new ship construction programs.

Farrell most recently served as vice president of operations.

Engility Posts Loss
By Marjorie Censer
May 11, 2015 at 5:14 PM

Engility said today sales grew in its most recent quarter, following the acquisition of TASC in late February, but the company suffered a loss for the three-month period.

The contractor reported quarterly sales of $402.6 million for the three-month period that ended March 31, up from $338.8 million in the same quarter last year. However, the company lost $13.4 million, down from the $8.9 million in profit it earned in the same quarter in 2014.

Engility said the quarter included one month of TASC sales and $28 million in acquisition-related costs.

Tony Smeraglinolo, Engility's chief executive, told analysts during a conference call this afternoon that TASC is contributing to what he described as an "expanded pipeline" of new business opportunities.

However, he said, Engility remains "guarded on the macro environment."

"We continue to experience industry headwinds," he said, citing the lengthy wait for contracts to be awarded. "Despite these headwinds, we continue to believe 2015 will be the year of stabilization for our business."

Transition Begins
By Lee Hudson
May 11, 2015 at 12:00 PM

Navy personnel may begin transitioning from Blackberry devices to Apple smartphones and tablets on the service's network, according to a recent announcement.

Navy-Marine Corps Intranet users can use iPhone 5, iPhone 6 and iPhone 6 Plus smartphones as well as iPad Air and iPad Air 2 tablets with the system's email, according to a May 11 service statement.

NMCI has the capacity to support 15,000 iPhone/iPad users anywhere in the continental United States and Hawaii and plans to increase the capacity to 30,000 personnel by the end of the summer.

"The addition of Android smartphones and tablets, and the ability to edit documents are planned for later this year," the statement reads.

DynCorp Parent Reports Loss
By Marjorie Censer
May 8, 2015 at 11:01 AM

Delta Tucker Holdings, the parent company of DynCorp International, reported today that sales in its most recent quarter fell about 24 percent to hit $467 million.

The company attributed the decline to "the continued drawdown of U.S. forces in Afghanistan, reduced service needs in Iraq and delays in new business awards."

Delta Tucker also reported a loss for the quarter of $14.8 million, higher than the $766,000 loss the company reported in the same period the prior year.

DynCorp's DynAviation business reported quarterly sales of $309.9 million, up slightly from sales in the same period last year. However, the DynLogistics business saw revenue plummet to $156.4 million, down from $317.2 million in the same quarter in 2014.

Vectrus Sales, Profit Decline
By Marjorie Censer
May 7, 2015 at 10:55 AM

Vectrus, the contractor spun off from Exelis last year, announced Wednesday that sales in its most recent quarter fell 14.2 percent to reach $260.9 million.

Profit fell more steeply, dropping 56 percent to hit nearly $5 million, according to the company.

Vectrus said Afghanistan-based programs contributed $43.6 million of revenue in the quarter, down about $37 million from the same period the prior year. The company said the declines "were partially offset by an increase in our core business revenue, which we believe signifies stabilization of the core business."