The Insider

Lockheed Names New CTO
By Marjorie Censer
February 18, 2015 at 4:21 PM

Keoki Jackson has been named Lockheed Martin's chief technology officer, the contractor said Wednesday.

Lockheed also announced that Rod Makoske has been named senior vice president for corporate engineering, technology and operations.

Jackson has been with Lockheed since 1997. Makoske, who has worked at the contractor for 27 years, most recently served as vice president of technical operations in Lockheed's mission systems and training business.

Lockheed held a media event on the same day, in which CEO Marillyn Hewson said the company plans to significantly boost its focus on international sales.

Deloitte: Defense Decline
By Marjorie Censer
February 18, 2015 at 4:17 PM

Global defense spending is expected to decline about 1.3 percent in 2015 because of U.S. military spending cuts, according to Deloitte's global aerospace and defense industry outlook, released Wednesday.

Overall, the report predicts 3 percent growth in the global aerospace and defense industry, thanks to the commercial aerospace sector.

The commercial aerospace business is expected to see nearly 8 percent growth in 2015, the report forecasts, as demand rises.

UTC Hires McBride
By Marjorie Censer
February 18, 2015 at 4:16 PM

Timothy McBride will become United Technologies Corp.'s senior vice president for government relations, starting March 2, the company said Wednesday.

McBride is to succeed Gregg Ward, who will retire later this year. McBride, who will report directly to UTC's chief executive, will lead the company's federal, state and international government relations efforts.

He comes to UTC from Covidien, a health care company, and has worked at DaimlerChrysler, Freddie Mac and Sunoco.

Dentons Expands National Security Team
By Marjorie Censer
February 17, 2015 at 2:24 PM

Law firm Dentons said today it had hired Giovanna Cinelli and Kenneth Nunnenkamp as partners in its U.S. export controls and national security practice.

Both will be based in a new office in Tysons Corner, VA.

The hires are part of a larger effort to bolster Dentons' work in aerospace, defense and technology, the firm said, noting that it also recently added Elizabeth Evans, Deepak Reddy and Del Smith to its aviation practice.

Cinelli specializes in export and government regulatory issues for defense and technology companies and is chairwoman of Women in Aerospace. Nunnenkamp focuses on trade and national security issues and previously served in the Marine Corps as a JAG officer.

Command Change
By Courtney Albon
February 13, 2015 at 2:47 PM

The chief of Air Force Materiel Command Gen. Janet Wolfenbarger announced her retirement today at an Air Force Association conference in Orlando, FL.

Wolfenbarger confirmed her plans to retire while speaking as part of a panel of four-star Air Force generals. Multiple news outlets are reporting that the general will be replaced by Lt. Gen. Ellen Pawlikowski, the former head of the Air Force Space and Missile Systems Center and currently the military deputy in the office of the assistant secretary of the Air Force for acquisition. Of note, Wolfenbarger served in Pawlikowski's position just before taking over the AFMC command post.

Wolfenbarger moved into her current position in June 2012, and her career includes lead positions on the F-22 fighter, B-2 bomber and C-17 airlifter programs.

Hagel -- Out
By Tony Bertuca
February 13, 2015 at 12:48 PM

Outgoing Defense Secretary Chuck Hagel released a farewell message to the "men and women of the Department of Defense" in what is likely his last day at the Pentagon before Ashton Carter is sworn in to succeed him on Tuesday:

As I leave office, I am immensely proud of what we have accomplished together over the past two years.

We have responsibly ended our combat operations in Afghanistan and begun the follow-on mission to preserve our achievements there.

We have bolstered enduring alliances and strengthened emerging partnerships, while successfully responding to crises around the world.

We have launched vital reforms that will prepare this institution for the challenges of the future.

We have fought hard - and made real progress - against the scourge of sexual assault in our ranks.

And after 13 years of war, we have worked to restore our military readiness and ease the burdens on our people and their families.

Through it all, many of you, and your families, coped with shutdowns and furloughs; weathered hiring and pay freezes; and endured long hours and longer deployments. You did so because we each took an oath to defend our nation, our fellow citizens, and our way of life. And you have lived up to your word.

But as you know well, the world is still too dangerous, and threats too numerous. I know you will remain vigilant, continuing your important work under the leadership of Ash Carter.

A special note to our men and women in uniform: of all the many opportunities my life has given me, I am most proud of having once been a soldier. The lessons from my time in uniform about trust, responsibility, duty, judgment, and loyalty - I have carried these with me throughout my life. As your secretary of defense, I have seen those same traits in each of you.

Whether you serve in uniform or as a civilian, you are the reason why our military is the finest in the world and the most admired and most trusted institution in America. Nothing has clarified my thinking, nothing has renewed my hope, and nothing has made me prouder than getting to know, work, and serve with so many of you who have put the nation's interest above your own.

If I had any parting guidance, it would be the same reminder that my drill sergeant, Sgt. 1st Class William Joyce, gave to me after I finished basic training in 1967: "People depend on you. They'll always depend on you."

That was true for me then, and it is true for all of you today. People depend on you - America depends on you - to live up to your oath, to conduct yourselves in keeping with our highest standards, and to perform as the greatest military the world has ever known. After two years serving with you, I am confident you will continue to do so.

You and your families have my deepest gratitude and admiration.

Thank you for your unflagging service and your commitment to this country. May God bless America and each and every one of you.

GD Promotes Flynn
By Marjorie Censer
February 13, 2015 at 11:09 AM

Larry Flynn, president of Gulfstream Aerospace, is set to succeed Joseph Lombardo as executive vice president of General Dynamics' aerospace group as of July 1, the contractor announced today.

Lombardo is set to retire. Mark Burns, president of product support for Gulfstream, will succeed Flynn.

Flynn was named president of Gulfstream in 2011. He also previously served as senior vice president of marketing and sales and president of product support.

Carter Confirmed
By John Liang
February 12, 2015 at 3:11 PM

The full Senate today confirmed Ashton Carter to be the next defense secretary by a 93-5 vote.

Senate Armed Services Committee Ranking Member Jack Reed (D-RI) said in a statement:

I congratulate and welcome Ash Carter as our new Secretary of Defense. Today, the United States Senate gave Secretary Carter a strong, bipartisan vote of confidence. He is an experienced, effective leader.

Secretary Carter takes the helm of the Pentagon at a time when we face critical national security and budgetary challenges. He should hit the ground running as he is well aware and deeply immersed in many of the significant challenges facing this nation and the Defense Department.

Now that he has been confirmed by the full Senate, I look forward to him having a cooperative and consultative relationship with Congress as we work together to strengthen our Armed Forces and alliances, and better align our resources with the important national security challenges ahead.

I also salute outgoing Secretary of Defense Hagel for his leadership at the Pentagon. Chuck is a great person and a dear friend, and I thank him for his boundless commitment to our service men and women.

NCI Boosts Profits
By Marjorie Censer
February 11, 2015 at 4:42 PM

NCI reported today that revenue fell but profit grew in its most recent quarter.

The contractor said sales for the three-month period ended Dec. 31 fell to $74.4 million, down about 7 percent from the same period a year earlier. However, NCI reported quarterly profit of $2.4 million, up from $2 million the prior year.

NCI attributed the sales decline to its PEO Soldier and NETCOM programs. Its PEO soldier contract accounted for just over 10 percent of the company's quarterly revenue, down from over 13 percent in the same period the previous year.

Boeing Creates New Group
By Marjorie Censer
February 11, 2015 at 10:25 AM

Boeing is consolidating the management of key programs, including the KC-46 aerial refueling tanker and the presidential aircraft, to ensure it stays on schedule and budget, the company said today.

Boeing said the new group, dubbed Boeing Defense, Space Development or BDS Development, is modeled on a similar organization within its commercial airplane business. The new organization will take on six programs to start: tanker, presidential aircraft, CST-100 spacecraft for NASA's Commercial Crew program, NASA's Space Launch System rocket, 502 small satellite effort and BDS work on Boeing's 777x commercial airplane.

Jim O'Neill, formerly president of the BDS global services and support business, will lead the new organization. Leanne Caret, chief financial officer of BDS, will take over as president of the global services and support unit.

Chris Chadwick, chief executive of Boeing's defense business, said in a company announcement that he expects customers to see "step-function improvements in affordability and schedule performance" as a result of the change.

Landing Pad
By Courtney Albon
February 10, 2015 at 3:16 PM

The Air Force announced today that it has entered into a five-year agreement with SpaceX that will allow the company to lease existing launch space to create the first-ever landing pad for its reusable Falcon-9 first-stage rocket boosters.

In a Feb. 10 press release, the service states that the agreement will support the company's renovation of an existing launch pad at Cape Canaveral Air Force Station, FL, to support its testing of a reusable booster. The launch pad has previously been used for missile tests.

SpaceX has been testing its reusable launch system since 2012, and is slated for its next test flight tonight from Cape Canaveral Air Force Station. In April 2014, the company achieved the first successful controlled landing of a rocket stage in the ocean. A test flight last month attempting a landing on a floating platform was unsuccessful.

SpaceX has yet to recover a reusable rocket.

Raytheon Reaper Sensors
By James Drew
February 9, 2015 at 11:45 AM

The Air Force intends to place an order with Raytheon for up to 49 high-definition multispectral targeting systems for the MQ-9 Reaper, according to a Feb. 3 notice on the Federal Business Opportunities website.

The order would satisfy planned Multi-Spectral Targeting System-B procurement for fiscal year 2015.

The notice did not indicate when the award is due, or its value.

Air Force Materiel Command's medium-altitude unmanned aircraft system division has been working on an improved version of the nose-mounted surveillance and targeting pod. The new units produce HD full-motion video and have improved targeting capabilities.

According to the notice, the order would provide up to 49 turret unit, turret containers, high-definition electronics units and containers, and spare parts.

Netherlands Reaper Sale
By James Drew
February 9, 2015 at 10:59 AM

The State Department has cleared the sale of remotely piloted MQ-9 Reaper reconnaissance aircraft to the Netherlands, according to a Feb. 6 Defense Security Cooperation Agency notice.

The Dutch government selected the General Atomics Reaper in 2013 and the Royal Netherlands Air Force is well advanced in its preparations to accept the aircraft into its inventory.

The notice states the deal is worth $339 million for four Block 5 aircraft and four mobile ground control stations. The notice does not indicate whether the aircraft will be armed or used for surveillance purposes only, but there are no munitions sales attached to the purchase.

"This potential sale will enhance the intelligence, surveillance and reconnaissance capability of the Dutch military in support of national, NATO, U.N.-mandated, and other coalition operations," the document states. "Commonality of ISR capabilities will greatly increase interoperability between U.S and Dutch military and peacekeeping forces."

The MQ-9 package includes six Honeywell turboprop engines and six multispectral targeting systems, according to DSCA.

The Netherlands is a signatory to the Missile Technology Control Regime, which places certain restrictions on the export of unmanned aircraft of the Reaper's size and rage.

The Reaper sale is the fourth to a European nation, according to the MQ-9 program's latest selected acquisition report. The United Kingdom purchased 11 MQ-9s from 2007-2011. Italy has six and France has two.

First Norwegian F-35 Due This Fall
By James Drew
February 6, 2015 at 10:58 AM

The first Norwegian F-35 Joint Strike Fighter is scheduled for delivery this fall, with the aircraft designated AM-1 entering the final stages of the manufacturing process at Lockheed Martin's production facility in Fort Worth, TX, according to a Feb. 6 Norwegian Ministry of Defense press statement provided by the prime contractor.

Norway's current program of record would purchase 52 conventional takeoff and landing F-35s to eventually replace its F-16 fleet.

AM-1 is part of low-rate initial production Lot 7, which involves the purchase of 29 Joint Strike Fighters for the United States and a total of six jets for international partners Italy, Norway and the United Kingdom.

Norway's aerospace industry builds a variety of components for the F-35, including Kongsberg Defence Systems' Joint Strike Missile that will be carried externally on the aircraft's wings and inside the bomb bay.

"Together with the Norwegian-developed Joint Strike Missile the F-35 will be one of the core capabilities of our future defense structure, representing a significant increase in our combat capabilities," MOD State Secretary Øystein Bø said in the statement.

Norway's first JSF order was placed in 2012.

Sikorsky Looks Ahead
By Marjorie Censer
February 5, 2015 at 3:57 PM

After winning several major program contracts last year year, including the Combat Rescue Helicopter and the presidential helicopter, Sikorsky is seeing "much more certainty 20 years out than there is in the next five years," according to one company executive.

Samir Mehta, president of defense systems and services at Sikorsky, told reporters at a roundtable today that its recent wins are still in the developmental phase.

"The good news is we've won those programs, and that's what creates the confidence that far out," he said. But in "current production programs, we still see a lot of pressure associated with budgets to be able to buy existing programs."

He noted that Sikorsky's MH-60S and MH-60R are both going out of production. "That's creating potentially a dip in the next few years," Mehta said.

"We have to make sure that we do enough in the short-term with our production side so that we bridge the gap to when these programs go into production," he said.

Mehta added that Sikorsky fared well in the fiscal year 2016 budget released this week.

"The [president's budget] had some stability in it for us as it relates to '16," he said. "The problem is every year is a reset . . . While it's helpful, [it] doesn't necessarily go and allow you to do long-term planning when it comes to people, your supply chain."