The Insider

The Chinese military last month conducted a non-intercept test of an anti-satellite missile system, according to the State Department's head of arms control, verification and compliance.

"Despite China's claims that this was not an ASAT test, let me assure you the United States has high confidence in its assessment, that the event was indeed an ASAT test," Frank Rose told attendees yesterday at the U.S. Strategic Command Deterrence Symposium in Omaha, NE.

Rose noted that China isn't the only country pursuing these capabilities, citing Director of National Intelligence James Clapper's testimony from a February congressional hearing (which was closed to the public, by the way) that Russia openly acknowledges it conducts ASAT research.

Rose added:

The United States believes that these activities, which include the continued development and testing of destructive anti-satellite systems, are both destabilizing and threaten the long-term security and sustainability of the outer space environment. A previous destructive test of the Chinese system in 2007 created thousands of pieces of debris, which continue to present an ongoing danger to the space systems -- as well as astronauts -- of all nations, including China.

Debris-generating ASAT weapons present a host of threats to the space environment that threaten all who benefit from outer space: the civil, commercial, military and scientific space endeavors of all nations. On the security side, ASAT weapons directly threaten individual satellites and the strategic and tactical information they provide, and their use could be escalatory in a crisis. They also present a threat to key assets used in arms control monitoring, command and control and attack warning. The destructive nature of debris-generating weapons has decades-long consequences as well: they can increase the potential for further collisions in the future, which only create more debris. A debris forming test or attack may only be minutes in duration, but the consequences can last decades threatening all space systems. It is for these reasons that the United States believes testing debris-generating ASAT systems threaten the security, economic well-being, and civil endeavors of all nations.

The Federal Aviation Administration plans to set up an unmanned aircraft systems center of excellence that would involve various government agencies -- including the Defense Department.

According to a solicitation posted this morning on the Federal Business Opportunities website, the goal "is to create a cost sharing relationship between academia, industry, and government that will focus on research areas of primary interest to the FAA and the U.S. unmanned aircraft systems community."

Our purpose is to forge a union of public sector (FAA, National Aeronautics and Space Administration, Department of Defense, state/local governments, etc.), private sector, and academic institutions to create a world-class consortium that will identify solutions for existing and anticipated UAS related issues. The FAA expects the COE to perform short- and long-term basic and applied research through a variety of analyses, development, and prototyping activities.

To this end, the FAA Centers of Excellence Program Office, ANG-E4, is soliciting proposals from accredited institutions of higher education with their partners and affiliates. The FAA intends to enter into cooperative agreements with core university members, and will award matching grants for public benefit. Initially, grants will be awarded to university members to establish the COE, define the research agenda, and begin UAS research, education, training and related activities.

As a result of this competitive process, the FAA also plans to award indefinite delivery indefinite quantity (IDIQ) contracts to the selected COE team members for the benefit of the government. Thereafter, the COE team will be positioned to receive delivery order tasks on a cost reimbursement, cost sharing, and/or fixed price basis.

Universities must notify FAA of their interest by Aug. 22, according to the notice.

Defense Secretary Chuck Hagel is in Australia today, where he spoke about the U.S. shift to the Asia Pacific:

Recently, for the first time, we have Marines on a rotational basis here in Australia; 1,200, I think, is what we currently have. We have LCS ship in, and we'll have more on a rotational basis in Singapore, which is -- is new.

We have just concluded new arrangements and agreements with the country the Philippines on a rotational basis to use bases there.

And I could go on, but I think it gives you some tangible answer to your question, "Are we committed or not?" Yes, we're committed. We will continue to stay committed.

But I might also add that it does not mean that the U.S. rebalance to the Asia Pacific -- and this is a dynamic process that the United States certainly has used over the years as geo-political interests shift in the world. And I think by any measurement, any metric applied to Asia Pacific -- Secretary Pritzker, Secretary Kerry were quite clear on this when they were in India about a week ago -- that the economic development and the emergence of an astounding number of middle class that -- and all the economic development productive parts of a society of a country that are emerging in this part of the world are pretty clear.

We have an interest here, the United States. We'll continue to have an interest here. We are a Pacific power. We've been a Pacific power. So we're not going anywhere, and our partnerships are here. Our treaty obligations here are important to us. The president has made that case.

This is my sixth trip to the Asia Pacific areas since I've been secretary of defense the last year and a half. I'll do four this calendar year. Secretary Kerry, Secretary Pritzker were just in India. As you know, Secretary Kerry was just in Myanmar yesterday.

So I think by any measurement of commitment, it's pretty clear that the U.S. is committed to this part of the world, but also does not mean a retreat from any other part of the world. We have interests all over the world. We'll continue to work with our partners and strengthen those partnerships and the alliances we have in every part of the world and here as well.

On missile defense cooperation with Australia, Hagel said:

We are going to talk tomorrow, as I noted, in our discussions with the Australians, regarding ballistic missile defense. These are conversations that we started prior. We talked a little bit in our meeting today, the two of us, about this issue. And we think there's great opportunity and possibilities as we go forward and develop some options.

The Defense Department had the highest compliance rate with a congressional past performance reporting requirement compared to other Cabinet agencies, according to a new Government Accountability Office report.

The GAO report, issued today, shows DOD having had an 83 percent compliance rate as of April 2014, up from 76 percent at the same time the previous year. The department with the next-highest compliance rate was Treasury, with 71 percent in April 2014 compared to 47 percent in 2013.

"Having complete, timely, and accurate information on contractor performance allows officials responsible for awarding new federal contracts to make informed decisions," the report reads. "Agencies generally are required to document contractor performance on contracts or orders exceeding certain dollar thresholds."

The fiscal year 2013 Defense Authorization Act "required the development of a strategy to ensure that timely, accurate, and complete information on contractor performance is included in past performance databases. The act also required a change to the timeframes allowed for contractors to provide comments, rebuttals, or additional information pertaining to past performance information," according to GAO.

The head of the Commerce Department's Bureau of Industry and Security recently expressed hope that the Obama administration will publish by the end of the year the next two proposed rules in its export control reform initiative, covering toxins and guidance equipment such as night-vision goggles, Inside U.S. Trade reports this week:

Speaking to reporters at the bureau's annual Update Conference on July 29, BIS Undersecretary Eric Hirschhorn acknowledged that revising these two categories will "not be easy," which is why the administration first moved ahead with less difficult categories in its export control reform.

The reform effort involves moving items from the U.S. Munitions List (USML) to the less stringent controls of the Commerce Control List (CCL). The two upcoming rules would involve USML Categories XII and XIV, which cover guidance equipment and toxicological agents, respectively.

BIS officials have previously said the toxins category is difficult because it involves getting input from government scientists, who are not usually involved in export control debates. Private-sector sources have said Category XII will be difficult in part because the Department of Defense will likely take a hard line on protecting night vision equipment, which it views as vital to the strategic capabilities of the U.S. military.

But Hirschhorn expressed confidence that the agencies involved in the reform would ultimately be able to come to an agreement on these two categories. "I have a pretty high level of confidence both that [on the night-vision goggles] category and the toxins category … we'll reach a very sensible resolution for both, and I hope they will be published both before the end of the year," he said.

Inside the Pentagon reported last month that the Commerce Department has processed more than $900 million worth of exports that have been deregulated off the State Department's Munitions List since Oct. 15, 2013.

Additionally, the State and Commerce Departments are working on rules to ease restrictions on the export of sensors, night vision items, biological items and toxins, ITP reported:

Export reform "addresses today's national security threats and opportunities," said Eric Hirschhorn, undersecretary for industry and security at the Commerce Department, in a National Defense Industry Association webinar.

"Reform of the system will focus our limited resources within the government on the threats that matter the most, improve our interoperability with our closest friends and allies, strengthen the U.S. defense industrial base by reducing incentives for foreign manufacturers to design-out controlled U.S. origin parts and components and finally ease the licensing burden on U.S. exports," he said.

President Obama announced the Export Control Reform Initiative in 2009 to ease restrictions on military items that had been needlessly held to Cold War regulation standards. The plan moves items from the strict U.S. Munitions List to the more relaxed Commerce Control List.

So far, the Bureau of Industry and Security has processed more than 5,000 munitions licenses. The president's initiative aims to move 21 categories from the Munitions List. The categories represent about $80 billion in annual exports and close to 90 percent of the total value of American exports governed by licenses.

General Dynamics Land Systems-Canada announced on July 24 that the Peruvian government had awarded the company a $67 million contract to equip Peruvian Marines with Light Armored Vehicles.

Peru bought 32 of the LAV II personnel variant vehicles with amphibious capability. Included in the contract is a complete logistics support package. Deliveries will begin by mid-2015, the statement reads.

"We are proud to have been selected by the Peruvian Marines to meet their armoured vehicle requirement and look forward to establishing a long-term relationship with this very important customer," Danny Deep, GDLS-Canada vice president said in a statement.

In May, GDLS-Canada was awarded a $52 million contract modification for LAV mobility and obsolescence upgrade integration, Inside the Navy reported that month.

Upgrades for the LAV include a power pack with increased power, an upgraded driveline, steering and suspension to allow for additional payload and height management system, and upgraded electrical components including a redesigned driver's instrument panel, company spokesman Ken Yamashita wrote in a May 20 email.

The Senate this morning passed by unanimous consent a bill that would provide $225 million for the Pentagon to replenish Israel's Iron Dome rocket-defense system.

Senate Appropriations Committee Chairwoman Barbara Mikulski (D-MD) said in a statement:

"It's right that we help our friends in Israel and adopt the Reid-McConnell-Mikulski amendment to replenish Iron Dome. It's crucial that Israel has the opportunity to defend itself while others are working on ceasefires or political solutions. As a treasured ally, it's important that we enable Israel to guard themselves against Hamas.

"Israel is under attack, and it's under attack by a terrorist group that denies its very right to exist. And it's under attack by an organization called Hamas that is sending thousands of rockets toward Israeli cities and towns, targeting innocent civilians. The most crucial of short-range missiles is a technology called Iron Dome.

"I am committed to the protection of Israel and I am more committed to the Iron Dome than ever. Iron Dome is a high-tech defensive system. It's not an offensive system. Israeli citizens are being bombarded with missile after missile. The money that we've approved today is needed to replace interceptor rockets for the critical Iron Dome missile defense system. Iron Dome is already saving lives and protecting towns and cities from the more than 2,700 rockets fired by Hamas in the last few weeks. Israel is an essential American ally and needs these assets to defend itself. By investing in this program, we are protecting civilians and helping to maintain Israel's qualitative military edge."