The Insider

Better Buying Brief
By
June 12, 2014 at 4:26 PM

The Pentagon's top acquisition official and his Navy counterpart will brief reporters on Friday about Better Buying Power and related initiatives.

Under Secretary of Defense for Acquisition, Technology and Logistics Frank Kendall and Assistant Secretary of the Navy for Research, Development and Acquisition Sean Stackley will hold the briefing, the Pentagon said in a statement.

“Topics will focus on the second annual Performance of the Defense Acquisition System Report, a Better Buying Power update and the Superior Supplier Incentive Program,” the statement reads.

More GMD Money?
By John Liang
June 12, 2014 at 4:18 PM

During a June 11 Senate Appropriations defense subcommittee hearing on the Missile Defense Agency's fiscal year 2015 budget request, Sen. Lisa Murkowski (R-AK) asked MDA Director Vice Adm. James Syring about the agency's planned Ground-based Midcourse Defense intercept test scheduled for this month:

MURKOWSKI: The recommendation for the GMD testing -- you're coming out of the various committees here in the Senate -- have recommended additional funding for maintenance and reliability upgrades that are not included in your FY '15 budget request. It appears, looking at what these -- what the various committees have advanced that the amount needed to address the maintenance and the reliability concerns is in the range of $30 [million] to $50 million.

Based on your assessment of what needs to happen with the maintenance and the reliability requirements, how much additional funding do you actually think you need in the FY '15 to make sure that we are to that point, that we can ascertain that we have what we need for the maintenance and reliability?

SYRING: I would -- I would answer it in two ways, ma'am. Inwardly, within the agency, there's amounts that can be made available through below-threshold reprogramming in FY '14, and we're certainly actively pursuing that within my authority.

The other part would be to work through the department on a request above the budget request and to gain acceptance and really concurrence on the needed and necessary improvements in the program. And I'm working that today with the department.

MURKOWSKI: OK, well, Mr. Chairman, I've requested an additional $250 million in the appropriations request that I had advanced for additional GMD upgrades. You know, certainly that is higher than we're talking about here, and I recognize, given the budget environment -- certainly willing to work to scale that back, but I do think that it is necessary to work to maintain the reliability of this system. So as we look to determine what that right number is, I would hope that we would have a good discussion on that.

Murkowski's recommendation came in a May 2 letter to subcommittee Chairman Dick Durbin (D-IL) and Ranking Member Thad Cochran (R-MS), where she wrote:

I fully support robust funding for Missile Defense Agency Ground-based Midcourse Defense and continued improvement of the exoatmospheric kill vehicle. In this age of global instability and emergence of numerous potential adversaries, strong, reliable homeland missile defense is an absolutely critical element of deterrence to aggressors and assurance for American citizens.

Iron Dome Funding
By John Liang
June 12, 2014 at 3:20 PM

Inside Missile Defense reports this week that House appropriators, in their version of the fiscal year 2015 spending bill marked up on June 10, proposed nearly doubling the Missile Defense Agency's request for the Iron Dome rocket-defense program in FY-15, but with caveats:

In its report accompanying the bill, the committee states it "understands that there is a signed agreement between the Israeli and United States governments concerning the procurement of the Iron Dome system and the necessity for producing various components of the system in the United States. The Committee is also aware that the Missile Defense Agency (MDA) and the Israeli Missile Defense Organization (IMDO) formerly agreed to the United States providing $680 million between fiscal years 2012 and 2015 for the Iron Dome program."

The appropriators state they are "concerned that the agreement does not cover the full amount that is recommended for fiscal year 2015. Given the significant American investment in this system, the Committee believes that co-production of parts and components should be accomplished in a way that will maximize American industry participation in interceptor and battery deliveries for Israel's defense needs."

Consequently, the appropriators' bill would prohibit the MDA director from spending $175 million of the appropriated amount until the Israeli government "submits a sufficiently detailed cost and schedule justification" to the agency director for his approval. That justification needs to "include a detailed timeline for obligation and expenditure of program funds received above the budget request for each fiscal year for which funds were appropriated; copies of signed and ratified contracts, sub-contracts, and teaming arrangements between Israeli and American industry for all Iron Dome co-production efforts; delivery to MDA of all technical data packages as accepted by American industry suppliers for co-production; and a common cost model of Iron Dome components, to be jointly developed and agreed upon by MDA and IMDO that includes recurring and non-recurring engineering costs, estimates for future buys, and actual costs beginning with fiscal year 2013, the required quantities for all components through fiscal year 2019, and component lead-times and delivery schedules," according to the legislation.

During a June 11 hearing on MDA's FY-15 budget request, Senate Appropriations defense subcommittee Chairman Sen. Dick Durbin (D-IL) asked agency Director Vice Adm. James Syring about Iron Dome:

DURBIN: The program has been very successful against rockets launched from Gaza toward Israel and was developed and fielded in record time.

Can you give us an update on the production timeline for additional batteries and interceptors? And what role is there for U.S. industry to contribute to this program?

SYRING: Sir, I'm very pleased -- I know you know this -- that we've signed a coproduction agreement with Israel back in March, which would give 30 percent of the stated Iron Dome production in the first year to the United States and 55 percent in the second year.

The request this year is for $175 million so there would be a significant amount of U.S. work shared to help our Israeli partners produce and field the Iron Dome interceptors. I would defer on the number of batteries and the number of interceptors to a classified forum as they protect that information. But with the coproduction agreement and with the ongoing contract negotiations that are going on between the U.S. company and the Israeli company, we will work through those details together to come up with the right cost model and the right -- the overall price to the government of Israel.

ASB Meeting
By John Liang
June 11, 2014 at 3:32 PM

The Army Science Board will hold a meeting next month to discuss three studies on missile defense, expeditionary maneuver and "talent management," according to a notice posted in today's Federal Register:

Purpose of Meeting: The purpose of the meeting is for ASB members to review, deliberate, and vote on the findings and recommendations presented in the Fiscal Year (FY) 2014 studies.

Agenda: The board will present findings and recommendations for deliberation and vote on the following three FY 2014 studies:

Air and Missile Defense Electronic Warfare (EW) Assessment -- This study will assist the Army by conducting a comprehensive assessment of the EW posture of the Army's Air and Missile Defense systems and their ability to operate in an advanced EW environment.

Decisive Army Strategic and Expeditionary Maneuver -- This study will identify challenges in 2025 that effect the Army's ability to conduct strategic and expeditionary maneuver; explore options in joint air- and sea-basing, commercial capabilities and partnering opportunities to improve the Army's ability to maneuver; and identify technologies and other innovations that could improve the Army's strategic and expeditionary maneuver capabilities.

Talent Management and the Next Training Revolution -- This study will develop a concept of talent management that the Army should use to describe individuals and teams through 2030; examine current technologies and trends employed in talent management, to include recruiting, training, and retention; and develop a roadmap for the employment of promising talent management systems, associated technologies, and best practices, taking into consideration the unique nature of military service.

The meeting will take place on July 16 in Colorado Springs, CO, according to the notice.

The ASB's most recent study looked at the Army's ability to maintain technological dominance on a global scale, Inside the Army reported in March:

In a March 4 memo, the ASB writes that it has reviewed the results of a Proctor & Gamble study titled, "Creating an Innovative Culture in the Army." The study, which addresses "the issue of innovation in the Army in the context of developing creativity, flexibility, and adaptability," finds that the service needs to "discover new means to maintain technological superiority in the world," according to the ASB.

To maintain this superiority, the study concludes that "an Army-wide campaign needs to be conducted that will be driven by experimentation theory and leveraging new industry practices," the ASB writes. This technological edge "translates to wartime capabilities across the spectrum and domains of warfare," the board adds.

"The study further shows Army senior leaders need to be the driving force to generate a sense of urgency for new adaptive principles that will solicit such ideas," the board writes. "By leveraging industry tools and soliciting other innovative engagement tools, the Army can develop its own framework to take advantage of such practices and valuable lessons learned."

Combined Chiefs' Confab
By John Liang
June 10, 2014 at 6:57 PM

The chiefs of staff of the United States and Great Britain met this week for the first time since the 1940s, according to a British defense ministry statement:

The Combined Chiefs of Staff (CCS) from the US and the UK met today, 10 June, to discuss the long-term strategic challenges that their respective armed forces can expect to face together in the future.

General Martin E Dempsey, Chairman of the Joint Chiefs of Staff, and the heads of the US Army, Navy, Marine Corps and Air Force, met with General Sir Nicholas Houghton, UK Chief of the Defence Staff, and UK service chiefs.

The senior military leaders were greeted by an guard of honour provided by Number 7 Company of the Coldstream Guards and the Band of the Welsh Guards, before attending the annual UK-US CCS conference at defence headquarters in Whitehall.

Topics discussed included how to continue the successful collaboration between their respective armed forces once the drawdown from Afghanistan has been completed and the importance of the transatlantic security alliance in advance of September's NATO Summit.

The bilateral military relationship between the UK and US is based on a long, shared history which has seen both forces routinely involved in combat operations together, more prominently over the last decade. This meeting reinforces the close alliance between the two countries' armed forces.

General Dempsey said:

We share a remarkably close relationship; not just as nations but as militaries. It’s one founded on our history, our values and genuine friendships. Whether we’re deployed in combat operations or in London addressing common priorities, our combined strength and experience make us better.

General Houghton added:

This important meeting of the Combined UK and US Chiefs of Staff comes at a significant time for both our militaries as we transition beyond combat operations in Afghanistan and reconfigure for emerging challenges. Discussions today have reflected the enduring and historic links between our two armed forces and underlined the closeness and strength of our military relationship.

The Combined Chiefs of Staff met regularly during World War Two between 1942 and the end of the conflict, but also convened in 1948 in response to the Berlin blockade, according to the ministry.

Full House
By Tony Bertuca
June 10, 2014 at 4:24 PM

The House Appropriations Committee has marked up its version of the fiscal year 2015 defense spending bill and will report the legislation to the full House.

In the most significant acquisition news from today's hearing on the bill, the committee voted against a proposed amendment by Rep. Jack Kingston (R-GA), who sought to prevent the scheduled retirement of the Air Force's A-10 aircraft by transferring nearly $340 million from the service's operations and maintenance accounts to pay for it. The measure was defeated 13-23.

Lawmakers also noted their frustration that the Defense Department has yet to submit a final request for overseas contingency operations funds.

Rep. Peter Visclosky (D-IN) said the lack of an OCO budget put the appropriators in a "very difficult position." He also took the Obama administration to task for providing too few details on an announced $5 billion counterterrorism effort and $1 billion European Reassurance Initiative that would be funded through OCO. The congressman called the plan "muddled."

Defense budget analysts who spoke to Inside the Pentagon last week were also skeptical:

Most experts estimate that the supplemental budget, known as the overseas contingency operations (OCO) fund, will be somewhere between $50 billion and $70 billion when it is finally submitted this summer, though Congress is operating with a $79 billion place-holder.

However, Todd Harrison, an analyst with the Center for Strategic and Budgetary Assessments, told Inside the Pentagon that Obama's new $6 billion initiatives will surely complicate matters, especially if they become long-term priorities (as they appear to be) and not one-time costs.

"It does push the OCO budget higher than I was expecting," he told ITP in a June 4 email. "If these funding streams last for more than a couple of years, then they will need to migrate to the base budget. But that could be after this administration is gone."

The issue is especially complex since Congress must approve the new funds and it has become increasingly opposed to vague piles of money, Harrison explained.

"Congress will certainly have a say in this, and I fully expect it to make changes to what the president is requesting," he wrote. "But in the end, I think these two initiatives will make it into the budget in some form. Supplemental budget requests like the OCO budget don't come with multiyear projections. They are proposed and funded one year at a time, so all I expect to see is FY-15 funding for now. However, I do expect that these are intended to be ongoing initiatives that will show up in future OCO requests."

CENTCOM HQ Funding
By John Liang
June 9, 2014 at 7:46 PM

A new Government Accountability Office report recommends that U.S. Central Command be given guidance on shifting its headquarters funding from overseas contingency operations to the base budget:

As DOD's headquarters reduction efforts continue and contingency operations in Afghanistan wind down, the department has recognized that CENTCOM and its service components' have enduring headquarters costs that are expected to continue after ongoing operations end, but the majority of the costs to operate and support CENTCOM, two of its service component commands, and its theater special operations command headquarters are funded with overseas contingency operations appropriations. For example, CENTCOM's Marine Corps service component command funded $34 million out of a total of $42 million in headquarters costs in fiscal year 2013 with overseas contingency operations appropriations. CENTCOM and its components have determined some of these costs are enduring and expected to continue after the end of contingency operations, such as for Isa Air Base in Bahrain, but the military services have not transitioned or developed a time frame to transition these enduring costs to DOD's base budget.

Acquisition Reform
By John Liang
June 6, 2014 at 8:41 PM

Shay Assad, the Pentagon's director of defense pricing, said recently that as the department eyes the next iteration of its "Better Buying Power" acquisition reform effort, defense officials must continue to focus on improving the acquisition workforce to support that reform. As Inside the Pentagon reported last month:

Improving the quality of the defense acquisition workforce -- although positive strides have been made -- remains the department's biggest single challenge in this reform arena, Assad told Inside the Pentagon in a May 22 interview.

"We've got a very capable and competent workforce, but to do the kinds of things that we want to do it takes a really well-trained professional workforce to accomplish that kind of work," Assad said, noting the department's Defense Acquisition Workforce Development Fund plays an important role in helping to improve on the training of the workforce. The fund was established in 2008 to help rebuild the defense acquisition workforce.

Although he declined to provide details on what Better Buying Power 3.0 might include, Assad stressed that workforce is an area that must be touched upon. He noted that the reform initiative is all about common sense, and he does not expect to see any major changes from the arenas previously introduced.

That same week, the Congressional Research Service issued a pair of reports on the Defense Department's acquisition process.

A May 23 report, "Defense Acquisitions: How DOD Acquires Weapon Systems," is an updated version of a primer issued on Jan. 2, 2013. This year's report has a slightly more detailed paragraph in the executive summary about oversight issues for lawmakers:

An oversight issue for Congress is the extent to which the Weapon Systems Acquisition Reform Act and the various DOD initiatives are having a positive effect on acquisitions, and what additional steps, if any, Congress can take to further the effort to improve defense acquisitions.

A separate May 23 CRS report more specifically deals with defense acquisition reform and the DOD workforce:

Oversight issues for Congress include the extent to which the Weapon System Acquisition Reform Act of 2009 (P.L. 111-23) and the various DOD initiatives are having a positive effect on acquisitions, whether current reform efforts are sufficient to address concerns related to the acquisition workforce, and what additional steps, if any, Congress can take to further the effort to improve defense acquisitions.

CRS does not publicly release its reports. Both of the above were originally obtained by Secrecy News.

Denied C4ISR
By John Liang
June 6, 2014 at 7:37 PM

Secrecy News recently obtained a Defense Department report to Congress that discusses "the readiness of the joint force to conduct operations" in a C4ISR-denied environment.

The unclassified portion of the February 2014 report -- obtained via a Freedom of Information Act request -- answers several questions from lawmakers as mandated by the fiscal year 2013 Defense Authorization Act. One of those questions touched on the changes to tactics, techniques and procedures developed to support denied environment operations:

(U) The [chairman of the Joint Chiefs of Staff] has directed all the CCDRs to execute exercises in realistic environments, including denied environments. Scope and impact of these objectives continue to mature over time, with annual reports on exercise effectiveness, lessons learned, and recommendations for future exercises. All of these activities feed directly into TTP development and refinement.

(U) The [defense secretary], through the CJCS, has tasked the Combatant Commanders (CCDRs) and Services in a separate EXORD to provide a detailed denied cyber assessment in the Spring of 2014, therefore this report does not cover cyber vulnerabilities of C4ISR.

Inside the Pentagon reported last September that denied or contested environments had emerged as a major challenge in unmanned ISR:

The Pentagon must rescope its intelligence, surveillance and reconnaissance assets to operate in contested and access-denial environments of the future as opposed to the more permissive airspace of today, according to a senior Defense Department official.

Filling this capability gap caused by an increasingly diverse and changing threat environment is one of the largest challenges the department is facing in the unmanned and ISR arena, Dyke Weatherington, DOD's director of unmanned warfare and ISR, said in a Sept. 24 interview. Most of the capability the department acquired in the past decade was optimized for a very permissive environment and would not be successful in a more contested arena, he said.

And prior to the counterterrorism activities of the past decade, the department's main adversary was the Soviet Union, which was a large but understandable threat.

"We knew what those guys were," Weatherington said of the Soviet Union. "We knew where their strengths were, we knew where their weaknesses were, and so we could go build systems for that particular capability."

And although the Pentagon was not prepared for the terrorism threat, it spent years building up ISR capabilities to respond to it.

EP-3E Letter
By John Liang
June 5, 2014 at 9:13 PM

Inside the Pentagon reported last month on a Defense Department letter to Congress about funding for the EP-3E Airborne Reconnaissance Integrated Electronic System II and Special Projects Aircraft platform:

A March 12 letter sent to the Senate by James Winnefeld, the vice chairman of the Joint Chiefs of Staff, and Michael Vickers, under secretary of defense for intelligence, states that budget factors also affect vital technology development of new and updated sensors to support MQ-4C and P-8 QRC capabilities, which are "key to [the] Navy's plan for meeting the intent of the FY-11 [Defense Authorization Act]."

Even with the budgeting issues, the Navy is still maintaining and sustaining the EP-3E, according to the letter.

The letter notes that despite provided capabilities through a "family of systems," the Navy projects a reduced capacity for the spy planes from fiscal year 2016 through FY-20 as "a result of the planned transition from the legacy capability to new systems." The family of systems refers to six manned and unmanned aircraft platforms designated to serve as replacements for the EP-3 in 2012.

We can now share that letter. Click here to read it.

Fewer Deputies
By John Liang
June 5, 2014 at 7:45 PM

Inside the Pentagon reports this morning on a Defense Department effort to reduce the number of deputy under secretaries of defense by rearranging elements of the policy shop. The story cites a recent DOD report to Congress:

The April 22 report signed by Defense Secretary Chuck Hagel lays out the department's plans to realign the organizational structure of the Office of the Secretary of Defense to eliminate, combine or re-designate five remaining non presidentially appointed, Senate-confirmed deputy under secretaries of defense. These positions include the deputy under secretary of defense for strategy, plans and forces in the policy shop; the deputy under secretary of defense for installations and environment in the acquisition shop; and three positions within the intelligence shop, the report states.

As part of the plan to eliminate the strategy, plans and forces post, the Pentagon aims to realign the Western hemisphere policy functions from the assistant secretary of defense for homeland defense to the international security affairs official. "This reduces the number of policy offices with a distinct international/geographic focus to two," the assistant secretary of defense for Asian and Pacific security affairs, and the international security affairs position, the report states.

In addition, the department aims to move cyber, space and countering weapons of mass destruction policy functions from the global strategic affairs post to the homeland defense position -- a decision that "aligns and creates integration between civil support, continuity, cyber, space, and countering WMD policy within the overall [homeland defense] portfolio," the report states. The department would then stand down the global strategic affairs post.

New Commandant
By John Liang
June 5, 2014 at 3:09 PM

President Obama has nominated Marine Corps Gen. Joseph Dunford to become the service's next commandant, according to a Pentagon statement issued this morning.

Dunford would replace current Commandant Gen. James Amos.

Dunford is serving as head of the International Security Assistance Force in Afghanistan, and is also commander of U.S. Forces in Afghanistan.

Dunford was the Marine Corps' assistant commandant from October 2010 to December 2012, according to his official biography.

State Grants
By John Liang
June 4, 2014 at 3:42 PM

The Defense Department is giving Michigan, Ohio and Indiana a helping hand in the wake of reduced military spending in those states.

According to a statement issued this morning, "community economic adjustment" grants from the Office of Economic Adjustment (OEA) have been awarded to a consortium of universities representing those states "to provide on-call technical assistance to communities and small- and medium-size companies impacted by the current defense procurement drawdown." The statement continues:

The University of Michigan's Institute for Research on Labor, Employment, and the Economy, in partnership with Ohio State University and Purdue University, was awarded a $2,479,069 grant for a regional Defense Manufacturing Assistance Program. These federal funds are part of a larger $2,777,257 project that will, among other activities, assist impacted companies across Michigan, Indiana, and Ohio to find new markets, support business stabilization, and implement diversification strategies. This project builds off of a proven model developed during the Great Recession to assist communities and businesses impacted by layoffs across the auto industry and its supply chain. Since 2012, defense manufacturers in these three states have announced over 3,900 layoffs.

The grant is awarded under OEA's Defense Industry Adjustment Program to assist states and communities that have been significantly impacted by reductions or cancellations in DoD spending. States and communities can request OEA assistance to: organize themselves to respond on behalf of affected communities, workers, and businesses; plan local community and economic adjustment activities to lessen local economic impacts; and, carry-out plans to replace lost economic activity. OEA project managers work with impacted areas to coordinate a broader program of assistance from across the federal government when necessary. Strategic regional initiatives will leverage cutting edge skills and technology to attract new investments, helping to preserve industrial base capacity even as defense spending declines. Proposals are considered for funding on a rolling basis and are subject to the availability of appropriations.

European Reassurance Initiative
By John Liang
June 3, 2014 at 4:17 PM

While visiting Poland this week, President Obama announced a new "European Reassurance Initiative" to bolster the security of the United States' NATO allies in Europe. According to Obama's remarks to reporters in Warsaw this morning:

Under this effort, and with the support of Congress, the United States will pre-position more equipment in Europe. We will be expanding our exercises and training with allies to increase the readiness of our forces. And I know President Komorowski is a great champion of the effort to modernize the Polish military and we welcome the announcement that he just made about an even greater commitment.

We'll increase the number of American personnel -- Army and Air Force units -- continuously rotating through allied countries in Central and Eastern Europe. And we will be stepping up our partnerships with friends like Ukraine, Moldova and Georgia as they provide for their own defense. I'm calling on Congress to approve up to $1 billion to support this effort, which will be a powerful demonstration of America's unshakeable commitment to our NATO allies.

Poland, to its credit, is a leader in the alliance when it comes to investing in our collective defense. We've seen that again today. Poland's resolve -- and the initiative I'm proposing today -- is a reminder that every ally needs to carry their share and truly invest in the capabilities of the alliance that are needed for the future.

To view a White House fact sheet on the initiative, click here.

New NGA Director
By John Liang
June 2, 2014 at 2:39 PM

Robert Cardillo will become the next director of the National Geospatial-Intelligence Agency, the Pentagon announced this morning.

Director Letitia Long will retire later this year after four years at the helm, according to the Defense Department statement:

"Tish Long and Robert Cardillo both have led the transformation of intelligence to address the complex global strategic challenges we face as a nation. They both have ensured intelligence is relevant to the needs of its important customers – from the president to the warfighter. I congratulate Tish on her successful tenure and very much look forward to having Robert's leadership and talent for the important work ahead at NGA,"said Dr. Mike Vickers, under secretary of defense for intelligence.

Long took the reins at NGA in August 2010. Under her leadership, the agency has shifted from providing static products, such as maps, to providing geospatial intelligence services that enable users to access information that provides "time and place" context in a variety of formats, in real time, for users on all security domains. The agency has developed the initial launch of its "Map of the World," which for the first time presents an integrated view of collection assets from across the intelligence community (IC); mapping information for military operations; geospatial intelligence observations; and NGA analytic products, data and models.

NGA was the first intelligence agency to join in open-source software development, making easily available its software that enables collaboration between first responders in natural disaster situations. The agency also has played a key role in the development of the intelligence community desktop environment, which ultimately will link together the tools and operating systems of users across the intelligence enterprise and enable better collaboration and faster, more robust intelligence products for decision makers.

Taken together, these and other initiatives will enable the next phase of intelligence, immersion, where analysts interact with data -- and each other -- in virtual, 3D, and cloud-enabled environments where information can be shared and examined from multiple angles, by multiple people, in real time.

Cardillo will formally succeed Long in October 2014, according to DOD.

Director of National Intelligence Robert Clapper issued his own statement:

Robert brought his leadership and professional expertise to bear on the most critical challenge the Intelligence Community has ever faced -- integrating the IC agencies and elements. He stepped into a new position we created, and as my deputy director for intelligence integration, has moved the IC forward as a community. At the same time, he has directly served the President as my principal designee for the President's Daily Brief. He is bringing this wealth of experience to the helm at NGA, and I expect NGA to continue on its rising trajectory under his leadership.