The Insider

By John Liang
October 9, 2012 at 7:15 PM

The Pentagon's inspector general recently released a report on how the military services have undertaken single-bid contracts, and the results of its review aren't pretty. According to the report's cover letter:

The Services did not follow applicable single-bid guidance when awarding approximately $656.1 million in contracts, and did not verify that modifications were only made within the 3-year limitation from base contract award. As a result, the Services have not realized potential cost savings associated with increased competition for 31 of the 78 single-bid contracts and with re-competing 39 of the 47 contract modifications reviewed.

To view the full report, click here.

By John Liang
October 5, 2012 at 7:24 PM

The Spanish government today completed the details of its agreement to allow the deployment of four U.S. Navy Aegis Ballistic Missile Defense ships to the Rota naval base in Spain.

The agreement "establishes the terms and limits under which Spain authorizes the deployment of said U.S. Navy Aegis destroyers to Rota Naval Base," the Spanish Foreign Ministry said in a statement.

The deployment will begin in 2013, and the announcement of the agreement's finalization comes exactly one year after Spain initially said it would allow the ships at Rota. Inside Missile Defense reported last October that NATO Secretary General Anders Fogh Rasmussen, Defense Secretary Leon Panetta and Spanish Prime Minister Jose Luis Rodriguez Zapatero made the announcement at an Oct. 5, 2011, briefing at NATO headquarters in Brussels. Further:

At that briefing, Rasmussen said the agreement "marks an important step forward in our common efforts to defend NATO populations, forces and territories against missile threats. Following on the commitments of several other nations, this agreement takes us one step closer to our goal of operational capability. And it reinforces the ties of mutual commitment, mutual cooperation and mutual trust which bind our Alliance together across the Atlantic."

Zapatero said his country "should be the site for this component of the system, due to its geostrategic location and its position as gateway to the Mediterranean." Consequently, Rota will "become a support center for vessel deployment, enabling them to join multinational forces or carry out NATO missions in international waters, particularly in the Mediterranean," he added.

The basing of U.S. Aegis BMD ships is not Spain's only contribution to European missile defense, Zapatero noted. The country will play host to a Combined Air Operations Center (CAOC) in Torrejón de Ardoz. It is one of two CAOCs -- the other based in Uedem, Germany -- that "will form part of the air command and control system which is to include the anti-missile defense that the Alliance is going to implement," he said.

Defense Secretary Leon Panetta said having four Aegis BMD ships at Rota would result in "significantly boosting combined naval capabilities in the Mediterranean, and enhancing our ability to ensure the security of this vital region. This relocation of assets takes place as part of the United States' ongoing effort to better position forces and defensive capabilities in coordination with our European allies and partners."

By John Liang
October 5, 2012 at 3:34 PM

A Government Accountability Office report issued this week finds that "improved and expanded use" of strategic sourcing "could save billions in annual procurement costs."

The report -- dated Sept. 20 -- states that GAO reviewed strategic sourcing efforts at four agencies -- the Defense, Homeland Security, Veterans Affairs and Energy departments -- "that were among the 10 agencies with the highest fiscal year 2011 procurement obligations."

With regard to the Pentagon, GAO "reviewed the efforts of four component agencies -- Air Force, Army, Navy, and the Defense Logistics Agency (DLA) -- which accounted for 88 percent of DOD spending in fiscal year 2011, as well as department-wide efforts managed by DOD's Program Acquisition and Strategic Sourcing (PASS) office, which is within DOD's Defense Procurement and Acquisition Policy (DPAP) organization and reports to the Under Secretary of Defense for Acquisition, Technology, and Logistics (AT&L)," the report states. Further:

According to DOD officials, DOD procurement spending and savings through strategic sourcing contracts in fiscal year 2011 may be underreported, as DOD currently tracks department-wide initiatives on an ad hoc basis. When strategic sourcing contracts were used, selected agencies generally reported savings ranging from 5 percent to over 20 percent of spending through strategically sourced contracts. Further, most of the four agencies' current and planned strategic sourcing efforts do not address their highest spending areas, the majority of which exceed $1 billion and most of which are services. As a result, opportunities exist for agencies to realize significant savings by applying strategic sourcing in these areas.

GAO found that "managed spending and savings varied greatly within DOD," according to the report, which adds:

At DOD -- the federal government's largest procurer of products and services -- the Army, Navy, Air Force, and DLA together reported spending almost 6 percent, or $19 billion, through strategic sourcing contracts. In addition, the Defense Program Acquisition and Strategic Sourcing (PASS) office, which coordinates strategic sourcing efforts across the department, was unable to provide us with a comprehensive list of department-wide strategic sourcing initiatives, and indicated that there are likely more strategic sourcing initiatives that are not accounted for because department-wide initiatives are reported on an ad hoc basis. However, they provided information on a limited number of department-wide strategic sourcing initiatives that together represented more than $1 billion of spending and over $900 million in savings in fiscal year 2011.

The proportion of procurement spending being managed through strategic sourcing varied widely among the military departments and DLA. . . . For example, the Army spent more than $125 billion on products and services in fiscal year 2011, but reported that only $280 million, or less than a quarter of one percent of procurement spending, was strategically sourced. In contrast, DLA spent $36 billion on goods and services in fiscal year 2011, and reported that 46 percent or $16 billion was strategically sourced. According to DOD officials, it is to be expected that a high percentage of DLA's spending is suitable for strategic sourcing because DLA's unique mission is to supply high volume products that are bought across DOD, such as uniforms and food. Although DLA's spending represents only 10 percent of DOD's total procurement spending, DLA's strategic sourcing efforts demonstrate that when DOD approaches procurement from a department-wide level, it can achieve successful outcomes. In addition, PASS officials reported savings of $889 million in fiscal year 2011 from one initiative that leveraged department-wide spending on enterprise software. Specifically, the initiative consolidates DOD commercial software, information technology hardware, and services requirements to obtain lower prices from information technology providers.

Read the GAO report.

By John Liang
October 4, 2012 at 8:09 PM

The Pentagon this afternoon released its "Western Hemisphere Defense Policy Statement," which "explains how the January 2012 Defense Strategic Guidance will shape DOD engagement in the Western Hemisphere," according to a press release.

The document finds that "the capacity of national civil authorities, including law enforcement, throughout the hemisphere is uneven." Further:

In some countries civilian authorities have been overwhelmed by the magnitude of response required by the security challenges they face. This gap in civilian capacity has led some national leaders to expand their reliance on the armed forces to supplement law enforcement and provide humanitarian support. Some militaries lack sufficient legal foundations, doctrine, training, equipment and procedures to promote cooperation across their governments and many are ill-prepared to fulfill these temporary roles.

InsideDefense.com reported in March that U.S. Southern Command and its partners lack the maritime assets needed to stop two-thirds of the traffickers they track. The command's top general said on March 7 that to achieve its mission of helping to halt transnational organized crime, he could use more intelligence, surveillance and reconnaissance assets, as well as more maritime capability that can be used to intercept illicit traffickers traveling through Caribbean and eastern Pacific waters.

SOUTHCOM's commander Gen. Douglas Fraser said ISR requirements top his integrated priority list. "I'm a combatant commander, I could always use more ISR," he said. Further:

"We intercept about 33 percent of what we know is out there, and that's just a limitation on the number of assets," Fraser said during a breakfast with reporters today. He noted more traffickers are getting through.

SOUTHCOM gets information on when a vessel leaves a particular port and what specific vessels to look for, he said. The command has maritime patrol aircraft that can find and follow these ships, but it's a struggle to have vessels available and positioned correctly to intercept the boats. SOUTHCOM and its partners also struggle with catching up with aircraft when they land because there are a number of different airfields in each country, and the traffickers are able to quickly unload their wares in about 15 minutes. "You have to be very, very capable and have assets in the right place, right time to counter that," he said.

Specifically, SOUTHCOM needs ISR with a fully penetrating capability to spot forces hidden in dense jungle canopies, such as in Colombia and Peru, he noted. "This is really an R&D effort right now, it's an effort that we really haven't gotten to a what I would say a capable foliage penetrating capability yet fielded," he said, noting that vessels that can be fully submerged under water are being built in the jungles of South America.

This afternoon's policy statement concludes:

DOD seeks to be the partner of choice and a key enabler of strong regional defense cooperation in the Western Hemisphere. The January 2012 Defense Strategic Guidance requires a dynamic evolution of our defense policy in the Western Hemisphere to achieve the security goals we share with regional partners. A remarkable transformation of partner readiness and willingness to address the challenges of the 21st century, both throughout and beyond the hemisphere, augurs well for renewed U.S. commitment to innovative partnerships and shared responsibility. The Department will focus on strengthening national defense capacity, fostering regional integration and interoperability, and the constructive evolution of multilateral defense cooperation.

Read the full document.

By Gabe Starosta
October 4, 2012 at 1:14 PM

CAPE CANAVERAL, FL -- The Air Force’s third Global Positioning System IIF satellite was successfully launched this morning from Cape Canaveral Air Force Station, FL. The Boeing-built space vehicle was sent into orbit aboard a United Launch Alliance Delta IV rocket booster at 8:10 a.m., the first minute of the launch window, and all data shows that the multiple Evolved Expendable Launch Vehicle engines are performing as planned, according to ULA.

Boeing provided transportation for reporters to the launch site.

The GPS constellation consists of 31 operational satellites, and GPS IIF-3 will replace a GPS IIA space vehicle that was launched in 1993, according to an Air Force Space and Missile Systems Center spokeswoman. At least one older IIA satellite, which has been operational for 21 years, remains on orbit, Col. Steve Steiner, the chief of the GPS space systems division within SMC's GPS directorate, told reporters last week.

The third GPS IIF vehicle is the first to include an improved cesium clock that should provide better precision, navigation and timing performance, Boeing’s Paul Rusnock said at a media roundtable in Cape Canaveral on Oct. 3. Rusnock is the vice president of government space systems for Boeing.

Company spokeswoman Paula Shawa added that an issue involving trapped air on the IIF-2’s cesium clock had required “higher-than-desired clock maintenance from the ground crew.” Boeing has made manufacturing changes on all later vehicles to mitigate risk, she said.

By Christopher J. Castelli
October 3, 2012 at 1:31 PM

Defense Secretary Leon Panetta receives a briefing this morning on Iran from the Defense Policy Board, Deputy Defense Secretary Ashton Carter revealed this morning before launching into a speech on the Asia-Pacific region.

The speech is part of an event organized by the Woodrow Wilson Center, which is led by former Rep. Jane Harman (D-CA), also a member of the Defense Policy Board. Carter told the audience he had just seen Harman this morning briefing Panetta.

By John Liang
October 2, 2012 at 4:16 PM

The Pentagon's latest industrial capabilities report highlights a project begun in 2011 that resulted in the development of a facility that would allow a regular supply of high-quality beryllium metal:

This project allows the United States and its allies to be assured of an uninterrupted supply of primary (high-purity) beryllium metal. Current inventories of National Defense Stockpile beryllium ingots are projected to be exhausted in the near future. Imports of beryllium cannot meet the purity levels required for many defense applications. Essential strategic uses, where there is no suitable substitute for high- purity beryllium, include: airborne Forward Looking Infrared (FLIR) systems for fighter aircraft and attack helicopters; guidance systems on existing strategic missiles; surveillance satellites; ballistic missile defense systems; and reflectors for high flux, nuclear test reactors.

The Title III Program entered into a partnership with Materion Corporation (then Brush Wellman, Inc.) in November 2005, thereby initiating construction of the beryllium “Pebbles Plant” in Elmore, Ohio. Since project award, Materion has successfully established the infrastructure, facilities, and equipment necessary to support a production capacity of 160,000 pounds per year of high-purity beryllium metal. Today, the completed plant stands 73 feet tall, contains three levels, has a 51,045 sq. ft. footprint, and contains 124,358 total square feet of floor space. The plant produced its very first batch of beryllium pebbles on 15 April 2011. Beryllium pebble qualification and the Initial Operational Capability of the plant were achieved in December 2011, with normal plant operations beginning in January 2012.

Initial funding was provided through DoD increases to the DPA Title III budget. Additionally, Congressional increases were added to accelerate the restoration of this critical domestic production capacity. Total Title III funding on this project was $73.23M. Materion provided an additional $26.4M in company cost share for the project. Materion's cost share consisted of the building, supporting infrastructure, tie-ins, and ancillary laboratory equipment. This was a sole source solicitation as a single domestic source was identified for the specific technology of interest.

Click here to view the report.

By John Liang
October 1, 2012 at 5:54 PM

The Joint Strike Fighter program is getting a new second-in-command, according to a just-released Pentagon statement:

Rear Adm. (lower half) Randolph L. Mahr will be assigned as deputy director, Joint Strike Fighter Program, Office of the Under Secretary of Defense Acquisitions, Technology and Logistics, Arlington, Va.  Mahr is currently serving as commander, Naval Air Warfare Center, Aircraft Division/assistant commander for research and engineering, Naval Air Systems Command (AIR 4.0), Patuxent River, Md.

Mahr's incoming boss hasn't had kind words for the JSF program, as InsideDefense.com reported last month:

The next Joint Strike Fighter program executive officer today delivered a blunt assessment of the major changes needed to the way the F-35 is managed -- primary among them a reset of the relationship between manufacturer Lockheed Martin and the program office, which he termed "the worst I’ve ever seen."

Maj. Gen. Christopher Bogdan, the deputy PEO of the F-35 Joint Program Office (JPO), has been nominated for a third star and the program manager's job when Vice Adm. David Venlet retires. In his first appearance before reporters since moving into a JSF management role five weeks ago, Bogdan today praised Venlet for steering the program onto a sustainable path while criticizing almost every aspect of the way the F-35 program was conceived.

In particular, Bogdan emphasized what he described as a lack of wisdom behind the idea of concurrency, the aircraft program's simultaneous development, production, training and fielding processes.

Bogdan -- whose extensive acquisition experience includes serving as PEO of the KC-46 tanker program and as senior military assistant to the Pentagon's top weapons buyer -- stressed that the relationship between the government, the JSF contractors and other participants needs to be radically altered for the program to progress.

"Here comes a little bit of straight talk," he said at the Air Force Association's annual conference in National Harbor, MD. "I have a lot of [experience] in the acquisition world, and I will tell you that the relationship between Lockheed Martin and the JPO and the stakeholders is the worst I have ever seen. The worst I’ve ever seen."

Bogdan continued: “We will not succeed in this program until we get past that. It's a cultural thing. It's a cultural thing that Lockheed Martin has to work on. It's a cultural thing that the JPO has to work on. It's a cultural thing the department has to work on. We have to find a better place to be in this relationship."

By John Liang
October 1, 2012 at 3:59 PM

The inspectors general for the Defense and State departments, the U.S. Agency for International Development and the Government Accountability Office, the special inspectors general for Iraq and Afghanistan and the service audit agencies recently released their joint oversight plan for Southwest Asia. According to the report:

We expanded this oversight plan beyond the statutory mandate to show all the audit, inspection, and evaluation work (oversight) for Afghanistan and the rest of the U.S. Central Command's area of responsibility. In addition to the audits of contracts, subcontracts, and task and delivery orders for logistical support being conducted, this comprehensive plan addresses other oversight areas, including asset accountability, transition of security responsibilities in Afghanistan, financial and logistics management, security, rule of law, and economical and social development.

To view the full report, click here.

By Christopher J. Castelli
September 28, 2012 at 4:17 PM

The Pentagon today published its new Capstone Concept for Joint Operations, signed by Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey.

The document, which calls for globally integrated operations, is intended to connect the Defense Strategic Guidance unveiled in January to yet-to-be-developed joint doctrine that will further refine the ideas and support military operations. Defense Department investment decisions are also supposed to be guided by this effort.

By John Liang
September 27, 2012 at 3:00 PM

A senior Pentagon official this week issued a memo calling for all documents related to major defense acquisition programs to be uploaded to a searchable database.

In the Sept. 25, 2012, memo, Pentagon acquisition chief Frank Kendall writes:

The acquisition information required by the current Department of Defense (DoD) Instruction 5000.02 is not routinely stored in an accessible manner to support milestone decision-making or other analytical uses across the Defense Acquisition Community. In 2012, the Office of the Under Secretary of Defense for Acquisition, Technology and Logistics piloted and deployed the Acquisition Information Repository (AIR), a searchable document repository for the systematic consolidation of this information.

The UNCLASSIFIED AIR reached initial operational capability in February. A SIPRNet AIR capability should reach initial operating capability later this year. The AIR will store final milestone documents for Pre-Major Defense Acquisition Programs, Unbaselined Major Automated Information Systems, Acquisition Category (ACAT) ID, ACAT IAM, and Special Interest Programs with potential to expand to include ACATIC and IAC programs later.

The attached matrix identifies the Office of Primary Responsibility (OPR) for each document and the document types each OPR will initially upload into the AIR. This list will be updated as necessary on my direction. OPRs are responsible for loading documents, appropriately marking documents, setting document permissions, and managing access to their documents. It is important that OPRs load documents in a timely fashion and with appropriate accessibility. Effective immediately, OPRs will upload into AIR all UNCLASSIFIED milestone documents approved after the date of this memorandum within 5 business days of their formal approval. The AIR will provide the capability to generate a standard report of loaded (approved) documents for a program to facilitate assessment of program planning and statutory compliance in support of milestone decisions.

View the memo.

By John Liang
September 26, 2012 at 5:20 PM

Last week, InsideDefense.com reported that the Pentagon, hoping to avoid disrupting the Navy's tightly orchestrated aircraft carrier maintenance schedule and crimp the service's ability to surge naval power, was seeking congressional permission to use fiscal year 2012 funds to finance work on two aircraft carriers that would otherwise be delayed under a pending FY-13 continuing resolution.

We now have the reprogramming request.

From the story:

On Sept. 18, Pentagon Comptroller Robert Hale proposed reprogramming $219.1 million into the Navy's shipbuilding and conversion accounts to finance three warship projects: the refueling of the aircraft carriers Theodore Roosevelt (CVN-71) and Abraham Lincoln (CVN-72) and the completion of construction on DDG-1000 ships.

Specifically, the Defense Department is seeking to move $68 million into Navy accounts for the six months of the continuing resolution -- October through March -- to cover continuing efforts to refuel and overhaul the Roosevelt and "achieve the planned completion date of June 2013," the reprogramming request states.

In addition, the Pentagon proposes shifting $96.1 million to commence work on the refueling and complex overhaul of the Lincoln, considered a new start because no funding was appropriated for the project in FY-12. "Failure to provide funding and authorize a new start in FY-12" will carry a number of consequences, including a late delivery of the completed overhaul, DOD states. "The department will be unable to maintain a fleet response plan of three carriers deployed/available, two carriers within 30 days, and one carrier available within 90 days," the reprogramming warns.

Another ramification: "Potential inability to meet additional combatant commander emergent tasking," according to the proposed budget action. Lastly, any delay to the refueling of the Lincoln will disrupt plans to begin inactivating the aircraft carrier Enterprise (CVN-65), slated to begin in December 2014, according to the Pentagon.

UPDATE 6:00 p.m.: A Navy spokeswoman just told InsideDefense.com that lawmakers had approved the reprogramming request.

By John Liang
September 26, 2012 at 3:26 PM

The Pentagon recently issued its annual industrial capabilities report to Congress, in which it warns:

The loss or reduction in design teams and specialized engineering skills is a particular Department concern that cuts across multiple defense sectors -- most notably the aircraft, missile, space, Command, Control, Communications, Computers (C4) and Information Communications Technology (ICT), and munitions and missiles sectors. The demand for new design and development is at a historic low with significant skill and experience loss expected due to an aging and retiring workforce and a shortage in qualified design engineers. The loss in design expertise may jeopardize U.S. technological edge and increase the execution risks for future DoD programs. Preserving and developing unique and highly-creative talent, skills, and technology are vital to the industrial base's ability to design and produce world-class products.

Science, Technology, Engineering, and Mathematics (STEM) education is essential toward ensuring the nation maintains a workforce capable of understanding and satisfying the technical and advanced design requirements of future defense systems. After a temporary rise during the internet boom of the 1990s, enrollments in university STEM programs have reverted to previous historical levels. There is growing concern within the Department that there may be an insufficient supply of qualified graduates to meet rising defense C4/ICT and other design-unique program requirements.

The Department is addressing STEM education issues with the National Science Foundation and the President's Networking and Information Technology Research and Development Program. DASD(MIBP) is also monitoring potential design team shortages through continued S2T2 assessments.

View the full report.

Check out our coverage of the report:

New DOD Assessment Pinpoints At-Risk Defense Industrial Base Sectors (DefenseAlert, Sept. 25)

An "aggressive" Pentagon analytical effort to identify critical and fragile niches in the defense industrial base has turned up several areas of concern for senior military acquisition officials, who have developed plans to intervene if necessary, according to a new government report.

DOD: Industrial Edge To 'Shift Against' U.S. Without 'Near-Term' 6th-Gen Fighter (DefenseAlert, Sept. 24)

Without "near-term" plans to launch a sixth-generation fighter aircraft program before 2030, the Defense Department estimates the U.S. aerospace industry could forfeit what is believed by the U.S. government to be a five-year technological advantage over foreign combat aircraft makers, according to a previously unreported Pentagon assessment.

Stay tuned for more.

By John Liang
September 25, 2012 at 3:13 PM

The Pentagon recently issued an instruction memo that outlines the Defense Department's policies for setting up, operating and maintaining "DOD Internet services on unclassified networks to collect, disseminate, store, and otherwise process unclassified DOD information," as well as the "use of Internet-based capabilities (IbC) to collect, disseminate, store, and otherwise process unclassified DOD information."

More specifically:

4. It is DoD policy that:

a. Decisions to collaborate, participate, or to disseminate or gather information via DoD Internet services or IbC shall balance benefits and vulnerabilities. Internet infrastructure, services, and technologies provide versatile communication assets that must be managed to mitigate risks to national security; to the safety, security, and privacy of personnel; and to Federal agencies.

b. DoD Internet services and IbC used to collect, disseminate, store, or otherwise process DoD information shall be configured and operated in a manner that maximizes the protection (e.g., confidentiality, integrity, and availability) of the information, commensurate with the risk and magnitude of harm that could result from the loss, compromise, or corruption of the information.

(1) For use of DoD Internet services, paragraph 4.b. applies to both public and non-public DoD information.

(2) For use of IbC, this applies to the integrity and availability of public DoD information. IbC shall not be used to collect, disseminate, store, or otherwise process non-public DoD information, as IbC are not subject to Federal or DoD information assurance (IA) standards, controls, or enforcement, and therefore may not consistently provide confidentiality.

c. DoD information systems (ISs) hosting DoD Internet services shall be operated and configured to meet the requirements in DoDD 8500.01E (Reference (f)) and DoDI 8500.2 (Reference (g)), and certified and accredited in compliance with DoDI 8510.01 (Reference (h)).

d. Effective information review procedures for clearance and release authorization for DoD information to the public are conducted in compliance with DoDD 5230.09 and DoDI 5230.29 (References (i) and (j)). DoD information intended for non-public audiences requires similar review and consideration prior to dissemination. DoD employees shall be educated and trained to conduct both organizational and individual communication effectively to deny adversaries the opportunity to take advantage of information that may be inappropriately disseminated.

e. Public DoD websites shall be operated in compliance with the laws and requirements cited in Reference (c). Detailed explanations, and implementation guidance are provided at the Web Manager’s Advisory Council Website.

f. DoD Internet services and the information disseminated via these services, where appropriate, shall be made available to Federal initiatives such as Data.gov, Recovery.gov, and USA.gov to reduce duplication and to foster greater participation, collaboration, and transparency with the public. Where feasible and appropriate, such DoD information shall be provided as datasets in raw (machine readable) format as defined in DepSecDef Memorandum (Reference (k)).

g. All unclassified DoD networks (e.g., Non-classified Internet Protocol Router Network (NIPRNET), the Defense Research and Engineering Network) shall be configured to provide access to IbC across all the DoD Components.

h. Authorized users of unclassified DoD networks shall comply with all laws, policies, regulations, and guidance concerning communication and the appropriate control of DoD information referenced throughout this Instruction regardless of the technology used. Furthermore, all personal use of IbC by means of Federal government resources shall comply with paragraph 2-301 of DoD 5500.7-R (Reference (l)).

Read the full memo.

By Jordana Mishory
September 24, 2012 at 6:46 PM

More military-to-military contacts might help to stabilize the Asia-Pacific region and diffuse the conflict between China and Japan over the Senkaku islands, according to Kathleen Hicks, the principal deputy under secretary of defense for policy.

Speaking today at a Center for Strategic and International Studies event, Hicks said increased military-to-military engagement can help not only with China but with other nations in the region as well.

Asked why China would listen to the United States on the latest standoff between China and Japan over the islands, Hicks said stability in the region is of interest to everyone, including China.

Her comments echo those of Defense Secretary Leon Panetta last week in Japan. Panetta told reporters it's in everyone's interest for Japan and China to maintain good relations, noting that the message he's been trying to convey to China about the stand-off is “to urge calm and restraint on all sides.”

“The United States, as a matter of policy, does not take a position with regards to competing sovereignty claims,” Panetta said. “Having said that, we expect that these issues will be resolved peacefully. And although, you know, we understand the differences here with regards to jurisdiction, it is extremely important that diplomatic means on both sides be used to try to constructively resolve these issues.”