The Insider

By Jaspreet Gill
January 29, 2020 at 11:26 AM

U.S. and U.K. soldiers at Ft. Benning, GA, will soon test 60 new prototype technologies focused on cross-domain maneuver during the Maneuver Battle Lab's Army Expeditionary Warrior Experiments 2020.

The AEWE will run Feb. 4 through March 17 to assess the technologies at the squad, platoon and company level, according to an Army release.

The technologies fall into six categories: lethality, sustainment, survivability, mission command, mobility, and team and soldier performance. Examples include unmanned aircraft systems, enemy force detection systems and wearable systems.

Soldiers "will interact with industry and government capability providers to assess cutting-edge technologies and military capabilities for soldiers and tactical small unit modernization using realistic operational scenarios," according to the press release. The experiments aim to inform the development of the service's future concepts and requirements.

The Maneuver Battle Lab in November was looking at four new rifle scopes for the M4A1 Carbine as part of the AEWE, which officials said would extend the rifle's range.

By Ashley Tressel
January 29, 2020 at 10:39 AM

GM Defense announced yesterday it has teamed with Ricardo Defense on the Infantry Squad Vehicle for the Army.

The ISV is intended for use by a nine-soldier infantry squad moving within "the close battle area" and is expected to be lightweight and air-transportable.

The Army in June awarded GM Defense a $1 million contract to develop two ISV prototypes for testing and evaluation. A production and deployment contract award is expected later this year, according to GM's press release.

"Ricardo Defense will assist GM Defense with integrated product support, typically consisting of vehicle technical manuals and training materials for operators and maintenance personnel," the company said.

Also competing for the ISV are Oshkosh Defense with Flyer and Science Applications International Corp. with Polaris.

The three teams were due to deliver their prototypes to Aberdeen Test Center in Maryland on Nov. 13 for evaluations running through December, according to an Army release. The service said a second round of testing at Ft. Bragg, NC, would focus more on operational use.

By Marjorie Censer
January 29, 2020 at 9:42 AM

Textron said today its Textron Systems and Bell businesses reported sales growth during the most recent quarter.

Textron Systems recorded quarterly sales of $399 million, up 16% from the same three-month period last year. The company attributed the growth to "higher volume."

However, the unit's quarterly profit was $33 million, down 11% from the prior year.

Bell reported quarterly sales of $961 million, up 16% from a year earlier as a result of higher commercial sales.

The unit's quarterly profit hit $118 million, up 9% from the prior year.

Meanwhile, Oshkosh said sales in its defense segment during the most recent quarter reached $493 million, up 6% from the same period a year earlier. The company attributed the growth to the "continued ramp up of [Joint Light Tactical Vehicle] sales to the U.S. government."

Oshkosh said quarterly profit in its defense unit was just shy of $31 million, down 57%.

"The decrease in operating income was due to a large cumulative catch-up adjustment on contract margins in the prior-year quarter, adverse product mix, a favorable resolution of contract compliance matters in the prior-year quarter and higher new product development spending," the company said.

By Marjorie Censer
January 29, 2020 at 9:00 AM

ManTech International said today it has named Kemp Ensor vice president and deputy general manager of the security solutions business unit within its mission, cyber and intelligence solutions group.

Ensor will “help lead strategic and operational initiatives driving innovative technology solutions that support missions of the largest members of the U.S. intelligence community,” the company said.

He previously spent 37 years with the government. Ensor spent 18 years as director of security and counter intelligence for the National Security Agency, ManTech said.

By John Liang
January 28, 2020 at 2:12 PM

This Tuesday INSIDER Daily Digest has news on missile defense in Guam, the competition over the Navy's Next Generation Jammer-Low Band contract, Air Force space acquisition efforts and more.

Under Secretary of Defense for Policy John Rood told the House Armed Services Committee this morning that the Defense Department is reviewing a plan to beef up Guam's missile defense capability:

Pentagon considers INDOPACOM gambit to replace THAAD with Aegis Ashore on Guam

The Pentagon is considering a proposal to bolster Guam's defense by replacing the Terminal High Altitude Area Defense system with an Aegis Ashore site -- a move that would mark the first Pacific deployment of the land-based Standard Missile system to protect forward-deployed forces in the western-most U.S. territory against North Korean threats.

It looks like L3Harris and Northrop Grumman will be the companies competing to win the Navy's Next Generation Jammer-Low Band contract competition:

Raytheon sits out Next-Gen Jammer-Low Band competition, leaving L3Harris vs. Northrop

Raytheon has bowed out of a multibillion-dollar maritime airborne electronic attack competition, setting up a two-way race between L3Harris and Northrop Grumman for the Navy and Marine Corps' Next Generation Jammer-Low Band (NJG-LB) program.

Shawn Barnes, who works in the Air Force's new space acquisition and integration office, recently spoke with a small group of reporters at the Pentagon:

USAF to discuss space acquisition, architecture roles at mid-February enterprise summit

As the Air Force readies a new space acquisition and integration office, one of its early efforts is to identify roles and responsibilities for existing organizations that develop space capabilities, including the Space Development Agency, the Space Rapid Capabilities Office and the Space and Missile Systems Center.

The Air Force's top uniformed official isn't ready to wade into the fight over which service deserves more funding:

Goldfein dodges public budget fight, details risk in Air Force's digital transformation pitch

Air Force Chief of Staff Gen. David Goldfein this week declined an opportunity to make a case for his service to have a bigger share of the Defense Department budget topline, despite claims in recent weeks from Navy and Army leadership that their respective services require more than the standard one-third allotment.

Weapon deliveries to Iraq have been temporarily frozen:

U.S. government pauses weapon deliveries, personnel support for Iraq's F-16 fleet

The U.S. government has halted all weapon deliveries to Iraq -- including the Air Force's program supplying Sidewinder missiles, Maverick missiles and other arms for the country's new F-16 fleet -- amid tensions with Iran and paramilitary groups there.

Last but certainly not least, some cyber defense news from our colleagues at Inside Cybersecurity:

DOD-backed group for certifying cyber auditors announces full board of directors

The Accreditation Body for implementing the Defense Department's landmark cybersecurity certification program has announced a full board of directors, less than two weeks after the deadline for accepting applications for the positions.

NSA lawyer: Technology imposes new national security responsibilities on private industry

The increased threat to national security from new technologies in cyberspace will impose unprecedented responsibilities on private industry to protect critical infrastructure, while challenging government policymakers to preserve civil liberties in meeting these emerging risks, according to National Security Agency General Counsel Glenn Gerstell.

By Tony Bertuca
January 28, 2020 at 12:39 PM

A senior Pentagon official said today there is concern the South Korean government could allow telecommunications providers to build a new, high-speed 5G wireless network with equipment made by Chinese technology giant Huawei.

The statement from Under Secretary of Defense for Policy John Rood follows news that the United Kingdom will not ban Huawei from its network, despite the urging of the Trump administration.

"It's one of the areas where the Chinese government works with their state-owned companies in ways we find concerning," Rood told the House Armed Services Committee.

"We are trying to warn our allies against having the unsecure activities in their networks," he said. "If a trusted partner were to do that, one of the concerns would be the security of the information we provide. Is it continuing to be safeguarded?"

Rood said South Korea has yet to install any Huawei equipment the Pentagon finds "problematic."

"But obviously one of the concerns we have is various telecommunications providers considering the installation of that type of equipment," he said.

The U.K., however, is a key American ally and a member of the "Five Eyes" intelligence-sharing group of countries, which also includes Canada, Australia and New Zealand.

The British government released a statement saying Huawei would operate under "tight restrictions."

"High-risk vendors never have been and never will be in our most sensitive networks," Nicky Morgan, U.K. secretary of state for digital, culture, media and sport, said in a statement. "The government has reviewed the supply chain for telecoms networks and concluded today it is necessary to have tight restrictions on the presence of high-risk vendors."

Still, the move was criticized by some in Washington.

Rep. Jim Banks (R-IN), co-chair of the House Armed Services Committee's Future of Defense Task Force, released a statement calling the U.K.'s decision a "colossal mistake."

"I am sad to see our ally on the wrong side of the Silicon Curtain," he said. "This decision puts both our national securities at risk and damages our 'special relationship.'"

Banks last week introduced a bill that would prohibit the United States from sharing intelligence with countries that allow Huawei to operate their 5G networks.

A similar bill has been introduced by Sen. Tom Cotton (R-AR), who tweeted that the U.K.'s Huawei decision is "deeply disappointing" and called on the U.S. Director of National Intelligence to conduct a "thorough review" of U.S.-UK intelligence-sharing.

Meanwhile, media reports last week said the Commerce Department withdrew a proposal to limit the ability of U.S. companies to sell products to Huawei because it was opposed by the Pentagon.

By Marjorie Censer
January 28, 2020 at 12:14 PM

Lockheed Martin today reported quarterly sales of $15.9 billion, up about 10% from the same three-month period a year earlier. Quarterly profit reached $1.5 billion, up almost 20% from the prior year.

The contractor also reported sales for the year of $59.8 billion, up 11% from 2018. The company’s 2019 profit totaled $6.2 billion, up 23% from 2018.

During both the quarter and the full year, all four of Lockheed’s business units posted sales gains.

Lockheed’s missiles and fire control business saw the greatest sales gains for the year. The unit said sales in 2019 increased 20% over 2018.

“The increase was primarily attributable to higher net sales of approximately $940 million for tactical and strike missile programs due to increased volume (primarily precision fires, new hypersonic development programs, and classified development programs); about $465 million for integrated air and missile defense programs due to increased volume (primarily PAC-3 and THAAD); and about $300 million for sensors and global sustainment programs due to increased volume (primarily SOF GLSS and Apache),” the company said.

By Sara Sirota
January 28, 2020 at 11:14 AM

The Air Force is looking to build a long-term partnership with an industry provider as it seeks to upgrade the E-3 Airborne Warning and Control System to transmit and receive fifth-generation fighter platform sensor data.

AWACS can already exchange Link 16 messages at the "collateral secret level," but now the Air Force wants the Boeing-built surveillance aircraft to receive and display Link 16 data at the "U.S.-only secret level from separately encrypted network participation groups," according to a request for information released Monday.

The upgrade is intended to "improve situational awareness and shorten the kill chain for warfighters," the notice states.

The Air Force emphasizes that received messages at two different security levels cannot be merged with one another.

"At a minimum, AWACS must be able to display the U.S.-only secret data in a separate processing enclave," the RFI states. "It is desired for AWACS to be able to transfer collateral secret data from the current mission computing system and overlay (threshold) or fuse (objective) the data with the U.S.-only secret data in a separate processing enclave."

"It is also desired to cross domain transfer the U.S.-only secret data to the [mission computing system] as permitted by the data security policies," the notice adds.

Responses are due by Feb. 26.

By Marjorie Censer
January 28, 2020 at 11:08 AM

CACI International said this week it has named Marlin Edwards senior vice president for business development.

He "will help lead efforts to increase business for CACI’s mission expertise and technology offerings and help expand key client relationships by driving operational excellence and winning new contracts," the company said.

Edwards previously spent 15 years at ManTech International, including as business development vice president.

By Marjorie Censer
January 28, 2020 at 10:30 AM

The chief executive of United Technologies hopes to close the merger between Raytheon and United Technologies in early April, at the same time as UTC spins off its Otis and Carrier businesses.

In a call with analysts this morning, Greg Hayes said this quarter's earnings call was the last for United Technologies.

He said UTC is now planning for the Raytheon deal to "close concurrent with portfolio separation in early April."

"Integration planning is well underway," Hayes added.

By Ashley Tressel
January 27, 2020 at 5:10 PM

The U.S. Court of Federal Claims has dismissed Navistar Defense's complaint in which the company accused the Army of violating the "automatic stay" requirements of the Competition in Contracting Act in procuring vehicles as part of the Family of Medium Tactical Vehicles program.

The court released the decision on Jan. 10 about Navistar's complaint filed last September.

Navistar alleged the Army did not suspend performance of the FMTV contract, awarded to Oshkosh Defense, in response to a July 8 protest Navistar filed with the Government Accountability Office. The latest complaint argued the Army also failed to notify GAO of its plans to continue performance, violating the CICA.

The court says the issues in this lawsuit were not unique to those under a previously resolved 2016 GAO protest by Navistar, meaning the company had waived its right to raise certain claims related to the FMTV contract when it agreed to a settlement in 2016.

The judge ruled the Army's 2019 sole-source contracting action to Oshkosh did not constitute enough of a change to be considered separately from the previous resolution Navistar had worked out with the Army.

The judge also says Navistar's challenges to the Army's sole-source award, including the allegedly improper extension of the performance period, "lack merit."

By John Liang
January 27, 2020 at 1:55 PM

This Monday INSIDER Daily Digest has news on future Pentagon autonomous system development, a counter-hypersonic technology development project, the Virginia-class attack submarine program and more.

The Defense Department is seeking feedback from industry on advanced autonomous systems under the auspices of a new project, "Fire Support Next":

Pentagon eyes next generation of autonomous weapon systems

Pentagon officials will meet with industry this spring to discuss a wide range of autonomous system developments in the coming years, according to a public notice which sheds more light on how Defense Department officials envision pairing machines and humans on the battlefield.

Document: DOD notice on 'fire support next'

Late last week, the Defense Advanced Research Projects Agency awarded Northrop Grumman Systems' Redondo Beach, CA, business unit a $13 million cost-plus-fee contract for the "Glide Breaker" program:

Northrop wins new 'Glide Breaker' counter-hypersonic tech development project

The Defense Department has tapped Northrop Grumman to lead Glide Breaker -- an advanced technology development program that aims to develop components that one day could enable a lightweight interceptor to defeat hypersonic boost-glide weapons at very long range.

The most recent contract order for Virginia-class attack submarines will cost more than originally projected:

Navy tallies nearly $34 billion tab, including GFE, for Block V Virginia-class buy

The newest Virginia-class submarine order is estimated to cost nearly $10 billion more than the $22.2 billion contract announced last month, thanks to the price tag of major subsystems the government must separately procure and deliver to the shipbuilder for inclusion in the new boats.

When Defense Department acquisition chief Ellen Lord previewed the new Adaptive Acquisition Framework in October, she called it "the most transformational acquisition policy change we've seen in decades":

Pentagon releases new guidelines to accelerate acquisition

The Pentagon has released its new Adaptive Acquisition Framework, which defense officials say will dramatically accelerate a notoriously slow and cumbersome system.

Document: DOD's adaptive acquisition framework

The Government Accountability Office last month denied Raytheon's protest of a Ship Self Defense System contract award. GAO only recently released its full decision:

GAO: Navy found Raytheon's technical edge in SSDS bid not worth higher price

In evaluating the Ship Self-Defense System, the Navy found Raytheon's technical edge was not worth its much higher price, according to a new report from the Government Accountability Office.

Document: GAO decision on Raytheon's SSDS protest

By Marjorie Censer
January 27, 2020 at 5:30 AM

BAE Systems executives told Inside Defense last week they expect to integrate their two newly announced acquisitions as "relatively intact businesses" and aren't expecting to make significant employee reductions.

In an interview at the company's Arlington, VA, headquarters, Jerry DeMuro, chief executive of BAE's U.S.-based business, and Tom Arseneault, its president and chief operating officer, said the opportunity to acquire Collins Aerospace's military GPS business and Raytheon's airborne tactical radio business was unique.

"These are two businesses that would have never come on the market had it not been for the larger merger," Arseneault said. The two businesses are being sold in connection with the planned merger between Raytheon and United Technologies.

He said the units will "bolt into existing businesses" within BAE's electronics systems sector. DeMuro added that they will effectively become product lines within the business.

The military GPS business has about 675 employees, while the radio unit has about 100 employees, according to BAE. BAE's electronic systems unit currently has about 15,300 employees.

DeMuro said he's not expecting significant cost synergies. The deal, he said, is about "market synergies."

A BAE spokeswoman said the deals are expected to close at roughly the same time as the Raytheon-United Technologies merger.

By Tony Bertuca
January 27, 2020 at 5:00 AM

Senior Pentagon officials are slated to speak at a host of events around the Washington area this week, while several large defense companies will hold quarterly earnings calls.

Tuesday

The Atlantic Council hosts a discussion with the chief of U.S. Transportation Command.

The Senate Armed Services Committee holds a hearing on U.S. strategy in Afghanistan with former defense officials.

The House Armed Services Committee holds a hearing on the Korean Peninsula.

The House Oversight and Reform national security subcommittee holds a hearing on the Trump administration’s Afghanistan strategy.

Lockheed Martin and United Technologies executives are set to discuss quarterly earnings.

Wednesday

The Air Force Association hosts a breakfast with Vice Chairman of the Joint Chiefs Gen. John Hyten.

The Center for Strategic and Budgetary Assessments hosts a discussion with acting Navy Secretary Thomas Modly.

Boeing, General Dynamics, Oshkosh and Textron executives are set to discuss quarterly earnings.

Thursday

The Senate Armed Services Committee holds a hearing with the chiefs of U.S. Africa Command and U.S. Southern Command.

CACI International, Northrop Grumman and Raytheon executives are slated to discuss quarterly earnings.

Friday

Booz Allen Hamilton executives are scheduled to discuss quarterly earnings.

By Marjorie Censer
January 24, 2020 at 7:32 PM

Lockheed Martin said today its board of directors has elected retired Marine Corps Gen. Joseph Dunford, the former chairman of the Joint Chiefs of Staff, to its board, effective Feb. 10.

“Dunford will serve on the corporation's Classified Business and Security Committee and Nominating and Corporate Governance Committee,” Lockheed said.