The Insider

By Gabe Starosta
May 15, 2012 at 6:14 PM

In response to some very public comments made by two F-22 pilots on the safety of flying the fighter jet, the Office of the Secretary of Defense has directed the Air Force to take further precautions against the hypoxia-like incidents affecting the fleet.

In a Pentagon press conference today, Acting Assistant Secretary of Defense for Public Affairs George Little announced that OSD has instructed the Air Force expedite the installation of a backup, “auto” oxygen system on the entire F-22 fleet. The Raptor's existing on-board oxygen generation system requires a manual activation, and the backup system would presumably activate automatically, but Pentagon spokesman Capt. John Kirby deferred questions about the new backup system to the Air Force.

Little also announced that F-22 flights will temporarily fly only short-duration flights and should remain close to potential landing locations at all times in case pilots encounter any hypoxia symptoms. This restriction is particularly relevant near Joint Base Elmendorf-Richardson in Alaska, an F-22 home base and a location where Raptors often fly long-range missions. F-22 aircraft will not be limited to a specific distance or time in flight, Kirby said, and the decision on how far, how long or at what altitude to fly will be left to operators. However, long-duration flights will be performed by other aircraft for now, Little said.

In addition to those two precautions, OSD has instructed the Air Force to submit a monthly progress report on the service's quest to discover a root cause of the F-22 fleet's oxygen generation issues.

Some F-22s are deployed in the Middle East, and Little said those airplanes will stay there and continue executing their missions. “We believe we can safely continue that deployment given the geography of the region,” he said.

By John Liang
May 15, 2012 at 3:02 PM

The House Armed Services Committee, in its report accompanying the fiscal year 2013 defense authorization bill, makes note of the NATO summit scheduled for next week in Chicago:

The committee recognizes the sustained commitment of NATO to mutual defense and regional stability and security. The summit provides an important opportunity for follow-on discussions from the 2010 Lisbon Summit regarding the future of NATO, with a focus on the International Security Assistance Force (ISAF) mission in the Islamic Republic of Afghanistan, smart defense, missile defense, and the future force composition of the alliance.

The committee recognizes the contribution of NATO, NATO-aspirant nations, and non-NATO nations that have committed more than 39,000 of the more than 129,000 troops deployed in Afghanistan. NATO has been a key player in Afghanistan by conducting operations against the insurgency and supporting the growth in capacity and capability of the Afghan National Security Forces. The committee encourages the Secretary of Defense to continue working with NATO, NATO-aspirant nations, and non-NATO nations to support ISAF operations and encourage long-term bilateral cooperation between the military and security forces of our partner nations and Afghanistan. Further, the committee encourages the President to use the summit as an opportunity to obtain multi-year commitments from ISAF coalition nations to support the sustainment of the Afghan National Security Forces post-2014.

The committee is aware of NATO’s smart defense concept that focuses on developing and maintaining military capabilities to address current and future security problems. While in times of austerity every dollar counts, the committee believes each nation must also contribute its fair share. The committee is concerned that few NATO nations are contributing the required 2 percent of its gross domestic product. The committee will continue to follow the development of the smart defense concept and the areas of multinational cooperation for smart defense projects developed at and following the Chicago summit.

As part of the committee's continued oversight of the summit's outcomes, the committee directs the Secretary of Defense, in coordination with the Secretary of State, to provide a report to the Senate Committee on Armed Services, the House Committee on Armed Services, the Senate Committee on Foreign Relations, and the House Committee on Foreign Affairs by October 1, 2012, on how the Department of Defense may support the summit's outcomes. The report should include a description of how the U.S. military may support the development and execution of the summit results, including projected and current U.S. military deployments, training, exercises, and other engagement activities.

In related news, click here to view the testimony from a Senate Armed Services Committee hearing held last week on the NATO summit.

By John Liang
May 14, 2012 at 4:32 PM

The Congressional Budget Office recently wrapped up a "preliminary estimate" of what it calls the "direct spending effects" of the House version of the fiscal year 2013 defense authorization bill, according to a May 11 letter to House Armed Services Committee Chairman Buck McKeon (R-CA). The letter further states:

Based on legislative language for H.R. 4310 that was provided to CBO from May 2 through May 10, CBO estimates that enacting this bill would decrease net direct spending by $33 million in 2013, $554 million over the 2013-2017 period, and $44 million over the 2013-2022 period. Because the bill would affect direct spending, pay-as-you-go procedures apply. Enacting the bill would not affect revenues.

Click here to view the bill language, and here to view the accompanying report.

By Gabe Starosta
May 11, 2012 at 6:48 PM

President Barack Obama's decision to nominate Air Force Gen. Mark Welsh to be the service's next chief of staff has set off a chain reaction of promotions and reassignments.

Welsh is the commander of U.S. Air Forces in Europe, and according to a Defense Department announcement issued this afternoon, Vice Chief of Staff Gen. Phillip Breedlove, has been nominated to succeed Welsh as commander of USAFE. And to take Breedlove's position as vice chief, Obama has nominated Lt. Gen. Larry Spencer, currently the director of force structure, resources and assessment (J-8) on the Joint Staff. Spencer's new position would also net him a fourth star and promotion to full general.

Finally, Maj. Gen. Noel Jones, the Air Force's director of operational capability requirements in the Pentagon, has been nominated for a third star and for assignment as the vice commander of USAFE. He would serve as Breedlove's deputy in that new role.

Air Force Chief of Staff Gen. Norton Schwartz's term expires this summer.

In unrelated promotion news, the KC-46's program executive officer is exchanging one stressful job for another. Maj. Gen. Christopher Bogdan, the tanker program's PEO, has been reassigned to the role of deputy director of the Joint Strike Fighter program. The F-35 program is led by Navy Vice Adm. David Venlet.

By John Liang
May 11, 2012 at 3:13 PM

The Pentagon this morning released the final interim rule for the DOD-DIB Voluntary Cyber Security and Information Assurance (CS/IA) Program. According to a Defense Department statement:

The Department of Defense in partnership with the Department of Homeland Security announced today important developments in defense industrial base cyber security activities.  After a year-long Defense Industrial Base (DIB) cyber security pilot, the DoD's Voluntary DIB Cyber Security/ Information Assurance (CS/IA) Program is now available to all eligible DIB companies. In addition, DIB Enhanced Cyber security Services (DECS) will become part of the expanded program.

These activities enhance and supplement existing cyber security capabilities to help safeguard sensitive DoD information that is maintained on DIB company unclassified information systems.

"The expansion of voluntary information sharing between the department and the defense industrial base represents an important step forward in our ability to catch up with widespread cyber threats," said Ashton Carter, deputy secretary of defense.  "Increased dependence on Internet solutions have exposed sensitive but unclassified information stored on corporate systems to malicious probes, theft, and attacks.  This expanded partnership between DoD and the defense industrial base will help reduce the risk of intrusions on our systems."

The United States continues to face a significant risk that critical defense information residing on DIB networks and systems can be compromised by malicious cyber actors resulting in potential economic losses or damage to United States national security.  The Department of Defense is actively engaged in multiple efforts to foster mutually beneficial partnerships with the DIB to protect Department of Defense information residing on or passing though DIB systems.

"I am pleased by the deep collaboration between DoD, DHS and DIB partners.  The success of this program encourages us to explore additional ways to enhance the protection of defense industry networks and DoD information," said Carter.  "Shared information between DoD, DHS and the defense industrial base can help us defend against the ever-growing threat of cyber attacks."

These expanded partnering opportunities will advance and support the administration's efforts to improve the cyber security posture of both public and private critical infrastructure.

Click here to view the final rule.

By John Liang
May 10, 2012 at 6:29 PM

The Air Force is getting a new top military officer.

Defense Secretary Leon Panetta announced during a Pentagon news briefing this afternoon that President Obama has nominated Air Force Gen. Mark Welsh to succeed Gen. Norton Schwartz as the service's next chief of staff.

According to his official biography, Welsh is serving as head of U.S. Air Forces in Europe, Air Component Command and director of the Joint Air Power Competency Center at Ramstein Air Base in Germany.

A little bit more from Welsh's bio:

He is responsible for Air Force activities, conducted through 3rd Air Force, in an area of operations covering almost one-fifth of the globe. This area includes 51 countries in Europe, Asia and the Middle East, and the Arctic and Atlantic oceans with a total population reaching nearly one billion people speaking more than 80 languages. He also has administrative control of 17th Air Force, providing support, logistics and resources to U.S. Africa Command.

General Welsh was born in San Antonio, Texas. He entered the Air Force in June 1976 as a graduate of the U.S. Air Force Academy. He has been assigned to numerous operational, command and staff positions. Prior to his current position, he was the Associate Director of the Central Intelligence Agency for Military Affairs, Central Intelligence Agency, Washington, D.C.

By John Liang
May 10, 2012 at 3:32 PM

If at first you don't succeed, try and try again.

A Standard Missile-3 Block 1B interceptor successfully shot down a target missile early this morning over the Pacific Ocean, according to a Missile Defense Agency statement.

This was the second intercept test of the SM-3 Block 1B. In September, the system failed to intercept the target.

Here's the MDA statement:

At 8:18 p.m. Hawaiian Standard Time (2:18 a.m. EDT May 10) the target missile was launched from the Pacific Missile Range Facility, located on Kauai, Hawaii. The target flew on a northwesterly trajectory towards a broad ocean area of the Pacific Ocean. Following target launch, the USS LAKE ERIE detected and tracked the missile with its onboard AN/SPY-1 radar. The ship, equipped with the second-generation Aegis BMD 4.0.1 weapon system, developed a fire control solution and launched the Standard Missile-3 (SM-3) Block IB interceptor.

The USS LAKE ERIE continued to track the target and sent trajectory information to the SM-3 Block IB interceptor in-flight. The SM-3 maneuvered to a point in space, as designated by the fire control solution, and released its kinetic warhead. The kinetic warhead acquired the target, diverted into its path, and, using only the force of a direct impact, engaged and destroyed the threat in a hit-to-kill intercept.

Today's event, designated Flight Test Standard Missile-16 (FTM-16) Event 2a, was the first successful live fire intercept test of the SM-3 Block IB interceptor and the second-generation Aegis BMD 4.0.1 weapon system. Previous successful intercepts were conducted with the Aegis BMD 3.6.1 weapon system and the SM-3 Block IA interceptor, which are currently operational on U.S. Navy ships deployed across the globe.

Aegis BMD 4.0.1 and the SM-3 Block IB interceptor improve the system's ability to engage increasingly longer range and more sophisticated ballistic missiles that may be launched in larger raid sizes. The SM-3 Block IB interceptor features a two-color infrared seeker, which improves sensitivity for longer-range target acquisition and high-speed processing for target discrimination. The SM-3 Block IB interceptor also features an upgraded onboard signal processor and a more flexible throttleable divert and attitude control system to maneuver the IB interceptor to intercept.

Initial indications are that all components performed as designed. Program officials will conduct an extensive assessment and evaluation of system performance based upon telemetry and other data obtained during the test.

FTM-16 Event 2a is the 22nd successful intercept in 27 flight test attempts for the Aegis BMD program. Across all Ballistic Missile Defense System programs, this is the 53rd successful hit-to-kill intercept in 67 flight test attempts since 2001.

InsideDefense.com reported earlier this week that lawmakers had approved a Pentagon request to shift more than $300 million between missile-defense accounts to support immediate needs, including funding required to avoid a stop-work order on the Next Generation Aegis Missile -- a weapon that figures prominently in the Obama administration's plan to defend Europe from Iranian missiles. Further:

On April 6, Pentagon Comptroller Robert Hale sent lawmakers a $311.5 million reprogramming request to shift fiscal year 2012 missile defense funding "in support of higher-priority items based on unforeseen military requirements." Lawmakers trimmed the proposal by $5 million, allowing the Missile Defense Agency to proceed with $306.5 million of the requested account transfers.

The reprogramming will also forestall a stop-work order the Pentagon warned could come this month for the SM-3 Block 1B missile development program, which needed an additional $149 million.

Richard Lehner, a Missile Defense Agency spokesman, said the threatened stop-work orders have been avoided. "We received approval from the four committees to reprogram funds for the two programs," Lehner told InsideDefense.com in a statement today.

Three of the four defense committees that reviewed the reprogramming request denied $5 million of the Pentagon's proposal to shift $20 million to advanced technology development funding for the Next Generation Aegis Missile.

In April 2011, the Pentagon awarded Boeing, Lockheed Martin and Raytheon contracts worth roughly $42 million each to begin early work on developing draft missile configurations and conducting studies on a Standard Missile-3 Block IIB, dubbed the Next Generation Aegis Missile.

Last fall, Congress dramatically trimmed the Pentagon's $123.5 million FY-12 request for the program to just $13.4 million, transferring the balance to other missile projects. "The intent [of the transfer] was to leave enough funding in the Next Generation Aegis Missile program for three contractors to support" the ongoing concept definition and program planning effort, the reprogramming states.

"A recent assessment determined that the remaining funding is insufficient to sustain three contractor teams in accordance with the approved acquisition strategy," it continues. "Funds are required by May 1, 2012, to avoid a stop-work." Lawmakers approved the reprogramming of $15 million for this effort.

MDA requested $244 million for the SM-3 Block IIB program in FY-13, a down payment on planned investments of $1.9 billion for Next Generation Aegis Missile development through FY-17. The Obama administration wants the hit-to-kill missile -- designed to destroy "first-generation" intercontinental ballistic missiles early in flight -- fielded in the "2020 time frame." The missile is envisioned to be deployed as part of the final stage of the United States' European Phased Adaptive Approach to defending against Iranian missiles.

Lawmakers also approved a $149 million transfer to the Aegis Ballistic Missile Defense research and development account. According to the reprogramming, the funds "are required for the return-to-flight testing for the SM-3 Block IB missile." A flight-test failure of the SM-3 Block IB last September prompted Pentagon officials to suspend a planned production decision for the missile until it returns to flight.

"Funds are required on May 1, 2012, in order to avoid a stop-work situation and continue the re-work and testing of the SM-3 IB missile to support return-to-flight," the reprogramming states.

Two more intercept attempts are scheduled for this calendar year, according to John Rood, vice president of business development for Raytheon, the company that builds the SM-3 system. As Inside Missile Defense reported last month:

Rood said during a March 21 press briefing they were "pleased" at the way the throttling divert and attitude control system (TDACS) performed during the test. TDACS and a seeker are both new additions to the SM-3.

"We learned . . . a number of other things about the system," he said.

SM-3 Block IB is part of the second phase of the Obama administration's European Phased Adaptive Approach -- the plan for defending the continent from ballistic missiles. It is part of the Aegis Ashore program, which combines Aegis Ballistic Missile Defense System with a ground-launched SM-3.

There will be three FTMs this year: one in the second, third and fourth quarters.

As part of phase four of the PAA, SM-3 Block IIB will counter regional, intermediate-range ballistic missiles. It will be integrated in the Aegis Weapon System using Aegis BMD 5.1.

SM-3 Block IIB will be deployed from both land and at sea in the initial operating configuration, Rood said. Raytheon is one of three contractors competing in the SM-3 Block IIB competition. In a Jan. 30 Federal Business Opportunities notice, MDA stated it will issue a request for proposals for the missile product development phase.

By John Liang
May 10, 2012 at 12:05 PM

Sen. Mark Udall (D-CO) will look to include provisions of a military-focused clean energy bill in the fiscal year 2013 defense authorization bill when the measure is marked up in the Senate Armed Services Committee later this month, according to a story in InsideEPA.com's Clean Energy Report:

The senator discussed the Department of Defense Energy Security Act (DODESA) at a May 9 gathering of industry and government officials hosted by the American Council for Renewable Energy (ACORE).

ACORE is hosting a series of forums over the next six to 12 months as part of a discussion with the military to devise recommendations that allow industry to accelerate the deployment of clean energy using DOD as a means of commercializing and expanding the use of renewable energy.

Udall said DODESA would augment the ACORE effort by expanding the use of renewables on bases through studies and pilot programs, while establishing efficiency mandates through programs such as "net-zero" energy buildings, which blend aggressive energy efficiency standards with the deployment of renewable power generation.

Udall is a member of the Senate Armed Services Committee and the Energy & Natural Resources Committee. He said that he will be offering the bill -- or select portions of it -- as amendments during the May 22-23 Armed Services Committee markup.

Udall told ACORE members that recent GOP attacks on DOD support for renewables are "slowing down our efforts" to address clean energy and energy security -- which he said is not only about cleaner air, but also about saving lives in the field. He warned that some in Congress want to pull back funds from the military efforts to increase efficiency and clean energy.

Nevertheless, "while Congress drags its feet . . . the military is charging ahead," he said, investing in biofuels and focusing on "non-petroleum" fuels.

Udall last year introduced DODESA to assist the military in meeting its goal of eliminating its dependence on fossil fuels through the deployment of solar energy, aggressive efficiency practices at bases and installations, and the use of fuel-efficient vehicles and biofuels.

Udall urged ACORE members to urge lawmakers to support the energy provisions of DODESA as the NDAA is being marked up this month.

Separately, the House Armed Service Committee on May 9 began marking up its version of the NDAA. It was unclear at presstime if the House companion version of Udall's bill would be offered as an amendment by its sponsor, Armed Services ranking member Adam Smith (D-WA).

Support For Production Tax Credit

ACORE president -- and former Navy vice admiral -- Dennis McGinn told reporters that his organization will continue to support legislation that extends the production tax credit (PTC) for renewables before it runs out at the end of the year. He said Congress also needs to re-institute the 1603 Treasury grant program for renewables, which was phased out under the stimulus law but was responsible for doubling the amount of renewable energy on the grid in the last two years.

Udall said it is important to extend the PTC before the end of the year to match industry construction timelines that look at six- to12-month planning horizons.

Udall also said Senate Energy & Natural Resources Committee Chairman Jeff Bingaman (D-NM) plans to hold a hearing on his bill to establish a clean energy standard (CES). He called the bill a "marker," and said it will be something to consider in 2013. He said there are problems in the bill that still must be worked out, including how efficiency can be counted toward the CES targets. He said he does not see it moving forward without the efficiency fix.

In related news, the House Armed Services Committee yesterday voted to ban the Defense Department from buying or producing alternative fuels if they cost more than fossil fuels. As InsideDefense.com reported:

The amendment, which was approved during the full committee's consideration of the fiscal year 2013 defense authorization bill, would ban "any alternative fuel if the cost . . . exceeds the cost producing or purchasing a traditional fossil fuel that would be used for the same purpose."

Rep. Mike Conaway (R-TX) offered the amendment, saying the Navy was spending too much money on developing biofuels for the "Great Green Fleet." He cited comments by Navy Secretary Ray Mabus suggesting that it would cost $5 million to fuel F/A-18 Hornets during the upcoming Rim of the Pacific exercise.

Committee Ranking Member Adam Smith (D-WA) called the proposed move a short-term money saver that would take away the Navy's ability to control its energy usage and spending well into the future. "In the short term, yes, those options cost more money," Smith said, but "in the long term you're continuing the addiction to something that’s going to drive up cost."

By John Liang
May 10, 2012 at 12:00 PM

Defense Secretary Leon Panetta yesterday stumped on behalf of ratifying the U.N. Convention on the Law of the Sea. Here's an excerpt from a speech he gave at a symposium in Washington:

The time has come for the United States to have a seat at the table, to fully assert its role as a global leader, and accede to this important treaty.  It is the bedrock legal instrument underpinning public order across the maritime domain.  We are the only permanent member of the U.N. Security Council that is not a party to it.  China, France, Russia, other countries, Germany, India, 161 countries have approved this treaty.  We are the only industrialized country in the world that has not approved it.

This puts us at a distinct disadvantage, particularly when it comes to disputes over maritime rights and responsibilities when we have to engage with the 161 countries, including several rising powers, which are party to that treaty.

In years past, several Senate committees have examined the Convention and its various elements in hearings, and earlier Committee votes were approved by large bipartisan majorities.

Accession also has broad support among major U.S. industries.  This is an important point.  This is something that is not just supported by the diplomatic community or the environmental community.  This is also supported by the business community.  Companies that are dealing with offshore energy, shipbuilding, commercial shipping, communications companies, on and on and on.  Industries that have to deal with our offshore resources.  They need this treaty in order to be able to do their business and to effectively accomplish their goals.  The same is true for national security.

You have already heard the importance that Chairman Marty Dempsey attaches to U.S. ratification of the treaty.  His views are echoed by the senior leadership through the department of Defense: the Chief of Naval Operations, the Commandant of the Marine Corps, and the Coast Guard Commandant.

. . . And here's an Inside the Navy story from last year on the Law of the Sea:

Obama Administration To Push Law Of The Sea Treaty In Senate This Year

By Christopher J. Castelli
May 9, 2012 at 10:19 PM

British defense minister Phillip Hammond is slated to announce Thursday that the United Kingdom will drop plans to buy the F-35C aircraft-carrier variant of the Joint Strike Fighter and opt instead for the F-35B short-takeoff-and-vertical-landing variant, according to published reports. The Daily Telegraph reported today that Hammond "will claim the decision will save hundreds of millions of pounds" and help the U.K. military.

The potential for such a switch had been widely reported in recent weeks as British officials grew concerned about the cost of converting one of the Queen Elizabeth-class carriers to handle the F-35's carrier variant. In March, Peter Luff, the U.K. minister for defense equipment acknowledged the government was "assessing the time and cost implications" of the previous British decision to opt for the F-35C rather than the F-35B.

By John Liang
May 9, 2012 at 12:00 PM

The House Armed Services Committee is scheduled to mark up the fiscal year 2013 defense authorization bill today. Included in that legislation is $680 million in funding for the Israeli Iron Dome anti-rocket and -artillery system, according to a statement released yesterday afternoon by Rep. Howard Berman (D-CA). As Berman says in the statement:

Only weeks ago, a massive barrage of rockets was fired from Gaza at Israeli population centers by Islamic Jihad and other terrorists. But unlike previous incidents where terrorists targeted Israel, the Iron Dome anti-missile system -- funded in part by the United States -- changed the rules of the game. In fact, Iron Dome intercepted a remarkable 90 percent of incoming rockets aimed at once-defenseless population centers.

Israel has three operational Iron Dome batteries in Israel, "but more are needed to protect all of Israel's citizens," according to Berman's statement.

On March 5, Berman and Reps. Eric Cantor (R-VA), Steny Hoyer (D-MD) and Ileana Ros-Lehtinen (R-FL) introduced a bill that would "express the sense of Congress regarding the United States-Israel strategic relationship, to direct the president to submit to Congress reports on United States actions to enhance this relationship and to assist in the defense of Israel, and for other purposes." The legislation will be introduced on the House floor today, according to Berman.

By Maggie Ybarra
May 8, 2012 at 5:06 PM

Hawker Beechcraft is taking a public swing at the Air Force, saying that it is "profoundly disappointed" that the service has allowed "antiquated pilot accommodation standards" to plague a revised request for proposals that would supply 20 aircraft to Afghanistan.

In a May 8 statement, the company strikes out at the new RFP, which was issued on May 4. The Air Force reissued the RFP for the $355 million Light Air Support (LAS) contract after Hawker Beechcraft filed a lawsuit against the Air Force with the U.S. Court of Federal Claims in late December. Hawker filed the lawsuit after the service eliminated it from the competition for the contract in November. The service initially awarded the contract to the team of Sierra Nevada Corp. and Brazilian company Embraer but promptly revoked it after the lawsuit was launched, citing issues with its source-selection process.

Hawker Beechcraft's concern over the ejection-seat standards has cropped up within the past month. Company Chairman Bill Boisture discussed the issue of substandard ejection seats with Inside the Air Force in mid-April, saying the ejection-seat safety requirements for the 20 aircraft were lower than what they have been for "every other fixed-wing solicitation the Air Force has put out."

"We are profoundly disappointed to see in the amended RFP that the [Air Force] continues to permit antiquated pilot accommodation standards for ejection seat equipped aircraft which can place both [the Air Force] and partner nation pilots at unnecessary and higher risk," today's statement reads. "Those standards were developed by the [Air Force] to protect their own male and female pilot population, and every aircraft acquired by the [Air Force] should meet those modern safety standards."

In early April, House Armed Services Committee member Tim Griffin (R-AR) sent a letter to Air Force Secretary Michael Donley seeking to confirm that the Air Force had plans "to meet modern anthropometric accommodation requirements for LAS ejection seats."

UPDATE (1:50 p.m.): Air Force spokeswoman Jennifer Cassidy declined to comment.

UPDATE (3:45 p.m.): Here's the text of Rep. Griffin's just-released statement:

After a careless selection process, the Obama Administration was forced to reverse its award decision, yet it continues to allow a pilot ejection seat requirement that is below DOD's own standard.  I believe that we should provide the very best light attack platform, including the same ejection seat safety standards we expect in our other front line Air Force aircraft.

By Sebastian Sprenger
May 8, 2012 at 3:57 PM

It's beginning to look dicey for the Medium Extended Air Defense System, after House defense appropriators yesterday zeroed out the administration's $400 million request for the program. That means a request by six lawmakers, forwarded in an April 20 letter to House Appropriations defense subcommittee Chairman Bill Young (R-FL), apparently fell on deaf ears.

Pentagon leaders want one more year of MEADS funding to bring development to a close. An intercept test with MEADS, scheduled for November, will take place regardless of what Congress ultimately decides to do with the program's fiscal year 2013 budget, a Lockheed Martin spokeswoman has said.

By John Liang
May 8, 2012 at 12:00 PM

The Pentagon yesterday afternoon announced a modification to the multibillion-dollar F-35 Joint Strike Fighter low-rate initial production contract.

Here are the details, according to the Defense Department contract announcement:

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $237,740,000 modification to the previously awarded fixed-price-incentive-fee (firm target) F-35 Lightning II Joint Strike Fighter (JSF) Low Rate Initial Production IV contract (N00019-09-C-0010) for changes to the configuration baseline hardware or software resulting from the JSF development effort.  This modification increases the concurrency cap for the U.S. Marine Corps and United Kingdom short take-off vertical landing aircraft; Air Force and Netherlands conventional take-off and landing aircraft; and Navy carrier variant aircraft.  The concurrency cap establishes the threshold at or under which the contractor is obligated to incorporate government-authorized changes.  Work will be performed in Fort Worth, Texas, and is expected to span multiple years.  Contract funds in the amount of $222,600,000 will expire at the end of the current fiscal year.  This contract modification combines purchases for the Navy ($153,200,000; 64.5 percent); Air Force ($69,400,000; 29 percent); the United Kingdom ($8,200,000; 3.5 percent); and the Netherlands ($6,940,000; 3 percent).  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

For more news on the concurrency issue, check out InsideDefense.com's recent coverage:

DOD Expects Fourth JSF Production Batch To Exceed Target Cost By $534 Million (DefenseAlert, April 18)

The price tag for the Joint Strike Fighter's fourth production run could be $534 million higher than originally expected, a 12.5 percent increase propelled by an estimated $289 million in additional costs to correct deficiencies uncovered during F-35 flight testing, according to the Defense Department.

In testimony prepared for Congress last month, senior Pentagon acquisition officials -- including acting acquisition chief Frank Kendall and Vice Adm. David Venlet, director of the F-35 program office -- disclosed less than half the potential costs DOD expects will be required to procure the low-rate initial production (LRIP) Lot 4 aircraft.

Their testimony, submitted for a March 20 hearing of a House Armed Services air and land subcommittee, acknowledged $245 million in projected cost overruns to build the aircraft but provided no estimate for concurrency costs -- must-pay bills to address shortcomings identified during flight tests. Lawmakers did not ask about concurrency costs during the hearing.

In response to questions from InsideDefense.com, the F-35 Joint Program Office outlined potential costs beyond the original $3.4 billion deal with prime contractor Lockheed Martin for LRIP Lot 4, a batch of 32 aircraft -- including one jet each for Great Britain and the Netherlands.

"For LRIP [4], the concurrency estimate is currently $289M," program office spokesman Joe DellaVedova wrote in an email. The production run -- using funds appropriated in fiscal year 2010 -- is 57 percent complete, he added. The government is responsible for all LRIP Lot 4 concurrency costs, an arrangement the Pentagon is working to change in the Lot 5 contract that is still being negotiated with Lockheed Martin.

The projected concurrency costs plus the forecast cost overruns would total $534 million.

Asked why Pentagon officials did not mention this figure to Congress last month, Pentagon spokeswoman Cheryl Irwin said, "We don't have a budget quality estimate of concurrency costs for LRIP 4. We have indicated to Congress that there will be additional costs for concurrency."

Concerns about concurrency costs were "a major basis" for the Pentagon's decision in February to defer production of 179 F-35 aircraft beyond the fiscal year 2013 to 2017 spending plan, she said. . . .

Pentagon Finds $258 Million To Buy Back Two F-35 Jets Cut Last Fall (DefenseAlert, April 16)

The Pentagon on Friday announced a $258 million contract to buy two additional F-35 aircraft using money found during an end-of-fiscal-year-budget review, a sum nearly equal to the Defense Department's $263 million reprogramming request last summer denied by Congress that aimed to siphon funds from other Navy and Air Force accounts to finance F-35 cost growth.

The purchase of the two additional aircraft, one Air Force conventional-takeoff-and-landing variant and one Navy aircraft-carrier variant, partially reinstates four jets cut in October from the planned 34-aircraft fifth production lot (DefenseAlert, Oct. 26, 2011). Those reductions were made to help finance a $771 million bill tabulated last year to pay "over-target and concurrency" costs for the first three Joint Strike Fighter early production runs.

"In the fall of 2011, estimates for over-target and concurrency costs originally indicated the government could afford to procure 30 aircraft; however, as the program received greater fidelity on cost overruns and conducted its end-of-fiscal-year budget reviews, there were enough funds to procure two additional F-35s," Joe DellaVedova, spokesman for the F-35 program office, said today in response to questions from InsideDefense.com.

The revised profile for the fifth low-rate production lot -- LRIP Lot 5 -- is 22 F-35A conventional-take-off-and-landing variants, three F-35B short-takeoff-and-vertical-landing variants, and seven F-35C aircraft-carrier variants.

The Pentagon and F-35 prime contractor Lockheed Martin are expected in "late spring" to definitize terms for the fifth production run contract; DOD is working for the first time to get Lockheed to assume greater responsibility for F-35 concurrency costs. . . .

DOD To 'Dial' Back F-35 Production Unless Lockheed Demonstrates Progress (DefenseAlert, March 21)

The Pentagon wants a contractual framework for the next two rounds of F-35 purchases from Lockheed Martin that increase government leverage, limiting the sixth production run to 26 jets -- 20 percent below the 31 authorized and appropriated in fiscal year 2012 -- until the prime contractor demonstrates progress on specific criteria.

In joint testimony prepared for the March 20 hearing of the House Armed Services tactical air and land forces subcommittee, the three senior Pentagon officials responsible for the Joint Strike Fighter program disclosed that the notional contract structure for lots 6 and 7 of Joint Strike Fighter low-rate initial production will allow the Defense Department to increase aircraft orders as rewards for improved contractor performance.

"This strategy provides a means to have control -- a 'dial' -- on production that is informed by demonstrated development performance against the 2012 plan and concurrency cost risk-reduction," according to the prepared statement of Frank Kendall, the acting under secretary of defense for acquisition, technology and logistics; David Van Buren, the Air Force acquisition executive; and Vice Adm. David Venlet, the F-35 program office director.

"We believe our plan for negotiations for LRIP 6 and 7 will allow us to control production quantity based on the performance of the development program," they wrote. "It is important that Lockheed Martin demonstrate performance and help us to establish the confidence that the F-35 is a stable and capable platform." . . .

By Christopher J. Castelli
May 7, 2012 at 7:00 PM

Today's visit to the Pentagon by China's minister of national defense, Gen. Liang Guanglie, marks the first time in nine years that a Chinese defense minister has visited the building, a senior defense official told reporters. Defense Secretary Leon Panetta will meet with Liang, the official said, calling it a "very important visit" and not merely symbolic.

The official said the talks are aimed at boosting cooperation, building trust and reducing differences between the two countries. North Korea is likely to come up in discussions about regional security, the official said, noting potential U.S. arms sales to Taiwan and cybersecurity are also likely discussion topics. The official declined to provide an overview of the specific agenda for the session. Panetta and Liang will also dine together.

On May 5, Liang visited a naval base in San Diego, CA. He is also slated this week to visit U.S. Southern Command headquarters, FL; Camp Lejeune, NC; Ft. Benning, GA; Seymour Johnson Air Force Base, NC; and the United States Military Academy at West Point, NY.

Panetta looks forward to visiting Beijing, the senior defense official said.