The Insider

By John Liang
December 9, 2010 at 7:18 PM

The Pentagon recently released a report on its plan to improve its business operations.

Dubbed the "Fiscal Year 2011 Enterprise Transition Plan," the report "focuses specifically on those business systems that are new or being modernized and provides the Department's roadmap accordingly. It identifies the governance and strategic framework DoD uses to manage its investments, describes how those investments are part of the Department's overarching management reform efforts, outlines key improvement initiatives for FY11 and provides specific information regarding each of its business system investments." Further:

The imperative to improve the Department’s business operations has never been greater. Secretary of Defense Gates and Deputy Secretary Lynn have clearly articulated the pressing need for reform, driving action across all business areas such as acquisition and logistics, finance, real property and personnel. The people and processes that make up each of these business areas are supported by the Department’s backbone of business Information Technology (IT). As current technology becomes obsolete, the Department must make targeted investments to modernize its existing business systems or develop and field new ones.

In FY11, the Department expects to spend nearly $7 billion on business systems. Approximately two-thirds of this amount is to sustain existing systems and one-third is for development or modernization efforts.

By John Liang
December 9, 2010 at 4:55 PM

Senate Armed Services Committee Chairman Carl Levin spoke on the Senate floor this morning in favor of passing the long-awaited fiscal year 2011 defense authorization bill. Here are some excerpts from an "unofficial" transcript of Levin's remarks released by his office:

. . . It will provide our troops with the equipment and support they need to continue on the battlefield in Iraq and Afghanistan. For example, the bill would enhance the military's ability to rapidly acquire and field new capability and respond to urgent needs on the battlefield by expanding the department of defense's authority to waive statutory requirements when needed to save lives on the battlefield. The bill will fund the president's request for $11.6 billion to train the Afghan army and police to prepare them to take over by the July 2011 date established by the president for the beginning of reductions in U.S. forces at that time.

The bill will extend for one more year the authority for the Department of Defense to transfer equipment coming out of Iraq as our troops withdraw -- and to transfer that equipment to the security forces of Iraq and Afghanistan providing an important tool for our commanders looking to accelerate the growth and capability of these security forces. The bill would promote the Department of Defense's cybersecurity and energy security efforts, two far-reaching initiatives that should strengthen our national defense and our nation.

If we fail to act on this bill, madam president, we will not be able to provide the Department of Defense with critical new authority and extensions of existing authorities that it needs to safeguard our national security. For example, without this bill the Department of Defense will either lose the authority that it requested to support counter-drug activities of foreign governments, use premium pay to encourage civilian employees to accept dangerous assignments in Iraq and Afghanistan and provide assistance to the Yemeni counterterrorism unit. It could have serious consequences for the success or failure of ongoing military operations around the world.

. . . Now, despite the differing views over [the Don't Ask Don't Tell provision] and other provisions where there are differences of opinion, we should not deny the Senate the opportunity to take up this bill, which is so essential for the men and women in the military, because we disagree with some provisions of the bill. These are legitimate issues for debate. And I believe the Senate should debate them. But the only way we can debate and vote on these issues is if the Senate proceeds to the bill. The disputed provisions can be addressed through the amendment process.

. . . We have currently 50,000 U.S. Soldiers, Sailors, Airmen, and Marines on the ground in Iraq and twice that many, roughly, in Afghanistan. While there are some issues on which we may disagree, we all know that we must provide our troops with the support that they need as long as they remain in harm's way. Senate action on the National Defense Authorization Act for fiscal year 2011 will improve the quality of life of our men and women in uniform. It will give them the tools that they need to remain the most effective fighting force in the world. And, most importantly of all, it will send an important message that we, as a nation, stand behind them and appreciate their service.

Now, Madam President, this bill runs some -- excuse me -- some 850 pages. the House bill -- the counterpart bill -- runs more than 1,000 pages. Even if we get 60 votes today to invoke cloture on the motion to proceed to this bill, and even if we're able to consider amendments and pass this bill in a few days, it will be a possibly insurmountable challenge to work out all of the differences with the House.

Over the last 10 years, Madam President, it has taken an average of 75 days to conference the Defense Authorization Bill with the house after we pass it. If we don't proceed on this bill this week, then invoking cloture sometime next week, even if we can do it, it would be a symbolic victory. And I don't believe that there would be enough time to hammer out a final bill before the end of this session.

I don't believe in symbolic victories. This bill is a victory for the people in uniform. It's essential for the people in uniform. We should not act symbolically in their name and for their sake we should act in reality. But the only way that this will be real and that the repeal of “don't ask, don't” tell, assuming we continue to keep it in the bill, will be real is if we proceed to the bill this week. We cannot and should not delay this vote any longer. I thank the Presiding Officer. I yield the floor and note the absence of a quorum.

By John Liang
December 9, 2010 at 4:42 PM

Fifteen retired generals and admirals are adding their voices to the chorus calling for swift ratification of the follow-on Strategic Arms Reduction Treaty. In a letter to the Senate released today via the Truman National Security Project, the retired senior officers write:

Russia and the United States possess more than 90 percent of the world’s nuclear weapons. Yet, due to the START Treaty’s expiration in December 2009, for the first time in 15 years no American is monitoring Russia’s deployed nuclear arsenal and ensuring that those weapons are well-guarded and properly secured. Ensuring American security means passing the treaty needed to put U.S. boots back on the ground. The ratification of the New START Treaty—which would reestablish a tough system for U.S. oversight of Russian strategic nuclear weapons first proposed by President Reagan—is imperative to our national security.

The New START Treaty will empower the United States to confront the threats of today and tomorrow. We cannot afford reckless political delay.

The New START Treaty will allow us to monitor deployed Russian strategic nuclear weapons while maintaining our capabilities and continuing to develop missile defense technology. Without the intelligence provided by START’s inspections program, we leave ourselves blind to possible increases in Russian deployed strategic nuclear weapons, and more open to the threat of terrorists acquiring nuclear material.

Leaders from both sides of the aisle have joined our military and national security leaders in underscoring the serious threat posed by continued delay. The swift ratification of the New START Treaty has the unanimous support of America’s military leadership, including the Secretary of Defense, Chairman of the Joint Chiefs of Staff, all of the service chiefs, and the commander of the U.S. Strategic Command. We, as senior retired military leaders, stand with them.

We call on the Senate to carefully weigh the wisdom and advice of our senior defense leaders, both civilian and military, as well as a knowledgeable, broad, and bipartisan array of national security experts. The Senate must move decisively to ratify the New START treaty before the end of 2010. For the sake of America’s global leadership role and future security, we cannot afford to delay.

Lieutenant General John Castellaw, USMC (Ret.)

Lieutenant General Donald Kerrick, US Army (Ret.)

Vice Admiral Dennis V. McGinn, US Navy (Ret.)

Lieutenant General Norman Seip, USAF (Ret.)

Major General Roger Blunt, US Army (Ret.)

Major General George Buskirk, US Army (Ret.)

Major General Donald Edwards, US Army (Ret.)

Major General Paul Monroe, US Army (Ret.)

Rear Admiral Stuart Platt, US Navy (Ret.)

Rear Admiral Alan Steinman, USCG/USPHS (Ret.)

Brigadier General John Adams, US Army (Ret.)

Brigadier General Steven Anderson, US Army (Ret.)

Brigadier General Stephen Cheney, USMC (Ret.)

Brigadier General Keith Kerr, CSMR (Ret.)

Brigadier General Phil Leventis, USAF (Ret.)

By John Liang
December 8, 2010 at 6:47 PM

House Republicans today formally elected Armed Services Committee Ranking Member Buck McKeon (R-CA) to become the panel's chairman when Congress reconvenes next year. Among his priorities, according to a statement from his office, are:

  • Ensuring our troops deployed in Afghanistan, Iraq and around the world have the equipment, resources, authorities, training and time they need to successfully complete their missions and return home;
  • Building on the Armed Services Committee’s strong bipartisan tradition of providing our warfighters and their families with the resources and support they need; and
  • Investing in the capabilities and force structure needed to protect the United States from tomorrow's threats, while mandating fiscal responsibility, accountability and transparency from the Department of Defense.

For more on McKeon's plans for the next Congress, check out his Nov. 15 speech at the Foreign Policy Initiative's 2010 Leadership Forum.

By John Liang
December 8, 2010 at 4:52 PM

House Homeland Security Committee Ranking Member Peter King (R-NY) has been elected as chairman of the panel by his Republican colleagues. According to a statement issued this morning, King's priorities for the committee are:

  • Conducting effective oversight of Department of Homeland Security operations and ways to give the intelligence community and law enforcement agencies the tools they need to identify and combat domestic radicalization;
  • Stopping the Obama Administration’s plans to transfer Guantanamo detainees, like admitted 9/11 mastermind Khalid Sheik Mohammed and his co-conspirators, to the U.S. and put them on trial in civilian courts, and holding hearings on the President’s plans to close Guantanamo;
  • Holding hearings on the attack at Fort Hood;
  • Working with the Department of Homeland Security to improve cargo security on passenger planes and on cargo-only planes;
  • Enacting additional border security legislation to curb illegal immigration;
  • Strengthening the Securing the Cities Initiative to protect more Americans from radiological and nuclear devices;
  • Bolstering national cybersecurity by fortifying the defenses of federal networks and promoting partnerships with the private sector to protect against cyberattack;
  • Strengthening communications for our nation’s first responders;
  • Passing a comprehensive Department of Homeland Security authorization bill to provide DHS with necessary guidance, tools, and resources to help protect our homeland from terrorist attack.
By Christopher J. Castelli
December 8, 2010 at 4:46 PM

Language that would approve the Navy's new dual-buy approach for the Littoral Combat Ship program has been included in the House's draft continuing resolution for funding the government until Sept. 30, 2011.

Section 2314 of the continuing resolution states, "The Secretary of the Navy may award a contract or contracts for up to 20 Littoral Combat Ships subject to the availability of appropriated funds for such purpose."

The House could vote on the continuing resolution today.

By John Liang
December 8, 2010 at 4:30 PM

The Defense Acquisition University has a new president.

According to a Dec. 6 memo by Principal Deputy Under Secretary of Defense for Acquisition, Technology and Logistics Frank Kendall, Katrina McFarland has been selected as the DAU's next head. "She comes with outstanding credentials and a wealth of experience at a very critical time for the department," Kendall writes. "In this capacity, Ms. McFarland will be responsible for continuing and building upon DAU's outstanding reputation as DoD's primary learning institution for the 147,000 members of the Defense Acquisition Workforce while overseeing the development of new curriculum and learning opportunities that facilitate implementation of the Under Secretary of Defense's (Acquisition, Technology and Logistics) 'Better Buying Power' initiatives."

McFarland previously worked for the Missile Defense Agency, where she was MDA's director for acquisition. "In this capacity, she functioned as the MDA Acquisition Executive decision authority to define the policies and process activities to execute a single Ballistic Missile Defense System research, development and test program," Kendall's memo states.

By John Liang
December 7, 2010 at 6:50 PM

In response to queries from an Oregon congressman, the Defense Department has released documents indicating that more than 120 of its contracts contain indemnification clauses under which the U.S. government would cover liability costs that contractors could incur related to a variety of work, including some environmental services in the United States and in overseas operations, Defense Environment Alert reports this morning.

Further:

The release of information from a DOD data call in response to the congressional inquiry reveals indemnification clauses for a range of work, including for firms operating hazardous material facilities in the United States and to recover potential radioactive materials during the Iraq invasion, in addition to coverage for the makers of anthrax and smallpox vaccines, according to a Dec. 2 press release from Rep. Earl Blumenauer (D-OR), the congressman who months ago launched an inquiry into DOD's indemnification contract clauses. In the United States, indemnification clauses have been included in contracts to cover chemical weapons storage and destruction activities, according to the documents.

The probe has been driven by Blumenauer's concern that a defense firm -- Kellogg, Brown and Root (KBR) -- could invoke an indemnification clause to require the federal government to absorb the cost of legal claims being made by former National Guard members for exposures to chemical hazards at an Iraq water treatment plant the company oversaw (Defense Environment Alert, Sept. 27). The lawmaker has pressed the Pentagon to declassify the indemnification clause in this contract, which is known as the Restore Iraqi Oil contract, but DOD continues to refuse to do that, he says in the press release. Blumenauer adds that he remains concerned that contracts associated with the Iraq war effort have looser standards of indemnity protection than other DOD contracts.

In response to Blumenauer's inquiry, DOD's acquisition office launched a data call to the military services and other defense agencies to identify indemnification clauses in contracts, any lawsuits that had been filed regarding the contractor's actions, and the amount of money the federal government has paid out in response to the indemnity provisions, according to a Nov. 24 letter from DOD Principal Deputy Under Secretary for Acquisition, Technology & Logistics Frank Kendall. . . .

While the DOD contract summaries "appear to show a diligent, responsible process for work carried out in the United States that protects taxpayers from liability in cases of contractor negligence," it indicates much looser standards for the work done in Iraq, Blumenauer's press release says.

While Blumenauer called the documents release a victory for transparency, he warned that the "documents suggest that contracts associated with our Iraq war efforts may not contain sufficient taxpayer protections in cases of contractor negligence."

"I remain concerned that KBR's contract may be much more loosely drawn, removing incentives for the contractor to behave responsibly and exposing taxpayers to enormous liability and our troops to harm. Why is the Pentagon shielding this contract and protecting KBR?"

Blumenauer vowed to continue to seek declassification.

KBR has previously defended its work done at the Qarmat Ali water treatment plant in Iraq, with a spokeswoman saying that "the record is clear that the Army was to provide a site free of all environmental and war hazards. Once the presence of sodium dichromate was found [at Qarmat Ali], the Army was notified and was fully informed."

By Sebastian Sprenger
December 7, 2010 at 6:15 PM

Officials at the Defense Department and NASA are planning a new collaboration aimed at disseminating environmental data about the Arctic region. The proposed "Arctic Cooperative Environment" joint capability technology demonstration comes embedded in a project called "Partnering Earth Observations for People Living Environmentally," or PEOPLE. Broadly speaking, that effort aims to improve the international sharing of earth observation data, thus enabling partner nations to react to anticipate environmental change, natural disaster and associated humanitarian crises.

As for the Arctic-specific thrust, the goal is to provide the kind of situational awareness up north that is called for in a series of high-level policy documents, like the Quadrennial Defense Review or the Navy's roadmap for operations in the Arctic, according to a briefing from last June that was presented at a U.S. European and African commands science conference. The two commands are co-sponsors of the JCTD, which has yet to be formally blessed by senior Defense Department leaders.

What complicates the PEOPLE/ACE project and other proposed fiscal year 2011 JCTDs is the fact that Congress has yet to pass a defense spending bill. Until that happens, no project is formally approved, a defense official stressed last week.

But ACE passed a key hurdle in July, when Pentagon officials approved it at a so-called JCTD candidate review board, according to Marty Kress, whose Von Braun Center for Science and Innovation in Huntsville, AL, helped put the project together.

The comprehensive June briefing envisions an "open-source web-based Arctic region [and] national decision-support system with integrated data from existing remote sensing, buoy, and in-situ data (e.g. sea ice flow, permafrost melt)."

The document characterizes the project as a "true multi-agency, multi-national, building partnership" effort, with collaboration from Arctic stakeholders Russia and Canada. Beside the goal of tracking environmental conditions, the PEOPLE effort also would enable "expeditionary deployment planning," the briefing states.

By John Liang
December 7, 2010 at 5:57 PM

Sixteen House Republicans are calling on the Senate to delay a vote to ratify the follow-on START Treaty. In a letter to Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY), House Armed Services Committee Ranking Member Buck McKeon (CA), strategic forces subcommittee Ranking Member Mike Turner (OH) and Reps. Roscoe Bartlett (MD), Mac Thornberry (TX), Todd Akin (MO), Joe Wilson (R-SC), Frank LoBiondo (NJ), John Kline (MN), Mike Rogers (AL), Trent Franks (AR), Cathy McMorris Rodgers (WA), Doug Lamborn (CO), Rob Wittman (VA), Duncan Hunter (CA), John Fleming (LA) and Mike Coffman (CO) write that they are "troubled by the administration's push to ratify the New START Treaty amid outstanding concerns regarding Russian intentions, missile defense limitations, and nuclear modernization.

"Given the security implications associated with this treaty and the importance of such a treaty enjoying bipartisan support, we believe the Senate should not be rushed in its deliberations," the letter continues. "Therefore, we urge the Senate not to vote on the New START Treaty in the lame duck congressional session and certainly not until these important security issues are resolved." Further:

There remains a significant divide between Russia and the U.S. on whether New START affects our ability to deploy missiles defenses, particularly long-range missile defenses in Europe. Despite testimony from Administration officials that New START does not limit U.S. missile defenses, Moscow seems to believe it will. Russian officials have declared they would withdraw from the treaty if U.S. missile defense systems are upgraded quantitatively or qualitatively.

Russia also warns that it will build up offensive forces should its 'terms' for a missile defense agreement not be met; all while the Administration seeks to reduce our nuclear forces. We have no insight on what these terms are, nor do we know the exact nature and scope of the missile defense negotiations reportedly occurring between Undersecretary of State Ellen Tauscher and her Russian counterpart, Deputy Foreign Minister Sergei Ryabkov.

We reject the notion that Russia can set terms for our missile defenses.  Iranian and North Korean missile and nuclear programs continue unabated as highlighted by recent events.  Given these threats, upgrades to our homeland missile defense capabilities and funding for missile defenses in Europe will remain top priorities for the House Armed Services Committee.

However, our principal concern is that the Administration might cede to Russian demands and allow Moscow to shape U.S. missile defense plans in exchange for its adherence to New START. This concern is exacerbated by a lack of transparency by the Administration in providing information on the nature of these secretive missile defense discussions. One way to alleviate this concern is for the Administration to provide Congress with the treaty negotiating record -- which Senators have requested on numerous occasions -- so that members can see firsthand how missile defense was discussed within the context of the treaty, as well as documents related to the Tauscher-Ryabkov discussions. In the meantime, we think it unwise to vote on New START until the Congress gains this additional insight and better understands how the impasse on missile defense will affect our long-term security.

We are also deeply concerned about the state of our nation's nuclear enterprise, and whether the Administration will remain committed to nuclear modernization and our nation’s nuclear triad. Reversing the erosion of our nation's nuclear infrastructure -- which the bipartisan U.S. Strategic Posture Commission called 'decrepit' -- will require a comprehensive plan and long-term political and financial support from the Administration and both chambers of Congress.

Our committee recently received an updated '1251 Report' on nuclear modernization.  The report provides glimpses of the Administration’s revised funding requirements based on its Nuclear Posture Review released last spring. However, it is unclear exactly how these additional funds contribute to modernization. For example, over one-third of these funds appear to go towards employee pension plans -- not modernization of the infrastructure or stockpile. Members of the House have yet to be briefed on the updated 1251 Report, and therefore we cannot assess the adequacy of these revised plans and funding requirements. We would hope the Senate would allow for the same due diligence in its oversight of this matter prior to a vote on New START.

As members of the House we will not have the opportunity to vote on the New START Treaty. However, the outcome of the treaty will undoubtedly impact national security policy and investment decisions within our jurisdiction as authorizers of the annual defense bill, and we will be responsible for overseeing its implementation. Because of these roles, we feel compelled to express our concerns.

We are in complete agreement with Senator Kerry who recently told the press, 'The American people want to see Republicans and Democrats working together on behalf of national security.' We believe bipartisanship is possible with good faith and sufficient cooperation among both political parties and the executive and legislative branches of the federal government. The security concerns associated with the New START Treaty are significant and must be addressed. This requires thorough and thoughtful deliberation.  The American people expect this of their government and we owe them nothing less.

By Christopher J. Castelli
December 6, 2010 at 9:20 PM

The American Shipbuilding Association's board of directors announced today its decision to dissolve the organization effective Dec. 31. A review of the organization’s charter and "changes in the industry landscape" persuaded the board that "another approach was needed" to address the industry’s issues in Washington, according to group's statement.

The decision marks the end of the national trade association that represents major U.S. shipbuilders. The association also includes more than 100 companies engaged in the manufacture of ship systems and components, repair and technical services. What will take the organization's place remains to be decided, according to Fred Harris, the association's chairman.

“The structural changes underway in the U.S. shipbuilding industry and the recent decision by Cynthia Brown to step down as president of the association have afforded the opportunity to take a hard look at the direction the industry needs to take in the months and years ahead to ensure our voice is heard in Washington and across the country,” Harris said in the statement. “We concluded that the American Shipbuilding Association had served its purpose and that in light of the structural changes occurring in the industry, a new approach was required going forward. What that approach will look like will be the subject of ongoing discussions among the membership.” The board's statement thanks Brown and her staff for their years of service and "wishes her well as she engages in future opportunities."

By Tony Bertuca
December 6, 2010 at 8:30 PM

Lt. Gen. Michael Vane, the deputy commanding general of Army Training and Doctrine Command and director of the Army Capabilities Integration Center, is responding today to critics at the Lexington Institute who have disparaged the Army's vehicle modernization strategy and, in particular, the new plan for the Ground Combat Vehicle. Lexington COO and defense consultant Loren Thompson has called GCV “doomed” due to what he says are high costs (approximately $10 million per vehicle) and a contract configuration that will disincentive industry.

In a message posted today on the Lexington Institute's blog, Vane argues that the GCV is a “pretty good deal” given the added value of delivering a full squad (nine soldiers) across the full spectrum of operations.

“Affordability arguments are always related to how much money one has and what the effect is on the operation,” Vane wrote. “It is hard to argue that any force other than the Army (which includes Special Forces) does as much engagement with our friends and enemies and makes as much difference. So, $10 million for nine soldiers that actually engage the enemy directly in this conflict and nearly every conceivable conflict in the future is not a pretty good deal? It think it compares very favorably to a joint strike fighter, a littoral combat ship, or a submarine.”

A TRADOC spokeswoman authenticated Vane's blog post today and a link to it was posted on ARCIC's Facebook page.

In the post, Vane also says there should be more optimism about the future of modernization and suggests that industry should “get hungrier” to meet the challenges posed by 21st Century Army modernization.

“Acquisition changes that are occurring will mean more accountability, more real competition, and an increasing awareness of industry's need to change how it operates,” he wrote. “[Industry needs to] get hungrier, perhaps, and pay more attention to global initiatives in other countries that are challenging areas where the United States had held a lead in technology development and innovation.”

Vane also says the Army's vehicle portfolio reviews have resulted in the crafting of a modernization strategy that will assist industry as never before.

“The size of the combat and tactical wheeled vehicle fleets remains fairly constant throughout all this, particularly with the operationalization of the reserve component,” he wrote. “The size of the Army could be an issue in the future, but we are arguing hard to make our 547,000 soldier active-duty component and 1,100,000 soldier total force as effective and efficient as we can, and expect the resulting budget to be fairly flat. This leaves money, increased opportunity for investment, and a more coherent strategy than ever for our industry brethren. That should give rise to a positive view for the industrial base and affordability questions, in my opinion.”

Overall, Vane argues, the Army has a “more coherent modernization strategy today than it had for much of the past decade.”

“The plan has been developed in considerable detail,” he wrote. “It reflects a more or less flat budget and targets for platform costs in quantities driven by best estimates of the available supply of brigade combat teams to meet whatever national strategy evolves. Looking out at possible scenarios and strategies to reflect the range of possible alternate futures and operating environments, we have reversed the flawed approach of trying to optimize for any single possible future and put forth succinctly 'what an Army must do' and how it must do it operationally -- combined arms maneuver and wide area security per our published and widely accepted concepts.”

Vane write that the Army's new combat vehicle and network strategies are “nearly complete, reflecting affordable, integrated plans linked directly to capability gaps in the present force.” He states that the service's tactical wheeled vehicle strategy is “largely complete” and will be finished soon.

By John Liang
December 6, 2010 at 7:37 PM

The Defense Acquisition University is overhauling its contracting curriculum, "the most significant" effort in that area "in nearly two decades," according to a DAU blog post issued last week. It involves Defense Acquisition Workforce Improvement Act of 1990 levels I through III. Specifically:

The effort will involve restructure of existing course assets and development of new learning assets. While a strategic goal of DAU is to "provide an integrated, interactive learning environment that helps acquisition workforce members, teams, and organizations improve acquisition outcomes," the restructure is driven in large measure by direction provided in a memorandum by Dr. Ashton Carter, USD (AT&L), entitled "Better Buying Power: Guidance for Obtaining Greater Efficiency and Productivity in Defense Spending" dated September 14, 2010. The memorandum identified 23 initiatives for reducing inefficiencies and improving cost performance. These initiatives were mapped across the multi-functional portfolio of DAU DAWIA courses. Thirty seven courses have been linked to at least one of the "Carter initiatives." Nine contracting courses were identified. The restructure will provide greater detail of topics in the CON curriculum and identify opportunities for increased rigor and depth of instruction in contracting and contract pricing. Case studies and simulations are anticipated as relevant data becomes available. Course launches are scheduled to begin in Oct 2011 and continue into the start of the 2nd Qtr of FY 2012.

From 31 Aug - 3 Sep 2010, DAU Contracting leaders, course managers, and a representative from Defense Procurement and Acquisition Policy (DPAP) met at DAU Headquarters in Ft Belvoir, VA. Their task was to review the entire CON certification curricula with specific focus on Pricing Weighted Guidelines (WGL), Small Business, Services, Industrial Property, Source Selection, Competition, Contract Types (Incentives), and Should (Will) Cost. The restructure will align CON Levels I-III with CON competencies, and leverage continuous learning modules to reinforce the classroom experience.

Click here to view a summary of projected changes.

By Marcus Weisgerber
December 6, 2010 at 5:05 PM

The Senate Armed Services Committee late last week voted to advance Air Force Gen. Robert Kehler's nomination to become the chief of U.S. Strategic Command.

If confirmed by the full Senate, Kehler -- who oversees Air Force Space Command -- would replace Gen. Kevin Chilton, who is retiring.

Kehler appeared before the committee on Nov. 18. President Obama nominated Kehler for the STRATCOM post in early September. Sen. James Webb (D-VA) had reportedly threatened to hold up Kehler's confirmation, but has since dropped those threats.

Appearing on a discussion panel with the majority of the service's four-star generals at an Air Force Association-sponsored conference in mid-September, Kehler had a tendency to answer a number of questions from the moderator like this: “I am humbled by the nomination and look forward to the confirmation process. Thank you.”

When asked to reflect on his three years at Air Force Space Command, he joked, “This is a little bit -- you know -- like the report of my demise is a little premature. I'm not dead yet.”

By Dan Dupont
December 6, 2010 at 3:21 PM

Plenty of news on defense budget and procurement issues was generated last week at a two-day investor conference in New York that featured a slew of senior DOD types. We brought you must-reads from the show on JSF (another here), efficiencies savings and more.

Today CreditSuisse, one of the sponsors of the event, sent out a handy summary along with its own analysis of what went down. Some highlights:

Strong Potential for Negative Topline over Next Several Budget Cycles: Some of our speakers unexpectedly migrated from the current program-of-record, which calls for 1% DoD budget growth, including a 5-year plan to redirect $101B in targeted savings (mostly O&M) to support 2-3% real growth in weapons accounts. Instead, several speakers acknowledged strong potential for eventual spending reductions of up to 15-20% over the next several budget cycles. This magnitude was referenced as historically consistent with previous downturns, but we note that those were driven by abating threat, while today’s challenge is massive deficit. The more uncertain part is timing. We expect that one or two programs will be cut in the FY’12 budget, but major top-line Base Budget reduction is unlikely while we are in a “shooting war."

Profit Margins: It is already widely known that DoD wants to better align contractor profit & risk on development programs, but Dr. Carter emphasized full-rate production margin is a key protected incentive for industry.

Scale Purchasing: General Cartwright was extremely clear that we must buy in bulk (scale) to have sufficient quantities of combat platforms. Current pattern of buying more expensive platforms in fewer quantities will leave us heavily under-equipped. He also downplayed need for exquisite solutions.

Cyber Spending Must Rise: DoD is clearly going to increase cyber funding by FY’12, or FY’13 at the latest. We were warned that defending networks takes 10x the lines of software code for every line used for cyber attack. However, given the late creation of DoD Cybercom in 2010, cyber funding may not ramp up aggressively until FY13.

Unmanned over Manned Is the Way of the Future: General Cartwright clearly favors the fiscal and operating economies of unmanned vehicles, which are developing greater cognitive ability and will soon out-process human platforms at lower cost, with reduced loss of life.