Army gets first high-power microwave prototype to counter drone swarms

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  October 2, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

  Facing industry pressure, Pentagon backs off contract payment changes

  By: Aaron Mehta and Joe Gould WASHINGTON – Following a wave of criticism from the defense industry and members of Congress, the Pentagon on Monday backed off proposed changes to how companies receive cash flow on their contracts. In a statement released at the unusual time of 7:19 PM, Deputy Secretary of Defense Patrick Shanahan said the decision to withdraw the proposed acquisition changes stemmed from a lack of “coordination” inside the department. “Recently, proposed amendments to the Defense Federal Acquisition Regulation Supplement (DFARS) were prematurely released, absent full coordination,” Shanahan's statement read. “As a result, the Department will rescind the proposed amendments. In coordination with industry, the Department will create a revised rule to implement section 831 of the FY2017 NDAA.” "The department will continue to partner closely with Congress and industry to examine all reform opportunities, ensuring we provide the best value to taxpayers and critical capabilities to military personnel who defend this great Nation,” Shanahan said. Unsaid in the statement: that since word of the proposed changes got out, the defense industry has been loud and unanimous in its opposition, and has enlisted its supporters on the Hill to help fight against the plan, put forth by Undersecretary of Defense for Acquisition and Sustainment Ellen Lord. As part of a broader set of changes to the acquisition rules, Lord hoped to change how companies receive their cash flow based on performance measurements, to act as an incentive for good behavior. In a Sept. 5 interview with Defense News, she laid out the rationale, saying “I believe the lifeblood of most industry is cash flow, so what we will do is regulate the percentage of payments or the amount of profit that can be achieved through what type of performance they demonstrate by the numbers.” However, three major trade groups — The National Defense Industrial Association, Professional Services Council and the Aerospace Industries Association — objected to the proposal, which would slash the payments on work to be performed from 80 percent to 50 percent, with incremental increases for maintaining quality or on-time delivery — and decreases for companies that have committed fraud. Rep. Mac Thornberry, R-Texas, and Sen. Jim Inhofe, R-Okla., the chairs of the House and Senate Armed Services Committees, sent a Sept. 21 letter to Shanahan calling the proposal “fundamentally flawed" and asking that it be rescinded and revisited. “We should not make it harder to do business with the Department of Defense than it is to do business with other parts of government — and that's exactly what this regulation does,” Thornberry told reporters last Tuesday. “We try to streamline acquisition, we try to make it easier to do business with these small companies; and then something like this comes out.” The Pentagon had hoped to implement the rule changes by the end of the year and had planned to hold a public meeting on Oct. 10, before the public comment period ended on Oct. 23. Whether that event will still happen is unclear. https://www.defensenews.com/pentagon/2018/10/02/facing-industry-pressure-pentagon-backs-off-contract-payment-changes

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  February 22, 2018 | International, C4ISR

  US Army requests $429 million for new cyber training platform

  In 2016, the Pentagon tapped the Army to lead development of a persistent cyber training environment, or PCTE, to help train experts from Cyber Command in a live-virtual-constructed environment. Since then, cyber officials have repeatedly said such an environment is among their top priorities. “The service cyber components have established their own training environments but do not have standardized capabilities or content,” Army budget documents say. In the Army's research and development budget documents, the service requested $65.8 million in fiscal 2019 for the training environment and $429.4 million through fiscal 2023. Under the various line items in the Army's research and development budget, the Army is looking to develop event scheduling for the environment. It also wants to develop realistic vignettes or scenarios as part of individual and collective training to include real-world mission rehearsal, on-demand reliable and secure physical and virtual global access from dispersed geographic locations. In addition, the Army is asking for $3 million in fiscal 2019 base budget money to find and close gaps in hardware and software infrastructure related to virtual environments needed for cyber operational training. Additional funds will go toward virtual environments such as blue, grey, red or installation control system that the cyber mission force use for maneuver terrain. Moreover, the documents indicate that the Army will use Other Transaction Authorities vehicles for contract awards. The program will be delivered through incremental capability drops. The document states a “full and open competitive contract will be awarded in FY20 for further integration of new or refinement of existing capabilities, hardware refreshes, accreditation, and software licensing.” https://www.c4isrnet.com/dod/2018/02/21/army-requests-429-million-for-new-cyber-training-platform/

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  October 21, 2020 | International, C4ISR, Security, Other Defence

  Lockheed sees earnings growth in space business

  Joe Gould WASHINGTON ― Space emerged as Lockheed Martin's business area with the highest growth, driven by hypersonic weapons programs and an anticipated next-generation interceptor award, CEO James Taiclet said Tuesday on the company's third-quarter earnings call. Though F-35 fighter jet deliveries and classified programs drove growth in Lockheed's aeronautics segment, and demand for Hellfire missiles drove the missiles and fire control segment, low single-digit increases were largely Lockheed's norm for the quarter. “When we speak of hypersonics, I think there's a very big upside there because there's a very big threat. It's getting worse out of Russia and China, and the U.S. and its allies are going to have to meet it both on offensive and defensive hypersonic systems,” Taiclet said, adding that classified space systems are a “wide-open field.” Taiclet also said he expects the government will work with industry to counter emerging kinetic and non-kinetic threats to space assets, ground stations and the links between them. He pointed to the Space Development Agency's selection of Lockheed, which is one of the firms building its “transport layer” — a low-Earth orbit constellation of satellites that can transfer data globally through optical intersatellite links. Taiclet touted the satellite constellation's eventual ability to transmit data at high speeds to aircraft, ground troops, and surface and undersea vessels as synergistic with Lockheed's push into 5G networking, which Taiclet calls “5G.mil.” A telecom executive before he joined Lockheed in June, Taiclet speculated that the company's toehold will give it an advantage as competition in this business area heats up. SDA Director Derek Tournear previously stated that the transport layer will be the space component of Joint All-Domain Command and Control, or JADC2, a Pentagon effort to connect any sensor to any shooter across domains and services. The effort now has a “C” at the beginning — CJADC2 — for “Combined.” Lockheed reported Tuesday that its space segment's net sales in the third quarter of 2020 increased $163 million, or 6 percent, compared to the same period in 2019. The segment earned $90 million for government satellite programs due to higher volume (primarily Next Generation Overhead Persistent Infrared satellites), and about $60 million for strategic and missile defense programs due to higher volume (primarily hypersonic development programs). Space's operating profit in the third quarter of 2020 decreased $61 million, or 20 percent, compared to the same period in 2019. There was a decrease there of $50 million due to lower equity earnings from the corporation's investment in United Launch Alliance ― a joint venture with Boeing. Lockheed announced last week it will partner with Aerojet Rocketdyne to compete for the Next Generation Interceptor program, which is run by the Missile Defense Agency. The MDA plans to downselect to two companies, with an eventual winner expected to have a system ready in 2028. On Tuesday's call, Taiclet said Lockheed's acquisition of Integration Innovation Inc.'s hypersonics portfolio this month was to provide a new capability in thermal management for hypersonic glide bodies. The deal with i3 of Huntsville, Alabama, was part of a broader mergers and acquisition strategy, that includes joint ventures and commercial partnerships, to add to the company's “technological firepower” in areas like mission systems, he said. “We plan to be active, but we plan to be very, very prudent,” he noted. It was disclosed last week that the Pentagon's nascent hypersonic missile, during a March 19 test in Hawaii, hit within 6 inches of its target. The Army is developing a ground-launched capability and plans to field a battery-sized hypersonic weapon to soldiers by 2023. Lockheed executives were upbeat about space launch. Under a recent Pentagon award, potentially worth billions of dollars, to launch national security payloads over the next five years, ULA will receive 60 percent of the contracts and SpaceX will get 40 percent. Asked Tuesday about competition between ULA and SpaceX, Lockheed Chief Financial Officer Ken Possenriede acknowledged SpaceX as “more than an emerging threat right now.” “Of the recent competitions we've had with them, we've been pleased with where ULA landed relative to SpaceX,” Possenriede said. “We also think we now have a price point that is compelling to customers that will allow ULA to get its fair share of awards over SpaceX.” https://www.defensenews.com/2020/10/20/lockheed-sees-earnings-growth-in-space-business/