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  October 30, 2019 | International, C4ISR

  Army’s plan to field its network could collapse under an extended continuing resolution

  By: Jen Judson ABERDEEN PROVING GROUND, Md. — Critical fielding plans for major elements of the Army's revamped network could fall apart if Congress does not reach a budget deal soon, according to service leaders in charge of network modernization. Should Congress opt to extend the current continuing resolution, which funds the government at fiscal 2019 budget levels, past the Nov. 21 deadline, the Army will struggle to get more capable radios and other elements of its new and improved network to units. While a shorter extension would be less painful, a yearlong continuing resolution, or CR, would derail the efforts. “The whole fielding plan will collapse without a budget,” Army Secretary Ryan McCarthy said during a recent trip to Aberdeen Proving Ground, Maryland, where he was briefed on the service's efforts to deliver a modernized network to the force. “The longer [the CR] goes, I think it can definitely impact the schedule. If it bleeds into the next calendar year, you can look at a day-for-day slip” until a budget is passed, he said, adding that the longer a CR exists, the more likely the Army will have to reformulate its fielding plan because the units originally intended to receive the equipment won't be available to test the new capabilities and train with them. The Army is scheduled to conduct three major test events next year of its network. The 1st Brigade of the 82nd Airborne Division will assess the first capability set of the new Integrated Tactical Network, or ITN, in February. The manpack and leader radio operational test, which is part of the Handheld, Manpack, and Small Form Fit radio program, is scheduled for the third quarter of FY20. Furthermore, at next year's Defender Europe military exercise, the Army will use the Command Post Computing Environment, the Tactical Server Infrastructure and a number of ITN's initial capabilities to assess interoperability with partners and allies. If a CR extends past the first quarter of the fiscal year, the Army will be unable to test radios with a new waveform, known as TSM, as part of its HMS radio program. The current plan is for the 1st Brigade of the 82nd to test the radios in the third quarter of FY20. The TSM waveform is critical to a modernized network because it provides greater capability than what is currently fielded. The radios with the TSM waveform are more secure, can connect a larger number of radios on a single network, can easily tie into coalition partners' communications, and can more effectively push voice and data. If the Army is faced with a yearlong CR, the HMS radio program would be limited to a $3.7 million budget out of $35.6 million requested in FY20. Without the funding, the manpack and leader radio operational test won't happen until FY21, and the Army will likely have to shift to a different unit to conduct the test because of the operational tempo of the 82nd, according to Maj. Gen. Peter Gallagher, who is in charge of the Army's network modernization. Additionally, if testing can't begin until FY21, the Army's full-rate production schedule will slip. “We're confident that our radios will support the waveform, but we're talking about maybe a situation where we couldn't ramp up production to meet the capability set fieldings without essentially ordering stuff in the absence of that operational test, which is not exactly a best practice,” Gallagher said. The Army is planning to field the radios to four units in 2021: the 1st Brigade of the 82nd; the 173rd Airborne Brigade Combat Team; the 3rd Brigade of the 25th Infantry Division; and the 2nd Brigade of the 82nd. A long-term CR would also prevent the procurement of critical ITN communication enhancement equipment that will also be delivered to the four planned brigade combat teams in FY21. Without the equipment, the Army would have to delay communication patches for light infantry formations. A yearlong CR would affect the fielding of the Tactical Server Infrastructure, or TSI, which is also facing a potential FY20 budget cut. The Senate Appropriations Committee's Defense Subcommittee cut its procurement line by more than half, and it's unclear whether that decrement will survive conference committee. The TSI would only have 26 percent of its funding under a yearlong CR, which means the procurement of TSI servers, both small and large versions, will be delayed. A $45.86 million reduction in FY20 would prevent the fielding of 101 large variant servers and 184 small variants, which means two corps, three divisions and 10 brigade combat teams — including units like the 18th Airborne Corps, the 1st Cavalry Division, the 101st Airborne Division, III Corps and 4th Infantry Division — wouldn't get the updated server hardware needed to run the Command Post Computing Environment, Gallagher said during a briefing with McCarthy. And because the servers used to run the Command Post Computing Environment will be delayed, so will the rollout of the CPCE itself. Units like the 10th Mountain Division and the 335th Theater Signal Command have requested accelerated fielding of the CPSE and TSI capability. Currently fielded servers are cumbersome to initialize and are not appropriately protected to deal with emerging cyberthreats. The Tactical Defensive Cyber Operations Infrastructure capability, which protects the servers, will also be delayed. As the Army's first capability set due for fielding in 2021 would be delayed under a CR, its next capability set slated for 2023 would also be pushed back. The Army wouldn't have the funds to conduct experimentation and soldier evaluation because those are considered new start programs with no funding lines in FY19. Those efforts include experiments with low-Earth and medium-Earth orbit constellations, data management, new waveforms, command post mobility, and network management tools. This early research and development is meant to inform preliminary design and further larger-scale experimentation leading up to 2023. https://www.c4isrnet.com/2019/10/29/army-network-fielding-plan-could-collapse-under-extended-continuing-resolution/

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  March 16, 2020 | International, Aerospace

  Opinion: How New ‘Predators’ Are Reshaping Aerospace Landscape

  By Antoine Gelain Behind the big aerospace and defense (A&D) primes like Boeing and Airbus and the “Super Tier-1s” such as United Technologies (UTC) and GE, a very different type of company is shaping the global A&D industrial landscape in a way that may be even more impactful than high-profile UTC-Raytheon-type mergers. Companies such as Teledyne, TransDigm and Heico are the spearheads of a breed of A&D players dedicated to “components and subsystems,” with explicit and perfectly executed “horizontal” external growth strategies. Their track records are impressive: These three companies—with combined revenues of more than $10 billion—have collectively made close to 200 acquisitions and delivered more than 20% average annual growth rate in either profitability or share value over the last 20 years. Thanks to such returns and skyrocketing market valuations, they are able to outbid most other contenders when going after an acquisition target by leveraging the so-called “accretive effect.” This effect boosts the acquiring company's earnings per share, as long as the price paid for the target as a ratio of the enterprise value (EV) over its earnings before interest, taxes, depreciation and amortization (EBITDA) is lower than that of the acquiring firm. As it happens, the current EV/EBITDA ratio of the three above-mentioned companies stands at more than 18 (see graph). By comparison, most other A&D companies have an EV/EBITDA ratio in the 9-13 range. Such “buying power” is enhanced by operational synergies (for instance, in corporate overheads, sales and marketing), which immediately boost the profitability of the acquired company and can therefore be factored in the offer price. This gives them an additional edge against pure financial investors like private equity (PE) funds, which have historically been strong buyers of such component and subsystem businesses. Two recent deals in Europe (one still ongoing) illustrate this new balance of power. The first concerns Souriau-Sunbank, a $360 million-revenue specialist in interconnection technology for harsh environments. After being owned successively by two PE funds and bought by Esterline (now TransDigm) in 2011, it was again put up for sale last year. While expectations were that a PE fund would grab it, another industrial buyer, Eaton Corp., won the contest, paying the hefty price of $920 million (an EV/EBITDA multiple of 12). The second deal relates to a French company called Photonis, a world leader in night-vision technology for defense and space applications, for which Teledyne is apparently bidding—and offering a price 30% higher than the highest PE bid! These deals highlight the limits of the traditional private equity model (too short-term and too short-sighted) and why the “new predators”—all publicly listed companies—are in a much better position to continue to thrive. In fact, by combining “private equity-like growth in value with liquidity of a public market,” as TransDigm puts it, they are not only beating PE players at their own game, but they are also capturing a significant share of the A&D capital market by offering investors an attractive alternative to the traditional vertically integrated groups such as UTC, Thales or Safran. These groups are typically too busy focusing on large systems and equipment to realize that they would actually benefit from articulating a proper “component and subsystem” strategy. They would benefit not only because their portfolios are still full of such businesses, but also because their long-term competitiveness largely depends on their ability to nurture a strong network of strategic suppliers, in terms of both criticality for their own systems and national sovereignty. As it happens, Photonis seems to be such a strategic supplier, since the current French government just announced it would veto the Teledyne deal, hoping to give other French or European companies or investors time to make a competitive offer for the business. But because PE funds, at least in Europe, are somewhat faint-hearted when it comes to ambitious sector-specific “horizontal” portfolio strategies, and because Europe has no industrial player able to compete with the likes of Teledyne, the outcome of the process is still highly uncertain. In any case, Teledyne, Heico, Transdigm and similar companies are surreptitiously reshaping the A&D industrial landscape by buying technological nuggets and component businesses left and right, on both sides of the Atlantic. In the process, they are boosting their shareholders' returns and changing the balance of power with both traditional private equity investors and large vertically integrated A&D groups. As the saying goes: One man's meat is another man's poison. https://aviationweek.com/aerospace/manufacturing-supply-chain/opinion-how-new-predators-are-reshaping-aerospace-landscape

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  May 24, 2019 | International, Aerospace, Naval, C4ISR

  The Navy wants a jammer that will help when flying into enemy airspace

  By: Mark Pomerleau The Navy has awarded $27 million in contract extensions to two companies working to demonstrate a proof of concept for the service's next phase of its premier airborne electronic warfare system. Northrop Grumman and L3 were awarded $13.5 million and $13.6 million, respectively, to continue working on the Next Generation Jammer Low Band program, according to a May 8 Department of Defense announcement. The funds will expand the analysis and design of the Navy's Next Generation Jammer low band pod. The Next Generation Jammer is the Navy's plan to update the legacy jamming pods aboard EA-18 Growlers, serving as the joint force's premier stand off electronic attack platform. The Navy is breaking the program into three pods: mid band, which was awarded to Raytheon in 2016, low band and high band. Adversaries can both hide and attack certain systems within the entirety of the electromagnetic spectrum and to combat that threat the military needs systems that can operate the across that spectrum. National security experts have said the spectrum is too expansive for a single pod to handle, which results in high, mid and low pods. Navy budget documents released in March call for $6.2 million in fiscal year 2020 for mid band from the procurement budget with $524.2 million coming from the research and development budget. Additionally, over the next five years, the Navy plans to spend $4.8 billion for procurement and $3.9 billion in R&D for mid band projects. Northrop — whose team consists of Harris, Comtech PST — and L3 were selected to separately demonstrate solutions for the low band to help the Navy refine requirements for the final program and reduce risk. Each were awarded a 20-month contract in October 2018. Funding for the high band program does not appear in the Navy's fiscal 2020 budget documents. “Northrop Grumman is pleased to have been selected by the U.S. Navy in October 2018 for the Next Generation Jammer Low Band Demonstration of Existing Technologies (DET) program. The additional funding awarded on May 8, will allow the Northrop Grumman-led industry team to continue to work closely with the Navy to continue to reduce risk and support requirements for this fast-paced program,” Curtis Pearson, director of Advanced Programs at Northrop Grumman, said. An L3 spokesperson told C4ISRNET in a statement: “With this week's development funding, L3 Technologies will be able to accelerate delivery of new and much needed capabilities to the fleet through the U.S. Navy's Next Generation Jammer Low Band program. As the spectrum converges between Communications and Electronic Warfare, we saw that we could addresses current, advanced, and emerging threats with an innovative approach. We have a mature, low-risk, affordable solution, and we are confident in our ability to perform for our Navy customer.” The Navy issued a request for information to industry for low band to refine the program's requirements May 15. What's next for low band? According to budget documents, the Navy requested $111 million for low band research and development funds in fiscal 2020 and a total of $3.4 billion over the next five years. Today, the military has identified potential targets that exist within certain portions of the electromagnetic spectrum. But as adversaries become more sophisticated, the military has to adjust its approach for exploiting these vulnerabilities. “We've all been writing and reading about how traditional radar targets, communication targets, network targets, they're all collapsing into one,” John Thompson, director of business development for airborne C4ISR at Northrop Grumman, told C4ISRNET in a February interview. “As we move into this networked world, that becomes more and more ways for enemy forces to attack, opposing forces to attack each other and to defend these same areas or vulnerabilities back and forth.” Thompson said Northrop Grumman hopes to help the military find new ways to attack these targets. The low end of the spectrum, which the low band jammer addresses, is of interest because of the intersection of networks, communication devices and radars within it, he said. These systems have more capability against stealth-shaped airframes, Thompson said. As a standoff jammer, the Growler's role is to attack radars and other systems that can detect or thwart friendly aircraft and systems, allowing them to penetrate enemy airspace. While the Growler has the reputation of being a “loud” jammer, meaning it used brute force rather than a more stealthy approach, which can alert enemies to its presence, Thompson noted that in the future there will be more nuanced approaches to jamming rather than just shoving raw jamming power toward a radar. In finding new ways of jamming, Thompson said, maybe the individual networks and communication devices that make it up can be isolated and jammed creating confusion. Joint airborne electronic attack According to Navy budget documents, the Navy has been tasked with the airborne electronic attack mission in various theaters over the last few decades. While the Pentagon relied on the Growler, it also used the EA-6B Prowlers, operated by both the Navy and Marine Corps. The Prowlers have now been officially retired. The Next Gen Jammer will “provide the ability to effectively engage enemy threats from increased stand-off distances, employ increased capacity (number of jamming assignments) against enemy targets, and support agile employment by operators,” according to the documents. Moreover, the Air Force, following the divestment of many of its electronic attack aircraft following the Cold War, does not have a comparable asset. Air Force pilots often integrate with Navy pilots flying Growlers. A May 2019 Congressional Research Service report notes that DoD has three primary manned electronic attack aircraft. These include the Navy's Growler, the Air Force's EC-130H Compass Call and the Air Force's EC-37B Compass Call Re-Host. The report does note, however that the F-35 has “extensive, integrated EW capabilities.” The Compass Call disrupts enemy communications as well as command and control systems. Air Force leaders have acknowledged that the service has taken its eye off the high-end fight involving electronic warfare. During the counterterrorism fight of recent years, the Compass Call was used to jam terrorists' communications. According to Air Force budget documents, the Compass Call overhaul will allow the Air Force to “effectively conduct Electronic Attack (EA) in an Anti-Access/Area Denial (A2AD) environment,” which applies to more complex operating environments against near-peer adversaries. The Air Force recently finished a year-long study to identify ways the service can improve electronic warfare capabilities and posture. One item in the Air Force's research and development budget for airborne electronic attack seeks to address and resolve gaps across the EW enterprise. Specifically, in fiscal 2020, two items look to support and field systems identified from the year-long study. The entire effort, however, is only asking for $2,000. Meanwhile, the Congressional Research Service noted two areas that Congress should look for in terms of oversight of the airborne electronic attack enterprise across the joint force. One is whether DoD is properly prioritizing airborne electronic warfare programs in its planning and budgeting relative to other U.S. military EW programs for ground forces and surface ships. The report points to hardened enemy airspace fortified by so-called anti-access/area denial capabilities that use radars and long range missiles to keep forces far away preventing them from penetrating. Second, the report notes that Congress may want to look into the Pentagon's proposed mix of airborne EW capabilities and investments. https://www.c4isrnet.com/electronic-warfare/2019/05/23/the-navy-wants-a-jammer-that-will-help-when-flying-into-enemy-airspace/