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April 13, 2021 | International, C4ISR

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  • AF Seeks Freedom To Shift $$ Between Space Programs

    April 17, 2020 | International, Aerospace

    AF Seeks Freedom To Shift $$ Between Space Programs

    "[T]he way that the Air Force and now Space Force put their budget submissions into Congress, it puts all of the programs into individual program elements," Roper said, "and that's like locking [each] program into a little financial prison." By THERESA HITCHENSon April 16, 2020 at 4:28 PM WASHINGTON: The Air Force wants Congress to approve new powers allowing the service to fund space acquisition in ‘blocks' that would allow it more freedom to shift funds from one specific program to another, says service acquisition head Will Roper. The idea, he told reporters today, is to give the Space Force acquisition authorities that mimic those used by fast-moving and highly capable organizations such as the Special Capabilities Office and the NRO. The mechanism: putting multiple programs into one budgetary program element (PE) number so priorities can be juggled or monies shifted to ailing programs to help them cope with cost or schedule overruns. “One of the things that we are very passionate about for space acquisition is trying to consolidate the space portfolio into a few number of program elements,” Roper said, noting that when he headed the SCO “we funded almost all of our programs out of one program element. That's really important because it let me optimize the portfolio of programs, not just do individual programs,” he explained. “Well, the way that the Air Force and now Space Force put their budget submissions into Congress, it puts all of the programs into individual program elements, and that's like locking [each] program into a little financial prison.” Although it is true that other organizations with acquisition powers — including SCO, NRO and the Missile Defense Agency — have such flexibility, it is unclear whether Congress will acquiesce to the same for the Space Force. The 2016 NDAA created a new “major force program” — MFP 12 — for DoD reporting on the national security space budget precisely to overcome: a) the lack of transparency in DoD budgeting for space programs, and b) the long-standing Air Force practice to shift space funds to air power programs that were suffering setbacks. However, an MFP does not allow the Air Force or other space services to move money around without congressional assent. As late as the 2020 budget request, DoD admitted that it still had not sorted out how exactly to meet the MFP-12 requirement as it was still developing standard practices for determining what should be included or not. Joshua Huminski, director of the National Security Space Program at the Center for the Study of the Presidency and Congress (CSPC), said wryly that the Air Force request is likely to “require very artful selling to Congress.” He explained in a phone conversation today that congressional leaders already are keeping the Air Force on a short leash regarding space acquisition. Roper said the request for such new authorities will be included in the space acquisition report Air Force Secretary Barbara Barrett is required to send to Congress under language in the 2020 National Defense Authorization Act (NDAA). That report was due March 31 but has yet to be transmitted. Roper said the report is finished but is being reviewed by Defense Secretary Mark Esper. As I've reported, Barrett's report will punt on the question of whether the NDAA-required Space Force acquisition executive will be a fully separate office or will be organized in some fashion as a subunit of Roper's current shop. It's no secret that Roper has strenuously opposed a fully bifurcated space acquisition office. Roper confirmed today that the pending report is concentrating on how the service hopes to use its current, and newly proposed, acquisition authorities to speed the often decades-long process of moving new space capabilities from design to procurement. He explained that the Air Force will wait until after Congress decides on its proposal for future space acquisition authorities before circling back to the organizational question — in effect, meaning that the service will not address the issue until after the 2021 NDAA is passed. “And then once we determine what will be given to us or not, then for round two, we'll look at what's the right way to organize with these new authorities, and at that point we'll take on the question of whether there should be one or two service acquisition executives,” he elaborated. The service has until October 2020 to establish the controversial new space acquisition post. https://breakingdefense.com/2020/04/af-seeks-freedom-to-shift-between-space-programs

  • Air Force To Pump New Tech Startups With $10M Awards

    February 26, 2020 | International, Aerospace

    Air Force To Pump New Tech Startups With $10M Awards

    The Air Force's new investment strategy is designed to "catalyze the commercial market by bringing our military market to bear," says Roper. By THERESA HITCHENS PENTAGON: The Air Force will roll out the final stage in its commercial startup investment strategy during the March 13-20 South By Southwest music festival, granting one or more contracts worth at least $10 million to startups with game-changing technologies, service acquisition chief Will Roper says. The first-of-its kind event in Austin, called the Air Force Pitch Bowl, will match Air Force investment with private venture capital funds on a one to two ratio, according to a presentation by Capt. Chris Benson of AFWERX at the Strategic Institute's Dec. 4-5 “AcquisitionX” meeting. So, if the Air Force investment fund, called Air Force Ventures, puts in $20 million, the private capital match would be $40 million. AFWERX, the Air Force's innovation unit, has one of its hubs in Austin. “This has been a year in the making now, trying to make our investment arm, the Air Force Ventures, act like an investor, even if it's a government entity,” Roper explained. “We don't invest like a private investor — we don't own equity — we're just putting companies on contract. But for early stage companies, that contract acts a lot like an investor.” The goal is to help steer private resources toward new technologies that will benefit both US consumers and national security to stay ahead of China's rapid tech growth, Roper told reporters here Friday. The Air Force wants to “catalyze the commercial market by bringing our military market to bear,” he said. “We're going to be part of the global tech ecosystem.” Figuring out how to harness the commercial marketplace is critical, Roper explained, because DoD dollars make up a dwindling percentage of the capital investment in US research and development. This is despite DoD's 2021 budget request for research, development, test and evaluation (RDT&E) of $106.6 billion being “the largest in its history,” according to Pentagon budget rollout materials. The Air Force's share is set at $37.3 billion, $10.3 billion of which is slated for Space Force programs. “We are 20 percent of the R&D is this country — that's where the military is today,” Roper said. “So if we don't start thinking of ourselves as part of a global ecosystem, looking to influence trends, investing in technologies that could be dual-use — well, 20 percent is not going to compete with China long-term, with a nationalized industrial base that can pick national winners.” The process for interested startups to compete for funds has three steps, Roper explained, beginning with the Air Force “placing a thousand, $50K bets per year that are open.” That is, any company can put forward its ideas to the service in general instead of there being a certain program office in mind. “We'll get you in the door,” Roper said, “we'll provide the accelerator functions that connect you with a customer. “Pitch days” are the second step, he said. Companies chosen to be groomed in the first round make a rapid-fire sales pitch to potential Air Force entities — such as Space and Missile Systems Center and Air Force Research Laboratory — that can provide funding, as well as to venture capitalists partnering with the Air Force. As Breaking D broke in October, part of the new acquisition strategy is luring in private capital firms and individual investors to match Air Force funding in commercial startups as a way to to bridge the ‘valley of death' and rapidly scale up capability. The service has been experimenting with ‘pitch days' across the country over the last year, such as the Space Pitch Days held in San Francisco in November when the service handed out $22.5 million to 30 companies over two days. Roper said he intends to make “maybe 300 of those awards per year,” with the research contracts ranging from $1 million to $3 million a piece and “where program dollars get matched by our investment dollars.” The final piece of the strategy, Roper explained, is picking out the start-ups that can successfully field game-changing technologies. “The thing that we're working on now is the big bets, the 30 to 40 big ideas, disruptive ideas that can change our mission and hopefully change the world,” Roper said. “We're looking for those types of companies.” The Air Force on Oct. 16 issued its first call for firms to compete for these larger SBIR contracts under a new type of solicitation, called a “commercial solutions opening.” The call went to companies already holding Phase II Small Business Innovation Research (SBIR) awards. The winners will be announced in Austin. If the strategy is successful, Roper said, the chosen firms will thrive and become profitable dual-use firms focused primarily on the commercial market. “The, we're starting to build a different kind of industry base,” Roper enthused. “So, we've gotta get the big bets right. Then most importantly, if you succeed in one of the big bets, then we need to put you on contract on the other side, or else the whole thing is bunk.” https://breakingdefense.com/2020/02/air-force-to-pump-new-tech-startups-with-10m-awards

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