September 20, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

Obscure Pentagon Fund Nets $2B, Sets Pork Senses Tingling

The Pentagon will soon have received about $2.3 billion in the last nine years — money the military never requested — for a special fund intended to help replace earmarks after Congress banned them, our analysis shows.

Buried deep inside the $674.4 billion Defense spending measure for fiscal 2019 that the Senate is expected to vote on this week is a chart with one line showing a $250 million appropriation for the Defense Rapid Innovation Fund, the latest installment of sizable funding for a largely unknown program that quietly disburses scores of contracts every year.

To supporters, the fund is a way to bankroll innovative systems that the military may not yet know it needs. To critics, the fund is just earmarking by another name.

The kinds of systems that net contracts from the innovation fund run the gamut. In fiscal 2016, they included programs to demonstrate artificial intelligence systems for aerial drones, anti-lock brakes for Humvees and underwater communications systems for undersea drones.

The systems may be technologies for which the military services have not yet established a requirement because they may not know what is technically possible. It is not clear how many of the systems actually become operational.

The defense fund's eclipsing of the $2 billion mark comes as debate heats up in Washington over whether to revive earmarks. And the special account highlights key elements of that debate.

Talk of earmarks 2.0

Earmarks have generally been defined as parochial spending, directed by lawmakers and received by people who have not competed for it.

In 2011, after earmarks were tied to several scandals and spending projects seen as excess, Congress barred them — or at least a narrow definition of them, critics contend, noting that, among other loopholes, committees could still add money for parochial projects without spelling out who supports them.

President Donald Trump suggested earlier this year that a return of earmarks, which were often used in horsetrading for votes, might be beneficial.

Minority Whip Steny H. Hoyer of Maryland, has suggested he would aim to bring back earmarks if his party takes control of the House next year. The senior Democrat on Senate Appropriations, Patrick J. Leahy of Vermont, has also supported a comeback for the practice. Republican leaders are less vocal right now, but many of them also support a return to earmarks.

“I don't doubt that the next organizing conference for the next Congress will probably wrestle with this issue,” outgoing House Speaker Paul D. Ryan told reporters earlier this month.

Account quietly amasses funds

The Defense Rapid Innovation Fund was launched in 2010 (first as the Rapid Innovation Program) in the fiscal 2011 defense authorization law. It was a way to capture what proponents called the innovative spirit of programs called earmarks that were clearly about to be banned.

Unlike earmarks, the defense fund's money would be competitively awarded by the Pentagon, not directed by Congress, supporters of the idea pointed out.

Democrat Norm Dicks, then a senior Defense appropriator, and other advocates of the program described it at the time as a way to capture the innovation among smaller companies, including many who had received earmarks.

“We have not always had an adequate way of bringing these smaller firms and their innovation into the defense pipeline,” Dicks said in 2010.

Each year since its creation, the fund has received another installment of funds, never less than $175 million or more than $439 million.

The program has awarded several hundred contracts, averaging about $2 million each, mostly for small businesses with technologies that were relatively mature and that could address some military need, according to a fiscal 2017 Pentagon summary of the program's results.

Full article: http://www.rollcall.com/news/politics/obscure-pentagon-fund-nets-2-billion

On the same subject

September 3, 2019 | International, Naval

Navy to Update 2 Dry Docks to Accommodate Ford-Class Carriers
By: Ben Werner Only one of the Navy's 18 dry docks used for maintaining the nuclear-powered carrier fleet can support a Ford-class carrier, Navy officials told USNI News. Dry Dock 8 at the Norfolk Naval Shipyard can handle a Ford-class carrier, but only after a temporary cooling water systems is set up. A permanent cooling water system and other upgrades to Dry Dock 8 are scheduled to occur before USS Gerald R. Ford (CVN-78) enters its first planned dry dock availability, Anna Taylor, a Naval Sea Systems Command spokeswoman, told USNI News in an email. The Navy also plans to upgrade a West Coast dry dock to handle the future USS John F. Kennedy (CVN-79), Taylor added. Mike Petters, chief executive of Huntington Ingalls Industries, whose Newport News Shipbuilding yard is the sole builder of aircraft carriers for the U.S. Navy, said in a conference call with analysts earlier this month that the fixes required were not complicated. The hull size of the new class is roughly the same as the Nimitz-class carriers that make up the rest of the fleet, so Petters said the shipyards do not need to do many physical changes to piers and docks. “There are clearly differences between Ford and Nimitz,” Petters said of the carrier classes. “The power requirements, those kinds of things. I think those are all things that can be addressed and will be addressed by the government shipyards, so I don't really see a major fundamental change in the way the Ford-class is going to be supported from the industry.” The Navy is also planning improvements to the Puget Sound Naval Shipyard and Intermediate Maintenance Facility's dry dock infrastructure before the future USS Kennedy (CVN-79) is expected to enter its first availability, Taylor said. Doing so will give the Navy two dry docks – one on each coast – capable of supporting Ford-class carriers. Kennedy is expected to be christened later this year and is still years away from joining the fleet. The need to upgrade dry docks to support the new class of carriers comes amid both a push to modernize and optimize the four public shipyards that work on carriers and submarines, as well as a realization that the need for maintenance facilities is far greater than what's available at public and private yards. The Navy's long-range ship maintenance and modernization plan, released in March, details the mismatch and suggests some strategies to fix the problem. The Navy's Shipyard Infrastructure Optimization Program (SIOP) is a 20-year, $21-billion program to modernize the Navy's four public shipyards and is a major part of the solution laid out in the long-range plan, Taylor said. With a renewed focus on readiness, there's an opportunity for private shipyards willing to make investments in their facilities, too, to pick up some more Navy maintenance business, Petters told analysts during the conference call. The Navy's long-range ship maintenance and modernization plan also states that the Navy needs private sector help. “Sustaining the 355-ship fleet will require changes to both public and private industrial capability and capacity. Current infrastructure will require update and refurbishment to support modern classes of ships and repair. Likewise, additional dry docks will be needed to address the growing fleet size,” the plan states. Petters cited the Navy's work improving readiness among its aviation community as a good sign the Navy can translate this experience to the ship repair business. However, the Navy needs private shipyards to address its backlog of repair and maintenance work. “The Navy has taken a hard turn on how do you do readiness in a more efficient way, and that's being led from the secretary's office,” Petters said. “We've talked about readiness in my career for a long time. This is a no-kidding effort to go get it sorted out.” Predictability in contracting, though, is critical if the private sector is going to invest in upgrading its yards, Petters said. “I think we're on the front end of that to see whether we can actually create more efficiency there,” Petters said. “We certainly want to participate in that, and so far we've kind of got our toe in the water with the Virginia-class (submarine maintenance) support. And we'll see what other opportunities it presents. So little early for us to try to predict how that's all going to shake out.” https://news.usni.org/2019/08/30/navy-to-update-2-dry-docks-to-accommodate-ford-class-carriers
September 25, 2024 | International, Land

CACI Awarded $314 Million Task Order to Provide Engineering Services to U.S. Navy NUWC
Through the NUWC Engineering and Modernization Operations program, CACI will develop, deliver, and train sailors in the areas of integration support, logistics, project management, cyber capabilities, and analysis.
November 4, 2020 | International, Aerospace

Defense aerospace primes are raking in money for classified programs
By: Valerie Insinna WASHINGTON — Two months after disclosing the existence of a next-generation fighter jet demonstrator, the U.S. Air Force is staying mum on which company may have built it. But one thing is for sure: Classified aviation programs are on the rise, and opportunities abound for the three major American defense aerospace primes — Lockheed Martin, Northrop Grumman and Boeing. During an Oct. 20 earnings call with investors, Lockheed Martin Chief Financial Officer Ken Possenriede revealed the company's Aeronautics division recently won a classified contract that would necessitate the construction of a new building in Palmdale, California, where the company's Skunk Works development arm tests and creates prototypes of secret aircraft. Sales for the division were up 8 percent in this year's third quarter compared to the same period in 2019, with about $130 million of the $502 million boost attributed to classified work. But Possenriede alluded to even more growth on the horizon. “For Aeronautics, we do anticipate seeing strong, double-digit growth at our Skunk Works, our classified advanced development programs. We continue to execute on those recent awards,” he said, adding that there were a “multitude of opportunities” still out there. Classified work also increased at Northrop Grumman's Aeronautics Systems unit, with “restricted activities” in the autonomous systems and manned aircraft portfolios helping bolster sales by 5 percent for the quarter and 4 percent year-to-date when compared to 2019, Chief Financial Officer Dave Keffer told investors Oct. 22. It's tempting to draw a line from these contract awards to the recent flight of a demonstrator for the Next Generation Air Dominance program — the Air Force's effort to field a suite of air superiority technologies that could include drones, high-tech weapons and what some have termed as a sixth-gen fighter, although service officials have said any warplane in the mix might not resemble a traditional fighter. Even though the Air Force announced in September that at least one NGAD demonstrator exists, it's unclear which companies are involved. Still, there are plenty of other longstanding and emerging Air Force requirements that could be the source of this classified work, said Richard Aboulafia, an aerospace analyst for the Teal Group. “It's pretty clear that there's more prototyping activity going on out there than was generally known. I had assumed that most of the work related to NGAD was happening at the systems level. It's clearly happening at the airframe level too," he said. "And then of course there are a lot of potential drone developments that are certainly worth watching,” from the MQ-9 Reaper replacement to strategic reconnaissance requirements, “which is fundamentally a very expensive activity.” The wild card in this situation is Boeing. Because of investors' focus on the commercial side of the business — including plans for the return of the Boeing 737 Max to flight, as well as the continued downward spiral of sales caused by the global pandemic and its chilling effect on air travel — executives did not speak about Boeing Defense, Space and Security's classified activities during the company's Oct. 28 earnings call. “Overall, the defense and space market remains significant and relatively stable, and we continue to see solid global demand for our key programs,” a Boeing spokesman said in response to questions about the company's classified business. “We project a $2.6 trillion market opportunity for defense and space during the next decade, which includes important classified work.” After years of lost competitions, there are signs that the company's combat aircraft production facilities in St. Louis, Missouri, as well as its advanced projects division, Phantom Works, are returning to health. Over the past two years, the company has banked major awards, including the Navy's MQ-25 tanker drone and the T-7A trainer jet, both of which were developed by Phantom Works. Boeing's work on the T-7 received praise from Air Force acquisition executive Will Roper for its use of digital engineering, which involves simulating the design, production and life cycle of a product in order to drive down costs. The company has also started selling the advanced F-15EX fighter jet to the Air Force, breathing a second life into that aircraft with this latest variant. But Aboulafia worried that pressure on Boeing's commercial business — combined with its strategy of leveraging the work of other aircraft makers on projects like the T-7, where Swedish manufacturer Saab had a heavy influence in shaping the design — may have led to a loss of resources and engineering talent at Phantom Works. “Either they're sitting it out now because their focus is elsewhere, or they don't have the capabilities and the commitment that the others do, or we're just not hearing about it now,” he said. Boeing is not the only company investing in digital engineering and advanced manufacturing processes. Northrop CEO Kathy Warden pointed to her company's use of digital engineering in the Ground Based Strategic Deterrent program, which the company won in September to build the Air Force's next-generation intercontinental ballistic missiles. “The work that we have done with the customer already, even under the tech maturation and risk reduction phase of the program, was done in a digital environment,” she said. “We delivered artifacts for review in a fully digital environment where they were actually looking at things in a model, not documents produced. This is the first time on a program of this size where that's been the case.” “Those investments that we're making for GBSD are being utilized across our entire portfolio,” she added. “So as we think about Next Generation Air Dominance and the programs that are part of that overall campaign ... they too will benefit from a full digital engineering thread as being required by our customers.” https://www.defensenews.com/industry/2020/11/03/defense-aerospace-primes-are-raking-in-money-for-classified-programs/

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