The US and Europe must recalibrate their security partnership

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  June 4, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Here’s the newest price tag for DoD’s arsenal of equipment

  By: Aaron Mehta WASHINGTON — The Defense Department's portfolio of 121 key defense acquisition programs now has a price tag of $1.86 trillion, according to a new report by the Government Accountability Office. The number comes from the GAO's annual assessment of Pentagon acquisition, delivered to the public on Wednesday. The figure involves a 4 percent increase over the previous year but also factors in, for the first time, 15 major IT investments ($15.1 billion) and 13 middle-tier acquisition programs ($19.5 billion). The vast majority comes from 93 major defense acquisition programs, or MDAP, worth $1.82 trillion. Of those, 85 MDAPs worth a total of $1.8 trillion are already underway, with the rest expected to enter production in the near future. The $1.8 trillion figure marks the largest level of investment in MDAPs since 2011, and an increase of $44 billion over the department's 2018 MDAP portfolio. The current MDAP portfolio has accumulated more than $628 billion in cost growth over the life of its programs — or 54 percent more than the projected cost when programs began — with schedule growth overshooting targets by 29 percent at an average capability delivery delay of more than two years. Over the last year, 42 MDAPs reported a combined total acquisition cost increase of more than $80 billion. Nine programs that saw cost estimates increase by over 25 percent made up more than half of that total. While some of that is driven by increased procurement numbers, such as with the Joint Air-to-Surface Standoff Missile for the Air Force, those changed procurement plans are not the major driver of the cost increase. However, it's not all bad fiscal news: The remaining 43 MDAPs saw a cost decrease of more than $16 billion. And 19 programs that increased procurement managed to drive costs down through those updated plans. One worrisome trend the GAO highlighted is the lack of factoring in cybersecurity to early development of key performance parameters on MDAPs. The watchdog dug into a sample of 42 MDAPs as a test case, it and found that 25 of those programs had zero cybersecurity factored into the key performance parameters. Another 10 programs had one KPP related to cybersecurity, which is unlikely to be enough in the modern, wired world. For the middle-tier programs, which are designed for rapid prototyping and fielding, the GAO warned there is “inconsistent cost reporting and wide variation in schedule metrics” across the programs, adding that this poses “oversight challenges for Office of the Secretary of Defense and military department leaders trying to assess performance.” However, the watchdog agency also said the Department of Defense is in the process of addressing those issues. One notable program challenge identified in the report: The Navy's presidential helicopter replacement program, known as the VH-92A, has yet to “demonstrate that it can meet the requirement to land on the White House South Lawn without causing damage.” Parts of the helicopter are too hot, which will damage the lawn under “certain conditions.” As a result, the program is studying everything from lawn surface treatments to changes in aircraft design. “Due to concurrency in the program, which entered production while simultaneously addressing problems identified during the operational assessment, a design change to address this or other deficiencies discovered in the future may require modifications to units already in production,” the GAO found. https://www.defensenews.com/pentagon/2020/06/03/heres-the-newest-price-tag-for-dods-arsenal-of-equipment/

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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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  August 25, 2020 | International, Aerospace

  US Army awards air-launched effects contracts for future helicopters

  By: Jen Judson WASHINGTON — The U.S. Army has awarded 10 contracts worth a total of $29.75 million to companies to provide mature technologies in the realm of air-launched effects, or ALE, for future vertical lift aircraft that are expected to come online around 2030, service aviation officials have told Defense News. Raytheon, Alliant Techsystems Operations of Northridge, California, and Area-I of Marietta, Georgia, were awarded contracts to develop air vehicles. L3 Technologies, Rockwell Collins and Aurora Flight Services Corporation were awarded contracts to provide mission systems. And Raytheon, Leonardo Electronics US Inc., Technology Service Corporation of Huntsville, Alabama, and Alliant Techsystems Operations LLC of Northridge, California, received contracts to provide ALE payloads. Through ALE, the Army hopes to provide current and future vertical lift fleets with “the eyes and ears” to penetrate enemy territory while manned aircraft are able to maintain standoff out of range of enemy attack, Brig. Gen. Wally Rugen, who is in charge of the Army's FVL modernization efforts, said in an exclusive interview with Defense News. “To do that, that has a whole host of capabilities embedded in it, and I would say it's not just the eyes and ears, but it's also, what we are finding, is the mouth, so our ability to communicate by bringing mesh network capabilities, by bringing an ability to hear in the electronic spectrum, and, again, the ability to collect in that spectrum so we can find, fix and finish on pacing threats,” he added. The Army plans to take these already technically mature capabilities through additional technology maturation, Col. Scott Anderson, the unmanned aircraft systems project manager for the Army's Program Executive Office for Aviation, said in the same interview. “We're looking for high technology readiness levels, so best of breed,” he said, “that we can buy and then we don't have to develop, spend a lot of developmental dollars getting ready to get out the door in a prototype.” The air vehicle, payloads and missions systems will all fit into a government-owned architecture by fiscal 2024. The service will first look at each major component of ALE individually, rather than as a whole system, to assess readiness, Anderson said. That will run through most of 2021. Then in 2022, the Army will take those capabilities and bring them together into a full system prototype working with Georgia Tech, which is helping the service write the underpinnings of the reference architecture, he added. In the final phase, the Army will integrate the system onto a platform, first targeting the Gray Eagle and AH-64 Apache attack helicopter. Ultimately the ALE capabilities to come out of the effort will be targeted for the Future Attack Reconnaissance Aircraft (FARA) ecosystem, Anderson said. The Army is planning to field both FARA and a Future Long-Range Attack Aircraft (FLRAA) in the early 2030s. “We want to mature the [ALE] ecosystem and then have it ready to hand off to FARA in full bloom,” Rugen added. The Army has been looking at ALE since roughly late 2017, Rugen said, and has been working to refine the associated capabilities development documents for several years. Army Futures Command Commander Gen. Mike Murray signed an abbreviated capabilities development document in May. The service has been pleased with what it has seen so far in live prototype experimentation and physics-based modeling within the science and technology community and is prepared to move quickly on the effort, Rugen said. The Army selected Area-I's ALTIUS, the Air-Launched, Tube-Integrated Unmanned System, to launch from a rotary-wing test aircraft — a UH-60 Black Hawk — and was able to demonstrate the concept from a high altitude in August 2018. Then the service demonstrated the concept again during a ground robotic breach exercise at Yakima Air Base in Washington state in 2019 as well as a launch from a Black Hawk flying at a lower altitude — roughly 100 feet or less. In March, at Yuma Proving Ground, Arizona, the Army demonstrated multiple ALEs launched from a Black Hawk at very low altitudes to “maintain masking,” Rugen said. “We got our mesh network extended out to about 60 kilometers, so we were pretty happy with, again, the requirements pace and the experimentation pace with that.” The program will evolve beyond 2024 as the capability will align more closely with fitting into future formations. The Army could award future contracts to integrate the capability or could establish follow-on Other Transaction Authority contracts — which is the type of contract mechanism used for the 10 awardees that allows the Army to move faster to rapidly prototype. “We have the contractual mechanisms” to be “flexible and responsive,” which is key in a program like ALE, Joe Giunta, executive director of Army Contracting Command at Redstone Arsenal, Alabama, said. Instead of looking for a vendor that could deliver every aspect of a system, “we can harvest from across multiple different vendors, who bring, if you will, the best characteristics,” Patrick Mason, the deputy PEO for Army Aviation, added. “Then as they merge into our government reference architecture and our open system approach, we are then able to bring those together to create a much more capable product,” he said, that “fits into the longer term on how we can modify that as technology comes along and we can ramp on increases in technologies as we get out into the '23, '24 time frame and then further into the future as we look out to FY30 and the fielding of FARA, FLRAA and the full establishment of the FVL ecosystem.” The Army released a notice to industry Aug. 12 looking for input on technology that could further advance the capability of ALE against sophisticated adversaries with plans to host an industry day in September. While the service will prototype mature technologies in the near term, Mason said, “when you look at the '25 and '26 time frame, there will be better technologies that are developed around the payload side of the house, advancements in air vehicles or advancements in the missions systems.” The RFI is “looking at the next increment that is out there as we move from now in 2020 to what we would have as a residual capability in '24 to what we could move to in 2030,” Mason said. https://www.defensenews.com/land/2020/08/24/army-awards-air-launched-effects-contracts-for-future-helicopters/