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By: Sebastian Sprenger COLOGNE, Germany — Germany Defence and Interior ministry officials are pushing for the creation of a new agency this year that will study disruptive technologies relevant to Germany's defense and security. A decision on the way forward is expected “shortly,” a Defence Ministry spokesman told Defense News on Wednesday. Planning is underway to get the green light from the Finance Ministry, a necessary step because the agency would be set up as an “in-house” limited liability corporation, according to the spokesman. If all goes according to plan, insiders believe Cabinet-level consideration of the effort could come as early as September. While there is no official word on the exact timing, the spokesman said creating the agency is firmly on the calendar for 2018. The full name for the outfit is “Agentur für Disruptive Innovationen in der Cybersicherheit und Schlüsseltechnologien,” or ADIC. Its name first popped up in the coalition-government agreement between Chancellor Angela Merkel's Christian Democratic Union and Social Democrats in March. The document postulated that the agency, overseen by the two ministries for interior and exterior security, would help ensure Germany's “technological innovation leadership.” Also requested in that document was the creation of an “IT security fund” that would help protect related key technologies. Defence Minister Ursula von der Leyen referred to the coming agency in a speech in May, equating its purpose to that of the Pentagon's Defense Advanced Research Projects Agency, otherwise known as DARPA. She presented the idea as part of a wider plan toward deep-futures thinking on cybersecurity matters, which also includes a study program at the Bundeswehr University in Munich. Under the relatively new shift to emphasize all things cyber in the German military, the Defence Ministry's Cyber Innovation Hub, created last year, is slated to survey the domestic technology startup scene for ideas with potential military application. Asked by Defense News what status the upcoming agency will accord to the field of artificial intelligence, ministry officials responded that such projects “generally” would be eligible to receive temporary funding if they are deemed relevant to the mission. Much remains unknown about the German military's approach to artificial intelligence, famously dubbed by Russian President Vladimir Putin last year as the technology that holds the key to ruling the world. “The research area of artificial intelligence and potential applications by the Bundeswehr are being substantively reviewed,” the defense spokesman said. Whether the new ADIC or any of the existing organizations inside the Defence Ministry would get involved remains an open question, he added. Some experts fear Germany is falling behind the the United States' and China's enormous efforts in artificial intelligence, though government officials have said they believe the country's talent base and emerging policy framework can ensure success. A whitepaper released Wednesday by the Cabinet agency leading the push on AI, the Ministry of Education and Research, proclaimed the goal of making German-made AI a “seal of quality recognized all over the world.” The document will lead to a more comprehensive strategy by late November. It makes no explicit mention of any military or defense applications. Efforts already exist within the armed forces and the wider government to employ data-mining and predictive-analysis tools, which fall under the broader definition of artificial intelligence. For example, defense officials have touted experiments with a forecasting application developed to predict worldwide crises. Officials also try to play up the Bundeswehr's geekiness in its search for new recruits. A current online marketing campaign showcases the career field of a Bundeswehr University professor employing AI techniques to analyze terror attacks for patterns. https://www.defensenews.com/global/europe/2018/07/18/germany-wants-its-own-version-of-darpa-and-within-the-year

By Anthony Capaccio The U.S. Army is delaying approval of full-scale production of BAE Systems Plc's new self-propelled howitzer, citing the need to improve quality before proceeding with additional contracts options valued at about $1.3 billion. The Army postponed triggering the most lucrative phase of the program for London-based BAE to “adequately address quality control issues,” service spokeswoman Ashley John said in an email Wednesday. “The Army will continue to work closely with BAE leadership to resolve the concerns.” The delay came after Bloomberg News reported last week that the howitzer's manufacture was hobbled by poor welding, supply-chain problems and delivery delays. Among the setbacks have been a six-month halt in deliveries last year because of welding flaws and the return of 50 of 86 vehicles that had already been delivered to repair production deficiencies. The U.S. Army is delaying approval of full-scale production of BAE Systems Plc's new self-propelled howitzer, citing the need to improve quality before proceeding with additional contracts options valued at about $1.3 billion. The Army postponed triggering the most lucrative phase of the program for London-based BAE to “adequately address quality control issues,” service spokeswoman Ashley John said in an email Wednesday. “The Army will continue to work closely with BAE leadership to resolve the concerns.” The delay came after Bloomberg News reported last week that the howitzer's manufacture was hobbled by poor welding, supply-chain problems and delivery delays. Among the setbacks have been a six-month halt in deliveries last year because of welding flaws and the return of 50 of 86 vehicles that had already been delivered to repair production deficiencies. Self-propelled 155mm howitzers are the centerpiece of the Army's artillery. The weapon is mounted on a tracked vehicle and travels with another that hauls ammunition. The Army's “long-range precision strike” program tops the service's list of modernization priorities. “We are working very closely” with the Army and the Defense Contract Management Agency, which oversees contractor performance, “and are confident the actions we have taken will support the effective transition to full production,” BAE spokeswoman Alicia Gray said in a statement. The Army eventually wants to buy 576 howitzers and ammunition carriers in an $8.1 billion program. An initial $413.7 million contract laying the groundwork for full production was awarded in December. A full-production decision would have increased vehicle production to about 60 from 48 a year. The program has been in low-rate production for several years. Gray said last week that the company is investing about $125 million to upgrade equipment to prepare “for an expanded production portfolio and accommodate the expected surge in customer requirements.” ‘Tough-Love' Approach The delay “is consistent with the increasing Army ‘tough-love' approach to contractor program-execution challenges,” such as its continuing refusal to accept delivery of Boeing Co.'s AH-64 Apache attack helicopters because of corrosion of a critical rotor assembly part that needs to be fixed, according to James McAleese of McAleese & Associates, a McLean, Virginia-based defense consulting firm. Contractors should expect “quality assurance scrutiny to increase” as the Army “drives aggressive increases in multiple production programs” for missiles, ammunition and ground combat vehicles, he said. Sections of the howitzers are initially produced at BAE's York, Pennsylvania, facility with final assembly in Elgin, Oklahoma. The program has a strong advocate in Senator Jim Inhofe of Oklahoma, the No. 2 Republican on the Senate Armed Services Committee. In its version of the fiscal 2019 defense policy bill, the panel authorized spending $110 million more than the $351.8 million requested. In a new report, the Pentagon's testing office said that testing of the howitzer at Fort Riley in Kansas found it was “operationally effective,” providing accurate fire as it traveled with other units of a brigade combat team while evading enemy counter-fire. That, however, is when the howitzers weren't dogged by reliability problems, according to the report by testing office Director Robert Behler. It cited “the number of breech, cannon, and firing train sub-component failures” and “interruptions from stuck and ruptured primers” that “contributed to delays in mission completion.” The Army's leadership is on a campaign to assure the public it's improving the oversight of its major acquisition programs, including getting its new Futures Command ready for initial operations. The Army last week chose Austin, Texas, as the location for the command that will consolidate brainpower to evaluate future threats facing the Army, decide on the technology needed to counter them and oversee development of that technology through existing commands. https://www.bloomberg.com/news/articles/2018-07-18/bae-s-1-3-billion-contract-for-howitzer-delayed-by-u-s-army

By: David B. Larter WASHINGTON — The U.S. Navy needs to get the permission of lawmakers to move $62.7 million to fix a number of hiccups in its high-tech new carrier, the Gerald R. Ford, during its post-shakedown availability that kicked off July 15. The money, part of a larger DoD reprogramming request from June, will go toward fixing a number of issues that arose during its recently concluded post-delivery trials, according to a copy of the request obtained by Defense News. According to the document, the Navy needs to move: $12.7 million to fix “continuing technical deficiencies” with the Advanced Weapon Elevators. $30 million for “tooling and repair” of the main thrust bearings, issues that the Navy has blamed on the manufacturer. $20 million for additional repairs, a prolonged post-shakedown availabilty, and parts and labor. By: David Larter The Navy told Congress in May that it was going to exceed the Ford's $12.9 billion cost cap because of needed repairs and alterations. The $62.7 million was part of that total repair bill. The repairs and technology setbacks extended the Ford's PSA at Huntington Ingalls' Newport News Shipbuilding from eight months to 12 months, according to a statement from Naval Sea Systems Command, and significantly added to the cost. The ship will then proceed to full-ship shock trials ahead of its first deployment, a priority pushed by Senate Armed Services Committee Chairman Sen. John McCain, R-Ariz., according to the document. Since its delivery, the Ford has spent 81 days at sea during the eight times it was underway, a July 15 NAVSEA release said. “The ship has completed 747 shipboard aircraft launches and recoveries against a plan of approximately 400,” the release said. “CVN 78 successfully completed fixed-wing aircraft/helicopter integration and compatibility testing, air traffic control center certification, JP-5 fuel system certification, daytime underway replenishment capability demonstration, ship's defensive system demonstration, Dual Band Radar testing, and propulsion plant operations.” https://www.defensenews.com/naval/2018/07/18/us-navy-asks-congress-to-shift-millions-to-fix-its-new-high-tech-supercarrier/

By: Valerie Insinna FARNBOROUGH, England — The U.S. Air Force's contract for a replacement to the UH-1N Huey helicopter could be delayed until fiscal 2020 unless Congress adds another $83.4 million to the program. According to a reprogramming request sent by the Defense Department to Congress, the UH-1N replacement effort is currently considered a “high risk” program due to a pre-award protest by competitor Sikorsky, a Lockheed Martin subsidiary, which was dismissed in May. The protest had temporarily put a hold source selection, deferring a contract planned for June to September. Current funds would expire at the end of the fiscal year on Sept. 30, meaning that if an award was further delayed it would take until FY20 to inject more money to continue on with the program, the request stated. Air Force Secretary Heather Wilson acknowledged in May that the contract could be awarded sometime this fall. “We're going to try and not let that slip too much because we know we need to get the Hueys replaced, but we did get a delay,” she had said. The Air Force's aging UH-1Ns are most well-known for the role they play defending nuclear missile sites, and it is the importance of this mission that has led to criticism from leaders in Congress and in the U.S. military — including U.S. Strategic Command head Gen. John Hyten — who have said the service needs to move more quickly to procure new helicopters. Three companies are competing for the Huey replacement award, with the first of a total of 84 new armored helicopters expected for delivery as early as 2020 — although if a contract is delayed until FY20 it seems likely that fielding will not be possible for another couple of years. Sikorsky is offering the HH-60U, a version of its UH-60 Black Hawk helicopter with modifications like a rescue hoist and electro-optical sensor. Sierra Nevada Corp. has pitched a modernized, life-extended version of used Army UH-60L aircraft that its calling “Sierra Force.” Meanwhile, Boeing and Leonardo are partnering on the MH-139, a militarized version of the Italian firm's civilian AW139 helicopter. Boeing submitted the final proposal for the aircraft Tuesday, it confirmed in a statement. “The Boeing MH-139 is capable, affordable, and ready to serve the United States Air Force's urgent UH-1N replacement needs,” the company said. "With a hot production line in Philadelphia, we are well-positioned to meet the USAF's delivery requirements for fielding this vital platform as soon as possible.” While the requirements for the helicopter were not made public, the Air Force has specified nine fully loaded troops without needing to be refueled for an endurance of at least 225 nautical miles. They also should be able to fly three hours while maintaining a 135-knot cruise speed. https://www.defensenews.com/air/2018/07/18/contract-award-for-air-forces-huey-replacement-helicopter-at-risk-of-delay-until-fy20

By: Daniel Cebul WASHINGTON — The U.S. Air Force has awarded Rolls-Royce a sustainment contract to maintain, repair and overhaul engines for the Air Force Global Hawk and U.S. Navy Triton fleets. The six-year, $420 milllion indefinite-delivery, indefinite-quantity contract also includes sustainment engineering services for Rolls-Royce's AE 3007H engine, the same one that powers the Global Hawk and Triton, as well as several commercial airliners. The contract services will be completed at Tinker Air Force Base in Oklahoma, where Rolls-Royce and the Air Force have a public-private partnership to operate an engine depot. “Rolls-Royce has a long and successful history of supporting U.S. Air Force and Navy engines, and our innovative public-private partnership at Tinker Air Force Base has enabled us to work together in a new way and will be a key component of maximizing engine availability," said Paul Craig, president of Rolls-Royce's defense services division. “This new contract includes engine services for the Navy's Triton fleet, and we look forward to continuing this public-private partnership for years to come, focusing on customer support and enhancing mission success,” he added. The Global Hawk has been suggested as a possible alternative to the JSTARS battle management program. Gen. Mike Holmes, head of Air Combat Command, told reporters in February the Global Hawk could see further investment as the service looks to replace JSTARS' ground moving target indicator, or GMTI, radar capability. "The Global Hawk Block 40 is certainly not the same thing as JSTARS, but it does provide useful GMTI information,” Holmes said. “We'll spend some money to bring that information and make it more useful in real time.” The Triton UAV is preparing to take on a key role in intelligence, surveillance and reconnaissance missions for the Navy, given its high-altitude, long-endurance capabilities. While the Navy relies on the P-8 Poseidon for anti-submarine surveillance, the Triton will perform high-altitude ISR to fill gaps. The Australian government announced June 26 it will purhcase six Northrop Grumman MQ-4C Tritons for more than $1 billion. When life sustainment costs are calculated into the deal, the estimated value increases to more than $5 billion. https://www.defensenews.com/air/2018/07/17/us-air-force-awards-rolls-royce-with-global-hawk-triton-sustainment-contract/

By Stephen Carlson July 17 (UPI) -- Lockheed Martin out of Baltimore, MD. has received a $450.7 million modification to an existing contract for production of four Multi-Mission Surface Combatant ships for the the Kingdom of Saudi Arabia. Work will be performed in Crozet, Va., Iron Mountain, Mich., Milwaukee, Wisc., Sweden, Great Britain and other locations across the United States. The contract is expected to be completed by October 2025. Foreign military sales funding for the Kingdom of Saudi Arabia in the amount of $225.6 million will be obligated at time of award . The Multi-Mission Surface Combatant is a highly maneuverable surface warfare ship capable of coastal and operations in the open ocean. The MMSC is equipped with the COMBATSS-21 Combat Management System. It is based off the AEGIS system used by air defense destroyers around the world. The vessel integrates the Mk110 57mm deck gun into the system as well, allowing for more accurate fires against incoming targets like aircraft and small boats. It can mount the Mk 41 Vertical Launch System which can mount various surface-to-air and surface-to-surface weapons like the Standard and the Tomahawk. https://www.upi.com/Defense-News/2018/07/17/Lockheed-awarded-4507M-contract-for-Saudi-patrol-ships/3721531833764

FARNBOROUGH, England — The Air Force is still not moving fast enough to recruit the software talent that it needs to harness emerging technologies like artificial intelligence, its acquisition head said Tuesday. "I don't think we're attracting enough people. Whether they're the right people or not, I think that's a separate question. I'm not sure that we'll be able to answer that until we're working with a broader set of the industry base that's working AI,” Will Roper, the Air Force's undersecretary for acquisition, technology and logstics, told reporters at Farnborough Airshow. “I contend that the companies driving AI are a different breed of company than those who drive evolution in hardware, especially companies that drove hardware that have gotten us to today's military. The paces are faster, turnovers are quicker. Software is done in month cycles not year cycles.” Over the past year, the Air Force has charted some successes and some failures in its attempts to integrate tech like AI and big data analytics with legacy hardware systems like fighter jets or air operations center. It has established the Kessel Run Experimentation Lab, a group of industry and airmen in Boston that are iterating new capabilities for air operations centers. Instead of rolling out a large software package, the coders focus on app-like updates that can more rapidly insert new functionality into the AOC. But it's also suffered setbacks — most notably, Google's stated intention to withdraw from future Defense Department projects after some employees objected to the company's work on Project Maven, a program would allow the Pentagon to use AI to review footage from drones. Some have worried that could have a chilling effect on future efforts. Roper said that a big focus of his job is changing how the Air Force approaches software. In the past, software was a product that could be bought in cycles, just like a physical product like a missile or aircraft. Now, it's a service that must be reworked constantly, he said. “You get a good set of coders in, they can push out so much code per month. You put them with the user that's going to use the code and together they're able to collaborate to make sure that the developer is creating something that the operator is using,” he said. “That's working very well for us in Boston, and we're looking to expand that. That's the basic mechanism to move towards AI. We're going to need people that are working with us that are software people that are working, tweaking algorithms with the users that use them, and it's probably a different company than have worked with us over the past 10 years.” The Air Force has to get those companies under contract faster, in weeks instead of months, Roper said. It's looking for opportunities to use contract vehicles specifically delegated for small businesses and to use AFWERX — its outreach arm to nontraditional contractors who are creating promising commercial technologies — to introduce startups to the service. But Roper acknowledged there was no easy answer to the problem. One possible way to inject AI into Air Force programs — although a mundane one — is to use it for predictive maintenance technologies that use sensors to forecast when a component will break, said Air Force Under Secretary Matt Donovan. “It's very exciting for us and I think it holds a lot of potential to reduce our sustainment costs,” he said, noting that sustainment makes up a whopping 70 percent of the life-cycle cost of any given product. Roper agreed that sustainment was a great area to begin employing AI, and that experience could help the Air Force begin to figure out how to use the technology for classified applications. https://www.defensenews.com/digital-show-dailies/farnborough/2018/07/17/air-force-looks-to-accelerate-artificial-intelligence-contracts

By Anthony Capaccio Capping off a contentious contracting tussle with President Donald Trump, Boeing Co. received a $3.9 billion contract to continue development, modification and testing of two new aircraft to serve as Air Force One, according to two people familiar with the decision. The planes, Boeing 747-8s, would be delivered by December 2024. That would be Trump's last full year in office if he wins a second term. Congressional committees were informed of the decision on Tuesday. Trump reached an informal deal in late February with Chicago-based Boeing for the fixed-price contract that a White House spokesman said at the time would save taxpayers $1.4 billion from an earlier projection for buying and outfitting two presidential jets. But public estimates suggest the savings would be far less -- perhaps a few hundred million dollars. Trump shook the defense industry -- and put all large U.S. companies with government contracts on notice -- when he began criticizing the Air Force One contract more than a month before he took office in January 2017. On Dec. 6, 2016 he wrote on Twitter that “Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!” That surprising statement was followed by talks with Boeing Chief Executive Officer Dennis Muilenburg. After a visit to Trump's Mar-a-Lago resort in January, Muilenburg said, “We're going to get it done for less than that, and we're committed to working together to make sure that happens.” Announcement of the contract came the same day Trump said in an interview with CBS that the new aircraft will be painted “be red, white and blue, which I think is appropriate,'' instead of its traditional white, blue and light-blue color scheme. The Air Force said last year that it saved some money when the president reached a preliminary deal with Boeing for two 747 jumbo jets to serve as Air Force One, taking advantage of an unusual limited-time discount on planes once bound for Russia. Much of the costs for the presidential plane come from pricey and complex modifications required to turn Boeing's iconic hump-backed jets into the flying fortresses that ferry U.S. presidents around the world. The jets would be outfitted with dual auxiliary power units, rather than the one electrical power system standard for commercial jets, along with a complex communications system, work and rest quarters for the first family, elevators to ease boarding, self-defense capabilities and other features, according to Air Force budget documents. The Air Force decided in 2015 to award Boeing a sole-source deal to build the Air Force One replacements without competition while insisting that subcontractors be allowed to bid on its specialized equipment. The service determined then that Boeing's aircraft was the only one manufactured in the U.S. “that when fully missionized meets the necessary critically important capabilities” that the president needs. https://www.bloomberg.com/news/articles/2018-07-17/boeing-said-to-get-3-9-billion-contract-for-new-air-force-one

By: Andrew C. Jarocki WASHINGTON — Airbus has created a new advanced data analytics system for the defense market, gathering data from vehicles to better plan maintenance and study mission performance. The firm announced the program, SmartForce, at the 2018 Farnborough Airshow. The program is meant to “enable substantially more efficient maintenance by drilling into the wealth of data acquired by new generation helicopters and aircraft,” according to a company news release. The company added it will “more rapidly perform root-cause analysis and faster trouble shooting.” The use of artificial intelligence to make sense of data has become a growing focus for the defense and intelligence community, as has cloud computing for handling the massive volumes of data. “Our digital analytics services support the goal of enhanced mission readiness of our operators' aircraft," said Stephan Miegel, head of military aircraft services at Airbus Defence and Space, “and they provide predictive solutions which all contribute to reduced workload and costs.” https://www.defensenews.com/digital-show-dailies/farnborough/2018/07/17/following-industry-trend-airbus-dives-into-data/