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  • Contract Awards by US Department of Defense - February 25, 2020

    February 27, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - February 25, 2020

    ARMY Palantir USG Inc., Palo Alto, California (W56KGY-20-D-0005); and BAE Systems Information and Electronic SYS INT INC, San Diego, California (W56KGY-20-D-0006), will compete for each order of the $823,263,105 firm-fixed-price contract to upgrade/replace components found in the Distributed Common Ground System-Army. Bids were solicited via the internet with six received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 24, 2027. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. Northrop Grumman Systems Corp., Herndon, Virginia, was awarded a $42,088,702 hybrid (cost-no-fee, cost-plus-fixed-fee, cost-plus-incentive-fee, firm-fixed-price, fixed-price-incentive) modification (P00054) to contract (W58RGZ-17-C-0014) for contractor logistics support services for government-owned fixed-wing fleet performing Special Electronic Mission Aircraft missions. Bids were solicited via the internet with three received. Work will be performed in Herndon, Virginia, with an estimated completion date of Aug. 31, 2020. Fiscal 2020 operations and maintenance, Army funds in the amount of $42,088,721 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. Leidos Inc., Reston, Virginia, was awarded a $19,653,151 modification (P00023) to contract W52P1J-18-C-0002 to provide Class V munitions supply support for all ammunition stocks accounted for by 1st Sustainment Command (Theater) to U.S. military/government components, Department of Defense agencies, and, as required, coalition forces in the Central Command Area of Responsibility. Work will be performed in Kuwait City, Kuwait, with an estimated completion date of Feb. 28, 2021. Fiscal 2020 operation and maintenance, Army funds in the amount of $19,653,151 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. Unisys Corp. Federal Systems, Reston, Virginia, was awarded a $14,029,965 cost-no-fee, firm-fixed-price contract for an 18-month bridge to continue support for the Army Enterprise Service Desk. Bids were solicited via the internet with one received. Work will be performed in Augusta, Georgia, with an estimated completion date of Sept. 25, 2021. Fiscal 2020 operations and maintenance, Army funds in the amount of $14,029,965 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-20-C-0010). A. WBE-CCI JV One LLC,* Itasca, Illinois, was awarded an $11,877,000 firm-fixed-price contract for construction of a pre-engineered metal hangar with conventional construction for adjacent support shop, administrative and non-destructive inspection testing spaces. Bids were solicited via the internet with four received. Work will be performed in Klamath Falls, Oregon, with an estimated completion date of March 9, 2021. Fiscal 2018 military construction, Army National Guard funds in the amount of $11,877,000 were obligated at the time of the award. U.S. Property and Fiscal Office, Salem, Oregon, is the contracting activity (W50S8Z-20-C-0001). PAS MRO Inc.,* Irvine, California, was awarded a $9,787,000 firm-fixed-price contract to overhaul UH-60 tip caps. Bids were solicited via the internet with eight received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 25, 2025. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-20-D-0026). NAVY Deloitte Consulting LLP, Arlington, Virginia; Boston Consulting Group Federal Corp., Bethesda, Maryland; Whitney, Bradley & Brown Inc., Reston, Virginia; Mid-Atlantic Technical and Executive Consulting LLC,* Arlington, Virginia; and CACI Inc., Federal, Chantilly, Virginia, are awarded a cumulative not-to-exceed $249,000,000 indefinite-delivery/indefinite-quantity (IDIQ) contracts for the Navy's System-Level Cost Analysis with Total Ownership Cost Analysis initiative. The competitive ordering period for both firm-fixed-price or cost-plus-fixed-fee type orders shall not exceed five years. Work will be performed at contractor and vendor facilities as determined on individual orders and is expected to be completed by February 2025. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $15,000 will be obligated at time of award to fulfill the minimum guarantees of the IDIQs and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with seven offers received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-20-D-2425, N00024-20-D-2431, N00024-20-D-2432, N00024-20-D-2433, and N00024-20-D-2434). BAE Systems Land & Armaments L.P., Sterling Heights, Michigan, is awarded a $113,548,696 modification to exercise options for the fixed-price-incentive (firm target) contract line item numbers 4001 and 4005 portions of a previously awarded contract (M67854-16-C-0006). This modification is for the purchase of 26 amphibious combat vehicles and other associated production costs. Work will be performed in York, Pennsylvania (60%), Aiken, South Carolina (15%), San Jose, California (15%), Sterling Heights, Michigan (5%), and Stafford, Virginia (5%), and is expected to be completed in April 2022. Fiscal 2020 procurement (Marine Corps) funds in the amount of $113,548,696 will be obligated at the time of award and will not expire at the end of the current fiscal year. The contract was based on full and open competition with the solicitation publicized on the Federal Business Opportunities website with five offers received. The option contract line item numbers were included within that contract and are being exercised in accordance with Federal Acquisition Regulation 52.217-7 option for increased quantity-separately priced line item. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-16-C-0006). Vertex Aerospace LLC, Madison, Mississippi, is awarded a $23,925,125 modification (P00005) to a previously awarded firm-fixed-price, cost contract (N00421-19-D-0031). This modification exercises the option to provide contractor owned and operated aircraft to Navy fleet customers, foreign military sales customers, and contractors as well as Department of Defense and other government agencies in support of the Contracted Air Services (CAS) program. The CAS program provides airborne threat simulation capabilities to train shipboard and aircraft squadron weapon systems operators and aircrew on how to counter potential enemy electronic warfare and electronic attack operations in today's electronic combat environment. Work will be performed in Virginia Beach, Virginia (50%); Coronado, California (40%); and Kauai, Hawaii (10%), and is expected to be completed in February 2021. No funds are being obligated at time of award; funds will be obligated on individual orders as they are issued. The Naval Air Warfare Center, Aircraft Division, Patuxent River, Maryland, is the contracting activity. L3Harris Technologies Inc., Palm Bay, Florida, is being awarded a $14,693,123 modification to exercise priced options to a previously awarded firm-fixed-price contract issued by the Naval Information Warfare Systems Command. This modification increases the value of the basic contract by $14,693,123; the new total value is $61,180,747. This modification provides for the exercise of firm-fixed-price options for Commercial Broadband Satellite Program Unit Level Variant (ULV) hardware production units. ULV provides terminal-to-shore, space and terrestrial connectivity to significantly increase throughput for commercial satellite communication and provides redundancy for military satellite communications. Work will be performed in Palm Bay, Florida, and is expected to be completed by August 2020. Fiscal 2019 shipbuilding and conversion (Navy), and fiscal 2019 and fiscal 2020 other procurement (Navy) funds in the amount of $14,693,123 will be obligated at the time of award and will not expire at the end of the fiscal year. The Naval Information Warfare Systems Command, San Diego, California, is the contracting activity (N00039-14-C-0041). DCS Corp., Alexandria, Virginia, is awarded a $10,649,613 modification (P00027) to a previously awarded cost reimbursable, cost-plus-fixed-fee contract (N00421-17-C-0043). This modification provides for the planning and execution of test efforts for aircraft and weapons components through a Milestone C decision to include developmental and operational test and evaluation efforts associated with modifications to existing commercial-off-the-shelf and non-developmental items, which require engineering, design, integration, test and evaluation. This modification also provides contractor services support in administration, engineering and management functions in support of the Naval Test Wing Atlantic, Naval Air Systems Command and the Naval Air Warfare Center Aircraft Division. Work will be performed in Patuxent River, Maryland, and is expected to be completed in February 2021. Working capital (Navy) funds in the amount of $3,062,000 and fiscal 2020 operations and maintenance funds in the amount of $812,739 will be obligated at time of award, $812,739 of which will expire at the end of the current fiscal year. The Naval Air Warfare Center, Aircraft Division, Patuxent River, Maryland, is the contracting activity. Progeny Systems Corp.,* Manassas, Virginia, is awarded a $9,913,382 cost-plus-fixed-fee delivery order (N68335-20-F-0068) against basic ordering agreement (N68335-18-G-0039). This delivery order provides for continued maturation of the Expeditionary Mission Planning System. Work will be performed in Manassas, Virginia (65%) and Middletown, Virginia (35%), and is expected to be completed in February 2022. Fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $9,100,000 will be obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Warfare Center, Aircraft Division, Lakehurst, New Jersey, is the contracting activity. Vigor Marine LLC, Portland, Oregon, is awarded a $9,329,088 firm-fixed-price contract for the maintenance, repair and preservation of Caisson Six. Work will be performed in Seattle, Washington, and is expected to be completed by December 2020. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $9,329,088 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S. Code 2304(c)(1) (only one responsible source and no other supplies or services will satisfy agency requirements). The Puget Sound Naval Shipyard and Intermediate Maintenance Facility code 400, Bremerton, Washington, is the contracting activity (N4523A-20-C-1053). Raytheon Co., Missile Systems, Tucson, Arizona, was awarded a $7,992,944 cost plus fixed fee modification to previously awarded contract (N00024-17-C-5405) for design agent engineering and technical support services for the Phalanx Close-In Weapon System, SeaRAM, and Land-based Phalanx Weapon System. Work will be performed in Tucson, Arizona, and is expected to be completed by January 2022. Fiscal 2020 weapon procurement (Navy) funding in the amount of $7,992,944 will be obligated at time of award and will not expire at the end of the current fiscal year. In accordance with 10 U.S. Code 2304(c)(1), this contract was not competitively procured; only one responsible source and no other supplies or services will satisfy agency requirements. Phalanx Close-In Weapon System is a fast-reaction terminal defense against low and high-flying, high-speed maneuvering anti-ship missile threats that have penetrated all other defenses. The Naval Sea Systems Command, Washington Navy Yard, District of Columbia, is the contracting activity. Awarded Feb. 24, 2020. The Boeing Co., St. Louis, Missouri, is awarded a $7,373,400 firm-fixed-price delivery order (N00019-20-F-0573) against basic ordering agreement (N00019-16-G-0001). This delivery order procures 30 A1 G-Model kits and 66 A3 E-Model kits in support of F/A-18E/F and EA-18G modifications. Work will be performed in El Segundo, California (86%); St. Louis, Missouri (6%); San Antonio, Texas (6%); and Mesa, Arizona (2%), and is expected to be completed in October 2023. Fiscal 2019 ($3,701,400) and fiscal 2020 ($3,672,000) aircraft procurement (Navy) funds in the amount of $7,373,400 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. AIR FORCE Tapestry Solutions Inc., San Diego, California, has been awarded a $28,390,620 for F-15 mission planning software development and maintenance. This contract provides for the F-15 software development of the v6.1 Mission Planning Environment and supports the F-15 Organizational Flight Program Suite 9.1 through sustainment of the previously-fielded v5.0 Mission Planning Environment for the Air Force and foreign country specific releases for the foreign military sales (FMS) client nations as well as the in-test v6.0 Mission Planning Environment. The foreign military sales effort allows continued support to incorporate requirements to provide country specific versions of Air Force Mission Planning Environment updates in accordance with each country specific FMS Letters of Acceptance between the U.S. government and the foreign government. The Mission Planning Environment updates will be fielded outside the continental U.S. to the foreign military sales costumers with current Letters of Acceptance in place with the U.S. government. Work will be performed in Maryland Heights, Missouri, and is expected to be complete by July 31, 2023. This contract involves foreign military sales to Canada, Saudi Arabia, Singapore, Korea and Qatar. Plans to include Japan and other countries are to be anticipated. This award is the result of a sole-source acquisition. Fiscal 2020, 2021, 2022 and 2023 and include operations and maintenance and research and development funds in the amount of $387,876 are being obligated at the time of award. Hanscom Air Force Base, Massachusetts, is the contracting activity (FA8730-20-C-0001). L3Harris Technologies Inc., Colorado Springs, Colorado, has been awarded a $22,990,454 cost reimbursement and cost-plus-incentive-fee contract for Transition-On and Ground Based Electro-Optical Deep Space Surveillance Upgrade Technical Maturation and Risk Reduction on the Maintenance of Space Situational Awareness Integrated Capabilities (MOSSAIC) acquisition. MOSSAIC will provide sustainment services for current and future ground-based Space Situational Awareness (SSA) sensors, SSA Command and Control systems, and Space Battle Management Command and Control capabilities in the Space and Missile System Center Space Domain Awareness Division Special Programs - Ground portfolio. Additionally, MOSSAIC provides for sustainment of and modernization of associated test and integration infrastructure capabilities supporting the Space Domain Awareness Division Special Programs - Ground portfolio. The MOSSAIC contract scope will also include modifications and upgrades for all MOSSAIC systems, it sustains or will sustain, to maintain operational performance and evolve system capabilities to meet new mission needs, as necessary. The location of performance is Colorado Springs, Colorado, and Dahlgren, Virginia. This awarded work is expected to be completed by Nov. 30, 2020. This award is a result of a competitive acquisition solicited on BetaSam and two offers were received. Fiscal 2020 operations and maintenance funds in the amount of $1,804,531 and fiscal 2020 research and development funds in the amount of $6,000,000 are being obligated at the time of award. The Space and Missile System Center Directorate of Contracting, Peterson Air Force Base, Colorado Springs, Colorado, is the contracting activity (FA8823-20-C-0004). Call Henry Inc., Titusville Florida, has been awarded a $10,096,797 predominantly fixed-price incentive modification (P00075) to previously awarded contract FA4610-18-C-0005, to exercise option year three. This modification provides management and support, maintenance and repair, operations, other services and minor alteration related to launch operations support. This modification brings the total cumulative face value of the contract to $60,535,156. Work will be performed at Vandenberg Air Force Base, California, and is expected to be completed by June 30, 2021. Fiscal 2020 operations and maintenance funds in the amount of $3,200,000 will be obligated at the time of award. The 30th Contracting Squadron, Vandenberg Air Force Base, California, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2094196/source/GovDelivery/

  • Trump announces $3B defense deal with India

    February 26, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Trump announces $3B defense deal with India

    By: The Associated Press NEW DELHI — U.S. President Donald Trump announced Tuesday that India has signed a deal to purchase more than $3 billion of advanced military equipment, including helicopters. The announcement comes as the president visits with Indian Prime Minister Narendra Modi in the Asian nation. Trump also said the two leaders made progress on what he describes as a “comprehensive trade deal" after bilateral talks. Modi, meanwhile, said the two had a productive exchange on issues including defense cooperation, energy and technology, adding that talks will continue. He also said that he and Trump have now met five times over the past eight months, noting that ties between the two nations is the “most important partnership of the 21st century." https://www.defensenews.com/global/asia-pacific/2020/02/25/trump-announces-3b-defense-deal-with-india

  • Germany’s to-do list: A spring of (in)decisions is brewing in Berlin

    February 25, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Germany’s to-do list: A spring of (in)decisions is brewing in Berlin

    By: Sebastian Sprenger MUNICH — As the European Union wrestles to assert its role in world affairs, its members are increasingly looking to Germany and France. But the two allies have yet to find their groove when it comes to weapons cooperation and joint operations. The recent Munich Security Conference added new assignments to Germany's to-do list, taking the already immense expectations of Berlin to a new level. Officials are slated to announce key program decisions this spring that could redefine the trans-Atlantic relationship on a political and industrial level. The government also wants to put teeth to the promise of an operational role together with France by initiating a naval protection mission in the Strait of Hormuz under an EU flag. But Germany is famously sheepish on defense matters, its coalition-government parties CDU and SPD are far apart on key strategic questions, and Defence Minister Annegret Kramp-Karrenbauer oversaw an intra-party struggle that some in Germany say left her weakened. Here's a look at some of the key items in Germany's portfolio: Speaking at Munich, French President Emmanuel Macron once again offered French nuclear weapons in the context of protecting EU members, now that the U.K. is leaving the bloc. He largely repeated his points from an earlier speech in Paris, which amounted to an overture to European allies to discuss the issue further. German officials appeared unsure about the whole idea, even though Munich Security Conference emcee Wolfgang Ischinger flagged the proposal as an open invitation that requires a formal response. When asked about the idea, Kramp-Karrenbauer stressed Germany's dependence on the NATO nuclear umbrella, which is underwritten by the U.S. arsenal. Since Macron has ruled out putting his country's atomic weapons under some kind of EU authority, what exactly is on the table, she wondered. For example, does the proposal imply some kind of European nuclear industry — a no-go for Germany? “We must have the conversation,” Kramp-Karrenbauer said. “But I can't imagine coming to a decision that would have us leave the American umbrella only to slip under a French one that is much smaller.” Creative law Germany previously punted on a Strait of Hormuz naval protection mission to protect cargo ships against Iranian harassment, but Berlin wants to try again. Doing it with the Americans is off the the table because Europeans are spooked by Washington's “maximum pressure” campaign, so a strictly European mission would be ideal. And since the French and the Dutch already have sent ships to patrol the crucial waterway under their own moniker, why not expand that mission into an EU-led affair? Putting the mission under the auspices of the European Union would require “better use” of permissions granted in the bloc's founding legal texts, Kramp-Karrenbauer told the Munich conference audience. According to a German Defence Ministry spokesman, that's a reference to Article 44 of the Treaty on European Union. The section says the European Council can authorize a group of countries to carry out certain missions if they have the desire and wherewithal to do so. As for the wherewithal, Kramp-Karrenbauer left open exactly what types of assets the German Navy would be able to contribute to a Strait of Hormuz mission. The timing also remains murky. While the minister mentioned the need for an EU summit on the topic, her spokesman said there was no information yet about when such a gathering could happen. Issue experts have said protecting global shipping lanes should be considered low-hanging fruit for Germany, as the mission is inherently defensive in nature. “It's the mission that Germany should have chosen months ago,” said Jeffrey Rathke, president of the American Institute for Contemporary German Studies at Johns Hopkins University. Tornado warning Replacing Germany's fleet of aging Tornado aircraft is a can of worms like no other. That's because a portion of the fleet is assigned to carry American nuclear-tipped gravity bombs into Russia in the event of a major war. Though largely symbolic, the idea of German pilots using German aircraft to deliver American nukes is something of a quiet cornerstone of trans-Atlantic relations. People here don't like to talk about it much, but the effect is significant. The Tornado aircraft are getting old, which means the nuclear weapons will soon need a new ride. And this is where things get even trickier: Each of the replacement candidates can satisfy one requirement of Berlin's decision-making calculus, but not all of them. Boeing's F-18 fighter jet would represent a political commitment to the United States as the guarantor of nuclear deterrence. In such a scenario, the Pentagon presumably would lean forward to quickly sort out the requisite modifications and certifications, which is no small matter when it comes to nuclear weapons employment. The Airbus-made Eurofighter, on the other hand, would dovetail with plans by Germany and France to build the Future Combat Air System — and prop up local industry at the same time. Airbus said it would consider a pick of the F-18 as a death knell for the futuristic program, a view that France is reportedly also pushing behind the scenes. At the same time, there is the question of the U.S. government's willingness to approve a European aircraft for the most sensitive of missions, especially when the Trump administration already feels cheated by the continent on defense and trade. The F-35 Joint Strike Fighter, once in the running, is not expected to make a return to the competition, the German Defence Ministry spokeswoman told Defense News. Kramp-Karrenbauer said she will decide by the end of March. Speaking at Munich, she also hinted at a new round of fundamental discussions about the nuclear-sharing mission in general. “That is the political dimension of the decision that we have to debate within the coalition,” she said. “I want to have that debate relatively quickly, as we need clarity.” Three strikes? The “Taktisches Luftverteidigungssystem,” or TLVS, is one of those German word creations that sounds as complicated as it is. The program would replace the venerable Patriot anti-missile system that's been in service for decades. Made by Lockheed Martin and its German junior partner MBDA, it boasts several new features, like 360-degree radar, interceptor coverage and open-data architecture. Crucially, Berlin wants complete control over all system components, as opposed to simply buying something akin to a license for using American-made gear, which is how many weapon sales work. While officials had been gung-ho about the program, things have gone quiet since last December, when the government disclosed that contract negotiations over the industry consortium's second offer weren't going as expected. At the time, the plan was to conclude talks by the end of the year, though that didn't happen. As of earlier this month, the talks were still ongoing, according to the defense spokeswoman. “The negotiations are on a good track,” she told Defense News. Once considered a must-have project by Berlin, TLVS' future may now look iffy, especially given there is talk of yet another, third offer to be solicited from the vendor team. https://www.defensenews.com/smr/munich-security-conference/2020/02/24/germanys-to-do-list-a-spring-of-indecisions-is-brewing-in-berlin/

  • The largest cyber exercise you’ve never heard of

    February 25, 2020 | International, Aerospace, C4ISR, Security

    The largest cyber exercise you’ve never heard of

    For years, the first time the Department of Defense's cyber forces faced high-end digital attacks was not in practice or in a classroom, but in actual operations. For the cyber teams that focused on offense, a playbook developed from years of National Security Agency operations guided their work. But on the defensive side, standards and processes needed to be created from scratch meaning, in part, there was a lack of uniformity and little tradecraft to follow. Because cyber leaders had focused on staffing, training opportunities for defensive cyber operators had been sparse. To help solve that problem, the Department of Defense is expected to award a contract worth roughly $1 billion later this year for a global cyber training environment. But in the meantime, some units across the joint force have gone so far as to create their own small-scale training events and exercises to keep their forces' skill sets sharp. Perhaps the best example of these efforts are the 567th Cyberspace Operations Group's “Hunt Event,” which has quickly grown to become one of the largest cyber exercises across the department. The bi-monthly exercise pits teams against each other in a competition for the coveted Goblet of Cyber trophy and bragging rights. The group aims to better train defensive hunters, improve defensive tactics, techniques and procedures and develop defensive tradecraft. “The point of this was that we didn't really have a good range space to play on that had an active and live adversary so we could, in theory, replay traffic and we could go in and generate some easy kill, low hanging fruit signatures for detection,” Capt. Reid Hottel, training flight commander at the 837th Cyber Operations Squadron, told Fifth Domain. “If we are supposed to be the primary counter to advanced persistent threats, the way that we were training was not like how we were fighting.” The exercises started roughly a year ago to teach operators how to hunt on networks. It's now evolved to where participants also work on leadership skills and build custom exploits on a large range with multiple stakeholders. In addition to the Air Force CPTs — the defensive cyber teams each service provides to U.S. Cyber Command — members from the Air Force Office of Special Investigations and Mission Defense Teams, specialized defensive cyber teams that will protect critical Air Force missions and local installations, also take part. At the most recent exercise in January, a representative from NASA participated. Now, the exercises have become so popular Hottel said other services are interested in participating in the future. This includes a Marine Corps CPT at Scott Air Force Base. Building better leaders and hunters To be the best, cyber leaders recognized their teams would have to beat the best and that meant training against the world's most advanced cyber threats. Some other forms of training — such as the popular capture the flag game, which involve teams trying to find “flags” such as files or scripts inside a network — are not always the most realistic form of training. “When we were fighting, we're up against advanced adversaries. We're up against adversaries that are using tactics, techniques and procedures that are just above and beyond what simple little [scripts] ... we were using in the past,” Hottel said. “This hunt exercise allows us to do that, whereas in the past, particularly in other flag exercises, we are not training at the APT level. We [were] training at the script kiddie kind of level and here we're training at a much higher difficulty, which stretches and grows our operators into being true hunters.” He added that the exercises are also helping develop tradecraft. “That's one thing that nobody really teaches, there's no commercial course that you can go buy that teaches tradecraft, that teaches the military away, that teaches the way that we use to find the APT, which in theory, should be ever evolving because our adversary is as well,” Hottel said. “These exercises have been really eye-opening to provide tradecraft development, to become hunters, to understand what it means to be a cyber protection team.” The exercise has evolved to include custom exploits, custom root kits, custom attacks and zero-day exploits within a real-world mission where in some cases hunters don't have any indictors of compromise that exist in the public domain. This means that there is no public reporting available on the exploits or tactics the adversary is using. Participants can hone their skills, by actively hunting on a network in order to find anomalies that could lead to trouble. “As hunters,” he said, “we don't necessarily have singular methodology, we don't necessarily have a unique way that we can go about finding advanced threats mostly because we haven't really been training like that.” The training is also helpful for new mission defense teams, which are just being officially resourced within the Air Force around local installations. By having those teams sit next to CPTs, who are using generally the same tools, they can learn about tradecraft and what to look for at the local level. During the most recent exercise, officials said it was the first time they intentionally tried to trip up participants. Organizers created fake attack chains to see how the players scoped an investigation into a network and deducted points for the amount of time they wasted following that lead. This technique helps teach teams how to scope investigations without going down “rabbit holes,” and not adequately planning, Lt. Christopher Trusnik, chief of training at the 835th Cyberspace Operations Squadron, told Fifth Domain. Beyond the technical hunting, this approach helped team leader to flex leadership muscles. “It was more of teaching that leadership technique of you plan for this, how do you investigate quickly and how do you triage your investigation,” Trusnik, whose unit ran the January exercise, said. Hottel explained that following this most recent event, teams focused on leadership and organization. At one point, someone on his team previously had been coached on what they needed to include such as specific indictors that might be valuable to their mission partners to understand. At this exercise, they included those indicators. In another instance, one team member who had never run a hunt mission struggled at first. Hottel stepped in and with just a little guidance, the leader became more disciplined and was able to find things much better in the last three days. Benefits of cyberspace in training Training in cyberspace has benefits that other domains don't offer. For one, forces don't need a dedicated battlespace such as the Army's National Training Center or the range used at Nellis Air Force Base for the Air Force's Red Flag. With cyber, a custom range can be built and forces from all across the world can come in and participate. The range used for the hunt exercises stays up weeks after the formal event so individuals or teams can try their hand, though they obviously won't be eligible for the Goblet of Cyber trophy. All of this could change with the Persistent Cyber Training Environment (PCTE). PCTE is a major program being run by the Army on behalf of Cyber Command and the joint force to provide a web-based cyber training environment where cyber warriors can remotely plug in around the world and conduct individual training, collective team training or even mission rehearsal — all of which does not exist on a large scale currently. Hottel said that his forces haven't been limited thus far without PCTE. Though, once the platform is online, they can upload the range they used for a competition and it can be accessed by anyone across the joint cyber mission force. Testing new concepts But in the meantime, smaller, unit level exercises like those run by the 567th allow forces to test concepts and learn from others. Unlike larger exercises that have requirements and stated objectives, smaller exercises can serve as a proving ground for staying sharp and pushing the envelope. This allows local units more control over what their personnel do but can also allow teams to test new concepts in a relatively risk-free environment. “Let's say that a national [cyber protection] team wants to test out ... whatever they're currently using because they feel like it would provide them an advantage so they want to test out something,” Hottel said. “We can throw that on the range as well and they can utilize an entirely defensive tool set. We're not trying to make people tool experts, we're trying to make them tradecraft, defensive hunters.” Hottel also said that personnel playing on the archived range can bring new ideas, which can then be tested during the next exercise. In some cases, they may come up with an idea on their own and bring it to the next exercise to see if it actually works. Ultimately, the event is designed to create better cyber warriors. “We're not trying to make people tool experts, we're trying to make them tradecraft, defensive hunters,” Hottel said. https://www.fifthdomain.com/dod/air-force/2020/02/21/the-largest-cyber-exercise-youve-never-heard-of/

  • Contract Awards by US Department of Defense - February 24, 2019

    February 25, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - February 24, 2019

    NAVY The Boeing Co., St. Louis, Missouri, is awarded a $93,000,000 cost-plus-fixed-fee, firm-fixed-price indefinite-delivery/indefinite-quantity contract. This contract incorporates the next three planned configurations of the operator flight program/system configuration set into the Royal Australian Air Force F/A-18 F and EA-18G aircraft training systems. Additionally, this contract procures spares, support equipment, technical manual updates and on-site training. Work will be performed in St. Louis, Missouri (85%) and Amberley, Australia (15%) and is expected to be completed in February 2025. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was not competitively procured pursuant to 10 U.S. Code 2304(c)(4). Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity (N61340-20-D-0003). Arwi JV LLC,* National City, California, is awarded an indefinite-delivery/indefinite-quantity contract with a maximum amount of $10,000,000 for roofing repair and maintenance at Naval Base Point Loma, California. Initial task order is awarded at $350,180 for re-roofing at Buildings 260 and 262. Included is the requirement to repair and maintain roof components that are incidental to the main roof structure, such as scupper drains, downspouts, gutters, as well as roof-mounted hardware that may require to be removed and reinstalled by reason of the primary roof repair requirements. Work for this task order is expected to be completed by June 2020. All work on this contract will be performed in San Diego, California. The term of the contract is not to exceed 60 months with an expected completion date of February 2025. Fiscal 2020 operations and maintenance, Navy (OMN) contract funds in the amount of $350,180 are obligated on this task order and will expire at the end of the current fiscal year. Future task orders will be primarily funded by OMN. This contract was competitively procured via the Navy Electronic Commerce Online website with four proposals received. The Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity (N62473-20-D-0041). Raytheon Co., Missile Systems, Tucson, Arizona, is awarded a $7,992,944 cost plus fixed-fee modification to previously awarded contract (N00024-17-C-5405) for design agent engineering and technical support services for the Phalanx Close-In Weapon System, SeaRAM, and Land-based Phalanx Weapon System. Only one responsible source and no other supplies or services will satisfy agency requirements. Phalanx Close-In Weapon System (CIWS) is a fast-reaction terminal defense against low and high-flying, high-speed maneuvering anti-ship missile threats that have penetrated all other defenses. CIWS is an integral element of the Fleet Defense In-Depth concept and the Ship Self-Defense Program. Operating either autonomously or integrated with a combat system, it is an automatic terminal defense weapon system designed to detect, track, engage and destroy anti-ship missile threats penetrating outer defense envelopes. Work will be performed in Tucson, Arizona, and is expected to be completed by January 2022. Fiscal 2020 weapon procurement (Navy) funding in the amount of $7,992,944 will be obligated at time of award and will not expire at the end of the current fiscal year. In accordance with 10 U.S. Code 2304(c)(1), this contract was not competitively procured. The Naval Sea Systems Command, Washington Navy Yard, District of Columbia, is the contracting activity. ARMY Griffon Aerospace Inc.,* Madison, Alabama, was awarded a $49,957,259 order-dependent contract to procure MQM-170 "Outlaw" Remotely Piloted Vehicle Targets, MQM-171 "Broadsword" Unmanned Aerial Systems - Targets, depot level repair and maintenance, storage of government furnished equipment, base operations services, field operations services, qualification training execution, and inventory and transfer support for targets management office and other Department of Defense customers. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 23, 2022. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-20-D-0006). L-J Inc.,* Cayce, South Carolina, was awarded a $13,456,000 firm-fixed-price contract for furnishing plant, equipment, labor, transportation, fuel, lubricant, supplies and materials, and performing all operations in connection with raising dikes and berms, installation of geotextile, and installation of new spillway systems in Clouter Creek, Berkeley County, South Carolina. Bids were solicited via the internet with four received. Work locations and funding will be determined with each order, with an estimated completion date of June 18, 2021. U.S. Army Corps of Engineers, Charleston, South Carolina, is the contracting activity (W912HP-20-C-0001). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2092565/source/GovDelivery/

  • Contract Awards by US Department of Defense - February 20, 2020

    February 24, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - February 20, 2020

    NAVY Lockheed Martin Rotary and Mission Systems, Baltimore, Maryland, was awarded a $233,036,890 firm-fixed-price undefinitized contract action for the procurement of Mk 41 Vertical Launching System vertical launcher module assemblies, modernization kits and spare components. This contract combines purchases for the Navy (74%) and the governments of Korea (18%), Finland (4%), and Germany (4%) under the Foreign Military Sales program. Work will be performed in Baltimore, Maryland (40%); Indianapolis, Indiana (36%); Farmingdale, New York (9%); Saginaw, Michigan (5%); Waverly, Iowa (2%); Thomaston, Connecticut (2%); Chaska, Minnesota (2%); St. Peters, Missouri (1%); Hampstead, Maryland (1%); Santa Rosa, California (1%), and Peachtree City, Georgia (1%), and is expected to be completed by March 2025. Fiscal 2018, 2019 and 2020 shipbuilding and conversion (Navy) and foreign military sales funding in the amount of $46,607,377 was obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with one offer received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-20-C-5310). (Awarded Feb. 14, 2020) Sikorsky Aircraft Corp. a Lockheed Martin Co., Stratford, Connecticut, is awarded an $11,967,528 modification (P00003) to a cost-plus-fixed-fee delivery order (N00019-19-F-2972) against a previously issued basic ordering agreement (N00019-19-G-0029). This modification provides non-recurring engineering to replace existing subsystems, such as the Data Transfer Unit, Defense Electronic Countermeasure System and ARC-210 radio, with the CH-53K production aircraft. Non-recurring engineering efforts include investigation, systems engineering support, risk analysis, integration development, weight impact, publication updates including maintenance, training, update tooling and qualification testing. Work will be performed in Cedar Rapids, Iowa (55.82%); Stratford, Connecticut (35.7%) and Fort Worth, Texas (8.48%), and is expected to be completed in August 2021. Fiscal 2018 aircraft procurement (Navy) funds in the amount of $11,967,528 will be obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Bath Iron Works, Bath Maine, is awarded an $8,462,959 fixed-price incentive (firm target) modification to previously awarded contract N00024-14-C-2305 to exercise an option for accomplishment of post-delivery availability work items for Guided Missile Destroyer 118. Work will be performed in Bath, Maine (93%), Brunswick, Maine (6%), and other locations below 1 % (collectively totaling less than 1%) and is expected to be completed by February 2021. Fiscal 2013 shipbuilding and conversion (Navy) and fiscal 2013 other procurement (Navy) funding in the amount of $8,462,959 will be obligated at time of award and funding in the amount of $1,962,124 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. AIR FORCE Dark Wolf Solutions LLC, Chantilly, Virginia, has been awarded a $75,000,000 blanket purchase agreement for cyber innovation services. This award was made from GSA Professional Services Schedule number: GS-00F-086GA. The contractor is a Phase III, Small Business Innovation and Research program participant. The location of performance is Hill Air Force Base, Utah. The work to be conducted includes software penetration testing and adversarial assessment. The work is expected to be complete by Oct. 19, 2020. Fiscal 2020 research development test and evaluation funds in the amount of $7,093,286 are being obligated at the time of award via task order FA7014-20-F-0041. Air Force District of Washington, Joint Base Andrews, Maryland, is the contracting activity (FA7014-20-F-0041). Williams Aerospace & Manufacturing (formerly Merex Aircraft Co.), a Kellstrom Defense company, has been awarded a $40,000,000 ceiling indefinite-delivery/indefinite-quantity contract for the acquisition of A-10 Speed Brake assemblies. This contract provides for upper and lower left speed brakes assembly and upper and lower right speed brakes assembly. Work will be performed in Camarillo, California, and is expected to be complete by February 2026. This award is the result of a competitive acquisition and three offers were received. Consolidated sustainment activity group working capital funds in the amount of $10,501,432 are being obligated at the time of award. The Air Force Sustainment Center, Hill Air Force Base, Utah, is the contracting activity (FA8212-20-D-0001). Chemring Energetic Devices Inc., Downers Grove, Illinois, has been awarded a $24,000,000 indefinite-delivery/indefinite-quantity contract for supply of various Cartridge Actuated Devices/Propellant Actuated Devices for various U.S. and Foreign Military Sales (FMS) aircraft. Work will be performed in Downers Grove, Illinois, and is expected to be completed by August 2027. The contract involves foreign military sales to Greece, Taiwan, Thailand, Switzerland, Uruguay, India, Saudi Arabia, Israel, United Arab Emirates, Belgium, Denmark, Indonesia, Iraq, Jordan, South Korea, Oman, Pakistan, Portugal, Romania, Singapore, Turkey, Poland, Bahrain, Tunisia, Egypt and The Netherlands. This award is the result of a sole-source acquisition. Air Force fiscal 2018 funding in the amount of $1,882,272; Air Force fiscal 2019 funding in the amount of $1,065,552; U.S. Navy fiscal year 2019 funding in the amount of $134,032; Foreign Military Sales funding in the amount of $2,539,705 are being obligated at the time of award under delivery order FA8213-20-F-2525. The Air Force Life Cycle Management Center, Hill Air Force Base, Utah, is the contracting activity (FA8213-20-D-0002). C. Martin Company Inc., North Las Vegas, Nevada, has been awarded a $7,462,086 option exercise modification (P00007) to previously awarded contract FA8601-18-D-0004. This modification provides for the exercise of an option for additional facility and equipment support under the basic contract. The location of performance is Wright-Patterson Air Force Base, Ohio. The work is expected to be completed by March 31, 2021. Fiscal 2020 research development test and evaluation funds are being obligated shortly after award on a task order. The total cumulative face value of the contract is $21,941,348. Wright-Patterson Air Force Base, Ohio, is the contracting activity. DEFENSE LOGISTICS AGENCY Stonewin LLC,* New York, New York, has been awarded a minimum $59,678,523 fixed-price with economic-price-adjustment contract for marine gas oil. This was a competitive acquisition with 41 responses received. This is a 56-month base contract with one six-month option period. Locations of performances are Alabama, California, Florida, Massachusetts, Texas and South Carolina, with an Oct. 31, 2024, performance completion date. Using customers are Army, Navy, Coast Guard and federal civilian agencies. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE608-20-D-0350). EMIT Corp., Houston, Texas, has been awarded a maximum $20,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for hospital equipment and accessories for the Defense Logistics Agency electronic catalog. This was a competitive acquisition with 104 responses received. This is a five-year contract with no option periods. Location of performance is Texas, with a Feb. 19, 2025, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-20-D-0030). ARMY K S Ware & Associates LLC, Nashville, Tennessee, was awarded a $12,500,000 firm-fixed-price contract for value engineering services. Bids were solicited via the internet with seven received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 19, 2025. U.S. Army Corps of Engineers, Fort Worth, Texas, is the contracting activity (W9126G-20-D-0012). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2089858/source/GovDelivery/

  • DOD budget pushing house cleaning pivot to leading-edge technologies: out with the old and in with the new

    February 21, 2020 | International, C4ISR, Security

    DOD budget pushing house cleaning pivot to leading-edge technologies: out with the old and in with the new

    Budget has $9.8 billion for cyber security and cyber warfare; $3.2 billion for hypersonics; and $800 million for artificial intelligence (AI) research. THE MIL & AERO COMMENTARY – The 2021 U.S. Department of Defense (DOD) budget proposal is out, and it looks like several years of consistent growth driven by the Trump Administration may be leveling off. A closer look, however, may indicate a pivot to new leading-edge technologies and away from legacy systems. DOD leaders in their fiscal 2021 budget request to Congress, which was released last month, are asking for $705.4 billion, which is down about 1 percent from this year's level of $712.6 billion. Before you conclude that the Pentagon budget has turned flat, however, take a look at where the money's going. First, the bad news: procurement. This is where big-ticket items like aircraft, combat vehicles, and ships get funding. The DOD's procurement budget request for 2021 is $136.9 billion, down nearly 7 percent from this year's level of $147.1 billion. Contained in the DOD budget for procurement, moreover, are aggressive cuts to legacy weapons systems. The U.S. Air Force, for example, will retire 24 RQ-4 Block 20 and Block 30 Global Hawk Battlefield Airborne Communications Node (BACN) unmanned aerial vehicles (UAVs) and Block 30 multi-intelligence aircraft UAVs next year. Related: Army researchers eye fuel cells to provide power for infantry wearable electronics on the leading edge The U.S. Navy, meanwhile, will retire four Ticonderoga-class missile cruisers. The U.S. Army plans to eliminate 13 programs involving munitions, fires, protection, sustainment, mobility, mission command, and cyber programs that no longer are priorities. Additional cuts are expected. Next year the Navy plans no additional purchases of P-8A Poseidon maritime patrol aircraft; the MQ-4 Triton long-range maritime patrol UAV; or the MQ-25 Stingray UAV. The counterweight to these procurement cuts, however, is in the DOD's budget for research, development, test, and evaluation (RDT&E). As procurement spending is going down, the research budget is headed in the other direction. The Pentagon is asking for $106.6 billion, which is up about 1 percent from this year's research budget of $106.6 billion. Revealing is money is going. The DOD next year plans to spend $9.8 billion for cyber security and cyber warfare -- up 81 percent from $5.4 billion this year; $3.2 billion for hypersonics; $1.5 billion for military microelectronics and 5G networking; and $800 million for artificial intelligence (AI) research. Related: The new era of high-power electromagnetic weapons The Pentagon hypersonics budget will pay for research and development initiatives to develop the Army Long-Range Hypersonic Weapon; Navy Conventional Prompt Strike (CPS); and Air Force Advanced Rapid Response Weapon (ARRW). Research money also would include $1.1 billion for the Navy's next-generation frigate; $4.4 billion for the future Columbia-class ballistic missile submarine; and $464 million for two Large Unmanned Surface Vessels. The U.S. Defense Advanced Research Projects Agency (DARPA) is asking for $3.6 billion in 2021, a 3 percent increase from the $3.5 billion the agency received this year. DARPA has asked for $322.7 million for electronics research in 2021 -- a 1.7 increase from the 317.2 million the agency received this year. For sensors research, DARPA is asking for $200.2 million in 2021 -- a 26 percent increase over the $158.9 million the agency received this year. Related: Military researchers host industry day briefings for artificial intelligence (AI) and machine learning So, in short, it sounds like out with the old, and in with the new at the Pentagon. Four Navy cruisers that are at least 30 years ago are heading for retirement. Large, slow, and vulnerable Global Hawk UAVs are to be taken out of service, and Army programs no longer relevant amid today's global threats will be taken off the board. At the same time, enabling technologies considered crucial for today's military needs are on the upswing: hypersonic munitions and aircraft, cyber security and cyber warfare, 5G networking, and artificial intelligence. Perhaps the DOD has been due for a house cleaning like this for a while. Getting rid of obsolescent weapons systems makes sense because they're past the point of diminishing returns. Pumping more money into technologies for tomorrow's battlefield makes sense, too. These kinds of realignments are painful, yet essential. https://www.militaryaerospace.com/defense-executive/article/14168362/dod-budget-leadingedge-technologies-research

  • Lockheed Martin and Guardtime Federal Join Forces to Thwart Software Cyber Threats

    February 21, 2020 | International, C4ISR, Security

    Lockheed Martin and Guardtime Federal Join Forces to Thwart Software Cyber Threats

    Forth Worth, Texas, February 20, 2020 /PRNewswire/ -- Lockheed Martin (NYSE: LMT) and Guardtime Federal are working together to mitigate cyber threats across Lockheed Martin Aeronautics' software supply chain by integrating immutable digital integrity into architecture supporting research, design, development, manufacturing, integration and sustainment of its advanced products and services. Through the long-term agreement, the team envisions integrating the aerospace community's first mathematically verifiable end-to-end integrity check from the external software supply chain, through the development process and all the way to verification on delivered military systems. This digital transformation initiative will mitigate cyber threats across the software supply chain using KSI® blockchain signatures. "Lockheed Martin is committed to continuous Agile development of secure software," said Ron Bessire, vice president, Lockheed Martin Aeronautics. "This collaboration with Guardtime Federal assures the highest level of digital security and enhances the integrity of our aircraft, further enabling pilots to achieve mission success in hostile cyber environments." Beyond the software development supply chain, the agreement also enables KSI® integration into the architecture of large-scale digitally directed manufacturing equipment to deter and detect any unauthorized residuals from third party routine maintenance actions. The desired end state is an advanced high integrity aerospace digital supply chain. "Whether the operation is land, sea, air, space, or cyber space, the control flow of digital data and processes is key to mission success," said David Hamilton, president of Guardtime Federal. "Our collaboration with Lockheed Martin is delivering a mathematically provable process for data integrity to the customer to assure that the software envisioned, developed, tested and certified is what makes it onto the platform every time." About Lockheed Martin Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 110,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. For more information, visit lockheedmartin.com. About Guardtime Federal Headquartered in Alexandria, Virginia, Guardtime Federal is a U.S. chartered business that delivers mathematically verifiable data integrity for defense and aerospace. Guardtime Federal integrates Guardtime KSI® industrial blockchain technology with U.S.-developed high-end tamper resistant hardware for data and process integrity with digital provenance for cross boundary, embedded, and private networked environments to protect design, development, manufacture, integration and sustainment of advanced technology systems, products and services. CONTACT: Alyssa Campbell, +1 817-655-8118; alyssa.k.campbell@lmco.com SOURCE Lockheed Martin Aeronautics View source version on PR NewsWire: https://news.lockheedmartin.com/2020-02-20-Lockheed-Martin-and-Guardtime-Federal-Join-Forces-to-Thwart-Software-Cyber-Threats

  • Opinion: Defense Budget’s Resilience Rests On Shaky Foundation

    February 21, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Opinion: Defense Budget’s Resilience Rests On Shaky Foundation

    Byron Callan Some of the main talking points on the fiscal 2021 defense budget request and the plan that accompanies it through 2025 are that it aligns resources with the National Defense Strategy and that this year's budget theme is about all-domain operations. The Pentagon called out priorities to sustain readiness and prepare for future challenges with investment in hypersonics, autonomous systems and artificial intelligence. Given a flat top line, the Defense Department had to make tough choices by making program cuts that have been well-documented and are well-covered by this publication. The outlines of structural changes in how the Pentagon is preparing for the future are indeed visible in the budget request and plan, but it is unrealistic to expect this budget to have completely framed out all that will be done. Increases in research, development, test and evaluation (RDT&E) spending both in absolute terms and compared to last year's plan for 2021-24 underscore shifts that are underway. It may take at least 2-3 more years to see how some of these RDT&E efforts translate into new programs and will inform how the U.S. will fight in future conflicts. Much as defense contractor management, analysts and planners will focus on the details in the defense budget, it is important also to factor in some of the assumptions that underpin the budget—the foundation upon which it rests. Here there are questions worth considering. The first is the real GDP forecast for 2021-29. The Office of Management and Budget (OMB) forecast depends on stable 3% annual real growth every year, which is well above consensus estimates. The U.S. is now in its longest economic expansion ever. Can this be extended into 2021 or beyond? Possibly. Has the U.S. somehow eliminated the risk of recession from a rapid increase in interest rates, another energy shock, a pandemic or a severe economic crisis in other parts of the world? Very likely not. Another questionable factor is the new budget and plan's interest-rate assumptions, as there was a big change from prior projections. The OMB and Congressional Budget Office (CBO) do not disclose how they expect the composition of federal debt by debt maturity to change over forecast periods. They usually provide projections only on three-month Treasury bill interest rates and on the 10-year Treasury note. The U.S. Treasury shows that as of Jan. 31, of the $17.2 trillion in federal debt held by the public, 14% was in Treasury bills with an average interest rate of 1.7%, and 58% was in notes with maturities of 2-10 years at an average rate of 2.1%. Net interest outlays are a mix of the interest the federal government pays to public holders of that debt and the interest it pays to itself on debt held in federal trust funds. One way to think about the debt burden and the interest expense associated with it is to take the net interest outlay projections and divide them by the total debt the OMB or CBO estimates. One of the changes the OMB made in its budget projections was to lower interest rate estimates. In recent years, these projections were too high compared to prevailing market levels, as the OMB and CBO both projected rates would return to “normal” levels. In the OMB's mid-session review from this past summer, the implied interest rate (net interest outlays divided by total debt) was 2.3% in 2019 and rose to 3.0% by 2022 and 3.3% by 2025. In the latest budget and plan, the implied rate is flat—at 2.1% in 2020, creeping up to 2.3% by 2025. This is another questionable factor that could weigh on the foundation of the defense spending plans. If rates do move to higher levels, then outlays will compete with other forms of federal spending. If rates fall further than projected, it may be due to a far weaker economy, which in turn weighs on federal deficits. A final questionable factor is the deficit projections themselves. The Trump administration again plans reductions in non-defense discretionary spending, which Congress has not supported in the last three budget requests. The share of non-defense discretionary outlays as a percent of total outlays drops to 12% in 2024 from 15% in 2019. For defense contractor management, planners, analysts and investors, foundations on which the budget plans are based imply that the structural and programmatic changes in the 2021 budget could be accelerated if deficits and interest rates are higher than the plan presumes. Like a high-rise building built to code in an earthquake zone, the Pentagon's structural and spending changes may make defense better able to withstand future macroeconomic tremors and shifts. https://aviationweek.com/defense-space/opinion-defense-budgets-resilience-rests-shaky-foundation

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