21 février 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
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
20 mars 2023 | International, Autre défense
The United States is authorizing another $350 million in military aid for Ukraine, U.S. Secretary of State Antony Blinken said on Monday, as Kyiv builds up its arsenal for an anticipated counter-offensive against Russian forces.
8 mars 2018 | International, Aérospatial, C4ISR
CS est retenu par la Direction générale de l'armement (DGA) pour la réalisation, pour l'ensemble des forces armées, des premiers systèmes de détection, d'identification et de neutralisation de drones illicites. Le Plessis Robinson, le 5 mars 2018 – Le ministère des Armées a notifié le marché MILAD (Moyens Mobiles de Lutte Anti-Drones) au groupe CS à l'issue d'une compétition. Ce système aux performances confidentielles est destiné à améliorer la protection de sites sensibles et a pour objectif d'équiper, dans un délai très court, les forces armées de systèmes mobiles assurant la détection, l'identification et la neutralisation des drones. Ces moyens ont vocation à équiper les forces terrestres, aériennes et navales en métropole ou sur les thé'tres d'opérations. Dans ce cadre, CS a été retenu sur la base de sa performance économique, de son expérience et des performances de sa solution. « CS est honoré d'avoir été retenu pour ce projet d'envergure. C'est la consécration des efforts d'innovation continus du groupe dans ce domaine depuis deux ans, avec l'industrialisation de notre système BOREADES déjà opérationnel pour la sécurité d'événements nationaux. Nous avons l'ambition d'adapter en permanence notre système à l'évolution de la menace pour le valoriser tant en France qu'à l'international», déclare Khaled Draz, Directeur Général de CS Systèmes d'Information. A propos de CS CS est un acteur majeur de la conception, de l'intégration et de l'exploitation de systèmes critiques. CS est coté sur le marché Euronext Paris - Compartiment C - (Actions : Euroclear 7896 / ISIN FR 0007317813). Pour en savoir plus : www.c-s.fr Relations presse Barbara GOARANT Tél. : +33 (0)1 41 28 46 94 https://www.c-s.fr/CS-remporte-le-premier-marche-majeur-de-lutte-anti-drone-en-France_a840.html
5 juillet 2018 | International, C4ISR
Lily Hay Newman EVERY DAY, COMPANIES like Google and Apple wage a constant battle to keep malicious apps out of their marketplaces and off people's phones. And while they do catch a lot of malware before it does any damage, there are always a few nasty infiltrators that manage to sneak by and end up getting downloaded by thousands of consumers. No one wants these mistakes to happen, but when you're a crucial app store for the Department of Defense, these mistakes can't happen. That was the problem facing the National Geospatial-Intelligence Agency as it set about creating a flexible yet ultrasecure app store in 2012. NGA is a combat support organization that primarily assesses and distributes geospatial intelligence. The agency wanted to provide sensitive and mission-critical apps to groups across the DOD through a platform that had the security and resilience of a government defense product, while also offering a streamlined, up-to-date user experience similar to ubiquitous commercial app stores. "We recognized that we did not know everything when it came to apps, and we wanted to be using the innovation that was happening in the commercial sector," says Joedy Saffel, division chief and source director of NGA who has worked on the GEOINT App Store from the beginning. "But how do we do that in a safe, secure manner? How do we do that from a contractual perspective? And how do we do that in a way that nontraditional vendors will trust doing business with the government? It was a great challenge." The key, Saffel says, is getting developers to agree to hand over the source code of their apps for in-depth analysis and review. Whether an app is a simple time/speed/distance calculator for a pilot or a hyper-specialized classified tool, sharing source code is a big risk for developers, because it means trusting third parties with the core intellectual property they have built their businesses on. But NGA soon realized that full access was the only way its project could work. So NGA's GEOINT App Store runs its security protections and screening processes in a way a commercial platform never could. Need To Know You can browse through the GEOINT App Store yourself today and see many of the mapping, aeronautical, weather-forecasting, location-sharing, and travel-alert services that it hosts for Android, iOS, desktop, and web. But that's just the public unclassified section—one crucial aspect of designing the platform was building segmentation controls so DOD employees with different levels of clearance, or simply different needs, could have gated access to different apps. "We built the App Store to be a completely unclassified environment that's open to the public," says Ben Foster, a technical director at NGA who is the product manager for the app store. "But it also has identity management that uses a federated approach to authentication. It's even flexible enough to integrate with other identity-management platforms across DOD. If a user is a helicopter pilot, they might see and get different apps then someone who is a tactical operator in the Army." This system also works with the platform's pricing variations: Some apps are free to everyone, some downloads come with a fee that needs to be taken out of a particular department's budget, and some apps are licensed by NGA or another agency. The most radical part of the GEOINT App Store from a government perspective is the speed with which NGA can process apps and get them live in the store. In general, government acquisition processes take many months or years, a clear problem when it comes to constantly evolving software. So NGA worked with its chief information officer, IT Directorate, legal team, international affairs division, and contracting office to establish a streamlined app-vetting process that would be acceptable under federal acquisition regulations. The agency also contracted with a private firm called Engility to directly manage the outreach, acquisition, and development environment for customizing prospective apps to NGA's requirements. The process, known as the Innovative GEOINT Application Provider Program, or IGAPP, minimizes bureaucratic hurdles and guides developers who want to submit an app through a pipeline that vets, modifies, and generally grooms apps for NGA's store. "What we focused on early on was providing tools so developers can bring their app and do a lot of the pre-testing and development with Engility," NGA's Saffel says. "We're able to be flexible with that because it's being done outside of the government footprint in a brokered environment. And then NGA has a governance board that meets every week, and the whole process has matured enough that by the time an app comes to NGA, we can review it and get that application into the app store and exposed within two weeks' time." Though the process might be even faster if NGA only did the minimum vetting required, Saffel says that the GEOINT team worked to find a balance where the apps go live quickly, but there's still time for the automated code analyses and human audits that commercial app stores can't do. Check It Out After a developer submits their app, Engility does extensive source code analysis and vulnerability scanning and produces an initial findings report. John Holcomb, the IGAPP program manager from Engility, notes that an initial vulnerability report can have as many as 1,000 items on it that a developer needs to address. "It's a little intimidating at first," Holcomb says. "But we walk them through it, and they go back and modify their code—it's their code, we don't modify it for them. We might go through four runs of that on a brand-new app, but by the time we're done, they will have remediated their code down to the level that the government needs. There are still going to be bureaucratic hurdles, but it's our job to break through those." In addition to digging deep into source code, IGAPP also tests how apps function in practice, to make sure that there aren't benign-looking aspects of the code that actually underlie a shady function. "We take the compiled application and we watch what it does," Holcomb says. "Who does it phone home to? Is it sending private information unencrypted?" After an app gets approved for inclusion in the GEOINT App Store, developers continue to work with IGAPP on developing and vetting software updates so that patches and improvements can be pushed out quickly. The brokered vetting process means that the government never holds developers' source code directly. The inspection is always mediated by Engility, which signs nondisclosure agreements with developers and isn't a software maker itself. Holcomb says that the company carefully guards app data while storing it, and once a project is done, Engility doesn't just do a soft data deletion; it hard-purges the information from its cloud servers within 30 days. NGA's Saffel and Holcomb both note that developers were apprehensive about the unusual workflow at first, but over the years the app store has gained credibility. Developers say they benefit from the IGAPP process both by securing lucrative government contracts and by integrating the improvements from the IGAPP development into their commercial products. The code audits and security vetting IGAPP offers are expensive, so developers generally don't do such extensive assessment on their own. "Everyone's dream is to sell to the government, but it normally takes years of effort to get to a position where you can. In our case, I was able to sell to the government in less than a month," says Bill DeWeese, CEO of the firm Aviation Mobile Apps, which has had six apps accepted into the GEOINT App Store. "You do feel a little anxiety about sharing source code, you worry about your IP leaking and someone getting ahold of it. But I haven't had any issues, and the benefit is the increased quality of your products at no cost—you get the analysis for free and you can put it in your commercial offerings." NGA's Saffel says the governance board that evaluates the apps at the end of the process is careful to stay vigilant so nothing goes into the store by accident. The board will still push back on apps or turn them away when warranted, but Saffel says the process has matured such that most of what the board sees these days is ready or very near ready to go live. And IGAPP prioritizes its patching process and infrastructure, to make it easy for developers to push bug fixes and improvements throughout the life of an app. All of this means a consumer-grade turnaround time for critical Department of Defense tools without the consumer-grade security concerns. "NGA is kind of a unique combat-support agency," Saffel says. "With the GEOINT App Store we chose to go into a very risky new frontier for DOD and the government in general, but I think we've demonstrated that we can do things differently and still be secure and still control access. We're supporting a lot of different mission sets, and I expect that the app store will keep growing." https://www.wired.com/story/dod-app-store-does-this-one-crucial-thing-to-stay-secure/