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Report: Army’s new modernization command risks cost overruns and delays
By: Meghann Myers
When the Army first announced its intention to stand up a new four-star Futures Command, senior leadership said the days of years-long, expensive modernization programs and murky requirements were over.
While failing early and often can prevent some of those issues before an idea becomes a program of record, there are still some risks that, by trying to be a more nimble and innovative enterprise, AFC could still run into cost increases and drawn-out timelines if it jumps too hard on emerging technologies, according to a Government Accountability Office report released Wednesday.
“There are a variety of ways to fail when it comes to developing these technologies,” Jon Ludwigson, the GAO's acting director of contracting and national security acquisitions, told Army Times in a Wednesday phone interview. “I guess the way that I would look at it is, you can make sure that you have it right, or hope that you'll get it right.”
The study was mandated by the 2018 National Defense Authorization Act, to take the temperature of Futures Command as it stood up. The Army officially activated the command in August, headquartered at the University of Texas in Austin.
In general, the report found, the Army has applied best practices that GAO has previously touted, including close collaboration with senior leadership. On the other hand, the report found, there were a couple things that could be improved.
AFC's plans to develop weapons systems with emerging technology could come back to hurt it, the report said.
“GAO has raised concerns about this type of practice for almost two decades for other Army acquisitions, because proceeding into weapon systems development at earlier stages of technology maturity raises the risk that the resulting systems could experience cost increases, delivery delays, or failure to deliver desired capabilities,” according to the report.
The GAO, Lugwigson said, is wary of creating programs around emerging technologies, before having a chance to test them in an operational environment.
“As the Army identifies the capability, there are technologies that are used to achieve that capability,” he said. “What GAO has found is, there's an advantage to maturing those technologies before you begin what's called a program of record.”
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Huntington Ingalls Industries Awarded $954 Million Intelligence, Surveillance and Reconnaissance Contract by U.S. GSA FEDSIM
Newport News, Va., January 23, 2020 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries (NYSE: HII) announced today that it has been awarded a General Services Administration One Acquisition Solution for Integrated Services (OASIS) task order to provide Persistent Multi-Role Operations (PMRO) support to the U.S. Air Force-Europe (USAFE) by the Federal Systems Integration and Management Center (FEDSIM). This task order will provide Contractor Owned-Contractor Operated (COCO) manned and unmanned airborne intelligence, surveillance and reconnaissance (ISR) in support of Air Force requirements in the European and African theaters of operation. The task order has a base period of one year with four option years and a potential value of $954 million. “Critical readiness of our defense intelligence enterprise demands unique expertise and advanced technology solutions,” said Garry Schwartz, president of Technical Solutions' Mission Driven Innovative Solutions group. “Over the last several years, HII has continued to expand its ISR support to the U.S. Air Force and other components of the Department of Defense. We are looking forward to continuing to advance the implementation of innovative ISR solutions for USAFE and across the DOD.” The Air Force directs global integrated ISR operations from forward-deployed locations worldwide, including locations throughout the six geographic combatant commands. Air Force ISR operations are conducted in multiple domains and across all phases of operations and environments. The timely integration and delivery of ISR information provides joint, defense, national, and coalition partners with actionable intelligence for the commander and warfighter. The objective of this task is to provide persistent, multi-role and cross-domain ISR capabilities that increase indications and warnings, enhance the U.S. security defense posture, enable the freedom of movement, increase partnership capacity and interoperability, and foster global security and stability throughout the European and African areas of responsibility. This is a continuation and expansion of work currently performed by HII, whose purpose is to deliver timely, accurate and relevant information to operational and strategic decision makers. This effort will provide PMRO for multiple DOD components, including Air Forces in Europe and Africa as well as other strategic and operational partners. About Huntington Ingalls Industries Huntington Ingalls Industries is America's largest military shipbuilding company and a provider of professional services to partners in government and industry. For more than a century, HII's Newport News and Ingalls shipbuilding divisions in Virginia and Mississippi have built more ships in more ship classes than any other U.S. naval shipbuilder. HII's Technical Solutions division provides a wide range of professional services through its Fleet Support, Mission Driven Innovative Solutions, Nuclear & Environmental, and Oil & Gas groups. Headquartered in Newport News, Virginia, HII employs more than 42,000 people operating both domestically and internationally. For more information, visit: HII on the web: www.huntingtoningalls.com HII on Facebook: www.facebook.com/HuntingtonIngallsIndustries HII on Twitter: twitter.com/hiindustries Statements in this release, as well as other statements we may make from time to time, other than statements of historical fact, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed in these statements. Factors that may cause such differences include: changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); our ability to estimate our future contract costs and perform our contracts effectively; changes in procurement processes and government regulations and our ability to comply with such requirements; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; natural and environmental disasters and political instability; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures, and strategic acquisitions; adverse economic conditions in the United States and globally; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; and other risk factors discussed in our filings with the U.S. Securities and Exchange Commission. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make. CONTACT INFORMATION Beci Brenton HII Corporate Director of Public Affairs (202) 264-7143 Beci.Brenton@hii-co.com View source version on Huntington Ingalls Industries: https://newsroom.huntingtoningalls.com/releases/huntington-ingalls-industries-awarded-954-million-intelligence-surveillance-and-reconnaissance-contract-by-u-s-gsa-fedsim