GOP Push Back. GOP lawmakers are making a concerted push to convince President Donald Trump not to impose cuts on the FY ’20 defense budget, as he has been reported to be demanding. Sen. James Inhofe (R-Okla.) said “there is no strategic rationale for any cut” to the defense budget on Dec. 6 at the National Defense University in his first public address since taking the gavel at the Senate Armed Services Committee.
…House GOP Letter. Rep. Mike Turner (R-Ohio), a HASC member who chairs the Tactical Air and Land Forces subcommittee, on Thursday released a letter co-signed by 70 House members that calls for Trump to uphold the $733 billion topline, stating “We must continue to adequately fund the military and allow for responsible growth to protect our national interests at home and abroad.” The letter will be sent to the White House by the end of next week, Turner said in a statement.
Trump Approves. President Donald Trump last Friday signed a two-week extension to a bill that will continue to fund the Department of Homeland Security and several other departments and agencies until Dec. 21, giving lawmakers a little more time to make a deal related to fiscal year 2019 spending for a border security wall. The fiscal year began on Oct. 1 and House appropriators want $5 billion for the wall, as does Trump, while the Senate recommends $1.6 billion. The president also signed a two-year Coast Guard authorization bill that gives the service multi-year contracting authorities for major acquisition programs and establishes a land-based unmanned aircraft system program for long-range monitoring of illegal narcotics shipping.
Japanese KC-46. The Air Force on Thursday awarded Boeing nearly $159 million for a firm-fixed-price contract modification for one additional KC-46A aerial refueling aircraft for Japan’s air force. Japan selected the KC-46 in December 2017 for its next-generation tanker aircraft and this past February the Air Force announced it awarded Boeing a $279 million contract to deliver the first aircraft to Tokyo. The new modification exercises an option for one additional aircraft being produced under the basic contract, according to the release. Work will be performed in Seattle and is expected to be completed by June 30, 2021. The full contract value is over $449 million.
New Navy Fifth Fleet Commander. Navy Vice Adm. James J. Malloy on Thursday was nominated and swiftly confirmed by the Senate to lead U.S. Naval Forces Central Command, the U.S. 5th Fleet and the Combined Maritime Forces in Bahrain. The appointment follows the sudden death of former commander Vice Adm. Scott Stearney Dec. 1. Malloy is currently serving as deputy chief of naval operations for Operations, Plans, and Strategy, N3/N5, Office of the Chief of Naval Operations, Pentagon, Washington, District of Columbia.
Open Skies Flight. The U.S. military and its allies on Thursday carried out an “Open Skies” mission using an OC-135 aircraft over Ukraine, with the timing intended to reaffirm U.S. commitment to Ukraine and its other partners, the Pentagon said in an emailed statement. “Russia’s unprovoked attack on Ukrainian naval vessels in the Black Sea near the Kerch Strait is a dangerous escalation in a pattern of increasingly provocative and threatening activity,” the statement said. “The United States seeks a better relationship with Russia, but this cannot happen while its unlawful and destabilizing actions continue in Ukraine and elsewhere.”
Russia FONOP. The U.S. Navy sailed the Arleigh Burke-class destroyer USS McCampbell in the area of the Peter the Great Bay on Wednesday in a Freedom of Navigation Operation (FONOP) to challenge Russia’s claims to the area and reinforce lawful uses of the sea. The U.S. does not recognize Russia’s claims on the waters, arguing it claims an area in excess of the 12 miles guaranteed under international law. Peter the Great Bay is the largest gulf in the Sea of Japan and is home to Russia’s Pacific Fleet and the city of Vladivostok. This was the first U.S. FONOP in the area since 1987. On Nov. 25 Russia seized three Ukrainian Navy ships in the Kerch Strait and kept Ukrainian vessels from reaching the Sea of Azov.
SASC Navy Hearing. The SASC Seapower and Readiness and Management Support Subcommittees on Dec. 12 will host an open hearing on Navy and Marine Corps readiness. It will feature the witness testimony of Navy Secretary Richard Spencer, Marine Corps Commandant Gen. Robert Neller, Vice Chief of Naval Operations Adm. William Moran, and John Pendleton, director of Defense Capabilities and Management at the Government Accountability Office.
HASC Hearings. The House Armed Services Committee will hold two open hearings the week of Dec. 10-14. On Dec. 11 the HASC Subcommittee on Emerging Threats and Capabilities will hold a hearing on the DoD’s artificial intelligence structure, investments and applications. It will include witness testimony from Deputy Undersecretary of Defense for Research and Engineering Lisa Porter, as well the Pentagon Chief Information Officer Dana Deasy. On Dec. 12, the HASC Subcommittee on Oversight and Investigations will hold a hearing titled “Security Clearance Processing Status Report,” which will include the testimony of Garry Reid, DoD director for Defense Intelligence; Dan Payne, DoD Defense Security Service director; and Charles Phalen, director of the National Background Investigations Bureau.
Share Repurchases. General Dynamics and Northrop Grumman last week said their respective boards have authorized additional stock repurchases. Northrop Grumman’s board authorized an additional $3 billion in stock buybacks, bringing the total repurchase authority to $4.1 billion. GD’s board approved up to 10 million more in share buybacks. At the end of November, the company has about 2.1 million shares available to repurchase under the prior authorization.
People. Northrop Grumman has elected Lucy Ryan as its new corporate vice president for communications effective Jan. 1, 2019. Ryan joined the company in September as vice president, enterprise communications after departing General Dynamics where she was the director of communications. She will report to Kathy Warden, who is Northrop Grumman’s new president and CEO. Science Applications International Corp. has appointed two new members to its board once the company closes its acquisition of Engility. David Kerko and Katharina McFarland are both current members of Engility’s board.
Pending TSA Award. Transportation Security Administration Administrator David Pekoske said the agency later this year or early in 2019 will award a contract for its first large buy of computed tomography-based baggage scanners for use at airport checkpoints. Four companies—Analogic, Integrated Defense & Security Solutions, and L3 Technologies, are competing for the award of up to 169 CT machines with FY ’18 and prior year funds. Industry officials expect anywhere from one to four awards.
…Wholesale Replacement. Pekoske, speaking at the annual Association of American Airport Executives Aviation Security Summit on Dec. 4, said that TSA plans to deploy the CT systems wherever they can fit. There are currently about 2,400 airport security screening lanes in the U.S. and he said it’s possible each one gets a CT system, which will replace Advanced Technology X-Ray scanners currently in use. TSA requested funding for 200 CT systems in the FY ’19 budget, which is awaiting congressional approval, and Pekoske said the FY ’20 request will be larger. The CT systems will increase security effectiveness and allow travelers to leave their personal electronics in their carry-on bags. In two to three years the hope is that liquids will also be able to remain inside the carry-ons, he said.
EPF-14. The Naval Sea Systems Command (NAVSEA) awarded Austal USA a $40 million undefinitized contract action to procure long lead-time material and production engineering for the Spearhead-class Expeditionary Fast Transport (EPF) 14 on Dec. 3. The EPFs can travel up to 35 knots, have a range of 1,200 nautical miles, and can deliver up to 600 short tons of cargo to shallow-draft and damaged ports within a theater. Austal said long lead-time material includes diesel engines, water jets and reduction gears. Work is expected to be finished by July 2022. Austal said it expects this award as well as an earlier long lead time award for EPF-13 to lead to full vessel contracts later this fiscal year. If awarded, the full vessel contracts will continue EPF construction through the end of 2022.
Sub Base Support. The U.S. Navy awarded General Dynamics Electric Boat (GD EB) a $46 million modification on Dec. 4 for non-nuclear repair services needed to support submarine maintenance. Services under this contract cover non-nuclear repair services required to support submarine overhauls, maintenance, repair and modernization upgrades, ship alterations, and corrective and preventative maintenance. Work will occur in New London, Conn. and is expected to be finished by Dec. 2019. GD said the award allows it to continue operating the New England Maintenance Manpower Initiative (NEMMI) at the base. NEMMI helps transition non-submarine qualified military billets at the Naval Submarine Support Facility to GD EB shipyard employees. The contract has a potential maximum value of $240 million over five years.
USV Torpedoes. Israel’s Elbit Systems is teaming up with Italy’s Leonardo to develop and demonstrate the capability of the Elbit Seagull Unmanned Surface Vessel (USV) to launch Leonardo lightweight and mini torpedoes. The companies announced the partnership at the Exponaval conference in Valparaiso, Chile, this week. The companies said their solution will be based on the architecture used for airborne torpedo launching systems. The Israeli navy currently uses the Seagull USV and Elbit noted it performed well at the Belgian Defense Ministry 017 North Sea trials and is regularly participating in international naval mine countermeasures and anti-submarine exercises. Leonardo noted more than 30 countries use its torpedoes.
PSC on DOD IT. The Professional Services Council announced its support on December 4 of the Pentagon’s proposed rule change to prohibit “Lowest Price Technically Acceptable” considerations for IT procurement contracts. The DoD’s rule was announced in a Federal Register Notice on December 3. The proposed change follows language included in recent defense authorization bills to ensure the department doesn’t prioritize low cost when it comes to purchasing equipment that requires high cyber security scrutiny. “This is the latest step in PSC’s multi-year crusade to ensure proper use of LPTA contracts…We are encouraged to see DoD initiate this long-awaited action, and we look forward to providing comments to them. Even more importantly, we look forward to the rule being followed and for DoD to focus on value and results as well as cost,” PSC President David Berteau said in a statement.
NDISAC Director. The National Defense Information Sharing and Analysis Center (NDISAC) on December 3 named Steve Shirley, a former top Pentagon cyber crime official, as its next executive director. Shirley succeeds Carlos Kizzee who had been serving as the organization’s interim executive director. “Steve’s extensive DoD background in support of [Defense Industrial Base] cyber security efforts will ensure a solid NDISAC-DIB alignment and will enable the NDISAC to most effectively align with DoD and the DIB Sector Coordinating Council to best serve our members and the DIB,” the organization wrote in a statement. He previously served as executive director of DoD’s Defense Cyber Crime Center and was previously the vice commander of the Air Force’s Office of Special Investigations. Shirley is tasked with organizing NDISAC’s strategic initiatives and developing information sharing mechanisms for the DIB.