Defense Watch: Cyber EO, Redwire Deal, Northrop Stock Buyback

Another Cyber EO. The White House is crafting another executive order dealing with cybersecurity, which will “crisp up” and “bring additional clarity” to the roles and responsibilities of the various federal players involved in cybersecurity policies and operations, Chris Inglis, the U.S. National Cyber Director, told a House panel last week. Inglis said he is “confident” that in the weeks and months ahead, this EO will be delivered. Rep. James Langevin (D-R.I.), a member of the House Homeland Security Committee, asked Inglis about the EO, adding that the cyber director had recently said that it would also address the processes his office will follow and establish annual cyber priorities.

New Redwire Deal.

Redwire Corp. last week said it has acquired Techshot, Inc., in a deal that adds to its current capabilities in in-space manufacturing with a business that provides biotechnology for research and manufacturing in space. Techshot, which is based in Indiana, has four payloads operating on the International Space Station. The company’s key products include a system for manufacturing human tissue in microgravity, a platform with centrifuges for in-space biological and physical science research, a processor for biological research and small-scale manufacturing in space, and an in-orbit X-ray machine used mainly to research new treatments for osteoporosis and muscle wasting diseases. Techshot is also developing a payload for 3D printing of metal and electronic components, and devices for manufacturing pharmaceuticals and large quantities of human cells. Terms of the deal were not disclosed.

Northrop Share Buyback. Northrop Grumman last week said it is accelerating the repurchase of $500 million of its common stock, which is in addition to previously planned repurchases, raising the overall buyback target to more than $3.5 billion. The accelerated repurchases are expected to be completed in the first quarter of 2022.

CISA Advisory Panel. The Department of Homeland Security has established a new advisory committee that will report to the Cybersecurity and Infrastructure Security Agency. The CISA Cybersecurity Advisory Committee was established under the fiscal year 2021 National Defense Authorization Act and its primary purpose “will be to develop, at the request of the CISA Director, recommendations on matters related to the development, refinement, and implementation of policies, programs, planning, and training pertaining to the cybersecurity mission of the Agency,” DHS said in a Nov. 5 notice in the Federal Register. CISA decline to comment on the current status and membership of the committee. The agency’s website doesn’t list any members or planned meetings.

VA CIO Nominee. The White House on Nov. 3 announced Kurt DelBene, a former executive vice president at Microsoft, has been nominated to serve as the Department of Veteran Affairs’ chief information officer. DelBene retired from Microsoft in September, where he most recently led the company’s corporate strategy for core services engineering and operations. From December 2013 to July 2014, DelBene helped the Obama administration lead improvement work on Healthcare.gov, the enrollment site for the Affordable Care Act. “DelBene helped assess and implement the path through the first Open Enrollment period, including troubleshooting issues encountered along the way, and setting the project up for long-term success,” the White House wrote in the nomination announcement.

Milley on CR. Army Gen. Mark Milley, chairman of the Joint Chiefs of Staff, said this week the routine nature of continuing resolutions (CR) to start the fiscal year will lead to more inefficient and expensive operations at the Pentagon. “As a matter of routine, CRs are a very inefficient way of managing something as large as the NDAA and the budget for the national defense. What ends up happening is instead of having a 12-month budget, you end up with an eight-month or nine-month or 10-month [budget] and you lose predictability with industry. If industry has to deal with things on a year-to-year basis, CR-to-CR basis, they jack up the price of an individual unit cost sort of thing, so an item is much more expensive,” Milley said during a Nov. 3 discussion at the Aspen Security Forum in Washington, D.C. The federal government is currently operating under a CR that is set to expire on Dec. 3.

…Reed On CR. Sen. Jack Reed (D-R.I.), chair of the Senate Armed Services Committee, also cited the negative impact of CRs and said having the Pentagon operate under another one into the new year would be a “serious blow” to the department. “A CR really undercuts the Department of Defense. It paralyzes many things they can do. It’s hard for them to enter into contracts. It just basically puts them on hold for a while. Our adversaries or our competitors look at this and say that’s dysfunctional,” Reed said in a separate discussion at the Aspen Security Forum. “So we’ve got to get it done. And it’s a matter of getting our colleagues on both sides of the aisle to sit down and hammer it out. Dec. 3 is the tentative deadline, I believe, and so we’ve got to get it done by then.”

T-AO 206. The Navy plans to christen the John Lewis-class replenishment oiler, the future USNS Harvey Milk (T-AO 206) during a ceremony in San Diego on Nov. 6. The principal ceremonial address will be delivered by Stewart Milk, the namesake’s nephew and co-founder of the Harvey Milk Foundation. Other remarks will be given by Secretary of the Navy Carlos Del Toro, Deputy Chief of Naval Operations for Warfighting Development Vice Adm. Jeffrey Hughes, and Commander of Military Sealift Command Rear Adm. Michael Wettlaufer. “Tomorrow we christen the future USNS Harvey Milk. Leaders like Harvey Milk taught us that diversity of backgrounds and experiences help contribute to the strength and resolve of our nation. There is no doubt that the future Sailors aboard this ship will be inspired by Milk’s life and legacy,” Del Toro said in a statement on Nov. 5.

SSN-752. The Los Angeles-class USS Pasadena (SSN-752) returned to the fleet on Oct. 31 after the Norfolk Naval Shipyard (NNSY) completed its Drydocking Selected Restricted Availability (DSRA). The submarine spent over a year at NNSY to replace, repair and overhaul components in the boat. This was the shipyard’s first DSRA it conducted in a decade. The Navy said SSN-752 served as the shipyard’s pilot project leveraging the Naval Sustainment System-Shipyards (NSS-SY) program, which uses industry and government best practices in shipyard processes to direct fast and visible improvements in ship maintenance. The Navy admitted the Pasadena did not meet its originally completion date, but these kind of improvements “helped deliver the boat back to the Fleet and are being implemented on other NNSY overhauls, to include USS Toledo (SSN-769) and USS Dwight D. Eisenhower (CVN-69).” 

HII Ships Status. Huntington Ingalls Industries (HII) disclosed the status of several ships in its quarterly earnings call on Nov. 4. The company said the Arleigh Burke-class destroyers the future Lenah Sutcliffe Higbee (DDG-123) and the first Flight III  destroyer Jack H. Lucas (DDG-125) are on track to finish sea trials next year as planned. The future USS Fort Lauderdale (LPD-28) San Antonio-class amphibious transport dock ship is on track to finish sea trials in the fourth quarter of this year and deliver to the Navy in the first quarter of next year.

…Carriers and Subs. The company noted the future Ford-class aircraft carrier the John F. Kennedy (CVN-79) is about 84 percent complete and the USS George Washington (CVN-73) aircraft carrier’s refueling and complex overhaul is about 92 percent complete. On submarines, the future Virginia-class USS Montana (SSN-794) is on track for delivery to the Navy later this year, the future USS New Jersey (SSN-796) float off milestone was moved to early next year “to ensure that we achieve the optimum build sequence” through delivery planned in 2022,” Chris Kastner, HII executive vice president and Chief Operating Officer, said during the earnings call. He also said the repair, maintenance and upgrade work on the Los Angeles-class attack submarine USS Helena (SSN-725) is on track for the vessel to be redelivered to the Navy later this year. 

…DDG Perspective. HII CEO Mike Petters also endorsed plans to continue producing Flight III Arleigh Burke-class destroyers until the design of the Navy’s next-generation large surface combatant, DDG(X), is mature. “It’s really hard to pin down the development, path, and timeline for a new program like this, this early in the process…and our general view is that you don’t really want to stop production of a line until you’re ready to move to a mature design product going forward,” Petters said. He added “we certainly will advocate and believe that the best prudent course ahead will be to continue to build Flight IIIs until that design is mature. We’re ready to go into production on that.” Petters said he thinks it would be a mistake if there is any curtailment in the DDG-51 program that anticipates the DDG(X) maturation timeline. “Our industry is full of people who have seen gaps in production become tremendous problems for restarts of production. So, let’s keep the production line moving”  and when the design is ready to transition the production line, they will do so,” Petters said.

First Two C-37Bs. The U.S. Air Force has received its first C-37B plane to transport the vice president and cabinet secretaries. The Air Force spent $159 million for the first two C-37Bs–two Gulfstream G550-derived airframes and L3Harris communications upgrades. The aircraft are to provide secure and non-secure in-flight voice and data and are to be capable of high-altitude, intercontinental flight, with cruise operations ranging from 41,000 to 51,000 feet. The first C-37B’s tail number is 1941 in honor of the year the Tuskegee Airmen were founded.  In addition to the two C-37Bs, the Air Force has 14 C-37As. Other features of the C-37B include an updated defensive system and a new, onboard senior leader communications system.

97 Percent. The Department of the Air Force said that nearly 97 percent of active duty members of the Air Force and Space Force have received at least one dose of a COVID-19 vaccine, and 95.9 percent are fully vaccinated. “As members of the nation’s Armed Forces, our Airmen and Guardians must be able to respond to situations around the globe and being vaccinated is one of the ways the Department of the Air Force bolsters our readiness and safely meets the readiness requirements that our national security depends on,” per Ann Stefanek, an Air Force spokeswoman. “A vaccinated force is a protected force, better able to deploy and to defend our interests anywhere at any time. Receiving the COVID-19 vaccine is a necessary requirement to keep our people safe and healthy. This is a readiness issue.” Nov. 2 was the deadline for active duty members of the Air Force and Space Force to receive a COVID-19 vaccine. About 90.5 percent of the total force, including Guard and Reserve units, is fully vaccinated, pending a Dec. 2 deadline for the Guard and Reserve components. The Department of the Air Force has recorded 73,131 cases of COVID-19, 51 hospitalizations, and 139 deaths.

* These numbers include all of the cases that were reported since our last update on Oct. 26.

*Civilian statistics are unaccounted for.

**These numbers are subject to change.

Unvaccinated: All those who have verbally refused, have not started the vaccination process or are erroneously coded. Does not include those who have approved exemptions.

Medical: Medical exemptions are determined individually by the member’s medical provider.

Administrative: Administrative exemptions are determined individually. For example, if a member obtained a commander-approved submission for separation or retirement by Nov. 1, they are administratively exempt.

Religious Accommodation: Religious accommodations are a subset of administrative exemptions and are determined by the MAJCOM/FLDCOM commanders. The DAF has 30 business days (active component in CONUS) to process requests. Appeals are determined by the DAF’s Surgeon General with inputs from the chaplain and staff judge advocate. Individuals do not have to get immunized as long as their request is in the process of being decided.

Personnel Numbers:

• Approximately 326,000 Active Component (U.S. Air Force and U.S. Space Force)
• Approximately 501,000 Total Force (Active Duty, Air National Guard and Air Force Reserve)