Page 11 – Defense Daily

U.S. OKs Potential $2 Billion F/A-18F, EA-18G Support Deal With Australia

The State Department has approved a potential $2 billion deal with Australia covering sustainment support and equipment for its fleet of F/A-18F Super Hornet and EA-18G Growler aircraft.

The Defense Security Cooperation Agency notified Congress on Monday of the new foreign military sale.

A Royal Australian Air Force (RAAF) F/A-18F Super Hornet from No. 1 Squadron taxis back to an ordnance loading area after a sortie during Talisman Sabre 23, at RAAF Base Tindal, Northern Territory, Australia, July 27, 2023. (U.S. Air Force photo by 1st Lt. Robert H. Dabbs)

The deal covers a range of equipment for the Australia’s Boeing [BA] F/A-18Fs and the specialized EA-18G electronic attack aircraft, to include Global Lighting joint tactical terminal-transceivers, 40 advanced electronic warfare systems and 24 Next Generation Electronic Attack Units.

Australia would also receive encryption devices, AN/ALE-47 electronic warfare countermeasures systems, Joint Mission Planning System software, aircraft spares and repair parts, software and hardware updates and development, system configuration upgrades, avionics software support, aircraft armament equipment, engine component improvements, training aids, flight test services and logistics and program support.

“This proposed sale will support the foreign policy and national security objectives of the United States. Australia is one of our most important allies in the Western Pacific. The strategic location of this political and economic power contributes significantly to ensuring peace and economic stability in the Western Pacific,” the DSCA said in a statement. “It will also improve Australia’s capability to support coalition operations and contribute to mutual security goals in the region.”

The State Department on Monday also said it has approved a potential $211 million with Italy for RTX [RTX]-built Advanced Medium-Range Air-to-Air Missiles (AMRAAM).

The new FMS case with Italy includes 30 AIM-120D-3 AMRAAMs, 40 AIM-120C-8 AMRAAMs and two AIM-120C-7 AMRAAM guidance sections as well as spare and repair parts, weapon system support and software and personnel training and training equipment.

“The proposed sale will improve Italy’s capability to meet current and future threats by ensuring Italy has modern, capable air-to-air munitions. It will also advance United States interoperability with NATO and the Italian Armed Forces,” the DSCA said in a statement.

Honeywell To Provide Auxiliary Power Unit, Cooling Solution For Army’s FLRAA

Honeywell [HON] said Monday that Bell [TXT] has selected the company to provide the auxiliary power unit (APU) and cooling solution for the Army’s Future Long Range Assault Aircraft (FLRAA).

As a subcontractor on the FLRAA program, Honeywell said it will supply its 36-150 auxiliary power unit (APU) and Honeywell Attune cooling capability for the future tiltrotor aircraft.

The V-280 Valor. Bell photo.

“FLRAA will deliver new long-range high speed transport capabilities to the U.S. Army helping to ensure force readiness against emerging threats,” Rich DeGraff, Honeywell Aerospace Technologies’ president of control systems, said in a statement. “We are confident that our proven 36-150 APU and Honeywell Attune system will exceed the expectations of the Army throughout the FLRAA contract and subsequent active-duty service that will last beyond 2050. Honeywell looks forward to continuing to serve the Army on their future vertical lift fleet.”

Bell’s V-280 Valor tiltrotor aircraft was named the winner of the FLRAA competition in December 2022, beating out a Sikorsky [LMT] and Boeing [BA] team’s Defiant X coaxial rigid rotor helicopter offering for the program to find a platform that will eventually replace a sizeable portion of the Black Hawk fleet (Defense Daily, Dec. 5, 2022).

The initial FLRAA deal to Bell is worth up to $1.3 billion but could total $7 billion if all options are picked up.

The Army has recently detailed plans to move up the initial fielding of FLRAA by two years to 2028, with Bell telling Defense Daily it’s “confident” it can meet the accelerated timeline (Defense Daily, May 19).

Honeywell said the 36-150 APU for FLRAA will provide a secondary source of electrical and hydraulic power for the platform that “enhances mission readiness and flexibility of aircraft operations,” noting that versions of the capability are currently in use on the Army’s fleet of UH-60 Black Hawk and AH-64 Apache helicopters.

For the FLRAA cooling solution, Honeywell described its Attune high-density cooling technology as “a lightweight, low-maintenance and energy-efficient thermal management system” that is “up to 35 percent lighter and 20 percent more efficient than conventional systems with comparable cooling capacity.”

“Capitalizing on decades of experience producing industry-leading air cycle systems, Honeywell has developed Honeywell Attune with weight, size, and power advantages over traditional systems,” Honeywell said. “Honeywell Attune provides Bell with a lower-risk technical solution as it has been successfully introduced into commercial aircraft for both cabin and aircraft systems cooling.” In late March, GE Aerospace [GE] announced it had been awarded a subcontract to deliver the avionics system for FLRAA, which followed Bell’s prior decision to select GE as the “digital backbone” provider for the platform (Defense Daily, March 31).

Australia Test Teams Up Ghost Bat Drones With E-7A Wedgetail Aircraft

Australia on Monday said that it demonstrated pairing two MQ-28A Ghost Bat drones controlled from an E-7A Wedgetail aircraft.

The Australian Ministry of Defense explained that during the test out of Royal Australia Air Force (RAAF) Base Woonera, South Australia a single operator aboard the airborne E-7A Wedgetail airborne early warning and control aircraft took control of two Ghost Bats to conduct a mission against an airborne target.

Artist’s rendition of a Royal Australian Air Force E-7A Wedgetail crewed aircraft teaming with two uncrewed MQ-28 Ghost Bat collaborative combat aircraft. (Illustration: Boeing). — Artist’s rendition of a Royal Australian Air Force E-7A Wedgetail crewed aircraft teaming with two uncrewed MQ-28 Ghost Bat collaborative combat aircraft (Illustration: Boeing).

MQ-28A co-developer Boeing [BA] noted the test also included a third digital Ghost Bat and that the E-7A operator controlled the aircraft to test how they plan to operate them by flying ahead of and protecting crewed assets.

The MQ-28A Collaborative Combat Aircraft (CCA) was co-developed with Boeing [BA]’s Defense Australia subsidiary and integrates artificial intelligence and autonomy to collaboratively work with the crewed aircraft to extend its capabilities. The ministry did not disclose when the test demonstration occurred.

The government boasted MQ-28A is the country’s first exploration of CCAs and the first military combat aircraft designed, engineered and built in Australia in over 50 years.

In a statement, Minister for Defense Industry Pat Conroy, argued that this step in the aircraft’s development shows “the Ghost Bat has the potential to turn a single fighter jet into a fighting team, with advanced sensors that are like hundreds of eyes in the sky. Autonomous collaborative platforms enhance the integrated force’s ability to deliver a strategy of denial, by increasing the lethality and survivability with a reduced risk to our forces.”

“This trial demonstrates family-of-systems integration, the strength of our open systems architecture, and is a critical first step toward integrating mission partners’ software and communications systems natively into the E-7A Wedgetail,” Glen Ferguson, director MQ-28 Global Programs, said in a statement.

Boeing is building the MQ-28A Ghost Bat for the Royal Australian Air Force (Boeing Photo)

He added that this test both validated a key part of the Ghost Bat’s concept of operations but also “how collaborative combat aircraft can expand and enhance the role of the E-7A to meet future force requirements. It is another tangible proof point of the maturity of our program.”

Boeing noted the software used in the test was jointly developed and implemented by Boeing’s Defense Australia subsidiary, the ministry’s Defence Science and Technology Group and the U.S. Air Force Research Laboratory.

The company also elaborated this Wedgetail trial was part of a series of events with RAAF assets in 2025, known as Capability Demonstration 2025.

It said this focused on demonstrating MQ-28’s operational effectiveness and how CCA will integrate with crewed Australia aircraft assets and future events will add teaming with the F/A-18F Super Hornet and F-35 Joint Strike Fighter.

As far back as 2023, the company said it was conducting a test program with the Ghost Bat in the U.S. (Defense Daily, May 26, 2023).

Kratos Plans New Facility To Produce Engines Co-Developed With GE Aerospace

Kratos Defense & Security Solutions [KTOS] on Monday said it will open a 50,000 square-foot facility in Oklahoma to manufacture a family of turbojet engines it is developing with GE Aerospace

[GE].

The initial focus of the advanced manufacturing plant will be on the 800-pound thrust GEK800, one of a family of small, lower cost engines the companies are developing to power expendable, unmanned platforms.

Kratos said the new facility is expected to expand to 100,000 square feet and house up to five GEK engine production lines supporting thrust classes from 600 to 6,000 pounds. Initially, the companies are targeting 500 engines annually.

Earlier this month, Kratos and GE Aerospace detailed work to develop a 1,500-pound thrust GEK1500 aimed at powering the “lower end” of Collaborative Combat Aircraft designs, with plans for a prototype demo in 2026 (Defense Daily, June 3).

The plant in Bristow, Okla., will begin occupancy in mid-2026 and increase to full operations by the fourth quarter of 2026. The first engine line is expected to create 60 jobs, and each additional production line about 45 new jobs.

The facility will also include three small engine test cells for engines between 200 and 2,000 pounds of thrust, and will be operational in 2027.

“The new Kratos investment reflects our continued commitment to delivering high-performance, affordable jet engine technology to support the Department of Defense and our allies, and answers the rising demand for propulsion systems for cruise missiles and CCA [collaborative combat aircraft]-type aircraft, while being targeted and optimized for cost reduction,” Eric DeMarco, president and CEO of Kratos, said in a statement. “The Bristow facility will play a critical role in accelerating production of the GEK family of engines, including the GEK800, and strengthening America’s industrial base in this decisive era.”

Leidos Taps Pratt & Whitney For Engine To Power Black Arrow Cruise Missile

Pratt & Whitney on Monday said that Leidos [LDOS] has awarded the company a contract to supply TJ150 engines for the Black Arrow small cruise missile being developed to provide the Defense Department with an affordable strike weapons capability.

The value of the award was not disclosed.

The high-performance, single rotor, one-stage turbojet engine was used in a Black Arrow flight test last November from a U.S. Special Operations Command AC-130J aircraft (Defense Daily, March 31). The 150-pound thrust TJ150 is used to power several missiles, including the RTX [RTX]-built Miniature Air Launched Decoy. More than 2,700 of the engines have been delivered to customers globally.

“The ability to rely on a proven propulsion system like the TJ150 frees up our team to focus on optimizing the missile to meet the needs of the strike weapons community,” Mark Miller, senior vice president for missile and aviation systems at Leidos, said in a statement.

The companies begin integration studies in 2023 and the contract, which began in April 2025, runs through the first quarter of 2026. The award has an option for additional engines.

“Production capacity is in place today, ahead of demand, which strongly positions the TJ150 engine for a range of high-rate production scenarios,” Chris Hugill, executive director of Pratt & Whitney GATORWORKS, said in a statement.

Pratt is an operating segment of RTX.

USSOCOM last December awarded Leidos a contract to continue expanding the flight envelop and utility of Black Arrow through 2025.

Moog, Inc. [MOG.A] is providing the control actuation system for Black Arrow (Defense Daily, May 12).

USAF Explores Possible Minuteman III Development, Operations, Sustainment Program

The U.S. Air Force Nuclear Weapons Center may hold an industry day in late August at Hill AFB, Utah to gauge industry capacity to support a possible ICBM Development, Operations, and Sustainment (IDOS) program for the Boeing [BA] Minuteman III (MMIII).

Such a contract would “ensure continued operational readiness, availability, reliability, and maintainability of the MMIII weapon system and associated programs through end of life,” according to a Friday business notice.

“The MMIII weapon system is tracked through a work breakdown structure with about 2,800 individual risk-rated line items listed/monitored with up to 125 product support initiatives tracked annually across approximately 65 working groups,” the notice said.

The Air Force has said that extending the life of the 1970s-era Minuteman III’s long-term is not “viable” and that the service plans to replace the Minuteman III with Sentinel in the 2030s.

In April, a Congressional Budget Office study estimated that Pentagon nuclear modernization would cost at least $946 billion between this year and 2034—a projection that does not include “significant additional increase in costs” that may stem from a restructuring of the program to replace MMIII–the Northrop Grumman [NOC] LGM-35A Sentinel– and delays that are to come with Air Force efforts to reduce costs after the service notified Congress of a Nunn-McCurdy critical cost breach for Sentinel in January last year (Defense Daily, May 30). Sentinel’s estimated cost has more than doubled to $140 billion, and this month’s annual Government Accountability Office weapons systems assessment said that costs could easily reach $170 billion in fiscal 2025 dollars.

“If the president determines—which is his right—that we need to maintain 400 warheads on ICBMs, there are lots of ways we can do that,” Jon Wolfsthal, director of global risk at the Federation of American Scientists and a former nonproliferation adviser to the Obama administration, told the Bulletin of the Atomic Scientists. “During the Obama administration in 2016, we suggested that you could take the 200 most reliable Minuteman IIIs and simply put two warheads on each of them. You would cut the reliability risk of the ICBM program significantly, because you could take the most reliable, most modern of the Minuteman IIIs and maintain two warheads on each. This wouldn’t risk inviting an attack because Russia or China would still have to strike at 200 fixed land targets. So, you still would have the sponge and a very visible deterrent, but that was rejected by the Air Force as unworkable, even though it turns out the Sentinel program is also unworkable.”

Ursa Major Gets Largest Contract To Date In $33 Million Order By Stratolaunch For Hadley Engines

Propulsion developer and manufacturer Ursa Major on Monday said it has received a $32.9 million contact from Stratolaunch to provide 16 upgraded Hadley engines that the aerospace vehicle testing company will reuse to increase flight test cadence to support hypersonic technology development.

The contract for the Hadley H13 liquid rocket engine is Ursa Major’s largest ever. The Denver-based startup’s previous largest contract was for 10 Hadley engines in April with Sirius Technologies, the U.S. subsidiary of Japan’s space launch company Innovative Space Carrier.

Delivery of the first engine is expected in August 2026 and the performance period runs through December 2029, a Stratolaunch spokesperson told Defense Daily. The company expects to perform eight flights with each engine, which will support Department of Defense and private industry customers on future Talon-A flights, the spokesperson said.

The Talon-A is Stratolaunch’s reusable uncrewed hypersonic vehicle that is air-launched by the company’s Roc carrier aircraft. In March under a DoD contract, Stratolaunch successfully conducted a second flight of its Talon-A2 hypersonic vehicle powered by a previous version of the Hadley 5,000-pound thrust engine (Defense Daily, May 5).

Engine reuse will drive down the cost of each flight and support “new test objectives and mission profiles,” Ursa Major said.

“The previous engines have not been reused yet, but they will in the future,” Chris Spagnoletti, president of liquid systems at Ursa Major, told Defense Daily in an email reply to questions. “The H13 engine uses advanced metals and is designed to fly more than double the amount of flights than the current H11 engine, ensuring Ursa Major can continue to provide Stratolaunch with the most cost-effective hypersonic propulsion technology on the market.”

The Talon-A flights for DoD are part of the department’s Multi-Service Advanced Capability Hypersonic Test Bed, called MACH-TB, a new campaign for hypersonic flight testing.

House Appropriators Pass $831.5 Billion FY ‘26 Defense Bill With Measures Protecting UH-60, E-7 Funds

The House Appropriations Committee voted 36-27 to pass its $831.5 billion defense spending bill, as lawmakers reiterated the uncertainty of advancing appropriations legislation without having received full budget details from the Trump administration.

During the HAC markup, lawmakers adopted provisions to protect funding for UH-60 Black Hawk helicopters and E-7A Wedgetail airborne early warning aircraft from potential cuts while voting down a measure to add $300 million in Ukraine security assistance to the bill.

Rep. Ken Calvert (R-Calif.), chair of the House Appropriations Defense Subcommittee, provides remarks at the full House Appropriations Committee’s markup of its fiscal year 2026 defense spending bill on June 12, 2025. Photo: House Appropriations Committee.

“The committee recommendation is fiscally responsible [and] adheres to the budget cap put forward by the administration in the abbreviated budget proposal. The committee recommendation was developed with an awareness of the defense investments moving on a parallel legislative track through the reconciliation process. While we sought to synergize the investments in our bill to the extent possible to those in reconciliation, the mandatory spending proposals in the administration’s budget fall outside the jurisdiction of this committee and are not addressed in this bill,” Rep. Ken Calvert (R-Calif.), chair of HAC’s defense subcommittee, said at the markup.

HAC-D unveiled its $831.5 billion proposal on Monday, a flat spending level when compared to FY ‘25 enacted funding but which aligns with the administration’s plan to factor in reconciliation funds to achieve a $1 trillion total national security topline (Defense Daily, June 9).

The White House in May rolled out a “skinny” budget outline for FY ‘26, touting an “unprecedented” 13 percent boost in defense spending, while the proposed $1 trillion national defense topline factored in a $113 billion increase that would come from funds in the pending reconciliation bill (Defense Daily, May 2).

Calvert said it was a “challenged process” crafting defense spending bill due to the “continuing lack of a defense budget,” and noted that the committee efforts to look at areas for cuts was “hampered by the lack of a full budget proposal and detailed justification material.”

“This lack of information meant the committee was unable to examine up to date program execution data, [making] it more difficult to assess either opportunities for increased investment or for additional reduction and elimination,” Calvert said.

Rep. Betty McCollum (D-Minn.), the HAC-D ranking member, further cited the “unprecedented circumstances” of putting together an appropriations bill without full budget details and noted the uncertainty of funding plans tied in with anticipated spending in the reconciliation bill.

“For example, Golden Dome at this point is merely a concept – we don’t have a plan. None of us have been briefed on how the administration intends to spend $175 billion or deliver it in three years. A portion of Golden Dome is listed in the reconciliation bill. But…what will [DoD] do if that does not pass in reconciliation? They can’t come back to this committee and ask us to fill those gaps. And that’s why defense spending should never have been included in reconciliation,” McCollum said at the markup.

A budget document the White House submitted to Congress this week lists several major programs where the Pentagon is requesting that large portions of the FY ‘26 funding come from the reconciliation bill, to include all of the requested dollars for the Golden Dome project and nearly half of funds for the B-21 bomber, while spending allocations in the reconciliation bill have not yet been finalized (Defense Daily, June 11).

Rep. Steny Hoyer (D-Md.) said at the markup that Russell Vought, director of the Office of Management and Budget, has indicated that the White House won’t deliver full budget documents to Congress until the reconciliation bill is passed.

During the mark-up, HAC adopted two measures by voice vote as part of a package of bipartisan amendments that would block reprogramming funds away from the Black Hawk and E-7 programs and protect those platforms from potential cuts.

Rep. Rosa DeLauro (D-Conn.), the HAC ranking member whose district includes Stratford, Connecticut where Sikorsky [LMT] builds the Black Hawk, pressed Army leaders at a hearing in May on their lack of commitment for awarding another UH-60 multi-year contract (Defense Daily, May 7).

“I think [the Black Hawk] is a critical tool and I hope you agree with me that is the case,” DeLauro said at the time. “It’s not just a constituency issue here…it’s about the Black Hawk and what it has meant to the safety of our soldiers and the national security of this country. That is my primary goal in addressing this issue.”

For the Boeing [BA] E-7, HAC’s defense bill includes $500 million for the platform and rebukes the Trump administration’s plan to cancel the plane as a successor to the E-3 Airborne Warning and Control System (Defense Daily, June 12).

The bipartisan package of amendments that was adopted to the bill includes requiring Secretary of Defense Pete Hegseth to provide regular reports on the progress of AUKUS’ Pillar 2 focused on advanced technologies work with the U.K. and Australia and to provide detailed information on efforts to develop counter-drone capabilities across the department.

A measure from Rep. Marcy Kaptur (D-Ohio) to add $300 million for the Ukraine Security Assistance Initiative was not adopted by voice vote, with HAC Chair Tom Cole (R-Cole.) citing his support for helping Kyiv while noting that adding the amendment could “jeopardize” some Republican votes for the bill.

“The politics is just practical. I want to get a defense bill done. And I’m not interested in dividing those who will support it initially by adding an issue that to them is very important and they feel very strongly about. And that’s really the deal here,” Cole said, adding that Ukraine aid “at time this is a very divisive issue.” “If you put this in here, you’re going to end up voting against it yourself in many, many cases. You will vote against the bill that carried the amendment that you supported. And you will expect the people that disagree with you on that amendment to vote for the bill, and they probably won’t or might not.”

McCollum noted Democrats’ opposition to the defense spending bill over the inclusion of “poison pill riders,” such as measures limiting servicemembers’ ability to travel to seek abortion-related care and anti-LGBT provisions, as well as the lack of Ukraine aid.

“Every member here knows what needs to happen for this bill to become law. The Trump administration needs to do its job and submit a complete budget request to Congress. The partisan riders have to come out. That is the only way this bill will get the bipartisan support it deserves. It was deeply unfortunate that we wasted an entire year,” McCollum said.

GAO Says Navy To Merge MUSV and LUSV Programs, Skeptical XLUUV To Become Program Of Record

The Navy plans to merge the programs for the Large and Medium Unmanned Surface Vessels (LUSV and MUSV) into a single autonomous surface craft program while delays to the Orca XLUUV mean the Navy may not turn it into a program of record, according to the Government Accountability Office’s (GAO) annual weapons systems assessment.

The report, published June 11, said Navy officials in April told the GAO they would merge the MUV and LUSV programs. The consolidated program thereafter aims to start development under the major capability acquisition pathway by FY 2027.

The Overlord Unmanned Surface Vessel (OUSV) Mariner and Ranger maneuver in the Pacific Ocean during Integrated Battle Problem (IBP) 23.2 on Sep. 16, 2023. (Photo: U.S. Navy by Mass Communication Specialist 2nd Class Jesse Monford)

This follows statement from Rear Adm. Bill Daly, Director, Surface Warfare (N96), who in January said the Navy was shifting from separate LUSV and MUSV programs into one combined larger end MUSV program that would have different payloads to accommodate the separate previous MUSV intelligence, surveillance and reconnaissance (ISR) and LUSV adjunct magazine mission concepts (Defense Daily, Jan. 14).

At the time, Daly said the synthesized MUSV should be about 200 feet long and able to field four 40-foot payload containers similar to the Overlord Unmanned Surface Vessels that have been tested in recent years, based on offshore oil drilling supply vessels.

Daly also estimated the costs for each MUSV could be $50 million each and allow competition with many shipyards, given the Overlord MUSV origins as common commercial vessels (Defense Daily, Jan. 17).

GAO noted that previously the Navy planned for LUSV to be a long-endurance ship intended for warfare operations with varying levels of robotic system autonomy combined with a crewed ship. It also wants them to be low-cost ships that feature modular payloads, especially to augment fleet missile capacity.

However, the LUSV program hit a delay in awarding the detail design contract in fiscal year 2025, and GAO said the Navy now plans to award the contract in FY 2027, “a more realistic date for the program to achieve, according to program officials.

Given the merging of MUSV and LUSV, the 2027 date has shifted to the decision on acquisition pathway.

Despite the program change, the report revealed several other aspects of Navy USV planning. It said the Navy has been developing a new LUSV cost estimate using stakeholders from outside the program office “because the Navy often uses assumptions in its initial cost estimates that may not apply to the LUSV.”

The Mariner Ghost Fleet Overlord Unmanned Surface Vessel moored at the U.S. Naval Academy in Annapolis, Md. on Aug. 22, 2022. Two 20-foot payloads sit at the front of the payload deck. (Photo: Richard Abott, Defense Daily) — The Mariner Ghost Fleet Overlord Unmanned Surface Vessel moored at the U.S. Naval Academy in Annapolis, Md., on Aug. 22, 2022. Two 20-foot payloads sit at the front of the payload deck. (Photo: Richard Abott, Defense Daily)

While the Navy usually focuses cost estimates based on a ship’s weight, the automated systems on the Large USV forced them to change the planning because the automated systems have different weights than traditional systems due to the need for the mechanized controls.

GAO also said the Navy is developing a “repository of autonomous capabilities” from government and industry partners and that industry will act as the system integrator for the USV and other autonomous systems, that the approach aims to reduce software acquisition and sustainment costs across various autonomous systems, and it plans to leverage the repository to fulfill LUSV mission requirements.

Separately, the report noted the significant delays with the Boeing [BA]-produced Orca Extra Large Unmanned Undersea Vehicle (XLUUV) program.

While the Navy started developing XLUUV in FY 2027, the program has been delayed more than once and it now expects to get the initial five prototype vessels before the end of 2025, a three-month delay from a year ago.

Last month, a service official said they now plan to receive the first OXLUUV this summer, dubbed XLE-1, with the remaining vessels delivered within a year and a half (Defense Daily, May 9).

During a December visit to Boeing’s California facility by former Chief of Naval Operations Adm. Lisa Franchetti, the Navy said XLE-1 was set to be delivered in early 2025 (Defense Daily, Dec. 10).

“It is now unclear whether the Navy will transition the XLUUV to a program of record because there are no clear requirements that the XLUUV can meet within current budget constraints, according to officials,” the report said.

Further changes to XLUUV payloads to meet other requirements or capability gaps would mean the Navy paying the contractor to modify the XLUUV’s proprietary software, officials told GAO.

“However, officials said that the modular design of XLUUV software and payload modules provides hardware flexibility and supports the potential for adopting an iterative approach. Should the Navy decide to transition to a program of record, an iterative approach could accelerate the Navy’s deliveries,” the report continued.

Orca XLUUVs will start with the sole purpose to deliver clandestine mines, but the Navy envisions them ultimately performing more missions, like deploying other smaller unmanned vessels.

The Orca is already running years later than first planned due to fabrication delays and “ongoing battery development challenges,” GAO said.

Boeing delivers first Orca XLUUV test asset to the Navy in December 2023. (Photo: Boeing)

A 2022 GAO report explained the vehicles’ issues, largely related to poor business planning because the Navy did not require Boeing to demonstrate its readiness to build the Orca to the Navy configurations compared to the Echo Voyager base commercial model (Defense Daily, Sept. 29, 2022).

At the time, the report noted the Navy’s changes to the battery requirements were so significant that the company had to find a totally new battery subcontractor.

GAO now says the battery challenges have remained so significant that the Navy plans to use less-capable battery technology than it wants for testing while it awaits Boeing’s development of the intended final XLUUV battery.

The Navy also plans to start operational testing that verifies the system meets mission requirements concurrently with acceptance of the prototypes in FY 2025, but in April the Department of Defense Director, Operational Test and Evaluation (DOT&E) said the program is experiencing testing delays.

The Navy claims XLUUV will be ready for operations in fiscal year 2026.

Defense Watch: Coast Guard V-BAT, QUICKSINK, Cyber ROE

Readying for V-BAT. The Coast Guard is readying three of its National Security Cutters (NSCs) to begin testing and deployment of the V-BAT unmanned aircraft system (UAS) this summer, a service spokesperson told Defense Daily

last week. The cutters are undergoing minor modifications of electrical and fiber optic systems, and installing equipment necessary for V-BAT operations. The Coast Guard is not disclosing the specific timing of the initial deployments due to security protocols but they are part of regular operational patrols, the spokesperson said. The Coast Guard in June 2024 awarded Shield AI a $198 million contract to operate the Group 3 UAS aboard the 420-foot high endurance cutters. Boeing’s ScanEagle UAS is currently used on the NSCs.

MDA Evaluation. The Missile Defense Agency on June 10 awarded Integration Innovation Inc. (i3) a contract potentially worth up to $429 million to have it help evaluate new missile defense system capabilities. The contract announcement specifically said i3 will have it “enable the identification, collection, distribution, and analysis of critical test data needed to assess and evaluate new and updated Missile Defense System capabilities to support fielding decisions to the Warfighter.” At the time of award MDA issued a $100,000 task order to start, with work to occur in Huntsville, Ala., and Colorado Springs, Colo. The total ordering period is set to last through June 2030, plus five one-year options that could last through June 2035. MDA noted i3 was the winner among 14 proposals it received. This award comes as MDA calls on industry and academia to submit white papers on useful technologies for next generation missile defense, in line with the White House’s Golden Dome initiative.

ONR Lasers. The Office of Naval Research on June 10 awarded Coherent Aerospace & Defense a cost-plus-fixed-fee contract worth up to $30 million for laser weapon system components. It specifically covers the SONGBOW Pulsed Fiber Lasers and Directed Energy Subsystems with High Bandwidth Wavefront Control Project. The DoD announcement said the contract covers development of pulsed fiber lasers for remote sensing and illumination that it also hopes will “further the development of a 400 kilowatt (kW) directed-energy subsystem by integrating a 50-kW laser with a beam-control assembly.” The $30 million contract value incorporates a 20-month base period combined with one 11-month and one 18-month option periods that would run concurrently. This was the result of a competitive procurement , with proposals received throughout the year under a long-range Broad Agency Announcement, so DoD could not describe the number of proposals they received.

EPF-15. Austal USA announced that the shipbuilder and the Navy’s Expeditionary Fast Transport (T-EPF) program team completed acceptance trials on the future Spearhead-class future USNS Point Loma (EPF-15) on May 21. The next step for EPF-15 is delivery to the Navy, set for this month. This is the second EPF Flight II ships delivered to the Navy, following USNS Cody (T-EPF-14). The Fight II variant includes “enhanced” naval medicine capabilities, on the way to ultimately producing a modified EPF as a full medical vessel, the Bethesda-class (EMS-1). The new class will aim to provide hospital-level care. Austal had delivered 14 EPFs to the Navy, with two Flight II EPFs still under construction.

LPD-25 Maintenance. The Navy on June 12 awarded BAE Systems’ San Diego Ship Repair facility a $156 million contract for the maintenance, modernization and repair of the amphibious transport dock ship USS Somerset (LPD-25) in a fiscal year 2025 Docking Selected Restricted Availability (DSRA). The announcement notes this covers all of the labor, supervision, equipment, production, testing, facilities, and quality assurance needed to prepare for and perform the work. The contract includes options that, if exercised, would raise the total value up to $178 million. The work is expected to be finished by January 2027. While the contract was solicited for pen competition, DoD noted this was the only offer it received for LPD-25.

B-2 QUICKSINK. The U.S. Air Force said this month that a service B-2 Spirit stealth bomber by Northrop Grumman used a 500-pound, long-range anti-ship weapon from the Air Force Research Laboratory in a QUICKSINK test at the Gulf Test Range by the Air Force 53rd Wing at Eglin AFB, Fla., Air Force Col. Dan Lehoski, the 53rd Wing commander, said in an Air Force statement that the QUICKSINK demonstration “offers an affordable, game-changing solution to rapidly and efficiently sink maritime targets” and that the weapon “adds options for the warfighter and enhances operational flexibility.” DoD has previously used Air Force F-15 and U.S. Navy F/A-18 fighters for QUICKSINK, and last year the Navy Pacific Rim Exercise featured a B-2 conducting a QUICKSINK Joint Capability Technology Demonstration using a 2,000-pound Boeing GBU-31 Joint Direct Attack Munition. The Air Force has said it wants to field the Spirit Realm 1 (SR1) open mission systems architecture for the stealth bomber, which first flew in 1989. SR1 comes under the B-2 Battlespace Collaborative Combat Communications (B2C3) integration effort. Under B2C3, the B-2 program is to replace the BAE Systems’ AN/ARC-234 radio, which is to retire by the end of fiscal 2026, and the HAVE QUICK waveform.

CYBERCOM Nominee? Among the eight flag officers fired by the Trump administration so far was Air Force Gen. Timothy Haugh, relieved in April as the head of U.S. Cyber Command (CYBERCOM) and the National Security Agency. “We pruned him for over a decade to fill those shoes, and I don’t know that anybody can fill those shoes right now, and it’s gonna take a year or two for people to get there,” said Rep. Don Bacon (R-Neb.), the chairman of the House Armed Services Committee’s Cyber, Information Technologies, and Innovation body. “I really believe that the most happy people on the firing of Gen. Haugh were Russia and China.”

…Explanation. Bacon said he knew most of the eight flag officers fired by the Trump administration, who also included then Chairman of the Joint Chiefs of Staff Air Force Gen. Charles Q. Brown. “Yes, the president has the constitutional right to hire and fire generals, but there’s also decency involved here,” said Bacon, a retired Air Force brigadier general. “I’ve known many of these people. I served with most of these folks when I was a colonel and as a one-star. I knew one as a captain. They served their whole adult life, and I think they deserved an explanation why they were fired, and I think the American people deserved that as well.”

…Limited Cyber Rules of Engagement. Bacon said he is concerned by limits on U.S. cyber offense and that “I think we should be carrying a bigger stick here,” given Russian and Chinese cyber attacks. “I’ve talked to multiple layers [of the U.S. cyber community], and they are restricted based off the rules of engagement,” Bacon said. “Maybe they’re appropriate. I just hope we re-look at them because if China can attack our energy grid, our Wall Street grid, our hospitals, I think we should be reviewing if our response is adequate.”

York on Deck. The first of York Space Systems’ 12 prototype satellites it building for a Space Development Agency (SDA) constellation is ready to launch by the end of June, the Denver-based company said last week. The Dragoon mission will demonstrate secure connectivity to warfighter platforms for targeting, missile warning, and tracking of advanced missile threats. SDA in October 2022 awarded York a potential $200 million contract for the Tranche 1 Demonstration and Experimentation System, called T1DES, to demonstrate tactical satellite communications and Integrated Broadcast Service from low Earth orbit through 2031.

Security Detection Teaming. Artificial intelligence solutions provider BigBear.ai has teamed with Analogic to integrate its computer vision screening technology with Analogic’s computed tomography-based carry-on baggage scanners used at airports worldwide. BigBear’s computer vision technology comes via the company’s previous acquisition of Pangiam, which developed an AI-based threat detection platform for integration with security scanners. The companies said the integration will provide airport security personnel with real-time insights to adapt screening operations.

New Company Lab. Allen Control Systems has launched its Innovation Lab, bringing together interdisciplinary engineering teams to accelerate the development of autonomous systems. The lab will be led by Alex Clark, a former senior director of advance innovations at BlueHalo with experience in counter-unmanned aerial systems (C-UAS). Allen’s main product is Bullfrog, an artificial intelligence-enabled robotic weapons station for C-UAS. “We are doubling down on our commitment to build the weapons systems that the U.S. and our allies will need for the conflicts of the future,” Steve Simoni, co-founder and president of ACS, said in a statement. “Alex’s proven record of scaling complex defense technology programs and his deep engineering and technical expertise make him the ideal innovation leader.”

People News. Jason Rathje, who has led the Defense Department’s Office of Strategic Capital since it was created in late 2022, said last week he is stepping down. General Dynamics last week said that Danny Deep, the company’s executive vice president of Combat Systems, has been promoted to EVP of Global Operations with a base salary of $1.2 million. Jason Aiken, GD’s lead for the Mission Systems division, will also be EVP for Combat Systems. Miami-based drone maker Heven has appointed Michael Buscher as president of U.S. operations to lead engagement with the defense community and help scale operations for various government and commercial customers. Buscher is a retired Lt. Col. In the Army Reserve and former CIA officer.

Qatari Jet. Defense Secretary Pete Hegseth this week declined to publicly provide specifics on DoD’s potential acceptance of a 747-8 airliner from Qatar that President Trump reportedly wants to use as Air Force One. “Any specifics about future aircraft that could be Air Force One can’t be discussed here. But there is a conversation about a memorandum of understanding…[that] remains to be signed,” Hegseth said when pressed for details during his hearing before the Senate Appropriations Defense Subcommittee. Sen. Jack Reed (D-R.I.), who also chairs the Armed Services Committee, urged Hegseth to provide specifics, to include the cost of reconfiguring the aircraft to meet the security requirements for Air Force One. “Why can’t that be revealed in this session? This is the Appropriations Committee of the United States Senate. We appropriate the money that you will spend after it’s authorized by my committee, [SASC]. And you cannot tell us how much the contract is for?” Reed said.

‘Valley of Death.’ A new bipartisan proposal from the leaders of the House Armed Services Committee to speed up DoD’s acquisition process includes establishing the Bridging Operational Objectives & Support for Transition (BOOST) program at DoD to help promising technologies cross the “Valley of Death” from development into production. Reps. Mike Rogers (R-Ala.) and Adam Smith (D-Wash.), the HASC chair and ranking member, respectively, noted their Streamlining Procurement for Effective Execution and Delivery (SPEED) Act aims to help bring more new entrants to work with the Pentagon, to include reducing “barriers to the DoD’s use of commercial technology.” The legislation is expected to be included as part of the fiscal year 2026 National Defense Authorization Act, according to Rogers and Smith.

DOT&E Cut. Defense Secretary Pete Hegseth said this week his directive to reduce the size of the Pentagon’s Office of the Director of Test and Evaluation down by 50 personnel, down to 30 civilians, 15 military personnel and one Senior Executive Service leader, was a result of a review led by Deputy Defense Secretary Stephen Feinberg and the Department of Government Efficiency team working with DoD. “After we got rid of a lot of the really low hanging fruit of tens of billions [of dollars] of contracts and things that we’ve reduced that were duplicative, that were completely wasteful, that were creating PowerPoint presentations that no one was looking at, you start to look at things like DOT&E…which in a headline sounds quite significant and it can be in many ways. But when you ask the services and you ask the Joint Staff, you talk to the comptroller and CAPE and you go across the other under secretaries, there’s the universal recognition that the DOT&E’s mission has bloated and expanded well beyond the scope of what it was supposed to be,” Hegseth said at a House Appropriations Defense Subcommittee (HAC-D).

…Calvert Seeks Details. Rep. Ken Calvert (R-Calif.) pressed Hegseth for details on the DOT&E downsizing, which has already received push back from the top Democrats on the House and Senate Armed Services Committees. “There’s a lot of examples of DOT&E catching flaws that would’ve had catastrophic consequences for our military, including loss of life,” Calvert said. “We share the same goals to create a more efficient, leaner DoD. But with things like Golden Dome coming along, we want to make sure that the technologies we pick are going to work and that we fund them accordingly.”

FMTV A2 Extension. The Army on June 11 awarded Oshkosh Defense a $792.4 million contract extension for continued delivery of Family of Medium Tactical Vehicles A2 trucks. Oshkosh said the three-year deal extends deliveries on its current FMTV A2 contract into 2030, and will include providing the Low Velocity Air Drop (LVAD) vehicle variants. “The FMTV A2 contract extension enables the Army to continue modernizing its fleet with proven medium tactical vehicles in support of the Army Transformation Initiative and Force Design 2030,” Pat Williams, Oshkosh Defense’s chief programs officer, said in a statement. “The FMTV A2 LVAD variants fill a critical capability gap for the Airborne community by replacing an aging fleet with an upgraded capability that can be rapidly deployed in contested and austere environments.”

120mm Ammo. The Army on June 11 also awarded General Dynamics Ordnance and Tactical Systems a $706.5 million contract for production and delivery of 120mm ammunition. Work on the deal is expected to be completed by June 2029, according to the Pentagon.

Netherlands FMS. The State Department said on June 12 it has approved a possible $215 million foreign military sale with the Netherlands for nearly 300 Joint Air-to-Ground Missiles. Along with the Lockheed Martin-built JAGMs, the deal would also include captive air training missiles, missile handling training and spare parts. “The Netherlands intends to use these defense articles and services to modernize its armed forces and expand its capability to strengthen its homeland defense and deter regional threats. This will contribute to the Netherlands’ military goals of updating capability while further enhancing interoperability with the United States and other allies. These systems will be employed by AH-64 Apache attack helicopters operated by the Royal Netherlands Air Force,” the Defense Security Cooperation Agency said in a statement.

Tech Execs/Army. The Army on June 13 announced the establishment of the new Detachment 201: Executive Innovation Corps, swearing in four tech executives as Army Reserve officers to support the effort aimed at bringing in Silicon Valley expertise to support innovation efforts. “In this role they will work on targeted projects to help guide rapid and scalable tech solutions to complex problems. By bringing private-sector know-how into uniform, Det. 201 is supercharging efforts like the Army Transformation Initiative, which aims to make the force leaner, smarter, and more lethal,” the Army said. Shyam Sankar, Palantir’s chief technology officer, Andrew Bosworth, CTO of Meta, Kevin Weil, OpenAi’s chief product officer and Bob McGrew, adviser at Thinking Machines Lab and OpenAI’s former chief research officer, were sworn in as Army Reserve lieutenant colonels. “Their swearing-in is just the start of a bigger mission to inspire more tech pros to serve without leaving their careers, showing the next generation how to make a difference in uniform,” the Army said.