Kratos’ DeMarco Bullish On What Trump, With Help From Musk, Means For Startups And Non-Traditional Defense Companies

A second Trump administration committed to cutting federal spending could mean very good things for non-traditional defense companies and startups because of a focus on affordability, Eric DeMarco, the president and CEO Kratos Defense & Security Solutions [KTOS], said last week.

During the company’s third quarter earnings call the evening of Nov. 7, DeMarco was asked by one analyst if Elon Musk is given a role in the White House by President-elect Trump to gut government spending, what that might mean for the Defense Department’s budget and the legacy contractors versus the startups.

“At worst, this is neutral, but most likely this is going to be a very big benefit for the new entrants and the non-traditionals like Kratos,” DeMarco replied.

DeMarco highlighted comments Musk made two or three years ago at an Air Force conference saying that in five years jet drones will begin to replace manned aircraft.

“And he’s also looking laser focused on affordability and getting more for your money, which is, as everyone knows, that’s what Kratos has done with the drones and the hypersonics and the solid rocket motors,” DeMarco said.

For his company and others like Anduril Industries and BlueHalo, “I don’t see a better set up for guys like us,” he said.

Musk is the founder, chairman and CEO of SpaceX, and founder and CEO of electric vehicle manufacturer Tesla [TSLA]. Trump has mentioned a potential role for Musk in his administration aimed at shedding government waste, and Musk has floated the idea of a Department of Government Efficiency.

Another analyst asked about the growth outlook for Kratos based on new congressional leadership in the wake of the election that resulted in an upcoming takeover of the Senate by Republicans and control of the House still uncertain.

Sen. Roger Wicker (R-Miss.) may be the next chairman of the Senate Armed Services Committee. In May, he proposed boosting the fiscal year 2025 defense budget to $950 million versus the nearly $850 million requested and the $895 million recommended by House Republicans (Defense Daily, May 29).

DeMarco said that Wicker is a “100 percent patriot through and through” and that under his leadership of SASC defense budgets will “probably” get to $1 trillion.

“And I can go down the list on what people are speculating are going to have some of these important roles,” he said. “It looks like for United States national security, it’s going to be a Grand Slam, which we need right now for the country’s sake.”

Affordability will still be critical, he said.

In the third quarter, Kratos posted $275.9 million in sales, less than a percent gain from $274.6 million a year ago. High single-digit organic sales across most of the company’s operations were nearly offset by an expected $24.2 million decline in the Space and Satellite business due to original equipment manufacturer delays in delivering software defined satellites.

Net income swung to a $3.2 million, two cents earnings per share (EPS) profit, versus a $1.6 million (one cents EPS) loss a year ago.

Kratos maintained its outlook for between $1.1 billion and $1.2 billion in sales in 2024, representing growth of between 8 and 11 percent over 2023. The company expects around 10 percent more revenue growth in 2025.

Beginning in 2026, Kratos expects to begin generating top-line growth above 10 percent based on program wins in the coming months. The biggest constraint to the out-year forecast is finding qualified people, particularly for manufacturing, given the demand for labor now, he said.

U.S. Space Force Examining Follow-On Support for WGS and DSCS

The U.S. Space Force is seeking industry feedback by Dec. 2 to help the service determine an acquisition strategy for Commercial and Military Satellite Communications Operations Support (COSMOS)–a future follow-on to the Wideband Satellite Communications Operations and Technical Support II (WSOTS II) contract.

More than a year before the creation of the Space Force in December 2019, the U.S. Army awarded Harris–now part of L3Harris [LHX]–a nearly $218 million contract for WSOTS II through until 2027 (Defense Daily, Nov. 28, 2018).

The current contract has been to support 21 sites including operations and maintenance, life-cycle engineering, technical assistance, equipment installation, depot-level repair, logistics, cyber security, and training and sustainment.

Harris received the first contract to support the Army’s wideband satellite network in 2012.

“COSMOS will retain the current WSOTS II efforts in providing support to Space Operations Command (SpOC), Space Delta 8 (DEL 8), 53rd Space Operations Squadron (53 SOPS) and the Satellite Communications Office,” Space Force’s Space Acquisitions and Integration Office said in a Nov. 6 business notice.

The contract for WSOTS II is to end on Jan. 31, 2027.

Del 8 “is the focal point for U.S. protected and assured MILSATCOM,” while 53 SOPS provides “real-time correlated monitoring, control and management of MILSATCOM through five geographically separated Wideband SATCOM Operations Centers”–the access to DoD Wideband SATCOM and the “first line of defense for assigned satellites, terminals and users.”

SATCOM Office personnel manage payloads and support Regional SATCOM Support Centers (RSSCs).

COSMOS is to provide “services including system administration, operations support, training, database management, and network analysis of the Wideband Global Satellite System (WGS) and Defense Satellite Communication System (DSCS) constellations,” Space Force said.

Boeing [BA] is the contractor for WGS, Lockheed Martin [LMT] for DSCS.

The COSMOS contract will provide “DoD organizations with systems administration support and maintenance services associated with the Wideband SATCOM Operations Management System (WSOMS), which enables payload control on the WGS and DSCS satellites,” according to the business notice.

“Services provided include on-site and technical assistance at worldwide locations including 5 WSOCs, 4 RSSCs, 3 DISA management sites, and international partners,” Space Force said.

 

BlackSky Acquires Full Stake in LeoStella Ahead of Gen-3 Constellation

Ahead of launching the first satellites in its Gen-3 constellation upgrade, BlackSky [BKSY] fully acquired small satellite manufacturer LeoStella. BlackSky announced the move in its third quarter investor call on Nov. 7, along with 6% revenue growth and a strong quarter of contract wins.

LeoStella was a 50-50 joint venture between BlackSky and Thales Alenia Space. The small satellite manufacturer based in Washington state builds BlackSky’s satellites.

“BlackSky acquired our partner’s stake in LeoStella to help optimize the Gen-3 supply chain and production operations,” said Lyn Chassagne, BlackSky senior vice president of marketing & customer experience.

The Gen-3 satellite constellation will offer higher frequency monitoring and 35 cm resolution when launched. The first Gen-3 satellite is completing final testing and expected to ship to Rocket Lab’s launch site in New Zealand within the next few weeks, CEO Brian O’Toole told investors on Thursday.

BlackSky has also raised more than $45 million in growth capital to fully fund the baseline Gen-3 constellation upgrade. 

O’Toole said BlackSky is in the process of incorporating optical inter-satellite link (OISL) terminals into the Gen-3 design. The company has been awarded multiple contracts with U.S. government customers who want to explore integrating OISL terminals into Gen-3 satellites.

“The objective is to be compatible with both the Space Development Agency’s Transport Layer and commercial space transport layers,” O’Toole said. “Once operational, we expect delivery timelines to improve by 10 times, further reducing the already low-latency delivery of our imagery and analytic services that we are delivering today.”

Q3 Results 

BlackSky posted a near-record of $780 million in new contract awards during the third quarter. O’Toole told investors this was one of the strongest quarters of bookings in the past two years, driven by demand from defense and intelligence agencies for high-frequency imagery and advanced analytics.  

BlackSky reported third quarter revenue of $22.5 million, up 6% year-over-year. Year-to-date the company has posted 22% revenue growth. 

Most of BlackSky’s revenue is in imagery and software analytical services revenue. This accounted for $17.3 million in the third quarter, up 13% year-over-year.

Professional & engineering services revenue was $5.3 million during the quarter, down from $6 million in the year-ago period. 

Net loss for the third quarter of 2024 was $12.6 million, compared to a net income of $0.7 million in the third quarter of 2023. BlackSky said this change was driven by fluctuations in equity warrants and other equity instruments. 

BlackSky improved adjusted EBITDA during the third quarter, reporting $700,000 in adjusted EBITDA, compared to an adjusted EBITDA loss of $400,000 in the third quarter of 2023. This improvement was driven by higher revenues and improved gross margins. It was the fourth consecutive quarter of positive adjusted EBITDA. 

The company maintained its outlook for full year 2024 revenue of between $102 million and $118 million, and full year 2024 adjusted EBITDA of between $8 million and $16 million.

This story was first published by Via Satellite

Trump Likely To Push For Increase To NATO Burden Sharing Requirement: Analysts

As NATO countries assess how a second Trump administration will approach alliance priorities, analysts on Thursday said the president-elect could look to push increasing the burden sharing requirement to have allies spend a greater percentage of gross domestic product on defense.

Matthew Kroenig, vice president and senior director of the Atlantic Council’s Scowcroft Center for Strategy and Security, told reporters he could see Trump following through on a recent comment to have NATO countries pledge to spend three percent of GDP on defense, rather than the current benchmark of two percent.

Then President Donald Trump and President Emmanuel Macron of France during a pre-bilat discussion ahead of a NATO summit on Tuesday, Dec. 3, 2019, at Winfield House in London. (DoD photo by Army Staff Sgt. Nicole Mejia)

“I think he’s right on that. NATO has its first serious military plan since the end of the Cold War. These plans call for every country to provide concrete capabilities. Multiple high level NATO officials I’ve talked to say, by their internal calculations, that two percent is not going to be enough. Something more like 3.5 percent across the alliance is what’s going to be needed to provide the capabilities that [Supreme Allied Commander Europe] Gen. [Christopher] Cavoli is going to need to implement these defense plans,” Kroenig said.

On plans for the U.S.’ own defense spending, Kroenig said the Trump administration is likely to be the first to request a trillion dollar defense budget.

Sen. Roger Wicker (R-Miss.), who is likely to be the next chair of the Armed Services Committee, has previously detailed an agenda to boost defense spending to five percent of GDP (Defense Daily, Nov. 6). 

“That’s the clearest anchor point that we have. So I think that’s not a bad guess about where we might end up,” Kroenig said. “I think going to five percent would make a lot of sense.”

Trump has been vocally critical of NATO and on several occasions called out member nations that fall below the two percent burden sharing agreement, adding in recent remarks it leaves “our forces overstretched.”

“I’ll insist that every NATO nation must spend at least three percent. You have to go up to three percent. Two percent is the steal of the century, especially when we’re paying for it. We pay for them. It’s just not even believable. For most NATO countries, this will represent a defense budget increase of about 30 percent,” Trump said in remarks at the National Guard Association of the United States conference in Detroit in late August.

Kroenig on Thursday noted Trump has floated the idea of shirking NATO’s Article 5 responsibilities and not coming to the defense of countries that are attacked who have not met the two percent burden sharing requirement. 

“I suspect that won’t become actual policy,” Kroenig said. “But I could imagine that Trump would continue to speculate about this [in] part to generate leverage to encourage allies to do more.”

During a campaign rally in South Carolina in February, Trump recounted an anecdote from his first term in which he told a NATO country that “didn’t pay” he “would not protect” them if attacked by Russia.

“NATO was busted until I came along. I said, ‘Everybody’s going to pay.’ They said, ‘Well, if we don’t pay, are you still going to protect us?’ I said, ‘Absolutely not.’ They couldn’t believe the answer,” Trump said. “One of the presidents of a big country stood up, said, ‘Well, sir, if we don’t pay and we’re attacked by Russia, will you protect us?’ I said, ‘You didn’t pay. You’re delinquent?’ He said, ‘Yes, let’s say that happened.’ ‘No, I would not protect you. In fact, I would encourage them to do whatever the hell they want. You got to pay. You got to pay your bills.’ And the money came flowing in.”

Rachel Rizzo, a non-resident senior fellow at the Atlantic Council, said on Thursday that new NATO Secretary General Mark Rutte had a close relationship with Trump during his first term when he was prime minister of the Netherlands.

“[Rutte’s] seen by many as somewhat of a Trump whisperer, which I think probably played a choice into this choice for picking him as the next [NATO] secretary general,” Rizzo said.

The former Dutch prime minister, who succeeded Jens Stoltenberg as NATO secretary general in October, congratulated Trump on his election in a statement on Wednesday and said he looked “forward to working with him again.”

“When President-elect Trump takes office again on Jan. 20, he will be welcomed by a stronger, larger and more united alliance. Two-thirds of allies now spend at least two percent of their GDP on defense, and defense spending and production are on an onward trajectory across the alliance. We must continue these efforts in order to preserve peace and prosperity across North America and Europe,” Rutte said in a statement.

Rizzo on Thursday noted that when President Biden came into office, only eight NATO allies were meeting the two percent burden sharing goals and that the number has now grown to 23 countries. 

“I do think we might see a scenario where, instead of thinking of NATO as this holistic alliance underpinned by U.S. security guarantees, Trump will see it as more of a series of bilateral security agreements whereby the strength of those particular relationships and the U.S. [security] guarantee for that country is sort of dictated by whether or not that specific country is meeting its defense spending requirements,” Rizzo said. 

“I think Biden has been asking allies to do more [by] saying ‘pretty please.’ I think Trump is going to say pretty please,” Kroenig added during the briefing.

Kratos, L3Harris Successfully Fly Zeus Rocket Motors, Paving Way For Production

Kratos Defense & Security Solutions [KTOS] in late October successfully completed the first flight of a two-stage stack of solid rocket motors (SRMs), validating performance objectives to allow the Zeus rocket to transition to support testing by potential customers.

The Zeus 1 and 2 large SRMs are supplied by L3Harris Technologies

’ [LHX] Aerojet business and built to specifications created by Kratos in collaboration with customers. Kratos expects to have production ready motors in 2025 with deliveries beginning in the first quarter.

The suborbital flight test on Oct. 24 launched from NASA’s Wallops Island facility in Virginia and carried an undisclosed payload. The 32.5-inch Zeus SRMs were developed by Kratos to meet the “need for affordable commercial vehicle stages for hypersonic test, ballistic missile targets, scientific research, sounding rocket, and special customer missions,” the company said on Thursday.

The Zeus 1 SRM was successfully hot-fire tested in 2023 and the Zeus 2 earlier this year at L3Harris’ facilities in Camden, Ark. The Zeus 2 second stage is nearly twice as long as the first stage Zeus 1.

Kratos sees the Zeus system as a potential growth driver.

“Kratos’ strategy of making internally funded investments, to be first to market with relevant hardware, software and systems, in coordination with our partners and customers is working, as reflected in our financial results and our $12 billion opportunity pipeline,” Eric DeMarco, the company’s president and CEO, said in a statement announcing third quarter financial results. “A recent representative example of this success is the successful flight of Kratos’ Zeus 1 and Zeus 2 system solid rocket motor stack with our customer’s payload, positioning Kratos for potential growth above our current revenue year over year 10 percent target beginning in 2026.”

Dave Carter, president of Kratos’ Defense & Rocket Support Services Division, said in a statement about the first flight test that “The motors performed exceptionally well against predictions and are ready for immediate use by the broader test and research community.”

L3Harris said the new SRMs “replace legacy motors in fit and form while offering increased performance, allowing the motors to be used with existing rocket designs and infrastructure.”

Patriot Hits Missile Test Target While Integrated With New LTAMDS Radar

Last weekend a Lockheed Martin [LMT] Patriot Advanced Capability (PAC)-3 missile successfully intercepted a tactical ballistic missile (TBM) while integrated with

RTX [RTX] Lower Tier Air and Missile Defense Sensor (LTAMDS) radar.

The test occurred at the White Sands Missile Range, N.M., with Lockheed Martin noting it validated the advanced software updates that helps PAC-3 target advancing threats for the Army’s Integrated Air and Missile Defense (IAMD) architecture.

A PAC-3 Missile Segment Enhancement (MSE) missile test is conducted at the White Sands Missile Range, N.M. as part of a flight test for the U.S. Army. (Photo: Lockheed Martin)
A PAC-3 Missile Segment Enhancement (MSE) missile test is conducted at the White Sands Missile Range, N.M., as part of a flight test for the U.S. Army in 2016. (Photo: Lockheed Martin)

The flight test used both a PAC-3 Missile Segment Enhancement (MSE) and Cost Reduction Interceptor (CRI) to confirm they can detect, acquire, track and engage an “advanced TBM target.” 

“The interceptors were shot in a ripple configuration and successfully engaged and intercepted the TBM target,” Patriot maker Lockheed Martin said in a statement on Nov. 4.

The company said it prepared for this test by first working with the Army on a series of previous ground testing and captive carry tests, with it all building on previously demonstrated PAC-3 integration with the Army’s Integrated Battle Command System (IBCS) and LTAMDS radar.

IBCS is made by Northrop Grumman [NOC] that links various sensors to shooters and is seen as a key part of the Army’s future IAMD architecture.

The Army intends to replace the legacy Patriot radar with LTAMDS, which has 360-degree coverage.

“Integrating PAC-3 with new, advanced systems to deliver next-generation deterrence capability is a critical piece of the U.S. Army’s modernization strategy,” Brian Kubik, vice president of Lockheed Martin for PAC-3 Programs, said in a statement.

Trump Team More Than Two Months Late in Signing Transition MoU

The General Services Administration (GSA) on Aug. 27 sent a letter to former and current President-elect Trump at a P.O. Box in Arlington, Va.–a customary missive sent to all prospective presidents/transition teams offering the use of governmental office “space and communication systems, IT support, financial management, human resources management, telephones, furniture, vehicles, office equipment, mail management, and administrative support services (such as payroll, financial services, and contracting.)”

The offer would include 20,000 square feet of rentable space for 100 workers pre-election from Aug. 27 through Nov. 5 and 120,000 square feet of government office space for up to 360 workers post-election until the inauguration.

Yet, more than two months after the letter and following Trump’s Nov. 5 election win and Kamala Harris’ Nov. 6 concession, no one from the Trump team has signed the needed Memorandum of Understanding (MoU) to authorize the provision of such government office space and services to Trump transition personnel.

A representative of Harris’ team signed the MOU on Sept. 19–18 days after the GSA due date.

The lack of MoU approval by the Trump team thus far may indicate that it will use Trump Tower in New York City and/or Mar-A-Lago for a remote transition, rather than government offices, such as the Pentagon. That decision, beside creating possible security concerns, would mark yet another departure from established norms and rules that Trump has shown a predilection to flout.

The Trump team was also to have signed a transition MOU with the Biden White House by Oct. 1 to lay out an ethics plan for transition team members and to set out terms of cooperation between the Biden administration and the Trump team.

“Without signed MOUs between the President-elect, the current White House and GSA, there are many logistical questions about how agencies will coordinate with the President-elect’s transition team,” the Partnership for Public Service’s Center for Presidential Transition said in a Thursday email reply to questions. “When a transition team is receiving dozens of briefings from an agency, office space can be a basic source of logistical support to receive briefings and store materials.  Without those MOUs in place, agencies cannot begin to address those logistical questions.”

During the President George H.W. Bush to President-elect Clinton transition in 1992-93, “DoD had an office waiting for us on the D-ring, close to the SECDEF’s office,” Jeffrey Smith, senior counsel at Washington, D.C.’s Arnold & Porter, wrote in a Thursday email.

Smith, a former general counsel at the Central Intelligence Agency and top aide to former Sen. Sam Nunn (D-Ga.), was the chief of the Clinton Transition Team at the Pentagon after the November 3, 1992 election.

“On the day after he was named the winner,” Smith said of Clinton, “I was stunned when [Clinton advisor] Sandy Berger called me and said, ‘We’d like you to be the transition [head] at the Pentagon. I had no idea this was coming.”

“On the day after his [Clinton’s] election, there was some building in D.C. near the Pension Building [at 401 F St. NW] and that was already designated for the transition so I went down there after being called to report, and the lobby was crammed with people,” Smith said. “I took an elevator up to the fifth floor or whatever, and it was organized. To be sure, it was catch as catch can. There were different rooms–hand-written signs for [Department of] State and intelligence; etc…Within a day or two we were up and running. I went over to the Pentagon and had the good fortune of knowing a lot of people in the Pentagon.”

The late David “Doc” Cooke, the long serving head civilian administrator for DoD–the “Mayor of the Pentagon”–“met me and said, ‘Jeff, it’s so good to have you back. Here’s your office. What do you need from me? How many people are you gonna have here?'”

Smith said that the Bush-Clinton transition in 1992-93 for the Pentagon and State Department “went very smoothly,” in part due to the already established bonds between personnel and the quickly established logistical support.

“We had a ton of issues to deal with, but in terms of the mechanics, [then Defense Secretary Dick] Cheney’s people were good to us,” Smith said. “I knew some of them. I knew [Cheney’s special assistant] David Addington…We never had a lick of problems with anything from the Pentagon. I had existing clearances up to TS/SCI so that made it easy. There were very few administrative issues at all. We got right to work on the substantive issues.”

“The most important thing, I think, is for the transition team at the Pentagon to identify the really big issues [to be faced] on day one,” Smith said. “The number one issue is what international crises or challenges that you’re gonna face on day one and how you get ready for them, how you get briefed up, how you ask OSD and the Joint Chiefs to give you briefings on day-to-day national security issues he [Trump] is gonna face on day one–take your pick–on Ukraine, the war in Gaza, Russia, the BRIC [Brazil, Russia, India, China] nations. That’s gotta be a priority. Secondly is budget because the defense budget Trump will inherit is the one that’s been put together by the Pentagon over the last year or so. Is that a budget he wants to adopt? Does he want to make changes in it. You don’t have much time, and you’ve gotta work with Congress on that.”

Trump’s challenge of the 2020 election results and the Jan. 6, 2021 attack on the U.S. Capitol by Trump supporters to nix the certification of Biden as the President-elect made the 2020-21 presidential transition the most fraught in U.S. history, yet even in that environment, the GSA process continued, and GSA released up to $7.3 million for the Biden transition team on Nov. 23, 2020.

The current delay may mean that Trump policy executives are not at DoD on Inauguration Day or in the days after.

Clinton’s first defense secretary, Les Aspin, took office on Jan. 21, 1993–a day after the inauguration. To ensure there was someone in charge at the Pentagon during that ceremony to help ward off any contemporaneous foreign mischief, including from Serbian dictator Slobodan Milosevic, Cheney agreed to continue to serve as defense secretary for “four or five hours,” Smith said. Milosevic died in 2006 in jail in The Hague during his war crimes trial.

“I think it’s going to be much more difficult than what I faced,” Smith said of the 2024-25 DoD transition. “We [Clinton DoD transition staff] were all in the Pentagon. Everybody [in 1992-93] had existing security clearances. I have no idea whether his [Trump’s] Pentagon transition team will be known and liked by others or whether they’re gonna be some of his MAGA people. There were a lot of people that he [Trump] had in the Pentagon and in the national security world that were not widely admired so there may be some initial hostilities to work on.”

Even during the relatively benign transition of 1992/93, “I was surprised by the number of people who said they were not [interested in serving in White House-named Pentagon positions],” Smith said.

“I think that’s gonna be a challenge for this transition,” he said, given Trump’s temperament and his history of disparagement of his top personnel, including H.R. McMaster and John Kelly, during and after Trump’s first time in office.

On Oct. 21, 2020, two weeks before he lost the 2020 election to President Biden, Trump issued an executive order that would have stripped federal civil service protections, thus raising the specter of a possible decimation of the civil service workforce in favor of a new category of “Schedule F” political appointees and/or federal contractors.

Instead of competitive, civil service examinations to qualify for many federal positions, the “Schedule F” category would have included–and may still include, depending on Trump’s direction–White House appointments to formerly “career positions of a confidential, policy-determining, policy-making, or policy-advocating character not normally subject to change as a result of a presidential transition.”

“In appointing an individual to a position in Schedule F, each agency shall follow the principle of veteran preference as far as administratively feasible,’’ the Oct. 21, 2020 executive order reads.

On the day of this year’s Aug. 27 GSA letter offering transition funds to the Trump and Biden teams, Max Stier, the president of the non-profit Partnership for Public Service, said that a President-elect’s acceptance of GSA transition support would ensure that the new administration is “ready to run our government on day one.”

“Only about half of the country expects a peaceful transfer of power after this upcoming election, and this increased doubt is driven in part by a lack of trust in the presidential transition process itself,” Stier said in a statement. “One way to help to rebuild this weakened trust is for both Harris and Trump to demonstrate that they are taking the necessary steps to plan for a smooth and effective transfer of power. Accepting GSA’s support will send a much-needed signal to the public that they are doing just that.”

The Presidential Transition Act of 1963–updated in 2022– authorized GSA transition services to promote the orderly transfer of executive power and, in the words of the late Rep. Dante Fascell (D-Fla.), to avoid having a newly elected president and vice president “going around begging for money to pay for the cost of what ought to be legitimate costs of government.”

Navy Works With General Atomics And Lockheed Martin To Demonstrate Drone Control Station

The Navy tested command and control of an unmanned aircraft using its Unmanned Carrier Aviation Mission Control Station (UMCS) for the first time this week in a demo using the  General Atomics Aeronautical Systems, Inc. (GA-ASI) MQ-20 Avenger and

Lockheed Martin [LMT] software.

Naval Air Systems Command (NAVAIR) said GA-ASI initiated this joint demonstration that on Nov. 5 had the Unmanned Carrier Aviation program office PMA-268 use its UMCS with the MD-5 Ground Control Station (GCS), loaded with the Lockheed Martin [LMT] Skunk Works MDCX platform, command and control the GA MQ-20 Avenger.

MQ-25 Air Vehicle Pilots Lt. Matt Pence (forward) and Lt. Steven Wilster, conduct test run to monitor the Unmanned Carrier Aviation Mission Control System ground control station, located at Naval Air Station Patuxent River, Md., as the system commands the General Atomics Aeronautical Systems, Inc. (GA-ASI) MQ-20 Avenger surrogate, located at the company’s test facility in California, in preparation for demonstration event in November 2024. (Photo: U.S. Navy)
MQ-25 Air Vehicle Pilots Lt. Matt Pence (forward) and Lt. Steven Wilster conduct a test run to monitor the Unmanned Carrier Aviation Mission Control System ground control station, located at Naval Air Station Patuxent River, Md., as the system commands the General Atomics Aeronautical Systems, Inc. (GA-ASI) MQ-20 Avenger surrogate, located at the company’s test facility in California, in preparation for demonstration event in November 2024. (Photo: U.S. Navy)

GA said the MQ-20 technology demonstrator acted as a surrogate to demonstrate how the Navy’s Unmanned Carrier Aviation Mission Control Station (UMCS) can command various unmanned aircraft with autonomous maneuvers. The Navy noted this proves the UMCS can command other aircraft beyond the under-development MQ-25 carrier-based unmanned tanker aircraft.

Navy operators used an MD-5 Ground Control Station (GCS) out of the Navy’s Patuxent River, Md., test facility to command and control the MQ-20 flown out of GA-ASI’s Desert Horizon flight operations facility in El Mirage, Calif.

The team was able to operate over this large distance by using an unspecified proliferated Low Earth Orbit (pLEO) satellite constellation datalink. 

NAVAIR said it will use the data from this demonstration to refine program requirements and develop more key technologies. The team plans to conduct more digital and live surrogate test flights to demonstrate various aspects of CCAs including autonomy, mission systems, crewed-uncrewed teaming, advanced communications and more command and control development.

Lockheed Martin boasted its Skunk Works MDCX autonomy platform enabled the Navy air vehicle pilots to control the MQ-20 during its California flight.

NAVAIR describes the UMCS as a system-of-systems required for MQ-25 command and control that should apply to other Navy unmanned aircraft control in the future. 

GA underscored this was the first time any General Atomics UAS conducted bi-directional communications using the UMCS operation codes while also performing autonomous behavior, using the pLEO datalink.

“UMCS is laying a foundation that will enable control of all unmanned carrier aircraft, starting with the MQ-25 aircraft. The UMCS opens the door for efficiently introducing future unmanned systems into the complex carrier command and control architecture,” Capt. Daniel Fucito, PMA-268 program manager, said in a statement.

“This was a huge step for unmanned naval aviation. This demo showcased UMCS’s first live control of an unmanned air vehicle, and it was great to be part of history in the making. The team is paving the way for integrating critical unmanned capability across the joint force to combat the high-end threat our warfighters face today and in the future,” Lt. Steven Wilster, MQ-25 AVP, added.

General Atomics characterized this demonstration as part of the overall effort to move technology forward for the future Collaborative Combat Aircraft (CCA), for which the Navy and Air Force intend future manned fighters to command several unmanned wingmen to perform missions. 

A General Atomics MQ-20 Avenger drone returns to El Mirage Airfield, Calif. on June 24 after a flight test of the Skyborg Autonomy Core System during Orange Flag 21-2 at Edwards AFB, Calif. (General Atomics Photo)
A General Atomics MQ-20 Avenger drone returns to El Mirage Airfield, Calif., on June 24 after a flight test of the Skyborg Autonomy Core System during Orange Flag 21-2 at Edwards AFB, Calif. (General Atomics Photo)

The Navy, Marine Corps and Air Force are collaborating under a Tri-service Memorandum of Understanding for critical subsystems for CCAs, with the Navy leading development of a common control architecture and GCS, in collaboration with Lockheed Martin.

GA-ASI said the MQ-20 is being used “extensively” as a surrogate CCA testbed for autonomous technology development.

In April, the Air Force downselected to GA and Anduril for CCA testing, with them both set to move forward on detailed designs, manufacture and testing of production-representative test articles for the CCA program (Defense Daily, April 24)

“This effort was a prime example of industry partners and government agencies working together to perform important new capabilities. The team efficiently and safely demonstrated aircraft flight control from another government agency’s control station. Using GA-ASI’s Tactical Autonomy Core Ecosystem (TacACE) software, the team not only executed airborne commands, but did so in a safe, controlled environment,” GA-ASI president David Alexander, said in a statement.

John Clark, vice president and general manager at Lockheed Martin Skunk Works, said they are happy to collaborate with the Navy to help move toward its air wing of the future vision.

“The MDCX made it possible to rapidly integrate the MQ-20 ‘autonomy core’ with the UMCS, demonstrating common control capability and third-party platform integration,” Clark said in a statement.

US Launched Minuteman III ICBM With Three Test Warheads

The U.S. Space Force tested the intercontinental ballistic missile’s ability to strike targets with multiple warheads in a Minuteman III launch Tuesday at Vandenberg Space Force Base, Calif.

According to a press release by the Space Force base, an airborne command post controlled the  intercontinental ballistic missile (ICBM) test.

“These tests are demonstrative of what Striker Airmen bring to the fight if called by the president,” Gen. Thomas Bussiere, commander of Air Force Global Strike Command, said in the press release. “An airborne launch validates the survivability of our ICBMs, which serve as the strategic backstop of our nation’s defense and defense of allies and partners.”

The ground-based Boeing [BA] Minuteman III, which uses the W78 and W87 warheads, is set to be replaced by the Northrop Grumman [NOC] LGM-35A Sentinel, a nuclear-tipped missile, in the mid- to late-2030s.

NGA’s Munsell Aligning CAIO Efforts Against Agency’s AI Goals

Advocating for and ensuring his agency is investing in artificial intelligence capabilities is the “strong hand” that Mark Munsell will wield as the National Geospatial-Intelligence Agency’s (NGA) first AI chief and the vast bulk of these efforts will be applied toward NGA’s high-level goals for applying the technology.

The other hand, which Munsell called the “check hand,” is ensuring that NGA applies AI responsibly, safely, within the proper boundaries, does testing and evaluation, and that other users of geospatial intelligence AI comply with the agency’s policies. The work by both hands will be evenly applied, he told Defense Daily in an interview on Wednesday.

The strong hand will be getting after the goals that NGA Director Vice Adm. Frank Whitworth outlined earlier this year. These goals are to continuously improve AI around computer vision, analytic workflows, data collection orchestration, and enterprise infrastructure, enfolded by the responsible use of the technology (Defense Daily, May 10).

Munsell is director of NGA’s Data and Digital Innovation Directorate, a role that already puts him in charge of the computer vision-based NGA Maven program for target and object detections. In October, he was named the agency’s first Chief Artificial Intelligence Officer (CAIO), formalizing duties his directorate largely already been doing (Defense Daily, Oct. 30).

As the CAIO, he joins the intelligence community’s CAIO Council that supports the AI objectives of the Defense Department and intelligence agencies. He is also a member of NGA’s AI National Security Coordination Group that works to accelerate AI adoption and lower costs internally, share best practices across the agency, and advise NGA leadership on AI initiatives and applications.

About “90 percent” of the NGA CAIO’s work overlaps with what he has already been doing, Munsell said.

Some of what will be new for Munsell as the NGA CAIO will be responding to direction in President Biden’s recent National Security Memorandum on AI aimed at speeding the adoption of AI capabilities in national security systems while establishing guardrails to protect civil liberties and rights (Defense Daily, Oct. 24). Munsell said the memo holds relevant federal CAIO’s accountable to fulfilling certain tasks.

For example, NGA will stand up an artificial intelligence board that will support Munsell’s efforts and “will help adjudicate artificial intelligence requirements and also hold the implementation of artificial intelligence accountable to responsible and safety and ethical AI implementation,” he said.

Whitworth’s first AI-related goal for NGA is improving computer vision to get faster, more accurate detections, a primary focus area for Munsell.

“That is NGA’s enduring capabilities need to develop high quality computer vision models that basically emulate what a human can do cognitively looking at imagery, whether it’s still imagery or motion imagery, and discerning the objects on that imagery and putting those objects in some sort of context,” Munsell said. “That will be the core of our artificial intelligence capabilities development for years to come, and that’s of course, to increase our ability to positively identify objects of interest and precisely geolocate them.”

Using AI-enabled capabilities to improve the agency’s analytic workflow—Whitworth’s second goal—means expanding the use of generative AI, including large language models and multi-modal models that can sift through data such as language, text, audio, video, and images, Munsell said.

“That will be a big effort over the next year, to help analysts write reports, to help analysts sift through millions of former reports and summarize those, to help answer questions, deep questions of a lot of text and images,” he said. “So, putting that into the analytic workflow will be a big, big opportunity for us moving forward.”

NGA is “still in the experimental phase” with generative AI, he said, highlighting that the agency has a retrieval-augmented generation (RAG) development effort underway to apply a large language model to its “millions of historic reports” to answer questions.

Currently, NGA is using RAG capabilities based on open-source models but is “looking forward to the day that we’ll have access to the frontier models,” Munsell said. Frontier models are proprietary to the companies developing them.

Another “big opportunity” for NGA is to apply generative AI to collection orchestration goal, Munsell said. In May at the annual GEOINT conference, Whitworth said the agency wants to make the use of AI part of routine collection orchestration for tasking satellites, keeping in mind priorities and limitations, during normal times and in crises.

“So, if the director had a question about NGA reporting at a certain location and a certain intelligence problem, it could ask the model that question, and it would return with a summary,” Munsell said. “Much like an analyst would return by reading that reporting and summarizing it, the model would return information about that particular intelligence problem.”

The use of generative AI for collection orchestration is also “early innings” and expect to see the agency’s program offices begin to solicit help from industry in the next 12 to 18 months, Munsell said.

Whitworth’s four goal is for NGA to create an AI infrastructure that will help unlock the capabilities of the technology. Munsell said this infrastructure is essentially the “compute and storage” that will include having machine learning operations platforms to bring in models to run against the agency’s data.

This infrastructure is already being established, Munsell said. The next step is to “do some experiments” to see what works and where to invest more, which in turn may mean more compute and or more storage, he said.

Munsell said that much of the infrastructure effort “is based on our cloud service providers getting those things in place.”

As the NGA CAIO, Munsell said he will be working with all of the agency’s program offices on their opportunities to use AI and where they can invest in the technology, and then hold them accountable for implementation.