Acquisition headlines (8/2 – 8/8/2021)

Navy acquisition boss shifting programs to prep for project overmatch. (Breaking Defense) “It is my intent that all programs core to the NOA [Naval Operational Architecture] and the success of Project Overmatch will be aligned under PEO (C4I),” according to a July 20 acquisition decision memorandum signed by Frederick Stefany. [Navy PEO C4ISR would be an awesome budget portfolio pilot, wouldn’t it?]

Lack of JADC2 coordination across services is ‘recipe for disaster,’ analyst warns. (Air Force Magazine) “Todd Harrison, director of the center’s Aerospace Security Project [and former Acquisition Talk guest], argued that DOD’s current approach risks individual services, combatant commands, and agencies all developing “multiple stove-piped networks that do not allow the kind of interoperability and resilience that would be possible with a more coordinated approach.”… Establishing a joint program office, Harrison added, would ensure efforts are properly funded and synchronized.” [I’m not sure why there isn’t more discussion of DARPA’s MINC effort as integrative of federated networks.]

Why Kratos defense stock just cratered 13.5%. (Motley Fool) “Sales growth in “unmanned systems” — i.e., drones, Kratos’ sexiest segment — was particularly strong, rising 44%… Now here’s where the news turns bad: Despite the net profit, Kratos’ free cash flow for the quarter was negative $11.6 million, albeit partially due to capital investments made to grow the drones business.” [Yet Kratos’ stock has more than trebled the returns of the S&P 500 over 5 years.]

Top researcher says Space Force needs more balanced strategy to deliver short term results. (Federal News Network) “I am disappointed at the pace at which we’ve been able to move to a more resilient space architecture, but there are a lot of factors to consider and we are not just starting — from nothing,” said Col. Eric Felt during a Tuesday National Security Space Association event… Felt pointed to LEO, using commercial broadband services from low-earth orbit, as a good example of how the Space Force is using its status as a small military branch to embrace taking risk.” [Is Starlink in the lead for that RFI?]

General Electric robot navigates uncharted terrain in US Army demo. (Defense News) “General Electric’s Research Lab set a little autonomous robot loose in a wooded course in upstate New York in a demonstration for the U.S. Army… “Being able to essentially go into a new space, assess where you are, what you are looking at, understanding the uncertainty with which you’re operating under and then behaving accordingly is essentially what we’re driving toward with the SARA program,” John Lizzi, GE Research Lab’s robotics and autonomy tech leader, told Defense News.”

USAF not looking at MQ-Next as direct MQ-9 replacement, outlines reaper upgrades. (Air Force Magazine) “In the meantime, AFLCMC has laid out its timeline for an overall suite of updates for the MQ-9, called the “MQ-9 multi-domain operations,” or M2DO configuration, which includes improved communications [Link 16 datalink], increased power, autonomous takeoff and landing, and eventually increased use of artificial intelligence to make the Reaper more relevant in a high-end fight.”

FedRAMP just automated checking security authorization packages for completeness. (Fed Scoop) “The General Services Administration plans to release XML-automated validations next week allowing vendors to check their security authorization packages for completeness… before the program reviews them and decides whether to issue a cloud product an authority to operate (ATO).”

Bell changes design for the US Army’s future attack recon aircraft. (Defense News) “Bell initially unveiled a ducted tail rotor design for its 360 Invictus but has now opted to switch to an open tail rotor on the aircraft… The Army is interested in the balance between weight and speed and is considering capability parameters such as reaching 180 knots and weighing less than 14,000 lbs.”

Aerospace startup gets $60M from the US Air Force to build hypersonic passenger plane. (Defense News) “The U.S. Air Force and several venture capital firms are making a $60 million investment in Hermeus Corporation, a Georgia-based startup that wants to develop the world’s first reusable hypersonic aircraft.… Ultimately we want to have options within the commercial aircraft marketplace for platforms that can be modified for enduring Air Force missions such as senior leader transport, as well as mobility, [intelligence, surveillance and reconnaissance], and possibly other mission sets,” said Brig. Gen. Jason Lindsey.”

More on that from Jason Rathje… “Hermeus joins our 2020 cohort of 18 companies with the largest contract to date – $60M. In an incredible example of public-private partnership co-funding emergent tech, half of the funding came from the government (with $15M from AFVentures) and half from the private sector. And nothing is more “deep tech” than hypersonics!”

Shield AI signs definitive agreement to acquire Martin UAV. (AP News) ” it has signed a definitive agreement to acquire Martin UAV, an aerospace company best known for its industry-leading vertical takeoff and landing (VTOL) unmanned aircraft, V-BAT. Shield AI will integrate its combat proven autonomy software, Hivemind®, into the V-BAT, reinforcing Shield AI’s leadership position in defense-focused edge autonomy… [The V-BAT] offers 11 hours of flight time, carries 25 lbs. of payload, and can hover and stare 10 times longer than any of its competitors. Its logistics footprint fits into the bed of a pickup truck or inside a Blackhawk helicopter” [Interesting this time a software company is buying the hardware company, hot off it’s acquisition of AlphaDogfight winner Heron Systems.]

Geurts stepping down from Navy under secretary role, retiring from government. (USNI News) ”Although the DoN acquisition community only had him a couple years in his over 30 year defense career, his leadership made a big impact on the entire research, development and acquisition enterprise… He changed the culture, streamlined acquisition processes and requirements, and empowered teams to operate with a sense of urgency.” Also, Senate confirms Del Toro as 78th SecNav. (Navy Times)

DIU’s Butow pushes Space Force case on tactical ISR mission. (Breaking Defense) “Defense Department space leaders are pressing their case for the Space Force to take on responsibility for buying commercial satellite imagery and analytical products to support day-to-day military operations, despite cautionary rumblings from Capitol Hill about overlap with the Intelligence Community. Over the past two decades, “there’s been a lot of need to have [unclassified] imagery and information products on the fly.””

China reportedly converted civilian ferries for amphibious assault operations. (Defense News) “The report said that since 2019, the roll-on/roll-off ferry Bang Chui Dao, a 15,560-ton vessel owned and operated by COSCO Shipping Ferry Company, has been fitted with a modified ramp able to launch and recover amphibious armored vehicles while offshore… the Jamestown report identifying 63 vessels that could potentially be converted, citing data published by the PLA’s Military Transportation University.”

Looks like the Pentagon may have itself to blame for its cyber recruiting troubles. (Federal News Network) “In a recent report, the DoD IG found that filled and unfilled positions were not coded properly. Because of that, DoD was not able to understand where its greatest workforce needs were, and therefore could not properly target its recruitment and retention efforts.”

Navy says Constellation hull change won’t affect internal design. (Breaking Defense) “The Navy has chosen to elongate and widen the hull of its next-generation Constellation-class frigate relative to the parent design… In the early days of the frigate program, Navy officials repeatedly assured Congress that the program’s use of a parent design would reduce risk of delays and cost overruns.”

CNO Gilday wants industry to focus on shipbuilding, readiness not lobbying for aircraft ‘we don’t need.’ (USNI News) “It’s not helpful,” he said of industry pressure pushing Capitol Hill on “what we build, how we build” and timelines… Unmanned systems require [a] different approach in experimentation and learning,” Gilday said. The goal remains closing gaps to maintain overmatch against peer competitors, particularly China.”

Electronic attack system to provide Navy more capabilities, flexible options. (C4ISRNET) “What we see as the future is by having effective electronic attack systems like SEWIP on ships, it’s going to allow the ship’s captain and crew to depend on them and solve the anti-ship threat with non-kinetic solutions, allowing them more missiles than their magazine to shoot for offensive purposes.” SEWIP will be outfitted to DDG-51 destroyers, and Northrop received a contract to develop the system for larger-deck ships.

BAE Systems raises dividend, launches new buyback on strong outlook. (Reuters) “it would hike its dividend to 9.9 pence, 5% up on last year’s interim payout, and would start a 500 million pound ($697 million) share buyback over the next 12 months… Defence has been largely unaffected by the pandemic, with governments sticking to military and security commitments, and in some cases raising them.”

Raytheon, Navy finish SPY-6 testing at Wallops. (Breaking Defense) “As one of the Navy’s premier air and missile defense capabilities, the development of the radars will be critical for not only traditional warships, but potentially unmanned vessels as well… However, analysts question how plausible equipping an LUSV with a SPY-6 radar is due to the increased costs that would stem from requirements for a larger hull form and increased power generation.”

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