Acquisition headlines (2/14 – 2/20/2021)

Building the future US navy surface force. (Naval News) I think the chart below was the most interesting part:

ICS Integrated Combat System

US Army’s delayed battle command system begins operational testing. (Defense News) “The Northrop Grumman-developed IBCS, which has cost the Army roughly $2.7 billion in development funding, is intended to link sensors and shooters across the battlefield… IOT&E was pushed from September 2021 to January 2022 due to “deficiencies in some critical capabilities identified during software testing.”… The delay ultimately will not “adversely” affect the schedule for the test, according to the program office, and “we anticipate completion of IOT&E, declaration of Initial Operational Capability (IOC), and Full Rate Production well within the established Acquisition Program Baseline dates.””

DoD accelerates AI capabilities with $249 million blanket purchase agreement. (Clearance Jobs) “DoD announced that it had selected Denver, CO-based Veritone – creator of the aiWare, a hyper-expansive AI platform – as an AI partner in a $249 million Blanket Purchase Agreement (BPA). Under the terms of the agreement, the JAIC will be able to leverage the Veritone aiWARE platform and key applications for Test & Evaluation (T&E) capabilities.”

Tucson-based Raytheon unit target of federal probe into contract pricing. (Tucson) “Raytheon Technologies Corp. has set aside $290 million to cover potential expenses of a federal criminal investigation into cost irregularities on past Pentagon contracts… The probe involves multiyear contracts and includes potential civil “defective pricing” claims for three contracts entered into between 2011 and 2013.”

NASA officials reportedly horrified that spaceX’s starship may succeed. (Futurism) “Politico characterized [Starship] as inspiring a “mix of awe and horror” at NASA and its more traditional aerospace contractors… the $2 billion-per-launch price tag that accompanies SLS’ three slated Artemis moon landing missions make it much less attractive in comparison to Starship, which Musk recently bragged could cost as little as $1 million per launch.”

US Navy christens first snakehead LDUUV prototype. (Naval News) That’s for Large Displacement Unmanned Undersea Vehicle (LDUUV). “It is equipped with a government-owned architecture, mission autonomy capabilities and vehicle software, employing innovation in the areas of hull materials and lithium-ion battery certification. Deployed from a submarine dry deck shelter, Snakehead provides guidance and control, navigation, situational awareness, propulsion, maneuvering and sensors in support of undersea missions…. General Atomics Electromagnetic Systems (GA-EMS) won a contract award to develop and demonstrate a prototype Lithium-ion Fault Tolerant LiFT battery system for the LDUUV prototype.

State of competition in the defense industrial base. (DoD) “Since the 1990s, the defense sector has consolidated substantially, transitioning from 51 to 5 aerospace and defense prime contractors,” the report states… 90% of missiles now come from just three sources, the report says…. The report highlights the challenges to planning for and securing the intellectual property rights and data needed to promote competition over the long term.”

The problems with the defense-industrial base aren’t about the contractors. (Defense News) David Berteau: “Innovation matters, but companies can afford R&D costs only if there is a return on that investment. For commercial companies, risk is rewarded by possible returns, but government contracting limits returns, making the risk-return ratio too high. The financial system funds innovation but demands returns. If contractors cannot produce them, funding will move to alternate investments. DoD policies and practices need dramatic adjustment to accommodate this reality.”

Amentum closes $1.9 billion acquisition of PAE. (Defense News) “Amentum was the 23rd-largest defense firm in 2021, according to Defense News’ Top 100 rankings, while PAE was 80th. Both firms are services contractors… consolidation among services contractors have typically been viewed differently by the government because there are more competitors and the barriers for entry are lower… In November 2020, Amentum acquired competitor DynCorp International, moving it from 46th on the Top 100 list in 2020 up to 23rd in 2021.”

China’s new naval mystery: mini zumwalt stealth vessel. (Naval News) “Images have surfaced on Chinese Social Media, subsequently shared on Twitter, which appear to show a new naval vessel. The blurred outline of a boat, resembling the U.S. Navy’s Zumwalt Class destroyer, is silhouetted in the haze… it may be an iterative improvement on the earlier trimaran ‘Sea Hunter’ USV prototype.

Video: first new navy hovercrafts deliver to fleet unit after delays, cost increases. (USNI News) “The Navy had originally planned for the first two LCAC 100s to deliver by the fall of 2018, but the program suffered developmental delays in part due to difficulties around the new propulsion system that used a more powerful engine and composite drivetrain to power the two massive fans that propel the LCACs… The costs rose from $53.7 million in Fiscal Year 2011 dollars per craft – a figure that included research and development costs – to $63.7 million in FY ’11, prompting the notification.”

Israel plans ‘laser wall,’ but questions remain about effectiveness and cost. (Defense News) “Israel plans to create a “laser wall” that would see the country shift from investing large sums in interceptor missiles to using electric-based lasers that are less costly… “[With the] Nautilus laser, it took between 2-3 seconds to kill a Grad-like rocket,” said Rubin, referring to a type of rocket often used by militants in Gaza and Lebanon… [but] Hamas increased its rocket fire rate from previous wars, firing up to 125 rockets in salvos over several minutes. “With Iron Dome, you fire your rockets and you fire two per second — and each Iron Dome is already locked on target, it is working in parallel. So they fire 20, and [we can] target 20, while a laser has to target each one individually,” he noted.”… However, the executive pointed out that the cost of using a laser might be 10% that of using a missile interceptor.”

Israelies, Singapore build, sell surface to surface missile in one year. (Breaking Defense) “The Blue Spear is a subsonic air breathing, sea-skimming missile able to be fired either from land or from a ship, with a range of 180 miles. The missile can be launched using a standard launcher that can be fitted either to a ship or to a truck… the joint venture is already generating “tens of millions” of dollars in revenue, with eyes on more customers to come… they’re talking with governments in Latin America, Europe, and Asia.”

Artificial intelligence. (GAO) “We found that DOD’s efforts to acquire AI come with some challenges that DOD usually faces, such as DOD’s long acquisition processes and shortages of skilled staff, as well as AI-specific challenges like having enough usable data to train the AI. For example, AI for detecting an adversary’s submarines requires gathering many images of various submarines and labeling them so the AI can learn to identify one on its own.”

After mix-up, Army says 12 programs may be hit by year-long CR. (Breaking Defense) “Since last year, the service has boasted that 24 of its 35 signature modernization programs would be in the hands of soldiers, either in prototyping or fielded, by fiscal 2023. Last month Army Vice Chief of Staff Gen. Joseph Martin told the House Appropriations Committee that a potential year-long continuing resolution would impact 19 of those 24 programs, as well as delay 71 new start programs…. Upon a request for clarification, the Army investigated and eventually revised the number to 12.”

Russian hackers raided defense contractors for two years, stole sensitive info. (Breaking Defense) ““The acquired information provides significant insight into U.S. weapons platforms development and deployment timelines, vehicle specifications, and plans for communications infrastructure and information technology,” the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency said in an alert posted online.”

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