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February 13 Weekly Defense Industry Roundup

Posted by Fred Wellman

Exclusive: Pentagon Budget Eyes $178.8 Billion for R&D, Procurement

Andrea Shalal-Esa, Reuters. Copies of the 2013 defense budget started getting to the press over the weekend and the early reports have a 7.5% drop in the procurement budget and an overall 12.2% drop from last year’s budget with the drop in war funding. Generally aircraft and ship programs fared well while cuts in the medium family of vehicles for the Army went down substantially, and the Humvee upgrade program was killed in favor of the JLTV.

San Antonio Firm Barred from Fed Contracts

Sig Christenson and Patrick Danner, San Antonio Express. The Booz Allen Hamilton office in San Antonio, Texas has found itself in hot water with the Air Force when it was found a recently retired Air Force Lt. Colonel brought an external hard drive full of proprietary pricing data on a contract with him to the firm. That data was intended to help BAH win the contract with Air Force health systems before it was identified as illegal and stopped. The retired officer and four of his colleagues are now barred from working with the government as well as the defense services’ firm in town. There are a lot of lessons here on how to ethically pursue a contract and important things that will probably be in company orientation briefs from now on.

Risks of Afghan War Shift from Soldiers to Contractors

Rod Nordland, New York Times. For the first time more contractors died in Afghanistan last year than military service members. That reflects the growing role of contract personnel in taking increasing responsibilities from the military to do many tasks in theater. Many jobs weren’t the expected convoy escorts, but logistical jobs and food service that saw civilians taking casualties just like service men and women. Tragically most do not get recognition for their sacrifice, medical support needed or lifetime care as promised by the Defense Base Act. 

Ford Pulls Out of JLTC Competition

Michael Hoffman, DoD Buzz. Ford motor company and its partners have decided not to participate in the pursuit of the Joint Light Tactical Vehicle competition after working on a proposed vehicle for several months. The RFP leaves the timeline almost impossible for Ford and its partners with Raytheon and Future Force to meet, or produce a workable vehicle. 

US Army Chooses its Two CIRCM Contractors

Optics.org. In a major electronic systems contract decision, the Army selected BAE Systems and Northrop Grumman for the Technology Development phase of the Common Infrared Countermeasure (CIRCM) program that will provide counter-missile technology for Army helicopters. Competitors had included ITT Exelis, Lockheed Martin and Raytheon. Northrop stands to get $31.4 million for this phase and BAE stated their portion at $38 million.

Army to Open Six Jobs, Combat Battalion Staff Positions to Women

Gary Sheftick, Army News Service. The Department of Defense announced on Thursday the first major changes to the numbers of positions open to women in over a decade, after a study recognized that more positions can be filled by the growing number of female service members.  For the Army six specific MOS’s, or job skills, will now be open to women, including combat vehicle maintainer positions and artillery crewmembers jobs. In addition, thousands of positions at combat battalion level will now be available to women who traditionally could not be assigned below brigade level. The policy will go into effect by summer and will affect over 13,000 jobs.

The week ahead:

Themes:  The budget hits the street Monday morning with hearings to follow.  Expect it to be all-budget-all-the-time this week. 

Tradeshows:  No significant conferences or tradeshows of note

Congress:   The full Congress is in session this week.

Senate Armed Services Committee – Hearing (9:30 AM, Tues, 14 February)

Full committee hearing on the Defense Authorization Request for FY2013 and the Future Years Defense Program. Witnesses: Defense Secretary Leon Panetta and Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey testify Location: G-50 Dirksen Senate Office Building

Senate Armed Services Committee – Hearing (9:30 AM, Thurs, 16 February)

Full committee hearing on the current and future worldwide threats to the national security of the United States. Witnesses: Director of National Intelligence James Clapper; and Defense Intelligence Agency Lt. Gen. Director Ronald Burgess testify Location: G-50 Dirksen Senate Office Building

Senate Homeland Security and Governmental Affairs Committee – Hearing (2:30 PM, Thurs, 16 February) Full committee hearing on “Securing America’s Future: The Cybersecurity Act of 2012.” Witnesses: Homeland Security Secretary Janet Napolitano testifies Location: 342 Dirksen Senate Office Building

House Armed Services Committee – Hearing (10:00 AM, Weds, 15 February)

Full committee hearing on the FY2013 National Defense Authorization budget request from the Defense Department. Witnesses: Defense Secretary Leon Panetta; and Chairman of the Joint Chiefs of Staff Army Gen. Martin Dempsey testify Location: 2118 Rayburn House Office Building

House Veterans Affairs Committee – Hearing (10:00 AM, Weds, 15 February)

Full committee hearing on “The Veterans Affairs Budget Request for FY2013.” Witnesses: TBD Location: 334 Cannon House Office Building

House Homeland Security Committee – Hearing (10:00 AM, Thurs, 16 February)

Counterterrorism and Intelligence Subcommittee hearing on “Homeland Security Department Monitoring of Social Networking and Media: Enhancing Intelligence Gathering and Ensuring Privacy.” Witnesses: Mary Ellen Callahan, chief privacy officer of the Homeland Security Department; and Richard Chavez, director of the Homeland Security Office of Operations Coordination and Planning, testify Location: 311 Cannon House Office Building

House Appropriations Committee – Hearing (10:00 AM, Thurs, 16 February)

Military Construction, Veterans Affairs, and Related Agencies Subcommittee hearing on “Quality of Life in the Military.” Witnesses: Chief Master Sergeant of the Air Force James Roy; Sergeant Major of the Army Raymond Chandler III; Sergeant Major of the Marine Corps Micheal Barrett; and Master Chief Petty Officer of the Navy Rick West testify Location: 2358-A Rayburn House Office Building

House Appropriations Committee – Hearing (10:00 AM, Thurs, 16 February)

Defense Subcommittee hearing on the budget for the Department of Defense Witnesses: Defense Secretary Leon Panetta; Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey; Defense Undersecretary/Comptroller Robert Hale, testify Location: 2359 Rayburn House Office Building

House Armed Services Committee – Hearing (1:00 PM, Thurs, 16 February)

Full committee hearing on FY2013 National Defense Authorization budget request from the Department of the Navy. Witnesses: Navy Secretary Ray Mabus; Navy Adm. Jonathan Greenert, chief of naval operations; and Marine Corps Commandant Gen. James Amos testify Location: 2118 Rayburn House Office Building

House Oversight and Government Reform Committee – Hearing (9:30 AM, Fri, 17 February)

Technology, Information Policy, Intergovernmental Relations and Procurement Reform Subcommittee hearing on “How Much is Too Much? Examining Duplicative IT Investments at DOD (Defense Department) and DOE (Energy Department)?” Witnesses: TBD Location: 2154 Rayburn House Office Building

House Armed Services Committee – Hearing (10:00 AM, Fri, 17 February)

Full committee hearing on FY2013 National Defense Authorization budget request from the Department of the Army. Witnesses: Army Secretary John McHugh; and Army Chief of Staff Gen. Raymond Odierno testify Location: 2118 Rayburn House Office Building

Think tanks and other news events: 

Center for Strategic and International Studies – Maritime Security: Confronting New and Non-Traditional Challenges in the Age of Austerity (9:00 AM, Mon, 13 February) Description: Even as a difficult fiscal environment has increasingly tightened federal budgets, maritime security forces are faced with an array of new and non-traditional challenges. These range from countering terrorism and piracy to combating drug and human trafficking, while simultaneously preparing for greater competition in new theaters such as the Arctic. Although budget reductions will bring with them painful sacrifices, those responsible for the nation’s maritime security have an opportunity to work together to set priorities, define roles and responsibilities, and identify best practices in order to minimize the effects of these cuts and position themselves to meet the most critical missions. Participants:  Keynote Address by Admiral Robert Papp, Jr., Commandant, U.S. Coast Guard.  Panels include civilian and Coast Guard leaders discussing the challenges ahead. Location: CSIS B1 Conference Center, CSIS 1800 K. St. NW, Washington, DC 20006

Hudson Institute – Recent Developments in Cyberwarfare (12:00 PM, Mon, 13 February)

Description: Former Vice Chairman of the Joint Chiefs, Gen. (Retire) James Cartwright discusses the latest approaches to cyberwarfare. Participants:  Gen. (R) James Cartwright is currently the Harold Brown Chair in Defense Policy Studies at CSIS. Location: Hudson Institute, Inc. 1015 15th Street, N.W. 6th Floor Washington, DC 20005

Fred Wellman with General Petraeus in Iraq

Fred Wellman, President ScoutComms, brings us his weekly review of defense industry news via The Scout Report. Fred served over twenty years as an Army officer in both aviation and public affairs. You can follow Fred on Twitter @ScoutComms.

This entry was posted on Monday, February 13, 2012 8:51 am

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