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January 30 Weekly Defense Industry Roundup

Posted by Fred Wellman

Major Changes in Store for the Ground Forces in New Defense Budget

John Grady, ScoutComms. The Army and Marine Corps force structures look to be major bill payers in the new defense budget plan as outlined by the department’s leadership on Thursday. The Army will drop down to 490,000 troops and the Marines down to 182,000, and two heavy brigade combat teams will leave Germany to be deactivated. In addition, pay raises will be cut and current retirees will see their insurance premiums rise as future service members see reduced packages vs those serving today. All in all a heavy reliance on the belief you can train new troops faster than build new weapons systems dominates the new plans. The budget outlines from DoD are below.

Narrative (PDF): “Defense Budget Priorities and Choices”  

Fact Sheet (PDF): “Fact Sheet: The Defense Budget”

Pentagon Budget: Top 3 Winners and Losers

Anna Mulrine, The Christian Science Monitor. CSM has a handy little list of the winners and losers in the Thursday budget announcement from the DoD. The Navy leads the list with hardly a scratch to its plans beyond the F-35 slowdown. Special Operations forces came out growing, and Unmanned Aerial Vehicles continue to be the wave of the future, with only the Global Hawk Block 30 getting axed. On the losing side, the Army takes a beating with massive troop cuts, enemy hackers will face greater cyber-security programs, and future troops will face reduced benefits and lower pay raises. It’s a simple list but hits the high points.

JSF Survives, Global Hawk Dies, Global Strike Revives; Panetta’s Budget

Colin Clark, AOL Defense. @ColinClarkAOL has a pretty thorough roll up of the various pieces of the puzzle that got cut or adjusted in the new defense budget documents as a one-stop shop. Not sure if we agree with his assessment that the Navy was the biggest loser in the cuts as most of the cuts were to planned ships and older models on their way to retirement anyway, unlike the 60,000+ troops leaving the Army. 

Lockheed Martin Leads Expanded Lobbying by U.S. Defense Industry

Roxana Tiron and Tony Capaccio, Washington Post (Bloomberg Government). As the battle over budget cuts raged this year, the defense industry has weighed in on their side with a rise in lobbying expenditures in an effort to head off huge cuts to cherished programs. The industry was lead by Lockheed Martin, which spent $15 million last year, representing a 19% increase over the previous year. Others in the industry engaged Congress to avoid cuts to major programs through their own efforts and with the allies such as the Aerospace Industry Association and their “Second to None” campaign. Over all, the trend will likely continue this year as the battle against sequestration and other cuts continues through the election cycle. 

FBI Plans Social Network Map Alert Mash-up Application

BBC. The FBI has issued a Sources Sought notice seeking a social media monitoring and mapping application to tap into public social media channels to detect global threats and apply those to maps in what is known as a “mash-up” application that has become increasingly common. For now it is simply a request for industry to provide documents measuring the ability of industry to meet their ideas, but these requests are often followed by a Request for Proposals down the road. These sorts of programs are being used by other federal agencies already, most notably by Homeland Security and FEMA to support disaster response efforts. They were widely hailed as hugely successful during the Haiti relief operations.

The week ahead:

Themes:  The budget first look was out late Thursday so now the dissection of the plan begins this week. Congress is back in full force with a huge plate of hearings and the defense budget will be a topic of discussion throughout, especially as the intelligence chiefs give their world reports to both intelligence committees this week. Expect a lot of folks looking for gaps between what the intel community sees as the major threats and what DoD is planning for its strategy. 

Tradeshows:

Maritime Security and Surveillance: (Sun-Tues, 29-31 Jan) Abu Dhabi, UAE. This is the first Maritime Security & Surveillance conference and plans to be a high-profile conference designed to address the Middle East region’s most pressing issues around developing strategies to maximize coastal security, combat piracy and other crimes at sea, enhance Maritime Domain Awareness (MDA), and improve port security, by driving multilateral cooperation and capability building based procurement.

IDGA’s 7th Annual CBRNe Defense Conference: (30 Jan-1 Feb) Hilton Alexandria Mark Center, Alexandria, VA. This conference aims to bring together government, military and industry leaders who have the unenviable task of preparing for and preventing chemical, biological and nuclear attacks. Discussions will focus on the latest in detection technologies, reactive measures, and the importance of inter-agency cooperation at the federal, state and local levels.

Marine West:  (Wed-Thurs, 1-2 Feb) Marine Corps Base Camp Pendleton, CA. Marine West is the first of the trilogy of Marine focused expos that includes Marine South at Camp Lejeune in April, and Modern Day Marine at Quantico in September. Delegations from Marine commands throughout the west coast attend this officially sanctioned event with about 185 exhibitors expected at this year’s show.

Congress:   The full Congress is in session this week.

Senate (Select) Intelligence Committee – Hearing (10:00 AM, Tues, 31 January) Full committee hearing on “World Wide Threats.” Witnesses: Director of National Intelligence James Clapper; CIA Director David Petraeus; FBI Director Robert Mueller; Defense Intelligence Agency Director Lt. Gen. Ronald Burgess; National Counterterrorism Center Director Matthew Olsen; Assistant Secretary of State for Intelligence and Research Philip Goldberg; and Homeland Security Undersecretary for Intelligence and Analysis Caryn Wagner, testify Location: 216 Hart Senate Office Building

House Veterans Affairs Committee – Hearing (10:00 AM, Wed, 1 February) Full committee hearing on “Examining VA’s Pharmaceutical Prime Vendor Contract.” Witnesses: TBD Location: 334 Cannon House Office Building

House Armed Services Committee – Hearing (10:00 AM, Wed, 1 February) Full committee hearing on “The Use of Afghan Nationals to Provide Security to U.S. Forces; The Attack on U.S. Personnel at Forward Operating Base Frontenac, Afghanistan, in March 2011.” Witnesses: Deputy Assistant Defense Secretary for Afghanistan, Pakistan and Central Asia David Sedney; Deputy Assistant Defense Secretary for Program Support Acquisition, Technology and Logistics Gary Motsek; Army Brig. Gen. Stephen Townsend, director of the Pakistan/Afghanistan Coordination Cell, Joint Chiefs of Staff; and Army Brig. Gen. Kenneth Dahl, deputy commanding general for support, 10th Mountain Division, Fort Drum, N.Y., testify Location: 2118 Rayburn House Office Building

House Veterans Affairs Committee – Hearing (10:00 AM, Thurs, 2 February) Economic Opportunity Subcommittee hearing on “Lowering the Rate of Unemployment for the National Guard.” Witnesses: TBD Location: 334 Cannon House Office Building

House (Select) Intelligence Committee – Hearing (10:00 AM, Thurs, 2 February) Full committee hearing on “Worldwide Threats Facing the U.S.” Witnesses: Director of National Intelligence James Clapper; CIA Director David Petraeus; Defense Intelligence Agency Director Ronald Burgess; and FBI Director Robert Mueller, testify Location: HVC-210, U.S. Capitol

House Homeland Security Committee – Hearing (10:00 AM, Fri, 3 February) Oversight, Investigations, and Management Subcommittee hearing on “Is DHS (Homeland Security Department) Effectively Implementing a Strategy to Counter Emerging Threats?” Witnesses: Paul Schneider, principal of The Chertoff Group; Shawn Reese, analyst in emergency management and homeland security policy at the Congressional Research Service; and David Maurer, director of the Government Accountability Office’s Homeland Security and Justice Team; and Deputy Assistant Homeland Security Secretary Alan Cohn, testify Location: 311 Cannon House Office Building

House Armed Services Committee – Hearing (11:30 AM, Fri, 3 February) Military Personnel Subcommittee and Oversight and Investigations Subcommittee joint hearing on “Update on Accountability at Arlington National Cemetery.” Witnesses: Lt. Gen. Peter Vangjel, inspector general of the Office of the Secretary of the Army; Kathryn Condon, executive director of Arlington National Cemetery; Belva Martin, director of acquisition and sourcing management at the Government Accountability Office; and Brian Lepore, director of defense capabilities and management at the Government Accountability Office, testify Location: 2118 Rayburn House Office Building

Think tanks and other news events:  None to recommend this week

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, January 30, 2012 8:21 am

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