November 14 Weekly Defense Industry Roundup

Posted by Fred Wellman

$130B Hit for U.S. Modernization

Marcus Weisgerber and Zachary Fryer-Biggs, Defense News. Defense analysts attending the 2011 Defense Outlook Forum in New York last week are extremely pessimistic that the Super Committee will come up with a compromise to hold off the threatened sequestration and cuts of additional billions from the defense budget. They expect that approximately half of the cuts in the next five years will come from weapon modernization accounts, with another 25% from efficiencies and the other 25% from reductions in force. It’s going to be an interesting few months as this sorts itself out.

U.S. Senators: MDA a Model for Avoiding Counterfeit Parts

Kate Brannen, Defense News. The Senate Armed Services Committee held a relatively marathon meeting last week examining the issue of counterfeit parts making their way into the military supply chain. Their staff has found that most counterfeits are from China, who has done very little if anything to stem the flow. The Missile Defense Agency is held up as a model for fighting this, but the formula is simple. They found that independent distributors of parts were the main source of the problem so now contractors must buy from original manufacturers or certify why they cannot, and agree to testing of any parts purchased before entering the supply chain. It’s possible this could lead to legislation soon due to the risks associated with not just failure of fake parts but possible intelligence and other vulnerabilities they pose.

General Dynamics to Acquire Force Protection for $360 million

Tucker Echols, Washington Business Journal. GD announced last week the purchase of Force Protection which builds up-armored wheeled vehicles such as the Buffalo, Cougar and Ocelot, which are variations of the MRAP concept of V-shaped hulls and heavy protection for troops.  This is another example of the mergers and consolidations in the defense industry that many have been predicting for about a year, that is now starting to roll along with gathering speed.

More veterans, disabled or not, finding jobs in U.S. agencies

Joe Davidson, The Federal Diary, Washington Post. At a meeting of the Chief Human Capital Officers Council last week Deputy Associate Director of the Office of Personnel Management, Joseph Kennedy, announced that the federal government has been making steady progress in its hiring of veterans. On average 26% of executive branch employees are veterans today and just 8% of federal agencies will miss their expanded veteran hiring goals this fiscal year, while 13% will miss their disabled veteran goals. Overall it’s not bad improvement.

The Week Ahead


Dubai Airshow (13-17 November, Dubai Airport Expo Centre, Dubai, UAE) The semi-annual Dubai Airshow is the premier aerospace trade event in the Middle East now in its 11th iteration.  Organizers expect over 55,000 attendees and 1,000 exhibitors this year.  The show opened Sunday with an announcement from Boeing and Emirates Airlines of a 50 unit buy of the 777-300ER at $26 billion making the largest single sale in Boeing’s history. 

Congress:   The full Congress is in session this week.

Senate Armed Services Committee-Hearing (9:30, Tues, 15 November) Full committee hearing on security issues relating to Iraq. Witnesses: Defense Secretary Leon Panetta; Army Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff; Brett McGurk, international affairs fellow at the Council on Foreign Relations; Douglas Ollivant, senior national security fellow in the New America Foundation’s National Security Studies Program; and Kenneth Pollack, director of the Brookings Institution’s Saban Center for Middle East Policy Location: 216 Hart Senate Office Building

Senate Homeland Security and Governmental Affairs Committee-Hearing (9:00, Wed, 16 November) Full committee hearing on “Weeding out Bad Contractors: Does the Government Have the Right Tools?” Witnesses: Daniel Gordon, administrator for federal procurement policy in the Office of Management and Budget; William Woods, director of acquisition and sourcing management at the Government Accountability Office; David Sims, chairman of the Interagency Suspension and Debarment Committee; Allison Lerner, inspector general of the National Science Foundation; and Steven Shaw, deputy general counsel for contractor responsibility for the Department of the Air Force Location: 342 Dirksen Senate Office Building

Senate Commerce, Science and Transportation Committee-Hearing (2:30, Thurs, 17 November) Science and Space Subcommittee hearing on “NASA’s Human Space Exploration: Direction, Strategy and Progress.” Witnesses: TBA Location: 253 Russell Senate Office Building House Veterans Affairs Committee – Hearing (10:00, Tues, 15 November) Full committee hearing on “Potential Budgetary Savings Within VA: Recommendations from Veterans’ Service Organizations.” Witnesses: Joseph Violante, national legislative director of Disabled American Veterans; Carl Blake, national legislative director of Paralyzed Veterans of America; Ian de Planque, deputy director of the American Legion’s Veterans Affairs and Rehabilitation Commission; Raymond Kelley, director of the Veterans of Foreign Wars of the United States’ National Legislative Service; Diane Zumatto, national legislative director of AMVETS; Todd Grams, executive in charge in the VA Office of Management and Chief Financial Officer; Diana Rubens, associate deputy VA undersecretary for field operations in the Veterans Benefits Administration; William Schoenhard, deputy VA undersecretary for health operations and management at the Veterans Health Administration; Belinda Finn, assistant inspector general for audits and evaluations in the VA Office of Inspector General; Linda Halliday, deputy assistant inspector general for audits and evaluations in the VA Office of Inspector General; and Sondra McCauley, deputy assistant inspector general for audits and evaluations in the VA Office of Inspector General Location: 334 Cannon House Office Building

House Homeland Security Committee – Hearing (10:00, Tues, 15 November) Border and Maritime Security Subcommittee hearing on “Protecting the Homeland: How can Homeland Security use Defense Department Technology to Secure the Border?” Witnesses Mark Borkowski, assistant commissioner of U.S. Customs and Border Protection’s Office of Technology Innovation and Acquisition; Paul Benda, chief of staff for science and technology and director of the Homeland Security Advanced Research Projects Agency; and Assistant Defense Secretary for Homeland Defense and America’s Security Affairs Paul Stockton Location: 311 Cannon House Office Building

House Science, Space and Technology Committee – Hearing (10:00, Tues, 15 November) Space and Aeronautics Subcommittee hearing on “Exploring Mars and Beyond: What’s Next for U.S. Planetary Science?” Witnesses Jim Green, Planetary Science Division director on the National Aeronautics and Space Administration’s Science Mission Directorate; and Steve Squyres, chair of the National Academies of Science’s Committee on the Planetary Science Decadal Survey Location: 2318 Rayburn House Office Building

House Judiciary Committee – Hearing (10:00, Tues, 15 November) Crime, Terrorism and Homeland Security Subcommittee hearing on “Cyber Security: Protecting America’s New Frontier.” Witnesses: Former Homeland Security Secretary Michael Chertoff, co-founder and managing principal of the Chertoff Group; Richard Downing, deputy section chief for computer crime and intellectual property at the Justice Department; James Barker, lecturer on law at Harvard University; and Orin Kerr, professor of law at George Washington University Location: 2141 Rayburn House Office Building                                                      

House Oversight and Government Reform Committee – Hearing (10:00, Tues, 15 November) National Security, Homeland Defense and Foreign Operations Subcommittee hearing on “Progress of the Obama Administration’s Policy Toward Iran.” Witnesses: Deputy Defense Secretary Ashton Carter; Deputy Secretary of State William Burns; Deputy Treasury Secretary Neal Wolin; Mark Dubowitz, executive director of the Foundation for Defense of Democracies; and Kenneth Pollack, director of the Brookings Institution’s Saba Center for Middle East Policy Location: 2247 Rayburn House Office Building

House Armed Service Committee – Hearing (2:00, Weds, 16 November) Tactical Air and Land Forces Subcommittee hearing on “U.S. Marine Corps Acquisition and Modernization.” Witnesses: William Taylor, program executive officer land systems, U.S. Marine Corps; Brig. Gen. Frank Kelley, commander of the Marine Corps Systems Command; and Brig. Gen. Daniel O’Donohue, director of the Capabilities Development Directorate, Combat Development & Integration Location: 2118 Rayburn House Office Building

House Armed Services Committee – Hearing (8:00, Thurs, 17 November) Defense Financial Management and Audibility Reform Panel Subcommittee hearing on “Industry Perspectives on Achieving Audit Readiness.” Witnesses:  JoAnn Boutelle, partner at Deloitte and Touche LLP; Tracy Porter. partner at Grant Thornton LLP; and Mark Keeley, partner at PricewaterhouseCoopers LLP Location: 2212 Rayburn House Office Building

House Homeland Security Committee – Hearing (10:00, Thurs, 17 November) Cybersecurity, Infrastructure Protection, and Security Technologies Subcommittee hearing on “Finding Smarter Approaches to Spur Innovation, Impose Discipline, Drive Job Creation and Strengthen Homeland Security.” Witnesses:  Homeland Security Undersecretary Tara O’Toole of the Science and Technology Directorate; and David Maurer, director of homeland security and justice issues at the Government Accountability Office Location: 311 Cannon House Office Building

House Armed Services Committee – Hearing (9:00, Fri, 18 November) Business Challenges within the Defense Industry Subcommittee hearing on “Creating a 21st Century Defense Industry.” Witnesses:  TBA Location: 2118 Rayburn House Office Building

Think tanks and other news events:

Sutherland Global Services- Connecting Veterans to the Private Sector (9:00, Mon, 14 Nov) A symposium on providing gainful employment for veterans and military spouses. Participants:  Col. David Sutherland, Special Assistant to the Chairman of the Joint Chiefs, Warrior and Family Support and others Location: Capital Hilton, 1001 16th St. NW, Washington D.C.

CSIS- Military Strategy Forum- The National Guard: Security America Can Afford (9:00, Fri, 18 November) The chiefs of the National Guard Bureau, Air and Army National Guard all gather to discuss the merits of their organizations Participants:  Gen. Craig McKinley, Chief, National Guard Bureau; Lt. Gen. Henry Wyatt III, Director, Air National Guard; Maj. Gen. Raymond Carpenter, Acting Director, Army National Guard. Location: Center for Strategic and International Studies, 1800 K Street, NW, Washington DC, 20006

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, November 14, 2011 7:22 am

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