September 10 Defense Industry Weekly Roundup

Posted by Fred Wellman

U.S. Arms Buyer Foresees More Program Terminations

Jim Wolf and David Alexander, Reuters. As the battle to avert the precipitous cuts to the defense budget continues, many in the industry and inside the Pentagon are preparing for cuts no matter what happens. It is clear that major cuts are inevitable no matter what form they take. Currently the argument is that sequestration is not bad because of its size but because of its design as an across the board 11% slice with little room for finesse or choice as every aspect of DoD takes a hit from the axe. More precise and surgical cuts will like result even if the sequester battle is won and right in the cross hairs will be weapons and equipment programs in development that military needs such as JLTV, F-35 and others.

Pirate Attacks Down as Private Maritime Security Business Booms

Dan Harris and Dan Lieberman, ABC News. Shipping companies are now spending close to $1 billion a year on armed security contractors to protect their vessels from pirates operation from Somalia. This boom in business has not been without controversy though much of it seems a bit overblown considering the pirates have shown their willingness to kill hostages and fire indiscriminately against ships. To date not a single ship has been taken by pirates with armed guards on board and the number of attempts is falling steadily. While many seem to want to portray the guards as armed cowboys, a la Blackwater, the facts are very different than the streets of Baghdad. A speedboat approaching a ship armed with machine guns and RPG’s is a real threat with no innocent bystanders in the area.

Navistar Withdraws JLTV Protest

Paul McLeary, Army Times. In a surprise move on Tuesday, Navistar announced they were withdrawing their protest of the Joint Light Tactical Vehicle Engineering, Manufacturing and Development contract that went to competitors Lockheed Martin, AM General and Oshkosh Defense. A company spokesman explained that they filed the protest to ensure they met a deadline to do so with the government but after further review decided to cancel the complaint. The other losing bidders including BAE Systems have not stated any plans to protest the award or whether they will continue to develop and test their vehicles on their own and compete for the final award. Either way this clears the JLTV program to move into its next phase as each selectee builds 22 vehicles for Army testing.

Lockheed’s Fight Over President’s Copter Shapes Defense-Cut Tack

Tony Capaccio, Bloomberg/Washington Post. Lockheed Martin got in trouble when the presidential helicopter replacement program was cut to notify their workers according to federal regulations in 2009. Now they are being careful to not make the same mistake again. So, while they still face a fight to settle claims from that time and the cancellation, they are also fighting the administration on the requirement to notify workers in case of sequestration cuts that could kick in on January 2nd. The government claims they don’t need to do so since no specific cuts have been made yet, but Lockheed won’t take any chances. It’s an interesting loggerheads with political accusations being made by all sides.

The week ahead:

Tradeshows and Conferences: 

National Guard Association of the United States NGAUS 2012 Annual Conference, Reno, NV (Sun-Weds, 9-12 Sep) The National Guard Association boasts some 45,000 members and its annual conference draws all of the top leaders in the Guard from across the country.  This year they will be joined by presidential candidate Mitt Romney among many other senior leaders of the military and DoD.

NDIA 17th Annual Expeditionary Warfare Conference, Panama City Beach, FL (Mon-Weds, 10-13 Sep) NDIA’s Expeditionary Warfare conference is pretty well regarded and attended usually as a venue exclusively focused on connecting the Marine Corps with the industry that supports them.  With the new Amphibious Combat Vehicle competition getting ready to open and other issues on the Marines plate this should be an opportunity to talk about the challenges and needs.

American Institute of Aeronautics and Astronautics AIAA SPACE 2012 Conference and Expo, Pasadena, CA (Tues-Thurs, 11-13 Sep) The AIAA SPACE 2012 Conference is AIAA’s premier event on space technology, policy, programs, management, and education. Nowhere else will you get the depth and breadth of sessions and information-sharing on space systems and technology. It’s well regarded and often includes newsworthy announcements from industry and government.

NDIA MOAA/NDIA Warrior-Family Symposium, Ronald Reagan Building, Washington, DC (Thurs, 13 Sep) This annual conference focuses exclusively on the challenges and long-term issues facing wounded warriors and their families. The 2012 Warrior-Family Symposium (WFS), co-sponsored by the Military Officers Association of America (MOAA) and the National Defense Industrial Association (NDIA), will provide a forum for expanding on the collective efforts of government and non-government organizations, over the last decade, to improve the physical, psychological and overall well-being of wounded warriors and their families.

Next week’s big event:  The Air Force Association Annual Air and Space Technology Expo and Conference at National Harbor, Maryland

Congress:   The full Congress is in session this week.


Daily Schedule (2:15PM, Tues, 11 Sept) The Senate will proceed to a vote on the motion to invoke cloture on the motion to proceed to S.3457, the “Veterans Jobs Corps Act of 2012.” Location: Senate Chamber

Senate Veterans’ Affairs Committee – Markup (10:00 AM, Wed, 12 Sept) Location:  418 Russell Senate Office Building

House of Representatives: 

House Armed Services Committee – Hearing (10:00 AM, Tues, 11 Sept) Full committee hearing on a framework for building partner capacity programs and authorities to meet 21st Century challenges. Witnesses:  Assistant Defense Secretary for Special Operations and Low Intensity Conflict Michael Sheehan; Army Lt. Gen. Terry Wolff, director for strategic plans and policy (J5), Joint Staff; and Janet St. Laurent, managing director of the Defense Capabilities and Management Team at the Government Accountability Office, testify Location: 2118 Rayburn House Office Building

House Oversight and Government Reform Committee – Hearing (9:45 AM, Weds, 12 Sept) National Security, Homeland Defense and Foreign Operations Subcommittee hearing on “Dawood National Military Hospital, Afghanistan: What Happened and What Went Wrong?” Witnesses:  TBD Location: 2154 Rayburn House Office Building

House Armed Services Committee – Hearing (10:00 AM, Weds, 12 Sept) Full committee hearing on “Operational Contracting Support: Learning from the Past and Preparing for the Future.” Witnesses:  Assistant Defense Secretary for Logistics and Materiel Readiness Alan Estevez; Marine Corps Brig. Gen. Craig Crenshaw, vice director (J-4), Joint Staff; Moshe Schwartz, specialist in defense acquisition at the Congressional Research Service; and Tim DiNapoli, acting director for acquisitions and sourcing at the Government Accountability Office, testify Location: 2118 Rayburn House Office Building

House Armed Services Committee – Hearing (10:00 AM, Thurs, 13 Sept) Tactical Air and Land Forces Subcommittee hearing on F-22 pilot physiological issues. Witnesses: Retired Air Force Gen. Gregory Martin, Aircraft Oxygen Generation Study chair USAF Scientific Advisory Board; Air Force Maj. Gen. Charles Lyon, director of operations, Headquarters Air Combat Command; and Clinton Cragg, principal engineer at the National Aeronautics and Space Administration Engineering and Safety Center, testify Location: 2118 Rayburn House Office Building

House Armed Services Committee – Hearing (11:30 AM, Thurs, 13 Sept) Military Personnel Subcommittee hearing on the Federal Voting Assistance Program. Witnesses: Pamela Mitchell, acting director of the Federal Voting Assistance Program testifies Location:  2212 Rayburn House Office Building

House Armed Services Committee – Hearing (2:00 PM, Thurs, 13 Sept) Strategic Forces Subcommittee hearing on “Y-12 Intrusion: Investigation, Response, and Accountability.” Witnesses:  Deputy Energy Secretary Daniel Poneman; and Neile Miller, principal deputy administrator of the National Nuclear Security Administration, testify Location: 2218 Rayburn House Office Building

House Armed Services Committee – Hearing (9:00 AM, Fri, 14 Sept) Oversight and Investigations Subcommittee hearing on Defense Department Auditability Challenges. Witnesses:  Elizabeth McGrath, deputy chief management officer at the Defense Department; Defense Undersecretary/Comptroller Robert Hale; Gladys Commons, assistant secretary of the Navy for financial management and comptroller; Mary Sally Matiella, assistant secretary of the Army for financial management and comptroller; and Marilyn Thomas, deputy assistance secretary of the Air Force for financial management and comptroller, testify Location: 2118 Rayburn House Office Building

House Veterans’ Affairs Committee – Hearing (9:30 AM, Fri, 14 Sept) Health Subcommittee hearing on “VA Fee Basis Care: Flawed Policies not a Fix for a Flawed System.” Witnesses: TBD Location:  334 Cannon House Office Building

House Veterans’ Affairs Committee – Hearing (9:30 AM, Fri, 14 Sept) Health Subcommittee hearing on “VA Fee Basis Care: Flawed Policies not a Fix for a Flawed System.” Witnesses: TBD Location:  334 Cannon House Office Building

House Financial Services Committee – Hearing (9:30 AM, Fri, 14 Sept) Insurance, Housing and Community Opportunity Subcommittee hearing on “Housing for Heroes: Examining How Federal Programs Can Better Serve Veterans.” Witnesses: TBD Location:  2128 Rayburn House Office Building

Think tanks and other news events: 

Brookings Institution U.S. Defense and the 2012 Election, Washington, DC (1:00 PM, Mon 10 Sept) Description: Following the Republican and Democratic national conventions, the fall electoral season kicks into high gear. Among the many issues being debated are those focused on U.S. defense: How would the presidential candidates shape America’s future armed forces? Where do they agree and where do they disagree? Which broader realities, both within their control and beyond it, will affect their decisions on these matters? The event is full. Participants: Peter Singer, Director, 21st Century Defense Initiative, Todd Harrison, Senior Fellow, Center for Strategic and Budgetary Assessments, Marvin Kalb, Guest Scholar, Michael O’Hanlon, Director of Research, Foreign Policy Location: Brookings, 1775 Massachusetts Avenue, NW, Washington, DC 20001

Government Executive Deterrence and Security in Cyberspace Washington, DC (7:30 AM, Thurs 13 Sept) Description: U.S. military and economic power depend heavily on the security of both government and commercial networks, yet those networks grow increasingly vulnerable to espionage and attack. Our panel will discuss the military’s evolving role in cybersecurity, particularly as a deterrent force, as well as the need for a shared framework — both national and international — to address the legal and regulatory challenges of protecting vital networks. Participants: Martin Libicki, Senior Management Scientist, RAND Corporation, Vincent Manzo, Research Assistant, Future Strategic Concepts Program, Institute for National Strategic Studies, National Defense University Location: National Press Club, 529 14th Street NW, Washington, DC 20045

Board of Trade Field Tested: Recruiting, Managing and Retaining Veterans, Washington, DC (8:30 AM, Fri 14 Sept) Description: Veterans are a tremendous source of untapped talent and come with a wealth of skills and experience beyond those of typical civilian employees. The skill sets, leadership ability, and practical experience they offer are true assets to the Greater Washington business community. On Friday, September 14th, the Board of Trade will host a special convening of experts to address the hiring of our servicemen and woman returning from active duty. Participants: Emily King, VP of military transitions with Buller Group and author, Pamela Hardy, People Services, Booz, Allen, Hamilton, Regie Stewart, Talent Acquistion, Sodexo, Col(Ret) Frank Wickersham, VP of CSR (Veterans Outreach) VSE Corporation Location: Capital Hilton, 16th and K Streets, NW, Washington, DC

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, September 10, 2012 2:18 pm

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