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This week's top story comes from Lockheed Martin CEO making the case for a business relationship in which DoD buys software and services on a monthly or periodic subscription basis -- following standard practices of many technology companies. As the Section 809 Panel noted in its recommendation for consumption-based solutions, this change would allow DoD to take advantage of updates in product and service offerings as well as price changes.
There is pending language in the FAR that would harmonize cybersecurity requirements across all government agencies. Some other changes to the FAR can be found in our Policy section, including changes to 8(a) contracting.
DoD released the 2023 Strategy for Countering Weapons of Mass Destruction last week that explains how the Department will align authorities, operations, activities, and investments
Last week we shared research from GAO on challenges to F-35 sustainment. This week a Defense One article hones in on one of the root causes: the numerous versions of the F-35 that make consistent parts and processes.
In Congress, Rep. Rob Wittman is looking for more information from the JPO about plans to improve F-35 readiness rates, with a potential hearing later this year.
Wittman also made news this week by saying he doesn't support an Air Force proposal to start new programs even when there's a continuing resolution.
In acquisition news, DoD and SBA announced a new Small Business Investment Company Critical Technologies (SBICCT) Initiative that will pair private capital with federally guaranteed loans to increase investment in DoD's critical technology areas. It will be executed by the Office of Strategic Capital and SBA's Office of Investment and Innovation.
And Bill Greenwalt has commentary criticizing the continuing strategy to increase domestic sourcing for defense materials (aka, Buy American) as reflected by proposed language in the NDAA. It continues conversations about how to balance secure supply chains with support from international partners and allies.
This Week's Top Story
Lockheed CEO Pitches Pentagon on Subscription Software
John Grady, USNI News
A parallel acquisition system – buying needed apps by monthly or yearly subscription to meet changing mission requirements – could improve deterrence by complicating an enemy’s war planning, Lockheed Martin’s top executive suggested Wednesday.
Jim Taiclet, Lockheed’s CEO, said the idea behind this approach is similar to allowing a customer to buy a 5G phone in Seoul and have it operate with new applications as needed in Washington.
Although “digital insertion” in this manner “hasn’t caught on yet” inside the Pentagon, across the tech industry or the broad industrial base, Taiclet said it has the potential “to move that deterrence goal post every three to six months.”
Traditionally, the Defense Department and defense industry think in big contracts for platforms that take years to design, build and manufacture and service. Taiclet, however, sees large defense contractors such as Lockheed Martin as a bridge from the subscription-based tech sector to the big-contract Pentagon acquisition process.
“We have to get our expertise together.” He added this approach “is starting to get some traction” among large investors in the tech sector.
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