Acquisition
Where federal contract spending is headed in 2025
Tom Temin, Federal News Network
The article discusses trends in federal contract spending for 2025, highlighting several key points:
- Increased Spending: Federal contract spending has been rising, with totals reaching $776 billion in fiscal year 2023.
- Consolidation and Competition: There is a trend towards fewer, larger contracts due to category management policies, which is increasing competition among prime contractors.
- Top Spending Areas: Health services have become the top spending area, driven by the Veterans Affairs' Community Care Network. Professional services and IT follow, with significant opportunities in these sectors.
- Subcontracting and Partnerships: Prime contractors are increasingly looking into subcontracting and partnerships to navigate the competitive landscape.
- Cybersecurity Requirements: New cybersecurity readiness assessments are being introduced, particularly by the Department of Homeland Security, which contractors must comply with to secure contracts.
Groundswell challenges Army's award of business system consolidation contract
Nick Wakeman, NextGov
Groundswell has filed a protest at the U.S. Court of Federal Claims against the Army's decision to award a business system consolidation contract to Accenture Federal Services. Groundswell is questioning the Army's evaluation process and the decision to stick with Accenture, a long-time incumbent. The contract, known as Enterprise Business Systems – Convergence, aims to consolidate several logistics and financial systems using SAP software. Groundswell's complaint is currently sealed, and the court will eventually release a redacted version.
Photo illustration of U.S. Army cyber Soldier in operations center. (U.S. Army photo by Tài Doick)
Reimagining Contracts in the Digital Era
Bridget Lynch, US Army
The article discusses the U.S. Army's efforts to modernize its contracting processes through the creation of the Digital Capabilities Contracting Center of Excellence (DC3oE) at Aberdeen Proving Ground. This initiative aims to make software contracting more agile and effective by engaging earlier in the capabilities process, focusing on building expertise among contracting officers, and implementing specialized training. The DC3oE has already made significant progress, including the successful award of a $350 million contract for the Integrated Personnel and Pay System - Army (IPPS-A) using innovative contracting methods.
Innovation
Political leaders need to stop standing in the way of defense innovation
John Ferrari, Breaking Defense
The article discusses the obstacles hindering defense innovation in the U.S., emphasizing that these barriers are not technological but political. The author identifies three main roadblocks:
- Legislative Battles: The Appropriation Committees in Congress micromanage defense spending, creating a cumbersome system that stifles innovation.
- Outdated Procurement Rules: The Office of the Secretary of Defense enforces antiquated procurement rules that complicate the acquisition process for new technologies.
- Centralized Control: Political leaders within the service secretary offices hold too much control over acquisition and budget decisions, preventing a more dynamic, bottom-up approach.
The author argues that to foster innovation, power should be devolved to warfighting leaders, and the procurement system should be reformed to be more flexible and responsive.
Industry
The Irregular Warfare Technical Support Directorate (IWTSD) focuses on developing capabilities for the Department of Defense (DoD) to conduct irregular warfare against various adversaries, including great power competitors and non-state actors. Established from the Combating Terrorism Technical Support Office (CTTSO) in 1999, IWTSD supports rapid research, development, and technical innovation to enhance U.S. military operations.
IWTSD collaborates with a diverse range of partners, including small businesses, large corporations, academia, and international allies, to deliver effective solutions. The organization also manages bilateral agreements with countries like Australia, Canada, Israel, Singapore, and the United Kingdom.
FY 26 CLASSIFIED INDUSTRY DAY
To attend this in-person event, participants MUST register (at above tab) NO LATER THAN 1600 hrs on 15 November 2024. The IWTSD will confirm vendors have the appropriate facility clearance (FCL) or support agreement in place, and to verify attendee security clearances. Submissions after this time/date WILL NOT BE PROCESSED.
Tuesday, 14 January 2025
0800-1200 and 1300-1700
at Science Applications International Corporation (SAIC)
In this 2021 photo, a Rock Island Arsenal - Joint Manufacturing and Technology Center employee works on the assembly line at Rock Island Arsenal, Ill. U.S. Army / Debralee Best/RIA-JMTC
Budget woes may slow Pentagon efforts to strengthen industry
Lauren Williams, Defense One
The article highlights the potential impact of budgetary constraints on the Pentagon's efforts to bolster the defense industry. Key points include:
- Budget Delays: The Pentagon's new industry strategy, which aims to enhance supply chains and production capabilities, may face delays if the 2025 budget is not passed on time. This strategy includes six initiatives targeting critical areas such as missile and submarine industries, rapid acquisition, and intellectual property protection.
- Supply Chain Vulnerabilities: Defense officials are concerned that without timely budget approval, efforts to address supply chain vulnerabilities and improve the production of essential weapons systems could be significantly hindered.
- Strategic Initiatives: The strategy is designed to ensure the U.S. maintains a competitive edge in defense technology and production. It focuses on increasing the resilience and security of supply chains, which are crucial for national security.
- Industry Collaboration: The Pentagon plans to work closely with industry partners to implement these initiatives, but budget uncertainties could disrupt these collaborations and slow down progress.
DoD Releases National Defense Industrial Strategy Implementation Plan
Department of Defense
Fact Sheet
The U.S. Department of Defense (DoD) has released the National Defense Industrial Strategy Implementation Plan (NDIS-IP). This plan outlines how the DoD will achieve the four strategic priorities set in the National Defense Industrial Strategy (NDIS). The NDIS-IP includes six cross-cutting initiatives aimed at modernizing the defense industrial base to create a more resilient and robust ecosystem. It emphasizes the need for coordinated efforts across the DoD, U.S. government, private industry, and international allies.
With Industry Help, DOD Strives to be Leader in Microchip Research, Production
David Vergun, DOD News
The U.S. Department of Defense (DOD) is striving to lead in microchip research and production with the help of industry and academic partners. Deputy Defense Secretary Kathleen Hicks highlighted the importance of microchips for military systems and civilian applications during the 2024 Microelectronics Commons Annual Meeting. The DOD has awarded nearly $700 million to bridge the gap between research and production, with more investments planned. The CHIPS and Science Act supports this initiative, emphasizing the U.S. government's commitment to securing the future through innovation and collaboration.
Lockheed Martin completes acquisition of smallsat manufacturer Terran Orbital
Sandra Erwin, Space News
Lockheed Martin has completed its acquisition of small satellite manufacturer Terran Orbital for approximately $450 million. This acquisition strengthens Lockheed Martin's position in the commercial satellite sector and builds on a partnership that began in 2017. Terran Orbital, now rebranded as "Terran Orbital, a Lockheed Martin Company," will continue to operate as a merchant supplier for the broader space industry.
The acquisition allows Lockheed Martin to leverage Terran Orbital's expertise in low-cost satellite production for both military and commercial ventures. This move also aims to integrate Terran Orbital's advanced automation and manufacturing processes into Lockheed Martin's satellite production lines.
Australia kills $5.3B military space program with Lockheed
Colin Clark, Breaking Defense
Australia has canceled its $5.3 billion military space program with Lockheed Martin, known as JP 9102. The decision was made due to evolving space technologies and threats, which led the Department of Defence to conclude that a single orbit satellite system would not meet strategic priorities. Instead, they plan to focus on a multi-orbit capability to enhance resilience.
The cancellation has drawn criticism from industry experts and the Space Industry Association of Australia, who argue it undermines the country's space capabilities and economic potential. Lockheed Martin Australia has committed to redeploying affected staff to other programs.
Navy contractors had key roles in lead-up to Red Hill water disaster, watchdog says
Wyatt Olson, Stars and Stripes
The article discusses a report by the Government Accountability Office (GAO) criticizing the Navy's management of contractors at the Red Hill Bulk Fuel Storage Facility in Hawaii. The GAO found that the Navy failed to adequately oversee contractors, leading to delays and cost overruns in the cleanup and defueling operations following a fuel leak. The report highlights issues such as insufficient staffing, lack of clear guidance, and poor communication between the Navy and contractors. The GAO recommends that the Navy improve its oversight and management practices to prevent future problems.
Research
The Defense Reformation
Shyam Sankar, Palantir
"The Defense Reformation," is a comprehensive treatise aimed at revitalizing the American industrial base, particularly in defense manufacturing. The document outlines 18 theses that propose significant changes to how the U.S. government engages with defense contractors and emphasizes the need for increased competition and innovation within the Department of Defense.
Sankar argues that the current state of American industries is inadequate for producing essential military equipment and highlights the urgency of rebuilding the nation's capacity for rapid repair and regeneration of weapon systems. The treatise calls for a strategic overhaul to restore America's competitive edge in defense manufacturing, drawing parallels to the industrial efforts during the Cold War.
Defense
Pentagon developing ‘Responsible AI’ guides for defense, intelligence, interagency — even allies
Sydney Freedberg, Breaking Defense
Images of RAF Air Controllers aboard an RAF Boeing E-3D Sentry, aka AWACS, conducting a mission in support of NATO. (British Ministry of Defense)
The Pentagon is developing a series of "Responsible AI" guides aimed at ensuring the safe, ethical, and legal development of artificial intelligence across various sectors, including defense, intelligence, and interagency operations. These guides, part of an interactive online toolkit, are designed to help program managers and officials navigate laws, regulations, and best practices. The initiative also extends to international allies, with versions tailored to align with NATO principles and other partners' requirements. This effort is part of a broader strategy to promote American values in AI development and to facilitate interoperability and trust among allied nations.
Navy will extend service lives of 3 cruisers following destroyer announcement
Justin Katz, Breaking Defense
The U.S. Navy has announced it will extend the service lives of three Ticonderoga-class cruisers, adding a total of 10 years to the fleet's operational capacity. This decision follows a similar move to extend the service lives of 12 Arleigh Burke-class destroyers. The cruisers, USS Gettysburg (CG-64), USS Chosin (CG-65), and USS Cape St. George (CG-71), have undergone extensive modernization, including upgrades to their hulls, mechanical systems, and combat systems. This extension aims to maintain fleet size and capability while new ships are being constructed.
Congress
Report to Congress on Navy Force Structure, Shipbuilding Plans
usnishareadmin, USNI News
The recent report to Congress on Navy Force Structure and Shipbuilding Plans, dated October 30, 2024, covers several key points:
- Navy Size and Composition: The Navy currently has 296 battle force ships and aims to increase this to 381 manned ships, plus 134 large unmanned vehicles by 2042.
- Ship Procurement and Budget: The FY2025 budget requests $32.4 billion for shipbuilding, including six new ships, which is fewer than the previous year's projection.
- Retirement of Ships: The Navy plans to retire 19 ships in FY2025, including 10 before their expected service lives end, resulting in a net decrease of nine ships.
- Future Projections: The fleet is expected to grow to over 300 ships by FY2032 and reach the 381-ship goal by FY2042.
- Oversight Issues: Key issues for Congress include potential amendments to U.S. law to support the new 381-ship goal, industrial base capacity, inflation in shipbuilding costs, and the procurement of specific ship types.
Events
SERC Annual Events 2024
12-13 November 2024
State of Defense Business
13 November 2024
12:00 PM - 5:00 PM ET
Washington, DC
Defense officials, lawmakers, and industry leaders will gather to discuss acquisition and business priorities for the U.S. military. Key topics include improving the acquisition process, managing budget uncertainties, and modernizing technology procurement to meet the needs of both battlefield operations and strategic leadership.
Government Procurement Conference
14 November 2024
9:00 AM - 3:30 PM ET
New York, NY
Readying the Navy’s Platforms: More Players on the Field - A Conversation with the Vice Chief of Naval Operations
14 November 2024
1:00-2:00 PM ET (Hybrid)
RCV Software Pathway Industry Day
20 November 2024
Sterling Height, MI
Tech and Maritime Security Cooperation between NATO and the Indo-Pacific Hudson Institute
22 November 2024
Washington DC
Defense Manufacturing Conference (DMC) 2024
2-5 December 2024
Austin, TX
I/ITSEC Training/Simulation Conference
NTSA
2-6 December 2024
Orlando, FL
Reagan National Defense Forum
6-7 December 2024
Sumi Valley, CA
22nd Annual Acquisition Research Symposium & Innovation Summit
7-8 May 2025
Monterey, CA
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