Acquisition
Photo by Jeffrey Clayton on Unsplash
Don’t let ‘efficiency’ result in looser standards for defense contractors
Julia Gledhill, Breaking Defense
In response to a recent industry recommendation to eliminate Cost Accounting Standards (CAS) for contractors, Julia Gledhill of the Stimson Center argues that this elimination would likely lead to increased Pentagon waste and reduced accountability. CAS standards provide vital protections for taxpayers by ensuring costs are reasonably allocated and allowing the government to recoup misallocated funds.
- Cost-Based Contracts: CAS provides criteria for allocating costs to contracts priced based on actual or expected costs.
- GAAP Inadequate: Despite suggestions to the contrary, Generally Accepted Accounting Principles (GAAP) serve a different purpose than CAS. The Government Accountability Office found GAAP insufficient for government contract cost determination in 1970.
- Billion Dollar Issues: The Defense Contract Management Agency reported over $3.1 billion in CAS compliance issues in 2020. Without CAS, the Pentagon would lose significant ability to hold contractors accountable.
Faster Acquisition Requires Simpler Requirements
Laura Heckman, National Defense
Overly complex requirements are a major cause of the slow and cumbersome defense acquisition process, according to exports at the National Defense Industrial Association’s Special Operations Symposium in February. Simplifying these requirements, along with fostering a culture of flexibility, innovation, and risk tolerance within both the Pentagon and Congress, is essential for faster acquisition.
- Complex burden: The defense acquisition process is significantly slowed by overly complicated requirements, which are described as an "enormous problem" by Representative Adam Smith. He illustrated this with an example of a ship worker who told him that the requirements for painting a ship's underwater section were 1,200 pages long.
- Agility Is Essential: Panelist contented that requirements need to be adaptable to keep pace with evolving technology and threats.
- Radical Simplification: Panelists advocated for a significant reduction in the volume of requirements, possibly by implementing an automatic re-look and re-justification process within the Defense Department to identify and eliminate outdated or unnecessary requirements.
How 2016 NDAA transformed OTAs into key defense contracting tool
Anastasia Obis, Federal News Network
The 2016 National Defense Authorization Act (NDAA) significantly transformed Other Transaction Authority (OTA) into a vital defense contracting tool. It allowed the Department of Defense (DoD) to bypass traditional, cumbersome regulations and engage more effectively with non-traditional contractors for both prototype development and follow-on production.
- Prototype to Production: The legislation authorized the use of OTAs to move innovative technologies from prototype development into full production, particularly by engaging with non-traditional defense contractors and small businesses.
- Increased Usage & Ongoing Evaluation: The use of OTAs has significantly increased, leading to substantial spending, and is currently under further scrutiny by the GAO, A GAO report due in the summer of 2025 will examine the use of OTAs, including the nature of recipients.
Interview With Space Development Agency’s Chief of Contracts, Christopher Glista
Emily Ashcom and Benjamin Tyree, Defense Acquisition Magazine
As the inaugural Chief of Contracts, Christopher Glista built SDA's contracting cell from scratch and manages its daily operations. Glista's efforts have been crucial in establishing SDA's contracting organization and navigating the complexities of modern space acquisition to deliver capabilities at speed.
- Nontraditional Engagement: SDA actively seeks to expand its performer base by engaging nontraditional space companies through initiatives like the HALO program, which funds prototype mission demonstrations.
- Commercial Leverage: SDA aims to utilize commercial technology as much as possible, particularly for space vehicle buses, while acknowledging the need for backward compatibility with existing DoD systems.
Innovation
A team of Department of Defense drone operators and experts test the technical capabilities of various Uncrewed Aerial Systems (UAS) during a Defense Innovation Unit led prize challenge to identify platforms, components, and capabilities for Blue UAS, which clears and validates flying platforms are safe to fly, cyber-secure, and meet DOD requirements, at Marine Corps Air Ground Combat Center, Twentynine Palms, California, on Nov. 2-6, 2024. (DOD photo by Devon Bistarkey, Defense Innovation Unit)
10 years in, the Defense Innovation Unit needs to pivot
Tom Temin, Federal News Network
The Defense Innovation Unit (DIU), after a decade of operation, is transitioning to its 3.0 phase, shifting its focus from prototyping commercial technologies to scaling them for production to address significant military needs.
- Streamlined Acquisition: DIU utilizes Commercial Solutions Openings and Other Transaction Authorities (OTAs), which allow for a direct pathway from prototype award to production without further competition if a military department adopts the technology.
- GAO Urges Metrics: The GAO recommends that DIU develop better performance metrics to assess the effectiveness of products in the production phase.
- Ecosystem Coordination: DIU now has the responsibility to coordinate innovation efforts across different military service organizations.
- GAO Report: Defense Innovation Unit: Actions Needed to Assess Progress and Further Enhance Collaboration
Eye on the Grid: Navy Develops ‘MOSAICS’ to Cyber-Defend Critical Infrastructure
Steve Ghiringhelli, NIWC Atlantic Public Affairs Office, U.S. Navy
MOSAICS is a novel approach in cybersecurity and systems engineering developed by Naval Information Warfare Center (NIWC) Atlantic to defend critical industrial control systems (ICS) that operate vital infrastructure like power and water treatment plants.
- DoD Building Code: MOSAICS could soon be implemented into the DoD's Unified Facilities Criteria (UFC) 1-200-01, the DoD Building Code.
- Enhanced Security: UFC specifications would contribute to a comprehensive set of standards ensuring the safety, security, durability, and functionality of critical ICS in military facilities.x
- National Impact: MOSAICS has potential applications across national infrastructures beyond the DoD, including the power grid and water treatment plants.
Defense & Strategy
A U.S. Marine Corps F/A-18D Hornet aircraft with Marine Fighter attack Squadron 115, Marine Aircraft Group 12, 1st Marine Aircraft Wing, takes off from Kadena Air Base, Okinawa, Japan, July 17, 2023 during Northern Edge (NE) 23-2. As the stand-in force aviation combat element, 1st MAW utilized NE 23-2 to establish robust kill webs and bridge Marine aviation command and control (C2), sensor, and shooter capabilities across the joint force. (U.S. Marine Corps photo by Lance Cpl. David Getz)
Experts: ‘Kudos’ to Air Force Progress on Kill Webs, but Some Problems Persist
Shaun Waterman, Air & Space Forces Magazine
The Air Force has achieved notable progress in developing and fielding kill webs and in understanding how to disrupt adversarial kill webs; however, persistent challenges related to programmatic silos, high classification levels, and the integration of cutting-edge technologies with industry partners need to be addressed for continued advancement.
- Organizational Silos: Partnership with industry is hampered by silos across programs and high classification levels. Program silos lead to costly, similar but different solutions requested by various platforms.
- Classification Limits: High classification hinders training and operational analysis using real threat data.
The Navy Needs a 180-Degree Pivot: Embracing Autonomy and AI for Maritime Dominance
John Ferrari, Breaking Defense
Retired US Army Maj. Gen. John Ferrari argues that the U.S. Navy must execute a 180-degree pivot by divesting from manned aircraft and large surface vessels in favor of autonomous systems and AI to ensure future maritime dominance. This transformation necessitates embracing mass production of smaller, specialized unmanned platforms and a cultural shift within the Navy.
- Current Incapabilities: The present Navy cannot operate effectively in three simultaneous theaters and lacks sufficient resources for sustained combat.
- Rapid Adoption: Producing drones at scale is easier than building complex manned aircraft. Sea drone adoption will be rapid due to AI and lessons learned from aerial drones.
- Combat Effectiveness: Recent conflicts demonstrate the battlefield impact of swarming and specialized drones. The focus should be on thousands of autonomous vessels instead of the 355-ship target.
Ep. 36: Contested Logistics: Repairing America's Blind Spot
Noah Sheinbaum, Crossing the Valley
In this interview, Phillip Buckendorf, the CEO and founder of Air Space Intelligence (ASI), argues that contested logistics from the homeland to forward positions is an overlooked vulnerability in the US defense ecosystem.
- Predictive Displays: ASI's core innovation is the transition from displays showing current conditions to simulations predicting future states, enabling optimization against future scenarios
- User Adoption: The bigger challenge in the shift to predictive data displays is not technical, but human. Products and interfaces must help operators adapt to new decision frameworks.
Industry
The first C-130J-30 Super Hercules aircraft being built for the U.S. Navy’s E-130J program. (Photo by David L. Key, Lockheed Martin)
U.S. Must Re-Posture its Defense Industrial Base
Jennifer Stewart, National Defense
National Defense Industrial Association's (NDIA) "Vital Signs 2025" report argues that the U.S. defense industrial base is misaligned with national strategic objectives. This misalignment necessitates a re-posturing to enhance readiness and address great power competition through a balanced approach involving both traditional and non-traditional contractors.
- Regulatory Differences: Policymakers struggle to reduce entry and retention barriers for small and non-traditional companies, like regulatory compliance costs and IP concerns. Meanwhile, traditional contractors face increasing scrutiny while being burdened by regulations that stifle speed and increase costs.
- Zero-Sum Fallacy: Pitting traditional against non-traditional contractors is a flawed approach. The focus instead should be on reducing regulatory burdens and sharing acquisition risk.
- Incentivizing Business Decisions: Companies are expected to de-risk supply chains and rapidly increase before contract awards, but acquisition strategies don't sufficiently incentivize this.
- Recommendations: The report recommends streamlining the acquisition processes, reducing regulatory burdens, improving requirements discipline, and balancing risk between government and industry to foster innovation and increase capacity across both traditional and non-traditional contractors.
- Full Report: Vital Signs 2025
DIU to start field testing quantum sensors in tough conditions
Sydney J. Freedberg Jr., Breaking Defense
DIU has awarded contracts to 18 vendors in order to transition promising quantum sensor technology from development to real-world military deployment by identifying mature solutions, ruggedizing them, and addressing any issues through practical testing.
- Early Field Testing: The DIU's strategy prioritizes early field testing of less-than-perfect ("80 percent") solutions rather than waiting for fully optimized lab prototypes.
- Focus on Deployability: A key reason for this field-testing approach is to evaluate the ruggedness and deployability of the quantum sensors in meaningful operational packages. This involves integrating the sensor with necessary subsystems to see how it functions in actual deployment scenarios and challenging real-world conditions .
‘It Works’: Space Force Expands Surveillance-as-a-Service Program After Successful Pilot
Greg Hadley, Air & Space Forces Magazine
The U.S. Space Force's Tactical Surveillance, Reconnaissance, and Tracking (TacSRT) program is a now-proven marketplace utilizing commercial satellite intelligence to provide readily accessible and unclassified surveillance data to military commands and allies for various operational needs.
- Commercial Intel: TacSRT functions as a marketplace connecting commercial data providers with military users seeking specific information
- Demand Driven: Combatant commands' high demand for information, exceeding the capacity of traditional intelligence assets, fueled the need for TacSRT.
- Pilot Success: TacSRT imagery monitored security during the construction of the humanitarian relief pier in Gaza, providing daily, unclassified products to all concerned parties.
Congress & Government
The aircraft carrier USS Harry S. Truman (CVN 75), front, passes the aircraft carrier USS George H. W. Bush (CVN 77) as it departs Norfolk Naval Shipyard after completing a 10-month regularly scheduled extended carrier incremental availability. (US Navy photo by Mass Communication Specialist 2nd Class Steven Edgar)
New bill would create commission to investigate state of American shipbuilding
Justin Katz, Breaking Defense
A bipartisan group of House lawmakers has introduced the "Save Our Shipyards Act" to establish a congressional commission tasked with investigating the condition of the U.S. maritime industry and formulating actionable policy recommendations to revitalize the maritime industrial base for the American military. This initiative acknowledges a recognized crisis in American shipbuilding and aims to provide a focused approach to addressing the challenges.
Senate Confirms New Deputy Defense Secretary
Matthew Olay, DOD News
Stephen A. Feinberg has been confirmed as the new Deputy Defense Secretary, taking on responsibilities for the DOD's daily operations and budget management with a stated focus on financial accountability and bolstering the defense industrial base. His confirmation follows a Senate hearing where he outlined his priorities, including improving the Pentagon's audit process and strengthening ties with the private sector.
Research
Nick Ut/Getty Images
Enhancing Defense Industrial Cooperation Between Australia and the United States
Cynthia Cook, et al, Center for Strategic and International Studies
This report from the Center for Strategic and International Studies (CSIS)examines the increasing importance of the alliance between Australia and the U.S. in the face of evolving global threats, particularly in the Indo-Pacific region. The authors argue that closer collaboration between the two country's defense industries is crucial for deterring adversaries and explore avenues beyond traditional government sales to foster cross-national partnerships.
Full Report
Safe and Effective: Advancing Department of Defense Test and Evaluation for AI and Autonomous Systems
Josh Wallin, Center for a New American Security
This report from Center for a New American Security emphasizes the urgent need for robust test and evaluation (T&E) frameworks within the DOD to keep pace with the rapid advancements and unique challenges presented by artificial intelligence (AI) and autonomous systems. The study offers a range of recommendations across the system lifecycle to ensure these technologies are deployed safely and effectively in military operations.
Full Report
Prioritizing Maintenance Restructuring and Resourcing for Autonomous Systems
Maj. Dennis A. Vinett, U.S. Army, Military Review
The adoption of autonomous systems by the U.S. Army necessitates a fundamental restructuring and increased resourcing of maintenance support. This support currently lags behind acquisition efforts, risking the full realization of these new technologies' combat potential. The author recommends a holistic approach involving senior leadership, tailored training, and a blending of military and industry best practices.
Mission-Critical Information Technology: Agencies Are Monitoring Selected Acquisitions for Cybersecurity and Privacy Risks
Government Accountability Office
This GAO report identifies the critical challenges federal agencies face in acquiring essential IT systems, often experiencing cost overruns, delays, and performance issues, with a significant number of these mission-critical acquisitions also facing escalating risks in cybersecurity and information privacy. Among the 16 critical IT acquisitions reviewed, several within the DOD are highlighted as essential to national security.
Opportunities
U.S. Army Staff Sgt. Luis Andujar lands a Skydio X2D SUAS during a training exercise Nov. 15, 2024 at Fort Indiantown Gap, Pa. (U.S. Army National Guard photo by Sgt. 1st Class Shane Smith)
Sharpening AI warfighting advantage on the battlefield
DARPA
DARPA's Securing Artificial Intelligence for Battlefield Effective Robustness (SABER) program is soliciting proposals for a red-teaming framework to proactively identify and address vulnerabilities against adversarial attacks in realistic conditions. The goal is to provide warfighters with trustworthy AI capabilities and cultivate a Department of Defense-wide culture of security for AI-enabled systems.
More Information: SABER Program Page
RFP: Securing Artificial Intelligence for Battlefield Effective Robustness (SABER)
Defense Logistics Agency Develops AI Tool to Monitor Supply Chain Risk
Josh Luckenbaugh, National Defense
The Defense Logistics Agency (DLA) is developing an artificial intelligence tool to proactively monitor and mitigate risks within its complex supply chains. This tool aims to provide enhanced visibility into supplier performance and potential challenges, ultimately ensuring the timely delivery of essential supplies to warfighters.
Request for Solutions: Artificial Intelligence (AI) for financial reporting and audit processes
Events
The Defense Department’s 8 Percent Challenge: What to Cut and Where to Invest
21 March 2025
Virtual
DoD Modernization Exchange 2025
25-26 March 2025
Virtual
AUSA Global Force Symposium and Exposition
25-27 March 2025
Huntsville, AL
Software-defined warfare: A blueprint for sustaining a competitive military edge
27 March 2025
Washington, DC
TEVCON: Technology, Energy, Vehicle Conference
2-4 April 2025
San Diego, CA
Technology & National Security Conference
4-5 April 2025
Cambridge, MA
Building Critical Mineral Security for a Sustainable Future
30 April 2025
Washington, DC or Virtual
Sea Air Space
6-9 April 2025
National Harbor, Maryland
APEX
23-24 April 2025
National Harbor, Maryland
2025 State of the Space Industrial Base Conference and SSIB Workshops
29 April - 2 May 2025
Albuquerque, NM
Creating Synergy for Informed Change - Transitioning Technology
22nd Annual Acquisition Research Symposium & Innovation Summit
7-8 May 2025
Virtual
2025 ASNE Intelligent Ships Symposium
12-14 May 2025
Philadelphia, PA
DLA Supply Chain Alliance Conference & Exhibition
11-12 June 2025
Richmond, VA
Training & Simulation Industry Symposium (TSIS) 2025
17-18 June 2025
Orlando, FL
MODSIM World 2025
18-20 August 2025
Norfolk, VA
I/ITSEC 2025: Optimizing Training: Ensuring Operational Dominance
1-4 December 2025
Orlando, FL
One more thing...
Graduates of the Leadership Education and Development (LEAD) program pose beneath a replica of the Navy's famous "Dont Give Up the Ship" battle flag hanging in Memorial Hall at the US Naval Academy. LEAD is a one-year Masters program offered by NPS in collaboration with the Naval Academy to develop effective warfighter leaders in the Navy and Marine Corps.
"Dont Give Up The Ship" Has Become a Symbol of Navy Grit, Courage, and Tenacity
A storied Navy battle flag with the motto "Dont Give Up the Ship" hangs in Memorial Hall on the campus of the U.S. Naval Academy (USNA) -- or at least, a replica does. The original flag -- which dates to the War of 1812 -- is now preserved in the USNA Museum.
"Dont give up the ship. Fight her ‘til she sinks" was the final order of Captain James Lawrence of the USS Chesapeake as he lay wounded during a fierce engagement with the British HMS Shannon in 1813. Despite his command to fight on, the Chesapeake was ultimately captured.
Lawrence's courageous last words deeply inspired his friend and fellow naval officer, Oliver Hazard Perry. When Perry was given command of the American squadron on Lake Erie, he honored Lawrence by naming his flagship the USS Lawrence and by carrying a battle flag bearing Lawrence's defiant motto "Dont Give Up The Ship."
This flag flew proudly during the crucial Battle of Lake Erie in September 1813. Even when the Lawrence was heavily damaged and Perry was forced to transfer to the USS Niagara, the spirit of the flag endured, contributing to the American victory and solidifying "Don't Give Up The Ship" as a rallying cry for the U.S. Navy.
Today, the "Dont Give Up The Ship" flag serves as a potent symbol of the enduring spirit, resilience, and unwavering dedication expected of those serving in the U.S. Navy. The flag connects current and future sailors to the bravery and sacrifice of their predecessors, inspiring them to persevere through adversity in the face of challenge, just as Captain Lawrence and Commodore Perry did.
Learn more here: How 'Don't Give Up the Ship' Became a US Navy Rallying Cry
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