Wednesday, November 26, 2014

The INSIDER - November 25, 2014

Posted on November 25, 2014

Posted this morning:

Joint Vehicle Program Showcases The Tricky Math Of Intellectual Property

When defense contractors compile their bids for the Joint Light Tactical Vehicle program, the ensuing haggling over intellectual property costs could be the first major test of a key Pentagon policy.

The Army wants to find a contractor to build about 50,000 vehicles for the Army and the Marine Corps at a cost that could eventually reach tens of billions of dollars. What makes the project particularly interesting is buried at the end of a 335-page draft request for proposals: Contractors can sweeten their offers by also putting up for sale the technical data rights for the equipment they plan on building.

The service envisions using the information to hold periodical competitions for future production runs. The goal is to avoid long-term reliance on a single contractor whose incentive for minimizing costs to the government may wane over time.

Rising Sun.

Japan isn't waiting for Black Friday sales:

Japan To Buy Bell-Boeing's Osprey And Northrop's Hawkeye, Global Hawk In 2015

The Japanese Ministry of Defense has announced the selection of Northrop Grumman's E-2D Advanced Hawkeye and RQ-4B Global Hawk to meet its military modernization requirements. The country has also decided to procure the Bell-Boeing V-22 Osprey.

The Japanese MOD made the announcements in a series of notices accompanying the release of its fiscal year 2015 budget request. The notices were posted Nov. 21.

Northrop's E-2D was selected over Boeing's 737 AEW&C offer for an airborne warning and control platform. The MOD notice said the E-2D rated higher in terms of function and performance, cost and logistics.

Europe Bound.

DOD wants to send more Army combat vehicles to Europe:

Hodges: Army Looks To Add Nearly 100 More Combat Vehicles To Eastern Europe Next Year

The Defense Department seeks to add nearly 100 more Army combat vehicles to Eastern Europe by the end of 2015 as part of its pledge to help deter Russian aggression, according to the head of U.S. Army Europe.

Speaking to reporters Nov. 24 via teleconference from the U.S. Embassy in Lithuania, Lt. Gen. Ben Hodges said the Pentagon is mulling the best places to put this equipment. Although this decision would be something that is "nested" within U.S. European Command's plans for Europe, defense officials will work with the State Department because of the strategic impact of the decision, Hodges said.

"It would send a message if we had heavy equipment that was prepositioned in, say, Lithuania or Latvia or Poland or Romania," he said, noting that forces could use this equipment to train or for contingency purposes.

British Buy.

News on the United Kingdom's buying four Joint Strike Fighter jump jets:

United Kingdom's F-35B Deal 'Paves Way' For Operational Capability In 2018

The British government remains "on target" for achieving F-35 operational capability from land bases in 2018 with the signing of a contract for four B-variant combat jets, the country's chief of defence materiel, Bernard Gray, confirmed in a Nov. 24 statement.

The vertical-takeoff-and-landing aircraft were included in the Pentagon's $4.7 billion, low-rate initial production contract with manufacturer Lockheed Martin, announced last week. The contract buys 43 Joint Strike Fighters, of which 14 are for international customers.

In a Nov. 24 statement provided by Lockheed, the company said the United Kingdom has already taken delivery of three F-35Bs for test and evaluation purposes and another one is due to be delivered in early 2016. Those aircraft are currently being tested at Eglin Air Force Base, FL.

Defense Biz.'s Marjorie Censer had a chat with Engility's CEO this week:

Engility Seeks Growth Following TASC Deal

As Engility prepares to close its largest acquisition yet, the company is bracing for more consolidation within the government services industry.

Company executives have long said they sought to be a first mover, acting early to buy companies they see as the best targets. But even with a full plate -- Engility plans to begin integrating TASC's roughly 4,000 employees after the deal closes early next year -- executives say industry mergers and acquisitions are far from over.

"There still has to be consolidation," said Tony Smeraglinolo, Engility's chief executive, in an interview with "There are still too many of us chasing too few opportunities."

Ship Shape.

Inside the Navy's front page this week:

Navy 'Considering' 12th LPD In Light Of Hill Movement, LX(R) Decision

NORFOLK, VA -- The Navy is "considering" a proposal to build the 12th San Antonio-class ship as a bridge to a future amphibious replacement fleet in light of congressional movement and a recent decision to base the new LX(R) platform on the LPD-17 hull form, according to a service official.

Marine Corps Primary Ground Priorities Are Reflected In Strategy Doc

The Marine Corps' primary ground priorities are modernizing its assault amphibian capability, replacing the legacy amphibious vehicle through a combination of complementary systems and replacing a portion of the humvee fleet, as laid out recently in a new strategy document.

Marines Will Apply Lessons From 'Bold Alligator' To February Wargame

NORFOLK, VA -- The Marine Corps will take lessons learned from its recent amphibious exercise, Bold Alligator 2014, and apply those principles to a wargame in February called Expeditionary Warrior, according to a top service official.

Navy Completes Early Acquisition Steps For Connector Replacement

NORFOLK, VA -- The Navy recently completed an early step in the acquisition process for a replacement fleet of amphibious landing craft and is awaiting a decision memorandum that will officially approve the preferred alternative, according to a service official.

-- John Liang

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