The INSIDER - August 2, 2012

Editor's Note: Updated August 3 at 10:57 a.m. Up in the Air. Today's front-pagers: Senate Appropriations Mark Sustains Force Structure, Cuts Space Funding Senate appropriators have recommended increasing funding for procurement of the Air Force's F-22 backup oxygen system and continued operations of the C-27 and other aircraft, while cutting money from a handful of the service's marquee space programs because of contracting efficiencies on those acquisitions, as part of their fiscal year 2013 defense-spending bill made public Aug. 2. Air Force To Use Just Three Of 26 Marine Corps UH-1Ns For Operations The Air Force has already accepted six retired Marine Corps UH-1N helicopters and plans to take on an additional 20 between now and fiscal year 2014, but only three of the total incoming fleet of 26 will be "operationalized," according to an official from Air Force Global Strike Command. JSTARS AOA Concludes That Pricey Biz Jet Approach Is Best Option An Air Force analysis of alternatives that will decide how to best proceed with the service's Joint Surveillance Target Attack Radar System program hinges on pairing a fourth-generation radar on a business jet, an acquisition decision that defense contractors are calling "expensive" when compared to other options available to the Air Force. More news: Senate Appropriators: DOD Comptroller Shop Provides Too Little Oversight The Senate Appropriations Committee is accusing the Defense Department of failing to correct "years of poor fiscal discipline," arguing DOD's plans to reduce force structure and take risk in meeting military commitments worldwide stem from a lack of oversight by Pentagon Comptroller Robert Hale. Air Force Eyes Fall Decision On New Course For T-X Program The Air Force this fall will seek Pentagon permission to launch a major acquisition program to replace its aging fleet of T-38 aircraft after fiscal belt-tightening last year prompted the service to delay its plans for fielding a replacement trainer aircraft from 2017 to 2020. As NGEN Delays Mount, Navy Increases NMCI Cost Ceiling By $2.1 Billion In the midst of delays to the Navy's Next Generation Enterprise Network program, the service announced yesterday it intends to increase the contract ceiling for the legacy Navy-Marine Corps Intranet from $3.4 billion to $5.5 billion. And some key documents: Senate Appropriators' FY-13 Defense-Spending Report On Aug. 2, 2012, the Senate Appropriations Committee released the report accompanying the fiscal year 2013 military spending bill. Quadrennial Roles and Missions Review On July 20, 2012, the Pentagon submitted its quadrennial roles and missions review. Pivoting. The shift to Asia-Pacific gets high-level oversight -- and a new AT&L shop is on the way, too: New High-Level Asia-Pacific Group To Focus On Policies, Weapons Necessary For 'Pivot' The Defense Department is forming a high-level body to identify policy issues associated with "pivoting" the U.S. military to the Asia-Pacific region -- a chief aim of the Obama administration's new defense strategy -- and establishing an office in the Pentagon's acquisition shop focused on high-end military capabilities, according to Pentagon officials. Deputy Defense Secretary Ashton Carter recently decreed that the Deputy's Management Action Group (DMAG), which he chairs, would routinely review Asia-Pacific matters. In particular, it will focus on issues identified by a new entity led by three-star officers appointed by the services and supported by a panel co-chaired by the principal deputies for policy; acquisition, technology and logistics; and intelligence, as well as the director of the joint staff, according to sources familiar with a draft charter for the new entity. The office of the under secretary of defense for policy will serve as executive secretary of the panel, they said. . . . Also participating will be representatives from a new office being established in the Pentagon's acquisition directorate: the Strategic Capabilities Office. Sources familiar with the new organization -- which is not yet operational -- say the shop will focus on modernization efforts oriented toward giving U.S. forces the edge against high-end, asymmetric threats. Security Assistance. Inside the Pentagon's top story today: Overhaul Advocated For Multibillion-Dollar U.S. Security Assistance Efforts The White House needs to develop a national security strategy for its multibillion-dollar efforts to build the security capacity of foreign countries, update Byzantine processes for prioritizing and funding such projects, aid more civilian security personnel as opposed to troops and find better ways to assess whether individual initiatives are succeeding or failing, warns a State Department draft report prepared for senior administration officials. The State Department's International Security Advisory Board, chaired by former Defense Secretary William Perry, prepared the May 23 draft report based on a study chaired by former Pentagon policy chief Walter Slocombe. Inside the Pentagon obtained a copy of the draft report. Although the United States spends more than $25 billion on what is broadly labeled "security assistance" to boost the "security capacity" of foreign countries, there is no comprehensive definition of what "security capacity" means in this context, no overall strategy to guide the investments and "no coherent system for making those decisions or for evaluating the effectiveness of the program being undertaken," the draft report states. The programs range from providing major weapons to Israel to maintain its qualitative military edge to helping countries adopting democratic forms of government to create police, justice and corrections systems. DOCUMENT ALERT: Draft ISAB Report On Security Capacity Building In a May 23, 2012, draft report, the International Security Advisory Board examines issues concerning security capacity building. POM and Circumstance. POM news, already? In POM-14, Marine Corps Proposes Cutting 3DELRR Radar Funding The Pentagon's fiscal year 2014 budget process could mark the end of the Marine Corps' investment in the Air Force's Three-Dimensional Expeditionary Long-Range Radar (3DELRR) program, but the Marines are continuing to fund development of a Northrop Grumman radar vying to fill the Air Force's requirement. The Marine Corps' FY-14 to FY-18 budget plan, due to the Office of the Secretary of Defense this week, will recommend cutting funding for 3DELRR, which the service had considered a potential replacement for its aging Lockheed Martin AN/TPS-59 radar, said a service official familiar with the plans. The amount of money being cut from the effort in the Marine Corps' FY-14 program objective memorandum, or POM, is relatively small, the official said, but it would zero-out Marine Corps investment in the program, meaning the service would rely longer on upgraded AN/TPS-59 radar systems instead of buying 3DELRR, which is expected to become operational around 2020. But the Marine Corps is continuing to fund development of the Ground/Air Task-Oriented Radar (G/ATOR), a system developed for the Marines, which Northrop is also pitching to the Air Force to meet 3DELRR requirements ahead of schedule and at a lower cost than competing systems. Ready or Not. More from today's Inside the Pentagon: Senators Propose Bill To Reward, Punish DOD For Audit Readiness A handful of senators plan on filing a bill today that proposes incentives for reaching audit-readiness deadlines and consequences for missing them -- including blocking major weapons in development from starting procurement. Sen. Tom Coburn (R-OK) is spearheading the bipartisan bill, dubbed the "Audit the Pentagon Act of 2012," which would enhance reprogramming authority for military departments that receive an unqualified statement of budgetary resources for any fiscal year after FY-13. The legislation, which has seven cosponsors, would also enable these successful departments to use unobligated appropriations for bonuses, weapon system procurements or training programs. Inside the Pentagon obtained the 28-page draft legislation. Five percent of the aggregate amount of unobligated appropriations available to the military departments for the fiscal year could go toward these incentives. The money, however, could not be used for research, development, test and evaluation, military construction, or bonuses to officers or contractors. The defense secretary would be required to report any use of the money for incentives. Strike Zone. On JSF training issues, an answer: Air Force Announces F-35A Training Will Be Centered At Luke Air Force Base Air Force officials confirmed Wednesday that the service's F-35A Pilot Training Center will be housed at Luke Air Force Base in Arizona, a decision that was widely expected but required a drawn-out environmental evaluation before it could be formally announced. As the lead training center for the Air Force's Joint Strike Fighter pilots, Luke AFB can expect to receive three fighter squadrons totaling 72 aircraft, according to an Air Force release announcing the decision. First aircraft deliveries will begin in late 2013 or early 2014. DOCUMENT ALERT: Air Force Statement On F-35A Pilot Training At Luke AFB In an Aug. 1, 2012, statement, the Air Force announces F-35A pilot training will be held at Luke Air Force Base, AZ. Intel Inside. Looking inside the intel bill: Senate Intelligence Panel's Report Praises Launch Provider SpaceX In an effort to control costs, Defense Department space programs ought to look into using private launch providers such as the California-based SpaceX, according to the Senate Select Committee on Intelligence. Senate Intelligence Panel Members Decry Commercial Satellite Cuts Five members of the Senate Select Committee on Intelligence criticized cuts to commercial satellite imagery programs in the report accompanying the panel's fiscal year 2013 authorization bill. DOCUMENT ALERT: Senate FY-13 Intel Authorization Bill And Report On July 30, 2012, the Senate Intelligence Committee issued its fiscal year 2013 intelligence authorization bill and accompanying report. CBO Cost Estimate Of Senate FY-13 Intelligence Authorization Bill The July 31, 2012, report outlines the Congressional Budget Office's cost estimate of the Senate Intelligence Committee's fiscal year 2013 intelligence authorization bill. Sequestration Alert. Latest: Carter: Sequestration Would Introduce 'Senseless Chaos' As Readiness, Weapons Cut Sequestration would negatively impact readiness and training, "indiscriminately" cut funding for nearly 2,500 programs and projects, reduce the number of weapons purchased and create an "unready, hollow military force," the Pentagon's No. 2 official told lawmakers today. OMB Signals Plans To Provide Preliminary Sequestration Guidance On the eve of a scheduled showdown between Obama administration officials and House Republicans on the thorny issue of sequestration, the White House Office of Management and Budget today advised the Pentagon -- and other executive branch agencies -- that guidance on how to implement potential sequestration spending cuts is forthcoming. DOCUMENT ALERT: House Hearing On Sequestration Effects On Aug. 1, 2012, the House Armed Services Committee held a hearing on the effects of sequestration on the defense budget. Includes the opening statements of committee Chairman Buck McKeon (R-CA) and Ranking Member Adam Smith (D-WA) as well as the prepared testimony of Deputy Defense Secretary Ashton Carter and acting Office of Management and Budget Director Jeffrey Zients. OMB Memo On 'Issues Raised By Potential Sequestration' In a July 31, 2012, memo, the Office of Management and Budget declares it will work with federal agencies on any potential issues raised by sequestration. -- Dan Dupont