The INSIDER - September 13, 2012

Editor's Note: Updated September 14 at 10:40 a.m. Money Matters. Posted late yesterday: DOD Seeks To Keep 10 Programs From Being Derailed By Stopgap Spending Measure The Defense Department is seeking exceptions to the standard legislative rules for stopgap spending measures that bar increased production rates and prohibit the start of new programs, a move to avoid derailing 10 projects under a six-month continuing resolution that lawmakers are readying to fund the government from October through March. The Pentagon's proposal -- forwarded to Capitol Hill by the Office of Management and Budget, according to DOD sources -- was not included in the version of the continuing resolution introduced earlier this week in the House. These sources said congressional leaders are hoping for a "clean" bill that is unencumbered by special provisions that might complicate its passage. With congressional leaders from both parities aiming to avoid a government shutdown on the eve of the November elections, the stakes are high. "Sure, there may be perfectly good reasons why DOD wants anomalies" -- exceptions to the CR rules -- "but those reasons don't tend to rise to the standard necessary to get anomalies," said Russell Rumbaugh, director of the Stimson Center's budgeting for foreign affairs and defense program. "When we are discussing the future of the country, a $50 million savings is not really a big deal." Details on the programs in the full story. And scroll down for the back story. Up in the Air. Highlights from today's issue of Inside the Air Force: NASA Urges USAF To Reject 'Normalization Of Deviance' On F-22 Raptor NASA officials who conducted an independent analysis of the F-22 Raptor's life support systems this summer have concluded that the Air Force's proposed corrective actions to a series of hypoxia-like incidents are positive and worthwhile improvements to the aircraft, but have warned the service against continuing to accept a "normalization of deviance" in the F-22's performance. Access To F117 Tech Data Seen As Critical Factor In Engine Competition The Air Force is weeks away from beginning to disseminate technical information related to Pratt & Whitney's F117 engine to other companies interested in competing with P&W for future sustainment work on the motor, but the owner of the overarching C-17 sustainment contract this week raised questions about the viability of that competition. USAF Range Study Examines Defense, Energy And Technology Objectives The Air Force this month will complete a draft study of its test and training range infrastructure in an effort to better balance its national defense demands with the nation's imperative to develop more pervasive broadband and alternative energy solutions. Big Day. Major goings-on at the Pentagon's highest levels today: Panetta To Meet With 'Secretary's Leadership Council' To Discuss Strategic, Budget Issues Defense Secretary Leon Panetta is convening top brass from around the world for a high-level, one-day meeting with Pentagon leaders on Thursday to discuss a range of issues, including strategic and budget matters, according to Defense Department officials. On Sept. 13, the Secretary's Leadership Council -- which includes combatant commanders, military service chiefs and DOD's top civilian leaders -- will meet in the national capitol area for a routine gathering of the military's top officials that occurs approximately every three months. In preparation for this event, Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey and the service chiefs are meeting today with combatant commanders in a gathering of uniformed officials only. Thursday's agenda sets aside a half-day to discuss "strategic" and "budget" issues, according to Pentagon officials. The balance of the day is scheduled to review "campaign plans" and the "health of the force," these officials said. Money Matters. A related story from late Tuesday: DOD's Plans To Initiate FY-13 Multiyear Procurements At Risk The Defense Department's plans to lock in multiyear procurement contracts for the Army's CH-47H helicopter, the Navy's DDG-51 destroyer and the Marine Corps' V-22 Osprey aircraft are up in the air as Congress mulls legislation to fund the government through March. On Sept. 10, House Appropriations Committee Hal Rogers (R-KY) introduced a six-month "continuing resolution," a temporary funding measure designed by House and Senate leaders to avoid a pitched political battle over government spending on the eve of the November elections. Such a battle could result in a government shutdown at the end of this month. The proposed legislation bars DOD from using any funds for any multiyear procurement or associated actions, such as advanced procurement and economic order quantity procurement. Keep an eye out for more on that subject very soon. Eye on Libya. Meanwhile, events overseas make this story in today's Inside the Pentagon a must-read: DOD, State Propose Multimillion-Dollar Counterterrorism Aid For Libya The Pentagon and the State Department are asking Congress to approve millions of dollars in counterterrorism aid for Libya, a request prepared before Tuesday's killing of the U.S. ambassador to Libya, J. Christopher Stevens, and three of his staff members. The $11.8 million proposal would develop Libyan special operations forces to fight armed extremists. It would also bolster the country's border security to counter the illicit trafficking of weapons. The effort is part of a broader $44.8 million plan to provide security assistance to multiple countries -- investments that would mark the first use of the Global Security Contingency Fund authorized by Congress last year. The State Department formally notified Congress of the security assistance plans on Sept. 4. The Defense Department sent lawmakers a related notification on Aug. 24. Inside the Pentagon reviewed the documents, which also call for counterterrorism aid to the Philippines, Nigeria, Bangladesh, Hungary, Romania and Slovakia. The Global Security Contingency Fund is designed to quickly meet urgent needs worldwide. Related: U.S. Officials Propose New Counterterrorism Aid For Philippines, Nigeria Defense and diplomatic officials are asking lawmakers to approve a multimillion-dollar counterterrorism assistance effort for the Philippines, Nigeria, Libya, Bangladesh, Hungary, Romania and Slovakia in what would mark the first use of the new Global Security Contingency Fund. Nuclear Options. Inside the Pentagon also continues its work on a State Department report: State Department's Draft Report On Nuclear-Arsenal Cuts Prompts Debate A draft State Department report's call to reduce the U.S. nuclear arsenal to no more than 1,000 deployed strategic warheads and 500 strategic delivery vehicles if Russia is willing to reciprocate is drawing mixed reactions from policy experts. The May draft report by the International Security Advisory Board also urges the United States and Russia to accelerate implementation of the New START treaty reductions and to lay the groundwork for future cuts to nonstrategic nuclear weapons. The report was drafted based on a study led by Graham Allison of Harvard University and overseen by former Defense Secretary William Perry. Inside the Pentagon obtained a copy of the draft report last month. A subsequent draft obtained last month by the Arms Control Association deletes the specific reference to 1,000 deployed strategic warheads and 500 strategic delivery vehicles, but retains the general recommendation to implement mutual unilateral reduction below New START, including non strategic weapons. Daryl Kimball, executive director of the Arms Control Association, said both the United States and Russia should cut their respective nuclear arsenals to 1,000 deployed and nondeployed nuclear warheads or less in the next several years. Back story: Draft State Department Report Urges Deeper Cuts To Nuclear Arsenal The United States should offer to reduce its nuclear arsenal significantly below current treaty requirements to no more than 1,000 deployed strategic warheads and 500 strategic delivery vehicles if Russia is willing to reciprocate, according to a draft State Department report on near-term options for implementing more nuclear force cuts. DOCUMENT ALERT: Draft ISAB Report On Nuclear Force Reductions In a May 24, 2012, draft report, the International Security Advisory Board examines potential nuclear force reductions. Learning Curve. A look at lessons learned, and how to translate them into meaningful changes: Key Lessons From Decade Of War Await Fixes At Defense Department The Defense Department has assessed its mistakes during a decade of war, but analysts say it remains unclear whether DOD will seize the opportunity to implement recommended fixes. A spokesman for Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey said this week the general has read the Joint Staff's June 15 report on lessons learned from military operations in Iraq, Afghanistan and elsewhere, but has not directed any further action to implement recommendations. That task will fall to the Joint Staff's joint force development directorate (J-7) and the "established lessons learned architecture," said the spokesman, Richard Osial. Titled "Decade of War, Volume I: Enduring Lessons from the Past Decade of Operations," the report offers an array of recommendations, including calls for a new strategy for meeting military intelligence, surveillance and reconnaissance needs and new legislation to bolster interagency ties, modeled on the 1986 Goldwater-Nichols Act that reorganized DOD. The assessment, "while significant," is only the first step in turning critical observations into learned lessons, Lt. Gen. George Flynn, head of J-7, wrote in the report. "The work that follows, integrating findings into a continuous joint force development cycle, will serve as an enabler to building a more responsive, versatile and affordable force," Flynn wrote. In case you haven't seen that report, or need to see it again: Final Joint Staff Report On Lessons From 'Decade Of War' Quick Hits. More news of note: Germany Pushes Back Euro Hawk Plan; Northrop Expects Contract In Mid-2013 German military officials have altered their plan to purchase four Global Hawk unmanned aircraft from Northrop Grumman in 2012, according to company executives. P-8A Program Asserts Reliability Improvements But Withholds Specifics In the wake of criticism by the Defense Department's operational testing director, the Navy's P-8A Poseidon program is asserting reliability is improving, but is not releasing specifics. U.S.-Chinese Maritime Safety Talks Scheduled For Later This Month U.S. and Chinese naval officials will hold formal talks on maritime safety at the end of the month, according to U.S. Pacific Command. Commerce Department Issues C4ISR Surveys For DOD's S2T2 Effort The Pentagon's sector-by-sector, tier-by-tier assessment of the defense industrial base entered a new phase this week when the Commerce Department began issuing surveys to commercial facilities in the command and control arena. DOCUMENT ALERT: Commerce Department Survey Of C4ISR Supply Chain During the week of Sept. 10, 2012, the Commerce Department's Bureau of Industry and Security issued a survey to defense contractor facilities that "contribute products and services" to the C4ISR supply chain. On the Shelf. New and noteworthy additions to the archives: CRS Report On ISR Acquisition The Sept. 10, 2012, Congressional Research Service report -- originally obtained by Secrecy News -- outlines background and issues for lawmakers regarding intelligence, surveillance and reconnaissance systems acquisition. CRS Report On UAV Ops In The NAS The Sept. 10, 2012, Congressional Research Service report -- originally obtained by Secrecy News -- outlines background and issues for lawmakers regarding "unmanned aircraft operations in the National Airspace System." DOD's FY-13 Operational Energy Budget Certification The June 14, 2012, Defense Department report certifies that the Pentagon's fiscal year 2013 request for approximately $16.3 billion for 104 million barrels of fuel and approximately $1.6 billion for operational energy initiatives "are adequate for the implementation of the DOD Operational Energy Strategy." GAO Report On UAV Exports In a July 30, 2012, report to Rep. John Tierney (D-MA), the Government Accountability Office finds that a lack of information sharing among federal agencies has hindered the United States' ability to keep drone technology out of the hands of its enemies. Briefings From DLA's Strategic Materials Industry Day On Aug. 23, 2012, the Defense Logistics Agency held an industry day on strategic materials. Included are four different sets of briefing slides. DOD Inventory Of Contracts Report To Congress On Aug. 27, 2012, the Defense Department submitted a report to lawmakers stating that DOD's system for tracking contracts for services is still under development, but represents an improvement over the previous method. -- Dan Dupont