Army Operating On ‘Ragged Edge’ As Further Cuts Loom, Missions Bloom

By Dan Parsons

With potentially draconian budget cuts on the horizon and the uncertainty of operating on a stop-gap funding measure that could expire by year's end, the Army is operating on the “ragged edge” of its capability, the service’s outgoing civilian chief said Oct. 12.

In the six years Jon McHugh has served as the secretary of the Army–the second longest tenure in the service’s history–he has not received a budget on time and for much of the time the Army has been on a postwar downward trajectory in manpower and resources.

The Army is set to shrink to 450,000 active duty soldiers by fiscal year 2017 and the prospect looms in December that the current continuing resolution funding the government could lapse, followed by the even more drastic cuts that could snap into effect if Congress does not repeal sequestration before January.

“We are on the ragged edge,” McHugh said at the Association of the United States Army’s annual exposition in Washington, D.C. “We are in the extraordinarily rare position in American history where our budgets are coming down but our missions are going up. The problem we have been most befuddled by is not the challenges we saw, not the ones we planned for, that we budgeted for. It’s the ones we didn’t see, we didn’t budget for, we didn’t plan for.”

While the Army was winding down the wars in Iraq and Afghanistan, budget hawks and a weary public began looking for peace dividends. Almost as soon as the service was no longer significantly engaged in combat operations in those conflicts, the Islamic State emerged and Russia began its adventur-ism in Eastern Europe, McHugh said.

“Anything less than the president’s proposed budget, or another unforeseen challenge, let alone the combination of the two, will put this Army and this nation in a very dangerous place,” McHugh said.

During his first AUSA appearance as the 39th Army Chief of Staff, Gen. Mark Milley, shared McHugh’s vision that the Army will continue to be globally deployed and responsible for responding to a range of threats from the continuing war on international terrorism to the potential of engaging a near-peer state like Russia.

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TUESDAY, SEPTEMBER 15, 2015 Page 1 58th Year, Volume 267, No. 53

No Air Force Participation In Fiscal 2017 F-35 'Block Buy,' Officer SaysBy Pat Host

NATIONAL HARBOR, Md.--Though the Air Force is interested in a eventual multi-year "block buy" of F-

35A conventional variant aircraft, it won't be able to participate in one by fiscal year 2018 due to budget

"misalignment," according to a key officer.

F-35 Integration Office Director Air Force Maj. Gen. Jeffrey Harrigian on Monday cited two reasons for this

misalignment: one is the Air Force has just about solidified its budget for FY '17 and would have to "crack" it

open to find the money necessary to participate in a FY '18 F-35 block buy.

The second reason, Harrigian said, is the continuing resolution (CR) currently hanging over the heads of

Congress and the federal government. He called this a "perfect example" of the budget misalignment preventing

a F-35 block buy in FY '18. The fiscal year ends Sept. 30 and lawmakers don't seem anxious to pass

authorization and appropriatons bills for FY '16. One consistent theme here at the Air Force Association's (AFA)

Air and Space conference has been service leaders hammering a potential CR as damaging to the Air Force.

"Naturally, we're interested in (the block buy)," Harrigian said. "There's certainly some benefit that would be

realized should we be able to execute that. Our challenge clearly though is the fiscal constraints that we're under

right now."

Under Secretary of Defense For Acquisition, Technology and Logistics (AT&L) Frank Kendall said in May the

Pentagon planned on seeking congressional approval for a three-year block buy of F-35s that could help drive

down prices of the aircraft. The buy would span FY's '18-'20 and include up to 150 jets per year. Both

international partners and foreign military sale (FMS) customers would be eligible.

By consolidating three years of orders into one contract, F-35 prime contractor Lockheed Martin [LMT] and

its suppliers could achieve economies of scale and produce aircraft more efficiently, which, in turn, cuts the cost

of the plane for customers. Kendall predicted "double-digit savings" were likely if a deal could be reached

(Defense Daily, May 29).

F-35 Program Grappling With Parts Management In Latest ALIS Software VersionBy Pat Host

NATIONAL HARBOR, Md. --The F-35 program is grappling with a parts management issue in its currently

fielded version of the aircraft's Automated Logistics Information System (ALIS) software, according to key

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WEDNESDAY, SEPTEMBER 16, 2015Page 1 58th Year, Volume 267, No. 54

Yearlong CR Would Force Air Force to Break KC-46A Contract with Boeing

By Valerie Insinna

NATIONAL HARBOR, Md. —The Air Force has set Sept. 25 as the new first flight date for its KC-

46A refueling tanker, but a long-term continuing resolution (CR) could spell more trouble for the

program, its program executive officer said on Tuesday.Under the current schedule, the KC-46A program will hit a Milestone C decision in April 2016,

after which it is scheduled to award contracts to Boeing [BA] for the first two lots of low-rate initial

production aircraft, said Air Force Brig. Gen. Duke Richardson, program executive officer for

tankers."LRIP Lot 2 is fiscal year 2016 funding, so if we get into a CR situation, it will create a very large

problem for this program” in that it will not be able to award a contract as planned for 12 aircraft, he

said during a speech at the Air Force Association’s Air and Space Conference.

Under the terms of its contract, the Air Force could buy anywhere from eight to 11 aircraft during

LRIP Lot 2 and pay a penalty to Boeing. However, buying fewer than eight aircraft would result in

the contract being broken, and a yearlong CR would only allow for the purchase of seven aircraft, he

told reporters after the briefing.“This contract that we have is a very nice contract in a lot of ways, but it's also fairly stringent in

terms of what it requires of the government,” he said. “It requires funding stability and requirements

stability. Up to this point we have delivered both.”Throughout his speech, Richardson stated that the service is struggling keeping the program on

schedule, not with the performance of the aircraft.Under the current contract, Boeing is required to deliver the first 18 tankers by August 2017.

Richardson said he was “cautiously confident” that the company would meet the “required assets

available” deadline, but noted that technical issues have eaten away all of the slack built into the

schedule.The service is preparing the first fully equipped KC-46A aircraft, called EMD2, for its inaugural

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THURSDAY, SEPTEMBER 17, 2015 Page 1 58th Year, Volume 267, No. 55Boeing Declines Divesting United Launch AllianceNATIONAL HARBOR, Md.--Boeing [BA] is not currently interested in divesting United Launch Alliance (ULA)--to Aerojet Rocketdyne [AJRD] or anyone else."Divesting ULA is not in our thinking at this time," Boeing spokesman Todd Blecher said Tuesday in an email. "We are committeed to remaining a leader in the space industry and ULA is a big part of that."

Blecher said Boeing has informed Aerojet Rocketdyne of its position on the rumored offer. Reuters reported Sept. 8 that Aerojet Rocketdyne submitted a $2 billion offer to acquire ULA from parent companies Lockheed Martin [LMT] and Boeing. Lockheed Martin spokesman Dan Nelson on Wednesday declined to comment on the reported offer.Aerojet Rocketdyne Vice President of Advance Space and Launch Julie Van Kleeck on Tuesday declined here at the Air Force Association's (AFA) Air and Space conference to confirm or deny the

report during a briefing with reporters. Aerojet Rocketdyne did not respond to a request for comment by press time Wednesday. ULA earlier this year rebuffed an Aerojet Rocketdyne overture to acquire the data rights to the Atlas V rocket, which ULA will eventually retire in favor of its next-generation Vulcan launch vehicle, of which it is teaming with Blue Origin.One space expert believed the strategy behind the rumored offer for ULA was to make it use Aerojet

Rocketdyne's AR-1 engine, of which the company is shopping for a customer. Shortly after the rumored offer made news, Blue Origin announced it signed an agreement with ULA to expand their

production capabilities for Blue Origin's BE-4 engine that will power the Vulcan next-generation launch vehicle.Nevertheless, Aerojet Rocketdyne is continuing its pursuit of additional work with ULA. Van Kleeck said Tuesday the company's AR-1 could go on the Vulcan. Aerojet Rocketdyne last year signed an agreement with ULA to provide a competitive cost estimate, schedule and risk management plan for the AR-1 engine as well as the RS-68, RL-10 and solid rocket motors (Defense Daily, Sept. 30).

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“As I look around the world today, there is no doubt in my mind that the United States is safe,” Milley said. “We have an excellent military. We have excellent police forces. We have excellent intelligence agencies and an excellent FBI. But having said that, the world outside the United States the velocity of instability is increasing as we sit here...There are a lot of things going on in the world today that present very real threats to the security of the United States.”

The Army will remain the core of the U.S. military’s ability to fight and win wars despite a continued emphasis in the Pentagon and on Capitol Hill to produce technologies that allow the military to fight from afar at sea and from the air, McHugh said.

“If the last 18 to 20 months haven’t proven the necessity of a viable land force, I don’t know what will,” McHugh said, referencing the yearlong air campaign against Islamic State militants. Military officials and civilian Defense Department leadership recognize the limited effects an air campaign will have and have said that a ground force–at the present without U.S. combat troops–offensive will be necessary to roll up the terrorist group in territory it already controls.

Milley doubled down on that notion, saying that precision weapons and technologically advance ships and aircraft are effective military tools, but that wars are fought and won by land forces.

“Americans have always had a heavy reliance on and a love for technology,” Milley said. “War is a very violent act and rather than expend human life–especially our own soldiers’ lives–we want to and we should, use the highest and most advanced technologies that we can in order to achieve our goals. The problem is history has told us a different story about the ability to prevail in war with only a reliance on weapon sys-tems that deliver effects from great distances…The first and opening shots of any conflict are likely fired from the sea or from the air, but the final shots are usually delivered on the ground.”

It is essential that the Army maintain its current capabilities and internalize the lessons of the past 14 years of war while preparing for a range of threats, Milley said. As the chief of staff, he has prom-ised to focus first on increasing the readiness of the total force. A close second priority will be shaping the structure, equipment strategy and training of the Army out to the 2040s, he said. That will require refocusing the Army’s training regimen from counterterrorism to a broader spectrum of possible contin-gencies.

“We do not have the luxury of a single particular place or opponent,” Milley said. “We are a global power. If we wish to remain a global power…we are going to have to operate across the entire range of military operations…and we have to be able to do that anywhere in the world.”

After nearly 15 years of ground combat, the Army is highly skilled in counterterrorism and counter insurgency operations. The Army must sustain those skills, Milley said. What the service needs is to reener-gize the atrophied skill of combined-arms maneuver warfare that would be necessary in a near-peer fight, he added. The Army’s Training and Doctrine Command (TRADOC) has already issued a plan that soldiers deploying to a named operation, like Iraq or Afghanistan, will train specifically for that contingency.

“Opposite a named operation, we are expecting our formations to go ahead and train against a hybrid threat,” Milley said.

Those troops need more and better equipment with which to face threats, as well, he said. The Army needs advancements in lethality, mobility, command and control, mission command systems and troop protection. n

Defense Daily (ISSN 0889-0404) is published each business day electronically by Access Intelligence, LLC • Managing Editor: John Robinson, jrobinson@accessintel.com • Business: Calvin Biesecker, calvinb21@aol.com • Congressional/Navy: Valerie Insinna, vinsinna@accessintel.com • Land Forces: Dan Parsons, dparsons@accessintel.com • Air Force Reporter: Pat Host, phost@accessintel.com • Editor Emeritus: Norman Baker • Director of Marketing: Kristy Keller, kkeller@accessintel.com • Publisher: Thomas A. Sloma-Williams, tawilliams@accessintel.com • SVP: Jennifer Schwartz, jschwartz@accessintel.com • Divisional President: Heather Farley, hfarley@accessintel.com • SVP Information Technology: Rob Paciorek • President & CEO: Don Pazour • To advertise in Defense Daily contact Jamila Zaidi at jzaidi@accessintel.com.

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Chinook Block 2 RFP Coming Early Next YearBy Valerie Insinna

The Army plans to release a request for proposals early next year for CH-47F Block 2, which will allow the service to operate the helicopter more affordably as it ages—an investment the service sees as critical, as it will be in the fleet until at least 2060.

The Block 2 changes “will let them buy back some performance, specifically payload,” Col. Rob Barrie, Army program manager for cargo helicopters, said Monday during a briefing at the Association of the U.S. Army annual meeting and symposium. Block 2 is not yet a program of record, but an advanced rotor blade made of composite materials, new drive train and new fuel cells will likely be introduced into the aircraft.

The service also wants to use it as an opportunity to make the conventional Army Chinook more com-mon with the special operations variant, the CH-47G, he said.

Milestone B and a contract award—presumably to original equipment manufacturer Boeing [BA]—is scheduled for fiscal year 2017. After that, a four-year engineering and manufacturing development phase would begin, with low rate initial production set for 2021.

Block 2 preparations currently are funded through a budget line for engineering change proposals, which are relatively consistent year to year, Barrie said. However, budget instability, including sequestra-tion or a longterm continuing resolution, could impact Block 2. “There may be challenges that we can’t see right now,” he said.

“The RFP release, we’re proceeding toward that. It’s in the very near future, and there are no plans to change that now,” he said. “That’s as good as the budget realities we have today. It will have to be reexam-ined if there are any changes, whether that’s sequestration or a CR.”

Instead of taking care of upgrades piecemeal through traditional engineering change proposals, the Army decided to group them together and do them along with planned recapitalization of older CH-47F models to save money, Barrie said.

Steve Parker, Boeing’s vice president of cargo helicopters, said the company had made “significant investments” in research and development funds to mature potential Block 2 technologies, such as develop-ing a new type of steel, but he declined to specify the amount of the investment.

There have been more than 340 deliveries of CH-47 F model, Barrie said.The company recently finalized a sale to India—the 16th Chinook customer— for 15 “F” models and

is looking for additional international buyers for the aircraft, Parker said. He predicts Boeing could sell more than 150 helicopters to foreign customers between now and 2020. Production of the aircraft could extend “well into the 2030s.”

The current multiyear contract, which wraps up in 2017, contains 30 remaining options for foreign military sales, Barrie said. “I think it’s safe to say that we anticipate we will exhaust those those 30 options in the remaining two years of procurement that we have.” n

Raytheon Debuts Laser-Guided Grenade RoundBy Dan Parsons

Raytheon [RTN] has scaled down the basic technology of a guided missile into a projectile that can be fired from a standard 40mm grenade launcher.

The new 17-inch Pike munition was successfully fired twice recently during flight tests at Mile High Resources, Texas. Both rounds landed within kill range of their targets after flying 2,300 yards, according to the company.

The munition is accurate enough to be used against both fixed and slow-moving targets, J.R. Smith, Raytheon’s director of advanced land warfare systems, told Defense Daily.

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6 Defense Daily October 13, 2015

“To understand a lot of how we were able to do this, you have to look no farther than your smart-phone,” Smith said. “The capacity to do computing with very small circuit cards allowed us to basically fit the technology of a seeking missile into this little grenade-sized rocket.”

The munition weighs about 1.7 pounds, which is considerably more than a conventional grenade, but packs three-times the punch, Smith said. The round can be loaded into a standard tube-style 40mm grenade launcher such as the M320 or enhanced grenade launching module (EGLM). The electronic system is only about the size of a roll of quarters, Smith said.

Pike uses a small powder charge to launch into the air, then ignites a rocket engine once it is at a safe distance from the launcher, about 10 feet in the air. The launcher or another soldier then uses a targeting laser to guide the munition–-equipped with a digital, semi-active seeker in the nose--in flight to the target.

The Army has no specific requirement for a smart grenade, but is generally in the market for precision munitions along the line of its Excaliber smart artillery shells, which deploy fins in flight and correct their path on the way to a predetermined target. Representatives of the Army witnessed the recent Pike flight tests and expressed interest in further testing the weapon, Smith said. The company is in the process of getting the munition qualified for operational testing next year and is in discussion with officials from the Army’s Huntsville [Ala.] and Picatinny [N.J.] arsenals to “determine the way ahead,” he said.

“Thusfar it has been strictly internal investment anticipating the Army’s need for this capability,” Smith said. “We’ve got some adversaries that have same pretty effective, in not particularly sophisticated weapons. We are trying to provide a capability that outranges and is more accurate that rocket propelled grenades, for instance.” n

JLTV Winner Oshkosh Introduces New MRAP TechnologiesBy Dan Parsons

Oshkosh [OSK] today unveiled a 6-wheeled version of its mine-resistant, ambush protected all-terrain vehicle (M-ATV), increasing the truck’s payload capacity and improving the vehicle’s off-road steering capability.

The M-ATV 6x6 Technology Demonstrator, on display at the Association of the United States Army’s annual exposition in Washington D.C., has an interior that can accommodate up to 15 soldiers, as well as greater payload capacity and all-wheel steering for improved maneuverability over the M-ATV that troops are familiar with from use in Afghanistan.

Oshkosh recently won a $6 billion contract for the Joint Light Tactical Vehicle program to replace most of the Army and Marine Corps Humvee fleets. The winning vehicle is a four-wheeled, scaled-down version of the M-ATV.

“It’s never been more important for troops to have vehicles that effectively balance protection, pay-load, modularity and mobility to carry out missions in any environment or threat level,” said John Urias, executive vice president of Oshkosh Corp. and president of Oshkosh Defense, said in a statement. “The M-ATV 6x6 Technology Demonstrator was developed to transport a full squad with their required mission equipment and provide more power on the battlefield–all while maintaining MRAP level protection and off-road mobility.”

The vehicle’s independent suspension and all-wheel steer allow it to traverse difficult terrain much like a tracked vehicle.

Another, 4-wheeled M-ATV on display at AUSA is outfitted with a light-vehicle specific version of the Rafael Trophy active protection system (APS) called the Trophy LV. Trophy incorporates situational aware-ness and active protection “hard kill’ systems that detect incoming threats to the vehicle and automatically deploy countermeasures to destroy projectiles like rocket propelled grenades.

“The operational requirement to equip armored vehicles with an APS is dictated by the growing prolif-

October 13, 2015 Defense Daily 7

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eration of advanced anti-armor weapons,” Rafael said in a statement. “Trophy-LV has the proven capabil-ity to defeat advanced threats coupled with handling all safety considerations of an autonomous shooting system, an issue that has raised concerns among potential customers for many years.”

The basic Trophy model is in current use by Israeli combat brigades on Merkava IV tanks and has effectively performed in combat since its introduction in 2009. The system provides 360-degree protection from all incoming anti-armor threats and the LV version is light enough to integrate easily onto wheeled combat vehicles.

The 4X4 M-ATV also is equipped with Rafael’s Samson remote controlled weapon station, which interfaces with the Trophy’s hostile fire detection system and allows the crew to aim and fire a top-mounted machine gun without exposing themselves to enemy fire.

Oshkosh also has developed what it calls advanced driver assist system (ADAS) kits that can be ret-rofitted onto existing vehicles. The kits come in three tiers and each increases driver control and response, the company said.

ADAS Tier 1 includes a camera “that allows the vehicle to see where drivers cannot.” The system is able to detect obstacles and alert the driver to avoid collisions.

The second tier introduces an electronic stability control and anti-collision radar. It also includes adap-tive cruise control that can not only maintain a desired speed, but can match speed and maintain a specific distance from a leading vehicle in convoy. Collision mitigation braking (CMB) automatically applies the brakes if a collision is imminent.

The third tier includes technologies from both tier 1 and 2 and has the most “comprehensive” suite of accident-avoidance capabilities, the company said. n

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House Passes NDAA that Champions NNSA UpgradesHouse-Approved FY ’16 NDAA Would Authorize $345M for MOX; ProgramStill Faces ChallengesCongress Passes 10-Week Continuing Resolution That Fixes NNSA Fundingat FY 2015 LevelFormer Y-12 Employee Files Retaliation Complaint Against BWXTPantex Labor Negotiations Put on PauseHASC Chair Asks DOE to Re-Evaluate Pantex Workers’ Benefits, Blasts“Deplorable” Plant FacilitiesLLNL Pays $37.3M to Settle Lawsuit from Laid-Off WorkersNRC Inspecting Criticality Safety Incident at BWXT FacilityNNSA: U.S. Team to Visit Category I Foreign Site Hosting HEU Within 6MonthsNNSA Adds General Atomics to Mo-99 Cost-Sharing AgreementNNSA Seeks Industry Comments on Draft RFP for Nonproliferation ProjectNNSA Repatriates Russian-Origin HEU, Making Uzbekistan HEU-FreeFormer LLNL Director Honored With New AwardAt LivermoreAt Oak RidgeWrap Up

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