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1 SAS Special Show Coverage Day 2 Defense Daily Roughead: Frigates Must Go By Emelie Rutherford The Navy s top officer said yesterday the service must proceed with plans to retire frigates so it can pay bills tied to manpower and new littoral ships. Chief of Naval Operations Adm. Gary Roughead was asked at the Navy League s Sea Air Space conference if, when weighing total ownership costs, the service should consider extending the lives of 30 FFGs nearing the ends of their service lives. In Congress, House Armed Services Seapower subcommittee Chairman Gene Taylor (D-Miss.) has pushed the Navy to keep using two of three frigates set to be retired, to bolster the size of the service s fleet (Defense Daily, April 22). It has become a bit topical lately, Roughead said yesterday about FFG retirements. Yet he emphasized the budget realities facing the Navy during the U.S. economic downturn, including high manpower costs tied in part to operating a fleet that s very, very active. To not be able to remove ships on plan, there s only one place where you go to get that money, and that s procurement, he said. So if you want to extend the ship for a couple of more years, you have to make the decision, are you not going to build anything new. He said even though the FFGs have served us very, very well, it is time to take them out of service. We have a good replacement in the form of the Littoral Combat Ship, regardless of which variant is selected in a current contract competition between Lockheed Martin [LMT] and General Dynamics [GD], Roughead said. That s where we need to be focused. Hanging on to the old stuff will preclude us from getting to the new. Taylor has talked about trying to help the Navy with manpower costs--which greatly concern Roughead--to delay some frigate retirements. Coast Guard Commandant Adm. Thad Allen, who spoke with Roughead at the National Harbor, Md., conference, added his service would not have a use for the FFGs. That s because the Coast Guard needs ships that travel without oilcarrying vessels, which the FFGs require, and instead uses ships that can carry more fuel, Allen said. Continued on page 3 Visit us at the SAS Show May 3-5 Booth 1401 Day 2 Monday May 4, 2010 Schedule Of Events 8:00am - 4:30pm Attendee Registration Desk Open Exhibit Hall Level (Hall E) 9:30am - 4:45pm Exposition Open 10:00am - 11:15am Professional Development Seminar Panel: "Smart Power: Haiti" Potomac C Moderator: Mr. Richard C. Macke Speakers: Vice Admiral Adam M. Robinson, Jr., USN, Medical Corps, Surgeon General Chief, Bureau of Medicine and Surgery; Rear Admiral Mark H. Buzby, USN, Commander, Military Sealift Command; Rear Admiral Samuel Perez, Jr., USN; Deputy Director, Joint Interagency Task Force (FIATF); U.S. Southern Command (SOUTHCOM); Ms. Susan Reichle, Deputy Assistant Administrator, Bureau for Democracy, Conflict and Humanitarian Assistance, USAID; Rear Admiral Ted N. Branch, USN, Commander, Carrier Strike Group One; Rear Admiral Philip H. Greene, Jr., USN, Director, Navy Irregular Warfare Officer 11:25am - 11:55am Sea-Air-Space Floor Speaker Navy League Booth #146 Presentation of the Navy League's Maritime Policy Statement Mr. James Offutt, Chairman of the Maritime Policy Committee, NLUS 12:00pm - 1:30pm Sea Services Luncheon* - Potomac A Speaker: The Honorable Dr. Ashton B. Carter, Under Secretary of Defense for Acquisition, Technology & Logistics 1:45pm - 2:15pm Sea-Air-Space Floor Speaker Navy League Booth #146 Continued on page by Access Intelligence, LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $100,000 for violations.

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3 May 4, 2010 Defense Daily 3 Continued from page 1 The FFGs in their time did exactly what they needed for the Navy, as will the Littoral Combat Ship, the Coast Guard leader said. n Gates: Reset Costs Will Squeeze Ship Procurement By Marina Malenic As the wars in Iraq and Afghanistan wind down, the cost of replenishing land forces equipment and caring for veterans will keep the Pentagon s shipbuilding budgets stagnant, Defense Secretary Robert Gates warned yesterday. It is important to remember that, as the wars recede, money will be required to reset the Army and Marine Corps, which have borne the brunt of the conflicts, and there will continue to be long-term and inviolable costs associated with taking care of our troops and their families, Gates said during a speech to the Navy League s Sea-Air-Space conference. In other words, he said, I do not foresee any significant top-line increases in the shipbuilding budget beyond current assumptions. Gates called into question several major weapon acquisitions: the Marine Corps Expeditionary Fighting Vehicle, a next-generation submarine program and procurement of additional aircraft carriers. He said the department is studying where it would be necessary or sensible to launch another major amphibious landing, particularly in light of advances in anti-ship systems. And he said that current plans for 11 carrier strike groups through 2040 might be excessive. Consider the massive over-match the U.S. already enjoys. Consider, too, the growing anti-ship capabilities of adversaries, he said. Do we really need 11 carrier strike groups for another 30 years when no other country has more than one? Gates also questioned whether the country can afford an $85 billion Ohio-class ballistic-missile submarine replacement program. The Navy wants to buy 12 SSBN(X) submarines from FY 19 to FY 33 at a cost of $6 billion to $7 billion each. That figure accounts for approximately half of the service s annual shipbuilding budget. We simply cannot afford to perpetuate a status quo that heaps more and more expensive technologies onto fewer and fewer platforms, thereby risking a situation where some of our greatest capital expenditures go toward weapons and ships that could potentially become wasting assets, Gates said. Furthermore, he warned, potential adversaries are aware of the United States overwhelming advantage in conventional conflicts and that none of them intends to bankrupt themselves by challenging the U.S. to a shipbuilding competition akin to the Dreadnought race prior to World War I. Given that new reality, he said the department is looking to shift investments towards systems that provide the ability to see and strike deep along the full spectrum of conflict. Specifically, the Pentagon wants to: Extend the range of naval forces by devoting more resources to long-range drones and intelligence, surveillance, and reconnaissance systems. Build new sea-based missile defenses. Expand the role of its submarine force, making it capable of conducting more missions deep inside an enemy s battle network. Finally, Gates warned that defense budget expectations are intrinsically linked to the overall financial and fiscal health of the country. And in that respect, he said, we have to accept some hard fiscal realities. n Continued from page 1 Rear Admiral Kurt Kunkel, USN, Commander, Defense Energy Support Center 2:30pm - 4:00pm Professional Development Seminar Panel: "Energy: The Next Wave Potomac C Moderator: Dr. Larry Skogen Speakers: Alan R. Shaffer, Principal Deputy Director, Defense Research and Engineering, Department of Defense; Vice Admiral David P. Pekoske, USCG, Vice Commandant, US Coast Guard; The Honorable Jackalyne Pfannenstiel, Assistant Secretary of the Navy (Energy, Installations and Environment); Mr. R. James Woolsey, Jr., Venture Partner, VantagePoint Venture Partners; Admiral Jonathan W. Greenert, USN, Vice Chief of Naval Operations 3:00pm - 8:00pm Reception and Dinner Registration Exhibit Hall Level (Hall E) 4:15pm - 4:45pm Sea-Air-Space Floor Speaker Navy League Booth #146 Rear Admiral Ronald Rabago, USCG Assistant Commandant for Acquisition 6:00pm - 7:45pm Dinner Reception* Exhibit Hall 8:00pm - 10:00pm Sea-Air-Space Dinner* (Black-tie) Potomac A Speaker: ADM Thad Allen, USCG, Commander of the United States Coast Guard Presentaion of Fleet Admiral Chester W. Nimitz Award and the Albert A. Michelson Award

4 4 Defense Daily May 4, 2010 Navy s Effort To Control Total Ownership Cost Goes Beyond Platforms By Geoff Fein While the Navy is taking significant steps to reduce the total ownership cost (TOC) of its aircraft, ships and submarines, the service is also working to examine more closely where it can save money across the enterprise. Although these efforts are not new, the difference is that the Navy is attempting to put together these efforts in a more organized manner, trying to mainstream them and spread the word on what works, Vice Adm. Kevin McCoy, commander Naval Sea Systems Command (NAVSEA), told Defense Daily recently. One of the things Brian (Persons) and I have been working on this year, in particular, one of our strategic items for FY 10, is to make TOC awareness part of every employee s job at NAVSEA, and that s about 60,000 people, he said. McCoy and Person, the executive director, NAVSEA, have been looking at, for example, how the organization with such a varied and vast workforce understands what total ownership costs are, what NAVSEA s expectations are, and the fact that no matter where someone is in NAVSEA they have a role in helping the Navy reduce total ownership cost, McCoy said. We have made it part of our specific strategic business plan and in fact this year made it an evaluation criteria, a performance evaluation, of our people, McCoy said. Recently, McCoy and Persons honored a group of eight from Naval Surface Warfare Center Dahlgren, Va. Each individual received approximately $3,000 for saving the Navy $300,000 annually, McCoy noted. They said, we have a lot of telephones around here that are not in full use. In fact, going around the organization they were able to turn off 1,000 lines, McCoy noted. That s a $300,000 a year savings immediate to the organization. McCoy is looking to extend that effort to all of NAVSEA s field activities. That s a great example of how cost savings opportunities are all around us, he said. That was a result of a number of years of reorganizations and movements in the organization, when people went back and said what is our piece of total ownership cost? These were not necessarily folks involved in a new acquisition program or anything like that. Sean Stackley, assistant secretary of the Navy, research, development and acquisition, has said he wants every NAVSEA engineer to be a cost engineer. McCoy noted. I think that goes right to the heart of this whole thing--about what is your obligation when you come to work for the U.S. government everyday? Sure, you have a day job in terms of working on a program or supporting the fleet, McCoy said But you also have an obligation to understand where that next level of performance is both in performance as well as in cost reduction. McCoy pointed to another effort that led to upgrading ship air conditioning systems instead of buying new units. We recognized a group of folks from the Warfare Center in Philadelphia, ship engineering center Philadelphia, who instead of installing new air-conditioning units on a number of our ships said they can actually upgrade the exiting plants for a significant savings, McCoy said. And we, in fact, on one class of ships, are going to save $3 million and also reduce procurement time. About two years ago McCoy went out to the four public naval shipyards and asked the shipyard commanders if they were king for a day and could change processes that NAVSEA uses to work on the ships in the public shipyards what would they focus on to reduce cost with little risk to the outcome, McCoy said. We immediately got 100 suggestions, he added. Out of those 100 ideas, NAVSEA took a handful of items to work on, McCoy said. One of the questions looked at the in-depth process that every time a submarine comes in personnel do some ultrasonic tests to see crack propagation, McCoy said. We said, does the data allow us to reduce that inspection or can we look at the frame to hull welds without having to take off some of the coating on submarines, which is an expensive process, he said. Continued on page 6

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6 6 Defense Daily May 4, 2010 Continued from page 4 Through that process of actually one person asking that question and us doing that rigorous detail and analysis, we were actually able to save about $32 million over the life of 688 submarines by changing our process, he said. Persons told Defense Daily it is easy to get caught up in the programmatic part of total ownership cost. To me, total ownership cost you have to make it a real thing. Really, it comes back to everything we do and touch in this command; there is a cost associated to it, he said. What I tell people is we have to understand cost everywhere we are at. That starts to accumulate and add up to these total ownership costs you see in programs. It starts to drive the paradigm down to people that everything we touch, everything we do, has a cost associated with it, and we have a stewardship responsibility of being mindful about understanding that cost and understanding about how to control those costs, Persons added. n Dependence On Fossil Fuel A Strategic Vulnerability, Navy Secretary Says By Ann Roosevelt The Secretary of the Navy is trying to change how the service gets and uses energy, with a series of initiatives aimed at reducing the sea-services dependence on international fuel sources. We are too simply too dependent on foreign fossil fuels, Navy Secretary Ray Mabus said in a speech at the National Press Club April 30--the Navy s 212th birthday. We would not allow our warships or our weapons to be built by the countries that we do allow our ships to be powered by their fuel, for example he said. This is a strategic vulnerability for us and one that has to be addressed. It s a matter of strategic independence and a matter of national security, he said. For example, now, the Navy uses about one-third of the Defense Department fossil fuel requirement, which itself is part of the 2 percent federal government share of fossil fuel use in the United States. Beyond the strategic implications of energy dependence, there is the tactical aspect, he said. For example, to move a gallon of gas to a Marine on the front lines in Afghanistan, the gallon has to be put on a tanker, cross the Pacific Ocean, land, be put on a truck and then driven as part of one of the most dangerous missions today--a convoy--to Afghanistan and on to the Marine who needs the gas. We lose Marines and sailors in convoys, Mabus said. And we take Marines away from what Marines should be doing, fight, engaging Reducing the energy demand and producing what is possible locally, then Marines can be more effective. For example, there is a solar-powered water purifier in use in Afghanistan, he said. Mabus has set five goals for reducing Navy dependence on foreign fuel, and the biggest goal is to cut service energy usage in half in a decade. Another goal is in a decade to have half of its bases at net zero, he said. China Lake, for example, is powered by geo-thermal energy, and produces more than it needs, pushing the extra into the local power grid. Also, last month a Navy F/A-18 Super Hornet flew with a biofuel blend of JP-5 and a camelina oil (Defense Daily, April 26). These types of efforts are enhanced by Navy partnerships with others, such as the Department of Agriculture. In January, Mabus said, the two departments signed a memorandum of agreement to coordinate research and work together on alternative fuels. Such efforts help the American farmer, he said. The flowering Camelina plant could be grown in all the states. There s a lack of infrastructure to deliver such alternative fuels, he said, but to take a line from the Movie Field of Dreams, if we create the market the infrastructure will come. The Navy is also looking at hybrid electric ships, such as the USS Makin Island (LHD-8), which has an electric drive to use at 10 knots or less, Mabus said. The ship made a transit from Pascagoula, Miss., around South America Continued on page 8

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8 8 Defense Daily May 4, 2010 Continued from page 6 to its home port of San Diego and saved almost $2 million in fuel. Over the life of the ship, the service estimates it could save about one-quarter of a billion. While there are naysayers for energy saving as there has been for every major move the Navy has made, from sail to steam to present day energy issues, critics have always been wrong. This time they will be wrong again, Mabus said. n Northrop Grumman, Textron Team On Medium Range UAS For Navy By Calvin Biesecker Northrop Grumman [NOC] and Textron s [TXT] Bell Helicopter division have teamed to develop and demonstrate a new medium-range vertical unmanned aircraft system (VUAS) called Fire-X that will be offered for a planned two-year Navy demonstration program that begins in FY 11. Fire-X will be based on Bell s manned 407 single-engine helicopter, which has a 300 nautical mile range and is used for commercial, emergency medical services, law enforcement and utility applications, and Northrop Grumman s architecture for its MQ-8B Fire Scout vertical UAS. The Fire-X system integrates Northrop Grumman s proven unmanned systems know-how with a proven, FAA (Federal Aviation Administration)-certified helicopter airframe that s been in service since 1996, Gene Fraser, sector vice president and general manager for the Advanced Programs and Technology division of Northrop Grumman s Aerospace Systems sector, said in a statement. The result will be an affordable, fast-fielding system that delivers the maturity of the unmanned systems architecture developed by the U.S. Navy s MQ-8B Fire Scout program, while giving military services the extra UAS cargo, payload and endurance they need. The two companies have been developing Fire-X since the beginning of this year and conducted a design review last week, Martin Peryea, director of Bell Helicopter s XworX unit, told Defense Daily yesterday. He described the design as low risk and said the integration of the Fire Scout architecture into the Bell 407 will be straight forward. Modifications are being done to the aircraft now which in turn will lead to ground runs in anticipation of first flight by the end of Northrop Grumman is developing the Fire Scout tactical UAS for the Navy and will integrate the aircraft s vehicle management system, which is a modular architecture that can control a range of sensor and communications payloads, into the Bell 407. The Fire Scout vehicle management system can work with the Bell 407s flight control system, which means it won t have to be recertified, Mike Fuqua, director of business development for Tactical UAS at Northrop Grumman Aerospace Systems, told Defense Daily. The company also supplies the Bat and Hunter UAS systems and the BQM-74 aerial target. Fire-X will add to Northrop Grumman s portfolio of UAS systems that meet existing and emerging requirements, Fuqua said. In addition to Fire Scout, Northrop Grumman makes the Global Hawk high altitude and long endurance UAS for the Air Force and is developing a version of the system for the Navy s Broad Area Maritime Surveillance program. Compared to Fire Scout, Fire-X will offer greater payload capacity, range and endurance, Fuqua said. The companies said that Fire-X will be able to host payloads up to 3,000 pounds for flights lasting more than 14 hours and will be able to haul over 2,600 pounds of cargo externally. The companies also said the new vertical UAS system will be able to operate with most current and future military control systems, such as the Navy s Tactical Control Station used aboard ships and the Army s One System ground control station that is also used by the Marine Corps. n DEFENSE DAILY (ISSN ) is published each business day in print and electronically by Access Intelligence, LLC Managing Editor: John Robinson, jrobinson@ accessintel.com Army/International: Ann Roosevelt, aroosevelt@accessintel.com Business: Calvin Biesecker, calvinb21@aol.com Congressional Reporter: Emelie Rutherford, erutherford@accessintel.com General Assignment: BC Kessner, bckessner@mac.com Navy/Marine Corps: Geoff Fein, gfein@accessintel.com Pentagon: Marina Malenic, mmalenic@accessintel.com Editor Emeritus: Norman Baker Director, Production : Tracey Lilly Senior Marketing Manager: Teri Fisher, tfisher@accessintel.com Associate Publisher: Jennifer Green-Holmes, jgreenholmes@accessintel.com VP & Group Publisher: 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 Jennifer Green- Holmes at jgreenholmes@accessintel.com. To subscribe, contact clientservices@accessintel.com or 1(301)

9 2010 Access Intelligence, LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines up to $100,000 for violations Access Intelligence, LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines up to $100,000 for violations Access Intelligence, LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines up to $100,000 for violations. GET 10 ISSUES OF DEFENSE DAILY FREE! Complete and return this order form today, and you ll get 10 FREE issues that s 2 full weeks of access to the latest defense industry developments. Defense Daily is the only daily that combines in-depth analysis, immediacy and accuracy with comprehensive coverage. Capture need-to-know news direct from the Pentagon, NASA, Capitol Hill, Wall Street, and the White House. Gain a powerful competitive advantage by: Pinpointing new business leads. Gaining solid market awareness. Gathering insider intelligence and analysis. Making better-informed decisions. Scooping the competition. Positioning yourself for profit. Defense Daily is the definitive source for the hottest issues in the defense and aerospace markets. Put every issue to work for you today! Celebrating More Than 50 Years Defense Daily The Daily of Aerospace and Defense Celebrating More Than Defense Daily The Daily of Aerospace and Defense monday, APrIL 19, 2010 Page 1 53rd year, Volume 246, No. 12 DEFENSE WATCH The Latest Word on Trends And Developments In Aerospace And Defense Cyber Caution. National Security Agency Director Army Lt. Gen. Keith Alexander, President Barack FrIDAy, AprIL 16, 2010 page 1 53rd year, Volume 246, No. 11 Obama s nominee to head the new Cyber Command, has had his long-stalled SASC confirmation hearing. EADS North America Unveils Next Step For Lakota Celebrating Helicopter More Committee Than chairman Sen. Carl Levin (D-Mich.) says on April 15 the committee delayed the hearing because careful 50 Years scrutiny of the new command was needed. He notes that while combatant commanders By Ann Roosevelt usually respond to attacks that affect their forces in theater, responses and initiatives in cyberspace could FORT WORTH, Texas--EADS North America yesterday announced that with team members have extremely broad and damaging consequences, and in the future may require rapid decision-making. American Eurocopter and Lockheed Martin [LMT] it will build on its successful UH-72A Lakota helicopter In this context, he adds, some have expressed concern about an officer without strong career experience and fund and develop three Armed Aerial Scout (AAS) 72X technology aircraft. in commanding combat forces serving as a sub-unified combatant commander. Faced with that complex At the Army Aviation Association of America Defense annual conference here, EADS NA CEO Sean O Keefe situation, the said such a move is not the norm for a company of this size--eads is the largest aerospace company in the Daily committee proceeded methodically to gain an understanding of what the Congress is being The asked Daily to approve of Aerospace and what the and key Defense cyberspace issues are that need to be addressed. world. This is unusual--the entrepreneurial spirit of a company this size, he said. At the same time, EADS TueSdAy, APril 20, 2010 Page...Appropriate 1 Proceeding. 53rd year, SASC Volume staff 246, held No. numerous 13 meetings with Pentagon officials on a host of takes such steps in its wide range of areas. policy and operational issues associated with Cyber Com and military and intelligence operations in The technology demonstrators would be built on the UH-72A Lakota, which in March delivered its Hill Scrutinizing Push To Fix cyberspace, Humvees Over Levin Buying says. The Anewpanel has been assured the Obama administration is committed to rapidly 100th aircraft to the Army. By Emelie Rutherford closing the cyberspace policy gap and the Pentagon is proceeding with appropriate caution and care The technology demonstrators would be used to fulfill Lawmakers the Army s are weighing armed aerial a new scout Pentagon helicopter request regarding to reprogram military operations hundreds of in cyberspace, millions of dollars he adds. SASC Ranking Member John McCain (R-Ariz.) requirements that remain unfilled in the wake of two initially terminated pegged for programs: buying new the Bell Humvees Helicopter to instead Textron refurbish says since existing Cyber copies Command of the was trucks. created last year he also has had concerns about ensuring that the role, [TXT]-Boeing [BA] RAH-66 Comanche helicopter and Bell s Some Armed lawmakers Reconnaissance are said to have Helicopter reservations (ARH). about mission, approving legal authorities the Pentagon s and rules request of engagement to reprogram that Cyber Command will employ are well thought out Comanche was killed because it was considered a $560 Cold million War relic within and the ARH Army s was coffers a casualty to recapitalize of cost and and nearly understood. 8,000 of the McCain AM General-built says the SASC vehicles, has made which progress in achieving greater clarity in this regard and scheduling problems. the Army plans to stop buying. Alexander is well-qualified for this new assignment. The requirement still remains to fulfill an armed aerial The scout request role to able reallocate to cope the with Humvee evolving monies mission is part of a 34-page proposal from the Pentagon to scenarios now and in future conflicts. Such a new helicopter reprogram would $2.8 billion also allow in already the retirement appropriated of the fiscal aging year 2010 and 2009 funding. The Pentagon sent the April OH-58 Kiowa Warriors, which have been receiving performance 8 reprogramming upgrades action over to the the past Senate few and years. House armed LHD services Escalation. committees A March and 30 defense Pentagon appropriations internal reprogramming shifts $6 million within the Navy s Operational later this year, the first AAS-72X subcommittees will be used for last mission week. equipment Any of the and four weapon panels system can deny shipbuilding portions account of the money-shifting to cover escalation request. charges with the USS Makin Island (LHD-8) amphibious ship, integration, performance testing and survivability validations. The request seeks to reduce the Army line item which for procuring Northrop Grumman Humvees by Shipbuilding $573.3 million, built and in Pascagoula, to Miss. In accordance with the terms of the O Keefe said the approach is low-risk, combining instead mature, allocate developed $560 million technologies to two existing with the programs current LHD-8 to recapitalize construction soft-sided contract, and the up-armored Navy is responsible Humvees. to pay contract escalation incurred through the month production Lakota. Funds are required to support the recapitalization that the to contract rebuild reaches and upgrade contract approximately ceiling price, 7,700 the Navy says in a statement. Because of a recent indices Taking the Lakota base aircraft and moving High to an Mobility armed scout Multipurpose role is no leap Wheeled of faith. Vehicles (HMMWVs)--consisting revision by the Bureau of both of utility Labor (non-armored) Statistics, our and liability increased to pay for an additional two months This is the next logical step, said David Haines, up-armored vice president variants of that Rotorcraft will remain programs, in the EADs inventory NA. of for contract 20 years escalation. and can be Shipbuilder distributed escalation throughout costs the are attributed to Hurricane Katrina because of the The Lakota is a very capable, technologically advanced Army, aircraft. the reprogramming document states. More than associated 5,000 non-armored schedule impact. Humvees The are $6 intended million was to go initially to intended for DDG-51 destroyer construction that Team partner American Eurocopter will assemble the Army the AAS-72X National Guard in Columbus, and Army Miss., Reserve, where it Lakotas notes. was impacted by the hurricane. Actual DDG-51 Program Hurricane Katrina impacts were less than initial are currently being built. The Army determined it exceeded its Humvee requirement estimates, the after Navy conducting says. a portfolio review of its Lockheed Martin will supply and integrate acquisition the mission of equipment the vehicles, package. service It Secretary has also John created McHugh a said last month. high-fidelity systems integration lab for the mission equipment So we ve package just at executed is Orlando, a termination Fla., facility. to that contract, not an immediate termination but a drawdown No New Ice. The Coast Guard will call for rehabbing existing Great Lakes icebreakers in a forthcoming that will exercise the option of the contract, McHugh told the House Appropriations Defense subcommittee report to Congress, outgoing Commandant Adm. Thad Allen tells the SAC-HS April 14. Our position is on March 23. We ll procure several thousand more, 2,662 in fact, in the coming months and then some Cyber Intrusions Into Critical Infrastructure Growing, Official Says By Geoff other-than-army Fein sales, about 8,995. And after that we expect the Humvee to still be a part of our vehicle Determining how best to defend against the increasing fleet, but it number will be of much probes adjusted and attacks in its activity the Department based on what we ve experienced in Afghanistan. of Defense is seeing, particularly this year, was one of the big The issues April that 8 reprogramming led to establishing request a United states States the $573.3 million can be taken from the Humvee Cyber Command (USCYBERCOM), according to a procurement top military line official. item because of lower than expected battle losses and the need for fewer replacements. One of the underlying principles that the Secretary The of Defense Army estimates (Robert Gates) AM General s had for Humvee standing production up line can stay open until at least the end of 2013, McHugh said last month, adding that date could be extended if the company is tapped to recapitalize the vehicles. The service is considering creating a new Humvee recapitalization program, distinct from the two current efforts, that would have AM General and other companies compete to recapitalize up-armored Humvees and outfit them with enhanced explosive-deflection features. The Army sought $1.3 billion in FY 10 for buying 8,120 Humvees, but requested no monies for buying any of the vehicles in FY 11, which starts Oct. 1. Defense-spending watchers said the Humvee reprogramming request is not a surprise. It was inevitable that the Army would begin targeting excess 2010 Humvee fresh production for other immediate requirements, said defense analyst Jim McAleese of McAleese & Associates in McLean, 50 Years Sign up for your free issues today by filling out and faxing this form to , or mailing it to: Client Services Access Intelligence, LLC 4 Choke Cherry Road, 2nd Floor Rockville, MD DEFENSE DAILY TRIAL ORDER FORM Yes! Please send me 10 FREE issues of Defense Daily TODAY! To begin your FREE trial simply complete and fax the form below to and mention trial code SAS10. I m already convinced. Please sign me up for a subscription to Defense Daily TODAY! I ll receive my 10 FREE issues plus, the special Show Rate of $2097 for a one-year subscription of 245 issues. That s $ off the regular one-year subscription rate! IMPORTANT MONEY BACK GUARANTEE if I am ever dissatisfied with my subscription I may cancel at any time for a 100% refund for any unmailed issues. 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10 10 Defense Daily May 4, 2010 Lockheed Martin Announces New Executive Appointments At Aeronautics Lockheed Martin [LMT] yesterday announced several new executive appointments at its Aeronautics segment, including naming a new chief for the F-35 Joint Strike Fighter program. Larry Lawson, who is currently executive vice president and general manager for the Air Force F-22 fighter program, will take over the same position on the F-35 program beginning June 7. With F-35 aircraft designs completed, 16 of 19 test aircraft delivered, all three variants of the F-35 in ground and flight test including critical milestones of the first F-35B vertical landing and first flight of the F-35 mission systems aircraft, it s an ideal time to transition leadership as we prepare for rapid growth of the program in the years ahead, Ralph Heath, executive vice president of the Aeronautics business, said in a statement. Lawson will be succeeding Dan Crowley, who will become chief operating officer of Aeronautics. Crowley led the F-35 program for Lockheed Martin since Taking over for Lawson on the F-22 program will be George Shultz, who has served as vice president and deputy general manager of the program since November n Navy Releases Aegis PSEA Draft RFP For Combat System Integrator By Geoff Fein The Navy last week issued its draft request for proposals (RFP) for the Aegis Platform System Engineering Agent (PSEA) including Advanced Capability Build (ACB) developer support for future development of the Aegis Weapon System (AWS) and Aegis Combat System (ACS). PSEA is the integrator function and a major step in the Navy's combat system open architecture efforts. "This is a huge step," Rear Adm. Terry Benedict, program executive officer integrated weapons systems, told Defense Daily recently. "We committed years ago that we'd increase competition." Benedict, who left IWS this week to become director, Strategic Systems Programs, said the release of the Aegis PSEA is what the team at IWS committed to do. "PSEA is responsible for end-to-end combat system performance; systems engineering configuration control, testing, training and logistics; integrating components developed and/or modified by other contractors; and providing technical support to in-service ships," according to the Navy's fifth quarterly open architecture report to Congress (Defense Daily, March 17). According to the solicitation (N R5120) at this is the first PSEA for the CG-47 and DDG-51 ship classes and other future surface combatants with a combat system that is an evolution of the Aegis Combat System. Lockheed Martin [LMT] developed and builds the Aegis Combat System. Besides Lockheed Martin, potential competitors include General Dynamics [GD] and Raytheon [RTN]. Your Ad Could Be Here!!! Advertise in Defense Daily's 2010 show issues at 2009 rates! Air & Space Conference and Technology Expo, Gaylord National Hotel, September 13-15, 2010 Modern Day Marine Military Expo, Quantico Marine Base, September 28-30, 2010 AUSA Annual Meeting, Washington Convention Center, October 25-27, 2010 Call Jennifer Green-Holmes at or at jgreenholmes@defensedaily.com to reserve your space today!

11 Defense Daily s 2010 Summits & Conferences 2010 Cyber Security Summit June 11, 2010 Washington Marriot Metro Center Washington, D.C. /2010CyberSecuritySummit Military Avionics Architecture Conference The Challenges & Complexities of Open & Secure Systems September 21-22, 2010 J.T. Daugherty conference Center Lexington Park, MD /MilitaryAvionicsArchitecture 2010 Open Architecture Summit November 18, 2010 Washington Marriott Metro Center Washington, D.C. /2010OpenArchitectureSummit Visit the event website for details and to register! Use Discount Code Early and Save $

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