June 2021 the Magazine in Augmented Reality

The Feud Over Long-Range Fires n CMMC Special Report

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Story 30 PAGE8 n The Air Force’s PAGE10 F-35A joint strike PAGE29 fighter is once again embroiled in con- PAGE30 troversy as questions emerge about costs, the future employment of the aircraft and how many the service needs for high- end fights. As the Pentagon, lawmakers and some of the nation’s top defense contractors appear to be at odds over how best to move forward with the fifth-generation aircraft, the jet continues to be dogged by a number of issues. Cover: Air Force photo by Tech. Sgt. Jensen Stidham

Long-Range Fires 28 n Air Force and Army leaders are divided over which branches of the military should be investing in long- CMMC range strike capabilities. The Special outcome of the dispute has major implications for service Report 36 budgets and warfighting roles. n Contractors have a number of questions about the Defense Department’s Cybersecurity Maturity Model Certification program implementation. 8 In this special report, National Defense answers FAQs on what companies need to do to comply and be certified at the 4 10 12 proper level to remain competitive and more secure against adversaries.

J U N E 2 0 2 1 • NATIONAL DEFENSE 1 VIEWPOINTS 34 Transition to New F-35 Logistics June 2021 System Hits Headwinds volume cv 16 Microelectronics: A Critical The pursuit of an improved logistics system number 811 National Resource for the fighter jet is facing setbacks. The nation relies on parts made offshore, BY JON HARPER which are in many cases single sourced. EDITOR IN CHIEF BY ALAN R. SHAFFER, CHRIS TOFFALES AND CMMC SPECIAL REPORT Stew Magnuson MONIQUE D. ATTAR 36 The Pitfalls of Factoring in (703) 247-2545 17 Security for Telework, Security and CMMC Costs [email protected] New cybersecurity requirements will impact CREATIVE DIRECTOR BYOD and Beyond other metrics relevant to defense contractors. What started as a temporary solution for the Brian Taylor BY MICHAEL TOMASELLI AND Defense Department is here to stay. CHARLES BATTAD (703) 247-2546 BY BOB STEVENS 38 Addressing Solicitation, [email protected] 18 NDIA Announcement New Report to Describe Incentives in Contract Performance MANAGING EDITOR Resourcing Processes Contractors are scrambling to gain answers to Jon Harper BY JON ETHERTON AND JACOB WINN a number of important questions surrounding (703) 247-2542 the CMMC program. [email protected] FEATURES BY SUSAN WARSHAW EBNER AND ROLANDO SANCHEZ SENIOR EDITOR

MILITARY ELECTRONICS 39 CMMC: More Frequently Yasmin Tadjdeh (703) 247-2585 20 Semiconductor Shortage Shines Asked Questions Light on Weak Supply Chain Questions from NDIA members about the [email protected] The manufacturing of microelectronics is Cybersecurity Maturity Model Certification. STAFF WRITER now concentrated in places such as Taiwan Mandy Mayfield and China. DEPARTMENTS (703) 247-9469 BY YASMIN TADJDEH 4 NDIA Perspective [email protected] ADVANCED MANUFACTURING It’s Time for a Fresh Look at Resourcing 22 Military Looks for Novel Ways to Defense EDITORIAL ASSISTANT Employ 3D Printing BY HAWK CARLISLE Meredith Roaten (703) 247-2543 A variety of programs are proceeding. 6 Up Front BY MEREDITH ROATEN Random facts and figures from industry and [email protected] INDUSTRY PERSPECTIVE government BY STEW MAGNUSON 24 American Resurgence Possible National Defense With Additive Manufacturing 8 Editor’s Notes 2101 Wilson Blvd., Suite 700 The technology is critical to America’s future. BY STEW MAGNUSON Arlington, VA 22201

BY DAVID HANDLER AND BRETT B. LAMBERT 9 Emerging Technology Horizons New Institute Will Tackle the Tough COMMUNICATIONS NDIA MEMBERSHIP: Questions The National Defense 26 Army Fleshing Out Joint BY RECECCA WOSTENBERG Industrial Association (NDIA) is the pre- All-Domain Command, Control mier association representing all facets of 10 the defense and technology industrial base JADC2 has become a buzzword in the Budget Matters Who’s funding what in Washington and serving all military services. For more Pentagon as the armed services focus on BY JON HARPER information please call our membership digital bits and bytes to give them an edge in department at 703-522-1820 or visit us

fights against advanced adversaries. 12 News Briefs on the web at NDIA.org/Membership BY YASMIN TADJDEH BY MANDY MAYFIELD AND

MUNITIONS MEREDITH ROATEN National Defense 28 Sibling Rivalry: Military Services 14 Algorithmic Warfare (ISSN 0092–1491) In High-Stakes Tussle Over What’s coming in artificial intelligence, is published monthly big data and cybersecurity by the National Defense Industrial Long-Range Fires BY YASMIN TADJDEH Association (NDIA), 2101 Wilson Blvd., It remains to be seen how the high-profile Suite 700, Arlington, VA 22201–3060. TEL 40 NDIA Policy Points (703) 522–1820; FAX (703) 522–1885. spat will play out. Advertising Sales: Kathleen Kenney, 2101 BY JON HARPER Unmanned Systems and the Future of War Wilson Blvd., Suite 700, Arlington, VA BY SEBASTIAN VISCUSO 22201–3060. TEL (703) 247–2576; FAX COVER STORY (703) 522–4602. The views expressed are 41 Ethics Corner those of the authors and do not necessarily 30 Turbulence Ahead? Questions reflect those of NDIA. Membership rates About Costs, Force Mix Could 42 Government Contracting Insights in the association are $40 annually; $15.00 Prepare Now for the $15 Minimum Wage is allocated to National Defense for a one- Spell Trouble for F-35A CONTRIBUTED BY COVINGTON & year association basic subscription and is Critics are once again taking aim at the joint BURLING LLP non-deductible from dues. Annual rates strike fighter. for NDIA members: $40 U.S. and posses- sions; District of Columbia add 6 percent BY MANDY MAYFIELD 43 NDIA News sales tax; $45 foreign. A six-week notice is required for change of address. Periodical 32 Wargame Yields Lessons for 44 NDIA Calendar postage paid at Arlington, VA and at addi- F-35 Employment in 2030s Complete guide to NDIA events tional mailing office. POSTMASTER: Send address changes to National DEFENSE, 48 Next Month 2101 Wilson Blvd, Suite 700, Arlington, VA 22201–3060. The title National Defense Preview of our next issue is registered with the Library of Congress.

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It’s Time for a Fresh Look at Resourcing Defense n “What are DoD’s priorities?” objective memorandum, or POM, for congressional consider- This is a question all National Defense Industrial Association ation as part of the president’s budget request. members ask, and one that every eight weeks Rachel McCaf- Insertion into the POM, too, can be very challenging, espe- frey, NDIA’s vice president for membership and chapters, and cially if an emerging program requires significant resources, Jon Etherton, NDIA’s senior fellow emeritus for acquisition because adding something to a service program objective policy, try to address during an NDIA members-only webinar. memorandum requires removing something from the POM to McCaffrey and Etherton hold this bimonthly forum to offer create space. Because services program over a five-year period, our members an overview of the Defense Department’s plan- new capabilities obtain resources by trading existing capa- ning, programming, budgeting and execution processes, also bilities. This leads to trade decisions that can create conflict known as PPBE. The goal is to help them understand how between government organizations, companies and congres- these four processes drive capability development and sustain- sional delegations: trades can eliminate funding and personnel ment and how resourcing, by default, defines DoD’s priorities. for some capabilities and missions in order to resource new That said, the issue remains: Decoding the department’s capabilities and missions. strategic priorities from its resourcing decisions is a challenge These are difficult discussions and decisions because they in the best of times. involve current and future capability and capacity, and differ- That is why, in line with NDIA’s objective to educate and ent stakeholders have missions and requirements that define promote budget stability, McCaffrey, Etherton and members their priorities in ways that may compete with other stake- of the Strategy and Policy team have begun work on a report holder requirements. Combatant commanders, for instance, to describe these resourcing processes as they stand today, with have a significant interest in conducting current operations, an eye for identifying stakeholders as well as the incentives and deterring potential adversaries and having access to forces to disincentives that drive resourcing decisions. execute operations plans during contingencies. As such, they NDIA’s support of budget stability rests on our belief that tend to prioritize existing programs. On the other hand, the Defense Department planners, programmers and comptrollers service chiefs, who share interest in current capabilities and can most effectively manage resourcing limitations if they have capacity, have competing priorities to ensure future forces can accurate knowledge about funding levels, specifically in the execute the missions outlined in our National Security Strate- near term and more generally in the mid- and long-term. We gy and National Defense Strategy. Thus, the services will some- continue to believe budget stability is critical times be more willing to consider trades of to ensuring our warfighters have the capa- existing capabilities and capacity to resource bilities, training and support to enjoy decisive future technologies. advantages across the spectrum of conflict. We need to take a fresh look at PPBE as it However, as the United States pursues exists today, by describing the resourcing pro- transformative technologies to maintain competitive advantage, cesses, identifying stakeholders, and defining incentives and dis- we recognize resourcing processes will significantly impact our incentives in the system. NDIA hopes its forthcoming report, success at delivering these capabilities quickly and efficiently. tentatively titled “Stepping Back from Acquisition Reform: Congress and the department have, over time, implemented How Our Resourcing Processes Drive Defense Outcomes,” several resourcing programs designed to rapidly identify prom- will help all individuals and groups interested in national secu- ising technologies to solve emerging defense challenges. The rity understand current friction points, which can potentially Small Business Innovation Research (SBIR) and Small Business lead to new ideas that more effectively resource innovation. Technology Transfer (STTR) programs and other transaction The report builds upon the research and analysis in our 2014 authority agreements (OTAs) offer pathways for innovation to report, “Pathway to Transformation: NDIA Acquisition Reform gain visibility and acceptance. Recommendations.” However, we continue to hear stories from across industry Acquisition reform depends on effective resourcing process- sectors about the difficulty of scaling these promising tech- es, policies and decisions — decisions that ultimately define nologies across the force. defense priorities. We believe understanding these processes is Much discussion focuses on the “Valley of Death,” the a key first step in shaping decisions to prioritize the right capa- timeframe between recognition of a promising technology bilities for America’s national security. through SBIR, STTR, OTAs, or other developmental resourc- I invite all to read a description of our new project on page ing processes and creation of a program of record with a secure 18. We look forward to engaging our members on this impor- funding stream to address personnel and sustainment costs tant topic as we describe current resourcing processes to help as well as development and procurement. Many stakeholders ensure our defense industrial base continues to deliver capabil- recommend a “bridge fund” to help smaller companies without ities to provide cutting edge advantages to our warfighters. ND illustrattion iStock significant capital backing to cross that valley. But a key part of any bridge is to have an end point, and in the case of Pentagon Retired Gen. Hawk Carlisle is president and CEO of the National resourcing, the end point is insertion into a service program Defense Industrial Association.

4 NATIONAL DEFENSE • J U N E 2 0 2 1

FURTHER READING COMPILED BY STEW MAGNUSON UP FRONT “Defense Navigation Capabilities: DoD is Devel- Flat Budgets? No Worries at Navy Info-Warfare oping Position, Navigation n Rear Adm. Douglas Small, commander of Naval Information Warfare Systems and Timing Technologies to Command, was asked during a Center for Strategic and International Studies brief- Complement GPS,” ing about the prospects of flat budgets derailing his efforts to deliver on the service’s By the Government contribution to joint all-domain command and control (JADC2) — known in the Navy as Project Overmatch. Accountability Office “If you look at it by any metric, we have a lot of money. What we try to do is look n Good news for at it through an abundance mindset, not ‘Gosh, I wish I had more.’” space advocates: The amount of funding and technical expertise the command has at its disposal is This GAO report “eye watering,” he said. “Where the budget is at on topline is not going to affect on starts out declar- how we deliver on Overmatch — not if I have anything to do with it,” Small said. ing that the De- For more on JADC2, see page 26. fense Department plans to keep The Goodness of Civilians Doing Space Traffic Control GPS as its primary n Maj. Gen. DeAnna Burt, deputy commander of position, naviga- Burt Space Operations Command, said handing over day- tion and timing to-day space traffic management to the Department technology. of Commerce leaves the military free to prioritize However, U.S. intelligence, surveillance and reconnaissance. military leaders from all services Commerce will take on collision warning duties by regularly bring up the need for alter- 2024, taking away a task that has been performed by natives. the Air Force and now Space Command. The report finds a plethora of GPS- “You have the Federal Aviation Administration and alternative programs in the works, but you have international entities, commercial entities that track all the aircraft around no coordinated effort or office within the globe and provide that picture to all aircraft … operating in their domain,” she the Pentagon guiding any of these said. “We need the same capability within the space domain.” programs. “DoD’s continued reliance on GPS, Afghan Air Force Might Need Contractors despite known GPS vulnerabilities to n The Biden administration plans to withdraw U.S. troops from Afghanistan by Sep- disruption, presents a challenge for tember, but there could still be opportunities for contractors to provide maintenance obtaining sufficient support to de- support to the Afghan air force. velop viable alternatives,” the report The United States will continue to assist the Afghan government after U.S. forces said. pull out, Chairman of the Joint Chiefs of Staff Gen. Mark Milley said in a press It puts forth six policy options that conference. may help remedy the situation. “Maintaining logistic support to the Afghan air force is a key task that we have to One is to clarify responsibilities sort out,” he said. The work could potentially be performed “over the horizon” in a across the department to better coor- neighboring country, or in country, he added. “The intent is to keep the Afghan air dinate and prioritize alternative PNT force in the air and to provide them with continued maintenance support,” he added. technologies. Another is for policymakers to take PEO Aviation Moving to Hybrid Work Environment a realistic look at what is truly the n If they haven’t done so already, employees at the most resilient PNT technology. It may Army’s program executive office for aviation should in- not be GPS. If so, it should be the vest in a good chair for their home office. Even after the priority. pandemic is a memory, workers will still have the option Also, defense officials should spell to conduct business from home. out what they really need out of PNT “We’re re-examining how we do our work here inside systems to accomplish missions — the PEO,” said office lead Brig. Gen. Rob rather than basing requirements on Barrie. So far, leadership has found that it can perform Barrie GPS’s performance parameters. effectively through the use of now familiar IT tools. There should also be better coor- About 93 percent of the PEO’s workforce is at home, Barrie told reporters. dination with industry as to what the “We’re really tying it to outcomes,” he said. “What are the outcomes that are sought department needs as well as standards

for the various duties that we need to perform, to design, develop, deliver and then and open architectures so alternative photos Dept. Defense support systems when they’re in the field? And then based on those outcomes, what systems can be easily integrated. is the potential range of physical proximity that someone’s required to execute their Finally, GAO recommended ongo- mission?” he asked. ing vulnerability assessments of all — Reporting by Jon Harper, Meredith Roaten and Yasmin Tadjdeh PNT systems. — Stew Magnuson

6 NATIONAL DEFENSE • J U N E 2 0 2 1 By the Numbers Coming Soon 2021 APPROXIMATE U.S. DOD FUNDING FOR UNMANNED SYSTEMS BY ORGANIZATION n NDIA affiliate the National Training and Simulation Associa- tion is one of the first associations to try an in-person event this year. The Training and Simulation Industry Sympo- sium will take place in Orlando, June 16-17 — along with a virtual option for those who still don’t want to travel. National Defense will dispatch two fully vaccinated reporters to cover the confab. NDIA is also organizing the JADC2 & All Domain Warfare Conference in College Station, Texas, July 12-14, with one day unclassified and two days classified. Attendees can choose to attend in For more on unmanned systems, see page 10. SOURCE: AUVSI person or virtually. ND

Hello, Goodbye Rear Adm. Douglas Perry necticut affiliate of NDIA a “Century n GM Defense named Steve was assigned as director of of Excellence” chapter. The organiza- duMont its new president the undersea warfare division, tion celebrated its 100th anniversary on the day it opened its new N97, in the Office of the May 5. ND manufacturing facility in Chief of Naval Operations. Concord, North Carolina. Brig. Gen. Steven Marks DuMont joined GM was named as the new dep- Defense after 13 years as an duMont uty commanding general at executive at Raytheon Intel- Army Special Operations ligence and Space. Command. For more on duMont and GM De- The Navy in April christened its fense, see the Editor’s Notes column on newest Arleigh Burke-class guided page 8. missile destroyer, the USS Lenah Sut- Ball Aerospace has named two new cliffe Higbee (DDG 123) in Pascagou- directors to its Washington operations. la, Mississippi. The ship’s namesake, Dr. Raha Hakimdavar was named Lenah Sutcliffe Higbee, served as the A University Affiliated Research Center director of space sciences. Defense second superintendent of the Navy for the DoD and intelligence space veteran Tom Mc- Nurse Corps in 1911, and was also Intyre joins Ball as director of govern- the first living woman recipient of the ment relations. Navy Cross. Mike McGovern was appointed as France’s Safran Aircraft Engines vice president of business development and Germany’s MTU Aero Engines ENTERPRISES AND SYSTEMS OF SYSTEMS at Day and Zimmermann Govern- finalized a collaboration agreement ment Services. McGovern was previ- by creating a 50/50 joint company ously SAIC’s vice president of business to work on Europe’s next-generation SYSTEMS ENGINEERING AND SYSTEMS development operations. fighter. The new entity, called EUMET MANAGEMENT TRANSFORMATION Michael Cadieux is the newest GmbH — derived from European director of Army Combat Capabilities Military Engine Team — will be based Development Command’s Ground in Munich. Vehicle Systems Center. Cadieux most Finally, not a “hello” or a “goodbye” TRUSTED SYSTEMS recently served as executive director for but a “thanks for hanging in there” to

GM Defense GM systems integration and engineering at all of the volunteer leaders who have the center. made the Greater New York and Con- HUMAN CAPITAL DEVELOPMENT www.sercuarc.org J U N E 2 0 2 1 • NATIONAL DEFENSE 7 Editor’s Notes BY STEW MAGNUSON

GM Defense: A Case Study of Success

n Concord, N.C. — On May 4, lawmakers, Army officers and will be his job to draw upon all these advanced technologies. various other VIPs came to an industrial park in the heart of “GM is making big investments in those areas now, and I’m NASCAR country for the grand opening of GM Defense’s going to harness that to the benefit of our warfighters’ needs,” new vehicle manufacturing facility. duMont said in a conversation after the ceremonies. It was indeed a remarkable day. At the beginning of the year, Along with two infantry squad vehicles taking VIPs and the 75,000 square foot building next to the parking lot where journalists around a track, the company brought a fully electric the welcoming speeches took place was an empty shell. version it created with its internal research and development In just 90 days, the company transformed the building into funding to demonstrate to the Army and Special Operations a facility where it could manufacture the Army’s new infantry Command officials on hand. squad vehicle, or ISV. Meanwhile, the company is applying advanced manufactur- And it was only a few short years ago when GM Defense ing techniques used in its commercial business to build the raised eyebrows at the Association of the United States Army’s infantry squad vehicles. annual convention in Washington, D.C., by putting up a booth The facility itself is a prime example of how fast a “startup” in the convention center’s basement and announcing that can move when it has the might of a major corporation behind the U.S. carmaker was back in the defense business after an it. absence of some 14 years. The story was told several times during the day how GM That was October 2017. By the summer of 2020, it had Defense officials walked into a completely empty building at won its first major contract — $214.3 million to build 649 the beginning of the year and after three months were produc- ISVs. ing the new vehicles there. Several times during the event’s speeches, GM Defense was The company moved all the manufacturing equipment it referred to as a “startup.” used to build the ISV prototypes and first A startup? Possibly. Technically. few vehicles from Michigan to North Caro- If the General Motors subsidiary is by lina. It worked with local officials and utili- definition a startup, then it is no ordinary ties to get all the necessary permits and the one. power it needed. It started its life being able to draw upon It called on a team of GM info-tech the technical know-how, business acumen experts to help it install a secure network and financial resources of one of America’s and create safe spaces where employees most successful companies. can work on protected technology. It’s doubtful that any GM executives So, can other U.S. corporations duplicate showed up in the office of a venture capitalist with their GM’s success for the betterment of the nation’s mili- hats in their hands asking for cash to fund their ideas to tary? SCAN help the nation’s warfighters. THIS DuMont knows full well about the vagaries of work- So can the quick success of GM Defense be used as a IMAGE ing with the Defense Department and is impressed case study for startups seeking to break into the defense with how rapidly GM Defense produced its prototypes market and steer through the infamous red tape that dis- and got things up and running before his tenure began. courages so many potential innovators? After serving in the Army, he spent 20 years as an Probably not. executive at Raytheon, BAE Systems and Boeing deal- It does, however, serve as an example of how major cor- Ride shotgun ing with the Pentagon’s acquisition system. He still in the Army’s porations with something to offer national security — but new infantry bears the scars of the failed Comanche Army helicop- are wary of the bureaucracy — can set up shop and poten- squad vehicle ter program. tially show a profit in a few short years. “I think other commercial companies are going to look at General Motors is no stranger to doing business with the this and say, ‘OK, that’s the model. There may be something to government or the military. It was one of the companies that that model because GM is a phenomenal company with deep answered the call in World War II to cease production of its reach back into a huge technical advantage. They make huge cars and trucks and quickly switch to fighting vehicles and air- investments every year to drive their commercial business.’” craft. It created its first defense subsidiary in 1950, which was Steve Herrick, Army product lead for ground mobility sold to General Dynamics in 2003. vehicles, said there are some positives from the government When its defense business was re-established in 2017, it was side as well.

already knee-deep researching and developing a variety of new The Army is doing a better job of outreach by letting non- photo Magnuson Stew technologies that the military was also pursuing. Among them traditional companies know about these opportunities, he are electric vehicles, advanced batteries, autonomy, connectiv- said. But these would-be contractors still have to compete and ity and manned-unmanned teaming. deliver on requirements, he noted. Steve duMont, the new president of GM Defense, said it “The biggest takeaway is the door is open,” Herrick said. ND

8 NATIONAL DEFENSE • J U N E 2 0 2 1 Emerging Technology Horizons BY REBECCA WOSTENBERG

New Institute Will Tackle the Tough Questions

n When construction began on the USS Constitution in 1794, policy changes that could help resolves some of these issues? the fledgling republic had limited resources and would soon The institute wants to hear members’ perspectives and will face, for a second time, the most powerful navy in the world. provide many avenues to make their voices heard. Expect ETI Naval architect Joshua Humphreys knew with scarce resourc- to not only leverage the existing division structure of NDIA, es, each ship had to be as formidable as possible and so he set but also find areas of growth. Whether that is a working group to work building a different type of frigate. focused on microelectronics or a workshop devoted to hyper- In the end, she was larger, faster, had a stronger hull — earn- sonics, the institute wants to provide forums in which industry, ing her the nickname “Old Ironsides” — and was more heavily government and academia can come together for productive armed, capable of carrying double the guns per deck without discussions that lead to solutions for the warfighter. sacrificing maneuverability. She made her mark in the War of NDIA has always made a point of representing all members, 1812 and still sits in Boston Harbor as a testament to Ameri- not just one company, and ETI will be no different. It will be ca’s long history of innovation. independent and objective, following where the data takes it, This history sets the United States apart from other nations. and maintaining this honest broker status. For this reason, ETI Unlike some countries who chose to steal intellectual property seeks to also provide recommendations on where the Defense to advance their military might, America has always been a Department can make the best emerging technology invest- nation of inventors and innovators. This has played a crucial ments — not investing in buzzwords, but investing in useful role throughout U.S. military history and must continue if ours capabilities for the warfighter. is to remain the most powerful military in the world. In the One challenge that smaller companies often face is the cost same way that Humphreys took scarce resources of a young of doing business with the department and navigating the republic and created a truly historic frigate, America’s military acquisition process. When innovative emerging technology today needs the cutting edge technologies of solutions come from these companies, over- tomorrow — artificial intelligence, hyperson- coming this challenge can make the differ- ics, and the like — to fight and win in the 21st ence in actually fielding capability. The 2018 century. National Defense Strategy highlights the As discussed in last month’s column, adver- need to “deliver performance at the speed of saries have had ample time to study the U.S. relevance,” and this is especially pertinent in way of war. But they must not be allowed to acquisition. Much time and manpower has use that to their advantage. The nation must been devoted to this problem set but more ensure that its warfighters maintain the lethal- work remains. The current acquisition pro- ity and competitive edge that emerging tech- USS Constitution cess that works in timelines of years, is not nologies can bring to the battlefield. This will conducive to fielding innovative technologies not happen overnight, but we owe it to the men and women that are changing on a weekly or monthly basis. in uniform to do the hard work now that will pay off in the There needs to be a hard look at current processes. For decades to come. example, how to balance emerging technologies with cur- Here at the National Defense Industrial Association, there is rently funded platforms? How can the acquisition culture be strength in numbers. There are currently 1,567 corporate and changed to be more agile and responsive to battlefield needs? 61,935 individual members to be exact. By representing the These very questions, and more, will be the focus of ETI’s first full array of industry that will ultimately manufacture and sup- public workshop June 7, titled “The Modernization Quandary.” ply these technologies, the Emerging Technologies Institute is The intent of this workshop is to begin a serious conversation in a unique position to bring together key members of indus- amongst the Defense Department, industry and Congress on try, leading academic experts and decision-makers in Congress what needs to be done first, and what can be deferred, espe- and at the Defense Department. cially in a budget constrained environment. No one outside of government is effectively focusing atten- When faced with a fiscally constrained environment 200 tion on emerging technologies and bringing together the years ago, Joshua Humphreys still found a way to provide a right players to ultimately accelerate the deployment of these young Navy with a ship that could outgun and outrun other technologies into the hands of warfighters. This is exactly the frigates of the day. This “emerging technology” of the 18th cen- void that ETI seeks to fill. At the same time, NDIA’s interac- tury made the difference in the War of 1812. Although today’s tion with industry has always been a two-way street and ETI’s budget constrained environment is a far cry from that of our work will be no different. founding, it is worth remembering that every generation of A lot is asked of the defense industrial base — the price of American military leadership has faced this fundamental chal- failure can be a matter of life and death on the battlefield. lenge. ND

Navy photo Navy However, industry members know best where their impact can be greatest. What are the challenges they face when work- Rebecca Wostenberg is a research fellow at the Emerging Technologies ing with the department on emerging technologies? Are there Institute. Contact her at [email protected].

J U N E 2 0 2 1 • NATIONAL DEFENSE 9 Boeing photo MQ-25 Stingray drone ND $73 million, Marine Corps $38 million, and and million, $38 Corps Marine million, $73 “Across the board, technologies that enable im- enable that technologies board, the “Across enabler. critical another is Autonomy “Capability enhancements for unmanned systems systems unmanned for enhancements “Capability are derived from improvements in the enabling tech- enabling the in improvements from derived are these onto integrated are that subsystems and nologies noted. report the platforms,” systems unmanned of control and navigation proved and “Sensors said. it support,” of levels high receive en- important most the arguably represent payloads and systems unmanned for category technology abling budget.” 2021 FY the in focus of area an remains this abling this are nologies platforms,” proved receive payloads Going forward, unmanned systems are expected to continue continue to expected are systems unmanned forward, Going in million $190 with services the all leads Army the 2021, In “Automation is being integrated wherever possible to reduce reduce to possible wherever integrated being is “Automation Other enabling technologies receiving funding include include funding receiving technologies enabling Other en- counter to how is Pentagon the for concern growing A and crewed remotely operate increasingly will forces “U.S. “The current administration is putting emphasis on autono- on emphasis putting is administration current “The emy unmanned systems, particularly small UAVs. small particularly systems, unmanned emy soldier burden, improve the efficiency of operations and and operations of efficiency the improve burden, soldier “Autonomy said. report the awareness,” situational increase operated remotely and training simulation, sensors/payloads, systems. weapon Biden. Joe President under funding substantial receive to cross-cutting a as ARCS, or systems, crewed remotely and mous acting O’Donnell, Christopher missions,” DoD all for enabler acquisition, for defense of secretary assistant deputy principal the all across capabilities these of adoption the “accelerate to deny deter, — necessary if — and identify track, detect, to able them.” defeat or receiving is Force Air The capabilities. counter-UAS for funding Navy million, $29 weaves its way through most of the other technologies … and and … technologies other the of most through way its weaves battlefield.” the of landscape future the transform will warfare, electronic cyber, management, communications/data propulsion/energy, teaming, manned-unmanned mobility, is aim The conference. defense AUVSI recent a during said added. he domains,” our it, face let’s and — domains all across systems autonomous be must “We said. O’Donnell same,” the doing are adversaries report. the to according million, $38 SOCOM flight THIS THIS SCAN SCAN See the See IMAGE MQ-25’s MQ-25’s first test test first

J U N E 2 0 2 1

• BUDGET MATTERS BUDGET JON HARPER BY

NATIONAL DEFENSE The Defense Department has been allocated about about allocated been has Department Defense The “Sustained investments in UxV systems will expand their their expand will systems UxV in investments “Sustained ap- were departments and agencies military 17 2021, For $1.76 approximately with services the all leads Navy The $1.1 approximately received each Force Air and Navy The mari- air, the to related technologies robotics for Funding pro- to devoted is million $820 approximately “Notably, platforms. toward going just isn’t funding The All of the military services and Special Operations Operations Special and services military the of All energy/ sensors, autonomy, in advancements “Recent

propulsion systems, and navigation/control systems have have systems navigation/control and systems, propulsion uses, enabling DoD to more effectively allocate resources and and resources allocate effectively more to DoD enabling uses, said. study the system,” fleet hybrid a in times response speed Force, Air the with technologies, UxV for funding propriated billion $7.5 the of percent 87 for accounting Navy and Army total. and test development, research, for appropriated billion funding RDT&E substantial received also Others evaluation. Marine million; $632 Force, Air billion; $1.02 Army, including: Projects Research Advanced Defense million; $238 Corps, mil- $55 Command, Operations Special million; $216 Agency, million. $210 Defense, of Secretary the of Office and lion; re- Army The systems; unmanned of procurement for billion SOCOM and million, $70 Corps Marine million, $885 ceived million. $90 totaled domains ground and surface maritime subsurface, time billion, $1.36 and billion $1.19 billion, $1.38 billion, $3.32 respectively. the UxV,” of capabilities cross-domain improve that grams said. study improved the efficiency and effectiveness of UxV, allowing allowing UxV, of effectiveness and efficiency the improved human minimal with time of periods long for function to them for Association the by report new a said oversight,” and input Bud- Defense “2021 International, Systems Vehicle Unmanned Robotics.” and Systems Unmanned for get $7.5 billion in fiscal year 2021 for a variety of robotic robotic of variety a for 2021 year fiscal in billion $7.5 recent a to according technologies, related and platforms items. funding 1,000 than more at looked that study as known also capabilities, these pursuing are Command subsurface and surface maritime ground, air, the for UxV, domains. n

10 Pentagon Gets $7.5 Billion for Unmanned Systems Gets $7.5 Pentagon Is BRAC Worth a Political ‘Food Fight?’

n Some in the national security community are advocating for more U.S. military base realignment and closures, but others question whether pursuing it would be worth the inevitable political battle. In 2017, the Defense Department determined that it had nearly 20 percent excess infrastructure, and officials sought another round of BRAC to free up money to Analysts Call for Big Boost invest in other programs. However, they ran into strong opposition from lawmakers who didn’t want to see To Biodefense Budgets facilities closed in their states and districts. Military budget expert Frederico Bartels advocated n The Pentagon’s annual budget for biodefense should be for BRAC in a Heritage Foundation report, “56 Recom- increased to $10 billion, with another $10 billion going to the mendations for Congress: Shaping the FY 2022 National Department of Health and Human Services, some analysts are Defense Authorization Act and Defense Appropriations recommending. to Enhance the National Defense,” arguing it would be A new report by the Council on Strategic Risks’ Nolan Cen- an important money saver. ter on Strategic Weapons, “Key U.S. Initiatives for Addressing However, during a recent panel, Michael O’Hanlon, Biological Threats Part 1: Bolstering the Chemical and Biologi- a national security analyst at the Brookings Institution, cal Defense Program,” was released as the United States and the questioned whether officials should make that a priority. world continue to deal with the devastation from the COVID-19 “If all we’re going to save once we’re done is a couple pandemic. billion a year and we’ve got to have these huge food The Pentagon program, also known as CBDP, has had past suc- fights in Congress, and we’re at the point now where a cesses in developing therapeutics and vaccines to combat deadly couple billion dollars a year is sort of a rounding error in diseases, the study noted. the defense budget, is it really even worth the trouble?” There needs to be “a large-scale government effort to meet he asked. biological threats and be able to detect and respond faster to the Caitlin Talmadge, an associate professor of security next outbreak,” it said. “The “CBDP should play a central role, in- studies at Georgetown University’s Edmund A. Walsh cluding via support for versatile technologies that are essential for School of Foreign Service, says it might not be. addressing biological weapons threats, and helpful in both dealing “It seems like something that could use up a lot of po- with lab accidents and fighting emerging infectious diseases such litical capital and not necessarily yield really big savings,” as COVID-19. This will take reversing the erosion of the CBDP’s she said. Officials should instead focus on building po- budget that has occurred over the last decade.” litical consensus around the need to reallocate resources The program’s activities would include: funding advances between the military services and within them to better against bio threats and driving their development, shepherd- prepare for competition with China, Talmadge said. ing them through testing and evaluation to help them cross the Former Pentagon Comptroller Robert Hale would like programmatic “Valley of Death” that lies between development to see another round of BRAC. and fielding, and working with allies and partners to improve and “These savings, if they were allowed, would … be true deploy technologies. efficiencies,” he said. “The process of maximizing CBDP’s contributions to counter- “We would not give ing biological threats should begin by roughly doubling CBDP’s up any capabilities” funding to at least $2 billion in the next year, to be increased to by closing unneeded the $6.5 billion to $7 billion annual budget range in the follow- depots and support ing years,” said the report, which was released in April. facilities, he added. It also called for additional federal funding for other programs. “Two or three billion “The U.S. government should aim to invest $10 billion annu- dollars of savings in ally in DoD to address infectious disease threats, plus $10 billion perpetuity I think is annually in the Department of Health and Human Services, worth considering.” sustained over 10 years,” the report said. However, it might Key investment areas should include nucleic-acid based thera- not be in the cards anytime soon, he acknowledged. peutics, a new approach that relies on gene encoding similar to “I’m not politically naive,” Hale said. “Congress has the most efficacious COVID-19 vaccines, and early-detection photoUSAMRDCphoto, Army been adamant in saying it is not going to allow this. I technology that can be forward deployed in the field and at clin- think that’s unfortunate because we’re really wasting the ics to identify pathogens by reading their genetic material, the public’s money. But if I were in DoD I might question study recommended. whether or not it’s worth taking this on unless I could “These investments should be part of a whole-of-government find some key members [on the Hill] who were willing surge to never again allow the nation to experience the mass ef- to support it.” ND fects the COVID-19 pandemic has wrought,” it said. ND

JUNE 2021 • NATIONAL DEFENSE 11 Navy photo

or F/A-18E Super Hornet fighter jet

provides three - MR director of fleet readi-

Analytics and Readiness O’Connell said.

known as RAVEN, Spedero Jr., Paul

“Knocking down those barriers … can be he said. he said. which created a 35 percent increase in FA-18E/F Super Adm. added Rear Analytics Group, Readiness Another success is the Force to culture needs to change for the transformation The Navy’s as early suc- Leaders pointed to two data analytics programs works well today, “The information in the decision process generally O’Connell noted that successful transformations The ability to look at readiness metrics at the individual unit “There are a lot of folks that are fairly comfortable with the Environment, Visualization dozen data lakes for a visualization of readiness. FRAG, from 2019 to 2020. Hornet availability more manual than desired,” but it’s progress access to reliable data to track include leaders having ness and analysis. succeed, of the Navy,” pretty challenging.” to build on. cesses for future programs rier strike group for a mission. and inform decisions. level helps assess where barriers exist for bolstering prepared- ness, problems in their place and their approach to the business side

said col- ordnance, training, which includes goals

seeing what they can BRIEFS supply, unmanned incorporating released in was The strategy O’Connell said at a Navy

led by the fleet integrated

“readi- will be a one-stop shop for

equipment,

according to a service official. efforts to update who is leading the Navy’s

with industry. production and collaboration

reporting and decision-making.” NEWS MEREDITH ROATEN AND MAYFIELD MANDY BY dashboard to monitor is employing a new analysis Navy

Plan,” “Navigation Michael Gilday’s DEFENSE • JUNE 2021 NATIONAL

The leaders need to understand the power of data and Navy “All O’Connell, Patrick The fleet readiness dashboard, Operations It will support the 16 objectives of Chief of Naval will also automate an additional dashboard that The Navy

actively push their teams to experiment, boosts readiness, do today with the data they have,” its performance goals, officer, its digital systems as chief digital transformation lecting key performance indicators and making them accessible April. League event in n readiness and analysis office, ness analysis, Adm. such as creating a more lethal fleet, platforms and increasing readiness. measures fleet personnel, to determine the readiness of a car- networks and infrastructure “coupled with process that digital technology and noted January will help the service win future conflicts. mindset of continual learning” improvement and an innovative

12 Readiness Rates Dashboard to Navy Track Germany Selects Lockheed Martin for Space Tracking System

n The German Space Agency selected Lockheed Martin’s iSpace system to enhance its ability to track and characterize debris in orbit. Space agencies have grown increasingly concerned about the threats posed by space debris as nations around the globe plan Israeli Firm to launch a plethora of new satellites and systems in the coming years. Delivers Advanced “Congestion is becoming an increasing concern,” said Jeff Chadwick, program manager for space command and control Targeting System at Lockheed Martin.“Understanding what’s up there and what’s being threatened by what, is an important thing.” n Smart Shooter, an Israel-based developer of fire The iSpace command-and-control system will help the control systems, has delivered a new optical targeting German Space Agency obtain situational awareness of more scope to the Defense Department for testing. than 300,000 objects in multiple orbits, characterize them and Last year, the department’s Irregular Warfare Tech- respond appropriately, according to Lockheed Martin. The plat- nical Support Directorate awarded the manufacturer form works by gathering data from a network of government and the opportunity to design a system for its Individual commercial sensors. Weapon Overmatch Optic, or IWOO, project. The agency maintains the German Space Situational Aware- The program’s goal is to provide tactical operators ness Center alongside the nation’s air force. iSpace will work with advantages day and night against long-range static and German sensors to support monitoring of high-interest objects moving targets, according to the company. and space events, according to the company. Scott Thompson, vice president and general man- “We’ve got a number of different optical and radar sensors that ager of U.S. operations for Smart Shooter, said the we’ve used with iSpace to aggregate inputs from those sensors, variable zoom on its optic technology — derived from do orbit determinations, identify objects and then associate those its SMASH line of fire control optics — allows users objects with whether it’s known or not within a space catalog,” to aim at a target beyond 600 meters and automati- Chadwick said. “We do indications and warnings — so when an cally perform ballistics calculations to hit it. object is decaying and it looks like it’s going to come back into The system “won’t let you fire unless you have a the atmosphere decaying, we will track it and can project when 100 percent solution, which really separates our tech- that decay is going to occur.” nology from anyone else out there,” he said. The system can also assist with hitting moving targets, which is a key capability the Defense De- partment is looking for due to the growing threat of enemy drones, Thompson said. Sharone Aloni, Smart Shooter’s vice president of research and development, said the system’s open architecture allows the technology to interface with radar and external sensors in addition to adding other applications if necessary. “The system itself is very versatile,” he said. Competency and internal confidence testing is expected in July. The sensor will undergo a technology readiness review in the fall, and Smart Shooter will deliver its first functional system by the end of The technology can also perform “conjunction assessments,” the year. he said. “If there’s a potential for a collision up there between While there are other scopes on the market with a photo Dept.graphic, Defense Martin Lockheed two objects, we’ll detect that and even provide some probability similar target range, the IWOO design is more com- of conjunction because it’s very expensive to take … evasive plex, Aloni said. maneuvers.” “It is pretty much the most complicated system iSpace has already been fielded with the agency and Lockheed that we have ever built,” he said. Martin expected it to be fully operational by the end of April, Aloni added that the company is confident that the Chadwick noted. next production milestones will be met on time. “We’ve been having regular discussions with them, understand- “As in any kind of program, there are certain risks,” ing some of their unique needs for the product and making sure he said. “We are managing them and we have a risk that it’s going to satisfy those needs,” he said. - MM reduction plan that we put into place.” - MR

JUNE 2021 • NATIONAL DEFENSE 13 Algorithmic Warfare BY YASMIN TADJDEH

Industry Hopes CMMC Review Leads to Tweaks

n One of the Pentagon’s most high-profile programs is its as being implemented now, is on track for failure. Cybersecurity Maturity Model Certification effort. CMMC “There is little evidence that the current approach will suc- will eventually require all 300,000-plus companies working in ceed — and meanwhile our adversaries are hard at work hol- the defense industrial base to meet certain levels of cyberse- lowing out the intellectual property that is the foundation of curity to protect against threats from adversaries and continue our nation’s security,” they said. working with the Defense Department. Tanenbaum and Hutchins are the founders of Turnkey However, with a new administration installed at the Penta- Cybersecurity and Privacy Solutions, which is working with gon, the department recently announced that it had initiated companies to become compliant with CMMC. Golden is a an “internal assessment” of the program. founding member of the CMMC Accreditation Body Board of Katie Arrington, chief information security officer in the Directors. office of the undersecretary of defense for acquisition and The Pentagon has not provided the resources or funding sustainment, recently likened the assessment to a standard required for the defense industrial base to achieve CMMC acquisition category, or ACAT, 1 review of major defense compliance, they said. acquisition programs. The review will ensure “we’re doing the With the publishing of the white paper, “we’re shooting up implementation correctly internally,” she said in April during a a flare here,” Hutchins said. “We need a lot more support. We webinar hosted by Deltek. “That’s actually been phenomenal need some changes made or this thing is not going to happen.” [at] ... helping us looking across the departments so we’re not Golden noted that he hoped to see changes come out of the duplicating effort or anything like that.” internal assessment, including some authorities being moved In a statement to National Defense in early May, a Pentagon out of the A&S office into an organization such as the National spokesperson offered no details on the timeline of when the Institute of Standards and Technology or the Defense Informa- review will be completed or what changes may be made. tion Systems Agency, which have more cybersecurity experi- With new leadership in place in the White House, it is a ence. good time for the Pentagon to take a close look at the CMMC Additionally, funding for the effort is needed, he said. program, said Andrew Hunter, director of the Center “When I was on the board of the CMMC-AB we for Strategic and International Studies’ Defense- finally got some funding through our own means,” Industrial Initiatives Group. Golden said. “As I was coming off the board, I was “It is a natural opportunity with the change of actually buying basically infrastructure in the cloud administration to kind of step back and say, ‘We’ve for us to be able to host various reports and do busi- been trying to accomplish this goal for some time. Are ness” processes. we on track?’” Hunter said. “‘Is it still the goal that we’re most Meanwhile, the Pentagon is taking a phased approach to its interested in achieving? Have things happened in the world CMMC rollout and is on track to release 15 contracts with that might change what we’re trying to achieve or how we requirements included in them this year, Arrington said. Seven might try to achieve it?’” of those have already been released. In April, Apptega — a software solutions company focus- However, the Defense Department is waiting for the new ing on cybersecurity and compliance — in partnership with undersecretary of defense for acquisition and sustainment to Secure Strux — a provider of services for compliance, vulner- be installed before releasing the others, she noted. ability management, cybersecurity strategies and engineering In April, the White House announced its intention to nomi- solutions — published their “CMMC Preparation Study for nate Michael Brown, the current director of the Defense Inno- 2021.” In the report, 81 percent of defense industry participants vation Unit, to lead the A&S office. in the survey said CMMC is an important initiative needed to Wes Hallman, the National Defense Industrial Association’s protect sensitive information. However, nearly one-third said senior vice president of strategy and policy, praised the choice the program will create unnecessary burdens and costs. and said Brown would bring a wealth of knowledge to the “These two findings combined seem to indicate broad scale CMMC program. NDIA has been working closely with the agreement on the need to do more to protect sensitive infor- Defense Department since the beginning of the effort, offering mation within the [defense industrial base], but CMMC may recommendations and feedback from industry. be too rigid in its requirement for contractors to achieve 100 “One of the great things about … [Brown] is that he was percent compliance to be certified,” Scot McLeod, vice presi- the CEO of Symantec, which is a cybersecurity company, dent at Apptega, said in an email. “Many in the industry see before he decided to serve his country running DIU,” he said. this requirement as impractical and cost prohibitive, especially “We’re getting somebody who is uniquely aware of and an for smaller contractors. Many are also concerned that this will expert on cybersecurity. So, my guess is that … this is some-

stifle innovation within the DIB.” thing he’s been tracking and something that he’s going to put illustration iStock In a recent white paper, “The CMMC: A Paradigm Shift some emphasis on when he comes in.” ND Required for Success,” by Chris Golden, Mitch Tanenbaum and Ray Hutchins, the authors said the current CMMC program, For more on CMMC, see stories beginning on page 36.

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WWW.AIMPOINT.US/FIRECONTROL M03552 Viewpoint BY ALAN R. SHAFFER, CHRIS TOFFALES AND MONIQUE D. ATTAR

Microelectronics: A Critical National Resource

n One fallout from the pandemic has been a growing realiza- This is not just a state-of-the-art problem for microelectron- tion of the impact of a fragile manufacturing and supply chain ics. It is a problem for legacy systems as well. In the commer- on the economy and potential impact on national security. cial semiconductor market, most products are expendable. If This is true in several sectors, but arguably, none more the cell phone or computer gets old — replace it. The life span important than microelectronics. The issues are great, but there is around five years or less. Defense platforms are very com- is a recommended solution that has been identified as a way plex, and fighter jets, aircraft carriers, etc., are not expendable. forward to “build back better” a strong microelectronics indus- To be sure, the Defense Department could mitigate some of try in the United States: there needs to be a public-private the challenges by more aggressively adopting digital engineer- partnership that will take the nation from foreign dependency ing and open architectures to allow more plug-and-play mod- to self-sustaining domestic production. ules. The department is not there yet — they are heading in Microelectronics is a sector where the United States still has that direction — but a completely open system is likely years the largest market share in sales of finished product, at about away. 47 percent of the global total, according to the Semiconductor So, what happens when the Defense Department loses Industry Association. access to legacy parts? Currently, two options — both bad — Unfortunately, America only accounts for approximately 12 are available: reengineer with available microelectronics, which percent of the global manufacturing production. The nation costs a lot of money and takes time, or program for end-of-life relies on parts made offshore which are in many cases single purchases. sourced. This is true for both commercial and military systems. In the fiscal year 2021 budget request, the department asked Disruption of the worldwide microelectronics supply chain to make a roughly $900 million purchase of legacy microelec- would seriously impact the U.S. economy, as well as the readi- tronics to support the fielding of military GPS user equipment ness posture of the armed forces, and operability of critical through 2028. Such a change is not free — the money has to national infrastructure such as electric grids, come from something else the department banking and the medical industries. needs to do. More end-of-life purchases are By 2030, left unchecked, U.S. production expected in the coming years. will fall to 10 percent of global production. Defense can’t drive the market. Its market Roughly 50 percent of production will come share is under 2 percent of U.S. demand. from China and Taiwan; 80 percent when However, when we start to think about all adding Japan and Singapore. The United national security systems — inclusive of criti- States imports about 80 percent of the micro- cal infrastructure — the demand can approach electronics used here. This situation leaves the 20 to 25 percent. This opens options. Cur- nation totally vulnerable and reliant on several countries, one rently, several Asian nations subsidize production, giving these of which — China — has shown no hesitancy to wield eco- countries as much as a 30 to 50 percent advantage in the mar- nomic tools to further their national security objectives. ket. U.S. producers really can’t compete at this disadvantage. The United States has already seen the “canary in the coal By taking policy and financial actions in a coherent strategy, mine” of microelectronics supply chain fragility in the auto- the nation can develop a sustainable microelectronics ecosys- motive industry. Modern automobiles rely on a specialized tem that would reduce the dependency on offshore manufac- microelectronic called “microcontrollers.” The Taiwan Semicon- turers. ductor Manufacturing Co. produces roughly 70 percent of the But the time to act is now. President Joe Biden has opened global supply of microcontrollers. At the start of the pandemic, the discussion with his “Build Back Better” initiative. We TSMC projected a need to shift production to chips required believe the nation needs to strengthen the Buy America Act to meet the demand of teleworking, reducing production of or an expanded Berry Amendment to provide preferential microcontrollers. The demand for automotive microcontrollers purchasing from domestic microelectronics producers and did not wane, resulting in Western automakers having to enhanced emphasis on digital engineering and open systems reduce 2021 vehicle production. architecture to begin a change in incentives. However, this will There is very little the West can do about this in the short not be enough. The United States needs to couple these policy term. options with a coordinated and strategic government fund- U.S.-based firms are shifting their production processes, but ing plan for 2021. We advocate a public-private partnership this takes time — measured in years, not months. to coordinate this investment as a business, with a sustainable The canary in the coal mine event occurred largely through cash flow to keep the U.S. microelectronics ecosystem healthy a series of circumstances. But it is very illustrative of the and critical infrastructure secure. ND national security challenges facing America. Disruption of

a supply chain of standard microelectronics could slow or Alan R. Shaffer is an advisor, Chris Toffales is chairman and Monique photoiStock cripple production of new U.S. defense systems or completely D. Attar is communications manager at CTC Aero LLC, an aerospace undermine sustainment of existing systems. and defense consultancy firm.

16 NATIONAL DEFENSE • JUNE 2021 Viewpoint BY BOB STEVENS

Security for Telework, BYOD and Beyond

n The Defense Department experienced unprecedented As threats become more changes to its work environment this past year. Officials scram- sophisticated and prevalent, bled to implement policies and procedures for a secure transi- training and awareness pro- tion after adding over 900,000 user accounts to its commercial grams are necessary steps to virtual remote environment in a two-week timeframe. achieve a unified workforce But what started as a temporary solution for the department and, ultimately, a successful is here to stay. With telework benefits ranging from increased security strategy. productivity, flexibility, and more, the department is pushing Even with proper education, users alone cannot be a single to hire more remote workers to stay ahead of the digital trans- line of defense. Agencies should assume a Zero Trust mentality, formation. trusting no user or device without continuous verification. In response, the defense community needs a comprehensive Indeed, the government is taking strides to ensure imple- security strategy that doesn’t rely on perimeter-based security, mentation across agencies. Noting BYOD as a driver for the which tethers employees to physical office locations. approach, the National Institute of Standards and Technology’s Now more than ever, it’s time to take a prescriptive Zero Trust guidance lays out recommendations for agencies to approach that fully addresses an overlooked element of cyber- encourage and support its adoption. security: mobile. Devices like smartphones and tablets are con- At a basic level, Zero Trust requires device validation before venient and ubiquitous, but they simultaneously offer access to providing access to data and networks, which is especially criti- government employees’ — and the nation’s — most sensitive cal as a broader set of devices enters the network. But Zero data. Trust policies must include all potential entry points, especially Preparing for bring your own device (BYOD) is a significant since mobile devices are efficient and easy for cybercriminals part of an agency’s cybersecurity strategy. Federal employees to infiltrate. As such, agencies need to dynamically monitor the increasingly use personal mobile devices to check email and health of smartphones, tablets and all mobile devices, restrict- engage in work-related communication, even if they’re not ing access immediately when a risk profile changes. authorized to do so. Many agencies are getting ahead of this by While many agencies assume that they’ve covered mobile revisiting BYOD and implementing an official policy to con- security with methods like mobile device management, this trol, manage and better ensure compliance across devices. does not offer the protection or the telemetry data needed to The Air Force is taking the lead. In the summer of 2020, it implement Zero Trust or investigate security incidents. introduced a bring your own “approved” device (BYOAD) pol- A well-rounded mobile security strategy starts by detect- icy to allow employees access to information from anywhere, ing and defending against all cyber risks, including app-based create streamlined communication channels, and improve end- threats, network vulnerabilities and mobile phishing attempts. user experience. A transformative program, BYOAD will likely Once identified, users should receive remediation instructions become a tangible example for other agencies. so they know the precise actions to take next. With such policies, mobile consumption and telework At the same time, threats are continually evolving and becoming commonplace, it’s time for agencies to rethink their increasing in sophistication. Mobile security must also include cybersecurity strategy. They need to ensure mobile is part of endpoint detection and response (EDR) that can quickly all security training plans and policies. Additionally, to properly detect, hunt for and respond to threats, investigate incidents implement Zero Trust and investigate threat incidents, that and contain them at the endpoint. means they need to include the devices their workers use the What can this prevent? For example, complex social engi- most. neering can target a specific individual and create a mobile User awareness is crucial for those working on Defense application designed to lure them in and convince them to Department-issued mobile devices, participating in a BYOD sideload an app. If the app turns out to be malware, it can program, or sneaking tasks in on unauthorized personal devic- access sensitive information stored on a user’s phone or even es. While most individuals are familiar with security basics, like gain control of their phone camera and microphone. Mobile regularly updating passwords and not clicking on suspicious EDR investigates the origins of the attack — since incidents links on a desktop, mobile attacks can slip under the radar. are rarely isolated — and addresses it before the threat impacts Education is essential, but it’s not a silver bullet. A survey by the entire agency. cloud security company Lookout found that the rate at which Because so many threats originate on mobile, it is critical federal government employees encountered mobile phishing that endpoint detection and response approaches can exam- more than doubled between the last quarter of 2019 and the ine and operate effectively on all endpoints. Machine learn- first quarter of 2020. ing analysis creates an approach sensitive to the constrained Users should know how to identify mobile phishing’s many resources on mobile platforms and end-user privacy while sup- photoiStock forms, including text, social media and messaging apps. Educa- porting the threat detection and response process. ND tion should also reiterate how mobile devices’ smaller form factor makes it harder to identify malicious phishing links. Bob Stevens is vice president of Americas for Lookout.

JUNE 2021 • NATIONAL DEFENSE 17 Announcement BY JON ETHERTON AND JACOB WINN

New Report to Describe Incentives in Resourcing Processes n The National Defense Industrial Association’s 2014 report, authority for defense policies and programs, other institutional “Pathway to Transformation: NDIA Acquisition Reform actors within the planning, programing, budget and execution Recommendations,” showed that past efforts to reform the system adapt their behavior to successfully navigate current acquisition process did not result in changes to the underly- and future rounds of budgeting and appropriations to ensure ing structural resourcing forces that shape today’s acquisition successful programming and execution. decisions. Specifically, the report will explain, document and explore Reform in defense acquisition historically examined major the incentives and disincentives for defense acquisition stake- systems acquisition and tried to tackle the sources of sched- holders that the current resourcing system creates in defense ule, cost and program performance challenges. Recent reform programming and execution. This reality yields significant efforts prioritize faster capability development and delivery. consequences — some highly effective, and some counterpro- Unfortunately, these recent reform efforts underexamined ductive — for cost growth, schedule slippage and program the drivers of cost growth and poor program performance performance. across the acquisition cycle, especially with respect to under- For its part, Congress, under its budgetary power in Article standing the positive and negative incentives in the system 1 of the Constitution, allocates funding through its annual driving undesirable outcomes. The acquisition reform conver- budgeting process. It takes its cues from political consider- sation’s limited scope prevents analysts, decision-makers and ations related to balancing fiscal responsibility and national security. It strives to strike a balance between directing sufficient program funds to the correct programs and putting in safeguards around those funds’ use. It works with the Office of Management and Budget (OMB) to accomplish the Execu- tive branch’s political goals. The Defense Department operates differently. It produces five-year Program Objective Memorandums (POMs) to describe how the services, combatant commands, and Fourth Estate intend to use resources to achieve the National Defense Strategy and National Security Strategy to provide for the United States’ national security in ways that fulfil acquisitions and cost objectives. In the process of building these five-year plans, the department must match personnel and sustainment funding to acquisition programs while jug- gling the uncertainty of a changing world as well as Congres- sional priorities. reformers from gaining a full picture of all factors contributing NDIA will deliver its final report to the House and Senate to disappointing defense acquisition outcomes. Armed Services Committees, defense acquisition officials and The nation’s budgeting and appropriations processes impose readers of National Defense. constraints and restraints on the acquisition system in ways Based on NDIA’s previous research and reform initiatives, that produce powerful incentives and disincentives for defense we know that resourcing and acquisition processes are not resourcing stakeholders. As such, there is a need for stakehold- found in the state of nature: they are man-made practices that ers and analysts to step back and evaluate the programming, have evolved to operate in response to man-made decisions. budgeting and execution components of processes and how For that reason, rather than recommend reforms or specific they impact acquisition, with a particular focus on the posi- actions for changing practices, NDIA’s report will focus on tive and negative behaviors and externalities that resourcing describing and explaining the resourcing and acquisition poli- processes produce. cies and procedures as they exist today. To address this gap, NDIA is producing a report tentatively The project team has compiled some initial observations titled, “Stepping Back from Acquisition Reform: How Our about resourcing processes that can influence programming, Resourcing Processes Drive Defense Outcomes.” It will focus acquisition, and execution behavior and decisions, which will on describing resourcing systems across Congress, the Office be explored in detail in the report. of Management and Budget and the Defense Department. It One aspect will be the difference between the executive will specifically focus on describing and explaining how cur- and legislative branches’ budget and planning horizons. Con- rent resourcing processes create incentives and disincentives gress’ annual budget cycle is incongruous with the Defense that impact programming, budgeting, and execution efforts Department’s five-year planning process, which creates con- and outcomes in a multitude of ways. flicting incentives for both parties as they seek to balance photoiStock The central challenge that this report seeks to describe short- and long-term funding and programmatic priorities. is that as Congress translates the public’s will into budget These different time horizons create conflicting incentives for

18 NATIONAL DEFENSE • JUNE 2021 both parties related to balancing short- and long-term out- federal agencies have developed disparate processes to create comes. more flexibility. This creates inefficiency and requires the It will also look at timing requirements for funding alloca- legislative branch and executive agencies alike to divert more tion. Congress requires federal agencies to spend allocated resources to manage these flexibility processes. For example, funds from their funding accounts within certain time limi- defense programs may rely on the use of multiple working tations. Otherwise, the funds revert to the federal treasury. capital and other revolving funds — where funding is less These time requirements constrain flexibility, especially due subject to color of money and time constraints — and must to the need to predict and prepare for future capabilities transition to standard program funding, which is much more without full knowledge of their scope and requirements. restrictive and changes resourcing incentives. The report will also look at how program requirements With some of these well-discussed problem areas in mind, force full funding. Although the department uses incremental the project report will attempt to provide more clarity on the funding in the cases of military construction and occasion- sources, structure and characteristics of the resourcing pro- ally shipbuilding, project funding is generally required to be cesses from appropriations to program-specific budgeting. allocated upfront in annual appropriations bills, limiting the NDIA is currently conducting in-depth research on budget capacity for long-term capital projects that can be funded resourcing and its effects on acquisition within the Defense each year based on success metrics. Federal budgeting rules Department, a literature review on the plethora of scholarly incentivize agencies to buy too much capability upfront. This and expert research on government resourcing and acquisi- approach supplies peak demands, but forces procurement offi- tion, as well as interviews with stakeholders. The final report cials to renegotiate return of funds for unused capability after will be released in Fall 2021. the fact. We intend to highlight the incentives and disincentives Meanwhile, budgeted money is subject to usage restrictions in order to effectively describe resourcing processes and the throughout the process from the time Congress allocates the positive and negative incentives that resourcing produces funds through program management. These limits restrain within acquisition initiatives. NDIA looks forward to sharing fund transfers that might better achieve individual program everything that we learn about the resourcing and acquisi- objectives with available resources, and instead require pro- tion processes as they are today, and to bolstering our thought gram managers to rely on formal and uncertain congressional leadership in this area. ND funding channels. Another aspect worth looking at will be incentives for bud- Jon Etherton is an NDIA senior fellow emeritus and Jacob Winn an get and programming workarounds. Due to rigidity in the cur- NDIA strategy associate. Comments and questions can be sent to rent budget and resource allocation processes, Congress and NDIA’s project team by contacting Jacob Winn at [email protected].

SPECIAL OPERATIONS OUTLOOK 2021

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Sponsored by The firm i3 Microsystems is the major subcontractor for the effort. The first phase — which was awarded in 2018 — focused on recapitalizing a trusted foundry manufacturing center owned by i3 Microsystems in St. Peters- burg, Florida, she said. The second phase is focused on increasing the capacity of the facility Semiconductor and looking for bottlenecks, Leeper said. That way “you can increase capacity and Shortage Shines Light cut down the cycle time for the components, making it more available to the industry and providing more packaging On Weak Supply Chain capabilities.” Phase 2 of the contract runs for three years, she said. BY YASMIN TADJDEH of a switch.’” “It’s really been about keeping the Semiconductors are the foun- Restoring market balance will take communication with the government dation of the advanced technol- time because semiconductor manufac- [open and] getting the processes online ogies that regular citizens and military turing is not suited to rapid and large and ready for production assets to go officials rely on — from cell phones and shifts in demand, he noted. through them,” she said. “We’ve done a laptops to fighter jets. But the global “Making a semiconductor is one of the significant ... [amount of] qualification shortage amidst soaring demand during most complex manufacturing processes,” of the equipment in the first six months the pandemic for electronic devices is he said. “Lead times of up to 26 weeks to get ready for those production pro- illuminating supply chain issues and vul- are the norm in the industry to produce grams.” nerabilities for the United States. a finished chip.” The Defense Advanced Research While the nation is a leader in the The Defense Department is not Projects Agency also recently announced design of semiconductors, in recent immune from the chip shortage, said a three-year partnership with Intel to decades the manufacturing and produc- Sarah Leeper, principal director of expand access to domestic manufactur- tion of microelectronics has moved off- defense systems at Draper Laboratory, a ing capabilities under a program known shore and is now concentrated in places not-for-profit research and development as the Structured Array Hardware for such as Taiwan and China. Officials and organization based in Cambridge, Mas- Automatically Realized Applications, or experts say that creates a major risk. sachusetts. SAHARA. “It is not an exaggeration to say at “There’s definitely a supply chain Meanwhile, Commerce Secretary the moment that we have a crisis in our shortage in general with defense pro- Raimondo noted that semiconductors supply chain,” said Commerce Secretary grams,” she said. “The overall access to are the building blocks of the United Gina Raimondo during an April hear- electronics from a Defense Department States’ future economy, yet the country ing before the Senate Committee on [perspective] is very challenging right finds itself in the middle of a global chip Appropriations. now.” shortage that is hurting businesses in Global semiconductor sales increased Industry consolidation between three every sector. by 6.5 percent in 2020, according to a major companies — Samsung, Intel “Our nation is falling behind its big- paper by the Semiconductor Industry and the Taiwan Semiconductor Manu- gest competitors with regard to invest- Association, “Semiconductor Shortage facturing Co. — is raising considerable ments in R&D, manufacturing and Highlights Need to Strengthen U.S. concern about both supply chain access training,” she said. “It’s time to catch up.” Chip Manufacturing, Research.” and security given that those companies, To do so, the Biden administration, in The global chip shortage is affecting a with the exception of Intel, are based its far-reaching American Jobs Plan, is number of different industries and has offshore, she noted. calling for Congress to invest $50 billion clobbered the vehicle market particu- In March, the Pentagon announced in the National Science Foundation to larly hard, said Falan Yinug, director of it would be working with Draper create a technology directorate that will industry statistics and economic policy — which is known for its packaging focus on fields such as semiconductors at SIA. technology — on an effort to create and advanced computing. “The shortage is largely the result of a sustainable supply of defense-grade However, officials know more money substantial swings in demand due to microchips for its weapon systems. will be needed, Raimondo said. “There’s the pandemic and the increased use of Draper received two contracts — one no way $50 billion is enough. We hope semiconductors in advanced vehicles,” from the Defense Production Act Title to turn the $50 billion into three or four he said. “The semiconductor industry III office for $10 million and another times that leveraging public-private part- is working diligently to ramp up pro- from the Pentagon’s Industrial Base nerships and public and private invest- duction to meet renewed demand. … Analysis and Sustainment office for ment.” photos iStock [However], this supply-demand imbal- $4 million — in support of the second That will ensure the United States can ance cannot be remedied with the ‘flip phase of funding under the program. protect itself, Raimondo said. “We are

20 NATIONAL DEFENSE • J U N E 2 0 2 1 totally reliant on Taiwan and China for to surpass the United States and other — ranges between $10 billion and $40 critical supply,” she noted. leading democracies, McCaul said. billion, according to the report, “Govern- In his Executive Order on America’s That behavior is why he introduced ment Incentives and U.S. Competitive- Supply Chains — which was released in the CHIPS for America Act to incentiv- ness in Semiconductor Manufacturing.” February — President Joe Biden tasked ize companies to increase manufacturing For about $50 billion in federal invest- Raimondo with creating a report that of advanced semiconductor chips in the ment, the United States could build up identifies risks in the semiconductor United States, he said. The initiative was to 19 new semiconductor manufacturing manufacturing and advanced packaging authorized as part of the 2021 National facilities in the country over the next supply chains and offers recommenda- Defense Authorization Act, but now it decade, the study said. That could create tions to address them. must be funded, he noted. more than 70,000 high-paying jobs. Bob Work, former deputy secretary of However, securing supply chains “These potential incentives would defense and the current co-chair of the cannot be done with incentives alone, mark a real inflection point and would National Security Commission on Arti- McCaul said. The nation and its allies reverse the sustained erosion in U.S. ficial Intelligence, said the United States must also moderate the flow of critical share that has been a historical trend currently has a two-generation lead on technologies to China that could threat- over the last 30 years,” it said. “The U.S. China in advanced hardware such as en U.S. national security and foreign would be reestablished as a competi- semiconductors. policy interests. tive location for semiconductor manu- However, “we’re 110 miles away from “The U.S. government must con- facturing, well positioned to continue going two generations ahead to maybe tinue to restrict technology exports to increasing its participation in the global two generations behind,” he said during companies … that partner with the expansion of capacity over the decades the unveiling of the commission’s final CCP’s military and their production of beyond 2030.” report in March. “If China absorbed semiconductors,” he said. This includes The Pentagon’s industrial capabilities Taiwan — which is the source of many firms such as the Semiconductor Manu- report noted that foreign governments, of the world’s hardware — that would facturing International Corp., or SMIC, not companies, pay the lion’s share of really be a competitive problem for us.” China’s top chipmaker. the cost of building fabs. The United States must build a resil- Beijing is projected to dominate global “They take on the other massive set of ient domestic base for designing and semiconductor production by 2030, costs: running the fab,” it said. “The hard fabricating microelectronics, the commis- according to the Pentagon’s Fiscal Year truth is that if the United States does sion’s report said. 2020 Industrial Capabilities Report, not start doing the same, our nation will “Put simply: the U.S. supply chain for which was released in January. continue to see its historically low share advanced chips is at risk without con- Additionally, “current suppliers in of chip production continue to decline certed government action,” the study Taiwan, South Korea, Malaysia and to irrelevance. We will have few new said. “Rebuilding domestic chip manu- elsewhere are in easy range of Chinese fabs. We will have fewer semiconductor facturing will be expensive, but the time missiles, subversion, or air or maritime production jobs. We will have frighten- to act is now.” interference,” the report said. “Thus, in ing vulnerability to foreign cutoffs whose Rep. Michael McCaul, R-Texas, the addition to its growing impact would make our lead House sponsor of the Creating dominance in the area COVID-related short- Helpful Incentives to Produce Semi- of production, Beijing ages look miniscule.” conductors (CHIPS) for America Act of is already in a position The report noted that 2020, said the pandemic and its short- — through its geo- one recent success story age of personal protective equipment graphic and political is the new Skywater illustrates the need for more domestic position — to threaten Technology Foundry production of microelectronics. virtually our entire in Bloomington, Min- “We saw what the [Chinese Com- supply chain through nesota, which is the first munist Party] did when the U.S. needed theft, corruption of microelectronic new semiconductor fab to open in the critical PPE during the height of the products, disruption of supply, coercion United States in a generation. COVID-19 pandemic — they hoarded and other measures even short of mili- Through a combination of Defense the global supply and restricted exports,” tary action.” Department investment and private he said during an event hosted by the In a report released last year by the equity capital, the facility is producing Intelligence and National Security Alli- Semiconductor Industry Association integrated circuits for the automotive, ance in April. “The reason they were able and Boston Consulting Group, the orga- computing and cloud, consumer, indus- to do this is because of their stranglehold nizations said the 10-year total cost of trial and medical sectors, the study said. on that supply chain.” ownership of a new front-end fabrication Additionally, it is making radiation-hard- The Chinese government’s actions facility, or fab, in the United States is 30 ened microelectronics that are critical for should be a “wake-up call” for the United percent higher than in Taiwan, South military space operations. States, he said. The nation must build up Korea and Singapore, and 37 percent to The report applauded the recent pas- its supply chain so it is not held hostage 50 percent higher than in China. sage of the CHIPS for America Act, call- by its adversary’s behavior, he said. That is “an enormous gap” when con- ing it a landmark piece of legislation that Beijing is advancing aggressive policies sidering that the 10-year cost of a state- will open vistas for future creative pool- using non-market subsidies of more than of-the-art fab — including both initial ing of federal and private capital to fund $100 billion in intellectual property theft investment and annual operating costs fabs in the United States. ND

JUNE 2021 • NATIONAL DEFENSE 21 the logistical burden on manufacturers Military Looks for Novel because it increases their ability to dis- tribute on demand at the point of need. Ways to Employ 3D Printing “In the next real conflict, we’re going to have to think of ways to be able to move and be more flexible,” he said. BY MEREDITH ROATEN the armed services are using additive Goldberg pointed to the Marine In April, the Army signed a manufacturing to innovate and make Corps’ partnership with the Defense contract for its “Jointless Hull supply chains more resilient. Innovation Unit — Project ICON — to Project,” which has an ambitious goal of Proponents say additive manufactur- develop the technology to 3D print developing a 3D metal printer so large ing has the potential to save the Defense buildings and other large structures like that it can create a military truck exte- Department a substantial amount of bridges as an example of what will move rior in one giant piece. money in a time when budgets are being the technology forward and spark inno- “The mission is to develop a large-scale squeezed and sustainment costs are vation. tool capable of producing single, jointless stacking up. The advanced technology could be combat vehicle hulls at a near net size of Benjamin Leever, technical director game-changing in a natural disaster set- 30-foot-by-20-foot-by-12 foot in size,” in the manufacturing and industrial ting, he noted. Larry “LJ” Holmes, principal investigator technologies division at the Air Force The military could “in a humanitarian at ASTRO America, the nonprofit that is Research Laboratory, said the service has crisis be able to leave that infrastruc- working with the Army to develop the reduced sustainment costs by printing ture behind to give a foothold for that massive 3D printer, said in a statement. tools and fixturing needed for equip- [affected] nation-state to be able to Additive manufacturing — also known ment maintenance. climb out of whatever disaster that may as 3D printing — has been in develop- Low-cost tooling saves money and be,” he said. ment for decades and the U.S. military time without adding additional branches and the defense industrial base resources to certify the product, have both integrated the advanced man- he said. ufacturing technique in their processes. “We’ve demonstrated that we However, in January the Defense can impact processes and save Department’s Joint Defense Manufac- millions of dollars a year,” he said turing Council, the office of the deputy at a panel in March hosted by director for strategic technology pro- media outlet Defense One. tection and exploitation and the office Because interest from defense of the undersecretary of defense for contractors is high, the Air Force research and engineering released the is working on accelerating the Pentagon’s first additive manufacturing airworthiness certification pro- strategy. cess for components manufac- The document described five goals tured by 3D printers, he noted. for the technology: integrate it into the Texas Air National Guard Lt. Pentagon and the defense industrial base; Col. Alex Goldberg, joint tech- promote agile use; develop best practices nology acquisition innovation and proficiency; secure workflows; and officer at the Defense Innova- support collaboration across services and tion Unit, added that costs can the federal government. be high for components that are Meanwhile, a variety of 3D printing no longer commonly made. programs are proceeding throughout the “You hear these stories of military. $10,000 for a relatively trivial Aaron LaLonde, additive manufac- part,” he said. “The incentive for the While some peer competitors are turing subject matter expert at Army actual manufacturer to be able to pro- outspending the U.S. military in research Combat Capabilities Development duce that part is at a level to make it and development, the Pentagon can Command’s Ground Vehicle Systems worth their time.” leverage advanced manufacturing among Center — one of the participants in Additive manufacturing can help the other emerging technologies to keep the Jointless Hull Project — said the services save funds, officials say. One pace, he said. manufacturing process will ultimately of the Army’s largest efforts includes The COVID-19 pandemic has high- aid warfighters. “This project will scale reviewing weapons systems parts to see lighted the manufacturing competition the benefits of metal additive manufac- which ones could be recreated with 3D with adversary China, in particular. turing to a size range that will allow the printing — particularly those found in President Joe Biden signed an “Executive benefits of the technology to be realized legacy systems, Maj. Gen. K. Todd Royar, Order on America’s Supply Chains” in on larger system scale parts and enable commanding general of Army Aviation February to explore vulnerabilities that next-generation vehicle performance,” he and Missile Command, told reporters in caused a shortage of semiconductors, said in a statement. December. commonly known as chips. (For more on The Army project is one of many ways Goldberg said 3D printing reduces semiconductors, see story on page 20)

22 NATIONAL DEFENSE • JUNE 2021 In 2020, the United States also out in different locations. Advanced Manufacturing struggled to procure personal protec- The commercial and defense indus- tive equipment, while China dominated tries should be developing printers that exports. can recognize conditions and adjust some of the materials the Army is look- The proliferation of 3D printing tech- printing as necessary or find a way to ing into 3D printing to meet potential nology in the defense industry could more closely integrate monitoring into performance requirements, he said. mean “actually being able to bring manu- the printing process, Leever said. Additionally, the Army has prioritized facturing back to the United States and The private sector has traditionally tracking and standardizing quality by be able to create parts and technology played a large role in developing the implementing a “digital thread,” he not- and capabilities that previously had just technology. Companies were responsible ed. Instead of tracking the engineering been too costly to do,” Goldberg said. for approximately 90 percent of all 3D of parts through drawings, the service Meanwhile, federal government policy printing patents from 2015 to 2019, is transitioning to 3D computer aided has also moved to support additive according to a Congressional Research design, or CAD, models. manufacturing. John Wilczynski, execu- Service report, “3D Printing: Overview, Through a digital system, engineers tive director at technology accelerator Impacts, and the Federal Role.” can more easily pinpoint where materi- America Makes, said the Biden adminis- Wilczynski noted that a lack of data als for the product came from, how it tration’s executive order to study supply availability and accessibility also reduces was manufactured, what supply chain it chains could raise awareness about the confidence in additive manufacturing. came from and what parameters were technology’s advantages in emergencies. “It is not insignificant, in terms of time used to print it. America Makes is an additive manufac- or money, to generate enough data to “That’s really starting to get at defin- turing accelerator managed and operated have confidence in the process in mate- ing criticality,” McWilliams said. by the National Center for Defense rial,” he said. “That has historically not Additive manufacturing is an oppor- Manufacturing and Machining. been something that most want to make tunity to learn from the Army’s costly sustainment mistakes, he said. Project ICON is developing the technology to 3D print buildings The service wants to work more and other large structures. closely with commercial industry to acquire cutting edge technology, but it needs to position itself to be able to manufacture its own replacement parts. “They still make it, but we’re going to own the technical data ... so we don’t run into this problem in the future where we’re trying to reverse engineer 40-year-old parts to try and make it again,” McWilliams said. The Jointless Hull Project is one of the first initiatives aimed at helping the Army take control of its own manufacturing. The service built its own 3D printing hub at Rock Island Arsenal, Illinois, where the project will kick off. The facility reached initial operating capa- “Additive is a technology, along with available to the rest of the community.” bility in 2019 and will be fully opera- others, that could put us in a position If manufacturers were more willing to tional this year. where we have the ability to respond share information, it would reduce costs The project is organized through LIFT, more quickly [to] whatever that might to implement the technology, he said. the Detroit-based, Defense Department- be, whether it’s a crisis or supply chain Meanwhile, the Army Research supported National Manufacturing Inno- breakdown,” he said in an interview. Laboratory is looking to expand the vation Institute. While 3D printing has come a long materials that can be 3D printed. Bran- Nigel Francis, the organization’s CEO way, Leever noted that it still needs to don McWilliams, the technical lead for and executive director, said getting tech- overcome consistency and confidence metals additive manufacturing, said the nology to warfighters as quickly as pos- issues. When one part is manufactured, service is putting effort toward “really sibly is part of its mandate. the technology is not advanced enough being able to take advantage of the “Developing the ‘jointless hull’ is photosProjectICON to guarantee that the same part will be manufacturing freedom that additive also aligned with our mission of driving printed exactly the same way at another presents.” American manufacturing into the future printer. Additionally, humidity and com- Next-generation high strength metal by connecting materials to processes and position can affect how parts can turn alloys and lightweight metal alloys are to the systems involved,” he said. ND

JUNE 2021 • NATIONAL DEFENSE 23 source and/or obsolete parts — and is projecting to save billions of taxpayer dollars. Aircraft producers use additive INDUSTRY PERSPECTIVE technology to enhance jet engine performance. For example, GE 3D prints American Resurgence Possible highly efficient fuel nozzles for commercial engines — a part that is 25 percent With Additive Manufacturing lighter, and five times more durable. But it is the nozzles’ design that is particu- n BY DAVID HANDLER AND Employing new manufacturing tech- larly illustrative of 3D printing’s eco- BRETT B. LAMBERT nology, engineers dreamt up part-geom- nomic impact. Because of its 3D printed On Aug. 16, 2012, some 150 leaders etries with complexity only buildable by shape, it eliminated the need to assemble of industry, academia and government additive manufacturing. These designs 20 individual components — many pro- gathered in Youngstown, Ohio, to mark were then transmitted to 3D printers duced by outside and overseas vendors. an historic occasion — the launch of full of metal powder. The printers’ lasers Since the nozzle was to be built in a the national additive manufacturing heated and melted particles together in single print, the 30 percent in cost sav- innovation institute, now called “America thin layers, gradually forming structures ings was passed on to re-invest in other Makes,” focused on accelerating innova- never before built. 3D printing is now innovations; furthering the effect, GE tions in 3D printing. used in lieu of wasteful “subtractive” re-designed helicopter engine parts usu- Then-President Barack Obama her- machining that chips away at blocks to ally built from 300 parts to 3D print just alded the new institute, saying it would produce shapes, or “formative” manu- seven assemblies. “help make sure that the manufacturing facturing — time- and cost-consuming As the Economist Intelligence Unit jobs of tomorrow take root not in places processes that stress parts into particular stated, non-additive “tooling and retool- like China or India, but right here in the forms to service a national industrial ing can swallow up to 93.5 percent of United States of America. That’s how base. That had been viewed as only a traditional manufacturing costs,” but 3D we’ll put more people back to work and goal, but is now a reality. printing often removes much of their use. build an economy that lasts.” Additive presents a far greener option Replacing this critical production pro- While critical to America’s future — using almost just the amount of cess value with additive not only yields competitiveness, innovation remains only material needed for a build — with nov- substantial operational cost-savings, but part of the benefit this manufacturing el designs. Oak Ridge National Labora- also reduces speed of bringing prod- process has demonstrated over the last tory reports that 3D printing cuts down ucts to market. Skipping 18 months of decade. manufacturers’ use of raw materials by tooling allows companies to accelerate We believe it serves as a major 90 percent, transforming manufacturing transition of novel designs, reducing risks economic force as well, aligned with into a more efficient and less wasteful of innovation and invention, as well and Obama’s assertion of contributing to process. focus on the workforce training skills a lasting economy as well as President The Fraunhofer Institute in Germany needed for the next generation of U.S. Joe Biden’s commitment for America to further reports in a recent study that manufacturing. A recent project on an “Build Back Better.” In particular, metal metal fabrication of titanium parts using Air Force F110 additive manufactured additive manufacturing — often referred laser powder-bed additive emits approxi- sump cover spare part recently demon- to as 3D printing — is now poised to mately 70 percent less carbon dioxide strated the path to production without bring back tens of thousands of Ameri- than equivalent production by traditional casting and machining tooling. can manufacturing jobs and drive whole- milling processes. This finding is further The nature of additive technology sale change to U.S. supply chains in just reinforced by the Additive Manufacturer allows for ready and inexpensive innova- a few years if new financial, educational Green Trade Association that highlighted tion in the entire ecosystem, which feeds and defense measures can be compre- additive-enabled design saved “so much a continuous, virtual circle of technology hensively pursued. fuel during flight lifetimes that they development and productivity. To discern necessary policy changes, were a net environmental benefit” over Newer machine modalities like it’s important to review the technol- conventional counterparts. binder jet hold the potential for radi- ogy’s impact and evolution. Since the Today, manufacturers in a variety of cal improvements in cost and speed to late 1980s, metal additive manufacturing industries have moved the technology high-production industries. Continual has been mostly used for tooling and from its prior limited role in producing improvements in software will cut down concept modeling in automotive, medi- prototyping and tooling, to the central the time to qualify parts. Advances in cal and aerospace industries. But in the role in manufacturing products at an powder handling will make the metal 2010s, work in corporate research-and- industrial scale. Medical device compa- printing safer for workers. In short, low development labs and federal agencies nies 3D print porous titanium orthope- barriers to entry will allow for the rapid drove breakthrough applications of the dic implants capable of stimulating bone and decentralized development of new technologies, and by 2015 GE Aviation growth. The Air Force is 3D printing technologies and capabilities. had gained Federal Aviation Administra- metal replacement parts on-demand — Through robust and visionary public- photoiStock tion certification for the first additively instead of relying on costly warehouses private partnerships between companies manufactured production part. or 18-month requisitions of hard-to- and government agencies such as the

24 NATIONAL DEFENSE • JUNE 2021 Defense Department, the base technol- The United States cannot afford to fall Advanced Manufacturing ogy has demonstrated the advantages of behind. additive manufacturing. Additionally, scaling up adoption will Advantages include: better perfor- also require workforce re-training to credit and “skills gaps” were not caused mance; significant waste reduction; ensure U.S. manufacturing keeps pace by COVID-19. But the resulting eco- allowance for new innovation; the ability with technology innovation. This is an nomic crisis exacerbated these shortfalls. to develop workforces to open the future area ripe for continued public-private Now, policymakers need to explore to higher pay and more technologically partnership — with companies offering every tool in the economic toolkit to driven jobs; and supply chain flexibility expanded apprenticeships, and robust revitalize manufacturing. This most for out-of-production parts. investments made in key federal pro- certainly includes 3D printers and the But pursuing innovation-infused grams, ranging from the Department of training of the labor force to take full growth requires a business climate that Commerce’s Manufacturing Extension advantage of this incredible national makes it easier to access advanced tech- Partnership to the National Science capability. ND nology, capital and worker retraining Foundation’s Advanced Technological opportunities — especially by small- and Education program, which helps com- David Handler is general counsel at GE Addi- medium-sized companies. munity and technical colleges upgrade tive and Brett B. Lambert is managing direc- A majority of U.S. manufacturing and modernize equipment and curricula tor of the Densmore Group LLC and former occurs among suppliers to the large final for specific production sectors. deputy assistant secretary of defense for assembly companies. These suppliers Challenges associated with access to manufacturing and industrial base policy. are typically small suppliers, unable to afford capital equipment ranging from $700,000 to $1 million each. Aside from the challenges associated with additive manufacturing skills shortages, the domestic manufacturing economy is limited in its ability to recapitalize new technology and leverage this proven technology to improve the workforce and overall supply chains. These challenges are only compound- ed by decreasing margins afforded to part suppliers and ever-limited credit markets available to make loans to small- and medium-sized manufacturers for machine acquisition. According to the Harvard Business Review, even before COVID-19, small businesses were continually facing dual challenges of banks’ reluctance to offer credit and prime contractors delaying payment. These challenges are resulting in cash shortages for upfront purchases manufacturers require to transition to acquire additive systems. To overcome these challenges, the government should consider new fiscal policies such as targeted tax credits for advanced manufacturing technology, sub- sidized manufacturing equipment bank loans, and government enabled capital expenditures to make advances in critical national security-related manufacturing, including hypersonics and space launch vehicles, through such authorities as the Defense Production Act. The government should present potential remedies to leverage the historic investments across the U.S. industrial base. The Chinese and Europeans both envision additive manufacturing as a key component of their industrial policies.

J U N E 2 0 2 1 • NATIONAL DEFENSE 25 Army Fleshing Out Joint All-Domain Command, Control

BY YASMIN TADJDEH event hosted by George Washington Facing complex battlefields in University’s Project for Media and the future, the Army is hard at National Security in March. work developing a network of intercon- “That’s where you really get the nected platforms that can rapidly send speed,” he said. “That’s where we see information to commanders and troops we’re going to get the overmatch.” and link sensors and shooters. The service is working to ensure that This network — which has been as it builds new systems and platforms billed as an “internet of things” for the that they will be able to tie in together, military — is known as joint all-domain he said. command and control. JADC2 has “You don’t want to build a system become a buzzword in the Pentagon as that doesn’t fit,” McConville said. the armed services focus on digital bits “We’ve got to keep everyone within the and bytes to give them an edge in fights same box, so at the end all the systems against advanced adversaries. come together the way we need them Joint all-domain command and con- for convergence.” paign known as Project Convergence. trol is intended to better connect the Brig. Gen. Jeffery Valenzia, director “Project Convergence provides the forces of the various services to enable of joint force integration within the Joint Force with the opportunity to them to perform more effectively. The office of the Air Force’s deputy chief experiment with the physics of speed Air Force has made strides developing of staff for strategy, integration and and range and the principle of conver- its JADC2-related effort known as the requirements, said the service is excited gence to achieve decision dominance Advanced Battle Management System, about its partnership with the Army on and overmatch our adversaries in or ABMS. JADC2. both competition and conflict,” said The Army is working alongside the “We’ve already seen some phenom- Col. Tobin Magsig, commander of the Air Force as it pursues its JADC2 enal successes as we have aligned our Army’s Joint Modernization Command. vision. Last fall, Air Force Chief of experimentation,” he said. The services The first Project Convergence event Staff Gen. Charles “CQ” Brown Jr. and are exploring how they can better inte- — known as PC20 — took place in the Chief of Staff of the Army Gen. James grate sensors, create all-domain data fall at Yuma Proving Ground, Arizona. McConville entered into a two-year management techniques, enable secure During the forthcoming PC21 exercise memorandum of understanding to bet- processing, improve connectivity and this year, the Army will focus on joint ter collaborate on the development of ultimately bring warfighting effects integration, Magsig said during a call these capabilities. They added the word together in an integrated way, he added. with reporters in April. “combined” in front of it, modifying the “All this is built upon a digital archi- “We designed Project Convergence 21 acronym to CJADC2. tectural standard,” he said. “Through as an experiment that maximizes learn- “We are converging weapon systems our interactions with the Army and our ing opportunities for operational com- by ensuring our six modernization other joint partners, our coalition part- manders as they incorporate emerging priorities and significant moderniza- ners, this is how we’re moving through joint technologies, artificial intelligence tion efforts are integrated and adapt- the complexities of future warfare.” enabled decision-making agents, and a able,” said McConville during remarks The Navy is also expected to con- state-of-the-art network to solve joint at the Association of the United States tribute to JADC2 and is pursuing these tough problems,” he said. Army’s Global Force Next Conference capabilities through its Project Over- But before the Army goes into the in March. “We are assuring our systems match. desert for the next Project Convergence support combined joint all-domain com- Meanwhile, the Army has been work- event this fall, it is executing experi- mand and control.” ing hard to align its ambitious modern- ments in a laboratory environment to The Army is merging information by ization strategy — which focuses on six ensure proper integration, Magsig said. harnessing the power of artificial intel- technology portfolios including long- Those are taking place at the Joint Sys- ligence and integrating that with data range precision fires, next-generation tems Integration Lab, or JSIL, at Aber- from low-Earth orbit satellites in the combat vehicles, future vertical lift, net- deen Proving Ground, Maryland. cloud. That will facilitate linking joint work, air-and-missile defense and soldier The lab is linking joint sensors to sensors and shooters to the right com- lethality — with JADC2, said Maj. Gen. joint shooters, said Michael Monteleone, mand-and-control node, he said. Peter Gallagher, director of the network director for the space and terrestrial Bolstering machine-to-machine data cross-functional team at Army Futures communications directorate at Army exchange is going to be extremely Command. Research, Development and Engineering important in future fights, McConville To better develop the concept, the Command’s Communication-Electron- noted during a Defense Writers Group service has embarked on a learning cam- ics Research, Development and Engi-

26 NATIONAL DEFENSE • JUNE 2021 all-domain command and control, Mon- “We’re looking at really how do we teleone said. While the lab is based at optimize a mission partner environment Aberdeen, much work is being executed with our coalition partners, leveraging remotely, he said. the NATO standards for connectivity The lab is a place where the Army and making sure that as we roll out can buy down risk and shake out tech- solutions in the future, we are always nology, Gallagher said. Doing so will capable of operating at the secret releas- allow the service to interconnect with able level … with one mission partner joint partners and work through joint or multiple mission partners,” Gallagher mission threads that will enable not only said. the acceleration of the sensor-to-shooter Meanwhile, Marine Corps Lt. Gen. kill chain, but also synchronize other Dennis Crall, director of command, warfighting functions, he added. control, communications and comput- The JSIL is working closely with ers/cyber and chief information officer industry partners, Monteleone noted. for the Joint Staff, J6, said there is pres- “Our relationship with the indus- sure within the Pentagon to deliver on try is absolutely critical to all of our JADC2. modernization efforts,” he said during There are four components that must a panel discussion at the Global Force be executed effectively in order to make Next Conference. Beyond traditional the concept work, he said. contractual mechanisms, the Research, “That first one has already launched, Officials and staff take part in a JADC2 Development and Engineering Com- and that was really the rebranding and system demonstration. mand encouraged industry to explore re-establishing of our JADC2 cross- cooperative research-and-development functional team,” he said during an agreements with the science and tech- April conference hosted by C4ISRNET. neering Center. nology community, he said. “That’s the engine room behind doing “We see the JSIL as playing an abso- CRADAs will be leveraged through- a lot of the detailed work that leads to lutely critical role in this initiative and out the command’s activities, including real milestones and deliverables.” … [getting] after what I would consider Project Convergence, and other key The next is the release of a JADC2 a very important strategic goal,” he said. experiments, he said. Such agreements strategy. Pentagon leadership has been As Project Convergence 20 was allow industry and government to share briefed, and Crall said he hoped Secre- being executed, the Army realized that data and conduct real time DevSecOps tary of Defense Lloyd Austin III would prior to soldiers getting into the field, improvements to software systems, and soon sign off on it. That document will researchers needed time in a controlled enable an actionable exchange of opera- codify the Defense Department’s vari- and instrumented laboratory environ- tional threat information, he said. ous lines of effort and guide its approach ment to address integration challenges, There are more than 100 active CRA- to delivering capabilities, he said. Monteleone said. DAs within the command, and about The next item is a posture review, or That is needed not only for “the net- half of them focus on communication gap analysis, which is nearly complete, work configuration, but really to under- and network technology, he noted. Crall said. stand the data and the environment,” he “DEVCOM has proven that this “If the strategy is that benchmark of said. “Getting data to where it needs to approach leads to a tighter coupling what you want to do, the posture review go is, as we all know, not a trivial task.” between government projects and is that document that comes back and Officials at the Joint Systems Integra- industry in order to mature technologies says, ‘Here’s what you’re missing in tion Lab are also dedicating time to and spark future collaboration that best order to get there,’” he said. “That’s a exploring the JADC2 concept, which address the needs and gaps of the Army,” pretty significant requirement for fund- will coalesce with Project Convergence Monteleone said. ing plans to make sure that these things 21, he said. Gallagher said the Army is also con- are resourced properly.” Lehman H. Michael Class 2nd Specialist Communication Mass Navybyphoto “We decided amongst the Army sidering how it will involve coalition The final piece of action — which teammates here [that] we have a tre- partners in its vision of JADC2. Crall called the most important — is mendously powerful enterprise that if “Coalition interoperability is abso- the development of an implementation we can pull it together and leverage it lutely critical,” he said. “We’ve got to be plan. in a particular way, that we could really thinking through standards for coalition “Everything that happens to the left put a heck of an Army offering into the interoperability in everything we’re of the implementation plan is just plan- JADC2 and joint community,” he said. doing.” ning,” he said. “The implementation plan “We pulled together a federation of key While Project Convergence 22 next lays down the plan of attack and mile- laboratories across our enterprise, and year is slated to be coalition-focused, stones, the very specific delivery dates really what you get out of that is it’s the Army is not waiting to get partners and what type of delivery we’re expect- not just the systems and the stuff in the involved, he noted. It will soon hold an ing and when. … We’ve just now started laboratories, it’s the people and the sub- exercise with III Corps that will feature to identify the leads for those discrete ject matter expertise.” divisions from the United States, United pieces of JADC2 and when those deliv- The JSIL serves as a hub for joint Kingdom and France. ery orders and timelines will be met.” ND

JUNE 2021 • NATIONAL DEFENSE 27 SIBLING RIVALRY: Military Services in High-Stakes Tussle Over Long-Range Fires

BY JON HARPER “Sometimes, you know, people say hosts Air Force bombers. But most of Air Force and Army leaders certain [critical] things, but … at the the long-range fires the Army wants to and their supporters are trading chief level we’re not going down that acquire still probably wouldn’t have barbs over which branches of the mili- road. We’re really trying to work togeth- enough range to reach Chinese targets, tary should be investing in long-range er,” he added. Pettyjohn said. However, the Long- strike capabilities. The outcome of the The Army’s ground-based long-range Range Hypersonic Weapon would be an dispute has major implications for ser- fires will give combatant commanders exception. vice budgets and warfighting roles. additional force employment options “Guam is definitely relevant for any Following nearly two decades of coun- and present “multiple dilemmas” to sort of conflict with China,” Pettyjohn terinsurgency operations, the Army has adversaries, McConville said. said. “LRHW could be based there and made long-range precision fires its top In an op-ed for Breaking Defense, actually range targets of interest.” modernization priority as the Defense retired Gen. Robert Brown, executive However, the platforms would be Department refocuses on great power vice president of the Association of the expensive and the Air Force and Navy competition. Major initiatives under- United States Army and former com- are also pursuing their own air-launched way or under consideration include mander of U.S. Army Pacific, called and sea-launched hypersonics that they the Extended Range Cannon Artillery; Ray’s comments “a stunning slap at a plan to field in the next few years, she Precision Strike Missile; Strategic Long- sister service … at a critical time in the noted. Range Cannon; Long-Range Hypersonic defense budget process.” Mackenzie Eaglen, a defense bud- Weapon; and modification of existing Numerous exercises and wargames get expert at the American Enterprise Navy SM-6 and UGM-109 missiles for have demonstrated the “impressive capa- Institute, said affordability is the central ground launch, according to the Con- bilities” that ground-based long-range question in the long-range fires debate. gressional Research Service. precision fires would give a joint force “Duplicity is unaffordable right now, The Army plans to spend billions of commander in the Indo-Pacific, Brown but that doesn’t mean it’s unwarranted,” dollars pursuing these types of systems. wrote. she said in an email. Congress, which However, some officials in other branch- Ray and other observers have holds the power of the purse, will be the es don’t believe those are smart invest- expressed doubt that any countries in final arbiter on that issue, she noted. ments as the U.S. military gears up for a the Asia-Pacific will allow the Army to The Mitchell Institute recently potential fight in the Indo-Pacific region base its long-range systems on their ter- released a new policy paper, “Under- against China and defense budgets are ritory. standing the Long-Range Strike Debate,” expected to remain relatively flat or “If you’re building new capabilities that compares the ranges, costs, target decline in coming years. and potentially having to create new suitability and other attributes of the “It’s a stupid idea to go invest that force structure … there are costs associ- long-range missiles the Army intends kind of money and recreate something ated with that,” said Stacie Pettyjohn, to acquire to those of precision-guided that [the Air Force] has mastered,” Air director of the defense program at the munitions delivered by U.S. military Force Global Strike Command Com- Center for a New American Security. aircraft. mander Gen. Timothy Ray said in a “If we don’t know if they will actu- Army missiles would cost millions of recent podcast by the Mitchell Institute ally be able to contribute to deterrence dollars per shot, whereas bombers are for Aerospace Studies, in which he and warfighting in the Pacific theater reusable and can employ larger numbers touted the capabilities of his service’s because no one wants to host them, of lower-cost weapons, according to the long-range bombers. that’s a potential issue.” study. Retired Air Force Lt. Gen. David Why aren’t U.S. allies and partners lin- “Increasing the U.S. military’s inven- Deptula, dean of the Mitchell Institute, ing up to have the systems on their soil? tory of combat aircraft capable of said the Army is “aggressively trying to “The countries that host them have attacking multiple targets per sortie grab missions that they think will help to worry that they might become a tar- has greater potential to increase DoD’s them become more relevant in our new get [during a conflict], or it might just long-range strike capacity in a period of national security strategy, and long-range antagonize China,” Pettyjohn explained. flat or declining defense budgets,” wrote strike is at the top of that list.” While nations such as Japan are home authors Mark Gunzinger, director of When asked about Ray’s criticism, to other types of U.S. military assets future concepts and capability assess- Army Chief of Staff Gen. James including air bases and naval forces, ments at the Mitchell Institute, Lukas McConville suggested service parochial- long-range missiles are different in that Autenried, senior analyst at the Mitchell ism is at play. they are “purely offensive systems” that Institute and Bryan Clark, director of “Where you sit sometimes depends on could raise concerns about first strikes the Center for Defense Concepts and where you stand,” he said. “Your view of and crisis instability, she added. Technology at the Hudson Institute. the future fight may be different from Systems could be stationed on Guam, The Defense Department “should your perspective.” a U.S. territory in the Pacific that also seek the best, most cost-effective solu-

28 NATIONAL DEFENSE • JUNE 2021 the Biden administration, according to the 2022 budget outline it released in April, which called for a “responsive mix” of such capabilities. But it remains to be seen how funding will be allocated in coming years for these types of systems and how roles and missions will evolve. “It’s likely going to be a simmer- ing issue underneath the surface Precsion Strike Missile rendering for all the services, because if budgets continue to remain flat or decline everyone’s going to be cry- tions instead of allowing ini- to point out the basing depen- ing for more [money], and they all have tiatives that create excessive dencies that other services have ambitious modernization agendas,” Pet- SCAN redundancy,” the report said. THIS and that their systems are freed tyjohn said. However, some analysts say IMAGE from those constraints of needing Air Force Chief of Staff Gen. Charles the Army has the right idea in access to foreign territory,” Petty- “CQ” Brown said there needs to be a pursuing long-range fires. john said. “The Navy has stood on discussion about service roles and mis- “Distributed strike across the side right now and let these sions as the military fleshes out the new multiple domains is a strategy to See other two services go at it a little Joint Warfighting Concept, including counter China’s operational-geo- PrSM’s bit. But it’s certainly a part of the looking at “overages of capability.” first graphic military advantages,” said Eric flight conversation because it does have “I have talked to Gen. McConville Sayers, a visiting fellow at AEI who long-range strike capabilities, too.” about this,” Brown told reporters at a specializes in Asia-Pacific security policy Adm. Phil Davidson, who recently Defense Writers Group event. “I think and defense technology. “I favor a strate- served as commander of Indo-Pacific there will be an ongoing dialogue gy of duplication where each of the ser- Command, has been supportive of between the services on this as well and vices, in a coordinated but overlapping ground-based long-range fires and called with the Joint Staff and the JROC,” he manner, present the [People’s Liberation on Congress to provide $3.3 billion added, referring to the Joint Require- Army] with a targeting dilemma across for such systems in fiscal years 2022 ments Oversight Council. the air, land, sea and subsurface.” through 2027 as part of the Pacific Meanwhile, analysts say the Office of “I don’t think we want the PLA to Deterrence Initiative. the Secretary of Defense needs to take a believe they can paralyze America’s “Indo-Pacom requires highly surviv- firm hand. power projection forces by just target- able, precision-strike fires featuring “In some ways it is natural for these ing a carrier strike group and several air increased quantities of ground-based inter-service fights to occur and it can bases,” he added. missiles … capable of ranges over 500 even be healthy if it is done in a profes- Land-based anti-ship missiles could kilometers” to assure freedom of action sional manner,” Sayers said. “However, play an important role in a large mari- for U.S. forces, he said in March testi- this also speaks to the need for strong time theater like the Asia-Pacific, he mony to the Senate Armed Services civilian leadership at the Pentagon to noted. Committee prior to his retirement. set a clear direction on where we need Persuading allies to host U.S. plat- Davidson was succeeded by Adm. to go.” forms isn’t an impossible task, Sayers John Aquilino following a change-of- Eaglen said a roles and missions said. “There is no doubt alliance con- command ceremony in late April. review is long overdue but some senior versations about rotating these systems The Navy’s rhetoric could shift Pentagon leaders “don’t seem inclined to into a location like Japan in the future depending on how the budget situa- undertake this difficult task.” will be difficult,” he said. “But the real- tion plays out, Pettyjohn said. However, Vice Chairman of the Joint Chiefs of ity is that China has shifted the military “ganging up on the Army” in the long- Staff Gen. John Hyten said it would be balance so rapidly that … if the United range fires debate could be problematic premature to conduct a review now. States expects to uphold its security because the Marine Corps — which is “We’ll have the fruition of the Joint commitments to its allies then … nego- part of the Department of the Navy — Warfighting Concept in the next decade. tiations about the role of ground-based also wants ground-based missiles includ- And then once we know how to do that fires are going to have to occur.” ing hypersonic weapons that could be and we’ve demonstrated that, we may Sayers anticipates that in three to five deployed on vehicles. not be organized correctly, we may not years the U.S. military could have the “People might point to the fact that have the right roles and responsibili- necessary infrastructure in place at key it’s one of the Marine Corps’ acquisi- ties,” he said in February during an event

Lockheed Martin image Martin Lockheed locations in Japan. tion … priorities for the [expeditionary hosted by the Center for Strategic and Notably, Navy leaders have largely advanced base operations] concept,” International Studies. “But why the heck refrained from criticizing the Army for Pettyjohn said. “You can’t have it both would you stop and try to figure that pursuing long-range fires. ways.” out when you actually don’t know the “The Navy is normally the first service Long-range fires will be a priority for answer?” ND

J U N E 2 0 2 1 • NATIONAL DEFENSE 29 TURBULENCE AHEAD? QUESTIONS ABOUT COSTS, FORCE MIX COULD SPELL TROUBLE FOR F-35A

BY MANDY MAYFIELD made to existing legacy aircraft in order to accommodate Following years of ups and downs, the Air Force’s buying the full planned number of F-35s.” F-35A joint strike fighter is once again embroiled Currently, the Air Force plans to procure 1,763 F-35As in controversy as questions emerge about costs, the future over the course of the program. employment of the aircraft and how many the service needs Rep. Adam Smith, D-Wash., chairman of the House for high-end fights. Armed Services Committee, urged his fellow committee The Pentagon, lawmakers and some of the nation’s top members in March to find a way to “cut our losses” on the defense contractors appear to be at odds over how best to F-35 program. move forward with the fifth-generation aircraft, which has “I want to stop throwing money down that particular rat- been dogged by a number of issues throughout its history. hole,” he said at a Brookings Institution event. Todd Harrison, director of the Aerospace Security Project Rep. Donald Norcross, D-N.J., chairman of the House at the Center for Strategic and International Studies, said Armed Services tactical air and land forces subcommittee, the sentiment around the program has started to shift both declared in April during a joint hearing on the F-35 program within the Defense Department and in Congress. that he would not support plussing up joint strike fighter “For the past seven years, the F-35 program has kind of procurement in the upcoming fiscal year 2022 budget — as been riding high, especially in Congress,” he said in an inter- Congress has done in recent years — unless a number of view. “What has held back the F-35 program in the more issues with the aircraft are addressed. recent years is just the availability of funding within DoD, “The tactical air and land subcommittee Air Force photo by Tech. Sgt. Jensen Stidham Jensen Sgt. Tech. by photo Force Air but now I think the sentiment is starting to shift, because has been supportive of this program in the SCAN folks are starting to question the operation and sustainment past, but as we’ve said many times, we don’t THIS IMAGE costs of the platform.” have unlimited resources,” he said. “If this The Pentagon and lawmakers are closely examining the program continues to fail to significantly aircraft’s costs because of overall budget constraints, he said. control and reduce actual and projected “They’re also starting to look at alternatives, [such as] sustainment costs, we may need to invest in remotely piloted systems and sixth-gen concepts for fighter other, more affordable programs.” See the jets,” he said. “Members in Congress are looking at costs and Operations and maintenance costs for F-35A looking at the sacrifices [and] the cuts that will have to be the F-35A are currently about $36,000 in action

30 NATIONAL DEFENSE • J U N E 2 0 2 1 TURBULENCE

COVER STORY per flight hour. Program officials aim to reduce it to $25,000 by 2025. The procurement cost for the fighter jet is currently just under $80 million per plane. Given the overall affordability issues that exist with the aircraft, “I would not support any requests for additional aircraft beyond what is contained in this year’s president’s budget request,” Nor- cross added. Rep. John Garamendi, D-Calif., chairman of HASC’s readiness subcommittee, also criticized the initiative. “The F-35 is the most expensive program in the history of the Department of Defense and the sustainment costs are expected to exceed $1.2 trillion over the life of the program,” Garamendi said. “The program is over budget. It fails to deliver on its promised capabilities and its mission capability rates do not even Rep. Doug Lamborn, R-Colo., said the According to an April report from begin to make the service thresholds.” Pentagon and stakeholders must work the Government Accountability Office Industry’s solution to these problems together quickly to address affordability titled, “F-35 Sustainment: Enhanced often include asking for additional fund- concerns. Attention to and Oversight of F-35 ing, he said. “The F-35 is a vital national security Affordability Are Needed,” the Air Force “Don’t expect more money,” he said. investment with a planned lifecycle of needs to reduce estimated costs per tail “Do not expect to have more planes 66 years, [however], I am concerned per year by $3.7 million by 2036 or it purchased than authorized in the presi- that estimated life cycle sustainment will incur $4.4 billion in costs beyond dent’s budget.” costs continue to increase,” he said dur- what it currently projects it could afford As of press time, President Joe Biden ing the hearing. “While procuring the in that year alone. had not released his formal budget F-35 capability is vital to national secu- “Air Force officials told us that the request for fiscal year 2022. rity, we need to make sure we can afford Air Force will not be able to afford the Republican lawmakers also voiced to employ it well into the future.” cost of sustaining the 1,763 aircraft it their concerns about the program facing Time is of the essence and it will be plans to purchase without dramatic cuts cuts if officials are unable to drive down more difficult to reduce sustainment to sustainment costs of the F-35A,” the sustainment costs. costs as the fleet grows, he added. GAO report says. Reducing lifecycle costs is an issue prime contractor Lockheed Martin has Wargame Yields Lessons for F-35 Employment in 2030s invested nearly $400 million dollars to address, said Greg Ulmer, the company’s n The F-35, a fifth-generation fighter jet, was incorporated into an Air Force executive vice president for aeronautics. “Futures Games” exercise that was set in an imagined 2038 scenario and The firm is working on an operations designed to explore the mix of capabilities required to defeat near peer adversar- and support affordability effort which ies. will focus on reducing manpower and By that time, the stealthy platform will have reached the mid- to end-point material costs, he said during the hear- of its lifecycle. That means the Air Force will have to employ different mixes of ing. aircraft in future conflicts, a service spokesperson said during an interview. “We are decreasing the people During the tabletop exercise — which took place late last year — the service required to support and maintain the recognized that “with our adversaries growing their missile capabilities, for us to F-35 by digitally transforming through have a fighter fleet that accomplishes objectives, we need to invest more in base robotic process automation, streamlining defense and agile combat employment,” he said. flight-line operations, and establishing a The service experimented with Joint All-Domain Command and Control dur- financial structure to decrease sustaining the exercise. JADC2 is envisioned as a way to better link the armed forces’ ment labor rates by more than 20 per- TompkinsAnastasiaForce Sgt. Air byphoto sensors and shooters on the battlefield. cent,” Ulmer said. JADC2 insights gleaned during the experiment were marked for further study The company is using analytics and and will inform recommendations about how the joint strike fighter can be prognostics to improve maintenance employed in the future, including how it can pass data back and forth between predictability, which will facilitate cut- different platforms such as other fifth-generation aircraft or legacy fourth-gener- ting costs, he said. ation systems. The Air Force sees “connectivity really making a difference in how However, Ulmer stressed that Lock- we wage war in the future,” the spokesperson said. - MANDY MAYFIELD heed Martin cannot accomplish the program’s affordability goals without efforts

32 NATIONAL DEFENSE • JUNE 2021 tactical fleet, including less costly AIR POWER fourth-gen fighters, sixth-gen platforms that are expected to emerge for the service’s Next-Generation Air Dominance is not going to get more affordable program, and drones. To aid in these to operate unless we can reduce the decisions, Brown announced in February demand in the prices for [labor],” he that the service would conduct a tactical said. “The program itself and Lockheed air study to determine the proper mix Martin are working on reliability and of aircraft the service needs for future maintainability initiatives to try to battles. increase the amount of time that parts “That requires some modeling and on the airplane spend ... ‘on wing.’” simulation and analysis and that’s what The concept revolves around the idea I plan to do here over the upcoming that the less often a part breaks, the months,” Brown told reporters in Febru- fewer amount of times it needs to be ary. removed from an aircraft, which equates Although the Air Force is exploring to less time maintainers spend fixing the its options, the F-35 will still be the cor- airplanes.

F-35A nerstone of the service’s fighter fleet for “It’s fewer spare parts that we have to decades to come, said Brig. Gen. David buy [and] it’s fewer parts that we have Abba, director of the Air Force’s F-35 to push through the repair network — from its partners and customers. Integration Office. whether that’s the Air Force or a con- Lockheed’s portions of the sustain- The jet ensures the service’s ability tractor,” he said. “All of those things will ment enterprise accounts for approxi- to operate in highly contested environ- work to drive down costs.” mately 39 percent of the total O&S cost ments where peer competitors have Although there is growing momen- of the F-35, with the government and already fielded advanced capabilities tum to drive down sustainment costs Pratt & Whitney — the aircraft’s engine that are improving rapidly, he said in an for the aircraft, Abba noted that as the manufacturer — accounting for the interview with National Defense. program matures, that becomes more remainder, he said. “We have to consider how the F-35 difficult. “Lockheed Martin stands ready to fits in with the rest of the fighter force “We’re at a level of maturity within partner with our service customers to structure to accomplish the missions the structural framework of the weap- drive enterprise-wide affordability while that we need to accomplish,” he said. ons system … [where] driving out a lot scaling the fleet,” he said. “We believe Every decision the service makes of costs from sustainment is really, really the most effective way to achieve these is predicated on a series of facts and going to be challenging to do because results is to establish long-term sustain- assumptions, and over time the Air we’re 20 years into the development ment partnerships that eliminate the Force has to revisit them to see if the process of this,” he said. “We will contin- cumbersome annual contracting process ideas underpinning its decisions have ue to make some progress on that, but I and provide more stability for long-term changed, he said. testified to the fact that cost reduction investment.” “That’s effectively what we’re doing initiatives alone are going to be insuf- Matthew Bromberg, president of Pratt within the fighter force study,” Abba ficient.” & Whitney’s military engines division, added. Abba noted that an alternative to low- said the company recognizes afford- From an affordability perspective, the ering operations costs would be for the ability is the most pressing challenge the purchase price of the Air Force’s variant Air Force to be allotted more funding. program is facing and is committed to of the airplane is exactly where the ser- “Another way that you could do this reductions. vice wants it to be, Abba said. is to expand the amount of budget that “Our successful war on costs program “We got down beneath $80 million a is available,” he said. — which reduced engine cost by 50 copy for the F-35A,” he noted. Although there are differing opinions percent — … will provide a blueprint Meanwhile, when it comes to sus- on how to best move forward with to overcome the production headwinds,” tainment costs, there is a disconnect the F-35, it remains to be seen what he said during the hearing. “Sustain- between how much it costs the service is appropriated in the fiscal year 2022 ment cost reduction can be and will be to operate the aircraft and the funding budget, Harrison noted. achieved by leveraging our experience Congress allots to the Air Force, he said. “Right now, we’re just hearing words, from other programs. … In particular, This gap impacts unit readiness, which we’re hearing rhetoric. What ultimately the F119 [engine] playbook will help translates into reduced flight hours and matters at the end of the day is what us reduce engine maintenance costs by lower mission capability rates, he said. Congress puts in the appropriations bill,” 50 percent through health monitoring, In order to address this, the F-35 Inte- he said. “That’s going to be the real test repair development and depot produc- gration Office is in regular talks with the of the program, is how many planes are tivity tasks.” Joint Program Office and other stake- appropriated and in FY ’22 does Con- Meanwhile, Air Force Chief of Staff holders, Abba said. The Navy, Marine gress continue to add more planes than Gen. Charles “CQ” Brown has begun Corps and international partners are also requested, or do they only provide fund- looking at a variety of other procure- buying variants of the jet. ing for the number of planes that were ment options for the service’s future “At the end of the day, the airplane requested.” ND

J U N E 2 0 2 1 • NATIONAL DEFENSE 33 to be 30 percent less expensive. It has Transition to demonstrated significant improvements in data processing and synchronization, New F-35 Logistics which will allow users to host multiple squadrons on a single kit and is expected to yield a large reduction in procurement System Hits Headwinds costs and system administrators, according to JPO and Lockheed officials. However, the transition effort is BY JON HARPER improved cybersecurity.” already facing setbacks. The effort to transition to a Last year, officials announced plans Fick noted that in early 2020 he had new and improved logistics to move to a new system known as the committed to “a very aggressive timeline” system for the F-35 joint strike fighter is Operational Data Integrated Network, or for moving from ALIS to ODIN. The facing delays due to funding constraints ODIN. It is being billed as a more user- JPO aimed for the latter to reach full and other challenges. The setback comes friendly, integrated information system to operational capability and full system as the program is under pressure to include modern hardware, architectures, deployment by the end of 2022. improve operations and maintenance software development methods, data “What we’ve learned over the course and to control costs. environments and platforms. of the last year is that that transition The legacy Autonomic Logistics Infor- The transition is being led by the Joint in that amount of time … is not going mation System, or ALIS, was designed Program Office with support from Lock- to be possible,” he told lawmakers. “We to support F-35 operations, mission heed Martin, the prime contractor for underestimated the complexity of depre- planning, supply-chain management the F-35 and ALIS. cating ALIS capabilities while migrating and maintenance. However, it has been “Our shared goal is continue improv- to ODIN. … It will be an evolution, not plagued by problems over the years. ing speed, minimizing hardware foot- a [quick] switch.” “The system is not user-friendly and print, reducing required labor, and Another setback occurred when Con- does not provide the sustainment-related enhancing user experience and overall gress appropriated research, develop- capabilities that were promised,” said capability,” said Greg Ulmer, Lockheed’s ment, test and evaluation funding for Diana Maurer, director of defense capa- executive vice president of aeronautics. ODIN in fiscal year 2021 that was 42 bilities and management at the Govern- The aim for ODIN is to improve percent less than what was requested ment Accountability Office. maintenance efficiency, inventory man- and required, Fick said. As a result, the Issues with electronic equipment log- agement and responsiveness, he added. program is going to take a “strategic books have been well documented. Some significant progress has been pause” and update the strategy for mov- “These electronic records reside within made since the announcement of transi- ing from ALIS to the new system. ALIS and are supposed to alert main- tion plans. Officials did not say how long the tainers when parts need to be replaced,” A capability needs statement and user pause would last or how much the among other uses, Maurer said in tes- agreement, which established the foun- transition will be delayed by the new timony to the House Armed Services dational requirements for the ALIS to approach. subcommittees on readiness and tactical ODIN migration and laid out how users Work is underway to develop the air and land forces, in April. “However, will stay engaged during development overarching enterprise architecture to incorrect, missing, or corrupt electronic activities, were put in place late last year. guide transition activities. The JPO will records within ALIS continue to affect Additionally, the JPO and Lockheed update its development plan based on day-to-day operations on the flight have “established a contract that cap- the revised strategy, available resources lines. This situation has resulted in the tured data rights, frequent software and user input, Fick said. unnecessary grounding of ‘healthy’ F-35 deliveries, and proper data marking for “We need to continue to improve the aircraft, as well as a culture of otherwise modern software development,” Fick functionality of ALIS in the near term, unnecessary manual workarounds to cir- said. as we ensure that the ODIN structure cumvent the electronic records problem ODIN software has been created using that we put into place from a hardware at the squadron level.” modern tools, techniques and standards perspective, from a data environment Air Force Lt. Gen. Eric Fick, program with adherence to U.S. government best perspective, and from a software per- executive officer for the F-35 Joint Pro- practices for DevSecOps, a Lockheed spective, is what the users need,” he told gram Office, noted that the Autonomic Martin spokesperson said in an email. lawmakers. Logistics Information System has been a The company has demonstrated data Laura Seal, a JPO spokesperson, noted source of struggle. integration in a government-managed that officials have not completely paused “ALIS is a complex system with data environment, Fick noted. the transition effort. numerous documented shortfalls and In September, a new Lockheed-built “The JPO slowed the pace of — but technical challenges,” he said in testi- ODIN hardware kit was tested at Marine has not stopped — development activi- mony. Additionally, “the outdated ALIS Corps Air Station Yuma, Arizona. The ties for both our government and indus- system architecture — which is over 15 kit, which can run both ALIS and ODIN try partners,” she said in an email to years old — prevents us from taking full software, is 75 percent smaller and National Defense. “The ‘strategic pause’ photoiStock advantage of modern technologies, mod- weighs 90 percent less than the legacy … refers to a review of the JPO’s overall ern software development practices, and SOUv2 ALIS hardware, and is projected strategy to evolve ALIS to ODIN across

34 NATIONAL DEFENSE • JUNE 2021 all elements — modern hardware, archi- until after release to the field, requiring AIR POWER tectures, software development methods, significant rework and patching.” data environments and platforms.” The JPO intends to release frequent The program office will continue to software updates to support ODIN. applications, and user interfaces that field and leverage the new ODIN hard- “An increased frequency of new make it a better system from the ground ware kits as it matures the overarching software deployments may stress the up that we [the JPO] own in its entirety, transition strategy, she noted. More kits capacity of cybersecurity test teams to and we will then execute.” are expected to be rolled out later this thoroughly evaluate each update,” the Maurer noted that there has been year. report said. some encouraging progress, highlighting It has not yet been decided what addi- Dan Grazier, military fellow with the importance of the capability needs tional ODIN hardware will be required, the Project on Government Oversight, statement. but “Lockheed Martin is partnered with warned of “the real possibility that “That document contains some perfor- the JPO to support any requested ODIN ODIN, like ALIS, will have significant mance measures for ODIN, which did hardware activities including design, cyber vulnerabilities simply because it not exist for ALIS,” she said. testing, fielding and sustainment,” a resides in the cloud.” However, “we still have questions company spokesperson said in an email. ALIS has set a low bar for judging about the overall end state for what “As the transition from ALIS to ODIN the relative success of the new logistics ODIN is designed to be,” she added. progresses, Lockheed Martin will pro- system, Grazier said in a POGO report “There are still a lot of unanswered ques- vide support as opportunities become released in February, “Is the F-35 Pro- tions about some of the fundamental available and ODIN’s needs are further gram at a Crossroads?” issues that we raised in our work on defined by the JPO.” “While almost anything might be an ALIS about cloud usage and software The program delay comes as the Air improvement over the ALIS disaster, development models and ensuring user Force is facing F-35 availability and ODIN … is already stumbling right out feedback, and some other things. … We affordability challenges, noted Brig. Gen. of the starting block,” he said. “Based are cautiously optimistic, but we’ll stay David Abba, director of the Air Force’s on the history of the F-35 program, it is studiously skeptical.” F-35 Integration Office. difficult to see whether a workable and Douglas Birkey, executive director In terms of availability, one of the top secure maintenance and logistics net- of the Mitchell Institute for Aerospace needs is to transition from Studies, applauded the effort ALIS to ODIN, he said. “The to upgrade the F-35’s logistics Maintainers current Lockheed-Martin working enterprise, and expressed opti- ALIS architecture limits on an F-35. mism that it will be successful. operational and deployment “It is important that the capability.” system supporting the aircraft The transition funding evolve to stay relevant, secure, shortfalls are just one of a cost effective, portable, viable, number of “affordability resilient,” he said. “ODIN pressures” the program is fac- is very important with that ing, he added. because it is a much more Fick said the plan is to modern approach.” invest a total of $471 million Birkey knocked lawmak- into both ALIS and ODIN ers for criticizing the program over the course of the future while also cutting funding for years defense program during the effort. the transition. The Pentagon “It speaks to … some of the has already sunk about $1 billion into work will ever be delivered.” challenges where you see folks turn up ALIS. Rep. John Garamendi, D-Calif., chair- the rhetoric on the Hill, yet at the same Observers are expressing concerns man of the House Armed Services sub- time they’re cutting out valuable or criti- about the initiative. committee on readiness, asked whether cal legs of support,” he said. “You can’t “DoD has taken some key first steps ODIN was simply a rebranding of the have it both ways.” in replacing ALIS, which is encourag- troubled ALIS system. Although the transition has been ing, but that effort still lacks a complete “Have we simply changed the name delayed, there’s still a need for speed, strategy and … it will be several years and maintained the same problem?” he and the JPO and other stakeholders before ODIN fully replaces ALIS,” Mau- said during a hearing. “The information shouldn’t be risk averse in moving to rer said. we’ve received is that this transition is a ODIN, he said. In its fiscal year 2020 annual report, neat name change, but that it’s not actu- “There’s more risk in not moderniz- the Pentagon’s office of the director of ally working.” ing it or slow rolling than just getting it

Lockheed Martin photo Martin Lockheed operational test and evaluation raised Fick pushed back on that notion. done,” Birkey said. “I would be looking to concerns about what it called “limited “Our intent with ODIN is not to just advance it as fast as possible in as realis- developmental testing” for software and rebrand ALIS,” he said. “ODIN is all tic a fashion as possible. … None of this hardware, warning that this “may leave about a new hardware baseline, a new is rocket science. I mean, these are all system and design flaws undiscovered integrated data environment and new solvable problems.” ND

J U N E 2 0 2 1 • NATIONAL DEFENSE 35 you have to spread it across all of your The Pitfalls of Factoring in business.” She continued that Levels 4 and 5, which are more complex and expensive Security and CMMC Costs to implement, may likely be a direct charge to the contract. As it stands, con- COMMENTARY BY MICHAEL methods for accumulating and allocating tractors will be forced to make decisions TOMASELLI AND CHARLES BATTAD costs under cost-reimbursable contracts. that could impact their profitability and n The need to elevate security as a Given current circumstances, contractors competitiveness when submitting bids primary metric in Defense Department should be aware of and consider existing for defense contracts. acquisitions — along with cost, sched- regulations, including the Cost Account- Costs related to information technol- ule and performance — will invariably ing Standards and the Federal Acquisi- ogy and cybersecurity are fundamental require that the government’s perspec- tion Regulation Cost Principles, as well to business operations. Though account- tives on procurement costs be recali- as legal precedent that may guide them ing treatment may differ depending brated. in the absence of further guidance from on organizational structure, contrac- It is a certain truth that enhancing the government. tors must adhere to generally accepted security for contractor networks and To conform with contract require- accounting principles as well as the FAR systems and incorporating security ments, vendors are incurring additional and Cost Accounting Standards where into development and operations, will costs to enhance cybersecurity capa- applicable. Many contractors chose to increase costs for contractors performing bilities and architect secure enclaves, utilize an IT service center to centrally on defense contracts. whether on premise or in the cloud. collect most service costs, including The requirements, including Defense While certain costs will be non-recur- cybersecurity. Likewise, contractors may Federal Acquisition Regulation Supple- ring, such as hardware upgrades and use a home office residual pool to allo- ment clauses 252.204-7012 and related engineering, other costs will be cate the costs across the business. Other 252.204-7021, have already resulted incurred on an ongoing basis. contractors will allocate IT and cyberse- in increased costs for contractors. The The costs of procuring equipment, curity costs to a specific segment. Lastly, former requires the safeguarding of Cov- maintaining security assessment and while not common, it is also possible ered Defense Information through the continuous monitoring programs, salaries that costs can be charged directly to a application of the security requirements of security personnel, fees of managed contract as an “other direct cost” if the set forth in Special Publication 800-171 security service providers, and renew- costs were incurred for the benefit of a of the National Institute of Standards als of security software licenses and specific contract. and Technology, while the latter sets subscriptions, should generally be con- Cost Accounting Standards 403 pro- forth the Defense Department’s Cyber- sidered as allowable for reimbursement vides the criteria for allocating home security Maturity Model Certification under FAR Part 31 and the associated office expenses to the segments of an (CMMC) requirements. cost principles. However, much less clear organization on the basis of the benefi- Costs to address the requirements is how contractors should allocate these cial or causal relationship between the are expected to grow as cybersecurity costs to their contracts for recovery. supporting and receiving activities. Per threats increase and organizations are What criteria should a contractor the guidance, expenses shall be grouped forced to continually evaluate and consider when determining if costs into logical and homogeneous expense remediate identified vulnerabilities, as are directly benefiting a contract, and pools and allocated as an indirect cost well as demonstrate compliance with therefore should be directly charged to across all segments based on the service evolving standards. a specific contract? And if costs benefit furnished to or received by each seg- Katie Arrington, chief information multiple contracts, including commercial ment. This prevents double counting of security officer in the office of the work, how should they be allocated to IT/cybersecurity expenses. undersecretary of defense for acquisition the final cost objectives in accordance In cases where IT/cybersecurity costs and sustainment and the driving force with Cost Accounting Standards? are centralized and not performed by behind the CMMC program, has pub- Answers to these questions ultimately the segments, CAS 403 further states licly stated that “security is an allowable affect whether the costs will be consid- that centralized service functions shall cost.” But such assurance does little to ered allowable by contracting officers. be allocated on the basis of the service assist contractors in understanding how As previously stated, the guidance furnished to or received by each seg- the department expects the costs to be behind the allowability of CMMC pro- ment. This is frequently done through accounted for. gram costs has been general and limited. an IT service center or home office pool To date, specific guidance related to Regarding cost allocation, in an inter- where costs are allocated based on a the requirements has not been issued view with Federal Computer Week, Stacy customized algorithm. by the Defense Contract Audit Agency, Bostjanick, CMMC director of policy Though removed from recent ver- though it can be expected that they in the office of the undersecretary of sions, the DCAA Contract Audit Man- will scrutinize any cyber-related cost defense for acquisition and sustainment, ual Section 7-000 previously included increases being passed onto the gov- stated: “Up to [CMMC] Level 3 will be guidance related to “computer cost ernment. Prior experience has made included in your indirect rates. So, you allocation,” which provides a concep- contractors all too aware of the risks of don’t get a direct charge to do it, but tual basis for IT and cybersecurity cost making assumptions on the appropriate you do get to recoup the cost over time; treatment when an algorithmic model

36 NATIONAL DEFENSE • JUNE 2021 CMMC Special Report

tracts, and cost reasonableness. Given the variety of companies that make up the defense industrial base and the unique circumstances of each as they look to comply with the new Figure 1 provides a summary of the total estimated annual costs for an individual small entity to requirements, auditors may develop obtain each CMMC certification level. Nonrecurring engineering costs are spread over a 20-year period creative methods to evaluate the allow- to determine the average annual cost per entity. Assessment costs have been spread over a three-year period, since entities will participate in a reassessment every three years. Source: Chess Consulting LLC ability of cybersecurity costs charged to contracts, a prospect that is never com- forting to contractors. is used. indirect and the policies must conform There are many challenges to the Modern cybersecurity costs could be to the requirements laid out further in implementation of a compliant cyber- viewed in a similar manner, and any CAS 418. security program beyond the collection algorithm used to allocate costs could A related cause for concern among and allocation of costs. Contractors will be based on IT and cybersecurity alloca- contractors is that it is not clear that the have to make decisions regarding devel- tion bases including, but not limited to, Defense Department understands the oping their internal cybersecurity func- the number of end points monitored, true costs associated with its cyberse- tions with dedicated staff or outsourcing number of software licenses, amount curity requirements. While the Interim aspects of the program to third-party and source of network traffic, number Rule DFARS case 2019-D041 attempt- providers, utilizing a managed service of incident response tickets, etc. The ed to quantify costs associated with a model or a move to the cloud. greater the variation in types of applica- small company receiving a CMMC cer- In addition, contractors will have to tion or services provided, the greater the tification, it posited that contractors are decide the level of security they wish need for a more complex algorithm. already performing and accounting for to adopt, such as CMMC Levels 1, 2, 3, If the IT and cybersecurity costs can the 110 controls under NIST SP 800- etc. The level of security will impact the be allocated to the segment level, CAS 171 and excluded costs associated with costs incurred and the contracts that will 410 and CAS 418 provide further guid- those controls from their calculations. bear those costs. To date, many contrac- ance. CAS 410 provides the criteria for (See figure 1) tors have rightly been focusing on how the allocation of business unit general Preliminary estimates from some the cybersecurity requirements impact and administrative expenses to business larger contractors have placed the costs their business from an IT and informa- unit final cost objectives. CAS 410-40(a) of complying with the requirements in tion governance standpoint; but in paral- requires that such expenses of a business the millions. Associated with concerns lel, companies should ensure that their unit be grouped in a separate indirect regarding the accuracy of the depart- finance, accounting and estimating func- expense pool and allocated only to final ment’s assumptions, contractors are tions are appropriately considering how cost objectives. faced with questions that are funda- the costs of compliance are accounted The allocation base for general and mental to their ability to appropriately for and billed to the government for administrative expenses must include estimate costs for proposal. These ques- maximum recovery while avoiding the all significant elements of cost input tions include: How will cybersecurity risk of CAS noncompliance. that represent the total activity of the related costs be evaluated by DCAA As for the chosen cost accounting business unit. Per CAS 410-50(d), the for allowability and reasonableness? Are practice to collect and allocate cost allocation base must be either total cost CMMC assessment preparation costs, to contracts, be prepared to provide input, value-added cost input, or single which are separate from certification justification for the basis of alloca- element cost input. The determination costs, allowable and how should they tion in accordance with CAS that will of which allocation base best represents be recovered if the bid is rejected? How stand up to scrutiny from auditors and total activity of a business unit is deter- should a contractor address concern that regulators. From a compliance and risk mined on the basis of the circumstances CMMC implementation will affect the management perspective, contractors of the segment or contracts. company’s cost competitiveness when should ensure that considerations are Lastly, CAS 418 provides the criteria proposing for fixed-price contracts? incorporated into their existing internal for consistent determination of direct Based on the guidance provided by financial control framework. This will and indirect costs as well as the criteria generally accepted accounting practices require detailed policies and procedures for the accumulation of indirect costs, and CAS, contractors may choose to treat that describe your cost treatment and including service center and overhead CMMC related costs in a manner consis- accounting practices, compliant systems costs, in indirect cost pools. It also tent with their current practices. The pre- to capture and report costs accurately, includes guidance relating to the selec- dicament, however, is that not only will and a comprehensive Disclosure State- tion of allocation measures based on the this raise their indirect rates, but audi- ment for CAS-covered contracts. ND beneficial or causal relationship between tors are likely to closely examine costs an indirect cost pool and cost objectives. incurred to conform with requirements Michael Tomaselli (mtomaselli@chessconsult- Notably, a business unit must have writ- based on their benefit to the business as ingllc.com) is senior manager and Charles Bat- ten policies classifying costs as direct or a whole versus specific government con- tad a senior associate at Chess Consulting LLC.

JUNE 2021 • NATIONAL DEFENSE 37 CMMC Special Report timely clarification prior to responding to the solicitation. There appears to be less certainty among contractors regarding the handling of CMMC certification requirements for subcontractors. Only 31 percent believed Addressing Solicitation, that this information is due at proposal submission, and 29 percent believed that it is due at contract award. Contract Performance The panel discussion again emphasized that the solicitation would dictate, but generally agreed that it is better to know VIEWPOINT BY SUSAN WARSHAW EBNER the status and level of compliance of a potential subcontractor. AND ROLANDO SANCHEZ This discussion confirmed that vetting a supply chain — ensur- n Many of the questions surrounding the Defense Depart- ing companies are using subcontractors and suppliers that meet ment’s Cybersecurity Maturity Model Certification program needs and satisfy solicitation requirements — will help avoid have centered around how it will be rolled out and how con- problems of bid rejection or potential performance noncompli- tractors will be certified. ance in the future. Similarly, questions surround the implementation of the When the fictional company progressed from bid to award, Defense Federal Acquisition Regulation Supplemental Interim the panel tackled the question of how frequently contractors Rule on cybersecurity. That rule implements three clauses, need to conduct cybersecurity self-assessments during con- DFARS 252.204-7019, 7020 and 7021, and centers on achiev- tract performance. A plurality of the audience — 36 percent ing compliance with required controlled unclassified infor- — believed that self-assessments should be conducted per the mation (CUI) security controls and protections for covered company’s risk assessments and best practices. Other audience contractor systems pursuant to DFARS 252.204-7012 and members believed that self-assessments should be ongoing (30 NIST SP 800-171, as well as the implementation of CMMC percent) or conducted once a year (23 percent). and compliance with its additional requirements. The expert panel agreed that in order for contractors to In the near term, contractors are scrambling to gain answers maintain their cybersecurity, they need to address new and to what they need to do to comply and be certified at the emerging threats. Accordingly, the better practice would be for proper level to remain competitive and more secure against contractors to conduct ongoing self-assessments. adversaries. However, a practical question remains: what hap- While there are cost and manpower considerations which pens after compliance is achieved and a contract is awarded? may make constant surveillance impractical for some contrac- The above question was the theme of a recent tabletop tors, vigilance and remediation of identified risks is important exercise webinar hosted by the Cyber Legal Policy Committee for contractors at all levels. of the National Defense Industrial Association’s Cybersecurity Best practices in this area are evolving. For example, the con- Division. Key stakeholders from government and industry gath- cept of “zero trust” — not to trust anything inside or outside ered to freely discuss how contractors should plan for the new your networks and systems — is more accepted today than in normal, where the contractors’ present compliance with cyber- the past. In this regard, there is movement to find out more security security controls must be considered in making awards about the who/what/where of the systems, applications and and continuing performance of defense contracts. The audience software used by contractors. Vetting the cyber supply chain is was also polled to gauge these government contractors’ level of part of a sound cyber hygiene plan. knowledge and planning under different scenarios. The tabletop amplified the need to discuss what happens The tabletop followed a fictional company, which had con- next once a basic assessment has been performed and filed in ducted a basic assessment under the DFARS Interim Rule and the supplier performance risk system, and CMMC certification gone through CMMC program certification. The company bid is pursued. on its first contract, and for performance intended to use sub- The basic assessment and Cybersecurity Maturity Model contractors. Certification are not going to be the end of the road for gov- The first polling question concerned whether and when ernment contractors and their supply chains. Rather, they are subcontractors’ basic assessment scores were to be submitted a marker on the road ahead for contractors to implement and under the DFARS Interim Rule. Some 41 percent of audience maintain adequate cybersecurity. members agreed that basic assessment information is due when The NDIA Law and Policy Committee’s next planned table- the proposal is initially submitted. top webinar will address the issue of cyber incident response. The ensuing panel discussion indicated general agreement How do you know when you have a cyber incident to report with this position, but emphasized that the contractor needs and what do you do? ND to determine whether the subcontractor will receive CUI and the level when flowing down the clause and determining sub- Susan Warshaw Ebner is a partner at Stinson LLP and chairs its contractor requirements. All agreed that the actual answer is Government Contracts and Investigations practice group. Rolando illustrationiStock dependent on the solicitation and its instructions. If the solici- Sanchez is the owner and principal of the Law Office of Rolando R. tation is ambiguous as to whether there is CUI or what the Sanchez PLLC. Together, they co-chair the NDIA Cyber Legal Policy requirements are, then potential bidders or offerors should seek Committee.

38 NATIONAL DEFENSE • JUNE 2021 CMMC: More Frequently Asked Questions

The National Defense Indus- Canadians are not allowed to proceed language between now and full imple- trial Association has held a past provisional assessor certification. mentation in fiscal year 2026 as “pilots.” series of webinars for members If U.S. citizens are not allowed into This is not to be confused with the seeking information about the Defense Canada to perform assessments, this “pathfinders” that were internal to exer- Department’s Cybersecurity Maturity will grind production to a halt. cises conducted over the past year as Model Certification program. NDIA tabletop exercises to help with internal Senior Vice Principal of Strategy and It is our understanding that the implementation of the CMMC program. Policy Wes Hallman, Principal Director CMMC Accreditation Body is currently of Strategy Corbin Evans and Direc- requiring provisional assessors to be U.S. Seventeen domains, three maturity tor of Regulatory Policy Nick Jones citizens due to the requirements in their level processes — not controls — per answered questions for participants after agreement with the Defense Depart- domain, so there are 51 additional pro- an April 15 talk. ment. The department and the CMMC- cesses above the 130 CMMC practices? The questions and answers from that AB are working to reach agreements session have been edited for clarity and with foreign organizations to allow Yes, this is the additional set of length. international inspections to take place. requirements between National Institute At this time, it is unclear exactly how of Standards and Technology Special Will CMMC be required in the Small this will work and will likely not happen Publication 800-171 and the CMMC Business Innovation Research/Small for some time, as they still continue to Level 3. Business Technology Transfer pro- work to get assessors in place here in the grams? United States. Do you have any idea of equivalence with other national or international All Defense Department contracts equivalent standards? will have CMMC as a requirement by the start of fiscal year 2026. At this Not at this time. The U.S. Defense time, we don’t know if any SBIR/STTR Department has started conversations program contracts will include CMMC with foreign governments and organiza- language prior to 2026 but it is likely tions but at this time there is no released that at least some of those contracts will plan for reciprocity between CMMC be part of the pilot program. and any other international standard.

The Defense Department in March I note a lot of commentary on the cost announced an internal review of the of the program, but nothing about the program. Is there any hope that the benefits. Other than being shut out of review might reduce the complexity Defense Department business, is there and cost for the CMMC certifications? any evidence that CMMC brings ben- This absolutely seems like overkill and efits above other requirements already contrived simply for maximum revenue in place? generation for what is supposed to be a We have received an offer from the Mis- non-profit organization. sile Defense Agency cyber assistance On its face CMMC will be raising the team for a free assessment. Is this a baseline of security across the defense We are hopeful that the internal good thing to do? industrial base by adding additional review team is taking the comments and requirements for those with the current suggestions we have made about how to Likely yes! MDA has reached out to DFARS 252.204.7012 requirement in improve the CMMC program seriously. organizations to do an informal assess- their contracts that will seek to be com- We have been advocating for changes ment of their security systems. It likely pliant with CMMC Level 3. to the program since its inception and it would not hurt to have an additional set While the actual level of increased is becoming more and more clear that of eyes looking at cyber practices, pro- security achieved by imposing these CMMC is going to be difficult to imple- vided that MDA commits to not share additional requirements is debated, ment from a technical and cost stand- scores or assessments with others in gov- there is also some benefit to the inspec- point if no changes are made. We are ernment or industry. tion and verification regime included engaging the review team and hope to in CMMC. This will likely increase the have an update for our members soon. How can there be full implementation level of compliance because without in September 2025 if all contracts are a a CMMC certification companies will illustrationiStock Why can’t foreign nationals sign up for pilot until then? eventually be unable to continue to do CMMC Level 1 or 3 assessor accredi- business with the department, thus also tation? Canada provides 5 percent The Defense Department is referring increasing the baseline of security for of all U.S. defense components but to all contracts that contain the CMMC the average defense contractor. ND

JUNE 2021 • NATIONAL DEFENSE 39 Policy Points BY SEBASTIAN VISCUSO

Unmanned Systems and the Future of War n In 2005, Vice Adm. Lowell E. Jacoby, then director of the and autonomous systems … we’re going to have to take a dif- Defense Intelligence Agency, noted in his testimony before ferent approach with development. the House Armed Services Committee that “lethal unmanned “We’re probably going to have to use the software acquisi- aerodynamic vehicles are expected to pose an increased threat tion pathways that Congress has given us to enable us to rap- to deployed U.S. and allied forces in various regions.” idly evolve capability, as opposed to the formal process where Jacoby predicted that not only would autonomous systems we would have a set of requirements that we’ve figured out proliferate among U.S. allies, but also amongst potential com- already, hand it off to an original equipment manufacturer, petitors and pose a threat to friendly forces in the battlespace. then come back seven years later for [low-rate initial produc- His words were prophetic. tion],” he added. Largely through its vast oil resources and geopolitical posi- Leveraging new software acquisition pathways is critical to tioning, Azerbaijan integrated advanced unmanned aerial developing artificial intelligence because autonomous systems systems into its operations against Armenia during the Second rely on improvements to software rather than hardware to Nagorno Karabakh War, which took place Sept. 27 to Nov. 10 become more effective. For Sadowski, autonomous systems last year. Retired Marine Corps Maj. Brandon Tattersall, senior and robots are “moving information systems on wheels or analyst at Insitu, noted “Azerbaijan has been able to invest in wings,” meaning that “the process of updating [software] needs [UAS], precision guided munitions, loitering munitions” and to be much faster … from an industry perspective. That might various other systems due to its oil revenues and its special be a little bit different where the software is more important relationship with Turkey. than the platform itself.” “Because of close cultural and ethnic ties and historic hostil- Staying at the leading edge of the curve on autonomous sys- ity to Armenia, Turkey has been very willing to provide sup- tems requires speedy, dynamic acquisition pathways to create port,” he said in an interview. the perfect conditions for innovation. The Turks trained the Azerbaijani people, and also provided Though these changes may symbolize a proverbial “new them with the techniques, tactics and frontier” in terms of military acquisi- procedures to effectively leverage tions, autonomous systems have the UAS and integrate them into a com- potential in certain roles to prove bined arms approach, he said. much more effective than manned Even without U.S. support, Azer- systems. baijan, a middle-ranking power, has For instance, Paul Decker, deputy been able to integrate these advanced to the chief roboticist at the Ground unmanned aerial systems technolo- Vehicle Systems Center, noted that gies into its force structures and press unmanned ground systems such as territorial claims. the Army’s Robotic Combat Vehicle U.S. military planners have noted have maneuver capabilities that are these changes to the global bat- unavailable for comparable manned tlespace and the availability of systems. drones. According to Tattersall, “the U.S. military is adapting its “There’s only so much energy and shock a body can take if doctrine to the evolving nature of the battlefield. For example, you’re driving high speed,” said Decker. “If you don’t have to the Marine Corps is including an assistant squad leader tech- worry about having a human in [the vehicle], the 6 watts of nology operator in the squad,” who might be responsible for power that goes into the occupant is removed. Then you can overseeing UAS and counter-UAS systems. potentially go pretty fast off-road.” With these coming changes in technical requirements, Tat- While Sadowski reminds us that many emerging capabilities tersall asserted that industry is ready to support them. of autonomous systems still require more development before “The defense industry is out there to serve the troops,” he the U.S. military can begin leveraging these advantages, this said. “If there’s something that the troops need — like a small example shows how next-generation systems have the poten- counter-UAS system — I believe that industry will be there to tial to add to warfighting capability. fill that need.” As U.S. adversaries integrate autonomous systems into their Beyond doctrine, the Defense Department is pursuing armed forces at an alarming rate, a strong bond between pri- research and development programs to keep the United States vate industry and government will support continued U.S. at the forefront of autonomy and artificial intelligence. dominance and force posture. As the need for new capabilities Dr. Robert Sadowski, who serves as the Army’s senior continues to grow, industry and government will continue their scientist for robotics within the Research, Technology and cooperative work, safeguarding the nation and leveraging U.S.

Integration Directorate at the Army Combat Capabilities innovation in support of the warfighter. ND photoArmy Development Command’s Ground Vehicle Systems Center in Warren, Michigan, said in an interview that “with these robots Sebastian Viscuso is an NDIA junior fellow.

40 NATIONAL DEFENSE • JUNE 2021 Ethics Corner BY GENE MORAN

‘For the People Act’ Worth Watching

n House Resolution 1 (H.R.1), colloquially known as the “For work with executive branch colleagues typically share that the People Act,” passed through the House with no Republi- they are working with a company. However, as written, this can votes, 220-210, in March, and moved to the Senate, where language would require disclosure. its companion is S.R.1. It may be surprising how many people in an organiza- The legislation revisits various nagging issues with a history tion this affects. “Business developers” and “door openers” fit of confounding regulation and policy efforts, including voting squarely in the sights of this language. Shadow lobbying — a rights and access, campaign finance, lobbying, financial disclo- term used to describe those who effectively lobby but don’t sure requirements, and various ethics rules applicable to all correctly report the activity — is a well-documented condition three government branches. rampant in the defense industry. This language will continue to As with most prior efforts to curb unwanted behaviors by tighten over time. elected and unelected government practitioners, the bill sets a It might be a valuable exercise to test internal tracking of tone for this congressional session, capitalizes on topical issues “lobbying activities.” Some companies implement proven sys- of the day, and passes the House without bipartisan support. tems for tracking employee hours and categorizing those hours The bill’s fate in the Senate is uncertain. Its sweeping nature to the correct accounts. The law does not specify how to track makes it ripe to be scaled back if it is to see the final passage. these activities, just that there be a system in place. Executives However, there are some specifics that should be noted as should ask if their tracking is effective. they offer helpful insight into the direction of future policies Lobbying is an “unallowable” expense, meaning it cannot and concerns that generate political heat. As elections near, be rolled into overhead costs and charged back to the govern- political heat often moves the policy needle. ment. Unallowable expenses are not part of the cost of goods First, the bill broadens the definition of “lobbying activities” and services. In short, they come directly out of profit. A sys- in federal law to include “counseling in support of such prepa- tem of internal reporting is only as good as the submissions ration and planning activities, research, and other background made by the employees. If employees, executives and consul- work.” If enacted, this would cause lobbying registration and tants operating in a company’s name don’t capture their hours restrictions to attach to such counseling. Such advisory coun- correctly from the start, internals reports are worthless. seling takes place with retired It is all too clear in high vis- senior officers and former mem- ibility criminal cases how easy it is bers of Congress interacting with to document someone’s activities decision-makers. through electronic audits. Phone Second, current law defines, records, texts, emails, electronic in part, “lobbying activities” as tolling and routine surveillance “lobbying contacts and efforts in footage can readily piece together support of such contacts.” A revi- where anybody has been at a given sion in H.R.1 would expand this place and time and with whom phrase to be “lobbying contacts one has communicated. Describ- and any efforts in support of such ing this reality is not to scare with contacts.” the threat of Big Brother. It should Consequently, the universe of suggest one fully consider the “efforts” that require registration integrity of their reporting. and adherence to lobbying laws would also expand. Because What’s the cost of being on the wrong side of interpreting the word “any” is so broad, it is not likely to survive the final what conduct complies with the shifting landscape of lobby- passage; however, it gives one a sense of the opening argument ing and disclosure laws? Although rarely implemented, there in the negotiation. can be fines of $200,000 per instance of non-compliance. But Third, the definition of “lobbying contact” would be fur- don’t let that be the only measure of analysis. The worse dam- ther expanded by including a new provision that makes some age will come with the public revelation that a company did “counseling services” a “lobbying contact” that triggers the need not comply. The reputational damage, and the certain subse- for registration. This provision would seem to get at some quent requirement to report the past infraction in perpetuity, former members and officials who direct or play a significant carries risk beyond calculation. role in lobbying operations without actually making contact or It’s unlikely that lobbying and disclosure laws will loosen registering. Notice a theme emerging? up. Whether H.R.1 and S.R.1 ultimately conference to a final Fourth, lobbyists would need to disclose to all covered leg- bill, the language of the “For the People Act” is a weather vane islative and executive branch officials whether he or she is a worth watching. ND photoiStock registered lobbyist, the client on behalf of whom he or she is making contact, and if the client is a foreign entity. As a practi- Gene Moran is president of Capitol Integration and author of the book tioner, my observation is that those doing senior-level discovery Pitching the Big Top: How to Master the 3-Ring Circus of Federal Sales.

JUNE 2021 • NATIONAL DEFENSE 41 Government Contracting Insights BY ANDREW GUY, NOOREE LEE AND ANNA MENZEL

Prepare Now for the $15 Minimum Wage

n In April, President Joe Biden signed an “Executive Order on all contractors. Increasing the Minimum Wage for Federal Contractors” that The directive applies to new federal contracts and “contract- will raise the hourly minimum wage for federal contractors like instruments.” The latter term is not defined by the execu- to $15, effective Jan. 30, 2022. The order builds on Executive tive order, but the Department of Labor previously defined Order 13658, “Establishing a Minimum Wage for Contractors,” this phrase broadly to include any “obligations that are enforce- issued by former President Barack Obama in 2014, which first able or otherwise recognizable at law,” including “procurement implemented an hourly minimum wage of $10.10 for covered actions, lease agreements, cooperative agreements, provider federal contractors. agreements, intergovernmental service agreements, service Given the Obama-era minimum wage requirement, many agreements, licenses, permits, or any other type of agreement, experienced defense companies may already have the infra- regardless of nomenclature, type, or particular form, and structure in place to implement this new requirement. Other whether entered into verbally or in writing.” Defense compa- defense companies who do not already meet this require- nies may expect a similarly broad interpretation here. ment and have employees covered by applicable federal labor There are limitations on what “contracts or contract-like laws should begin preparing now given the broad anticipated instruments” the new executive order covers. The directive impact. only covers contracts for: services or construction; services According to the Economic Policy Institute, the new execu- covered by the Service Contract Act; concessions; or services tive order will raise wages for up to 390,000 people who work for federal employees, their dependents, or the general public for federal contractors. in connection with federal property or lands. Perhaps the most The order comes against the backdrop of a series of actions significant limitation is that the order only applies where the by the Biden administration focusing on minimum wage more contract is governed by one of three federal labor laws: the Fair generally. On his third day in office, Biden directed the Office Labor Standards Act, the Service Contract Act, or the Davis- of Personnel Management to provide a Bacon Act. report with recommendations to implement Federal agencies will need to incorporate a $15 hourly minimum wage for all federal the $15 minimum wage requirement into all employees. The administration also proposed new solicitations, contracts, contract exten- raising the minimum wage for all workers to sions, contract renewals and contract-like $15 per hour as part of the recent American instruments starting Jan. 30, 2022. Agencies Rescue Plan Act of 2021. However, the Sen- are “strongly encouraged” to begin imple- ate eliminated this aspect of the plan from menting the requirement before these dates, the legislation after concluding it was unable although given the scheduled timing for issu- to be passed through the reconciliation pro- ance of regulations, broad early implementa- cess. tion seems unlikely. The labor secretary has The new executive order is the next con- been directed to issue regulations implement- crete step by the Biden administration to ing the executive order by Nov. 24, with a implement a $15 per hour minimum wage. Federal Acquisition Regulation amendment It is intended to “promote economy and to follow within 60 days. Contractors may efficiency in procurement by contracting with sources that expect the requirement to hit as set in the executive order, in adequately compensate their workers.” January 2022. The administration is expecting that the increase to the In addition to preparing for internal wage adjustments, federal minimum wage will enhance worker productivity, another area that contractors may want to start preparing for reduce turnover and absenteeism, and reduce supervisory costs early is in their diligence of subcontractors. Contractors will be — allowing work for the federal government to be completed required to incorporate the higher minimum wage into lower- more quickly and efficiently. tier subcontracts, so this requirement will need to be factored As with the Obama-era rule, the hourly minimum wage will into subcontractor selection processes, particularly where the then be adjusted for inflation annually, based on the Consumer process includes an evaluation of subcontractor pricing for Price Index for Urban Wage Earners and Clerical Workers. work to be performed in future years. In addition to raising the hourly minimum wage for federal Overall, this executive order likely will be less disruptive contractors, the new executive order phases out the minimum from an implementation perspective than the Obama-era rule wage for tipped federal contract employees. Tipped workers’ that first introduced the federal contractor minimum wage, hourly wages must be at least $10.50 as of Jan. 30, 2022 and but it remains a critical area of compliance meriting the close at least 85 percent of the standard hourly minimum wage in attention of defense contractors with covered contracts. ND

effect as of Jan. 1, 2023. The tipped minimum wage for federal photoiStock contractor employees will be fully phased out by Jan. 1, 2024 Anna Menzel and Andrew Guy are associates and Nooree Lee is a spe- and replaced with the standard minimum wage applicable to cial counsel in the Washington, D.C. office of Covington & Burling LLP.

42 NATIONAL DEFENSE • JUNE 2021 News

Rocky Mountain Chapter Supports STEM Space Effort

n The National Defense Industrial Association’s Rocky Moun- launch by the program that has supported students and educa- tain Chapter recently sponsored an event with Edge of Space tors since 2016. Missions to successfully launch its largest payload to date. “NDIA RMC is proud to continue to sponsor this great The event featured 240 student experiments that were set event,” said Philip Kwong, president of the chapter. “People ask: aloft during the demonstration. ‘How do we get young people interested in STEM, in space?’ Using a 3,000-gram weather balloon filled with hydrogen, and this is how you do it. By making STEM exciting, making the Edge of Space team launched the payloads shortly after these impressions deeply and early in our young people’s lives, sunrise from Deer Trail, Colorado. They reached an altitude of we plant the seeds for the future.” 104,803 feet before the balloon burst and a parachute recovery The launch — which was scheduled shortly after sun- system safely delivered the experiments back to Earth. rise — took place during a cold and windy day. Once on site, “The balloon with its payloads reached maximum altitude participants were able to learn about launch and all its associ- in rapid fashion compared to past flights,” said Norman Black, ated sequences including fueling, range safety, countdowns and Edge of Space payload integrator. “The chase team was able launch. to reach the projected landing site just a few miles north of Seeing the balloon — which the children nicknamed “Marsh- Wiladel, Colorado, to witness the safe landing of the payloads mallow” — launch and gradually become smaller and smaller under a brightly colored parachute some 65 miles from the as it climbed toward space was an experience many will never launch site.” forget. Edge of Space will return the contents of the payloads back “This is how we build for the future and we are grateful for to the students, ranging from pre-K to 12th graders, to continue the Edge of Space Mission volunteers for their great work and with their experiments. especially the 240 young scientists that participated,” Kwong Staffed entirely by volunteers, this was the 11th successful said. ND

Georgia Chapters Sponsor Space Week Event

n The Museum of Aviation Foundation’s tional opportunities to both students and National STEM Academy announced teachers,” said Melissa Spalding, direc- that the Georgia and Central Geor- tor of education at the museum. “It is gia Chapters of the National Defense important that our community contin- Industrial Association, the Space Grant ues to work together to make learning Left to right, PJ Vasquez, president of NDIA’s Central Consortium and the Robins Spouses fun and impactful to support our future Georgia Chapter; Darlene McLendon, president and CEO of the Museum of Aviation Foundation; Melissa Club are sponsoring Space Week at the workforce.” Spalding, director of education at the Museum of Museum of Aviation in Warner Robins, The Museum of Aviation is a place Aviation Foundation; and Daniel Rhoades, president of Georgia. that honors veterans and their families the NDIA Georgia Chapter. “With partners like NDIA, the and reminds airmen of their Air Force of the heritage of the Air Force, educate National STEM Academy makes great heritage. Its mission is to portray the and inspire visitors and recruit the future strides in providing STEM-based educa- history of Robins Air Force Base as part workforce. ND

NDIA-RMCNDIA-GAphotos,NDIA-Centralphoto, photo iStockphoto, Georgia ETI’s Lewis Debuts Podcast Lewis Attend Golf Invitational n Dr. Mark Lewis, executive director of the National n Join the National Defense Industrial Association’s Defense Industrial Association’s newly founded Washington, DC Chapter as it raises money for the Emerging Technologies Institute, debuted a new USO-Metro during its annual Swing for Freedom podcast this spring. Golf Invitational Oct. 29 at Stonewall Golf Club in The bi-monthly podcast — titled “Emerging Tech Horizons, a National Gainesville, Virginia. Security Podcast with Dr. Mark Lewis” — recently featured a discussion Register a foursome, single and/or be a sponsor. on artificial intelligence and the future of defense modernization. Last year’s fundraiser collected $35,000 for the USO- In his inaugural episode, Lewis spoke with Jason Matheny, deputy Metro to help support critical programs and services assistant to the president for technology and national security, deputy for 500-plus active-duty troops and director for national security in the Office of Science and Technology their families. Policy, and coordinator for technology and national security at the Na- More information can be found at tional Security Council. https://bit.ly/3xxnjGn or contact Cher- The podcast can be found at https://bit.ly/3vsaDi8. ND yl Luczko at [email protected]. ND

JUNE 2021 • NATIONAL DEFENSE 43 JUNE 29 NTSA July Webinar CALENDAR Virtual 15 Tactical Wheeled TrainingSystems.org Vehicles Webinar We look forward to Virtual NDIA.org/TWVJune AUGUST bringing together leaders in government, industry, 16-17 Training & Simulation 11 Simulation & Training Industry Symposium (TSIS) 2021 Community Forum (STCF) 2021 and academia again to solve Orlando, FL Fairborn, OH the most challenging issues TrainingSystems.org/TSIS TrainingSystems.org/STCF21 in national security in person 30 NTSA June Webinar 16-18 2021 CBRN Defense soon with the health and Virtual Conference & Exhibition TrainingSystems.org Baltimore, MD safety of all of our registrants NDIA.org/CBRN21 in mind. NDIA is planning to meet face to face in the JULY 18-20 Space Warfighting Industry Forum upcoming months, and will 12-14 JADC2 & All Domain Colorado Springs, CO follow local, state and CDC Warfare Symposium NDIA.org/SWIF College Station, TX guidelines to keep everyone NDIA.org/JADC2 25 NTSA August Webinar safe. Virtual 13 Virtual July 2021 TrainingSystems.org Visit NDIA.org/events for Procurement Division Meeting more information. Virtual 30-Sept. 1 iFEST 2021 NDIA.org Virtual TrainingSystems.org/iFEST Christine M. Klein 15 2021 Joint NDIA/AIA Senior Vice President, Industrial Security Meetings, Divisions Summer Webinar Virtual & Partnerships NDIA.org/ISWebinar21

SPACE WARFIGHTING INDUSTRY FORUM Save the Date This second annual event offers a premier opportunity to explore matters of importance to the entire U.S. space industrial base, including elements of the government military space community. Joined by the NDIA Space Division and Rocky Mountain Chapter, attendees will hear from top USSPACECOM and USSF leadership in both unclassified and classified forums, as well as from entrepreneurs and thought leaders on a variety of engaging topics. Mark your calendars for this highly anticipated event, where industry, government, and academia will collaborate to push the tactical edge of the space domain beyond its limits.

August 18 – 20, 2021 | NDIA.org/SWIF

44 NATIONAL DEFENSE • JUNE 2021 JADC2 & ALL DOMAIN WARFARE SYMPOSIUM

Register Today This second annual event, co-hosted by NDIA and Texas A&M University, offers attendees a key opportunity to explore the complexities and importance of all domain warfare and its impact on the future force. With unclassified and classified days comprised of hybrid and in-person components, the symposium will uncover and maximize the role of cyber integration in electronic warfare, information operations, and JADC2. Together, attendees will develop the potential of these concepts in best equipping U.S. and coalition warfighters to execute faster than adversaries within the decision cycle. Attend this trailblazing event to join thought leaders from industry, government, and academia in leveraging emerging capabilities while mitigating present challenges.

July 12 – 14, 2021 | College Station, TX | NDIA.org/JADC2 EMERGING TECH HORIZONS A National Security Podcast with Dr. Mark Lewis This brand-new podcast invites you to listen in on conversations with Dr. Mark Lewis, the Executive Director of NDIA’s Emerging Technologies Institute, as he welcomes a diverse slate of national security leaders from government, industry, and academia to discuss the defense technologies of today and tomorrow. Each episode takes a deep dive as the experts share their personal views on future technology topics, providing listeners with unique perspectives on the latest in emerging technologies and how they relate to national security. Listen to Emerging Tech Horizons where you find all your favorite podcasts.

New Episodes Bimonthly | NDIAETI.org/Podcast

AN ONLINE COMMUNITY FOR DEFENSE PROFESSIONALS

NDIA Connect is a member-only benefit that’s bustling with information, conversation, and activity stimulated by defense professionals from industry, government, and academia. Log in today to explore the platform’s various functionalities and contribute to our collective mission in support of the warfighter. From anywhere and at any time, use NDIA Connect to network with colleagues, collaborate on projects, and stay connected.

Connect.NDIA.org

46 NATIONAL DEFENSE • J U N E 2 0 2 1 2021 CHEMICAL, BIOLOGICAL, RADIOLOGICAL, & NUCLEAR (CBRN) DEFENSE CONFERENCE & EXHIBITION

Responding Now – Preparing for Future CBRN Threats

Register Today The premier event enabling industry, government, and academia to exchange information related to defenses against weapons of mass destruction returns this year to address the theme of “Responding Now – Preparing for Future CBRN Threats.” Attendees can expect in-depth discussions and collaborations on evolving threats, requisite capabilities, acquisition reform, and the future of warfighter training and readiness. This conference programming will be accompanied by cutting-edge exhibits and poster sessions that promise additional information and opportunities geared towards ensuring the Joint Force can fight and win in a CBRN environment whether at home or abroad. Plan ahead to participate in this highly anticipated event.

August 16 – 18 | Baltimore, MD | NDIA.org/CBRN21 Next Month

China’s J-20 Jet Fighter Japan’s Defense Industry ■ Airpower is expected to play a critical role in a potential ■ Japan is one of America’s closest allies and trade partners war between the United States and China. How do their mili- and a member of the Quad — four nations aligned to thwart taries stack up when it comes to stealth fighter technology? China’s Pacific ambitions. What are the obstacles and opportunities for growth in the Japanese defense industrial base? China’s Space Capabilities ■ China is making progress with several space-related initia- Army Tactical Network tives that are becoming a growing concern for the national ■ The Army is gearing up for Project Convergence 2021. Dur- security of the United States. In our next issue, National ing the exercise, soldiers will test a number of new capabilities Defense examines Beijing’s civilian and military efforts in space. related to the service’s Integrated Tactical Network initiative. Chinese Amphibs Arctic Vehicles ■ As Chinese shipyards continue to churn out vessels to bol- ■ As the Army zeros in on Arctic warfare, the service is look- ster the nation’s rapidly growing navy, Beijing is also bulking ing for its next snow vehicle with its Cold Weather All Terrain up its fleet of amphibious ships. The vessels could be used to Vehicle program. Manufacturers will deliver prototypes to invade Taiwan or to protect islands the Chinese government compete for a contract to replace the aging Small Unit Sup- has controversially claimed as its own. port Vehicle.

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