Report Criticizes U.S. Defense Industrial Base; Cites Workforce Shrinkage, Intellectual Property Theft

Vigor Shipyard welder Robert Wood cuts and grinds metal during repairs aboard the submarine tender USS Frank Cable in 2017. A new NDIA report cites a shrunken workforce as well as intellectual property theft for the decline of the U.S. defense industrial base. U.S. Navy/Mass Communication Specialist 3rd Class Alana Langdon

ARLINGTON,
Va. — The health and readiness of the U.S. defense industrial base, plagued by
intellectual property theft and a shrunken workforce, rates a barely passing
grade on a report card issued on Feb. 5 by the sector’s largest industry group.

The report,
compiled by the National Defense Industry Association (NDIA) and data analytic firm
Govini, raises concerns about an industry challenged by cyber threats and industrial
espionage. Securing sensitive material against spies and data breaches earned a
failing grade, 63 out of 100, the lowest among eight areas analyzed by Govini
and NDIA.

In the
foreword to the report, “Vital Signs 2020: The Health and Readiness of the
Defense Industrial Base,” Govini CEO Tara Murphy Dougherty noted the new era of
‘great power competition’ is different from the Cold War. China is a rival
economic power, rapidly closing the technological gap, she wrote, adding, “China’s
efforts to exploit technological advancements made by others for its own
benefit threaten the security of the defense industrial base.”

“Just look
what they do with regard to cyber threats. The intellectual property that they
steal. Trillions of dollars a year are taken from our country with intellectual
property theft or data breaches,” Herbert “Hawk” Carlisle, a retired U.S. Air
Force general and NDIA’s president and CEO, told reporters in a teleconference for
the report’s rollout.  

“China’s efforts to exploit technological advancements made by others for its own benefit threaten the security of the defense industrial base.”

Govini CEO Tara Murphy Dougherty

Production inputs,
another area examined in the report, barely earned a C grade, with a 68, due in
part to a defense industry workforce that has contracted from its peak of 3.2
million in the 1980s to about 1.1 million today. The persistent security
clearance backlog was another contributing factor, especially with stagnating
approvals for top secret clearances, the data-driven report found.

The threat
to industrial security posed by state and nonstate actors is “very concerning”
in the near term, said Wesley Hallman, NDIA’s senior vice president of strategy
and policy. However, to achieve a capable workforce 20 to 40 years in the
future, investments have to be made now by government and society as a whole to
field a workers with “not only the skills, the talent and the educational
background to perform, but they’ve got to be able to pass a security clearance,”
Hallman warned.

NDIA and
Govini analyzed, over a three-year running average — 2017 through 2019 — 44
statistical indicators, such as surge capacity and threats to digital systems.
Each of the 44 indicators was graded from zero (bad) to 100 (excellent) and
slotted into eight sections, called dimensions, that were then graded individually.
The composite grades of the eight dimensions resulted in the defense industrial
base’s overall C grade of 77 for 2019. Factoring in 2017 and 2018 data, the
overall score is down 2% since 2017.

The other dimensions analyzed were: supply chain issues, which scored a 68; innovation, 74; productive capacity and surge readiness, 77; political and regulatory issues, 79; demand, 94; and competition, where conditions among the thousands of defense contractors scored a 96, the highest scoring dimension. That was largely because profitability is up 7% since 2017, enabling companies to expand business operations.

The 70-page report makes no specific recommendation, but NDIA leaders said their aim was to make the report an annual event that would generate a dialogue about national security among industry, the Defense Department, lawmakers, policymakers and the public. “The American people are a big part of this,” Carlisle said.




Navy Transfer of Space Operations to U.S. Space Force Still Up in the Air

ARLINGTON, Va. — The U.S. Navy’s shift of its assets in space to
the U.S. Space Force is still to be determined, a Navy spokesman said.

The U.S. Space Force was established on Dec. 20 as the Defense
Department’s fifth armed service and eventually will absorb the space
activities of the other services. The Navy and U.S. Marine Corps are users of
many space-based sensors and communications systems, but the Navy only owns and
controls the Narrowband communications satellites (Multiple User Objective System
and legacy satellites).

“Transfer of Navy Space Operations Mission to the Space Force is
still TBD and will depend on congressional
authorization,” said Joseph F. Gradisher, a spokesman for the Office of the
Deputy Chief of Naval Operations for Information Warfare.

“The Navy is supporting the
standup of the Office of the Chief of Space Operations with manpower designated
in the [fiscal year 2019 National Defense Authorization Act]. [The fiscal 2020] NDAA does not provide authority to
involuntarily transfer Army or Navy forces into the Space Force. The Navy has
acknowledged the [defense secretary’s] long-term vision to consolidate space
forces and is planning for a future conditions-based transfer of Space
operations mission.”

Gradisher said the secretary “laid out the vision to transfer Air Force
space missions and forces to the Space Force in FY 2021, and, if authorized, to
transfer appropriate Army, Navy and other [Defense Department] space-related
missions and forces to the Space Force beginning in [fiscal] 2022.”

“Ongoing analysis of the specific units, missions and billets from
across the Army, Navy and other DoD elements that should be formally
transferred into the Space Force, if authorized, continues,” he added.

The spokesman also said that “the Space Force will work diligently
to codify processes by which it will ensure the Army, Navy, Air Force and
Marine Corps space-related support requirements are fully satisfied and the
emerging needs of multidomain operations are met.”




Coast Guard, U.K. Royal Navy Ships Seize $46.2 Million in Cocaine in the Caribbean

Crew members of the Coast Guard Cutter Bear offload 3,086 pounds of cocaine on Feb. 4 in San Juan, Puerto Rico. The drugs were seized following two separate interdictions in the Caribbean by the Coast Guard and the U.K. Royal Navy on Jan. 24 and Jan. 30, which resulted in the detention of nine smugglers.

SAN JUAN, Puerto Rico — The U.S. Coast Guard, U.K. Royal Navy and U.S. law enforcement partners seized 3,086 pounds of cocaine and detained nine suspected drug smugglers following two separate interdictions in the Caribbean on Jan. 24 and Jan. 30, according to the Coast Guard 7th District. 

The seized drug shipments are estimated to have a wholesale value of more than $46.2 million. 

The interdiction was a result of an international, multiagency law-enforcement effort in support of Operation Unified Resolve, Operation Caribbean Guard, Campaign Martillo (a joint, interagency, 20-nation collaborative counter narcotic effort) and the Caribbean Corridor Strike Force (CCSF) and will be prosecuted by the U.S. Federal District Court for the District of Puerto Rico. 

“These efforts, underpinned by our unwavering resolve to stop drug smuggling vessels at sea, greatly contribute to safeguarding our citizens in Puerto Rico and the U.S. Virgin Islands and protecting our shared interests of a safer and more secure Caribbean,” said Rear Adm. Eric C. Jones, commander of the 7th District. 

“These interdictions highlight the importance of working with our international partners as we combat drug trafficking,” said W. Stephen Muldrow, U.S. attorney for the District of Puerto Rico. “These large drug seizures make our community safer by keeping the narcotics out of our neighborhoods. We commend all of our partner agencies for their steadfast efforts.” 

“These operations reiterate the significance of intelligence and resource sharing among agencies,” said A.J. Collazo, the U.S. Drug Enforcement Administration Caribbean Division special agent in charge. “We will continue to aggressively target and disrupt drug-trafficking organizations operating in the Caribbean.” 

In the first interdiction, the Royal Navy’s RFA Mounts Bay, while on patrol with a U.S. Coast Guard law enforcement detachment (LEDET) and a Coast Guard helicopter interdiction tactical squadron (HITRON) armed helicopter onboard, detected two suspicious go-fast vessels, about 74 nautical miles south of St. Croix, U.S. Virgin Islands. 

The RFA Mounts Bay launched the Coast Guard MH-65 helicopter and the ship’s pursuit vessel with the Coast Guard LEDET to interdict both suspect vessels.  

The Coast Guard LEDET boarding team, with the assistance of RFA Mounts Bay crew members, boarded both suspect vessels, apprehending the seven men and seizing 42 bales of suspected contraband. 

In the second interdiction, a maritime patrol aircraft detected a northbound target of interest, southeast of Isla Beata, Dominican Republic. The Coast Guard Cutter Bear along with a helicopter responded to interdict the go-fast vessel. The Bear’s over-the-horizon cutter boat and embarked helicopter arrived on scene and stopped the go-fast. The Bear’s boarding team detained the two men aboard the go-fast after discovering 13 bales of suspected contraband. 

The Bear delivered the seized contraband and detainees from both cases to U.S. Customs and Border Protection (CBP) officers, Immigrations and Customs Enforcement (ICE)-HSI, and DEA special agents in San Juan, Puerto Rico, on Feb. 4. 

Between October 2019 and December 2019, the Coast Guard and Caribbean Border Interagency Group authorities have seized 12,060 kilograms of cocaine and 407 pounds of marijuana during law-enforcement operations surrounding Puerto Rico and the U.S. Virgin Islands. The wholesale value for these seizures is more than $314 million. 

Cutter Bear is a 270-foot medium-endurance cutter homeported in Portsmouth, Virginia. The RFA Mounts Bay is a Bay-class auxiliary landing ship dock belonging to the Royal Fleet Auxiliary, which provides logistical support to the Royal Navy.




U.S. 2nd Fleet Flexes Expeditionary Command and Control

Vice Adm. Andrew “Woody” Lewis, commander of the 2nd Fleet, speaks Feb. 4 at Maritime Security Dialogue, sponsored by the Center for Strategic and International Studies and the U.S. Naval Institute. CSIS Via YouTube

WASHINGTON — The U.S. 2nd Fleet exercised its ability to operate expeditionary maritime operations centers in its run-up from initial to full operational capability, achieved in December, the fleet commander said. 

Vice Adm. Andrew “Woody” Lewis, commander of the 2nd Fleet, who spoke here Feb. 4 at Maritime Security Dialogue sponsored by the Center for Strategic and International Studies and the U.S. Naval Institute, said his staff deployed on board the USS Mount Whitney — traditionally the flagship of the U.S. 6th Fleet — to the Baltic Sea last year to command maritime forces in the BATLTOPS 19 exercise.  

Lewis gave a second example where a mobile operations center with 30 personnel was deployed to Keflavik, Iceland, last month, to control operations of P-8 maritime patrol aircraft. The deployment tested the scalability of the fleet staff to run maritime operations centers from two locations. 

He also dispatched a surface action group (SAG) to the Atlantic — the first to deploy to that ocean in more than a decade — elements of which operated in the Arctic region. 

The 2nd Fleet was established in 2018 to operate in the North Atlantic in response to the growing Russian presence in the ocean in recent years. In the previous two decades, the East Coast ships mostly deployed to Europe and the Middle East. 

“The Atlantic is a battlespace that can’t be ignored,” Lewis said, noting the increased Russian submarine presence and even a Russian icebreaker armed with Kalibr cruise missiles. 

Lewis said he did not expect that his fleet would operate its own command ship soon but that he saw his staff eventually “having a kit to deploy with which we don’t currently have,” but that he needed the personnel to maintain it. 

“The Atlantic is a battlespace that can’t be ignored.”

Vice Adm. Andrew “Woody” Lewis

Lewis said that soon the fleet will deploy a mobile operations center at an expeditionary location in the U.S. homeland under the auspices of U.S. Northern Command and that the fleet staff would deploy afloat on a ship that was not a command ship. 

Because of the Russian submarine threat, Lewis emphasized that the fleet is “re-learning” much of anti-submarine warfare (ASW).    

“It’s an all-domain integrated fight — in the air, on the surface, in the subsurface down to the seabed, and it’s in space,” he said. “It’s a really hard challenge, a real varsity operation. And that’s something we’re getting back into, very much so.”  

Lewis also praised the ASW capabilities of the Navy’s P-8 aircraft. 




Navy Deploys Low-Yield Nuclear Warhead in SLBMs, Pentagon Confirms

An unarmed Trident II missile launches from the Ohio-class ballistic missile submarine USS Nebraska off San Diego in September. The Pentagon confirmed that the W76-2 low-yield nuclear warhead is now deployed on the Trident. U.S. Navy

ARLINGTON, Va. — The U.S. Navy has deployed the W76-2 low-yield nuclear warhead in the Trident submarine-launched ballistic missile, the Defense Department confirmed Feb. 4. 

The deployment was reported in an article posted Jan. 29 on the website of the Federation of American Scientists (FAS) by William M. Arkin and Hans M. Kristensen and has been confirmed by John Rood, undersecretary of defense for policy. 

“The Navy has fielded the W76-2 low-yield submarine-launched ballistic missile warhead,” Rood said in the statement. 

“In the 2018 Nuclear Posture Review, the department identified the requirement to ‘modify a small number of submarine-launched ballistic missile warheads’ to address the conclusion that potential adversaries, like Russia, believe that employment of low-yield nuclear weapons will give them an advantage over the United States and its allies and partners. 

“This supplemental capability strengthens deterrence and provides the United States a prompt, more survivable low-yield strategic weapon; supports our commitment to extended deterrence; and demonstrates to potential adversaries that there is no advantage to limited nuclear employment because the United States can credibly and decisively respond to any threat scenario.” 

The FAS article claimed that the W76-2 is believed to have been deployed in late 2019 on the USS Tennessee, an Ohio-class ballistic-missile submarine based at Naval Submarine Base Kings Bay, Georgia. FAS said the W76-2 has a nuclear yield equivalent of five kilotons of explosives, compared with 90 kilotons for the W76-1 warhead and 455 kilotons of the W88 warhead.  

The low-yield warhead became a point of dispute between Democrats and Republicans in the Congress, with Democrats opposing the deployment, voiced by House Armed Services Committee Chairman Adam Smith (D-Wash). In the fiscal 2020 National Defense Authorization Act passed into law in December, the warhead survived conference committee negotiations and was approved for deployment.




Coast Guard Interdicts 69 Illegal Migrants

The Cutter Richard Dixon interdicted 37 illegal migrants near Desecheo Island, Puerto Rico, on Jan. 29. The interdiction was one of three during the week. U.S. Coast Guard

SAN JUAN, Puerto Rico — The U.S. Coast Guard Cutter Valiant repatriated 44 of 69 Dominican migrants to a Dominican navy vessel on Feb. 3, following the interdiction of three separate illegal migrant voyages near Puerto Rico and the Dominican Republic, the Coast Guard 7th District said in a release. 

Five of the interdicted migrants will remain in Puerto Rico to face possible federal prosecution on charges of attempting to illegally re-enter the United States. 

The interdictions were a result of ongoing efforts in support of Operation Unified Resolve, Operation Caribbean Guard and the Caribbean Border Interagency Group (CBIG).  

“These makeshift vessels were extremely overloaded and had been at sea for several days,” said Lt. Matthew Monahan, the Coast Guard Cutter Richard Dixon’s commanding officer. 

“Those aboard had no food or water left and were likely abandoned by the individual promising them passage to Puerto Rico once the vessel ran out of fuel. These survivors were lucky to be located in time to receive aid from Coast Guard personnel, but this is frequently not the case. This is just another example of why this type of journey is exceptionally hazardous and should not be attempted under any circumstances.”   

The first interdiction took place Jan. 28 after a U.S. Customs and Border Protection (CBP) Air and Marine Operations marine patrol aircraft crew sighted a 22-foot migrant boat disabled and adrift, about 45 nautical miles northwest of Aguadilla, Puerto Rico. The Richard Dixon interdicted the illegal voyage and embarked all 13 migrants, 11 men and two women.  

The second interdiction took place Jan. 29, after a CBP DHC-8 marine patrol aircraft crew sighted a 30-foot migrant boat disabled and adrift, about 12 nautical miles southwest of Desecheo Island, Puerto Rico. The Richard Dixon interdicted the illegal voyage and embarked all 37 migrants, 32 adult males and five females, including a 17-year-old minor.  

The third interdiction took place Jan. 30, after the crew of a Coast Guard HC-144 Ocean Sentry marine patrol aircraft sighted a 30-foot migrant boat disabled and adrift, about 37 nautical miles south of Isla Saona, Dominican Republic. The Valiant interdicted the illegal voyage as a Dominican navy vessel also responded to the scene. Once on scene, the crew of the Dominican vessel embarked the migrants for their return to the Dominican Republic. 

Once aboard a Coast Guard cutter, all migrants receive food, water, shelter and basic medical attention. 

The crew of the cutter Valiant transferred the five migrants awaiting federal prosecution to Ramey Sector Border Patrol agents in Mayaguez, Puerto Rico. 

The Richard Dixon is a 154-foot fast-response cutter homeported in San Juan, Puerto Rico, while the Valiant is a 210-foot medium-endurance cutter homeported in Mayport, Florida.




Navy, Boeing Successfully Link Piloted, Unmanned Growlers

The U.S. Navy and Boeing successfully flew two autonomously controlled EA-18G Growlers as unmanned air systems, using a third Growler as a mission controller. U.S. Air Force/Tech. Sgt. Larry E. Reid Jr.

ARLINGTON, Va. — Boeing and the U.S. Navy successfully flew two autonomously controlled EA-18G Growlers at Naval Air Station Patuxent River as unmanned air systems, using a third Growler as a mission controller for the other two, according to the company. 

The flights, conducted during the Navy Warfare Development Command’s annual fleet experiment exercises, proved the effectiveness of technology allowing F/A-18 Super Hornets and EA-18G Growlers to perform combat missions with unmanned systems. 

“This demonstration allows Boeing and the Navy the opportunity to analyze the data collected and decide where to make investments in future technologies,” said Tom Brandt, leader of Boeing’s manned-unmanned teaming demonstration. “It could provide synergy with other U.S. Navy unmanned systems in development across the spectrum and in other services.” 

Over the course of four flights, 21 demonstration missions were completed. 

“This technology allows the Navy to extend the reach of sensors while keeping manned aircraft out of harm’s way,” Brandt said. “It’s a force multiplier that enables a single aircrew to control multiple aircraft without greatly increasing workload. It has the potential to increase survivability as well as situational awareness.”




HII to Acquire Hydroid, Establish Alliance with Kongsberg Maritime

Members of the Office of Naval Research launch a REMUS autonomous underwater vehicle for mine search and identification operations in the Baltic Sea in 2018. Hydroid, maker of REMUS, will be acquired by shipbuilding giant Huntington Ingalls Industries. U.S. Navy/Chief Mass Communication Specialist America A. Henry

NEWPORT NEWS, Va. — Huntington Ingalls Industries (HII) has entered into an agreement to acquire Hydroid Inc., a provider of advanced marine robotics to the defense and maritime markets and a U.S.-based indirect subsidiary, wholly owned by Kongsberg Maritime, HII announced. 

In conjunction with the transaction, HII and Kongsberg Maritime are also establishing a strategic alliance to jointly market naval and maritime products and services to the U.S. government market and, potentially, to global markets. 

Hydroid, which is based in Pocasset, Massachusetts, will become part of HII’s Technical Solutions division. The acquisition of Hydroid expands HII capabilities in the autonomous and unmanned maritime systems market. 

The transaction is subject to regulatory review and customary closing conditions and is expected to close in the first quarter of 2020. The value of the transaction is $350 million, which will be effectively reduced by tax benefits that are preliminarily valued over $50 million, to be received by HII. 

The aircraft carrier John F. Kennedy under construction in dry dock last October. JFK is currently under construction at Huntington Ingalls Industries-Newport News Shipbuilding. U.S. Navy/Mass Communication Specialist 3rd Class Adam Ferrero

“We are very excited about bringing Hydroid into the HII family and establishing a strategic alliance with Kongsberg Maritime,” said Mike Petters, HII’s president and CEO. 

“Hydroid’s advanced capabilities and reputation for excellence in autonomous and unmanned maritime systems provide the perfect complement to our existing unmanned operations, including Proteus in Panama City and our partnership with Boeing to produce the Orca XLUUV. This transaction, along with the strategic alliance with Kongsberg Maritime, demonstrates our long-term commitment to the U.S. Navy, the U.S. Coast Guard and our national security customers and allies globally.” 

The strategic alliance between HII and Kongsberg Maritime leverages the companies’ combined capabilities and resources to enhance their respective services and product offerings to the Navy, Coast Guard and other national security customers. The companies will also explore opportunities to market each other’s products to customers on a global scale and to collaborate to create innovative solutions and additional opportunities for growth. 

Kongsberg Maritime is a wholly owned subsidiary of Kongsberg, which is headquartered in Norway. The group delivers advanced technology systems and solutions to clients within the defense and aerospace market and commercial maritime market. 

Since 2001, Hydroid’s REMUS line of unmanned underwater vehicles (UUV) has provided rapidly deployable solutions for use in defense, marine research and commercial applications. Hydroid specializes in UUV design, engineering, production and support. 

Huntington Ingalls Industries is America’s largest military shipbuilding company and a provider of professional services to partners in government and industry. For more than a century, HII’s Newport News and Ingalls shipbuilding divisions in Virginia and Mississippi, respectively, have built more ships in more ship classes than any other U.S. naval shipbuilder.




Austal’s Australian Operations Approved to Bid for U.S. Naval Ship Support

HENDERSON, Western Australia — Austal Limited’s shipyards and service centers in Australia have been approved to bid for and provide support services, including ship repairs, maintenance and sustainment activity for U.S. Navy and Military Sealift Command ships, according to the company. 

With the agreement of boat repair (ABR) now in place, Austal’s Australian operations may now bid to provide emergent repair services to deployed U.S. ships, including the Austal designed and constructed Independence-class littoral combat ships. The ABR also allows Austal to bid for maintenance and repair of MSC ships deployed to the region, to include the Austal designed and constructed Spearhead-class expeditionary fast transport (EPF) vessels. 

Austal CEO David Singleton said the approval from the U.S. Navy demonstrates Austal’s global capability to provide OEM support to major naval fleets. 

“With this approval, Austal can provide a range of vessel repairs, maintenance and in-service support to U.S. Navy and MSC ships operating throughout South East Asia,” Singleton said. 

“As the designer and builder, no one knows the Independence-class LCS or Spearhead-class EPF better than us, and we’re naturally very pleased and proud to now have the opportunity to provide local support for these vessels to the U.S. Navy, as opportunities arise,” he said. 

The approval from the U.S. Navy allows Austal to bid for work on U.S. naval vessels that may visit Australia, including Cairns in Queensland, Darwin in the Northern Territory or Fremantle (Henderson) in western Australia. 

Austal has delivered 10 Independence-class LCS to the U.S. Navy since 2010 and continues to construct six vessels at the Austal USA shipyard in Mobile, Alabama. A total of 19 Independence-class LCS have been contracted, along with 14 Spearhead-class EPF’s, 11 of which have been delivered to the American Navy. 




USS Fitzgerald Returns to Sea After Repairs

The guided-missile destroyer USS Fitzgerald departs Ingalls Shipbuilding’s Pascagoula shipyard on Feb. 3 to conduct comprehensive at-sea testing. U.S. Navy

PASCAGOULA, Miss. — The guided-missile destroyer USS Fitzgerald is underway to conduct comprehensive at-sea testing, marking a significant step in its return to warfighting readiness, Naval Sea Systems Command said Feb. 3. 

The ship departed Huntington Ingalls Industries’ Ingalls Shipbuilding’s Pascagoula shipyard to conduct a series of demonstrations to evaluate that the ship’s onboard systems meet or exceed Navy performance specifications. Among the systems that will be tested are navigation, damage control, mechanical and electrical systems, combat systems, communications and propulsion. 

The underway reflects nearly two years of effort in restoring and modernizing one of the Navy’s most capable warships after it was damaged during a collision in 2017 that claimed the lives of seven Sailors. 

“Since we launched the ship this past April, our efforts have focused on restoring ship systems, conducting pierside tests and readying the ship for sea,” said Rear Adm. Tom Anderson, NAVSEA director of surface ship maintenance and modernization, and commander of the Navy Regional Maintenance Center. 

“The government and industry team has been working hand-in-hand on this exceptionally complex effort, with a common purpose of returning Fitzgerald to sea and ultimately back to the Fleet.” 

When Fitzgerald returns to the shipyard, crew training and certifications will start as final work items are completed in support of the ship’s sail away later this spring. 

“We are excited to take the next step to get Fitzgerald back out to sea where the ship belongs. My crew is looking forward to moving onboard the ship and continuing our training to ensure we are ready to return to the fleet,” said Cmdr. Scott Wilbur, Fitzgerald’s commanding officer. 

After receiving its full complement of basic and advanced phased training, as well as crew and ship certifications, the USS Fitzgerald will return to the Fleet mission-ready with the improved capability and lethality required to successfully support high-end operations.