Meet HASC’s New Members and Subcommittee Chairs

Jan. 25, 2023 | By Greg Hadley

House Republicans unveiled the new members for the House Armed Services Committee and the HASC’s new subcommittee chairpersons Jan. 25, elevating Rep. Rob Wittman (R-Va.) to be the committee’s vice chairman behind chairman Rep. Mike Rogers (R-Ala.) and also naming Wittman to lead the Tactical Air and Land Forces subcommittee.

Wittman, whose district includes the Naval Surface Warfare Center and Naval Weapons Station Yorktown, previously was the ranking minority member on the Seapower and Projection Forces subcommittee, where he was a vocal proponent of building up the Navy’s fleet.

In his new role, Wittman will hold great sway over Air Force and Army acquisition programs. Past positions on airpower issues include support for competition for the Air Force’s KC-Y “bridge tanker” and concern about proposed cuts to the Air Force’s fighter fleet.

Replacing Wittman atop the Seapower and Projection Forces subcommittee, which oversees some Air Force programs, will be Rep. Trent Kelly (R-Miss.), whose district includes Columbus Air Force Base. Kelly is a major general and commander of the Mississippi Army National Guard.

Rep. Jim Banks (R-Ind.) will lead the Military Personnel subcommittee, which is responsible for quality-of-life and talent management issues. Banks is a critic of criticized the Air Force over so-called “wokeness” initiatives, which he has dismissed as “weakness.”

Rep. Doug Lamborn (R-Colo.) will chair the subcommittee on Strategic Forces after previously serving as its ranking member in the last Congress. Lamborn’s district includes the Air Force Academy, as well as Schriever Space Force Base, Peterson Space Force Base, and Cheyenne Mountain Space Force Station. He has been an active proponent of keeping U.S. Space Command based in Colorado, opposing a planned move to Huntsville, Ala., and supports creating a Space National Guard.

Other subcommittee chairs include:

Rep. Michael Waltz (R-Fla.) takes over as chair of the Readiness subcommittee, which oversees training, logistics, maintenance, military construction, installations, and family housing
Rep. Mike Gallagher (R-Wisc.) will chair the Cyber, Innovative Technologies, and Information Systems subcommittee
Rep. Jack Bergman (R-Mich.) will chair the subcommittee on Intelligence and Special Operations

House Democrats have not yet named the ranking members for the subcommittees or their full roster of HASC members. Both are expected to be announced this week. With the retirements of three former subcommittee chairs, House Democrats will have big shoes to fill. Rep. Jim Cooper, who chaired the Strategic Forces subcommittee; Rep. Jackie Speier, who chaired the Readiness subcommittee; and Rep. Jim Langevin, who led the Cyber, Innovative Technologies, and Information Systems subcommittee have all departed the House.

One high-profile Republican who did not get a subcommittee chair was Rep. Matt Gaetz (R-Fla.), who had been among a small group of Republicans who opposed Rep. Kevin McCarthy’s bid to become Speaker of the House. According to media reports, Gaetz had sought a subcommittee gavel in exchange for supporting McCarthy. Gaetz remains on the committee, however, along with 18 other returning Republican committee members.

Now in the majority, Republicans are adding 11 new members to the HASC.

Among the 11 newcomers are:

Rep. Nancy Mace (R-S.C.), whose district includes Joint Base Charleston which flies the C-17
Rep. Mark Alford (R-Mo.), whose district includes Whiteman Air Force Base and its B-2 bombers
Rep. Carlos Gimenez (R-Fla.), whose district includes Homestead Air Reserve Base and the F-16s of the 482nd Fighter Wing
Rep. Dale Strong (R-Ala.), whose district includes Redstone Arsenal, the tentative future home of U.S. Space Command
Del. James Moylan (R-Guam), whose district includes Andersen Air Force Base

As a delegate, rather than a member, Moylan cannot vote on the House floor but can vote in committee. His placement on the HASC restores a longstanding tradition of Guam delegates serving on the HASC. From 1985 to 2019, Dels. Madeleine Bordallo, Robert A. Underwood, and Vicente T. Blaz served on the committee consecutively.

Del. Michael San Nicolas has been the only Guam delegate in the past three decades who did not serve on the committee.

The full list of Republicans who will serve on the committee is as follows (new members are denoted with an asterisk):

Rep. Carlos Gimenez (R-Fla.)*
Rep. Nancy Mace (R-S.C.)*
Rep. Brad Finstad (R-Minn.)*
Rep. Dale Strong (R-Ala.)*
Rep. Morgan Luttrell (R-Texas)*
Rep. Jen Kiggans (R-Va.)*
Rep. Nick LaLota (R-N.Y.)*
Del. James Moylan (R-Guam)*
Rep. Mark Alford (R-Mo.)*
Rep. Cory Mills (R-Fla.)*
Rep. Rich McCormick (R-Ga.)*
Rep. Joe Wilson (R-S.C.)
Rep. Mike Turner (R-Ohio)
Rep. Doug Lamborn (R-Colo.)
Rep. Rob Wittman (R-Va.)
Rep. Austin Scott (R-Ga.)
Rep. Sam Graves (R-Mo.)
Rep. Elise Stefanik (R-N.Y.)
Rep. Scott DesJarlais (R-Tenn.)
Rep. Trent Kelly (R-Miss.)
Rep. Mike Gallagher (R-Wisc.)
Rep. Matt Gaetz (R-Fla.)
Rep. Don Bacon (R-Neb.)
Rep. Jim Banks (R-Ind.)
Rep. Jack Bergman (R-Mich.)
Rep. Michael Waltz (R-Fla.)
Rep. Mike Johnson (R-La.)
Rep. Lisa McClain (R-Mich.)
Rep. Ronny Jackson (R-Texas)
Rep. Pat Fallon (R-Texas)

US Arms Sales Shoot up Nearly 50 Percent in 2022, Driven in Part by Ukraine

Jan. 25, 2023 | By John A. Tirpak

Implemented government-to-government U.S. Foreign Military Sales (FMS) rose 49.1 percent in 2022, while authorized direct commercial arms (DCA) transfers rose 48.6 percent in the same period, the State Department announced Jan. 25—with the former being driven mainly by the billions of dollars in aid for Ukraine.

Those numbers very well may not cover the true size of the increase. Many cases are in the system—with letters of offer or agreement, for example—but not yet authorized or congressionally approved. The State Department does account for that fact by using a three-year rolling average in tracking changes to FMS and DCA.

“Given the multiyear implementation timeframes for many arms transfers and defense trade cases, the Department utilizes a three-year rolling average in reporting,” a press release stated. “Each proposed transfer is carefully assessed on a case-by-case basis, in accordance with the Arms Export Control Act and related policy and guidance. Major defense transfers and sales are also subject to Congressional notification.”

The overall FMS three-year rolling average actually declined 2.7 percent, from $47.08 billion to $45.8 billion, but “implemented” deals over the same period rose from $35.8 billion to $51.9 billion, making a 49.1 percent increase.

The three-year rolling average of FMS and DCS combined in fiscal 2022 was $153 billion, a 26.1 percent increase from the fiscal 2021 level of $121.4 billion.

Examples of FMS cases notified to Congress in fiscal 2022, which may not be implemented, include billions of dollars in air and air defense weapons, such as:

$13.9 billion for up to 36 F-15ID fighters to Indonesia
$3.05 billion for Patriot air defense missiles to Saudi Arabia
$3.0 billion in NASAMs air defense systems to Kuwait
$2.6 billion for 12 CH-47 Chinook helicopters to Egypt
$2.2 billion in 12 C-130J Super Hercules transports to Egypt
$2.2 billion in Theater High Altitude Air Defense Systems sales to the United Arab Emirates

The three-year rolling average of Direct Commercial Sales—in which the U.S. government plays less of a middleman role—amounted to $127.1 billion worth of authorizations in 2021, rising to $153.7 billion in 2022, including sales of hardware, services, technical data, “temporary imports,” re-exports, re-transfers and brokering, the State Department said.

The $153.7 billion marked a 49 percent increase from last year’s three-year rolling average of $103.4 billion.

“The increase in authorized value … was primarily due to the authorizations adjudicated in support of Ukraine’s efforts to defend itself from Russia’s unprovoked aggression,” the State Department said.

The U.S. has provided $27.5 billion in “defense assistance” to Ukraine since Russia’s invasion in February 2022, but a State Department official said that figure should not be construed as all military aid and should not be counted against the DCA figures.

Moreover, some of the DCA is “backfill” of partner or allied countries that want to replace materiel provided to Ukraine, and some of those cases are for greater amounts of equipment than was provided to Ukraine, “if they’ve decided they need more inventory for their own security,” the official said.

Direct sales notified to Congress included more than $2.6 billion for aircraft and air defense systems, such as:

$850 million for support for the Dutch F-35 fleet
$790 million for Slam Eagle fighters for South Korea
$588 million for S70 helicopters for Japan
$432 million for enhanced Patriot missiles for Saudi Arabia

The State Department also noted a “slight increase” to 13,445 “entities registered with the Directorate of Defense Trade controls to conduct defense trade activities.”

The Department said arms transfers and defense trade “are important tools of U.S. foreign policy with long-term implications for regional and global security.” In adjudicating arms requests, the U.S. “follows a holistic approach, which weighs political, military, human rights, economic nonproliferation, technological security, and end-use factors to determine the appropriate provision of military equipment and the licensing of direct commercial sales of defense articles to U.S. allies and partners.”

The total number of licenses adjudicated by State in fiscal 2022 was 22,138, down 6.8 percent from the 23,757 in 2021.

The State Department said the three-year averages “are not predictive of future year sales,” which could rise or fall based on “fluctuating foreign defense budgets, regional security issues, and ongoing changes to defense trade licensing jurisdiction, resulting in changes in technology and export controls.”

Portions of the defense industry have been campaigning for a relaxation of export controls on technologies such as remotely-operated drones, for example, which can easily be obtained from adversary countries if the U.S. is unwilling to approve their export.

Boeing Touts Autonomy as the Future for Defense Business Turnaround

Jan. 25, 2023 | By Chris Gordon

Boeing’s defense business has stabilized following a series of massive quarterly losses that put the company in a precarious position, top executives said on an earnings call Jan. 25.

Now, officials said they are focused on moving forward with new technology in the Boeing Defense, Space, and Security unit, known as BDS.

At the top of mind: fully autonomous systems and platforms that use manned and unmanned teaming.

“I believe autonomy and teaming are going to be one of the real drivers with respect to airplane development,” Boeing chief executive officer David L. Calhoun said of future military aircraft.

Calhoun said both the Air Force and Navy are looking towards those technologies as key requirements for future programs.

The Air Force has its concept of collaborative combat aircraft, or CCAs, a planned variety of semi-autonomous systems that will use artificial intelligence to aid pilots of future manned aircraft.

“We’re already invested and we’re making real progress with both of those members of the fighting forces,” Calhoun said of the future Air Force and Navy autonomous programs.

“The development that we’ve sustained over all these years, I feel really good about,” Calhoun added.

Boeing is working on unclassified unmanned systems, such as the MQ-28 Ghost Bat, which is designed to use artificial intelligence and autonomy to support manned aircraft, and the large Orca underwater uncrewed vehicle.

But Boeing’s top boss also cited “really new” classified programs the company is working on that he was “excited” about.

In the past year, Boeing has posted multi-billion dollar losses in its defense business, caused by ongoing cost overruns and delays with its KC-46 Pegasus tanker and the new Air Force One, also known as VC-25B, programs. In November, Boeing revamped its BDS executive team and restructured the business, consolidating the number of divisions. In the fourth quarter of 2022, the defense business was able to tread water.

“The big focus for the BDS leadership team was to improve executions to improve execution and stability both in the factory and in the supply base,” Brian West, Boeing’s chief financial officer, said.

The KC-46 in particular has been a headache for Boeing, facing issues from faulty cargo locks to a stiff boom actuator to problems with its Remote Vision System, which have required an expensive rework. Despite all that, Boeing officials said they think their tanker business is in good shape as the firm works on an autonomous refueling capability. In December, officials said a KC-46 had successfully refueled from another KC-46 autonomously, with a human in the loop as a safety precaution.

“These are things we’re fully invested in,” Calhoun said.

Competitor Airbus has also demonstrated its A330 MRTT tanker can conduct autonomous refueling, or what it calls automatic air-to-air refueling.

Airbus and Lockheed Martin have teamed up to sell a version of that tanker to the Air Force, called the LMXT, for the service’s possible KC-Y “bridge tanker” program between current Air Force tankers—which, save for the KC-46 are decades-old—and a future next-generation capability. Lockheed Martin has billed the LMXT’s autonomous refueling capably as one of its key features.

The Air Force does not currently have a program that requires autonomous refueling, though Boeing officials see the technology as a long-term asset.

While Boeing is still feeling the hit from its fixed-price contracts that led to significant cost overruns, Calhoun said he was upbeat about the company’s future defense programs.

“I’m sorry [about] some of the contracting methods that we used,” Calhoun said. “But we are where we are.”

“We’ve got work to do, but we’re feeling really good about our progress,” Calhoun added.

MH-139 Production Decision Coming in Weeks; New Squadron Standing Up As Well

Jan. 24, 2023 | By Greg Hadley

After months of delays and a new report raising questions about its worthiness, the Air Force is nearing a key production decision for its new MH-139 Grey Wolf helicopter—and laying the groundwork to ensure forces are ready when it arrives.

The Air Force Life Cycle Management Center said it is “on track” for the “Milestone C” production decision in February or March, AFLCMC spokesman Brian Brackens confirmed to Air & Space Forces Magazine.

Military flight testing began in August after a yearlong FAA certification delay. Last week, in its annual report, the Pentagon’s Office of the Director of Operational Test & Evaluation (DOT&E) warned there might not be enough time for testing before the anticipated production decision.

But Brackens said in an email that the production decision won’t come until the Air Force has “performed sufficient flight testing to enable completion of all Milestone C entry criteria.”

Malmstrom Air Force Base, Mont., will be the first operational base for the Grey Wolf aircraft and will host much of the operational testing, while Maxwell Air Force Base, Ala., will host the MH-139’s Formal Training Unit.

Joining a panel discussion hosted by the Mitchell Institute for Aerospace Studies on Jan. 24, Maj. Gen. Michael J. Lutton, commander of the 20th Air Force, said he is standing up a provisional helicopter squadron at Malmstrom now to ensure operational testing and training stays on schedule.

“It’ll be the 550th Helicopter Squadron, and its sole focus will be on training, while our teammates at Maxwell ramp up their training capability,” Lutton said. “That squadron will stand up sometime this February and take that mission for five years.”

Air Force Global Strike Command and the 20th Air Force have employed provisional helicopter units before. In 2014, AFGSC stood up the 20th Air Force Helicopter Operations Group (Provisional), to “identify, prioritize and create the facility, personnel, communication and process infrastructure” needed as the command shifted control of its helicopter squadrons from individual base’s missile wings to one group.

The 40th Helicopter Squadron at Malmstrom was one of those units and now flies the UH-1N Huey, which the Grey Wolf will replace. The helicopters fly patrol, escort, and transportation missions to support the base’s sprawling missile fields.

Malmstrom Airmen got a sneak peek at the MH-139 in November, when four landed on their way from Colorado after testing. Lutton said the Air Force is also supporting an exchange program with the Irish Air Corps, which flies AW139 helicopters on which the MH-139 is based. Pilots, flight engineers, and security forces members have all had a chance to familiarize themselves with the helicopters’ capabilities. A more in-depth exchange is in the works.

“Global Strike Command, 20th Air Force, and headquarters [U.S. Air Forces in Europe are]… looking to realize an exchange program with the Italian Air Force this summer where one of our helo pilots will go over to Italy for three years and fly their version of the 139 and then come back into our 139 community,” Lutton said.

Lutton said the objective is to fully leverage what the Grey Wolf can do, rather than apply Huey tactics and procedures to a more modern and capable aircraft. Paraphrasing former AFGSC commander Gen. Timothy M. Ray, Lutton said, “What we’re not looking to do is develop ‘old new,’ right? So we have a new weapons system with the Grey Wolf. … It would be completely incorrect to export every [tactic, technique, and procedure] from the Huey and apply it to the Grey Wolf. It would be completely incorrect to export the standard conventional load, if you will, of our defenders on a Huey and say that’s what we need on a Grey Wolf.”

Preparing to bring on new capability and a modern aircraft is challenging and motivating, Lutton said. “I think these are exciting times.”

What Concerns These Air Force Generals Most about Nuclear Modernization Right Now

Jan. 24, 2023 | By Christopher Prawdzik

Manpower, material, and funding remain the foundation—and a key concern—for the Air Force’s top-to-bottom nuclear modernization effort, a pair of top generals said Jan. 24.

That modernization effort covers everything from personnel to weapons systems to entire facilities, and the service must execute this massive undertaking without losing the slightest bit of operational superiority in a world where nuclear threats have considerably increased, Lt. Gen. James C. Dawkins Jr. and Maj. Gen. Michael J. Lutton said during an Aerospace Nation event hosted by the Mitchell Institute for Aerospace Studies.

A reminder of those increased threats came shortly before the event began, when the Bulletin of Atomic Scientists moved its infamous “Doomsday Clock” to just 90 seconds before midnight, the closest it has ever been, driven primarily by Russia’s invasion of Ukraine and subsequent nuclear saber-rattling.

At the same time, the Air Force is in the thick of its nuclear modernization program—according to Dawkins, deputy chief of staff for strategic deterrence and nuclear integration, the “bow wave” of new requirements and fielding of new systems discussed a decade or more ago is now here. With the enormous number of systems and improvements on the horizon, immense challenges follow.

“Believe it or not, what I worry about most, more than anything right now—more than technology—is concrete and rebar, reinforcement steel that goes in the concrete to build the 650 construction projects that we have, not just in the missile fields but across the nuclear enterprise,” Dawkins said. “It has to be built in the next 12 years in 13 states.”

He noted a number of systems and equipment that will be fielded in the coming years, including the recently rolled-out B-21, the air-launched B61-12 tactical bomb, the MH-139 Grey Wolf helicopter for missile site security, and a modernized nuclear command, control, and communications network. But that’s only part of the picture.

“Anytime you transition and do everything at the same time, you’ve got to really be careful about how you orchestrate that,” Dawkins said. “That is going to require a lot of work by our Global Strike Command to ensure that they, again, do that just right.”

The personnel component to these efforts is also crucial, and Dawkins particularly emphasized the need for experts in critical areas—such as electricians, pipe fitters, and welders—to keep the multitude of projects on schedule.

Lutton, commander of the 20th Air Force, discussed the human capital component of the process and how talent management shapes and is shaped by emerging systems and technology. He focused on the integration of Grey Wolf, along with the ground-based Sentinel ICBM system that’s replacing the Minuteman III.

“Some of the similar questions about talent management, talent retention, talent placement, when you’re building a new weapon system, are agnostic of the weapon system, whether it’s an aircraft or a missile system,” Lutton said. “So Gray Wolf right now is teaching us some lessons that will definitely export to Sentinel.”

Lutton said Sentinel has prompted some organizational changes, with the flight test squadron evolving into a test and evaluation group. This will include a flight test squadron, test support squadron, and a maintenance test squadron. Overall, these developments have expanded opportunities for Airmen across the board, particularly when it comes to the country’s ICBM defense.

“Historically, and by historically I can only talk about the time that I’ve served, we’ve never really been ‘Total Force’ in the ICBM business,” Lutton added, noting that the first Reservist weapons officer graduated from the U.S. Air Force Weapons School in December. “We are looking to build so much more Total Force opportunity in the ICBM business, and that does two new things for us: One, it gives us incredible depth of expertise, and two, it allows our Airmen to have options.”

In addition, Lutton noted the service has increased communication about “why” Airmen are doing what they’re doing, looking closely at world events and diplomacy to form a better understanding of their role.

“There’s a component to it where we have to ensure that we’re still very active with counterproliferation,” he said. “We still have to ensure that we’re very active with nuclear nonproliferation, and then we have obviously a very healthy treaty system that is transparent and compliant.”

Dawkins said stable funding remains essential, and he’s pleased with the bipartisan support the mission has had for many years—even with the scrutiny the nuclear enterprise often receives. Still, raw materials, personnel, and tight timelines remain at the forefront.

“We deferred programs back to the early 2000s, and then we had sequestration, and so we don’t have a lot of margin to produce these,” he said, adding that while producing new systems, the current ones must endure. “The ICBMs that Gen. Lutton commands and is in charge of out there in missile fields have to be as good on their last day as they were on their first day, and that continues to get more challenging.”

‘Keep It Simple, Stupid‘—Senior Military Space Leaders Focus on Streamlining Acquisition

Jan. 24, 2023 | By Chris Gordon

Senior U.S. military space and intelligence leaders drove home a clear and consistent message at a gathering of space industry and government officials Jan. 24: The Department of the Air Force and the intelligence community must move from a bloated, complicated acquisition process to one in which space systems can be fielded faster and better meet requirements.

In remarks at a conference held by the National Security Space Association, leaders from the Department of Air Force, Space Force, and intelligence community framed the issue in blunt terms.

“We have a culture we have to break,” undersecretary of the Air Force for space acquisitions and integration Frank Calvelli said.

While Calvelli had some critiques of industry, he put much of the blame for issues he sees on the Department of Air Force’s own lack of clarity on what it wants from specific space programs. Calvelli noted that the Pentagon often rethinks and modifies programs to fit the current budget, shifting scheduling and adding and removing capabilities.

Calvelli has outlined clear goals for the way he wants the Department of Air Force to conduct business: shorter, three-year start-to-launch times, smaller systems, more use of commercial assets, and the use of fixed-price contacts to prod industry to deliver programs focused and on time.

“We like to build new,” Calvelli said. “New is cool. But we have to stop building new and take advantage of existing designs if we really want to drive schedules to be faster.”

Calvelli noted that he does not to hamstring future technologies, but he does want to increase speed in the acquisition process and proliferate the sources of America’s space assets to complicate targeting for America’s adversaries.

He pointed to his time as a senior official at the National Reconnaissance Office, which he said takes a more hardline approach to contracting than the Department of Defense’s process, which defense leaders, experts, and elected officials have long said needs reform.

One common DOD practice Calvelli cautioned against is awarding contracts to the lowest bidder. He said the Department of the Air Force must take a hard look at whether contractors for its space projects can actually deliver before spending millions of dollars on a project that is ultimately canceled.

“You get to the mode where you’re just reviewing the proposal, and you don’t take into account knowledge about the company, or you don’t know about the company,” Calvelli said. “You can end up awarding a significant space program to a part of a company or to a company that has absolutely no experience and no chance of actually executing the program.”

Another of Calvelli’s points of emphasis was moving towards as many commercial assets as feasible, both to take advantage of existing technology and proliferate the sources of America’s space assets to complicate targeting for America’s adversaries.

Calvelli’s views are shared across the military space enterprise, according to the deputy commander of U.S. Space Command.

SPACECOM is focused on “staying in our lane,” Lt. Gen. John E. Shaw told reporters, instead of “unnecessarily or prematurely” focusing on broad solutions that don’t align with specific operational requirements, which may be more limited.

Similarly, as the Space Force enters its fourth year, it cannot lose sight of its core missions of maintaining and building systems that allow the entire U.S. military to fight, the service’s deputy chief of space operations for intelligence said.

“Keep it simple, stupid,” Space Force Maj. Gen. Gregory J. Gagnon said. “Let’s just do small things, do them really fast, and continue to move forward. I think that’s absolutely the right way ahead.”

U.S. officials have noted that because space is a largely classified realm, frank discussion about issues with an asset can be limited.

But while Calvelli said he is sometimes frustrated with DOD’s space acquisition process, one of the nation’s most senior intelligence officials said some of the same issues extend to the rest of the federal government’s national security enterprise.

“We recognize that we have to figure out how to move faster in our acquisition realm,” said Stacey Dixon, the principal deputy director of national intelligence.

Dixon noted the intelligence community is naturally risk-averse, methodical and still working out how to fix its processes.

“We will continue to try to decrease the amount of time that it takes to do work with us and the amount of time that it takes for decisions to be made of which they’re waiting on our input,” Dixon said.

Lockheed: F-35 Deliveries Still Frozen, Classified Programs Growing Fastest

Jan. 24, 2023 | By John A. Tirpak

Lockheed Martin continues to build F-35 fighters, but deliveries are still on hold as the government and Pratt & Whitney investigate engine issues that contributed to an F-35B crash in December 2022, Lockheed officials said in a Jan. 24 earnings call with financial reporters.

Also during the call, officials reported that Lockheed’s classified business is growing faster than all other areas and revealed a $225 million charge against a secret program taken two years ago was on the AGM-183 ARRW hypersonic missile, on which the company took another $20 million charge in the fourth quarter of calendar 2022.

Executives also hinted that they expect contracts to be awarded on the Next-Generation Air Dominance program to be awarded around 2025.

F-35s Still Undelivered

“I think it’s really important to differentiate between delivery and production” of F-35s, company chief executive officer Jim Taiclet said on the earnings call.

“We are continuing production in the final assembly factories at Fort Worth, in Italy, and in Japan, at the same pace we expected to before the mishap occurred,” he said. “We’re also continuing to order and receive parts and materials from our supply chain as well.”

Acceptance flights, which are conducted by Lockheed and government pilots, are “on hold right now,” but the company is not chiefly paid based on deliveries, he said.

“The vast majority of our revenue, much greater than 90 percent, is earned” during production, he said, so the company doesn’t anticipate a huge hit on revenue due to the delay.

The delivery pause started shortly after Lockheed and the F-35 Joint Program Office agreed to a contract for Lots 15-17 of the aircraft, which Lockheed officials characterized as having “secured” a minimum number of F-35s over the next three lots. Lot 17 remains undefinitized.

Taiclet could not predict when deliveries will resume, saying the timing will depend on “when the U.S. government and the propulsion supplier conclude their ongoing mishap investigation.” Pratt & Whitney, a division of Raytheon Technologies, makes the F135 engine that powers all variants of the F-35 fighter. Raytheon officials did not comment on the status of the F135 in their earnings call, also held Jan. 24.

The F-35 Joint Program Office could not immediately comment on the status of the mishap investigation or when deliveries might resume.

ARRW Charge

Company chief financial officer Jay Malave acknowledged that the company took a $20 million charge on the AGM-183A Air-launched Rapid Response Weapon in the fourth quarter—in addition to a $225 million charge against the program in 2021. Until now, Lockheed has not acknowledged that the 2021 charge was against the ARRW program.

“On the charge we took that was related to the program, we continue to have some learnings there,” Malave said. “But … Skunk Works is doing a great job managing that program. And, you know, this is a development program where … you continue to have learnings but in the grand scheme of things, I think we’ve managed that quite well.”

After a string of failures over several years—three in 2021 alone—the ARRW program registered successful powered flights in May and July of 2022, followed by a successful all-up test of an operationally-configured missile in December.

Classified Programs

Lockheed’s classified programs “achieved successful milestones across multiple business areas in 2022 and grew 5 percent year over year,” Taiclet said, adding that “we continue to expect growth on classified that will outpace the rest of the portfolio over the next several years.”

Asked about the Next-Generation Interceptor and Next-Generation Air Dominance programs, Malave said Lockheed is confident about the NGI and “other programs here that are classified. … We expect some of those awards to be made either at the tail end of this year or into next year as well.” The Next-Generation Interceptor award is expected in 2025, “and some of these [classified] programs that I just spoke of between now … and 2025.”

Strong Interest in Other Programs

Taiclet said aircraft maker Sikorsky, a Lockheed subsidiary, was “disappointed” not to win the Army’s Future Long-Range Assault Aircraft and is “officially protesting” the Army’s choice of Bell Textron to build the aircraft. Sikorsky’s entry had “the speed, range, maneuverability and survivability” required and “is the [most] transformational and most cost-effective aircraft that best meets the selection criteria for this competition,” he said. And despite the Air Force’s cutback to its Combat Rescue Helicopter program, Taiclet said the company’s Black Hawk helicopters remain popular.

Similarly, Taiclet noted strong interest in the new Block 70 version of the F-16 fighter, which made its first flight successfully from the company’s Greenville S.C. facility Jan. 24. Twenty of the aircraft are now in work, and they will be delivered at a rate of 7-8 per year beginning this year, Taiclet added. There is significant “organic” interest in the aircraft, he said, meaning that countries already operating the F-16 may buy more—Jordan and Bulgaria are expected to make deals soon. Taiclet was also optimistic that, after long negotiation, India may order its own version of the Block 70, called the F-21, which would entail a licensed production capability in India.

Taiclet said Lockheed hasn’t had huge problems with inflation because its suppliers largely have fixed-price contracts with the company.

Where inflation is having an effect is on “new proposals … where you’ve got suppliers unwilling to provide longer-term price commitments.” There’s more negotiation on “economic price adjustments, which are escalation clauses, inflation clauses. … It’s still an ongoing issue,” Taiclet said.

He said Lockheed is getting “squeezed with our customer” and is trying to negotiate “so we can accommodate” both vendors and customers alike.

US, Israel Kick off Massive Exercise with 142 Aircraft, Satellites, and More

Jan. 23, 2023 | By Chris Gordon

The U.S. and Israel kicked off a massive combined weeklong military exercise Jan. 23, the largest since Israel was moved to U.S. Central Command’s area of responsibility in 2021.

U.S. officials told Air & Space Forces Magazine the exercise, dubbed Juniper Oak, was notable in both size and scope. CENTCOM said everything from space assets, a carrier strike group, strategic bombers, stealth fighters, electronic warfare aircraft, Special Operations forces, and crews operating HIMARS precision artillery launchers would drill in a “combined joint all-domain exercise.”

The exercise will run from Jan. 23-27 and involve 180,000 pounds of live munitions and 6,400 U.S. personnel, 450 of which will be on the ground in Israel. Operations will take place in Israel and the Eastern Mediterranean Sea.

The exercise “underscores our commitment to the Middle East,” CENTCOM commander Gen. Michael “Erik” Kurilla said in a statement.

“No country in the world can bring this level of combat power, with such agility into a region” that is not its primary focus, said Bradley Bowman, a former Army aviator and military expert at the Foundation for Defense of Democracies. “At the same time, it’s important for our adversaries and our allies, frankly, to know that and our partners and everyone in the region to know that.”

The drills mark a significant step towards integrating Israel with U.S. forces in the region. Until late 2021, Israel was considered part of U.S. European Command’s area of responsibility, a somewhat incongruous placement that limited the ability of the two nations to exercise together despite facing some common adversaries, such as Iran. The arrangement reflected older sensitivities among Arab states about cooperating militarily with Israel, but relations have warmed between Israel and some Arab states after the signing of the Abraham Accords.

Just a year and a half later, U.S and Israeli forces are conducting a significant exercise of capabilities that will be used in the Department of Defense’s ambitious Joint All-Domain Command and Control (JADC2) concept by practicing operations “on land, in the air, at sea, in space, and in cyberspace,” according to Kurilla.

“We are not leaving the region,” Bowman said. “Exercises like this demonstrate the truth of a sustained, persistent, and serious U.S. military presence in the region.”

Of the 142 aircraft participating, 100 are American, including everything from four Air Force B-52 Stratofortress strategic bombers to four Army AH-64 Apache attack helicopters. The U.S.’s robust air presence also includes specialized airborne early warning planes, surveillance assets, and electronic warfare aircraft, such as an Air Force RC-135 reconnaissance plane, Navy E-2D Hawkeyes, and EA-18 Growlers. The George H.W. Bush carrier strike group will support six EA-18s, five E-2Ds, and 45 F/A-18s. The U.S. Air Force is also sending four fifth-generation F-35s, which are not normally based in the region, joining six F-35s from the Israel Defense Forces.

In addition to its stealth fighters, the U.S. Air Force is sending four F-15E Strike Eagles and four F-16 Fighting Falcons, as well as Air Force Special Operations components such as an AC-130 gunship. Israel has 32 fixed-wing fighters participating.

The Space Force will also be represented in Juniper Oak, with low Earth and medium Earth orbit satellites under the control of the command’s new space component, SPACECENT.

CENTCOM said the focuses of Juniper Oak include combined command and control, maritime air operations, combat search and rescue, electronic warfare, suppression of enemy air defenses, air interdiction, and strike coordination.

The exercise takes place amid continued tensions in the region. Iranian-backed militias have launched drone and missile attacks against U.S. forces and allies—a drone attack took place Jan. 20 against the Al Tanf Garrison in southeast Syria, though the U.S. has not formally ascribed responsibility.

Iran has also alarmed the U.S. by providing drones to Russia for Moscow’s attacks in Ukraine and has exceeded the limits of the 2015 accord limiting its nuclear program. National Security Adviser Jake Sullivan traveled to Israel from Jan. 18 to Jan. 20 to discuss a range of issues, including Iran’s continued threats in the region, according to the White House.

In a statement, Kurilla said the exercise “enhances our ability to respond to contingencies.”

Senior @CENTCOM officials will visit the sites of the exercise throughout the week.

The exercise is an additional layer of defense that strengthens and trains the multi-branch and international methods of action among the militaries to counter a variety of regional threats. 2/2
— Israel Defense Forces (@IDF) January 23, 2023

Juniper Oak will include 142 total aircraft, both fixed-wing and helicopters. The 100 American aircraft include:

Four B-52s
Four F-35s
Two MQ-9s
One HC-130
Two HH-68s
Four AH-64s
One AC-130
Four F-15Es
Four F-16s
45 F/A 18s
One RC-135
Six EA-18s
Two KC-46s
Five E-2Ds
15 MH-60s

Israeli forces will fly 42 aircraft:

Six F-35s
18 F-16s
Eight F-15s
One CH-53
One UH-60
One Gulfstream G550
Two 707s
Two unmanned aerial vehicles
Two AH-64s

The exercise includes six U.S. ships, including the USS George H.W. Bush, its air wing, and cruisers and destroyers. Six Israeli ships are participating.

Four HIMARS launchers will provide long-range precision fire from the ground.

All told, 7,580 personnel are participating, including 6,400 Americans, 450 of which are in Israel. Israeli forces involved in the drills number 1,180.

Leading Lawmaker: Delay in Replacing Munitions Should be a ‘Flashing Red Light’

Jan. 23, 2023 | By John A. Tirpak

The fact that it will take years to replenish U.S. stocks of weapons supplied to Ukraine ought to be a “flashing red light” that the defense industrial base is not prepared for superpower competition, Sen. John Cornyn (R-Tex.) said on an American Enterprise Institute webcast Jan. 23.

Citing a Center for Strategic and International Studies report that it will take five years to fully replenish just the 155mm artillery ammunition supplied to Ukraine—at the rate of 93,000 rounds per year—and there will be similar delays in replacing other such materiel, Cornyn said it is clear “we’re not ready” for the demands of facing off against China in a new, multipolar military competition.

Cornyn is a member of the Senate Intelligence, Finance, and Judiciary committees.

“Clearly, our industrial base is not engaged” to produce at necessary levels, Cornyn said, adding he finds the situation shocking. “I think they’re waiting for demand signals, primarily prompted by appropriations by Congress and multiyear contracting.”

But Cornyn also said he’s not seeing an “‘all hands on deck’ commitment” from the Biden administration to remedying the situation.

The last two defense budgets approved by the Congress were tens of billions of dollars beyond what the administration requested, Cornyn said, indicating a “bipartisan interest” in getting defense stockpiles up to where they need to be to deter a peer adversary. “We need to be ready” to deal with aggression “in more than one part of the world,” he said. The level of weapons production is a “glaring problem,” he added.

However, there are no guarantees that bipartisan support for greater defense spending will continue, Cornyn warned.

“I think it’s going to be hard fought,” he said, citing the $30 trillion national debt and “a great deal of public concern” that this leaves the nation little flexibility to deal with another financial, health or military disaster.

“What it means is that if we have another pandemic, if we have another financial crisis like we had in 2008, interest rates are now high because of inflation. We have a lot less flexibility in dealing with those than we would if we had a more reasonable debt to GDP ratio. So … there’s going to be a lot of hard-fought debate about that. But I would say the days the days of spending all this money like we did in last two years” on various infrastructure and pandemic smoothing-out programs, “those days are over.”

Asked why this situation seems so intractable, Cornyn opined that “we try to repeatedly cash the ‘peace dividend’ when there is no peace.” He said the invasion of Ukraine by Russia was a clear sign that “our holiday from history is over.”

The U.S. is now in a “great power competition … and we haven’t risen to the challenge.” He said the situation requires “a sense of urgency” lacking in the Biden administration, and while he applauded the general direction set out by the National Security and National Defense Strategies, “right now I don’t see anything that gives me a great deal of comfort” that the nation is properly prepared for “a multifront … conflict.”

The amount of equipment and aid flowing to Ukraine has been adequate, Cornyn said, but while he would like to see even more, there are some in Congress who may grow tired of a long-term commitment to the war.

Historically, “the longer these things go on, the more the American people become … fatigued … by the endless expenditure of funds, and [they] say, ‘this has got to come to an end,’” he said.

The intelligence community is good but not “a mind-reader,” Cornyn said, and it’s impossible to know how long Russian President Vladimir Putin will keep us his aggression, even if he’s not succeeding.

“I think he’s ready to grind the Ukrainians into submission as long as he can,” Cornyn said. “He’s ready to outlast the West in terms of our support commitment to helping the Ukrainians.”

However, that doesn’t mean the U.S. should give the Ukrainians an ultimatum to accept a truce, Cornyn said.

“I don’t believe it’s our job … to tell the Ukrainians, ‘you must take this deal … or else we’ll pull the plug on our support.‘ I do not think that’s appropriate,” the senator said.

As for China’s designs on Taiwan, Cornyn said the U.S. must learn from Ukraine that “one guy” can “wake up in the morning” and decide to invade another country, potentially without warning.

China’s non-transparent defense spending has increased “tenfold” since 1990, Cornyn noted, saying “they’re preparing … for ‘something.’”

To deter China, Cornyn said Taiwan must be strengthened, “and we’re doing that.” But he said he does not believe Taiwan is yet strong enough to thoroughly discourage China, and the U.S. must also show it is willing to match China.

And while it is true that the U.S. has more allies than China, no one should assume that all of America’s allies in the Pacific would “come running” if Taiwan is invaded, Cornyn added; on recent trips to the Pacific, Cornyn said he detected little enthusiasm for coming to Taiwan’s rescue from Australia or New Zealand, and Indian Prime Minister Narendra Modi’s government has proven “a disappointment” because of its unwillingness even to condemn Russia’s invasion of Ukraine.

For its part, “Japan clearly believes that an attack on Taiwan would threaten their national security interests, particularly given the … disputed islands in in the South China Sea,” Cornyn said. “But again, I’m a little less confident about what some of our other friends might do. And so I don’t think we should assume that the cavalry” would ride to the rescue, “but I do think that our national security interest” and economic interests would suffer greatly if China invaded Taiwan and “we let them succeed.”