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DoD/News
GAO: DoD Should Update Financial Mgmt Guidance to Meet Cash Balance Requirements
by Ramona Adams
Published on July 3, 2017
GAO: DoD Should Update Financial Mgmt Guidance to Meet Cash Balance Requirements


GAO: DoD Should Update Financial Mgmt Guidance to Meet Cash Balance RequirementsThe Government Accountability Office has urged the Defense Department to update its Financial Management Regulation to help maintain cash balances within upper and lower cash requirements.

GAO said Friday DoD’s Defense-wide Working Capital Fund reported that monthly cash balances were outside limits set by FMR for 87 of 120 months from fiscal years 2007 through 2016.

The Defense Finance and Accounting Service, Defense Information Systems Agency and Defense Logistics Agency use the DWWCF to charge for goods and services delivered to the U.S. military and other customers.

GAO noted the cash reserves were outside requirements primarily due to changes in fuel costs.

DoD’s FMR includes guidance on tools managers can use to help keep monthly cash balances within limits but the regulation does not contain instructions on when to use such tools.

The DWWCF might not be able to pay bills on time or hold funds that could be used for other priorities when monthly cash balances do not meet requirements for a long time, the report stated.

GAO recommended DoD to update the FMR to add guidance on when DoD managers should use available tools to maintain monthly cash balances within required levels.

DoD/News
Senate Panel’s 2018 NDAA Would Reorganize DoD CIO Office, Ban Russian Anti-Virus Software
by Ramona Adams
Published on July 3, 2017
Senate Panel’s 2018 NDAA Would Reorganize DoD CIO Office, Ban Russian Anti-Virus Software


Senate Panel's 2018 NDAA Would Reorganize DoD CIO Office, Ban Russian Anti-Virus SoftwareThe Senate Armed Services Committee’s version of the fiscal 2018 defense policy bill would ban Kaspersky Lab‘s anti-virus software from Defense Department systems and reorganize the DoD chief information officer position, Defense One reported Friday.

SASC unanimously approved the 2018 National Defense Authorization Act, that calls for the department to divide the current CIO duties between the chief management officer and a new “chief information warfare officer.”

A provision of the bill would also prevent all DoD components from using anti-virus software made by Moscow-based company Kaspersky, due to reports that the firm might be influenced by the Russian government.

Kaspersky said it does not have ties with any government and has not supported cyber espionage activities.

Both provisions are not included in the House Armed Service Committee’s version of the 2018 NDAA, according to Defense News.

DoD/News
Matthew Donovan Nominated as Air Force Undersecretary
by Scott Nicholas
Published on June 30, 2017
Matthew Donovan Nominated as Air Force Undersecretary


Matthew Donovan Nominated as Air Force Undersecretary
Matt Donovan

Matthew Donovan, a policy director and professional staff member at the Senate Armed Services Committee, has been nominated to serve as the next U.S. Air Force undersecretary, Air Force Times reported Thursday.

In his current role, Donovan advises committee Chairman John McCain (R-Arizona) on matters related to the Defense Department‘s fixed-wing, manned and unmanned tactical aviation programs for all four service branches, as well as on Air Force aircraft procurement, research, development, bomber, mobility and sustainment efforts.

The 26-year Air Force officer has recorded more than 2,900 flight hours with F-15 and F-5E aircraft during his military career.

He also supported various combat missions as a pilot under Operation Southern Watch in Iraq and led the 95th Fighter Squadron at Tyndall Air Force Base.

Donovan worked as a senior defense policy analyst at Science Applications International Corp. from October 2008 to March 2009.

Government Technology/News
GAO: DoD Should Apply Commercial Practices in Tech Development
by Ramona Adams
Published on June 30, 2017
GAO: DoD Should Apply Commercial Practices in Tech Development


GAO: DoD Should Apply Commercial Practices in Tech DevelopmentThe Government Accountability Office has recommended that the Defense Department form a science and technology management framework that will incorporate best practices from industry.

GAO made the recommendation after it reviewed technology development practices of Amazon, IBM, Siemens, Dow Chemical, Honeywell, General Motors, Qualcomm  and Valvoline, the agency said Thursday.

The agency found that all eight companies separate their technology investments into ‘incremental’ and ‘disruptive’ portfolios to promote existing products in the short term and explore new technologies for long-term competitiveness.

GAO noted some DoD practices reflect those of the firms reviewed and the department’s capacity to adopt industry methods is limited by budget policies and culture.

The congressional watchdog also found that DoD labs struggle to balance incremental and disruptive development activities because the department does not evaluate the mix of its investments in these innovation areas.

Congress required DoD to create an undersecretary of defense for research and engineering by February 2018 to lead innovation policy development.

GAO said the position offers an opportunity to create policies that will encourage adoption of industry practices at the department.

DoD/News
Senate Panel OKs Boeing Vet Patrick Shanahan for Deputy Defense Secretary Role
by Jane Edwards
Published on June 30, 2017
Senate Panel OKs Boeing Vet Patrick Shanahan for Deputy Defense Secretary Role


Senate Panel OKs Boeing Vet Patrick Shanahan for Deputy Defense Secretary Role
Patrick Shanahan

Patrick Shanahan, senior vice president of supply chain and operations at Boeing, has been approved by the Senate Armed Services Committee to serve as deputy defense secretary, DoD Buzz reported Wednesday.

The panel sent Shanahan’s nomination to the full Senate floor through a voice vote Wednesday three months after President Donald Trump nominated him for the post.

The committee voted on his nomination after he stated his position on whether the U.S. government should supply lethal defensive equipment to Ukraine amid Russia’s aggression.

Shanahan will succeed Robert Work in the Defense Department role once approved by the full Senate.

The 30-year Boeing veteran previously served as VP and general manager of the aerospace company’s missile defense systems and rotorcraft systems segments.

DoD/News
Jens Stoltenberg: NATO Commits to Support Afghanistan Security Efforts Beyond 2017
by Scott Nicholas
Published on June 30, 2017
Jens Stoltenberg: NATO Commits to Support Afghanistan Security Efforts Beyond 2017


Jens Stoltenberg: NATO Commits to Support Afghanistan Security Efforts Beyond 2017
Jens Stoltenberg

Jens Stoltenberg, NATO secretary general, said that the alliance has committed to continue supporting Afghanistan and its forces through 2017 and beyond, DoD News reported Thursday.

The report noted that approximately 39 countries will collaborate to help boost security in Afghanistan through the delivery of funding assistance for Afghan security forces and the deployment of troops under the Resolute Support Mission.

NATO member states have planned to increase military spending in response to President Donald Trump’s recommendation for allies to spend more for national defense.

“We count on our Afghan partners to make good on their commitments, including: key reforms on good governance and the rule of law, fighting corruption and protecting the rights of women and girls,” said Stoltenberg.

Stoltenberg discussed the impact of burden-sharing at NATO summits in Wales and Warsaw wherein allies have agreed to spend two percent of gross domestic products on security technologies.

DoD/News
House Committee’s Fiscal 2018 NDAA to Create New Service Branch to Oversee Space Missions
by Jane Edwards
Published on June 30, 2017
House Committee’s Fiscal 2018 NDAA to Create New Service Branch to Oversee Space Missions


House Committee’s Fiscal 2018 NDAA to Create New Service Branch to Oversee Space MissionsThe House Armed Services Committee voted Wednesday on its version of fiscal 2018 defense policy bill that would establish a new military branch to oversee the U.S. Air Force’s space programs and missions, Federal News Radio reported Thursday.

Reps. Mike Rogers (R-Alabama) and Jim Cooper (D-Tennessee) introduced into the House panel’s National Defense Authorization Act a provision that would direct the Defense Department to form the U.S. Space Corps by January 2019 and order the Air Force secretary to manage the new organization.

The measure would also require the appointment of a Space Corps chief of staff and ask DoD to report to Congress in March and August 2018 on how it will establish the new military branch.

“We started working on it vigorously in September, and we’ve had countless meetings with a number of experts who have advised us as to how this should be construed,” Rogers said.

“This idea for a space corps as one of the solutions to Air Force space came from the Rumsfeld Commission in 2001,” he added.

Civilian/News
NGA Deputy Director Susan Gordon Nominated to Fill ODNI No. 2 Post
by Mary-Louise Hoffman
Published on June 30, 2017
NGA Deputy Director Susan Gordon Nominated to Fill ODNI No. 2 Post


NGA Deputy Director Susan Gordon Nominated to Fill ODNI No. 2 Post
Susan Gordon

President Donald Trump has nominated Susan Gordon, deputy director of the National Geospatial Intelligence Agency and a 25-year CIA veteran, to serve as principal deputy director at the Office of the Director of National Intelligence.

The White House announced Thursday it has sent her nomination to the Senate for consideration.

Before she joined NGA in 2015, Gordon concurrently served as director of the CIA’s Information Operations Center and senior cyber adviser to the CIA director.

Gordon began her CIA career in 1980 as an analyst within intelligence directorate’s office of scientific and weapons research and later she took on engineering development roles within the science and technology directorate.

She also previously led the creation of the spy agency’s venture capital arm In-Q-Tel and was the intelligence community’s focal point for biological research, development and engineering programs for collection and operations.

DoD/News
Senate Panel’s Defense Policy Bill to Authorize $1.2B for USAF Light Attack Aircraft Procurement
by Jane Edwards
Published on June 30, 2017
Senate Panel’s Defense Policy Bill to Authorize $1.2B for USAF Light Attack Aircraft Procurement


Senate Panel’s Defense Policy Bill to Authorize $1.2B for USAF Light Attack Aircraft ProcurementThe Senate Armed Services Committee’s defense policy bill for fiscal 2018 would provide the U.S. Air Force with $1.2 billion in funds to acquire a new light attack aircraft through the OA-X procurement program, Defense News reported Thursday.

The Senate panel approved its version of the 2018 National Defense Authorization Act through a unanimous vote Wednesday.

“The idea behind putting in funding is to actually move this program along,” a Senate aide told reporters Thursday.

“The best way to do that is to provide funding to get the program started.”

The Air Force plans to decide on the potential OA-X program once it conducts a flight demonstration in August at Holloman Air Force Base in New Mexico.

A team composed of Sierra Nevada and Embraer’s defense and security business will participate in the event to demonstrate the A-29 Super Tucano aircraft.

Textron will also showcase the Scorpion jet and AT-6 aircraft at the event, the report added.

News
FY 2018 NDAA Includes Many Reforms to DoD Acquisition; Will Allow Online Marketplace Purchases
by Barbara Boland
Published on June 29, 2017
FY 2018 NDAA Includes Many Reforms to DoD Acquisition; Will Allow Online Marketplace Purchases


FY 2018 NDAA Includes Many Reforms to DoD Acquisition; Will Allow Online Marketplace PurchasesThis year’s annual National Defense Authorization bill  (NDAA) contains many reforms to DoD’s purchasing system, including what is being hailed as the biggest change to acquisition in decades. The bill will allow DoD to purchase off-the-shelf products through online marketplaces like Amazon and Staples.

Currently the Defense Department has two options for purchasing: they can go through either the DoD contracting process, or the General Services Administration (GSA) schedule where prices are set.

Committee Chairman Mac Thornberry proposed that the Pentagon should be able to purchase commercial-off-the-shelf goods, ranging from bottled water to treadmills or even MRI machines outside the GSA, where prices are 13 percent higher than the open market, according to a recent GSA Inspector General report.

“A solution is obvious to most consumers – allow the government to use online commercial sites like Amazon, Staples, or Grainger just as businesses do,” a summary provided by the Chairman states. “These portals function like mini-marketplaces, ensuring that the buyer gets the best price without a lot of red tape. Using these portals has the added benefit of allowing DOD to track and analyze procurement data. Any business will tell you that this ‘spend analysis’ is critical to efficient operations. For the government, that kind of transparency and accountability would be revolutionary.”

Proponents of the reform argue that the portal will allow the Defense Department to act like a commercial buyer and take advantage of the lower prices available to them, as well as move the government away from specialty products and conditions when purchasing off-the-shelf goods.

Industry experts had mixed reactions to Thornberry’s reform. There are concerns about how it squares with the Competition in Contract Act, the Buy American Act, the Trade Agreements Act, as well as whether current Federal protections for small businesses would remain in place.

Nevertheless, Trey Hodgkins, a senior vice president at the IT Alliance for Public Sector, called the measure intriguing, reported Federal News Radio.

“We like the direction it’s taking, but we still have questions about how to make sure this is something that’s feasible and that people can effectively comply with it,” he said. “They do not list the bulk of the [Federal Acquisition Regulations], many of which are statutorily based. So what happens with all of those requirements when people are buying through this portal? Those are the things we’re still working the committee on for answers.”

Reforms that were also included in this year’s NDAA include a requirement that DoD submit detailed spending plans and budget for service contracts in the upcoming fiscal year to Congress, in the same way that is currently required for weapons systems.

The bill also reforms how DoD uses services requirement review boards (SRRBs), and discourages DoD from using bridge contracts. The bill includes provisions to enable DoD to better plan for and reduce long-term costs of its weapons systems.

Congress is looking to encourage long-term sustainment strategies that will lead to cost-savings, a senior congressional aide told Federal News Radio.

The bill, which passed out of committee Wednesday night, will be subject to a vote on the House floor.

 

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