Aerospace & Defense News - Defense North America

AirGuide Business, April 21, 2008

Apr 21, 2008

A group of scientists on Wednesday told lawmakers that a missile defense plan will not protect the U.S. from a real missile attack. However, George C. Marshall Institute President Jeff Kueter said the anti-missile program is making progress and will improve with further testing and research. Apr 18, 2008

A report released this month by the Aerospace Industries Association urges the White House to boost spending on efforts to modernize and recondition the military. AIA President Marion Blakey said the U.S. risks creating a "hollow force" if it does not increase the overall defense budget to pay for more weapons. The AIA called for a floor of 4% of GDP for defense spending. "What we have advocated here is a reasonable investment," Blakey said. "Historically, 4% is not a figure that in any way outdistances what this country can do, in good times and bad." Apr 18, 2008

Lawmakers may send the $108 billion fiscal 2008 defense supplemental spending to the White House before the elections in November. However, lawmakers are still at odds with the White House over off-budget requests, and Democrats have criticized the administration for cuts in non-defense spending. Apr 18, 2008

The Navy and Marines will purchase an undetermined number of 40-pound vertical-takeoff UAVs. The Scan Eagle is equipped with electro-optical infrared sensors capable of beaming images from 5,000 feet. Apr 18, 2008

Rep. Duncan Hunter, R-Calif., said he is concerned that defense secrets could be compromised as foreign companies increase investment in U.S. defense contractors. The decline of the dollar has prompted more international firms to invest in U.S. defense companies. However, Duncan said globalization of the industry remains inevitable. Apr 17, 2008

The VH-71 presidential replacement helicopter will be equipped with classified capabilities, including protection from electronic attack. It also includes an advanced communications system that will allow the president and cabinet members to talk to any government agency at any time. Apr 17, 2008

Lawmakers are likely to focus attention on foreign investors and multinational defense companies when debating the fiscal 2009 defense authorization bill, a reaction to a string of contracts recently awarded in part to European companies. A key question this year will be whether to seek additional oversight of the Pentagon's processes and entities tasked with ensuring the security of the U.S. defense industrial base and the technology that gives the American military an edge over other countries. Apr 16, 2008

Recently Defense Security Service has taken steps to address many of the issues raised in the GAO report, said Kathleen Watson, the DSS director. DSS is hiring additional specialists dealing with companies that have foreign owners, investors or control. There are 8,710 companies and 12,000 facilities that have been cleared for access to classified information. Half of DSS security personnel, about 350 people, work on industrial security cases, she said. But DSS also has a shortage of about 100 people, she said. DSS has a budget of $416 million for 2008. Watson reviewed the entire agency for the past year and has implemented a plan to address the critical problems. Apr 16, 2008

Some of the US Department of Defense's top defense contractors are foreign-owned companies, such as Airbus parent EADS, Rolls-Royce, BAE Systems, Thales, Alenia Aeronautica and Finmeccanica. These companies have invested significantly in U.S. firms, including acquisitions in the last few years of firms such as United Defense, which was bought by BAE Systems. Over the last several years, top defense contracts were awarded to some of these companies, including for Mine Resistant Ambush Protected vehicles, the new presidential helicopter, the Joint Cargo Aircraft, engines for the Joint Strike Fighter and, most recently, the Air Forceis new refueling tanker contract. In most of these cases, the firms partnered with large U.S. contractors. Apr 16, 2008

The Department of Defense is the executive agent for the program, which spans across other federal agencies. More specifically, the Defense Security Service (DSS) is the primary agency for implementation of NISP not only at the Pentagon but also for 23 other federal agencies. The growth of foreign investments in the U.S. could present a serious challenge for DSS, which has gone through organizational turmoil recently in a much-publicized breakdown regarding its handling of security clearance for contractor personnel. That function has now been outsourced to the Office of Management and Budget. Apr 16, 2008

The Government Accountability Office (GAO) several years ago found that Defense Security Service does not have sufficient oversight to reduce the risk of foreign interests gaining unauthorized access to U.S. classified information. Testifying in front of the House panel, GAOis Ann Calvaresi-Barr on Wednesday said that the security personnel have difficulty navigating through the intricacies of ownership. According to GAO, DSS does not collect and track the extent to which classified information is accessible to a contractor before measures are taken to reduce the risk of unauthorized foreign access. For instance, contractors may have had access to classified information for months before any protected measures were implemented. Apr 16, 2008