Defense- & Dual-Use Technologies Edition

More cancelled modernization projects and more bureaucracy

Defense and dual-use texhnologies

Oct 18, 2024

Good morning,

The Army has canceled its third modernization priority effort, the Lower-Tier Future Interceptor. The LTFI joins the Future Attack Reconnaissance Aircraft (FARA) and the Extended Range Cannon Artillery (ERCA) in the scrapheap. These programs are part of the Army's '31+4' modernization priorities that it established in 2017, and their cancellation recognizes specific challenges in building a future force: namely cost overruns (LTFI), obsolescence (FARA), and technical challenges (ERCA). The FARA and ERCA programs can be made up for in continued investment in long-range, one-way attack drones and advanced missiles (especially a low-cost cruise missile, that nobody is building--not even Anduril). The justification for cancelling LTFI was cost. That's fair. Instead, the Army is choosing to invest more into the legacy Patriot system, buying additional Patriot Advanced Capability Increment 3 (PAC-3) missiles. Each missile costs an estimated $4M and it should be noted that the Army awarded a $4.5B contract to Lockheed Martin in June for a multiyear buy of more of them. According to the Army's budget materials, it looks like this cancellation could save around $40.9M in combined, planned RDT&E expenditures--a mere drop in the bucket (<1%) when compared to the PAC-3 contract.

Doug Beck and Jason Rathje must be concerned about the DoD's inability to get out of its own way. Last week, the Pentagon stood up the Transition Tracking Action Group to 'improve the department's ability to track transitions from the initial stages of R&D to fielded capabilities in the hands of the warfighters.' That sounds nearly indistinguishable from the DIU's role, except that while Beck--the DIU Director--reports directly to SECDEF, this new organization will answer to the Undersecretary for Research & Engineering. Now, Rathje, the director of the Office of Strategic Capital, does work for the Undersecretary, but his role focuses on attracting and scaling private capital in support of national security objectives. The OSC also issues loans and provides loan guarantees for critical technology investments. But what does that have to do with the TTAG? The DoD has stated that this new group will 'better align investments with strategic objectives.' That's what Rathje is already doing. So, we're left scratching our heads why the Pentagon felt the need for a new group that duplicates efforts of two of the DoD's most successful efforts in the past twenty years. Is the USD(R&E) making a power grab? Does she not see the value of the existing organizational frameworks? Or is this just a case of bureaucracy existing to beget bureaucracy?

Our suspicion (and hope) is that it’s the last option, but we don't know.

We maintain high conviction in Beck, Rathje, their teams, and their work. Unfortunately, the best that BoF can offer to either at this time is to send them some of the sick swag we're putting together for our soon-to-open merch store.

This update is going to be Army-heavy due to this week's AUSA event.

Now, let’s go!

News Headlines:

German spy chief: Putin bent on 'testing west's red lines', will be prepared for conflict with NATO by 2030 (BBG)
Russian sabotage is escalating risk of greater conflict in Europe: Army General says (S&S)
Moscow and Beijing announce further cooperation during international group meeting in Pakistan (AP)
Airbus will cut up to 2.5k jobs in defense and space (RT) )

Defense & Dual-Use Technologies

Pentagon launches new group to accelerate innovation and track tech transitions for warfighters (HST)
Army Chief reveals plan to modernize the force (DN)
Gulf countries beef up their undersea-warfare chops with European tech (DN)
Army planning 2025 prototyping activity for next-gen C2 effort (DS)
Army scraps effort on next-gen missile interceptor (DN)
PEO-Soldier releases list of tech it's pursuing for soldiers (DN)
Chinese researchers find that 8% Yttria-Stabilized Zirconia could be more effective stealth coating (SD)
Russia is likely reverse engineering a captured, German Leopard 2 tank (DN)
DOD releases final rule for cybersecurity requirements, setting the stage for implementation next year (DS)
Army accelerates development of Launched Effects (DN)
The military has to relearn how to fight 'dirty' to survive future wars (DN)
Joint experimentation event, Project Convergence, will head to the IndoPacific next year in first (DN)
Army inches closer to 3D-printing spare parts under fire (DN)
Army mulls testing missile defense prototypes forward in theater (DN)
Army looking to provide commanders more flexibility with networking and comms gear (DS)
Army seeks new space capabilities for the 'tactical edge' (ASF)
Services are pushing unmanned boat technology int eh face of contested logistics (DN)
Navy reloads cruiser's missiles at sea for first time (MT)
Leonardo, BlueHalo demo counter-drone system on Army Stryker (DN)
Leonardo debuts drone-mounted jammer to bamboozle air threats (DN)
Italy's Avio expands to fill U.S. Army solid rocket motor orders (DN)
RTX will pay nearly $1Bn to U.S. Gov't to resolve bribery, fraud claims (RT)

Autonomous Systems

OpenAi unveils experimental 'Swarm' framework, igniting debate on AI-driven automation (VB)
AUKUS partners test ability to control ships from 10,000 miles away (TDP)
RedCat ships Teal-2 drones to Florida National Guard to assist with Milton disaster response (sN)

Deal Flow:

Florien Seibel's new defensetech company Stark Defense raised a $15M Series A from Sequoia to produce loitering munitions (BBG)
Paladin, a drone-as-first-responder solution provider, raised $5.2M in seed funding led by Gradient (TC)
$1.1B-listed aircraft parts maker Triumph is exploring options including a sale (BBG)
Flock Safety acquired Aerodome, LA-based drone-as-first-responder technology developer for an undisclosed amount (DL)
Struggling Boeing plans to raise up to $35B in a bond and share issuance (RT)

Opportunities

Army DEVCOM is seeking cutting-edge solutison for multimodal human-machine interfaces for fast, accurate, and intuitive control of mixed reality (XR) and robotic autonomous systems (RAS) (SAM)