Resupplying combat troops in Afghanistan is a dangerous, slow and increasingly expensive undertaking.  Moving a truck filled with supplies 50 miles could require as many as 100 Marines, most of them to provide security, and take about 24 hours, according to DefenseNews.

Of course, it’s a lot faster to deliver supplies by helicopter, but that costs almost $10,000 per hour and puts airmen and helicopters at risk.  Airdrops by fixed-wing aircraft are safer, but much less accurate and just as expensive.

What’s a soldier to do? Employ UAVs, say Lockheed Martin, Northrop Grumman and Sikorsky.

Each firm is developing an unmanned supply helicopter that would reduce the cost of ferrying supplies to ground troops in combat zones and reduce our troops’ exposure to deadly improvised explosive devices (IEDs) and ambushes.

Lockheed Martin and partner Kaman Aerospace are working on an unmanned version of the Kaman K-MAX helicopter that is designed to carry up to 6,000 pounds, fly to a delivery point, unload and fly back, all without intervention by a human and at a cost of about $1,100 an hour.  In tests, the K-MAX hovered at 12,000 feet with a 1,500-pound load slung beneath, completed two 175-mile round trips to deliver 3,000 pounds of cargo in less than six hours, changed missions mid-flight and delivered four 750-pound loads to four different destinations (three autonomously and the fourth one under operator control).

Northrop Grumman is working on adapting its 3,150-pound Fire Scout, originally designed as a vertical take-off and landing reconnaissance UAV for Navy ships, to carry up to 600 pounds of supplies in cargo containers mounted on its skids.

Like the K-MAX, the Fire Scout can fly autonomously or respond to instructions from an operator on the ground using GPS for navigation, but unlike the K-MAX, the pilotless Fire Scout doesn’t fly blind. Using advanced sensors, the Fire Scout can observe the landing zone it is approaching to ensure that it’s free of obstacles and people before touching down.  Sensors on the Fire Scout’s skids also detect contact with the ground and automatically detach the cargo containers, enabling the Fire Scout to take off again more quickly.

Finally, helicopter manufacturer Sikorsky announced last month that it is spending $1 billion to develop a unmanned version the Black Hawk, the military’s workhorse helicopter. Analysts expect the unmanned H-60 to be demonstrated this year and could be in service by 2015.

Senator Olmypia Snowe (R-ME)

Senator Olympia Snowe (R-ME) was critical of the cyber coordinator’s placement in the executive branch on Tuesday.

The OPM is crowd-sourcing an online tool to recruit managers.

The open government ball kept on rolling.

By Light and InZero are teaming up to fight cyber attacks.

Melissa Hathaway joined Core Security Technologies’ Advisory Board.

Donna Morea and George Schindler were honored by the Cystic Fibrosis foundation for CGI’s charity work.

Larry Prior and Kevin Phillips talked about ManTech’s robust growth.

Lockheed Martin snagged a PBL deal from the Army.

By now you’ve had your fill of top 10 lists for 2010. But this is one list you don’t want to miss. What will 2010 hold for Government Contracting? What shape will collaboration take between industry and government in addressing the tough issues of the day? ExecutiveBiz brought that question to top industry leaders. Here’s what they’re saying:

1.) Industry More Competitor with Government

Norm Augustine’s 2010 Prediction:

“The issues facing the nation and the world increasingly transcend the ability of either government or industry to solve alone. For example, the government clearly has overall responsibility for homeland security, yet 90 percent of the assets to be protected currently reside in the private sector.

“At the same time, as the federal debt grows along with the non-discretionary part of the federal budget, heightening fiscal pressures will be placed on the procurement process. As a consequence, industry is unfortunately likely to find itself more and more a competitor with government than a partner … with proven bad ideas rising from the ashes yet another time (e.g., fixed price research and development contracting).  The problem will be exacerbated by the inability/unwillingness of qualified individuals with industry experience to serve terms in government.

“As one who has spent a significant part of his professional life in each government and industry, I truly hope the above is wrong but that would not be how I would bet.”

(Norm Augustine is retired Chairman and CEO, Lockheed Martin Corp.)

2.) More Contracts related to the ‘Battlefield of the Future’

Paul Cofoni’s 2010 Prediction:

“CACI expects intelligence to be a mainstay of growth in 2010 and beyond. In addition, CACI is bidding for millions of dollars in cyber security contracts, as awareness of this kind of threat grows. C4ISR technology is also one of CACI’s strengths, and the company expects to see more contracts related to the ‘battlefield of the future,’ helping to guide and protect the warfighter and target the enemy on the battlefield.

“Going forward, our domestic operations are solidly positioned in the well-funded and high-priority areas of defense, intelligence, homeland security, and IT modernization. We remain agile in responding to market changes and aligned with the administration’s priorities in cyber security, smart power, and IT modernization.

“Many experts predict that non-defense government spending will grow faster than defense spending in coming years, and government contractors can meet those demands by offering new services in sectors like healthcare logistics, energy IT and IT modernization. Still, national security remains at the top of our government’s greatest challenges, and we will continue to concentrate our resources to help our clients preserve the freedom and liberty of our nation’s citizens while expanding to meet new areas of demand.

“National security remains at the top of our government’s greatest challenges, and we will continue to concentrate our resources to help our government and our clients preserve the freedom and liberty of our nation’s citizens. Even with multiple domestic issues facing our country, we cannot lose sight of ever-increasing threats from determined, persistent, and well-resourced terrorist organizations. There is no margin for error in our national security posture.

“Our recent record results for both the quarter and the year validate our strategy to focus our solutions in the well-funded and critical areas of defense, intelligence, homeland security, and IT modernization. strong performance in CACI’s U.S. operations.

“We anticipate continued demand for our proven solutions to keep our nation safe and implement efficient and cost-effective solutions to modernize federal agencies. We are positioned to expand our capabilities in defense healthcare logistics and IT modernization and address new opportunities in cyber security, smart power, and energy. We also expect to see continued growth in our highly profitable U.K. operations, including greater penetration into the public sector.”

(Paul Cofoni is President and CEO, CACI)

3.) Government-Industry Collaboration will be robust

Renny DiPentima’s 2010 Prediction:

“Government contracting will continue to be robust over the next decade, just as it has been over the previous five decades. A responsible and collaborative business relationship between government and industry benefits both. Government depends upon contractors in large part to get its jobs done and contractors depend upon government to keep their companies financially sound. This government-contractor relationship, more than ever, will depend upon mutual respect and trust and performance from both parties that delivers results.

“Effective, responsive collaboration [between government and industry] will require a clear understanding and expression of requirements on the part of government, effective and efficient solutions from industry that deliver results, and a working relationship based on trust and respect on the part of both. The collaboration must be characterized as a constant flow of communications between both government and industry at all phases of their work, from pre-solicitation exchange of ideas, to appropriate dialogue to truly understand the government’s requirements, to a clear articulation and demonstration of the solutions proposed by industry. Collaboration based on open communications, trust, and respect is essential to the success of solving any of the tough issues ahead.”

(Renny DiPentima is former president and CEO of SRA)

4.) Business Models Must Accommodate More For Less

Jacques Gansler’s 2010 Prediction:

“I think the key point of the next decade is going to be the budget crunch combined with, from the defense side, the huge spectrum of potential concerns on the security basis: pirates, terrorism, regional conflict, insurgence, possible future peer competitors, nuclear deterrence and that whole huge spectrum. In that environment we have to figure out ways to get more for less … and the models for getting more for less changes the business environment.”

(Jacques Gansler, former Under Secretary of Defense for Acquisition, Technology, and Logistics, is now a professor at the University of Maryland’s School of Public Affairs.)

5.) Government Will Expect More Secure Offerings from Industry

Melissa Hathaway’s 2010 Prediction:

“The need for partnership between industry and government will increase over the next decade especially as our enterprises become further interconnected due to our dependence on information technology. The seams between private networks and government networks will continue to blur and it will be harder to know where one ends and the other begins.

“We must work to understand the full extent of the vulnerabilities and interdependencies of our enterprises because our opponents are exploiting these seams and stealing our sensitive and proprietary information at an unprecedented volume. This requires industry and government to share details on vulnerabilities of and security threats to our infrastructures and information assets. Industry will need to provide a stronger service offering of security testing of networks to lower our collective exposure. Additionally, I expect that the government will demand from industry more secure software products and services. I am hopeful that the next decade will bring greater transparency and willingness to share information among and between enterprises so that, in partnership, we can raise our collective security posture.”

(Melissa Hathaway is President of Hathaway Global Strategies, LLC and Senior Advisor at Harvard Kennedy School’s Belfer Center)

6.) Another Year of Confidence Re-Building

Bill Hoover’s 2010 Prediction:

“2010 will be another year of caution and confidence rebuilding. Concerns about the deficit will influence both the government’s and citizens’ priorities and actions. National security and citizen safety remain the top priorities of government. Government services sector will continue to be the nation’s ‘anchor to windward.’”

(Bill Hoover is President and CEO of AMERICAN SYSTEMS)

7.) Year of Positive Trends and Challenges Ahead

Linda Mills’ 2010 Prediction:

“Government contracting is seeing some very positive trends and some challenges that the industry and government together will have to work to overcome in the next decade. Some of the positives we are seeing in legislative and policy trends include increased use of IDIQ contracts, Secretary Gates push towards 75 percent solutions, and spiral developments. At the same time, however, industry continues to face a move toward fixed price development contracts, long procurement cycles, continued protests, and insourcing.

“Northrop Grumman acted quickly and responsibly to comply with another positive trend, the tightening of the OCI policy. The key to go-forward success is consistent and clear communication with the contracting community and consistent application of these policies across government. Going into the new decade, we expect the government will uniformly enforce these new OCI regulations.

“Collaboration between government and industry will remain important in the next decade. Most tough issues require government legislative and policy changes before real progress can occur.”

(Linda Mills is Corporate Vice President and President, Northrop Grumman Information Systems)

8.) Cyber Czar, Bid Protests Key Issues to Watch

Stan Sloane’s 2010 Prediction:

“The new cyber czar will start to grapple with the challenges he’s taking on, and we’ll see some progress on the policy front, as well as collaboration with industry on intellectual property protection.

“There will be growing dissatisfaction with the bid protest mess, and we will start to see reform in the way of penalties for companies which abuse the process.
(May be a wish versus a prediction!)

(STAN SLOANE is President and CEO of SRA)

9.) Year of Modest Growth, Productivity Gains for GovCon Sector

Ralph Shrader’s 2010 Prediction:

“I’m cautiously optimistic that 2010 will be a year of modest growth and productivity gains for the economy as a whole, and for the government contracting sector. The most important challenges of the 21st century are the business of government — from national defense and economic security — to health, citizen services, and international development. While government officials clearly need to set policy, be in command, and carry out inherently governmental functions, the biggest challenges can’t be solved by government alone, so collaboration with industry is critical. Industry teammates bring innovation, specialized expertise, and value that helps win the peace and prosperity that citizens want and expect from government.

“Collaboration begins with respect. Government contractors must recognize that the mission of our nation and acceptance of taxpayer dollars is a sacred trust. The government, in turn, needs to respect the real value and patriotic commitment of the contractor community. Industry and government are on the same team, facing the same challenges, working toward the same goals. If all sides can embrace this point of view, the year and decade ahead will be among the most successful in history.”

(Ralph Shrader is Chairman, CEO, and President, Booz Allen Hamilton)

10.) Time for Fundamental Review is Now

David Walker’s 2010 Prediction:

“The federal government needs to engage in a fundamental review and re-engineering of what it does, how it does business and who does its business in the coming decade. This includes the need to address the 15 or so long standing and systemic acquisition and contracting challenges identified by the GAO. Successfully addressing these challenges will benefit both the country and taxpayers.”

(David Walker is president and CEO of the Peter G. Peterson Foundation)

When you hear “transparency,” what’s the first thing that comes to mind? For many CFOs, it’s transparency with government regulators and customers. Of less focus is organizational transparency. That’s a shame — especially these days, says Kathy Kerchner, CFO of Lockheed Martin Enterprise Business Services.

At a time when budget pressures are augmenting a focus on affordability for many CFOs, looking within an organization is critical to spotting additional ways to reduce costs and doing more with less, she says. That’s what Kerchner did when she stepped into her role in July 2008; she and her team quickly set out to identify redundancies among internal customers that use the company’s IT and financial shared services. That move has, in turn, helped contribute to the bottom line of each P&L business areas at Lockheed Martin. Here, Kerchner debriefs on a campaign successfully waged, and how other CFOs can do the same within their own shared services organizations.

With 2010 around the corner, a must-read for any CFO.

Fast facts:

• Kerchner has held various positions within Lockheed Martin over the past 28 years, primarily within P&L organizations.

• Now on the “cost center” side, Kerchner serves as CFO of Lockheed Martin Enterprise Business Services, which provides infrastructure services to virtually all of Lockheed Martin’s 140,000 employees.

• Assuming her role in July 2008, Kerchner has led efforts to increase transparency to maximize the visibility of the cost of services among internal customers.

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“Some opportunities to drive cost efficiencies in a budget-constrained world are right under our nose.”
— Kathy Kerchner, EBS, Lockheed Martin

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Read the rest of this entry »

When it comes to government contracting, women have arrived. Look at any major government contractor, and the proof’s in their executive ranks. But that ascent hasn’t come easily. It’s involved its share of hard work, of course, as well as the task of balancing other life pursuits. Recently, ExecutiveBiz asked some of the Washington, D.C., area’s top women executives one simple question: How’d you do it? Here, in their own words, they offer tips and insights about how they’re contributing to an industry they describe as ever-changing and exciting, and how others — regardless of gender or background — can do the same.

Teresa Carlson, vice president of Microsoft’s US federal government business: “I think women were always here. We didn’t have to arrive. The reality now is we’re taking the driver’s seat much more and taking on bigger and bigger challenges.” Read more >>

Cheryl Janey, vice president of operations, Northrop Grumman’s information systems sector’s civil systems division: “Being a female leader in government contracting is exciting. We’ve seen more and more females coming in on both the contractor’s and government’s side who have so much to contribute.” Read more >>

Judy Marks, vice president of strategy and business development for Lockheed Martin’s Electronic Systems business: “The whole federal contracting world offers everyone opportunities for leadership and contributions. There are so many talented people coming off today’s campuses. I’m encouraged and I’m excited.” Read more >>

Stacy Mendler, COO, Alion: “I really think the industry has changed and companies want women to perform and take on higher level positions. Companies want women to succeed and help drive growth.” Read more >>

Suzan Zimmerman, senior vice president of corporate development, QinetiQ North America: “The only glass ceiling is the one you put over your head. If you work hard, and people know you’re interested in what you’re doing, there is no glass ceiling.” Read more >>

JUDY MARKS

Judy Marks negotiates for a living. She has ever since she began her career as an engineer, then a program manager, capture executive, and later, president of two Lockheed Martin divisions. This past February, Marks became vice president of strategy and business development for Lockheed Martin’s Electronic Systems business. It was a “fascinating time” to have taken the reins, she says. A new administration was ushering in a changing acquisition system, then came Defense Secretary Robert Gates’ announcement of shifts in budgetary spending. Throughout 2009, Marks has led the business’ portfolio to meet the demands of global security customers. She’s met with customers to understand their needs, and has driven competitive wins for new business opportunities.

Marks’ Top Tips:

• Follow through. “When you make a commitment, you need to follow through,” says Marks, “because no one will remember the 10,000 commitments you made for the one you’ve missed.”

• Surround yourself with talent. “That talent shouldn’t mimic you,” says Marks. “You want alternate approaches to solving problems, which is really what we do in government contracting.”

• Apply the best in others. “If you see a leadership trait you admire strive to bring that into your own portfolio,” says Marks. “Conversely, if you witness a trait you’re not excited about, make sure you don’t repeat it.”

• Block off time. “I would encourage everyone to block some time to think and strategize about what’s over the horizon, because that will give you a competitive advantage,” says Marks.

What Marks is saying:

ON GAINING A COMPETITIVE EDGE: “I spend a lot of time on airplanes, averaging one to two days a week most of my career. I use that time to brainstorm: ‘What is my competitor doing three steps ahead? What markets should I be entering? What trends are new in the world? What trends are evolving? Which are revolutionary or evolutionary? How will that impact my business, and how will that impact our shareholders and our employees?’”

INDUSTRY’S FUTURE: “We all have a responsibility to develop the next generation of leaders rising behind us, whether male or female. We have a formal mentoring program, I’ll give pretty much anyone in this company who requests it an hour of my time to have a discussion. I will listen to them, and if they would like some advice, I will give them that.”

WORK-LIFE BALANCE: “You have to define what’s normal for you. For me, my wonderful spouse, and daughter, we led a life that was normal for us. My being away one night a week was normal for us. Did I miss some things? You bet. Do I regret it? I really don’t because I accepted I wasn’t going to make every school activity. Could it bother other people? Perhaps. If it does, they should set their aspirations a little differently.”

BEST CAREER ADVICE: “The best advice I ever got is to have fun at what you do or else go do something else. I look forward to going to work every day. It’s not to say every day is fun — or that there aren’t challenges — but I thoroughly enjoy what I do. I enjoy leading others. I enjoy being able to set strategy. I enjoy having an impact on the future of a lot of people around me.”

WHAT’S AHEAD: “I spend a large amount of time with customers both domestically and internationally. The global security needs are just as strong and demanding as they were in previous years. I’ve had the opportunity to shape some of our strategies and actually implement them. More importantly, I’ve had the opportunity to listen to customers and understand what their needs are five to 10 years out.”

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Here’s a re-cap of a few executive transitions since early June: Larry Prior moved to ManTech, Walt Havenstein moved to SAIC, and Tony Zinni moved to BAE.  In his first interview since taking office, Larry Prior talked about his top priorities and how he’s furthering ManTech’s position as an ‘essential partner’ in cyber and national security. Here are some

Larry Prior

highlights:

• “Systems engineering and technical assistance as well as mission support, for example, require lots of experience and core technical talent. That’s a great opportunity for industry.”
• “Government needs to re-badge. It needs to bring talent in that does planning, budgeting, source selection, and acquisition management. They need to make sure, however, they can also execute on missions across every agency.”
• “Cyber is a wonderful opportunity for us to expand our business…we’re focused on several questions: How do we help defend networks that aren’t in our typical space? How do we help improve network resiliency everywhere we go?“

Jim Moran on Cyber Threats

Congressman Jim Moran

spoke with Congressman Jim Moran on the subject recently, and here are the highlights:

• “…there should always be a constructive tension between the private and public sectors.  We tipped that balance in the last few years by outsourcing inherently governmental work, in my opinion.  That’s why I support Secretary Gates’ effort to establish 20,000 more acquisition personnel as an example…”
• “On the whole I’d have to say there is a relatively negative attitude towards contractors and we are working every day to improve that image and to try to discourage the kinds of activities and rhetoric that underscore people’s negative feelings towards contactors. It is a two way street.”
• “We need to march forward and not be intimidated by… Cyber Attacks.”
• “…it behooves the IT contractors particularly to work with my office and with Gerry Connolly’s and Steny Hoyer’s, people who represent large IT defense workforces.  The more participation and contact we have, the better results we get for all concerned..”

Melissa Hathaway Resigns

Melissa Hathaway

Melissa Hathaway, Top 10 Beltway Game Changer to Watch in ‘09, resigned her post as current acting Senior Director of Cyberspace for the National Security and Homeland Security Councils.  Ms. Hathaway recused herself from consideration for the position of Cyber Czar two weeks ago, citing personal reasons.  She intends to continue her work in the interest of national cybersecurity in the private sector.

Hacker Conference Hacked by Spies

Jeff Moss, prominent hacker, founder of the BlackHat hacker organization, and member of the DHS advisory board on cybersecurity, hosted his annual DEFCON hacker convention in Las Vegas this week.  But when four “South Korean journalists’”  interviews did not cover normal topics for the conference, the four were escorted out of the conference. In fact, the Korean visitors were “intelligence gathering” individuals: spies. The incident comes after the July 4th distributed denial of service attacks (DDoS) on U.S. and South Korean government and private computer networks.

India Emerges as GovCon Market

No, this isn’t about outsourcing IT solutions to India, but rather selling DoD and military services to India. India’s defense budget for fiscal ‘09-10 will increase by almost 35%, in an effort to modernize its mostly Soviet-era materiel.  India will spend over $30 billion a year on defense for the next five years, and American defense contractors are leading the charge to strengthen America’s strongest and most populous ally in South Asia:

• Raytheon has secured $82 million in contracts to modernize India’s air navigation systems
• Lockheed has completed delivery of six C-130J aircraft for $1.1 billion and is negotiating the sale of another six for $1.1 billion next year.

It seems like American money is making a round-trip, jetting to India through outsourced jobs and coming right back through defense contracting dollars (or rupees).