Jason Gayl

Great news and summary here from NCEO on the final rule for allowing some ability for ESOPs to garner priority with DOD contracts. Wondering if anyone out there in this space knows or can speculate on whether this would allow companies who acquired a contract (say 8(a) or minority/women/veteran owned) to then maintain ability to win the follow-on contract if they transition to an ESOP during that different status stage? #ESOP

21

This week in Defense Tech: 1️⃣ Pentagon announces new reciprocity guidance to streamline software adaptation. “We’ve heard you loud and clear on this within the DoD. I’m not going to say this is going to solve every bit of it, but it’s going to help us a bit,” Office of the DoD Chief Information Officer John Sherman said. 2️⃣ United States Department of Defense surpasses $600M in JWCC task order awards. Google, Oracle, Amazon Web Services (AWS) and Microsoft compete for task orders under the Joint Warfighting Cloud Capability enterprise cloud program. 3️⃣ The Defense Information Systems Agency has launched a new cloud service management platform called Olympus to help defense agencies develop and mature their cloud environments. 4️⃣ Switchblade 600 drones in the running for Replicator mass production. With a 24-mile range, 40 minutes of loitering endurance and the ability to fly at speeds of up to 115 miles per hour, Switchblade 600s are built to destroy armored vehicles and other targets in multi-domain military operations. 5️⃣ Embracing and incentivizing digital methods in design and manufacturing can help the U.S. match or outpace its adversaries, a new report from the Mitchell Institute for Aerospace Studies argues—and top Pentagon and industry officials say they are working to do just that. 6️⃣ The Wall Street Journal covers how America is getting ready for space warfare. Pentagon officials open up about potential threats as China’s presence in orbit grows and Russia shows interest in gear that can destroy satellites. 7️⃣ United States Space Force is getting a cloud-based, classified environment for industry collaborations. The Space Force recently extended General Dynamics Information Technology's contract to expand Project Enigma, adding more stakeholders and cloud service providers to the digital environment. 8️⃣ US Army lays out strategy for new $1B contract vehicle for modern software development. The service is seeking feedback from industry. 9️⃣ Losing hearts and minds: The desperate state of US influence operations. The United States is surrendering ground to Russia and China’s propaganda machines. That has key officials increasingly worried. 🔟 Anduril Industries is building out the Pentagon’s dream of deadly drone swarms. The US military aims to maintain its dominance by building autonomous attack drones that collaborate with humans and overwhelm defenses in swarms. 🔗 Links in comments below 👇 #DoD #DHS #defenseinnovation #defense #defensetechnology #technology #tech #nationalsecurity #jadc2 #army #navy #airforce

13

12 Comments

Thank you Samuel Byers and the Center for Maritime Strategy for publishing my most recent article in The MOC. With last nights election results in, now we must ALL focus our attention towards the multi-theater threat facing the nation by the Axis of Authoritarianism (China, Russia, Iran) and their regional allies. The new Congress should pass a Defense Appropriation Bill that aligns with Sen. Roger Wicker's plan to increase defense spending by $55 billion in the FY25 defense budget, with a gradual increase to 5 percent of GDP over the next 5-7 years. This appropriations is essential in funding the Congressional Guidance for a National Maritime Strategy, that has garnered bi-partisan and bi-cameral support in Congress. Sen. Wicker's Plan: https://lnkd.in/eYpsg_3i Congressional Guidance for a National Maritime Strategy: https://lnkd.in/eipacY4A #industrialbase #defensebudget #usnavy

15

2 Comments

Today, we honor the extraordinary contributions of over 200,000 defense financial professionals in both the public and private sectors who work tirelessly to ensure the integrity and accountability of nearly one trillion dollars in appropriated funds each year. As the backbone of the defense sector, these dedicated professionals, represented by the Society of Defense Financial Management (SDFM), manage a wide range of responsibilities from #budgeting and #auditing to #internalcontrols and #dataanalytics. Their work is critical to maintaining the financial health and mission readiness of our nation’s defense, ensuring every dollar is managed with precision and in full compliance with the law. Since 1948, SDFM has led the charge in advancing defense financial management by promoting education, training, and certification for the workforce. With over 14,000 individual members, 80 corporate members, and 105 chapters worldwide, SDFM continues to drive innovation and uphold the highest ethical standards in this essential profession. Join me in celebrating the incredible work of these professionals today and every day, as they safeguard the financial integrity that supports our national security. #SDFM #CDFM #NationalDefenseFinancialManagersDay #Military #Defense #FinancialManagement #DefenseFinancialManagement #FinancialStewardship #NationalSecurity

31

📰 🥁 Today's #CrossingTheValley features David Brown, the CEO of CounterCraft​​ ! In our conversation, we delve into the world of digital security, deception, and scaling a successful tech company in the defense industry. Here are three takeaways from my conversation with David 🚀🚀🚀: 1. Making Deception Easy Imagine WANTING to make it easy for organizations to deceive. When is that a good thing? David harkens back to World War II to emphasize how deception - in the physical and digital realms - is a crucial part of national (and corporate) defense. Countercraft's platform, aptly named "The Platform," simplifies the deployment of deception environments, enabling organizations to protect their valuable assets from cyber threats. 2. Don't Go Direct! CounterCraft's success was propelled by strategic partnerships. By focusing on developing a great product and educating users on its benefits, CounterCraft leverages partners for installation, support, and delivery services. This approach allows the company to scale efficiently and meet the diverse needs of its customers, both in the commercial and government sectors. 3. Iterate, Iterate, Iterate A key theme throughout the conversation was the importance of listening to the voice of the customer. David emphasized the need to understand and fulfill customer requirements, ultimately making it easy for them to consume the technology. By prioritizing customer feedback and adapting to their needs, CounterCraft has been able to build credibility, drive growth, and ensure long-term success. Check out the full episode at ValleyCrossers (dot) com or at frontdoordefense (dot) substack (dot) com #Cybersecurity #Partnerships #PodcastEpisode

15

3 Comments

Everywhere I look, discussions on small business technology development, government funding, and private capital are abundant. Not all of them are useful, and many appear self-serving. The SVDG NATSEC100 from Silicon Valley Defense Group stands out for offering a valuable snapshot of a successful ecosystem overcoming challenges in growing national security and defense companies. I share this information as I assist small businesses in leveraging their technologies to support the Warfighter. If you are also involved in this space, spreading news like this within your community is crucial. The world may be widely connected, but we can still be narrowly focused, making the sharing of good news all the more important. #SmallBusiness #TechnologyDevelopment #NationalSecurity #DefenseCompanies

2

Attention #Startup #Entrepreneur The Office of Strategic Capital (OSC) will finance companies' equipment needs to help them scale production in the 31 covered technology categories identified as promising critical technologies and assets in the National Defense Authorization Act for Fiscal Year 2024 (FY24 NDAA). By setting forth eligibility requirements and the application process, the NOFA ensures that companies are fully prepared to apply for OSC financing. 31 Covered Technology Areas: - Advanced bulk materials; - Advanced #manufacturing; - #Autonomous mobile robots; - #Battery storage; - #Biochemicals; - #Bioenergetics; - #Biomass; - #Cybersecurity; #Cyber - #Data fabric; - Decision science; - #Edge computing; - External communication; - #Hydrogen generation and storage; - #Mesh networks; - #Microelectronics assembly, testing, or packaging; - Microelectronics design and development; - Microelectronics fabrication; - Microelectronics manufacturing equipment; - Microelectronics materials; - #Nanomaterials and metamaterials; - Open #RAN; - #Optical communications; - #Sensor hardware; - #Solar; - #Space launch; - #Spacecraft; - Space-enabled services and equipment; - Synthetic biology; - #Quantum computing; - Quantum security; and - Quantum sensing. #Fundraising #smallbusiness #Defense #Innovation #opportunity

10

1 Comment

🛑 Be proactive and vigilant when it comes to export controls. Whether in-house or outsourced, large billion $ company or smaller defense exporter, get the best eyes on your procedures and records. Hit with violation? Call us. Our The Summit Group DC Global Trade Partners are the best in the business. Please don't delay, get in touch [email protected] to set up a call. #exportcontrols #ITAR #EAR #recordkeeping #tradecontrols #internalcontrols #globaltrade #managementcontrols #TSFD #techsecurity #foreigndisclosure #bestpractices #training #mockaudits #preaudit https://lnkd.in/et_JzhEf

14

1 Comment

This article is a compelling read at the intersection of corporate finance, defense financial management, and national security. The recent U.S. Securities and Exchange Commission charges against Austal USA for accounting fraud underscore a critical issue that resonates across domains: the essential need for unwavering financial integrity. In the defense sector, financial management goes beyond maintaining profitability; it's about ensuring that every dollar is accounted for and spent efficiently to support national security. When financial management fails in this area, it risks more than just the bottom line—it can erode public trust and jeopardize military readiness. Transparency, accountability, and ethical financial practices are non-negotiable, no matter the industry. We must continually learn from such cases to strengthen our own practices and contribute to a more transparent and responsible financial ecosystem. Let's take this opportunity to reflect on our own processes and ensure that we uphold the highest standards of financial management, whether we're managing budgets in the boardroom or on the battlefield. #financialmanagement #nationalsecurity #financialintegrity #governance #SDFM #military #defense #defensecontracting #govcon #corporatefinance

42

Join me in July for our two half day workshop discussing what your ITAR Compliance Program should look like..

6

"There are several tech “strategies” we have seen successfully deployed to DoD. The first includes those creating entirely new technologies for defense use, like Anduril, which pioneers systems that require significant customer education and high R&D costs but establish deep tech moats and long-term influence over requirements. These startups must navigate a fine line of convincing the DoD to change how they operate in order to take advantage of modern technology opportunities. However, this path has the benefit of establishing a unique and defensible market position, typically resulting in the aforementioned PoRs. Another strategy involves startups improving existing DoD technologies by reducing costs, improving usability, or expanding scalability. Companies like Apex Space and Albedo Space exemplify this strategy by refining satellite technology – satellite bus manufacturing and 10cm earth observation imagery respectively. The DoD already has access to satellite bus manufacturing technology and 10cm earth observation imagery, but the current state of the art for both technologies are extremely expensive and inefficient. While these startups avoid the need for customer education, they face the challenge of displacing entrenched vendors and risk competing primarily on price, requiring strong execution and process advantages. The third strategy adapts private sector technologies for DoD use. For example, C3.AI developed data analytics products for the DoD, leveraging technology that had already demonstrated successfully in commercial applications. These startups focus on integration and execution moats rather than technical innovation, as their value lies in adapting existing tools to meet specific defense needs." https://lnkd.in/g42m7SWN

3

VC investors are more interested than ever in the defense industry and defense technology. It could mark a proper sea change moment for investing in global security. Jason Rathje from Office of Strategic Capital leads the DoD's focus "on strategic capital needs where public support is required to attract private investment..." and "we hope to license our first funds ... where we provide loans to investors to increase early-stage investment in these very difficult technology areas." Katherine Boyle general partner at Andreessen Horowitz has said, "I don't think I've ever seen such excitement, enthusiasm for investing in defense tech across a wide variety of investment firms. I think it's something that pretty much every serious … traditional Silicon Valley investment firm has at least one partner who's focused on aerospace or defense." Not that there aren't challenges. Nick Beim , partner at Venrock: "You'll have to deal with an existing set of economic players who kind of don't want a lot of competition and may be more interested in doing something themselves and partnering with a company that's got a ready solution. So, there are a lot of risks." #defensindustry #defensetech Tholus Capital Ajax Defense https://lnkd.in/eqN68VKV 

13

While the Acquisition 360 final rule was issued in Sep 2023 and a version of the survey has been available since that time on MAX.gov, GSA's Acquisition Gateway provided this post yesterday to the Acquisition 360 survey on its site. https://lnkd.in/g-23hVgj This survey is a way you can continually communicate your experiences as a contractor / offeror or Government employee in the Federal marketplace. Why? The supplier base is declining, particularly among small businesses who are its backbone. This is an avenue for the Government to understand what the supplier base is thinking regarding specific notices so it can address pain points, review strategies and feedback, and find ways to sustain and (hopefully) increase the base. Have feedback to share about a particular notice? At the link in the post below, you'll enter a notification number (i.e., RFI, RFP, etc) and indicate your role as it relates to the action. Then proceed through the survey providing your feedback. DoD has stated that all solicitations will include a link to the Acquisition 360 feedback survey. If an agency notice does not include a link, this link can be used. (Psst...GSA...it would be VERY helpful if the Acquisition Gateway site menu indicated this survey is available with a path to find it rather than it being buried under the "Additional Resources" menu that doesn't expand. I mean, we WANT people to see it, right? Making it a featured resource might be a great first step to helping the supplier base know it's available and it is important to the Government to receive this feedback (maybe?). As of this morning, the mobile view of the menu does not show an intuitive link to the survey in its menu options.)

10

1 Comment

If you didn't think it could get any busier, agencies are pushing out final rules this time of year like crazy. DoD has issued several which amend DFARS. All are effective today, 10/1/2024. (And look for the complimentary post with new proposed rules also issued by DoD.) Modification of Prize Authority For Advanced Technology Achievements (DFARS Case 2022-D014) - Implements Section 822 of the FY22 NDAA authorizing DoD to carry out advanced technology prize programs to award contracts to recognize outstanding achievements in basic, advanced, and applied research; technology development; and prototype development. (https://lnkd.in/guZPARix) Modification of Notification of Intent to Transport Supplies By Sea (DFARS Case 2020-D026) - Streamlines required notifications of transportation of supplies by sea, reducing the number of representations offerors must provide. (https://lnkd.in/gjdz2SDN) Preference for United States Vessels in Transporting Supplies By Sea (DFARS Case 2021-D020) - Clarifies when DoD may waive the requirement for DoD supplies to be transported by sea in either vessels belonging to the U.S. or vessels of the U.S. (https://lnkd.in/g4zdzEn8) Assuring Integrity of Overseas Fuel Supplies (DFARS Case 2022-D013) - Creates a new DFARS provision in which offerors must certify that the fuel (or derivatives of the fuel) to be provided will not be sourced from a nation or region prohibited from selling petroleum to the U.S. (https://lnkd.in/gNsHfcrb) Data Universal Numbering System to Unique Entity Identifier Transition (DFARS Case 2022-D023) - Aligns DFARS with FAR regarding the transition from the DUNS number to the UEI. (https://lnkd.in/gjpAcJR7)

12

1 Comment

Hwa Yu is CEO of Delta One LLC, a U.S. consulting firm on industrial cooperation and Cybersecurity Maturity Model Certification (CMMC). Brian Hobbs is a PhD candidate at Virginia Tech. "Discussions about an RDP-A between the U.S. and South Korea have been on and off since the late 1980s. Unsurprisingly, in Korea, the main reasons for not signing the RDP-A remain unchanged for almost four decades, even though its defense industry has become globally competitive and mature — exceeding 15 billion dollars in average annual defense industry exports and aiming to be among top four defense exporters globally by 2027. The greatest concern for Korean defense industries revolves around full and open mutual access to each other’s defense market. RDP-A opponents in Korea fear that the technologically advanced U.S. defense industry could dominate the market, weakening the local industrial base, if U.S. companies gain unrestricted access. Additionally, they argue that Korean companies would face stiff competition from 28 other RDP-A countries and that the DoD market open to foreign companies is actually not that big due to numerous restrictions designed to protect domestic companies, such as small businesses, despite the Buy American waivers. However, understanding how the RDP-A benefits both countries mitigates these concerns. First, the RDP-A is on one hand a framework for communicating about industrial cooperation and market access. Second, the RDP-A is meant to remove discriminatory barriers to procurement, to the extent mutually beneficial and consistent with national laws, regulations, policies, and international obligations. Third, any country can terminate the RDP-A. If the Korean government should find the RDP relationship to be detrimental, it can withdraw. Fourth, although historical data does not provide any consistent patterns of exports or imports, trends suggest that RDP-As tend to strengthen industrial cooperation overall, benefiting both sides of the partnership. Finally, all RDP-As have expiration dates, but none of the 28 countries with RDP-As have walked away from their RDP relationships. All have renewed their agreements, some which have remained in effect for several decades. The longevity of the agreements strongly suggests that membership in the U.S.-centered RDP-A network does not produce negative results among partner country defense industries. "

1

Defense Tech and Acquisition: Pivot or Perish Edition Many executives across Washington are 🚨 sounding the alarm 🚨 that bold change is needed to address the critical national security threats. This week Matt MacGregor and I cover top stories like: • CNAS Defense Task Force Report by Michael A. Brown, Ellen Lord, Andrew Metrick, and Robert Work • Op-eds by Robert Gates, David Petraeus and Andy Yakulis • DoD scales production of munitions • Hudson Institute panels on Defense Innovation • Army Awards Robot Contracts • Marines get new C-UAS systems by Epirus • Navy needs to shipyards • Air Force reoptimizes and disaggregates • Space Force gets more software vendors • Congress punts on a defense budget with a CR https://lnkd.in/ePag2XE8

42

1 Comment