Defense Watch: Sub Deal Soon, Mach Buy, THAAD Investment, CUAS Marketplace

Sub Contract Close. Navy officials on May 19 told the Senate Armed Services Committee (SASC) the service is close to finalizing a contract with General Dynamics’ Electric Boat and HII on 10 Block VI Virginia-class attack submarines and two Columbia-class ballistic missile submarines but they are trying to get the language right and better than in past agreements.  SASC ranking member Jack Reed (D-R.I.) indicated the Navy last provided an update to the committee two weeks ago that contract negotiations “are very close to being finalized” and asked what the current status was. Chief of Naval Operations Adm. Daryl Caudle said they need to get the contract done “but we want to make sure what’s baked into it, the lessons we’ve learned on poor contracting strategies that we’ve not always been in the right position to have the right oversight and the right incentives and the right mechanisms to ensure we get them delivered on time.” He added the Navy acquisition team and Secretary of Defense’s team have provided a “thoughtful approach” to get it right and while he cannot give a specific time, they expect the contract to be finalized “at any time…and we’re just making sure that we get that contract language correct.”

Sub Tenders. The Navy’s acting head of acquisition on May 20 told lawmakers the Navy’s next-generation submarine tenders are “probably going to be online in the early 2030s, realistically.” Jason Potter told the House Armed Services Seapower subcommittee that the Navy is continually assessing service life extensions for its current fleet, including the Emory S. Land-class submarine tenders. When asked about tenders by Rep. Scott DesJarlais (R-Tenn.), Potter noted the Navy is focused on finishing the next-gen tender design with General Dynamics and getting the first ship under construction. “We’ve had a good process here to work through the requirements,” Potter said. It’s the first time we’ve built a sub tender in a while, and kind of making sure it’s going to have the maintenance capability to maintain our latest Virginia-class submarines, and the quantities took a measure twice, cut once approach over the last few years. So, I think we’re there, we need to finish the design and get into construction.” The Navy’s FY 2027 budget request seeks $4.4 billion to start procuring two new tenders and projects contract awards in April 2027 and delivery by November 2033 and May 2034.

Mach Deal. Startup Mach Industries last week said it has acquired Exquadrum, Inc., a developer and manufacturer of solid rocket motor propulsion technologies, launch capabilities, divert and attitude control systems, munitions, testing and technical services. The acquisition helps with Mach’s vertical integration and will accelerate development cycles reduce costs through tighter integration between propulsion, energetics, guidance, control and airframes. Terms of the deal were not disclosed. Mach is developing cruise missiles, a drone interceptor, munitions, a transonic glider munitions dispenser, and microturbine engines. Exquadrum is now Mach Energetics, and brings with it a 70,000 square-foot facility in Victorville, Calif.

Havoc Spear. Air Force Special Operations Command’s (AFSOC) moniker for the Leidos-built AGM-190A small cruise missile is Havoc Spear, the command announced at the Special Operations Forces Week annual conference in Tampa, Fla. During a visit to AFSOC headquarters at Hurlburt Field, Fla., last November, Air Force Secretary Troy Meink dubbed the AGM-190A as Havoc Spear–“a capabilities descriptor of widespread destruction via mass attack (Havoc) and precision targeting from afar (Spear),” according to AFSOC.

Aussies Extending Subs. The Australian Defense Ministry on May 19 announced life extension of the first of its six Collins-class submarines will begin at the end of the month, to be performed by ASC, starting with the HMAS Farncomb. The government said this will entail a conditions-based sustainment approach to retain and restore base components while upgrading weapons and other systems. Australia plans to extend the life of its six submarines as it transitions to procuring three to five U.S.-made Virginia-class attack submarines in the 2030s before ultimately starting to produce its own SSN-AUKUS submarines in the 2040s. “Extending the life of all six Collins class submarines is critical to maintaining that edge as we transition the Navy from conventional to nuclear-powered submarines,” Deputy Prime Minister of Minister of Defense Richard Marles said in a statement.

DDG-140. General Dynamics’ Bath Iron Works (BIW) marked the start of fabrication of the future USS Thomas G. Kelley (DDG-140) Arleigh Burke-class destroyer on May 21 at the shipyard’s Structural Fabrication Facility in Brunswick, Maine. DDG0140 will be the 48th destroyer in its class built at BIWand the seventh Flight III version to start construction in Maine. The ship is named in honor of a Vietnam War medal of Honor recipient. Beyond DDG-140, BIW currently has under construction the Flight IIA destroyer Patrick Gallagher (DDG-127) plus other Flight III destroyers Louis H. Wilson Jr. (DDG-126), William Charette (DDG-130), Quentin Walsh (DDG-132), John E. Kilmer (DDG-134), Richard G. Lugar (DDG-136) and J. William Middendorf (DDG-138).

Scarlet Dragon. During the Scarlet Dragon experimentation exercise, command and control data platform provider Picogrid and tethered drone maker Hoverfly demonstrated a persistent low-altitude threat detection capability. Unlike battery-powered drones that have to land and recharge or swap out their power source, Hoverfly’s Spectre tethered drone can sense indefinitely from 200 feet. In the exercise at Fort Bragg, N.C., Picogrid’s Legion platform enabled data from Spectre to flow into the wider operational network to fuse with data from other sensors. “Whether it’s supporting base defense or moving with a unit in the field, the ability to add persistent, elevated sensing without creating another isolated system changes how that data can actually be used,” Cam Kondo, deployment strategist at Picogrid, said in a statement.

C-UAS Marketplace. Australia, Poland and South Korea have signed agreements with the U.S. Army to participate in the Joint Interagency Task Force (JIATF)-401’s marketplace for new counter-unmanned aircraft systems (C-UAS). “The drone defense marketplace connects a diverse array of solutions with an expanding network of users who need scalable, effective and interoperable technologies. The initiative aligns with the Army secretary’s goal of providing partner nations with timely access to essential capabilities and highlights JIATF-401’s central role in advancing that mission,” the JIATF-401 said in a statement on May 19. The addition of the three nations follows the U.K. and Romania previously joining the JIATF-401 marketplace, with the Army having set a goal for 25 partner nations to be part of the framework for interoperable C-UAS by this summer.

Army Drone Award. The Army’s 1^st Aviation Brigade, Army Aviation Center of Excellence, has awarded Redwire Corp. a $15 million follow-on order for the company’s Stalker Group 2 unmanned aircraft system (UAS), which will be used for training by tactical UAS specialists, the company said last week. It is the third order from the brigade in the past eight months, with total awards at $24.8 million. The fixed-wing Stalker can takeoff and land autonomously. Redwire last week also said it received a “high-eight figures” contract from a NATO ally to supply the Penguin Mk3 UAS.

Navy PAE Strategic Systems. The Senate confirmed the promotion of Rear Adm. Douglas Williams to vice admiral as he moves from director for test at the Missile Defense Agency to Portfolio Acquisition Executive (PAE) Strategic Systems Programs (SSP) in June. Williams will succeed Vice Adm. Johnny Wolfe, current director for PAE SSP, who is set to retire in June following a career of over 37 years. PAE SSP manages sustainment of the nuclear weapon systems on the Ohio-class ballistic missile submarines (SSBNs) and supports integration of the D5LE weapon system on the new Columbia-class SSBNs. 

SubSea Craft. United Kingdom-based maritime technology and defense firm SubSea Craft on May 20 announced its plans to expand into Virginia Beach, where it will hire positions ranging from leadership to operations, field engineering and technicians. The company specializes in developing maritime platforms and technologies designed to support modern naval and defense operations in complex environments, including its VICTA advanced diver delivery craft and MARS unmanned surface vehicle. The Virginia Beach site will serve as a strategic location as SubSea expands engagement with U.S. defense and maritime industry partners, including local company Global Technical Systems. The project was led by Virginia Beach Economic Development and the Hampton Roads Alliance and received an economic grant from the Virginia Beach Development Authority. SubSea Craft underscored its continuing participation with AUKUS industry partners under the Pillar II non-submarine technology sharing initiatives.