Navy Used BALTOPS Exercise To Demonstrate USV Tactics, Evaluating Vessels

The head of a Navy task force focused on evaluating and using lower cost unmanned systems for 6th Fleet said recent testing at the Baltic Operations 2025 (BALTOPS) maritime exercise was the first time they brought these systems to test at scale with nearly two dozen systems.

Task Force 66 was established in 2024 under 6th Fleet to analyze and integrate low-cost robotic and autonomous systems that can help impose costs on adversaries.

Royal Navy Archer Class P2000 patrol vessel HMS Pursuer (P273) conducts counter unmanned surface vessel operations with global autonomous reconnaissance crafts (GARC) attached to Commander, Task Force 66 during Baltic Operations (BALTOPS) 2025, June 12, 2025. (Photo: U.S. Navy by Mass Communication Specialist 2nd Class Christine Montgomery)
Royal Navy Archer Class P2000 patrol vessel HMS Pursuer (P273) conducts counter unmanned surface vessel operations with global autonomous reconnaissance crafts (GARC) attached to Commander, Task Force 66 during Baltic Operations (BALTOPS) 2025, June 12, 2025. (Photo: U.S. Navy by Mass Communication Specialist 2nd Class Christine Montgomery)

Task Force 66 is trying to “provide asymmetric dilemmas for the adversary to impose costs in their operations by having to deal with our asymmetric approaches. We use robotic and autonomous systems (RAS) to help with development of those dilemmas and to lower the risk to force, enrich the mission of operations by employing the RAS systems in that regard,” Rear Adm. Michael Mattis, Commander of Task Force (CTF) 66, told Defense Daily in a telephone interview.

He said the June BALTOPS exercise was unique in that they brought unmanned systems to the major regular exercise for the first time “at scale” with 22 unmanned surface vessels (USVs) that demonstrated tactics with Navy ships. They also acted as opposing forces for allied vessels to help other naval elements, like surface ships, familiarize themselves with the signature, capabilities and limitations of USVs.

Mattis said for the task force these vignettes were “good practice on developing some basic tactics, techniques and procedures on how we might generate an attack to create multiple dilemmas for them to defend against, and/or in order to generate surprise from the maritime environment for the attack to be more successful.”

He said CTF-66 is currently using three manufacturer-variant USVs: 10 HavocAI solar-powered electric motor Rampage USVs attritable contested logistics and maritime domain awareness, small SeaSat Lightfish solar-powered long-dwell USVs for maritime domain awareness USV, and BlackSea Global Autonomous Reconnaissance Craft (GARC) procured under the Replicator program.

Mattis noted the Rampage has a 300 nautical mile range, operates three to five knots but can sprint to 20 knots, and is cheap and attritable at under $100,000 per unit. 

The smaller Lightfish USVs is a slower long-dwell vessel specialized only for maritime domain awareness mission, but is able to stay at sea for weeks to months at a time and can travel about about two to three knots but can sprint to five to 10 knots. Mattis said Lightfish is focused on low-speed loiter missions  with a “very good camera and a good thermal camera on it as well, and some resilient communications methods that give us the ability to communicate with it via multiple mechanisms.”

Mattis also boasted Lightfish has a commercial radar and collision avoidance capabilities via LIDAR to avoid objects and meet COLREGS maritime collision avoidance regulations. However, the Lightfish is “a little more expensive than the HavocAI Rampages, runs probably between a quarter million and a half million dollars per unit, but again, very capable, long duration, dwell USV.”

He noted the third boat tested, GARC, is the U.S. Pacific Fleet’s one-way effector boat choice and they have 10 of the older prototype boats. He described GARCs as having a 500 nautical mile range, can reach 40 knots in their final attack mode, can cruise at 15 to 25 knots, and also “provide excellent maritime domain awareness in addition to their ability to be become interceptors or one-way attackers as needed.”

Graphic of HavocAI's Rampage uncrewed surface vehicles (USVs). (Image: HavocAI)
Graphic of HavocAI’s Rampage uncrewed surface vehicles (USVs). (Image: HavocAI)

Mattis said the GARCs were used in red vs. blue skirmishes  during BALTOPS as the opposing red forces.

He also told Defense Daily the Navy is focused on having sailors operate multiple unmanned systems at once, in contrast to Ukraine’s structure. Mattis also leads elements of Ukraine partner support, including intelligence sharing.

“One of the things that our partners do in Ukraine, that we do not do generally, is they are very much focused on a first person view, or FPV operations with USVs. They look at one operator, one USV as sort of a standard way to operate,” Mattis said.

The U.S. military does not believe they can scale USV operations appropriately with that FPV model, so they are working on “broader collaborative autonomy, where we have one operator on what we call that single pane of glass, to operate multiple UXS, unmanned systems in general more broadly, off of the same single pane of glass.”

Mattis confirmed CTF-66 has demonstrated up to 12 USVs and one Unmanned Aerial Vehicle operating with one operator at once and they have not reached the upper limit.

“We just haven’t done more than that, because we haven’t had the opportunity to have all of those assets together than sort of the one time we did that. But I think we’re fairly confident that we could operate with all 22 of our boats, if we needed to, and probably more than one UAS if needed to.”

A Seasats 10-foot Lightfish autonomous surface vehicle (ASV). (Photo: Seasats)
A Seasats 10-foot Lightfish autonomous surface vehicle (ASV). (Photo: Seasats)

He described that one operator for multiple vehicles works because each platform has autonomy to keep it sailing or flying and avoiding obstacles, then interacting with a collaborative autonomy model that tells the vehicles to take on a mission.

Mattis compared it to running a play in football.

“You would give those robots a mission to go secure an area or go look in an area, or go defend an area, or go attack a boat, or go swarm a boat. There’s lots of ways that you could give it a play so that that formation could collaborate and accomplish that mission together. And so that’s how you get a single operator we call on the loop, not in the loop operating each one of those directly, not tasking each post directly, but like drawing a box on a chart, on the single pane of glass, and then tasking all those boats to go create a blockade In that box.”

HASC Backs Army’s ATI Plans, While NDAA Draft Directs More Details On Proposed Cuts

While the House Armed Services Committee’s defense policy bill draft backs most of the Army’s divestments as part of its new transformation plan, the legislation directs the service to provide more details on the budgetary impacts of its proposed cuts.

“…The committee is concerned with the manner in which the Army presented its plans to Congress, the lack of supporting analysis and the apparent lack of strategy and vision for what the Army should look like in 2030, 2035, and beyond,” lawmakers write in the HASC Tactical Air and Land Forces Subcommittee portion of the fiscal year 2026 National Defense Authorization Act.

A live fire demonstration of the Army’s newest combat vehicle, the M10 Booker, marks the conclusion of the M10 Booker Dedication Ceremony at Aberdeen Proving Ground, in Aberdeen, Md., April 18, 2024. (U.S. Army photo by Christopher Kaufmann)

“The Army has yet to provide complete budgetary details, tradeoffs and risk assessments of proposed divestments and investments of capabilities and programs associated with its Army Transformation Initiative,” the bill report adds.

As part of its new transformation initiative, the Army has detailed plans to cut “obsolete” programs such as the Joint Light Tactical Vehicle, Humvee, AH-64D Apache, the M10 Booker and Gray Eagle UAS, and potentially ending development of the Improved Turbine Engine Program, Future Tactical UAS, and the Robotic Combat Vehicle.

The Army’s FY ‘26 budget request includes shedding $4.9 billion of older and “ineffective” equipment as part of its new transformation plan (Defense Daily, June 27). 

HASC is set to consider its defense policy bill proposal on Tuesday, which supports an $848 billion topline for the Pentagon that largely adheres to the Trump administration’s FY ‘26 discretionary spending request (Defense Daily, July 11). 

The HASC chairman’s mark for the NDAA appears to authorize the Army Transformation Initiative (ATI)-related programs at the requested levels for FY ‘26, while adding $90 million to support the remanufacturing of three AH-64D Apaches to the last E-model configuration, stating the panel “supports the Army’s intent to divest of systems that are no longer relevant on the battlefield, and to more rapidly field new systems.”

The bill directs the Army secretary to brief HASC by October on the FY ‘26 budgetary impacts, funding requirements over the next five years, capability-based requirements  and capability gaps identified as a result of planned divestments as it carries out the ATI plan.

Lawmakers also included a provision for the Army secretary to inform the congressional defense committees 30 days prior to implementing “any additional proposed changes taking place as part of the ATI or broader transformation effort.”

“There’s a lot of questions still from the committee that we’re looking for answers from the Army through those requirements,” a senior congressional official told reporters last week. 

HASC has previously pressed the Army for more details on ATI, with Chair Mike Rogers (R-Ala.) telling Army officials that Congress needs a “detailed blueprint of the specific changes being proposed and how the Army plans to implement them” (Defense Daily, June 4). 

House appropriators, who will ultimately set final spending levels, rebuked many of the Army’s planned cuts in its FY ‘26 defense bill, which includes more funding for JLTVs, Gray Eagles and Humvee upgrades as well as continuing development of ITEP and FTUAS (Defense Daily, June 12). 

Saronic, Vigor Marine Partner Around Support For Autonomous Vessels At Scale

Startup autonomous surface vessel developer Saronic Technologies and legacy industrial ship repair and small vessel builder Vigor Marine Group have partnered to leverage their respective capabilities to increase support for autonomous systems at scale.

Saronic is developing and producing four autonomous surface vessels (ASVs) ranging from six to 150-feet in length.

Vigor operates in three divisions, Maintenance and Modernization, Marine Services, and Marine Fabrication. The Vancouver, Wash.-based company has facilities on the East and West Coasts, and has built more than a dozen unmanned surface vessels, including Leidos’s [LDOS] Sea Hunter ASV for the Defense Advanced Research Projects Agency.

For Texas-based Saronic, the partnership will allow it to leverage a company with “trusted” existing and long-time Defense Department and commercial customers for ship repair, modernization, maintenance, and the building of small vessels, and bi-coastal infrastructure, a company spokesperson told Defense Daily.

The companies will “explore how to sustain a future fleet of larger autonomous ships,” the spokesperson said, adding that “we’ll be jointly exploring opportunities to build lifecycle solutions that meet the unique demands of larger autonomous vessels.”

The partnership also offers potential opportunities around maintenance and readiness of autonomous ships over the long-term, the spokesperson said.

“This partnership brings together two leaders in the maritime industry to collaboratively create a full lifecycle solution that can ensure our maritime customers are mission-ready today and into the future,” Dino Mavrookas, co-founder and CEO of Saronic, said in a statement. “Combining Saronic’s technical leadership in autonomous maritime systems and scaled production with Vigor’s strategically located infrastructure and experience in maintenance, repair, and overhaul, and lifecycle sustainment creates new opportunities to accelerate capability delivery and ensure that government and commercial customers can count on a reliable, trusted sustainment network to meet the readiness requirements for larger autonomous ships today and into the future.”

The announcement also suggested collaboration around vessel construction and integration.

“Exploring the combination of Saronic’s autonomy technologies and Vigor’s experience in marine vessel fabrication, subsystem integration, and MRO support enables us to find solutions to better support the warfighter,” Mark Norris, vice president of Vigor Marine Fabrication, said in a statement.

Trump: NATO To Purchase ‘Billions’ In U.S. Weapons For Ukraine, Including Patriots

President Trump on Monday announced a new plan for NATO countries to purchase “billions of dollars” in U.S. military equipment that will be provided to assist Ukraine, including Patriot air defense systems. 

The initiative was detailed alongside NATO Secretary General Mark Rutte and follows the Trump administration’s recent brief pause of weapons aid shipments to Ukraine.

President Trump meets with NATO Secretary General Mark Rutte in the Oval Office on July 14, 2025. Photo: Screenshot of livestream.

“We make the best equipment, the best missiles, the best of everything. The European nations know that. And we’ve made a deal today…where we are going to be sending them weapons and they’re going to be paying for them. The United States will not be [making any payment]. We’re not buying it, but we’ll manufacture it and they’re going to be paying for it,” Trump said in the Oval Office where he was meeting with Rutte.

“This is a very big deal we’ve made. Billions of dollars of military equipment is going to be purchased from the United States going to NATO, etc., and that’s going to be quickly distributed to the battlefield. Ukraine will take it up,” Trump added. 

Trump said that RTX [RTX] Patriot air defense batteries, which include Lockheed Martin [LMT]-built interceptors, could be provided to Ukraine by NATO partners “within days,” and said up to 17 Patriot systems that are part of a pending foreign military sale with another country may also be rerouted to Kyiv. 

“We have one country that has 17 Patriots getting ready to be shipped. They’re not going to need them for [themselves]. So we’re going to work a deal where the 17, or a big portion of the 17, will be going to [Ukraine],” Trump said.

Rutte said that both Germany and Norway are involved in supporting potential Patriot battery deliveries, adding that the newly announced plan will allow countries to more rapidly transfer current equipment to Ukraine while having the opportunity to purchase capabilities from the U.S. via the FMS process to replenish their stockpiles.

“The U.S. has decided to massively supply Ukraine with what is necessary through NATO. Europeans [are going to be] 100 percent paying for that,” Rutte said. 

Trump, who said he was “very unhappy” with Russia, added that Moscow has 50 days to work toward a peace deal with Ukraine otherwise the U.S. will improve 100 percent “secondary tariffs.” 

“I’m disappointed in [Russian] President [Vladimir] Putin because I thought we would have had a deal two months ago, but it doesn’t seem to get there,” Trump said. 

The Pentagon earlier this month said it had paused the shipment of some weapons and munitions to Ukraine, with Pentagon Spokesman Sean Parnell describing it as a “capability review” (Defense Daily, July 2).

Trump then confirmed last week the U.S. has resumed sending “primarily” defensive weapons to Ukraine (Defense Daily, July 8). 

“We were pretty sure this [new deal] was going to happen, so we did a little bit of a pause,” Trump said on Monday. 

The new weapons aid update follows the Trump administration’s move to place more of the security assistance responsibility on NATO, to include having the U.K. and Germany take over leading the Ukraine Defense Contact Group (Defense Daily, April 15). 

“This is, again, Europeans stepping up,” Rutte said. “I’ve been in contact with many countries. I can tell you, at this moment, Germany, massively, but also Finland, Denmark, Sweden and Norway, the Kingdom of the Netherlands [and] Canada, they all want to be part of this. And this is only the first wave, there will be more.

“It will mean that Ukraine can get its hands on, really, massive numbers of military equipment, both for air defense but also missiles, ammunition, etc.” Rutte added. 

At the NATO summit in The Hague, Netherlands last month, member nations agreed on a new target goal to spend five percent of their gross domestic product on defense (Defense Daily, June 23). 

“Today’s announcement by President Trump demonstrates his determination to implement a peace through strength policy against the Russian dictator. I also commend NATO Secretary General Mark Rutte and our allies, especially Germany, for their commitment in this effort and for taking decisive action to transfer weapons immediately,” Sen. Roger Wicker (R-Miss.), chair of the Armed Services Committee, said in a statement. “I hope President Trump’s decision to accelerate military aid to Ukraine and to threaten crippling sanctions will drive this conflict closer to its end.  The president should have every tool available to increase pressure on Putin.”

The Senate Armed Services Committee’s version of the fiscal year 2026 National Defense Authorization Act extends the Ukraine Security Assistance Initiative through 2028 and authorizes funding up to $500 million, while the House Armed Services Committee’s version of the defense policy bill also extends USAI but at $300 million a year.

Saildrone Envisions European Expansion After Baltic Sea Exercises

The founder and CEO of unmanned surface vessel (USV) company Saildrone said the company is ripe for significant expansion to more European customers following a June NATO test and demonstration in the Baltic Sea.

Last month, Saildrone launched four 33-foot long Voyager USVs out of Denmark: two north of the country and two sailed 500 miles to Finland for two weeks of operations with NATO’s Task Force X. While there, they performed in various demonstrations, including red-blue fleet operations.

Commercial operators deploy Saildrone Voyager Unmanned Surface Vessels (USVs) out to sea in the initial steps of U.S. 4th Fleet’s Operation Windward Stack during a launch from Naval Air Station Key West’s Mole Pier and Truman Harbor on Sept. 13, 2023. (Photo: U.S. Navy by Danette Baso Silvers/Released)
Commercial operators deploy Saildrone Voyager Unmanned Surface Vessels (USVs) out to sea in the initial steps of U.S. 4th Fleet’s Operation Windward Stack during a launch from Naval Air Station Key West’s Mole Pier and Truman Harbor on Sept. 13, 2023. (Photo: U.S. Navy by Danette Baso Silvers/Released)

Saildrone first announced the deployment of four USVs to the Baltic Sea under contract to the Danish Armed Forces in May (Defense Daily, May 15).

NATO said this was built upon the U.S. Navy’s Task Force 66 operations in the Middle East, where slow-moving Saildrone USVs observe a maritime region. In that theater, after Saildrone vessels observe suspicious vehicles, the Navy deploys faster moving USVs to further investigate.

This exercise helped increase “the visibility for Saildrone to other NATO participants. It was closely watched by all the NATO countries there, and it was great to be able to get that visibility into Saildrone services and what we’re going to bring to the Baltic in the future,” founder and CEO of Saildrone Richard Jenkins told Defense Daily in an interview.

Jenkins could not yet disclose specific countries, but amid these operations he confirmed Saildrone has “multiple countries in advance discussions with regard to Saildrone services in the Baltic.”

Ultimately, he hinted that before the end of the year, “we should expect to see, I think, multiple Saildrone fleets in the Baltic.”

While he could not provide specifics during discussions and negotiations, Jenkins said the entire Baltic Sea could be covered by 20 to 30 Saildrone Voyager USVs for 24/7 coverage, from Denmark to Finland.

He specified Voyager is the optimal choice over their largest vessel, the 65-foot Surveyor, given relatively shallow water and how its sonar and bulti-beam sensors can “reach the bottom, easy.”

Saildrone USVs have sensors to map vessels both on and below the water surface, “which is crucial for the pipeline and fiber optic and national cable security,” Jenkins added.

He also argued Saildrone is in a particularly good position in the near term to offer and expand their USV offerings given NATO’s new commitment to increase member defense spending to five percent of GDP and global difficulties with sailor recruitment.

In this changing environment, Jenkins said Sialdrone has two major benefits over its competitors: its operating structure and long experience.

The company has typically been working with the U.S. Navy and now Denmark in a contractor-owned, contractor-operated (COCO) structure, so new clients do not have to ramp up naval recruitment and training just to operate the vessels nor deal with complex permanent procurement processes.

“They need solutions immediately and there’s just not many levers you can pull, if you’re a European country, to increase maritime security. And a ship [would] just take too long to build, too expensive. And what we’re seeing across the world is, with all our customers, they are struggling with recruitment and retention.”

Jenkins did note the company is open to other contracting models, including government-owned and operated vessels.

Saildrone Surveyor unmanned surface vessel starts a mission to map unmapped seafloor between San Francisco, Calif. and Honolulu, Hawaii in 2021 (Photo: Saildrone)
Saildrone Surveyor unmanned surface vessel starts a mission to map unmapped seafloor between San Francisco and Honolulu, Hawaii in 2021 (Photo: Saildrone)

Jenkins also noted Saildrone has been operating almost daily for upward of a decade and also entering its fourth year of continuous operations with the U.S. Navy. He said that probably makes them the “only operationalized USV on the planet.”

Although there are many and increasing offerings of unmanned maritime platforms, “I’m not sure of anyone doing anything more than demonstrations or daily missions…nothing else is really operationalized because it doesn’t have the range or endurance to be operated down-range.”

“What Saildrone has is 10, 11 years now of data collection and experience from all over the world, from the ice edge of the Arctic to the Antarctic, to hurricanes, and it’s that learning that gives you the ruggedness for the vehicle,” he added.

Jenkins described Saildrone’s sensor and software capabilities as combining 10 frames per second of images from its cameras with radar, radio frequency, acoustic and other sensors to provide a fused sensor output, so the customer sees a real-time stream of targets that is classified into various classes with threat levels.

“That is a very, very different place to what some of our competitors are currently doing, who are maybe where we were 10 years ago. They’ve just got a vehicle that works, but no actual onboard systems to give it the robustness or reliability or the sensor fusion capability that you can only get with time,” Jenkins said.

Expanding Production and Payloads

Jenkins said the company is open to working with more shipbuilders, expanding to international production, and adding new payloads to their USVs.

Saildrone is notably agnostic about who builds the USV hulls because they retain production of the “electromechanical backbone” at their facility in Alameda, Calif., for the foreseeable future. This includes the vessels’ necessary software, firmware and hardware.

“We’ve maintained the quality control piece of the electromechanical and software and firmware backbone, and it’s a modular system that can drop into almost any craft. So we are agnostic to where we manufacture the vehicles, and would absolutely look into in-country manufacturing for our international partners.”

In 2022 Austal signed a partnership with Austal USA for its aluminum production shipyard to become the exclusive builder of Saildrone’s largest USV, the Surveyor (Defense Daily, Aug. 30, 2022).

The Surveyor weighs 15 tons, comes with 600 gallons of diesel to help provide long endurance, and can carry a one to two ton payload.

Jenkins highlighted that only about 20 percent of a Saildrone vessel’s unique capabilities are tied to their specific vehicles, so they could apply the software and firmware backbone with the autonomy package to other types of vessel as well. 

However, he admitted that utilizing wind and solar power in that 20 percent is “part of the secret sauce of Saildrone.”

Saildrone is also open to adding new sensors and Jenkins admitted armaments are a “logical outcome for most unmanned surface vehicles.”

“I think everything is on the table. I think it’s a rapidly evolving piece, and we’re agnostic to the sensors and the payloads that we incorporate into the vehicle.”

If necessary, Jenkins said they could scale up vessels like their Surveyor. He compared the benefits to increasing vessel size to the varying sizes of yachts.

“The bigger it gets, the better it gets in terms of speed, range, duration. Water line length gives you speed and range, and then obviously volume gives you horsepower and fuel. So we are happy to scale the vehicle to any payload requirements.”

DoD AI Office Awards Frontier AI Contracts For Workflow Needs

The Defense Department’s Chief Digital and Artificial Intelligence Office (CDAO) has awarded contracts to Anthropic, Alphabet’s [GOOG] Google, OpenAI, and Elon Musk’s xAI to help the department leverage autonomous models for workflows in different mission areas.

Each company’s award has a $200 million ceiling.

The contracts will give DoD wider access to commercially-available agentic AI workflows and the resulting relationships will allow the companies to better understand the department’s needs, the CDAO said on Monday.

“The adoption of AI is transforming the department’s ability to support our warfighters and maintain strategic advantage over our adversaries,” Doug Matty, chief digital and AI officer, said in a statement. “Leveraging commercially available solutions into an integrated capabilities approach will accelerate the use of advanced AI as part of our joint mission essential tasks in our warfighting domain as well as intelligence, business, and enterprise information systems.”

Google Public Sector said that in addition to its frontier AI capabilities DoD may also leverage the company’s cloud infrastructure and related tools to “scale the adoption of agentic AI across enterprise systems to drive innovation and efficiency with agile, proven technology.”

HASC Releases NDAA Text With Nuclear Energy Working Group, Two-Site Pits

The House Armed Service’s starting version of the National Defense Authorization Act (NDAA) would authorize $25.4 billion to the National Nuclear Security Administration (NNSA) and establish a New Advanced Nuclear Energy Working Group.

The House Armed Services Committee (HASC) will mark up the bill at 10 a.m. Eastern time Tuesday.

The House would allow the NNSA to spend almost $200 million more than the White House requested in the fiscal 2026 budget. 

The topline is $893 billion, which matches President Trump’s discretionary request and would be 14% greater than fiscal 2025. With the newly passed reconciliation bill, if the NDAA is passed that would mean $1.04 trillion authorized for defense spending in fiscal 2026.

The bill’s starting text also includes a section that would codify NNSA’s two-site strategy for producing plutonium pits. The two locations are Los Alamos National Laboratory in New Mexico and the Savannah River Site in South Carolina. By April 2026, the Nuclear Weapons Council would be required to brief HASC on setting pit production rate and schedule requirements and align them with an updated assessment of DoD’s needs.

Senior congressional officials Friday cited Trump’s executive order on expanding nuclear energy. This came when the officials were asked by reporters about the New Advanced Nuclear Energy Working Group in both Senate and House versions of the bill at a virtual press background briefing, 

“The Department has been working for a while now on expanding its energy production means, and they’ve been looking at things like small, portable nuclear reactors, because it is very, very expensive and logistically a real pain to get diesel and out to… operating bases and out to remote locations and in the Indo Pacific and northern Alaska to sustain operations on our bases,” an official said. “So you know, one of the things that we’re excited about doing in this bill is furthering that small, portable nuclear reactor effort by establishing a program of record and forcing the department to coordinate all the research and all the ideas for deployment.”

At the Senate background briefing, senior congressional officials said “the working group is a way to try to create a structure within the department to align senior officials to help promote and coordinate all the various activities.”

Officials at the briefing also said the NDAA would also authorize $34 billion for “defense aspects of the nuclear enterprise.” 

The annual NDAA, which is not an appropriations bill, sets policy and spending limits for defense agencies, including the NNSA, which is part of DoE. This year, the Streamlining Procurement for Effective Execution and Delivery (SPEED) Act, meant for expediting acquisition reform in the Department of Defense, would act as a “shell” for the NDAA, according to senior congressional officials.

Meanwhile, the Senate Armed Services Committee completed its closed markup of its version of the NDAA Friday and advanced the bill to the full Senate. The committee released the executive summary for the bill, but has not released the full text yet.

BREAKING: Noem Terminates Eastern Shipbuilding’s Work For Third And Fourth OPCs

Homeland Security Secretary Kristi Noem last Friday said she has canceled Eastern Shipbuilding Group’s work for the final two Offshore Patrol Cutters (OPCs) under the company’s contract with the Coast Guard for four of the medium-endurance cutters.

Citing performance issues, the Coast Guard had already issued stop work orders to the Panama City, Fla.-based shipbuilder for OPCs 3 and 4 and was exploring having another shipyard complete work on the two 360-foot vessels (Defense Daily, June 5). The Department of Homeland Security said that Eastern Shipbuilding had informed the Coast Guard that it could not complete work on all four ships “without and unabsorbable loss.”

In releasing Noem’s decision, DHS said Eastern Shipbuilding’s “wasteful shipbuilding contract” is being partially terminated “because it was not an effective use of taxpayer money.” The department highlighted that the first OPC was due in June 2023—the original contract called for delivery in 2021—and at best will now be delivered by the end of 2026 (Defense Daily, Sept. 28, 2018). The second ship was due in April 2024.

“This Administration is unwavering in its commitment to the American taxpayer and to a strong, ready Coast Guard,” a senior homeland security official said in a statement. “We cannot allow critical shipbuilding projects to languish over budget and behind schedule. Our Coast Guard needs modern, capable vessels to safeguard our national and economic security, and we will ensure every dollar is spent wisely to achieve that mission. This action redirects resources to where they are most needed, ensuring the Coast Guard remains the finest, most-capable maritime service in the world.”

DHS said the Coast Guard’s program of record of 25 OPCs remains intact. The Coast Guard in September 2016 awarded Eastern Shipbuilding a potential $2.4 billion contract to design and construct the first nine OPCs but two years later a severe storm forced the company to seek cost and schedule relief.

DHS in October 2019 granted that relief but limited the contract to four ships and reopened the program to competition for hulls five through 15. Austal USA in June 2022 won a potential $3.3 billion contract to build up to 11 OPCs in Stage 2 of the program, beginning with OPC 5.

The first four OPCs are all under construction at Eastern Shipbuilding. The cost and schedule relief applied to all four vessels.

In addition to Hurricane Michael, a Category 5 storm that slammed into Eastern Shipbuilding’s facilities in October 2018, the company was beset with workforce and supplier disruptions due to the COVID-19 pandemic, and an improperly designed main drive shaft supplied by Rolls-Royce that had to be removed (Defense Daily, Oct. 21, 2022).

HASC, SASC NDAAs Differ On Topline By Billions, Agree On Pursuing Major Acquisition Reforms

The House and Senate Armed Services Committees have proposed conflicting toplines in their respective versions of the next defense policy bill, with the latter adopting a $32.1 billion boost, while both panels have made major acquisition reforms a focal point of their legislation.

“We are very optimistic that the conditions are ripe to do some real acquisition reform,” a senior congressional official told reporters. “So we’re very hopeful that [the House’s] effort, combined with what the Senate’s doing and what the administration is doing, we’ll be able to break through the cultural impasse that’s been at the department for the last 30 or so years and really make some lasting reforms to what is a broken acquisition process.”

U.S. Senator Roger Wicker (R-Miss.) speaks during a Senate Armed Services Committee posture hearing at the Dirksen Senate Office Building in Washington, D.C., March 16, 2023. (DoD photo by U.S. Air Force Staff Sgt. John Wright)

Both panels released details of their fiscal year 2026 National Defense Authorization Act markups on Friday, which follows SASC advancing its version out of committee with a 26-1 vote on Wednesday and as HASC is set to mark up its legislation on July 15.

While HASC’s $848 billion topline largely adheres to the Trump administration’s FY ‘26 discretionary spending request for the Pentagon, SASC adopted a $32.1 billion increase to support an $878.7 billion topline for DoD in its NDAA. 

SASC’s topline boost included adding about $8.5 billion for shipbuilding, $6 billion more for munitions, about “a couple billion dollars” to each of the service’s unfunded priorities lists, adding 10 additional F-35As above the administration’s request and $2 billion more for military construction, according to a senior congressional official.

While SASC has only released an executive summary so far with high-level details of its defense policy bill, a senior congressional official told Defense Daily the full bill is expected to be filed early next week. 

Details on the NDAA proposals arrive after Congress last week passed the massive reconciliation bill that included $150 billion for defense, with the Trump administration including $113 billion of those funds to achieve its proposed $1 trillion FY ‘26 defense request (Defense Daily, July 3). 

“We had a very late budget submission. We didn’t have a lot of details. We were writing reconciliation in the dark. And there was massive misalignment in certain places with what the administration was expecting and what we did in reconciliation. So we’re trying to backfill that and make sure that we’re filling those gaps,” a senior congressional official said of the SASC NDAA. 

Sen. Roger Wicker (R-Miss.), the SASC chair, has previously pushed back on the administration’s use of reconciliation funds to reach the $1 trillion defense request, calling it a “sleight of hand” (Defense Daily, June 4). 

“There are some members of the administration who thought we would be delighted with the $1 trillion [defense topline request]. That’s not the way we viewed it. We need a steady increase in terms of the baseline [budget] year after year after year to get where we need to get,” Wicker has said.

Senior congressional officials in a briefing on SASC’s NDAA markup pointed to Wicker’s Fostering Reform and Government Efficiency in Defense (FORGED) Act, which was unveiled in December and laid out a series of sweeping acquisitions reforms, as a centerpiece of the panel’s legislation (Defense Daily, Jan. 6). 

“My colleagues and I have prioritized reindustrialization and the structural rebuilding of the arsenal of democracy. Accordingly, we have set forth historic reforms to modernize the Pentagon’s budgeting and acquisition operations,” Wicker said in a statement on Friday.

SASC’s summary of its NDAA notes “significant reforms” in the bill include repealing or amending more than 100 provisions “to streamline the defense acquisition process, reduce administrative complexity and remove outdated requirements, limitations and other matters” and amending the Joint Requirements Oversight Council to “refocus its mission on evaluating global trends, prioritizing joint operational problems, assessing military capabilities and integrating innovative solutions,” to include removing the JROC’s “validate” and “approve” authorities for service-level requirements.

The bill also directs a study on potentially establishing a a Joint Capabilities and Programming Board within DoD to bolster joint capability prioritization and budgeting, elevating the role of program executive officers to “portfolio acquisition executives” and granting them more authorities and directing the creation of “capstone requirements” to more flexibly move funds around for priority capability areas and create “continuous competition.”

Following the FORGED Act’s proposals to improve non-traditional defense contractors’ ability to work with the Pentagon, SASC’s NDAA includes provisions exempting some new entrants from certain defense business requirements “and requires that they be treated commercially unless a waiver is approved” (Defense Daily, Jan. 9).

On the HASC side, a senior congressional official told reporters that the NDAA incorporates the entire Streamlining Procurement for Effective Execution and Delivery (SPEED) Act proposed by Reps. Mike Rogers (R-Ala.) and Adam Smith (D-Wash.), the panel’s chair and ranking member.

Rogers and Smith have said the proposal is aimed at “blowing up the [acquisition] system” rather than making adjustments, with the official noting that the SPEED Act is “the shell” for bill “because it is the priority of the NDAA this year” (Defense Daily, June 24). 

“To ensure the military services can innovate and field capabilities faster, we need to fundamentally reform the Defense Acquisition System to cut red tape and deliver capabilities to U.S. service members as quickly as possible. Acquisition programs take too long to develop, produce, and become operational,” HASC Democrats wrote in a summary of the NDAA. 

“[The NDAA] reduces the complexity, cost and risk of doing business with the Department of Defense by establishing a new acquisition architecture based on five key pillars of reform: aligning acquisition to service members’ priorities and operational outcomes; accelerating the requirements process; finding a balance between the need for regulation and efficiency; strengthening the American industrial base and leveraging commercial innovation and developing a mission-oriented acquisition workforce,” the lawmakers added.

Sweeping acquisition reform proposals for the SPEED Act in the NDAA include overhauling the Joint Requirements Oversight Council, providing the military services more ability to flexibly budget around portfolio areas and establishing new offices to support more rapid decision making.

A senior Congressional official said the SPEED Act provisions in the bill aim to reform the requirements process, to include establishing a Requirements, Acquisition and Programming Integration Directorate (RAPID), so decisions can be made in about 90 days down from many months to years. 

The HASC NDAA also supports the establishment of the Bridging Operational Objectives & Support for Transition (BOOST) program, which seeks to attract new entrants to work with the Pentagon by helping promising technologies “survive the Valley of Death, creating a data-as-a-service model so that the U.S. military can access the data it needs to maintain its systems and creating an Industrial Resilience Consortium to address supply chain gaps and speed up the adoption of advanced manufacturing.”

“[The NDAA] calls for the overhaul of burdensome acquisition regulations that drive up costs and cause delays by exempting smaller programs from excessive regulatory burdens and seeks to eliminate the dual layer of complex cost reporting requirements to streamline regulatory compliance while preserving financial transparency,” according to the bill summary. 

A senior congressional official noted both HASC and SASC’s slight differences in acquisition reforms adopted from the two separate proposals, adding “that’s a conference issue for later.”

Authorizers Support New LSM Plan, Impose Vessel Construction Manager Strategy

The newly released House and Senate Armed Services Committee’s FY 2026 defense authorization bills both support the Navy’s latest strategy to move forward with a non-developmental design for the Medium Landing Ship (LSM) and also impose a different acquisition strategy.

Both versions of the authorization bill authorize procurement of different numbers of LSMs but agree the Navy should utilize a Vessel Construction Manager acquisition strategy for vessels two and beyond.

Concept design for the Navy’s Medium Landing Ship (LSM), featured in an April Congressional Budget Office (CBO) report. (Image: CBO)
Concept design for the Navy’s Medium Landing Ship (LSM), featured in an April 2024 Congressional Budget Office (CBO) report. (Image: CBO)

A Vessel Construction Manager acquisition strategy entails having the Navy select a manager to then make the decisions on who will be the vendor to build the vessel. This strategy has had significant success for Maritime Administration (MARAD) in its National Security Multi-Mission Vessels (NSMV).

In that case, MARAD used TOTE Services, which selected the Philly Shipyard to build the NSMVs.

Now lawmakers are set to push the Navy to use this acquisition strategy for the LSM after its previous rocky start.

While the Navy previously planned to use a new vessel that included a blend of military and commercial shipbuilding specifications, it is now pushing to start with what it calls LSM Block 1 as a non-developmental design based on the Israeli Logistics Support Vessel (ILSV) design, itself based on the U.S. Army’s Frank S. Besson-class of logistics support vessels. 

In April, Lt. Gen. Eric Austin, Deputy Commandant, Combat Development and Integration, confirmed requirement creep made the original LSM concept unaffordable and, following LSM Block 1, the Navy seeks to decide on the subsequent design that multiple shipyards could build, dubbed LSM Block Next (Defense Daily, April 30).

At the time, Austin said the services think it will take about four to five years from contract award to being in the water for delivery.

The House Armed Services Seapower subcommittee’s mark of the bill would direct the Secretary of the Navy to “seek to enter into an agreement with an appropriate vessel construction manager,” who shall then seek to enter into one or more contracts for no more than eight LSMs past this initial design.

Moreover, the draft bill says the additional LSMs can only be additional non-developmental items either using the same design as the lead ship or “derived from such design.”

Similarly, the Senate Armed Services’ Committee’s FY ‘26 defense authorization bill approves a similar provision, according to the executive summary of the chairman’s mark released on July 11.

U.S. Army Vessel (USAV) General Frank S. Besson (LSV-1) from the 7th Transportation Brigade (Expeditionary), 3rd Expeditionary Sustainment Command, XVIII Airborne Corps, departed Joint Base Langley-Eustis en route to the Eastern Mediterranean on March 9, 2024.
U.S. Army Vessel (USAV) General Frank S. Besson (LSV-1) from the 7th Transportation Brigade (Expeditionary), 3rd Expeditionary Sustainment Command, XVIII Airborne Corps, departed Joint Base Langley-Eustis en route to the Eastern Mediterranean on March 9, 2024. (Photo: U.S Central Command)

The Senate version requires using the Navy’s LSM program to use the Vessel Construction Manager acquisition strategy. The summary said the Navy must “use commercial design standards, construction practices and an external entity to contract for construction.” 

The Senate side also authorizes a bloc buy for up to 15 LSMs “to support testing and experimentation of the Marine Littoral Regiment formation.”

The Marine Corps previously said it wants 35 LSM-type vessels to transport the Marine Littoral Regiment, but it earlier settled on an initial 18 vessels, with the remainder to be other vessels with at least similar capabilities, like the leased Stern Landing Vessel or Spearhead-class expeditionary fast transport ships used to test LSM concepts.

A 2024 Congressional Budget Office report argued the previous LSM design standard would likely cause it to be two to three times more expensive than the Navy’s initial estimate of $150 million per hull, which was later proven correct when the solicitation was canceled due to expensive bids (Defense Daily, April 12, 2024).

The new Navy strategy, now backed up by authorizers in Congress, is to procure a vessel with similar capability faster and for cheaper but not letting expensive military specifications cause costs to balloon.