Analysis & Reports

Northrop Grumman secured a $1.84 billion contract to produce and sustain the LITENING targeting system, which will support U.S. military operations through 2035. The contract allows for additional orders and upgrades without renegotiation, ensuring continued use of this critical targeting technology across various aircraft. The LITENING pod enhances pilots' ability to identify and engage targets from a safe distance.

In 2022, the U.S. Navy sold the retired aircraft carriers USS Kitty Hawk and USS John F. Kennedy for one cent each, reflecting the high costs associated with dismantling such vessels. The ships were towed to Brownsville, Texas, where they were methodically dismantled for scrap. This sale illustrates the transition from conventionally powered supercarriers to modern naval warfare, emphasizing the logistical challenges of military asset disposal.

The Royal Navy's two Queen Elizabeth-class aircraft carriers, HMS Queen Elizabeth and HMS Prince of Wales, have faced significant mechanical failures, including propulsion issues. HMS Queen Elizabeth withdrew from NATO exercises in early 2024, and sailors reported a lack of reliable hot water, forcing some to live ashore. These issues highlight ongoing logistical challenges within the Royal Navy.

The Space Force has initiated a $981 million contract pool involving 15 vendors to enhance training capabilities over the next five years. This effort aims to address significant gaps in instructors, facilities, and simulators necessary for key mission areas. The initiative is part of the National Space Test and Training Complex (NSTTC) and reflects growing concerns among senior officials regarding the adequacy of training resources as the force expands.

The U.S. Air Force's F-35A, despite being a newer aircraft, has an average availability comparable to that of a 36-year-old F-16C/D. The flyaway cost for the F-35A is reported at $82.5 million, with operational costs significantly higher than those of the F-16. The F-35 program is projected to cost $2.1 trillion, raising questions about its value relative to its advanced capabilities.

The U.S. Air Force faces significant cost and schedule risks in upgrading the B-52 Stratofortress bombers, with a projected $21 billion for 13 upgrades. Key efforts, including the engine replacement and radar modernization, are experiencing budget overruns and delays, potentially impacting operational capabilities. The Government Accountability Office has issued recommendations to address these challenges.

The U.S. Air Force operates 179 F-22 Raptors, which cost approximately $85,325 per flight hour. The total program cost is around $33.2 billion, with maintenance and operational expenses being significantly high. The F-22 remains a critical asset despite its high costs, especially in the context of great-power competition with Russia and China.

American Rheinmetall has been awarded an 18-month contract to provide autonomous uncrewed ground vehicles for the U.S. Army's Project Sustainment. These vehicles are designed to autonomously transport supplies, enhancing operational efficiency and reducing risk to soldiers. The project involves collaboration with partners such as Harbinger and Forterra, focusing on advancements in logistics and military operations.

The US Navy dismantles retired aircraft carriers in Brownsville, Texas, where they are recycled for steel. This process involves strict environmental regulations and reflects the end of service for many significant vessels, including the USS Kitty Hawk and USS John F. Kennedy. Brownsville has become the largest commercial ship recycling hub in the US, marking the transition from old naval power to the next generation of supercarriers.

The U.S. Air Force's F-22 Raptor fleet's mission-capable rate has dropped to 40.19 percent in fiscal 2024, prompting concerns over readiness. The Air Force has 184 F-22s, including 32 older Block 20 models that Congress has blocked from retirement. Upgrading these Block 20s is projected to cost at least $3.3 billion and take about 15 years, complicating the Air Force's operational capabilities amid increasing global demands.

The F-35 program is experiencing significant readiness issues, with the fleet's mission-capable rate dropping to 25% as of July 31, 2026. The U.S. Air Force is addressing these challenges through a proposed $13.7 billion sustainment reset. Key issues include delays in Block 4 modernization and insufficient power and cooling capacity for future upgrades. Locations involved include Columbus, Ohio, Jacksonville, Florida, and Santiago, Chile.

Kratos Defense & Security Solutions completed the Indiana Payload Integration Facility for hypersonic systems in Crane, Indiana, on July 28, 2026, ahead of schedule. The $50 million facility is designed to enhance the U.S. military's hypersonic testing capabilities by allowing rapid preparation of experimental payloads. It is expected to create over 100 high-tech jobs and is part of a broader strategy to build defense manufacturing infrastructure in the region.

The U.S. Air Force announced that operational testing of M-code chip cards for military platforms will conclude by fiscal 2027. Up to a million receivers are needed across various services, including the Army, Navy, and Air Force. The M-code program has faced delays, but the Army has already fielded nearly 4,000 receivers to operational units. Testing continues for platforms like the Gray Eagle UAV and F-16 aircraft, with significant logistical efforts underway to ensure readiness.

The U.S. Army Reserve successfully tested the DropShip aircraft during a logistics exercise on June 30, 2026, completing a 32-km autonomous resupply mission from Gulfport to Diamondhead, Mississippi. The aircraft, capable of carrying 249 kg of supplies, demonstrated its ability to operate from austere locations and conducted a precision airdrop. This marks a significant advancement in military logistics capabilities, allowing for resupply missions in contested areas without risking human pilots.

The U.S. Navy is set to change its physical training (PT) uniform by 2027, transitioning to navy blue-on-blue shorts and shirts with gold logos, based on sailor feedback. This new uniform aims to be more modern and functional, enhancing morale during physical training. Additionally, the Navy is reviewing its issued boots and the number of dress uniforms to streamline options for personnel.

The U.S. Navy awarded contracts totaling $76.6 billion for the construction of five Columbia-class and nine Virginia-class submarines. This investment aims to enhance undersea superiority and replace aging Ohio-class submarines. The Columbia-class is expected to surpass the capabilities of its predecessor, while the Virginia-class continues to support special operations. Construction began in 2020, with the first Columbia-class submarine delivery now scheduled for 2028 due to delays.

The U.S. has significantly depleted its Patriot missile inventory during the conflict with Iran, leaving fewer than 1,000 interceptors available. This drawdown raises concerns about readiness for future conflicts, as the U.S. and its coalition partners may need to prioritize high-value threats. The Pentagon has initiated a contract to produce new interceptors, but rebuilding stockpiles will take several years, creating a near- to medium-term risk.

USS Enterprise ran aground in San Francisco Bay on April 28, 1983, while attempting to return to Naval Air Station Alameda. The nuclear-powered aircraft carrier, 3,000 feet from the pier, settled in shallow water after missing the dredged channel. Captain Robert J. Kelly accepted responsibility for the incident, which resulted in no injuries and minimal damage to the vessel.

L3Harris postponed the IPO of its missile solutions unit until mid-2027 due to market undervaluation and uncertain conditions. The company continues to invest in production facilities for solid rocket motors and missile components, responding to increasing demand from the Defense Department. L3Harris is currently negotiating contracts worth over $20 billion, which would significantly increase its backlog.

USS Enterprise struck Bishop Rock at Cortes Bank, California, on November 2, 1985, during a readiness exercise, resulting in a 40-foot gash and the temporary loss of 24 aviation-fuel tanks. The incident caused $17 million in damage and required six weeks of repairs. Despite the flooding, the carrier resumed training after a one-day inspection and returned to Alameda on November 23, 1985.