Analysis & Reports

The U.S. Army Corps of Engineers awarded a $74.8 million contract to Conti Federal Services for the construction of a new hangar for the B-21 Raider stealth bomber at Whiteman Air Force Base, Missouri. The facility will support one B-21 aircraft and is expected to be completed by September 25, 2029. This hangar is part of the broader effort to enhance the Air Force's bomber fleet capabilities.

The U.S. Air Force awarded $149 million in contracts to four manufacturers for the production of metal cases for large bunker-busting bombs. The contracts, which involve Superior Forge and Steel, Ellwood National Forge, Faxon Machining LLC, and Grand Valley Manufacturing, are expected to be completed by September 7, 2033. This production supports the Air Force's existing GBU-57 Massive Ordnance Penetrator and the development of the Next Generation Penetrator.

The U.S. Army awarded Northrop Grumman a $4.84 billion contract for the production of the Common Infrared Countermeasures system (CIRCM) on September 8, 2023, at Redstone Arsenal, Alabama. This new laser-based system is intended to enhance helicopter defense against heat-seeking missiles. The contract is set to run until September 30, 2035, and includes provisions for the system's use on allied aircraft, including Germany's CH-47 Chinook fleet.

Machina Labs is set to expand its manufacturing capabilities in Los Angeles with a new facility aimed at producing missile components and airframes using AI and robotics. The Pentagon is addressing a skilled trades crisis, highlighting the need for 320,000 new welders by 2029, and has awarded a $10 million grant to BuildFreedom.us to enhance workforce training. Additionally, oversight of defense articles abroad is being improved following inconsistencies in investigations.

The Pentagon is expanding the use of the Maven Smart System for logistics, force readiness, and supply chain management in Washington, D.C. The system has replaced several IT systems and is being integrated with AI tools to enhance decision-making. Recent changes have also shortened procurement timelines, allowing for faster vendor selection. The Department of Defense is working with allies to improve their AI capabilities.

Approximately 2500 Canadian Armed Forces members participated in Exercise MAPLE RESOLVE 21 in Wainwright, Alberta, from May 1 to 11, 2021. The exercise tested soldier skills in a complex combat environment. Concurrently, trade tensions escalated as Canada imposed counter-tariffs on U.S. goods, prompting a U.S. response with bans on Canadian products, highlighting a potential breakdown in trust between the two nations.

The Pentagon requested to reprogram $1.5 billion in funding for high-priority AI initiatives and the MV-75 Cheyenne tiltrotor program. This includes $600 million for a top-secret AI compute center and $230 million for the tiltrotor's research and development. The reprogramming aims to address funding shortfalls that could impact military operations and employment within the defense industry. Additionally, $18 million is allocated for Army drones and $36 million for counter-UAS technology.

The U.S. Navy terminated the A-12 Avenger II program in January 1991 due to technological failures and a fixed-price contract that did not account for the immature technology required. The program, which aimed to develop 8 aircraft and 4 test articles, resulted in no flyable aircraft and significant financial losses. This cancellation is viewed as a critical factor in the decline of McDonnell Douglas and has led to ongoing financial issues for Boeing due to similar contracting practices.

The U.S. Department of Defense updated its physical fitness policy on August 31, 2023, designating over 80 military occupations as combat arms, requiring them to complete a new combat field test. This includes various branches such as the Army, Navy, Marine Corps, and Air Force, with specific tests tailored to each service. The changes aim to establish sex-neutral standards and may impact personnel who fail to meet the new requirements.

Poseidon Aerospace raised $60 million in funding to develop unmanned cargo aircraft, specifically the Egret model, aimed at enhancing logistics for both commercial and defense sectors. The company, headquartered in Alameda, California, plans to operate its own cargo flights to serve remote routes and support Defense Department logistics. The first uncrewed flight of Egret is anticipated by the end of 2026.

China's navy has expanded to 350 ships, surpassing the US's 293. By 2030, China plans to increase its fleet to 435 ships, while the US aims to add 58 ships by 2031. The US Navy struggles with maintaining fleet readiness, with projections showing a readiness rate of only 68% by 2025. High costs and outdated regulations hinder US shipbuilding efforts.

The White House announced a new National Space Transportation Policy on August 20, 2023, aiming for over 1,000 U.S. space launches annually by 2030. This policy emphasizes expanding launch capacity and interagency collaboration among the U.S. Space Force, Department of Defense, and NASA. Experts have raised concerns regarding the funding and infrastructure needed to achieve these ambitious goals.

Two C-130 cargo planes arrived at Lackland Air Force Base on August 25, 2023, to serve as training platforms for new recruits in Basic Military Training. The planes will provide hands-on experience in airfield operations, including cargo loading and aircraft refueling. This transition marks the end of their flying career, as they will no longer participate in active missions.

AeroVironment received its first international order for the LOCUST laser weapon system on September 8, valued at over $50 million. The order includes an initial batch of systems and support services, highlighting the growing recognition of high-energy laser systems in modern air defense. The LOCUST system is designed to counter drone threats and is part of AeroVironment's expansion efforts in Albuquerque, New Mexico.

The U.S. Navy faces significant challenges in building nuclear-powered warships due to capacity constraints and labor shortages at its two shipyards in Virginia and Connecticut. The delivery of the future USS Doris Miller has been delayed to 2034, and the Navy is struggling to meet its submarine production requirements. Meanwhile, China continues to launch new aircraft carriers at a rapid pace, highlighting the widening gap in naval capabilities.

The U.S. Navy is facing a significant shortfall in its submarine fleet as it retires Los Angeles-class submarines without adequate replacements. The decision to retire the USS Boise reflects broader issues in the Navy's shipbuilding capacity and the long-term consequences of reducing the Seawolf-class program to just three submarines. As of late 2025, the Navy struggles to meet operational demands with insufficient Virginia-class production.

The United States Marine Corps is offering enlistment bonuses of up to $15,000 for recruits in electronic maintenance and cyber operations as part of its efforts to enhance its cyber and electronic warfare capabilities. This initiative is outlined in the FY2027 Enlistment Option Program, which aims to attract talent and expand the force by 6,500 billets by 2031. The program includes additional bonuses for recruits who allow the Corps to determine their shipping dates for training.

Sierra Space signed contracts to fly national security and commercial payloads aboard the Dream Chaser spaceplane's first mission, launching from Kennedy Space Center and landing at Vandenberg Space Force Base. The mission, expected to demonstrate capabilities in orbit, combines various payloads, marking a significant step in operational models for space transportation. The Dream Chaser is designed for multiple uses and aims to enhance national security capabilities.

U.S. Marines with the 13th Marine Expeditionary Unit conducted a training exercise at Camp Pendleton, California, demonstrating new operational capabilities from two forward operating sites. They tested tracking ships at sea and directing combat operations while maintaining aircraft readiness. The exercise highlighted the importance of logistics and coordination between land and sea units, reflecting a shift in Marine Corps strategy since 2019.

XTEND deployed its first AtlasROVER ground robot to a customer in the Asia-Pacific region in 2026. This deployment marks a significant step in integrating ground robotics into XTEND's XOS software platform, which previously focused on aerial drones. The company aims to create a unified software layer for various robotic platforms, enhancing operational capabilities across air, ground, and maritime systems.