This Tuesday INSIDER Daily Digest has news on a Defense Department inspector general's report on munitions shortfalls in the war with Iran, plus the Pentagon overhauling its contractor pricing oversight and more. The Defense Department inspector general released a report this week that offers one of the Pentagon's most direct acknowledgments to date of the strain the war with Iran has placed on U.S. weapons inventories and the industrial base needed to replenish them: DOD acquisition office tells watchdog Epic Fury caused 'shortfalls' in key munitions The office of the Defense Department's acquisition chief says the massive expenditure of munitions during Operation Epic Fury in Iran has "resulted in strategic inventory shortfalls" and exposed bottlenecks in the defense industrial base that could take significant time to overcome, according to a new report from the DOD inspector general. DOD will rely on market forces to set prices where competition, comparable sales or reliable price histories exist, while using cost and pricing information already maintained by contractors when no market exists: Feinberg orders overhaul of Pentagon pricing, profit and contractor oversight Deputy Defense Secretary Steve Feinberg is directing the Pentagon to overhaul how it determines contractor prices and profits while sharply curtailing government-unique accounting and audit requirements, arguing the existing system has limited competition, raised prices and discouraged companies from doing business with the department. The Army's acting top uniformed official spoke this morning at the Maneuver Warfighter Conference at Ft. Benning, GA: LaNeve touts network, autonomy and drone modernization to kick off maneuver conference Acting Army Chief of Staff Gen. Christopher LaNeve today made clear the service under his leadership is continuing to modernize and draw lessons from global conflicts in the face of recent speculation about jeopardized initiatives and deactivation of an experimental European drone battalion. The latest coverage from this week's AFA Air, Space and Cyber conference: Lockheed developing OCX replacement under multiple contracts totaling $219M NATIONAL HARBOR, MD -- Lockheed Martin is working under multiple contracts totaling $219 million so far to rapidly field upgrades for the Space Force's GPS III ground system, a company executive told Inside Defense , after the service canceled the long-beleaguered OCX contract with RTX. Air Force to 'power on' VC-25B this year, first flight set for 2027 NATIONAL HARBOR, MD -- Boeing has made significant progress on the beleaguered VC-25B Air Force One replacement program, a top Air Force official said yesterday, putting it on track to power on the first of two jets by the end of this year. Space Force has space control weapons on orbit, Meink reveals NATIONAL HARBOR, MD -- The Space Force has weapons on orbit able to attack adversary systems, Air Force Secretary Troy Meink revealed today in remarks that also included an update on space-based moving target indication. Two AGM-190A Havoc Spear munitions were used to strike two “validated” ground targets in an operational combat evaluation this spring: AFSOC used Havoc Spear munition to take down real targets in the spring Air Force Special Operations Command "successfully" fired its still-in-development, small cruise missile from an AC-130J Ghostrider during combat operations in the U.S. Africa Command region, according to service leaders.
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