Military, Veterans and Defense Industry Issues and Analysis

May 7, 2012

Markup in the House on the NDAA is this week while the push continues to drop the ‘D’ from PTSD in hopes of destigmitizing the affliction by the Army. DigitalGlobe has rejected the buyout offer from GeoEye over the weekend, preferring to wait and see what the budget actually looks like. Secretary Panetta himself is weighing in with the troops to stop the stream of embarrassing incidents that have occurred and threaten the military mission in Afghanistan. All in all, an interesting week.

The Scout Report is a weekly analysis of the news in the aerospace, defense and veterans sectors and is emailed each Monday morning. Follow us on Twitter @ScoutComms to get your news fix all week. Subscribe yourself for free here right now!

The week ahead:

Themes:  The buzz this week will be about the House Armed Services Committee moving to the markup phase of the National Defense Authorization Bill as the battle between the White House and the GOP led House gets new life on this critical step towards a new budget.  The Senate follows suit in two weeks. It’s not too late to sign up for the Milblogger conference and see our own Fred Wellman moderate a panel on social media with reps from all of the services.

Tradeshows: 

SOFEX 2012 (Mon-Thurs, 7-10 May) Amman, Jordan

SOFEX is the premier international tradeshow and conference focused on special operations and homeland security missions and equipment hosted by the Jordanian government.  It is well attended each year with a host of international firms sponsoring events and major attendees from various special operations organizations.  It will be interesting to see how this year’s show goes in light of the continuing unrest in Syria and Egypt.

Big Data Conference (Tue-Wed, 8-9 May) Arlington, Virginia

The conference focuses on managing the massive data load that today’s military deals with from intelligence to cyber threats and finding ways to better mine that information for national security.  The speaker list is pretty impressive for those in the data management sectors.

Congress: The full Congress is in session this week.

Senate:

Senate Armed Services Committee – Hearing (3:00 PM, Tues, 8 May)

Airland Subcommittee hearing on tactical aircraft programs in review of the Defense Authorization Request for FY2013 and the Future Years Defense Program.

Witnesses:   Navy Vice Adm. David Venlet, program executive officer for the F-35 Lightning II Program; Air Force Lt. Gen. Janet Wolfenbarger, military deputy in the Office of the Assistant Secretary of the Air Force for Acquisition; and Navy Vice Adm. Walter Skinner, principal military deputy in the Office of the Assistant Secretary of the Navy for Research, Development, and Acquisition, testify

Location:  232-A Russell Senate Office Building

 

Senate Armed Services Committee – Hearing (10:00 AM, Thurs, 10 May)

Readiness and Management Support Subcommittee hearing on the current readiness of U.S. forces in review of the Defense Authorization Request for FY2013 and the Future Years Defense Program.

Witnesses: Gen. Lloyd Austin III, vice chief of staff of the Army; Adm. Mark Ferguson III, vice chief of naval operations; Gen. Joseph Dunford Jr., assistant commandant of the Marine Corps; and Gen. Philip Breedlove, vice chief of staff of the Air Force, testify

Location:  232-A Russell Senate Office Building 

House of Representatives: 

House Veterans’ Affairs Committee – Hearing (10:30 AM , Tues, 8 May)

Military Construction, Veterans Affairs, and Related Agencies Subcommittee markup of the FY2013 Military Construction and Veterans Affairs Appropriations bill.

Witnesses: N/A

Location:  H-140, U.S. Capitol

House Appropriations Committee – Hearing (11:30 AM, Tues, 8 May)

Military Personnel Subcommittee markup of H.R.4310, the “National Defense Authorization Act for FY2013.”

Witnesses:  N/A

Location:   2212 Rayburn House Office Building

House Armed Services Committee – Markup (10:00 AM, Wed, 9 May)

Full committee markup of H.R.4310, the “National Defense Authorization Act for FY2013.”

Witnesses:  N/A

Location: 2118 Rayburn House Office Building

Think tanks and other news events: 

Center for American Progress: The Future of Military Compensation: Equity vs. Affordability Washington, D.C. (10:00 AM, Mon 7 May)

Description: Military personnel costs have nearly doubled since fiscal year 2001 and now consume one-third of the Pentagon’s base budget—about $180 billion per year. A panel of experts will discuss the Pentagon’s proposed changes and the new CAP report, and debate the proper cost-sharing balance between military service members, retirees, veterans, and taxpayers. RSVP online.

Participants: Vice Admiral Norbert R. Ryan Jr. (ret.), President, Military Officers Association of America, Major General Arnold L. Punaro (ret.), CEO, Punaro Group, LLC; member, Defense Business Board, and Michael J. Bayer, CEO, Dumbarton Strategies; former Chairman, Defense Business Board

Location: 10th floor, 1333 H Street NW, Washington, D.C., 20005

SIPRI North America: Decline of Armed Conflict: Will It Continue?  Washington, D.C. (12:30 PM, Mon 7 May)

Description: There is a prevalent public perception that the world has become a more violent place. However, many leading experts agree that there has been a decline of violence and war since 1989. To expand upon these findings and explore their future implications, SIPRI North America will convene a roundtable discussion with two leading experts in the peace and conflict field. RSVP online.

Participants: Dr. Sissela Bok, Board Member, SIPRI North America and Senior Visiting Fellow, Harvard Center for Population and Development Studies, Dr. Joshua S. Goldstein, Professor at the School of International Service, American University, and Dr. Peter Wallensteen, Dag Hammarskjöld Professor of Peace and Conflict Research, Uppsala University

Location: 12th floor, 1111 19th Street NW, Washington D.C., 20036

Center for American Progress: Mind Wars: Brain Science and the Military in the 21st Century 

Washington, D.C. (12:00 PM, Tues 8 May)

Description: Mind Wars covers the ethical dilemmas and history of cutting-edge technology and neuroscience developed for military applications. As the author, Jonathan Moreno, discusses the innovative DARPA and the role of the intelligence community and countless university science departments in preparing the military and intelligence services for the 21st century, he also charts the future of national security. RSVP online.

Participants: Jonathan Moreno, author, Mind Wars; Senior Fellow, Center for American Progress, moderated by PJ Crowley, former State Department Assistant Secretary for Public Affairs

Location: 10th floor, 1333 H Street NW, Washington, D.C., 20005

Stimson Center: What Kind of Defense Budget Would the American Public Make?

Washington, D.C. (10:00 AM, Thurs 10 May)

Description: What would average Americans do if they were informed about the level and purposes of US defense spending and had a chance to weigh the arguments that experts make? Would they boost overall funding, or cut it? Would they spend more on air power or sea power? How much would they say the US should spend on nuclear arms? On major ground forces? On special forces? Most polls simply ask whether defense spending should be cut or not. But three organizations ­collaborated on a more useful survey. They provided a representative sample of the American public neutral information about how funds are currently being spent, and exposed them to the various arguments made by advocates in the contemporary debate on whether defense should be cut. The respondents then said what they wished to spend in key areas. RSVP online.

Participants: Steven Kull, Director of the Program for Public Consultation, Matthew Leatherman, Analyst, Stimson’s Budgeting for Foreign Affairs and Defense project, R. Jeffrey Smith, Managing Editor for National Security, Center for Public Integrity

Location: 12th floor, 1111 19th Street NW, Washington D.C., 20036

Center for Strategic and International Studies: Treasury’s Role in National Security

Washington, D.C. (10:00 AM, Thurs 10 May)

Description: A discussion with David S. Cohen, Under Secretary for Terrorism and Financial Intelligence, U.S. Department of the Treasury. As under secretary, he leads the department’s policy, enforcement, regulatory, and intelligence functions aimed at identifying and disrupting the lines of financial support to international terrorist organizations. In this role, he serves as a member of the Obama administration’s national security team in developing financial strategies to combat these wide-ranging threats and protect the U.S. and international financial systems from abuse. RSVP online.

Participants: The Honorable David S. Cohen, Under Secretary for Terrorism and Financial Intelligence, U.S. Department of the Treasury

Location: B1 Conference Room, 1800 K Street NW, Washington D.C., 20006

Military.com 2012 Milblog Conference Arlington, VA (Fri-Sat, 11-12 May)

Description:  Milblogcon is the only gathering of military bloggers each year and includes the awards of the “Milbloggies” Friday night before the all day conference focusing on milbloggers, policy and current issues they face telling their stories to the world. There are a host of interesting panels this year and ScoutComms’ Fred Wellman is moderating the DoD and Social Media panel.

Participants: Jamie McIntyre, (NPR), Jim Dao (NY Times), Greg Jaffe (Washington Post) Austin Wright (Politico.com), Rick Maze (Military Times Newspapers), VADM Norbert R. Ryan, Jr., USN-Ret (MOAA), Tom Tarantino (IAVA), Brandon Friedman (VA), Terry Howell (Military.com), Kristle Helmuth (Author: The Story of a True American Hero, His Princess, and their Struggle with TBI/PTSD), Chazz Pratt (USAA), Mike Brinck (House Veterans Affairs Committee for the Economic Opportunity subcommittee), Frederick P. Wellman, Moderator (ScoutComms), LCDR Chris Servello (Navy), Brittany Brown (Army) Mark Fayloga (Marine Corps), Chris Lagan (Coast Guard), Jacey Eckhart (SpouseBUZZ), Alex Horton (VA), Matthew Burden (Blackfive), JP Borda (Milblogging.com), Matt Gallagher (IAVA), Tara Crooks (Army Wife Network- Loving A Soldier, USAA), and 1st Lt. Hannah He (US Army)

Moves in the Defense Media:

McClatchy Changes: Longtime McClatchy Pentagon correspondent Nancy Youseff will leave and head to Cairo to be bureau chief.  She will replace Hannah Allam who comes to D.C and takes over at the Pentagon for her first assignment inside the building after covering the military beat for many years in Iraq and around the globe. We wish both of them the very best of luck!

The Pentagon Press Association elected a new slate of officers last week:

President: Bob Burns, AP (Burns succeeds McClatchy’s Nancy Youssef, who is heading to Cairo); Vice President: Kevin Baron, National Journal; Secretary: Luis Martinez, ABC; Member-at-Large: Barbara Starr, CNN 

Major themes and issues from last week: 

Veterans and Military Issues:

New name for PTSD could mean less stigma

Greg Jaffe, Washington Post

The Army is leading a push to change the name of Post Traumatic Stress Disorder to drop the D and call it Post Traumatic Stress Injury.  The basic theory driving this change is that it will help destigmitize the illness in hopes of encouraging more military members and veterans to seek help for their mental health challenges.  The idea has met with some resistance among psychiatrists and others who say the medical definition should not be changed because of perceived stigma associated with the illness but only if a name change reflects that actual sickness.  The American Psychiatric Association is set to update its manual of mental illnesses for the first time since 2000 this year and this issue has been a major point of controversy.  Many veteran critics of the change point to the fact that just calling it an injury doesn’t change the military culture that still doesn’t tolerate perceived weaknesses. Many NCO’s and officers will muddle through with back problems and bad knees for years to continue their careers and question how PTSI will be any different.

Veterans Crisis Line averting suicide via text

Leo Shane III, Stars and Stripes

The VA launched another angle on its crisis hotline in February with the addition of text message counseling for veterans in crisis.  @LeoShane visited the center in New York to see firsthand how this new approach is building slowly as the word gets out and the value it adds to the traditional phone calls and online chats already in use. The story offers an interesting insight into the newest tool in the suicide prevention toolkit for the VA.  Incidentally, if you or someone you know is in crisis, encourage them to call 1-800-273-8255 for help.

VA mental health hiring is flawed, critic says

Patricia Kime, Army Times

An official from the American Counseling Association is calling the VA to task for its failure to hire licensed professional counselors to fill the gaps in mental health care for veterans.  The VA has not used professional counselors in the past, relying on physiatrists, psychologists and nurses while it struggles to fill hundreds of vacancies in its capacity.  There is hope of change as the VA recently announced that LPC’s would be part of its planned hiring of 1900 new mental healthcare providers but many remain skeptical as job postings and actual hiring’s lag.

Post-9/11 Veteran Unemployment Rate Still Falling; at 9.2 Percent

Brandon Friedman, VAntage Point Blog, VA

The monthly jobs numbers from the Department of Labor showed that the unemployment rate for OIF/OEF vets from 18-24 fell this month a full percentage point to 9.2%.  Brandon Friedman at VA has been keeping a chart mapping a linear progression to even out the wild swings in the numbers due to the small statistical pool Labor draws from and it continues to show a downward slope for young veteran unemployment.  While there is still a ways to go it’s clear that progress is being made either as veterans find work or leave the work force to go to college on their GI Bill benefits.

Military, Budget and Industry Issues:

Helicopter industry adjusts to new reality

Bob Cox, Ft. Worth Star-Telegram

The American Helicopter Society held their annual meeting in Ft. Worth last week and it seems the key word on everyone’s lips was ‘affordability’ in every pitch.  The industry faces a remarkably flat cycle of buying from its U.S. Army and Marine customers with little change seen on the horizon.  Just like every aspect of the defense industry the helicopter market will be flat for the coming years even as new aircraft are needed and old airframes are kept in service far longer than previously anticipated.

DigitalGlobe rejects $792 million buyout offer from Herndon-based GeoEye

Steve Overly, Capital Business, Washington Post

There was a bit of buzz on Friday when GeoEye made a buyout offer for competitor in the satellite imagery business, DigitalGlobe for $792 million.  The offer was rejected formally on Sunday after a flurry of negotiations that have included GeoEye being the company being bought out in a 60-40 split of the companies.  Instead, DigitalGlobe will hold its cards and wait to see what the actual budget shakes out with before making any moves. The two companies share the EnhancedView contract that provides imagery to the U.S. government.  Major cuts to the program were submitted to Congress but the final bill is still far from set.

The Jet That Ate the Pentagon

Winslow Wheeler, Project on Government Oversight

Wheeler has been making a name for himself for years as a former defense official with a passion to reform the military’s acquisition and budget process.  He is out here with an excoriating analysis of the F-35 program and it’s many problems.  The Joint Strike Fighter will account for fully 38% of the DoD’s procurement budget and is supposed to replace nearly all of the combat aircraft in the U.S. inventories when it’s finally produced in large numbers.  Wheeler rehashes a number of criticisms of the aircraft from its odd simultaneous procurement plan while it is still being tested to its failings as a combat platform in all modes.  It’s a fascinating, and depressing, read.

Military Airships: Hot Air or Soaring Promise?

David Axe, AOL Defense

Axe has a great comprehensive look at this fascinating sidebar of development occurring surrounding airships which last saw service in the 1960’s but with the demand for long-endurance, low-cost aerial surveillance platforms in combat there has been a new focus on these unique flying machines.  Right now the military uses a few dirigibles tethered above U.S. combat bases to monitor the surrounding areas.  Several companies have developed prototypes and designs of systems that will be able to land like a helicopter but haul tens of thousands of pounds of supplies to remote locations in addition to the current surveillance missions.  Its an interesting look for this 75th anniversary of the explosion of the Hindenburg.

Social Media and Communications Issues:

Defense Secretary Leon Panetta warns troops about misconduct

Brian Bennett, LA Times

Secretary of Defense Panetta was blunt in his talk to soldiers at Ft. Benning this past week telling them to stop making poor judgments that undermine the mission of the United States in Afghanistan and around the world.  Recent scandals surrounding photos and videos of troops misbehaving in combat have forced leaders in the military services to place renewed emphasis on discipline and professionalism in the ranks.  Panetta made it clear that in this time a photo from the battlefield can be front-page news in a matter of minutes in this plugged in social media world.

Wife Skyping with soldier saw bullet hole in wall

Terry Wallace, Associated Press

In a bizarre story this week it was reported that a soldier serving in Afghanistan died while on Skype with his wife at home.  The family’s initial statement was very vague about the circumstances of his death, which was reported to have taken some time and led to rampant speculation he had committed suicide.  A story late Sunday was aimed to dispel that theory as a statement from the family detailed that he suddenly fell forward and what appeared to be a bullet hole appeared in the closet behind him on camera.  The Army for its part is sticking to its official line that the death is under investigation.  It truly illustrates how different things are today that a soldier can be in combat thousands of miles from home but plugged in as if across town instead.

Other Items of Interest:

Man arrested in $100M Navy vet charity scam

Thomas Sheeran, Associated Press

After a three-year man hunt the founder of a Florida based non-profit calling itself the U.S. Navy Veterans Association was captured in Portland, Oregon.  The authorities have no idea what his real name is but he is accused of stealing almost $100 million from donors and having done little that he promised with the money.  He has been on the run and was finally caught with backpacks of cash totaling nearly a million dollars.  It’s a cautionary tale on the proliferation of non-profits promising to help veterans and military members that have sprung up in the last decade often led by criminals looking to make easy money from the country’s desire to help our veterans.

After War Room, Heading Ivy League Classroom

Elisabeth Bumiller, New York Times

There are a number of retired general officers and others now serving in the classrooms as instructors at a number of Ivy League schools these days as the civil-military gap looms large on many peoples minds.  Stanley McChrystal teaches at Yale, former Chairman of the Joint Chiefs Mike Mullen will lead a class on diplomacy and military affairs at Princeton and most interestingly, former SOCOM commander Adm. Eric Olson will present on military strategy at Columbia next fall.  Throw in ROTC returning to the Ivy League this year and it points to a dramatic change in the relationship between the nation’s top private schools and its military.

About Us: ScoutComms is a unique marketing communications and public relations consulting firm based in the Washington D.C. area that focuses exclusively on the aerospace, defense and veterans’ sectors providing our clients deep insight and counsel based on decades of military and public relations industry experience.  To learn more about what we can do for your organization visit our website at www.ScoutCommsUSA.com.

Upcoming event? Have an event you would like us to include on our look ahead?  Drop us an email at fwellman@ScoutCommsUSA.com and we will make sure we let our readers know.

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