DEFENSE AND CRITICAL TECHNOLOGIES

December 4, 2023

Congress is in session this week. With the recent continuing resolution punting funding deadlines into next year, Congress will aim to pass both the NDAA and a possible national supplemental with funding for Ukraine, Israel, border security, and the Indo-Pacific region before leaving for the holidays at the end of next week. The NDAA is expected to be filed in the coming days and could be passed as soon as this week (more on that below). Lawmakers, national security officials, and defense industry leaders gathered in Simi Valley over the weekend for the Regan National Defense Forum. The annual event included keynote speeches from Defense Secretary Lloyd Austin and Commerce Secretary Gina Raimondo as well as several panels with Congressional Members and National Security experts. This year’s discussion and panelists were heavily weighted towards China and the importance of emerging technology in this competition. Austin’s speech focused on the need for American leadership in an increasingly dangerous world, denouncing those who advocate for "an American retreat from responsibility." Raimondo used her speech to advocate for more funding and authority for the Commerce Department’s Bureau of Industry and Security to enforce export controls and keep adversaries from obtaining sensitive technologies.

On Friday, the top defense officials from the U.S., Australia, and the UK announced several new initiatives under AUKUS Pillar II, which focuses on the joint development of advanced technology. Among the announced initiatives are projects aimed at improving the use of autonomous maritime systems; developing quantum technologies for positioning, navigation, and timing (PNT); enhancing cyber security for the naval supply chain; and integrating AI and machine learning for precision targeting and intelligence, surveillance, and reconnaissance (ISR). The defense leaders also announced efforts to collaborate on trilateral operational requirements, increase defense trade, and convene an Industry Forum to facilitate the development and delivery of advanced capabilities. AUKUS partners are also launching a series of AUKUS innovation challenges in which companies will be able to compete for prizes on a common innovation challenge topic. The first trilateral Innovation Prize Challenge will focus on electronic warfare. The countries will also establish the AUKUS Defense Investors Network to expand private sector engagement and leverage “the current networks in all three countries to strengthen financing and facilitate targeted industry connectivity.” At the Regan National Defense Forum on Sunday, Heidi Shyu, undersecretary of defense for research and engineering, confirmed plans to conduct joint hypersonics experiments with the Australian military as soon as next year. These announcements are the first major efforts by the Department of Defense to actualize Pillar II of the AUKUS agreement. So far, defense officials have largely focused on Pillar I to support Australia in acquiring conventionally armed, nuclear-powered submarines.

After months of negotiations, Congress is getting ready to vote on the National Defense Authorization Act (NDAA). Negotiators worked through the weekend to hammer out the last few issues stalling the bill. A Senate provision that would have created investment screening mechanisms for certain Chinese dual-use tech industries will be dropped from the final NDAA after Rep. Patrick McHenry (R-NC), Chair of the House Financial Services Committee, lobbied against its inclusion. McHenry argued that the bill authored by Senators John Cornyn (R-TX) and Bob Casey (D-PA) would limit “Americans’ control, influence, and intelligence gathering in Chinese technology companies.” McHenry instead called for the use of “time-tested tools” like sanctions and export controls and pushed for an alternative measure that would direct Treasury to sanction banks that service certain Chinese companies.

Another key debate between lawmakers focuses on provisions that would authorize the transfer of Virginia Class submarines to Australia as part of the AUKUS agreement. Senate Armed Services Committee Ranking Member Roger Wicker (R-MS) is blocking the legislation for assurances that Congress would pass supplemental funding for the submarine industrial base. After high-level talks with Senate leadership last week, Wicker said “I think we’re headed toward a solution that is satisfactory to all parties.” The NDAA also carries legislation that would reform export control restrictions to facilitate cooperation between the U.S., Australia, and the UK on advanced military technology.

The NDAA may have to wait until the national security supplemental receives a floor vote. Senate Majority Leader Chuck Schumer (D-NY) stated that the Senate will consider the proposal that includes aid for Ukraine, Israel, Taiwan, and the southern border this week. Senate Republicans are also pushing Democrats to include policy changes on border security and immigration. Speaking to POLITICO at the Regan National Defense Forum, House Armed Services Ranking Member Adam Smith (D-WA) said the NDAA likely won’t see a vote until after the Senate takes up the supplemental. With just two weeks left in the legislative session, Congress will seek to quickly pass the conferenced NDAA once House and Senate leaders clears the way for a floor vote.

Pentagon approves first Rapid Defense Experimentation Reserve projects (C4ISRNET)

“The Pentagon’s chief technology officer is preparing to transition the first slate of joint, rapid experimentation projects to production this fiscal year, following approval from Defense Department leaders. Undersecretary of Research and Development Heidi Shyu said Dec. 2 that the deputy’s management action group — a panel of senior officials, service leaders and combatant commanders — approved three projects at a recent classified meeting.”

Austin, AUKUS partners announce Pillar II plans: Maritime exercises, DIU challenges, industry forums (Breaking Defense 12/01)

“The top defense officials from the United States, United Kingdom and Australia today announced a raft of new initiatives associated with the AUKUS security pact’s second pillar, focused on trilateral maritime exercises and opportunities to engage industry from all three countries. ‘Again and again AUKUS proves that we are stronger together,’ US Defense Secretary Lloyd Austin said during a joint press conference, flanked by United Kingdom’s Secretary of State for Defence Grant Shapps and Australia’s Minister for Defence Richard Marles. ‘And every day we move closer to our shared vision of a free and open Indo-Pacific.’”

Defense Officials Report Progress on Replicator Initiative (U.S. Department of Defense 12/01)

“Speaking from the DIU campus in Mountain View, California, DIU Director Doug Beck said officials from across the department have been keenly focused on aligning capabilities with operational needs as DOD moves forward with the first iteration of Replicator. ‘"This is a whole-of-department effort,’ Beck said, adding that capturing input from across the services and combatant commands is critical to ensuring the department delivers capabilities that meet the objective Deputy Defense Secretary Kathleen Hicks identified as part of the effort.”

Defense officials put technology at center of AUKUS summit (Defense News 12/01)

“Most of the talk to date about the American, Australian and British submarine pact known as AUKUS has focused on what’s known as Pillar I, the sprint to supply Australia with its own nuclear-powered submarine. The partnership’s second pillar, centered on advanced technology such as hypersonic missiles and quantum computing, seemed further away. That is now changing, according to the Pentagon.”

Mike Johnson Becomes Surprise Champion of More Ukraine Aid (The Wall Street Journal 12/02)

“Less than one month before Mike Johnson’s sudden ascent to the speakership, the Louisiana Republican, then a little-known member, joined with most GOP lawmakers to vote against $300 million in U.S. security assistance for Ukraine. Now, as speaker, Johnson has surprised many on Capitol Hill by publicly and repeatedly calling Ukraine aid a critical priority for the House. ”

AI For Five Eyes? New bill pushes AI collaboration with UK, Australia, Canada, New Zealand (Breaking Defense 11/22)

“Two key House lawmakers have introduced a bill requiring the Pentagon to collaborate more closely with America’s closest allies on artificial intelligence. Rep. Mike Gallagher (R-Wis.), chairman of the House Armed Services subcommittee on cybersecurity and information technology, and the ranking Democrat on the subcommittee Ro Khanna (D-Calif.) introduced the bill on Tuesday. It would direct the Secretary of Defense and the Director of National Security to jointly form an interagency working group ‘to develop and coordinate an artificial intelligence initiative among the Five Eyes countries’ — Australia, Britain, Canada, New Zealand and the United States.”

Commerce Dept. needs funding to match China challenge, Raimondo says (Defense News 12/02)

“The Commerce Department needs a bigger budget to better help the U.S. outpace China on technology. That was the message today from Commerce Secretary Gina Raimondo at the Reagan Defense Forum, a symposium of government and industry officials in California. She used her speech at the event to give a pitch for more funding from Congress — particularly for the Bureau of Industry and Security, which handles export controls.”

Bill urges Pentagon to speed JADC2 transition in focus on Indo-Pacific (C4ISRNET 11/30)

“U.S. lawmakers are urging the Department of Defense to prioritize the Indo-Pacific as it interlinks soldiers, sailors, airmen, Marines and their disparate databases in a multibillion-dollar effort known as Combined Joint All-Domain Command and Control. Companion bills filed this week by Rep. Darrell Issa, a California Republican, and Sen. Joni Ernst, an Iowa Republican, instruct the department to address Indo-Pacific Command’s long-range networking and intelligence-sharing needs first. The command’s remit includes China and North Korea, as well Australia, Japan, South Korea and Taiwan. The Biden administration considers the region critical to international stability and financial well-being.”

‘Central to everything we do’: Army unveils first-ever doctrine for ‘information’ (Breaking Defense 11/28)

“Information has been a vital tool of victory since the first Stone Age warriors hid in ambush for a rival tribe. But with social media, satellite imagery, and surveillance drones generating ever-vaster amounts of data every day on soldiers and civilians alike, the ability to gather information, make sense of it, conceal it, and weaponize it has become more essential than ever before — not just to technical specialists but to combat commanders and even ordinary grunts. That’s the message of a newly published Army doctrine manual, entitled simply titled ‘Information.’”

Counter-drone tech need like that of 155mm shells: Pentagon’s LaPlante (Defense News 12/03)

“The Pentagon’s acquisition chief says that the need for drone defenses resembles that for 155mm artillery shells, which are in high demand amid wars in Ukraine and Gaza. ‘The production for counter-UAS [has] to go through the roof,’ said Under Secretary of Defense for Acquisition and Sustainment Bill LaPlante at a panel during the Reagan National Defense Forum here. ‘It’s like where we were about a year ago when we said 155 is going to have to go to 100,000 a month.’”