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A smart defense

In late 2020, the Air Force made headlines when it announced that an artificial intelligence co-pilot, named ARTUµ, helped command and control a U.S. military spy plane for the first time in history.

If the name, pronounced R-2, sounds familiar, it is. Think R2-D2, or “Artoo,” Luke Skywalker’s lovable droid and X-Wing copilot from the “Star Wars” franchise. Except this was not a galaxy far away, but Beale Air Force Base in California.

ARTUµ controlled sensors and tactical navigation of a U-2 Dragon Lady on a reconnaissance training mission out of Beale on Dec. 15, 2020. It was charged with searching for enemy missile launchers while the plane’s human pilot, known only by the call sign “Vudu,” searched for enemy aircraft during a simulated missile strike.

The tech, developed by McLean-based Fortune 500 contractor Booz Allen Hamilton and Air Force researchers, modified an open-source gaming algorithm and ran more than 1 million training simulations in a lab — a “digital Dagobah,” Will Roper, who then served as the service’s assistant secretary for acquisition technology and logistics, wrote in an editorial for Popular Mechanics. ARTUµ was mission-ready in just over a month.

“Failing to realize AI’s full potential will mean ceding decision advantage to our adversaries,” Roper said at the time. 

Fast-forward four years and AI’s technological advancements have continued, transforming lives and — controversially — livelihoods as it becomes more entrenched in the workplace. At the same time, the military has continued to cite how critical AI will remain in helping the U.S. outpace its adversaries. Even as the Pentagon faces ongoing tensions in the Middle East amid the conflict between Israel and Hamas, and in Europe with Russia’s ongoing war on Ukraine, military leaders are refocusing for the potential of a wide-ranging battle with China in the Pacific that would most likely unfold across sea, air, land, space and cyberspace.

Virginia’s defense contractors are at the cusp of that work, with a hand in some of the largest and most transformative AI projects on behalf of the military. Those range from warfighting tools like unmanned vehicles to generative AI software to perform mundane business support tasks like military personnel record searches. That’s work that could be game changing for the military at a time when budgets and manpower are tight and harnessing data could be key to maintaining the upper hand against an adversary.

“We try to focus on mission meets
innovation,” says Holly Levanto, who is overseeing delivery of AI and digital solutions for Booz Allen Hamilton’s defense clients. Photo by Shannon Ayres

“I think that the eye is on the prize … when it comes to [the Department of Defense] right now, from the perspective of this is something we have to do from a national security point of view based on threats that we see from other nation states,” says Jason Payne, chief technology officer for Arlington County-based Microsoft Federal, which currently has a contract worth as much as $21.9 billion to produce more than 100,000 AI-enhanced goggles for the Army. “We know that near-peer competitors are investing heavily in this technology.”

Crunching data

The Pentagon is also investing heavily in AI technology. Its fiscal 2025 budget request, which totals $850 billion and was released in March, includes $1.8 billion for AI spending as well as an additional $1.4 billion for the department’s Combined Joint All-Domain Command and Control project, an ambitious departmentwide effort to connect “sensors to shooters to targets” globally.

But those dollar figures, the Pentagon admits, don’t likely tell the full story. With AI involved in so many programs, the Pentagon’s comptroller has acknowledged it’s difficult to provide a detailed breakdown of its AI investments. Even pinning down the exact number of AI defense projects is challenging. A 2022 Government Accountability Office report found that the DOD had at least 685 ongoing AI projects spanning the military service — a figure based on procurement and research and development dollars.

While those numbers may not offer a ton of clarity on the scope to which the Pentagon is looking toward AI, they do underscore the importance of it for the military, and Virginia contractors are benefiting from that desire.

Booz Allen Hamilton bills itself as the largest supplier of AI services to the federal government, with more than 300 active projects involving AI, according to Holly Levanto, a vice president overseeing the delivery of AI and digital solutions for Booz Allen’s U.S. defense clients.

“We try to focus on mission meets innovation,” Levanto says.

That work has included some of the Pentagon’s largest AI projects to date, including an $800 million, five-year task order awarded in 2020 to integrate and develop AI for the warfighter in the Alliant 2 Joint Warfighter Task Order, as well as a $885 million, five-year task order awarded in 2018 to help the DOD sift through its enormous amount of reconnaissance data — a project called Enterprise Machine Learning Analytics and Persistent Services, or eMAPS — through the deployment of AI and neural and deep neural networks. Booz Allen won a $1.5 billion recompete for the project in 2022.

Focusing on those mission areas has meant incorporating AI in ways to parse data faster. As an example, the Navy gathers vast amounts of data from its ships, Levanto says. Booz Allen has turned raw naval message traffic into tabular data that can be more easily and quickly analyzed to pinpoint trends. 

“We can send AI models to the edge at the point of data collection,” says Levanto, a former naval surface warfare officer. “And so, we have some real-world scenarios where we’ve done that in points on the battlefield.”

Booz Allen also launched a venture capital fund in 2022 to sharpen its tech capabilities. It has now invested in 10 companies, eight of which are AI-focused, Levanto says. That included an investment in Wisconsin-based RAIC Labs, which developed a model- generating platform using unstructured data. In 2023, RAIC made headlines when its tech was used to track a Chinese intelligence balloon that traveled over the U.S. before being shot down by a military jet off the coast of South Carolina.

“Our ultimate goal is to get the Department of Defense to be able to utilize these leading commercial technologies … and so we need to help bridge that,” Levanto says.

Falls Church-based General Dynamics Information Technology, a subsidiary of Reston-based Fortune Global 500 aerospace and defense contractor General Dynamics, is also no stranger to big defense contracts involving AI, or those that involve wrangling large sets of data.

In March, GDIT received a $922 million contract to modernize enterprise IT infrastructure for U.S. Central Command, which directs and enables U.S. and allied military operations across the Middle East and a portion of Africa.

Data is the biggest barrier to AI, says GDIT’s Brandon Bean, the AI and machine learning leader for the company’s defense division. That includes data quality and integrity as well as accessing old, siloed IT architectures. Where it used to be that applications were built to create data as a byproduct, the paradigm has shifted. Now, data “is what the application is built to support,” Bean says. “The data comes first.”

At a September conference hosted by GDIT at Amazon’s HQ2 headquarters, John Hale, chief of cloud services for the Defense Information Systems Agency, discussed how DOD is working with contractors to update antiquated computer code with AI.

“We’re using AI capabilities to … modernize legacy code that all the people who ever wrote it are long gone,” Hale said. “And you know, it’s not perfect, but it gets us like 85 to 90% of the way there, and then we’re able to manually fill in that last 10 to 15% to bring these applications into the 21st century.”

For CENTCOM, GDIT is tasked with creating data analytical services to support decision-making across nearly 20 networks and building data centricity and literacy across the command. By leveraging AI, including incorporating data tagging, what has previously required a more tedious process of manual data sampling of mountains of records can be extrapolated much faster, giving commanders the potential to better evaluate what worked during missions, or develop trainings based on lessons learned. It could also help service members to prove justifications for injuries that may not have been recorded in their medical records, Bean says.

AI in the cockpit

While AI is helping the Defense Department wrangle large amounts of data for higher level decision-making, the Pentagon is also incorporating AI in weapons systems and for operational use by warfighters. And that tech is getting increasingly advanced.

In May, Air Force Secretary Frank Kendall, who has advocated for the military’s use of AI, rode in an F-16 Fighting Falcon that was controlled by AI in a dogfight exercise against another F-16 flown by a human. Relying on sensors, California-based Shield AI developed the program used by the Air Force during the flight. In March, Arlington County-based Boeing announced a collaboration with Shield AI to develop autonomous and AI technologies for defense programs. Boeing declined to comment for this story.

With AI in the cockpit, the technology shows no signs of slowing down, including in a variety of unmanned vehicles, which will be a key component in future battles, with several drone initiatives underway by the Pentagon and military branches.

At Newport News-based Huntington Ingalls Industries, Virginia’s largest industrial employer and the nation’s only builder of nuclear-powered aircraft carriers, computer vision and recognition technologies have improved to the point where autonomous undersea vehicles like the company’s REMUS platform can be used to hunt for targets, gather intelligence and respond to findings without having to report back to the surface, says Andrew Howard, senior director of unmanned surface vehicles and autonomy programs within HII’s Mission Technologies division.

“Based on … customer comfort with things, different use cases, they could either update its survey pattern based on that information, or they could use that as the cue to pass information back to a surface operator to … take action based on that,” Howard says. “So, it’s really kind of made the information a bit more actionable than it used to be.”

The Navy in December 2023 announced that it had successfully launched and recovered a REMUS “Yellow Moray” drone via torpedo tubes on the USS Delaware, a Virginia-class attack submarine commissioned in 2022 and built by HII in partnership with General Dynamics’ Connecticut-based Electric Boat subsidiary. The Navy has said it could field the program for its submarine fleet later this year.

Meanwhile, the Marine Corps has been testing similar surface-level technology for its Long-Range Unmanned Surface Vessel (LRUSV) program using technology developed by HII that uses cameras and machine learning to identify and classify targets for maritime domain awareness, Howard adds. The drone’s tech passes intelligence to an operations center for action. Based on that feedback, the drone can then update its mission and shadow an intended target if called upon to act.

Gathering intelligence with less risk to warfighters can help save lives. Making that information more readily available can make work easier, too.

Reston-based Fortune 1000 contractor CACI International offers the DarkBlue Intelligence Suite, a tool that incorporates various AI techniques, including computer vision and image processing, to help analysts in dark web investigations and tracking. The company received a $239 million six-year task order in August to provide intelligence analysis and operations, including the DarkBlue suite, to the Army’s Europe and Africa command.

AI is also helping the Marines step into the metaverse. In October 2023, Fairfax’s CGI Federal, the U.S.-based arm of the Canadian professional services and consultancy, announced that it successfully completed a $34 million pilot to digitally twin the Florida-based Marine Corps Platform Integration Center’s assets into a virtual world by tagging its inventory and helping the service track its assets in real time. Being able to keep up with equipment like tanks as they travel the world could be of huge importance in a distributed battle across the Pacific, where troops could set up on airfields constructed on austere island chains. It could also help the service track maintenance needs and predict trends across vehicle fleets, says CGI Vice President Stephanie Ackman, who leads the company’s technology practice for defense, space and intelligence clients. 

“When the rubber meets the road … [does a taxpayer] care about where the stuff is?” Ackman asks. “Yes, but they care more so about the safety of the individuals that are down range.”  

Boeing receives $2.3B Air Force contract for tanker aircraft

Arlington County-based Boeing has received a $2.3 billion contract to build 15 more KC-46A Pegasus tankers for the Air Force.

The Pentagon announced the award for production lot 10 of the tankers Tuesday. Boeing has 153 of the aerial refuelers under contract globally and has delivered 76 to the Air Force and two to Japan, Boeing said in a news release.

“We appreciate our partnership with the U.S. Air Force, which allows for the expansion of the capacity and capability of the KC-46A fleet,” Lynn Fox, vice president and KC-46 program manager for Boeing, said in a statement. “We understand the advantages that KC-46 capabilities give the warfighters, and in the current global environment, we continue to focus our investments on evolving the aircraft for the changing needs of the mission.”

Work will be performed in Seattle and is expected to be completed by July 31, 2027.

The KC-46A Pegasus provides capabilities including aerial refueling, cargo and passenger transportation, medical evacuation support and tactical edge data connectivity. In January, Boeing received a $2.2 billion contract to build 15 of the Pegasus tankers as part of its ninth production lot.

Boeing is the world’s third-largest defense contractor and employs more than 142,000 people globally. In May 2022, the company moved its headquarters from Chicago to Arlington County.

Northrop Grumman awarded up to $732M for satellite contract

Fortune 500 Falls Church defense contractor Northrop Grumman will build 38 data transport satellites for the U.S. Space Force’s Space Development Agency under a contract valued up to $732 million as the agency builds out a space-based communications network.

The work, announced Monday by the agency, falls under Tranche 2 Transport Layer – Alpha, a prototype constellation that the agency is rolling out as part of its low-Earth orbit Proliferated Warfighter Space Architecture. Denver-based York Space Systems will build 62 satellites under a $617 million agreement, bringing the total award up to about $1.3 billion.

The alpha constellation variant will provide encrypted communications for warfighters and provide missile warning, tracking and advance missile threats and supports the Pentagon’s Joint All-Domain Command and Control (JADC2) mission to provide “sensor-to-shooter” connectivity across the military branches into a single network. Monday’s announcement follows another, from August, in which the SDA announced $1.5 billion in awards, including about $733 to Northrop Grumman and about $816 million to Bethesda, Maryland-based Lockheed Martin, for 72 beta variants, with each company providing 36 satellites.

The first orbital plane of the alpha constellation is expected to be launched by Sept. 2026, the same month that the first beta prototype plane is expected to be ready for launch. The SDA has announced awards to Northrop Grumman for 132 satellites so far.

“Northrop Grumman, in partnership with our industry teammates, is fully committed to the Space Development Agency’s vision of fielding a next-generation, low-Earth orbit architecture connecting and protecting our warfighters wherever they serve,” Blake Bullock, Northrop Grumman’s vice president of communications systems, said in a news release. “Our Northrop Grumman team is bringing our deep Military SATCOM (satellite communications) experience to this mission, and we’re executing on our commitments.”

A SpaceX Falcon 9 rocket launched the first satellites in the network, Tranche 0, from Vandenberg Space Force Base in California on April 2 to demonstrate the network’s feasibility.

Defense contractor Northrop Grumman employs roughly 95,000 employees and reported $36.6 billion in 2022 revenue. The company ranked No. 413 on Fortune magazine’s Global 500 list for 2023, and No. 113 on its annual 1000 list of U.S. corporations for the year.

Two NoVa companies receive $1.5B DOD tech contract

Two Northern Virginia-based federal contractors have received a five-year contract valued up to $1.5 billion to provide analytic and technical support services to the Department of Defense’s administrative and management organization.

Falls Church-based Analytic Services, known as ANSER, and Alexandria-based Systems Planning & Analysis, known as SPA, will provide acquisition and sustainment, portfolio management, engineering and agile methodologies, policy analysis; business and financial support; international programs and security, legislative support, data governance and technical support to the DoD’s Washington Headquarters Service. Work will be performed at the Pentagon as well as other sites within the Washington, D.C., region. The Pentagon announced the award Sept. 15.

“This contract reaffirms ANSER’s commitment to advancing the mission-critical goals of the DoD,” Tony Francis, ANSER’s vice president of marketing and business development, said in a statement. “We take great pride in bringing our expertise to diverse critical functions, such as legislative and policy analysis, capability portfolio management and data science support, all dedicated to fortifying our nation’s security and defense efforts.”

ANSER was founded in 1958 as a research institute and nonprofit focused on national and homeland security. SPA provides strategic advising, systems engineering, modeling and simulation, advanced analytics, industrial policy and program management solutions to government and defense customers in the United States as well as to its allies. SPA announced earlier this month that it acquired Florida aerospace engineering company PRKK. Terms of the deal were not disclosed.

Reston contractor lands $235M extension for Iraq base support

A subsidiary of Reston-based federal contractor Acuity International LLC won a $235.6 million U.S. Air Force contract modification to provide base support and security services for the Iraq F-16 program, the Pentagon announced Wednesday.

The modification adds 12 months to the previously awarded contract, bringing the cumulative value of the contract to $360.78 million. The subsidiary, Sallyport Global Holdings Inc., will provide base operations and base life support in addition to security services at the Martyr Brigadier General Ali Flaih Air Base in Iraq. The contract involves foreign military sales to Iraq. Work is expected to be completed by Jan. 30, 2024.

Sallyport Global Holdings was a subsidiary of Reston-based Caliburn International, which in late 2021 split to form two companies — Acuity International, focusing on technology services, and Valiance Humanitarian LLC, which took the former firm’s migrant detention contracts.

Acuity has more than 3,300 employees in more than 30 countries. The company provides process- and technology-based medical, engineering and mission services and solutions to government and commercial clients.

Prism Maritime receives $250M Navy contract

Chesapeake-based Prism Maritime LLC has received a contract valued up to $250.8 million to install, modify and upgrade various combat systems for the Navy, Coast Guard and for foreign militaries, according to the Pentagon.
The cost-plus-fixed-fee, cost-type contract, announced Friday, will continue through October 2027 if all options are exercised. Work will be performed on shore at land-based test facilities, shipyards and onboard ships in port or at sea for the Navy, Coast Guard and at foreign military sale locations and supports the Alteration Installation Team at Navy Surface Warfare Center Port Hueneme Division in California.
Fiscal 2023 funds totaling $10,000 were obligated at the time of the award. Prism was among three contractors to submit a bid. In 2021, the company announced it would invest $4 million to construct two 12,000-square-foot building for manufacturing, lab and storage space.

VersAbility Resources lands $140M Air Force contract

Hampton-based VersAbility Resources Inc. has received a $140.7 million contract to support mail and postal service center support at Air Force installations across the U.S., the Pentagon announced Friday.

The firm-fixed-price, indefinitely delivery contract was a sole source acquisition and work is expected to be complete by Jan. 17, 20s3.

Founded in 1953, VersAbility Resources serves more than 1,800 people with disabilities and their families annually with a variety of services, including employment programs and business partnerships that provide staffing solutions.

 

American Systems receives $1B+ DISA contract

Chantilly-based government contractor American Systems Corp. has received a contract from the Defense Information Systems Agency valued up to $1.01 billion for test, evaluation and certification services, the Pentagon announced Friday.

A minimum guarantee of $10,000 will be made through a task order that will be funded by fiscal 2023 research, development, test and evaluation appropriations. The contract’s ordering period runs from Dec. 2, 2022, to Dec. 1, 2026, with one five-year option and a one-year option through Dec. 1, 2023. The contract was made though the Defense Information Technology Contracting Organization at Scott Air Force Base, Illinois.

American Systems focuses on strategic solutions for national security programs. DISA provides IT and communications support to the executive branch, the military services and combatant commands.

HII leases space in National Landing

Newport News-based Huntington Ingalls Industries Inc. could soon add its name to a building in Arlington’s National Landing area.

The Fortune 500 military shipbuilder has signed an 11.5 year lease with JBG Smith for 36,809 square feet in an 11-story office tower at 2451 Crystal Drive, the Bethesda, Maryland-based real estate firm announced Tuesday. The lease gives HII, Virginia’s largest industrial employer, signage rights, JBG Smith said.

HII is expected to move into the space in late summer 2023. HII spokesman Danny Hernandez called the new space an “enhancement” to the company’s presence in the national capital region, bringing it closer to the Pentagon as well as Reagan National Airport.

HII already has presence in the region, including at the Navy Yard, in Washington, D.C., and in McLean, where its Mission Technologies division is headquartered. The new space will be comprised of employees from corporate, as well as those from HII’s Ingalls, Newport News Shipbuilding and Mission Technologies divisions who currently operate near the Navy Yard. About half of HII’s Navy Yard-based employees will move, Hernandez said, but did not give a specific number.

The company’s space at the Navy Yard will also be reduced, Hernandez said, adding that the new space will be on one floor, “which is important to our team and culture.”

“We will maintain space near the Navy Yard so our close working relationship with our largest customer, the U.S. Navy, continues, and at the National Landing we will get better access to our wider set of customers across the services,” Hernandez said. “Our headquarters stays in Newport News, and this new space facilitates quick travel between them. We’re excited about what this means for our HII team and our ability to grow our impact, with all our customers.”

HII employs more than 44,000 workers in Virginia and the company is the country’s only builder of nuclear-powered aircraft carriers, including the Navy’s newest flattop, the first-in-class USS Gerald R. Ford, which left Norfolk on its maiden deployment earlier this month.

HII has also expanded its focus as a technology business, expanding its capabilities and workforce to meet the needs of its national security customers.

HII adds another marquee name to Arlington’s growing defense presence. In May, Boeing Co. announced it was moving its headquarters from Chicago to Arlington. The next month, Raytheon Technologies Corp. announced it would relocate its global headquarters to Arlington from Massachusetts.

JBG Smith is the developer behind Amazon.com Inc’s East Coast HQ2 headquarters. In June, the e-tailer acquired the 11-acre PenPlace development site, from JBG Smith for $198 million.

Leidos receives $1.5B DOD task order

Reston-based Fortune 500 government contractor Leidos has received a task order valued up to $1.5 billion to support the Department of Defense with technology to enhance its Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance and Reconnaissance (C5ISR) missions, the company announced Wednesday.

Under the contract, Leidos will focus on the rapid insertion of technologies across the agency’s mission spectrum and integrate new tech with existing and legacy systems. The award includes a one-year base period with four additional one-year options with work being performed across the globe.

“In today’s battlefield, the command who has actionable multi- and cross-domain data fastest is the one with the high ground,” Leidos Defense Group President Gerry Fasano said in a statement. “Leidos has finely tuned our portfolio of expertise and developed a dynamic enterprise suite of C5ISR solutions, including Joint All-Domain Command and Control tools, to ensure our warfighters exploit state-of-the-art technology to maintain their decisive advantage and enable joint synergy for operational superiority. We are honored to support this critical mission, providing readiness against evolving global threats.”

In August, Leidos entered into an agreement with British technology aerospace manufacturer Cobham Ltd. to purchase the special missions business from its Australia-based Cobham Aviation Services subsidiary. Financial details were not disclosed.