Shipbuilding Initiatives a Priority for Acting NavSec Cao

Hung Cao had been serving as the US Navy undersecretary until his promotion last week after the abrupt firing of NavSec John Phelan.

Morning Coffee is a robust blend of links to news around the internet concerning the Naval Air Station Patuxent River economic community. The opinions expressed here do not reflect opinions of the Leader’s owners or staff.

The Pentagon provided few details on the firing of NavSec John Phelan last week, reports Military Times, other than saying that “President Trump and [Defense] Secretary Hegseth agreed new leadership at the Navy is needed.” Phelan was ousted after months of infighting with senior Pentagon leaders and disagreements over how to revive the Navy’s struggling shipbuilding program, The New York Times reports. Fox News reported on Thursday that tensions between Hegseth and Phelan had been building for months, in part over the Navy secretary’s execution of shipbuilding plans.

Acting NavSec Hung Cao has built substantial credibility for being a quick study on shipbuilding and managing turmoil after turnover wracked the service last year, reports Politico. “My immediate priorities are taking care of our sailors and marines, advancing shipbuilding initiatives, and ensuring the defense of our homeland,” Cao said.

Iran has caused billions of dollars in damage to US military bases and assets in Gulf region, reports The Hill.  Runways, radar systems, dozens of aircraft, warehouses, command headquarters, aircraft hangars, and satellite communications infrastructure have been hit by Iranian forces.

East Coast carrier USS George H.W. Bush is now operating in the Middle East after sailing around the southern tip of Africa, reports USNI News. This marks the first time three carriers have been in the Middle East since the height of the US wars in Iraq and Afghanistan.

The US Navy’s medium-sized unmanned service vessels fleet could be seven times larger by 2030 in the Indo-Pacific, reports Navy Times. The fleet would jump from roughly four to 30 vessels in four years, CAPT Garrett Miller, commodore of Surface Development Group 1, said while speaking at the 2026 Sea-Air-Space expo last week in Oxon Hill.

Lockheed Martin will not pursue a competition for a new US Navy training jet, reports Breaking Defense, calling the exit from the program a “surprise.” The defense contractor had been poised to bid the TF-50N in partnership with Korea Aerospace Industries.

The Air Force, in conjunction with the Defense Innovation Unit, has selected three companies to potentially develop and operate microreactors at military installations, as part of the Advanced Nuclear Power for Installations initiative, reports Federal News Network. The service announced that Buckley Space Force Base in Colorado and Radiant Industries, Malmstrom Air Force Base in Montana and Westinghouse Government Services, and Joint Base San Antonio in Texas and Antares Nuclear have been chosen.

The Pentagon has fired the US military newspaper Stars and Stripes’ ombudsman, reports The Hill. The ombudsman’s job is to monitor the outlet’s editorial independence and report concerns to Congress. “Apparently the Pentagon also doesn’t want you to hear from me anymore about threats to the editorial independence of Stars and Stripes. They fired me,” Jacqueline Smith wrote in an op-ed published in the newspaper. Congress created the ombudsman position in 1991 after military personnel in the late 1980s attempted on many occasions to suppress unfavorable news of the Iran-Contra affair and other issues.

At a Friday press conference, Hegseth took questions from two TMZ reporters attending a Pentagon briefing for the first time, reports The Hill. TMZ, an entertainment-focused tabloid news organization owned by the Fox Corporation, has opened a Washington, DC, bureau. Most questions asked during the briefings now come from right-wing media outlets. Reporters from more mainstream news outlets are almost never called on. “It is apparent the majority of reporters called upon at the Pentagon briefing don’t cover the Pentagon regularly …,” wrote Newsmax reporter Carla Babb on X.

Earlier this month, Hegseth continued his attacks on the media, comparing reporters covering the Iran war to the Pharisees, the biblical Jewish group that opposed Jesus, reports NBC News. “Sometimes it’s hard to figure out what side some of you are actually on,” Hegseth said to journalists gathered for a press briefing April 16 at the Pentagon.

The Supreme Court has ruled that US military contractors no longer have immunity to lawsuits brought by troops, reports Task & Purpose. The ruling allows a former soldier to use state injury laws to sue a US business whose Afghan employee gravely wounded him in a 2016 suicide bombing.

The US Army wants a robot that can function autonomously to move supplies and evacuate casualties from near the front lines of combat, reports Army Times. Fire from traditional weapons like artillery, machine guns, and snipers pose a threat to drones, so the service wants a robot that can do the work.

Air National Guard leaders are calling for funding to buy between 72 and 100 new fighter jets, reports Air Force Times. In a letter to the House and Senate Appropriations committees and their defense subcommittees, officials are calling on Congress to legislate multiyear procurement of F-35A Lightning IIs and F-15EX Eagle IIs.

The Air Force and Space Force want to expand their ranks next year under the Pentagon’s proposed $1.5 trillion 2027 budget, reports Air & Space Forces Magazine. The Air Force would add 8,900 airmen, and the Space Force is projected to increase by 2,800 Guardians, a first step toward doubling the new service’s size in the coming years.

US special forces soldier Gannon Ken Van Dyke, who was involved in the capture of Venezuelan President Nicolás Maduro, was arrested and charged for allegedly betting on that operation, netting him $400,000 in profits, reports CNN. Van Dyke allegedly opened an account in late December on Polymarket, where he wagered about $32,000 that Maduro would be “out” by January. The bet was a long-shot.

French police are investigating the suspected tampering of a weather device after an odd Polymarket bet, reports NPR. An anonymous trader bet $119 that the weather in Paris on April 15 would jump past 64 degrees Fahrenheit. Weather enthusiasts online noticed temps heating up on that day. After the temperature climb was logged, the trader netted $21,398 in profit.

The US has more than 3,000 operational data centers, and that number is expected to grow substantially in the years ahead, Pew Research Center analysis shows. More than 1,500 new data centers are in various stages of development across the country; 67% of planned data centers are in rural areas, while 87% of existing data centers are in urban areas, according to data.

Contracts:

RTX Corp., East Hartford, Connecticut, is awarded a $369,856,548 modification (P00003) to a fixed-price incentive (firm-target), cost-plus-incentive-fee, advanced acquisition contract (N0001926C0118). This modification adds scope to authorize procurement of Lot 21 F135 Propulsion Systems and to procure advanced long lead time materials, parts, components, and efforts in support of the F135 Propulsion System Lot 20 delivery schedule of 138 propulsion systems for the Air Force, Marine Corps, Navy, F-35 Cooperative Program Partners, and Foreign Military Sales (FMS) customers.  Work will be performed in East Hartford, Connecticut (17%); Indianapolis, Indiana (10%); Middletown, Connecticut (8%); Kent, Washington (7%); North Berwick, Maine (4%); EL Cajon, California (3%); Cromwell, Connecticut (3%); Whitehall, Michigan (3%); Portland, Orgeron (2%); San Diego, California (2%); South Bend, Indiana (2%); Columbus, Georgia (1%); Hampton, Virginia (1%); Manchester, Connecticut (1%); Cheshire, Connecticut (1%); Elmwood Park, New Jersey (1%); and various locations within the continental U.S. (34%), and is expected to be completed in May 2031. Fiscal 2026 aircraft procurement (Air Force) funds in the amount of $51,085,000; fiscal 2026 aircraft procurement (Navy) funds in the amount of $56,588,000; fiscal 2025 aircraft procurement (Air Force) funds in the amount of $1,739,139; fiscal 2025 aircraft procurement (Navy) funds in the amount of $23,095,553; F-35 cooperative program partner funds in the amount of $80,191,258; and FMS funds in the amount of $157,157,598, will be obligated at the time of award, none of which will expire at the end of the current fiscal year. This contract was not competed. Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. 

General Dynamics Electric Boat Corp., Groton, Connecticut, is awarded a $196,554,317 cost-plus-fixed-fee contract to support engineering, technical, design agent and design transfer activities for nuclear submarine capabilities and their sustainment, in support of foreign military sales requirements. This contract includes options which, if exercised, would bring the cumulative value of this contract to $930,409,844. Work will be performed in Groton, Connecticut (70%); North Kingstown, Rhode Island (7%); Pearl Harbor, Hawaii (5%); Washington, D.C. (1%); Portsmouth, New Hampshire (1%); Newport, Rhode Island (1%); Norfolk, Virginia (1%); and various foreign locations (13%) and is expected to be completed by April 2027. If all options are exercised, work will continue through April 2031. No U.S. funding is included in this contract. Foreign Partner funds in the amount of $28,050,000 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S. Code 3204(a)(1) (only one responsible source and no other supplies or services will satisfy agency requirements). Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-26-C-2132).

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $177,493,428 modification (P00022) to a cost-plus-incentive-fee contract (N0001923C0003). This modification adds scope to provide all touch labor and reach-back engineering required to build and deliver three flight science aircraft, one for each variant (F-35A, F35B and F35-C) to replace the aging original flight science aircraft in support of preventing a capability gap for flight test and allow for future, holistic testing of Block Four capabilities and other future capabilities for the Joint Strike Fighter program. Work will be performed in Fort Worth, Texas (30%); El Segundo, California (25%); Warton, United Kingdom (20%); Orlando, Florida (10%); Nashua, New Hampshire (5%); Grenaa, Denmark (5%); and Baltimore, Maryland (5%), and is expected to be completed in April 2031. Fiscal 2025 research, development, test and evaluation (Air Force) funds in the amount of $18,836,324; fiscal 2025 research, development, test and evaluation (Navy) funds in the amount of $18,836,324; and F-35 cooperative program partner funds in the amount of $8,390,436 will be obligated at the time of award, $37,672,648 of which will expire at the end of the current fiscal year. The contract action was not competed. Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

Lockheed Martin, Rotary and Mission Systems, Moorestown, New Jersey, was awarded a $49,893,672 cost-plus-incentive-fee and cost only modification to previously awarded contract (N00024-20-C-560)1 to exercise options for sustainment of the Littoral Combat Ship Component Based Total Ship System-21st Century and associated combat system elements. Work will be performed in Moorestown, New Jersey (87%); Camden, New Jersey (5%); Virginia Beach, Virginia (5%); Orlando, Florida (1%); and various other locations (2%) and is expected to be completed by April 2027. Fiscal 2026 research, development, test and evaluation (Navy) funds in the amount of $4,284,181 (85%); and fiscal 2026 operations and maintenance (Navy) funds in the amount of $772,583 (15%), and will be obligated at time of award, of which $772,583 will expire at the end of the current fiscal year. Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Awarded April 22, 2026).

Iron Bow Technologies LLC, Herndon, Virginia, was awarded a $99,967,000 firm-fixed-price contract for software modernization support. This contract provides for a consolidated DAF hardware and software bundles which enable training, management, and tracking of assets. Work will be performed in the continental U.S. and outside the continental U.S. locations and is expected to be completed by April 23, 2027. This contract was a competitive acquisition and two offers were received. Fiscal 2026 operations and maintenance funds in the amount of $99,967,000 are being obligated at time of award. The 10th Contracting Squadron, U.S. Air Force Academy, Colorado, is the contracting activity (FA700026C0005). 

RCT Systems Inc.,* located in Baltimore, Maryland, is awarded a $18,291,139 cost-plus-fixed-fee modification to a previously awarded contract (N00024-21-C-4109) for research and development activities associated with advancement and improvement in current and future shipboard electric power and energy systems. Work will be performed in Baltimore, Maryland (68%); Fayetteville, Arkansas (19%); Tuscaloosa, Alabama (10%); and Tallahassee, Florida (3%), and is expected to be completed by March 2028. Fiscal 2026 research, development, test and evaluation (Navy) funds in the amount of $7,712,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

Metron Inc., Reston, Virginia, is awarded a $9,568,357 cost-plus-fixed fee and cost only modification to exercise the option for development of Combat System signal processing, tracking algorithms, tools and display technologies for Undersea Warfare Systems including the Undersea Warfare Decision Support System and Advanced Processing and Capability Builds for Surface Ship and Submarine systems. Work will be performed in Reston, Virginia (95%); and Portland, Oregon (5%), and is expected to be completed by September 2027. Fiscal 2026 research, development, test and evaluation (Navy) funding in the amount of $1,423,260 will be obligated at the time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

Deloitte & Touche LLP, Arlington, Virginia, has been awarded an $82,100,000 firm-fixed-price call order for information technology, financial management, financial improvement, and audit remediation. This contract provides for financial audit remediation services for the Department of the Air Force. Work will be performed at Joint Base Andrews, Maryland; and Washington, D.C., and is expected to be completed by April 23, 2029. This contract was a competitive acquisition and four offers were received. Fiscal 2026 operations and maintenance funds in the amount of $30,714,761 are being obligated at time of award. The Air Force District of Washington, Joint Base Andrews, Maryland, is the contracting activity (FA701426F0108). 

Kearney & Co., Alexandria, Virginia, has been awarded a $24,459,735 firm-fixed-price task order under GSA OASIS+ for financial management workforce development support services. This contract provides for support for enterprise-level financial management certification, workforce development, and financial management hub platform sustainment in support of the Department of the Air Force. Work will be performed at the National Capital Region and is expected to be completed by March 20, 2031. This contract was a competitive acquisition and five offers were received. Fiscal 2026 operation and maintenance funds in the amount of $3,821,249 are being obligated at time of award. The Air Force District of Washington, Joint Base Andrews, Maryland, is the contracting activity (FA701426F0106). (Awarded April 23, 2026).

M.C. Fuhrman & Associates LLC, Haddonfield, New Jersey, was awarded a $47,467,558 firm-fixed-price contract for operational, technical, and administrative support services, including engineering and facility studies, process evaluations, software and systems support, facility and laboratory modernization, sustainment, restoration and maintenance, safety, security, environmental and occupational health support, and infrastructure program coordination. Bids were solicited via the internet with one received. Work will be performed in Aberdeen, Maryland, with an estimated completion date of April 23, 2031. Fiscal 2026 research, development, test and evaluation, Army funds in the amount of $85,000 were obligated at the time of the award. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W56KGU-26-C-0006).

*Small business