Brandon Tseng, Co-founder and President of Shield AI, presented a compelling case for reforming the Department of Defense (DoD) acquisition process in his statement to the U.S. House Armed Services Committee. Tseng, a former Navy SEAL and engineer, emphasized shifting from a requirements-based to a problem-based acquisition system to foster innovation and maintain America’s military edge.
Tseng highlighted Shield AI’s achievements in developing AI-piloted aircraft and drones, including the MQ-35 V-BAT and autonomous F-16 flights. He argued that current DoD acquisition processes often result in incremental improvements (“faster horses”) rather than transformative solutions. The existing requirements-based system, Tseng contended, is slow, inflexible, and discourages innovation from defense contractors.
To address these issues, Tseng proposed establishing a new problem-based acquisition system separate from current processes. This system would focus on solving identified problems without specifying requirements, provide flexible budgeting based on value, and target 25% adoption of major acquisition efforts within three years. Tseng also recommended implementing pre-deployment training under electronic warfare conditions to assess the survivability of U.S. military systems.
Tseng’s testimony underscores the critical role of software and AI in future military capabilities, emphasizing the need for increased investment and a shift in DoD culture to recognize these technologies’ strategic importance. (Read the complete statement)
Forterra Secures $75 Million in Funding for Autonomous Driving Systems
The US-based Forterra company (formerly RRAI) has successfully raised $75 million to advance its autonomous AutoDrive vehicle technology, which facilitates autonomous driving systems for military and commercial vehicles. The AutoDrive systems have become central elements in autonomy systems explored or used by the US Army and US Marine Corps, including autonomous convoys (ACE/GEARS), autonomy retrofits, robotic combat vehicles (RCV), small, multipurpose equipment transports (SMET), and remotely operated ground units for Expeditionary forces (ROGUE).
Northrop Grumman and Lithuania Partner to Boost Defense Industrial Capabilities
Northrop Grumman Corporation and the Lithuanian government have signed a Memorandum of Understanding (MOU) to collaborate on enhancing Lithuania’s defense industrial capabilities. The agreement, signed on September 23, 2024, focuses on supporting Lithuanian industry in producing medium-caliber ammunition for Infantry Fighting Vehicles. This collaboration is expected to contribute to replenishing stockpiles and improving munitions supply chains for allied nations. The project is anticipated to involve the state-owned Giraitė Armaments Plant, aligning with Lithuania’s broader strategic objective of enhancing its defense industry.
Honeywell Finalizes $1.9 Billion Acquisition of CAES
Honeywell has acquired CAES Systems Holdings LLC from Advent International for $1.9 billion in cash. This strategic move significantly enhances Honeywell’s defense and space portfolio, particularly in high-reliability radio frequency technologies.
Rolls-Royce Sells Naval Propulsors and Handling Business to FMD
Rolls-Royce has agreed to sell its Naval Propulsors and Handling Systems business to Fairbanks Morse Defense (FMD), a leading provider of marine power solutions for naval forces. This divestment is part of Rolls-Royce’s ongoing efforts to streamline its portfolio and focus on core areas of expertise. Rolls-Royce will retain its Naval Gas Turbines and Generator Sets operations, which provide power-dense solutions for naval propulsion and onboard power needs.
