October 17, 2019 | International, Land
By: Aaron Mehta
WASHINGTON — America sold more than $55 billion in weapons abroad in fiscal 2019, but the man in charge of those efforts hopes to increase sales as he continues to tinker with the security cooperation system.
Security cooperation has long been a foreign policy tool in America's pocket, but under the Trump administration, it “has been elevated to a tool of first resort for U.S. foreign policy,” Lt. Gen. Charles Hooper, the head of the Defense Security Cooperation Agency, said during a panel at the Association of the U.S. Army's annual conference.
Since taking over at DSCA, Hooper has implemented a series of reforms aimed not only at speeding the process up, but shaving costs for potential buyers. He intends to keep that reform effort going in 2020. Here's how:
Continue to cut surcharge costs. In June, DSCA dropped a surcharge on American defense goods sold abroad from 3.5 percent to 3.2 percent; later that year, the agency also cut a transportation administration fee. Both those charges are used to support DSCA operations, but some in the security cooperation process had argued the increased prices for customers would lead potential buyers to look to cheaper Russian or Chinese goods in the future.
Hooper said that in 2020, DSCA plans to also cut the contract administration surcharge — applied to each FMS case to pay for contract quality assurance, management and audits — from 1.2 percent to 1 percent.
“This will reduce the overall costs of FMS and could potentially save allies and partners 16.7 percent in CAS surcharges in this coming year,” Hooper said.
Make it easier for customers to get custom weapon systems. The FMS system is set up to help sell weapons that are identical to systems already in use by the U.S. military. It's easier to move a package of Abrams tanks equipped with the same gear that multiple countries use than to push through a custom version with specific capabilities. But Hooper noted that partners are moving away from standard designs and are looking for systems “designed and tailored to meet their needs. Our system was not initially designed to process these types of systems, which increases time and cost in the U.S. response.”
To help deal with that, DSCA established an “interagency non-program of record community of interest,” which involves all the agencies that have a say in the process, to figure out ways to make moving custom systems more plausible. The goal is to have a new pathway for moving those capabilities by 2020, which Hooper says will “reduce the time it takes to review request for non-program of record systems, to facilitate industry ability to compete in this global market.”
Plan out commercial offsets. Many countries require offsets from industry for big foreign military sales. These offsets are essentially throw-in sweeteners for the buying country, put together from the industrial partner. In the past, these were often things like building a new library or school. But in the last two decades, some countries specifically requested high-end technologies or tech transfer to jump-start their domestic defense industries.
Because offsets are negotiated between the industrial partner and the customer nation, the Pentagon, which serves as the in-between for an FMS case, often finds out about offsets only at the end of the process. But with offsets becoming more technological, those now require more review time, and so a deal can slow down while the relevant agencies approve the deal.
Hooper hopes 2020 will see industry better inform DSCA of potential offsets early in the process so that last minute hangups can be avoided.
“We continue to encourage our industry partners to inform the U.S. of potential offset requirements early on so that we can begin the necessary technology security foreign disclosure and policy reviews as early as possible,” Hooper said.
October 26, 2023 | International, Aerospace
U.S. defense company Northrop Grumman on Thursday raised its annual revenue target for the second time this year after its third-quarter earnings beat analysts' estimates helped by strong weapons demand.
December 31, 2018 | International, C4ISR
By: Todd South The agency that invented stealth technology, the internet, and the M16 has its sights focused on enhancing how the infantry squad works on the battlefield with robots, and advanced targeting and sensing gear. The Squad X program saw its first week-long series of tests at Twentynine Palms, California, this past year. At that event, Marine squads used air and ground vehicles to detect physical, electromagnetic and cyber threats, according to the Defense Advanced Research Projects Agency. The agency's program manager for their Tactical Technology Office, Army Lt. Col. Phil Root said that the first experiment in the program demonstrated “the ability for the squad to communicate and collaborate, even while ‘dancing on the edge of connectivity.'” Squad X Core Technologies program, or SXCT, is an ongoing effort to develop novel technologies that would “extend squad awareness and engagement capabilities without imposing physical and cognitive burdens,” according to a DARPA press release. They aim to speed the development of new, lightweight, integrated systems that provide infantry squads awareness, adaptability and flexibility in complex environments. That effort is to enable dismounted soldiers and Marines to more intuitively understand and control their complex mission environments, according to Root. Those efforts fit within wider work being done by the Close Combat Lethality Task Force, a group set up this past year to enhance close combat capabilities for infantry, special operations, scouts and some engineers. Root is also the program manager for Squad X Core Technologies. He laid out four key technical areas that the program is exploring: Precision Engagement: Precisely engage threats while maintaining compatibility with infantry weapon systems and without imposing weight or operational burdens that would negatively affect mission effectiveness. Capabilities of interest include distributed, non-line-of-sight targeting and guided munitions. Non-Kinetic Engagement: Disrupt enemy command and control, communications and use of drones. Capabilities of interest include disaggregated electronic surveillance and coordinated effects from distributed platforms. Squad Sensing: Detect potential threats at a squad-relevant operational pace. Capabilities of interest include multi-source data fusion and autonomous threat detection. Squad Autonomy: Increase squad members' real-time knowledge of their own and teammates' locations in GPS-denied environments using embedded unmanned air and ground systems. Capabilities of interest include robust collaboration between humans and unmanned systems. Some of those areas were previously explored in 2015 with DARPA's squad technology integration efforts. The tools used to detect threats in the experiments were newer, lighter, versions of previous capabilities. But the release did not provide detailed examples of the gear that Marines tested. “Each run, they learned a bit more on the systems and how they could support the operation,” said Root. “By the end, they were using the unmanned ground and aerial systems to maximize the squad's combat power and allow a squad to complete a mission that normally would take a platoon to execute.” The August event at the Marine Corps Air Ground Combat Center was one of a number of experiments in communications, cyber, EW, loitering munitions and targeting that was conducted over the past year. Both Lockheed Martin Missiles and Fire Control, and CACI's BIT Systems are working for ways to enhance infantry capabilities using manned-unmanned teaming, according to the release. Marines testing Lockheed Martin's Augmented Spectral Situational Awareness, and Unaided Localization for Transformative Squads, known as the ASSAULTS system, used autonomous robots with sensor systems to detect enemy locations, allowing the Marines to target the enemy with a precision 40mm grenade before the enemy could detect their movement, according to the release. Small units using CACI's BITS Electronic Attack Module were able to detect, locate, and attack specific threats in the radio frequency and cyber domains. This is all part of larger efforts to put more detection and fires at lower echelons in both the Army and Marine Corps. https://www.militarytimes.com/news/your-army/2018/12/30/darpa-program-blending-robots-in-the-squad-to-find-and-destroy-threats
April 2, 2020 | International, Naval
“We're gonna have to brave the storm together, especially some of the smaller suppliers,” said Lucas Hicks, vice president of new construction aircraft carrier programs. By PAUL MCLEARY WASHINGTON: The Navy is rushing to award several major shipbuilding contracts several months early to keep shipbuilders on the job and save smaller suppliers in danger of going out of business amid the wider manufacturing halt cause by the coronavirus crisis. The biggest is a contract to build the next San Antonio-class amphibious transport dock ship, (LPD 31) which serves as a jumping-off point for Marines heading ashore. The push to accelerate work is part of a wide-ranging effort to buttress the shipbuilding industry and the thousands of small suppliers that make parts for the Navy. The Navy's top acquisition official, James Geurts, told reporters Wednesday morning the Navy is worried about the effect the state and local shutdowns could have on its shipbuilding and repair efforts. “It's a national emergency and this is critical national infrastructure,” so the issue is, “how do we orient quickly to get at this aggressively and try not to be reactive in nature.” Ingalls Shipbuilding in Mississippi is currently building the USS Richard M. McCool (LPD 29) and Harrisburg (LPD 30), and would be in line to start work on the next ship in the class. The Navy is also pushing to move forward the award for a landing craft program that was slated to kick off later this year. Funding for the new LPD was approved in the 2020 NDAA defense policy bill which authorized $525 million for the LPD Flight II program. Any breaks in the build and repair schedule would throw the Navy's planned deployments out of whack but also could be devastating to the thousands of small businesses across the country that literally provide the nuts and bolts that make the complex machinery that powers the fleet. “Nobody right now is in the position to float gaps,” Geurts said. His staff has done a detailed analysis of the Navy's industrial base. They are looking for ways to help the smaller companies not only through moving forward orders, but also finding money for research and development that would help small, innovative companies. “I hear stories of second-, third- and fourth-tier suppliers that were worried about going out of business, worried about how they would keep paying their salaries, and our ability to move and accelerate work into the defense base and then have that be pushed out to the suppliers is absolutely critical, because if they're not there it won't matter when we're ready to recover,” Geurts said. Geurts is gathering all of the large shipbuilders and shipyard owners several times a week to check on the status of the workforce and what problems they see coming if the current crisis continues. At the center of these worries is the nation's largest shipbuilder, Huntington Ingalls, which is the only company that builds both Nimitz and Ford-class aircraft carriers, in addition to sharing work on Virginia-class submarines with Electric Boat. The company has taken steps to attempt to apply social distancing at its shipyards, and has staggered shifts to accommodate workers who might now need to work different hours, company officials say. In an interview earlier this week, several Huntington executives told me they've reached out to over 2,000 suppliers in 48 of the 50 US states, and are working to speed up and push contracts as far down the supply chain as possible to keep these small businesses running. “We're gonna have to brave the storm together and especially some of the smaller suppliers,” said Lucas Hicks, vice president of new construction aircraft carrier programs. “We need their products today, but we also need them in 90 days, so we want to help them brave the storm,” he added. “We've actually changed some payment terms on some of our supplier contracts to try to make sure that we can front them what they need to stay afloat. We're doing some creative stuff to try and help them be able to weather the storm.” The company hasn't seen any reduction in parts received yet, but acknowledges that the situation changes on a daily basis, as different parts of the country feel the pain of local shutdowns in different ways. Lucas said Huntington does not anticipate it will stop work, but is allowing employees the option of working from home and providing liberal leave to others. Eventually all of this “will have an impact,” especially if the shutdowns are prolonged. “At some point, if it extends for months and months at the rate we're on, it would have an impact but it's too early to tell.” Geurts appears to see things the same way. The crisis and its downstream effects is “going to have both a time dimension and geography dimension, and so it will remain a fluid situation,” when it comes to how much the defense industry, and the navy, are affected, Geurts said. https://breakingdefense.com/2020/04/navy-rushes-shipbuilding-deals-to-keep-yards-going-in-panddemic