''No company is immune''€™: Supply chain woes weigh on defense firms

On the same subject

• 

  July 24, 2019 | International, Aerospace

  Armée de l'Air : campagne d'essai pour les C-130H modernisés par Collins Aerospace

  Le premier des Lockheed Martin C-130H de l'Armée de l'Air doté de la nouvelle avionique Collins Aerospace a débuté sa campagne d'essais en vol et de certification sur la base aérienne de Bordeaux-Mérignac. L'avion est équipé de la solution avionique Collins Aerospace Flight2™ et du double affichage tête haute (HUD), HGS-4500, avec système de vision améliorée multibande, EVS-300, pour améliorer la perception des pilotes de leur environnement. Une caméra infrarouge pour la détection d'objectifs a également été intégrée au HGS. Ensemble, ces solutions permettent d'améliorer les capacités opérationnelles des appareils pour répondre aux besoins spécifiques des missions. “Avec Flight2™, l'Armée de l'Air française dispose d'une avionique de dernière génération et d'une solution optimisée de support et de maintenance pour mener à bien ses missions exigeantes dans le monde entier,” a déclaré Olivier Pedron, directeur général, avionique de Collins Aerospace en France. Après le premier vol et la qualification par la direction générale de l'armement (DGA) des deux premiers appareils rénovés, Collins Aerospace et Sabena Technics fourniront des kits de modification au Service industriel de l'aéronautique (SIAé) pour l'installation en série sur les 12 C-130H restants de la flotte française. Le contrat de modernisation avait été attribué en septembre 2016, par la DGA, à Collins Aerospace pour la maîtrise d'ouvrage, conformément à sa certification FRA-21J, aux côtés de ses partenaires Lockheed Martin et Sabena Technics. Flight2™ permettra aux C-130H français un accès sans restriction à l'espace aérien mondial tel que défini par l'Organisation de l'Aviation Civile Internationale (OACI), leur procurant des capacités tactiques accrues tant sur les thé'tres d'opérations que dans l'espace aérien civil. De plus, il permet une communalité pour le support et la maintenance avec les autres plateformes de l'Armée de l'Air telles qu' E-3, AWACS, et KC-135 ainsi qu'une communalité avec les HUD du C-130J. https://www.air-cosmos.com/article/arme-de-lair-campagne-dessai-pour-les-c-130h-moderniss-par-collins-aerospace-21508

• 

  June 10, 2020 | International, Naval, Security

  White House Orders New Icebreaker Strategy For Coast Guard

  “I certainly hope the Pentagon is not going to come back after studying this again, saying there's no need," for more Arctic infrastructure, said Sen. Dan Sullivan. "The infrastructure is not fine. It doesn't exist. And we need it to exist.” By PAUL MCLEARYon June 09, 2020 at 5:37 PM WASHINGTON: The White House today ordered a major rethink of current plans for a new Coast Guard heavy icebreaker fleet, calling for the ability to launch drones, install intelligence-collection systems, and consider “defensive armament” to “defend against threats by near-peer competitors” and consider the “potential for nuclear-powered propulsion.” The call to consider new designs for at least three ships already slated to be built over the next half-decade is a sure sign of growing concern in Washington over Russian and Chinese advances in putting more heavy, nuclear-powered ships in the water while the US remains stuck with just two 40 year-old operational breakers. The Coast Guard already has plans for three new, non-nuclear icebreakers to be built by 2026, with several medium icebreakers to follow in later years. It's not clear if the White House is asking for a complete redesign of those ships, but the memo clearly indicates a desire to expand their capabilities significantly. The memo gives acting Homeland Security secretary Chad Wolf, in conjunction with the State and Defense departments, just 60 days to come up with a plan to run a study of how to build a new icebreaking fleet that consists of “at least” three heavy polar-class security cutters that are “operationally tested and fully deployable by Fiscal Year 2029.” The ships should be able to perform “the full range of national and economic security missions (including the facilitation of resource exploration and exploitation and undersea cable laying and maintenance),” the memo states, a clear nod to worries that both China and Russia are rushing to secure natural resources long trapped under the polar ice caps. The Pentagon and Navy are slated to take part in the snap 60-day assessment, which includes a demand for recommendations for least two new bases in the US, and at least two new international bases. At least one of those bases would likely be in Alaska, meeting a years-long demand from Alaska Senator Dan Sullivan, who is waiting for the Pentagon to finish a study on a potential strategic port in his state later this summer. Sullivan managed to get language in the 2020 defense authorization bill ordering the Pentagon to study new ports in Alaska, after years of the military saying there was no need. “At long last, the federal government has woken up to the fact that the Arctic is a region of great strategic competition,” the senator said in an emailed statement. “Unfortunately, our adversaries are well ahead of the United States when it comes to Arctic infrastructure.” Noting his efforts to bring the Pentagon's attention to these issues, he added, “this presidential memo will add weight to these efforts and will send a signal to our adversaries and those who are laying claim to the Arctic that the United States will not cede ground in this strategic location.” Pentagon officials have said privately that refurbishing existing ports in Alaska for military use would be expensive, and they're not fully convinced there is a need. Sullivan, aware of those arguments, added, “I certainly hope the Pentagon is not going to come back after studying this again, saying there's no need. The infrastructure is not fine. It doesn't exist. And we need it to exist.” One congressional staffer who is familiar with with the issue said part of the problem Arctic advocates have encountered is that “there is no clear official within the Department of Defense that handles Arctic issues,” and despite some efforts on Capitol Hill to create a new deputy assistant secretary of defense for the Arctic, military leaders see the region as “not as high a priority as some other things — the Department of Defense seems to be one of the last federal agencies in the country to understand the strategic importance and relevance of the Arctic.” While the Coast Guard already has an icebreaker plan in hand, this new White House push might scramble those if the executive branch demands significant changes to the class, the first of which is slated to begin construction in 2021. As Washington ponders the possibility of building nuclear-powered icebreakers, two Russian companies are already at work building the world's most powerful nuclear breaker, the first step in an ambitious new Arctic strategy Moscow hopes will open lucrative new shipping routes in the Arctic. The country currently operates 40 icebreakers along the Northern Sea Route in the high north. Moscow has also unveiled plans to build dozens of non-nuclear new icebreakers in the coming years, including at least 13 heavy icebreakers, nine of which would be nuclear-powered, if plans laid out by Russian President Vladimir Putin hold. For its part, China has already matched the US in the number of icebreakers it has in its fleet, though only one of the two was built domestically. Beijing has expressed a desire to float a nuclear-powered breaker at some point in the future, though plans remain unclear. The first ship, MV Xuelong, was built at a Ukrainian shipyard but has since been upgraded by Chinese shipyards. https://breakingdefense.com/2020/06/white-house-orders-new-icebreaker-strategy-for-coast-guard

• 

  July 23, 2020 | International, Aerospace

  Lockheed, Boeing Got Half of $2.3 Billion in Pentagon Virus Cash

  By Anthony Capaccio Lockheed Martin Corp. and Boeing Co. received about half of an initial $2.3 billion in increased, accelerated payments the Pentagon provided contractors to help companies' cash flows after the Covid-19 pandemic erupted in the U.S. The initial infusion was included in $13 billion in regular, periodic progress payments paid to the companies, according to newly released defense figures. Lockheed Martin initially received $685 million while Boeing got $670 million, according to a Pentagon statement to Bloomberg News In a separate statement, Lockheed Martin said that modifications to existing contracts resulted in additional accelerated payments to the company, increasing its total received to $1.1 billion by June 30, “all of which we have flowed down to our supply base.” Lockheed and Boeing are the top two U.S. defense contractors, so they were expected to get the biggest share of the funds. Other companies receiving the accelerated payments include: Raytheon Technologies Corp.: $410 million L3 Harris Technologies Inc.: $74 million The Boeing/Lockheed United Launch Alliance LLC: $70 million Northrop Grumman Corp.: $70 million Another $321 million went to other companies. The companies are benefiting from a policy the Pentagon announced in March, just as the pandemic was building in the U.S., that provided for faster, and bigger, payments to companies. The move was intended to guarantee that critical national security contracts -- including the production of key weapons systems and supplies -- weren't interrupted by companies having problems accessing cash or credit. The extra funding would ensure production lines were able to stay open. The Defense Department's move meant that larger firms could get as much as 90% of their payments for contracts in progress, up from 80% previously. For smaller businesses, which might be more susceptible to virus impacts, the rate rose to 95% from 90%. As the initial funds were identified, the Pentagon “worked with each of the major primes to ensure that they were identifying at risk companies in their supply chain and flowing down payments to those companies, as well as all companies doing work for the prime,” said the statement. The major contractors “have been flowing down payments, in some cases more than the payments received from DOD,” it said. Pentagon officials initially estimated in March about $3 billion would be paid but that number included a potential $700 million payment on a long-standing contract that further analysis deemed was not necessary. In addition to the accelerated progress payments, the Air Force in April released to Boeing $882 million withheld from the company over current deficiencies with its KC-46 military tanker program as part of Covid-19 relief efforts. After the program was announced, Senator Elizabeth Warren, who serves on the Armed Services Committee, expressed concern about its oversight. In particular, the Massachusetts Democrat questioned whether companies might try to divert the increased payments for stock buybacks, dividends or executive pay. Pentagon Undersecretary for Acquisition and Sustainment Ellen Lord in a May 15 letter to Warren said that hasn't been the case. “Companies do not divert payments for incurred costs to share buybacks, dividends or executive salaries because contractors must have already incurred costs before they receive the increased progress payments,” Lord wrote. https://www.bloomberg.com/news/articles/2020-07-22/lockheed-boeing-got-half-of-2-3-billion-in-pentagon-virus-cash