Back to news

March 18, 2024 | International, Aerospace

Brazil's Embraer sees supply chain bottlenecks hampering 2024 deliveries

On the same subject

  • COVID-19 Won’t Slow New Army Weapons: McCarthy, Murray, Jette

    April 24, 2020 | International, Land

    COVID-19 Won’t Slow New Army Weapons: McCarthy, Murray, Jette

    While some prototype deliveries and field tests are being delayed, Army leaders said, there's enough slack in the schedule that combat units will still get the new tech on time. By SYDNEY J. FREEDBERG JR.on April 23, 2020 at 2:40 PM WASHINGTON: The Army and its contractors are coping with the COVID-19 pandemic so well that the service expects no delay in the fielding of future weapons, the Army Secretary and his two top modernization officials told reporters today. The “rigorous” review of acquisition programs for the 2022 budget request is also still on schedule, Sec. Ryan McCarthy said. “It's just amazing how quickly they've adapted, kept their workforce engaged, and are protecting cost, schedule, and performance on these weapons systems,” said McCarthy, recently returned from a visit to BAE and General Dynamics facilities in Detroit. “Also I'm very proud of Dr. Jette's and Gen. Murray's performance during this crisis, working on things like progress payments for manufacturers, trying to help them get access to small business loans, the managing of second- and third-tier suppliers.” “Right now, all the companies that were closed for any period of time are reopened,” said Assistant Secretary Bruce Jette, the service's civilian acquisition chief. One BAE worker was infected, resulting in a week-long shutdown of a combat vehicle assembly line – you can't weld armor plate over your telephone, Jette noted – but the company has now restarted production with new precautions in place. The company and the union have agreed to give up their traditional week-long shutdown for summer vacation to catch up. The Boeing CH-47 helicopter plant in Philadelphia also shut down for 10 days, Jette reported, but they're back up and running as well. He's most worried about smaller subcontractors, where a single COVID-19 case can force the entire workforce to be quarantined for 14 days, so he's tracking that closely. “I keep track on a daily basis of 63 pages of supply chain [data],” Jette said. “Our industry partners have been really good about opening their books all the way down to their sub-suppliers and keeping us well-informed — they contractually don't have to do that but they have.” Some deliveries of prototypes have been delayed, said Gen. John “Mike” Murray, chief of Army Futures Command. But, so far, those delays are measured in weeks and there's sufficient slack in schedules to catch up later this year, he said, which means programs will proceed to production and fielding on time. What's particularly tricky for the Army is that, after decades of dumping “good ideas” on soldiers only to find they didn't actually work, it's now systematically letting soldiers try out prototypes hands-on. These soldier touchpoints require troops to work together in the field, often side-by-side with contractors who record their feedback and make some fixes on the spot. That's difficult given pandemic precautions – but not impossible. Other types of testing allow a little more social distance, and work from engineering design to budget reviews can take place entirely online. Gen. Murray gave a rundown of key programs: The next flight test of Lockheed Martin's Precision Strike Missile (PrSM) will take place as scheduled on April 30th, Gen. Murray said. “I'm very confident,” he declared, to the point he's already planned his flight to go observe. On the other hand, the third big soldier touchpoint test for the IVAS targeting goggles, scheduled for this summer, has been delayed to the fall. That's not just because of social distancing, Murray said, but also because a Microsoft subcontractor ran into COVID-19 problems (they'll be back in operation this week). Because this would have been the first test of a fully militarized and ruggedized “form factor” of IVAS, which began life as a modified Microsoft HoloLens, it's too important to cut corners, he said. The program will be able to make up the lost time and deliver the final production version to troops on schedule, he said. There's been a six week delay in delivery of the three competiting prototypes for Next Generation Squad Weapon, meant to replace the M249 SAW. Once the weapons arrive, however, the Army will now get them into soldiers' hands in just two weeks, a month faster than originally planned, making up for most of that lost time. Field-testing of one contender for the new FTUAS drone is already underway at Fort Riley, as we've previously reported. Testing of another drone design at Fort Campbell is “a little bit delayed,” Murray said, but should start by the end of the month. The Limited User Test of the IBCS missile defense network has been postponed (again, as we've reported). But the equipment remains in place at White Sands Missile Range in New Mexico, Murray said, software updates continue, and the soldiers who spent months training to operate it will be back to do the test “this summer or early fall.” (The Army also previously announced it would postpone field tests of promising new Robotic Combat Vehicles). “In general,” Jette said, “we don't see any FUEs changing”: That's military jargon for “First Unit Equipped,” the crucial moment when enough of a weapon has been built to equip a significant combat unit. “We are tracking each program,” Jette said, not just the service's top priorities “but all of our over 600 programs, [and] none of them are at risk” of a delay so severe they can't recover. https://breakingdefense.com/2020/04/covid-19-wont-slow-new-army-weapons-mccarthy-murray-jette/

  • DoD Budget Cuts Likely As $4 Trillion Deficit Looms

    April 28, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    DoD Budget Cuts Likely As $4 Trillion Deficit Looms

    By THERESA HITCHENSon April 27, 2020 at 5:02 PM WASHINGTON: With the federal deficit expected to balloon to over $4 trillion in fiscal 2020 due to spending to pump the economy in the face of the COVID-19 coronavirus pandemic, downward pressure on the US defense budget is inevitable, several experts believe. “I think the budget comes down sooner rather than later,” Mackenzie Eaglen, resident fellow at the American Enterprise Institute, said bluntly in a webinar today. The best-case scenario is for flat defense budgets for the foreseeable future, but if history is a guide, the smart money is on defense budget cuts, explained Todd Harrison, DoD budget guru at the Center for Strategic and International Security (CSIS). “What has historically happened is, when Congress's fiscal conservatives come out and get serious about reducing the debt, reducing spending defense is almost always part of what they come up with for a solution,” he said. “So, we could be looking at a deficit-driven defense drawdown coming. ... At least history would suggest that that is a real possibility.” Indeed, even as Congress is pulling out all the stops trying to assist DoD and the defense industrial base to weather the COVID-19 coronavirus pandemic, DoD already is being eyed as the future deficit bill-payer, Eaglen told the webinar. “DoD is at the top of the list,” she said. Eaglen added that, at a more macro-level, the budget crunch could force DoD to re-look the goals of the 2018 National Defense Strategy (NDS) with an eye to downsizing. “There's going to be an impact across the board,” she said. “There probably will be a total relook — at even the NDS fundamentals, and what mission is going to have to go — in response to this.” Harrison noted that already DoD has been looking at flat budgets through 2021, which has caused it to have to take some risks as it tries to juggle divesting in high-maintenance legacy systems with investing in future programs while maintaining readiness to handle a possible peer conflict with Russia and/or China. “Just to divest legacy systems and invest in new ones and try to maintain, or slightly grow, force structure, DoD was already saying that it would need three to five percent real growth each year in the defense budget, going forward, just to fully execute that,” he said. This means that DoD leadership is going to face even more difficult decisions in the future, Harrison explained. “Now we're looking at an environment where the budget might be flat at the best case or trending down over time. Something's gonna have to give. And so, if DoD really wants to protect these key modernization programs, not only is it going to have to divest legacy systems, it's going to have to divest them faster, and it's going to have to make some reductions in force structure that's going to incur risk.” More immediately, Harrison said, as Congress moves over the next few months to pass a fourth, or even a fifth, economic stimulus package DoD already is signaling that it hopes to see a number of its “unfunded requirements” stuffed into those bills. “DoD is saying: ‘hey, if you want to fund more things for DoD to help stimulate the economy, and help the defense industry, well, here's a list you already have that you can pick from.” DoD's unfunded priorities list — the annual wish list of programs it would like to fund if only there was more money in the top-line — for 2021 includes a total of $35.9 billion for programs across the military services and the combatant commands. The Pentagon might also petition Congress for greater authority to use operations and maintenance funds appropriated but not spent due to work slowdowns to short up programs facing cost overruns because DoD paid contractors for work supposed to be done, but not actually done, while employees are home-bound due to the pandemic, Harrison said. “DoD has implemented the CARES Act implementation, saying that they would pay for paid leave for employees of defense industry firms that are unable to report to work. And so that cost is covered,” Andrew Hunter, who works on defense industrial base issues at CSIS, explained. “Those folks aren't necessarily going to be laid off; they will be kept on the payroll and paid. And again, that will create some costs down the road to then pay those folks to do the actual work that they're originally scheduled to do.” Most of the nearly $10.5 billion in the CARES Act, signed by President Donald Trump on March 27 to help DoD protect itself from the impacts of the pandemic goes into O&M accounts, according to CSIS. That said, some $1 billion goes to procurement funding, with an eye on health-related equipment. Further, it includes some $1.5 billion in the Defense Working Capital Fund, which allows DoD to make investments in things like depot maintenance, transportation and supply management in the near term and recoup the costs through future year pricing deals. However, the bill grants DoD a good deal of flexibility to move money around — with the exception of banning any funding for Trump's southern border wall construction. https://breakingdefense.com/2020/04/dod-budget-cuts-likely-as-4-trillion-deficit-looms/

  • Senate’s defense bill looks to pump money into shipbuilding suppliers

    June 12, 2020 | International, Naval

    Senate’s defense bill looks to pump money into shipbuilding suppliers

    By: David B. Larter and Joe Gould WASHINGTON — Despite howls of criticism from Congress over the Navy's seven-ship budget request earlier this year, the Senate Armed Services Committee's markup of the National Defense Authorization Act stopped short of adding extra ships. Instead, lawmakers are opting to authorize the purchase of long-lead-time materials to keep the industrial base healthy. With submarine builders under strain from the coronavirus pandemic and a dearth of suppliers, Congress had sought to add a second Virginia-class submarine. But now the SASC has used its annual defense policy bill to authorize about $472 million for long-lead procurement “so they can be ready to go, if not this year, than at the next opportunity,” Sen. Jack Reed, D-R.I., the committee's ranking member said Thursday. The strategy of authorizing long-lead-time materials, designed to keep steady business to critical suppliers and make canceling a ship that Congress has already spent money on more painful, was one the SASC used in other places as well. The strategy of authorizing long-lead-time materials is designed to maintain steady business for critical suppliers. It also has the benefit of making it difficult to cancel a ship on which Congress has already spent money. Several programs have already benefited from long-lead-time money, and for its part, SASC is looking to authorize money to the Arleigh Burke-class destroyer program, the amphibious assault ship program and the San Antonio-class amphibious transport dock program. On the submarine front, the president's budget requested only one Virginia-class sub for fiscal 2021 ,and staffers said fully funding a second sub would be unwise because the shipyard would be unable to use the money in a single year given the workload. “The other issue too is the shipyards are in the process of not only building the Virginia class, but Columbia class is also coming on,” Reed said. “They have extensive workload, but we have provided ... them with the ability to build that 10th submarine.” The Navy contracted with Electric Boat and Huntington Ingalls Industries to build nine Block V Virginia-class submarines in December. The long-lead-time money is intended to preserve an option to buy a 10th Virginia sub if it can be shoehorned into both companies' workflow without disrupting Columbia. SASC also provided language that approved the Navy's request to buy the first two Columbia-class submarines in tandem. In addition to the long-lead-time materials money for subs, the bill authorizes floating about $260 million for the Arleigh Burke class, which the Navy has talked about truncating; $500 million for the next two San Antonio-class ships; and an additional $250 million toward the ninth amphibious assault ship, LHA-9. Congress previously appropriated $1 billion in funding toward LHA-9, but the Navy did not request additional funds for FY21, according to the Congressional Research Service. The Senate Armed Services Committee approved its initial version of the FY21 NDAA on Wednesday for consideration by the full Senate. From there it is typically reconciled with the House's version, which the House Armed Services Committee will mark up on July 1. https://www.defensenews.com/naval/2020/06/11/senates-defense-bill-looks-to-pump-money-into-shipbuilding-materials/

All news