Back to news

May 25, 2021 | International, Aerospace, Naval, Land, C4ISR, Security

Contracts for May 21, 2021

On the same subject

  • COVID cash crunch still hurting small defense firms

    April 27, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    COVID cash crunch still hurting small defense firms

    By: Joe Gould WASHINGTON ― Cash flow for small defense contractors is continuing to suffer under the coronavirus pandemic, according to a survey by the National Defense Industrial Association. The survey echoes warnings from the Pentagon that these firms, part of a vast network of suppliers that makes up the defense-industrial base, are especially vulnerable. The Pentagon this week announced it will make $3 billion in new “progress payments" to increase cash flow to prime contractors, expecting the money would then trickle down. Of the NDIA survey respondents: 67 percent of companies with less than $1 million in annual revenue have seen a cash-flow disruption. 60 percent said the crisis has interfered with their cash flow. 60 percent expect to have long-term financial and cash-flow issues stemming from the crisis. 66 percent said accelerated payments from the Defense Department or prime contractors would be the most helpful step toward business recovery. L3Harris Technologies said this week it will issue more than $100 million in payments to its small suppliers. Lockheed Martin announced Friday it executed $256 million in accelerated payment toward its $450 million goal. Both of these promised followed the Pentagon's announcement this month that it will boost progress payment rates from 80 percent to 90 percent for large companies, and to 95 percent for small businesses. The payments are made to contractors, usually on a monthly basis, for costs incurred and work performed under a contract; a 90 percent rate means that if $1 million in expenses are submitted on the program, the Defense Department will reimburse $900,000. Sixty-six percent of the respondents also said it would help them to receive flexibility on the performance of their contracts. Seventy-two percent expected to avoid overruns on their firm fixed-price contracts as a result of disruptions caused by COVID-19. On Thursday, acquisitions officials with the Army said they expect costs to rise, and in response will guard against program slips and closely watch vulnerable lower-tier companies with less slack in their workforces. Pentagon officials anticipate workforce and supply chain issues will yield a three-month delay across the majority of its Major Defense Acquisition Program portfolio. “The supply chain does have some challenges, and that's probably where the vast majority of any slips would occur that are tied to individual companies,” said Bruce Jette, the Army's acquisition chief. “These companies are small, and if one person gets COVID in the company, the next thing you know you've lost 14 days with the company because everybody that didn't get it is in quarantine.” As of April 10, 769 small businesses responded to the NDIA survey. The number of companies expecting cash-flow disruptions was slightly lower last month, when 458 small businesses responded. Factoring into cash-flow problems, according to the NDIA, are cuts to billable hours, delayed payments from prime contractors and government customers, a lack of telework options or schedule flexibility in contracts, and shelter-in-place orders that prevent employees from working. Beyond revenue expectations, meeting contract obligations and access to capital are where small businesses are taking the biggest hits during the pandemic. Other areas of difficulty were workforce availability, access to secure facilities, contracting officers accessibility, clear information from the Defense Department, confidence in the supply chain, and stock and cost of materials. The technology and services sectors reported more disturbances from the crisis than the manufacturing sector, NDIA noted. And businesses with fewer than 50 employees are feeling the brunt harder than businesses with more than 500 employees. Defense Contract Management Agency data this week showed that 106 out of 10,509 primary Pentagon contractors are closed, and 68 companies closed and then reopened. Of 11,413 subcontractors, 427 were closed, with 147 having closed and reopened. https://www.defensenews.com/2020/04/24/covid-cash-crunch-still-hurting-small-defense-firms/

  • Army leaders see Latin America as backyard test bed for military tech

    October 11, 2023 | International, Land, Security

    Army leaders see Latin America as backyard test bed for military tech

    The region's proximity, partners and security challenges provide ways to test out new concepts and tech.

  • Battelle Embarks on DARPA ECHO Program

    July 30, 2019 | International, C4ISR

    Battelle Embarks on DARPA ECHO Program

    COLUMBUS, Ohio--(BUSINESS WIRE)--Battelle has won an Associated Contractor Agreement for a new Defense Advanced Research Projects Agency (DARPA) Epigenetic Characterization and Observation (ECHO) program. The aim is to build a field-deployable platform technology that quickly reads someone's epigenome and identifies signatures that indicate whether that person has ever—in his or her lifetime—been exposed to materials that could be associated with weapons of mass destruction (WMD). Battelle will examine blood samples from people known to have handled materials associated with biological, chemical, explosive, pesticide or herbicide contaminants and compare those results to control subjects who have not handled these materials to identify unique epigenome signatures. The epigenome is biology's record keeper. Though DNA does not change over a single lifetime, a person's environment may leave marks on the DNA that modify how that individual's genes are expressed. This is one way that people can adapt and survive in changing conditions, and the epigenome is the combination of all these modifications. Though modifications can register within seconds to minutes, they imprint the epigenome for decades, leaving a time-stamped biography of an individual's exposures. Whereas current forensic and diagnostic screening technologies only detect the immediate presence of contaminants, the envisioned ECHO technology would read someone's epigenome from a biological sample even when other physical evidence has been erased. “We'll be developing methods to identify these signatures and how to interpret them for attribution—what did the person handle, when and for how long,” said Battelle Biologist and Principal Research Scientist Rachel Spurbeck, PhD, who is leading the effort. “This will even allow for diagnosing illnesses in individuals as a result of their exposure.” About Battelle Every day, the people of Battelle apply science and technology to solving what matters most. At major technology centers and national laboratories around the world, Battelle conducts research and development, designs and manufactures products, and delivers critical services for government and commercial customers. Headquartered in Columbus, Ohio since its founding in 1929, Battelle makes the world better by commercializing technology, giving back to our communities, and supporting science, technology, engineering and mathematics (STEM) education. For more information, visit www.battelle.org. Media Contacts For more information contact Katy Delaney at (614) 424-7208 or at delaneyk@battelle.org or contact T.R. Massey at (614) 424-5544 or at masseytr@battelle.org. Contacts Katy Delaney (614) 424-7208 delaneyk@battelle.org T.R. Massey (614) 424-5544 masseytr@battelle.org https://www.businesswire.com/news/home/20190729005374/en

All news