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U.S. Startups Seek to Claw Back China's Share of 'Technology Minerals' Market
U.S. Startups Seek to Claw Back China's Share of 'Technology Minerals' Market
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Opinion: American policymakers should not bet on corruption to hamstring PLA modernization.
September 7, 2021 | International, C4ISR
U.S. Startups Seek to Claw Back China's Share of 'Technology Minerals' Market
October 2, 2020 | International, Aerospace
Valerie Insinna WASHINGTON — The U.S. Air Force halted a delivery of the KC-46 yet again after problems with the electrical system were found on one new tanker slated to make its way to the service. The issue was first disclosed during an Oct. 1 hearing of the Senate Armed Services Committee, when Sen. Jeanne Shaheen, D-N.H., said that a KC-46 that was supposed to have been delivered Sept. 25 by Boeing to Pease Air National Guard Base had been delayed. “They just learned that that delivery was canceled due to electrical problems with the aircraft,” she said to Ellen Lord, the Pentagon's top acquisition official. In a statement, Boeing said a “minor electrical issue” on a single KC-46 was found by the company during acceptance tests. “In flight, one of the radar warning receivers is indicating a fault through the plane's fault management system,” Boeing spokesman Larry Chambers said. “We think it may be a poor electrical connection that needs to be re-seated. We are currently evaluating a fix. Resolving this has caused a minor delay to delivery of this single airplane. Boeing expects to conclude this activity within the next several days and is working with the Air Force on a new delivery schedule.” The issue is not a design or safety-of-flight issue that would pose risk to the aircrew, he added. But Shaheen, speaking at the hearing, expressed frustration with Boeing over its repeated difficulties designing and building the new tankers, with challenges over the life span of the program that have included wiring issues and problems with the vision system that allows boom operators to safely refuel other planes. “I've spoken to a whole number of officials from Boeing from our military leadership as recently as last week with Gen. [Jacqueline] Van Ovost, who is the head of Air Mobility Command, all of whom have assured me that we've had good conversations between the [Department of Defense] and Boeing, and that the problems are being worked out. We're not going to continue to see these challenges,” Shaheen said. “And yet we've got another aircraft that's not being delivered because of another problem. So how do we fix this? Because it is an ongoing challenge that's affecting our ability to our national security, long term if we don't get these refueling tankers up and running.” Lord responded that KC-46 problems have included design and engineering flaws as well as issues occurring during the manufacturing of the jet. “The KC 46 has been an extremely problematical program. I speak with Leanne Caret, the CEO of the defense side of Boeing, on a regular basis about it,” Lord said. “One issue is frankly the technical solution. That was the original design [and] is now being redesigned, but also we have had a myriad of manufacturing issues with [foreign object debris] and other issues.” However, she said the root cause of the problems is the fixed-price firm contract used for the KC-46 program, which makes Boeing financially responsible for any costs beyond the $4.9 billion ceiling. So far, Boeing has spent more than $4.7 billion in company funds on the KC-46 program — almost equivalent to the Air Force's own investment in the program. The Air Force plans to buy 179 tankers, 38 of which have already been delivered to the service. Seven KC-46s have gone to Pease ANGB. https://www.defensenews.com/air/2020/10/01/kc-46-deliveries-have-been-halted-due-to-electrical-system-problems/
April 29, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
Experts see domestic projects taking priority over national security in the coming years. After five straight years of growth, global defense spending is expected to decline in the coming years as nations deal with the economic fallout of the coronavirus pandemic, analysts say. In 2019, global defense spending topped $1.9 trillion, according to the Stockholm International Peace Research Institute's latest tally. The U.S. represents 38 percent of the world's defense expenditures and with China, the two superpowers account for 52 percent of the world's defense spending. But because of COVID-19, experts anticipate a shift government spending worldwide toward domestic projects and away from weapons and the military. “What we can expect is that spending [is] really going to decrease,” Nan Tian, a defense spending expert with the institute, said Tuesday during a Stimson Center webcast. “We've seen this historically following the [2008 and 2009 financial] crisis where many countries in Europe really started to cut back on military spending.” Even before the coronavirus sent the global economy into a tailspin, U.S. defense spending had been predicted to flatten in the coming years. Now with trillions of dollars being spent on massive coronavirus stimulus packages, flat defense spending levels could wind up being a best-case scenario. “In today's world with [coronavirus], flat defense budget, I think, is what everybody is hoping for because it could go the other direction; it could go negative,” Hawk Carlisle, president and CEO of the National Defense Industrial Association and a retired four-star commander of Air Combat Command and Pacific Air Forces, said in an interview Tuesday. “This is going to be years to climb out of.” One reason for the expected spending dip: the deficit. Regardless of the results of the November presidential and congressional elections, deficit reduction is likely to become a priority. A recent estimate pegs the 2020 deficit at $3.8 trillion. But it is expected that a Trump re-election would keep Republicans in more of a spending mood. “If the presidency goes to a Democrat, then Republicans are going to get more about being fiscal conservatives again sooner,” Todd Harrison, a defense budget expert with the Center for Strategic and International Studies, or CSIS, said during a Monday webcast. “If Trump wins a second term, we probably have another year or two reprieve from that.” Mackenzie Eaglen of the American Enterprise Institute is wary that lawmakers eager to reduce federal spending in the wake of coronavirus bailouts could enact a deficit-cutting measure akin to the Budget Control Act of 2011, which capped defense spending annually between 2013 and 2021. “The Budget Control Act by another name ... could come as fast as next [fiscal] year,” she said on the same webcast. While defense and security spending is typically a top priority of Republicans and defense-minded Democrats, stabilizing the U.S. economy and healthcare could become a higher priority regardless of who wins the election and control in Congress. Among voters in both parties, there is wide public support for reducing expensive overseas military interventions. DON'T MISS The Pentagon Will Use AI to Predict Panic Buying, COVID-19 Hotspots How China Sees the World Did the Coronavirus Escape from a Chinese Lab? Here's What the Pentagon Says The 1918 flu and the U.S. military Haircuts in a Time of Coronavirus? “[I]solationism may exert a countervailing force, as there is demand to steer resources away from defense and towards domestic needs (healthcare, education, jobs),” Byron Callan, an analyst with Capital Alpha Partners, wrote in an April 23 note to investors. “[W]e are seeing that awarding disproportionate resources to military spending may be weakening the resilience of other sectors in our economy,” Mandy Smithberger — director of the Straus Military Reform Project at the Center for Defense Information, part of the Project on Government Oversight — said on the Stimson Center webcast. “I think we are going to be seeing real political debate about how much money should go to military spending, how much we should be prioritizing arms sales and interests of the defense industry,” she said. Unlike the past decade when foreign arms sales, to some extent, were a backstop to weapon makers amid U.S. defense spending declines, this time around will likely be different since the world economy is dealing with coronavirus. Smithberger said low oil prices could weaken the buying power in the region that spends heavily on U.S. weapons. While the U.S. and China remain the top two defense spenders, last year India and Russia jumped ahead of Saudi Arabia, which fell to fifth on the list. Germany climbed from ninth to seventh — jumping ahead of the U.K. and Japan. NATO allies collectively spent just over $1 trillion. All of that spending is likely to drop. https://www.defenseone.com/politics/2020/04/global-defense-spending-decline-expected-nations-deal-coronavirus/164997