COVID-19 Alters DOD View Of Supply Chain

Lee Hudson

The spread of the novel coronavirus has changed the way the Defense Department views its supply chain and the military is beginning to understand where the industrial base is “hyper efficient but very brittle,” according to the U.S. Navy acquisition executive.

The Pentagon is discovering there are components made by either a single supplier or an overseas supplier that is impacted by COVID-19, Hondo Geurts, assistant secretary of the Navy for research, development and acquisition, told reporters April 28.

Geurts said the COVID-19 pandemic is forcing the Pentagon to dig deeper into understanding various supply chain elements. This allows the military to begin making deliberate choices in where it needs additional “resilience” or “flexibility, he said.

“We meet now weekly at the department level to have a look through industrial base concerns, issues, hot spots or strategic challenges,” Geurts said. “That's one of the areas that I view, when we come out of this, that needs to be a normal course of business.”

The Pentagon identified Mexico and India as countries where the defense industrial base is being hit hard by supplier closures, Ellen Lord, under secretary of defense for acquisition and sustainment, told reporters April 20.

Geurts said it is not that other nations do not deem defense work as essential, but they are facing different circumstances with the novel coronavirus. His team is looking at various programs where there are overseas supply chains and understanding how they are operating or not during this time.

The Navy not only has many contracts with suppliers in Mexico, but also in Italy and Spain.

“We're just keeping an eye on it,” Geurts said. “We have flexibility and may have programs that rephase elements of construction or use stock we have on hand.”

Separately, since commercial aviation is being hard hit by COVID-19, the Pentagon is specifically focusing on propulsion contractors to put in orders during this time by rephasing work.

For example, the military did not intend to purchase an engine until three months from now, but because of the global pandemic will submit an order early.

“There'll be a natural limitation of funding, so we can't do that infinitely, but we're looking to leverage all the different tool sets we have,” Geurts said.

https://aviationweek.com/defense-space/supply-chain/covid-19-alters-dod-view-supply-chain