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/

On the same subject

October 9, 2019 | International, C4ISR

How airmen can work together for persistent ISR
By: Brig. Gen. Gregory Gagnon and Lt. Col. Nishawn Smagh There is always a next war. Great power competition is here. Now is the time, while the United States maintains a position of strength, to ensure we are not outmatched, out-thought, or out-witted. Rapidly and realistically positioning the Intelligence, Surveillance, and Reconnaissance enterprise for first-mover advantage in today's data-driven environment is beginning with purposeful urgency. The past paradigm: crew-to-aircraft model During our careers, the Air Force ISR enterprise grew in both capability and capacity. In the late 1990s, the Air Force operated an ISR enterprise dominated by manned aircraft, each with their own specialized team operating unique systems that turned data into initial intelligence. Only a few organizations could turn raw airborne sensor data into intelligence in near-real time. We were only beginning to move data to the analyst, versus deploying the analyst to the data. As battlefield demand of ISR grew, we scaled up. We were fortunate to help build and execute airborne intelligence operations on a global scale, connected via a global network — we called them “reachback” operations. Reachback operations were the first step in transmitting ISR sensor collection across the globe in seconds. Even today, few nations can conduct this type of ISR operational design. The enterprise has continued to advance, achieving fully distributed operations around the world. We also made it possible to remove humans from aircraft, allowing missions to fly nearly three times longer and expand the data available to exploit. Correspondingly, the Air Force increased the number of organizations that could accept data and create intelligence. Following 9/11, our nation's needs changed; the fight necessitated the Air Force grow its capacity to deliver intelligence for expanded operations in the Middle East. We bought more unmanned vehicles, trained more ISR Airmen, and created more organizations to exploit data. Collection operations were happening 24/7 and most sorties required multiple crews to fly, control sensors and turn collection tasks into intelligence. As reachback operations grew, they became the Distributed Common Ground System and developed the ability to exploit aircraft sensor data. This growth was significant, but at the tactical level we employed the same crew model and simply grew at scale. This resulted in manpower growth, but also in disparate, distributed crews working similar tactical requirements with little unity of effort or larger purpose. This limited the ability of ISR airpower to have broader operational effects. While suitable for counter-terrorism, history tells us this approach is ill advised for great power conflict. Observe and orient: the data explosion and sense-making The traditional crew-to-aircraft model for exploitation must fast forward to today's information environment. The Pentagon has shifted its guidance to this new reality. The Defense Department recently declared information a seventh core function, and the Air Force's formal ISR flight plan maps a course for digital-age capabilities to turn information into intelligence. This “sense-making” must be able to handle both the complexity of a diverse information environment and scale to contend with an exploding volume of data. Access to expanded data sets, from diverse collection sources and phenomenology, is near and urgently needed. The Department's focus on artificial intelligence and machine learning in this realm remains stable and necessary. The next step is to retool how we task, organize, and equip both intelligence collection and analytic crews. As the Pentagon focuses on open architectures, artificial intelligence and machine learning, and data standards, the field is rapidly moving out. Air Combat Command , the Air Force lead command for ISR, is attacking the crew-to-aircraft model to test a sensor-agnostic approach using multiple data sources to address intelligence requirements. Cross-functional teams of Airmen are now assigned broader operational problems to solve, rather than a specific sensor to exploit. This will change joint and service collection management processes. ACC is tackling this future. We are supporting Air Force commanders in Europe and the Pacific with a pilot project that allows Airmen to explore these sensor-agnostic approaches. An additional element to our future success is partnering with our joint and allied partners, as well as national agencies, to bring resources, tools, and insights to bear. As we field the open architecture Distributed Common Ground System, we are shifting the focus from airmen operating specific sensors to airmen leveraging aggregate data for broader analysis. Headquarters Air Force and ACC are installing technologies to ensure readiness for the future ISR enterprise. Cloud technology paired with artificial intelligence and machine learning promises to speed human-machine teaming in generating intelligence across warfighting domains at the speed and scale necessary to inform and guide commanders. Underpinning this effort is a new data strategy and agile capability development for rapid prototyping and fielding. The Defense Department and the Air Force must continue to prioritize this retooling. Our adversaries see the opportunities; this is a race to the future. Situational awareness in the next war will require the development and fielding of AI/ML to replace the limited and manpower-intensive processes across the Air Force ISR enterprise. Employing AI/ML against repetitive data exploitation tasks will allow the service to refocus many of its ISR Airmen on AI/ML-assisted data analysis and problem solving. ISR and multi domain command and control ... enabling decide and act A headquarters-led initiative, with eyes toward a joint capability, is the creation of a collaborative sensing grid that operates seamlessly across the threat spectrum. Designs call for a data-centric network of multi domain platforms, sensors, and airmen that work together to provide persistent ISR. Equipped with manned and unmanned platform sensors capable of computing via AI/ML, these capabilities will link commanders to real-time information, plus tip and cue data from sensors-to-sensors, joint commanders, and weapons. This collaborative sensing grid is a foundational element for multi domain command and control . The vision of MDC2 is to outpace, outthink and outmaneuver adversaries. Creatively and rapidly applying new technology to operational problems is a long-held characteristic of airmen. Our DCGS airmen are no different. Non-material solutions deserve as much attention as hardware. This pilot project is our vanguard initiative to prepare for rapidly changing future systems environments. https://www.c4isrnet.com/opinion/2019/10/08/how-airmen-can-work-together-for-persistent-isr/
May 14, 2018 | International, Aerospace

Army, Uber will partner on silent rotor technology for UAVs
By: Charlsy Panzino The Army is partnering with Uber to create safer, more lethal unmanned aerial vehicle missions. The new effort between the Army Research Laboratory and the rideshare company, announced on Tuesday, aims to create silent rotor technology. The goal is to reduce the noise caused by traditional UAV rotors. “When UAVs are doing an [intelligence, surveillance and reconnaissance] mission, they're out there collecting or observing to collect intelligence or to do surveillance,” Jaret Riddick, director of ARL's Vehicle Technology Directorate, told Army Times after the announcement. That mission is hampered, however, when the adversary can hear the UAV coming, Riddick said. “They know a certain noise in the distance means a certain type of operation is underway,” he said. “When you can do that with the advantage of not being detected ... it changes how you execute a mission.” Uber Elevate, under which the air taxi side of the company falls, is interested in noise-reduction technology because its vehicles would be operating in dense urban areas. Since Uber is a technology company, ARL will build the UAVs for testing the technology. One kind of technology Uber is looking at to solve the noise problem is the idea of having stacked rotors on a vehicle that spin in the same direction. Traditionally, UAVs have stacked rotors that spin in opposite directions. “When those rotors are spinning in opposite directions, they create a type of turbulence that contributes to noise in the operation,” Riddick said. “By having them spin in the same direction and adjusting their position to one another, research has shown that using this technique can offer advantages in performance while reducing the noise compared with traditional operations.” One of these performance advantages is more lift capability, he said. Last year, Uber announced the Dallas-Forth Worth area as its first location for flight demonstrations in 2020, and Riddick said Uber will collaborate with ARL-South researchers in Austin. Uber and ARL-South will build the infrastructure needed for testing, Riddick said, adding that progress will be checked every six months. “Uber is proud to be partnering with ARL on critical research on flying vehicle innovations that will help create the world's first urban aviation rideshare network,” Eric Allison, head of Uber Elevate, said in a news release. “Our first jointly-funded project will help us develop first of its kind rotor technology that will allow for quieter and more efficient travel. We see this initial project as the first of many and look forward to continued collaboration with the lab on innovations that will make uberAIR a reality.” https://www.armytimes.com/news/your-army/2018/05/08/army-uber-will-partner-on-silent-rotor-technology-for-uavs/
March 1, 2019 | International, Other Defence

DARPA: Taking the Next Step in Quantum Information Processing
Universal quantum computers with millions of quantum bits, or qubits – which can represent a one, a zero, or a coherent linear combination of one and zero – would revolutionize information processing for commercial and military applications. Realizing that vision, however, is still decades away. The problem is the performance and reliability of quantum devices depend on the length of time the underlying quantum states can remain coherent. If you wait long enough, interactions with the environment will make the state behave like a conventional classical system, removing any quantum advantage. Often, this coherence time is significantly short, which makes it difficult to perform any meaningful computations. To exploit quantum information processing before fully fault-tolerant quantum computers exist, DARPA today announced its Optimization with Noisy Intermediate-Scale Quantum devices (ONISQ) program. This effort will pursue a hybrid concept that combines intermediate-sized quantum devices with classical systems to solve a particularly challenging set of problems known as combinatorial optimization. ONISQ seeks to demonstrate the quantitative advantage of quantum information processing by leapfrogging the performance of classical-only systems in solving optimization challenges. A Proposers Day for interested proposers is scheduled for March 19, 2019, at the Executive Conference Center in Arlington, Virginia: https://go.usa.gov/xEp8M “A number of current quantum devices with more than 50 qubits exist, and devices with greater than 100 qubits are anticipated soon,” said Tatjana Curcic, program manager in DARPA's Defense Sciences Office. “Qubits' short lifetime and noise in the system limit how many operations you can do efficiently, but a new quantum optimization algorithm has opened the door for a hybrid quantum/classical approach that could outperform classical systems.” Solving combinatorial optimization problems – with their mindboggling number of potential combinations – is of significant interest to the military. One potential application is enhancing the military's complex worldwide logistics system, which includes scheduling, routing, and supply chain management in austere locations that lack the infrastructure on which commercial logistics companies depend. ONISQ solutions could also impact machine-learning, coding theory, electronic fabrication, and protein-folding. ONISQ researchers will be tasked with developing quantum systems that are scalable to hundreds or thousands of qubits with longer coherence times and improved noise control. Researchers will also be required to efficiently implement a quantum optimization algorithm on noisy intermediate-scale quantum devices, optimizing allocation of quantum and classical resources. Benchmarking will also be part of the program, with researchers making a quantitative comparison of classical and quantum approaches. In addition, the program will identify classes of problems in combinatorial optimization where quantum information processing is likely to have the biggest impact. “If we're successful, the outcome of ONISQ will be the first demonstration of a quantum speedup compared to the best classical method for a useful problem,” Curcic said. ONISQ seeks multidisciplinary teams with expertise in experimental and theoretical physics, computer science and applied mathematics among others. DARPA plans to release a Broad Agency Announcement (BAA) solicitation in several weeks at: http://go.usa.gov/Dom. https://www.darpa.mil/news-events/2019-02-27

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