April 22, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
By: Joe Gould
WASHINGTON ― Factory closures in Mexico due to the coronavirus pandemic are hurting U.S. defense firms, and the Pentagon is urging America's neighbor to the south to reopen vital suppliers.
Because Mexico has not designated its aerospace and defense sector as essential, it's disrupting the supply chain for the American defense industrial base, particularly aircraft manufacturers. Though little known, Mexico's defense exports to the U.S. and beyond grew mightily over the last 15 years as defense firms large and small opened production facilities there.
Speaking to reporters at the Pentagon on Monday, Undersecretary of Defense for Acquisition and Sustainment Ellen Lord said she discussed the problem with U.S. Ambassador to Mexico Christopher Landau. She was planning a letter to Mexican Foreign Affairs Minister Marcelo Ebrard, she said, to ask that he, “help reopen international suppliers there.
“These companies are especially important for our U.S. airframe production.”
The pandemic has raised broader questions about America's dependence on global supply chains, particularly its reliance on China for key medicines and supplies. A Pentagon task force set up to monitor COVID-19′s impact on military suppliers found “several pockets of closure” linked to “international dependencies,” Lord said.
“Mexico right now is somewhat problematical for us but we're working through our embassy, and then there are pockets in India as well,” Lord said.
More broadly, only small fractions of the Pentagon's suppliers in the U.S. have closed due to the new coronavirus and distancing measures imposed to fights its spread, but the aviation, shipbuilding and small space launch subsectors have been hardest hit by disruptions from the virus, Lord said.
The Pentagon is using $250 million from last month's emergency stimulus funding to bolster defense firms, and it will funnel another $750 million to medical resources.
The Defense Department is also working with the White House budget office to request “billions and billions” of dollars in future fiscal packages to cover schedule delays, accelerated progress payments and other costs, Lord said.
A Pentagon spokesman declined to provide details about the products and companies impacted by the Mexican factory closures, and said Lord's letter to Ebrard was not being shared publicly because it contained sensitive information.
A 2013 United States International Trade Commission report noted that General Electric, Honeywell, Lockheed Martin and Eurocopter were among more than a dozen U.S. firms of various sizes that opened Mexican subsidiaries ― all part of a Mexican aerospace export boom.
Mexico's growth was fueled by its lower manufacturing costs, duty-free access to markets through the North American Free Trade Agreement, a Bilateral Aviation Safety Agreement with the U.S., and by Mexican government subsidies and workforce development efforts.
According to the Mexican Federation of Aerospace Industries, or FEMIA, Mexico's aerospace exports rocketed from $1.3 billion in 2004 to $9.6 billion last year. Lizcano said Mexico manufactures everything from avionics, to landing gear and fuselages, and it's in the top ten overseas suppliers to the U.S. aerospace and defense sector.
But coronavirus is blunting Mexico aerospace growth, and it is reverberating across its economy. Mexico's Labor Department said this month that the country had lost 346,748 jobs since mid-March due to the economic impact of the new coronavirus.
FEMIA is arguing publicly that its government should designate Mexico's aerospace and defense sector as “essential,” to synchronize with the U.S. and Canada, its general manager, Luis Lizcano, told Defense News. It's also coordinating with its trade association counterparts in the U.S. and Canada.
“What we're asking is that we standardize in this sector because we're going to break with supply chains with OEMs for commercial and defense aircraft,” Lizcano said.
The U.S.-based Aerospace Industries Association had a similar argument:
“Maintaining the free flow of goods and services between the United States, Canada, and Mexico is vital to our nation's economy and to our industry," AIA President and CEO Eric Fanning said in a statement. He hailed the recent United States-Mexico-Canada Agreement as aid to that goal.
“However, this certainty is currently threatened by disruptions in America's common aerospace and defense supply chain affecting companies of all shapes and sizes. To restore certainty and keep goods and services moving, all levels of government within the U.S., Canada, and Mexico must work together to provide clear, coordinated, and direct guidance about how best to protect our workers, while ensuring aerospace and defense is declared an ‘essential' function in all three countries.
"A unified North American approach helps ensure critical operations will continue under some of the strictest health and safety standards in the world and offer much-needed stability during this crisis.”
On Monday, the CEO of the National Defense Industrial Association, retired Gen. Herbert “Hawk” Carlisle, said the increasingly global nature of some American defense supply chains cannot and should not be reversed. The U.S. ought to keep its suppliers diversified, he said, to avoid choke points overseas.
“What you don't want are single points of failure where if something happened in that country, it couldn't produce,” Carlisle said. “You have [to have] multiple, avenues to supply that capability. Some may be internal, and you can have more than one nation external.”
April 15, 2021 | International, Land
Oshkosh Defense and BAE Systems were chosen to deliver prototypes of the U.S. Army's next Cold Weather All-Terrain Vehicle, the companies announced on Wednesday.
August 7, 2018 | International, Land
By: Todd South As Marine units face evolving drone threats from terrorist organizations and at the same time shore up their air defenses against near-peer air attacks, a few key pieces of gear in the most recent defense bill could vastly strengthen overhead protection. Until recently, Marines tasked with taking down drones or short-range missiles had to link into a vast array of detection devices and then perform a practically 20th century task to take them out. Essentially, a Marine with binoculars scans the air for drones while another Marine zeroes in with a Stinger missile ― first fielded in the 1980s but upgraded since ― to shoot down what is often a few hundred dollars' worth of a patched together, weaponized or surveillance-type commercial drone. But a review of the past five years of Marine Corps budget requests and approvals for two systems, the Ground Based Air Defense-Transformation, or GBAD, and the Ground/Air Task-Oriented Radar, or G/ATOR, have more than doubled in the past five years and are projected to maintain or increase from now until 2022, when a GBAD with a laser component is expected to field. Beginning as far back as 2013, the Marines have been purchasing the G/ATOR, an advanced radar system that executes the function of a combined five legacy systems. Full Article: https://www.marinecorpstimes.com/news/your-marine-corps/2018/08/06/marines-increase-ways-to-detect-and-kill-air-threats-from-hobby-drones-to-cruise-missiles/
August 7, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
NAVY Lockheed Martin Rotary and Mission Systems, Moorestown, New Jersey, was awarded a $65,283,976 fixed-price-incentive and firm-fixed-price contract for fiscal 2020 Aegis modernization, new construction of guided missile destroyers and Foreign Military Sales (FMS) production requirements. This contract combines purchases for the Navy (96.9%); the Kingdom of Spain (2.3%); and the government of Japan (0.8%), under the FMS program. Work will be performed in Moorestown, New Jersey (70%); Clearwater, Florida (29%); and Owego, New York (1%). This procurement covers the production and delivery of multi-mission signal processor equipment sets; Aegis Combat System support equipment; and electronic equipment fluid coolers and kill assessment system 5.1 equipment. This contract action also provides MK 6 Mod 0 equipment for the government of Japan and the Kingdom of Spain FMS requirements. Work is expected to be completed by November 2024. Fiscal 2014, 2017, 2018, 2019, and 2020 shipbuilding and conversion (Navy); fiscal 2020 other procurement (Navy); fiscal 2020 defense-wide procurement; and FMS case funding in the amount of $65,283,976 will be obligated at the time of award and will not expire at the end of the current fiscal year. In accordance with 10 U.S. Code 2304(c)(1) and (c)(4), this contract was not competitively procured (only one responsible source and no other supplies or services will satisfy agency requirements). The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Awarded July 31, 2020) Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $20,630,000 not-to-exceed, cost-plus-fixed-fee, undefinitized order (N00019-20-F-0078) against previously issued basic ordering agreement N00019-19-G-0008. This order procures various materials required for the 30P05 capability upgrade to all fielded pilot and maintenance training systems in support of the F-35 Program for the Navy, Marines, Air Force, non-Department of Defense (DOD) participants and Foreign Military Sales (FMS) customers. Work will be performed in Orlando, Florida (95%); and Fort Worth, Texas (5%), and is expected to be completed by December 2021. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $7,620,000; non-DOD participant funds in the amount of $1,310,000; and FMS funds in the amount of $1,385,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. ARMY Korte Construction Co., St. Louis, Missouri, was awarded a $34,420,210 firm-fixed-price contract to design and construct a two-story 72,140 square-foot Joint Simulation Environment facility at Edwards Air Force Base. Bids were solicited via the internet with three received. Work will be performed at Edwards AFB, California, with an estimated completion date of Aug. 31, 2022. Fiscal 2020 military construction (defense-wide) funds in the amount of $34,420,210 were obligated at the time of the award. U.S. Army Corps of Engineers, Los Angeles, California, is the contracting activity (W912PL-20-C-0030). Iron Mountain Solutions Inc.,* Huntsville, Alabama, was awarded a $15,541,629 modification (000148) to contract W31P4Q-17-A-0001 for technical support for the Utility Helicopter Project Office. Work will be performed in Huntsville, Alabama, with an estimated completion date of Feb. 8, 2021. Fiscal 2020 aircraft procurement (Army); operations and maintenance (Army); research, development, test and evaluation (Army); other procurement (Army); and Foreign Military Sales (United Arab Emirates) funds in the amount of $15,541,629 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. AIR FORCE Rockwell Collins Inc., Collins Aerospace, Cedar Rapids, Iowa, has been awarded a $14,000,000 firm-fixed-price modification (P00007) to contract FA8102-16-D-0005 for services and supplies in support of modernization, expansion and depot-level contractor logistic support. The contractor will provide support for Scope Command's High Frequency Global Communications System in support of Air Force, Navy and Coast Guard requirements. Work will be performed in Richardson, Texas, and is expected to be completed Aug. 30, 2021. This option exercise is the result of a sole-source acquisition. The estimated cumulative contract value is $70,000,000. No funds are being obligated at the time of the award. The Air Force Life Cycle Management Center, Tinker Air Force Base, Oklahoma, is the contracting activity. Ball Aerospace & Technologies Corp., Boulder, Colorado, has been awarded a $9,682,027 contract for the Defense Experimentation Using Commercial Space Internet (DEUCSI) Call 002 Vendor Flexibility effort. This contract seeks to establish the ability to communicate with Air Force platforms via multiple commercial space internet constellations using common user terminal hardware elements. Work will be performed in Westminster, Colorado, and is expected to be completed April 17, 2022. This award is the result of a competitive acquisition under the DEUCSI Advanced Research Announcement Call 002. Fiscal 2020 research, development, test and evaluation funds in the amount of $4,536,000 are being obligated at the time of award. Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-20-C-9320). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2303639/source/GovDelivery/