April 6, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Daily Memo: Emergency Funding For Suppliers, Aftermarket Providers

Sean Broderick

The Coronavirus Aid, Relief, and Economic Security (CARES) Act sets up several new programs and adjusts some existing ones—each aimed at pumping much-needed cash into specific sized organizations or industry sectors.

Large portions of the U.S. commercial aviation industry got specific carve-outs in the $2 trillion economic relief package enacted March 27. While these loans and grants will help air carriers and other key industry players offset some financial strife caused by the COVID-19 outbreak, most suppliers will be looking elsewhere for money.

Thankfully, CARES gives even the smallest companies options.

Topping the list is the Paycheck Protection Program (PPP), a $349 billion pot of money designed to enable the U.S. Small Business Administration (SBA) to provide “expeditious” relief to eligible businesses, an interim final rule published late April 2 said. PPP provides SBA-guaranteed loans equal to up to 2.5 times monthly payroll costs, with a $10 million cap, that businesses can use to keep the lights on for two months. Eligible expenses include payroll, health care benefits, rent and utility payments, as well as some interest expenses. The loans come with a 1% interest rate, maximum two-year terms, and require no collateral or personal guarantees. But they will be forgiven if 75% or more of the funds are used to cover payroll.

Among the PPP's wrinkles: only the first $100,000 in an employee's salary can be counted when calculating payroll expenses. Contractors are eligible to apply for their own relief, so their costs can't be counted at all. Also ineligible for counting in the payroll expenses: salaries of employees that live outside the U.S.

Businesses can only apply for one PPP loan, so the SBA advises applying for the maximum eligible amount.

Determining eligibility is straightforward: a business must find its North American Industry Classification System (NAICS) code, check the maximum employee size for its business category, and compare it to its staff size. While the general small-business benchmark is 500 or fewer employees, aerospace has many exceptions. The threshold for aircraft engine and engine parts manufacturing/maintenance (NAICS code 336412) is 1,500 employees. For aeronautical instruments manufacturing (334511), it's 1,250. If your business falls into multiple codes, the one that generates the most work determines your NAICS code. SBA has an online tool that walks through the process at www.sba.gov/size-standards.

The PPP application window opened on April 3. The program's sheer size—SBA's cornerstone 7(a) loan program issued about $20 billion in loans in all of 2019—and its first-come, first-served basis triggered a massive, front-loaded surge of applications. The interim final rule contained key guidance that banks needed to service the program, which meant not all lenders were ready to start processing applications right away. But the situation was improving hourly throughout the day April 3 as more lenders came onboard.

Another SBA program that CARES leans on is the Economic Injury Disaster Loan (EIDL). Capped at $2 million with a 3.75% interest rate, EIDLs can be used for a wider variety of expenses than the PPP. Unlike the PPP, however, they are not eligible for forgiveness.

CARES also gives the U.S. Treasury Department the authority to make special loan allowances for medium-sized businesses, generally those that are too large for an SBA program and have up to 10,000 employees. Among the caveats: maintaining or restoring 90% of its equivalent workforce as of Feb. 1, 2020 within four months of the official U.S. declaration that the COVID-19 public health emergency is over. Further guidance from Treasury, including basics such as how to apply, are in the works.

Some suppliers are eligible to apply for shares of the aviation-specific funds set aside in CARES. FAA-certificated repair stations are mentioned as being eligible for some of the $29 billion in CARES loans, specifically from the $25 billion pot allocated for passenger airlines. But the law says they should exhaust other available CARES funding options first.

There is another pot of $17 billion in loans set aside for companies critical to national security. Neither the law nor Treasury defines the term, however, so eligibility remains unclear. If Treasury looks to the U.S. Department of Homeland Security's Critical Infrastructure guidance, aircraft and engine supply-chains would qualify, as would repair stations.

Payroll grants for suppliers are murkier. CARES language has a $3 billion set-aside for contractors that both work for airlines and are on-airport. Many maintenance providers would seem to fit here, though Treasury will have the final say.

Industry trade associations and legal experts working the issue are learning more by the hour. Their one common piece of advice for businesses: consult with an attorney or tax expert, determine what your business qualifies for, and weigh your options. Many businesses will qualify for multiple programs that cannot be mixed, creating an either/or choice that comes down to the various strings attached to each.

https://aviationweek.com/air-transport/aircraft-propulsion/daily-memo-emergency-funding-suppliers-aftermarket-providers

On the same subject

October 26, 2018 | International, C4ISR

DoD seeks industry input on multibillion-dollar cloud collaboration solution
By: Jessie Bur The Pentagon and General Services Administration released a request for information Oct. 25 for a new unified collaborative cloud solution that will unite the entire defense apparatus under one enterprise contract. The Defense Enterprise Office Solution is the first capability set of three that the Department of Defense plans to use to capture its enterprise collaboration and productivity needs. The DEOS capability set needs include a productivity suite, messaging capabilities, content management systems and collaboration tools. “We operate pretty much in a disparate environment right now, and predominantly on-[premises] for these capabilities. So DEOS will give us an opportunity to tear down some of those barriers, posture us for increased interoperability while taking advantage of what the commercial community has to offer,” said Essye Miller, principal deputy to the DoD chief information officer, at a press roundtable. “From a benefit perspective, for us: real-time upgrades, real-time refresh, real-time access to innovation as our industry partners make them available to us.” The contract will be offered through GSA's IT Schedule 70, which Miller said has matured to the level that was needed to support Non-Classified Internet Protocol Router, Secret Internet Protocol Router and tactical environment needs. “In fact, IT Schedule 70 is the vehicle GSA itself used to procure its own cloud-based email, collaboration and productivity solution,” said GSA Administrator Emily Murphy, adding that GSA is committed to working with vendors who would want to propose through the expedited Schedule 70 FASt Lane program. “Using IT Schedule 70 to help DoD procure an enterprisewide solution for email, productivity and collaboration tools could establish a baseline for GSA to scale up this type of solution across the federal government in the future.” In fact, according to Federal CIO Suzette Kent, the DoD solution moves the federal government forward on initiatives to use and procure scalable cloud solutions across agencies. “When we look at where we were with the report to the president across the federal government, and the intent to leverage as many common solutions for purposes of interoperability, cybersecurity ... and the overall efficiency of how we go after those solutions and the ability to keep those current, this is a really positive collaboration, and something that we're incredibly supportive of,” said Kent. Industry has just over two weeks to respond to the RFI, which closes Nov. 9, and the subsequent request for quotes will likely be released in early 2019, according to officials. The DoD and General Services Administration also plan to hold industry days in early December 2018 to facilitate communication between government and industry on the best way to approach the contract. The award for the eventual contract is planned for sometime in the third quarter of 2019, and would likely be set for approximately 10 years and $8 billion, according to Murphy, though that number could change depending on industry input. The appropriate solution would likely have to be certified at FedRAMP Moderate, said Miller. According to Murphy, GSA and DoD have yet to determine whether a single-award or multi-award contract will best suit the DoD's needs — a debate that proved highly contentious for the Joint Enterprise Defense Infrastructure cloud contract that opened for proposals July 26 — and the RFI asks respondents to provide pros and cons for each option. But DoD CIO Dana Deasy said that the DEOS program is part of a Pentagon initiative to bring defense operations into a multi-cloud and multi-vendor environment. “Our intentions are to have a cloud that can serve general purpose computing needs, as well as what I have coined a term as ‘fit-for-purpose' clouds, which could consist of internal clouds or commercial clouds that have a unique fit for purpose,” said Deasy, adding that DEOS would be one such cloud. Because DEOS is one of three collaboration capability sets the agency is looking to fulfill, DoD could end up offering a total of three contracts in that space, according to Miller. https://www.federaltimes.com/acquisition/2018/10/25/dod-seeks-industry-input-on-multibillion-dollar-cloud-collaboration-solution
February 1, 2021 | International, Aerospace

La France commande 12 Rafale à Dassault Aviation pour remplacer ceux cédés à la Grèce
Dassault Aviation a signé, le 29 janvier, avec Florence Parly, ministre des Armées, un contrat pour la vente de 12 Rafale, lesquels remplaceront les 12 Rafale de l'armée de l'Air et de l'Espace française vendus à l'armée de l'Air grecque. La signature a eu lieu lors d'une visite de la ministre des Armées à l'usine d'Argonay, en Haute-Savoie, où sont produits les systèmes de commandes de vol de tous les avions Dassault depuis 1963. « Ce contrat de 12 avions neufs permet à notre armée de l'Air et de l'Espace de poursuivre sa montée en puissance Rafale en attendant la cinquième tranche, dont les livraisons sont prévues entre 2027 et 2030, a déclaré le PDG de Dassault Aviation et président du GIFAS, Eric Trappier. C'est une grande satisfaction pour Dassault Aviation, Thales, Safran et les 500 entreprises françaises associées au programme, dans le contexte particulièrement difficile que traverse notre secteur aéronautique avec la crise de la Covid-19 ». Ensemble de la presse du 29 janvier 2021
November 8, 2019 | International, Aerospace

Northrop Grumman to Support the Australian Defence Force’s Joint Data Network
CANBERRA, Australia – November 6, 2019 – Northrop Grumman Corporation (NYSE: NOC) has been awarded a contract by the Australian Defence Force Tactical Data Link Authority (ADFTA) to deliver tactical data link (TDL) systems and training as part of the development of the Australian Defence Force's (ADF) Joint Data Network. ADFTA ensures TDL-functionality to achieve single, joint and combined TDL interoperability for the ADF. “Northrop Grumman has extensive experience in networking and tactical data links across multi-domain forces, and a robust capability roadmap that will deliver increasingly enhanced data link technology in the years ahead,” said Chris Deeble, chief executive, Northrop Grumman Australia. “The Northrop Grumman engineers that delivered the F-35 Multifunction Advanced Data Link and communications, navigation and identification technologies will now be developing the ADF's future TDL technology.” The technology at the core of Northrop Grumman's advanced multi-TDL system provides vital connectivity between legacy 4th generation platforms and advanced 5th generation platforms, as well as future data links and networks. This is critical as forces seek to maximize the long term value of existing platforms and systems by making certain that they can interoperate with emergent 5th generation capabilities. As a leading global systems integrator and data link provider, Northrop Grumman's experience includes the software and hardware of individual communication systems; and the architectures, implementation and scalability of TDL systems and services. Awarded earlier this year, the three-year contract advances the long-term relationship between Northrop Grumman and ADFTA. Northrop Grumman is a leading global security company providing innovative systems, products and solutions in autonomous systems, cyber, C4ISR, space, strike, and logistics and modernization to customers worldwide. Please visit news.northropgrumman.com and follow us on Twitter, @NGCNews, for more information. View source version on Northrop Grumman Corporation: https://news.northropgrumman.com/news/releases/northrop-grumman-to-support-the-australian-defence-forces-joint-data-network

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