April 8, 2024 | International, Land
Australian companies increasingly look to US following AUKUS pact
With the AUKUS pact, Australian companies are establishing larger footprints within the defense industrial base stateside, but hurdles remain.
October 2, 2018 | International, Aerospace, Naval, Land, C4ISR, Security
Facing industry pressure, Pentagon backs off contract payment changes
By: Aaron Mehta and Joe Gould
WASHINGTON – Following a wave of criticism from the defense industry and members of Congress, the Pentagon on Monday backed off proposed changes to how companies receive cash flow on their contracts.
In a statement released at the unusual time of 7:19 PM, Deputy Secretary of Defense Patrick Shanahan said the decision to withdraw the proposed acquisition changes stemmed from a lack of “coordination” inside the department.
“Recently, proposed amendments to the Defense Federal Acquisition Regulation Supplement (DFARS) were prematurely released, absent full coordination,” Shanahan's statement read. “As a result, the Department will rescind the proposed amendments. In coordination with industry, the Department will create a revised rule to implement section 831 of the FY2017 NDAA.”
"The department will continue to partner closely with Congress and industry to examine all reform opportunities, ensuring we provide the best value to taxpayers and critical capabilities to military personnel who defend this great Nation,” Shanahan said.
Unsaid in the statement: that since word of the proposed changes got out, the defense industry has been loud and unanimous in its opposition, and has enlisted its supporters on the Hill to help fight against the plan, put forth by Undersecretary of Defense for Acquisition and Sustainment Ellen Lord.
As part of a broader set of changes to the acquisition rules, Lord hoped to change how companies receive their cash flow based on performance measurements, to act as an incentive for good behavior.
In a Sept. 5 interview with Defense News, she laid out the rationale, saying “I believe the lifeblood of most industry is cash flow, so what we will do is regulate the percentage of payments or the amount of profit that can be achieved through what type of performance they demonstrate by the numbers.”
However, three major trade groups — The National Defense Industrial Association, Professional Services Council and the Aerospace Industries Association — objected to the proposal, which would slash the payments on work to be performed from 80 percent to 50 percent, with incremental increases for maintaining quality or on-time delivery — and decreases for companies that have committed fraud.
Rep. Mac Thornberry, R-Texas, and Sen. Jim Inhofe, R-Okla., the chairs of the House and Senate Armed Services Committees, sent a Sept. 21 letter to Shanahan calling the proposal “fundamentally flawed" and asking that it be rescinded and revisited.
“We should not make it harder to do business with the Department of Defense than it is to do business with other parts of government — and that's exactly what this regulation does,” Thornberry told reporters last Tuesday. “We try to streamline acquisition, we try to make it easier to do business with these small companies; and then something like this comes out.”
The Pentagon had hoped to implement the rule changes by the end of the year and had planned to hold a public meeting on Oct. 10, before the public comment period ended on Oct. 23. Whether that event will still happen is unclear.
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April 3, 2020 | International, Aerospace
Air Force small business program seeks technologies to help counter COVID-19
by Sandra Erwin In response to the SBIR solicitation, a space startup is developing a geospatial intelligence-based tool that can help governments identify infected areas. WASHINGTON — The U.S. Air Force Small Business Innovation Research office has posted a new solicitation that includes COVID-19 countermeasures as an area of interest. The March 30 Small Business Innovation Research solicitation, like most SBIR calls, is open to proposals on any topic that addresses a defense-focused need. But this is the first one that includes COVID-19 “defeat and mitigation related to Air Force operations and activities” as an area of interest. Proposals are due April 30. This SBIR is for “direct to Phase 2” contracts of up to $1 million over 27 months. Phase 1 awards are for early research work whereas Phase 2 are for technologies that are relevant to defense needs but also have commercialization potential. Some Air Force SBIR programs require matching funds from private investors. According to the March 30 solicitation, companies can compete for $1 million Air Force awards but private matching funds are not a requirement. The SBIR solicitation is an opportunity for startups in space and defense to adapt technologies for COVID-19 response, Shawn Usman, an astrophysicist with Rhea Space Activity, told SpaceNews. Usman said Rhea Space Activity has partnered with Illumina Consulting Group and Dynamic Graphics to offer a geospatial intelligence-based tool that can help governments identify infected areas much faster than is currently possible. “We can provide operational, real-time data analysis and alerting capabilities to federal, state, and military emergency operations centers,” he said. “Our solution will collect publicly available information, including social media and adware data, and correlate it with other data sets from public health organizations to create alerts detailing the emergence of COVID-19 hotspots.” Using open-source analytics and satellite collected geospatial information it would be possible to “readily confirm COVID-19 infected population areas, and will provide first responders with much more detailed, real time information to formulate their own reaction plans,” Usman said. https://spacenews.com/air-force-small-business-program-seeks-technologies-to-help-counter-covid-19/
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October 15, 2023 | International, Naval
Dutch navy starts retiring submarines, but successor still unknown
The lead vessel of the Walrus class was decommissioned after 31 years of service and will be used for parts.