June 5, 2024 | International, Aerospace
May 10, 2023 | International, C4ISR
Senop will deliver the equipment and lifecycle upgrades to the Finnish Defence Forces between 2023 and 2025
June 1, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
By: Sebastian Sprenger COLOGNE, Germany — A new budget proposal for the European Union shows that the bloc's defense plans are back on the table as the continent pushes to revive its economy following the coronavirus crisis. Two flagship programs to that end — the European Defence Fund and the Military Mobility initiative — are set to receive €8 billion (U.S. $9 billion) and €1.5 billion (U.S. $1.7 billion), respectively, in the seven-year plan beginning in 2021, according to a proposal unveiled this week by European Commission President Ursula von der Leyen. Those figures are lower than the initial proposal of €13 billion and €6.5 billion for the two budget lines. But they represent an uptick compared with recent negotiation positions that envisioned defense-related spending slashed even more. Defense spending remains an unbeloved subject in many European countries, and it is notable that there is no dedicated political narrative around building military prowess in the context of the bloc's recovery plan, dubbed Next Generation EU during a May 27 speech by von der Leyen. Still, the fact that the European Defence Fund — designed to foster intra-continental defense cooperation — remains in the mix is in itself a statement, according to analysts. Defense-spending advocates in Europe believe a robust military can strengthen the EU's hand in trying to assert its role on the world stage with other players like China and Russia. The new proposal of €8 billion for the European Defence Fund may not seem like much, given the high, upfront costs for multinational military equipment projects, said Sophia Besch, a senior research fellow at the Center for European Reform. “But it's a win for the [European] Commission in the current political context,” she added. “COVID-19 has shifted the priorities, and even before the crisis there were signs that defense was losing ground in the traditional budget battles,” Besch said. Given that, the new proposal is “better than nothing,” she argued. At the same time, the de facto reduction would make it harder to prove for the commission that the intended effects can be achieved with the amount envisioned, Besch predicted. Funding through the European Defence Fund and its associated channels ensures that certain projects in many member states can happen at all, said Yvonni-Stefania Efstathiou, an Athens, Greece-based defense analyst specializing in the emerging European defense-cooperation framework PESCO, or Permanent Structured Cooperation. “Allocations to the EDF have the potential of triggering more defense cooperation, as those funds will be used to finance collaborative research and common capability development projects,” she said. What is still missing, however, is an overarching context of where the EU wants to go with its defense ambitions, she argued. “The impact of these funds will be limited unless there is also progress on the common definition of strategic priorities and military requirements.” The cut to the budget line for military mobility means member states stand to pay more of their own money for updating bridges, roads and rail networks to ensure military equipment can quickly move along the continent in the event of a standoff with Russia. The work is seen as a critical interface between the EU and NATO, and alliance officials previously expressed hope for a funding injection that could speed projects along, especially in Eastern Europe. “Unless we have the full costings of how much bridges and roads will cost, it is hard to evaluate whether the funds are sufficient,” Efstathiou said. “What is easy to predict, however, is the dissatisfaction of the Eastern European states.” https://www.defensenews.com/global/europe/2020/05/29/the-european-unions-defense-ambitions-are-still-showing-signs-of-life/
August 4, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
By Aaron Gregg August 3, 2020 at 8:00 a.m. EDT A military equipment supplier that has been accused of fraudulently misrepresenting its size in order to benefit from privileges associated with being a small business has received a Paycheck Protection Program small business loan worth at least $2 million, public records show. Atlantic Diving Supply, a Virginia Beach, Va.-based reseller of specialized military gear, is the latest organization whose receipt of taxpayer-backed loans through the Paycheck Protection Program has raised questions about a program launched in early April to help sustain employment at small companies through the economic crisis. In late April, the Treasury Department retroactively clarified its rules after well-known restaurant chains, car dealerships and hotel companies reported receiving PPP loans. Several of them returned the loan funds following public uproar; others kept the money. The SBA has said it will audit all PPP loans above $2 million to determine whether the recipients were eligible. Representatives from the Small Business Administration and Atlantic Diving Supply did not comment on the company's receipt of SBA loans. The company's legal issues are detailed extensively in a report released Monday by the nonprofit Project on Government Oversight, known as POGO. A review of business data by POGO and the nonprofit Anti-Corruption Data Collective concluded that ADS was one of at least 27 PPP recipients estimated annual sales of more than $1 billion in 2019. Another 2,068 loan recipients cleared $100 million in sales last year, according to the analysis. Nick Schwellenbach, a senior investigator at POGO, questioned whether it's appropriate for ADS to receive small business coronavirus loans. Schwellenbach's investigation also found that two other firms allegedly tied to ADS ― including one that was named in a settlement with the Department of Justice ― separately received smaller PPP loans. “It's important that taxpayer funding reserved for genuine small businesses isn't siphoned off by companies that are not eligible,” Schwellenbach said. “As a top government contractor with revenues well over a billion dollars a year, it strains credibility that Atlantic Diving Supply is a real small business, especially given several recent settlements and law enforcement outcomes related to their alleged small business contracting fraud." Although it received a favorable ruling from the SBA as recently as November 2019, ADS's small business credentials have long been called into question. ADS started as a small, family-owned shop focused on the military diving community in Virginia Beach, which includes the Navy SEALs. It was transformed under the leadership of long-time chief executive Luke Hillier, winning its first major government contract in 2000. It grew quickly to meet an insatiable demand for military gear of all sorts in the years following 9/11. That fast growth became permanent business as the U.S. military presence in Iraq, Afghanistan and elsewhere dragged on for nearly two decades. At one point, ADS filed papers to go public, something that is usually the purview of large corporations. In 2015 it purchased Theodore Wille International, a military food and equipment supplier with offices in seven countries. Its business has remained healthy despite recent troop reductions. ADS received more than $3 billion in unclassified government contract dollars in 2019, procurement records show. That's more than some well-known, objectively large government contractors, including Bechtel, KBR and CACI. ADS has already cleared $1 billion in federal contract receipts in 2020 despite the economic crisis. As it has grown ADS's continued status as a small business status has been critical to its participation in the Defense Department's Tailored Logistics Support, or TLS program, a lucrative military supply line that is largely restricted to SBA-approved small and disadvantaged businesses. In recent years, ADS's official headcount has teetered close to the SBA's 500-employee limit for small-company designation, and the company has fought off repeated challenges to its size status. If ADS were declared “no longer small,” it would not only be ineligible for SBA coronavirus assistance, but would also be forbidden from competing on small business set-aside contracts that drive its business. In 2017, ADS settled federal allegations that it used a network of allegedly-affiliated companies to rig bids and fraudulently misrepresent its size. The Justice Department called the $16 million settlement “one of the largest recoveries involving alleged fraud in connection with small business contracting eligibility.” Hillier, who has moved on from the CEO role but remained the company's chairman as of July 20, according to a company filing, separately paid $20 million to settle federal allegations that he “violated the False Claims Act by fraudulently obtaining federal set-aside contracts reserved for small businesses that his company was ineligible to receive.” The settlements resulted from a Qui Tam lawsuit brought by whistleblowers. Two of the alleged affiliate businesses — Karda Systems and SEK Solutions — were named in a related case in which Ron Villanueva, a former state lawmaker from Virginia Beach, pleaded guilty to federal charges that he conspired to defraud the United States. Villanueva admitted that he and a friend pretended both companies were run by people who qualified for particular grants and drafted a misleading letter to the SBA that mischaracterized the degree to which one firm relied on other suppliers. ADS briefly lost its small business designation as a result of those allegations when a Defense Department contracting officer, concerned by ADS's settlement, requested a formal SBA review of the company's size status and its degree of affiliation with other companies named in the whistleblower lawsuit, according to documents obtained by The Washington Post. That SBA review determined that ADS was “other than small,” which temporarily blocked the company from bidding on set-aside contracts. But ADS successfully appealed that ruling, which was reversed because it relied on old financial records. Today the company continues to receive federal contracts designated for small firms. Because the settlements arrived at by ADS and Hillier did not include a determination of liability, the company has been allowed to keep benefiting from the SBA's various small business programs. Its most recent size determination, which found it to be a small business, was finalized in November 2019. https://www.washingtonpost.com/business/2020/08/03/defense-contractor-with-billions-sales-got-millions-pandemic-loans-intended-small-businesses