September 18, 2020 | Information, Aerospace, Naval, Land, C4ISR, Security, Other Defence
WASHINGTON ― As Congress readies a stopgap spending measure this week, the defense industry is girding for a long-term funding patch that could delay both new procurement programs and needed fiscal certainty into next year.
Democrats say they are considering whether to offer a continuing resolution that would stretch 2020 funding levels into next February or March, or whether to go along with a stopgap through mid December, as Senate Majority Leader Mitch McConnell, R-Ky., is seeking.
Trade groups said this week that passing a CR by the Sept. 30 deadline is better than a government shutdown, but they warned that because CR's ban most new start programs, that will add more turbulence for firms already suffering from pandemic-related economic shocks.
“As threats continue to multiply and the COVID-19 crisis continues, sustained and stable funding in national security takes on new meaning for the U.S. military and the defense industrial base that supports it,” Aerospace Industries Association President and CEO Eric Fanning, said in an email to Defense News. AIA represents roughly 340 manufacturers.
“Relying on continuing resolutions, for any length of time, removes that stability, undermining the shared supply chain and endangering the solid progress made in readiness and modernization over the last several years.”
Defense advocates say continuing resolutions of any length are inefficient for government and disruptive to the budget certainty that businesses need in order to make decisions, but the pandemic and sagging economy add new wrinkles.
Smaller defense firms, many hit by cash flow problems related to the pandemic, were of particular concern to shipbuilder Huntington Ingalls Industries, which was among large firms that accelerated millions of dollars in payments to help small suppliers over recent months.
“The effects of a long term continuing resolution can be harmful to the defense industrial base by delaying or prohibiting work,” HII spokesperson Beci Brenton said in an email. “Our greatest concern with a long term CR is the impact to our thousands of suppliers located in all 50 states who are already impacted by the COVID pandemic.”
Despite a longstanding deal on the budget top lines, only the House has passed full-year appropriations bills, which means Congress will need more time to pass an FY21 appropriations package.
Congress would likely need to draft a CR this week and pass it next week to avert a government shutdown. That's just what House Majority Leader Steny Hoyer, D-Md., told reporters this week that House leaders are planning.
Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi, D-Calif., say they have agreed to a “clean” CR, free of policy riders. It's not expected to include COVID relief funds, but further details have not been announced.
Beyond timing, the defense industry is also watching which anomalies Congress includes to permit select new start programs. The White House sent Congress a list that included the Columbia-class submarine and new W93 submarine-launched nuclear warhead, as well as funds to ramp up the new Space Force ― along with select federal programs across multiple agencies.
The National Defense Industrial Association's senior vice president, Wesley Hallman, said delaying new starts means delaying new revenue streams for companies and, for some, new hiring decisions.
“How many new starts are planned for 1 October, I can't tell you, but if we go to March or February there are more new starts over that entire period,” Hallman said. “If it's bad in October, it's really bad if it's going into March.”
Professional Services Council president and CEO David Berteau, whose group represents services contractors across government, said his member are worried about long delays for a budget deal.
“Our members are always concerned because it slows down new contract awards, and it adds uncertainty to every program manager ― not only in the Defense Department, but across the federal government ― because they don't know how much money they're going to get or when they're going to get it,” Berteau said.
The duration of the CR has special political dimensions this year. If the bill runs through December, President Donald Trump and a Republican-controlled Senate would negotiate over the final spending package. Depending on the outcome of the election, a CR that stretches into the next calendar year could be negotiated by a President Joe Biden or a Democratic-led Senate, which would give Democrats more leverage.
Berteau was concerned that Biden, like Trump in 2017, would not enter office Jan. 20 ready to immediately hammer out a budget deal. It took until that April for Trump to sign a deal, and it took President Bill Clinton ― who entered office under similar circumstances in 1993 ― until that June.
“If you don't get it now, history says you won't get it for six months,” said Berteau, “and that's debilitating for industry.”
“Our members are always concerned because it slows down new contract awards, and it adds uncertainty to every program manager ― not only in the Defense Department, but across the federal government ― because they don't know how much money they're going to get or when they're going to get it,” Berteau said.
The duration of the CR has special political dimensions this year. If the bill runs through December, President Donald Trump and a Republican-controlled Senate would negotiate over the final spending package. Depending on the outcome of the election, a CR that stretches into the next calendar year could be negotiated by a President Joe Biden or a Democratic-led Senate, which would give Democrats more leverage.
Berteau was concerned that Biden, like Trump in 2017, would not enter office Jan. 20 ready to immediately hammer out a budget deal. It took until that April for Trump to sign a deal, and it took President Bill Clinton ― who entered office under similar circumstances in 1993 ― until that June.
“If you don't get it now, history says you won't get it for six months,” said Berteau, “and that's debilitating for industry.”
March 23, 2022 | Information, Other Defence
Canadian government grant and loan programs are common for strategic projects in Canada, helping businesses thrive both domestically and...
December 12, 2017 | Information, Aerospace
Backgrounder From National Defence December 12, 2017 – Ottawa, Ontario – National Defence / Canadian Armed Forces Canada recently announced its decision to purchase Australian F-18 aircraft to supplement the current fleet of fighter aircraft. These aircraft are of similar age and design to Canada's CF-18 fleet and can be integrated quickly with minimal modifications, training and infrastructure changes. In order to integrate these aircraft into Royal Canadian Air Force's (RCAF) operations, the following steps will be taken. Once complete, the aircraft purchased from Australia will integrate seamlessly with the current CF-18 fleet. Life extension and upgrade The Australian F-18 aircraft will be modified and undergo the technical work to be brought to a similar configuration to Canada's CF-18 aircraft, and to ensure that they will be available to supplement the CF-18 fleet until the future fighter fleet is procured. Canada has extensive experience doing this with our current fleet of fighter jets. Modifications and maintenance of the current CF-18 fleet will continue to be required. The Government of Canada has evaluated the required work and associated costs to sustain the current fleet and these additional aircraft. Over the years, both Australia and Canada have made significant investments in the development of structural modifications and capability that have allowed the structural life of our respective F-18s to be extended. More recently however, Canada invested in the development of additional structural modifications that Australia did not. These modifications are currently being applied to Canadian aircraft, and will also be applied to Australian aircraft acquired by Canada thereby allowing a further life extension. These aircraft are currently being employed in operations. Inspections have confirmed that they can be life extended and upgraded to the level of our current fleet. Acquiring spare parts Part of the purchase from the Australian government will include spare parts to help sustain these additional aircraft and the existing CF-18 fleet until the future fighter fleet is operational. Canada also has an existing supply chain for F-18 parts that we will continue to use. Training and personnel Training for the Australian F-18 is identical to that which is required for the present fleet of CF-18s. More aircraft will require more pilots and more technicians to maintain the aircraft. As outlined in Strong, Secure, Engaged, energized retention and recruitment efforts are underway to meet these personnel requirements. Operations Canada's defence policy, Strong, Secure, Engaged, requires the Canadian Armed Forces to fulfil missions at home, in North America, and elsewhere in the world, concurrently. With respect to Canada's fighter capability, the Royal Canadian Air Force must be able to provide a number of mission-ready planes to fully and simultaneously meet Canada's commitments to both NORAD and NATO. Canada does not currently have the aircraft or personnel to fully meet these commitments simultaneously. The supplementation of additional aircraft will provide required capacity to meet our obligation in a seamless way with our current fleet. The first supplemental aircraft are expected to be available for operational employment in the early 2020s, after structural upgrades are completed to match the CF-18 fleet. Infrastructure The aircraft will be employed at 3 Wing Bagotville and 4 Wing Cold Lake. DND is currently reviewing infrastructure requirements to accommodate the additional aircraft. Any modifications are expected to be minimal as the supplemental jets are of similar age and design to the CF-18. Related Products News Release: Canada announces plan to replace fighter jet fleet Backgrounder: Engagement with Industry and Allied Partners Backgrounder: The Procurement Process Defined: Replacing Canada's CF-18 Fleet Backgrounder: Ensuring Economic Benefits for Canada Backgrounder: The Role of Canada's CF-18 Fighter Fleet Associated Links CF-188 Hornet Contacts Media Relations Department of National Defence Phone: 613-996-2353 Email: mlo-blm@forces.gc.ca https://www.canada.ca/en/department-national-defence/news/2017/12/integrating_australianjetsintothecurrentroyalcanadianairforcefig.html
April 25, 2019 | Information, Aerospace, Naval, Land, C4ISR, Security
GUIDE À L'INTENTION DES ENTREPRISES QUI SOUHAITENT FAIRE DES AFFAIRES EN FRANCE https://www.desjardins.com/ressources/pdf/c00-entreprendre-le-marche-francais-f.pdf