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May 20, 2022 | International, Aerospace, Naval, Land, C4ISR, Security

La Commission européenne propose une exonération de TVA sur les investissements groupés dans le domaine de la Défense

DÉFENSE 

La Commission européenne propose une exonération de TVA sur les investissements groupés dans le domaine de la Défense 

En 2021, les Etats européens consacraient 220 Md€ à leur Défense et promettent encore d’en augmenter les investissements. La Commission a remis en garde mercredi 18 mai contre des investissements sans coordination européenne, qui pourraient aboutir à un immense gaspillage. Quand tous les Etats respecteront la règle de l’OTAN des 2% du PIB investis dans la Défense, 67 Md€ supplémentaires seront investis chaque année par les Etats européens. Josep Borrell, le haut représentant aux affaires étrangères et à la sécurité, a souligné hier « Si les 27 augmentaient de façon homothétique leurs dépenses sur une base nationale, on aboutirait à un énorme gaspillage d'argent, sans aucun gain de sécurité, puisqu'on aurait toujours une structure militaire déformée comme aujourd'hui ». Le gaspillage serait d'autant plus grand que les membres de l'Union achètent à plus de 60% leur matériel militaire à l'étranger. « Le plus important, c'est comment investir », a déclaré la présidente de la Commission européenne, Ursula von der Leyen. La Commission propose une task force et un premier fonds d'urgence de 500 M€ pour inciter les Etats membres à de l'acquisition conjointe. Et cet automne, pour inciter les Etats membres à coordonner leurs investissements, elle proposera aux chefs d'Etat « une exonération totale de TVA pour les achats groupés de matériel militaire européen » a annoncé Ursula von der Leyen. Ces propositions avaient été demandées par les chefs d’Etat européens lors du sommet de Versailles de mars. Elles seront discutées fin mai, lors du Conseil européen. 

Le Figaro et Les Echos du 19 mai 


 

On the same subject

  • Why defense firms need to get systematic about M&A — big and small

    November 17, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Why defense firms need to get systematic about M&A — big and small

    By: Eric Chewning and Frank Coleman III  After years of growth, defense budgets will likely flatten (or decline). In such a financial environment, the U.S. Department of Defense will consider trade-offs between funding modernization, sustaining legacy equipment and preserving force structure. These hard choices will be informed by the DoD’s strategic acquisition priorities, which will likely continue to reflect the need for innovation around leading-edge capabilities in areas like space, C5ISR, long-range precision fires, unmanned vehicles and artificial intelligence. To support these evolving mission requirements, the defense industry will need to ensure the industrial base is able to deliver technological advantage. This requires attracting world-class talent as well as the necessary financial capital to operate global industrial enterprises. Attracting these resources requires continued value creation through growth and return on invested capital improvements. But in a down budget environment, where is this growth to come from? While many will think organic growth is the best value-creating option (and often is), the answer also lies in augmenting a classic portfolio strategy with a systematic approach to transactions. Mergers and acquisitions are a proven growth accelerant for defense companies, and have generated superior shareholder returns and greater resilience for companies that have pursued it systematically. At first glance, this may simply seem like an obvious description of recent history. The aerospace and defense sector, after all, has seen rapid consolidation in the last five years, with deals worth $358 billion struck between 2015 and 2019, three times the total between 2010 and 2014. The problem for defense companies looking for more of the same is that this wave of consolidation now appears to have run its course. The combined market value of the top five defense hardware players is now more than four times that of the next five; so even as further mega-deals are theoretically possible, they will be increasingly difficult to execute, underscoring the value of programmatic M&A. Distinct from selective or organic deal-making approaches, programmatic M&A involves a company conducting two or more small or midsized deals per year, with an aggregate value greater than 15 percent of its market capitalization over five years, that align with their overall corporate strategy (which is hopefully linked to the “fast streams” of growth in the budget (see exhibit below)). These deals get choreographed around a specific business case, such as scaling or integrating vital digital capabilities, and are rooted in a disciplined appraisal of transactions. In the defense industry, programmatic M&A should be deployed against a strategy supported by the customer’s need for innovation, lower costs and better mission outcomes for the war fighter. Our analysis shows that over the last decade, few defense companies took a programmatic approach to M&A. Those who did outperformed their peers in total shareholder returns by 10.4 percent. M&A was also an important key to resilience during the last defense spending downturn in 2007-2011: The top quintile of outperforming companies, as well as optimizing cash and flexing capex, used it as an opportunity to grow less cyclical parts of the business and build digital capabilities. Defense companies may be deterred by the current market environment, featuring stretched valuations, competition from institutional capital and a squeeze on mid-tier players. They may be cautious about the challenge of integrating smaller nondefense acquisitions into company processes and culture — a process that is easier to get wrong than right to be sure. The very complexity of these circumstances creates opportunities for bold players to differentiate themselves from their peers, align their strategies with national defense priorities and add significant value for shareholders. When done well, programmatic M&A can form a central pillar of their growth strategy. With a proactive approach to deal sourcing, holistic diligence, and in-house execution and integration expertise, companies can establish M&A as a critical capability and avoid the risks of reactive, one-off projects. In the challenging environment that confronts the defense industry today, those who act boldly will succeed in creating enduring businesses that can adapt to the evolving needs of the national defense. Eric Chewning and Frank Coleman III are partners at McKinsey and Company. Chewning previously served as chief of staff in the Office of the Secretary of Defense, and before that as the Pentagon’s industrial chief. https://www.defensenews.com/opinion/commentary/2020/11/16/why-defense-firms-need-to-get-systematic-about-ma-big-and-small/

  • Contract Awards by US Department of Defense - April 26, 2019

    April 29, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

    Contract Awards by US Department of Defense - April 26, 2019

    DEFENSE LOGISTICS AGENCY Sea Box,* Cinnaminson, New Jersey, (SPRD11-19-D-0100, $471,828,000); W&K Containers,* Mill Valley, California, (SPRDL1-19-D-0101, $19,513,750); and NexGen Composites,* Franklin, Ohio (SPRDL1-19-D-0097, $253,608,919) have each been awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity contract for ISO & Quadcon Containers.  They are five-year contracts with no option periods.  This was a competitive acquisition with four responses received.  Locations of performance are New Jersey, Texas, California, South Carolina and Ohio, with an Oct. 29, 2024, performance completion date.  Using military service is Army.  Type of appropriation is fiscal 2019 through 2024 defense working capital funds.  The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan. Freeman Holdings of Arizona, LLC, doing business as Million Air Yuma,* Yuma, Arizona, has been awarded a minimum $21,991,384 fixed-price with economic-price-adjustment contract for fuel.  This was a competitive acquisition with 148 responses received.  This is a 46-month contract with one six-month option period.  Location of performance is Arizona, with a March 31, 2023, performance completion date.  Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  Type of appropriation is fiscal 2019 through 2023 defense working capital funds.  The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE607-19-D-0076). Rantec Power Systems, Los Osos, California, has been awarded a maximum $8,429,618 firm-fixed-price contract for two different power supplies.  This was a sole source acquisition using justification 10 U.S.C. 2304(c)(1), as stated in Federal Acquisition Regulation 6.302-1.  This is a one-year base contract with one one-year option period for each power supply.  The majority of the option is being exercised at the time of award.  Location of performance is California, with a March 31, 2023, performance completion date.  Using military service is Army.  Type of appropriation is fiscal 2019 defense working capital funds.  The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-19-C-0106). AIR FORCE The Boeing Co., St. Louis, Missouri, has been awarded a $127,632,494 modification (P00003) to previously awarded contract FA2103-18-C-0061 for the B61-12 Life Extension Program.  This modification provides for the initiation of an undefinitized contract action for Lot 1 and Lot 2 Long Lead items.  Work will be performed in Saint Charles, Missouri, and is expected to be complete by Aug. 31, 2020.  His modification brings the total cumulative face value of the contract to $131,932,494.  Fiscal year 2018 and 2019 procurement funds, and fiscal year 2019 research and development funds, in the amount of $29,218,278 are being obligated at the time of award.  Air Force Nuclear Weapons Center, Eglin Air Force Base, Florida is the contracting activity. Raytheon Co., McKinney, Texas, has been awarded a $94,272,118 fixed‐price‐incentive modification (P00004) to previously awarded contract FA8620-18-C-2001 for DAS‐4 production and upgrades.  This modification provides for the purchase of an additional 54 production AN/DAS‐4 Multi‐Spectral Targeting System Model B High Definition/Target Location Accuracy (HD/TLA) turrets and one DAS‐1A to DAS‐4 turret unit upgrade.  Work will be performed in McKinney, Texas, and is expected to be complete by Jan. 31, 2021.  This contract involves foreign military sales to The Netherlands.  Fiscal year 2017 aircraft procurement funds in the amount of $1,480,393, fiscal year 2018 aircraft procurement funds in the amount of $22,338,740, fiscal year 2019 aircraft procurement funds in the amount of $60,142,814, and foreign military sales funds in the amount of $10,310,171 are being obligated at the time of award.  Air Force Life Cycle Management Center, Wright‐Patterson Air Force Base, Ohio, is the contracting activity. University of Dayton Research Institute, Dayton, Ohio, has been awarded a $46,794,000 indefinite-delivery/indefinite-quantity contract for Proactive Research Enabling Supportable Systems (PRESS).  This contract provides for PRESS in order to improve materials and processes for maintainability and manufacturing.  Work will be performed in Dayton, Ohio, and is expected to be complete by May 1, 2026.  This contract was the result of a competitive acquisition and 3 offers were received.  Fiscal year 2019 research, development, test and evaluation funds in the amount of $508,000 are being obligated on the first task order at the time of award.  Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-19-D-5630). NAVY Granite-Healy Tibbitts, JV, Watsonville, California, was awarded $27,186,257 for firm-fixed-price task order N6247319F4540 under a previously awarded multiple award construction contract (N62473-16-D-1803) for construction of maintenance dredging piers 1, 3, and Paleta Creek at Naval Base San Diego. The maintenance dredging will re-establish the design operational and/or berthing depth required for United States Navy vessels and other visiting vessels. The dredge material is expected to be disposed of at upland disposal sites. All dredge material for upland disposal will be screened for unexploded ordnance and radiological debris, dried or dewatered prior to transport for disposal at a commercial landfill.  The proposed maintenance dredging work will remove dredge material to restore the pier slips and creek area for safe, unrestricted navigation. The task order also contains one unexercised option, which if exercised would increase the cumulative task order value to $38,244,577. Work will be performed in San Diego, California, and is expected to be completed by November 2021. Fiscal 2019 operation and maintenance (Navy) contract funds in the amount of $27,186,257 are obligated on this award and will expire at the end of the current fiscal year. Three proposals were received for this task order.  The Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity.  (Awarded April 25, 2019) Lockheed Martin Rotary and Mission Systems, Manassas, Virginia, is awarded a $26,890,125 cost-plus-fixed-fee contract for the procurement of Navy engineering services. This contract includes options which, if exercised, would bring the cumulative value of this contract to $201,706,155. Work will be performed in Manassas, Virginia (68 percent); Waterford, Connecticut (10 percent); Groton, Connecticut (10 percent); Middletown, Rhode Island (7 percent); and Newport, Rhode Island (5 percent), and is expected to be completed by December 2025. Fiscal 2018 and 2019 other procurement (Navy) and fiscal 2019 research development test and evaluation (Navy) funding in the amount of $5,155,627 will be obligated at the time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C. 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements.  The Naval Sea Systems Command, Washington, District of Columbia is the contracting activity (N00024-19-C-6400). Miller Electric Co. Inc. doing business as PEC Contracting and Engineering*, Reno, Nevada, was awarded a maximum amount $25,000,000 indefinite-delivery/indefinite-quantity contract for commercial and institutional building construction alterations, renovations, and repair projects at Naval Air Station Fallon. Projects will be primarily design-bid-build (fully designed) task orders or task order with minimal design effort (e.g. shop drawings). Projects may include, but are not limited to, alterations, repairs, and construction of administration buildings, maintenance/repair facilities, aircraft control towers, hangars, fire stations, office buildings, laboratories, dining facilities and related structures.  Work will be performed in Fallon, Nevada. The term of the contract is not to exceed 60 months with an expected completion date of April 2024. Fiscal 2019 operation and maintenance (Navy) contract funds in the amount of $5,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by operation and maintenance (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website, with 11 proposals received. The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-19-D-2617).  (Awarded April 25, 2019) Centerra-SJC II, LLC. *, Fort Worth, Texas, was awarded a $15,374,563 firm-fixed-price task order modification under a previously awarded indefinite-delivery/indefinite-quantity contract (N69450-15-D-1621) for exercise of options two, three, four, and five for renovations to 84 housing units. The work to be performed provides for complete exterior and interior repairs for 84 housing units at Tierra Kay Housing complex. The renovation of the Tierra Kay housing areas is to provide quality housing for unaccompanied service members, and will improve quality of life during their deployment to Guantanamo Bay. This will optimize energy performance of the housing area. The total task order amount after exercise of these options will be $18,612,025. Work will be performed in Guantanamo Bay, Cuba, and is expected to be completed by April 2020. Fiscal 2019 operations & maintenance, (Army) contract funds in the amount of $15,374,563 are obligated on this award and will expire at the end of the current fiscal year. Four proposals were received for this task order. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity. (Awarded April 25, 2019)  Lockheed Martin, Rotary and Mission Systems, Moorestown, New Jersey, is awarded a $13,908,052 cost-plus-incentive-fee modification to previously awarded contract N00024-16-C-5102 to exercise an option for AEGIS Speed to Capability Development. The contract provides for systems engineering, modeling and simulation, and design for AEGIS Speed to Capability cycles as well as the completion of the development and fielding of the AEGIS Baseline 9 AEGIS Weapon System and integrated AEGIS Combat System on AEGIS Technical Insertion (TI) 12 configured destroyers as well as TI 12 and TI 08 configured cruisers. Work will be performed in Moorestown, New Jersey (97 percent) and Johnstown, Pennsylvania (3 percent) and is expected to be complete by May 2020. Fiscal 2019 research, development, test & evaluation (Navy) funding in the amount of $1,938,130 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Didlake, Inc., Manassas, Virginia, is awarded a $12,076,573 firm-fixed-price, indefinite-delivery/ indefinite-quantity modification for the exercise of option four for annual custodial services at Naval Air Station Oceana, Naval Weapons Station Yorktown, and Norfolk Naval Shipyard. The work to be performed provides for annual custodial services, including, but not limited to, all management, supervision, tools, materials, supplies, labor, and transportation services necessary to perform custodial services for office space, restrooms, and other types of rooms. After award of this option, the total cumulative contract value will be $53,345,575. No task orders are being issued at this time. Work will be performed at various installations in Portsmouth, Virginia (43 percent); Virginia Beach, Virginia (44 percent); and Yorktown, Virginia (13 percent). This option period is from May 2019 to April 2020. No funds will be obligated at time of award. Task orders will be primarily funded by Fiscal 2019 operation and maintenance (Navy) contract funds in the amount of $11,705,043 for recurring work will be obligated on individual task orders issued during the option period. Naval Facilities Engineering Command Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-15-D-0063). Lockheed Martin, Rotary and Mission Systems, Moorestown, New Jersey, is awarded a $9,142,030 cost-plus-incentive-fee modification to previously awarded contract N00024-15-C-5151 for AEGIS Ashore Support and Ship Integration and Engineering of the AEGIS Weapon System (AWS) for AWS Baselines through Advanced Capability Build (ACB) 16. The contract modification provides for AEGIS ashore on-site support in Romania and Poland, AEGIS Ashore Planning Yard support and Ship Integration Engineering support including technical data package and test package/procedure development; technical documentation; feasibility studies; configuration management support; lifecycle and system engineering;  environmental qualification testing; topside analysis; Ballistic Missile Defense engineering; combat system alignment and integration of Advanced Naval Weapon Systems on DDG 51 Class ships. Work will be performed in Camden, New Jersey (29 percent), Deveselu, Romania (15 percent), Redzikowo, Poland (15 percent), Moorestown, New Jersey (13 percent), Norfolk, Virginia (9 percent), San Diego, California (9 percent), Pearl Harbor, Hawaii (5 percent), and various places below one percent (5 percent) and is expected to be complete by September 2019. Fiscal 2019 operations and maintenance (Navy) funding in the amount of $3,268,951 will be obligated at the time of award and will expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY The Johns Hopkins University Applied Physics Laboratory LLC, a not-for-profit University Affiliated Research Center, Laurel, Maryland, has been awarded a ceiling $100,000,000 modification (P00003) to previously awarded indefinite delivery indefinite quantity (IDIQ) contract HR0011-17-D-0001 for engineering, development and research capabilities. The modification brings the total cumulative face value of the contract to $198,000,000 from $98,000,000. Work will primarily be performed in Laurel, Maryland, with an expected completion date of November 2021. IDIQ task orders can extend an additional six months until May 2022. No funds are being obligated at time of award. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1825952/source/GovDelivery/

  • UK orders first three Protector drones from General Atomics

    July 16, 2020 | International, Aerospace

    UK orders first three Protector drones from General Atomics

    By: Andrew Chuter LONDON – Britain's Ministry of Defence has signed a deal with General Atomics for the first three Protector remotely piloted air vehicles destined to equip the Royal Air Force with a replacement for its Reaper drone force. A £65 million (U.S. $80 million) contract for three Protectors, the British version of the MQ-9B SkyGuardian was announced by Defence Secretary Ben Wallace during a virtual air power conference held by the RAF July 15. Protector will fly further, hit harder and, crucially, be able to fly in unsegregated civilian airspace compared with the Reaper vehicles widely used by the British in Afghanistan and the Middle East over the last several years. Three ground stations and other associated support equipment are also included in an initial deal that will see the first vehicle delivered to the British next year. The initial vehicle will remain in the United States for test and evaluation until 2023, ahead of deploying to its UK base at RAF Waddington, eastern England. Able to fly for up to 40 hours Protector is expected to enter service in 2024. The aircraft will be armed with MBDA’s Brimstone missile and Raytheon UK’s Paveway IV precision-guided bomb, enhanced data links and detect-and-avoid technology. The deal for Protector production includes an option on a further purchase of 13 drones. A contract firming up the options is planned for April next year. An MoD spokesperson denied that breaking up the order into two parts was related to balancing the over-stretched budget for this year. The cost of purchasing the remaining drones is put at around £180 million, or $230 million. The MoD spokesperson said consideration is also being given to an additional acquisition of drones over and above the 16 vehicles already envisaged. A total force of more than 20 Protectors was envisaged in the Conservative government's 2015 strategic defence and security review. Now, the final numbers will likely be subject to the outcome of an integrated defense, foreign policy and security review now underway by the Conservatives. Many people here think the already cash-strapped MoD will be a post-Covid-19 target for capability cuts as the government shifts its emphasis on defense equipment spending away from more conventional technologies into areas like space, cyber and artificial intelligence. Protector has already been a victim of MoD financial pressures. Sir Simon Bollom, the CEO of the Defence Equipment and Support arm of the MoD, alluded to the difficulties saying in an MoD statement his organization had "overcome considerable challenges" to keep the program on track. The vehicle was originally slated to enter service with the RAF in 2018 but that was then put back until 2021 before the new date was agreed. In announcing the deal defence secretary Ben Wallace said, „Protector will provide the RAF with vast global reach, meeting the UK’s defense and security needs for decades to come, and provide another increase to the unmanned inventory for the armed forces.“ https://www.defensenews.com/global/europe/2020/07/15/uk-orders-first-three-protector-drones-from-general-atomics/

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