November 8, 2023 | International, Land
British, Polish firms sign $5 billion deal for Poland’s air defense
The contract will lead to the delivery of 1,000 missiles and more than 100 launchers for Poland’s Narew weapon system.
July 23, 2020 | International, Aerospace
Lockheed, Boeing Got Half of $2.3 Billion in Pentagon Virus Cash
Lockheed Martin Corp. and Boeing Co. received about half of an initial $2.3 billion in increased, accelerated payments the Pentagon provided contractors to help companies' cash flows after the Covid-19 pandemic erupted in the U.S.
The initial infusion was included in $13 billion in regular, periodic progress payments paid to the companies, according to newly released defense figures. Lockheed Martin initially received $685 million while Boeing got $670 million, according to a Pentagon statement to Bloomberg News
In a separate statement, Lockheed Martin said that modifications to existing contracts resulted in additional accelerated payments to the company, increasing its total received to $1.1 billion by June 30, “all of which we have flowed down to our supply base.”
Lockheed and Boeing are the top two U.S. defense contractors, so they were expected to get the biggest share of the funds. Other companies receiving the accelerated payments include:
- Raytheon Technologies Corp.: $410 million
- L3 Harris Technologies Inc.: $74 million
- The Boeing/Lockheed United Launch Alliance LLC: $70 million
- Northrop Grumman Corp.: $70 million
Another $321 million went to other companies.
The companies are benefiting from a policy the Pentagon announced in March, just as the pandemic was building in the U.S., that provided for faster, and bigger, payments to companies. The move was intended to guarantee that critical national security contracts -- including the production of key weapons systems and supplies -- weren't interrupted by companies having problems accessing cash or credit. The extra funding would ensure production lines were able to stay open.
The Defense Department's move meant that larger firms could get as much as 90% of their payments for contracts in progress, up from 80% previously. For smaller businesses, which might be more susceptible to virus impacts, the rate rose to 95% from 90%.
As the initial funds were identified, the Pentagon “worked with each of the major primes to ensure that they were identifying at risk companies in their supply chain and flowing down payments to those companies, as well as all companies doing work for the prime,” said the statement.
The major contractors “have been flowing down payments, in some cases more than the payments received from DOD,” it said.
Pentagon officials initially estimated in March about $3 billion would be paid but that number included a potential $700 million payment on a long-standing contract that further analysis deemed was not necessary.
In addition to the accelerated progress payments, the Air Force in April released to Boeing $882 million withheld from the company over current deficiencies with its KC-46 military tanker program as part of Covid-19 relief efforts.
After the program was announced, Senator Elizabeth Warren, who serves on the Armed Services Committee, expressed concern about its oversight. In particular, the Massachusetts Democrat questioned whether companies might try to divert the increased payments for stock buybacks, dividends or executive pay.
Pentagon Undersecretary for Acquisition and Sustainment Ellen Lord in a May 15 letter to Warren said that hasn't been the case.
“Companies do not divert payments for incurred costs to share buybacks, dividends or executive salaries because contractors must have already incurred costs before they receive the increased progress payments,” Lord wrote.
On the same subject
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April 24, 2018 | International, Aerospace, Land, C4ISR
Turkey provides tax breaks, loans to attract investment in local defense programs
By: Burak Ege Bekdil ANKARA, Turkey — In an effort to boost indigenous defense programs, Turkey is providing incentives, which include generous tax breaks, tax reductions and exemptions from import duties. The incentives include additional levies and soft loans. In just the first two months of 2018, the government incorporated 13 defense investment projects submitted by 12 companies into its incentives program. These investments are worth $350 million. The largest investment program benefiting from the incentives during the January/February time frame was Roketsan's new production line. The state-controlled missile maker's investment plan is worth $217 million. Military electronics specialist Aselsan, Turkey's largest defense company, has won incentives support for its new $35 million investment in electronic systems and new $40 million investment in aerial and missile systems. Official figures show a boom in private defense investment, too. According to the Ministry of Economy, $1.9 billion of defense investment by private companies will be subsidized by government incentives this year. These investment plans include a total of $220 million for armored vehicles, a laser gun and unmanned land vehicles; and $125 million in diesel tank engines by armored vehicle producer BMC, a Turkish-Qatari private joint venture. Private firm Most Makina will receive government incentives for its planned $385 million investment in steel equipment for defense systems. Turkish Aerospace Industries, or TAI, will invest $1.2 billion in its TF-X program, an ambitious plan for the design, development and production of Turkey's first indigenous fighter jet. TAI is developing the TF-X with BAE Systems. https://www.defensenews.com/industry/2018/04/16/turkey-provides-tax-breaks-loans-to-attract-investment-in-local-defense-programs/
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September 12, 2019 | International, Aerospace
L'Italie embarque à bord du Tempest
Helen Chachaty A trois, on y va. L'Italie a officiellement rejoint le programme d'aviation de combat du futur, mené par le Royaume-Uni. Un secret de polichinelle qui a pris la forme de la signature de deux accords distincts, le premier impliquant les autorités politiques, le second établissant les bases pour la coopération industrielle à venir entre les deux pays. Les documents ratifiés cette semaine prévoient aussi bien un partenariat renforcé sur les plateformes actuelles, Eurofighter et F-35, qu'un développement conjoint du prochain aéronef de combat, au sein du programme Tempest. La déclaration d'intention signée entre le chef du Defence Equipment & Support (l'équivalent britannique de la DGA), Sir Simon Bollom, et le Lieutenant général Nicolò Falsaperna, vice-secrétaire général à la Défense italien, couvre cinq aspects de coopération : un rapprochement des deux gouvernements sur les capacités futures de l'Eurofighter ; la définition conjointe des besoins militaires concernant le Tempest, le développement d'une feuille de route pour l'aviation de combat, avec le transfert de technologies de l'Eurofighter au Tempest ; la mise en place d'un cadre de coopération industrielle ; le lancement d'études pour de nouvelles voies de « travail collaboratif ». Cette annonce politique a été suivie le lendemain par la signature d'un accord de coopération entre les principaux industriels britanniques et italiens, à l'occasion du salon DSEI, qui se tient jusqu'au 13 septembre à Londres. Il s'agira de « travailler ensemble pour définir un concept innovant et un modèle de partenariat qui inclura le partage de connaissances, la conception et le développement de technologies en vue d'un développement conjoint des systèmes de combat aérien futurs », selon le communiqué officiel. Côté britannique, on retrouve BAE Systems, Leonardo UK, Rolls Royce et MBDA UK, tandis que la partie italienne va impliquer Leonardo - évidemment - Elettronica, Avio Aero et la MBDA Italy. L'Italie devient ainsi le troisième acteur impliqué dans le programme de développement du système de combat aérien du futur lancé et dirigé par le Royaume-Uni, le deuxième au sein du programme Tempest. La Suède s'est pour sa part contentée de signer un accord de coopération pour l'aviation de combat de nouvelle génération lors du salon aéronautique de Farnborough, sans toutefois rejoindre le programme Tempest en lui-même. Selon Jane's, la décision formelle est attendue pour la fin de l'année 2020. Le paysage européen de l'aviation de combat du futur se répartit à présent comme suit : France, Allemagne et Espagne coopèrent sur le SCAF, tandis que le Royaume-Uni, l'Italie - et peut-être la Suède - s'engagent sur le Tempest, chacun avec ses industriels dédiés. Certains, tels que MBDA ou encore Safran (qui figurent tous deux dans la liste « team Tempest »), tirent cependant leur épingle du jeu, en étant impliqués dans les deux programmes. https://www.journal-aviation.com/actualites/43040-l-italie-embarque-a-bord-du-tempest