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June 11, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Lord: Defense Contractors Need Billions In COVID-19 Relief

The Pentagon is likely to seek double-digit billions of dollars to reimburse defense contractors that were authorized to seek the money by the CARES Act to preserve their workforce during the COVID-19 crisis, the Pentagon's top procurement officer told lawmakers June 10.

The problem is that while the section of the $2 trillion COVID-19 relief bill allows contractors to seek that reimbursement, the bill did not provide any related funding. For just one prime contractor, the estimated costs to keep its workforce in a steady state throughout the crisis exceeds $1 billion, Ellen Lord, the under secretary of acquisition, logistics and technology, said during a House Armed Services Committee hearing.

Without additional funding, Lord warns that the Pentagon will “eat into readiness and modernization and slow down readiness and modernization on an ongoing basis.”

Aviation and aviation propulsion are two of the hardest-hit areas of the defense industrial base, because of the implosion of the civil aviation industry, she said. Satellite launches also have been hit, given their dependence on the commercial industry, Lord said.

Lawmakers were looking for details about how much would be needed for defense contractors, as they anticipate a new COVID-19 spending bill will move through Congress at the end of July.

According to Lord, there have been 960 closures and 859 reopenings due to COVID-19. The average closure is about 57 days. But contractors will be specifically requesting reimbursement for issues that affected their employees.

So far, contractors are holding back from seeking claims because they are aware that no appropriation exists yet. The Pentagon's internal acquisition group has been tracking data from prime contractors; subcontractors, though, may not be sharing all of their issues to avoid revealing proprietary data, she said, while pledging to provide specific guidance on allowable costs within 30 days.

“The defense industrial base is the nexus of economic and national security and it's vitally important to make sure it stays as healthy as possible,” she said.

https://aviationweek.com/defense-space/budget-policy-operations/lord-defense-contractors-need-billions-covid-19-relief

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    June 13, 2019 | International, Aerospace, Security

    India to launch a defense-based space research agency

    By: Vivek Raghuvanshi NEW DELHI — In a move to bolster India's space warfare capabilities, the ruling National Democratic Alliance government has approved the creation of the Defence Space Research Organisation. DSRO will provide technical and research support to its parent organization, the Defence Space Agency. Last week, India's Cabinet Committee on Security, led by Prime Minister Narendra Modi, approved the creation of DSRO to also develop space warfare systems and associated technology, according to a Ministry of Defence official. DSRO will be headed by a senior defense scientist who will lead a team of other scientists. The agency is expected to be operational by the end of this year. The organization is also charged with finding and implementing defense applications for India's entire spectrum of space technologies. In April, the government established the Defence Space Agency, or DSA, to command the space assets of the Army, Navy and Air Force, including the military's anti-satellite capability. The agency is also to formulate a strategy to protect India's interests in space, including addressing space-based threats. The MoD official noted that the creation of the two agencies is aimed at developing a multidimensional approach to using outer space for strategic purposes. The DSA will be headed by an Air Force vice marshal and will have a staff of 200 personnel from three wings of the armed forces, according to another MoD official. In addition, the DSA will seek input on space as a domain of warfare from the Indian Space Research Organisation and the Defence Research and Development Organization. India's existing military space agencies — including the Defence Imagery Processing and Analysis Centre, located in New Delhi, and the Defence Satellite Control Centre, located in Bhopal — will be merged with DSA. In March, India also conducted an anti-satellite test, which demonstrated its capability to shoot down satellites in space. https://www.defensenews.com/space/2019/06/12/india-to-launch-a-defense-based-space-research-agency/

  • Big A&D Firms Seem To Be Merging Or Acquiring—Where’s Honeywell?

    August 14, 2019 | International, Aerospace

    Big A&D Firms Seem To Be Merging Or Acquiring—Where’s Honeywell?

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