Manufacturing woes could sink US sub fleet. Can 3D printing save it?

On the same subject

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  April 29, 2020 | International, Naval

  U.S. Navy pays contractors $600 million held back to ensure performance

  WASHINGTON (Reuters) - The U.S. Navy has paid defense contractors $600 million it had withheld to ensure contract performance, hoping the funds would shore up finances for suppliers ravaged by the coronavirus-driven economic downturn, a Navy official said on Tuesday. The move, which follows a similar action taken by the Air Force that released billions of dollars in payments, is aimed at replacing revenue vital Pentagon suppliers have lost in their non-military businesses as the spreading coronavirus has halted business activity nationwide. “We were immediately able to infuse about $600 million of funds that we had on withholds,” James Geurts, the assistant secretary of the Navy for research, development and acquisition, told reporters on a conference call. A Navy spokesperson said “for example, with the ship repair industry, withholds were reduced to one percent.” The Navy was unable to say whether a portion of the $600 million was withheld due to poor contractor performance. The Department of Defense has also accelerated contract awards as it leverages its portion of the more than $700 billion annual defense budget to help keep suppliers afloat. Geurts wrote a memo on March 24 to his staff directing them to release or reduce the withholds. It did not discuss rectifying the root causes. Government waste watch-dogs criticized the move. “This current emergency shouldn't be an excuse to avoid accountability for poor performance that predated this outbreak,” said Mandy Smithberger, of the Project On Government Oversight in Washington. Earlier this month, Geurts said he had authorized “hundreds of millions” of dollars to be paid out to top suppliers like General Dynamics (GD.N) and Huntington Ingalls Industries (HII.N) which could flow to the supply chain. Representatives from Huntington Ingalls and General Dynamics said the Navy was not withholding money from them for poor performance. While the Navy did not name any companies that received payments, industry sources have said the biggest contractors have been filtering coronavirus-related funds to their suppliers and subcontractors who, because of their smaller size, are on much shakier financial footing. The Navy's multi-layered supply chain is comprised of companies building out President Donald Trump's vision for a 350 ship here Navy. The funding will help pay salaries and ensure hard-to-replace workers are not lost to other industries or early retirement. Geurts has said the Navy is pushing money into the defense industrial base by speeding up contract payments, hastening contract awards and releasing funds withheld for poor past performance. The U.S. Air Force said it would release $882 million in payments to Boeing (BA.N) that were held back due to flaws in the KC-46 air refueling tanker. https://www.reuters.com/article/us-usa-navy-procurement/u-s-navy-pays-contractors-600-million-held-back-to-ensure-performance-idUSKCN22A33L

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  April 1, 2024 | International, Land

  BAE Systems receives $318 million services contract for M109 Self-Propelled Howitzers

  The contract includes technical and sustainment support services for the U.S. Army's fleet of M109A6 and A7 Self-Propelled Howitzers and their companion, M992A3 carrier, ammunition, tracked vehicles.

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  April 7, 2020 | International, Aerospace

  Boeing extends plant shutdowns in Washington state

  ByEd Adamczyk April 6 (UPI) -- Boeing Co. announced an extension of a production suspension in its Washington state facilities, and signaled that layoffs and buyouts could be coming, to help stem the spread of COVID-19. The company's Puget Sound and Moses Lake sites will be closed until further notice because of the spread of the coronavirus, additional advice from state health authorities and supply chain disruptions, the company said in a Sunday statement. The original shutdown began on March 23 and was scheduled for two weeks. The Puget Sound facilities are mostly known for constructing commercial aircraft, but the military's KC-46 tanker and P-8 maritime patrol aircraft are built on the same lines. Boeing officials said last month the stoppage is not expected to affect their production too greatly. Boeing employs about 70,000 people in the region. Last week it announced a two-week closure of facilities in the Philadelphia area for two weeks due to the spread of the virus. In a letter last week to employees, CEO David Calhoun predicted that the company's recovery from the health crisis will be lengthy. "When the world emerges from the pandemic, the size of the commercial market and the types of products and services our customers want and need will likely be different," he said. "It's important we start adjusting to our new reality now." Within several weeks, a buyout package will be offered to some of Boeing's 161,000 U.S. employees. Nearly one-third of its 27,000 unionized machinists are over 55, and with an aging workforce a buyout could find many takers. While the company appears to be eligible to receive funds from a $17 billion loan available to the aviation industry included in the $2 trillion federal stimulus package it is required to maintain staffing at 90 percent of current levels. https://www.upi.com/Defense-News/2020/04/06/Boeing-extends-plant-shutdowns-in-Washington-state/2371586187284