Navy looks to get back on schedule for fielding hypersonic missiles on submarines

On the same subject

• 

  March 24, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Pentagon loosens cash flow for industry, more measures likely coming

  By: Aaron Mehta WASHINGTON — The Pentagon has opened up cash flow for the defense industry, the latest in a series of moves from the department to combat economic damage brought about by the new coronavirus pandemic. In a memo released Sunday, the department announced that progress payment rates for defense items under contract will increase from 80 percent of cost to 90 percent for large businesses, and from 90 percent to 95 percent for small businesses. The move will allow industry to receive more cash up front than under normal circumstances. The order was signed by Kim Herrington, acting principal director for defense pricing and contracting at the Department of Defense. In a statement, spokesman Lt. Col. Mike Andrews called the move “an important avenue where industry cash flow can be improved." The Defense Contracting Management Agency “will work on mass modifications to contracts where applicable (vs one by one) using DCMA authorities,” Andrews said. “In addition, the Department is accelerating payments through several means to prime contracts and directing prime contracts to expedite payments to subcontractors.” The increase in cash flow was sought by both industry and supporters in Congress. An increase in early payments was one of the requests made by the Maine delegation to Defense Secretary Mark Esper last week. The Pentagon plans to return to normal operations once the national emergency caused by COVID-19 has passed. Notably, the announcement of the move included a warning that “it is especially important to understand that during this crisis the [defense-industrial base] is vulnerable to adversarial capital, we need to ensure companies stay in business without losing their technology.” Over the last two years the department has focused on ensuring Chinese investment is limited in the defense-industrial base. The move comes after the DoD issued guidance to industry that defense contractors are considered “critical infrastructure” under a Department of Homeland Security definition, which should allow contractors to continue to work even if local governments issue orders to freeze work, as has happened in New York and San Francisco. However, that guidance was advisory in nature and does not have the full legal authority that industry leadership had sought, per a Friday letter to Esper from the Aerospace Industry Association. “Recent DHS and USD (A&S) memoranda have been helpful on a case-by-case basis, but they are advisory in nature and not legally binding; to establish stability for our operations across the nation, the federal government should legally establish national security programs and our workforce as essential,” read the letter, signed by AIA head Eric Fanning; Northrop Grumman CEO Kathy Warden; and Kelly Ortberg, special adviser to the Office of the CEO of United Technologies. In an investors note, analyst Roman Schweizer of Cowen noted: “These new policies provide clarity on issues companies have been concerned about, but we do not think they alleviate all of industry's concerns nor do they eliminate all the disruption. But they are positive signs that DoD will help mitigate reasonable impact.” More efforts are likely to emerge in the coming days, including new measures from the Small Business Administration and its small business emergency loan program to help protect small key defense suppliers who are particularly vulnerable at this time. Major defense industry partners are also seeking relief in fulfilling contract milestones that could be impacted by the outbreak. “We encourage DoD to publish regulatory authority requiring contracting officers to consider financial relief as part of requests for equitable adjustments for measures we take in response to COVID-19,” the AIA letter read. “This includes relief related to bans, closures, quarantines and other travel restrictions, the loss of public infrastructure and public transportation, restricted access to resources and tools, and other public safety restrictions.” On Friday, the Acquisition and Sustainment division of the Small Business Office reached out to the defense industry's small businesses and is working with the Small Business Administration and its small business emergency loan program to help protect these companies. https://www.defensenews.com/coronavirus/2020/03/23/pentagon-loosens-cash-flow-for-industry-more-measures-likely-coming/

• 

  August 17, 2020 | International, Aerospace, C4ISR

  Spain’s Indra gets a key role in new Eurofighter radar development

  Sebastian Sprenger COLOGNE, Germany — Spanish defense contractor Indra is joining Germany's Hensoldt as a co-lead in the development of a new radar for the Eurofighter warplane, the company announced. The news comes after the German parliament in June approved a contract award to aircraft manufacturer Airbus worth almost $3 billion for a new version of the active electronically scanned array radar, dubbed Captor-E. More than half of that investment will go to sensor specialist Hensoldt, a former Airbus subsidiary. The contract is aimed at retrofitting roughly 130 German and Spanish aircraft in the mid-2020s, according to Hensoldt. Officials in Europe have billed the radar upgrade as a key prerequisite for keeping the Eurofighter relevant for future missions and possible sales — including ongoing acquisition decisions in Finland and Switzerland. Indra becoming the co-lead for the Captor-E's follow-on generation, dubbed Eurofighter Common Radar System Mk1, represents a boost to the company's prospects when it comes to developing a new generation of air warfare equipment. “The contract will allow Indra to create long-term highly-skilled jobs, in addition to reinforcing its technological expertise and role as a key supplier in the field of airborne sensors, as well as the leader of the Sensors technological pillar within the FCAS program,” the company wrote in a statement, referring to the German-French-Spanish Future Combat Air System program. The pairing of Hensoldt and Indra for the fully digitized Mk1 version of the radar represents something of a fork in the road for the aircraft's radar developments. To date, the “Euroradar” consortium — made up of Leonardo's British and Italian arms as well as Hensoldt and Indra — has overseen technology development for the multinational fighter program through the Captor-E, or Mk0, version. Kuwait and Qatar also purchased Mk0 upgrades for their respective Eurofighter fleets, though the Mk1 version is slated to go only into Spanish and German planes. The British military has said it wants its own sensor for the fleet of Royal Air Force Typhoons, reportedly with more specialized performance in the areas of air-to-ground and electronic warfare, as well as with an eye on connectivity to the American-made F-35 fighter jet. Italy has yet to declare which way it wants to go, meaning Leonardo stands to lose a lead role in the Mk1 development. The ongoing industrial teaming arrangements for the Eurofighter radar, complete with hedging and betting on political developments, can be seen as a precursor for a similar dynamic in Europe's race for a next-generation air weapon. The United Kingdom is spearheading the development of the Tempest fighter jet as a competition to the mainland's FCAS proposal. For Airbus, a co-lead in the project with France's Dassault, the Eurofighter is something of a test bed and bridging technology on the way toward more futuristic weaponry. https://www.c4isrnet.com/global/europe/2020/08/14/spains-indra-gets-a-key-role-in-new-eurofighter-radar-development/

• 

  May 19, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Choosing the right commercial tech for government

  By: Meagan Metzger In today's crisis-stricken world, it is heartening to see leaders recognizing the importance of government support for innovative, private sector solutions to the problems facing the defense industry. For the Department of Defense, reforming policies and refocusing priorities so that commercial tech can be successfully implemented to support the defense industry's mission is essential. The DoD's endorsement not only encourages emerging tech startups to consider government compliance and scale in their business models from the very beginning; it also protects our national security — and service members in uniform — by putting the most innovative technology into play. But creating more opportunities for commercial tech companies to secure government contracts is only the beginning. For government agencies to successfully take advantage of innovative tech from the private sector, a few things need to happen — and the sooner, the better. First, the government needs to look beyond legacy contracts. As has been noted by venture capital leaders, the announced provisions of the coronavirus relief legislation, the CARES Act, “to streamline the Defense Department contracting process” currently apply only to contracts worth $100 million or more. This excludes emerging commercially successful tech companies that could have a significant impact at the government level. Separate, though related, are needed reforms to the Small Business Innovation Research program. The National Defense Authorization Act for fiscal 2020 provides additional SBIR flexibility for small businesses that are more than 50 percent owned by venture capital, but the DoD has yet to fully promulgate this new flexibility authority. Until eligibility standards are adjusted, the DoD is missing the chance to work with proven, VC-backed companies. Of course not all commercial tech companies are equipped to support government missions; and to ignore the importance of a rigorous evaluation process is even more harmful than ignoring commercial tech all together. Finding emerging tech is easy. Evaluating and equipping tech companies for success in government is hard, particularly when national security is a critical concern. The COVID-19 crisis has made it even more apparent that government agencies need to be able to implement tech solutions quickly and trust that they will perform as expected. A tech company with proven success in the private sector may draw the government's attention and show that it can deliver, but there are other equally important indicators to consider when determining if a company is capable of performing as expected at the government level. The Pentagon, like any government agency, must rely on data-backed advice and expertise to identify which commercial tech solutions are most likely to succeed in the federal market. Finding technology companies should not be a quantity play, but focus more on fit and quality. Moving fast requires working with private sector partners who have experience vetting tech companies for government contracts, which we've seen leaders do, like Space and Missile Systems Center's Air Force Col. Russell Teehan and the head of Air Force Program Executive Office Digital Steven Wert. Partners that are federally focused — with deep knowledge of government problem sets and missions — can identify which tech companies are viable technically and will be viable in the federal market. Assessing tech's viability requires specific experience evaluating a set of qualitative characteristics unique to this market, in addition to the typical “can they work with government" questions like: “Where is the code compiled?” Government agencies should also look to VCs and accelerators that can specifically guide tech companies through the government market contracting process and equip them to succeed in the long term. For instance, in 2019, the United States Air Force worked with Dcode to scout technology for the service's Multi-Domain Operations Challenge, and seven of the 30 finalists were companies that had completed the Dcode accelerator to prepare for success in the federal market. Supporting these tech companies requires more than just a singular contract award. To get over the “valley of death,” companies have to understand everything from compliance to how to staff, rework operational processes and market effectively, to name a few. There is no question that working with the right emerging tech companies is imperative for the DoD and other government agencies. But at a moment in history when time is particularly of the essence, there is no room for trial and error when it comes to identifying which tech companies can meet the government's specific needs. By working with private sector partners that have extensive government expertise and proven results, the DoD can confidently implement innovative technology that addresses its most critical needs in a time of crises and well into the future. Meagan Metzger is the founder and CEO of Dcode. She also serves on an advisory board for Booz Allen Hamilton, and another advisory board for the Defense Entrepreneurs Forum. She previously worked as chief operating officer of a mobile and cloud company, as well as chief strategy officer at an IT consultancy. https://www.defensenews.com/opinion/commentary/2020/05/14/choosing-the-right-commercial-tech-for-government/