September 30, 2020 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

New COVID bill dampens hopes for defense industry aid

WASHINGTON ― Democrats unveiled a $2.2 trillion coronavirus relief package Monday night without defense industry stimulus funding, hinting that the billions of dollars defense firms sought to diffuse the economic impact of the pandemic are not coming.

Defense officials warned they will have to tap modernization and readiness funds if Congress does not appropriate about $10 billion for defense contractors' coronavirus-related expenses, as authorized by Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act. However, neither the new Democratic measure nor the last draft from Senate Republicans contained any such aid.

Smaller than the $3.4 trillion bill that passed the House in May in order to come closer to a compromise with Republicans, the new bill comes as House Speaker Nancy Pelosi, D-Calif., and Treasury Secretary Steven Mnuchin are attempting to revive long-stalled aid negotiations. The House bill could be a final attempt to pass coronavirus aid legislation before the Nov. 3 presidential and congressional elections.

The House bill does propose nearly $2.5 billion for defense: $320 million in emergency operations and maintenance funding for the services to buy personal protective equipment; $1.4 billion to pay salaries and other needs of military base facilities like child care centers and post exchanges that are usually paid by revenue-generating accounts; and $705 million for the Defense Health Program to cover COVID-19 prophylactics, therapeutics and personal protective equipment.

Senate Majority Leader Mitch McConnell, R-Ky., proposed his own $300 billion bill, but that legislation failed in the Senate earlier this month. That bill left out the $29 billion for defense ― which included $11 billion in Section 3610 reimbursements ― that Republicans proposed in their $1 trillion stimulus in July.

The Senate is set to vote on a House-passed continuing resolution to prevent a government shutdown. It would extend the window for Section 3610 reimbursements through Dec. 11, a step sought by trade groups. But there has been no matching appropriation.

Defense industry sources say lobbying for aid hasn't gained traction beyond a handful of hawkish Republicans, despite a public push from Pentagon acquisition chief Ellen Lord. The Pentagon's senior-most officials have not been as vocal as Lord, and lawmakers from both parties have been wary of new spending that favors industry after the Pentagon won a timely budget at record levels.

“There's never been an appetite for defense stimulus from the parties that matter,” an industry source told Defense News. “I would be shocked if defense, being in neither of the two chambers' bills, ended up in the final bill.”

Undercutting the argument that defense industry relief would immediately stimulate the economy, Lord said earlier last week that it will likely take five to six months before industry receives any reimbursements under the CARES Act. Lord also said that only 30 of the hundreds of defense subcontractors shuttered by the pandemic remained closed.

Days ago, Lockheed Martin reportedly signed off on a 8.3 percent quarterly dividend increase to pay $2.60 per share and announced plans for an additional $1.3 billion share buyback. Lockheed is one of the main recipients of the Pentagon's accelerated payments to contractors, meant to boost cash flow to large and small defense companies during the coronavirus crisis.

In May, Democratic lawmakers questioned Pentagon leaders about why they had spent just 23 percent of the $10.5 billion the department received under the CARES Act. The Pentagon responded with with its spending plan for the aid, which allocated $688 million to aid suppliers of aircraft engine parts, shipbuilding, electronics and space launch.

Last week, key progressives, Reps. Marc Pocan and Barbara Lee, demanded an investigation and public hearings into that use of economic stimulus funding for defense contractors, calling it a “Pentagon misuse of COVID funds.” The Pentagon has refuted that characterization.

https://www.defensenews.com/congress/2020/09/29/new-covid-bill-dampens-hopes-for-defense-industry-aid/

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January 4, 2019 | International, Aerospace

New in 2019: Air Force looks for new bomb designs to fight Russia and China
By: Kyle Rempfer A growing cohort of Air Force researchers are arguing that the service needs to undergo a munitions revolution if it is to take on a peer-level adversary in open conflict. “We're developing a range of technologies to enable next-generation and improve precision effects on the battlefield,” Col. Garry Haase, who helms the Air Force Research Lab Munitions Directorate, told an audience at the Air Force Association Annual Conference this fall. In some instances, that will mean more powerful munitions to breach and destroy Russian and Chinese structures in the event of war. “There is now a shift in emphasis away from minimizing to maximizing effects in a high-end fight,” said John Wilcox, vice president of advanced programs and technology at Northrop Grumman, at the conference. “Requirements from our missions directorate say we continue to have to deal with the whole spectrum of threats as we shift to more of a near-peer threat focus,” Wilcox added. “We are looking at larger munitions with bigger effects.” And while neither members of the AFA panel named Russia or China specifically, a recent study by the Mitchell Institute, which is aligned with the Air Force Association, certainly did. In the document, titled “The Munition Effects Revolution," several retired senior Air Force officers argue that the U.S. munitions arsenal is overdue for a shakeup. “The bomb body, a steel shell filled with explosive material, is relatively unchanged across the past 100 years," the study reads. "But some elements of modern munitions have significantly evolved—particularly guidance elements. Munition effects—the destructive envelope of heat, blast, and fragmentation—remain essentially unchanged.” High demand for combat aircraft is a key driver behind the need for enhanced munitions options, according to the Mitchell Institute. “The Air Force is currently operating the smallest and oldest aircraft force in its history,” the study reads. “Additionally, current mission capable rates are low and pilots are in increasingly short supply. To best meet combatant command requirements amidst these constraints, it is crucial to ensure each sortie flown and every bomb dropped yields maximum potential.” https://www.airforcetimes.com/news/your-air-force/2019/01/03/new-in-2019-air-force-looks-for-new-bomb-designs-to-fight-russia-and-china
September 11, 2024 | International, Aerospace

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September 17, 2018 | International, Aerospace

Air Force awards next GPS satellite contract
By: Valerie Insinna WASHINGTON — Lockheed Martin has scooped up a contract, worth up to $7.2 billion, for the latest batch of next-generation GPS satellites. The award decision comes as little surprise, as Lockheed Martin is the incumbent on the GPS III program responsible for manufacturing the first 10 satellites. It was also the sole bidder on the most recent contracting vehicle, which will span an additional 22 satellites. “The world is dependent on GPS, from getting directions to getting cash from an ATM machine or trading on the stock exchange,” said Air Force Secretary Heather Wilson in a statement. “These satellites will provide greater accuracy and improved anti-jamming capabilities, making them more resilient.” Three companies — Lockheed Martin, Boeing and Northrop Grumman —won Phase 1 contracts for the follow-one program in 2016 to perform feasibility studies, but the Boeing and Northrop Grumman dropped out of the competition. Boeing in April 2018 confirmed that it did not bid on the opportunity, stating that the solicitation “emphasized mature production to current GPS requirements and did not value lower cost, payload performance or flexibility.” Full article: https://www.c4isrnet.com/space/2018/09/14/air-force-awards-next-gps-satellite-contract

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New COVID bill dampens hopes for defense industry aid

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