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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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  • Viasat to supply Britain’s future frigate with satellite communications tech

    November 3, 2020 | International, Naval, C4ISR

    Viasat to supply Britain’s future frigate with satellite communications tech

    By: Andrew Chuter LONDON — Progress toward boosting the British Royal Navy's frigate numbers with a new class of ship continues to advance, with the Babcock International-led consortium contracted to build the warships adding on satellite communication supplier Viasat to its list of subcontractors. A deal to supply ultrahigh-frequency satellite communications for five general-purpose frigates being built for the Royal Navy has gone to Viasat UK, the company announced Nov 3. Viasat is based in the U.S. and was ranked No. 69 on Defense News' latest list of the top 100 defense companies around the world. Ultrahigh-frequency SATCOM is a mission-critical capability that will provide the Type 31 with beyond-line-of-sight, secure, integrated voice and data services. The deal is the latest in a sequence of contract awards by Babcock over the last few months. This time last year, the Ministry of Defence hired the firm to design and build a British version of the Danish Iver Huitfeldt-class warship. About 75 percent of the Type 31 subcontracts have now been awarded, and Babcock remains confident the program is on schedule despite problems presented by the coronavirus pandemic. The Viasat deal follows a recent announcement from BAE Systems that it had come to an agreement with Babcock to deliver two Bofors 40 Mk4 and one Bofors 57 Mk3 multipurpose gun systems per ship. BAE said its Karlskoga facility in Sweden will deliver the weapons in 2023 and 2024. All of the major supply chain contracts on Type 31 have been decided, including the Thales Tacticos-based combat management system; MTU main engines and diesel generators; Renk main reduction gearboxes; MAN Energy Solutions propellers and propeller shaft lines; and Raytheon Anschutz's warship-integrated navigation and bridge system. Babcock and its partners BMT, Fraser Nash, OMT and Thales — collectively known as Babcock Team 31 — are to start construction of the first 6,000-ton warship next year, with 2027 set as the year it's to enter service. A covered construction hall capable of holding two Type 31s is progressing at Babcock's Rosyth shipyard in Scotland, where the Royal Navy's two 65,000-ton Queen Elizabeth-class aircraft carriers were recently completed. All five of the new frigates are due to have been completed — at an average cost of £250 million (U.S. $324 million) per ship — by 2028 to replace aging Type 23 frigates. Babcock announced in August that it had weeks earlier successfully completed the preliminary design review of the entire ship. BAE is also building Britain's Type 26 anti-submarine warfare frigate. The company has a contract for the first three warships, with the Royal Navy having an eventual requirement for eight vessels. As for Viasat UK, the SATCOM contract is the second defense deal it has secured in the last few days. Last week the company announced that, along with CDW UK, it had been awarded a two-year technical innovation contract for command, control and communication support for a program known as Lelantos. The agile experimentation initiative is to empower the headquarters of NATO's Allied Rapid Reaction Corps in Gloucester, England, with superior decision-making, cross-domain integration and fast maneuver in a conflict. https://www.defensenews.com/industry/2020/11/03/viasat-to-supply-britains-future-frigate-with-satellite-communications-tech

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  • LEONARDO TO LEAD OCEAN2020 PROGRAM, THE FIRST AND MOST IMPORTANT EUROPEAN DEFENCE AGENCY RESEARCH TENDER FOR NAVAL SURVEILLANCE TECHNOLOGY

    February 16, 2018 | International, Aerospace, Naval, C4ISR

    LEONARDO TO LEAD OCEAN2020 PROGRAM, THE FIRST AND MOST IMPORTANT EUROPEAN DEFENCE AGENCY RESEARCH TENDER FOR NAVAL SURVEILLANCE TECHNOLOGY

    OCEAN2020, a European Defence Fund initiative, will boost technological research in the naval domain also by the integration of unmanned platforms in surveillance and interdiction missions Leonardo is a leader in systems integration and will lead a team of 42 partner companies including Saab, Safran, PGZ and MBDA, research bodies such as NATO CMRE and the defence ministries of five countries The first operational demonstration will take place in 2019 in the Mediterranean Sea. The demo will involve Leonardo's ‘Hero' and ‘Solo' unmanned helicopters, naval vessels and systems from a number of partners, including Italian Navy's vessels equipped with Leonardo's systems Leonardo was awarded the most important project related to the first European Defence Found's initiative, OCEAN2020, to boost Europe's defence capabilities, issued by the European Union under the ‘Preparatory Action on Defence Research' programme. The competitive selection was conducted by the European Defence Agency and will be contracted in the coming weeks. The OCEAN2020 team, which will be led by Leonardo, comprises 42 partners from 15 European countries. These include the Ministries of Defence of Italy, Greece, Spain, Portugal and Lithuania, with additional support from the Ministries of Defence of Sweden, France, the United Kingdom and Estonia and the Netherlands. European industrial partners include Indra, Safran, Saab, MBDA, PGZ/CTM, Hensoldt, Intracom-IDE, Fincantieri and QinetiQ. A number of research centres include Fraunhofer, TNO, CMRE (NATO) and IAI. “We are extremely pleased with this result, the OCEAN2020 initiative has a high level of strategic and technological-operational value” said Alessandro Profumo, CEO of Leonardo. “It is the leading technological research project dedicated to the very topical issue of maritime surveillance, which is of interest across Europe and to the Mediterranean region in particular. This success has been made possible thanks to the strong collaboration between all 42 team partners which we have the honour to lead.” OCEAN2020 is the first example of a cross-European military research programme to-date. The Leonardo-led bid required a thorough analysis of operational requirements and a technologically-innovative yet operationally-realistic proposal. The research project also will see the integration of unmanned platforms in surveillance and interdiction missions. The success in winning the tender both highlights, and will enhance, Leonardo's strength in naval products and integrated systems. The company's expertise in the domain includes command and control systems, unmanned aircraft, sensors, helicopters for naval applications, communications and weapon systems, on the surface and underwater. OCEAN2020 will see unmanned platforms of different type (fixed wing, rotary wing, surface and underwater) integrated with naval units' command and control centres, allowing for data exchange via satellite, with command and control centres on land. The joint and cooperative use of both manned and unmanned vehicles will also be demonstrated as part of the project. Leonardo would like to thank the Italian Navy which, as a key OCEAN2020 partner, has and will continue to make important contributions to the project. This includes the development of operational scenarios and making available naval assets and helicopters, which will take part in demonstrations. In addition to complex simulation work, OCEAN2020 project will involve two live demonstrations of maritime surveillance and interdiction operations, conducted by European fleets using unmanned aircraft, surface vessels and underwater systems. The first demo, scheduled to take place in the Mediterranean Sea in 2019, will be coordinated by the Italian Navy and will see Leonardo's ‘Hero' and ‘Solo' unmanned helicopters operate from Italian naval units alongside other European partners. The second demonstration, which will take place in 2020 in the Baltic Sea, will be coordinated by the Swedish Navy. The data collected by various systems during these two demos will be processed and sent to a prototype European command and control centre in Brussels. http://www.leonardocompany.com/en/-/ocean-2020

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