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April 14, 2022 | International, Aerospace

U.S. Army May Revive 5GAT Target Program

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  • Citing TransDigm, DoD seeks new acquisition powers, and trade groups oppose

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

    Citing TransDigm, DoD seeks new acquisition powers, and trade groups oppose

    By: Joe Gould WASHINGTON ― Four defense industry trade associations “strongly oppose" a handful of Pentagon-backed procurement reform proposals that they say would harm the defense industrial base, and they're asking Congress to reject them. Two of the proposals aim at controversial pricing practices used by TransDigm by requiring contractors to submit cost information for commercial items and by requiring contracting officers to conduct a commercial item determination for every procurement. Others would set a preference for performance-based contract payments and authorize the Defense Department to release or disclose detailed manufacturing or process data. The May 6 protest letter came from the Acquisition Reform Working Group — made up of the National Defense Industrial Association, American Council of Engineering Companies, the Computing Technology Industry Association and the Information Technology Industry Council — to the the House and Senate armed services committees. It comes as the panels were readying their drafts of the 2021 National Defense Authorization Act. The Pentagon has worked to monitor its network of suppliers from the economic shocks associated with the coronavirus pandemic and to protect suppliers by using emergency funding from Congress to speed payments and improve cash flow along the supply chain. The trade groups noted they represent “thousands of small, mid-sized, and large companies in addition to hundreds of thousands of employees that provide goods, services, and personnel to the Department of Defense,” and said the four proposals a “could have significant consequences for the defense industrial base.” Congress focused ire at TransDigm last year after the Defense Department's Inspector General found for $26.2 million in parts the military bought from TransDigm, it earned $16.1 million in excess profit. Transdigm was the only manufacturer of the majority of the parts, which let it set the market prices even for competitively awarded parts. Though DoD has argued its contractors need new latitude to make commercial item determinations and obtain cost or pricing information to prevent the excessive pricing TransDigm was accused of, the trade groups argue the TransDigm's actions weren't facilitated by an inappropriate reliance on improper commercial item determinations, or insufficient access to pricing data. “As illustrated by the TransDigm Group, Inc's pricing practices, generally once a conversion to a commercial product or commercial service is made, it is common for prices to increase and subsequent contracting officers find it difficult to obtain data necessary to determine price reasonableness and negotiate fair and reasonable prices on behalf of the taxpayer,” the department said in its proposal. Another proposal would require a contractor to submit uncertified cost information for commercial item proposals or contracts less than $2 million. The idea behind the reform is DoD wants to be able to get more insight into the costs of sole-source items and put itself in a more favorable position to negotiate with sole-source companies. Congressional hearings on TransDigm's excessive pricing showed Defense leaders need the authority to obtain the data “to the extent necessary to determine price reasonableness is paramount in ensuring that such excessive pricing practices are curtailed.” But the trade groups argue that levying the new regulations would “add a significant barrier to commercial item acquisition, reduce information sharing, further burden the system, and impede—rather than enable—the delivery of capabilities to the warfighter at the ‘speed of relevance'—all with little to no added protection for the government or the taxpayer." The trade associations also opposed DoD's legislation to set a preference for performance-based contract payments. The groups said a DoD proposal to “recouple” total performance-based payments to total cost incurred would reverse Congress's previous work to emphasize performance over cost and contradict a spate of defense acquisitions rules. DoD's argument is that it shouldn't be reimbursing a contractor more than its actual costs, or it “would result in negative levels of contractor investment,” and create a disincentive for contractors to deliver. Another disputed proposal would let DoD release detailed manufacturing or process data, or DPMD, pertaining to privately funded commercial or noncommercial items outside of the government to third parties seeking to compete against the original equipment manufacturer. It's the latest episode in a running game of tug-of-war between industry and DoD over intellectual property. While Congress has in recent years prodded DoD to set intellectual property strategies early in acquisition programs and negotiate for IP rights on a case-by-case basis, the trade groups argue the proposal would give DoD “an automatic default authority” and “eliminate the possibility of a negotiated solution.” https://www.defensenews.com/congress/2020/05/15/citing-transdigm-dod-seeks-new-acquisition-powers-and-trade-groups-oppose/

  • Saab delivers first Global Eye early-warning plane to UAE

    April 30, 2020 | International, Aerospace

    Saab delivers first Global Eye early-warning plane to UAE

    By: Sebastian Sprenger COLOGNE, Germany — Saab has delivered its first GlobalEye early-warning plane to the United Arab Emirates, the company announced Wednesday. The aircraft arrived in Dubai during the late morning of April 29 following a brief stopover in Bulgaria on its way from Sweden, Saab CEO Micael Johansson said during a call with reporters. The delivery caps four and a half years of work since the UAE and Saab signed a contract for three of the planes — modified Bombardier 6000 business jets equipped with Saab's Erieye long-range radar and other surveillance sensors. Saab is advertising GlobalEye as able to provide ground, air and maritime surveillance in a single package. “The delivery of the first GlobalEye is a major milestone for Saab, but also an important step in the history of airborne early warning and control,” Johansson said. “We have set a new standard for the market, and I am proud to say that we have delivered the most advanced airborne surveillance solution in the world to the United Arab Emirates.” The company, which has been spared from work stoppages in Sweden caused elsewhere by the coronavirus pandemic, had to take “a number of mitigating actions” to prevent the virus from spreading during the actual handover and during the weeks leading up to it, Johansson said. The measures included testing workers for the virus, quarantining them if warranted and retesting them afterward, according to Johansson. Saab is still working to produce the additional two aircraft owed under the 2015 contract. Those would be delivered “rather shortly,” the executive told reporters, declining to be more specific. The company is eyeing the potential sale of yet two more GlobalEye aircraft to the UAE. Such an option is included in the original deal, though details have yet to be finalized. Johansson cited Finland and South Korea as countries also interested in the GlobalEye technology. If Saab manages to drum up additional customers, future offerings are slated to include the Global 6500 jet as carriers, he said. https://www.defensenews.com/global/europe/2020/04/29/saab-delivers-first-global-eye-early-warning-plane-to-uae

  • Money and missions: NATO should learn from Europe’s pandemic response

    August 21, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Money and missions: NATO should learn from Europe’s pandemic response

    By: Charles V. Peña The first COVID-19 clusters appeared in Italy in late February, and by early March the Italian authorities issued a decree to install strict public health measures, including social distancing first in the affected regions and then nationwide. Soon afterward, Spain, France and many other European countries instituted similar public health measures. Without debating the efficacy of those measures, the important takeaway is that when faced with what was viewed as a clear and present danger, European countries acted in their own self-interest without having to depend on the U.S. to counter the threat posed by COVID-19. They need to take that same approach for their own security and responsibilities under NATO. It is not a question of resources or capabilities — it is largely a matter of political will. The low hanging fruit for our European NATO allies is to meet their pledge of spending 2 percent of their gross domestic product on defense. Currently nine countries meet that threshold: the United States (3.42 percent), Bulgaria (3.25 percent), Greece (2.28 percent), the United Kingdom (2.14 percent), Estonia (2.14 percent), Romania (2.04 percent), Lithuania (2.03 percent), Latvia (2.01 percent) and Poland (2 percent). Noticeably absent are Germany (1.38 percent), France (1.84 percent) and Italy (1.22 percent) — the fourth, seventh and eighth largest economies in the world. These are wealthy countries that can afford to make the necessary investment. Indeed, the combined GDP of NATO Europe is nearly on par with the U.S. — about $17.5 trillion versus about $20 trillion. Yet, the U.S. spends more than double on defense than our European NATO allies. Other than political will, there is no real reason that European NATO countries cannot spend 2 percent of their GDP for their own defense. Yet, even though Germany previously pledged to meet its 2 percent obligation, Berlin is proposing a new metric based on a country's defense needs — perhaps because U.S. President Donald Trump has stated that he wants European allies to spend 4 percent of their GDP on defense (a metric even the U.S. does not meet). Beyond spending, there is the question of what threat NATO should counter. Originally created in 1949, NATO was intended to counter the Soviet military threat and communist expansion. At the height of the Cold War, the Soviet Union and its Warsaw Pact allies had some 4 million troops and 60,000 main battle tanks deployed against Western Europe — and threatened invasion via the North German Plain, Hof Corridor and Fulda Gap. But today's Russian Federation is not the Soviet Union. Nonetheless, NATO's European countries have the resources to counter a Russian military threat (although it's worth noting that NATO Secretary General Jens Stoltenberg recently said: “We don't see any imminent threat against any NATO ally.”) NATO Europe's combined GDP is 10 times larger than Russia's — more than $17 trillion versus $1.7 trillion. And current defense spending is also in Europe's favor by more than 4-to-1 ($287 billion versus $65 billion). Again, there is no practical reason why NATO Europe cannot make the necessary investments to provide for its security. It is more a question of political will. Moreover, if NATO is concerned about Russia as a potential threat, it should think twice about continuing to expand the alliance eastward onto Russia's doorstep. Rather than providing increased security, it may do more to provoke the Russian bear. Part of the problem is that NATO has largely strayed from its original purpose of collective defense against the Soviet Union (and now Russia). According to the NATO website, the organization is “an active and leading contributor to peace and security on the international stage” that “promotes democratic values and is committed to the peaceful resolution of disputes” with “approximately 20,000 military personnel ... engaged in NATO operations and missions around the world.” If Russia is deemed a threat to Europe and NATO, then the European members of NATO need to take primary responsibility for defending themselves against that threat — and they should view that threat widely to include Russian cyberthreats as well as misinformation and disinformation campaigns meant to undermine elections. That doesn't mean a U.S. withdrawal from NATO. But it is long past the post-World War II era when European countries were struggling to regain their footing and needed America to be the bulwark of its defense. Europe as a whole is today an economic powerhouse — second only to the United States. NATO Europe can and should do more to provide for its own security rather than depending on the U.S. to act as the front line of its defense. All that needs to happen is for those countries to be as serious as they were with COVID-19 and take the same approach to national security as they did when the pandemic began. Charles V. Peña is a senior fellow with Defense Priorities. He has experience supporting the U.S. departments of Defense and Homeland Security. He previously served as the director of defense for policy studies at the Cato Institute, and he is author of “Winning the Un—War: A New Strategy for the War on Terrorism.” https://www.defensenews.com/opinion/commentary/2020/08/20/money-and-missions-nato-should-learn-from-europes-pandemic-response/

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