Contracts For July 16, 2021

On the same subject

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  February 3, 2021 | International, Naval

  The report card is in for the US defense industry’s health

  By: Joe Gould WASHINGTON ― The health of America's defense industrial base ranks a middling “C” due to growing cyber vulnerabilities, a poor ability to surge production in a crisis, and political obstacles for defense budgeting, according to a lead defense trade group's new study. According to the National Defense Industrial Association's second annual “Vital Signs” report, the defense industrial base entered the COVID-19 pandemic in a weakened state despite healthier marks for competition, profitability and demand. The report, released Tuesday, graded eight performance areas from 0 to 100 for an average score of 74 for the year 2020. Government data firm Govini co-produced the data-driven report, which used the Pentagon's 2018 assessment of the defense industrial base as a jumping off point. “The defense industrial base is facing multiple headwinds: industrial security threats, flat future defense budgets, a shortage of skilled, cleared workers and decreased investments in the sciences that fuel U.S. innovation,” NDIA's chief executive, Hawk Carlisle, said in a statement. “Add to these the increased regulatory burdens and barriers for new entrants, which continue to shrink both the number of companies that participate in the DIB and the number of new companies entering the defense marketplace.” He added that the report, which makes no recommendations, ought to drive discussions as the Pentagon ramps up for competition with China and Russia. Though the study predates both COVID-19 and the revelation that elite cyber spies have spent months secretly exploiting SolarWinds' software to peer into computer networks, it raised alarms over industrial security. As data breaches and cybersecurity vulnerabilities both surged, industrial security overall showed “clear and continued deterioration,” ranking the lowest of all with a 56. The industrial base's ability to meet surge demand during a crisis received a failing grade of 66. Companies NDIA surveyed said that in the first 30 days, the industrial base could ramp up quickly but the rate of progress would slow soon thereafter; more than a 100 percent increase would take 180 days. More than half of firms said the availability of skilled labor would be a factor in increasing defense production, and 16.5 percent said a gap in U.S.-based human capital was the most vulnerable part of their supply chain ― in part fueled by a security clearance backlog. The size of the defense industry workforce fell to about 1.1 million people from its mid-1980s peak of 3.2 million, the report said. An analysis of public opinion, congressional action and regulatory action downgraded the “political and regulatory” outlook by 10 points since 2018 ― even prior to the pandemic and a related emphasis on domestic spending. A key factor was a new Cybersecurity Maturity Model Certification framework and its “additional regulatory burdens for all defense contractors,” the report said. Also, public opinion in favor of defense spending saw its largest decline since the Reagan-era defense buildup of the 1980s: A Gallup poll found that 17 percent of respondents felt the United States is spending too little on national defense and military purposes, down from 25 percent in 2019 and 33 percent in 2018. Industry can be pleased the “Demand” category jumped 16 points, corresponding with an increase in contract obligations issued by the Department of Defense. DoD contract obligations grew from $329 billion in fiscal 2017 to $394 billion in fiscal 2020, marking about a 20 percent increase. Foreign military sales also grew by nearly 20 percent over the same time period. Among all categories, major defense platforms ― aircraft, naval vessels and land vehicles ― were awarded the largest share of total contract obligation value, but contract obligation value for electronics and communication services grew 89 percent, leading all service categories. https://www.defensenews.com/2021/02/02/c-grade-for-us-defense-industrys-health-warns-trade-group-report

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  February 27, 2023 | International, C4ISR

  What will ChatGPT mean for the US defense industrial base?

  ChatGPT is already creating benefits as well as risks for defense professionals.

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  August 6, 2020 | International, Aerospace

  Air Force moves to enact space acquisition reforms, despite hold up of legislative proposals

  Nathan Strout WASHINGTON - The Pentagon is trying to move ahead with reforms to how it acquires space systems, even as a report outlining significant legislative changes has gotten held up by the Office of Management and Budget. Released in May, the Department of the Air Force report recommends nine specific proposals to improve contracting under the newly established U.S. Space Force. While most of the changes can be undertaken independently by the Department of Defense, three recommendations would require legislative action by Congress. But according to Deputy Assistant Secretary of the Air Force for Space Acquisition and Integration Shawn Barnes, the report has yet to get past OMB, which oversees the President's budget proposals and ensures legislation proposed by agencies is consistent with the administration. “[It's] still not on the hill. I'm a little frustrated by that, but I think we're very close with OMB at this point and I think we're just about there,” said Barnes during a July 30 call with reporters. “There are a couple of sticking points, but I'm not going to talk about those directly here.” Barnes continued on to say that OMB had no issues with the vast majority of the report. And while the Air Force has to wait for legislative action on some recommendations, Barnes said they are already moving ahead with internal reforms, such as establishing a distinct Space Force budget. “We're in the process of figuring out how to implement those actions within the alt-acquisition report that don't require any legislative change, and of the somewhat less than ten of those specific actions, probably six of them are within the Department of Defense's ability to get after. So we're building implementation plans for that,” he said. The most important recommendation in the report, at least according to the Air Force, is budgetary. They want to be able to consolidate Space Force budget line items along mission portfolios, such as missile warning or communications, instead of by platforms, allowing them more flexibility to move funding between related systems without having to submit reprogramming requests to Congress. This was a point of contention between the Pentagon and legislators last year, as the Air Force issued repeated reprogramming requests to secure the funding needed to push up the delivery date of the first Next Generation Overhead Persistent Infrared satellite. Barnes insisted that managing funding at the portfolio would give the Space Force more flexibility to react to program developments without sacrificing transparency. While funding would not longer be broken out at the program level, it could still be expressed at a lower level, he said. “We would still be breaking it down at a subordinate level but what we would hope is that we would have the ability to still move money from one of those subordinate levels to another, and that's where we can have that transparency,” he explained. https://www.c4isrnet.com/battlefield-tech/space/2020/07/30/air-force-moves-to-enact-space-acquisition-reforms-despite-hold-up-of-legislative-proposals