August 18, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
Reshoring the defense supply chain may reduce national security risks, but a new report detailing a heavy dependency on goods and services from foreign countries like China shows reshoring may be easier said than done.
Researchers at Govini, a decision science company supporting the defense industry, analyzed data from over 1,000 Defense Department vendors across 100 industries to show how supply chain reliance on products from foreign countries has increased over the past decade. According to the survey, the number of Chinese suppliers in DOD's base increased by a total of 420% since 2010.
For cyber and information technology, two statistics stick out. The share of companies based in foreign nations in the supply chain grew the most in the packaged software and IT services between 2010 and 2019. Companies based in foreign countries made up 3% of the packaged software supplier base in 2010. That number rose to 7% in 2019. The numbers are similar for IT services: Companies based in foreign countries made up 3% of the IT services supplier base in 2010 and 7% in 2019.
Tara Murphy Dougherty, CEO of Govini, told Nextgov increasing adoption of IT infrastructure is critical for the Defense Department, particularly as COVID-19 forced the agency's workforce into mass telework. But that means it is imperative DOD addresses supply chain concerns for information and communications technology.
Murphy Dougherty said these two investment areas are only going to continue to grow, which means the department needs to act to clearly define its stance on IT supply chain security.
“What are you doing, other than responding to some of the legislation that we've seen come out of the Hill mandating investigation of this?” she said. “It would be great to see more options.”
A key mandate from Congress related to supply chain was supposed to take effect on an interim basis Thursday. Section 889 (a)(1)(b) of the 2019 National Defense Authorization Act bans agencies from contracting with companies that do business with five Chinese firms, including Huawei and ZTE. But according to a Defense News report, the Pentagon received a temporary waiver from the Director of National Intelligence pushing back the compliance date until September 30.
Defense Undersecretary for Acquisitions and Sustainment Ellen Lord said at a Professional Services Council webinar Thursday she needs feedback from industry on what's working and what's not when it comes to implementing the rule.
“I know we're all aligned in that we do not want adversaries in our supply chain. We don't want further theft of intellectual property. We don't want these nefarious actions going on,” Lord said. “But how do we get the language into the contracts, how do we practice the behaviors of ensuring we understand what we have in our supply chains for telecommunications equipment? What we need to do is continue to hear from you.”
It's not yet clear how the brief deadline extension will affect the implementation process. Regardless, visibility down the supply chain remains a key concern. Murphy Dougherty said there needs to be more transparency in supply chains if the industry is going to address security risks.
The Govini report focuses on firms in the mid-tier of the supply chain, with less visibility than a large company like Boeing. For companies further down the supply chain, U.S.-based companies make up less than half of the supplier base, according to the report. Chinese companies make up anywhere from 5% to 9% of the supplier base in the middle to lower ranges of the supply chain.
Murphy Dougherty said it's going to take time to see changes in the data. How to address the industrial base at a structural level remains an unanswered question, she said, and collaboration between DOD and industry will be critical in coming up with a new system to ensure supply chain security.
“It begs the question of do we have the right models in place today and the right framework for the department to get all of the goodness and partnership it possibly can out of the American commercial economy,” Murphy Dougherty said.
June 13, 2023 | International, Land
Germany aims to purchase six IRIS-T air defence systems for its air force at a total cost of some 900 million euros ($971.73 million), a defence source told Reuters ahead of a final decision by lawmakers on Wednesday.
January 15, 2020 | International, Aerospace
By: Sebastian Sprenger COLOGNE, Germany — Lockheed Martin's Sikorsky and Boeing have submitted their proposals for the German military's envisioned heavy transport helicopter program, the companies announced. Sikorsky is offering a version of the CH-53K designed for the U.S. Marine Corps, while Boeing is pitching the H-47 Chinook. The offers, due on Jan. 13, come in response to a request for proposals published by the Bundeswehr last summer. Government officials will spend the greater part of 2020 analyzing the submissions, with a second and final request for offers pegged for the end the year. The multibillion-dollar STH program, short for Schwerer Transporthubschrauber, is meant to replace the German fleet of decades-old CH-53G copters. Deliveries from the winning bidder are slated to begin in 2024 and last through the early 2030s — that is if the program receives budgetary support from the government and lawmakers when the time comes for a contract next year. Both companies have assembled a group of German suppliers that would oversee areas such as maintenance, simulators and documentation in an effort to maximize domestic industry participation. The Bundeswehr initially wanted a no-frills, off-the-shelf cargo helicopter that would be easy on the defense budget. Notably, the Germans also want to use the STH choppers for combat search-and-rescue operations, with plans to raise that mission profile throughout the Air Force's ranks. But last year's solicitation came with an unexpected level of complexity, Frank Crisafulli, Sikorsky's director of international business development for heavy helicopters, told reporters during a company presentation in Bonn, Germany, on Monday. “Folks were caught by surprise,” he said. The added complications are due, for example, to the Bundeswehr's goal of having the helicopters certified in accordance with European civilian aviation regulations. In addition, German officials want a weather radar better than the one offered in the Marine Corps version of the CH-53K, plus a multilayered radio communications setup," Crisafulli said. As envisioned, the STH program would plunge the German military into a model of contractor-driven support popularized by the U.S. Defense Department under the moniker of performance-based logistics, or PBL. The idea is that the government can save money by dictating to contractors what level of readiness it wants for its hardware, and then letting vendors figure out how to meet those objectives within a given budget. Pentagon auditors previously affirmed the basic premise of performance-based logistics, with one key caveat: The government must have enough insight and clout in the programs to be able to set sensible performance benchmarks at rates favorable to taxpayers. According to Mike Schmidt, CEO of Rheinmetall Aviation Services, one of Sikorsky's key local partners, the concept is relatively new for Germany. At an STH industry day in 2018, “nobody knew what PBL was,” he said. At stake for the contractors is a 40-year relationship with Germany over the life cycle of the program. Boeing has portrayed its Chinook offering as a low-risk and low-cost option because more than 950 of the aircraft are already used by 20 countries. Sikorsky has played up the aerial-refueling capabilities of the CH-53K, especially in conjunction with the Lockheed Martin-made KC-130J tanker, to increase range. https://www.defensenews.com/global/europe/2020/01/14/lockheed-boeing-enter-germanys-heavy-transport-helicopter-race/
August 7, 2020 | International, Aerospace
By: Jaroslaw Adamowski WARSAW, Poland — As Russia's military activities in the Baltic and Black seas are mounting pressure on NATO's eastern flank, a number of Eastern European countries are developing programs to acquire unmanned aerial vehicles for their militaries. In Romania, local analysts say the country's Ministry of National Defence aims to boost the military's surveillance, reconnaissance and intelligence (SRI) capabilities by acquiring new drones, ensuring the country's armed forces can efficiently monitor Romanian borders. “Romania wants to increase its SRI capacity in the Black Sea, taking into account that the militarization of the region by Russia is intensively continuing,” George Scutaru, head of the Bucharest-based New Strategy Center think tank and a former member of parliament and government adviser, told Defense News. “At the end of last April, the joint Defense Committees of the Romanian parliament adopted the request of the Ministry of National Defence to start the procurement procedures for five new programs, including the acquisition of UAV systems. Within this program, an acquisition of seven tactical-operative UAV systems is to be carried out.” Romania's previous attempt at purchasing drones for its military came in 2018 under a procedure to buy tactical UAVs for some 250 million lei (U.S. $56 million). The bidders included American firm AAI Corporation, Israel's Aeronautics Limited, BlueBird Aero Systems and Israel Aerospace Industries, as well as Romanian company Ymens Teamnet. However, a Romanian court canceled the tender after some bidders filed complaints. George Visan, the coordinator of the Black Sea Security Program at the Bucharest-based think tank Romania Energy Center, told Defense News it was “known that Romania would like to acquire at least six medium-altitude, long-endurance UAVs as well as a number of smaller tactical UAVs.” Similarly to the failed drone tender from 2018, the new competition is expected to attract bids from the United States, Israeli and Romanian companies. Anticipating the forthcoming procedure, last May, Israel's Elbit Systems signed a memorandum of understanding with local state-run aircraft companies Avioane Craiova and Romaero. “Elbit Systems can easily sell in Romania what it manufactures in Israel, but depending on the order, it is willing to integrate and transfer production here. Avioane Craiova used to produce trainers, IAR-99 aircraft and aero-structures for various manufacturers,” Visan said. The analyst says that, in parallel to its drone procurement programs, the ministry is also funding the development of two UAVs, the medium-range Ultra-20 VTOL and the combat Ultra-20 V drone, by the state-run Research Agency for Military Hardware and Technologies, hoping to secure foreign partners and ensure transfer of technology. “This doesn't preclude other acquisitions,” Visan said. Poland eyes combat, surveillance drones Meanwhile, Poland's Ministry of Defence is developing several acquisition programs to acquire UAVs. To date, the ministry has ordered short-range drones and mini drones, with more programs to procure surveillance and combat drones underway. “In the long-term, the Polish Armed Forces are planning to acquire about a dozen sets of mid-range UAVs under the Gryf program, several MALE combat-reconnaissance UAVs under the Zefir program, and vertical take-off and landing short-range UAVs for the navy under the Albatros program,” a spokesperson for the Polish ministry told Defense News. In 2018 and 2019, Polish privately-owned defense company WB Group secured two orders to deliver a total of 48 mini-drones to the Territorial Defense Forces (TDF), a military branch which comprises volunteers. “We have supplied two types of drones to the Polish military. The first one is FlyEye which, in addition to the TDF, is also used by the artillery forces and special forces in Poland. It can be used in a variety of missions, including reconnaissance, artillery guidance, search and resuce, but also to extend the range of battle management systems. This drone can guide missiles, becoming the heart of an anti-tank system. We have developed FlyEye for more than ten years, and new variants continue to be designed,” company spokesman Remigiusz Wilk told Defense News. “The second one is Warmate which combines reconnaissance capabilities and combat capacities as loitering munition, owing to which it's a highly precise weapon system.” WB Group is also exporting its drones, with Warmate's deliveries to four allies carried out through the NATO Support and Procurement Agency. Most recently, the manufacturer established a subsidiary in Ukraine where its UAVs have been operated by the country's military. “Our drones are combat-proven, and to date, not a single one has been lost over Ukrainian skies carrying out hundreds of challenging missions,” Wilk said. Other countries in the region that plan to acquire drones include the Czech Republic. Last November, Czech President Milos Zeman spurred controversy when he called on the government to buy Israeli UAVs for the armed forces. Combat drones are to be acquired under the country's military modernization program 2027, worth 100 billion koruna (U.S. $4.25 billion). https://www.defensenews.com/global/europe/2020/08/06/eastern-european-nato-allies-ramp-up-drone-buys-to-protect-their-borders/