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May 1, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Only 20 defense firms sought $17 billion in COVID loans. Now the Trump administration is weighing a fix.

By: Joe Gould

WASHINGTON ― Because fewer than 20 firms sought to apply for $17 billion in federal loans for Defense Department suppliers hurt by the coronavirus pandemic, the Trump administration is weighing how to broaden the eligibility requirements, a top Pentagon official said Thursday.

“The challenge is that this $17 billion worth of loans comes with some fairly invasive kind of riders, and I think companies have to think very carefully about whether that makes good business sense for them,” Under Secretary of Defense for Acquisition and Sustainment Ellen Lord said at a Pentagon news conference.

Treasury Secretary Steven Mnuchin, whose agency is implementing the loans, is requiring public companies seeking a share of $17 billion in coronavirus-related relief offer an equity stake to the government.

“It may not be as interesting as for private companies, so that's one of the differentiators I see,” Lord said.

The loans were intended for companies operating top secret facilities and with DX-rated contracts, which means the Pentagon deems them of highest national priority.

“I am not sure that companies with DX-rated contracts are the ones that have the most critical needs. They have had a little less than 20 companies reach out to date,” Lord said.

The Treasury Department has been in consultation with the Pentagon, and it's been open to ways the loan program could be expanded ― potentially to firms the Pentagon designates, Lord said.

“So I'm hoping that early next week, between the Treasury Department and the Department of Defense, we can come back with a little bit more fidelity to the defense industrial base to better identify who might most benefit from this particular money,” Lord said.

The agency had set a May 1 deadline for applications.

The $17 billion tranche in the CARES Act for COVID-19 relief was widely assumed to be targeted at Boeing, which is a prime defense contractor and had indicated that it might seek assistance. However, U.S. lawmakers have said the loans are intended to span the defense supply chain, said Andrew Hunter, director of the Center for Strategic and International Studies's Defense-Industrial Initiatives Group.

“I would just say the requirements under that program are pretty strict that," he said. "You have to be really in desperate need for financing and have no access to other forms of financing, you have to accept a lot of limits on how the business operates: [on] share buybacks, dividends, executive compensation. And so it's really been designed and set up as a lender of last resort to firms that really need that assistance.”

https://www.defensenews.com/congress/2020/04/30/only-20-defense-firms-sought-17-billion-in-covid-loans-now-the-trump-administration-is-weighing-a-fix/

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  • Israel launches first-ever multitier missile defense test

    December 17, 2020 | International, Aerospace, Naval

    Israel launches first-ever multitier missile defense test

    JERUSALEM — The Israel Missile Defense Organization and the U.S. Missile Defense Agency for the first time demonstrated a multilayered air defense system using the Iron Dome, David's Sling and Arrow weapon systems in a recent series of tests. “Using this approach, a variety of threats may be identified and intercepted via full coordination and interoperability between the systems,” Moshe Patel, the head of IMDO, said Monday. The organization falls under the purview of the Ministry of Defense, whose minster, Benny Gantz, praised the “development of a multilayered air defense system [that] secures us from threats near and far.” The Iron Dome system has been used against rockets and other threats for the last decade, and joint development with the U.S. has supported the Arrow and David's Sling programs. Israel delivered the first of two Iron Dome batteries to the U.S. Army earlier this year. The Israeli tests, which took place within the last few weeks but were announced Dec. 15, saw the systems deploy against cruise missile, UAV and ballistic missile targets. While Israel said the results of the tests will enable industry engineers to evaluate and upgrade the capabilities of the system, the wider context is that the announcement comes amid tension with Iran as well as improved relations between Israel and a number of Gulf states, according to experts. “U.S.-Israel cooperation on multilayered missile defense technologies continues to advance and is a critical factor in ensuring Israel can defend itself from a diverse array of threats posed by Iran and its proxies,” said Dan Shapiro, a visiting fellow at the Institute for National Security Studies, who served as U.S. ambassador to Israel in the Obama administration. Jonathan Schanzer, senior vice president for research at the Foundation for Defense of Democracies, said the ability of Israel's Iron Dome system to hit guided munitions is significant, “particularly as Iran increasingly seeks to arm its terrorist proxies with weapons that [have] evasive qualities. Has Israel developed tech to counter Iran's lethal precision-guided munitions effort? It certainly seems so.” The changing geopolitical environment in the region — particularly improved Israeli relations with Bahrain and the United Arab Emirates in recent months — is important, according to Udi Evental, a colonel in Israel's reserve-duty service and a senior fellow with the Institute for Policy and Strategy at the higher-education institution IDC Herzliya. “The normalization process opens new opportunities both for Israel, Arab states in the Gulf and the U.S.,” Evental said. “Israel might be able to deploy sensors and other means closer to Iran in a way that could offer more and better interception opportunities. ... The U.S. could lead the command and control of such an architecture and integrate into it some American assets as well.” Dan Feferman, a former strategic planner with the Israel Defense Forces and a fellow at the Jewish People Policy Institute, pointed out that “Iran spent a lot of money developing [its strike] capabilities. So [Israel] is testing [its weapons systems] out, and it is an attempt to show Iran and its proxies that [Israeli] capabilities will soon be neutralized and they might as well not bother trying.” In addition to challenging the effectiveness of Iran's regional strategy, the tests also serve as a model for how Israel's neighbors can enhance their own defenses against Iranian threats, according to Shapiro, the former U.S. ambassador to Israel. The tests, he explained, serve as “a source of deepened Israeli-Arab security coordination.” Gulf states could benefit from Israel's defense capabilities, especially in light of the drone and cruise missile attack on Saudi Arabia's Aramco facility in September 2019. Israel's MoD said the drill was in the works for a year, indicating that the planning came after the attack in Abqaiq. Shapiro's colleague, Yoel Guzansky, added that recent reports noted one Gulf state is interested in buying air defense technology from Israel. He also described the Abqaiq attack as a motivator for the recent tests. “For years, cruise missiles were a problem that had to be addressed: Like drones, they fly at low altitudes.” Patel indicated that any cooperative program like David's Sling and Arrow must be approved by the U.S. to market and export to Gulf customers. But Israel has more independence when it comes to Iron Dome, despite Raytheon's involvement in the system's U.S.-based manufacturing. Although it's too early to assume much, he said, “there is a lot of advantage like sharing information and sensors in those countries because we have the same enemies and launchers and more — but it is too early. We begin to build our defense cooperation; this could be considered in the future.” Israel's MoD said the tests indicate the systems are capable of simultaneously intercepting threats. Rafael Advanced Defense Systems is the prime contractor for the development of the David's Sling weapon system, in cooperation with the Raytheon. Israel Aerospace Industries' Elta Systems subsidiary developed the Multi-Mission Radar, and Elbit Systems developed the Golden Almond battle management system, both of which were involved in the tests. “When the different systems in the multilayered mechanism are combined, they may face a variety of simultaneous threats and defend the citizens of the state of Israel,” said retired Brig. Gen. Pini Yungman, executive vice president and head of Rafael's Air and Missile Defense Division. The tests were carried out at sea for safety reasons. The Iron Dome has been integrated with Israel's Navy in the form of the C-Dome, which is to be deployed with the service's new Sa'ar 6-class corvettes. Officials said David's Sling can also be used at sea. During the tests, Iron Dome was used to intercept cruise missiles — a new capability for a system that has historically been deployed against unguided rockets, drones and mortars. Israel has generally used Iron Dome against short-range threats around the Gaza Strip and Golan, while Arrow was used for the first time in 2017 and David's Sling for the first time in 2018 against threats from Syria. The Israel Defense Forces also integrated the multitiered system and sensors into a common air picture, tracking threats, sharing data and launching different interceptors with one command-and-control system for the first time. Combining multiple technologies using open architecture and sensors to create a kind of “glass battlefield” digital picture is a technology Rafael has been working on. This is also part of Israel's multiyear Momentum plan that foresees multilayered air defense as key to success in future wars against local adversaries and what Israel calls “third circle” threats like Iran. https://www.defensenews.com/training-sim/2020/12/16/israels-launches-first-ever-multitier-missile-defense-test/

  • L'industrie américaine de la Défense profite à plein de l'effet Trump

    October 30, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

    L'industrie américaine de la Défense profite à plein de l'effet Trump

    NICOLAS RAULINE Les principaux acteurs du secteur voient leur carnet de commandes grimper. Et les dépenses militaires américaines devraient continuer d'augmenter. Si les observateurs sont encore divisés sur l'existence d'un « Trump bump » pour l'économie américaine, le secteur de la Défense est, sans conteste, l'un des premiers bénéficiaires de la politique de la Maison-Blanche. La vague de résultats trimestriels de ces derniers jours en a encore apporté la preuve. Boeing , porté par ailleurs par ses activités dans le transport aérien, a ainsi relevé ses prévisions annuelles, après avoir publié des... Article complet: https://www.lesechos.fr/industrie-services/air-defense/0600054719752-lindustrie-americaine-de-la-defense-profite-a-plein-de-leffet-trump-2217773.php

  • Gulf countries beef up their undersea-warfare chops with European tech

    October 10, 2024 | International, Naval

    Gulf countries beef up their undersea-warfare chops with European tech

    French and Italian firms are on tap to supply sonar technology and miniature submarines to Saudi Arabia and Qatar, respectively.

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