US Space Force launches ‘Victus Nox’ responsive space mission

On the same subject

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  July 6, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Opinion: Why Interest On Federal Debt Matters For Defense

  Byron Callan June 30, 2020 The COVID-19 pandemic has stoked consternation that U.S. defense spending is going to be significantly pressured in the 2020s. Congress will likely stick to the $740.5 billion defense discretionary top line agreed to in last year's budget deal for fiscal 2021. But the combination of trillions more in federal debt from higher spending and lower tax receipts this year and next and the probability that there will be future federal spending to better prepare for pandemics raise a higher probability of defense spending pressure. “Flat” was already the new “up,” but “flat” now may be a budget that does not keep pace with annual inflation. The fears may be that defense spending will decline in the 2020s after a couple of good years of largesse from Congress and the White House. Despite trillions in additional deficits and federal borrowing in 2020-21, there is one bright spot that indicates less dire defense spending pressures than now perceived—the interest on the federal debt. U.S. federal debt is comprised of debt held by the public and intragovernmental debt, which is owned by different federal trust funds, the largest of which is Social Security. As of May, total debt held by the public was $19.8 trillion, and intragovernmental debt was another $6 trillion. Often, these two sums are lumped together, but they should be treated separately. The interest paid on debt held by the public is dispersed by the Treasury in the form of outlays to the owners of that debt. The interest paid on intragovernmental debt is, in essence, interest the federal government pays itself. The Office of Management and Budget (OMB), in its annual projections of outlays, breaks out these two components of interest outlays to show net interest outlays. This is mandatory spending, and so it has been paid along with the other mandatory and discretionary funding the U.S. federal government provides. One of the silver linings of the pandemic has been the Federal Reserve's aggressive lowering of interest rates. This makes federal debt more affordable, much in the way that a lower interest rate on a home mortgage can make a place to live more affordable. The OMB projections released in February showed net interest outlays of $378 billion for fiscal 2021 rising to $665 billion by 2030. One could take issue with the deficit projections behind these outlay projects, as they may have rested on GDP growth expectations that were too optimistic and nondefense spending cuts that were not going to be realized. However, dividing interest outlays on debt held by the public by debt projections implied an interest rate of 3% or more over the forecast period. The pandemic has trashed those rate projections. Federal debt held by the public is offered in different maturities. Treasury bills, which mature in a year or less as of May, were 23% of the total debt held by the public. Treasury notes that mature in 1-10 years were 51%, and bonds that mature in 10-30 years were 12%. (There is another 10% of other Treasury instruments.) Rates now are much lower, although clearly that would only matter for new debt that is issued by the Treasury. The rate on a 90-day Treasury bill is currently 0.13%. On a five-year note, it is 0.33%, and on the 10-year note, 0.69%. The 30-year note rate is 1.4%. This implies that interest outlay projections should be declining, although new projections may have to wait until the White House releases its 2022 fiscal budget request and out-year projections, presumably in February-March 2021. Net interest outlays could be at least $100 billion less in 2022-23 than the February 2020 projections on higher debt but lower rates. In the scheme of total federal outlays, which the OMB projected to be $4.8 trillion for 2021, $100 billion is not a lot, but it indicates there is a bit more headroom for defense spending and other nondefense discretionary spending than a focus on federal debt alone might suggest. Federal infrastructure spending could be one area of more traction in the 2020s, and the issue of social justice may also spur more demand for federal resources. One outcome of the pandemic, however, will be to make defense expectations more sensitive to interest rate expectations. It is not too difficult to project scenarios with rising debt and interest rates that increase to more “normal” levels. The pandemic also underscores that the unthinkable should be given a bit more room on long-term projections. It is quite conceivable that a major military conflict, a massive natural disaster or another economic contraction could further add to federal debt in the 2020s. https://aviationweek.com/defense-space/budget-policy-operations/opinion-why-interest-federal-debt-matters-defense

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  July 22, 2020 | International, Aerospace

  Boeing and Etihad Broaden Sustainability Alliance by Testing Innovations on ecoDemonstrator 787

  Seattle, July 20, 2020 /PRNewswire/ - Boeing [NYSE:BA] and Etihad Airways will use a 787-10 Dreamliner to test ways to reduce emissions and noise as part of the aerospace company's ecoDemonstrator program before the airline accepts delivery of the airplane this fall. The collaboration, which includes extensive sound measurement testing with industry partners, builds on a strategic sustainability alliance Boeing and Etihad formed in November 2019. "This is the latest program under Etihad's industry-leading strategic partnership with Boeing, focusing on innovating real-world solutions to the key sustainability challenges facing the aviation industry," Etihad Aviation Group Chief Executive Officer Tony Douglas said. "The ecoDemonstrator program is founded on innovation and sustainability — and these are core values for Etihad Airways, Abu Dhabi and the United Arab Emirates. Etihad and Boeing see a great opportunity to collaborate and share knowledge to minimize the impact of aviation on the environment." The ecoDemonstrator program utilizes commercial aircraft to test technologies that can make aviation safer and more sustainable now and into the future. The 2020 program, which will begin testing in August, is the first to use a Boeing 787-10. "Industry collaboration is a key aspect of Boeing's ecoDemonstrator program that enables us to accelerate innovation," said Stan Deal, Boeing Commercial Airplanes president and CEO. "We're proud to broaden our sustainability partnership with Etihad Airways by testing promising technologies that can reduce emissions, help commercial aviation meet our climate goals, and allow the industry to grow in a responsible manner that respects our planet and its natural resources." Boeing and Etihad will work with industry-leading partners, including NASA and Safran Landing Systems, to conduct aircraft noise measurements from sensors on the airplane and the ground. The data will be used to validate aircraft noise prediction processes and the sound reduction potential of aircraft designs, including landing gear, that are modified for quieter operations. In addition, a flight will be conducted during which pilots, air traffic controllers and an airline's operations center will simultaneously share digital information to optimize routing efficiency and enhance safety by reducing workload and radio frequency congestion. Test flights will be flown on a blend of sustainable fuel, which significantly lowers aviation's environmental footprint. The testing program is expected to last about four weeks before Etihad enters its Boeing 787-10 into service. Contact Saffana Michael Boeing Communications saffana.michael2@boeing.com Mobile: +97150 4590651 Paul McElroy Boeing Communications paul.mcelroy2@boeing.com Mobile: +1 425-283-7740 SOURCE Boeing View source version on Boeing Newsroom: https://boeing.mediaroom.com/2020-07-20-Boeing-and-Etihad-Broaden-Sustainability-Alliance-by-Testing-Innovations-on-ecoDemonstrator-787

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

  The defense industry remains in dire straits. Congress must pass another relief package.

  By: Mackenzie Eaglen House Armed Services Committee Chairman Adam Smith, D-Wash., and Sen. Dick Durbin, D-Ill., ranking member of the Senate Appropriations Subcommittee on Defense, recently wrote in an op-ed on Defense News that Congress “cannot panic and hand out blank checks to defense contractors.” They were concerned with a “lack of detail” in the Pentagon's stimulus funding request. Pentagon officials have responded with said requested detail. It's clear the defense, shipbuilding and aerospace industrial base — an “essential” workforce as designated by the Department of Homeland Security — is indeed in need of help. These critical firms need financial support to the tune of about $11 billion to support more than 100,000 direct jobs. Nor should the military have to take it out of hide, as suggested by some. According to the Defense Department, the data from industry is showing 30-40 percent inefficiency across the defense industrial base, but certain sectors like shipbuilding are experiencing 50-60 percent inefficiency. At shipyards, for example, blue-collar worker attendance ranges from just half to 70 percent. Other short-term sectors at risk include textile manufacturers, body armor suppliers and small business electronics suppliers, who feed guidance systems and wiring harnesses in Army vehicles and aircraft. A sampling of specific reasons for inefficiency include: Confirmed cases or quarantines Government facility closure/standdown test delays Telework Closures due to travel restrictions Logistic implications caused by travel restrictions requiring commercial freight Availability of parts and supplies High absentee rates Local and state lockdowns Foreign government lockdowns Supplier shutdowns Pentagon leaders are worried about the near term, but also permanent damage. Officials are “concerned with a potential loss of critical labor skills,” such as welders. Shipbuilders are in dire straits given the “significant touch labor” required to build a ship and “greater facility impact from social distancing.” The potential shutdown of one of the “big seven” private shipyards is a real risk right now. The Virginia-class attack submarine is currently experiencing delays in its production line, as Newport News Shipbuilding has “prioritized its available workforce on supporting maintenance for in-service submarines and aircraft carriers.” If electricians, engineers and solderers shift from the Virginia assembly line elsewhere, the work is slowed and “the opportunity for the cost to come down on each successive submarine hull is diminished.” Congress has repeatedly supported this program above recent budget requests and presumably cares greatly about this unanticipated cost overrun through no fault of nor negligence by the contractor. The Air Force is experiencing major program delays due to the impact on the aerospace industrial base — both primes and suppliers. Programs impacted include the F-35 Joint Strike Fighter and KC-46 tanker due to facility shutdowns in the U.S., England, Italy and Japan. These two aircraft programs will likely miss major milestones — therefore delaying the time when they become available to the war fighter. Aircraft engine-maker GE Aviation is a “fragility concern” across the armed forces. For the Air Force, the Joint Air-to-Surface Standoff Missile and the Advanced Medium-Range Air-to-Air Missile are “being impacted by reduced workforce and facility availability.” The Small Diameter Bomb motor supplier is being pulled to support the Federal Emergency Management Agency with motors for hospital beds. Aerospace firms with commercial work are reporting problems given the massive decline in commercial demand, which affects defense. Contrary to the assertion that the Pentagon doesn't need more stimulus money to support contractors, the services are “concerned about large commercial companies, like Boeing and GE that are critical to our defense industrial base facing negative cash flow and other associated impacts from COVID-19.” Small businesses and subcontractors are particularly vulnerable as they have far less slack to respond to crises. Many live contract to contract, as indicated by a 2018 Pentagon report. According to the Defense Department, “small businesses ... have been the hit the hardest due to unfamiliarity that [the] defense industrial base is exempt from most local shelter-in-place orders.” The Pentagon's request for more stimulus money is not a case of pork for primes. This industry has “a notably high rate of subcontracted work flow and systems with high component volumes, driving job loss directly to program partners and the supply chain.” So while virtually all of the Pentagon's missiles are built by two primes, 98 percent of the subcontractors making parts for U.S. munitions are the only source for these items. If these unique businesses fail, there may not be any replacements. A study last year by George Mason University found “contractor workforce challenges have a direct impact on the government's ability to ramp up quickly.” Budget fluctuations are particularly hard on small companies that “do not have large enough portfolios to shift people between projects. The contractor workforce loses skills or move on.” These firms operate with “thin margins and low lines of credit.” The additional costs to respond to COVID-19 were not part of the original contracts the companies are currently performing, and warrant stimulus money. Hopefully, Chairman Smith and Sen. Durbin now agree. https://www.defensenews.com/opinion/commentary/2020/08/18/the-defense-industry-remains-in-dire-straits-congress-must-pass-another-relief-package/