October 21, 2023 | International, Aerospace
Here’s when the first T-7 trainer is to fly to Edwards Air Force Base
Mark your calendar: The U.S. Air Force plans to fly its first T-7A Red Hawk trainer halfway across the country for testing.
May 27, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
Will defense budgets remain ‘sticky’ after the COVID-19 pandemic?
By: Eric Lofgren
Congress' unprecedented fiscal response to COVID-19 has many in the defense community wondering whether belt tightening will hit the Pentagon. On May 19, the Congressional Progressive Caucus wrote a letter arguing for substantial defense budget cuts to support additional spending on the pandemic. Nonprofit progressive supporters have been asking to cut a much larger $350 billion each year from the Pentagon in their “Moral Budget” proposal. What the progressives perhaps do not fully appreciate is the “stickiness” of defense budgets.
In economics, stickiness refers to rigidity in the movement of wages and prices despite broader economic shifts pushing for new equilibrium. The phenomenon is apparent in defense budgets as well. Most expectations are that the fiscal 2021 budget will remain over $700 billion.
Consider an analogy: the 2008 financial crisis. Lehman Brothers collapsed just a couple weeks before fiscal year 2009 started, leaving that $666 billion defense budget largely beyond recall. The following years' budgets were $691 billion, $687 billion, $646 billion and then finally in FY13 a more precipitous 10 percent fall to $578 billion. It took four years for the Pentagon to really feel the squeeze of the financial downturn.
The uninitiated may believe COVID-19 happened with enough of lead time to affect the FY21 budget. Congress received the president's budget in February 2020 and has until the start of October to make targeted cuts without encountering another continuing resolution.
The defense budget, however, represents the culmination of a multiyear process balancing thousands of stakeholder interests. It reflects a vast amount of information processed at every level of the military enterprise.
The Pentagon's work on the FY21 budget request started nearly two years ahead of time and includes a register of funding estimates out to FY25. Moreover, defense programs are devised and approved based on life-cycle cost and schedule estimates. Cuts to a thorough plan may flip the analysis of alternatives on its head, recommending pivots to new systems or architectures and upsetting contract performance.
Not only are current budgets shaped by many years of planning, but they get detailed to an almost microscopic level. For example, the Army's FY21 research, development, test and evaluation request totaled $12.8 billion, less than 2 percent of the overall Pentagon request. Yet the appropriation identifies 267 program elements decomposing into a staggering 2,883 budget program activity codes averaging less than $10 million each.
Congressional staff is too small to understand the implications of many cost, schedule and technical trade-offs. To gather information on impacts, the Pentagon is thrown into a frenzy of fire drills. More draconian measures, like the FY13 sequestration, leading to indiscriminate, across-the-board cuts can sidestep hard questions but comes at a significant cost to efficiency.
Targeted cuts at a strategic level, such as to the nuclear recapitalization programs and other big-ticket items, can expect stiff resistance. First, there is real concern about great power competition and the damage that may be wrought by acting on short-term impulses.
Second, targeted programs and their contractors will immediately report the estimated number of job losses by district. Before measures can get passed, a coalition of congressional members negatively impacted may oppose the cuts. Resistance is intensified considering the proximity to Election Day. Budget stickiness is built into the political process.
The FY22 budget is perhaps the first Pentagon budget that can start inching downward. More than likely, severe cuts aren't in the offing until FY23 or FY24 at the very earliest. That gives time for policymakers to reflect on the scale of the rebalancing between defense and other priorities.
In some important ways, congressional control of the Pentagon through many thousands of budget line items restricts its own flexibility. For example, continuing resolutions lock in program funding to the previous year's level until political disagreements can be resolved. The military cannot stick to its own plans, much less start new things. If budget lines were detailed at a higher level, such as by major organization or capability area, then the Pentagon could make more trade-offs while Congress debates.
Similarly, if the Pentagon had more budget flexibility, then Congress could more easily cut top lines and allow Pentagon leaders to figure out how to maximize with the constraint during the year of execution. Congress could gain the option to defer the hard questions that can make cuts politically difficult.
The Space Force recently released a proposal for consolidating budget line items into higher-level capability areas. It reflects the idea that portfolio-centric management is an efficient method of handling rapid changes in technologies, requirements or financial guidance resulting from economic shocks. Until such reforms are pursued, expect defense budgets to remain sticky.
Eric Lofgren is a research fellow at the Center for Government Contracting at George Mason University. He manages a blog and podcast on weapon systems acquisition. He previously served as a senior analyst at Technomics Inc., supporting the U.S. Defense Department's Cost Assessment and Program Evaluation office.
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September 25, 2019 | International, Land
SDLE has been awarded the contract for maintenance of the Leopard 2A4 towers
Madrid, September 25, 2019 - The Spanish Ministry of Defence has awarded Star Defence Logistics & Engineering (SDLE) the contract for the maintenance of the Leopard 2A4 vehicle towers. This service for the Spanish Army covers the repair of assemblies and sub-assemblies of the vehicle's fire control systems, as well as the preventive and evolutionary maintenance of the systems. The preventive maintenance will be carried out at the different Army Operating Units, while the corrective and evolutionary maintenance will be fulfilled at SDLE main headquarters, located in Móstoles (Madrid). The company's facilities are fitted with infrastructure for the repair of complete vehicles. Within this contract, all systems failures will be repaired, as well as the obsolescences and product improvements will also be done. This contract, with a total budget of 1.5 million euros, will be developed until the end of 2021. During the last year, SDLE tripled its workforce, currently having 160 employees. This growth has come from the strong commitment and investment in R&D, which earned the company the recognition of Innovative SME in 2018. SDLE has recently expanded its facilities and opened new Optronics, Electronics and Communications & Security Departments, which join the company's Engineering Department for the development of logistical support software at military operations. About SDLE Star Defence Logistics & Engineering (www.sdle.info) has an extensive experience as independent distributor of spare parts for military vehicles and equipment. SDLE is one of the main suppliers of the military sector in Spain, and is already exporting products and services to more than 25 countries. Its continuous growth and commitment to innovation have led the company to also be a leader in logistical and technological support services, as well as in the development of UAVs. Aeronáutica SDLE is the Group Divison specialized in the development and integration of unmanned aerial systems for Defence and Security use. In this field, it stands out for the development of anti-drone systems and solutions to improve the situational awareness of land vehicles. Communication Department Star Defence Logistics & Engineering S.L. Tel. (+34) 914 989 196 tmartinez@sdle.es www.sdle.info https://www.epicos.com/article/486812/sdle-has-been-awarded-contract-maintenance-leopard-2a4-towers
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February 4, 2019 | International, Aerospace
Industry bids are in for Finland’s $13 billion fighter race
By: Gerard O'Dwyer HELSINKI – Finland's HX-FP multirole fighter replacement program has advanced to the next stage as five aircraft manufacturers have tendered their proposals to the Finnish Defence Forces' (FDF) Logistics Command office. The proposals include preliminary quotations on cost. The air force plans to retire its fleet of F/A-18 C/D Hornet jets between 2025 and 2029. The HX-FP carries an estimated price tag of €11.4 billion, a cost that includes life cycle service and maintenance overheads on a fleet of 64 multirole aircraft. The government received proposals from four countries, including the United States, Sweden, France and Britain. The aircraft types covered in the proposals are Boeing's F/A-18 Super Hornet, Lockheed Martin's F-35, France's Dassault Rafale, the British-made Eurofighter and the Swedish Saab Gripen. The Saab proposal includes both the single-seat Gripen E and the dual-seat Gripen F versions. Request for Quotation (RFQ) documents were dispatched by the Logistics Command to the governments of France, the United States, Britain and Sweden in April 2018. The petitions were then forwarded to the five participating manufacturers. The deadline for acceptance of responses was Jan. 31, 2019. The proposals received by the Logistics Command include information pertaining to technical systems requirements for operating a fleet of 64 aircraft, as well as support documentation dealing with training systems, essential maintenance tools, testing equipment, spare parts, weapons systems and sensors. The next stage in the HX-FP program will be an analysis of the various proposals. This is expected to be completed during the first half of 2019. At that point, the procurement program will enter the first phase of a negotiations process during which a more forensic examination of the quotations tendered will be conducted in consultation with the five bidding manufacturers. The Logistics Command will forward a more detailed RFQ to manufacturers during the second half of 2019. This will precede the second phase of negotiations. Participating manufacturers will be required to submit final tender documents to the government during the second stage process which is slated to end in 2020. The Finnish government plans to bring its final decision to the national parliament for approval in 2021. The proposal presented by Saab sets out the basis for a broad, long-term industrial cooperation between Finland and Sweden framed around any deal. The proposal covers the production of military aircraft in Finland. It also includes the transfer of maintenance, repair and overhaul capabilities to local industry in Finland. Moreover, Saab is proposing to establish a Gripen sustainment and development center in Finland. https://www.defensenews.com/global/europe/2019/02/01/industry-bids-are-in-for-finlands-13-billion-fighter-race