April 13, 2021 | International, Aerospace, Naval, Land, C4ISR, Security
Contracts for April 9, 2021
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April 7, 2020 | International, Aerospace
With the commercial aviation industry in a nosedive, the Defense Department offers airlines a lifeline
By: Valerie Insinna
WASHINGTON — As the coronavirus pandemic roils the commercial airline industry, U.S. Transportation Command is becoming increasingly concerned about the impact to the Civil Reserve Air Fleet, a program where U.S. airlines like United and Delta can fly transport missions on behalf of the Defense Department in an emergency.
The White House has not officially activated the Civil Reserve Air Fleet, or CRAF, to support of COVID-19 prevention operations. However, as travel restrictions force airlines to cancel flights and make cuts to their aircraft fleets, the military is looking for opportunities where it can offload work to its CRAF partners in the hopes of softening the financial blow, said Army Gen. Stephen Lyons, who leads TRANSCOM.
“On a cargo side, the civil aviation fleet is going pretty strong. On a passenger side, it has dropped off significantly,” Lyons told reporters Tuesday.
“We're talking to [commercial airline companies] regularly. I am concerned, to some degree, about impacts on the passenger segment of the aviation industry, so any opportunity we have to push workload in their direction, we're doing that.”
According to the Air Force, 25 airlines and a total 433 aircraft are involved in the CRAF program as of April 2019 — though those numbers often change on a monthly basis, the service notes.
So far, no commercial airline companies have notified the Defense Department that they will not be able to meet their contractual commitments for the CRAF program, said Air Mobility Command spokeswoman Capt. Nicole Ferrara.
But while the churn of the commercial airline industry hasn't immediately resulted in a reduction of assets for the CRAF program, it remains to be seen whether there could be long term impact, especially as companies whittle down the size of their fleets and number of types of aircraft.
For instance, Delta Airlines in March announced it would speed up the retirements of its McDonnell Douglas MD-88 and MD-90 aircraft, as well as some older Boeing 767s.
Meanwhile, American Airlines announced it would accelerate the retirements of a number of aircraft fleets. Instead of retiring in 2025, its Boeing 757s will be phased out by mid-2021, while its Boeing 767s will leave the fleet this May instead of next year. The airline will also phase out all 20 of its Embraer E190s and all nine of its A330-300s over the next year.
To help companies build up revenue, the U.S. government issued contract awards to a number of commercial airlines to perform “repatriation flights” that transport American citizens and U.S. permanent residents, who are stranded in foreign countries, back to U.S. soil. On March 27, TRANSCOM was tapped to assist the Department of State Repatriation Task Force by managing contracts with the U.S. airline industry for commercial aircraft used to return Americans to the United States.
So far, TRANSCOM has been responsible for scheduling commercial flights for about 1,200 people since the command took over contracting efforts, Dave Dunn, a spokesman for the command, told Defense News last week.
During the first mission, planned for April 4, National Airlines transported U.S. citizens and permanent residents from Nigeria to Washington. TRANSCOM has also awarded contracts to Delta Air Lines and Omni Air for repatriation missions, with total value of $2.5 million across all three vendors.
There have still been some limited challenges to scheduling repatriation flights on commercial airlines, noted Dunn. For instance, travel restrictions caused by the coronavirus outbreak have made it difficult to route stopovers for crew rest and fuel, as many normal locations are not available.
However, Lyons said he expects the number of repatriation flights performed by commercial vendors to grow “significantly.”
“There will still be small numbers that move on a space available basis [via military aircraft] but the main effort is through our Civil Reserve Aviation Fleet partners that we use on a day-to-day basis,” he said.
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June 9, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
Defense industry aid in limbo as new COVID package drags
By: Joe Gould WASHINGTON ― It's been seven weeks since Pentagon officials first pledged to ask Congress for billions of dollars in the next stimulus package to help defense contractors affected by the coronavirus pandemic, but the request remains in limbo. Though the pandemic, according to Department of Defense officials, has been hitting space-launch companies as well as the aviation and shipbuilding supply chains, the Trump administration appears to have sidelined a request to provide more financial support. Such support would supplement $688 million for the defense-industrial base that the DoD previously earmarked as part of the $10.5 billion it got from the coronavirus relief fund created under the CARES Act. New friction between Congress and the Trump administration over the latter's use of the military to respond to nationwide protests as well as its slow use of past stimulus funds likely spell headwinds for another tranche of aid, observers say. “First question will be whether there will ever be another stimulus, given current animosity between the Hill and administration,” said Bill Greenwalt, a defense consultant who was a senior defense acquisitions official in the George W. Bush administration. Undersecretary of Defense for Acquisition and Sustainment Ellen Lord said April 20 that the DoD plans to ask for “billions and billions” in a new package to help Pentagon suppliers, pending approval from the White House Office of Management and Budget. Lawmakers will have a chance to ask what that request would contain and about the health of the defense-industrial base when she testifies before the House Armed Services Committee on Wednesday. Defense Secretary Mark Esper said at a public event May 4 that he anticipated “the likely need for additional monies” for medical supplies and “to continue priming the defense-industrial base.” “We want people at work, we want our base at work, we want to continue with payments, we want to help with cash flow, and we're looking at a variety of ways by which we can do that. Again, it's very important,” he said. By that time, the Pentagon had submitted the request to OMB, where it has since stalled, according to two congressional aides. The DoD, in close contact with industry, has projected a three-month slowdown for top weapons programs and sought to make $3 billion in expedited “progress payments" to increase cash flow to primary contractors and more vulnerable, smaller subcontractors. Pandemic-related closures and other disruptions are expected to mean some number of weapons programs will also cost more and arrive later than initially anticipated. “There is no doubt there will be an impact on cost and schedule of DoD programs when the vast majority of people are not going to work,” Greenwalt said. “Then you have the issues of disruption of supply chains and actual closed lines due to the virus.” Meanwhile, Congress is split over how next to address economic and health care crises created by the pandemic. Senate Majority Leader Mitch McConnell, R-Ky., wants to measure the impact of past tranches before taking up more funding, saying there are no plans to advance a stimulus bill before the two-week recess begins July 3. He and President Donald Trump were still discussing last week how to fashion the next economic stimulus bill. A stronger-than-expected jobs report could further scramble an already uncertain picture for passing a fifth and possibly final coronavirus aid bill. The positive statistics are feeding the wait-and-see approach of the White House and its GOP allies in Congress. It's also unclear how Congress will be predisposed to a request for more defense funding after it was disclosed last month that the Pentagon has so far placed on contract only 23 percent of the $10.5 billion it was afforded by the CARES Act. The DoD responded to lawmaker concerns with its spending plan for the aid, which prioritized suppliers of aircraft engine parts, shipbuilding, electronics and space launch. House Armed Services Committee Chairman Adam Smith, D-Wash., said in April that Congress ought to forgo a spending boost for the DoD in COVID-19 aid packages, as public health needs were more pressing. Along similar lines, more than two dozen House Democrats wrote Smith to say defense spending for 2021 should be lower than 2020's $738 billion top line, and that COVID-19 aid should be increased. For its part, the National Defense Industrial Association has called for a supplemental defense spending bill to cover the military's pandemic-related costs. It remains to be seen whether the massive fiscal 2021 National Defense Authorization Act will emerge as a potential vehicle for the aid. The Senate Armed Services Committee was this week occupied with the markup of its version of the bill, and the House Armed Services Committee expects to take up its version in late June and early July. “Pentagon leaders are going to be climbing uphill on this request generally given that the GOP is souring on any more stimulus at all,” said Mackenzie Eaglen, a defense budget analyst with the American Enterprise Institute. “Not a party-wide belief yet by any means, but there was already a desire to move on, and the focus now is on the protests and NDAA markup.” Though the Pentagon's request isn't public, Eaglen said it was initially based on the armed services' lists of items left unfunded in Trump's FY21 budget request, which are heavy with procurement programs. Eaglen suggested the administration would do better to find savings within the DoD's own budget. “I think it will be important for DoD not to look tone-deaf,” Eaglen said. “There will be excess readiness and other funds that should go to stimulus priorities first and then, if there is any gap, Congress can plug it from there.” https://www.defensenews.com/congress/2020/06/09/defense-industry-aid-in-limbo-as-new-covid-aid-drags
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May 7, 2020 | International, Aerospace
Lockheed Martin reacts to the spread of coronavirus
1 APRIL 2020 • In News Lockheed Martin has responded to the impact of the coronavirus outbreak, including support for those in the company's supply chain. Marillyn Hewson, CEO of Lockheed Martin said: “At Lockheed Martin, we recognize that the rapid spread of Covid-19 and its wide-ranging impacts have caused severe disruption across society and tragic loss of life around the world. We also recognize that the global pandemic has created a need for urgent action by government, business, communities and citizens. “In response to this crisis, our company will be guided by and operate with three clear priorities. First, we will continue to protect the health and safety of our men and women on the job and their families. Second, we will continue to perform and deliver for our customers because what they do for our national security, global communications, and infrastructure is critical to our nation and our allies. Third, we will do our part to use our know-how, resources, and leadership as a company to assist our communities and our country during this period of national crisis. “In this regard, today I am announcing that Lockheed Martin will take the following steps as an initial contribution to the national Covid-19 relief and recovery effort: We will advance more than $50 million to small- and medium-sized business partners in our supply chain to ensure they have the financial means to continue to operate, sustain jobs, and support the economy We will donate $10 million to non-profit organizations involved in Covid-19 related relief and assistance, with emphasis on veterans and military families We have activated a $6.5 million employee disaster relief fund to assist Lockheed Martin employees and retirees impacted with Covid-19 “These are our initial financial steps to help during this time of national need. In addition: We will offer Lockheed Martin's engineering and technical capabilities to help solve the most pressing challenges faced by federal, state, and local officials We will donate the use of our corporate aircraft and vehicle fleet for Covid-19 relief logistical support and medical supply delivery We will donate the use of our facilities for crisis-related activities including critical medical supply storage, distribution, and Covid-19 testing, where needed and practical Finally, during this time of economic uncertainty, we will continue our planned recruiting and hiring. Given the requirement for social distancing, Lockheed Martin will deploy virtual technology and other techniques to sustain our hiring activity during this crisis period “Lockheed Martin understands that the shared effort to combat COVID-19 and recover from its effects will be a long-term one. We will continue to engage national, state, and local leaders to undertake additional measures as needed. “And, throughout this crisis, Lockheed Martin remains committed to continuing to deliver critical capabilities for our nation and our allies, supporting job creation and economic recovery, and helping those in need wherever we operate.” www.lockheedmartin.com https://www.aero-mag.com/lockheed-martin-coronavirus-response-010420/