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  • COVID-19 Alters DOD View Of Supply Chain

    April 29, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    COVID-19 Alters DOD View Of Supply Chain

    Lee Hudson The spread of the novel coronavirus has changed the way the Defense Department views its supply chain and the military is beginning to understand where the industrial base is “hyper efficient but very brittle,” according to the U.S. Navy acquisition executive. The Pentagon is discovering there are components made by either a single supplier or an overseas supplier that is impacted by COVID-19, Hondo Geurts, assistant secretary of the Navy for research, development and acquisition, told reporters April 28. Geurts said the COVID-19 pandemic is forcing the Pentagon to dig deeper into understanding various supply chain elements. This allows the military to begin making deliberate choices in where it needs additional “resilience” or “flexibility, he said. “We meet now weekly at the department level to have a look through industrial base concerns, issues, hot spots or strategic challenges,” Geurts said. “That's one of the areas that I view, when we come out of this, that needs to be a normal course of business.” The Pentagon identified Mexico and India as countries where the defense industrial base is being hit hard by supplier closures, Ellen Lord, under secretary of defense for acquisition and sustainment, told reporters April 20. Geurts said it is not that other nations do not deem defense work as essential, but they are facing different circumstances with the novel coronavirus. His team is looking at various programs where there are overseas supply chains and understanding how they are operating or not during this time. The Navy not only has many contracts with suppliers in Mexico, but also in Italy and Spain. “We're just keeping an eye on it,” Geurts said. “We have flexibility and may have programs that rephase elements of construction or use stock we have on hand.” Separately, since commercial aviation is being hard hit by COVID-19, the Pentagon is specifically focusing on propulsion contractors to put in orders during this time by rephasing work. For example, the military did not intend to purchase an engine until three months from now, but because of the global pandemic will submit an order early. “There'll be a natural limitation of funding, so we can't do that infinitely, but we're looking to leverage all the different tool sets we have,” Geurts said. https://aviationweek.com/defense-space/supply-chain/covid-19-alters-dod-view-supply-chain

  • Back hard-hit businesses? Experts press EU to instead boost defense spending

    April 29, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Back hard-hit businesses? Experts press EU to instead boost defense spending

    By: Tom Kington ROME — Defense experts are concerned that Europe's newfound commitment to joint defense spending may be cast aside as the European Union diverts cash into economies hammered by the coronavirus lockdown. The scenario was discussed in a webinar hosted by Italy's IAI think tank on April 8. And last week, Polish and German experts wrote of the risk that the fledgling European Defence Fund will be savagely cut. Then on April 27, eight experts issued an appeal to EU policymakers, arguing that rather than cutting defense funds to free up money to support hard-hit businesses, they should do the opposite and beef up defense spending. With so many high-tech jobs in the defense industry, “specific support for this sector will be needed to mitigate the economic crisis' effects and preserve the long-term future of Europe,” wrote the experts, who hail from Spain, Italy, the U.K., France and Lithuania. According to the letter, the EU plans to pack its 2021-2027 budget with measures to limit a recession some economists believe will follow the pandemic. Economists have also warned such a recession would dwarf the fallout from the 2008 financial crisis. “Undoubtedly it will focus on critical sectors such as health or energy. We believe that the defence sector should be included in such critical sectors and that a revised version of the [budget] should be the opportunity to reassert a truly ambitious budget for the European Defence Fund,” the experts wrote. Apart from shoring up defense jobs, feeding the European Defence Fund would help defend the EU as threats grow, they wrote. “Indeed, COVID-19 will not stop or mitigate the ongoing worsening of the international security environment threatening European security and interests. On the contrary, it is likely to make the world more unstable and more insecure,” they added. Defense spending had been slashed after 2008, the experts said, and faces a similar fate now, just as “Europe is trying to develop next-generation fighter aircraft, main battle tanks, frigates and other capabilities such as unmanned systems crucial for its military and technological edge.” Cutting budgets would not only increase Europe's dependency on “third states” but would “significantly hinder the credibility of European nations as military partners, notably within NATO,” they added. Prior to the spread of coronavirus, pressure had grown inside the EU to halve the €13 billion (U.S. $14 billion) planned for the European Defence Fund during 2021-2027. Now, the EU should halt any plans to cut the fund and instead increase it, the experts wrote. “As Europe gradually emerges from the pandemic, there [cannot be a] secure ‘new normal' without a solid European defence,” they concluded. The letter's release coincided with a report from the Stockholm International Peace Research Institute that found total global military spending rose 3.6 percent in 2019 to $1.917 trillion — marking the largest annual growth in spending since 2010. The think tank report also found that U.S. spending grew by 5.3 percent to a total of $732 billion in 2019, at 38 percent of the global total. The increase alone in U.S. spending was roughly equal to the entire budget of Germany. The European country's military spending rose by 10 percent last year to $49.3 billion, which the think tank said was the largest increase in spending among the top 15 military spenders in 2019. https://www.defensenews.com/global/europe/2020/04/27/back-hard-hit-businesses-experts-press-eu-to-instead-boost-defense-spending/

  • Will commercial and military launch programs ever be truly complementary?

    April 29, 2020 | International, Aerospace

    Will commercial and military launch programs ever be truly complementary?

    By: Kirk Pysher In a few months, the U.S. Air Force will choose two of the four competing space companies to provide five years of launches in the National Security Space Launch (NSSL) program. One of the core objectives for this program is to increase affordability by leveraging the technologies and business models of the commercial launch industry. Is that a realistic expectation given the current commercial space market and historical precedents? Historically, the commercial launch market has seen significant variability. Launches of commercial communication satellite constellations began in the early 1970s with NASA serving as the launch provider. New launch providers began to emerge from the commercial world after the Commercial Space Launch Act of 1984 allowed the private sector to provide launch services. We then witnessed a remarkable growth in commercial space launches in the 1990s that peaked just before the turn of the century. Then, until about 2014, the commercial launch market stabilized at 20-25 commercial geostationary orbit satellites per year that were split essentially between three global launch suppliers. Since then, new entrants into the commercial launch market and pricing pressure from terrestrial-based communication systems have significantly impacted the viability of the commercial launch market, reducing profit margins and returns on investment across the board. The expected 20-25 commercial GEO missions is now in the range of 10-15 launches per year and is expected to remain at that level beyond the NSSL five-year period of performance. With new entrants into the commercial launch market, that 40-50 percent reduction in annual launch opportunities will now be competed among seven to eight global launch providers, putting further pressure on the viability of those launchers. Additionally, commercial launch revenue is also expected to decrease over that period by as much as 30 percent as satellite operators look to reduce their launch cost through shared launch, smaller spacecraft and reduced launch pricing. Given the projected commercial launch market and additional competition from new entrants, launch service providers will have difficultly building and maintaining viable commercial launch business plans, let alone having commercial launch-driven capital to invest in new technology. History has proven that no commercial launch service provider can succeed without having an anchor government customer. The commercial launch market simply has not been able to provide the stable, long-term demand needed to maintain affordable pricing, innovation and factory throughput for the Air Force to benefit from. History has also demonstrated that it is the Air Force with NSSL since 2003 that has provided the launch service providers with a stable number of launches. The defense and commercial launch markets have a fundamental difference. The former focuses strictly on satisfying national security mission requirements in space — needs that are driven by risk, strategy and geopolitical events regardless of vulnerabilities in commercial markets. The defense market began in the late 1950s with industry designing, developing and building launch vehicles for the U.S. government to place critical national security satellites into orbit. Early on, we saw a large number of launches in the beginning — peaking at more than 40 in 1966 — before activity levels decreased to level out by 1980. After more than 400 launches of defense-related satellites, the defense launch market finally settled into an average eight launches annually, whereas the commercial launch market is strictly tied to the ability of global satellite operators to close business plans and obtain institutional and/or private funding on new and replacement satellites. The global COVID-19 pandemic is a stark reminder of the vulnerability of all commercial markets. Airlines, aircraft manufacturers and commercial space companies are needing to seek tens of billions of dollars in government assistance; and private commercial space investors are also reassessing their risk postures, as is demonstrated by the recent OneWeb bankruptcy filing. Given the projected decline in commercial launch along with the historical precedents, there would be significant risk for the Air Force to expect to leverage benefit from commercial launch. In fact, I believe history has demonstrated that it is commercial launch that is able to leverage the benefits derived from the steady cadence of defense and civil government launches. The Air Force, in its role as anchor customer, needs to clearly understand commercial market dependencies and business cases of its key providers. With that understanding, the Air Force will mitigate any risk of critical national security missions being dependent on a finicky and fluctuating commercial market. Kirk Pysher is an aerospace executive with more than 20 years in the commercial launch market, serving most recently as the president of International Launch Services until October 2019. https://www.defensenews.com/opinion/commentary/2020/04/28/will-commercial-and-military-launch-programs-ever-be-truly-complementary/

  • Army tweaks new goggles to scan for fevers

    April 29, 2020 | International, Security

    Army tweaks new goggles to scan for fevers

    Kyle Rempfer Researchers made adjustments to the digital thermal sensors on their Integrated Visual Augmentation System, or IVAS goggles, so the devices can now detect a fever, service officials said this week. A version of the IVAS goggles are now being used at Fort Benning, Georgia, on hundreds of soldiers arriving each day to train at the post, which hosts basic combat training, Airborne School and Ranger School. Five seconds was all it took for the goggles to detect the forehead and inner eye temperature of troops as they filed in through a processing center. The temperature of a soldier is registered through the goggle-wearer's heads-up display. Those who registered a fever were moved to a medical station for further evaluation. The goggle screening system cleared a group of about 300 soldiers in roughly 30 minutes, according to the Army. The process could also be more sanitary than traditional screening measures, which require closer contact between medical personnel and patients. “We've always planned for an agile software system and a digital platform that can be upgraded and adapted to use against emerging threats in the future. No one anticipated the next threat to emerge would be a virus, but that's the enemy we face today,” said Tom Bowman, director of the IVAS Science and Technology Special Project Office, who helped orchestrate the thermal tweaks to the devices. However, even though fevers are a known symptom of coronavirus, it's far from an absolute predictor. Up to 25 percent of people with the virus may never show symptoms, Centers for Disease Control director Dr. Robert Redfield has previously warned publicly, meaning symptoms could be a less effective gauge of troop health than originally hoped. IVAS goggles — which combine night vision, a rifle-linked targeting scope and navigational markers within a soldier's field of view — are still undergoing field tests, including one at Fort Pickett, in Virginia, in late October and early November. The version of the goggles used to screen troops at Fort Benning are an earlier iteration of “non-ruggedized” goggles. They can't be used outdoors, instead requiring a stable room temperature so the goggles can be accurately calibrated. Soldiers from 1st Battalion, 29th Infantry Regiment, an instructional unit for the Army Infantry School, were trained to use the devices to scan others. “That's the genius of this system; we can use this technology today to fight the virus, even as we shape it into the combat system our soldiers need tomorrow. This shows the extensibility of the IVAS technology and the system,” said Brig. Gen. Tony Potts, who directs the modernization of infantry equipment. IVAS goggles are the signature technology coming out of the Army's Soldier Lethality Cross Functional Team. The devices are designed in partnership with Microsoft using the company's HoloLens. Brig. Gen. Dave Hodne, the Army's chief of infantry who has a major role in testing the new technology, told reporters on April 17 that the Army still plans to field the devices in the final quarter of fiscal year 2021, even if a second wave of coronavirus hits during the fall testing period. “It would come at a cost of a two-week isolation period in advance of beginning the test,” said Hodne, adding that students trying to vie for a Ranger tab at the moment are already doing two-week isolation periods. “We've got 8,000 infantry trainees on Sand Hill who are executing a 22-week one-station unit training, you got an Airborne class that just graduated on Wednesday jumping out of airplanes,” Honde said. “The Army has frameworks for operating in biological hazards. It just requires us to make adjustments.” https://www.armytimes.com/news/your-army/2020/04/28/army-tweaks-new-goggles-to-scan-for-fevers/

  • Lockheed Martin to integrate Project Blackjack satellites

    April 28, 2020 | International, Aerospace, C4ISR

    Lockheed Martin to integrate Project Blackjack satellites

    Nathan Strout Lockheed Martin will perform the first phase of satellite integration on Project Blackjack for the Defense Advanced Research Projects Agency, the company announced April 24. With Project Blackjack, DARPA hopes to demonstrate the value of a proliferated constellation of low earth orbit satellites for the Department of Defense. And while Project Blackjack is expected to consist of just about 20 satellites, the lessons learned will feed into a constellation of hundreds. From early on, the Space Development Agency has said that it planned to build off of the advances made with Project Blackjack for its own proliferated constellation, which will perform tasks ranging from beyond-line-of-sight targeting to tracking hypersonic weapons. The SDA's current plan is to put 20 satellites on orbit in the summer of 2022, adding more and more in two year cycles until the agency's constellation includes hundreds of satellites. Under the $5.8 million contract, Lockheed Martin will define and manage interfaces between the bus, payload and Pit Boss, a system that will be able to process data collected by the satellites in space and disseminate that information to users on Earth without any human input. BAE Systems, SEAKR Engineering, Inc and Scientific Systems Company Incorporated were each awarded contracts in 2019 to design Pit Boss. Lockheed Martin will also perform testbed validation of vehicle interfaces. “Lockheed Martin has built and integrated a variety of payload types and sizes for every type of mission and we bring all of that experience to the Blackjack program,” said Sarah Reeves, vice president of missile defense programs at Lockheed Martin. “This is an exciting new approach to plug-n-play design for LEO and we are up for the challenge.” https://www.c4isrnet.com/battlefield-tech/space/2020/04/27/lockheed-martin-to-integrate-project-blackjack-satellites/

  • Global defense spending sees biggest spike in a decade

    April 28, 2020 | International, Aerospace, Naval, Land, C4ISR

    Global defense spending sees biggest spike in a decade

    By: Aaron Mehta WASHINGTON — Global defense spending hit $1.917 trillion in 2019, a 3.6 percent increase over previous year figures and the largest increase in one year since 2010, according to the annual report by the Stockholm International Peace Research Institute. The United States remains the world's largest defense spender in 2019, with its $732 billion representing 38 percent of global military spending, SIPRI has reported. That was followed by China ($261 billion, at 14 percent of global total), India ($71.1 billion, at 3.7 percent), Russia ($65.1 billion, at 3.4 percent) and Saudi Arabia ($61.9 billion, at 3.2 percent). All told, the top five nations accounted for 62 percent of overall military spending. “Global military expenditure was 7.2 percent higher in 2019 than it was in 2010, showing a trend that military spending growth has accelerated in recent years,” SIPRI's Nan Tian said in a statement. “This is the highest level of spending since the 2008 global financial crisis and probably represents a peak in expenditure.” Large year-over-year increases were seen in China (5.1 percent), India (6.8 percent), Russia (4.5 percent), Germany (10 percent) and South Korea (7.5 percent). Regionally, military spending increased in Europe by 5 percent, Asia and Oceania by 4.8 percent, the Americas by 4.7 percent, and Africa by 1.5 percent. Combined military spending by the 29 NATO member states was $1.035 trillion in 2019. SIPRI is widely considered to be the authority on military expenditures and exports, having gathered such data for decades. Other key developments, as noted by the researchers: Together, the top 15 countries spent $1.553 trillion, 81 percent of global military spending. All but three countries in the top 15 had higher military expenditures in 2019 than in 2010, the exceptions being the U.S. (15 percent drop), the U.K. (15 percent drop) and Italy (11 percent drop.) Total military expenditures of the 11 countries in the Middle East for which data is available decreased by 7.5 percent to $147 billion, driven in part by an estimated 16 percent drop from Saudi Arabia. That overall percentage also decreased in 2018. SIPRI was unable to calculate totals from Qatar, Syria, the United Arab Emirates and Yemen. Military spending in South America was relatively unchanged from the previous year, coming in at $52.8 billion. Fifty-one percent of that spending, $26.9 billion, came from Brazil. Combined military expenditures from Africa grew by 1.5 percent to an estimated $41.2 billion in 2019, the first time that region saw a spending increase in five years. That includes plus-ups in Burkina Faso (22 percent), Cameroon (1.4 percent), Mali (3.6 percent), the Central African Republic (8.7 percent), the Democratic Republic of the Congo (16 percent) and Uganda (52 percent). Of the 149 countries SIPRI studied, 10 allocated 4 percent or more of their gross domestic product to the military, which the group defines as the “military burden.” Thirteen countries had a military burden of 3 to 3.9 percent of GDP; 24 had a military burden of 2 to 2.9 percent; 65 had a military burden of 1 to 1.9 percent; and 34 allocated less than 1 percent of their GDP to the military. Three countries had no military expenditures in 2019: Costa Rica, Iceland and Panama. https://www.defensenews.com/global/2020/04/27/global-defense-spending-sees-biggest-spike-in-a-decade/

  • Storm clouds await Pentagon’s request for defense industry cash injection

    April 28, 2020 | International, Aerospace, Naval, Land, C4ISR

    Storm clouds await Pentagon’s request for defense industry cash injection

    By: Joe Gould WASHINGTON ― Though the Pentagon is hunting for billions of dollars in a future package to combat the coronavirus pandemic, it looks like the next massive relief bill will be swamped in a partisan fight. The Pentagon announced it's seeking the funds to prop up the military's network of suppliers following $3 billion in new “progress payments" to increase cash flow to primary contractors and more vulnerable, smaller subcontractors. The details have yet to be disclosed as the Defense Department works through them with the White House budget office. But last week, Senate Majority Leader Mitch McConnell, R-Ky., said he wants to “push the pause button” on the next aid package and, because Democrats aim to center it on bailouts for states hit hard by the pandemic, “move “cautiously.” “You've seen the talk from both sides about acting, but my goal from the beginning of this, given the extraordinary numbers that we're racking up to the national debt, is that we need to be as cautious as we can be,” McConnell told reporters on April 21. The Senate will reconvene in full on May 4 to work on coronavirus aid legislation, McConnell said Monday. It would mark the first time the chamber has been back in full since late March. The prospects for a speedy compromise looked dim when House Speaker Nancy Pelosi, D-Calif., set herself at odds with McConnell last week, saying, “There will not be a bill without state and local” aid. Senate Minority Leader Chuck Schumer, D-N.Y., and other congressional Democrats have added pressure on McConnell by pillorying the majority leader's suggestion that states declare bankruptcy. “Republican Senators: Raise your hand if you think your state should go bankrupt,” Schumer said in a tweet. McConnell's negotiating stance comes as the Congressional Budget Office projected Friday that the federal budget deficit would quadruple to $3.7 trillion, driven by the coronavirus pandemic and a government spending spree on testing, health care, and aid to businesses and households. According to the report, the 2020 budget deficit will explode after Congress passed and President Donald Trump signed four coronavirus aid bills that promise to pile more than $2 trillion onto the $24.6 trillion national debt in the remaining six months of the current fiscal year. Meanwhile, defense hawks are warm to a defense spending boost. Senate Commerce Committee Chairman Roger Wicker, R-Miss., has voiced support for an additional cash infusion for the defense industry. “The federal government can play a vital role in keeping military suppliers afloat,” Wicker, a senior member of the Senate Armed Services Committee, said in his weekly newsletter to supporters. “Already the Department of Defense has announced it is spending $3 billion to reimburse contractors affected by work delays and breaks in the supply chain. “As Congress considers new relief measures, I will work to include targeted funding to ensure that suppliers get the stable cash flow and contracts they need to endure this crisis. These awards should go toward projects the military has already identified as priorities and should not break the bank." Also last week, Sen. Tom Cotton, R-Ark., introduced legislation last week that calls for $43 billion for military infrastructure and weapons as part of a larger effort to confront China in the Indo-Pacific region. That bill also calls for $11 billion to mitigate pandemic-related cost overruns on weapons programs and $3.3 billion to mitigate COVID-19 impacts to the defense-industrial base. But Cotton's proposal is also loaded with new weapons purchases that would prove a boon to defense firms, albeit at a slower pace than a direct cash infusion. There's an added General Dynamics/Huntington Ingalls Industries-built Virginia-class submarine; more Lockheed Martin-built F-35A jets; Boeing-built F-15EX fighter aircraft; a battery for the Terminal High Altitude Area Defense air defense system; and anti-ship/strike weapons. Cotton's bill follows a $6.1 billion China deterrence package from the influential ranking member of the House Armed Services Committee, Rep. Mac Thornberry, R-Texas. That bill would fund an Indo-Pacific Deterrence Initiative, also favored in principal by HASC Chairman Adam Smith, D-Wash. Observers predicted the added funding might find a way through any deadlock on a stimulus bill. “We don't foresee stand-alone adoption but do think elements of it could be spread across different spending bills,” analyst Roman Schweizer of the Cowen Group said of Cotton's bill in a note to investors. “With Congress in full-bore debt-spending mode, defense proponents might be able to bury this money in larger packages. The American Enterprise Institute's Mackenzie Eaglen proposed in a Defense News on Monday that the next package for the Pentagon should avoid submitting unfunded procurement priorities and also “focus on the health, safety and continuity of all the Pentagon's workforce.” “Democrats want another stimulus, ideally on ‘shovel ready' infrastructure jobs. DoD is absolutely going to need more help in some sort of bill to keep the defense supply chain from going to the unemployed lines, or worse, gobbled up by China,” Eaglen said in an email. “Most of defense stimulus is to prop up jobs and employment so I'd like to be optimistic and think Democrats would be very supportive.” Democratic leaders haven't yet signaled how they're predisposed toward added defense spending in a stimulus package. However, a House Democratic aide said that scenario would invite serious opposition from the progressive wing. Rep. Ro Khanna, D-Calif., a member of HASC and the House Progressive Caucus leadership team, previewed the messaging in this fight in a tweet on April 21 saying: “The Pentagon shouldn't get any more COVID relief money." “A single F-35 could pay for 2,200 ventilators. 1 nuclear warhead could pay for 17 million masks,” Khanna said, adding that the Pentagon budget dwarfs the combined budgets of the Centers for Disease Control and Prevention, the National Institutes of Health, and U.S. contributions to the World Health Organization. In the Senate, Sen. Bernie Sanders, I-Vt., “will strongly oppose no-strings-attached giveaways to the arms industry, as news reports seem to indicate are the Pentagon's likely request of Congress," said his spokesman, Keane Bhatt. "This is the time to put ordinary workers and small businesses first — not prioritize the profits of Lockheed Martin and Raytheon.” https://www.defensenews.com/congress/2020/04/27/storm-clouds-await-pentagons-request-for-defense-industry-cash/

  • What the Pentagon should (and should not) get in the next stimulus bill

    April 28, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    What the Pentagon should (and should not) get in the next stimulus bill

    By: Mackenzie Eaglen As Washington begins to draft another stimulus spending bill to combat coronavirus, the Pentagon needs a new plan to articulate its needs to lawmakers. Simply submitting unfunded lists whole cloth comes across as tone deaf and opportunistic. A better plan would be to focus on the health, safety and continuity of all the Pentagon's workforce: uniformed, civilian and contractor. Capitol Hill is (virtually) busy as ever these days, completing another injection of funds into the Coronavirus Aid, Relief and Economic Security Act last week. Congress and the White House will now begin formulating a phase 4 bill. President Donald Trump and House Speaker Nancy Pelosi have indicated they would both like to see domestic infrastructure spending inside. Negotiations are just beginning, but this bill will open the spending aperture compared to the CARES Act. For national defense, this legislation must focus on taking care of people and protecting jobs. Even as the U.S. military mobilizes to support the fight against COVID-19, the disease is hitting the Defense Department and its workforce much the same as the rest of America. The first order of business is for the Pentagon to ensure health and wellness for service members, their families, civilians and contractors by encouraging safe and flexible work policies. The Pentagon will need additional funding to pay for COVID-19 support deployments, mitigate the effects of stop-movement orders, increase the availability of personal protective equipment and sanitation, and expand its IT infrastructure for telework. Second, Congress and the Pentagon should provide financial assistance to the thousands of small businesses, subcontractors and suppliers to defense contractors building weapons, conducting maintenance or developing classified software. The defense-industrial base is built for maximum efficiency, not resiliency. Even seemingly minor production pauses of weeks are combining with broader quarantine restrictions to wreak havoc on program schedules. While the Pentagon has many tools at its disposal — accelerating awards and progress payments as well as lifting contracting restrictions — the acquisition team simply cannot respond to this crisis without more resources available. Absent additional liquidity, contractors face the impossible choice between letting workers go or facing the reality that they will have no jobs to return to. 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 Department of Defense report on industrial base fragility. These small firms providing needed materials, labor and technology to companies designated as “essential” are struggling with COVID like everyone else. Their employees are either afraid to come to work out of fear of contraction and contagion, or they're sick with the virus. The vicious cycle — where people want to work but can't — means schedules slip. If there is no work, there is no revenue, which means layoffs. Already around the country, a major defense contractor had to shut down two plants; a shipbuilder is struggling to get employees to show up; another defense firm has laid off employees; and still others can't get to work because classified spaces are off limits. To ensure workforces remain intact, lawmakers need to move quickly to pay contractors who cannot work because of COVID-19 effects, as delays are now averaging three months. Fixing this is as simple as measuring the impact of COVID-19 on contracts and ensuring a reasonable payment for that delay, which will be billions of dollars, according to acquisition czar Ellen Lord. It's no different than legal remedies for “acts of God.” Also, the DoD can consider a subset of its unfunded priorities list to get projects on contract that are executable very quickly and inject liquidity into the defense contractor workforce. These unfunded priorities run the gamut, from weapons production to software development. Similarly, there are always “incremental” projects that can be accelerated, like facilities sustainment and depot maintenance. Using unfunded priorities to inject liquidity into the defense-industrial base isn't the ideal tool, but all options must be brought to bear to deal with this crisis. The majority of defense dollars allocated to the big prime contractors go back out the door to their suppliers and vendors — many of which are small businesses. While many of the easiest financial levers to pull involve getting contracts to primes, Congress and the Pentagon need to emphasize that this money — whether it be new contracts, accelerated contracts or increased progress payments — must be passed on to major suppliers and subcontractors. If the behemoths of defense industry don't share the wealth and take care of their supply chain, there won't be more money, contracts or authority for additional progress payments from Congress. Contractor leadership must take care of workers — including those of its vendors. Lastly, Congress can provide Defense Production Act Title III funding to directly target injections of cash to the emergent needs of small businesses and subcontractors, including many up-and-coming innovative firms and single-source suppliers. So far, DPA funding has been focused on contracting for additional personal protective equipment, but the DPA was equally built to protect the defense-industrial base. The industrial base was already hurt by the Budget Control Act, and it's been busy rebuilding under Trump, only to get whacked again by COVID-19. Employees need to know the work is there, their safety is a priority and their jobs are safe. If the Pentagon and primes don't take care of their suppliers and subcontractors, the defense-industrial base will contract again, losing crucial skills and talents permanently — and possibly seeing those companies bought up by China. https://www.defensenews.com/opinion/commentary/2020/04/27/what-the-pentagon-should-and-should-not-get-in-the-next-stimulus-bill/

  • Contract Awards by US Department of Defense - April 27, 2020

    April 28, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - April 27, 2020

    ARMY H&L Contracting LLC, Bay Shore, New York, was awarded a $113,747,342 firm-fixed-price contract for reduction of storm damages from coastal erosion and flooding through storm protective reinforced dune, beach berm and dune construction. Bids were solicited via the internet with eight received. Work will be performed in Rockaway, New York, with an estimated completion date of April 26, 2024. Fiscal 2014 civil construction funds in the amount of $113,747,342 were obligated at the time of the award. U.S. Army Corps of Engineers, New York, New York, is the contracting activity (W912DS-20-C-0015). Capco LLC,* Grand Junction, Colorado, was awarded a $33,600,571 firm-fixed-price contract for 40 mm M320 and 40 mm M320A1 grenade launchers. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of April 26, 2025. U.S. Army Contracting Command, New Jersey, is the contracting activity (W15QKN-20-F-0377). Columbia Helicopters, Aurora, Oregon, was awarded a $9,900,000 firm-fixed-price contract to procure overhaul/repair of helicopter rotor heads. Bids were solicited via the internet with two received. Work locations and funding will be determined with each order, with an estimated completion date of March 30, 2023. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-20-F-0370). Columbia Helicopters, Aurora, Oregon, was awarded an $8,150,000 firm-fixed-price contract to procure overhaul/repair of helicopter rotor heads. Bids were solicited via the internet with two received. Work locations and funding will be determined with each order, with an estimated completion date of Nov. 30, 2022. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-20-F-0369). Applied Aquatic Management Inc.,* Bartow, Florida, was awarded a $7,000,000 firm-fixed-price contract to provide vegetation management, environmental restoration and protection, vegetation/geographic information systems mapping and aerial photographs on various projects and properties within boundaries of the South Atlantic Division, U.S. Army Corps of Engineers. Bids were solicited via the internet with seven received. Work locations and funding will be determined with each order, with an estimated completion date of April 26, 2025. U.S. Army Corps of Engineers, Jacksonville, Florida, is the contracting activity (W912EP-20-D-0003). NAVY Environmental Chemical Corp., Burlingame, California, is awarded a $58,398,023 modification under firm-fixed-price task order (N62470-19-F-9101) to allot the second increment, which provides for the construction of the master time clocks and operations facility at the Naval Observatory. Work will be performed in Washington, District of Columbia, and provides for the construction of new master time clocks and an operations facility. Work will include construction of Building 51, demolition of Building 82, upgrade of Building 83 electrical components, renovation of Building 78, rehabilitation of existing Building 6 and 7 foundations, walls and piers, Pepco 13.2kV (electric power company name and service voltage) work inside and outside of the fence line at the Naval Observatory fence line to include Verizon fiber work. Work is expected to be complete by September 2024. The total contract amount after allotting these funds will be $90,696,992. Fiscal 2020 military construction, (Navy) contract funds in the amount of $58,393,023 are obligated on this award and will not expire at the end of the current fiscal year. The Naval Facilities Engineering Command, Washington, Washington, District of Columbia, is the contracting activity (N62470-18-D-8025). Vigor Marine LLC, Portland, Oregon, is awarded a $20,880,790 firm, fixed-price contract (N32205-20-C-4005) for an 87-calendar day shipyard availability for the overhaul dry-docking availability of the USNS Guadalupe (T-AO 200). The $20,880,790 consists of the amounts listed in the following areas: Category “A” work item costs, additional government requirement, other direct costs and the general and administrative costs. Work will be performed in Portland, Oregon. Work will include the furnishing of general services, shipboard access, clean and gas free tank voids and cofferdams, preservation of aft ballast and cargo tanks as well as the flight deck, overhaul repairs to main engine turbochargers and HP air compressor, davit arms and falls removal, cleaning and painting of hull freeboard and underwater hull, steel replacement and underway replenishment systems repairs. Work is expected to be complete by July 2020. The contract includes options which, if exercised, would bring the total contract value to $22,186,509. Funds will be obligated on April 24, 2020. Contract funds in the amount of $20,880,790, excluding options, are obligated for fiscal 2020 using working capital (Navy) funds. This contract was competitively procured, with proposals solicited via the Federal Business Opportunities website and one offer was received. Military Sealift Command, Norfolk, Virginia, is the contracting activity. (Awarded April 24, 2020) Huntington Ingalls Inc., Pascagoula, Mississippi, is awarded a $10,100,000 cost-plus-award-fee delivery order against previously awarded basic ordering agreement N00024-16-G-2303 to provide program management, advanced planning, engineering, design, material procurement/kitting, liaison, scheduling, participation in planning conferences and design reviews in support of the post shakedown availability for DDG-119 (guided missile destroyers). Work will be performed in Pascagoula, Mississippi (75%); and Norfolk, Virginia (25%), and is expected to be complete by August 2021. Fiscal 2020 shipbuilding and conversion (Navy) funding in the amount of $10,100,000 will be obligated at time of delivery order and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S. Code 2304(c)(1), with only one responsible source and no other supplies or services will satisfy agency requirements. The Supervisor of Shipbuilding, Conversion and Repair Gulf Coast, Pascagoula, Mississippi, is the contracting activity. (Awarded April 24, 2020) PrimeTech International Inc.,* North Kansas City, Missouri, is awarded a $9,322,851 firm-fixed-price, cost reimbursable General Services Administration (GSA) task order for integrated logistics distribution support. Work will be performed in Albany, Georgia. Work is expected to be complete by May 2021. If all options are exercised, work will continue through November 2021. This contract includes options which, if exercised, would bring the cumulative value of this contract to $14,355,112. Fiscal 2020 operations and maintenance (Marine Corps) funds in the amount of $9,322,851 will be obligated at the time of award and will expire at the end of the current fiscal year. This contract was competitively procured as a small business set-aside via the GSA eBuy website, with seven proposals received. The Marine Corps Logistics Command, Albany, Georgia, is the contracting activity (M67004-20-F-4101). Bell Boeing Joint Program Office, Amarillo, Texas, is awarded an $8,126,000 modification (16) to a cost-plus-fixed-fee order (0073) against a previously issued basic ordering agreement (N00019-12-G-0006). This modification adds non-recurring baseline performance rig test efforts in support of the Improved Inlet Solution/Engine Air Particle Separator preliminary design on MV-22 and CV-22 Tiltrotor aircraft. Work will be performed in Indianapolis, Indiana (57%); Fort Worth, Texas (34%); Ridley Park, Pennsylvania (8%); and Jackson, Mississippi (1%), and is expected to be complete by April 2021. Fiscal 2020 research, development, test and evaluation (Air Force) funds in the amount of $1,862,344; and fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $1,241,562 will be obligated at time of award, none of which will expire at the end of the current fiscal year. Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. DEFENSE LOGISTICS AGENCY Imagine Milling Technologies LLC, Fullerton, California, has been awarded a maximum $40,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for medical equipment and accessories for the Defense Logistics Agency electronic catalog. This was a competitive acquisition with 115 responses received. This is a five-year contract with no option periods. Location of performance is California, with an April 26, 2025, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-20-D-0035). DEFENSE INFORMATION SYSTEMS AGENCY AT&T Corp., Columbia, Maryland, was awarded a firm-fixed-price contract modification to exercise Option Year Four for the Northstar Long-Haul Telecommunications Network and associated transmission circuits for an ultra-high frequency/line of sight communications system network. The face value of this action is $12,312,149, funded by fiscal 2020 operations and maintenance funds. The total cumulative face value of the contract is $68,464,912. The place of performance will be at various sites geographically dispersed across the continental U.S. The period of performance for this action is May 1, 2020, to April 30, 2021. The Defense Information Technology Contracting Organization, Scott Air Force Base, Illinois, is the contracting activity (HC1013-16-C-0001, P00014). AIR FORCE Boeing Aerospace Operations Inc., St. Louis, Missouri, has been awarded an $8,733,007 firm-fixed-price task order FA8134-20-F-5701 against basic contract FA8106-16-D-0004 for crew rest modification efforts on the Air Force C-32 fleet. Work will be performed at Joint Base Andrews, Maryland, and is expected to be completed by Feb. 28, 2022. Fiscal 2019 and 2020 aircraft procurement funds in the amount of $8,733,007 will be obligated at the time of award. Air Force Life Cycle Management Center, Tinker Air Force Base, Oklahoma, is the contracting activity. Sierra Nevada Corp., Sparks, Nevada, has been awarded an $8,161,843 cost-plus-fixed-fee contract for an Intent-Defined Adaptive Software (IDAS) Prototype. This contract provides for a software engineering performance baseline for measuring IDAS improvement over the current software by attempting challenges with existing tools and techniques and measuring the learning curve required for traditional developers to adopt emerging IDAS capabilities. Work will be performed in Herndon, Virginia, and is expected to be completed by April 27, 2024. This award is the result of a competitive acquisition and 20 offers were received. Fiscal 2019 research, development, test and evaluation funds in the amount of $737,596 are being obligated at time of award. Air Force Research Laboratory, Rome, New York, is the contracting activity (FA8750-20-C-0518). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2167014/source/GovDelivery/

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