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Tony Osborne The UK declared the F-35 operational even though the fleet was suffering from availability, infrastructure, logistics and security issues, auditors have revealed. The UK National Audit Office (NAO) found that the December 2018 initial operating capability (IOC) from land bases was granted with 67 exceptions, with almost one-third of those still yet to be resolved more than a year later. It is not clear on how many criteria IOC (Land) was judged. In its report studying how new capabilities are delivered into front-line operations, the NAO reported that in the run-up to the milestone there had been delays in the provision of synthetic training facilities. This impacted the availability of pilots and maintainers, while operational availability of the aircraft “hampered the ability to deliver training.” The report appears to confirm the reasons behind a 34-day flying break by the UK-based fleet in the late summer of 2018 reported by Aerospace DAILY. Plans to use simulators for training have been frustrated by “technical difficulties and delays in security vetting.” The NAO said the UK Ministry of Defense is able to use exemptions when bringing a new capability into service. Capabilities that do not meet specifications but are deemed good enough would be given an exemption. The NAO also says that IOC acceptance criteria for the F-35 was not finalized “until several years” after business case approval in the second half of 2017. Exemptions arose from “not being able to demonstrate deployability through a planned exercise,” because of aircraft availability, a reliance on contractors for mission support because of a lack of trained Royal Air Force personnel, and a lack of access to mission support training facilities in the U.S. Another challenge was an inability to program aircraft with UK mission data independently of the U.S. This has since been addressed with the opening of the Australian, Canadian and United Kingdom Reprogramming Laboratory (ACURL) at Eglin AFB, Florida, which was declared operational in February. The NAO notes that some 20 of the exemptions had still not been resolved as of last month. But the NAO says the Royal Air Force and Royal Navy have made progress in the areas of training personnel and logistics. The UK now has 15 F-35Bs based in the country flying with front-line unit 617 Sqdn. and with 207 Sqdn, a training unit. Since their arrival to the UK, the aircraft have been deployed to Cyprus and flown operational missions in the Middle East. They also recently took part in a Tier 1 Red Flag exercise with Five Eyes partners Australia and the U.S. A Lockheed Martin spokesman said that while it was for the customer to answer questions concerning IOC, “the F-35 program globally continues to mature, and Lockheed Martin has made significant steps in terms of reliability and aircraft availability, with the global fleet averaging greater than 65% mission-capable rates and operational units consistently performing near 75%.” Questions to the UK Ministry of Defense had not been answered at the time of publication. https://aviationweek.com/defense-space/budget-policy-operations/uk-declared-f-35-operational-despite-issues-auditors-say

Reston, Va. March, 19, 2020 -- (BUSINESS WIRE)-- Science Applications International Corp. (NYSE: SAIC) won the Federal Supply Group - 80 Tailored Logistics Support Program contract from the Defense Logistics Agency. The single-award, indefinite-delivery, indefinite-quantity contract has a ceiling value of $950 million. “We're proud to extend our partnership with the DLA in supporting our warfighters around the world,” said Jim Scanlon, executive vice president and general manager of SAIC's Defense Systems Group. “We're looking forward to bringing our expertise and technical solutions, such as our Integrated Logistics Toolkit and hazardous materials management, to bear to help improve service delivery to the Department of Defense.” On this contract, SAIC will take over supply chain management for the FSG 80 commodity, which includes paints; preservation and sealing compounds; and adhesives. Many of these items have short shelf lives and require temperature-controlled storage. The company will provide services including, but not limited to, procurement, demand planning, inventory and distribution management, shelf-life management, and direct delivery of the commodity to more than 5,000 DOD locations. SAIC's Integrated Logistics Tool kit is a suite of open-source software applications that optimizes performance on large, supply chain management programs. It automates collection of requirements, forecasting demand, and inventory and delivery management and optimization. The toolkit can also identify qualified sources of supply and generate customized reports. It was developed based on business processes and best-in-class methodologies obtained by SAIC's more than 30 years' experience in supply chain management. The contract has a three-year base period of performance with two, two-year options. About SAIC SAIC® is a premier technology integrator solving our nation's most complex modernization and readiness challenges. Our robust portfolio of offerings across the defense, space, civilian, and intelligence markets includes high-end solutions in engineering, IT, and mission solutions. Using our expertise and understanding of existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to deliver innovative, effective, and efficient solutions. We are 24,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has pro forma annual revenues of approximately $7.1 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom. Forward-Looking Statements Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC's website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC's expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others. View source version on businesswire.com: https://www.businesswire.com/news/home/20200319005042/en/ Lauren Presti 703-676-8982 lauren.a.presti@saic.com Source: Science Applications International Corp. View source version on SAIC: https://investors.saic.com/press-releases/press-release-details/2020/SAIC-Wins-950-Million-Defense-Logistics-Agency-FSG-80-Contract/default.aspx

DAVID PUGLIESE, OTTAWA CITIZEN Construction of the Royal Canadian Navy's new Arctic and Offshore Patrol Ships and maintenance of its frigates has been halted because of the novel coronavirus. “We are immediately suspending industrial activities at Halifax Shipyard, Marine Fabricators, and Woodside Industries related to the AOPS construction program and the Halifax-class In-Service maintenance program,” wrote Irving Shipbuilding president Kevin McCoy. “The decision became necessary given the high density of the employee population in certain work areas, high absenteeism, and reduced critical vendor support in materials and services.” Irving will review its decision on a week-by-week basis to assess the latest information about COVID-19, McCoy added. https://ottawacitizen.com/news/national/defence-watch/construction-of-new-arctic-ships-maintenance-of-frigates-halted-because-of-covid-19

NAVY Barber-Nichols Inc., Arvada, Colorado (N66604-20-D-E001); Booz Allen Hamilton, McLean, Virginia (N66604-20-D-E002); L3 Technologies Inc., Northampton, Massachusetts (N66604-20-D-E003); Leidos Inc., Reston, Virginia (N66604-20-D-E004); Leonardo DRS Inc., Melbourne, Florida (N66604-20-D-E005); Lockheed Martin Sippican Inc., Marion, Massachusetts (N66604-20-D-E006); MIKEL Inc., Middletown, Rhode Island (N66604-20-D-E007); Northrop Grumman Systems Corp., Annapolis, Maryland (N66604-20-D-E008); Progeny Systems Corp., Manassas, Virginia (N66604-20-D-E009); Foster-Miller Inc., doing business as QinetiQ-NA, Waltham, Massachusetts (N66604-20-D-E010); Raytheon Co., Keyport, Washington (N66604-20-D-E011); Rite-Solutions Inc., Pawcatuck, Connecticut (N66604-20-D-E012); Science Applications International Corp., Reston, Virginia (N66604-20-D-E013); Systems Engineering Associates Corp., Middletown, Rhode Island (N66604-20-D-E014); Sechan Electronics Inc., Lititz, Pennsylvania (N66604-20-D-E015); Sonalysts Inc., Waterford, Connecticut (N66604-20-D-E016); and Systems Planning and Analysis Inc., Alexandria, Virginia (N66604-20-D-E017), are being awarded a $73,730,343 indefinite-delivery/indefinite-quantity, multiple-award contract for the procurement of materials and services to design, develop, fabricate, test, install, document and deliver rapid prototype solutions in support of the Undersea Warfare/Undersea Defensive Family of Systems. Work will be performed at the contractors' sites, minimally at government locations and is expected to be completed by March 2023. For these base indefinite-quality/indefinite-delivery, three-year contracts, funding will not be obligated at time of award. A $2,500 minimum guarantee will be executed on each awardee's initial task order. This multiple-award contract was competitively procured with 17 acceptable offers received via the Federal Business Opportunities website. The Naval Undersea Warfare Center Division Newport, Newport, Rhode Island, is the contracting activity. Northrop Grumman Systems Corp., Orlando, Florida, is awarded a $48,235,113 single award, indefinite-delivery/indefinite-quantity contract (N65236-20-D-8012) with provisions for cost-plus, fixed-fee and firm-fixed-price task/delivery orders. This contract is for the procurement of Mobile User Objective System (MUOS) to legacy Ultra High Frequency (UHF) Satellite Communications Gateway Component systems and services. Work will be performed in Orlando, Florida, and is expected to be complete by March 2029. These systems support interoperability from tactical-to-tactical (point-to-point, point-to-group/net, group-to-net) satellite communications between MUOS and legacy UHF satellite communication users. In addition, the required services include Satellite Communication Gateway Component Suite B interface development, technical refresh enhancements, training, documentation updates, cybersecurity services, pre-installation test and checkout, implementation/installation and sustainment. Contract funds will not expire at the end of the current fiscal year. The contract includes a five-year ordering period, a two-year option period and one six-month option to extend services in accordance with Federal Acquisition Regulation 52.217-8. The option periods, if exercised, will bring the cumulative value of this contract to an estimated $65,214,634. Contract funds in the amount of $25,000 will be obligated at the time of award. This requirement was not competitively procured because it is a sole-source acquisition pursuant to the authority of 10 U.S. Code 2304(c)(1) with only one responsible source. Naval Information Warfare Center Atlantic, Charleston, South Carolina, is the contracting activity. Teledyne Defense Electronics LLC, doing business as Teledyne Microwave Solutions, Rancho Cordova, California, is awarded a $34,963,200 firm-fixed-price requirements contract for the repair of traveling wave tubes (model 10 kW) in support of the Advanced Electronic Guidance and Instrumentation System/Combat System. Work will be performed in Rancho Cordova, California, and is expected to be complete by March 2025. This contract includes a five-year base period with no options. Annual working capital funds (Navy) will be obligated as individual task orders as issued, and funds will not expire at the end of the current fiscal year. One company was solicited for this sole-source requirement pursuant to the authority set forth in 10 U.S. Code 2304 (c)(1), with one offer received. Naval Supply Systems Command Weapon Systems Support, Mechanicsburg, Pennsylvania, is the contracting activity (N00104-20-D-V001). Lockheed Martin Corp. Rotary and Mission Systems, Liverpool, New York, is awarded a $19,413,337 modification to previously awarded contract N00024-13-C-6292 to exercise and fund options for the production of Navy equipment. Work will be performed in Liverpool, New York (66%); Millersville, Maryland (33%); and Marion, Massachusetts (1%), and is expected to be complete by November 2021. Fiscal 2020 other procurement (Navy) funding in the amount of $19,413,337 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. CB Tech Services Inc.,* Honolulu, Hawaii (N32253-20-D-0006); Coastal Marine Services Inc.,* San Diego, California (N32253-20-D-0007); Sitta, Paige and Associates Inc.,* National City, California (N32253-20-D-0005); and Pacific Shipyards International,* Honolulu, Hawaii (N32253-20-D-0008), are awarded $13,000,000 for a multiple award, indefinite-delivery/indefinite-quantity contract with firm-fixed-price pricing for the procurement of interior decking commercial industrial services at Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility, Hawaii. Work will be performed in the state of Hawai'i and is expected to be completed by February 2025. The four contractors may compete for task orders under the terms and conditions of the awarded contracts. The maximum ceiling value for all four contracts is $13,000,000. No funding will be obligated at time of award. This contract was competitively procured with five offers received via the Federal Business Opportunities website. The Naval Sea Systems Command, Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility, Pearl Harbor, Hawaii, is the contracting activity. FLIR Systems Inc., North Billerica, Massachusetts, is awarded a $12,133,461 ceiling increase modification to previously awarded firm-fixed-price contract (N00164-18-D-JQ99) for non-warranty repairs, provision item ordering spares, product revisions, upgrades and production systems of the maritime mounted sensor. Work will be performed in North Billerica, Massachusetts, and is expected to be complete by February 2023. The contract will support multiple electro-optic sensor systems to include the following maritime forward-looking infrared, combatant craft forward looking infrared, shipboard infrared sensor systems, sea forward looking infrared. The electro-optic systems are utilized by the Navy, Coast Guard, Marine Corps and U.S. Special Operations Command to carry out assigned missions. These systems provide electro-optical surveillance capability allowing the user to operate in low-light conditions. This contract was awarded on a sole-source basis in accordance with the statutory authority of 10 U.S. Code 2304(c) (1) as implemented by Federal Acquisition Regulations 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $650,000 will be obligated at the time of award and will expire at the end of the current fiscal year. The Naval Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity. Colonna Shipyards Inc., Norfolk, Virginia, is awarded an $8,903,875 firm-fixed-price contract for an 80-day shipyard availability for the emergency dry-docking of Navy Ship Spearhead (T-EPF 1). Work will be performed in Norfolk, Virginia, and is expected to be complete by June 2020. This contract includes an 80-day base period and three options, which if exercised, would bring the cumulative value of this contract to $9,241,725. Working capital contract funds (Navy) in the amount of $8,903,875 are obligated for fiscal 2020 and will not expire at the end of the fiscal year. The Military Sealift Command, Norfolk, Virginia, is the contracting activity. Lockheed Martin Rotary and Mission Systems, Manassas, Virginia; and Lockheed Martin Rotary and Mission Systems, Syracuse, New York, is awarded an $8,759,811 cost-plus-incentive-fee modification to previously awarded contract N00024-09-C-6247 to exercise options for Integrated Submarine Imaging System (for submarine electronic warfare models AN/BLQ-10 and TI-18) kits and spares. Work will be performed in Manassas, Virginia (47%); Syracuse, New York (29%); Chantilly, Virginia (13%); Marion, Massachusetts (7%); and Newport, Rhode Island (4 %), and is expected to be completed by March 2023. Fiscal 2020 other procurement (Navy) funding in the amount of $8,759,811 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington Navy Yard, District of Columbia, is the contracting activity. (Awarded March 12, 2020) U.S. TRANSPORTATION COMMAND Construction Helicopters Inc., Howell, Michigan, has been awarded a task order modification, HTC711-18-F-R029/P00008, on contract HTC711-17-D-R016 in the amount of $33,995,543. This modification provides continued support of North Atlantic Treaty Organization Air Command-Afghanistan/Combined Security Transition Command. The services provide dedicated rotary wing air transportation to move passengers, cargo and human remains as well as perform casualty evacuation in support of the Afghan Air Force. Work will be performed in the government of Afghanistan. The option period of performance is from March 19, 2020, to March 18, 2021. Fiscal 2020 Afghanistan Security Force funds (Army) were obligated at award of the modification. This modification brings the total cumulative face value of the task order to $101,571,160, from $67,575,617. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. ARMY R&D Maintenance Services Inc.,* Tulsa, Oklahoma, was awarded a $15,989,749 cost-plus, firm-fixed-price contract for maintenance, repair, minor construction and operations of the Hartwell Lake and Dam project. Bids were solicited via the internet with four received. Work will be performed in Hartwell, Georgia, with an estimated completion date of Oct. 31, 2025. Fiscal 2020 civil investigation funds in the amount of $15,989,749 were obligated at the time of the award. U.S. Army Corps of Engineers, Savannah, Georgia, is the contracting activity (W912HN-20-C-5000). Navistar Defense, Melrose Park, Illinois, was awarded an $11,442,992 firm-fixed-price Foreign Military Sales (Iraq) contract for 6x6 and 4x4 general transport trucks, recovery vehicles, and spare parts. Bids were solicited via the internet with five received. Work will be performed in Springfield, Ohio; and Ooltewah, Tennessee, with an estimated completion date of Feb. 28, 2021. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity (W56HZV-20-F-0206). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2117069/source/GovDelivery/

By: Nathan Strout L3Harris is building a new platform that will help analysts in the military use artificial intelligence to identify objects in large imagery data sets. “In general, there's a big challenge with the amount of remote sensing data that's coming down, whether that's from space or airborne assets,” explained Will Rorrer, principal of business development for geospatial at L3Harris Technologies. “So there's lots of imagery and other data types coming down from above, so much so that it really can't be looked at in its entirety — certainly not exploited in its entirety — by traditional means (with) purely human analysts. And so things like counting objects in imagery, monitoring different places, that's where there's a natural adoption of machine learning type of techniques,” he continued. L3Harris officials declined to share who the end customer for their product will be or the exact value of their multimillion dollar contract, which was issued by the Air Force Life Cycle Management Center. It's no secret that the Department of Defense and the intelligence community are eager to use artificial intelligence tools to sift through the vast torrent of data created by an ever increasing number of sensors and pick out the most important information for human analysts. For its platform, L3Harris is focusing on creating the training data and workflows that will enable a machine learning tool to process data for the Department of Defense and provide deliverable intelligence. Machine learning platforms are essentially made of three parts: the training data the neural network will learn from, the machine learning algorithm itself, and then how the platform integrates into other Department of Defense systems. L3Harris will be working on what Rorrer calls the front end and the back end of the AI platform. “A lot of AI/ML technologies can be ported into that middle category,” he said. “Neural network applications that have been developed in commercial space can be brought in if we can address the front end and the back end of that in DoD space.” For nearly 30 years, L3Harris has been incorporated advanced modeling and simulation capabilities to test out new payloads and optical systems, using computers to plot out how the atmosphere and other factors will impact their technologies. Now the company plans to use those modeling and simulation tools to develop the training data that will teach a machine learning algorithm how to solve complex DoD problems, such as identifying a threatening object within satellite imagery. “All of that summed up—we make very good fake imagery,” said Rorrer. “ We've taken that technology that was essentially developed for another reason and pivoted (to using it) as a source of synthetic training data for these neural net applications.” Synthetic training data can be especially important for developing DoD or intelligence community AI applications, since there's often not enough real world imagery of the threats they're focused on, said Rorrer. L3Harris believes that they can create fake imagery that looks enough like the real thing that when real imagery is fed into the algorithm it can find the objects it's supposed to. https://www.c4isrnet.com/intel-geoint/2020/03/18/l3harris-is-building-an-ai-tool-to-help-process-geoint/

The Army launched its Shark Tank-style xTechSearch before coronavirus hit, but several of the small firms competing for $1.2 million in prizes are working on ways to help. WASHINGTON: A portable scanner that checks throat swabs and blood samples for dozens of different pathogens in 60 minutes. Sprayable sealant for wounds that kills germs with nanoscopic particles of silver. A mental health app that tracks the user's state and pushes out tailored tips and resources for, as an example, dealing with coronavirus-induced isolation. These were just the first three pitches I saw yesterday when I tuned in to the Army's webcast of its xTechSearch 4 pitches. Originally planned to happen before a live audience at AUSA's Global Force conference in Huntsville, they're now running online this week as a social distancing precaution. The Army already has the lion's share of the Defense Department's medical assets, since it has both the most personnel and the biggest role in humanitarian disaster response, and the service is playing a leading role in the government-wide response. It's also eagerly pursuing new technology. The 2020 edition of Army's Shark Tank-style competition for innovative technologies – with $1.7 million in prizes at stake this year, $1.2 million in this week's round alone – started long before COVID-19 broke out in Wuhan, China. But with the Army acutely interested in advanced medical science, it's understandable that several of the competitors are working on projects relevant to the coronavirus. https://breakingdefense.com/2020/03/covid-19-biotech-innovators-pitch-army-rapid-test-kits-more

By: Aaron Mehta WASHINGTON — A U.S. State Department fund to help European nations replace Russian-made weapons with American equipment has expanded to eight countries, but will be eschewing a second wave of funding in favor of targeted investments. In 2018, the State Department quietly launched a new effort known as the European Recapitalization Incentive Program, or ERIP, a new tool developed alongside U.S. European Command to speed up the process of getting allied nations off Russian gear. The U.S. benefits both strategically — getting partners and allies off Russian equipment to improve interoperability and deny Moscow funds for maintenance — and financially, thanks to the sale of American weapons abroad. ERIP funds, reprogrammed from unused dollars such as regional Foreign Military Financing, come in one-time bursts to help a country buy American-made alternatives to Russian kit. To get the money, the European nation must pledge to not buy Russian equipment in the future, while also at least matching the dollar value of the ERIP grant with domestic funding. The initial funding round consisted of six countries, totaling $190 million in reprogrammed fiscal 2017 dollars. As of last May, the State Department was considering a second round of ERIP grants and was at least in early discussions with Latvia about the funding. But in the time since, the department decided there won't be a second round, but rather ERIP will become a tool best used on a rolling basis. (Discussions with Latvia turned to different pots of money other than ERIP, according to a source.) “There was a lot of discussions about a second round, but the way it's kind of evolving is, rather than look at it as rounds is, look at it as opportunities,” a senior State Department official told Defense News on condition of anonymity. “It's a tool that we can use when opportunities arise for us to work with a partner to make a difference.” All told, the department has given out roughly $277 million in ERIP grants in the last two years — but, the official said, those relatively small dollars helped lock in roughly $2.5 billion in U.S. weapons sales. That's a win in “pure economic terms,” the official said, even before getting into the hard-to-quantify policy and political benefits. “It was a pretty bold decision in trying to help some of these countries acquire a pretty high capability capital intensive, and for some of them it's their first major [Foreign Military Sales] case, period.” Going forward, there may be tie-in money from EUCOM, which could kick in $1-3 million in small grants to nations that received ERIP dollars in order to help nations with maintenance costs on the newly bought American equipment. That money would likely come from DoD's Section 333 authority. Asked about that potential. DoD spokesman Lt. Col. Uriah Orland said the department "continues to work closely with the Department of State in the planning of security assistance with our European partner nations that enables them to reduce their dependencies on Russia's defense industry and build and/or sustain their own defense capabilities.” Targeted, ongoing funding Bulgaria presents a notable example for how the thinking on ERIP is evolving. The country spent several years debating what fighter jet to purchase, with the finalists coming down to new F-16s from Lockheed Martin, secondhand F-16s from Portugal, Eurofighter Typhoons from Italy and Saab Gripens from Sweden. As ERIP was envisioned, it would be used only for rotorcraft or ground vehicles. But with the government in Sofia teetering on the edge of rejecting the Lockheed deal, the U.S. State Department stepped in and used $56 million in ERIP dollars to push the F-16s over the edge and finalize a deal that could exceed $1.6 billion in costs. “For countries where it's a politically contentious issue, whether for economic or political reasons” the fund can help make a deal happen, the official said. “We were able to close that gap with an ERIP grant that enabled them to make the purchase and acquire the capability.” The second nation to get a targeted ERIP grant has been Lithuania, which in October announced plans to buy six UH-60 Black Hawk helicopters to replace its Soviet-made Mi-8 fleet. The State Department kicked in $30 million of ERIP funding to help complete that deal. In fact, no one piece of equipment has benefited from ERIP as much as the UH-60, of which three of the eight ERIP grants has helped procure. The eight projects to date are: Albania: $30 million for UH-60 procurement. The UH-60 is produced by Sikorsky, a Lockheed Martin subsidiary. Bosnia and Herzegovina: $30.7 million for the Bell Huey II. Croatia: $25 million for Bradley fighting vehicles, manufactured by BAE Systems. Croatia is also working to stand up local maintenance for the equipment. North Macedonia: $30 million for Stryker vehicles, produced by General Dynamics. Slovakia: $50 million for UH-60 procurement. Greece: $25 million earmarked, but the government is still debating what to buy. Likely to either be Bradley vehicles or the M1117 Armored Security Vehicle from Textron. Greece stands out because, as a higher-income nation, they are technically ineligible for Foreign Military Financing dollars, but a political decision was made to support them with ERIP anyway, the official said. Lithuania: $30 million for UH-60 procurement. Bulgaria: $56 million for eight Lockheed-produced F-16s. All of those deals except Greece and Lithuania are under contract, with a letter of request from Lithuania expected in the next few weeks. As to future opportunities, “we always kind of have our eye open, and we rely on the country teams out in the field to bring us these opportunities and think about them,” the official said. Although at the moment there are no potential ERIP projects in the works. “We continue to look at the Baltics, we look at the Balkans,” the official said, adding that “countries within Eastern Europe, the Baltics, the Balkans moving towards a new ground mobility or rotorwing systems with something to divest would be our top candidates.” All of those deals except Greece and Lithuania are under contract, with a letter of request from Lithuania expected in the next few weeks. As to future opportunities, “we always kind of have our eye open, and we rely on the country teams out in the field to bring us these opportunities and think about them,” the official said. Although at the moment there are no potential ERIP projects in the works. “We continue to look at the Baltics, we look at the Balkans,” the official said, adding that “countries within Eastern Europe, the Baltics, the Balkans moving towards a new ground mobility or rotorwing systems with something to divest would be our top candidates.” https://www.defensenews.com/global/europe/2020/03/18/special-us-fund-to-replace-russian-equipment-in-europe-is-shifting-its-strategy

By: Valerie Insinna WASHINGTON — Textron Aviation is furloughing more than 7,000 workers in the hopes of containing the spread of coronavirus, the company announced Wednesday. Textron Aviation mostly produces commercial business jets, turboprops and piston-engine aircraft through its Beechcraft, Cessna and Hawker brands. However, it also produces a number of military-specific aircraft, such as the Beechcraft T-6 Texan trainer used for basic pilot training by the U.S. Air Force and the AT-6 Wolverine, a weaponized version of that aircraft, and the Scorpion jet. News of the furlough was first reported by The Wichita Eagle, which also detailed number of workers slated to lose work. Textron has declined to specify how many workers will be furloughed or the functional areas of the business that will be impacted. Textron Aviation spokeswoman Sarah White said support for contracts would move forward, though with few details. The Air Force on Monday awarded Textron Aviation a $70 million contract for two AT-6 planes, training and support. That aircraft is manufactured at its plant in Wichita, Kan. “We are abiding by the requirements established by the DoD and our partner nations, as well as the protocols implemented across U.S. and customer bases worldwide,” she said in a written statement to Defense News. “We will continue to support our Defense customers according to our funded contract requirements.” More generally speaking, the furlough “will allow us to do our part in mitigating and containing the spread of the COVID-19 through social distancing, while continuing to support our customers,” White said. The company is also “limiting large group meetings, increasing daily cleaning of its facilities, restricting travel, and cancelling our participation in several global meetings and events” in response to the pandemic. The furlough will last from March 23 until May 29, but each impacted employees will only lose four weeks of work, she said. https://www.defensenews.com/coronavirus/2020/03/18/textron-aviation-announces-furlough-of-thousands-of-workers

By: Aaron Mehta , Valerie Insinna , Jen Judson , David B. Larter , and Joe Gould WASHINGTON — Like everyone else in America, the defense industry is still reeling from how quickly the new coronavirus, known as COVID-19, went from a potential issue to a city-shuttering pandemic. But as major economic hubs like San Francisco and New York City struggle with curfews and restrictions on public gatherings, companies — and the Defense Department — still appear to be sorting out if any shutdowns related to work are imminent. The fluid nature of the situation is reflected in a series of industry statements, captured below by Defense News reporters. In many cases, when contacted by reporters and asked directly if any production lines were being slowed or halted by the attempt to reduce the rate of infection, spokespeople responded with general comments about challenges with the disease. That's not a huge surprise to Byron Callan, an analyst with Capital Alpha Partners, who noted that there are many moving parts for companies to work through. “Maybe it's too soon for a lot of these guys,” Callan said. “When you think about it, we're into the second week of this [as a national emergency]. By the time they do earning calls in April, they should definitely have a better grip on what's happened in the last few weeks and what might they be looking at.” That could potentially include anything from supply chain issues to delays in delivery of defense articles to a massive bailout of the commercial aerospace industry and issues with pension requirements, Callan warned. “It's like a giant rock you drop in a lake. It's got all these waves. The people who work in restaurants or hotels are the ones feeling it immediately, but it's going to wash up and ripple through all these sectors, and we just don't know how or when the impact will be,” Callan said. “You're pilling up unknowns and unknowns here.” Todd Harrison of the Center for Strategic and International Studies noted that the design of modern production spaces shouldn't preclude people being able to work there, noting that for “a lot of those manufacturing jobs, they're set up, and the way a lot of people are doing work, they have adequate social distancing anyway." “If you've been in these facilities, they're not like sweatshops where people are in crowded, unventilated areas. It's pretty spread out, and a lot of the jobs in defense manufacturing are basically operating machinery,” he said. “I think what would be more affected would be the engineering and design functions, where the engineers tend to operate in more cubicle-like spaces — and you probably don't want to be doing that right now.” The Pentagon is also early in the process of getting a handle on what those impacts may look like. The department's top acquisitions official, Ellen Lord, has instituted a daily phone call with the Aerospace Industries Association, National Defense Industrial Association, Professional Services Council, National Association of Manufacturers, and Chamber of Commerce to “ensure the security, reliability and resilience of our defense-industrial base” and “and get feedback on COVID-19 impacts on industry,” according to a department spokesman. The first call, which happened Tuesday, was chaired by Deputy Assistant Secretary of Defense for Industrial Policy Jennifer Santos and included representatives from the Industrial Policy office, the Defense Contracting Management Agency, the Defense Logistics Agency, and the Defense Pricing and Contracting office. One potentially vulnerable part of the defense-industrial base is the ongoing modernization of America's nuclear arsenal, which the head of U.S. Strategic Command said last month is approaching a “point of no return” should there be even small delays in the upgrade effort. On Tuesday, Capt. Bill Clinton, STRATCOM's chief of public affairs, said the combatant command is “confident the services, along with industry partners, are able to keep production related to modernization of our nuclear forces on track, while taking appropriate precautions to keep their workforces safe and healthy. ... While our nation is working diligently to solve this acute public health crisis, I am confident we can continue modernizing our nuclear forces on time as planned.” Over the past few days, Defense News reached out to a number of key defense players whose production lines could be impacted by the virus. Here is a collection of their responses: BAE Systems spokeswoman Kelly Golden: BAE Systems has robust business continuity plans which have been implemented and are under constant review as the situation evolves. We continue to ensure we are providing a safe work environment for our employees, customers and suppliers while minimizing impact to our operations. We have also asked our suppliers and contractors to implement measures that are consistent with those we have put in place to protect our employees. Boeing spokesman Larry Chambers: Boeing has issued updated guidance directing all employees who are able to perform their work from home effectively to telecommute until further notice. Some Boeing sites were already partially or fully operating under these guidelines in accordance with local or national government mandates. Production continues at this time, and the company has enhanced cleaning procedures in work spaces, common areas and on high-touch surfaces. We're assessing the safety of all of our sites and their alignment with local, state and national government guidance as we continuously monitor this evolving situation. Leadership at each of our sites is working closely with their employees to implement the guidance, and will make all decisions necessary to follow evolving government direction and to ensure the health and wellbeing of their teams and communities. Electric Boat spokeswoman Liz Power: Electric Boat remains open for business. Our ongoing mission is to provide our Navy with the high-quality submarines they require to complete their missions. We have initiated all government-recommended measures to mitigate spread of the disease and continue to work closely with our employees, customers, suppliers, stakeholders and our community to keep them informed. Fincantieri spokesman Eric Dent: Fincantieri Marine Group has customers with important missions — naval and commercial — and together we're dealing with the Coronavirus pandemic and working to prevent or reduce its impact to our mission and our people. So far, we have experienced no production delays. Obviously like other businesses and shipyards, we have to balance force health protection and production as we work through this. We've taken several mitigating actions, such as extensive cleanings of common areas, scrutinizing the self-reported health of every guest or visitor in the yard, eliminating all but critical travel outside the local area. In some circumstances, we are encouraging employees to work from home if possible. Through this all, we continue to reinforce the need for stringent personal hygiene and social distancing protocols, as well as eliminating large gatherings. We continue communicating with our employees so they understand the importance of their health is to us and their families, and if they exhibit symptoms or are caring for someone with flu-like symptoms, they should not risk the potential spread of it and stay home in accordance with our personnel policies. We suspended all international travel Mar. 4, and all non-critical domestic travel on Mar. 9. We suspended intracompany travel Mar. 13, to reduce the chance of exposure across multiple Fincantieri shipyards in Wisconsin. General Dynamics Land Systems: We are open for business. Our ongoing mission is to provide our Soldiers with the critical platforms and capabilities that they require to complete their mission. We have initiated all government-recommended measures to mitigate spread of the disease and continue to work closely with our employees, customers, suppliers, stakeholders and our community to keep them informed. Huntington Ingalls Industries spokeswoman Beci Brenton: At HII we are taking actions that are designed with the health and safety of our employees at the forefront of our decision making, and this extends across the enterprise. We are having multiple meetings 24/7 with leadership and diligently monitoring the ever changing situation, as well as following CDC's guidelines. This is rapidly evolving and some measures are division specific while others are universal. [HII has put a video statement from its CEO online addressing several issues.] Lockheed Martin spokesman Trent Perrotto As we monitor global developments we continue to use best practices to mitigate risks related to Coronavirus (COVID-19). The health and well-being of our employees and partners is our top priority. Across Lockheed Martin, employees with potential exposure are instructed to work remotely and self-quarantine. We have provided guidance to employees and their managers to accommodate flexible work schedules and alternative arrangements where possible. We continue to follow travel guidance from the U.S. government and other countries where we do business, and are limiting all other international and domestic travel unless necessary for business. We also pre-screen visitors to company locations and limit guests to ensure visits are necessary for business. When the circumstances warrant, we deep clean work areas and common spaces in any facility with elevated exposure to COVID-19 and regularly share exposure-prevention protocols to reinforce healthy behaviors. Additionally, we are mitigating any potential impacts to customers and implementing business continuity plans as required, including secure telework for our customer support teams. There are no specific impacts to our operations or supply chain at this time. We will continue to monitor and coordinate with customers should issues arise. Northrop Grumman spokesman Tim Paynter: We continue to closely monitor this rapidly evolving situation so we can quickly address concerns and impacts to our employees, operations and customers, and we are ready with contingency plans as the situation continues to develop. The safety and well-being of our employees is our top priority and we are continuing to provide our employees as much information as possible. We are taking additional steps to protect the well-being of our employees, including halting travel, limiting non-essential visitors to work environments, reducing density and increasing separation distance where possible, providing personal hand sanitizers and cleaning our workplaces on a daily basis and disinfecting as needed. Oshkosh Defense spokeswoman Alexandra Hittle: Oshkosh Defense is committed to preventing the spread of COVID-19 and is closely following the Center of Disease Control's (CDC) guidelines and recommendations. The safety and wellbeing of our team members and our customers is of the utmost importance, therefore we have taken critical steps to ensure we are taking care of our people while maintaining continuity of operations. Raytheon spokesman John Patterson: We are actively monitoring the COVID-19 pandemic and have taken a variety of immediate steps to ensure the safety and wellbeing of our employees. This includes domestic and international travel restrictions, restrictions on face to face meetings, and new work-from-home and social distancing protocols in all our facilities. https://www.defensenews.com/coronavirus/2020/03/18/we-asked-defense-companies-how-theyre-impacted-by-the-coronavirus-heres-what-they-said