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"Looking ahead, defense acquisition is in uncharted territory," says Air Force acquisition head Will Roper of the effects of the COVID-19 virus. By THERESA HITCHENS WASHINGTON: While the cancelation of the biennial Farnborough Air Show due to the COVID-19 pandemic may not have an immediate impact on the bottom lines of aerospace firms in the defense sector, the decision to close one of the world's top two airshows is yet another harbinger of pending upheaval in the overall market, analysts say. In particular, it deprives US firms of publicity abroad and highly valuable face-time with customers and potential customers from foreign governments. “Things like Farnborough are important to US aerospace companies because they help to facilitate sales and marketing,” said Todd Harrison, director of the Aerospace Security Project at the Center for Strategic and International Studies (CSIS). “It's traditionally been a place where you show off your latest technology and latest systems, but it's also where you finalize deals that have been in the works for a while. And so, some of that can still happen, but some of it may not happen.” Richard Aboulafia, a veteran aircraft industry analyst at Teal Group, echoed: “It's just a reflection of a sad reality: economic time has simply come to a halt for our industry and for others. That means fewer big opportunities to meet clients, advertise products and capabilities, share information, and look for opportunities. Big air shows are essential for these, but here we are.” The Farnborough Air Show — which takes place south of London — registered representatives from 96 countries in 2018, and some logged $192 billion in orders and contract commitments. The cancelation of the 2020 show, slated for July 20-24, was announced today. “I don't see the cancellation of Farnborough as a big blow to defense contractors. It is generally a way of raising their profile, but has no immediate impact on their business prospects,” said Phil Finnegan, Teal Group's director of corporate analysis. That said, Finnegan and a number other analysts agreed, the aerospace market is in for a rough ride — and not just on the commercial side as airlines see their profits for 2020 nosediving, making it increasingly unlikely that they will invest in new planes. “Looking ahead, defense acquisition is in uncharted territory. Near- and far-term impacts of Coronavirus evolve daily,” Air Force acquisition head Will Roper said this afternoon. “As we complete our first week of response, our teams navigated potential work stoppages, changing local and state directives, halted supply chains, and gearing up to support any national Defense Production Act requirements.” The Defense Production Act, which allows the government to order companies to boost production or produce new things, was invoked last week by President Donald Trump. Finnegan said “the biggest threat to defense contractors will come to those with significant commercial aerospace operations. The cash flow drain from those operations potentially could hurt them. “It also reiterates the importance of maintaining a balance in operations,” he added. “Obviously, in recent years commercial aerospace has offered greater growth and potentially high profit margins. This crisis reiterates the importance of a diversified approach to defense and aerospace to take advantage of the stability of the defense market in a crisis.” Indeed, several other long-time industry analysts said that DoD may face price hikes as firms try to shift the costs of commercial overhead to the defense contracts — especially for spare parts. Further, Harrison noted, governments around the world are going to be cash-strapped and likely loathe to make new commitments to large buys of new fighter jets or drones. According to the latest report from the Aerospace Industries Association, US aerospace and defense exports in 2018 amounted to $151 billion: civil aerospace accounted for the majority with $131.5 billion; defense products the remaining $19.5 billion. “So, Farnborough may not be the reason that sales go down, It's more of a symptom of the fact that there just aren't going to be as many opportunities for a while,” he said. https://breakingdefense.com/2020/03/covid-19-farnborough-cancelation-another-blow-for-defense-biz

ARMY Southwest Valley Constructors, Albuquerque, New Mexico, was awarded a $524,000,000 modification (P00011) to contract W912PL-19-C-0015 for design build of the Tucson sector barrier wall replacement project. Work will be performed in Tucson, Arizona, with an estimated completion date of Sept. 7, 2021. Fiscal 2020 operations and maintenance, Army funds in the amount of $524,000,000 were obligated at the time of the award. The U.S. Army Corps of Engineers, Phoenix, Arizona, is the contracting activity. BAE Systems Land & Armaments L.P., York, Pennsylvania, was awarded a $339,131,639 modification (P00050) to contract W56HZV-17-C-0001 for 48 vehicle sets of self-propelled howitzer and carrier, ammunition, tracked vehicles and associated support. Work will be performed in York, Pennsylvania, with an estimated completion date of Jan. 31, 2023. Fiscal 2018, 2019 and 2020 other procurement, Army funds in the amount of $339,131,639 were obligated at the time of the award. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity. SGS LLC,* Yukon, Oklahoma, was awarded a $19,940,157 firm-fixed-price contract for design-build construction of a fire rescue center. Bids were solicited via the internet with nine received. Work will be performed in Altus, Oklahoma, with an estimated completion date of April 21, 2022. Fiscal 2020 military construction, Army funds in the amount of $19,940,157 were obligated at the time of the award. U.S. Army Corps of Engineers, Tulsa, Oklahoma, is the contracting activity (W912BV-20-C-0005). PD Systems Inc.,* Springfield, Virginia, was awarded a $14,829,404 firm-fixed-price contract to maintain and sustain equipment assigned to the 63rd Army Reserve Readiness Division. 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 29, 2025. The 419th Contracting Support Brigade, Fort McCoy, Wisconsin, is the contracting activity (W911SA-20-D-3000). SAWTST LLC,* Newnan, Georgia, was awarded a $10,842,921 firm-fixed-price contract to maintain and sustain equipment assigned to the 63rd Army Reserve Readiness Division. 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 March 29, 2025. The 419th Contracting Support Brigade, Fort McCoy, Wisconsin, is the contracting activity (W911SA-20-D-3001). CORRECTION: The $14,143,940 firm-fixed-price contract announced on March 20, 2020, to Stantec Consulting Services Inc., New Orleans, Louisiana (W912P8-20-D-00004), for the design of pump stations and drainage structures was actually awarded today, March 23, 2020. NAVY Pratt and Whitney, a United Technologies Corp. company, Hartford, Connecticut, is awarded a $193,780,323 cost-plus-incentive-fee, fixed-price-incentive-firm contract for the procurement of long lead materials for the production of low rate initial production of propulsion systems (Lot 15 F135) for the Air Force, Navy, Marine Corps, non-Department of Defense (DoD) participants and Foreign Military Sales (FMS) customers. Work will be performed in East Hartford, Connecticut (56%); North Berwick, Maine (13%); Indianapolis, Indiana (10%); Jupiter, Florida (7%); Windsor Locks, Connecticut (5%); Bristol, United Kingdom (4%); Rockford, Illinois (2%); Santa Isabel, Puerto Rico (2%); and Phoenix, Arizona (1%), and is expected to be complete by December 2023. Fiscal 2020 aircraft procurement (Air Force) funds in the amount of $66,446,810; fiscal 2020 aircraft procurement (Navy) funds in the amount of $61,396,328; non-DoD participants funds in the amount of $52,153,031; and FMS funds in the amount of $13,784,154 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract combines purchases for the Air Force ($66,446,810; 34.3%); Navy ($30,788,105; 15.9%); Marine Corps ($30,608,223; 15.8%); non-DoD participants ($52,153,031; 26.9%); and FMS customers ($13,784,154; 7.1%). This contract was not competitively procured pursuant to U.S. Code 2304(c)(1). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-20-C-0011). Sabre Systems Inc., Warrington, Pennsylvania, is awarded $77,733,927 for a cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract. Work will be performed in Patuxent River, Maryland, and is expected to be complete by May 2025. This contract provides digital transformation planning and execution; enterprise alignment; technology exploration; acceleration and integration; digital/information technology (IT) consultation business intelligence; application portfolio management; system integration; enterprise architecture; design and management; web management; Navy Marine Corps Intranet/Next Generation Enterprise Network program management; IT operations; cybersecurity; information assurance; cloud services; maintenance functions; network security; automated data processing support services; digital modeling and virtual environment support; talent change management; data analytics and integration; and business process management and improvement in support for the Naval Air Systems Command Digital Group. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was competitively procured via an electronic request for proposal; three offers were received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-20-D-0072). Lockheed Martin Rotary and Mission Systems, Manassas, Virginia, is awarded a $29,647,813 cost-plus-incentive-fee and cost-only modification to a previously-awarded contract (N00024-18-C-5218) for program management office and engineering services in support of the Surface Ship Undersea Warfare System model AN/SQQ-89(V). Work will be performed in Manassas, Virginia (78%); Syracuse, New York (12%); Lemont Furnace, Pennsylvania (6%); and Liverpool, New York (4%), and is expected to be complete by March 2021. This contract combines purchases for the Navy (90%); and the government of Australia (10%) under the Foreign Military Sales (FMS) program. Fiscal 2016 - 2020 shipbuilding and conversion (Navy); 2018 – 2019 other procurement (Navy); 2020 research, development, test and evaluation (Navy); and FMS Commonwealth of Australia funding in the amount $23,075,308 will be obligated at the time of award. Funds in the amount of $14,387 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Pave-Tech Inc., Vista, California, is awarded $15,189,633 for a firm-fixed-price task order (N62473-20-F-4372) under a multiple award construction contract for repairs to Taxiway Bravo and Taxiway Golf at Naval Air Station, Fallon, Nevada. Work will be performed in Fallon, Nevada, and is expected to be complete by January 2022. The work will provide for the repair and replacement of deteriorated taxiway conditions, shoulders and associated surfaces. This project will also repair damaged 5kV airfield wire, lighting and ancillary parts and devices associated with Taxiways Bravo and Golf. All airfield lighting and electrical infrastructures shall be repaired to a state that complies with current Naval Air Systems Command, Unified Facilities Criteria and Federal Aviation Administration Airfield Regulations. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $15,189,633 are obligated on this award and will not expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-19-D-2440). Lockheed Martin Corp., Rotary and Mission Systems, Liverpool, New York, is awarded a $8,800,000 firm-fixed-price modification to a previously-awarded contract (N00024-20-C-5503) to increase quantities for the full-rate production of the Surface Electronic Warfare Improvement Program and the AN/SLQ-32(V)6, a combat system that provides a full range of undersea warfare functions. Work will be performed in Liverpool, New York (78%); and Lansdale, Pennsylvania (22%), and is expected to be complete by April 2022. Fiscal 2019 shipbuilding and conversion (Navy) funding in the amount of $8,800,000 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. (Awarded March 20, 2020) KJS Support Services JV LLC,* Fort Worth, Texas, is awarded an $8,594,573 firm-fixed-price, indefinite-delivery/indefinite-quantity modification for the exercise of the first option under the contract for base operating support services at the Naval Air Facility El Centro, California. Work will be performed in El Centro, California, and the option performance period is from April 1, 2020, to March 31, 2021. The work provides for labor, supervision, materials, equipment, tools, parts, supplies and transportation to be used for various base operating support service functions as follows: grounds electronics; airfield facilities; passenger terminal and cargo holding; supply; morale, welfare, and recreation; facility management and investment; janitorial services; pest control services; swimming pools operation and maintenance; grounds maintenance; street sweeping; electrical; gas; wastewater; water; base support vehicles and equipment; and environmental response. After the award of this option, the maximum dollar value including the base period, seven option years and one six-month option will be $74,821,438. No funds will be obligated at time of award of the modification. Fiscal 2020 operations and maintenance (O&M) (Navy); fiscal 2020 Defense Health Program; fiscal 2020 Defense Commissary Agency account; fiscal 2020 family housing (O&M) (Navy); and fiscal 2020 non-appropriated funds in the amount of $5,594,573 for recurring work will be obligated on individual task orders issued during the option period. Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-18-D-5606). AIR FORCE The FlightSafety Services Corp., Centennial, Colorado, has been awarded a not-to-exceed $25,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, single-award contract for a multi-country KC-46 aircrew and maintenance simulator training. The contractor will provide KC-46 aircrew and maintenance training to support the U.S. government and Air Force Security Assistance Training international partners' mission objectives. Work will be performed at Altus Air Force Base, Oklahoma, and is expected to be completed September 2026. This is a sole-source requirement as the FlightSafety Corp., in accordance with 10 U.S. Code 2304 (c)(1), as implemented by Federal Acquisition Regulation 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements. Security and Cooperation funds in the amount of $2,500 are being obligated at the time of award. The Air Force Installation Contracting Agency, 338th Specialized Contracting Squadron, Joint Base San Antonio-Randolph, Texas, is the contracting activity (FA3002-20-D-0005). (Awarded March 19, 2020) *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2122344/source/GovDelivery/

By: Mike Gruss The Pentagon is asking industry to help build ground stations it needs for multidomain operations and for sending targeting data to military networks used to fire weapons. In a March 18 notice to industry, the Pentagon's Silicon Valley outpost, the Defense Innovation Unit, said leaders there are interested in a prototype ground station that can quickly process sensor data from military satellites and improve battlefield awareness. “The goal of the program is to reduce sensor to shooter latency via automated metadata correlation to provide time-dominant intelligence for delivery of desired effects (e.g. Long-Range Precision Fires),” the notice read. The program would include a two-year competition. Industry would have to deliver two working mobile ground stations in January 2022 for use in a government exercise. Those ground stations would have to prove they offer a reduced latency direct downlink of data/imagery from commercial space sensors and military or intelligence satellites. Because the sensors will generate a flood of data, the prototypes would also need to rely on artificial intelligence and machine learning. The DIU effort is working in parallel to the Army's TITAN ground station program, which will process aerial and terrestrial sensors. In October, Brig. Gen. Rob Collins, program executive officer for intelligence, electronic warfare and sensors, said the Army has roughly 100 tactical ground stations, 13 operational ground stations and “a few” other dissemination vehicles. Army leaders have said TITAN will allow for the conduct of deep targeting in a contested environment and enabling “cross-domain fires with [artificial intelligence-]shortened kill-chains.” The system is supposed to be a primary tool for a new unit working with the Army's Multi-Domain Task Force known as I2CEWS, which stands for intelligence, information, cyber, electronic warfare and space. Responses are due April 3. https://www.c4isrnet.com/battlefield-tech/c2-comms/2020/03/20/the-pentagon-wants-to-see-new-ground-station-prototypes/

By: Aaron Mehta WASHINGTON — The Pentagon has opened up cash flow for the defense industry, the latest in a series of moves from the department to combat economic damage brought about by the new coronavirus pandemic. In a memo released Sunday, the department announced that progress payment rates for defense items under contract will increase from 80 percent of cost to 90 percent for large businesses, and from 90 percent to 95 percent for small businesses. The move will allow industry to receive more cash up front than under normal circumstances. The order was signed by Kim Herrington, acting principal director for defense pricing and contracting at the Department of Defense. In a statement, spokesman Lt. Col. Mike Andrews called the move “an important avenue where industry cash flow can be improved." The Defense Contracting Management Agency “will work on mass modifications to contracts where applicable (vs one by one) using DCMA authorities,” Andrews said. “In addition, the Department is accelerating payments through several means to prime contracts and directing prime contracts to expedite payments to subcontractors.” The increase in cash flow was sought by both industry and supporters in Congress. An increase in early payments was one of the requests made by the Maine delegation to Defense Secretary Mark Esper last week. The Pentagon plans to return to normal operations once the national emergency caused by COVID-19 has passed. Notably, the announcement of the move included a warning that “it is especially important to understand that during this crisis the [defense-industrial base] is vulnerable to adversarial capital, we need to ensure companies stay in business without losing their technology.” Over the last two years the department has focused on ensuring Chinese investment is limited in the defense-industrial base. The move comes after the DoD issued guidance to industry that defense contractors are considered “critical infrastructure” under a Department of Homeland Security definition, which should allow contractors to continue to work even if local governments issue orders to freeze work, as has happened in New York and San Francisco. However, that guidance was advisory in nature and does not have the full legal authority that industry leadership had sought, per a Friday letter to Esper from the Aerospace Industry Association. “Recent DHS and USD (A&S) memoranda have been helpful on a case-by-case basis, but they are advisory in nature and not legally binding; to establish stability for our operations across the nation, the federal government should legally establish national security programs and our workforce as essential,” read the letter, signed by AIA head Eric Fanning; Northrop Grumman CEO Kathy Warden; and Kelly Ortberg, special adviser to the Office of the CEO of United Technologies. In an investors note, analyst Roman Schweizer of Cowen noted: “These new policies provide clarity on issues companies have been concerned about, but we do not think they alleviate all of industry's concerns nor do they eliminate all the disruption. But they are positive signs that DoD will help mitigate reasonable impact.” More efforts are likely to emerge in the coming days, including new measures from the Small Business Administration and its small business emergency loan program to help protect small key defense suppliers who are particularly vulnerable at this time. Major defense industry partners are also seeking relief in fulfilling contract milestones that could be impacted by the outbreak. “We encourage DoD to publish regulatory authority requiring contracting officers to consider financial relief as part of requests for equitable adjustments for measures we take in response to COVID-19,” the AIA letter read. “This includes relief related to bans, closures, quarantines and other travel restrictions, the loss of public infrastructure and public transportation, restricted access to resources and tools, and other public safety restrictions.” On Friday, the Acquisition and Sustainment division of the Small Business Office reached out to the defense industry's small businesses and is working with the Small Business Administration and its small business emergency loan program to help protect these companies. https://www.defensenews.com/coronavirus/2020/03/23/pentagon-loosens-cash-flow-for-industry-more-measures-likely-coming/

By: Jill Aitoro WASHINGTON — Defense companies with substantial exposure to commercial markets are taking dramatic measures to limit overhead and preserve cash, with one chief executive calling the new coronavirus pandemic “worse than anything we've seen.” Among the companies that announced cost-cutting measures tied to losses or potential losses from the COVID-10 crisis, CAE pointed to temporary layoffs — starting first with almost 500 unionized employees, but with more inevitably to follow, CEO Marc Parent said during a webcast hosted by RBC Capital Markets. Parent and his executive team are taking salary cuts of 50 percent, with vice presidents taking cuts of 30 percent, managers and directors 20 percent, and all others 10 percent. The company is also taking capital expenditures as well as research and development investment to the bare minimum. “We're not Pollyanna here,” Parent said during the webcast. “We're assuming a tough period, and we're taking immediate steps to preserve cash.” In terms of business disruption, “this is worse than anything we've seen,” including 9/11, he added. GE Aviation, which already announced a hiring freeze, the cancellation of salaried merit increases and a reduction of nonessential spending, will cut about 10 percent of its U.S. workforce. CEO David Joyce will give up half of his salary starting April 1. The division also pointed to temporary lack of work impacting about 50 percent of its U.S. maintenance, repair and overhaul employees for 90 days. Meanwhile, Airbus is looking to investor incentives to gain some cash, canceling one planned dividend payment and another proposed 2019 dividend payment of 1.80 euros (U.S. $1.90) per share to save the company 1.4 billion euros ($1.5 billion). It's also lining up 15 billion euros in new credit to provide more cash to weather the crisis. All three companies are big players in commercial aviation. Airbus ranked No. 9 on the Defense News Top 100 list of defense companies, but with only 17 percent of its 2018 revenue coming from the defense and security business. GE ranked No. 29, with 13 percent of business coming from defense, and CAE ranked No. 70, with 40 percent coming from defense. The defense portions of the businesses are also feeling the impact, though less substantial because of the structure of contracts that often extend to multiple years. For CAE, programs fall under long-term contracts, versus “per sip” agreements more typical of commercial customers where revenue is driven by utilization. The company's CEO, Parent, also pointed to a $4 billion backlog in defense. Still, base access restrictions and the natural limitations on movement of people has made both training and order fulfillment more difficult for the defense business. “And the general preoccupation of the crisis has impact on the speed of procurement processes,” Parent said. “We don't see obvious structural impact, but we can anticipate short-term friction.” Publicly traded companies with mixed commercial-defense business have also seen deeper losses to stock price, generally speaking, compared to more pure-play defense companies. While Lockheed and Northrop Grumman stock prices have dropped about 34 percent and 24 percent in the last month, respectively, CAE and GE have dropped 66 percent and 48 percent, respectively. Boeing, with 66 percent of revenue coming from commercial and other nondefense markets, has seen a whopping 67 percent drop during that period. Raytheon, despite being almost entirely focused on defense, saw a bigger drop than most pure-play companies of about 47 percent during the last month, likely due to the increased exposure to commercial that will come with its United Technologies merger. But stock price can be a rather deceiving picture of impact on industry, particularly long term, warned Byron Callan of Capital Alpha Partners. “A lot of these stocks are part of the S&P 500, where price movements have no relation to underlying fundamentals,” he said. “On the flip side, you could see rotation out of defense and into [those companies] that people think will recover. In other words, folks may be hiding out in defense stocks, but reallocate to markets that they figure are bound to recover eventually” — such as travel and leisure. Looking at defense companies, “Raytheon has been the worst performing stock because they got tied into commercial aerospace through the merger," Callan said, “but going forward that may be the most interesting [stock] of all because there will be a degree of balance.” In other words, what's true now on Wall Street could change considerably months from now. The same could be said about the long-term position of these companies, regardless of how grave the circumstances are today. “The world will return to normal. All crises will come to an end,” Parent said, pointing to the advantage of supporting a highly regulated industry. “We have staying power and stamina to weather the storm, but we're not taking anything for granted. ... We want to be ready when we come out of this.” https://www.defensenews.com/coronavirus/2020/03/23/worse-than-911-defense-firms-cut-overhead-to-the-bone/

By: Valerie Insinna WASHINGTON — Production of the Air Force's KC-46 refueling tanker and the Navy's P-8 maritime surveillance plane will stop as Boeing shuts down all facilities in the Seattle area amid the coronavirus pandemic. “Boeing plans to begin reducing production activity today and projects the suspension of such operations to begin on Wednesday, March 25, at sites across the Puget Sound area,” the company said in a statement on Monday. A Boeing spokesman confirmed that the impacted area includes the facilities in Everett and Renton, where the KC-46 and P-8 are made, respectively. “We plan to temporarily suspend all production operations, including those relating to P-8 and KC-46A, in the Puget Sound region,” the spokesman said. “We're actively engaged with our defense customers to minimize any impacts on their missions. Certain non-production work for all commercial derivative aircraft programs, including for the KC-46 remote vision system enhancements, will continue being done by employees working remotely.” The company is urging employees to telework if they can, but work on classified projects cannot be done on laptops, which could impact more sensitive elements of defense programs. The production stoppage itself is perhaps an even more urgent challenge. Boeing's Puget Sound facilities are best known for commercial airliner production, but the commercial-derivative aircraft it makes for the military —like the KC-46 and P-8 — are built on the same lines. Any pause in commercial production could put Boeing behind in delivering aircraft to the Air Force and Navy. However, Boeing's defense business will likely be able to make a quick recovery as long as the pause in production is not protracted, said Richard Aboulafia, an aerospace analyst with the Teal Group. “P-8, KC-46 and other Boeing defense production in the Puget Sound area is mostly low-volume, like around 1-2 per month,” he said. “So they should be able to recover over the course of the year, assuming the factory deep clean is successful and the pandemic threat turns a corner.” Boeing CEO Dave Calhoun characterized the temporary plant closures as a “necessary step” to protect employees in the wake of a state of emergency in Washington state. "We continue to work closely with public health officials, and we're in contact with our customers, suppliers and other stakeholders who are affected by this temporary suspension,” he said. “We regret the difficulty this will cause them, as well as our employees, but it's vital to maintain health and safety for all those who support our products and services, and to assist in the national effort to combat the spread of COVID-19.” The company will also continue to monitor U.S. government guidance on COVID-19 and conduct a deep cleaning of impacted sites during the two-week pause, Boeing said. https://www.defensenews.com/coronavirus/2020/03/23/kc-46-p-8-production-to-stop-as-boeing-temporarily-shuts-down-production-in-puget-sound-area/

Si vous êtes un manufacturier canadien ou une entreprise canadienne qui peut aider le Canada à répondre aux besoins en fournitures médicales, mobilisez-vous! Vous pouvez faire une différence si : Vos activités manufacturières sont basées au Canada ou vous avez facilement accès aux intrants nécessaires par le biais de votre chaîne d'approvisionnement. Vous disposez d'équipements pouvant être modifiés ou d'installations qui pourraient être réorganisées rapidement pour répondre aux besoins médicaux, notamment pour fabriquer de l'équipement de protection individuelle comme des gants, des masques et des blouses chirurgicales; des désinfectants; des lingettes; des ventilateurs; et d'autres équipements et fournitures médicaux. Vous avez des travailleurs qualifiés capables de réagir et qui seraient disponibles pour travailler dans les circonstances actuelles. Veuillez envoyer une brève description de votre offre à ic.mid-dim.ic@canada.ca

Not long ago, the biggest concern facing commercial aviation was whether Airbus and Boeing could produce enough aircraft to keep up with demand. Industry leaders fretted about how quickly they could ramp up production and whether the supply chain could keep pace. Some airlines were equally bullish, with American Airlines CEO Doug Parker proclaiming: “I don't think we're ever going to lose money again.” After a run of unparalleled and seemingly unstoppable prosperity, aviation and aerospace have flown into a perfect storm. The temporary shutdown of Boeing's 737 MAX production line has waylaid aerospace suppliers. But that pales in comparison to the impact of the coronavirus pandemic, which first crippled a crucial growth engine, China, and is now decimating air transport markets around the world. Each day brings a new round of fleet groundings, layoffs and order deferrals or cancellations, which in the coming months will rip through the manufacturing industry like a tornado. A new forecast from Europe projects Airbus will be forced to cut planned production nearly in half in 2021 and may not fully recover before 2027. Boeing is calling on the U.S. government to provide at least $60 billion in aid to aerospace manufacturers, U.S. airlines want another $58 billion, airports $10 billion and the maintenance, repair and overhaul industry $11 billion. It would not be hyperbole to call this the greatest crisis civil aviation has faced since the dawn of the commercial jet age more than six decades ago. But amid such panic, we need to take a deep breath and remember that this industry has survived many big challenges: oil price spikes; the Sept. 11, 2001, terrorist attacks; the Severe Acute Respiratory Syndrome; and the 2008-09 global financial meltdown. Each time commercial aviation has recovered and grown stronger, resuming its long-held trend of outpacing global economic growth. In one way, the disruption to our lives and businesses caused by the travel restrictions imposed to control the spread of COVID-19 illustrates the degree to which the world has come to rely on air transportation, from enabling commerce to connecting families. This is a crisis on an unprecedented scale for aviation, and there are airlines and businesses that certainly will not survive. But the extent of the disruption gives hope that demand for air transportation will return unabated once the restrictions are lifted. It is vital for governments, lawmakers and industry leaders to recognize that aviation will need help getting through such destructive upheaval. But in some cases, the optics will invite legitimate criticism. For example, Boeing has returned nearly $50 billion to its shareholders over the past five years while investing far less. Now it wants taxpayers to cough up tens of billions for a bailout? U.S. airlines are no better: They have sent 96% of free cash flow to shareholders over the last five years. And what about those airlines in Europe that should have been allowed to die long ago? Will they use this crisis as leverage for yet another government rescue? Clearly, there are lessons to be learned from the crisis, and a return to business as usual will not suffice. But in the near term, this is not about partisan politics or competitive advantage. It is about helping a vital industry survive this calamity. Commercial aviation is a connective tissue that underpins global commerce, drives prosperity and supports many millions of jobs. Allowing it to wither is not a realistic option. The coming days will be dark, but rest assured the industry will recover and once again prosper. https://aviationweek.com/aerospace/editorial-why-coronavirus-cannot-kill-aviation

Statement attributed to Lt. Col. Mike Andrews, Department of Defense spokesman: "The Department continues to aggressively partner with the defense industry to mitigate impacts from COVID-19. Under Secretary of Defense Ellen Lord's Acquisition and Sustainment leaders in Industrial Policy, Defense Pricing and Contracting, Defense Logistics Agency (DLA), and the Defense Contracting Management Agency (DCMA) have made significant progress this week in addressing specific concerns outlined by defense industry leaders. During the 4 daily COVID-19 update calls with defense industry associations leaders this week, led by Deputy Assistant Secretary of Defense for Industrial Policy Ms. Jennifer Santos, several key concerns identified by industry included 1) critical defense contractor workforce ability to continue working; 2) ensuring cash flow to the defense industrial base; and 3) getting standardized guidance out to industry. On Friday the Department issued two memos that address all three concerns. After working closely with the Hill and the Department of Homeland Security, Under Secretary Lord issued a Defense Industrial Base Essential Critical Infrastructure Workforce memo that defined essentiality in the Defense Industrial Base (DIB) workforce, ensuring the defense industrial base's critical employees can continue working. The memo also reiterated her commitment to the safety of the workforce and support of the national security mission. In addition, on Friday Mr. Kim Herrington, Director of Defense Pricing and Contracting, issued a Deviation on Progress Payments memo, which stated that once in contracts, the progress payment rate that contracts can get paid for will increase from 80% of cost to 90% for large businesses and from 90% to 95% for small businesses. This is an important avenue where industry cash flow can be improved. DCMA will work on mass modifications to contracts where applicable (vs one by one) using DCMA authorities. In addition, the Department is accelerating payments through several means to prime contracts and directing prime contracts to expedite payments to subcontractors. Vice Admiral David Lewis, DCMA Director, has worked closely with the contracting workforce and the Defense Finance and Accounting Services (DFAS) to ensure that invoices are continuing to be paid in a timely manner. On Friday, the Acquisition and Sustainment Small Business Office reached out to defense industry small businesses, and is working with the Small Business Administration and their small business emergency loan program to help protect these companies. The Department is fully engaged with the interagency to leverage the Defense Production Act to help reinforce critical elements of the DIB. It is especially important to understand that during this crisis the DIB is vulnerable to adversarial capital, we need to ensure companies stay in business without losing their technology. The Department will be discussing this in more detail next week. Under Secretary Lord remains grateful for the productive discussions with the defense industry associations, U.S. Chamber of Commerce, Hill and State leaders. She's especially proud of the incredible efforts of Department leaders and contracting officers across the nation who are helping ensure a secure, reliable and resilient Defense Industrial Base." https://www.defense.gov/Newsroom/Releases/Release/Article/2121122/partnering-with-the-us-defense-industrial-base-to-combat-covid-19/source/GovDelivery/