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By: Sebastian Sprenger COLOGNE, Germany – A group of six European NATO nations next month will take delivery of the first two of eight Airbus A330 aircraft suitable for aerial refueling and transport missions, the alliance announced. The MFF program, short for Multinational Multi-Role Tanker and Transport Fleet, is one of only a few examples of select NATO nations jointly owning and operating equipment. The first aircraft are slated to arrive in the Netherlands at the main operating base in Eindhoven in June following “a limited delay” over the original schedule, according to a statement. The NATO Support and Procurement Agency manages the program on behalf of member nations Belgium, Czech Republic, Germany, Luxembourg, Norway and the Netherlands. The six nations share the cost of buying the planes as well as flying hours used for missions. The Airbus A330 MRTT aircraft are destined mainly to bolster the aerial-refueling capabilities of participating air forces, which is key to extending the operating radius of their fighter fleets. The tanker can refuel F-16, F-35, Eurofighter, Tornado and Gripen jets, as well as “most of the other” aircraft used by the alliance, including C-17 cargo planes, the NATO statement reads. Nations can also operate the tankers in a cargo, passenger or medical-evacuation configuration. According to a memorandum of understanding governing the aircraft's use, Germany has booked up to 5,500 flying hours per year, followed by the Netherlands (2,000), Belgium (1,000) Luxembourg (200), and Norway and the Czech Republic with 100 each. Besides Eindhoven as the main base hosting five of the envisioned eight total aircraft, the German city of Cologne is slated to host three. NATO officials have touted the capability to ferry cargo among nations here as key to fighting the coronavirus epidemic. Member nations have repeatedly organized flights to deliver medical equipment, for example, to help each other out. In alliance parlance, the increased transportation muscle provided by the MFF program goes to the heart of what officials have called NATO's “resilience” in the face of crises. To that end, officials have begun an examination of how the pact's military assets can help civil authorities absorb the kinds of shocks brought by the coronavirus. https://www.defensenews.com/global/europe/2020/05/19/nato-group-in-europe-to-receive-first-jointly-owned-aerial-tankers/

By: Joe Gould WASHINGTON ― More than two dozen Democrats are demanding that House Armed Services Committee leaders cut defense spending in the 2021 defense policy bill, saying the money would be better spent combating the coronavirus pandemic. A May 19 letter, mostly from Congressional Progressive Caucus members, marked a prelude to what could be complicated efforts to pass the National Defense Authorization Act in the Democrat-led House. The panel is expected in the coming weeks to introduce and mark up a draft, in line with the $740 billion top line set by the 2019 budget deal. But 29 Democrats ― led by House Progressive Caucus Co-Chair Mark Pocan of Wisconsin and Rep. Barbara Lee, a senior appropriator and California progressive ― said the defense spending should be lower than last year's $738 billion top line. With Americans dying from COVID-19 by the thousands, tax dollars would be better spent on an expansion of testing, contact tracing, treatment and vaccine development, they said. “Congress must remain focused on responding to the coronavirus pandemic and distributing needed aid domestically,” the lawmakers wrote. “In order to do so, appropriators must have access to increased levels of non-defense spending which could be constrained by any increase to defense spending.” “Right now, the coronavirus is our greatest adversary. It has killed more than 90,000 Americans, far surpassing the number of casualties during the Vietnam War,” the letter read. “America needs a coronavirus cure, not more war. We need more testing, not more bombs." How the loss of support from 29 House Democrats will factor into passage of the NDAA remains to be seen. In a note accompanying the letter, the organizers noted that if Republicans held back support ― which they did last year ― only 19 Democrats would need to vote “no” this year for the bill to fail. Last year, House Republicans resisted an early version of the 2020 bill written by House Democrats, but even after many of their priorities were stripped out in negotiations with the Republican-controlled Senate, the compromise bill still passed the House without them, 377-48. House Speaker Nancy Pelosi found common ground with the White House on an eleventh hour paid parental leave provision that attracted most Democrats. This year, House Armed Services Committee Chairman Adam Smith, D-Wash., has spoken in favor of working to protect the defense-industrial base through stimulus funding. But with a stimulus bill caught in a partisan deadlock, it's unclear whether lawmakers will see the NDAA as a potential vehicle for defense industry aid. If so, that could be a sticking point. Last month, Smith told reporters that public health needs were more pressing and that within the Pentagon's existing $738 billion budget, defense officials "have a lot of money and ought to spend that money to meet those needs” before Congress considers more. HASC ranking member Mac Thornberry, who led early Republican opposition to last year's bill, has said he is hopeful this year's bill will be more bipartisan. Thornberry, R-Texas, also opposed the idea of cutting defense to fund health care needs. “I bristle a bit at the notion, ‘well, of course [the Department of Defense has] got to get their budget cut,' " he said, “because the world's not going to be safer on the other side of COVID.” https://www.defensenews.com/congress/2020/05/19/house-progressives-demand-pentagon-cuts-citing-pandemic/

By: The Associated Press ALBUQUERQUE, N.M. — A national aerospace and defense contractor has confirmed plans to pack up operations in New Mexico and move to Arizona and elsewhere. Raytheon Technologies Corp. will close its office in Albuquerque, where it employs about 200 people, the Albuquerque Journal reported Tuesday. Company spokeswoman Heather Uberuaga said Raytheon is looking to streamline its capabilities with pursuits and programs located at other sites around the country. She described the move as being in the best interest of customers and said the company will work with employees on individual options for employment going forward. That could include transferring to a new site or applying for different positions within the company. All laid-off workers will receive severance packages, and health care coverage will continue during the severance. Raytheon's Albuquerque division has worked closely in recent years with the Air Force Research Laboratory at Kirtland Air Force Base to develop modern laser and microwave weapons. That work will be transferred to Raytheon Missiles and Defense headquarters in Tucson, Arizona. Raytheon expanded its operations at the Sandia Science and Technology Park on Albuquerque's south side in 2017. The company received $850,000 in economic development funding from the state to offset the expansion costs. Uberuaga said that money has been returned. https://www.defensenews.com/industry/2020/05/20/raytheon-to-move-albuquerque-operations-to-other-us-sites/

NAVY General Dynamics Ordnance and Tactical Systems, Williston, Vermont, is awarded a $58,590,570 firm-fixed-price modification to previously-awarded contract N00024-20-D-5109 to exercise Option Year One for the production and shipping of Mk 82 guided-missile directors and Mk 200 director control units. Work will be performed in Williston, Vermont (50%); and Saco, Maine (50%). The Mk 82 director serves to position the fire control system antenna to a commanded and stabilized position in space for the purpose of illuminating the target. The director has two axes of motion and has slip rings and a dual radio frequency rotary joint to allow unlimited rotation in train. The Mk 200 director control houses the elevation and train servo-amplifiers for its associated director. Within the director control, solid-state servo-amplifiers provide the servo drive signals that position the director to the desired target position. These components are part of the Mk 99 missile fire control system framework, which is a critical component of the Aegis Weapon System. Work is expected to be complete by December 2025. Fiscal 2020 shipbuilding and conversion (Navy); and Foreign Military Sales funding in the amount of $58,590,570 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, D.C., is the contracting activity. A-VET/MGC JV LLC,* Warner Robins, Georgia (N69450-20-D-0028); CYE Enterprises Inc.,* Jacksonville, Florida (N69450-20-D-0029); and Pacific Tech Construction Inc., Kelso, Washington (N69450-20-D-0030), are awarded $30,000,000 for a design-build and design-bid-build, indefinite-delivery/indefinite-quantity, multiple award roofing construction contract for projects located primarily within the Florida Panhandle area of responsibility managed by the Naval Facilities Engineering Command Southeast. Work will be performed in Pensacola, Florida (34%); Whiting Field, Florida (33%); and Panama City, Florida (33%), and primarily consists of roof system replacements, repairs and maintenance of various types of existing low-slope and steep slope roofing. This includes but not be limited to: modified bitumen; built-up; metal roofing; waterproof roof coatings; asphalt shingles; roof systems flashings and drainage components; and abatement and handling of hazardous/regulated materials (including and not limited to asbestos, lead paint, mold remediation and polychlorinated biphenyl). Single ply roof systems, slate roofing systems and tile roof systems may be included. Projects can be based on design-build, modified design-build or full plans and specifications format. Work is expected to be complete by January 2021. The maximum dollar value for the five-year ordering period for all three contracts combined is $30,000,000. A-VET/MGC JV LLC* is awarded the initial task order at $194,733 for Building 3748 roof replacement located at Corry Station, Pensacola, Florida. The term of the contract is not to exceed 60 months, with an expected completion date of April 2025. Fiscal 2020 operations and maintenance (Navy) (O&M, N) contract funds in the amount of $196,733 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by O&M, N. This contract was competitively procured via the Federal Business Opportunities website, and nine proposals were received. These three contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command Southeast, Jacksonville, Florida, is the contracting activity. Detyens Shipyards Inc., Charleston, South Carolina, is awarded a $24,235,291 firm-fixed-price contract (N32205-20-C-4003) for a 120-calendar day shipyard availability for the regular overhaul dry-docking of the U.S. Navy Ship Patuxent (T-AO 201). The $24,235,291 consists of the amounts listed in the following areas: Category "A" work item cost, additional government requirement, other direct costs and the general and administrative costs. Work will be performed in North Charleston, South Carolina. Work will include main and emergency switchboard cleaning, lifeboat and rescue boat davit maintenance and testing, 6,000 hour overhaul of port and starboard main engine exhaust valves, port and starboard main engine fuel injection pumps, annual firefighting inspection and certification, inspection and overhaul of shaft brakes, ship's service diesel generator #3 overhaul, prep and paint saltwater ballast tanks 10 port and starboard, prep and paint fore peak tank, prep and paint diesel fuel marine cargo tank 7 port, prep and paint jet propellant 5 contaminated tank, prep and paint diesel fuel marine contaminated tank, tank deck non-skid renewal frames 40-50, miscellaneous steel repairs, shower panel and flooring renewals, control reversible pitch propeller system and propeller blade seal maintenance, stern tube seal maintenance, underwater hull cleaning and recoating, freeboard blast and preservation, tail shaft removal and survey, carpet, tile and terrazzo replacement, bi-annual gauge calibration, blast and paint 02 level lifeboats, pump room bilge preservation, starboard capstan overhaul, reefer plant groom, tank deck sprinkler system flush, inspection and painting of diesel fuel marine piping, sea valve and waster piece overhaul, davit modifications and installation of new lifeboats, various pump overhauls, underway replenishment station permanent repairs stations 3 and 4, various steel deck renewals, miscellaneous pipe repair, underway replenishment gear maintenance, stability test, kingpost repairs (partial) trans-alternation, trash chute removal trans-alternation, Gaylord booster heater replacement trans-alternation and fire detection and alarm system replacement trans-alternation. Work is expected to be complete by October 2020. The contract includes options which, if exercised, would bring the total contract value to $27,416,444. Funds will be obligated on May 20, 2020. Contract completion will be Oct. 26, 2020. Contract funds in the amount of $24,235,291, excluding options, are obligated for fiscal 2020 using Navy working capital funds. This contract was competitively procured, with proposals solicited via the beta.sam.gov website and two offers were received. The Military Sealift Command, Norfolk, Virginia, is the contracting activity (N32205-20-C-4003). Vet Industrial Inc.,* Bremerton, Washington, is awarded $17,305,016 for a firm-fixed-price task order (N44255-20-F-4204) under a multiple award construction contract for seismic upgrades to Building 431 at Puget Sound Naval Shipyard, Bremerton, Washington. Work will be performed in Bremerton, Washington. The work to be performed provides all labor, materials and equipment to construct seismic upgrades to Building 431, and also includes the installation of a fire suppression system throughout Building 431. Work is expected to be complete by August 2021. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $17,305,016 are obligated on this award and will expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command Northwest, Silverdale, Washington, is the contracting activity (N44255-17-D-4007). The Boeing Co., Huntington Beach, California, is awarded a $13,211,471 cost-plus-fixed-fee and cost-only modification to previously awarded contract N00024-18-C-4103, to exercise options in support of the AN/USQ-82(V) program for DDG-51 class new construction, DDG-51 class modernization, operations and maintenance, research and development and Foreign Military Sales (FMS). This contract combines purchases for the Navy (91%); the government of Japan (5%); the government of the Republic of Korea (3%); and the government of Australia (1%), under the FMS program. Work will be performed in Huntington Beach, California. AN/USQ-82(V) program is a control system network. Its purpose is to transfer mission critical data to and from users associated with combat, navigation, aviation, power, propulsion, steering, damage control systems and alarms and indicating. Work is expected to be complete by May 2021. Fiscal 2019 and 2020 other procurement (Navy) funding; 2013-2019 shipbuilding and conversion (Navy) funding; 2020 operations and maintenance (Navy) funding; 2020 research, development, test and evaluation (Navy) funding; and FMS funding in the amount of $13,211,471 will be obligated at the time of award. Funds in the amount of $400,000 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Raytheon Co., Keyport, Washington, is awarded a $10,480,184 modification to previously awarded indefinite-delivery/indefinite-quantity requirements contract N61331-17-D-0001 to exercise options for maintenance and support for the AN/AQS-20 Sonar Mine Detecting Set. The AN/AQS-20 is a towed, mine hunting and identification system for program executive office, unmanned and small combatants. Work will be performed in Portsmouth, Rhode Island (65%); Keyport, Washington (30%); and Panama City, Florida (5%). This option exercise extends the period of performance and allows for continuing support including but not limited to: repair; overhauls and other scheduled maintenance; hardware and software maintenance; tracking and resolution of obsolescence issues; technology improvements; reliability and maintainability improvements; development and incorporation of change notices and engineering change proposals; test support; engineering services; spares and repair parts; design efforts and hardware upgrades to improve system performance, sustainability, reliability, and other activities in support of the program. Work is expected to be complete by May 2021. No funding will be obligated at the time of award. The Naval Surface Warfare Center, Panama City Division, Panama City, Florida, is the contracting activity. Austal USA, Mobile, Alabama, is awarded an $8,229,522 cost-plus-fixed-fee modification to previously-awarded contract N00024-11-C-2301 for Littoral Combat Ship (LCS) industrial post-delivery support for LCS 26. Work will be performed in Mobile, Alabama (80%); and Pittsfield, Massachusetts (20%). Austal USA will provide shipboard support to implement approved engineering change proposals, approved government-responsible deficiencies identified during test and trials, crew-related activities and preventative maintenance. Austal will also provide program management support and logistics support for technical documentation affected by the work performed. Work is expected to be complete by March 2021. Fiscal 2016 shipbuilding and conversion (Navy) funding in the amount of $3,970,000 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, D.C., is the contracting activity. ARMY B.L. Harbert International LLC, Birmingham, Alabama, was awarded a $37,142,044 firm-fixed-price contract for construction of a general purpose maintenance shop. Bids were solicited via the internet with seven received. Work will be performed in Clarksville, Tennessee, with an estimated completion date of July 29, 2022. Fiscal 2020 military construction (Army) funds in the amount of $37,142,044 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-20-C-0022). Benaka,* New Brunswick, New Jersey, was awarded a $15,883,000 firm-fixed-price contract to construct a security forces and communications flight facility. Bids were solicited via the internet with six received. Work will be performed in Westhampton Beach, New York, with an estimated completion date of Nov. 30, 2021. Fiscal 2020 military construction (Army) National Guard funds in the amount of $15,883,000 were obligated at the time of the award. U.S. Property and Fiscal Office, New York, is the contracting activity (W50S8E-20-C-0001). Raptor Training Services LLC,* Oviedo, Florida, was awarded a $13,500,000 modification (P00012) to contract W900KK-14-D-0001 to accommodate known and emerging critical Special Operations Forces requirements. Bids were solicited via the internet with 16 received. Work locations and funding will be determined with each order, with an estimated completion date of Nov. 11, 2021. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity. Systems Products and Solutions Inc., Huntsville, Alabama, was awarded a $13,475,295 modification (000103) to blanket purchase agreement W31P4Q-18-A-0094 for logistical support services for U.S. Army Material Command. Work will be performed in Huntsville, Alabama, with an estimated completion date of May 20, 2021. Fiscal 2020 Army working capital and operations and maintenance (Army) funds in the amount of $13,475,295 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. B&K Construction,* Mandeville, Louisiana, was awarded a $7,941,412 modification (P00001) to contract W912P8-19-C-0071 for drainage canal work. Work will be performed in New Orleans, Louisiana, with an estimated completion date of Dec. 13, 2022. Fiscal 2020 civil operations and maintenance funds in the amount of $7,941,412 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity. (Awarded May 18, 2020) U.S. TRANSPORTATION COMMAND Vane Line Bunkering Inc., Baltimore, Maryland, has been awarded a firm fixed-price contract, HTC711-20-C-W003, in the estimated amount of $26,662,956. The contract provides transportation of bulk jet fuel and marine diesel by tug and barge for the Defense Logistics Agency-Energy in the Atlantic and Gulf Coast regions. The location of performance is ports and points along the coast as well as inland and coastal waterways from Texas to Maine. It includes support to Guantanamo Bay, Cuba. The Air Force and Navy use this fuel for cargo and passenger aircraft delivering supplies to the warfighters conducting overseas contingency operations as well as routine operations. Further, the fuel supports aircrew training, crisis action response for natural disasters and threats to the homeland, and ultimately readiness which directly correlates to the nation's warfighting capabilities. Additionally, fuel provided under this contract supports the Presidential Airlift Group at Joint Base Andrews, Maryland. The contract base period of performance is from Sept. 1, 2020, to Aug. 31, 2021. Fiscal 2020 defense working capital funds were obligated at award. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. DEFENSE LOGISTICS AGENCY Fresh Pack Produce,* Denver, Colorado, has been awarded a maximum $12,600,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for produce. This was a competitive acquisition with two responses received. This is a four-year, six-month contract with no option periods. Locations of performance are Colorado and Wyoming, with a Nov. 19, 2024, performance completion date. Using customers are Army, Air Force and Air National Guard. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-P354). Propper International Inc., Cabo Rojo, Puerto Rico, has been awarded a maximum $11,965,427 modification (P00007) exercising the first one-year option period of a one-year base contract (SPE1C1-19-D-1168) with two one-year option periods for hydration system and corpsman assault packs. This is a firm-fixed price, indefinite-quantity contract. Location of performance is Puerto Rico, with a May 31, 2021, performance completion date. Using military service is Marine Corps. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1168). Rocky Brands Inc., Nelsonville, Ohio, has been awarded a maximum $9,075,661 modification (P00003) exercising the first one-year option period of a one-year base contract (SPE1C1-19-D-1150) with two one-year option periods for certified safety boots. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are Ohio and Puerto Rico, with a May 20, 2021, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. Creighton AB Inc.,* Reidsville, North Carolina, has been awarded a maximum $8,256,325 modification (P00007) exercising the first one-year option period of a one-year base contract (SPE1C1-20-D-1211) with four one-year option periods for dress trousers. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are New York and North Carolina, with a May 22, 2021, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. AIR FORCE Dataminr Inc., New York, New York, has been awarded a $12,180,000 firm-fixed-price contract to provide web-based, mobile and email alerting of events and breaking news based on global sources of publically available information (PAI) to all Department of Defense (DOD) authorized users for force protection and first response via a commercially-available subscription license with 24/7/365 access to alerting for DOD authorized users and maintain compliance with the terms of service and data use policies of all third party PAI data sources that are used to create news alerts. Work will be performed in New York, New York, and is expected to be completed Aug. 18, 2020. Fiscal 2020 operations and maintenance funds in the amount of $4,000,000 will be obligated at the time of award. Air Force District of Washington, Joint Base Andrews, Maryland, is the contracting activity (FA7014-20-C-0022). Rockwell Collins Inc., Cedar Rapids, Iowa, has been awarded an $11,916,073 firm-fixed-price and cost-reimbursable modification (P00101) to exercise the contractor logistics support (CLS) and contractor logistics support performance based incentive options previously awarded on contract FA8678-10-C-0058 to support the sustainment of the Common Range Integrated Instrumentation System (CRIIS) for upgrading the test and evaluation instrumentation at Air Force, Navy and Army test ranges. The objective of the CRIIS CLS is to provide repairs and sustainment management for the CRIIS equipment while verifying sustainment system performance specification requirements. CLS will ensure availability and maintainability of CRIIS equipment at Eglin Air Force Base, Florida; Edwards AFB, California; Naval Air Station, Patuxent River, Maryland; White Sands Missile Range, New Mexico; Nevada Test and Training Range, Nevada; Naval Air Weapons Station, China Lake, California; and Naval Air Station, Point Mugu, California. The contracting action is the result of a competitive acquisition and two offers were received. Work will be performed at Rockwell Collins facilities; Cedar Rapids, Iowa; and Richardson, Texas, and is expected to be completed by May 31, 2025. Fiscal 2020 and 2021 Department of Defense Central Test and Evaluation Investment Program research, development, test, and evaluation funds in the amount of $1,279,875 are being obligated at the time of award. Total cumulative face value of the contract is $340,594,567. Air Force Life Cycle Management Center, Eglin AFB, Florida, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2193451/source/GovDelivery/

By: Valerie Insinna   15 hours ago WASHINGTON — General Electric, Rolls-Royce, and Pratt & Whitney will compete for the chance to outfit the U.S. Air Force's B-52 bomber fleet with new engines, with a contract award projected for June 2021. The Air Force released a request for proposals for the B-52 Commercial Engine Replacement Program to the three companies on May 19. The engine makers are already under contract to create digital prototypes, and they have until July 22 to submit final proposals, the solicitation stated. The Air Force operates 76 B-52s, each outfitted with eight TF33 engines. The service plans to order 608 new engines, plus spares and support, from the winner of the competition. The public version of the RFP obscures the estimated value of the program, which is projected to extend from 2021 to 2035. Pratt & Whitney, which manufactured the TF33 currently onboard the B-52, has stated it will propose the PW800. “Its industry-leading reliability, robust sustainment infrastructure, and significant fuel efficiency savings will greatly improve the legendary bomber and keep it flying for decades to come,” said Chris Johnson, Pratt & Whitney's executive director for mobility and diverse engine programs. "Our unique experience with the B-52, coupled with our expertise integrating commercial engines onto military applications, will deliver a low-risk, high-performance engine to power the Stratofortress fleet through 2050.” GE Aviation will put forward the CF34-10 and Passport engines, spokesman David Wilson said. “GE is the only company to have been involved in re-engining U.S. Air Force aircraft three times over,” he said. “Add in our deep experience powering six strategic bombers, entrenched support of air combat and the reverence we have for the role we play in protecting this country, and GE is the clear partner to ensure the B-52 is ready at all times for mission critical.” Rolls-Royce intends to offer its F130 engine, the company confirmed. “Rolls-Royce is excited to move to the proposal stage of the campaign and ready to demonstrate that the Rolls-Royce F130 engine is the perfect fit for the B-52,” Craig McVay, senior vice president for Rolls-Royce Defense, said in a statement. “The F130 is a highly reliable and proven engine which is already in commercial production. Our team is focused and energized, and eager to compete for the B-52 Commercial Engine Replacement Program and provide the best possible solution for the U.S. Air Force and the key missions of the B-52 weapon system.” The Air Force plans to operate the B-52 into the 2050s and sees new commercial engines as a way to reduce fuel burn and the time it takes to maintain the bomber. Last year, B-52 maintainers at Barksdale Air Force Base, Louisiana, told Defense News that modern engines would make it easier for crews to diagnose problems and make needed repairs. “I would like to know if I need to take that aircraft down out of the schedule and give it a new engine ahead of time,” said Lt. Col. Tiffany Arnold, 2nd Maintenance Squadron commander. “We could prioritize, we could understand the patterns of the engines in a way that we could maintain them better. And hopefully the new motor, whoever designs it, will have a shorter mean time between failure, and we can fly them longer.” https://www.defensenews.com/air/2020/05/20/the-air-force-launches-a-contest-to-replace-the-b-52s-engine/

Michael Bruno May 20, 2020 If you like the cadre of big aerospace and defense companies now, you are going to love them later. Among the major trends the novel coronavirus is expected to catalyze within aerospace and defense (A&D) manufacturing is that the big will get bigger by gobbling up others or taking back more work. In the next few years, vertical integration should pick up momentum, according to several executives and consultants. After decades of OEMs, primes and top-tier companies outsourcing major work on their programs, many see the pendulum swinging back to bringing more of it in-house. “We've already seen signs of more vertical integration coming through the industry and potentially where some of that could be accelerated as we work through the crisis,” says one advisor. Boeing started this a few years ago as it insourced avionics and other niche segments. Major consolidation picked up last year with the mergers of Raytheon and United Technologies Corp. and L3 Technologies and Harris Corp. Now, whether it be protecting profits or securing supply, the reasons to own more of the work are burgeoning as industry is refashioned in the COVID-19 crisis. For starters, aerospace suppliers are facing diminished economies of scale but a greater share of fixed-cost in production, with a likely loss in profitability and competitiveness, say Roland Berger advisors Robert Thomson and Manfred Hader. So-called organic top-line increases, through insourcing and acquisition of additional work packages, are possible but only to a limited degree. A fixed-cost reduction likewise is only feasible up to a certain level due to equipment and overhead structures. So consolidation is an important lever to consider. Part and parcel to that will be the financial distress into which suppliers in Tier 2 and below fall—and the opportunity to roll them up. Top CEOs are watching. Speaking May 13 to an investor conference, Honeywell International Chairman, CEO and President Darius Adamczyk cited an inflection point. “For a couple of years now, I've been talking about how it is a seller's market, not a buyer's market,” he told Goldman Sachs. “But that calculus may change in the second half of the year, and I think it could become a bit more of a buyer's market, and the valuations may be better and different. That's something that we want to partake in.” Feeding the phenomenon could be a desire to bring supply closer to home, both for reliability and geopolitical reasons. Suppliers overseas once were revered for their low-cost footprint, but suddenly they are seen as vulnerable to pandemics, economic stress and global trade wars. In turn, consultants expect industry leaders to take another look at favoring local regions. Even in the defense realm, which for now is considered safer during this downturn, there is talk of larger firms becoming even more powerful. “Large pure-plays should come through the pandemic relatively unscathed but may be looking at lower spending growth outlooks,” Capital Alpha Partners Managing Director Byron Callan noted May 13. “Mergers and acquisitions may thus be more important in delivering growth—even though it's not organic growth—in 2021-25.” So where to look for vertical integration and consolidation from the top? Clues are already emerging, according to advisor presentations. First, look at niches where top suppliers already are prevalent—environmental and flight-control systems, landing gear, electrical power and interiors—and others where they are not there yet, including maintenance, repair and overhaul, logistics, aerostructures and engines. Next, look at the supply base from the perspective of a top supplier. Who is distressed or drawing down credit lines? What revenue mix do certain potential targets have—e.g., commercial vs. defense, products vs. services or aging vs. next-generation platforms? Finally, consider where the new nucleus of consolidation will be. Will more “super Tier 1s” such as Raytheon Technologies emerge, or will conglomeration occur among Tier 2 and 3 providers? The first would allow rationalization of capacity for detailed part production from Tier 1 to 3, for instance, with the super Tier 1s able to secure through-value-chain control and prevent subtier supplier failure, according to Roland Berger. The latter likely would be opportunistically driven rather than following any overarching industry logic. For smaller suppliers, the questions are more concise, as one consultant says. Do you want to be a buyer, a seller or risk it as is? A simpler question, for sure, but no less difficult to answer. https://aviationweek.com/aerospace/manufacturing-supply-chain/manufacturing-reshapes-after-covid-19-size-will-matter

By: Valerie Insinna   20 hours ago WASHINGTON — Lockheed Martin will throttle back the pace of F-35 production on May 23, leaving it anywhere from 18 to 24 jets short of the 141 scheduled for delivery this year. The COVID-19 pandemic has made it more difficult for Lockheed's supply chain to make components on time, and as a result the company is moving to an adjusted work schedule where production will slow over the next three months, said Greg Ulmer, Lockheed's vice president for the F-35 program. Ultimately, Lockheed aims to accelerate production as soon as possible and hopes to decrease the number of aircraft that will delivered late. However, Ulmer said there are too many variables to say precisely how long buyers will be left waiting for their F-35s. “If I have the ability to speed up or recover sooner, then I will do so,” Ulmer said. “If there are other unknown COVID-19 impacts that I don't know about that come on the horizon — I don't know that either. ... As we go forward, probably late summer or early fall, we'll have a pretty good sense of where we're going to be.” Beginning on May 23, Lockheed will divide the approximately 2,500 employees who staff the F-35 production line in Fort Worth, Texas, into three groups, moving them to new schedule where each group works for two weeks and then has a week off. After one three-week rotation, the company will determine whether the system is successful and can either alter the schedule or continue until Sept. 4, it said in a statement. Rotating smaller groups of employees on the line allows Lockheed to move to a slower pace of operations while at the same time ensuring that workers retain their expertise and don't need to be retrained when the production rate returns to normal, Ulmer said. “It really maximizes our ability to recover production on the backside and retain our workforce with no loss of learning.” Lockheed Martin executives first disclosed that F-35 deliveries could be delayed during an April 21 earnings call with investors. “There are local distancing requirements that are being more stringently applied across the globe. There is workforce disruption,” Kenneth Possenriede, the company's chief financial officer, said at the time. “We've actually had some issues with shipping constraints.” Most of the supply chain pressure on the program stems from constraints on low-tier suppliers that produce components that feed into larger portions of the F-35. While the production line tries to do as much work on each section as possible, workers are having to slow down and wait for missing parts to arrive, Ulmer said. Lockheed has also had challenges getting connectors for the jet on time — another problem that makes it difficult for the company to merge F-35 sub-assemblies into a finished aircraft, Ulmer said. Once aircraft are completed and go through acceptance testing, the sequence of deliveries will remain the same, he said. The slowdown of the F-35's production rate comes days after President Donald Trump voiced support for moving more of the jet's production to the United States. Currently, international partners who helped fund development of the F-35 can compete for work on the jet, reducing the cost of the aircraft and giving foreign buyers an industrial incentive to support the program. “The problem is if we have a problem with a country, you can't make the jet. We get parts from all over the place. It's so crazy. We should make everything in the United States,” Trump said on Thursday. However, the industrial challenges currently faced by Lockheed do not appear to be caused by the international supply base. Ulmer said European suppliers, who were hardest hit before the United States, are now rebounding from the pandemic. “I really see Europe kind of [on the] leading edge of the recovery side of this,” he said. In particular, northern Italy struggled with high numbers of confirmed COVID-19 cases, leading Italian defense firm Leonardo, which runs an F-35 final assembly and check out plant in Cameri, to shut down operations over a two day period in March to clean the facility. With the number of new cases receding, Italy began reopening nonessential businesses this month. “Leonardo today is north of 90 percent manned, fully operating. They're pretty much back to normal operations,” Ulmer said. The ongoing expulsion of Turkish suppliers from the F-35 program is also unlikely to be affected by the production slowdown at Fort Worth, as Lockheed has already identified companies to take over that work, he said. “With the vast majority of those, that alternate sourcing has been accomplished. I really don't see this as an impact to that." Ramping production back up Unless COVID-19 cases spike in the coming months, Lockheed believes it will be able to return workers to a normal production schedule in the late summer or early fall. What will vary is timing for when suppliers can return to their usual production rates, and whether those suppliers have the capacity to expedite the manufacturing of key parts, Ulmer said. Once the supply chain has fully recovered, it will take the Fort Wort line two to three months to resume full rate production. “There are 1,900 suppliers across the program” in the United States, Ulmer said. “So we take all that information in, we determine what rate they can deliver to, we determine if they have any kind of constraints we can help them deal with, and then we have to balance that into the production system to dial in the production rate we can execute.” “I am optimistic that the majority of industry is on the backside. I'm reluctant to say that because there could be a rebound,” Ulmer said, “but we're at the very back end of the impact.” https://www.defensenews.com/breaking-news/2020/05/19/lockheed-to-slow-f-35-production-as-supply-chain-struggles-to-keep-up

Opponents of defense spending may cite the economic consequences of COVID-19 — huge deficits and ballooning national debt— in an effort to slash the Department of Defense's budget. If they succeed, American military supremacy will erode further, inviting aggression from adversaries and decisively undermining American security. By BRADLEY BOWMANon May 20, 2020 at 4:01 AM Even as many Americans huddle in their homes to avoid the coronavirus, our adversaries have continued to use military power to test and undermine the United States. Since the crisis began, Moscow has sent bombers to probe American air defenses near Alaska. China escalated its belligerent activity in the South China Sea. Iran has harassed U.S. naval vessels in international waters. North Korea launched a barrage of missiles. Hackers have pummeled defense networks and suppliers with cyberattacks. All the while, terrorists have continued attacking U.S. and partner forces in Iraq and Afghanistan. Authoritarians and terrorists apparently did not get the memo that they were supposed to play nice during the pandemic. They clearly still believe they can advance their interests and undermine ours with the employment of cyber and kinetic military power. Despite this, opponents of defense spending may cite the economic consequences of COVID-19 — huge deficits and ballooning national debt— in an effort to slash the Department of Defense's budget. If they succeed, American military supremacy will erode further, inviting aggression from adversaries and decisively undermining American security. To be clear, the United States did not find itself in this tenuous position overnight. America's military edge has been eroding for years. For many years after 9/11, Washington repeatedly failed to provide the Pentagon with the timely, predictable and sufficient funding necessary to maintain current readiness and modernize its forces. When confronted with this difficult choice, defense leaders were often forced to postpone vital weapon modernization research and development programs to resource and support the next units to deploy. Meanwhile, Beijing and Moscow studied how the United States fights wars and undertook comprehensive efforts to modernize their weapons and revamp their operational concepts. So, by 2018, the military balance of power had shifted so significantly that the National Defense Strategy (NDS) Commission — a group of bipartisan national security experts not prone to hyperbole — sounded the alarm. “The security and wellbeing of the United States are at greater risk than at any time in decades,” they warned. “America's military superiority—the hard-power backbone of its global influence and national security—has eroded to a dangerous degree.” Thankfully, the U.S. has now emerged from what the 2018 National Defense Strategy called a “period of strategic atrophy” and taken concerted action. With increased defense funding in the last few years and a focus on great power competition, the Department of Defense is undertaking the most significant U.S. military modernization effort in decades. In order to win the intense military technology competition with Beijing and others, the Pentagon is focusing its research and development on artificial intelligence, biotechnology, autonomy, cyber, directed energy, hypersonics, space and 5G. Simultaneously, the Pentagon and combatant commands are working to develop a new joint concept to employ these new weapons. Despite these positive efforts, U.S. military supremacy has continued to erode. Consider Indo-Pacific Command's report submitted in March warning that the military balance of power with China continues to become “more unfavorable.” The United States, it said, is accumulating “additional risk that may embolden our adversaries to attempt to unilaterally change the status quo before the U.S. could muster an effective response.” This is because America has not yet deployed most of the weapons and capabilities it has been developing and is still crafting its new joint warfighting concept. To be sure, each of the U.S. military services are sprinting to field key systems, weapons, and capabilities in the next few years. But the Chinese Communist Party and its People's Liberation Army are sprinting too, and there is no time to waste. The bipartisan experts on the NDS Commission recommended that “Congress increase the base defense budget at an average rate of three to five percent above inflation” in the coming years. If Congress ignores its own commission and slashes defense spending, U.S. military supremacy will continue to erode and could eventually disappear. The far left and libertarians often respond to such arguments by emphasizing the size of the U.S. defense budget. What they fail to mention is that U.S. defense spending, measured either as a percentage of gross domestic product or a percentage of federal outlays, is near post-World War II lows. That doesn't mean assertive congressional oversight is not needed; there is certainly room for improvement at the Pentagon. Indeed, defense leaders must continue to ruthlessly establish priorities, eliminate waste, and implement efficiencies—while credibly demonstrating tangible stewardship to Congress and taxpayers. One should not dismiss the severe economic impacts of the coronavirus. The Congressional Budget Office has highlighted the potentially dire consequences for the federal deficit and debt. But Medicare, Medicaid, and Social Security's mandatory spending — not discretionary defense spending — is the primary driver, by far, of fiscal unsustainability. If the American people and their representatives in Congress provide the Department of Defense sufficient resources over the next few years, the U.S. military will be able to complete and field vital modernization programs. This will ensure U.S. troops have what they need and will enable the United States to re-assert the military superiority that has been so beneficial to peace, prosperity, and security. The coronavirus has certainly demonstrated the need for better domestic health security programs and has delivered a body blow to the U.S. economy. But if political leaders respond by slashing the Department of Defense's budget, Washington risks making American military superiority yet another casualty of the coronavirus. Bradley Bowman, former advisor to Sens. Todd Young and Kelly Ayotte, is senior director of the Center on Military and Political Power at the Foundation for Defense of Democracies. https://breakingdefense.com/2020/05/dont-let-the-covid-deficit-hurt-defense-spending

May 19, 2020 - Falls Church, Va. – PAE (NASDAQ: PAE, PAEWW), a global leader in delivering smart solutions to the U.S. government and its allies, was awarded the National Aviation Maintenance and Logistics Services contract by U.S. Customs and Border Protection, an agency of the U.S. Department of Homeland Security. The contract has a one-year base period of performance with nine one-year options, a potential three-month extension and an estimated total value of more than $1.26 billion. PAE President and CEO John Heller said the award recognizes PAE's dependability and specialized expertise for aircraft maintenance. “With our long track record serving CBP's aircraft maintenance needs, PAE has proven to be a trusted partner in supporting U.S. national security,” Heller said. “We look forward to continuing our support to this critical national security customer as we apply our innovative solutions supporting the CBP mission and fleet of over 200 aircraft.” “This is truly a team win and a tribute to the more than 650 dedicated men and women on this program,” said PAE Vice President of CBP Program Management Rob Ulses. “These hard-working individuals have established a real partnership with CBP that allows us not only to support day-to-day operations, but to adapt and react to special missions.” PAE will continue to provide safe and ready aircraft to ensure the U.S. government meets operational commitments to safeguard America's borders. PAE will provide this essential support from aviation operational sites at military bases, civilian airfields and alternate locations across the United States. The broad scope of work extends from scheduled and unscheduled aircraft maintenance and repair to managing fueling, logistics and supplies. About PAE For 65 years, PAE has tackled the world's toughest challenges to deliver agile and steadfast solutions to the U.S. government and its allies. With a global workforce of about 20,000 on all seven continents and in approximately 60 countries, PAE delivers a broad range of operational support services to meet the critical needs of our clients. Our headquarters is in Falls Church, Virginia. Find us online at pae.com, on Facebook, Twitter and LinkedIn. Forward-Looking Statements This press release may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about PAE's possible or assumed future results of operations, financial results, backlog, estimation of resources for contracts, strategy for and management of growth, needs for additional capital, risks related to U.S. government contracting generally, including congressional approval of appropriations, and contract delays or cancellations caused by competitors' bid protests of contract awards received by us. These forward-looking statements are based on PAE's management's current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside PAE's management's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements included in this release speak only as of the date of this release. PAE does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date of this release except as may be required by the federal securities laws. For media inquiries regarding PAE, contact: Terrence Nowlin Senior Communications Manager PAE 703-656-7423 terrence.nowlin@pae.com For investor inquiries regarding PAE, contact: Mark Zindler Vice President, Investor Relations PAE 703-717-6017 mark.zindler@pae.com View source version on PAE: https://www.pae.com/news/pae-awarded-ten-year-contract-provide-aircraft-maintenance-us-customs-and-border-protection