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  • Choosing the right commercial tech for government

    May 19, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Choosing the right commercial tech for government

    By: Meagan Metzger In today's crisis-stricken world, it is heartening to see leaders recognizing the importance of government support for innovative, private sector solutions to the problems facing the defense industry. For the Department of Defense, reforming policies and refocusing priorities so that commercial tech can be successfully implemented to support the defense industry's mission is essential. The DoD's endorsement not only encourages emerging tech startups to consider government compliance and scale in their business models from the very beginning; it also protects our national security — and service members in uniform — by putting the most innovative technology into play. But creating more opportunities for commercial tech companies to secure government contracts is only the beginning. For government agencies to successfully take advantage of innovative tech from the private sector, a few things need to happen — and the sooner, the better. First, the government needs to look beyond legacy contracts. As has been noted by venture capital leaders, the announced provisions of the coronavirus relief legislation, the CARES Act, “to streamline the Defense Department contracting process” currently apply only to contracts worth $100 million or more. This excludes emerging commercially successful tech companies that could have a significant impact at the government level. Separate, though related, are needed reforms to the Small Business Innovation Research program. The National Defense Authorization Act for fiscal 2020 provides additional SBIR flexibility for small businesses that are more than 50 percent owned by venture capital, but the DoD has yet to fully promulgate this new flexibility authority. Until eligibility standards are adjusted, the DoD is missing the chance to work with proven, VC-backed companies. Of course not all commercial tech companies are equipped to support government missions; and to ignore the importance of a rigorous evaluation process is even more harmful than ignoring commercial tech all together. Finding emerging tech is easy. Evaluating and equipping tech companies for success in government is hard, particularly when national security is a critical concern. The COVID-19 crisis has made it even more apparent that government agencies need to be able to implement tech solutions quickly and trust that they will perform as expected. A tech company with proven success in the private sector may draw the government's attention and show that it can deliver, but there are other equally important indicators to consider when determining if a company is capable of performing as expected at the government level. The Pentagon, like any government agency, must rely on data-backed advice and expertise to identify which commercial tech solutions are most likely to succeed in the federal market. Finding technology companies should not be a quantity play, but focus more on fit and quality. Moving fast requires working with private sector partners who have experience vetting tech companies for government contracts, which we've seen leaders do, like Space and Missile Systems Center's Air Force Col. Russell Teehan and the head of Air Force Program Executive Office Digital Steven Wert. Partners that are federally focused — with deep knowledge of government problem sets and missions — can identify which tech companies are viable technically and will be viable in the federal market. Assessing tech's viability requires specific experience evaluating a set of qualitative characteristics unique to this market, in addition to the typical “can they work with government" questions like: “Where is the code compiled?” Government agencies should also look to VCs and accelerators that can specifically guide tech companies through the government market contracting process and equip them to succeed in the long term. For instance, in 2019, the United States Air Force worked with Dcode to scout technology for the service's Multi-Domain Operations Challenge, and seven of the 30 finalists were companies that had completed the Dcode accelerator to prepare for success in the federal market. Supporting these tech companies requires more than just a singular contract award. To get over the “valley of death,” companies have to understand everything from compliance to how to staff, rework operational processes and market effectively, to name a few. There is no question that working with the right emerging tech companies is imperative for the DoD and other government agencies. But at a moment in history when time is particularly of the essence, there is no room for trial and error when it comes to identifying which tech companies can meet the government's specific needs. By working with private sector partners that have extensive government expertise and proven results, the DoD can confidently implement innovative technology that addresses its most critical needs in a time of crises and well into the future. Meagan Metzger is the founder and CEO of Dcode. She also serves on an advisory board for Booz Allen Hamilton, and another advisory board for the Defense Entrepreneurs Forum. She previously worked as chief operating officer of a mobile and cloud company, as well as chief strategy officer at an IT consultancy. https://www.defensenews.com/opinion/commentary/2020/05/14/choosing-the-right-commercial-tech-for-government/

  • Intelsat declares bankruptcy

    May 19, 2020 | International, Aerospace, C4ISR

    Intelsat declares bankruptcy

    Nathan Strout and Valerie Insinna Satellite communications provider Intelsat declared bankruptcy May 13, although its subsidiary which provides services to the Department of Defense is not part of the Chapter 11 proceedings. CEO Stephen Spengler spun the action as a positive move, claiming it gave the company more financial flexibility for the Federal Communication Commission's clearing of C-Band spectrum to make way for 5G uses. Major satellite communications companies, including Intelsat, saw their stocks take a massive hit last fall when FCC Chairman Ajit Pai announced plans for a public auctioning of C-Band spectrum, which C-Band holders like Intelsat had hoped to sell off directly. The company says it will need to spend more than $1 billion to meet the FCC's deadlines for clearing out C-Band spectrum, which it needs to do in order to be eligible for $4.87 billion in accelerated relocation payments. Wiping the company's significant legacy debt off the books will help it accomplish those actions, said Spengler. “We intend to move forward with the accelerated clearing of C-band spectrum in the United States and to achieve a comprehensive solution that would result in a stronger balance sheet,” said Spengler in a statement. “This will position us to invest and pursue our strategic growth objectives, build on our strengths, and serve the mission-critical needs of our customers with additional resources and wind in our sails.” Subject to court approval, the company said in a statement it had already secured $1 billion in new financing in debtor-in-position funds, giving it the liquidity to continue current operations and finance C-Band clearing costs spurred by the Federal Communications Commission. The company claims that day-to-day operations will not be impacted by the restructuring process—it will continue to launch new satellites and invest in its network with no changes planned. The Chapter 11 petitions for Intelsat and some of its subsidiaries were filed with the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division. However, Intelsat General, which provides satellite communications to the U.S. military and allied military customers, is not part of the bankruptcy proceedings. “The immediate concern (for DoD) is continuity of operations and it sounds like that is not going to be a big issue,” said Todd Harrison, director of the Aerospace Security Project at CSIS. “The longer term concern for DoD is how does Intelsat eventually emerge from bankruptcy, and is there any kind of transfer in ownership or an increase in ownership stake that would be concerning from a national security perspective.” Specifically, investment from Chinese companies could raise alarms for the military and the Committee on Foreign Investment in the United States. “I think that's something that DoD will be watching, that Treasury will be watching,” he said. “It will be a positive side from DoD's perspective if wherever the capital is coming from is from a U.S. source.” When asked about potential Chinese investment in a bankrupt Intelsat May 14, U.S. Air Force Assistant Secretary for Acquisition, Technology and Logistics Will Roper acknowledged he had concerns. “It's a topic that's harder for me to talk about, but we are mindful of adversarial tactics in this period. Every crisis is an opportunity, and with companies coming under duress it is an opportunity for predatorial tactics targeting IP that countries would not have access to otherwise," he told reporters. Furthermore, Roper noted that the decision to financially support a company like Intelsat to prevent foreign investment requires a different calculus than a traditional stimulus. “The way to engage if we risk losing IP to a nation for whom it's not in our interest to have it, it's a very different strategy (than whether we) should engage to prop up a company through stimulus," he said. "When the former appears to happen, then we need to pivot into a different gear than we would be in the latter. We simply cannot do stimulus for every company that is in duress right now.” Intelsat isn't the only major satellite company to declare bankruptcy. OneWeb—who have been building a proliferated low earth orbit constellation to provide broadband—declared bankruptcy in March. DoD had been exploring utilizing OneWeb for communications in the Arctic among other things, and Lt. Gen. David Thompson, vice commander of Headquarters Space Force, noted earlier this week that the department's new Space Acquisition Council was looking into helping OneWeb and other financially vulnerable space companies impacted by COVID-19. Intelsat noted in a statement that several of its end markets had been impacted by COVID-19. Roper said he was concerned with how COVID-19 was disproportionately affecting space and aviation companies, which rely more heavily on commercial revenue than other parts of the defense industrial base. “That's why we've taken such aggressive means to accelerate contract awards," said Roper. “We're worried about space, as well, especially microelectronics. All of the Space Acquisition Council shares that concern. And as we see the Chapter 11s being filed—we're tracking them—but our concern as an acquisition enterprise has got to be industrial base health and not picking winners or losers with specific companies. It's ensuring that we are engaging to have a healthy industrial base on the other side." Roper added that he had approved the acceleration of a major satellite award that should be announced this week as part of the department's efforts to increase the flow of funding to defense companies during COVID-19. https://www.c4isrnet.com/battlefield-tech/space/2020/05/14/intelsat-declares-bankruptcy/

  • MDA: All-Domain C2 Key To Countering Hypersonic Missiles

    May 19, 2020 | Local, Aerospace

    MDA: All-Domain C2 Key To Countering Hypersonic Missiles

    "We'll take anybody's sensors," MDA's John Bier said, "as long as it contributes to the missile warning, missile defense and space domain environment." By THERESA HITCHENSon May 14, 2020 at 2:44 PM WASHINGTON: Senior Missile Defense Agency officials say Joint All-Domain Command and Control (JADC2) will be fundamental to rapidly and seamlessly integrating future capability to track and intercept hypersonic and cruise missiles into its current architecture focused on ballistic missiles. “We need the ability to globally see, track and engage the threats in a multispectral environment in real time with persistent capabilities, so that we can provide the right data to the right targets,” MDA's chief architect Stan Stafira said. MDA has been able to develop its C2 network to link various layers in the overarching US missile defense architecture, but that integration has been achieved largely through “brute force,” John Bier, MDA program director for C2BMC, told a webinar sponsored by the Missile Defense Advocacy Association (MDAA) yesterday. “Where JADC2 is trying to drive the C2 community is: how do you make that easier?” MDA is working on first assessing how to tie in its current Command and Control, Battle Management and Communications (C2BMC) architecture with JADC2 as it develops, then look at how to integrate its future planned capabilities “when applicable,” a MDA spokesperson clarified in an email. Toward that end, MDA is planning on participating in the Air Force's second “On Ramp” exercise of the Advanced Battle Management System (ABMS) family of systems initiative aimed at developing a number of critical technologies to underpin JADC2, Bier said. The exercise, which would have involved a space-oriented scenario, was planned for last month, but has been postponed due to the COVID-19 crisis. After first being slipped to June, it now is slated for Aug. 31-Sept. 4 moved back to A MDA fully expects to be involved in the exercise, although Bier did not elaborate on exactly what role the agency would play or what systems might be involved. He said that MDA is working on spiral development of new technologies on an every two- to three-year cycle, but hopes to move even faster to integrate new capabilities. Part of that effort will involve moving to open standards, just as the ABMS program is doing now. “We'll take anybody's sensors,” Bier said, “as long as it contributes to the missile warning, missile defense, and space domain environment.” The ABMS On Ramp exercises are “great integration environments” to test out the new standards, he added. Bier said that up to now MDA has been successfully able to develop and manage a C2BMC system across the missile defense enterprise — one that links strategic systems such as the Ground-Based Midcourse Defense (GBMD) interceptors in silos in California and Alaska with regionally deployed, tactical systems such as Patriot batteries — in large part because of its special governance structure and flexible contractual authorities. Although Bier didn't say it, the obvious inference is that DoD and the Joint Chiefs of Staff may want to consider how to centralize authority over various service C2 and battle management programs and projects that will need to connect to make JADC2 a reality. “The JADC2 environment allows us to bring in multiple services along with MDA and the Intelligence Community and discuss these issues,” he said. https://breakingdefense.com/2020/05/mda-all-domain-c2-key-to-countering-hypersonic-missiles

  • Coronavirus Hampering Defense Contractor Operations, Reader Survey Finds

    May 19, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Coronavirus Hampering Defense Contractor Operations, Reader Survey Finds

    t's harder to win business amid a pandemic, said one-third of industry respondents in a Defense One reader survey. Federal contractors and private-sector workers say the coronavirus pandemic is hurting business and their ability to compete for government work, a new survey of Defense One readers has found. More than 75 percent said COVID-19 had a moderate, major, or extreme impact on their company's day-to-day operations. About 22 percent said the virus had a minimal impact; 2 percent, no impact. Nearly 60 percent of the respondents said coronavirus has forced them to slow or pause production. Nearly 40 percent said their business has seen disruptions to its cash flow. Defense One commissioned the survey, which was conducted by Government Business Council, a division of Defense One's parent company, Government Executive Media Group. The survey was conducted May 8-14 and received 677 responses, yielding a 5 percent margin of error. Of those, 313 self-identified as a government contractor or private sector employee. Related: 62% Disapprove of Trump's Coronavirus Response, Reader Survey Finds In March, the Pentagon began paying its contractors more money up front so these large firms could send more money to the smaller companies that make up their vast and diverse supply chains. Collectively, companies have sent or pledged to send billions of dollars to their suppliers in a quicker fashion. Still, Ellen Lord, defense undersecretary for acquisition and sustainment, said last month that she was expecting a three-month slowdown in weapons deliveries as companies faced shutdowns and modified their processes and procedures to comply with social distancing and other guidelines. About 30 percent of contractors and private sector workers said their business has experienced supply-chain disruptions. While more than one-third of respondents said social distancing has hurt their company's ability to compete for government contracts, more than half said social distancing has made no difference in their company's ability to win contracts and 12 percent said restrictions have helped their company's competitive advantage. More than 17 percent said their business has had to lay off employees; 18 percent said their companies have furloughed workers. One-quarter of respondents said lack of access to senior officials and decision makers and the inability to attend networking events has affected their business. With conferences, trade shows and other in-person events on hold indefinitely, trade associations and event organizers have looked for virtual ways to replicate not only speaker presentations, but the sideline discussions and other types of networking that many consider essential to doing business in the defense sector. “Your ability to pull somebody off the stage coming off a panel, the ability to ask a question in the question-and-answer period in this environment, is a little bit challenging,” Hawk Carlisle, a retired Air Force general who is CEO of National Defense Industrial Association, said in an interview late last month. “It is having an effect and I do believe the longer this goes on it will continue to have an effect.” This week, NDIA, which represents 1,700 large and small companies and has 70,000 individual members, became the first to transform a large conference and trade show into a fully virtual conference. Typically, its SOFIC event is held in Tampa, near the U.S. Special Operations Command headquarters. This year, the speeches and panel discussions were broadcast online. What's more, the organization facilitated meetings between companies and government officials. NDIA, which usually hosts dozens of events around the country each year, is considering new ways to hold its gatherings, including hosting hybrid events, with some people in attendance and others attending virtually, Carlisle said. https://www.defenseone.com/business/2020/05/coronavirus-hampering-defense-contractor-operations-reader-survey-finds

  • A $17 Billion Pot of National-Security Stimulus Aid Goes Begging

    May 19, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    A $17 Billion Pot of National-Security Stimulus Aid Goes Begging

    By David McLaughlin and Anthony Capaccio There's a $17 billion pot of money in the pandemic aid package for companies vital to national security -- and no one seems to want it. The $2 trillion rescue package Congress adopted in late March includes loans and loan guarantees specifically for companies “critical to maintaining national security.” The funds at first were seen as largely directed at Boeing Co., which at the time had been pleading for a government bailout. But after selling $25 billion in bonds to investors, the aircraft maker turned down the aid, which would have come with strings attached that it didn't like. With the $17 billion up for grabs, the U.S. defense industry is asking the Trump administration to change the criteria for getting some of it, arguing that the terms are too strict. The Treasury Department, which has sole authority over the $17 billion, has limited the companies that qualify to those whose work is designated DX, which means it ranks highest on the military's list of national priorities, or to companies that have facilities with top-secret security clearances. Only about 20 companies applied by the May 1 deadline, according to the Defense Department. There are about 300,000 companies in the Pentagon's contractor supply chain. Earlier: Defense Firms to Vie for Virus Aid With Boeing Weighing Options “What we're hearing across the board is that the restrictions and requirements on the money are pretty onerous, and a majority of companies just can't apply for the money,” said Hawk Carlisle, president of the National Defense Industrial Association, which represents defense contractors. It's another example of the Trump administration's struggle to help businesses that have been decimated by the pandemic. The initial round of $349 billion aimed at small businesses sparked outrage after large restaurant chains, a professional basketball franchise and numerous publicly traded companies were able to get money while mom-and-pop businesses were shut out. Treasury has approved about $25 billion out of the $35 billion that Congress allocated for payroll assistance to airlines and cargo carriers. Earlier: American Gets Most as Biggest Airlines Win Bulk of U.S. Aid On Tuesday, Democratic Senator Maria Cantwell of Washington asked Treasury Secretary Steven Mnuchin to broaden the criteria for qualifying for loans and reopen the application process. “Treasury's implementation of the loan program has not adequately addressed the needs of the aerospace supply chain and its workforce, which is fundamental to America's industrial base,” she wrote. It's not just the defense industry raising concerns. Ellen Lord, the Defense Department's top acquisition official, told reporters last month that Treasury's criteria may have prevented companies with the greatest need from qualifying. “We have talked with them several times; they have reached out to us,” Lord said. “I am not sure companies with DX-rated contracts are perhaps the ones that have the most critical needs.” She said suppliers already have been giving DX programs priority, which they are required to do under Pentagon rules. The Treasury Department didn't respond to requests for comment. Congress stipulated that companies receiving the national-security loans must provide the government with warrants, equity or senior debt securities and agree to limits on dividends, stock buybacks and executive pay. But it's Treasury's additional criteria that defense firms say are too narrow. It restricted loans to two groups: those with a contract with the DX rating or those with facilities that have top-secret security clearances. Eric Fanning, president of the Aerospace Industries Association, whose members include Lockheed Martin Corp. and BAE Systems Plc, said the criteria should be broadened to cover more companies. A Pentagon spokesman, Air Force Lieutenant Colonel Mike Andrews, said in an email that the Defense Department has determined that only a few programs required a DX rating, but opted to stop releasing their names as of December 2018. Before that, the Pentagon had said there are about a dozen DX programs, including those for the Minuteman III ICBM program, the B-2 bomber, presidential aircraft, missile warning satellites and nuclear-missile submarines. Some of the major companies involved are Boeing, Lockheed Martin, Northrop Grumman Corp. and General Dynamics Corp. The Pentagon doesn't track the number of companies that possess top-secret clearances, but only the number of facilities cleared at that level, spokeswoman Cynthia McGovern said in an email. Like Boeing, the large companies that might qualify for the Treasury loans are able to tap the capital markets to meet their financing needs, especially now that the Federal Reserve is pumping hundreds of billions of dollars into debt markets by buying corporate bonds and bond funds. Earlier: Here's Where $881 Billion in U.S. Aid Went in Month of Spending The Pentagon is helping by increasing progress payments by $3 billion and speeding up those payments to contractors, which range from the biggest makers of weapons systems to the more numerous, lower-tier suppliers of everything from software to uniforms. But many contractors also rely on commercial deals to supplement their government work. With the airline industry facing a sharp and lengthy contraction, aviation suppliers could see a greater need for rescue financing in the near future, said Fanning of the aerospace industry group. Boeing, for example, in late April said it's shrinking its workforce by about 10%, or about 16,000 jobs, to conserve cash. General Electric Co. is cutting about 13,000 jobs in its jet-engine operation. Spirit AeroSystems Holdings Inc., a supplier to Airbus and Boeing, is also cutting jobs. “We don't have a sense yet of where the stress points are in the industrial base,” Fanning said. “The health of supply chains can take a while to sort out and show where there are problems.” https://www.bloomberg.com/news/articles/2020-05-14/a-17-billion-pot-of-national-security-stimulus-aid-goes-begging

  • Podcast: What A&D Companies Should Invest In After COVID-19

    May 19, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Podcast: What A&D Companies Should Invest In After COVID-19

    Michael Bruno Companies across the board are slashing costs, preserving cash, and trying to adjust to a new normal after the novel coronavirus throttled down business prospects. But there is one area they are sure to spend even more money on in the coming years as industry regroups after COVID-19. Listen in as Aviation Week and Accenture discuss what to watch for in technology investments. https://aviationweek.com/podcasts/check-6-accenture/podcast-what-ad-companies-should-invest-after-covid-19

  • SCAF et éthique

    May 19, 2020 | International, Aerospace

    SCAF et éthique

    Airbus et l'institut Fraunhofer FKIE créent un groupe d'experts sur l'utilisation responsable des nouvelles technologies. L'humain doit pouvoir conserver en toutes circonstances le contrôle du système de combat aérien futur (SCAF) quand il sera opérationnel. Dans le cadre du projet de système de combat aérien futur (SCAF), Airbus et l'institut allemand de communication, traitement de l'information et ergonomie Fraunhofer FKIE, basé à Bonn, ont créé un groupe d'experts sur l'utilisation responsable des nouvelles technologies en vue de définir et de proposer des « garde-fous » éthiques et juridiques internationaux pour le plus grand projet de défense européen. Mis en place initialement en Allemagne en 2019, ce groupe d'experts est actuellement composé de représentants des ministères allemands de la Défense et des Affaires étrangères, ainsi que de diverses fondations, universités et think tanks. « Le SCAF représente une énorme avancée à bien des égards. Il s'agit du plus grand projet de défense européen des décennies à venir et, à ce titre, il favorisera la collaboration des nations partenaires. Avec le SCAF, nous allons intensifier nos efforts pour développer les nouvelles technologies qui composeront ce système de systèmes aérien de sixième génération », a déclaré Dirk Hoke, CEO d'Airbus Defence and Space. « Ce programme offre de nouvelles perspectives dans le domaine des politiques de sécurité et contribue à renforcer le rôle de l'Europe dans le monde. Mais il soulève aussi certaines questions éthiques et juridiques sur lesquelles nous devons nous pencher. » Le programme SCAF est un système de systèmes en réseau d'une grande complexité, avec pour élément central un avion de combat de nouvelle génération. Cette plateforme avec pilote coopérera avec des drones d'appui appelés « remote carriers », qui fourniront des capacités essentielles pour l'accomplissement des missions. Des architectures système évolutives et interopérables permettront d'intégrer au SCAF les plateformes existantes modernisées. Pour tirer le meilleur parti des capacités collaboratives des plateformes avec et sans pilote, un « Air Combat Cloud » fusionnera en temps réel de gros volumes de données, associés à l'analyse militaire et à l'intelligence artificielle. Les technologies développées dans le cadre de ce projet devraient, en outre, avoir d'importantes retombées bénéfiques pour de futures applications civiles. Le professeur Reimund Neugebauer, Président de l'institut Fraunhofer-Gesellschaft e. V., a déclaré : « Le SCAF est sur le plan technologique le programme de défense le plus vaste et le plus ambitieux jamais réalisé en Europe. L'un des enjeux essentiels qui occupera notre groupe consiste à veiller à ce que le système réponde aux besoins des missions du XXIe siècle à l'échelle mondiale, tout en garantissant un contrôle total de l'humain sur le système, à tout moment et en toutes circonstances. C'est la première fois dans l'histoire de la République fédérale d'Allemagne, qu'un projet de défense majeur s'accompagne dès le départ d'un débat intellectuel sur la mise en œuvre des principes éthiques et juridiques de base – ‘conformité éthique et juridique dès la conception'. » Un site web a été créé afin de garantir un maximum de transparence dans les travaux du groupe d'experts : www.fcas-forum.eu. Tous les membres participent aux travaux à titre bénévole et s'engagent uniquement en leur 'me et conscience. https://www.aerobuzz.fr/breves-defense/scaf-et-ethique/

  • COVID-19 MAY WELL BE THE END OF THE CANADIAN ARMED FORCES AS WE HAVE KNOWN THEM…AND OF OUR EFFECTIVE SOVEREIGNTY

    May 19, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

    COVID-19 MAY WELL BE THE END OF THE CANADIAN ARMED FORCES AS WE HAVE KNOWN THEM…AND OF OUR EFFECTIVE SOVEREIGNTY

    The lesson from this history is simple. Cutting defence spending in times of austerity is a bipartisan affair in Canada. This is owing less to politics than arithmetic. DND's budget –which typically ranges from 1/5 to 1/4 of total federal departmental discretionary spending –is too big to be excluded from any serious spending restraint initiative. This is well understood by Liberals, Conservatives and the Finance Department. The COVID-19 Recession and its Impact No one knows how deep or how long the COVID-19-induced recession will be. But every serious analyst agrees it will produce the sharpest drop in output since the Great Depression. The International Monetary Fund, for example, projects a 6.2 per cent annualized decline in GDP for Canada,1nearly double that of the 2009 recession. And already the government's fiscal response is without precedent and will lead to the largest deficit in postwar Canadian history (at least 10 per cent of GDP, or over $200 billion). This does not mean that Ottawa will snap into austerity mode next year. The economy will likely be too weak for that kind of action and cutting government spending is not in the Trudeau government's DNA to begin with... One big difference between now and the past is that there will be enormous pressure on Ottawa after the recession to boost spending in a wide range of areas which have been exposed in the pandemic. These include public health funding, medical research, pandemic prevention and mitigation, the social safety net, and industries particularly hard hit during the recession. There are also Liberal election campaign commitments from 2019 to honour –almost none of which had been implemented pre-pandemic –of which national defence is conspicuously absent. ...this could produce a perfect storm for Strong, Secure, Engaged (SSE). This was always a big risk associated with a defence policy that had its funding ramped up gradually over many years. As the Harper government amply demonstrated, it is relatively easy to reduce or eliminate the rate of planned increases to defence funding –the government took almost no flak for doing so in 2010. Making matters worse, DND has failed to come anywhere near meeting the spending trajectory profiled in SSE, as David Perry has analyzed thoroughly. Which means flattening DND's budget ramp is even more tempting for any government in austerity or even re-prioritization mode. Would a change in government matter here? Unlikely. While the Conservatives are more committed to national defence and the Canadian Armed Forces than the Liberals, they would likely see deficit reduction as their top priority, and it is virtually impossible to have meaningful expenditure restraint that doesn't involve national defence [what the Harper government did from 2010 on]. Conclusion Over the past generation, recessions and the fiscal consolidation that has followed them have had a seriously negative impact on DND's budget. The COVID-19 recession could be the most severe Canada has faced in at least 40 years. It has already resulted in the largest peacetime deficit in Canadian history. And, because of the pandemic, government priorities have changed radically overnight. The future for SSE and its associated funding does not look bright. National Defence probably has a year or two before the crunch hits. Now is therefore the time for strategic thinking and serious priority setting among the political, public service and miitary leadership to ensure that the 2020s don't become another decade of darkness. Eugene Lang is Adjunct Professor, School of Policy Studies, Queen's University, and Fellow, Canadian Global Affairs Institute. He was chief of staff to two ministers of National Defence in the Chrétien and Martin governments and served as an official in the Department of Finance. The 2020s most certainly will be “another decade of darkness”. It is not improbable that the Canadian military, if the Liberals win the next election, will effectively end up as a constabulary/militia force with domestic response to natural disasters of various sorts as its primary function along with very token commitments to UN peacekeeping missions. Bye bye to serious numbers of new RCAF fighters, to serious numbers of new RCN frigates, and to the needed large funding to renew NORAD's North Warning System [see this post: “So Will the Canadian Government Put Some Big Bucks into Modernizing NORAD's North Warning System?“]. And bye bye to any meaningful military participation in NATO. Canada will then finally be defenceless against help from the US ( the following quote is from the last sentence of this earlier CGAI paper's Executive Summary: “Throughout its 60-year existence, NORAD has been Canada's “defence against help.”). Any American administration will have no hesitation in demanding the use of Canadian territory and waters for its own defence purposes if our efforts fall well below what the US thinks necessary. US Air Force bases at Cold Lake, Yellowknife, Goose Bay and a US Navy one at St. John's anyone? Take a look at this as an example of an increasingly prevalent Canadian progressive view; and Justin Trudeau's “base” is progressive to the max: Spending $19 billion on fighter jets won't fight COVID-19 or climate change Instead of buying a new weapons system, the federal government should disarm and invest in a Green New Deal There it is. Plus earlier from Mr Lang: Is the “business Liberal” extinct? By the way the photo at the top of the post is of the Avro CF-100 Canuck interceptor, the first jet fighter developed in Canada–to defend against Soviet bombers...and US help. Mark Collins

  • Contract Awards by US Department of Defense - May 14, 2020

    May 19, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - May 14, 2020

    NAVY Lockheed Martin Corp., Owego, New York, is awarded a $904,800,000 modification (P00011) to a previously awarded firm-fixed-price, cost-plus-fixed-fee contract N00019-19-C-0013. This modification provides for the production and delivery of three MH-60R Seahawk maritime aircraft for the Navy and 21 MH-60Rs for the government of India. Work will be performed at Owego, New York (52%); Stratford, Connecticut (40%); and Troy, Alabama (8%), and is expected to be complete by September 2024. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $113,100,000 and Foreign Military Sales funds in the amount of $791,700,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Hunter Pacific Group,* San Diego, California, is awarded a $30,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, architect-engineering contract for cost engineering, value engineering and scheduling services in the Naval Facilities Engineering Command (NAVFAC), Southwest Area of Responsibility (AOR). Work will be performed at various Navy and Marine Corps facilities and other government facilities within the NAVFAC Southwest AOR including, but not limited to: California (87%); Arizona (5%); Nevada (5%); Colorado (1%); New Mexico (1%); and Utah (1%). Work provides for cost estimates and other cost engineering services in support of analyses, reports, designs and change orders. Cost engineering services may include construction cost reduction evaluations and recommendations, bid analyses and verifications, validations of DD Form 1391 scope/cost estimate, peer review of cost estimates, review and technical analysis of contractor change order cost proposals and assistance with claims, litigations and negotiations with boards/committees. Value engineering services shall include facilitating and forming multi-discipline technical teams to conduct value engineering and/or function analysis concept development (FACD) workshops for a variety of projects. Services in support of value engineering and FACD workshops may include site investigations, preparation and/or review of engineering studies/reports, cost estimates, facility and infrastructure assessments, risk assessments, life cycle cost engineering and/or total ownership cost analyses, and schematic layouts/sketches. Scheduling shall be in support of analyses and change orders and may include preparation of schedules and construction cost loaded schedules, review/analysis of base line contractor schedules and schedule updates, review/analysis of contractor change orders, time impact analysis and assistance with claims, litigations and negotiations with boards/committees. Work is expected to be complete by April 2025. No task orders are being issued at this time. Fiscal 2020 operations and maintenance (O&M) (Navy) contract funds in the amount of $5,000 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 (Navy) and O&M (Marine Corps). This contract was competitively procured via the Navy Electronic Commerce Online website and four proposals were received. The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-20-D-0614). PSI Pax Inc.,* California, Maryland, is awarded a $29,286,410 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract. Work will be performed in Patuxent River, Maryland, and provides administrative, business and financial services such as data entry accounting processes, interface error research and analysis, process management, deficiency identification, testing of system changes, professional and analytical support, liaison support, funds management, financial tracking, internal and external data calls, document and records management, specialized analytical support in meeting financial systems requirements, assessing financial systems relative to data integrity, corporate and user reporting requirements as well as centralized support of travel related processes to include help desk support for the entire Naval Air Systems Command. Work is expected to be complete by June 2025. 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 as a small business set-aside via an electronic request for proposal; five offers were received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-20-D-0073). Mustang Technology Group LP, doing business as L3 Mustang Technology, Plano, Texas, is awarded a $19,082,000 fixed-price-incentive-firm-target modification to previously awarded contract N00024-19-C-5313 for 658 rounds of 57mm MK 332 High Explosive-4 Bolt Guided (HE-4G) Cartridge ammunition. Work will be performed in Plano, Texas (78%), and Cincinnati, Ohio (22%), and is expected to be complete by September 2021. Fiscal 2020 and 2019 procurement of ammunition, (Navy and Marine Corp) funding in the amount of $19,082,000 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. L3 Harris Technologies Inc., Anaheim, California, is awarded a $12,732,754 cost-plus-fixed-fee contract modification (P00030) to exercise options under previously awarded and announced contract N00030-18-C-0001. Work will be performed in Anaheim, California (71%); Cape Canaveral, Florida (23%); Washington, D.C. (3%); Bremerton, Washington (1%); Norfolk, Virginia (1%), and Kings Bay, Georgia (1%). Work will provide services and support for Flight Test Instrumentation and is expected to be complete by August 2022. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $2,968,016; fiscal 2020 weapons procurement (Navy) funds in the amount of $9,332,143; and fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $200,000 are obligated on this award. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $2,968,016 will expire at the end of the current fiscal year. This contract modification is awarded to the contractor on a sole-source basis under 10 U.S. Code 2304(c)(1) and was previously synopsized on the Federal Business Opportunities website. The Strategic Systems Programs, Washington, D.C., is the contracting activity. IDSC Holdings LLC, Snap-on Industrial, Kenosha, Wisconsin, is awarded an $11,088,933 firm-fixed-price, indefinite-delivery/indefinite-quantity contract. This contract procures up to 2,064 toolboxes containing 1.423 different types of commercial tools in support of initial outfitting associated with F-35 low rate initial production and maintenance. Work will be performed in Kenosha, Wisconsin, and is expected to be complete by September 2021. 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 and four offers were received. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-20-D-0025). Northrop Grumman Systems Corp., San Diego, California, is awarded a $9,162,847 modification (P00002) to cost-plus-fixed-fee order N00019-19-F-0280 against previously issued basic ordering agreement N00019-15-G-0026. This modification provides systems engineering and program management support for the development, integration, test and delivery of two radar altimeters and two integrated avionics units in support of the BQM-34S Firebee High Performance Aerial Target System, BQM-74E target drones and the Aerial Targets Program Office. Work will be performed in Endicott, New York (62%); San Diego, California (37%); and Clearwater, Florida (1%). Work is expected to be complete by January 2022. Fiscal 2018 weapons procurement (Navy) funds in the amount of $4,472,396 and fiscal 2019 weapons procurement (Navy) funds in the amount of $4,690,451 will be obligated at time of award, $4,472,396 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Independent RT Center LLC, Cibolo, Texas, is awarded $8,029,638 for firm-fixed-price delivery order M67854-20-F-5018 under previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contract M67854-20-D-5000 with a maximum ceiling of $62,500,000, for the Rough Terrain Container Handlers Service Life Extension Program. Work will be performed in Cibolo, Texas, and is expected to be complete by January 2030. Fiscal 2019 Congressional funds in the amount of $3,066,228 and fiscal 2020 procurement (Marine Corps) funds in the amount of $4,963,410 are being obligated and will expire Sept. 30, 2021. This contract was competitively procured via the Federal Business Opportunities website and two offers were received. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-20-D-5000). Huntington Ingalls Inc., Newport News, Virginia, is awarded a $7,400,000 not-to-exceed, fixed-price incentive, undefinitized change order modification to contract N00024-15-C-2114 for the installation of Consolidated Afloat Networks and Enterprise Services AN/USQ-208B (V) 5 Local Area Network drops. Work will be performed in Newport News, Virginia, and is expected to be complete by May 2022. Fiscal 2018 shipbuilding and conversion (Navy) funding in the amount of $3,700,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding, Conversion and Repair, Newport News, Virginia, is the contracting activity. ARMY Perspecta Enterprise Solutions LLC, Herndon, Virginia, was awarded an Other Transaction Authority agreement with a ceiling of $237,243,000 to develop, integrate, deliver, operate and maintain an enterprise capability for Army training and education information. Bids were solicited via the internet with three received. Work will be performed in Herndon, Virginia, with an estimated completion date of May 17, 2024. Fiscal 2020 research, development, test and evaluation (Army) funds in the amount of $14,500,000 were obligated at the time of the award. U.S. Army Contracting Command, Newark, New Jersey, is the contracting activity (W15QKN-20-9-1118). Charles River Laboratories, Wilmington, Massachusetts (W81XWH-20-A-0003); Envigo RMS LLC, Indianapolis, Indiana (W81XWH-20-A-0004); and The Jackson Laboratory, Bar Harbor, Maine (W81XWH-20-A-0005), will compete for each order of the $25,000,000 firm-fixed-price contract to supply small laboratory research animals and related services. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of July 8, 2025. U.S. Army Medical Research Acquisition Activity, Fort Detrick, Maryland, is the contracting activity. Quantitech Inc., Huntsville, Alabama, was awarded a $17,686,572 modification (000237) to contract W31P4Q-16-A-0010 for programmatic support for the Utility Helicopters Project Manager's Office. Work will be performed in Huntsville, Alabama, with an estimated completion date of May 14, 2021. Fiscal 2020 Foreign Military Sales (Australia); other procurement (Army); and research, development, test and evaluation (Army) funds in the amount of $17,686,572 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Mantle-Plocher JV,* Worden, Illinois, was awarded a $14,793,000 firm-fixed-price contract for placement and leasing of modular facilities to support approximately 450 personnel at Scott Air Force Base. Bids were solicited via the internet with four received. Work will be performed at Scott Air Force Base, Illinois, with an estimated completion date of May 13, 2025. Fiscal 2020 operations and maintenance (Air Force) funds in the amount of $14,793,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-20-C-0021). Dawson Enterprises LLC,* Honolulu, Hawaii, was awarded a $10,431,915 firm-fixed-price contract for construction of utility infrastructure to support the installation of a modular paint booth and personnel building. Bids were solicited via the internet with one received. Work will be performed in Tucson, Arizona, with an estimated completion date of Nov. 5, 2021. Fiscal 2019 civil operations and maintenance funds in the amount of $10,431,915 were obligated at the time of the award. U.S. Army Corps of Engineers, Los Angeles, California, is the contracting activity (W912PL-20-C-0017). AIR FORCE Braxton Technologies LLC, Colorado Springs, Colorado, has been awarded a $31,399,226 cost-plus-fixed-fee contract modification (P00012) to contract FA8806-19-C-0003 for support and delivery network, infrastructure, hardware and architecture solutions under the Cross Mission Ground Communications Enterprise Corps (ECX). This contract award provides for cross-domain solutions, design, integration and rapid delivery team services. Work will be performed in Colorado Springs, Colorado, and is expected to be completed by May 17, 2021. This award is the result of a sole-source acquisition under the Small Business Innovation Research Program. The total cumulative face value of the contract is $55,387,870. Fiscal 2020 research, development, test and evaluation funds in the amount of $8,507,999 are being obligated at the time of award. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. The Corporation of Mercer University, Warner Robins, Georgia, has been awarded a $9,039,309 task order (FA8523-20-F-0029) on basic contract FA8523-20-D-0001 to provide Laboratory Intelligence Validated Emulators-Virtual-Constructive (LVC) closed-loop engineering test and evaluation of newly developed electronic warfare (EW) systems. This order provides integration of gold-standard Intelligence Community threat definitions into the Electronic Warfare and Avionics Integrated Support Facility, where LVC closed loop operational test – vertical testability demonstration simulations and testing will be conducted to inform the baseline capability and to identify growth areas for improving operational survivability, reliability and mission success of fielded EW systems in support of airborne U.S. warfighting elements. Work will be performed in Warner Robins, Georgia, and is expected to be completed by May 13, 2022. Fiscal 2020 operations and maintenance funds in the amount of $4,140,106 are being obligated at the time of award. The Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2187605/source/GovDelivery/

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