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By: Aaron Mehta WASHINGTON — A combination of Chinese influence and budgetary uncertainty means America's defense industrial base is decaying at the lower levels, with some vital suppliers facing “domestic extinction,” a new study from the Trump administration is warning — and direct investment from the administration appears to be the solution. The study, the result of an executive order issued by president Donald Trump last July, also warns that if the situation is not remedied, the Pentagon faces “limited capabilities, insecurity of supply, lack of R&D, program delays, and an inability to surge in times of crisis.” The language seems dire, but much of the 140-page report appears to contain little new for those who have paid attention to defense industrial issues over the last several years. Many of the concerns outlined in the report echo that of a Defense Department internal study, released earlier this year, which warned long-term trends, including demographics and sole-source suppliers going out of business, were set to create major hurdles for the department. The report has been long coming. Trump ordered its creation in July of 2017, with Peter Navarro, his trade czar and a well-known China hawk, as the coordinating point man. At the time, Navarro said the study was being driven by concerns that “we cannot retain a preeminent military without a healthy, growing economy and a resilient industrial base.” By May 2018, the Pentagon had sent its conclusions into the White House for coordination which set industry expectations of a release shortly thereafter. However, the release dated continued to be pushed back, due largely to other news overtaking the White House. Trump, along with Deputy Secretary of Defense Pat Shanahan, is expected to appear at the White House Friday around 1:45 PM eastern time to sign several actions into law. The full report will be released shortly after. The report identifies five macro issues facing the defense industrial base: Sequestration and uncertainty in U.S government spending, which create instability and drives small firms away from defense work A decline of U.S. manufacturing capability and capacity, leaving weaknesses throughout the supply chain Antiquated U.S. government business practices, which the report warns leads to contracting delays and discourages innovation Industrial policies of competitor nations, both due to “collateral damage of globalization” and specific targeting by great powers like China And diminished U.S. STEM and trade skills, which are creating gaps in the workforce. The Departments of Defense, Energy, and Labor all submitted recommendations in the report, to deal with 300 individual weak points that are of concern. Notably, DoD's conclusion calls for the expansion of “direct investment in the lower tier of the industrial base,” through the department's Defense Production Act Title III, Manufacturing Technology, and Industrial Base Analysis and Sustainment programs. That would address “critical bottlenecks, support fragile suppliers, and mitigate single points-of-failure.” Ellen Lord, undersecretary of defense for acquisition and sustainment, told reporters it would not be “prudent” at this point to put a total dollar figure on what investment might be coming, but a senior administration official, speaking on background ahead of the report release, identified several shops being given extra cash. Those include $70 million fr a plant that produces gun components, in order to launch modernization and risk mitigation programs, as well as $1 million for the facility that produces the Abrams tank to procure better tooling. DoD's conclusions also call for the creation of an industrial policy to “inform current and future acquisition practices;” to attempt to diversify away from complete dependency on sources of supply in politically unstable countries who may cut off U.S. access, including “reengineering, expanded use of the National Defense Stockpile program, or qualification of new suppliers,” to work with allies on joint industrial base challenges; and to “modernize” the organic industrial base to ensure readiness. The Department of Energy, whose National Nuclear Security Agency handles the development of nuclear warheads, will propose establishing an “Industrial Base Analysis and Sustainment program to address manufacturing and industrial base risk within the energy and nuclear sectors” as part of its FY2020 budget request. And the Department of Labor will work to encourage STEM growth, as well as consider “potential incentives to recruit and retain workers to enter and/or stay in the industrial base, such as tuition reimbursement.” All three departments must provide an update 180 days from the issuance of the report. The Chinese Bogeyman While the report casts itself as part of the broader return of great power competition, it is impossible to miss that the authors view China as the industrial bogeyman. The words “China," “Chinese” or “Beijing” appear in the report 232 times; “Russia” appears only once, as part of a quote from another document — which also mentions China. The report is being released the same day that Vice President Mike Pence gave a keynote speech in Washington decrying what he called Chinese attempts to influence the American public, and just hours after Bloomberg issues a bombshell report that a Chinese company had managed to insert tiny, microscopic chips into hardware used by both the DoD and American intelligence services. “The Chinese Communist Party has also used an arsenal of policies inconsistent with free and fair trade, including tariffs, quotas, currency manipulation, forced technology transfer, intellectual property theft, and industrial subsidies doled out like candy, to name a few,” Pence said in his speech. “These policies have built Beijing's manufacturing base, at the expense of its competitors — especially America. That China is attempting to infiltrate the defense industrial base is no surprise to those who have been tracking DoD's comments on the issue in the last several years, but the report sums it up thusly: “While multiple countries pursue policies to bolster their economies at the expense of America's manufacturing sector, none has targeted our industrial base as successfully as China.” “China represents a significant and growing risk to the supply of materials and technologies deemed strategic and critical to U.S. national security; a challenge shared by key allies such as Germany and Australia,” the report adds, singling out rare earth metals and critical energetic materials for munitions and missiles as areas of concern. “China's actions seriously threaten other capabilities, including machine tools; the production and processing of advanced materials like biomaterials, ceramics, and composites; and the production of printed circuit boards and semiconductors.” China is four times as large as its next closest competitor when it comes to exporting to the U.S. rare earth materials, used in lasers, radar, sonar, night vision systems, missile guidance, and jet engines, making Beijing a significant supplier of these capabilities needed for America's high-end defense capabilities. Single sourced, and disappearing While much of the specific weak points in the defense industrial base are not spelled out in the public-facing part of the report, the 140-page document does include a number of examples of weak spots in the defense industrial base, largely in the lower-tier suppliers who make pieces and parts that would ordinarily go unnoticed on a large military system. A senior administration official, speaking ahead of the report's release, cited ceramics, high performance aluminum and steel, titanium, tungsten and carbon fibers as some of the components the Pentagon is concerned about. The report offers further examples. For instance, it says there are only four America suppliers with the capability to manufacture large, complex, single pour aluminum and magnesium sand castings, needed to help produce American airpower. Those suppliers “face perpetual financial risk and experience bankruptcy threats and mergers mirroring the cyclicality of DoD acquisition,” per the report. Meanwhile, there is only one qualified source for the upper, intermediate, and sump housing for an unnamed heavy lift platform used by the Marines (potentially the CH-53 King Stallion) that recently went through bankruptcy proceedings. “Without a qualified source for these castings, the program will face delays, impeding the U.S. ability to field heavy lift support to Marine Corps expeditionary forces,” the report warns. A material called ASZM-TEDA1 impregnated carbon is used in 72 chemical, biological and nuclear filtration systems owned by the DoD, and there is only a single qualified source, the report notes. “The current sourcing arrangements cannot keep pace with demand. DoD is using Defense Production Act Title III authorities to establish an additional source of this critical material,” the report says. In yet another example, the study looked at the companies that make flare countermeasures for military aircraft. There are only two domestic suppliers for flares with “little incentive to invest in infrastructure,” and both suffered explosions at their production sites in recent years. “Both companies have experienced quality and delivery problems since the accidents. As program offices look to improve quality and cost, they are beginning to look offshore at more modern facilities, where there are fewer quality and safety concerns.” Hawk Carlisle, a former Air Force officer who now leads the National Defense Industrial Association, called the reporter's findings “sobering." “Recent efforts by Congress and the administration have been encouraging, but more must be done,” Carlisle said. “Streamlining the acquisition process, updating the Committee on Foreign Investments in the United States guidelines, and reforming how we sell our systems to allies and partners have all been steps in the right direction.” Added Eric Fanning of the Aerospace Industries Association, "Guaranteeing the health of the American manufacturing and defense industrial base is a critical national security and economic priority as the United States combats today's threats and those we'll face tomorrow. We applaud the Administration's focus on these issues and look forward to working together to implement the assessment's recommendations with the same spirit of industry-government cooperation and engagement that led to today's report,” Both groups were part of 15 conversations the working group had with industry during the production of the report. https://www.defensenews.com/pentagon/2018/10/04/white-house-warns-of-domestic-extinction-of-suppliers-in-industrial-base-report-and-dod-is-ready-to-help-with-cash

By: Valerie Insinna WASHINGTON — Boeing and Brazilian aerospace company Embraer are reportedly discussing the prospect of building an assembly line for Embraer's KC-390 cargo planes in the United States. According to Brazilian newspaper Valor Economico, which first reported the talks on Oct. 1, and a subsequent Reuters story, the two companies see a U.S. KC-390 plant as part of a larger defense-related joint venture. The discussions on KC-390 follow a July agreement that gave Boeing an 80 percent stake in Embraer's commercial business, and it was widely speculated that a similar deal on the companies' defense business hammered out in the coming months would involve greater cooperation with Boeing on KC-390. Jackson Schneider, president and CEO of Embraer Defense & Security, told Defense News this July that more information about a Boeing-Embraer tie up on KC-390 could be revealed later this year. Boeing and Embraer established agreements in 2012 and 2014 that allow the U.S. firm to have a hand in global marketing and logistics support of the KC-390, but a defense-related joint venture would allow for “much broader collaboration,” he said. “Boeing has fantastic experience, [and] the KC-390 is a fantastic plane; it is a game-changer,” he said at Farnborough Airshow. “But I understand that we don't have a substantial number of clients yet because we are in the certification phase. For sure I think that the Boeing presence in the market is very complementary of what we have. It will enlarge significantly our opportunities in terms of sales.” The KC-390 is a multi-mission aircraft built to haul cargo, transport passengers, insert special operators and refuel other aircraft, among other uses. However, Embraer has struggled to draw serious interest from international buyers and Brazil currently remains its only customer — although the aircraft has prospects in Portugal and New Zealand and with a commercial aviation services company. “A decision to build the aircraft in the U.S. would likely only be undertaken if Boeing/Embraer could sell KC-390 to the [U.S.] Air Force, Navy, or Marine Corps,” wrote Byron Callan of Capital Alpha Partners in an email. That could be a tall order, as the U.S. services historically have operated Lockheed Martin's C-130 Hercules for the same purpose and are either in the process of replacing old variants with new ones, or lack the money to replace old C-130s and plan to recapitalize them instead. The U.S. Air Force is upgrading active units' older C-130 models to the newest C-130J Super Hercules, but the service does not have the funding to expand the current C-130J program of record and will have to upgrade some C-130H models, said Lt. Gen. Jerry Harris, the services deputy chief of staff for strategic plans and requirements, during a Sept. 28 hearing in front of a subcommittee of the House Armed Services Committee. Meanwhile, the Navy plans to replace its C-130T fleet with 25 new KC-130Js in the early 2020s, Rear Adm. Scott Conn, the service's director of air warfare, said in the hearing. https://www.defensenews.com/air/2018/10/04/boeing-embraer-reportedly-in-talks-on-bringing-kc-390-production-to-us

NAVY Asturian-Consigli JV LLC,* Virginia Beach, Virginia (N40085-18-D-1124); Edifice LLC, doing business as Edifice Solutions,* Beltsville, Maryland (N4008-18-D-1125); ED DesignBuild LLC,* Germantown, Maryland (N40085-18-D-1126); HCG-JCG JV,* Escondido, California (N40085-18-D-1127); and Military and Federal Construction Co. Inc.,* Jacksonville, North Carolina (N40085-18-D-1128), were each awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity multiple award contract for general construction projects in the Hampton Roads area of Virginia. The maximum dollar value for all five contracts combined is $249,000,000. The work to be performed provides for, but is not limited to, new construction, renovation, alteration, and repairs for general construction projects. Types of facilities include, but are not limited to warehouses, training facilities, personnel support and service facilities, housing facilities, etc. Asturian-Consigli JV LLC is awarded initial task order at $2,947,636 for the foundation and crawl space repairs at the advanced electronic guidance and instrumentation system facility (V-10) on Wallops Island, Accomack County, Virginia. Work for this task order is expected to be completed by December 2019. All work on this contract will be performed in the Naval Facilities Engineering Command, Mid-Atlantic Hampton Roads area, Virginia. The term of the contract is not to exceed 60 months, with an expected completion date of September 2023. Fiscal 2018 operations and maintenance, (Navy) contract funds in the amount of $2,967,636 are obligated on this award and expired at the end of fiscal 2018. Future task orders will be primarily funded by operation and maintenance, (Navy) and military construction. This contract was competitively procured via the Navy Electronic Commerce Online website, with 19 proposals received. These five contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity. (Awarded Sept. 29, 2018) MacDonald-Bedford | MBP JV,* Alameda, California, was awarded a maximum amount $98,000,000 indefinite-delivery/indefinite-quantity contract to provide construction management services in support of the Guam Defense Policy Review Initiative (DPRI) Program. The work to be performed will support the existing Naval Facilities Engineering Command (NAVFAC) workforce capabilities and provide increased capability to support construction projects and associated efforts undertaken by NAVFAC Pacific. The outcome to be achieved is the hiring of temporary supplemental construction management and engineering technician services. No task orders are being issued at this time. Work will be performed primarily in the Marianas region of operation (to include the following islands but not limited to: Guam, Tinian, Pagan, Palau, Chuuk, Saipan, and Northern Mariana Islands) (80 percent); Australia (10 percent); and Hawaii (10 percent), and is expected to be completed by September 2023. Fiscal 2018 operations and maintenance (Navy) contract funds in the amount of $10,000 are obligated on this award and expired at the end of fiscal 2018. Future task orders will be primarily funded by operation and maintenance (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website, with six proposals received. The Naval Facilities Engineering Command, Pacific, Pearl Harbor, Hawaii, is the contracting activity (N62742-18-D-1171). (Awarded Sept. 29, 2018) Davcon Inc.,* Virginia Beach, Virginia (N40085-18-D-1149); Delaware Corp.,* Topping, Virginia (N4008-18-D-1150); Doyon Project Services,* Federal Way, Washington (N40085-18-D-1151); Rand Enterprises,* Newport News, Virginia (N40085-18-D-1152); and Within Interior Design Inc., doing business as Tazewell Contracting,* Norfolk, Virginia (N40085-18-D-1153), were each awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity multiple award contract for heating, ventilating and air conditioning construction projects in the Hampton Roads area of Virginia. The maximum dollar value for all five contracts combined is $95,000,000. The work to be performed will primarily consist of new construction, demolition, repair, alteration, and renovation of heating, ventilating and air conditioning equipment, systems and infrastructure to include system components such as fans, motors, ductwork, controls, pumps, piping, supports, and insulation. Types of facilities on which work will be performed include administrative/industrial buildings, maintenance shops, warehouses, hangars, communications facilities, personnel support/instructional buildings, recreational facilities, lodging/dormitory facilities, medical clinics, training areas, indoor ranges, etc. Davcon Inc. is being awarded initial task order at $148,400 for the replacement of a chiller at Building 3889 at Joint Expeditionary Base Little Creek-Fort Story, Virginia Beach, Virginia. Work for this task order is expected to be completed by February 2019. All work on this contract will be performed in the Naval Facilities Engineering Command, Mid-Atlantic Hampton Roads area, Virginia. The term of the contract is not to exceed 60 months, with an expected completion date of September 2023. Fiscal 2018 operations and maintenance (Navy) contract funds in the amount of $168,400 are obligated on this award and expired at the end of the fiscal 2018. Future task orders will be primarily funded by operations and maintenance (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website, with 11 proposals received. These five contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity. (Awarded Sept. 29, 2018) A&H-Ambica JV LLC,* Livonia, Michigan (N40085-18-D-8733); Building Associates Inc.,* Bloomington, Indiana (N4008-18-D-8734); Federal Construction Group Inc.,* San Diego, California (N40085-18-D-8735); Krempp Construction Inc., Jasper, Indiana (N40085-18-D-8736); Midnight Sun Global Services LLC,* South Bend, Indiana (N40085-18-D-8737); and SEI Group Inc., Huntsville, Alabama (N40085-18-D-8738), were each awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity multiple award contract for general construction projects in Crane, Indiana. The maximum dollar value for all six contracts combined is $95,000,000. The work to be performed provides for, but is not limited to, new construction, demolition, repair, alteration, and renovation of buildings, systems and infrastructure and may include civil, structural, mechanical, electrical, fire protection, and communication systems. Types of facilities include administrative, industrial, maintenance, warehouses, communications, personnel support, recreation, lodging, medical, training, ranges, roads, etc., in support of the Naval Facilities Engineering Command, Public Works Department Crane, Indiana. A&H-Ambica JV LLC is awarded initial task order at $1,876,276 for the renovation of Building 2724 Break Room Renovation at Public Works Department Crane, Indiana. Work for this task order is expected to be completed by October 2019. All work on this contract will be performed in the Naval Facilities Engineering Command, Mid-Atlantic Public Works Department Crane, Indiana area of responsibility. The term of the contract is not to exceed 60 months, with an expected completion date of September 2023. Fiscal 2018 Navy working capital contract funds in the amount of $1,901,276 are obligated on this award and expired at the end of fiscal 2018. Future task orders will be primarily funded by operations and maintenance (Navy); and military construction. This contract was competitively procured via the Navy Electronic Commerce Online website, with 19 proposals received. These six contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity. (Awarded Sept. 29, 2018) DEFENSE LOGISTICS AGENCY BP Products North America Inc., Chicago, Illinois, has been awarded a maximum $47,075,766 fixed-price with economic price adjustment contract for aviation fuel. This was a competitive acquisition with 19 offers received. This is a one-year base contract with no option periods. Location of performance is Singapore, with a Dec. 31, 2019, performance completion date. Using military services are Army, Navy, and Air Force. Type of appropriation is fiscal 2019 defense working capital funds. The contracting agency is Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE602-19-D-0452). Olgoonik Technical Services LLC, Anchorage, Alaska, has been awarded a maximum $11,579,403 modification (P00027) exercising the third one-year option period of a one-year base contract (SP3300-16-C-5001) with four one-year option periods for warehousing and distribution support services. This is a fixed-price-incentive firm contract with cost-reimbursement line items. The modification brings the total cumulative face value of the contract to $40,706,113 from $29,126,709. Locations of performance are Alaska and California, with an Oct. 15, 2019, performance completion date. Using customer is Defense Logistics Agency. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Distribution, New Cumberland, Pennsylvania. AIR FORCE Onvoi LLC, De Funiak Springs, Florida, has been awarded a $39,951,581 contract for base operating services at March Air Reserve Base, California. This contract provides for all personnel, supervision, equipment, tools, materials, supplies, test equipment, and other items and services necessary to accomplish supply, vehicle operations and maintenance, traffic management, real property maintenance, fuels management, and airfield management. Work will be performed at March ARB, California, and is expected to be completed by Oct. 31, 2023. This award is the result of a competitive acquisition and 10 offers were received. Fiscal 2019 operations and maintenance funds in the amount of $8,106,974 are being obligated at the time of award. Air Force Reserve Command Robins Air Force Base, Georgia, is the contracting activity (FA4664-19-C-0001). CORRECTION: The Sept. 28, 2018, announcement of a $1,051,818,540 cost-plus-fixed-fee contract award to The Aerospace Corp., El Segundo, California (FA8802-19-C-0001), for Federally Funded Research and Development Center support, was not for a contract modification. All other information in the announcement is correct. ARMY Oshkosh Defense LLC, Oshkosh, Wisconsin, was awarded a $16,038,473 modification (P00151) to contract W56HZV-15-C-0095 for spares acquisition integrated with production. Work will be performed in Oshkosh, Wisconsin, with an estimated completion date of Dec. 31, 2018. Fiscal 2018 procurement Marine Corps; and other procurement, Army funds in the amount of $16,038,473 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1654951/source/GovDelivery/

Invites Canadian small businesses to develop innovative solutions to nine new challenges October 3, 2018 – Ottawa, Ontario Small businesses and their ability to innovate make Canada's economy run. At the same time, the federal government is Canada's largest purchaser of goods. How can the government use these purchases to help small businesses innovate and grow? The answer is Innovative Solutions Canada. Through this program, government departments are inviting small businesses to come up with a new innovative product, service or solution in answer to specific challenges they face. Winning small businesses may receive up to $150,000 to refine their research and development and, if accepted into Phase 2, receive up to $1 million to develop a working prototype. The Government will then act as a first customer, helping small businesses to commercialize their innovations, scale up their business and create good jobs. The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, and the Honourable Mary Ng, Minister of Small Business and Export Promotion, today announced nine challenges on behalf of the Honourable Carla Qualtrough, Minister of Public Services and Procurement and Accessibility, the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, the Honourable Jonathan Wilkinson, Minister of Fisheries, Oceans and the Canadian Coast Guard, the Honourable Ralph Goodale, Minister of Public Safety and Emergency Preparedness, and the Honourable Marc Garneau, Minister of Transport. Agriculture and Agri-Food Canada is challenging small businesses to: 1. Improve soil sample collection to make it easier, and make testing more accurate 2. Make “smart farming” technology cheaper so that smaller farms can use it Canadian Coast Guard is challenging small businesses to: 3. Harness the movement of ships in ocean waves to reduce fuel consumption and the need for external power sources Correctional Service Canada is challenging small businesses to: 4. Find new technology to stop inmates from performing illegal activities using wireless devices 5. Monitor the life signs of inmates and identify critical conditions so that staff can respond more quickly in emergencies 6. Create an innovative and cost-effective way to stop contraband items from getting into prisons via drone or being thrown over the fence Public Services and Procurement Canada is challenging small businesses to: 7. Improve the sound quality for remote interpretation services so that service isn't interrupted because the interpreters can't hear Shared Services Canada is challenging small businesses to: 8. Deliver high-speed broadband Internet access to citizens and Government of Canada employees who work or live in remote areas of the country Transport Canada is challenging small businesses to: 9. Accelerate the adoption of low-cost yet effective technologies that improve pedestrian and bicyclist safety around commercial vehicles, preventing injuries and saving lives Innovative Solutions Canada is a key component of the government's Innovation and Skills Plan, a multi-year plan to make Canada a global innovation leader and prepare Canadians to succeed in tomorrow's economy. Quotes “In the Economic Strategy Tables reports, we heard it clearly from Canada's industry and innovation leaders: the Government must use its purchasing power to help small businesses innovate and be more competitive. That's exactly what we're doing through Innovative Solutions Canada. Government gets access to quality products, while businesses grow and create good middle-class jobs for Canadians.” – The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development “Small businesses are the backbone of our economy and employ over 8 million hard-working Canadians. That's why our government is committed to helping small businesses start up, scale up and access new markets. Innovative Solutions Canada is a fantastic program that uses government procurement to help small and medium-sized businesses innovate and then commercialize their innovations. These are worthy new challenges, and I can't wait to see what our innovative Canadian small businesses come up with.” – The Honourable Mary Ng, Minister of Small Business and Export Promotion “Through the Innovative Solutions Canada program, we are challenging small businesses to help us provide Canadians and federal employees with access to the services they need, whether it is accurate translation of proceedings or improved efficiency of high-speed Internet access in remote locations.” – The Honourable Carla Qualtrough, Minister of Public Services and Procurement and Accessibility and Minister responsible for Shared Services Canada Innovation is a driving force of Canada's agricultural sector. Through these challenges, small business innovators can help agriculture researchers, smaller-scale farms and processing plants access the tools and technologies they need to be environmentally sustainable and economically prosperous. We look forward to seeing their creative solutions to help drive the sector forward and create good middle-class jobs for Canadians.” – The Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food “The Canadian Coast Guard is a leader in environmental stewardship and marine safety. By partnering with innovative small businesses to find ways to reduce fuel consumption, we are supporting our government's commitment to reduce emissions and protect our marine environment.” – The Honourable Jonathan Wilkinson, Minister of Fisheries, Oceans and the Canadian Coast Guard “Partnering with Innovative Solutions Canada is a great opportunity to share new ideas that contribute to public safety for all Canadians. I welcome innovative ideas that support Correctional Service Canada's mandate of actively encouraging and assisting federal offenders in becoming law-abiding citizens.” – The Honourable Ralph Goodale, Minister of Public Safety and Emergency Preparedness “I'm pleased to see this initiative being used to explore new ways to protect vulnerable road users. This program is an excellent opportunity to encourage small businesses to be new partners in road safety by advancing technologies that improve safety for pedestrians and cyclists.” – The Honourable Marc Garneau, Minister of Transport Quick facts Program funding will come from the 20 departments and agencies participating in Innovative Solutions Canada. Each department will set aside funding for this initiative that amounts to one percent of its 2015–16 combined procurement and internal research and development expenditures. Together, the funding from the departments and agencies represents a more than $100-million investment over the course of five years. Small businesses make up 98 percent of Canadian businesses and employ over 8 million hard-working Canadians. Innovative Solutions Canada is encouraging submissions from businesses owned and led by women, Indigenous peoples, youth and members of visible minorities by ensuring those groups are included in the program's outreach plans and activities. There are hundreds of programs and services that offer everything from funding to expert advice to help businesses innovate, create jobs and grow Canada's economy. With a simple, story-based user interface, the new Innovation Canada platform can match businesses with the most fitting programs and services in about two minutes. Associated links Innovative Solutions Canada challenges News release: Government helping small businesses innovate News release: Government helping small businesses develop sustainable solutions Contacts Follow Innovation, Science and Economic Development Canada on Twitter: @ISED_CA Nilani Logeswaran Press Secretary Office of the Minister of Innovation, Science and Economic Development 343-291-2849 613-668-1794 Sandra Aubé Director of Communications Office of the Minister of Small Business and Export Promotion 343-998-5328 Media Relations Innovation, Science and Economic Development Canada 343-291-1777 ic.mediarelations-mediasrelations.ic@canada.ca https://www.canada.ca/en/innovation-science-economic-development/news/2018/10/government-challenges-small-businesses-to-innovate.html

By Zacks Equity Research, Zacks.com The Boeing Company BA recently won a $62.7-million contract for providing inspections, Inner Wing Panel (IWP) modifications, and repairs for the F/A-18 E/F and EA-18G aircraft. Such designated efforts are expected to restore aircraft and IWP service life projections to new design specifications. Work related to the deal will be majorly carried out in Jacksonville, FL; St. Louis, MI; and Lemoore, CA. The entire task related to the deal is expected to get completed in September 2019. The deal was awarded by the Naval Air Systems Command, Patuxent River, Maryland. A Brief Note on F/A-18 and E/A-18 Boeing's F/A-18 Block III Super Hornet is a twin-engine, supersonic, all weather multirole fighter jet. The U.S. Navy's tactical and air superiority aircraft is capable of performing virtually every mission in the tactical spectrum, including air superiority, day/night strike with precision-guided weapons, fighter escort, close air support, suppression of enemy air defenses, maritime strike, reconnaissance, forward air control and tanker missions. Whereas, the EA-18G Growler is the most advanced airborne electronic attack (AEA) platform, which operates from either an aircraft carrier or from land-bases. What's Favoring Boeing? Boeing, being one of the major players in the defense business, stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog. Furthermore, the company's expertise lies in programs related to wide variety of aircraft components, repairs and modification works. Considering Boeing's combat-proven aerospace programs and associated services along with the rapidly growing need for military aircraft in light of the enhancing geopolitical uncertainties worldwide, the company witnesses a solid inflow of orders from Pentagon. These contract wins, in turn, boost top-line growth for the company's defense business segment. Evidently, in second-quarter 2018, revenues at the Boeing Defense, Space & Security (BDS) segment, which manufactures military jets like F/A-18, EA-18 Growler and its related components, increased 9% year over year to $5.59 billion. In line with this, we may expect the latest contract win to help this unit deliver similar top-line performance, in coming quarters. Meanwhile, toward the end of June 2018, the U.S. Senate approved the fiscal 2019 defense budget that provisions for major war fighting investments worth $21.7 billion for aircraft. Boeing, being the largest aircraft manufacturer in the United States, will surely be a significant beneficiary from the budget, which further includes an investment plan of $2 billion for procuring 24 F/A-18E/F aircraft. Such inclusions reflect solid growth prospects for the BDS segment, which, in turn, are likely to boost Boeing's profit margin. Price Movement Boeing's stock has gained 53.4% in the past 12 months compared with the industry 's growth of 25.1%. The outperformance was primarily led by the robust worldwide demand for its commercial aircraft and military jets. Full article: https://www.nasdaq.com/article/boeing-wins-63m-navy-deal-for-fa-ea-18-aircraft-support-cm1032450

By: Pierre Tran and Vivek Raghuvanshi NEW DELHI and PARIS — Indian Air Force chief, Air Chief Marshal Birender Singh Dhanoa defended the decision of India's ruling National Democratic Alliance to buy 36 Rafale fightersfrom France, calling it “a game changer" even as the opposition party criticizes the deal. Addressing annual news conference, Dhanoha said: "At the appropriate level, the Indian Air Force was consulted, but it is for the government to choose. It was decided to buy two squadrons through a government to-government deal, to meet up emergency requirements.” India and France signed the €7.8 billion (U.S. $8.99 billion) inter-governmental agreement Sept. 23, under which 36 Rafale fighter aircraft will be procured from Dassault Aviation for Indian Air Force (IAF) in fly away condition. France will invest 30 percent of the total contract value in India's military aeronautics-related research programs and 20 percent into local production of Rafale components to fulfil the mandatory offsets under the deal. The deliveries of Rafale fighters will start this month. India's main opposition party, Indian National Congress, has claimed on several occasions that the Rafale deal is grossly overvalued and tainted by crony capitalism. The Congress said the Modi government had failed to answer several questions on why public sector Hindustan Aeronautics Limited (HAL) had lost the manufacting deal to industrialist Anil Ambani's Reliance Defence Ltd. “The earlier deal for 126 medium multirole combat aircraft reached an impasse during negotiations," Dhanoa said,, referring to a $12 billion medium, multi-role combat aircraft program that was launchced in 2007 but scrapped 10 years later. "We had three options: wait for something good to happen, withdraw the global tender and start over again, or do an emergency purchase. We did an emergency purchase.” Dhanoa called the cost of 36 Rafale was “reasonable and adequate." The latest comments from Dhanoa come after Indian defence minister Nirmala Sitharaman called baseless congressional allegations of a reduction in the number of Rafale jets being purchased from France. Congress has demanded the government explain why instead of 126 Rafale fighter jets, only 36 are being purchased if they were cheaper under the NDA deal than the prior deal. Sitharaman is expected to hold the first annual defence ministers dialogue with her counterpart Florence Parly in Paris Oct. 12-13, as the two countries seek to expand bilateral defense and strategic ties. In France, Dassault said the company had picked Reliance as its Indian partner to meet requirements for local offset established by the Indian Defense Procurement Procedure and Make in India policy. The statement followed controversy sparked by remarks by former French president François Hollande, who said the Indian government selected Reliance as the local partner and that the company "had nothing to say on the subject, we had no choice, we took the partner which was presented.” Dassault put out its statement on the deal for 36 Rafale to India Sept, 21 statement, stating that, in accordance with the policy of Make in India, Dassault Aviation decided to make a partnership with India's Reliance Group. https://www.defensenews.com/global/asia-pacific/2018/10/03/indian-air-force-chief-defends-rafale-fighter-deal-against-claims-of-crony-capitalism

By: Jen Judson WASHINGTON — The U.S. Army has kicked off a major design competition for its Future Attack Reconnaissance Aircraft by releasing a request to industry on Oct. 3 to submit plans that could lead to a chance to build flyable prototypes in just a few years. The service, in June, released a draft solicitation that outlined its intention to get two different helicopter prototypes flying in 2023. The effort is part of the Army's larger move to procure a family of Future Vertical Lift, or FVL, aircraft in the early 2030s, if not sooner. The Army has been talking about procuring an FVL family of helicopters for the better part of a decade and has debated whether to prioritize the pursuit of a medium-lift helicopter to replace UH-60 Black Hawks and AH-64 Apache helicopters. Alternatively, the service was considering buying an armed reconnaissance helicopter to fill the gap left by the OH-58 Kiowa Warrior's 2014 retirement. With the advent of the Army Futures Command and its focus on six modernization priorities, of which FVL is third, progress is being made at lightning speed to make FVL a reality. The service, through an FVL Cross-Functional Team, led by Brig. Gen. Wally Rugen, has settled on going after both a long-range assault helicopter and a Future Attack Reconnaissance Aircraftsomewhat back-to-back. But the FARA procurement plans are fast-paced and lead straight to a winner through a fly-off competition, which deviates from the way the Army has gone about its future medium-lift helicopter development. While the Army collected designs, reviewed them and selected two teams to build prototypes to fly in a Joint Multi-Role technology demonstration for a medium-lift aircraft, the results will simply inform requirements for the Army to move into a program of record where the service will make a determination on how it will compete, build and procure a long-range assault variant of FVL. With the FARA competition, the Army plans to award four to six initial design contracts in June of 2019, and then nine months later — to avoid camping out in the PowerPoint stage — the service will choose up to two designs to move forward in fiscal 2021 with a fly-off planned to start in the first quarter of 2023 (November 2022 to be specific, according to the solicitation). The Army will choose a winner and move forward into a milestone appropriate to advance the procurement of the helicopter, whether that is a technology development phase or engineering and manufacturing development or even a production phase, Rugen told a small group of reporters in an Oct. 3 media roundtable. It all depends on where the technology stands following the fly-off and what phase of the acquisition process the Army will enter once it chooses a winner, Dan Bailey, the Army's JMR-TD director, said in the interview. “The Army currently lacks the ability to conduct armed reconnaissance, light attack, and security with improved stand-off and lethal and non-lethal capabilities with a platform sized to hide in radar clutter and for the urban canyons and mega cities,” the solicitation states. The helicopter would be the “ ‘knife-fighter' of future Army Aviation capabilities” in a small package with “maximized performance,” it describes. The Army doesn't want to carve out requirements in granite, according to Rugen, and intends to be flexible as technology capability unfolds in the program, but the solicitation does state it wants a 40-foot maximum rotor diameter, and the fuselage should also not exceed 40 feet in width. By staying flexible, the Army hopes to steer clear of some of the mistakes it has made in the past attempting to acquire an armed reconnaissance helicopter. The Army failed three times to procure a new aircraft — the most memorable being the cancellation of the Comanche helicopter program in 2004 after two aircraft were built and $6.9 billion was spent. Rugen said the Army also wants to make sure affordability considerations are driven into the program and the designs from the beginning are a top requirement for industry to consider. The Army also wants the designs to incorporate the Improved Turbine Engine Program, or ITEP,engine that is being competitively developed to replace the engines in Black Hawks and Apaches. The Army is close to choosing a winner from two teams designing engines to move into the engineering and manufacturing development phase of the program within the next few months. The Army plans to spend approximately $15 million per industry participant in the initial design phase. Participants would receive $8.5 million in FY19 and $6.5 million in FY20. The two participants selected to continue into the prototype phase of the program would receive about $735 million each from FY20 to FY23. Rugen and Bailey said industry interest following the release of the draft solicitation in June has been higher than anticipated and included both industry partners that were not expected and all of those that were. Bailey said that, based on industry interest and participation so far, choosing six designs would be a competitive process because there are more than six possible entrants that have expressed interest in submitting designs. Tim Malia, Sikorsky's program director for FVL light development, told Defense News in a recent interview that the Lockheed Martin-owned company planned to use its X2 technology that is used in its S-97 Raider coaxial helicopter program as the centerpiece to its design offering for the FARA competition. The company is already scaling its X2 technology used in Raider up to a medium-lift aircraft — called the SB-1 Defiant that is participating in the JMR technology demonstration and expected to fly by the end of the year. Malia said it would not be difficult to scale the helicopter from the 34-foot main rotor diameter size of the Raider to the desired 40-foot diameter rotor blades envisioned for FARA. The company has also been working on designs to outfit Raider or any aircraft it builds with X2 technology with the ITEP engine. Sikorsky announced Oct. 3 that its Raider aircraft exceeded 200 knots in a flight test at its West Palm Beach, Florida, flight test center. Bell, which has been flying its V-280 Valor til-trotor helicopter as part of the JMR-TD effort for the better part of a year, continues to hold tight its plans for a design to submit to the FARA competition. https://www.defensenews.com/land/2018/10/03/us-army-triggers-design-competition-for-future-attack-reconnaissance-helicopter

By ARIE EGOZI TEL AVIV: Israel is planning constellations of nano satellites, built by Israel Aerospace Industries (IAI), that will allow almost continuous coverage of “areas of interest,” which are likely to include Iran, Syria, Lebanon and other countries, according to experts that are not connected in any way to the program. IAI refused to comment. The first nano satellite was developed by IAI and was launched into space in 2017 as part of a scientific experiment. The 5-kilogram satellite — approximately the size of a milk carton — is equipped with special cameras able to identify various climatic phenomena, and a monitoring system that allows the choice of areas to be imaged and researched. ”We are developing the capability to launch a constellation of Nano satellites. The large number of satellites will give us the capability for a much higher rate of revisits, and actually a continuous monitoring of areas of interest.” says Opher Doron, general manager of IAI's Space Division. The nano satellites optical payloads are smaller and the quality of their optical payloads is lower. ”But by using a temporal resolution method this problem is dealt with in a very effective way,” Doron claims. “This method is not directly related to the quality of the sensor but is based on the frequency of revisits over a site.“ The other problem with smaller satellites is color. “Resolution is, of course, very important but we also work on improving the color quality of the images, Doron said. “A good intelligence expert does not need color to extract, the needed intelligence from a satellite image, but when it comes to decision-makers, color is of great importance.” What underpins all this? It takes a ballistic missile 12 to 15 minutes to travel from Iran to Israel. The earlier a launch is detected and the earlier the trajectory of the missile can be plotted, the better the chances to intercept it far from its designated target. Today, low orbit Ofeq spy satellites visit “areas of interest” in wide intervals so their optical or radar payloads cannot keep a persistent watch. When it comes to the ballistic missile threat, this is a major problem. Israeli sources say that some 30 minutes are needed from the command to prepare a ballistic missile for launch until it is ready for launch, and this if the protection silos are well equipped. If the enemy is aware of the “visiting” time of the spy satellites over his territory this can be the perfect time to avoid detection of the preparations until the launch itself. Once launch occurs, Israel is supposed to get warnings from Lockheed Martin's Space-Based Infrared System (SBIRS),the US constellation of geosynchronous earth orbit (GEO) satellites. The U.S also deploys an X-band radar system in southern Israel to improve detection of ballistic missiles. This complements the layer supplied by the Green Pine radar, part of the Israeli Arrow missile interceptors. The first nano satellite was launched from India on the PSLV-C37 launcher with 103 other nano satellites. The plan to build and launch nano satellites first emerged a decade ago. A joint company of IAI and Rafael would undertake the mission. But that plan was deserted. Yizhak Ben Israel, chairman of the Israeli space agency, served in the Israeli air force and later was in charge of developing Israel's most advanced and classified military systems at the development directorate in the Defense Ministry. He notes that, although nanosats possess much less exquisite capabilities than SBIRS or other large satellites, “when you use a constellation of such satellites the combined capability can be very effective in missions like locating missile launchers.” The other advantage of nano satellites is their price: “You go from hundreds of million of dollars for a full size imaging satellite to some millions of dollars when it comes to a nano satellite.” Not directly related to the nano satellite program but part of Israel's space effort, IAI teamed with British start-up company Effective Space to make a fleet of special satellites weighing roughly 880 pounds that can refuel other satellites in space. IAI signed an agreement for technological and financial cooperation with the smaller company. While Effective Space is headquartered in London, its CEO, Arie Halsband, was general manager of IAI's space division before starting his own company. https://breakingdefense.com/2018/10/israel-plans-anti-missile-nano-satellite-constellation

Par Emmanuel Huberdeau La DGA a notifié une étude pour un système d'aide à la vision des pilotes d'hélicoptères en environnements dégradés qui sera intégré sur la version du NH90 destinée aux forces spéciales. La Direction Génerale de l'Armement (DGA) a annoncé l'attribution de cette étude le 3 octobre 2018. Elle concerne le concept de « caméra grand champ » développé par Safran sous l'appellation « Eurofl'eye ». Un système qui avait été présenté au dernier salon Eurosatory. Le système doit aider les pilotes à visualiser leur environnement dans des conditions de visibilité très dégradées. « Eurofl'eye » est composé d'une boule optronique et de quatre paires de capteurs. Le système sera intégré sur la variante du NH90 destiné aux forces spéciales. Cette version du NH90, dérivée du NH90 TTH Caïman Terre, comprend aussi l'intégration d'un boule gyrostabilisée de Safran et d'un affichage numérique pour le casque Topowl de Thales. Selon la DGA, des tests au sol puis sur les simulateurs et les hélicoptères banc d'essais de la DGA à Istres sont prévus. Le 4e Régiment d'Hélicoptères des Forces Spéciales (4eRHFS), futur utilisateur des appareils, sera impliqué dans toutes les étapes de qualification du système. La loi de programmation militaire 2019-2025 prévoit la commande de dix NH90 en variante « Forces Spéciales » dont six livrés d'ici 2025. Ces appareils devraient remplacer les H225M Caracal actuellement employés par le 4e RHFS et dont le transfert à l'armée de l'Air est évoqué depuis plusieurs années. http://www.air-cosmos.com/une-etude-pour-le-nh90-forces-speciales-115611