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Joe Anselmo Michael Bruno July 10, 2020 When he was United Technologies Corp. chairman and CEO, Greg Hayes took a lot of heat for merging his company with Raytheon to create aerospace powerhouse Raytheon Technologies. But the critics have been silenced as defense has cushioned the company from the battering the commercial downturn has inflicted on its Collins Aerospace and Pratt & Whitney operations. Hayes spoke via videoconference with AW&ST Editor-in-Chief Joe Anselmo and Senior Business Editor Michael Bruno. AW&ST: How long will it take the commercial aviation industry to recover from the COVID-19 crisis? Initially, we thought this was going to be like the severe acute respiratory syndrome (SARS) in 2002-03. We thought it was going to be relatively short-lived, where air traffic would go down for a little while but then gradually recover. I don't think any of us envisioned the morbidity or the scope of this pandemic and its impact on travel. I would say we're looking now at getting back to 2019 in 2023, maybe 2024. It is going to be a slow recovery. Raytheon chief looks ahead Commercial aviation recovery will take years Investing in hypersonics Game-changing technologies for a next-generation narrowbody The good news is we've got plenty of liquidity. We'll see our way through this, but it is going to be a tough road. We are hunkering down for a protracted recession on the commercial aero side. Our aftermarket orders are down 50%-plus at both Collins Aerospace and Pratt & Whitney. That's where a lot of the profits come from. The reason we can spend $2.5 billion a year on R&D for the commercial businesses is because we have this spares business that generates strong cash. When that goes away, it's tough. And as a result, we're going to cut R&D this year by $500 million on the commercial side. Unfortunately, the airlines are not in a position to weather this storm for probably more than another 12 months without government assistance. That's really going to be the key. Do governments in the U.S., Europe, South America and across Asia step up to support what is a critical industry in aerospace? Is the industry underplaying the severity of the COVID-19 downturn? A vaccine is the key, and it has to be widely available. The World Health Organization is working on that, but we're going to have hotspots with this pandemic for the next year or two. So even if the U.S. and Europe are completely vaccinated, what does that mean for travel to Africa, Asia, to the fast-growing markets? I'd almost bifurcate the aerospace industry between a narrowbody recovery and widebody recovery. The narrowbody is primarily domestic, whether it's Europe, the U.S. or even China. That will recover more quickly as people become confident-—there's either a vaccine or they've found new treatment options. But on the international side, we can't fly today into Europe, and we don't want the Europeans to fly to the U.S. We can't go to South America or China. Those routes are going to take much, much longer to recover. The fact is there are so many excess aircraft out there right now that we believe you're going to see more parting out of existing fleets before we see a resurgence. And that's why even when passenger traffic starts to come back, there's probably a full 6-12 months before we're going to see a return to normalcy in our aftermarket organization. Pratt supplies the PW1000G engine option for the Airbus A320neo. How much downside risk is there for -deliveries? We're planning for about a 40% reduction in A320 deliveries this year and next year compared with February 2020 production rates. Airbus would love to build more, but it's not clear to us that customers are going to be around to take more than that. The good news is our market share went from about 42% [of A320neo engines] to north of 50% in the last year. Customers are starting to believe in the geared turbofan because of the fuel efficiency. Do you see the market share between Airbus and Boeing shifting? The order book for the A320 is much stronger today, with all the cancellations that we've seen on the 737 MAX because of delays. We still think the 737 will get back in the air this year, and we continue to work with Boeing on software updates. We firmly believe it's a great aircraft. Keep in mind we have about $2.5 million of content per shipset on the 737. It's going to be a tough couple of years, but we ultimately have faith in the airframe and the certification process. Where are you focusing your future efforts with Boeing and Airbus? We were optimistically cautious about the [proposed Boeing] new mid-market airplane (NMA), but there is a lot of excess capacity now, and it's not clear another evolutionary design is going to be the answer. So our focus right now is the next-generation single--aisle. And we think that's probably been pushed out a couple of years, to maybe 2033 or 2035. They're talking about a 30% efficiency gain from the current single-aisle. Two-thirds of that gain has to come from engine design. At the Paris Air Show last year, we talked about a hybrid electric design [Project 804]. We're going to continue on that path. We're trying to figure out how you can have enough power at takeoff while having a much lower fuel consumption at cruise. And that's where hybrid electric comes in. It's going to take us at least a decade to prove that out. I don't know if hybrid electric is the answer. There are other things that we're working on. But obviously it's got to be something completely different than what we've been building in the past. Governments around the world are taking on huge debt to alleviate the coronavirus crisis. Are you worried that will put pressure on military spending over the long term? You would have to have your head in the sand to not understand what's going to happen to defense budgets over time. When [Raytheon CEO] Tom Kennedy and I first talked about this merger, it was, “What can we do together that we can't do separately?” And it really was bringing the technologies of the two companies together to solve customer problems in new and innovative ways. Defense budgets will go down, but I think the real question is where Defense Department spending is going. I remember talking two years ago with [then-Defense Secretary] Gen. [James] Mattis, and he said, “Bring us innovative solutions, not to fight the last war but to fight the next war.” And the next war, he said, is going to be fought in cyberspace and outer space. The capabilities of the legacy Raytheon business are second to none in space and are outstanding on the cyber side. You marry that up with the manufacturing and material science that Pratt & Whitney brings, with the communication systems that Rockwell Collins brings, and this is going to be a great play. The U.S. Air Force wants more software-driven capabilities, delivered in weeks or even days. How does that square with your businesses, which often involve long-term hardware evolutions? It's making sure that we're continuing to evolve our products. The missiles we're delivering today, such as the SM-3 [interceptor] or the SM-6 [anti-air/anti-surface/-ballistic missile defense] are state of the art, and we continue to find new uses for them. A lot of things will change over time in terms of how the weapons are deployed. Think about the Storm-Breaker missile that we just demonstrated, which has the tri-mode seeker. It can do things the last generation of missiles could never do in terms of going through smoke, fog, dust and sand. The LRSO [Long-Range Standoff nuclear cruise missile] is another example. And the Tomahawk is an established product that we will evolve as the needs of the battlefield change to meet new requirements. That's really what we want to focus on: How do we continue software-driven solutions but also find ways to redeploy and reinvigorate the product line and bring new capabilities to the warfighter? Are you making long-term investments in hypersonics? Hypersonics are a destabilizing technology. There's only so much we can talk about, but we know we're behind the Chinese and probably behind the Russians. I think in 3-5 years we'll be on a level playing field. Our focus has been on defensive systems, using space-based assets to track hypersonics. It's nothing that a ground radar could ever do because they move too fast. And then countermeasures that we could use to defend against hypersonics is the bigger market. We're obviously investing. We've got a program, the HAWC [Hypersonic Air-breathing Weapon Concept], which is an air-breathing hypersonic missile that we're working on. I think we'll flight-test that later this year. Also think about the materials science that Pratt brings. The key to hypersonics is how to keep the electronics from getting fried when you're operating at something like 5,000F. We're investing in cooling materials—that will be one of the big bets that we're going to have to make. Tom Kennedy saw the need to make these investments, and we're going to do that. The other piece is on the space side. There's not a lot that we can say, other than that we think space will be the frontier that will differentiate us—that is, the defense of space assets, as well as using space assets to detect, track and target hypersonic weapons. When the merger of United Technologies and Raytheon was announced, there was a lot of criticism from investors. Now they're happy about how well-positioned the combined company is to weather the COVID-19 storm. There was a lot of pushback from investors, especially from the hedge fund guys. They saw us taking a lower-margin business, and they didn't like the fact that the technology takes 5-10 years to pay off. I was roundly criticized. All I can say is I was an idiot a year ago and now I'm a genius, through no fault of my own. We did this for the long term, and it was completely fortuitous that the merger happened when it did. The commercial businesses won't make any money this year, and they are going to struggle for the next couple of years, but now we've got a rock-solid balance sheet and a lot of cash. And that defense business is going to grow 5-8% this year. We've got a good backlog. I'd like to say it was genius, but it really was just doing what's right for the long term. My goal is to leave this company better than I found it. You have reshaped this company, starting with selling Sikorsky to Lockheed Martin in 2015. Then you acquired Rockwell Collins and moved to break up the UTC conglomerate, and it looked like UTC was going to be a commercial aerospace company. Now comes Raytheon. Are you done, or is there more to come? I'm never done until I'm gone, but we don't need to do anything else big. The driving force [behind the Raytheon merger] was putting two big technology companies together with cyclical balance [between commercial and defense]. Tom Kennedy always felt he was at a disadvantage against the Lockheeds of the world because of the scale of Lockheed versus Raytheon. This gives us the scale to invest and compete head on with the Lockheed Martins and Northrop Grummans, as well as being the largest supplier to both Boeing and Airbus. We have some clout in the marketplace. We've got 700,000 different things that we deliver to customers: missiles, APUs, engines, communications gear. Some we really love; others don't have the returns that we want or require too much investment for a limited market. We hope to have a portfolio review done by the end of the year. And you'll probably see some divestitures, but not big pieces. We also continue to look for technology bolt-ons as we think about what's next in defense and the space and cyber spectrums. Longer term, the big question in my mind is what happens to Rolls-Royce, a great technology company that is facing challenging financial circumstances. We loved the partnership Pratt had with Rolls on International Aero Engines. Could we recreate that someday? Perhaps, but not now. Ian Davis, who's the chairman over there, is a good guy. We always say, “Look, we need to find ways to collaborate so we can take on GE Aviation.” Despite the fact that GE may be on its heels today, they've got over 30,000 engines out there. Their aftermarket will recover, they will get better, and they will be the formidable competitor for both Rolls and Raytheon Technologies for the foreseeable future. We're hearing from Wall Street that you're expected to sell off the Forcepoint business. Forcepoint is a commercial cyber business Tom Kennedy created when he brought a couple of companies together about five years ago. It has some great technology, but it clearly doesn't fit in the portfolio. We'll figure that out in the next six months. How is the integration going? Nothing went according to plan except the merger itself. We sent everybody home the week of March 12 [because of COVID-19], and we were still three weeks away from the merger. So we had to complete the merger and all of the integration remotely. And we had to spin off Carrier and Otis. All of that came to fruition on time and exactly as we had planned while working from home. The resilience and the ingenuity of our folks to figure all this out has probably been the most pleasing. There was some concern that the cultures at Raytheon and the commercial guys at Pratt and Collins would never come together. That is the last thing I worry about. Everything we laid out has gotten done. We're on track for synergies in cost, technology and revenue. The difference is I have yet to have a staff meeting in person. I've got 17 people who work for me, and we do everything on Zoom. Each one of our three board meetings since the merger has been done on Zoom. If you had told me 3-4 months ago that we would be working from home for a good deal of time, I'd have really panicked. But we figured it out. https://aviationweek.com/ad-week/ad-week-video-interviews/raytheon-technologies-ceo-riding-out-covid-19-crisis

Tony Osborne July 10, 2020 https://aviationweek.com/ad-week/closer-look-european-aerospace-defense-programs

HASSAN MEDDAH RAFALE , COVID-19 , L'USINE AÉRO , AÉRONAUTIQUE , HAUTS-DE-SEINE PUBLIÉ LE 10/07/2020 À 11H06 Quand l'activité civile flanche, le marché militaire peut prendre le relais. À condition d'avoir déjà un pied dans la place et une vision à long terme. A Villeneuve-la-Garenne (Hauts-de-Seine), la vingtaine de compagnons de la PME Rafaut ne chôme pas. Dans leur atelier de mécanique et d'intégration, ils assemblent des emports, d'imposantes pièces mécaniques destinées à Dassault Aviation. Ces pièces qui se placent sous les ailes des Rafale servent à transporter soit des bombes, soit des réservoirs d'appoint. "Notre dualité est un facteur de robustesse, particulièrement appréciable dans cette crise du secteur aéronautique", se réjouit Bruno Berthet, le président de Rafaut. Les activités de défense ont représenté un véritable amortisseur pour cette PME de 400 salariés, dont les commandes pour Airbus (palonnier, freins de rotors...) se sont écroulées avec la crise du secteur aérien. Rafaut présente le profil quasi parfait de l'entreprise dite duale, avec ses 93 millions d'euros de chiffre d'affaires, répartis équitablement entre les activités civiles et militaires. Le groupe a, certes, fait appel à des mesures de chômage technique, mais de manière modérée en mettant 30 % de son personnel en activité partielle pour deux tiers de leur temps de travail. Pour les autres PME du secteur aéronautique, la défense peut-elle constituer une bouée de sauvetage ? Le ministère des Armées veut y croire et met la main à la poche. À l'occasion de l'annonce du plan de sauvetage de la filière aéronautique, début juin, Florence Parly, la ministre des Armées, a annoncé l'accélération de 600 millions d'euros de commandes militaires. L'armée de l'air a commandé trois long-courriers A 330 qui seront transformés en avions ravitailleurs MRTT. Initialement prévus en 2026, ils seront livrés à partir de l'an prochain. Le troisième exemplaire de l'avion léger de surveillance et de reconnaissance qui devait être livré en 2027 le sera en 2023. Les hélicoptéristes ne sont pas oubliés. L'armée va acheter par anticipation huit hélicoptères Caracal. Ils sont destinés à remplacer les Puma dès 2023, soit avec cinq ans d'avance. Enfin, les PME devraient être les principales bénéficiaires d'une commande de drones de surveillance pour la marine à livrer dès 2022. Des accréditations spécifiques "L'ensemble de ces commandes répond à un besoin opérationnel existant de nos forces armées. Nous allons simplement aller plus vite. Cette anticipation nous permettra de sauvegarder plus de 1 200 emplois pendant trois ans, et cela, partout en France", a précisé Florence Parly. L'initiative n'est pas totalement désintéressée. Le ministère ne voudrait surtout pas voir disparaître des fournisseurs stratégiques emportés par la crise économique. Depuis plusieurs semaines, ses équipes pilotent une task force interministérielle forte d'une centaine de personnes. À charge pour elles de quadriller le territoire, visiter les usines et les bureaux d'études, et d'identifier les entrepreneurs et les domaines à risque. Au total, près de 1 500 entreprises seront visitées. Les entreprises tentées de se diversifier vers la défense doivent impérativement avoir une vision de long terme... comme celles des armées qui s'appuient sur une loi de programmation militaire pluriannuelle. Sur la période 2019-2025, le ministère a consacré la part du lion de son budget à l'aéronautique pour renouveler ses flottes d'appareils, d'hélicoptères, de drones. Soit un montant de 19 milliards d'euros ! Toutefois, il serait illusoire de croire que toutes les PME de l'aéronautique pourront en bénéficier d'un simple claquement de doigts. "Pour servir les armées, les fournisseurs doivent passer par des dispositifs d'accréditation. C'est un long processus. Par ailleurs, ce n'est pas simple d'intégrer comme fournisseur un programme d'armement déjà lancé comme le Rafale ou l'A400M. Les tickets d'entrée sont chers", avertit Matthieu Lemasson, expert des questions aéronautiques et défense pour le cabinet PWC. Le cluster Normandie AeroEspace (NAE), qui regroupe plus d'une centaine de PME de l'aéronautique, est bien conscient de la difficulté. Il a lancé des actions tous azimuts pour accélérer leur diversification et notamment une formation pour obtenir une habilitation et une accréditation défense, sésames indispensables pour travailler dans le domaine de l'armement. Le cluster monte également des rencontres avec des représentants du ministère des Armées, de la Direction générale de l'armement (DGA), des grands industriels de l'armement pour connaître les opportunités à saisir... Avec un exemple à suivre : la PME Gauthier Connectique, fabricant de raccords électriques. Cette société (40 salariés, 5 millions d'euros de chiffres d'affaires) était, il y a dix ans encore, exclusivement positionnée sur l'aéronautique. Déjà présents sur le Rafale, ses raccords électriques sont en passe d'être homologués pour monter sur le M51, le missile stratégique de la dissuasion nucléaire. L'entreprise s'est également diversifiée dans le secteur spatial qui représente un tiers de son activité. "Entre la décision de se diversifier, et les premières commandes, il faut compter environ trois ans. Le fait d'avoir déjà comme clients Dassault Aviation, Safran et Thales nous a beaucoup aidés", souligne son président Luc Sevestre. La PME ne compte pas s'arrêter en si bon chemin. L'entreprise adapte sa technologie au milieu marin et terrestre et tente de séduire Naval Group, de même que Nexter, le fabricant du char Leclerc. Boeing mieux armé qu'Airbus pour traverser la crise ? Airbus va-t-il souffrir plus que son concurrent Boeing pour traverser la crise actuelle ? Si l'avionneur américain traîne le boulet du 737MAX, il a un atout considérable par rapport à son concurrent européen : le soutien du Pentagone, le premier acheteur au niveau mondial d'équipements militaires. Pour les forces armées américaines, Boeing livre à foison des avions de combats (F15 et F18) et des ravitailleurs (KC 46), des hélicoptères d'attaque et de transport de troupe (Chinook, Apache), des missiles... Au total, les activités de la branche défense, sécurité et espace ont pesé pour 34 % de son chiffre d'affaires en 2019, soit 76 milliards de dollars. Pour Airbus, l'activité défense pèse moins de 15 % des activités du groupe, soit 10 milliards d'euros de chiffres d'affaires en 2019. Le groupe avait raté l'occasion historique en 2012 de fusionner avec le britannique BAE Systems. Une telle opération aurait permis d'équilibrer les activités civiles et militaires de l'avionneur, le rêve de Louis Gallois, le président du groupe Airbus (alors EADS) entre 2007 et 2012. « À l'époque, les mauvaises langues disaient qu'il n'y avait pas d'intérêt et peu de synergies à cette opération. Cela aurait probablement constitué un ensemble plus robuste pour traverser la crise actuelle et permis de trouver des synergies utiles aussi bien en matière de gestion des effectifs que des programmes », souligne Matthieu Lemasson, expert des questions aéronautiques et défense pour PWC. https://www.usinenouvelle.com/article/la-defense-planche-de-salut-de-la-filiere-aeronautique.N982761

Nathan Strout The Pentagon's artificial intelligence hub is shifting its focus to enabling joint war-fighting operations, developing artificial intelligence tools that will be integrated into the Department of Defense's Joint All-Domain Command and Control efforts. “As we have matured, we are now devoting special focus on our joint war-fighting operation and its mission initiative, which is focused on the priorities of the National Defense Strategy and its goal of preserving America's military and technological advantages over our strategic competitors,” Nand Mulchandani, acting director of the Joint Artificial Intelligence Center, told reporters July 8. “The AI capabilities JAIC is developing as part of the joint war-fighting operations mission initiative will use mature AI technology to create a decisive advantage for the American war fighter.” That marks a significant change from where JAIC stood more than a year ago, when the organization was still being stood up with a focus on using AI for efforts like predictive maintenance. That transformation appears to be driven by the DoD's focus on developing JADC2, a system of systems approach that will connect sensors to shooters in near-real time. “JADC2 is not a single product. It is a collection of platforms that get stitched together — woven together ― into effectively a platform. And JAIC is spending a lot of time and resources focused on building the AI component on top of JADC2,” said the acting director. According to Mulchandani, the fiscal 2020 spending on the joint war-fighting operations initiative is greater than JAIC spending on all other mission initiatives combined. In May, the organization awarded Booz Allen Hamilton a five-year, $800 million task order to support the joint war-fighting operations initiative. As Mulchandani acknowledged to reporters, that task order exceeds JAIC's budget for the next few years and it will not be spending all of that money. One example of the organization's joint war-fighting work is the fire support cognitive system, an effort JAIC was pursuing in partnership with the Marine Corps Warfighting Lab and the U.S. Army's Program Executive Office Command, Control and Communications-Tactical. That system, Mulchandani said, will manage and triage all incoming communications in support of JADC2. Mulchandani added that JAIC was about to begin testing its new flagship joint war-fighting project, which he did not identify by name. “We do have a project going on under joint war fighting which we are going to be actually go into testing,” he said. “They are very tactical edge AI is the way I'd describe it. That work is going to be tested. It's actually promising work — we're very excited about it.” “As I talked about the pivot from predictive maintenance and others to joint war fighting, that is probably the flagship project that we're sort of thinking about and talking about that will go out there,” he added. While left unnamed, the acting director assured reporters that the project would involve human operators and full human control. “We believe that the current crop of AI systems today [...] are going to be cognitive assistance,” he said. “Those types of information overload cleanup are the types of products that we're actually going to be investing in.” “Cognitive assistance, JADC2, command and control—these are all pieces,” he added. https://www.c4isrnet.com/artificial-intelligence/2020/07/08/pentagon-ai-center-shifts-focus-to-joint-warfighting-operations/

By: Joe Gould WASHINGTON ― The Pentagon would have $758 million to help mid-tier defense firms weather the financial effects of the coronavirus pandemic as part of the annual defense spending bill approved by the House Appropriations Committee on Wednesday. But the aid, which was part of the panel's proposed $694.6 billion bill, falls short of the “lower double-digit billions” Pentagon officials say defense firms will claim under the stimulus bill Congress passed in March. As Congress debates the next stimulus, the defense industry has been urging lawmakers to appropriate enough to reimburse the Pentagon's suppliers for pandemic-related disruptions. Under Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act, contractors can seek to recover such costs, but Congress has yet to appropriate money for it. “While helpful and our industry appreciates the recognition of the need in the HAC mark and all the support we have received from the Pentagon and Congress to date, this level is insufficient to provide the support indicated previously by [the Office of the Secretary of Defense] and also by company leaders who have been communicating with the Pentagon, the Congress and the White House, including [the Office of Management and Budget],” said National Defense Industrial Association Vice Chairman Arnold Punaro. “We are urging that the next stimulus bill provide the needed funds particularly to support section 3610, the reasonable adjustments due to disruptions, and the added costs of protecting the workforces and doing business in a COVID-19 environment,” he added. Not all of the details of the defense bill were available Wednesday, but a committee summary says it provides “$758 million to mitigate the impacts of COVID on second, third, and fourth tier suppliers in the Defense Industrial Base.” Such support would supplement $688 million for the defense-industrial base that the Department of Defense previously set aside as part of the $10.5 billion it got from the coronavirus relief fund created under the CARES Act. Under Secretary of Defense for Acquisition and Sustainment Ellen Lord warned Congress last month that the DoD's pandemic-related costs, which include 3,610 claims, may nonetheless force it to dip into modernization and readiness accounts if Congress doesn't backfill the money. “The department does not have the funding to cover these costs,” she said. The House Appropriations Committee's bill is not the last word, and Republicans, who control the Senate and the White House, will negotiate over the final numbers. “FY21 appropriations bills must be changed before they have any chance of becoming law,” the panel's top Republican, Rep. Kay Granger of Texas, said Tuesday. This week, Senate Majority Leader Mitch McConnell, R-Ky., began to outline a forthcoming GOP-drafted coronavirus relief package, but it was not immediately revealed what the Pentagon's share might be. House Democrats are reportedly seeking $250 billion in emergency spending for an array of issues, to include rural broadband and transportation infrastructure to health care and global coronavirus relief. As lawmakers reconcile these many priorities, at least one one influential lawmaker on defense ― House Armed Services Committee Chairman Adam Smith, D-Wash. ― has said repeatedly that the Defense Department should draw from its existing budget. The Project on Government Oversight's Mandy Smithberger said the Pentagon has yet to make the case that payments to the defense industry will be the best means to stimulate the economy. “Even though they often don't act like it, resources are still limited to a degree and Congress has to consider fairness as part of that distribution, including who needs the government's help most, and which sectors are going to do the most to help the country,” Smithberger said. “These companies have much better access to capital than a number of other industries and individuals. Even from a reviving-the-economy perspective, this sector has always been one of the poorer performers per dollar for job creation.” The health care and education sectors create more than twice as many jobs per $1 million than the military, and the energy and infrastructure sectors create 40 percent more, according a 2019 analysis by the Costs of War project at Brown University. https://www.defensenews.com/congress/2020/07/08/house-panel-isnt-giving-defense-industry-all-the-covid-aid-it-wants/

NAVY Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $56,100,000 not-to-exceed, undefinitized contract modification (P00018) to previously awarded cost-plus-incentive-fee contract N00019-19-C-0010. This modification provides systems integration engineering support and procures long lead material to ensure the ASQ-239 electronic warfare/countermeasures production capability remains on track to meet Lot 17 deliveries. This modification provides for the continuation of Block 4 electronic warfare development without creating a gap in engineering resources in support of the Navy, Air Force and non-Department of Defense (DOD) participants. Work will be performed in Nashua, New Hampshire (85%); and Fort Worth, Texas (15%), and is expected to be completed by December 2020. Fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $6,986,000; fiscal 2020 research, development, test and evaluation (Air Force) funds in the amount of $6,986,000; and non-DOD participant funds in the amount of $3,026,680, 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. Liberty JV,* Yuma, Arizona, is awarded a $40,000,000 maximum amount, indefinite-delivery/indefinite-quantity architect-engineering contract for environmental restoration projects at various locations in the Naval Facilities Engineering Command (NAVFAC) Northwest area of responsibility (AOR). No task orders are being issued at this time. Work will be performed at various government installations within the NAVFAC AOR including, but not limited to, Washington (75%); Alaska (22%); Idaho (1%); Montana (1%); and Oregon (1%). The work to be performed provides for environmental restoration services under the Defense Department's Environmental Restoration Program, which includes the Installation Restoration Program and Munitions Response Program, complies with the Comprehensive Environmental Response, Compensation and Liability Act, and supports the Navy and Marine Corps base realignment and closure effort and similarly complex local and state environmental investigations. The term of the contract is not to exceed 60 months and work is expected to be completed by July 2025. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $1,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by environmental restoration (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website and four proposals were received. The Naval Facilities Engineering Command Northwest, Silverdale, Washington, is the contracting activity (N44255-20-D-5006). Jacobs-EwingCole JV, Pasadena, California, is awarded a $29,944,543 firm-fixed-price task order (N62473-20-F-4714) under an indefinite-delivery/indefinite-quantity contract for post-award design services (PADS) and post-construction award services (PCAS) to support multiple construction projects related to the fiscal 2020 and 2021 military construction (MILCON) earthquake recovery and repair program at Naval Air Weapons Station (NAWS), China Lake, California. The task order also contains one unexercised option, which if exercised, will increase cumulative task order value to $36,456,778. Work will be performed in Ridgecrest, California. The work to be performed provides for PADS and PCAS for various fiscal 2020 and 2021 MILCON and repair projects; 18 MILCON projects; and 25 repair projects will be constructed at NAWS China Lake as a part of the earthquake recovery program. The contractor will provide architect-engineer services to address any post-award design and construction related issues for the MILCON and repair projects. The contractor will also provide assistance to the government during the development of responses and requests for information from the contractors performing the construction effort for the projects. Work is expected to be completed by April 2024. Fiscal 2020 MILCON (Navy) contract funds in the amount of $29,944,543 are obligated on this award and will not expire at the end of the current fiscal year. One proposal was received for this task order. The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-18-D-5801). Salient CRGT Inc., Fairfax, Virginia, is awarded a $21,984,298 firm-fixed-price, indefinite-delivery/indefinite-quantity, single award contract to provide support with program management, program planning and execution, Joint Staff actions process training, Actions Division customer service help desk services, strategic planning and analysis assistance, correspondence management and communications and editorial functions in support of the Joint Staff Actions Division. The contract will include a 60-month base ordering period, with no option period. Work will be performed in Arlington, Virginia (85%); Fairfax, Virginia (10%); and Suffolk, Virginia (5%). The ordering period will be completed by July 2025. Fiscal 2020 operations and maintenance (O&M) (Defense-wide) (DW) funds in the amount of $10,000 will be obligated to fund the contract's minimum amount and will expire at the end of the current fiscal year. Subsequent task orders will be funded with the appropriate fiscal year O&M, DW funds. This contract was competitively procured with the solicitation posted through Navy Electronic Commerce Online and beta.SAM.gov website and 15 offers were received. The Naval Supply Systems Command Fleet Logistics Center Norfolk, Contracting Department, Philadelphia Office, Philadelphia, Pennsylvania, is the contracting activity (N00189-20-D-Z023). Lockheed Martin, Baltimore, Maryland, is awarded a $16,345,048 firm-fixed-price contract for the refurbishment of rocket motors and thrust vector control used on vertical launch assemblies for anti-submarine rocket assisted torpedoes. If the option is exercised, the work will be completed by July 2023, bringing the total value of the contract to $30,630,048. Work will be performed in Baltimore, Maryland (44%); Dulles, Virginia (29%); and Owego, New York (27%). The base period of this contract is expected to be completed by October 2022. Weapons procurement funds (Navy) in the full amount of $16,345,048 will be obligated at time of award and will expire at the end of the current fiscal year. One company was solicited for this sole-source requirement pursuant to the authority set forth in 10 U.S. Code 2304 (c)(1) and one offer was received. The Naval Supply Systems Command Weapon Systems Support, Mechanicsburg, Pennsylvania, is the contracting activity (N00104-20-C-K045). DEFENSE LOGISTICS AGENCY AM General LLC, South Bend, Indiana, has been awarded a maximum $44,095,015 firm-fixed-price requirements contract for High Mobility Multi-Purpose Wheeled Vehicle diesel engines with containers. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition regulation 6.302-1. This is a three-year contract with no option periods. Location of performance is Indiana, with a July 8, 2023, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2020 through 2023 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-20-D-0118). Marlex Pharmaceuticals Inc., New Castle, Delaware, has been awarded a maximum $9,274,712 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for various pharmaceutical products. This was a competitive acquisition with one response received. This is a one-year base contract with nine one-year option periods. Location of performance is Delaware, with a July 8, 2021, ordering period end date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2020 through 2021 Warstopper funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D0-20-D-0008). ARMY VS2 LLC, Alexandria, Virginia, was awarded a $36,672,648 cost-plus-fixed-fee contract for logistics support services (maintenance, supply and transportation) at Fort Benning, Georgia. Bids were solicited via the internet with nine received. Work will be performed in Chattahoochee, Georgia, with an estimated completion date of July 8, 2025. Fiscal 2020 operations and maintenance (Army) funds in the amount of $2,077,440 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-20-F-0305). Manson Construction Co., Seattle, Washington, was awarded an $8,330,800 firm-fixed-price contract for dredge work in the Mississippi River. Bids were solicited via the internet with three received. Work will be performed in Venice, Louisiana, with an estimated completion date of Oct. 30, 2021. Fiscal 2020 civil operations and maintenance funds in the amount of $8,330,800 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-20-C-0030). DEFENSE INTELLIGENCE AGENCY IT Concepts Inc., Vienna, Virginia, was awarded a $26,308,755 labor-hour contract (HHM402-20-C-0038) to develop, update, sustain, operate and enhance a software tool capability to be used by members of the acquisition, requirements, operational and intelligence communities to support and aid in the identification of intelligence requirements, management of priorities, planning and production of intelligence products, enterprise data analytics, communication and other associated processes. Work will be conducted in Vienna and Charlottesville, Virginia, with an expected completion date of June 2025. Fiscal 2020 operations and management funds in the amount of $1,023,586 are being obligated at time of award. This contract was awarded through an 8(a) set-aside and five offers were received. The Virginia Contracting Activity, Washington, D.C., is the contracting activity. AIR FORCE Innovative Scientific Solutions Inc., Dayton, Ohio, has been awarded a not-to-exceed $20,000,000 indefinite-delivery/indefinite-quantity modification (P00005) to contract FA8650-13-D-2343 for advanced propulsion concepts and cycles research and development. Work will be performed in Dayton, Ohio, and is expected to be completed June 18, 2022. Fiscal 2020 research, development, test and evaluation funds in the amount of $1,750,000 are being obligated at the time of award under task order FA8650-17-F-2009. Total cumulative face value of the contract is not-to-exceed $64,560,000. Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity. Ball Aerospace & Technologies Corp., Beavercreek, Ohio, has been awarded a $7,687,489 cost-plus-fixed-fee contract for Infrared Radiation Effects Laboratory (IRREL) operation and improvements program. The objective of this effort is to provide radiometric and radiation characterizations of focal plane arrays (FPAs) and associated devices. The effort includes developing innovative techniques to advance the state of the art in the characterization of infrared and visible FPAs and associated devices. These innovative techniques include the development of characterization and analytical techniques, test hardware and operational and test procedures that advance the experimental capabilities of the IRREL. Work will be performed in Albuquerque, New Mexico, and is expected to be completed Oct. 10, 2025. This award is the result of a competitive acquisition with one offer received. Fiscal 2020 research, development, test and evaluation funds in the amount of $150,000 are being obligated at time of award. The Air Force Research Laboratory, Kirtland Air Force Base, New Mexico, is the contracting activity (FA9453-20-C-0015). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2269384/source/GovDelivery/

Mark Pomerleau At air bases across Europe, networks are under attack. Malicious hackers have gained access to sensitive systems, information, controls and critical infrastructure. But cyber operators from U.S. Cyber Command, in concert with Five Eyes partners, have been called in to thwart these attempts in real time. This was the main scenario for this year's capstone cyber training exercise put on by Cyber Command, Cyber Flag 20-2. The exercise, which took place June 15-26 and was exclusively defensive in nature, saw more than 500 participants and 17 teams participating from five countries across nine time zones, and it included America's National Guard, the U.S. Energy Department and the Five Eyes alliance — Australia, Britain, Canada, New Zealand and the U.S. Australia, however, did not participate during this iteration. Officials told reporters this week that the purpose of Cyber Flag 20-2 was to continue building the community of defensive cyber operations and to improve the overall capability of the Five Eyes countries to defend against cyber aggressors. The drill involved teams defending IT and operational security networks against a live, opposing force trying to disrupt, deny and degrade the air bases' operations. The networks under attack were industrial control systems simulated to generate network traffic for an aviation fuel farm, power grid, air traffic control radars and electronic access control systems. The attacks came in the form of malware that targeted devices responsible for fuel and power. But the unique aspect of this year's exercise, as C4ISRNET previously reported, was the use of a new remote cyber training tool called the Persistent Cyber Training Environment. PCTE is an online client that allows Cyber Command's cyber warriors, as well as partner nations, to log on from anywhere in the world to conduct individual or collective cyber training as well as mission rehearsal, which to date had not existed for the cyber force as it does for physical troops. The program is run by the Army on behalf of the joint cyber force. The platform not only allowed the exercise to continue as planned amid the coronavirus pandemic, but it enabled collaboration and simultaneous training across the world. A new way to train Officials say PCTE is providing Cyber Command with an entirely new way to train cyber forces, which previously was difficult given a lack of infrastructure and the time needed to set up ranges and scenarios. It also allows Cyber Command and military units to conduct more frequent training. Cyber Flag typically was Cyber Command's largest and only holistic tactical training event, held annually during June. For units, aside from Cyber Flag, there were no other ways to stay sharp on their skills unless they built their own environments. Now, Cyber Command plans to hold more exercises, with Cyber Flag 20-3 occurring in the fall. “The delivery of the Persistent Cyber Training Environment absolutely allows us to increase the frequency and the complexity of exercises that are conducted by the command itself,” Coast Guard Rear Adm. John Mauger, director of exercises and training at Cyber Command, told reporters. “Going forward, I would expect you to see a series of exercises throughout the year where we are reaching out to the different teams to test their capabilities or to focus on specific issues that are of concern or interest to us. “Going forward, we're going to get the benefits of both those distributed exercises along with increasingly complex exercises as PCTE is instantiated across both the secret network and the top-secret network.” Scenarios and environments can be stored, saved, reused and modified if needed in the system for later exercises. Smaller units will also be able to leverage these scenarios to practice whenever needed. The PCTE virtual environment for this year's exercise included 25 interconnected ranges of more than 3,000 virtual machines — a high-fidelity network that simulated and emulated open internet traffic with more than 4,000 static websites that store and share data. The simulated air base networks created in PCTE had fully configured Windows active directory domains with over 100 nodes running more than 10 types of major operating systems, along with 35 simulated user control workstations actively surfing the internet and using Microsoft Office products to access, create and transfer files. Moreover, officials also explained PCTE can be integrated into larger, multi-combatant command-type exercises to simulate the cyber effects, such as Global Lightning and its companion Cyber Lightning. Global Lightning is an annual global exercise run by Strategic Command to test integration across several geographic and functional combatant commands. Cyber Lightning is Cyber Command's portion to the exercise. “We think that is the next evolution of the Persistent Cyber Training Environment and how we take to the tier 1 exercises, incorporate cyber effects. They're no longer white-carded,” Col. Tanya Trout, Cyber Command's PCTE director and acting director of the Joint Cyber Training Enterprise, told reporters. White carding involves telling exercise participants that a certain action has occurred. This was typical of cyber effects, given it was difficult to realistically simulate them, which diminished the training value in exercises because participants didn't experience the full breadth of these actions. Now, these activities can play a real role in exercises increasing the overall fidelity of training across the joint force and continuity of all operations of warfare. The system will also be able to be used for mission rehearsals. A Cyber Command official said the force can input prior operations, such as those used against the Islamic State group, to train against. Additionally, they'll be able to upload to the platform malware discovered in operations. The PCTE program office, which is in the prototyping phase despite delivering the first portion to Cyber Command in February 2020, also learned valuable lessons in Cyber Flag. Officials said the two-week exercise provided the program office with six months' worth of data it can use to make significant improvements. Prior to the February delivery, the program office leveraged several smaller-scale training events at the unit level to incrementally increase capabilities and scalability as well as help geographically dispersed teams prepare for tier 1 exercises like Cyber Flag. Overall, officials are happy with how the system performed in its first tier 1 exercise, pointing to little to no latency issues, though there were periodic improvement tickets. “What we found through the rapid development and use of the Persistent Cyber Training Environment is that we really have a unique capability to move forward with,” Mauger said. https://www.c4isrnet.com/dod/cybercom/2020/06/25/this-training-tool-could-be-the-answer-to-stop-mass-cyberattacks

Mark Pomerleau U.S. Cyber Command's new training platform is slated to deliver the second iteration this fall providing additional capabilities and user capacity, program officials said. The Persistent Cyber Training Environment (PCTE) is an online client that allows Cyber Command's warriors to log on from anywhere in the world to conduct individual or collective cyber training as well as mission rehearsal. The program is being run by the Army on behalf of the joint cyber force and Cyber Command. Officials delivered the first version of the program to Cyber Command in February and the environment was used for the first time in Cyber Command's premier annual tier 1 exercise Cyber Flag in June. The second version is expected to include additional capabilities, including allowing more users to conduct team or individual training. “Things like to be able to schedule, have a calendar to be able to auto-schedule things, to be able to allocate resources because right now it's you can get in and you can do it but how do you deconflict? If you're running a team based event across x number of services how does somebody else come in and do an individual training,” Amit Kapadia, chief engineer for the program, told C4ISRNET in an interview. “Do you have the right infrastructure underneath?” Kapadia added that during the COVID-19 pandemic, there was a surge in platform use due to the remote working, thus, by the end of this year, the program seeks to push additional compute and network capabilities. Leaders are targeting final testing in September and then a roll out in late fall for version 2.0. The program has also sought to deliver incremental capability along the way through what it calls cyber innovation challenges. These are competitions to awards and layer new technologies onto the platform. There was a notice informing industry of the fourth such innovation challenge released recently. Officials told C4ISRNET they expect to release a formal solicitation around August, with plans to award contracts by the end of the year or early next year. The officials noted that just like with the previous innovation challenges, there could be multiple vendors awarded and specifically non-traditional defense vendors. Moreover, they also anticipate to continue these challenges for the foreseeable future even when a vendor is selected to be the integrator for PCTE through what's known as the Cyber Training, Readiness, Integration, Delivery and Enterprise Technology (TRIDENT), a contract vehicle to offer a more streamlined approach for procuring the military's cyber training capabilities. The contract is valued at up to $957 million. This approach, officials said, prevents vendor lock and ensures the program is at the tip of the technological spear. The fourth cyber innovation challenge seeks to ask industry for assistance in traffic generation – which means emulating fake internet traffic on the platform – and assessment, which was a key requirement directly from Cyber Command. “I would say what we've been driven towards right now are high priorities coming down from [Cyber Command commander] Gen. [Paul] Nakasone and Cyber Command for things like CMF assessment,” Kapadia said. “They want to be able now ... all these reps and sets that are happening within PCTE, how am I assessing the performance of the individuals in my teams.” An integrated and agile approach Since the platform was delivered to Cyber Command in February, command leaders have officially taken the burden of running training exercises from the program office, freeing it up to focus on pursuing new technologies and fixes as well as the overall acquisition. In the past, the program office worked with specific units to conduct training events in order to stress the platform and gain valuable feedback. Now, Cyber Command has created what is called the Joint Cyber Training Enterprise, which is the non-material companion to the PCTE platform and seeks to operate and synchronize training hosted by PCTE for the joint force. “The JCTE is a lot like the combat training center ops group where they are managing the platform, they are running the platform, they are running the training,” Lt. Col. Thomas Monaghan, product manager of cyber resiliency and training at Program Executive Office Simulation, Training and Instrumentation, told C4ISRNET. “So we delivered the platform to them and they're using it I would probably say on a weekly basis. They're doing cyber training events that we don't manage that anymore. We don't stand them up. The platform is being used, we're able to concentrate on specific capability, platform enhancements.” JCTE has formalized the cyber training and use of the environment while also coordinating which cyber mission force units need to conduct which types of training, something the program office wasn't equipped to do. Monaghan said his office is in almost hourly, or at least daily, contact with JCTE to better understand what users like, don't like or needs to be fixed. “We've got the program office, we've got the user community, we've got the operational arm of the user community, which is JCTE, we've got the Army capability manager codifying the requirements all working together. We literally talk to each other at least daily,” Monaghan said. “That direct feedback loop is one continuous circle of information. That's the only way a program this robust can be successful.” Program officials said they gained valuable insights from the recently concluded Cyber Flag, which created roughly six months worth of data. They explained that while not every element worked exactly as planned, the nature of the program allows for incremental and ongoing adjustments to be made. By leveraging specific flexible acquisition tools, the program is not as rigid as other typical military platforms, such as tanks. “It's a perfect one for PCTE because it created that box basically saying in laymen's terms we have no idea what this specifically looks like but we have some eye level things that it should do,” Liz Bledsoe, deputy product manager, told C4SIRNET, regarding the types of acquisition mechanisms PCTE is being run under. Monaghan added: “That's the way the platform and the program were structured when the requirements were written, some of them were listed as evolving or threat based or capability ... They're ever evolving, ever enhancing based off the needs of the cyber mission force.” https://www.c4isrnet.com/cyber/2020/07/07/cyber-command-will-get-a-new-version-of-its-training-platform-this-fall/

By: JihFen Lei If you're reading this over the internet, you're using technology developed by the Department of Defense science and technology enterprise. For decades, the DoD has cultivated a wide-ranging ecosystem of technical professionals, research infrastructure and partnerships that has made vast contributions to U.S. national security and economic strength. From microchips to the GPS satellites that enabled a revolution in precision warfare, the department's S&T enterprise has been central to creating the security and prosperity our nation enjoys today. Although technology dominance has long been central to the American way of war, U.S. military superiority is increasingly under threat. American adversaries are making rapid technological advancements and incorporating them into newly modernized forces. In response, the department has been working to aggressively position its S&T enterprise to meet the security needs of the 21st century. Long-term success will require concentration in three fundamental areas: First, we must invest for the future while focusing on the present. This requires investing in foundational research that will create the next generation of military superiority. Second, we must cultivate a workforce of scientists and engineers ready to solve the DoD's hardest problems. Finally, we must create and maintain world-class defense laboratories and research facilities, enabling us to work with academic and industrial partners to quickly transition technology into capabilities. Each of these elements are critical to nurturing an innovation ecosystem optimized for the department's needs. The road to the next great scientific or technological advance starts with basic science and research. Basic research is central to the DoD's long-term competitive strategy to create and maintain military superiority for the nation. The DoD has a long history of conducting and sponsoring basic research, focusing on understanding how and why things work at a fundamental scientific level. Although basic research is often performed without obvious or immediate benefit and requires long timelines to realize its impact, the importance of continued investment cannot be overlooked. Without the department's basic research investments — made years ago — in the new areas of autonomy, quantum science, artificial intelligence and machine learning, or biotechnology, the DoD would not possess the innovative and advanced capabilities it does today. Basic research enables the U.S. to create strategic surprise for its adversaries and insulates the nation from technological shocks driven by the advancements of others. Stable and healthy investment in basic research is not only good to have, it is a vital component of the nation's strategy to maintain a competitive advantage. The DoD must use all of the tools at its disposal to develop a skilled, diverse workforce of technical professionals who are knowledgeable about the DoD's missions and capable of advising DoD leaders on technology decisions. This includes the scientists and engineers who will conduct research in DoD laboratories and engineering centers, our industry partners, and the academic research community with whom the department closely collaborates. There is nothing more critical to the American military's ability to innovate than its people. For these reasons, the department relies on authorities provided by Congress to conduct flexible, direct hiring of technical professionals to work in DoD research institutions. The department looks for the best technical professionals to join its ranks as researchers, engineers and trusted advisers to the DOD's senior leaders. When the department attempts to incorporate new knowledge from academia or new technologies from industry, the DoD's S&T workforce must be capable of making smart buying decisions based on sound technical judgment and an understanding of the DoD's unique mission needs. At a time when other nations are prioritizing the recruitment of technology professionals to bolster their military strength, the department must view its S&T workforce as a strategic resource that is fundamental to long-term technological superiority. Many capabilities found at DoD labs are unique national treasures and cannot be found elsewhere. On average, these laboratories, which span 63 locations across 22 states and the District of Columbia, are over 45 years old. As part of its strategy to recruit and retain a world-class S&T workforce, the department must modernize its technical infrastructure, laboratories and engineering centers. The DoD should invest wisely to modernize these outdated facilities and their equipment to support the modern, cutting-edge research that our national defense demands. As the nation once again prepares to engage in long-term strategic competition, the DoD's S&T enterprise is the key to success. Sufficiently resourcing long-term research and technology development activities will ensure America avoids technology surprise while creating a disproportionate advantage for the war fighter. The department must make the investments necessary to educate, attract and retain the world's best talent. As the DoD's National Defense Strategy makes clear, advanced technologies will be central to America's ability to fight and win future wars. https://www.defensenews.com/opinion/commentary/2020/07/08/dod-must-modernize-infrastructure-to-support-cutting-edge-technology-research/