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By: Bill Brown, L3Harris Technologies The Department of Defense and defense industry have a long history of responding quickly and forcefully to crisis, and the COVID-19 pandemic is no exception. Today, hundreds of thousands of dedicated defense workers remain at their posts – delivering mission-critical products and services to support our troops around the world, while also providing personal protective equipment and other supplies to first responders and health care workers here at home. However, this most recent crisis has re-exposed weaknesses in our defense industrial base – highlighting the need to significantly bolster the nation's vital supply chain. This serves as a call to action to develop a strategic, long-term approach across government and industry. We witnessed the fallout from the 2008-09 financial crisis. Thousands of suppliers shuttered or permanently shifted precious capacity to other verticals when defense budgets were indiscriminately cut following the Budget Control Act of 2011 and sequester of 2013. When budgets began to recover several years later, the damage was clear – longer lead times that in some cases doubled or more, and increased reliance on single-source and international suppliers for critical components, such as microelectronics. In 2017, President Trump signed an executive order and established a multi-agency task force to study supply chain resiliency. The task force identified five macro forces that create risk to the supply chain and national security preparedness including sequestration and the uncertainty of government spending, the overall decline of U.S. manufacturing capabilities and capacity, harmful government business and procurement practices, industrial policies of competitor nations, and diminishing U.S. STEM and trade skills. Task force members proposed a comprehensive set of risk-reduction actions – ranging from establishing sustained and predictable multi-year budgets and developing an adaptive acquisition framework, to directing investment to small businesses and diversifying the supplier base. Over the past two years, the government has made initial strides on a number of these fronts, including working to reduce U.S. reliance on foreign sources for critical rare earth minerals and decreasing the country's dependence on China and other international suppliers for semiconductors and related components. Unfortunately, the COVID-19 pandemic emerged before these and other task force initiatives gained serious traction and forced the DoD to refocus its near-term priorities. And the urgency escalated when we began to see the brutal impact the pandemic was causing in the commercial aerospace sector, an important vertical market for many defense suppliers. The department quickly designated defense suppliers as essential and increased progress payments, spurring larger defense contractors to accelerate payments to thousands of small business suppliers. These actions helped companies to continue operating, maintain their employment and hiring goals, and sustain critical spending on internal research and development (IRAD) to keep the innovation engine humming. At L3Harris, for example, we recommitted to investing nearly 4 percent of revenues in IRAD, hiring 6,000 new employees and maintaining our apprenticeship and internship programs to provide opportunities for the workforce of the future. The combined DoD and industry efforts demonstrate the power of a focused, collaborative approach to mitigate and address the damaging effects of the pandemic and to support the broader defense industrial base. Today, we are at a critical juncture. We have an opportunity to make the necessary strategic investments that could significantly strengthen our supply base for generations to come, including: · Ensure sustained/predictable budgets – stable, long-term funding helps companies better plan and encourages them to invest in staffing, technology and facilities needed for the country to maintain its technical superiority. Now is not the time to pull back the reins on defense spending. · Accelerate contract awards – shorter decision and acquisition cycles enable suppliers to invest in and deliver technologies faster than with traditional methods, and in the near term could help offset the impact of the commercial aerospace downturn. · Expand domestic supplier base – increasing domestic capabilities reduces vulnerabilities and increases access to critical components, such as rare earths and microelectronics, and over time can help reduce the proportion of sole/single-source supply. · Increase workforce investment – providing advanced STEM education opportunities drives innovation and productivity by enhancing critical skillsets for existing employees, while attracting, training and growing the workforce of the future. · Institutionalize process improvements – the COVID-19 pandemic forced government and industry to find new and more efficient ways to work. The challenge now – to make these advances permanent. These are not quick fixes. However, they provide a strong platform for a more resilient national defense supplier base, which is vital at a time when near-peer adversaries continue to invest heavily in new technologies that threaten our nation's security. The imperative is clear – and the opportunity is now. Bill Brown is chairman and CEO at L3Harris Technologies. https://www.defensenews.com/opinion/commentary/2020/05/18/our-nations-defense-supply-chain-imperative/

AIR FORCE Northrop Grumman Systems Corp., Redondo Beach, California, has been awarded a not-to-exceed $2,375,000,000 undefinitized contract modification (P00013) to contract FA8810-18-C-0006 for Next Generation Overhead Persistent Infrared Polar Space Vehicles 1 and 2. This modification adds Phase One for design/development, critical path flight hardware procurement, and risk reduction efforts leading to a critical design review to the basic contract. Work will be performed in Redondo Beach, California, and is expected to be completed by December 2025. Fiscal 2020 research, development, test and evaluation funds in the amount of $70,500,000 are being obligated at the time of award. Total cumulative face value of the contract is $2,419,295,532. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. Lockheed Martin Corp., Orlando, Florida, has been awarded a ceiling $485,000,000 indefinite-delivery/indefinite-quantity contract for Department of Defense and Foreign Military Sales (FMS) Sniper, Infrared Search and Track (IRST); and Low Altitude Navigation and Targeting Infrared for Night (LANTIRN) navigation pod (fixed wing) hardware production. This contract provides the necessary resources required for the management, fabrication, upgrade/retrofit, integration support and testing and shipping of its non-developmental item (NDI) Sniper Advanced Targeting Pods (ATP) System, NDI LANTIRN Fixed Image Navigation Set upgrades, and the NDI IRST system as it relates to the requirements document associated with each specific delivery order placed under this contract. Work will be performed in Orlando, Florida, and various locations to be identified at the order level. The work is expected to be completed by May 2025. This contract involves FMS to (this list is not all inclusive): Bahrain, Belgium, Bulgaria, Canada, Egypt, Greece, Indonesia, Iraq, Israel, Jordan, Republic of Korea, Kuwait, Morocco, Netherlands, Norway, Oman, Pakistan, Poland, Qatar, Romania, Saudi Arabia, Slovakia, Taiwan, Thailand and Turkey. This award is the result of a sole-source acquisition. FMS funds in the amount of $34,900,000 are being obligated at the time of award under delivery order FA8540-20-F-0034 for the country of Morocco. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8540‐20‐D‐0001). Canadian Commercial Corp., Ottawa, Canada, has been awarded a $44,473,960 indefinite-delivery/indefinite-quantity contract for the installation of the Block Upgrade 7.0/8.1 kits into C-130J cargo aircraft. This contract provides for installation of government provided BU 7.0/8.1 kits into designated C-130J aircraft. Work will be performed in British Columbia, Canada, and is expected to be completed by Oct. 5, 2025. This award is the result of a competitive acquisition and four offers were received. Fiscal 2020 aircraft procurement funds in the amount of $4,690,950 are being obligated at the time of award. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8625-20-D-2016). The Corporation of Mercer University, Warner Robins, Georgia, has been awarded a $9,039,309 task order (FA8523-20-F-0029) on basic contract FA8523-20-D-0001 to provide Laboratory Intelligence Validated Emulators (LIVE)-Virtual-Constructive (LVC) closed loop engineering test and evaluation of newly developed electronic warfare (EW) systems. This order provides integration of gold-standard intelligence community threat definitions into the Electronic Warfare and Avionics Integrated Support Facility, where LVC closed loop operational test – vertical testability demonstration simulations and testing will be conducted to inform the baseline capability and to identify growth areas for improving operational survivability, reliability and mission success of fielded EW systems in support of airborne U.S. warfighting elements. Work will be performed in Warner Robins, Georgia, and is expected to be completed by May 13, 2022. Fiscal 2020 operations and maintenance funds in the amount of $4,140,106 are being obligated at the time of award. The Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity. JOINT ARTIFICIAL INTELLIGENCE CENTER Booz Allen Hamilton Inc., McLean, Virginia, has been awarded a five-year, $800,000,000 task order contract (47QFCA20F0032) to deliver the Joint Artificial Intelligence Center (JAIC) artificial intelligence (AI) enabled products to support warfighting operations and be instrumental in embedding AI decision-making and analysis at all tiers of Department of Defense (DOD) operations. This is a General Services Administration (GSA) Alliant 2 government-wide acquisition contract for AI products that will leverage the power of DOD data to enable a transformational shift across the DOD that will give the U.S. a definitive information advantage to prepare for future warfare operations. Specific tasks of this order will encompass a wide mix of technical services and products across the full spectrum of technical support to the JAIC Joint Warfighter National Mission Initiative. This will include data labeling, data management, data conditioning, AI product development, and the transition of AI products into new and existing fielded programs and systems across the DOD. The task order contract award has a base period through May 2021 with option years that run through May 2025. GSA Federal Systems Integration and Management Center, Washington, D.C., is the contracting activity. ARMY Lockheed Martin Corp., Grand Prairie, Texas, was awarded a $497,301,405 modification (P00035) to contract W31P4Q-17-D-0026 for Phased Array Tracking on Radar to Intercept Advanced Capability-3 missile support center post-production support. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of May 18, 2022. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Central Environmental Inc., Anchorage, Alaska, was awarded a $26,990,428 firm-fixed-price contract to relocate an existing road. Bids were solicited via the internet with two received. Work will be performed in Porterville, California, with an estimated completion date of July 30, 2021. Fiscal 2018 civil construction funds in the amount of $26,990,428 were obligated at the time of the award. U.S. Army Corps of Engineers, Sacramento, California, is the contracting activity (W91238-20-C-0009). Dignitas Technologies LLC,* Orlando, Florida, was awarded an $8,723,110 firm-fixed-price contract to provide technical and management support for the Program Executive Office for simulation, training and instrumentation and provide access to Army Mission Command information systems. Bids were solicited via the internet with five received. Work will be performed in Orlando, Florida, with an estimated completion date of May 31, 2025. Fiscal 2018, 2019 and 2020 other procurement (Army); 2020 research, development, test, and evaluation (Army); and 2020 operations and maintenance (Army) funds in the amount of $1,615,202 were obligated at the time of the award. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-20-C-0024). DEFENSE INTELLIGENCE AGENCY Clear Resolution Consulting, Baltimore, Maryland (HHM402-20-D-0018); NextGen Federal Systems, Morgantown, West Virginia (HHM402-20-D-0019); S2 Technologies, Smithfield, North Carolina (HHM402-20-D-0020); LBO Technology LLC, Leesburg, Virginia (HHM402-20-D-0016); Lock4 LLC, Red Springs, North Carolina (HHM402-20-D-0017); Parra Consulting Group, Middletown, Maryland (HHM402-20-D-0014); and SHINE Systems, Charlottesville, Virginia (HHM402-20-D-0021), have been awarded an indefinite-delivery/indefinite-quantity contract with a ceiling of $99,500,000 for facility management, logistics, administrative, readiness, executive and security support services to support the National Media Exploitation Center. Task orders will be competed among all awardees. The contract has a base period of performance from May 29, 2020 to May 28, 2025, with an optional ordering period from May 28, 2025 to May 27, 2030. All task orders must be completed no later than one year after the end of the ordering period. Work will be performed in the National Capital Region; Charlottesville, Virginia; and Patrick Air Force Base, Florida. Fiscal 2020 operations and maintenance funds in the amount of $1,000 are being obligated on task order after award. This contract has been awarded through a HUBZone set-aside competitive acquisition and sixteen offers were received. The Virginia Contracting Activity, Washington, D.C., is the contracting activity. DEFENSE LOGISTICS AGENCY Metrex Research LLC, doing business as Orascoptic, Madison, Wisconsin, has been awarded a maximum $45,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for hospital equipment and accessories for the Defense Logistics Agency electronic catalog. This was a competitive acquisition with 115 responses received. This is a five-year contract with no option periods. Location of performance is Wisconsin, with a May 17, 2025, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-20-D-0040). CORRECTION: The contract announced on May 8, 2020, for S&L Aerospace Metals LLC,* Flushing, New York (SPRRA1-20-D-0043), for $24,386,400, was announced with an incorrect award date. The correct award date is May 15, 2020. MISSILE DEFENSE AGENCY Lockheed Martin Rotary and Mission Systems, Moorestown, New Jersey, is being awarded a $22,300,000 cost-plus-fixed-fee modification (P00365) under Aegis Combat Weapon System development contract HQ0276-10-C-0001, which covers multiple Aegis Weapon System baselines and platforms. This modification increases the total cumulative contract value by $22,300,000, from $3,211,352,549 to $3,233,652,549; $64,900,000 of which was obligated for Aegis Ashore Japan (under Contract Line Item Number 0135). Under this modification, the contractor will continue performing engineering design support services necessary for continuation of planning efforts and risk reduction efforts required to maintain initial operational capability schedule to support the Aegis Ashore Japan Foreign Military Sales main case. The work will be performed in Moorestown, New Jersey, with an expected completion date of July 31, 2020. Funds from the government of Japan in the amount of $22,300,000 are being obligated at the time of award. This contract modification is the result of a sole-source acquisition. The Missile Defense Agency, Dahlgren, Virginia, is the contracting activity. WASHINGTON HEADQUARTERS SERVICES Chenega Healthcare Services LLC, San Antonio, Texas, has been awarded an indefinite-delivery/indefinite-quantity contract with an overall ceiling of $10,000,000. This contract provides COVID-19 contact tracing for the Pentagon support services. Fiscal 2020 operations and maintenance funds in the amount of $508,000 are being obligated at the time of the award. The expected completion date is May 17, 2025. Washington Headquarters Services, Arlington, Virginia, is the contracting activity (HQ0034-20-D-0008). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2190758/source/GovDelivery/

By: Ashok Sharma, The Associated Press NEW DELHI — India announced Saturday that global companies can now invest up to 74 percent in the country's defense manufacturing units, up from 49 percent, without requiring any government approval. Finance Minister Nirmala Sitharaman expressed hope that the new policy will attract foreign companies with high-end technologies to set up their manufacturing bases in India in collaboration with Indian companies. Sitharaman's announcement came as part of reforms Prime Minister Narendra Modi's government is implementing to revive India's economy, which has been shattered by the coronavirus pandemic. She also told reporters that India will stop importing weapons that can be made in the country. “We will notify a list of weapons and platforms for ban on their imports and fix deadlines to do it,” she said, adding that this will improve self-reliance on defense manufacturing. India introduced up to 49 percent foreign direct investment in defense production in 2016 to attract modern technology in the country. That attracted more than 18.34 billion rupees (U.S. $244 million) until December last year, according to a government statement. India issues defense-industrial licenses for making tanks, military aircraft, spacecraft and their parts, UAVs, missiles for military purposes, and warships. India, a major buyer of military equipment, depended largely on the former Soviet Union during the Cold War. But it has been diversifying its purchases by opting for U.S. equipment as well. During U.S. President Donald Trump's visit to India in February, the two countries signed a deal for India to buy from the U.S. more than $3 billion in advanced military equipment, including helicopters. https://www.defensenews.com/global/asia-pacific/2020/05/18/india-ups-foreign-investment-but-will-stop-importing-weapons-that-can-be-made-locally

Le budget du ministère des Armées, premier budget d'investissement de l'État, a un « rôle majeur à jouer » pour soutenir l'industrie de défense française, dont de nombreuses entreprises sont affaiblies par la crise, a affirmé le 17 mai la ministre Florence Parly dans un entretien à Ouest-France. « Nous avons un rôle majeur à jouer pour répondre aux besoins de nos forces et pour soutenir l'ensemble de la base industrielle et technologique de défense, ses grands groupes et ses milliers de PME et PMI, et leur éviter d'être impactées par la crise du coronavirus », déclare-t-elle. Le secteur, réuni au sein du Conseil des industries de défense française (Cidef) juge ainsi « fondamental » un plan de relance de l'économie, dont il bénéficierait. Sans l'évoquer formellement, Florence Parly indique que le gouvernement y semble favorable. Le Premier ministre « a donné des éléments de réponse en disant que l'investissement de défense se construit dans le long terme, que le monde dans lequel nous vivons ne sera ni moins dangereux ni moins risqué, comme le montre la période actuelle », rappelle-t-elle. Le Figaro du 17 mai 2022 - AFP du 17 mai 2020 - Ouest-France du 17 mai 2020

La crise sanitaire liée au Covid-19 a eu des répercussions sur le bon déroulement de nombreux programmes d'armement. « À la date d'aujourd'hui, le premier bilan des opérations d'armement est le suivant : à fin avril, 80% des jalons présentent un décalage calendaire de l'ordre de 1 à 2 mois selon les opérations », a expliqué le délégué général pour l'armement Joël Barre lors d'une audition fin avril à l'Assemblée nationale. Fin avril, le niveau d'activité des industriels, qui remonte progressivement, était évalué à environ 75%. « L'industrie annonce un retour d'activité de l'ordre de 100% entre mai et fin juillet, selon les industriels et les domaines concernés », a observé Joël Barre. La Tribune du 18 mai 2020

La Direction générale de l'armement (DGA), qui réalise un diagnostic précis des difficultés de la filière défense, prépare « un plan d'actions de suivi rapproché pour déterminer ce que nous pouvons faire pour assurer la soutenabilité des 1 400 entreprises considérées comme critiques pour la BITD (Base industrielle et technologique de défense) », a expliqué le Délégué général pour l'armement (DGA) Joël Barre lors de son audition fin avril à l'Assemblée nationale. La hausse budgétaire de 1,7 milliard d'euros prévue par la loi de programmation militaire (LPM) pour 2021 « soutiendra l'activité économique et la BITD », a ainsi assuré Joël Barre. La Tribune du 18 mai 2020

In the context of the COVID-19 crisis and after, it is foreseen that several US Defence and Security acquisition programs will be launched or accelerated in order to stimulate the economy. Many these opportunities will be accessible to Québec defence and security companies. Aéro Montréal would like to solicit your interest for a US Defence and Security Market opportunity watch that would be performed in accordance to selection criteria specific to your organization. The results of the watch would be communicated privately to your organization through the SDQuebec B2B platform. A maximum of fifteen companies will be selected out of the group that has expressed their interest. Your participation to this three month program is at no cost. The program will be evaluated after the initial period of three months. If you are interested, please confirm your interest by sending an email at : Sylvain Lefrançois sylvain.lefrancois@aeromontreal.ca before 29 May 2020.

By: Robert DuPree For the past few months, the U.S. federal government has been, quite understandably, totally focused on addressing the enormous health care and economic impacts of the COVID-19 pandemic. These efforts will necessarily continue to be front and center in the weeks and even months ahead, no matter how rapidly the curve flattens or declines, as different sectors and regions reopen. But to move the country forward, Congress must prepare to do its regular business for the year, which largely means tackling appropriations bills. Congressional staff have reportedly been doing the prep work to get spending bills ready for whenever the House and Senate can safely convene to work on them (or to do much of this work remotely). The American people — including federal contractors large and small, and our employees — are relying on Congress to check its partisan impulses and figure out how to do two things at once in the coming months: Continue to combat the COVID-19 crisis, and develop fiscal 2021 funding bills for all federal departments and agencies to meet our nation's needs. Unfortunately, there are some who are already taking a simplistic view, saying Congress will be so busy dealing with the pandemic that it will have to just give up and pass a continuing resolution to fund the government beyond the election into next year or even for a full year. On the contrary, the pandemic is exactly why Congress should be doing its work and completing updated appropriations bills on time. First of all, in these extraordinary times, the country doesn't need appropriations bills which merely extend the decisions made on spending last December, when Congress finally completed action (over two months late) on FY20 appropriations bills. The COVID-19 pandemic was just a blip on the horizon at that time. For FY21, the country needs updated spending legislation that more accurately reflects the greatly changed world we now face. Moreover, departments and agencies also need the flexibility to enter into new contracts to meet new needs, which is generally prohibited unless expressly provided under a continuing resolution. Further, Congress and the administration must come to grips with the elephant in the room — the strict annual spending caps imposed by the Budget Control Act of 2011, as amended. To mix metaphors, this law is no longer just an elephant, it's an emperor who has no clothes. Congress has modified the BCA's statutory spending caps a number of times over the past decade (thus, the above caveat “as amended”). Now we're about to face the final year of the law's spending caps, and what do we find? The caps are a joke. The caps were meant to limit discretionary spending each year, but Congress has repeatedly found ways around them. This has usually been done in one of two ways. The first is by including some amount of normal baseline defense spending under the category of overseas contingency operations, or OCO, which is “wartime” funding; this occurs even when unrelated to America's overseas/wartime military efforts. OCO spending is exempt from the BCA caps, so funding part of the base Defense Department budget this way enables the law's defense-spending cap to be technically met while also understating the Pentagon's non-wartime expenditures. The second way is by designating certain spending as “emergency” expenditures. Yes, these are almost always for valid, unforeseen emergencies, but it is still spending that would otherwise exceed the discretionary caps. Only Congress can wave a wand and say: “No, it doesn't exceed the cap — it's for an emergency.” To be honest, the caps painted an unrealistic picture of efforts to control federal spending anyway. By only being applied to discretionary spending, exempting massive entitlement expenditures and interest on the debt, the caps presented a partial picture of true federal-spending restraint to begin with. And now the COVID-19 crisis has resulted in multiple legislative packages being enacted, which the nonpartisan Congressional Budget Office estimates could add over $2.7 trillion to the current year's deficit. But because they are loans or designated as “emergency” spending, they don't violate the caps. They just add to the deficit. In reality, true federal spending has soared far past the stable level of spending that the caps were purported to achieve when the BCA was first enacted. Yet, the caps are still in place for next year, which will impact the congressional appropriations process by either preventing the spending needed to address current needs, or leading to further contortionist efforts by legislators to circumvent the caps. So let's quit pretending. Congress and the administration should agree to repeal the final year of the caps as part of the next COVID-19 legislative package so appropriators can be upfront about the spending needed without having to hide so much of that spending behind the “emergency spending” loophole. Be transparent, and admit the country is, like during World War II, spending a whole lot more than anticipated to meet the crisis. And most of all, get the job done by acting in a bipartisan fashion to pass appropriations bills by Oct. 1, 2020, that accurately reflect our real needs and expenditures. Admittedly, that may not be easy to do in an election year, but the nation and the federal contracting community are depending on Congress to be able to manage the COVID-19 crisis response, while simultaneously conducting its regular business. Robert DuPree is manager of government affairs at Telos Corporation. He focuses on political developments in Congress and the executive branch, including the federal budget, appropriations process, national defense and cybersecurity. He previously served as legislative director for a senior member of the U.S. House of Representatives. https://www.defensenews.com/opinion/commentary/2020/05/13/a-delicate-balancing-act-the-us-government-must-juggle-a-pandemic-and-the-fy21-budget/