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DoD has "so many hundreds of programs that we really couldn't do a fair evaluation of each individual activity," Mark Lewis, director of modernization in the Research and Engineering office, said today. By THERESA HITCHENSon May 19, 2020 at 5:05 PM WASHINGTON: DoD's Research and Engineering (R&E) office has launched a new initiative to develop best practices for the many programs to design and build artificial intelligence (AI) applications, says Mark Lewis, director of modernization. AI is one of DoD's top research and development priorities, charged to the Director of R&E Mike Griffin. The standards initiative is the brain child of newly appointed AI technical director Jill Chrisman, Lewis told the virtual “Critical Issues in C4I Conference 2020,” sponsored by AFCEA and George Mason University. “When Jill first joined us just a couple of weeks ago, I asked her to give me a site view of all the efforts underway in AI across the department, and kind of give me an evaluation of where we stood,” Lewis explained today. However, he said, because DoD has “so many hundreds of programs that we really couldn't do a fair evaluation of each individual activity.” So, instead R&E has decided “to establish a series of standards, if you will, principles and practices that we consider to be good practices for artificial intelligence engineering,” he said. “I liken it to systems engineering.” A key goal of the new effort is to break down stovepipes in order to allow the various DoD AI efforts to share databases and applications. In addition, Lewis said, R&E is aiming to “figure out what are the artificial intelligence applications that will have the biggest impact on the warfighter.” This could involve moving out prototypes rapidly so that warfighters have an opportunity to “play with them, experiment with them, and figure out what makes their job more effective,” he added. At the same time, it would enable warfighters to quickly reject things that are not useful or overly complicated. Lewis said that developing autonomous systems is another top priority. That portfolio of effort is handled by assistant director Wayne Nickols, and is focused on development autonomous systems that can team seamlessly with humans. “We want autonomy systems that will operate in ways that put human life at lower risk,” he explained. “If we can if we can have a robotic system as a target, instead of a human being as a target, that's that's our preferred approach.” In his wide-ranging discussion, Lewis also expounded on DoD's research goals for quantum science — a focus area that he said is somewhat less well developed than others on DoD's high priority list. “There is a lot of hype associated with quantum science,” he said bluntly. “People are talking about quantum computers that will, in a few years, replace our fastest supercomputers, quantum communication technology, quantum key encryption techniques. And frankly, a lot of it is promising — but it's also very very far term.” That said, Lewis noted that there are two near-term opportunities for DoD in the field: enabling back-up positioning, navigation and timing capability in case GPS satellites are degraded in anyway; and future “exquisite sensors for a variety of applications.” https://breakingdefense.com/2020/05/dod-creating-standards-for-service-ai-programs/

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

May 18, 2020 - Saab has signed a contract and received an order for the Airborne Early Warning and Control solution Saab 2000 Erieye AEW&C. The order value is 1.553 billion SEK. Deliveries will be made between 2020 and 2023. The industry's nature is such that due to circumstances concerning the product and customer, further information about the customer will not be announced. Saab 2000 Erieye AEW&C is a complete AEW&C system with multi-role and multi-mission capabilities for both military and civil needs. It is based on the Saab 2000 aircraft equipped with Saab's airborne radar Erieye and a range of other sensors. The solution gives the user detailed situational awareness and can be used for tasks including border surveillance and search-and-rescue operations. Saab will carry out the work in Gothenburg, Järfälla, Linköping, Luleå and Arboga, Sweden. For further information, please contact: Saab Press Centre, Ann Wolgers, Press Officer +46 (0)734 180 018, presscentre@saabgroup.com www.saabgroup.com www.saabgroup.com/YouTube Follow us on twitter: @saab Saab serves the global market with world-leading products, services and solutions within military defence and civil security. Saab has operations and employees on all continents around the world. Through innovative, collaborative and pragmatic thinking, Saab develops, adopts and improves new technology to meet customers' changing needs. The information is such that Saab AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on 18 May 2020 at 11.00 (CET). View source version on Saab: https://saabgroup.com/media/news-press/news/2020-05/saab-receives-airborne-surveillance-order/

By: Martin Banks   BRUSSELS – A report predicts that Brexit will be “more harmful and long-lasting” for the British army and U.K.'s defense sector than for the European Union. The exhaustive study by the Warsaw Institute, a leading European think tank, warns that the U.K.'s exit from the EU means existing arrangements and defense cooperation agreements “will need to be reassessed, completely changing the defense landscape of Europe.” It says, however, that an extension to the current transition period, set to end on Dec. 31, would “mitigate damage” caused by the split. Conversely for the EU side, it suggests that the British departure may have a “healing result,” as both France and Germany will be able to pursue “more comprehensive” defense policies for the remaining member countries. Such moves, it adds, was often blocked by the UK, “which believed that NATO would be sufficient as European peacekeeper.” Publication of the report by the Polish Institute is timely as the 1 July deadline set by both the EU and U.K. for deciding if there will be an extension to the talks is fast approaching. The document paints a largely grim picture for the post-Brexit defense sector, pointing out that companies from across Europe buy or sell parts to various British companies. A no-deal Brexit, which, given the lack of progress in the ongoing trade talks, most analysts currently say is by far the most likely outcome at the end of the year, “would mean price hikes and possible delays in European projects relying on British parts or know-how.” Companies likely to be impacted include industry giants like Airbus and products as “complex and important” for European security as the Eurofighter Typhoon. The independent institute, which specializes in geopolitics and international affairs, notes, “The expected crisis can be averted either by a free trade agreement or, should this option not be possible, a bilateral trade agreement between UK and several if not all EU27 states abolishing tariffs and border checks. “Should these measures not be in place, many projects run by European companies may be hit with delays or even cancellations.” The predicted consequences of Brexit for the British army and U.K.'s defense sector are more harmful and long-lasting than those expected to be felt by the EU. This, the non-profit Institute argues, is because Brexit “will strip the U.K. from valuable training opportunities and will take away some of its international power-projection abilities.” “The U.K. will no longer be able to affect the policies that are agreed upon as the part of the Common Security and Defence Policy," or CSDP. But the “biggest downside” of the divorce will be that fewer resources will be available to make up the future peacekeeping and advisory operations run by the EU worldwide. “There will also be less finances available for these operations coming from the CSDP as there will be less contribution paid towards it.” The third round of talks between the two sides concluded last Friday with little progress being made. The UK government has ruled out an extension to the transition period. David McAllister, Chairman of the Committee on Foreign Affairs in the European Parliament, said, “From the very beginning, it was to be expected that the negotiations would not be easy. But we started them from a position of certainty, goodwill, shared interests and purpose.” The German MEP, also chair of the UK Coordination Group in the Parliament, added, “In my opinion, there is still a strong, shared interest of both the EU and the U.K. to sign an ambitious and comprehensive new partnership governing their future relations.” https://www.defensenews.com/global/europe/2020/05/19/study-sees-british-defense-sector-hurting-after-brexit

NAVY Viasat Inc., Carlsbad, California, is awarded a $998,828,164 maximum potential value, indefinite-delivery/indefinite-quantity contract for the production, retrofits, development and sustainment of the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio Systems (JTRS) terminals. Currently, there are three variants of MIDS JTRS terminals: the Concurrent Multi-Netting-4, the Tactical Targeting Network Technology and the F-22 variant. Work will be performed in Carlsbad, California, and these terminals will continue to be procured, sustained and updated for future growth, including JTRS advanced networking waveforms such as: multifunction advanced data link, intra-flight data link and other advanced networking waveforms. The MIDS JTRS terminal is a line-of-sight radio system for collecting and transmitting broadband, jam-resistant, secure data and voice across a variety of air, sea and ground platforms. Work is expected to be complete by May 2025. Funds in the amount of $48,280,914 will be placed on contract and obligated on the first delivery order concurrent with contract award, which will meet the minimum order requirement. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $8,223,208; and other procurement (Navy) funds in the amount of $1,532,559 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 aircraft procurement (Air Force) funds in the amount of $12,135,592; other procurement (Air Force) funds in the amount of $1,645,504; and research development test and evaluation (Air Force) funds in the amount of $205,688 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 defense-wide procurement in the amount of $1,234,128; and defense National Guard and reserve equipment in the amount of $2,673,944 will be obligated at time of award and will not expire at the end of the current fiscal year. Non-appropriated funds for Foreign Military Sales (FMS) in the amount of $15,015,224; and foreign cooperative programs in the amount of $617,064 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2018 aircraft procurement (Air Force) in the amount of $3,702,384; and other procurement (Navy) in the amount of $1,295,619 will be obligated at time of award and will expire at the end of the current fiscal year. This contract combines purchases for the Navy, Air Force and MIDS Program Office, as well as purchases for NATO and all NATO nations under the FMS program. This contract was competitively procured, and two proposals were received. The Naval Information Warfare System Command, San Diego, California, is the contracting authority and awarded the contract on behalf of the MIDS Program Office (PMA/PMW-101) (N00039-20-D-0058). Data Link Solutions LLC, comprised of BAE, Wayne, New Jersey; and Collins Aerospace, Cedar Rapids, Iowa, is awarded a $998,828,164 maximum potential value, indefinite-delivery/indefinite-quantity (IDIQ) contract for the production, retrofits, development and sustainment of the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio Systems (JTRS) terminals. Work will be performed in Cedar Rapids, Iowa (50%); and Wayne, New Jersey (50%). Currently, there are three variants of MIDS JTRS terminals: the Concurrent Multi-Netting-4, the Tactical Targeting Network Technology and the F-22 variant. These terminals will continue to be procured, sustained and updated for future growth, including JTRS advanced networking waveforms such as: multifunction advanced data link, intra-flight data link and other advanced networking waveforms. The MIDS JTRS terminal is a line-of-sight radio system for collecting and transmitting broadband, jam-resistant, secure data and voice across a variety of air, sea and ground platforms. The ordering period for this IDIQ contract is through May 2025. Funds in the amount of $64,137,404 will be placed on contract and obligated on the first delivery order concurrent with contract award, which will meet the minimum order requirement. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $10,970,335; other procurement (Navy) funds in the amount of $1,802,447; and ship construction procurement (Navy) funds in the amount of $195,965 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 aircraft procurement (Air Force) funds in the amount of $16,461,060; other procurement (Air Force) funds in the amount of $1,959,650; and research development, test and evaluation (Air Force) funds in the amount of $1,175,790 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 defense-wide procurement in the amount of $1,567,720; and defense National Guard and reserve equipment in the amount of $3,331,405 will be obligated at time of award and will not expire at the end of the current fiscal year. Non-appropriated funding for Foreign Military Sales (FMS) in the amount of $20,598,117; and foreign cooperative programs in the amount of $979,825 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2018 aircraft procurement (Air Force) in the amount of $5,095,090 will be obligated at time of award and will expire at the end of the current fiscal year. This contract combines purchases for the Navy, Air Force and MIDS Program Office, as well as purchases for NATO and all NATO nations under the FMS program. This contract was competitively procured, and two proposals were received. The Naval Information Warfare System Command, San Diego, California, is the contracting authority and awarded the contract on behalf of the MIDS Program Office (PMA/PMW-101) (N00039-20-D-0057). Intercontinental Construction Contracting Inc.,* Passaic, New Jersey (N40080-20-D-0011); FBGC JV LLC,* Hampton, Virginia (N40080-20-D-0012); Pontiac Drywall Systems Inc.,* Pontiac, Michigan (N40080-20-D-0013); Maclean-Ocean JV LLC,* Bethesda, Maryland (N40080-20-D-0014); RAND Enterprises Inc.,* Newport News, Virginia (N40080-20-D-0015); and Aimcon Design Build LLC,* Harvey, Louisiana (N40080-20-D-0016), are awarded $99,000,000 for an indefinite-delivery/indefinite-quantity, multiple award design-build/design-bid build construction contract for construction projects located primarily within the Naval Facilities Engineering Command (NAVFAC) Washington area of responsibility (AOR). All work on this contract will be performed primarily within the NAVFAC Washington AOR to include District of Columbia (40%); Virginia (40%); and Maryland (20%). Intercontinental Construction Contracting Inc. is awarded initial task order at $169,821 for the construction of seven above-ground storage tanks and two pump houses at Chesapeake Beach Detachment, Maryland. The work to be performed provides repairs, new construction and alterations to shore facilities and utilities. Additionally, work may also include but are not limited to, engaging in installing and serving mechanical, electrical, plumbing, heating, air-conditioning, building's equipment and other specialized trades. Work for this task order is expected to be complete by June 2021. The term of the contract is not to exceed 24 months, with an expected completion date of May 2022. Fiscal 2020 Navy working capital funds (NWCF); and fiscal 2020 supervision, inspection and overhead contract funds in the amount of $194,821 are obligated on this award and will expire at the end of the current fiscal year. The maximum dollar value including the base period and one option year for all six contracts combined is $99,000,000. Future task orders will be primarily funded by military construction (Navy); operations and maintenance (Navy); and NWCF. This contract was competitively procured via the Beta Sam website, and 23 proposals were received. These six contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command Washington, Washington, D.C., is the contracting activity. Applied Systems Engineering Inc., Niceville, Florida, is awarded a $10,600,000 modification on an indefinite-delivery/indefinite-quantity delivery order N001781-70-D-2053 for additional quantities of Advanced Tactical Navigation units as well as various upgrades, repairs and associated support. Work will be performed in Niceville, Florida, and is expected to be complete by April 2022. This modification raises the contract ceiling to $22,259,073. This modification is being awarded on a sole-source basis in accordance with Federal Acquisition Regulation 6.302-2, Unusual and Compelling Urgency (see 10 U.S. Code 2304(c)(2)). No funds are being obligated at the time of award, and will be obligated on individual orders as they are issued. The Naval Surface Warfare Center, Dahlgren Division, Dahlgren, Virginia, is the contracting activity. W. F. Magann Corp., Portsmouth, Virginia, is awarded a $10,234,262 firm-fixed-price modification for replacement of the Dry Dock 4 north side duct bank at the Norfolk Naval Shipyard, Virginia. Work will be performed in Portsmouth, Virginia, and includes, but is not limited to, demolition of the existing terracotta duct banks and installation of structural, concrete encased duct banks for the electrical systems, shore power, industrial power, capstan power and telecommunications systems. Work is expected to be complete by July 2022. After award of this modification, the cumulative contract value will be $174,551,064. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $10,234,262 are obligated on this award and will expire at the end of the current fiscal year. The Naval Facilities Engineering Command Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-19-C-9014). AIR FORCE Ventech Inc., Largo, Maryland, has been awarded a $99,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for performance of the Base Level Software Support V contract. This contract provides for purchasing of commercial software, software maintenance and bundled maintenance, filing purchases and license information database operations and maintenance, report generation and general support to address software, documentation and licensing issues. Work will be performed at Eglin Air Force Base, Florida, and is expected to be completed May 30, 2030. The period of performance for this services contract is for a five year base period with one five year option. This award is the result of competitive acquisition and 18 offers were received. Fiscal 2020 research, development, test and evaluation funds in the amount of $106,723 will be obligated at the time of award. Air Force Testing Center, Eglin AFB, Florida, is the contracting activity (FA2486-20-D-0009). Survice Engineering Co. LLC, Belcamp, Maryland, has been awarded a not-to-exceed $89,489,901 indefinite-delivery/indefinite-quantity contract for the Defense Technical Information Center (DTIC). This contract provides for the acquisition, storage, retrieval, synthesis, analysis and dissemination of 22 technical focus areas and scientific technical information for the Department of Defense Information Analysis Center mission. Work will be performed at Fort Belvoir, Virginia, and is expected to be completed Dec. 31, 2026. This contract is the result of a competitive acquisition and two offers were received. Fiscal 2020 research, development, test and evaluation funds in the amount of $3,600 will be obligated at the time of award. The Air Force Installation Contracting Center, Offutt Air Force Base, Nebraska, is the contracting activity (FA8075-20-D-0001). Sea Box Inc., East Riverton, New Jersey, has been awarded a $77,454,898 requirements order for basic expeditionary airfield resources expandable bicon shelter hygiene systems for the Support Equipment and Vehicles division at Robins Air Force Base. The order provides for the production of 43 initial quantities and best estimated quantities (BEQ) of five each under the basic period, BEQ of 26 for Option Period One, BEQ of 44 each for Option Period Two, BEQ of 30 each for Option Period Three, and BEQ of 30 each for Option Period Four. Work will be performed in East Riverton, New Jersey, and is expected to be completed May 18, 2024. This award is the result of a sole-source acquisition. Fiscal 2019 other procurement funds in the amount of $15,422,303; and fiscal 2020 other procurement funds in the amount of $2,500,914 are being obligated at the time of award. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8534-20-F-0026). ManTech SRS Technologies Inc., Herndon, Virginia, has been awarded a $20,916,894 cost-plus-fixed-fee and firm-fixed-price modification (P00056) to contract FA8811-10-C-0002 for systems engineering and integration services. Work will be performed at Los Angeles Air Force Base, California; Vandenberg AFB, California; and Cape Canaveral Air Force Station, Florida. Work is expected to be completed Sept. 22, 2020. Fiscal 2020 procurement funds in the amount of $17,673,379; fiscal 2020 operations and maintenance funds in the amount of $1,503,797; and fiscal 2020 research development test and evaluation funds in the amount of $729,723 are being obligated at the time of award. Total cumulative face value of the contract modification and option is $20,916,894. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. ARMY Vigil America Inc., Deland, Florida, was awarded a $49,000,000 firm-fixed-price contract for the Electronic Automatic Activation Device. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of May 14, 2027. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911QY-20-D-0015). WASHINGTON HEADQUARTERS SERVICES UPDATE: The contract announced yesterday, May 18, 2020, to Chenega Healthcare Services LLC, San Antonio, Texas (HQ0034-20-D-0008), to provide COVID-19 contact tracing for Pentagon support services, was actually awarded today. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2192036/source/GovDelivery/

By: Andrew Chuter LONDON – Adopting a new hybrid procurement system could save Britain's Ministry of Defence billions of pounds and get cutting edge technology in the hands of troops faster, a top American satellite communications company argued to the parliamentary Defence Committee. Written evidence from Viasat's U.K. arm advocating a shake-up in British procurement processes was published by the committee May 13 as part of its inquiry into the procurement and prosperity aspects of the country's defense industrial policy. Top of the list of proposals submitted by the company is a hybrid approach to procurement that saves money and leads to experimentation to deliver missions faster, said Viasat UK Managing Director Steve Beeching in an interview with Defense News following publication of the evidence. “We need a hyrid process with a platform-centric approach for very long lead, complex structural equipment elements," said Beeching, adding that more agile,, adaptive procurement for technology is required to meet the mission threat. "At the end of the day buying outdated technology doesn't deliver the mission,” Beeching said. The hybrid idea is among a raft of potential procurement changes proposed by Viasat. The company also advocated for ‘test before you buy' solutions from industry to reduce MoD costs and risk; building trusted partnerships between government and the private sector to drive information advantage; sharing risk and design obligations, thereby alleviating the burden on existing program processes; and executing an outcomes-based assessment program. The proposals come as the company is considering a potentially significant investment in the U.K. From a U.K. base near Farnborough, southern England, Viasat has a growing presence in the defense and security sector providing UHF satellite communications, tactical data system, sovereign information assurance and other services. It is currently considering investing about £300 million, or $366 million, in the U.K. and doubling its workforce of some 80 people with additional network and cyber personnel. Viasat, which is headquartered in Carlsbad, California, said a change of direction on procurement in the upcoming integrated review of defense and security could bring big rewards for government, the military and the domestic defense industry. “The 2020 strategic defense and security review will, if carried out correctly, give the MoD an opportunity to save billions of pounds, end complex procurement procedures and ensure that U.K. armed forces have available the most up-to-date equipment,” Viasat said in its evidence. “This will help to meet the rapidly changing adversarial environment the U.K. is facing. The review must provide a process to deliver a stronger industrial base, with more UK jobs at higher skill levels, achieving greater foreign investment and opportunity for exports,” the company told the committee. “To improve, the MoD needs to simplify the complexity of its huge defense organization into elements that can deliver change for the benefit of the nation, troops and way of life. Behavioral challenges occur where the MoD manages risk and outcomes as the primary objective [to keep the nation safe], but to move forward requires risk-taking,” said the evidence. The MoD's performance has been heavily criticized over many years for late delivery and cost overruns; although often the fault lays with government or the military rather than procurement officials. Despite several efforts to reform procurement, most recently through the Levene and Gray reviews, the right remedy to the problem has been elusive, despite some performance gains. Now, the new integrated defense review, virtually paused for the next few months as a result of the COVID-19 crisis, is likely to have another go at getting it right. Beeching, said that the present procurement policy was failing to produce the required results. “Current procurement procedures have yielded program delays, overspending and higher risks to the MoD. We feel very strongly that a more agile, fused-hybrid approach is needed to procure the appropriate systems and services required to keep pace with technology advancement. By modernizing the procurement process, MoD can work toward better processes to keep the nation safer,” said Beeching. “Its about approach and behaviors. We are not advocating stripping everything apart,” he said. With the COVID-19 crisis grabbing most of the government's attention, a major overhaul of defense procurement may not be on the list of priorities. Beeching, though, said if you wait for the perfect time it will never exist. “The lessons we are learning through things like COVID-19, through other things that are happening in the world, make more imperative that an achievable plan like the one we are proposing moves forward. It will give us more options to get the required capabilities to our service men and women, the government and the cabinet office much quicker than we do today,” he said. https://www.defensenews.com/global/europe/2020/05/14/defense-firm-advocates-hybrid-procurement-system-to-save-billions-in-the-uk/

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

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

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