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17 octobre 2019 | International, Autre défense

A compromise is needed on trans-Atlantic defense cooperation

By: Hans Binnendijk and Jim Townsend

The incoming European Commission president, Ursula von der Leyen, will need to work with Washington to defuse a quietly simmering trans-Atlantic defense cooperation issue that, if left unsettled, could do more long-term damage to the NATO alliance than U.S. President Donald Trump's divisive tweets.

The United States for years has sought to stimulate increased European defense spending while minimizing wasteful duplication caused by Europe's fragmented defense industry. Europe has finally begun to deliver: Defense spending is up significantly, and the European Union has created several programs to strengthen its defense industries. But in the process, the EU has created a trans-Atlantic problem. These advances in Europe could come at the expense of non-EU defense industries, especially in the U.S.

The European Defence Fund, or EDF, established in 2017, is designed to support the cooperative research and development efforts of European defense industries, especially small and mid-sized firms. Three eligible companies from at least three EU countries need to apply in a coordinated fashion to receive project research and development funding, which can be up to a 100 percent grant for the research phase. Plans call for spending about $15 billion between 2021 and 2027 to strengthen Europe's defense R&D and stimulate innovation. Model projects include the Eurodrone and ground-based precision strike weapons.

A second related EU program, Permanent Structured Cooperation, or PESCO, also inaugurated in 2017, focuses more on efforts to foster defense cooperation among subsets of European states. Initially envisioned in the 2009 Lisbon Treaty, PESCO is an effort to develop a more comprehensive European defense consistent with EU's common foreign and security policy needs. Thus far, 25 of 28 EU nations have signed up, with 34 modest cooperative projects agreed to by the European Council.

The EU estimates that the inefficiency caused by the lack of adequate defense cooperation costs its members between $25 billion and $100 billion annually. These new EU programs, designed to pool and share scarce defense resources, are intended to help address that problem. But the exclusivity of these approaches favor the defense industries of EU members, and the hostile Trump administration rhetoric toward the EU is only supercharging this controversy.

President Trump's negative attitude toward NATO and European leaders has undercut European confidence in American trans-Atlantic leadership and strengthened a call in some European capitals for European “strategic autonomy.” Part of this autonomy is developing a more capable and independent European military supported by a stronger European defense industry. A stronger European military capability is a goal shared on both sides of the Atlantic, but not at the expense of defense cooperation. While European leaders understand that they are probably decades away from real, strategic autonomy and military independence, they are shaping the EDF and PESCO approaches to protect European defense industry by being fairly exclusive of U.S. or other non-EU defense industries.

This has U.S. defense officials worried. A May 2020 letter to the EU from two senior U.S. officials stated their “deep concern” about the programs' regulations. While current EDF and PESCO programs are small, U.S. officials are worried they will set precedents and will be a model for more ambitious European defense cooperation in the future. They fear not only that U.S. industry will be cut out, but that two separate defense industry tracks will be established that will undercut NATO interoperability and promote further duplication. Some U.S. officials have threatened U.S. retaliation unless changes are made.

EU officials respond that these criticisms are excessive. They note that some American defense firms established in European countries will be eligible, that there is nothing comparable to the “Buy American Act” in Europe, that plenty of trans-Atlantic cooperative projects can take place outside of these two EU programs, that the PESCO projects will be guided by both EU and NATO requirements, and that over 80 percent of European international defense contracts go to U.S. firms anyway. They also note that a deterrent to U.S.-EU defense cooperation is that U.S. arms transfer control regulations create potential American restrictions on the sale to third countries of any U.S.-EU cooperative weapons systems that contain U.S. technology.

NATO Secretary General Jens Stoltenberg, who seems caught in the middle, has supported both EDF and PESCO, so long as the results fill NATO capability gaps and do not lead to further duplication.

Flexibility will be needed on both sides of the Atlantic to defuse this issue before it becomes too difficult to manage. Some opportunities for third-country participation will be needed.

Possible approaches to level the playing field include focusing on modifying PESCO, which is still under development in the EU. One suggestion is to create a “white list” of NATO nations not in the EU (such as the U.S., Canada, Norway, post-Brexit United Kingdom and Turkey) that might be invited to participate in selected PESCO projects on a case-by-case basis. This would at least set a precedent that PESCO does not completely exclude third countries. And it would strengthen EU-NATO defense links.

Additionally, formal procedures might be established for closer cooperation between the PESCO project selection process and NATO's defense planning process. This will help avoid duplication and identify at NATO those areas where NATO nations outside the EU could cooperate on PESCO projects,

The U.S. might also consider amending its arms export control legislation to waive the third-country transfer review requirement for the export of U.S.-PESCO joint projects if the sale would be made to a country to which the U.S. would have made a similar sale.

EU internal negotiations on EDF are finished, and changes will be hard to make. Plus, EDF provides R&D funding grants that use European financial resources. While some $118 million in U.S. Defense Advanced Research Projects Agency funds go to European firms, that is about 3 percent of DARPA's budget. So the U.S. might ask for some modest reciprocity from the EDF. But more constructively, DARPA and the EDF might co-fund R&D for joint U.S.-EU projects.

The United States has much to gain from a strong European defense industry. Europe has much to gain from cooperation with the U.S. defense industry. All NATO allies need to stimulate defense innovation to compete effectively with Russia and China. Both sides of the Atlantic have much to lose if this issue further disrupts NATO's already shaky political equilibrium. Hopefully von der Leyen's experience as a former German defense minister will help her to understand the urgency and to find a solution to this problem.

Hans Binnendijk is a distinguished fellow at the Atlantic Council and formerly served as the senior director for defense policy on the U.S. National Security Council. Jim Townsend is a senior fellow at the Center for a New American Security and formerly served as deputy assistant secretary of defense for European and NATO policy.

https://www.defensenews.com/opinion/commentary/2019/10/16/a-compromise-is-needed-on-trans-atlantic-defense-cooperation/

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  • Contract Awards by US Department of Defense - June 22, 2020

    23 juin 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contract Awards by US Department of Defense - June 22, 2020

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The contract modification also provides additional United Kingdom (U.K.) Strategic Weapon Support System kit manufacturing and effort to support expansion of the domestic missile tube industrial base. Specific effort includes design completion associated with the SSBN 827 technical variance documentation; non-recurring design effort for scope changes between the SSBN 826 and SSBN 827; design for affordability; lead ship component development lead yard support; follow ship lead yard support; and implementation of enhanced cyber security measures. Further, the action includes U.K. Strategic Weapon Support System kit manufacturing; expansion of the domestic missile tube industrial base; and submarine industrial base supplier development efforts. The submarine industrial base development and expansion efforts improve sub-tier vendor stability and gains economic efficiencies based on production economies for major components. The nuclear shipbuilding industrial base continues to ramp up production capability to support the increased demand associated with the Navy's Force Structure Assessment. Improved capacity at the sub-tier vendors reduces risk across nuclear shipbuilding programs. The contract modification includes a fully priced option for the construction of SSBN 826 and SSBN 827, associated design and engineering support. For SSBN 827, the modification covers advance procurement, advance construction and subsequent fiscal 2024 construction of SSBN 827. This option is required to support October 2020 construction start of the SSBN 826. If the option is exercised, the cumulative value of this contract will increase to $9,473,511,245. Work is expected to be complete by December 2031. The industrial base development work is for the furtherance of the fiscal 2020 National Defense Authorization Act (Public Law 116-92) and the Consolidated Appropriations Act 2020 (Public Law 116-93), which authorized and appropriated additional funds for submarine industrial base development and expansion to ensure second and third-tier contractors are able to meet increased production requirements. This is a joint U.S. and U.K. program; U.S. fiscal 2020 national sea-based deterrence funds in the amount of $31,903,052 will be obligated at the time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. General Atomics Aeronautical Systems Inc., Poway, California, is awarded a $26,866,441 firm-fixed-price contract that procures two MQ-9A Reaper unmanned air systems (UAS); one dual control mobile ground control station; one modular data center; and one mobile ground control station for Group 5 UAS intelligence, surveillance and reconnaissance services/persistent strike efforts. Work will be performed in Yuma, Arizona (40%); and various locations outside the continental U.S. (60%), and is expected to be complete by December 2020. Fiscal 2020 aircraft procurement (Navy) funds for $26,866,441 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to 10 U.S. Code 2304(c)(1). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-20-C-0031). (Awarded June 19, 2020) Alabama Shipyard LLC, Mobile, Alabama, is awarded a $23,752,381, firm-fixed-price contract for a 96-calendar day shipyard availability for the regular overhaul and dry docking of the USSN Ship Supply (T-AOE 6). Work will be performed in Mobile, Alabama, and is expected to be complete by November 2020. This contract includes one base period and 10 options which, if exercised, would bring the cumulative value of this contract to $26,361,776. Working capital funds (Navy) in the amount of $23,752,381 are obligated for fiscal 2020 and 2021, and will not expire at the end of the fiscal year. This contract was competitively procured with proposals solicited via the Government Point of Entry website, and one offer was received. The U.S. Navy's Military Sealift Command, Norfolk, Virginia, is the contracting activity (N32205). Pacific Maritime Industries,* San Diego, California (N00244-20-D-0005); Marine & Restaurant Fabricators,* San Diego, California (N00244-20-D-0006); and JPL Habitability,* National City, California (N00244-20-D-0007), are awarded an estimated $23,192,490 for multiple award, firm-fixed-price, indefinite-delivery/indefinite-quantity contracts to provide shipboard furniture supplies to renovate spaces onboard Navy ships. Work will be performed at all three contractor locations San Diego, California; and National City, California (collectively 70% as breakdown cannot be determined at this time); and Naval Base San Diego, San Diego, California (30%). Incidental services involve preparation of spaces and installation. Related tasks may include, but are not limited to, overheads, decks, bulkheads, furniture, rearrangements, new arrangements, fabrication of shipboard furniture and food service items, installation and removals, etc. The contract will include a one-year base period and two one-year option periods and the total value of this contract will have a ceiling price of $23,192,490, if exercised. The ordering period of the contract is expected to be complete by June 2021; if all options are exercised, the ordering period will be complete by June 2023. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $52,500 will be obligated ($17,500 on each of the three contracts to fund the contracts' minimum amounts) and funds will expire at the end of the current fiscal year. Delivery orders will be subsequently funded with appropriate fiscal year appropriations at the time of their issuance. This contract was competitively procured with the solicitation posted on beta.sam.gov as a total small business set-aside requirement with three offers received. The Naval Supply Systems Command Fleet Logistics Center San Diego, San Diego, California, is the contracting activity. The Boeing Co., St. Louis, Missouri, is awarded a $12,522,521 firm-fixed-price, cost-plus-fixed-fee order (N61340-20-F-0096) against previously issued basic ordering agreement N00019-16-G-0001. This order procures non-recurring engineering in support of establishing a functional configuration baseline in support of the production and delivery of Automatic Dependent Surveillance-Broadcast Out (ADS-B Out) A-kits and B-kits for the T-45 Training System. Work will be performed in St. Louis, Missouri (97%); Mesa, Arizona (1%); and various locations within the continental U.S. (2%). This order provides for the procurement of B-kits, to include air data computers and A-kits, which consist of associated wiring, splitters and filters and spares. This order also provides kit integration, follow-on analysis and engineering in support of issues that may arise during kit production and installation. Work is expected to be complete by January 2023. Fiscal 2018 aircraft procurement (Navy) funds in the amount of $7,109,441; fiscal 2019 aircraft procurement (Navy) funds in the amount of $4,516,503; and fiscal 2020 aircraft procurement (Navy) funds in the amount of $1,387,476 will be obligated at time of award; $7,109,441 will expire at the end of the current fiscal year. The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity. (Awarded June 19, 2020) FGS LLC, LaPlata, Maryland, is awarded a $9,760,698 firm-fixed-price, indefinite-delivery/indefinite-quantity contract. This contract procures network video teleconference equipment for the integrated command control and intelligence divisions integration of specialized network video teleconference systems in support of the command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance missions of the Joint Staff and combatant commanders, Department of Defense agencies and services, and Department of Homeland Security operational and support components. Work will be performed in LaPlata, Maryland, and is expected to be complete by June 2022. No funds will be obligated at the time of award, but will be obligated on individual orders as they are issued. This contract was competitively procured via an electronic request for proposal and two offers were received. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-20-D-0029). Innovative Defense Technologies LLC,* Arlington, Virginia, is awarded a $9,738,679 cost-plus-fixed-fee order (N68335-20-F-0349) against previously issued basic ordering agreement N68335-19-G-0036. This order provides for continued research and development efforts under Small Business Innovation Research topic N171-012, titled “Transition of Mission Planning Software to a Next Generation Component Based, Open Architecture using Advanced Refactoring Technology;” topic N07-137, titled “Artifact Assessment Tool Suite Infrastructure;” and topic N171-049, titled “Cyber Resiliency via Virtualization for Combat System.” Work will be performed in Huntsville, Alabama (58%); Mt. Laurel, New Jersey (20%); Arlington, Virginia (20%); and Fall River, Massachusetts (2%). This order provides further research and development of the Next-Generation Open Architecture (NGOA) Mission Planning System. The NGOA Mission Planning System includes a combat management system architecture that enables rapid software changes and fleet fielding, and an artificial intelligence/machine learning based dynamic mission planning capability that spans fleet-level and individual platform-level planning. Work is expected to be complete by June 2021. Fiscal 2019 research, development, test and evaluation (Navy) funds for $9,403,719 will be obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity. The Boeing Co., Seattle, Washington, is awarded a $9,000,000 modification (P00004) to firm-fixed-price order N00019-19-F-2963 against previously issued basic ordering agreement N00019-16-G-0001. This modification procures research and development support for airworthiness assessment activities associated with wing stores and configurations to be analyzed with the Wideband Satellite Communication radome for P-8A airworthiness certification and flight tests for the Navy and government of Australia. Work will be performed in Seattle, Washington (85%); and Patuxent River, Maryland (15%), and is expected to be complete by September 2021. Fiscal 2020 research, development, test, and evaluation (Navy) funds for $500,000; and foreign cooperative project funds for $3,000,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. 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