17 avril 2020 | International, Aérospatial
By THERESA HITCHENSon April 16, 2020 at 4:28 PM
WASHINGTON: The Air Force wants Congress to approve new powers allowing the service to fund space acquisition in ‘blocks' that would allow it more freedom to shift funds from one specific program to another, says service acquisition head Will Roper.
The idea, he told reporters today, is to give the Space Force acquisition authorities that mimic those used by fast-moving and highly capable organizations such as the Special Capabilities Office and the NRO. The mechanism: putting multiple programs into one budgetary program element (PE) number so priorities can be juggled or monies shifted to ailing programs to help them cope with cost or schedule overruns.
“One of the things that we are very passionate about for space acquisition is trying to consolidate the space portfolio into a few number of program elements,” Roper said, noting that when he headed the SCO “we funded almost all of our programs out of one program element. That's really important because it let me optimize the portfolio of programs, not just do individual programs,” he explained. “Well, the way that the Air Force and now Space Force put their budget submissions into Congress, it puts all of the programs into individual program elements, and that's like locking [each] program into a little financial prison.”
Although it is true that other organizations with acquisition powers — including SCO, NRO and the Missile Defense Agency — have such flexibility, it is unclear whether Congress will acquiesce to the same for the Space Force. The 2016 NDAA created a new “major force program” — MFP 12 — for DoD reporting on the national security space budget precisely to overcome: a) the lack of transparency in DoD budgeting for space programs, and b) the long-standing Air Force practice to shift space funds to air power programs that were suffering setbacks. However, an MFP does not allow the Air Force or other space services to move money around without congressional assent.
As late as the 2020 budget request, DoD admitted that it still had not sorted out how exactly to meet the MFP-12 requirement as it was still developing standard practices for determining what should be included or not.
Joshua Huminski, director of the National Security Space Program at the Center for the Study of the Presidency and Congress (CSPC), said wryly that the Air Force request is likely to “require very artful selling to Congress.” He explained in a phone conversation today that congressional leaders already are keeping the Air Force on a short leash regarding space acquisition.
Roper said the request for such new authorities will be included in the space acquisition report Air Force Secretary Barbara Barrett is required to send to Congress under language in the 2020 National Defense Authorization Act (NDAA). That report was due March 31 but has yet to be transmitted.
Roper said the report is finished but is being reviewed by Defense Secretary Mark Esper.
As I've reported, Barrett's report will punt on the question of whether the NDAA-required Space Force acquisition executive will be a fully separate office or will be organized in some fashion as a subunit of Roper's current shop. It's no secret that Roper has strenuously opposed a fully bifurcated space acquisition office.
Roper confirmed today that the pending report is concentrating on how the service hopes to use its current, and newly proposed, acquisition authorities to speed the often decades-long process of moving new space capabilities from design to procurement. He explained that the Air Force will wait until after Congress decides on its proposal for future space acquisition authorities before circling back to the organizational question — in effect, meaning that the service will not address the issue until after the 2021 NDAA is passed.
“And then once we determine what will be given to us or not, then for round two, we'll look at what's the right way to organize with these new authorities, and at that point we'll take on the question of whether there should be one or two service acquisition executives,” he elaborated.
The service has until October 2020 to establish the controversial new space acquisition post.
https://breakingdefense.com/2020/04/af-seeks-freedom-to-shift-between-space-programs
31 juillet 2023 | International, C4ISR, Sécurité
The new head of L3Harris' Aerojet Rocketdyne segment expressed relief that the uncertainty surrounding the company's future is resolved.
19 mai 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
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
9 novembre 2018 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
By: Joe Gould and Aaron Mehta WASHINGTON — The American defense industry is warning that defense cuts proposed by the Trump administration could undermine the Pentagon's efforts to modernize the military and address threats from Russia, China, Iran, North Korea and transnational terrorism. The Aerospace Industries Association, with the weight of the country's large and small defense firms behind it, issued a statement Thursday warning President Donald Trump and Congress “to provide steady and stable growth in defense spending in the fiscal year 2020 budget request and beyond” if they want to be able to meet those threats. The message comes as Democrats — expected to prioritize domestic spending and question record defense increases — won the House this week, and after White House budget director Mick Mulvaney ordered the Pentagon to prepare for a $700 billion national defense budget proposal for fiscal 2020. (For comparison's sake, the Pentagon is also continuing to prep the $733 billion budget it was expecting.) AIA argued in its statement that the last two years of budget growth have helped the Department of Defense and industry turn things around after years of war and budget instability, but not entirely. “As a result, military readiness is improving, and our industry is responding with more innovation and advanced capabilities,” the statement reads. “But the shortfalls of the last decade cannot be erased in the space of two years, and now the Administration has announced potential reductions in defense investment that could undermine the improvements that are just now materializing.” Last year, Defense Secretary Jim Mattis testified that the Pentagon needed 3 to 5 percent annual growth above inflation through 2023 to stay ahead of near-peer adversaries Russia and China. Congress responded with a $700 billion national defense budget for 2018 and $716 billion for 2019 — but also a $1 trillion tax cut that's grown the national deficit. National security adviser John Bolton said publicly, days before Tuesday's election, that the national debt is “an existential threat to society” and that Pentagon spending will have to “flatten out” in the near term. Deputy Secretary of Defense Patrick Shanahan had signaled in recent weeks that modernization programs like hypersonic weapons systems would take a hit if the budget falls. “It comes down to a judgment call, how fast do we modernize? And that's probably the biggest knob that we have to turn,” he said. Along similar lines, AIA argued that to achieve the Pentagon's National Defense Strategy — which "requires armed forces that are large and capable enough to meet multiple threats in multiple environments” — “we must continue to invest in the most effective technology and weapons we can provide.” “America's competitors and adversaries have made huge strides in their offensive and defensive capabilities, from submarines to cyberspace, and continue to develop advanced technology and sophisticated operational concepts,” the statement warns. Though it's unclear how sensitive the administration will be to this call, it has been vocal about its focus on the defense-industrial base in concert with Trump's emphasis on the American economy. A Trump-ordered study found roughly 300 gaps and vulnerabilities across America's network of defense suppliers; Pentagon officials are hopeful a third of those issues will be addressed in the next year. Whatever the administration does with its budget submission, it will be up to the new Congress to tweak it. Following the midterm elections, analysts have predictedlawmakers in next year's divided government will overcome gridlock to reach a budget deal that maintains flat defense spending. https://www.defensenews.com/industry/2018/11/08/us-defense-industry-pushes-back-on-white-houses-proposed-33b-budget-cut