14 mai 2020 | International, Terrestre

Contractors Recovering From COVID Shutdowns: Bruce Jette

While the pandemic continues, Pentagon metrics show production on Army programs is returning to normal, the Army's acquisition chief told Breaking Defense.

By SYDNEY J. FREEDBERG JR.on May 14, 2020 at 4:01 AM

WASHINGTON: The number of defense contractors reopening after COVID-19 quarantines now exceeds the number of new shutdowns, the Army's senior acquisition official said in an interview. That is happening, Bruce Jette told me, because industry is learning and adapting. New health precautions, from disinfecting tools between shifts to social distancing on the factory floor, should contain further outbreaks of COVID-19 and keep Army programs on track, he said – even if there's a new upsurge in infections nationwide.

According to daily updates from Defense Contract Management Agency, Jette said, “the openings are outweighing the number of closings, and total number of closings is down significantly, so things are improving quite a bit.”

Of 10,509 facilities large and small that DCMA is tracking, 248 had closed at some point — but only 40 are still closed. The number of reopenings has exceeded the number of new closings since April 20.

But, I asked, what if there's another spike, whether from states relaxing shutdown orders or a change in weather come the fall? Because of the new precautions now in place, Jette told me, “I would say that in the long run, if we had some degree of a resurgence, I don't think it would be as marked as the first one.”

Learning To Cope

There was an initial wave of shutdowns in the first days of the pandemic, Jette said, because a single case of COVID-19 might require putting the entire workforce at a facility into quarantine, particularly at smaller companies. That wasn't a panicked reaction, but a reasonable precaution. Workers had been mingling freely in close quarters, most coronavirus carriers were asymptomatic, and virtually no reliable tests were available. A company facing a single case had no way of knowing who else might already be infected.

But that's no longer true, Jette went on. Private companies and government agencies alike have now broken up large groups of workers into smaller ones, creating “bubbles” in which any contagion can be contained.

“For example, in the past, one shift came in and started using the tools from the other shift,” Jette said, as one example. “Now, between shifts, a cleaning team comes in and disinfects all the tools.”

Wiping down shared equipment, surfaces, and spaces is just one part of a multi-layered defense against contagion. Workers on the same shift who once all came in and out together, chatting in close quarters and shaking hands, may now arrive and leave on staggered schedules so they can stay six feet apart at all times. Workflows have been changed and workstations physically moved, where possible, to permit social distancing on the factory floor. Employees who must work side-by-side wear masks and gloves.

Those precautions reduce the chance of someone catching the coronavirus in the first place – and just as important, they make it harder for one infected employee to spread the disease, especially to colleagues outside their “bubble.” So when somebody does get sick, you only need to quarantine their particular team, not shut down the whole factory.

“If somebody in the bubble comes down [with COVID],” he said, “ only that bubble ends up isolated.”

Even Pentagon offices like Jette's own are getting cleaned more frequently and more thoroughly, he told me, even when no one working in them has actually gotten sick. “[Even when] nobody has become infected in a particular office,” he told me, “we are having a cleaning team go through and do one office here, one office there, and just do a thorough wipe-down to make sure that there's nothing that got into that office undetected.”

These precautions aren't excessively onerous, disruptive, or costly, Jette said. They're just things nobody had thought about doing before – but now they might be useful even after the pandemic is under control.

“I don't see it being a significant burden on the system; it was just something we didn't see was an issue before,” he said, “[but] I may well help us have fewer flus and colds if we just continue the same practice.”

Dealing With Disruption

Industry may be adapting well, but a global pandemic is still extraordinarily disruptive. Like the rest of the Defense Department, the Army is closely tracking not only its prime contractors but the smaller subcontractors and sub-sub-contractors, which are much more fragile. To date, the Army has pumped $167.5 million into small businesses to help them ride out COVID disruptions.

“There have been some cost implications to the government,” Jette said, “but mostly with respect to the CARES Act,” which ensures workers at facilities closed by COVID are paid instead of let go.

The main way the Army has helped out companies is by making payments they already had coming, just ahead of schedule. For example, Jette said, the service has started writing checks to contractors every 15 days instead of the normal 30. It's also increasing progress payments, normally limited to 80 percent of total contract value (85 percent for small business) to 90 percent (95 for small business).

“Cash flow was one of those things we concerned ourselves with,” Jette said. “Congress gave us flexibilities there. There were things passed down from OMB in the White House that gave us some flexibility as well.”

To help figure out which subcontractors might be in trouble, the Army's prime contractors have opened their books and shared information with the service, far beyond anything they were contractually obligated to do, Jette said. Since the early days of the pandemic, even before shutdowns began, he's been getting a daily report on the health of subcontractors, which now routinely runs over 60 pages.

“The primes ... were all very cooperative in trying to give us visibility down to the lowest level supplier,” Jette said. “It's really been helpful for us, because it helps us get a better gauge on what we have to do if something goes awry.

In some cases when a subcontractor shuts down, the primes can find an alternative supplier. But despite the huge size of the defense industrial base, Jette said, there are single points of failure where only one company that's been formally qualified to build a certain part or perform a certain industrial process. It takes time to get a back-up supplier up to speed – sometimes longer than the 16.8 days that, on average, it takes a quarantined facility to reopen.

That has resulted in delays, Jette acknowledges, but, so far, Army programs are finding ways to make up the time elsewhere in their schedules and still deliver new weapons to the troops on time – what's called First Unit Equipped, or FUE.

“Delivery schedules on some products have slipped a little bit right...but at this point, none of them has assuredly slipped the FUE,” Jette told me. “As of right now, the vast majority of challenges that we've had with COVID, we've been able to accommodate within the current contracts with minor changes.”

But the factories aren't the only part of the system that has to function. “The most significant thing isn't production,” Jette said. “It's trying to get all the testing done to make sure that all the systems work.”

While some testing takes place in labs, what's most complex is operational testing, which puts a new technology in the hands of soldiers in the field to see how it works in for a real unit, interacting with all the rest of that unit's gear, conducting a realistic mission in realistic conditions. That requires bringing together not only the soldiers but technical specialists from the manufacturers, Army program offices, and Army testing organizations across the country.

“Those are not simple to just change or move around, [and] that's part of what we've struggled with,” Jette said. “In some cases, we have suppliers who provide a capability and it's ready to be tested and we just don't have the facilities or the units available yet for full testing.”

Officials need adequate test data before they can approve a program to start production – what's known as a Milestone C decision. But, Jette said, if you have to delay that formal approval, you can compensate by getting ready to jump-start manufacturing as soon as you have the go-ahead. The contractor can even start production ahead of Milestone C at its own risk, if it's confident that testing will not find any significant problems.

At some point, it comes down to what kind of risk you're willing to take. If you rev up your manufacturing base before testing is complete, but then testing discovers a problem you have to fix, you may have to make expensive, time-consuming changes to your design, to your production process, or even to items already built. But if you wait for all the testing to get done, no matter how long it takes, you may not get the kit to troops on schedule.

Unprecedented Stresses

It's a difficult and stressful time; Jette can't recall anything like it in his 30 years in the defense sector.

“At least based on my experience which goes back to the early '90s,” he told me, “you may have had strains on a particular vendor, [but] this is fundamentally a nationwide challenge that covers all of our programs.”

“I can't think of any time where we had such a longstanding challenge to keeping programs fully operational,” he said.

“Probably the closest thing,” he said, is when Congress can't pass defense funding bills on time and passes a stopgap Continuing Resolution. A CR essentially puts spending on autopilot at last year's levels with no ability to start new programs, ramp up existing ones, or cancel failing ones. Like the pandemic, a CR can impact every function of the Defense Department, or even the entire federal government, for weeks or months on end.

But funding problems don't threaten the health and safety of every worker the way the pandemic does. “In this case, we have to consider the financial underpinnings, but we also have to consider the impact to the people themselves.”

“Our most valuable resources are people,” Jette said. “If I don't have good people, I'm not getting good work done. I want to make sure those people want to work here, and a big piece of that is giving them a safe and healthy environment.”

https://breakingdefense.com/2020/05/contractors-recovering-from-covid-shutdowns-bruce-jette/

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12 novembre 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Contract Awards by US Department of Defense - November 12, 2020
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This modification exercises Option Period One to furnish supplies and services to enhance the Marine Corps' recruiting efforts. These services include a full range of services from the development of a tactical advertising strategy to the production of a wide-range of advertising formats (e.g., television, radio, print media, internet and direct marketing). Work will be performed in Atlanta, Georgia, with an expected completion date of December 2021. Fiscal 2021 operation and maintenance (Marine Corps) funds in the amount of $80,056,529 are obligated at time of award and will expire at the end of the current fiscal year. The Marine Corps Installations Command Contracting Office, Arlington, Virginia, is the contracting activity. Honeywell International Inc., Tempe, Arizona, is awarded a $72,944,708 for a long-term, firm-fixed-priced requirements contract for the repair of six weapon repairable assemblies in support of the V-22 aircraft. This contract includes a five-year base period with no options. Work will be performed in Torrance, California (44%); Tucson, Arizona (35%); San Diego, California (15%); and Tempe, Arizona (6%). Work is expected to be completed by November 2025. Annual working capital funds (Navy) will be obligated as individual task orders are issued and funds will not expire at the end of the current fiscal year. One firm was solicited for this non-competitive requirement under authority 10 U.S. Code 2304 (c)(1), with one offer received. The Naval Supply Systems Command, Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-21-D-XP01). Raytheon Co., El Segundo, California, is awarded a $53,440,000 modification (P00004) to previously awarded fixed-price-incentive-fee contract N00019-20-C-0001. This modification exercises an option to procure 16 AN/APG-79(V)4 radar systems. Additionally, this modification includes software, obsolescence management, engineering support and associated technical, financial and administrative data necessary for retrofit integration into the F/A-18C/D aircraft for the Marine Corps. Work will be performed in Forest, Mississippi (41.1%); El Segundo, California (32.6%); Andover, Massachusetts (18.3%); and Dallas, Texas (8%), and is expected to be completed in June 2022. Fiscal 2021 aircraft procurement (Navy) funds in the amount of $53,440,000 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. Vigor Marine LLC, Portland, Oregon, is awarded a $24,049,402 modification to previously awarded contract N00024-19-C-4447 to support USS Chosin (CG 65) extended dry-docking selected restricted availability. Work will be performed in Seattle, Washington, and is expected to be complete by October 2021. Fiscal 2021 operation and maintenance (Navy) funding in the amount of $24,049,402 will be obligated at the time of award and will expire at the end of the current fiscal year. The Puget Sound Naval Shipyard and Intermediate Maintenance Facility, Everett, Washington, is the contracting activity. AIR FORCE General Atomics Aeronautical Systems Inc., Poway, California, has been awarded an $81,866,402 cost-plus-fixed-fee and firm-fixed-price modification (P00014) to contract FA8620-18-C-2009 for the U.K. MQ-9B Protector program. This modification provides for the design, development, integration and component-level testing of additional capabilities being added to the baseline program. Work will be performed in Poway, California, and is expected to be completed Aug. 31, 2021. Total cumulative face value of the contract is not-to-exceed $174,889,865. Foreign Military Sales funds in the amount of $71,563,692 are being obligated at the time of award. The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. L-3 Communications Integrated Systems, Greenville, Texas, has been awarded a not-to-exceed $24,500,078 cost-plus-fixed-fee undefinitized contract action for procurement of Group B material and the Ground System Integration Lab. Work will be performed in Greenville, Texas, and is expected to be completed March 2024. This contract involves 100% Foreign Military Sales (FMS). This award is the result of a sole-source acquisition. FMS funds in the amount of $14,006,934 are being obligated at the time of award. The 645th Aeronautical Systems Group, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8620-19-F-4872 P00005). DEFENSE LOGISTICS AGENCY Baxter Healthcare Corp., Deerfield, Illinois, has been awarded a maximum $40,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for infusion pumps and accessories. This was a competitive acquisition with 105 offers received. This is a five-year contract with no option periods. Location of performance is Illinois, with a Nov. 11, 2025, ordering period end date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2021 through 2026 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D1-21-D-0001). Cummins Inc., Commercial and Government Entity, Memphis, Tennessee, has been awarded an estimated $24,869,181 fixed-price with economic-price-adjustment for multiple weapon systems program support. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a two-year base contract with four two-year option periods. Location of performance is Tennessee, with a Nov. 11, 2022, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2021 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7LX-21-D-0007). ARMY Tutor Perini Corp., Sylmar, California, was awarded a $25,998,795 firm-fixed-price contract for renovation of the Cadet Field House at the U.S. Air Force Academy. Bids were solicited via the internet with five received. Work will be performed in Colorado Springs, Colorado, with an estimated completion date of Nov. 24, 2022. Fiscal 2021 operation and maintenance (Air Force) funds in the amount of $25,998,795 were obligated at the time of the award. The U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-21-C-0004). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2413459/
4 novembre 2020 | International, Aérospatial

Defense aerospace primes are raking in money for classified programs
By: Valerie Insinna WASHINGTON — Two months after disclosing the existence of a next-generation fighter jet demonstrator, the U.S. Air Force is staying mum on which company may have built it. But one thing is for sure: Classified aviation programs are on the rise, and opportunities abound for the three major American defense aerospace primes — Lockheed Martin, Northrop Grumman and Boeing. During an Oct. 20 earnings call with investors, Lockheed Martin Chief Financial Officer Ken Possenriede revealed the company's Aeronautics division recently won a classified contract that would necessitate the construction of a new building in Palmdale, California, where the company's Skunk Works development arm tests and creates prototypes of secret aircraft. Sales for the division were up 8 percent in this year's third quarter compared to the same period in 2019, with about $130 million of the $502 million boost attributed to classified work. But Possenriede alluded to even more growth on the horizon. “For Aeronautics, we do anticipate seeing strong, double-digit growth at our Skunk Works, our classified advanced development programs. We continue to execute on those recent awards,” he said, adding that there were a “multitude of opportunities” still out there. Classified work also increased at Northrop Grumman's Aeronautics Systems unit, with “restricted activities” in the autonomous systems and manned aircraft portfolios helping bolster sales by 5 percent for the quarter and 4 percent year-to-date when compared to 2019, Chief Financial Officer Dave Keffer told investors Oct. 22. It's tempting to draw a line from these contract awards to the recent flight of a demonstrator for the Next Generation Air Dominance program — the Air Force's effort to field a suite of air superiority technologies that could include drones, high-tech weapons and what some have termed as a sixth-gen fighter, although service officials have said any warplane in the mix might not resemble a traditional fighter. Even though the Air Force announced in September that at least one NGAD demonstrator exists, it's unclear which companies are involved. Still, there are plenty of other longstanding and emerging Air Force requirements that could be the source of this classified work, said Richard Aboulafia, an aerospace analyst for the Teal Group. “It's pretty clear that there's more prototyping activity going on out there than was generally known. I had assumed that most of the work related to NGAD was happening at the systems level. It's clearly happening at the airframe level too," he said. "And then of course there are a lot of potential drone developments that are certainly worth watching,” from the MQ-9 Reaper replacement to strategic reconnaissance requirements, “which is fundamentally a very expensive activity.” The wild card in this situation is Boeing. Because of investors' focus on the commercial side of the business — including plans for the return of the Boeing 737 Max to flight, as well as the continued downward spiral of sales caused by the global pandemic and its chilling effect on air travel — executives did not speak about Boeing Defense, Space and Security's classified activities during the company's Oct. 28 earnings call. “Overall, the defense and space market remains significant and relatively stable, and we continue to see solid global demand for our key programs,” a Boeing spokesman said in response to questions about the company's classified business. “We project a $2.6 trillion market opportunity for defense and space during the next decade, which includes important classified work.” After years of lost competitions, there are signs that the company's combat aircraft production facilities in St. Louis, Missouri, as well as its advanced projects division, Phantom Works, are returning to health. Over the past two years, the company has banked major awards, including the Navy's MQ-25 tanker drone and the T-7A trainer jet, both of which were developed by Phantom Works. Boeing's work on the T-7 received praise from Air Force acquisition executive Will Roper for its use of digital engineering, which involves simulating the design, production and life cycle of a product in order to drive down costs. The company has also started selling the advanced F-15EX fighter jet to the Air Force, breathing a second life into that aircraft with this latest variant. But Aboulafia worried that pressure on Boeing's commercial business — combined with its strategy of leveraging the work of other aircraft makers on projects like the T-7, where Swedish manufacturer Saab had a heavy influence in shaping the design — may have led to a loss of resources and engineering talent at Phantom Works. “Either they're sitting it out now because their focus is elsewhere, or they don't have the capabilities and the commitment that the others do, or we're just not hearing about it now,” he said. Boeing is not the only company investing in digital engineering and advanced manufacturing processes. Northrop CEO Kathy Warden pointed to her company's use of digital engineering in the Ground Based Strategic Deterrent program, which the company won in September to build the Air Force's next-generation intercontinental ballistic missiles. “The work that we have done with the customer already, even under the tech maturation and risk reduction phase of the program, was done in a digital environment,” she said. “We delivered artifacts for review in a fully digital environment where they were actually looking at things in a model, not documents produced. This is the first time on a program of this size where that's been the case.” “Those investments that we're making for GBSD are being utilized across our entire portfolio,” she added. “So as we think about Next Generation Air Dominance and the programs that are part of that overall campaign ... they too will benefit from a full digital engineering thread as being required by our customers.” https://www.defensenews.com/industry/2020/11/03/defense-aerospace-primes-are-raking-in-money-for-classified-programs/
22 juillet 2020 | International, Aérospatial

Leonardo AW139’s capabilities further enhanced with new avionics software release and kit certification
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