30 mars 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

COVID-19 Stimulus Includes Aerospace And Defense Industry Assistance

Jen DiMascio

President Donald Trump signed a $2.2 trillion stimulus bill into law March 27, aimed at shielding the U.S. economy from damage done by COVID-19-related closures, and that will also provide assistance to the aerospace and defense industry. In addition to giving businesses numerous incentives to retain employees, the act offers $17 billion in loans and loan guarantees to national security contractors such as Boeing, which had appealed to Congress for $60 billion in relief for itself and its suppliers.

The Coronavirus Aid, Relief and Economic Security Act does attach strings to the loans, restricting companies that accept the money from share buybacks, making increases to executive compensation and instituting layoffs.

In a statement issued March 26, Boeing said its CEO and board chairman are giving up their pay, and that the company is extending its dividend and will pause share repurchasing “until further notice.”

The law also provides $10.5 billion in new defense spending – primarily for personnel and operations – along with $2.5 billion aimed at maintaining the industrial base.

The act “confirms that there is no risk that fiscal 2020 and prior appropriations would be raided to pay for pandemic response costs,” said Byron Callan of Capital Alpha Partners in a note to investors. But he cautioned that analysts and planners have to factor the changes made by the new law when looking toward budgets for fiscal 2021 and beyond.

Another stimulus package is likely to follow in April or May, which may include additional funding for defense, Callan added.

Industry groups cheered passage of the act. “We encourage federal government officials and lawmakers to continue to support the aerospace and defense industry through the duration of the pandemic and to ensure sector stability during the economic recovery phase,” said the American Institute of Aeronautics and Astronautics. “The aerospace and defense contribution to the economy on the other side of the COVID-19 crisis will be crucial for restarting and building the economic engine to its pre-crisis momentum.”

The legislation offers “tools and incentives” that will provide support to many small businesses and the supply chain, said Eric Fanning, president and CEO of the Aerospace Industries Association. And David Berteau, president of the Professional Services Council, which represents federal government contractors, is looking to the future, saying that as the impact of the pandemic continues, the council will focus on keeping the government working, keeping contractors working and ensuring that contractors and their employees are paid.

Lockheed Martin President and CEO Marillyn Hewson made a related announcement about the company's plan to help with COVID-19 relief, saying it will advance $50 million to small- and medium-sized suppliers, donate $10 million to non-profit COVID-19 relief organizations and set aside a $6.5 million relief fund for its own employees.

The company will also offer engineering and technical assistance to government officials, and donate corporate aircraft and vehicles for logistical support, facilities for medical supply storage, distribution and COVID-19 testing.

“Finally, during this time of economic uncertainty, we will continue our planned recruiting and hiring,” Hewson said. “Given the requirement for social distancing, Lockheed Martin will deploy virtual technology and other techniques to sustain our hiring activity during this crisis period.”

https://aviationweek.com/aerospace/covid-19-stimulus-includes-aerospace-defense-industry-assistance

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24 juillet 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité, Autre défense

Contract Awards by US Department of Defense - July 23, 2019
DEFENSE LOGISTICS AGENCY Innovation Associates Inc., Johnson City, New York, has been awarded a maximum $450,000,000 firm‐fixed‐price, indefinite‐delivery/indefinite‐quantity contract for automated pharmaceutical equipment, accessories, maintenance and training under the Patient Monitoring and Capital Equipment Program. This is a five-year base contract with one five‐year option period. This was a competitive acquisition with 36 responses received. Location of performance is New York, with a July 22, 2024, performance completion date. Using customers are Army, Navy, Air Force, Marines, and federal civilian agencies. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D1‐19‐D‐0017). Sikorsky Aircraft Corp., Stratford, Connecticut, has been awarded a maximum $9,804,501 firm-fixed-price delivery order (SPRPA1-19-F-C15B) against basic ordering agreement SPRPA1-17-G-C101, for H-53 hydraulic fluid tanks. 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 one-year contract with no option periods. Location of performance is Connecticut, with a Sept. 30, 2020, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2019 Navy working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. ARMY ASNA, Santa Ana, California (W911QY-19-D-0045); and Mills Manufacturing Corp.,* Ashville, North Carolina (W911QY-19-D-0046), will compete for each order of the $249,000,000 firm-fixed-price contract for the purchase T-11 Personnel Parachute System. Bids were solicited via the internet with two received. Work locations and funding will be determined with each order, with an estimated completion date of July 22, 2019. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. North Carolina Division of Services for the Blind, Raleigh, North Carolina, was awarded a $42,289,265 firm-fixed-price contract for full food services to be provided at Fort Bragg, North Carolina. Bids were solicited via the internet with five received. Work locations and funding will be determined with each order, with an estimated completion date of July 31, 2024. U.S. Army Mission and Installation Contracting Command, Fort Sam Houston, Texas, is the contracting activity (W9124J-19-D-0014). NAVY GCR-MDI LLC,* Pinehurst, North Carolina, is awarded an $8,014,356 indefinite-delivery/indefinite-quantity contract for base operations support services at Naval Submarine Base, Kings Bay, and outlying areas. The work to be performed provides for base operations support services to include custodial, pest control, integrated solid waste management, grounds maintenance and landscaping, pavement clearance, and other related services. The maximum dollar value including the base period and four option years is $40,320,917. Work will be performed in Kings Bay, Georgia (99%); and outlying areas (1%), and is expected to be completed by September 2020. If all options are exercised, work will continue through September 2024. No funds will be obligated at time of award. Fiscal 2020 operations and maintenance (Navy); fiscal 2020 Defense Health Program; and fiscal 2020 family housing operations and maintenance (Navy) contract funds in the amount of $7,527,488 for recurring work will be obligated on individual task orders issued during the base period. This contract was competitively procured via the Navy Electronic Commerce Online website, with three proposals received. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity (N69450-19-D-1725). *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1914030//
15 juin 2020 | International, Terrestre

From laundry to cleaning, military willing to pay for creative solutions to pandemic problems
'We know that there is some innovation out there that can help us do those things better and sometimes faster' David Burke · CBC News · Posted: Jun 14, 2020 6:00 AM AT | Last Updated: June 14 The Department of National Defence is reaching out to Canadians for innovative solutions to problems it's facing due to COVID-19. The department is willing to pay $15 million for that assistance. The effort is being funded through DND's Innovation for Defence Excellence and Security program, which pays for research by outside organizations, typically businesses and universities. In this case, DND has three specific goals. The military wants to be able to rapidly sanitize workplaces and vehicles containing sensitive equipment like computers. It wants to be able to quickly clean uniforms and COVID-19 protective gear so it can be reused. It's also looking for ways to gather data to support the early detection and monitoring of contagious disease outbreaks. "We're reaching out to Canadian innovators because we know that there is some creativity out there, we know that there is some innovation out there that can help us do those things better and sometimes faster," said Eric Fournier, director general of innovation for DND. He said DND is working with the Centre for Security Science Program, the National Research Council of Canada, the Public Health Agency of Canada and Health Canada to hunt for solutions that will benefit the whole country. If a solution to any of the problems is found, it will be passed along to federal, provincial and municipal agencies. "Although the program doing this is a national defence program," said Fournier, "we are doing this for public safety across Canada. So it's for the first responders, it's also for national defence, it's for everybody and those solutions will be made available to all those government entities." Rapid, thorough cleaning is DND's goal. Fournier said it can take a lot of time to sanitize by hand. During a crisis, that time can be in short supply, he said. He said if a military aircraft is used to transport a COVID-19 patient, the entire vehicle, along with the uniforms and the personal protective equipment worn by the crew, would have to be cleaned. "We want to make sure that the people are ready to respond, again and again and again and again," said Fournier. "In a pandemic like this, we see that people have to work constantly." While dropping uniforms and flight suits into the washing machine might be an option, the military wants something faster. "So we want to make sure you can do it quickly," Fournier said. "In some cases just putting it in the laundry might work, but we might not have the time to do it that way. We might need something to clean it up faster for reuse in a few hours, for example." It's the same thing with cleaning vehicles by hand. It works, but getting it done fast is hard to do. Finding a way to sanitize aircraft, ambulances, offices and other spaces without damaging computers or other electronics is essential, Fournier said. He said it's also important to find ways to collect data on how the virus is moving through the population and to locate hot spots. DND will choose several winners in each of the three categories. The winners will be given up to $200,000 and up to six months to deliver on their solution. If the solution works, DND could provide them with more funding for fine-tuning or to adapt it for more widespread use. Anyone looking to apply for the program can go to the Innovation for Defence Excellence and Security website. There have only been a handful of applications, but Fournier said that number usually jumps up in the final days before the deadline. Applications for the program are due June 23. https://www.cbc.ca/news/canada/nova-scotia/military-dnd-covid-19-research-solutions-1.5607535
27 avril 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Défense : les industriels veulent une relance
Tous alignés pour mener la charge. Les présidents des organisations patronales de l'aéronautique, du naval militaire et de l'armement terrestre plaident d'une seule voix afin que l'industrie de défense fasse partie des plans de relance en France, mais aussi en Europe. « C'est absolument fondamental », ont-ils affirmé, lors d'une audition devant la commission de la défense de l'Assemblée nationale. L'objectif est de préserver la Base industrielle et technologique de défense (BITD) avec ses dizaines de milliers d'emplois hautement qualifiés, répartis sur tout le territoire et le long du littoral. À elles seules, les 400 entreprises aéronautiques membres du Groupement des industries françaises aéronautique et spatiale (Gifas) emploient 200 000 personnes. La filière navale fait travailler 40 000 personnes et les acteurs du terrestre, 20 000. Sans oublier les salariés des milliers de PME et TPE, dont beaucoup de pépites technologiques. Il s'agit aussi d'assurer aux armées, sursollicitées à l'intérieur et à l'extérieur des frontières nationales, le meilleur niveau d'équipements. Cela, en restant compétitifs face à la concurrence internationale et en pérennisant l'indépendance stratégique militaire du pays. Face à la crise du Covid-19 qui affecte les industriels de l'armement, « nous proposons un plan de relance pour soutenir la défense, sur le modèle de celui mis en place après la crise financière de 2008 », déclare Stéphane Meyer, président du Gicat (armement terrestre) et PDG du constructeur de blindés Nexter. Le volet défense du plan de relance de 2008 représentait 2,4 milliards d'euros sur un total de 34 milliards. Compte tenu de la profondeur inédite de la crise économique attendue, il faut aller plus loin. « Il est nécessaire d'augmenter les crédits afin d'amplifier la relance de l'industrie de défense, ce qui passe par la hausse de son budget dans la loi de finance 2021 et une révision de la loi de programmation militaire 2019-2025 avec prise en compte des montants absolus et pas du pourcentage du PIB, qui s'est contracté. Cela en affermissant des commandes qui sont encore optionnelles », précise-t-il. « La commande publique est le meilleur outil pour relancer l'économie », insiste Hervé Guillou, président du Groupement des industries navales (Gican). « Avant de parler de relocalisations, rappelons que l'industrie de défense est déjà localisée en France, et qu'un euro dans le budget français va directement dans l'emploi en France », relève Éric Trappier, président du Gifas et PDG de Dassault Aviation *, constructeur de l'avion de combat Rafale. À court terme, les entreprises qui tournent avec 20 % à 30 % en moyenne des effectifs ont pour « priorité absolue » la maintenance des matériels, la dissuasion et la défense aérienne. Les grands industriels ont aussi, en liaison avec le ministère des Armées, organisé la solidarité interfilière, afin de repérer les PME les plus en difficultés, dont la défaillance « peut affecter toute l'industrie ». L'autre combat se déroule sur le front européen. Les États-Unis ont placé l'aéronautique et la défense au premier rang des industries stratégiques dans leur plan de relance. « Est-ce que l'Europe a un plan pour ces industries stratégiques ? Nous discutons avec Thierry Breton (commissaire au Marché intérieur, notamment en charge de la défense, NDLR) afin que le budget de 13 milliards destiné au fonds européen de défense ne soit pas réduit dans le prochain budget de la Commission », souligne Éric Trappier. Le président du Gifas appelle aussi à la reprise et à la réussite des coopérations européennes et à l'instauration - enfin - d'une préférence européenne en matière d'achat de matériels militaires. « Ce n'est pas le moment de baisser la garde en Europe », martèle Hervé Guillou. « Il faut espérer que la situation fera réfléchir la Direction de la concurrence sur la consolidation européenne, qui est un moyen de créer des champions capables de se défendre contre leurs concurrents étrangers et de se protéger des OPA hostiles », conclut le président du Gican. Véronique GUILLERMARD Le Figaro https://www.asafrance.fr/item/defense-les-industriels-veulent-une-relance.html

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