25 avril 2024 | International, Terrestre
27 avril 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
COVID cash crunch still hurting small defense firms
By: Joe Gould
WASHINGTON ― Cash flow for small defense contractors is continuing to suffer under the coronavirus pandemic, according to a survey by the National Defense Industrial Association.
The survey echoes warnings from the Pentagon that these firms, part of a vast network of suppliers that makes up the defense-industrial base, are especially vulnerable. The Pentagon this week announced it will make $3 billion in new “progress payments" to increase cash flow to prime contractors, expecting the money would then trickle down.
Of the NDIA survey respondents:
- 67 percent of companies with less than $1 million in annual revenue have seen a cash-flow disruption.
- 60 percent said the crisis has interfered with their cash flow.
- 60 percent expect to have long-term financial and cash-flow issues stemming from the crisis.
- 66 percent said accelerated payments from the Defense Department or prime contractors would be the most helpful step toward business recovery.
L3Harris Technologies said this week it will issue more than $100 million in payments to its small suppliers. Lockheed Martin announced Friday it executed $256 million in accelerated payment toward its $450 million goal.
Both of these promised followed the Pentagon's announcement this month that it will boost progress payment rates from 80 percent to 90 percent for large companies, and to 95 percent for small businesses.
The payments are made to contractors, usually on a monthly basis, for costs incurred and work performed under a contract; a 90 percent rate means that if $1 million in expenses are submitted on the program, the Defense Department will reimburse $900,000.
Sixty-six percent of the respondents also said it would help them to receive flexibility on the performance of their contracts.
Seventy-two percent expected to avoid overruns on their firm fixed-price contracts as a result of disruptions caused by COVID-19.
On Thursday, acquisitions officials with the Army said they expect costs to rise, and in response will guard against program slips and closely watch vulnerable lower-tier companies with less slack in their workforces. Pentagon officials anticipate workforce and supply chain issues will yield a three-month delay across the majority of its Major Defense Acquisition Program portfolio.
“The supply chain does have some challenges, and that's probably where the vast majority of any slips would occur that are tied to individual companies,” said Bruce Jette, the Army's acquisition chief. “These companies are small, and if one person gets COVID in the company, the next thing you know you've lost 14 days with the company because everybody that didn't get it is in quarantine.”
As of April 10, 769 small businesses responded to the NDIA survey. The number of companies expecting cash-flow disruptions was slightly lower last month, when 458 small businesses responded.
Factoring into cash-flow problems, according to the NDIA, are cuts to billable hours, delayed payments from prime contractors and government customers, a lack of telework options or schedule flexibility in contracts, and shelter-in-place orders that prevent employees from working.
Beyond revenue expectations, meeting contract obligations and access to capital are where small businesses are taking the biggest hits during the pandemic. Other areas of difficulty were workforce availability, access to secure facilities, contracting officers accessibility, clear information from the Defense Department, confidence in the supply chain, and stock and cost of materials.
The technology and services sectors reported more disturbances from the crisis than the manufacturing sector, NDIA noted. And businesses with fewer than 50 employees are feeling the brunt harder than businesses with more than 500 employees.
Defense Contract Management Agency data this week showed that 106 out of 10,509 primary Pentagon contractors are closed, and 68 companies closed and then reopened. Of 11,413 subcontractors, 427 were closed, with 147 having closed and reopened.
https://www.defensenews.com/2020/04/24/covid-cash-crunch-still-hurting-small-defense-firms/
Sur le même sujet
-
-
9 février 2018 | International, Aérospatial
Lockheed Martin Invites Innovators and Entrepreneurs to Join the Next Space Age with 'Open Space' Satellite Innovation Project
Company Releases Satellite Specs; Offers New Opportunities to Aspiring Space Technologists SUNNYVALE, Calif., Feb. 8, 2018 /PRNewswire/ -- For the first time, Lockheed Martin (NYSE:LMT) has publicly released specifications for its satellite platforms with the goal of offering new opportunities for collaboration to companies aspiring to send innovative technologies to space. As part of a new satellite innovation initiative called Lockheed Martin Open Space, and building on expertise from the more than 800 satellites Lockheed Martin has produced, the company is publishing technical details about the payload accommodation information for its flagship LM 2100 satellite platform, its LM 400 small satellite, and two variants of its new LM 50 nanosat series. In an event yesterday in Silicon Valley, Lockheed Martin invited start-ups, researchers and established companies alike to propose technologies that could help solve some of today's most pressing challenges in space. With numerous launches and hosted payload slots on the docket, the company is looking to collaborate with a new generation of companies to find opportunities to put innovations in orbit and beyond. "Our goal with Lockheed Martin Open Space is twofold: first, to help more companies and innovators do amazing things in space, and second, to create new avenues for collaboration so we can move faster to tackle our customers' most pressing challenges," said Rick Ambrose, executive vice president of Lockheed Martin Space. "We're not just offering launch slots, we're ready to help new companies integrate their groundbreaking technologies with powerful satellite platforms. We believe there's significant untapped potential out there waiting to be unleashed." The company is looking for non-proprietary technologies that will help protect, connect and inspire the world. Potential applications include helping first responders address crises faster, studying the environment, creating ultra-high-capacity communications links and adapting low-cost commercial technology to the punishing environments of space. Interested companies or individuals can download the payload accommodation specifications at www.lockheedmartin.com/openspace and submit their concepts online. The submission page will be open from now through May 11. A team of Lockheed Martin experts will review each submission and follow up to discuss opportunities and provide feedback to submitters. "We're ready to explore and collaborate on new opportunities, and we're challenging the best and brightest to join us," said Ambrose. "Space isn't just a place to go. It's a place to do. So let's get new innovators plugged in to tomorrow's space opportunities. Let's collaborate on the country's toughest challenges. Let's do great things in space together." The venerable LM 2100 is the foundation for more than 40 satellites in orbit today, including weather, missile warning and commercial communications satellites. The LM 400 is a reconfigurable bus that can go to LEO and GEO orbits and can be delivered as quickly as 24 months from order. The LM 50 is a small but powerful satellite series that can host a wide array of remote sensing, communications and scientific payloads. For more information about Lockheed Martin's family of satellites visit www.lockheedmartin.com/satellites. https://news.lockheedmartin.com/2018-02-08-Lockheed-Martin-Invites-Innovators-and-Entrepreneurs-to-Join-the-Next-Space-Age-with-Open-Space-Satellite-Innovation-Project
-
10 octobre 2024 | International, C4ISR, Sécurité
OpenAI Blocks 20 Global Malicious Campaigns Using AI for Cybercrime and Disinformation
OpenAI disrupts 20 malicious operations exploiting AI for cybercrime, including malware debugging, social media manipulation, and misinformation.