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

Federal contractors face great uncertainty as coronavirus spreads

Andrew Eversden

To stop the spread of the new coronavirus, federal agencies could shutter facilities. States and localities are already issuing shelter-in-place orders. And with obscure rules surrounding telework for federal contractors as well as the potential for supply chain disruptions and employee infections, there could be a new level of unpredictability for the contractor community.

“There's both a little bit of stability and a fair amount of uncertainty,” said Alan Chvotkin, executive vice president and counsel at the Professional Services Council, an interest group representing more than 400 government contractors.

“Things that were normal yesterday are not normal today. Behaviors that were planned for over the last couple days have been changed as government missions are changing,” he added.

In the near term, schedules laid out in contracts will likely experience delays and costs may increase due to disruptions caused by COVID-19, said Jonathan Aronie, head of law firm Sheppard Mullin's government contracts practice group. These disruptions could be caused by employees not coming into work, or their suppliers' employees not working.

President Donald Trump said March 18 that he's willing to use the Defense Production Act to force companies to manufacture goods the government needs to fight the virus, like ventilators or masks. These orders become “rated,” essentially allowing the government to skip to the front of the line.

That poses other challenges.

“While some companies are going to have problems that are slowing them down, other companies are going to have the problems associated with an influx of new orders,” Aronie said.

Aronie warned of a complex web of orders that companies could have to fulfill, pulling businesses in different directions. For example, he said, companies could get an order from a hospital, an order from a state government with a preexisting contract, and then a rated order from the federal government as well as agencies without rated authorities — potentially overwhelming and confusing manufacturers.

“Somehow you're going to have to make sense of this all,” Aronie said.

Effects of telework

Across the government, federal employees eligible for telework have generally been allowed to do so. But contractors haven't always followed the same rules. Not allowing contractors to telework could have significant ramifications, experts warned. Many contractors are required by their contracts to work in government facilities. But to stop the spread of COVID-19, access to these facilities could be limited or completely shut off.

This conundrum leaves contractors with questions for the government.

“Are there going to be access issues? Are contractors going to be asked in some cases to work from home where previously they were going into a government facility? What does that mean from a performance perspective? What does that mean from a cost perspective? How do you work that out with the government?” said Roger Waldron, president of the Coalition for Government Procurement. “These are some of the thing people are thinking about.”

On March 20, the Office of Management and Budget's deputy director for management, Margaret Weichert, released a memo urging agencies to “maximize telework for contractor employees.” But, as reported by Federal News Network, Weichert's memo did not mandate telework for federal contractors, leaving industry frustrated.

Several interest groups that represent government contractors called on congressional leaders and the White House to allow contractors to work from home. PSC wrote a letter to OMB on March 18 warning that not issuing guidance regarding extending telework flexibility to contractors could lead to layoffs.

“The duration of this is a huge uncertainty, if it does get worse before it gets better, if folks are really unable to perform the kind of work that need to be done at some government locations, that'll have some impact on people,” Chvotkin told Federal Times.

Over the last few days, several states such as California and New York have begun following shutdown orders that could leave contractors in tenuous positions. A Justice Department memo from March 20 also directed U.S. attorneys general to tell state and local officials that federal employees must be allowed to travel and commute, “even when travel restrictions are in place.” This action didn't mention contractors either.

State governments are going to have to “recognize that exceptions are going to be essential and some federal missions are just going to be so important to continue on that they'll have to accommodate them,” Chvotkin said.

How does this compare to the government shutdown?

This is the second consecutive year that contractors have faced challenges due to a crisis; last year's was the record 35-day government shutdown.

Some aspects of the 2019 shutdown and the coronavirus crisis are the same. For example, Aronie said, both increase delays and incur higher costs on contractors. The big difference is that some companies will receive more work, instead of less.

Another significant difference is that employees, both from the federal government and contractors, are still working — many federal employees from home.

This increase in telework has increased agencies' demands for IT infrastructure as they work to accommodate the rise in telework. Last week, the White House requested several billion dollars for agencies to improve their IT infrastructure.

Under the COVID-19 pandemic, the uncertainty is greater than during a government shutdown, experts said, because the ending was solely in the hands of the government.

“Even in the shutdown ... everybody recognized that it was going to end sooner or later. It was under both the congressional and presidential control to bring an end to it — not so here,” Chvotkin said. “There's nobody who can just decree that the coronavirus has been cured.”

https://www.federaltimes.com/govcon/contracting/2020/03/24/federal-contractors-face-great-uncertainty-as-coronavirus-spreads

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  • Esper backs a bigger Navy fleet, but moves to cut shipbuilding by 20 percent

    11 février 2020 | International, Naval

    Esper backs a bigger Navy fleet, but moves to cut shipbuilding by 20 percent

    By: David B. Larter WASHINGTON — U.S. Defense Secretary Mark Esper is calling for a 355-ship fleet by 2030, but for fiscal 2021, shipbuilding took a big hit in the Defense Department's budget request. The Navy's FY21 budget request asked for $19.9 billion for shipbuilding; that's $4.1 billion less than enacted levels for 2020. The ask also seeks in total four fewer ships than the service requested in its 2020 budget. The hefty slice out of shipbuilding comes in the first year the Navy requested full funding for the first Columbia-class submarine, which Navy leaders have warned for years would take up an enormous portion of the shipbuilding account. The Department of the Navy's total budget request (including both base funding and overseas contingency operations funding) is $207.1 billion, approximately split $161 billion for the Navy and $46 billion for the Marine Corps. News of the cuts come a day after Defense News held an exclusive interview with Esper during which he backed a larger, 355-ship fleet, but said the Navy must refocus around smaller, lighter ships to fit within budget constraints. In total, the Navy requested two Arleigh Burke-class destroyers, one Columbia-class submarine, one Virginia-class submarine, one FFG(X) future frigate, one LPD-17 amphibious transport dock, and two towing and salvage ships. The budget reflected a cut to the Virginia-class sub and FFG(X) programs, each of which were supposed to be two ships in 2021, according to last year's 30-year shipbuilding plan. Both cuts were forecast in a memo from the White House's Office of Management and Budget obtained by Defense News in December. The memo also called for cutting an Arleigh Burke destroyer, but it appears to have been restored in trade-offs. Another controversial move in the budget is the decommissioning of the first four littoral combat ships, likewise a move forecast in the OMB memo, as well as the early decommissioning of a dock landing ship. The budget also requests a $2.5 billion cut to aircraft procurement over 2020's enacted levels, requesting $17.2 billion. The budget calls for 24 F/A-18E/F Super Hornets fighter jets, 21 F-35C jets (between the Navy and Marine Corps), and four E-2D Hawkeye aircraft. The budget also funds $160 million in shipyard upgrades, as well as research into the Common Hull Auxiliary Multi-Mission Platform to the tune of $17 million. There is also $208 million in research and development for the DDG-1000 class, as well as $216 million for the Ford class. It also funds the procurement of two new large unmanned surface vessels. Columbia cuts? For years the Navy has warned that once the service starts buying the Columbia class, it's going to have a significant impact on everything else the Navy wants to buy. In a 2013 hearing before the House Armed Service Committee's sea power subpanel, then-Navy Director of Undersea Warfare Rear Adm. Richard Breckenridge testified that failure to realign the Department of Defense's budget by even 1 percent would have a devastating impact on the Navy's shipbuilding program. "The Navy recognizes that without a supplement this is going to have a devastating impact on our other general-purpose ships and is working with the [Office of the Secretary of Defense] and with Congress to identify the funds necessary, which I mentioned earlier represent less than 1 percent of the DoD budget for a 15-year period, to provide relief and fund this separately above and beyond our traditional norms for our shipbuilding budget,” Breckenridge said. But with the rubber meeting the road, the Navy's budget instead went down by almost 20 percent. In an interview with Defense News, Esper rejected the idea of moving Columbia out of the Navy's shipbuilding account, even as he called for a much larger fleet in the future. The Navy must tighten its belt to reduce the impact on the budget, Esper said, adding that the Air Force is in a similar financial bind. “Clearly the Columbia is a big bill, but it's a big bill we have to pay,” Esper said. “That's the Navy's bill. The Air Force has a bill called bombers and ground-based strategic deterrent, so that's a bill they have to pay. “We all recognize that. Acting Secretary [of the Navy Thomas] Modly and I have spoken about this. He believes, and I think he's absolutely correct, that there are more and more efficiencies to be found within the department, the Navy and the Marine Corps, that they can free up money to invest into ships, into platforms.” It is unclear, however, where the Navy will be able to find that money. Despite years of record defense budgets under the Trump administration, the Navy — at its current size of 294 ships — is struggling to field sufficient manpower. It has also struggled with the capacity of its private shipyards and is scouring the country for new places to fix its ships. Furthermore, there are questions about whether the Navy is adequately funding its surge forces, given that the Abraham Lincoln Carrier Strike Group was stranded on a Middle East deployment for more than 10 months because the carrier relieving it had a casualty. The Navy declined to use its surge forces and instead extended Abraham Lincoln's deployment, according to Chief of Naval Operations Adm. Michael Gilday. 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If you go look at the think tank literature that's out there, they will tell you generally the same thing. We need to move forward in that direction.” Optionally manned vs. optionally unmanned Experts disagree over the degree to which the Navy should pursue a more lightly manned construct, and the difference appears to be philosophical: The Navy is developing an “optionally manned” ship; a recent Center for Strategic and Budgetary Assessments study led by analyst Bryan Clark is proposing an “optionally unmanned” ship. It may seem like a small difference, but building a ship designed from the ground up to support humans is a major difference from a boat that can accommodate a few humans if the operators want to. The Navy is currently pursuing a large unmanned surface vessel, or LUSV, which is based on a commercial offshore support vessel, as part of an effort that started in the aegis of the Office of the Secretary of Defense's Special Capabilities Office and is now run by the Navy. The service describes its planned LUSV as an external missile magazine that can significantly boost the number of missile tubes fielded for significantly less money than buying Arleigh Burke-class destroyers, which cost nearly $2 billion per hull. The Navy has discussed equipping the LUSV with the ability to house sailors, but the vessel would be largely designed as an unmanned platform, which would save money because there likely won't be a need for structure that supports human habitation. Sailors supporting an LUSV might use a port-a-potty and eat MREs rather than building an at-sea septic system and galley, for example. But therein lies the problem with the LUSV, according to the study by CSBA: What would the Navy do with those vessels, which it intends to buy in mass, when it's not trading missiles with China? Before the Navy gets too far down the road of fielding an optionally manned LUSV, the Navy should pony up for a more expensive but more useful corvette that, in the event of war, could be unmanned and used as the envisioned external missile magazine, the study said. “The Navy's planned LUSV would also be an approximately 2,000-ton ship based on an [offshore support vessel] design,” the study read. “In contrast to the optionally manned LUSV, the DDC [corvette] would be an optionally unmanned vessel that would normally operate with a crew. By having small crews, DDCs could contribute to peacetime training, engagement, maritime security, and deterrence.” In other words, for every scenario short of war, there would be a small warship that can execute normal naval missions — missions that ideally deter conflict from occurring in the first place. The study described a vessel that would be crewed with as many as 24 sailors, but would retain the ability to be unmanned in a crisis. “Instead of procuring an optionally manned LUSV that may be difficult to employ throughout the spectrum of competition and conflict, CSBA's plan introduces a similarly designed DDC that is designed to be, conversely, optionally unmanned and would normally operate with small crews of around 15–24 personnel,” the report read. “DDCs primarily armed with offensive weapons would serve as offboard magazines for force packages.” https://www.defensenews.com/naval/2020/02/10/355-as-secdef-backs-a-bigger-fleet-dod-moves-to-cut-shipbuilding-by-20-percent/

  • Belgian Navy tests Austrian copter drone for at-sea surveillance

    5 juillet 2018 | International, Naval, C4ISR

    Belgian Navy tests Austrian copter drone for at-sea surveillance

    By: Sebastian Sprenger COLOGNE, Germany ― The Belgian Navy has finished a weekslong series of test flights with Schiebel's CAMCOPTER S-100 drone as part of the sea service's search for new maritime-surveillance and search-and-rescue equipment, the company announced Tuesday. The test plan, which ran June 21 to July 1, constituted an initial step for Belgian officials to identify “the possibilities of such systems and sensors,” Lt. Cmdr. D. Biermans is quoted as saying in the statement. In particular, officials had an eye on the unmanned copter's operation in the country's confined airspace — on land and over water ― and “opportunities for the domain of coastal security and prospects for further developments,” Biermans said. Belgium sports a relatively straight coastline measuring close to 70 kilometers, roughly equivalent in length to that between Fort Lauderdale and West Palm Beach in Florida. The European nation is joining a growing trend among navies worldwide to employ UAVs to act as the eyes and ears of military and coast guard vessels. Equipped with a variety of sensors, the aircraft can help spot potential threats and help rescue people lost at sea. “Given the complexity of introducing a [maritime tactical unmanned aircraft system] within the Navy and its impact on the concepts of operation and tactics, this was a first informative step and will be part of a series of tests and experiments with a variety of vehicles and sensors,” Biermans said. Schiebel's CAMCOPTER S-100 has performed “thousands” of takeoffs and landings from aboard more than 30 ships by a host of international customers, company spokeswoman Sanna Raza told Defense News. She declined to say what countries' programs the company is eyeing next, citing confidentiality agreements. Based in Vienna, Austria, Schiebel plans to focus on integrating next-generation sensors to further expand its portfolio in the areas of intelligence, reconnaissance and surveillance, according to Raza. https://www.defensenews.com/unmanned/2018/07/03/belgian-navy-tests-austrian-copter-drone-for-at-sea-surveillance/

  • Eurofighter: flight tests continue with the E-SCAN radar

    3 juin 2020 | International, Aérospatial

    Eurofighter: flight tests continue with the E-SCAN radar

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