29 avril 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Global Defense Spending Decline Expected As Nations Deal with Coronavirus

Experts see domestic projects taking priority over national security in the coming years.

After five straight years of growth, global defense spending is expected to decline in the coming years as nations deal with the economic fallout of the coronavirus pandemic, analysts say.

In 2019, global defense spending topped $1.9 trillion, according to the Stockholm International Peace Research Institute's latest tally. The U.S. represents 38 percent of the world's defense expenditures and with China, the two superpowers account for 52 percent of the world's defense spending. But because of COVID-19, experts anticipate a shift government spending worldwide toward domestic projects and away from weapons and the military.

“What we can expect is that spending [is] really going to decrease,” Nan Tian, a defense spending expert with the institute, said Tuesday during a Stimson Center webcast. “We've seen this historically following the [2008 and 2009 financial] crisis where many countries in Europe really started to cut back on military spending.”

Even before the coronavirus sent the global economy into a tailspin, U.S. defense spending had been predicted to flatten in the coming years. Now with trillions of dollars being spent on massive coronavirus stimulus packages, flat defense spending levels could wind up being a best-case scenario.

“In today's world with [coronavirus], flat defense budget, I think, is what everybody is hoping for because it could go the other direction; it could go negative,” Hawk Carlisle, president and CEO of the National Defense Industrial Association and a retired four-star commander of Air Combat Command and Pacific Air Forces, said in an interview Tuesday. “This is going to be years to climb out of.”

One reason for the expected spending dip: the deficit. Regardless of the results of the November presidential and congressional elections, deficit reduction is likely to become a priority. A recent estimate pegs the 2020 deficit at $3.8 trillion. But it is expected that a Trump re-election would keep Republicans in more of a spending mood.

“If the presidency goes to a Democrat, then Republicans are going to get more about being fiscal conservatives again sooner,” Todd Harrison, a defense budget expert with the Center for Strategic and International Studies, or CSIS, said during a Monday webcast. “If Trump wins a second term, we probably have another year or two reprieve from that.”

Mackenzie Eaglen of the American Enterprise Institute is wary that lawmakers eager to reduce federal spending in the wake of coronavirus bailouts could enact a deficit-cutting measure akin to the Budget Control Act of 2011, which capped defense spending annually between 2013 and 2021.

“The Budget Control Act by another name ... could come as fast as next [fiscal] year,” she said on the same webcast.

While defense and security spending is typically a top priority of Republicans and defense-minded Democrats, stabilizing the U.S. economy and healthcare could become a higher priority regardless of who wins the election and control in Congress. Among voters in both parties, there is wide public support for reducing expensive overseas military interventions.

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“[I]solationism may exert a countervailing force, as there is demand to steer resources away from defense and towards domestic needs (healthcare, education, jobs),” Byron Callan, an analyst with Capital Alpha Partners, wrote in an April 23 note to investors.

“[W]e are seeing that awarding disproportionate resources to military spending may be weakening the resilience of other sectors in our economy,” Mandy Smithberger — director of the Straus Military Reform Project at the Center for Defense Information, part of the Project on Government Oversight — said on the Stimson Center webcast.

“I think we are going to be seeing real political debate about how much money should go to military spending, how much we should be prioritizing arms sales and interests of the defense industry,” she said.

Unlike the past decade when foreign arms sales, to some extent, were a backstop to weapon makers amid U.S. defense spending declines, this time around will likely be different since the world economy is dealing with coronavirus. Smithberger said low oil prices could weaken the buying power in the region that spends heavily on U.S. weapons.

While the U.S. and China remain the top two defense spenders, last year India and Russia jumped ahead of Saudi Arabia, which fell to fifth on the list. Germany climbed from ninth to seventh — jumping ahead of the U.K. and Japan. NATO allies collectively spent just over $1 trillion. All of that spending is likely to drop.

https://www.defenseone.com/politics/2020/04/global-defense-spending-decline-expected-nations-deal-coronavirus/164997

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  • Contract Awards by US Department of Defense - September 10, 2019

    11 septembre 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contract Awards by US Department of Defense - September 10, 2019

    NAVY Collins Aerospace, Cedar Rapids, Iowa, is awarded a $310,509,144 modification (P00009) to a previously awarded firm-fixed-price contract (N00421-18-D-0004). This modification exercises an option for the procurement of AN/ARC-210(v) radios for installation in over 400 strategic and tactical airborne, seaborne and land based (mobile and fixed) platforms for the Navy, Marine Corps, Army, Coast Guard, other government agencies and foreign military sales customers. Work will be performed in Cedar Rapids, Iowa, with deliveries expected to be completed in September 2022. No funds are being obligated at time of award; funds will be obligated on individual delivery orders as they are issued. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. ViaSat Inc., of Carlsbad, California, is awarded a $100,465,034 modification to its current indefinite-delivery/indefinite-quantity contract (N00039-15-D-0008) to increase the ceiling of the existing production contract line item number (CLIN), and the systems engineering and integration CLIN of the referenced contract. This ceiling increase will implement the capabilities identified in the Joint Requirements Oversight Council (JROC) memorandum dated Aug. 20, 2018, wherein the JROC endorsed the advanced capabilities of Concurrent Mutli-Netting-4 (CMN-4), Concurrent Contention Receive and Enhanced Throughput as the Department of Defense baseline for all future upgrades to any platform requiring Link-16 tactical data links. In response to the JROC memorandum, current Link-16 platform users identified the need for the procurement and/or retrofit of 3,370 additional Multifunctional Information Distribution System Joint Tactical Radio System (MIDS JTRS) CMN-4, F-22 Raptor, Tactical Targeting Network Technology terminals. This increase in scope will be in addition to the current scope in the original Class Justification and Approval (CJ&A) No. 17,226 approved April 25, 2014, for the MIDS JTRS, the amended CJ&A No. 18,012 approved Jan. 18, 2017, for the addition of the MIDS JTRS TTNT development effort, CJ&A No. 18,415 approved Sept. 11, 2018, for the addition of MIDS Modernization Increment 2, retrofits, and additional MIDS JTRS terminals, not including F-22s, and the initial CJ&A 19,415 approved July 2, 2019, to implement the JROC memorandum as described above. The modification will increase the contract value to $889,465,034. This contract combines purchases for the Navy, Air Force and MIDS Program Office, as well as to the governments of Austria, Chile, Finland, Israel, Jordan, Japan, Kuwait, Malaysia, Morocco, Oman, Pakistan, Qatar, South Korea, Saudi Arabia, Singapore, Sweden, Switzerland, Taiwan, Thailand, United Arab Emirates, Australia, Canada, New Zealand and the United Kingdom. This contract also includes purchases to NATO and all NATO nations under the Foreign Military Sales program. Work will be performed in Carlsbad, California, and is expected to be completed May 2020. No additional funding will be placed on contract or obligated at the time of modification award. Existing contract funds will not expire at the end of the current fiscal year. Future contract actions will be issued and funds obligated as individual delivery orders. This contract modification was not competitively procured because it is a follow on, sole source, multiple award procurement pursuant to the authority of Title 10 U.S. Code 2304(c)(1): only one or a limited number of responsible sources (Federal Acquisition Regulation subpart 6.302-1(a)(2)). Non-competitive procedures were approved for this modification under CJ&A 19,415. Naval Information Warfare System Command, San Diego, California, is the contracting activity. Siemens Government Technologies Inc., Arlington, Virginia, is awarded a firm-fixed-price modification of $46,677,053 to increase the maximum dollar value of a task order (N39430-18-F-9924) for energy improvements at Naval Air Station Sigonella, Naval Station Rota and Naval Support Activity Naples. The total cumulative value of the contract is $218,220,667. Work will be performed in Naples, Italy (50%); Sigonella, Italy (30%); and Rota, Spain (20%), and is expected to be completed October 2041. The work provides for design and installation of the following energy conservation measures: boiler plants, chiller systems, motors, water and lighting improvements. The work also provides for performance period services consisting of measurement and verification, operations and maintenance, and repair and replacement services. No funds will be obligated with this award, as private financing obtained by the contractor will be used for the construction phase. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity. Data Link Solutions LLC, Cedar Rapids, Iowa, is awarded a $30,000,000 modification to its current indefinite-delivery/indefinite-quantity contract (N00039-15-D-0007) to increase the ceiling of the existing systems engineering and integration contract line item number (CLIN) of the referenced contract. 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This increase in scope will be in addition to the current scope in the original Class Justification and Approval (CJ&A) No. 17,226 approved April 25, 2014, for the MIDS JTRS, the amended CJ&A No. 18,012 approved Jan. 18, 2017, for the addition of the MIDS JTRS TTNT development effort, CJ&A No. 18,415 approved Sept. 11, 2018, for the addition of MIDS Modernization Increment 2, retrofits and additional MIDS JTRS terminals, not including F-22s, and the initial CJ&A 19,415 approved July 2, 2019, to implement the JROC memorandum as described above. The contract covers the production, development and sustainment of the MIDS JTRS terminals. The modification will increase the contract value to $1,254,529,670. 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This contract modification was not competitively procured because it is a follow-on sole-source, multiple-award procurement pursuant to the authority of Title 10 U.S. Code 2304(c)(1): only one or a limited number of responsible sources (Federal Acquisition Regulation subpart 6.302-1(a)(2)). Non-competitive procedures were approved for this modification under CJ&A 19,415. Naval Information Warfare System Command, San Diego, California, is the contracting activity. ' Simmonds Precision Products, Vergennes, Vermont, is awarded a $12,986,404 cost-plus-fixed-fee contract for the "Low Cost Air-Drop Munition Weapon System Development Program." Work will be performed in Simmonds Precision Products, Vergennes, Vermont (58%); Aerojet Rocketdyne Inc., Rancho Cordova, California (19%); Developmental & Demonstration Testing Facilities (to be determined) (11%); Systima Technologies Inc., Kirkland, Washington (6%); Moog Inc., Elma, New York (5%); and National Technical Systems Boxborough, Boxborough, Massachusetts (1%), and is expected to be completed February 2021. Fiscal 2018 research, development, test and evaluation (Navy) funds for $8,208,343 will be obligated at time of award, none of which will expire at end of current fiscal year. This contract was competitively procured under N00014-19-S-B001, long range broad agency announcement (BAA) for Navy and Marine Corps Science and Technology. Since proposals will be received throughout the year under the long range BAA, the number of proposals received in response to the solicitation is unknown. The Office of Naval Research, Arlington, Virginia, is the contracting activity (N00014-19-C-1062). Booz Allen Hamilton Inc., McLean, Virginia, is awarded an $11,765,526 time and material modification to exercise Option Period One under a previously awarded contract N00189-18-F-Z362. The work provides financial improvement and audit readiness support services to the Deputy Commandant, Programs and Resources, to address OMB A-123 governance, audit response coordination and audit coaching. After award, this contract was transferred to the Marine Corps Installations Command Headquarters, Contracting Office, and was assigned a new contract number M95494-19-F-0032. Work will be performed in Arlington, Virginia (75%); and Quantico, Virginia (25%), and is expected to be completed September 2020. Fiscal 2019 operation and maintenance (Marine Corps) funds for $1,527,843 will be obligated at the time of award and will expire at the end of the current fiscal year. 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