10 septembre 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Industry could wait months for COVID reimbursements from Pentagon

By:

WASHINGTON — As the defense department seeks billions in emergency funding to reimburse industry for costs incurred during the COVID-19 pandemic, the Pentagon's top acquisition official pledged not to rush that money out the door.

Speaking at the annual Defense News Conference, Ellen Lord, undersecretary of defense for acquisition and sustainment, said it will likely take five to six months before any reimbursements to industry under the Coronavirus Aid, Relief, and Economic Security (CARES) act will take place as the department seeks a “very data driven approach” to that money.

Section 3610 of the CARES act allows firms serving the federal government to seek reimbursement for pandemic-related expenses, but Congress hasn't passed corresponding appropriations. Defense officials have said they need roughly $10 billion, and that without added funding from Congress, the Pentagon would have to dip into modernization and readiness funds.

“We believe we need that appropriation to maintain readiness because if we do not get that what we are going to find is we are not going to get the number of units delivered, we are not going to maintain warfighter readiness, we're not going to move forward in modernization,” Lord said. “We would like to take the one-time hit and then see where we go from there.”

Should Congress appropriate the requested funds, the Pentagon would issue a request for proposal, with the large primes gathering data from up and down their supply chains before returning with their requests to the Pentagon. That process will likely take two to three months, Lord said.

“Then we want to look at all of the proposals at once. It isn't going to be a first-in-first-out and we have to rationalize using the rules we've put in place, what would be reimbursable, and what's not,” she added. “So overall, we think five to six months, in terms of a process.”

When the COVID pandemic struck in March, hundreds of defense subcontractors had to close up shop. As of now, only 30 remain shuttered, Lord said, although she acknowledged that the department is keeping a wary eye on the situation.

“What we are looking for is whether or not we're maintaining warfighter readiness for our production programs, and then relative to modernization, whether we are hitting key milestones relative to development programs,” she said. “We have seen some slowdowns. We are carefully monitoring, using monthly metrics, where we are.”

While the most recent round of quarterly earnings reports from public defense companies did not show a major slowdown from COVID, Lord warned that those reports “in large part don't reflect the hits that were taken by business,” warning of a “delayed response” in terms of the diseases' economic impact on the sector.

“I would contend that most of the effects of COVID haven't yet been seen, because most companies gave their employees time off, they stretched out production, paid a lot of people for working 100% when perhaps they were only getting 50% of the hours in and so forth,” she said.

“So I think the system has absorbed it up to this point in time. Now when we get to the point where we're having payments and incentive fees and award fees earned, and if we haven't done the deliveries, that's where you're going to see the hit.”

https://www.defensenews.com/smr/defense-news-conference/2020/09/09/industry-could-wait-months-for-covid-reimbursements-from-pentagon

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  • Here's the Air Force's plan to revolutionize the way it trains pilots

    7 mai 2019 | International, Aérospatial

    Here's the Air Force's plan to revolutionize the way it trains pilots

    Oriana Pawlyk, Military.com When Air Force Secretary Heather Wilson visited AFWERX's Pilot Training Next program in Austin, Texas, last year, she watched as trainees took flight from the seats in front of her — through the use of virtual reality. It piqued her interest enough to ask service officials to explore waysthat similar flight simulator programs could be introduced to high schools to get young students involved in the nation's endeavors to create more pilots. Officials with Air Education and Training Command (AETC) are now gearing up to present Wilson's successor with a business case for more widespread use of the system, within the force. The move provides a glimpse into Air Force leaders' thinking as they overhaul the pilot training curriculum, introducing one that augments time airborne in the cockpit with simulators and technology on the ground. It comes as the Air Force readies itself for the possibility of complex conflict with a peer-level adversary equipped with long-range missiles and advanced combat aircraft. It's a future that may represent a strong contrast to recent decades, in which the Air Force has flown in largely uncontested airspace supporting ground troops. The service is attempting to boost its pilot ranks amid a longterm pilot shortage, even as its trainer fleet ages. Air Force officials say they want to move away from the service's old-fashioned, "industrial" approach to training — having pilots sit in classrooms for weeks then moving on to a trainer. This means using virtual reality earlier and more frequently in the training pipeline. As the service prepares to bring its latest trainer, known as the T-X, into the fold, it is proposing a more "concentrated dose" of training to seamlessly transition from virtual reality to the trainer and, finally, to the Formal Training Unit, or FTU. The system is well poised to reform in a few ways, said Gen. Mike Holmes, commander of Air Combat Command (ACC). Using the low-cost immersive environment of virtual reality, together with "competency-based learning," and moving skillset testing at the graduate level to an earlier place in the model, "would experience our pilots much faster," he said. "Those are two things that are poised to make a revolutionary changein how well we train pilots and in how long it takes us to train pilots," Holmes said Tuesday in an interview with Military.com. "I want to see how fast and well I can produce experienced pilots." Pilots end up leaving the service if they feel dissatisfied and lack a sense of purpose, added Lt. Gen. Steven Kwast, AETC commander. "You have to fly a lot to be good at what you do, and we don't have the money, and we don't have the weather, and we don't have the range space ... [because of] sequestration. And all these things that are politically driven oftentimes are frustrating the force," Kwast said in a separate interview. Airline hiring efforts are the biggest factor that drives pilot retention and production problem in the services, officials have said. Old learning mechanisms also bog down the system, often adding to pilots' frustration, Kwast said. "We would [add] layers of things over time" through the course of a pilot's service, "basically assuming, 'You can't handle the truth!' or 'You're not smart enough to be able to learn this holistically, we have to give it to you piecemeal and then you'd put it together in your brain over time.' That's why it would take seven years to make a great mission commander pilot." But now, he said "We're breaking that paradigm." Trainer fleet in trouble? The service still relies heavily on its trainer fleet for training, even though virtual reality is the new frontier, Holmes said. "There's still no substitute for being in a real airplane," he said. "I think we'll always want a mix of learning our skills cheaply, but also build on decision-making in a real airplane." The T-38 Talon has been the backbone of the Air Force's undergraduate pilot training, or UPT, program for decades. But last year, the trainer fleet was plagued with a series of crashes, two of which were fatal. Those selected to fly bombers and fighters typically receive their advanced pilot training in the T-38. The T-1A Jayhawk, meanwhile, is used in advanced training for students who are slated to go into cargo or tanker aircraft. The T-6 Texan II, used for instrument familiarization and low-level and formation flying, also has had its share of problems. Last year, the Air Force ordered an operational pause for the T-6 fleet after pilots suffered a series of unexplained physiological episodes, or UPEs. As a result, AETC on Feb. 1 ordered an indefinite operational pause for all T-6 aircraft at Columbus Air Force Base, Mississippi; Vance Air Force Base, Oklahoma; and Sheppard Air Force Base, Texas. That pause was lifted Feb. 28. A team of experts determined that the T-6's On-Board Oxygen Generating System (OBOGS) filter and drain valvesfailed at higher rates than expected. The discovery led to repairs and increased inspections, but pilotscontinued to suffer from UPEs. A T-6 trainer from Sheppard Air Force Base, Texas, crashed just last week. The Air Force is preparing to receive new trainer jets to replace its current Northrop Grumman-made T-38s, some of which date to the mid-1960s. In September, the service awarded Boeing Co. a $9.2 billion contract to build its next aircraft for training pilots, known as the T-X program. The first T-X aircraft and simulators are scheduled to arrive at Joint Base San Antonio-Randolph, Texas, in 2023. The service has committed to buying 351 T-X jets, 46 simulators and associated ground equipment. The pay ment structure, officials have said, also allows for an indefinite-delivery, indefinite-quantity option to give the Air Force the opportunity to purchase up to 475 aircraft and 120 simulators. Delays to this program or other unforeseen challenges could have catastrophic consequences, said retired Gen. T. Michael "Buzz" Moseley, former Air Force chief of staff. "My anxiety over this when I was the chief [is that] we are one sortie away from this older inventory having a problem," Moseley, an F-15 Eagle pilot, said in a recent interview with Military.com. "Here we are in 2019, and we're going to fly these airplanes until 2024 before T-X starts coming in." Kwast and Holmes agreed that the T-38 fleet will continue to undergo any upgrades necessary to keep them flying as long as it makes sense. "You can make anything last longer; it just takes more money to sustain," Kwast said. "I guarantee that the T-1, the T-38 and the T-6 all can last as long as we need them to last, depending on the business case and the amount of money you want to spend. But will the T-38 or the T-1 become too expensive, and [therefore], we have to jump to a different technology? Then we would look at other options." Boeing said it stands ready to produce the T-X. "Our T-X program, including engineering, manufacturing and test, is located in long-established Boeing St. Louis facilities," wrote Rachelle Lockhart, spokeswoman for the company's T-X program, in an email. "In fact, we built and assembled our first two T-X aircraft in St. Louis prior to contract award to prove the maturity of our design, repeatability in manufacturing and performance. We're now on contract, executing on schedule as planned, as are our suppliers." She added the trainer's production schedule could be advanced at the Air Force's request. "The US Air Force plan calls for a full production rate of 48 jets a year, and we will meet the customer need," Lockhart said. "Should the Air Force request a higher rate of production, we are well positioned to accommodate it." Full article: https://www.businessinsider.com/air-force-plan-to-revolutionize-pilot-training-2019-5

  • SAIC to buy rival government services contractor Engility for $1.5 billion

    11 septembre 2018 | International, C4ISR

    SAIC to buy rival government services contractor Engility for $1.5 billion

    WASHINGTON (Reuters) - Science Applications International Corp (SAIC) (SAIC.N) said on Monday it will acquire Engility Holdings Inc (EGL.N) for $1.5 billion in stock, a deal that will turn it into the second-largest independent U.S. government services contractor. The acquisition is the latest example of how increased defense spending under President Donald Trump and the Republican-led Congress is driving contractors to pursue mergers so they have more scale to bid on bigger projects, spanning everything from outdated computer systems to space exploration. Engility shareholders will receive $40.44 in SAIC stock for each of their shares, an 11.5 percent premium to Engility's closing price of $36.24 on Friday, the companies said. SAIC will assume $900 million in Engility debt, giving the deal a total value of about $2.5 billion. On completion of the deal early next year, SAIC's board will expand to 11 seats from nine, and SAIC shareholders will own about 72 percent of the combined company. Engility, based in Chantilly, Virginia, provides skilled personnel to the U.S. departments of defense, homeland security and justice, among others. The acquisition will boost SAIC's offerings to its space customers and expand its customer base in the intelligence community, SAIC Chief Executive Tony Moraco said in an interview. The increased U.S. defense budget and a two-year budget deal reached earlier this year that lifted caps on defense spending also emboldened SAIC to pursue the deal, Moraco added. Full article: https://www.reuters.com/article/us-engilityholdings-m-a-saic/saic-to-buy-rival-government-services-contractor-engility-for-1-5-billion-idUSKCN1LQ1CG

  • New in 2019: Air Force looks for new bomb designs to fight Russia and China

    4 janvier 2019 | International, Aérospatial

    New in 2019: Air Force looks for new bomb designs to fight Russia and China

    By: Kyle Rempfer A growing cohort of Air Force researchers are arguing that the service needs to undergo a munitions revolution if it is to take on a peer-level adversary in open conflict. “We're developing a range of technologies to enable next-generation and improve precision effects on the battlefield,” Col. Garry Haase, who helms the Air Force Research Lab Munitions Directorate, told an audience at the Air Force Association Annual Conference this fall. In some instances, that will mean more powerful munitions to breach and destroy Russian and Chinese structures in the event of war. “There is now a shift in emphasis away from minimizing to maximizing effects in a high-end fight,” said John Wilcox, vice president of advanced programs and technology at Northrop Grumman, at the conference. “Requirements from our missions directorate say we continue to have to deal with the whole spectrum of threats as we shift to more of a near-peer threat focus,” Wilcox added. “We are looking at larger munitions with bigger effects.” And while neither members of the AFA panel named Russia or China specifically, a recent study by the Mitchell Institute, which is aligned with the Air Force Association, certainly did. In the document, titled “The Munition Effects Revolution," several retired senior Air Force officers argue that the U.S. munitions arsenal is overdue for a shakeup. “The bomb body, a steel shell filled with explosive material, is relatively unchanged across the past 100 years," the study reads. "But some elements of modern munitions have significantly evolved—particularly guidance elements. Munition effects—the destructive envelope of heat, blast, and fragmentation—remain essentially unchanged.” High demand for combat aircraft is a key driver behind the need for enhanced munitions options, according to the Mitchell Institute. “The Air Force is currently operating the smallest and oldest aircraft force in its history,” the study reads. “Additionally, current mission capable rates are low and pilots are in increasingly short supply. To best meet combatant command requirements amidst these constraints, it is crucial to ensure each sortie flown and every bomb dropped yields maximum potential.” https://www.airforcetimes.com/news/your-air-force/2019/01/03/new-in-2019-air-force-looks-for-new-bomb-designs-to-fight-russia-and-china

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