18 août 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
Reshoring the defense supply chain may reduce national security risks, but a new report detailing a heavy dependency on goods and services from foreign countries like China shows reshoring may be easier said than done.
Researchers at Govini, a decision science company supporting the defense industry, analyzed data from over 1,000 Defense Department vendors across 100 industries to show how supply chain reliance on products from foreign countries has increased over the past decade. According to the survey, the number of Chinese suppliers in DOD's base increased by a total of 420% since 2010.
For cyber and information technology, two statistics stick out. The share of companies based in foreign nations in the supply chain grew the most in the packaged software and IT services between 2010 and 2019. Companies based in foreign countries made up 3% of the packaged software supplier base in 2010. That number rose to 7% in 2019. The numbers are similar for IT services: Companies based in foreign countries made up 3% of the IT services supplier base in 2010 and 7% in 2019.
Tara Murphy Dougherty, CEO of Govini, told Nextgov increasing adoption of IT infrastructure is critical for the Defense Department, particularly as COVID-19 forced the agency's workforce into mass telework. But that means it is imperative DOD addresses supply chain concerns for information and communications technology.
Murphy Dougherty said these two investment areas are only going to continue to grow, which means the department needs to act to clearly define its stance on IT supply chain security.
“What are you doing, other than responding to some of the legislation that we've seen come out of the Hill mandating investigation of this?” she said. “It would be great to see more options.”
A key mandate from Congress related to supply chain was supposed to take effect on an interim basis Thursday. Section 889 (a)(1)(b) of the 2019 National Defense Authorization Act bans agencies from contracting with companies that do business with five Chinese firms, including Huawei and ZTE. But according to a Defense News report, the Pentagon received a temporary waiver from the Director of National Intelligence pushing back the compliance date until September 30.
Defense Undersecretary for Acquisitions and Sustainment Ellen Lord said at a Professional Services Council webinar Thursday she needs feedback from industry on what's working and what's not when it comes to implementing the rule.
“I know we're all aligned in that we do not want adversaries in our supply chain. We don't want further theft of intellectual property. We don't want these nefarious actions going on,” Lord said. “But how do we get the language into the contracts, how do we practice the behaviors of ensuring we understand what we have in our supply chains for telecommunications equipment? What we need to do is continue to hear from you.”
It's not yet clear how the brief deadline extension will affect the implementation process. Regardless, visibility down the supply chain remains a key concern. Murphy Dougherty said there needs to be more transparency in supply chains if the industry is going to address security risks.
The Govini report focuses on firms in the mid-tier of the supply chain, with less visibility than a large company like Boeing. For companies further down the supply chain, U.S.-based companies make up less than half of the supplier base, according to the report. Chinese companies make up anywhere from 5% to 9% of the supplier base in the middle to lower ranges of the supply chain.
Murphy Dougherty said it's going to take time to see changes in the data. How to address the industrial base at a structural level remains an unanswered question, she said, and collaboration between DOD and industry will be critical in coming up with a new system to ensure supply chain security.
“It begs the question of do we have the right models in place today and the right framework for the department to get all of the goodness and partnership it possibly can out of the American commercial economy,” Murphy Dougherty said.
18 avril 2024 | International, Terrestre
AV’s MOSA-enabled P550 UAS is purpose built for long range reconnaissance missions and features advanced AI and autonomy, maximum payload versatility, and rapid employment capabilities.
9 juillet 2022 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
DÉFENSE Le PDG de Leonardo demande à la Banque européenne d'investissement de permettre le financement des projets militaires Le PDG de Leonardo, Alessandro Profumo, a appelé à une révision de la politique de prêt de la Banque européenne d'investissement (BEI) pour lui permettre de financer des projets militaires à la suite de l'invasion de l'Ukraine par la Russie. Il a notamment déclaré que le conflit avait « considérablement modifié la position de nombreux pays européens à l'égard du secteur de la Défense » et étayé l'idée selon laquelle « il n'y a pas de durabilité sans sécurité ». La BEI, l'organisme de prêt de l'UE détenu par les États membres, sert à financer des projets qui favorisent la réalisation des objectifs de l'Union, mais elle n'est pas autorisée à investir dans des activités ou des actifs de Défense essentiels tels que les munitions et les armes. La banque a refusé de commenter spécifiquement les remarques du dirigeant, mais a souligné qu'elle joue un rôle dans le soutien de l'industrie au sens large, notamment dans les projets de recherche et de développement qui ont une approche à double usage. « Un changement dans les règles de la BEI sur la manière de financer le secteur de la défense serait très pertinent en tant que créateur de tendances pour le secteur financier », estime Alessandro Profumo dans une interview au Financial Times. En mars, la banque avait accepté de soutenir le financement d'une initiative stratégique européenne de sécurité visant à renforcer les investissements en Recherche et Développement à double usage dans des domaines tels que les infrastructures et les technologies de sécurité civile. Les propositions de l'UE de l'année dernière, sur ce qui constitue une finance socialement durable, qui auraient qualifié l'industrie de la Défense de socialement nuisible, ont depuis été abandonnées. Le rapport final est « meilleur qu'il ne l'était », mais « pas encore sur la table » analyse le PDG de Leonardo. L'accès au financement est particulièrement critique pour les petites entreprises de la chaîne d'approvisionnement du secteur, qui sont cruciales pour l'innovation. Financial Times du 5 juillet
30 juin 2020 | International, Aérospatial
By: Mike Yeo MELBOURNE, Australia – The fallout from the global COVID-19 pandemic delayed the deliveries of new submarines and helicopters from Europe and the United States to Singapore. Deliveries of its F-35B fifth-generation stealth fighters to remain on track, however. Speaking to media via video conference during Singapore's annual armed forces day, Defense Minister Ng Eng Hen said that the delivery of the first of four Type 218SG submarines from Germany's ThyssenKrupp Marine Systems, which are also known as the Invincible class, will be pushed back from 2021 to sometime in 2022. Similarly, Ng confirmed that initial deliveries of the Airbus Helicopters H225M medium-lift and Boeing CH-47F Chinook heavylift helicopters for the Republic of Singapore Air Force or RSAF, which were due to start at the end of this year, will now take place in early 2021 instead. He attributed the delays to disruptions in global supply chains arising from the pandemic, although he expects the delivery of the first four of up to 12 Lockheed Martin F-35B Lightning II Joint Strike Fighters to be on track for a 2026 start. Training spooling up Ng also said that military training is getting back on track, after the suspension of basic training for the conscript army with enlistees sent home. Basic military training resumed in late May, and overseas military training is also expected to restart soon. This includes the participation in the upcoming Rim of the Pacific, or RIMPAC multinational naval exercise, which is due to take place in Hawaii in August. Singapore will send a frigate to the exercise, which will be taking place amid precautions and restrictions to limit to potential spread of COVID-19. The RSAF is also in discussions with Australia about resuming training. The two countries have agreements in place for Singaporean military aircraft to conduct unilateral training in northern Australia, utilizing the vast airspace, good weather and training ranges that are not available in Singapore. https://www.defensenews.com/coronavirus/2020/06/29/sub-helo-deliveries-to-singapore-delayed-by-pandemic