Opening Statement by CISA Director Jen Easterly | CISA

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

  COVID-19 Stimulus Includes Aerospace And Defense Industry Assistance

  Jen DiMascio President Donald Trump signed a $2.2 trillion stimulus bill into law March 27, aimed at shielding the U.S. economy from damage done by COVID-19-related closures, and that will also provide assistance to the aerospace and defense industry. In addition to giving businesses numerous incentives to retain employees, the act offers $17 billion in loans and loan guarantees to national security contractors such as Boeing, which had appealed to Congress for $60 billion in relief for itself and its suppliers. The Coronavirus Aid, Relief and Economic Security Act does attach strings to the loans, restricting companies that accept the money from share buybacks, making increases to executive compensation and instituting layoffs. In a statement issued March 26, Boeing said its CEO and board chairman are giving up their pay, and that the company is extending its dividend and will pause share repurchasing “until further notice.” The law also provides $10.5 billion in new defense spending – primarily for personnel and operations – along with $2.5 billion aimed at maintaining the industrial base. The act “confirms that there is no risk that fiscal 2020 and prior appropriations would be raided to pay for pandemic response costs,” said Byron Callan of Capital Alpha Partners in a note to investors. But he cautioned that analysts and planners have to factor the changes made by the new law when looking toward budgets for fiscal 2021 and beyond. Another stimulus package is likely to follow in April or May, which may include additional funding for defense, Callan added. Industry groups cheered passage of the act. “We encourage federal government officials and lawmakers to continue to support the aerospace and defense industry through the duration of the pandemic and to ensure sector stability during the economic recovery phase,” said the American Institute of Aeronautics and Astronautics. “The aerospace and defense contribution to the economy on the other side of the COVID-19 crisis will be crucial for restarting and building the economic engine to its pre-crisis momentum.” The legislation offers “tools and incentives” that will provide support to many small businesses and the supply chain, said Eric Fanning, president and CEO of the Aerospace Industries Association. And David Berteau, president of the Professional Services Council, which represents federal government contractors, is looking to the future, saying that as the impact of the pandemic continues, the council will focus on keeping the government working, keeping contractors working and ensuring that contractors and their employees are paid. Lockheed Martin President and CEO Marillyn Hewson made a related announcement about the company's plan to help with COVID-19 relief, saying it will advance $50 million to small- and medium-sized suppliers, donate $10 million to non-profit COVID-19 relief organizations and set aside a $6.5 million relief fund for its own employees. The company will also offer engineering and technical assistance to government officials, and donate corporate aircraft and vehicles for logistical support, facilities for medical supply storage, distribution and COVID-19 testing. “Finally, during this time of economic uncertainty, we will continue our planned recruiting and hiring,” Hewson said. “Given the requirement for social distancing, Lockheed Martin will deploy virtual technology and other techniques to sustain our hiring activity during this crisis period.” https://aviationweek.com/aerospace/covid-19-stimulus-includes-aerospace-defense-industry-assistance

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  6 novembre 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

  How COVID-19 Is Affecting The Defense Industrial Base

  Jen DiMascio The COVID-19 pandemic has exacerbated some of the risks that have always existed in the defense industrial base. Although government assistance and a robust Pentagon budget have helped offset initial trials, more challenges are looming. One of the biggest risks to the defense industrial base is that some companies serving the military are too heavily leveraged toward the commercial sector or too reliant on international companies, financial analysts told Aviation Week's DefenseChain Conference. “Some of these places are two weeks from bankruptcy,” says Chris Celtruda, managing principal at Destiny Equity Partners, says. Suppliers are beginning to falter because of a combination of factors, including the need to comply with cybersecurity standards, the pressure that prime contractors such as Boeing and Lockheed Martin have applied to them and their reliance on commercial business. A prime example is the recent bankruptcy of Impresa Aerospace, a Wichita-based company that made parts using computer numerical control machines as well as sheet metal parts and assemblies for Boeing and Lockheed military aircraft but was highly dependent on its work for the commercial Boeing 737 MAX. The U.S. federal Paycheck Protection Program helped delay some business failures, but others are inevitable, says Rick Nagel, managing partner of Acorn Growth. “The Impresa bankruptcy is an example of a lot more insolvencies we may see,” he adds. Weakness among niche companies could pose a problem for the Defense Department in the future. “I'm always amazed at how many critical systems have multiple single points of failure on major programs,” he says. At the Pentagon, officials have been working to keep essential suppliers afloat and to keep production moving through its sprawling international industrial base. For the U.S. Army, that has meant initial disruptions to Apache fuselage production in India and to the flow of generators from Mexico. The Pentagon and the State Department helped ease the stoppage, but the incident has caused them to review the full range of risks to its international supply chain. “I think that we can navigate through this, though it's certainly always going to be complex in today's global economy,” says Patrick Mason, deputy program executive officer for U.S. Army Aviation, adding that he is in the position of putting pressure on vendors to reduce cost, particularly to provide savings on multiyear aircraft contracts. One trend emerging along with the pandemic is a movement toward onshoring or reshoring overseas business for reasons of cybersecurity and the protection of the U.S. industrial base. As that happens, and as the commercial aviation market sags, Raanan Horowitz, president and CEO of Elbit Systems of America sees opportunity. “We are trying to position ourselves around some of those discontinuities,” Horowitz says, adding that the company likes going after opportunities that are not necessarily glitzy but hold value. “We are intensifying efforts toward looking at licensing, taking over orphan product lines and positioning ourselves to be part of the long-term solution.” Horowitz says Elbit is investing in U.S. infrastructure to capture new business. Industry officials see broad support for bringing more of the defense supply chain back to the U.S. The shift stems in part from the COVID-19-related economic downturn but also from longstanding concerns about China. In the fiscal 2020 National Defense Authorization Act, Congress passed restrictions on contracting with companies that use Chinese telecommunications equipment. Though companies first look for the best value, the threat posed by Chinese parts that either do not work or could transmit classified information back to China is an ongoing concern, says John Luddy, vice president for national security policy at the Aerospace Industries Association. “The concept of reshoring of supplies to better connect our allies and friends, both from a production standpoint and from an operational functionality and alliance standpoint, I think the volume is getting turned up on that a little bit,” he says. “There's also a strong impetus in Congress to look at exactly how vulnerable we are. That's going to be a more intense discussion in the year to come than it has been.” And that trend toward reshoring could have unintended consequences, warns Steve Grundman, founder and principal of Grundman Advisory. “I'm genuinely concerned that benign moves to secure our supply chain to prevent nefarious supplies and code [coming] into particularly our defense supply chain or commercial aerospace supply chain could slip very easily into protectionism,” Grundman says. “If you want to really put pressure on the defense budget, ask the defense industry to reshore the supply chain. https://aviationweek.com/defense-space/supply-chain/how-covid-19-affecting-defense-industrial-base

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  9 février 2021 | International, Aérospatial

  NAVAIR Orders Five VH-92 Presidential Helicopters from Sikorsky

  Posted on February 8, 2021 by Richard R. Burgess, Senior Editor ARLINGTON, Va. — Naval Air Systems Command has awarded Sikorsky a third production contract to build five VH-92A helicopters for the U.S. Marine Corps. The Naval Air Systems Command awarded Sikorsky Aircraft Corp. — a Lockheed Martin company — a $478.6 million firm-fixe-price contract modification to build five Low-Rate Initial Production Lot III VH-92As, according to a Feb. 5 Defense Department announcement. The award also includes orders for “interim contractor support, two cabin interior reconfiguration kits, support equipment, initial spares and system parts replenishment,” the release said. Work on the contract is expected to be completed by December 2023. The VH-92A was selected in 2014 to provide transport for the president of the United States, the vice president and other high-level government officials. The helicopter will replace the 19 VH-3D Sea King and VH-60N “White Hawk” helicopters operated by Marine Helicopter Squadron One. The Corps plans to acquire a total of 23 VH-92As, 21 for operations and two for testing. The May 2014 engineering and manufacturing development contract procured two test aircraft and four production aircraft. Six VH-92As were ordered in June 2019, followed by six more in February 2020. The presidential helicopter fleet is operated by Marine Helicopter Squadron One, based at Marine Corps Air Station Quantico, Virginia, with a detachment at Joint Base Anacostia-Bolling in Washington. “Government testing to validate system performance and prepare for Initial Operational Test and Evaluation is progressing on schedule and will support an Initial Operational Capability (IOC) planned for July 2021,” a Navy spokeswoman said. “The VH-92A will enter service post IOC at the determination of the White House Military Office.” https://seapowermagazine.org/navair-orders-five-vh-92-presidential-helicopters-from-sikorsky/