5 août 2020 | International, Terrestre
By: Aaron Mehta
WASHINGTON — The United States is developing new options for arms customers as a way to ensure allies and partners don't drop planned procurements as the world economy remains in shock from the impacts of COVID 19.
Among the options, according to outgoing Defense Security Cooperation Agency head Lt. Gen. Charles Hooper, are allowing foreign countries to finance arms procurement through U.S. bank loans and altering existing payment schedules to stretch the costs over time.
“The bottom line here is, we are willing to work with our allies and partners, when they raise the challenges that they have, to find ways for them to continue to buy American and to ensure that they can pay for the equipment along a payment schedule that reflects their own economic conditions,” Hooper said.
During an exclusive exit interview with Defense News, Hooper declined to say which countries have already approached his agency about economic impact from the disease, but said that there are “certainly” customer nations that have reached out.
“There are partners that, we're already seeing that they are having challenges. So we're standing ready to work with them. As soon as we can gain an appreciation and the understanding of the challenges, we can find ways to help them,” Hooper said.
Hooper talked with Defense News two weeks before his Aug. 3 retirement. He is succeeded by Heidi Grant, the head of the Defense Security Technology Administration, a move that marks the first time a civilian has led the office since a previous agency was recognized into the current DSCA structure in 1998. The general expressed no concerns over that move, in large part, he said, because of Grant, a fixture in the international security cooperation world.
Grant will have to hit the ground running, given the potential impact from COVID on the world economies. The good news, Hooper said, is that by March, DSCA had concluded that the global economy would be hurt by the disease and set up an interagency working group, called the Operations Planning Group, to study program-level impacts from global trends and develop solutions.
The first step Hooper's team took was to revise the collection process of foreign payment in order to make them “a bit more flexible, to accommodate those partners that may be having some economic difficulties or may have reprioritized their budgets towards for example, economic recovery and away from defense.”
Those options include delaying payments on planned procurements to future years, creating new payment plans for ongoing procurement efforts, and returning funds currently on deposit with the United States to the customer nations as well as new financing strategies.
“One of the things we did is we are allowing our partners to draw on standby letters of credit from foreign banks operating in the United States, according to U.S. banking rules,” Hooper explained. “That offers a nation an opportunity to draw, for example, in that case, a standby letter of credit on one of their banks that operates in the United States, under United States banking rules, which ensures that there's no fiduciary risk to the United States.”
DSCA officials had been considering adding such an option for some time, but the economic downturn pushed the agency to start offering it for customer nations, Hooper added. Lucie Béraud-Sudreau, director of the Arms and Military Expenditure Programme at the Stockholm International Peace Research Institute, said that option sounds different from funding plans that have existed for some time in Europe, where specific entities in countries are responsible for guaranteeing arms-recipient states' loans thanks to the state treasury.
“There are a number of economic factors globally, that we anticipate will likely have an impact on country's abilities to move forward,” Hooper said. “Obviously, energy prices are lower, and those countries all over the world that specialize in energy are going to see a fall in revenue. We see countries that, as a result of the pandemic, are having to shift funds from their defense budgets to more domestic missions like economic recovery and other things.”
In addition to oil-reliant nations in the Middle East, Béraud-Sudreau said to watch the Pacific region, where “many countries have already decided to cut their military spending for this year, and planning decreases for 2021.” Indonesia, Thailand, South Korea, and the Philippines are among the nations that have already announced plans to cut defense spending, while Singapore is seeing delays in weapon deliveries due to supply chain issues.
“If there are limited orders in 2020-2021, there will be repercussions later on, as these companies work on long-term projects. Hence the pressure, on both sides of the Atlantic, for the defense sector to be part of economic recovery packages and high levels of military expenditure,” she said.
Over the course of his time at DSCA, Hooper oversaw almost 18,300 Foreign Military Sales actions, including 5,800 new agreements and various amendments and modifications to existing agreements, according to agency figures. He reduced three different surcharges on customers, saving customers millions of dollars as well. Also, timelines shrunk, with DSCA offering 50 percent of all new FMS cases that flow through the process to partner nations in 49 days or less by Hooper's exit.
And while Hooper did not want to preview what weapon sales totals for fiscal 2020 will be, he did say that the United States remains “on a very positive trajectory... We remain the global partner of choice. And I'm very optimistic that we're going to continue to see positive trends in our foreign military sales this year and in the years to come.”
10 juin 2022 | International, Terrestre
The House advanced legislation on Thursday that would require the Defense Department to set up a pilot program that would transition entire nontactical vehicle fleets at certain installations to electric vehicles.
30 janvier 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
ARMY Syracuse Research Corp., Syracuse, New York, was awarded a $108,209,591 cost-plus-fixed-fee contract for Vehicle Integrated Defeat System. Bids were solicited via the internet with one received. Work will be performed in Syracuse, New York, with an estimated completion date of Jan. 30, 2020. Fiscal 2019 research, development, test and evaluation; operations and maintenance, Army; and other procurement, Army funds in the combined amount of $53,022,699 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-19-C-0005). NAVY The Boeing Co., St. Louis, Missouri, is awarded a $56,755,269 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract that provides program management support as well as engineering and integrated logistics support by the original equipment manufacturer for the post-production support phase of the T-45 aircraft lifecycle. This contract includes special tooling and test equipment, data accessibility and obsolescence identification, and resolution in addition to field services support that will provide subject matter expertise in the areas of environmental control systems, cockpit pressurization and On-Board Oxygen Generation Systems integration. Work will be performed in St. Louis, Missouri (96.1 percent); Meridian, Mississippi (1.3 percent); Kingsville, Texas (1.3 percent); and Pensacola, Florida (1.3 percent), and is expected to be completed in January 2022. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was not competitively procured pursuant to 10 U.S. Code 2304(c)(1). The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity (N61340-19-D-0003). Lockheed Martin Corp., Fort Worth, Texas, is awarded $31,335,203 for modification P00044 to a previously awarded cost-plus-incentive fee, cost-plus-fixed-fee contract (N00019-16-C-0004) for sustainment services for F-35 Lightning II low-rate initial production Lot X aircraft for the government of Australia. Work will be performed in Williamtown, Australia, and is expected to be completed in January 2021. Non-U.S. Department of Defense participant funds in the amount of $31,335,203 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Lockheed Martin Missiles and Fire Control, Archbald, Pennsylvania, is awarded $16,089,088 for modification P00005 to a previously awarded firm-fixed-price contract (N00019-17-C-0022). This modification provides for the procurement of 4,320 Laser Guided Training Rounds BDU-59B/B. Work will be performed in Archbald, Pennsylvania (45 percent); Marlton, New Jersey (10 percent); Vaudreuil-Dorion, Canada (6.5 percent); Rochester, New York (5.5 percent); Westford, Massachusetts (3 percent); Plainville, Connecticut (2.75 percent); Joplin, Missouri (2.75 percent); Hauppage, New York (1.5 percent); Quakertown, Pennsylvania (1.5 percent); San Jose, California (1.5 percent); Laconia, New Hampshire (1.5 percent); Dunedin, Florida (1 percent); Clifton, New Jersey (1 percent); Londonderry, New Hampshire (1 percent); Canton, Pennsylvania (1 percent); Honesdale, Pennsylvania (1 percent); Mount Laurel, New Jersey (1 percent); Medford, New Jersey (1 percent); Irvine, California (.5 percent); and various locations within the continental U.S. (11 percent). Work is expected to be completed in December 2021. Fiscal 2018 and 2019 procurement of ammunition (Navy and Marine Corps) funds in the amount of $16,089,088 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center, Lakehurst, New Jersey, is the contracting activity. Lockheed Martin Rotary and Mission Systems, Moorestown, New Jersey, is awarded a $10,930,390 fixed-price incentive (firm target) modification to previously awarded contract N00024-14-C-5106 to exercise options for AEGIS Ballistic Missile Defense (BMD) 4.0.2 equipment for Shipset 23 and BMD spares. Work will be performed in Moorestown, New Jersey (54 percent); and Clearwater, Florida (46 percent), and is expected to be complete by November 2020. Fiscal 2019 Defense Wide Procurement funding in the amount of $10,339,481; and fiscal 2013 shipbuilding and conversion (Navy) funding in the amount of $590,909 will be obligated at time of award, and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. General Dynamics Electric Boat Corp., Groton, Connecticut, is awarded a $9,998,560 cost-plus-fixed-fee modification to previously-awarded contract N00024-14-C-2104 for digital voltage regulator system material. The contractor will be providing five ship sets of material and one ship set ready for ship installation. Work will be performed in Groton, Connecticut, and is expected to be completed by December 2020. Fiscal 2019 other procurement (Navy) funding in the amount of $9,998,560 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding, Groton, Connecticut, is the contracting activity. AIR FORCE Multibeam Corp., Santa Clara, California, has been awarded a $22,900,000 firm-fixed-price modification to contract FA9453-17-C-0015 for the Electron-Beam Direct Write subsystems. This contract is to continue demonstration of the advanced lithography tool for government integrated circuits developed under the basic contract. Work will be performed in Santa Clara, California, and is expected to be completed May 19, 2021. Fiscal 2017 Defense Production Act Title III funds in the amount of $22,900,000 are being obligated at the time of award. Total cumulative face value of the contract is $32,300,000. Air Force Research Laboratory, Kirtland Air Force Base, New Mexico, is the contracting activity. U.S. TRANSPORTATION COMMAND SeaCube Container Leasing International, Woodcliff Lake, New Jersey (HTC71119DR008); Textainer Equipment Management, San Francisco, California (HTC71119DR009); and Triton Container International, Hamilton, Bermuda (HTC71119DR010), have been awarded indefinite-delivery/indefinite-quantity, firm-fixed-price contracts for leasing and transportation of intermodal container equipment, in the amount of $16,227,246 (estimated) for the base year. Performance is from March 1, 2019, to Feb. 29, 2020. Work will be performed at multiple continental U.S. and outside continental U.S. locations. The contracts utilize fiscal 2019 and fiscal 2020 operations and maintenance funding. The U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. Schuyler Line Navigation Co. LLC, Annapolis, Maryland, has been awarded a fixed-price with economic price adjustment contract (HTC71119DW001) in the amount of $7,101,934. The contract provides ocean liner service between Jacksonville/Blount Island, Florida, and Naval Station Guantanamo Bay, Cuba, to the Military Surface Deployment and Distribution Command. The contract base period of performance is from March 1, 2019, to Feb. 29, 2020. Fiscal 2019 Transportation Working Capital Funds were obligated at award. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1742153/source/GovDelivery/
29 mai 2020 | International, Aérospatial
Rome May 28, 2020 - Leonardo's U.S. subsidiary, Selex ES Inc., developer of surveillance, en route navigation, and precision approach and landing systems, was recently awarded a contract by the Federal Aviation Administration (FAA) to continue to build USA's Distance Measuring Equipment (DME). The contract has a one-year base period and two one-year option periods. Along with the previous FAA Selex ES DME contract; Selex ES expects to provide more than 200 DMEs to the National Airspace (NAS). Work will be performed in Overland Park, Kansas. The scope of the contract includes program management, systems engineering, design and development, system test and evaluation, training, production, Interim Contractor Depot Logistics Support (ICDLS), and site implementation. The DME system will help the FAA increase operational availability and performance of the NAS, supporting common and consistent interface requirements, and providing a modern system that complies with current FAA security standards. Selex ES is the world's premiere vendor of DMEs, having delivered over 1200 DME systems over the last 25 years to key customers around the globe including FAA, DFS in Germany, Skeyes in Belgium, EANA in Argentina, and ANWS in Taiwan. The company is proud to be a trusted supplier to the FAA and grateful for the continued confidence that FAA has in its team and technology. About Leonardo and its U.S. subsidiary, Selex ES Inc. Leonardo is a global player in the high-tech sectors and a major operator worldwide in the Aerospace, Defense and Security sectors. Headquartered in Italy, Leonardo employs over 49,000 people in over 20 countries with offices and industrial plants across five continents. Leonardo's U.S. subsidiary, Selex ES Inc., is headquartered in Overland Park, Kansas, USA and is a leading supplier of surveillance, en route navigation, precision approach, and systems to Air Navigation Service Providers, airport authorities, militaries, government agencies, and commercial and industrial operators. In the heartland of the United States, Selex ES has designed, produced, delivered, and supported ground-based radio navigation aids and surveillance solutions for over 30 years on all seven continents. Selex ES provides complete design, development, production, test, installation, training, integration, maintenance, and customer service. View source version on Leonardo: https://www.leonardocompany.com/en/press-release-detail/-/detail/28-05-2020-leonardos-u-s-subsidiary-selex-es-inc-awarded-a-contract-for-faas-distance-measuring-equipment-system