9 juillet 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Top Defense Execs Ask For Help in Next COVID Stimulus Package

The biggest defense manufacturers in the world warned the Pentagon and OMB of "significant job losses in pivotal states" if Congress doesn't come up with stimulus money to cover unforeseen expenses.

By on July 08, 2020 at 4:16 PM

WASHINGTON: A group of CEOs leading the world's top defense firms sent letters to Pentagon acquisition chief Ellen Lord and and Office of Management and Budget director Russell Vought on Wednesday, citing “significant job losses in pivotal states” if the federal government doesn't step in to assist with COVID-related costs.

Electoral maps have traditionally acted as a tried and tested tool defense contractors use when making pitches to both the Pentagon and Congress, as a way of showing where the jobs sit in different congressional districts.

The letter to Lord was signed by the leaders of Lockheed Martin, General Dynamics, Boeing, Raytheon, and BAE Systems, which represent five of the top seven defense companies in the world. Huntington Ingalls, Textron Inc., and L3Harris Technologies also signed onto the letter, which was obtained by Breaking Defense, requesting the Pentagon's help in pressing for stimulus money in the Senate's next rescue package. The Senate is slated to debate in the coming days.

Lord has previously estimated the Pentagon would have to pay more than “lower double digit billions” to offset costs borne by defense manufacturers in lost work hours, buying PPE equipment and propping up smaller suppliers.

Speaking to reporters at the Pentagon last month, Lord said she's seeing a “three-month slowdown to all programs due to COVID-19,” after the virus shut down defense manufacturing facilities and production lines across the globe.

The vast majority of defense firms have operated at reduced capacity over the past several months, and Lord said the Pentagon continues to see the biggest impacts in the aviation and shipbuilding supply chains.

The CEOs write that US-based supply chains “are simply not able to absorb these significant costs. Without additional funding in the next stimulus package, the resolution of [reimbursement] claims will need to be funded from existing DoD budget topline resources for FY20-22.”

That would cause “significant reductions” in research and procurement budgets, they said, before pivoting to warning about Defense Secretary Mark Esper's top priority: modernizing weapons systems to keep abreast of China and Russia. Placing the burden on the companies to use their own case to meet unplanned emergency costs risks “thwarting the Department's ability to meet the challenges and threats associated with great power competition” they add.

In order to keep the smaller suppliers afloat, companies have pushed contracts forward to give the smaller supplier more work, and in turn, DoD has sped up planned payments to the defense industry, hitting the $2 billion mark in recent weeks.

Speaking at a Brookings Institution event this morning, Lord didn't mention the letter, but talked about moving more production of defense equipment to the United States from overseas. Part of that effort stems from President Trump's “American First” push to build up the domestic manufacturing sector, but Chinese influence in electronic supply chains is also a big concern.

During a visit to the Fincantieri Marinette Marine shipyard in Wisconsin late last month, Trump said “we'll always live by two simple rules: Buy American and hire American.”

Lord phrased the idea differently, saying she prefers to have two sources for equipment, and “we would like one of those, if possible, to be domestic.” That issue has been highlighted in the global pandemic shutdown which wreaked havoc on global supply chains. “We just found that particularly with microelectronics, we have gotten ourselves into a potentially compromised position,” Lord said. “Where we have US intellectual property going offshore for fabrication and packaging leaves us with some vulnerability there. That is unacceptable moving forward.”

During his Wisconsin visit, Trump suggested that one of the considerations for awarding a $795 million contract to the US home of the Italian shipbuilder was its location in a competitive state in the 2020 presidential election. “You notice that's not a supply chain going through China and going through other countries,” he said, adding, “I hear the maneuverability is one of the big factors that you were chosen for the contract. The other is your location in Wisconsin, if you want to know the truth.”

https://breakingdefense.com/2020/07/top-defense-execs-ask-for-help-in-next-covid-stimulus-package

Sur le même sujet

  • Contract Awards by US Department of Defense - November 11, 2019

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

    Contract Awards by US Department of Defense - November 11, 2019

    U.S. TRANSPORTATION COMMAND Seventeen companies have been awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contracts under the Worldwide Airlift Services Program, contracts with an estimated program value of $5,700,000,000: Air Center Helicopters, Burleson, Texas (HTC71120DR005); Berry Aviation Inc., San Marcos, Texas (HTC71120DR006); Bighorn Airways, Sheridan, Wyoming (HTC71120DR007); Careflight Ltd., Northmead, New South Wales, Australia (HTC71120DR009); CHI Aviation, Howell, Michigan (HTC71120DR010); Columbia Helicopters Inc., Aurora, Oregon (HTC71120DR011); Contour Aviation, Smyrna, Tennessee (HTC71120DR012); CSI Aviation Inc., Albuquerque, New Mexico (HTC71120DR013); East Coast Flight Services Inc., Easton, Maryland (HTC71120DR014); Erickson Helicopters Inc., Portland, Oregon (HTC71120DR015); Flightworks Inc., Kennesaw, Georgia (HTC71120DR016); Hillsboro Aviation, Hillsboro, Oregon (HTC71120DR017); Jet Logistics Inc., Charlotte, North Carolina (HTC71120DR018); Mountain Aviation Inc., Broomfield, Colorado (HTC71120DR019); Omni Air Transport, Tulsa, Oklahoma (HTC71120DR020); Phoenix Air Group Inc., Cartersville, Georgia (HTC71120DR021); and Rampart Aviation, Colorado Springs, Colorado (HTC71120DR022). This contract provides worldwide Federal Aviation Regulation (FAR) Part 135 airlift services utilizing fixed and/or rotary wing aircraft to transport Department of Defense (DoD) and other federal agency personnel and cargo for domestic and international shipments. Services shall be provided for DoD and other federal government agencies. Services required include aircrew, ground personnel, supplies, ancillary support services and equipment to perform dedicated and/or ad hoc FAR Part 135 or equivalent Civil Aviation Authority airlift operations (at both military and commercial airports/airfields/landing zones). Operations could include the movement of passengers and cargo (or combination thereof), air ambulance, medical evacuation, sling-load cargo operations, delivery of Class I-X supplies, and U.S. Mail and/or other like services. Work will be performed internationally and domestically, with an expected completion date of Nov. 11, 2024. Ordering may be centralized or decentralized and will be determined at the task order level. Funding is provided by multiple government agencies. The contracting activity is U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois. (Awarded Nov. 7, 2019) NAVY General Dynamics Mission Systems, Scottsdale, Arizona, is awarded a $731,876,547 cost-plus-award-fee and firm-fixed-price indefinite delivery/ indefinite quantity contract for Mobile User Objective System (MUOS) ground system sustainment. MUOS is a narrowband military satellite communications system that supports a worldwide, multiservice population of users, providing modern netcentric communications capabilities while supporting legacy terminals. Fiscal 2020-2029 weapons procurement (Navy); fiscal 2020-2029 research, development, test and evaluation (Navy); and fiscal 2020-2029 operation and maintenance (Navy) funding will be applied to task orders after the contract award. Contract funds will not expire at the end of the current fiscal year. Work will be performed in Scottsdale, Arizona (94%); Wahiawa, Hawaii (2%); San Diego, California (1%); Niscemi, Italy (1%); Chesapeake, Virginia (1%); and Geraldton, Australia (1%). Work is expected to be completed by November 2029. This contract was not competitively procured because it is a sole source acquisition pursuant to the authority of 10 U.S. Code 2304(c)(1); only one responsible source (Federal Acquisition Regulation subpart 6.302-1). The Naval Information Warfare Systems Command, San Diego, California, is the contracting activity (N00039-20-D-0146). L3/Harris Technologies, Clifton, New Jersey, is awarded a $51,852,571 cost-plus-fixed-fee order (N0001920F0394) against a previously issued basic ordering agreement (N00019-16-G-0003). This order procures modifications to the AN/ALQ-214A(V)4 Integrated Defensive Electronic Countermeasures System. This order provides non-recurring engineering to develop, integrate, test and deliver software and firmware as well as all technical data. In addition, this order provides engineering and technical support for test efforts including correction of deficiencies discovered during testing in support of a Foreign Military Sales (FMS) customer. Work will be performed in Clifton, New Jersey, and is expected to be completed in November 2022. FMS funds for $9,000,000 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. BAE Systems Land & Armaments L.P., Sterling Heights, Michigan, is awarded a $27,100,050 modification to exercise an option for a fixed-price-incentive (firm target) contract line item number (CLIN) 4002 portion of a previously awarded contract (M67854-16-C-0006). This modification is for the purchase of other production costs, which includes program management, vehicle tooling, acceptance testing, and transportation, related to the low rate initial production Lot 3A Amphibious Combat Vehicles. Work will be performed in York, Pennsylvania (60%); Aiken, South Carolina (15 %); San Jose, California (15%); Sterling Heights, Michigan (5%); and Stafford, Virginia (5%), and is expected to be completed in January 2022. Fiscal 2020 procurement (Marine Corps) funds for $27,100,050 will be obligated at the time of award and will not expire at the end of the current fiscal year. The contract was based on full and open competition with the solicitation publicized on the Federal Business Opportunities website with five offers received. The option CLIN was included within that contract and is being exercised in accordance with Federal Acquisition Regulation 52.217-7 Option for Increased Quantity-Separately Priced Line Item. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-16-C-0006). Progeny Systems Corp,* Manassas, Virginia, is awarded a $9,653,476 fixed-price-incentive-firm target contract modification to previously awarded contract N00024-19-C-6201 to exercise options for Navy systems support. This effort will award the procurement of Navy equipment. Work will be performed in Manassas, Virginia (50%); and Charleroi, Pennsylvania (50%), and is expected to be completed by August 2021. Fiscal 2019 other procurement (Navy) funding for $9,653,476 will be obligated at time of award and funding will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington Navy Yard, District of Columbia, is the contracting activity. DEFENSE LOGISTICS AGENCY UTS Systems LLC,* Fort Walton Beach, Florida, has been awarded a maximum $200,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for commercial shelters. This is a one-year base contract with three one-year option periods. Location of performance is Florida, with a Nov. 7, 2020, performance completion date. Using military services are Army, Air Force, Navy, and Marine Corps. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1210). DRS Network & Imaging Systems LLC, Melbourne, Florida, has been awarded a maximum $15,751,977 firm-fixed-price contract for 43 separate parts in support of the Direct Support Electrical System Test Set and Next Generation Automated Test System. This contract was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a two-year base contract with one one-year option period. Location of performance is Alabama, with a Nov. 30, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 Army working capital funds. The contracting activity is Defense Logistics Agency Land, Warren, Michigan (SPRDL1-20-C-0005). The Boeing Co., St. Louis, Missouri, has been awarded an estimated $11,318,767 firm-fixed-priced delivery order (SPRPA1-20-F-QM0P) against a five-year basic ordering agreement (SPE4A1-19-G-0013) for aircraft movable canopies. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a five-year, four-month contract with no option periods. Location of performance is Missouri, with a March 20, 2025 performance completion date. Using military service is Navy. Type of appropriation is fiscal 2020 Navy working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. Knox County Association for Remarkable Citizens,** Vincennes, Indiana, has been awarded a maximum $9,351,147 modification (P00008) exercising the second one-year option of a one-year base contract (SPE1C1-18-D-N024) with two one-year option periods for the GEN III, Layer II, Mid-Weight Undershirt. This is a firm-fixed-price contract. Location of performance is Indiana, with a Nov. 12, 2020, performance completion date. Using services are Army and Air Force. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. Meggitt Polymers and Composites, Rockmart, Georgia, has been awarded a maximum $8,623,152 firm-fixed-price delivery order (SPRPA1-20-F-LW00) against a five-year basic ordering agreement (SPE4A1-19-G-0013) for F/A-18 fuel tanks. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in the Federal Acquisition Regulation 6.302-1. Location of performance is Georgia, with a Jan. 31, 2021, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2020 Navy working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. ARMY General Dynamic Land Systems Inc., Sterling Heights, Michigan, was awarded a $34,873,995 hybrid (cost-plus-fixed-fee and firm-fixed-price) contract to procure Improved Fire Control Electronics Units. Bids were solicited via the internet with one received. Work will be performed in Tallahassee, Florida, with an estimated completion date of Sept. 30, 2021. Fiscal 2020 procurement of weapons and tracked combat vehicles, Army funds in the amount of $2,245,559 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-20-F-0060). JSR Inc.,* Schertz, Texas, was awarded a $9,260,232 firm-fixed-price contract for renovation of Buildings 820 and 829. Bids were solicited via the internet with six received. Work will be performed in San Antonio, Texas, with an estimated completion date of May 22, 2021. Fiscal 2020 operations and maintenance funds in the amount of $9,260,232 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-20-C-0004). AIR FORCE Northrop Grumman Systems Corp., Herndon, Virginia, has been awarded a $32,134,563 modification (P00015) to the previously awarded cost-plus-fixed-fee task order FA8204-16-F-0020 for the Strategic Automated Command and Control System Replacement (SACCS-R). This modification is to definitize a change order and award the added scope for the Time Division Multiplexing to Internet Protocol (TDM-IP). This modification provides for TDM-IP to be implemented and develop a hardware solution to meet the OMNI sunset date using serial-to-IP Adapters to convert messages for transport over the Defense Information System Network. Work will be performed at Hill Air Force Base, Utah; Malmstrom AFB, Montana; Minot AFB, North Dakota; and F.E. Warren AFB, Wyoming, and is expected to be completed by July 31, 2023. The total cumulative face value of the contract is $52,706,639. Fiscal 2020 research, development, test and evaluation funds in the amount of $2,440,888 will be obligated at the time of the award. The Air Force Nuclear Weapons Center, Hill AFB, Utah, is the contracting activity. Lockheed Martin Corp., Ft. Worth, Texas, has been awarded a $15,746,610 cost-plus-fixed-fee contract for Universal Armament Interface. This contract provides for system engineering and program management for universal armament interface development. Work will be performed in Ft. Worth, Texas, and is expected to be completed by Nov. 19, 2024. This award is the result of a sole source acquisition. Fiscal 2020 research, development, test and evaluation funds in the amount of $780,000 are being obligated at the time of award. The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. (FA8628-20-C-2266). Anduril Industries Inc., Irvine, California, has been awarded a $12,000,000 firm-fixed-price Small Business Innovative Research (SBIR) contract for Advanced Battle Management System Sensing Network. This contract provides for an Advanced Battle Management System prototype to process vast quantities of data from thousands of sources to be accessible anywhere. Work will be performed at Irvine, California, and is expected to be complete by July 31, 2021. This award is the result of a sole source acquisition, sequential SBIR Phase 2 contract. Fiscal 2019 research and development SBIR funding; and fiscal 2019 research and development Rapid Capability Office funding in the amount of $12,000,000 are being obligated at the time of award. The Air Force Research Lab, Wright Patterson Air Force Base, Ohio, is the contracting activity (FA8650-20-C-9300). Quinn Construction, Rapid City, South Dakota (FA469020D0003); All American Contract Solutions, Rapid City, South Dakota (FA469020D0004); and Pedersen and Rangel, Spearfish, South Dakota (FA469020D0005), have each been awarded a $9,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for a multiple award construction contract (MACC). This contract is a design-build, bid-build construction acquisition based on a general statement of work further defined with each individual task order. Work to be performed under the MACC will be the general construction category, to include maintenance, repair, alteration, mechanical, electrical, heating/air conditioning, demolition, painting, paving, and earthwork as well as industrial/office buildings on Ellsworth Air Force Base, South Dakota, including Military Family Housing. (NOTE: Extent of work to be accomplished under this contract concerning military family housing on Ellsworth AFB does not include normal maintenance, repair, painting heating, air conditioning, some mechanical, etc., which is covered under the Military Family Housing Maintenance contract). Work is to be completed as specified in each individual task order and the contract completion date is June 29, 2021. This award is the result of a competitive solicitation to small business HUB Zones, Service Disabled Veteran Owned Small Business, and concerns in the 8(a) program only and 11 offers were received. Fiscal 2019 operations and maintenance funds in the amount of $500 are being obligated to each contractor at the time of award. The 28th Contracting Squadron, Ellsworth AFB, South Dakota, is the contracting activity. *Small Business **Mandatory source https://www.defense.gov/Newsroom/Contracts/Contract/Article/2012852/source/GovDelivery/

  • DARPA announces researchers to exploit infrared spectrum for understanding 3D scenes

    19 juillet 2021 | International, C4ISR

    DARPA announces researchers to exploit infrared spectrum for understanding 3D scenes

    Washington DC (SPX) Jul 14, 2021 - DARPA has selected four industry and university research teams for the Invisible Headlights program, which seeks to determine if it's possible for autonomous vehicles to navigate in complete darknes

  • Industry readies for key US Army Bradley replacement decision

    22 décembre 2022 | International, Terrestre

    Industry readies for key US Army Bradley replacement decision

    The five teams who competed in the previous phase of the Optionally Manned Fighting Vehicle are evolving to be ready for what's next in 2023.

Toutes les nouvelles