22 décembre 2024 | International, C4ISR, Sécurité
Rspack npm Packages Compromised with Crypto Mining Malware in Supply Chain Attack
Compromised Rspack npm packages exposed 445,000 users weekly to IP tracking and XMRig malware.
9 janvier 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
US government shutdown creating angst for defense contractors
By: Valerie Insinna
WASHINGTON — As the U.S. government shutdown continues into its 18th day, defense firms and industry advocates are beginning to worry that the pause in business could eat into companies' cash flow.
The Defense Department is funded for fiscal 2019, with Congress having passed a spending bill for the new fiscal year in September. That means work on the military's weapons programs continue apace, but many defense companies also hold contracts with agencies that are not currently funded, like the Department of Homeland Security — which includes the Coast Guard as well as Customs and Border Protection — and NASA.
The Aerospace Industries Association, a lobbying group that represents defense and commercial aviation companies, warned that impacts to the aerospace sector extend beyond the 800,000 federal workers who are furloughed or working without pay.
For example, weapons sales and transfers to U.S. allies and partners are stalled as a result of the closure of the departments of State and Commerce, AIA said in a Jan. 8 statement. Research projects at NASA, the Federal Aviation Administration, and National Oceanic and Atmospheric Administration are suspended, “setting back development of game changing technologies.” And meetings between the government and industry have been canceled or delayed.
“Every day the shutdown lasts, the impacts grow and become more difficult and more expensive to fix,” said AIA President and CEO Eric Fanning. “It's time to get these dedicated public servants back to work.”
Tony Moraco, the CEO of government service and information technology firm SAIC, told investors Jan. 7 that the effects of the shutdown are expected to be short term and primarily affecting accounts with NASA, the FAA and the U.S. Department of Agriculture.
Moraco characterized the effect on SAIC and Engility — the latter of which is set to merge with the former this year — as a “modest impact on revenues and potentially cash collection, which we think we can recover — mostly — if this is resolved in the near term.”
But SAIC Chief Financial Officer Charlie Mathis said the government is already behind on payments to the two companies by about $40 million to $50 million.
“If we get through this quickly, they could catch up,” he said, but the shutdown would have to be resolved within a week for the companies to hit their cash-flow goals for their fiscal year ending Jan. 31.
Furthermore, the companies are seeing a hit of about $10 million per week in revenue as the shutdown progresses, and “if it continues, that number could increase,” Mathis said.
The probability of an extended shutdown seems to be rising.
The government shutdown started Dec. 22 amid disagreements between President Donald Trump and Congress over funding for a border wall that would separate the United States and Mexico.
But with Democrats now controlling the House of Representatives, a deal on funding for the wall may take weeks and could propel this shutdown past the 21-day mark of the 1995 shutdown, currently the longest on the books, according to CNN.
Defense contractors will eventually get paid back for work accomplished while the government was shut down, but there could be long-standing consequences.
If the shutdown persists for a protracted amount of time, there could be repercussions for the federal government's recruiting pipeline, as well as the balance of federal employees and contractors, said Byron Callan, an analyst for Capital Alpha Partners.
“How will this shutdown impact the ability of federal agencies impacted by the shut-down to recruit and retain skilled individuals?” he wrote in an emailed analysis of SAIC's investor meeting. “There might be near-term collateral damage if people leave government service, but a 1-3 year factor to consider is how this shutdown and the potential for future ones accelerates reliance on federal service contractors.”
Sur le même sujet
-
-
3 juin 2021 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
Contracts for June 2, 2021
Today
-
21 mai 2020 | International, Terrestre
Army Braces For Post-COVID Cuts: Gen. Murray
“I've heard some people talk about [going] back to a BCA [Budget Control Act] level of funding,” Gen. Murray says, referring to the steep cuts also known as sequestration. “And I've heard some people say that it's even going to be worse than BCA.” By SYDNEY J. FREEDBERG JR.on May 20, 2020 at 1:11 PM WASHINGTON: Over the last two years, the Army has cut or cancelled more than 240 programs to free billions for its 34 top priorities, from hypersonic missiles to new rifles. Some of those 34 may have to die as the economy and budget reel from the COVID-19 pandemic, . “I start off with what Secretary Esper and Secretary McCarthy have said consistently, across DoD: three to five real growth is what we need,” said Gen. Mike Murray, chief of Army Futures Command. “Given what's going on in this country over the last two or three months.... my personal expectation is we're not going to see three to five percent growth. We'll be lucky to see a flat line.” LRPF: Long-Range Precision Fires. NGCV: Next-Generation Combat Vehicle. FVL: Future Vertical Lift. AMD: Air & Missile Defense. SL: Soldier Lethality. SOURCE: US Army. (Click to expand) While the Army is still working on its long-term spending plan for 2022-2026, the future topline is very much in doubt. “I've heard some people talk about [going] back to a BCA [Budget Control Act] level of funding,” Murray told an online AOC conference yesterday, referring to the steep cuts also known as sequestration. “And I've heard some people say that it's even going to be worse than BCA.” “I do think budgets are going to get tighter,” Murray said. “I do think that decisions are going to get harder.” Across its actual and projected budgets for 2020 through 2025, despite a slight drop in its topline, the Army has moved $40 billion from lower-priority programs to the 34 “signature programs.” Murray's Futures Command runs 31 of the 34, grouped in six portfolios: long-range rocket and cannon artillery is No. 1, followed by new armored vehicles, Future Vertical Lift aircraft, an upgraded battlefield network, air & missile defense, and soldier gear. Meanwhile, three most technologically demanding programs – including hypersonics and high-energy lasers – are handled by the independent Rapid Capabilities & Critical Technology Office. “We're prioritizing what I call the 31 plus 3,” Murray said. “We have fully funded those priorities in the program at the expense of a lot of other things.” The XM1299 Extended Range Cannon Artillery (ERCA) howitzer in an earlier test shot last year. But Army leaders have already warned that the Big Six will need more funding as they move from concept to prototype to mass production. Even a flat budget topline will be tight — and COVID makes flat the best-scare scenario. When and if the budget shrinks, Murray warned, “I do think we're going to have to make some tough decisions.” Hypothetically, he said, the choice may come down to something like, “Is it 31 plus three, or is it 24 plus two?” Considering the agonies the Army went through in its multiple rounds of “night court” cuts to find money for the 34 priority programs in the first place, cancelling any of them will be painful – but not impossible. Yes, the Army needs capabilities from each of its six modernization portfolios to work together in what's called Multi-Domain Operations against a future foe like Russia or China. Long-range precision firepower blasts holes in enemy defenses for aircraft, armor and infantry to advance; then they hunt out enemies too well-entrenched or mobile for artillery to destroy. Meanwhile air and missile defense protects the entire force, and the network passes intelligence and targeting data. But each of the Big Six includes multiple programs, and the Army has never expected all 34 to succeed. That's a crucial difference from the service's last major modernization drive, the Future Combat Systems cancelled in 2009, which depended on each of its 20 component technologies working as planned. Army slide showing the elements of the (later canceled) Future Combat System “Is there room for failures? Yes,” Murray told reporters at an Association of the US Army conference last year. “This concept does not count on any specific piece of capability.” That doesn't make cuts painless or easy, however. “Our priorities are our priorities for a reason,” Murray said yesterday. The Army's current weapons, from missiles to tanks to helicopters, largely entered service in the Reagan era. They've been much upgraded since, but there's only so much add-on armor, souped-up horsepower, and advanced electronics a 40-year chassis can take. The Army says it needs new weapons to take it into the next 40 years. “The kids running around on armored vehicles today are riding... fundamentally the same vehicles I rode around in as a company commander, way back when,” Murray said. “My now five-year-old granddaughter [lives] up the road at Fort Hood, Texas... I've got eight grandchildren, and out of all of them, I have absolutely no doubt that she is my infantry company commander wearing an Airborne Ranger tab at some point in the future. So that makes it personal for me.” https://breakingdefense.com/2020/05/army-braces-for-post-covid-cuts-gen-murray