14 juillet 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
It's the first time a defense official has put a specific price tag on DoD's COVID relief efforts.
The Pentagon needs Congress to approve “around $10 billion” to cover defense contractors' coronavirus-related expenses, a top defense official said Monday.
Alan Shaffer, deputy defense undersecretary for acquisition and sustainment, became the first Defense Department official to put a price tag on the relief effort.
“If there is another supplemental or stimulus package for realistic economic adjustment, we could be looking at somewhere around $10 billion in additional program costs,” Shaffer said during a taped appearance on the Government Matters television show that aired Monday afternoon.
Also on Monday, White House economic advisor Larry Kudlow told Fox Business that the Trump administration is putting together a fourth coronavirus stimulus package.
The CARES Act allows defense companies to recoup money they used to keep employees working amid the pandemic. While Congress authorized these reimbursements, they did not appropriate the funding.
Until now, Pentagon officials have been vague in saying how much money was needed to cover the costs. During a June 11 House Armed Services Committee hearing, Ellen Lord, the defense undersecretary for acquisition and sustainment, said the Defense Department would request in the “lower end” of “tens of billions of dollars.”
Last week, defense analyst Jim McAleese estimated that between $12 billion and $15 billion would be needed to cover companies' coronavirus expenses. If Congress does not appropriate the funds, the Pentagon would likely cut weapons buying and research funding to cover the costs, the CEOs of most major U.S. defense firms wrote in a July 7 letter to White House Office of Management and Budget Director Russell Vought.
Factory shutdowns and trouble receiving parts from suppliers in the U.S. and globally have caused manufacturing disruptions across weapons programs. The current spike in COVID-19 cases in the southern United States in Florida, Texas, and Arizona, states with large defense manufacturing hubs, further disruptions to weapons projects are possible.
“We're going to be at this for a while,” Schaffer said. “The exact number of months — your crystal ball is as good as mine.”
Pentagon officials have been closely monitoring the aviation sector, where a substantial drop in commercial airline passenger travel has prompted airlines to ground planes and cancel new aircraft orders. In recent weeks, the Pentagon has awarded more than $400 million in bailouts to aviation, shipbuilding, space and even textile companies that manufacture military uniforms. Shaffer in the interview that aired Monday said more bailouts through so-called Defense Production Act Title 3 might be necessary.
“I think we're going to have to look at what we can do through Defense Production Act title 3 [and] through other mechanisms to make sure that we remain viable in the aircraft [industry],” he said. “We've seen some projections from the industry that suggest the aircraft industry will take two to three years to rebound.”
While Shaffer said “shipbuilding should be OK,” he said, “we're watching the space industrial sector very closely because we've seen a contraction in the commercial side for space launch.”
Major U.S. defense firms are scheduled to report second-quarter earnings before the end of the month.
17 novembre 2024 | International, Terrestre
Production of the vehicles will utilize local industry capabilities in Latvia, including Patria’s armoured vehicle production facility in Valmiera, opened in May 2024
8 avril 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
Sean Broderick WASHINGTON—The Trump Administration has asked Congress for an additional $250 billion in small-business payroll loan funding, providing more cash to the coronavirus pandemic emergency funding program that many small aerospace suppliers are expected to tap. U.S. Treasury Secretary Steve Mnuchin tweeted the news April 7, confirming that, “at the direction of President Trump,” he has asked Democrat and Republican leaders in both the House of Representatives and Senate for more Paycheck Protection Program (PPP) funding “to make sure small businesses get the money they need!” The PPP, part of the March 27 Coronavirus Aid, Relief, and Economic Security (CARES) Act, was set up to quickly get funds to eligible businesses to cover eight weeks of payroll costs as well as most rent, utility and mortgage-interest expenses. Companies can apply for a one-time PPP loan of up to 2.5 times their average monthly 2019 payroll, up to a maximum $10 million. So long as 75% of the funds are used for payroll costs, the loans do not have to be repaid, making them de facto grants. The CARES Act allocates $349 billion to the program, but early popularly suggests that more funding may be needed to meet demand. The Small Business Administration (SBA) processed more than $70 billion in loans in PPP's first three days after the program opened April 3, though it did not say how much of that has been funded. Some 250,000 small businesses, out of an estimated 30 million, have applied for PPP funds. Mnuchin said he has spoken with Congressional leaders and is confident that he has bipartisan buy-in. “We look forward to the Senate passing that on [April 9], and the House passing that on [April 10]” Mnuchin told reporters during an April 7 media briefing. Additional funding could be approved quickly. Senate Majority Leader Mitch McConnell (R-Kentucky) said in a statement that he would work with Mnuchin and fellow Senate leaders to approve further funding within days. House Democrats are already working on a larger bill, which leader Nancy Pelosi calls CARES 2, that includes more PPP funding. PPP loan applications, submitted through the SBA Small Business Administration (SBA) and funded by participating lenders, began rushing in as soon as the program opened April 3. SBA Mnuchin said April 7 that more than 3,000 lenders are onboard, with additional institutions expected to participate. The program experienced some early hiccups, due in part to its scale and how quickly it has come together. CARES became law on March 27, and interim rules on how PPP would work were issued late April 2, just hours before applications were set to start. The PPP's broad applicability, lack of requirements for guarantees or other collateral, and de facto grant properties—the loans become forgivable if guidance is followed—have made it a catch-all for many small businesses. The general SBA limit for a small business is 500 employees, but it is based on staff or revenue limits set in the North American Industry Classification System. Many aviation businesses, aircraft and engine parts makers and maintenance providers, have limits above 500 employees. The PPP's potential reach and theoretically streamlined application and fulfillment times mean industry trade associations that represent smaller businesses are urging their members to examine PPP loans. https://aviationweek.com/air-transport/aircraft-propulsion/us-small-businesses-may-get-more-covid-19-emergency-funding
19 février 2021 | International, Aérospatial
New light attack aircraft will support the Continued Light Attack Experiment.