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

We Need $10B to Pay Contractors’ Coronavirus Expenses, Pentagon Tells Congress

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.

https://www.defenseone.com/business/2020/07/we-need-10b-pay-contractors-coronavirus-expenses-pentagon-tells-congress

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  • Defense firm advocates for ‘hybrid procurement system’ to save billions in the UK

    19 mai 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Defense firm advocates for ‘hybrid procurement system’ to save billions in the UK

    By: Andrew Chuter LONDON – Adopting a new hybrid procurement system could save Britain's Ministry of Defence billions of pounds and get cutting edge technology in the hands of troops faster, a top American satellite communications company argued to the parliamentary Defence Committee. Written evidence from Viasat's U.K. arm advocating a shake-up in British procurement processes was published by the committee May 13 as part of its inquiry into the procurement and prosperity aspects of the country's defense industrial policy. Top of the list of proposals submitted by the company is a hybrid approach to procurement that saves money and leads to experimentation to deliver missions faster, said Viasat UK Managing Director Steve Beeching in an interview with Defense News following publication of the evidence. “We need a hyrid process with a platform-centric approach for very long lead, complex structural equipment elements," said Beeching, adding that more agile,, adaptive procurement for technology is required to meet the mission threat. "At the end of the day buying outdated technology doesn't deliver the mission,” Beeching said. The hybrid idea is among a raft of potential procurement changes proposed by Viasat. The company also advocated for ‘test before you buy' solutions from industry to reduce MoD costs and risk; building trusted partnerships between government and the private sector to drive information advantage; sharing risk and design obligations, thereby alleviating the burden on existing program processes; and executing an outcomes-based assessment program. The proposals come as the company is considering a potentially significant investment in the U.K. From a U.K. base near Farnborough, southern England, Viasat has a growing presence in the defense and security sector providing UHF satellite communications, tactical data system, sovereign information assurance and other services. It is currently considering investing about £300 million, or $366 million, in the U.K. and doubling its workforce of some 80 people with additional network and cyber personnel. Viasat, which is headquartered in Carlsbad, California, said a change of direction on procurement in the upcoming integrated review of defense and security could bring big rewards for government, the military and the domestic defense industry. “The 2020 strategic defense and security review will, if carried out correctly, give the MoD an opportunity to save billions of pounds, end complex procurement procedures and ensure that U.K. armed forces have available the most up-to-date equipment,” Viasat said in its evidence. “This will help to meet the rapidly changing adversarial environment the U.K. is facing. The review must provide a process to deliver a stronger industrial base, with more UK jobs at higher skill levels, achieving greater foreign investment and opportunity for exports,” the company told the committee. “To improve, the MoD needs to simplify the complexity of its huge defense organization into elements that can deliver change for the benefit of the nation, troops and way of life. Behavioral challenges occur where the MoD manages risk and outcomes as the primary objective [to keep the nation safe], but to move forward requires risk-taking,” said the evidence. The MoD's performance has been heavily criticized over many years for late delivery and cost overruns; although often the fault lays with government or the military rather than procurement officials. Despite several efforts to reform procurement, most recently through the Levene and Gray reviews, the right remedy to the problem has been elusive, despite some performance gains. Now, the new integrated defense review, virtually paused for the next few months as a result of the COVID-19 crisis, is likely to have another go at getting it right. Beeching, said that the present procurement policy was failing to produce the required results. “Current procurement procedures have yielded program delays, overspending and higher risks to the MoD. We feel very strongly that a more agile, fused-hybrid approach is needed to procure the appropriate systems and services required to keep pace with technology advancement. By modernizing the procurement process, MoD can work toward better processes to keep the nation safer,” said Beeching. “Its about approach and behaviors. We are not advocating stripping everything apart,” he said. With the COVID-19 crisis grabbing most of the government's attention, a major overhaul of defense procurement may not be on the list of priorities. Beeching, though, said if you wait for the perfect time it will never exist. “The lessons we are learning through things like COVID-19, through other things that are happening in the world, make more imperative that an achievable plan like the one we are proposing moves forward. It will give us more options to get the required capabilities to our service men and women, the government and the cabinet office much quicker than we do today,” he said. https://www.defensenews.com/global/europe/2020/05/14/defense-firm-advocates-hybrid-procurement-system-to-save-billions-in-the-uk/

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  • Pentagon science office launches program to develop manufacturing in space ... and on the moon

    11 février 2021 | International, Aérospatial

    Pentagon science office launches program to develop manufacturing in space ... and on the moon

    Nathan Strout WASHINGTON — The Defense Department's emerging technology research arm will invest in new materials and processes that could enable manufacturing in space and on the moon's surface. To that end, the Defense Advanced Research Projects Agency is launching the Novel Orbital and Moon Manufacturing, Materials and Mass-efficient Design program, or NOM4D. “NOM4D's vision is to develop foundational materials, processes and designs needed to realize in-space manufacturing of large, precise and resilient Defense Department systems,” said Bill Carter, program manager in DARPA's Defense Sciences Office, in a press release. DARPA is launching the program in response to the natural limitations of rocket launches in placing larger structures and systems in orbit, the agency said. While the launch industry has expanded significantly in recent years, with dozens of new providers entering the fray, rocket launches are inherently limited — even the largest rockets have weight and volume restrictions. The solution? Place smaller pieces of a structure on orbit with multiple launches, and then assemble them in space. Or better yet, collect materials from the moon to build with. “We will explore the unique advantages afforded by on-orbit manufacturing using advanced materials ferried from Earth,” Carter said. “Large structures such as antennas and solar panels can be substantially more weight efficient, and potentially much more precise. We will also explore the unique features of in-situ resources obtained from the moon's surface as they apply to future defense missions.” Manufacturing in space could also enable more flexibility in the design of space systems. Today, most satellites are designed to be as compact as possible in order to be integrated with and launched on rockets. But by assembling systems in space, systems could be designed without some of those volume restrictions, allowing them to be more mass efficient. “We're looking for proposers to come up with system designs that are so mass efficient that they can only be built off-earth, and with features that enable them to withstand maneuvers, eclipses, damage and thermal cycles typical of space and lunar environments,” Carter said. “Given the constraints of ground test, launch and deployment, the traditional approach to designing space structures is not likely to result in dramatic improvements in mass efficiency. In order to take the next step, we've got to go about materials, manufacturing and design in a completely new way.” The idea of assembling systems and structures in space isn't new. Famously, the International Space System was assembled in space using a number of components individually launched into space. “People have been thinking about on-orbit manufacturing for some time, so we expect to demonstrate new materials and manufacturing technologies by the program's end,” Carter added. With NOM4D, DARPA will work with participants over three 18-month phases to develop precise, mass efficient structures that could be used for on-orbit construction. Each phase will focus on one of three applications: large solar arrays, large radio frequency reflector antennas, and segmented infrared reflective optics. The agency will host a proposers day webinar on Feb. 26 and expects to release a broad agency announcement solicitation in February. https://www.c4isrnet.com/battlefield-tech/space/2021/02/09/darpa-launches-new-program-to-develop-manufacturing-in-spaceand-on-the-moon/

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