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

When the challenge of coronavirus becomes a catalyst to change

One way to understand how the United States' largest defense companies are responding to the coronavirus pandemic is to listen to what their leaders said on the most recent round of earnings calls.

Consider this anecdote from General Dynamics.

Phebe Novakovic, the company's chief executive, told analysts in late July that when COVID-19 struck, “our classified customers closed their sites to all but mission-essential employees. This impacted revenue and earnings and will continue to do so. Some of IT services' highest-margin programs have come to a hard stop because of COVID-19.”

Novakovic described the pandemic as a time of “significant uncertainty.”

That story was not unusual.

David Calhoun, Boeing's CEO, described this as “a historically dynamic and challenging time.” Greg Hayes, Raytheon Technologies' top executive, opened his second-quarter call by stating: “As everyone knows, these last several months have been incredibly challenging.” And Bill Brown, the CEO of L3Harris, said: “The pandemic has challenged us all to find new ways of working effectively.”

To be clear, defense contractors have lost roughly 20 percent of their value in the last six months, by tracking exchange-traded funds. That's the worst run for publicly traded companies in at least a decade.

So what to make of this?

James Taiclet, Lockheed Martin's new leader, said his philosophy is that there may be “an opportunity for us if there is a downturn, we're going to look at the silver linings that may be there.” He was talking about mergers and acquisitions.

But defense companies of all sizes should look for another opportunity: a reason to operate differently, not an excuse to get back to basics. Leaders should reexamine how to embrace new talent, how to effectively telework, and how to add new equipment or partnerships with unexpected sources.

Military leaders for years have said they value agility. Now they will get to watch firsthand who changes, who is prepared for the long term, who adapts and who merely talks about adapting. These “challenges” can give acquisition officials a reason to reward agility.

But back to the earnings calls. Officials hinted about what may happen next, before we — fingers crossed — enter a post-pandemic world. Lockheed's Kenneth Possenriede, the company's chief financial officer, said that while solicitations may be slower getting out the door, final deadlines have not changed.

Brown at L3Harris said: “We believe that the heightened threat environment will drive the trajectory of U.S military spending regardless of the election.”

Novakovic seconded that notion. “There's a general consensus that the threat has not dissipated,” she said. “In fact, arguably some of our potential adversaries have raised additional questions. ... We'll see going forward, but [I'm] not hearing a lot at the grassroots level on ... any pending defense cuts.”

The threat may not have changed. Nor may the business of defense. Yet.

But it's impossible to ignore that almost everything else has.

https://www.defensenews.com/opinion/2020/08/17/when-the-challenge-of-coronavirus-becomes-a-catalyst-to-change/

Sur le même sujet

25 juin 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité, Autre défense

Contract Awards by US Department of Defense - June 24, 2019
ARMY TCOM L.P., Columbia, Maryland, was awarded a $978,946,631 hybrid (cost-no-fee, cost-plus-fixed-fee, and firm-fixed-price) contract for the Persistent Surveillance Systems - Tethered engineering, logistics, operations and program management support. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of June 19, 2024. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W56KGY-19-D-0020). Lockheed Martin Corp., Grand Prairie, Texas, was awarded a $561,802,200 hybrid (cost-plus-fixed-fee and fixed-price-incentive) foreign military sales (Bahrain, Poland and Romania) contract for production of Army tactical missile guided missile and launching assembly service life extension program production 3. Bids were solicited via the internet with one received. Work will be performed in Grand Prairie, Texas; Camden, Arizona; Boulder, Colorado; Clearwater, Florida; St. Louis, Missouri; Lufkin, Texas; Windsor Locks, Connecticut; and Williston, Vermont, with an estimated completion date of June 30, 2022. Fiscal 2018 and 2019 missile procurement, Army and foreign military sales funds in the combined amount of $561,802,200 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-19-C-0092). Donjon Marine, Hillside, New Jersey, was awarded a $12,170,000 firm-fixed-price contract for maintenance dredging of portions of the Newark Bay, New Jersey Federal Navigation Project. Bids were solicited via the internet with three received. Work will be performed in Newark, New Jersey, with an estimated completion date of Sept. 30, 2019. Fiscal 2019 civil works funds in the amount of $12,170,000 were obligated at the time of the award. U.S. Army Corps of Engineers, New York, New York, is the contracting activity (W912DS-19-C-0013). DEFENSE LOGISTICS AGENCY Texas Power & Associates,* Palm Harbor, Florida (SPE8EG-19-D-0117); Atlantic Diving Supply, doing business as ADS,* Virginia Beach, Virginia (SPE8EG-19-D-0112); Berger/Cummins, Washington, District of Columbia (SPE8EG-19-D-0113); Caterpillar Defense, Peoria, Illinois (SPE8EG-19-D-0114); Inglett & Stubbs International, Atlanta, Georgia (SPE8EG-19-D-0115); and QGSI-USA Emergency Power, Houston, Texas (SPE8EG-19-D-0116), are sharing a maximum $900,000,0000 fixed-price, indefinite-delivery/indefinite-quantity contract under solicitation SPE8EG-18-R-0007 for generators. This was a competitive acquisition with eight offers received. These are five-year contracts with no option periods. Locations of performance are Florida, Virginia, Washington, District of Columbia, Illinois, Georgia and Texas, with a June 19, 2024, performance completion date. Using customer is Federal Emergency Management Agency. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. Welch Allyn Inc., Skaneateles Falls, New York, has been awarded a maximum $100,000,000 firm‐fixed‐price, indefinite‐delivery/indefinite‐quantity contract for patient monitoring systems, accessories and training. This is a five-year base contract with one five‐year option period. This was a competitive acquisition with 36 responses received. Location of performance is New York, with a June 24, 2024, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D1‐19‐D‐0019). Hamilton Sundstrand, Windsor Locks, Connecticut, is to be awarded a $16,532,250 firm-fixed price contract for helicopter flight control computers. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. Location of performance is Arizona. Using military service is the Army. Type of appropriation is fiscal 2019 Army working capital funds. The contracting activity is Defense Logistics Agency Aviation, Redstone Arsenal, Alabama (SPRPA1-13-G-001X/SPRRA1-19-F-0329). NAVY L3 Technologies Inc., Northampton, Massachusetts, is awarded a $73,743,347 indefinite-delivery/indefinite-quantity contract containing cost-plus-fixed-fee, cost-reimbursement and firm-fixed-price provisions. This contract provides for depot-level repair, upgrade and overhaul services for submarine photonics mast programs. Work will be performed in Northampton, Massachusetts (98%), and at various places in the U.S. below one percent (2%) and is expected to be completed by June 2025. Fiscal 2019 other procurement (Navy) funding in the amount of $2,146,169 will be obligated on the first delivery order at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured, in accordance with 10 U.S. Code 2304(c)(1) - only one source and no other supplies or services will satisfy agency requirements. The Naval Undersea Warfare Center Division Newport, Newport, Rhode Island, is the contracting activity (N66604-19-D-G900). Katmai Integrated Solutions LLC,* Anchorage, Alaska, is awarded a contract ceiling $21,625,000 indefinite-delivery/indefinite-quantity contract with a three year ordering period to provide subject matter support services for Immersive Training Range Support (ITRS) . Work will be performed at Camp Lejeune, North Carolina (40%), Camp Pendleton, California (40%), and Marine Corps Base, Hawaii (20%), and work is expected to be completed June 24, 2022. Fiscal 2019 operations and maintenance (Marine Corps) funds in the amount of $4,877,737 will be obligated on the first task order immediately following contract award and funds will expire the end of the current fiscal year. This contract was not competitively procured. The contract was prepared in accordance with Federal Acquisition Regulation 6.302-5 and 15 U.S. Code 637. The Marine Corps Systems Command, Quantico, Virginia, is the contract activity (M67854-19-D-7835). Advanced Solutions Inc., Washington, District of Columbia, was awarded $16,863,635 for firm-fixed-price modification to a previously awarded task order N00039-18-F-0069 issued against Blanket Purchase Agreement N00104-08-A-ZF42 and the underlying a multiple award schedule in support of Navy Enterprise Resource Planning. This modification exercises an option for cloud and integration support services. Work will be performed in Loudon, Virginia (50%) and Mechanicsburg, Pennsylvania (50%) and is expected to be completed in June 2020. Fiscal 2019 operation and maintenance (Navy) funds in the amount of $16,863,635 will be obligated at the time of the award, which will expire at the end of the current fiscal year. The Naval Information Warfare Systems Command, San Diego, California, is the contracting activity. (Awarded June 20, 2019) AIR FORCE Concentric Security LLC, Sykesville, Maryland (FA8003-19-D-A001); Nasatka Barrier Inc., Clinton, Maryland, (FA8003-19-D-A002); Cherokee Nation Security & Defense LLC., Tulsa, Oklahoma, (FA8003-19-D-A003); and Perimeter Security Partners LLC., Nashville, Tennessee (FA8003-19-D-A004) have been awarded a $45,000,000 firm-fixed-price, multiple award, indefinite-delivery/indefinite-quantity contract for vehicle barriers maintenance and repair services. This contract provides for all personnel, labor, equipment, supplies, tools, materials, supervision, travel, periodic inspection, minor repair, and other items and services necessary to provide maintenance for Air Force vehicle barrier systems. Work will be performed at all Contiguous United States (CONUS) (excluding Alaska and Hawaii) active duty Air Force installations and is expected to be completed by June 23, 2024. These awards are the result of a competitive acquisition and four offers were received. Fiscal 2019 operations and maintenance funds in the amount of $4,000 ($1,000 per awardee) are being obligated at the time of award. The Air Force Installation Contracting Center, Wright-Patterson Air Force Base, Ohio is the contracting activity. Weldin Construction LLC, Palmer, Alaska, has been awarded a $35,000,000 ceiling increase modification (P00004) to previously awarded contract FA4861-17-D-A200 for simplified acquisition of base engineering requirements. This modification will increase the contract value from $35,000,000 to $70,000,000. Work will be performed at Nellis Air Force Base, Nevada and Creech Air Force Base, Nevada, and is expected to be completed by Dec. 2021. No funds are being obligated at the time of award. The 99th Contracting Squadron, Nellis Air Force Base, Nevada, is the contracting activity. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Leidos Inc., Reston, Virginia, was awarded a modification to exercise an option totaling $8,825,457 to previously awarded contract HR0011-18-C-0127 for a Defense Advanced Research Projects Agency (DARPA) research project. The modification brings the total cumulative face value of the contract to $13,204,195. Work will be performed in Arlington, Virginia; San Diego, California; and King of Prussia, Pennsylvania, with an expected completion date of September 2020. Fiscal 2019 research, development, test and evaluation funds in the amount of $4,600,000 are being obligated at time of award. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1885753/source/GovDelivery/
19 avril 2021 | International, Terrestre

L3Harris Technologies and American Rheinmetall Vehicles team to pursue U.S. Army’s New Fighting Vehicle
The agreement combines L3Harris’ open system design and equipment manufacturing leadership with the maturity and modularity of American Rheinmetall Vehicles’ Lynx next-generation fighting vehicle for an OMFV offering that is...
23 avril 2019 | International, Naval

The US Navy, seeking savings, shakes up its plans for more lethal attack submarines
By: David B. Larter WASHINGTON — The U.S. Navy is shaking up its plan for acquiring a new, much larger and more deadly version of its Virginia-class attack submarine it aims to start buying this year. The plan heading into this year was to start a contract on the 5th block of Virginias in October, beginning with an upgraded version of the block-four Virginia (a “straight-stick” Virginia), then the second boat in 2019 would be the first boat with the added with 84-foot section known as the Virginia Payload Module, designed to expand the Virginia's Tomahawk strike missile load-out from 12 to 40. The rest of the 10-ship buy was suppose to have the VPM, a move designed to offset the retirement of the four 154-Tomahawk-packing guided missile submarines in the mid-2020s. But the Navy is looking for savings and things have changed heading into the 2020 budget cycle. Instead of nine of 10 block-five Virginias being VPM boats, the Navy is proposing to Congress that they add a third Virginia in 2020, but the first boat will be another “straight-stick.” Then in 2021, the Navy will return to buying two Virginias, but the first boat again will be a straight-stick and the second will have VPM. All the block five boats, VPM and otherwise, will have acoustic upgrades. The net effect will be one fewer Virginia Payload Module in the block-five buy. Instead of nine of 10 boats in the buy having VPM, the Navy is proposing that eight of 11 boats have the VPM, deferring the VPM presumably to Virginia Block Six, which is slated to begin in 2024. The last-minute shuffling of the deck on Virginia, which includes pushing out VPM boats for which Congress had already appropriated advanced procurement money, shifts what was originally supposed to be the end of the straight-stick Virginias this year to buying one new straight stick a year for the next three years. This has raised concerns among those in the submarine building industry because of the potential for disruptions in the workflow at the yards, which is carefully planned out years in advance, and could even bleed over into the new, strategically vital Columbia-class ballistic missile submarine program. “Just like there is one rule in real estate (‘location, location, location'), there is one rule in building ships: Predictability, predictability, predictability,” said Dan Gouré, a former Bush Administration defense official and military analyst with the Arlington-based Lexington Institute. “And they are messing with that now, for the first time in quite a while. And that makes no sense.” The late changes have also affected the timeline for contract negotiations, and a source with knowledge of the details said a planned April contract date for block five is now unlikely. The date had already slipped from the beginning of the fiscal year in October, according to 2018 budget documents. The Virginia-class program has begun seeing creeping delays which the Navy acknowledged this year will likely be between four and seven months on each boat for the foreseeable future. The service says it has struggled to meet more aggressive construction timelines because of issues within the supplier base, which are causing delays. A spokesman for the Navy's research, development and acquisition office said he wouldn't comment on precisely what savings would be achieved with the strategy, citing ongoing negotiations, but said the move of a matter of competing priorities within the budget. He also said the changes in the VPM schedule were not part of ongoing supplier challenges. “To support the Navy's PB-20 request the decision to delay VPMs in FY-20 and 21 was based on competing requirements,” said Capt. Danny Hernandez, RD&A spokesman. “This was not based on any issues with shipbuilding or supply chain.” Added Wrinkle The third boat in 2020 also adds a wrinkle to the schedule. According to the Navy's justification books, the third boat will not start construction until 2023, which is the year before the service plans to buy a second Columbia-class boomer. That means the shipyards will be building three Virginias in 2023. The Virginia Payload Module strategy of continuing to buy straight-stick Virginias into 2021, ensures that General Dynamics Electric Boat and Huntington Ingalls Newport News will be building both straight sticks and Virginia Payload Module Virginia-class boats and the Columbia class simultaneously through 2026 and beyond, according to Navy budget documents. That will stress the yards and the supplier base, raising the risk that Columbia could run late, according to an industry source who spoke on background. “The juxtaposition of Virginia VPM and Columbia will be an added challenge for the shipyards,” the source said. “VPM and Columbia will have no learning curves when both projects are started. As we saw with Seawolf and Virginia (and every other first of a class ship the Navy has ever built) first ships are late and over cost. “Unfortunately, with the delay to the original program, Congress and the Navy have run the clock down, so there is no margin for Columbia to be late.” The mounting challenges within the submarine building enterprise prompted RD&A chief James Geurts to stand up a new program office specifically for the Columbia class, which was previously organized under Program Executive Office Submarines. Rear Adm. Scott Pappano is heading the new enterprise. “My concern was with Columbia being our No. 1 acquisition priority and all the other submarine activities we have going on, do we have enough leadership bandwidth available to oversee and run all those programs simultaneously?” Geurts said in an early March roundtable with reporters. “As I understand the challenges going forward, [I wanted to] get PEO-level support to that program as it starts ramping up. And I didn't want to wait for a crisis for that to occur; I wanted to make sure we are proactively working the program.” https://www.defensenews.com/naval/2019/04/04/the-us-navy-seeking-savings-shakes-up-its-plans-for-more-lethal-attack-submarines/

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