Nouvelles

Frank Bajak, The Associated Press BOSTON — Seventeen years after it was born with the help of CIA seed money, the data-mining outfit Palantir Technologies is finally going public in the biggest Wall Street tech offering since last year's debut of Slack and Uber. Never profitable and dogged by ethical objections for assisting in the Trump administration's deportation crackdown, Palantir has forged ahead with a direct listing of its stock, which is set to begin trading Wednesday. In its stock offering, the company isn't selling newly minted shares to raise money; it's simply listing existing shares for public trading. The low-key strategy may not generate the enthusiasm many technology offerings do. But it's in character for a secretive company long reliant on spies, cops and the military as customers — and whose founders are holding onto voting control of the company. The big question for both investors and company management: Can Palantir successfully transition from a business built on the costly handholding of government customers to serving corporate customers at scale? The company is a hybrid provider of software and consulting services that often embeds its own engineers with clients. Analysts say its future depends on selling multinationals on its tools for gathering disparate data from an ever-expanding data universe and using artificial-intelligence technology to find previously undetectable patterns. Those can theoretically guide strategic decisions and identify new markets much as they have aided in tracking terrorists and sorting military intelligence. The company sets itself apart from most U.S. technology providers, and just moved its headquarters to Denver from Silicon Valley. Palantir colors itself patriotic and belittles other tech firms that won't unquestionably support U.S. dominance in war fighting and intelligence. “Our software is used to target terrorists and to keep soldiers safe,” CEO Alex Karp wrote in a letter accompanying Palantir's offering prospectus. While Karp acknowledged the ethical challenge of building software that “enables more effective surveillance by the state,” Palantir's prospectus touts its work helping U.S. soldiers counter roadside bombings and fight the Islamic State group. The iconoclastic entrepreneur and PayPal co-founder endorsed President Donald Trump in 2016, worked on his transition team and holds the largest chunk of Palantir stock. Thiel already exerts tremendous power from the board of Facebook, which dominates global media and seeks to create a digital currency. In its IPO prospectus, Palantir paints a dark picture of faltering government agencies and institutions in danger of collapse and ripe for rescue by a “central operating system” forged under Thiel's auspices. As the offering is structured, Thiel will be the dominant voice among the Palantir co-founders who will retain voting control. “Is that someone who you want deciding how a component of the (national) security apparatus is designed?” asked New York University business professor Scott Galloway. “If you believe that power corrupts and checks and balances are a good idea, this is just from the get-go a really bad idea.” Earlier in September, BuzzFeed reported that Thiel hosted a known white nationalist, Kevin DeAnna, at a 2016 dinner party, citing emails it obtained and published whose authors refused to talk to the online news outlet. Thiel declined through a spokesman to discuss the report with The Associated Press. Critics say he shares the blame for Facebook's incomplete removal of toxic disinformation disseminated by the pro-Trump far-right fringe. Then there are Palantir's fundamentals, which Galloway considers lousy. The company has just 125 customers in 150 countries, including Airbus, Merck, Credit Suisse and the Danish National Police. Slightly less than half its 2019 revenues were from government agencies, and three clients — which Palantir did not name — accounted for almost a third of revenues. “They're massively unprofitable and they've never been able to figure it out,” Galloway said, noting that it took Google three years to earn a profit, and Amazon seven. Over a much longer span, Palantir has accumulated $3.8 billion in losses, raised about $3 billion and listed $200 million in outstanding debt as of July 31. Palantir, named for the mystical all-seeing stones from Tolkien's “Lord of The Rings,” has recently been deepening its relationship with Uncle Sam, including winning a modest contract early in the COVID-19 pandemic for helping the White House gather data on the virus' impact. Senior emerging technology analyst Brendan Burke of Pitchbook says he isn't worried that Thiel's association with Trump will hurt the company if Trump loses the election. “The political connections don't appear to be the main driver of their recent substantial contract wins,” he said, although he noted that government contracts can be more volatile than corporate ones, where Palantir's foothold is less firm. Palantir offers two software platforms. Foundry is designed to link disparate and largely incompatible data sources into a central operating system. It's the company's primary hope for broadening its business. An earlier product, Gotham, has been used by defense and intelligence analysts and police departments to identify patterns deep within datasets. But the value of “predictive policing” tools developed with the platform have been questioned for their potential to unfairly target people of color. The New Orleans and New York City police departments, once customers, have used it. A 2017 research paper by University of Texas sociologist Sarah Brayne, who studied the Los Angeles Police Department's use of Gotham, found the software could lead to a proliferation of unregulated personal data collected by police from commercial and law enforcement databases. On Monday, Amnesty International issued a briefing that says Palantir is failing to conduct human rights due diligence around its contracts with Immigration and Customs Enforcement, calling it “deeply ironic” that the company crows about its determination not to work with regimes like China that abuse human rights. Palantir's ICE contracts involve the maintenance and improvement of two products used in deportation raids. One of them, its web-based Falcon tool, has enhanced data accessible to investigators “involving the illegal movement of people into, within, and out of the United States,” according to documents obtained by The Associated Press, including court records, and by the nonprofit Electronic Privacy Information Center in a freedom-of-information request. Palantir has acknowledged in its SEC filing that “unfavorable coverage in the media” and from social activists could hurt its business. It also says its contractual obligations might prevent it from being able to defend its actions publicly, although it recently named a former Wall Street Journal reporter to its board. Negative publicity over ICE contracts may also have hurt company recruitment on college campuses. https://www.defensenews.com/industry/2020/09/30/secretive-never-profitable-palantir-makes-its-market-debut/

Ed Adamczyk Sept. 30 (UPI) -- Lockheed Martin will invest nearly $71 million to correct an ongoing problem with spare parts for the F-35 fighter plane, an agreement the Pentagon states. The agreement, announced on Tuesday, will be formalized within two weeks, a Defense Contract Management Agency spokesman said. The deal refers to over 15,000 F-35 spare parts delivered to the U.S. military without "electric equipment logs," which permit the parts to the identified and absorbed into logistics systems. Incorrect or unavailable information delays the uploading of data, and the dispute centered on at least $183 million in Defense Department expenses owing to the problem. The parts in question were rejected for installation only because of the lack of tracking data -- no flaws in safety or manufacturing were inferred, officials said. The action was initiated after the Pentagon's inspector general discovered the problem in a 2019 audit, and recommended that the Defense Department should seek $303 million in refunds. Instead of a direct payment from Lockheed, the defense contractor will "compensate the government with Lockheed Martin investments" to ensure that future spare parts are delivered with accurate EELs, company spokesman Brett Ashworth said. RELATED Lockheed, Boeing and Saab bid on Canada's fighter jet contract The House Oversight and Reform Committee was critical of Lockheed during a July hearing, but on Wednesday, committee members Rep. Carolyn Mahoney, D-N.Y., and Rep. Stephen Lynch, D-Mass., applauded the resolution of the dispute. "We applaud the Department of Defense for its efforts to hold Lockheed Martin accountable for failing to meet its F-35contract requirements," Mahoney and Lynch said in a joint statement. "While we believe Lockheed should have reimbursed American taxpayers for a greater share of the funds DOD spent to address the inefficiencies uncovered by our committee's investigation, this is a step in the right direction. We look forward to seeing the final signed agreement that codifies Lockheed Martin's commitment to improving the F-35 program," they said in the joint statement. https://www.upi.com/Defense-News/2020/09/30/Lockheed-Pentagon-agree-on-706M-settlement-over-F-35-parts-problems/5021601494979/

Andrew Eversden WASHINGTON — Palantir, the Silicon Valley-based software company that successfully sued the Army in 2016, wants to become “the central operating system for all U.S. defense programs," the company wrote in paperwork filed with the U.S. Securities and Exchange Commission for its initial public offering. The software company, known for its controversial work with the U.S. government, went public on the New York Stock Exchange on Wednesday said that it wants its big data analytics platforms to “become the default operating system for data across the U.S. government.” Palantir, according to the filing, views the U.S. government's push toward alternative acquisition methods as a primary opportunity to for their company to grow. The federal government, particularly the Defense Department, is increasingly using what's known as Other Transaction Authorities and Small Business innovation Research contracts to eliminate the long timelines associated with the traditional contracting process. In 2019, research showed that those types of awards accounted for nearly 10 percent of the department's research, development, test and evaluation spending. “Our software is well positioned for this new procurement approach. Our platforms have been tested and improved over years of use across industries and can rapidly be deployed by the government with minor configurations. This gives us a significant edge over contractors selling custom tools,” the filing states. Palantir expects that there is $26 billion worth of work in the federal space, the filing stated. The company offers two big data analytics platforms, Foundry and Gotham, for data-driven decisionmaking by its customers. According to the filing, the company is currently working with Air Force, Army, Navy, Marines, Special Operations Command and “other defense agencies,” along with several other civilian agencies, including the Department of Veterans Affairs. The filing also states that the Army uses the platform to “keep one million troops ready for their missions, and every battalion in the U.S. Army uses our software for intelligence analysis.” In its filing, the the company specifically cites the DoD's $144 billion in fiscal 2020 on procurement funds and $105 billion on research, development, testing, and evaluation dollars as areas where its software “can contribute to programs covered by both of those budgets.” In 2016, Palantir sued the Army over its procurement strategy for an intelligence analysis system. After winning that case, which forced the Army to seek commercial solutions before building their own system. Since winning the case in 2018, the company has received $134.5 million in revenue from Army accounts, up from about $52 million in the previous 10 years. “Our victory in federal court is transforming the procurement of goods and services across the U.S. federal government,” the filing states. “For us, this shift in government acquisition represents a significant expansion of our [total addressable market] with the U.S. federal government. We are working towards becoming the central operating system for all U.S. defense program.” https://www.c4isrnet.com/industry/2020/09/30/palantir-wants-to-be-the-central-operating-system-for-all-us-defense-programs/

THERESA HITCHENS WASHINGTON: The Air Force has awarded ATAC, Textron Systems' military airborne training unit, a contract to provide adversary air combat training to F-22 and F-35 pilots at Eglin AFB, Florida — making it the biggest winner in the initial round of the service's overarching effort to outsource pilot training that eventually could be worth billions. “When you add up the number of either sorties or flight hours — which of course the money goes with because you get paid by how much you fly — then you're at more than 50 percent of the total,” Richard Zins, ATAC vice president of business operations, told me today. Under the new award, worth $94 million, ATAC will use its fleet of upgraded and refurbished Dassault Aviation Mirage F1 fighters to play the ‘bad guys' in mock combat against Air Force pilots in more than 1,100 sorties per year for up to four-and-a-half years, ATAC explained in a press release today. The training is expected to begin in January 2021. The award is the last of six Red Air training ‘tasking orders' solicited this year under the the Air Force's Combat Air Forces (CAF)/Contracted Air Support (CAS) program. The Air Force last October chose seven contractors to compete under an overarching indefinite delivery, indefinitely quantity (ID/IQ) contract, worth up to $6.4 billion, for both adversary air combat training and close air support training. As colleague Rachel Cohen explained in March, the ID/IQ originally envisioned 40,000 hours of adversary air combat training at 12 locations. The ID/IQ also envisioned close air support training at up to 10 facilities, of which three were have been awarded this year. ATAC in July nabbed the awards for CAF training at Holloman AFB, New Mexico and Luke AFB in Arizona. Together they are worth up to $240 million. ATAC's flight operations at Holloman AFB are starting up, and will commence at Luke AFB by next month, Zins said. The company also is providing close air support training, playing as surrogate ‘Blue Forces,' for Air Force Special Operations Command Joint Terminal Air Controllers (JTACs) on the ground under the CAF/CAS program under an Aug. 10 tasking order worth $19.9 million, an Air Force spokeperson told me in an email today. Alongside ATAC's July award, two other companies — Draken International and Tactical Aircraft Support Inc (TACAIR) — also were awarded adversary air training tasking orders under the CAF/CAS program. Draken International is providing training at two sites: for F-15E pilots at Seymour Johnson AFB in North Carolina, under an award worth up to $74.5 million; and for Air National Guard F-16 pilots at Kelly Field in Texas, under an award worth up to $28.2 million. Draken has a mixed fleet of aircraft for use in training, including the upgraded Mirage F1M, the Aero Vodochody L-159E Honey Badger, the Douglas A-4 Skyhawk, and the Cheetah produced by South African firm Denel Aviation. The company further won a contract in 2018 to fly as aggressors at the Air Force Weapons School and Red Flag exercises at Nellis AFB in Nevada. TACAIR won a contract up to $90.4 million over four and a half years for training of F-15C/D pilots at Kingsley Field Air National Guard Base in Oregon. TACAIR is providing the training using its fleet of F-5ATs Advanced Tigers, which it also uses to train Navy pilots including at the Naval Fighter Weapons School (NFWS), i.e. TOPGUN. Industry officials are expecting the service to award another tranche of tasking orders next year. However, so far, the service has released no information about the scope or timing of a second round of training awards (and Air Force PAO is still working on my inquiry.) Zin explained that the market is booming for commercially provided airborne training because of the Air Force's enormous needs, driven in large part by its continued pilot shortage. In addition, Zin explained, training for pilots of fifth generation aircraft — especially the F-35, but also the F-22 — requires many more flying hour than older fighters. Another driver is the fact that when the Air Force dedicates an aircraft to pilot training, it takes a toll on combat readiness. Lastly, Zin said, it is more cost-effective to use outside contractors for adversary air training — and given that many of the pilots employed in the industry are retired military pilots. The CAF/CAS program awards for adversary training have “more than doubled” ATAC's business alone, he said. “”It's a massive increase to the industrial base of the companies providing this service.” https://breakingdefense.com/2020/09/atac-nabs-final-contract-for-initial-red-air-training-sites/

SYDNEY J. FREEDBERG JR. Mounted on a pair of heavy trucks, the Terrestrial Layer System – Echelons Above Brigade (TLS-EAB) will do long-range jamming for high-level HQs – and fry the circuits of incoming enemy missiles as well. WASHINGTON: The Army officially asked industry today to help take a big step towards repairing the Army's long-neglected EW corps and countering Russian and Chinese jamming – and it'll have an unexpected missile defense dimension as well. Boeing and Lockheed are still building rival prototypes for the Army's next-generation cyber/electronic warfare vehicle, the Terrestrial Layer System set to enter service in 2022. The new system, known as TLS-EAB — will be TLS's much bigger brother. The service has set a pretty brisk schedule, talking of fielding something by the end of 2023. The original-flavor TLS, aka TLS-BCT, will fit on an 8×8 Stryker armored vehicle and accompany frontline Brigade Combat Teams. TLS-Echelons Above Brigade will fill a pair of heavy trucks, probably Oshkosh FMTVs, Army officials unveiled today: One truck will carry sensors, transmitters, and a tethered drone or aerostat to detect enemy signals, triangulate their locations for artillery and airstrikes, and disrupt them electronically with a combination of jamming, wireless hacking, and deceptive signals. It'll be crewed by eight soldiers, four specializing in cyber/electronic warfare and four in signals intelligence. There will likely be sub-variants, for example with a division-level system designed to frequently relocate, while a Multi-Domain Task Force might accept a less mobile version with more range and power. But overall, this long-range offensive cyber/EW/SIGINT capability is essentially a supersized version of what the TLS-BCT will do, albeit operating over much greater distances. The other truck, however, adds a dimension absent from the brigade-level TLS-BCT: a high-powered but relatively short-ranged defensive EW capability to protect key sites like division, corps, and theater command posts. It'll be crewed by four electronic warfare soldiers, but there's no SIGINT on this variant. Instead, it'll have an “electronic countermeasure point defense suite” – again, using a mix of jamming, wireless hacking, and deceptive signals – to decoy or disable incoming enemy drones, missiles, rockets, and artillery rounds, many of which rely on radar for guidance and fusing. Because it's mounted on trucks, TLS-EAB can be a lot bigger and more powerful than the Stryker-mounted TLS-BCT or the drone-mounted jamming/sensing system known as MFEW-Air-Large. But it will share data with those systems, because they'll be closer to the front line and/or able to fly over obstacles to see distant threats. TLS-EAB will also link to other Army and interservice systems like the EWPMT command-and-control software and the TITAN satellite terminal. The defensive suite, in particular, will get warning of incoming threats from air & missile defense networks – which we can presume includes the Army's forthcoming IBCS – to “national technical means,” such as spy satellites. Now, the three Army colonels who briefed the AOC CEMAlite conference this afternoon didn't provide any details on what kind of incoming missiles the TLS-EAB defensive suite is meant to stop. Actually jamming an inbound hypersonic or ballistic missile might be prohibitively hard since those weapons fly so fast – Mach 5 and up – and may only be in range for seconds. But if you deceive the enemy's reconnaissance and targeting systems into shooting at a decoy instead of the real target, it doesn't matter how fast their missiles are — they'll still miss. It's also worth noting that the Army hasn't locked down the formal requirements for this system – a draft Abbreviated Capabilities Development Document (ACDD) is in the works – and the service intends to leave plenty of leeway for industry to propose out-of-the-box ideas. “These are our initial concept ideas and not intended to constrain or limit the industrial solution space,” said Col. Jennifer McAfee. “Please think of this is a starting point in a long and mutually beneficial conversation.” That said, all proposals need to rely on an Army-sponsored software framework known as Photon and a set of technical standards known as CMOSS. Both are intended to let the service plug and play components from different vendors instead of getting locked into one company's proprietary solution that's not compatible with other people's innovations. There's also an official Software Development Kit (SDK) to let companies integrate their sensors into the Army-standard systems. What the Army rolled out today was a draft concept of operations (CONOP) for TLS-EAB, explained the Army project manager, Col. Kevin Finch. Looking ahead, he outlined an ambitious schedule: January 2021: The Army will hold an initial industry day for interested vendors (TBD whether it'll be in-person or online). February-March 2021: Individual vendors will have the opportunity to meet one-on-one with Army officials. Meanwhile the service will put together a draft Request For Proposals (RFP) and circulate it for industry feedback. June 2021: a second industry day. July 2021: the release of the final RFP and the official launch of what's known as a Middle-Tier Acquisition process. Fall 2023 (first quarter of federal fiscal year 2024): the First Unit Equipped (FUE) will receive prototype TLS-EAB vehicles. If TLS-EAB can stick to that 2023-2024 timeline, it'll enter service along with a host of new long-range Army systems, from howitzers and hypersonics to intermediate-range missiles and missile defense lasers. But between the budgetary hit from COVID and the upcoming election, it's far from certain the Army can afford it all. https://breakingdefense.com/2020/09/army-wants-new-mega-jammer-in-2023-tls-eab/

Drew Schnabel The U.S. Department of Defense is set to adopt an initial zero-trust architecture by the end of the calendar year, transitioning from a network-centric to a data-centric modern security model. Zero trust means an organization does not inherently trust any user. Trust must be continually assessed and granted in a granular fashion. This allows defense agencies to create policies that provide secure access for users connecting from any device, in any location. “This paradigm shift from a network-centric to a data-centric security model will affect every arena of our cyber domain, focusing first on how to protect our data and critical resources and then secondarily on our networks,” Vice Adm. Nancy Norton, director of the Defense Information Systems Agency and commander of the Joint Force Headquarters-Department of Defense Information Network, said at a virtual conference in July. How does the Pentagon's AI center plan to give the military a battlefield advantage? The Pentagon's artificial intelligence hub is working on tools to help in joint, all-domain operations as department leaders seek to use data to gain an advantage on the battlefield. Andrew Eversden To understand how the DoD will benefit from this new zero-trust security model, it's important to understand the department's current Joint Information Environment, or JIE, architecture; the initial intent of this model; and why the JIE can't fully protect modern networks, mobile users and advanced threats. Evolving DoD information security The JIE framework was developed to address inefficiencies of siloed architectures. The goal of developing a single security architecture, or SSA, with JIE was to collapse network security boundaries, reduce the department's external attack surface and standardize management operations. This framework helped ensure that defense agencies and mission partners could share information securely while reducing required maintenance and continued infrastructure expenditures. Previously, there were more than 190 agency security stacks located at the base/post/camp/station around the globe. Now, with the JIE architecture, there are just 22 security stacks centrally managed by the Defense Information Systems Agency to provide consistent security for users, regardless of location. “This paradigm shift from a network-centric to a data-centric security model will affect every arena of our cyber domain, focusing first on how to protect our data and critical resources and then secondarily on our networks,” Vice Adm. Nancy Norton, director of the Defense Information Systems Agency and commander of the Joint Force Headquarters-Department of Defense Information Network, said at a virtual conference in July. To understand how the DoD will benefit from this new zero-trust security model, it's important to understand the department's current Joint Information Environment, or JIE, architecture; the initial intent of this model; and why the JIE can't fully protect modern networks, mobile users and advanced threats. Evolving DoD information security The JIE framework was developed to address inefficiencies of siloed architectures. The goal of developing a single security architecture, or SSA, with JIE was to collapse network security boundaries, reduce the department's external attack surface and standardize management operations. This framework helped ensure that defense agencies and mission partners could share information securely while reducing required maintenance and continued infrastructure expenditures. Previously, there were more than 190 agency security stacks located at the base/post/camp/station around the globe. Now, with the JIE architecture, there are just 22 security stacks centrally managed by the Defense Information Systems Agency to provide consistent security for users, regardless of location. Initially, the JIE was an innovative concept that took the DoD from a highly fragmented architecture, in which each agency managed its own cybersecurity strategy, to an architecture in which there is a unified SSA. However, one of the early challenges identified for the JIE was managing cloud cybersecurity as part of the SSA. The components in the JIE — the Joint Regional Security Stacks family's internet access points and cloud access points — have traditionally focused on securing the network, rather than the data or user. As more DoD employees and contractors work remotely and data volumes increase, hardware cannot scale to support them. This has created ongoing concerns with performance, reliability, latency and cost. A cloud-first approach In response, the DoD leverages authorized solutions from the Federal Risk and Authorization Management Program, and it references the Secure Cloud Computing Architecture guidance for a standard approach for boundary and application-level security for impact Level 4 and 5 data hosted in commercial cloud environments. The purpose of the SCCA is to provide a barrier of protection between the DoD Information Services Network and the commercial cloud services that the DoD uses while optimizing the cost-performance trade in cybersecurity. Defense agencies are now exploring enterprise-IT-as-a-service options to move to cloud, and reduce the need for constant updates and management of hardware. Through enterprise-IT-as-a-service models, defense agencies will be able to scale easily, reduce management costs and achieve a more competitive edge over their adversaries. Before the pandemic hit, defense agencies were already moving to support a more mobile workforce, where employees can access data from anywhere on any device. However, a cyber-centric military requires security to be more deeply ingrained into employee culture rather than physical protection of the perimeter. The next evolution to secure DISA and DoD networks is to embrace a secure access edge model with zero-trust capabilities. The SASE model moves essential security functions — such as web gateway firewalls, zero-trust capabilities, data loss prevention and secure network connectivity — all to the cloud. Then, federal employees have direct access to the cloud, while security is pushed as close to the user/data/device as possible. SP 800-27, zero-trust guidance from the National Institute of Standards and Technology, provides a road map to migrate and deploy zero trust across the enterprise environment. This guidance outlines the necessary tenants of zero trust, including securing all communication regardless of network location, and granting access on a per-session basis. This creates a least-privilege-access model to ensure the right person, device and service have access to the data they need while protecting high-value assets. As the DoD transforms the JIE architecture to an as-a-service model with zero-trust capabilities, defense agencies will experience cost savings, greater scalability, better performance for the end user and war fighter, improved visibility, and control across DoD networks — and ultimately a stronger and more holistic cybersecurity capability moving forward. https://www.c4isrnet.com/opinion/2020/09/29/the-dod-needs-data-centric-security-and-heres-why/

Sebastian Sprenger COLOGNE, Germany — The German Defence Ministry wants to start fresh on a new heavy transport helicopter after finding that offers from American firms Boeing and Lockheed Martin for the Chinook and the King Stallion, respectively, were too expensive, officials announced Tuesday. The surprise decision halts an acquisition race that was scheduled to a see a contract awarded in 2021. The two companies delivered their initial proposals for the program, aimed at replacing Germany's aging CH-53G helicopters, in January 2020. A request for a second proposal was expected by the end of this year. The move comes as the budget implications of the coronavirus crisis are starting to materialize, despite leaders' pledges to keep military spending high. Given that context, other programs are also expected to be on shaky ground, according to sources in Berlin. Officials canceled the helicopter race — locally known as Schwerer Transporthubschrauber, or STH — because the government deemed offers by the defense giants as “uneconomical,” a Defence Ministry statement read. The chance of meeting all requirements while adhering to the envisioned multibillion-dollar budget would be “unlikely,” officials wrote. The STH program was initially planned to be a poster child for a no-frills, off-the-shelf purchase that's easy on the defense budget. But acquisition officials kept piling on requirements to such a degree that it surprised some industry executives associated with the bidders, Defense News reported earlier this year. Also included in the government's requirements was a decades-long maintenance scheme under which contractors had to guarantee certain availability rates. Tobias Lindner, the Green Party's point man in the Bundestag for defense issues, called the helicopter program's a “bitter sign” for Germany's soldiers. He argued the Defence Ministry had been naive in its approach to the much-needed acquisition. “A new competition alone won't solve that problem,” he said. https://www.defensenews.com/global/europe/2020/09/29/germany-walks-away-from-lockheed-boeing-cargo-helicopter-offers/

Joe Gould WASHINGTON ― Democrats unveiled a $2.2 trillion coronavirus relief package Monday night without defense industry stimulus funding, hinting that the billions of dollars defense firms sought to diffuse the economic impact of the pandemic are not coming. Defense officials warned they will have to tap modernization and readiness funds if Congress does not appropriate about $10 billion for defense contractors' coronavirus-related expenses, as authorized by Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act. However, neither the new Democratic measure nor the last draft from Senate Republicans contained any such aid. Smaller than the $3.4 trillion bill that passed the House in May in order to come closer to a compromise with Republicans, the new bill comes as House Speaker Nancy Pelosi, D-Calif., and Treasury Secretary Steven Mnuchin are attempting to revive long-stalled aid negotiations. The House bill could be a final attempt to pass coronavirus aid legislation before the Nov. 3 presidential and congressional elections. The House bill does propose nearly $2.5 billion for defense: $320 million in emergency operations and maintenance funding for the services to buy personal protective equipment; $1.4 billion to pay salaries and other needs of military base facilities like child care centers and post exchanges that are usually paid by revenue-generating accounts; and $705 million for the Defense Health Program to cover COVID-19 prophylactics, therapeutics and personal protective equipment. Senate Majority Leader Mitch McConnell, R-Ky., proposed his own $300 billion bill, but that legislation failed in the Senate earlier this month. That bill left out the $29 billion for defense ― which included $11 billion in Section 3610 reimbursements ― that Republicans proposed in their $1 trillion stimulus in July. The Senate is set to vote on a House-passed continuing resolution to prevent a government shutdown. It would extend the window for Section 3610 reimbursements through Dec. 11, a step sought by trade groups. But there has been no matching appropriation. Defense industry sources say lobbying for aid hasn't gained traction beyond a handful of hawkish Republicans, despite a public push from Pentagon acquisition chief Ellen Lord. The Pentagon's senior-most officials have not been as vocal as Lord, and lawmakers from both parties have been wary of new spending that favors industry after the Pentagon won a timely budget at record levels. “There's never been an appetite for defense stimulus from the parties that matter,” an industry source told Defense News. “I would be shocked if defense, being in neither of the two chambers' bills, ended up in the final bill.” Undercutting the argument that defense industry relief would immediately stimulate the economy, Lord said earlier last week that it will likely take five to six months before industry receives any reimbursements under the CARES Act. Lord also said that only 30 of the hundreds of defense subcontractors shuttered by the pandemic remained closed. Days ago, Lockheed Martin reportedly signed off on a 8.3 percent quarterly dividend increase to pay $2.60 per share and announced plans for an additional $1.3 billion share buyback. Lockheed is one of the main recipients of the Pentagon's accelerated payments to contractors, meant to boost cash flow to large and small defense companies during the coronavirus crisis. In May, Democratic lawmakers questioned Pentagon leaders about why they had spent just 23 percent of the $10.5 billion the department received under the CARES Act. The Pentagon responded with with its spending plan for the aid, which allocated $688 million to aid suppliers of aircraft engine parts, shipbuilding, electronics and space launch. Last week, key progressives, Reps. Marc Pocan and Barbara Lee, demanded an investigation and public hearings into that use of economic stimulus funding for defense contractors, calling it a “Pentagon misuse of COVID funds.” The Pentagon has refuted that characterization. https://www.defensenews.com/congress/2020/09/29/new-covid-bill-dampens-hopes-for-defense-industry-aid/

Valerie Insinna WASHINGTON — The Defense Department and Lockheed Martin reached a handshake agreement that will require the defense giant to invest about $70.6 million to fix an ongoing problem with F-35 spare parts, one that resulted in increased government labor costs, the department announced Sept. 29. For the past few months, Lockheed and the Defense Contracts Management Agency have been locked in a dispute over more than 15,000 F-35 spare parts sent to the U.S. military with incorrect or incomplete “electronic equipment logs” or EELs, which allow the parts to be absorbed into the F-35′s logistics system and installed on the jet. Lockheed and the Defense Contracts Management Agency expect a final agreement to be formalized sometime within the next two weeks or so, said DCMA spokesman Matthew Montgomery, who confirmed the $70.588 million deal to Defense News. The use of EELs — which allow the government to track the usage and lifespan of major F-35 parts — is unique to the joint strike fighter program and is meant to help inform smarter, more cost-effective maintenance and buying practices. But when parts are delivered with inaccurate EEL information, it can take hours for military maintainers and Lockheed support personnel to track down the correct data that will allow a part to be uploaded into the system and installed in the aircraft. Instead of paying back the government directly for the added costs associated with the EELs, Lockheed will “compensate the government with Lockheed Martin investments” that will ultimately ensure spare parts are delivered with accurate electronic logs, said Lockheed spokesman Brett Ashworth. “We appreciate the partnership with the Defense Contract Management Agency and the F-35 Joint Program Office, and we remain focused on ensuring the warfighter has the support they need to employ the F-35′s game changing capabilities,” he said. The final sum of the agreement is less than half of the $183 million sum that DCMA initially projected that the government had spent to correct wrong or incorrect EELs since 2015. It was not immediately clear why DCMA had agreed to a compensation deal worth so much less than the department's estimated costs. During a July hearing, lawmakers from the House Oversight and Reform Committee chastised Lockheed for its failure to deliver parts ready to fly. “That's $183 million that the American taxpayers were forced to pay because Lockheed Martin failed to meet the requirements of its contract,” said Rep. Carolyn Maloney, the committee's chairwoman. But Greg Ulmer, Lockheed's vice president for the F-35 program, said then that the company should not take all of the blame for the spare parts problems. “It's not all associated with Lockheed Martin performance. There are many aspects associated with [parts that are] not ready for issue,” he said. https://www.defensenews.com/air/2020/09/29/heres-what-lockheed-will-have-to-do-to-make-up-for-f-35-spare-parts-problems/