Nouvelles

By: Valerie Insinna WASHINGTON — Last week's deal between Boeing and the U.S. Air Force on a fix for the KC-46 could pave the way for the tanker to refuel other aircraft without a person needed to manually control the process, a top service official said Thursday. On April 2, Boeing agreed to fix the KC-46's troubled Remote Vision System by creating an overhauled RVS 2.0 with new hardware and software. Air Force acquisition executive Will Roper told reporters those changes would include the addition of 4K high-definition cameras that will display imagery in color as well as modern processors and LiDAR (light detecting and ranging) sensors that will help improve depth perception. “A proper RVS like that is right on the doorstep to autonomy,” Roper said. “All you have to do is take that data that tells the world inside the jet the reality of geometries between the airplane and the boom outside the jet. Once you have that, you simply need to translate it into algorithms that allow the tanker to tank itself.” The KC-46's Remote Vision System has been a thorn in the side of the aircraft program since 2017, when issues with the system were first discovered. The RVS is basically a suite of cameras, sensors and software that is supposed to allow boom operators sitting inside the aircraft to safety steer the boom into the aircraft needing fuel. But in certain conditions, the system produces distorted imagery that increases the risk of the boom hitting another aircraft. The new LIDAR system will be key to fixing that problem, said Roper, who likened it to a backup camera on a car that also provides cues to a driver for parallel parking or assessing whether a vehicle is aligned flush to a curb. “We'll have something very similar to that for the boom operators, so telling them are they left, right and how close are they getting to the airplane,” he said. “[It's] something very intuitive and easy to work with, and I think that will help significantly with them understanding their distance [from the other aircraft] because LIDAR is extremely accurate.” Because Boeing is locked into a firm fixed-price contract for the development of the KC-46, it will have to pay for the upgrade to RVS 2.0 out of its own pocket, as the Air Force maintains that the current system does not meet requirements. But the service is so confident in the prospect of using the RVS 2.0 as a stepping stone to an autonomous tanker that it included an option in last week's agreement to fund the development of technologies that enable autonomous or semiautonomous refueling. “We have added an engineering change proposal into the deal with a not-to-exceed threshold of $55 million, so that when RVS 2.0 is done, we can then take the next step beyond 2.0 to develop those autonomy algorithms and install them if we think we can certify them for safe use,” Roper said. “We took that step because, one, we're excited about being on the doorsteps of autonomy and, [two], we wanted to send a clear signal in the deal that this is our tanker for the future,” he said. If the Air Force decides to move forward with those design changes, more will need to be done to hammer out the contractual details, said Jamie Burgess, Boeing's KC-46 program manager. “There was no commitment one way or another on who pays for what. But there's definitely a strong partnership between Boeing and the Air Force as far as developing this technology,” he said. Autonomous refueling capability has been of increasing interest to the Air Force over the past few years, as sensing and artificial intelligence technologies grow by leaps and bounds. Boeing previously signaled it could include such technology as part of a menu of potential upgrade options for the KC-46, as reported by FlightGlobal in 2018. https://www.defensenews.com/air/2020/04/08/boeings-kc-46-tanker-now-has-a-pathway-for-autonomous-aerial-refueling

Shawn Snow A series of wargames conducted between 2018 and 2019 helped inform the Corps' decision to divest of tanks and outmoded units and equipment that will have trouble surviving in fight with peer adversaries like China, according to a Marine Corps force redesign report. From those wargames the Corps learned that the unit that shoots first has a “decisive advantage” on the battlefield and forces that can operate inside the range of enemy long-range precision fires “are more operationally relevant than forces which must rapidly maneuver to positions outside the ”weapons engagement zone, the report reads. The Corps' decision to divest of tanks, cut ground cannon artillery and light attack air platforms has stoked some criticism. Tanks historically have had success in high-end and urban warfare for decades boasting devastating firepower highly lethal to ground forces. But tanks and armored vehicles have had trouble surviving against the threat of precision strike and the plethora of drone and reconnaissance systems flooding conflict zones across the Middle East. For recent evidence, a Turkish launched operation targeting Syrian regime army troops in late February decimated more than a hundred tanks and armored vehicles, dozens of artillery pieces and hundreds of Syrian forces, according to the Turkish National Ministry of Defense. Turkey posted videos highlighting a mixed role of drones, Paladin artillery systems and aircraft pounding Syrian armor from the skies over the course of several days. The Syrian army appeared helpless to defend from the onslaught of long range systems. Even tanks camouflaged by buildings and bushes were no match for sensors and thermal imaging watching from the skies. The problem is exacerbated by the number of sophisticated anti-tank systems flooding counterinsurgency conflicts across the globe and access to long range drones once only in control by state actors are now being operated by militia groups. In Libya, the Libyan National Army has the upper hand in its drone war with the UN-backed Tripoli government. It's equipped with an alleged UAE-supplied Chinese drone known as the Wing Long II that boasts a 2,000 km range through a satellite link and is reportedly armed with Chinese manufactured Blue Arrow 7 precision strike air-to-surface missiles. “Mobility inside the WEZ [ weapons engagement zone] is a competitive advantage and an operational imperative,” the Marine Corps report reads. The Corps instead is looking for mobile systems and units that can survive within the reach of precision fires to “attrit adversary forces," create dilemmas for the enemy and “consume adversary ISR resources,” according to the report. “The hider-versus finder competition is real. Losing this competition has enormous and potentially catastrophic consequences,” the report reads. Reconnaissance and counter-reconnaissance capabilities will be key on the modern battlefield. “We have sufficient evidence to conclude that this capability [tanks], despite its long and honorable history in the wars of the past, is operationally unsuitable for our highest-priority challenges in the future,” the report said about the divestment of Marine tanks. But tanks aren't disappearing from the fight. The Corps says heavy ground armor will still be provided by the Army. The Corps says it plans to develop heavily into unmanned ground and air systems and rocket artillery and long range fires. According to the report, the Corps is increasing its rocket artillery batteries by 14 to 21 over a 10-year period. Wargaming that inferred the Corps' force redesign efforts were carried out by the Marine Corps Warfighting Lab, U.S. Indo-Pacific Command, among others. https://www.marinecorpstimes.com/flashpoints/2020/03/26/the-marines-want-to-get-rid-of-their-tanks-heres-why

Kelsey D. Atherton Designing a drone body is about settling on the right compromise. Multirotor drones excel at vertical lift and hover, while fixed wing drones are great at both distance and wide-open spaces. In February, Auterion Government Solutions and Quantum-Systems announced a two-pronged approach to the rotor- or fixed-wing drone market, with a pair of drones that use the same sensor packages and fuselage to operate as either the Scorpion Trirotor or the Vector fixed wing craft. “As we started to develop our tactical UAS Platform, our plan was only to develop a VTOL fixed wing solution (like our Vector),” said Florian Siebel, managing director of Quantum-Systems. “During the development process we decided to build a Tri-Copter Platform as well, as a result of many discussions with law enforcement agencies and Search and Rescue Units.” Adapting the fixed-wing fuselage to the tri-copter attachments means the drone can now operate in narrow spaces and harsh conditions. Scorpion, with the rotors, can fly for about 45 minutes, with a cruising speed of zero to 33 mph. Put the fixed wings back on for Vector, and the flight time is now two hours, with a cruising speed of 33 to 44 mph. The parts snap into place without any need for special tooling, and Auterion recommends the drone for missions in rain or snow. Both platforms share a gimbal EO/IR with 10x optical zoom, 720p EO video, 480p IR video, laser illuminator, IR laser ranger. Common between modes is also a tactical mapping tool using a 21 megapixel Sony UMC R10C camera. For the scorpion, there's also the option of a gimbaled electro-optical camera with a 30x optical zoom. Both drones are designed to fit in rucksacks that a person can carry one at a time. While many features are common across Vector and Scorpion, the plan is not to include both rotors or wings in the same kit. Once a team packs into the field with a drone on its back, that's the mode the drone can be used in. Auterion intends to ship the drones by the fourth quarter of 2020, with preorders available. Designing a drone body is about settling on the right compromise. Vector and Scorpion are built on top of open source code. This includes an operating system capable of programmable autopilot , as well as machine-vision collision prevention and obstacle detection and avoidance. Software for the ground station and cloud data management of the drone are also built on open source code. The Pentagon's Defense Innovation Unit awarded Auterion a $2 million contract last year to work on the PX4 software to help drive compatibility standards in the drone industry. As militaries across the world look to the enterprise sector for capable drones at smaller profile than existing military models, transparency in code and flexibility in airframe could become more widely adopted trends. In the meantime, there is Vector, and there is Scorpion. https://www.c4isrnet.com/unmanned/2020/03/25/open-source-platforms-flexible-airframes-for-new-drones

By: Valerie Insinna WASHINGTON — The Air Force is looking for a replacement to the stalwart MQ-9 Reaper and intends to explore options ranging from commercial drones built by emerging tech firms to high-end unmanned aircraft, the service's top acquisition official said Tuesday. Will Roper, the Air Force's assistant secretary for acquisition, technology and logistics, said the service is working on a study that will inform the fiscal 2022 budget and lay out a path for replacing the MQ-9 Reaper made by General Atomics. "The Reaper has been a great platform for us. Four million flight hours, just undeniable overmatch in a low-end uncontested fight, and it is certainly saving lives,” Roper told lawmakers at a House Armed Services Committee hearing. “But as we look to the high end fight, we just can't take them into the battlefield. They are easily shot down.” The MQ-9 Reaper and its precursor, the MQ-1 Predator, have been the Air Force's workhorse drones in the Middle East over the past two decades, providing both real-time video surveillance and the ability to strike targets. But looking forward, the Reaper is ill-suited to a war with Russia and China while at the same time seen by the Air Force as requiring too much money and manpower to sustain for continued operations in low-threat environments. There likely won't be a single, one-size fits all solution for replacing the MQ-9, Roper said. The Air Force may need drones that “are more high-end, military-unique” systems, and “they'll likely be expensive,” he acknowledged. There may also be room for unmanned attritable aircraft, which are reusable but are cheap enough that they can be shot down in battle without incurring massive financial losses. For lower-end missions, the Air Force sees promise in the emerging unmanned systems market, where new entrants have begun creating long-loiter drones for applications in agriculture, communications and the oil and gas sector. “A lot of companies are targeting that market, not thinking about defense because we've been buying Reapers forever,” Roper said, who added that by buying from promising commercial drone makers, Air Force may be able to influence those companies to keep their supply chains out of China and to incorporate military-specific features — potentially even weapons. “I think if we do the program right on the commercial side, we might be able to bring a new entrant into defense without making them a defense prime,” he said, adding that funding from the Air Force could help a commercial company move from making prototypes to building up a stable production line that could further be grown to manufacture drones on a more massive scale. “Working with the Defense Department, you don't need the kind of production capacity that the globe does. So, we're a pretty good first stop,” he said. However, the Air Force may face an uphill battle in getting Congress to support a plan to replace the Reaper. The service in its FY21 budget request has asked for 24 more MQ-9s before ending the programs of record — a move that would curtail the program from 363 to 337 Reapers. The early shutdown of the line would have major financial implications for General Atomics, said Chris Pehrson, the company's vice president of strategic development, in a February interview with Air Force Magazine. “We're actually going out about 22 months ahead of delivery and procuring the long-lead item parts, ... whether it's [satellite communication] equipment or engines ... to negotiate the best prices and get the best deals for the government,” Pehrson said. “Having the rug pulled out from under your feet at the last minute kind of disrupts all your supply chain investments that you're making.” Top generals in the Middle East and Africa have also raised concerns about the demands for intelligence, surveillance and reconnaissance and privately helped stave off retirements of the MQ-9 by the Air Force in FY21. In its unfunded wish list, U.S. Central Command included additional contractor-flown MQ-9 hours as its number one priority, at a cost of $238 million. https://www.defensenews.com/air/2020/03/12/could-a-commercial-drone-replace-the-mq-9-reaper-the-air-force-is-considering-it

President Trump has authorized only 34 states to receive federal funding and benefits for their Guard troops. While all of them get paid -- many out of rapidly depleting state coffers -- most aren't yet getting full health coverage. By SYDNEY J. FREEDBERG JR WASHINGTON: Legal arcana and the narrow wording of President Trump's orders are complicating the mobilization of National Guard troops to combat the COVID-19 coronavirus. The Pentagon, the White House, and the states are working urgently to increase the number of troops with federal funding and full benefits, said Gen. Joseph Lengyel, the four-star chief of the National Guard Bureau, in a phone briefing with reporters this afternoon. Part of the problem is that President Trump has not actually authorized federal funding and benefits for every state. Only 34 states and three territories are currently covered by his call-up orders, with 16 states and the District of Columbia still ineligible. (The full list is at the end of this article). Indeed, it's not clear that all states have even requested federal support for their Guard troops, especially in rural areas where the spread of the virus has been slower and suspicion of the federal government can be high. Even once the president authorizes a given state, FEMA must still approve each request for funding. Finally, until yesterday, President Trump's orders only permitted Guard troops to operate under federal orders for up to 30 days – one day too short to qualify for federal health coverage and other benefits. So how many servicemembers are affected? 28,400 personnel from both the Army and Air National Guard have been called up to help with the pandemic, Lengyel reported, a figure that's now rising by more than 1,000 troops every day. However, more than 13,000 of those troops are currently mobilized under state legal authorities, at their states' expense. While their pay in this status is usually consistent with federal payscales — some states are less generous – their benefits are typically limited to basic workers' compensation. Worse, whatever they get may not be sustainable since state coffers are being rapidly depleted by the crisis. Not quite 11,000 are currently mobilized under Title 32, Section 502(f), which allows state governors to retain command-and-control of their Guard in local emergencies but provides federal funding – a number that is “growing rapidly,” Lengyel said. But even among Guard troops on those federal Title 32 orders, it appears that most don't yet enjoy the same benefits as members of the regular active-duty military and reserve working alongside them. In particular, most Guard troops aren't getting the Basic Allowance for Housing (BAH), which helps troops on duty far from home pay for lodging if the military can't provide it, and they don't get access to the military's nationwide healthcare network, Tricare. (Guard troops can go to military hospitals for free, but few of the coronavirus hotspots they've been called to are anywhere near a base). Some 349 Guard troops have tested positive for COVID-19, although many of those were infected in civilian life and aren't being called up. Why aren't all troops on federal orders already? And why aren't all the troops on federal orders getting full benefits? That has to do with the often-obscure laws governing the National Guard and the way President Trump has chosen to invoke them. First, Trump hasn't yet authorized federally funded Title 32 call-ups across the country. Instead, on March 22, he authorized them only for Washington State, California, and New York – the three initial hotspots – and then began adding states a few at a time in subsequent orders on March 28, March 30th, April 2nd and April 7th. “FEMA generally gives shorter duration mission assignments, normally two weeks,” Lengyel explained, since most domestic disasters take less than a month to resolve. “We in the National Bureau and the Department of Defense saw this [coronavirus] clearly is going to go into May and maybe beyond, [but] FEMA was restricted [in] writing the mission assignments to what was authorized in the presidential memorandum. “I don't want to speculate on why they chose 30 days, but the difference between 30 and 31 is significant,” the general said. “We recommended a longer period of time at the beginning.” The National Guard Association of the US, an influential independent advocacy groups for Guard units, members, and families, has been watching the situation intently and pressing for an expansion of the Title 32 orders. Consistency has been lacking, lamented John Goheen, NGAUS's chief spokesman: “It's really a patchwork as you look around the country, and states are going to interpret things differently. “Section 502(f) of Title 32 was never designed for this. As a result, we are seeing of lot of bureaucratic obstacles and inflexibility,” Goheen told me this afternoon. “Case in point is the limitation on the number of days. NGAUS will be looking to change the law in the future to provide more flexibility.” The last time Title 32 was used on such a scale was Hurricane Katrina, Goheen said “There were some concerns [after Katrina] about the Defense Department being reimbursed so the Defense Department's been reluctant to use it,” he said. However reluctant the Pentagon bureaucracy in general may be, Gen. Lengyel made clear he is trying to fix the situation. “We're authorized now to bring on up to 44,000 total members of the National Guard covered under ...Title 32 ... which gives them federal pay but state control, and now — because the [April 7th] memorandum allows them to be covered for up to 31 days — they will have full insurance and medical benefits,” he said. But troops who were authorized earlier on shorter orders will have to be switched to 31 days, and making sure all new call-ups are for 31, is an ongoing process, Lengyel acknowledged: “There was some sand in the gears on making sure that we had the cost figures right so that FEMA had the exact numbers.” Meanwhile, he said, his staff and the states have started planning for the annual hurricane season. “By hurricane season, which starts in June, obviously, we're hopeful this begins to lull,” he said, “[but] we in fact are looking at implications of what it might be like to do a hurricane response in a COVID environment.” His staff and the states Guard headquarters, he said, are conducting their planning by telephone and video-teleconference (VTC) instead of the usual in-person meetings. Below is the full list of which states President Trump authorized for federally-funded National Guard callups, by date: March 22, three states: California, New York, and Washington. March 28, five states and two territories: Florida, Louisiana, Maryland, Massachusetts, and New Jersey; Guam and Puerto Rico. March 30, three states: Connecticut, Illinois, and Michigan. April 2, 10 states, one territory: Georgia, Hawaii, Indiana, Missouri, New Hampshire, New Mexico, Ohio, Rhode Island, Tennessee, and Texas; US Virgin Islands. April 7, 13 states: Arizona, Colorado, Kentucky, Mississippi, Montana, Nevada, North Carolina, Oregon, Pennsylvania, South Carolina, Virginia, Wisconsin, and West Virginia. https://breakingdefense.com/2020/04/covid-19-federal-funds-benefits-lag-for-national-guard

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

Vivek Saxena “You never know who's swimming naked until the tide goes out.” I am reminded of Warren Buffett's words in the climate created by the coronavirus pandemic. Aerospace manufacturers that are lean, use enabling technologies and have a robust business continuity plan will stand tall in tough times. Conversely, inefficient companies that have ridden the gravy train of the aerospace supercycle will suffer. I will share a few best practices that should help industry prepare for the long haul, using an admittedly unscientific survey of multiple manufacturers in various tiers to assess how the aerospace supply chain is coping with the triple whammy of reduced demand, weakened productivity and increased supply chain distress. I asked, how are they dealing with dwindling attendance, regulatory confusion and the decoupling of remote support staff from the production staff? Leadership and communication matter more than ever. While liquidity remains the mantra, no factory can succeed without motivated employees. Shop floor attendance is dropping, depending upon the proximity to COVID-19 “hot spots” and, more important, the leadership's success in engaging with employees. We have already observed a 25% average drop in attendance at many suppliers. On the other hand, Click Bond CEO Karl Hutter reports little impact and is even expecting a record month. He set up a mission control office early and deployed an intranet system to communicate with employees. He calls this a “high-fidelity single source of truth about our people and our operations.” Another innovation is mobile check-in/check-out for employees at each building, allowing for a quick triage if necessary. The CEO of a California forger reports a slight improvement in attendance despite the COVID-19 outbreak in the state, owing to “honest communication and employees taking pride in working at a designated critical service.” The terms “critical infrastructure” and “essential business” have been thrown around without much explanation, sowing confusion among suppliers. Marotta Controls CEO Patrick Marotta took the lead in calming his suppliers. “Suppliers were especially appreciative when we communicated the [Defense and Homeland Security] memos classifying the defense industrial base as critical infrastructure,” Marotta said. Lean enables social distancing. Plants with a deeper lean culture have already implemented manufacturing cells. Lean enables operators to run multiple machines in their dedicated cells with minimal interaction with other areas. Consider Woodward's new plant in Rockford, Illinois, where instead of a large furnace, self-contained cells are situated with right-size furnaces. This design eliminates all unnecessary material and personnel movement at a shared service such as a large furnace. Additionally, closed-loop quality control preempts back-and-forth between inspectors and machinists. Technology is a friend. Protolabs in Minnesota is a great example of digital manufacturing. Plants with lights-out machining capability can scale the technology across all shifts, filling in for absent employees. Machine monitoring and the Internet of Things are especially helpful for remote support staff. Shops with a higher degree of automation will obviously see less of an attendance impact. Data analytics dashboards are a great enabler for remote production meetings. An OEM told us its supply chain organization was fully prepared to work remotely since its business continuity plan called for a system for executing and monitoring remote activities. A Tier 1 told us about a recent investment in information technology systems that is now paying off handsomely for remote operations. Now is an opportunity to catch up and come out stronger. The industry will find a way, says Nycote President Marcie Simpson. She is “impressed with the level of communication and transparency. . . . It seems as though everyone is innovating ways to ensure supply chain continuity.” The best-case scenario is that industry comes out of this crisis in about 12 months with moderately reduced demand and the Boeing 737 MAX back in service. The supply chain will then be functioning better, because the intervening period will have been used to catch up on past issues. For example, the engine supply chain can wrinkle out the kinks that have hobbled engine manufacturers. They can use the respite to address the early shop visit issues and develop much-needed repairs for new engines. Lower tiers would be well-advised to use this time to focus on operational excellence and technology implementation. Vivek Saxena is the managing director at Advisory Aerospace OSC, a consultancy focused on operations and supply chain. https://aviationweek.com/aerospace/manufacturing-supply-chain/opinion-aerospace-manufacturing-time-covid-19

By: Valerie Insinna and Aaron Mehta WASHINGTON — On the morning of April 2, companies up and down the Pentagon's supply chain got an email from Eaton Aerospace, a mid-tier supplier that provides parts such as fuel pumps and hydraulics to defense primes for aircraft like the KC-46 tanker and F-35 Joint Strike Fighter. “The truly unprecedented situation with [the coronavirus] COVID-19 is jointly affecting our business, families and communities we live in,” said one such email, which was obtained by Defense News. “While the health and safety of our employees and those of our supply partners remains paramount, our industry is significantly impacted. ... As a result, our Eaton Grand Rapids, [Michigan], plant will [be] closed starting April 4, 2020 and will reopen on April 13, 2020." Similar emails for other locations followed. In a statement, Eaton Corp. spokeswoman Margaret Hagan acknowledged that the company was temporarily implementing closures “at a few sites,” but maintained that there would be no impact to the “critical support” provided to the U.S. military. “We've made the important decision to maintain operations during the COVID-19 crisis because Eaton products are critical to our global infrastructure,” she said. “As a strategic supplier of aerospace fuel, hydraulic, motion control, electrical and engine solutions for the aerospace and defense sector globally, Eaton's aerospace products and support services are vital not only to the military, but to the transport of passengers and goods around the world.” Although perhaps not a household name in the defense sector, Eaton is far from a small business, bringing in more than $21 billion in sales in 2019. However, the quiet closure of its production lines illustrates how widespread the impacts of COVID-19 have reached — past the major prime contractors like Boeing, or even its major subcontractors like Spirit AeroSystems, and to the large and small companies that populate the middle and lower tiers of its supply chain. “The whole supply chain is a mess right now,” said an employee of one electronics manufacturer that provides components for both commercial and defense products. The source, whose name and company affiliation Defense News is withholding to protect the individual from reprisal, described challenges with working from home and retaining workers on the production line. Some colleagues, the source said, are choosing to take paid leave or voluntary layoffs rather than risk exposure to COVID-19. “We are at 20 percent capability,” the source said. According to Jeremy Bash, a former Pentagon official now with Beacon Global, “there is deep concern among industry and department leaders that the second- and third-tier suppliers need to be protected." “There's a sense DoD [the Department of Defense] needs better visibility into the supply chain, mapping out how a part makes its way into a plane or ship," Bash added. “There is a growing number of tech companies providing software to illuminate supply chains, and since COVID, the phones of those companies have been ringing off the hook because the department now realizes supply chain concentration is a huge risk.” ndustrial shock waves But one doesn't have to dive down the supply chain toward Eaton to see that the defense market is taking a beating, particularly the companies that also have a strong exposure to the commercial market. Up until last month, financial analysts would have seen commercial sales as a major boon to the overall health of a defense supplier, but that has changed, as the economy has taken a nosedive, said Richard Aboulafia, a defense and aerospace analyst with the Teal Group. “The commercial market is under siege, which means of course there is excess inventory, slumping revenue, major challenges on many levels,” he said. "On top of that, everybody faces the immediate impact of social distancing and workforce concerns. And on top of that, if you're heavily exposed to commercial, the harder time you might have getting credit. All of these are big issues. "The defense-industrial base, if it could somehow be removed from commercial aviation, we'd be in pretty good shape by the standards of the world economy. But we can't. They're intertwined.” Bloomberg reported Monday that Airbus sent a letter to employees over the weekend, warning that gaps in the supply chain, among other issues, will impact the company's ability to resume normal operations. Also on Monday, simulation firm CAE announced it was temporarily laying off 2,600 of its 10,500 global employees, while placing another 900 employees on a reduced work week. The company also instituted salary freezes and reductions for remaining staff, ranging from 50 percent for the CEO and executive team down to 10 percent for regular employees. Roughly 40 percent of CAE's overall revenue comes from defense contracts, according to the Defense News Top 100 list. Boeing, meanwhile, extended a shutdown of its Puget Sound, Washington, facilities, while also stopping work at its rotorcraft production line in Philadelphia, Pennsylvania. As a result of the Puget Sound shutdown, Spirit AeroSystems announced last week that it is halting work at a number of locations. Small businesses that form a core of the Pentagon's future technological development may be particularly vulnerable, according to government data and analytics firm Govini. In a new data sheet, the company noted there are roughly 50,000 small businesses that provide innovation support for the DoD, all of which is vulnerable to economic upheaval. “If this ecosystem suffers widespread failure due to COVID-19, the resulting impact will stretch well beyond short-term disruptions,” Govini said. “These vendors are not just critical links in the DoD supply chain important for immediate purposes. They are also vital for the development of both next-generation systems in the midterm and revolutionary capabilities that will shape the competitive landscape for decades into the future.” Between fiscal 2015 and fiscal 2019, roughly 28 percent of defense spending on underwater unmanned vehicles — a key part of the U.S. Navy's plan to build a fleet of the future — went to small businesses, according to Govini numbers. Small business contracts also accounted for 30 percent of the DoD's research on artificial intelligence during that same time period. Martijn Rasser, a senior fellow at the Center for a New American Security, warned Defense News last month that “for small business, a shutdown would be extremely difficult to get through because even with bailouts and economic stimulus, once those businesses close up, its really hard to get those started again.” “If an airline goes out of business, the planes don't disappear — you can start over. If it's a highly specialized manufacturing company, those employees are going to disperse and try to find other work. So I think that's something to be very cognizant of because of all the consolidation in the defense industry,” he added. “If they have to curtail operations for an extended period of time, it's extremely difficult to get it going again.” What's the Pentagon's response? Starting March 20, the Pentagon began issuing guidance on how to support industry. But a three-day span last week showed how those efforts remain a moving target, particularly in relation to the smallest suppliers. On March 30, the department's acting director of defense pricing and contracting, Kim Herrington, issued guidance to contracting officers that essentially said industry should not be penalized for missing performance targets as a result of the ongoing pandemic. “We must do our utmost to ensure that both the Department and the vital industrial base that support us remain healthy for the duration of this emergency and emerge as strong as ever from the challenges of this pandemic,” Herrington wrote. But some in Congress feel the department is still not doing enough to clarify policy changes for contracting officers and defense companies. On April 1, a group of Ohio lawmakers wrote to Defense Secretary Mark Esper and Under Secretary of Defense for Acquisition and Sustainment Ellen Lord, warning that “we are concerned that guidance to the defense contractor workforce remains ambiguous and lacks uniformity in application,” particularly in terms of communication from department contracting officers to small companies. Over the past several years, the Pentagon has worked to delegate decision-making authorities to low-level contracting officers. But while that may work to empower contracting officers to find creative solutions to problems under normal circumstances, during a pandemic, these officials are ill-prepared to decipher “uncertain, often conflicting guidance,” the lawmakers said. The lawmakers asked that contracting officers be directed to ensure that contractors are allowed to work remotely to the maximum extent possible; that contractors be given “maximum flexibility to meet their contractual obligations”; that efforts be made to not have “avoidable reductions” in the workforce; and that companies involved in research and development work be clearly labeled as essential personnel. And on April 2, two trade groups — the National Defense Industrial Association and the Professional Services Council — asked Congress to instate a six-month delay for a legal requirement included in the 2019 National Defense Authorization Act that prohibits the government from doing business with companies that work with vendors Huawei and ZTE. That language “will impose significant financial and operational costs on medium- and small-sized firms at a moment of substantial uncertainty and hardship,” at a time when they are dealing with the economic impact of the coronavirus pandemic, the letter stated. Later in the day, the DoD released a statement providing clarification on previous announcements. The department confirmed that higher progress payment rates — which had been jumped the previous week — will apply to already completed work, and not just future production. The new cash-flow rules should result in more than $3 billion in new cash moving into industry, according to department estimates. But that prediction came with a warning: The Pentagon “has high expectations that that prime companies are ensuring cash flow is moving to small businesses in their respective supply chains who need it most.” So far, the Defense Contract Management Agency has modified approximately 1,400 contracts with increased rates, the announcement noted. Contracting officials are working to ensure invoices at the higher progress payment rate keep arriving on time, with the department claiming there have been “no reported delays on contractor submitted invoices.” The announcement also stated that any delay related to COVID-19 issues will result in “an equitable adjustment of the contract schedule and cost,” meaning the department will adjust the contracts so that the vendor does not take an economic hit. The steps taken by the department are important, said Bash, the former Pentagon official. “The most powerful force the government can bring to help these companies is to say to industry: ‘We have money,' ” he said. A wildcard, Bash noted, is the $17 billion in national security-focused funding made available under the most recent stimulus package passed by Congress. However, Byron Callan, an industry analyst with Capital Alpha Partners, warns that more money doesn't necessarily mean less problems. “The DoD faces the same issues as any other branch of the government or the Fed that is providing more cash to address the crisis — if people aren't at work because of COVID-19, that cash won't help much in keeping a factory or office open and all projects on schedule," Callan said. For Aboulafia, increasing the value of progress payments is a good first step for increasing the flow of cash to suppliers. “In times like this, it really is about access to cash because of the risk of credit markets freezing up for commercial companies. Accelerated payments, maybe loan guarantees should be considered," Aboulafia said. But he's realistic that the defense industry isn't the only issue on the table for the Trump administration. “I think there's a lot that government can do,” Aboulafia said. "Unfortunately there's a lot that government has to do because the entire economy has been put into a medically induced coma.” https://www.defensenews.com/coronavirus/2020/04/08/the-pentagons-supply-chain-faces-an-economy-under-siege

April 2, 2020 - The photonics group Jenoptik will supply infrared optical components to Rheinmetall between 2020 and 2025. The framework agreement recently concluded with the German company for defense and security technology is worth a high single-digit million euro amount. The deliveries include custom-developed infrared optics of high quality and precision for use in land vehicles to protect soldiers in action. Jenoptik is a leading manufacturer of optical components and systems for the infrared spectral range, focusing on OEM solutions tailored to individual customer requirements. Here the company draws on many years of broad-based expertise in the manufacture of optics and their coating to protect and improve the quality of such optical elements. About Jenoptik Jenoptik is a globally operating technology group, which is active in the three photonics-based divisions Light & Optics, Light & Production and Light & Safety. Optical technologies are the very basis of our business with the majority of our products and services being provided to the photonics market. Our key target markets primarily include the semiconductor equipment industry, the medical technology, automotive and mechanical engineering, traffic, aviation as well as the security and defense technology industries. Jenoptik is listed on the Frankfurt Stock Exchange, has more than 4,100 employees and generated revenue of approx. 855 million euros in 2019. Contact Sabine Barnekow Manager Investor Relations +49 3641 65-2156 +49 3641 65-2804 View source version on Jenoptik : https://www.jenoptik.com/press/pressreleases/2020/04/02/infrared-optics-order