Nouvelles

By: Aaron Mehta WASHINGTON — If Ukroboronprom is to continue as anything more than a local defense firm, the Ukrainian conglomerate will need to find industrial partners abroad, according to director general Aivaras Abromavicius. And attracting those foreign investors will be nearly impossible without a set of needed reforms to the government-owned company, Abromavicius warned Tuesday— reforms he acknowledged seem to be stalling out at the government level. “Western investors and Western companies are very sophisticated and they're very smart. You know, Ukroboronprom for years has had a tainted reputation,” Abromavicius said at an event hosted by the Atlantic Council. “So it is very clear that almost no Western company of any reputation and size is interested in directly acquiring any assets in the defense sector in Ukraine because of the reputational risks.” That is one of the many reasons Abromavicius is pushing reforms of the company, whose questionable reputation was further damaged by a massive scandal in 2019 involving executives receiving kickbacks on parts smuggled in from Russia. The scandal rocked Ukrainian politics, with some arguing it was a major factor in the loss of the presidency by Petro Poroshenko. President Volodymyr Zelenskiy, inaugurated in May 2019, launched an effort to clean up the mess, which included appointing Abromavicius, a former minister of economy and trade, to oversee a reorganization of the company. Abromavicius, who is pushing a full financial audit of the company alongside a potential reorg of its business units, stressed that “we need to raise governance standards to completely different levels,” factoring in increased transparency, if the company is to have any hope of working with nations abroad. And, he said, Ukroboronprom needs partnerships to survive as anything other than a local, small concern. “The way forward for us is to do joint ventures,” Abromavicius said. “Obviously the way forward is just to set up production facilities in Turkey, in India, you now, United Arab Emirates, whereby our [intellectual property] and their financial resources [combine] together to produce for the domestic and global needs.” While acknowledging that U.S. firms are reluctant to work with Ukroboronprom given its history, such a tie-up would be cheap for any of the major American defense companies, said the Atlantic Council's Michael Carpenter. And, he warned, the American government may soon have a major geopolitical incentive to try and push a Lockheed Martin or Raytheon to work with the Ukrainians. “With the economic chaos that's being wrought by the COVID-19 pandemic, I predict you will see China moving into a lot of countries in Eastern Europe and looking to buy up distressed assets at bargain prices, and it's going to be crucial that when Ukroboronprom looks for outside investors or looks for doing joint ventures, that U.S defense industry is poised to partner, and to invest,” Carpenter said. “It's going to be very important for, I think, the U.S. government also to push our defense industry a little bit to look at this as an opportunity,” continued Carpenter. “It's going to be important from a sort of strategic sense not to allow this industrial base to get snapped up by Chinese or other countries that are going to be, frankly, operating in a predatory manner in the months ahead, and that we allow for that matchmaking, not just with U.S. firms but with European firms as well to go forward.” While not directly tied to defense matters, Boeing is reportedly considering some sort of team up with Antonov on the cargo side, with the Ukranians pushing for a formal joint venture. Beijing, meanwhile, has attempted major inroads in Ukraine, with Chinese aerospace firm Skyrizon attempting to purchase a controlling stake in engine manufacturer Motor Sich and the Tianjiao Aviation Industry Investment Company attempting to purchase a chunk of the Antonov facility which produced the An-225 Mriya. China has emerged as a major economic trading partner with Ukraine in the years since Kyiv cut off relations with Russia. (Antonov falls under the Ukroboronprom umbrella.) Pentagon acquisition head Ellen Lord has warned several times since the COVID-19 pandemic began that the DoD needs to be keeping an eye on both the domestic and foreign defense industry, with the expectation China will attempt to use the economic downturn to its advantage. “Western allies took a backseat, ignored the Ukrainian defense sector, and you know, [the] Chinese stepped in and snapped up the best of the private companies in this sector in Ukraine,” said Abromavicius. “So I would urge, obviously, our allies to take a better look at the defense sector which is being reformed right now in Ukraine. And, you know, show us, show more interest in doing things together.” While Zelenskiy came into office promising major reforms to the country, activists have accused his government of stalling out on many of the promised efforts. Abromavicius “fully” acknowledged that the reorganization of Ukroboronprom has slowed recently, saying he hopes Western officials can “give it a kick” to get things moving again, but he expressed his hope that in the coming weeks there may be legislative action. “So it is a bit too early to say that we have a full support, because I say that everybody and their dog has its own view of what Ukroboronprom reform should look like,” he said. “And I think overall, the Defense and Security Committee is a strong supporter, Ministry of the Economy is a strong supporter, I believe that president's offices as well. And I hope that Ministry of Defense is on our side” soon, he said. https://www.defensenews.com/global/europe/2020/05/20/scandal-ridden-ukroboronprom-seeks-fresh-start-in-ties-with-western-arms-makers

Steve Trimble May 20, 2020 The U.S. Air Force has kicked off a three-way competition to re-engine the entire 76-aircraft B-52 fleet from 2021 to 2035. The request for proposals (RFP) released on May 19 invites bids from GE Aviation, Pratt & Whitney and Rolls-Royce to supply 608 engines to replace each of the eight, 60-year-old, 16,000 lb.-thrust P&W TF33 turbofans on the heavy bomber. GE can choose between the CF34 or Passport engine or offer both. P&W has proposed the PW800. Rolls-Royce will offer a military version of the BR.725. The Air Force RFP lays out a two-step selection process. In step one, companies must submit “virtual” prototypes of their engine, meaning a digital design with integrated models for manufacturing, performance and sustainment. Step 2 calls for the traditional engine source selection process, which will be informed by the data from the virtual prototypes and an integration risk analysis completed in the first step. The Air Force has said the TF33 engines that now power the B-52 cannot be sustained practically beyond 2030. The Cold War jet, meanwhile, is expected to continue operating beyond 2050, outliving the B-2 and B-1B fleets scheduled for retirement in the 2030s. Armed with a new class of hypersonic and long-range missiles, including the nuclear Long-Range Stand-Off Weapon, the B-52 will perform the standoff mission, while the B-21 penetrates into contested airspace. https://aviationweek.com/defense-space/aircraft-propulsion/usaf-opens-bidding-phase-b-52-re-engine-competition

NAVY Viasat Inc., Carlsbad, California, is awarded a $998,828,164 maximum potential value, indefinite-delivery/indefinite-quantity contract for the production, retrofits, development and sustainment of the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio Systems (JTRS) terminals. Currently, there are three variants of MIDS JTRS terminals: the Concurrent Multi-Netting-4, the Tactical Targeting Network Technology and the F-22 variant. Work will be performed in Carlsbad, California, and these terminals will continue to be procured, sustained and updated for future growth, including JTRS advanced networking waveforms such as: multifunction advanced data link, intra-flight data link and other advanced networking waveforms. The MIDS JTRS terminal is a line-of-sight radio system for collecting and transmitting broadband, jam-resistant, secure data and voice across a variety of air, sea and ground platforms. Work is expected to be complete by May 2025. Funds in the amount of $48,280,914 will be placed on contract and obligated on the first delivery order concurrent with contract award, which will meet the minimum order requirement. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $8,223,208; and other procurement (Navy) funds in the amount of $1,532,559 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 aircraft procurement (Air Force) funds in the amount of $12,135,592; other procurement (Air Force) funds in the amount of $1,645,504; and research development test and evaluation (Air Force) funds in the amount of $205,688 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 defense-wide procurement in the amount of $1,234,128; and defense National Guard and reserve equipment in the amount of $2,673,944 will be obligated at time of award and will not expire at the end of the current fiscal year. Non-appropriated funds for Foreign Military Sales (FMS) in the amount of $15,015,224; and foreign cooperative programs in the amount of $617,064 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2018 aircraft procurement (Air Force) in the amount of $3,702,384; and other procurement (Navy) in the amount of $1,295,619 will be obligated at time of award and will expire at the end of the current fiscal year. This contract combines purchases for the Navy, Air Force and MIDS Program Office, as well as purchases for NATO and all NATO nations under the FMS program. This contract was competitively procured, and two proposals were received. The Naval Information Warfare System Command, San Diego, California, is the contracting authority and awarded the contract on behalf of the MIDS Program Office (PMA/PMW-101) (N00039-20-D-0058). Data Link Solutions LLC, comprised of BAE, Wayne, New Jersey; and Collins Aerospace, Cedar Rapids, Iowa, is awarded a $998,828,164 maximum potential value, indefinite-delivery/indefinite-quantity (IDIQ) contract for the production, retrofits, development and sustainment of the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio Systems (JTRS) terminals. Work will be performed in Cedar Rapids, Iowa (50%); and Wayne, New Jersey (50%). Currently, there are three variants of MIDS JTRS terminals: the Concurrent Multi-Netting-4, the Tactical Targeting Network Technology and the F-22 variant. These terminals will continue to be procured, sustained and updated for future growth, including JTRS advanced networking waveforms such as: multifunction advanced data link, intra-flight data link and other advanced networking waveforms. The MIDS JTRS terminal is a line-of-sight radio system for collecting and transmitting broadband, jam-resistant, secure data and voice across a variety of air, sea and ground platforms. The ordering period for this IDIQ contract is through May 2025. Funds in the amount of $64,137,404 will be placed on contract and obligated on the first delivery order concurrent with contract award, which will meet the minimum order requirement. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $10,970,335; other procurement (Navy) funds in the amount of $1,802,447; and ship construction procurement (Navy) funds in the amount of $195,965 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 aircraft procurement (Air Force) funds in the amount of $16,461,060; other procurement (Air Force) funds in the amount of $1,959,650; and research development, test and evaluation (Air Force) funds in the amount of $1,175,790 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 defense-wide procurement in the amount of $1,567,720; and defense National Guard and reserve equipment in the amount of $3,331,405 will be obligated at time of award and will not expire at the end of the current fiscal year. Non-appropriated funding for Foreign Military Sales (FMS) in the amount of $20,598,117; and foreign cooperative programs in the amount of $979,825 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2018 aircraft procurement (Air Force) in the amount of $5,095,090 will be obligated at time of award and will expire at the end of the current fiscal year. This contract combines purchases for the Navy, Air Force and MIDS Program Office, as well as purchases for NATO and all NATO nations under the FMS program. This contract was competitively procured, and two proposals were received. The Naval Information Warfare System Command, San Diego, California, is the contracting authority and awarded the contract on behalf of the MIDS Program Office (PMA/PMW-101) (N00039-20-D-0057). Intercontinental Construction Contracting Inc.,* Passaic, New Jersey (N40080-20-D-0011); FBGC JV LLC,* Hampton, Virginia (N40080-20-D-0012); Pontiac Drywall Systems Inc.,* Pontiac, Michigan (N40080-20-D-0013); Maclean-Ocean JV LLC,* Bethesda, Maryland (N40080-20-D-0014); RAND Enterprises Inc.,* Newport News, Virginia (N40080-20-D-0015); and Aimcon Design Build LLC,* Harvey, Louisiana (N40080-20-D-0016), are awarded $99,000,000 for an indefinite-delivery/indefinite-quantity, multiple award design-build/design-bid build construction contract for construction projects located primarily within the Naval Facilities Engineering Command (NAVFAC) Washington area of responsibility (AOR). All work on this contract will be performed primarily within the NAVFAC Washington AOR to include District of Columbia (40%); Virginia (40%); and Maryland (20%). Intercontinental Construction Contracting Inc. is awarded initial task order at $169,821 for the construction of seven above-ground storage tanks and two pump houses at Chesapeake Beach Detachment, Maryland. The work to be performed provides repairs, new construction and alterations to shore facilities and utilities. Additionally, work may also include but are not limited to, engaging in installing and serving mechanical, electrical, plumbing, heating, air-conditioning, building's equipment and other specialized trades. Work for this task order is expected to be complete by June 2021. The term of the contract is not to exceed 24 months, with an expected completion date of May 2022. Fiscal 2020 Navy working capital funds (NWCF); and fiscal 2020 supervision, inspection and overhead contract funds in the amount of $194,821 are obligated on this award and will expire at the end of the current fiscal year. The maximum dollar value including the base period and one option year for all six contracts combined is $99,000,000. Future task orders will be primarily funded by military construction (Navy); operations and maintenance (Navy); and NWCF. This contract was competitively procured via the Beta Sam website, and 23 proposals were received. These six contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command Washington, Washington, D.C., is the contracting activity. Applied Systems Engineering Inc., Niceville, Florida, is awarded a $10,600,000 modification on an indefinite-delivery/indefinite-quantity delivery order N001781-70-D-2053 for additional quantities of Advanced Tactical Navigation units as well as various upgrades, repairs and associated support. Work will be performed in Niceville, Florida, and is expected to be complete by April 2022. This modification raises the contract ceiling to $22,259,073. This modification is being awarded on a sole-source basis in accordance with Federal Acquisition Regulation 6.302-2, Unusual and Compelling Urgency (see 10 U.S. Code 2304(c)(2)). No funds are being obligated at the time of award, and will be obligated on individual orders as they are issued. The Naval Surface Warfare Center, Dahlgren Division, Dahlgren, Virginia, is the contracting activity. W. F. Magann Corp., Portsmouth, Virginia, is awarded a $10,234,262 firm-fixed-price modification for replacement of the Dry Dock 4 north side duct bank at the Norfolk Naval Shipyard, Virginia. Work will be performed in Portsmouth, Virginia, and includes, but is not limited to, demolition of the existing terracotta duct banks and installation of structural, concrete encased duct banks for the electrical systems, shore power, industrial power, capstan power and telecommunications systems. Work is expected to be complete by July 2022. After award of this modification, the cumulative contract value will be $174,551,064. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $10,234,262 are obligated on this award and will expire at the end of the current fiscal year. The Naval Facilities Engineering Command Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-19-C-9014). AIR FORCE Ventech Inc., Largo, Maryland, has been awarded a $99,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for performance of the Base Level Software Support V contract. This contract provides for purchasing of commercial software, software maintenance and bundled maintenance, filing purchases and license information database operations and maintenance, report generation and general support to address software, documentation and licensing issues. Work will be performed at Eglin Air Force Base, Florida, and is expected to be completed May 30, 2030. The period of performance for this services contract is for a five year base period with one five year option. This award is the result of competitive acquisition and 18 offers were received. Fiscal 2020 research, development, test and evaluation funds in the amount of $106,723 will be obligated at the time of award. Air Force Testing Center, Eglin AFB, Florida, is the contracting activity (FA2486-20-D-0009). Survice Engineering Co. LLC, Belcamp, Maryland, has been awarded a not-to-exceed $89,489,901 indefinite-delivery/indefinite-quantity contract for the Defense Technical Information Center (DTIC). This contract provides for the acquisition, storage, retrieval, synthesis, analysis and dissemination of 22 technical focus areas and scientific technical information for the Department of Defense Information Analysis Center mission. Work will be performed at Fort Belvoir, Virginia, and is expected to be completed Dec. 31, 2026. This contract is the result of a competitive acquisition and two offers were received. Fiscal 2020 research, development, test and evaluation funds in the amount of $3,600 will be obligated at the time of award. The Air Force Installation Contracting Center, Offutt Air Force Base, Nebraska, is the contracting activity (FA8075-20-D-0001). Sea Box Inc., East Riverton, New Jersey, has been awarded a $77,454,898 requirements order for basic expeditionary airfield resources expandable bicon shelter hygiene systems for the Support Equipment and Vehicles division at Robins Air Force Base. The order provides for the production of 43 initial quantities and best estimated quantities (BEQ) of five each under the basic period, BEQ of 26 for Option Period One, BEQ of 44 each for Option Period Two, BEQ of 30 each for Option Period Three, and BEQ of 30 each for Option Period Four. Work will be performed in East Riverton, New Jersey, and is expected to be completed May 18, 2024. This award is the result of a sole-source acquisition. Fiscal 2019 other procurement funds in the amount of $15,422,303; and fiscal 2020 other procurement funds in the amount of $2,500,914 are being obligated at the time of award. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8534-20-F-0026). ManTech SRS Technologies Inc., Herndon, Virginia, has been awarded a $20,916,894 cost-plus-fixed-fee and firm-fixed-price modification (P00056) to contract FA8811-10-C-0002 for systems engineering and integration services. Work will be performed at Los Angeles Air Force Base, California; Vandenberg AFB, California; and Cape Canaveral Air Force Station, Florida. Work is expected to be completed Sept. 22, 2020. Fiscal 2020 procurement funds in the amount of $17,673,379; fiscal 2020 operations and maintenance funds in the amount of $1,503,797; and fiscal 2020 research development test and evaluation funds in the amount of $729,723 are being obligated at the time of award. Total cumulative face value of the contract modification and option is $20,916,894. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. ARMY Vigil America Inc., Deland, Florida, was awarded a $49,000,000 firm-fixed-price contract for the Electronic Automatic Activation Device. 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 May 14, 2027. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911QY-20-D-0015). WASHINGTON HEADQUARTERS SERVICES UPDATE: The contract announced yesterday, May 18, 2020, to Chenega Healthcare Services LLC, San Antonio, Texas (HQ0034-20-D-0008), to provide COVID-19 contact tracing for Pentagon support services, was actually awarded today. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2192036/source/GovDelivery/

By: Valerie Insinna WASHINGTON — During a Thursday morning cable news appearance, U.S. President Donald Trump blasted the F-35's global supply chain and hinted he might intercede to bring more work on the Lockheed Martin-made jet back to the United States. Trump brought up the F-35 during an exchange where Fox Business Network's Maria Bartiromo asked how the president plans to incentivize key U.S. industries — such as pharmaceutical companies — to cut China out of their supply chain. “I could tell you hundreds of stories of the stupidity that I've seen. As an example, we're making a fighter jet. It's a certain fighter jet, I won't tell you which, but it happens to be the F-35,” Trump said. “It's a great jet, and we make parts for this jet all over the world. We make them in Turkey, we make them here, we're going to make them there. All because President [Barack] Obama and others — I'm not just blaming him — thought it was a wonderful thing,” he said. “The problem is if we have a problem with a country, you can't make the jet. We get parts from all over the place. It's so crazy. We should make everything in the United States.” “Could we do it?” Bartiromo asked. “Yeah, we're doing it because I'm changing all those policies,” Trump said. “Look, we make F-35s — very important, the greatest jet in the world — where the main body of the jet is made in Turkey and then sent here.” But if that relationship breaks down, Turkey could refuse to give the United States key F-35 components, Trump said. It was unclear whether Trump actually plans to take action to move additional elements of F-35 back to the United States. In a statement to Defense News, Defense Department spokesman Lt. Col. Mike Andrews said the Pentagon has no comment and referred questions on Trump's statements to the White House. “The Department remains fully committed to the F-35 program, and maintaining a competitive edge with its unique, unmatched 5th generation capabilities. We will continue to aggressively reduce F-35 cost, incentivize Industry to meet required performance, and deliver advanced capabilities to our warfighters at the best value to our taxpayers." he said. A spokesman for Lockheed referred questions to the Defense Department. It's worth noting that while Trump got many broad assertions about the program right, not all of his statements about the F-35 stand up to scrutiny. Here's a point-by-point explainer: Global participation is baked into the very foundation of the Joint Strike Fighter program. The Joint Strike Fighter program — which stems from efforts started in the 1990s — was structured not only to produce planes for the U.S. military but also for key allies. Nations that wanted to be “partners” on the program would help foot the bill for developing the jet in exchange for work producing components on the program. There were several benefits to this structure. From an operational perspective, it would ensure that many of the Pentagon's closest allies were using the same jet, making it easier to send information and coordinate military engagements. From an industrial perspective, having a deep, multilayered global supply chain would theoretically make F-35 production less prone to disruption, and it could make it easier for Lockheed to distribute parts to sustain the jet worldwide. There were also economic advantages for the United States. Having so much international buy-in ensured future sales, which benefited U.S. defense manufacturers and the Defense Department, which can buy its planes more cheaply due to economies of scale. Originally there were nine partner nations on the program: Australia, Canada, Denmark, Italy, the Netherlands, Norway, Turkey, the United Kingdom and the United States. However, the United States expelled Turkey from the program last year after the country purchased the Russian S-400 air defense system. President Barack Obama and his predecessors weren't really to blame for the globalized structure of the program. Historically — at least until Trump — a president hasn't publicly interfered in the F-35 program. The Obama administration was broadly supportive of the F-35, continuing to finance the program even as it hit a number of technical snags that caused cost and schedule to balloon. However, the structure of the program and much of the F-35 supply chain was already set in stone before Obama was sworn into office in 2009. Lockheed Martin won the Joint Strike Fighter contract in 2001 after producing a prototype version of the F-35 known as the X-35 and facing off against Boeing's X-35 demonstrator. At that point, the company would have already cemented much of its supply chain as part of the process of preparing a proposal for the competition. The first F-35 flew in 2006. While there have been changes to the F-35 supply chain since the jet went into production, the more major changes have occurred during block upgrades, when legacy technologies are swapped out for cheaper, improved versions. One example is the transition of the distributed aperture system from a Northrop Grumman to Raytheon product during the upcoming 15th lot of F-35 production. Turkey has an industrial role in building the F-35, and that's changing on the U.S. government's terms. Trump's assertion that Turkey could deny the United States key F-35 components doesn't reflect the current status quo, as it's the U.S. Defense Department that is working to expel Turkey from the program. While it is true that Turkey, as an international partner on the F-35 program, helps to manufacture the jet and build key components, Trump has overstated the role played by Turkey. According to the U.S. Government Accountability Office, Turkey makes about 1,000 different components for the F-35. The Pentagon is set to stop awarding F-35-related contracts to Turkish firms this year. According the GAO, the Defense Department already identified alternate suppliers for all components currently made in Turkey, and the department is working with those suppliers to speed up production. When Trump talks about Turkey building the “main body” of the jet, he is talking about the center fuselage, some of which are built by Turkish Aerospace Industries. However, TAI is only the secondary supplier of the center fuselage, with Northrop Grumman making that component for the majority of F-35s. It is very likely that Northrop will take over production of that structure until another supplier is found to replace TAI. Updated 5/14/20 with statements from the Pentagon and Lockheed Martin. https://www.defensenews.com/air/2020/05/14/trump-has-questions-about-the-f-35s-supply-chain-here-are-some-answers/

By: David B. Larter WASHINGTON — Leonardo has restarted work on the U.S. Navy's new training helicopter after its competitor's protest of the contract was rejected by the Government Accountability Office. Airbus, which lost the competition in January, protested the award of the TH-73 that is slated to replace the Navy's aged TH-57 Sea Ranger fleet. “On Tuesday, the GAO denied the protest of the Navy's contract award of the Advanced Helicopter Training System (AHTS) program to Leonardo,” Leonardo said in a statement. “As a result, Leonardo has immediately resumed work on AHTS in Philadelphia, readying the next generation of U.S. Naval Aviators.” The contract, which is going through Leonardo's Philadelphia, Pennsylvania-based AugustaWestland facility, is valued at about $648 million. The first part of the contract was for $176.5 million and covered the first 32 helicopters. https://www.defensenews.com/naval/2020/05/14/government-watchdog-rejects-airbus-protest-over-us-navy-training-helicopter-contract/

By: Agnes Helou BEIRUT — American firm Oshkosh Defense and Saudi Arabia's Al Tadrea Manufacturing Company have established a joint venture to manufacture armed vehicles in the kingdom. The two companies formed Oshkosh Al-Tadrea Manufacturing, creating “the largest partnership in the history of Saudi armored vehicles,” according to a message on Al Tadrea's official Twitter account. Defense News reported in 2017 that Al Tadrea was in talks with Oshkosh to manufacture armored vehicles in Saudi Arabia. Al Tadrea CEO Fawzi Bin Ayoub Sabri confirmed during an interview that year at the Bahrain International Defence Exhibition and Conference that his company was “"discussing partnerships with many international companies, particularly negotiating with Oshkosh Defense to produce armored vehicles.” Wednesday's online signing ceremony was held between officials and senior executives of the two companies. The joint venture, also known as OTM, will be based in Saudi Arabia, and the kingdom will hold the largest property share, according to a May 14 report by the Saudi Press Agency. “The joint venture will design and provide its first vehicles to be built based on the model of the Oshkosh Defense vehicle in the medium-sized 4×4 Tactical Vehicle (FMTV) category,” the press agency reported. OTM will “develop manufacturing expertise to become a major partner for wheeled tactical vehicle services, [and] it will also provide the necessary services to its customers in the security and military sectors in the Kingdom, through an integrated and sustainable support fleet, as well as activating the supply chains more broadly and more efficiently,” the report read. In a speech during the virtual ceremony, the head of Al Tadrea said: "The current efforts made by the kingdom in the field of industries, especially military industries, demand from us to move forward and follow the government's directions to achieve everything related to homeland security, and to raise the efficiency of military industries and the support of Saudi talents and human capabilities that we rely on by providing job opportunities to the Saudis.” For his part, John Bryant, the president of Oshkosh Defense and the executive vice president of its parent company, Oshkosh Corporation, said that “both Oshkosh Defense and Al Tadrea Manufacturing have worked closely for more than two years to establish this joint venture, by transferring its technology and capabilities. We are very excited to cooperate with this Saudi company with a solid history.” The two firms prepared for this joint venture by providing training opportunities and accreditation certificates to future OTM employees. The training sessions covered manufacturing, repairing and joint maintenance of M-ATVs, which are mine-resistant, ambush-protected vehicles made by Oshkosh and currently in service within the Royal Saudi Land Forces. https://www.defensenews.com/industry/2020/05/14/oshkosh-saudi-arabias-al-tadrea-launch-joint-venture-to-make-armored-vehicles/

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

By: Meagan Metzger In today's crisis-stricken world, it is heartening to see leaders recognizing the importance of government support for innovative, private sector solutions to the problems facing the defense industry. For the Department of Defense, reforming policies and refocusing priorities so that commercial tech can be successfully implemented to support the defense industry's mission is essential. The DoD's endorsement not only encourages emerging tech startups to consider government compliance and scale in their business models from the very beginning; it also protects our national security — and service members in uniform — by putting the most innovative technology into play. But creating more opportunities for commercial tech companies to secure government contracts is only the beginning. For government agencies to successfully take advantage of innovative tech from the private sector, a few things need to happen — and the sooner, the better. First, the government needs to look beyond legacy contracts. As has been noted by venture capital leaders, the announced provisions of the coronavirus relief legislation, the CARES Act, “to streamline the Defense Department contracting process” currently apply only to contracts worth $100 million or more. This excludes emerging commercially successful tech companies that could have a significant impact at the government level. Separate, though related, are needed reforms to the Small Business Innovation Research program. The National Defense Authorization Act for fiscal 2020 provides additional SBIR flexibility for small businesses that are more than 50 percent owned by venture capital, but the DoD has yet to fully promulgate this new flexibility authority. Until eligibility standards are adjusted, the DoD is missing the chance to work with proven, VC-backed companies. Of course not all commercial tech companies are equipped to support government missions; and to ignore the importance of a rigorous evaluation process is even more harmful than ignoring commercial tech all together. Finding emerging tech is easy. Evaluating and equipping tech companies for success in government is hard, particularly when national security is a critical concern. The COVID-19 crisis has made it even more apparent that government agencies need to be able to implement tech solutions quickly and trust that they will perform as expected. A tech company with proven success in the private sector may draw the government's attention and show that it can deliver, but there are other equally important indicators to consider when determining if a company is capable of performing as expected at the government level. The Pentagon, like any government agency, must rely on data-backed advice and expertise to identify which commercial tech solutions are most likely to succeed in the federal market. Finding technology companies should not be a quantity play, but focus more on fit and quality. Moving fast requires working with private sector partners who have experience vetting tech companies for government contracts, which we've seen leaders do, like Space and Missile Systems Center's Air Force Col. Russell Teehan and the head of Air Force Program Executive Office Digital Steven Wert. Partners that are federally focused — with deep knowledge of government problem sets and missions — can identify which tech companies are viable technically and will be viable in the federal market. Assessing tech's viability requires specific experience evaluating a set of qualitative characteristics unique to this market, in addition to the typical “can they work with government" questions like: “Where is the code compiled?” Government agencies should also look to VCs and accelerators that can specifically guide tech companies through the government market contracting process and equip them to succeed in the long term. For instance, in 2019, the United States Air Force worked with Dcode to scout technology for the service's Multi-Domain Operations Challenge, and seven of the 30 finalists were companies that had completed the Dcode accelerator to prepare for success in the federal market. Supporting these tech companies requires more than just a singular contract award. To get over the “valley of death,” companies have to understand everything from compliance to how to staff, rework operational processes and market effectively, to name a few. There is no question that working with the right emerging tech companies is imperative for the DoD and other government agencies. But at a moment in history when time is particularly of the essence, there is no room for trial and error when it comes to identifying which tech companies can meet the government's specific needs. By working with private sector partners that have extensive government expertise and proven results, the DoD can confidently implement innovative technology that addresses its most critical needs in a time of crises and well into the future. Meagan Metzger is the founder and CEO of Dcode. She also serves on an advisory board for Booz Allen Hamilton, and another advisory board for the Defense Entrepreneurs Forum. She previously worked as chief operating officer of a mobile and cloud company, as well as chief strategy officer at an IT consultancy. https://www.defensenews.com/opinion/commentary/2020/05/14/choosing-the-right-commercial-tech-for-government/

Nathan Strout and Valerie Insinna Satellite communications provider Intelsat declared bankruptcy May 13, although its subsidiary which provides services to the Department of Defense is not part of the Chapter 11 proceedings. CEO Stephen Spengler spun the action as a positive move, claiming it gave the company more financial flexibility for the Federal Communication Commission's clearing of C-Band spectrum to make way for 5G uses. Major satellite communications companies, including Intelsat, saw their stocks take a massive hit last fall when FCC Chairman Ajit Pai announced plans for a public auctioning of C-Band spectrum, which C-Band holders like Intelsat had hoped to sell off directly. The company says it will need to spend more than $1 billion to meet the FCC's deadlines for clearing out C-Band spectrum, which it needs to do in order to be eligible for $4.87 billion in accelerated relocation payments. Wiping the company's significant legacy debt off the books will help it accomplish those actions, said Spengler. “We intend to move forward with the accelerated clearing of C-band spectrum in the United States and to achieve a comprehensive solution that would result in a stronger balance sheet,” said Spengler in a statement. “This will position us to invest and pursue our strategic growth objectives, build on our strengths, and serve the mission-critical needs of our customers with additional resources and wind in our sails.” Subject to court approval, the company said in a statement it had already secured $1 billion in new financing in debtor-in-position funds, giving it the liquidity to continue current operations and finance C-Band clearing costs spurred by the Federal Communications Commission. The company claims that day-to-day operations will not be impacted by the restructuring process—it will continue to launch new satellites and invest in its network with no changes planned. The Chapter 11 petitions for Intelsat and some of its subsidiaries were filed with the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division. However, Intelsat General, which provides satellite communications to the U.S. military and allied military customers, is not part of the bankruptcy proceedings. “The immediate concern (for DoD) is continuity of operations and it sounds like that is not going to be a big issue,” said Todd Harrison, director of the Aerospace Security Project at CSIS. “The longer term concern for DoD is how does Intelsat eventually emerge from bankruptcy, and is there any kind of transfer in ownership or an increase in ownership stake that would be concerning from a national security perspective.” Specifically, investment from Chinese companies could raise alarms for the military and the Committee on Foreign Investment in the United States. “I think that's something that DoD will be watching, that Treasury will be watching,” he said. “It will be a positive side from DoD's perspective if wherever the capital is coming from is from a U.S. source.” When asked about potential Chinese investment in a bankrupt Intelsat May 14, U.S. Air Force Assistant Secretary for Acquisition, Technology and Logistics Will Roper acknowledged he had concerns. “It's a topic that's harder for me to talk about, but we are mindful of adversarial tactics in this period. Every crisis is an opportunity, and with companies coming under duress it is an opportunity for predatorial tactics targeting IP that countries would not have access to otherwise," he told reporters. Furthermore, Roper noted that the decision to financially support a company like Intelsat to prevent foreign investment requires a different calculus than a traditional stimulus. “The way to engage if we risk losing IP to a nation for whom it's not in our interest to have it, it's a very different strategy (than whether we) should engage to prop up a company through stimulus," he said. "When the former appears to happen, then we need to pivot into a different gear than we would be in the latter. We simply cannot do stimulus for every company that is in duress right now.” Intelsat isn't the only major satellite company to declare bankruptcy. OneWeb—who have been building a proliferated low earth orbit constellation to provide broadband—declared bankruptcy in March. DoD had been exploring utilizing OneWeb for communications in the Arctic among other things, and Lt. Gen. David Thompson, vice commander of Headquarters Space Force, noted earlier this week that the department's new Space Acquisition Council was looking into helping OneWeb and other financially vulnerable space companies impacted by COVID-19. Intelsat noted in a statement that several of its end markets had been impacted by COVID-19. Roper said he was concerned with how COVID-19 was disproportionately affecting space and aviation companies, which rely more heavily on commercial revenue than other parts of the defense industrial base. “That's why we've taken such aggressive means to accelerate contract awards," said Roper. “We're worried about space, as well, especially microelectronics. All of the Space Acquisition Council shares that concern. And as we see the Chapter 11s being filed—we're tracking them—but our concern as an acquisition enterprise has got to be industrial base health and not picking winners or losers with specific companies. It's ensuring that we are engaging to have a healthy industrial base on the other side." Roper added that he had approved the acceleration of a major satellite award that should be announced this week as part of the department's efforts to increase the flow of funding to defense companies during COVID-19. https://www.c4isrnet.com/battlefield-tech/space/2020/05/14/intelsat-declares-bankruptcy/