Nouvelles

Both of the F-35 Joint Strike Fighter assembly plants outside the United States are expected to be up and running by Wednesday after brief coronavirus-related shutdowns. Leonardo's final-assembly-and-checkout plant in Cameri, Italy, closed Monday and Tuesday for “deep cleaning and sanitization,” a person familiar with the F-35 program said Tuesday. That assembly plant is expected to reopen on Wednesday. And Mitsubishi Heavy Industries' F-35 plant in Japan reopened this week after being closed last week, the person said. Meanwhile the Lockheed Martin factory in Fort Worth, Texas, which builds F-35s for the U.S. military and most overseas customers, has not been affected by COVID-19, which has shuttered businesses and prompted firms across the United States to allow some employees to work from home. “There's been no significant impact to production or supply chain at this time,” the person familiar with the program said on the condition of anonymity. In an emailed statement, Lockheed Martin, the lead F-35 contractor said: “As we monitor global developments we continue to use best practices to mitigate risks related to Coronavirus (COVID-19), while supporting the critical missions of our customers.” Lockheed Martin has been urging employees potentially exposed to COVID-19 to work remotely and self-quarantine. https://www.defenseone.com/business/2020/03/italys-f-35-line-shuts-down-japans-reopens/163862

By BARRY ROSENBERGon March 17, 2020 at 12:53 PM The urgency to protect troops, bases, and installations from drone attacks changed forever last year when a swarm of small, low-flying drones unleashed by Yemen's Iranian-backed Houthi rebels targeted Saudi Arabian oil processing facilities. The attack was nothing less than a Pearl Harbor-type wake-up call for the need to counter unmanned aerial systems with defense technology commonly referred to as C-UAS. This Breaking Defense E-Brief examines U.S. Defense Department and global efforts to stay ahead of the threat. It examines sensor development to detect UAS, the use of artificial intelligence to identify targets, and defeat mechanisms ranging from jamming to lasers to knock them down. https://breakingdefense.com/2020/03/ebrief-drones-an-immediate-threat-dod-plans-rapid-acquisition-of-counter-uas-systems

ARMY Phoenix Logistics Inc.,* Gilbert, Arizona, was awarded a $516,000,000 cost-no-fee, cost-plus-fixed-fee, cost-plus-incentive-fee, firm-fixed-price contract to provide capabilities to the Joint Land Component Constructive Training Capability across the range of warfighting functions. Bids were solicited via the internet with two received. Work locations and funding will be determined with each order, with an estimated completion date of March 16, 2030. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-20-D-0010). Rock Island Integrated Services, Rock Island, Illinois, was awarded a $7,463,098 modification (P00024) to contract W52P1-J-19-C-5003 for base operations support services. Bids were solicited via the internet with one received. Work will be performed in Rock Island, Illinois, with an estimated completion date of March 14, 2021. Army Contracting Command, Rock Island, Illinois, is the contracting activity. NAVY DynCorp International LLC, Fort Worth, Texas, is awarded a $104,085,696 modification (P00050) to a previously awarded firm-fixed-price, cost-plus-fixed-fee and cost reimbursable contract (N00421-17-C-0033). This modification exercises an option to provide maintenance and logistics support on all aircraft and support equipment for which the Naval Test Wing Atlantic has maintenance responsibility. Work will be performed in Patuxent River, Maryland, and is expected to be complete by March 2021. Fiscal 2020 working capital (Navy) funds in the amount of $47,233,324; fiscal 2020 operations and maintenance (Navy) funds in the amount of $13,038,915; and fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $921,844 will be obligated at the time of award, $13,038,915 of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. Honeywell International Inc., Defense & Space, Tempe, Arizona, is awarded $72,817,953 for an indefinite-delivery, performance-based logistics requirements contract for the repair, replacement and program support for auxiliary power units used on combat jets, maritime surveillance and cargo aircraft models (the F/A-18, A-G, P-3 and C-2). Work will be performed in Jacksonville, Florida (50%); Cherry Point, North Carolina (39%); and various contractor facilities (11%). Work is expected to be complete by March 2022. The work performed also provides coverage for the main fuel controls and electronic control unit used on the F/A-18 and the P-3 engine driven compressor. This contract includes a two-year base period with no options. Annual working capital funds (Navy) in the amount of $36,555,518 will be obligated for delivery order (N00383-20-F-0WP0) that will be awarded concurrently with the contract. Funds will not expire at the end of the current fiscal year. One company was solicited for this non-competitive requirement under authority 10 U.S. Code 2304 (c)(1) and Federal Acquisition Regulation 6.302-1, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-20-D-WP01). Lockheed Martin Rotary and Mission Systems, Manassas, Virginia, is awarded a $65,815,333 cost-plus-incentive, fixed-price-incentive modification to previously awarded contract N00024-13-C-5225 for the production and engineering services of the Navy's Undersea Warfare Systems (model AN/SQQ-89A(V)15) for surface ships. Work will be performed in Lemont Furnace, Pennsylvania (54%); Clearwater, Florida (22%); Syracuse, New York (7%); Manassas, Virginia (6%); Hauppauge, New York (5%); Oswego, New York (5%); and Tewksbury, Massachusetts (1%), and is expected to be complete by May 2022. Fiscal 2020 other procurement (Navy); 2020 shipbuilding and conversion (Navy); 2020 research, development, test and evaluation (Navy); 2019 shipbuilding and conversion (Navy); 2020 operations and maintenance (Navy); and 2018 shipbuilding and conversion (Navy) funding in the amount $65,815,333 will be obligated at the time of award, and $50,000 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. The Haskell Co., Jacksonville, Florida, is awarded a $9,498,353 firm-fixed-price contract for construction of the P680 CH-53K cargo loading tower at the Marine Corps Air Station in New River, North Carolina. Work will be performed in New River, North Carolina, and is expected to be complete by April 2022. The work to be performed will provide a high-bay facility that will house an operations trainer to support CH-53K helicopter pilot and crew chief training program. Construction includes a deep pile foundation, grade beams and reinforced concrete slabs to provide the building's base while reinforced concrete masonry unit exterior walls and a standing seam metal roof provide the building enclosure. This facility will provide a covered, all-weather training environment for the ground operations aircrew trainer, a fuselage trainer device, pallet storage, retrieval and build-out packages associated with troop deployment and mobility. The facility includes high-bay roll-up doors and concrete drive aprons to accommodate moving the aircraft frame in and out of the building. Fiscal 2020 military construction (Navy) contract funds in the amount of $9,498,353 are obligated on this award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website with five proposals received. Naval Facilities Engineering Command Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-20-C-0066). AIR FORCE InDyne Inc., Sterling, Virginia, has been awarded a $51,386,233 modification (P00042) to previously awarded contract FA2517-18-C-8000 for Solid State Phased Array Radar Systems (SSPARS). This modification provides for the exercise Option Year Two for the management, operation, maintenance, and logistical support of SSPARS. Work will be performed at Beale Air Force Base, California; Cape Cod Air Force Station, Massachusetts; Clear Air Force Station, Alaska; Thule Air Base, Greenland; and Royal Air Force Fylingdales, United Kingdom, and is expected to be complete by April 30, 2021. Fiscal 2020 operations and maintenance funds in the full amount were obligated at the time of award. The total cumulative face value of the contract is $143,875,078. The 21st Contracting Squadron, Peterson AFB, Colorado, is the contracting activity. The Charles Stark Draper Laboratory Inc., Cambridge, Massachusetts, has been awarded a $45,000,000 indefinite-delivery, indefinite-quantity contract for the Quicksilver Device prototype. This contract provides for the design, build, and test of an operational Quicksilver Device prototype. Work will be performed in Cambridge, Massachusetts; and Reston, Virginia, and is expected to be completed March 18, 2027. This award is the result of a sole source acquisition, and fiscal 2020 research and development funds in the amount of $7,491,567 are being obligated at the time of award. The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8684-20-D-4000). (Awarded March 16, 2020) Data Computer Corp. of America, Ellicott City, Maryland, has been awarded a $7,201,113 fixed-price incentive-firm target modification (P00025) to contract FA880-6-16-F-0002 for the Western Range Modernization Network operations, maintenance and sustainment. This modification supports an increase in operational requirements. Work will be performed at Vandenberg Air Force Base, California, and is expected to be completed by Aug. 31, 2023. Fiscal 2019 and space procurement funds are being obligated at the time of award. Space and Missile Systems Center, Peterson AFB, Colorado, is the contracting activity. DEFENSE LOGISTICS AGENCY Capps Shoe Co.,* Lynchburg, Virginia, has been awarded a maximum $15,396,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for men's poromeric shoes. This was a competitive acquisition with two responses received. This is a one-year base year contract with two one-year option periods. Location of performance is Virginia, with a March 17, 2021, performance completion date. Using military services are Army, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1246). The Raytheon Co., McKinney, Texas, has been awarded a maximum $9,312,000 undefinitized, firm-fixed-price delivery order (SPRPA1-20-F-CB04) against a five-year basic ordering agreement (SPRPA1-19-G-CB01) for electronic modules for the H-53 aircraft. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a two-year contract with no option periods. Location of performance is Texas, with a March 7, 2022, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2020 Navy working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. CORRECTION: The contract announced on March 12, 2020, for American Autoclave Co., Jasper, Georgia (SPE4A8-20-C-0001), was announced with an incorrect award date. The correct award date is March 17, 2020. *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2115416/source/GovDelivery/

By: Jen Judson WASHINGTON — The Army has selected Bell and Sikorsky to enter into a competitive demonstration and risk reduction effort ahead of the start of the Future Long-Range Assault Aircraft, or FLRAA, program of record. The service is on a tight timeline to field a new long-range assault aircraft by 2030. The CDRR will consist of two phases that will last roughly one year each. The companies will deliver initial conceptual designs, an assessment of the feasibility of requirements and trade studies using model-based systems engineering. The competition for the program of record will begin in 2022 with a plan to field the first unit equipped in 2030. Congress added $76 million in funding to the aircraft program's top line in fiscal 2020 to drive down technical risk and speed up delivery. The money, which Congress approved as part of its FY20 appropriations bill signed into law in December, will fund the CDRR effort. The Army completed its Joint Multi-Role Technology Demonstration, or JMR TD, for which Bell and the Sikorsky-Boeing team each built aircraft to help the service understand what is possible for a future aircraft — mainly to replace the UH-60 Black Hawk. “These agreements are an important milestone for FLRAA,” Patrick Mason, the Army's aviation program executive officer, said in a statement issued March 16. “The CD&RR continues to transition technologies from the JMR-TD effort to the FLRAA weapons system design. We will be conducting analysis to refine the requirements, conceptual designs, and acquisition approach. Ultimately, this information and industry feedback are vital to understanding the performance, cost, affordability, schedule risks and trades needed to successfully execute the FLRAA program.” Bell has flown its V-280 Valor tilt-rotor demonstrator for two years in the JMR-TD and has logged more than 160 hours of flight time on the experimental aircraft. Sikorsky and Boeing's SB-1 Defiant coaxial demonstrator had a more difficult time getting off the ground due to issues in manufacturing its rotor blades. Its first flight was in March 2019. Even though Defiant has flown for a significantly reduced amount of time, the Army has determined it has enough data to move forward on its FLRAA program rather than extend the JMR TD to wait for the Sikorsky-Boeing team to log flight time. Brig. Gen. Wally Rugen, who is in charge of the service's future vertical lift modernization efforts, said last spring that because of the data collected through the JMR TD process as a well as additional studies and modeling, the service now thinks it has enough information to move more quickly into a full and open competition for FLRAA. Lt. Gen. Paul Ostrowski, the military deputy to the acquisition chief, said in a Senate Armed Services Airland Subcommittee hearing around the same time that the Army is presenting an acquisition strategy to the Pentagon's acquisition chief focusing on a nondevelopmental item approach to procuring FLRAA. That route, Ostrowski said, could lead to a competitive downselect by FY22. The extra funding provided by Congress will give the service the ability to continue to fly and burn down that inherent risk in developing a new helicopter. “What [that] may do as we hit those gates, is allow us to take what was going to be a primary budget, really a starting budget for the Army in ‘23 and ‘24, and potentially move that selection back to ‘23,” Rugen said recently. “We are not going to go to selection if, number one, we don't have requirements stable, we don't have resources stable, and, number two, the technology is not there.” The Army already has had a robust technology demonstrator program, including an extension, Rugen said, but that type of effort doesn't garner the same data as a prototype demonstration or a full-up weapon system. “In the CDRR [competitive demonstration and risk reduction], we're really trying to develop a weapons system, not the tech demonstrator,” Rugen said. “So we're trying to take it to the next level.” The CDRR will assess a laundry list of technologies identified through an Office of the Secretary of Defense-conducted independent technology readiness assessment, which would require additional evaluation to reduce risk, according to Rugen. Some of these technologies include the powertrain, drivetrain and control laws of the aircraft. “When we look at the software involved in flight controls, we have to really reduce risk there,” Rugen noted. The CDRR will also allow the Army to work on the integration of its mission systems. https://www.defensenews.com/land/2020/03/16/army-selects-companies-to-continue-on-in-long-range-assault-aircraft-competition/

By: Jen Judson WASHINGTON — Lockheed Martin, which builds the Terminal High Altitude Area Defense weapon system for the U.S. Army, has awarded BAE Systems a contract to design and manufacture a next-generation seeker for the system's interceptors, according to a BAE announcement posted March 17. “The sensor design work will improve the missile defense system's ability to neutralize more threats and improve its manufacturability,” the statement read. The company did not disclose the contract amount or timelines to develop a design. The THAAD weapon system is part of the Army's layered approach to missile defense, now with its ability to defeat ballistic missile threats in the terminal phase of flight, but the Missile Defense Agency also wants to make it part of its future homeland defense architecture. BAE already provides the seeker for the THAAD system, which uses infrared imagery to guide the interceptors to threat targets, and the company has delivered more than 500 THAAD seekers to date, according to the statement. While the seekers are built in Nashua, New Hampshire, and Endicott, New York, the company plans to conduct design work for the next-generation seeker in Huntsville, Alabama, home of Redstone Arsenal and the Army's missiles and space programs. BAE Systems is building a state-of-the-art facility that will house a “cutting-edge” design program in Huntsville, the company noted. While the Army plans to continue using THAAD far into the future, the MDA is, in fiscal 2021, planning to allocated $273.6 million for THAAD development efforts, including the THAAD homeland defense tier. Specifically, the agency is asking for $139 million in FY21 to start the development and demonstration of a new interceptor prototype for THAAD, which could support a tiered and layered approach to homeland defense. BAE Systems did not say whether the next-generation interceptor design work includes efforts related to MDA's desire to produce a new interceptor prototype. The agency is “challenging ourselves” to figure out how to develop a THAAD interceptor that would work against an intercontinental ballistic missile, Vice Adm. Jon Hill, the MDA's director, said when the FY21 defense budget request was released in February. To do that, the MDA is seeking to draw lessons from building THAAD batteries for Saudi Arabia, he said. The agency is also looking at the existing engineering trade space. “We may consider an upgraded propulsion stack to give [THAAD] extended range, don't know yet,” he said. “It could be that we don't want to update the propulsion. Maybe there is something in the seeker that would buy us more in the trade space now.” The THAAD interceptor program is a new start in the FY21 budget request, Hill noted. “We are working our way through what that program would look like.” https://www.defensenews.com/smr/army-modernization/2020/03/17/bae-nabs-next-gen-seeker-design-work-for-us-army-missile-defense-system/

By: David B. Larter and Courtney Mabeus WASHINGTON — U.S. shipyards are adjusting to meet the new coronavirus threat, but work continues across the country. In the wake of news that Fincantieri's shipyards in Italy has suspended operations for two weeks to help stem the spread of the illness, US shipyards have responded with more modest changes: suspending international travel, limiting domestic travel and suspending participation in conferences and trade shows for shipyard employees. Yards are also changing leave policies to allow workers time to adjust to restrictions that have closed schools and businesses across the country. While to date the changes have been minor, several company officials told Defense News that the situation was evolving and more could be coming down the pike as the government responds to the unfolding crisis that has rocked the country over the past week. Huntington Ingalls Industries' president and CEO Mike Petters addressed employees in a video message posted to the company's website Monday. Peters said he is meeting regularly with division leadership and the company has posted links to the Centers for Disease Control and Prevention, which he urged employees to check for the most accurate information. Employees who are experiencing symptoms or believe they may have been exposed should let the company know, he said. “Now more than ever we need to work as a team and look out for each other,” Petters said. Also on Monday, HII's Newport News Shipbuilding division president Jennifer Boykin extended "liberal leave" policies through second shift on March 20. In a post on the company's website, Boykin added that work would be "minimized" during the weekend and that with some exceptions, parking lots at the yard – the nation's only aircraft carrier manufacturer – would be open through Friday with no reserved spaces. Newport News Shipbuilding spokesperson Duane Bourne said the health and safety of workers remained the primary focus, calling it "premature to speculate on the impact of COVID-19 on our contracts." "We are having ongoing discussions with our customers and will continue that dialogue in preparing contingencies and future plans," Bourne wrote in an email. Fincantieri's Marinette shipyard in Wisconsin has suspended all international travel, all noncritical domestic travel and has suspended intracompany travel to prevent any potential spread between shipyards, said Eric Dent, the company's spokesperson. However, to date the company has seen no delays in operations. “So far, we have experienced no production delays,” Dent said. “Obviously like other businesses and shipyards, we have to balance force health protection and production as we work through this.” At General Dynamics' shipyards, both Bath Iron Works and submarine builder Electric Boat are continuing work, though they – like all the other yards – are allowing anyone who can work from home to do so, said Jeff Davis, a GD spokesperson. GD has likewise curtailed travel and ceased company participation in trade shows, Davis said. Electric Boat spokesperson, Liz Power, said the submarine builder is following all government recommendations. “Electric Boat remains open for business,” Power said. "Our ongoing mission is to provide our Navy with the high-quality submarines they require to complete their missions. “We have initiated all government-recommended measures to mitigate spread of the disease and continue to work closely with our employees, customers, suppliers, stakeholders and our community to keep them informed.” The ship repair industry is also taking precautions. Colonna's Shipyard Vice President Bob Boyd said the company is also asking its estimated 700 employees to follow the CDC's guidelines and advising anyone who feels sick to stay home. The company is doing additional screening with non-employees at its entrance, asking about recent travel and contacts, and talking with subcontractors about policies, Boyd said. With schools closed throughout Virginia, Colonna's "just taking it day-by-day." Dock landing ship Gunston Hall left Colonna's Shipyard in Norfolk last week and the company is currently working on Coast Guard vessel as well as Military Sealift Command's expeditionary fast transport ship Burlington, Boyd said. He said he couldn't speculate on what an order to stop work to counter the spread of the virus could mean for federal contracts. “Obviously, if they're shut down or we're ordered not to perform work, then you know, we'll follow those orders and resume work once we're cleared, but you know, it hasn't happened,” Boyd said. "We can't speculate that it will. So, we don't really know what will happen if and when those types of decisions are made, but so far they have not. " https://www.defensenews.com/coronavirus/2020/03/16/with-coronavirus-on-the-loose-us-shipyards-make-adjustments-but-keep-building/

By: Jen Judson WASHINGTON — The first antenna array for the U.S. Army's Lower Tier Air and Missile Defense Sensor passed through initial testing at Raytheon's Massachusetts-based facility, and it will embark on future testing at an outdoor range in the short term, a company official told Defense News. The antenna array went into an indoor, climate-controlled test range, and its performance was evaluated against simulated targets, Bob Kelley, Raytheon's director of domestic integrated air and missile defense programs for business development and strategy, said during a March 16 interview. The technology “came out fantastic on the other side,” he added. Now the array will be mounted on a precision-machined enclosure for integration, Kelley said, and then it will head to a range for testing with real-world targets such as air traffic coming in and out of Boston's Logan International Airport. Raytheon is plowing ahead with an aggressive schedule to deliver the first LTAMDS radar to the Army next year. So far it's on track and on schedule. The company finished building the first radar antenna array in less than 120 days after being selected for the job, following a competition to replace the service's Patriot air and missile defense system sensor. The radar will become a part of the service's future Integrated Air and Missile Defense System that will replace the entire Patriot system. Raytheon also manufactures the Patriot. Raytheon has taken its years of experience refining gallium nitride technology at its Massachusetts-based foundry to help design a new radar system that will provide the Army 360-degree threat detection capability in a configuration that includes one large array in the front and two smaller arrays in the back. The contract is worth roughly $384 million to deliver six production-representative units of the LTAMDS. The Army is working to rapidly deliver initial capability under an urgent materiel release. The service in 2019 held a “sense-off” at White Sands Missile Range, New Mexico, between three working radars from Raytheon, a Lockheed Martin and Elta Systems team, and Northrop Grumman. https://www.defensenews.com/smr/army-modernization/2020/03/17/raytheon-plows-ahead-to-build-us-armys-future-radar/

Mark Pomerleau The Department of Defense has not consistently mitigated cyber vulnerabilities identified in a 2012 report, according to the department's inspector general. The DoD IG issued a follow-on report to its 2012 report, issued March 13 and made public March 17, that determined cyber red teams didn't report the results of assessments to organizations and components didn't effectively correct or mitigate the identified vulnerabilities. The new report discovered that components didn't consistently mitigate or include unmitigated vulnerabilities identified in the prior audit and during this audit by red teams during combatant command exercises, operational testing assessments and agency-specific assessments in plans of action and milestones. “Ensuring DoD Components mitigate vulnerabilities is essential to achieve a better return on investment,” the report stated. “In addition, we determined that the DoD did not establish a unified approach to support and prioritize DoD Cyber Red Team missions. Instead, the DoD Components implemented Component-specific approaches to staff, train and develop tools for DoD Cyber Red Teams, and prioritize DoD Cyber Red Team missions.” The report found that DoD didn't establish a unified approach because it didn't assign an organization with responsibility to oversee and synchronize red team activity based on priorities, it didn't assess the resources needed for each red team and identify requirements to train them to meet priorities and it didn't develop baseline tools to perform assessments. “Without an enterprisewide solution to staff, train and develop tools for DoD Cyber Red Teams and prioritize their missions, DoD Cyber Red Teams have not met current mission requests and will not meet future requests because of the increased demands for DoD Cyber Red Team services,” the report said. “Until the DoD assigns an organization to assess DoD Cyber Red Team resources, it will be unable to determine the number of DoD Cyber Red Teams and staffing of each team to support mission needs, which will impact the Do D's ability to identify vulnerabilities and take corrective actions that limit malicious actors from compromising DoD operations.” The DoD IG issued seven recommendations the secretary of defense assign an organization responsibility for. They include: Review and assess red team reports for systemic vulnerabilities and coordinate the development and implementation of enterprise solutions to mitigate them; Ensure components develop and implement a risk-based process to assess the impact of identified vulnerabilities and prioritize funding for corrective actions for high-risk vulnerabilities; Ensure components develop and implement processes for providing reports with red team findings and recommendations to organizations with responsibility for corrective actions; Develop processes and procedures to oversee red team activities, including synchronizing and prioritizing red team missions, to ensure activities align with priorities; Perform a joint DoD-wide mission-impact analysis to determine the number of red teams, minimum staffing levels of each team, the composition of the staffing levels needed to meet current and future mission requests; Assess and identify a baseline of core and specialized training standards, based on the three red team roles that team staff must meet for the team to be certified and accredited; and Identify and develop baseline tools needed by red teams to perform missions. https://www.fifthdomain.com/dod/2020/03/17/the-pentagon-is-handling-cyber-vulnerabilities-inconsistently/

By: Sebastian Sprenger COLOGNE, Germany — Hervé Guillou, who took the helm at France's shipbuilder Naval Group in 2014, will retire from the company later this month due to an age limit that comes with the job. He made consolidation in Europe's naval sector a key tenet of his tenure, though there has been little movement so far other than Naval Group's cooperation with Italian shipyard Fincantieri and the resulting Naviris joint venture. With fears of demand drying up at home, Naval Group made an aggressive sales push across the world, perhaps most notably with the multibillion-dollar Australian Attack-class submarine program. The project received some criticism in Australia in recent months, though Guillou brushed it aside and said the Australian government remains committed to the program. Guillou spoke to Defense News' European editor, Sebastian Sprenger, by phone on March 10 about the international marketplace and industrial cooperation. With talk of a need for the European naval industry to consolidate, to what extent do you view Naval Group as a European company? We are the European leader of naval defense and as a strategic pillar we are willing to contribute to the building of the Europe of defense. We could not deliver the value to our shareholders if we didn't have a reasonable balance between our national programs like Barracuda or FDI frigates, coupled with a number of significant programs for export. Like Dassault Aviation, we need about 40-60 percent of value added for export if we want to maintain competences and competitiveness on the full scope of our offer. In our effort for internationalization, we have two streams. One is direct sales; we have established 10 new companies outside France. We have seven new customers in seven new countries such as Belgium, Netherlands, Argentina and Romania. That completely changed our international base. The second aspect is Europe, starting with the joint venture with Fincantieri. We have always said other companies can join. The process is slow, but we are absolutely clear that consolidation is needed if we want European sovereignty to be preserved. We are on the way. Naviris is one step. I hope there will be others. But it's a slow move, particularly in the naval industry because of the political visibility and because of the huge differences between the operational concepts of the European navies. Today, the closest to the French Navy would be the British Navy. But the British are on another agenda after Brexit [Britain's exit from the European Union]. On the submarine side, our closest partner in terms of worldwide, expeditionary capacity for oceanic operations are the Netherlands. On surface ships, because we have done Horizon and FREMMs together, it is Fincantieri. Today, Italy and the Netherlands are the likely first steps in our European road map, but others are welcome to join. In late 2018, you said you would make an overture to Germany's ThyssenKrupp Marine Systems for some kind of cooperation agreement once the Australian submarine deal is settled. Did that happen? No. You need two to tango. I don't know yet what is the consensus — or not — between the ThyssenKrupp leadership, government policies and parliament. It's not for me to interfere in that. I have been sending clear and open messages, and [Fincantieri CEO] Giuseppe Bono did the same, publicly. But today, we have no real answer. Germany and France have a land project together, the European battle tank, and two air projects, the Eurodrone and the Future Combat Air System. Do you think a naval project besides those is feasible? I think you cannot copy the aircraft or the land model to the naval sphere. Again, there are no likely bilateral or trilateral programs with Germany in the naval business because Germany has very different operational needs for their Navy than France or Italy. Their submarines are more coastal submarines, geared toward the Baltic Sea. Their surface ships — for example, when you look at the MKS 180 — are of a total different specification than the FREMM or the FDI, which are heavy, weaponized, combat-focused frigates. The Germans have no need for anything like an aircraft carrier, and they are not going to build SSNs [attack submarines]. So today, in my view, if we do something with Germany, it would be more of an industry agenda, as we did first with Italy, to be able to add and find synergies in our international presence, rather than relying on a bilateral program. And the way our industry consolidates is very different. But we have a survival issue in industry, to be able to find volumes, procurement synergies, export opportunities among ourselves and being mindful that the real competitor is more China and Russia and not Germany, Italy or the Netherlands. We continue to explain that, but we need to be patient. I understand well where the Germans come from. With three German yards — TKMS, Lürssen, and Blohm and Voss — it's more fragmented and difficult for them. What about the argument that it would be hard to mix a former state-owned company like Naval Group with shipyards who don't share that kind of heritage? That is totally wrong, and it's totally badmouthing. We are a company with a private status and an independent board even if we have a French government shareholder. Governance guidelines apply to Naval Group like they apply to all French industry in the market. The government does not interfere with the social interests of the company, and my board would not accept it. The same applies to the false charge that we get government subsidies. It is totally untrue. If it was the case, everybody could file claims against us in the European courts. Some of your competitors have argued that Naval Group is too diversified to be compatible with firms that do nothing but shipbuilding. Again, this is not true. Diversification has been put under control. During my time at Naval Group, I closed two big projects in the nuclear area, which were losing money. I have restricted hugely the area of marine energy production, concentrating on offshore wind and geothermal. We are 98 percent focused on naval business. This is not a good subject for our competitors to argue about. What are your expectations of the new French aircraft carrier and Naval Group's role in the program? Naval Group's role is very clear: We shall be the prime contractor for such program. We are the only one capable of designing and integrating such a warship, which includes the concurrent engineering of the combat system and of the platform, including aircraft, drones, the new electromagnetic catapult from the U.S. — more than 200 functions in all. The hull will be built in St. Nazaire, at Chantiers de l'Atlantique, where the big dock for cruise ships will be used. We expect a decision on the future aircraft carrier program sometime this year. I cannot predict the exact timing, but I am optimistic that the decision will be made this year. We have delivered to DGA [the French defense procurement agency] our preliminary studies, our cost-capability tradeoffs; we have given a lot of details as well on the timing of the possible entry into service of such a new aircraft carrier. The government now has all the information they asked to make their decision. Naval Group has been criticized in Australia about the Attack submarine program recently. Did that catch you by surprise? I must say I'm more disappointed than surprised. We have very, very strong support from our customer and from the Australian government. We know where these attacks come from, and we know how it is used in Europe to damage our reputation for ongoing and upcoming competitions. The first crisis was about postponing by five weeks a design review for a 30-year program. The attacks around that are unfair. The other controversy was about including local industry. What is the official plan on workshare for Australian companies? There is no contractual obligation. But we are in a strategic partnership, and there is a clear commitment from Naval Group to reach 60 percent of local content, which is more than the Collins class. And based on our experience in Brazil or in India, we truly believe that at the end of the day we will reach it. It will take time. It is a long, long way to train new industries, to train people, to transfer technology. But we are absolutely committed to Australia, to this partnership to deliver sovereignty, and to deliver this very, very significant percentage of Australian contracts. Do you think the EU is on a good trajectory to foster defense cooperation? I don't know yet. There are two sides of the coin. On the defense side, I would say the progress made in the last three years is absolutely huge. The European Defence Fund and the European Defence Industrial Development Programme, for example, are significant achievements of the previous commission. Is it due to U.S. new policies? Is it due to Brexit? I don't know. It's probably a mix of a lot of things. With the new commission, my understanding is that there is a clear intention to continue in this direction. Nevertheless, there is the budget discussion, which is not completely finished, and where the budgets dedicated to defense are still under threat. We need time to see what the results will be. I'm rather optimistic. The second issue is more in the civilian-economic area, where we still have a significant issue with the rules for anti-trust in European rules. Those are currently preventing European industry to consolidate at a time when we see the Chinese, Korean and U.S. industries are consolidating. In that context, in the shipbuilding sector, we're not hearing good things about the Fincantieri/Chantiers de l'Atlantique case. This is a big worry for us, as this would prevent European players to turn into world players. How will the European Patrol Corvette become a truly European program? Of course, it cannot be a 27-country project. So Europe has to start with two, three or four. This is a Franco-Italian initiative, which is supported by our two navies and our two governments. It was initiated by Fincanteri and Naval Group, and is carried out by Naviris, our joint venture. Greece has declared their interest formally to join the program. Spain is starting to study the case, though they have not declared officially. If we are three, four countries, it's good enough to start. https://www.defensenews.com/global/europe/2020/03/16/you-need-two-to-tango-naval-group-ceo-herve-guillou-on-business-in-europe-and-down-under/