Nouvelles

By ELIANA JOHNSON and DAVID BROWN Concerns about Patrick Shanahan's Boeing ties have re-emerged since President Donald Trump said he may be running the Pentagon ‘for a long time.' Acting Defense Secretary Patrick Shanahan's private remarks during his 18 months at the Pentagon have spurred accusations that he is boosting his former employer Boeing, people who have witnessed the exchanges told POLITICO — fueling questions about whether he harbors an unfair bias against other big military contractors. Shanahan, who spent 31 years at Boeing before joining the Pentagon in mid-2017, has signed an ethics agreement recusing him from weighing in on matters involving the mammoth defense contractor. But that hasn't stopped him from praising Boeing and trashing competitors such as Lockheed Martin during internal meetings, two former government officials who have heard him make the accusations told POLITICO. The remarks raise questions among ethics experts about whether Shanahan, intentionally or not, is putting his finger on the scale when it comes to Pentagon priorities. They also call new attention to a recent decision by the Pentagon to request new Boeing fighters that the Air Force has said it does not want — a request that Bloomberg has reported came after "prodding" from Shanahan. Concerns about Shanahan's ties to his former employer first surfaced during his confirmation hearing to be deputy secretary, but they have re-emerged since President Donald Trump said last month he may be running the Pentagon “for a long time.” In high-level Pentagon meetings, Shanahan has heavily criticized Lockheed Martin's handling of the production of the F-35 fighter jet, which is expected to cost more than $1 trillion over the life of the program, according to one of the two sources, a former senior Defense Department official who was present. Shanahan, this official said, called the plane “f---ed up” and argued that Lockheed — which edged out Boeing to win the competition to build the plane in October 2001 — “doesn't know how to run a program.” “If it had gone to Boeing, it would be done much better,” Shanahan said, according to the former official. As the Pentagon's No. 2, Shanahan repeatedly "dumped" on the F-35 in meetings, calling the program "unsustainable," and slammed Lockheed Martin's CEO, Marillyn Hewson, according to the second source, a former Trump administration official. "'The cost, the out-years, it's just too expensive, we're not gonna be able to sustain it,'" this person said, quoting Shanahan. The former Trump official said Shanahan "kind of went off" about the F-35 at a retreat for Republican lawmakers last year at the Greenbrier resort in West Virginia. This angered several members of the delegation who had home-district interests in the F-35 program, the former official said. "He would complain about Lockheed's timing and their inability to deliver, and from a Boeing point of view, say things like, 'We would never do that,'" this former official said. Shanahan is the first Pentagon chief to come purely from the private sector since the 1950s and has virtually no government or policy experience. He became the acting Defense secretary Jan. 1, following former Secretary Jim Mattis' resignation over Trump's abrupt decision to pull U.S. troops from Syria and begin drawing down from Afghanistan. He has signed an ethics agreement barring him from weighing in on any matters involving his former employer, the Pentagon's fifth-largest contractor in 2017. Shanahan's experience at Boeing is “his only reference point," the former Trump administration official said. "He doesn't have a lot of other experiences to draw on. He owns it in a powerful way because he doesn't have the military experience, he doesn't have the experience in government. So when he talks about those things, he's very forceful." His remarks about the F-35 stand in stark contrast to those of the president, who regularly praises the stealth fighter despite initially slamming its high costs. The F-35 program, while experiencing a number of setbacks, technical delays and groundings throughout the years, is generally considered to be on the mend. The Air Force and Marine Corps variants have been declared ready to deploy, and the Navy version is expected to reach that point as early as next month. And unit costs have come down for all three variants as the plane matures. Trump has praised Shanahan's ability to cut costs, calling him a “great buyer.” He is now among the candidates the president is considering as a permanent replacement for Mattis. Asked for comment, Shanahan's office released a statement saying he is committed to his agreement to stay out of matters involving Boeing. “Under his ethics agreement, Mr. Shanahan has recused himself for the duration of his service in the Department of Defense from participating personally and substantially in matters in which the Boeing Company is a party,” his office said. Full article: https://www.politico.com/story/2019/01/09/defense-patrick-shanahan-boeing-pentagon-1064203

DAVID PUGLIESE, OTTAWA CITIZEN The Canadian International Trade Tribunal is recommending a review of key performance requirements used in the procurement of two emergency towing vessels for the west coast. Heiltsuk Horizon, a partnership of majority partner Heiltsuk Nation of Bella Bella, British Columbia and Horizon Maritime Services Limited, a Canadian marine services company, complained to the CITT in August that the winning supplier did not meet important safety requirements of the tender process. The CITT has recommended Public Services and Procurement Canada re-evaluate some of its mandatory requirements and that no further expenditure under the contact be undertaken. However, the tribunal also recommended that the contract remain with the winning bidder, Atlantic Services Limited/Atlantic Towing, until the evaluation can be completed. In August, the federal government announced the firm had been awarded a three-year contract worth $67 million for the lease of two emergency offshore towing vessels that would operate in the waters off the coast of British Columbia. The vessels were to be capable of towing large commercial ships in distress, such as tankers and container ships, before they get too close to shore, according to the federal government. As part of the contract, the firm, which is an Irving company, would also provide training in offshore emergency towing to Canadian Coast Guard personnel and partners, including Indigenous communities, involved in marine safety. But Heiltsuk Horizon challenged that award, pointing out that the contract was awarded without the required proof the vessels met the mandated towing power. The firm welcomed the CITT ruling. “From day one, we stated the procurement process was flawed,” Chief Councillor Marilyn Slett, Heiltsuk Nation, Bella Bella, BC, said in a statement Tuesday. In a letter to Heiltsuk Horizon, the CITT recommends Public Services and Procurement Canada reevaluate the “bollard pull” (towing power) of the vessels in all bids received. The CITT also awarded Heiltsuk Horizon costs incurred in submitting the complaint. In a statement late Tuesday, Public Services and Procurement Canada noted it is currently reviewing the CITT's reasons and recommendations in order to determine its next steps. “The contract with Atlantic Towing remains in place,” it added. “Given the importance of the services provided by the Emergency Offshore Towing Vessels in the context of Canada's Oceans Protection Plan, these services will continue. It is important to note that one of the two vessels has already been used in an emergency situation.” Mary Keith, vice president of communications for Irving, issued a statement from Atlantic Towing, pointing out that the tribunal did not declare the firm's bid non-compliant. “This is good news and reaffirms the integrity of the rigorous and transparent award process by PWGSC that also involved a third party fairness monitor,” the statement added. “The Tribunal has requested verification of one item and we are confident in our full compliance. The Bollard Pull on our vessels are verified and certified by one of the world's leading marine certification companies.” https://ottawacitizen.com/news/national/defence-watch/trade-tribunal-calls-for-review-of-west-coast-vessel-contract

Les pilotes de drone doivent immatriculer leurs drones et obtenir un certificat de pilote d'ici le 1er juin 2019 Le 9 janvier 2019 Ottawa (Ontario) Transports Canada Transports Canada est résolu à améliorer la sécurité de l'aviation et du public tout en encourageant l'innovation et la croissance économique dans le secteur des drones. Aujourd'hui, l'honorable Marc Garneau, ministre des Transports, a annoncé le nouveau règlement du Canada pour les systèmes d'aéronefs télépilotés, plus communément appelés drones. Le nouveau règlement qui entrera en vigueur le 1er juin 2019 s'applique à tous les pilotes de drone faisant voler des appareils pesant entre 250 grammes et 25 kilogrammes dans leur champ de vision direct, que ce soit pour le plaisir, le travail ou la recherche. Le nouveau règlement simplifié est le fruit de consultations substantielles menées auprès des Canadiens et de l'industrie. Le règlement définitif instaure deux catégories principales d'opérations de drones : les opérations de base et les opérations avancées. Les catégories reposent sur la distance entre l'appareil et les personnes au sol et sur les règles relatives à l'espace aérien. Chaque catégorie a son propre ensemble de règles faciles à suivre, qui obligent le pilote de drone : à immatriculer son drone et y marquer son numéro d'immatriculation; à passer un examen en ligne et obtenir un certificat de pilote pour les opérations de base ou les opérations avancées; à avoir au moins 14 ans pour les opérations de base et 16 ans pour les opérations avancées, à moins d'être supervisé par une personne titulaire des certificats appropriés; à rester à une altitude inférieure à 122 m (400 pieds) au-dessus du sol; à rester loin du trafic aérien. Seuls les pilotes de drone qui doivent faire voler un drone sans respecter les règles des opérations de base ou des opérations avancées devront demander un certificat d'opérations aériennes spécialisées (COAS) avant de pouvoir voler. Transports Canada encourage les pilotes de drones à prendre le temps nécessaire pour examiner et comprendre parfaitement les nouvelles règles visant les drones au Canada et à suivre un cours offert par une école de pilotage de drone avant de tenter de passer un examen en ligne ou une révision en vol. Les pilotes de drone devront être en mesure de présenter leur certificat de pilote et leur preuve d'immatriculation lorsqu'ils font voler leur drone dès le 1er juin 2019. Cela veut dire qu'ils peuvent en avoir des copies électroniques sur leur appareil mobile ou des copies imprimées. Transports Canada a également créé un site Web amélioré et convivial pour fournir des renseignements sur le nouveau règlement ainsi que des outils utiles pour tous les pilotes de drone, à l'adresse : Canada.ca/securite-drones. Les nouveaux services de drone de Transports Canada sont maintenant disponibles sur notre site Web. Nous invitons les pilotes de drones à créer leur compte en ligne dans le Portail de gestion des drones pour y accéder facilement et en tout temps. Jusqu'à ce que le nouveau règlement entre en vigueur, le 1er juin 2019, les pilotes de drone à des fins récréatives doivent continuer de respecter les règles énoncées dans l'arrêté d'urgence visant l'utilisation des modèles réduits d'aéronefs et les pilotes qui utilisent leur drone pour le travail ou la recherche doivent continuer de respecter les conditions de leur certificat d'opérations aériennes spécialisées. Tous les pilotes de drones doivent également respecter le Code criminel ainsi que la réglementation municipale, provinciale et territoriale. Compromettre la sécurité d'un aéronef est une infraction grave. Toute personne qui enfreint la réglementation risque des amendes additionnelles pouvant atteindre 25 000 $ ou une peine d'emprisonnement, ou les deux. Ces sanctions s'appliquent aux drones de toutes tailles et à tous les types d'utilisation. Citations « Nous avons été attentifs aux commentaires des Canadiens et avons mis à jour notre règlement afin de trouver le juste milieu entre l'aspect pratique et l'utilisation sécuritaire des drones. Les drones appartiennent à un secteur économique important et prometteur qui est susceptible d'améliorer nos vies et de relier les collectivités de tout le pays. Notre nouveau règlement créera de nouvelles possibilités pour les Canadiens en établissant un cadre réglementaire sécuritaire et prévisible qui permettra à l'industrie d'innover et aux pilotes de drone à des fins récréatives, et autres, d'accéder en toute sécurité à l'espace aérien canadien. » L'honorable Marc Garneau Ministre des Transports https://www.canada.ca/fr/transports-canada/nouvelles/2019/01/le-ministre-garneau-devoile-le-nouveau-reglement-du-canada-sur-la-securite-des-drones.html

DEFENSE LOGISTICS AGENCY McRae Industries Inc.,* Mt. Gilead, North Carolina, has been awarded a maximum $9,934,688 modification (P00014) exercising the fourth one-year option period of one-year base contract (SPE1C1-15-D-1023) with four one-year option periods for hot-weather flame resistant combat boots. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is North Carolina, with a Jan. 8, 2020, performance completion date. Using customer is Army. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1726571/source/GovDelivery/

By: Aaron Mehta WASHINGTON — When the U.K. rolled out its Modernising Defence Programme report last month, it highlighted a need to increase stores of weaponry to deal with threats from great powers around the globe. In his speech unveiling the document, Defence Secretary Gavin Williamson specifically stated that to “improve the combat effectiveness of our forces, we will re-prioritize the current defense program to increase weapon stockpiles. And we are accelerating work to assure the resilience of our defense systems and capabilities.” But what does that actually entail? During a Tuesday visit to Washington, Director for Strategic Planning Will Jessett said the U.K. plans to go about increasing weapon stockpiles in two ways. The first is the easy route: throw money at the problem. And a certain amount — the Ministry of Defence employee wouldn't say exactly how much — of the recent budget increase given by Parliament will indeed be going toward increasing stockpiles of armaments. The second part is more difficult, but goes to a throughline for the strategy document: the need to be smarter about how the British military uses its gear. “We've spend a shedload of money on producing the force structure that we have already. We're not necessarily generating and using it as effectively as we might have done,” Jessett said. “The first thing to do is to make sure that we are making the best of the existing capability that we have, and that [includes] making sure that we've got both the weapon stockpiles and the spares to make sure that you can actual[ly] generate the right numbers of aircraft squadrons." “So some of this will be the new money out of the couple of billion but a lot of this is going to be telling the services themselves,” he added. “There isn't a dollar figure, but there are strong incentives now back on the services to say: ‘Guys, you've got to [use] the capabilities that you've got already.' ” Looking at the Pentagon's efforts over the last few years shows that may be easier said than done. Pushing to find new efficiencies inside the U.S. Defense Department is an annual affair, with the latest attempt delayed by the removal of Chief Management Officer Jay Gibson and the fallout from the resignation of Defense Secretary Jim Mattis. And building up missile stockpiles is a logistical challenge for the department right now, with the Pentagon warning last May that producers of vital parts and materials are on the verge of going out of business or beholden to foreign ownership. Jessett acknowledged the Brexit-shaped elephant in the room, noting that the ability of the MoD to invest funding into new defense priorities will be directly impacted by any deal reached between Britain and the rest of Europe, particularly with foreign-made equipment. “Amongst the reasons we started to face this affordability delta in 2017 were because exchange rates did fall, relative to where they were in 2015,” he said. “I think back to this [question] about the terms of the deal. If we get a deal that's OK, I can imagine, personally, exchange rates not just stabilizing but somewhat improving. If not, it is by definition going to add further pressure into this.” But, he added, “that's not what we're planning for at the moment.” https://www.defensenews.com/global/europe/2019/01/08/to-build-stockpiles-of-weapons-uk-looking-at-two-pronged-approach

Angel Krasimirov, Tsvetelia Tsolova SOFIA (Reuters) - The Bulgarian government has approved a plan to start talks with the United States on buying eight new F-16 fighter jets to replace its ageing Soviet-made MiG-29s and improve compliance with NATO standards, the defense minister said on Wednesday. A deal for Lockheed Martin's F-16V Block 70 would be worth around 1.8 billion levs ($1.1 billion), Bulgaria's biggest military procurement since the fall of Communist rule some 30 years ago. The decision still requires parliament's approval. Other bidders had included Sweden, with Saab's Gripen jets, and Italy, with second-hand Eurofighters. Senior defense ministry and army officials say the F-16 is a multi-role fighter plane that had been tested in battle and had a long lifespan. The defense ministry has previously said that the United States does not need additional licenses and agreements to supply the war plans with the necessary weaponry and licenses, unlike the offers from Sweden and Italy. “The government is proposing to the parliament to allow it to start talks with the United States to acquire new war planes,” Defense Minister Krasimir Karakachanov told reporters. The center-right coalition government has a thin majority in parliament, which is expected to vote on the move next week. The plan has spurred heated political debates in the Black Sea country with supporters hailing it as a strategic choice for Bulgaria, whose NATO neighbors are also flying F-16s, while critics accused the government of breaching the tender rules. On Tuesday, the White House said the United States was ready to work with the government to tailor a deal that will fit Bulgaria's budgetary and operational requirements. Its bid at present exceeds the tender's estimated limit, officials said. “We believe that the F-16 Block 70 offers Bulgaria the best possible combination of price, capability and interoperability with other NATO air forces,” U.S. President Donald Trump's administration said in a statement. Bulgarian President Rumen Radev, a former air force commander and frequent critic of Prime Minister Boyko Borissov, is believed to favor the Swedish bid and has criticized the process as flawed and “a triumph of lobbying”. Critics have questioned whether the United States can deliver the first two F-16 jets within two years as required and pointed to a U.S. proposal for a one-off payment upon contracting rather than offering a long-term payment scheme as preferred in the tender. Sweden has expressed its disappointment over the decision and said its offer was well below the estimated budget, provided for deferred payment and was ready to deliver on time. The question of which warplanes to buy has been vexing successive governments in Bulgaria for more than a decade. Borissov's government re-launched the tender in July, after a parliament commission ruled that a previous process which favored the Gripen jets, should be reviewed. ($1 = 1.7057 leva) Editing by Kevin Liffey and Susan Fenton https://www.reuters.com/article/us-bulgaria-defence-jets/bulgaria-decides-to-start-talks-with-u-s-on-f-16-jet-deal-idUSKCN1P30W9

By: Valerie Insinna WASHINGTON — As the U.S. government shutdown continues into its 18th day, defense firms and industry advocates are beginning to worry that the pause in business could eat into companies' cash flow. The Defense Department is funded for fiscal 2019, with Congress having passed a spending bill for the new fiscal year in September. That means work on the military's weapons programs continue apace, but many defense companies also hold contracts with agencies that are not currently funded, like the Department of Homeland Security — which includes the Coast Guard as well as Customs and Border Protection — and NASA. The Aerospace Industries Association, a lobbying group that represents defense and commercial aviation companies, warned that impacts to the aerospace sector extend beyond the 800,000 federal workers who are furloughed or working without pay. For example, weapons sales and transfers to U.S. allies and partners are stalled as a result of the closure of the departments of State and Commerce, AIA said in a Jan. 8 statement. Research projects at NASA, the Federal Aviation Administration, and National Oceanic and Atmospheric Administration are suspended, “setting back development of game changing technologies.” And meetings between the government and industry have been canceled or delayed. “Every day the shutdown lasts, the impacts grow and become more difficult and more expensive to fix,” said AIA President and CEO Eric Fanning. “It's time to get these dedicated public servants back to work.” Tony Moraco, the CEO of government service and information technology firm SAIC, told investors Jan. 7 that the effects of the shutdown are expected to be short term and primarily affecting accounts with NASA, the FAA and the U.S. Department of Agriculture. Moraco characterized the effect on SAIC and Engility — the latter of which is set to merge with the former this year — as a “modest impact on revenues and potentially cash collection, which we think we can recover — mostly — if this is resolved in the near term.” But SAIC Chief Financial Officer Charlie Mathis said the government is already behind on payments to the two companies by about $40 million to $50 million. “If we get through this quickly, they could catch up,” he said, but the shutdown would have to be resolved within a week for the companies to hit their cash-flow goals for their fiscal year ending Jan. 31. Furthermore, the companies are seeing a hit of about $10 million per week in revenue as the shutdown progresses, and “if it continues, that number could increase,” Mathis said. The probability of an extended shutdown seems to be rising. The government shutdown started Dec. 22 amid disagreements between President Donald Trump and Congress over funding for a border wall that would separate the United States and Mexico. But with Democrats now controlling the House of Representatives, a deal on funding for the wall may take weeks and could propel this shutdown past the 21-day mark of the 1995 shutdown, currently the longest on the books, according to CNN. Defense contractors will eventually get paid back for work accomplished while the government was shut down, but there could be long-standing consequences. If the shutdown persists for a protracted amount of time, there could be repercussions for the federal government's recruiting pipeline, as well as the balance of federal employees and contractors, said Byron Callan, an analyst for Capital Alpha Partners. “How will this shutdown impact the ability of federal agencies impacted by the shut-down to recruit and retain skilled individuals?” he wrote in an emailed analysis of SAIC's investor meeting. “There might be near-term collateral damage if people leave government service, but a 1-3 year factor to consider is how this shutdown and the potential for future ones accelerates reliance on federal service contractors.” https://www.defensenews.com/industry/2019/01/08/us-government-shutdown-creating-angst-for-defense-contractors

By: Mark Pomerleau The Navy awarded a contract for cyber, electronic warfare and information warfare services to nine companies in a deal that could eventually be worth as much as $962 million. The companies include Grove Resource Solutions Inc., Millennium Corp., SimVentions Inc., BAE Systems Technology Solutions & Services Inc., Booz Allen Hamilton, CACI NSS Inc., General Dynamics Information Technology, Leidos, Northrop Grumman Systems Corp. and Scientific Research Corp. The new contract, run out of the Navy's Space and Naval Warfare Systems Center in South Carolina, will provide cyber mission engineering support services and deliver “information warfare capabilities through sea, air, land, space, electromagnetic, and cyber domains through the full range of military operations and levels of war,” according to a Nov. 30 contract announcement. According to a Jan. 7 press release from General Dynamics, the company will compete for individual task orders to provide “state-of-the-art solutions for the Navy and Marine Corps' warfighting needs.” A spokesman clarified that GDIT expects to compete for the opportunity to provide C4ISR capability to the Navy and Marines with the potential to develop prototypes depending on specific requirements. The spokesperson added that the contract might present opportunities to assist in the Navy's premier electronic warfare program Surface Electronic Warfare Improvement Program as requirements overlap. https://www.c4isrnet.com/c2-comms/2019/01/08/9-companies-will-compete-for-work-on-the-navys-giant-engineering-contract

By: Burak Ege Bekdil ANKARA, Turkey — Turkey's procurement authorities are working to identify why some of the industry's most talented individuals are migrating to Western countries — an exodus that could stall several indigenous programs. Turkey's procurement authority, the Presidency of Defence Industries — also known as SSB and which directly reports to President Recep Tayyip Erdogan — conducted a survey to better understand the migration. A parliamentary motion revealed that in recent months a total of 272 defense industryofficials, mostly senior engineers, fled Turkey for new jobs abroad, with the Netherlands, the United States and Germany topping the list, respectively. Other recipient countries are Britain, Canada, Australia, Austria, Belgium, Italy, Sweden, Poland, France, Finland, Japan, Thailand, Qatar, Switzerland and Ireland, according to the SSB's internal study. The companies affected by the exodus are state-controlled entities: defense electronics specialist Aselsan, Turkey's largest defense firm; military software concern Havelsan; missile-maker Roketsan; defense technologies firm STM; Turkish Aerospace Industries; and SDT. Findings among those who left and responded to the survey include: 41 percent are in the 26-30 age group. “This highlights a trend among the relatively young professionals to seek new opportunities abroad,” one SSB official noted. 40 percent have graduate degrees; 54 percent have postgraduate degrees; and 6 percent have doctorates or higher degrees. 59 percent have more than four years of experience in the Turkish industry. The largest group among those who left (26 percent) cited “limited chance of promotion and professional progress” as the primary reason to seek jobs in foreign companies. Other reasons cited include lack of equal opportunities in promotion (14 percent); low salaries (10 percent); and discrimination, mobbing and injustice at work (10 percent). 60 percent said they found jobs at foreign defense companies after they applied for vacancies. 61 percent are engineers and 21 percent are industry researchers. Among the respondents' expectations before they would consider returning to Turkish jobs were higher salaries, better working conditions, full use of annual leave, professional management and support from top management for further academic work. They also want the political situation in Turkey to normalize and for employees to win social rights in line with European Union standards. They also want to guarantee there won't be employee discrimination according to political beliefs, life styles and religious faith. They added that mobbing should stop and that employees be offered equal opportunities. A recent article in The New York Times, citing the Turkish Statistical Institute, said more than a quarter-million Turks emigrated in 2017, an increase of 42 percent over 2016, when nearly 178,000 citizens left the country. The number of Turks applying for asylum worldwide jumped by 10,000 in 2017 to more than 33,000. “The flight of people, talent and capital is being driven by a powerful combination of factors that have come to define life under Mr. Erdogan and that his opponents increasingly despair is here to stay," according to The New York Times. "They include fear of political persecution, terrorism, a deepening distrust of the judiciary and the arbitrariness of the rule of law, and a deteriorating business climate, accelerated by worries that Mr. Erdogan is unsoundly manipulating management of the economy to benefit himself and his inner circle.” One senior engineer who left his Turkish company for a job with a non-Turkish, European business told Defense News: “I know several colleagues who want to leave but have not yet found the right jobs. I expect the brain drain to gain pace in the next years, depending on Western companies' capacity to employ more Turkish talent.” https://www.defensenews.com/industry/2019/01/08/turkish-brain-drain-why-are-defense-industry-officials-ditching-their-jobs-in-turkey-for-work-abroad