Nouvelles

By: Christina Mackenzie PARIS — As France slowly emerges from an almost complete industry shutdown imposed March 16 in response to the COVID-19 pandemic, defense company executives are considering their next steps. Stephane Mayer, Eric Trappier and Herve Guillou — respectively presidents of the groups of French industries for land and air-land (GICAT), air and space (GIFAS), and naval (GICAN) systems — were witnesses at an April 23 hearing by the National Assembly's Defence Committee. They said that despite the partial return of employees to work, the supply chain is still experiencing problems. The three industry leaders explained that following discussions with unions and the implementation of modifications in the workplace that enable employees to work while maintaining a distance of at least 1 meter between each other, about 30 percent of the workforce on production sites was back by April 23. Those able to work from home are doing so, they added. More employees returned to work on May 11 when the lockdown was eased, but personnel who can continue to work from home are being urged to do, they said. Meanwhile, shifts are being modified to ensure workers don't arrive and leave at the same time, they added. However, all three agreed that the supply chain had been interrupted, most notably in the aeronautical sector because of its dual military-civilian role and the near-total halt in air traffic, which negatively affected imports. They explained that during the lockdown, defense industry leaders and the French procurement office DGA jointly set out priorities for programs and established what activities must be maintained to ensure the military continues its missions within France and in foreign theaters. How are exports performing? All three were also unanimous in their analysis that the French defense sector could take a hit in the export market, noting that German companies never completely stopped their activities; China was quick to reconnect with potential export clients; and the American defense sector benefits both from the continuation of much of its production capacity and massive support from the federal government. This was later repeated by Guillou at a video conference organized this week by the Foundation for Strategic Research think tank. “None of us can survive unless we have 50 percent of our order intake from the export market," Guillou said. "Even if the French market returns to normal, we still have that 50 percent export segment to worry about. If we want to remain competitive on the world export market, keeping in mind that the Chinese ramped up before we did, that the Russians, Germans and Dutch never stopped, we will have to restore our competitivity extremely quickly ... to stay in the race and not lose a part of this market forever.” He also stressed that the need to catch up is a major concern of the French defense industry. What about the supply chain? The supply chain in France is largely made up of small and medium-sized enterprises. Eric Beranger, CEO of European missile-maker MBDA, told French Armed Forces Minister Florence Parly on May 6 that some of the 1,200 French suppliers that work for the company are now very fragile due to the developing economic crisis. Guillou remarked during the video conference that the “terrific solidarity” among the supply chain and subcontractors, as well the prime contractors in the naval sector, is something he'd never come across in his 40-year career. But he added that the small and medium-sized enterprises serving the aeronautical sector are suffering more. The Armed Forces Ministry began slowly ramping up on May 7 based on two principles: preserving the health of staff and their families (all personnel, civilian or military, have been given masks, which must be worn by those who work in confined spaces such as workshops, restaurants or vehicles); and continuing with the ministry's essential mission. This includes programs meant to keep fielded weapons and equipment in operational condition, but it also concerns the delivery of new materials. “The reversibility of the procedures means that were the epidemic to break-out again within the ministry we would be able to handle it,” a May 7 ministry statement said. https://www.defensenews.com/industry/2020/05/21/french-defense-industry-plays-catch-up-as-lockdown-partially-lifts/

U.S. TRANSPORTATION COMMAND Marine Terminals Corp., San Pedro, California, has been awarded a $95,835,034 firm-fixed-price contract (HTC711-20-D-R046) providing stevedoring and related terminal services at ports in Northern California. Work will be performed at the Military Ocean Terminal, Concord, California; and the Port of Oakland, California. The contract period of performance is from Aug. 7, 2020, to Aug. 6, 2025. Fiscal 2020 transportation working capital funds were obligated at award. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, in the contracting activity. NAVY AECOM-BAKER-CARDNO NAVFAC Atlantic Planning JV, Arlington, Virginia, is awarded a $95,000,000 maximum amount, firm-fixed-price, indefinite-delivery/indefinite-quantity, architect-engineering contract for architect-engineer services for preparation of Navy and Marine Corps planning and engineering services for work located primarily in the continental U.S. east coast, but also worldwide. The work to be performed provides for: (a) Plans: global shore infrastructure plans; installation development plans; regional integration plans; functional plans; maintenance and sustainment plans; integrated product support plans; encroachment action plans; family housing and bachelor quarters comprehensive neighborhood plans; activity overview plans; and installation appearance plans; (b) Project Planning Documents: the preparation of military construction project planning documentation; preparation of construction cost estimates, preliminary and parametric cost estimates and siting-land use studies/analyses; special site approvals; economic analyses; asset evaluations; basic facility requirements documentation; facilities planning documents; preliminary hazard analyses; preliminary hazard lists, and sustainable design studies; (c) Studies: concept studies; special planning studies, business case analysis studies and traffic/parking/movement studies; facilities planning studies, feasibility studies, safety studies and air installation compatible use zones; range air installation compatible use zones studies; site studies; facilities life cycle studies; activity planning and management models and electronic land use/planning tools/studies. Work is expected to be complete by May 2025. No task orders are being issued at this time. The term of the contract is not to exceed 60 months. Fiscal 2020 operations and maintenance (Navy) (O&M,N) contract funds in the amount of $10,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by O&M, N. This contract was competitively procured via the Navy Electronic Commerce Online website and two proposals were received. The Naval Facilities Engineering Command Atlantic, Norfolk, Virginia, is the contracting activity (N62470-20-D-0006). Lockheed Martin Corp. Rotary and Mission Systems, Baltimore, Maryland, is awarded a $48,965,154 firm-fixed-price modification to previously awarded contract N63394-20-C0004 to exercise options for launch sequencer MK 5 Mod 2 production units in support of the Vertical Launch System. Work will be performed in Oldsmar, Florida. The Vertical Launch System provides area and self-defense, anti-air warfare capabilities, counter-air and land attack cruise missile defense and surface and subsurface warfare capabilities. Work is expected to be complete by April 2022. Fiscal 2019 shipbuilding and conversion (Navy) funds in the amount of $48,965,154 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Surface Warfare Center, Port Hueneme Division, Port Hueneme, California, is the contracting activity. The Boeing Co., Seattle, Washington, is awarded a $27,770,370 modification (P00174) to previously awarded cost-plus-fixed-fee contract N00019-14-C-0067. This modification procures integrated logistics support for the Boeing P-8A Poseidon warfare aircraft for the Navy, the government of Australia, and the government of the United Kingdom. Work will be performed in Seattle, Washington (68%); Jacksonville, North Carolina (16%); Whidbey Island, Washington (4%); Sigonella, Italy (3%); Kadena, Japan (2%); Bahrain, Bahrain (2%); Misawa, Japan (2%); Kaneohe Bay, Hawaii (2%); and various locations within and outside the continental U.S. (1%). Work is expected to be complete by March 2023. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $8,391,473; Royal Australian Air Force cooperative program funds in the amount of $256,187; and Foreign Military Sales funds in the amount of $133,083 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. DRS Laurel Technologies, Johnstown, Pennsylvania, is awarded a $26,047,878 firm-fixed-price modification to previously-awarded contract N63394-20-C-0002 to exercise options for launch control unit Mk 235 Mod 11 and Mod 12 production units in support of the Vertical Launch System (VLS). Work will be performed in Johnstown, Pennsylvania. This option exercise is for the manufacture, assembly, test and delivery of additional production units of the VLS launch sequencer launch control unit Mk 235 Mod 11 and 12, part numbers 7104280-119 and 7104280-129, respectively. The VLS provides area and self-defense, anti-air warfare, surface and subsurface capabilities, counter-air and land attack cruise missile defense, and is equipped with two redundant launch control units, each of which is electrically interfaced with all of the launch sequencers in the system. Work is expected to be complete by February 2021. Fiscal 2020 shipbuilding and conversion (Navy) funding in the amount of $26,047,878 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Surface Warfare Center, Port Hueneme Division, Port Hueneme, California, is the contracting activity. Management Services Group Inc.,* doing business as Global Technical Systems, Virginia Beach, Virginia, is awarded a $24,385,746 firm-fixed-price modification to previously-awarded contract N00024-20-C-5608 for procurement of network, processing and storage (NPS) technical insertion (TI) 16, modification (MOD) 1 production equipment, which provides computer processing and memory, data storage and extraction, network systems and input/output interfaces to host software applications of Navy combat systems. This contract combines purchases for the Navy (62%) and the government of the Commonwealth of Australia (38%) under the Foreign Military Sales (FMS) program. Work will be performed in Virginia Beach, Virginia. The NPS program consists of enterprise products in use across surface Navy combat systems which introduce powerful, commercially available, off-the-shelf processors as part of a general strategy to achieve a modular and open architecture design. NPS is comprised of two different common processing system enclosure assemblies and three variants: advanced storage area network, core computing system, and air-cooled processing and storage subsystem. Aegis weapon system Aegis modernization upgrade equipment systems are also included in this procurement and align requirements to include the Aegis local area network interconnect system, Aegis conversion equipment group Input/Output 1 and 2, and digital video display system. Work is expected to be complete by December 2021. Fiscal 2020 shipbuilding and conversion (Navy) funds; FMS Australia funds; 2015 shipbuilding and conversion (Navy) funds; 2016 shipbuilding and conversion (Navy) funds; and 2020 other procurement (Navy) funds in the amount of $24,385,746 will be obligated at time of award, and funds in the amount of $39,356 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Innovative Defense Technologies LLC,* Arlington, Virginia, is awarded a $22,506,572 modification (P00007) to previously awarded cost-plus-fixed-fee contract N00014-19-C-1054 for the Cloud to Edge Environment. This modification adds Options 5 through 10, and exercises Options 5, 9 and 10, which increases the contract value by $22,506,572. Under this modification, the contractor will continue work to deliver a secure development and operations (SecDevOps) environment enabling cloud-based collaborative development, simulation, testing and certification of evolving Navy software systems. Work will be performed in Arlington, Virginia (68%); Mount Laurel, New Jersey (23%); Washington, D.C. (6%); Rhode Island (2%); and various places below 1%. Work is expected to be complete by February 2022. Fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $77,844 are obligated at the time of award and will expire at the end of the current fiscal year. Fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $20,453,641 are obligated at the time of award and will not expire at the end of the current fiscal year. The Office of Naval Research, Arlington, Virginia, is the contracting activity. Alere San Diego Inc., doing business as Immunalysis Corp., San Diego, California, is awarded a $7,066,152 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for U.S. Food and Drug Administration and quality management documented fentanyl/norfentanyl immunoassay reagent kits for use with the currently installed Beckman Coulter AU5800 series systems for the Department of Defense Drug Demand Reduction Program. This is a two-year single award contract, and deliveries are expected to be complete by May 2022. Fiscal 2020 defense-wide, one-year operations and maintenance funds will be obligated on decentralized individual delivery orders during the base period. No funds will be obligated at the time of award and the minimum guarantee under the contract is 100 kits. The contract was competitively procured via the Federal Business Opportunities website, and three offers were received. The Naval Medical Logistics Command, Fort Detrick, Maryland, is the contracting activity (N62645-20-D-5004). ARMY Raytheon Co., Tewksbury, Massachusetts, was awarded a $92,370,000 hybrid (cost-no-fee, cost-plus-fixed-fee, and firm-fixed-price) contract for sustainment, maintenance, training, refurbishment, overhaul, engineering services and spares to support ongoing operations of the National Advanced Surface to Air Missile System. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 14, 2024. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-20-D-0008). AECOM Management Services Inc., Germantown, Maryland, was awarded a $10,507,113 modification (0001BW) to contract W52P1J-12-G-0028 for logistics support services, including maintenance, supply and transportation. Work will be performed at Fort Polk, Louisiana, with an estimated completion date of Nov. 17, 2020. Fiscal 2020 operations and maintenance (Army) funds in the amount of $10,507,113 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. Integration Innovation Inc.,* Huntsville, Alabama, was awarded an $8,310,128 modification (000117) to contract W31P4Q-18-A-0089 for the International Apache Technical Lifecycle Support task order. Work will be performed in Huntsville, Alabama, with an estimated completion date of June 4, 2021. Fiscal 2020 Foreign Military Sales (Egypt, India, Indonesia, Israel, Japan, Kuwait, Netherlands, Qatar, Saudi Arabia, Singapore, Republic of Korea, Taiwan, United Arab Emirates and United Kingdom) funds in the amount of $8,310,128 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. DEFENSE LOGISTICS AGENCY Creighton AB Inc.,* Reidsville, North Carolina, has been awarded a maximum $12,080,120 indefinite-delivery/indefinite-quantity contract for men's and women's dress coats. This was a competitive acquisition with two responses received. This is a one-year base contract with four one-year option periods. Locations of performance are North Carolina and New York, with a May 20, 2021, performance completion date. Using military service is Air Force. 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-1274). AIR FORCE LinQuest Corp., Los Angeles, California, has been awarded an $11,008,552 firm-fixed-price modification (P00047) to contract FA8819-15-F-0001 for the Space and Missile Systems Center technical support follow-on task order bridge extension. This modification provides continued technical support services for the Special Programs Directorate, Los Angeles Air Force Base, California. Work will be performed at Los Angeles AFB, California, and is expected to be completed May 31, 2021. Fiscal 2020 operations and maintenance funds in the amount of $856,651; and fiscal 2020 research, development, test and evaluation funds in the amount of $3,000,000 are obligated at the time of award. The U.S. Space Force, Space and Missile Systems Center, Special Programs Directorate, Los Angeles AFB, California, is the contracting activity. Central Coast Water Authority, Buellton, California, has been awarded a $7,600,000 indefinite-delivery/indefinite-quantity delivery order to provide Vandenberg Air Force Base, California, and outlying municipalities with potable water. Work will be provided at Vandenberg AFB, California, and is expected to be completed June 14, 2032. The cumulative value of this contract is $165,443,388. Fiscal 2020 operations and maintenance funds in the amount of $7,593,715 are being obligated at the time of award. The 30th Contracting Squadron, Vandenberg AFB, California, is the contracting activity (F04684-92-D-0013). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2194990/source/GovDelivery/

By JAMES KITFIELDon May 22, 2020 at 4:01 AM For a brief moment it seemed that the worst global pandemic in a century might lead to increased comity between the United States, China and Russia after years of geopolitical eye-gauging. As the virus spread there were early signs of a pause in the escalating cycle of military brinksmanship, cyberattacks, disinformation campaigns and trade wars that has badly shaken the rules-based international order in this era of great power competition. Beijing seemed to initially embrace a spirit of cooperation when it donated protective gear and testing equipment to hard hit countries in Europe. President Trump for months was uncharacteristically effusive in his praise of Chinese President Xi Jinping's efforts to combat the virus. Russian President Vladimir Putin got into the soft power act in early April when he dispatched an An-124 military transport to New York filled with donated masks and ventilators. (Of course, you can also argue it was a highly effective information operation designed to undermine U.S. standing in the world.) That moment was short lived. “Unfortunately, this crisis is likely to unfold in three consecutive waves, with a public health crisis followed by an economic crisis, quite possibly followed by a security crisis,” said David Kilcullen, author of the recent book “The Dragons and Snakes: How the Rest Learned to Fight the West,” and a former special adviser to Gen. David Petraeus in Iraq, and the U.S. Secretary of State. The United States is already experiencing high levels of domestic unrest at a time of paralyzing partisan rancor, he noted, and the discord will certainly increase as the presidential election nears in November. Adding to that combustible mixture is likely to be a second wave of the virus expected to hit in the fall, and foreign actors like Russian and China determined to use disinformation to stoke domestic divisions during the election. “Given the likelihood of internal instability and anti-government anger here and around the world, there will be a huge incentive for leaders who personalize politics like Trump, [Russian President Vladimir] Putin and [Chinese President] Xi Jinping to look for external scapegoats for their domestic troubles, which has already started to happen,” said Kilcullen. “This crisis also comes at a point when the international system that we've known since the end of World War II was already rotting and weaker than it appears. It may only take one big shock to bring that whole structure down, and, if we're not very careful, the pandemic could be that shock. So this is the most dangerous geopolitical dynamic I have seen in my entire career.” As it became clear the Chinese Communist Party covered up the initial outbreak of the novel coronavirus in Wuhan, wasting precious time and allowing it to blossom into a global pandemic, Beijing launched a campaign of intimidation and economic threats to mute international criticism. Borrowing a page from Russian disinformation operations, Beijing posited the conspiracy theory that the virus originated with the U.S. military. Both China and Russia pushed alarmist narratives about the pandemic on social media to sow division and panic inside the United States. Much of the protective equipment Beijing “donated” to the West carried a price tag and turned out to be defective. In his own campaign of blame shifting and heated rhetoric, President Donald Trump accused China of being responsible for an attack on the United States that “is worse that Pearl Harbor,” and “worse than the World Trade Center” that fell in the 9/11 terrorist attacks. Chinese incompetence in dealing with the virus, Trump tweeted this week, is responsible for “mass Worldwide killing!” Trump darkly hinted in mid-April that he had information that a virology lab in Wuhan played an important role in the virus' creation, even though the U.S. Intelligence Community consensus was that the virology lab in Wuhan had nothing to do the virus' creation or origins. Secretary of State Mike Pompeo insisted there is “enormous evidence” the coronavirus originated in that lab. “We greatly underestimated the degree to which Beijing is ideologically and politically hostile to free nations,” Pompeo told reporters this week, after sending a rare, high-level message of congratulations to recently reelected Taiwanese President Tsai Ing-Wen, who has rejected the “one country, two systems” construct that has kept the peace between China and Taiwan for nearly half a century. As the Trump administration weighs retribution against China, it has continued to ratchet up the rhetoric and provocations, angering and worrying allies by cutting critical funding to the World Health Organization (WHO) in the midst of the pandemic, and boycotting a virtual meeting of G-20 nations that attempted to coordinate an international response to the crisis, leaving a leadership gap that China was happy to help fill. Meanwhile, populist leaders and autocratic regimes around the world are using the threat of the pandemic to assume extraordinary powers and crack down on their political opposition in what the United Nations Special Rapporteur for Counterterrorism and Human Rights called an “an epidemic of authoritarianism,” according to the The New York Times. Shaky World Order Even before the pandemic the post-WW II international order that the United States constructed and led for more than half a century was on shaky ground. The global institutions, alliances and rules governing international relations has been challenged by assertive autocratic regimes like China and Russia, and eroded from within by inward-looking nationalist-populists movements spreading throughout the Western democracies. The liberal international order has also been largely abandoned by its leader as Donald Trump's administration retreats further into “America First” isolationism. The Trump doctrine in international affairs actively seeks to undermine the institutions of global order, whether it's the World Health and Trade Organizations, the UN, the European Union or NATO. The administration has rejected or abolished all manner of multilateral agreements and treaties designed to peacefully constrain international rivalries, including the Trans-Pacific Partnership Agreement, the Paris Climate Agreement, the Iran nuclear deal, the Intermediate-Range Nuclear Forces treaty, and quite possibly next year the New Strategic Arms Reduction Treaty (New START). A Dark History History is rife with cautionary examples of natural disasters or economic crises conflating with geopolitical tensions, with cataclysmic results. The catastrophic 1918 Spanish flu pandemic, which killed more than 20 million victims worldwide, was accelerated and spread by troop movements during World War I. With many Americans disillusioned by the war and loss, the United States turned insular and isolationist during the 1920s, rejecting the League of Nations, dramatically curtailing immigration and erecting steep tariff barriers to trade. Much of the rest of the world followed suit. The U.S. stock market crash of 1929 was compounded the next year by one of the worst droughts in history. When the Japanese invaded China two years later, and Adolf Hitler became German chancellor soon after, there was no League of Nations nor stabilizing trading systems to contain the war fever that swept the globe and became World War II. “When you think back to 1918 and the Spanish flu, it's worth remembering that more people died in the second wave than the first, and the Great Depression and the 1930s taught us that bad economic conditions can be transformative,” said Joseph Nye, a professor emeritus and former Dean of the Harvard's Kennedy School of Government, speaking recently on a videoconference organized by The National Interest. “The point is, in the current pandemic we're likely only in Act 1 of a multi-act play.” Combustible Leadership The very real potential for the pandemic crisis to propel the major powers towards outright military conflict was noted recently by the Chinese Ministry of State Security, Beijing's top intelligence agency. In a report for Xi Jinping and the senior Chinese leadership it reportedly concluded that global anti-China sentiment being stoked by the Trump administration has reached its highest peak since the 1989 Tiananmen Square crackdown, and as a result China needs to be prepared for a worst-case scenario of armed confrontation with the United States. Despite the warnings, Xi Jinping has doubled down in recent months on provocative military maneuvers in its neighboring seas, sending its Liaoning carrier battle group and military flights off the coast of Taiwan; conducting anti-submarine exercises in contested areas of the South China Sea; ramming and sinking a Vietnamese fishing boat near the disputed Paracel Islands; dispatching a fishing boat “militia” to harass Philippine counterparts near the contested Spratly Islands; and harassing a Malaysian drillship. Some analysts see those moves as an attempt by Xi Jinping to show strength and bolster his image at home among a Chinese populace wearied by the pandemic shutdowns and economic disruptions. Those provocations are exactly the kind of saber-rattling that can escalate dangerously in a time of crisis. George Beebe is a former director of the CIA's Russia analysis section, and author of the book “The Russia Trap: How Our Shadow War with Russia Could Spiral into Catastrophe.” “My concern is that the major power leaders Putin, Xi and Trump all tend to personalize international relations and politics. They are all going through severe economic and political distress. Each of them is convinced that their rivals are trying to exploit the pandemic crisis, and not one of them is dealing from a position of strength and confidence,” he told me. Putin has long felt betrayed and threatened by the United States, Beebe noted, and Xi Jinping is convinced that America is trying to thwart China's rise. One of the few constants in Trump's worldview is the conviction that China has taken advantage of the United States with trade going back decades. “So there's a lot of fear and emotion and very little trust in the relationships between these leaders during a time of great strain, and their communications and diplomatic mechanisms to manage a crisis if one occurs have atrophied,” said Beebe. “Given that personalities and personal relationships among national leaders are far more important in international affairs than a lot of people appreciate, I do worry that we're entering a very dangerous period when cooler heads may not prevail among the great power leaders.” https://breakingdefense.com/2020/05/will-covid-19-kill-the-liberal-world-order

May 20, 2020 - Standing for Main Ground Combat System, MGCS is a joint Franco-German defence project. The programme, to be implemented under German political leadership, is tasked with developing a main combat system to succeed the Bundeswehr's Leopard 2 and the French Army's Leclerc starting in 2035. Making the start of the MGCS procurement programme Krauss-Maffei Wegmann (KMW), Nexter Systems and Rheinmetall AG established an ARGE in December 2019. Now, the partners and the German Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw), acting in the name of Germany and France, have signed a contract for the “System Architecture Definition Study - Part 1” (SADS Part 1). This contract sounds the industrial starting gun for a MGCS Demonstration Phase At the Franco-German Ministerial Council meeting in Toulouse on 16 October 2019, the defence ministers of both nations, Florence Parly and Annegret Kramp-Karrenbauer, emphasized their commitment to developing the MGCS. The ARGE is a German acronym standing for Arbeitsgemeinschaft, or “working group”. Under German law, the ARGE serves as the contractual partner of the procurement authority (BAAINBw) during the first phase of the programme. Officials of the three companies represent the ARGE vis-à-vis third parties. The aim of the study is to harmonize the final MGCS concepts of the previous phase, to analyse further details, and to propose a common multi-platform architecture. The three contractual partners will assess various aspects of different concepts: technical feasibility in the projected timeframe allotted for the programme; ability to fulfil the operational needs of both armies; efficiency and compatibility with national “systems of systems” (SCORPION for France and Digitization of Land-Based Operations (D-LBO) for Germany). Workshares in the SADS Part 1 are to be distributed equally between France and Germany on a fifty-fifty basis. The first phase of architecture work is expected to last 18 months. View source version on Rheinmetall : https://www.rheinmetall-defence.com/en/rheinmetall_defence/public_relations/news/latest_news/index_23936.php

By: Joe Gould WASHINGTON ― More than two dozen Democrats are demanding that House Armed Services Committee leaders cut defense spending in the 2021 defense policy bill, saying the money would be better spent combating the coronavirus pandemic. A May 19 letter, mostly from Congressional Progressive Caucus members, marked a prelude to what could be complicated efforts to pass the National Defense Authorization Act in the Democrat-led House. The panel is expected in the coming weeks to introduce and mark up a draft, in line with the $740 billion top line set by the 2019 budget deal. But 29 Democrats ― led by House Progressive Caucus Co-Chair Mark Pocan of Wisconsin and Rep. Barbara Lee, a senior appropriator and California progressive ― said the defense spending should be lower than last year's $738 billion top line. With Americans dying from COVID-19 by the thousands, tax dollars would be better spent on an expansion of testing, contact tracing, treatment and vaccine development, they said. “Congress must remain focused on responding to the coronavirus pandemic and distributing needed aid domestically,” the lawmakers wrote. “In order to do so, appropriators must have access to increased levels of non-defense spending which could be constrained by any increase to defense spending.” “Right now, the coronavirus is our greatest adversary. It has killed more than 90,000 Americans, far surpassing the number of casualties during the Vietnam War,” the letter read. “America needs a coronavirus cure, not more war. We need more testing, not more bombs." How the loss of support from 29 House Democrats will factor into passage of the NDAA remains to be seen. In a note accompanying the letter, the organizers noted that if Republicans held back support ― which they did last year ― only 19 Democrats would need to vote “no” this year for the bill to fail. Last year, House Republicans resisted an early version of the 2020 bill written by House Democrats, but even after many of their priorities were stripped out in negotiations with the Republican-controlled Senate, the compromise bill still passed the House without them, 377-48. House Speaker Nancy Pelosi found common ground with the White House on an eleventh hour paid parental leave provision that attracted most Democrats. This year, House Armed Services Committee Chairman Adam Smith, D-Wash., has spoken in favor of working to protect the defense-industrial base through stimulus funding. But with a stimulus bill caught in a partisan deadlock, it's unclear whether lawmakers will see the NDAA as a potential vehicle for defense industry aid. If so, that could be a sticking point. Last month, Smith told reporters that public health needs were more pressing and that within the Pentagon's existing $738 billion budget, defense officials "have a lot of money and ought to spend that money to meet those needs” before Congress considers more. HASC ranking member Mac Thornberry, who led early Republican opposition to last year's bill, has said he is hopeful this year's bill will be more bipartisan. Thornberry, R-Texas, also opposed the idea of cutting defense to fund health care needs. “I bristle a bit at the notion, ‘well, of course [the Department of Defense has] got to get their budget cut,' " he said, “because the world's not going to be safer on the other side of COVID.” https://www.defensenews.com/congress/2020/05/19/house-progressives-demand-pentagon-cuts-citing-pandemic/

NAVY General Dynamics Ordnance and Tactical Systems, Williston, Vermont, is awarded a $58,590,570 firm-fixed-price modification to previously-awarded contract N00024-20-D-5109 to exercise Option Year One for the production and shipping of Mk 82 guided-missile directors and Mk 200 director control units. Work will be performed in Williston, Vermont (50%); and Saco, Maine (50%). The Mk 82 director serves to position the fire control system antenna to a commanded and stabilized position in space for the purpose of illuminating the target. The director has two axes of motion and has slip rings and a dual radio frequency rotary joint to allow unlimited rotation in train. The Mk 200 director control houses the elevation and train servo-amplifiers for its associated director. Within the director control, solid-state servo-amplifiers provide the servo drive signals that position the director to the desired target position. These components are part of the Mk 99 missile fire control system framework, which is a critical component of the Aegis Weapon System. Work is expected to be complete by December 2025. Fiscal 2020 shipbuilding and conversion (Navy); and Foreign Military Sales funding in the amount of $58,590,570 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. A-VET/MGC JV LLC,* Warner Robins, Georgia (N69450-20-D-0028); CYE Enterprises Inc.,* Jacksonville, Florida (N69450-20-D-0029); and Pacific Tech Construction Inc., Kelso, Washington (N69450-20-D-0030), are awarded $30,000,000 for a design-build and design-bid-build, indefinite-delivery/indefinite-quantity, multiple award roofing construction contract for projects located primarily within the Florida Panhandle area of responsibility managed by the Naval Facilities Engineering Command Southeast. Work will be performed in Pensacola, Florida (34%); Whiting Field, Florida (33%); and Panama City, Florida (33%), and primarily consists of roof system replacements, repairs and maintenance of various types of existing low-slope and steep slope roofing. This includes but not be limited to: modified bitumen; built-up; metal roofing; waterproof roof coatings; asphalt shingles; roof systems flashings and drainage components; and abatement and handling of hazardous/regulated materials (including and not limited to asbestos, lead paint, mold remediation and polychlorinated biphenyl). Single ply roof systems, slate roofing systems and tile roof systems may be included. Projects can be based on design-build, modified design-build or full plans and specifications format. Work is expected to be complete by January 2021. The maximum dollar value for the five-year ordering period for all three contracts combined is $30,000,000. A-VET/MGC JV LLC* is awarded the initial task order at $194,733 for Building 3748 roof replacement located at Corry Station, Pensacola, Florida. The term of the contract is not to exceed 60 months, with an expected completion date of April 2025. Fiscal 2020 operations and maintenance (Navy) (O&M, N) contract funds in the amount of $196,733 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by O&M, N. This contract was competitively procured via the Federal Business Opportunities website, and nine proposals were received. These three contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command Southeast, Jacksonville, Florida, is the contracting activity. Detyens Shipyards Inc., Charleston, South Carolina, is awarded a $24,235,291 firm-fixed-price contract (N32205-20-C-4003) for a 120-calendar day shipyard availability for the regular overhaul dry-docking of the U.S. Navy Ship Patuxent (T-AO 201). The $24,235,291 consists of the amounts listed in the following areas: Category "A" work item cost, additional government requirement, other direct costs and the general and administrative costs. Work will be performed in North Charleston, South Carolina. Work will include main and emergency switchboard cleaning, lifeboat and rescue boat davit maintenance and testing, 6,000 hour overhaul of port and starboard main engine exhaust valves, port and starboard main engine fuel injection pumps, annual firefighting inspection and certification, inspection and overhaul of shaft brakes, ship's service diesel generator #3 overhaul, prep and paint saltwater ballast tanks 10 port and starboard, prep and paint fore peak tank, prep and paint diesel fuel marine cargo tank 7 port, prep and paint jet propellant 5 contaminated tank, prep and paint diesel fuel marine contaminated tank, tank deck non-skid renewal frames 40-50, miscellaneous steel repairs, shower panel and flooring renewals, control reversible pitch propeller system and propeller blade seal maintenance, stern tube seal maintenance, underwater hull cleaning and recoating, freeboard blast and preservation, tail shaft removal and survey, carpet, tile and terrazzo replacement, bi-annual gauge calibration, blast and paint 02 level lifeboats, pump room bilge preservation, starboard capstan overhaul, reefer plant groom, tank deck sprinkler system flush, inspection and painting of diesel fuel marine piping, sea valve and waster piece overhaul, davit modifications and installation of new lifeboats, various pump overhauls, underway replenishment station permanent repairs stations 3 and 4, various steel deck renewals, miscellaneous pipe repair, underway replenishment gear maintenance, stability test, kingpost repairs (partial) trans-alternation, trash chute removal trans-alternation, Gaylord booster heater replacement trans-alternation and fire detection and alarm system replacement trans-alternation. Work is expected to be complete by October 2020. The contract includes options which, if exercised, would bring the total contract value to $27,416,444. Funds will be obligated on May 20, 2020. Contract completion will be Oct. 26, 2020. Contract funds in the amount of $24,235,291, excluding options, are obligated for fiscal 2020 using Navy working capital funds. This contract was competitively procured, with proposals solicited via the beta.sam.gov website and two offers were received. The Military Sealift Command, Norfolk, Virginia, is the contracting activity (N32205-20-C-4003). Vet Industrial Inc.,* Bremerton, Washington, is awarded $17,305,016 for a firm-fixed-price task order (N44255-20-F-4204) under a multiple award construction contract for seismic upgrades to Building 431 at Puget Sound Naval Shipyard, Bremerton, Washington. Work will be performed in Bremerton, Washington. The work to be performed provides all labor, materials and equipment to construct seismic upgrades to Building 431, and also includes the installation of a fire suppression system throughout Building 431. Work is expected to be complete by August 2021. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $17,305,016 are obligated on this award and will expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command Northwest, Silverdale, Washington, is the contracting activity (N44255-17-D-4007). The Boeing Co., Huntington Beach, California, is awarded a $13,211,471 cost-plus-fixed-fee and cost-only modification to previously awarded contract N00024-18-C-4103, to exercise options in support of the AN/USQ-82(V) program for DDG-51 class new construction, DDG-51 class modernization, operations and maintenance, research and development and Foreign Military Sales (FMS). This contract combines purchases for the Navy (91%); the government of Japan (5%); the government of the Republic of Korea (3%); and the government of Australia (1%), under the FMS program. Work will be performed in Huntington Beach, California. AN/USQ-82(V) program is a control system network. Its purpose is to transfer mission critical data to and from users associated with combat, navigation, aviation, power, propulsion, steering, damage control systems and alarms and indicating. Work is expected to be complete by May 2021. Fiscal 2019 and 2020 other procurement (Navy) funding; 2013-2019 shipbuilding and conversion (Navy) funding; 2020 operations and maintenance (Navy) funding; 2020 research, development, test and evaluation (Navy) funding; and FMS funding in the amount of $13,211,471 will be obligated at the time of award. Funds in the amount of $400,000 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Raytheon Co., Keyport, Washington, is awarded a $10,480,184 modification to previously awarded indefinite-delivery/indefinite-quantity requirements contract N61331-17-D-0001 to exercise options for maintenance and support for the AN/AQS-20 Sonar Mine Detecting Set. The AN/AQS-20 is a towed, mine hunting and identification system for program executive office, unmanned and small combatants. Work will be performed in Portsmouth, Rhode Island (65%); Keyport, Washington (30%); and Panama City, Florida (5%). This option exercise extends the period of performance and allows for continuing support including but not limited to: repair; overhauls and other scheduled maintenance; hardware and software maintenance; tracking and resolution of obsolescence issues; technology improvements; reliability and maintainability improvements; development and incorporation of change notices and engineering change proposals; test support; engineering services; spares and repair parts; design efforts and hardware upgrades to improve system performance, sustainability, reliability, and other activities in support of the program. Work is expected to be complete by May 2021. No funding will be obligated at the time of award. The Naval Surface Warfare Center, Panama City Division, Panama City, Florida, is the contracting activity. Austal USA, Mobile, Alabama, is awarded an $8,229,522 cost-plus-fixed-fee modification to previously-awarded contract N00024-11-C-2301 for Littoral Combat Ship (LCS) industrial post-delivery support for LCS 26. Work will be performed in Mobile, Alabama (80%); and Pittsfield, Massachusetts (20%). Austal USA will provide shipboard support to implement approved engineering change proposals, approved government-responsible deficiencies identified during test and trials, crew-related activities and preventative maintenance. Austal will also provide program management support and logistics support for technical documentation affected by the work performed. Work is expected to be complete by March 2021. Fiscal 2016 shipbuilding and conversion (Navy) funding in the amount of $3,970,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. ARMY B.L. Harbert International LLC, Birmingham, Alabama, was awarded a $37,142,044 firm-fixed-price contract for construction of a general purpose maintenance shop. Bids were solicited via the internet with seven received. Work will be performed in Clarksville, Tennessee, with an estimated completion date of July 29, 2022. Fiscal 2020 military construction (Army) funds in the amount of $37,142,044 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-20-C-0022). Benaka,* New Brunswick, New Jersey, was awarded a $15,883,000 firm-fixed-price contract to construct a security forces and communications flight facility. Bids were solicited via the internet with six received. Work will be performed in Westhampton Beach, New York, with an estimated completion date of Nov. 30, 2021. Fiscal 2020 military construction (Army) National Guard funds in the amount of $15,883,000 were obligated at the time of the award. U.S. Property and Fiscal Office, New York, is the contracting activity (W50S8E-20-C-0001). Raptor Training Services LLC,* Oviedo, Florida, was awarded a $13,500,000 modification (P00012) to contract W900KK-14-D-0001 to accommodate known and emerging critical Special Operations Forces requirements. Bids were solicited via the internet with 16 received. Work locations and funding will be determined with each order, with an estimated completion date of Nov. 11, 2021. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity. Systems Products and Solutions Inc., Huntsville, Alabama, was awarded a $13,475,295 modification (000103) to blanket purchase agreement W31P4Q-18-A-0094 for logistical support services for U.S. Army Material Command. Work will be performed in Huntsville, Alabama, with an estimated completion date of May 20, 2021. Fiscal 2020 Army working capital and operations and maintenance (Army) funds in the amount of $13,475,295 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. B&K Construction,* Mandeville, Louisiana, was awarded a $7,941,412 modification (P00001) to contract W912P8-19-C-0071 for drainage canal work. Work will be performed in New Orleans, Louisiana, with an estimated completion date of Dec. 13, 2022. Fiscal 2020 civil operations and maintenance funds in the amount of $7,941,412 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity. (Awarded May 18, 2020) U.S. TRANSPORTATION COMMAND Vane Line Bunkering Inc., Baltimore, Maryland, has been awarded a firm fixed-price contract, HTC711-20-C-W003, in the estimated amount of $26,662,956. The contract provides transportation of bulk jet fuel and marine diesel by tug and barge for the Defense Logistics Agency-Energy in the Atlantic and Gulf Coast regions. The location of performance is ports and points along the coast as well as inland and coastal waterways from Texas to Maine. It includes support to Guantanamo Bay, Cuba. The Air Force and Navy use this fuel for cargo and passenger aircraft delivering supplies to the warfighters conducting overseas contingency operations as well as routine operations. Further, the fuel supports aircrew training, crisis action response for natural disasters and threats to the homeland, and ultimately readiness which directly correlates to the nation's warfighting capabilities. Additionally, fuel provided under this contract supports the Presidential Airlift Group at Joint Base Andrews, Maryland. The contract base period of performance is from Sept. 1, 2020, to Aug. 31, 2021. Fiscal 2020 defense working capital funds were obligated at award. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. DEFENSE LOGISTICS AGENCY Fresh Pack Produce,* Denver, Colorado, has been awarded a maximum $12,600,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for produce. This was a competitive acquisition with two responses received. This is a four-year, six-month contract with no option periods. Locations of performance are Colorado and Wyoming, with a Nov. 19, 2024, performance completion date. Using customers are Army, Air Force and Air National Guard. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-P354). Propper International Inc., Cabo Rojo, Puerto Rico, has been awarded a maximum $11,965,427 modification (P00007) exercising the first one-year option period of a one-year base contract (SPE1C1-19-D-1168) with two one-year option periods for hydration system and corpsman assault packs. This is a firm-fixed price, indefinite-quantity contract. Location of performance is Puerto Rico, with a May 31, 2021, performance completion date. Using military service is 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 (SPE1C1-19-D-1168). Rocky Brands Inc., Nelsonville, Ohio, has been awarded a maximum $9,075,661 modification (P00003) exercising the first one-year option period of a one-year base contract (SPE1C1-19-D-1150) with two one-year option periods for certified safety boots. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are Ohio and Puerto Rico, with a May 20, 2021, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. Creighton AB Inc.,* Reidsville, North Carolina, has been awarded a maximum $8,256,325 modification (P00007) exercising the first one-year option period of a one-year base contract (SPE1C1-20-D-1211) with four one-year option periods for dress trousers. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are New York and North Carolina, with a May 22, 2021, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. AIR FORCE Dataminr Inc., New York, New York, has been awarded a $12,180,000 firm-fixed-price contract to provide web-based, mobile and email alerting of events and breaking news based on global sources of publically available information (PAI) to all Department of Defense (DOD) authorized users for force protection and first response via a commercially-available subscription license with 24/7/365 access to alerting for DOD authorized users and maintain compliance with the terms of service and data use policies of all third party PAI data sources that are used to create news alerts. Work will be performed in New York, New York, and is expected to be completed Aug. 18, 2020. Fiscal 2020 operations and maintenance funds in the amount of $4,000,000 will be obligated at the time of award. Air Force District of Washington, Joint Base Andrews, Maryland, is the contracting activity (FA7014-20-C-0022). Rockwell Collins Inc., Cedar Rapids, Iowa, has been awarded an $11,916,073 firm-fixed-price and cost-reimbursable modification (P00101) to exercise the contractor logistics support (CLS) and contractor logistics support performance based incentive options previously awarded on contract FA8678-10-C-0058 to support the sustainment of the Common Range Integrated Instrumentation System (CRIIS) for upgrading the test and evaluation instrumentation at Air Force, Navy and Army test ranges. The objective of the CRIIS CLS is to provide repairs and sustainment management for the CRIIS equipment while verifying sustainment system performance specification requirements. CLS will ensure availability and maintainability of CRIIS equipment at Eglin Air Force Base, Florida; Edwards AFB, California; Naval Air Station, Patuxent River, Maryland; White Sands Missile Range, New Mexico; Nevada Test and Training Range, Nevada; Naval Air Weapons Station, China Lake, California; and Naval Air Station, Point Mugu, California. The contracting action is the result of a competitive acquisition and two offers were received. Work will be performed at Rockwell Collins facilities; Cedar Rapids, Iowa; and Richardson, Texas, and is expected to be completed by May 31, 2025. Fiscal 2020 and 2021 Department of Defense Central Test and Evaluation Investment Program research, development, test, and evaluation funds in the amount of $1,279,875 are being obligated at the time of award. Total cumulative face value of the contract is $340,594,567. Air Force Life Cycle Management Center, Eglin AFB, Florida, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2193451/source/GovDelivery/

“I've heard some people talk about [going] back to a BCA [Budget Control Act] level of funding,” Gen. Murray says, referring to the steep cuts also known as sequestration. “And I've heard some people say that it's even going to be worse than BCA.” By SYDNEY J. FREEDBERG JR.on May 20, 2020 at 1:11 PM WASHINGTON: Over the last two years, the Army has cut or cancelled more than 240 programs to free billions for its 34 top priorities, from hypersonic missiles to new rifles. Some of those 34 may have to die as the economy and budget reel from the COVID-19 pandemic, . “I start off with what Secretary Esper and Secretary McCarthy have said consistently, across DoD: three to five real growth is what we need,” said Gen. Mike Murray, chief of Army Futures Command. “Given what's going on in this country over the last two or three months.... my personal expectation is we're not going to see three to five percent growth. We'll be lucky to see a flat line.” LRPF: Long-Range Precision Fires. NGCV: Next-Generation Combat Vehicle. FVL: Future Vertical Lift. AMD: Air & Missile Defense. SL: Soldier Lethality. SOURCE: US Army. (Click to expand) While the Army is still working on its long-term spending plan for 2022-2026, the future topline is very much in doubt. “I've heard some people talk about [going] back to a BCA [Budget Control Act] level of funding,” Murray told an online AOC conference yesterday, referring to the steep cuts also known as sequestration. “And I've heard some people say that it's even going to be worse than BCA.” “I do think budgets are going to get tighter,” Murray said. “I do think that decisions are going to get harder.” Across its actual and projected budgets for 2020 through 2025, despite a slight drop in its topline, the Army has moved $40 billion from lower-priority programs to the 34 “signature programs.” Murray's Futures Command runs 31 of the 34, grouped in six portfolios: long-range rocket and cannon artillery is No. 1, followed by new armored vehicles, Future Vertical Lift aircraft, an upgraded battlefield network, air & missile defense, and soldier gear. Meanwhile, three most technologically demanding programs – including hypersonics and high-energy lasers – are handled by the independent Rapid Capabilities & Critical Technology Office. “We're prioritizing what I call the 31 plus 3,” Murray said. “We have fully funded those priorities in the program at the expense of a lot of other things.” The XM1299 Extended Range Cannon Artillery (ERCA) howitzer in an earlier test shot last year. But Army leaders have already warned that the Big Six will need more funding as they move from concept to prototype to mass production. Even a flat budget topline will be tight — and COVID makes flat the best-scare scenario. When and if the budget shrinks, Murray warned, “I do think we're going to have to make some tough decisions.” Hypothetically, he said, the choice may come down to something like, “Is it 31 plus three, or is it 24 plus two?” Considering the agonies the Army went through in its multiple rounds of “night court” cuts to find money for the 34 priority programs in the first place, cancelling any of them will be painful – but not impossible. Yes, the Army needs capabilities from each of its six modernization portfolios to work together in what's called Multi-Domain Operations against a future foe like Russia or China. Long-range precision firepower blasts holes in enemy defenses for aircraft, armor and infantry to advance; then they hunt out enemies too well-entrenched or mobile for artillery to destroy. Meanwhile air and missile defense protects the entire force, and the network passes intelligence and targeting data. But each of the Big Six includes multiple programs, and the Army has never expected all 34 to succeed. That's a crucial difference from the service's last major modernization drive, the Future Combat Systems cancelled in 2009, which depended on each of its 20 component technologies working as planned. Army slide showing the elements of the (later canceled) Future Combat System “Is there room for failures? Yes,” Murray told reporters at an Association of the US Army conference last year. “This concept does not count on any specific piece of capability.” That doesn't make cuts painless or easy, however. “Our priorities are our priorities for a reason,” Murray said yesterday. The Army's current weapons, from missiles to tanks to helicopters, largely entered service in the Reagan era. They've been much upgraded since, but there's only so much add-on armor, souped-up horsepower, and advanced electronics a 40-year chassis can take. The Army says it needs new weapons to take it into the next 40 years. “The kids running around on armored vehicles today are riding... fundamentally the same vehicles I rode around in as a company commander, way back when,” Murray said. “My now five-year-old granddaughter [lives] up the road at Fort Hood, Texas... I've got eight grandchildren, and out of all of them, I have absolutely no doubt that she is my infantry company commander wearing an Airborne Ranger tab at some point in the future. So that makes it personal for me.” https://breakingdefense.com/2020/05/army-braces-for-post-covid-cuts-gen-murray

Michael Bruno May 20, 2020 If you like the cadre of big aerospace and defense companies now, you are going to love them later. Among the major trends the novel coronavirus is expected to catalyze within aerospace and defense (A&D) manufacturing is that the big will get bigger by gobbling up others or taking back more work. In the next few years, vertical integration should pick up momentum, according to several executives and consultants. After decades of OEMs, primes and top-tier companies outsourcing major work on their programs, many see the pendulum swinging back to bringing more of it in-house. “We've already seen signs of more vertical integration coming through the industry and potentially where some of that could be accelerated as we work through the crisis,” says one advisor. Boeing started this a few years ago as it insourced avionics and other niche segments. Major consolidation picked up last year with the mergers of Raytheon and United Technologies Corp. and L3 Technologies and Harris Corp. Now, whether it be protecting profits or securing supply, the reasons to own more of the work are burgeoning as industry is refashioned in the COVID-19 crisis. For starters, aerospace suppliers are facing diminished economies of scale but a greater share of fixed-cost in production, with a likely loss in profitability and competitiveness, say Roland Berger advisors Robert Thomson and Manfred Hader. So-called organic top-line increases, through insourcing and acquisition of additional work packages, are possible but only to a limited degree. A fixed-cost reduction likewise is only feasible up to a certain level due to equipment and overhead structures. So consolidation is an important lever to consider. Part and parcel to that will be the financial distress into which suppliers in Tier 2 and below fall—and the opportunity to roll them up. Top CEOs are watching. Speaking May 13 to an investor conference, Honeywell International Chairman, CEO and President Darius Adamczyk cited an inflection point. “For a couple of years now, I've been talking about how it is a seller's market, not a buyer's market,” he told Goldman Sachs. “But that calculus may change in the second half of the year, and I think it could become a bit more of a buyer's market, and the valuations may be better and different. That's something that we want to partake in.” Feeding the phenomenon could be a desire to bring supply closer to home, both for reliability and geopolitical reasons. Suppliers overseas once were revered for their low-cost footprint, but suddenly they are seen as vulnerable to pandemics, economic stress and global trade wars. In turn, consultants expect industry leaders to take another look at favoring local regions. Even in the defense realm, which for now is considered safer during this downturn, there is talk of larger firms becoming even more powerful. “Large pure-plays should come through the pandemic relatively unscathed but may be looking at lower spending growth outlooks,” Capital Alpha Partners Managing Director Byron Callan noted May 13. “Mergers and acquisitions may thus be more important in delivering growth—even though it's not organic growth—in 2021-25.” So where to look for vertical integration and consolidation from the top? Clues are already emerging, according to advisor presentations. First, look at niches where top suppliers already are prevalent—environmental and flight-control systems, landing gear, electrical power and interiors—and others where they are not there yet, including maintenance, repair and overhaul, logistics, aerostructures and engines. Next, look at the supply base from the perspective of a top supplier. Who is distressed or drawing down credit lines? What revenue mix do certain potential targets have—e.g., commercial vs. defense, products vs. services or aging vs. next-generation platforms? Finally, consider where the new nucleus of consolidation will be. Will more “super Tier 1s” such as Raytheon Technologies emerge, or will conglomeration occur among Tier 2 and 3 providers? The first would allow rationalization of capacity for detailed part production from Tier 1 to 3, for instance, with the super Tier 1s able to secure through-value-chain control and prevent subtier supplier failure, according to Roland Berger. The latter likely would be opportunistically driven rather than following any overarching industry logic. For smaller suppliers, the questions are more concise, as one consultant says. Do you want to be a buyer, a seller or risk it as is? A simpler question, for sure, but no less difficult to answer. https://aviationweek.com/aerospace/manufacturing-supply-chain/manufacturing-reshapes-after-covid-19-size-will-matter

Opponents of defense spending may cite the economic consequences of COVID-19 — huge deficits and ballooning national debt— in an effort to slash the Department of Defense's budget. If they succeed, American military supremacy will erode further, inviting aggression from adversaries and decisively undermining American security. By BRADLEY BOWMANon May 20, 2020 at 4:01 AM Even as many Americans huddle in their homes to avoid the coronavirus, our adversaries have continued to use military power to test and undermine the United States. Since the crisis began, Moscow has sent bombers to probe American air defenses near Alaska. China escalated its belligerent activity in the South China Sea. Iran has harassed U.S. naval vessels in international waters. North Korea launched a barrage of missiles. Hackers have pummeled defense networks and suppliers with cyberattacks. All the while, terrorists have continued attacking U.S. and partner forces in Iraq and Afghanistan. Authoritarians and terrorists apparently did not get the memo that they were supposed to play nice during the pandemic. They clearly still believe they can advance their interests and undermine ours with the employment of cyber and kinetic military power. Despite this, opponents of defense spending may cite the economic consequences of COVID-19 — huge deficits and ballooning national debt— in an effort to slash the Department of Defense's budget. If they succeed, American military supremacy will erode further, inviting aggression from adversaries and decisively undermining American security. To be clear, the United States did not find itself in this tenuous position overnight. America's military edge has been eroding for years. For many years after 9/11, Washington repeatedly failed to provide the Pentagon with the timely, predictable and sufficient funding necessary to maintain current readiness and modernize its forces. When confronted with this difficult choice, defense leaders were often forced to postpone vital weapon modernization research and development programs to resource and support the next units to deploy. Meanwhile, Beijing and Moscow studied how the United States fights wars and undertook comprehensive efforts to modernize their weapons and revamp their operational concepts. So, by 2018, the military balance of power had shifted so significantly that the National Defense Strategy (NDS) Commission — a group of bipartisan national security experts not prone to hyperbole — sounded the alarm. “The security and wellbeing of the United States are at greater risk than at any time in decades,” they warned. “America's military superiority—the hard-power backbone of its global influence and national security—has eroded to a dangerous degree.” Thankfully, the U.S. has now emerged from what the 2018 National Defense Strategy called a “period of strategic atrophy” and taken concerted action. With increased defense funding in the last few years and a focus on great power competition, the Department of Defense is undertaking the most significant U.S. military modernization effort in decades. In order to win the intense military technology competition with Beijing and others, the Pentagon is focusing its research and development on artificial intelligence, biotechnology, autonomy, cyber, directed energy, hypersonics, space and 5G. Simultaneously, the Pentagon and combatant commands are working to develop a new joint concept to employ these new weapons. Despite these positive efforts, U.S. military supremacy has continued to erode. Consider Indo-Pacific Command's report submitted in March warning that the military balance of power with China continues to become “more unfavorable.” The United States, it said, is accumulating “additional risk that may embolden our adversaries to attempt to unilaterally change the status quo before the U.S. could muster an effective response.” This is because America has not yet deployed most of the weapons and capabilities it has been developing and is still crafting its new joint warfighting concept. To be sure, each of the U.S. military services are sprinting to field key systems, weapons, and capabilities in the next few years. But the Chinese Communist Party and its People's Liberation Army are sprinting too, and there is no time to waste. The bipartisan experts on the NDS Commission recommended that “Congress increase the base defense budget at an average rate of three to five percent above inflation” in the coming years. If Congress ignores its own commission and slashes defense spending, U.S. military supremacy will continue to erode and could eventually disappear. The far left and libertarians often respond to such arguments by emphasizing the size of the U.S. defense budget. What they fail to mention is that U.S. defense spending, measured either as a percentage of gross domestic product or a percentage of federal outlays, is near post-World War II lows. That doesn't mean assertive congressional oversight is not needed; there is certainly room for improvement at the Pentagon. Indeed, defense leaders must continue to ruthlessly establish priorities, eliminate waste, and implement efficiencies—while credibly demonstrating tangible stewardship to Congress and taxpayers. One should not dismiss the severe economic impacts of the coronavirus. The Congressional Budget Office has highlighted the potentially dire consequences for the federal deficit and debt. But Medicare, Medicaid, and Social Security's mandatory spending — not discretionary defense spending — is the primary driver, by far, of fiscal unsustainability. If the American people and their representatives in Congress provide the Department of Defense sufficient resources over the next few years, the U.S. military will be able to complete and field vital modernization programs. This will ensure U.S. troops have what they need and will enable the United States to re-assert the military superiority that has been so beneficial to peace, prosperity, and security. The coronavirus has certainly demonstrated the need for better domestic health security programs and has delivered a body blow to the U.S. economy. But if political leaders respond by slashing the Department of Defense's budget, Washington risks making American military superiority yet another casualty of the coronavirus. Bradley Bowman, former advisor to Sens. Todd Young and Kelly Ayotte, is senior director of the Center on Military and Political Power at the Foundation for Defense of Democracies. https://breakingdefense.com/2020/05/dont-let-the-covid-deficit-hurt-defense-spending