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All major military acquisition programs are still stuck in a slowdown due to the impacts of the pandemic, according to the Pentagon’s chief weapons buyer.
Ship-building and aviation supply chains have been worst affected.
“I continue to use the words ‘slowdown’ and ‘impact,’ and did not say the word ‘delay,’ which carries a very different connotation,”聽Undersecretary of Defense for Acquisition and Sustainment Ellen Lord told reporters on June 22.
Lord refused to discuss specific programs but confirmed that there had been “inefficiencies across most programs,” with the pandemic shutting down manufacturing facilities and production lines, disrupting supply chains, and distressing the financial stability of the companies.
“We’re getting back up to speed,” said Lord. “We don’t know what that new normal will be on speed, but we see an enormous amount of recovery, and we think there’s roughly a three-month impact, but we will continue to monitor.”
Lord indicated that the three month period she was talking about was April, May, and June, adding, “We see an enormous amount of recovery in the defense industrial base.”
Her remarks echo predictions made in April, when the Trump administration had already taken various steps to shore up the industrial base.
Before widespread lockdowns were introduced, the Pentagon earmarked workers in the defense industry as critical infrastructure workers.
The department has also increased ongoing payments given to contractors for work already completed. The rate of what are known聽as progress payments for large contractors rose to 90 percent from 80 percent, and to 95 percent for small contractors from 90 percent.
“As of this week, we have processed over $2 billion in invoices at the higher progress payment rate,” said Lord. “We have spoken with each of our major prime companies, and they have confirmed their detailed plans to work with their supply chains to accelerate payments to identify distressed companies and small businesses.”
An F-35 demonstration flight at the Wings Over Houston Airshow in Texas on Oct. 20, 2019. (U.S. Air Force photo by Senior Airman James Kennedy)According to Lord, of the 11,000-plus companies that the DoD tracks in the defense industrial base (including logistics) just 33 are still closed, with over 800 having closed and opened.
“Domestically, we have seen some minor improvements,” said Lord. “We continue to see the greatest impacts both domestically and internationally in the aviation and shipbuilding supply chains. Our acquisition and sustainment team remains focused on partnering with industry to maintain readiness and drive modernization.”
Lord said that the impacts of the “dynamic situation” will not be completely known for a while. “I stress that we expect our defense industrial base to follow CDC guidelines,” she said.
Like other sectors of society, the Pentagon has had to make other adjustments to cope with the pandemic, including canceling some joint exercises, limiting overseas troop movements, and adjusting some training requirements.
However, military leaders insist that their combat readiness is little affected and have warned adversaries not to see the pandemic as an opportunity to test U.S. military strength or resolve.
A U.S. Air Force B-1B Lancer from Ellsworth Air Force Base, S.D. and F-16 Fighting Falcons from Misawa Air Base, Japan, conducted bilateral joint training with Japan Air Self-Defense Force F-2s and F-15s off the coast of northern Japan on April 22, 2020. (Japan Air-Self Defense Force)Some analysts have suggested that a flurry of recent U.S. long-range bomber expeditions, along with naval exercises in the Pacific and Arctic were, in part, about demonstrating that the U.S. military was in rude health, despite the pandemic.
Focus News: Slowdown in Defense Industry Continues, Says Chief Pentagon Weapons Buyer