The Defense Department expects a three-month slowdown in equipment procurement because of the spread of the COVID-19 virus, the Pentagon's acquisitions chief said Monday.

Ellen Lord, under secretary of defense for acquisition and sustainment, said the majority of the Defense Department's Major Defense Acquisition Program will be slowed, particularly in the areas of the aviation supply chain, shipbuilding and small space launches.

"We believe there will be a three-month impact that we can see right now, so we're looking at schedule delays and inefficiencies and so forth," Lord said. "That isn't a particular program, that's MDAPs in general, and we are just now looking at key milestones that might be impacted. Particularly, we see a slowdown in the shipyards, to an extent. Aviation is actually the most highly impacted sector we have right now."

Supply chains have been affected by closures of defense contractors. Of 10,509 prime companies, 106 are closed, Lord said. Another 68 companies had closed but have since reopened. Of 11,413 vendor-based companies, 427 are closed, and 147 shut down but have since reopened.

Over 1,500 contracts have been "modified to help companies file invoices at the 'higher progress payment rate,'" she said, commending Boeing and Lockheed Martin for advancing invoices so suppliers can be more quickly paid.

Lord added that she has asked Mexico, where numerous U.S. aerospace companies have manufacturing facilities, to help reopen local factories.

She noted that the Defense Department has used $500 million of the $1 billion authorized under the CARES Act to contract for protective equipment for service members and federal agencies. Some of the 60 decontamination systems ordered, used to sterilize up to 80,000 M95 masks per day, have already been delivered, she said. Three million face masks have been ordered for Defense Department personnel, with 135,000 expected to be delivered by the end of April.

Related Links
The Military Industrial Complex at SpaceWar.com
Learn about the Superpowers of the 21st Century at SpaceWar.com

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

NATO needs to protect strategic industries: Stoltenberg
Brussels (AFP) April 15, 2020
Potential adversaries might try to take advantage of the virus-triggered economic downturn by buying controlling stakes in NATO members' strategic industries, the alliance's chief, Jens Stoltenberg, warned on Wednesday. "The geo-political effects of the pandemic could be significant," he told a videolink news conference following a virtual emergency meeting of NATO's defence ministers focused on the impact of the novel coronavirus. "Some may seek to use the economic downturn as an opening to inv ... read more