Pentagon officials prepare for a three-month hold-up across several of its big-ticket tasks as a result of the production closures induced by the coronavirus pandemic.
On Monday, Ellen Lord, the Defense Department’s acquisitions chief, informed reporters the effect is hitting both the largest defense contractors and smaller sized vendors.
” We continue to carefully and methodically track the state of the defense commercial base,” she stated.
She stated 106 major business and 427 vendor-based operations needed to close down. Of the larger defense professionals, 68 ultimately resumed while staff members at 147 of the vendors have actually gone back to work.
The slowdown induced by COVID-19 is being acutely felt in the shipbuilding and small space launch industries. “air travel is in fact the most highly affected sector we have right now,” Undersecretary Lord said.
She decreased to recognize any specific defense projects that have been slowed down. However she stated it impacts both domestic and global companies.
” We are seeing impacts on the commercial base by numerous pockets of closure internationally – particularly Mexico – where we have a group of business that are impacting a lot of our significant,” projects, Undersecretary Lord stated.
She has reached out to both Christopher Landau, the U.S. Ambassador to Mexico and Mexican foreign minister Marcelo Ebrard, for assistance getting outsourced defense suppliers reopened.
” These business are especially essential for our U.S. airframe production,” Undersecretary Lord stated.
She said Pentagon officials have fasted to respond to defense industry concerns. The Defense Contracting Management Agency customized 1,500 contracts to help cash-strapped companies file invoices at a greater development payment rate. That need to offer $3 billion in increased cash flow to the defense market, she stated.
” I commend Lockheed Martin and Boeing for both publicly dedicating to ensure this cash flow goes rapidly down the supply chain to small businesses who need it most,” Undersecretary Lord stated. “We are expecting comparable public announcements from other significant” prime specialists.
