Dec 02, 2020 - 2:45pm

December 2 OSD Call Notes


President, Defense and Aerospace Export Council (DAEC)
Vice President, U.S. Chamber of Commerce

OSD A&S

  • Next call is January 6th. 
  • This week, Undersecretary Lord met with the Semiconductor Industry Associations’ Board of Directors to discuss areas of key importance to Defense, including offshore partnerships, onshore micro-electronic supply chains, and the U.S. National Defense view on the future of microelectronics. Also has the acting Secretary of Defense involved in making calls to different businesses on these topics.
  • Industrial Policy made note of a program they are working on. Ongoing work with partners and allies regarding technology and capability gaps. Italy is putting together a list of companies interested in doing business with DIB partners and describing the capabilities they offer.  If anyone is interested leveraging capabilities of our partner nations, they can help. We will be providing this information after the call.

DLA

  • In 2020, they exceeded small business goals for 8th consecutive year.
  • Small business office is hosting free monthly webinars for those interested in doing business with DLA. Next is Dec 9; registration and details will be sent out shortly.
  • A 15-20-minute survey will be launched shortly to distributers and manufactures on communications and over all effectiveness of DLA.
  • DLA Industry Associations Webinar will be hosted with the 11 participating association leaders on Dec 17; it will cover the demand forecast for the coming year and future listings of opportunities. Info will be available after the event on DLA’s website.
  • Warp Speed plans are ongoing.

Small Business

  • Army: For FY20, Army ended with over 30% of total obligations going to small business private contracting worth over $24 billion; they met all of their economic goals this year. As of this morning, in FY21 they project nearly identical figures in terms of percentage; still early but they are projecting 27.7% of obligations going to small business, however they are projecting $100million less in FY 2021.
  • Navy: Exceeded their 2020 goals, they will be ending the year with $17.8 billion going to small businesses serving as primes, which was a record year for the department of Navy. Implores you all to cheer for Navy in the Army Navy game tomorrow.  Apparently their small business supporters have an active social media campaign going so feel free to take sides.
  • Airforce: So far in FY21, they are over 1.5 billion and executing 21% to small business.
  • By the end of August 163,000 small businesses closed, 100,000 of which would not reopen. MA has closed 37% of their small business, NJ has lost 1/3 of theirs, likely forever.  The community impact will be something DOD plans to monitor in 2021. 

 

DCMA

  • 18 operational impacts; 53 companies impacted. Average days to reopen 18.9.

 

DPC

  • 39,000 actions worth $22billion in total.
  • Vaccine allocation distribution (relative only to DOD): DPC is actively in the middle of coordination so they cannot share all the specifics. DPC is linked to the COVID task Force alongside Personnel and Readiness- a memo and vaccine guidance will be published regarding DOD allocation of the vaccine. Critical infrastructure of DIB workforce is included in the DOD allocations. More to follow.
  • With regard to the Section 3610 paid leave authority: If Congress sees fit to extend the Dec 11 date, DOD would be very supportive.

Questions:

  • Is there COVID cost recovery estimate available yet? Not yet, the department is aggregating data now and compiling a communications plan.
  • 3610 paid leave extension: With regard to Secretary Mnuchin’s desire to put the unexecuted 4003 funds into a general fund.  Is OSD or DOD engaged in that? Any chance for those funds to become available to DOD instead of shielding them in a general fund? DOD is not involved in the Treasury’s initiated conversation.
  • Any updates on the Defense Production Act awards? Mostly through the billion dollars provided; there is a little left, there’s a press release coming that will announce 8 more awards this week. $100 Million went to DCS loan activity; but awards without loans, they’re within a few million of being done.

 

About the Author

About the Author

Keith Webster headshot
President, Defense and Aerospace Export Council (DAEC)
Vice President, U.S. Chamber of Commerce

President, Defense and Aerospace Export Council (DAEC), and Vice President, U.S. Chamber of Commerce.