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Aerospace & Defense News Alert - Defense North America.

New York (AirGuideBusiness - Aerospace & Defense News - Defense North America) Oct 20, 2013

Defense cuts could be coming, suggest Levin, McCain Even if sequestration is rolled back somewhat, defense cuts may be likely, two Senate leaders suggested this week. Senate Armed Services Committee Chairman Carl Levin, D-Mich., and committee member Sen. John McCain, R-Ariz., both suggested it may be impossible to avoid cutting defense spending. The discussion comes as a bicameral panel made up of both chambers' Budget Committee members gets to work on recommendations for the budget. The panel was created as part of the fiscal deal passed this week. Oct 18, 2013

DoD's Jeh Johnson to be nominated for Homeland Security post Jeh Johnson, former general counsel for the Pentagon and one of the architects of President Barack Obama's counterterrorism policies, will be nominated by Obama to lead the Department of Homeland Security. Janet Napolitano, the former secretary of the agency, left more than a month ago to lead the University of California system. Oct 18, 2013

Pentagon lost $600M in productivity, thanks to shutdown, Hale says The drawn-out government shutdown came with a $600 million price tag for the Department of Defense, according to Comptroller Robert Hale. OWe built up interest payments because we were forced to pay vendors late. We had to cancel training classes, so we had to bring the people home on orders and then send them right back again. So there were a lot of costs of those sort. I can't quantify those, but it's at least the $600 million to start with in essentially lost productivity,O Hale said Thursday. Oct 18, 2013

Sequester toll on defense could double in 2014 Sequestration already is taking a toll on the economy, but next year, the effects on the defense industry alone could double, according a report by the Bipartisan Policy Center. "The full brunt of the cuts hasn't hit, and if we go down the sequester path for too long, we won't be able to reverse the devastating impacts," the report said. The report echoes one released this week by the Aerospace Industries Association, which predicts sequestration will mean thousands of layoffs at defense firms. Oct 18, 2013

Amid Iran talks, U.S. to sell $10.8B in arms to Saudi Arabia, U.A.E. Cruise missiles and other weapons made by Boeing and Raytheon would be part of a $10.8 billion package of weapons the U.S. want to sell to the United Arab Emirates and Saudi Arabia, a move that comes as the U.S. and its allies pressure Iran into giving up nuclear ambitions. The Pentagon announced the planned sale and now Congress will review the request. Oct 16, 2013

Morpho Detection Awarded $10M Contract for Next-Generation Checked Baggage EDS Development Morpho (Safran), through its subsidiary Morpho Detection, Inc., today announced it has received a contract valued at approximately $10 million from the U.S. Department of Homeland Security (DHS) Science and Technology Directorate (S&T) for the development of a next-generation checked baggage explosives detection system (EDS). Morpho first began working on the project in 2011, and has to date received approximately $7 million in incremental funding from the contract. Under terms of the contract, Morpho will deliver a prototype EDS based on advanced X-ray diffraction (XRD) technology in 2015. By utilizing advanced XRD technology to detect liquid and homemade explosives and IEDs in checked baggage, Morpho's next-generation EDS will give airports the detection and operational capabilities needed to meet emerging threats while accommodating anticipated growth. Oct 16, 2013

No DOD flexibility in sequester House Armed Services Committee Chairman Buck McKeon, R-Calif., doesn't want Pentagon leaders to have the freedom to pick what to cut under sequestration, a stance that separates him from colleagues, including Senate Armed Services Committee Ranking Member James Inhofe, R-Okla. McKeon, said his spokesman, "is concerned that contrary to a bipartisan desire to end the defense sequester, flexibility actually makes sequester a likely long-term proposition. He is opposed to any flexibility package at this time." Oct 16, 2013

Program pushes open source software for defense work A new initiative is trying to convince the defense industry that open source software will help companies produce better weaponry and technology but won't eat into their profits. The Center for a New American Security's new Technology and Security program is pushing open source software as a way for defense firms to sell more overseas and pave the way for easier upgrades when selling to the Pentagon. "Open source doesn't mean free, open source means better [ETH]- and it actually might mean more expensive, it might actually be more money," said CNAS adjunct Peter Levin. Oct 16, 2013

Reid hints bill could let DOD pick and choose on cuts Senate Majority Leader Harry Reid, D-Nev., is working on an emergency debt ceiling bill that also may give Pentagon officials some flexibility in deciding what to cut under sequestration. While details of the bill are not yet available, Reid expressed dismay at the House version, which wouldn't address sequester flexibility. "This [House] bill would give no flexibility to the president or the chairman of the Joint Chiefs of Staff to move money around," Reid said. "I don't know how this country can go farther with this bill. It's awful for our country." Oct 16, 2013

Debt deal will not lessen sequestration cuts A possible deal by Congress and the White House to avoid hitting the U.S. debt ceiling might not help the defense industry. A temporary debt bill would likely not affect sequestration, lawmakers say. "Neither side likes the sequester cuts," said Rep. Tom Cole, R-Okla. "But those are going to stay in place until we come to a larger deal." Oct 15, 2013

U.S. eases export controls in a boost for defense firms The United States is easing export controls on military goods, a move that could boost sales at U.S. defense firms. An official from the State Department said at a recent hearing that the U.S. "defense industry is going to become even more competitive than they are already." Oct 15, 2013 AirGuideBusiness ISSN 1939-666X Copyright [c] 2013 AirGuide Business / Pyramid Media Group. All rights reserved.

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Date:Oct 21, 2013
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