COVID-19 News

DoD announces $135M in Defense Production Act Title 3 COVID-19 actions

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The Department of Defense (DoD) on June 10 announced five Defense Production Act Title 3 actions that will help sustain defense-critical workforce capabilities in body armor, aircraft manufacturing, and shipbuilding. These actions will help to retain critical workforce capabilities throughout the disruption caused by COVID-19 and to restore some jobs lost because of the pandemic. The Department remains closely partnered with FEMA and HHS, providing almost $2.9 billion in life-saving medical services, supplies and equipment to service members and federal agencies in the nation's whole-of-government approach to the coronavirus pandemic.

$15 million for Bethel Industries

The Department of Defense has signed a $15 million agreement with Bethel Industries, Inc. to increase critical industrial capacity for specialized laser cutting of laminated nylon fabrics for soldier protective systems during the COVID-19 pandemic.

This investment will expand domestic production capability and capacity by installing state of the art laser cutting technology that will significantly increase the production rate and decrease the cost of manufacturing body armor for the warfighter. Improvements in automation and hardware will drive a continuous cutting process, eliminating up to 50% of the laser downtime, increase capacity up to 50%, and decrease laser cutting process up to 40%. Doubling production capacity will allow for additional surge capacity should the DoD require mobilization.

This agreement will enable Bethel Industries, Inc., located in Jersey City, New Jersey, to retain critical workforce capabilities throughout the disruption caused by COVID-19.

The DPA Title III investment will strengthen a viable, domestic supplier of defense articles while sustaining critical workforce capabilities in the Jersey City, New Jersey area. DoD and Bethel Industries, Inc. anticipate the period of performance for this effort to be 27 months.

$20 million for GE Aviation

As part of the national response to COVID-19, in support of the Propulsion Defense Industrial Base, the Department of Defense entered into a $20 million contract with GE Aviation on June 5 to sustain critical industrial base capability for highly specialized engineering resources during the COVID-19 pandemic.

The purpose of this investment is to sustain defense-critical industrial base capability through the COVID-19 pandemic. GE Aviation is one of two U.S. suppliers capable of producing large advanced combat engines. This agreement will allow GE Aviation will maintain capability and capacity to mature technologies critical to multiple current and future combat applications.

GE Aviation will expand development in advanced manufacturing techniques, including additive manufacturing, promoting advanced material development, and improving digital engineering proficiencies. This will enable GE Aviation to retain critical workforce capabilities throughout the disruption caused by COVID-19 and to sustain engineering positions put at risk by commercial aviation contraction during the pandemic.

Located in Evendale, Ohio, GE Aviation will preserve more than 100 highly skilled and experienced design and mechanical engineers, representing numerous critical engineering skillsets and emerging technology subject matter expertise.

This DPA Title III investment will strengthen a vital, domestic supplier of defense articles while sustaining critical workforce capabilities in the Evendale, Ohio area. DoD and GE Aviation anticipate that it will take 9 months to sustain capability and capacity until the next previously funded effort.

$80 million for Spirit AeroSystems

As part of the national response to COVID-19, to support the health of the Defense Industrial Base, the Department of Defense allocated $80M to Spirit AeroSystems, Inc.

Spirit AeroSystems, headquartered in Wichita, Kansas, will expand its domestic production capability and capacity for advanced tooling, composite fabrication and metallic machining at Spirit and the supporting lower level supply chain. This will enable Spirit AeroSystems to maintain and protect critical workforce capabilities during the disruption caused by COVID-19.

Spirit AeroSystems is a leader in the design, development and manufacture of complex structures for the commercial and defense industries. The company also manufactures high-temperature carbon/carbon materials for the DoD and defense prime contractors.

As a critical supplier of the Defense Industrial Base, it is currently supporting defense programs for the Air Force, Navy, the Army and multiple defense prime contractors. This DPA Title III investment will strengthen a vital domestic supply chain of aircraft articles while maintaining critical workforce skills in the Wichita area.

$19.5 million for Steel America

The Department has signed a $19.5M agreement with Steel America to sustain critical industrial base capability and capacity for U.S. Navy shaft repair and manufacturing during the COVID-19 pandemic.

Using funds authorized and appropriated under the CARES Act, this investment at the Norfolk, Virginia headquarters of Steel America, a division of Colonna’s Shipyard, will expand its domestic production capability and capacity for shaft repair and manufacturing in support of the U.S. Navy and Coast Guard.

Steel America will increase core machine shop peak capacity by 200%, build a “rotatable pool” of spare equipment and help reduce dry-dock times, driving time and facilitate cost savings for the U.S. Government. This will enable Steel America to retain critical workforce capabilities throughout the disruption caused by COVID-19 and to restore some jobs lost because of the pandemic.

The purpose of this investment is to sustain defense-critical industrial base capability through the COVID-19 pandemic. To accomplish this, Steel America will expand its domestic production capability and capacity for U.S. Navy and Coast Guard shaft repair and manufacturing to meet vitally important demand from the Shipbuilding Defense Industrial Base.

This DPA Title III investment will strengthen a vital, domestic supplier of defense articles while sustaining critical workforce capabilities in the Norfolk area. DoD and Steel America anticipate that it will take 3-5 years to accomplish this expansion of capability and capacity.

$500 thousand for Allied Systems

The Department has signed a $500 thousand agreement with Allied Systems to sustain critical industrial base capability for manufacturing and service provisioning for cranes and davits for the U.S. Navy and Coast Guard during the COVID-19 pandemic.

This investment at Allied Systems headquarters in Sherwood, Oregon will address COVID-19 impacts caused by a significant shortfall in CO2 available for welding as well as provide funding to off-set disruptions to operations and company orders. This will enable Allied Systems to retain critical workforce capabilities in the Sherwood, Oregon area throughout the disruption caused by COVID-19 and sustain defense-critical industrial base capability.

DoD and Allied Systems anticipate that it will take 3 months for initial set-up and support 2 years of ongoing operations to sustain this capability and capacity.

Website resources:
DoD Coronavirus update: https://www.defense.gov/Explore/Spotlight/Coronavirus/
DoD Industrial Policy: https://www.businessdefense.gov/coronavirus/
Joint Acquisition Task Force: https://www.acq.osd.mil/jatf.html
Defense Production Act Title 3: https://www.businessdefense.gov/DPA-Title-III/Overview/

Read more: https://www.defense.gov/Newsroom/Releases/Release/Article/2214497/dod-an...