September 2 OUSD Conference Call Notes

OSD A&S:

• Transitioning calls to 1st and 3rd Wednesday of every month (we will adjust our membership invites accordingly).
• DTA Title 3 SY21 Title 1 Department Funding request and likely range of funding: Total request was $181, 931,000 to address Domestic Industrial Base critical shortfalls, as identified in the interagency report the response to Executive Order 13086 and ensured the industrial base can support the Department’s Strategic Modernization Initiative.
• The request would fund Industrial Base efforts to include rare earth, critical chemicals, small unmanned aerial systems, hypersonic applications, and electronics.
• Specified numbers for each effort are subject to change based on ongoing market research and acquisition process.
• The House Appropriates Committee approved the FY2020 Defense Funding Bill back in July. The committee recommended an increase of $10 Million for a total appropriation of $191, 931,000 for DPA to support activities to expand production capacity and supply and to incentivize the domestic industrial base to grow the production supply of critical materials and goods. Any increase will allow the department to make further investments in these critical areas for other industrial base shortfalls as they are identified.
• The Senate Appropriations Committee has not marked up any of its bills, and it appears unlikely that they will do so before the November elections.
• With regard to the NIA (National Interest Action Value) extension, the expiration date is extended to March 31, 2021.

DLA:

• Last Thursday, there was an award for 150 million test kits purchased from Abbott. These are being delivered to the States on behalf of HHS.
• It was a sole-source award based on Emergency use authorization that was issued by FDA last Wednesday.

OSD Small Business:

• Air Force: In 2020 to date, they have obligated to small business $11.2 billion (20.3%). COVID related Air force awards roll up to approximately 600. Total Airforce contract actions, as well as civil actions roll up to 1200 total actions worth $600 million.

DCMA:

• Tracking 489 impacts since the start of COVID.
• Currently there are no DIB facilities closed, no plants are closed either.
• Working on closing out aging impacts; there are 122 total.
• Communications between industry and DCMA is good. They are receiving good notifications and see a good road ahead.
• This was DCMA’s last report on payments.
• As of last week, DCMA had 184 progress payments. These numbers are hovering around pre-COVID activity worth $1.1 billion. Normal rhythm. No more progress payment reports to come.
• If the DIB continues to stay stable, they may not be reporting on any more closures either.

DPC:

• Relative to COVID spending, DPC dipped down a bit. They are just shy of $16 billion total in COVID spending.
• DPC made a request for supplemental DPA funding.

Associations/Chamber:

• Question regarding 3610: There was a class deviation for reimbursement request that was recently issued, does that supersede any previous class deviations or guidance relevant to potential reimbursements for PPE within DIB facilities?
• Are DOD requests in subsequent funding focused on DIB itself rather than all PPE?
• Is there any additional HHS funding for PPE?
• FDS extension of COVID-related categorizations up through the end of March next year- is there anticipation that those will at some point begin to capture the large number of COVID-related OTAs that have been reported in prior weeks?
• Is the extra DPA request included in the $10.8 billion previously discussed, or in the other part of the DOD supplemental exercise?
• Will there be an Oct 1st start date for the DFARS clause from CCMC?

About the authors

Keith Webster

Keith Webster, president of the U.S. Chamber of Commerce’s Defense and Aerospace Council, guides the focus of the council to strengthen the U.S. defense and aerospace industries by influencing domestic and international policy on behalf of its members.

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