The Voice of American Aerospace and Defense.
The Assistant Vice President for Acquisition Policy ( hereinafter, “AVP – Acquisition Policy”) supports the Vice President for National Security and Acquisition Policy on all matters relating to DOD acquisition and represents AIA on these and related issues to the membership, executive branch agencies, legislative offices, and other stakeholders. The incumbent may be called upon periodically to serve as the acting Vice President, National Security & Acquisition.
The incumbent works with and seeks input from member companies, councils, and committees, and is responsible for monitoring, analyzing, recommending, and advocating policies on: reforming the defense acquisition system, federal government regulations, and DOD policies that impact the defense industry. The incumbent will also be responsible for advocacy for the strength and future health of the defense industrial base and the supplier management base that is critical to the industry.
Nature and Scope of Work:
This position reports directly to the Vice President, National Security and Acquisition, and interacts periodically with member CEOs and senior company representatives in the membership.
The incumbent maintains regular contact with government officials and representatives from a variety of cabinet and related departments including but not limited to the Departments of Defense (primarily the Office of the Under Secretary of Defense for Acquisition, Technology & Logistics and the Service Acquisition offices) and other cabinet agencies and related offices. Periodically, the AVP – Acquisition Policy may accompany the Vice President for National Security and Acquisition Policy, other senior staff from AIA, including the President and CEO of AIA, to: meet with members of Congress and staff, and prepare or provide testimony on authorized association positions before Congress and others; meet with senior Administration officials; and meet with senior member company representatives.
As AIA’s lead for acquisition policy issues, the incumbent serves as an expert and central resource for AIA and responds to inquiries from member companies, government officials (civilian and military), the public, and the press seeking information and background data. These inquiries range from general questions to highly technical requests requiring significant effort to assemble data and background information.
The incumbent will be called upon frequently to present industry’s views orally and in writing to government and industry officials and to the media, and to represent the association in coalitions that are formed to present a unified approach on acquisition policy issues of mutual interest. The AVP – Acquisition Policy is also expected to represent AIA positions as a spokesperson at conferences and seminars. The incumbent will contribute articles and news items to AIA publications, highlighting issues and developments falling within the sub-division’s domain, and prepare white papers and summaries of such issues for use during AIA or outside meetings.
The AVP for Acquisition Policy has responsibility for supporting, coordinating and otherwise assisting with activities of a variety of AIA sponsored councils, committees and working groups, including, but not limited to:
Procurement and Finance Council; Supplier Management Council; National Security Policy Council; Washington Procurement Committee, Intellectual Property Committee, Commercial Items Working Group; Counterfeit Parts Working Group; and the Conflict Minerals Working Group.
Additional related duties include:
Analyzes significant industry problems and synthesizes the concepts and ideas coming from government contacts and the numerous council, committee and working group activities into cohesive patterns and trends;
provides insights into future aerospace developments to prompt deliberations and actions;
builds industry consensus among member companies on all topics related to relevant issues and serves as staff liaison to internal and external groups dealing with related issues; and,
oversees meeting arrangements for periodic council, committee and working group meetings (including, developing the agenda; assembling background information and materials; arranging for speakers and other participants; site selection and facility; and ensuring that minutes are prepared), and approves expenses associated with all council and committee meetings.
Year-End Review and Forecast
EXCERPT FROM PREPARED REMARKS:
Marion C. Blakey, President and CEO, AIA
December 17, 2014
Good afternoon. I’d like to thank Jennifer and the Communications Council for your great work this past year and congratulate Clif Berry for receiving the Lyman Award. Clif, we appreciate your service to our country and your outstanding body of work on aerospace and defense history.
My thanks also go out to L-3’s Chairman, President and CEO Michael Strianese for his great leadership of AIA’s Board of Governor’s this year. We look forward next year to having David Joyce, the President and CEO of GE Aviation as our Board Chairman and Marillyn Hewson, the CEO, President & Chairman of the Board of Lockheed Martin as our Vice Chairman.
Today, for the 50th time, we gather to celebrate an industry which keeps innovating, keeps saving and improving lives and keeps inspiring our youth. Just think of the future Mars explorers who were so excited to view the magnificent launch and splashdown of Orion twelve days ago. And that’s just one example of the kinds of things our industry does. With the FAA, we’re rebuilding our aviation infrastructure from the ground up – modernizing a 1950s-era radar-based system into a 21st Century satellite-based system. We’re doing cutting edge research on advanced aeronautics like hypersonic scramjets that could lead to significantly shorter trans-oceanic flight times.
But we also gather in a time of significant challenge as we witness unprecedented conflicts cascade around the globe. The events of 2014 remind us that new national security threats can come from old foes or materialize out of nowhere due to a chaotic region’s ongoing strife.
Twenty-fourteen began when the leader of a major power hosted an international event devoted to peaceful athletic competition. But shortly after the Olympic flame was doused, this strongman brazenly invaded a peaceful neighboring country. And then a group of thugs tried to rewrite the Middle East map and gain new adherents through tactics that would shame a barbarian. And tensions in the Far
East, never far submerged, have begun bubbling to the surface again.
Looking at the world’s dangers through either the rose colored glasses of a naïve isolationist or under the green eyeshade visor of a fiscal ideologue simply doesn’t work. It presents a false-color image of reality. It inhibits the clear headed thinking we desperately need about national security and America’s competitiveness.
Today, we’re announcing the results of a poll that shows the American people definitively share this judgment. Right after the election, AIA commissioned a Harris Company voter survey. Harris found that Americans widely recognize security threats are increasing, and are genuinely concerned that the U.S. is less secure than a year ago. We’re releasing findings from the survey today. Here are a few highlights:
• First, seventy-eight percent of voters believe the hostile activities of ISIS, al Qaeda and other groups contesting for control of Syria and Iraq represent an increasing national security threat.
• The concern about this threat is bipartisan; ninety percent of Republicans and 69 percent of Democrats are worried about our security as a result of what’s going on in the Middle East.
• Also, seventy-three percent say they believe the U.S. is less secure, due to cuts in planned military budgets of nearly $1 trillion over a decade.
I should warn members of Congress and potential presidential candidates to ignore the following survey finding at their own peril.
• Given the evolving and increased threats to America’s security, a solid sixty-nine percent of voters want to increase national security spending relative to the federal budget caps set more than three years ago. This view is shared by a majority of voters across party lines—83 percent of Republicans, 63 percent of Independents and 60 percent of Democrats.
• And the same number of voters—sixty-nine percent—say they would be more likely to support a candidate who wants to increase spending on national security.
These numbers don’t surprise me one iota. I’ve long felt the public understands the need to invest in national security, and in the aerospace technologies that propel economic advancement.
Unfortunately, public policies have not kept pace with public sentiment. But that’s not for lack of effort. You all know AIA’s Second to None public education campaign made a lot of noise about the risks of austerity imposed by the Budget Control Act.
And many officials agreed with our point that it’s irresponsible to make defense and domestic R&D investments bear the brunt of budget cuts. And while our companies did well in the FY2015 “Cromnibus” [CROM – ni- bus] bill that passed this weekend, including bumps in the budgets of FAA, NASA and NOAA, the budget caps still remain with us going forward. In addition, last night the Senate passed the short-term tax extenders bill including the R&D tax credit, which is of significant importance to our industry. But the Senate failed to pass an extension of the Terrorism Risk Insurance Act, so we’re not going to take our hand off the throttle with our messaging. And we’re going to add the voices of those pro-aerospace and defense voters to our effort.
In recent months the Second to None Campaign has morphed into a state-of-the-art on-line grass roots advocacy effort. We call it the Second to None Coalition. This is the first time ever that our industry has engaged in a major grass roots advocacy effort like those of other organized political movements of recent vintage. And in just the last week, we’ve added more than 13,000 members to our daily growing list of people who are ready to advocate forcefully to our elected officials on behalf of the investments we need to make to grow our economy and keep our nation safe.
We’ll welcome the voices of our coalition members in the coming months as AIA and our member companies engage with the new Congress and with the national political figures already making travel plans to visit balmy Iowa this winter.
Our message is that elected leaders must address the need for the U.S. to maintain our military superiority and keep ahead of the technology development curve. They also must recognize our military needs the capability to respond to new security challenges that often materialize due to major natural disasters and outbreaks of deadly disease such as the recent Ebola crisis.
We’ll also contend that the downward spiral of defense spending and federal R&D investment is leading to a dangerous decline in our highly skilled aerospace and defense workforce. Sadly, if we woke up tomorrow to a new crisis, we just can’t snap our fingers to get many of our skilled workers back. In addition, our skilled workforce must be reinvigorated as the baby boom generation of engineers and scientists begins to retire en mass.
A third message is that budget austerity undermines our ability to invest in critical R&D that leads to serendipitous breakthroughs like GPS. Our Lyman award winner, Clif Berry, tells us that when he first attended this luncheon 39 years ago, the Pentagon was just beginning to develop the GPS satellite navigation system. I have no doubt sitting amongst us is a bright engineer who’s working on the next great technological advance that will blow our socks off. But I also fear there’s a project manager in our midst who’s worried to death that the budget axe may kill the promising concept she’s working hard to support. Do we really want the U.S. sitting on the sidelines when the next great technological leap is launched at the Baikonur (Bike-a-Nor) Cosmodrome or occurs in China’s Center for Nanoscience and Technology?
All of these concerns translate into clear policy objectives that AIA is pursuing on the industry’s behalf. First and foremost, we’re telling Congress it’s high time they relegate the budget caps to the dumpster of bad policy ideas. The decade-long defense modernization holiday based on the dangerous illusion that history’s zealots have gone on holiday simply must end.
Clearly more and more legislators, alert to changing public opinion, want to address the defense cuts. But we also recognize a one-sided deal will not pass in this divided government. Congress should also take on the domestic R&D investment gap and address other domestic priorities, in the context—as we’ve long said—of a comprehensive deal involving revenue and entitlement reform.
As was the case in 2013, we’ll be pushing for congressional reauthorization of the Export Import Bank of the United States. Our manufacturers of civil passenger and business aircraft, helicopters, and satellites and their thousands of workers count on Ex-Im financial support to compete for international sales on a level playing field in this increasingly competitive marketplace.
This past year, even though we were told the Ex-Im deck was stacked against us on Capitol Hill we took the attitude of “Game On.” And let me tell you, we weren’t subtle about engaging Ex-Im’s foes by starkly pointing out the hazards of unilateral economic disarmament. And we knew we were having an impact when at a key congressional hearing Ex-Im President and Chairman Fred Hochberg held up one of our print ads to make a vivid point. What our ad essentially said is that the Chinese, Russians and French will eat our lunch, or more aptly, take away American jobs, if Congress doesn’t reauthorize the Bank.
Such advocacy helped win the battle, as Ex-Im was extended for nine months, but we’ve not yet won the war. You can count on AIA carrying forward the fight for a full reauthorization until a decisive victory is obtained.
AIA will also be very proactive when the FAA reauthorization bill comes up next year. We’re hoping for a solid bill that further streamlines the aircraft certification process, accelerates air traffic system modernization, and facilitates integration of unmanned aircraft into the National Airspace System. Further, we want the FAA enabled to freely support our superior aviation products in international forums. If we truly want a safer and more efficient global aviation system, buy American is a good place to start.
Turning to the Executive Branch, AIA will be pounding the pavement to push the Administration to produce tangible results for our industry. We hope to see in 2015 real movement on a National Defense Export Strategy and a broader aerospace and defense trade initiative.
We’re continuing to work with the State Department to reform the remaining categories of export controls. By the way, since the reforms started a year ago, there has been a sixty-four percent reduction in the number of ITAR licenses submitted to the State Department to export aircraft and aircraft engine parts. That corresponds to $14 billion in these less sensitive technologies being licensed through the more appropriate, less onerous Commerce system.
Next year we’ll also be working to ensure the Pentagon moves forward on needed defense acquisition system reform. Ash Carter is no stranger to this issue. We’re looking forward to his confirmation and we’re expecting he’ll provide the clear leadership that we need to achieve meaningful changes to a very cumbersome and inefficient system. The current system hurts our smaller firms, inhibits innovation and makes it harder to get needed equipment in the hands of our war fighters.
I suspect some of you may be thinking, Marion, you’ve spoken about a lot of policy issues but haven’t touched on your annual forecast numbers. Yes, this speech is a departure from the past, but we don’t want you to go away empty handed. In front of you is a card with simple directions that will allow you to download our entire year end review and forecast report.
I would like to mention one highlight from the report. Despite the downward pressure the federal budget situation has exerted on our industry, with a big boost from civil aircraft and space sales abroad, overall aerospace exports grew from roughly $111 billion in 2013 to nearly $119 billion. This resulted in a net surplus of nearly $61.2 billion, our best aerospace trade balance in history.
As you know, the Administration promised five years ago to double U.S. exports by next year. Make no mistake this industry is doing its part to make that pledge come true.
Let me close with a few thoughts as we look back on the past few years of paralyzing gridlock in Washington. An era I think it’s fair to describe as wrought with political polarization and dangerous procrastination.
I will offer two simple messages for members of the incoming 114th Congress, and say the same to the current Administration as well as to candidates gearing up for the 2016 elections. First, on behalf of the aerospace and defense industry, we make one simple request – please start listening.
So to the new Congress, remember the saying “Ideology knows the answer before the question has been asked.” Look at the polls – the American people are fed up with Washington, fed up with elected officials letting ideological extremism serve as an excuse for failing to listen to the public as opposed small factions of party activists. They demand that you ask the right experts the right questions.
Let me put my advice in the context of our industry. When the small business owner from your district tells you failure to reauthorize Ex-Im puts his workers at risk, listen first to this all-important voice from back home. Be sure you remember those words when folks at the Club for Growth tell you that your “club score” will go down if you don’t vote against the Bank. You know they’re hinting you might not see as many PAC dollars next cycle.
When the Joint Chiefs tell you American lives will be lost if we don’t restore defense investment to adequate levels….When an intelligence analyst tells you that defeating ISIS requires new strategies and new technologies for the war fighter….And when the wounded warrior at the VFW back home tells you that his mine resistant, ambush protected vehicle saved his life…listen very carefully.
And may the words of these real experts ring clearly in your ears when it’s time to go to the negotiating table and weigh America’s national security and investment needs up against our fiscal challenges.
Yes we can have a “grand bargain,” but one that doesn’t force us to sacrifice the very activities that make our nation strong and secure.
My final message for the 114th Congress and all candidates looking at a run in 2016 – is remember those sixty-nine percent of voters who want to back candidates who support more spending on national security. Ask yourself; am I ready to make the tough decisions in the next twelve months to protect America?
If not, we respectfully suggest you consider the words of Winston Churchill, who in a more dire time said, “the Americans will always do the right thing…after they’ve exhausted all the alternatives.” I sincerely hope you’re at that point.
With that, thank you again for the tremendous opportunity to speak to you at this, my eighth year end luncheon, and I’ll be happy to take your questions. When you step up to the microphones please identify yourself and your organization.
Arlington, Va. — The Aerospace Industries Association released data today from a study conducted on their behalf by Harris Poll showing that after discussing present and future security threats facing the United States, more than two thirds of registered voters (69 percent) say that given the evolving and increased threats to America’s security, the U.S. government should increase spending on America’s national security relative to the caps set more than three years ago. The same number (69 percent) says they would be more likely to support a candidate for public office who supports increased spending on national security. The study was conducted by telephone in November among over 800 registered voters.
“These numbers don’t surprise me one iota – the public understands the need to invest in national security, and the aerospace technologies that help provide that security and propel economic advancement,” said AIA President and CEO Marion C. Blakey. “The new Congress should sit up and listen to them attentively.”
A majority of voters across party lines (83 percent of Republicans, 63 percent of Independents and 60 percent of Democrats) share the sentiment that the U.S. government should increase national security spending relative to current budget caps. In addition, nearly four out of five voters (78 percent) say they believe threats to American security raised by increased activity from ISIS/ISL, al Qaeda and other groups in Syria and Iraq are increasing, including majorities of Republicans (90 percent), Independents (75 percent) and Democrats (69 percent). Finally, 73 percent say they believe the United States is less secure due to cuts of nearly $1 trillion over the 2012-2022 timeframe in planned budgets for the military, including majorities across the entire political spectrum (Republicans – 90 percent, Independents – 71 percent, Democrats – 55 percent).
“Public polls are at historic lows in terms of voter perceptions of Congress,” Blakey said. “If this new Congress is to restore any faith in our political process, they can start in January by revisiting the budget caps to reflect today's national security needs.”
The study was conducted November 13 – 16th, 2014 by telephone by Harris Poll on behalf of AIA among 818 registered voters nationally, with a sampling error of +/-3.6%. A full methodology is available upon request. Results are weighted to be representative of voters demographically and geographically across the United States.
Today, AIA held its 50th annual Year-End Review and Forecast. Along with providing an overview of the aerospace and defense industry, AIA released poll results that focus on the public's opinions about national security.
Arlington, Va. — F. Clifton “Clif” Berry, Jr., a long-time journalist, author and public relations professional in the aerospace and defense field, has been selected to receive the 2014 Lauren D. Lyman Award for outstanding achievement in aerospace communications.
“We’re delighted to recognize Clif Berry with this year’s Lyman Award,” said AIA President and CEO Marion C. Blakey. “His long service, unique insights and strong voice on our industry epitomize the qualities that Deac Lyman brought to his craft.”
Berry served in the U.S. Army for more than 20 years before retiring as a Lieutenant Colonel in 1975, including public affairs duties at the Office of the Assistant Secretary of Defense (Public Affairs). He went on to posts as editor at a wide variety of trade publications, including Armed Forces Journal, AIR FORCE Magazine, Air Power History and National Defense magazine. He has also written and packaged a lengthy list of non-fiction books on aerospace and defense topics. He served for more than two decades on the board of directors of Summit Aviation at Middletown, Delaware, and was a master parachutist and private pilot with land and seaplane ratings.
When asked about lessons learned, Berry said, “Do the research, ask questions, listen, learn and write.”
Berry will receive the award at AIA's 50th Annual Year-End Review and Forecast luncheon Wednesday, Dec. 17.
The award is named after Lauren “Deac” Lyman, a Pulitzer-prize winning aviation reporter with the New York Times who later had a distinguished career as a public relations executive with United Aircraft, a predecessor to United Technologies Corporation. First awarded in 1972, the prize goes to a journalist or public relations professional in aviation who exhibits Lyman’s high standard of excellence. UTC is the longtime sponsor of the award.
EXCERPT FROM PREPARED REMARKS:
Timothy Keating, Senior Vice President, Government Operations, The Boeing Company
December 12, 2014
Ex-Im is but one case study of the U.S. political system losing its bearing. Another is the legislative impasse over the size and composition of the federal budget. Through sequestration Congress has tried to address what really is a problem with entitlements and other forms of mandatory spending – which make up roughly two-thirds of federal outlays – by gutting discretionary spending.
Under current law more than $70 billion in immediate, across-the-board cuts to discretionary programs and activities will go into effect in Fiscal Year 2016, shared equally by defense and domestic agencies; all of which will be felt, one way or another, by the companies and communities represented in this room and across the state of Virginia.
Remember that projected defense budgets have already been cut significantly since the post-9/11 peak – by nearly $1 trillion when you include program cancellations and other reductions by Secretary Gates, the 2011 Budget Control Act, the sequester of 2013, and then Bipartisan Budget Act at the end of last year.
And because of the way sequestration is structured – with massive savings needed immediately and pay and benefits off-limits – a 10 percent top-line sequester amounts to significantly bigger cuts to training, maintenance, procurement, and research and development accounts; this at a time when the world is growing more turbulent and rival powers are modernizing their armed forces.
Companies like Boeing saw the writing on the wall and made some difficult, at times wrenching, changes to our workforce and geographic footprint to prepare for the defense downturn. The Department of Defense, by contrast, has been prevented from making the strategy-guided management choices necessary to maximize the funding available to sustain our military readiness and technology superiority.
Furthermore, with investment funding shrinking for military modernization it is all the more imperative to have a defense acquisition system that can make every dollar count – for the taxpayer and war fighter alike. We applaud the initiative of Senate and House Armed Services Committee leadership to solicit recommendations to further reform and, more importantly, improve defense acquisitions to reduce unnecessary red-tape while encouraging more innovation. Boeing is contributing to this effort and will provide the committees with its own list of recommended changes in a few weeks.
These management changes are so urgent because if sequestration returns – and stays for the rest of the decade – the U.S. defense and aerospace industry – most of which consists of small- and medium-sized firms in the 2nd and 3rd tier of the supply chain– will be forced to lay-off thousands of employees with unique military skills and close more factories and research labs. The lost capacity and capabilities resulting from these cuts cannot be rebuilt or brought back quickly if U.S. national security imperatives or budget priorities change in the future.
We can’t forget that sequester’s damage goes beyond the military to other key agencies of government – like Homeland Security, FAA, NASA, the FBI, NIH, and the State Department – that are important to public safety, future scientific breakthroughs, and America’s influence around the world.
Arlington, Va. — The Aerospace Industries Association presented its first Wright-Curtiss Legacy Award December 2 to U.S. Sen. Saxby Chambliss (R-Ga.), in recognition of his longtime support of the aerospace and defense industry.
Sen. Chambliss is a two-term Senator and was first elected to Congress as a representative of Georgia’s 8th District in 1994. Sen. Chambliss serves on the Senate Armed Services Committee, is currently vice chairman of the Senate Select Committee on Intelligence and co-chaired the Senate Aerospace Caucus. Throughout his nearly 20 years working on Capitol Hill, he has been widely recognized as a leading Senate expert on national security, homeland security and intelligence issues.
“The Wright-Curtiss Legacy Award recognizes a retiring legislator who has been a true champion of our industry. Senator Chambliss has been exactly that,” said AIA President and CEO Marion C. Blakey. “It is our honor to present the award, named for both Wright brothers and Glenn Curtiss, the aircraft industry’s founder, to Sen. Chambliss for his strong advocacy for America’s preeminence in aviation, space and defense. He has been true to the spirit in which the Wrights and Curtiss began this great American journey of success, innovation and leadership.”
“It has been an honor to serve as the co-chair of the Senate Aerospace Caucus and a pleasure working with AIA as advocates for the aerospace and defense industry,” said U.S. Sen. Saxby Chambliss. “Since the time of the Wright Brothers and Glenn Curtiss, the United States has been the world’s leader in the advancement of air and space capabilities. AIA is an integral part of that legacy and its continued support helps assure America’s place at the top of the field. I am proud of our accomplishments and honored to receive the first Wright-Curtiss Award.”
The new Wright-Curtiss Legacy Award is presented to retiring members of Congress who, across their tenure in office, have made a lasting impact on behalf of the aerospace and defense industry. The award, which recognizes an unwavering dedication to our industry’s commitment to national security, aviation and space endeavors, was presented to Sen. Chambliss at a Senate Aerospace Caucus reception on Capitol Hill.
(pictured left to right: Sen Saxby Chambliss (R-Ga.); The Honorable Frank Kendall – Undersecretary of Defense for Acquisition, Technology and Logistics; Incoming Senate Aerospace Caucus Co-Chair Sen. Jerry Moran (R-Kan.); Marion C. Blakey, President and Chief Executive Officer of the Aerospace Industries Association)
The future of America’s space program is here and we want you to meet some of the people who make it possible. Join us on December 3, 2014 for a live, on-line broadcast with some of the young engineers who are working to make the Orion EFT-1 mission a success.
AIA's National Aerospace Standards are now available in digital 3D. These 3D standards can help increase efficiency and simplify the design and manufacture of complex products.
Responsible for addressing issues and strategies related to communications with news media, decision makers, the aerospace and defense community, and the general public. The Council also discusses best practices in communications. AIA contact: Chip Sheller, Vice President, Communications.
On Wednesday, November 5, 2014, the National Aeronautic Association named AIA and the National Association of Rocketry (NAR) the 2014 recipients of the Frank G. Brewer Trophy.
On Wednesday, November 5, 2014, the National Aeronautic Association named AIA and the National Association of Rocketry (NAR) the 2014 recipients of the Frank G. Brewer Trophy. The award serves to recognize an “…individual, a group of individuals, or an organization for significant contributions of enduring value to aerospace education in the United States.”
AIA and NAR are presented with the Frank G. Brewer Trophy. From left to right: Betsy Schmit, Vice President, National Security, AIA; Bob Brown, President, Academy of Model Aeronautics; Trip Barber, TARC Manager, NAR.
Together, AIA and NAR organize the Team America Rocketry Challenge (TARC). This nation-wide youth program advances science, technology, engineering and mathematics education by challenging seventh through twelfth grade students to design, build and fly model rockets. Student’s rockets must meet specific design criteria and be flown within certain height and time windows in order to advance in the competition.
Since its establishment in 2003, TARC has involved over 60,000 students nationwide in its program.
About the Brewer Trophy
Official Press Release
Featured this quarter in the Executive Report: A message from Marion Blakey regarding the 2014 elections, Q&A with Aurora Flight Sciences' John S. Langford, a Farnborough Air Show recap and much more.
The Executive Report is an AIA quarterly publication which provides news and information about our association membership, AIA initiatives and events, and other information from around the industry.
Featured this quarter in the Executive Report:
Cybersecurity attacks continue to increase in frequency and sophistication for the aerospace and defense industries. A new requirement of contracting with the Department includes a new information security clause:
DFARS clause 252.204-7012 to safeguard Unclassified Controlled Technical Information (UCTI), effective November 13, 2013. The clause is required for all new DoD contracts and subcontracts and will affect companies of all sizes.
In this paper, AIA helps you understand:
The new DFARS clause and how to comply with Security and Incident Reporting Requirements
Marion C. Blakey, President and CEO, AIA
The 113th Congress will soon be in the history books, with a record for advancing long-term economic growth that's spotty at best. Indeed, there are a couple of significant actions legislators could take that would tangibly benefited jobs creation and business performance.
Unfortunately, partisan gridlock has gotten in the way.
The research and development tax credit, which provides an important incentive during these times of fiscal austerity for thousands of companies to make long-term investments in innovation, is critical to creating economic growth. At nearly $10 billion a year, this credit supports companies that invest working capital in basic research and in applied research aimed at the creation or improvement of products. More than 70 percent of the credit is used to fund the salaries of R&D workers who hold the kinds of high-quality jobs that fuel our national economy, with the remainder applied to investment in new plant and equipment. Unfortunately, although the House passed a permanent extension of the current credit, the Senate has yet to act, which may result in companies declining to make positive investment decisions in this climate of uncertainty.
Currently, the U.S. significantly trails other leading countries in providing incentives for companies to conduct research and development. The Information Technology and Innovation Foundation estimates the U.S. ranks 27 out of 42 countries in R&D tax incentive generosity, either through providing incentives such as cash grants or enhanced tax deductions. When you couple this fact with the high U.S. corporate income tax rate one must ask if we are on the right track or wrong track in terms of competitiveness. Action by the upcoming lame duck session of Congress or by the 114th Congress to make permanent and strengthen the existing R&D tax credit would move us in the right direction.
I’ve also written in the Washington Business Journal about the need to make permanent the operations of the Export Import Bank of the United States. The Ex-Im Bank helps finance the export of billions of U.S. goods and services at a net gain to the taxpayer, supports good American jobs — 205,000 last year — and strengthens the aerospace and defense industrial base by helping large, medium and small companies create new markets abroad, thus mitigating the impacts of budget austerity at home. Indeed, some of our industry’s greatest gains in recent years have come through Ex-Im aided sales abroad of passenger and general aviation aircraft, helicopters, launch vehicles and satellites.
Local companies have greatly benefitted from Ex-Im. In 2013, 52 Virginia companies assisted by Ex-Im exported $615 million in goods and services; 43 Maryland companies totaled $388 million in Ex-Im aided exports; and 13 District of Columbia companies had $57 million in exports boosted by Ex-Im.
As the congressional session wound down in September, Congress reauthorized Ex-Im for nine months. While the Bank will remain operational for certain until June, our industry and exporters need the long-term assurance that the Bank will be there for them.
EXCERPT FROM PREPARED REMARKS:
Timothy Keating, Senior Vice President, Government Operations, The Boeing Company
September 30, 2014
U.S. Aerospace & Competitiveness
We need to do a better job of explaining what aerospace means to this state - and to this country. During an era in which the U.S. has been effectively de-industrialized - with factories closed, company towns abandoned, and millions of jobs outsourced overseas - aerospace has remained one of the shining exceptions. We are one of the last business sectors that still employ large numbers of Americans at good wages and benefits to make things in this country - and then sell those best-in-class products around the world. These are the kinds of companies that were the mainstay of the U.S. economy when I grew up in a union household in Scranton, Pennsylvania; the kinds of companies that created the American middle class and made this country the most prosperous and powerful on earth.
And when you hear people complain that "we don't make things in this country anymore," consider that just Boeing alone employs roughly 160,000 people that either build things or directly support those who do. Then there are the 2.5 - to 3 million jobs supported by the U.S. aerospace industry overall through our collective supply chain- jobs that allow people to make a decent living.
Traditionally, U.S. aerospace companies have not competed on price. We have, and will continue to stay ahead through innovation. Yet, as foreign competitors improve their level of quality, we cannot be oblivious to the cost of doing business going forward. Here the relevant impact is not on our bottom line today or next year - but, in the case of Boeing, on our ability to sell an airplane to an international customer ten or 20 years from now.
Manufacturing executives, especially those in export-driven sectors, talk a lot about being competitive. But, frankly, it's not always clearly understood what exactly we are referring to- and how that affects the difficult choices made with respect to the many elements of our business. In fact, a lot of the more controversial management decisions by Boeing- affecting labor, our supply chain, geographic footprint, public policy - start to make a lot more sense when put in the context of a global market that is growing more crowded and less forgiving every year.
For example, when aerospace companies and other advanced manufacturers receive tax incentives to either continue operating in Washington or start new programs here, it is widely reported and criticized as some kind of big tax giveaway. In reality, the dollar numbers you hear quoted represent, at best, a partial discount for the added cost of doing business in this state versus another part of the county with less onerous tax levels, regulatory schemes, and costs of living. On balance, the preponderance of the benefit will go to the Washington economy and, ultimately, into the state treasury. Yet rarely is that the story getting out, which is most unfortunate when some politicians in Olympia begin to flirt with the idea of rescinding these incentives.
All told, there needs to be a more informed dialogue between the public and private sectors about how together we can compete on a global stage - not only against foreign companies, but with entire countries, even continents in the case of Airbus and Europe, that have put the power and resources of the state into supporting their domestic aerospace sectors.
Washington, D.C. Dysfunction
When it comes to state and local government, at least things are getting done - from trying to balance budgets to getting potholes filled. That has not been the case in Washington, D.C., for several years now. When I first came to Washington, D.C, nearly three decades ago the partisan zealots on the left and right might duke it out on TV. But behind the scenes the pragmatists, bridge-builders, and party elders would find ways to get things done. Today folks on opposite sides of the partisan divide, or of any given issue, just aren't talking with each other - out of a combination of hostility, ignorance or, in many cases, fear of angering their own "base," and inviting a primary challenge.
The result last year was budget sequestration, another blow to our country's shrinking defense industrial base, followed by a federal government shut-down - the latest in a series of 11th hour crises and 'cliffs' that replaced the regular, rational, and constitutional process of making laws and passing budgets.
Due to the leadership of Senator Murray, the Congress was able to come together last December with the Bipartisan Budget Act, which mitigated temporarily the impact of sequestration. In that same spirit - of principled yet pragmatic compromise - we have to find a way to make progress in a number of areas; areas in which powerful and polarizing forces are pushing in the opposite direction. The reasons are varied - deepening income inequality, demographic and cultural shifts, growing distrust of established institutions of all kinds, global business especially.
There is probably no more illustrative - or distressing - example of this phenomenon than the fight over the U.S. Export Import Bank.
As I mentioned earlier, aerospace has the distinction of being one of the last U.S. manufacturing sectors that is competitive on a global level, with a $72 billion positive balance of trade. It's no surprise that Boeing represents a big part of that surplus, with $49 billion in foreign sales last year.
A significant part of this growth is attributable to carriers in developing markets. For example, just last week, Ethiopian Airlines announced another commitment to Boeing, this time for 20 of the 737 Max., the largest single Boeing order by an African carrier. While the financing arrangement will be determined closer to delivery, Ethiopian Airlines has used the Export-Import Bank to buy Boeing airplanes in the past.
We appreciated Senator Cantwell's support as this deal was brought to fruition. She continues to be a champion of American manufacturing and the Ex-Im Bank in the U.S. Senate illustrating, once again, the importance of enlightened and engaged political leadership. As I mentioned at the beginning, the business we have chosen is one in which government's role is inescapable and public-private partnerships are essential.
This partnership is so important because the international market for aviation is not a level playing field. Just about every other developed country - and now a few developing nations as well -supports its domestic aerospace industry through credit guarantees, low-interest loans, or other means to boost exports. Boeing's major global competitor for commercial airliners, Airbus, has been lavishly and unlawfully subsidized by its European patrons - to the tune of $18 billion according to the World Trade Organization.
Airbus wants to control most of the global commercial airliner market and they are willing to use every tactic to achieve that goal - even selling their planes at a loss. Next up is China, which has poured tens of billions of dollars - directly or indirectly - into its state-owned aerospace company to develop airliners that will be able to compete directly with Boeing and Airbus.
In this environment, the Export-Import Bank gives American manufacturing a fighting chance in the global arena. Ex-Im has long enjoyed broad bi-partisan support in the Congress, and presidents ranging from Ronald Reagan to Barack Obama have favored its continued operation. In 2012 the Bank was re-authorized - but it was a near-run thing. This year many of the same groups - mostly far-right political consultants, think tanks, and congressmen - banded together in a fit of ideological road rage to kill the Bank The temporary extension recently enacted in many respects leaves us worse off than before. The extension is to next summer, when in all likelihood the Congress will be more Tea-Party friendly, more polarized, than even now. And a short-term extension does not provide business certainty - both for U.S. exporters and their potential foreign customers.
I won't mince words about the consequences of a failure to re-authorize the Export Import Bank. Slowly but surely Boeing would lose more airliner contracts to Airbus and eventually other foreign companies that are able to include official export credit as part of their sales pitch. We would survive, but would build and sell fewer planes and employ fewer workers. The same would apply to aerospace products like satellites and other high-end equipment for mining, construction, and energy.
Spending too long in Washington, D.C., can make you a bit jaded and hard to surprise - but it is still amazing to me that the people going after Ex-Im are basically willing to dismantle the U.S. aerospace industry and ship the jobs to France or China - all in order to raise some extra money and show their most rabid supporters that it is possible to kill a government program - irrespective of the real-world consequences.
D.C. Aerospace Agenda
And it's not just Ex-Im. Without action by the Congress budget sequestration will return in October 2015 - roughly $100 billion in across-the-board cuts to the military, NASA, FAA, Homeland Security, FBI, and more. All of which will be felt, one way or another, by the companies and communities represented in this room.
Through sequestration Congress has tried to address what really is an entitlements problem - remember that Social Security, Medicare, and Medicaid make up roughly two-thirds of federal outlays and are growing - by gutting discretionary spending.
Yet our collective industry efforts must go beyond mitigating or reversing the negative - Ex-Im and sequestration - to advancing a positive agenda that will move this economy forward and expand the proverbial pie when it comes to jobs, wages and living standards - all of which could help address the underlying sources of discontent that have shaped the political dynamics of recent years. At the top of the list would be the Trans-Pacific Partnership, which by one estimate could add another $80 billion annually to the U.S. economy. Then there is corporate tax reform and shifting to an effective top rate similar to our major global competitors - again, not a windfall, as some will no doubt characterize it, but a partial remedy to the unworkable situation we have today.
So all of us who care about the national strategic asset that is American aerospace - the workers we hire, the communities we support, the defense and security we provide for this country - need to redouble our efforts and make it clear how high the stakes are. We also need to be clear that we will remember who stood with us during these next critical months. And we need our state and local partners with us every step of the way.
What's required is something rare these days but, I believe, still possible in our nation's capital: real, old-fashioned legislating in which each side holds their nose and gives a little - whether on the Ex-Im bank, domestic spending, defense spending, free trade agreements, or taxes. All this would lift the dead weight of dysfunction that's hanging over our military, our industry, and the American economy.
As you can see, we have a lot of work to get done.
Check back in 2015 for more information on this show.
Check back in 2016 for more information regarding the next show.
Transitioning to lead-free electronics in the Aerospace and Defense (A&D) industry demands careful analysis and research into the performance, costs and availability of these materials. The Aerospace Industries Association sponsored a Joint Government and Industry Executive Forum for Lead-Free Electronics to examine the issues underlying implementation of these materials. The participants concluded a clear roadmap with discrete milestones, funding to accomplish these efforts and dedicated government leadership are key to the A&D industry’s successful transition.
Why is this issue so important? The A&D industry designs and manufactures products that carry more than three billion passengers worldwide on any given day as well as systems which are vital to our national security. Our ability to maintain public safety and assure our warfighters’ mission success cannot be compromised or risked.
In response to the 2003 European Union Directive on the Restriction of Hazardous Substances, the commercial electronics industry transitioned to lead-free (Pb-free) electronics. Although the A&D industry leverages consumer and commercial technologies to provide affordable design solutions, many of the foundational commercial material standards are inadequate when applied to A&D products. Therefore a growing technology gap between the industries has appeared. Investment is needed to bridge this gap, so that A&D systems can preserve access to affordable commercial technology, while continuing to provide the requisite performance and reliability. Based on experience, the A&D industry believes a nationally coordinated approach is the most efficient way to bridge this gap.
Arlington, Va. — The Aerospace Industries Association congratulates Robert L. “Bob” Hoover on his selection as the recipient of the 2014 Wright Brothers Memorial Trophy. The Wright Trophy is annually awarded to a living American for “…significant public service of enduring value to aviation in the United States.”
“I’m delighted with the decision to honor Bob Hoover with this year’s Wright Brothers Trophy,” said AIA President and CEO and 2013 Wright Trophy recipient Marion C. Blakey. “His service both as a military pilot and war hero, as well as his lengthy career as the world’s greatest air show pilot, is a shining inspiration to us all. He richly deserves this award.”
Hoover served in the U.S. Army Air Force during World War II, flying 58 successful missions before being shot down and captured by Germany. He later escaped from Stalag Luft 1 and returned to Allied lines in a stolen Focke-Wulf FW190. He was awarded the Distinguished Flying Cross, the Soldier's Medal for Valor, the Air Medal with Clusters, the Purple Heart, and the French Croix de Guerre. His civilian career as an air show pilot lasted more than 50 years. He is believed to have performed in more air shows, in more types of aircraft, in more countries and before more spectators than any other pilot in the history of aviation.
“This trophy is truly one of the most important, prestigious and historic awards in aviation and aerospace,” Blakey said. “I was honored to serve on this year’s selection committee and heartily applaud the decision to recognize Bob.”
Statement by Aerospace Industries Association President and CEO Marion C. Blakey on FAA’s decision to permit limited use of unmanned aircraft systems (UAS) to produce motion pictures
Arlington, Va. — By permitting the use of unmanned aircraft systems in film production, FAA has taken the first of several necessary steps towards the integration of UAS into civil airspace while encouraging continued research and development of UAS technologies. The decision acknowledges the long history of safe operations in both civil and military applications of remotely piloted aircraft. We hope this will pave the way for additional services and industries to utilize UAS technologies.
The focus of these petitions clearly was on safe UAS operations, aligned with FAA’s legitimate concerns for the safety of both manned and unmanned aircraft. The proposed actions to ensure safe operations are sound and very much consistent with the safety focus of the FAA. These approved operations will provide FAA with real-world case studies and data that can expedite successful UAS integration, leading to further job creation and revenue growth around the country.
This country is the birthplace of the motion picture, television and aviation industries, and the United States has a significant technological advantage in this new frontier of aviation. The aerospace and defense industry applauds FAA for taking this step and we look forward to further progress in integrating the next generation of aircraft into our nation's airspace.
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OIG Audit fails to recognize ADS-B’s role within NextGen system of systems when calculating return on investment
Statement by Aerospace Industries Association President and CEO Marion C. Blakey
Arlington, Va. — The Department of Transportation Inspector General’s report on issues surrounding the Automatic Dependent Surveillance-Broadcast (ADS-B) system fails to state the obvious, that the infrastructure necessary to implement ADS-B is on time, on budget and on the job. It is imperative that to improve our air transportation system and to enhance safety for future generations, the aviation industry, operators and government must all do their part to make NextGen a success.
NextGen and the critical step forward that ADS-B provides were designed as investments with both immediate and long term value. The system, though far from completed, is already delivering a more efficient and safe airspace environment in places like Alaska and the Gulf of Mexico. The long term return on investment will be seen for decades as America’s competitiveness and the safety of the flying public improve dramatically. This report fails to recognize the long term benefits and return on taxpayer investment that the initial results signal as being on track.
In addition, recent press reports have mischaracterized certain aspects of the OIG audit – particularly with respect to the number of ground stations. The idea that “coverage gaps” exist which could compromise safety and incur additional costs is totally inaccurate. In fact, FAA’s contract had a baseline requirement to provide defined coverage rather than a certain number of ground stations. The contractor has exceeded the coverage requirement while remaining well within the fixed-price contract. With the completion of that contract, new interest from stakeholders including states and the general aviation community, new requirements have arisen – thus increasing demand for ADS-B beyond the original contract.
I like comparing what we are accomplishing in the skies with the initial development of highways across America. We had to build the infrastructure before all of the progress and benefits of that highway system would ultimately be realized by the nation. But once we did, onramps connected local roads to superhighways, leading to further investments in infrastructure such as gas stations and restaurants, increased commerce and hiring, and other intangible benefits. It’s a similar situation with ADS-B and NextGen. ADS-B functions as one of the onramps to the superhighway of NextGen’s system of systems. When fully implemented, NextGen will reduce flight delays, invigorate the economy, maintain our global aviation leadership, generate jobs, save fuel, reduce CO2 emissions and, most importantly, improve system-wide safety for passengers and crew.
There is no turning back on improving the safety and efficiency of the nation’s aviation infrastructure. Its success is critical to millions of Americans and it must not be jeopardized prematurely by unfairly condemning one element of the system before that system is fully realized. The Inspector General's audit report title itself identifies the crux of the problem, that full ADS-B benefits are limited due to delays in user equipage. As more users equip with the necessary advanced avionics, the benefits of the system will become more apparent.
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Get insights on defense trade, a recap of the 2014 National Aerospace Week, human spaceflight progress and more in this issue.
It’s been clear ever since the downturn in defense spending began that our industry would have to develop new approaches to protecting the national asset that is our defense industrial base. One such approach is to grow our industries’ markets overseas. In recent years, we’ve seen gratifying advances in U.S. sales abroad of civil-related aircraft, helicopters, satellites and launch vehicles. That said, I’m convinced we can do more on the civil side and there are ways for the U.S. to become even more competitive with defense-related exports, which in turn will bolster our nation’s national security, foreign policy and economic interests.
An increase in aerospace and defense exports can come none too soon, as figures from a Deloitte LLP study commissioned by AIA show that the share of the global defense market owned by U.S. companies declined from 69 percent five years ago to 61 percent last year. Also in 2013, Deloitte found that the total U.S. aerospace and defense industry had revenue growth of only 1.3 percent, compared to 5.4 percent growth for our European counterparts.
AIA has worked on a number of fronts to increase aerospace and defense exports in general, and to focus attention on the opportunity to increase defense exports. For example, we’ve helped lead the fight for the much needed reauthorization of the Export-Import Bank of the United States, the agency which provides badly needed loan guarantees and other financial assistance to U.S. companies that export civil aerospace products and services.
We’ve also championed the export control reform initiatives that will ease the burden on companies seeking to sell commercial satellites and related components and aircraft and aircraft parts to foreign customers. That said, there is more work that needs to be done by the Administration to advance export reforms affecting Unmanned Aircraft Systems and commercial spaceflight operations.
Further, working closely with key government officials, we’ve engaged the Defense Department and other government agencies in a closer partnership to present a unified front at international air shows like the Farnborough International Air Show this past July, thus allowing “Team USA” a greater ability to showcase our outstanding products to potential international customers.
Finally, with strong support from AIA’s International Council, we’ve sought U.S. government buy-in for a broader Aerospace and Defense Trade Initiative, one in alignment with the Administration’s objective of doubling U.S. export growth by 2015. We are getting traction for these proposals, as reflected by Secretary of Commerce Penny Pritzker’s statement in recognition of National Aerospace Week (September 14-20) highlighting our industry’s “positive contribution” to export growth. In her statement, Secretary Pritzker said, “The Department of Commerce is honored to partner with the Aerospace Industries Association of America and other government agencies on important strategies to provide U.S. aerospace companies with the best chance to succeed in the foreign marketplace.” I’m confident further AIA-U.S. government discussions will bear fruit in the coming months, and with the support of the Administration and both parties in Congress we can make significant progress toward strengthening American innovation and competitiveness through our export leadership.
At the AIA/NDIA Virginia STEM Workforce Call-to-Collaboration Forum held at Huntington-Ingalls in Newport News this summer, Virginia STEM Director Megan Healy announced her state’s commitment to establish a Southeastern Virginia STEM hub in the coming year.
As outlined by Healy, next steps in forming the Southeastern Virginia STEM network include creating a regional STEM council comprised of education, business and public policy organizations to oversee STEM education and public-private partnerships. Another priority is developing a regional infrastructure to assure consistency in the dissemination and implementation of standards in STEM programs. Because the needs of STEM employers are rapidly changing, Healy said the establishment of education programs that align with future jobs should be emphasized along with constructing learning and career pathways. To reach all students, she observed, resources must be provided to sustainable programs that encourage those from underserved populations in the region to enter and complete STEM pathways.
Healy also noted lessons learned from the Southeastern Virginia STEM hub will be shared as a model for other parts of the Commonwealth in the effort to establish a state STEM network with several regional hubs.
Opening the Forum, host Mike Petters, President and CEO of Huntington-Ingalls Industries, stressed the need to "believe our indicators" showing student performance in math and science is not satisfactory, and to take action. Petters called for changing the way we think about children in the education system to view them as the customers rather than the product. Our focus should be on ensuring the students are provided the tools they need to succeed in life and future careers, he said. Petters also urged attendees to "play the long game" in growing the future workforce by investing early in STEM education at early grade levels.
The next AIA/NDIA state STEM meeting will be held at the Ohio Aerospace Institute in Cleveland, October 1-2. To view the agenda and register, please visit: http://www.ndia.org/meetings/571A/Pages/default.aspx
The European Aviation Safety Agency (EASA) announced on July 30 it would not seek to regulate turbine engines to meet volcanic ash airworthiness requirements. Instead, the agency will continue to work with operators to ensure that flights conducted following volcanic eruptions avoid visible ash clouds. This is an important outcome for manufacturers and operators, both of which argued that development and circulation of new airworthiness standards regarding volcanic ash ingestion would be problematic.
Following the 2010 eruption of Iceland’s Eyjafjallajökull volcano, aviation agencies around the world, and particularly in Europe, sought a proactive solution to future flight deviations and cancellations caused by the massive ash clouds. Eyjafjallajökull caused the cancellation of nearly 100,000 commercial flights and temporarily stranded millions of airline passengers in the spring of 2010.
Shortly thereafter, EASA began to consider whether new airworthiness standards for turbine engines should be developed to ensure that these engines could better withstand volcanic ash ingestion. While industry agreed that further research may eventually be beneficial in this area, many manufacturers and operators argued that the prime responsibility for decisions regarding the safety of flight operations should remain with the aircraft operators, based upon detailed safety risk analysis and careful consideration of constantly updated data on the location of volcanic ash in flight paths. AIA members were active in discussions with EASA on this matter, and the International Coordinating Council of Aerospace Industry Associations coordinated formal comments from industry.
EASA, noting that opinions expressed were unanimous in this regard, concluded that there is no safety case that would justify an immediate and general rulemaking action to introduce a new volcanic ash airworthiness requirement for turbine engines. EASA further cited the fact that there have been no incidences of aircraft encounters with high-density volcanic ash in more than twenty years, when volcanic ash advisory centers (VAACs) were established. EASA intends to monitor and assess volcanic ash-related risks and encourage further research activities that can contribute to a better understanding of volcanic hazards. Industry will continue to strongly support these efforts, while applauding the EASA decision that avoids the promulgation of costly new standards that would have been extremely difficult to develop and implement.
The U.S. team in red flanked by the teams from France, Japan and Great Britain
The Raytheon-sponsored U.S. Rocketry Team from Canton, Georgia took second place at the seventh annual International Rocketry Challenge during the 2014 Farnborough International Air Show. Team USA out-performed their French and British opponents in the fly-off stage, but fell a few points short of the French team's overall score based on the presentation component of the contest. A group from Japan performed a demonstration launch, laying the groundwork for broader international participation in the 2015 challenge.
All four teams took advantage of their time at the air show to see the aircraft on display and learn about careers in the aerospace industry. Team USA's experience began with a visit to the U.S. DOD Corral for a tour of the U.S. military aircraft on display, followed by a dinner with the air crew. The students were also able to explore Farnborough’s displays and exhibits after completion of the rocketry competition. For a group of students with aspirations of being aerospace engineers, NASA scientists and officers in the Air Force, the trip was time well spent.
The International Rocketry Challenge's efforts to expose students to the aerospace sector builds on the experience more than one hundred teams had at the Team America Rocketry Challenge (TARC) finals held in The Plains, Virginia in May. At the TARC finals, students from around the country were exposed to an exhibit area with science demonstrations, aerospace themed games and the ability to interact with representatives from industry and government. The prior day, all finalists attended a Capitol Hill breakfast reception where they were able to showcase their rockets and meet with their elected officials. At the local level, many more teams this year had the opportunity to learn about our industry by working with mentors from TARC sponsor companies and National Association of Rocketry volunteers.
Registration for the 2015 Team America Rocketry Challenge is now open at www.rocketcontest.org. Sponsorship packages are now available as well. If your company is interested in sponsoring the 2015 challenge, please contact Miles Lifson at email@example.com or (703) 358-1033.
Statement by Aerospace Industries Association President and CEO Marion C. Blakey on the new collaborative climate action goals
Arlington, Va. — The Aerospace Industries Association is proud to join other leading civil aviation organizations in advancing substantive goals that improve air transportation fuel efficiencies and will assist in reaching carbon-neutral growth from 2020. Through our International Coordinating Council for Aerospace Industries Associations (ICCAIA), we have joined world airlines, airports, air traffic management organizations, and business aviation in supporting these targets.
As civil air traffic is predicted to double by the year 2030, our industry has strived to improve the quality and safety of air travel, while minimizing its environmental impact. Over the last several decades, perhaps no industry has done more to improve its environmental performance than the aerospace industry. In the last 40 years, the fuel efficiency of jet aircraft has improved by 70 percent, while the aircraft themselves have become 90 percent quieter.
Also, no other industry segment has set such high emissions reduction targets; the Aviation Carbon-Neutral Growth (CNG2020) Strategy includes improving fuel efficiency by 1.5% in 2020, capping aircraft emissions by 2020, and halving emissions by the year 2050 (based on 2005).
AIA, through ICCAIA, has worked in partnership with industry, non-governmental organizations, and member states, under the International Civil Aviation Organization (ICAO) to develop a meaningful CO2 standard for new civil aviation aircraft. Manufacturers’ technological improvements, along with air traffic modernization and enhanced operational procedures will aid in accomplishing these targets. Also under ICAO, experts are working to develop a global market-based measure for aviation. Both the global market-based measure and the CO2 standard are slated for ICAO sign-off in the year 2016.
Developing sustainable alternative fuels is also an integral part of the carbon neutral growth strategy. Along with our industry colleagues, we will assist in the U.S. government’s goal of producing one billion gallons of alternative jet fuel by 2018.
During this summer’s Farnborough International Air Show (July 14-20), AIA and its member companies provided a useful platform for dialogue between U.S. industry, key U.S. government officials and current and prospective international customers.
On the show’s opening day, Secretary of the Air Force Deborah Lee James was the featured speaker at AIA’s Executive Committee meeting. Secretary James' “Bending the Cost Curve” remarks addressed Air Force efforts to streamline the requirements development and contract awards process. James also emphasized her service’s commitment to exportability and a “Team USA” approach in advocating for U.S. products in international markets.
Frank Kendall, the Under Secretary of Defense for Acquisition, Technology and Logistics, spoke to industry representatives at AIA’s chalet the following day, addressing the ongoing impacts of sequestration, the need to strengthen the industrial base, and the rollout of "Better Buying Power 3.0."
An AIA-sponsored session on the importance of international aerospace trade and the Export-Import Bank of the United States (Ex-Im), featured a spirited discussion about the criticality of aerospace exports to the U.S. economy. This discussion was led by Washington State Governor Jay Inslee, Indiana Governor Mike Pence, Ex-Im Chairman and President Fred P. Hochberg, and Deputy Under Secretary of Commerce for International Trade Ken Hyatt. During the show, AIA also hosted several other forums and media briefings on international trade, space cooperation, and export control reform.
Another Farnborough highlight was the AIA’s U.S. Grand Reception, featuring remarks by Secretary James, Under Secretary Kendall, AIA President and CEO Marion C. Blakey, and several member company CEOs. Festivities were also held at the U.S. Ambassador’s residence, where Ambassador Matthew W. Barzun hosted U.S. industry representatives, AIA and other government officials. In welcoming the attendees, Ambassador Barzun emphasized the long-standing security ties between the U.S. and Great Britain that form the foundation for our nations' “special relationship.”
During the air show, AIA supported a robust U.S. DOD aircraft corral displaying a variety of U.S. military aircraft and equipment. Featured in the corral were a F-15E Strike Eagle, F-16 Viper, F/A-18 Hornet, UH-60D Black Hawk and a P-8 Poseidon. Both the P-8 and the F/A-18 participated in the daily flying displays. In addition, AIA partnered with Lockheed Martin and Pratt and Whitney to display full-scale mock-ups of the F-35 Lightning II and a Pratt and Whitney F135 engine. AIA also assisted in arranging a pre-show flight on the P-8 Poseidon for Ambassador Barzun and senior U.S. military and government officials.
Farnborough 2014 showcased how U.S. industry and government can work together to advance U.S. national security and economic interests by engaging with international partners and advocating for U.S. solutions in the global marketplace. AIA looks forward to future opportunities to partner with the U.S. government at upcoming trade shows and continuing to assist the government in developing the “Team USA” approach to international trade advocacy.
AIA thanks the U.S. Embassy in London, the Defense Security Cooperation Agency, and other U.S. government agencies who assisted in the planning and preparation for U.S. participation at the air show. We also appreciate our Platinum sponsors, The Boeing Company, Lockheed Martin Corporation and Raytheon Company, for their continued support of the U.S. DOD corral and AIA events at international shows. Thanks are also extended to AIA member companies Cobham, Celestica, GE Aviation, L-3 Communications, Pratt and Whitney, and Sikorsky for support of the U.S. DOD corral and AIA receptions during the air show.
AIA has issued a strong response to the House and Senate Armed Services Committee’s leadership request for industry ideas to reform defense acquisition and procurement policies. AIA’s inputs, linked here, provide specific and actionable ideas for improving the defense acquisition system to better meet the needs of the war-fighter and the taxpayer.
AIA’s letter to the committee’s leaders listed two major findings:
First, the Department of Defense (DOD) must change how it acquires weapon systems and services. There is growing consensus among DOD leadership, Congress and industry that it’s time to revise the overly complex and burdensome system that drives unnecessary cost into programs, and may soon make them unaffordable under declining defense budgets.
Second, the current acquisition system should be updated to enable more responsive and efficient outcomes. AIA urged Congress to bring the acquisition system into balance, starting with these core principles:
AIA’s response also listed four specific reform recommendations for DOD to do the following:
AIA’s recommendations for reforming defense acquisition and procurement policies were also featured on Washington D.C.-based Federal News Radio. On Jared Serbu's show “In-Depth,” AIA’s Betsy Schmid, VP of National Security and Acquisition Policy and M.J. Mitchell, AIA's managing assistant VP for National Security and Acquisition Policy, explained AIA’s approach to acquisition reform. For a full recording of the interview, click here.
On June 25, the House Aerospace Caucus hosted a reception tied to the release of AIA’s latest report, “The New American Space Age: A Progress Report on Human Space Flight.” The event also featured a lively panel of young aerospace professionals who told how their career choices and professional development were influenced by their interest in America’s space program.
Before a standing-room only audience, Frank Slazer, AIA's Vice President of Space Systems, presented an overview of AIA’s report, which details the exploration objectives NASA can achieve with a new generation of spacecraft and launch vehicles. Slazer then introduced the panelists, who all work on programs featured in the report—including the Orion Multi-Purpose Crew Vehicle, the Space Launch System, Commercial Orbital Transportation Services, and NASA's Commercial Crew Program. Lockheed Martin's Heather McKay, Brian Ippolitto from Marotta Controls, Zachary Krevor of Sierra Nevada Corporation and Boeing's Juan (Tony) Castilleja, Jr. shared personal perspectives which demonstrated the degree to which young professionals can have a major impact today in carrying the space program forward.
House Aerospace Caucus Co-Chairs, Representatives Pete Olson (R-TX) and Donna F. Edwards (D-MD) sponsored the event. Congressman Olson, who early in his career was a U.S. Navy Pilot, and Congressman Edwards, who worked as a Lockheed engineer right after college, celebrated the contributions of young professionals in their remarks. The final speaker, two-time Space Shuttle astronaut Gregory H. Johnson (Colonel, USAF, Ret.), now the leader of the Center for the Advancement of Science in Space (CASIS), addressed the tremendous research opportunities that now exist on the International Space Station.
Recognition by the Secretary of Commerce, an award to a longstanding congressional champion of the aerospace and defense industry, and high-level discussions of the need for greater national investment in air power and the NextGen air transportation system were among the highlights of this year’s National Aerospace Week.
Held annually the third week of September, National Aerospace Week was formally recognized five years ago by Congress in order to salute “the contributions of the aerospace industry to the history, economy, security and educational system of the United States.”
Secretary of Commerce Penny Pritzker noted the week's fifth anniversary in a public statement, applauding our industry for leading the world in aerospace innovation “and helping to protect American service members in every part of the globe.” Pritzker underscored the importance of aerospace and defense exports to the Administration’s export promotion strategy and said, “We look forward to working with the aerospace industry to continue this strong export growth and to expand on opportunities in global markets in which 95 percent of the customers reside.”
Congressman Hal Rogers (R-Ky.), the chairman of the House Appropriations Committee and a long time supporter of our industry was honored with AIA’s Wings of Liberty Award at a reception hosted by AIA President & CEO Marion C. Blakey and the members of AIA’s Executive Committee. AIA's most prestigious award is given annually during National Aerospace Week to a member of Congress who has made significant contributions to the strength of the U.S. aerospace and defense community. In highlighting Rogers’ three decades of congressional service, Blakey noted his steadfast support for national defense, measures he initiated to improve transportation and homeland security after 9/11, and his advocacy for a strong space program. AIA Executive Committee Chairman Michael Strianese, the Chairman, President & CEO of L-3, presented the award to Rogers, applauding his effectiveness as Appropriations Chairman in "proposing and gaining broader approval of budgets that meet our nation’s needs to invest in national security, in research and innovation.”
Left to right: Robert Weiss, Executive Vice President & GM, Lockheed Martin Aeronautics Advanced Development Program; Mick Maurer, President Sikorsky Aircraft Corporation; Christopher Jones, Corporate Vice President and President, Northrop Grumman Technical Services; Darryl Davis, President, Phantom Works, The Boeing Company; and Marion Blakey, President and CEO, Aerospace Industries Association during Air Force Association panel discussion on the constrained budget environment.
Moderating a panel titled “Adapting to a Budget Constrained Environment” at the Air Force Association’s Air and Space Conference and Technology Exposition, Blakey warned that given the “unprecedented increase in global threats, the current budget status quo is unacceptable.” She encouraged audience members to consider joining AIA’s Second to None Coalition that provides a platform for advocates of increased defense funding.
Panel member Darryl Davis, the President of Boeing Defense, Space & Security’s Phantom Works, emphasized the need for industry to leverage technology developments “occurring on a global scale,” in order to help America’s military keep our technological advantage during this period of constrained budgets. Christopher Jones, Corporate VP and President of Northrop Grumman Technical Services, said as a result of declining budgets there is a greater level of collaboration and communication between government and industry on technology development and he applauded the Air Force leadership's willingness to reach out to industry. Mick Maurer the President of Sikorsky Aircraft Corp. encouraged the Air Force to work with industry to “appropriately value” the intellectual property derived from company investments in new technology. And Robert Weiss, the Executive VP and GM of Lockheed Martin’s Advanced Development Program, emphasized the importance of industry being able to understand the Air Forces’ technology requirements especially for technologies that are over the horizon “so we can target our investments appropriately.”
Blakey also moderated a panel on the future of the NextGen air transportation system, held during the Annual Public Meeting of the NextGen Institute. In her opening remarks, Blakey observed that the skies of 2025 will likely be radically different than those of today’s due to the impact of NextGen transformational technologies, expected unmanned aircraft systems integration, and the advent of routine commercial space operations.
NextGen panel member Lillian Ryals, the Director, Senior VP and General Manager of MITRE’s Center for Advanced Aviation System Development, stated that upon completion of NextGen’s foundational programs, a “critical next step” will be to provide decision support equipment that will allow pilots to “take advantage of current equipage and new procedures.” Ryals added that efforts to maximize use of NextGen “aircraft systems with ground systems will be the key to taking massive advantage of the national air space infrastructure.”
Pete Bunce, the President & CEO of the General Aviation Manufacturers Association, emphasized the importance of FAA’s 2020 NextGen mandate that all aircraft operating in most controlled airspace be equipped with technology systems capable of broadcasting continuous, precise positional information to ground stations and other aircraft. “We cannot afford as a nation to say we are going to do it and then don’t do it,” said Bunce.
“The mandate is real. Prices will go up if everyone waits until 2019 to install equipment.” Dr. Jaiwon Shin, NASA’s Associate Administrator for Aeronautics Research, described his agency’s effort to develop technologies that will enable small unmanned aircraft systems (UAS) to operate at 500 feet and below in the national air space system. While Shin noted it is “a challenge to ensure safety and efficient management at low altitude,” he observed that NASA brings a lot to the table with respect to its research on autonomous systems. And Nancy Graham, Director, of the International Civil Aviation Organization’s Air Navigation Bureau, observed that a critical challenge for aviation will be to develop the human capital to go along with the new NextGen technologies. Graham noted there is a global shortage of pilots, and of aviation maintenance and engineering professionals that needs to be addressed.
Rep. Harold “Hal” Rogers (R-Ky.), was awarded the prestigious Wings of Liberty Award Thursday, September 18. The award recognises his longtime support of the aerospace and defense industry.
Statement by Aerospace Industries Association President and CEO Marion C. Blakey commending passage of the FY2015 Continuing Resolution which will keep the government operating through December 11, 2014
Arlington, Va. – Today, the Aerospace Industries Association praises the strong bipartisan passage of the Continuing Appropriations Act, 2015, a Continuing Resolution (CR) which will keep the government running until December 11th.
While this short-term measure is important, we strongly encourage Congress to come together after the elections to negotiate an omnibus appropriations bill to fund the entire federal government and not pass another CR. Without these appropriations bills, the federal government must live off last years’ budgets and under significant restrictions. Our industry could not function under those constraints and neither should the civilian workforce and the men and women who wear our nation’s uniform every day. Our industry and economy also suffer since CRs do not allow new programs to get started, production quantities to increase beyond the prior year level, or contain authority to enter into cost-saving multi-year contracts.
While Congress has also reauthorized the Export-Import (Ex-Im) Bank for a nine month extension, the hard work remains. U.S. manufacturers – along with their robust workforce – deserve to compete on a level playing field against our foreign competitors who are trying to take America's jobs. A long term extension of the Ex-Im Bank would provide much needed certainty to an industry that plays a critical role in both our national and economic security.
Left to Right: Marion C. Blakey, President and CEO, AIA, Rep. Harold "Hal" Rogers, Michael Strianese, AIA Chairman, and Chairman, President & Chief Executive Officer, L-3 Communications
Arlington, Va. — The Aerospace Industries Association is presenting its prestigious Wings of Liberty Award September 18 to Rep. Harold “Hal” Rogers (R-Ky.), in recognition of his longtime support of the aerospace and defense industry.
Rep. Rogers is Chairman and a 30-year member of the House Appropriations Committee, which is responsible for oversight and passage of the annual appropriation bills that provide over $1 trillion annually to the federal government. Rogers has served on the Defense subcomittee, and as chairman of the Transportation, Commerce, Science, Justice and the Homeland Security subcommittees. During his tenure in office, he has been a strong advocate for national and homeland security, civil aviation and space programs.
“The Wings of Liberty is our industry’s highest award,” said AIA President and CEO Marion C. Blakey. “It is an honor to present it to Congressman Rogers who has been a tremendous leader of our cause and richly deserving of this year’s award. Through his leadership of Appropriations, he has served the House with great distinction and has always put national security first.”
In response to receiving the Wings of Liberty Award, Rep. Rogers, said, “I am honored to receive the Wings of Liberty award from the Aerospace Industries Association. Our nation is recognized as the global leader in defense systems and aerospace engineering due to the daily work of the innovative members of this industry. At a time when terrorist groups are growing in number and boldness around the world, we must continue to maintain the very best national defense efforts, which are heavily supported through aerospace technology. I commend the continued ingenuity and leadership of AIA, allowing this nation to be on the forefront of defense, air travel, and communication.”
The Wings of Liberty award is presented annually to a member of Congress who has made significant contributions to help bolster aerospace and national defense. The award, which embodies the spirit of America and the drive to achieve any dream, will be made at a reception on Capitol Hill, one of several events celebrating National Aerospace Week. Past honorees include Senator Barbara Mikulski (D-Md.), Rep. Howard P. “Buck” McKeon (R-Calif.), Senator Patty Murray (D-Wash.), Rep. Norm Dicks (D-Wash.), and Senator Daniel K. Inouye (D-Hawaii).
Secretary of Commerce Penny Pritzker applauds the fifth anniversary of National Aerospace Week and recognizes the significant contributions our industry makes to both U.S. national security and the economy.
Even though Congress has mandated a deadline in 2015 for integrating unmanned aircraft systems (UAS) into U.S. airspace, that deadline will probably not be met. However, increasing attention from many sources outside the U.S. Federal Aviation Administration (FAA) is focused on how safety concerns will be addressed.
Typically, the safety conversation boils down to how to avoid collisions between conventionally piloted aircraft and UAS, and UAS crash landings. That’s a fair departure point for thoughtful discourse, but as someone who had responsibility for safety at the U.S. National Transportation Safety Board and the FAA, I believe we need to consider the broader picture. UAS have tremendous life-saving potential when lost people need to be found; when wildfires develop; when tornadoes hit; and when power lines, oil rigs and bridges need close inspection. Almost every day, there is news of a new idea about how to gain valuable social benefits from this technology without having to put humans in dangerous positions. We need to balance our safety concerns about UAS with the safety gains we can realize from those operations.
Achieving that balanced approach to UAS regulation means recognizing the need for prudent first steps to get a number of these systems into the airspace. In addition to the immediate benefits, we can obtain useful operational data that will help us enhance UAS safety and allow this industry to develop and grow. Dragging our feet on developing a rational regulatory regime that provides clarity for the public, hobbyists and more sophisticated UAS developers and users will stifle innovation, delay the safety improvements that come with operational experience and postpone the benefits this technology promises. We will also see an increase in flights by those who fly UAS illegally, ignoring the FAA’s restrictions and potentially creating unsafe conditions.
In developing new regulations, the entire UAS community — government and industry alike — must also take on the challenge of informing and educating the public about how real safety risks are being addressed and mitigated. A recent Washington Post report, for instance, erroneously used examples of selective and outdated military UAS accidents in hazardous flying conditions to paint a dire picture of what problems might be engendered by UAS activities in the domestic airspace. That kind of sensational journalism doesn’t promote the clear-eyed and rational discussion we should have on regulating UAS.
Currently, we have an unstable regulatory environment, with only a handful of licensed operators, plus those who are exempt because they are in the hobbyist category. Without clear guidance, this is a recipe for trouble until the FAA publishes its small UAS proposed rule and moves on to other UAS categories. And while we appreciate the technical expertise that is going into the development of new regulations, we believe the Obama administration needs to designate an official who will take a more global policy approach to safety but one expeditiously deriving the potential benefits of widespread UAS applications.
On the positive side, the FAA’s Small Unmanned Aircraft System Aviation Rulemaking Committee has proposed a smart step-by-step approach to full UAS integration. The FAA’s six designated test sites will help us obtain valuable data to enhance the safety of UAS technical systems and to pinpoint potential safety issues. And the recent action by the FAA to entertain license exemptions for filmmakers prior to the issuance of the small UAS rule is a welcome step. AIA supported the applications for those exemptions through a joint letter with the Motion Picture Association of America to FAA Administrator Michael Huerta. Furthering progress requires us to keep taking these kinds of steps.
We should not forget that there’s a global competition ongoing to develop UAS applications. A decade after the Wright brothers flew, the United States found that it was lagging far behind European aviation capabilities and had to make a concerted effort to catch up. For the sake of the U.S. economy and society, that historic mistake should not be repeated by needlessly slowing the safety regulatory process for UAS.
Although the end of summer indicates the beginning of classes for students across the country, it also signals the kickoff of the world's largest annual student rocketry contest. Registration for the Team America Rocketry Challenge (TARC) is now open for teams of 7-12th grade students through December 12.
TARC is the U.S. aerospace and defense industry’s flagship program designed to encourage students to pursue study and careers in science, technology, engineering and math (STEM). Structured to emulate the aerospace industry's design, fabrication and testing process, TARC requires teams to build and fly a model rocket that meets challenging design requirements and precise targets for altitude and flight duration.
Each year, TARC's rules and scoring parameters change to challenge the students' ingenuity and encourage a fresh approach to rocket design. This year's rules require teams to build and launch a rocket carrying a raw egg to 800 feet and return it to Earth uncracked within a flight duration of 46 to 48 seconds. A new requirement this year calls for the rocket to separate during flight, safely returning the motor and the egg to the ground detached from one another in separate segments of the rocket.
The 100 top-scoring teams from across the country will be invited to compete in the National Finals in Washington D.C. next spring. The winners will then represent America in the International Rocketry Challenge, competing against student teams from the United Kingdom and France at the Paris Air Show next June.
The Aerospace Industries Association and the National Association of Rocketry (NAR) sponsor the annual competition in partnership with NASA, the Department of Defense, the American Association of Physics Teachers and a number of AIA member companies. For additional information on TARC and complete competition results, please visit www.rocketcontest.org.
AIA's gold trophy for best overall association website design presented by the Hermes Creative Awards.
AIA was recently honored by the Hermes Creative Awards for best overall association website design and awarded gold for its efforts.
This project was led by AIA’s manager of communications, Adam Kostecki, who worked with Matrix Group International to successfully complete this project by developing a visually stunning website that focuses on the central issues to AIA and the aerospace and defense industry.
“Our goal was to ensure that we highlighted the association’s core missions being pursued on behalf of our members,” recalled Adam Kostecki. “We worked hard to keep our stakeholders in mind throughout the project and I think we successfully achieved our goal.”
The website was launched in late 2013 and is helping to ensure that the association is able to continue to provide outstanding support to its members, partners and stakeholders. AIA is now capable of better advocating for the broader interests of a diverse industry with a website that provides users with a unique and easily navigable experience making it easy for visitors to quickly find what they are looking for.
The Hermes Creative Awards is an international competition for creative professionals involved in the concept, writing and design of traditional materials and programs, and emerging technologies. The awards are administered and judged by the Association of Marketing and Communication Professionals. The international organization consists of several thousand marketing, communication, advertising, public relations, media production, web and free-lance professionals. The competition has grown to one of the largest of its kind in the world. A look at the winners shows a range in size from individual communicators to media conglomerates and Fortune 500 companies.
Aerospace Industries Association President and CEO Marion Blakey accepted the ALS Ice Bucket Challenge today from Capt. Lee Moak of the Air Line Pilots Association and made a personal donation of $1,000 to further support the effort to end ALS.
Her challenge went out to Delta Air Lines CEO Richard Anderson and their head of government relations Andrea Newman, along with Club for Growth’s president Chris Chocola, and the Export-Import Bank’s chairman and president Fred Hochberg - you have 24 hours.
For more information on how you can help fight ALS, click here: http://www.alsa.org/fight-als/ice-bucket-challenge.html
Please join us for National Aerospace Week the third week in September! We would like to invite your organization to join us in recognizing the enduring value of America’s aerospace and defense industry.
Deloitte has just completed their annual aerospace and defense sector financial performace study looking at the top 100 A&D companies’ in 2013. The key financial indicators studied include sales revenue, operating earnings, and operating margin. The results reveal key trends in the global A&D market.
The Aerospace Industries Association is seeking a Corporate Events and Marketing Manager. The candidate will report directly to the Director, Corporate Events and is responsible for helping to manage the planning, marketing and execution of multiple association events. This is a full time position located in Arlington, VA.
The ideal candidate must demonstrate the ability to multi-task; be responsive to the needs of the membership, providing all the members with outstanding customer service; be exceptionally organized and have the ability to prioritize, with the flexibility to shift work and priorities, as needed. Must be a pro-active and creative thinker; a problem solver with the ability to “think on your feet.” Must be comfortable dealing with C-suite executives.
Responsibilities include, but are not limited to, the following items:
Event Management and Marketing:
Manage event registration process through Cvent, including onsite registrations, to assure accurate registration data, name badges, fee collection, attendee lists, counts for specific events and meals, etc.
Work with Director to create online surveys to evaluate each meeting and event; gather and disseminate the results received.
Help manage the events on-site and provide superior customer service to AIA members.
Provide follow up to the events such as thank you letters to speakers and sponsors, as needed.
Assist in management of all special activities held in conjunction with events including golf outings, spouse events, etc.
Assist in the design, development, and execution of marketing and outreach strategies under the direction of the Director of Events.
Write, review, edit, and maintain collateral materials with the most recent data for program booklets.
Contribute to and continuously improve the information of all corporate events on AIA's website.
Negotiate vendor contracts, such as audio visual, transportation, entertainment, etc.
Monitor hotel room reservations for all the members of the Executive Committee for Spring and Fall Board of Governors Meetings and Supplier Management Council Meetings.
Manage food and beverage, as outlined on BEOs, to confirm that all meals and room setups are correct.
Manage and track speakers’ requirements, i.e. transportation, hotel rooms, food allergies, AV, presentations, etc.
Manage all hotel reservations at Williamsburg Inn for Spring Board of Governors Meeting.
Management and Finance:
Must have the ability and skill to manage multiple events simultaneously with attendees numbering from 16 to 1,600.
Manage meeting/event planning for bi-annual Board of Governors & Membership Meetings, three Supplier Management Council Meetings a year, four Executive Committee Meetings and one international air show each year.
Work with Director, Corporate Events to monitor budgets to ensure revenue and expenses are kept within established boundaries. Review financial information for accuracy, such as invoices for services and materials; the hotel invoice, subcontractor invoices, etc.
Ability to identify and execute on opportunities for increased efficiencies and cost savings.
Featured this quarter in the Executive Report: A message from Marion Blakey about the new Second to None Coalition; Q&A with NDD United; AIA's new digital 3D standards, and the Team America Rocketry Challenge's accomplishments for women in STEM.
The Export-Import Bank has, for more than 80 years, stood as a bipartisan institution that has fueled economic growth in the U.S. by helping businesses export goods globally. In 2013, the Bank earned $1.1 billion dollars for American taxpayers, supported more than $37 billion of U.S. exports, and maintained 205,000 American jobs.
Even as the Bank’s benefits are clearly defined, certain elected officials still stand in the way of American growth and seek to impede the success of small businesses. It is past time that these elected officials wakeup to the need for the Bank and support its reauthorization.
That is why AIA is dedicated to supporting the businesses in our industry that utilize the Bank and to spread the word about the need to reauthorize the Bank. We do encourage you to take action to support the bank which is why we have included all of our resources below along with a link for you to write to you elected officials to urge their support.
TAKE ACTION IMMEDIATELY TO SUPPORT EXPORT-IMPORT BANK's REAUTHORIZATION
Groups seek exemption for Astraeus Aerial to open economic opportunities for the motion picture and aviation industries
Statement by Aerospace Industries Association President and CEO Marion C. Blakey and Motion Picture Association of America, Inc. Chairman and CEO Senator Chris Dodd
Arlington, Va. — The Aerospace Industries Association and Motion Picture Association of America are urging the Federal Aviation Administration to support increasing the safe operation of small Unmanned Aircraft Systems (sUAS) in film productions.
In a letter to FAA administrator Michael Huerta, AIA President and Chief Executive Officer Marion C. Blakey and MPAA Chairman and Chief Executive Officer Senator Chris Dodd asked the agency to approve an exemption request by Astraeus Aerial to operate sUAS for movie and television productions. The exemption application details how licensed professionals can operate small, camera-equipped unmanned systems safely in U.S. airspace. A favorable approval also would widen opportunities for other, similar operators.
As the letter states, AIA and MPAA represent industries that support more than 2.5 million American jobs and produce more than $125 billion in annual exports. Once these and other exemptions are granted to permit sUAS operations for movie productions, both industries will benefit.
While recognizing the final FAA sUAS rules will not be issued as originally directed by Congress next month, AIA and MPAA urged the agency to remain on track to issue the sUAS Notice of Proposed Rulemaking in November to allow the period of public review and comment to begin.
“This country is the birthplace of the motion picture, television and aviation industries, and the United States has a significant technological advantage in this new frontier of aviation,” the letter stated. “This advantage, however, may be short-lived. Approving the film and television exemption requests expeditiously will help advance our nation’s global leadership in aviation by supplying the FAA with a case study and data that can expedite the successful integration of UAS into national airspace.”
In response to a request from Congress seeking input on ways to improve the defense acquisition system, AIA is leading the way with a new report that provides guidance on the best ways for the government to rebalance its purchasing power by lowering costs while safeguarding our industrial base.
WRITTEN REMARKS BY:
Marion C. Blakey, President and CEO
July 23, 2014
The Aerospace Industries Association (AIA) appreciates the opportunity to present our views on the state of domestic aircraft manufacturing in the United States and the challenges we face in maintaining that leadership position. AIA and our members are very proud of the fact that, today, there is no sector of our economy contributing more to U.S. net exports than commercial aviation manufacturing. And in our own country, sales in all sectors continue to climb even as we experience the highest safety record in the history of commercial aviation.
I am Marion Blakey, President and Chief Executive Officer of AIA, the nation’s largest trade association representing United States aerospace and defense manufacturers. Our 350 member companies represent an industry directly employing one million workers, and supporting another 2.5 million jobs either indirectly or as suppliers. Today I will discuss some of the challenges our industry faces in maintaining our manufacturing advantage in the face of stiff competition. But first, I'd like to highlight the prominent and increasing role of technological investment and innovation in aircraft manufacturing.
THE ROLE OF TECHNOLOGICAL INNOVATION
U. S. aircraft manufacturers continue to hold strong positions in the world market, in part because of the technological advances that are driving those markets. The Boeing Company estimates that, over the next twenty years, the world's fleet of aircraft will double, and 80 percent of those aircraft will involve non-U.S. purchasers. Right now, our industry exports $72 billion more than we import, a figure that leads all U. S. industries and one that continues to grow with worldwide demand.
U. S. exports of civil aircraft, engines, avionics, and related components are a sign of our strong industrial reputation throughout the world. It is a solid, well-earned reputation for safety, quality, and attention to detail. But it is also a testament to an industry that invests billions of dollars in research and development to remain competitive through the use of increasingly sophisticated technologies. Let me give you a few examples:
Innovative Materials.--To address customer concerns over historically high fuel prices, manufacturers continue to reduce aircraft weight through the use of advanced, lighter weight materials in wing structures, fan blades, fuselage sections, and other parts of the aircraft. For example, by weight about 50 percent of the Boeing 787 Dreamliner's airframe structure is comprised of composites. This compares to about 5 percent from designs of the 1960's. Manufacturers are using carbon and glass fiber composites, ceramic and metal matrix composites, titanium, and new alloys such as aluminum-lithium in a continuing search for
higher-strength, lighter weight materials.
Nanotechnology.—Increasingly, our industry is using a variety of nanotechnologies to improve aircraft durability and performance. These run the gamut from "nano coatings" on windows to reduce aerodynamic drag, advanced turbine blade coatings to provide greater durability, and new, "nano-filler" materials to reduce weight.
Engine Manufacturing.--Our engine manufacturers are breaking new ground to reduce engine weight and emissions while improving fuel efficiency. (And this comes from an industry that has already increased fuel efficiency by 20 percent over the past decade). For example, a number of our manufacturers are using "additive manufacturing", commonly referred to as "3D printing", to make engine parts. They are evaluating and developing different biofuels collaboratively through the Commercial Aviation Alternative Fuels Initiative (CAAFI). And they contribute, dollar-for-dollar, to the FAA's Continuous Low Energy, Emissions and Noise (CLEEN) program. The first phase of CLEEN developed certifiable aircraft technologies that will significantly reduce noise, emissions and fuel burn. To its credit, the FAA program requires industry to demonstrate a path to the commercial market, ensuring the technology benefits will be realized. These are developed to high technology readiness levels (TRL 6-7) to transition them quickly to aviation users.
Our industry today is an engine of national economic growth and innovation. However, aviation is a vibrant, global market that not only emboldens our existing competitors, but is certain to produce new competitors in the coming decades. To retain and strengthen our current leadership, the federal government must do its part. It must provide a streamlined regulatory environment, equitable financial support, international leadership, and government infrastructure for our industry to do what it does best -- innovate and compete. Let me discuss some of these challenges.
FAA's AIRCRAFT CERTIFICATION PROCESS
Product certification delays continue to be a main impediment to our manufacturers' global competitiveness. Recognizing this problem, the FAA launched nine years ago with industry support the Organization Designation Authorization (ODA). ODA creates an extension of the FAA itself within a company by defining an organization, its responsibilities and the associated processes it will follow to ensure compliance with regulations. In short, rather than focus on giving authority to individual experts, the ODA process approves designated organizations and their processes. The FAA then audits the organization’s execution and
compliance. Importantly, ODA does not reduce or diminish the FAA’s safety oversight responsibilities in any way. Rather, it makes more efficient the mechanisms by which the same level of assurance and protection of the flying public is achieved. This systems approach to oversight leverages FAA resources and critical technical knowledge within the manufacturers’ organizations, ensuring a continual two-way exchange of information between the regulator and manufacturer.
Unfortunately we have yet to achieve full benefits of the ODA, as the FAA’s culture at the working level has been slow to embrace this systems approach to certification. We urge the FAA to allow maximum use of delegation, not only to take full advantage of industry expertise, but to increase the collaboration and partnership that leads to improved aviation safety. We hope the Committee will recognize that this approach, when fully implemented, will enhance aviation safety, ensure full technical input into the certification process and allow FAA to focus its limited resources on critical areas of aviation safety.
The industry appreciates the strong support provided by this Committee for the reform of FAA's Aircraft Certification Service. Sections 312 and 313 of the FAA Modernization and Reform Act of 2012 helped jump-start a cultural change in FAA's regulatory system. We believe that FAA leadership is taking this initiative seriously and in line with Congressional intent. But cultural change is difficult. It has to permeate down to the lowest levels of the organization, take root there, and grow back up. The Section 312 Aviation Rulemaking Committee commissioned by Congress has recommended, and the FAA has accepted, a comprehensive change management plan that, if properly implemented, would transition its workforce to focus on a risk-based, systems safety approach for certification and oversight. Of critical importance over the coming year is the development of specific measures of effectiveness, the use of these measures to track progress toward a systems safety approach, and the extent to which FAA modifies its personnel expectations and training to
communicate these changes to the field.
Too many times, as technology changes, we are seeing the FAA's rules and rulemaking procedures unable to keep pace. Let me offer you one example. Several decades ago the FAA specified a requirement for engine manufacturers to put new engine designs through a 150-hour endurance test. These requirements were based on the piston engine technology that was predominant at that time -- in the 1960s. Unfortunately, the test requirements have not been updated to reflect modern technology, where engines are controlled by full authority digital engine control (FADEC) systems, and where huge strides have been made over the decades in engine reliability, safety and emissions. Our manufacturers make artificial, unnecessary changes to the engine's production configuration simply to run this test. And when the test is over, they spend time and resources to put the engine back into its normal state. The FAA has been working to update the fifty year old regulations for some time now, and they hope to have some improvements in place within the next year or two. But it is a
good example of how technology is outpacing FAA's ability to keep up in this field.
If up to 80% of future aircraft purchases are for markets outside the United States, that means our manufacturers will see an increasingly diverse mix of customers, each coming with unique requirements and design preferences. This will lead to workload growth at the FAA. And this growth will be in technological complexity as well as size, for the role of new materials, nanotechnologies, and automation continues to grow. The average age of FAA's safety inspector workforce (flight standards and certification) is 52 and almost 30 percent are currently eligible to retire. Although the agency plans a more aggressive recruitment of younger personnel into safety critical positions, for the past few years they have fallen short of their goal. The agency needs to ensure not only that its retiring workforce is replaced in an effective manner, but that all of its inspectors receive adequate in-service training to remain current on the products and technologies they are regulating. Although we believe the agency has a dedicated workforce today, we do not believe FAA can accommodate the growth and complexity in certification workload without effectively implementing the cultural change called for in the Section 312 ARC. We need this Committee's watchful eye to help to make that happen.
AIA also believes the agency needs to make stronger progress on implementing the findings of the Section 313 ARC, to ensure the consistency of regulatory interpretations and findings among FAA's field offices.
FAA AND INTERNATIONAL CERTIFICATION AUTHORITIES
Another issue that concerns us is the amount of duplicative work that our manufacturers endure when seeking approval of their products by foreign authorities. Today the United States is party to over 30 bilateral agreements that govern the procedures for approval of aviation products between FAA and other authorities including the European Aviation Safety Agency (EASA). These agreements take years to develop and are intended to leverage the capabilities of the exporting authority (the certifying authority), to eliminate unnecessary and duplicative work by the importing authority (the validating authority). The objective, of course, is to reduce duplication of effort - a critical element for reducing cost. As the ARC stated in its final report, "The efficiency of validation procedures and acceptance of FAA type certificated aerospace products is essential to the competitiveness of U. S. manufacturers".
Unfortunately, our manufacturers are increasingly going through what amounts to multiple certification processes, because overseas validating authorities are reducing their acceptance of FAA's work. As the ARC concluded, "there is an apparent trend of reduced global acceptance of U. S. FAA type certificated products . . . more and more countries are no longer accepting or recognizing U. S. FAA type certificated products as acceptable for import and are requiring a separate certification or validation by their own authorities". The cost of such efforts, including fees and charges for the extra work, can exceed several million dollars, and is a significant and unnecessary burden on U. S. manufacturers. FAA's global leadership and its collaboration with international partners are key elements of changing this unacceptable trend. Industry is eager to work with the FAA to improve the acceptance of FAA approved products globally and provide a seamless transfer across geographical boundaries.
EXPORT CREDIT FAIRNESS
For U. S. manufacturing to thrive, we must have a healthy export policy, because most of the world's consumers are beyond our borders. This is a simple fact that other nations recognize as well. That is why there are more than 60 export credit agencies established by governments around the globe. Our Export-Import ("Ex-Im") Bank is one of them. It is vital for the aerospace industry's global competitiveness, and its authorization to conduct business expires in less than ten weeks. The bank supports a wide variety of U. S. exports, including power turbines, locomotives, agricultural equipment, and satellites. But it should come as no surprise that our nation's largest export sector -- commercial aircraft -- also receives significant support from Ex-Im. Some of the Bank's opponents believe that wide body aircraft should not benefit from Ex-Im support -- even though thousands of U. S. workers owe their jobs to that very support, both directly and indirectly as suppliers. Such exclusions are not made by the three export import banks of Europe that enable the sale of European
wide-body aircraft to the world’s airlines. Nor should our own government unilaterally impose such restrictions on the financing of U.S. manufactured airplanes. Equally important, the employees of our general aviation manufacturers have jobs because of Ex-Im. Statistics from the General Aviation Manufacturers Association indicate that more than 50 percent of the revenue of U. S. general aviation manufacturers in 2013 was derived from exports. A decade earlier, that figure was only 20 percent. Why should we unilaterally disarm and watch those jobs go overseas to workers in other nations?
Earlier this year, I participated at an Ex-Im event at the Gulfstream Aerospace plant in Savannah, Georgia. Ex-Im has now provided over $1 billion in support to our general aviation manufacturers, including Gulfstream. And when you look those workers squarely in the eye, you know this is important, not only for their families, but for our nation. If Congress fails to reauthorize the continued operations of the Export-Import Bank before
September 30, 2014, there will be fewer workers like those at the Gulfstream plant, and more at the plants of our foreign competitors. It is as simple as that.
THE ROLE OF NEXTGEN AND DOMESTIC AIRSPACE
Our industry also benefits from increased domestic air travel in the United States, the world's largest market. And that market continues to grow. Last year, there were 826 million passengers in U. S. airspace. This is the second highest level in history, and the highest since the economic recession of 2007. The average load factor on our nation's airlines last year was more than 83 percent, the highest on record.
However, air travel within the United States is concentrated among a relatively small number of airports and within a small number of peak periods, presenting serious capacity challenges for our nation's air traffic control system. According to the FAA, about 70 percent of all commercial passengers are concentrated at the nation's top 30 airports. Furthermore, FAA projects that the number of U. S. airline passengers will increase over the next few years from 826 million today to over 1.3 billion. This will require, among other things, more civil aircraft.
U. S. manufacturers look forward to providing these additional aircraft and the engines, avionics and components that go into them. But if FAA's air traffic control infrastructure is not improved, those passengers will not materialize, and our economy will be held back. That is the purpose of NextGen, to provide the capacity needed to handle this future growth while maintaining or improving upon today’s level of safety.
AIA appreciates the near-term financial relief for fiscal years 2014 and 2015 that Congress provided in the Bipartisan Budget Act of 2013. However, when sequestration returns in fiscal year 2016, we urge Congress to make sure the NextGen program is adequately funded. Deputy FAA Administrator Michael Whitaker testified recently before the Senate that NextGen needs approximately $1 billion a year. Current funding is closer to $850 million, and there are concerns it could be cut even further. In fact, the FAA's NextGen budget request for the coming year is $200 million below the request of only two years ago. If the FAA is constantly hamstrung by budget cuts, the system capacity improvements from NextGen will suffer the most. Future travelers paying user fees into the Airport and Airway Trust Fund have a right to expect a modern, satellite-based system that gets them to their destination safely and usually on time. If the projected level of air travel is to materialize, we will need continued investment in a twenty-first century air traffic control infrastructure.
UNMANNED AIRCRAFT SYSTEMS
Unmanned aircraft systems (UAS) represent the newest frontier in the world of aviation, and they promise to both disrupt and transform many of our current ways of doing business. They will create new avenues for our economy by performing jobs that are too "dull, dirty or dangerous" to be performed today. They will change for the better the way we respond to natural disasters, search for missing persons, and fight wildfires. And we appreciate the leadership of Congress in getting us to where we are today in the process of integrating unmanned aircraft into our airspace.
FAA has taken the initial steps on UAS integration, but much more needs to be done. For example, the agency needs to ensure that the development of equipment and operator standards remains on schedule and that the proposed rule for small UAS does not fall farther behind. They need to ensure that ATC automation platforms are modified with appropriate software so the system is ready when the regulations are finalized. And they need to ensure the program has adequate budgetary resources to meet Congressional intent. We see a lot of dots, but more needs to be done to connect them into a coherent picture.
GLOBALLY COMPETITIVE TAX POLICY
The Research and Experimentation Tax Credit (commonly called “R&D Tax Credit”) is an important incentive for national business investment in R&D. This is important for many sectors of our economy, but it is especially important for high-tech companies in the aerospace sector. The innovations I previously described, including activities that improve aviation safety, are strongly fostered and supported by our R&D Tax Credit. Unfortunately, the credit was allowed to expire at the end of last year, a political football caught up in the broader discussion of comprehensive tax reform.
U. S. commercial aerospace manufacturers are at a substantial disadvantage vis-à-vis foreign competitors whose home countries almost universally have more favorable and more predictable R&D tax credits. A permanent R&D credit was proposed by the Administration and has already passed the House. We hope you will urge your Senate colleagues to act favorably on these proposals either separately or as part of comprehensive tax reform legislation. At a minimum, legislation is urgently needed to restart the R&D tax credit and apply its provisions retroactively to the beginning of calendar year 2014.
MAINTAINING A SKILLED AEROSPACE WORKFORCE
With a global market that is growing rapidly, and with the pace of technological innovation increasing, we must maintain an adequate supply of aerospace workers with degrees in science, technology, engineering and math (STEM) disciplines and job-specific manufacturing skills.
Unfortunately, today the United States is simply not producing enough workers with the right technical skills. The U. S. graduates around 300,000 students a year with bachelors or associate degrees in STEM fields. The February 2012 report of the President’s Council of Advisors on Science and Technology (PCAST) said this figure falls short of our economic need by one-third. Today, less than 40% of students who start college intending to earn a STEM degree actually complete the degree requirements. And we should not keep our sole focus on four year degrees, for community colleges and career technical education play equally important roles. In fact, one-third of our current STEM employees began their education in community colleges.
Our STEM workforce challenge is exacerbated by the fact that the aerospace industry is, in a word, graying. In 2007, we found that almost 60 percent of the U.S. aerospace workforce was age 45 or older. Today, 9.6 percent of our industry is eligible to retire, and projections are that by 2017 -- just three years from now -- 18.5% of the entire industry will be eligible to retire. At our largest corporations (those employing 100,000 or more), the percentage of the retirement eligible workforce is already 18.6 percent. We are experiencing a shortage of STEM workers today, but the problem will be even greater when the bow wave of actual retirement hits us in the next couple of years. How will we keep these jobs in the U. S. if we cannot find and train enough workers? That is a real concern of many in our industry looking to the future.
I would also like to take a moment to comment on the continuing importance of international Open Skies agreements. For more than 20 years, Open Skies agreements have transformed today’s commercial aviation sector. The broad base of support in the U.S.—in Government and among its many stakeholders—has made it possible for the United States to negotiate agreements with over 110 countries. Today, more than 240 different airlines operate around the globe, carrying more than 3.1 billion passengers last year. Open Skies have created healthy competition in the marketplace, bringing new entrants to the fold, lower fares for consumers, and economic prosperity to airports and their communities around the country. Moreover, these new markets have created a need for new aircraft technologies like Boeing’s 787 and 777X which enable
passengers to travel longer distances in greater comfort. Open Skies agreements have created opportunities for the development and deployment of new technologies and new markets for U.S.-manufactured airplanes and services.
In conclusion, we believe that U. S. aviation manufacturers are in a strong competitive position today, but there are risks to our maintaining this position over the next decade. It is important for the Federal Government to provide the underlying policies that allow us to compete internationally and to grow our domestic air travel here at home. This includes export financing, workforce, and tax policies that are competitive with the policies of other nations, and that allow us to maintain jobs here in the United States. It includes a new infrastructure in air traffic control technology that grows and ensures the safety of our domestic airspace. It includes partnerships in technology programs like CLEEN, and in promoting the next frontier of aviation -- unmanned aircraft.
Thank you for the opportunity to appear today, and I look forward to your questions.
Creekview High School students took home silver in the seventh annual International Rocketry Challenge at the Farnborough International Air Show (Photo Credit: Raytheon).
AIA's President and CEO, Marion C. Blakey, in a recent letter to both chambers of Congress, made a strong case for the reautorization of the Export-Import Bank of the U.S.
We know that not reautorizing hte bank would be equivilent economic unilateral disarmament agains nearly 60 other foreign credit agencies. We hope you will join with us to support the Ex-Im Bank to sustain the American economy and U.S. jobs.
Sign the Petition
Raytheon-sponsored team from Canton, Ga., wins second place in student rocketry challenge at the Farnborough International Air Show
LONDON – Five students from Creekview High School of Canton, Ga.,took home silver medals in the seventh annual International Rocketry Challenge at the Farnborough International Air Show.The U.S. team, sponsored by Raytheon (NYSE: RTN), won second place, while the French team captured first and the U.K. team took third.
Competing teams designed, built and launched rockets with a goal of reaching an altitude of exactly 825 feet during a 48- to 50-second flight window. The payload, two raw hen eggs, had to return to the ground undamaged using two identical parachutes. Scores are determined by how close teams come to the required height and time; cracked eggs disqualify the flight.
The U.S. team in red flanked by the teams from France, Japan and Great Britain.
The five-member team representing the United States consists of Amanda Semler, 18; Andrew White, 16; Nick Dimos, 16; Austin Bralick, 16; and Bailey Robertson, 15. The team posted the top flight score of 9.88 and was just nine feet shy of the target altitude. The team from France posted the next highest flight score of 448.32 followed by the UK team with a flight score of 715.2.
The students also gave a presentation on their rocket design to a panel of international judges at Raytheon’s air show headquarters. The judges’ score counted for 40 percent of their total score.
“I had a great time being out here with all of the other people from different countries and meeting other people with similar interests,” said Team Captain Amanda Semler.“I hope it will inspire other women to get into the industry and reach their dreams.”
The International Rocketry Challenge is the culmination of three separate competitions held annually around the globe: the Team America Rocketry Challenge (TARC) sponsored by the Aerospace Industries Association of America (AIA); the United Kingdom Aerospace Youth Rocketry Challenge (UKAYRoC) sponsored by ADS, the UK Aerospace, Defense, Security and Space association; and the French Rocketry Challenge sponsored by Groupement des Industries FrancaisesAeronautiques et Spatiales, the French aerospace industries association. Each contest brings together teams of middle and high school students to design, build and launch model rockets with the goal of inspiring young minds to become engaged in science, technology, engineering and math.
“The knowledge, discipline and commitment displayed by students to make it to this level of competition is extraordinary,” said Thomas A. Kennedy, CEO of Raytheon. “By celebrating student achievement on a global stage, Raytheon hopes to inspire more students to challenge themselves to share their knowledge and natural curiosity as they collaborate to uncover winning solutions.”
This is the ninth year that Raytheon has supported the U.S. team's trip to the international air show. The program is part of the company’s broad-based MathMovesU® initiative to encourage students to pursue careers in science, technology, engineering and math (STEM).
“The ingenuity and determination displayed today by the U.S. team is a powerful indicator that young Americans remain committed to excellence in STEM-related fields,” said AIA President and CEO Marion C. Blakey. “I am confident that students like these will continue to bolster America’s global leadership in aerospace for generations to come.”
Raytheon's MathMovesU® program is an initiative committed to increasing middle and elementary school students' interest in math and science education by engaging them in hands-on, interactive activities. The innovative programs of MathMovesU include the traveling interactive experience MathAlive!®; Raytheon's Sum of all Thrills™ experience at INNOVENTIONS at Epcot®, which showcases math in action as students design and experience their own thrill ride using math fundamentals; the In the Numbers game, a partnership with the New England Patriots on display at The Hall at Patriot Place presented by Raytheon; the company's ongoing sponsorship of the MATHCOUNTS® National Competition; and the MathMovesU scholarship and grant program. Follow MathMovesU and other Raytheon community outreach programs on Facebook and on Twitter @MathMovesU.
Raytheon Company, with 2013 sales of $24 billion and 63,000 employees worldwide, is a technology and innovation leader specializing in defense, security and civil markets throughout the world. With a history of innovation spanning 92 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as cyber security and a broad range of mission support services. Raytheon is headquartered in Waltham, Mass. For more about Raytheon, visit us at www.raytheon.com and follow us on Twitter @Raytheon.
Defense acquisition reform won’t happen overnight; it will require several months if not a year or more of down in the weeds work.
That’s the message we sent to Congress, in response to requests from the House and Senate Armed Services committees for ideas on how to improve the process. That analogy – in the weeds — is an apt one, considering the overgrowth of weedy rules and regulations that inhibits the ability of our procurement system to flourish.
But the situation is far from hopeless. AIA offered three principles for acquisition rebalancing: 1) optimize the use of scarce government resources; 2) allow industry the ability to execute more quickly and more efficiently; and 3) provide greater opportunities for industry to deliver the technologies, products and services our nation demands.
So what does that mean? To answer that question, we dug a little deeper, pointing to specific areas of reform. The first involves Department of Defense audits. The existing audit machine has added layers of complexity, adding time to complete audits, delaying contracts, impacting delivery schedules and key milestones as well as contract closeouts. This especially is onerous on smaller firms who need predictable revenue forecasts to support their operations and financial stability. We recommended that DOD make a greater effort to clear the audit backlog, reduce excessive documentation requirements, eliminate redundant audit and surveillance activity and focus auditors’ efforts on programs that are truly at risk.
Our second recommendation addressed the treatment of commercial items. Despite congressional direction and DOD policy expressing openness to using less expensive off-the-shelf commercial items that can leverage private investments in new products, the reality is the actual implementation of this policy is sorely lacking. The increased use by procurement officers of DOD unique or specific requirements stresses the supply chain and dissuades commercial suppliers from participating in the procurement system. Also, uneven interpretations of the definition of commercial items convert an otherwise straightforward commercial purchase as envisioned, into a lengthy DOD unique one. We maintain DOD should not impose rules, regulations and practices making it more difficult for the services to buy commercial items.
Our third recommendation concerns the need for the DOD to take a more active role in protecting company intellectual property rights. Appropriate IP protection will enable increased competition and innovation, provide more opportunity to leverage private investment, and result in a more robust and healthy contractor community and supply change.
Finally, we asserted that federal regulators should make a greater effort to engage experts, stakeholders and interest groups in the formulation of new acquisition rules prior to the rules being written. Explore potential rules with a spirit of collaboration, and government may avoid the messy fights that often occur during a shortened public comment period. An open dialogue with stakeholders will ensure the costs and benefits of potential rules are understood, possible alternative solutions for streamlining a rules implementation are examined, and that industry is able to comply.
That's right, these companies and more will be at the aerospace and defense supply chain event of the year - the Aerospace Industries Association’s summer Supplier Management Council meeting, August 4-6, 2014, at the St. Paul Hotel in St. Paul, Minnesota, hosted by 3M.
As we all know, these are critical times for our industry. Now more than ever, AIA members must work together to preserve and protect the aerospace and defense industry and find opportunities for growth. We look forward to having you with us at the Supplier Management Council as we work together on our most challenging issues.
Click here to register
3M will be scheduling one-on-one business meetings between AIA members and 3M's Business Unit and Sourcing Leaders from across 3M's Aerospace, Defense and Industrial business areas. 3M Representatives will have special expertise in the following:
Please Note: The last day to receive a refund of the registration fee is Monday, July 7th.
We look forward to seeing you in St. Paul!
The Department of Defense (DOD) must change how it acquires weapon systems and services. There is growing recognition from DOD leadership, Congress and the defense industry that it is time to revise the overly complex and burdensome system that drives unnecessary cost into programs and will soon make them unaffordable as defense budgets decline.
Making the acquisition system more economic and more responsive has been an elusive target. The challenges of time-to-delivery and product cost persist despite all attempts to reform the acquisition system over the last 40 plus years.
It’s time to stop tweaking the edges and bring the acquisition system into balance, starting with these core principles:
These principles inform the recommendations presented in this paper, written to address the critical questions asked by the House and Senate Armed Services Committees. How can acquisition be more cost effective? Can delivery be expedited? Can recruitment, retention, and training of acquisition professionals be improved? How can program managers be empowered to make sound decisions, and how can technical expertise be fostered? Oversight and management ideas were also sought, as were recommendations to improve cost and delivery over the life cycle of major weapons systems. This paper is organized to address these questions and requests.
Acquisition Rebalancing: Recommendations for Smart, Efficient & Effective Defense Procurement
Congressman Randy Weber (R-Texas 14th District) at 'Rockets on the Hill' meeting with teams from Clear Falls High School and Jefferson County 4H Club
After six months of rocketry design, simulated flights and test launches, hundreds of middle and high school students from across the country traveled to the nation’s capital in May for the championship round of the Team America Rocketry Challenge.
TARC is the world’s largest student rocket contest and the aerospace and defense industry’s flagship program designed to encourage students to pursue study and careers in science, technology, engineering and math (STEM). Organized by the Aerospace Industries Association and the National Association of Rocketry (NAR), TARC provides middle and high school students the opportunity to design, build and launch model rockets in an annual competition among more than 5,000 students nationwide.
TARC activities began with the competition’s third annual “Rockets on the Hill” congressional reception on Friday, May 10.
Greeting the students were Congressman Mike Honda of California, a member of the House STEM Education Caucus; Dr. John S. Langford, Chairman and CEO of Aurora Flight Sciences Corporation; and Leland Melvin, the NASA astronaut who led the space agency’s education mission directorate from 2010 to earlier this year. Following the reception the students visited the offices of their home state Senators and Representatives, bringing with them a strong message that STEM education pays off for America.
On Saturday, May 11, more than one hundred teams gathered at Great Meadow in The Plains, Va. to put their months of hard work to the test at the national finals. Teams had to launch a set of two raw eggs to 825 feet and return them safely to earth undamaged within a flight duration of 48 - 50 seconds using two identical parachutes. After an exciting day of competition, a large crowd gathered inside a tent to hail this year’s champions from Creekview High School in Canton, Georgia. Representing the Creekview Grizzly Bears were captain Amanda Semler, Andrew White, Bailey Robertson, Austin Bralick and Nick Dimos. The champions will share in more than $60,000 in cash and scholarship prizes and will travel to England in July courtesy of Raytheon to represent the U.S. on the world stage and compete against teams from the U.K. and France in the International Rocketry Challenge during the Farnborough Air Show.
The annual TARC activities were made possible by generous support of more than twenty industry partners: Aerojet; ARACON, a Micro-Coax product; Aurora Flight Sciences; Elbit Systems of America; Embraer Aircraft Holding, Inc.; General Electric Company; Harris Corporation; Honeywell Aerospace; Kaman Aerospace Corporation; L-3 Communications Corporation; LMI Aerospace, Inc.; Lockheed Martin Corporation; Northrop Grumman Corporation; Parker Aerospace; Raytheon Company; Rockwell Collins; Rolls-Royce North America, Inc.; RTI International Metals, Inc.; Space Exploration Technologies Corporation; The Boeing Company; and Woodward, Inc.
In another TARC related development, we’re very pleased to announce that Miles Lifson, who joined AIA in May, will manage the 2015 competition. Lifson comes to AIA from the Office of Congresswoman Donna Edwards of Maryland. He graduated in May 2013 from Claremont McKenna College with a double major in government and physics. He also interned with the Space Studies Board of the National Academies.
To help counter the media-fed misperception that NASA’s human spaceflight program ended with the retirement of the Space Shuttles, and to help provide a clear understanding of recent program progress, AIA recently published The New American Space Age: A Progress Report on Human Spaceflight.
This publication, released at the AIA Board of Governors meeting in May, provides a highly visual tour of hardware progress and program achievements made in the suborbital commercial market, the International
Space Station Program, Commercial Crew Program, and the Deep Space Exploration Program. The report highlights numerous achievements, including the following:
By informing Washington stakeholders of the impressive progress being made by NASA and the space industry on human spaceflight across 48 states, AIA believes the case for continued policy support and stable budgets for spaceflight programs is strengthened as Congress considers future funding for NASA programs.
AIA hosted in March a panel discussion and open forum with industry and government representatives on AIA’s new space report, Easing the Burden—Reducing the Cost of National Security Space Capabilities. AIA Vice President of Space Systems, Frank Slazer, moderated a lively discussion featuring the following panelists:
The speakers addressed the development of government and industry partnerships in a changing cost environment, with emphasis on new technologies that are making satellite development more cost effective. Trauberman described the upcoming Boeing 702 Satellite Product Line, an all-electric satellite to launch in 2015. The Boeing 702 uses electric thrusters, eliminating the need for chemical propulsion. Similarly, Barnhart described DARPA’s robotics experiments to develop the technology needed to reconstruct old satellites while in orbit. This program, called “Phoenix,” will conceivably lead planners to rethink the morphology and evolution of satellites.
The panelists agreed that the whole cost reduction process is not a “one size fits all” model for satellite development and evolution. When asked what will make the policies and requirements move faster, discussants focused on the need for stable funding to enable both the government and private sector to continue their cost-reduction partnerships. The panel members expressed confidence that new cost-reduction approaches can help create more affordable satellite systems without compromising quality, security, and technology advancement.
Still less than a year old, AIA's Workforce Policy Council has proved to be an aggressive advocate for educating other association members on workforce and STEM-related issues.
In effort to highlight the importance of growing AIA's workforce efforts, one of the sessions at the Spring Supplier Management Council meeting held in Dallas this March focused on STEM education and workforce development. The panel discussion addressed a broad range of topics including: extracurricular programs for K-12 students; skills development through Career Technical Education and other specialized training programs; two- and four-year undergraduate degree programs; and targeted outreach to females, underrepresented ethnic minorities, veterans and the disabled. Moderated by Gina Burns, chair of the AIA Workforce Policy Council and Vice President, Talent & Human Resources Operations at Lockheed Martin, the panel provided a range of perspectives and encompassed a broad spectrum of STEM education and workforce development programs in which AIA member companies are involved.
The panel is just one of a number of activities that AIA’s Workforce Policy Council has sponsored to help smaller aerospace and defense companies leverage efforts underway in their communities to address their workforce challenges. All AIA member companies are eligible to participate in any of the five workforce-related working groups organized under the Workforce Policy Council.
Dr. Brian Fitzgerald, CEO of the Business-Higher Education Forum (BHEF), emphasized public-private partnerships established with universities by Raytheon and Northrop Grumman to grow particular talent - such as cybersecurity specialists - through regional workforce projects coordinated by BHEF. Dr. Ralph Coppola, President of RKC International, spoke about the Real World Design Challenge, an extracurricular STEM competition to engage high school students in engineering design that he founded as an employee of AIA member company PTC. Brent Weil, Senior Vice President for Education and Workforce at the Manufacturing Institute, provided insight on how manufacturers like Boeing are addressing current technically-skilled worker shortfalls by developing customized training programs implemented by community colleges in areas of high demand. Joan Robinson-Berry, Boeing’s Vice President, Supplier Management for Shared Services Group, described that company's approach and efforts they have underway to attract and develop a diverse and inclusive talent pool. And Scott Thams, CEO, Integrity Aerospace Group, Inc., and a member of AIA’s Executive Committee, spoke to the role that smaller aerospace firms like his can have in developing productive apprentice programs.
This February, AIA and its member companies participated in the 2014 Singapore Air Show. This year's event -the largest air show in Asia- was held at the Changhi Exhibition Centre. The United States' aircraft corral supported by AIA displayed a P-8 Poseidon, an MV-22B Osprey, a C-17 Globemaster, a KC-130J Hercules, and a KC-135R Stratotanker. The C-17, MV-22B, and an F-16C participated in the flying displays.
At the show, AIA provided members the opportunity to participate in a panel discussion on export control reform, which featured: Deputy Assistant Secretary of State for Defense Trade Controls Kenneth Handelman; Director of the Defense Technology Security Administration Beth McCormick; and Director of the Munitions Control Division in the Commerce Bureau of Industry and Security, Michael Vaccaro.
AIA also hosted a luncheon address by Under Secretary of Defense for AT&L Frank Kendall. Joining Under Secretary Kendall and a number of AIA member company senior executives at the luncheon were Alan Shaffer, Acting Assistant Secretary of Defense for Research and Engineering, Elana Broitman, Acting Deputy Assistant Secretary of Defense for Manufacturing and Industrial Base Policy and Keith Webster, Director of International Cooperation at AT&L.
Kendall spoke about the need for increased and better-coordinated U.S. government participation at international trade shows, as they provide a forum to engage his direct foreign counterparts and promote U.S. aerospace and defense trade. He outlined the U.S.’ strategic rebalance to the Asia-Pacific region, the role international trade plays in maintaining the health of the domestic defense industrial base, and the importance of a "whole of government" approach to security cooperation engagement and advocacy with our closest allies.
Noting AT&L’s top priorities for 2014, Kendall emphasized the importance of supporting the U.S. war fighter in completing current missions. He also discussed the “Protect the Future” strategy that is designed to emphasize support for small businesses, continue development of a highly-skilled workforce, and increase research and development investments.
At the Farnborough International Air Show (July 14-20), AIA anticipates a similarly robust U.S. government presence. At Farnborough, AIA will support U.S. personnel and equipment participating in the show while also managing the U.S. DOD Corral. Several AIA-hosted events at the upcoming air show will foster a dialogue between the U.S. government and AIA members, as well as promote U.S. aerospace and defense trade and security cooperation with foreign customers. These activities represent the first steps AIA’s proposal for an Aerospace & Defense Trade Initiative, a concept which has been briefed to and is receiving growing interest and support from senior U.S. government officials at the Commerce Department, State Department, DoD, the FAA, and the NSC.