U.K.-U.S.Defense Industry Seminar
Lisa DavisPrincipal Assistant
Deputy Under Secretary of Defense(Industrial Policy)
February 24, 2003
ODUSD (Industrial Policy)
DUSD (Industrial Policy)Principal Assistant DUSD(IP)
Industrial BaseManagement Initiatives
• Industrial Base Acquisition Initiatives• Congressional/Budget/Reporting• Business Management/E-Business• International Industrial Base• Industry Security• Industrial Priorities
Industrial Base Transformation
• Domestic Merger & Acquisition AnalysisHart-Scott-Rodino
• Foreign Merger & Acquisition AnalysisCommittee on Foreign Investment in U.S.
• Industrial Financial Analysis• Defense Industrial Base Transformation
Industrial BaseAssessment
• Industrial Base AnalysisSector Studies
• Production Readiness AssessmentsDefense Acquisition Board Support
• Industrial Capability AssessmentsSecond Sourcing
Updated Feb 2003
(http://www.acq.osd.mil/ip)
An Increasingly Integrated Industrial FoundationAmong U.S. and European Allies
Formal linkages areincreasing over time
Joint venturescommon atsystems level
Subsystem levelgrowing moreglobalized
Component levelvery globalized
Strong foundation for future cross-border relationships already exists
Platform / SystemIntegrators
Major Subsystems(radars, missiles, engines)
Subsystems(e.g. flight controls, electro-optical devices, landing gear, rocket motors)
Components / Commercial Equipment(e.g. Focal plane arrays, actuators, displays, computer chips)
JSF – A New Paradigm
• Transformational acquisition model for DoD– Jointness– Affordability– Interchangeable Engine– International Participation– “Best value” acquisition
• Significant impact on strength of industrial base– Both US and foreign
LM Aero JSF Design/Production Team – United Kingdom
EjectionSeat
•Martin Baker
Lift Fan
•Rolls Royce
Electro-OpticalTargeting
Laser
•BAE SYSTEMS
EW/CMComm/Nav
•BAE SYSTEMS
3-BearingSwivel Nozzle
•Rolls Royce
RollDucts
•Rolls Royce
Weapons BayDoor Drive
• TRW/Lucas Aerospace
FuselageRemote InterfaceUnits
• Smiths Industries
LifeSupportSystem
•HoneywellNormalair-Garrett
ElectricalPower
System
• Smiths Industries
Tactical DataEquipment
• Smiths Industries
CanopySystem
•GKN ACT
CV Wingfold
•BAE SYSTEMS
Fuel SystemComponents
ThrottleQuadrant
•BAE SYSTEMS
U.K. WeaponsIntegration
•BAE Matra
StoresEquipment
•Ultra Electronics
Firm Potential
• Flight Refuelling
CompositeMaterials
•Cytec Fiberite
Aft Fuselage &Structural
Components
•BAE SYSTEMS
Composites
• Shorts
RemoteInput/
Output
• Smiths Industries
Distribution Statement A. Approved for Public Release; Distribution Is Unlimited.
Setting Defense Industrial Priorities• Defense Priorities and Allocations System (DPAS)
– Establishes priority ratings for contracts– Resolves industrial conflicts via “special priorities assistance”– Supports allied nation defense orders in U.S.– Since 1995, about 125 cases
• Arrangement in place with U.K. to provide reciprocal priorities support
– 41% NATO– 40% U.S.– 13% U.K.– 6% Other Nations
– 40% Bosnia– 12% Kosovo– 16% Enduring Freedom– 32% Peacetime
U.S. DPAS Support to U.K.(Calendar Year 2002)
YesRating to meet MOD delivery requirement
General Dynamics
MuirheadAvionics
AN/PRC-112 radios and GPS appliques
April
NoRating to preserve place in queue
EFWWestlandIntegrated Helmet Units for WAH-64D Apache Longbow Helicopters
March
YesRating, and preferential performance over certain US DoD orders
Rockwell-Collins (U.S.)
Rockwell-Collins (U.K.)
ARC-210 Satellite Communication Equipment for Nimrod Aircraft
March
YesRating to establish subcontractor priorities
Smiths (U.S.)Thales (U.K.)Kneeboard Moving Map Display Systems for Chinook Helicopter Night Enhancement Package
March
YesRating to establish priority within Honeywell and with subcontractors
HoneywellThales (U.K.)Inertial Navigation Systems for Chinook Helicopter Night Enhancement Package
March
For Operation Enduring Freedom?
DispositionU.S.Supplier
U.K. CustomerItemDoC “Action Date”