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 AIA UPDATE: October 2006, Volume 11, No. 3
Impact of Unmanned Aircraft on Airspace Under Study FAA in late September selected AIA member Lockheed Martin to support development of a road map for introducing growing numbers of unmanned aircraft systems (UAS) into the National Airspace System. That action follows a mid-summer meeting of AIA's Research and Development Committee with NASA's Aeronautics Research Mission Directorate at which UAS operations in civilian airspace were a central topic. NASA Associate Administrator Lisa Porter noted that the Joint Planning and Development Office (JPDO) will eventually incorporate operations for unmanned systems, very-light jets, and other aviation system initiatives into its plan for the Next Generation Air Transportation System (NGATS). NASA officials and R&D Committee members at the AIA-sponsored meeting acknowledged that federal agencies and industry face challenges in adapting operating models for new systems into JPDO and NGATS. In announcing the FAA contract, Lockheed Martin said it will assist the agency's Unmanned Aircraft Program Office in creating a five-year road map of government and industry UAS initiatives. The company will provide a big picture of the emerging UAS market and its subsequent impact on the nation's airspace resources. The current UAS market in the United States is driven by government customers at the Defense and Homeland Security departments, U.S. Customs and Border Protection, and the National Oceanic and Atmospheric Administration. Today, according to FAA, more than 50 manufacturers offer nearly 150 UAS products, with many others poised to enter the commercial marketplace. At the AIA/NASA meeting, hosted by Gulfstream Aerospace, supersonic flight advances were also discussed, and NASA's Porter expressed interest in potential increased use of composites in supersonic aircraft design. In a related activity, attendees toured exhibits of Gulfstream's developing Sonic Whisper advanced technology. AIA Source: susan.mertes@aia-aerospace.org AEROSPACE FOCUS  New AIA Defense Council Established AIA has created a new Defense Council to focus on defense policy development, industry initiatives to enhance the nation's defense, and support for continued U.S. military pre-eminence. The new Defense Council, the Technical Operations Council, and the International Council are under the leadership of the association's National Security Council (NSC), which provides strategic guidance and integration of their work. The three working-level groups will turn the NSC's vision and guidance into policy positions and activities that help carry out industry's goals. Creating the Defense Council lets the NSC focus on its core functions of oversight, leadership, and strategic planning," explained AIA Executive Vice President Mark T. Esper. "As with the Technical Operations and International councils, Defense Council members will be hands-on, working day-to-day to advance industry's interests." Initially, the Defense Council will have three committees:
Assistant VP for Defense Policy Jeremiah Gertler will coordinate Defense Council activities within AIA and co-chair the working groups. AIA Source: jj.gertler@aia-aerospace.org Progress Achieved for Industry in Fiscal 2007 Authorization Bill Congress late last month passed the fiscal 2007 defense authorization bill containing a number of provisions that impact the aerospace and defense industry, including preference for the use of domestic specialty metals in military hardware — a decades-old issue known as the Berry Amendment. Buy American initiatives, which AIA opposed, and some key acquisition policy modifications are also affected by the authorization measure. A thorough review of the bill's language was underway at press time, but a preliminary analysis indicates moderate aerospace and defense industry progress was achieved. AIA, the Defense Department, and the White House strongly supported Senate language on the Berry Amendment that would have provided some long-term structural relief for companies using specialty metals in military hardware. The Senate language also would have provided a balanced approach to protecting the important domestic specialty metals industry while allowing the aerospace and defense industry to operate efficiently in today's economic environment. Only part of the Senate language survived in the final bill — an exemption for de minimis (insignificant) content in commercial electronic components. In addition, contractors and subcontractors at all tiers will be able to apply for waivers of the specialty metals provisions when compliant material is not available. AIA is scheduling meetings with the Defense Department to discuss how the bill will be implemented. In other areas, Buy American language affecting World Trade Organization subsidies and sales to China were dropped in the final bill. Language on fixed-price development contracts provides contracting officers with sufficient leeway to determine when these contract types should be applied, based on the level of risk of the program. AIA Source: cord.sterling@aia-aerospace.org WASHINGTON PIPELINE: Extension of R&D Tax Credit Would Spur Innovation and Protect Aerospace Jobs By John W. Douglass, AIA President and Chief Executive Officer The federal research & development (R&D ) tax credit expired last December, and AIA has been working within a broad business coalition to win congressional renewal of the measure before the end of this year. Congress has extended the tax credit 11 times since 1981. Taken together, aerospace and aviation generate productivity equal to nearly 15 percent of the nation's gross domestic product and support approximately 11 million domestic jobs. America's economic growth and national security, therefore, depend on the work of companies in many segments of applied research that would advance under the R&D credit, including civil and military space systems, air transportation, and national defense. And the R&D credit supports hundreds of thousands of high-paying aerospace jobs because wages and salaries account for 75 percent of all revenue recovered from the benefit. U.S. industries produce the world's most reliable aerospace systems and subsystems, and the R&D credit helps us compete in the trans-Atlantic marketplace in which governments underwrite a significant amount of Europe's civil aeronautics R&D. Since 1998, however, NASA and DoD budgets for aeronautics research and technology programs have decreased by more than one-third. Total federal government R&D and research infrastructure expenditures related to aerospace dropped by 75 percent between 1987 and 2000. In the meantime, the aerospace science and engineering workforce has contracted at an alarming rate. Twenty years ago our industry employed 20 percent of the nation's R&D scientists and engineers. By 2001 the level had tumbled to 2.4 percent. The November 2002 bipartisan report of The Commission on the Future of the U.S. Aerospace Industry warned that the nation could miss several opportunities to develop "breakthrough capabilities" in noise and emissions mitigation, hydrogen-fueled engines, and in high-performance computers, propulsion and energy systems. A bill passed earlier this year by the House creates a new elective, simplified credit with the effect of lowering the disproportionate financial risks that confront many aerospace companies whose R&D investments are essential to validating the performance of new technologies before they can enter production. Soon thereafter, the Senate Finance Committee reported similar legislation authorizing the simplified credit. This incentive particularly benefits the aerospace industry because it will permit defense-intensive companies to apply for a credit based on the three prior years of research investment rather than using the "base period" of Pentagon spending between 1984 and 1988 as required by current law. For now, the Senate must complete action on the R&D tax credit so that industry can claim benefits based on actual spending in 2006 and projected spending for 2007. AIA's challenge in the next session of Congress, however, will be to secure a permanent extension of the R&D credit to pave the way for aerospace companies to plan long-term product investments. Few public policies make such a dramatic contribution to the cultivation of a motivated and dynamic American aerospace workforce. This challenge remains worthy of our most determined efforts. WASHINGTON WATCH: Space Council Urges Investment in ORS AIA's Space Council is urging the U.S. Air Force to continue to develop its Operationally Responsive Space (ORS) initiative in support of warfighters. The space-based program was initiated as part of the Defense Department's force transformation as a means to improve support for ground forces from space. The Space Council effort is in response to reports that the Air Force has eliminated most ORS funding in its budget plans for fiscal 2008. The council is asking senior military and policy leaders to take steps to fully fund ORS for fiscal 2008 and beyond. Many executive branch policymakers and members of Congress support aggressive development of ORS capabilities, AIA points out. ORS would involve launch vehicles, spacecraft, launch ranges, and command and control systems in providing ground and naval forces with enhanced space-directed capabilities that would complement today's systems. Members of the Space Council plan to meet with DoD officials to discuss the issue and will expand their outreach to the National Security Council, the Office of Management and Budget, and Congress. The Space Council has identified ORS as a key issue for 2007 and plans to develop a briefing paper for distribution in support of the initiative. AIA Source: susan.mertes@aia-aerospace.org WASHINGTON WATCH: Bank Reauthorization Advances in Congress The Senate Banking Committee in September passed a five-year extension of the U.S. Export-Import Bank charter, clearing the way for action by the full chamber this fall. AIA supports the charter extension and provided a policy briefing to all members of the committee. Ex-Im Bank has maintained a strong record of supporting U.S. civil aviation exports to high-growth air transportation markets in Asia and Latin America. The agency's loan guarantees also help domestic manufacturers counter aggressive export credit policies of foreign governments. AIA's briefing further points out that more than 80 percent of all Ex-Im Bank transactions involve small- and medium-sized businesses. By law, however, Ex-Im Bank can't directly compete with private lenders and must disapprove any loan application that would have a negative net effect on the U.S. economy. The full House of Representatives passed the charter extension earlier this year. The House and Senate committee versions of the bill are nearly identical, meaning that the charter will likely win swift congressional approval before the end of the year. AIA Source: patrick.mccartan@aia-aerospace.org WASHINGTON WATCH: Leader Named New Director of JPDO Charles Leader is the new director of the Joint Planning and Development Office (JPDO), a multi-agency and industry program to transform the nation's air transportation system by developing a Next Generation Air Transportation System (NGATS). Leader comes to the JPDO from successive executive positions in several technology companies, including Hughes Aircraft Co. where he was involved with air traffic control technologies. The JPDO includes senior representatives from FAA, NASA, the White House Office of Science and Technology, and the Commerce, Defense, Transportation and Homeland Security departments. Mike Romanowski, AIA vice president of civil aviation, met with Leader after his appointment to update him on NGATS Institute Management Council air traffic control system improvement efforts, including AIA initiatives. AIA President and CEO John Douglass is a member of the NGATS Institute Management Council. Responding to internal and external concerns regarding the effectiveness of JPDO's structure and processes, the council this year formed an Action Team to study JPDO functions and suggest improvements. Action Team recommendations, endorsed by JPDO's Leader, were presented to the council in August. Implementation is underway. AIA Source: susan.mertes@aia-aerospace.org Parker Aerospace Hosts Successful AIA Regional Meeting; Dallas Bob Barker, president of Parker Aerospace, hosted AIA's most recent regional meeting in September in Irvine, Calif. Kenneth Mease, professor of mechanical and aerospace engineering at the University of California at Irvine, was a keynote speaker. His NASA-sponsored research has contributed to the development of critical guidance, navigation, and control of aircraft and spacecraft. Other speakers were Guy Norris, a Flight International editor who outlined the Boeing/Airbus rivalry, and Mark DeVoss, Boeing's director of global mobility systems who leads the C-17 and B-767 tanker supplier and materials management organization, which conducts business with more than 1,000 suppliers worldwide. Parker Aerospace is a world leader in the design, manufacture, and servicing of hydraulic, fuel, flight control, and pneumatic components, systems, and related electronic controls for aerospace and other high-technology markets. The next regional meeting will occur February 22-23, 2007, hosted by Raytheon Company in Dallas. For more information about regional meetings, contact Trish Ward by phone at 703-358-1061 or e-mail trish.ward@aia-aerospace.org. AIA Source: trish.ward@aia-aerospace.org NASA Should Increase Aeronautics Research Funding, AIA Tells Hill NASA needs to ramp up aeronautics research funding, coordinate research with industry, and help transition basic research for public benefit. Those were among the suggestions from AIA Civil Aviation Vice President Michael Romanowski to members of the House Space and Aeronautics Subcommittee in response to questions delivered regarding the future of aeronautics at NASA. Romanowski said the first step that should be taken is stopping the yearly cuts in the aeronautics budget, which has plummeted two and a half times less than the 1994 investment level. "Instead of reducing aeronautics funding by $188 million for FY 2007," Romanowski said, "Congress should maintain funding at the FY 2006 enacted level of $912.3 million and require that NASA immediately apply this increased portion of the FY 2007 funds to transitional research programs defined and performed in partnership with NASA's industry and government stakeholders." The questions stemmed from testimony Romanowski gave in July at the first of two hearings on NASA aeronautics research. The second hearing took place in late September. Other witnesses were NASA's Associate Administrator for Aeronautics Lisa Porter and the National Academy of Science Decadal Survey representative Gen. William Hoover. AIA is working to ensure the most possible funding for the research in NASA's fiscal 2007 budget. The House passed a measure that would set the level at $824.4 million, while the Senate Appropriations Committee agreed to $759.4 million AIA Source: michael.romanowski@aia-aerospace.org Aviation Week's Aerospace and Defense Programs & Productivity Conference Industry executives will join AIA President and CEO John Douglass at Aviation Week Group's Aerospace and Defense Programs & Productivity Conference scheduled for November 13-15 in Phoenix, Ariz. J. Michael Cerneck, CEO of Swales Aerospace, Mark Newman, president and CEO of DRS Technologies, and Dean Flatt, president of Honeywell Defense & Space, will discuss the most important challenges to the industry's top programs. For more information and to register for the conference, go to www.aviationweek.com/conferences/admain.htm. Industry Environmental Advocacy Available at aerofacts.org  It's not easy to explain what trichloroethylene or 1,4-Dioxane are, much less what the aerospace industry is doing to make such compounds safe.
A new AIA initiative is making aerospace environmental matters easier to understand with a Web site that provides comprehensive information about materials used in the industry. The site — www.aerofacts.org — is part of an effort known as the Alliance for Environmental Responsibility and Openness. It is aimed at informing the public about risks and benefits involved in the production and maintenance of aerospace products and demonstrating the industry's commitment to safety, responsibility, and openness on public health and environmental stewardship. The site, up and running since the end of August, is focusing on issues affecting site remediation efforts, such as trichloroethylene, 1,4-Dioxane, and vapor intrusion. Updates will be added on a regular basis, and AIA members are welcome to visit and provide feedback or suggestions for improvement. To learn more, contact Hoai Huynh, AIA's director of environment, safety, and health, at hoai.huynh@aia-aerospace.org. Aurora Flight Sciences Joins AIA The association's newest member is Aurora Flight Sciences, a leader in unmanned aerial vehicle technology for research, defense, and homeland security organizations. For more than 17 years the company has expanded the limits of unmanned flight through the design and manufacture of innovative aircraft, specializing in the production of composite and metal aerostructures for manned and unmanned aircraft. Founded in 1989 and headquartered in Manassas, Va., Aurora employs more than 300 people in its Virginia, Mississippi, and West Virginia facilities. Last December, Aurora returned to its roots by opening its Research and Development Center in Cambridge, Mass. The center's mission is to collaborate with researchers at the Massachusetts Institute of Technology and other organizations to develop innovative technologies that Aurora can integrate into its unmanned vehicles. For more information, visit www.aurora.aero. AIA Source: trish.ward@aia-aerospace.org AIA Organizing India Trade Mission AIA's Supplier Management Council and the National Security Division are organizing the association's first-ever foreign trade mission for representatives of U.S. aerospace and defense companies. The destination is India, and the mission will take place December 2-7. Participants will be exposed to India's procurement procedures, trade offset requirements, and key aerospace and defense companies. Working with the Confederation of Indian Industry and the American Chamber of Commerce, AIA also is arranging meetings with senior officials from India's Defense, External Affairs, and Commerce agencies. India represents one of the world's fastest growing markets with a huge, soon-to-be unlocked, aerospace and defense market. For more information, visit AIA's Web site or contact Varun Nikore at varun.nikore@aia-aerospace.org TRIAD Seeks More Small Business Reps Involved in Panel's Agenda The Tri-Association Advisory Panel on Small Business (TRIAD) is preparing an initiative to increase participation of representatives of small businesses, small disadvantaged businesses, women-owned small businesses, and veteran-owned businesses in the panel's meeting agendas. A number of AIA associate member companies are in these categories. The initiative will be launched at TRIAD's February 2007 meeting. Many AIA member companies have small business liaison officers (SBLOs) in their organizations who negotiate subcontracting plans with the government and advocate small business capabilities to the contracting and program offices within their companies. More than 20 years ago AIA, the Electronics Industries Association (now the Electronic Industries Alliance), and the National Security Industrial Association (now the National Defense Industrial Association) formed TRIAD, which is composed of SBLOs. Over the years the panel increased subcontract awards beyond government goals and, working with government executives and congressional staffs, was instrumental in defining the details of the Defense Department's Mentor-Protégé Program and the Comprehensive Subcontracting Plan Test Program. TRIAD meets three times yearly just before national small business events. AIA Source: bill.lewandowski@aia-aerospace.org UTC Lyman Award Nominations Sought by AIA; Presentation Will Take Place at Year-End Event AIA is seeking nominations for the 2006 United Technologies Corporation Lauren (Deac) Lyman Award. The award will be presented by AIA at the association's Year-End Review and Forecast luncheon Dec. 13 in Washington, D.C. The Aviation/Space Writers Association established this prestigious award in 1972 to honor Lyman, a distinguished aviation writer for The New York Times who later became a public relations executive for United Aircraft, predecessor of today's UTC. Lyman was widely known for championing high public relations standards and excellence in writing. Thus, the award honors distinguished, career-long achievements in aviation journalism or public relations. AIA is helping carry on the tradition of the Lyman Award, sponsored at times by both AWA and the Society of Aerospace Communicators. Nominations should include a biography of the candidate with a short explanation of the candidate's qualifications. Submissions should be e-mailed by Nov. 3 to Alexis Allen, AIA director of communications, at alexis.allen@aia-aerospace.org. AIA 2006 Top Issues: Space Exploration and the National Interest: Just the Facts In support of two AIA 2006 Top Issues on space, the association has produced a policy toolkit that highlights the economic, environmental, and national security advantages that nearly a half-century of space exploration have delivered to the American people.  Copies can be requested by e-mail from chantal.jdtb@aia-aerospace.org. The booklet is also available online.
Here's an excerpt of one section from the guide: Truth in Space Budgeting NASA consumes a fraction of the federal government's budget and has never diverted resources from national defense or human services programs. NASA's fiscal 2007 spending allocation ($16.8 billion) translates into 0.7 percent of the 2.7 trillion dollar federal budget. This trend started more than 30 years ago, meaning that for approximately 36 of its 48 years in existence, NASA has accounted for less than one penny of every federal dollar expended. Even during the agency's peak budget years of the 1960s when the nation began to reap the benefits of the Apollo program, NASA barely represented four percent of the federal budget. No trade-offs exist between NASA and other priority programs. While NASA claims far less than one percent of the federal budget, anti-poverty programs and national defense each total about 16 percent. Finally, during the Clinton and Bush administrations, the NASA budget decreased or remained flat. By contrast, just between 2001 and 2003, domestic discretionary spending rose by $103 billion. Behind the HEADLINES: A Look at the Acquisition Reform Working Group The Aerospace Industries Association is one of 10 associations that make up the Acquisition Reform Working Group (ARWG). ARWG was established in 1993 to coordinate response from industry to the Section 800 report in the National Defense Authorization Act for fiscal 1991. The report directed the Defense Department to establish the DoD Advisory Panel on Streamlining and Codifying Acquisition Laws to review nearly 900 laws affecting the defense procurement process. More than 600 laws were eventually selected for thorough review by the panel, including contract formation and administration, standards of conduct, commercial items, and intellectual property. In addition, ARWG worked to influence the Federal Acquisition Streamlining Act of 1994. Today, ARWG is the primary voice of industry on key defense acquisition policy legislation, such as the 1996 Clinger-Cohen Act, Civil-Military Integration, and the Services Acquisition Reform Act of 2003. Also, the acquisition working group submits to Congress each year legislative proposals that industry believes will improve the defense acquisition process. Once the defense authorization and appropriation bills are released to the public, ARWG prepares a response to the provisions that impact defense acquisition policy. Representatives from ARWG often meet with congressional staffers to thoroughly explain industry positions. The working group represents large and small businesses, manufacturers, and service companies that are part of the government contracting community. Other members of ARWG are the American Consulting Engineers Council, American Council of Independent Laboratories, AeA (formerly the American Electronics Association), Contract Services Association, Electronic Industries Alliance, Information Technology Association of America, National Defense Industrial Association, Professional Services Council, and the U.S. Chamber of Commerce. AIA Source: kirsten.koepsel@aia-aerospace.org |
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