Pentagon acquisition chief Ellen Lord sent a memo to defense contractors today laying out which ones are deemed "critical" by the U.S. government and therefore expected to maintain their normal work schedules, despite the national emergency over COVID-19.
"The Defense Industrial Base is identified as a Critical Infrastructure Sector by the Department of Homeland Security," she wrote in a March 20 memo. "The DIB sector is defined as the worldwide industrial complex that enables research and development as well as design, production, delivery, and maintenance of military weapon systems/software systems, subsystems, and components or parts, as well as purchases services to meet U.S. military requirements."
The guidance, which is consistent with directions from the White House, encourages most defense contractors to continue working in the face of increased social distancing and shelter-in-place measures intended to stem the spread of COVID-19.
Lord said, however, that some defense contractors -- like those who provide lawn care, recreational support and office supplies -- are not critical and do not have a "special responsibility" to maintain their regular work schedules.
Lord said essential defense industrial base workers include, but are not limited: "aerospace; mechanical and software engineers; manufacturing/production workers, IT support; security staff; security personnel; intelligence support, aircraft and weapon systems mechanics and maintainers; suppliers of medical suppliers and pharmaceuticals, and critical transportation."
Additionally, critical personnel can include anyone working for defense companies and their subcontractors at government-owned/contractor-operated and government-owned/government-run facilities.
"Companies aligned with the essential critical infrastructure workforce definition are expected to maintain their normal work schedules," she said.
Lord urged contractors to follow guidance from the Centers for Disease Control and Prevention and said the department will continue to assess the COVID-19 situation as it evolves.
"We need your support and dedication in these trying times to ensure the security of this nation," she said. "I understand this national emergency presents a challenge and we are dedicated to working closely with you to ensure the safety of the workforce and accomplishments of the national security system."
But defense industry advocates and executives, however, worry that Lord's guidance, along with that of DHS, is only advisory and not legally binding if state and local authorities order the closure of factories and facilities.
The executive committee of the Aerospace Industries Association sent a letter to Defense Secretary Mark Esper today, asking the federal government to be more forceful.
"As we continue to engage with your acquisition professionals on specific policy and process matters, there is clear need for immediate Department-wide approaches," the letter said.
"In just the first few days of this crisis, we have seen state and local leaders impose a patchwork of controls that limit or even prohibit operations, and quarantine or otherwise impede the mobility of our workforce," the letter continued. "While we fully support efforts to preserve public health and are working in many locations to assist them on the ground, these actions threaten our ability to sustain our production of vital capabilities for the warfighter. Recent DHS and [under secretary of defense for acquisition and sustainment] memoranda have been helpful on a case-by-case basis, but they are advisory in nature and not legally binding; to establish stability for our operations across the nation, the federal government should legally establish national security programs and our workforce as essential."
The letter, which is signed by AIA President and CEO Eric Fanning and a host of the defense industry's top executives, also asks that DOD provide increased cash flow to industry and contract flexibility.
"All companies within the supply chain --- and especially small companies -- need liquidity to navigate through the crisis," the letter states. "We respectfully request that DOD immediately expedite the obligation of appropriated funds, increase use of accelerated and/or advance payments, increase reimbursement rates, and encourage long-lead purchases."
A new memo from DOD states the department will immediately increase progress payments rates to industry during the coronavirus outbreak.