Pentagon Needs Billions to Keep Up Weapons Supply

The coronavirus has levied a three-month delay on acquisition on major defense programs and caused the Pentagon to plan to seek billions of dollars from Congress to keep weapons manufacturers afloat.

The Pentagon feels funds urgently are needed to keep sections of defense manufacturers up and running while they cope with the pandemic, Reuters reports.

Ellen Lord, Defense undersecretary for acquisitions and sustainment, indicated aviation, shipbuilding, and small space launch are the hardest hit among defense manufacturers, according to Roll Call.​

While many major defense firms are continuing to work, Reuters reported 106 contractors out of 10,509 are closed, while 68 have closed and reopened. Out of 11,413 subcontractor firms, 427 are closed and 147 have closed and reopened. 

Many defense contractors have remained open, because they have been deemed essential by the Department of Homeland Security. 

The Pentagon has not specified how much it will request under the CARES Act because Pentagon proposals have not yet received the approval of the White House Office of Management and Budget, but it is expected to be significant.

This week, $3 billion will be sent to contractors, and the Pentagon will increase reimbursements for uncompleted work, termed "progress payments" or "interim payments." The Pentagon hopes major contractors will pass on additional funds to hard hit smaller subcontractors.

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