Geurts: Navy 'infused' $600M to shipbuilding base in response to COVID-19

摘要

The Navy has infused S600 million into the shipbuilding industrial base during the coronavirus pandemic by reducing retainers and withholds, according to a senior service official. "So not only has that allowed us to put some cash into the system that can go all the way through the supply chain, it also points to some areas where we're reforming the way we're going forward on programs," Navy acquisition executive Hondo Geurts told reporters today during a telephone roundtable. The acquisition executive in March published a memo instructing his directorates to take a variety of steps to increase cash flow to the industrial base. One of those steps was to reduce "retentions/withholds" to an "absolute minimum" as well as immediately paying out all settled requests for equitable adjustments. The $600 million Geurts referenced primarily came from Naval Sea Systems Command's shipyard repairs and new ship construction. He said the service was already considering a reduction to its 10% retainers on ship repairs because the retainers had an exaggerated impact on mid-sized and small subcontractors.