DoD Details DIB Closures from COVID-19

The Defense Department (DoD) said today that coronavirus-related concerns have closed about one percent of the companies that it considers “prime” in the defense industrial base (DIB), and that DoD is working to help affected companies to reopen.

Undersecretary of Defense for Acquisition and Sustainment Ellen Lord discussed the issue today, saying that 106 of 10,509 prime companies are closed. Another 68 prime companies had closed, but have since reopened. Of 11,413 vendor-based DIB companies, 427 are closed currently, and 147 companies have closed and reopened.

Lord said she is working with the State Department to help reopen companies based overseas, and working with the Mexican government to help reopen companies based in that country that are  “especially important for our U.S. airframe production.” Lord said.

DoD said the Defense Contract Management Agency is tracking the large DIB companies, and the Defense Logistics Agency is monitoring small vendors. The most serious impacts are now with companies involved in aviation supply, shipbuilding, and small space launch, DoD said.

Jordan Smith
About Jordan Smith
Jordan Smith is a MeriTalk Staff Reporter covering the intersection of government and technology.

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