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We continue to carefully and methodically track the state of the defense industrial base through DCMA for prime companies, top 10 defense contractors, and DLA for vendors. Out of 10,509 major prime companies, 106 are closed, with 68 companies having closed and reopened. Out of 11,413 vendor-based companies, 427 are closed, with 147 having closed and reopened.
Domestically, we are seeing the greatest impacts in the aviation supply chain, ship-building, and small space launch. We are seeing impacts on the industrial base by several pockets of closure internationally. Particularly of note is Mexico, where we have a group of companies that are impacting many of our major primes.
So, right now there isn't any specific COVID penalty that we see for a specific program, however, we do anticipate about a three-month slowdown at slower rates in terms of execution than we saw before. And we are just now looking at key milestones that might be impacted.
Question: "Hi, ma'am. Thank you.
In terms of the Section 3610 authorities that were put out, that would reimburse contractors for COVID-related delays or facility closures, do you need new money from Congress to pay for that? And how much do you think something like that's going to cost the department ultimately, if you're looking at three-month delays on things? "
Lord: "We believe it will cost us something and that what's part of our ask for this new package that we're talking about, the CARES Act 2. So we're talking billions and billions on that one."