October 19, 2020 | International, Naval

2019 was a landmark year for Connecticut’s defense industry

Julia Bergman

Military contractors in Connecticut had their most lucrative year in more than a decade in 2019, receiving $37.1 billion in defense contracts last year.

That's according to the State of Connecticut Office of Military Affairs, which has tracked contracts received by the state's defense industry since 2007 and releases an annual report on the outlook for the industry.

In reality, the value of defense contracts awarded in 2019 to Connecticut companies or companies doing business in the state was likely higher than $37.1 billion, as the report only relies on prime contracts worth $7 million or more. The previous high was in 2014, when the report recorded $27.1 billion in contracts.

The growth in 2019 was spurred by the $22.2 billion contract the U.S. Navy awarded to Electric Boat last December for the construction of nine Virginia-class attack submarines — the largest shipbuilding contract ever awarded by the Navy. The contract includes the option to purchase a 10th submarine, which would increase its value to $24.1 billion.

In addition to the record-breaking contract, Congress passed a defense budget that resulted in $30 billion for Connecticut-based defense programs this fiscal year, including the purchase of helicopters, jet engines and submarines all manufactured in the state.

Defense contractors, deemed essential businesses during the coronavirus pandemic, have continued to fare well, similar to what happend during the 2008-09 recession, said Bob Ross, executive director of the Office of Military Affairs.

At the time, Connecticut firms with both defense and commercial arms saw their commercial business lag but were kept busy by their military contracts.

"We're seeing some of that again," Ross said. "For example, commercial aviation has been struck by the (coronavirus) pandemic, but the military aviation side has kept going."

In the past three years, the growth in defense contracts has mainly been related to submarine construction at EB and jet engine manufacturing at Pratt & Whitney.

"Suppliers have been busier than ever, particularly for submarines," the report says. "Such high level of defense production will likely be the case for many years to come, as Connecticut continues to produce and maintain the world's most sophisticated nuclear submarines, state of-the-art military jet engines, and a variety of military rotary wingaircraft used worldwide."

https://www.theday.com/military-news/20201016/2019-was-landmark-year-for-connecticuts-defense-industry

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March 1, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

Contract Awards by US Department of Defense - February 26, 2019
NAVY Lockheed Martin Space, Littleton, Colorado, is awarded a maximum amount $846,030,000 un-priced letter contract modification PH0001 to a previously awarded and announced un-priced letter contract (N00030-19-C-0025) for the design, development, build and integration of large diameter rocket motors, associated missile body flight articles, and related support equipment for Navy Intermediate Range Conventional Prompt Strike Weapon System flight test demonstrations. Work will be performed at Littleton, Colorado, with an expected completion date of Jan. 1, 2024. Fiscal 2018 research, development, test, and evaluation funds in the amount of $20,000,000 are obligated on this award, which will expire at the end of the current fiscal year. Fiscal 2019 research, development, test, and evaluation funds in the amount of $67,000,000 are being obligated on this award, which will not expire at the end of the current fiscal year. Strategic Systems Programs, Washington, District of Columbia, is the contracting activity. Raytheon Co., Tucson, Arizona, is awarded $25,229,389 for firm-fixed-price modification P00033 to a previously awarded contract (N00019-17-C-0034). This modification provides for the procurement of Tomahawk Block IV All-Up-Round spares to support the recertification of Tomahawk Missiles. Work will be performed in El Segundo, California (27.57 percent); Walled Lake, Michigan (15 percent); Tucson, Arizona (14.47 percent); Washington, Pennsylvania (11.66 percent); Hollister, California (4.25 percent); Midland, Ontario, Canada (4.18 percent); Glenrothes Fife, United Kingdom (3.2 percent); Vergennes, Vermont (2.9 percent); Orchard Park, New York (2.56 percent); Berryville, Arkansas (1.86 percent); South El Monte, California (1.46 percent); Merrimack, New Hampshire (1.28 percent); Fairfield, California (1.08 percent); Huntsville, Alabama (1.05 percent); and various locations within the continental U.S. (7.48 percent), and is expected to be completed in October 2020. Fiscal 2017, 2018 and 2019 weapons procurement (Navy) funds in the amount of $25,229,389 will be obligated at the time of award, $4,186,657 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Johnson Control Navy Systems, York, Pennsylvania, was awarded an $18,819,845 firm-fixed-priced, indefinite-delivery/indefinite quantity contract, for up to 32 air conditioning plant conversion kit and auxiliary components to support Naval Surface Warfare Center Philadelphia Division. Work will be performed in York, Pennsylvania. The contract will have a three year ordering period and work is expected to be complete by February 2022. Fiscal 2019 other procurement (Navy) funding in the amount of $1,995,356 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S. Code. 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Surface Warfare Center, Philadelphia Division, Philadelphia, Pennsylvania, is the contracting activity (N64498-19-D-4008). (Awarded Feb. 22, 2019) ARMY Jacobs Engineering Group Inc., Dallas, Texas, was awarded a $40,000,000 firm-fixed-price contract for architect and engineer services to support the Air Force Materiel Command Headquarters buildings at Wright-Patterson Air Force Base, Ohio. Bids were solicited via the internet with six received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 25, 2024. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-19-D-0013). QED Systems LLC,* Aberdeen Proving Ground, Maryland, was awarded a $9,688,969 modification (P00036) to contract W15P7T-14-C-C012 for program management, engineering, logistics, business, administrative, operations, and security services. Work will be performed in Aberdeen Proving Ground, Maryland, with an estimated completion date of Aug. 26, 2019. Fiscal 2019 operations and maintenance Army funds in the amount of $9,688,969 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. AIR FORCE Cherokee Nation Technologies, Tulsa, Oklahoma, has been awarded a $39,461,205 firm-fixed-price contract for advisory and assistance services (A&AS) for programmatic, environmental cleanup, project execution and financial support. This contract provides base realignment and closure programs and requires a full range of A&AS and deliverables in the areas of management and professional services; studies, analyses, and evaluations; and engineering and specialized technical expertise. Work will be performed at several locations in the U.S. and is expected to be complete by April 6, 2023. This award is the result of a competitive acquisition and three offers were received. Fiscal 2019 operations and maintenance funds in the amount of $9,525,678 are being obligated at the time of award. Air Force Installation Contracting Agency, Joint Base San Antonio, Texas, is the contracting activity (FA8903-19-F-0001). RiverTech, LLC,* Colorado Springs, Colorado, has been awarded a $34,513,979 firm-fixed-price contract for command and control technical support. This contract provides for the operational, technical, and analytical expertise for the planning and execution of training and test events, conducting Live-Virtual-Constructive and Distributed Mission Operations activities, providing operational support, providing non-kinetic operations training and tactics development support, and conducting operational testing of command and control, intelligence, surveillance and reconnaissance systems. Work will be performed at Kirtland Air Force Base, New Mexico; and Nellis AFB, Nevada, and is expected to be complete by March 25, 2024. This award is the result of a competitive acquisition and three offers were received. Fiscal 2019 operations and maintenance funds in the amount of $3,520,157 are being obligated at the time of award. Air Combat Command Acquisition Management & Integration Center, Hurlburt Field, Florida, is the contracting activity (FA4890-19-C-A005). Sonalysts Inc., Waterford, Connecticut, has been awarded a $17,316,322 cost-plus-fixed-fee modification (P0002) to previously awarded contract FA8806-19-C-0002. This modification provides for the development of the training system supporting GPS Next Generation Operational Control System under the management of the Space Training Acquisition Office. Work will be performed in Waterford, Connecticut, and is expected to be complete by April 25, 2022. Fiscal 2019 research and development funds in the amount of $6,000,000 are being obligated at the time of award. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. DEFENSE LOGISTICS AGENCY De Rossi & Son Company, Inc., Vineland, New Jersey, has been awarded a maximum $11,351,934 modification (P00012) exercising the fourth one-year option period of a one-year base contract (SPE1C1-15-D-1033) with four one-year option periods for men's Army coats. This is a firm-fixed-price contract. Location of performance is New Jersey, with a March 3, 2020, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. U.S. TRANSPORTATION COMMAND Cargo Transport System Co., Safat,, Kuwait, has been awarded a contract modification (P00007) on contract HTC711-17-D-R021 in the amount of $10,000,000. This modification provides continued stevedoring and related terminal servicesto the 595th Transportation Brigade. This includes vessel loading, vessel discharge, receipt of cargo, disposition of cargo, stuffing/unstuffing of cargo, intra-terminal transfer of cargo, inland transportation of cargo, customs clearance, yard management and management expertise. Work will be performed in ports of Kuwait. The period of performance is from March 9, 2019, to Sept. 8, 2019. Fiscal 2019 Transportation Working Capital Funds were obligated at award. This modification brings the total cumulative face value of the contract to $27,709,945 from $17,709,944.97. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. (Awarded Feb. 25, 2019) * Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1768604/
November 3, 2022 | International, C4ISR

Safran and MBDA take a majority stake in CILAS
Safran Electronics & Defense and MBDA have completed the acquisition of ArianeGroup's 63% majority stake in CILAS, a French company specialized in lasers for military applications. The acquisition was carried out through a joint company created for the purpose called HMS Laser, equally owned by Safran Electronics & Defense and MBDA. Founded in 1966, CILAS designs, develops, produces and sells laser products and optical solutions for military and civil applications.
March 5, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

McCarthy: Without budget growth, Army heads toward ‘collision course’
Jen Judson WASHINGTON — Without top-line growth in the U.S. Army's future budgets, the service is headed toward a “collision course,” Army Secretary Ryan McCarthy said March 4 at the McAleese Defense Programs Conference. The Army has already gone through two-and-a-half years of deep budget scrubs through its “night court” process, which seeks to find funding areas in the budget that don't align with the National Defense Strategy and the service's modernization efforts, and moves those dollars into accounts that meet its priorities. In the Army's first night court, the chief, secretary, vice chief and undersecretary presided over decisions — big and small, easy and tough — for roughly 600 programs, shifting $33 billion from programs across the fiscal 2020 through FY24 five-year plan. In FY20, the Army is investing $8.6 billion in modernization efforts and, across the next five years, investing a total of $57 billion, a 137 percent increase from the previous year's five-year plan. The Army found another roughly 80 programs to scale back or cancel in order to free up funding in FY21, but Army leadership has admitted it's getting harder and harder to find low-hanging fruit in the process. The Army is now in the process of conducting its night court for FY22 in order to try to find more money to align with its modernization goals. Officials will have to start making choices in terms of restructuring procurement accounts to begin the divestiture of current capabilities in the force to make room for future programs that will enter Low-Rate Initial Production (LRIP) in the comings years. But that may not be enough if the Army doesn't get an increased top line of 3 to 5 percent in future budget years, McCarthy said. “What is going to be a challenge for us in ‘22 and ‘23 when [modernization programs] start to mature, we have to make choices in this milestone process, you start buying LRIP tranches,” he said. At the same time the Army has to grow the force because its current ratio of dwell time to deployment time is 1:1 worldwide, McCarthy said. “If we don't get 3 to 5 percent growth in the out-years, there is a collision course if you keep growing the force and starting bringing in all these capabilities,” he said. “Choices will have to be made if we can't increase the top line in ‘22 and ‘23, so will that mean will we have to flatten end-strength? Do we tier the weapon systems that we bring into the formations,” McCarthy asked. “These are the choices that we are talking about, we are looking at and we are going to be prepared to make.” McCarthy referenced recent comments from Defense Secretary Mark Esper regarding the need to review combatant command demands and asked, “Can we reduce demand worldwide? ... Are we being efficient with every soldier, sailor, airman and marine that we send forward? Can the allies do better? Can we increase their capabilities that do more of the burden that is everything from investing as well as putting more boots forward in the form of deterrence?” McCarthy told reporters following his speech that if the demand doesn't come down there, "there is no trade space left even if you are going to kill weapon systems that we've had for 40 to 50 years and if you are successful with Congress in getting that done.” The Army is discussing the numbers it needs with the White House, McCarthy added, but noted that “this is an election year. This is tough. This is going to be a march for the next couple of months.” But McCarthy stressed, the Army will “continue to grow until we are forced with a really difficult, really another inflection point, if you will, downstream.” https://www.defensenews.com/land/2020/03/04/mccarthy-without-budget-growth-army-heads-toward-collision-course/

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