Back to news

October 29, 2019 | International, Naval

After a leadership shakeup at General Dynamics, a murky future for submarine building

By: David B. Larter 

WASHINGTON — Submarine building, the pride of the U.S. Navy’s shipbuilding efforts over the past decade, is facing a mountain of uncertainty, a point underscored by the replacement of senior members of General Dynamics leadership, compounding delays with construction of the Virginia-class submarine and nagging questions about the quality of the work after a high-profile welding issue threatened to trip up the Columbia-class ballistic missile sub program at the starting line.

Adding to the uncertainty for General Dynamics, which operates the Electric Boat shipyard in Connecticut, are indications that profits from constructing Virginia-class subs may be slipping. And challenges in training new workers in the complex world of building subs as well as concerns that the Columbia program might negatively affect General Dynamics’ bottom line are impacting General Dynamics’ partner yard Huntington Ingalls Industries in Newport News, Virginia, as well as the U.S. Navy.

Furthermore, a contract for the significantly larger Block V Virginia-class submarine, expected to be one of the largest in the Navy’s history, has been repeatedly delayed amid disputes over labor rates, sources told Defense News. That contract is more than a year past due, according to Navy budget documents.

In September, General Dynamics pushed out Electric Boat President Jeffrey Geiger. Industry and Navy sources, speaking on the condition of anonymity, said Geiger’s replacement was the culmination of mounting frustration on the part of the Navy. That came to a head when quality control issues surfaced with missile tubes in production destined for the Virginia Payload Module, Columbia-class subs and the United Kingdom’s replacement ballistic missile sub.

Geiger’s ouster came on the heals of General Dynamics replacing long-time executive John Casey as head of the Marine Systems division when he retired earlier this year.

The shakeup, delays and lingering issues put the Navy and the submarine-building enterprise at a crossroads. It’s clear that the Navy’s efforts to ramp up production of its Virginia-class attack boats ahead of Columbia have encountered myriad issues and delays. But while delays may be acceptable for the Virginia program, the interconnected nature of submarine building means those delays could eek into a program that the Navy has for years insisted cannot be delayed any further: the replacement of its aging Ohio-class ballistic missile subs, part of the nuclear deterrent triad.

The Navy has said Columbia must be ready for its first patrol in 2031 to ensure the nation doesn’t fall below a dangerous threshold where retiring Ohio-class submarines leaving the country without an adequate number of boats to execute its deterrent strategy. But to head that off, the Navy may have reduce its expectations of the industrial base’s capacity to build submarines, said Bryan Clark, a senior fellow at the Center for Strategic and Budgetary Assessments think tank and a retired submarine officer.

“The Navy is going to have to reduce its appetite for submarine capacity while it gets the construction process in a better position,” he said. “All of the things we have seen in the past year in the submarine-building enterprise are the results of the ramped-up production levels and the challenges that EB [Electric Boat] faces in hiring more workers up in Connecticut.

“They’ve been growing capacity, investing in infrastructure; they’re trying to hire a bunch of workers and design engineers. [But] there just isn’t a large workforce of those kinds of people up there as opposed to in Hampton Roads or the Gulf Coast. So there are a lot of challenges in ramping up production to [increase] Virginia-class production and, in addition, starting Columbia and beginning the Virginia Payload Module-equipped Virginias, which is a 30 percent larger submarine.”

A bridge to Columbia

In March, Defense News reported that all the Virginia-class submarines under construction were between four and seven months behind schedule. Naval Sea Systems Command pointed to the cumulative effect of ramping up to building two Virginia-class submarines per year. In a statement, the service’s top acquisition official said the Navy was continuing to confront material, labor and shipyard infrastructure issues.

Labor issues in particular hit the Newport News yard, which told investors in a recent earnings call that profits had slipped by about 23 percent on the Virginia sub building because of delays associated with labor issues.

In the face of the mounting issues, the Navy should be willing to make difficult choices to get back on an even footing, Clark said.

“Are we going to make some tough choices and dial back submarine construction deliberately to make sure we can get Columbia started correctly?” he asked. “And that means maybe we slow down Virginia, maybe we go to one per year for at least a couple of years to catch up.”

Clark said the Navy should continue to fund two submarines per year but should expect that they will take longer to build while General Dynamics and Newport News stabilize their labor and parts issues.

Paring back submarine production is a tough pill to swallow for the Navy, as it’s been fighting for years to prevent a shortfall of attack submarines in the coming decade. The Navy expects its inventory of attack boats to drop from 52 to 42 by the late 2020s as Cold War-era Los Angeles-class attack subs retire.

Furthermore, there’s the question of whether scaling back production might invite a funding cut, which could make matters worse. The supplier and labor issues, after all, primarily stem from the 1990s when the Navy all but stopped buying submarines, which resulted in a contraction of the number of businesses that built submarine parts and a loss in skilled laborers who knew how to build them.

Less funding would likely have a detrimental effect on sub-building efforts, said Bill Greenwalt, a former Senate Armed Services Committee staffer.

“Under our current budget and appropriations process, slowing down — which likely implies cutting program funding — would exacerbate industrial base problems as it already has in the past due to lack of program demand,” Greenwalt said. “Congress and the Navy need to be prepared for industrial base surprises and seriously face the past problem of the underfunding of naval shipbuilding.”

“A flexible schedule and more realistic and flexible funding mechanisms will be needed to meet whatever industrial base challenges ... will inevitably arise,” he added. “In the near term we may even need to look at some of our allies’ capabilities to meet shortfalls and help us keep on schedule until we rebuild U.S. capacity.”

Greenwalt’s view tracks with that of General Dynamics, according to a source with knowledge of the company’s thinking on the difficulties it has faced. The company considers ramping up production on the Virginia-class sub as essential to building a sufficient labor force and supplier capacity so the resources are available to build Columbia class on schedule, the source said.

‘Two-hump camel’

The Navy’s top acquisition official, James Geurts, has similarly described the issue. On the possibility of building a third Virginia-class submarine in 2023, Geurts told the House Armed Services Committee’s sea power panel in March that it would benefit the Columbia-building effort.

“We can get some of the additional workforce trained up, get some more of the supplier base and get some of the supplier builds out of the way before Columbia gets here,” he said.

Officials everywhere seem to agree that the labor force is the most critical factor when it comes to getting submarine building on track. In an exit interview with Defense News in August, outgoing Chief of Naval Operations Adm. John Richardson said turnover at shipyards was a challenge but also an exciting chance to build a new generation of skilled labor.

“We’re asking a lot of the submarine industrial base right now to continue with Virginia, two to three per year including that payload module, and deliver Columbia,” Richardson said. “And the workforce is going through a transformation.

“The people who built and delivered the Virginia program, the Los Angeles program and Seawolf — those folks are retiring. We used to have this two-hump camel in terms of the demographics of the shipyard: You had the Cold Warriors and you had the post-9/11 folks. And that Cold War hump is gone. And I think that although it’s going through some friction right now, it’s really inculcating, indoctrinating and educating a brand-new workforce.”

Richardson also sounded a note of warning about work quality, saying that the managers overseeing the work for the submarine-building enterprise must be on top of their jobs.

“We’ve had some welding issues: We’ve got to be on that,” he said. “[It’s] a lot closer oversight as we educate this new team.”

Clarification: The story has been updated to better reflect the arguments surrounding the future of submarine building.

https://www.defensenews.com/naval/2019/10/28/after-a-leadership-shakeup-at-general-dynamics-a-murky-future-for-submarine-building/

On the same subject

  • House passes $983 billion spending package 226-203, bucking White House

    June 20, 2019 | International, Other Defence

    House passes $983 billion spending package 226-203, bucking White House

    By: Joe Gould WASHINGTON ― The Democratic-controlled House passed a $985 billion appropriations package for fiscal 2020 that aims to fund national security at $17 billion less than the White House requested, end the post-2001 war authorizations after eight months, pull military support in Yemen and defund the W76-2 nuclear warhead. The vote was 225-203, with seven Democrats voting with the Republican minority. Zero Republicans voted for the bill. It’s a salvo from Democrats in FY20 budget negotiations with the GOP-controlled Senate and White House, and the White House has threatened that President Donald Trump would veto the massive bill. Beyond the above provisions and others, the administration strongly objected to language meant to block Pentagon funds being applied to a wall on the southern border. The threat foreshadows pushback from the Senate and the White House, in part because both advocated for a $750 billion national defense budget, while the House-passed bill is consistent with a $733 billion national defense budget. (The House bill would fund the Pentagon alone at $8 billion less than the White House request.) The four-bill “minibus” contained the two largest of the 12 annual appropriations bills; the Labor, Health and Human Services, Education, and Related Agencies bill and the Defense bill. For the defense, it totaled $645.1 billion in base-defense funding, and $68.1 billion in the budget-cap-exempt wartime funding account. House Appropriations Committee Chairwoman Nita Lowey, D-N.Y., emphasized the package’s investments outside the Pentagon, including a 4 percent increase in State Department funding. “This bill rejects the administration’s unacceptable budget request and irresponsible policies and, rather, strives to uphold many bipartisan congressional priorities,” Lowey said when the bill was introduced. “America’s foreign policy is strongest when diplomacy, development and defense are well-funded and equally prioritized, as many of today’s global challenges cannot be addressed by military intervention alone.” Republicans have opposed the minibus as an empty exercise because Congress lacks a bipartisan deal to ease spending caps and avoid across-the-board sequestration cuts. Nor does the bill contain border wall funding sought by conservative Republicans. “Moving these bills as-is is a wasted opportunity because the bills are far from what the president has requested and will support,” said the House Appropriations Committee’s ranking member, Rep. Kay Granger, R-Texas. “Defense spending does not meet the request while nondefense spending greatly exceeds the request in current levels. This could lead to a veto and another government shutdown, something both [parties] agree would be devastating ― in addition to these funding concerns.” The White House issued a veto threat last week that spelled out its objections to provisions in the bill that would end the post-2001 war authorizations after eight months and pull military support in Yemen―and because the House parked less defense spending in the budget-cap skirting war fund. The language surrounding the authorization for the use of military force, Granger said, could jeopardize the Pentagon’s ability to conduct military operations worldwide. “It’s a bad policy that will force the DoD to unwind counterterrorism operations overseas if the Congress and the president cannot agree on a new authorization,” she said. To avoid another government shutdown, 12 appropriations bills must pass Congress and get the president’s signature by Oct. 1. Negotiations between the White House and lead lawmakers on a deal to ease budget caps has been ongoing, according to a statement last week by Senate Appropriations Committee Chairman Sen. Richard Shelby, R-Ala.. (The Senate Appropriations Committee hasn’t yet moved any of its bills.) Another likely sticking point in budget talks with the GOP-controlled Senate and the White House is the minibus’ bill’s prohibition on the Defense Department spending funds to implement its policy on open transgender service. The vote to approve an amendment that contained the prohibition broke mostly along party lines, 234-183. The amendment targets a March 12 memo that would largely bar transgender troops and military recruits from transitioning to another gender, and require most individuals to serve in their birth sex. The House defeated Republican amendments that would have added back $19.6 million for the W76-2 low-yield submarine-launched nuclear warhead and would have added back $96 million for “conventional missile systems” in the range of the Intermediate-Range Nuclear Forces Treaty. However, it also defeated a Democratic amendment that would have barred funding for research on the Long Range Standoff weapon. The bill was passed out of committee with language to restrict the Pentagon’s authority to transfer money between accounts to $1.5 billion ― a response from Democrats to the administration’s use of defense funds for Trump’s proposed border wall. Next week, the House is expected to take up a separate minibus that contains the Department of Homeland Security spending bill, which was at the heart of last year’s 35-day government shutdown. https://www.defensenews.com/congress/2019/06/19/house-passes-983-billion-spending-package-226-203-bucking-white-house/

  • Contract Awards by US Department of Defense - June 09, 2020

    June 10, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - June 09, 2020

    NAVY APTIM Federal Services LLC, Alexandria, Virginia, is awarded a $129,174,167 firm-fixed-price contract for the dismantlement and disposal of the Surface Ship Support Barge, a radiologically controlled Navy support facility. Work will be performed in Mobile, Alabama (65%); Norfolk, Virginia (25%); and Andrews, Texas (10%). This contract will accomplish engineering planning efforts, dismantlement, transport and disposal of the Surface Ship Support Barge. Work is expected to be complete by June 2023. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $129,174,167 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was competitively procured via Beta.Sam.gov website and one offer was received. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-20-C-4139). Lockheed Martin Corp., Rotary and Mission Systems, Moorestown, New Jersey, is awarded a $70,165,869 cost-plus-incentive-fee and cost-plus-fixed-fee modification to previously awarded contract N00024-18-C-5103 to exercise Option Year Two in support of Aegis development and test sites operations and maintenance. This contract combines purchases for the Navy (73.4%); and the governments of Japan, Republic of Korea and Norway (26.6%), under the Foreign Military Sales (FMS) program. Work will be performed in Moorestown, New Jersey. This option exercise is for the continued technical engineering, configuration management, associated equipment/supplies, quality assurance, information assurance and other operations and maintenance efforts required for the Aegis development and test sites. This contract modification will provide continuing site maintenance and planned improvements of the sites for Aegis combat system and Aegis weapon system upgrades to the U.S. Ship Ticonderoga CG-47 and U.S. Ship Arleigh Burke DDG-51 through the completion of Advanced Capability Build 20 and Technology Insertion 16, in addition to Aegis ballistic missile defense and FMS requirements. Work is expected to be complete by June 2021. Fiscal 2016 shipbuilding and conversion (Navy) funds; FMS Japan, Republic of Korea and Norway funds; 2020 research, development, test and evaluation (Navy) funds; 2020 research, development, test and evaluation funds; 2020 operations and maintenance funds; and fiscal 2020 other procurement (Navy) funds in the amount of $24,220,069 will be obligated at time of award. Funding in the amount of $1,886,754 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. PAE Applied Technologies LLC, Fort Worth, Texas, is awarded a $38,556,254 modification (P00100) to previously awarded cost reimbursable, cost-plus-fixed-fee contract N00421-14-C-0038. This modification exercises an option to extend services and adds hours in support of range engineering, and operations and maintenance for the Atlantic Test Range and Atlantic Targets and Marine Operations. Work will be performed in Patuxent River, Maryland, and is expected to be complete by December 2020. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $1,933,227; fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $1,577,000; fiscal 2020 research, development, test and evaluation (Defense-wide) funds in the amount of $982,810; fiscal 2019 research, development, test and evaluation (Defense-wide) funds in the amount of $110,000; and fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $55,000 will be obligated at the time of award, $3,620,227 of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity.   Nagamine Okawa Engineers Inc.,* Honolulu, Hawaii, is awarded $30,000,000 for an indefinite-delivery/indefinite-quantity, architect-engineering contract with a maximum amount of $30,000,000 for architect-engineer services and other projects at various Navy, Marine Corps and other government facilities within the Naval Facilities Engineering Command (NAVFAC), Hawaii, area of operations. All work on this contract will be performed in, but not limited to Hawaii (95%); and other South Pacific Islands (5%). The work to be performed will provide for architect-engineer services for structural projects with associated multi-discipline architect-engineer support services. The type of design and engineering services expected to be performed under this contract are primarily for request for proposal (RFP) documentation for design-bid-build structural projects with associated multi-discipline, architect-engineering support services for new construction, alteration, repair and installation of mechanical systems and associated facilities. Other design and engineering services may include, but are not limited to, design-build RFP documentation, engineering investigations/concept studies, functional analysis concept development/charrettes and post construction award services. Work is expected to be complete by June 2025. The term of the contract is not to exceed 60 months. No task orders are being issued at this time. Fiscal 2020 operations and maintenance (Navy)(O&M, N) contract funds for the minimum guarantee in the amount of $5,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be funded primarily with O&M, N funds. This contract was competitively procured via the Beta.Sam.gov website and two proposals were received. The NAVFAC, Honolulu, Hawaii, is the contracting activity (N62478-20-D-5038). Archer Western Federal JV, Chicago, Illinois, is awarded $26,515,000 for firm-fixed-price task order N69450-20-F-0702 under a multiple award construction contract for the Targeting and Surveillance System facility, Naval Air Station, Jacksonville, Florida. Work will be performed in Jacksonville, Florida, and provides for construction of a new +/- 49,000 square foot Targeting And Surveillance System facility that will accommodate avionics workload, personnel and equipment for the Joint Strike Fighter program. The facility includes areas for engineering and administrative personnel. Work is expected to be complete by November 2022. Fiscal 2020 military construction (Navy) contract funds in the amount of $26,515,000 are obligated on this award and will not expire at the end of the current fiscal year. Two proposals were received for this task order. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity (N69450-19-D-0907). General Dynamics NASSCO-Norfolk, Norfolk, Virginia, is awarded a $17,694,948 modification to previously awarded cost-plus award fee and cost-plus-incentive-fee contract N00024-16-C-4306 for the U.S. Ship Harry S Truman (CVN-75) fiscal 2020 extended continuous incremental availability. Work will be performed in Portsmouth, Virginia. An extended continuous incremental availability (ECIA) includes the planning and execution of depot-level maintenance, alterations and modifications that will update and improve the ship's military and technical capabilities. The fiscal 2020 U.S. Ship Harry S. Truman ECIA is comprised of 117 total work items. The nuclear aircraft carrier’s (CVN) private sector maintenance addresses the maintenance, repair and modernization efforts for CVN 68 Class home, ported-in and visiting the Hampton Roads, Virginia, area, as well as for selected non-nuclear propulsion plant repairs while coordinating with the Naval Supervising Activity, Norfolk Naval Shipyard (NNSY), to properly integrate their efforts with nuclear propulsion plant work conducted by NNSY. Work is expected to be complete by January 2021. Fiscal 2020 operations and maintenance (Navy); and fiscal 2020 other procurement (Navy) funding in the amount of $16,468,117 will be obligated at time of award, and funding in the amount of $17,694,948 will expire at the end of the current fiscal year. The Mid Atlantic Regional Maintenance Center, Norfolk, Virginia, is the administrative contracting activity (N00024-16-C-4306). DEFENSE LOGISTICS AGENCY I-Solutions Direct Inc., doing business as I-Solutions Group, Fort Washington, Pennsylvania, has been awarded a maximum $84,000,000 firm-fixed-price contract for commercial metal products. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is an 18-month bridge contract with no option periods. Locations of performance are Pennsylvania, Arkansas, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Missouri, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas and Wisconsin, with a Dec. 8, 2021, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE8E5-20-D-0006). Mechanix Wear, Inc.,* Valencia, California, has been awarded a maximum $7,415,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for Army combat-capacitive gloves. This was a competitive acquisition with six responses received. This is a one-year base contract with three one-year option periods. Locations of performance are California and Rhode Island, with a June 8, 2021, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1209). DEFENSE ADVANCED RESEARCH PROJECTS AGENCY SA Photonics Inc.,* Los Gatos, California, has been awarded a $16,361,123 cost-plus-fixed-fee contract for the Blackjack Track A (Payload) Phases 2 and 3 program. Work will be performed in Los Gatos, California (89%); and Redwood City, California (11%), with an estimated completion date of March 2021. Fiscal 2020 research and development funds in the amount of $16,130,000 are being obligated at the time of award. This contract is a competitive acquisition in accordance with the original broad agency announcement, HR001118S0032. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity (HR001120C0095). DEFENSE HEALTH AGENCY Kreative Technologies LLC, Fairfax, Virginia, was awarded a firm-fixed-price contract in the amount of $9,996,142 for enterprise information management (EIM) support. This contract provides non-personal services for operations, sustainment and engineering support of work-flows and capabilities utilizing agile methodology that will incorporate a more efficient and streamlined process to identify, develop and deploy system updates resulting in improved user experience, system performance and system availability. The contractor will also provide system administration and user support associated with software operation and maintenance, provide Tier III application and system support remotely, and provide "tiger team" on-site support as needed. The contract scope also includes the EIM sustainment and updates of non-production environments. The contract has a period of performance for 12 months and a transition out period for three months. The contract was awarded through the Small Business Administration 8(a) Business Development Program. The place of performance is Falls Church, Virginia. The Defense Health Agency, Enterprise Medical Services Contracting Division, Joint Base San Antonio, Texas, is the contracting activity (HT001520F0024). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2213629/source/GovDelivery/

  • Contract Awards by US Department of Defense - Aug 1, 2019

    August 2, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - Aug 1, 2019

    DEFENSE LOGISTICS AGENCY Tesoro Refining and Marketing Co., San Antonio, Texas (SPE602-19-D-0506, $348,692,953); BP Products North America Inc., Chicago, Illinois (SPE602-19-D-0514, $315,599,804); Par Hawaii Refining LLC, Houston, Texas (SPE602-19-D-0510, $271,274,321); Valero Marketing and Supply Co., San Antonio, Texas (SPE602-19-D-0504, $260,554,844); Equillon Enterprises LLC, doing business as Shell Oil Products, Houston, Texas (SPE602-19-D-0509, $228,126,037); BP West Coast Products LLC, Blaine, Washington (SPE602-19-D-0512, $157,502,370); U.S. Oil and Refining Co., Tacoma, Washington (SPE602-19-D-0513, $156,746,055); Petro Star Inc.,* Anchorage, Alaska (SPE600-19-D-0505, $110,836,555); Phillips 66 Co., Houston, Texas (SPE602-19-D-0515, $58,246,377); Epic Aviation LLC, Salem, Oregon (SPE602-19-D-0508, $38,905,276); and Sinclair Oil Corp.,* doing business as Sinclair, Salt Lake City, Utah, (SPE602-19-D-0507, $38,197,366), have each been awarded a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract under solicitation SPE602-19-R-0703 for various types of fuel. These were competitive acquisitions with 21 offers received. They are one-year contracts with a 30-day carryover. Locations of performance are Texas, Illinois, Washington, Alaska, Oregon, Utah, and the Rocky Mountain Region of the continental U.S., with an Oct. 30, 2020, performance completion date. Using customer is Defense Logistics Agency Energy. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia. Petro Star Inc.,* Anchorage, Alaska, has been awarded a maximum $52,630,968 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for JA1 jet fuel. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a one-year contract with a 30-day carryover. Location of performance is Alaska, with an Oct. 30, 2020, performance completion date. Using customer is Air Force. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE602-19-D-0517). Sysco Raleigh LLC, Selma, North Carolina, has been awarded a maximum $49,019,871 fixed-price with economic-price-adjustment, indefinite-quantity contract for full line food distribution. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a 286-day contract with no option periods. Location of performance is North Carolina, with a May 16, 2020, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2019 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-19-D-3230). Oshkosh Defense LLC, Oshkosh, Wisconsin, has been awarded a maximum $27,537,300 firm-fixed-price requirements contract for pneumatic tire wheel assemblies. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a three-year contract with no option periods. Locations of performance are Wisconsin and New Jersey, with a July 29, 2022, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2022 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-19-D-0130). (Awarded July 30, 2019) U.S. TRANSPORTATION COMMAND Crowley Logistics Inc., Jacksonville, Florida, has been awarded a contract modification, P00009, on contract HTC711-17-D-R003 in the estimated amount of $328,000,000. This modification provides continued surface transportation coordination services for the movement of freight within the continental U.S. and Canada under the Department of Defense Freight Transportation Services program to the Defense Logistics Agency and Defense Contract Management Agency. Work will be performed in the continental U.S. and in Canada. The period of performance is from Aug. 1, 2019, to July 31, 2020. Fiscal 2019 transportation working capital funds were obligated at award. This modification brings the total cumulative face value of the contract from $110,285,829 to $438,285,829. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. AIR FORCE Raytheon Co., Woburn, Massachusetts, has been awarded a $36,250,251, firm-fixed-price contract modification (P00014) to previously awarded contract FA8730-17-C-0010 for the Qatar Early Warning Radar (QEWR). This modification is for procurement and storage of obsolescent spares in support of QEWR sustainment. The modification brings the total cumulative face value of the contract to $1,094,776,076. Work will be performed in Woburn, Massachusetts, and is expected to be completed by August 2023. This modification involves 100% foreign military sales to the country of Qatar. Foreign Military Sales funds in the amount of $36,250,251 are being obligated at the time of award. The Air Force Life Cycle Management Center, Hanscom Air Force Base, Massachusetts, is the contracting activity. Summers Concrete Contracting Inc., Hahira, Georgia, has been awarded a ceiling $25,000,000 indefinite-delivery/indefinite-quantity contract for repair airfield pavements. This contract provides for repair or alteration of airport runways and taxiways construction requirements. Work will be performed at Moody Air Force Base, Valdosta, Georgia; and Sebring, Florida, and is expected to be completed by July 31, 2024. This award is the result of a competitive acquisition with three offers received. No funds are being obligated at the time of award. The 23d Contracting Squadron, Moody Air Force Base, Georgia, is the contracting activity (FA4830-19-D-A001). Verdis-Takisaki JV, Coeur d’Alene, Idaho (FA4620-19-D-A007); National Native American Construction Inc., Coeur d’Alene, Idaho (FA4620-19-D-A010); Global-Northcon JV, Hayden, Idaho (FA4620-19-D-A011); and Imperial Construction NW LLC, Wapato, Washington (FA4620-19-D-A012), have been awarded a combined, not-to-exceed $23,000,000 indefinite-quantity multiple award task order contract for design-build construction efforts. Work will be performed at Fairchild Air Force Base, Washington, and is to be expected to be complete by July 31, 2024. These awards are the result of a competitive acquisition and eight offers were received. Fiscal 2019 operation and maintenance funds in the amount of $500 are being obligated to each company at the time of award. The 92d Contracting Squadron, Fairchild Air Force Base, Washington, is the contracting activity. L3 Technologies Inc., Link Training & Simulation Division, Arlington, Texas, has been awarded a $10,411,380 cost-plus-fixed-fee contract task order modification (P00011) to the previously awarded FA8621-19-6251 task order for F-16 aircraft simulator training program services. This contract modification will provide aircraft concurrency requirements for the M7.3 Operation Flight Plan to deliver medium and high-fidelity simulation capability to train pilots for the F-16 aircraft platform. The modification brings the total cumulative face value of the contract to $28,440,800. Work will be performed at Arlington, Texas, and is expected to be completed by March 31, 2021. Fiscal 2019 research and development funds in the amount of $800,000 are being obligated at the time of award. The Air Force Life Cycle Management Center, Wright-Patterson AFB, Ohio, is the contract activity. University of Dayton Research Institute, College Park, Dayton, Ohio, has been awarded a $9,800,000 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract. This contract provides enhancement and improvement to the non-destructive evaluation capabilities for aerospace structures and components. This contract promotes discovery and provides increased accuracy, precision, reliability and optimization of the material state awareness of aerospace materials. Work will be performed at Wright-Patterson Air Force Base, Ohio, and is expected to be completed by Aug. 3, 2026. This award is the result of a competitive acquisition and three offers were received. Fiscal 2019 research, development, test and evaluation funds in the amount of $304,000 will be obligated at the time of award via task order 0001. The Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-19-D-5230). ARMY Kinder Brothers Excavating Inc.,* Dexter, Missouri (W912EQ-19-D-0009); SYTE Corp.,* Chicago, Illinois (W912EQ-19-D-0007); Randy Kinder Excavating Inc.,* Dexter, Missouri (W912EQ-19-D-0008); and C&M Contractors Inc.,* Doniphan, Missouri (W912EQ-19-D-0006), will compete for each order of the $50,000,000 firm-fixed-price contract for all plant, labor, materials and equipment for construction of relief wells, repairs to existing relief wells and construction of earthen berms. Bids were solicited via the internet with four received. Work locations and funding will be determined with each order, with an estimated completion date of Aug. 20, 2024. U.S. Army Corps of Engineers, Memphis, Tennessee, is the contracting activity. Sehlke Consulting LLC,* Arlington, Virginia, was awarded a $9,999,500 order-dependent contract for financial management support services. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of Aug. 9, 2024. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W91CRB-19-A-0001). P&S Construction Inc.,* North Chelmsford, Massachusetts, was awarded a $9,457,700 firm-fixed-price contract for construction of a small arms range at Westover Air Reserve Base, Massachusetts. Bids were solicited via the internet with two received. Work will be performed in Westover, Massachusetts, with an estimated completion date of Dec. 9, 2020. Fiscal 2016, 2017 and 2018 military construction funds in the amount of $9,457,700 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-19-C-0020). Nisou LGC JV LLC,* Detroit, Michigan, was awarded an $8,945,520 firm-fixed-price contract for construction of the aerial port facility at Grissom Air Reserve Base, Indiana. Bids were solicited via the internet with two received. Work will be performed in Grissom, Indiana, with an estimated completion date of Oct. 12, 2020. Fiscal 2015, 2017 and 2019 military construction funds in the amount of $8,945,520 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-19-C-0026). Navistar Defense LLC, Lisle, Illinois, was awarded a $7,766,045 firm-fixed-price contract for 4x4 cargo trucks, 6x6 general transport truck, 6x6 30 ton recovery wrecker and medium tactical vehicles general transport truck spares. Bids were solicited via the internet with one received. Work will be performed in Lisle, Illinois, with an estimated completion date of Sept. 27, 2020. Fiscal 2019 operations and maintenance, Army funds in the amount of $7,766,045 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-19-F-0455). NAVY Lockheed Martin, Mission Systems and Training, Baltimore, Maryland, is awarded $18,849,765 for cost-plus award-fee order N62786-19-F-0055 against the previously awarded basic ordering agreement N00024-15-G-2303 to provide engineering and management services for LCS-15 post shakedown availability. Lockheed Martin will provide support of the following: 62,462 man-hours level of effort; and to provide the work specification, pre-fabrication and material. Work will be performed in Moorestown, New Jersey (37%); Mayport, Florida (35%); Hampton, Virginia (14%); and Washington, District of Colombia (14%), and is expected to be complete by January 2021. Fiscal 2013 and 2019 shipbuilding and conversion (Navy); and fiscal 2019 other procurement (Navy) funding in the amount of $13,631,677 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding, Conversion and Repair, Bath, Maine, is the contracting activity. BAE Systems Land & Armaments LP, Minneapolis, Minnesota, is awarded an $8,411,293 cost-plus-fixed-fee delivery order for MK38 Gun Weapon System Repair Program support. This contract action is for labor, material and services required to support the Gun Weapon System Repair Program in pre/post testing, removal/installation, refurbishment, fleet technical assistance, maintenance, training and fleet modernization of MK 38 machine gun system. Work will be performed in Norfolk, Virginia (29%); San Diego, California (27%); Yokosuka, Japan (16%); Manama, Bahrain (7%); Rota Spain (7%); Everett, Washington (4%); Tacoma, Washington (4%); Pearl Harbor, Hawaii (4%); and Pascagoula, Mississippi (2%), and is expected to be complete by September 2021. Fiscal 2019 operations and maintenance (Navy); and fiscal 2019 weapons procurement (Navy and Coast Guard) in the amount of $1,050,000 will be obligated at the time of award, and $750,000 will expire at the end of the current fiscal year. This delivery order was solicited as a sole source under basic ordering agreement N00174-18-G-0001 in accordance with 10 U.S. Code 2304(c)(1). The Naval Surface Warfare Center, Indian Head, Explosive Ordnance Disposal Technology Division, Indian Head, Maryland, is the contracting activity (N00174-19-F-0420). Leidos Innovations Corp, Gaithersburg, Maryland, is awarded an $8,208,133 performance-based, indefinite-delivery/indefinite-quantity, firm-fixed-price contract for Micro-processor En-route Automated Radar Tracking System (MEARTS). The contract is for the acquisition of hardware, software, logistics and on-call help desk support for MEARTS. The contract includes a single five-year ordering period and one six-month option to extend services in accordance with Federal Acquisition Regulations (FAR) Clause 52.217-8. The option period, if exercised, would bring the cumulative value of this contract to an estimated $8,737,303. Work will be performed in Charleston, South Carolina, and is expected to be completed by January 2025. An order utilizing fiscal 2019 operations and maintenance (Navy) funds in the amount of $605,690 will be obligated at time of award. Contract funds will expire at the end of the current fiscal year. This requirement was not competitively procured because it is a sole-source acquisition pursuant to the authority of 10 U.S. Code 2304(c)(1) only one Responsible Source FAR Subpart 6.302-1). Naval Information Warfare Center Atlantic, Charleston, South Carolina, is the contracting activity (N65236-19-D-1001). EFW Inc., Fort Worth, Texas, is awarded $7,228,544 for firm-fixed-price delivery order N68335-19-F-0006 against a previously issued basic ordering agreement (N00019-17-G-0014). This delivery order procures 15 Fast Characterization Tools, 15 Helmet Kit Modification Fixtures, 15 Ready Room Testers and 20 Night Vision Goggle Modification Kits for the V-22 Color Helmet Mounted Display System. In addition, this delivery order provides drawing packages and the upgrade of five Fast Characterization Tools. Work will be performed in Haifa, Israel (70%); and Fort Worth, Texas (30%), and is expected to be completed in October 2020. Fiscal 2017 aircraft procurement (Air Force); and fiscal 2019 procurement defense-wide funds in the amount of $7,228,544 will be obligated at time of award, $3,496,053 of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity. DEFENSE INTELLIGENCE AGENCY CoSolutions EIS JV LLC,* Sterling, Virginia, was awarded a labor hour contract (HMM402-19-F-0098) with an estimated total value of $10,000,148 to support intelligence training in Europe. Work will be performed at the Regional Joint Intelligence Training Facility at RAF Molesworth, United Kingdom; Patch Barracks, Stuttgart, Germany; and, on a temporary duty basis, at other locations in Europe and within the continental U.S. The expected completion date is July 31, 2024, if all options are exercised. Fiscal 2019 operations and maintenance funds in the amount of $1,713,015 are being obligated at time of award. This contract was solicited through a small business set aside and one offer was received. The Virginia Contracting Activity, Washington, District of Columbia, is the contracting activity.   *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1923647/source/GovDelivery/

All news