Are OTAs the Thing of the Future?

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  August 14, 2019 | International, Aerospace

  Big A&D Firms Seem To Be Merging Or Acquiring—Where’s Honeywell?

  Michael Bruno United Technologies (UTC) and Raytheon are working hard to convince shareholders to approve their mega-merger. L3 Harris Technologies is riding high after its heritage companies consolidated recently. Industry insiders are making bets on who is next. But Honeywell International has been conspicuously absent in all the major merger and acquisition (M&A) moves in recent years. Why? Honeywell Aerospace chief executive Tim Mahoney recently explained how his company still plans to take advantage of the wave of consolidation hitting aerospace and defense. “We've looked,” Mahoney told an Aug. 7 investor conference. “We've never thought—and we continue to not think—that scale is a major discriminator and a differentiator within our marketplace. Having said that, you need to be large enough to be relevant, and we have been at that point. But scale is not something that is attractive or makes you more attractive from an OEM perspective or from an aftermarket perspective. We've continued to differentiate ourselves relative to value-added offerings.” Mahoney spoke during a live interview with analyst Sheila Kahyaoglu at the Jefferies Global Industrials Conference. While Honeywell has remained active with bolt-on acquisitions—including the July 24 announcement it will buy autopilot specialist TruTrak Flight Systems for an undisclosed amount—the company has not consummated a prime- or OEM-level deal and even walked away from talks with UTC in 2016. That same year, Honeywell did buy warehouse automation specialist Intelligrated for $1.5 billion. And Honeywell leaders have long assured Wall Street that they keep their eyes open in A&D, as Mahoney reaffirmed. But they have complained that valuations were too rich to be conducive to dealmaking. Mahoney also indicated that Honeywell could take advantage of the consolidation trend in another way. “We've actually gone back and looked at when there has been very significant consolidations, or two companies coming together,” he explained. “That has actually helped us from a market share perspective, because typically when there's a large-scale integration of two companies, those two companies become inwardly focused, which is understandable. “As a result, we've been opportunistic relative to that,” he continued. “If you look at our cockpit systems business or some of those areas where we've competed with some of the companies that have consolidated, our auxiliary power unit business, you would see that we've actually grown disproportionately larger during those time periods.” One area Honeywell is now focusing on growing is its new big-data analytics software Forge, which the company recently rolled out for airlines and other industrial companies (Aviation DAILY, June 6). While the software expectedly looks to provide aircraft operators with predictive maintenance, fuel optimization and other flight operation benefits, Honeywell is looking to add ground operations through an expanding experiment with Swissport, one of the world's largest airport ground service providers. Last December, Honeywell and Swissport signed a five-year agreement initially to apply Honeywell's GoDirect Ground Handling product used across Swissport's global operation base. Ben Driggs, president of Honeywell Connected Aircraft, told the investor conference that the goal is to achieve faster airplane turnarounds in the 20-40% of the time the aircraft is on the ground. He said the partnership is first being implemented in Kansai International Airport (KIX) for Osaka, Japan, with Miami, Basel, Switzerland and “numerous” other Swissport airports planned. https://aviationweek.com/defense/big-ad-firms-seem-be-merging-or-acquiring-where-s-honeywell

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  December 14, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

  Contract Awards by US Department of Defense - December 13, 2018

  NAVY The Boeing Co., St. Louis, Missouri, is awarded a $92,361,661 not-to-exceed firm-fixed-price, cost-plus-fixed-fee contract for Phase 1 integrated logistics support for 22 F/A-18E and 6 F/A-18F Super Hornet aircraft in support of the government of Kuwait under the Foreign Military Sales program. Work will be performed in St. Louis, Missouri (85 percent); Fort Walton Beach, Florida (8 percent); New Orleans, Louisiana (5.5 percent); China Lake, California (.5 percent); Patuxent River, Maryland (.5 percent); and Gulf Port, Mississippi (.5 percent), and is expected to be completed in December 2020. Foreign Military Sales funds in the amount of $38,792,947 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to 10 U.S. Code. 2304(c)(1). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-19-C-0033). CRL Technologies Inc., Alexandria, Virginia, is awarded an $84,327,079 cost-plus-fixed-fee indefinite-delivery/indefinite-quantity contract for lead systems integrator contractor support services to perform engineering, technical and project management for a wide variety of new and existing programs and platforms in support of the Naval Air Warfare Center Aircraft Division's AIRWorks organization. Work will be performed in Lexington Park, Maryland, and is expected to be completed in December 2023. No funds will be obligated at time of award; funds will be obligated on individual orders as they are issued. This contract was competitively procured via an electronic request for proposals; five offers were received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-19-D-0026). Envisioneering Inc.,* Alexandria, Virginia (N00173-19-D-2002); R&M Technology Solutions LLC,* Fredericksburg, Virginia (N00173-19-D-2003); Technology Service Corp.,* Arlington, Virginia (N00173-19-D-2005); Remcom Inc.,* State College, Pennsylvania (N00173-19-D-2004); and Cutlass Systems Engineering LLC,* Laurel, Maryland (N00173-19-D-2001), are awarded indefinite-delivery/indefinite-quantity, multiple award contracts for Modeling, Analysis, Research, and Simulation (MARS). The cumulative face value on this multiple award contract is a combined $48,400,000. This action does not include options. Work will be performed at the Naval Research Laboratory, Washington, District of Columbia (90 percent); and depending on each task order, one of the following contractor's facility - Alexandria, Virginia; Fredericksburg, Virginia; Arlington, Virginia; State College, Pennsylvania; Laurel, Maryland (10 percent). This contract has a five-year ordering period and is expected to be completed Dec. 11, 2023. No funds will be obligated at the time of award. Funds will be obligated as task orders are issued. This contract is one of five contracts being competitively procured under a request for proposal #N00173-16-R-JH03 for which six proposals were received. The Naval Research Laboratory, Washington, District of Columbia, is the contracting activity. General Dynamics Mission Systems, Pittsfield, Massachusetts, is awarded $35,034,283 for modification P00001 to a previously awarded cost-plus-incentive-fee, cost-plus-fixed-fee contract (N00030-19-C-0003) for research and development, and sustainment efforts for the U.S. SSBN Fire Control Sub-system (FCS), the U.K FCS and the U.S. SSGN Attack Weapon Control System, including training and support equipment and U.S./UK Shipboard data system. Work will be performed in Pittsfield, Massachusetts (98 percent); Kings Bay, Georgia (1 percent); and Dahlgren, Virginia (1 percent), with an expected completion date of September 2019. Fiscal 2019 other procurement (Navy) funds in the amount of $23,665,513; fiscal 2019 operations and maintenance (Navy) funds in the amount of $5,666,207; fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $2,857,813, and U.K. funds in the amount of $2,844,750 are being obligated on this award. Funds in the amount of $5,666,207 will expire at the end of the current fiscal year. Strategic Systems Programs, Washington, District of Columbia, is the contracting activity. Jacobs Government Services Co., Fort Worth, Texas, is awarded a $25,000,000 firm-fixed-price modification to increase the maximum dollar value of a previously awarded indefinite-delivery/indefinite-quantity contract (N62742-17-D-0003) for Architect-Engineering (A-E) services for design, engineering, specification writing, cost estimating, and related services at various locations under the cognizance of Naval Facilities Engineering Command (NAVFAC) Pacific. The work to be performed provides for services that include, but are not limited to, design and engineering services for the preparation of plans; specifications utilizing NAVFAC SpecsIntact program: cost estimates utilizing the micro-computer aided cost estimating system; second generation cost estimating system: and other services such as design and engineering services for functional analysis and concept development, request for proposal (RFP) documentation for design-build projects, RFP documentation, and plans and specifications for design-bid-build projects. After award of this modification, the total cumulative contract value will be $55,000,000. Work will be performed predominantly in Tinian (54 percent); Guam (25 percent); Hawaii (19 percent); and Diego Garcia (1 percent); and other areas within the Naval Facilities Engineering Command (NAVFAC) Pacific area of responsibility (1 percent), and is expected to be completed by August 2022. No funds will be obligated at time of award; funds will be obligated on individual task orders as they are issued. Task orders will be primarily funded by customer reimbursable funds. The Naval Facilities Engineering Command, Pacific, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity. General Electric Aviation, Lynn, Massachusetts, is awarded $11,626,714 for cost-plus-fixed-fee delivery order N0042119F0231 against a previously issued basic ordering agreement (N0042119G0001). This order provides for engineering and engine system improvement in support of the F414 engine component improvement program. Work will be performed in Lynn, Massachusetts, and is expected to be completed in December 2019. Fiscal 2019 research, development, test and evaluation; and fiscal 2019 aircraft procurement (Navy) funds in the amount of $10,817,305 are being obligated on this award, none 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. EDO LLC, Amityville, New York, is awarded $8,661,189 for modification P00010 to a previously awarded cost-plus-fixed-fee, firm-fixed-price, cost reimbursable contract (N00019-17-C-0029). This modification provides for the procurement of 77 BRU-55A/A aircraft bomb ejector racks for the F/A-18A/B/C/D/E/F aircraft. Work will be performed in Amityville, New York, and is expected to be completed in June 2021. Fiscal 2019 aircraft procurement (Navy) funds in the amount of $8,661,189 will be obligated at time of award, none 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. ARMY DRS Sustainment Systems Inc., St. Louis, Missouri, was awarded a $48,741,559 cost-plus-fixed-fee contract for technical support services. One bid was solicited with one bid received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 12, 2023. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-19-D-0006). Lockheed Martin Corp., Orlando, Florida, was awarded a $40,372,494 cost-plus-fixed-fee contract for analysis, design, development, integration, test, help desk, product improvements, fielding, software development, and exercise support. One bid was solicited with one bid received. Work will be performed in Orlando, Florida, with an estimated completion date of Dec. 12, 2020. Fiscal 2018 and 2019 research, development, test and evaluation; operations and maintenance Army; and other procurement, Army funds in the combined amount of $31,199,618 were obligated at the time of the award. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-19-C-0012). General Atomics Aeronautical, Poway, California, was awarded a $40,000,000 modification (P00029) to contract W58RGZ-17-C-0035 for services on the Gray Eagle unmanned aircraft system. Work will be performed in Poway, California, with an estimated completion date of June 15, 2019. Fiscal 2019 operations and maintenance Army funds in the amount of $25,000,000 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. The RAND Corp., Santa Monica, California, was awarded a $21,898,593 cost-plus-fixed-fee contract for research and analytic projects. One bid was solicited with one bid received. Work will be performed in Santa Monica, California, with an estimated completion date of Sept. 30, 2020. Fiscal 2019 research, development, test and evaluation funds in the amount of $18,974,861 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W91CRB-19-F-0038). AIR FORCE The Boeing Co., Fort Walton Beach, Florida, has been awarded an $11,746,605, cost-plus-fixed-fee modification (P00014) to exercise Option Three of contract FA8509-16-C-0001 for the integrated sustainment support of the AC‐130U gunships. This modification provides for the continuation of services for the development, modification, sustainment, and maintenance of the AC‐130U gunship. Work will be performed at Fort Walton Beach, Florida, and deployed locations in Afghanistan and Kuwait, and is expected to be completed by Dec. 31, 2019 for the negotiated option. This award is the result of a sole-source acquisition and is incrementally funded. Fiscal 2019 operations and maintenance funds in the amount of $6,000,000 are being obligated at the time of award. Total cumulative face value of the contract modification is $11,746,605. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity. DEFENSE FINANCE AND ACCOUNTING SERVICES Kearney & Company PC, Alexandria, Virginia, is being awarded a labor-hour contract option with a maximum value of $8,799,484 for audit services of the Marine Corps General Fund financial statements. Work will be performed in Alexandria, Virginia, with an expected completion date of Dec 31, 2019. This contract is the result of a competitive acquisition for which four quotes were received. The contract had a 15-month base period plus three individual one-year option periods, with a maximum value of $38,372,103. This award brings the total cumulative value of the contract to $29,328,747. Fiscal 2019 operations and maintenance, Navy funds in the amount of $8,799,484 are being obligated at the time of this option award. The Defense Finance and Accounting Service, Contract Services Directorate, Columbus, Ohio, is the contracting activity (HQ0423-16-F-0114). DEFENSE LOGISTICS AGENCY UPDATE: Kipper Tool Co., Gainesville, Georgia (SPE8EC-19-D-0035), has been added as an awardee to the multiple-award contract for commercial construction equipment, issued against solicitation SPE8EC-17-R-0005 announced April 5, 2017. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1713264/

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  July 3, 2019 | International, Aerospace

  These 4 technologies are big problems for US military space

  By: Nathan Strout A recent report highlights the fact that the commercial space sector is an increasingly important part of the military's efforts in space, but there are places where industry falls short. The national security space arena is a niche market, characterized by low production runs paired with a need for high-quality products. That combination makes it a difficult area for the commercial sector. While national security space increasingly relies on industry to provide components for space vehicles, the fact remains that in some key areas there are no domestic suppliers for critical technologies, leaving the United States dependent on foreign suppliers. Here are four such technologies singled out in a recent report on the United States military's industrial base: Solar cells According to the report, the commercial sector is not investing in the research and development needed to improve solar cells, which are used to power satellites. Businesses have maxed out the capacity for triple-junction solar cells, but do not appear capable of pushing forward to four- or five-junction solar cell technology. The Pentagon also wants solar cells that are able to withstand more radiation for longer than current products on the market. Improving solar cells to get the same or more power out of even slightly smaller panels could have a major impact when it comes to launching a satellite into space, meaning that reducing solar panel size is highly valuable. Tube amplifiers Starting in the 1990s, the domestic supplier market share for traveling-wave tube amplifiers — electronic devices used to amplify radio frequency signals to high power — dropped from 50 percent to just 12 percent. While that market has shown a slight recovery, the presence of heavily subsidized companies like Thales in France make it difficult for American companies to compete. Gyroscopes Precision gyroscopes are used in spacecraft to determine altitude and are essential to providing inertial navigation systems. According to the Department of Defense, there is only one domestic supplier of hemispherical resonating gyroscopes, resulting in long lead times — the report claims that the company can only produce one to two units per month. Fiber optic gyroscopes fair better with three domestic suppliers currently manufacturing them, but those companies are themselves vulnerable to overseas supply issues with their subcomponents. Infrared detectors Just one foreign manufacturer produces the substrates necessary for space infrared detectors, and the Pentagon warns that a disruption of any more than a few months of production of the substrates could negatively impact the quality and completion of American satellites. Because of this, the U.S. government has used a Defense Production Act of 1950 provision that allows it to offer economic incentives to either develop, sustain or expand domestic production of technology critical to national defense, and an Industrial Base Analysis and Sustainment program is in the works to support the remaining two American foundries for one type of substrate. https://www.c4isrnet.com/battlefield-tech/space/2019/07/02/these-4-technologies-are-big-problems-for-us-military-space/