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December 1, 2020 | International, Land

BAE Systems gets $3.2 billion deal so British forces can reload

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LONDON – Munitions worth $3.2 billion (£2.4 billion) are to be supplied to the British military by BAE Systems over 15 years in a single-source deal announced by the Ministry of Defence Nov 30.

The program, known as Next Generation Munitions Solution (NGMS), will see BAE produce 39 different munitions for the armed services from five different sites across the UK.

Small-arms ammunition, mortars, tank shells, medium-caliber gun rounds and heavy artillery rounds are included in the delivery schedule which starts at the end of 2022.

The contract supersedes a similar £2 billion, 15-year contract known as “Munitions Acquisition, the Supply Solution,” which kicked off in 2008.

In return for guaranteed offtake of ammunition BAE implemented money-saving efficiencies and modernization of its facilities.

The MASS contract effectively halted a British munitions industry in decline for more than 20 years.

There are more than 400 munition types not included in the agreement, principally countermeasures, pyrotechnics and explosives, but also a number of other variants of small arms ammunition, medium-caliber and mortar products.

The deal covers 120 mm rifled tank shells for the Challenger 2 main battle tank but not its likely smooth-bore successor.

The Challenger 2 upgrade program led by the Rheinmetall-BAE joint company RBSL is due to go forward for MoD investment consideration around the end of the year.

The proposed munition solution, widely expected to include a new 120 mm smooth-bore cannon, will be recommended as part of a wider upgrade approval of the tank.

The outcome of the approval program will be subject to the delayed integrated defense review now expected to be released in early in 2021.

In a statement announcing the new munitions deal the MoD said BAE had identified about £400 million of savings and efficiency opportunities to be pursued up to 2038. The new agreement represents the same product portfolio currently supplied under the MASS deal.

The contract also includes flexibility to vary the volume of orders and allow general munitions products to be added or removed, depending on front-line requirements, said the statement.

Figures provided by MoD estimate BAE will annually produce approximately 70 million rounds of small-arms ammunition, 100,000 large-caliber rounds, 40,000 medium-caliber shells and 75,000 mortar rounds.

Part of the deal will see BAE invest £70 million refurbishing and upgrading munition manufacturing lines.

Included in BAE's investment is the establishment of a £2.5 million smart technology pilot factory at its Radway Green, northwest England, small-arms ammunition manufacturing site.

https://www.defensenews.com/global/europe/2020/11/30/bae-systems-gets-32-billion-deal-so-british-forces-can-reload/

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    NAVY Sikorsky Aircraft Corp., a Lockheed Martin Co., Stratford, Connecticut, is awarded a $478,605,019 firm-fixed-price modification (P00102) to a previously awarded contract (N0001914C0050). This modification exercises options for the procurement of five Lot Three low rate initial production Presidential Helicopters Replacement Program (VH-92A) aircraft, and associated interim contractor support, two cabin interior reconfiguration kits, support equipment, initial spares, and system parts replenishment. Work will be performed in Stratford, Connecticut (50%); Coatesville, Pennsylvania (36%); Owego, New York (10%); Patuxent River, Maryland (2%); Phoenix, Arizona (1%); and Quantico, Virginia (1%), and is expected to be completed in December 2023. Fiscal 2021 aircraft procurement (Navy) funds in the amount $478,605,019 will be obligated at time of award, none of which will expire at the end of the current fiscal year. 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Fiscal 2021 service cost center (Navy) $3,154,151 (82.12%); 2015 shipbuilding and conversion (Navy) $246,982 (6.43%); 2017 shipbuilding and conversion (Navy) $246,982 (6.43%); 2021 defense working capital fund (Navy) $84,895 (2.21%); 2021 other procurement (Navy) $42,474 (1.11%) 2019 shipbuilding and conversion (Navy) $37,996 (0.99%); and 2018 shipbuilding and conversion (Navy) $27,092.45 (0.71%) funding will be obligated at award. No contract funds will 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 Undersea Warfare Center Division, Keyport, Keyport, Washington, is the contracting activity. (N0025321C0004) DEFENSE LOGISTICS AGENCY US Foods, La Mirada, California, has been awarded a maximum $114,700,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for full-line food distribution. This was a competitive acquisition with two responses received. This is a five-year contract with no option periods. Locations of performance are California and Alaska, with a Feb. 4, 2026, ordering period end date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2021 through 2026 defense working capital funds. The contracting agency is the Defense Logistics Agency, Troop Support, Philadelphia, Pennsylvania (SPE300-21-D-3307). ARMY Oshkosh Defense LLC, Oshkosh, Wisconsin, was awarded a $61,002,554 firm-fixed-price contract for 1,081 Underbody Armor Kit upgrade kits for the Family of Medium Tactical Vehicles. Bids were solicited via the internet with one received. Work will be performed in Oshkosh, Wisconsin, with an estimated completion date of June 30, 2022. Fiscal 2019, 2020 and 2021 European reassurance initiative funds in the amount of $61,002,554 were obligated at the time of the award. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity (W56HZV-21-C-0084). Dyncorp International LLC, Fort Worth, Texas, was awarded a $42,000,000 modification (P00121) to contract W58RGZ-19-C-0025 for aviation maintenance services. Work will be performed in Afghanistan and Iraq, with an estimated completion date of Aug. 31, 2021. Fiscal 2021 operation and maintenance (Army) funds in the amount of $42,000,000 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Coastal Contractors Inc.,* Baton Rouge, Louisiana, was awarded a $9,450,839 firm-fixed-price contract for flood control of the Comite River. Bids were solicited via the internet with eight received. Work will be performed in Baton Rouge, Louisiana, with an estimated completion date of Apr. 8, 2022. Fiscal 2021 civil construction funds in the amount of $9,450,839 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-21-C-0005). Escal Institute of Advanced Technologies Inc., North Bethesda, Maryland, was awarded a $9,443,000 modification (P00004) to contract W911S0-19-D-0009 to provide training and certifications as required to verify and validate student proficiency in cybersecurity roles. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 5, 2022. U.S. Army Field Directorate Office, Fort Eustis, Virginia, is the contracting activity. Cottrell Contracting Corp., Chesapeake, Virginia, was awarded a $9,416,500 firm-fixed-price contract for maintenance dredging of Naval Submarine Base Kings Bay, Camden County, Georgia. Bids were solicited via the internet with two received. Work will be performed in Kings Bay, Georgia, with an estimated completion date of April 25, 2022. Fiscal 2021 operation and maintenance (defense-wide funds) in the amount of $9,416,500 were obligated at the time of the award. U.S. Army Corps of Engineers, Jacksonville, Florida, is the contracting activity (W912EP-21-C-0008). WASHINGTON HEADQUARTERS SERVICES Systems Planning and Analysis Inc., Alexandria, Virginia (HQ0034-21-F-0089), has been awarded a firm-fixed-price and time and materials contract in the amount of $34,891,509. This contract is to provide support to the Office of Industrial Policy in carrying out its mission to ensure robust, secure, resilient and innovative industrial capabilities within the Department of Defense. The contractor will provide program support for the Defense Production Act Titles I and III, Industrial Base Assessments, Industry Engagement/Outreach and Strategic Communications and Business Intelligence and Analytics. Work performance will take place at the Mark Center, Alexandria, Virginia; and the Pentagon, Washington, D.C. Appropriate fiscal 2021 operation and maintenance funds will be obligated at the award. The expected completion date is Feb. 6, 2026. Washington Headquarters Services, Arlington, Virginia, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2495622/source/GovDelivery/

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