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April 30, 2020 | International, Aerospace

Boeing Defense to Surpass Commercial Side For First Time In More Than a Decade

But that's no cakewalk as new Air Force One and KC-46 tanker eat into the company's cash.

Updated, April 30, 2020, with a U.S. Air Force statement.

For the first time in 12 years, Boeing executives expect the company's defense and space unit to outperform its commercial airplane business, which is reeling from coronavirus and 737 Max losses.

Boeing's defense business has not outperformed its commercial side since 2008, when the commercial market was still recovering from post-9/11 declines and U.S. defense spending spiked during the wars in Iraq and Afghanistan.

The prediction comes on the back of pre-existing problems in the Boeing Defense, Space & Security division. The company's defense unit took a $1 billion hit in the first quarter of 2020, adding to the growing list of financial woes for the company trying to dig itself out of a massive hole.

“This year ... the defense business will probably be bigger than the commercial business,” Boeing CEO David Calhoun said during a call with Wall Street analysts. “That will probably hold for a while.”

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Additionally, executives said Wednesday that Boeing would lose $827 million on its work building KC-46 aerial refueling tankers and $168 million on the new Air Force One 747s that will fly the president, according to executives and regulatory filings. It's the latest black eye for the tanker project, which has cost the planemaker more than $4 billion over the past nine years. However, it is the first cost increase on the high-profile Air Force One project, which President Donald Trump personally negotiated with former Boeing CEO Dennis Muilenburg. Boeing began work converting two 747 jetliners into the unique Air Force One configuration in January before the coronavirus pandemic forced many workers out of the office.

“As we've had folks working virtually, and particularly on the engineering side — as well as that's gone — it's certainly experienced some inefficiencies that has caused us to reevaluate our estimate to complete those efforts,” Boeing CFO Greg Smith, said of the Air Force One project during a Wednesday afternoon call with reporters.

“The team has been doing a great job managing the program and executing very well on many fronts, but this we could not offset in the quarter as a result of COVID,” he said. “The program remains on schedule and ... continuing to execute, but we're looking for opportunities obviously to mitigate any further risk that we may have as a result of COVID.”

The terms of the Air Force One contract require Boeing, not taxpayers, to pay for any cost increases during the development of the plane, which the military calls a VC-25B. Despite the coronavirus-related issues, Ann Stefanek, an Air Force spokeswoman, said the project remains on track.

“As planned in the baseline schedule, the next phase of modification is on course to begin in June 2020,” Stefanek said in an emailed statement. “To maintain current schedule, Boeing and the VC-25B program office adopted maximum use of virtual tools, most notably to close Critical Design Review in March 2020 and conduct a modification readiness review in April 2020.”

As for the tanker, $551 million in cost increases stem from a deal reached between the Air Force and Boeing requiring the company to fix the complicated camera system used when refueling other aircraft. Most of the remaining $276 million is the result of coronavirus-related factory closures in Washington state where the tanker is built, and a “cost shift” resulting from slowing production of other commercial manufacturing.

“I do believe that that program now is exactly where it needs to be,” Calhoun said of the KC-46. “We're going to finish well. Importantly our customer is going to feel like we have finished well and we've delivered a product that is second to none. I do believe that even the tanker future is significantly brighter than the one we've experienced up until now.”

Calhoun also touted the company's development work. Although he did not mention any projects by name, Boeing is in the early stages of testing two new aircraft — the T-7A pilot training jet and MQ-25 refueling drone.

“Our development programs at the early stages are all looking quite good. We're really not off plan on anything and usually by now we have a snip that we might be. I feel pretty good about the risk profile of our defense business despite the difficulties that we've attempted to overcome in just the last couple of years.”

The same can't be said of the company's commercial airliner and aircraft repair businesses. Boeing is planning to cut 10 percent of its 160,000 employees through voluntary layoffs, attrition and involuntary layoffs.

The coronavirus has driven a substantial blow to the storied 104-year-old aerospace and defense company, which had already been reeling from the fallout of deadly 737 Max crashes in October 2018 and March 2019. Passenger air travel has fallen to record lows prompting airlines to cancel flights, ground aircraft, and defer buying new planes.

Boeing in late March temporarily stopped making commercial and military aircraft — including the tanker and the Navy's P-8 submarine hunter — in the Seattle-area, a COVID-19 hotbed. It also shut down its military assembly lines in Philadelphia for the Chinook and MH-139 Grey Wolf helicopters, and the tilt-rotor Osprey. Those factories have since reopened. A shuttered 787 Dreamliner factory in Charleston, South Carolina, is expected to reopen next week.

Now all eyes — including at the Pentagon — are watching to see how Boeing manages tens of thousands of employees on its complex assembly lines with new social distancing procedures in place. If successful, the model could become a blueprint for other U.S. manufacturers.

“They have allowed me to share their practices more broadly with industry to make sure that anything that is working for them to either be safer or get back to work, that that's something that can be shared with all,” Will Roper, head of Air Force acquisition, said Wednesday.

Boeing began the year with hopes of fixing its troubled 737 Max and restoring public confidence in the world's largest planemaker. Unable to deliver the unflyable Max to the airlines, it stopped building them in early January as it began running out of places to park them. Photos showed planes carefully aligned next to one another on tarmacs and even in employee parking lots.

There's still no formal timetable for getting the Max flying again, although executives are hopeful regulators will approve a number of fixes in the coming months and that it can begin delivering 737 Max aircraft to airlines in the third quarter.

https://www.defenseone.com/business/2020/04/boeing-defense-surpass-commercial-side-first-time-more-decade/165020/

On the same subject

  • Battelle To Explore Artificial Intelligence, Neural Interfaces with DARPA Award

    July 10, 2019 | International, Other Defence

    Battelle To Explore Artificial Intelligence, Neural Interfaces with DARPA Award

    COLUMBUS, Ohio--(BUSINESS WIRE)--Battelle is combining years of brain-computer interface (BCI) projects, such as NeuroLife®, with its expertise in machine learning and artificial intelligence under a new award from the federal government's forward-thinking government agency, the Defense Advanced Research Projects Agency (DARPA). The award is part of DARPA's Artificial Intelligence Exploration program called Intelligent Neural Interfaces. Using terabytes of neural data gathered in the past five years during NeuroLife sessions, Battelle Senior Data Scientist David Friedenberg and his team will build new decoding algorithms to make neural interfaces more robust over long periods of time. The BCI systems typically rely on a decoder that monitors brain activity and then translates it into actions—in the case of NeuroLife, those signals are sent to a special sleeve that uses electrodes to stimulate muscles to evoke hand movement. However, the decoders require significant and time-consuming calibration to learn the mapping between the brain data and the user's intended action. In June, the Battelle team began work on a $1 million, 18-month project that will try to solve longstanding problems with decoder optimization and maintenance while improving accuracy and robustness. To accomplish this goal, Battelle will develop a hybrid approach for stable long-term neural decoding using end-to-end deep neural network decoders to learn optimal features from the raw electrode recordings. In addition, using third-wave AI approaches, Battelle will develop models that account for changing context and continuously adapt accordingly. This allows for adjusting both the features and the decoder on-the-fly during normal system use to counteract non-stationarities and instabilities in the signal without requiring the user to intervene and recalibrate the system. The next evolution of BCIs will occur as the systems move from the lab into the real lives of users. “We want these systems to require less training and be more robust to interruptions and interference,” said Friedenberg. “We want to develop optimal decoders that automatically and continuously adapt to each individual and the BCI they're using.” About Battelle Every day, the people of Battelle apply science and technology to solving what matters most. At major technology centers and national laboratories around the world, Battelle conducts research and development, designs and manufactures products, and delivers critical services for government and commercial customers. Headquartered in Columbus, Ohio since its founding in 1929, Battelle makes the world better by commercializing technology, giving back to our communities, and supporting science, technology, engineering and mathematics (STEM) education. For more information, visit www.battelle.org. https://www.businesswire.com/news/home/20190710005082/en

  • Contract Awards by US Department of Defense - September 20, 2018

    September 21, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - September 20, 2018

    DEFENSE LOGISTICS AGENCY United Technologies Corp., East Hartford, Connecticut, has been awarded a maximum $2,460,000,000 modification (P00024) exercising the five-year option period of a five-year base contract (SPE4AX-15-D-9436), with one five-year option period for the Defense Logistics Agency to supply the Air Force depot level repairables and consumable parts. The modification brings the total cumulative face value of the contract to $4,930,000,000 from $2,460,000,000. This is a fixed-price prospective redetermination, multiple-year requirements contract. The location of performance is Connecticut, with a Sept. 26, 2023, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2018 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Richmond, Virginia. American Purchasing Services LLC, doing business as American Medical Depot, Miramar, Florida, has been awarded a maximum $49,500,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for hospital equipment and accessories. This was a competitive acquisition with 52 responses received. This is a five-year contract with no option periods. Location of performance is Florida, with a Sept. 19, 2023, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2018 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-18-D-0012). Accent Controls Inc.,* Kansas City, Missouri, has been awarded a maximum $7,694,857 modification (P00055) exercising the fourth one-year option period of a one-year base contract (SP3300-14-C-5005), with four one-year option periods for warehousing and distribution support services. This is a fixed-price incentive firm, cost-reimbursement contract. This was a small business set-aside acquisition with five offers received. Locations of performance are Missouri and Florida, with a Sept. 30, 2019, performance completion date. Using customer is Defense Logistics Agency. Type of appropriation is fiscal 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Distribution, New Cumberland, Pennsylvania. ARMY Hensel Phelps Construction Co., Austin, Texas, was awarded a $143,158,000 firm-fixed-price contract for Bureau of Engraving and Printing Western Currency facility expansion project. Bids were solicited via the internet with two received. Work will be performed in Fort Worth, Texas, with an estimated completion date of Jan. 11, 2022. Fiscal 2018 non-appropriated funds in the amount of $143,158,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Fort Worth, Texas, is the contracting activity (W9126G-18-C-0061). Colt's Manufacturing Co. LLC, West Hartford, Connecticut, was awarded a $57,722,819 firm-fixed-price Foreign Military Sales (Jordan, Morocco, Afghanistan, Senegal, Tunisia and Pakistan) contract for procurement of up to 10,000 additional M4 and M4A1 5.56mm carbine rifles. One bid was solicited with one bid received. Work will be performed in West Hartford, Connecticut, with an estimated completion date of Sept. 20, 2019. Fiscal 2018 foreign military sales funds in the amount of $57,722,819 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-18-F-0115). J. Kokolakis Contracting Inc., Bohemia, New York, was awarded a $52,494,000 firm-fixed-price contract for renovation of Grant Barracks building. Bids were solicited via the internet with two received. Work will be performed in West Point, New York, with an estimated completion date of Sept. 30, 2019. Fiscal 2018 military construction funds in the amount of $52,494,000 were obligated at the time of the award. U.S. Army Corps of Engineers, New York, New York, is the contracting activity (W912DS-18-C-0015). AECOM Energy & Construction Inc., Greenwood Village, Colorado, was awarded a $40,648,775 modification (P00005) to contract W912P5-17-C-0007 for lock chamber replacement, foundation preparation for both the land wall and river wall, and construction of the upstream river wall. Work will be performed in Chattanooga, Tennessee, with an estimated completion date of Jan. 1, 2020. Fiscal 2018 inland waterway trust funding and civil works funds in the amount of $40,648,775 were obligated at the time of the award. U.S. Army Corps of Engineers, Nashville, Tennessee, is the contracting activity. Raytheon/Lockheed Martin Javelin JV, Tucson, Arizona, was awarded a $27,595,202 modification (P00119) to Foreign Military Sales (Australia, Estonia, Lithuania, Turkey, Taiwan and Ukraine) contract W31P4Q-13-C-0129 for Javelin weapons system full-rate production. Work will be performed in Tucson, Arizona, with an estimated completion date of Aug. 31, 2021. Fiscal 2018 other procurement, Army funds in the amount of $27,595,202 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. R8I Cabrera Remediation and Construction LLC,* Elizabeth, Colorado, was awarded a $25,000,000 cost-plus-fixed-fee contract for labor, equipment, operators, supervision, supplies, materials and incidentals necessary in providing continued support of environmental remediation program. 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 Sept. 19, 2023. U.S. Army Corps of Engineers, St. Louis, Missouri, is the contracting activity (W912P9-18-D-0023). Weeks Marine Inc., Covington, Louisiana, was awarded a $19,884,400 firm-fixed-price contract for maintenance pipeline dredging. Bids were solicited via the internet with one received. Work will be performed in Houston, Texas, with an estimated completion date of July, 7, 2019. Fiscal 2014 and 2018 operations and maintenance Army; and general construction funds in the combined amount of $19,884,400 were obligated at the time of the award. U.S. Army Corps of Engineers, Fort Worth, Texas, is the contracting activity (W9126G-18-C-0073). Bering Straits Technical Services LLC, Anchorage, Alaska, was awarded a $13,335,173 firm-fixed-price contract for operations, maintenance, and sustainment of training areas. 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 Sept. 19, 2022. 413th Combat Support Battalion, Fort Wainwright, Alaska, is the contracting activity (W912D0-18-D-0008). Cray Inc., Seattle, Washington, was awarded a $12,500,000 firm-fixed-price contract to increase the processing capability of the current Cray XC 40 High Performance Supercomputer and purchase of 2083 additional nodes compatible with the existing system architecture. Bids were solicited via the internet with one received. Work will be performed in Vicksburg, Mississippi, with an estimated completion date of Oct. 31, 2018. Fiscal 2018 other procurement, Army funds in the amount of $12,500,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Vicksburg, Mississippi, is the contracting activity (W912HZ-18-C-0027). KZF Design Inc.,* Cincinnati, Ohio, was awarded a $10,000,000 firm-fixed-price contract for architect-engineering services. Bids were solicited via the internet with 23 received. Work locations and funding will be determined with each order, with an estimated completion date of Sept. 19, 2023. U.S. Army Corps of Engineers, Norfolk, Virginia, is the contracting activity (W91236-18-D-0009). Messer Construction Co., Dayton, Ohio, was awarded an $8,650,000 firm-fixed-price contract for design and replacement of a process cooling tower (Building 18 Complex). Bids were solicited via the internet with two received. Work will be performed in Wright-Patterson Air Force Base, Ohio, with an estimated completion date of June 30, 2020. Fiscal 2017 and 2018 research, development, test and evaluation funds in the amount of $8,650,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-18-C-0032). NAVY Sikorsky Aircraft Corp., a Lockheed Martin Co., Stratford, Connecticut, is awarded $58,395,297 for firm-fixed-price delivery order N0001918F0567 against a previously issued basic ordering agreement (N00019-14-G-0004). This delivery order provides for the procurement of 866 interim spare parts necessary to support the repair and maintenance of CH-53K low-rate initial production, Lot 2 configuration aircraft. Work will be performed in Stratford, Connecticut (26 percent); Longueuil, Quebec, Canada (10 percent); Redmond, Washington (9 percent); Cudahy, Wisconsin (5 percent); various locations within the continental U.S. (42 percent); and various locations outside the continental U.S. (8 percent), and is expected to be completed in January 2021. Fiscal 2018 aircraft procurement (Navy) funds in the amount of $58,395,297 will be obligated at time of award, none of which will expire at the end of the fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. The Boeing Co., St. Louis, Missouri, is awarded a $40,323,606 modification to a previously awarded firm-fixed-price contract (N00019-17-C-0003) for the procurement of aircraft armament equipment in support of 12 F/A-18E/F and 14 EA-18G Lot 40 and 41 aircraft for the Navy. Work will be performed in Meza, Arizona (26 percent); St. Louis, Missouri (20 percent); Grand Rapids, Michigan (15 percent); El Segundo, California (11 percent); Grove, Oklahoma (6 percent); Minneapolis, Minnesota (4 percent); Placentia, California (4 percent); and various locations within the continental U.S. (14 percent), and is expected to be completed in November 2022. Fiscal 2016 and 2017 aircraft procurement (Navy) funds in the amount of $40,323,606 are obligated at time of award, $18,258,354 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Summit Technologies Inc., Winter Park, Florida (N00189-18-D-Z075); Analytic Services Inc., Falls Church, Virginia (N00189-18-D-Z076); The Tauri Group, Alexandria, Virginia (N00189-18-D-Z077); Information International Associates, Oak Ridge, Tennessee (N00189-18-D-Z078); and Battelle Memorial Institute, Columbus, Ohio (N00189-18-D-Z079), are awarded a combined estimated $27,866,679 multiple award of cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contracts that will include terms and conditions for the placement of both cost-plus-fixed-fee and firm-fixed-price task orders to provide professional services in the areas of chemical, biological, radiological and nuclear defense and countering weapons of mass destruction operational and risk analysis. The contracts will run concurrently and will include a 60-month base ordering period. Work will be performed at various contractor locations throughout the U.S. (85 percent) and percentage of work at each of those locations cannot be determined at this time. Work will also be performed at government facilities in Arlington, Virginia (15 percent). The base ordering period of the contract is expected to be completed by September 2023. Fiscal 2018 research, development, test, and evaluation (Navy) funds in the amount of $50,000 will be obligated ($10,000 on each of the five contracts to fund the contracts' minimum amounts), and funds will expire at the end of the current fiscal year. This contract was competitively procured for the award of multiple contracts pursuant to the authority set forth in Federal Acquisition Regulation 16.504. The requirement was solicited through the Federal Business Opportunities website, with five offers received. Naval Supply Systems Command Fleet Logistics Center Norfolk, Contracting Department Philadelphia, Pennsylvania, is the contracting activity. L-3 Communications EOTech Inc., Ann Arbor, Michigan, is awarded a $23,637,320 firm-fixed-price, indefinite delivery/indefinite quantity contract for the procurement of Miniature Aiming System – Day Optics close quarter combat sights and clip-on magnifiers in support of U.S. Special Operations Command. Work will be performed in Ann Arbor, Michigan, and is expected to be completed by September 2028. Fiscal 2018 procurement (Defense-wide) funding in the amount of $308,570 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured pursuant of 10 U.S. Code 2304(a). This contract was competitively procured via the Federal Business Opportunities website, with four offers received. The Naval Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity (N00164-18-D-JQ26). TFS-APTIM JV,* Wasilla, Alaska, is awarded a $21,445,996 firm-fixed-price contract for construction of a fuel truck offload facility at Andersen Air Force Base, Guam. The basic project components include the fuel truck offload facility and associated piping and equipment. Additional supporting infrastructure includes a building for a generator and electrical service, petroleum, oil, and lubricants fuel truck parking, and site improvements. Work will be performed in Yigo, Guam, and is expected to be completed by December 2019. Fiscal 2018 military construction (Defense-wide) contract funds in the amount of $21,445,996 are obligated on this award, of which $3,696,512 will expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website, with one proposal received. The Naval Facilities Engineering Command, Marianas, Guam, is the contracting activity (N40192-18-C-1300). Rolls-Royce Corp., Indianapolis, Indiana, is awarded a not-to-exceed $17,599,557 for modification P00008 to a previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contract (N00019-15-D-0033). This modification exercises an option to procure T56-A-427A engines, power section modules and reduction gearbox modules for the E-2D aircraft. Work will be performed in Indianapolis, Indiana, and is expected to be completed in September 2019. No funds will be obligated at time of award. Funds will be obligated on individual delivery orders as they are issued. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Lockheed Martin Rotary and Mission Systems, Manassas, Virginia, is being awarded a $16,310,246 cost-plus-incentive-fee, firm-fixed-price contract for AN/BVY-1 Integrated Submarine Imaging System (ISIS) Technical Insertion 20-24 production and engineering services. The ISIS provides visual and other capabilities for Navy submarines. This contract includes options which, if exercised, would bring the cumulative value of this contract to $753,086,000. Work will be performed in Manassas, Virginia (66 percent); Chantilly, Virginia (18 percent); Marion, Massachusetts (10 percent); and Newport, Rhode Island (6 percent), and is expected to be completed by September 2028. Fiscal 2018 other procurement (Navy) funding in the amount of $250,000 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with one offer received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-18-C-6258). Coffman Specialties Inc., San Diego, California, is awarded $15,845,000 for firm-fixed-price task order N6247318F5362 under a previously awarded multiple award construction contract (N62473-15-D-2442) for airfield pavement repairs at March Air Reserve Base. The work to be performed provides for repairs to the portland concrete cement on Runway 14/32 Keel, Taxiway A and Taxiway C. The airfield areas must be repaired to facilitate use by currently assigned KC-135, C-17 and other transient aircraft. Adjacent asphalt concrete and airfield lighting may be impacted. Work will be performed in Moreno Valley, California, and is expected to be completed by October 2020. Fiscal 2018 operations and maintenance (Air Force Reserve) contract funds in the amount of $15,845,000 are obligated on this award and will expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity. General Dynamics Mission Systems, Pittsfield, Massachusetts, is awarded $12,880,531 for modification P00027 to a previously awarded cost-plus-incentive-fee, cost-plus-fixed-fee contract (N00030-16-C-0005), for sustainment of the U.S. and United Kingdom (UK) SSBN Fire Control System, the U.S. SSGN Attack Weapon Control System, including training and support equipment. Also included is the Missile Fire Control for the U.S. Columbia-class and UK Dreadnought-class Common Missile Compartment program development, through first unit UK production, and Strategic Weapon Interface Simulator. Work will be performed in Pittsfield Massachusetts (90.5 percent); Bremerton, Washington (3.6 percent); Kings Bay, Georgia (2.7 percent); Dahlgren, Virginia (1 percent); Cape Canaveral, Florida (0.9 percent); Portsmouth, Virginia (0.9 percent); and the United Kingdom (0.4 percent), with an expected completion date of Sept. 30, 2023. Fiscal 2018 research, development, test and evaluation funds in the amount of $2,944,140; United Kingdom funds in the amount of $1,015,493; and fiscal 2018 operations and maintenance (Navy) funds in the amount of $498,006 are being obligated on this award. Funds in the amount of $498,006 will expire at the end of the current fiscal year. Subject to the availability of funding, fiscal 2019 operations and maintenance (Navy) funds in the amount of $7,192,842; and United Kingdom funds in the amount of $1,230,050 will be obligated. Funds in the amount of $7,192,842 will expire at the end of fiscal 2019. Strategic Systems Programs, Washington, District of Columbia, is the contracting activity. FlightFab Inc.,* Baltimore, Maryland, is awarded a $12,620,604 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the procurement of solid waste processing equipment for naval ships. This contract provides production, testing and delivery of solid waste processing equipment in the form of plastic shredders, metal glass shredders, large pulpers, small pulpers and control valves for small and large pulpers. Work will be performed in Baltimore, Maryland. This action will contain a five-year ordering period and is expected to be completed by September 2023. Fiscal 2018 shipbuilding and conversion (Navy) funding in the amount of $423,825 will be obligated immediately after contract award via the first delivery order and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with two offers received. The Naval Surface Warfare Center Philadelphia Division, Philadelphia, Pennsylvania, is the contracting activity (N64498-18-D-4010). Alliant Techsystems Operations LLC, Northridge, California, is awarded a $12,072,734 ceiling-priced indefinite-delivery/indefinite-quantity contract for the procurement of up to 60 Common Munitions Built-In Test Reprogramming Equipment test sets; up to 22 ADU-891(V)1/E adaptor units; up to one lot of spares; and up to two ADU-891(V)3/E adaptor units in support of the Navy, Air Force, and the governments of Morocco, Belgium, Australia, Japan, and Oman. Work will be performed in Northridge, California, and is expected to be completed in May 2020. Fiscal 2018 research, development, test and evaluation (Navy and Air Force); fiscal 2016 missile procurement (Air Force); fiscal 2018 operation and maintenance (Navy); fiscal 2018 other procurement (Navy); and fiscal 2016 weapons procurement (Navy), as well as foreign military sales funds in the amount of $10,021,938, will be obligated at time of award, $2,600,972 of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to Federal Acquisition Regulation 6.302-1. The Naval Air Warfare Center Weapons Division, China Lake, California, is the contracting activity (N6893618D0037). APTIM Federal Services Inc., Alexandria, Virginia, is awarded a $12,022,779 firm-fixed-price modification to previously awarded contract (N62473-17-D-0006) to increase the maximum dollar value of a firm-fixed-price contract task order for the Parcel G Radiological Characterization at Hunters Point Naval Shipyard. The work to be performed provides new data to replace suspect radiological removal action data used to support a radiological unrestricted release recommendation for the sanitary sewer and storm drain lines, and impacted former building sites in Parcel G. After award of this modification, the total cumulative task order value will be $18,395,960. Work will be performed in San Francisco, California, and is expected to be completed by February 2020. Fiscal 2018 base realignment and closure environmental, (Navy) contract funds in the amount of $12,022,779 are obligated on this award and will not expire at the end of the current fiscal year. The Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity. Huntron Inc.,* Mill Creek, Washington, is awarded an $11,956,849 firm-fixed-price, indefinite-delivery/indefinite quantity contract for Model 32 test instruments, accessory kits and transit cases. Work will be performed in Mill Creek, Washington, and is expected to be completed by September 2023. Fiscal 2018 other procurement (Navy); fiscal 2018 shipbuilding and conversion (Navy); fiscal 2018 Navy working capital funding; fiscal 2018 operations and maintenance (Homeland Security/Coast Guard); and foreign military sales funding in the amount of $137,228 will be obligated at time of award, of which Navy working capital funding in the amount of $29,097 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 Newport, Newport, Rhode Island, is the contracting activity (N66604-18-D-H800). Pacific Commercial Services LLC,* Kapolei, Hawaii, is awarded a maximum amount $10,000,000 indefinite-delivery/indefinite-quantity contract for all services necessary for the final treatment/disposal of hazardous waste in accordance with all local, state, and Federal regulations, to include Department of Defense (DOD) component directives within the Naval Facilities Engineering Command (NAVFAC) Pacific area of responsibility (AOR). The work to be performed provides for services that shall include all necessary personnel, including applicable subcontractors, transportation, packaging and equipment to remove and properly dispose of hazardous and non-hazardous wastes. The contractor is required to meet all Department of Transportation requirements to include packaging of the wastes. The contractor must also comply with all Occupational Safety and Health Administration and DOD safety regulations and procedures, including State of Hawaii regulations and procedures. No task orders are being issued at this time. Work will be performed at various Navy and Marine Corps facilities and other government facilities within the NAVFAC Pacific AOR, including, but not limited to Hawaii (75 percent); Guam (15 percent); and other DOD locations within the NAVFAC Pacific AOR (10 percent). The term of the contract is not to exceed 60 months with an expected completion date of September 2023. Fiscal 2018 operations and maintenance (Navy) contract funds 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 primarily funded by operations and maintenance (Navy) funds. This contract was competitively procured via the Federal Business Opportunities website, with one proposal received. The Naval Facilities Engineering Command Pacific, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity (N62742-18-D-1801). Raytheon Co., El Segundo, California, is awarded a not-to-exceed $8,127,897 for a ceiling-priced, undefinitized contract action delivery order N00383-18-F-HA04 under previously awarded basic ordering agreement (N00383-15-G-003H) for the repair of 193 units across weapon repairable assemblies used in support of the F-18 active electronically scanned array radar system. Work will be performed in Forest, Mississippi, and will be completed by September 2019. Fiscal 2018 working capital funds (Navy) in the amount of $6,095,923 will be obligated at time of award, and will not expire at the end of the current fiscal year. This contract was a sole-source pursuant to the authority set forth in 10 U.S. Code 2304 (c)(1), in accordance with Federal Acquisition Regulation 6.302-1. The requirement was posted to the Federal Business Opportunities website and the Navy Electronic Commerce Online website, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity. AIR FORCE Pacific Defense Solutions LLC, Kihei, Hawaii, has been awarded a $39,894,065 cost-reimbursement type contract for spacecraft object tracking and characterization capabilities. This contract award is the result of a competitive acquisition and five offers were received. Fiscal 2018 research, development, test and evaluation funds in the amount of $ 3,601,646 will be obligated at the time of award. Work will be performed in Kihei, Hawaii, and is expected to be completed December 2023. Air Force Research Laboratory, Kirtland Air Force Base, New Mexico is the contracting activity (FA9451-18-C-0035). The Johns Hopkins University Applied Physics Laboratory LLC, Laurel, Maryland, has been awarded a $23,848,171 indefinite-delivery/indefinite-quantity contract with cost-plus-fixed-fee completion task order. The contractor will provide the technical and program support of Tactical Space and small satellite portfolio's core competencies and mission lifecycle to include support of the mission phases from concept through design, implementation, operations, and transition of space assets. Work will be performed in Laurel, Maryland, and is expected to be completed Sept. 29, 2023. Fiscal 2018 research and development funds in the amount of $500,000 are being obligated at time of award. This award is the result of a sole-source acquisition and one offer was received. Air Force Research Laboratory, Kirtland Air Force Base, New Mexico, is the contracting activity (FA9453-18-D-0018 TASK ORDER FA9453-18-F-0007). The Boeing Co., St. Louis, Missouri, has been awarded a $15,186,972 modification (P00042) to contract FA8634-16-C-2653 for APG-82 Radar Modernization Program test requirements document. This contract provides for test requirements documents that lay the foundation for organic depot repair. Work will be performed in St. Louis, and is expected to be completed by Dec. 31, 2020. Fiscal 2016 and 2017 procurement funds in the amount of $15,186,972 are being obligated at the time of award. Total cumulative face value of the contract is $1,363,368,877. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. (Awarded Sept. 17, 2018) International Business Machines Corp., San Jose, California, has been awarded a $14,863,208 cost-reimbursable contract for NorthPole software/hardware. This contract provides for the study, design, development, implementation, test, integration, document and delivery of the software and hardware specification for NorthPole, the next generation neural inference machine. Work will be performed in San Jose, California, and is expected to be completed by June 20, 2019. This award is the result of a competitive acquisition, and two offers were received. Fiscal 2017 research, development, test and evaluation funds in the amount of $893,208; and fiscal 2018 research, development, test and evaluation funds in the amount of $13,970,000 are being obligated at the time of award. Air Force Research Laboratory Rome, New York, is the contracting activity (FA8750-18-C-0015). Honeywell International Inc., Phoenix, Arizona, has been awarded a $10,080,902 firm-fixed-price contract for Jet Fuel Starter repair components for the RC-135 aircraft. This contract provides the remaining stock of Jet Fuel Starter components necessary to sustain the RC-135 fleet through the year 2040. Work will be performed in Phoenix, Arizona, and is expected to be complete by Dec. 31, 2021. This award is the result of a sole-source acquisition. Fiscal 2018 operations and maintenance funds in the amount of $10,080,902 are being obligated at the time of award. The 645th Aeronautical Systems Group, Wright Patterson Air Force Base, Dayton, Ohio, is the contracting activity (FA8620-18-C-4004). DEFENSE COMMISSARY AGENCY EMR Inc., Niceville, Florida, is awarded $15,990,000 for a firm-fixed-price contract for an addition/alteration to an existing commissary at Naval Air Station Pensacola, Florida. The contract is for a 539 calendar day period based on the issuance of the notice to proceed which is expected in November 2018. Offers were solicited via full and open competition, and three offers were received. The contracting activity is the Defense Commissary Agency, Enterprise Acquisition Division, Construction Design Branch, Joint Base San Antonio, Lackland, Texas (HDEC03-18-C-0003). MISSILE DEFENSE AGENCY L.C. Wright Inc.,* McLean, Virginia, is being awarded an $8,497,407 competitive firm-fixed-price contract with a two-year base value of $3,384,136 for Protocol Support. Protocol professionals provide support for the director and general officer/Senior Executive Service members that are geographically dispersed throughout the U.S. The work will be performed in the National Capital Region; Dahlgren, Virginia; Huntsville, Alabama; Fort Greely, Alaska; Vandenberg Air Force Base, California; Colorado Springs, Colorado; and other locations as directed, with an estimated completion date of October 2023. This contract was competitively procured via publication on the Federal Business Opportunities website with three proposals received. Fiscal 2018 research, development, test and evaluation funds in the amount of $223,000 are being obligated at time of award. The Missile Defense Agency, Huntsville, Alabama, is the contracting activity (HQ0147-18-R-0007). U.S. SPECIAL OPERATIONS COMMAND Hardwire LLC, Pocomoke City, Maryland, has been awarded an estimated $8,000,000 indefinite-delivery, indefinite-quantity, firm-fixed-price contract (H92403-18-D-0007) for the purchase of Special Operations Forces personal equipment advanced requirements (SPEAR) soft body armor ballistic inserts in support of U.S. Special Operations Command (USSOCOM) procurement division. Fiscal 2018 operations and maintenance funds in the amount of $100,000 are being obligated at the time of award. The majority of work will be performed in Pocomoke City, and work is expected to be completed by September 2023. This contract was awarded through full and open competition with six proposals received. USSOCOM, Tampa, Florida, is the contracting activity. DEFENSE THREAT REDUCTION AGENCY Raytheon Technical Services Company LLC, Dulles, Virginia, has been awarded a $7,542,049 modification #17 to previously awarded contract HDTRA1-11-D-0007, Task Order 12 Weapons of Mass Destruction Proliferation Prevention Program on the Jordan Border Security Project. The modification brings the total cumulative face value of the contract to $58,317,910.57 from $50,775,861.57. Work will be performed in Jordan, with an expected completion date of Nov. 30, 2020. This contract involves fiscal 2018 Cooperative Threat Reduction funds in the amount of $2,675,182 are being obligated at time of award. The Defense Threat Reduction Agency, Fort Belvoir, Virginia, is the contracting activity. WASHINGTON HEADQUARTERS SERVICES DirectViz Solutions LLC, Chantilly, Virginia, is being awarded a $7,429,544 firm-fixed-price contract. This contract will to provide Joint Service Provider with technical, analytical, management, and professional support services for Identity Protection Management Services. Work will be performed at the Pentagon, Mark Center, and Crystal City, Virginia, with an expected completion date of Sept. 29, 2022. Fiscal 2018 operations and maintenance funds in the amount of $7,429,544 are being obligated at time of award. This contract was competitively procured, with three proposals received. The Washington Headquarters Services, Acquisition Directorate, Arlington, Virginia, is the contracting activity (HQ0034-17-C-0093). *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1641072/source/GovDelivery/

  • Contract Awards by US Department of Defense - June 10, 2020

    June 11, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - June 10, 2020

    ARMY General Dynamics Land Systems, Sterling Heights, Michigan, was awarded a $2,477,329,768 fixed-price-incentive contract for the production of Stryker Double V-Hull A1 engineering change proposal vehicles. 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 April 30, 2027. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity (W56HZV-20-D-0005). Lockheed Martin Corp., Grand Prairie, Texas, was awarded a $1,042,250,000 modification (P00001) to contract W31P4Q-20-C-0023 for incidental services, hardware, facilities, equipment, and all technical, planning, management, manufacturing, and testing efforts to produce Phased Array Tracking Radar to Intercept on Target Advanced Capability-3 missiles. Bids were solicited via the internet with one received. Work will be performed in Huntsville, Alabama; Camden, Arkansas; Chelmsford, Massachusetts; Grand Prairie, Texas; and Lufkin, Texas, with an estimated completion date of Oct. 31, 2024. Fiscal 2020 missile procurement, Army; and Foreign Military Sales (Bahrain, Germany, Poland, Qatar, Romania, Republic of Korea, United Arab Emirates) funds in the amount of $1,042,250,000 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Richard Group LLC,* Glenview, Illinois (W912QR-20-D-0026); Iron Mike Construction,* Centennial, Colorado (W912QR-20-D-0027); and AMI & LGC JV LLC,* Andover, Kansas (W912QR-20-D-0028), will compete for each order of the $45,000,000 firm-fixed-price contract for construction services for the Great Lakes and Ohio River Division mission boundaries. Bids were solicited via the internet with 15 received. Work locations and funding will be determined with each order, with an estimated completion date of June 9, 2023. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity. Seres-Arcadis SB JV LLC,* Charleston, South Carolina, was awarded a $9,625,000 firm-fixed-price contract to perform optimized remediation for the Air Force. Bids were solicited via the internet with six received. Work will be performed at Joint Base Andrews, Maryland, with an estimated completion date of June 9, 2029. Fiscal 2020-2029 operations and maintenance, Army funds in the amount of $9,625,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Baltimore, Maryland, is the contracting activity (W912DR-20-C-0011). NAVY General Dynamics Mission Systems, Pittsfield, Massachusetts, is awarded a $104,214,429 cost-plus-incentive-fee, cost-plus-fixed-fee, and cost-no-fee contract (N00030-20-C-0003) for fiscal 2020-2023 Columbia (US01) and Dreadnought ballistic missile submarine class development, production and installation requirement. Work will be performed in Pittsfield, Massachusetts (90%); the United Kingdom (6%); Quonset Point, Rhode Island (3%); and Groton, Connecticut (1%). Work is expected to be complete by November 2024. Fiscal 2020 shipbuilding and conversion (Navy) funds in the amount of $26,390,000; United Kingdom funds in the amount of $10,727,082; and fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $2,210,541 are obligated on this award, and no funds will expire at the end of the current fiscal year. This contract is being awarded to the contractor on a sole-source basis under 10 U.S. Code 2304(c)(1) and four were previously synopsized on the Federal Business Opportunities website. Strategic Systems Programs, Washington, D.C., is the contracting activity. BAE Systems, Information and Electronic Systems Integration Inc., Greenlawn, New York, is awarded a $58,738,453 firm-fixed-price, indefinite-delivery/indefinite-quantity contract. This contract provides for the manufacture, test and delivery of 239 Mode 5 capable RT-1763C/D AN/APX-111(V) combined interrogator transponders and 397 spare shop replaceable assemblies for the F/A-18 Super Hornet series and Boeing EA-18G Growler warfare aircraft for the Navy and the government of Canada. Work will be performed in Greenlawn, New York (84%); and Austin, Texas (16%), and is expected to be complete by December 2025. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was not competitively procured pursuant to Federal Acquisition Regulation 6.302-1. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-20-D-0002). Cardno – Amec Foster Wheeler JV, Charlottesville, Virginia, is awarded $50,000,000 for a firm-fixed-price, indefinite-delivery/indefinite-quantity, architect-engineering contract with a maximum amount of $50,000,000 for Marine Corps (USMC) facility assessments utilizing the BUILDER Sustainment Management System at various USMC installations worldwide. No task orders are being issued at this time. Work will be performed at various USMC facilities worldwide: North Carolina (31%); Japan (25%); California (22%); Hawaii (7%); Virginia (5%); South Carolina (4%); Georgia (3%); Arizona (2%); and Republic of Korea (1%). The work to be performed provides for condition assessments of facilities approximately 20 million square feet and greater annually and BUILDER is utilized for major building component systems, data input, data analysis and interpretation, remote entry database and web-based BUILDER. It is also used for assessment and management training; other knowledge-based sustainment management system facility assessments and training; other specialized engineering assessments and studies for site facilities; conventional or deficiency-based facility assessments and training; life-cycle, space utilization and functionality assessments; and short and long range maintenance planning. Work is expected to be complete by June 2025. Fiscal 2020 operations and maintenance (Marine Corps) (O&M, MC) contract funds 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 primarily funded by O&M, MC. This contract was competitively procured via the Navy Electronic Commerce Online website and four proposals were received. The Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity (N62473-20-D-0615). Communications and Power Industries, Palo Alto, California, is awarded a $43,798,135 firm-fixed-price requirements contract for the repair of continuous wave illuminator traveling wave tubes in support of the Aegis Combat System. Work will be performed in Palo Alto, California, and is expected to be complete by June 2025. The contract includes a five-year base period with no options. Annual working capital funds (Navy) will be obligated as individual task orders are issued and funds will not expire at the end of the current fiscal year. One company was solicited for this sole-source requirement under authority 10 U.S. Code 2304 (c)(1), and one offer was received. The Naval Supply Systems Command, Weapon Systems Support, Mechanicsburg, Pennsylvania, is the contracting activity (N00104-20-D-VD01). Machine Tools USA Inc.,* Mathews, Virginia (N68936-20-D-0014); Machine Tool Marketing Inc.,* Bixby, Oklahoma (N68936-20-D-0015); and Pacific IC Source,* Yucaipa, California (N68936-20-D-0016), are awarded $25,000,000 for indefinite-delivery/indefinite-quantity contracts in support of the Naval Air Warfare Center Weapons Division. Work will be performed at the contractor's locations. These contracts provide various types of plant and laboratory tools, analytical and diagnostic equipment, work holding devices and peripheral equipment for conventional and computer numerically controlled equipment in support of advanced technology products for the Energetics Department. The estimated aggregate ceiling for all contracts is $25,000,000, with the companies having an opportunity to compete for individual orders. Work is expected to be completed in June 2025. No funds are being obligated at time of award; funds will be obligated on individual orders as they are issued. These contracts were competitively procured via an electronic request for proposals and three offers were received. The Naval Air Warfare Center Weapons Division, China Lake, California, is the contracting activity. ETM-Electromatic Inc.,* Newark, California, is awarded a $9,500,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract with a ceiling of $9,500,000 for the procurement of supplies and engineering services required for the modulator procurement, other spare parts and services for repairs and upgrades for ETM High Power Modulators. Work will be performed in Newark, California (75%); Crane, Indiana (8.4%); Palo Alto, California (8.3%); and Rancho Cordova, California (8.3%). These modulators are used to simulate operating conditions so microwave devices can be evaluated outside of their normal systems. These modulators allow the operator to safely and accurately evaluate a microwave device in a lab-controlled environment. The use of the microwave devices is critical in maintaining the radars aboard Navy ships in operational status. Work is expected to be complete by June 2025. Fiscal 2020 other procurement (Navy) funding in the amount of $30,662 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 via the Federal Business Opportunities website in accordance with 10 U.S. Code 2304(c)(1). This contract was not competitively procured and only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity (N00164-20-D-WP60). UPDATE: An indefinite-delivery/indefinite-quantity, multiple award design-build/design-bid-build construction contract announced on Jan. 31, 2020, with a combined value of $990,000,000, has added HHM Laulima Constructors JV, Honolulu, Hawaii (N62478-20-D-4013); Nan Inc., Honolulu, Hawaii (N62478-20-D-4014); and TNT Constructors, Bremerton, Washington (N62478-20-D-4015), as three of 10 awardees to design-build and design-bid-build construction projects located within the Naval Facilities Engineering Command Hawaii area of operations. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Blue Canyon Technologies Inc.,* Boulder, Colorado, has been awarded a $14,183,250 cost-plus-fixed-fee contract for the Blackjack Track B (Bus) Phases 2 and 3 program. Work will be performed in Boulder, Colorado, with an estimated completion date of June 2021. Fiscal 2020 research and development funds in the amount of $10,282,600 are being obligated at the time of award. This contract is a competitive acquisition in accordance with the original broad agency announcement HR0011-18-S-0032. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity (HR0011-20-C-0094). DEFENSE LOGISTICS AGENCY Sea Box Inc.,* Cinnaminson, New Jersey, has been awarded a maximum $7,799,220 firm-fixed-price contract for commercial shipping and storage containers. This was a competitive acquisition with 15 responses received. This is a one-year contract with no option periods. Locations of performance are New Jersey and Republic of Korea, with a March 15, 2021, performance completion date. Using customer 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 (SPE8ED-20-C-0006). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2215443/source/GovDelivery/

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