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July 26, 2019 | International, Aerospace

Boeing drops from next-generation ICBM competition

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WASHINGTON — Boeing has announced its withdrawal from the $85 billion Ground Based Strategic Deterrent competition, potentially leaving Northrop Grumman as the only contender vying to replace the Air Force's Minuteman III intercontinental ballistic missiles.

“After numerous attempts to resolve concerns within the procurement process, Boeing has informed the Air Force that it will not bid Ground Based Strategic Deterrent (GBSD) Engineering and Manufacturing Development (EMD) under the current acquisition approach,” reads a Boeing statement. “We've evaluated these issues extensively, and determined that the current acquisition approach does not provide a level playing field for fair competition.”

Boeing Defense CEO Leanne Caret detailed the company's issues in a July 23 letter to Air Force acquisition executive Will Roper, which was obtained by Defense News and other outlets.

“Throughout the procurement process, Boeing has been transparent with the Air Force about its concerns with the competition,” she wrote. “The final RFP released on July 16 made only modest changes to the draft RFPs that had been previously released. As relevant to the concerns Boeing had raised, the final RFP extended the proposal submission deadline by 60 days, from 90 days after the RFP's issuance to 150 days, and allowed offerors to submit ‘an alternative proposal in addition to their principal proposal,' that could include ‘a single, combined proposal' from both competitors."

But Caret said that those changes did not address Boeing's primary concern: that Northrop Grumman would have an unfair advantage in the competition due to its recent acquisition of solid rocket motor manufacturer Orbital ATK, now known as Northrop Grumman Innovation Systems.

NGIS is one of two U.S. manufacturers of solid rocket motors, alongside Aerojet Rocketdyne, but both Boeing and Northrop had chosen Orbital as its supplier for GBSD prior to the merger.

According to Caret, Northrop only recently — as of July 3 — signed off on an agreement that would firewall Boeing's proprietary information from Northrop's own GBSD team as Boeing negotiates with NGIS for solid rocket motors. Even though an agreement has now been reached, Caret contends that Boeing does not have enough time to negotiate a competitive price for the motors.

Caret said the current acquisition approach gives Northrop “inherently unfair cost, resource and integration advantages related to SRMs,” adding: “As I said in my July 8 letter, we lack confidence in the fairness of any procurement that does not correct this basic imbalance between competitors.”

Even the Air Force's accommodation that would allow Northrop and Boeing to submit a joint bid “is not a workable solution to these issues,” she said.

“Because the final RFP does not address Northrop's inherent advantage as a result of its control of SRMs, Northrop retains the ability to compete on unequal terms against either a Boeing or a joint ‘alternative' proposal — and as a result, would not be incentivized to devote the significant resources required to develop such a proposal,” Caret said.

Additionally, Caret said it is “not realistic” to expect that Boeing and Northrop could develop a competitive joint bid in the five months before proposals are due, given that both companies have been working on their separate proposals for more than two years.

An Air Force spokeswoman declined to comment on the news, as the competition is currently in source selection.

Inside Defense broke the news of Boeing's departure from the competition.

Boeing's decision comes a week after the Air Force released its final request for proposals on July 16. A contract for the engineering, manufacturing and development phase is expected to be awarded by the end of 2020.

Lockheed Martin had previously competed for the contract, but was ousted in August 2017, when the service awarded technology maturation and risk reduction contacts to Boeing and Northrop.

It's unclear how Boeing's departure will affect the ultimate price of the GBSD program.

In April, Gen. Timothy Ray, head of Air Force Global Strike Command, said he was counting on competition between Northrop and Boeing to help offset a near-term bump in cost expected as the Air Force makes investments in current infrastructure that will be reused for the GBSD system. Ultimately, that competition would help drive “billions” of dollars in savings over the lifespan of he weapon, he said.

“Between the acquisition and the deal that we have from a competitive environment, from our ability to drive sustainment, the value proposition that I'm looking at is a two-thirds reduction in the number of times we have to go and open the site. There's a two-thirds reduction in the number of times we have to go and put convoys on the road.”

It would be unusual for the Air Force to move forward with this program with only one competitor, Byron Callan, an analyst with Capital Alpha Partners, noted in an email.

“One option would be for the Air Force to re-write the RFP to address some of Boeing's concerns, which could delay the program,” he wrote. “The RFP had been seen by some analysts as favoring Northrop Grumman because the initial portion was cost-plus, but Boeing's concerns suggest it's worried about a strategic bid by Northrop Grumman.”

During an earnings call on Wednesday, Boeing CEO Dennis Muilenburg referred to the GBSD program a single time — to say that the company would leverage its development work on GBSD for future programs such as NASA Commercial Crew effort and next-generation space launch.

https://www.defensenews.com/space/2019/07/25/boeing-drops-from-next-generation-icbm-competition/

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  • Contract Awards by US Department of Defense – September 21, 2020

    September 22, 2020 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

    Contract Awards by US Department of Defense – September 21, 2020

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Future task orders will be primarily funded by military construction (Navy); O&M (Navy); O&M (Marine Corps); and Navy working capital funds. This contract was competitively procured as a small business set-aside procurement via the Navy Electronic Commerce Online website with 16 proposals received. These five contractors may compete for task orders under the terms and conditions of the awarded contracts. NAVFAC Southwest, San Diego, California, is the contracting activity. Huntington Ingalls Inc., Newport News, Virginia, is awarded a $351,810,277 cost-plus-fixed-fee modification to previously awarded contract N00024-18-C-4314 for the USS Boise (SSN 764) early production period that encompasses continued advance planning, execution services, production and availability preparations for the USS Boise engineered overhaul. This contract modification includes options, which if exercised, will bring the cumulative value of this action to $355,015,496. Work will be performed in Newport News, Virginia, and is expected to be completed by May 2023. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $351,810,277 will be obligated at time of award, of which, funds in the amount of $351,810,277 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Vertex Aerospace LLC, Madison, Mississippi, is awarded a $21,747,155 modification (P00014) to previously awarded firm-fixed-price, cost reimbursable, indefinite-delivery/indefinite-quantity contract N61340-17-D-0005. This modification exercises options to provide intermediate-level maintenance, repair and logistics support services to include labor, direct and indirect material for Chief of Naval Air Training aircraft. Additionally, this modification procures tooling and equipment required to support and maintain four aircraft intermediate maintenance departments and related support equipment. Work will be performed in Pensacola, Florida (47%); Corpus Christi, Texas (40%); Whiting Field, Florida (10%); and Meridian, Mississippi (3%), and is expected to be completed in September 2021. No funds are being obligated at time of award, funds will be obligated on individual orders as they are issued. The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity. USA Waste of California Inc., doing business as Waste Management, Los Angeles, California, is awarded a maximum amount of $21,658,159 indefinite-delivery/indefinite-quantity, firm-fixed-price contract for integrated solid waste management services at various Navy and Marine Corps installations within the San Diego metropolitan and San Diego County areas. The work to be performed provides for labor, supervision, management and materials to perform various integrated solid waste management service functions as follows: refuse and recycling collection and disposal services. An initial task order is being awarded at $2,317,525 for integrated solid waste management services at Naval Base, San Diego, California (45%); Marine Corps Air Station, Miramar, California (24%); Naval Base Point, Loma, California (24%); Marine Corps Recruit Depot, California (6%); Camp Michael, Monsoor, California (less than 1%); Remote Survival, Evasion, Resistance, and Escape Camp, Warner Springs, California (less than 1%); and Camp Morena, California (less than 1%). Work for this task order is expected to be completed by September 2021. The term of the contract is not to exceed 96 months with an expected completion date of September 2028. Fiscal 2021 operations and maintenance Navy (O&M, N); operations and maintenance Defense Health Program (O&M, DHP); and Navy working capital funds (NWCF) in the amount of $2,317,525 will be obligated at the beginning of the fiscal year and will expire at the end of that fiscal year. 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Fiscal 2019 other procurement (Navy); fiscal 2019 procurement (defense-wide) funding; and fiscal 2019 research, development, test and evaluation (Navy) funding in the amount of $21,580,941 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Surface Warfare Center, Port Hueneme Division, Port Hueneme, California, is the contracting activity. Lockheed Martin Corp., Marietta, Georgia, is awarded a $12,772,525 modification (P00012) to previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contract N00019-19-D-0014. This modification exercises options to procure consumable parts and material in support of the C/KC-130J aircraft for the Marine Corps, Marine Corps Reserves, Coast Guard and the government of Kuwait. 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Fiscal 2020 procurement of ammunition (Army) funds in the amount of $17,211,588 were obligated at the time of the award. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2355497/source/GovDelivery/

  • Contract Awards by US Department of Defense - January 8, 2019

    January 9, 2019 | International, Land

    Contract Awards by US Department of Defense - January 8, 2019

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