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October 4, 2018 | International, Aerospace

Boeing Wins $63M Navy Deal for F/A & E/A-18 Aircraft Support

By Zacks Equity Research,

The Boeing Company BA recently won a $62.7-million contract for providing inspections, Inner Wing Panel (IWP) modifications, and repairs for the F/A-18 E/F and EA-18G aircraft. Such designated efforts are expected to restore aircraft and IWP service life projections to new design specifications.

Work related to the deal will be majorly carried out in Jacksonville, FL; St. Louis, MI; and Lemoore, CA. The entire task related to the deal is expected to get completed in September 2019. The deal was awarded by the Naval Air Systems Command, Patuxent River, Maryland.

A Brief Note on F/A-18 and E/A-18

Boeing's F/A-18 Block III Super Hornet is a twin-engine, supersonic, all weather multirole fighter jet. The U.S. Navy's tactical and air superiority aircraft is capable of performing virtually every mission in the tactical spectrum, including air superiority, day/night strike with precision-guided weapons, fighter escort, close air support, suppression of enemy air defenses, maritime strike, reconnaissance, forward air control and tanker missions.

Whereas, the EA-18G Growler is the most advanced airborne electronic attack (AEA) platform, which operates from either an aircraft carrier or from land-bases.

What's Favoring Boeing?

Boeing, being one of the major players in the defense business, stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog. Furthermore, the company's expertise lies in programs related to wide variety of aircraft components, repairs and modification works.

Considering Boeing's combat-proven aerospace programs and associated services along with the rapidly growing need for military aircraft in light of the enhancing geopolitical uncertainties worldwide, the company witnesses a solid inflow of orders from Pentagon. These contract wins, in turn, boost top-line growth for the company's defense business segment.

Evidently, in second-quarter 2018, revenues at the Boeing Defense, Space & Security (BDS) segment, which manufactures military jets like F/A-18, EA-18 Growler and its related components, increased 9% year over year to $5.59 billion. In line with this, we may expect the latest contract win to help this unit deliver similar top-line performance, in coming quarters.

Meanwhile, toward the end of June 2018, the U.S. Senate approved the fiscal 2019 defense budget that provisions for major war fighting investments worth $21.7 billion for aircraft. Boeing, being the largest aircraft manufacturer in the United States, will surely be a significant beneficiary from the budget, which further includes an investment plan of $2 billion for procuring 24 F/A-18E/F aircraft. Such inclusions reflect solid growth prospects for the BDS segment, which, in turn, are likely to boost Boeing's profit margin.

Price Movement

Boeing's stock has gained 53.4% in the past 12 months compared with the industry 's growth of 25.1%. The outperformance was primarily led by the robust worldwide demand for its commercial aircraft and military jets.

Full article: https://www.nasdaq.com/article/boeing-wins-63m-navy-deal-for-fa-ea-18-aircraft-support-cm1032450

On the same subject

  • Meggitt: $323m multi-year agreement with U.S. Defense Logistics Agency

    October 3, 2018 | International, Aerospace

    Meggitt: $323m multi-year agreement with U.S. Defense Logistics Agency

    Meggitt PLC, a leading international company specialising in high performance components and sub-systems for the aerospace, defence and energy markets, has been awarded a five year Indefinite Demand/Indefinite Quantity (IDIQ) agreement with U.S. Defence Logistics Agency to supply wheels, brakes and related spare parts. The contract, worth $323m over the life of the award, covers the supply of depot-level spares for a number of defence platforms including F-16 Falcon, H-60 Blackhawk and CH-47 Chinook. The contract includes a further five year option period and replaces a prior five year IDIQ agreement which expired on 30 September 2018. President of Meggitt's Aircraft Braking Systems, Luke Durudogan said: “This award demonstrates the trust and confidence that our customers have in our employee's expertise, products and services. We look forward to working in partnership with the U.S. Defence Logistics Agency.” ENDS Enquiries Sarah Taylor Communications Manager Meggitt PLC Tel: +44 (0) 7395 788 748 Email: press.office@meggitt.com About Meggitt PLC Headquartered in the United Kingdom, this international group operates in North America, Europe and Asia. Known for its specialised extreme environment engineering, Meggitt is a world leader in aerospace, defence and energy. Meggitt employs more than 11,000 people at over 40 manufacturing facilities and regional offices worldwide. https://www.meggitt.com/news/meggitt-awarded-323-million-multi-year-agreement-with-u-s-defense-logistics-agency/

  • Pentagon: We’re Buying Boeing F-15s to Keep 2 Fighter Makers in Business

    March 26, 2019 | International, Aerospace

    Pentagon: We’re Buying Boeing F-15s to Keep 2 Fighter Makers in Business

    BY MARCUS WEISGERBER The acting defense secretary's ties to the company had nothing to do with the decision, a senior defense official said Friday. The decision to buy new Boeing F-15s reflects the Pentagon's desire to keep two American companies making fighter jets into the next decade — and not the acting defense secretary's ties to the company, a senior defense official said Friday. The 2020 budget request contains $1.1 billion to buy eight F-15X jets, a new variant of an aircraft the Air Force last bought nearly a decade ago. The twin-tailed plane was chosen over Lockheed's cheaper single-engine F-16 in part to keep a second U.S. manufacturer in the tactical-jet business as the Pentagon begins exploring new technologies for a new generation of warplanes, the official said. “One of the considerations was the diversity of the industrial base,” the official said. “If we look at something as important as the tactical aircraft industrial base and we look forward into sixth-generation [fighter] production and competition and that kind of stuff,...gaining diversity in that industrial base is going to be critical.” The senior defense official emphasized that Acting Defense Secretary Patrick Shanahan, who formerly worked as a Boeing executive, was not involved in the decision to buy the F-15X. Full article: https://www.defenseone.com/business/2019/03/pentagon-were-buying-f-15s-keep-2-fighter-makers-business/155773

  • Contract Awards by US Department of Defense - July 29, 2020

    July 30, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - July 29, 2020

    NAVY Advanced Technology Systems Co.,* McLean, Virginia (N00039-20-D-0060); Forward Slope Inc.,* San Diego, California (N00039-20-D-0061); ITC Defense,* Arlington, Virginia (N00039-20-D-0062); Solute Inc.,* San Diego, California (N00039-20-D-0063); and Veterans First Initiative,* Gainesville, Virginia (N00039-20-D-0064), are awarded a $75,000,000 not-to-exceed, hybrid (firm-fixed-price, cost-plus fixed-fee, cost-reimbursable, indefinite-delivery/indefinite-quantity) multiple award contract (MAC) for command, control, communications, computers and intelligence integrated international support services in support of U.S. security assistance and security cooperation programs. No contract funds will be obligated on the basic MAC awards. Funds in the amount of $2,000 per awardee will be obligated at the time of award on the first task order under each contract utilizing fiscal 2020 Foreign Military Sales (FMS) administration funding. This contract utilizes FMS funding from various security cooperation partners that will be identified as individual task orders are issued. Work will be performed in various overseas locations based on the requirement for each task order placed. The ordering period for each contract is five years. Contract funds that are awarded using FMS administration funding will expire at the end of the current fiscal year; any funds awarded using FMS case funding will not expire at the end of the year. These contracts were competitively procured with small business proposals solicited and 10 offers were received via the beta.SAM.gov and Naval Information Warfare Systems Command e-Commerce websites. The Naval Information Warfare Systems Command, San Diego, California, is the contracting activity. Heffler Contracting Group,* El Cajon, California, is awarded an $25,000,000 maximum amount, indefinite-delivery/indefinite-quantity contract for heavy and civil engineering construction at various locations within the metro San Diego, California area (Naval Bases San Diego, Coronado, Point Loma and Marine Corps Air Station Miramar). No task orders are being issued at this time. The work to be performed provides for the design, construction, supervision, equipment, material, labor and all means necessary for other heavy and civil engineering construction, repairs, renovations and new construction projects. The term of the contract is not to exceed 60 months and work is expected to be completed by July 2025. Fiscal 2020 operations and maintenance (Navy) (O&M, N) contract funds in the amount of $2,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by military construction (Navy); O&M, N; and O&M (Marine Corps). This contract was competitively procured via the beta.SAM.gov contract opportunities website and four proposals were received. The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-20-D-1110). HDR Architecture Inc., Arlington, Virginia, is awarded a $13,781,605 firm-fixed-price contract to provide post-construction award services for the Walter Reed National Military Medical Center addition/alteration at Naval Support Activity Bethesda, Maryland. The contract is incrementally funded with the first increment of $3,000,000 being allocated at the time of award. Work will be performed in Bethesda, Maryland. The work to be performed provides architect and engineering post construction award services for construction consultation to the government and provides assistance with technical issues that may arise in connection with the project during the construction of the Walter Reed National Military Medical Center addition/alteration at Naval Support Activity Bethesda, Maryland. This work consists of responding to requests for information, review shop drawing submittals, prepare record drawings, field consultation during construction, partnering meetings and other post construction award services as needed. In addition, full time/on-site representation will be required for field consultations or participations in construction progress team reviews. Work is expected to be completed by March 2026. Fiscal 2016 military construction (Department of Defense-wide) contract funds are obligated on this award and will expire at the end of the current fiscal year. Pursuant to the Federal Acquisition Regulation 6.302-1(a)(2)(iii), which authorizes the use of other than full and open competition when there is only one available source, this contract was sole sourced to HDR Architecture Inc. because of their uniquely qualified position to perform the required work. The Naval Facilities Engineering Command Washington, Washington, D.C., is the contracting activity (N40080-20-C-0016). Curtiss-Wright Fleet Solutions, Chesapeake, Virginia, is awarded a $13,308,348 not to exceed, indefinite-delivery/indefinite-quantity, firm-fixed-price contract for labor, parts, support to installations, troubleshooting, repair and maintenance of Navy equipment manufactured and serviced by Curtiss-Wright Fleet Solutions. Equipment includes low, medium and high pressure air compressors, single stage turbines, pumps, compressed air valves and manifolds for various ship classes in support of Naval Surface Warfare Center Philadelphia Division. Work will be performed in Chesapeake, Virginia (85%); the remaining (15%) will be performed in Newport News, Virginia, as determined by the individual task orders. Work is expected to be completed by July 2026. Fiscal 2017 shipbuilding and conversion (Navy) funding in the amount of $500 ($500 minimum guarantee for contract) will be obligated at time of award via an individual task order and will not 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 Surface Warfare Center Philadelphia Division, Philadelphia, Pennsylvania, is the contracting activity (N64498-20-D-4028). AIR FORCE L3 Technologies Inc., Bristol, Pennsylvania, has been awarded a $64,232,376 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for Telemetry Security Products (TSP) and ancillary services. The contractor shall manufacture and deliver all TSP, National Security Agency (NSA) approved class one encryption products and NSA-approved encryption accessories, in accordance with individual delivery orders. The contractor shall perform the following services in accordance with individual delivery orders, telecommunications electronics materials protected from emanating spurious transmissions test, electromagnetic interference/radio frequency interference test, product upgrade/enhancement, repair and technical support as required. Work will be performed in Bristol, Pennsylvania, and is expected to be completed by July 28, 2025. This award is the result of a sole-source acquisition. Fiscal 2019 Department of Defense procurement funds in the amount of $549,200 are being obligated at the time of award. Directorate of Contracting, Edwards Air Force Base, California, is the contracting activity. Hardwood Products Co. L.P., Guilford, Maine, has been awarded a not-to-exceed $51,150,000 undefinitized contract action (UCA) for industrial base expansion for U.S. domestic production capacity for medical flock tip swabs. This contract award is part of the ongoing collaboration between the Department of Defense and Health and Human Services, led by the department's Joint Acquisition Task Force and funded through the CARES Act to enable and support domestic industrial base expansion for critical medical resources. Primary tasks under this contract action include procurement, assembly and installation of flock tip swab assembly and packaging machinery and buildout of a production facility. Work will be performed in Guilford, Maine, and is expected to be completed eight months after receipt of UCA. This award is the result of a sole-source acquisition. Air Force Life Cycle Management, Hanscom Air Force Base, Massachusetts, is the contracting activity (FA8730-20-C-0056). A-Tech Corp., Albuquerque, New Mexico has been awarded a $16,923,957 cost-plus-fixed-fee contract for a communication system with two-way time transfer operating within W/V-bands and incorporating Free Space Optical links. This system will model Heterogeneous Optical W/V-band Demonstration, evaluate and develop its components and demonstrate its potential at meeting these objectives. Work will be performed in Albuquerque, New Mexico, and is expected to be completed Oct. 31, 2025. This award is the result of a competitive acquisition with one offer received. Fiscal 2019 and 2020 research and development funds in the amount of $365,733 are being obligated at time of award. Air Force Research Laboratory, Kirtland Air Force Base, New Mexico, is the contracting activity (FA9453-20-C-0024). Perry Management Corp., Pearl City, Hawaii, has been awarded a $15,041,798 indefinite-delivery/indefinite-quantity contract for refuse services. The contractor shall provide all personnel, equipment, tools, materials, vehicles, supervision and other items and services necessary to perform installation-wide Municipal Solid Waste collection/disposal to include asbestos disposal service specific to Joint Base San Antonio (JBSA) Lackland, Texas. Municipal Solid Waste collection services at JBSA installations include Lackland, Randolph, Fort Sam Houston, Camp Bullis, Canyon Lake military recreation areas, and Seguin Airfield in Texas, in accordance with all local, state and federal laws, regulations, standards, instructions, commercial practices or international agreements. This award is the result of a competitive acquisition and five offers were received. Fiscal 2020 operations and maintenance funds in the amount of $18,288 are being obligated at the time of award. The contract is expected to be completed by Feb. 28, 2025. The 502nd Contracting Squadron, JBSA Lackland, Texas, is the contracting activity (FA3016-20-D-0024). SRC Inc., North Syracuse, New York, has been awarded a $7,627,257 task order for primarily platform electronic fit and supporting telecommunication parametric data support under the indefinite-delivery/indefinite-quantity contract FA7037-17-D-0001 for the sensor beam program. The contractor will research, analyze, technically document and perform reviews on electromagnetic systems, events and signatures required by all services and other U.S. agencies. Work will be performed at Joint Base San Antonio-Lackland, Texas, and is expected to be completed July 30, 2021. Fiscal 2020 operations and maintenance funds in the full amount are being obligated at the time of award. Acquisition Management and Integration Center-Detachment 2, Joint Base San Antonio-Lackland, Texas, is the contracting activity. DEFENSE LOGISTICS AGENCY Draeger Inc., Telford, Pennsylvania, has been awarded a maximum $60,000,000 modification (P00029) exercising the sixth one-year option period of a one-year base contract (SPE2D1-14-D-0004) with nine one-year option periods for patient monitoring systems, subsystems, accessories, consumables and training. This is a fixed-price with economic-price-adjustment indefinite-delivery/indefinite-quantity contract. Location of performance is Pennsylvania, with an Aug. 5, 2021, ordering period end date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. ARMY Raytheon/Lockheed Martin Javelin JV, Tucson, Arizona, was awarded a $47,239,843 modification (P00022) to contract W31P4Q-19-C-0076 for full rate production of the Javelin weapon system. Work will be performed in Tucson, Arizona, with an estimated completion date of Aug. 31, 2023. Fiscal 2010 and 2020 missile procurement (Army) funds in the amount of $47,239,843 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Threat Tech-Yorktown Systems Group JV LLC,* Hampton, Virginia, was awarded a $31,362,444 hybrid (firm-fixed-price, time-and-materials) contract for core functions support services for U.S. Army Training and Doctrine Command. Bids were solicited via the internet with five received. Work will be performed in Fort Eustis, Virginia, with an estimated completion date of Aug. 9, 2025. Fiscal 2020 operations and maintenance (Army) funds in the amount of $19,997,056 were obligated at the time of the award. U.S. Army Field Directorate Office, Fort Eustis, Virginia, is the contracting activity (W911S0-20-C-0007). River City Construction LLC, East Peoria, Illinois, was awarded a $30,100,000 firm-fixed-price contract for construction of a consolidated communications building at Scott Air Force Base, Illinois. Bids were solicited via the internet with three received. Work will be performed at Scott Air Force Base, with an estimated completion date of Jan. 9, 2023. Fiscal 2017 military construction (Air Force) funds in the amount of $30,100,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-20-C-0028). The Boeing Co., Mesa, Arizona, was awarded an $11,250,000 modification (P00053) to contract W58RGZ-16-C-0023 to update critical safety items for the Apache attack helicopter (AH-64E). Work will be performed in Mesa, Arizona, with an estimated completion date of Dec. 31, 2024. Fiscal 2018 and 2019 aircraft procurement (Army) funds in the amount of $11,250,000 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Kitware Inc., Clifton, New York, was awarded an $11,947,912 cost-plus-fixed-fee contract for a research project under the Semantic Forensics (SemaFor) program. The SemaFor program will develop methods that exploit semantic inconsistencies in falsified media to perform tasks across media modalities and at scale. Work will be performed in Clifton Park, New York; Corvallis, Oregon; and at university laboratories in New York, New York; Albany, New York; Tempe, Arizona; Urbana, Illinois; and Ann Arbor, Michigan, with an expected completion date of July 2024. Fiscal 2020 research, development, test and evaluation funding in the amount of $1,733,340 is being obligated at time of award. This contract was a competitive acquisition under a full and open broad agency announcement and 37 proposals were received. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity (HR0011-20-C-0123). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2293268/source/GovDelivery/

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