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April 28, 2020 | International, Aerospace

Collapse of Boeing-Embraer deal could have major impact on C-390 Millennium’s future

By: Valerie Insinna

WASHINGTON — Boeing's termination of a $4.2 billion deal for a majority stake in Embraer's commercial aviation business could have widespread implications on the Brazilian firm's flagship military aircraft.

Boeing on Saturday announced that it would walk away from a joint venture that would give it an 80 percent stake in Embraer's commercial business, as well as a 49 percent stake in the company's C-390 Millennium cargo plane.

Although Boeing said that the company would maintain previous teaming agreements to support Embraer with marketing the C-390 internationally, analysts told Defense News that the vitriol between the two companies could portend a wider collapse of their collaboration in the military sphere.

“The future of the KC-390 without Boeing — or without a U.S. defense prime helping — isn't all that great,” said Richard Aboulafia, an aerospace analyst with the Teal Group. “It just seems like cooler heads should probably prevail.”

At Dubai Air Show last November, the companies announced the formation of a new entity known as Boeing-Embraer Defense set up specifically to proactively market the C-390 around the world — a step up from previous agreements that had Boeing in more of a hands-off role. The agreement gave Boeing a new plane that could compete head-to-head against Lockheed Martin's C-130, and gave Embraer the resources to match.

The big question now is whether Embraer seeks out partnerships elsewhere for either the KC-390 or its commercial business, said Byron Callan, an analyst with Capital Alpha Partners.

“I just wonder, is there something else or someone else that emerges in 2021 or 2022 that ties up with Embraer. Could that be Chinese? Indian? Another country, company or entity outside of the United States?” he said. “That would be a more interesting broader change for aerospace, that has military implications as well, too.”

It's even possible that Airbus could try to usurp Boeing's role as Embraer's partner on the C-390, said Callan, who noted that Airbus — like Boeing — does not offer a medium cargo transport aircraft that directly competes against the C-130.

A good relationship gone bad

On Monday morning, Embraer announced that it had filed arbitration proceedings against Boeing, capping off an angry back-and-forth between both companies that spanned the weekend.

When Boeing announced it was walking away from the deal on Saturday, the company claimed it had “worked diligently over more than two years” to finalize the transaction, but that Embraer left some conditions of the master transaction agreement, or MTA, unresolved.

"It is deeply disappointing,” said Marc Allen, Boeing's president of Embraer Partnership & Group Operations. “But we have reached a point where continued negotiation within the framework of the MTA is not going to resolve the outstanding issues."

Embraer, however, issued a scathing statement of its own, asserting that it had fulfilled all contractual obligations and blaming the failure of the deal on Boeing's continued financial problems and the fallout from two fatal 737 MAX crashes.

“Embraer believes strongly that Boeing has wrongfully terminated the MTA, that it has manufactured false claims as a pretext to seek to avoid its commitments to close the transaction and pay Embraer the US$4.2 billion purchase price,” the company said.

“We believe Boeing has engaged in a systematic pattern of delay and repeated violations of the MTA, because of its unwillingness to complete the transaction in light of its own financial condition and 737 MAX and other business and reputational problems.”

Boeing's decision to break its agreement with Embraer makes sense from a financial standpoint, Cai Von Rumohr, a defense analyst with Cowen, wrote in an email to investors. Because of COVID-19's impact on the aerospace industry, $4.2 billion seems an inflated price for Boeing to pay to acquire a controlling stake in Embraer's commercial business, and terminating the deal may help to free up cash that Boeing needs in the near-term.

But while Von Rumohr said he believes Boeing and Embraer will continue to collaborate on the C-390, it will depend on whether the relationship can be salvaged.

“This issue is, how pissed off is Embraer now, and is this something they're likely to get over to continue with what was a teaming agreement that made a whole lot of sense for both parties?” Von Rumohr told Defense News.

Another major question is how the COVID-19 crisis effects worldwide defense spending, with implications for nations' domestic industries as well the international defense industrial base.

Callan noted that some countries who have ordered the aircraft such as Brazil or Portugal “are probably looking at different defense budget projections.

Aboulafia added that the dissolution of the partnership increases the likelihood that Embraer will need stimulus funds from the government of the Brazil to help fortify its commercial sector during the COVID-19 pandemic.

“That money could easily come out of defense spending, which would impact Embraer defense programs, particularly Gripen or C-390,” he said.

https://www.defensenews.com/air/2020/04/27/collapse-of-boeing-embraer-deal-could-have-major-impact-on-c-390-millenniums-future

On the same subject

  • Contract Awards by US Department of Defense - July 14, 2020

    July 15, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - July 14, 2020

    NAVY Bay City Marine Inc.,* National City, California (N32253-17-D-0003); Caliedo & Sons Services Inc.,* Ewa Beach, Hawaii (N32253-17-D0004); Delphinus Engineering Inc.,* Eddystone, Pennsylvania (N32253-17-D-0005); Epsilon Systems Solutions Inc.,* Portsmouth, Virginia (N32253-17-D-0006); Propulsion Controls Engineering,* Aiea, Hawaii (N32253-17-D-0007); Pacific Shipyards International LLC,* Honolulu, Hawaii (N32253-17-D-0008); QED Systems Inc.,* Virginia Beach, Virginia (N32253-17-D-0009); Confluence Corp., doing business as Regal Service Co.,* Honolulu, Hawaii (N32553-18-D-0003); Marisco LTD,* Kapolei, Hawaii (N32253-18-D-0004); and Integrated Marine Services Inc.,* Chula Vista, California (N32553-18-D-0005), are awarded a $49,000,000 modification, increasing the ceiling for a total of $98,000,000 on the surface multi-award (SURFMAC), indefinite delivery/indefinite quantity (IDIQ) contract. The SURFMAC is a firm-fixed-price IDIQ for the procurement-involving repair, maintenance and alteration of U.S. government waterborne vessels and surface ships visiting or homeported in the Hawaiian Islands. Work will be performed on Oahu, Hawaii. Types of trades required are ship fitting, sheet metal, welding, pipefitting, painting, machining/mechanical, electrical, electronics, woodworking, lagging and rigging. Sample work includes, but is not limited to, ventilation, air conditioning, tank work, structural repairs, fumigation, electrical system repair, pump repair, fan repair, decking, fire system repairs and updates. Work is expected to be completed by September 2022. The 10 contractors may compete for delivery orders under the terms and conditions of the awarded contracts. Funds will be obligated at the order level. The Naval Sea Systems Command, Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility, Pearl Harbor, Hawaii, is the contracting activity. Ultra Electronics Ocean Systems, Braintree, Massachusetts, is awarded a $42,192,128 not-to-exceed, undefinitized modification to previously awarded contract N63394-19-C-0007 to exercise options for production of Next Generation Surface Search Radar (NGSSR) systems. The NGSSR will replace all variants of the current AN/SPS-67, AN/SPS-73, BridgeMaster E series and commercial-off-the-shelf radar systems. Work will be performed in Wake Forest, North Carolina (85%); Chantilly, Virginia (14%); and Braintree, Massachusetts (1%). This contract modification will acquire the first NGSSR production lot following a contract award for design and production of three qualification systems. The primary objective of NGSSR is to replace legacy systems due to current military threats and obsolescence issues. Work is expected to be completed by April 2023. Fiscal 2020 other procurement (Navy); and 2017 and 2018 shipbuilding and conversion (Navy) funding in the amount of $21,096,064 will be obligated at time of award. Funds will not expire at the end of the current fiscal year. The NGSSR was not competitively procured in accordance with 15 U.S. Code 638(r)(4) under the Small Business Innovation Research Phase III program/2018 National Defense Authorization Act. The Naval Surface Warfare Center, Port Hueneme Division, Port Hueneme, California, is the contracting activity. PAE Aviation and Technical Services LLC, Greenville, South Carolina, is awarded a $25,918,520 modification (P00026) to previously awarded firm-fixed-price, cost reimbursable indefinite-delivery/indefinite-quantity contract N00421-15-D-0007. This modification exercises an option to extend services for organizational, selected intermediate and limited depot maintenance and logistics support for Northrop F-5F and F-5N aircraft in support of the Specialized and Proven Aircraft Program. Work will be performed in Key West, Florida (40%); Fallon, Nevada (30%); and Yuma, Arizona (30%), and is expected to be completed by January 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 Aircraft Division, Patuxent River, Maryland, is the contracting activity. ARMY Swan Contracting LLC,* Petersborough, New Hampshire, was awarded a $45,000,000 firm-fixed-price contract for rapid-response temporary roofing projects in the event of an emergency. Bids were solicited via the internet with 16 received. Work locations and funding will be determined with each order, with an estimated completion date of June 30, 2027. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-20-D-0034). Blue Tarpon Construction LLC,* Gulf Breeze, Florida, was awarded a $45,000,000 firm-fixed-price contract for rapid-response temporary roofing projects in the event of an emergency. Bids were solicited via the internet with 16 received. Work locations and funding will be determined with each order, with an estimated completion date of June 30, 2027. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-20-D-0035). Venegas Construction Corp.,* Ponce, Puerto Rico, was awarded a $45,000,000 firm-fixed-price contract for rapid-response temporary roofing projects in the event of an emergency. Bids were solicited via the internet with 16 received. Work locations and funding will be determined with each order, with an estimated completion date of June 30, 2027. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-20-D-0036). Leidos Inc., Reston, Virginia, was awarded a $34,951,039 hybrid (cost-no-fee, cost-plus-fixed-fee) contract for system operations and sustainment services and test and training services in support of the Saturn Arch Aerial Intelligence Systems Quick Reaction Capability Program. Bids were solicited via the internet with one received. Work will be performed in Reston, Virginia; Bridgewater, Virginia; and Huntsville, Alabama, with an estimated completion date of March 16, 2024. Fiscal 2020 operations and maintenance (Army Reserve) funds in the amount of $34,951,039 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-20-C-0024). DEFENSE LOGISTICS AGENCY US Foods Inc., Raleigh, North Carolina, has been awarded a maximum $22,000,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for full-line food distribution. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a 127-day bridge contract with no option periods. Locations of performance are Virginia and North Carolina, with a Nov. 17, 2020, ordering period end date. Using military services are Army, Air Force, Navy and Marine Corps. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-3281). (Awarded July 10, 2020) New Maryland Clothing,* Baltimore, Maryland, has been awarded a maximum $12,268,935 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for men's and women's uniform dress coats. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(3), as stated in Federal Acquisition Regulation 6.302-3. This is a two-year base contract with one one-year option period. Location of performance is Maryland, with a July 13, 2022, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2020 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1298). American Water Operations and Maintenance LLC, Camden, New Jersey, has been awarded a $7,636,368 modification (P00038) to 50-year contract SP0600-15-C-8302 with no option periods to increase the operations, maintenance, renewal and replacement charges for the water and wastewater utility systems at Vandenberg Air Force Base, California. This is a fixed-price with economic-price-adjustment contract. Locations of performance are New Jersey and California, with a May 31, 2066, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2020 through 2066 Air Force operations and maintenance funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia. AIR FORCE Thomas Instrument Inc., Brookshire, Texas, has been awarded a $7,100,000 requirements-type contract for the depot-level overhaul of the C-5 visor door actuator. Work will be performed in Brookshire, Texas, and is expected to be completed by July 13, 2025. This award is the result of a non-competitive acquisition. Fiscal 2020 defense working capital funds are being used and no funds are being obligated at the time of award. The Air Force Sustainment Center, Robins Air Force Base, Georgia, is the contracting activity (FA8538-20-D-0004). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2273894/source/GovDelivery/

  • Contract Awards by US Department of Defense - December 18, 2018

    December 19, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - December 18, 2018

    MISSILE DEFENSE AGENCY Lockheed Martin Corp., Moorestown, New Jersey, is being awarded a $585,206,351 fixed-price incentive delivery order for the Homeland Defense Radar - Hawaii (HDR-H). The contractor will design, develop, and deliver the HDR-H radar providing autonomous acquisition and persistent precision tracking and discrimination to optimize the defensive capability of the Ballistic Missile Defense System (BMDS) and counter evolving threats. This award is the result of a competitively awarded acquisition in which one offer was received. Fiscal 2018 and 2019 research development test and evaluation funds in the amount of $51,389,757 are being obligated at time of award. The work will be performed in Moorestown, New Jersey; and Oahu, Hawaii. The exact location in Oahu, Hawaii, will be determined at the conclusion of the ongoing site selection and National Environmental Policy Act processes. The period of performance is from Dec. 18, 2018, through Dec. 17, 2023. The Missile Defense Agency, Redstone Arsenal, Alabama, is the contracting activity (HQ0147-19-F-0018). DEFENSE INFORMATION SYSTEMS AGENCY Hewlett Packard Enterprise, Reston, Virginia, was awarded a competitive, single award indefinite-delivery/indefinite–quantity, firm-fixed-price contract for X86 processor capacity services. The total lifecycle amount of the contract is $323,921,060. The minimum guarantee for this effort is $770,000, $675,000 of which is being met by the first delivery order under HC1084-19-F-0001, and is funded by fiscal 2019 research, development, test and evaluation funds. Performance will be at current Defense Information Systems Agency (DISA) data centers or future DISA centers in the continental U.S. (CONUS), DISA outside CONUS (OCONUS) data centers, and other DISA or DISA-approved locations worldwide in which DISA may acquire an operational responsibility. Proposals were solicited via the Federal Business Opportunities websites, and six proposals were received from the proposals solicited. The period of performance is for a base of five years beginning Dec. 19, 2018, and five one-year periods through Dec. 18, 2028. The Defense Information Technology Contracting Organization, Scott AFB, Illinois, is the contracting activity (HC1084-19-D-0002). NAVY General Electric Co., Lynn, Massachusetts, is awarded $290,834,776 for modification P00014 to a previously awarded firm-fixed-price contract (N00019-17-C-0047) for the procurement of eight F414-GE-400 install engines for the Navy. In addition, this modification provides for the procurement of 56 F414-GE-400-1A install engines; four F414-GE-400 spare engines; two spare engine containers and 12 spare engine modules for the government of Kuwait. These engines power the F/A-18E/F Super Hornet aircraft. Work will be performed in Lynn, Massachusetts (59 percent); Hooksett, New Hampshire (18 percent); Rutland, Vermont (12 percent); and Madison, Kentucky (11 percent), and is expected to be completed in December 2020. Fiscal 2018 aircraft procurement (Navy); and foreign military sales funds in the amount $290,834,776 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This modification combines purchases for the. Navy ($33,261,704; 11 percent); and the government of Kuwait ($257,573,072; 89 percent) under the Foreign Military Sales program. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. The Boeing Co., St. Louis, Missouri, is awarded a $91,720,000 ceiling-priced, cost-plus-fixed-fee, firm-fixed-price contract for the procurement of new aircrew and maintenance training systems, as well as upgrades and modifications to the existing F/A-18E/F and EA-18G aircrew and maintenance training systems to ensure the systems are representative of fleet aircraft and systems and interface with the F-35 Joint Strike Fighter Joint Simulation Environment. Work will be performed in St. Louis, Missouri, and is expected to be completed in December 2023. Fiscal 2017 aircraft procurement (Air Force); fiscal 2019 aircraft procurement (Navy); and 2018 research, development, test and evaluation funds in the amount of $32,260,000 will be obligated at time of award, $32,097,000 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. This contract combines purchase for the Navy ($90,836,000; 99.03 percent); and the Air Force ($884,000; 0.97 percent). The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity (N6134019D0906). Raytheon Co., McKinney, Texas, is awarded $65,648,632 for firm-fixed-price delivery order N00383-19-F-HC02 under a previously awarded basic ordering agreement (N00383-15-G-005D) for the repair of the Advanced Targeting Forward Looking Infrared system used in support of the F/A-18 aircraft. Work will be performed in McKinney, Texas (77 percent); Jacksonville, Florida (20 percent); and El Segundo, California (3 percent). Work is expected to be completed by December 2020. Working capital funds (Navy) in the full amount of $65,648,632 will be obligated to fund the delivery order and funds will not expire at the end of the current fiscal year. One source was solicited for this non-competitive requirement pursuant to the authority set forth in 10 U.S. Code 2304 (c)(1), in accordance with Federal Acquisition Regulation 6.302-1, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity. BAE Systems Information and Electronic Systems Integration Inc., Nashua, New Hampshire, is awarded a $32,396,621 five-year, firm-fixed-price requirements, long-term contract for the repair of 103 items of the ALQ-126B electronic countermeasures systems and two items of the ALE-55 radio frequency countermeasure system to support countermeasures for various aircraft. Work will be performed in Nashua, New Hampshire (47 percent); Jacksonville, Florida (48 percent); and Crane, Indiana (5 percent). Work is expected to be completed by December 2023. 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. This contract was a sole-source pursuant to the authority set forth in 10 U.S. Code 2304(C)(1) and Federal Acquisition Regulation 6.302-1, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-19-D-UA01). Rockwell Collins Inc., Cedar Rapids, Iowa, is awarded $14,915,670 for modification P00004 to a previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contract (N00421-18-D-0004) to exercise additional contract line item numbers under Option Year I for the manufacture and delivery of additional quantities of the AN/ARC-210 family of radio equipment in support of Navy, Air Force, Marine Corps, and Foreign Military Sales customers. Work will be performed in Cedar Rapids, Iowa, and is expected to be completed in September 2021. No funds will be obligated at time of award. Funds will be obligated on individual orders as they are issued. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. Raytheon Missile Systems, Tucson, Arizona, is awarded $11,740,000 for not-to-exceed delivery order N0001919F2610 against a previously issued basic ordering agreement (N00019-15-G-0003) for the Navy and Air Force. This order provides for non-recurring engineering for the redesign of the Control Actuation System electronic controller and the requalification of the dimeryl diisocyanate utilized in the AIM-9X Sidewinder Block I/II/II+ missiles. Work will be performed in Santa Clarita, California (48 percent); Rocket Center, West Virginia (33 percent); and Tucson, Arizona (19 percent), and is expected to be completed in March 2021. Fiscal 2019 weapons procurement (Navy); and fiscal 2019 missile procurement (Air Force) funds in the amount of $3,471,918 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This order combines purchases for the Navy ($5,870,000; 50 percent); and the Air Force ($5,870,000; 50 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. L3 Adaptive Methods, Centreville, Virginia, is awarded a $7,674,780 cost-plus-fixed-fee modification to a previously awarded contract (N00024-15-C-5220) to exercise an option for the accomplishment of services for the Undersea Warfare and Surface Warfare command and control systems. The services include systems engineering, program management, software development, risk management, prototype development, information assurance, training, and integrated logistics support. Work will be performed in Centreville, Virginia (50 percent); and Keyport, Washington (50 percent), and is expected to be completed by December 2019. Fiscal 2019 research, development, test, and evaluation (Navy); and fiscal 2019 operations and maintenance (Navy) funding in the amount of $4,279,000 will be obligated at time of award and funding in the amount of $420,000 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. AIR FORCE Raytheon Missile Systems, Tucson, Arizona, has been awarded a $141,447,329 firm-fixed-price contract (FA8672-19-C-0010) to exercise an option to previously awarded contract FA8672-10-C-0002 for Small Diameter Bomb (SDB) II. The contractor will provide low-rate initial production for 1,260 SDB II Lot Five munitions, 389 single-weapon containers, 344 dual-weapon containers, 20 production reliability incentive demonstration effort captive vehicles, 20 production reliability incentive demonstration effort tests, 36 weapon load crew trainers/conventional munitions maintenance trainers and data. Work will be performed in Tucson, Arizona, and is expected to be completed by June 30, 2022. This award is the result of a sole-source acquisition resulting from follow-on to competition. Fiscal 2019 missile procurement funds in the amount of $141,447,329 are being obligated at the time of award. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity. Lockheed Martin Space, Sunnyvale, California, has been awarded a $7,394,373 modification (P00063) to contract FA808-12-C-0010 for Advanced Extremely High Frequency satellite vehicles 5/6. The contract modification is for Space Vehicle 5 Liquid Apogee Engine (LAE) 4-corners testing request for equitable adjustment. Work for this effort is complete. The testing of the LAE engine took place in Tokyo, Japan, the removal and replacement took place in Sunnyvale, California. Fiscal 2017 missile procurement funds will fund the contract. Total cumulative face value of the contract is $2,032,081,111. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. ARMY M.A. Mortenson Co., doing business as Mortenson Construction, Minneapolis, Minnesota, was awarded a $36,298,000 firm-fixed-price contract to design and construct a 61,515 square foot administrative facility including administrative spaces, classrooms, and secure spaces. Bids were solicited via the internet with six received. Work will be performed in Buckley Air Force Base, Colorado, with an estimated completion date of March 10, 2021. 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Goodyear Tire and Rubber Co., Akron, Ohio, has been awarded a maximum $24,047,839 fixed-price, indefinite-delivery, requirements contract for aircraft tires supporting the Global Tire Program. This was a competitive acquisition with two offers received. This is a three-year contract with no option periods. Location of performance is Ohio, with a Dec. 17, 2021, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2019 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7LX-19-D-0045). The Boeing Co., St. Louis, Missouri, has been awarded a maximum $17,040,935 firm-fixed-price delivery order (SPRPA1-18-F-0003) against a five-year basic ordering agreement (SPRPA1-14-D-002U) for F/A-18 depot level repairable parts support. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a four-year, four-month contract with no option periods. Locations of performance are Missouri, California, Florida and North Carolina, with an April 18, 2023, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2019 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. Raytheon Co., McKinney, Texas, has been awarded a maximum $9,549,053 firm-fixed-price contract for 128 display control modules for the Abrams tank. This was a sole source acquisition using justification 10 U.S. Code 2304(c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a two-year base contract with one six-month option period. The option is being exercised at the time of award. Location of performance is Texas, with an April 30, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-19-C-0070). Tennier Industries Inc.,* Delray Beach, Florida, has been awarded a $9,309,281 modification (P00007) to a one-year contract (SPE1C1-17-D-1090) with two one-year option periods for various parkas. This is a fixed-price contract. Locations of performance are Florida and Tennessee, with a Dec. 19, 2019, performance completion date. Using military services are Marine Corps and Air Force. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY General Dynamics Mission Systems, Inc., San Antonio, Texas, has been awarded a $24,916,847 modification (P00036) to previously awarded contract HR0011-16-C-0001 for classified information technology services. The modification brings the total cumulative face value of the contract to $105,016,388 from $80,099,541. Work will be performed in Arlington, Virginia, with an expected completion date of February 2020. Fiscal 2018 and 2019 research and development funds in the amount of $20,949,939 are being obligated at time of award. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1717218/source/GovDelivery/

  • Leidos awarded $7.9 billion U.S. Army tactical IT hardware contract

    September 20, 2023 | International, C4ISR

    Leidos awarded $7.9 billion U.S. Army tactical IT hardware contract

    The contract has a maximum value of $7.9 billion if all options are exercised.

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