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February 14, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

Contract Awards by US Department of Defense - February 13, 2019

NAVY

British Aerospace Engineering Systems Technology Solutions & Services Inc., Rockville, Maryland (N00421-D-0035); Coherent Technical Services Inc.,* Lexington Park, Maryland (N00421-D-0036); Engility Corp., Andover, Maine (N00421-D-0037); J.F. Taylor Inc., Lexington Park, Maryland (N00421-D-0038); KBRwyle Technology Solutions LLC, Columbia, Maryland (N00421-D-0039); Lockheed Martin Rotary and Mission Systems, Manassas, Virginia (N00421-D-0040); and Valkyrie Enterprises Inc.,* Virginia Beach, Virginia (N00421-D-0041), are each awarded indefinite-delivery/indefinite-quantity contracts. The estimated aggregate ceiling for all contracts is $235,005,530, with the companies having an opportunity to compete for individual orders. These contracts provide for Air Traffic Control and Landing Systems Operations Onboard Ship and Shore support services for the Naval Air Warfare Center Aircraft Division (NAWCAD) - Air Traffic Control and Landing Systems Division (NAWCAD 4.11.7). Services to be provided include operational, technical, logistical and system engineering support for system certification; technical assistance; systems analysis and engineering; test and evaluation; installation and maintenance; hardware design, development, technical logistics support; configuration management; training support; equipment manufacturing; quality control; and project management of Mobile Air Battle management systems and communication-electronic systems. Work will be performed in St. Inigoes, Maryland (20 percent); and at various contractor locations within the continental U.S. (80 percent), and is expected to be completed in February 2024. 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, with seven offers received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity.

Diversified Maintenance Systems,* Sandy, Utah, is awarded a maximum amount $49,000,000 indefinite-delivery indefinite quantity contract for commercial and institutional building construction alterations, renovations, and repair projects at Naval Air Weapons Station China Lake, California. Projects will be primarily design-bid-build (fully designed) task orders or task order with minimal design effort (e.g. shop drawings). Projects may include, but are not limited to, alterations, repairs, and construction of administration buildings, maintenance/repair facilities, aircraft control towers, hangars, fire stations, office buildings, laboratories, dining facilities and related structures. Work will be performed in Ridgecrest, California. The term of the contract is not to exceed 60 months with an expected completion date of January 2024. Fiscal 2019 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). This contract was competitively procured via the Navy Electronic Commerce Online website, with eight proposals received. The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-19-D-2612).

The Boeing Co., Huntington Beach, California, is awarded a $43,000,000 fixed-priced-incentive modification to previously awarded contract N00024-17-C-6307 for the fabrication, test, and delivery of four Orca Extra Large Unmanned Undersea Vehicles (XLUUVs) and associated support elements. The Orca XLUUV will be an open architecture, reconfigurable Unmanned Undersea Vehicle. The Orca XLUUV will be modular in construction with the core vehicle providing guidance and control, navigation, autonomy, situational awareness, core communications, power distribution, energy and power, propulsion and maneuvering, and mission sensors. The Orca XLUUV will have well-defined interfaces for the potential of implementing cost-effective upgrades in future increments to leverage advances in technology and respond to threat changes. The Orca XLUUV will have a modular payload bay, with defined interfaces to support current and future payloads for employment from the vehicle. The competition for XLUUV requirements is still in source-selection, and therefore the specific contract award amount is considered source-selection sensitive information (see 41 U.S. Code 2101, et seq., Federal Acquisition Regulation 2.101 and 3.104) and will not be made public at this time. Work will be performed in Huntington Beach, California (29 percent); Virginia Beach, Virginia (27 percent); Waukesha, Wisconsin (8 percent); East Aurora, New York (7 percent); Concord, Massachusetts (7 percent); Camden, New Jersey (5 percent); Smithfield, Pennsylvania (4 percent); Attleboro, Massachusetts (3 percent); City of Industry, California (3 percent); El Cajon, California (3 percent); Fairfield, New Jersey (2 percent); Ontario, California (1 percent); and Farmingdale, New York (1 percent), and is expected to be complete by June 2022. Fiscal 2019 research, development, test, and evaluation (Navy) funds in the amount of $43,000,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

Lockheed Martin Corp., Fort Worth, Texas, is awarded $14,498,758 for modification P00009 to a previously awarded fixed-price incentive firm contract (N0001918C1048) to provide for initial lay-in of repair material for seven F-35 Lightning II systems at various depots in support of the Air Force, Marine Corps, Navy, non-U.S. Department of Defense (DoD) participants, and Foreign Military Sales (FMS) customers. Work will be performed in Orlando, Florida (34 percent); Fort Worth, Texas (27 percent); Jackson, Mississippi (16 percent); Windsor Locks, Connecticut (16 percent); St. Louis, Missouri (4 percent); and East Aurora, New York (3 percent), and is expected to be completed in July 2024. Fiscal 2017 aircraft procurement (Marine Corps, and Navy); fiscal 2018 aircraft procurement (Air Force); non-U.S. DoD participant; and FMS funds in the amount of $14,498,758 are being obligated at time of award, $4,582,113 of which will expire at the end of the current fiscal year. This contract combines purchases for the Air Force ($6,332,003; 43.68 percent); Marine Corps ($3,128,745; 21.58 percent); Navy ($1,453,368; 10.02 percent); non-U.S. DoD Participants ($2,470,964; 17.04 percent), and FMS customers ($1,113,678; 7.68 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

EPS Corp., Tinton Falls, New Jersey, is awarded a $10,980,406 modification to a previously awarded hybrid cost-plus-fixed-fee, firm-fixed price, indefinite delivery/indefinite quantity contract (N00174-17-D-0026) to exercise an option for technical expertise in the development and testing of underwater weapons and underwater weapons systems components. This requirement is to develop an underwater weapons system acquisition/procurement program that provides underwater weapons systems (including authentic foreign mines) for research, development, test and evaluation of underwater weapons systems and mine countermeasures systems. Work will be performed in Tinton Falls, New Jersey (95 percent); Montenegro (2 percent); Bulgaria (2 percent); and Italy (1 percent), and is expected to be complete by February 2020. No additional funds are being obligated at the time of this action. The Naval Surface Warfare Center Indian Head Explosive Ordnance Disposal Technology Division, Indian Head, Maryland, is the contracting activity.

Detyens Shipyards Inc., North Charleston, South Carolina, is awarded a $10,517,749 firm-fixed-price contract for a 50-calendar day shipyard availability for the regular overhaul and dry docking of USNS William McLean (T-AKE 12). Work will include clean and gas-free tanks, voids, cofferdams and spaces, main engine and electric motor maintenance, 10-year crane maintenance and recertification, dry-docking and undocking, propeller shaft and stern tube inspect, freshwater (closed loop) stern tube lubrication, underwater hull cleaning and painting, 2.5-year bow thruster maintenance and tunnel grating modification, renew flight deck nonskid, and auxiliary pre-stage area refrigeration installation. The contract includes options which, if exercised, would bring the total contract value to $10,583,543. Work will be performed in North Charleston, South Carolina, and is expected to be completed by July 16, 2019. Fiscal 2019 operations and maintenance (Navy) funds in the amount of $10,517,749 are obligated at the time of award and funds will not expire at the end of the current fiscal year. This contract was competitively procured with proposals solicited via the Federal Business Opportunities website, with two offers received. The U. S. Navy's Military Sealift Command, Norfolk, Virginia, is the contracting activity (N3220519C6002).

AIR FORCE

Nimbis Services Inc.,* Oro Valley, Arizona, has been awarded a ceiling increase of $49,500,000 to their indefinite-delivery/indefinite-quantity (IDIQ) contract with cost-plus-fixed-fee task orders for research and development. The Trusted Silicon Stratus contract's objective is to achieve an initial operational capability of a novel microelectronics life-cycle verification ecosystem implemented to enhance microelectronics supply chain risk management. Work will be performed in Columbus, Ohio. There are two orders currently on this IDIQ. The first task order (FA8650-18-F-1605) is expected to be complete by July 30, 2021, and the second task order (FA8650-18-F-1656) is expected to be completed by Nov. 30, 2021. Fiscal 2018 and 2019 research, development, test and evaluation funds will be obligated on future task orders. Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity.

Tau Technologies LLC, Albuquerque, New Mexico, has been awarded a cost reimbursement type contract with a base period contract price of $8,913,357 for directed energy modeling for cross-domain analysis. This contract seeks to advance directed energy technologies and weapon systems in engagement and mission-level analysis to enable data-driven wargaming, military utility assessments, and weaponeering. Work will be performed in Albuquerque, New Mexico, and is expected to be completed May 31, 2023. Fiscal 2019 research, development, test and evaluation funds in the amount of $300,000 will be obligated at the time of award. Air Force Research Laboratory, Kirtland Air Force Base, New Mexico, is the contracting activity (FA9451-19-C-0002).

ARMY

Phylway Construction LLC,* Thibodaux, Louisiana, was awarded a $48,654,095 firm-fixed-price contract for Mississippi River levee construction. Bids were solicited via the internet with six received. Work will be performed in New Orleans, Louisiana, with an estimated completion date of Feb. 21, 2021. Fiscal 2019 operations and maintenance Army funds in the amount of $48,654,095 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-19-C-0015).

DEFENSE LOGISTICS AGENCY

Lions Services, Charlotte, North Carolina, has been awarded a maximum $11,403,650 modification (P00020) exercising the second one-year option period of a one-year base contract (SPE1C1-17-D-B008) with two one-year option periods for advanced combat helmet chinstraps and hardware. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are North Carolina and Texas, with a Feb. 16, 2020, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019, through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

WASHINGTON HEADQUARTERS SERVICES

CompQsoft Inc., Leesburg, Virginia, has been awarded a $7,710,468 a hybrid contract which includes firm-fixed-price labor hour and time and materials contract line item numbers. The contract is to provide audio-visual/video conference support services, by Joint Service Provider to supported agencies in the most efficient manner possible. Work performance will take place primarily in the National Capital Region, including the Pentagon, Mark Center and Crystal City, Virginia. Fiscal 2019 operations and maintenance funds in the amount of $7,710,468 are being obligated on this award. The expected completion date is Sept. 29, 2023. Washington Headquarters Services, Arlington, Virginia, is the contracting activity (HQ0034-18-C-0118).

DEFENSE INFORMATION SYSTEMS AGENCY

Solers Inc., Arlington, Virginia, was awarded an indefinite-delivery/indefinite-quantity (ID/IQ) contract for Systems Engineering, Technology, and Innovation. This was a competitive solicitation for a multiple-award ID/IQ contract, with an unrestricted pool and a pool set-aside for small businesses. The original awards for the unrestricted pool were initially made in June 2018. Four post-award protests were submitted to the Government Accountability Office (GAO). Following the GAO decisions, issued in October 2018, the agency took corrective action that resulted in the decision to award a contract to Solers Inc. The face value of this action is a ceiling amount of $7,500,000,000. The awardee will each receive a minimum guarantee of $500 applicable to the base ordering period only. All other funding will be obligated at the task order level. The primary performance will be at Defense Information Systems Agency Headquarters, Fort Meade, Maryland, as well as contractor facilities and DoD locations worldwide to be determined at the task order level. The period of performance is a five-year base period with one five-year option period. The Defense Information Technology Contracting Organization, National Capital Region, is the contracting activity (HC1047-19-D-2015).

*Small Business

https://dod.defense.gov/News/Contracts/Contract-View/Article/1757113/source/GovDelivery/

On the same subject

  • U.S. Air Force Launches Three-Year Fielding Plan For Skyborg Weapons

    July 31, 2020 | International, Aerospace

    U.S. Air Force Launches Three-Year Fielding Plan For Skyborg Weapons

    Steve Trimble July 07, 2020 The next combat aircraft to enter the U.S. Air Force inventory will not be a manned sixth-generation fighter or even the Northrop Grumman B-21. By fiscal 2023, the Air Force expects to deliver the first operational versions of a new unmanned aircraft system (UAS) called Skyborg, a provocative portmanteau blending the medium of flight with the contraction for a cybernetic organism. The Skyborg family of aircraft is expected to fill an emerging “attritable” category for combat aircraft that blurs the line between a reusable UAS and a single-use cruise missile. July 8 award date for Skyborg contracts Leidos is managing autonomy mission system As the aircraft are developed, Skyborg also will serve as the test case of a radical change in acquisition philosophy, with ecosystems of collaborative software coders and aircraft manufacturers replacing the traditional approach with a supply chain defined by a single prime contractor. The Air Force also plans to manage the Skyborg aircraft differently than other UAS. Although Air Combat Command (ACC) is considering the Skyborg family as a replacement for pre-Block F-16s after 2025 and MQ-9s after 2030, the aircraft is not likely to fit neatly into an existing force structure with dedicated Skyborg squadrons. “Even though we call Skyborg an attritable aircraft, I think we'll think of them more like reusable weapons,” says Will Roper, assistant secretary of the Air Force for acquisition, technology and logistics. The Skyborg is an attritable weapon, which means key components such as the jet engine will be designed with a short service life. Credit: AFRL via YouTube The Skyborg propulsion systems—including expendable subsonic and supersonic jet engines—will be rated with a fraction of the service life expected of a fully reusable UAS or manned aircraft. “We'll do whatever number of takeoffs and landings they're ‘spec'd' for, and then we'll attrit them out of the force as targets and just buy them at a steady rate,” Roper says. Starting in fiscal 2023, a concept of operations for a formation of four Lockheed Martin F-22s will include Skyborgs as part of the manned aircraft's load-out. “I expect that the pilots, depending on the mission, [will] decide: Does the Skyborg return and land with them and then go to fight another day, or is it the end of its life and it's going to go on a one-way mission?” Roper explains. In some cases, the pilot may decide a target is important enough that it is worth the loss of a Skyborg, even if its service life has not been used up, he adds. As the concept evolves, a diverse array of Skyborg aircraft designs will likely find roles beyond the air combat community, Roper says. “I don't think it'll just be fighters,” he says. “I think they'll fly with bombers. I think they'll fly with tankers to provide extra defensive capability. That's what I love about their versatility and the fact that we can take risks with them.” Skyborg is often presented as the epitome of the “loyal wingman” concept, in which one or multiple UAS are controlled or managed by a manned aircraft to perform a variety of surveillance, support and strike tasks during a mission. But the aircraft also could have the ability to operate independently of a manned aircraft, with the capability to launch and recover hundreds of such systems without the need for runways or even bases. The Kratos XQ-58A, which achieved first flight in March 2019, is one of several potential members of the Skyborg UAS family. Credit: U.S. Air Force “If [China and Russia] know that they have to target only tens or even hundreds of ports and airfields, we have simplified their problem,” says ACC chief Gen. Mike Holmes. The new class of attritable aircraft, he says, are designed so that “we can still provide relevant high-tempo combat power to be freed up from a runway.” If Skyborg is the future, it begins on July 8. The Air Force Research Laboratory (AFRL) is due on the second Wednesday of this month to award a contract to start developing the first in a family of experimental UAS bearing the name Skyborg. The AFRL already has a stable of potential concepts. The Kratos XQ-58A Valkyrie, which has flown four times since March 2019, is the most visible example of the AFRL's Low-Cost Attritable Aircraft Technology platform. Meanwhile, the Low-Cost Attritable Aircraft Platform--Sharing project quietly kept several UAS industry leaders involved in design studies, including Boeing, General Atomics Aeronautical Systems Inc., Lockheed Martin and Northrop Grumman. Each company selected will be awarded a contract with a maximum value of $400 million over a five-year ordering period. But the core of the Skyborg program is the software; specifically, the military aviation equivalent of the algorithm-fed convolutional neural networks that help driverless cars navigate on city streets. In announcing Leidos on May 18 as the Skyborg Design Agent (SDA), the AFRL selected the same company that delivered the software “brain” of the Navy's Sea Hunter unmanned surface vehicle, which navigated from San Diego to Honolulu in 2018. As SDA, Leidos' role is to deliver a software core that uses artificial intelligence to learn and adapt as the aircraft flies. The autonomy mission system core—as integrated by Leidos from a combination of industry and government sources—will be inserted into multiple low-cost UAS designed by different companies, with each configured to perform a different mission or set of missions. That is how the Skyborg program is set up today, but that is not how it started. Roper created the original “Skyborg” term and concept when he led the Strategic Capabilities Office within the Office of the Secretary of Defense in 2012-17. Roper transferred Skyborg to the AFRL, where it was renamed Avatar. A year after taking over Air Force acquisition in 2017, Roper changed the name back to Skyborg and created a program office in October 2018. In March 2019, Roper revealed the Skyborg concept to a group of reporters a week before the AFRL issued the first request for information to industry about the program. At that time, Skyborg was still organized more traditionally, with plans to select a single contractor to serve as a prime integrator. By early 2020, program officials reorganized Skyborg into modular hardware and software subcomponents built on an open architecture that requires no prime integrator. As the acquisition strategy has evolved, so has the Air Force's thinking about how to use the Skyborg family of systems. “The whole idea was [that] the contested environment is going to be challenging, it's going to be uncertain, and so it makes the most sense to have something that doesn't have a pilot in it to go into the battlefield first,” Roper says. “But once you agree that's a self-evident operational concept, it opens up the door for a lot of nontraditional thinking for the Air Force.” After a 2-3 year experimental phase, the AFRL plans to deliver an early operational capability in fiscal 2023. Follow-on operational Skyborgs could be funded within the Next-Generation Air Dominance (NGAD) project or through a separate program of record. The Skyborg concept even has links to the Air Force's architecture for the Advanced Battle-Management System (ABMS). “Attritable-ONE,” which is defined as having “multirole attritable capabilities,” is one of about 30 product lines in the ABMS architecture. “Skyborg and the AttritableONE teams are closely coordinated for planning and collaboration purposes,” the AFRL informed industry in response to questions about the Skyborg solicitation. The aircraft supplier must deliver a highly flexible design. Leidos, the design agent, will provide the autonomous mission system that will serve as the pilot, flight control computer and mission systems operator for the aircraft. But the “size, weight, power and cooling details for the Skyborg core autonomy system have not been finalized,” the AFRL told the bidding companies. “The majority of the system will be software-based and integrate with the sensors onboard the host aircraft,” the AFRL says. “Extensive collaboration between the Skyborg system design agent and the participants in this [contract] is expected.” https://aviationweek.com/ad-week/us-air-force-launches-three-year-fielding-plan-skyborg-weapons

  • Acorn Growth Companies Acquires Robbins-Gioia

    August 5, 2019 | International, Aerospace, C4ISR

    Acorn Growth Companies Acquires Robbins-Gioia

    OKLAHOMA CITY--(BUSINESS WIRE)--Acorn Growth Companies, a private equity firm investing exclusively in aerospace, defense and intelligence, announced today the investment and controlling interest in Robbins-Gioia, a market leader in providing unique systems modernization and enterprise solutions focused on enhancing capabilities and improving performance and readiness for the federal government and industry. “Our investment in Robbins-Gioia represents our ongoing commitment in supporting the nation's requirements to modernize, streamline and secure its information technology architecture,” said Rick Nagel, managing partner of Acorn Growth Companies. “Robbins-Gioia's expertise in complex, enterprise-wide systems modernization, as well as the deeply embedded nature of its proprietary software products in critical military MRO systems have positioned the company for strong future growth. As the federal government continues to focus on systems modernization and warfighter readiness, we expect Robbins-Gioia will continue to deliver thought leadership and innovative solutions in support of these missions.” Headquartered in Alexandria, Virginia, Robbins-Gioia was the first firm to specialize in systems modernization solutions for the federal government and industry – transforming how they deliver and maintain readiness. The firm has evolved to be globally recognized for delivering purpose-built solutions to diverse challenges in business and government that modernize, secure and make its information technology architecture more efficient and effective through managed services, management consulting and innovative software tools, including The Jaguar Family of Advanced Scheduling Tools (JFAST™). JFAST is Robbins-Gioia 's premier suite of software tools for planning, analysis and management of complex, mission-critical activities for defense organizations. Robbins-Gioia enables the readiness of some of the nation's most critical military assets – keeping aircraft flying and ships sailing, using its JFAST scheduling systems. “We're excited to be partnered with Acorn Growth Companies,” said Brad King, CEO of Robbins-Gioia. “Acorn has a strong track record of success investing in and enabling the growth of companies within aerospace, defense and intelligence. With its tremendous network and planned investments in our people, processes and products, we see this partnership with Acorn as a key driver in the achievement of our vision to be the leader in delivering modernization and transformation for the federal government and similarly complex enterprises.” Terms of the transaction were not disclosed. About Robbins-Gioia Founded in 1980, Robbins-Gioia was the first firm specializing in program management services for the federal government. Today, they are the market leader in providing unique systems modernization and enterprise solutions focused on enhancing capabilities and improving performance and readiness for the federal government and industry. They deliver purpose-built solutions to diverse challenges in business and government through managed services, management consulting and software tools including JFAST™, RG's premier suite of software tools for planning, analysis, and management of complex, mission-critical activities for defense organizations. www.teamrg.com Acorn Growth Companies is a middle market private equity firm focused exclusively on Aerospace, Defense and Intelligence. Acorn invests solely in operating companies that strive to enhance global mobility and protect national interests. Acorn has a formidable reputation in the industry and is recognized for its deep understanding of the aerospace & defense markets, with proprietary access to the best companies within these sectors. With operational expertise and its ability to lead and manage investments through variable economic and industry cycles, Acorn works in tandem with management to build its portfolio companies into significant market leaders. AcornGrowthCompanies.com https://www.businesswire.com/news/home/20190805005409/en

  • What the Pentagon should (and should not) get in the next stimulus bill

    April 28, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    What the Pentagon should (and should not) get in the next stimulus bill

    By: Mackenzie Eaglen As Washington begins to draft another stimulus spending bill to combat coronavirus, the Pentagon needs a new plan to articulate its needs to lawmakers. Simply submitting unfunded lists whole cloth comes across as tone deaf and opportunistic. A better plan would be to focus on the health, safety and continuity of all the Pentagon's workforce: uniformed, civilian and contractor. Capitol Hill is (virtually) busy as ever these days, completing another injection of funds into the Coronavirus Aid, Relief and Economic Security Act last week. Congress and the White House will now begin formulating a phase 4 bill. President Donald Trump and House Speaker Nancy Pelosi have indicated they would both like to see domestic infrastructure spending inside. Negotiations are just beginning, but this bill will open the spending aperture compared to the CARES Act. For national defense, this legislation must focus on taking care of people and protecting jobs. Even as the U.S. military mobilizes to support the fight against COVID-19, the disease is hitting the Defense Department and its workforce much the same as the rest of America. The first order of business is for the Pentagon to ensure health and wellness for service members, their families, civilians and contractors by encouraging safe and flexible work policies. The Pentagon will need additional funding to pay for COVID-19 support deployments, mitigate the effects of stop-movement orders, increase the availability of personal protective equipment and sanitation, and expand its IT infrastructure for telework. Second, Congress and the Pentagon should provide financial assistance to the thousands of small businesses, subcontractors and suppliers to defense contractors building weapons, conducting maintenance or developing classified software. The defense-industrial base is built for maximum efficiency, not resiliency. Even seemingly minor production pauses of weeks are combining with broader quarantine restrictions to wreak havoc on program schedules. While the Pentagon has many tools at its disposal — accelerating awards and progress payments as well as lifting contracting restrictions — the acquisition team simply cannot respond to this crisis without more resources available. Absent additional liquidity, contractors face the impossible choice between letting workers go or facing the reality that they will have no jobs to return to. Small businesses and subcontractors are particularly vulnerable, as they have far less slack to respond to crises. Many live contract to contract, as indicated by a 2018 Department of Defense report on industrial base fragility. These small firms providing needed materials, labor and technology to companies designated as “essential” are struggling with COVID like everyone else. Their employees are either afraid to come to work out of fear of contraction and contagion, or they're sick with the virus. The vicious cycle — where people want to work but can't — means schedules slip. If there is no work, there is no revenue, which means layoffs. Already around the country, a major defense contractor had to shut down two plants; a shipbuilder is struggling to get employees to show up; another defense firm has laid off employees; and still others can't get to work because classified spaces are off limits. To ensure workforces remain intact, lawmakers need to move quickly to pay contractors who cannot work because of COVID-19 effects, as delays are now averaging three months. Fixing this is as simple as measuring the impact of COVID-19 on contracts and ensuring a reasonable payment for that delay, which will be billions of dollars, according to acquisition czar Ellen Lord. It's no different than legal remedies for “acts of God.” Also, the DoD can consider a subset of its unfunded priorities list to get projects on contract that are executable very quickly and inject liquidity into the defense contractor workforce. These unfunded priorities run the gamut, from weapons production to software development. Similarly, there are always “incremental” projects that can be accelerated, like facilities sustainment and depot maintenance. Using unfunded priorities to inject liquidity into the defense-industrial base isn't the ideal tool, but all options must be brought to bear to deal with this crisis. The majority of defense dollars allocated to the big prime contractors go back out the door to their suppliers and vendors — many of which are small businesses. While many of the easiest financial levers to pull involve getting contracts to primes, Congress and the Pentagon need to emphasize that this money — whether it be new contracts, accelerated contracts or increased progress payments — must be passed on to major suppliers and subcontractors. If the behemoths of defense industry don't share the wealth and take care of their supply chain, there won't be more money, contracts or authority for additional progress payments from Congress. Contractor leadership must take care of workers — including those of its vendors. Lastly, Congress can provide Defense Production Act Title III funding to directly target injections of cash to the emergent needs of small businesses and subcontractors, including many up-and-coming innovative firms and single-source suppliers. So far, DPA funding has been focused on contracting for additional personal protective equipment, but the DPA was equally built to protect the defense-industrial base. The industrial base was already hurt by the Budget Control Act, and it's been busy rebuilding under Trump, only to get whacked again by COVID-19. Employees need to know the work is there, their safety is a priority and their jobs are safe. If the Pentagon and primes don't take care of their suppliers and subcontractors, the defense-industrial base will contract again, losing crucial skills and talents permanently — and possibly seeing those companies bought up by China. https://www.defensenews.com/opinion/commentary/2020/04/27/what-the-pentagon-should-and-should-not-get-in-the-next-stimulus-bill/

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