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January 8, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Contract Awards by US Department of Defense - January 08, 2020

NAVY

Ensign-Bickford Aerospace & Defense, Simsbury, Connecticut, is awarded a $28,323,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract with a five-year ordering period and five one-year options for the MK 150 MOD 0 4.0 second Delay Detonator, and the MK 164 MOD 0 Non Electric Dual Detonator. The MN50 is a 4.0 second delay detonator with 7' of pyrotechnic lead with one non-electric delay detonator on one end and an inline initiator on the other end. The MP29 is a non-electric dual detonator with 40' of dual, no flash pyrotechnic lead with two non-electric detonators on one end and two inline initiators on the other end. They are used for demolition breaching, critical target destruction and obstacle clearing for U.S. Naval Special Warfare Command. Work will be performed in Graham, Kentucky, and is expected to be complete by January 2030. Fiscal 2019 procurement of ammunition, Navy and Marine Corps, funding in the amount of $305,486; and defense procurement funding in the amount of $149,971 will be obligated at the time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website with one offer received. The Naval Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity (N0016420DJR74).

ARMY

Dyncorp International LLC, Fort Worth, Texas, was awarded a $19,810,314 modification (P00022) to contract W58RGZ-19-C-0025 for aviation maintenance services. Work will be performed in Fort Campbell, Kentucky; Afghanistan and Iraq, with an estimated completion date of Nov. 30, 2020. Fiscal 2020 operations and maintenance, Army funds in the amount of $19,810,314 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.

https://www.defense.gov/Newsroom/Contracts/Contract/Article/2052047/source/GovDelivery/

On the same subject

  • Opinion: Why Interest On Federal Debt Matters For Defense

    July 6, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Opinion: Why Interest On Federal Debt Matters For Defense

    Byron Callan June 30, 2020 The COVID-19 pandemic has stoked consternation that U.S. defense spending is going to be significantly pressured in the 2020s. Congress will likely stick to the $740.5 billion defense discretionary top line agreed to in last year's budget deal for fiscal 2021. But the combination of trillions more in federal debt from higher spending and lower tax receipts this year and next and the probability that there will be future federal spending to better prepare for pandemics raise a higher probability of defense spending pressure. “Flat” was already the new “up,” but “flat” now may be a budget that does not keep pace with annual inflation. The fears may be that defense spending will decline in the 2020s after a couple of good years of largesse from Congress and the White House. Despite trillions in additional deficits and federal borrowing in 2020-21, there is one bright spot that indicates less dire defense spending pressures than now perceived—the interest on the federal debt. U.S. federal debt is comprised of debt held by the public and intragovernmental debt, which is owned by different federal trust funds, the largest of which is Social Security. As of May, total debt held by the public was $19.8 trillion, and intragovernmental debt was another $6 trillion. Often, these two sums are lumped together, but they should be treated separately. The interest paid on debt held by the public is dispersed by the Treasury in the form of outlays to the owners of that debt. The interest paid on intragovernmental debt is, in essence, interest the federal government pays itself. The Office of Management and Budget (OMB), in its annual projections of outlays, breaks out these two components of interest outlays to show net interest outlays. This is mandatory spending, and so it has been paid along with the other mandatory and discretionary funding the U.S. federal government provides. One of the silver linings of the pandemic has been the Federal Reserve's aggressive lowering of interest rates. This makes federal debt more affordable, much in the way that a lower interest rate on a home mortgage can make a place to live more affordable. The OMB projections released in February showed net interest outlays of $378 billion for fiscal 2021 rising to $665 billion by 2030. One could take issue with the deficit projections behind these outlay projects, as they may have rested on GDP growth expectations that were too optimistic and nondefense spending cuts that were not going to be realized. However, dividing interest outlays on debt held by the public by debt projections implied an interest rate of 3% or more over the forecast period. The pandemic has trashed those rate projections. Federal debt held by the public is offered in different maturities. Treasury bills, which mature in a year or less as of May, were 23% of the total debt held by the public. Treasury notes that mature in 1-10 years were 51%, and bonds that mature in 10-30 years were 12%. (There is another 10% of other Treasury instruments.) Rates now are much lower, although clearly that would only matter for new debt that is issued by the Treasury. The rate on a 90-day Treasury bill is currently 0.13%. On a five-year note, it is 0.33%, and on the 10-year note, 0.69%. The 30-year note rate is 1.4%. This implies that interest outlay projections should be declining, although new projections may have to wait until the White House releases its 2022 fiscal budget request and out-year projections, presumably in February-March 2021. Net interest outlays could be at least $100 billion less in 2022-23 than the February 2020 projections on higher debt but lower rates. In the scheme of total federal outlays, which the OMB projected to be $4.8 trillion for 2021, $100 billion is not a lot, but it indicates there is a bit more headroom for defense spending and other nondefense discretionary spending than a focus on federal debt alone might suggest. Federal infrastructure spending could be one area of more traction in the 2020s, and the issue of social justice may also spur more demand for federal resources. One outcome of the pandemic, however, will be to make defense expectations more sensitive to interest rate expectations. It is not too difficult to project scenarios with rising debt and interest rates that increase to more “normal” levels. The pandemic also underscores that the unthinkable should be given a bit more room on long-term projections. It is quite conceivable that a major military conflict, a massive natural disaster or another economic contraction could further add to federal debt in the 2020s. https://aviationweek.com/defense-space/budget-policy-operations/opinion-why-interest-federal-debt-matters-defense

  • UK seeks new technologies for future Royal Navy fleet

    June 14, 2019 | International, Naval

    UK seeks new technologies for future Royal Navy fleet

    By Hemanth Kumar and Talal Husseini The UK Defence and Security Accelerator (DASA) is set to launch a new competition to seek intelligent systems and technology solutions to develop a comprehensive future Royal Navy fleet. Known as ‘Intelligent Ship – The Next Generation', the competition will be officially launched in London on 19 June. Through the competition, the UK Ministry of Defence (MOD) is looking for proposals for novel and innovative projects to facilitate the wider use of intelligent systems within future warships. The MOD said in the competition document: “This aim is based on a future vision where elements of automation, autonomy, machine learning and artificial intelligence (AI) are closely integrated and teamed with human decision makers. “It is expected that this will ensure timely, more informed and trusted decision-making and planning, within complex, cluttered, contested and congested operating and data environments.” DASA will offer £1m in funding for innovative proposals under the first phase of the future Royal Navy fleet competition. An additional £3m will be made available to fund subsequent phases. The adoption of advanced technologies is seen as a pivotal move in the efforts to reduce decision times in order to meet future threat capabilities. Interested companies will have to showcase through their proposals how they would improve automation, autonomous functions, and AI-enabled decision aides. The scope also includes demonstrating how the proposals could improve speed and/or quality of decision-making and mission planning in a future naval operating environment. The MOD clarified that it does not want proposals that do not “offer significant benefit to defence and security capability”, or “offer no real long-term prospect of integration into defence and security capabilities”, or “offer no real prospect of out-competing existing technological solutions”. The MOD went on to say: “It is important that over the lifetime of DASA competitions, ideas are matured and accelerated towards appropriate end-users to enhance current or future capability. “How long this takes will be dependent on the nature and starting point of the innovation. Early identification and appropriate engagement with end-users during the competition and subsequent phases are essential.” Parties will have time until 23 July 2019 to pitch their ideas for the competition. https://www.naval-technology.com/news/uk-future-royal-navy-fleet/

  • General Dynamics Mission Systems to Build Containers for LCS - Seapower

    June 9, 2021 | International, Naval

    General Dynamics Mission Systems to Build Containers for LCS - Seapower

    Marion, Va. – General Dynamics Mission Systems was awarded a multi-million-dollar firm fixed-price contract from Northrop Grumman to provide Reduced Weight Basic Operating Assembly (RWBOA) containers for U.S. Navy littoral combat ships (LCS), the company said in a release. The containers, developed specifically for...

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