Contract Awards by US Department of Defense - January 11, 2021

On the same subject

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  April 6, 2020 | International, Aerospace

  Boeing to get $882M in withheld KC-46 funds back for COVID-19

  By: Valerie Insinna WASHINGTON — The U.S. Air Force will release $882 million to Boeing that it had retained due to ongoing technical problems involving the KC-46 tanker, the service announced Thursday. The move is meant to help the company make ends meet during the novel coronavirus pandemic. “This agreement provides Boeing $882M of withheld payments for previous non-compliance in 33 KC-46 deliveries,” the service said in a statement. “This withhold release is in line with Department of the Air Force and Department of Defense policies to maximize cash flow, where prudent, to combat coronavirus impacts on the industry base." When the U.S. Air Force agreed to take delivery of the first KC-46 tanker in January 2019, it made clear to Boeing that it still maintained a significant piece of financial leverage. The service could withhold a maximum of $28 million every time a new KC-46 was delivered — about 20 percent of the total sum due to Boeing. Air Force officials said they would hold back those funds until they saw measurable progress in fixing technical deficiencies, particularly the tanker's troubled Remote Vision System. By January, when Boeing had delivered 30 planes, the service had withheld about $800 million, according to Defense One. The Air Force and Boeing on Thursday announced a final agreement to fix the RVS, the imaging system used by boom operators to see the position of the receiver aircraft and the movements of the boom itself. According to the deal, Boeing will pay for both incremental fixes to current RVS software and hardware, as well as a complete redesign of the system with new cameras, processors and computers. Speaking with reporters about the decision on Thursday, Air Force acquisition executive Will Roper stressed that the service will be able to re-enact the cost penalties if Boeing's performance begins to slip. However, the service wanted to ensure that Boeing has the funding it needs to begin the RVS redesign, which it is calling RVS 2.0. “Have we given up our leverage? No, I think we've used it well," he said. “Part of what we committed to Boeing is to do an expedited review over the next 120 days for the 159 outstanding noncompliances. Boeing asserts that they have addressed those noncompliances, and we are going to review those quickly. We will not instate withholds over the 120 period, but if we put that some of the corrections that have been put in place don't make our requirement, then we will start withholds again.” As the largest maker of commercial planes in the United States, Boeing has been hit particularly hard by the COVID-19 pandemic, which has spurred travel restrictions and called into question commercial airlines' ability to pay for Boeing aircraft already on order. Meanwhile, Boeing announced last week that it would shutter operations for two weeks at its facilities in the Seattle, Washington, area due to the high number of COVID-19 cases in the state. Those production operations include the manufacturing of the KC-46 at Everett and the P-8 submarine-hunting plane in Renton. The Air Force intends to buy 179 tankers over the KC-46 program of record. https://www.defensenews.com/air/2020/04/02/boeing-to-get-882m-in-withheld-kc-46-funds-back-for-covid-19

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  September 18, 2020 | International, Land

  Army backs off idea to submit its own bid in Bradley replacement competition

  Jen Judson WASHINGTON — The Army is backing off a plan for the service to submit its own bid to the Bradley Infantry Fighting Vehicle replacement competition after it indicated its intention to offer up its own design in a draft request for proposals posted in July. The service tried once before to competitively solicit designs for its Optionally Manned Fighting Vehicle (OMFV) but ended up with just one offering after its requirements proved too onerous to industry and included a requirement to deliver a working prototype to the Army by October 2019. In a statement sent to Defense News Sept. 17 from Ashley John, an Army spokeswoman, she said “As a result of industry feedback and continuous dialogue between Army senior leaders, the government will not submit a proposal in response to the OMFV RFP. A revision to the draft OMFV RFP was made today and deletes paragraph A.3.1 Interested Government Offeror in its entirety." The Army's intention to develop its own bid was met with scrutiny as industry officials questioned whether the service could play the game after service leaders had already seen industry's cards during an earlier iteration of the competition. The move, many in industry thought, would have easily teed up protests. With pressure to get the competitive process right this time in a program where the service plans to spend $4.6 billion from fiscal 2022 through FY26, it is turning to industry input earlier and more than ever. Congress questioned Army leaders earlier this year on why it seemed the service did not pay attention to the signs or listen to industry and make adjustments before having to cancel its previous competition. First, BAE Systems, which manufactures the Bradley, decided not to compete due to unachievable requirements set within a very short timeline. Then the Army had to disqualify a Raytheon and Rheinmetall team because they couldn't get a physical bid sample to Aberdeen Proving Ground, Maryland, in time. The service, this time around, reviewed and analyzed over 500 industry comments in response to the draft RFP and will now spend several weeks providing responses to industry concerns, John said. “As we continue to progress through the first-phase of our five-phased approach for the OMFV program, communication, inclusive feedback and innovative thinking from industry remains key,” John said. The Army waded back into the OMFV effort with the release of a market survey in February that tapped industry for ideas on what a future vehicle might look like. The market survey itself asked companies to weigh in on what affected their decisions to participate in the previous OMFV competitive effort and how the Army might better engage with industry this time around. Instead of providing a laundry list of requirements that when paired together became unachievable — especially when delivered over an ambitious fielding goal of 2026 — the Army will give industry roughly nine characteristics with which to work. The Army is also not requiring the delivery of physical bid samples in the first phase of competition. The Army plans to release a final RFP in December, which will results in the award of up to five contracts in June 2021. It appears likely that the Raytheon and Rheinmetall team and General Dynamics Land Systems will submit bids for the new competition. BAE Systems has not publicly said whether they plan to compete this time. https://www.defensenews.com/land/2020/09/17/army-backs-off-idea-to-submit-its-own-bid-in-bradley-replacement-competition/

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  June 26, 2019 | International, Naval

  L3 awarded $73.7M for Navy submarine photonics mast programs

  By Allen Cone June 25 (UPI) -- L3 Technologies Inc. was awarded a $73.7 million contract for repair, upgrades and overall services for the U.S. Navy's submarine photonics mast programs. Ninety-eight percent of the work will be performed at the company's plant in Northampton, Mass., the Department of Defense announced Monday, and is expected to be completed by June 2025. Naval fiscal 2019 other procurement funding in the amount of $2.1 million will be obligated on the first delivery order at time of award and will not expire at the end of the current fiscal year. A photonics mast is a sensor on a submarine that functions much like a periscope but without requiring a periscope tube. This prevents water leakage in the event of damage. Virginia-class submarines include two photonics masts that host visible and infrared digital cameras atop telescoping arms, allowing the ship's control room to moved down one deck and away from the hull's curvature, according to the Navy. The non hull-penetrating device significantly reduces the signature of the periscope, "making it less identifiable as a U.S. Navy submarine because it appears similar to existing periscopes," according to L3. In 2013, L-3 was awarded a $48.7 million contract from the Naval Sea Systems Command to develop and build a new, slimmer version of its photonics mast for use on Virginia-class submarines. L-3 was contracted to produce up to 29 photonics masts over a subsequent four-year period, as well as engineering services and provisioning item orders with a contract maximum ceiling value of $157 million. The newest variant is the Block 4, including the Vermont, which was christened in 2018 and became the 19th in the Virginia class. Nine other subs are currently under construction, according to the Navy. L-3, which is one the leading submarine imaging providers in the world, will officially merge with Harris Corporation in an all-stock deal that will close on Saturday after receiving regulatory approval. "Receiving these approvals marks the successful completion of a thorough regulatory review process - clearing the way for one of the largest mergers in defense industry history," William M. Brown, Chairman, CEO and president of Harris, said in a statement. The company will be named L3Harris Technologies, Inc. Harris provides services in three business segments: communication, electronic, and space and intelligence. https://www.upi.com/Defense-News/2019/06/25/L3-awarded-737M-for-Navy-submarine-photonics-mast-programs/4961561472563/