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September 20, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

Contract Awards by US Department of Defense - September 19, 2019

NAVY

HII Fleet Support Group LLC, Virginia Beach, Virginia (N00039-19-D-0010); Cambridge International Systems Inc., Arlington, Virginia (N00039-19-D-0011); KBRwyle Technology Solutions LLC, Columbia, Maryland (N00039-19-D-0012); M.C. Dean Inc., Tysons, Virginia (N00039-19-D-0013); Parsons Government Services Inc., Pasadena, California (N00039-19-D-0014); Serco Inc., Herndon, Virginia (N00039-19-D-0015); SigNet Technologies Inc., Beltsville, Maryland, (N00039-19-D-0016); and VT Milcom Inc., Virginia Beach, Virginia (N00039-19-D-0017), are being awarded a $968,150,000 indefinite-delivery/indefinite-quantity, cost-plus-incentive fee, fixed-price-incentive-firm-target, cost-plus-fixed-fee, firm-fixed-price multiple award contract (MAC) to provide worldwide installation services for all shore-based command, control, communications, computer, intelligence, surveillance and reconnaissance (C4ISR) and supporting systems, current and future, under the cognizance of the Naval Information Warfare Systems Command (NAVWAR). C4ISR installation services include decommissioning and modernization of existing shore facilities, as well as installation design and installation of integrated C4ISR systems, program and project management, engineering design, industrial work, troubleshooting, operational verification, end-user training and other installation services and material necessary to accomplish NAVWAR C4ISR maintenance, modernization and new system installation. Work will be performed in various worldwide locations based on the requirement for each task order placed. This 10-year contract includes one five-year base ordering period and one five-year option ordering period that, if exercised, would bring the potential contract value to $968,150,000. If the option is exercised, ordering could continue until September 2029. No contract funds will be obligated on the basic MAC awards. Contract funds in the amount of $5,000 will be obligated on the first task order under each contract utilizing fiscal 2019 operations and maintenance (Navy). All awardees will have the opportunity to compete for task orders during the ordering period. The types of funding to be obligated include fiscal 2019 operations and maintenance (Navy); fiscal 2019 other procurement (Navy); and 2019 research, development, test and evaluation (Navy). Contract funds will not expire at the end of the current fiscal year. This requirement was solicited using full and open competition via the NAVWAR e-Commerce Central website and the Federal Business Opportunities website, with nine offers received. The Naval Information Warfare Systems Command, San Diego, California, is the contracting activity.

Black Construction Corp., Barrigada, Guam, is being awarded a $177,999,500 firm-fixed-price contract for the replacement of Andersen Housing Phases I, II and III, Naval Support Activity Andersen, Guam. The work to be performed includes the construction of duplex buildings of reinforced concrete and/or pre-cast reinforced concrete typhoon shelter/housing structures. The new duplex buildings replace an equivalent number of existing duplexes. The new housing units are to be designed vent-less and using hot humid design principles that apply to the Guam environment. These housing unit structures are to be built with reinforced concrete foundations, concrete floors, concrete walls, and concrete sloped roofs designed for 170 mph wind speed to withstand Guam's frequent typhoons. Work will be performed in Yigo, Guam, and is expected to be completed by June 2022. Fiscal 2019, 2018 and 2017 family housing, (Navy) contract funds in the amount of $177,999,500 are obligated on this award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website with five proposals received. The Naval Facilities Engineering Command, Pacific, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity (N62742-19-C-1309).

International Enterprises Inc., Talladega, Alabama, is being awarded an $85,739,062 five-year requirement type, firm-fixed-priced contract for repair of the digital display indicator system in support of the F/A-18 aircraft. This is a five-year contract with no option periods. Work will be performed in Talladega, Alabama (99 %); and Haifa, Israel (1 %). Work is expected to be completed by September 2024. Fiscal 2019 annual working capital funds (Navy) in the amount of $2,539,963 will be issued at time of award and will not expire at the end of the current fiscal year. One company was solicited for this sole sourced requirement under authority 10 U.S. Code 2304 (c)(1), with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity. (N00383-19-D-VV01)

RQ Construction LLC, Carlsbad, California, is being awarded a $57,860,000 firm-fixed-price contract for construction of P-160 solid waste facility at Naval Station Guantanamo Bay (NSGB). The work to be performed provides for the construction of a solid waste management building and a maintenance building, required to comply with the Environmental Final Governing Standards, Cuba and the Overseas Environmental Baseline Guidance Document, and to manage all solid waste generated at NSGB. Work will be performed in Guantanamo Bay, Cuba, and is expected to be completed by March 2022. Fiscal 2019 military construction, (Navy) contract funds in the amount of $57,860,000 are obligated on this award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website with two proposals received. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity (N69450-19-C-0501).

Marvin Engineering Co. Inc., Inglewood, California, is being awarded a $42,395,430 firm-fixed-price contract for 770 F/A-18E/F LAU-127 E/A guided missile launchers for the Navy (567); and the governments of Kuwait (185) and Switzerland (18). Work will be performed in Inglewood, California, and is expected to be completed in May 2024. Fiscal 2017 and 2019 aircraft procurement (Navy); and Foreign Military Sales (FMS) funds in the amount of $42,395,430 will be obligated at time of award, $19,270,650 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(a)(2)(ii)(B). This contract combines purchases for the Navy ($31,218,453; 74 %); and the governments of Kuwait ($10,185,915; 24 %) and Switzerland ($991,062; 2 %) under the FMS program. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N0001919C0076).

Progeny Systems Corp.,* Manassas, Virginia, is being awarded a $34,151,512 fixed-price-incentive-firm target, cost-plus-fixed-fee, and cost only contract for Navy systems engineering services. This contract includes options, which, if exercised, would bring the cumulative value of this contract to $81,944,297. Work will be performed in Charleroi, Pennsylvania (74 %); and Manassas, Virginia (26 %). Fiscal 2018 research, development, test and evaluation (Navy); and fiscal 2019 other procurement (Navy) funding in the amount of $19,926,668 will be obligated at time of award, and $5,703,725 will expire at the end of the current fiscal year. This contract was not competitively procured. In accordance with 10 U.S. Code 2304(c)(5), authorized or required by Statute 15 U.S.C. 638(r)(4) states: “To the greatest extent practical, Federal agencies and Federal prime contractors shall issue Phase III awards relating to technology, including sole source awards, to the SBIR and STTR award recipients that developed the technology.” The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-6201).

Rolls-Royce Corp., Indianapolis, Indiana, is being awarded a $23,746,128 task order (N6134019F0166) against a previously awarded indefinite-delivery, requirement contract (N6134019D0004). This order procures high pressure compressor stator vane assemblies to support T-45 F405-RR-401 Adour engines. Work will be performed in Kingsville, Texas (45 %); Meridian, Mississippi (44 %); Pensacola, Florida (10 %); and Patuxent River, Maryland (1 %), and is expected to be completed no later than February 2023. Fiscal 2018 and 2019 aircraft procurement (Navy) funds in the amount of $23,746,128 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity.

Communications & Power Industries, Microwave Power Products Division, Palo Alto, California, is being awarded a $20,470,000, firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the procurement of evaluations, repairs, rebuilds, and production of the Simplified Driver Traveling Wave Tubes (SDR TWTs). Communications & Power Industries is the only known source, which has the capability to evaluate, produce, repair, and rebuild the SDR TWT within the required schedule. SDR TWTs are microwave tubes installed in the AN/SPY-1D(V) Radar System on board the DDG 51 Class AEGIS destroyers, AEGIS Ashore, and Foreign Military Sales (FMS) DDG ships. The procurement is in support of Navy new ship construction, AEGIS Ashore, Navy ship sustainment, and FMS cases. Work will be performed in Palo Alto, California, and is expected to be completed by June 2025. This contract includes foreign military sales to Japan and Australia. Fiscal 2016 shipbuilding and conversion (Navy); and Foreign Military Sales funding in the amount of $3,648,011 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured, Federal Acquisition Regulation 6.302-1, only one responsible source and no other supplies or services will satisfy the agency requirements. The Naval Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity (N0016419DWP21).

BAE Systems Technology Solutions & Services Inc., Rockville, Maryland, is being awarded a $19,867,103 cost-plus-fixed-fee contract modification (P00007) to a previously awarded and announced contract (N00030-19-C-0007) to provide logistics engineering and integration support of the U.S. Ohio-class and UK Vanguard-class Strategic Weapon System (SWS) platforms, including support of future concepts. Work will be performed in Saint Mary's, Georgia (47.8 %); Mechanicsburg, Pennsylvania (30.9 %); Rockville, Maryland (11.7 %); Silverdale, Washington (3.2 %);Portsmouth, Virginia (1.07 %); Mount Dora, Florida (1.07 %); NewMarket, Maryland (1.07 %); Carlisle, Pennsylvania (1.07%); Mooresboro, North Carolina (1.06 %); and Mesa, Arizona (1.06 %), with an expected completion date of Sept. 30, 2020. United Kingdom funds in the amount of $3,652,728, are being obligated on this award. Subject to the availability of funding, fiscal 2020 operation and maintenance (Navy) contract funds in the amount of $16,214,375 will be obligated. No funds will expire at the end of the current fiscal year. This contract was a sole source acquisition pursuant to 10 U.S. Code 2304(c)(1)(4). Strategic Systems Programs, Washington, District of Columbia, is the contracting Activity.

Vertex Aerospace LLC, Madison, Mississippi, is being awarded a $19,062,362 modification (P00011) to a previously awarded indefinite-delivery, indefinite-quantity contract (N61340-17-D-0005). This is modification exercises an option for Aircraft Intermediate Maintenance Department support for Chief of Naval Air Training aircraft, tenant activities, and transient aircraft at these locations. Support to be provided includes intermediate-level maintenance, repair, and logistics support services, as well as tools and equipment. Work will be performed in Pensacola, Florida (50 %); Corpus Christi, Texas (45 %); and Whiting Field, Florida (5 %), and is expected to be completed no later than September 2020. 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 Training Systems Division, Orlando, Florida, is the contracting activity.

Raytheon Missile Systems, Tucson, Arizona, is being awarded a $13,557,150 firm-fixed-price modification to previously-awarded contract N00024-19-C-5406 to exercise options for Mk 15 Close-In Weapon System (CIWS) sensor kits. CIWS is a fast-reaction terminal defense against low- and high-flying, high-speed maneuvering anti-ship missile threats that have penetrated all other defenses. The CIWS is an integral element of the Fleet Defense In-Depth concept and the Ship Self-Defense Program. Operating either autonomously or integrated with a combat system, it is an automatic terminal defense weapon system designed to detect, track, engage and destroy anti-ship missile threats penetrating outer defense envelopes. CIWS consists of three variants: Phalanx, which utilizes a six barrel Gatling gun; Land-based Phalanx Weapon System (LPWS) and SeaRAM, which replaces the gun with an 11-round Rolling Airframe Missile (RAM) guide. CIWS is currently installed on Navy and Coast Guard ships and is also in use in foreign navies. The Phalanx Block 1B CIWS weapon systems are also being installed on low-boy trailers with self-contained diesel electric power and cooling water. This configuration of the Phalanx CIWS is the Mk 15 mod 29 Land-based Phalanx Weapon System (LPWS) and has been deployed to Iraq. Work will be performed in El Segundo, California, and is expected to be completed by December 2022. Fiscal 2018 and 2019 weapon procurement (Navy) funding in the amount of $13,557,150 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.

Detyens Shipyards Inc., North Charleston, South Carolina (N3220519C6010), is being awarded a $10,880,307 firm-fixed-price contract for a 45-calendar day shipyard availability for the regular overhaul and dry-docking of USNS Medgar Evers (T-AKE 13). The contract includes options, which, if exercised, would bring the total contract value to $11,440,238. Work will be performed in North Charleston, South Carolina, and is expected to be completed by Dec. 20, 2019. Contract funds in the amount of $10,880,307 are obligated in fiscal 2019 using (Navy) working capital funds. This contract was competitively procured with proposals solicited via the Federal Business Opportunities website and two offers received. The Navy's Military Sealift Command, Norfolk, Virginia, is the contracting activity (N3220519C6010).

US21 Inc., Fairfax, Virginia, is being awarded a $10,290,684 firm-fixed-price contract for the delivery of weapons, various types of equipment, equipment accessories, organizational clothing, and in-country training under the Foreign Military Sales (FMS) Building Partner Capacity programs in support of the Bosnia-Herzegovina Counterterrorism Enhancement Program, Mongolia Defense Enhancement Program, and Philippines Defense Enhancement Program. This contract is for the governments of Boznia-Herzegovina, Mongolia, and the Philippines under the Foreign Military Sales program. Work will be performed in Fairfax, Virginia (99 %); and the Philippines (1 %), and is expected to be completed by September 2020. Fiscal 2019 FMS funding in the amount of $10,290,684 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was competitively procured using the Unison (formally Fedbid) website (with notice made to the Federal Business Opportunities website), with six offers received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-4159).

Arcturus UAV Inc.,* Petaluma, California, is being awarded an $8,281,570 modification to a previously awarded indefinite-delivery/ indefinite-quantity cost-plus-fixed-fee contract for Arcturus unmanned aerial vehicle (UAV) brand-name materials and components, hardware, and engineering services to support integration, testing and evaluation of UAV sensor system integration projects. The integrations include multiple airframes and information operations sensors, as well as custom-developed and commercially procured antennas, electronics systems and communications links. Work will be performed in Petaluma, California. This modification increases the estimated total value of the contract to $13,494,645. This ceiling increase does not obligate funds. Fiscal 2019 operation and maintenance (Navy) funding in the amount of $8,281,570 will be obligated via task/delivery orders and will not expire at the end of the current fiscal year. This modification is issued using other than full and open competition in accordance with Federal Acquisition Regulation Subpart 6.302-1 and 10 U.S. Code 2304(c)(1), only one responsible source. The Naval Information Warfare Center Pacific in San Diego, California, is the contracting activity (N66001-19-D-0018).

Desbuild Inc.,* Hyattsville, Maryland, is being awarded a $7,880,933 firm-fixed-price task order N6945019F0871 under a multiple award construction contract for the construction of P731 fire station at Naval Air Station Key West, Florida. The work to be performed provides for the construction of a one-story fire/rescue station with a pile foundation, reinforced concrete floor and concrete panel and block walls. Work will be performed in Key West, Florida, and is expected to be completed by January 2021. Fiscal 2018 military construction, (Navy) contract funds in the amount of $7,880,933 are obligated on this award and will not expire at the end of the current fiscal year. Two proposals were received for this task order. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity (N69450-16-D-1111).

DRS Laurel Technologies, Johnstown, Pennsylvania, is being awarded a $7,160,671 cost-plus-fixed-fee and cost-only modification to previously-awarded contract N00024-17-C-5200 for a ceiling increase to perform services for evaluation, implementation, proofing of equipment changes, related engineering services and repairs, modifications/alternations and government-furnished equipment repair and maintenance in support of Cooperative Engagement Capability (CEC) “Bravo” equipment. The CEC program provides a sensor network with integrated fire control capability that significantly improves strike force air and missile defense capabilities by coordinating measurement data from strike force air search sensors on CEC-equipped units into a single, integrated real-time, composite-track air picture. CEC improves battle force effectiveness by improving overall situational awareness and by enabling longer range, cooperative, multiple, or layered engagement strategies. Work will be performed in Largo, Florida, and is expected to be completed by December 2019. No funding is being obligated at time of award. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

DEFENSE LOGISTICS AGENCY

BAE Information and Electronic Systems Integration Inc., Totawa, New Jersey, has been awarded a maximum $494,879,892 contract modification (P00015) against a five-year contract (SPE4AX-15-D-9441) with one five-year option period adding two national stock numbers for receiver/processors and high band receivers in support of the ALR-56C Digital Upgrade. This is a fixed-price, cost-reimbursement incentive fee, and cost-reimbursement no fee requirements contract. Locations of performance are New Hampshire and New Jersey, with a Dec. 27, 2025, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is Defense Logistics Agency Land and Maritime, Columbus, Ohio.

Northrop Grumman, Electronic Systems, Linthicum Heights, Maryland, has been awarded a maximum $11,000,000 firm-fixed-priced delivery order (SPRPA1-19-F-KF06) against a five-year basic ordering agreement (SPE4A116G0005) for electronic surveillance in support of the P-8 aircraft program. 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 contract with no option periods. Location of performance is Maryland, with a Dec. 1, 2021, performance completion date. Using customers are Navy and the Royal Australian Air Force. Type of appropriation is fiscal 2019 Navy working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. (Awarded Sept. 6, 2019)

Ultralife Corp., Newark, New York, has been awarded a maximum $7,900,000 firm-fixed-price, indefinite-quantity contract for non-rechargeable batteries. This was a competitive acquisition with two offers received. This is a three-year base contract with two one-year option periods. Location of performance is New York, with a Sept. 17, 2022, performance completion date. Using military services are Army and Marine Corps. Type of appropriation is fiscal 2019 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7LX-19-D-0206). (Awarded Sept. 18, 2019)

AIR FORCE

The Boeing Co., St. Louis, Missouri, has been awarded a $156,911,600 indefinite-delivery/indefinite-quantity bilateral contract modification (P00020) to previously awarded contract FA3002-13-D-0012 for the Foreign Military Sales (FMS) Royal Saudi Air Force (RSAF) F-15SA Original Equipment Manufacturer Training Program. This modification adds a two year ordering period to the multi-year basic contract. This modification involves 100% foreign military sales to Saudi Arabia. Work will be performed at King Khalid Air Base, Khamis Mushayt; King Faisal Air Base, Tabuk; and King Abdul Aziz Air Base, Dhahran, Kingdom of Saudi Arabia, and is expected to be completed by Dec. 31, 2021. Total cumulative face value of the contract is estimated and not to exceed $461,000,000. Foreign Military Sales funds in the amount of $156,911,600 are being obligated at the time of award. The 338th Specialized Contracting Squadron, Joint Base San Antonio-Randolph, Texas, is the contracting activity.

Dawson Enterprises LLC,* Honolulu, Hawaii, has been awarded an maximum value $50,000,000 indefinite-delivery/indefinite-quantity construction requirements contract vehicle for Simplified Acquisition of Base Engineering Requirements (SABER) at Eglin Air Force Base, Florida. The maximum dollar value for the five-year ordering period is $50,000,000. SABER is a program that expedites contract execution of base civil engineering (BCE) requirements by reducing design work and acquisition lead times. It is particularly well-suited for reducing the BCE work order backlogs and accomplishing construction, maintenance, and repair requirements on real property that require less than a 35% design effort. Work will be performed on Eglin Air Force Base, Florida, and is expected to be completed by Sept. 20, 2024. The first task order will be for $1,000 for a post award conference. This award was the result of an 8(a) Direct, Small Business Set Aside to a Native Hawaiian Corporation. Fiscal 2019 research, development, test and evaluation; and operation and maintenance funds will be utilized for work under this contract award and will be obligated appropriately under each task order. The Air Force Test Center, Eglin Air Force Base, Florida, is the contracting activity.

Honeywell International Inc., Tempe, Arizona, has been awarded a $17,064,898 firm-fixed-price supplemental agreement contract modification (P00010) to previously awarded FA8109-16-D-0016 for repair and overhaul requirement contract to support aircraft accessories and aircraft instruments to ensure serviceable assets are available to support the E-3,E-8, C-130, F-16, C-135, C-5, A-10, and B-52. The contract modification provides the pricing for the repair overhaul services for Option Year Three and Option Year Four which were not included in the basic contract. Work will be performed at Tempe Arizona; Phoenix, Arizona; Tucson Arizona; and Torrance, California, and is expected to be completed by Feb. 22, 2021. Total cumulative face value of the contract is $30,832,042. No funds are being obligated at time of award. The Air Force Sustainment Center, Tinker Air Force Base, Oklahoma, is the contracting activity.

Lockheed Martin Aeronautics Corp., Marietta, Georgia, has been awarded a $9,750,000 ceiling requirements contract for C-130J country specific technical orders (CSTOs) and other related maintenance publications. The contractor will provide multiple Foreign Military Sales (FMS) countries with CSTOs, standard maintenance publications, 515c inspections and other related maintenance publications for the legacy C-130 aircraft platform. Work will be performed at Marietta, Georgia; and at various FMS country locations and is expected to be completed by Sept. 18, 2024. This award is the result of a sole source acquisition and is 100% foreign military sales. Foreign Military Sales funds will be used and no funds are being obligated at the time of award. The Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8553-19-D-0004).

Long Wave Inc., Oklahoma City, Oklahoma, has been awarded an $8,222,269.52 modification (P00007) to firm-fixed-price, indefinite-delivery/indefinite-quantity contract FA8102-16-D-0006 for services and supplies in support of High Frequency Global Communications Systems Antenna Support Program. The contractor will provide Antenna Support in support of Air Force, Navy, and Coast Guard requirements. Work will be performed at Oklahoma City, Oklahoma, in support of this Sept. 20, 2019, through Sept. 19, 2020 ordering period. This option exercise is the result of a competitive acquisition. With award of this option the total estimated contract value is $39,703,959. Air Force Life Cycle Management Center, Tinker Air Force Base, Oklahoma, is the contracting activity.

ARMY

Colt's Manufacturing Co. LLC, West Hartford, Connecticut, was awarded a $41,924,594 firm-fixed-price Foreign Military Sales (Afghanistan, Bahrain, Djibouti, Federated States of Micronesia, Hungary, Jordan, Kuwait, Lebanon, Macedonia, Marshall Islands, Palau, St. Vincent and Grenadines, and Tunisia) contract for production for the M4 and M4A1 carbines. One bid was solicited with one bid received. Work locations and funding will be determined with each order, with an estimated completion date of Sept. 18, 2024. U.S. Army Contracting Command, New Jersey, is the contracting activity (W15QKN-19-D-0116).

Manson Construction Co., Seattle, Washington, was awarded a $31,907,280 firm-fixed-price contract for concrete sill remover. Bids were solicited via the internet with five received. Work will be performed in Jacksonville, Florida, with an estimated completion date of Sept. 30, 2020. Fiscal 2019 military construction funds in the amount of $31,907,280 were obligated at the time of the award. U.S. Army Corps of Engineers, Jacksonville, Florida, is the contracting activity (W912EP-19-C-0030).

Navistar Defense LLC, Lisle, Illinois, was awarded a $19,847,322 firm-fixed-price Foreign Military Sales (Iraq) contract for cargo trucks (6x6 General Transport Trucks, 6x6 Ton Recovery Wrecker and GTT spares). Bids were solicited via the internet with one received. Work will be performed in Lisle, Illinois, with an estimated completion date of May 15, 2020. Fiscal 2019 operations and maintenance Army funds in the amount of $19,847,322 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-19-F-0622).

T & T Construction Enterprises LLC,* Leitchfield, Kentucky, was awarded a $17,775,595 firm-fixed-price contract for construction services necessary to complete the repair and replacement of pavement. Bids were solicited via the internet with three received. Work will be performed in Grissom Air Reserve Base, Indiana, with an estimated completion date of Aug. 19, 2021. Fiscal 2019 operation and maintenance funds in the amount of $17,775,595 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-19-C-0037).

General Dynamics Land Systems Inc., Sterling Heights, Michigan, was awarded a $13,751,564 modification (P00072) to contract W56HZV-13-C-0319 for labor and vendor costs to furnish and install new horizontal boring mill machines. Work will be performed in Lima, Ohio, with an estimated completion date of June 13, 2023. Fiscal 2019 procurement of weapons and tracked combat vehicles, Army funds in the amount of $13,751,564 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity.

C.J. Mahan Construction Co. LLC, Columbus, Ohio, was awarded a $10,347,000 firm-fixed-price contract for Olmsted Lock and Dam operations maintenance support, fleet support and dive deflector box lifting and setting for the replacement of dam wickets. Bids were solicited via the internet with two received. Work will be performed in Olmsted, Illinois, with an estimated completion date of Sept. 30, 2021. Fiscal 2019 operations and maintenance, civil funds in the amount of $3,460,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-19-C-0034).

Two Six Labs LLC,* Arlington, Virginia, was awarded a $7,897,997 cost-plus-fixed-fee contract to build a system that can deal with unstructured, uncurated data, event extraction, bias detection, multi-lingual translation and build human-computer interfaces. Bids were solicited via the internet with one received. Work will be performed in Arlington, Virginia, with an estimated completion date of Sept. 30, 2022. Fiscal 2019 research, development, test and evaluation funds in the amount of $1,500,000 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911NF-19-C-0080).

American Ordnance, Middletown, Iowa, was awarded a $7,236,526 cost-plus-fixed-fee contract for facility disposal and demolition. Bids were solicited via the internet with one received. Work will be performed in Middletown, Iowa, with an estimated completion date of March 31, 2021. Fiscal 2019 procurement of ammunition, Army funds in the amount of $7,236,526 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-19-F-0610).

*Small Business

https://www.defense.gov/Newsroom/Contracts/Contract/Article/1966024/source/GovDelivery/

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    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

  • Opinion: Defense Budget’s Resilience Rests On Shaky Foundation

    February 21, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Opinion: Defense Budget’s Resilience Rests On Shaky Foundation

    Byron Callan Some of the main talking points on the fiscal 2021 defense budget request and the plan that accompanies it through 2025 are that it aligns resources with the National Defense Strategy and that this year's budget theme is about all-domain operations. The Pentagon called out priorities to sustain readiness and prepare for future challenges with investment in hypersonics, autonomous systems and artificial intelligence. Given a flat top line, the Defense Department had to make tough choices by making program cuts that have been well-documented and are well-covered by this publication. The outlines of structural changes in how the Pentagon is preparing for the future are indeed visible in the budget request and plan, but it is unrealistic to expect this budget to have completely framed out all that will be done. Increases in research, development, test and evaluation (RDT&E) spending both in absolute terms and compared to last year's plan for 2021-24 underscore shifts that are underway. It may take at least 2-3 more years to see how some of these RDT&E efforts translate into new programs and will inform how the U.S. will fight in future conflicts. Much as defense contractor management, analysts and planners will focus on the details in the defense budget, it is important also to factor in some of the assumptions that underpin the budget—the foundation upon which it rests. Here there are questions worth considering. The first is the real GDP forecast for 2021-29. The Office of Management and Budget (OMB) forecast depends on stable 3% annual real growth every year, which is well above consensus estimates. The U.S. is now in its longest economic expansion ever. Can this be extended into 2021 or beyond? Possibly. Has the U.S. somehow eliminated the risk of recession from a rapid increase in interest rates, another energy shock, a pandemic or a severe economic crisis in other parts of the world? Very likely not. Another questionable factor is the new budget and plan's interest-rate assumptions, as there was a big change from prior projections. The OMB and Congressional Budget Office (CBO) do not disclose how they expect the composition of federal debt by debt maturity to change over forecast periods. They usually provide projections only on three-month Treasury bill interest rates and on the 10-year Treasury note. The U.S. Treasury shows that as of Jan. 31, of the $17.2 trillion in federal debt held by the public, 14% was in Treasury bills with an average interest rate of 1.7%, and 58% was in notes with maturities of 2-10 years at an average rate of 2.1%. Net interest outlays are a mix of the interest the federal government pays to public holders of that debt and the interest it pays to itself on debt held in federal trust funds. One way to think about the debt burden and the interest expense associated with it is to take the net interest outlay projections and divide them by the total debt the OMB or CBO estimates. One of the changes the OMB made in its budget projections was to lower interest rate estimates. In recent years, these projections were too high compared to prevailing market levels, as the OMB and CBO both projected rates would return to “normal” levels. In the OMB's mid-session review from this past summer, the implied interest rate (net interest outlays divided by total debt) was 2.3% in 2019 and rose to 3.0% by 2022 and 3.3% by 2025. In the latest budget and plan, the implied rate is flat—at 2.1% in 2020, creeping up to 2.3% by 2025. This is another questionable factor that could weigh on the foundation of the defense spending plans. If rates do move to higher levels, then outlays will compete with other forms of federal spending. If rates fall further than projected, it may be due to a far weaker economy, which in turn weighs on federal deficits. A final questionable factor is the deficit projections themselves. The Trump administration again plans reductions in non-defense discretionary spending, which Congress has not supported in the last three budget requests. The share of non-defense discretionary outlays as a percent of total outlays drops to 12% in 2024 from 15% in 2019. For defense contractor management, planners, analysts and investors, foundations on which the budget plans are based imply that the structural and programmatic changes in the 2021 budget could be accelerated if deficits and interest rates are higher than the plan presumes. Like a high-rise building built to code in an earthquake zone, the Pentagon's structural and spending changes may make defense better able to withstand future macroeconomic tremors and shifts. https://aviationweek.com/defense-space/opinion-defense-budgets-resilience-rests-shaky-foundation

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