August 7, 2023 | International, Security
Belarus begins military drills near border with Poland and Lithuania
Both Poland and Lithuania have increased border security since thousands of Wagner fighters arrived in Russian-allied Belarus.
April 6, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
Daily Memo: Emergency Funding For Suppliers, Aftermarket Providers
Sean Broderick
The Coronavirus Aid, Relief, and Economic Security (CARES) Act sets up several new programs and adjusts some existing ones—each aimed at pumping much-needed cash into specific sized organizations or industry sectors.
Large portions of the U.S. commercial aviation industry got specific carve-outs in the $2 trillion economic relief package enacted March 27. While these loans and grants will help air carriers and other key industry players offset some financial strife caused by the COVID-19 outbreak, most suppliers will be looking elsewhere for money.
Thankfully, CARES gives even the smallest companies options.
Topping the list is the Paycheck Protection Program (PPP), a $349 billion pot of money designed to enable the U.S. Small Business Administration (SBA) to provide “expeditious” relief to eligible businesses, an interim final rule published late April 2 said. PPP provides SBA-guaranteed loans equal to up to 2.5 times monthly payroll costs, with a $10 million cap, that businesses can use to keep the lights on for two months. Eligible expenses include payroll, health care benefits, rent and utility payments, as well as some interest expenses. The loans come with a 1% interest rate, maximum two-year terms, and require no collateral or personal guarantees. But they will be forgiven if 75% or more of the funds are used to cover payroll.
Among the PPP's wrinkles: only the first $100,000 in an employee's salary can be counted when calculating payroll expenses. Contractors are eligible to apply for their own relief, so their costs can't be counted at all. Also ineligible for counting in the payroll expenses: salaries of employees that live outside the U.S.
Businesses can only apply for one PPP loan, so the SBA advises applying for the maximum eligible amount.
Determining eligibility is straightforward: a business must find its North American Industry Classification System (NAICS) code, check the maximum employee size for its business category, and compare it to its staff size. While the general small-business benchmark is 500 or fewer employees, aerospace has many exceptions. The threshold for aircraft engine and engine parts manufacturing/maintenance (NAICS code 336412) is 1,500 employees. For aeronautical instruments manufacturing (334511), it's 1,250. If your business falls into multiple codes, the one that generates the most work determines your NAICS code. SBA has an online tool that walks through the process at www.sba.gov/size-standards.
The PPP application window opened on April 3. The program's sheer size—SBA's cornerstone 7(a) loan program issued about $20 billion in loans in all of 2019—and its first-come, first-served basis triggered a massive, front-loaded surge of applications. The interim final rule contained key guidance that banks needed to service the program, which meant not all lenders were ready to start processing applications right away. But the situation was improving hourly throughout the day April 3 as more lenders came onboard.
Another SBA program that CARES leans on is the Economic Injury Disaster Loan (EIDL). Capped at $2 million with a 3.75% interest rate, EIDLs can be used for a wider variety of expenses than the PPP. Unlike the PPP, however, they are not eligible for forgiveness.
CARES also gives the U.S. Treasury Department the authority to make special loan allowances for medium-sized businesses, generally those that are too large for an SBA program and have up to 10,000 employees. Among the caveats: maintaining or restoring 90% of its equivalent workforce as of Feb. 1, 2020 within four months of the official U.S. declaration that the COVID-19 public health emergency is over. Further guidance from Treasury, including basics such as how to apply, are in the works.
Some suppliers are eligible to apply for shares of the aviation-specific funds set aside in CARES. FAA-certificated repair stations are mentioned as being eligible for some of the $29 billion in CARES loans, specifically from the $25 billion pot allocated for passenger airlines. But the law says they should exhaust other available CARES funding options first.
There is another pot of $17 billion in loans set aside for companies critical to national security. Neither the law nor Treasury defines the term, however, so eligibility remains unclear. If Treasury looks to the U.S. Department of Homeland Security's Critical Infrastructure guidance, aircraft and engine supply-chains would qualify, as would repair stations.
Payroll grants for suppliers are murkier. CARES language has a $3 billion set-aside for contractors that both work for airlines and are on-airport. Many maintenance providers would seem to fit here, though Treasury will have the final say.
Industry trade associations and legal experts working the issue are learning more by the hour. Their one common piece of advice for businesses: consult with an attorney or tax expert, determine what your business qualifies for, and weigh your options. Many businesses will qualify for multiple programs that cannot be mixed, creating an either/or choice that comes down to the various strings attached to each.
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CISA Adds Critical Flaw in BeyondTrust Software to Exploited Vulnerabilities List
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May 5, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
Contract Awards by US Department of Defense - May 04, 2020
DEFENSE LOGISTICS AGENCY Point Blank Enterprises Inc., Pompano Beach, Florida, has been awarded a maximum $81,265,600 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for body armor. This was a competitive acquisition with five offers received. This is an 18-month base contract with two one-year option periods. Location of performance is Florida, with a Nov. 30, 2021, performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and Coast Guard. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1254). Arjo Inc., Addison, Illinois, has been awarded a maximum $47,500,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for medical equipment and accessories for the Defense Logistics Agency electronic catalog. This was a competitive acquisition with 115 responses received. This is a five-year contract with no option periods. Location of performance is Illinois, with a May 3, 2025, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-20-D-0038). NAVY General Dynamics Electric Boat Corp. (GDEB), Groton, Connecticut, is awarded $60,594,296 for a cost-plus-fixed-fee contract to provide U.S. Trident II Strategic Weapon System (SWS) ship alterations and United Kingdom SWS ship alterations for Strategic Systems Program shipboard integration installations. Work will be performed in Bremerton, Washington (29%); Groton, Connecticut (24%); Kings Bay, Georgia (24%); Bangor, Washington (9%); Cape Canaveral, Florida (7%); Norfolk, Virginia (3%); Washington, D.C. (2%); Faslane, Scotland (1%); and Plymouth, England (1%). Work is expected to be complete by April 2024. The maximum dollar value, including the base period and two option years, is $60,594,296. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $8,511,473; other procurement (Navy) contract funds in the amount of $8,534,755; fiscal 2020 research, development, test and evaluation (Navy) contract funds in the amount of $3,171,978; and United Kingdom funds in the amount of $2,098,018 are being obligated at time of award. Funds in the amount of $8,511,473 will expire at the end of the current fiscal year. This contract was a sole-source acquisition in accordance with 10 U.S. Code 2304(c)(1) and (4). Strategic Systems Programs, Washington, D.C., is the contracting activity (N-00030-20-C-0028). Virginia Pilot Association, Virginia Beach, Virginia, is awarded an $8,175,544 firm-fixed-price, indefinite-delivery/indefinite-quantity contract to provide support services to assist with the navigation of ships for Commander, Navy Region Mid-Atlantic Port Operations Division. All work will be performed in Norfolk, Virginia, and is expected to be complete by May 2025. This contract will include a 60-month base ordering period with an additional six-month ordering period option pursuant of Federal Acquisition Regulation 52.217-8; an option to extend services, which if exercised, will bring the total value to $9,058,663. The base ordering period is expected to be completed by May 2025; if the option is exercised, the ordering period will be completed by December 2025. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $50,000 will be obligated to fund the contract's minimum amount and funds will expire at the end of the current fiscal year. One source was solicited for this non-competitive, sole-source requirement in accordance with Federal Acquisition Regulation 6.302-1, and one offer was received. Naval Supply Systems Command Fleet Logistics Center Norfolk, Contracting Department Norfolk, Virginia, is the contracting activity. ARMY KVG LLC, Gettysburg, Pennsylvania (W564KV-20-D-2002); Crowley Government Services Inc., Jacksonville, Florida (W564KV-20-D-2004); Agility International Inc., Alexandria, Virginia (W564KV-20-D-2003); Maersk Line Ltd, Norfolk, Virginia (W564KV-20-D-2005); Aecom Management Services Inc., Germantown, Maryland (W564KV-20-D-2006); and American Roll-on Roll-off Carrier Group, Parsippany, New Jersey (W564KV-20-D-2007), will compete for each order of the $49,010,000 contract for the transportation of equipment, cargo and passengers within the European Command area of operations. Bids were solicited via the internet with 16 received. Work locations and funding will be determined with each order, with an estimated completion date of May 9, 2023. The 409th Contracting Support Brigade, Kaiserslautern, Germany, is the contracting activity. The Lighthouse for the Blind, St. Louis, Missouri (W81XWH-19-D-0008); Atlantic Diving Supply Inc.,* Virginia Beach, Virginia (W81XWH-19-D-0007); American Purchasing Services LLC,* Miramar, Florida (W81XWH-19-D-0006); and TQM LLC, St. Charles, Missouri (W81XWH-19-D-0009), will compete for each order of the $45,000,000 contract for sets, kits and outfits to supply complete medical, surgical, pharmaceutical, dental, laboratory and veterinary equipment and material sets. Bids were solicited via the internet with four received. Work locations and funding will be determined with each order, with an estimated completion date of May 4, 2024. U.S. Army Medical Research Acquisition Activity, Fort Detrick, Maryland, is the contracting activity. Raytheon Co., Dulles, Virginia, was awarded a $27,472,296 hybrid (cost-no-fee, firm-fixed-price) contract to provide technical expertise, system operators, maintenance and life-cycle support for the sustainment, operations and support management of numerous training aids, devices, simulators and simulations. Bids were solicited via the internet with three received. Work will be performed in Kuwait, with an estimated completion date of Dec. 31, 2023. Fiscal 2020 defense overseas contingency transfer funds in the amount of $5,000,000 were obligated at the time of the award. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-20-C-0031). MISSILE DEFENSE AGENCY Davidson Technologies,* Huntsville, Alabama, is being awarded a modification in the amount of $20,696,405 to previously awarded indefinite-delivery/indefinite-quantity (ID/IQ) contract HQ0147-19-D-0004. The contract value is increased from $2,437,491 to $23,133,896. Under this contract the contractor will continue to develop a cyber-secure information technology infrastructure that allows users to access data via a virtual desktop infrastructure. The work will be performed in Huntsville, Alabama. The ordering period of the ID/IQ is May 23, 2019, to May 22, 2024. A second task order award in the amount of $12,200,000 is being issued at this time. Fiscal 2020 research and development funds in the amount of $12,200,000 are being obligated on the task order award. The original award was made under Special Topic Broad Agency Announcement (BAA) number HQ0147-17-S-0002 that was posted to the Federal Business Opportunities website to solicit white papers related to advanced research technology and development in accordance with Federal Acquisition Regulation 6.102(d)(2)(i) to meet full and open competition requirements. The government received 26 white papers in response to the BAA and selected seven from which proposals were requested. This original award results from one of seven proposals received. The Missile Defense Agency, Redstone Arsenal, Alabama, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2175622/source/GovDelivery/