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January 16, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Does the Pentagon need a chief management officer?

By: Jerry McGinn

Ms. Lisa Hershman, an accomplished former CEO who has been serving in the Department of Defense for over two years, received Senate confirmation by unanimous consent to become the DoD chief management officer shortly before Christmas. At the same time, however, the 2020 National Defense Authorization Act required two studies from the DoD that openly posit eliminating the CMO function altogether.

What gives? The mixed signals coming out of these discordant events underscore the fact that the theory behind the current CMO function (and similar efforts over the past two decades) does not match the reality of the business structure of the DoD. The solution that will ultimately work best for the DoD is one that truly takes a business-based approach to DoD business operations.

The CMO function is the latest in a long-running series of efforts since the early 2000s to reform the business of defense. The essential idea has been to bring the best commercial business practices into DoD business operations through organizational and legislative changes.

While the rationale for these respective initiatives is unassailable, they have struggled in execution. The CMO and its predecessor organizations, for example, have focused on the acquisition or certification of DoD business systems. These efforts, however, have largely devolved into bureaucratic battles over resources and authorities, pitting the business-focused organization against the formidable military departments and the “fourth estate.”

Whatever the outcome, the business-focused organization ends up being seen as weak and ineffective.

Why is that? Having worked for years in and around these respective efforts in both government and industry roles, I have come to the conclusion that these well-meaning initiatives are just the wrong type of solution. This is largely because their respective organizations, often despite strong leadership and empowered by various degrees of legislative authority, have not had the bureaucratic throw-weight to succeed in Pentagon battles with the services and the fourth estate.

The solution to this challenge, however, is not to further tinker with the CMO's authority or to create a larger or different CMO organization. Part of the solution is to recognize that while the DoD is not a business, it is in many ways a businesslike organization. There are no profit and loss, or P&L, centers in the DoD, but the military departments frankly function in much the same way as a P&L line of business. The services are directly responsible for training and equipping their soldiers, sailors and airmen just as P&L leaders are responsible for delivering products and solutions on time and profitably.

Likewise, fourth estate entities such as the defense agencies and the Office of the Secretary of Defense have direct responsibility over their respective functions. Harnessing the power and authority of these organizations through the training and enabling of good business practices is a much more natural fit for the DoD.

Devolving responsibility in and of itself is not the answer, however. The other part of the solution is accountability. Commercial businesses do not have a CMO function. Instead, well-run businesses are led by strong executives who are responsible and accountable for delivering results to their employees and shareholders. Those that succeed are rewarded, while those that fail are replaced.

The same goes for the DoD.

DoD leadership should focus on establishing business-reform objectives for each major DoD organization, and then holding leaders of these respective organizations accountable to the achievement of measurable business goals. This should be driven by the secretary and the deputy, and enabled by a much smaller CMO function. Secretary Mark Esper appears to be headed in that direction in his recent memo on 2020 DoD reform efforts, which focuses the CMO's efforts on the fourth estate and makes the services directly responsible “to establish and execute aggressive reform plans.” That is the right approach.

In short, the DoD does not need a management organization to oversee the business of defense; it needs to enable its leaders to utilize business best practices, and then hold these leaders accountable for results.

Jerry McGinn is the executive director of the Center for Government Contracting at George Mason University. He previously served as the senior career official in the Office of Manufacturing and Industrial Base Policy at the U.S. Defense Department.

https://www.defensenews.com/opinion/commentary/2020/01/15/does-the-pentagon-need-a-chief-management-officer

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  • Contract Awards by US Department of Defense - August 28, 2020

    August 31, 2020 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

    Contract Awards by US Department of Defense - August 28, 2020

    MISSILE DEFENSE AGENCY Lockheed Martin Corp., Sunnyvale, California, is being awarded a $911,765,000 modification (P00049) for existing sole source, indefinite-delivery/indefinite-quantity contract HQ0147-12-D-0001 for Terminal High Altitude Area Defense element development and support services. This modification brings the total maximum ceiling value of this contract from $2,335,000,000 to $3,246,765,000. This modification provides for the extension of the period of performance for additional incremental development, support to flight and ground test programs and responsive support to warfighter requirements to sustain the Ballistic Missile Defense System throughout the acquisition life cycle. Expected completion dates will be established under subsequent task order awards. The work will be performed at Sunnyvale, California; and Huntsville, Alabama. No funding is being obligated at the time of award. The Missile Defense Agency, Huntsville, Alabama, is the contracting activity. DEFENSE LOGISTICS AGENCY Abbott Rapid DX North America LLC, Orlando, Florida, has been awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the production and delivery of BinaxNOW rapid point-of-care antigen tests for COVID-19. The initial order is valued at $760,000,000 for 150 million tests and distribution costs. This was a sole-source acquisition to meet an urgent and compelling national need. An Emergency Use Authorization has been approved and signed by the Food and Drug Administration for this contract award. This is a four-month contract with no option periods. Locations of performance are Florida and Maine, with a Dec. 31, 2020, ordering period end date. Using customer is the Department of Health and Human Services. The maximum dollar value on the contract is $1,500,000,000. Type of appropriation is fiscal 2020 CARES Act funding. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DE-20-D-0027). (Awarded Aug. 27, 2020) Petro Star, Inc.,* Anchorage, Alaska (SPE605-20-D-4008, $62,088,432); Delta Western LLC, Seattle, Washington (SPE605-20-D-4002, $32,629,727); Crowley Government Services, Jacksonville, Florida (SPE605-20-D-4005, $26,468,885); and Petro 49 Inc.,* doing business as Petro Marine Services, Seward, Alaska (SPE605-20-D-4009, $15,852,473), have each been awarded a fixed-price with economic-price-adjustment contract under solicitation SPE0600-20-R-0222 for various types of fuel. These were competitive acquisitions with 18 responses received. They are 60-month contracts with a six-month option period. Locations of performance are Alaska, Florida and Washington, with a Sept. 30, 2024, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps, Coast Guard and federal civilian agencies. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia. Breton Industries Inc.,* Amsterdam, New York, has been awarded a maximum $17,810,477 firm-fixed-price contract for vehicular door handles, soft top parts kits, vehicular fitted covers and vehicular curtain assemblies. This was a competitive acquisition with four offers received. This is a three-year base contract with two one-year option periods. Location of performance is New York, with an Aug. 27, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7LX-20-D-0166). Immix Technology Inc., McLean, Virginia, has been awarded a maximum $17,637,924 firm-fixed-price delivery order (SP4701-20-F-0161) against five-year basic ordering agreement NNG-15-S-C39B with one five-year option period for IBM software maintenance support renewal. This was a competitive acquisition with four responses received. This is a one-year base contract with two one-year option periods. Location of performance is Virginia, with an Aug. 31, 2021, performance completion date. Using customer is the Defense Logistics Agency. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Contracting Services Office, Philadelphia, Pennsylvania. AMG Engineering & Machining Inc., Indianapolis, Indiana (SPE4A7-20-D-0363, $17,236,056); and Janel's Industries Inc., Dowagiac, Michigan (SPE4A7-20-D-0362, $13,155,156), have each been awarded a maximum firm-fixed-price, indefinite-quantity contract under solicitation SPE4A7-20-R-0032 for aircraft structural fittings. This was a competitive acquisition using justification 15 U.S. Code 657f, as stated in Federal Acquisition Regulation 6.206. This is a five-year contract with no option periods. Locations of performance are Michigan, Florida and Indiana, with an Aug. 28, 2025, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Richmond, Virginia. AIR FORCE National Strategic Research Institute – University of Nebraska, Lincoln, Nebraska, has been awarded a maximum $92,000,000 single-award, indefinite-delivery/indefinite-quantity contract for research and development services supporting U.S. Strategic Command (USSTRATCOM) and other government agencies. The contract is specifically for obtaining Department of Defense essential engineering, research and development capabilities and mission-related research including test, evaluation, and systems analysis of related topics for USSTRATCOM in the defined core competencies of nuclear detection and forensics, detection of chemical and biological weapons, active and passive defense against weapons of mass destruction and consequence management. Work will primarily be performed at the University of Nebraska-Lincoln, Lincoln, Nebraska; and University of Nebraska Medical Center, Omaha, Nebraska, and is expected to be completed Feb. 28, 2026. This award is a result of a sole-source acquisition. Fiscal 2020 operations and maintenance funds in the amount of $1,000 are being obligated at the time of award. The 55th Contracting Squadron, Offutt Air Force Base, Nebraska, is the contracting activity (FA4600-20-D-0003). PLEXSYS Interface Products, Camas, Washington, has been awarded a $66,771,502 firm-fixed-price, time and materials contract to the Airborne Warning and Control System (AWACS) Mission Crew Training Set (MCTS) effort. This contract will provide services to support the AWACS Block 40/45 system by providing operations and maintenance to eight MCTS systems. This contract will ensure that these MCTS systems are ready for training at the beginning of each training day, ensuring it remains operational throughout training events and then securing it at the conclusion of the training day. Work will be performed at Tinker Air Force Base, Oklahoma; Kadena Air Base, Japan; Nellis AFB, Nevada; and Joint Base Elmendorf, Alaska, and is expected to be completed by July 2024. This award is the result of a sole-source acquisition. Fiscal 2020 centralized asset management aircraft procurement funds in the amount of $12,142,258 are being obligated at the time of award. Air Force Life Cycle Management Center, Hanscom AFB, Massachusetts, is the contracting activity (FA8730-20-C-0009). M1 Support Services, Denton, Texas, has been awarded a $25,649,894 modification (P00050) to contract FA4890-16-C-0012 for the T‐38 aircraft maintenance program. The modification will provide intermediate and organizational maintenance of T‐38 aircraft for Air Combat Command, Air Force Materiel Command and Air Force Global Strike Command. Work will be performed at Beale Air Force Base, California; Holloman AFB, New Mexico; Joint Base Langley-Eustis, Virginia; Tyndall AFB, Florida; and Whiteman AFB, Missouri, and is expected to be completed Sept. 30, 2021. Fiscal 2021 operations and maintenance funds will be used, but no funds will be obligated at time of award. Acquisition Management and Integration Center, Joint Base Langley-Eustis AFB, Virginia, is the contracting activity. Frontier Technology Inc., Beavercreek, Ohio, has been awarded an $18,838,565 cost-plus-fixed-fee modification (P00016) to life cycle decision support contract FA8806-19-C-0004 for additional support and analysis. The contract modification provides for the support and analysis to aid in the rapid prototyping and delivery of Enterprise Ground Services to future and existing U.S. Space Force missions. Work will be performed in Colorado Springs, Colorado; and Los Angeles, California, and work is expected to be completed by Sept. 4, 2021. Fiscal 2020 research, development, test and evaluation funds in the amount of $6,700,000 are being obligated at the time of award. Total cumulative face value of the contract is $85,525,491. Space and Missile Systems Center, Los Angeles Air Force Base, El Segundo, California, is the contracting activity. Range Generation Next LLC, Sterling, Virginia, has been awarded a $17,620,089 cost-plus-fixed-fee modification (P000313) to contract FA8806-15-C-0001 for cyber hardened infrastructure support Phases Three and Four. This modification supports an increase in launch and test range requirements. Work will be performed at Eastern Range, Patrick Air Force Base, Florida; and Western Range, Vandenberg AFB, California, and is expected to be completed Feb. 24, 2023. Fiscal 2020 operations and maintenance funds in the full amount are being obligated at the time of award. Space and Missile Systems Center, Peterson AFB, Colorado, is the contracting activity (FA8806-15-C-0001). Credence Management Solutions LLC, Vienna, Virginia, has been awarded an $8,661,142, bilateral second option for task order FA3002-18-F-0162 to continue providing flight training operations support to Air Education and Training Command fighter aircrew at Joint Base San Antonio (JBSA) Randolph and Lackland, Texas; Columbus Air Force Base, Mississippi; Laughlin AFB, Texas; Vance AFB, Oklahoma; Tucson Air National Guard (ANG) Base, Arizona; Little Rock ANG Base, Arkansas; Altus AFB, Oklahoma; Pensacola Naval Air Station, Florida; Fort Rucker, Alabama; and the U.S. Air Force Academy, Colorado, and is expected to be completed August 2021. This task order incorporates the addition of two schedulers at JBSA–Randolph, and the Service Contract Labor Standards, Department of Labor Wage Determinations and the Collective Bargaining Unit for Altus AFB. Fiscal 2020 operations and maintenance funds in the full amount are being obligated at the time of award. The Air Force Installation Contracting Center, JBSA-Randolph, Texas, is the contracting activity. ARMY EFW Inc., Fort Worth, Texas, was awarded a $55,365,964 modification (P00010) to contract W15QKN-20-F-0331 to increase the contract ceiling amount and extend the contract period of performance to procure hardware in support of the Mortar Fire Control System. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 28, 2022. U.S. Army Contracting Command, Newark, New Jersey, is the contracting activity. (Awarded April 1, 2020) Legacy Joint Venture Group LLC,* Warner Robins, Georgia, was awarded a $49,000,000 firm-fixed-price contract to provide rapid response with new construction, renovation, upgrades, improvement, maintenance or repair of government facilities. Bids were solicited via the internet with nine received. Work locations and funding will be determined with each order, with an estimated completion date of June 30, 2025. U.S. Army Corps of Engineers, Savannah, Georgia, is the contracting activity (W912HN-20-D-4007). Advanced Systems Technology Inc.,* Lawton, Oklahoma, was awarded a $24,331,428 firm-fixed-price contract for to replace the existing tactical communication subsystems towers and antenna system equipment to properly operate, display and protect the Joint Readiness Training Center instrumented systems. Bids were solicited via the internet with two received. Work will be performed in Fort Polk, Louisiana, and Lawton, Oklahoma, with an estimated completion date of Aug. 27, 2022. Fiscal 2020 operations and maintenance (Army) funds; and 2019 and 2020 other procurement (Army) funds in the amount of $24,331,428 were obligated at the time of the award. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-20-C-0018). Henry M. Jackson Foundation, Bethesda, Maryland, was awarded an $18,808,103 cost-plus-fixed-fee contract for medical research to implement a multifaceted artificial intelligence initiative at the Biotechnology High-Performance Computing Software Applications Institute to support scientific research in multiple areas of military medicine. Bids were solicited via the internet with one received. Work will be performed in Bethesda, Maryland, with an estimated completion date of Aug. 16, 2023. Fiscal 2020 Defense Health Program and research, development, test and evaluation (Army) funds in the amount of $4,673,419 were obligated at the time of the award. U.S. Army Medical Research Acquisition Activity, Fort Detrick, Maryland, is the contracting activity (W81XWH-20-C-0031). Alstom Renewable US LLC, Greenwood Village, Colorado, was awarded a $15,943,367 firm-fixed-price contract to perform all work required to rewind two hydroelectric generating units at Hartwell Powerhouse. Bids were solicited via the internet with four received. Work will be performed in Hartwell, Georgia, with an estimated completion date of May 31, 2022. Fiscal 2020 hydropower customer funded funds in the amount of $15,943,367 were obligated at the time of the award. U.S. Army Corps of Engineers, Mobile, Alabama, is the contracting activity (W91278-20-C-0025). McMillen LLC, Boise, Idaho, was awarded a $12,231,000 firm-fixed-price contract for equipment, structures and all labor, plant, equipment and materials for the rehabilitation of the two low-level outlets of the Coolidge Dam. Bids were solicited via the internet with five received. Work will be performed at the Coolidge Dam, Arizona, with an estimated completion date of Oct. 22, 2022. Fiscal 2020 Bureau of Indian Affairs construction funds in the amount of $12,231,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Albuquerque, New Mexico, is the contracting activity (W912PP-20-C-0018). EA Engineering, Science and Technology Inc.,* Hunt Valley, Maryland, was awarded an $8,025,292 firm-fixed-price contract to address groundwater contamination resulting from historical releases at Kirtland Air Force Base. Bids were solicited via the internet with two received. Work will be performed at Kirtland Air Force Base, New Mexico, with an estimated completion date of Aug. 27, 2025. Fiscal 2020 environmental restoration, defense funds in the amount of $8,025,292 were obligated at the time of the award. U.S. Army Corps of Engineers, Albuquerque, New Mexico, is the contracting activity (W912PP-20-C-0020). NAVY La Jolla Logic, San Diego, California (M68909-20-D-7601); Pueo Business Solutions LLC, Fredericksburg, Virginia (M68909-20-D-7602); Axcend, Inc., Fairfax, Virginia (M68909-20-D-7604); Lumbee Tribe Enterprises LLC, Pembroke, North Carolina (M68909-20-D-7605); and Trillion Technology Solutions, Inc., Reston, Virginia (M68909-20-D-7606), are being awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity contract for network, engineering, testing and cybersecurity support services with an estimated ceiling value of $46,000,000. Work will be performed in Camp Pendleton, California, and is expected to be complete by May 2025. Fiscal 2020 operations and maintenance (Marine Corps) funds in the amount of $1,500 will be obligated on the first task order immediately following contract award and funds will expire the end of the current fiscal year. This contract was competitively procured via the beta.SAM.gov website, with 17 offers received. The Marine Corps Systems Command, Marine Corps Tactical Systems Support Activity, Camp Pendleton, California, is the contracting activity. (Awarded Aug. 27, 2020) Coastal Marine Services Inc., San Diego, California (N50054-20-D-0007); and Thermcor Inc., Norfolk, Virginia (N50054-20-D-0008), are each being awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contracts to provide insulation and lagging removal and installation. Coastal Marine Services Inc. is awarded an $18,903,577 contract and Thermcor Inc. is awarded a $23,020,821 contract for a total amount of $41,924,398. Work will be performed in Norfolk, Virginia, and is expected to be completed by August 2021, and if all options are exercised, by August 2025. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $24,000 ($12,000 minimum guarantee per contract) will be obligated at time of award and will expire at the end of the current fiscal year. This multiple award contract was procured as a small business set-aside via the beta.Sam.gov website with two offers received. The Mid-Atlantic Regional Maintenance Center, Norfolk, Virginia, is the contracting activity. Mare Island Dry Dock, Vallejo, California, is awarded a $15,378,728, 50-calendar day, firm-fixed-price contract (N32205-20-C-4066) for the mid-term availability of the fleet replenishment oiler USNS Henry J. Kaiser (T-AO 187). The $15,378,728 consists of the amounts listed in the following areas: Category “A” work item cost, additional government requirement, other direct costs and the general and administrative costs. Work will include forward and port side superstructure preservation and steel repairs, ballast tank preservation forepeak, flight deck non-skid renewal, miscellaneous steel repairs, tank preservation 1S, 8C and 10C, main engine 12,000-hour overhaul, multiple cable transit repair, marine sanitation device tank replacement, number 4 ship service diesel generators resilient engine mount replacement and vent plenum preservation. The contract includes options which, if exercised, would bring the total value to $16,715,800. Work will be performed in Vallejo, California. Expected period of performance is Oct. 14, 2020, through Dec. 2, 2020. Fiscal 2021 working capital (Navy) funds, excluding options, in the amount of $15,378,728 will be obligated at time of the award. This contract was competitively procured, with proposals solicited via the beta.sam.gov website and two offers were received. The Military Sealift Command, Norfolk, Virginia, is the contracting activity (N32205-20-C-4066). Basic Commerce and Industries Inc.,* Moorestown, New Jersey, is awarded a $12,281,171 indefinite-delivery/indefinite-quantity, cost-reimbursement-type contract for research, development, production, integration, installation, software support and maintenance of Weather Radar Through-the-Sensor systems. This five-year contract includes no options. Work will be performed in Moorestown, New Jersey (95%); and San Diego, California (5%). The period of performance is from Aug. 28, 2020, through Aug. 27, 2025. Contract funds will not expire at the end of the current fiscal year. Funding will be obligated via task orders using research, development, test and evaluation (Navy); other procurement (Navy); and operations and maintenance (Navy) funds. This contract was awarded with circumstances permitting other than full and open competition pursuant to the authority of 10 U.S. Code 2304(c)(5) as implemented by Federal Acquisition Regulation 6.302-5. Naval Information Warfare Center Pacific, San Diego, California, is the contracting activity (N66001-20-D-3413). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2329454/

  • Contracts for October 13, 2021

    October 14, 2021 | International, Aerospace, Naval, Land, C4ISR, Security

    Contracts for October 13, 2021

    Today

  • Raytheon wins pair of Air Force and Navy IT contracts

    December 3, 2020 | International, Aerospace, Naval, C4ISR

    Raytheon wins pair of Air Force and Navy IT contracts

    Andrew Eversden WASHINGTON — Raytheon's intelligence and space business announced Wednesday it was awarded a five-year basic ordering agreement for software services by LevelUP, a U.S. Air Force software factory. The award to the defense giant comes after the company announced a $70 million contract for submarine communications sustainment with the Navy. A Raytheon spokesperson was unable to provide a contract value for the Air Force deal. According to Raytheon, the basic ordering agreement will be the “primary avenue” for the Air Force's Platform One system, which serves as the service's primary platform for software development. The deal also impacts the development of the Advanced Battle Management System, the Air Force's platform to enable the Joint All-Domain Command and Control concept. “To combat increasingly fast, capable and agile threats, we must be able to deliver services within hours, or even minutes,” said David Appel, vice president of defense and civil solutions for space and C2 systems with Raytheon Intelligence and Space. “This agreement provides an avenue for the Air Force to achieve that. We're now positioned to rapidly deliver agile cyber solutions to the Air Force and the Department of Defense.” The Air Force decided to create the LevelUP factory after its work developing U.S. Cyber Command's Unified Platform, the combatant command's first major weapons system. The Air Force wanted the factory to help other components with similar software projects. Submarine communications Meanwhile, below sea level, Raytheon was awarded a $70 million contract to provide sustainment services to Navy submarines, the defense giant announced Dec. 1. Under the five-year, indefinite delivery, indefinite quantity contract, Raytheon will provide test, inspection, evaluation and restoration services of Submarine High-Data Rate, or SubHDR, mast components. SubHDR connects submarines to the Defense Department's Global Broadcast Service, a network that allows for one-way communication of data and video files. The SubHDR systems relies on a special mast antenna that connects the subs to networks above the sea. The Global Broadcast Service relies on the Milstar satellite constellation and Defense Satellite Communication System. According to a Raytheon news release, SubHDR “vastly improves a submarine's mission capability and the quality of life for submariners by affording them high-data rate communications with the world outside of the sub.” “The SubHDR system was created to support protected high-data rate communications for submarines,” said Denis Donohue, vice president for communications and airspace modernization systems for Raytheon Intelligence and Space. “SubHDR mast is a protected, secure and survivable system to support all communications needs, from day-to-day messaging to ensuring the commander-in-chief can stay connected with his commanders.” Naval Undersea Warfare Center awarded the contract. https://www.c4isrnet.com/battlefield-tech/it-networks/2020/12/02/raytheon-wins-pair-of-air-force-and-navy-it-contracts/

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