German aviation company Lilium and Swiss firm to open new sites in France

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  May 27, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Will defense budgets remain ‘sticky’ after the COVID-19 pandemic?

  By: Eric Lofgren Congress' unprecedented fiscal response to COVID-19 has many in the defense community wondering whether belt tightening will hit the Pentagon. On May 19, the Congressional Progressive Caucus wrote a letter arguing for substantial defense budget cuts to support additional spending on the pandemic. Nonprofit progressive supporters have been asking to cut a much larger $350 billion each year from the Pentagon in their “Moral Budget” proposal. What the progressives perhaps do not fully appreciate is the “stickiness” of defense budgets. In economics, stickiness refers to rigidity in the movement of wages and prices despite broader economic shifts pushing for new equilibrium. The phenomenon is apparent in defense budgets as well. Most expectations are that the fiscal 2021 budget will remain over $700 billion. Consider an analogy: the 2008 financial crisis. Lehman Brothers collapsed just a couple weeks before fiscal year 2009 started, leaving that $666 billion defense budget largely beyond recall. The following years' budgets were $691 billion, $687 billion, $646 billion and then finally in FY13 a more precipitous 10 percent fall to $578 billion. It took four years for the Pentagon to really feel the squeeze of the financial downturn. The uninitiated may believe COVID-19 happened with enough of lead time to affect the FY21 budget. Congress received the president's budget in February 2020 and has until the start of October to make targeted cuts without encountering another continuing resolution. The defense budget, however, represents the culmination of a multiyear process balancing thousands of stakeholder interests. It reflects a vast amount of information processed at every level of the military enterprise. The Pentagon's work on the FY21 budget request started nearly two years ahead of time and includes a register of funding estimates out to FY25. Moreover, defense programs are devised and approved based on life-cycle cost and schedule estimates. Cuts to a thorough plan may flip the analysis of alternatives on its head, recommending pivots to new systems or architectures and upsetting contract performance. Not only are current budgets shaped by many years of planning, but they get detailed to an almost microscopic level. For example, the Army's FY21 research, development, test and evaluation request totaled $12.8 billion, less than 2 percent of the overall Pentagon request. Yet the appropriation identifies 267 program elements decomposing into a staggering 2,883 budget program activity codes averaging less than $10 million each. Congressional staff is too small to understand the implications of many cost, schedule and technical trade-offs. To gather information on impacts, the Pentagon is thrown into a frenzy of fire drills. More draconian measures, like the FY13 sequestration, leading to indiscriminate, across-the-board cuts can sidestep hard questions but comes at a significant cost to efficiency. Targeted cuts at a strategic level, such as to the nuclear recapitalization programs and other big-ticket items, can expect stiff resistance. First, there is real concern about great power competition and the damage that may be wrought by acting on short-term impulses. Second, targeted programs and their contractors will immediately report the estimated number of job losses by district. Before measures can get passed, a coalition of congressional members negatively impacted may oppose the cuts. Resistance is intensified considering the proximity to Election Day. Budget stickiness is built into the political process. The FY22 budget is perhaps the first Pentagon budget that can start inching downward. More than likely, severe cuts aren't in the offing until FY23 or FY24 at the very earliest. That gives time for policymakers to reflect on the scale of the rebalancing between defense and other priorities. In some important ways, congressional control of the Pentagon through many thousands of budget line items restricts its own flexibility. For example, continuing resolutions lock in program funding to the previous year's level until political disagreements can be resolved. The military cannot stick to its own plans, much less start new things. If budget lines were detailed at a higher level, such as by major organization or capability area, then the Pentagon could make more trade-offs while Congress debates. Similarly, if the Pentagon had more budget flexibility, then Congress could more easily cut top lines and allow Pentagon leaders to figure out how to maximize with the constraint during the year of execution. Congress could gain the option to defer the hard questions that can make cuts politically difficult. The Space Force recently released a proposal for consolidating budget line items into higher-level capability areas. It reflects the idea that portfolio-centric management is an efficient method of handling rapid changes in technologies, requirements or financial guidance resulting from economic shocks. Until such reforms are pursued, expect defense budgets to remain sticky. Eric Lofgren is a research fellow at the Center for Government Contracting at George Mason University. He manages a blog and podcast on weapon systems acquisition. He previously served as a senior analyst at Technomics Inc., supporting the U.S. Defense Department's Cost Assessment and Program Evaluation office. https://www.defensenews.com/opinion/commentary/2020/05/26/will-defense-budgets-remain-sticky-after-the-covid-19-pandemic/

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  October 27, 2020 | International, C4ISR

  BAE Systems to Develop Attritable Air Vehicle Systems Under USAF Skyborg Program

  BAE Systems has been awarded an indefinite delivery/indefinite quantity contract to develop an attritable air vehicle system for the Skyborg program. Under this program, which has a contract ceiling of up to $400 million, the company will compete to develop a digital design for an unmanned aerial vehicle (UAV) capable of autonomous functions. The Skyborg program is intended to create a low-cost autonomous unmanned aerial vehicle that will partner with manned aircraft to increase air combat power. Teamed with a manned aircraft, the UAVs will leverage autonomy to disrupt and defeat adversaries in contested environments. “This award will accelerate the development and deployment of manned-unmanned teaming technologies to give the U.S. Air Force a decisive edge in the battlespace,” said Ehtisham Siddiqui, vice president and general manager of Controls and Avionics Solutions at BAE Systems. The UAVs will be designed with BAE Systems' autonomous systems, which include sensors and payloads that communicate across a shared network with manned aircraft. This modular and common system approach provides the foundation for rapid updates and integration to ensure the fleet is fielding the latest capabilities to defend against emerging threats. The shared network enables manned-unmanned teaming (MUM-T), which allows UAVs and manned aircraft to work together and complete missions more effectively. The network extends the reach of the fleet, while keeping the manned aircraft and personnel out of harm's way. It will allow the UAVs to serve as the eyes and ears for pilots, collecting and sending data from the battlespace to a manned fighter. https://www.defenseworld.net/news/28159#.X5iIvEeSnIV

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

  Contract Awards by US Department of Defense - June 15, 2020

  ARMY Shimmick Construction Co. Inc., Oakland, California, was awarded a $78,801,484 modification (P00012) to contract W912P5-17-C-0007 for Chickamauga Lock chamber replacement. Work will be performed in Chattanooga, Tennessee, with an estimated completion date of June 23, 2023. Fiscal 2020 civil construction funds in the amount of $78,801,484 were obligated at the time of the award. U.S. Army Corps of Engineers, Nashville, Tennessee, is the contracting activity. Heil Trailer International LLC, Gatesville, Texas, was awarded a $37,063,855 firm-fixed-price contract for mobile tactical retail refueling systems, authorized stockage list kits, production qualification testing (PQT) assets, log assets, support for PQT testing, refurbishment of PQT assets, refurbishment of integrated product support systems and contract data requirements lists. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of June 14, 2025. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity (W56HZV-20-D-0047). Cashman/Dutra JV, Quincy, Massachusetts, was awarded an $18,027,778 modification (P00009) to contract W912WJ-18-C-0010 for improvement dredging. Work will be performed in Boston, Massachusetts, with an estimated completion date of June 16, 2021. Fiscal 2019 and 2020 civil construction funds and 2020 non-federal funds in the amount of $18,027,778 were obligated at the time of the award. U.S. Army Corps of Engineers, Concord, Massachusetts, is the contracting activity. Versar Inc., Springfield, Virginia, was awarded a $10,200,664 firm-fixed-price contract to provide technical services including, but not limited to, inspections, assessments, repairs, testing, reports, training for facilities and operations-related projects within the U.S. Central Command area of responsibility. Bids were solicited via the internet with six received. Work will be performed in Camp Arifjan, Kuwait, with an estimated completion date of Dec. 14, 2022. Fiscal 2020 operations and maintenance (Army) funds in the amount of $10,200,664 were obligated at the time of the award. U.S. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity (W912DY-20-F-0262). Kleinfelder Inc., Rancho Cordova, California, was awarded a $9,476,096 firm-fixed-price contract for civil and geotechnical engineering related design and construction services. Bids were solicited via the internet with one received. Work will be performed in Sacramento, California, with an estimated completion date of April 22, 2023. Fiscal 2018 civil construction funds in the amount of $9,476,096 were obligated at the time of the award. U.S. Army Corps of Engineers, Sacramento, California, is the contracting activity (W91238-20-F-0080). Moog Inc., Blacksburg, Virginia, was awarded a $9,360,000 firm-fixed-price contract for 180 slip rings. Bids were solicited via the internet with one received. Work will be performed in Blacksburg, Virginia, with an estimated completion date of June 16, 2021. Fiscal 2020 procurement, defense-wide funds in the amount of $4,212,000 were obligated at the time of the award. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity (W56HZV-20-C-0121). AIR FORCE AECOM International Inc., Neu-Isenburg, Germany (FA5613-20-D-0008); Buchard-Horn GmbH, Frankfurt am Main, Germany (FA5613-20-D-0009); Dorsch Gruppe International GmbH, Weisbaden, Germany (FA5613-20-D-0010); igr AG, Rockenhausen, Germany (FA5613-20-D-0011); Jacobs Engineering Group Inc., Arlington, Virginia (FA5613-20-D-0012); and Peschla + Rochmes GmbH, Kaiserslautern, Germany (FA5613-20-D-0013), have been awarded a $49,000,000 indefinite-delivery/indefinite-quantity contract for architecture-engineer (A-E) services. This contract provides multi-disciplined A-E services for design of various U.S. military buildings, structures and facilities in Europe. Work will be performed primarily at Headquarters U.S. Air Force in Europe (USAFE); Ramstein Air Base, Germany; and USAFE geographically separated units in Germany. Work is expected to be completed June 14, 2027. This contract is the result of a competitive acquisition and seven offers were received. Fiscal 2020 operations and maintenance funds in the amount of $582 are being obligated for each awardee at the time of the award. The 700th Contracting Squadron, Ramstein Air Base, Germany, is the contracting activity. HDT Global, Salon, Ohio, has been awarded a $17,581,114 fixed-price, incentive-firm modification (P00055) to contract FA8204-13-C-0010 for Transporter Erector Replacement Program (TERP) production. This modification exercises Lot Three, Option Three and provides the government five TERP units. Work will be performed at Cincinnati, Ohio; and Florence, Kentucky, and is expected to be completed Jan. 20, 2022. The total cumulative face value is $83,751,189. Fiscal 2020 missile procurement funds in the amount of $17,581,114 are being obligated at the time of award. The Air Force Nuclear Weapons Center, Hill Air Force Base, Utah, is the contracting activity. The Boeing Co., St. Louis, Missouri, has been awarded a $13,000,000 indefinite-delivery/indefinite-quantity contract for the research and development for adaptive and robust control for hypersonic engagement research effort. The five-year contract will support research and development to comprehend and address impacts of complex flight environments on advanced weapon systems. Work will be performed in St. Louis, and is expected to be completed March 2025 for the initial task order. This award is the result of a competitive acquisition and one offer was received. Fiscal 2020 research, development, test and evaluation funds in the amount of $760,000 are being obligated at the time of award. Air Force Research Laboratory, Eglin Air Force Base, Florida, is the contracting activity (FA8651-20-D-0036). Lockheed Martin Corp., King of Prussia, Pennsylvania, has been awarded a $7,329,960 cost-plus-fixed-fee contract for Joint Air-to-Surface Standoff Missile (JASSM) Operational Realtime Combat Analysis (ORCA) Increment Two. This contract provides for enhancements to the software package known as the JASSM ORCA Increment Two. Work will be performed in King of Prussia, Pennsylvania, and is expected to be complete by June 14, 2021. This award is the result of a sole-source acquisition. Fiscal 2020 operations and maintenance funds in the amount of $3,299,806 are being obligated at the time of award. Air Force Life Cycle Management Center, Eglin, Air Force Base, Florida, is the contracting activity (FA8682-20-C-0007). NAVY Vigor Marine LLC, Portland, Oregon, is awarded a $30,269,098 firm-fixed-price contract (N32205-20-C-4037) for a 120-calendar day shipyard availability for the post shakedown availability of the expeditionary sea base U.S. Ship Miguel Keith (T-ESB 5). The $30,269,098 consists of the amounts listed in the following areas: Category “A” work item costs, additional government requirement, other direct costs, and the general and administrative costs. Work will be performed in Portland, Oregon. Work will include the furnishing of general services, shipboard access, clean and gas free tank voids and cofferdams, machinery room to pump room watertight door, machinery space deck utilization plan, hull perimeter lighting, machinery space closed circuit television monitoring system and bow camera, install of the third air condition plant in forward house, aft house grey water system isolation, segregate grey and black water transfer line, forward main fire loop installation, aft house habitability mods and engineering control room No. 1 deck head install. Work is expected to be complete by December 2020. The contract includes options which, if exercised, will bring the total contract value to $30,985,070. Funds will be obligated on June 15, 2020. Contract completion will be December 2020. Contract funds in the amount of $30,269,098, excluding options, are obligated for fiscal 2021 using operations and maintenance (Navy) funds. This contract was competitively procured with proposals solicited via the beta.sam.gov website and one offer was received. The Navy's Military Sealift Command, Norfolk, Virginia, is the contracting activity (N32205-20-C-4037). Summer Consultants Inc.,* McLean, Virginia, is awarded a $30,000,000 indefinite-delivery/indefinite-quantity architect-engineering contract with a maximum amount of $30,000,000 for multi-discipline architect-engineer services for mechanical, electrical, plumbing and fire-protection within the Naval Facilities Engineering Command (NAVFAC), Washington area of operations (AO). All work on this contract will be performed at various Navy and Marine Corps facilities and other facilities within the NAVFAC Washington AO including, but not limited to, Maryland (40%); Virginia (40%); and Washington, D.C. (20%). The work primarily includes design and engineering services for new construction, major repairs, renovations and alterations. Design services may include, design and engineering concepts, contract documents, construction cost estimates, surveys, shop drawing reviews, construction consultation and inspection and the preparation of construction record drawings. Engineering services may include technical reports and studies, site investigations and programming concepts. Work is expected to be complete by June 2025. The term of the contract is not to exceed 60 months. No task orders are being issued at this time and no funds will be obligated at the time of award. Funds will be obligated on individual task orders as they are issued. Future task orders will be primarily funded by operations and maintenance. This contract was competitively procured via Navy Electronic Commerce Online website and 10 proposals were received. NAVFAC Washington, Washington, D.C., is the contracting activity (N40080-20-D-0017). BAE Systems Jacksonville Ship Repair, Jacksonville, Florida, is awarded a $20,447,455 cost-plus-award-fee modification to previously awarded contract N00024-19-C-2317 to exercise options for the U.S. Ship Delbert D. Black (DDG 119) post shakedown availability (PSA). Work will be performed in Jacksonville, Florida. The work to be performed will include correction of government-responsible trial card deficiencies, new work identified between custody transfers at the time of PSA. The incorporation of approved engineering changes will be included that were not incorporated during the construction period, which are not otherwise the building yard's responsibility under the ship construction contract. The PSA is accomplished within a period of approximately 16 weeks between the time of ship custody transfer to the Navy and the shipbuilding and conversion (Navy), obligation work limiting date. The PSA encompasses all of the manpower, support services, material, non-standard equipment and associated technical data and documentation required to prepare for and accomplish the PSA. Work is expected to be complete by July 2021. Fiscal 2014 and fiscal 2020 shipbuilding and conversion (Navy) funding in the amount of $12,902,625 will be obligated at time of award. Funding will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. The University of California San Diego, San Diego, California, is awarded a $16,542,048 cost-plus-fixed-fee contract for the development of state-of-the-art improvements to unmanned systems and in situ ocean sampling. Work will be performed at the Scripps Institution of Oceanography, University of California San Diego, San Diego, California. The lines of effort will improve and implement new oceanographic sampling techniques and methods. Experimentation events will enable data collections to support the next generation of federated oceanographic data tasking, processing and dissemination for future warfighting and oceanographic applications. Work is expected to be completed by June 2025. The total cumulative value of this contract is $16,542,048. The base period is $16,542,048 and there are no proposed option periods. Fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $7,100,000 are obligated at time of award and will expire at the end of the current fiscal year. This contract was competitively procured under N00014-20-S-B001, “Long Range Broad Agency Announcement (BAA) for Navy and Marine Corps Science & Technology.” Since proposals are received throughout the year under the long range BAA, the number of proposals received in response to the solicitation is unknown. The Office of Naval Research, Arlington, Virginia, is the contracting activity (N00014-20-C-2039). DEFENSE LOGISTICS AGENCY Honeywell International, doing business as Honeywell Aerospace-Tucson, Tucson, Arizona, has been awarded a maximum $27,243,370 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for aircraft generator auxiliary power units in support of the Blackhawk helicopter platform. This was a limited acquisition as stated in Federal Acquisition Regulation 6.302-1 (a)(2). This is a five-year base contract with no option periods. Location of performance is Arizona, with a June 15, 2025, ordering period end date. Using military service is the Army. Type of appropriation is fiscal 2020 (Army) working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Redstone Arsenal, Alabama (SPRRA1-20-D-0054). Dixie Chemical Co. Inc., Pasadena, Texas, has been awarded a maximum $12,619,380 firm-fixed-price, requirements-type contract for high-density synthetic hydrocarbon jet propellant and priming fluid. This was a competitive acquisition with three responses received. This is a five-year contract with no option periods. Locations of performance are Texas, Oklahoma, Utah, Michigan, Alabama, Virginia, California, Arizona, Louisiana, Connecticut, Florida, Tennessee and Colorado, with a June 15, 2025, performance completion date. Using military services are Air Force and Navy. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy – Aerospace Energy, San Antonio, Texas (SPE601-20-D-1510). U.S. TRANSPORTATION COMMAND UPDATE: Two additional companies, Eastern Airlines LLC., Wayne, Pennsylvania (HTC711-20-D-CC03); and USA Jet Airlines Inc., Belleville, Michigan (HTC711-20-D-CC04), have been awarded firm-fixed-price contracts under the Domestic Airlift Charter Services, Federal Aviation Administration Part 121, indefinite-delivery/indefinite-quantity, fixed price Contract at an estimated overall program value of $697,000,000. These funds were obligated on individual task orders issued among sixteen contracts. The program initially began in October 2018. The contracts provide domestic air cargo and passenger charter services. Services shall be provided for the Department of Defense and other federal government agencies. Work will be performed within the continental U.S., all U.S. territories, Mexico, Canada, and the Caribbean Islands. Performance is from June 15, 2020, to Sept. 30, 2023. Ordering is decentralized and will be determined at the task order level. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2220903/source/GovDelivery/