HDT Awarded $432 Million Contract for Army Standard Family of Rigid Wall Shelters

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  November 7, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

  Contract Awards by US Department of Defense - November 6, 2018

  DEFENSE LOGISTICS AGENCY Calpine Energy Solutions LLC, San Diego, California, has been awarded a $67,252,189 firm-fixed-price, requirements contract to supply and deliver retail electricity and ancillary/incidental services. This was a competitive acquisition with 11 offers received. This is a 36-month contract with no option periods. Locations of performance are Illinois, Pennsylvania, Maryland and California, with a Dec. 31, 2021, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2019 through 2022 Navy working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE60419D8000). Loc Performance Products Inc.,* Plymouth, Michigan, has been awarded a maximum $52,389,123 fixed-price, indefinite-delivery/indefinite-quantity contract for truck final drives. This was a competitive acquisition with two responses received. This is a five-year contract with no option periods. Location of performance is Michigan, with an April 30, 2025, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2024 Army working capital funds. The contracting agency is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-19-D-0015). Direct Energy Business LLC, Iselin, New Jersey, has been awarded a $44,276,459 firm-fixed-price, requirements contract to supply and deliver retail electricity and ancillary/incidental services. This was a competitive acquisition with 11 offers received. This is a 36-month contract with no option periods. Locations of performance are Maryland, Washington, District of Columbia, and New Jersey, with a Dec. 31, 2021, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2019 through 2022 Navy working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE60419D8001). Kinder Morgan Tank Storage Terminal LLC, Carson, California, has been awarded a $40,510,848 firm-fixed-price contract to receive, store and ship aviation fuel. This was a competitive acquisition with one offer received. This is a four-year contract with one five-year option period. Location of performance is California, with a Nov. 9, 2022, performance completion date. Using customer is Defense Logistics Agency Energy. Type of appropriation is fiscal year 2019 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE603-19-C-5001). ARMY M.C. Dean Inc., Tysons Corner, Virginia (W912GB-19-D-0002); and PAE Professional Services LLC, Falls Church, Virginia (W912GB-19-D-0001), will compete for each order of the $49,900,000 firm-fixed-price contract for construction surveillance services. Bids were solicited via the internet with six received. Work locations and funding will be determined with each order, with an estimated completion date of Nov. 2, 2024. U.S. Army Corps of Engineers, Wiesbaden, Germany, is the contracting activity. DRS Sustainment Systems Inc., St. Louis, Missouri, was awarded a $17,274,668 modification (P00032) to contract W56HZV-16-C-0028 for Joint Assault Bridges. Work will be performed in West Plains, Missouri, with an estimated completion date of May 11, 2024. Fiscal 2018 other procurement, Army funds in the amount of $17,274,668 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. AIR FORCE Applied Research Solutions, Beavercreek, Ohio, has been awarded a $38,788,878 cost-plus-fixed-fee contract, plus an option amount of $5,967,447, for sensing, learning, autonomy, and knowledge engineering research and development. This contract is to conduct research and develop multi-domain technologies and strategies to orchestrate closed-loop sensing that manages knowledge from environment understanding to mission effects, across multiple missions. Work will be performed at Wright-Patterson Air Force Base and in Dayton, Ohio, and is expected to be completed by March 4, 2024. Fiscal 2019 research and development funds in the amount of $1,254,000 are being obligated at the time of award. Air Force Research Laboratory, Wright-Patterson AFB, Ohio, is the contracting activity (FA8650-19-C-1692). Honeywell International Inc., Albuquerque, New Mexico, has been awarded a $7,838,175 firm-fixed-priced contract for the repair and upgrade of the C-5M Super Galaxy's Versatile Integrated Avionics/Avionics Integrated Units (VIA/AIUs) repair and upgrade. This order subsumes all work on previous order FA8625-18-F-6801, providing for the repair and upgrade of 85 of the existing -903 and -904 configuration VIA/AIUs to the -905 configuration. Work will be performed in Albuquerque, New Mexico, and is expected to be completed by July 5, 2020. This award is the result of a sole-source acquisition. Fiscal 2017 aircraft procurement funds in the amount of $7,146,972; and fiscal 2018 aircraft procurement funds in the amount of $691,203 are being obligated at the time of award. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8625-19-F-6801). NAVY CACI Enterprise Solutions Inc., Chantilly, Virginia, was awarded a $26,241,210 firm-fixed-price, cost-plus-fixed-fee task order contract for integrated business systems support services. Information technology services in this contract will assist Military Sealift Command's (MSC) business systems and ashore operations branch manage, operate, and maintain the command's business systems, as well as interfaces with the Navy enterprise defense business systems. Additionally, this contract will allow MSC to integrate all of its business systems into a single, integrated business system to meet emergent and newly mandated requirements specifically, federal compliance mandates such as financial improvement and audit readiness, growing cybersecurity concerns, cloud migration, and interoperability and integration with Navy and federal programs of records. This integrated system is a new requirement, necessitating a single support contract to achieve interoperability, maintain and sustain fleet operations, and effect a total cost of ownership model. This contract includes one 12-month base period and four 12-month options which, if exercised, would bring the cumulative value of this contract to $125,367,596. Work will be performed in Norfolk, Virginia, and is expected to be completed Dec. 31, 2019. If options are exercised, work will continue through Dec. 31, 2023. Fiscal 2019 working capital funds (Navy and Transportation Command) in the amount of $19,718,408 will be obligated at the time of award. Funds will not expire at the end of the current fiscal year. This contract was competitively procured, with proposals solicited via the National Institutes of Health Information Technology Acquisition and Assessment Center's CIO-SP3 website, with four offers received. The Navy's Military Sealift Command, Norfolk, Virginia, is the contracting activity (N3220519F1044). (Awarded Nov. 5, 2018) CORRECTION: Contracts awarded on Oct. 25, 2018, to Central Lake Armor Express Inc.,* Central Lake, Michigan, for a ceiling of $59,369,617 (M67854-19-D-1509) incorrectly stated the production quantity. The correct quantity is 1,322,650 Plate Carrier Generation III - Soft Armor Inserts. Marine Corps Systems Command, Quantico, Virginia, is the contracting activity. *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1683955/source/GovDelivery/

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  July 4, 2018 | International, Aerospace, Naval, Land

  US Navy, Marine Corps order dozens of Osprey aircraft in $4.2B deal

  By: Andrew C. Jarocki WASHINGTON ― The U.S. Navy and Marine Corps continue to invest in vertical takeoff aircraft, announcing a $4.2 billion contract with the Bell-Boeing Joint Program Office for dozens of new V-22 Osprey tilt-rotor aircraft. The agreement provides for the manufacture and delivery of 39 CMV-22B aircraft for the Navy and 14 MV-22B aircraft for the Marines. The delivery is expected to be completed by November 2024. The Navy will use the new tilt rotors for transporting personnel and cargo from shore to aircraft carriers. The Osprey is also used in infiltration/exfiltration operations. The V-22 and its variations have seen use by the U.S. Air Force for resupply operations, and by the Marines in Syria. The Army is also interested in developing vertical lift capabilities for deploying strike teams. The contract included a sale of four MV-22B aircraft for the government of Japan, where five American Ospreys arrived this spring to begin a deployment based in Tokyo. The purchase “enables the U.S. Navy to begin advancing its carrier onboard delivery fleet with modern tiltrotor aircraft” Kristin Houston, vice president for Boeing tilt-rotor programs and director of the Bell-Boeing V-22 program, said in a news release. The Air Force will also receive one new CV-22B from the contract. https://www.defensenews.com/industry/2018/07/03/us-navy-marine-corps-order-dozens-of-osprey-aircraft-in-42b-deal/

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  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