October 7, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

Here’s how many foreign military sales the US State Department OK’d in FY19

By: Aaron Mehta

WASHINGTON — The U.S. State Department cleared $67.9 billion in weapons in fiscal 2019, in an indication that America's position in the global arms trade remains strong.

The number, spread across 64 individual procurement requests from 28 different countries and a NATO consortium, represents the second year in a row that the overall value of foreign military sales requests have slightly declined. But the total still represents almost double the total cleared by the State Department in fiscal year 2016.

These numbers represent potential arms sales that the State Department cleared internally, then passed on to Congress through the Defense Security Cooperation Agency. The notifications do not represent final sales; if Congress does not reject the potential sale, it then goes into negotiations, during which dollar figures and quantities of equipment can change. In some cases, as highlighted by the large FMS request notification for Turkey to buy Patriot batteries, those sales will never happen.

However, while not solid dollars, notifications are a notable way of tracking interest in procuring American arms from foreign partners, and can be a leading indicator of final sales to come.

Geographically, the Pacific region led the way with 21 requests, totaling $24.8 billion in potential sales – notable given the emphasis put forth by the Trump administration that the Pacific represents a priority theater for the future. Following that was the Middle East, with 18 requests totaling $15.2 billion. Europe had 18 requests for $19.8 billion; the only nation from Africa, Morocco, put in six requests totaling $7.26 billion; and Canada put in three requests, for $731 million.

The biggest potential customer, at a time of a whole-of-government effort against China is underway, is Taiwan. Over four different requests, Taiwan requested $10.7 billion in sales, driven primarily by $8 billion for long-sought F-16 aircraft, as well as $2 billion for Abrams tanks.

In second place was Japan, with $7.54 billion in requested sales, spread over six requests. That was driven by three different tranches of SM-3 missiles and an Aegis Ashore missile defense system. Morocco, which was cleared for six separate requests totaling $7.26 billion on U.S. arms, came in third. Their procurement was driven mainly by its purchase of new F-16 fighter jets and the associated equipment, as well as a request for Abrams tanks.

As always with FMS notifications, a few large sales can drive the overall total. Sixteen of the 63 sales requests topped $1 billion, led by Taiwan's F-16 request ($8 billion), Poland's F-35 request ($6.5 billion), Morocco's F-16s ($3.79 billion), the U.K's procurement of Chinook helicopters ($3.5 billion), Turkey's Patriot request ($3.5 billion) and Japan's largest SM-3 request ($3.3 billion).

The F-16 was a significant driver of FMS requests this year, showing the Lockheed Martin legacy plane remains popular around the world. Eight requests, with a potential total of $15.8 billion in sales, involved the F-16, raging from the request for tranches of fighters from Taiwan, Morocco and Bulgaria to $125 million for Pakistan security support related to their F-16 fighters.

While the numbers are strong, Roman Schweizer, an analyst with Cowen, notes that political realities could upend an unusual number of these potential deals in the coming year.

“Notably, for FY19, there are a number of large sales that may be unlikely for political or other reasons: these include a $3.5B sale to Turkey of Raytheon's Patriot missile system, a $2B sale to Taiwan of General Dynamics' M1 Abrams tanks, and an $8B sale to Taiwan of Lockheed Martin F-16s,” he wrote in a note to investors. “We don't think a Turkish Patriot purchase is possible as they continue to own/operate Russian-made S-400s. And while Taiwan needs U.S. weapons (fighters, tanks and more), there is a legitimate concern that those sales could be halted if there is a broader strategic agreement with China on trade and economic issues.

“If that's the case, about 20% of this year's potential deals aren't viable, meaning this would be a step-down year but not quite as low as FY16's $37B in announcements.”

From a corporate level, Schweizer estimates Lockheed Martin is the big winner for the year with $32 billion, followed by Raytheon at $15 billion, Boeing at $9 billion, General Dynamics at $3 billion, Northrop Grumman at $1.2 billion and Textron $600 million.

A specific wrinkle for FY19's accounting was the inclusion of $3.9 billion as part of a controversial emergency package pushed through by the Trump administration for Saudi Arabia and the UAE. For the better part of a year, those weapons were tied up in Congress over concerns of how they will be used as part of the Saudi-led actions against Iranian-backed fighters in Yemen, an operation that has contributed to a humanitarian crisis in that country. The issue escalated following the death of columnist Jamal Khashoggi, which has been tied to the Saudi royal family.

In May, the State Department announced that an emergency exemption would be used to push those arm sales through; while the administration cited a broad threat from Iran in the region as the reason, the move received bipartisan rebuke from both the Senate and the House, with some members expressing concern this was a precedent-setting move to take away arms sale veto powers from Congress.

That $3.9 billion was divided among seven FMS notifications, four for the UAE and three for Saudi Arabia.

https://www.defensenews.com/global/2019/10/04/heres-how-many-foreign-military-sales-the-state-department-okd-in-fy19/

On the same subject

February 25, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Contract Awards by US Department of Defense - February 24, 2019
NAVY The Boeing Co., St. Louis, Missouri, is awarded a $93,000,000 cost-plus-fixed-fee, firm-fixed-price indefinite-delivery/indefinite-quantity contract. This contract incorporates the next three planned configurations of the operator flight program/system configuration set into the Royal Australian Air Force F/A-18 F and EA-18G aircraft training systems. Additionally, this contract procures spares, support equipment, technical manual updates and on-site training. Work will be performed in St. Louis, Missouri (85%) and Amberley, Australia (15%) and is expected to be completed in February 2025. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was not competitively procured pursuant to 10 U.S. Code 2304(c)(4). Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity (N61340-20-D-0003). Arwi JV LLC,* National City, California, is awarded an indefinite-delivery/indefinite-quantity contract with a maximum amount of $10,000,000 for roofing repair and maintenance at Naval Base Point Loma, California. Initial task order is awarded at $350,180 for re-roofing at Buildings 260 and 262. Included is the requirement to repair and maintain roof components that are incidental to the main roof structure, such as scupper drains, downspouts, gutters, as well as roof-mounted hardware that may require to be removed and reinstalled by reason of the primary roof repair requirements. Work for this task order is expected to be completed by June 2020. All work on this contract will be performed in San Diego, California. The term of the contract is not to exceed 60 months with an expected completion date of February 2025. Fiscal 2020 operations and maintenance, Navy (OMN) contract funds in the amount of $350,180 are obligated on this task order and will expire at the end of the current fiscal year. Future task orders will be primarily funded by OMN. This contract was competitively procured via the Navy Electronic Commerce Online website with four proposals received. The Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity (N62473-20-D-0041). Raytheon Co., Missile Systems, Tucson, Arizona, is awarded a $7,992,944 cost plus fixed-fee modification to previously awarded contract (N00024-17-C-5405) for design agent engineering and technical support services for the Phalanx Close-In Weapon System, SeaRAM, and Land-based Phalanx Weapon System. Only one responsible source and no other supplies or services will satisfy agency requirements. Phalanx Close-In Weapon System (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. 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. Work will be performed in Tucson, Arizona, and is expected to be completed by January 2022. Fiscal 2020 weapon procurement (Navy) funding in the amount of $7,992,944 will be obligated at time of award and will not expire at the end of the current fiscal year. In accordance with 10 U.S. Code 2304(c)(1), this contract was not competitively procured. The Naval Sea Systems Command, Washington Navy Yard, District of Columbia, is the contracting activity. ARMY Griffon Aerospace Inc.,* Madison, Alabama, was awarded a $49,957,259 order-dependent contract to procure MQM-170 "Outlaw" Remotely Piloted Vehicle Targets, MQM-171 "Broadsword" Unmanned Aerial Systems - Targets, depot level repair and maintenance, storage of government furnished equipment, base operations services, field operations services, qualification training execution, and inventory and transfer support for targets management office and other Department of Defense customers. 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 Feb. 23, 2022. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-20-D-0006). L-J Inc.,* Cayce, South Carolina, was awarded a $13,456,000 firm-fixed-price contract for furnishing plant, equipment, labor, transportation, fuel, lubricant, supplies and materials, and performing all operations in connection with raising dikes and berms, installation of geotextile, and installation of new spillway systems in Clouter Creek, Berkeley County, South Carolina. 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 June 18, 2021. U.S. Army Corps of Engineers, Charleston, South Carolina, is the contracting activity (W912HP-20-C-0001). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2092565/source/GovDelivery/
November 3, 2020 | International, Naval

BWXT CEO: Navy’s Next-Generation SSN(X) Attack Boat Will Build Off Columbia Class
By: Sam LaGrone November 2, 2020 6:52 PM The Navy's next attack submarine will feature technology in the Columbia-class program and be significantly larger than the current class of the Virginia-class attack submarines, the chief executive of BWX Technologies said on Monday as part of the company's third-quarter earnings call. The head of the company that builds the nuclear reactors for the Navy's aircraft carriers and submarines said the follow-on to the Virginia SSN would be significantly larger than the current crop of attack boats. “We do expect it will be a larger type of submarine, probably in the size class of the Columbia, but there's not much more to tell than that. But we're working with our Navy customer in what that would look like and how we could take that into production,” Rex Geveden said. “It has the moniker SSN(X) until it gets a class name, and there's some thought, discussion and analysis. It would be the follow-on to the Virginia fast-attack submarine, and it would feather in sometime in the late 2030s.” USNI News understands that Geveden was referring to the submarine's diameter rather than its underwater displacement. The Columbia class is planned to displace about 20,000 tons – about 2,000 more than the current Ohio ballistic missile submarines. The current Virginias displace about 8,000 tons. The Columbia-class hulls are about 42-feet in diameter, while the Virginias are 36-feet wide. A wider hull for submarines can improve characteristics like stealth, allowing ship designers to build in more sound-deadening technology and allow room to develop systems to increase a boat's speed, but it is more expansive to build. The comments are in line with remarks from Chief of Naval Operations Adm. Mike Gilday, who called for the development of a more aggressive attack submarine as a lynchpin of future fleet build-up. “The advantage we have in the undersea is an advantage that we need to not only maintain, but we need to expand. I want to own the undersea for forever because I know that I can be really lethal from the undersea,” he said last month. “When you think attack boat, you're thinking, that can move around the timing and tempo of an operational commander's need to deliver ordinance on target in a timely fashion. And so it's got to be a fast sub as well.” After the Cold War, the U.S. submarine fleet pivoted from the deep-diving, heavily armed Seawolf-class of attack submarines to the Virginia-class, which was optimized to perform signals intelligence and special operations missions in the littorals. “Specifically, the Navy indicates that the next-generation attack submarine should be faster, stealthier, and able to carry more torpedoes than the Virginia class—similar to the Seawolf-class submarine,” the CBO said in late 2018. The return to a more heavily armed, faster submarine is in line with the latest National Security Strategy that places Russia and China at the top of the threat list. Geveden was optimistic on BWXT's outlook for work to build reactors for the Navy's carriers and submarines well into the future. “The nuclear operations groups has really ramped up on the first Columbia, and we are having expectational performance on that program for the Navy customer, and we anticipate another order in the next multi-year pricing agreement,” he said. “We also had an exceptional year of performance on aircraft carriers benefitting from the acceleration of the Ford-class and believe this program will continue for decades as the U.S.'s main force projection asset.” While the company is bullish on the outlook for submarine work, it remains unclear at what rate the Navy will be buying them. Like General Dynamics Electric Boat, which briefed investors last week, BWXT has not received a clear signal from the Navy that it would need to build submarines at the rate of three a year, in line with a call from Secretary of Defense Mark Esper as part of his Battle Force 2045 plan. “In the previous shipbuilding plan, there were 48 fast attack submarines. In the current one, it went to 66. Esper said he was looking at something like 70 to 80 fast attack submarines in the fleet,” Geveden said. “When we last discussed any capital needs around that, what we said was if there was a single year of a third Virginia, we could probably accommodate that without any additional buildout. We haven't evaluated a permanent three-Virginia tempo, and we haven't discussed any capital needs around that, but we would have to invest in that case.” https://news.usni.org/2020/11/02/bwxt-ceo-navys-next-generation-ssnx-attack-boat-will-build-off-columbia-class
May 6, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Contract Awards by US Department of Defense - May 05, 2020
NAVY Raytheon Space and Airborne Systems, McKinney, Texas, is awarded $325,000,000 for a firm-fixed-price contract for the repair of the Advanced Targeting Forward Looking Infrared System used in support of the F/A-18 aircraft. Work will be performed in McKinney, Texas (59%); and Jacksonville, Florida (41%). Work is expected to be complete by May 2025. This is a five-year base period with no option periods. Annual working capital (Navy) funds in the amount of $54,507,477 will be obligated at time of award, and funds 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), and one offer was received. The Naval Supply Systems Command, Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-20-D-WC01). Flightline Electronics Inc., Victor, New York, is awarded an $18,588,079 firm-fixed-price indefinite-delivery/indefinite-quantity contract for the manufacture and delivery of 543 TTU-597/E engineering change proposal kits to address parts obsolescence and availability issues on the fuel control test set for Navy and Foreign Military Sales customers. Additionally, this contract provides logistics support documents to include technical manual updates, provisioning data and the interim support items list. Work will be performed in Victor, New York (60%); and Cheltenham, Gloucestershire, United Kingdom (40%), and is expected to be complete by May 2024. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was not competitively procured pursuant to 10 U.S. Code 2304 (c)(1). The Naval Air Warfare Center, Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-20-D-0008). Bell Boeing Joint Project Office, Amarillo, Texas, is awarded a $10,178,059 modification (P00029) to a previously awarded, fixed-price-incentive-firm-target, cost-plus-fixed-fee contract (N00019-17-C-0015). This modification provides for additional repairs in support of the V-22 Common Configuration Readiness and Modernization program. Additionally, this modification provides non-recurring engineering for a drive tube engineering change proposal in support of V-22 (Osprey multirole combat aircraft) production. Work will be performed in Fort Worth, Texas (30%); Ridley Park, Pennsylvania (15%); Amarillo, Texas (13%); Red Oak, Texas (3%); East Aurora, New York (3%); Park City, Utah (2%); McKinney, Texas (1%); Endicott, New York (1%); various locations within the continental U.S. (28%); and various locations outside the continental U.S. (4%). Work is expected to be complete by September 2022. Fiscal 2018 aircraft procurement (Navy) funds in the amount of $4,804,019; fiscal 2019 aircraft procurement (Navy) funds in the amount of $5,119,758; fiscal 2020 operations and maintenance (Navy) funds in the amount of $240,500; and fiscal 2020 aircraft procurement (Navy) funds in the amount of $5,108 will be obligated at time of award, $5,044,519 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. AIR FORCE StandardAero Inc., San Antonio, Texas, has been awarded a $237,395,588 firm-fixed-price, indefinite-delivery/indefinite-quantity contract action for the J85 engine repair. The contractor will provide maintenance, repair and overhaul repairs of the J85 engine. Work will be performed in San Antonio, Texas, and is expected to be completed by May 2028. This award is the result of a competitive acquisition in which one bid was received. Fiscal 2020 operations and maintenance funds in the amount of $10,135,844 is being obligated at the time of award. Air Force Life Cycle Management Center, Tinker Air Force Base, Oklahoma, is the contracting activity (FA8124-20-D-0005). L-3 Communications Integrated Systems, Greenville, Texas, has been awarded a not-to-exceed $76,000,028 cost-plus-fixed-fee, undefinitized contract modification (P00008) to contract FA8620-19-F-4872 for procurement of Group B materials, ground systems integration lab and subcontracts. Work will be performed in Greenville, Texas, and is expected to be completed by March 31, 2024. This contract involves 100% Foreign Military Sales and is the result of a sole-source acquisition. Foreign Military Sales funds in the amount of $37,240,021 are being obligated at the time of award. The 645th Aeronautical Systems Group, Wright-Patterson Air Force Base, Ohio, is the contracting activity. DMS Contracting Inc., Mascoutah, Illinois (FA4407-20-D-0001); C. Rallo Contracting Co. Inc., St. Louis, Missouri (FA4407-20-D-0002); Davinroy Mechanical Contractor Inc., Belleville, Illinois (FA4407-20-D-0003); Hank's Excavating & Landscaping Inc., Belleville, Illinois (FA4407-20-D-0004); J&B Builders Inc., St. Charles, Illinois (FA4407-20-D-0005); Mantle-Plocher JV, Worden, Illinois (FA4407-20-D-0006); Surmeier & Surmeier, Mascoutah, Illinois (FA4407-20-D-0007); and Pugsley Byrne JV LLC, Brighton, Illinois (FA4407-20-D-0008), have been awarded indefinite-delivery/indefinite-quantity contracts with a maximum estimated aggregate value of $45,000,000 under a multiple award task order contract. The awards are in support of the multiple award paving contract program to support the Scott Air Force Base construction program, including paving and civil categories. Work will be performed on Scott AFB, Illinois, and is expected to be completed May 4, 2021. These awards are the result of a competitive acquisition and nine offers were received. Fiscal 2020 operations and maintenance funds in the amount of $500 are being obligated to each contractor at the time of award. The 375th Contracting Squadron, Scott Air Force Base, Illinois, is the contracting activity. DEFENSE LOGISTICS AGENCY SupplyCore Inc.,* Rockford, Illinois, has been awarded a maximum $60,000,000 firm-fixed-price contract for facilities maintenance, repair and operations items. 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 an 18-month bridge contract with no option periods. Locations of performance are Illinois and Alaska, with a Nov. 5, 2021, performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and Coast Guard. Type of appropriation is fiscal 2020 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE8E3-20-D-0011). Raytheon Co., Andover, Massachusetts, has been awarded a maximum $36,688,190 firm-fixed-price delivery order (SPRRA2-20-F-0077) against a seven-year basic ordering agreement (SPRRA2-19-R-0046) for radio frequency exciters. 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 three-year, 11-month contract with no option periods. Location of performance is Massachusetts, with a March 31, 2024, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting activity is Defense Logistics Agency Aviation, Redstone Arsenal, Alabama. Leading Technology Composites Inc., doing business as LTC Inc., Wichita, Kansas, has been awarded a maximum $26,752,704 modification (P00010) exercising the second one-year option period of a one-year base contract (SPE1C1-18-D-1073) with three one-year option periods for enhanced side ballistic inserts. This is a firm-fixed-price, indefinite-quantity contract. Location of performance is Kansas, with a May 4, 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 activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. American Water Enterprises LLC, Camden, New Jersey, has been awarded a $21,810,972 modification (P00251) to a 50‐year contract (SP0600‐03‐C‐8268), with no option periods for the ownership, operation and maintenance of the water and wastewater utility systems at Fort Rucker, Alabama. This is a fixed-price with prospective-price-redetermination contract. Locations of performance are New Jersey and Alabama with an April 15, 2054, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2054 Army operations and maintenance funds. The contracting activity is Defense Logistics Agency Energy, Fort Belvoir, Virginia. Raytheon Co., Andover, Massachusetts, has been awarded a maximum $8,362,088 firm-fixed-price delivery order (SPRRA2-20-F-0079) against a seven-year basic ordering agreement (SPRRA2-19-R-0046) for radio frequency exciters. 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, nine-month contract with no option periods. Location of performance is Massachusetts, with a Jan. 31, 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 Defense Logistics Agency Aviation, Redstone Arsenal, Alabama. ARMY ASM Research LLC, Fairfax, Virginia, was awarded a $40,284,199 firm-fixed-price contract to provide comprehensive credentialing and privileging program support for the Army National Guard or Air National Guard. 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, 2025. The National Guard Bureau Operational Contracting Division, Arlington, Virginia, is the contracting activity (W9133L-20-D-1000). Miller Electric Co. Inc., Reno, Nevada, was awarded a $12,000,000 modification (P00004) to contract W911SA-17-D-2006 for sustainment, modernization and improvement projects for the 88th Army Reserve Centers throughout the states of Kansas and Nebraska. 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 May 31, 2021. The 419th Contract Support Brigade, Fort McCoy, Wisconsin, is the contracting activity. CAE USA Inc., Tampa, Florida, was awarded an $11,157,134 firm-fixed-price contract for advanced helicopter flight training support services. Bids were solicited via the internet with seven received. Work will be performed at Fort Rucker, Alabama, with an estimated completion date of May 15, 2027. Fiscal 2020 operations and maintenance, Army funds in the amount of $11,157,134 were obligated at the time of the award. U.S. Army Mission and Installation Contracting Command, Fort Eustis, Virginia, is the contracting activity (W9124G-20-C-0008). Manhattan Construction Co., Tulsa, Oklahoma, was awarded an $8,300,000 modification (PZ0001) to contract W912BV-20-C-0008 for alternate care facilities in Oklahoma. Work will be performed in Tulsa and Oklahoma City, Oklahoma, with an estimated completion date of May 10, 2020. Fiscal 2020 civil construction funds in the amount of $8,300,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Tulsa, Oklahoma, is the contracting activity. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Perspecta Labs Inc., Basking Ridge, New Jersey, was awarded a $29,917,092 cost-plus-fixed-fee contract for a research project under the Fast Network Interface Cards (FastNICs) program. The FastNICs program will speed up applications such as the distributed training of machine learning classifiers by 100x through the development, implementation, integration and validation of novel, clean-slate network subsystems. Work will be performed in Basking Ridge, New Jersey, with an expected completion date of May 2024. Fiscal 2019 research, development, test and evaluation (RDT&E) funding in the amount of $1,110,000; and fiscal 2020 RDT&E funding in the amount of $2,925,000 are being obligated at time of award. This contract was a competitive acquisition under an open broad agency announcement and eight offers were received. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity (HR0011-20-C-0090). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2177362/source/GovDelivery/

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