HII nets $2.2B deal from GenDyn for Columbia-class submarine modules

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  July 9, 2018 | International, Aerospace, C4ISR

  Air Force quietly, and reluctantly, pushing JSTARS recap source selection ahead

  By: Valerie Insinna WASHINGTON — Congress is waging a public battle on the fate of the JSTARS recap program, but behind the scenes, the Air Force is quietly taking steps that will allow them to award a contract for a program that leaders say they don't need. The service received final proposal revisions for the JSTARS recap program on June 22, confirmed Air Force spokeswoman Maj. Emily Grabowski in a statement to Defense News. “The Air Force wants to be postured to move forward with JSTARS recap, if required. Therefore, we are continuing source selection while we continue to work with Congress on the way forward,” Grabowski said in a statement. Usually, the government solicits final proposals and pricing information from competitors just weeks before making a final downselect. Thus, if Congress decides to force the Air Force to continue on with the program, it's likely the service will be able to award a contract in very short order. The Air Force began the JSTARS recap program as an effort to replace its aging E-8C Joint Surveillance Target Attack Radar System ground surveillance planes with new aircraft and a more capable radar. The initial plan was to buy 17 new JSTARS recap jets from either Boeing, Lockheed Martin or Northrop Grumman. However, the service announced during February's fiscal year 2019 budget rollout that it preferred to cancel the JSTARS recap program and fund an “Advanced Battle Management System” that would upgrade and link together existing aircraft and drones, allowing them to do the JSTARS mission. The Air Force's continued source selection efforts are necessary due to Congress, which is split on the issue of whether to continue to the program. Both Senate defense committees have sided with the Air Force, and would allow it to kill JSTARS recap as long as it continues to fund the current JSTARS fleet. The Senate version of the defense spending bill also includes an additional $375 million to accelerate the ABMS concept with additional MQ-9 Reapers and other technologies. Meanwhile, the House version of the bill would force the Air Force to award an engineering and manufacturing development contract for JSTARS recap to one of the three competitors, which had been valued at $6.9 billion. However, some lawmakers have said they might be willing to accept a truncated recap program to bridge the way until ABMS is fielded. “All of the committees understand the need for moving to the advanced battle management system,” Gen. Mike Holmes, head of Air Combat Command, told reporters in June. “If there are disagreements between the committees, it's about whether we can move straight to that and hold onto our legacy JSTARS as a way to bridge until we do that, or do we need to do one more recap of that system” The timing of final proposal revisions actually puts source selection for JSTARS recap ahead of that of the still ongoing T-X trainer jet program, which as of late June had not reached that stage. However, Congress will likely need time to resolve the JSTARS recap issue — meaning a contract decision is far from imminent. The House and Senate armed services committees began the conference process in June, which could allow them to reconcile differences in the defense policy bill as early as this summer. However, only appropriations bills can be used to fund government programs like JSTARS recap, and spending legislation could be stuck in limbo for months past that. If deliberations stretch out, “the Air Force will continue to assess contract award timelines and approvals. If necessary, the Air Force will request an extension of proposal validity or updated pricing as appropriate,” Grabowski said. Meanwhile, lawmakers continue to debate the case in the public eye. In a July 3 editorial for The Telegraph, Republican Rep. Austin Scott, one of the biggest proponents of the recap program, argued that it would be more economical to proceed with JSTARS recap than to continue to do extensive depot maintenance on the legacy aircraft. “After 10 years of work, the Air Force is considering canceling the JSTARS recap program,” wrote Scott, whose district in Georgia is home to Robins Air Force base, where the JSTARS aircraft reside. “Their arguments do not take into account the significantly improved capabilities and increased capacity that the new aircraft will provide. The Air Force has ignored its own assessments in their recommendation for cancellation.” https://www.defensenews.com/air/2018/07/06/air-force-quietly-and-reluctantly-pushing-jstars-recap-source-selection-ahead/

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  May 19, 2020 | International, Aerospace, C4ISR

  Intelsat declares bankruptcy

  Nathan Strout and Valerie Insinna Satellite communications provider Intelsat declared bankruptcy May 13, although its subsidiary which provides services to the Department of Defense is not part of the Chapter 11 proceedings. CEO Stephen Spengler spun the action as a positive move, claiming it gave the company more financial flexibility for the Federal Communication Commission's clearing of C-Band spectrum to make way for 5G uses. Major satellite communications companies, including Intelsat, saw their stocks take a massive hit last fall when FCC Chairman Ajit Pai announced plans for a public auctioning of C-Band spectrum, which C-Band holders like Intelsat had hoped to sell off directly. The company says it will need to spend more than $1 billion to meet the FCC's deadlines for clearing out C-Band spectrum, which it needs to do in order to be eligible for $4.87 billion in accelerated relocation payments. Wiping the company's significant legacy debt off the books will help it accomplish those actions, said Spengler. “We intend to move forward with the accelerated clearing of C-band spectrum in the United States and to achieve a comprehensive solution that would result in a stronger balance sheet,” said Spengler in a statement. “This will position us to invest and pursue our strategic growth objectives, build on our strengths, and serve the mission-critical needs of our customers with additional resources and wind in our sails.” Subject to court approval, the company said in a statement it had already secured $1 billion in new financing in debtor-in-position funds, giving it the liquidity to continue current operations and finance C-Band clearing costs spurred by the Federal Communications Commission. The company claims that day-to-day operations will not be impacted by the restructuring process—it will continue to launch new satellites and invest in its network with no changes planned. The Chapter 11 petitions for Intelsat and some of its subsidiaries were filed with the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division. However, Intelsat General, which provides satellite communications to the U.S. military and allied military customers, is not part of the bankruptcy proceedings. “The immediate concern (for DoD) is continuity of operations and it sounds like that is not going to be a big issue,” said Todd Harrison, director of the Aerospace Security Project at CSIS. “The longer term concern for DoD is how does Intelsat eventually emerge from bankruptcy, and is there any kind of transfer in ownership or an increase in ownership stake that would be concerning from a national security perspective.” Specifically, investment from Chinese companies could raise alarms for the military and the Committee on Foreign Investment in the United States. “I think that's something that DoD will be watching, that Treasury will be watching,” he said. “It will be a positive side from DoD's perspective if wherever the capital is coming from is from a U.S. source.” When asked about potential Chinese investment in a bankrupt Intelsat May 14, U.S. Air Force Assistant Secretary for Acquisition, Technology and Logistics Will Roper acknowledged he had concerns. “It's a topic that's harder for me to talk about, but we are mindful of adversarial tactics in this period. Every crisis is an opportunity, and with companies coming under duress it is an opportunity for predatorial tactics targeting IP that countries would not have access to otherwise," he told reporters. Furthermore, Roper noted that the decision to financially support a company like Intelsat to prevent foreign investment requires a different calculus than a traditional stimulus. “The way to engage if we risk losing IP to a nation for whom it's not in our interest to have it, it's a very different strategy (than whether we) should engage to prop up a company through stimulus," he said. "When the former appears to happen, then we need to pivot into a different gear than we would be in the latter. We simply cannot do stimulus for every company that is in duress right now.” Intelsat isn't the only major satellite company to declare bankruptcy. OneWeb—who have been building a proliferated low earth orbit constellation to provide broadband—declared bankruptcy in March. DoD had been exploring utilizing OneWeb for communications in the Arctic among other things, and Lt. Gen. David Thompson, vice commander of Headquarters Space Force, noted earlier this week that the department's new Space Acquisition Council was looking into helping OneWeb and other financially vulnerable space companies impacted by COVID-19. Intelsat noted in a statement that several of its end markets had been impacted by COVID-19. Roper said he was concerned with how COVID-19 was disproportionately affecting space and aviation companies, which rely more heavily on commercial revenue than other parts of the defense industrial base. “That's why we've taken such aggressive means to accelerate contract awards," said Roper. “We're worried about space, as well, especially microelectronics. All of the Space Acquisition Council shares that concern. And as we see the Chapter 11s being filed—we're tracking them—but our concern as an acquisition enterprise has got to be industrial base health and not picking winners or losers with specific companies. It's ensuring that we are engaging to have a healthy industrial base on the other side." Roper added that he had approved the acceleration of a major satellite award that should be announced this week as part of the department's efforts to increase the flow of funding to defense companies during COVID-19. https://www.c4isrnet.com/battlefield-tech/space/2020/05/14/intelsat-declares-bankruptcy/

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  August 19, 2020 | International, Naval, C4ISR

  Navy information warfare project received $400 million funding boost

  Andrew Eversden WASHINGTON — An information warfare project run by Naval Information Warfare Systems Command (NAVWAR) recently received hundreds of millions of dollars in new funds after a successful first 18 months, NAVWAR announced Aug. 17. NAVWAR's Information Warfare Research Project (IWRP), which uses an agile acquisition tool known as an Other Transaction Authority to quickly contract for and deliver IW tools, recently received a $400 million funding increase and two-year performance period extension after hitting its $100 million funding ceiling a year before the project was set to expire next summer. The massive bump was approved by Assistant Secretary of the Navy for Research, Development and Acquisition James Geurts. The project, which kicked off in October 2018, now has a $500 million ceiling and a five-year performance period. “IWRP has proven its effectiveness and successfulness as a streamlined approach to rapid prototyping,” said Jee Youn Fickling, IWRP program manager at Naval Information Warfare Center (NIWC) Atlantic, in a statement. “As interest increases to do more prototyping in order to keep up with the pace of technology, IWRP OTA offers the flexibility and speed within 14 technology areas. The growth in interest from IWRP users across many Navy and Marine Corps commands and program offices and the growth in the size of the consortium, speaks volumes to the need to quickly make awards for prototypes.” The project focuses on technology areas that include tools for cyber warfare, autonomous systems, cloud computing and data analytics. IWRP partners with industry and academia through a consortium managed by Advanced Technology International, a non-profit that builds research and development partnerships. In the last 18 months, the IWRP has released more than 800 prototyping opportunities, according to the NAVWAR press release. The consortium has more than 580 partners. IWRP users include NAVWAR, NIWC Atlantic, NIWC Pacific, Naval Sea Systems Command Logistics, Maintenance and Industrial Operations, Program Executive Office (PEO) for Digital Enterprise Services, PEO for Manpower, Logistics and Business Solutions, PEO Command, Control, Communications, Computers and Intelligence Space Systems, PEO Integrated Warfare Systems, Marine Corps Systems Command, Naval Analytics Office and Office of Naval Research. “IWRP has been a game changer and has proven to be a key enabler in rapid delivery of IW capability to the warfighter,” said Nicole Stone, director of rapid prototyping – information warfare at NIWC Pacific, in a statement. “Collaboration with our partners in industry, small business and academia, with the flexibility necessary to adapt to evolving requirements, is critical to our success in winning the fight. IWRP provides that platform for us.” https://www.c4isrnet.com/information-warfare/2020/08/18/navy-information-warfare-project-received-400-million-funding-boost/