House defense bill pushes US Air Force on jet trainer availability

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  May 19, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  A $17 Billion Pot of National-Security Stimulus Aid Goes Begging

  By David McLaughlin and Anthony Capaccio There's a $17 billion pot of money in the pandemic aid package for companies vital to national security -- and no one seems to want it. The $2 trillion rescue package Congress adopted in late March includes loans and loan guarantees specifically for companies “critical to maintaining national security.” The funds at first were seen as largely directed at Boeing Co., which at the time had been pleading for a government bailout. But after selling $25 billion in bonds to investors, the aircraft maker turned down the aid, which would have come with strings attached that it didn't like. With the $17 billion up for grabs, the U.S. defense industry is asking the Trump administration to change the criteria for getting some of it, arguing that the terms are too strict. The Treasury Department, which has sole authority over the $17 billion, has limited the companies that qualify to those whose work is designated DX, which means it ranks highest on the military's list of national priorities, or to companies that have facilities with top-secret security clearances. Only about 20 companies applied by the May 1 deadline, according to the Defense Department. There are about 300,000 companies in the Pentagon's contractor supply chain. Earlier: Defense Firms to Vie for Virus Aid With Boeing Weighing Options “What we're hearing across the board is that the restrictions and requirements on the money are pretty onerous, and a majority of companies just can't apply for the money,” said Hawk Carlisle, president of the National Defense Industrial Association, which represents defense contractors. It's another example of the Trump administration's struggle to help businesses that have been decimated by the pandemic. The initial round of $349 billion aimed at small businesses sparked outrage after large restaurant chains, a professional basketball franchise and numerous publicly traded companies were able to get money while mom-and-pop businesses were shut out. Treasury has approved about $25 billion out of the $35 billion that Congress allocated for payroll assistance to airlines and cargo carriers. Earlier: American Gets Most as Biggest Airlines Win Bulk of U.S. Aid On Tuesday, Democratic Senator Maria Cantwell of Washington asked Treasury Secretary Steven Mnuchin to broaden the criteria for qualifying for loans and reopen the application process. “Treasury's implementation of the loan program has not adequately addressed the needs of the aerospace supply chain and its workforce, which is fundamental to America's industrial base,” she wrote. It's not just the defense industry raising concerns. Ellen Lord, the Defense Department's top acquisition official, told reporters last month that Treasury's criteria may have prevented companies with the greatest need from qualifying. “We have talked with them several times; they have reached out to us,” Lord said. “I am not sure companies with DX-rated contracts are perhaps the ones that have the most critical needs.” She said suppliers already have been giving DX programs priority, which they are required to do under Pentagon rules. The Treasury Department didn't respond to requests for comment. Congress stipulated that companies receiving the national-security loans must provide the government with warrants, equity or senior debt securities and agree to limits on dividends, stock buybacks and executive pay. But it's Treasury's additional criteria that defense firms say are too narrow. It restricted loans to two groups: those with a contract with the DX rating or those with facilities that have top-secret security clearances. Eric Fanning, president of the Aerospace Industries Association, whose members include Lockheed Martin Corp. and BAE Systems Plc, said the criteria should be broadened to cover more companies. A Pentagon spokesman, Air Force Lieutenant Colonel Mike Andrews, said in an email that the Defense Department has determined that only a few programs required a DX rating, but opted to stop releasing their names as of December 2018. Before that, the Pentagon had said there are about a dozen DX programs, including those for the Minuteman III ICBM program, the B-2 bomber, presidential aircraft, missile warning satellites and nuclear-missile submarines. Some of the major companies involved are Boeing, Lockheed Martin, Northrop Grumman Corp. and General Dynamics Corp. The Pentagon doesn't track the number of companies that possess top-secret clearances, but only the number of facilities cleared at that level, spokeswoman Cynthia McGovern said in an email. Like Boeing, the large companies that might qualify for the Treasury loans are able to tap the capital markets to meet their financing needs, especially now that the Federal Reserve is pumping hundreds of billions of dollars into debt markets by buying corporate bonds and bond funds. Earlier: Here's Where $881 Billion in U.S. Aid Went in Month of Spending The Pentagon is helping by increasing progress payments by $3 billion and speeding up those payments to contractors, which range from the biggest makers of weapons systems to the more numerous, lower-tier suppliers of everything from software to uniforms. But many contractors also rely on commercial deals to supplement their government work. With the airline industry facing a sharp and lengthy contraction, aviation suppliers could see a greater need for rescue financing in the near future, said Fanning of the aerospace industry group. Boeing, for example, in late April said it's shrinking its workforce by about 10%, or about 16,000 jobs, to conserve cash. General Electric Co. is cutting about 13,000 jobs in its jet-engine operation. Spirit AeroSystems Holdings Inc., a supplier to Airbus and Boeing, is also cutting jobs. “We don't have a sense yet of where the stress points are in the industrial base,” Fanning said. “The health of supply chains can take a while to sort out and show where there are problems.” https://www.bloomberg.com/news/articles/2020-05-14/a-17-billion-pot-of-national-security-stimulus-aid-goes-begging

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  June 25, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

  Contract Awards by US Department of Defense - June 21, 2019

  U.S. SPECIAL OPERATIONS COMMAND Raytheon Space and Airborne Systems, McKinney, Texas, was awarded a $96,639,799 indefinite-delivery/indefinite-quantity contract modification (P00007) with firm-fixed-price and cost-plus-fixed-fee contract line items to an existing contract (H92222-16-D-0033). This contract modification increases the ceiling from $203,360,201 to $300,000,000 for continued low-rate initial production of the Silent Knight Radar system in support of U.S. Special Operations Command (USSOCOM). Fiscal 2019 procurement funds in the amount of $54,720,000 are being obligated at time of contract modification. The remaining costs will be funded via delivery/task orders, and depending on the requirement, may be funded using research, development, test and evaluation; procurement; or operations and maintenance funding. The ordering period is valid for five years. The work will be performed in McKinney and Forest, Mississippi, and is scheduled to be completed by October 2022. USSOCOM headquarters, Tampa, Florida, is the contracting activity. NAVY Leidos Inc., Reston, Virginia, is awarded an estimated $72,817,062 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, cost-plus-incentive-fee, firm-fixed-price contract for the Transformational Reliable Acoustic Path System (TRAPS) on behalf of the Maritime Surveillance Systems Program Office, Navy Program Executive Office Submarines. The TRAPS capability complements fixed surveillance systems and the surveillance towed array sensor system. TRAPS provides flexible and responsive wide area surveillance for theater antisubmarine warfare commanders worldwide. This contract has a three-year ordering period up to the contract award amount. There are no options. Work will be performed in Long Beach, Mississippi, and is expected to be completed by June 2022. No funding is obligated at the time of award. Funds will be obligated as individual delivery orders are issued. This sole-source contract was not competitively procured in accordance with 10 U.S. Code 2304(c)(1) - only one responsible source (Federal Acquisition Regulation subpart 6.302-1). The Naval Information Warfare Systems Command, San Diego, California, is the contracting activity (N00039-19-D-0030). FlexDecks Inc.,* Houston, Texas, is awarded a $17,200,997 firm-fixed-price, indefinite-delivery/indefinite-quantity contract to procure up to 40 each V-22 and MV-22B maintenance wing platform stands for the Marine Corps, Air Force, Navy and the government of Japan. Work will be performed in Houston, Texas, and is expected to be completed in June 2024. Fiscal 2017 and 2018 aircraft procurement and foreign military sales funds in the amount of $5,490,973 will be obligated at the time of award, $4,519,637 of which will expire at the end of the current fiscal year. This contract was competitively procured via an electronic request for proposals as a 100% small business set-aside; three offers were received. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-19-D-0134). Lockheed Martin Rotary and Mission Systems, Syracuse, New York, is awarded a $16,273,896 cost-plus-fixed fee, firm-fixed-price, cost contract (N00024-19-C-6269) for the procurement of multifunction modular masts for new construction Virginia-class Block V hulls, spares and repairs. This contract includes options, which, if exercised, would bring the cumulative value of this contract to $97,860,000. Work will be performed in Nashua, New Hampshire (70%); and Syracuse, New York (30%), and is expected to be complete by June 2020. If all options are exercised, work will continue through June 2024. Fiscal 2019 shipbuilding and conversion (Navy) funding in the amount of $13,932,928 will be obligated at time of award and will not expire at the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with one offer received. The Naval Sea Systems Command, Washington Navy Yard, Washington, District of Columbia, is the contracting activity. AIR FORCE Accenture Federal Services LLC, Arlington, Virginia, has been awarded a $65,447,464 other transaction agreement for the execution of the enterprise information technology as a service compute and store risk reduction effort experiment. This agreement provides for an experiment for services to include providing a flexible and scalable hosting solution for applications and data, operation and maintenance of the compute and store environment, and application rationalization. Work will be performed in Buckley Air Force Base, Colorado; Maxwell AFB, Alabama; Offutt AFB, Nebraska; Joint Base Elemendorf-Richardson, Alaska; Cannon AFB, New Mexico; and Hurlburt Field, Florida, and is expected to be completed by June, 2020. Fiscal 2019 operations and maintenance funds in the amount of $28,517,000 are being obligated at the time of award. The Air Force Life Cycle Management Center, Hanscom AFB, Massachusetts, is the contracting activity (FA8726-19-9-0002). Harris Corp., Colorado Springs, Colorado, has been awarded an $18,084,893 cost-plus-fixed-fee contract modification (P00003) to previously awarded FA8819-19-C-0002 for the manufacturing of Air Force Satellite Control Network complaint L and S band antennas for the space combat range. Work will be performed at Colorado Springs, Colorado; and Kirtland Air Force Base, New Mexico, and is expected to be completed by June 19, 2021. Fiscal 2019 research, development, test and evaluation funds in the amount of $18,084,893 are being obligated at the time of award. The Air Force Space and Missile Systems Center, Los Angeles AFB, California, is the contracting activity. Northrop Grumman Innovation Systems, Fort Worth, Texas, has been awarded a $17,780,580 cost-plus-fixed fee with an embedded fixed-price and cost reimbursement contract to provide sustainment services for the Lebanese Air Force Armed Caravan Program. This contract provides field service representatives, repair and return, calibration, support equipment and spares. Work will be performed in Beirut, Lebanon, and is expected to be completed June 30, 2021, with the possibility of extending the completion date to June 30, 2024. This contract involves 100% foreign military sales to Lebanon. This award is the result of a sole source acquisition. Foreign Military Sales funds in the amount of $10,732,607 are being obligated at the time of the award. The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8620-19-C-3001). EaglePicher Technologies,* Joplin, Missouri, has been awarded a $14,125,999 cost-plus-fixed-fee contract action for an F-35 Agnostic Battery System. This contract provides for the acquisition of the manufacturing process improvement for the F-35 agnostic battery. Work will be performed in Joplin, Missouri, and is expected to be completed by June 17, 2022. This award is the result of a competitive Small Business Innovative Research action and one offer were received. Fiscal 2018 research and development funds in the amount of $7,248,000 are being obligated at the time of award. The Air Force Research Laboratory Contracting, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-19-C-5077). Joe Torres Co., Bakersfield, California, has been awarded a $9,080,374 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for integrated solid waste management services. This contract provides for collection and disposal of municipal solid waste, recycling and landfill services. Work will be performed in Edwards Air Force Base, California, and is expected to be completed by June 30, 2024. This award is the result of a competitive acquisition and two offers were received. Fiscal 2019 operations and maintenance funds in the amount of $439,615 are being obligated at the time of award. The Air Force Test Center, Edwards AFB, California, is the contracting activity (FA9301-19-D-A006). ARMY General Dynamics Mission Systems, Marion, Virginia, was awarded a $44,000,000 firm-fixed-price contract for Army Standard Family ISO Shelter, one-side expandable, two-side expandable, and modified extended rigid wall shelter. 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 21, 2024. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-19-D-0078). BIS Services LLC,* Kenner, Louisiana, was awarded a $32,305,200 firm-fixed-price contract for Calcasieu River and pass stone foreshore protection. Bids were solicited via the internet with three received. Work will be performed in Cameron Parish, Louisiana, with an estimated completion date of Dec. 12, 2020. Fiscal 2019 civil construction funds in the amount of $32,305,200 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-19-C-0051). BIS Services LLC,* Kenner, Louisiana, was awarded a $14,785,945 firm-fixed-price contract for Calcasieu River and pass stone foreshore protection, repairs and armoring. Bids were solicited via the internet with four received. Work will be performed in Cameron Parish, Louisiana, with an estimated completion date of Feb. 10, 2021. Fiscal 2019 operations and maintenance, civil funds in the amount of $14,785,945 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-19-C-0047). Huffman Construction LLC,* Poplar Bluff, Missouri, was awarded a $13,757,500 firm-fixed-price contract for Ohio River shoreline repair work for multiple pump stations and the construction of a new pump station. Bids were solicited via the internet with four received. Work will be performed in Paducah, Kentucky, with an estimated completion date of Jan. 6, 2022. Fiscal 2017 civil construction funds in the amount of $13,757,500 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-19-C-0050). Gilbane Federal, Concord, California, was awarded a $13,601,007 firm-fixed-price contract for repair to Moran Hall South (Bldg. 29802). Bids were solicited via the internet with three received. Work will be performed in Fort Gordon, Georgia, with an estimated completion date of Jan. 2, 2021. Fiscal 2019 operations and maintenance, Army funds in the amount of $13,601,007 were obligated at the time of the award. U.S. Army Corps of Engineers, Savannah, Georgia, is the contracting activity (W912HN-19-C-3007). Bhate Environmental Associates Inc.,* Birmingham, Alabama, was awarded an $11,382,741 firm-fixed-price contract for demolition services to plan and execute the removal of buildings and facilities to include the abatement and removal of asbestos containing materials and other regulated materials, disconnect and capping of utilities, complete removal of utilities, disposal of all debris materials and restoration. Nine bids were solicited with three bids received. Work will be performed in New Orleans, Louisiana, with an estimated completion date of Aug. 19, 2021. Fiscal 2019 NASA funds in the amount of $11,382,741 were obligated at the time of the award. U.S. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity (W912DY-19-F-0428). DEFENSE LOGISTICS AGENCY Sysco Seattle, Kent, Washington, has been awarded a maximum $21,000,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for full line food distribution for Navy ships customers in the Puget Sound/Seattle, Washington area. This was a sole-source acquisition in accordance with 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a 240-day bridge contract with no option periods. Location of performance is Washington, with a Feb. 15, 2020, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2019 defense working capital funds. The contracting agency is Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-19-D-3227). (Awarded June 20, 2019) Federal Prison Industries Inc.,** Washington, District of Columbia, has been awarded a maximum $17,232,000 firm-fixed-price, indefinite-quantity contract for Navy coveralls. This is a one-year base contract with four one-year option periods. Locations of performance are Atlanta, Georgia, Arizona, Mississippi, and District of Columbia, with a Nov. 30, 2020, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-F027). Sysco Seattle, Kent, Washington, has been awarded a maximum $14,300,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for full line food distribution for land based customers in Seattle, Washington, and surrounding areas. This was a sole-source acquisition in accordance with 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a 240-day bridge contract with no option periods. Location of performance is Washington, with a Feb. 15, 2020, performance completion date. Using customers are Army, Air Force, Marine Corps, Army National Guard, and federal civilian agencies. Type of appropriation is fiscal 2019 defense working capital funds. The contracting agency is Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-19-D-3226). (Awarded June 20, 2019) DEFENSE INFORMATION SYSTEMS AGENCY Iridium Satellite LLC, Tempe, Arizona, was awarded a non-competitive firm-fixed-price contract modification (P00012) for the extension of services on the current Airtime contract (HC104714C4000). The face value of this action is $8,579,000, funded by fiscal 2019 defense working capital funds. The total cumulative face value of the contract is $469,483,000. Performance will be at the contractor's facility. The original solicitation was issued on the basis of other than full and open competition pursuant to 10 U.S. Code 2304(c)(1). Only one responsible source and no other type of supplies or services would satisfy agency requirements. The period of performance is June 22, 2019, through July 21, 2019. The Defense Information Technology Contracting Organization, Scott Air Force Base, Illinois, is the contracting activity. (Awarded June 19, 2019) *Small business **Mandatory source https://dod.defense.gov/News/Contracts/Contract-View/Article/1884099/source/GovDelivery/

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  March 11, 2024 | International, Land

  Tech maturing too fast for multiyear drone buys, Army’s Bush says

  Locking in on the same drone year after year may not make sense amid rapidly changing circumstances, he said.