July 13, 2021 | International, Land
Companies with commercial experience want to show the Army how capable electric-powered vehicles can be and overcome the challenges of operating them on the battlefield.
October 18, 2023 | International, Aerospace
October 17, 2023 - Thales today announced that it has been awarded a contract by Korea’s Aerospace Industries (KAI) to equip FA-50 fighters for Poland with its highly successful Scorpion®...
August 4, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
By Aaron Gregg August 3, 2020 at 8:00 a.m. EDT A military equipment supplier that has been accused of fraudulently misrepresenting its size in order to benefit from privileges associated with being a small business has received a Paycheck Protection Program small business loan worth at least $2 million, public records show. Atlantic Diving Supply, a Virginia Beach, Va.-based reseller of specialized military gear, is the latest organization whose receipt of taxpayer-backed loans through the Paycheck Protection Program has raised questions about a program launched in early April to help sustain employment at small companies through the economic crisis. In late April, the Treasury Department retroactively clarified its rules after well-known restaurant chains, car dealerships and hotel companies reported receiving PPP loans. Several of them returned the loan funds following public uproar; others kept the money. The SBA has said it will audit all PPP loans above $2 million to determine whether the recipients were eligible. Representatives from the Small Business Administration and Atlantic Diving Supply did not comment on the company's receipt of SBA loans. The company's legal issues are detailed extensively in a report released Monday by the nonprofit Project on Government Oversight, known as POGO. A review of business data by POGO and the nonprofit Anti-Corruption Data Collective concluded that ADS was one of at least 27 PPP recipients estimated annual sales of more than $1 billion in 2019. Another 2,068 loan recipients cleared $100 million in sales last year, according to the analysis. Nick Schwellenbach, a senior investigator at POGO, questioned whether it's appropriate for ADS to receive small business coronavirus loans. Schwellenbach's investigation also found that two other firms allegedly tied to ADS ― including one that was named in a settlement with the Department of Justice ― separately received smaller PPP loans. “It's important that taxpayer funding reserved for genuine small businesses isn't siphoned off by companies that are not eligible,” Schwellenbach said. “As a top government contractor with revenues well over a billion dollars a year, it strains credibility that Atlantic Diving Supply is a real small business, especially given several recent settlements and law enforcement outcomes related to their alleged small business contracting fraud." Although it received a favorable ruling from the SBA as recently as November 2019, ADS's small business credentials have long been called into question. ADS started as a small, family-owned shop focused on the military diving community in Virginia Beach, which includes the Navy SEALs. It was transformed under the leadership of long-time chief executive Luke Hillier, winning its first major government contract in 2000. It grew quickly to meet an insatiable demand for military gear of all sorts in the years following 9/11. That fast growth became permanent business as the U.S. military presence in Iraq, Afghanistan and elsewhere dragged on for nearly two decades. At one point, ADS filed papers to go public, something that is usually the purview of large corporations. In 2015 it purchased Theodore Wille International, a military food and equipment supplier with offices in seven countries. Its business has remained healthy despite recent troop reductions. ADS received more than $3 billion in unclassified government contract dollars in 2019, procurement records show. That's more than some well-known, objectively large government contractors, including Bechtel, KBR and CACI. ADS has already cleared $1 billion in federal contract receipts in 2020 despite the economic crisis. As it has grown ADS's continued status as a small business status has been critical to its participation in the Defense Department's Tailored Logistics Support, or TLS program, a lucrative military supply line that is largely restricted to SBA-approved small and disadvantaged businesses. In recent years, ADS's official headcount has teetered close to the SBA's 500-employee limit for small-company designation, and the company has fought off repeated challenges to its size status. If ADS were declared “no longer small,” it would not only be ineligible for SBA coronavirus assistance, but would also be forbidden from competing on small business set-aside contracts that drive its business. In 2017, ADS settled federal allegations that it used a network of allegedly-affiliated companies to rig bids and fraudulently misrepresent its size. The Justice Department called the $16 million settlement “one of the largest recoveries involving alleged fraud in connection with small business contracting eligibility.” Hillier, who has moved on from the CEO role but remained the company's chairman as of July 20, according to a company filing, separately paid $20 million to settle federal allegations that he “violated the False Claims Act by fraudulently obtaining federal set-aside contracts reserved for small businesses that his company was ineligible to receive.” The settlements resulted from a Qui Tam lawsuit brought by whistleblowers. Two of the alleged affiliate businesses — Karda Systems and SEK Solutions — were named in a related case in which Ron Villanueva, a former state lawmaker from Virginia Beach, pleaded guilty to federal charges that he conspired to defraud the United States. Villanueva admitted that he and a friend pretended both companies were run by people who qualified for particular grants and drafted a misleading letter to the SBA that mischaracterized the degree to which one firm relied on other suppliers. ADS briefly lost its small business designation as a result of those allegations when a Defense Department contracting officer, concerned by ADS's settlement, requested a formal SBA review of the company's size status and its degree of affiliation with other companies named in the whistleblower lawsuit, according to documents obtained by The Washington Post. That SBA review determined that ADS was “other than small,” which temporarily blocked the company from bidding on set-aside contracts. But ADS successfully appealed that ruling, which was reversed because it relied on old financial records. Today the company continues to receive federal contracts designated for small firms. Because the settlements arrived at by ADS and Hillier did not include a determination of liability, the company has been allowed to keep benefiting from the SBA's various small business programs. Its most recent size determination, which found it to be a small business, was finalized in November 2019. https://www.washingtonpost.com/business/2020/08/03/defense-contractor-with-billions-sales-got-millions-pandemic-loans-intended-small-businesses
October 15, 2018 | International, Aerospace, Naval, Land, C4ISR, Security
DEFENSE INFORMATION SYSTEMS AGENCY Iridium Satellite LLC, Tempe, Arizona, was awarded a non-competitive, firm-fixed-price $44,000,000 contract modification (P00008) for the extension of services on the current airtime contract (HC104714C4000) in accordance with Federal Acquisition Regulation 52.217-8. Fiscal 2019 defense working capital funds will be used. Performance will be at the contractor's facility. The period of performance for the option period is Oct. 22, 2018, through April 21, 2019. The Defense Information Technology Contracting Organization, Scott AFB, Illinois, is the contracting activity. DEFENSE LOGISTICS AGENCY Creighton AB Inc., Reidsville, North Carolina, has been awarded a maximum $35,000,000 fixed-price contract for Air Force lightweight jackets. This was a competitive acquisition with two responses received. This is a one-year base contract with four one-year option periods. Maximum dollar amount is for the life of the contract. Locations of performance are New York and North Carolina, with an Oct. 11, 2023, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1104). Simmonds Precision Products Inc., Vergennes, Vermont, has been awarded an $11,024,500 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for electro-me actuators. This is a five-year base contract with four one-year option periods. This was a competitive acquisition with two responses received. Location of performance is Vermont, with an Oct. 15, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 Army working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Redstone Arsenal, Alabama (SPRRA1-19-D-0004). Transaero Inc., Melville, New York, has been awarded a $9,500,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for assembly clutches. This is a five-year base contract with four one-year options periods. This was a competitive acquisition with two responses received. Location of performance is New York, with a Nov. 30, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 Army working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Redstone Arsenal, Alabama (SPRRA1-19-D-0002). ARMY Medvolt LLC,* Colorado Springs, Colorado, was awarded a $19,978,985 firm-fixed-price contract for upgrading the chilled water line system at the Cheyenne Mountain Air Force Station. Bids were solicited via the internet with one received. Work will be performed in Cheyenne Mountain Air Force Station, Colorado, with an estimated completion date of Oct. 15, 2020. Fiscal 2019 operations and maintenance (Army) funds in the amount of $19,978,985 were obligated at the time of the award. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-19-C-0001). AIR FORCE Rockwell Collins, Richardson, Texas, has been awarded a $12,010,975 definitization (P000013) to previously undefinitized contract FA8204-18-C-0010 (P00005) to implement Security Classification Guide changes. Work will be performed at Richardson, Texas, and is expected to be completed by Dec. 3, 2020. Fiscal 2018, research, development, test and evaluation funds in the amount of $818,227 are being obligated at the time of award. Air Force Nuclear Weapon Center, Hill Air Force Base, Utah, is the contracting activity. NAVY Complete Parachute Solutions, Deland, Florida, is awarded a $9,270,000 modification under previously awarded firm-fixed-price contract (M00264-18-C-0007) for the Multi-Mission Parachute Course. The Multi-Mission Parachute Course provides training and technical support for all Military Free-Fall training to ensure compliance with all Federal Aviation Administration Regulations and Marine Corps Orders to safely meet the Marine Corps Training Input requirements. This contract includes four one-year option periods which, if exercised, could bring the cumulative value of this contract to $42,763,854. Work will be performed in Coolidge, Arizona, and is expected to be completed Sept. 27, 2019. If all options are exercised, work will continue through Sept. 27, 2022. Fiscal 2019 operations and maintenance (Marine Corps) funds in the amount of $9,270,000 will be obligated at the time of contract modification award and will expire at the end of the current fiscal year. The original contract was competitively solicited and competitively procured via solicitation on the Federal Business Opportunity website, with one proposal received. The Marine Corps Installation National Capital Region-Regional Contracting Office, Quantico, Virginia, is the contracting activity. FlightSafety Services Corp., Centennial, Colorado, is awarded an $8,354,866 modification (P00004) under a previously awarded firm-fixed-price contract (N6134018C0019) for aircrew training services in support of the TH-57B/C community, including instruction, operation, and curriculum support. Work will be performed at the Naval Air Station, Whiting Field, Florida, and is expected to be completed in October 2019. No funds are being obligated at time of award. The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity. Huntington Ingalls Inc., Newport News, Virginia, is awarded a $7,031,737 cost-plus-fixed-fee modification to previously awarded contract (N00024-17-C-2103) to exercise an option for the accomplishment of planning and design yard functions for standard Navy valves of nuclear-powered submarines and aircraft carriers. Work will be performed in Newport News, Virginia, and is expected to be completed by September 2019. Fiscal 2019 operations and maintenance (Navy) funding in the amount of $600,000 will be obligated at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1660999/source/GovDelivery/