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  • Pentagon budget request increases R&D funding, cuts legacy planes

    February 11, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Pentagon budget request increases R&D funding, cuts legacy planes

    By: Aaron Mehta WASHINGTON — U.S. President Donald Trump's defense budget request for fiscal 2021 includes major investments in research and development portfolios as well as “crucial” technologies as part of what the Pentagon is branding an “irreversible implementation” of the National Defense Strategy. However, the budget also features overall cuts to the Army and Navy top lines, as well as the divestment of legacy platforms from the Air Force. The president is requesting $705 billion for the Defense Department, including $69 billion in overseas contingency operations, or OCO, wartime funds. Total national security spending, including for the National Nuclear Security Administration and other outside agencies, is $740 billion, as set by a congressional budget agreement last year. Although not included in the budget documents, total top-line projections over the Future Years Defense Program, or FYDP, are $722 billion in FY22, $737 billion in FY23, $753 billion in FY24 and $768 billion in FY25, according to a senior defense official. Service budget top lines are $178 billion for the Army, a drop by $462 million from FY20 enacted levels; $207 billion for the Navy, down $1.9 billion from FY20; and $207 billion for the Air Force, up $1.7 billion from FY20. The budget also requests $113 billion for defensewide efforts, which includes the so-called fourth estate agencies, down $6.5 billion from FY20. Overall procurement funding sits at $136.9 billion. The OCO request of $69 billion is down dramatically from last year's $164 billion, and it comes in three flavors: $20.5 billion in “direct war requirements,” or funding for combat operations that will end at some point in locations like Iraq and Syria. $32.5 billion in “enduring requirements,” which covers funding for the sustainment of bases, as well as pots of money like the European Deterrence Initiative. $16 billion in “OCO for base,” a funding mechanism for money that could be in the base budget but is classified as OCO for the purpose of skirting budget caps imposed by Congress. Projection for OCO funding falls $20 billion in FY22 and FY23, and then to $10 billion for FY24 and FY25, as “certain OCO costs” are absorbed by the base budget, according to the White House's summary tables. There's no nondefense discretionary OCO proposed for FY21 or the out years. “This is a budget that makes difficult choices but they are actually choices that support the National Defense Strategy,” a senior defense official said on condition of anonymity ahead the budget rollout. “We can't have the best of everything in all areas,” the official added. “The low-hanging fruit is gone.” Among the tough choices: retiring 17 B-1 bombers, 44 A-10 planes, 24 Global Hawk drones, as well as 16 KC-10 and 13 KC-135 tankers from the Air Force. “When you look at these aircraft, they disproportionately take too much of the readiness account. That's where we've got to go,” the official said. “Those are really the tough choices we had to make. Because we can now take the additional manpower, the [spare parts], all those things we need to make those other aircraft more operationally available and have more flight hours available in the mission we need them to do.” Congress usually revises presidential budget submissions substantially before passing them into law. A prime target for lawmakers this year will be the Trump administration's favoritism for defense spending over nondefense, which contradicts the rough parity between two that's characterized bipartisan budget deals in recent years. Congress will also likely upend the administration's FY21 proposal to cut the nondefense base budget by 5.1 percent while adding 0.08 percent to the base defense budget. There are slim odds for Trump's proposal extending budget caps — set to expire next year — through 2025, wherein defense would increase by roughly 2 percent each year as nondefense discretionary decreases 2 percent each year. ‘Irreversible' Budget documents were branded with the phrase “irreversible implementation of the National Defense Strategy,” a notable signal in an election year that, should Trump not be reelected, could result in major changes to the national budget and American strategy come January. The branding in support of the NDS can be found throughout the document, even at lower levels. For instance, the Pentagon's security cooperation account has been rebranded the “NDS Implementation (NDS-I) account.” Missing from the budget request are funds for Trump's border wall with Mexico. However, CNN reported this weekend that “billions” of defense dollars will be going toward the wall effort, with an announcement expected later this week. Key defense spending accounts break down like this: Mission-support activities: $66.8 billion Aircraft and related systems: $56.9 billion Shipbuilding and maritime systems: $32.2 billion Missiles and munitions: $21.3 billion Space-based systems: $15.5 billion Ground systems: $13 billion C4I systems: $11.9 billion Missile defeat and defense programs: $11.6 billion The department is requesting $106.6 billion to fund research, development, test and evaluation (RDT&E) efforts, an increase of $2 billion over the FY20 enacted figures — something another senior defense official called the “largest [RDT&E] request in over 70 years.” Funding for that came from savings from the defensewide review, which found $5.7 billion in money to reprogram in FY21, as well as the retirement of older platforms. Four “crucial” technologies are now bunched together under a new acronym — ACE, which stands for advanced capability enablers: hypersonics at $3.2 billion, microelectronics/5G at $1.5 billion, autonomy at $1.7 billion, and artificial intelligence at $800 million. However, for the second straight year, science and technology funding for early technology development (the Pentagon's 6.1, 6.2 and 6.3 accounts) is requested at $14.1 billion; that includes $3.5 billion for the Defense Advanced Research Projects Agency. Congress plussed that funding to $16.1 billion in FY20 enacted levels, meaning the request here is $2 billion less than what the Pentagon received this current year. Cyber activates total $9.8 billion, including $5.4 billion for cybersecurity-focused projects. The rest of the funding goes toward supporting defensive cyber operations. https://www.defensenews.com/smr/federal-budget/2020/02/10/pentagon-budget-request-increases-rd-funding-cuts-legacy-planes/

  • Contract Awards by US Department of Defense - December 13, 2018

    December 14, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - December 13, 2018

    NAVY The Boeing Co., St. Louis, Missouri, is awarded a $92,361,661 not-to-exceed firm-fixed-price, cost-plus-fixed-fee contract for Phase 1 integrated logistics support for 22 F/A-18E and 6 F/A-18F Super Hornet aircraft in support of the government of Kuwait under the Foreign Military Sales program. Work will be performed in St. Louis, Missouri (85 percent); Fort Walton Beach, Florida (8 percent); New Orleans, Louisiana (5.5 percent); China Lake, California (.5 percent); Patuxent River, Maryland (.5 percent); and Gulf Port, Mississippi (.5 percent), and is expected to be completed in December 2020. Foreign Military Sales funds in the amount of $38,792,947 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to 10 U.S. Code. 2304(c)(1). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-19-C-0033). CRL Technologies Inc., Alexandria, Virginia, is awarded an $84,327,079 cost-plus-fixed-fee indefinite-delivery/indefinite-quantity contract for lead systems integrator contractor support services to perform engineering, technical and project management for a wide variety of new and existing programs and platforms in support of the Naval Air Warfare Center Aircraft Division's AIRWorks organization. Work will be performed in Lexington Park, Maryland, and is expected to be completed in December 2023. No funds will be obligated at time of award; funds will be obligated on individual orders as they are issued. This contract was competitively procured via an electronic request for proposals; five offers were received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-19-D-0026). Envisioneering Inc.,* Alexandria, Virginia (N00173-19-D-2002); R&M Technology Solutions LLC,* Fredericksburg, Virginia (N00173-19-D-2003); Technology Service Corp.,* Arlington, Virginia (N00173-19-D-2005); Remcom Inc.,* State College, Pennsylvania (N00173-19-D-2004); and Cutlass Systems Engineering LLC,* Laurel, Maryland (N00173-19-D-2001), are awarded indefinite-delivery/indefinite-quantity, multiple award contracts for Modeling, Analysis, Research, and Simulation (MARS). The cumulative face value on this multiple award contract is a combined $48,400,000. This action does not include options. Work will be performed at the Naval Research Laboratory, Washington, District of Columbia (90 percent); and depending on each task order, one of the following contractor's facility - Alexandria, Virginia; Fredericksburg, Virginia; Arlington, Virginia; State College, Pennsylvania; Laurel, Maryland (10 percent). This contract has a five-year ordering period and is expected to be completed Dec. 11, 2023. No funds will be obligated at the time of award. Funds will be obligated as task orders are issued. This contract is one of five contracts being competitively procured under a request for proposal #N00173-16-R-JH03 for which six proposals were received. The Naval Research Laboratory, Washington, District of Columbia, is the contracting activity. General Dynamics Mission Systems, Pittsfield, Massachusetts, is awarded $35,034,283 for modification P00001 to a previously awarded cost-plus-incentive-fee, cost-plus-fixed-fee contract (N00030-19-C-0003) for research and development, and sustainment efforts for the U.S. SSBN Fire Control Sub-system (FCS), the U.K FCS and the U.S. SSGN Attack Weapon Control System, including training and support equipment and U.S./UK Shipboard data system. Work will be performed in Pittsfield, Massachusetts (98 percent); Kings Bay, Georgia (1 percent); and Dahlgren, Virginia (1 percent), with an expected completion date of September 2019. Fiscal 2019 other procurement (Navy) funds in the amount of $23,665,513; fiscal 2019 operations and maintenance (Navy) funds in the amount of $5,666,207; fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $2,857,813, and U.K. funds in the amount of $2,844,750 are being obligated on this award. Funds in the amount of $5,666,207 will expire at the end of the current fiscal year. Strategic Systems Programs, Washington, District of Columbia, is the contracting activity. Jacobs Government Services Co., Fort Worth, Texas, is awarded a $25,000,000 firm-fixed-price modification to increase the maximum dollar value of a previously awarded indefinite-delivery/indefinite-quantity contract (N62742-17-D-0003) for Architect-Engineering (A-E) services for design, engineering, specification writing, cost estimating, and related services at various locations under the cognizance of Naval Facilities Engineering Command (NAVFAC) Pacific. The work to be performed provides for services that include, but are not limited to, design and engineering services for the preparation of plans; specifications utilizing NAVFAC SpecsIntact program: cost estimates utilizing the micro-computer aided cost estimating system; second generation cost estimating system: and other services such as design and engineering services for functional analysis and concept development, request for proposal (RFP) documentation for design-build projects, RFP documentation, and plans and specifications for design-bid-build projects. After award of this modification, the total cumulative contract value will be $55,000,000. Work will be performed predominantly in Tinian (54 percent); Guam (25 percent); Hawaii (19 percent); and Diego Garcia (1 percent); and other areas within the Naval Facilities Engineering Command (NAVFAC) Pacific area of responsibility (1 percent), and is expected to be completed by August 2022. No funds will be obligated at time of award; funds will be obligated on individual task orders as they are issued. Task orders will be primarily funded by customer reimbursable funds. The Naval Facilities Engineering Command, Pacific, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity. General Electric Aviation, Lynn, Massachusetts, is awarded $11,626,714 for cost-plus-fixed-fee delivery order N0042119F0231 against a previously issued basic ordering agreement (N0042119G0001). This order provides for engineering and engine system improvement in support of the F414 engine component improvement program. Work will be performed in Lynn, Massachusetts, and is expected to be completed in December 2019. Fiscal 2019 research, development, test and evaluation; and fiscal 2019 aircraft procurement (Navy) funds in the amount of $10,817,305 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. EDO LLC, Amityville, New York, is awarded $8,661,189 for modification P00010 to a previously awarded cost-plus-fixed-fee, firm-fixed-price, cost reimbursable contract (N00019-17-C-0029). This modification provides for the procurement of 77 BRU-55A/A aircraft bomb ejector racks for the F/A-18A/B/C/D/E/F aircraft. Work will be performed in Amityville, New York, and is expected to be completed in June 2021. Fiscal 2019 aircraft procurement (Navy) funds in the amount of $8,661,189 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity. ARMY DRS Sustainment Systems Inc., St. Louis, Missouri, was awarded a $48,741,559 cost-plus-fixed-fee contract for technical support services. One bid was solicited with one bid received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 12, 2023. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-19-D-0006). Lockheed Martin Corp., Orlando, Florida, was awarded a $40,372,494 cost-plus-fixed-fee contract for analysis, design, development, integration, test, help desk, product improvements, fielding, software development, and exercise support. One bid was solicited with one bid received. Work will be performed in Orlando, Florida, with an estimated completion date of Dec. 12, 2020. Fiscal 2018 and 2019 research, development, test and evaluation; operations and maintenance Army; and other procurement, Army funds in the combined amount of $31,199,618 were obligated at the time of the award. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-19-C-0012). General Atomics Aeronautical, Poway, California, was awarded a $40,000,000 modification (P00029) to contract W58RGZ-17-C-0035 for services on the Gray Eagle unmanned aircraft system. Work will be performed in Poway, California, with an estimated completion date of June 15, 2019. Fiscal 2019 operations and maintenance Army funds in the amount of $25,000,000 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. The RAND Corp., Santa Monica, California, was awarded a $21,898,593 cost-plus-fixed-fee contract for research and analytic projects. One bid was solicited with one bid received. Work will be performed in Santa Monica, California, with an estimated completion date of Sept. 30, 2020. Fiscal 2019 research, development, test and evaluation funds in the amount of $18,974,861 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W91CRB-19-F-0038). AIR FORCE The Boeing Co., Fort Walton Beach, Florida, has been awarded an $11,746,605, cost-plus-fixed-fee modification (P00014) to exercise Option Three of contract FA8509-16-C-0001 for the integrated sustainment support of the AC‐130U gunships. This modification provides for the continuation of services for the development, modification, sustainment, and maintenance of the AC‐130U gunship. Work will be performed at Fort Walton Beach, Florida, and deployed locations in Afghanistan and Kuwait, and is expected to be completed by Dec. 31, 2019 for the negotiated option. This award is the result of a sole-source acquisition and is incrementally funded. Fiscal 2019 operations and maintenance funds in the amount of $6,000,000 are being obligated at the time of award. Total cumulative face value of the contract modification is $11,746,605. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity. DEFENSE FINANCE AND ACCOUNTING SERVICES Kearney & Company PC, Alexandria, Virginia, is being awarded a labor-hour contract option with a maximum value of $8,799,484 for audit services of the Marine Corps General Fund financial statements. Work will be performed in Alexandria, Virginia, with an expected completion date of Dec 31, 2019. This contract is the result of a competitive acquisition for which four quotes were received. The contract had a 15-month base period plus three individual one-year option periods, with a maximum value of $38,372,103. This award brings the total cumulative value of the contract to $29,328,747. Fiscal 2019 operations and maintenance, Navy funds in the amount of $8,799,484 are being obligated at the time of this option award. The Defense Finance and Accounting Service, Contract Services Directorate, Columbus, Ohio, is the contracting activity (HQ0423-16-F-0114). DEFENSE LOGISTICS AGENCY UPDATE: Kipper Tool Co., Gainesville, Georgia (SPE8EC-19-D-0035), has been added as an awardee to the multiple-award contract for commercial construction equipment, issued against solicitation SPE8EC-17-R-0005 announced April 5, 2017. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1713264/

  • Australian defense leaders defend submarine buy with France’s Naval Group

    January 21, 2020 | International, Naval

    Australian defense leaders defend submarine buy with France’s Naval Group

    By: Nigel Pittaway MELBOURNE, Australia – Australian defense leaders this week denied claims that their department was urged to consider alternatives to the navy's plans of buying 12 large conventionally-powered submarines from France's Naval Group. The claims, reported by local news media in the wake of an Australian National Audit Office (ANAO) report about the program earlier this week, suggested negotiations with Naval Group were at such a poor state the Commonwealth-appointed Naval Shipbuilding Advisory Board had earlier recommended drawing up contingency plans. However, in a statement released Wednesday by Secretary of Defence Greg Moriarty, Chief of Defence Force Gen. Angus Campbell, Chief of Navy Vice Admiral Mike Noonan and Deputy Secretary Naval Shipbuilding, Tony Dalton, denied the claims. “Contrary to media interpretations of ANAO's latest report on the Future Submarine Program, Defence was not advised to ‘walk away' from Naval Group by the Naval Shipbuilding Advisory Board,” the statement read. “In line with best practice and following the advice of the Advisory Board, Defence has continued to assess all of the risks that attend this highly complex program. At each stage, we are adopting relevant risk mitigation strategies. The ANAO acknowledges that Defence has taken steps to manage risks.” The 12 Attack-class submarines are being acquired under Australia's Sea 1000 (Future Submarine) program to replace six existing Collins-class boats which, without a major service life extension program, will need to be retired by 2036. The design is based on the French Barracuda-class nuclear attack boat, and the program is valued at either $34.5 billion (50 billion Australian dollars), or $55.2 billion (AUD 80 billion), depending on accounting practices. Either way, it is Australia's largest-ever defense acquisition program. The ANAO report, titled “Transition to Design,” found that the design phase of the program is already nine months behind schedule and two important milestones had been missed. It said Defence “could not demonstrate” its expenditure of $396 million (US $273 million) on the design to date has been fully effective in achieving the two milestones to date. The Defence Department has spent 47 percent of all program expenditure thus far on design work and, despite the risk mitigation strategies, it continues to describe program risk as “high”. “While the first scheduled major milestone under the Submarine Design Contract was reached five weeks later than planned, Defence and Naval Group are working towards the recovery of this delay by the next contracted major milestone in January 2021. Importantly, the delivery of the Attack-class submarine has not been delayed,” the statement continued. “Acknowledging the scale of this program, we remain confident that our work on the Attack-class program with Naval Group and Lockheed Martin Australia (as the Combat Systems Integrator) is progressing thoroughly and will result in the delivery of a regionally-superior submarine from the early 2030s, establishing a truly sovereign capability as we maximize the involvement of Australian industry.” The Sea 1000 program timeline calls for delivery of the first Attack-class boat in 2032 with service entry around 2034. https://www.defensenews.com/2020/01/17/australian-defense-leaders-defend-submarine-buy-with-frances-naval-group

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