February 28, 2024 | International, Aerospace
July 22, 2020 | International, Aerospace
Lockheed Martin May Go Shopping if Defense Budgets Fall Next Year
July 21, 2020 | By John A. Tirpak
If defense spending goes down in the coming year—expected because of large COVID-19 bailout packages—it could be an opportunity for Lockheed Martin, company President and Chief Executive Officer James D. Taiclet said July 21.
In a second-quarter results call with investors and financial reporters, Taiclet—in his first such call after succeeding Marillyn A. Hewson in the job—said the company isn't betting on defense budgets to go up or down. But Lockheed is sitting on so much cash—nearly $8 billion—it could go shopping for other companies in distress if budgets fall, he said.
“If there is a downturn, we're going to look for silver linings that may be there,” Taiclet said. Given the company's strong backlog and balance sheet, “there could be opportunities for us to act in a period where asset prices are depressed, for things we may want to bring into the company.” Acquisition targets “we really wanted ... might be even more available at attractive prices.” He did not discuss large possible acquisition interests, and only broadly mentioned looking at small companies able to build Lockheed's vertical integration in some technology areas.
Taiclet declined to speculate on whether budgets will rise or fall. “We're just getting the company ready for either scenario, frankly,” he said. “If it's stable or slightly rising, ... we know how to handle that. But if it's declining, we're planning for that, too.”
In case of a downturn, he's asked business area managers to do “a ‘Red Team' kind of exercise ... We would offer our customers ... ‘this is what we think you should do with our products and programs for extending'” the life of existing platforms.
With a $150 billion backlog in hand, though—a new company “high water mark,” Taiclet said—“it's going to be two to three years” before any defense budget cuts “actually go into the defense industrial base production lines, so we have time to work with the customer ... They can have their contingency plan and we're behind them 100 percent.”
Taiclet said international customers may also see budget declines, but doesn't expect Lockheed to be hit hard by that. While some requests for proposals are “moving to the right,” the planned in-service dates of prospective customers are not, he noted.
Taiclet and Kenneth R. Possenriede, vice president and chief financial officer, said the company expects 90 total new F-16 orders from Taiwan and another country; C-130s for Indonesia; Aegis systems for Japan; and MH-60R helicopters for India, as well as increasing orders for missile defense systems.
They also said the chief competitors to the U.S. are spending lavishly on defense systems and the threat is not diminishing, despite COVID. China is “aggressive and ... aspirational,” Taiclet said, while Russia is “back in the game,” making strategic investments in long-range systems to make up for its diminished ground forces.
Production of the F-35, Lockheed's marquee aeronautics program, will likely be 40 percent for foreign users in the coming years, Possenriede said. Of the aeronautics division's $9 billion in orders, $7 billion is accounted for by the F-35, with a backlog of 411 airplanes.
Taiclet noted that Lockhed has hired 9,000 new employees since the COVID-19 pandemic began, and is seeking to hire 3,000 more in this calendar year.
https://www.airforcemag.com/lockheed-martin-may-go-shopping-if-defense-budgets-fall-next-year
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July 9, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence
Contract Awards by US Department of Defense - July 8, 2019
DEFENSE INFORMATION SYSTEMS AGENCY Affinity Innovations LLC,* Hanover, Maryland (HC1047-19-D-2020); Applied Systems Engineering Joint Venture LLC,* Annapolis Junction, Maryland (HC1047-19-D-2021); A Square Group LLC,* Rockville, Maryland (HC1047-19-D-2022); Business Computers Management Consulting Group LLC,* Falls Church, Virginia (HC1047-19-D-2023); Bluestone Logic LLC,* Washington, District of Columbia (HC1047-19-D-2024); Credence Management Solutions LLC,* Vienna, Virginia (HC1047-19-D-2025); DHPC Technologies Inc.,* Woodbridge, New Jersey (HC1047-19-D-2026); InCadence Strategic Solutions Corp.,* Manassas, Virginia (HC1047-19-D-2027); INNOPLEX LLC,* Columbia, Maryland (HC1047-19-D-2028); Innovation Evolution Technologies JV LLC,* Reston, Virginia (HC1047-19-D-2029); Innovative Government Solutions JV LLC,* Virginia Beach, Virginia (HC1047-19-D-2030); Integrated Systems Inc.,* Tysons Corner, Virginia (HC1047-19-D-2031); Interactive Process Technology LLC,* Billerica, Massachusetts (HC1047-19-D-2032); Mission Support LP,* McLean, Virginia (HC1047-19-D-2033); NetCentric Technologies Inc.,* Wall, New Jersey (HC1047-19-D-2034); Riverside Engineering LLC,* Vienna, Virginia (HC1047-19-D-2035); Semper AASKI Alliance Inc.,* Canyon Lake, Texas (HC1047-19-D-2036); Superlative Technologies Inc.,* Ashburn, Virginia (HC1047-19-D-2037); Synergy Business Innovation & Solutions Inc.,* Arlington, Virginia (HC1047-19-D-2038); TekSynap Corp.,* Reston, Virginia (HC1047-19-D-2039); Tiber Creek Consulting Inc.,* Fairfax, Virginia (HC1047-19-D-2040); ValidaTek Inc.,* Arlington, Virginia (HC1047-19-D-2041); and VOLANT Associates LLC,* Chantilly, Virginia (HC1047-19-D-2042), were each awarded an indefinite-delivery/indefinite-quantity (ID/IQ) contract for Systems Engineering, Technology and Innovation (SETI). This was a competitive solicitation for a multiple-award ID/IQ contract. Two pools were solicited, one unrestricted and one restricted for small businesses. These awards are for the restricted pool. The contracts in the unrestricted pool were awarded on June 14, 2018. The face value of the entire ID/IQ is a ceiling amount of $7,500,000,000. Awardees will each receive a minimum guarantee of $500 applicable to the base ordering period only. All other funding will be obligated at the task order level. Performance locations will be identified at the task order level and may be worldwide. Proposals were solicited via the Federal Business Opportunities website and 99 proposals were received for the restricted pool. The period of performance is a five-year base period with one five-year option period. The Defense Information Technology Contracting Organization, National Capital Region, is the contracting activity. NAVY Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded $41,269,021 for modification P00002 to a previously awarded order (N00019-19-F-2474) placed against basic ordering agreement N00019-14-G-0020. This modification exercises an option for the design, procurement and integration of flight test instrumentation and data processing solutions for F-35 Lightning II development test aircraft to support the Tech Refresh-3 and the Follow on Modernization Block 4 mission systems configuration. Work will be performed in Fort Worth, Texas, and is expected to be completed in February 2021. Fiscal 2019 research, development, test and evaluation (Air Force) and non-U.S. Department of Defense (DoD) participant funds in the amount of $2,470,993 are being obligated at time of award, none of which will expire at the end of the current fiscal year. This modification combines purchases for the Air Force ($16,501,005; 40%); Navy ($8,250,503; 20%); Marine Corps ($8,250,503; 20%); and non-U.S. DoD participants ($8,267,010; 20%). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Deloitte Consulting LLP, Arlington, Virginia, is awarded a $21,656,574 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee contract for execution of sustainment and technical support for special projects and electronic systems for experimental, demonstration and developmental technology for the Navy, Department of Homeland Security, Customs and Border Protection and other government agencies. This is one of four multiple-award contracts. All awardees will have the opportunity to compete for task orders during the ordering period. This three-year contract includes two two-year option periods, which, if exercised, would bring the cumulative value of this contract to an estimated $52,659,079. Work will be performed in San Diego, California, and work is expected to be completed July 7, 2022. If all options are exercised, the period of performance would extend through July 7, 2026. No funds will be obligated at the time of award. Funds will be obligated as task orders and are issued using research, development, test and evaluation (Navy); operations and maintenance (Navy); other procurement (Navy); and Department of Homeland Security. This contract was competitively procured via Request for Proposal N66001-18-R-0110, which was published on the Federal Business Opportunities website and the Naval Information Warfare Systems Command e-Commerce Central website. Four offers were received and four were selected for award. Naval Information Warfare Center Pacific, San Diego, California, is the contracting activity (N66001-19-D-0111). Serco Inc., Herndon, Virginia, is awarded an $18,163,831 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee contract for execution of sustainment and technical support for special projects and electronic systems for experimental, demonstration and developmental technology for the U.S. Navy, Department of Homeland Security, Customs and Border Protection and other government agencies. This is one of four multiple-award contracts. All awardees will have the opportunity to compete for task orders during the ordering period. This three-year contract includes two two-year option periods, which, if exercised, would bring the cumulative value of this contract to an estimated $44,421,226. Work will be performed in San Diego, California, and work is expected to be completed July 7, 2022. If all options are exercised, the period of performance would extend through July 7, 2026. No funds will be obligated at the time of award. Funds will be obligated as task orders and are issued using research, development, test and evaluation (Navy); operations and maintenance (Navy); other procurement (Navy); and Department of Homeland Security. This contract was competitively procured via Request for Proposal N66001-18-R-0110, which was published on the Federal Business Opportunities website and the Naval Information Warfare Systems Command e-Commerce Central website. Four offers were received and four were selected for award. Naval Information Warfare Center Pacific, San Diego, California, is the contracting activity (N66001-19-D-0113). McKean Defense Group LLC, Philadelphia, Pennsylvania, is awarded a $17,594,138 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee contract for execution of sustainment and technical support for special projects and electronic systems for experimental, demonstration and developmental technology for the Navy, Department of Homeland Security, Customs and Border Protection and other government agencies. This is one of four multiple-award contracts. All awardees will have the opportunity to compete for task orders during the ordering period. This three-year contract includes two two-year option periods, which, if exercised, would bring the cumulative value of this contract to an estimated $42,574,062. Work will be performed in San Diego, California, and work is expected to be completed July 7, 2022. If all options are exercised, the period of performance would extend through July 7, 2026. No funds will be obligated at the time of award. Funds will be obligated as task orders and are issued using research, development, test and evaluation (Navy); operations and maintenance (Navy); other procurement (Navy); and Department of Homeland Security. This contract was competitively procured via Request for Proposal N66001-18-R-0110, which was published on the Federal Business Opportunities website and the Naval Information Warfare Systems Command e-Commerce Central website. Four offers were received and four were selected for award. Naval Information Warfare Center Pacific, San Diego, California, is the contracting activity (N66001-19-D-0112). Alutiiq Information Management LLC, Kodiak, Alaska, is awarded a $15,292,491 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee contract for execution of sustainment and technical support for special projects and electronic systems for experimental, demonstration and developmental technology for the Navy, Department of Homeland Security, Customs and Border Protection and other government agencies. This is one of four multiple-award contracts. All awardees will have the opportunity to compete for task orders during the ordering period. This three-year contract includes two two-year option periods, which, if exercised, would bring the cumulative value of this contract to an estimated $36,742,366. Work will be performed in San Diego, California, and work is expected to be completed July 7, 2022. If all options are exercised, the period of performance would extend through July 7, 2026. No funds will be obligated at the time of award. Funds will be obligated as task orders are issued using research, development, test and evaluation (Navy); operations and maintenance (Navy); other procurement (Navy); and Department of Homeland Security. This contract was competitively procured via Request for Proposal N66001-18-R-0110, which was published on the Federal Business Opportunities website and the Naval Information Warfare Systems Command e-Commerce Central website. Four offers were received and four were selected for award. Naval Information Warfare Center Pacific, San Diego, California, is the contracting activity (N66001-19-D-0110). ARMY The Boeing Co., Mesa, Arizona, was awarded a $21,567,229 modification (P00004) to foreign military sales (United Kingdom) contract W58RGZ-17-D-0052 for engineering services. Work locations and funding will be determined with each order, with an estimated completion date of Aug. 2, 2022. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Princeton Hydro LLC,* Ringoes, New Jersey, was awarded a $9,900,000 firm-fixed-price contract for architect-engineering services for navigation and flood damage projects. 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 July 7, 2024. U.S. Army Corps of Engineers, New York, New York, is the contracting activity (W912DS-19-D-0003). DEFENSE LOGISTICS AGENCY Parker Hannifin Corp., Irvine, California, has been awarded a maximum $13,828,991 firm-fixed-price delivery order (SPRPA1-19-F-KP2V) against a five-year basic ordering agreement (SPE4A1-17-G-0011) for F/A-18 spare parts. 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 47-month contract with no option periods. Location of performance is California, with a June 30, 2023 performance completion date. Using military service is Navy. Type of appropriation is fiscal 2019 through 2023 Navy aircraft procurement funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. UPDATE: Easy Street JD&S LLC, Carol Stream, Illinois (SPE8EC-19-D-0041), has been added as an awardee to the multiple award contract issued against solicitation SPE8EC-17-R-0002 announced Nov. 8, 2016. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1898178/source/GovDelivery/
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February 14, 2023 | International, Aerospace, Naval, C4ISR
Northrop links drones, ships in demonstration of connected Navy fleet
To stay ahead of China and Russia, the U.S. military is attempting to dissolve the walls between the services, their databases and their weapons.