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January 28, 2021 | International, Aerospace

Lockheed Overtakes Boeing as Largest US Aerospace and Defense Firm

Boeing, which saw no defense revenue growth last year, takes another financial hit from the tanker program.

Boeing ceded its long-held top spot as America's largest aerospace and defense firms to Lockheed Martin after reporting financial results from an abysmal 2020 on Wednesday.

The Chicago-based company also said it would lose another $275 million building Air Force KC-46 tankers because of “program primarily due to production inefficiencies including impacts of COVID-19 disruption.” The company has lost more than $4 billion on the project.

The company closed 2020 — a year that saw the collapse of passenger air travel from the coronavirus pandemic and the return to flight of the 737 Max airliner — with just under $58.2 billion in revenue, down 24 percent from the previous year.

While Lockheed — which on Tuesday reported $65.4 billion in 2020 sales — has long been the world's largest defense contractor, revenue from Boeing's commercial airplane business has combined with its military work to keep it atop the defense-and-aerospace category for decades.

Boeing's defense and space sales were flat year-over-year at just shy of $26.3 billion. Its services business, which includes defense work, made $15.5 billion, down 16 percent as thousands of aircraft remain grounded due to the pandemic.

“Overall, the government services and defense and space businesses remain significant and relatively stable and we continue to see solid global demand for our major programs,” CEO David Calhoun said on the company's quarterly earnings call Wednesday. “Nevertheless, the scale of government spending on COVID-19 response has the potential to add pressure to global defense spending in the years ahead.”

U.S. defense spending is expected to flatten or decline in coming years as the Biden administration and a Democrat-controlled Congress focus more on domestic issues.

Calhoun said the company expects its defense business to grow in the “lower end of the single digits” in coming years.

“It's hard to commit to a big uptick in any way on growth rates anytime soon, in light of what I think are the pressures,” he said.

Calhoun, who became CEO of the firm one year ago this month, said the coronavirus would continue to delay international defense contracts.

“The order activity in those international markets has pushed to the right, somewhat of an almost entirely because of COVID-related stuff, not because of any competitive issue one way or the other,” he said.

Like many of his colleagues in recent years, Calhoun touted Boeing's classified military work as being “incredibly encouraging and incredibly important to us.”

Despite the continued problems with the KC-46, the Air Force has purchased 94 of a planned 179 aircraft. Just this month, it placed two orders totaling $3.8 billion for 27 aircraft.

The FAA last month cleared the 737 Max for passenger flights in the United States. Some airlines have already resumed flights across North and South America. European regulators on Wednesday said the plane can resume flights across the continent.

Boeing also disclosed Wednesday that it would not deliver its first 777X, a larger, more efficient version of the popular 777 jetliner, until late 2023.

https://www.defenseone.com/business/2021/01/lockheed-overtakes-boeing-largest-us-aerospace-and-defense-firm/171684/

On the same subject

  • Contract Awards by US Department of Defense - December 04, 2020

    December 7, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - December 04, 2020

    NAVY DRS Laurel Technologies Inc., Johnstown, Pennsylvania (N63394-21-D-0001); and VT Milcom Inc., Virginia Beach, Virginia (N63394-20-D-0002), are each awarded a cost-plus-fixed-fee and firm-fixed-price, indefinite-delivery/indefinite-quantity multiple award contract to sustain the Technical Insertion 2016 equipment. The maximum dollar value for both contracts combined is $211,588,719. DRS Laurel Technologies Inc. is awarded a maximum value contract of $211,588,719. VT Milcom Inc. is awarded a maximum value contract of $188,428,823. This contract will provide for the manufacture, assembly, and testing of Technical Insertion 2016 equipment spares; associated engineering services, procurement, and harvesting; and installation of ordinance alteration kits and related products. Work will be performed in Dahlgren, Virginia (10%); Norfolk, Virginia (10%); Pascagoula, Mississippi (10%); Port Hueneme, California (10%); San Diego, California (10%); Virginia Beach, Virginia (10%); Wallops Island, Virginia (10%); Everett, Washington (5%); Honolulu, Hawaii (5%); Kauai, Hawaii (5%); Mayport, Florida (5%); Moorestown, New Jersey (5%); and Yokosuka, Japan (5%), and is expected to be completed by December 2025. Fiscal 2021 operation and maintenance (Navy) funds in the amount of $10,000 ($5,000 per contract) will be obligated at time of award to satisfy the minimum guarantee and will expire at the end of the current fiscal year. All other funding will be made available at the order level as contracting actions occur. This contract was competitively procured via beta.sam.gov with two offers received. The Naval Surface Warfare Center Port Hueneme Division, Port Hueneme, California, is the contracting activity. Southeastern Computer Consultants Inc., King George, Virginia, is awarded a $42,989,767 cost-plus-fixed-fee level of effort task order which shall provide Tactical Tomahawk Weapon Control System (TTWCS) Integrated Logistics Support (ILS) products and services in support of Training Support Activity responsibilities at Naval Surface Warfare Center, Port Hueneme Division. This is a single award, five-year, cost-plus-fixed-fee term level of effort task order that consists of one base year with four option years, which, if all line item quantities are ordered, would bring the cumulative value of this contract to $42,989,767, with an ordering period through December 2025. Work will be performed in Norfolk, Virginia (26%); Dahlgren, Virginia (21%); Port Hueneme, California (11%); San Diego, California (8%); Norfolk, Virginia (8%); Mayport, Florida (6%); Bangor, Washington (6%); Kings Bay, Georgia (4%); Pearl Harbor, Hawaii (4%); Yokosuka, Japan (4%); and the United Kingdom (2%), and is expected to be complete in December 2021, and if all options are exercised, will be complete in December 2025. Fiscal 2021 operation and maintenance funding in the amount of $42,989,767 will be obligated at contract award and will expire at the end of the current fiscal year. A sources sought notice was posted to Seaport-NxG on Oct. 2, 2020, and closed on Feb. 24, 2020, to all large and small business primes in Seaport-NxG. In accordance with Federal Acquisition Regulation (FAR) 5.202 (a)(6), a synopsis is not required if the proposed contract action is an order placed under FAR 16.505, Ordering. The Naval Surface Warfare Center, Port Hueneme Division, Port Hueneme, California, is the contracting activity (N63394-20-F-3006). Lockheed Martin Space, Titusville, Florida, is awarded a $29,120,167 cost-plus-fixed-fee modification (P00003) to procure a pilot assessment of the contractor's property management system and exercise options under previously awarded contract N00030-20-C-0100 for Trident II (D5) missile production and deployed systems support. The modification includes a $5,000,000 not-to-exceed value for the pilot assessment, which is being awarded as an undefinitized contract action. Work will be performed in Denver, Colorado (28.9%); Magna, Utah (23.3%); Titusville, Florida (18.7%); Rockford, Illinois (16.3%); Elma, New York (11.2%); and Sunnyvale, California (1.6%). Work is expected to be completed Sept. 30, 2025. Fiscal 2021 weapons procurement (Navy) funds in the amount of $15,039,964; fiscal 2020 weapons procurement (Navy) funds in the amount of $9,080,203; and fiscal 2021 operation and maintenance (Navy) funds in the amount of $2,500,000 are being obligated on this award, $2,500,000 of which will expire at the end of the current fiscal year. This contract is being awarded to the contractor on a sole-source basis under 10 U.S. Code 2304(c)(1) and was previously synopsized on the Federal Business Opportunities website. The Strategic Systems Programs, Washington, D.C., is the contracting activity. The Boeing Co., St. Louis, Missouri, is awarded a $20,704,459 firm-fixed-price order (N61340-21-F-0020) against previously issued basic ordering agreement N00019-16-G-0001. This order provides for the production and delivery of 48 retrofit kits, support equipment and special tooling in support of phase two of the T-45 Service Life Extension Program (SLEP) for SLEP production Lots Three and Four. In addition, this order provides retrofit engineering and logistics from the original equipment manufacturer to support the installation of associated technical directives. Work will be performed in St. Louis, Missouri, and is expected to be completed in May 2024. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $10,259,695; and fiscal 2021 aircraft procurement (Navy) funds in the amount of $10,444,764 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, Training Systems Command, Orlando, Florida, is the contracting activity. ARMY Dobco Inc., Wayne, New Jersey, was awarded a $137,836,600 firm-fixed-price contract for construction of the Cyber Engineering Academic Center structure and parking lot at the U.S. Military Academy. Bids were solicited via the internet with four received. Work will be performed in West Point, New York, with an estimated completion date of Dec. 4, 2024. Fiscal 2021 military construction (Army) funds in the amount of $137,836,600 were obligated at the time of the award. The U.S. Army Corps of Engineers, New York, New York, is the contracting activity (W912DS-20-C-0002). Vectrus Mission Solutions Corp., Alexandria, Virginia, was awarded a $35,510,370 cost-plus-fixed-fee contract for logistics support services at Fort Benning, Georgia. Bids were solicited via the internet with nine received. Work will be performed in Chattahoochee, Georgia, with an estimated completion date of Dec. 9, 2025. Fiscal 2021 operation and maintenance (Army) funds in the amount of $2,077,440 were obligated at the time of the award. The U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-21-F-0035). VS2 LLC, Alexandria, Virginia, was awarded a $9,513,800 modification (0001BG) to contract W52P1J-13-G-0029 for logistics support services at Fort Benning, Georgia. Work will be performed in Chattahoochee, Georgia, with an estimated completion date of March 9, 2021. Fiscal 2021 operation and maintenance (Army) funds in the amount of $9,513,800 were obligated at the time of the award. The U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. Butt Construction Co. Inc.,* Dayton, Ohio, was awarded a $9,061,000 fixed-price-award-fee contract for renovation of Human Performance Wing Building 441 at Wright Patterson Air Force Base. Bids were solicited via the internet with seven received. Work will be performed at Wright Patterson AFB, Ohio, with an estimated completion date of April 3, 2023. Fiscal 2021 operation and maintenance (Air Force) funds in the amount of $9,061,000 were obligated at the time of the award. The U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-21-C-0004). DEFENSE LOGISTICS AGENCY Bell Textron Inc., Fort Worth, Texas, has been awarded a maximum $39,093,369 modification (P00030) to five-year contract SPE4AX-17-D-9410 with one five-year option period for H-1 consumables. This is a firm-fixed-price contract. Location of performance is Texas, with an April 14, 2023 performance completion date. Using military service is Navy. Type of appropriation is fiscal 2020 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. Guardian Manufacturing LLC,** Willard, Ohio, has been awarded a maximum $9,315,618 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for butyl chemical protective gloves and toxicological agent protective gloves. This was a competitive acquisition with one offer received. This is a one-year base contract with one one-year option period. Location of performance is Ohio, with a Dec. 4, 2021, ordering period end date. Using military services are Army, Air Force and Navy. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-21-D-1416). UPDATE: SupplyCore Inc., Rockford, Illinois (SPE8EC-21-D-0075), has been added as an awardee to the multiple award contract for commercial construction equipment, issued against solicitation SPE8EC-17-R-0005 and announced Aug. 29, 2017. AIR FORCE M1 Support Services, Denton, Texas, has been awarded a $23,459,155 firm-fixed-price modification (P00070) to contract FA4890-16-C-0005 for the back-shop and flight-line maintenance of multiple aircraft types. Work will be performed at Nellis Air Force Base, Nevada, and is expected to be completed March 31, 2021. Fiscal 2021 operation and maintenance funds in the full amount are being obligated at the time of award. The Acquisition Management and Integration Center, Langley-Eustis Air Force Base, Virginia, is the contracting activity. BlueForce Inc., Hampton, Virginia, has been awarded a $14,179,677 firm-fixed-price Option Two modification (P00004) to contract FA3002-19-F-A045 for continued support for the Royal Saudi Air Force English language training outside the continental U.S. program. Work will be performed at King Abdul Aziz Air Base, Saudi Arabia, and is expected to be completed Jan. 3, 2024. This contract involves 100% Foreign Military Sales (FMS) to the Kingdom of Saudi Arabia. The total cumulative face value of the contract is $42,188,737. FMS funds in the full amount are being obligated at the time of award. The 338th Enterprise Sourcing Squadron, Joint Base San Antonio, Randolph, Texas, is the contracting activity. Apogee Engineering LLC, Colorado Springs, Colorado, has been awarded a $12,870,921 cost-plus-fixed-fee modification (P00001) to contract FA8730-21-F-8501 for advisory assistance services. Work will be performed at Offutt Air Force Base, Nebraska, and is expected to be completed Feb. 17, 2022. Fiscal 2020 research, development, test and evaluation funds in the amount of $985,000 are being obligated at the time of award. The Air Force Life Cycle Management Center, Offutt AFB, Nebraska, is the contracting activity. *Small business **Small disadvantage business in historically underutilized business zones https://www.defense.gov/Newsroom/Contracts/Contract/Article/2436087/source/GovDelivery/

  • Contract Awards by US Department of Defense - June 3, 2019

    June 4, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

    Contract Awards by US Department of Defense - June 3, 2019

    DEFENSE LOGISTICS AGENCY HDT Expeditionary Systems Inc., Solon, Ohio, has been awarded a maximum $200,000,000 firm-fixed-priced, indefinite-delivery/indefinite-quantity contract for commercial off-the-shelf shelters and tents. This was a competitive acquisition with one response received. This is a one-year base contract with three one-year option periods. Locations of performance are Alabama, Ohio, Virginia and Kentucky, with a June 4, 2020, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. 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-1158). NAVY Accenture Federal Services LLC, Arlington, Virginia, is awarded a $79,074,099 firm-fixed-price, indefinite-delivery/indefinite-quantity contract to provide program and project management; support of the Navy Tele-Mentoring Program; system administration; training; communications support; data analytics; tele-radiology; and support of the Health Experts Online Portal and Pacific Asynchronous TeleHealth in support of the Bureau of Medicine and Surgery. Work will be performed in Falls Church, Virginia (83 percent); San Diego, California (10 percent); Portsmouth, Virginia (2 percent); Camp Pendleton, California (2 percent); Lemoore, California (1 percent); Twentynine Palms, California (1 percent); and Bremerton, Washington (1 percent). The contract will include a 60-month ordering period that will begin July 2019, and is expected to be completed by July 2024. Fiscal 2019 operations and maintenance (Defense Health Procurement) (O&MDHP) funds in the amount of $10,000 will be obligated to fund the contract's minimum amount and those funds will expire at the end of fiscal 2019. Subsequent task orders will be funded with the appropriate fiscal year O&MDHP funds. This contract resulted from a full and open competitive solicitation pursuant to the authority set forth in Federal Acquisition Regulation 16.504. The requirement was solicited through the Federal Business Opportunities and Navy Electronic Commerce Online websites, with 11 offers received. Naval Supply Systems Command Fleet Logistics Center Norfolk, Contracting Department, Philadelphia Office, Philadelphia, Pennsylvania, is the contracting activity (N00189-19-D-Z024). Lockheed Martin Sippican Inc., Marion, Massachusetts, is awarded a $56,865,098 firm-fixed-price, cost, and cost-plus-fixed-fee modification to previously awarded contract N00024-16-C-6412 to exercise Option Year Three for the production of Mk 48 Mod 7 guidance and control (G&C) sections, Mk 48 Mod 7 Common Broadband Advanced Sonar System (CBASS) Functional Item Replacement (FIR) kits, spares, production support material, and related engineering services and hardware repair support for G&C sections and CBASS kits. Work will be performed in Marion, Massachusetts (88 percent); Braintree, Massachusetts (8 percent); and Lemont Furnace, Pennsylvania (4 percent), and is expected to be completed by March 2021. Fiscal 2019 and 2017 weapons procurement (Navy); Foreign Military Sales; fiscal 2019 research, development, test and evaluation (Navy); and fiscal 2018 shipbuilding and conversion (Navy) funding in the amount of $56,865,098 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Communication & Power Industries LLC, MPP Division, Palo Alto California, is awarded a $10,244,971 firm-fixed-price, indefinite-quantity contract for evaluation, repair, rebuild and new manufacture of L-Band Klystron microwave tubes required to support the AN/SPS-49 radar system. Work will be performed in Palo Alto, California, and is expected to be completed by June 2024. Working capital funds (Navy) funding in the amount of $905,658 will be obligated at time of award, and will not expire at the end of the current fiscal year. This contract was not competitively procured, in accordance with 10 U.S. Code 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity (N0016419DWP32). ARMY General Dynamics Mission Systems Inc., Taunton, Massachusetts, was awarded a $36,850,696 modification (0125) to contract W15P7T-10-D-C007 for post-deployment software support services. Work locations and funding will be determined with each order, with an estimated completion date of June 1, 2020. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. TRAX International LLC, Las Vegas, Nevada, was awarded a $17,666,430 modification (P00312) to contract W9124Q-07-C-0504 for mission support services. Work will be performed in White Sands Missile Range, New Mexico, with an estimated completion date of Aug. 31, 2019. Fiscal 2019 research, development, test and evaluation funds in the amount of $2,100,000 were obligated at the time of the award. U.S. Army Mission and Installation Contracting Command, White Sands Missile Range, New Mexico, is the contracting activity. CORRECTION: The contract announced on May 31, 2019, for DirectViz Solutions LLC (DVS),* Chantilly, Virginia (W91RUS-19-C-0014), was not awarded. No new award date has been set. AIR FORCE AAI Corp., doing business as Textron Systems, Hunt Valley, Maryland, has been awarded a $24,318,602 undefinitized contract action for AC-208 contract logistics support and maintenance training. This contract provides for contractor logistics support and maintenance training for the AC-208 aircraft. Work will be performed at Hamid Karzai International Airport, Kabul, Afghanistan, and is expected to be complete by May 31, 2020. Fiscal 2018 Foreign Military Sales funds in the amount of $7,406,993 are being obligated at the time of award. Air Force Life Cycle Management Center, Training Aircraft Division, Wright Patterson Air Force Base, Ohio, is the contracting activity (FA8617-19-C-6234). Work Services Corp., Wichita Falls, Texas, has been awarded a $20,805,260 firm-fixed-price modification (P00002) to the previously awarded contract FA3020-18-C-0013 for food services. This contract modification provides full funding for the first option period. Work will be performed at Sheppard Air Force Base, Texas, and is expected to be complete by June 30, 2020. This modification brings the total cumulative face value of the contract to $36,010,315. Fiscal year 2019 operations and maintenance funds in the full amount are being obligated at the time of award. The 82nd Contracting Squadron, Sheppard Air Force Base, Texas, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1864933/source/GovDelivery/

  • Google Chrome Adds App-Bound Encryption to Protect Cookies from Malware

    August 1, 2024 | International, C4ISR, Security

    Google Chrome Adds App-Bound Encryption to Protect Cookies from Malware

    Google Chrome's latest update introduces app-bound encryption, enhancing cookie protection against malware on Windows.

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