Lockheed realigns space business to boost efficiency

On the same subject

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  May 16, 2024 | International, Land

  Four ways US Army’s Pacific chief plans to boost regional land forces

  More countries are joining multilateral exercises and training events to strengthen a network to deter aggression in the Pacific.

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

  Citing TransDigm, DoD seeks new acquisition powers, and trade groups oppose

  By: Joe Gould WASHINGTON ― Four defense industry trade associations “strongly oppose" a handful of Pentagon-backed procurement reform proposals that they say would harm the defense industrial base, and they're asking Congress to reject them. Two of the proposals aim at controversial pricing practices used by TransDigm by requiring contractors to submit cost information for commercial items and by requiring contracting officers to conduct a commercial item determination for every procurement. Others would set a preference for performance-based contract payments and authorize the Defense Department to release or disclose detailed manufacturing or process data. The May 6 protest letter came from the Acquisition Reform Working Group — made up of the National Defense Industrial Association, American Council of Engineering Companies, the Computing Technology Industry Association and the Information Technology Industry Council — to the the House and Senate armed services committees. It comes as the panels were readying their drafts of the 2021 National Defense Authorization Act. The Pentagon has worked to monitor its network of suppliers from the economic shocks associated with the coronavirus pandemic and to protect suppliers by using emergency funding from Congress to speed payments and improve cash flow along the supply chain. The trade groups noted they represent “thousands of small, mid-sized, and large companies in addition to hundreds of thousands of employees that provide goods, services, and personnel to the Department of Defense,” and said the four proposals a “could have significant consequences for the defense industrial base.” Congress focused ire at TransDigm last year after the Defense Department's Inspector General found for $26.2 million in parts the military bought from TransDigm, it earned $16.1 million in excess profit. Transdigm was the only manufacturer of the majority of the parts, which let it set the market prices even for competitively awarded parts. Though DoD has argued its contractors need new latitude to make commercial item determinations and obtain cost or pricing information to prevent the excessive pricing TransDigm was accused of, the trade groups argue the TransDigm's actions weren't facilitated by an inappropriate reliance on improper commercial item determinations, or insufficient access to pricing data. “As illustrated by the TransDigm Group, Inc's pricing practices, generally once a conversion to a commercial product or commercial service is made, it is common for prices to increase and subsequent contracting officers find it difficult to obtain data necessary to determine price reasonableness and negotiate fair and reasonable prices on behalf of the taxpayer,” the department said in its proposal. Another proposal would require a contractor to submit uncertified cost information for commercial item proposals or contracts less than $2 million. The idea behind the reform is DoD wants to be able to get more insight into the costs of sole-source items and put itself in a more favorable position to negotiate with sole-source companies. Congressional hearings on TransDigm's excessive pricing showed Defense leaders need the authority to obtain the data “to the extent necessary to determine price reasonableness is paramount in ensuring that such excessive pricing practices are curtailed.” But the trade groups argue that levying the new regulations would “add a significant barrier to commercial item acquisition, reduce information sharing, further burden the system, and impede—rather than enable—the delivery of capabilities to the warfighter at the ‘speed of relevance'—all with little to no added protection for the government or the taxpayer." The trade associations also opposed DoD's legislation to set a preference for performance-based contract payments. The groups said a DoD proposal to “recouple” total performance-based payments to total cost incurred would reverse Congress's previous work to emphasize performance over cost and contradict a spate of defense acquisitions rules. DoD's argument is that it shouldn't be reimbursing a contractor more than its actual costs, or it “would result in negative levels of contractor investment,” and create a disincentive for contractors to deliver. Another disputed proposal would let DoD release detailed manufacturing or process data, or DPMD, pertaining to privately funded commercial or noncommercial items outside of the government to third parties seeking to compete against the original equipment manufacturer. It's the latest episode in a running game of tug-of-war between industry and DoD over intellectual property. While Congress has in recent years prodded DoD to set intellectual property strategies early in acquisition programs and negotiate for IP rights on a case-by-case basis, the trade groups argue the proposal would give DoD “an automatic default authority” and “eliminate the possibility of a negotiated solution.” https://www.defensenews.com/congress/2020/05/15/citing-transdigm-dod-seeks-new-acquisition-powers-and-trade-groups-oppose/

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  October 25, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

  Contract Awards by US Department of Defense - October 24, 2019

  ARMY Frank X. Spencer Inc.,* El Paso, Texas, was awarded a $240,000,000 firm-fixed-price contract for professional land survey architect-engineer services. Bids were solicited via the internet with 12 received. Work locations and funding will be determined with each order, with an estimated completion date of Oct. 23, 2024. U.S. Army Corps of Engineers, Little Rock, Arkansas, is the contracting activity (W9126G-20-D-6001). DEFENSE LOGISTICS AGENCY Combat Medical Systems LLC, Harrisburg, North Carolina, has been awarded a maximum $43,432,160 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for medical and surgical supplies. This was a competitive acquisition with 16 responses received. This is a five-year contract with no options. Location of performance is North Carolina, with an Oct. 23, 2024, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DE-20-D-0003). Creighton AB Inc., Reidsville, North Carolina, has been awarded a maximum $8,055,077 firm-fixed-price contract for men's trousers. This was a competitive acquisition with one response received. This is a one-year base contract with four one-year option periods. Locations of performance are North Carolina and New York, with an Oct. 23, 2020, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1211). (Awarded Oct. 23, 2019) NAVY General Dynamics Electric Boat Corp., Groton, Connecticut, is awarded a $32,082,297 cost-plus-fixed-fee modification to previously awarded contract N00024-17-C-2104 to exercise options for the accomplishment of reactor plant planning yard services for nuclear-powered submarines and support yard services for the Navy's moored training ships. This option exercise is for the accomplishment of reactor plant planning yard services for nuclear-powered submarines and support yard services for the Navy's moored training ships. General Dynamics Electric Boat Corp. will furnish, fabricate, or acquire such materials, supplies and services as may be necessary to perform the functions of the planning yard for reactor plants and associated portions of the propulsion plants for nuclear powered submarines. Work will be performed in Groton, Connecticut (90%); and Charleston, South Carolina (10%), and is expected to be complete by September 2021. Fiscal 2020 operations and maintenance (Navy); and other procurement (Navy) funding in the amount of $13,214,312 will be obligated at time of award and $5,514,432 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. ViaSat Inc., Carlsbad, California, is awarded a $23,914,150 five-year, firm-fixed-price, long-term requirement contract for the repair support of the Multifunctional Information Distribution System, Low Volume Terminal for the Navy. This is a five-year contract with no option periods. Work will be performed in Oostkamp, Belgium (50%); Carlsbad, California (37%); Palm Bay, Florida (9%); and Lynwood, Washington (4%). Work is expected to be completed by October 2024. Annual working capital funds (Navy) will be used and funds will not expire at the end of the current fiscal year. A delivery order in the amount of $3,930,305 will be obligated at the time of award. One company was solicited for this sole sourced requirement under authority 10 U.S. Code 2304 (c)(1), with one offer received. Naval Supply Systems Command, Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-20-D-VK01). FreeAlliance.com LLC,* McLean, Virginia, is awarded a $15,299,578 cost-plus-fixed-fee contract for advanced cyber support services in support of the Marine Corps Cyberspace Operations Group. Work will be performed in Quantico, Virginia. This one-year contract includes four one-year option periods which, if exercised, would bring the cumulative value of this contract to an estimated $79,599,761. The period of performance of the base period is Nov. 1, 2019, through Oct. 31, 2020. If all options are exercised, the period of performance would extend through Oct. 31, 2024. Fiscal 2020 operations and maintenance (Marine Corps) funds in the amount of $1 million will be obligated at time of award. Fiscal 2020 operations and maintenance (Marine Corps) funds in the amount of $1 million will expire at the end of the current fiscal year. This contract was competitively procured via request for proposal N66001-18-R-0011, which was published on the Federal Business Opportunities website and the Naval Information Warfare Systems Command e-Commerce Central website. Five offers were received and one was selected for award. The Naval Information Warfare Center Pacific, San Diego, California, is the contracting activity (N66001-20-C-3406). Bristol Design Build Services LLC,* Anchorage, Alaska, is a $14,435,000 firm-fixed-price task order N62473-20-F-4013 under a multiple award construction contract for the design and construction at Repair Building 618 at Naval Amphibious Base, Naval Base, Coronado, California. The work to be performed provides for a three-story unaccompanied housing facility and is being utilized for enlisted program sailors. Repair work includes addressing deteriorated exterior and interior facility systems and components such as fatigued concrete floors, walls and hallways, damaged ceiling tiles, rusted out doors and door casings, cracked concrete stairs, damaged/aging electrical systems and components, mechanical heating, ventilation and air conditioning system, lighting and faulty wet utility/plumbing systems. Work will be performed in Coronado, California, and is expected to be completed by May 2021. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $14,435,000 are obligated on this award and will expire at the end of the current fiscal year. Four proposals were received for this task order. Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-17-D-4636). AIR FORCE Lockheed Martin Aeronautics Corp., Marietta, Georgia, has been awarded a not-to-exceed $12,437,030 undefinitized contractual action contract for C-130-J support. The contract will provide long term sustainment (LTS) for France's C-130-J aircraft. Critical components of LTS support include program management support; spares, supply support services; support equipment; diminishing manufacturing sources, sustaining engineering services, sustaining engineering/technical services, field services representatives (FRS), logistics service representatives, contract field team, FSR deployment/travel, technical order updates; technical order print and distribution; country standard time compliance technical orders; depot maintenance; aircraft modifications; and data and configuration management programs. Work will be performed at Marietta, Georgia; and at French air bases, and is expected to be completed by Jan. 1, 2023. This award is the result of a sole source acquisition and is 100% foreign military sales. Foreign Military Sales funds in the amount of $2,487,391 will be obligated at the time of award. The Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8553-20-C-0001). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/1998102/source/GovDelivery/