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May 1, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Only 20 defense firms sought $17 billion in COVID loans. Now the Trump administration is weighing a fix.

By: Joe Gould

WASHINGTON ― Because fewer than 20 firms sought to apply for $17 billion in federal loans for Defense Department suppliers hurt by the coronavirus pandemic, the Trump administration is weighing how to broaden the eligibility requirements, a top Pentagon official said Thursday.

“The challenge is that this $17 billion worth of loans comes with some fairly invasive kind of riders, and I think companies have to think very carefully about whether that makes good business sense for them,” Under Secretary of Defense for Acquisition and Sustainment Ellen Lord said at a Pentagon news conference.

Treasury Secretary Steven Mnuchin, whose agency is implementing the loans, is requiring public companies seeking a share of $17 billion in coronavirus-related relief offer an equity stake to the government.

“It may not be as interesting as for private companies, so that's one of the differentiators I see,” Lord said.

The loans were intended for companies operating top secret facilities and with DX-rated contracts, which means the Pentagon deems them of highest national priority.

“I am not sure that companies with DX-rated contracts are the ones that have the most critical needs. They have had a little less than 20 companies reach out to date,” Lord said.

The Treasury Department has been in consultation with the Pentagon, and it's been open to ways the loan program could be expanded ― potentially to firms the Pentagon designates, Lord said.

“So I'm hoping that early next week, between the Treasury Department and the Department of Defense, we can come back with a little bit more fidelity to the defense industrial base to better identify who might most benefit from this particular money,” Lord said.

The agency had set a May 1 deadline for applications.

The $17 billion tranche in the CARES Act for COVID-19 relief was widely assumed to be targeted at Boeing, which is a prime defense contractor and had indicated that it might seek assistance. However, U.S. lawmakers have said the loans are intended to span the defense supply chain, said Andrew Hunter, director of the Center for Strategic and International Studies's Defense-Industrial Initiatives Group.

“I would just say the requirements under that program are pretty strict that," he said. "You have to be really in desperate need for financing and have no access to other forms of financing, you have to accept a lot of limits on how the business operates: [on] share buybacks, dividends, executive compensation. And so it's really been designed and set up as a lender of last resort to firms that really need that assistance.”

https://www.defensenews.com/congress/2020/04/30/only-20-defense-firms-sought-17-billion-in-covid-loans-now-the-trump-administration-is-weighing-a-fix/

On the same subject

  • Israel touts upgraded Iron Dome capabilities against land, maritime threats

    February 3, 2021 | International, Aerospace

    Israel touts upgraded Iron Dome capabilities against land, maritime threats

    By: Seth J. Frantzman JERUSALEM — An upgraded version of the Iron Dome air defense system has reached a “significant milestone” after contending with advanced threats in a test, Israel's Ministry of Defense announced Feb. 1. The Iron Dome is part of Israel's multilayered air defense and has been in service for a decade with more than 2,400 interceptions, mostly of projectiles launched from the Gaza Strip by militants. Two Iron Dome batteries were delivered to the U.S. Army in the last six months. “The Israel Missile Defense Organization (IMDO), in the Directorate for Defense R&D of the Israel Ministry of Defense, and Rafael Advanced Defense Systems have completed a successful series of flight tests of the Iron Dome weapon system,” Israel's Ministry of Defense said. “The Israeli Air Force (IAF) and Navy also participated in the test, which was conducted in a base in central Israel. The test campaign was held in a number of scenarios simulating advanced threats with which the Iron Dome is expected to contend during times of conflict — whether on land or in the sea.” The new system is expected to be delivered to the Israel Air Force for operational use — though it's unclear when — and then later installed on Israel's new Sa'ar 6 corvette, which arrived last year from Germany. It is expected to equip this new class of warships, which will be equipped with a variety of advanced Israeli systems in the coming years. The new ships are supposed to defend Israel's exclusive economic zone off the country's coast. Israel has expanded its infrastructure off the coast in the last several years due to natural gas discoveries in its exclusive economic zone, and the country signed a deal to build an Eastern Mediterranean pipeline to Greece via Cyprus last year. In the 2006 Lebanon war, the militant group Hezbollah fired a C-802 missile at a Sa'ar 5 ship. Egyptian and Saudi Arabian ships have also contended with anti-ship missile threats in recent years from Sinai and Yemen, respectively. Israel's Rafael would not elaborate on specifics of the test or the new capabilities. The ministry also would not provide further details beyond its statement. Video released by the ministry showed the logos of the companies involved, including the prime contractor Rafael; IAI, whose subsidiary Elta Systems is the maker of the multimission radar; and mPrest, which produces the BMC command-and-control system. The video also showed target drones launched over the water before Iron Dome intercepted them. It also showed several other quadcopter-style drones prior to takeoff, but it's unclear if they were targets in the drill. In mid-December, Israel launched an unprecedented integration test of its air defense systems, including Iron Dome, David's Sling and Arrow. During the test, Iron Dome was used to intercept cruise missiles — a new capability for the system. Drones and cruise missiles were used by Iran in September 2019 in an attack on Saudi Arabia, which led to concerns at the time over whether air defense systems were ready to confront drone swarm attacks or contend with slow and low-flying, maneuverable missiles. Iron Dome has received U.S. funding that tops about $500 million annually for joint air defense projects with Israel. In August 2020, Rafael and American firm Raytheon Technologies agreed to a joint venture to build Iron Dome in the United States. The facility builds the system and its Tamir interceptor, which is called SkyHunter, in the U.S. At the time, the system was said to be capable of intercepting cruise missiles, unmanned aircraft, rockets, artillery and mortars. When Israel completed the delivery of its second battery to the U.S. on Jan. 3, 2021, Israeli Defense Ministry Benny Gantz said he was “confident the system would assist the US Army in protecting American troops from ballistic and airborne threats as well as from developing threats in the areas where US troops are deployed on various missions.” Subsequent reports in Israeli media hinted that the U.S. might deploy the system to the Gulf where it has bases. Israel's MoD did not comment on the reports. The U.S. previously sent Patriot batteries as well as counter-rocket, artillery and mortar systems to defend against threats in the Gulf region. https://www.defensenews.com/training-sim/2021/02/02/israel-touts-upgraded-iron-dome-capabilities-against-land-maritime-threats

  • Saudi Arabia announces UAV procurement

    April 29, 2020 | International, Aerospace

    Saudi Arabia announces UAV procurement

    Charles Forrester, London - Jane's Defence Weekly Saudi Arabia's General Authority for Military Industries (GAMI) announced on 27 April that the country was procuring six unmanned systems from local firm Intra Defence Technologies for delivery in 2021, and a further 40 systems within five years. The type of UAV was not disclosed in the Tweet from the organisation's official account, but Intra advertises the Karayel tactical UAV, developed by Turkey's Vestel, and the Asef VTOL UAV, which was launched at the Dubai Airshow in 2019. Jane's notes that a Karayel was lost over Yemen's Al-Hudaydah in late December after being shot down by a surface-to-air missile near the port of Al-Salif. The Karayel has an endurance of 20 hours at 18,000 ft (5,486 m) and a cruise speed of 60-80 kt. Maximum payloads for the platform are 70 kg under the fuselage and 60 kg per wing across a total of four hardpoints. The platform's datalink range is 200 km from the GCS. The platform shown at the Dubai Airshow was armed with Roketsan MAM-L and MAM-C munitions. The platform was also shown with a Hensoldt Argos II EO/IR pod to provide day-and-night surveillance capabilities. Intra signed an agreement with Hensoldt South Africa's Optronics division to develop an electro-optical payload for UAVs in Saudi Arabia ahead of the 2019 Dubai Airshow as part of efforts to improve self-sufficiency in the unmanned aerial vehicle domain. Intra representatives told Jane's at the Dubai Airshow last year that the company was primarily orienting its marketing efforts for the Karayel towards the Saudi military, and potentially exporting the platform to Brazil and Kuwait. GAMI, which was announced in 2017 and formally convened in 2019, has roles ranging from the management of procurement for the Saudi military to the supervision of defence-industrial research and development (R&D) and the transfer of technology to Saudi industry. https://www.janes.com/article/95813/saudi-arabia-announces-uav-procurement

  • Contract Awards by US Department of Defense - November 19, 2020

    November 20, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - November 19, 2020

    WASHINGTON HEADQUARTERS SERVICES American Systems Corp., Chantilly, Virginia (HQ0034-21-D-0003); Applied Research Associates Inc., Alexandria, Virginia (HQ0034-21-D-0004); and Modern Technology Solutions Inc., Alexandria, Virginia (HQ0034-21-D-0002), have been awarded an indefinite-delivery/indefinitely-quantify contract with a maximum amount of $496,000,000. This requirement will provide the range of research, development, test and evaluation technical and engineering services required to assist the Office of the Under Secretary of Defense for Research and Engineering in accomplishing its mission to create innovative warfighting technologies and advanced capabilities required to maintain U.S. technological superiority. Work performance will take place in the Northern Capital Region, including Alexandria, Virginia; and Chantilly, Virginia. No funds will be obligated at time of the award. The expected completion date is Nov. 18, 2025. Washington Headquarters Services, Arlington, Virginia, is the contracting activity. DEFENSE LOGISTICS AGENCY Vermilion Valley Produce Co.,* Danville, Illinois, has been awarded a maximum $265,500,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for fresh fruits and vegetables. This was a competitive acquisition with one response received. This is a four-year six-month contract with no option periods. Location of performance is Illinois, with a May 18, 2025, ordering period end date. Using customers are Army, Air Force, and Department of Agriculture schools. Type of appropriation is fiscal 2021 through 2025 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-21-D-P359). Hill-Rom Co. Inc., Batesville, Indiana, has been awarded a maximum $48,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for medical equipment and accessories for the Defense Logistics Agency electronic catalog. This was a competitive acquisition with 135 responses received. This is a five-year contract with no option periods. Location of performance is Indiana, with a Nov. 16, 2025, ordering period end date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2021 through 2026 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-21-D-0052). AIR FORCE Journey Construction Inc., Taylor, Texas (FA4661-21-D-0001); Pace-Amtex JV LLC, Boerne, Texas (FA4661-21-D-0002); GMA Construction Group, Chicago, Illinois (FA4661-21-D-0003); Pro-Mark Services Inc., Rapid City, South Dakota (FA4661-21-D-0004); and Sea Pac Engineering Inc., Los Angeles, California (FA4661-21-D-0005), have collectively been awarded a ceiling $150,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, multiple award construction contract for $150,000,000. Work will be performed at Dyess Air Force Base, Texas, and is expected to be completed Nov. 18, 2027. Current fiscal operation and maintenance funds will be used per individual task order. The 7th Contracting Squadron, Dyess AFB, Texas, is the contracting activity. Siemens Industry Inc., Buffalo Grove, Illinois, has been awarded a $54,000,000 indefinite-delivery/indefinite-quantity, firm-fixed-price, supply/install contract for the switchgear replacement effort program. This contract will provide for a streamlined means to provide supply and installation of gas insulated switchgear. Work will be performed at Arnold Air Force Base, Tennessee; Mountain View, California; Eglin AFB, Florida; Holloman AFB, New Mexico; Kirtland AFB, New Mexico; and Wright-Patterson AFB, Ohio, and is expected to be completed Nov. 16, 2025. This award is the result of a sole-source acquisition. Fiscal 2020 research, development, test and evaluation funds in the amount of $8,365,562 are being obligated at the time of award. Air Force Test Center, Arnold AFB, Tennessee, is the contracting activity (FA9101-21-D-0003). L-3 Technologies, Greenville, Texas, has been awarded an $18,796,399 cost-plus-fixed-fee contract modification (P00009) to contract FA8620-18-F-4801 for an additional engineering effort. This modification provides for additional non-recurring and recurring engineering required to develop and install structural reinforcements to the aircraft. Work will be performed in Greenville, Texas, and is expected to be completed Dec. 24, 2022. This contract involves 100% Foreign Military Sales (FMS) and is the result of a sole-source acquisition. The total cumulative face value of the contract is $273,945,200. FMS funds in the full amount are being obligated at the time of the award. The 645th Aeronautical Systems Group, Wright-Patterson Air Force Base, Ohio, is the contracting activity. Siemens Healthineers, Flanders, New Jersey, has been awarded a $12,381,645 firm-fixed-price contract for an industrial base expansion. The contract provides building modifications, equipment purchases, installation and qualification testing to expand U.S. domestic production capacity for SARS-CoV-2 antigen assays. Work will be performed in Walpole, Massachusetts, and is expected to be completed Aug. 31, 2021. This contract award is part of the ongoing collaboration between the Department of Defense and the Department of Health and Human Services and is funded through the Health Care Enhancement Act. The Air Force Lifecycle Management Center, Hanscom Air Force Base, Massachusetts, is the contracting activity (FA8730-21-C-0006). BAE Systems Technology Solutions & Services Inc., Rockville, Maryland, has been awarded a $12,342,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for Diminishing Manufacturing Sources and Material Shortages support. This contract provides support for Air Force (AF) and non-AF users, supporting the AF, to proactively reduce mission capability impacts to improve logistics support and weapon system sustainability. Work will be performed at Hill Air Force Base, Utah; Robins AFB, Georgia; Tinker AFB, Oklahoma; and Wright-Patterson AFB, Ohio, with some work performed at Fort Walton Beach, Florida. The work is expected to be complete by June 20, 2025. This award is the result of a competitive acquisition resulting in receipt of one offer. Fiscal 2021 Consolidated Sustainment Activity Group engineering funds in the amount of $10,285,000 are being obligated in the first task order at the time of award. The Air Force Sustainment Center, Tinker AFB, Oklahoma, is the contracting activity (FA8109-21-D-0001). Hardwood Products Co. LP, Guilford, Maine, has been awarded a not-to-exceed $11,640,270 firm-fixed-price, undefinitized contract action as a modification (P00003) to contract FA8730-20-C-0056 for industrial base expansion for U.S. domestic production capacity for medical flock tip swabs. This contract modification funds the design, procurement and expedited implementation of facility upgrades, enabling an early, interim production capability of flock tip swabs. Work will be performed in Pittsfield, Maine, and is expected to be completed March 30, 2021. Fiscal 2021 other procurement funds in the amount of $5,078,350 are being obligated at the time of award. The cumulative face value of the contract is $62,599,861. The Air Force Life Cycle Management, Hanscom Air Force Base, Massachusetts, is the contracting activity. FCN Inc., Rockville, Maryland, has been awarded a $7,846,260 firm-fixed-price modification to exercise the first option period for the Endgame Endpoint Security program software subscription to maintain the weapon system components and weapon system baseline to meet Air Force Space Command authority to operate configurations. Work will be performed in Rockville, Maryland, and is expected to be completed Nov. 29, 2024. This award is the result of a competitive acquisition and four offers were received. Fiscal 2021 operation and maintenance; and Air National Guard procurement funds in the full amount are being obligated at the time of modification to exercise the first option period. The Air Force Life Cycle Management Center, Joint-Base San Antonio-Lackland, Texas, is the contracting activity (FA8307-20-F-0005). NAVY IAP-ECC LLC, Burlingame, California, is awarded firm-fixed-price task order N62742-21-F-4000 for $84,547,765 under a multiple award contingency contract for construction and maintenance of a contractor berthing camp at Naval Air Weapons Station (NAWS), China Lake, California. The work to be performed provides for incidental temporary facilities and facility services for a berthing camp in support of the China Lake Earthquake Recovery project at NAWS, China Lake. Incidental temporary facilities include fencing, living/sleeping units, operational center and a security station. Facility services include management and administration, unaccompanied housing, facility investment, custodial, pest control, integrated solid waste management, grounds maintenance and landscaping, pavement clearance, wastewater and water. The need for the berthing camp to support 11 military construction (MILCON) project contractors is an emergency response to the earthquakes that affected the China Lake area in July 2019. The task order also contains four unexercised options, which if exercised, would increase the cumulative task order value to $138,743,035. Work will be performed in Ridgecrest, California, and is expected to be completed by March 2025. Fiscal 2020 MILCON (Navy) funds; and fiscal 2021 working capital (Navy) funds in the amount of $84,547,765 are obligated on this award and will not expire at the end of the current fiscal year. One proposal was received for this task order. The Naval Facilities Engineering Systems Command, Pacific, Pearl Harbor, Hawaii, is the contracting activity (N62742-16-D-3553). Cherokee Nation Management and Consulting LLC, * Catoosa, Oklahoma, is awarded an $80,943,352 firm-fixed-price, time-and-materials contract for a two-month phase-in period and a 10-month base period with two 12-month option periods for logistics services to manage, support and operate the Marine Corps Consolidated Storage Program warehouse network. Work will be performed in Barstow, California (23%); Camp Lejeune, North Carolina (18%); Camp Pendleton, California (13%); Okinawa, Japan (10%); Miramar, California (9%); Camp Geiger, North Carolina (7%); Twenty-nine Palms, California (4%); Cherry Point, North Carolina (4%); Kaneohe Bay, Hawaii (3%); Yuma, Arizona (2%); Beaufort, South Carolina (2%); Iwakuni, Japan (2%); New River, North Carolina (2%); and Bridgeport, California (1%). Work is expected to be completed January 2024. No funding will be obligated at time of award and the award will be made contingent to the availability of funds. This contract was competitively solicited via beta.sam.gov with seven proposals received. The Marine Corps Logistics Command, Albany, Georgia, is the contracting activity (M67004-21-C-0001). Marine Group Boat Works LLC,* Chula Vista, California, is awarded a $48,717,886 firm-fixed-price modification to previously awarded contract N00024-18-C-2223 in support of the government of Jordan for two 37-meter patrol boats, communications equipment and other technical assistance. Work will be performed in Chula Vista, California, and is expected to be completed by September 2023. Foreign Military Sales (Jordan) in the amount of $48,717,886 will be obligated at time of award and will not expire at the end of the current fiscal year. In accordance with 10 U.S. Code 2304 (c) (4), this contract was not competitively procured: International Agreement. This contract is for two 37-meter Patrol Boats, communications equipment and other technical assistance for the Royal Jordanian Navy. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Kings Bay Support Services LLC, Alexandria, Virginia, is awarded a $24,085,883 indefinite-delivery/indefinite-quantity modification for a bridge contract to extend services for base operating support services at Naval Submarine Base, Kings Bay, Georgia. The work to be performed provides for all labor, facilities management, supervision, tools, materials, equipment, incidental engineering, environmental services and transportation to effectively execute base operations support services. All work will be performed in St. Mary's, Georgia. After award of this option, the total cumulative contract value will be $392,424,567. This option period is from December 2020 to May 2021. No funds will be obligated at time of award. Fiscal 2021 operation and maintenance (Navy) contract funds in the amount of $16,213,566 for recurring work will be obligated on individual task orders issued during the option period. The Naval Facilities Engineering Systems Command, Southeast, Jacksonville, Florida, is the contracting activity (N69450-11-D-7578). Insitu Inc., Bingen, Washington, is awarded a $9,769,387 modification (P00009) to firm-fixed-price order N68335-19-F-0434 against previously issued basic ordering agreement N68335-16-G-0046. This modification definitizes pricing and exercises options for the procurement of 15 ScanEagle unmanned aerial vehicles, nine ScanEagle payloads, and three spares lots needed to provide the Afghanistan National Army (ANA) intelligence, surveillance and reconnaissance capabilities, and support current ANA ScanEagle efforts. Work will be performed in Bingen, Washington (100%), and is expected to be completed in July 2021. Foreign Military Sales funds in the amount of $9,769,387 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. I.E. Pacific Inc.,* Escondido, California, is awarded firm-fixed-price task order N62473-20-F-5102 for $8,123,000 under a multiple award construction contract for repair of a bachelors enlisted quarters (BEQ) and repair of water channel at Marine Corps Base, Camp Pendleton, Virginia. The work to be performed provides for the repair of BEQ Building 53451 with 64 units and the existing open channel/swale and culvert system through this corridor. BEQ Building 53451 requires work to bring it up to current building code and life safety standards. The channel is undersized and needs to be upgraded to provide higher flow rates without spilling over the channel. The renovation project includes replacement of the existing built-up roof with a standing seam metal roof and the replacement of exterior hollow metal doors, windows, window screens, shades, hollow metal doors/frames and door locks with an electronic card reading lock system; the patching, repairing, and repainting of all existing interior walls and ceilings, exterior walls/façade, balcony, stair panels, handrails and guardrails, and other surfaces; and the installation of new ceiling fans in each billeting room, the duty room and the lounge. Work will be performed in Oceanside, California, and is expected to be completed by May 2022. Fiscal 2021 operation and maintenance (Marine Corps) contract funds in the amount of $8,123,000 are obligated on this award and will not expire at the end of the current fiscal year. Four proposals were received for this task order. The Naval Facilities Engineering Systems Command, Southwest, San Diego, California, is the contracting activity (N62473-17-D-4628). ARMY Franconia Real Estate Services Inc., doing business as Franconia Allegiance Government Relocation, Woodbridge, Virginia, was awarded a $65,000,000 blanket purchase agreement (W912DR-21-A-0001) for the Defense National Relocation Program. Bids were solicited via the internet with 11 received. Work will be performed in Baltimore, Maryland, with an estimated completion date of Nov. 30, 2025. The U.S. Army Corps of Engineers, Baltimore, Maryland, is the contracting activity. Reliance Relocation Services Inc., doing business as Relo Direct, Chicago, Illinois, was awarded a $65,000,000 blanket purchase agreement (W912DR-21-A-0002) for the Defense National Relocation Program. Bids were solicited via the internet with 11 received. Work will be performed in Baltimore, Maryland, with an estimated completion date of Nov. 30, 2025. The U.S. Army Corps of Engineers, Baltimore, Maryland, is the contracting activity. Attain LLC, McLean, Virginia, was awarded a $19,125,495 modification (BA0733) to contract W91QUZ-11-D-0016 for contractor resources to support the Army Shared Services Center. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of April 30, 2022. The U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2421845/source/GovDelivery/

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