February 21, 2023 | International, Aerospace
Saab Responds to NATO RFI with GlobalEye
NATO will define its new generation capability within the Alliance Future Surveillance and Control (AFSC) project
May 27, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
Opinion: Defense Is Unscathed By COVID-19? Think Again.
John Dowdy May 22, 2020
The rapid onset of the novel coronavirus has wreaked havoc on markets around the world, hitting commercial aviation especially hard as load factors plummet, flights are canceled and suppliers cut production rates and furlough workers. Amid all this disruption, defense manufacturers appear to have been relatively unscathed. But defense has always been a long-cycle business, driven more by annual budgets than daily load factors. And as the bill for rebuilding the global economy mounts, defense budgets are sure to come under pressure.
COVID-19 is first and foremost a human tragedy, and its continued spread is still a major concern. But we must solve for both the virus and the economy; the dual imperative of our time is the desire to preserve lives and livelihoods. Both will require substantial resources for public health and for economic rejuvenation. Countries around the world are making massive investments to rebuild battered economies, putting out more than $11 trillion in the last 2.5 months, with more sure to follow.
In the U.S., Congress passed the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act at the end of March, bringing the total stimulus thus far to $3 trillion, which could push the fiscal 2020 budget deficit to a record $3.8 trillion, an eye-watering 18.7% of the country's GDP. Other countries have passed similar aid packages, leading to soaring debt levels around the world. And more may well be necessary: The House has passed proposals for another $3 trillion in aid, although the bill's fate in the Senate is unclear.
Government debt levels are already high, swelling as the global financial crisis of 2008 caused a drop in tax revenues and a rise in social-safety-net payments. And the wave of deleveraging many expected as the recession eased never materialized: From 2008 to mid-2017, global government debt more than doubled, reaching $60 trillion. According to the International Monetary Fund (IMF), this year's increase in public-sector debt has reached 122.4% of gross domestic product (GDP) on average in developed countries.
Increased deficits worldwide are likely to put pressure on all discretionary spend, including defense. In the U.S., military spending accounts for 15% of all federal and roughly half of discretionary spending, so defense may come under real pressure. Rep. Ken Calvert of California, the ranking Republican on the House Appropriations defense subcommittee, says defense budgets were strained even before this year's unplanned burst of deficit spending. “There's no question that budgetary pressure will only increase now for all segments of our federal budget, including defense,” Calvert said. Defense Secretary Mark Esper has said he is preparing for future defense budget cuts and that legacy systems may need to be scrapped to pay for more modern forces.
South Korea shows early signs of this trend, with leaders recently announcing a shift in resources to disaster relief in response to the pandemic. Money came from education, agriculture, and environmental protection but mostly from defense. This example is particularly significant, given that South Korea is still technically at war, frozen in conflict with its immediate neighbor to the north. Furthermore, South Korea has been more effective than its peers in addressing the pandemic with a swift medical response and widespread testing that allowed the country to reopen its economy faster than other advanced countries. If South Korea is altering its budgetary priorities, others could follow.
The coronavirus has already had a massive human cost, resulting in approximately 300,000 deaths, including more than 90,000 Americans, more than were killed in Vietnam, the Gulf War, Iraq and Afghanistan combined. But the financial cost has been even greater. The cost in the US has already exceeded that of all the wars the U.S. has fought over the last 50 years. And if an additional $3 trillion is approved by Congress, the cost will surpass that of World War II.
At this point, it is too early to predict how much the defense budget will draw down how quickly. Indeed, the shift might not occur immediately. Broadly speaking, two factors have historically had the most influence on defense spending: threats and affordability. Governments will all calibrate the relative importance of the threats they face against their new economic realities. In keeping with past patterns, countries may give most weight to threats, real or perceived, over the near term. If there are anticipated or ongoing conflicts, their defense budgets will probably increase. Over the longer term, however, economic factors tend to prevail, and governments may set defense budgets in line with their diminished resources. Either way, we face some tough decisions ahead.
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November 25, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
Contract Awards by US Department of Defense - November 20, 2020
NAVY BAE Systems Norfolk Ship Repair, Norfolk, Virginia, was awarded a $197,452,828, firm-fixed-price contract for the execution of the USS Wasp (LHD 1) fiscal 2021 Chief of Naval Operations scheduled docking selected restricted availability. This availability will include a combination of maintenance, modernization and repair of USS Wasp (LHD 1). This contract includes options which, if exercised, would bring the cumulative value to $237,765,941. Work will be performed in Norfolk, Virginia, and is expected to be completed by May 2022. Fiscal 2021 operation and maintenance (Navy) (97.2%); and fiscal 2021 other procurement (Navy) (2.8%) funding in the amount of $197,452,828 will be obligated at contract award, of which funding in the amount of $191,836,933 will expire at the end of the current fiscal year. This contract was competitively procured using full and open competition via the Federal Business Opportunities website with one offer received in response to Solicitation No. N00024-20-R-4404. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-21-C-4404). (Awarded Nov. 20, 2020) Auxiliary Systems Inc.,* Norfolk, Virginia, is awarded a maximum dollar value $35,423,320 firm-fixed-price, indefinite-delivery/indefinite-quantity contract to provide alternating current/direct current motors and motor generator sets repair. Work will be performed in Norfolk, Virginia, and is expected to be complete by November 2021 and if options are exercised, work will be completed by November 2025. Fiscal 2021 operation and maintenance (Navy) funding in the amount of $12,000 ($12,000 minimum guarantee per contract) will be obligated at time of award and will expire at the end of the current fiscal year. This single award contract was procured as a small business set-aside via the beta.sam.gov website with two offers received. The Mid-Atlantic Regional Maintenance Center, Norfolk, Virginia, is the contracting activity (N50054-21-D-0001). Bell Boeing Joint Project Office, Amarillo, Texas, is awarded a $12,861,992 modification (P00004) to cost-plus-fixed-fee and firm-fixed-price order N00019-20-F-0315 against previously issued basic ordering agreement N00019-17-G-0002. This modification exercises options to modify the V-22 aircraft to the government of Japan's unique configuration requirements. Additionally, the modification exercises options for the production and delivery of nine traffic collision avoidance systems, technical support representation and preservation of aircraft post completion of unique modifications. Work will be performed in Stennis, Mississippi (75%); Ridley Park, Pennsylvania (15%); Fort Worth, Texas (5%); and Tokyo, Japan (5%), and is expected to be completed in August 2024. Foreign Military Sales funds in the amount of $12,861,992 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Pacific Federal Management Inc.,* Tumon, Guam, is awarded a $10,366,798 indefinite-delivery/indefinite-quantity modification for the exercise of Option Number One for base operating support services at Naval Base (NB) Guam and Naval Support Activity (NSA) Andersen. The work to be performed provides for all labor, supervision, management, tools, material, equipment, facilities, transportation and incidental engineering and other items necessary to accomplish all work to perform ground maintenance and tree trimming services for U.S. military facilities on Guam and NSA Andersen at various locations on Guam, Marianas Islands. After award of this option, the total cumulative contract value will be $19,783,731. Work will be performed in the Naval Facilities Engineering Systems Command (NAVFAC) Marianas area of operations, including but not limited to, NB Guam (70%); and NSA Andersen, Guam (30%). This option period is from December 2020 to November 2021. No funds will be obligated at time of award. Fiscal 2021 operation and maintenance (O&M) (Navy); and fiscal 2021 O&M (family housing) in the amount of $7,945,193 for recurring work will be obligated on individual task orders issued during the option period. NAVFAC Marianas, Guam, is the contracting activity (N40192-20-D-9000). IAP Worldwide Services Inc., Cape Canaveral, Florida, is awarded a $9,112,276 recurring/non-recurring services type modification for base operating services at Naval Support Activity Annapolis. The work to be performed provides for all management, supervision, labor hours, training, equipment and supplies necessary to perform base operating services to include, but not limited to, facility investment, service calls, pest control, operation of utility plants, refuse collection, special events and snow and ice removal. Work will be performed in Annapolis, Maryland, with the contract period of Dec. 1, 2020, to Feb. 28, 2021. No funds will be obligated at time of modification award. Fiscal 2021 operation and maintenance in the amount of $5,833,247 for recurring work will be obligated on individual task orders issued during the contract period. The Naval Facilities Engineering Systems Command, Washington, Washington, D.C., is the contracting activity (N40080-20-D-0500). ARMY FLIR Unmanned Ground Systems Inc., Chelmsford, Massachusetts, was awarded a $30,100,000 modification (P00007) to contract W56HZV-19-D-0031 for reset, sustainment, maintenance and recap parts to support the overall sustainment actions of the entire FLIR Unmanned Ground Systems family of small, medium and large robots. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 23, 2020. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity. Norfolk Dredging Co., Chesapeake, Virginia, was awarded a $20,490,500 firm-fixed-price contract to remove dredging material from the Delaware River. Bids were solicited via the internet with one received. Work will be performed in Bellafonte, Delaware, with an estimated completion date of March 22, 2021. Fiscal 2010 civil construction funds in the amount of $20,490,500 were obligated at the time of the award. The U.S. Army Corps of Engineers, Philadelphia, Pennsylvania, is the contracting activity (W912BU-21-C-0007). AIR FORCE Busek Co. Inc., Natick, Massachusetts, has been awarded a $20,335,186 cost-plus-fixed-fee contract for development of a 1-2 kW Hall Thruster system for a near-term space experiment. This contract provides a contract vehicle the Air Force Research Laboratory, Aerospace Systems and Space Propulsion Division can use to address technical needs for next-generation strategic, tactical and spacecraft propulsion systems. Work will be performed in Natick, Massachusetts, and is expected to be completed Nov. 25, 2023. Fiscal 2021 research, development, test and evaluation funds in the amount of $2,559,980 are being obligated at the time of award. The Air Force Test Center, Edwards Air Force Base, California, is the contracting activity (FA9300-21-C-6001). DEFENSE LOGISTICS AGENCY Epic Aviation LLC, Salem, Oregon, has been awarded a maximum $11,263,200 fixed-price with economic-price-adjustment contract for jet fuel. This was a competitive acquisition with three responses received. This is an 18-month base contract with one six-month option period. Locations of performance are California and Oregon, with a May 31, 2022, performance completion date. Using customer is Air National Guard. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE605-21-D-4527). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2427044/source/GovDelivery/
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June 3, 2019 | International, C4ISR
Air Force awards $20M contract for new common ground system
By: Nathan Strout The Air Force is one step closer to the creation of a new common platform for satellite command and control. The Air Force's Space and Missile Systems Center Braxton Technologies of Colorado Springs a $20 million contract May 17 to begin prototyping and integrating the new Enterprise Ground Services (EGS). The Air Force announced the deal in a May 31 press release. The purpose of EGS is to develop a common ground system and end user experience for all of the Air Force's upcoming satellite programs. Today, most military satellites have custom-built ground systems. Not only can that be expensive, it also makes it difficult for end users to adapt to new systems and for ground systems to communicate with each other. The new architecture will still allow for flexibility among the various space systems, as individual systems will need to be tailored to their specific mission requirements. The goal of EGS is to ensure all those space systems are built on a common base with similar end user experiences. “We are excited to embark on this partnership which will enhance our ability to drive speed in our processes, to deliver capabilities to support the warfighters, and develop innovative solutions that add resiliency to fight and win in a war that extends into space,” Joshua Sullivan, material leader for EGS, said in a release. “This contract will allow SMC and Air Force Space Command to concentrate resources to provide the most secure, effective, and interoperable tactical command and control experience to mission partners across the Air Force space enterprise.” The $19 million Small Business Innovative Research contract awarded to Braxton Technologies has a ceiling of $100 million. The work is expected to be completed by May 10, 2024. The Braxton Technologies award follows up on a $655,000,000 contract awarded to Engility Corp. in January to provide engineering, development, integration and sustainment services supporting the Ground System Enterprise and the eventual transition to Enterprise Ground Services. That work is expected to be completed January 31, 2026. https://www.c4isrnet.com/c2-comms/satellites/2019/06/02/air-force-awards-20m-contract-for-new-common-ground-system