April 18, 2024 | International, Land
True Velocity sues Sig Sauer, alleging stolen trade secrets
True Velocity is suing Sig Sauer, alleging it stole trade secrets used in the weapon design the Army chose for its Next-Generation Squad weapon.
November 4, 2019 | International, Naval
SECNAV: Ford Issues Due To Cost Cap, Explains Timeline
By Rich Abott |
The Secretary of the Navy today said the cost cap on the first Ford-class aircraft carrier helped lead to problems resulting in delays to the advanced weapons elevators (AWEs) and explained the government's issues and changing strategy with the shipbuilder.
Secretary of the Navy Richard Spencer said on Wednesday at a Heritage Foundation press roundtable that the Navy and shipbuilder/AWE builder Huntington Ingalls Industries [HII] planned to build a test elevator site, similar to the electromagnetic advanced landing system (EMALS) located in Lakehurst, N.J.
The Navy has used Joint Base McGuire-Dix-Lakehurst to test the General Atomics advanced arresting gear (AAG) and EMALS hundreds of times before testing them on the first new carrier, the USS Gerald R. Ford (CVN-78).
“Then we had the cost cap come in. And as [HII president and CEO] Mike Petters can say, you know fine, the cost cap comes in and no one builds the land site elevator. We had to cut costs somewhere. Sometimes we're our own worst enemy,” Spencer said.
In February, the Navy said it would start building the AWE land-based test site, after the fact, in Philadelphia (Defense Daily, Feb. 20).
Spencer said he thinks about it and wonders if anyone was expecting there to be second and third order effects of a cost cap.
“You don't get anything for free and you're not going to drive quality by cost cap. We have to start thinking differently when we go to cost control.”
Spencer also further illuminated the Navy's work with HII on the elevators. Last week, he strongly criticized the company after delays on the AWEs, saying the Navy's faith and confidence with HII senior management on the project were very low (Defense Daily, Oct. 25).
On Monday, Assistant Secretary of the Navy for Research, Development and Acquisition James Geurts said the Navy-HII team's output on the elevators has been much better in the last few months and he was cautiously optimistic on progress of the Ford elevators (Defense Daily, Oct. 29).
Spencer said in fall 2018 the Navy was finalizing the HII elevator plan. The company gave him a chart that said all 11 AWEs would be tested and certified by the end of the planned post-shakedown availability (PSA), which was then planned for July 15.
He said HII management reported high confidence of this timeline while Naval Reactors told him due to throttle and bearing issues the PSA would likely be pushed into September or October, “so I had more margin there. Did I feel confident? Completely confident.”
Then, in January, Spencer said he made a bet with President Trump that the AWEs would be finished with the PSA or he could be fired (Defense Daily, Jan. 8).
Spencer explained this was meant to rally the shipbuilders.
“What we weren't seeing down there was the spring in the step of the people on the waterfront, to be very frank with you. It was business as usual. So we said ok, here's a rally point, we're going to commit to this.”
However, in May 2019 he said HII management “goes oops, here we are, elevators aren't going to be ready until the end of 2020, possibly 2021. And that's when I went, do they really know what they're doing?”
Spencer called that a moment of inflection and called Thomas Fargo, chairman of the board of HII, asking if the board knew what was going on with management “because out trust and confidence on this specific project of the elevators has eroded significantly.”
While Spencer said Fargo said yes, there were continued frustrations on the government side.
“That's when Hondo [Geurts] and I said let's get a tiger team down there and let's take this over as the general contractor and HII can sub to us. And that's basically what's happened this last 3 months.”
Spencer said he went to the president and, after explaining the situation, was told “it's a complex system, keep knocking down the dragons.”
When asked if these lessons would apply to future ships, Spencer said the Navy wants to avoid a cost cap for the lead ship in a new class like upcoming guided-missile future frigate, FFG(X).
“We have to have an open discussion on first of class. Now, these are proven designs so it's going to be a little different, but we are adjusting it here and there and yes we should expect some hiccups,” he continued.
“Expectation management, I think, is key.”
Going forward, Spencer argued perhaps the Navy should make requirements for ships more flexible. He compared the Navy's process to the airline industry, which requires an airplane that can fit a certain number of people to transport them a certain amount of miles and has few change orders, then examines the options.
However, the government has shrunk the competitive base so far that contractors agree to following requirements but only if the government takes 60 to 100 percent of the risk.
“In some cases, you'd love to say should we change requirements to requests? Because if in fact you're a shipbuilder, why should I definitively lock you in if you have better ideas? Where is the flow to say if you want to get here you might want to consider this, which his 80 percent of the solution versus I will drive to 100% of your solution but the cost is going to be up here?”
Spencer said he understands it is difficult to change requirements because they serve a definite purpose but wondered at what cost and percent mission capability can the government make a compromise compared to the current inflexibility.
Relatedly, Spencer said he has “medium confidence” that a recent $197 million reprogramming request to Congress to fund more Ford fixes will be enough, simply because “first of classes is tough.”
“I'd be remiss if I said that was the last, to be very frank. I'd rather have the option to say we're going to come for more than saying no we're capped off now. I feel good on what we're finally learning on the end of this birthing process,” Spencer said.
https://www.defensedaily.com/secnav-ford-issues-due-cost-cap-might-need-money/navy-usmc/
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October 1, 2020 | International, Land, C4ISR, Security
Secretive, never profitable Palantir makes its market debut
Frank Bajak, The Associated Press BOSTON — Seventeen years after it was born with the help of CIA seed money, the data-mining outfit Palantir Technologies is finally going public in the biggest Wall Street tech offering since last year's debut of Slack and Uber. Never profitable and dogged by ethical objections for assisting in the Trump administration's deportation crackdown, Palantir has forged ahead with a direct listing of its stock, which is set to begin trading Wednesday. In its stock offering, the company isn't selling newly minted shares to raise money; it's simply listing existing shares for public trading. The low-key strategy may not generate the enthusiasm many technology offerings do. But it's in character for a secretive company long reliant on spies, cops and the military as customers — and whose founders are holding onto voting control of the company. The big question for both investors and company management: Can Palantir successfully transition from a business built on the costly handholding of government customers to serving corporate customers at scale? The company is a hybrid provider of software and consulting services that often embeds its own engineers with clients. Analysts say its future depends on selling multinationals on its tools for gathering disparate data from an ever-expanding data universe and using artificial-intelligence technology to find previously undetectable patterns. Those can theoretically guide strategic decisions and identify new markets much as they have aided in tracking terrorists and sorting military intelligence. The company sets itself apart from most U.S. technology providers, and just moved its headquarters to Denver from Silicon Valley. Palantir colors itself patriotic and belittles other tech firms that won't unquestionably support U.S. dominance in war fighting and intelligence. “Our software is used to target terrorists and to keep soldiers safe,” CEO Alex Karp wrote in a letter accompanying Palantir's offering prospectus. While Karp acknowledged the ethical challenge of building software that “enables more effective surveillance by the state,” Palantir's prospectus touts its work helping U.S. soldiers counter roadside bombings and fight the Islamic State group. The iconoclastic entrepreneur and PayPal co-founder endorsed President Donald Trump in 2016, worked on his transition team and holds the largest chunk of Palantir stock. Thiel already exerts tremendous power from the board of Facebook, which dominates global media and seeks to create a digital currency. In its IPO prospectus, Palantir paints a dark picture of faltering government agencies and institutions in danger of collapse and ripe for rescue by a “central operating system” forged under Thiel's auspices. As the offering is structured, Thiel will be the dominant voice among the Palantir co-founders who will retain voting control. “Is that someone who you want deciding how a component of the (national) security apparatus is designed?” asked New York University business professor Scott Galloway. “If you believe that power corrupts and checks and balances are a good idea, this is just from the get-go a really bad idea.” Earlier in September, BuzzFeed reported that Thiel hosted a known white nationalist, Kevin DeAnna, at a 2016 dinner party, citing emails it obtained and published whose authors refused to talk to the online news outlet. Thiel declined through a spokesman to discuss the report with The Associated Press. Critics say he shares the blame for Facebook's incomplete removal of toxic disinformation disseminated by the pro-Trump far-right fringe. Then there are Palantir's fundamentals, which Galloway considers lousy. The company has just 125 customers in 150 countries, including Airbus, Merck, Credit Suisse and the Danish National Police. Slightly less than half its 2019 revenues were from government agencies, and three clients — which Palantir did not name — accounted for almost a third of revenues. “They're massively unprofitable and they've never been able to figure it out,” Galloway said, noting that it took Google three years to earn a profit, and Amazon seven. Over a much longer span, Palantir has accumulated $3.8 billion in losses, raised about $3 billion and listed $200 million in outstanding debt as of July 31. Palantir, named for the mystical all-seeing stones from Tolkien's “Lord of The Rings,” has recently been deepening its relationship with Uncle Sam, including winning a modest contract early in the COVID-19 pandemic for helping the White House gather data on the virus' impact. Senior emerging technology analyst Brendan Burke of Pitchbook says he isn't worried that Thiel's association with Trump will hurt the company if Trump loses the election. “The political connections don't appear to be the main driver of their recent substantial contract wins,” he said, although he noted that government contracts can be more volatile than corporate ones, where Palantir's foothold is less firm. Palantir offers two software platforms. Foundry is designed to link disparate and largely incompatible data sources into a central operating system. It's the company's primary hope for broadening its business. An earlier product, Gotham, has been used by defense and intelligence analysts and police departments to identify patterns deep within datasets. But the value of “predictive policing” tools developed with the platform have been questioned for their potential to unfairly target people of color. The New Orleans and New York City police departments, once customers, have used it. A 2017 research paper by University of Texas sociologist Sarah Brayne, who studied the Los Angeles Police Department's use of Gotham, found the software could lead to a proliferation of unregulated personal data collected by police from commercial and law enforcement databases. On Monday, Amnesty International issued a briefing that says Palantir is failing to conduct human rights due diligence around its contracts with Immigration and Customs Enforcement, calling it “deeply ironic” that the company crows about its determination not to work with regimes like China that abuse human rights. Palantir's ICE contracts involve the maintenance and improvement of two products used in deportation raids. One of them, its web-based Falcon tool, has enhanced data accessible to investigators “involving the illegal movement of people into, within, and out of the United States,” according to documents obtained by The Associated Press, including court records, and by the nonprofit Electronic Privacy Information Center in a freedom-of-information request. Palantir has acknowledged in its SEC filing that “unfavorable coverage in the media” and from social activists could hurt its business. It also says its contractual obligations might prevent it from being able to defend its actions publicly, although it recently named a former Wall Street Journal reporter to its board. Negative publicity over ICE contracts may also have hurt company recruitment on college campuses. https://www.defensenews.com/industry/2020/09/30/secretive-never-profitable-palantir-makes-its-market-debut/
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November 12, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
Contract Awards by US Department of Defense - November 12, 2020
DEFENSE MICROELECTRONICS ACTIVITY Globalfoundries U.S. 2 LLC, Hopewell Junction, New York, has been awarded a ceiling increase of $400,000,000 under modification P00068 to previously awarded contract HQ0727-16-C-0001 for access to leading edge, current and legacy microelectronics and trusted processes for the Department of Defense and other federal agencies. Increase in interest for leading edge technology and lifetime orders for end of life technology initiated the need for this ceiling increase. The modification brings the total cumulative face value of the contract to $1,114,632,911 from $714,632,911. Work will be performed at Burlington, Vermont; East Fishkill, New York; and Malta, New York, with an expected completion date of March 31, 2021. The contract is being incrementally funded and no funds are being obligated at time of award. The Defense Microelectronics Activity, McClellan, California, is the contracting activity. NAVY AgustaWestland Philadelphia Corp., Philadelphia, Pennsylvania, is awarded a $171,047,763 modification (P00006) to previously awarded firm-fixed-price contract N61340-20-C-0007. This modification exercises options for the production and delivery of 36 TH-73A aircraft in support of the Advanced Helicopter Training System program. Work will be performed in Philadelphia, Pennsylvania (87%); Mineral Wells, Texas (5%); and various locations outside the continental U.S. (8%), and is expected to be completed in December 2022. Fiscal 2021 aircraft procurement (Navy) funds in the amount of $171,047,763 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. J. Walter Thompson U.S.A. LLC, doing business as Wunderman Thompson, Atlanta, Georgia, is awarded an $80,056,529 modification to previously awarded firm-fixed-price contract M95494-19-C-0020. This modification exercises Option Period One to furnish supplies and services to enhance the Marine Corps' recruiting efforts. These services include a full range of services from the development of a tactical advertising strategy to the production of a wide-range of advertising formats (e.g., television, radio, print media, internet and direct marketing). Work will be performed in Atlanta, Georgia, with an expected completion date of December 2021. Fiscal 2021 operation and maintenance (Marine Corps) funds in the amount of $80,056,529 are obligated at time of award and will expire at the end of the current fiscal year. The Marine Corps Installations Command Contracting Office, Arlington, Virginia, is the contracting activity. Honeywell International Inc., Tempe, Arizona, is awarded a $72,944,708 for a long-term, firm-fixed-priced requirements contract for the repair of six weapon repairable assemblies in support of the V-22 aircraft. This contract includes a five-year base period with no options. Work will be performed in Torrance, California (44%); Tucson, Arizona (35%); San Diego, California (15%); and Tempe, Arizona (6%). Work is expected to be completed by November 2025. Annual working capital funds (Navy) will be obligated as individual task orders are issued and funds will not expire at the end of the current fiscal year. One firm was solicited for this non-competitive requirement under authority 10 U.S. Code 2304 (c)(1), with one offer received. The Naval Supply Systems Command, Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-21-D-XP01). Raytheon Co., El Segundo, California, is awarded a $53,440,000 modification (P00004) to previously awarded fixed-price-incentive-fee contract N00019-20-C-0001. This modification exercises an option to procure 16 AN/APG-79(V)4 radar systems. Additionally, this modification includes software, obsolescence management, engineering support and associated technical, financial and administrative data necessary for retrofit integration into the F/A-18C/D aircraft for the Marine Corps. Work will be performed in Forest, Mississippi (41.1%); El Segundo, California (32.6%); Andover, Massachusetts (18.3%); and Dallas, Texas (8%), and is expected to be completed in June 2022. Fiscal 2021 aircraft procurement (Navy) funds in the amount of $53,440,000 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. Vigor Marine LLC, Portland, Oregon, is awarded a $24,049,402 modification to previously awarded contract N00024-19-C-4447 to support USS Chosin (CG 65) extended dry-docking selected restricted availability. Work will be performed in Seattle, Washington, and is expected to be complete by October 2021. Fiscal 2021 operation and maintenance (Navy) funding in the amount of $24,049,402 will be obligated at the time of award and will expire at the end of the current fiscal year. The Puget Sound Naval Shipyard and Intermediate Maintenance Facility, Everett, Washington, is the contracting activity. AIR FORCE General Atomics Aeronautical Systems Inc., Poway, California, has been awarded an $81,866,402 cost-plus-fixed-fee and firm-fixed-price modification (P00014) to contract FA8620-18-C-2009 for the U.K. MQ-9B Protector program. This modification provides for the design, development, integration and component-level testing of additional capabilities being added to the baseline program. Work will be performed in Poway, California, and is expected to be completed Aug. 31, 2021. Total cumulative face value of the contract is not-to-exceed $174,889,865. Foreign Military Sales funds in the amount of $71,563,692 are being obligated at the time of award. The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. L-3 Communications Integrated Systems, Greenville, Texas, has been awarded a not-to-exceed $24,500,078 cost-plus-fixed-fee undefinitized contract action for procurement of Group B material and the Ground System Integration Lab. Work will be performed in Greenville, Texas, and is expected to be completed March 2024. This contract involves 100% Foreign Military Sales (FMS). This award is the result of a sole-source acquisition. FMS funds in the amount of $14,006,934 are being obligated at the time of award. The 645th Aeronautical Systems Group, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8620-19-F-4872 P00005). DEFENSE LOGISTICS AGENCY Baxter Healthcare Corp., Deerfield, Illinois, has been awarded a maximum $40,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for infusion pumps and accessories. This was a competitive acquisition with 105 offers received. This is a five-year contract with no option periods. Location of performance is Illinois, with a Nov. 11, 2025, ordering period end date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2021 through 2026 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D1-21-D-0001). Cummins Inc., Commercial and Government Entity, Memphis, Tennessee, has been awarded an estimated $24,869,181 fixed-price with economic-price-adjustment for multiple weapon systems program support. 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 two-year base contract with four two-year option periods. Location of performance is Tennessee, with a Nov. 11, 2022, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2021 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7LX-21-D-0007). ARMY Tutor Perini Corp., Sylmar, California, was awarded a $25,998,795 firm-fixed-price contract for renovation of the Cadet Field House at the U.S. Air Force Academy. Bids were solicited via the internet with five received. Work will be performed in Colorado Springs, Colorado, with an estimated completion date of Nov. 24, 2022. Fiscal 2021 operation and maintenance (Air Force) funds in the amount of $25,998,795 were obligated at the time of the award. The U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-21-C-0004). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2413459/