August 13, 2020 | International, Naval
By PAUL MCLEARYon August 12, 2020 at 4:04 PM
WASHINGTON: A top Navy official today tried to clarify a Pentagon information paper leaked last week which warned that “at least one” of the seven shipyards that churns out ships for the Navy could close unless Congress handed over billions more to the service.
As part of an $11 billion package the Pentagon is requesting from Congress to mitigate the impact of COVID-19 on the defense industry, the Navy is requesting $4.7 billion in part to ward off the chances “at least one” of the big seven shipyards shutting down. The paper, which has been delivered to lawmakers on Capitol Hill, also warned of over 100,000 lost jobs across shipyards and factories that make aircraft and other weapons for the military.
But the Navy's top acquisition executive told reporters today that the wording continued in the paper might leave too much out.
“The words could be taken out of context,” James Geurts said. “There probably should be the word ‘temporarily' in there.” If a shipyard started to see a significant portion of its workforce test positive for COVID, “we might have to temporarily close down the shipyard for a period of time until we got it under control. Not that we would have to shut down a shipyard permanently.”
The memo contains no such caveats, however. It flatly states a shipyard could close unless the Navy gets the funding boost.
Asked where the paper came from, and who it was intended for, DoD spokesman Christopher Sherwood told me via email the department “provided informational material to our oversight committees when asked about the impacts COVID-19 has had on the Defense Industrial Base and our suppliers.”
The Navy has gone to great lengths to help its shipyards weather the COVID storm, pumping $130 billion into its supplier base this year in upfront payments, spending that is 25% higher than at this point last year.
But some yards have experienced pain keeping to schedule, with uncertain futures ahead as the Navy looks to change its fleet mix in the coming years to better compete with China and Russia.
Mark Cancian, a defense expert at the Center for Strategic and International Studies, acknowledged that all Navy shipyards “have a backlog of work, including Bath Iron Works, which was the subject of speculation about closing.” Bath, already six months behind on building seven destroyers in dock, is stumbling to the conclusion of a six-week strike by 4,300 shipbuilders which will likely make those delays even longer.
Likewise, the Mississippi-based Austal is looking at the end of the road for its contract to build dozens of aluminum Littoral Combat Ships in a few years, which would likely mark the end of the Navy's interest in buying aluminum hulls. That shipyard “would be at more risk” Cancian said.
Neither shipyard is any worse off than the others due to COVID-related shutdowns, however, making the Pentagon's point that yards could shut and require COVID relief funds to keep going, an argument that finds few adherents.
There's little doubt COVID is slowing down both ship construction and repair, “but that doesn't mean the Navy doesn't need the ships anymore,” said Bryan Clark of the Hudson Institute. “It just means everything takes longer, but it doesn't necessarily mean that the shipyards are going to close.”
Clark noted that while Bath is in a bad spot with delays to its destroyer work that will be compounded by the strike, the Navy still needs it to build destroyers in the future, since relying on Huntington Ingalls as the nation's only shipyard that can build the ships is too risky.
Add to that the likelihood that the Navy will move toward buying more numerous small cruisers, unmanned ships, and smaller platforms for Marines and away from small numbers of large destroyers and amphibious ships in the future, means there will be more contracts, and work to go around later this decade.
The service is still on track to deliver its much-delayed 30 year shipbuilding plan and force structure assessment this fall, in which several options like a new class of destroyers, a new class of smaller frigates, and smaller hospital ships will all likely find their way into the plans.
July 5, 2021 | International, Land
The U.S. Army Contracting Command awarded Oshkosh Defence a $152 million contract for the Joint Light Tactical Wheeled Vehicles, trailers and associated kits, the Department of Defense announced.
April 17, 2023 | International, Land
Deliveries of the “Pansarterrängbil 300″ – as the vehicles will be called in Sweden – will begin within 2023.
May 14, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
NAVY The Boeing Co., St. Louis, Missouri, is awarded a $1,971,754,089 firm-fixed-price contract to provide non-recurring engineering associated with the Stand-off Land Attack Missile – Expanded Response (SLAM ER) obsolescence redesign effort as well as the production and delivery of 650 SLAM ER missiles in support of the government of Saudi Arabia. Work will be performed at St. Louis, Missouri (47%); Indianapolis, Indiana (37%); Pontiac, Michigan (9%); Melbourne, Florida (3%); Middletown, Connecticut (2%); and Black Mountain, North Carolina (2%). Work is expected to be complete by December 2028. Foreign Military Sales funds in the amount of $1,971,754,089 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to Federal Acquisition Regulation 6.302-4. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-20-C-0003). The Boeing Co., St. Louis, Missouri, is awarded a $656,981,421 modification (P00014) to a previously awarded firm-fixed-price contract (N00019-19-C-0016). This modification procures and delivers 467 Harpoon full rate production Lot 91 Block II missiles and support equipment for various Foreign Military Sales customers. Work will be performed at St. Louis, Missouri (30%); McKinney, Texas (28%); Toledo, Ohio (6%); Grove, Oklahoma (5%); Pontiac, Michigan (4%); Putnam, Connecticut (2%); Galena, Kansas (2%); Burnley, United Kingdom (2%); Lititz, Pennsylvania (1%); Minneapolis, Minnesota (1%); and various locations within the continental U.S. (19%). This modification procures four Block II missiles and support equipment for the government of Brazil, eight Block II missiles and support equipment for the government of Thailand, 53 Block II missiles and support equipment for the government of Qatar, 402 Block II missiles and support equipment for the government of Saudi Arabia, and support equipment for the governments of Japan, the Netherlands, India and Korea. Work is expected to be complete by December 2026. Foreign Military Sales funds in the amount of $656,981,421 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. Strategic Airborne Operations JV LLC,* Newport News, Virginia, is awarded a $146,834,175 firm-fixed-price, indefinite-delivery/indefinite-quantity contract. This contract acquires the High Endurance Electronic Warfare Jet (HEEWJ) capability. Work will be performed in Cherry Point, North Carolina (5%); and various locations within and outside the continental U.S. (95%) to be determined on individual orders. The HEEWJ capability is an offensive air support for training that provides regionally based, geographically distributed aviation with a variety of airborne threat simulation capabilities to train shipboard and aircraft weapon systems operators and aircrew to counter enemy electronic warfare and electronic attack operations in today's electronic combat environment in support of Department of the Navy, other Department of Defense (DOD) agencies, non-DOD government agencies and Foreign Military Sales customers. Work is expected to be completed in May 2024. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was competitively procured via an electronic request for proposal, and two offers were received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-20-D-0108). Q.E.D. Systems Inc., Virginia Beach, Virginia, is awarded a $16,205,606 modification to previously awarded contract N00024-15-C-4400 for specification development and execution/procurement support services in support of Chief of Naval Operations availabilities, continuous maintenance availabilities (CMAVs), inactivation CMAVs, sustainment availabilities, phased modernization availabilities, re-commissioning availabilities, continuous maintenance and emergent maintenance window of opportunity for Navy surface combatant ship classes (CG 47/DDG 51). Work will be performed in Norfolk, Virginia (53%); San Diego, California (36%); and Everett, Washington (11%). Work is expected to be complete by October 2020. No funding will be obligated at time of award. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. BAE Systems, Information and Electronic Systems Integration Inc., Greenlawn, New York, is awarded a $14,465,881 modification (P00010) to previously awarded, firm-fixed-price, indefinite-delivery/indefinite-quantity contract N00019-17-D-0006. This modification adds the requirement to procure 46 AN/UPX-41(C) digital interrogators and 10 Mode 5 change kits for the Navy, Coast Guard, the government of Japan and various countries under the Foreign Military Sales program. Work will be performed in Greenlawn, New York (80%); Austin, Texas (10%); and Manassas, Virginia (10%), and is expected to be complete by May 2023. No funds are being obligated at time of award; funds will be obligated on individual orders as they are issued. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. CACI Enterprise Solutions Inc., Chantilly, Virginia, is awarded a $13,904,377 cost-plus-fixed-fee task order modification in the four option years of the integrated business systems support services contract (N32205-19-F-1044 and P00008). Information technology services in this contract assist Military Sealift Command's business systems and ashore operations branch to manage, operate and maintain the command's business systems, as well as interfaces with the Navy Enterprise Defense Business Systems. Work under this modification will be performed in Norfolk, Virginia, and is expected to be complete by December 2023. This modification includes the remaining portion (eight months) of Option Year One as well as three 12-month options. If exercised, the cumulative value of this modification will be $13,598,409. The task order was competitively procured with proposals and four offers were received. The Naval Military Sealift Command, Norfolk, Virginia, is the contracting activity. Sikorsky Aircraft Corp., a Lockheed Martin Co., Stratford, Connecticut, is awarded an $8,954,062 modification (P00091) to previously awarded firm-fixed-price contract N00019-14-C-0050. This modification provides support for the integration and transition of Windows 10 and Server 16 into various VH-92A training devices. Work will be performed in Quantico, Virginia, and is expected to be complete by October 2022. Fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $4,667,720 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. ARMY Northrop Grumman, McLean, Virginia, was awarded a $176,471,668 modification (P00056) to contract W58RGZ-17-C-0014 to support Army special electronic mission aircraft fixed-wing life cycle services. Work will be performed in McLean, Virginia, with an estimated completion date of Aug. 31, 2020. Fiscal 2020 operations and maintenance (Army) funds in the amount of $176,471,668 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. DynCorp International LLC, Fort Worth, Texas, was awarded a $167,556,981 modification (P00057) to contract W58RGZ-17-C-0011 for support services for government-owned fixed-wing fleets performing transport aircraft missions. Work will be performed in Fort Worth, Texas, with an estimated completion date of May 31, 2021. Fiscal 2020 operations and maintenance (Army) funds in the amount of $167,556,981 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Kiewit Infrastructure South Co., Sunrise, Florida, was awarded a $7,759,000 firm-fixed-price contract for Everglades restoration. Bids were solicited via the internet with three received. Work will be performed in Miami-Dade, Florida, with an estimated completion date of Nov. 16, 2021. Fiscal 2020 civil construction funds in the amount of $7,759,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Jacksonville, Florida, is the contracting activity (W912EP-20-C-0004). Michels Corp., Brownsville, Wisconsin, was awarded a $7,066,242 firm-fixed-price contract to repair levee systems in the Missouri River Basin. Bids were solicited via the internet with four received. Work will be performed in Pender, Nebraska, with an estimated completion date of Oct. 30, 2020. Fiscal 2020 other procurement (Army) funds in the amount of $7,066,242 were obligated at the time of the award. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-20-C-0026). Qualx Corp., Springfield, Virginia,* was awarded a $7,003,493 modification (P00010) to contract W91QF0-18-F-0047 for digitization of archival materials for the Army Heritage and Education Center. Work will be performed in Carlisle, Pennsylvania, with an estimated completion date of Sept. 25, 2021. Fiscal 2020 operations and maintenance (Army) funds in the amount of $7,003,493 were obligated at the time of the award. Mission and Installation Contracting Command, Carlisle Barracks, Pennsylvania, is the contracting activity. DEFENSE LOGISTICS AGENCY NuStar Terminal Partner TX L.P., San Antonio, Texas, has been awarded a maximum $22,392,616 firm-fixed-price contract for contractor-owned, contract-operated services to receive, store and issue U.S. government-owned jet propellant thermally stable. This was a competitive acquisition with one response received. This is a four-year base contract with one five-year option period with a possible six-month extension. Location of performance is Texas, with a June 30, 2024, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE603-20-C-5006). AIR FORCE CAE USA Inc., Tampa, Florida, has been awarded a $10,544,331 firm-fixed-price modification (P00158) to contract FA8223-10-C-0013 for support of the KC-135 Aircrew Training System. This modification provides for collective bargaining agreement wage adjustments resulting from Fair Labor Standards Act and Service Contract Act – Price Adjustment, and brings the total cumulative face value of the contract to $526,529,911. Work will be performed in Altus Air Force Base, Oklahoma; Grissom Air Reserve Base, Indiana; MacDill AFB, Florida; Pittsburgh, Pennsylvania; Rickenbacker Air National Guard Base, Ohio; Scott AFB, Illinois; Fairchild AFB, Washington; Milwaukee Air National Guard Base, Wisconsin; March AFB, California; and Joint Base Pearl Harbor-Hickam, Hawaii. Work is expected to be completed by Dec. 31, 2020. Fiscal 2020 operations and maintenance funds in the amount of $10,544,331 are being obligated at the time of award. Air Force Life Cycle Management Center, Wright-Patterson AFB, Ohio, is the contracting activity. Honeywell International Inc., Phoenix, Arizona, has been award a $7,777,093 cost-plus-fixed-fee contract to research, develop, integrate, validate and demonstrate Consistent Logical Automated Reasoning for Integrated System Software Assurance (CLARISSA) for development and assessment of assurance cases. This contract provides for the research and development of technology to automate generation of assurance cases from curated evidence. Work will be performed in Phoenix, Arizona, and is expected to be completed by March 12, 2024. This award is the result of a competitive acquisition and two offers were received. Fiscal 2019 research, development, test and evaluation funds in the amount of $380,564 are being obligated at time of award. Air Force Research Laboratory, Rome, New York, is the contracting activity (FA8750-20-C-0512). (Awarded March 19, 2020) *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2185990/source/GovDelivery/