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  January 9, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Contract Awards by US Department of Defense - January 08, 2020

  DEFENSE LOGISTICS AGENCY Aurora Industries,* Camuy, Puerto Rico, has been awarded a maximum $53,594,133 modification (P00008) exercising the first one-year option period of a one-year base contract (SPE1C1-19-D-1128) with three one-year option periods for coats and trousers. This is a firm-fixed price, indefinite-delivery/indefinite-quantity contract. Location of performance is Puerto Rico, with a Jan. 10, 2021, performance completion date. Using military services are Army and 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. AIR FORCE BAE Systems Information and Electronic Systems Integration Inc., San Diego, California, has been awarded a $49,620,000 indefinite-delivery/indefinite-quantity modification (P00026) to previously awarded FA4600-12-D-0002 for additional Air Vehicle Planning System (APS) support. The contract modification is for a ceiling increase to allow the purchase of continued maintenance and sustainment activities, ongoing development activities, increased onsite support requirements and required modifications to APS for new and modified weapons. Work will be performed at Offutt Air Force Base, Nebraska; Bellevue, Nebraska; and San Diego, California, and is expected to be completed by Jan. 31, 2024. The total cumulative face value of the contract is $195,000,826. Fiscal 2019 and 2020 research, development, test and evaluation funds; and fiscal 2020 operations and maintenance funds are being used. No funds are being obligated at the time of award. The 55th Contracting Squadron, Offutt Air Force Base, Nebraska, is the contracting activity. Kapsuun Group LLC, Lorton, Virginia, has been awarded a $14,535,027 firm-fixed-price contract for A4/A6 staff support services. Work will be performed at Shaw Air Force Base, South Carolina, and is expected to be complete by July 9, 2025. This award is the result of direct award acquisition with one offer being received. Fiscal 2020 operations and maintenance funds in the amount of $1,719,657 are being obligated at the time of award. The Air Combat Command's Acquisition Management Integration Center, Langley Air Force Base, Virginia, is the contracting activity (FA4890-20-C-0002). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2052857/source/GovDelivery/

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  March 16, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  How COVID-19 Could Change The A&D Supply Chain

  Michael Bruno The COVID-19 outbreak is the biggest punch to the gut commercial aviation has taken since the Sept. 11, 2001, terrorist attacks. And coming on the heels of the Boeing 737 MAX crisis, Airbus and Boeing widebody production rate cuts, U.S. trade wars and the flight-shaming movement in Europe, the coronavirus emergency is challenging the aerospace manufacturing sector and its global supply chain. Is the historic upcycle of commercial aircraft orders over? Will orders be canceled and deferred? Will business aviation go out of favor? Only time will tell, but it has been interesting to hear what aerospace and defense (A&D) executives are worrying about. First, lost revenue from disrupted operations in China is not among their worries. Practically no one in A&D manufacturing has revised their 2020 financial forecasts—provided in January or February—because of COVID-19 alone. “To date, we have no reported cases of our employees having contracted the virus, and the direct impact to our trading activities has been minimal,” Senior Plc CEO David Squires said March 2. Likewise, GE CEO Larry Culp did not change the company's financial outlook because COVID-19 was already cited in a forecast given last month. “In our view, in all likelihood it is going to be temporary, but it doesn't mean it is going to disappear tomorrow,” Culp said at a March 4 shareholder briefing. To be sure, some OEMs and suppliers with Chinese operations had to shut down in recent weeks due to COVID-19. But those factories are back up, and the impact to revenue was limited. For instance, only 20 of Triumph Group's roughly 5,000 active suppliers are located in China or South Korea. All 20 remain operational, and no supply chain interruptions have occurred. On the supply side, the glancing blow could have a lot to do with the fact that not much in Western aerospace is sourced in China. According to U.S. Commerce Department data, the U.S. imports just $1.1 billion annually in aircraft, spacecraft and related parts. What is more, that figure has been dropping since 2016—before the U.S.-China trade war—and was expected to fall off a cliff for 2019 and 2020 regardless of the “Phase One” trade deal truce. China always was a twofold market for U.S. aerospace: Sell parts and services to existing Western-supplied fleets there, and partner for local production of nonproprietary parts and systems for emerging Chinese fleets. But China is ramping up efforts to get its own fleet into operation and is pairing with Russian suppliers more often. Any growth in overall aerospace trade likely would have to come from a jump in Chinese orders of Airbus or Boeing airliners, which was not widely expected in the wake of the Jan. 16 trade truce and is not anticipated now after the recent plummet in Chinese air traffic. Although collapsing demand worldwide for air travel could have a devastating effect on A&D manufacturing and supply, executives do not consider it likely. COVID-19 quickly turned into a short, sharp shock to the system, but industry leaders see the same underlying macro conditions driving long-term growth. Chief among them: expanding middle classes worldwide that spend more discretionary funds traveling by air for leisure. During the 2020 Aviation Summit in Washington, new Collins Aerospace President Stephen Timm was asked if the airliner-customer landscape could look a lot different in coming years due to the scare. “Frankly, we're going to see differences,” Timm said. “This will be a blip—a serious blip that we have to deal with today—but compared with the macro aerospace industry, we're in a really good place.” Where do industry insiders see change coming to the supply chain? For one thing, COVID-19 could help deepen resistance to business travel, said some attending Aviation Week's Annual Aerospace Raw Materials and Manufacturers Supply Chain Conference on March 9-12. That would exacerbate the ongoing drop in demand for widebodies. Still, the biggest change could come in accelerating a budding shift in A&D supply from globalization to regionalization. Executives and consultants at both the Wharton Aerospace Conference on Feb. 29 and Aviation Week's supply chain event discussed how COVID-19 cements a belief that just-in-time global supply chains are too risky and not worth the lower cost anymore. Instead, they look to capitalize on aerospace manufacturing hubs in Asia, Europe-North Africa and North America to supply themselves. The trend could start with aerostructures for future single-aisle airliners, especially as composite materials are increasingly incorporated. “From a colocation strategy,” says one supplier executive, “you will see it in the next-gen airplanes.” https://aviationweek.com/aerospace/manufacturing-supply-chain/how-covid-19-could-change-ad-supply-chain

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  May 25, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Securing technological superiority requires a joint US-Israel effort

  By: Bradley Bowman   The United States is now engaged in an intense military technology competition with the Chinese Communist Party. The ability of U.S. troops to deter and defeat great power authoritarian adversaries hangs in the balance. To win this competition, Washington must beef up its military cooperative research and development efforts with tech-savvy democratic allies. At the top of that list should be Israel. Two members of the Senate Armed Services Committee understand this well. Sens. Gary Peters, D-Mich., and Tom Cotton, R-Ark., introduced S 3775, the “United States-Israel Military Capability Act of 2020,” on Wednesday. This bipartisan legislation would require the establishment of a U.S.-Israel operations-technology working group. As the senators wrote in a February letter to Secretary of Defense Mark Esper, the working group would help ensure U.S. “warfighters never encounter a more technologically advanced foe.” Many Americans may be surprised to learn that they can no longer take U.S. military technological superiority for granted. In his new book, “The Kill Chain,” former Senate Armed Services Committee staff director Chris Brose notes that, over the last decade, the United States loses war games against China “almost every single time.” To halt this trend, the Pentagon must shift its ongoing modernization efforts into high gear. Early cooperative R&D with the “Startup Nation” can help in this regard. Israel is one of America's closest and most technologically advanced allies. The country boasts an “innovative and agile defense technology sector” that is a “global leader in many of the technologies important to Department of Defense modernization efforts,” as the legislation notes. Some may deem the working group unnecessary, citing the deep and broad cooperation that already exists between the United States and Israel. But, as the legislation explains, “dangerous United States military capability gaps continue to emerge that a more systematic and institutionalized United States-Israel early cooperative research and development program could have prevented.” Consider the fact, for example, that the Pentagon only last year acquired for U.S. tanks active protection systems from Israel that had been operational there since 2011. Consequently, U.S. soldiers operated for years in tanks and armored vehicles around the world lacking the cutting-edge protection Washington could have provided against missiles and rockets. That put U.S. soldiers in unnecessary risk. Such examples put the burden of proof on those who may be tempted to reflexively defend the status quo as good enough. Given the breakneck speed of our military technology race with the Chinese Communist Party, it's clear the continued emergence of decade-long delays in adopting crucial technology is no longer something we can afford. One of the reasons for these delays and failures to team up with Israeli partners at the beginning of the process is that U.S. and Israeli defense suppliers sometimes find it difficult to secure Washington's approval for combined efforts to research and produce world-class weapons. Some requests to initiate combined U.S.-Israel R&D programs linger interminably in bureaucratic no-man's land, failing to elicit a timely decision. Confronted by deadly and immediate threats, Israel often has little choice but to push ahead alone with unilateral R&D programs. When that happens, the Pentagon misses out on Israel's sense of urgency that could have led to the more expeditious fielding of weapons to U.S. troops. And Israel misses out on American innovation prowess as well as on the Pentagon's economy of scale, which would lower unit costs and help both countries stretch their finite defense budgets further. Secretary Esper appears to grasp the opportunity. “If there are ways to improve that, we should pursue it,” he testified on March 4, 2020, in response to a question on the U.S.-Israel working group proposal. “The more we can cooperate together as allies and partners to come up with common solutions, the better,” Esper said. According to the legislation, the working group would serve as a standing forum for the United States and Israel to “systematically share intelligence-informed military capability requirements,” with a goal of identifying capabilities that both militaries need. It would also provide a dedicated mechanism for U.S. and Israeli defense suppliers to “expeditiously gain government approval to conduct joint science, technology, research, development, test, evaluation, and production efforts.” The legislation's congressional reporting requirement would hold the working group accountable for providing quick answers to U.S. and Israeli defense supplier requests. That's a benefit of the working group that will only become more important when the economic consequences of the coronavirus put additional, downward pressure on both defense budgets. Once opportunities for early cooperative U.S.-Israel R&D are identified and approved, the working group would then facilitate the development of “combined United States-Israel plans to research, develop, procure, and field weapons systems and military capabilities as quickly and economically as possible.” In the military technology race with the Chinese Communist Party, the stakes are high and the outcome is far from certain. A U.S.-Israel operations technology working group represents an essential step to ensure the United States and its democratic allies are better equipped than their adversaries. Bradley Bowman is the senior director of the Center on Military and Political Power at the Foundation for Defense of Democracies. https://www.defensenews.com/opinion/commentary/2020/05/22/securing-technological-superiority-requires-a-joint-us-israel-effort/