State Department approves $85M missile sale to Chile

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  May 27, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Downward trend: Southeast Asian countries cut defense spending

  By: The Associated Press BEIJING — A study says Southeast Asian countries are cutting defense spending as a result of the economic crisis brought on by the coronavirus outbreak, potentially opening up room for China to further assert its claims in the region. Aristyo Rizka Darmawan, a maritime security expert at the University of Indonesia, writes that slashing defense spending is seen as a relatively easy way to cut costs when countries are facing pressure on their budgets. “Indonesia, for example, has announced it will slash its defense budget this year by nearly US$588 million. Thailand has likewise reduced its defense allocation by $555 million. Malaysia, Vietnam, and the Philippines all face similar pressure,” Darmawan wrote in the online journal of the Lowy Institute, an Australian think tank. “Less defense spending will invariably mean less patrols at sea.” China recently announced it will increase its defense spending by 6.6 percent in 2020, despite a major downturn in the country's economic growth due to the pandemic. The increase is the lowest in years, but will still allow China to expand its ability to enforce its territorial claims in the South China Sea and grow its military presence in the Western Pacific and Indian oceans. Another key priority is maintaining a credible threat against Taiwan, the self-governing island democracy that China considers its own territory, to be brought under its control by military force if necessary. China has maintained its presence in the South China Sea throughout the virus outbreak. Recent frictions include Chinese ships shadowing Malaysian mineral exploration operations and the sinking of a Vietnamese fishing boat by a Chinese maritime security vessel. However, China's foreign minister dismissed claims that the country is exploiting the coronavirus outbreak to expand its regional footprint, labeling such accusations as “sheer nonsense.” State Councilor and Foreign Minister Wang Yi told reporters at a news conference on Sunday that China is cooperating closely on anti-virus efforts with Southeast Asian countries, several of whom have overlapping territorial claims with China in the strategically vital waterway. While China has long been stepping up its presence in the region, Wang said other countries — likely meaning the United States and its allies — have been creating instability with military flights and sea patrols. “Their ill-intentioned and despicable moves are meant to sow discord between China and [Southeast Asian countries] and undermine the hard-won stability in the region,” Wang said. https://www.defensenews.com/global/asia-pacific/2020/05/26/downward-trend-southeast-asian-countries-cut-defense-spending/

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  August 10, 2020 | International, Naval

  Major Submarine Contractor Drops Navy Missile Tube Biz

  The disclosure comes as the Pentagon has been looking for ways to backstop key parts of its industrial base as supply chains slowed due to the COVID epidemic. By PAUL MCLEARY WASHINGTON: One of the Navy's primary suppliers of missile tubes for its nuclear submarines is planning to walk away from the military business, a move that will drop the number of domestic companies capable of doing the work to two at a time when the service is in a scramble to ramp up its sub-building efforts. BWX Technologies President Rex Geveden says that the company is “not likely to pursue” any more Navy business and will repurpose a factory in Indiana that makes the components once the next set of deliveries of missile tubes wrap up in 2022. The Navy work “just doesn't have the margin profile that we want to see in the business,” Geveden said in a Tuesday investor call. BWX was slated to build the missile tubes for the new Columbia subs, but prime contractor Electric Boat says it has options to replace the company in coming years. The company “works with multiple suppliers to ensure we can meet the Navy's schedule requirements on these important programs,” a spokesperson emailed. “These are Babcock Marine, BAE Systems, Precision Custom Components and BWX Technologies. BWX Technologies will complete all currently contracted work for EB by 2022.” This comes as the Pentagon has been looking for ways to bolster key parts of its industrial base as communities shut down and workers are told not to report to work or take time off, due to the COVID epidemic. In a call with reporters late last month, Navy acquisition chief James Geurts acknowledged that the service is deeply worried that such closures and slowdowns could have wide-ranging impacts on shipbuilding. “I am absolutely interested in ensuring that we don't lose large chunks of the industrial base,” he said. “Restarting an industrial base that you lose is really hard, really painful, and takes a long time. We are absolutely focused on ensuring we do not lose an industrial base because we don't have the time or resources to re-generate it later when we need it.” The winnowing of such a key part of the industrial base will place more pressure on the handful of other companies who can do this sort of work, something to which Pentagon leadership is particularly sensitive. Overall, the Navy plans to buy 12 Columbia-class submarines between 2021 and 2035, with 10 of those coming 2026 and after. In the near-term, it plans two Virginia-class subs per year between 2021 and 2026, meaning shipyards will have to pump out two to four submarines a year in the mid-2020s. The new Columbia submarines will begin being delivered to the Navy in 2030, just in time to begin replacing the Cold War-era Ohio-class subs as the Navy's leg of the nation's nuclear triad. The subs will carry 70 percent of the nation's stockpile of warheads allowed by the New Start treaty with Russia. Falling in to replace the Ohio's on time would be a critical failure for the nation's nuclear triad, as the aging ships will have next to no life left in them by the end of the decade, and leaving the sea leg of the nuclear enterprise in some jeopardy. Babcock Marine is a UK-based company, but does work on some components that are used for both the Columbia program and the UK's Dreadnaught submarines, which shares similar missile tubes with the Columbia effort. In 2018, Virginia-based BWX was forced to pay $27 million to fix welding problems on the Columbia tubes, after issues were found on a total of 44 tubes. So far, 21 of those have been fixed and 11 delivered to the Navy. Navy officials have closely tied the modernizing of the current Virginia-class subs with the building of new Columbia's, warning that since they share a base of companies who can make precision parts for nuclear-powered submarines. So any problem with one program will have knock-on effects to the other. Geurts and others have said the Navy would prioritize the health of the Columbia effort over Virginia if they had to. If the House of Representatives gets its way, however, billions more will flow into the Virginia program than the White House has called for. Last week, the House voted to fund the construction of a second Virginia-class submarine in the 2021 budget request, after the White House dropped the planned buy to one submarine in its submission. The push was led by Rep. Joe Courtney, chairman of the Seapower Subcommittee who represents the Connecticut district that's home to Electric Boat. The bill now includes $6.8 billion to produce two Virginia-class attack submarines, approximately $2.5 billion more than the White House's own request, and $2.2 billion more than the Senate's. “The budget request we received from the White House flew in the face of testimony that we've heard from Navy leaders, experts, and combatant commanders,” Courtney said in a statement. “It requested the fewest ships in over a decade, and it eliminated construction of the second Virginia-class submarine in 2021—a vessel that the Navy quickly listed as its most important unfunded priority in 2021.” https://breakingdefense.com/2020/08/major-submarine-contractor-drops-navy-missile-tube-biz

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  October 13, 2020 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

  Contract Awards by US Department of Defense – October 09, 2020

  NAVY Electric Boat Corp., Groton, Connecticut, is awarded a $327,822,562 cost-plus-fixed-fee modification to previously awarded contract N00024-20-C-2120 for lead yard support and development studies and design efforts related to Virginia class submarines. Work will be performed in Groton, Connecticut (92%); Newport News, Virginia (7%); and Newport and Quonset Point, Rhode Island (1%), and is expected to be completed by April 2021. Fiscal 2020 research, development, test and engineering (Navy) (41%); and fiscal 2020 (25%); 2019 (12%); 2014 (9%); 2017 (7%); 2015 (3%); and 2018 (3%) shipbuilding and conversion (Navy) funding in the amount of $134,585,918 will be obligated at time of award. Fiscal 2020 research, development, test and engineering (Navy) funds in the amount of $55,000,000; and fiscal 2014 shipbuilding and conversion (Navy) funds in the amount of $11,792,469 will expire at the end of the current fiscal year. This contract was not competitively procured. The statutory authority for this sole-source award is in accordance with Federal Acquisition Regulation 6.302-1(a)(2)(iii); only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. D Square LLC & AU Authum KI,* Tucson, Arizona (N62478-17-D-4018); Hawk-Niking LLC,* Wahiawa, Hawaii (N62478-17-D-4019); MACNAK-BCP JV,* Lakewood, Washington (N62478-17-D-4020); and Tokunaga Elite JV LLC,* Pearl City, Hawaii (N62478-17-D-4021), are each awarded an $80,000,000 firm-fixed-price modification to their respective previously awarded indefinite-delivery/indefinite-quantity, multiple-award, design-build/design-bid-build construction contracts for construction projects located primarily within the Naval Facilities Engineering Command (NAVFAC), Hawaii area of responsibility (AOR). The work to be performed provides for, but is not limited to, labor, supervision, tools, materials and equipment necessary to perform new construction, repair, alteration and related demolition of existing infrastructure based on design-build or design-bid-build (full plans and specifications) for infrastructure within the state of Hawaii. This modification increases the total cumulative value of the combined contracts to $178,000,000. No task orders are being awarded at this time. Work will be performed at various Navy, Marine Corps, Air Force and miscellaneous federal and other facilities in the NAVFAC Hawaii AOR and is expected to be completed by July 2022. No funds will be obligated at time of award; funds will be obligated on individual task orders as they are issued. Task orders will be primarily funded by operations and maintenance (Navy); and Navy working capital funds. The Naval Facilities Engineering Command, Hawaii, is the contracting activity. Tekla Research Inc.,* Fredericksburg, Virginia, is awarded a $24,405,000 commercial firm-fixed-price, indefinite-delivery/indefinite-quantity contract to provide test and evaluation support services for Commander, Operational Test and Evaluation Force Expeditionary Warfare Division. The contract will include a 60-month base ordering period with an additional six-month ordering period option pursuant of Federal Acquisition Regulation 52.217-8 – to extend services, which if exercised, will bring the total value to $27,000,000. The base ordering period is expected to begin November 2020, and be completed by November 2025; if the option is exercised, the ordering period will be completed by May 2026. All work will be performed in Norfolk, Virginia. Fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $2,500 will be obligated to fund the contract's minimum amount and funds will expire at the end of the current fiscal year. Individual task orders will be subsequently funded with appropriate fiscal year appropriations at the time of their issuance. This contract was competitively procured with the solicitation posted on beta.SAM.gov as a service-disabled, veteran-owned small business set-aside using commercial items procedures, with two offers received. The Naval Supply Systems Command, Fleet Logistics Center Norfolk, Contracting Department, Norfolk, Virginia, is the contracting activity (N00189-21-D-0001). ARMY SKE Support Services Gmbh, Goldbach, Germany (W912GB-21-D-0001); Sociedad Espanola De Montajes Industriales, Madrid, Spain (W912GB-21--D-0002); RCI Gulbene SIA, Gulbene, Latvia (W912GB-21-D-0003); Relyant Global LLC, Maryville, Tennessee (W912GB-21-D-0004); Tartu Bryan JV, Colorado Springs, Colorado (W912GB-21-D-0005); Infes UAB, Vilnius, Lithuania (W912GB-21-D-0006); and Mitnija UAB, Kaunas, Lithuania (W912GB-21-D-0007), will compete for each order of the $49,950,000 firm-fixed-price contract to provide design-build and design-bid-build construction services in Latvia and Lithuania. Bids were solicited via the internet with 24 received. Work locations and funding will be determined with each order, with an estimated completion date of Oct. 8, 2025. U.S. Army Corps of Engineers, Europe District, is the contracting activity. DEFENSE LOGISTICS AGENCY Bren-Tronics Inc.,* Commack, New York (SPE7LX-21-D-0009, $14,817,852); and Mathews Associates Inc.,** Sanford, Florida (SPE7LX-21-D-0010, $9,758,182), have each been awarded a firm-fixed-price, indefinite-quantity contract under solicitation SPE7MX-20-R-0106 for lithium-ion batteries used in multiple communications platforms. These were competitive acquisitions with five responses received. These are three-year base contracts with two one-year option periods. Locations of performance are New York and Florida, with an Oct. 8, 2023, performance completion date. Using military services are Army, Navy and Marine Corps. Type of appropriation is fiscal 2021 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio. Belleville Shoe Co.,* Belleville, Illinois, has been awarded a maximum $9,939,099 modification (P00004) exercising the first one-year option period of one-year base contract (SPE1C1-20-D-1208) with three one-year option periods for temperate weather men's and women's coyote boots. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Illinois, with an Oct. 10, 2021, ordering period end date. Using military service is Air Force. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. U.S. SPECIAL OPERATIONS COMMAND Arcticom LLC, Anchorage, Alaska, was awarded a $9,950,000 maximum single award, indefinite-delivery/indefinite-quantity contract (H92240-21-D-0002) with an ordering period of up to five years for contractor-provided non-personal services for Basic Underwater Demolition/SEAL (BUD/S) training support. Fiscal 2021 operations and maintenance funds in the amount of $2,500 are being obligated at the time of award. The work will be performed in various locations inside and outside the U.S. and may continue through fiscal 2025 depending on timing of orders placed by Naval Special Warfare Command (NSWC). The contract was awarded competitively with four proposals received. NSWC, Coronado, California, is the contracting activity. * Small business **Woman-owned small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2378667/source/GovDelivery/