April 28, 2020 | International, Aerospace, Naval, Land, C4ISR

Storm clouds await Pentagon’s request for defense industry cash injection

WASHINGTON ― Though the Pentagon is hunting for billions of dollars in a future package to combat the coronavirus pandemic, it looks like the next massive relief bill will be swamped in a partisan fight.

The Pentagon announced it's seeking the funds to prop up the military's network of suppliers following $3 billion in new “progress payments" to increase cash flow to primary contractors and more vulnerable, smaller subcontractors. The details have yet to be disclosed as the Defense Department works through them with the White House budget office.

But last week, Senate Majority Leader Mitch McConnell, R-Ky., said he wants to “push the pause button” on the next aid package and, because Democrats aim to center it on bailouts for states hit hard by the pandemic, “move “cautiously.”

“You've seen the talk from both sides about acting, but my goal from the beginning of this, given the extraordinary numbers that we're racking up to the national debt, is that we need to be as cautious as we can be,” McConnell told reporters on April 21.

The Senate will reconvene in full on May 4 to work on coronavirus aid legislation, McConnell said Monday. It would mark the first time the chamber has been back in full since late March.

The prospects for a speedy compromise looked dim when House Speaker Nancy Pelosi, D-Calif., set herself at odds with McConnell last week, saying, “There will not be a bill without state and local” aid. Senate Minority Leader Chuck Schumer, D-N.Y., and other congressional Democrats have added pressure on McConnell by pillorying the majority leader's suggestion that states declare bankruptcy.

“Republican Senators: Raise your hand if you think your state should go bankrupt,” Schumer said in a tweet.

McConnell's negotiating stance comes as the Congressional Budget Office projected Friday that the federal budget deficit would quadruple to $3.7 trillion, driven by the coronavirus pandemic and a government spending spree on testing, health care, and aid to businesses and households.

According to the report, the 2020 budget deficit will explode after Congress passed and President Donald Trump signed four coronavirus aid bills that promise to pile more than $2 trillion onto the $24.6 trillion national debt in the remaining six months of the current fiscal year.

Meanwhile, defense hawks are warm to a defense spending boost. Senate Commerce Committee Chairman Roger Wicker, R-Miss., has voiced support for an additional cash infusion for the defense industry.

“The federal government can play a vital role in keeping military suppliers afloat,” Wicker, a senior member of the Senate Armed Services Committee, said in his weekly newsletter to supporters. “Already the Department of Defense has announced it is spending $3 billion to reimburse contractors affected by work delays and breaks in the supply chain.

“As Congress considers new relief measures, I will work to include targeted funding to ensure that suppliers get the stable cash flow and contracts they need to endure this crisis. These awards should go toward projects the military has already identified as priorities and should not break the bank."

Also last week, Sen. Tom Cotton, R-Ark., introduced legislation last week that calls for $43 billion for military infrastructure and weapons as part of a larger effort to confront China in the Indo-Pacific region. That bill also calls for $11 billion to mitigate pandemic-related cost overruns on weapons programs and $3.3 billion to mitigate COVID-19 impacts to the defense-industrial base.

But Cotton's proposal is also loaded with new weapons purchases that would prove a boon to defense firms, albeit at a slower pace than a direct cash infusion. There's an added General Dynamics/Huntington Ingalls Industries-built Virginia-class submarine; more Lockheed Martin-built F-35A jets; Boeing-built F-15EX fighter aircraft; a battery for the Terminal High Altitude Area Defense air defense system; and anti-ship/strike weapons.

Cotton's bill follows a $6.1 billion China deterrence package from the influential ranking member of the House Armed Services Committee, Rep. Mac Thornberry, R-Texas. That bill would fund an Indo-Pacific Deterrence Initiative, also favored in principal by HASC Chairman Adam Smith, D-Wash.

Observers predicted the added funding might find a way through any deadlock on a stimulus bill.

“We don't foresee stand-alone adoption but do think elements of it could be spread across different spending bills,” analyst Roman Schweizer of the Cowen Group said of Cotton's bill in a note to investors. “With Congress in full-bore debt-spending mode, defense proponents might be able to bury this money in larger packages.

The American Enterprise Institute's Mackenzie Eaglen proposed in a Defense News on Monday that the next package for the Pentagon should avoid submitting unfunded procurement priorities and also “focus on the health, safety and continuity of all the Pentagon's workforce.”

“Democrats want another stimulus, ideally on ‘shovel ready' infrastructure jobs. DoD is absolutely going to need more help in some sort of bill to keep the defense supply chain from going to the unemployed lines, or worse, gobbled up by China,” Eaglen said in an email.

“Most of defense stimulus is to prop up jobs and employment so I'd like to be optimistic and think Democrats would be very supportive.”

Democratic leaders haven't yet signaled how they're predisposed toward added defense spending in a stimulus package. However, a House Democratic aide said that scenario would invite serious opposition from the progressive wing.

Rep. Ro Khanna, D-Calif., a member of HASC and the House Progressive Caucus leadership team, previewed the messaging in this fight in a tweet on April 21 saying: “The Pentagon shouldn't get any more COVID relief money."

“A single F-35 could pay for 2,200 ventilators. 1 nuclear warhead could pay for 17 million masks,” Khanna said, adding that the Pentagon budget dwarfs the combined budgets of the Centers for Disease Control and Prevention, the National Institutes of Health, and U.S. contributions to the World Health Organization.

In the Senate, Sen. Bernie Sanders, I-Vt., “will strongly oppose no-strings-attached giveaways to the arms industry, as news reports seem to indicate are the Pentagon's likely request of Congress," said his spokesman, Keane Bhatt. "This is the time to put ordinary workers and small businesses first — not prioritize the profits of Lockheed Martin and Raytheon.”

https://www.defensenews.com/congress/2020/04/27/storm-clouds-await-pentagons-request-for-defense-industry-cash/

On the same subject

July 16, 2019 | International, Aerospace

U.S. Army Awards Lockheed Martin $492 Million Contract For High Mobility Artillery Rocket System Launchers
DALLAS, July 16, 2019 /PRNewswire/ -- Lockheed Martin (NYSE: LMT) will produce High Mobility Artillery Rocket System (HIMARS) launchers and associated hardware for the U.S. Army, U.S. Marine Corps, Romania and Poland under a $492 million contract, marking Poland's first acquisition of HIMARS launchers. The contract calls for the production and delivery of HIMARS launchers and associated equipment by 2022. The HIMARS vehicles will be produced from the ground up at Lockheed Martin's award-winning Camden, Ark., Precision Fires Center of Excellence. "Lockheed Martin is very pleased that Poland has procured its first HIMARS launchers," said Gaylia Campbell, vice president of Precision Fires/Combat Maneuver Systems at Lockheed Martin. "These new HIMARS launchers will provide unparalleled mobile firepower to light and early entry forces, and our allies can count on Lockheed Martin's ongoing support in maintaining these combat-proven capabilities." HIMARS launchers have exceeded 1.4 million operating hours and are currently demonstrating an operational reliability over six times the specified requirement. HIMARS is a lightweight mobile launcher, transportable via C-130 and larger aircraft for rapid deployment, that fires Guided Multiple Launch Rocket System (GMLRS) rockets and Army Tactical Missile System (ATACMS) missiles. HIMARS consists of a launcher loader module and fire control system mounted on a five-ton truck chassis. A specialized armored cab provides additional protection to the three crew members that operate the system. Lockheed Martin's effectiveness and reliability combined with performance, interoperability, joint coalition operations and the added value of joint munitions procurement make HIMARS a sound option for nations seeking effective precision fires option for missions. For more than 40 years, Lockheed Martin has been the leading designer and manufacturer of long-range, surface-to-surface precision strike solutions, providing highly reliable, combat-proven systems like MLRS, HIMARS, ATACMS and GMLRS to domestic and international customers. For additional information, visit our website: www.lockheedmartin.com. https://news.lockheedmartin.com/2019-07-16-U-S-Army-Awards-Lockheed-Martin-492-Million-Contract-for-High-Mobility-Artillery-Rocket-System-Launchers
March 5, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

Contract Awards by US Department of Defense - March 4, 2019
MISSILE DEFENSE AGENCY Lockheed Martin Corporation Missiles and Fire Control, Dallas, Texas, is being awarded a non-competitive hybrid contract line item numbers type (cost-plus-incentive-fee, firm-fixed-price and cost reimbursement) contract under Foreign Military Sale (FMS) cases to the Kingdom of Saudi Arabia (KSA). The total estimated value of this contract is $945,900,000. Under this undefinitized contract action, the contractor will provide Terminal High Altitude Area Defense (THAAD) FMS KSA Phase I long lead items, obsolescence, tooling and test equipment, key personnel, line requalification activities, initial training development, System Integration Lab and testbeds, three-level maintenance concept, exportability, and early engineering development. The work will be performed in: Dallas, Texas; Lufkin, Texas; Huntsville, Alabama; Anniston, Alabama; Camden, Arkansas; Troy, Alabama; and Sunnyvale, California. The performance period is from Feb. 28, 2019, through Oct. 31, 2026. KSA FMS funds in the amount of $945,900,000 will be used to fund this effort. The Missile Defense Agency, Huntsville, Alabama, is the contracting activity (HQ0147-19-C-0007). NAVY Corvid Technologies LLC,* Mooresville, North Carolina, is awarded a $223,277,038 firm-fixed-price, cost-plus-fixed-fee, cost-reimbursable, indefinite-delivery/indefinite-quantity contract for the delivery of hardware, equipment and components for manufacturing and integration of short- and medium-range sub-orbital flight vehicles supporting Navy, other government agencies, and Foreign Military Sales testing over a five-year ordering period. The flight vehicles are exo-atmospheric rocket-based vehicles specifically configured to deliver payloads and test articles into a flight regime of interest for systems under test. This contract combines purchases for the Navy (76 percent); other government agencies (12 percent); and Foreign Military Sales to the government of Japan (12 percent). Work will be performed at the White Sands Missile Range, New Mexico (70 percent); Mooresville, North Carolina (10 percent); Herndon, Virginia (5 percent); Glen Burnie, Maryland (5 percent); Las Cruces, New Mexico (5 percent); and Huntsville, Alabama (5 percent), and is expected to be completed by February 2024. Foreign Military Sales (Japan) funding in the amount of $8,021,855 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with two offers received. The Naval Surface Warfare Center, Dahlgren Division, Dahlgren, Virginia, is the contracting activity (N00178-19-D-5001). General Dynamics Electric Boat Corp., Groton, Connecticut, is being awarded a $76,210,586 cost-plus-fixed-fee completion undefinitized contract action under previously-awarded contract N00024-16-C-2111 to perform planning and execution efforts and alterations during USS South Dakota's (SSN 790) post-delivery work period. Work will be performed in Groton, Connecticut, and is expected to be completed by December 2020. Fiscal 2019 and 2020 research, development, test and evaluation (Navy) funding in the amount $38,320,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding, Conversion and Repair, Groton, Connecticut, is the contracting activity. General Dynamics Electric Boat Corp., Groton, Connecticut is awarded a $60,000,000 cost-plus-fixed-fee, level-of-effort undefinitized contract action under previously-awarded contract N00024-09-C-2104 to provide additional support and services during USS South Dakota's (SSN 790) post-delivery work period. Work will be performed in Groton, Connecticut, and is expected to be completed by December 2020. Fiscal 2019 shipbuilding and conversion (Navy) funding in the amount of $30,000,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding, Conversion and Repair, Groton, Connecticut, is the contracting activity. General Dynamics Electric Boat Corp., Groton, Connecticut, is awarded a $55,077,981 cost-plus-fixed-fee, level-of-effort undefinitized contract action under previously-awarded contract N00024-16-C-2111 to perform the planning and execution efforts and installation of the Stern Area System during USS South Dakota's (SSN 790) post-delivery work period. Work will be performed in Groton, Connecticut, and is expected to be complete by December 2020. Fiscal 2019 and fiscal 2020 (subject to availability of funds) research, development, test and evaluation (Navy) funding in the amount $27,680,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding, Conversion and Repair, Groton, Connecticut, is the contracting activity. Serco Inc., Reston, Virginia, is awarded a $41,304,910 modification under fixed-price contract (N39430-16-C-1811) to exercise Option Period Three for lifecycle sustainment of physical security/access control and command, control, communications, computers, and intelligence systems in support of the Naval Facilities Engineering Command Anti-Terrorism/Force Protection Ashore Program at various Navy installations worldwide. The work to be performed provides for preventive maintenance of hardware, associated firmware, and software; response and resolution of service calls for corrective maintenance to include equipment repair, overhaul, or replacement; information assurance vulnerability alert to include version control, patch management, and vulnerability scanning; asset management to track, maintain, upgrade, and dispose of systems; configuration management to establish and maintain consistency of the system attributes with operational requirements and evolving technical baseline; technical refreshments, upgrades and installation of new systems; and programmatic trend analysis to identify systemic sustainment issues such as technology obsolescence. After award of this option, the total cumulative contract value will be $160,741,210. Work will be performed at various installations worldwide, and work is expected to be completed March 2020. Fiscal 2019 operations and maintenance, (Navy) contract funds in the amount of $41,304,910 are obligated on this award and will expire at the end of the current fiscal year. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity. Gilbane Federal, Concord, California, is awarded an $8,403,802 firm-fixed-price modification to decrease the value of the contract for the cleaning, inspection, and repair of fuel storage tanks 602, 604 and 605 at Defense Fuel Support Point (DFSP) Tsurumi, Japan, from the task order scope of work. After award of this modification, the total remaining task order value will be $4,733,405. Work will be performed in Tsurumi, Japan, and is expected to be completed by May 2019. Fiscal 2016 defense working capital (Defense Logistics Agency) contract funds in the amount of $8,403,802 will be de-obligated on this award and will not expire at the end of the current fiscal year. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity (N39430-15-D-1634). ARMY REEL COH Inc., Mobile, Alabama (W9128F-19-D-0019); PaR Sytstems, Shoreview, Minnesota (W9128F-19-D-0020); Knight Construction & Supply Inc.,* Deer Park, Washington (W9128F-19-D-0021); Crane Technologies,* Rochester Hills, Minnesota (W9128F-19-D-0022); and Garco WEMCO JV, Spokane, Washington (W9128F-19-D-0023), will compete for each order of the $99,900,000 contract for crane rehabilitation and replacement. Bids were solicited via the internet with nine received. Work locations and funding will be determined with an estimated completion date of March 3, 2024. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity. Lockheed Martin Missiles Fire Control, Grand Prairie, Texas, was awarded an $8,469,594 modification (P00026) to Foreign Military Sales (Japan, Saudi Arabia, Republic of Korea, Kuwait, Qatar, Taiwan, United Arab Emirates, Germany and Netherlands) contract W31P4Q-17-D-0026 for Phased Array Tracking Radar to Intercept On Target Advanced Capability-3 Missile Support Center Field Missile Activities. Work locations and funding will be determined with each order, with an estimated completion date of May 31, 2020. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. DEFENSE LOGISTICS AGENCY Steris Corp., Mentor, Ohio, has been awarded a maximum $48,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for hospital equipment and accessories. This was a competitive acquisition with 74 responses received. This is a five-year contract with no option periods. Location of performance is Ohio, with a March 3, 2024, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-19-D-0011). Aurora Industries LLC,* Camuy, Puerto Rico, has been awarded a maximum $18,672,261 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for coats for the Army Combat Uniform and Improved Hot Weather Combat Uniform. This was a competitive acquisition with three responses received. This is a two-year contract with no option periods. Location of performance is Puerto Rico, with a Sept. 3, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1137). AIR FORCE The Boeing Co., Defense Space Security, St. Louis, Missouri, has been awarded a not-to-exceed $40,000,000 undefinitized fixed-price-incentive-firm modification (P00003) to previously awarded contract FA8634-18-C-2697 for Infra-Red Search and Track Block II Ship Sets. This modification provides for the production of an additional six Block II IRST Ship Sets. Work will be performed in St. Louis, Missouri; and Orlando, Florida, and is expected to be complete by Oct. 31, 2022. Fiscal 2017 procurement funds in the amount of $19,600,000 are being obligated at the time of award. This modification brings the total cumulative face value of the contract to $249,784,825. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. JASR Systems LLC, La Jolla, California, has been awarded an $8,107,308 firm-fixed-price contract for research and development. This contract provides for the development of chip-scale Optical Phased Arrays and Light Detection and Ranging systems that leverages Defense Advanced Research Projects Agency Modular Optical Aperture Building Blocks (MOABB) Phase 1, and maps to Phases 2 and 3 of the MOABB program respectively. Work will be performed in La Jolla, California, and is expected to be complete by Nov. 1, 2020. This award is the result of a competitive acquisition and one offer was received. Fiscal 2018 research, test, development and evaluation funds in the amount of $1,400,000 are being obligated at the time of award. Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-19-C-7916). * Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1774554/
July 5, 2019 | International, Aerospace

The Department of Defense wants ideas for a tiny autonomous space station
By Andrew Liptak The Pentagon's Defense Innovation Unit (DIU) has issued a solicitation for a tiny, “self-contained and free flying orbital outpost” that can host experiments and equipment in orbit and could eventually be scaled up for human habitation. The Orbital Outpost that's being solicited would be small: it needs to have at least a cubic meter of space inside, be able to carry 80 kilograms, have continuous power, and should have a pressurization of anywhere from 0 to 1 atmospheres. It should be able to move around in orbit on its own, and it has to be built quickly; the military wants it ready to go within two years after it awards a contractor a contract. The military also says that it eventually wants the station to be modular (able to attach other components or other outposts), have a robotic arm, be able to carry people, and be hardened against radiation for “beyond [low Earth orbit] applications.” Full article: https://www.theverge.com/2019/7/3/20680849/department-of-defense-autonomous-space-station-ideas-experiment-human-habitation

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