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July 9, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
Top Defense Execs Ask For Help in Next COVID Stimulus Package
The biggest defense manufacturers in the world warned the Pentagon and OMB of "significant job losses in pivotal states" if Congress doesn't come up with stimulus money to cover unforeseen expenses.
By PAUL MCLEARYon July 08, 2020 at 4:16 PM
WASHINGTON: A group of CEOs leading the world's top defense firms sent letters to Pentagon acquisition chief Ellen Lord and and Office of Management and Budget director Russell Vought on Wednesday, citing “significant job losses in pivotal states” if the federal government doesn't step in to assist with COVID-related costs.
Electoral maps have traditionally acted as a tried and tested tool defense contractors use when making pitches to both the Pentagon and Congress, as a way of showing where the jobs sit in different congressional districts.
The letter to Lord was signed by the leaders of Lockheed Martin, General Dynamics, Boeing, Raytheon, and BAE Systems, which represent five of the top seven defense companies in the world. Huntington Ingalls, Textron Inc., and L3Harris Technologies also signed onto the letter, which was obtained by Breaking Defense, requesting the Pentagon's help in pressing for stimulus money in the Senate's next rescue package. The Senate is slated to debate in the coming days.
Lord has previously estimated the Pentagon would have to pay more than “lower double digit billions” to offset costs borne by defense manufacturers in lost work hours, buying PPE equipment and propping up smaller suppliers.
Speaking to reporters at the Pentagon last month, Lord said she's seeing a “three-month slowdown to all programs due to COVID-19,” after the virus shut down defense manufacturing facilities and production lines across the globe.
The vast majority of defense firms have operated at reduced capacity over the past several months, and Lord said the Pentagon continues to see the biggest impacts in the aviation and shipbuilding supply chains.
The CEOs write that US-based supply chains “are simply not able to absorb these significant costs. Without additional funding in the next stimulus package, the resolution of [reimbursement] claims will need to be funded from existing DoD budget topline resources for FY20-22.”
That would cause “significant reductions” in research and procurement budgets, they said, before pivoting to warning about Defense Secretary Mark Esper's top priority: modernizing weapons systems to keep abreast of China and Russia. Placing the burden on the companies to use their own case to meet unplanned emergency costs risks “thwarting the Department's ability to meet the challenges and threats associated with great power competition” they add.
In order to keep the smaller suppliers afloat, companies have pushed contracts forward to give the smaller supplier more work, and in turn, DoD has sped up planned payments to the defense industry, hitting the $2 billion mark in recent weeks.
Speaking at a Brookings Institution event this morning, Lord didn't mention the letter, but talked about moving more production of defense equipment to the United States from overseas. Part of that effort stems from President Trump's “American First” push to build up the domestic manufacturing sector, but Chinese influence in electronic supply chains is also a big concern.
During a visit to the Fincantieri Marinette Marine shipyard in Wisconsin late last month, Trump said “we'll always live by two simple rules: Buy American and hire American.”
Lord phrased the idea differently, saying she prefers to have two sources for equipment, and “we would like one of those, if possible, to be domestic.” That issue has been highlighted in the global pandemic shutdown which wreaked havoc on global supply chains. “We just found that particularly with microelectronics, we have gotten ourselves into a potentially compromised position,” Lord said. “Where we have US intellectual property going offshore for fabrication and packaging leaves us with some vulnerability there. That is unacceptable moving forward.”
During his Wisconsin visit, Trump suggested that one of the considerations for awarding a $795 million contract to the US home of the Italian shipbuilder was its location in a competitive state in the 2020 presidential election. “You notice that's not a supply chain going through China and going through other countries,” he said, adding, “I hear the maneuverability is one of the big factors that you were chosen for the contract. The other is your location in Wisconsin, if you want to know the truth.”
https://breakingdefense.com/2020/07/top-defense-execs-ask-for-help-in-next-covid-stimulus-package
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Navy brings unmanned vessels to Japan to bolster fleet integration
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July 2, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence
Contract Awards by US Department of Defense - June 27, 2019
ARMY Lockheed Martin Corp., Orlando, Florida, was awarded a $106,108,230 firm-fixed-price domestic and foreign military sales (Netherlands and United Kingdom) contract for Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor systems, subcomponent production and technical services for the Apache Attack Helicopter. One bid was solicited with one bid received. Work locations and funding will be determined with each order, with an estimated completion date of March 31, 2023. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-17-D-0043). SRCTec LLC, Syracuse, New York, was awarded a $91,400,000 modification (P00013) to contract W15P7T-13-D-C702 for lightweight counter mortar radar systems, vehicle mounts, spare parts, retrofit kits and support services. Work locations and funding will be determined with each order, with an estimated completion date of July 16, 2021. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. The Boeing Co., Mesa, Arizona, was awarded a $47,684,233 modification (P00029) to contract W58RGZ-16-C-0023 for Version 6/Improved Drive System-enhancement cut-in on the Apache Attack Helicopter (AH)-64E production line and for the Apache Longbow Crew Trainers. Work will be performed in Mesa, Arizona, with an estimated completion date of March 31, 2022. Fiscal 2010, 2018 and 2019 foreign military sales, and aircraft procurement, Army funds in the combined amount of $23,365,274 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. General Atomics Aeronautical Systems Inc., was awarded a $21,954,252 modification (P00007) to contract W58RGZ-19-C-0027 for procurement of performance based logistics support services for the MQ-1C Gray Eagle Unmanned Aircraft System. Work will be performed in Poway, California, with an estimated completion date of June 30, 2020. Fiscal 2019 operations and maintenance Army funds in the amount of $9,733,334 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Morrish-Wallace Construction Co.,* Cheboygan, Michigan, was awarded an $18,000,000 firm-fixed-price contract for complete repairs on the Buffalo North Breakwater. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of June 26, 2022. U.S. Army Corps of Engineers, Buffalo, New York, is the contracting activity (W912P4-19-D-0002). Microsoft Corp., Redmond, Washington, was awarded a $14,079,784 firm-fixed-price contract for consulting services. One bid was solicited with one bid received. Work will be performed in Fort Huachuca, Arizona, with an estimated completion date of June 27, 2020. Fiscal 2019 operations and maintenance Army funds in the amount of $5,866,577 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W91RUS-19-F-0235). Ross Island Sand & Gravel Co., Portland, Oregon, was awarded an $8,745,321 firm-fixed-price contract for annual maintenance dredging of the Sacramento and Stockton Deep Water Ship Channels. Bids were solicited via the internet with three received. Work will be performed in Sacramento and Stockton, California, with an estimated completion date of Jan. 15, 2020. Fiscal 2019 operations and maintenance, civil funds in the amount of $8,745,321 were obligated at the time of the award. U.S. Army Corps of Engineers, San Francisco, California, is the contracting activity (W912P7-19-C-0011). AIR FORCE CACI Inc., Chantilly, Virginia, has been awarded a $45,992,341 firm-fixed-price task order (FA7014-19-F-A106) to the previously awarded indefinite-delivery, indefinite-quantity contract (47QTCK-18-D-0009) for the Secretary of the Air Force Financial Management Financial Information Systems Maintenance Support Services. This task order provides the Assistant Secretary of the Air Force Financial Management Budget Operations and the Office of the Assistant Secretary of the Army Financial Management & Comptroller IT maintenance and support services for their existing financial information systems: the automated schedule and reporting system; the exhibit automation system; the planning, programming, budget and execution portal and the data analysis reporting tool. These services are performance-based, and they provide maintenance via web portals and access via the internet. The tools assist the government by providing a myriad of analytical reports that allow budget analysts to identify program trends and discrepancies for improved program justification of program changes. Work will be performed in Washington, District of Columbia, and is expected to be complete by June 21, 2024. This award is the result of a sole-source acquisition. Fiscal 2019 operation and maintenance funds in the amount of $8,236,756 are being obligated at time of award. Air Force District of Washington, Joint Base Andrews, Maryland, is the contracting activity. Dell Federal Systems LP., Round Rock, Texas, has been awarded a $35,800,000 firm-fixed-price contract for mobile interceptor platform and deployable interceptor platform. The contract provides for hardware refresh which cyber protection teams use to defend mission partner enclaves and platform information technology from cyber threats. Work will be performed in San Antonio, Texas, and is expected to be completed by Aug. 28, 2019. This award is the result of a competitive acquisition and three offers received. Fiscal 2019 procurement funds in the amount of $20,464,000 are being obligated at the time of award. The Air Force Installation Contracting Center, Lackland Air Force Base, Texas, is the contracting activity (FA8732-14-D-0002/FA8307-19-F-0095). Dataminr Inc., New York, New York, has been awarded a $35,766,667 firm-fixed-price modification (P0001) to previously awarded contract FA7014-19-C-A011 for First Alert proprietary alerting system. Worked will be performed in New York, New York, and is expected to be completed by Dec. 11, 2019. Fiscal 2019 operations and maintenance funds in the amount of $24,923,077 are being obligated at the time of the award. Air Force District of Washington, Joint Base Andrews, Maryland, is the contracting activity. Exbon Development, Garden Grove, California (FA486117-17-D-A100); DSB-RLR JV, American Folk, Utah (FA4861-17-D-A101); North Star Construction, Yuba City, California (FA486117-17-D-A102); North Wind Construction, Las Vegas, Nevada (FA4861-17-D-A103); Kautaq-Northcon Team Tempe, Arizona (FA486117-17-D-A104); Sierra Range Construction of Visalia, California (FA4861-17-D-A105); West Point Contractors Inc., Tucson, Arizona (FA486117-17-D-A107), have been awarded a $30,000,000 ceiling increase modification (P00003) to previously awarded multiple award contract FA4861-17-D-A10X for a broad range of maintenance, repair and minor construction work on real property. This modification will increase the contract value from $40,000,000 to $70,000,000. Work will be performed at Nellis Air Force Base, Nevada, and Creech Air Force Base, Nevada, and is expected to be completed by May 2022. No funds are being obligated at the time of award. The 99th Contracting Squadron, Nellis Air Force Base, Nevada, is the contracting activity. Raytheon Co., Fullerton, California, has been awarded a $26,600,000, indefinite-delivery/indefinite-quantity, firm‐fixed-price, cost-plus fixed fee, cost‐reimbursable contract for the Situation Awareness Data Link program. This contract provides software maintenance and engineering services support services. Work will be performed in Fullerton, California, and is expected to be completed by Aug. 21, 2024. This award is the result of a sole‐source acquisition. Fiscal 2019 operations and maintenance funds in the amount of $3,012,233 are being obligated at the time of award. The Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contract activity (FA8574‐19‐D‐0001). Universal Technology Corp., Dayton, Ohio, has been awarded an $11,000,000 indefinite-delivery/indefinite-quantity contract for nondestructive evaluation exploratory development and inspection support for Air Force systems. This contract provides for quick reaction response support for failure analysis and materials and processes issues relating to nondestructive inspection in support of the systems support division of the Air Force Research Laboratory's materials and manufacturing directorate. Work will be performed at Wright Patterson Air Force Base, Ohio, and Dayton, Ohio, and is expected to be completed by Sep. 28, 2024. This contract was a competitive source acquisition, with one offer received. Fiscal 2019 research, development, test and evaluation funds in the amount of $200,000 are being obligated at the time of award. The Air Force Research Laboratory, Wright Patterson Air Force Base, Ohio, is the contracting activity (FA8650-19-D-5625). Barnett Paving & Sealing LLC,* Wichita Falls, Texas, has been awarded a $10,000,000 indefinite-delivery/indefinite-quantity task order contract for airfield pavements. This contract provides for the repair and sustainment of the airfield pavements along with restriping and rubber removal. Work will be performed at Little Rock Air Force Base, and is expected to be completed by June 2024. This award is the result of a competitive, hub zone small business acquisition and two offers were received. No funds are being obligated at the time of award, however, fiscal 2019 operations and maintenance funds in the amount of $164,659 will be obligated on the first task order immediately after award. The 19th Contracting Squadron, Little Rock Air Force Base, Arkansas, is the contracting activity (FA4460-19-D-A003). Lockheed Martin Corp., Sunnyvale, California, has been awarded a $7,085,068 cost reimbursement contract modification (P00153) to previously awarded contract (FA8810-08-C-0002) for Highly Elliptical Orbit (HEO) Operational Migration to Enterprise Ground Services (EGS) Step 1 development and test campaign support. The contract modification is for Lockheed Martin system engineering integration test support for our HOME RS test campaign, as well as anomaly response matrix validation, flight software validation, synchronized pre-deployment and operational tracker support, and a few minor HOME development efforts. Work will be performed at Aurora, Colorado; Azusa, California; Boulder, Colorado; and Sunnyvale, California, and is expected to be completed by March 6, 2020. Fiscal 2019 research and development funds in the amount of $7,085,068 are being obligated at the time of award. The Space and Missile Systems Center, Los Angeles Air Force Base, El Segundo, California is the contracting activity. NAVY Diversified Maintenance Systems Inc.,* Sandy, Utah, is awarded a maximum amount $40,000,000 indefinite-delivery/indefinite quantity contract for other specialty trade contractors construction alterations, renovations and repair projects at Naval Postgraduate School Monterey, Naval Air Weapons Station China Lake, and Naval Air Station Lemoore. Projects will be primarily design-bid-build (fully designed) task orders or task order with minimal design effort (e.g. shop drawings). Projects may include, but are not limited to, alterations, repairs and construction of electrical; mechanical; painting; engineering/design; paving (asphaltic and concrete); flooring (tile work/carpeting); roofing; structural repair; fencing; heating, ventilation and air conditioning and fire suppression/protection system installation projects. Work will be performed in Monterey, California (33%), China Lake, California (34%), and Lemoore, California (33%). The term of the contract is not to exceed 60 months with an expected completion date of June 2024. Fiscal 2019 operation and maintenance (Navy) contract funds in the amount of $5,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by operation and maintenance (Navy) funds. This contract was competitively procured via the Navy Electronic Commerce Online website, with seven proposals received. The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-19-D-2629). Advanced Crane Technologies LLC,* Reading, Pennsylvania (N62470-19-D-1006); Crane Technologies Group Inc.,* Rochester Hills, Michigan (N62470-19-D-1007); HECO-Pacific Manufacturing Inc.,* Union City, California (N62470-19-D-1008); Mid-Atlantic Crane,* Raleigh, North Carolina (N62470-19-D-1009); Piedmont Hoist and Crane Inc.,* Colfax, North Carolina (N62470-19-D-1010); and Sievert Crane and Hoist,* Forest Park, Illinois (N62470-19-D-1011) are each awarded an indefinite-delivery/indefinite-quantity multiple award contract for ordering new, and overhauling existing, weight handling equipment located primarily within Navy, Marine Corps and other federal activities worldwide. The maximum dollar value including the base period and four option years for all six contracts combined is $30,000,000. Piedmont Hoist and Crane Inc. is being awarded the initial delivery order at $241,700 for the design, fabrication, assembly, testing, delivery, installation and inspection of one two-ton, under-running, underhung, single girder electric traveling crane and one half-ton monorail trolley and hoist to be installed in Building 124 at Naval Air Warfare Center, Aircraft Division, in Lakehurst, New Jersey. Work for this delivery order is expected to be completed by December 2020. The term of the contract is not to exceed 60 months, with an expected completion date of June 2024. Fiscal 2019 Navy working capital funds in the amount of $241,700 are obligated on this award and will expire at the end of the current fiscal year. Future delivery orders will be primarily funded by military construction (Navy), operation and maintenance (Navy) and Navy working capital funds. This contract was competitively procured via the Navy Electronic Commerce Online website, with six proposals received. These six contractors may compete for delivery orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command, Atlantic, Norfolk, Virginia, is the contracting activity. McNally Industries LLC, Grantsburg, Wisconsin, is awarded a maximum value $21,246,166 cost-plus-fixed-fee delivery order N00174-19-F-0373 under previously-awarded basic ordering agreement N00024-17-G-5385 to overhaul Mk 6 Mod 19 ammunition hoist assemblies. This basic ordering agreement is to provide materials and services required to receive, inventory, stage, disassemble, inspect, convert, repair, overhaul, upgrade, manufacture, procure, assemble, test, preserve, package and ship Mk 6 Mod 19 ammunition hoist assemblies. Work will be performed in Grantsburg, Wisconsin, and is expected to be completed by May 2022. Fiscal 2015, 2016, 2017 and 2018 shipbuilding and conversion (Navy) funding in the amount of $7,843,136 will be obligated at time of award, and $980,392 will expire at the end of the current fiscal year. The Naval Surface Warfare Center, Indian Head Explosive Ordnance Disposal Technology Division, Indian Head, Maryland, is the contracting activity. POWER Engineers Inc., Hailey, Idaho, is awarded an $18,000,000 firm-fixed-price modification to increase the maximum dollar value of a previously awarded indefinite-delivery/indefinite-quantity contract (N62742-16-D-0002) for architect-engineering services for various electrical engineering projects and related services at various locations in all areas under the cognizance of Naval Facilities Engineering Command (NAVFAC) Pacific. After award of this modification, the total cumulative contract value will be $38,000,000. Work will be performed at various Navy and Marine Corps facilities and other government facilities within the NAVFAC Pacific area of operations including, but not limited to Guam (70%), Hawaii (25%) and the Commonwealth of the Northern Marianas Islands (5%). The term of the contract is not to exceed 60 months, with an expected completion date of November 2020. 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 military construction (planning and design). Naval Facilities Engineering Command Pacific, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity. Raytheon Co., McKinney, Texas, is awarded $16,132,820 for job order 0012 under a previously awarded basic ordering agreement N00164-17-G-JQ02 for seven Multi-spectral Targeting Systems “B” AN/DAS-3. The Multi-spectral Targeting Systems “B” AN/DAS-3 are in support of the Low Rate Initial Production (LRIP 3 and 4) efforts of the MQ-4C Triton Program. Work will be performed in McKinney, Texas, and is expected to be complete by July 2021. Fiscal 2018 and 2019 aircraft procurement (Navy) funding in the amount of $16,132,820 will be obligated at the time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S. Code 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Surface Warfare Center, Crane, Indiana, is the contracting activity. Didlake Inc., Manassas, Virginia, is awarded a $10,384,079 modification under a previously awarded indefinite-delivery/indefinite-quantity contract (N40085-15-D-0083) to exercise option four for annual custodial services at Norfolk Naval Shipyard and Joint Expeditionary Base Little Creek – Fort Story. The work to be performed provides for annual custodial services, including, but not limited to, all management, supervision, tools, materials, supplies, labor and transportation services necessary to perform custodial services for office space, restrooms and other types of rooms at the Norfolk Naval Shipyard, Portsmouth, Virginia, and Joint Expeditionary Base Little Creek – Fort Story, Virginia Beach, Virginia. After award of this option, the total cumulative contract value will be $53,428,936. Work will be performed at various installations in Virginia Beach, Virginia (77%) and Portsmouth, Virginia (23%), and work is expected to be completed June 2020. No funds will be obligated at time of award. Fiscal 2019 operation and maintenance (Navy) contract funds in the amount of $10,250,107 for recurring work will be obligated on individual task orders issued during the option period. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity. Sikorsky Aircraft Corp., Stratford, Connecticut, is awarded $7,823,461 for modification 11 to a firm-fixed-price delivery order 5306 against a previously issued basic ordering agreement (N00019-14-G-0004). This modification procures 36 Nacelles Production Kits in support of the H-53 aircraft. Work will be performed in Stratford, Connecticut, and is expected to be completed in December 2020. Fiscal 2017 and 2018 aircraft procurement (Navy) funds in the amount of $7,823,461 will be obligated at time of award, $1,738,547 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. DEFENSE LOGISTICS AGENCY World Fuel Services Inc., Miami, Florida, has been awarded a maximum $9,289,995 fixed-price with economic-price-adjustment contract for fuel. This was a competitive acquisition with 148 responses received. This is a 45-month contract with one six-month option period. Location of performance is Florida, with a March 31, 2023, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2019 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE607-19-D-0092). *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1890122/source/GovDelivery/