UK lawmakers, defense chief clash over looming defense spending cuts

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  April 29, 2020 | International, Naval

  U.S. Navy pays contractors $600 million held back to ensure performance

  WASHINGTON (Reuters) - The U.S. Navy has paid defense contractors $600 million it had withheld to ensure contract performance, hoping the funds would shore up finances for suppliers ravaged by the coronavirus-driven economic downturn, a Navy official said on Tuesday. The move, which follows a similar action taken by the Air Force that released billions of dollars in payments, is aimed at replacing revenue vital Pentagon suppliers have lost in their non-military businesses as the spreading coronavirus has halted business activity nationwide. “We were immediately able to infuse about $600 million of funds that we had on withholds,” James Geurts, the assistant secretary of the Navy for research, development and acquisition, told reporters on a conference call. A Navy spokesperson said “for example, with the ship repair industry, withholds were reduced to one percent.” The Navy was unable to say whether a portion of the $600 million was withheld due to poor contractor performance. The Department of Defense has also accelerated contract awards as it leverages its portion of the more than $700 billion annual defense budget to help keep suppliers afloat. Geurts wrote a memo on March 24 to his staff directing them to release or reduce the withholds. It did not discuss rectifying the root causes. Government waste watch-dogs criticized the move. “This current emergency shouldn't be an excuse to avoid accountability for poor performance that predated this outbreak,” said Mandy Smithberger, of the Project On Government Oversight in Washington. Earlier this month, Geurts said he had authorized “hundreds of millions” of dollars to be paid out to top suppliers like General Dynamics (GD.N) and Huntington Ingalls Industries (HII.N) which could flow to the supply chain. Representatives from Huntington Ingalls and General Dynamics said the Navy was not withholding money from them for poor performance. While the Navy did not name any companies that received payments, industry sources have said the biggest contractors have been filtering coronavirus-related funds to their suppliers and subcontractors who, because of their smaller size, are on much shakier financial footing. The Navy's multi-layered supply chain is comprised of companies building out President Donald Trump's vision for a 350 ship here Navy. The funding will help pay salaries and ensure hard-to-replace workers are not lost to other industries or early retirement. Geurts has said the Navy is pushing money into the defense industrial base by speeding up contract payments, hastening contract awards and releasing funds withheld for poor past performance. The U.S. Air Force said it would release $882 million in payments to Boeing (BA.N) that were held back due to flaws in the KC-46 air refueling tanker. https://www.reuters.com/article/us-usa-navy-procurement/u-s-navy-pays-contractors-600-million-held-back-to-ensure-performance-idUSKCN22A33L

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  August 4, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Contract Awards by US Department of Defense - August 03, 2020

  U.S. SPECIAL OPERATIONS COMMAND GATR Technologies, Huntsville, Alabama, a subsidiary of Cubic Corp., was awarded a $172,000,000 maximum ceiling, single-award, indefinite-delivery/indefinite-quality, firm-fixed-price contract (H92401-20-D-0003) with five one-year ordering periods for the procurement of 1.2 meter and 2.4 meter Ground Antenna Transmit and Receive (GATR) inflatable satellite communications terminals and ancillary equipment in support of U.S. Special Operations Command (USSOCOM). Fiscal 2020 procurements funds in the amount of $5,000 are being obligated at the time of award. The contract will be funded with operations and maintenance funds, as well as procurement funds, from multiple fiscal years over the life of the contract. The majority of the work will be performed in Huntsville and is expected to be completed by August 2025. The contract is a Phase III Small Business Innovation Research award authorized under Title 10, U.S. Code 2304(b)(2) or Title 41, U.S. Code 253(b)(2). USSOCOM, Tampa, Florida, is the contracting activity. ARMY Grand River Aseptic Manufacturing Inc.,* Grand Rapids, Michigan, was awarded a $160,000,000 firm-fixed-price contract for domestic aseptic fill and finish manufacturing capacity for critical vaccines and therapeutics in response to the COVID-19 pandemic. Bids were solicited via the internet with one received. Work will be performed in Grand Rapids, Michigan, with an estimated completion date of Aug. 2, 2021. Fiscal 2020 Health and Human Services funds in the amount of $160,000,000 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911QY-20-C-0086). Aspen Construction Co.,* Hackensack, Minnesota, was awarded an $8,354,252 contract for Phase II redevelopment site construction in Martin, Kentucky. Bids were solicited via the internet with four received. Work will be performed in Martin, Kentucky, with an estimated completion date of March 3, 2023. Fiscal 2020 civil construction funds in the amount of $8,354,252 were obligated at the time of the award. U.S. Army Corps of Engineers, Huntington, West Virginia is the contracting activity (W91237-20-C-0007). NAVY Northrop Grumman Systems Corp., Melbourne, Florida, is awarded a $34,712,366 cost-plus-fixed-fee order (N00019-20-F-0088) against previously-issued basic ordering agreement N00019-20-G-0005. This order provides non-recurring engineering for requirements development and systems engineering technical reviews and certification planning; initial requirements change requests; procurement strategy source selection package; performance based navigation certification plan; initial system safety; cyber; program protection and exportability analysis; integrated master schedule; and other associated technical deliverables in support of the E-2D Advanced Hawkeye cockpit redesign. Work will be performed in Melbourne, Florida (99.76%); and Patuxent River, Maryland (0.24%), and is expected to be completed by January 2022. Fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $5,785,394 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. Koman Construction LLC,* Anchorage, Alaska, is awarded a $10,000,000 indefinite-delivery/indefinite-quantity contract with firm-fixed priced task orders that will be issued for the construction and repairs at the U.S. Naval Academy, Annapolis, Maryland. The total cumulative contract value is not to exceed $10,000,000 over the duration of the contract. Work will be performed in Annapolis, Maryland, and the contract completion date is July 2021. No funds will be obligated at the time of award; funds will be obligated on individual task orders as they are issued. The Naval Facilities Engineering Command Washington, Washington, D.C., is the contracting activity (N40080-20-D-0019). AIR FORCE Raytheon Co., Tewksbury, Massachusetts, has been awarded a $33,735,474, predominantly cost-plus-incentive-firm modification (P00068) to contract FA8730-15-C-0002 for National Advanced Surface to Air Missile System (NASAMS) integration and alternate Air Defense Operations Center (ADOC) installation. The contract modification is for the procurement, installation, integration and testing of NASAMS into the ADOC and alternate ADOC. Work will be performed in Tewksbury, Massachusetts, and is expected to be completed October 2021. This modification involves Foreign Military Sales (FMS) to Qatar. FMS funds in the in the full amount are obligated at the time of award. Total cumulative face value of the contract is $346,498,681. Air Force Life Cycle Management Center, Hanscom Air Force Base, Massachusetts, is the contracting activity. ROCCOR LLC, Longmont, Colorado, has been awarded a $15,998,168 cost-plus-fixed-fee modification (P00003) to contract FA9453-20-C-0003 for structurally combined aperture and reticulated locking expandable truss. This modification provides for the exercise of the option where ROCCOR will develop, build and test a flight quality demonstration unit for the Air Force Research Laboratory. The system will consist of a scaled and/or truncated system that provides guidance for the structural feasibility of a full scale meter operational system. Work will be performed in Longmont, Colorado, and is expected to be completed Aug. 3, 2022. Fiscal 2020 research, development, test and evaluation funds in the amount of $4,945,000 are being obligated at the time of award. Total cumulative face value of the contract is $16,998,086. Air Force Research Laboratory, Kirtland Air Force Base, New Mexico, is the contracting activity. Aptima Inc., Woburn, Massachusetts, has been awarded a $9,900,000 indefinite-delivery/indefinite-quantity contract for research and development. The purpose of this research and development contract is operational experimentation, technology refinement and operational alignment related to improving and personalizing individual, team and larger group instructional training methods and better blending of live, virtual and constructive environments in and across operational contexts. Work will primarily be performed at Wright-Patterson Air Force Base, Ohio, and is expected to be completed Nov. 3, 2025. This award is the result of a competitive acquisition and one offer was received. Fiscal 2020, research, development, test and evaluation funds in the amount of $1,508,274 will be obligated at the time of award. Air Force Research Laboratory, Wright-Patterson AFB, Ohio, is the contracting activity (FA8650-20-D-6243). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2298575/source/GovDelivery/

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  August 21, 2023 | International, Aerospace

  Space Development Agency awards $1.5 billion for transport satellites

  The 72 satellites are part of a constellation SDA expects will one day include hundreds of small satellites operating in low Earth orbit.