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  • Budget spat puts Boeing contract for AWACS upgrades at risk: sources

    August 27, 2019 | International, Aerospace

    Budget spat puts Boeing contract for AWACS upgrades at risk: sources

    Andrea Shalal WASHINGTON (Reuters) - A dispute over budgeting processes could delay NATO's efforts to finalize a $1 billion contract to extend the life of 14 aging Boeing E-3A surveillance aircraft, often called NATO's “eyes in the sky,” sources familiar with the program said. NATO officials have invited the 16 member nations in the Airborne Warning & Control System, or AWACS, program to an extraordinary meeting on Sept. 12 to mark the program's 40th anniversary and resolve the budget dispute, the sources said. Unless the issue is resolved soon, the contract will not be awarded to Boeing in time to be announced as planned at the Dec. 3-4 NATO summit in London, the sources said. “It's disappointing that a one-sided interpretation of the rules is putting this much-needed upgrade program at risk,” said one of the sources. The upgrades would keep the 1979/1980-era airplanes, with their distinctive radar domes on the fuselage, flying until 2035. NATO needs the planes to carry out missions such as air policing, evacuations and counter-terrorism operations. A second source said the dispute was not expected to kill the upgrade program outright, but could well push a contract award to Boeing off until next year, marking a setback for the U.S. contractor at a time when it still is struggling to get its 737 MAX commercial airplane back in the air. NAPMA, the NATO agency that manages the AWACS fleet, said in June it expected to finalize by December a $750 million contract with Boeing to extend the life of the aircraft through 2035, with $250 million more earmarked for design, spare parts and testing. But unanimous consent of member states is needed to proceed, and Norway has raised concerns about an uneven flow of funds to the program until its completion by 2027, the sources said. They said Oslo wants the biggest program states - the United States, Germany, Italy and the Netherlands - to transfer the bulk of their payments at the start, but that is not possible due to budgetary rules in those countries. In the United States, for instance, funding for weapons programs is generally authorized and distributed on an annual basis, subject to approval by the U.S. Congress. Ann-Kristin Salbuvik, spokeswoman for the Norwegian defense ministry, said Norway remained committed to the AWACS Final Life Extension Program and was prepared to finance its share of the program in coming years. But she said a decision to launch the program was contingent on approval by all member states, and the Boeing offer had to be “compliant, affordable and feasible.” Boeing spokeswoman Melissa Stewart on Thursday had no comment on the dispute, saying Boeing continued to work with NATO “to assess needs and present the best options and upgrades that will keep their AWACS fleet operational for years to come.” Once NAPMA presented its recommendations later this fall, member nations still have to agree on technical, financial and managerial aspects of the program, she said. A NATO official downplayed the risk to the upgrade program but acknowledged that it still required securing final signatures on multilateral agreements, confirmation of budget arrangements and negotiation of other “last-minute details.” “Despite the complexity of a $1 billion multinational program being conducted by 16 Allies, these preparations are on track. The plan remains to award the contract in December,” the official said. https://www.reuters.com/article/us-nato-boeing-awacs/budget-spat-puts-boeing-contract-for-awacs-upgrades-at-risk-sources-idUSKCN1VC2NN

  • Contract Awards by US Department of Defense - June 29, 2020

    June 30, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - June 29, 2020

    NAVY Huntington Ingalls Inc., Pascagoula, Mississippi, is awarded a $936,032,309 fixed-price-incentive-firm-target modification to previously awarded contract N00024-18-C-2307 to exercise the fiscal 2020 option for the construction of a USS Arleigh Burke DDG-51 class ship (DDG 135). This modification also includes options for engineering change proposals, design budgeting requirements and post-delivery availabilities on the fiscal 2020 option ship. If exercised, the cumulative value of the fiscal 2020 option ship will increase to $947,695,871. Work will be performed in Pascagoula, Mississippi (91%); Erie, Pennsylvania (1%); and other locations below 1% (collectively totaling 8%), and is expected to be completed by June 2027. Fiscal 2019 and 2020 shipbuilding and conversion (Navy) funding in the amount of $926,032,309 will be obligated at the time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $360,800,000 not-to-exceed undefinitized contract modification (P00038) to previously awarded fixed-price-incentive-firm-target contract N00019-17-C-0001. This modification provides for the procurement of four F-35C Carrier Variant Lot 14 aircraft for the Navy. Work will be performed in Fort Worth, Texas (63%); El Segundo, California (14%); Warton, United Kingdom (9%); Orlando, Florida (4%); Nashua, New Hampshire (3%); Baltimore, Maryland (3%); San Diego, California (2%); various locations within the continental U.S. (1.3%); and various locations outside the continental U.S. (0.7%). Work is expected to be completed by May 2023. Fiscal 2020 aircraft procurement (Navy) funds for $170,000,000 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. Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $67,690,000 not-to-exceed modification (P00004) to previously awarded fixed-price-incentive-firm-target advance acquisition contract N00019-20-C-0009. This modification procures long lead materials, parts, components and support necessary to maintain on-time production and delivery of nine lot 16 F-35A Lightning II aircraft for the government of The Netherlands, as well as seven F-35A semiconductors and two F-35B Lightning II aircraft for the government of Italy. Work will be performed in Cameri, Italy (24%); Fort Worth, Texas (22%); El Segundo, California (11%); Warton, United Kingdom (7%); Baltimore, Maryland (4%); Nashua, New Hampshire (3%); San Diego, California (2%); various locations within the continental U.S. (21%); and various locations outside the continental U.S. (6%). Work is expected to be completed by May 2025. Non-Department of Defense participant funds in the amount of $67,690,000 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. Applied Systems Engineering, Niceville, Florida, is awarded a $48,640,357 indefinite- delivery/indefinite-quantity, firm-fixed-price delivery orders contract with a five-year ordering period to provide Selective Availability Anti-Spoofing Module (SAASM) Advanced Tactical Navigator (ATACNAV) units, SAASM ATACNAV-High Accuracy (HA) units, SAASM ATACNAV-HA-Single Enclosure. ATACNAV mini purchases, ATACNAV units, reconfigurable avionics test sets and global positioning system military code receivers. In addition to procurement of ATACNAV units, system upgrades and repairs from Applied Systems Engineering will be required throughout the life of the contract. The program is in support of the Weapons Control and Integration Department (H) of the Naval Surface Warfare Center, Dahlgren Division and Battle Management Systems Program. This contract does not include options. Work will be performed in Niceville, Florida, and is expected to be completed by June 2025. Fiscal 2018 procurement defense agencies funding in the amount of $692,493 will be obligated on the first delivery order at the time of award and will not expire at the end of the current fiscal year. This contract was procured sole-source in accordance with 10 U.S. Code 2304c1, with one responsible source. The Naval Surface Warfare Center, Dahlgren Division, Dahlgren, Virginia, is the contracting activity (N00178-20-D-4400). IAP World Services Inc., Cape Canaveral, Florida, is awarded a $13,586,127 firm-fixed-price modification to increase the maximum dollar value of an indefinite delivery/indefinite quantity contract for the exercise of an option for base operating support services at the Naval Air Station Patuxent River. After award of this option, the total cumulative contract value will be $119,645,912. Work will be performed in Patuxent River, Maryland. The work to be performed provides for recurring and non-recurring facility maintenance; facility investment; integrated solid waste management; swimming pool; wastewater; water; and environmental management. Work is expected to be completed by December 2020. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $13,586,127 are obligated on this award and will not expire at the end of the current fiscal year. This award is issued under Federal Acquisition Regulation Part 6.302-2, “Unusually and Compelling Urgency.” The purpose of this modification is to ensure critical services continue as the agency responds to a post-award protest on the re-procurement of this contract. A total funding amount of $8,808,011 will be obligated at the time of award. The Naval Facilities Engineering Command, Washington, D.C., is the contracting activity (N40080-14-D-0302). Lockheed Martin Corp., Fort Worth, Texas, is awarded an $11,610,581 firm-fixed-price order (N00019-20-F-0022) against previously issued basic ordering agreement N00019-19-G-0008. This order procures intel diminishing manufacturing sources parts that have reached end of life in support of the F-35 Lightning II Program future aircraft deliveries for the Air Force, Navy, Foreign Military Sales customers and non-Department of Defense (DOD) participants. Work will be performed in Fort Worth, Texas, and is expected to be completed by October 2020. Fiscal 2018 aircraft procurement (Air Force) funds in the amount of $2,356,880; fiscal 2018 aircraft procurement (Navy) funds in the amount of $2,056,717; fiscal 2020 aircraft procurement (Air Force) funds in the amount of $1,619,315; fiscal 2020 aircraft procurement (Navy) funds in the amount of $631,782; non-DOD participant funds in the amount of $3,982,886; and Foreign Military Sales funds in the amount of $963,001, will be obligated at time of award, $4,413,597 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Northrop Grumman Systems Corp., Herndon, Virginia, is awarded a $9,528,561 modification (P00028) to previously awarded firm-fixed-price contract N00019-17-C-0009. This modification provides for the installation of the multi-role tactical common data link into two E-6B Mercury aircraft. Work will be performed in San Diego, California (56%); and Lake Charles, Louisiana (44%), and is expected to be completed by October 2021. Fiscal 2020 aircraft procurement (Navy) funds for $9,528,561 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. AREPII SA Hotel LLC, doing business as Sheraton Atlanta Hotel, Atlanta, Georgia, is awarded an $8,139,274 firm-fixed-price, three-month contract for lodging, meal and laundry services. This contract includes one three-month option period which, if exercised, will bring the cumulative value of this contract to $15,970,741. Work will be performed in Atlanta, Georgia. Work is expected to be completed October 2020. If all options are exercised, work will continue through January 2021. Fiscal 2020 military personnel (Marine Corps) funds in the amount of $8,139,274 will be obligated at the time of award and will expire at the end of the current fiscal year. This contract was competitively procured via the beta.SAM.gov website and 23 proposals were received. The Regional Contracting Office, Parris Island, South Carolina, is the contracting activity for (M00263-20-C-0001). ARMY Sharp Minds LLC,* Alexandria, Virginia, was awarded a $473,021,064 hybrid (firm-fixed-price and time-and-materials) contract to provide Letterkenny Army Depot with labor support. Bids were solicited via the internet with five received. Work will be performed in Chambersburg, Pennsylvania, with an estimated completion date of Jan. 31, 2026. Fiscal 2020 Army working capital funds in the amount of $26,577,042 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W911N2-20-F-0494). Raytheon/Lockheed Martin Javelin JV, Tucson, Arizona, was awarded a $25,408,756 modification (P00353) to contract W31P4Q-04-C-0046 for support services for the Javelin weapon system. Work will be performed in Tucson, Arizona, with an estimated completion date of June 30, 2025. Fiscal 2020 Foreign Military Sales (United Kingdom) funds in the amount of $25,408,756 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. General Dynamics Mission Systems, Taunton, Massachusetts, was awarded a $19,298,469 cost-plus-fixed-fee contract to procure engineering and testing contractor support services. Bids were solicited via the internet with one received. Work will be performed in Taunton, Massachusetts, with an estimated completion date of June 30, 2021. Fiscal 2018 and 2020 other procurement (Army) funds in the amount of $19,298,469 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W15P7T-20-F-0159). Welch Construction Inc.,* Marcellus, New York, was awarded a $15,000,000 firm-fixed-price contract for repair and construction of real property facilities at Watervliet Arsenal, New York. Bids were solicited via the internet with four received. Work locations and funding will be determined with each order, with an estimated completion date of June 21, 2025. U.S. Army Corps of Engineers, New York, New York, is the contracting activity (W912DS-20-D-0005). Skookum Educational Programs, Bremerton, Washington, was awarded a $9,971,669 firm-fixed-price contract for inspection, testing and maintenance work; demand maintenance order work; and preventative maintenance order work and sustainment, restoration and modernization services in support of Fort Riley. Bids were solicited via the internet with one received. Work will be performed at Fort Riley, Kansas, with an estimated completion date of June 28, 2021. Fiscal 2020 operations and maintenance funds in the amount of $3,500,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity (W912DY-20-C-0026). Techwerks LLC,* Arlington Heights, Illinois, was awarded an $8,685,042 modification (P00024) to contract W911QY-17-C-0101 for labor, other direct costs and travel in support of the Walter Reed Army Institute of Research. Work will be performed in Arlington Heights, Illinois, with an estimated completion date of July 1, 2021. Fiscal 2020 research, development, test and evaluation (Army) funds in the amount of $178,340 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. Ross Island Sand & Gravel Co., Portland, Oregon, was awarded an $8,362,290 firm-fixed-price contract for annual maintenance dredging of the Stockton Deep Water Ship Channel. Bids were solicited via the internet with three received. Work will be performed in Stockton, California, with an estimated completion date of Nov. 30, 2020. Fiscal 2020 civil operations and maintenance funds in the amount of $8,362,290 were obligated at the time of the award. U.S. Army Corps of Engineers, San Francisco, California, is the contracting activity (W912P7-20-C-0009). AIR FORCE Georgia Tech Applied Research Corp., Atlanta, Georgia, has been awarded a $22,562,480 cost-plus-fixed-fee modification (P00008) to contract FA8523-18-C-0002 for reactivation of the Band 8 transmitter associated with the AN/ALQ-161A defensive avionics system supporting the B-1B aircraft. The contract modification is for the delivery of a Band 8 reactivation fleet-wide implementation plan. Work will be performed in Atlanta, Georgia, and is expected to be completed June 29, 2022. This award is the result of a sole-source acquisition. Fiscal 2020 operations and maintenance funds in the full amount are being obligated at the time of award. The Electronic Warfare Contracting Branch, Robins Air Force Base, Georgia, is the contracting activity. Spartan Air Academy Iraq LLC, Irving, Texas, has been awarded a $14,769,952 firm-fixed-price modification (P00006) to contract FA8617-20-C-6232 for the Iraq T-6A contractor logistics support and training maintenance program. The modification provides for the exercise of an option to extend the term of the contract for the continued services needed in order to effectively maintain and operate a fleet of 15 T-6A training aircraft. Work will be performed at Balad Air Base, Iraq, and is expected to be completed Dec. 31, 2020. This modification involves 100% Foreign Military Sales (FMS) to Iraq. FMS funds in the full amount will be obligated at the time of award. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. Lockheed Martin Corp., Colorado Springs, Colorado, has been awarded a $7,038,279 firmed-fixed-price contract with some cost-plus-fixed-fee and cost-reimbursable contract line item numbers for follow-on support sustainment of the Republic of Korea Peace Krypton Program. This contract provides for support of the field service representatives, program management, core/field engineering, System Depot Support Facility sustainment, technical manuals sustainment and obsolescence management. Work will be performed in Colorado Springs, Colorado; and Seoul, Republic of Korea, and is expected to be completed Dec. 31, 2020. This contract involves Foreign Military Sales (FMS) to Republic of Korea and is the result of a sole-source acquisition. FMS funds in the full amount are being obligated at the time of the award. The Air Force Life Cycle Management Center, Wright‐Patterson Air Force Base, Ohio, is the contracting activity. (FA8620‐20-C-3099). DEFENSE LOGISTICS AGENCY Jamaica Bearings,* New Hyde Park, New York, has been awarded a maximum $18,230,335 firm-fixed-price contract for wire ring race kits. This is an 18-month contract with a one-year option period. This was a competitive acquisition with one offer received. Locations of performance are South Carolina and New York, with a Dec. 17, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-20-C-0034). U.S. SPECIAL OPERATIONS COMMAND CORRECTION: The contract announced on June 26, 2020, to Arcticom LLC, Anchorage, Alaska (H92240-20-C-0004), for $18,772,155, was announced with an incorrect award date. The correct award date is June 29, 2020. *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2241727/source/GovDelivery/

  • Lockheed Martin Australia awards $37m contract to Safran to provide key systems design for Australia’s Future Submarines

    October 9, 2019 | International, Naval

    Lockheed Martin Australia awards $37m contract to Safran to provide key systems design for Australia’s Future Submarines

    October 8, 2019 - SYDNEY, Australia - Lockheed Martin Australia, together with the Department of Defence, today announced the appointment of Safran Electronics & Defense Australasia Pty Ltd (Safran) to design three major Combat System components for Australia's Future Submarine Program. The $36.77 million contract, which will be in force until May 2023, will see Safran deliver the preliminary and detailed designs for the combat system's optronics search and attack mast, navigation radar and navigation data distribution components. The contract scope will also include delivery of prototypes and interface simulators to enable Lockheed Martin Australia, as the combat system integrator, to conduct further test activities and validate the integrated performance of the combat system in its Adelaide-based Combat System Architecture Laboratory (CSAL). While the contract represents the initial phase of development activities (including the development of design up to and including the component-level critical design reviews), it will also see Safran establish sovereign capabilities at its new facility in Botany, NSW, for the build, integration and ongoing sustainment of these components. As part of its delivery of this work, Safran will subcontract two Australian companies, Acacia Systems and Thomas Global Systems, for the design and development of software and hardware, respectively. The contract will result in more than 11 full-time positions being created and sustained locally across Safran and its partners. Speaking at the PACIFIC 2019 International Maritime Exposition, Lockheed Martin Australia and New Zealand Chief Executive, Joe North, congratulated Safran on the appointment and said he looked forward to working with the Australian team to support the Royal Australian Navy with enhanced sovereign capability. "Lockheed Martin Australia, in concert with the Department of Defence, is committed to maximising opportunities for Australian industry involvement through all phases of the Future Submarine Program," he said. "Safran represents the international benchmark in submarine optronics and navigation systems, and we are honoured to welcome the company and its partners to our Australian combat system team." Safran Electronics & Defense Australasia CEO, Alexis de Pelleport, said the contract represents an important step towards strengthening the company's footprint and workforce in Australia. "The contract with Lockheed Martin Australia and the Department of Defence will allow us to meet our shared objective of supporting local employment and developing Australian expertise at our Botany facility and through our local partners," he said. "We are pleased to be working with Lockheed Martin Australia and the Commonwealth to deliver a superior submarine fleet for the region." About Lockheed Martin Australia Headquartered in Canberra, Lockheed Martin Australia is a wholly-owned subsidiary of Lockheed Martin Corporation. The company employs more than 1000 people in Australia working on a wide range of major programs spanning the aerospace, defence and civil sectors. In 2016 Lockheed Martin Australia was announced as the combat system integrator for Australia's Future Submarine Program, charged with collaborating with the Department of Defence and Naval Group to design a combat system that would provide an enhanced submarine capability for Australia. About Safran Safran is an international high-technology group, operating in the aircraft propulsion and equipment, space and defense markets. Safran has a global presence, with more than 92,000 employees and sales of 21 billion euros in 2018. Safran is listed on the Euronext Paris stock exchange, and is part of the CAC 40 and Euro Stoxx 50 indices. Safran Electronics & Defense Australasia has complete access to Safran's OEM knowledge and global network to locally support its customers. Safran Electronics & Defense Australasia is a wholly-owned subsidiary of Safran Electronics & Defense based in Sydney, Australia. For more information: www.safran-group.com and www.safran-electronics-defense.com / Follow @Safran and @SafranElecDef on Twitter CONTACT US Media Contact • Michelle Scully Head of Communications Australia and New Zealand Lockheed Martin Australia +61 448 032 387 michelle.m.scully@lmco.com Media Contact • Pascal Debergé Press Officer Safran Electronics & Defense +33 1 55 60 41 38 pascal.deberge@safrangroup.com Media Contact • Amaury Finaz Maritime Director Safran Electronics & Defense Australasia +61 429 073 600 amaury.finaz@safrangroup.com View source version on Safran Group: https://www.safran-group.com/media/lockheed-martin-australia-awards-37m-contract-safran-provide-key-systems-design-australias-future-submarines-20191008

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