July 28, 2024 | International, Aerospace
Space Force mulling nuclear protection for missile-tracking satellites
The study could drive changes to future tranches of Space Development Agency and Space Systems Command satellites.
August 19, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
When the challenge of coronavirus becomes a catalyst to change
By: Mike Gruss
One way to understand how the United States' largest defense companies are responding to the coronavirus pandemic is to listen to what their leaders said on the most recent round of earnings calls.
Consider this anecdote from General Dynamics.
Phebe Novakovic, the company's chief executive, told analysts in late July that when COVID-19 struck, “our classified customers closed their sites to all but mission-essential employees. This impacted revenue and earnings and will continue to do so. Some of IT services' highest-margin programs have come to a hard stop because of COVID-19.”
Novakovic described the pandemic as a time of “significant uncertainty.”
That story was not unusual.
David Calhoun, Boeing's CEO, described this as “a historically dynamic and challenging time.” Greg Hayes, Raytheon Technologies' top executive, opened his second-quarter call by stating: “As everyone knows, these last several months have been incredibly challenging.” And Bill Brown, the CEO of L3Harris, said: “The pandemic has challenged us all to find new ways of working effectively.”
To be clear, defense contractors have lost roughly 20 percent of their value in the last six months, by tracking exchange-traded funds. That's the worst run for publicly traded companies in at least a decade.
So what to make of this?
James Taiclet, Lockheed Martin's new leader, said his philosophy is that there may be “an opportunity for us if there is a downturn, we're going to look at the silver linings that may be there.” He was talking about mergers and acquisitions.
But defense companies of all sizes should look for another opportunity: a reason to operate differently, not an excuse to get back to basics. Leaders should reexamine how to embrace new talent, how to effectively telework, and how to add new equipment or partnerships with unexpected sources.
Military leaders for years have said they value agility. Now they will get to watch firsthand who changes, who is prepared for the long term, who adapts and who merely talks about adapting. These “challenges” can give acquisition officials a reason to reward agility.
But back to the earnings calls. Officials hinted about what may happen next, before we — fingers crossed — enter a post-pandemic world. Lockheed's Kenneth Possenriede, the company's chief financial officer, said that while solicitations may be slower getting out the door, final deadlines have not changed.
Brown at L3Harris said: “We believe that the heightened threat environment will drive the trajectory of U.S military spending regardless of the election.”
Novakovic seconded that notion. “There's a general consensus that the threat has not dissipated,” she said. “In fact, arguably some of our potential adversaries have raised additional questions. ... We'll see going forward, but [I'm] not hearing a lot at the grassroots level on ... any pending defense cuts.”
The threat may not have changed. Nor may the business of defense. Yet.
But it's impossible to ignore that almost everything else has.
On the same subject
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May 7, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence
Contract Awards by US Department of Defense - May 6, 2019
AIR FORCE Vital Link Inc., Sealy, Texas, has been awarded a $228,843,057 indefinite-delivery requirements contract for the sustainment of Air Force noise suppressors. This contract provides for the repair, refurbishment and relocation of noise suppressors. Work will be performed at Air Force locations worldwide, and is expected to be complete by Nov. 5, 2029. This award is the result of a competitive acquisition and one offer was received. No funds are being obligated at the time of award. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8534-19-D-0003). The Boeing Co., St. Louis, Missouri, has been awarded a not-to-exceed $35,800,000 delivery order for Radar Modernization Program (RMP) Common Configuration General Purpose Processors (GPP3) and Waveform Generators (WFG). This contract provides for 57 GPP3s and 11 WFGs to ensure a common configuration of the APG-82(v)1 radar, as well as 14 spares. Work will be performed in St. Louis, Missouri, and is expected to be complete by Oct. 31, 2023. This award is the result of a sole-source acquisition. Fiscal 2019 procurement funds in the amount of $17,686,000 are being obligated at the time of award. Air Force Life Cycle Management Center, Fighter/Bomber Directorate, F-15 Division, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8634-19-F-0009). Metis Solutions LLC, Arlington, Virginia, has been awarded a $10,301,762 fixed-price level-of-effort contract for financial services. This contract provides for counter-threat finance services to U.S. Central Command, U.S. Africa Command, and the U.S. European Command areas of responsibility. Work will be performed in several locations worldwide, and is expected to be complete by Oct. 20, 2019. This award is the result of a non‐competitive bridge acquisition and one offer was received. Fiscal 2019 operations and maintenance funds in the full amount are being obligated at the time of award. Headquarters Air Combat Command, Acquisition Management and Integration Center, Joint Base Langley‐Eustis, Virginia, is the contracting activity (FA4890‐19‐C-A007). (Awarded March 20, 2019) CORRECTION: The contract announced on May 2, 2019, for Engility Corp., Andover, Massachusetts (FA8650-19-C-6024), for research and development, included an incorrect award amount. The correct award amount is $57,296,527. DEFENSE LOGISTICS AGENCY Shore Terminals LLC, doing business as NuStar, San Antonio, Texas, has been awarded a $227,733,110 firm-fixed-price contract to receive, store and ship various types of jet fuel. This was a competitive acquisition with one offer received. This is a four-year base contract with one five-year option period. Locations of performance are Texas and California, with a May 6, 2023, performance competition date. Using customers are Navy and Air Force. Type of appropriation is fiscal 2019 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE603-19-C-5006). Point Blank Enterprises, Pompano Beach, Florida, has been awarded a maximum $92,881,740 firm-fixed-price, indefinite-quantity contract for enhanced small arms protective inserts. This contract was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a one-year contract with no option periods. Location of performance is Florida, with a March 31, 2021, performance completion date. Using military services are Army, Air Force, Navy and Marine Corps. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1154). CORRECTION: The contract announced on May 2, 2019, for Raytheon Co., McKinney, Texas, was announced with an incorrect delivery order number and incorrect basic ordering agreement number. The correct delivery order number is SPRPA1-19-F-CB01 and correct basic ordering agreement number is SPRPA1-19-G-CB01. ARMY Eagle Eye - Enviroworks JV,* Anchorage, Alaska (W9128F-19-D-0034); Ahtna-CDM JV,* Irvine, California (W9128F-19-D-0035); IE- Weston Federal Services JVB LLC,* Pasco, Washington (W9128F-19-D-0036); and Relyant Global LLC,* Maryville, Tennessee (W9128F-19-D-0037), will compete for each order of the $95,000,000 firm-fixed-price contract for rapid disaster infrastructure response. Bids were solicited via the internet with 19 received. Work locations and funding will be determined with each order, with an estimated completion date of May 5, 2024. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity. Cray Inc., Seattle, Washington, was awarded a $22,549,000 firm-fixed-price contract for Department of Defense High Performance Computing Modernization Program's Technology Insertion. Four bids were solicited with four bids received. Work will be performed in Aberdeen Proving Ground, Maryland, with an estimated completion date of Nov. 5, 2025. Fiscal 2018 other procurement, Army funds in the amount of $22,549,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity (W912DY-19-F-0296). Cray Inc., Seattle, Washington, was awarded a $14,549,000 firm-fixed-price contract for Department of Defense High Performance Computing Modernization Program's Technology Insertion. Four bids were solicited with two bids received. Work will be performed in Vicksburg, Mississippi, with an estimated completion date of Nov. 5, 2025. Fiscal 2018 other procurement, Army funds in the amount of $14,549,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity (W912DY-19-F-0298). AAI Corp., doing business as Textron Systems, Hunt Valley, Maryland, was awarded an $8,928,378 cost-plus-fixed-fee Foreign Military Sales (Australia) contract for logistics support. Bids were solicited via the internet with two received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 7, 2020. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-19-F-0407). U.S. SPECIAL OPERATIONS COMMAND n~Ask Inc., Fairfax, Virginia, was awarded a $7,816,490 cost-plus-fixed-fee contract (H92401-19-C-0014) for demonstration of a prototype, modular intelligence, surveillance and reconnaissance small-satellite in support of U.S. Special Operations Command (USSOCOM). Fiscal 2019 research and development funds in the amount of $2,000,000 were obligated at time of award. The work will be performed primarily at the n~Ask Colorado facility. The period of performance is scheduled to run through September 2020. USSOCOM headquarters, Tampa, Florida, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1838303/source/GovDelivery/
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May 2, 2022 | International, Aerospace
Future NGAD fighter jets could cost 'hundreds of millions' apiece
This would be more than twice the F-35'²s price tag of at least $80 million apiece.