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Helmoed-Römer Heitman, Pretoria Saudi Arabia is considering investing in the defence industries of South Africa, the chief executive of Saudi Arabian Military Industries (SAMI) confirmed during the African Aerospace and Defence (AAD) exhibition. Dr Andreas Schwer's comments were made following an earlier vist by SAMI representatives to South Africa to discuss investment in national defence organisation Denel. SAMI's interest has centred on munitions, guided weapons, artillery systems, and optronics and the state-owned organisation has indicated that it would consider establishing a research and development centre in South Africa. SAMI's expression of interest coincided with comments from Denel acting chief executive Mike Kgobe who indicated that his company is actively seeking equity partners. https://www.janes.com/article/83303/sami-looks-to-investment-in-south-africa

WASHINGTON — News that SAIC would buy Engility was just the latest in a recent string of acquisitions among the professional services firms. But if you ask the CEO of SAIC, Tony Moraco, unlike some of the company's peers this was not transformational. This was instead a merging of two complementary businesses. In his words, “a momentum builder, as we are stronger together in the marketplace.” It's also the next phase for a company that technically formed five years ago, with the split of the $11 billion legacy company with the same name. Defense News sat down with Moraco to see how the acquisition fits into SAIC's future strategy, and how far the company has come since gaining independence. About a year after SAIC split from Leidos, I asked you about your vision for the company. And you said to return to an $11 billion company. How does this acquisition fit into your vision for SAIC these days? The Engility acquisition is very much consistent with our current strategy. It is not a deviation or a reset, as perhaps some of the other major transactions have been for some of our peers. But it really is about the theme of being stronger together, with [particular] compatibility of the intelligence community ... and also attributes in space market segments that we think we can both serve better. For us, this is opening market access to channels that we didn't have. It's momentum building, a vision and a strategy that was five years in the making, and it's a continuation of that strategy going forward. So have you been looking for an extended period of time? And why Engility specifically? We consistently look at the market. We were not going to be a high-volume buyer, but more selective. The Scitor [acquisition] was more than three years ago. But we felt that we had a good position in the marketplace to grow organically. And we proved very strong performance over five years and since [that last acquisition of] Scitor. And then we've looked at many deals, large and small, to see what makes the most sense to us, staying true to our strategy. The attraction with Engility was probably first sparked by the multi-intelligence agency portfolio that they have. Instead of buying a number of smaller concentrated firms, we could get a couple agencies in one larger deal. The company is large enough, they have a mature system. Again, in contrast to perhaps some of the small businesses, we think it has been through its own cultural shift to align very much to ours. Also of interest is the space market. Today, with denied access and with the threats that we have, space is becoming a much more serious domain. The U.S. wants to invest more in it for a range of reasons. And when we think about space, it does cross, in fact, with the intelligence community, the defense sector with Air Force and the other services, and then also the civilian agencies with NASA, [and the National Oceanic and Atmospheric Administration]. As that market evolves, I think the U.S. government will be a principal customer. I believe that the commercial space entities will find a way where they'll also require key outsourced space services just as the government had. So for a single transaction at scale where we could in fact use our equity, [and face] probably fewer buyers, filling three or four of our strategic initiatives in market access and in capabilities — we felt it was worth a serious look. But it's not just about space and intel. Defense will still be the largest part of our portfolio — 55 percent after we close [from 61 percent]. With the benefit of having the broader diversification in intel and federal civilian agencies, that serves all of our customers from a technology transfer perspective. We've seen an interesting transition in the market, where the big primes are shedding portions of their services segments. Have we officially returned to the days when manufacturers focus on platforms only and leave the rest to the professional services companies? I think we [for a period of time] faced a market that was uncertain. Our customers were reprioritizing their mission areas, and the industry was doing the same — looking at where they were going to focus their precious dollars, identify businesses they were going to protect, and areas that maybe weren't core. Then as the market started to improve and move away from cost reductions to protect margins to having some cash and some flexibility, you started seeing more portfolio shaping from the larger players. It's not just about scale. There's [a focus on] the diversification because as you know, the whole business is based on past performance and on what qualifications you have in people and in contract vehicles; if you have a broader base concentrated in a few key areas, your ability to compete and win in those domains is improved. There are a lot of technologies that are more heavily influencing the battlefield — whether ISR, electronic warfare, even still cyber, which is evolving. It seems those areas don't fit quite as neatly in one model or the other. We've been around. It's not a body shop service that we run. It is services and solutions. But technology integration is a direct link to the customer's demand for modernization, the interest in innovative solutions from nontraditional players, the ability to field capabilities faster in a much shorter development cycle, and that leads you to a technology integration model that we have. It allows us to take mission understanding and translate requirements into capability needs. So we can integrate, we can innovate with the technology and we can implement the solutions, which is fundamentally what the customer needs to migrate them from a current state to a future state. But we're seeing more and more opportunities through the [Defense Innovation Unit], the [other transaction authorities], and other contract vehicles that provide a little more rapid prototyping flexibility. SAIC bid for the Marine Corps Amphibious Combat Vehicle and is now working to compete for the Army's Mobile Protected Firepower program.How does that all fit into the broader strategy? We do see it as a viable area, and I would characterize it as the next tier of complex technology integration, system integration. It's an extension of our command-and-control and ISR integration. I recall we pushed through 30,000 MRAP systematic build packages. That kind of integration of subsystems into a platform is what we felt was a baseline business that we could look to expand; and as the customer looked at, in this case, starting with Assault Amphibious Vehicle. Not a start-from-scratch build — the survivability upgrade really was around the armor, the underbelly and then your armaments protecting the vehicle. And then the related mobility requirements to change out transmissions and engines to support that extra weight. We felt that those subsystems and our mission knowledge afforded us the ability to extend to a little more of the physical platform itself. We're doing work on the next-gen combat vehicle. And we're using a services model for MPF. Again, nondevelopmental, major integration of existing platforms for rapid field development. That fits well into our technology and integration model. We see the ground vehicles and perhaps maritime [areas] as one that was probably more approachable versus, say, airframes. Modernization of aircraft has its own barriers of entry of getting flight readiness and the like. We've extended our test-equipment knowledge to partnering with Lockheed on the propulsion system for torpedoes, for example. So we're just looking for selective areas to do more complex system integration under this broad technology integration umbrella. It just happens to be bigger subsystems. Complex system integration sets us apart from some of the current peers in the marketplace right now. But we're selective in what we go after. How hard of a hit was the loss of the Marine Corps Amphibious Combat Vehicle in moving forward with that? It's disappointing. We try to be practical and objective about our market position. It's an alternative model. It's still early in the life cycle. But I think that as we see different opportunities, we learn from it as the customers get more comfortable. So yes, disappointing on ACV, but at the same time we learned a lot from it and I think the customer ultimately got a very good result by having a competitive phase. And we think that the Army [with MPF] will be as successful and come up with [the] best solution if they can maintain a competitiveness early in the process. When the split first happened, you and Leidos were generally two different companies. With this acquisition, and with the Leidos acquisition from Lockheed, have you all started to mirror each other more? I think we may be looking a little more alike. Five years ago I did not expect it. I think we had very clear strategies that [we] were intending to diverge, and therefore we did not have any formal noncompetes. We were looking at the services business model, and Leidos was looking to do more system development. I think their execution of that didn't play out as fast as they'd like. Roger [Krone, Leidos CEO], buying back in the services, more of the information system side, was a bit of a surprise. So if anything, they came back towards us versus us changing direction. So I'd say they probably navigated slightly different than expected. But even today we're still two different companies. We're still very focused on letting our investors and customers know what we do, and Leidos still has a pretty diverse portfolio from health systems and some engineering services. We compete in similar subsegments but not in all. We're also organized very differently, we go to market differently. When the deal closes, where does that put your total revenue at? Right around $6.5 billion. You told me you wanted to get back to $11 billion. Should we expect more? No, not right away. That was very tongue in cheek at the time. You knew I'd remember though. Oh, I know. I remember it too, actually, because we laughed. There are lots of things we can do, but I felt very comfortable then and still do that we've got a great future and can grow the business organically as well as through acquisition. But it's not to chase the size. It really is about the market leadership. Running good margins and providing good mission capabilities for our employees. I think our market is still very motivated by mission. Our employees are very motivated to serve in different capacities whether it's in uniform or not. https://www.defensenews.com/interviews/2018/09/24/saic-boss-tackles-engility-acquisition-space-market-and-revenue-goals

By: Joe Gould WASHINGTON — The Pentagon's proposed plan to lower the rate of progress and performance payments some companies receive on defense contracts is sending shockwaves through the industry and invited a backlash from three large trade associations. To incentivize defense firms to work more quickly and more efficiently for the taxpayer, Pentagon leaders want to create a tiered system that recognizes high performing companies with higher performance-based payments. Contractors, however, are balking at the Pentagon's efforts to make them more accountable. While obscure to the general public, the proposed rule changes have rattled government contractors, which argue they would choke off funding for innovation, shackle them with more bureaucracy, increase the cost of military equipment— and hurt profits. The baseline performance- and progress-based payment rate for larger companies would be reset from 80 percent to 50 percent, with incremental increases or decreases based on new criteria proposed by DoD. If a contractor, for instance, delivers end items on time, hits milestone schedules, or avoids serious corrective action requests, it would win 10 percent bumps for each. (Small businesses would have their own schedule of incentives.) The National Defense Industrial Association is calling on DoD to rescind the regulation and collaborate with industry to create a different rule. One objection it has is the proposed rule would determine payment rates based on companies' overall performance, as opposed to contract by contract. “The marching orders from Congress is we have to be faster, more innovative, to do better for the warfighter,” said NDIA Senior Vice President for Policy Wesley Hallman. But, under the proposed rule, a company that wants to take on a high-risk project that fails, “will later be judged on that thing the following December. They're incentivized to take a low-risk approach.” Though Section 831 of the 2017 National Defense Authorization Act encourages DoD to use performance payments, NDIA argues the rule violate's the law's intent and that lessening companies' cash flow would slow payments to subcontractors and sap funding for independent research and development. “We're doing our best to let them know how this will hurt industry,” said NDIA Director of Regulatory Policy Corbin Evans. The trade group's comments were submitted at a public meeting Sept. 14 to consider changes the Pentagon proposed in August to federal acquisitions rules, the Defense Federal Acquisition Regulations Supplement. The Defense Department is holding another public meeting, Oct. 10, before the public comment period ends on Oct. 23. Both the Professional Services Council and the Aerospace Industries Association, which more than 300 companies in the aerospace and defense industry, also offered presentations in opposition. The move toward better stewardship of taxpayer dollars comes amid record Pentagon budget growth and amid a reorganization of the Pentagon's acquisition, technology and logistics office, now due to finish in a few months. The move falls in line with Under Secretary of Defense for Acquisition and Sustainment Ellen Lord's efforts to halve the timeline of major defense acquisition programs, which are notoriously slow. “I believe the lifeblood of most industry is cash flow, so what we will do is regulate the percentage of payments or the amount of profit that can be achieved through what type of performance they demonstrate by the numbers,” Lord said in a Defense News interview last week. Hence, “we're going to begin to reward companies through profit or through progress or performance payments, as a function of how they manage all of that, as well as quality and delivery and a variety of other things,” Lord said. Though it's unclear whether DoD will formally move ahead with the rule by a Dec. 1 deadline, investors have already responded negatively to a reports on the changes, according to aerospace and defense sector analysts at Cowen and Company. “It will be a scramble for companies and DoD to compile the necessary data to evaluate the rate request. Under the current draft rule, DoD would need to evaluate the rate request in just one month for all its suppliers,” Roman Schweizer, of Cowen and Company, said in a note to investors Friday. “We suspect that will be very hard the first time and suggests this year may be too hard.” Still, Cowen analyst Cai von Rumohr downplayed the near-term effects, especially beyond the major primes. He speculated the proposed rule change will have negligible impact on contractor results in 2019 since it doesn't apply to any current contracts; it's very unlikely to go into effect before 2020, if ever; it will not apply to time and materials and fixed-price commercial terms contracts, and because it will only apply to some cost-plus contracts. https://www.defensenews.com/industry/2018/09/24/defense-industry-fighting-dod-proposal-to-change-performance-payments

By Ross Wilkers L3 Technologies has made yet another acquisition to further build its unmanned maritime business, this time in a deal for surface vessel and related control systems provider ASV Global. Terms of the transaction were undisclosed. The deal also brings additional anti-submarine warfare and future surface combatant unmanned off-board sensor offerings, L3 said Monday. Unmanned sea vehicles and associated systems have been a focal point in New York City-based L3's overall push to become what CEO Chris Kubasik has called a “nontraditional sixth prime.” That translates to being a more focused, high-end builder and integrator of technologies and other platforms called out in the 2017 National Security Strategy. L3 went on an unmanned maritime buying spree last year that saw it make deals for undersea drone maker OceanServer, battery and energy technology company Open Water Power and autonomy and sensor system provider Adaptive Methods. Headquartered in Louisiana and the U.K., ASV Global builds unmanned surface vessels sized between 10 and 42 feet that have software, control systems and other autonomy architectures. The company now operates as L3 ASV. Sea is not the only domain where L3 has a buyer with respect to unmanned platforms. In June, the company quietly paid $15 million to buy hybrid quadrotor unmanned aircraft maker Latitude Engineering. L3 has also been busy this year in acquiring companies in information security and space as part of its ongoing sixth prime transformation effort. https://washingtontechnology.com/articles/2018/09/24/l3-unmanned-asv-acquisition.aspx

ARMY EMCOR Government Services Inc., Arlington, Virginia (W91278-18-D-0095); Facility Services Management Inc., Clarksville, Tennessee (W91278-18-D-0096); Hospital Housekeeping Systems LLC, Austin, Texas (W91278-18-D-0097); J&J Maintenance Inc., Austin, Texas (W91278-18-D-0098); Jones Lang LaSalle Americas Inc., Washington, District of Columbia (W91278-18-D-0099); Valiant Government Services LLC, Hopkinsville, Kentucky (W91278-18-D-0100); and VW International Inc.,* Alexandria, Virginia (W91278-18-D-0101), will compete for each order of the $475,000,000 firm-fixed-price contract for operations and maintenance, incidental repair and minor construction to support the U.S. Army Medical Command facilities. Bids were solicited via the internet with seven received. Work locations and funding will be determined with each order, with an estimated completion date of Sept. 23, 2023. U.S. Army Corps of Engineers, Mobile, Alabama, is the contracting activity. Lockheed Martin Corp., Grand Prairie, Texas, was awarded a $289,176,455 modification (P00025) to contract W31P4Q-16-C-0036 for the procurement of 24 M142 High Mobility Artillery Rocket Systems launchers, training, spares and enhanced product improvement modifications. Work will be performed in Grand Prairie, Texas, with an estimated completion date of July 1, 2022. Fiscal 2018 other procurement, Army funds in the amount of $127,313,849 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Great Lake Dredge & Dock Co. LLC, Oak Brook, Illinois, was awarded a $113,167,400 firm-fixed-price contract for two new turning basins, widening, dredging and construction for the deepening and strategic widening of the Jacksonville Harbor Federal Channel and turbidity monitoring, endangered species monitoring, vibration monitoring, beach fill quality control, and sea turtle non-capture trawling. Bids were solicited via the internet with two received. Work will be performed in Jacksonville, Florida, with an estimated completion date of Feb. 11, 2020. Fiscal 2017 and 2018 non-federal and federal operations and maintenance funds in the combined amount of $113,167,400 were obligated at the time of the award. U.S. Army Corps of Engineers, Jacksonville, Florida, is the contracting activity (W912EP-18-C-0021). JCB Inc., Pooler, Georgia, was awarded a $72,757,904 modification (P00009) to contract W56HZV-14-D-0066 for High Mobility Engineer Excavator Type-1 vehicles. One bid was solicited with one bid received. Work locations and funding will be determined with each order, with an estimated completion date of April 28, 2019. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. AM General LLC, South Bend, Indiana, was awarded a $51,302,430 firm-fixed-price contract for recapitalization of the High Mobility Multipurpose Wheeled Vehicles. One bid was solicited with one bid received. Work will be performed in South Bend, Indiana, with an estimated completion date of Aug. 30, 2019. Fiscal 2017 other procurement, Army funds in the amount of $51,302,430 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-18-C-0177). L-3 Communications Corp., Muskegon, Michigan, was awarded a $43,008,895 modification (P00058) to contract W56HZV-15-C-0119 for 184 Hydro Mechanically Propelled Transmissions for the Bradley and Multiple Launch Rocket Systems and ancillary hardware. Work will be performed in Muskegon, Michigan, with an estimated completion date of May 19, 2020. Fiscal 2017 and 2018 other procurement, Army funds in the amount of $43,008,895 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. Benaka Inc.,* New Brunswick, New Jersey, was awarded a $42,654,933 firm-fixed-price contract for renovations to Vermont National Guard Buildings 130, 131, 132, 160 and 360. Bids were solicited via the internet with three received. Work will be performed in South Burlington, Vermont, with an estimated completion date of Feb. 19, 2020. Fiscal 2018 military construction funds in the amount of $42,654,933 were obligated at the time of the award. U.S. Army Corps of Engineers, Concord, Massachusetts, is the contracting activity (W912WJ-18-C-0016). United Excel Corp., Kansas City, Missouri, was awarded a $40,137,541 firm-fixed-price contract for design build construction project that includes: abatement of hazardous materials, demolition of the old Wilford Hall and support buildings, relocation of the communications infrastructure and the construction of new surface parking and green areas, complete with storm drain and detention features. Bids were solicited via the internet with four received. Work will be performed in San Antonio, Texas, with an estimated completion date of March 2, 2021. Fiscal 2014 military construction funds in the amount of $40,137,541 were obligated at the time of the award. U.S. Army Corps of Engineers, Fort Worth, Texas, is the contracting activity (W9126G-18-C-0077). Navistar Defense, Lisle, Illinois, was awarded a $22,103,643 firm-fixed-price Foreign Military Sales (Iraq) contract for 4x4 and 6x6 trucks. Bids were solicited via the internet with one received. Work will be performed in Lisle, Illinois, with an estimated completion date of Sept. 27, 2020. Fiscal 2018 operations and maintenance Army funds in the amount of $22,103,643 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-18-F-0117). Mike Hooks LLC, Westlake, Louisiana, was awarded a $21,052,718 firm-fixed-price contract for maintenance dredging. Bids were solicited via the internet with four received. Work will be performed in Glemora, Louisiana, with an estimated completion date of Sept. 1, 2019. Fiscal 2016, 2017 and 2018 operations and maintenance Army funds in the amount of $21,052,718 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-18-C-0049). Great Lakes Dredge & Dock Company LLC, Oakbrook, Illinois, was awarded an $18,868,500 firm-fixed-price contract for dredging of Morehead City, Wilmington, Savannah and Brunswick harbors. Bids were solicited via the internet with two received. Work will be performed in Morehead City, North Carolina; Wilmington, North Carolina; Savannah, Georgia; and Brunswick, Georgia, with an estimated completion date of April 15, 2019. Fiscal 2016, 2017 and 2018 operations and maintenance Army funds in the amount of $17,148,811 were obligated at the time of the award. U.S. Army Corps of Engineers, Wilmington, North Carolina, is the contracting activity (W912PM-18-C-0020). Citi Approved Enterprise LLC,* Harvey, Louisiana, was awarded a $13,195,792 firm-fixed-price contract for Atchafalaya Basin floodway, Boeuf Lock, 2018 south chamber guide wall replacement. Bids were solicited via the internet with six received. Work will be performed in Morgan City, Louisiana, with an estimated completion date of April 30, 2020. Fiscal 2018 Mississippi River and Tributaries funds in the amount of $13,195,792 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-18-C-0052). Lobar Inc., Dillsburg, Pennsylvania, was awarded an $11,968,000 firm-fixed-price contract for restoration and modernization of Building 328. Bids were solicited via the internet with six received. Work will be performed in Aberdeen Proving Ground, Maryland, with an estimated completion date of March 16, 2020. Fiscal 2018 operations and maintenance Army funds in the amount of $11,968,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Baltimore, Maryland, is the contracting activity (W912DR-18-C-0042). Miami Technology Solutions LLC,* Reston, Virginia, was awarded a $10,999,310 firm-fixed-price contract for road repairs at Arlington National Cemetery. One bid was solicited with one bid received. Work will be performed in Arlington, Virginia, with an estimated completion date of March 23, 2023. Fiscal 2018 military construction funds in the amount of $10,999,310 were obligated at the time of the award. U.S. Army Corps of Engineers, Norfolk, Virginia, is the contracting activity (W91236-18-C-0021). CACI NSS Inc., Chantilly, Virginia, was awarded a $10,407,551 firm-fixed-price contract for information technology and information management services. Bids were solicited via the internet with two received. Work will be performed in Fort Detrick, Maryland, with an estimated completion date of May 31, 2023. Fiscal 2018 Defense Health Program operations and maintenance; Defense Health Program research, development, test and evaluation; Veterans Affairs operations and maintenance; and Air Force operations and maintenance funds in the amount of $10,407,551 were obligated at the time of the award. U.S. Army Medical Research Acquisition Activity, Fort Sam Houston, Texas, is the contracting activity (W81XWH-18-F-0361). General Constructors Inc. of the Quad Cities,* Bettendorf, Iowa, was awarded a $10,405,500 firm-fixed-price contract for Mississippi River basin, river project office, Lock and Dam 14, and dock wall repair. Bids were solicited via the internet with four received. Work will be performed in Pleasant Valley, Iowa, with an estimated completion date of April 2, 2020. Fiscal 2018 operations and maintenance Army funds in the amount of $10,405,500 were obligated at the time of the award. U.S. Army Corps of Engineers, Rock Island, Illinois, is the contracting activity (W912EK-18-C-0036). Manson Construction Co., Seattle, Washington, was awarded a $10,162,000 firm-fixed-price contract for Atchafalaya River and Bayous Chene, Boeuf and Black, Atchafalaya Bay and Bar Channel, maintenance dredging. Bids were solicited via the internet with two received. Work will be performed in St. Mary Parish, Louisiana, with an estimated completion date of March 23, 2019. Fiscal 2018 operations and maintenance Army funds in the amount of $10,162,000 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-18-C-0051). Pacific Shipyards International LLC,* Honolulu, Hawaii, was awarded a $10,031,114 firm-fixed-price contract for Essayons Dredge ship overhaul. Bids were solicited via the internet with two received. Work will be performed in Honolulu, Hawaii, with an estimated completion date of April 30, 2019. Fiscal 2018 operations and maintenance Army funds in the amount of $10,031,114 were obligated at the time of the award. U.S. Army Corps of Engineers, Portland, Oregon, is the contracting activity (W9127N-18-F-0178). GWWO Inc., Baltimore, Maryland, was awarded a $10,000,000 firm-fixed-price contract for architect-engineering services. Bids were solicited via the internet with 23 received. Work locations and funding will be determined with each order, with an estimated completion date of Sept. 23, 2023. U.S. Army Corps of Engineers, Norfolk, Virginia, is the contracting activity (W91236-18-D-0008). Woolpert Inc., Dayton, Ohio, was awarded a $10,000,000 firm-fixed-price contract for architect-engineering services. Bids were solicited via the internet with 23 received. Work locations and funding will be determined with each order, with an estimated completion date of Sept. 23, 2023. U.S. Army Corps of Engineers, Norfolk, Virginia, is the contracting activity (W91236-18-D-0012). Leidos Inc., Reston, Virginia, was awarded a $9,805,063 cost-plus-fixed-fee contract to complete the integration, testing, and qualification of the design developed under Phase III of the RQ-7B Shadow Assured Positioning, Navigation, and Timing program. Three bids were solicited with two bids received. Work will be performed in Redstone Arsenal, Alabama, with an estimated completion date of Sept. 30, 2020. Fiscal 2018 research, development, test and evaluation funds in the amount of $5,272,645 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911QY-18-F-0687). Dubuque Barge and Fleeting Service Co.,* Dubuque, Iowa, was awarded a $7,475,000 firm-fixed-price contract for removal of dredge material from Corps Island. Bids were solicited via the internet with two received. Work will be performed in Red Wing, Minnesota, with an estimated completion date of Nov. 29, 2019. Fiscal 2018 operations and maintenance funds in the amount of $7,475,000 were obligated at the time of the award. U.S. Army Corps of Engineers, St. Paul, Minnesota, is the contracting activity (W912ES-18-C-0010). AIR FORCE The Boeing Co., Ridley Park, Pennsylvania, has been awarded a $375,550,368 firm-fixed-price contract for the non-developmental item integration of four aircraft to replace the UH-1N. This is the basic award of a contract (including options) valued at approximately $2,380,000,000, which will provide for the acquisition and sustainment of up to 84 MH-139 helicopters, training devices, and associated support equipment. The location of performance is predominantly in Ridley Park, Pennsylvania; and Philadelphia, Pennsylvania. If all options are exercised, the work is expected to be completed by September 2031. This award is a result of a competitive acquisition. Fiscal 2018 research, development, test, and evaluation funds in the amount of $98,000,000 are being obligated at the time of award. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8739-18-C-5030). Integrated Solutions for Systems Inc., Huntsville, Alabama, has been awarded a $17,500,000 indefinite-delivery/indefinite-quantity contract for the Weapons Effects Simulation Testing effort. This contract provides for research and development concepts and conventional inventory weapon systems. Work will be performed at Eglin Air Force Base, Florida, and is expected to be completed by Sept. 27, 2023. This award is the result of a broad agency announcement. Fiscal year 2018 research, development, test and evaluation funds in the amount of $50,000 is being obligated at the time of award. Air Force Research Laboratory, Eglin AFB, Florida, is the contracting activity (FA8651-18-D-0023/FA8651-18-F-0027). Universal Propulsion Co. Inc., Fairfield, California, has been awarded a $10,688,524 contract for supply of Modernized ACES II Electronic Sequencer for the ejection seat on some U.S. and Foreign Military Sales (FMS) aircraft. Work will be performed in Fairfield, California, and is expected to be completed by May 31, 2019. The contract involves foreign military sales to Oman, Portugal, Poland, Bahrain, Romania, Denmark, Singapore, Greece, Egypt, South Korea, Netherlands, Morocco, Saudi Arabia and Pakistan. This award is the result of a sole-source acquisition. Fiscal 2018 funding in the amount of $3,436,768; and FMS funding in the amount of $7,251,756 are being obligated at the time of award. Air Force Life Cycle Management Center, Hill Air Force Base, Utah, is the contracting activity (FA8213-18-C-0002). North Star Construction, Yuba City, California; and Beale Air Force Base, California, has been awarded a $9,749,650 modification to contract FA4686-17-D-0001 for 60KV power lines. Work will be performed at Beale Air Force Base, California, and is expected to be completed by Oct. 3, 2019. Fiscal 2018 operations and maintenance funds in the amount of $9,749,650 are being obligated at the time of award. Total cumulative face value of the contract is $14,081,711. The 9th Contracting Squadron, Beale Air Force Base, California, is the contracting activity. NAVY Centerra Integrated Services LLC, Palm Beach Gardens, Florida (N69450-18-D-1312); Islands Mechanical Contractor Inc.,* Middleburg, Florida (N69450-18-D-1313); Munilla Construction Management LLC, Miami, Florida (N69450-18-D-1314); Ratcliff Construction Inc.,* Orange Park, Florida (N69450-18-D-1315); The Ross Group Construction Corp., Tulsa, Oklahoma (N69450-18-D-1316); and RQ-AECOM JV, Carlsbad, California (N69450-18-D-1317), are each awarded an indefinite-delivery/indefinite-quantity multiple award design-build construction contract for construction projects located primarily within the Naval Facilities Engineering Command Southeast area of responsibility. The maximum dollar value including the base period and four option years for all six contracts combined is $240,000,000. The work to be performed provides for, but is not limited to, general building type projects (new construction, renovation, alteration, demolition, and repair work) including industrial, airfield, aircraft hangar, aircraft traffic control, infrastructure, administrative, training, dormitory, and community support facilities. No task orders are being issued at this time. Work will be performed in Guantanamo Bay, Cuba. The term of the contract is not to exceed 60 months, with an expected completion date of September 2023. Fiscal 2018 operations and maintenance (Navy) contract funds in the amount of $6,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by operations and maintenance (Navy); and Navy working capital funds. This contract was competitively procured via the Navy Electronic Commerce Online website with 18 proposals received. These six contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity. Black Construction Corp., Harmon, Guam, is awarded an $82,028,150 firm-fixed-price contract for the design and construction of an aircraft maintenance facility and a corrosion control hangar with supporting facilities at Joint Region Marianas, Andersen Air Force Base. The work to be performed provides for the design and construction of (1) a low-rise airframes shop facility with slab-on-grade shallow foundation, reinforced concrete walls and roof, including windows, mechanical, and electrical systems appropriate to Guam earthquake and environmental conditions; and (2) a high-bay corrosion control hangar consisting of two bays: a planned maintenance interval bay and a corrosion control bay. The contract also contains two unexercised options, which if exercised, would increase cumulative contract value to $82,970,000. Work will be performed in Yigo, Guam, and is expected to be completed by January 2021. Fiscal 2018 military construction (Navy) contract funds in the amount of $82,028,150 are obligated on this 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 five proposals received. The Naval Facilities Engineering Command, Pacific, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity (N62742-18-C-1300). Lockheed Martin, Rotary and Mission Systems, Moorestown, New Jersey, is awarded a $78,276,516 cost-plus-incentive-fee modification to previously-awarded contract N00024-13-C-5116 for Aegis Combat System Engineering Agent efforts for the design, development, integration, test and delivery of Advanced Capability Build 20. Work will be performed in Moorestown, New Jersey, and is expected to be completed by December 2021. Fiscal 2018 research, development, test and evaluation (Navy) funding in the amount of $8,601,589 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. The Raytheon Co., McKinney, Texas, is awarded $46,114,946 for modification P00028 to a previously awarded firm-fixed-price, cost-plus-fixed-fee contract (N00019-15-C-0116) for the procurement of four APY-10 radar system production kits for the Navy, eight for the government of the United Kingdom, four for the government of Australia, and related services in support of P-8A Poseidon aircraft production Lots 8 and 9. Work will be performed in McKinney, Texas (77.1 percent); Andover, Massachusetts (7.1 percent); Chelmsford, Massachusetts (3.4 percent); Woodland Park, New Jersey (3.4 percent); Black Mountain, North Carolina (1.8 percent); San Carlos, California (1.7 percent); Ashburn, Virginia (1.6 percent); Etobicoke, Ontario, Canada (1.4 percent); Simsbury, Connecticut (1.3 percent); and Clearwater, Florida (1.2 percent), and is expected to be completed in September 2022. Fiscal 2018 aircraft procurement (Navy); and Foreign Military Sales (FMS) funds in the amount of $46,114,946 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This modification combines purchases for the Navy ($11,371,053; 25 percent); and FMS ($34,743,893; 75 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Systems Application and Technologies Inc., Largo, Maryland, is awarded a $39,688,979 indefinite-delivery/indefinite-quantity level of effort contract incorporating one firm-fixed-price contract line item number (CLIN), one cost-plus-fixed-fee CLIN and one cost-type CLIN for other direct costs for Waterfront Operations Support Services. Waterfront Operations Support includes the operation of small watercraft, industrial maintenance and repair, and research and development, test, and evaluation project support with transition, program management, operations management of Building V-47 Naval Station Norfolk, Virginia, reporting, and safety compliance oversight. Work will be performed in Norfolk, Virginia, and is expected to be completed by September 2023. Fiscal 2018 service cost center funding in the amount of $512,804 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with five offers received. The Naval Surface Warfare Center, Carderock Division, West Bethesda, Maryland, is the contracting activity (N00167-18-D-0009). Alion Science and Technology Corp., Washington, District of Columbia (N64498-18-D-4025); Amee Bay LLC,* Anchorage, Alaska (N64498-18-D-4026); American Systems Corp., Chantilly, Virginia (N64498-18-D-4027); Gibbs & Cox Inc., Arlington, Virginia (N64498-18-D-4028); L-3 Unidyne Inc., Norfolk, Virginia (N64498-18-D-4029); Life Cycle Engineering Inc., Charleston, South Carolina (N64498-18-D-4030); McKean Defense Group LLC, Washington, District of Columbia (N64498-18-D-4031); and NDI Engineering Co.,* Thorofare, New Jersey (N64498-18-D-4032), were awarded indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee contracts for technical and engineering services in support of in-service engineering roles and responsibilities for electrical power and generation systems installed on surface ships, submarines and assault craft. Alion Science and Technology Corp. will receive $38,625,259; Amee Bay LLC will receive $42,193,792; American Systems Corp. will receive $38,369,064; Gibbs & Cox Inc. will receive $33,953,721; L-3 Unidyne Inc. will receive $44,042,794; Life Cycle Engineering Inc. will receive $45,122,812; McKean Defense Group LLC will receive $41,480,653; and NDI Engineering Co. will receive $42,555,850. Work will be performed at the contractors' facilities and on-site at the Naval Surface Warfare Center, Philadelphia Division in Philadelphia, Pennsylvania, and is expected to be completed by September 2023. Fiscal 2018 operations and maintenance (Navy); and fiscal 2018 other procurement (Navy) funding in the amount of $1,492,330 will be obligated at time of award and funds in the amount of $581,400 will expire at the end of the current fiscal year. These contracts were competitively procured via the Federal Business Opportunities website, with eight offers received. The Naval Surface Warfare Center, Philadelphia Division, Philadelphia, Pennsylvania, is the contracting activity. (Awarded Sept. 21, 2018) URS Group Inc., Morrisville, North Carolina, is awarded $35,700,172 for firm-fixed-price task order N6945018F0085 under a previously awarded, multiple award construction contract (N62470-13-D-6022) for construction of phase two of Hurricane Irma repairs at Naval Submarine Base Kings Bay. The work to be performed provides for a modified/hybrid design build where the contractor is required to provide a designer of record for design development and design, construction submittal approval and oversight of all repairs such as building interiors/exteriors, roofs, piers, and wharfs as a result of Hurricane Irma. Work also includes any and all ancillary and incidental mechanical and electrical support services needed to accomplish required work including, but not limited to, disconnects, temporary reconnects, removals, extensions, modifications, alterations, reinstalls, new components, and permanent reconnects necessary for functional operation. Work will be performed in Kings Bay, Georgia, and is expected to be completed by March 2020. Fiscal 2018 operations and maintenance(Navy) contract funds in the amount of $35,700,172 are obligated on this award and will expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity. BAE Systems Land and Armaments, Louisville, Kentucky, is awarded an $18,499,843 firm-fixed-price delivery order basic ordering agreement N00174-18-G-0001 under previously-awarded contract N00174-18-F-0469 for Mk 38 machine gun system coaxial kits. This delivery order will provide all of the necessary materials and services required to manufacture, assemble, inspect, preserve, package and ship coaxial kits to support operations and maintenance for the Mk 38 machine gun systems used by the Navy and Coast Guard. Work will be performed in Louisville, Kentucky (83 percent); and Mesa, Arizona (17 percent), and is expected to be completed by June 2020. Fiscal 2017 and 2018 weapons procurement (Navy) funding; and fiscal 2018 weapons procurement (Coast Guard) funding in the amount of $18,499,843 will be obligated on the delivery order at time of award and will not 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. Architects Pacific Inc.,* Honolulu, Hawaii, is awarded a maximum amount $15,000,000 indefinite-delivery/indefinite-quantity architect-engineering contract for design, engineering, specification writing, cost estimating, and related services at various locations in the Naval Facilities Engineering Command (NAVFAC) Hawaii area of responsibility (AOR). The work to be performed provides for design and engineering services for specifications, cost estimates, design-build and design-bid-build (DBB) projects with associated multi-discipline architect-engineering support services including alterations, repair of buildings, structures and minor construction of various base development facility types. Initial task order is being awarded at $592,254 for a DBB construction package, consisting of full plans, specifications, detailed cost estimate, and other services to replace the roof on Pacific Air Forces Wing Headquarters Building 1102H at Joint Base Pearl Harbor-Hickam, Hawaii. Work for this task order is expected to be completed by July 2019. All work on this contract will be performed at various Navy and Marine Corps facilities and other government facilities within the NAVFAC Hawaii AOR. The term of the contract is not to exceed 60 months with an expected completion date of September 2023. Fiscal 2018 operations and maintenance (Navy) contract funds in the amount of $592,254 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by operations and maintenance (Navy and Marine Corps); and Navy working capital funds. This contract was competitively procured via the Navy Electronic Commerce Online website with seven proposals received. The Naval Facilities Engineering Command, Hawaii, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity (N62478-18-D-5031). Global Connections to Employment Inc., Pensacola, Florida, is awarded $13,028,622 for modification P00010 to extend the previously awarded firm-fixed-price contract (N68836-17-C-0005) to exercise option period two for full food and mess attendant services in support of Naval Air Station, Pensacola; and Navy Explosive Ordnance Disposal School Elgin Air Force Base; and mess attendant services in support of Naval Construction Battalion Center, Gulfport. The contract includes a one-month base period, two 12-month option periods, one 11-month option period, and a six-month extension option, which if all options are exercised, would bring the cumulative value of this contract to $45,737,677. Work will be performed in Pensacola, Florida (60 percent); Elgin AFB, Florida (20 percent); and Gulfport, Mississippi (20 percent), and work is expected to be completed by September 2019. If all options on the contract are exercised, work will be completed by February 2021. Subject to the availability of funds, fiscal 2019 operations and maintenance (Navy) funds in the amount of $13,028,622 will be incrementally funded throughout year, and funds will not expire at the end of the current fiscal year. This contract is a sole-source procurement under the AbilityOne Program (Federal Acquisition Regulation Part 8.704). with one offer received. Naval Supply Systems Command Fleet Logistics Center, Jacksonville, Florida, is the contracting activity. URS Group Inc., Morrisville, North Carolina, is awarded $12,278,673 for firm-fixed-price task order N6247018F9004 under a previously awarded multiple award global contingency construction contract (N62470-13-D-6022) for emergency runway repairs at Camp Baledogle, Somalia. The work to be performed provides for repairs to runway consisting of full depth patching and overlay to allow required airfield operations. Work will be performed in Baledogle, Somalia, and is expected to be completed by September 2019. Fiscal 2018 operations and maintenance (Navy) contract funds in the amount of $12,278,673 are obligated on this award and will expire at the end of the current fiscal year. One proposal was received for this task order. The Naval Facilities Engineering Command, Atlantic, Norfolk, Virginia, is the contracting activity. Northrop Grumman Systems Corp., San Diego, California, is awarded $11,900,000 for modification P00002 to a previously awarded cost-plus-fixed-fee contract (N00019-18-C-1009) to provide continuing operations and maintenance efforts in support of the Broad Area Maritime Surveillance - Demonstrator Program (BAMS-D) program. This modification will allow the BAMS-D unmanned aircraft system to remain fully compliant with U.S. and overseas air traffic control authorities by modernizing the transponder and adding the Automatic Dependent Surveillance-Broadcast capability to the aircraft. Work will be performed in Rancho Bernardo, California (75 percent); and Patuxent River, Maryland (25 percent), and is expected to be completed in June 2020. Fiscal 2018 operations and maintenance (Navy) funds in the amount of $11,900,000 are being obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. The Boeing Co., Seattle, Washington, is awarded $9,044,214 for modification P00127 to a previously awarded fixed-price-incentive, firm-fixed-price contract (N00019-14-C-0067). This modification provides for incorporation of P-8A change proposals 809-05553 “Optical Sensor Capability”; and 809-05450 “A-Kit and Aircraft Updates” into 18 full-rate production Lot 7) P-8A aircraft for the Navy. Work will be performed in Jacksonville, Florida (93 percent); and Seattle, Washington (7 percent), and is expected to be completed in August 2021. Fiscal 2016 aircraft procurement (Navy) funds in the amount of $9,044,214 will be obligated at time of award, all 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 Triumph Engine Control Systems LLC, West Hartford, Connecticut, has been awarded a maximum $77,507,491 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for control units. This is a five-year contract with no option periods. This was a limited competitive acquisition using justification from Federal Acquisition Regulation 6.302-1(a)(2), which states only one responsible source and no other supplies or services will satisfy agency requirements, and extended to include only one or a limited number of responsible sources. Location of performance is Connecticut, with a Sept. 30, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 through 2023 Army working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Redstone Arsenal, Alabama (SPRRA1-18-D-0200). (Awarded Sept. 21, 2018) EFW Inc., Fort Worth, Texas, has been awarded a maximum $68,255,051 undefinitized, firm-fixed-priced delivery order (SPRPA1-18-F-L803) against a five-year basic ordering agreement (SPRPA1-13-G-004X) for various display replacements in support of the F/A-18 aircraft. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulations 6.302-1. Location of performance is Texas, with a May 11, 2022, performance completion date. Using service is Navy. Type of appropriation is fiscal 2018 Navy working capital funds and Navy aircraft procurement funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. Oakes Farms Food & Distribution Services LLC,* Naples, Florida, has been awarded a maximum $45,000,000 firm-fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for fresh fruits and vegetables. This was a competitive acquisition with four responses received. This is a 54-month contract with no option periods. Location of performance is Florida, with a March 23, 2023, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps, Coast Guard, and Department of Agriculture schools. Type of appropriation is fiscal 2018 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-18-D-P335). Ruta Supplies Inc., Dover, New Jersey, has been awarded a maximum $15,241,323 firm-fixed-price contract for pneumatic supplies. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c) (1), based on Federal Acquisition Regulation 6.302-1(a)(2). This is a three-year base contract with two one-year option periods. Location of performance is New Jersey, with a Sept. 23, 2021, performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2018 through 2021 defense working capital funds. The contracting activity is Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7LX-18-D-0102). Aerocontrolex Group Inc., doing business as TransDigm Inc., South Euclid, Ohio, has been awarded a maximum $7,536,743 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for aviation spare parts. This was a competitive acquisition with two responses received. This is a three-year base contract with one two-year option period. Location of performance is Ohio, with a Sept. 30, 2021, performance completion date. Using customer is Defense Logistics Agency. The type of appropriation is fiscal 2018 through 2021 defense working capital funds. The contracting activity is Defense Logistics Agency Aviation, Ogden, Utah (SPE4AX-18-D-9007). DEFENSE INTELLIGENCE AGENCY Prescient Edge Corp., McLean, Virginia, has been awarded a base-year plus four option years, with a potential six-month extension of services, time and materials contract (HHM402-18-C-0056) with an estimated ceiling of $65,080,499 to provide counterintelligence activity support services for the Defense Intelligence Agency's (DIA) Office of Counterintelligence Counterespionage Division. Through this award, DIA will procure services to identify and neutralize threats to DIA personnel, information and missions. Work will be performed in the National Capital Region with an expected completion date of March 23, 2024. Fiscal 2018 operations and maintenance funds in the amount of $7,286,800 are being obligated at time of award. This contract has been awarded through a 100 percent small business set-aside full and open competition and 20 offers were received. The Virginia Contracting Activity, Washington, District of Columbia, is the contracting activity. DEFENSE THREAT REDUCTION AGENCY URS Federal Services International Inc., Aberdeen Proving Ground, Maryland, has been awarded a $42,825,276 ceiling cost-plus-fixed-fee task order under the Defense Threat Reduction Agency (DTRA) indefinite-delivery/indefinite-quantity (IDIQ) Cooperative Threat Reduction Integrating Contractor (CTRIC) III HDTRA1-18-D-0005 for Vietnam Increment II. This contract is for technical services in Vietnam to support the Weapons of Mass Destruction – Proliferation Prevention Program. The anticipated completion date is Sept. 23, 2021, and includes options for additional site surveys and execution. This task order was competitively sourced under CTRIC III IDIQ and the government received three offers. Performance of this contract will take place at various locations throughout Vietnam. Fiscal 2018 CTR funds in the amount of $5,400,000 are being obligated at time of award. The Defense Threat Reduction Agency, Fort Belvoir, Virginia, is the contracting activity (HDTRA1-18-F-0114). (Awarded Sept. 20, 2018) *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1643658/source/GovDelivery/

WASHINGTON, D.C. (AFNS) -- Today the Air Force awarded the first portion of a $2.38 billion firm-fixed-price contract to The Boeing Company for a UH-1N Replacement helicopter. "Strong competition drove down costs for the program, resulting in $1.7 billion in savings to the taxpayer,” said Secretary of the Air Force Heather Wilson. The original service cost estimate was $4.1 billion. Today's award of approximately $375 million is for the first four helicopters and includes the integration of non-developmental items. This additional equipment integrated into the aircraft will ensure the helicopters are ready to meet warfighter needs upon delivery. The total program cost for the UH-1N Replacement Program reflects the exercise of all options and provides for the acquisition and sustainment of up to 84 MH-139 helicopters, training devices and associated support equipment to replace the legacy UH-1Ns. The new helicopter will be an important tool for Airmen charged with securing and defending the nation's intercontinental ballistic missiles. The Air Force will also use the aircraft for training, test and operational support airlift. The Air Force pursued a full and open competition to deliver increased capabilities to warfighters. This replacement will provide the necessary speed, range, endurance and carrying capacity needed to meet the requirements of five Air Force major commands, officials said. "A safe, secure and effective nuclear enterprise is job one," said Air Force Chief of Staff Gen. David L. Goldfein. "It is imperative that we field a capable and effective helicopter to replace UH-1Ns providing security for our ICBMs and nuclear deterrence operations." The first operational helicopter delivery is expected in Fiscal Year 2021. https://www.af.mil/News/Article-Display/Article/1643707/air-force-awards-contract-for-new-helicopter/source/GovD/

By: David B. Larter WASHINGTON — Congress sent a message this year that it wants the Navy to build amphibious ships, and it's going to put up the money to do it. Overall the Navy's shipbuilding account got a $2.2 billion boost over the $21.9 billion it asked for, but amphibs fared especially well in the deal. The minibus spending bill that advanced out of the Senate and is headed to the House for its final vote funded $350 million for accelerated acquisition of the LPD-17 Flight II, a somewhat streamlined version of the San Antonio-class amphibious transport dock. That move comes on the heels of the Navy awarding Huntington Ingalls Industries a $165.5 million contract for purchasing long-lead time materials in August. The ship, which is destined to cost $1.64 billion for the first ship and $1.4 billion for each subsequent ship, will replace the old dock-landing ships designed to launch both helicopters and amphibious vehicles onto the beach. But the spending spree on amphibs didn't stop with LPD-17 Flight II. Congress added three ship-to-shore connector craft for a total of eight in 2019, a $182.5 million plus-up over what the Navy requested. Congress also added $350 million for the advance procurement of Landing Helicopter Assault Ship 9, and added an expeditionary fast-transport ship (a fast ferry) to the budget for a total of $225 million. The congressional largess toward amphibious shipbuilding is driven both by Congress' desire to push the Navy to a 355-ship fleet as fast as possible, and by the evolving role played by amphibious ships in the Navy's strategic thinking, said Bryan Clark, a retired submarine officer and analyst with the Center for Strategic and Budgetary Assessments. Clark, who worked on one of the Navy's recent studies to choose a composition of the future fleet, said the Navy is increasingly using the amphibs and their aircraft in combat roles and keeping the carriers in more blue water environments. “They are using the amphibs more as front-line capital ships, with the carriers being more of a strategic force that you keep maybe not as close to the enemy shoreline,” he said. Anti-access, area denial This move is being driven by China and Russia, which have made the capability of long-range anti-ship strike from shore batteries a priority in order to keep the U.S. Navy's carriers at bay. But to combat this dynamic, the Navy has increasingly looked to the Marine Corps and its amphibious force as a way to throw off the calculations of adversaries, especially in the Asia-Pacific region, said Dakota Wood, a retired Marine lieutenant colonel and now analyst with The Heritage Foundation. The thinking goes that the Marine Corps can slip into the range of Chinese missiles, land a force on a feature or island, and start fighting back with missiles and sensors of their own. This will force the Chinese to expend resources to address the Marine threat, creating opportunities for the Navy to use its hefty strike capabilities. “A Marine landing force on an island or feature has to present a problem to the enemy that is credible — anti-ship cruise missiles, short-range air defense, a sensor node contributing to the air or surface picture,” Wood said. “It has to be able to thin out the enemy's fire power, sensor grid and attention span to give the Navy the chance to get inside the envelope, close and have an impact.” Jobs Congress is also worried about attracting and keeping shipyards in business and skilled workers in the shipyards to support a growing fleet. Pumping money into shipbuilding is the best way lawmakers know to do that. “The plus-up is really across the board in shipbuilding,” said Clark, the CSBA analyst. “You look at the three littoral combat ships Congress is buying, two of which the Navy didn't ask for. They are buying as many attack subs as the industrial base can deliver, and they are pushing toward allowing the Navy to procure two carriers at once to get the economic order quantity there.” But in the case of amphibs, Congress is doing something new by spending on advance procurement. Generally the Navy has purchased amphibious ships one at a time, without multiyear contracts or a lot of advanced procurement money, Clark said. Even for a 13-ship class like the LPD-17 Flight I, the ships were purchased as the money became available. Congress adding money to advance procurement is an attempt to save funds by creating a more regular rhythm for the way the service buys its destroyers, littoral combat ships and attack submarines, Clark said. https://www.defensenews.com/digital-show-dailies/modern-day-marine/2018/09/24/with-a-big-cash-infusion-congress-is-all-in-on-the-amphibious-navy

By: Jaroslaw Adamowski WARSAW, Poland — Serbia's acting assistant defense minister has announced the ministry is negotiating with a number of Chinese drone manufacturers to acquire UAVs for the Serbian military. Nenad Miloradovic said Serbia aims to buy Chinese drones for its armed forces as well as the technology that will allow the country's defense industry to produce UAVs in the long term. "This package deal, under which we plan to purchase, but also produce reconnaissance drones for the Serbian military, should be implemented shortly," Miloradovic said, as reported by local daily Blic. The official said that Serbia is positioning itself as a military-neutral country, and its government aims to procure weapons and military gear for the country's armed forces from various suppliers. "We don't have ideological prejudices in what concerns buying weapons," Miloradovic said. In a sign of strengthened military cooperation with Russia, Serbia's government earlier this year approved the purchase of six Mil Mi-17 helicopters, complementing acquisitions of other aircraft and weapons from Moscow. In contrast, Serbia signed a deal in 2016 to buy nine H145M helicopters from Dutch-French company Airbus. The value of the planned UAV deal was not disclosed by the Serbian official. https://www.defensenews.com/unmanned/2018/09/20/serbia-looks-to-acquire-chinese-drones-and-the-technological-know-how

By: Aaron Mehta WASHINGTON — Michael Brown spent two decades running companies in Silicon Valley, eventually rising to CEO of Symantec, one of the largest software companies in the world, with annual revenues of $4 billion and more than 10,000 employees. On Sept. 24, he starts a new job as the next leader of the Pentagon's Defense Innovation Unit. While it comes with a much smaller budget, in the range of $40 million, it's a job Brown believes he's stepping into at a critical time. “My fundamental view is we are in a technology race. We didn't ask to be in this, but we're in it,” Brown said in an exclusive interview with Defense News. “I'm concerned that if we don't recognize that we're in a race and take appropriate action, then we let China move forward and we don't put our best foot forward in terms of leading in these key technology areas.” Brown spent the last two years as a White House presidential innovation fellow with the Pentagon, meaning he's not coming into the world of defense cold with the DIU job. During that period he met Raj Shah, the previous DIU leader, as well as Mike Griffin, the Pentagon's undersecretary of defense for research and engineering, who now will be Brown's boss. Brown also co-authored a Pentagon study on China's influence in the U.S. tech scene, an experience that has influenced his views as he prepares to take over DIU. “One of the things I carry with me is I understand the motivation of companies, CEOs, investors because I've been working with these folks my whole life,” he said of his qualifications. Created in 2015 to be the Pentagon's outreach effort to Silicon Valley, DIU — until recentlyknown as the Defense innovation Unit Experimental — has gone through several high-profile iterations. It opened offices in Austin, Texas, and Cambridge, Massachusetts, but also worked through two leaders. It went from reporting directly to the secretary of defense to the Pentagon's undersecretary of defense for research and engineering. The group has also faced questions about its future from skeptical members of Congress, and resistance inside the building. The hiring of Mike Madsen to handle the office's Washington operations is expected to ease those concerns, but Brown acknowledged he would be spending time in Washington every few weeks to shore up internal and external support. Defense Secretary Jim Mattis and Griffin wanted a leader for the agency with a large commercial background, Brown said, “because that's the community we need to access.” Brown wants to create “the ideal exchange where we have access to all the leading technologies from whatever companies we want to work with on the supply side — and on the demand side we have the effective relationships with the Pentagon, throughout the military, so we can be select about what are the most interesting problems to work on in national security that have the greatest impact.” The China problem Brown's comments on China put him in line with the broader Trump administration, whose officials have repeatedly pointed to China as a competitor, and the Mattis-led Pentagon, which has warned of risk from China both as a military competitor and in influencing American supply chains. DIU, to Brown, has a specific role to play in that race: getting the Pentagon the best commercially available technology, and hence freeing up funding to invest in the military-only capabilities, such as hypersonics, needed to check Chinese ambitions. More nebulous but just as important for Brown is a new mission for DIU: doing outreach into the commercial tech community to explain the Pentagon's views on China, and why contributing to the departments efforts are worthwhile. Or as Brown puts it, “making sure the companies in these innovation hubs are aware of the technology race that is going on, so that they're not only viewing China as an economic opportunity but also seeing the geopolitical consequences. Being part of that debate is going to be an important role for DIU.” Brown said some of DIU's top priorities will include human systems engineering, information technology, cyber or advanced computing, autonomy, and artificial intelligence. He is also ordering a look at the various processes DIU uses to see if areas can be sped up, and whether other transaction authorities are being used to their full potential. He said he did not expect a significant restructuring of the office, but one priority is getting a human resources leader and new general counsel to smooth the transition of future hires. Capt. Sean Heritage, who has been acting as DIU interim head, will return to being the Navy lead for the office. The former CEO acknowledged that his background and high-level ties to the tech community may open doors that would be otherwise be shut (Brown was reportedly forced out by Symantec's board in 2016 due to company numbers, making him the third CEO to be removed by the company in the space of four years). He also envisions working with academic institutions located near the three DIU hubs to encourage a debate on the issue. Part of DIU's role is explaining to companies why they should support the department's efforts. Silicon Valley has a reputation as being hostile to the military — a reputation that has only increased in recent months following an employee-led pullout by Google of the department's Project Maven, an effort to incorporate AI into analyzing drone footage. Brown, however, said those concerns are largely “overblown,” noting the office is already in discussions with well over 500 different tech firms. “We haven't found there's a reluctance on the part of companies developing the technologies we're interested in working with the Pentagon,” he said. “They are interested in how DIU can help make that process easier for them.” Brown thinks he is the man to make that happen. “Contrary to what a lot of folks read or talk about with government, my experience is if you have good ideas and have persistence, you can make that happen.” https://www.defensenews.com/pentagon/2018/09/24/former-symantec-boss-takes-over-the-defense-innovation-unit