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By THERESA HITCHENS on May 05, 2020 at 3:23 PM WASHINGTON: Northern Command head Gen. Terrence O'Shaughnessy says the key to winning tomorrow's all-domain wars is predicting an adversary's actions — as well as the impacts of US military responses — hours and even days in advance. The capability to perform such “predictive analysis” will be enabled by the US military's Joint All-Domain Command and Control (JADC2) initiative for managing high-speed battle across the air, land, sea, space and cyber domains,” he told the Mitchell Institute yesterday evening in a webinar. “We see JADC2 is absolutely core to the way we're gonna defend the homeland,” O'Shaughnessy enthused. “And the part that I think is going to be so incredibly game-changing is the ability for us to really use predictive analysis and inform our decisions going into the future.” “That's, to me, what JADC2 is going to do: it's going to inform our decision-makers, it's going to help them make decisions that, like playing chess, are thinking about two or three moves downstream,” he added. “It's going to give the decision-makers, at the speed of relevance, the ability to make really complex decisions.” NORTHCOM was a key player in the Air Force's first “On Ramp” demonstration in December of technologies being developed under its Advanced Battle Management System effort, which the service sees as a foundation for JADC2. O'Shaughnessy said he is excited that NORTHCOM will be expanding its participation in the next demonstration, now slated for late August or early September having been pushed back from its original April data due to the COVID-19 coronavirus pandemic. O'Shaughnessy said JADC2 also will be critical for providing much-needed improvements to domain awareness in the Arctic. The US military has to “put together a bigger ecosystem for sensing” rather than relying on “traditional stovepiped systems” in the High North, he explained. That ecosystem needs to fuse information from as many systems as possible — from submarines patrolling beneath the icy waters to ground-based radar to long-endurance unmanned drones to future sensors based on large constellations of Low Earth Orbit satellites — which is exactly the goal of JADC2. “We have to continue to work on our ability to see the approaches to our homeland and understand what what is there and be able to react to it,” said O'Shaughnessy, who also is the commander of NORAD. As Breaking D readers know, the US military is turning an increasingly worried eye toward the Arctic where Russia and China both have begun to covet as a future zone of economic wealth as the Earth's climate opens shipping routes and expands access to undersea oil. O'Shaughnessy said he sees three areas where more investment is required to up the US military's game in the Arctic: communications, training, and infrastructure. Communications at northern latitudes is a particular struggle due to the difficulties of laying fiber optic cable in the harsh terrain, and the paucity of satellite coverage in the region. This, he said, is why NORTHCOM is extremely interested in the potential for so-called proliferated LEO satellite constellations. — both those currently being built by commercial firms and any future military networks. As Breaking D readers are well aware, DoD's Space Development Agency is planning a multi-tiered network of satellites in LEO that includes “data transport” satellites to allow faster communications between satellites and air-, land- and sea-based receivers that Director Derek Tournear sees as integral to JADC2. DARPA also is experimenting with proliferated LEO architectures under its Blackjack program, which plans 20 satellites using various buses and payloads to test their capabilities by the end of third-quarter 2022. DARPA late last month selected Lockheed Martin to undertake Phase 1 satellite integration of satellite buses with payloads and the central Pit Boss C2 system under a $5.8 million contract. SEAKR Engineering announced on April 28 that it had been granted a sole source Phase I, Option 2 contract (under a three-phased program plan) to develop a Pit Boss demonstrator, beating out two other teams led, respectively, by BAE and Scientific Systems. “One of the things we find is after you get above about 65 degrees or so north, some of our traditional means of communications really start breaking down,” he said, “and once you get closer to 70, almost all except for our most exquisite communications capability really starts to break down. And so we see a need to relook our ability to communicate in the Arctic” — with proliferated LEO “one of the best approaches.” “If you look at some of the companies out there doing incredible things, we see that as a solution set to allow us to communicate in the Arctic in the relatively near future, and that will be critical,” he added. https://breakingdefense.com/2020/05/the-key-to-all-domain-warfare-is-predictive-analysis-gen-oshaughnessy

By: Aaron Mehta WASHINGTON — Army rotorcraft programs could net industry an average of $8 billion to 10 billion per year over the next decade — but defense companies can expect major challenges for its lower-tier suppliers, some of whom might choose not to come along for the ride. Those are the findings of a new study by the Center for Strategic and International Studies, released Wednesday. It follows a November report outlining cost concerns about the service's Future Vertical Lift (FVL) plan. The Army plans to field a future attack reconnaissance aircraft, or FARA, by 2028 and a future long-range assault aircraft, or FLRAA, by 2030. The modernization program is one of the top priorities for the Army. First, the good news for industry. The study found an annual market of $8 billion to 10 billion for Army rotorcraft programs over the next decade, with a potential dip occurring only in 2026, when the two new programs are spinning up. That's a strong figure that should keep the major defense companies happy. However, lower-tier companies may find themselves unprepared to actually manufacture FLRAA and FARA parts, given the newer production techniques the Army plans to use — things like additive manufacturing, robotics, artificial intelligence, digital twins, and data analytics. And if that happens, the service could face a supplier problem that could provide a major speed bump for its plans of having the systems ready to go at the end of the decade. Convincing those suppliers, many of whom lack cash on hand for major internal investments at the best of times, to put money down in the near term to redevelop their facilities and retrain people is going to be an “expensive issue,” said Andrew Hunter, who co-authored the study for CSIS along with Rhys McCormick. “They need a really compelling reason to invest.” “For a company that is devoted to the defense aviation market, they don't necessarily have a choice to not make the transition,” Hunter told reporters in a Tuesday call. “However, there is a dollars and cents issue, which is you have to be able to access the capital. If you can't, the primes will quickly go somewhere else.” And some companies with a broader market share in the commercial world may decide investing in modernization isn't worth the effort and simply leave the defense rotorcraft market, leaving the primes to scramble to find replacements. In that case, Hunter said, the primes could potentially look to bring that work in-house. Companies “are looking at the equation” of the commercial versus defense markets when making these decisions, said Patrick Mason, the Army's top aviation acquisition official. But he noted that the recent COVID-19 pandemic, which his hitting commercial aviation firms particularly hard, may cause some companies to consider the benefits of defense, which is historically smaller but more stable than the commercial aviation world. Mason also emphasized the importance of keeping suppliers with experience in the unique heat requirements or material aspects as part of the service's rotorcraft supply chain, saying “Those are the ones we remain focused on because those are the ones who could end up as a failure.” https://www.defensenews.com/2020/05/06/the-armys-future-vertical-lift-plan-may-have-a-supplier-problem/

Dallas, April 30, 2020 /PRNewswire/ - Lockheed Martin (NYSE: LMT) received a $6.07 billion contract from the U.S. Army for the production of Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) interceptors and associated equipment, to be delivered across FY21, FY22 and FY23 contract years. The contract calls for the production and delivery of PAC-3 MSE interceptors, launcher modification kits, associated equipment and non-recurring efforts to support the United States and global customers. "This contract demonstrates our customer's continued confidence in our ability to deliver unmatched Hit-to-Kill technology that defeats the ever-expanding global threats of today and tomorrow," said Scott Arnold, vice president, Integrated Air & Missile Defense at Lockheed Martin Missiles and Fire Control. "PAC-3 MSE is one of the most capable multi-mission interceptors, enabling our customers to defend against advanced tactical ballistic missiles, cruise missiles and aircraft." To meet customer demand and increase production capacity, Lockheed Martin is currently building an 85,000-square-foot expansion at the Camden, Arkansas, facility where PAC-3 MSE interceptors are assembled. The building is expected to be complete by fourth quarter 2021, with operations beginning in first quarter 2022. Ten nations - the United States, Qatar, Japan, Romania, Poland, the United Arab Emirates, Sweden, Korea, Bahrain and Germany - have signed agreements to procure PAC-3 MSE interceptors. For additional information, visit our website. About Lockheed Martin Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 110,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. View original content to download multimedia:http://www.prnewswire.com/news-releases/us-army-awards-6-07-billion-contract-to-lockheed-martin-for-pac-3-mse-production-associated-equipment-301050685.html SOURCE Lockheed Martin

(Reston, Va.) May 4, 2020–Leidos (NYSE:LDOS), a FORTUNE® 500 science and technology leader, today announced that it has completed the acquisition of L3Harris Technologies' (“L3Harris”) Security Detection and Automation businesses, for approximately $1 billion in cash. The transaction was previously announced on Feb. 4, 2020. The acquired businesses provide airport and critical infrastructure screening products, automated tray return systems and other industrial automation products. They will operate within the Leidos Civil Group, led by Jim Moos, Civil Group president. Combined with Leidos' existing cargo and baggage screening product lines, Leidos now goes to market with a global security detection and automation footprint of more than 24,000 systems deployed in more than 120 countries. Leidos will continue to serve global customers in the aviation, transportation, government and critical infrastructure markets. “In line with our mission of making the world safer, healthier and more efficient, this security detection and automation acquisition furthers our important work in the secure movement of people and commerce globally,” said Leidos Chairman and CEO Roger Krone. “We are excited to support critical infrastructure wherever it is needed, and to help transform the global security marketplace.” “This deal expands our scope and scale in securing ports and borders, enhancing passenger movement in airports of the future, and fortifying infrastructure for national security and public venues,” said Moos. “We are pleased to welcome more than 1,200 L3Harris employees around the world to the Leidos team, who share our deep commitment of providing our customers with a fully-integrated security technology ecosystem.” Compelling Strategic and Operational Benefits Expands Product Portfolio in High-Growth, Global Security Market: The closing of this acquisition creates a comprehensive and cohesive security detection platform by adding technologies including checkpoint CT scanners, people scanners, explosives trace detectors, checked baggage screeners, and automated tray return systems (ATRS) to Leidos' security detection portfolio. The combined solutions enhance the company's offerings in an evolving global security product market, which allows diversification beyond the federal budget and positions the company for long-term growth. Increased International Presence Diversifies Revenue: This business expands customer penetration across aviation, ports, borders, and critical infrastructure internationally and increases Leidos' international security products revenue more than six-fold. The deal brings Leidos products into 75 additional countries. Growth and Innovation Accelerated by Scale: The integration of these new businesses into a comprehensive portfolio enables Leidos to leverage its core technical strengths, in-depth biometrics capabilities, and global sales channels to rapidly develop and deliver new solutions. Technology investments across the combined portfolio will help accelerate innovation to address emerging and evolving threats and improve service efficiency for customers. Transaction Details The transaction is expected to be immediately accretive to Leidos' revenue growth, EBITDA margins, and non-GAAP diluted earnings per share upon closing. Cash consideration of approximately $1.0 billion plus related transaction costs was funded through a combination of excess cash on hand and a two-year term loan. Advisors Leidos retained Credit Suisse Securities (USA) LLC as financial advisor, and Fried, Frank, Harris, Shriver, & Jacobson LLP and DLA Piper as legal advisors in connection with the transaction. About Leidos Leidos is a Fortune 500® information technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, homeland security, civil, and health markets. The company's 37,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Va., Leidos reported annual revenues of approximately $11.09 billion for the fiscal year ended January 3, 2020. For more information, visit leidos.com. Cautionary Statement Regarding Forward-Looking Statements The forward-looking statements contained in this release involve risks and uncertainties that may affect Leidos' operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission (the “SEC”). Without limiting the foregoing, forward-looking statements often use words such as “believe,” “anticipate,” “plan,” “expect,” “estimate,” “intend,” “seek,” “project,” “target,” “goal,” “may,” “will,” “would,” “could,” “should,” “can,” “continue” and other words of similar meaning in connection with a discussion of the transaction or future operating or financial performance or events. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the expectations of Leidos will be realized. This release also contains statements about the acquisition of the security detection and automation businesses of L3Harris that are based on assumptions currently believed to be valid but involve significant risks and uncertainties, many of which are beyond Leidos' control, which could cause Leidos' actual results to differ materially from these forward-looking statements with respect to the transaction, including, anticipated tax treatment, ability to retain key personnel, the dependency of the transaction on market conditions and the impact of a change in market conditions on the value to be received in the transaction, unforeseen liabilities, future capital expenditures, uncertainty as to the expected financial condition and economic performance of the company following the closing, including future revenues, expenses, earnings, indebtedness, losses, prospects, business strategies for the management, expansion and growth of the company following the closing, Leidos' ability to integrate the businesses successfully and to achieve anticipated synergies, the risk that disruptions from the transaction will harm Leidos' business and the impact of the COVID-19 outbreak. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Leidos' consolidated financial condition, results of operations or liquidity. For a discussion identifying additional important factors that could cause actual results to vary materially from those anticipated in the forward-looking statements, see Leidos' filings with the SEC, including “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in Leidos' annual report on Form 10-K for the year ended January 3, 2020, and in its quarterly reports on Form 10-Q which are available at http://www.Leidos.com and at the SEC's web site at http://www.sec.gov. The forward-looking statements contained in this release are made only as of the date of this release and are based on the information available to Leidos as of the date of this release. Readers are cautioned not to put undue reliance on forward-looking statements. Leidos assumes no obligation to provide revisions or updates to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws. View source version on Leidos : https://www.leidos.com/insights/leidos-completes-acquisition-l3harris-technologies-security-detection-and-automation

Cincinnati, April 30, 2020 - GE Aviation's F110 engine continues to remain the engine of choice of advanced F-15 and F-16 aircraft around the world. This month, the U.S. Air Force Life Cycle Management Center (AFLCMC) awarded GE Aviation four contract actions valued at around $707 million for F110-GE-129 engine production. These contracts which fall under an existing indefinite-delivery/indefinite-quantity (IDIQ) contract, will provide F110 engines, installs, spares and modernized engine management system computers for Lockheed Martin F-16C/D Block 70 aircraft, as well as the Boeing F-15QA Advanced Eagle. The contracts involve Foreign Military Sales to Bulgaria, Slovakia, Qatar and Taiwan. “GE Aviation is honored to support the U.S. Air Force and foreign military sale customers,” said Shawn Warren, GE Aviation's vice president and general manager of large combat and mobility engines. “We say GE's F110 engine remains the engine of choice of modern F-15 and F-16 fleets around the world because we continue to support the F110 with a continuous infusion of new technology, including our Service Life Extension Program (SLEP).” GE's F110 engine powers 86 percent of F-15s delivered globally over the last 15 years and 70 percent of today's most advanced USAF F-16C/D fleet. GE Aviation also powers two-thirds of U.S. military fighters and helicopters. Over the last two months, GE Aviation has been awarded more than $1.2 billion in contracts to produce engines and hardware to support the U.S. military and international customers. Beyond the F110 deal, GE was awarded: • A $62 million contract modification to manufacture T700 engines for 40 UH-60M Black Hawk helicopters for the U.S. Army and international customers • A $215 million contract modification to produce 48 F414 engines and modules • A $138.2 million contract to provide TF34 engine supplies to the U.S. Air Force • A $72.5 million modification contract with the Navy to procure 140 generator converter units, 140 wiring harnesses and other components in support of the F/A-18E/F Super Hornet and E/A-18G Growler aircraft electrical systems • A $51.5 million contract modification for eight F414 spare engines, 11 afterburner modules and 12 low pressure turbine modules for the Navy F/A-18 • A $9.7 million contract modification to re-start T64 engine core production in support of the H-53E Engine Reliability Improvement Program for the Navy The work involved in these contracts will be executed at GE Aviation's facilities which include Lynn, MA; Evendale, OH; Madisonville, KY; Rutland, VT; Hooksett, NH; Asheville, NC; Wilmington, NC; Muskegon, MI and other U.S. supply chain locations. “These new contracts underscore the essential role we play as the leading provider of fighter and helicopter engines for our military customers,” said Al DiLibero, GE Aviation's vice president and general manager of medium combat & trainer engines. “We are honored by these opportunities, which will add to GE's current installed base of more than 27,000 military engines.” While GE Aviation continues to produce engines and components, hundreds of military aircraft around the world are in the air daily to assist in critical areas needed to combat the coronavirus pandemic. The U.S. military alone is handling a variety of coronavirus responses, including building and converting facilities into temporary care centers, distributing food, providing security and transporting critical medical supplies. According to the U.S. Department of Defense, more than 28,000 National Guard soldiers and airmen in every state and territory have been activated to support COVID-19 response efforts. Hundreds of military aircraft are in the air daily to assist in these measures. Each day, GE continues to see these aircraft performing a variety of missions—from GE T700-powered Black Hawk helicopters operating daily missions to deliver critical supplies to communities to CF6-powered C5M Super Galaxy's used to mobilize medical personnel. “The efforts of our dedicated military servicemen, servicewomen, and civilians that are responding to the COVID-19 outbreak is heroic,” DiLibero said. “We are focused on doing our part to support the Warfighter.” About GE Aviation GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet and turboprop engines, components and integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings. For more information, visit us at www.ge.com/aviation Follow GE Aviation on Twitter at http://twitter.com/GEAviation and YouTube at http://www.youtube.com/user/GEAviation . View source version on GE Aviation: https://www.geaviation.com/press-release/military-engines/ge-aviation-awarded-707-million-f110-engine-production

By: Venture capital community leaders The COVID-19 health crisis is quickly leading to an economic meltdown, throwing millions of Americans out of work and forcing strategic reevaluations across industries. The defense industry is no exception. We are praying for a swift end to the crisis, but its effects will linger, shaping the Pentagon's priorities, organizational structure, military operations, logistics, supply chains and interactions with the defense-industrial base for years to come. In the past few weeks, we have had numerous conversations with government officials about our venture and growth equity investments in the defense sector. These discussions have centered on the eligibility rules of the CARES Act's Paycheck Protection Program and the risk of foreign capital seeking entry into defense technology startups desperate for investment in these trying times. But these are secondary questions. The primary question is this: How can the Pentagon best preserve its innovation base and develop the most competitive and advanced technologies? The answer is simple: Buy commercial. New and emerging defense startups — and our men and women in uniform — don't need symbolic gestures. What they need is concerted action to bring the latest and most advanced technologies — many of which are routinely used in industry — to dangerously antiquated defense weapons systems and internal IT infrastructure. This was true before COVID-19, it is true now and it will be true when the next crisis strikes. All too often the government has responded to crises by circling wagons around incumbent firms — the large prime contractors, whose political connections afford them bailouts in the name of “ensuring ongoing competition.” This process is already underway. After announcing its hope for a $60 billion relief package for the aerospace manufacturing industry, Boeing successfully lobbied for $17 billion worth of loans for firms “critical to maintaining national security.” The CARES Act also announced provisions to streamline the Defense Department's contracting process, which sounds promising, except for the fact that these provisions apply only to contracts worth over $100 million. This discriminates against smaller, more nimble innovators and providers of cutting-edge technology. This isn't how things have always been. After complaints about large horse dealers monopolizing military contracts during the Civil War, the government allowed quartermasters to purchase horses and mules from any dealer on the open market. In World War II, Congress created the Smaller War Plants Corporation, which awarded tens of thousands of contracts to small, competitive firms. Today, through innovative use of Small Business Innovation Research money, other transactional authorities, rapid work programs and the like, the Pentagon is certainly signaling interest in emerging technologies. But let us be clear: We are not advocating continuing to invest larger dollar amounts into never-ending, short-term pilots and prototypes. The key to sustaining the innovation base through this crisis and any future crises is transitioning the best of these companies and products into real production contracts serving the day-to-day needs of the mission. Host tough, but fair competitions for new innovations, and then rapidly scale the winners. America's technological supremacy has afforded our country nearly a century of military hegemony, but it is not a law of nature. Sovereign states and peer competitors like Russia and China will quickly outpace us if we take our prowess for granted. We need new entrants into the defense industry more than ever, but without government support through crises like this one, the talent and capital simply won't be there. Why do investors say defense isn't a safe bet? As the Department of Defense readily acknowledges, its mission is fundamentally changing. Breakthroughs in technological fields like artificial intelligence, autonomous systems, robotics, resilient networks and cyberwarfare mean that future conflicts will look nothing like those we have seen before. The DoD of tomorrow needs a fresh wave of technical expertise to understand and respond to these new kinds of threats. That is not to say that legacy defense contractors are not needed; their expertise in large air and sea vehicles is currently unparalleled. But the expertise to build these new technologies resides in pockets of talent that the big and bureaucratic incumbents, who made their names with 20th century technology, lost access to decades ago. The DoD has publicly exalted the importance of innovative defense startups for years. That is partly why we are so excited to invest capital into the defense sector at this moment in history. Silicon Valley has a chance to live up to its oft-ridiculed but sincere ambition to make the world a better place by investing in American national security. However, we as venture capitalists and growth equity investors also have a duty to our limited partners who have entrusted us to invest and grow their capital. If we see the same old story of the government claiming to support small businesses but prioritizing its old incumbents, those investment dollars will disappear. Times of rapid and unprecedented change, as COVID-19 has precipitated, also provide opportunities. The DoD and Congress can reshape budget priorities to put their money where their mouths have been and support innovative defense technologies. Each dollar awarded to a successful venture capital and growth equity-backed defense startup through a competitively awarded contract attracts several more dollars in private investment, providing the DoD significantly more leverage that if that same dollar was spent on a subsidy or loan to a large legacy contractor. This leverage of private capital means that every contract a startup receives accelerates by up to 10 times their ability to build technology and hire talent to support the DoD's mission. The bottom line is this: There's no reason to let a health crisis today become a national security crisis tomorrow. The DoD has an opportunity to not only sustain but grow its innovation base, and give contracts, not lip service, to innovators. We, the undersigned, hope they do. The contributors to this commentary are: Steve Blank of Stanford University; Katherine Boyle of General Catalyst; James Cham of Bloomberg Beta; Ross Fubini of XYZ Capital; Antonio Gracias of Valor Equity Partners, who sits on the boards of Tesla and SpaceX; Joe Lonsdale of 8VC, who also co-founded Palantir; Raj Shah of Shield Capital, who is a former director of the U.S. Defense Innovation Unit; Trae Stephens of, Founders Fund; JD Vance of Narya Capital; Albert Wenger of Union Square Ventures; Josh Wolfe of Lux Capital; Hamlet Yousef of IronGate Capital; and Dan Gwak of Point72. https://www.defensenews.com/opinion/commentary/2020/05/04/the-defense-industry-needs-new-entrants-and-a-supportive-government-during-crises/

DEFENSE LOGISTICS AGENCY Point Blank Enterprises Inc., Pompano Beach, Florida, has been awarded a maximum $81,265,600 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for body armor. This was a competitive acquisition with five offers received. This is an 18-month base contract with two one-year option periods. Location of performance is Florida, with a Nov. 30, 2021, performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and Coast Guard. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1254). Arjo Inc., Addison, Illinois, has been awarded a maximum $47,500,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for medical equipment and accessories for the Defense Logistics Agency electronic catalog. This was a competitive acquisition with 115 responses received. This is a five-year contract with no option periods. Location of performance is Illinois, with a May 3, 2025, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-20-D-0038). NAVY General Dynamics Electric Boat Corp. (GDEB), Groton, Connecticut, is awarded $60,594,296 for a cost-plus-fixed-fee contract to provide U.S. Trident II Strategic Weapon System (SWS) ship alterations and United Kingdom SWS ship alterations for Strategic Systems Program shipboard integration installations. Work will be performed in Bremerton, Washington (29%); Groton, Connecticut (24%); Kings Bay, Georgia (24%); Bangor, Washington (9%); Cape Canaveral, Florida (7%); Norfolk, Virginia (3%); Washington, D.C. (2%); Faslane, Scotland (1%); and Plymouth, England (1%). Work is expected to be complete by April 2024. The maximum dollar value, including the base period and two option years, is $60,594,296. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $8,511,473; other procurement (Navy) contract funds in the amount of $8,534,755; fiscal 2020 research, development, test and evaluation (Navy) contract funds in the amount of $3,171,978; and United Kingdom funds in the amount of $2,098,018 are being obligated at time of award. Funds in the amount of $8,511,473 will expire at the end of the current fiscal year. This contract was a sole-source acquisition in accordance with 10 U.S. Code 2304(c)(1) and (4). Strategic Systems Programs, Washington, D.C., is the contracting activity (N-00030-20-C-0028). Virginia Pilot Association, Virginia Beach, Virginia, is awarded an $8,175,544 firm-fixed-price, indefinite-delivery/indefinite-quantity contract to provide support services to assist with the navigation of ships for Commander, Navy Region Mid-Atlantic Port Operations Division. All work will be performed in Norfolk, Virginia, and is expected to be complete by May 2025. This contract will include a 60-month base ordering period with an additional six-month ordering period option pursuant of Federal Acquisition Regulation 52.217-8; an option to extend services, which if exercised, will bring the total value to $9,058,663. The base ordering period is expected to be completed by May 2025; if the option is exercised, the ordering period will be completed by December 2025. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $50,000 will be obligated to fund the contract's minimum amount and funds will expire at the end of the current fiscal year. One source was solicited for this non-competitive, sole-source requirement in accordance with Federal Acquisition Regulation 6.302-1, and one offer was received. Naval Supply Systems Command Fleet Logistics Center Norfolk, Contracting Department Norfolk, Virginia, is the contracting activity. ARMY KVG LLC, Gettysburg, Pennsylvania (W564KV-20-D-2002); Crowley Government Services Inc., Jacksonville, Florida (W564KV-20-D-2004); Agility International Inc., Alexandria, Virginia (W564KV-20-D-2003); Maersk Line Ltd, Norfolk, Virginia (W564KV-20-D-2005); Aecom Management Services Inc., Germantown, Maryland (W564KV-20-D-2006); and American Roll-on Roll-off Carrier Group, Parsippany, New Jersey (W564KV-20-D-2007), will compete for each order of the $49,010,000 contract for the transportation of equipment, cargo and passengers within the European Command area of operations. Bids were solicited via the internet with 16 received. Work locations and funding will be determined with each order, with an estimated completion date of May 9, 2023. The 409th Contracting Support Brigade, Kaiserslautern, Germany, is the contracting activity. The Lighthouse for the Blind, St. Louis, Missouri (W81XWH-19-D-0008); Atlantic Diving Supply Inc.,* Virginia Beach, Virginia (W81XWH-19-D-0007); American Purchasing Services LLC,* Miramar, Florida (W81XWH-19-D-0006); and TQM LLC, St. Charles, Missouri (W81XWH-19-D-0009), will compete for each order of the $45,000,000 contract for sets, kits and outfits to supply complete medical, surgical, pharmaceutical, dental, laboratory and veterinary equipment and material sets. 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 May 4, 2024. U.S. Army Medical Research Acquisition Activity, Fort Detrick, Maryland, is the contracting activity. Raytheon Co., Dulles, Virginia, was awarded a $27,472,296 hybrid (cost-no-fee, firm-fixed-price) contract to provide technical expertise, system operators, maintenance and life-cycle support for the sustainment, operations and support management of numerous training aids, devices, simulators and simulations. Bids were solicited via the internet with three received. Work will be performed in Kuwait, with an estimated completion date of Dec. 31, 2023. Fiscal 2020 defense overseas contingency transfer funds in the amount of $5,000,000 were obligated at the time of the award. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-20-C-0031). MISSILE DEFENSE AGENCY Davidson Technologies,* Huntsville, Alabama, is being awarded a modification in the amount of $20,696,405 to previously awarded indefinite-delivery/indefinite-quantity (ID/IQ) contract HQ0147-19-D-0004. The contract value is increased from $2,437,491 to $23,133,896. Under this contract the contractor will continue to develop a cyber-secure information technology infrastructure that allows users to access data via a virtual desktop infrastructure. The work will be performed in Huntsville, Alabama. The ordering period of the ID/IQ is May 23, 2019, to May 22, 2024. A second task order award in the amount of $12,200,000 is being issued at this time. Fiscal 2020 research and development funds in the amount of $12,200,000 are being obligated on the task order award. The original award was made under Special Topic Broad Agency Announcement (BAA) number HQ0147-17-S-0002 that was posted to the Federal Business Opportunities website to solicit white papers related to advanced research technology and development in accordance with Federal Acquisition Regulation 6.102(d)(2)(i) to meet full and open competition requirements. The government received 26 white papers in response to the BAA and selected seven from which proposals were requested. This original award results from one of seven proposals received. The Missile Defense Agency, Redstone Arsenal, Alabama, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2175622/source/GovDelivery/

The Air Force leaders who sought to retire the A-10 in 2014 did not want to cut the aircraft, but they had no other choice due to the Budget Control Act of 2011. While that era has passed, the same dynamics are still at play— a service that is under-resourced, overtasked, compelled to retire aircraft to free up resources to modernize the remaining inventory of mostly geriatric aircraft. By DAVID DEPTULA In American politics people like to talk about third-rail issues, those that kill you when you touch them. For the Air Force, retiring the much-loved and much-misunderstood A-10 Warthog has been a third-rail issue. Army folks, generally not known for their knowledge of aircraft capabilities, LOVE the A-10, largely because it is something Army troops can see results from and it's really loud and looks aggressive, a combination ground pounders appreciate. Key members of Congress have loved the A-10 because it's based in their districts (the late Sen. John McCain) or because their spouse flew the airplane (former Sen. Kelly Ayotte.) OK, and a few really do believe the A-10 should be kept because it is the best close-air-support aircraft. In the 2021 budget, the Air Force is taking a new approach, trying to blend extending the life of most of the A-10 fleet while retiring some. The head of the Mitchell Institute, Dave Deptula, presents a detailed argument in favor of the new approach. Will the Air Force touch the rail or? Read on? The Editor. Some were surprised to see the Air Force again trying in the latest budget request to retire 44 A-10s from, bringing the total force of 281 Warthogs down to 237. Any discussion regarding the status of the A-10—or any other capability in the Air Force's inventory—needs to start with the fact that the Air Force is seriously underfunded. Between 1989 and 2001, the Air Force absorbed the largest cuts of all the services as a percentage of the overall defense budget. Between 2008 and 2011, the Air Force received its lowest share of the defense budget going all the way back to the Eisenhower Administration. On top of those slim budgets, the service does not even receive all that is allocated to it in its total budget. Roughly 20 percent is removed from its control as a budget pass-through to the Intelligence Community. In 2020, that equaled $39 billion—enough to buy 400 F-35As. The chronic deficiencies in Air Force funding were the motivating force behind service leaders releasing “The Air Force We Need,” a plan that calls for growing the number of operational squadrons from 312 today to the 386 required to execute the national defense strategy. While that assessment has yet to be met with funding from the administration or Congress it provides a realistic way to view risk; the difference between what the Air Force needs and what it currently possesses. Because of this disparity, the Air Force is continuously forced to trade existing force structure to pay for modern weapons. It does not matter that the Air Force fields the oldest and smallest aircraft force in its history, or that nearly every mission area is coded “high demand, low density.” The Air Force leaders who sought to retire the A-10 in 2014 did not actually want to cut the aircraft, but they had no other choice due to the Budget Control Act of 2011. While that era has passed, the same dynamics are still at play— a service that is under-resourced, overtasked, compelled to retire aircraft to free up resources to modernize the remaining inventory of mostly geriatric aircraft. With that background, it is important to understand the Air Force's plan to cover the panoply of mission requirements that it faces. Defense leaders today are anticipating a broad array of future threats ranging from non-state actors like the Islamic State and Boko Haram on the low end, North Korea and Iran in the middle, and China and Russia as peer adversaries on the top of the spectrum. The overlapping concurrency of these challenges makes for a difficult balancing act given the chronic underfunding of the Air Force and the fact that dealing with each threat demands a different set of tools. This is precisely why the Air Force wants to retain the bulk of the A-10 inventory. They are planning on doing it in a smart way to achieve two primary goals. First, to assure sufficient capacity to ensure that when combatant commanders need the aircraft the Air Force has enough aircraft so that one squadron can be continuously deployed for combat operations. Second, to assure sufficient capability, leaders are investing in re-winging all the remaining A-10 airframes, funding avionics improvements, and other critical upgrades. Taking these steps will ensure the A-10 can continue to fly and fight into the 2030s. The reason for this is simple: when it comes to effectively and efficiently dealing with certain missions in the low- to medium-threat environment, few aircraft can net better results than the A-10. These aircraft are incredibly precise, efficient to operate, can haul a tremendous load of munitions, and their ability to integrate with other aircraft as well as ground forces is legendary. However, when defense leaders consider operations at the higher end of the threat spectrum, the reality is that A-10 cannot survive. In such environments, commanders select appropriate capabilities rather than risking airmen or mission success. Close air support is a mission—not an aircraft—and it can be executed by many aircraft other than the A-10, particularly in higher threat scenarios. This is why A-10s were not employed over Syria. It would have put them at risk against sophisticated Russian air defenses and combat aircraft. Commanders prudently decided to harness F-22s, F-15Es, F/A-18s, F-16s, and others to secure desired objectives because these aircraft could better defend themselves against those threats. Such sophisticated defenses require continued investment in aircraft like the F-35 and B-21. These are the sorts of aircraft—empowered with fifth generation attributes like stealth, advanced sensors, and computing power—that will be far better equipped to handle mission demands against potential adversaries equipped with the most advanced weapons coming out of China or Russia. Preparing for the future demands adjusting the Air Force's existing aircraft inventory in response to budget realities. Dialing up investment in fifth-generation aircraft is an essential requirement, especially given that too few B-2s and F-22s were procured in the past. The types of combat scenarios that defined the post-9/11 world occurred in permissive airspace at the low end of the threat spectrum. America's interests demand a much more far reaching set of options able to operate and survive in high threat environments. That is why investments in A-10 modernization and newer designs like the F-35, B-21, and next generation air dominance aircraft are so important. However, capacity still matters. The Air Force needs to be properly resourced so it does not have to gut the very numbers that will prove essential in future engagements. No matter the theater in which a fight may erupt, the type of combat action, or the scale of the operation, the need for numbers of airframes is a constant—the same cannot be said for surface forces. It is well past time for leaders in the Department of Defense, the White House and on Capitol Hill to start properly scaling Air Force resources to align for the actual mission demand required by our National Defense Strategy. David Deptula, a member of the Breaking Defense Board of Contributors, is a retired Air Force lieutenant general with over 3,000 flying hours. He planned the Desert Storm air campaign, orchestrated air operations over Iraq and Afghanistan and is now dean of the Mitchell Institute for Aerospace Studies. https://breakingdefense.com/2020/05/a-smart-approach-to-retaining-most-of-the-a-10s

Lee Hudson The Pentagon intends to request additional stimulus funding from Congress to support the defense industrial base in the wake of the COVID-19 pandemic, Defense Secretary Mark Esper says. The funding would go to small suppliers that have been hit hard by the spread of the novel coronavirus, Esper said May 4 during a Brookings Institution event. In recent weeks, Congress has passed about $3 trillion in emergency funding bills related to COVID-19. The Senate is in session this week, but the House has postponed votes. It is unknown when the next stimulus package will wrap up. “We anticipate the likely need for additional monies ... because we see again greater demand with regard to medical supplies and equipment,” Esper said. But House Armed Services Committee Chairman Adam Smith (D-Wash.) said the Pentagon should not receive stimulus funding from the Coronavirus Aid, Relief and Economic Security Act because the public health sector needs it more. Last week, Pentagon acquisition executive Ellen Lord said the Pentagon may have wiggle room to use some of its own operations and maintenance funding to pay for COVID-19-related efforts. Lord cautioned that the Pentagon may not have the fiscal flexibility to pay for new demands on the agency to battle COVID-19. “I will say that we continue to look at gaps in funding we have for specific issues. We continue to work with [the Office of Management and Budget] on that, and we will continue to talk to Congress about what we assess as our needs to really carry out our missions,” Lord said. The Defense Department (DOD) wants to continue supporting the defense industry by issuing progress payments to help with cash flow, Esper said. “DOD is not an island. We really rely heavily on the private sector, and so many of our private sector workforce has been affected by COVID-19,” Esper said. Some defense contractor personnel are infected with the virus, while others are working in states with shutdown orders and management does not want them coming into work because of tight quarters, he said. Separately, Esper is concerned the nation's additional debt incurred due to COVID-19 may result in smaller defense budgets during a critical time when China and Russia are strategic competitors of the U.S. The U.S. must recapitalize the nuclear triad and invest in hypersonic weapons, artificial intelligence, space capabilities and directed energy, Esper said. https://aviationweek.com/defense-space/budget-policy-operations/dod-seeking-more-covid-19-stimulus-funding-esper-says