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By: Valerie Insinna WASHINGTON — As the Trump administration and Congress deliberate the Defense Department's top-line budget for fiscal 2020, safeguarding the military's weapons programs and funding technology development is taking precedence over growing the force, the Pentagon's No. 2 official said Thursday. “At the end of the day, the national defense strategy puts a priority on modernization,” Deputy Defense Secretary Patrick Shanahan told reporters Dec. 13. “The trick then becomes, when you talk about force structure, how much risk do you take given the world's environment?” Shanahan's comments come at a time of back-and-forth between President Donald Trump, Defense Department leadership and Congress about the size of the FY20 defense budget. Pentagon budget makers had been planning for a $733 billion budget request — a modest increase over the $716 billion budget for FY19 — when Trump announced in October that the Defense Department's budget would instead be cut to $700 billion. The move surprised many, as Trump had frequently touted his administration's efforts to grow the size of the military and invest in new defense technology. The announcement raised questions about what the Pentagon would have to cut in order to meet the lower number, but it appears that those concerns may have been premature. Earlier this week, Politico and other outlets reported that congressional Republicans and Defense Secretary Jim Mattis had convinced Trump to raise the top line to $750 billion. Shanahan on Thursday downplayed the reports, saying that a final top line had yet to be determined. "We're looking at numbers above $733 [billion], and as you know, we looked at numbers below $733 [billion]. I think everybody recognizes that this is a discussion that will go on in terms of what is the right number. The process we have is very robust,” he said. No matter what the top line ends up looking like, the goal will be “anchor[ing] line items to the National Defense Strategy. That's the rigor we put in place,” he added. With a top line above $733 billion, it's possible the Defense Department will be able to grow both its modernization accounts as well as funding for improving readiness and increasing force structure. But Shanahan, who spoke at a National Defense Industrial Association event on hypersonics on Thursday, tried to quell defense contractors' concerns that funding for hypersonic technologies, and science and technology development in general, could suffer under a budget that rings in at $733 billion or below. Asked by one Lockheed Martin employee whether funding for hypersonics programs would remain reliable in light of budgetary fluctuations, Shanahan said his level of confidence was high it would. “We've prioritized amortization,” he said. https://www.defensenews.com/congress/budget/2018/12/14/modernization-top-priority-in-fy20-budget-pentagons-no-2-official-says/

DEFENSE LOGISTICS AGENCY Spacelabs Healthcare Inc., Snoqualmie, Washington, has been awarded a maximum $450,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for patient monitoring systems, accessories and training. This is a five-year base contract with one five-year option period. This was a competitive acquisition with 36 responses received. Location of performance is Washington, with a Dec. 13, 2023, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2018 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D1-19-D-0008). OrthoScan, Scottsdale, Arizona, has been awarded a maximum $125,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for radiology systems, accessories and training. This is a five-year base contract with one five-year option period. This was a competitive acquisition with 50 responses received. Location of performance is Arizona, with a Dec. 13, 2023, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2018 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D1-19-D-0007). UPDATE: Moridge Manufacturing Inc., Moundridge, Kansas (SPE8EC-19-D-0031) has been added as an awardee to the multiple-award contract for commercial agricultural equipment, issued against solicitation SPE8EC-17-R-0007, announced May 18, 2017. NAVY Textron Inc., New Orleans, Louisiana, is awarded a $314,288,369 modification to previously awarded letter contract N00024-17-C-2480 for the procurement of additional long lead time material (LLTM) for the Ship to Shore Connector program, Landing Craft, Air Cushion (LCAC) 100 Class Craft 109 through 118, for the continuation of pre-fabrication activities for LCAC 109 through 112, and for the initial procurement of LLTM for LCAC 119 through 123. The SSC Program is the functional replacement for the existing fleet of vehicles, which are nearing the end of their service life. It is an Air Cushion Vehicle designed for a 30-year service life. The SSC mission is to land surface assault elements in support of Operational Maneuver from the Sea, at over-the-horizon distances, while operating from amphibious ships and mobile landing platforms. SSC provides increased performance to handle current and future missions, as well as improvements which will increase craft availability and reduce total ownership cost. Work will be performed in New Orleans, Louisiana (46 percent); Leesburg, Virginia (18 percent); Mandal, Norway (8 percent); Gloucester, United Kingdom (7 percent); Livonia, Michigan (7 percent); Cincinnati, Ohio (4 percent); Eatontown, New Jersey (2 percent); Gold Beach, Oregon (2 percent); Riverdale, Iowa (2 percent); Huntington Beach, California (2 percent); Metairie, Louisiana (2 percent), and is expected to be complete by July 2023. Fiscal 2017, 2018 and 2019 shipbuilding and conversion (Navy) funding in the combined amount of $235,716,277 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. Raytheon Missile Systems, Tucson, Arizona, is awarded a $149,435,507 cost-plus-incentive contract for the engineering, manufacturing, and development of Standard Missile-2 Block IIIC. Work will be performed in Tucson, Arizona (85 percent); Wolverhampton, England (6 percent); East Aurora, New York (6 percent); Middletown, Ohio (2 percent); and Englewood, Colorado (1 percent), and is expected to be completed by October 2022. Fiscal 2019 and 2018 research, development, testing and evaluation (Navy) funding in the amounts of $50,090,148 and $234,663 respectively will be obligated at time of award. Funding in the amount of $234,663 will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S. Code 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-5412). Raytheon Co., Missile Systems, Tucson, Arizona, is awarded a $32,636,301 firm-fixed-price modification to previously awarded contract N00024-18-C-5432 for over-the-horizon weapon systems. Work will be performed in Kongsberg, Norway (75 percent); Tucson, Arizona (15 percent); Schrobenhausen, Germany (4 percent); Raufoss, Norway (3 percent); McKinney, Texas (2 percent); and Louisville, Kentucky (1 percent), and is expected to be complete by December 2020. Fiscal 2019 weapon procurement (Navy); fiscal 2019 research, development, testing, and evaluation (Navy); and fiscal 2019 other procurement (Navy) in the amount of $32,636,301 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 Navy Yard, District of Columbia, is the contracting activity. Raytheon Missile Systems, Tucson, Arizona, is awarded a $32,162,533 cost-only contract for long lead material in support of fiscal 2019 Evolved Sea Sparrow Missile (ESSM) Block 2 low-rate initial production requirements. The ESSM program is an international cooperative effort to design, develop, test, and procure ESSM missiles. The ESSM provides enhanced ship defense. This contract combines purchases for the Navy (43 percent); and the governments of Canada, Australia, Germany, Norway, Turkey, the Netherlands, and Denmark under the NATO Sea Sparrow Consortium. Work will be performed in Raufoss, Norway (47 percent); Mississauga, Canada (32 percent); and Richmond, Australia (21 percent), and is expected to be complete by December 2022. Fiscal 2017 and 2018 other procurement (Navy); fiscal 2018 and 2019 weapons procurement (Navy); and non-expiring Other Funds funding in the amount of $21,991,327 will be obligated at time of award and funds in the amount of $216,649 will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with the authority 10 U.S. Code 2304 (c)(4). The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-5418). Raytheon Missile Systems, Tucson, Arizona, is awarded a $24,717,120 cost-only contract for long lead material in support of fiscal 2019 Evolved Sea Sparrow Missile (ESSM) Block 1 production and spares requirements. The ESSM program is an international cooperative effort to design, develop, test, and procure ESSM missiles. The ESSM provides enhanced ship defense. This contract includes foreign military sales to the kingdom of Saudi Arabia. Work will be performed in Raufoss, Norway (44 percent); Mississauga, Canada (34 percent); and Richmond, Australia (22 percent), and is expected to be complete by December 2021. Foreign military sales funding in the amount of $23,846,439 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with the authority 10 U.S. Code 2304 (c)(4). The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-5410). Austal USA, Mobile, Alabama, has been issued a fixed-price-incentive firm target modification to a previously awarded contract (N00024-17-C-2301) to exercise options for the construction of two fiscal 2019 littoral combat ships (LCS). The Navy has not completed the competition for fiscal 2019 LCS class ships, therefore, the specific contract award amount for these ships is considered source selection sensitive information (see 41 U.S. Code 2101, et seq., Federal Acquisition Regulation (FAR) 2.101 and FAR 3.104) and will not be made public at this time. Austal USA will perform and oversee all necessary design, planning, construction, and test and trials activities in support of delivery of these ships to the Navy. Work will be performed in Mobile, Alabama (50 percent); Pittsfield, Massachusetts (24 percent); Cincinnati, Ohio (5 percent); Henderson, Washington (2 percent), Kingsford, Michigan (1 percent); Bristol, Connecticut (1 percent), Slidell, Louisiana (1 percent); and various other locations of less than 1 percent each (totaling 16 percent), and is expected to be complete by September 2025. Fiscal 2019 shipbuilding and conversion (Navy) funding 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. ARMY AC FIRST LLC., Germantown, Maryland, was awarded a $129,918,292 modification (0002 37) to contract W52P1J-12-G-0048 for logistics support services, maintenance, supply, and transportation services. Work will be performed in Bagram, Afghanistan, with an estimated completion date of Dec. 21, 2019. Fiscal 2019 operations and maintenance, Army funds in the amount of $12,500,000 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. Harper Construction Co. Inc., San Diego, California, was awarded a $59,467,470 firm-fixed-price contract for construction of a reception barracks complex. Bids were solicited via the internet with two received. Work will be performed in Fort Sill, Oklahoma, with an estimated completion date of Dec. 14, 2020. Fiscal 2015 and 2016 military construction funds in the amount of $59,467,470 were obligated at the time of the award. U.S. Army Corps of Engineers, Tulsa, Oklahoma, is the contracting activity (W912BV-19-C-0003). Oshkosh Defense LLC, Oshkosh, Wisconsin, was awarded a $30,358,753 modification (P00001) to contract W56HZV-18-F-0153 for procurement of Family of Medium Tactical Vehicles. Work will be performed in Oshkosh, Wisconsin; and Liverpool, New York, with an estimated completion date of Dec. 31, 2020. Fiscal 2018 and 2019 other procurement, Army funds in the amount of $30,358,753 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. Gary Kubiak & Son Electric Inc.,* Robbinsville, New Jersey, was awarded a $12,898,760 firm-fixed-price contract for repair of the electrical distribution system (Buildings 194-194 and main base area) for Joint Base McGuire-Dix-Lakehurst. Bids were solicited via the internet with five received. Work will be performed in Trenton, New Jersey, with an estimated completion date of Dec. 13, 2020. Fiscal 2019 operations and maintenance, Army funds in the amount of $12,898,760 were obligated at the time of the award. U.S. Army Corps of Engineers, Philadelphia, Pennsylvania, is the contracting activity (W912BU-19-C-0004). Lockheed Martin Corp., Orlando, Florida, was awarded a $10,219,884 hybrid (cost-plus-fixed-fee and firm-fixed-price) Foreign Military Sales (Qatar) contract for support services for the Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor for the Apache Attack helicopter. One bid was solicited with one bid received. Work will be performed in Orlando, Florida, with an estimated completion date of March 31, 2024. Fiscal 2019 foreign military sales funds in the amount of $10,219,884 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-19-D-0006). CORRECTION: The Nov. 8 announcement that Deloitte & Touche LLP, Arlington, Virginia, was awarded an $18,056,941 firm-fixed-price contract to provide a cyberspace analytics capability was announced early, and incorrectly stated the estimated date of completion and amount of obligated funds. The contract was actually awarded Dec. 12, 2018; the estimated date of completion is Nov. 11, 2023; and fiscal 2019 research, development, test and evaluation funds in the amount of $8,736,000 were obligated at the time of the award. All other information in the announcement was correct. AIR FORCE Peraton Inc., Herndon, Virginia, has been awarded a $65,615,581 cost-type term order for Xdomain technology through research, evolution, enhancement, maintenance, and support software and report. The scope of this effort is to provide engineering, programmatic and technical expertise, to include: requirements definition/analysis, research, systems engineering, software engineering, development testing, software integration, quality control, configuration management, system integration, interoperability testing, security analysis/implementation, lab-based security assessment testing support, system installation planning, system component procurement, on-site installation/configuration, site security assessment testing support, system familiarization, and system operational support. Work will be performed in Herndon, Virginia; and Rome, New York, and is expected to be completed by Dec. 15, 2023. This award is the result of a competitive acquisition and one offer was received. Fiscal 2019 research, development, test and evaluation funds in the amount of $250,000; and fiscal 2019 operations and maintenance funds in the amount of $72,615 are being obligated at the time of award. Air Force Research Laboratory, Rome, New York, is the contracting activity (FA8750-19-F-0003). Lockheed Martin Missiles and Fire Control, Orlando, Florida, has been awarded a $10,302,132 modification (P00001) to contract FA8682-19-C-0010 for Lot Two production of three Long Range Anti-Ship Missiles. Work will be performed in Orlando, Florida, and is expected to be completed by Feb. 28, 2020. The award is the result of sole-source acquisition. Fiscal 2018 research, development, test and evaluation funds will fund the contract. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1714535/source/GovDelivery/

By: Tom Kington ROME — Italy's Leonardo has announced a major shakeup of its management structure, which will see three of its seven divisions merged and entrusted to one of the firm's top British managers, Norman Bone. Reporting to CEO Alessandro Profumo, Bone will oversee a new Electronics Division, into which its Land & Naval Defence Electronics, Airborne & Space Systems, and Defence Systems divisions will be merged. Bone was previously the head of the Airborne & Space Systems division as well as chairman and managing director of Leonardo's U.K. operation. The Defense Systems division includes Leonardo's torpedo business, formerly known as WASS, and its cannon business, formerly known as Oto Melara. In a statement, Leonardo said the merging of the divisions was designed to “achieve suitable critical mass” in its electronics-related businesses. “This evolution will result in the organizational model being aligned with that of the main players in the market, ensuring an even more integrated development,” the firm said. Additionally, the firm's Air Traffic Control and Automation Systems businesses will be moved from the firm's Security & Information Systems Division to the new Electronics Division. The remainder of the Security & Information Systems division has been renamed the Cyber Security Division, and will be taken over on Jan. 21 by Barbara Poggiali, the firm said. Leonardo's three other divisions are Helicopters, Aircraft and Aerostructures. The shakeup is the latest stage in the consolidation of Leonardo's activities, which formerly existed as separate companies including AgustaWestland and Alenia. They were first transformed into divisions of the firm in 2016 as the company changed its name to Leonardo from Finmeccanica. https://www.defensenews.com/industry/2018/12/14/italian-firm-leonardo-merges-3-divisions-names-brit-to-head-them

Canadian Coast Guard adds to its icebreaker fleet for first time in twenty five years LÉVIS, QC, Dec. 14, 2018 /CNW/ - Our Canadian waterways play a crucial role in our culture, history, and economy. Keeping these waterways safe and open for business is a priority for the Government of Canada. This is why we are ensuring that the Canadian Coast Guard is properly equipped for the important work it carries out on a daily basis in keeping Canadians and our Canadian waters safe. Today, the Minister of Public Services and Procurement and Accessibility, the Honourable Carla Qualtrough, and the Minister of Families, Children and Social Development, the Honourable Jean-Yves Duclos, on behalf of the Minister of Fisheries, Oceans and the Canadian Coast Guard, the Honourable Jonathan Wilkinson, and the Parliamentary Secretary to the Minister of Finance and Member of Parliament for Louis-Hébert, Joël Lightbound, announced that the first of the three medium icebreakers recently built by Chantier Davie for the Canadian Coast Guard will be named CCGS CaptainMolly Kool. The expertise and the talent of Chantier Davie workers were in the limelight during that event, which highlighted the first floating of a Coast Guard icebreaker in twenty-five years. The Ministers and the Parliamentary Secretary have seized the opportunity to visit the shipyard and to meet the workers, in order to reiterate the importance of Chantier Davie for the Canadian shipbuilding industry. All three medium icebreakers, recently acquired by the Coast Guard, will undergo refit and conversion work at Chantier Davie in Lévis, Québec, to ensure they comply with Canadian regulatory and Coast Guard operational standards before entering the fleet. The first ship will allow the Coast Guard to provide essential services during the upcoming winter season, while the other two undergo refit projects. The namesake of the icebreaker, Captain Myrtle 'Molly' Kool, was the first woman in North America to become a master mariner. Myrtle Kool, known by everyone as Molly, was born in 1916 in Alma, New Brunswick. In 1937, she was the first woman in North America to become a licensed ship captain, and in 1939, was awarded her coastal master's certificate. CCGS Captain Molly Kool is part of the national Coast Guard fleet which carries out icebreaking duties in Atlantic Canada, the St. Lawrence and the Great Lakes, and Arctic regions. This icebreaker is the latest Coast Guard asset deployed to help ensure the safety of Canadian waterways and those who rely on them, both for recreational and commercial purposes. Quotes "Today, we are pleased to welcome CCGS Captain Molly Kool into the Canadian Coast Guard fleet. This icebreaker will provide essential support to the shipping industry, while keeping Canadians safe along our waterways. Canadians can be proud of the men and women of our Coast Guard, and the important work they carry out from coast, to coast, to coast." The Honourable Jonathan Wilkinson, Minister of Fisheries, Oceans, and the Canadian Coast Guard "CCGS Captain Molly Kool is a welcome and much needed addition into the Canadian Coast Guard fleet. Congratulations to the skilled workers of Chantier Davie for their excellent work in bringing this ship into service for the upcoming icebreaking season. This project is yet another example of how the National Shipbuilding Strategy is supporting jobs and prosperity in communities across Canada, including here in Quebec." The Honourable Carla Qualtrough, Minister of Public Services and Procurement and Accessibility "I am proud to be here with my colleague the Minister of Public Services and Procurement and Accessibility, and my colleague the Parliamentary Secretary to the Minister of Finance and Member of Parliament for Louis-Hébert, in order to highlight the excellent work achieved by the Chantier Davie workers on CCGS Captain Molly Kool. The importance of the Chantier Davie for the Canadian shipbuilding industry and for our region's economy is undeniable. The high quality of the refit and conversion work conducted on CCGS Captain Molly Kool is another example of our workers' exceptional know-how. Together, we can consider the future with confidence.." The Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development Quick Facts CCGS Captain Molly Kool measures 93.7 metres in length, and has a beam of 18 metres. It is classified as a medium icebreaker, and can maintain a speed of 3 knots through ice up to 1 metre thick. In addition to icebreaking, the ship will support other Coast Guard programs, such as Search and Rescue and Environmental Response Icebreakers are crucial to Coast Guard services, the safety of mariners, protection of coastal waters, and efficient transport of people and goods through Canada's waterways. https://www.newswire.ca/news-releases/the-government-of-canada-reaffirms-its-commitment-to-davie-and-its-workers-702780082.html

Murray Brewster · CBC News The federal government's plan to award to a group of companies led by Lockheed Martin Canada the contract to design and support the construction of the navy's new frigates has been — nominally — put back on track. The Canadian International Trade Tribunal (CITT) has rescinded an order, issued late last month, that prevented the signing of the deal. The decision to reverse course was made Monday after Public Services and Procurement Canada "certified in writing that the ... procurement is urgent and that a delay in awarding the contract would be contrary to the public interest," according to a copy of the ruling. The decision opens the way for the government to finalize the contract, which is still under negotiation. The Lockheed Martin Canada-led team was selected in October as the preferred bidder after a nearly two-year-long competition to select an off-the-shelf design for the 15 new warships that eventually will replace the navy's frigates. One of the competitors, Alion, asked the CITT to investigate the procurement deal, saying the preferred warship design will need substantial changes and doesn't meet the navy's requirements as spelled out in the government tender. The company also has asked the Federal Court in a separate filing for a judicial review of the long-awaited decision. That case is still pending. The federal government hopes to be able to sign a contract this winter. The order to postpone implementing a deal could have had a devastating impact on the $60 billion program, which already has suffered a series of delays. One of the biggest concerns involved an anticipated production slowdown at the go-to shipyard for warship construction, Irving Shipbuilding in Halifax. The federal government is expecting gap of, possibly, 18 months between the completion of the Arctic Offshore Patrol Ships and the beginning of construction on the new frigates, known as Canadian Surface Combatants. The Liberal government has attempted to mitigate the slowdown by confirming the construction of six Arctic patrol ships. Further delays to the new frigates would have made that worse. https://www.cbc.ca/news/politics/trade-tribunal-puts-frigate-program-back-on-track-1.4941507

Today's critical Department of Defense (DOD) systems and platforms rely on advanced electronics to address national security objectives. To help tackle obstacles facing a half-century of electronics advancement, DARPA launched the Electronics Resurgence Initiative (ERI) – a five-year, upwards of $1.5 billion investment in the future of domestic electronic systems. In November, DARPA expanded ERI with the announcement of ERI Phase II, which seeks to further enmesh the technology needs and capabilities of the defense enterprise with the commercial and manufacturing realities of the electronics industry. One key focus of ERI Phase II is on developing connections between the various ERI programs and their potential defense applications. On Wednesday, December 19, DARPA therefore plans to host a Proposers Day to convene leaders within the defense industry base (DIB) to discuss opportunities to further develop and demonstrate ERI's technological advances for DOD needs. During the event, DARPA program managers will share their ideas for potential ERI defense applications, which include but are not limited to autonomy and artificial intelligence, large-scale emulation, cybersecurity, space applications, cognitive electronic warfare, and intelligence, surveillance, and reconnaissance (ISR). To foster further dialogue and collaboration, attendees will have a chance to provide input on how best to support the transition of electronics innovations into national defense hardware. The Proposers Day will also support the development of a potential broad agency announcement (BAA) focused on defense transitions. Tentatively titled “Electronics Resurgence Initiative: Defense Applications (ERI:DA)”, the BAA would solicit innovative proposals to develop, demonstrate, and apply emerging ERI electronic technologies to deliver significant impact on DOD capabilities. “The success of ERI relies on cooperation with the commercial sector to address shared problems. However, as a DARPA effort, ERI must also demonstrate that its research findings bolster our nation's defenses and help create strategic surprise,” said Dr. William Chappell, director of DARPA's Microsystems Technology Office (MTO). “Through the ERI:DA Proposers Day and potential BAA, DARPA seeks to procure the expertise and transition support of industry and the defense community to help accelerate the delivery of ERI-derived innovations for national security needs.” The Electronic Resurgence Initiative: Defense Applications Proposers Day will take place on Wednesday, December 19, 2018 from 9:00am to 4:00pm EST, at the Hilton Arlington, 950 N Stafford St, Arlington, Virginia. Advanced registration is required. For those unable to attend in person, registered attendees may access the event via a livestream link available on the registration page. For more information, please visit: https://www.fbo.gov/index?s=opportunity&mode=form&id=aa83296cfdd337b4ca5dc8bd4929ddef&tab=core&_cview=0. https://www.darpa.mil/news-events/2018-12-10

By: Sebastian Sprenger BERLIN — As the European Union positions itself to become a defense force in its own right, some in Washington have wondered if such moves would weaken NATO as the dominant trans-Atlantic security pact. Alliance leaders, including Camille Grand, who serves as NATO's assistant secretary general for defense investment, have defended EU efforts, arguing something good will come out of it if both organizations manage to cooperate. Grand sat down with Defense News Europe Editor Sebastian Sprenger during the NATO-Industry Forum in Berlin in November to discuss the state of play between the EU and NATO, defense spending by allies, and new technologies on the horizon. NATO Secretary General Jens Stoltenberg has said the alliance can benefit from the European Union's newfound interest in all things defense. How so? It can be fruitful for both organizations as long as we work well together. Of course it is good news to see the European Union as a more active player in the field of defense, provided that we operate in an environment where we avoid competing guidance to the member states and the allies, especially those who are members of both organizations, and provided that the EU effort strengthens trans-Atlantic security by enabling the European allies to acquire capabilities earlier or faster or in a more efficient way. Outlook 2019: World leaders and analysts speak on the state of global security and the defense industry We have a number of areas of cooperation between the EU and NATO, including in the field of capability development. Could things be better? Yes, probably, for example in terms of interaction between both organizations and fostering transparency, access to relevant documents, and so forth. Ultimately, I think the issue is whether the European effort can be a good contribution to a broader burden-sharing effort. But I think we also have to keep in mind that the effort in the field of defense remains primarily with nations. There is still a sizable trans-Atlantic imbalance as it pertains to the size of the defense-industrial base. Is that detrimental in the long run? The situation is relatively well-known. The defense market in North America, and especially in the United States, is larger than in Europe. There is an imbalance in defense spending; that's the whole point about the defense investment pledge, to partially correct that and having European members invest more in defense. Beyond that, the consolidation of defense industries took place in the United States earlier. In Europe it is still a process that is underway. There are still many companies competing for all sorts of markets. We have a fragmented demand and a fragmented supply, if you will. The issue is not to end up with a single company in Europe or in the U.S.; I think competition is healthy. The issue is: Can we tackle the issue of fragmentation in a European market? As seen from NATO, we don't really do industrial policy, per se. That's really a European Commission perspective. If it enables Europeans to be more efficient in delivering the capabilities we all need in the alliance, that can be good news. What do you expect to come out of industry consolidation in Europe? First of all, I think it has to be a business-driven process, primarily. It's not for organizations such as the EU or NATO to decide. I think what is true is that we see repeatedly cases of where there are a very large number of types of equipment in the same category available. There are a number of medium and small players in Europe that are part of the defense equation, and the defense industry is something where states look carefully at preserving some national capacity. The issue is: Should that organization evolve over time into a slightly more consolidated market? For me, the key criteria is to promote opportunities for multinational cooperations, which is something that we do both at NATO and the EU. It's very important that allies who are EU member states, when they are in a position to do so, decide to go for multinational solutions — with or without a single industrial champion. The European NATO members have pledge to spend more on defense. How does that manifest itself from where you sit? First of all, they are indeed spending more on defense. The increase in defense spending for this year is expected to be more than 5 percent for Europe and Canada. It's a complete overturn from the previous 25 years. We are now in the fourth year in a row of increasing defense spending. This is starting to make a real difference. In the last couple of years, Europe and Canada have spent €36 billion (U.S. $27 billion) more on defense than they had done previously. This starts being real money. It enables us to do three things: First of all, to fill some of the very serious gaps that we have — whether in ammunition or spare parts, for example. Secondly, to reinvest in building up capabilities for identified shortfalls, for example air-to-air refueling, anti-submarine warfare, all sorts of domains. Thirdly, to invest in defense for innovation. For example, take a deeper look at disruptive technologies, 21st century technologies. From where I sit, I can see two things. First of all, the NATO defense-planning targets have been apportioned by all allies. It's the first time in history that all allies have agreed to deliver what they are being asked. Secondly, all allies have agreed to keep increasing their defense spending. We might see nuances in terms of when they intend to reach 2 percent of GDP, which has partly to do with the politics in each country. But I think the political commitment is very strong and was strengthened by the Brussels summit in many ways. There is more money coming, and that creates more opportunities not only for new capabilities but also more cooperation. I think altogether, we have a dynamic that is very positive. Ultimately it makes a difference. People were always pointing at the fact that the Russian Federation had tripled its defense budget over the previous decade. Without trying to match that in any shape or form into an arms race, we also have seen now that reinvesting massively in defense, as the Russian Federation has done, has given Moscow more ability to act in the Middle East, to modernize its conventional and nuclear forces, and so on and so forth. The notion that investing in defense doesn't make a difference is wrong. What are the top three of four areas that need more investment for NATO? One that we are focusing on is the joint intelligence, surveillance and reconnaissance domain. This is something where modern warfare requires us to have an edge. Then also I would emphasize mobility, both tactical and strategic. All of our missions require the alliance to be very mobile and be able to forward-deploy quite quickly. I would also cite integrated air and missile defense as a domain of focus. And lastly, the maritime domain, especially anti-submarine warfare. But those are only examples. We are in the process of designing NATO for the 21st century, which needs to be more agile and regain a degree of robustness that we didn't necessarily anticipate 10 years ago when we were working on the assumption that the primary objective of NATO would be to have light, deployable forces to go out of area. I could have mentioned cyber, of course, as a priority. I didn't mention it because while it is obviously a major, major domain for building our capabilities on, it is probably not as cash-intensive as others. The Germans seems to be perpetually moving toward 2 percent of GDP on defense, as opposed to saying when they will reach it. Is that enough? Is the GDP-percentage metric suitable for defense contributions? First of all, Germany has turned a corner on defense spending. I would note that Germany has a commitment to move to 1.5 percent, which is significant. Is this enough? Probably not. And Germany should meet its political commitment like other allies and aim towards moving as quickly as possible to the 2 percent objective. Having said this, 2 percent is a figure that is quite reasonable. The Cold War figure for Germany was more in the 3 percent realm. The notion that 2 percent would be a massive and disruptive number doesn't seem to me quite convincing. The second argument that I sometimes hear in the wealthy European countries is that 2 percent when you're rich is much more difficult to achieve. I could exactly reverse that argument, saying 2 percent when you're poor is much more difficult to achieve because then you're competing with much more immediate, existential needs in terms of infrastructure, education and so on. From that perspective, the good news with the 2 percent concept is that the burden is the same for everyone. Of course, with Germany being the largest economy in Europe, a lot of effort tends to be indeed with Germany. Germany already has demonstrated a willingness to move significantly in this direction, and there are high expectations that it will continue down that route and meet the target. I honestly think it's both doable and manageable. But then, of course, that doesn't happen overnight. Are NATO and the EU on the same page when it comes to modernizing the members' combat aircraft fleets, especially in Europe? I wouldn't say there is a NATO-EU competition or disagreement over that because, first of all, NATO doesn't take sides in terms of choosing equipment. NATO identified the need to modernize and keep an effective air force. And then each ally can decided which way they want to go. Some of them, quite a number now, have decided to go for the F-35 solution. On the other hand, other allies have either recently acquired planes that are quite modern — whether it's the Eurofighter or the Rafale — or are projecting to build together — as the French and the Germans [are] — the next generation of aircraft. Britain is also contemplating its own. From a NATO perspective, I think it's fair to say that we recognize every ally's right to pursue what they think is the best approach to address a capability challenge. The European Union is pursuing a slightly different perspective because the EU does have a dimension in terms of industrial policy and research policy where they can see benefits in supporting technological development in Europe. The United States, Russia and China are spending significant amounts of money on artificial intelligence research and development. Where does NATO as a whole stand on investments in this area? We have to look very seriously, as NATO allies, at the latest generation of disruptive technologies. And artificial intelligence is one of them. There is a major challenge coming from other major powers, starting with China. The United States is already well into it, Europe is starting to do that. I would nevertheless put AI in the broader context of new and disruptive technologies because I think it's one of them. And AI can also probably bring a lot to our intelligence efforts. But I would put it in the broader context of all sorts of technology revolutions underway. And maybe sometimes we over-focus on AI only, as if it was the single game changer. Nobody has fully assessed how much it's going to change the way we do military operations. Is AI going to be a tool to assist in decisions, or is AI going to allow for more autonomous systems to operate? On this, we've been working very, very hard, including with Allied Command Transformation. https://www.defensenews.com/outlook/2018/12/10/nato-defense-investment-official-talks-european-security-and-artificial-intelligence

Teams will receive contracts worth up to £5 million to push ahead with plans to build five new Type 31e warships. Three shipbuilding teams have been awarded multi-million-pound contracts to push ahead with plans to build five new Type 31e warships in the UK for the Royal Navy, Defence Minister Stuart Andrew has announced today in Portsmouth. The Minister revealed that teams led by BAE Systems, Babcock and Atlas Elektronik UK have been shortlisted for the competition to build the five frigates for £1.25 billion. Each group has today been awarded a contract worth up to £5 million to fund the next stage of their plans, with the preferred bidder for the design and manufacture of the ships due to announced by the end of next year. The MOD want the first ship delivered in 2023. Speaking at Her Majesty's Naval Base in Portsmouth, Defence Minister Stuart Andrew said: This is the first frigate competition the UK has run in a generation, and today we are funding three shipbuilding teams with extremely exciting concepts to continue developing their plans. Next year we will announce the winning bidder, and one of these designs will go on to bolster our future fleet with five new ships, creating UK jobs and ensuring our Royal Navy maintains a truly global presence in an increasingly uncertain world. The awarding of the contracts is a key milestone in the National Shipbuilding Strategy, which was launched in September 2017. The Strategy met the challenges set by an independent report written by Sir John Parker, a figure with a wealth of leadership and boardroom experience in shipbuilding, and was underpinned by the commitment to build the new Type 31e ships. The bold Type 31e programme will move through procurement at an unprecedented pace: the vessel will commence production within 3 years of the launch of the programme, far quicker than similar programmes of this type. The ships will make up the next generation of the Royal Navy fleet, along with eight Type 26 warships which will start being delivered from the mid-2020s. The names of all eight Type 26 frigates have now been announced, and the Defence Secretary Gavin Williamson has also outlined that they will be homed in Devonport. The decision on where the Type 31e frigates will be based is still to be made. The Minister made the announcement on-board HMS Diamond, which returned to Portsmouth last month having been in the Mediterranean. https://www.gov.uk/government/news/three-shipbuilding-teams-shortlisted-to-build-new-warships-in-uk

NAVY The Boeing Co., St. Louis, Missouri, is awarded a $92,361,661 not-to-exceed firm-fixed-price, cost-plus-fixed-fee contract for Phase 1 integrated logistics support for 22 F/A-18E and 6 F/A-18F Super Hornet aircraft in support of the government of Kuwait under the Foreign Military Sales program. Work will be performed in St. Louis, Missouri (85 percent); Fort Walton Beach, Florida (8 percent); New Orleans, Louisiana (5.5 percent); China Lake, California (.5 percent); Patuxent River, Maryland (.5 percent); and Gulf Port, Mississippi (.5 percent), and is expected to be completed in December 2020. Foreign Military Sales funds in the amount of $38,792,947 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to 10 U.S. Code. 2304(c)(1). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-19-C-0033). CRL Technologies Inc., Alexandria, Virginia, is awarded an $84,327,079 cost-plus-fixed-fee indefinite-delivery/indefinite-quantity contract for lead systems integrator contractor support services to perform engineering, technical and project management for a wide variety of new and existing programs and platforms in support of the Naval Air Warfare Center Aircraft Division's AIRWorks organization. Work will be performed in Lexington Park, Maryland, and is expected to be completed in December 2023. No funds will be obligated at time of award; funds will be obligated on individual orders as they are issued. This contract was competitively procured via an electronic request for proposals; five offers were received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-19-D-0026). Envisioneering Inc.,* Alexandria, Virginia (N00173-19-D-2002); R&M Technology Solutions LLC,* Fredericksburg, Virginia (N00173-19-D-2003); Technology Service Corp.,* Arlington, Virginia (N00173-19-D-2005); Remcom Inc.,* State College, Pennsylvania (N00173-19-D-2004); and Cutlass Systems Engineering LLC,* Laurel, Maryland (N00173-19-D-2001), are awarded indefinite-delivery/indefinite-quantity, multiple award contracts for Modeling, Analysis, Research, and Simulation (MARS). The cumulative face value on this multiple award contract is a combined $48,400,000. This action does not include options. Work will be performed at the Naval Research Laboratory, Washington, District of Columbia (90 percent); and depending on each task order, one of the following contractor's facility - Alexandria, Virginia; Fredericksburg, Virginia; Arlington, Virginia; State College, Pennsylvania; Laurel, Maryland (10 percent). This contract has a five-year ordering period and is expected to be completed Dec. 11, 2023. No funds will be obligated at the time of award. Funds will be obligated as task orders are issued. This contract is one of five contracts being competitively procured under a request for proposal #N00173-16-R-JH03 for which six proposals were received. The Naval Research Laboratory, Washington, District of Columbia, is the contracting activity. General Dynamics Mission Systems, Pittsfield, Massachusetts, is awarded $35,034,283 for modification P00001 to a previously awarded cost-plus-incentive-fee, cost-plus-fixed-fee contract (N00030-19-C-0003) for research and development, and sustainment efforts for the U.S. SSBN Fire Control Sub-system (FCS), the U.K FCS and the U.S. SSGN Attack Weapon Control System, including training and support equipment and U.S./UK Shipboard data system. Work will be performed in Pittsfield, Massachusetts (98 percent); Kings Bay, Georgia (1 percent); and Dahlgren, Virginia (1 percent), with an expected completion date of September 2019. Fiscal 2019 other procurement (Navy) funds in the amount of $23,665,513; fiscal 2019 operations and maintenance (Navy) funds in the amount of $5,666,207; fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $2,857,813, and U.K. funds in the amount of $2,844,750 are being obligated on this award. Funds in the amount of $5,666,207 will expire at the end of the current fiscal year. Strategic Systems Programs, Washington, District of Columbia, is the contracting activity. Jacobs Government Services Co., Fort Worth, Texas, is awarded a $25,000,000 firm-fixed-price modification to increase the maximum dollar value of a previously awarded indefinite-delivery/indefinite-quantity contract (N62742-17-D-0003) for Architect-Engineering (A-E) services for design, engineering, specification writing, cost estimating, and related services at various locations under the cognizance of Naval Facilities Engineering Command (NAVFAC) Pacific. The work to be performed provides for services that include, but are not limited to, design and engineering services for the preparation of plans; specifications utilizing NAVFAC SpecsIntact program: cost estimates utilizing the micro-computer aided cost estimating system; second generation cost estimating system: and other services such as design and engineering services for functional analysis and concept development, request for proposal (RFP) documentation for design-build projects, RFP documentation, and plans and specifications for design-bid-build projects. After award of this modification, the total cumulative contract value will be $55,000,000. Work will be performed predominantly in Tinian (54 percent); Guam (25 percent); Hawaii (19 percent); and Diego Garcia (1 percent); and other areas within the Naval Facilities Engineering Command (NAVFAC) Pacific area of responsibility (1 percent), and is expected to be completed by August 2022. No funds will be obligated at time of award; funds will be obligated on individual task orders as they are issued. Task orders will be primarily funded by customer reimbursable funds. The Naval Facilities Engineering Command, Pacific, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity. General Electric Aviation, Lynn, Massachusetts, is awarded $11,626,714 for cost-plus-fixed-fee delivery order N0042119F0231 against a previously issued basic ordering agreement (N0042119G0001). This order provides for engineering and engine system improvement in support of the F414 engine component improvement program. Work will be performed in Lynn, Massachusetts, and is expected to be completed in December 2019. Fiscal 2019 research, development, test and evaluation; and fiscal 2019 aircraft procurement (Navy) funds in the amount of $10,817,305 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. EDO LLC, Amityville, New York, is awarded $8,661,189 for modification P00010 to a previously awarded cost-plus-fixed-fee, firm-fixed-price, cost reimbursable contract (N00019-17-C-0029). This modification provides for the procurement of 77 BRU-55A/A aircraft bomb ejector racks for the F/A-18A/B/C/D/E/F aircraft. Work will be performed in Amityville, New York, and is expected to be completed in June 2021. Fiscal 2019 aircraft procurement (Navy) funds in the amount of $8,661,189 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity. ARMY DRS Sustainment Systems Inc., St. Louis, Missouri, was awarded a $48,741,559 cost-plus-fixed-fee contract for technical support services. One bid was solicited with one bid received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 12, 2023. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-19-D-0006). Lockheed Martin Corp., Orlando, Florida, was awarded a $40,372,494 cost-plus-fixed-fee contract for analysis, design, development, integration, test, help desk, product improvements, fielding, software development, and exercise support. One bid was solicited with one bid received. Work will be performed in Orlando, Florida, with an estimated completion date of Dec. 12, 2020. Fiscal 2018 and 2019 research, development, test and evaluation; operations and maintenance Army; and other procurement, Army funds in the combined amount of $31,199,618 were obligated at the time of the award. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-19-C-0012). General Atomics Aeronautical, Poway, California, was awarded a $40,000,000 modification (P00029) to contract W58RGZ-17-C-0035 for services on the Gray Eagle unmanned aircraft system. Work will be performed in Poway, California, with an estimated completion date of June 15, 2019. Fiscal 2019 operations and maintenance Army funds in the amount of $25,000,000 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. The RAND Corp., Santa Monica, California, was awarded a $21,898,593 cost-plus-fixed-fee contract for research and analytic projects. One bid was solicited with one bid received. Work will be performed in Santa Monica, California, with an estimated completion date of Sept. 30, 2020. Fiscal 2019 research, development, test and evaluation funds in the amount of $18,974,861 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W91CRB-19-F-0038). AIR FORCE The Boeing Co., Fort Walton Beach, Florida, has been awarded an $11,746,605, cost-plus-fixed-fee modification (P00014) to exercise Option Three of contract FA8509-16-C-0001 for the integrated sustainment support of the AC‐130U gunships. This modification provides for the continuation of services for the development, modification, sustainment, and maintenance of the AC‐130U gunship. Work will be performed at Fort Walton Beach, Florida, and deployed locations in Afghanistan and Kuwait, and is expected to be completed by Dec. 31, 2019 for the negotiated option. This award is the result of a sole-source acquisition and is incrementally funded. Fiscal 2019 operations and maintenance funds in the amount of $6,000,000 are being obligated at the time of award. Total cumulative face value of the contract modification is $11,746,605. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity. DEFENSE FINANCE AND ACCOUNTING SERVICES Kearney & Company PC, Alexandria, Virginia, is being awarded a labor-hour contract option with a maximum value of $8,799,484 for audit services of the Marine Corps General Fund financial statements. Work will be performed in Alexandria, Virginia, with an expected completion date of Dec 31, 2019. This contract is the result of a competitive acquisition for which four quotes were received. The contract had a 15-month base period plus three individual one-year option periods, with a maximum value of $38,372,103. This award brings the total cumulative value of the contract to $29,328,747. Fiscal 2019 operations and maintenance, Navy funds in the amount of $8,799,484 are being obligated at the time of this option award. The Defense Finance and Accounting Service, Contract Services Directorate, Columbus, Ohio, is the contracting activity (HQ0423-16-F-0114). DEFENSE LOGISTICS AGENCY UPDATE: Kipper Tool Co., Gainesville, Georgia (SPE8EC-19-D-0035), has been added as an awardee to the multiple-award contract for commercial construction equipment, issued against solicitation SPE8EC-17-R-0005 announced April 5, 2017. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1713264/