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David Pugliese, Ottawa Citizen Officials are concerned the Irving yard in Halifax won't be able to handle all the work as it will also be building the new Canadian Surface Combatant warships The federal government is looking at splitting up maintenance work on the Canadian navy's frigates between an east coast shipyard and one in Quebec, but is facing objections from Halifax workers and Irving Shipbuilding who warn the change will mean lost jobs in Nova Scotia. There are seven frigates that will need maintenance on the east coast over a five-year period. But military and Department of National Defence officials are concerned the Irving yard in Halifax won't be able to handle all the work as it will also be in the midst of building the new fleet of Canadian Surface Combatant warships. Each of the aging Halifax-class frigates will require about a year of maintenance work, and in 2020 the navy expects maintenance will be needed on two frigates at the same time. Irving won the original maintenance contract in 2011 but that deal is nearly expired.In order to keep the navy at sea, federal procurement officials are proposing splitting up the work between Irving and its rival, Davie Shipbuilding in Levis, Que. Pat Finn, assistant deputy minister of materiel at DND, said that while no final decision has been made, discussions are taking place about splitting up the work. “We have to do this maintenance,” he told Postmedia. “We've got a fair bit to do. We have to keep the navy operational.” Finn said the government's shipbuilding strategy is producing new vessels for both the navy and coast guard, all of which will have to be maintained in the future — a large task. “If we don't have two maintenance and repair facilities for the navy and the coast guard we're going to have a strategic problem,” he said. Union officials at the Halifax shipyard and, defence-industry sources say, Irving itself have been lobbying the Liberal government to stop the plan to send some work to Davie. Irving did not offer comment for this story, but Lana Payne, the Atlantic Regional Director for Unifor, the union representing around 900 employees at the Irving yard, said her organization is worried that as many as 300 staff could face layoffs if some of the work is transferred to Davie. “The Halifax-class has been historically (maintained) at the Halifax yard and the loss of that work will create a major problem for our membership,” she said. “Our understanding is that this is work they can easily do.” Unifor has brought its concerns to Nova Scotia Liberal MPs and other members of the Liberal government. The government will spend several hundred million dollars per frigate for each maintenance period. To date, Irving Shipbuilding Inc. has received more than $3.4-billion in contracts under the government's shipbuilding strategy. That includes contracts for the Arctic and Offshore Patrol Ships and initial work on the surface combatant program. That also includes more than $511 million for repair, refit and maintenance contracts, according to federal government figures. The surface combatant program will result in an estimated $30 billion in build contracts for Irving, with work continuing into the 2040s. Sources within the federal government told Postmedia they do not see widespread layoffs arising from any decision to split the work between the yards. The government is also examining a plan to fast-track some aspects of the surface combatant program so the Irving yard is working at high capacity. Irving raised similar concerns in August after Davie received a contract to refit and upgrade three medium-size icebreakers purchased by the federal government. At the time, Irving noted that it and Seaspan Shipyards in Vancouver had been selected to build Canada's future fleets. “We call upon the Federal Government to confirm to Irving Shipbuilding, our shipbuilders and their families, the Province of Nova Scotia, and all Atlantic Canadians that the National Shipbuilding Strategy remains intact and, therefore, construction of the ships for Canada's Navy and Coast Guard will be done exclusively by Irving Shipbuilding and Vancouver Shipyards,” it pointed out in its statement. Treasury Board President Scott Brison, a Nova Scotia MP, said at the time that Irving's role in the shipbuilding strategy is secure but it has always been the case that other shipyards can compete for maintenance and refit work. • Email: dpugliese@postmedia.com https://nationalpost.com/news/canada/plan-to-split-warship-maintenance-between-quebec-and-nova-scotia-shipyards-prompts-warnings-of-job-losses

AIR FORCE Lockheed Martin Corp., Orlando, Florida, has been awarded a $390,792,959 firm-fixed-price, fixed-price-incentive-fee contract for Joint Air-to-Surface Standoff Missile (JASSM) lot 16 production for 360 JASSM-extended range, three foreign military sales (FMS) separation text vehicles, one FMS flight test vehicle-live fire and tooling and test equipment. Work will be performed in Orlando, Florida, and is expected to be completed by Oct. 31, 2021. This award is the result of a sole-source acquisition. This award uses fiscal 2018 missile procurement funds and FMS funds. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity (FA8682-19-C-0009). Applied Defense Solutions Inc., Columbia, Maryland, has been awarded a $7,526,650 fixed-price and cost-reimbursement modification (P00015) to contract FA255017C8002 for non-governmental space situational awareness services. This modification provides for the exercise of an option for an additional quantity of 12 months of services under the basic contract. Work will be performed at Schriever Air Force Base, Colorado, and is expected to be completed by Oct. 18, 2019. No funds are being obligated at the time of award. Total cumulative face value of the contract is $26,458,756. The 50th Contracting Squadron, Schriever Air Force Base, Colorado, is the contracting activity. (Awarded Oct. 4, 2018). CORRECTION: The contract announced on Oct. 4, 2018, to General Atomics Aeronautical Systems Inc., Poway, California, (FA8620-18-F-2365) for $19,446,593 has not awarded. ARMY General Dynamics Land Systems, Sterling Heights, Michigan, was awarded a $366,852,050 modification (0002 04) to contract W56HZV-17-D-B020 for upgrade of Stryker flat-bottom vehicles to the Double V-Hull Engineering Change Proposal 1 configuration. Work will be performed in Sterling Heights, Michigan, with an estimated completion date of April 30, 2021. Fiscal 2018 and 2019 procurement of weapons and tracked vehicle funds in the amount of $366,852,050 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. The Boeing Co., Mesa, Arizona, was awarded a $242,109,170 modification (P00021) to foreign military sales (United Arab Emirates) contract W58RGZ-16-C-0023 for the remanufacture of eight, and procurement of nine new-build Apache AH-64E aircraft. Work will be performed in Mesa, Arizona, with an estimated completion date of Feb. 28, 2023. Fiscal 2010 foreign military sales funds in the amount of $242,109,170 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Federal Contracting Inc., doing business as Bryan Construction, Colorado Springs, Colorado, was awarded a $52,812,678 firm-fixed-price contract for design and construction of a squadron operations facility and associated operational training facilities at Cannon Air Force Base, New Mexico. Bids were solicited via the internet with 15 received. Work will be performed in Cannon Air Force Base, New Mexico, with an estimated completion date of April 1, 2021. Fiscal 2015 and 2016 military construction funds in the amount of $52,812,678 were obligated at the time of the award. U.S. Army Corps of Engineers, Albuquerque, New Mexico, is the contracting activity (W912PP-19-C-0001). General Dynamics Land Systems, Sterling Heights, Michigan, was awarded a $24,957,920 modification (0001 19) to contract W56HZV-17-D-B020 for upgrade of Stryker flat-bottom vehicles to the Double V-Hull Engineering Change Proposal 1 configuration. Work will be performed in Sterling Heights, Michigan, with an estimated completion date of April 30, 2021. Fiscal 2018 and 2019 procurement of weapons and tracked vehicle funds in the amount of $24,957,920 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. M.R. Pittman Group LLC,* Saint Rose, Louisiana, was awarded a $17,255,645 firm-fixed-price contract for interim closure structure demolition. Bids were solicited via the internet with three received. Work will be performed in New Orleans, Louisiana, with an estimated completion date of May 8, 2020. Fiscal 2014 other procurement (Army) funds in the amount of $17,255,645 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-19-C-0001). Short-Elliott-Hendrickson Inc., Lacrosse, Wisconsin, was awarded a $19,500,000 firm-fixed-price contract for architect and engineering services for the Fort McCoy, Wisconsin, Department of Public Works. Bids were solicited via the internet with nine received. Work locations and funding will be determined with each order, with an estimated completion date of Oct. 5, 2023. U.S. Army Mission and Installation Contracting Command, Fort McCoy, Wisconsin, is the contracting activity (W911SA-19-D-2001). Keysight Technologies, Englewood, Colorado, was awarded an $8,977,287 firm-fixed-price contract for Oscilloscopes 307/U. Two bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of Sept. 28, 2023. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-18-D-0081). NAVY Donjon Marine Co. Inc., Hillside, New Jersey, was awarded a maximum value $215,000,000 cost-plus-award-fee, indefinite-delivery/indefinite-quantity contract for salvage related towing, harbor clearance, ocean engineering project and point-to-point towing services. The primary purpose of this contract is to provide services to assist in the performance of salvage of ships, craft, cargo, and other items as tasked (e.g., aircraft, weaponry, equipment); salvage related towing, harbor clearance; and point-to-point towing; and ocean engineering projects in support of the Supervisor of Salvage. Work will be performed along the North and South American East Coast, and is expected to be completed by September 2023. Fiscal 2018 operations and maintenance (Navy) funding in the amount of $50,000 was obligated at the time of award and expired at the end of the fiscal 2018. This contract was competitively procured via the Federal Business Opportunities website, with four offers received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-18-D-4307). (Awarded Sept. 28, 2018) SMIT Salvage Americas LLC, Houston, Texas, was awarded a maximum value $215,000,000 cost-plus-award-fee, indefinite-delivery/indefinite-quantity contract for salvage related towing, harbor clearance, ocean engineering project and point-to-point towing services. The primary purpose of this contract is to provide services to assist in the performance of salvage of ships, craft, cargo, and other items as tasked (e.g., aircraft, weaponry, equipment); salvage related towing, harbor clearance; and point-to-point towing; and ocean engineering projects in support of the Supervisor of Salvage, SEA. Work will be performed along the North and South American West Coast, and is expected to be completed by September 2023. Fiscal 2018 operations and maintenance (Navy) funding in the amount of $5,000 was obligated at the time of award and expired at the end of the fiscal 2018. This contract was competitively procured via Federal Business Opportunities website, with one offer received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-18-D-4308). (Awarded Sept. 28, 2018) SMIT Singapore PTE LTD, Singapore, was awarded a maximum value $215,000,000 cost-plus-award-fee, indefinite-delivery/indefinite-quantity contract for salvage related towing, harbor clearance, ocean engineering project and point-to-point towing services. The primary purpose of this contract is to provide services to assist in the performance of salvage of ships, craft, cargo, and other items as tasked (e.g., aircraft, weaponry, equipment); salvage related towing, harbor clearance; and point-to-point towing; and ocean engineering projects in support of the Supervisor of Salvage. Work will be performed across the Western Pacific region, and is expected to be completed by September 2023. Fiscal 2018 operations and maintenance (Navy) funding in the amount of $5,000 was obligated at the time of award and expired at the end of the fiscal 2018. This contract was competitively procured via Federal Business Opportunities website, with two offers received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-18-D-4309). (Awarded Sept. 28, 2018) PAE Applied Technologies LLC, Arlington, Virginia, is awarded a $24,292,143 cost-plus-award-fee modification to previously-awarded contract (N66604-05-C-1277), increasing the cumulative total value of the contract for operation and maintenance services for the Atlantic Undersea Test and Evaluation Center (AUTEC). AUTEC is the U.S. Navy's large-area, deep-water, undersea test and evaluation range. Underwater research, testing and evaluation of anti-submarine weapons, sonar tracking and communications are the predominant activities conducted at AUTEC. The contractor performs services required to perform AUTEC range operations and maintenance of facilities and range systems. In addition, the contractor is responsible for operating a self-sufficient one-square-mile Navy outpost. This modification increases the total value of the contract to $788,075,722. Work will be performed on Andros Island, Commonwealth of the Bahamas (82 percent); West Palm Beach, Florida (18 percent); and is expected to be completed by September 2019. No contract funds are being obligated at this time. The Naval Undersea Warfare Center Newport Division, Newport, Rhode Island, is the contracting activity. Lockheed Martin Corp., Rotary and Mission Systems, Moorestown, New Jersey, is awarded $8,020,809 for cost-plus-fixed-fee order N6339419F0003 under a previously awarded basic ordering agreement (N6339417G0001) for engineering services in support of land-based test site maintenance, inventory control, diminishing material source efforts, and program management for the Mk 92 fire control system. This order includes options which, if exercised, would bring the cumulative value of this order to $9,276,806. The order combines purchases for the Navy (16 percent); and the governments of Philippines (40 percent); Egypt (20 percent); Saudi Arabia (16 percent); Poland (4 percent); and Taiwan (2 percent). Work will be performed in Huntsville, Alabama (26 percent); Philippines (20 percent); Egypt (17 percent); Moorestown, New Jersey (13 percent); Saudi Arabia (13 percent); Port Hueneme, California (4 percent); Poland (3 percent); Taiwan (2 percent); and Nigeria (2 percent); and is expected to be completed by September 2022. Foreign military sales (other defense agencies) funding in the amount of $2,579,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Surface Warfare Center, Port Hueneme, California, is the contracting activity. U.S. TRANSPORTATION COMMAND Jacobs Technology Inc., Tampa, Florida, has been awarded a contract modification P00017 on contract HTC711-17-C-D001 in the amount of $18,940,678. This modification provides continued Information Technology Service Management Enterprise support to the U.S. Transportation Command (US TRANSCOM). Work will be performed primarily on-site at Scott Air Force Base, Illinois, and other locations: DISA DECC, St Louis, Missouri; USTRANSCOM Office, Washington District of Columbia; JECC, Norfolk, Virginia; and the Pentagon. The option period of performance is from Oct. 1, 2018, to Sept. 30, 2019. Fiscal 2019 transportation working capital funds operations, operations and maintenance and Defense Health Program funds were obligated at award. This modification brings the total cumulative face value of the contract to $48,981,052 from $30,040,374. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. DEFENSE LOGISTICS AGENCY Airtronics Inc.,* Tucson, Arizona, has been awarded a maximum $13,644,800 firm-fixed-price, indefinite-quantity contract for aviation cable assemblies. This was a competitive acquisition with three offers received. This is a two-year base contract with a one-year option period. Location of performance is Arizona, with an Oct. 16, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2021 defense working capital funds. The contracting activity is Defense Logistics Agency Aviation, Richmond, Virginia (SPE4A619D0001). DCX-CHOL Enterprises, Inc.,* Chatsworth, California, has been awarded a maximum $12,960,000 firm-fixed-price, indefinite-quantity contract for aviation cable assemblies. This was a competitive acquisition with three offers received. This is a two-year base contract with a one-year option period. Location of performance is California, with an Oct. 16, 2021, performance completion date. Using military service Army. The type of appropriation is fiscal 2019 through 2021 defense working capital funds. The contracting activity is Defense Logistics Agency Aviation, Richmond, Virginia (SPE4A619D0002). *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1656310/source/GovDelivery/

Thales has invested in Canada-based Virtual Marine's embedded ship simulation system as part of a new multi-phase research and development project. With an investment of more than $315,000, the project will involve development of a ship simulator for use across a range of platforms and projects in both naval, coastguard and commercial applications. Primarily it will support advanced platform testing and integration requirements for the Royal Canadian Navy programmes such as Arctic and Offshore Patrol Ships and Joint Support Ships In-Service Support (AJISS). Virtual Marine chief technical officer and executive vice-president Randy Billiard said: “The Ship Simulator Research project will result in a more innovative and technologically advanced ship simulator software product that will build on existing simulation technologies to enhance integration support and training options for prime defence integrators. “It will be tested by users who understand the need to properly de-risk systems for safe and full operational integration. This project will further position Virtual Marine as a leading and innovative provider of marine simulation solutions.” The research project will leverage Thales's extensive software engineering expertise and capabilities in big data, connectivity, artificial intelligence and cybersecurity to upgrade baseline technology. The 12-month project will help provide the company with improved embedded navigation simulation capabilities support. In August last year, Thales received a C$800m AJISS contract from the Government of Canada to provide in-service support, refit, repair, maintenance and training to the Canadian Navy's Arctic and Offshore Patrol Ships (AOPS) and Joint Support Ships (JSS). https://www.naval-technology.com/news/thales-invests-ship-simulation-system/

By: Jen Judson WASHINGTON — Lt. Gen. Eric Wesley is the new Army Capabilities Integration Center director and the first director to guide the center's efforts under the purview of the brand-new Army Futures Command, as opposed to Training and Doctrine Command, where the center lived since its inception. ARCIC will be responsible for the development of future operational and war-fighting concepts that align and inform the service's major modernization priorities that Futures Command is tasked to develop in a new and rapid way. In an unprecedented method, concept and capability development will be formed in parallel. In a wide-ranging interview with Defense News, Wesley discussed how the Army is evolving its major operational concept — Multidomain Operations 1.5 — and how ARCIC will continue to align modernization strategy with the concept as the Army heads toward a fully modernized force by 2028 — one that can provide overmatch against peer adversaries. When are you coming out with the new version of the Army's Multidomain Operations concept (MDO 1.5)? Will it be at the Association of the U.S. Army's annual conference? We're teasing it out. What we're going to do is deliver all of the principles and tenets of this new concept, and then you'll see the signed version within 30 days of that. Why is getting the MDO concept right so critical? I'll say upfront this is the most fundamental rewrite of an operational concept since AirLand Battle that was published in 1982. Concepts are critical, particularly at a point in time when you see the world's dynamics fundamentally shift in a way that you've got to, in many ways, reconfigure or redesign and modernize your army. What has changed in the world that requires multidomain operations? I'd say there are a number of things. But if there's a word that you want to remember in terms of identifying the challenges we face within the pacing threats, it is the word “standoff.” And what [our adversaries] have invested in are things that mitigate against the United States and our partners and allies' strengths. We're very good at close combat, and they've watched us over the last 30 years or so. And when you give the United States and our coalition partners and allies time to build up against it, usually the outcome is preordained based on ability to get into position and conduct operations the way we like to conduct them. So recognizing that, they've invested in what we oftentimes refer to as anti-access, area denial capabilities, which serendipitously came parallel with our withdrawal from the continent of Europe and the Korean Peninsula over the last 30 years. Fll article: https://www.defensenews.com/digital-show-dailies/ausa/2018/10/08/us-army-capabilities-integration-chief-talks-multidomain-ops

by James Langford A sweeping Defense Department review ordered by President Trump has identified roughly 300 gaps in weapon-makers' supply chains that could threaten U.S. military campaigns if they're not corrected, a senior administration official said Thursday. The report, commissioned in July 2017, will be presented to Trump on Friday, and the president is expected to earmark funds available through both the Defense Production Act and a 1939 defense stockpile program to address some of them, the official said. The issues were identified largely at small and midsize firms that have supplied top-line U.S. contractors like Boeing and Lockheed Martin and have been harmed more than their larger customers by cuts in U.S. government spending, the official said. Compiled by 16 working groups with hundreds of subject-matter exports, the report found both fragile markets and weakened companies, situations that could affect the production of devices such as propeller shafts, as well as supplies of raw materials like rocket fuel, ceramics used in body armor, and metals used in combat vehicles. "We have a situation where we've identified a number of vulnerabilities which demand immediate action," the official said. "This administration's hallmark is immediate action, and with this report, there's also a blueprint for actions that will be launched immediately." The review reflects the president's belief that economic security is synonymous with national security, highlighted with the imposition of double-digit tariffs on steel and aluminum earlier this year. Those duties were set under Section 232 of the Trade Expansion Act of 1962, which allows the White House to intervene in markets to protect national security. Full article: https://www.washingtonexaminer.com/business/us-defense-industry-report-finds-300-security-risks-needing-immediate-action

By: Aaron Mehta WASHINGTON — A combination of Chinese influence and budgetary uncertainty means America's defense industrial base is decaying at the lower levels, with some vital suppliers facing “domestic extinction,” a new study from the Trump administration is warning — and direct investment from the administration appears to be the solution. The study, the result of an executive order issued by president Donald Trump last July, also warns that if the situation is not remedied, the Pentagon faces “limited capabilities, insecurity of supply, lack of R&D, program delays, and an inability to surge in times of crisis.” The language seems dire, but much of the 140-page report appears to contain little new for those who have paid attention to defense industrial issues over the last several years. Many of the concerns outlined in the report echo that of a Defense Department internal study, released earlier this year, which warned long-term trends, including demographics and sole-source suppliers going out of business, were set to create major hurdles for the department. The report has been long coming. Trump ordered its creation in July of 2017, with Peter Navarro, his trade czar and a well-known China hawk, as the coordinating point man. At the time, Navarro said the study was being driven by concerns that “we cannot retain a preeminent military without a healthy, growing economy and a resilient industrial base.” By May 2018, the Pentagon had sent its conclusions into the White House for coordination which set industry expectations of a release shortly thereafter. However, the release dated continued to be pushed back, due largely to other news overtaking the White House. Trump, along with Deputy Secretary of Defense Pat Shanahan, is expected to appear at the White House Friday around 1:45 PM eastern time to sign several actions into law. The full report will be released shortly after. The report identifies five macro issues facing the defense industrial base: Sequestration and uncertainty in U.S government spending, which create instability and drives small firms away from defense work A decline of U.S. manufacturing capability and capacity, leaving weaknesses throughout the supply chain Antiquated U.S. government business practices, which the report warns leads to contracting delays and discourages innovation Industrial policies of competitor nations, both due to “collateral damage of globalization” and specific targeting by great powers like China And diminished U.S. STEM and trade skills, which are creating gaps in the workforce. The Departments of Defense, Energy, and Labor all submitted recommendations in the report, to deal with 300 individual weak points that are of concern. Notably, DoD's conclusion calls for the expansion of “direct investment in the lower tier of the industrial base,” through the department's Defense Production Act Title III, Manufacturing Technology, and Industrial Base Analysis and Sustainment programs. That would address “critical bottlenecks, support fragile suppliers, and mitigate single points-of-failure.” Ellen Lord, undersecretary of defense for acquisition and sustainment, told reporters it would not be “prudent” at this point to put a total dollar figure on what investment might be coming, but a senior administration official, speaking on background ahead of the report release, identified several shops being given extra cash. Those include $70 million fr a plant that produces gun components, in order to launch modernization and risk mitigation programs, as well as $1 million for the facility that produces the Abrams tank to procure better tooling. DoD's conclusions also call for the creation of an industrial policy to “inform current and future acquisition practices;” to attempt to diversify away from complete dependency on sources of supply in politically unstable countries who may cut off U.S. access, including “reengineering, expanded use of the National Defense Stockpile program, or qualification of new suppliers,” to work with allies on joint industrial base challenges; and to “modernize” the organic industrial base to ensure readiness. The Department of Energy, whose National Nuclear Security Agency handles the development of nuclear warheads, will propose establishing an “Industrial Base Analysis and Sustainment program to address manufacturing and industrial base risk within the energy and nuclear sectors” as part of its FY2020 budget request. And the Department of Labor will work to encourage STEM growth, as well as consider “potential incentives to recruit and retain workers to enter and/or stay in the industrial base, such as tuition reimbursement.” All three departments must provide an update 180 days from the issuance of the report. The Chinese Bogeyman While the report casts itself as part of the broader return of great power competition, it is impossible to miss that the authors view China as the industrial bogeyman. The words “China," “Chinese” or “Beijing” appear in the report 232 times; “Russia” appears only once, as part of a quote from another document — which also mentions China. The report is being released the same day that Vice President Mike Pence gave a keynote speech in Washington decrying what he called Chinese attempts to influence the American public, and just hours after Bloomberg issues a bombshell report that a Chinese company had managed to insert tiny, microscopic chips into hardware used by both the DoD and American intelligence services. “The Chinese Communist Party has also used an arsenal of policies inconsistent with free and fair trade, including tariffs, quotas, currency manipulation, forced technology transfer, intellectual property theft, and industrial subsidies doled out like candy, to name a few,” Pence said in his speech. “These policies have built Beijing's manufacturing base, at the expense of its competitors — especially America. That China is attempting to infiltrate the defense industrial base is no surprise to those who have been tracking DoD's comments on the issue in the last several years, but the report sums it up thusly: “While multiple countries pursue policies to bolster their economies at the expense of America's manufacturing sector, none has targeted our industrial base as successfully as China.” “China represents a significant and growing risk to the supply of materials and technologies deemed strategic and critical to U.S. national security; a challenge shared by key allies such as Germany and Australia,” the report adds, singling out rare earth metals and critical energetic materials for munitions and missiles as areas of concern. “China's actions seriously threaten other capabilities, including machine tools; the production and processing of advanced materials like biomaterials, ceramics, and composites; and the production of printed circuit boards and semiconductors.” China is four times as large as its next closest competitor when it comes to exporting to the U.S. rare earth materials, used in lasers, radar, sonar, night vision systems, missile guidance, and jet engines, making Beijing a significant supplier of these capabilities needed for America's high-end defense capabilities. Single sourced, and disappearing While much of the specific weak points in the defense industrial base are not spelled out in the public-facing part of the report, the 140-page document does include a number of examples of weak spots in the defense industrial base, largely in the lower-tier suppliers who make pieces and parts that would ordinarily go unnoticed on a large military system. A senior administration official, speaking ahead of the report's release, cited ceramics, high performance aluminum and steel, titanium, tungsten and carbon fibers as some of the components the Pentagon is concerned about. The report offers further examples. For instance, it says there are only four America suppliers with the capability to manufacture large, complex, single pour aluminum and magnesium sand castings, needed to help produce American airpower. Those suppliers “face perpetual financial risk and experience bankruptcy threats and mergers mirroring the cyclicality of DoD acquisition,” per the report. Meanwhile, there is only one qualified source for the upper, intermediate, and sump housing for an unnamed heavy lift platform used by the Marines (potentially the CH-53 King Stallion) that recently went through bankruptcy proceedings. “Without a qualified source for these castings, the program will face delays, impeding the U.S. ability to field heavy lift support to Marine Corps expeditionary forces,” the report warns. A material called ASZM-TEDA1 impregnated carbon is used in 72 chemical, biological and nuclear filtration systems owned by the DoD, and there is only a single qualified source, the report notes. “The current sourcing arrangements cannot keep pace with demand. DoD is using Defense Production Act Title III authorities to establish an additional source of this critical material,” the report says. In yet another example, the study looked at the companies that make flare countermeasures for military aircraft. There are only two domestic suppliers for flares with “little incentive to invest in infrastructure,” and both suffered explosions at their production sites in recent years. “Both companies have experienced quality and delivery problems since the accidents. As program offices look to improve quality and cost, they are beginning to look offshore at more modern facilities, where there are fewer quality and safety concerns.” Hawk Carlisle, a former Air Force officer who now leads the National Defense Industrial Association, called the reporter's findings “sobering." “Recent efforts by Congress and the administration have been encouraging, but more must be done,” Carlisle said. “Streamlining the acquisition process, updating the Committee on Foreign Investments in the United States guidelines, and reforming how we sell our systems to allies and partners have all been steps in the right direction.” Added Eric Fanning of the Aerospace Industries Association, "Guaranteeing the health of the American manufacturing and defense industrial base is a critical national security and economic priority as the United States combats today's threats and those we'll face tomorrow. We applaud the Administration's focus on these issues and look forward to working together to implement the assessment's recommendations with the same spirit of industry-government cooperation and engagement that led to today's report,” Both groups were part of 15 conversations the working group had with industry during the production of the report. https://www.defensenews.com/pentagon/2018/10/04/white-house-warns-of-domestic-extinction-of-suppliers-in-industrial-base-report-and-dod-is-ready-to-help-with-cash

NAVY Asturian-Consigli JV LLC,* Virginia Beach, Virginia (N40085-18-D-1124); Edifice LLC, doing business as Edifice Solutions,* Beltsville, Maryland (N4008-18-D-1125); ED DesignBuild LLC,* Germantown, Maryland (N40085-18-D-1126); HCG-JCG JV,* Escondido, California (N40085-18-D-1127); and Military and Federal Construction Co. Inc.,* Jacksonville, North Carolina (N40085-18-D-1128), were each awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity multiple award contract for general construction projects in the Hampton Roads area of Virginia. The maximum dollar value for all five contracts combined is $249,000,000. The work to be performed provides for, but is not limited to, new construction, renovation, alteration, and repairs for general construction projects. Types of facilities include, but are not limited to warehouses, training facilities, personnel support and service facilities, housing facilities, etc. Asturian-Consigli JV LLC is awarded initial task order at $2,947,636 for the foundation and crawl space repairs at the advanced electronic guidance and instrumentation system facility (V-10) on Wallops Island, Accomack County, Virginia. Work for this task order is expected to be completed by December 2019. All work on this contract will be performed in the Naval Facilities Engineering Command, Mid-Atlantic Hampton Roads area, Virginia. The term of the contract is not to exceed 60 months, with an expected completion date of September 2023. Fiscal 2018 operations and maintenance, (Navy) contract funds in the amount of $2,967,636 are obligated on this award and expired at the end of fiscal 2018. Future task orders will be primarily funded by operation and maintenance, (Navy) and military construction. This contract was competitively procured via the Navy Electronic Commerce Online website, with 19 proposals received. These five contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity. (Awarded Sept. 29, 2018) MacDonald-Bedford | MBP JV,* Alameda, California, was awarded a maximum amount $98,000,000 indefinite-delivery/indefinite-quantity contract to provide construction management services in support of the Guam Defense Policy Review Initiative (DPRI) Program. The work to be performed will support the existing Naval Facilities Engineering Command (NAVFAC) workforce capabilities and provide increased capability to support construction projects and associated efforts undertaken by NAVFAC Pacific. The outcome to be achieved is the hiring of temporary supplemental construction management and engineering technician services. No task orders are being issued at this time. Work will be performed primarily in the Marianas region of operation (to include the following islands but not limited to: Guam, Tinian, Pagan, Palau, Chuuk, Saipan, and Northern Mariana Islands) (80 percent); Australia (10 percent); and Hawaii (10 percent), and is expected to be completed by September 2023. Fiscal 2018 operations and maintenance (Navy) contract funds in the amount of $10,000 are obligated on this award and expired at the end of fiscal 2018. Future task orders will be primarily funded by operation and maintenance (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website, with six proposals received. The Naval Facilities Engineering Command, Pacific, Pearl Harbor, Hawaii, is the contracting activity (N62742-18-D-1171). (Awarded Sept. 29, 2018) Davcon Inc.,* Virginia Beach, Virginia (N40085-18-D-1149); Delaware Corp.,* Topping, Virginia (N4008-18-D-1150); Doyon Project Services,* Federal Way, Washington (N40085-18-D-1151); Rand Enterprises,* Newport News, Virginia (N40085-18-D-1152); and Within Interior Design Inc., doing business as Tazewell Contracting,* Norfolk, Virginia (N40085-18-D-1153), were each awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity multiple award contract for heating, ventilating and air conditioning construction projects in the Hampton Roads area of Virginia. The maximum dollar value for all five contracts combined is $95,000,000. The work to be performed will primarily consist of new construction, demolition, repair, alteration, and renovation of heating, ventilating and air conditioning equipment, systems and infrastructure to include system components such as fans, motors, ductwork, controls, pumps, piping, supports, and insulation. Types of facilities on which work will be performed include administrative/industrial buildings, maintenance shops, warehouses, hangars, communications facilities, personnel support/instructional buildings, recreational facilities, lodging/dormitory facilities, medical clinics, training areas, indoor ranges, etc. Davcon Inc. is being awarded initial task order at $148,400 for the replacement of a chiller at Building 3889 at Joint Expeditionary Base Little Creek-Fort Story, Virginia Beach, Virginia. Work for this task order is expected to be completed by February 2019. All work on this contract will be performed in the Naval Facilities Engineering Command, Mid-Atlantic Hampton Roads area, Virginia. The term of the contract is not to exceed 60 months, with an expected completion date of September 2023. Fiscal 2018 operations and maintenance (Navy) contract funds in the amount of $168,400 are obligated on this award and expired at the end of the fiscal 2018. Future task orders will be primarily funded by operations and maintenance (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website, with 11 proposals received. These five contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity. (Awarded Sept. 29, 2018) A&H-Ambica JV LLC,* Livonia, Michigan (N40085-18-D-8733); Building Associates Inc.,* Bloomington, Indiana (N4008-18-D-8734); Federal Construction Group Inc.,* San Diego, California (N40085-18-D-8735); Krempp Construction Inc., Jasper, Indiana (N40085-18-D-8736); Midnight Sun Global Services LLC,* South Bend, Indiana (N40085-18-D-8737); and SEI Group Inc., Huntsville, Alabama (N40085-18-D-8738), were each awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity multiple award contract for general construction projects in Crane, Indiana. The maximum dollar value for all six contracts combined is $95,000,000. The work to be performed provides for, but is not limited to, new construction, demolition, repair, alteration, and renovation of buildings, systems and infrastructure and may include civil, structural, mechanical, electrical, fire protection, and communication systems. Types of facilities include administrative, industrial, maintenance, warehouses, communications, personnel support, recreation, lodging, medical, training, ranges, roads, etc., in support of the Naval Facilities Engineering Command, Public Works Department Crane, Indiana. A&H-Ambica JV LLC is awarded initial task order at $1,876,276 for the renovation of Building 2724 Break Room Renovation at Public Works Department Crane, Indiana. Work for this task order is expected to be completed by October 2019. All work on this contract will be performed in the Naval Facilities Engineering Command, Mid-Atlantic Public Works Department Crane, Indiana area of responsibility. The term of the contract is not to exceed 60 months, with an expected completion date of September 2023. Fiscal 2018 Navy working capital contract funds in the amount of $1,901,276 are obligated on this award and expired at the end of fiscal 2018. Future task orders will be primarily funded by operations and maintenance (Navy); and military construction. This contract was competitively procured via the Navy Electronic Commerce Online website, with 19 proposals received. These six contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity. (Awarded Sept. 29, 2018) DEFENSE LOGISTICS AGENCY BP Products North America Inc., Chicago, Illinois, has been awarded a maximum $47,075,766 fixed-price with economic price adjustment contract for aviation fuel. This was a competitive acquisition with 19 offers received. This is a one-year base contract with no option periods. Location of performance is Singapore, with a Dec. 31, 2019, performance completion date. Using military services are Army, Navy, and Air Force. Type of appropriation is fiscal 2019 defense working capital funds. The contracting agency is Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE602-19-D-0452). Olgoonik Technical Services LLC, Anchorage, Alaska, has been awarded a maximum $11,579,403 modification (P00027) exercising the third one-year option period of a one-year base contract (SP3300-16-C-5001) with four one-year option periods for warehousing and distribution support services. This is a fixed-price-incentive firm contract with cost-reimbursement line items. The modification brings the total cumulative face value of the contract to $40,706,113 from $29,126,709. Locations of performance are Alaska and California, with an Oct. 15, 2019, performance completion date. Using customer is Defense Logistics Agency. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Distribution, New Cumberland, Pennsylvania. AIR FORCE Onvoi LLC, De Funiak Springs, Florida, has been awarded a $39,951,581 contract for base operating services at March Air Reserve Base, California. This contract provides for all personnel, supervision, equipment, tools, materials, supplies, test equipment, and other items and services necessary to accomplish supply, vehicle operations and maintenance, traffic management, real property maintenance, fuels management, and airfield management. Work will be performed at March ARB, California, and is expected to be completed by Oct. 31, 2023. This award is the result of a competitive acquisition and 10 offers were received. Fiscal 2019 operations and maintenance funds in the amount of $8,106,974 are being obligated at the time of award. Air Force Reserve Command Robins Air Force Base, Georgia, is the contracting activity (FA4664-19-C-0001). CORRECTION: The Sept. 28, 2018, announcement of a $1,051,818,540 cost-plus-fixed-fee contract award to The Aerospace Corp., El Segundo, California (FA8802-19-C-0001), for Federally Funded Research and Development Center support, was not for a contract modification. All other information in the announcement is correct. ARMY Oshkosh Defense LLC, Oshkosh, Wisconsin, was awarded a $16,038,473 modification (P00151) to contract W56HZV-15-C-0095 for spares acquisition integrated with production. Work will be performed in Oshkosh, Wisconsin, with an estimated completion date of Dec. 31, 2018. Fiscal 2018 procurement Marine Corps; and other procurement, Army funds in the amount of $16,038,473 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1654951/source/GovDelivery/

Murray Brewster · CBC News Canadian queries about Chinese content could be response to American anxiety, says intelligence expert Canada's international trade minister quietly sounded out officials at the Department of National Defence last spring about how much of the content in the navy's new Arctic Offshore Patrol Ships could be sourced back to China, newly released documents reveal. The unusual April request from the office of François​-Philippe Champagne, who was international trade minister at the time, was made as Canadian negotiators were struggling to negotiate a revised North American Free Trade Agreement with the Trump administration — which has become increasingly suspicious of the involvement of Chinese companies in the defence and high-tech sectors. An information note, detailing the answers given to Champagne, was prepared for Defence Minister Harjit Sajjan and obtained by CBC News under access to information law. "Equipment has been sourced from a variety of manufacturers, many of whom are offshore, with a very limited amount being procured from the People's Republic of China," said the April 4, 2018 briefing prepared by DND's project management office. Chinese steel The briefing made a point of underlining the Canadian content requirements that are part of every major capital project. It noted that 17 per cent of the steel being used to construct the warship — as well as the lifeboats, mooring and towing system components and various pipes and fittings — came from Chinese companies. Champagne was shuffled last summer to the infrastructure portfolio. Officials who worked for him said Wednesday they were not sure what his request was about. Defence and intelligence experts find the inquiry about the warship components curious — and not only because of Washington's growing trade fight with Beijing. The Pentagon has been quietly sounding out allies about who is building their military equipment, both hardware and software. "There's been some concern about this in ... U.S. military circles, about the degree to which there is Chinese ownership of firms working in sensitive areas," said Dave Perry, a procurement expert at the Canadian Global Affairs Institute. "At a fairly high level, the U.S. (Department of Defence) was concerned about Canada having involvement of firms in defence supply chain that has Chinese angles, Chinese partial ownership." The documents demonstrate how hard it can be to trace the provenance of military parts. One of the firms supplying anchors for the Arctic ships was Apache International Ltd., which has listed itself as a Canadian company with an office in China. Following Champagne's questions, it was determined the original manufacturer of the equipment was Chinese. Wesley Wark, a University of Ottawa professor and one of the country's leading experts on cybersecurity and intelligence, said the Americans' concern relates mostly to electronics and other "warfighting equipment" — not necessarily the nuts and bolts. The U.S. Defence Department's acquisition chief said last summer the Pentagon was developing a so-called "Do Not Buy" list of software that does not meet national security standards. 'A certain xenophobia' Canadian concerns about Chinese product in the Arctic ships could be influenced by American concerns, said Wark, who noted that Canada has struck an independent tone when it comes to trade relations with China and has resisted U.S. and Australian pressure to ban Chinese telecom giant Huawei. "Canada has been under intense pressure by the Trump administration to follow the general lead on waging a trade war with China," he said. "There is White House pressure on the Pentagon. The Pentagon has legitimate concerns, like any Western military, about allowing certain elements of Chinese manufactured stuff into its infrastructure." Complicating matters is an almost-forgotten case of alleged espionage that is still grinding its way through the legal system. Chinese-born Qing Quentin Huang, who worked for Lloyd's Register, was charged in 2013 with "attempting to communicate with a foreign entity." He was accused of trying to pass design information about Canada's Arctic ships to the Chinese. Aside from its understandable military and economic policy concerns, Wark said the White House position on China is being driven in part by "a certain xenophobia" that is troubling. "You have to be careful not to find ourselves falling into that American model," he said. "We can make our own distinctions about what might be sensitive or dangerous." https://www.cbc.ca/news/politics/chinese-made-equipment-in-canada-s-arctic-ships-under-scrutiny-1.4849562

Invites Canadian small businesses to develop innovative solutions to nine new challenges October 3, 2018 – Ottawa, Ontario Small businesses and their ability to innovate make Canada's economy run. At the same time, the federal government is Canada's largest purchaser of goods. How can the government use these purchases to help small businesses innovate and grow? The answer is Innovative Solutions Canada. Through this program, government departments are inviting small businesses to come up with a new innovative product, service or solution in answer to specific challenges they face. Winning small businesses may receive up to $150,000 to refine their research and development and, if accepted into Phase 2, receive up to $1 million to develop a working prototype. The Government will then act as a first customer, helping small businesses to commercialize their innovations, scale up their business and create good jobs. The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, and the Honourable Mary Ng, Minister of Small Business and Export Promotion, today announced nine challenges on behalf of the Honourable Carla Qualtrough, Minister of Public Services and Procurement and Accessibility, the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, the Honourable Jonathan Wilkinson, Minister of Fisheries, Oceans and the Canadian Coast Guard, the Honourable Ralph Goodale, Minister of Public Safety and Emergency Preparedness, and the Honourable Marc Garneau, Minister of Transport. Agriculture and Agri-Food Canada is challenging small businesses to: 1. Improve soil sample collection to make it easier, and make testing more accurate 2. Make “smart farming” technology cheaper so that smaller farms can use it Canadian Coast Guard is challenging small businesses to: 3. Harness the movement of ships in ocean waves to reduce fuel consumption and the need for external power sources Correctional Service Canada is challenging small businesses to: 4. Find new technology to stop inmates from performing illegal activities using wireless devices 5. Monitor the life signs of inmates and identify critical conditions so that staff can respond more quickly in emergencies 6. Create an innovative and cost-effective way to stop contraband items from getting into prisons via drone or being thrown over the fence Public Services and Procurement Canada is challenging small businesses to: 7. Improve the sound quality for remote interpretation services so that service isn't interrupted because the interpreters can't hear Shared Services Canada is challenging small businesses to: 8. Deliver high-speed broadband Internet access to citizens and Government of Canada employees who work or live in remote areas of the country Transport Canada is challenging small businesses to: 9. Accelerate the adoption of low-cost yet effective technologies that improve pedestrian and bicyclist safety around commercial vehicles, preventing injuries and saving lives Innovative Solutions Canada is a key component of the government's Innovation and Skills Plan, a multi-year plan to make Canada a global innovation leader and prepare Canadians to succeed in tomorrow's economy. Quotes “In the Economic Strategy Tables reports, we heard it clearly from Canada's industry and innovation leaders: the Government must use its purchasing power to help small businesses innovate and be more competitive. That's exactly what we're doing through Innovative Solutions Canada. Government gets access to quality products, while businesses grow and create good middle-class jobs for Canadians.” – The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development “Small businesses are the backbone of our economy and employ over 8 million hard-working Canadians. That's why our government is committed to helping small businesses start up, scale up and access new markets. Innovative Solutions Canada is a fantastic program that uses government procurement to help small and medium-sized businesses innovate and then commercialize their innovations. These are worthy new challenges, and I can't wait to see what our innovative Canadian small businesses come up with.” – The Honourable Mary Ng, Minister of Small Business and Export Promotion “Through the Innovative Solutions Canada program, we are challenging small businesses to help us provide Canadians and federal employees with access to the services they need, whether it is accurate translation of proceedings or improved efficiency of high-speed Internet access in remote locations.” – The Honourable Carla Qualtrough, Minister of Public Services and Procurement and Accessibility and Minister responsible for Shared Services Canada Innovation is a driving force of Canada's agricultural sector. Through these challenges, small business innovators can help agriculture researchers, smaller-scale farms and processing plants access the tools and technologies they need to be environmentally sustainable and economically prosperous. We look forward to seeing their creative solutions to help drive the sector forward and create good middle-class jobs for Canadians.” – The Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food “The Canadian Coast Guard is a leader in environmental stewardship and marine safety. By partnering with innovative small businesses to find ways to reduce fuel consumption, we are supporting our government's commitment to reduce emissions and protect our marine environment.” – The Honourable Jonathan Wilkinson, Minister of Fisheries, Oceans and the Canadian Coast Guard “Partnering with Innovative Solutions Canada is a great opportunity to share new ideas that contribute to public safety for all Canadians. I welcome innovative ideas that support Correctional Service Canada's mandate of actively encouraging and assisting federal offenders in becoming law-abiding citizens.” – The Honourable Ralph Goodale, Minister of Public Safety and Emergency Preparedness “I'm pleased to see this initiative being used to explore new ways to protect vulnerable road users. This program is an excellent opportunity to encourage small businesses to be new partners in road safety by advancing technologies that improve safety for pedestrians and cyclists.” – The Honourable Marc Garneau, Minister of Transport Quick facts Program funding will come from the 20 departments and agencies participating in Innovative Solutions Canada. Each department will set aside funding for this initiative that amounts to one percent of its 2015–16 combined procurement and internal research and development expenditures. Together, the funding from the departments and agencies represents a more than $100-million investment over the course of five years. Small businesses make up 98 percent of Canadian businesses and employ over 8 million hard-working Canadians. Innovative Solutions Canada is encouraging submissions from businesses owned and led by women, Indigenous peoples, youth and members of visible minorities by ensuring those groups are included in the program's outreach plans and activities. There are hundreds of programs and services that offer everything from funding to expert advice to help businesses innovate, create jobs and grow Canada's economy. With a simple, story-based user interface, the new Innovation Canada platform can match businesses with the most fitting programs and services in about two minutes. Associated links Innovative Solutions Canada challenges News release: Government helping small businesses innovate News release: Government helping small businesses develop sustainable solutions Contacts Follow Innovation, Science and Economic Development Canada on Twitter: @ISED_CA Nilani Logeswaran Press Secretary Office of the Minister of Innovation, Science and Economic Development 343-291-2849 613-668-1794 Sandra Aubé Director of Communications Office of the Minister of Small Business and Export Promotion 343-998-5328 Media Relations Innovation, Science and Economic Development Canada 343-291-1777 ic.mediarelations-mediasrelations.ic@canada.ca https://www.canada.ca/en/innovation-science-economic-development/news/2018/10/government-challenges-small-businesses-to-innovate.html