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By: Aaron Mehta WASHINGTON — The U.S. government has placed a new $127 million order for 248 Joint Light Tactical Vehicles from Oshkosh, the company announced Wednesday. The award would provide JLTVs for the U.S. Army, Marine Corps and State Department. “The JLTV was designed to provide our troops with unmatched mission capabilities,” George Mansfield, vice president and general manager of joint programs for Oshkosh Defense, said in a statement. “And while adversaries, terrains, and tactics have all evolved immensely since the vehicle's conception, the JLTV's flexible design allows the light tactical vehicle fleet to evolve at a similar pace.” This contract is the third order placed in the last seven months for JLTV production. A $407.3 million package for 1,240 vehicles to the U.S. Marine Corps, Slovenia and Lithuania was awarded in February. In December, the company received a $803.9 million award for 2,721 vehicles for the American military and ally Montenegro. Oshkosh beat out Humvee-maker AM General and Lockheed Martin in 2015 to build the replacement for the Humvee for both the Army and the Marine Corps. The low-rate initial production contract was worth $6.7 billion, and the entire program is estimated to be worth $30 billion through 2024. Since a production contract was awarded in 2015, Oshkosh says it has delivered 7,500 total vehicles to the U.S. and partners abroad. In its fiscal 2021 budget request, the Army asked for $894.4 million to buy 1,920 JLTVs. However, that number is down from what had initially been projected by the service; as part of the “night court” process, designed to reprioritize the service's investments and projects, the Army is stretching its planned JLTV buy out in order to reinvest dollars to modernization priorities. https://www.defensenews.com/land/2020/07/01/us-buys-another-248-jltvs-from-oshkosh/

Valerie Insinna WASHINGTON — The U.S. Air Force on July 1 announced its second round of Advanced Battle Management System contracts, a series of awards to 18 companies worth up to $950 million apiece. Each of the winning companies will receive indefinite delivery, indefinite quantity awards worth $1,000 to start with, but will have the chance to win additional funding over the next five years for the products that will make up the ABMS family of systems. The Air Force views ABMS as its primary vehicle to accomplish what the U.S. military is calling Joint All Domain Command and Control, or JADC2. The goal of JADC2 is to transform the often-stovepiped nature of current weapons systems by rapidly fielding technologies that will allow sensors and shooters to share data securely and instantly. “Just like the Internet of Things, our Air and Space Force platforms will only be as effective as the data they can access, machine-to-machine,” Will Roper, the Air Force's assistant secretary for acquisition, technology and logistics, said in a statement. “To field a complex set of capabilities at digital speeds requires a different, more innovative acquisition strategy,” he said. “With ABMS, we are adopting best practices from the private sector to get capabilities into the hands of the warfighter years ahead of traditional approaches.” With the Air Force projecting to spend $3.3 billion on ABMS over the next five years, not every contractor will receive funding up to each contract's $950 million ceiling, or even close to that. Instead, each contract is meant to establish a list of companies that can respond to future ABMS solicitations, said Air Force spokesman Capt. Clay Lancaster. The 18 contractors include: Accenture Federal Services; Ball Aerospace & Technologies Corp.; Black River Systems; Booz Allen Hamilton; CAE USA Mission Solutions; Cubic (GATR Technologies); Global Air Logistics and Training; Leidos; Mercury Defense Systems; Metron; NetScout Systems; Octo Consulting Group; Omni Fed; Rincon Research Corporation; Rise8; SAIC; Strategic Mission Elements; and Wind River Systems. An additional 28 companies also won indefinite delivery, indefinite quantity contracts in late May. To get an IDIQ contract, companies had to submit general cost and technical information about their products, Lancaster said. Each $1,000 award would allow each firm to prepare a more comprehensive presentation as the Air Force details what it's looking for under each of the ABMS product lines, which include applications for fusing and sharing data, a cloud-network, items like government-owned software-defined radio, and apertures and devices like smartphones and tablets that can be used to receive classified data. “There will be follow-up technical discussions where the government can inform vendors in more detail what we're looking for, and vendors can let the government know what they have to offer,” Lancaster said. “After that, a series of focused solicitations will be announced across multiple categories and made available to vendors that are on the IDIQ. Vendors will then submit specific proposals against these solicitations. The government will review these solicitations and award task orders to support technology development and then integrate these technologies into ABMS product lines and potential participation in ABMS onramps.” Instead of a traditional acquisition program, where a service comes up with requirements and then companies compete to build it, the Air Force intends to hold “ABMS onramps” multiple times per year to experiment with existing technologies and test whether they'd work in an operational environment —allowing commanders to weigh in and pick which capabilities are funded and when. The service held the first demonstration in December 2019. The second onramp, which was delayed due to the COVID-19 pandemic, has been rescheduled for late August and will simulate an attack on U.S. space assets. U.S. Space Command, U.S. Northern Command and U.S. Strategic Command are to participate in the simulation. The third demo, scheduled for September, will involve U.S. Indo-Pacific Command and U.S. Space Command. https://www.c4isrnet.com/it-networks/2020/07/01/the-air-force-awarded-another-batch-of-contracts-to-build-its-new-battle-management-system

Byron Callan June 30, 2020 The COVID-19 pandemic has stoked consternation that U.S. defense spending is going to be significantly pressured in the 2020s. Congress will likely stick to the $740.5 billion defense discretionary top line agreed to in last year's budget deal for fiscal 2021. But the combination of trillions more in federal debt from higher spending and lower tax receipts this year and next and the probability that there will be future federal spending to better prepare for pandemics raise a higher probability of defense spending pressure. “Flat” was already the new “up,” but “flat” now may be a budget that does not keep pace with annual inflation. The fears may be that defense spending will decline in the 2020s after a couple of good years of largesse from Congress and the White House. Despite trillions in additional deficits and federal borrowing in 2020-21, there is one bright spot that indicates less dire defense spending pressures than now perceived—the interest on the federal debt. U.S. federal debt is comprised of debt held by the public and intragovernmental debt, which is owned by different federal trust funds, the largest of which is Social Security. As of May, total debt held by the public was $19.8 trillion, and intragovernmental debt was another $6 trillion. Often, these two sums are lumped together, but they should be treated separately. The interest paid on debt held by the public is dispersed by the Treasury in the form of outlays to the owners of that debt. The interest paid on intragovernmental debt is, in essence, interest the federal government pays itself. The Office of Management and Budget (OMB), in its annual projections of outlays, breaks out these two components of interest outlays to show net interest outlays. This is mandatory spending, and so it has been paid along with the other mandatory and discretionary funding the U.S. federal government provides. One of the silver linings of the pandemic has been the Federal Reserve's aggressive lowering of interest rates. This makes federal debt more affordable, much in the way that a lower interest rate on a home mortgage can make a place to live more affordable. The OMB projections released in February showed net interest outlays of $378 billion for fiscal 2021 rising to $665 billion by 2030. One could take issue with the deficit projections behind these outlay projects, as they may have rested on GDP growth expectations that were too optimistic and nondefense spending cuts that were not going to be realized. However, dividing interest outlays on debt held by the public by debt projections implied an interest rate of 3% or more over the forecast period. The pandemic has trashed those rate projections. Federal debt held by the public is offered in different maturities. Treasury bills, which mature in a year or less as of May, were 23% of the total debt held by the public. Treasury notes that mature in 1-10 years were 51%, and bonds that mature in 10-30 years were 12%. (There is another 10% of other Treasury instruments.) Rates now are much lower, although clearly that would only matter for new debt that is issued by the Treasury. The rate on a 90-day Treasury bill is currently 0.13%. On a five-year note, it is 0.33%, and on the 10-year note, 0.69%. The 30-year note rate is 1.4%. This implies that interest outlay projections should be declining, although new projections may have to wait until the White House releases its 2022 fiscal budget request and out-year projections, presumably in February-March 2021. Net interest outlays could be at least $100 billion less in 2022-23 than the February 2020 projections on higher debt but lower rates. In the scheme of total federal outlays, which the OMB projected to be $4.8 trillion for 2021, $100 billion is not a lot, but it indicates there is a bit more headroom for defense spending and other nondefense discretionary spending than a focus on federal debt alone might suggest. Federal infrastructure spending could be one area of more traction in the 2020s, and the issue of social justice may also spur more demand for federal resources. One outcome of the pandemic, however, will be to make defense expectations more sensitive to interest rate expectations. It is not too difficult to project scenarios with rising debt and interest rates that increase to more “normal” levels. The pandemic also underscores that the unthinkable should be given a bit more room on long-term projections. It is quite conceivable that a major military conflict, a massive natural disaster or another economic contraction could further add to federal debt in the 2020s. https://aviationweek.com/defense-space/budget-policy-operations/opinion-why-interest-federal-debt-matters-defense

July 1, 2020 | By John A. Tirpak General Electric received a $101.4 million contract for the first batch of engines to power the F-15EX fighter being acquired by the Air Force, according to a June 30 notice from the Pentagon. The sole-source contract buys and installs F110-GE-129s plus spares, but USAF didn't specify how many engines are being acquired in the action. The engines are to be delivered by Nov. 30, 2022. This first batch of F-15EX engines is being procured sole-source because of “an unusual and compelling urgency acquisition,” according to the announcement. The GE engine is the only one certified for the F-15Q, which the F-15EX is based, and competition was waived on this batch in order to expedite testing of the F-15EX. Subsequent buys of F-15EX engines, however, will be open to competition, the Air Force said in May. In February, Pratt & Whitney—now part of Raytheon Technologies—protested an early decision to just buy the F110 powerplant for the whole F-15EX fleet, and the Air Force in March dropped its plan to use the GE engine exclusively. The service will need up to 461 new engines to power as many as 144 F-15EX fighters. Pratt is planning to offer its F100-229 engine, but would have to certify the engine for the “Advanced F-15” at its own cost. The Air Force said testing can take place “concurrently” with production. No obstacles are seen to integration of the Pratt engine. The company noted it is the “exclusive propulsion system for USAF's entire fleet of operational F-15s.” The service wants up to six competed engines to be delivered per month, with the first deliveries in 2023. https://www.airforcemag.com/ge-gets-contract-for-first-batch-of-f-15ex-engines

By: Nigel Pittaway MELBOURNE, Australia — Australia plans to increase defense spending over the next decade to AU$270 billion (U.S. $187 billion) in response to what it says is a deteriorating regional environment. The July 1 announcement by Prime Minister Scott Morrison about the plan coincides with the launch of the government's 2020 Defence Strategic Update and the associated Force Structure Plan, which will raise projected spending from AU$195 billion as laid out in the 2016 Defence White Paper. “The simple truth is this: Even as we stare down the COVID pandemic at home, we need to also prepare for a post-COVID world that is poorer, that is more dangerous and that is more disorderly,” Morrison said during the documents launch at the Australian Defence Force Academy on Wednesday. “We have not seen the conflation of global, economic and strategic uncertainty now being experienced here in Australia in our region since the existential threat we faced when the global and regional order collapsed in the 1930s and 1940s.” Morrison also cited trends including military modernization, technological disruption and the risk of state-on-state conflict as further complicating factors in the Indo-Pacific region, which he said has deteriorated more rapidly than forecast by the previous whitepaper from 2016. “The Indo-Pacific is the epicenter of rising, strategic competition. Our region will not only shape our future; increasingly though, it is the focus of the dominant global contest of our age,” he said. “Tensions over territorial claims are rising across the Indo-Pacific region, as we have seen recently on the disputed border between India and China, and the South China Sea and the East China Sea.” What do the documents say? The two defense documents forecast the development of closer ties with Australia's regional partners and with the U.S., but it also warns of the need for enhanced self-reliance, which Morrison said signals the country's “ability and willingness” to project military power and deter actions against it. “Relations between China and the U.S. are fractious at best as they compete for political, economic and technological supremacy. But it's important to acknowledge that they are not the only actors of consequence. The rest of the world and Australia are not just bystanders to this,” he said. “Japan, India, the Republic of Korea, the countries of Southeast Asia, Indonesia, Malaysia, Singapore, Vietnam and the Pacific all have agency, choices to make, parts to play, and of course so does Australia.” Additional capabilities to those already being acquired include long-range strike weapons, area-denial systems and cyber tools — including the establishment of an offensive cyber capability. Also included on Australia's shopping list is the Lockheed Martin AGM-158C long-range anti-ship missile, which would become the country's next air-launched maritime strike weapon under Project Air 3023 Phase 1. Defence Minister Linda Reynolds confirmed Thursday that Australia will acquire an unspecified number of LRASM weapons through a Foreign Military Sales deal with the U.S. Navy. Training on the weapon is to begin in the U.S. in 2021. The missile will initially be employed by the Royal Australian Air Force's fleet of 24 Boeing F/A-18F Super Hornet strike fighters, with an initial operational capability to follow in 2023. Reynolds said the missile will also be integrated with Australia's F-35A jets, which are also made by Lockheed. Australia is also seeking replacement fleets for the Royal Australian Air Force's Lockheed Martin C-130J-30 Hercules, Airbus KC-30A Multi Role Tanker Transport aircraft, Boeing E-7A Wedgetail airborne early warning and control planes and EA-18G Growler electronic attack platforms. The country's Jindalee Operational Radar Network is also to be expanded to cover Australia's eastern approaches. The government is also backing the creation of a hypersonic weapons development program. The documents also call for the Royal Australian Navy to receive two new multipurpose sealift and replenishment vessels and up to eight mine countermeasures and tactical hydrographic vessels, to be based on the Arafura-class offshore patrol vessels now under construction in local shipyards. The Australian Army is to receive an active protection system for its Hawkei and Bushmaster fleets of protected mobility vehicles; two regiments of self-propelled howitzers, to be built locally; and a replacement for its Abrams M1A1 main battle tanks. https://www.defensenews.com/global/asia-pacific/2020/07/02/australia-releases-weapons-wish-list-amid-defense-spending-boost/

Nathan Strout Less than two weeks after the U.S. Space Force invoked the Defense Production Act to prop up six small launch providers, those awards have been withdrawn. On June 16, the Space and Missile Systems Center announced in a beta.SAM.gov post that it was awarding rideshare contracts to six companies approved by the Industrial Base Council: Aevum, Astra, X-BOW, Rocket Lab USA, Space Vector and VOX Space. Each company was to be awarded two rideshare missions to be conducted over the next 24 months. The value of those contracts was not revealed. But as first reported by SpaceNews, SMC has withdrawn those awards. A new statement on beta.SAM.gov notes that the government “is re-evaluating its strategy on how best to proceed with this action” after receiving several responses to its decision. As a result, the contracts will not be awarded at this time. A Justification and Approval document was supposed to be made public within 14 days of contract award, but the withdrawal of the awards occurred before that deadline. While Space Force officials haven't spoken publicly about the Defense Production Act awards since they were announced online, the Pentagon was vocal in expressing concern about COVID-19 impacts on the small launch market in the months leading up to the announcement. On April 20, Undersecretary of Defense for Acquisition and Sustainment Ellen Lord stated that the small launch market was one of three sectors she was most worried about. The Space and Missile Systems Center elaborated on her remarks in a statement to C4ISRNET. “There is concern that the current financial and market constraints resulting from the COVID-19 have reduced funding sources necessary to continue development and operations for the nascent small launch industry,” said Col. Rob Bongiovi, director of SMC's launch enterprise directorate. “Much of the industry have limited flight capability or are in the critical transition from development to flight and this funding restriction may prevent or delay these systems. The Space and Missile Systems Center is evaluating the impacts to the small launch industrial base to consider actions to enable a robust U.S. launch industrial base.” Shortly thereafter, the Space Force Acquisition Council held an emergency meeting to discuss how they could support industry partners negatively impacted by COVID-19. The council ultimately sent out a survey to members of the Space Enterprise Consortium to see what industry needed from the Department of Defense. Finally on June 16, the same day the announcement went live, SMC Commander Lt. Gen. John “JT” Thompson suggested that the Space Force would use Defense Production Act awards to support the small launch market. “In the small launch environment, Secretary Lord and [U.S. Space Force Service Acquisition Executive Will] Roper have both commented about how important small launch is to our enterprise, and I can't give you the details right now but I would anticipate here very shortly some very critical Defense Production Act awards to our small launch providers to keep that industry going,” Thompson said https://www.c4isrnet.com/battlefield-tech/space/2020/07/02/space-force-walks-back-stimulus-contracts-for-small-launch-providers/

ARMY EA-Baker JV, Hunt Valley, Maryland, was awarded a $99,000,000 firm-fixed-price contract to support the U.S. Army Corps of Engineers in executing the Defense Logistics Agency Energy fuels infrastructure mission for fuel leak detection. 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 July 2, 2025. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-20-D-0028). NCI Information System, Reston, Virginia, was awarded a $57,285,857 contract for information technology and audiovisual engineering and installation services. Bids were solicited via the internet with one received. Work will be performed in Fort Belvoir, Virginia, with an estimated completion date of July 1, 2022. Fiscal 2020 procurement, defense-wide funds in the amount of $57,285,857 were obligated at the time of the award. The Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity. (W50NH9-20-F-0039). Don Jon Marine Co., Hillside, New Jersey, was awarded a $19,697,607 modification (P00004) to contract W912DS-19-C-0013 for dredging the Newark Bay main channel. Work will be performed in Newark, New Jersey, with an estimated completion date of Sept. 27, 2020. Fiscal 2018, 2019, and 2020 civil construction funds in the amount of $19,697,607 were obligated at the time of the award. U.S. Army Corps of Engineers, New York, New York, is the contracting activity. LGC Global Inc.,* Detroit, Michigan, was awarded a $7,506,196 firm-fixed-price contract for construction of a youth center annex at Joint Base McGuire-Dix-Lakehurst. Bids were solicited via the internet with 11 received. Work will be performed at Joint Base McGuire-Dix-Lakehurst, New Jersey, with an estimated completion date of July 16, 2021. Fiscal 2020 non-appropriated funds in the amount of $7,506,196 were obligated at the time of the award. U.S. Army Corps of Engineers, New York, New York, is the contracting activity (W912DS-20-C-0016). AIR FORCE LinQuest Corp., Los Angeles, California, has been awarded a $76,637,171 cost-plus-fixed-fee modification (P00014) to contract FA8808-19-C-0006 for system engineering, integration and test support for programs with increased security requirements. The modification includes an eight-month base, valued at $11,165,983, and six year-long options. Work will be performed in El Segundo, California, and is expected to be completed February 2027. Fiscal 2019 research, development, test and evaluation funds in the amount of $400,000 are being obligated at the time of award. Total cumulative face value of the contract is $142,307,233. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. SRC Inc., North Syracuse, New York, has been awarded a $7,458,946 follow-on task order for baseline support services under the indefinite-delivery/indefinite-quantity contract FA7037-17-D-0001 for the sensor beam program. The contractor will research, analyze, technically document and perform reviews on electromagnetic systems, events and signatures required by all services and other U.S. agencies. Work will be performed at Joint Base San Antonio-Lackland, Texas, and is expected to be completed Aug. 1, 2021. Fiscal 2020 operations and maintenance funds in the amount of $7,314,490 are being obligated at the time of award. Acquisition Management and Integration Center-Detachment 2, Joint Base San Antonio-Lackland, Texas, is the contracting activity. NAVY Huntington Ingalls Industries - Newport News Shipbuilding, Newport News, Virginia, is awarded a $36,566,645 cost-plus-fixed-fee option exercise modification to previously awarded contract N00024-20-C-2109 for engineering, technical, trade and program management support of industrial type work for operational and decommissioning submarines, submarines undergoing availabilities/conversion, special mission submersibles and submarine support facilities. Work will be performed in Newport News, Virginia (90%); Kings Bay, Georgia (3%), Bremerton, Washington (2%); Pearl Harbor, Hawaii (2%); Kittery, Maine (2%); and Groton, Connecticut (1%). This contract includes advanced submarine research and development, including studies to support the future development, production and sustainment phases of the platforms. Work is expected to be completed by September 2022. This contract was not competitively procured. Fiscal 2020 other procurement (Navy) funding in the amount of $5,461,081 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, D.C., is the contracting activity. L3 Technologies Inc. KEO, Northampton, Massachusetts, is awarded a $25,713,600 cost-plus-incentive-fee contract for engineering and technical services for the design, development, testing, system support and production of submarine photonics masts. This contract includes options which, if exercised, will bring the cumulative value of this contract to $135,810,491. Work will be performed in Northampton, Massachusetts, and is expected to be completed by June 2025. Fiscal 2020 shipbuilding and conversion (Navy) funding in the amount of $25,514,600; and fiscal 2020 research, development, test and evaluation funding in the amount of $199,000 will be obligated at time of award. Funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-20-C-6249). Bristol General Contractors LLC, Anchorage, Alaska, is awarded a $22,974,412 firm-fixed-price contract for the Mission Training Complex at Shaw Air Force Base. Work will be performed in Sumter, South Carolina. The work to be performed provides for the construction of a small standard design mission training complex, to include the following: security access facility, tactical operations center pads, building information systems, energy monitoring and control system connection and intrusion detection system installation. Work is expected to be complete by May 2022. Fiscal 2018 military construction contract funds in the amount of $22,974,412 are obligated on this award and will expire at the end of fiscal 2023. This contract was competitively procured via the Navy Electronic Commerce Online website and four proposals were received. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity (N69450-20-C-0040). R. A. Burch Construction Co. Inc.,* Ramona, California, is awarded an $8,359,504 firm-fixed-price task order (N62473-20-F-4857) under a multiple award construction contract for the design and construction to renovate Building F at Naval Air Station North Island (NASNI), Naval Base Coronado. The task order also contains one planned modification, which, if issued will increase cumulative task order value to $9,045,991. Work will be performed in San Diego, California. The work to be performed includes all services, labor, materials and equipment necessary to design and build critical infrastructure to support installation and renovation to Building F at NASNI. The project also includes interior improvements to create additional office space on the north side of the building, landscape improvements for the southern courtyard and provide exposed ceilings in the building. The planned modification, if issued, provide for furniture, fixtures and equipment. Work is expected to be completed by January 2022. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $8,359,504 are obligated on this award and will expire at the end of the current fiscal year. Five proposals were received for this task order. The Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity (N62473-15-D-2485). DEFENSE LOGISTICS AGENCY New Market Veterans,* New York, New York (SPE1C1-20-D-1296, $15,061,167); Big Apple Visual Group,* New York, New York (SPE1C1-20-D-1294, $14,604,768); and Hilo Enterprises,* McLean, Virginia (SPE1C1-20-D-1295, $13,235,571), have each been awarded a maximum firm-fixed-price, indefinite-quantity contract under solicitation SPE1C1-20-R-0102 for surgical masks. These were competitive acquisitions with 98 offers received. They are five-month contracts with no option periods. Locations of performance are Virginia, New York, China, and Taiwan, with a Dec. 31, 2020, ordering period end date. Using customer is Health and Human Services. Type of appropriation is fiscal 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Mercury Defense Systems Inc., Cypress, California, was awarded a $7,280,300 modification (P00006) to previously awarded contract HR0011-18-C-0133 for additional in-scope work on a Defense Advanced Research Projects Agency research project. Work will be performed in Cypress, California, with an expected completion date of October 2022. Fiscal 2020 research, development, test and evaluation funds in the amount of $2,208,097 are being obligated at time of award. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity. *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2246455/source/GovDelivery/

Pascagoula, Miss., June 30, 2020 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries' (NYSE: HII) Ingalls Shipbuilding division has been awarded a $936 million contract for the construction of an additional Arleigh Burke-class (DDG 51) Flight III destroyer for the U.S. Navy. In 2018, Ingalls was awarded a $5.1 billion fixed-price incentive, multiyear contract for construction of six Arleigh Burke-class Flight III destroyers for the U.S. Navy. “We take great pride in the craftsmanship of our shipbuilders, and in the capabilities of our world-class shipyard,” Ingalls Shipbuilding President Brian Cuccias said. “This contract award provides great momentum for Ingalls and our more than 600 suppliers, in nearly 40 states, as we enter the second half of the year. We continue to focus on high performance and providing the greatest value possible to our customers.” Ingalls has delivered 32 destroyers to the Navy and has four more under construction including Frank E. Petersen Jr. (DDG 121), Lenah H. Sutcliffe Higbee (DDG 123), Jack H. Lucas (DDG 125) and Ted Stevens (DDG 128). Ingalls delivered Delbert D. Black (DDG 119) to the Navy in April. Arleigh Burke-class destroyers are capable, multi-mission ships and can conduct a variety of operations, from peacetime presence and crisis management to sea control and power projection, all in support of the United States' military strategy. These guided missile destroyers are capable of simultaneously fighting air, surface and subsurface battles. These ships contains myriad offensive and defensive weapons designed to support maritime defense needs well into the 21st century. About Huntington Ingalls Industries Huntington Ingalls Industries is America's largest military shipbuilding company and a provider of professional services to partners in government and industry. For more than a century, HII's Newport News and Ingalls shipbuilding divisions in Virginia and Mississippi have built more ships in more ship classes than any other U.S. naval shipbuilder. HII's Technical Solutions division supports national security missions around the globe with unmanned systems, defense and federal solutions, nuclear and environmental services, and fleet sustainment. Headquartered in Newport News, Virginia, HII employs more than 42,000 people operating both domestically and internationally. For more information, visit: HII on the web: www.huntingtoningalls.com HII on Facebook: www.facebook.com/HuntingtonIngallsIndustries HII on Twitter: www.twitter.com/hiindustries HII on Instagram: https://www.instagram.com/huntingtoningalls/ Statements in this release, as well as other statements we may make from time to time, other than statements of historical fact, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed in these statements. Factors that may cause such differences include: changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); our ability to estimate our future contract costs and perform our contracts effectively; changes in procurement processes and government regulations and our ability to comply with such requirements; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; natural and environmental disasters and political instability; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures, and strategic acquisitions; adverse economic conditions in the United States and globally; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; and other risk factors discussed in our filings with the U.S. Securities and Exchange Commission. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make. CONTACT INFORMATION Teckie Hinkebein Manager of Media Relations (228) 935-1323 teckie.hinkebein@hii-co.com View source version on Huntington Ingalls Industries: https://newsroom.huntingtoningalls.com/releases/huntington-ingalls-industries-awarded-936-million-contract-to-build-navy-destroyer

Taufkirchen, July 1, 2020 – Sensor system supplier HENSOLDT has been awarded a contract by Airbus Defence and Space to develop and produce a new AESA (= Active Electronic Scanning Array) radar for the German and Spanish Eurofighter fleets. The project is jointly financed by the Eurofighter partner nations Spain and Germany, who will also be the first users of the radar in their fleets. Following budget approval by the Spanish government and most recently by the German Bundestag in mid-June, the contracts worth over 1.5 billion euros have now been signed. "The fact that Germany and Spain are taking a pioneering role in the modernization of the Eurofighter is a signal of confidence in European defense cooperation," said HENSOLDT CEO Thomas Müller. "This decision ensures that our armed forces will continue to be able to fulfill their mission in the future while being protected in the best possible way." The contracts cover the German-Spanish new development of core components of the Eurofighter radar – including a digital multi-channel receiver and transmitter/receiver modules of the antenna – and the equipping of approximately 130 Eurofighter aircraft of tranches two and three. The development is being carried out by a Spanish-German industrial consortium under German leadership with the support of the Eurofighter nations Great Britain and Italy. HENSOLDT has already been involved in the development and production of the Eurofighter sensor technology currently in use. At its radar centre in Ulm, HENSOLDT currently employs 2,200 people, and in the Eurofighter radar sector alone, the company expects to create 400 highly qualified jobs over the entire programme period. The sensor specialist is also investing around 15 million euros in the necessary capacity expansion, primarily at the Ulm site. About HENSOLDT HENSOLDT is a pioneer of technology and innovation in the field of defence and security electronics. Based in Taufkirchen near Munich, the company is a German Champion with strategic leadership positions in the field of sensor solutions for defence and non-defence applications. HENSOLDT develops new products to combat a wide range of threats based on innovative approaches to data management, robotics and cyber security. With approximately 5,500 employees, HENSOLDT generated revenues of 1.14 billion euros in 2019. www.hensoldt.net Press contact Joachim Schranzhofer Tel.: +49 (0) 89.51518.1823 joachim.schranzhofer@hensoldt.net View source version on HENSOLDT: https://www.hensoldt.net/news/hensoldt-leads-new-radar-consortium/