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David Axe The United Kingdom is spending nearly $8 billion building two new large, conventionally-fueled aircraft carriers and equipping them with F-35B Lightning II stealth jump jets. HMS Queen Elizabeth is scheduled to deploy for the first time in 2021, ending a seven-year carrier gap that began in 2014 when the Royal Navy decommissioned the last of its three, Cold War-vintage light carriers. The U.K. military by then had already sold off the carriers' Harrier jump jets. Queen Elizabeth and her sister Prince of Wales are impressive vessels. More than 930 feet long and displacing around 70,000 tons, they are bigger and more modern than every other flattop in the world except the U.S. Navy's 11 nuclear-powered supercarriers. The carriers in theory are the steely core of a revitalized and reorganized Royal Navy. “Carrier strike provides the ability to launch fixed-wing aircraft from a ship to undertake a range of military tasks,” the U.K. National Audit Office explained in a June report. “It is central to the government's plans for the country's armed forces.” But there's a problem. Having blown billions of dollars building the ships, the U.K. government no longer can afford the aircraft, escorts and support ships that help the flattops deploy, protect them and give them striking power. Nor can the government afford to modify Queen Elizabeth or Prince of Wales to support amphibious landings, one of the early justifications for cutting existing ships—such as the assault ship HMS Ocean—in order to free up money for the carriers. The new British carrier force is hollow. And at least one analyst believes the Brits would have been better off without. The shortfalls are myriad, according to the NAO. The carriers' air wings at a minimum should include a dozen F-35Bs plus a dozen Merlin helicopters, some of which would carry the Lockheed Martin LMT-made Crowsnest early-warning radar in order to provide sensor coverage over the carrier group. Guess what. “The new Crowsnest system is 18 months late, which will affect carrier strike's capabilities in its first two years,” according to the NAO. “The [Ministry of Defense] did not oversee its contract with Lockheed Martin effectively and, despite earlier problems on the project, neither was aware of the sub-contractor's lack of progress until it was too late to meet the target delivery date.” “It subsequently concluded that the sub-contractor working on the project, Thales, failed to meet its contractual commitments to develop the equipment and had not provided sufficient information on the project's progress. The [ministry] and its industry partners have since implemented a recovery plan and enhanced monitoring arrangements. However, further delays mean that it does not expect to have full airborne radar capability until May 2023.” Meanwhile, the ministry also has been slow to buy F-35s. “From 2015, its intention has been to buy 138 Lightning II jets, which will sustain carrier strike operations to the 2060s. The [ministry] initially ordered 48 jets but has not yet committed to buying any more. In response to wider financial pressures, it will also receive seven of the 48 jets in 2025, a year later than planned.” A single Queen Elizabeth-class flattop could carry as many as 24 F-35s. But a total force of 48 F-35s probably wouldn't allow for a 24-plane air wing after taking into account training and maintenance needs. As a rule, usually no more than third of a particular fighter fleet can deploy at any given time. Equally vexing, the Royal Navy has laid up all but one of its solid support ships, which sail along with front-line vessels in order to keep them stocked with food, parts and weapons. The defense ministry “has long been aware that this will restrict the operational freedom of carrier strike but has not yet developed a solution,” the NAO warned. “In November 2019, the [ministry] stopped the competition to build three new support ships due to concerns about value for money. It believes this will delay the introduction of new ships by between 18 and 36 months, making it uncertain the first new ship will be operational before the existing support ship leaves service in 2028.” The list of shortfalls continues. A British carrier group at a minimum should include one frigate for anti-submarine protection plus a destroyer for air-defense. But the Royal Navy operates just 13 aging Type 23 frigates and six Type 45 destroyers. The former are slated to leave the fleet starting in 2023. Their replacement, the new Type 26, won't start joining the fleet until 2027. The navy expects to buy just eight Type 26s. At least five new Type 31 frigates will replace the balance of the Type 23 force, but the Type 31s lack major anti-submarine systems. All that is to say that, from the mid-2020s on, the carriers could be vulnerable to submarines. Don't expect some sudden cash windfall to save the Royal Navy from its carrier problems. If anything, the budgetary problems could get worse. The defense ministry already is cutting back on its investment in Queen Elizabeth and Prince of Wales. The government had planned to spend $75 million modifying one of the new flattops with extra accommodations in order for the ship to double as an amphibious assault ship. But according to the NAO, the ministry in March 2020 quietly dropped the amphibious requirement. The bitter irony for the navy is that it sacrificed the assault ship Ocean back in 2018 in order to free up money and manpower for the carriers and eventually claw back the lost amphibious capability by way of modifications to at least one of the newer ships. Now it appears the fleet gave up Ocean for nothing. So are the new flattops worth it? As costs rise and budgets shrink, the carriers gobble up a growing proportion of the Royal Navy's resources while at the same time falling far short of their operational potential owing to cuts at the margins of their capabilities. “Given that what the Royal Navy has become in return for its two carriers, and given how at present this investment has delivered a part-time carrier force with a small number of available fast jets, significant spares shortages, reduced escort fleet numbers and a lack of longer-term support ships or escort elements,” one commentator wrote, “then perhaps the answer to the question ‘was it all worth it' is ‘no, it was not worth the pain for the gain'—at least not in the short term.” https://www.forbes.com/sites/davidaxe/2020/06/28/britain-spent-so-much-on-two-giant-aircraft-carriers-it-cant-afford-planes-or-escorts/#7988b615bcc7

NAVY Huntington Ingalls Inc., Pascagoula, Mississippi, is awarded a $936,032,309 fixed-price-incentive-firm-target modification to previously awarded contract N00024-18-C-2307 to exercise the fiscal 2020 option for the construction of a USS Arleigh Burke DDG-51 class ship (DDG 135). This modification also includes options for engineering change proposals, design budgeting requirements and post-delivery availabilities on the fiscal 2020 option ship. If exercised, the cumulative value of the fiscal 2020 option ship will increase to $947,695,871. Work will be performed in Pascagoula, Mississippi (91%); Erie, Pennsylvania (1%); and other locations below 1% (collectively totaling 8%), and is expected to be completed by June 2027. Fiscal 2019 and 2020 shipbuilding and conversion (Navy) funding in the amount of $926,032,309 will be obligated at the 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. Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $360,800,000 not-to-exceed undefinitized contract modification (P00038) to previously awarded fixed-price-incentive-firm-target contract N00019-17-C-0001. This modification provides for the procurement of four F-35C Carrier Variant Lot 14 aircraft for the Navy. Work will be performed in Fort Worth, Texas (63%); El Segundo, California (14%); Warton, United Kingdom (9%); Orlando, Florida (4%); Nashua, New Hampshire (3%); Baltimore, Maryland (3%); San Diego, California (2%); various locations within the continental U.S. (1.3%); and various locations outside the continental U.S. (0.7%). Work is expected to be completed by May 2023. Fiscal 2020 aircraft procurement (Navy) funds for $170,000,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $67,690,000 not-to-exceed modification (P00004) to previously awarded fixed-price-incentive-firm-target advance acquisition contract N00019-20-C-0009. This modification procures long lead materials, parts, components and support necessary to maintain on-time production and delivery of nine lot 16 F-35A Lightning II aircraft for the government of The Netherlands, as well as seven F-35A semiconductors and two F-35B Lightning II aircraft for the government of Italy. Work will be performed in Cameri, Italy (24%); Fort Worth, Texas (22%); El Segundo, California (11%); Warton, United Kingdom (7%); Baltimore, Maryland (4%); Nashua, New Hampshire (3%); San Diego, California (2%); various locations within the continental U.S. (21%); and various locations outside the continental U.S. (6%). Work is expected to be completed by May 2025. Non-Department of Defense participant funds in the amount of $67,690,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Applied Systems Engineering, Niceville, Florida, is awarded a $48,640,357 indefinite- delivery/indefinite-quantity, firm-fixed-price delivery orders contract with a five-year ordering period to provide Selective Availability Anti-Spoofing Module (SAASM) Advanced Tactical Navigator (ATACNAV) units, SAASM ATACNAV-High Accuracy (HA) units, SAASM ATACNAV-HA-Single Enclosure. ATACNAV mini purchases, ATACNAV units, reconfigurable avionics test sets and global positioning system military code receivers. In addition to procurement of ATACNAV units, system upgrades and repairs from Applied Systems Engineering will be required throughout the life of the contract. The program is in support of the Weapons Control and Integration Department (H) of the Naval Surface Warfare Center, Dahlgren Division and Battle Management Systems Program. This contract does not include options. Work will be performed in Niceville, Florida, and is expected to be completed by June 2025. Fiscal 2018 procurement defense agencies funding in the amount of $692,493 will be obligated on the first delivery order at the time of award and will not expire at the end of the current fiscal year. This contract was procured sole-source in accordance with 10 U.S. Code 2304c1, with one responsible source. The Naval Surface Warfare Center, Dahlgren Division, Dahlgren, Virginia, is the contracting activity (N00178-20-D-4400). IAP World Services Inc., Cape Canaveral, Florida, is awarded a $13,586,127 firm-fixed-price modification to increase the maximum dollar value of an indefinite delivery/indefinite quantity contract for the exercise of an option for base operating support services at the Naval Air Station Patuxent River. After award of this option, the total cumulative contract value will be $119,645,912. Work will be performed in Patuxent River, Maryland. The work to be performed provides for recurring and non-recurring facility maintenance; facility investment; integrated solid waste management; swimming pool; wastewater; water; and environmental management. Work is expected to be completed by December 2020. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $13,586,127 are obligated on this award and will not expire at the end of the current fiscal year. This award is issued under Federal Acquisition Regulation Part 6.302-2, “Unusually and Compelling Urgency.” The purpose of this modification is to ensure critical services continue as the agency responds to a post-award protest on the re-procurement of this contract. A total funding amount of $8,808,011 will be obligated at the time of award. The Naval Facilities Engineering Command, Washington, D.C., is the contracting activity (N40080-14-D-0302). Lockheed Martin Corp., Fort Worth, Texas, is awarded an $11,610,581 firm-fixed-price order (N00019-20-F-0022) against previously issued basic ordering agreement N00019-19-G-0008. This order procures intel diminishing manufacturing sources parts that have reached end of life in support of the F-35 Lightning II Program future aircraft deliveries for the Air Force, Navy, Foreign Military Sales customers and non-Department of Defense (DOD) participants. Work will be performed in Fort Worth, Texas, and is expected to be completed by October 2020. Fiscal 2018 aircraft procurement (Air Force) funds in the amount of $2,356,880; fiscal 2018 aircraft procurement (Navy) funds in the amount of $2,056,717; fiscal 2020 aircraft procurement (Air Force) funds in the amount of $1,619,315; fiscal 2020 aircraft procurement (Navy) funds in the amount of $631,782; non-DOD participant funds in the amount of $3,982,886; and Foreign Military Sales funds in the amount of $963,001, will be obligated at time of award, $4,413,597 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Northrop Grumman Systems Corp., Herndon, Virginia, is awarded a $9,528,561 modification (P00028) to previously awarded firm-fixed-price contract N00019-17-C-0009. This modification provides for the installation of the multi-role tactical common data link into two E-6B Mercury aircraft. Work will be performed in San Diego, California (56%); and Lake Charles, Louisiana (44%), and is expected to be completed by October 2021. Fiscal 2020 aircraft procurement (Navy) funds for $9,528,561 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. AREPII SA Hotel LLC, doing business as Sheraton Atlanta Hotel, Atlanta, Georgia, is awarded an $8,139,274 firm-fixed-price, three-month contract for lodging, meal and laundry services. This contract includes one three-month option period which, if exercised, will bring the cumulative value of this contract to $15,970,741. Work will be performed in Atlanta, Georgia. Work is expected to be completed October 2020. If all options are exercised, work will continue through January 2021. Fiscal 2020 military personnel (Marine Corps) funds in the amount of $8,139,274 will be obligated at the time of award and will expire at the end of the current fiscal year. This contract was competitively procured via the beta.SAM.gov website and 23 proposals were received. The Regional Contracting Office, Parris Island, South Carolina, is the contracting activity for (M00263-20-C-0001). ARMY Sharp Minds LLC,* Alexandria, Virginia, was awarded a $473,021,064 hybrid (firm-fixed-price and time-and-materials) contract to provide Letterkenny Army Depot with labor support. Bids were solicited via the internet with five received. Work will be performed in Chambersburg, Pennsylvania, with an estimated completion date of Jan. 31, 2026. Fiscal 2020 Army working capital funds in the amount of $26,577,042 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W911N2-20-F-0494). Raytheon/Lockheed Martin Javelin JV, Tucson, Arizona, was awarded a $25,408,756 modification (P00353) to contract W31P4Q-04-C-0046 for support services for the Javelin weapon system. Work will be performed in Tucson, Arizona, with an estimated completion date of June 30, 2025. Fiscal 2020 Foreign Military Sales (United Kingdom) funds in the amount of $25,408,756 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. General Dynamics Mission Systems, Taunton, Massachusetts, was awarded a $19,298,469 cost-plus-fixed-fee contract to procure engineering and testing contractor support services. Bids were solicited via the internet with one received. Work will be performed in Taunton, Massachusetts, with an estimated completion date of June 30, 2021. Fiscal 2018 and 2020 other procurement (Army) funds in the amount of $19,298,469 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W15P7T-20-F-0159). Welch Construction Inc.,* Marcellus, New York, was awarded a $15,000,000 firm-fixed-price contract for repair and construction of real property facilities at Watervliet Arsenal, New York. Bids were solicited via the internet with four received. Work locations and funding will be determined with each order, with an estimated completion date of June 21, 2025. U.S. Army Corps of Engineers, New York, New York, is the contracting activity (W912DS-20-D-0005). Skookum Educational Programs, Bremerton, Washington, was awarded a $9,971,669 firm-fixed-price contract for inspection, testing and maintenance work; demand maintenance order work; and preventative maintenance order work and sustainment, restoration and modernization services in support of Fort Riley. Bids were solicited via the internet with one received. Work will be performed at Fort Riley, Kansas, with an estimated completion date of June 28, 2021. Fiscal 2020 operations and maintenance funds in the amount of $3,500,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity (W912DY-20-C-0026). Techwerks LLC,* Arlington Heights, Illinois, was awarded an $8,685,042 modification (P00024) to contract W911QY-17-C-0101 for labor, other direct costs and travel in support of the Walter Reed Army Institute of Research. Work will be performed in Arlington Heights, Illinois, with an estimated completion date of July 1, 2021. Fiscal 2020 research, development, test and evaluation (Army) funds in the amount of $178,340 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. Ross Island Sand & Gravel Co., Portland, Oregon, was awarded an $8,362,290 firm-fixed-price contract for annual maintenance dredging of the Stockton Deep Water Ship Channel. Bids were solicited via the internet with three received. Work will be performed in Stockton, California, with an estimated completion date of Nov. 30, 2020. Fiscal 2020 civil operations and maintenance funds in the amount of $8,362,290 were obligated at the time of the award. U.S. Army Corps of Engineers, San Francisco, California, is the contracting activity (W912P7-20-C-0009). AIR FORCE Georgia Tech Applied Research Corp., Atlanta, Georgia, has been awarded a $22,562,480 cost-plus-fixed-fee modification (P00008) to contract FA8523-18-C-0002 for reactivation of the Band 8 transmitter associated with the AN/ALQ-161A defensive avionics system supporting the B-1B aircraft. The contract modification is for the delivery of a Band 8 reactivation fleet-wide implementation plan. Work will be performed in Atlanta, Georgia, and is expected to be completed June 29, 2022. This award is the result of a sole-source acquisition. Fiscal 2020 operations and maintenance funds in the full amount are being obligated at the time of award. The Electronic Warfare Contracting Branch, Robins Air Force Base, Georgia, is the contracting activity. Spartan Air Academy Iraq LLC, Irving, Texas, has been awarded a $14,769,952 firm-fixed-price modification (P00006) to contract FA8617-20-C-6232 for the Iraq T-6A contractor logistics support and training maintenance program. The modification provides for the exercise of an option to extend the term of the contract for the continued services needed in order to effectively maintain and operate a fleet of 15 T-6A training aircraft. Work will be performed at Balad Air Base, Iraq, and is expected to be completed Dec. 31, 2020. This modification involves 100% Foreign Military Sales (FMS) to Iraq. FMS funds in the full amount will be obligated at the time of award. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. Lockheed Martin Corp., Colorado Springs, Colorado, has been awarded a $7,038,279 firmed-fixed-price contract with some cost-plus-fixed-fee and cost-reimbursable contract line item numbers for follow-on support sustainment of the Republic of Korea Peace Krypton Program. This contract provides for support of the field service representatives, program management, core/field engineering, System Depot Support Facility sustainment, technical manuals sustainment and obsolescence management. Work will be performed in Colorado Springs, Colorado; and Seoul, Republic of Korea, and is expected to be completed Dec. 31, 2020. This contract involves Foreign Military Sales (FMS) to Republic of Korea and is the result of a sole-source acquisition. FMS funds in the full amount are being obligated at the time of the award. The Air Force Life Cycle Management Center, Wright‐Patterson Air Force Base, Ohio, is the contracting activity. (FA8620‐20-C-3099). DEFENSE LOGISTICS AGENCY Jamaica Bearings,* New Hyde Park, New York, has been awarded a maximum $18,230,335 firm-fixed-price contract for wire ring race kits. This is an 18-month contract with a one-year option period. This was a competitive acquisition with one offer received. Locations of performance are South Carolina and New York, with a Dec. 17, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-20-C-0034). U.S. SPECIAL OPERATIONS COMMAND CORRECTION: The contract announced on June 26, 2020, to Arcticom LLC, Anchorage, Alaska (H92240-20-C-0004), for $18,772,155, was announced with an incorrect award date. The correct award date is June 29, 2020. *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2241727/source/GovDelivery/

Les forces aériennes gendarmerie (FAG) acquerront dix hélicoptères H160 et deviendront ainsi les premiers opérateurs étatiques de l'appareil, après les marins français, qui utiliseront quatre H160 loués. Air & Cosmos du 29 juin 2020

Safran Helicopter Engines vient de remporter un contrat pluriannuel avec l'armée de l'Air royale néerlandaise pour la maintenance des moteurs Makila équipant sa flotte d'hélicoptères Airbus Helicopters AS532U2 Cougar Mk.II. À la suite d'un appel d'offres public, le contrat officialise un accord de maintenance, de réparation et de révision portant sur 40 moteurs Makila 1A2, jusqu'à leur fin de vie. Air & Cosmos du 29 juin 2020

Le premier avion ravitailleur MRTT (Multi Role Tanker Transport, avion militaire de transport et de ravitaillement en français) doit s'envoler ce 30 juin pour la base militaire d'Eindhoven, aux Pays-Bas, depuis l'usine d'Airbus de Getafe, en Espagne. Sous l'égide de l'OTAN il s'agit du premier appareil sur les huit commandés dans le cadre du programme MMF (Multinational MRTT Fleet initiative, en français, l'initiative de ravitaillement en vol) réunissant six pays européens (Allemagne, Pays-Bas, Luxembourg, Belgique, Norvège et République Tchèque). Le contrat, qui lie Airbus Defence and Space et les pays initiateurs du MMF depuis 2016, prévoit la livraison des sept autres appareils d'ici 2024, avec des options portant sur trois appareils supplémentaires. L'Usine Nouvelle du 29 juin 2020

By Adil Khan, Jim Adams and Steve Beckey Forbes; KPMG Contributor Jun 23, 2020 The current economic disruption—coming on the heels of the 737MAX suspension—has varying impact across A&D segments. The impact on commercial aerospace has been immediate and extensive, while the defense sector has largely remained unscathed. However, it is hard to see how it will remain so, given the extensive fiscal measures being taken. What will this mean for M&A in A&D? Some trends are beginning to emerge that will affect the entire deal life-cycle (from deal strategy through integration and value creation). Yet, as in other times of economic disruption, new opportunities will emerge, which leads us to believe that the slowdown of M&A activity will be short-lived. As we enter this next phase, deal makers who adapt quickly to the realities of the new industry landscape could be well positioned to maximize value. Pre COVID-19 environment Not too long ago, commercial aerospace was booming, with year-over-year ramp ups in build rates and record backlogs. There were expectations of another golden decade — further extending the unprecedented 14-year “super up-cycle”, defying the long-standing cyclicality of the sector. However, in 2019, the historic correlation between GDP, air-traffic growth, carrier profitability, orders and build rates was suddenly disrupted. GDP and airline profitability levels remained relatively healthy, but new orders and build rates dropped as the industry grappled with the 737MAX shock, as well as a slowdown in the twin-aisle segment. Other undercurrents also emerged — slowdowns in world trade from escalating tariff tensions, weakness in high-growth geographic markets such as China and India, and declining consumer confidence. In contrast, U.S. defense spending was on the rise, averaging 4 percent1 annual growth over the past 5 fiscal years; the $738 billion FY2020 defense bill2 ensured this momentum would continue. The government services sector was also set to benefit from continued funding increases to modernize IT infrastructure and address evolving national security challenges. With general confidence in the long-term fundamentals of the sector and a favorable budgetary environment, players in certain A&D segments pursued M&A to build scale. Others “re-realized” that content matters and initiated vertical and horizontal integration strategies to capture more value and drive cost competitiveness, or acquired targeted niche capabilities and emerging technologies. We also saw the emergence of Super Tier I's through scale-driving consolidation aimed at broadening capabilities and potentially exerting greater influence on OEMs. Deal volume in the A&D sector reached record levels — almost doubling over the last 5 years and outpacing the broader M&A market by 40 percent.3 Valuations remained elevated on the strength of high bidder interest, limited supply of attractive assets, high A&D stock valuations (which outperformed the S&P 500 by 8 percent),4 as well as healthy balance sheets and strong cash positions. TEV/EBITDA multiples for A&D transactions averaged 11x,5 outpacing increases in the overall M&A market. Although, deal volumes moderated in the second half of 2019, amid elevated uncertainty about defense spending heading into a presidential election year, the overall outlook remained optimistic. COVID-19 impact COVID-19 caused a precipitous collapse in air traffic. With travel restrictions and stay-at-home orders, carriers around the globe made unprecedented cuts to capacity, idled fleets, and began deferring or canceling new aircraft deliveries. Also, the MRO (maintenance, repair, and overhaul) and aftermarket segments, which had benefited from the prolonged 737MAX grounding and high fleet utilization, suddenly faced stiff headwinds. Thus far, the defense industrial base has not experienced a COVID-19 demand shock. There is no noticeable disruption in appropriations or major delays and cancellation of military programs. However, as in the commercial sector, defense contractors are actively monitoring their supply base and taking steps to preserve liquidity, minimize supply chain disruption, and taking measures to comply with CDC and local government guidelines. The range of scenarios for defense spending is bookended by two scenarios: an elevated national security threat that would preserve or accelerate funding, or a reordering of budget priorities to fund social and other mandatory programs, resulting in sequestration-type measures, similar to 2011. With these developments, volatility in the financial markets, lack of access to financing, alternative more pressing liquidity needs by corporates and most importantly, uncertainty in the marketplace, deal flow in A&D has come to an immediate standstill. Several “in-flight” processes have been halted, new deals in the pipeline have been deferred, and even some announced transactions terminated. Access to the new public offering market is effectively closed. The gap in expected valuations between buyers and sellers has widened considerably, due to disparate perceptions of the extent of economic disruption caused by COVID-19; contrasting views on reopening of the economy and the pace of return to normal; and diverse perspectives on what the post-COVID-19 new reality looks like. This has rendered financial forecasts and pre-COVID-19 market perspectives obsolete. Further, the extent and nature of unusual and non-recurring events6 impacting financials, present considerable challenges for deal makers to form a credible view of normalized earnings and cash flows. With the lack of reliable projections, it is nearly impossible to form a credible view on valuations let alone bridge this gap. Additionally, although M&A teams have attempted to navigate through practical challenges with offsite due diligence, virtual facility tours, video conferences, etc., adapting to a virtual M&A environment, especially for cross-border deals, has been challenging. Developments to watch as economies reopen Given the health concerns, changes in social behaviors (some of which may be slow to reverse) and anticipated lead-time to an effective vaccine, a V-shape recovery in air traffic appears increasingly unlikely. As governments move from combating coronavirus to reopening economies, the pace and extent of the economic recovery is expected to vary significantly around the world. Further, some long-lasting or permanent developments may trigger some dramatic shifts in the sector: KPMG Implications for M&A trends and outlook KPMG Although we probably do not expect to see M&A activity return to the pre-crisis levels immediately, we expect M&A activity to drive realignment of the industry landscape in the post COVID-19 environment. Implications for M&A Capabilities As we enter the next phase, deal makers will need to adapt to the realities that impact how deals get done. Examples include: KPMG While the challenges are intimidating, the opportunities will be vast, and those who move quickly and decisively are likely to be rewarded for years to come. Those who take this unique opportunity to prepare and are ready to act will stand ready to reshape the A&D industry. 1. 2019 DoD Comptroller Data (Green Book) 2. Department of Defense 3. CapIQ, Institute for Mergers, Acquisitions, and Alliances 4. Year return, S&P A&D index vs S&P 500 5. Trailing 12-month average to June 2019 and avg. 16x for deals >$500M in value; CapIQ, Dacis Company reports and Press releases 6 Worker furloughs, facility shut-downs, loss of business or order cancellation, idled or underutilized facilities, CARES Act funding, changes to performance-based compensation structures or payouts, health and sanitization related measures, IT infrastructure investments to adapt to remote working environment, deferral of payroll taxes, carryback of NOLs, increased interest expense tax deduction, etc KPMG Contributor

Murray Brewster · CBC News · Posted: Jun 25, 2020 5:03 PM ET | Last Updated: June 26 One of the companies bidding to sell Canada a new fleet of fighter jets made a public pitch today highlighting its long-standing, cross-country economic relationships and history of delivering high-paying aerospace jobs. The presentation by Boeing executives and an independent research firm arrives against a background of a pandemic-ravaged economy and a looming federal deadline to submit bids to replace the air force's aging CF-18 fleet. The aerospace giant, headquartered in Chicago, Ill., is one of three companies that will hand in their final submissions at the end of July with the aim of delivering new jets by 2025. The other two are Lockheed Martin — with its F-35 stealth jet — and Saab, which will offer up the latest version of its Gripen fighter. Boeing plans to pitch its Super Hornet fighter. The most up-to-date version of the jet, known as the Block 3, was delivered recently to the U.S. Navy for use on aircraft carriers. In its presentation, the company estimates the value of its direct economic activity in Canada — both commercial and defence — at $2.3 billion, resulting in 11,000 jobs across the country. The independent report estimates that when indirect spending is taken into account, the U.S. multinational contributes $5.3 billion and 20,700 jobs to Canada's economy. Boeing's decision to make its case publicly is significant in part because federal finances are reeling under the weight of an anticipated $252 billion deficit and staggering levels of unemployment brought on by the COVID-19 pandemic. Defence spending tends to suffer whenever federal governments — regardless of their political stripes — grapple with high deficits. There has been bad blood between the Liberal government and Boeing ever since the U.S. company led the charge against Quebec aerospace manufacturer Bombardier in a trade complaint over passenger jets. The disagreement led to the federal government cancelling a planned sole-source order for a handful of Super Hornets as an interim arrangement while the replacement competition continued. The U.S. Navy, one of Boeing's biggest customers for fighter jets, recently said it wanted to begin focusing on a replacement for the Super Hornet, which was designed and entered service in the early 2000s. Jim Barnes, a senior Boeing executive, told a conference call of reporters on Thursday that there is no planned retirement date for the Super Hornet. He claimed the warplane offers the most economical solution for Canada in terms of the cost of flying and operating fighter aircraft. He said he foresaw the fighter being in service with the U.S. Navy for "decades to come." The company's argument was recently given a boost when Germany decided to buy 45 Super Hornets as a replacement for its Tornado fighters. The deadline for final submissions in Canada's competition is now July 31, after it was pushed back on at least two occasions. Barnes said Boeing is ready to submit and will meet the deadline. He acknowledged the company asked for the latest extension because of the pandemic. https://www.cbc.ca/news/politics/boeing-jet-fighters-cf18-1.5627353

By Flight International 26 June 2020 For some, a time of global economic crisis might not feel like the perfect moment for nations to invest huge sums of money to develop a new class of combat aircraft only due to enter use around 2035-2040. Currently, six European governments and their national defence industry champions are involved in the early phases of two competing – and comparable – projects to deliver such a capability. In the opinion of Airbus Defence & Space chief executive Dirk Hoke, Europe's current trio of advanced fighters – the Dassault Rafale, Eurofighter Typhoon and Saab Gripen – represent a wasteful replication of industrial effort – and all lose out by battling for the same orders. Hoke is championing a future combat air system (FCAS) project now combining the resources and know-how of French and German industry, and also later incorporating Spain. With its Tempest development having drawn interest from Italy and Sweden, the UK is not only turning away from its co-operation with Germany and Spain on Eurofighter, but applying the afterburners on their separation. Key players behind both efforts are united in their calls to “avoid the mistakes of the past”. For some, that refers to compromised yet complex requirements, sprawling manufacturing and final assembly arrangements, and political interference during export activities, while for others, a simple lack of harmony was at fault. Getting everyone to agree that having multiple final assembly lines for a fighter with a comparatively small production volume is an inefficient luxury is one thing – agreeing which will lose the strategic capability is quite another. International partnering spreads a programme's investment burden, but elements of the Eurofighter set-up and the Airbus Defence & Space A400M airlifter serve as cautionary tales. Three can be a crowd, but a lack of agreement among four or seven involved nations can cause lengthy delay and spiralling costs. Surely Europe can comfortably support two next-generation combat aircraft programmes? Indeed, those involved in FCAS and Tempest eye them as offering a real opportunity to power part of their nations' economic recovery in the post-coronavirus era. For an alternative view should the projects eventually have to merge, a unified solution could serve all 27 EU member states, plus the UK. Such a prospect could make the US-led Lockheed Martin F-35 programme look like a bureaucratic cakewalk by comparison. https://www.flightglobal.com/defence/can-tempest-and-fcas-projects-both-succeed-in-europe/139007.article

MISSILE DEFENSE AGENCY Raytheon Integrated Defense Systems, Woburn, Massachusetts, is being awarded a sole-source contract in the amount of $2,271,181,543 under the Foreign Military Sales (FMS) program to the Kingdom of Saudi Arabia (KSA). The contract type will be a hybrid firm-fixed-price, fixed-price-incentive-fee, cost-plus-award-fee and cost-plus-incentive-fee contract. Under this production contract, the contractor will provide seven Army/Navy Transportable Surveillance and Control Model 2 radars, radar spares, obsolescence design, sustainment services and initial contractor logistics support for KSA. The work will be performed in Woburn, Massachusetts. The performance period is June 26, 2020, to Aug. 31, 2027. KSA FMS funds in the amount of $2,271,181,543 will be used to fund this effort. The Missile Defense Agency, Redstone Arsenal, Alabama, is the contracting activity (HQ0862-20-C-0002). AIR FORCE L3 Technologies Inc., Arlington, Texas, has been awarded a $900,000,000 ceiling, indefinite-delivery/indefinite-quantity contract for simulator common architecture requirements and standards (SCARS). This contract provides for the definition, design, delivery, deployment and sustainment of a simulator common architecture across the Air Force's training portfolio, along with the creation of a security operations center and library and the execution of SCARS management services. The SCARS initiative will also incrementally implement a modular open systems approach, as well as a set of common standards for Air Force simulators. The primary location of performance is Orlando, Florida. SCARS has a 10-year ordering period through June 2030. This award is the result of a competitive acquisition and six offers were received. Fiscal 2020 other procurement funds in the amount of $1,216,598; and fiscal 2020 operations and maintenance funds in the amount of $14,278,992 are being obligated under the first task order. The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8621-20-D-0013). Northrop Grumman Systems Corp., Azusa, California, has been awarded a $222,507,873 cost-plus-fixed-fee contract for the Defense Support Program (DSP) Operations, Mission Threat Analysis and Engineering Sustainment (DOMES). This contract provides on-orbit satellite and anomaly resolution support, root cause analysis, mission threat analysis, mission test bed and space awareness and global exploitation as key components of the lifetime extension of the DSP. Work will be performed in Azusa, California; Redondo Beach, California; Aurora, Colorado; and Colorado Springs, Colorado, and is expected to be completed March 31, 2030. Fiscal 2020 operations and maintenance funds in the amount of $18,000,000 is being obligated at the time of award. Space and Missile Systems Center, Peterson Air Force Base, Colorado, is the contracting activity (FA8823-20-C-0002). VectorCSP LLC, Elizabeth City, North Carolina, has been awarded a $16,286,599 firm-fixed-price contract for Combat Air Force (CAF) Fighter Squadron (FS), U.S. Air Force Warfare Center (USAFWC) and Air Support Operations Squadron (ASOS) support services to Air Combat Command. This contract provides in-garrison active fighter squadron's functional support for typical additional duties assigned to squadron personnel, such as operations scheduling, training, standards and evaluations, weapons and tactics, mobility, non-aviation programs and readiness, equipment managers and armorer support. Work will be performed at various locations throughout USAFWCs, ASOSs and CAFs in the U.S., and is expected to be completed June 25, 2025. This award is the result of a competitive acquisition and seven offers were received. Fiscal 2020 operations and maintenance funds in the amount of $8,920,289 are being obligated at the time of award. Air Force Management and Integration Center, Joint Base Langley-Eustis, Virginia, is the contracting activity (FA4890-20-F-0048). Apogee Research LLC,* Arlington, Virginia, has been awarded a $13,398,315 cost-plus-fixed-fee completion type contract for SymLang, an invariant driven approach to software via symmetries and software. The objective of this effort includes developing novel software systems that enable automated adaptation of the resulting software system to radical changes in requirements and computational environments. SymLang, new programming language and its associated toolchain will allow for the rapid development and adaption of code that is efficient at run-time over a wide range of operating conditions. Work will be performed in Arlington, Virginia; Menlo Park, California; and Medford, Massachusetts, and is expected to be completed by June 26, 2024. This award is the result of a competitive acquisition and 20 offers were received. Fiscal 2019 research, development, test and evaluation funds in the amount of $766,404 are being obligated at the time of award. Air Force Research Laboratory, Rome, New York, is the contracting activity (FA8750-20-C-0520). GrammaTech Inc.,* Ithaca, New York, has been awarded a $12,220,510 cost-plus-fixed-fee completion contract for Artemis Framework prototype software. This contract provides for research, design, development, demonstration, test, integration and delivery of the Artemis Framework that will enable rapid adaptation of software to changes in requirements, platforms and computational resources at a scale and speed appropriate for the complex software ecosystem. Work will be performed in Ithaca, New York, and is expected to be completed June 26, 2024. This award is the result of a competitive acquisition and 20 offers were received. Fiscal 2019 research, development, test and evaluation funds in the amount of $750, 818 are being obligated at the time of award. Air Force Research Laboratory, Rome, New York, is the contracting activity (FA8750-20-C-0208). Raytheon Technologies, Woburn, Massachusetts, has been awarded a $9,223,822, firm-fixed-price modification (P00052) to contract FA8730-17-C-0010 for the Qatar Early Warning Radar (QEWR). This modification is for the construction of the communications infrastructure at the QEWR site. Work will be performed in Woburn, Massachusetts; and Qatar, and is expected to be completed by December 2020. The modification brings the total cumulative face value of the contract to $1,117,574,971. This modification involves 100% Foreign Military Sales (FMS) to the country of Qatar. FMS funds in the amount of $9,223,822 are being obligated at the time of award. Air Force Life Cycle Management Center, Hanscom Air Force Base, Massachusetts, is the contracting activity. ARMY JCB Inc., Pooler, Georgia, was awarded a $269,425,883 firm-fixed-price contract for electric over hydraulic High Mobility Engineer Excavators, related hardware and ancillary services. 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 June 23, 2028. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity (W56HZV-20-D-0084). GM Defense LLC, Detroit, Michigan, was awarded a $214,297,869 firm-fixed-price contract for acquisition of the Infantry Squad Vehicle, installation kits, ancillary hardware and logistical support. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of June 24, 2028. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity (W56HZV-20-D-0066). Walsh Federal LLC, Chicago, Illinois, was awarded a $38,027,000 firm-fixed-price contract for construction of an information system facility at Joint Base Lewis-McChord. Bids were solicited via the internet with two received. Work will be performed in Tacoma, Washington, with an estimated completion date of Dec. 31, 2022. Fiscal 2020 military construction (Army) funds in the amount of $38,027,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Seattle, Washington, is the contracting activity (W912DW-20-C-0007). KT Consulting, Phoenix, Arizona, was awarded a $12,235,930 firm-fixed-price contract for logistics research and analytic support. Bids were solicited via the internet with two received. Work will be performed in Washington, D.C., with an estimated completion date of Aug. 3, 2025. Fiscal 2020 operations and maintenance (Army) funds in the amount of $6,142,964 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-20-F-0465). GM Defense LLC, Detroit, Michigan, was awarded an $8,580,666 firm-fixed-price contract for initial delivery of Infantry Squad Vehicles and integrated product support. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of June 24, 2021. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity (W56HZV-20-D-0066). MCR Federal LLC, McLean, Virginia, was awarded an $8,579,438 modification (000127) to contract W31P4Q-16-A-0016 for technical engineering services in support of the Fixed Wing Project Office. Work will be performed in Huntsville, Alabama, with an estimated completion date of July 28, 2021. Fiscal 2020 operations and maintenance (Army) funds; and 2018 aircraft procurement (Army) funds in the amount of $8,579,438 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Northrop Grumman Systems Corp., McLean, Virginia, was awarded an $8,440,579 modification (P00019) to contract W15QKN-17-F-0006 to accelerate enhancements to the identity, credential and access management system, as well as continuation of the Army Knowledge Online enterprise services modernization. Bids were solicited via the internet with two received. Work locations and funding will be determined with each order, with an estimated completion date of March 26, 2021. U.S. Army Contracting Command, Newark, New Jersey, is the contracting activity. Aerovironment,* Monrovia, California, was awarded a $7,596,820 cost-plus-fixed-fee contract to exercise an option for repair, maintenance, training, flight support and field service representatives. Work will be performed in Simi Valley, California, with an estimated completion date of March 31, 2021. Fiscal 2020 operations and maintenance (Army) funds in the amount of $7,596,819 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-17-C-0171). NAVY Bath Iron Works, Bath, Maine, is awarded a $132,000,000 cost modification to previously awarded contract N00024-18-C-2305 to fund capital expenditure projects for shipbuilder and supplier industrial base efforts in support of the USS Arleigh Burke DDG-51 class destroyer program. This modification will fund shipbuilder and supplier base efforts to address supply chain fragility and to ensure future readiness for the fleet. Work will be performed in Bath, Maine, and is expected to be completed by June 2028. Fiscal 2013, fiscal 2018 and fiscal 2020 shipbuilding and conversion (Navy) funds in the amount of $132,000,000 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. Didlake Inc., Manassas, Virginia, is awarded a $62,116,404 indefinite-delivery/indefinite-quantity contract for annual custodial services at Norfolk Naval Shipyard (NNS) and annexes; the Portsmouth and Little Creek site; and the Naval Amphibious Base (NAB) Little Creek-Fort Story. Work will be performed in Virginia Beach, Virginia (75%); and Portsmouth, Virginia (25%). The work to be performed provides for annual custodial services, but is not limited to all management, supervision, tools, materials, supplies, labor and transportation services. They are necessary to perform custodial services for office space, restrooms and other types of rooms at the NNS and annexes, Portsmouth and Little Creek site and NAB Little Creek-Fort Story. Work is expected to be completed by June 2025. No funds will be obligated at time of award. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $12,128,835 for recurring and non-recurring work will be obligated on individual task orders issued during the base period. This contract was procured as a sole-source AbilityOne requirement. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-20-D-0055). Huntington Ingalls Inc., Pascagoula, Mississippi, is awarded a $62,000,000 cost modification to previously awarded contract N00024-18-C-2307 to fund capital expenditure projects for shipbuilding supplier industrial base efforts in support of the Arleigh Burke DDG 51 class destroyer program. This modification will fund supplier base efforts to address supply chain fragility that ensures future readiness for the fleet. Work will be performed in Pascagoula, Mississippi, and is expected to be completed by April 2029. Fiscal 2013 and fiscal 2014 shipbuilding and conversion (Navy) funding in the amount of $62,000,000 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. Baldi Bros Inc.,* Beaumont, California, is awarded a $50,630,423 firm-fixed-price task order N62473-20-F-4817 under a multiple award construction contract for the construction of a runway and taxiway extension at the Naval Air Weapons Station, China Lake, California. Work will be performed in Ridgecrest, California. The work to be performed provides for the construction of extending and widening of Runway 08/26, the construction of Taxiway H and two aircraft arrestor systems, the installation of taxiway lighting on Runway 03/21 and the storm drainage to support the runway and other incidental related work. The runway and taxiway extension project includes, but is not limited to demolition, earthwork, provide drainage, paving, arresting gear, two concrete pads, lighting, airfield signage, power circuitry and control circuitry. Work also provides temporary construction that includes a temporary water line, jersey barriers and access roadwork. Work is expected to be completed by April 2022. Fiscal 2020 military construction (Navy) contract funds in the amount of $50,630,423 are obligated on this award and will not expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity (N62473-19-D-2438). Huntington Ingalls Inc., Newport News, Virginia, is awarded a $22,791,081 cost-plus-fixed-fee modification to previously awarded contract N00024-18-C-4314 for the USS Boise (SSN 764) Smart Start that encompasses continued advance planning, execution services, production and availability preparations for fiscal 2020 USS Boise engineered overhaul. This contract modification includes options, which if exercised, will bring the cumulative value of this action to $22,999,003. Work will be performed in Newport News, Virginia. The contracted requirements also include continued advance planning, execution services, production and availability preparations necessary to repair and maintain unrestricted operation of the submarine. It also includes upgrades and modernization efforts required to ensure the submarine is operating at full technical capacity as defined in the availability work package during the chief of naval operation's scheduled availability. Work is expected to be completed by September 2020. Fiscal 2020 operations and maintenance funding in the amount of $22,791,081 will be obligated at time of award, and funding in the amount of $22,791,081 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Embree Machine Inc.,* Springville, Indiana (N00164-20-D-JN88); J&R Tool Inc.,* Loogootee, Indiana (N00164-20-D-JN89); Loughmiller Machine, Tool & Die,* Loogootee, Indiana (N00164-20-D-JN90); MSP Aviation Inc.,* Bloomington, Indiana (N00164-20-D-JN91); Specialty CNC Inc.,* Bloomington, Indiana (N00164-20-D-JN92); and United Support Solutions – LMT Inc.,* Cedar Grove, New Jersey (N00164-20-D-JN93), are awarded a $17,500,000 five-year, firm-fixed-price, indefinite-delivery/indefinite-quantity, multiple award contracts for build-to-print machined parts for military projects. These contracts includes options which may bring the cumulative value of each contract to $35,000,000, if exercised. Work will be performed at various locations across the U.S. based on each individual task order. These build-to-print machined parts are used for military projects including, but not limited to, the fixed forward firing weapons and interface unit automatic processor systems that are utilized on the MH-60R Seahawk and MH-60S Knighthawk helicopters. Work is expected to be completed by June 2025, or June 2030 if all options are exercised. Working capital funding of a $3,000 minimum contractual award for each vendor ($18,000 total) will be obligated at the time of award and will not expire at the end of the current fiscal year. This contract were competitively procured via the beta.SAM.gov website and 11 offers were received. The Naval Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity. Poole Fire Protection Inc.,* Olathe, Kansas, is awarded an $10,000,000 indefinite-delivery/indefinite-quantity architect-engineer contract for architect-engineer services for fire protection testing, inspection, studies and surveys at various locations in all areas under the cognizance of Naval Facilities Engineering Command (NAVFAC) Pacific. No task orders are being issued at this time. Work will be performed at various Navy, Marine Corps, Air Force and other government facilities within the NAVFAC Pacific area of operations including, but not limited to Guam and the Commonwealth of the Northern Marianas Islands (40%); Japan (40%); Australia (10%); and Diego Garcia (10%). The work to be performed provides for the following services final acceptance testing and inspection of all types of installed fire protection systems, fire protection and life safety studies, surveys and water flow testing. The term of the contract is not to exceed 60 months and work is expected to be complete by June 2025. Fiscal 2018 military construction (MILCON) (planning and design) contract funds in the amount of $10,000 are obligated on this award and will not expire at the end of the current fiscal year. Future task orders will be primarily funded by MILCON (planning and design). This contract was competitively procured via the Navy Electronic Commerce Online website and four proposals were received. The NAVFAC Pacific, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity (N62742-20-D-0005). DEFENSE LOGISTICS AGENCY U.S. Foods Inc., Port Orange, Florida, has been awarded a maximum $28,710,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for full-line food distribution. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a 262-day bridge contract with no option periods. Locations of performance are Florida; Cuba; and the Bahamas, with a Nov. 8, 2020, ordering period end date. Using military services are Army, Air Force, Navy and Marine Corps. Type of appropriation is fiscal 2020 and 2021 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-3279). Northrop Grumman Systems Corp., Melbourne, Florida, has been awarded a not-to-exceed $26,696,992 undefinitized delivery order (SPRPA1-20-F-M40H) against a five-year basic ordering agreement (SPE4A1-16-G-003Z) for aircraft rotodomes. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a five-year nine-month contract with no option periods. Location of performance is Florida, with a March 31, 2026, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2020 Navy working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. Merchants Foodservice, Hattiesburg, Mississippi, has been awarded a maximum $16,160,350 fixed-price with economic-price-adjustment, indefinite-quantity contract for full-line food distribution. This was a sole-source acquisition using justification 10 U.S. Code 2304(c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a 241-day bridge contract with no option periods. Locations of performance are Louisiana and Mississippi, with a Feb. 21, 2021, ordering period end date. Using military services are Army, Air Force, Navy and Marine Corps. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-3280). Fort Riley Utility Services Inc., Fort Riley, Kansas, has been awarded a maximum $9,461,376 modification (P00026) to a 50-year contract (SP0600-17-C-8328), with no option periods for water and wastewater utility services at Fort Riley, Kansas. This is a fixed-priced with economic-price-adjustment contract. This modification increases the obligated value from $33,267,059 to $34,393,260. Locations of performance are Kansas and California, with a June 30, 2068, performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 through 2068 Army operations and maintenance funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia. International Business Machines Corp., Reston, Virginia, has been awarded a maximum $7,635,577 modification (P00005) exercising the second one-year option period of a one-year base contract (SP4701-18-C-0048) with four one-year option periods for technical and functional services for the Defense Agencies Initiative. This is a firm-fixed-price, cost-plus-incentive-fee contract. Locations of performance are Virginia and other areas in the continental U.S., with a July 31, 2021, performance completion date. Using customer is Defense Logistics Agency. Type of appropriation is fiscal 2020 through 2021 operations and maintenance funds; and research, development, test and evaluation funds. The contracting activity is the Defense Logistics Agency Contracting Services Office, Philadelphia, Pennsylvania. American Water Operations and Maintenance LLC, Camden, New Jersey, has been awarded a $15,943,623 modification (P00161) to a 50-year contract (SP0600-08-C-8250) with no options periods for the ownership, operation and maintenance of water and wastewater utility systems at Fort Hood, Texas. This is a fixed‐price with prospective-price-redetermination contract. Locations of performance are New Jersey and Texas, with a Jan. 8, 2059, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2059 Army operations and maintenance funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia. (Awarded June 23, 2020) U.S. SPECIAL OPERATIONS COMMAND Arcticom LLC, Anchorage, Alaska, was awarded an $18,772,155 maximum single award “C” type contract (H92240-20-C-0004) with options included to extend services in support of Naval Special Warfare Command (NSWC) enterprise requirements for NSW Preparatory Course training and support services. Fiscal 2020 operations and maintenance funds in the amount of $3,329,539 are being obligated at the time of award. The work will be performed in Great Lakes, Illinois, and may continue through fiscal 2026 if all options are exercised. The contract was awarded competitively using Federal Acquisition Regulation Part 15 procedures with eight proposals received. NSWC, Coronado, California, is the contracting activity. *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2234393/source/GovDelivery/