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  • After The Shock: Implications For M&A In The Aerospace & Defense Market

    June 29, 2020 | Local, Aerospace

    After The Shock: Implications For M&A In The Aerospace & Defense Market

    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

  • Boeing renews its public pitch to replace Canada's CF-18 fleet

    June 29, 2020 | Local, Aerospace

    Boeing renews its public pitch to replace Canada's CF-18 fleet

    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

  • Can Tempest and FCAS projects both succeed in Europe?

    June 29, 2020 | International, Aerospace

    Can Tempest and FCAS projects both succeed in Europe?

    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

  • Contract Awards by US Department of Defense - June 26, 2020

    June 29, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - June 26, 2020

    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/

  • Turkey’s ‘chronic engine problem’ is harming defense projects, warn officials

    June 29, 2020 | International, Aerospace

    Turkey’s ‘chronic engine problem’ is harming defense projects, warn officials

    By: Burak Ege Bekdil ANKARA, Turkey — Turkey's inability to produce a fully indigenous engine is harming some of the country's otherwise successful domestic defense programs, according to industry and government officials. “We had it 15 years ago, we had it 10 years ago and we are still having it,” said a former defense industry chief. “It's our chronic engine problem.” A government procurement official agreed, telling Defense News that “at best the problem causes major delays, and at worst it can be an existential threat [to programs].” The Altay, a multibillion-dollar program for the production of Turkey's first indigenous tank, has long been delayed due to difficulties surrounding the engine and transmission used to power the new-generation tank. BMC, a Turkish-Qatari joint venture that in 2018 won the serial production contract for the Altay, said in October 2020 that the tank would be fielded within 24 months. The original target was to have the Altay in the field this year 2020. Today, procurement officials and industry sources say even 2022 is an optimistic deadline. Western countries with power pack technology, particularly Germany, have been reluctant to share technology or sell to Turkey for political reasons. “Lack of a feasible power pack [engine and transmission] is depriving the program of any sensible progress,” noted an industry source. Turkey also needs an engine for the new-generation TF-X fighter jet as well as indigenous helicopter models in the making. At the center of these engine efforts is Tusas Engine Industries, a state-controlled engine maker. TEI announced June 19 that it successfully tested its locally made TJ300 miniature turbojet engine, which the company produced for medium-range anti-ship missiles. The engine features a thrust rating of 1.3 kilonewtons. Company officials say the TJ300 engine's more advanced, future versions could power larger anti-ship cruise missiles and land-attack cruise missiles. Turkey hopes to power its anti-ship and land-attack cruise missiles with locally developed engines. “The effort is about ending dependency on imported designs,” a TEI official said. Turkey currently imports miniature air-breathing engines from Microturbo — a unit of French company Safran — to power its domestically developed cruise missiles. Separately, Turkey's Kale Group is developing a larger, albeit miniature turbojet engine called the KTJ-3200. It has a 3.2-kilonewton thrust rating, and will power the Atmaca and SOM missile systems. On a much bigger scale, Kale Group has ambitions to develop an engine to power the TF-X. In 2017, Kale Group and British company Rolls-Royce launched a joint venture to develop aircraft engines for Turkey, initially targeting the TF-X. But the £100 million (U.S. $124 million) deal was effectively put on hold due to uncertainties over technology transfer. In December, Turkish Foreign Minister Mevlüt Çavusoğlu said the government is keen to revive talks with Rolls-Royce. When asked for an update on negotiations, a Rolls-Royce spokesperson told Defense News: “We submitted an engine co-development proposal to Turkey, but the customer has not elected to pursue this to date.” A year before the Kale Group-Rolls-Royce partnership, Turkish Aerospace Industries — a sister company of TEI — signed a $125 million heads of agreement with U.K.-based firm BAE Systems to collaborate on the first development phase of the TF-X. Turkey originally planned to fly the TF-X in 2023, but aerospace officials are now eyeing 2025 at the earliest. TEI is also developing the TS1400, a turboshaft engine it intends to power the T625 Gökbey, a utility and transport helicopter developed and built by TAI. The Gökbey currently flies with the CTS-800A turboshaft engine supplied by Light Helicopter Turbine Engine Company, a joint venture between American firm Honeywell and Rolls-Royce. The Gökbey made its maiden flight in September. TEI says it successfully tested the “core” of its TS1400 turboshaft engine and plans to deliver the prototype to TAI in late 2020. But analysts remain cautious. “These efforts may eventually fail to materialize without meaningful foreign know-how,” said a London-based Turkey specialist. “Or they may come at costs not viable for mass production.” Andrew Chuter in London contributed to this report. https://www.defensenews.com/industry/techwatch/2020/06/26/turkeys-chronic-engine-problem-is-harming-defense-projects-warn-officials/

  • Lockheed paid suppliers $1.1 billion, added 8,300 jobs since pandemic

    June 29, 2020 | International, Aerospace

    Lockheed paid suppliers $1.1 billion, added 8,300 jobs since pandemic

    By: Joe Gould WASHINGTON ― Lockheed Martin has sent $1.1 billion in accelerated payment to support its network of suppliers amid the COVID-19 pandemic, the company announced Friday. The defense contracting giant has also hired 8,300 employees since the crisis began in March, with plans to hire 3,200 more before the end of the year. The hires mark a contrast with the rest of the U.S. economy, which saw the unemployment rate hit 13 percent this month and began a recession in February. “In this volatile environment, it is more important than ever before to maintain the operations of the defense industrial base and support our men and women in uniform,” Lockheed's new president and CEO, Jim Taiclet, said in a statement. Ever since the Pentagon announced it would speed progress payments to its suppliers to keep cash flowing in the defense-industrial base, it says it has made $3 billion in contract obligations. The Pentagon is working to support smaller firms in particular. Lockheed Martin said Friday it has “flowed all of the accelerated payments it has received from the Department of Defense to its supply chain, giving priority to small and vulnerable suppliers, as we continue our efforts to mitigate COVID-19 risks and promote a healthy Defense Industrial Base.” This wasn't the only good news for the sector this week. Ellen Lord, the undersecretary of defense for acquisition and sustainment, said at a Monday news conference that nearly all of the defense firms closed by the pandemic have reopened. “We see an enormous amount of recovery in the defense-industrial base. It depends on location and what type of work is being performed, but there is enormous progress coming back,” Lord said. “Obviously for manufacturing we need people on the line, so we're doing things differently in terms of following [the Centers for Disease Control and Prevention's] guidelines and so forth.” Still, the Pentagon expects to see “inefficiencies” across most programs as well as cost growth. “COVID-19 is shutting down defense manufacturing facilities and production lines, disrupting supply chains, and distressing the financial stability of the companies DoD relies on to protect the nation,” Lord said. Due to the effects of the pandemic, Lockheed said it would slow F-35 production, leaving it anywhere from 18 to 24 jets short of the 141 scheduled for delivery this year. https://www.defensenews.com/2020/06/26/lockheed-paid-suppliers-11b-added-8300-jobs-since-covid-19-hit/

  • UN SUCCESSEUR DE NOUVELLE GÉNÉRATION POUR LE GRIPEN

    June 29, 2020 | International, Aerospace

    UN SUCCESSEUR DE NOUVELLE GÉNÉRATION POUR LE GRIPEN

    Par Stefan Barensky - 25 juin 2020 Stockholm souhaite moderniser sa force aérienne face à la menace posée par Moscou. Cela va passer par l'intégration dans son armée de l'air d'avions de combat Gripen E/F de Saab, mais aussi par la mise en chantier d'un chasseur de nouvelle génération. Il y avait déjà le NGF (Next Generation Fighter) franco-germano-espagnol du Système de combat aérien futur (Scaf) et le Tempest britannique, mais l'Europe va bientôt se retrouver avec un troisième chasseur de nouvelle génération en développement. L'annonce est intervenue discrètement, et de manière laconique, le 15 juin, dans un discours en téléconférence du ministre de la Défense suédois, Peter Hultqvist, lors du forum des chefs de mission de l'Otan, dont son pays n'est pas membre. Parlant du danger que représentent pour les démocraties les efforts de déstabilisation par la désinformation, il a surtout mis en avant son intention de mettre sur pied une agence de défense psychologique. https://www.aerospatium.info/un-successeur-de-nouvelle-generation-pour-le-gripen/

  • MCO : Safran Helicopter Engines remporte le contrat pour le soutien des NH90 allemands et norvégiens

    June 26, 2020 | International, Aerospace

    MCO : Safran Helicopter Engines remporte le contrat pour le soutien des NH90 allemands et norvégiens

    La NAHEMA (NATO Helicopter Management Agency) vient de confier à Safran Helicopter Engines le soutien en MCO (maintien en condition opérationnelle) de 276 moteurs RTM322 équipant les NH90 appartenant au BAAINBw (Office fédéral des équipements, des technologies de l'information et du soutien en service de la Bundeswehr) en Allemagne et à l'Agence norvégienne des équipements de défense (Norwegian Defence Materiel Agency). Ces moteurs vont bénéficier du contrat de soutien Global Support Package (GSP) du motoriste et qui fait partie de la gamme EngineLife Services, les offres de services de Safran pour les moteurs d'hélicoptères. Ce contrat concerne la flotte de NH90 de l'armée allemande (Deutsches Heer), de la marine allemande (Deutsche Marine) et de la Force aérienne royale norvégienne (Luftforsvaret). Air & Cosmos du 25 juin 2020

  • Contract Awards by US Department of Defense - June 25, 2020

    June 26, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - June 25, 2020

    U.S. SPECIAL OPERATIONS COMMAND L3 Unmanned Systems Inc., Ashburn, Virginia (H92408-20-D-0001); Precision Integrated Programs LLC Newberg, Oregon (H92408-20-D-0002); Arcturus UAV Inc., Petaluma, California (H92408-20-D-0003); Insitu Inc., Bingen, Washington (H92408-20-D-0004); Wildflower International Ltd., Santa Fe, New Mexico (H92408-20-D-0005); and AAI Corp., doing business as Textron Unmanned Systems Inc., Hunt Valley, Maryland (H92408-20-D-0006), is awarded six indefinite-delivery/indefinite-quantity contracts with a maximum combined ceiling of $975,000,000 for Mid-Endurance Unmanned Aircraft Systems IV intelligence, surveillance and reconnaissance (ISR) services in support of U.S. Special Operations Command enterprise requirements worldwide. This multiple-award acquisition supports competition at the task-order level to ensure the most capable platforms and payloads provide real-time, responsive airborne ISR solutions to Special Operations Forces. Fiscal 2020 operations and maintenance funds in the amount $1,500 have been obligated for each contract at the time of award. The contracts were awarded competitively through a full and open competition with 10 proposals received. U.S. Special Operations Command, Tampa, Florida, is the contracting activity. ARMY The Boeing Co., Mesa, Arizona, was awarded a $439,179,677 modification (P00062) to contract W58RGZ-16-C-0023 for new-build Apache AH-64E aircraft and Longbow crew trainers. Work will be performed in Mesa, Arizona, with an estimated completion date of March 1, 2025. Fiscal 2020 Foreign Military Sales (Morocco) funds in the amount of $439,179,677 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. BAE Systems Inc., York, Pennsylvania, was awarded a $266,865,094 modification (P00039) to contract W56HZV-18-C-0133 for Bradley A4 Production Option Two, which awards 159 vehicles. Work will be performed in York, Pennsylvania, with an estimated completion date of March 31, 2023. Fiscal 2019 and 2020 weapons and tracked combat vehicle procurement (Army) funds in the amount of $266,865,094 were obligated at the time of the award. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity. BHI Construction LLC,* Harrisburg, South Dakota (W912MM-20-D-0001); G.A. Johnson Construction Inc.,* Harrisburg, South Dakota (W912MM-20-D-0002); Golden Rule Construction Co. Inc.,* Sioux Falls, South Dakota (W912MM-20-D-0003); Howe Inc.,* Sioux Falls, South Dakota, Dakota (W912MM-20-D-0004); MDM Construction LLC.,* West Fargo, North Dakota (W912MM-20-D-0005); and Sunkota Construction Inc.,* Sioux Falls, South Dakota (W912MM-20-D-0006), will compete for each order of a $20,000,000 firm-fixed-price contract to support the National Guard with construction projects. Bids were solicited via the internet with seven received. Work locations and funding will be determined with each order, with an estimated completion date of June 24, 2025. U.S. Property and Fiscal Office, Rapid City, South Dakota, is the contracting activity. Orion Marine Construction Inc., Tampa, Florida, was awarded a $14,648,100 firm-fixed-price contract for pipeline dredging. Bids were solicited via the internet with three received. Work will be performed in Port Mansfield, Texas, with an estimated completion date of March 1, 2021. Fiscal 2019 civil construction funds in the amount of $14,648,100 were obligated at the time of the award. U.S. Army Corps of Engineers, Galveston, Texas, is the contracting activity (W912HY-0C0021). NAVY Northrop Grumman Systems Corp., San Diego, California, is awarded a $333,401,760 modification (P00007) to previously-awarded fixed-price-incentive-firm-target contract N00019-19-C-0008. This modification exercises options for the production and delivery of three low-rate initial production MQ-4C Triton unmanned aircraft, two main operating bases and one forward operating base in an integrated functional capability-four and multiple-intelligence configuration, with associated export compliance support for the government of Australia. Work will be performed in San Diego, California (23.3%); Red Oak, Texas (13%); Palmdale, California (11.5%); Linthicum, Maryland (9.4%); Salt Lake City, Utah (9.3%); Bridgeport, West Virginia (5.2%); McClellan, California (4.7%); Indianapolis, Indiana (4.5%); Moss Point, Mississippi (3.3%); Waco, Texas (2.1%); San Clemente, California (1.5%); Newton, North Dakota (1%); various locations within the continental U.S. (9.8%); and various locations outside the continental U.S. (1.4%). Work is expected to be completed by April 2025. Foreign cooperative project funds for $27,601,190 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. General Dynamics Information Technology Inc., Falls Church, Virginia, is awarded a $38,824,217 firm-fixed-price, indefinite-delivery/indefinite-quantity contract to provide MK-41 Vertical Launch System repair and refurbishment. Work will be performed in Norfolk, Virginia, and potentially other locations based only on an emergent basis. Work is expected to be completed by June 2021. If options are exercised, work will be completed by June 2025. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $5,000 (for the minimum guarantee) will be obligated at time of award and will expire at the end of the current fiscal year. This contract was procured as full and open competition via the beta.SAM.gov website and one offer was received. The Mid-Atlantic Regional Maintenance Center, Norfolk, Virginia, is the contracting activity (N50054-20-D-0006). The Boeing Co., St. Louis, Missouri, is awarded a $16,543,143 firm-fixed-price order (N00019-20-F-0870) against previously-issued basic ordering agreement N00019-16-G-0001. This order procures retrofit modification upgrades to the series aircrafts' F/A-18 Block II Super Hornet and Growler display suites within the Block III Super Hornet and Growler Advanced Cockpit Systems. Work will be performed in St. Louis, Missouri (65%); Mesa, Arizona (15%); China Lake, California (10%); and Ft. Walton Beach, Florida (10%), and is expected to be completed by February 2025. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $15,075,223; and Foreign Military Sales funds in the amount of $1,467,920 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. Q.E.D. Systems Inc.,* Virginia Beach, Virginia, is awarded a $14,193,833 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract for Marine Gas Turbine Alteration Installation Team services in support of the Navy's Marine Gas Turbine (MGT) program. Work will be performed at various locations throughout the world based on each individual task order. The purpose of the contract is to provide for the installation of shipboard changes in accordance with approved ship change documents and to effect repairs and troubleshooting in accordance with government specifications on ships which utilize MGTs. Work is expected to be completed by June 2026. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $400,000 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was a small business set-aside and competitively procured via the Contract Opportunities website at beta.SAM.gov and two offers were received. The Naval Surface Warfare Center, Philadelphia Division, Philadelphia, Pennsylvania, is the contracting activity (N64498-20-D-4015). L3 Harris Technologies Inc., Palm Bay, Florida, is awarded an $11,688,708 modification (P00016) to previously-awarded firm-fixed-price contract N00421-17-C-0024. This modification is for the procurement of 133 Fibre Channel Network switches in support of F/A-18 Lot 44 requirements for the EA-18 Growler, F/A-18E/F Super Hornet and E-2D Hawkeye aircraft. Work will be performed in Malabar, Florida, and is expected to be completed by November 2022. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $11,688,708 will be obligated at the time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. General Dynamics National Steel and Shipbuilding Co., San Diego, California, is awarded an $11,172,403 modification to previously-awarded contract N00024-18-C-4439 to extend the delivery date of the USS Cowpens (CG 63) fiscal 2018 modernization period from December 28, 2019, to November 25, 2020, in order to complete ship repairs and alterations. Work will be performed in San Diego, California, and is expected to be completed by November 2020. Fiscal 2018 operations and maintenance (Navy) funding in the amount of $11,172,403 will be obligated at time of award and will not expire at the end of the current fiscal year. The use of fiscal 2018 operations and maintenance (Navy) funds was approved by the assistant secretary of the Navy (financial management and comptroller) on May 27, 2020, to fund within scope changes for this availability. The Southwest Regional Maintenance Center, San Diego, California, is the contracting activity. MISSILE DEFENSE AGENCY Kepler Research Inc., Woodbridge, Virginia, is being awarded a $73,119,865 competitive cost-plus-fixed-fee level-of-effort contract with a two-year base value of $16,925,921 and three one-year options for contracting, compliance, cost/price and operations advisory and assistance services. The work will be performed in the National Capital Region; Dahlgren, Virginia; Huntsville, Alabama; and other locations as directed with an estimated completion date of July 2025. This contract was competitively procured via publication on the beta.SAM.gov website with five proposals received. Fiscal 2020 research, development, test and evaluation funds in the amount of $1,099,719 are being obligated at time of award. The Missile Defense Agency, Huntsville, Alabama, is the contracting activity (HQ0858-20-C-0008). DEFENSE LOGISTICS AGENCY Marketing Assessment Inc., Sterling, Virginia (SPE2DE-20-D-0015, $48,000,000); and Manus Medical LLC, Richmond, Virginia (SPE2DE-20-D-0014, $30,000,000), have each been awarded a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract under solicitation SPE2DE-18-R-0001 for medical and surgical supplies. These were competitive acquisitions with 41 responses received. They are five-year contracts with no option periods. Location of performance is Virginia, with an ordering period end date of June 24, 2025, for Marketing Assessment Inc. and July 1, 2025, for Manus Medical LLC. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. The Raytheon Co., McKinney, Texas, has been awarded a $14,737,383 firm-fixed-price delivery order (SPRPA1-20-F-QD02) against a six-year long-term contract (SPRBL1-15-D-0017) for aircraft radar system spare parts. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. Location of performance is Texas, with a Nov. 14, 2022, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2020 through 2022 (Navy) working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2232845/source/GovDelivery/

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