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« En ce moment tout le monde regarde [...] le passage du CSeries à l'A220 chez Airbus », a déclaré, le 2 mars, le président du GIFAS, Éric Trappier, lors d'un point de presse en marge d'un événement réunissant 250 représentants du secteur des deux pays, France et Canada, qui se tenait à Montréal, dans le cadre de la mission industrielle du GIFAS au Canada. « C'est un métier difficile [où il faut savoir concilier les facteurs] techniques, commerciaux et financiers, a-t-il poursuivi. Ce n'est pas tout d'avoir des succès techniques. Il faut aussi pouvoir les financer. Et pour les financer, il faut pouvoir les vendre. » La mission du GIFAS espère notamment convaincre le gouvernement fédéral de ne pas toujours seulement regarder du côté des États-Unis lorsque vient le temps de faire ses dépenses militaires.

DEFENSE INTELLIGENCE AGENCY Applied Research Associates, Albuquerque, New Mexico (HHM402-20-D-0007); Booz Allen Hamilton Inc., McLean, Virginia (HHM402-20-D-0008); CACI NSS Inc., Reston, Virginia (HHM402-20-D-0009); Centauri LLC, Chantilly, Virginia (HHM402-20-D-0010); General Dynamics Information Technology Inc., Herndon, Virginia (HHM402-20-D-0011); Northrop Grumman Systems Corp., Cincinnati, Ohio (HHM402-20-D-0012); and Radiant Geospatial Solutions, Gaithersburg, Maryland (HHM402-20-D-0013), were awarded a five-year indefinite-delivery/indefinite-quantity (IDIQ), multiple-award contract called DORE2 with a combined ceiling value of $990,000,000. Through this award, the Defense Intelligence Agency (DIA) will procure Data Science, Operations, Requirements, Exploitation and Engineering (DORE2) services to support DIA Directorate for Science and Technology missions. Work will be performed at contractor facilities and at government facilities in the National Capital Region with an estimated completion date of March 1, 2025. The contract was awarded through a full and open solicitation and eight offers were received. Each company will receive a $10,000 minimum guarantee. Task Orders (TO) will be issued competitively under this IDIQ which will allow for the following TO contract types: firm-fixed-price; fixed price, level of effort term; fixed-price incentive (FPI includes firm and successive targets; fixed-price-award-fee; cost-plus incentive-fee; cost-plus-award-fee; cost-plus-fixed-fee term and completion; and time-and-material or labor hour). The Virginia Contracting Activity, Washington, District of Columbia, is the contracting activity. NAVY Andromeda Systems Inc.,* Virginia Beach, Virginia, is awarded an $89,104,038 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract. This contract provides reliability-centered maintenance for service aircraft, engines, systems (weapons, aircrew escape, avionics and electrical systems), support equipment (avionics support equipment, non-avionics support equipment and aircraft launch/recovery equipment), and a Fleet Readiness Center/depot plant equipment to include modifications during all life cycle phases and levels of maintenance. Work will be performed in various locations within the continental U.S. and is expected to be completed by March 2025. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was a small-business set-aside and competitively procured via Federal Business Opportunities; one offer was received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-20-D-0028). Architecture, Engineering, Consulting, Operations, and Maintenance (AECOM) Technical Services Inc., Los Angeles, California, is being awarded a $75,000,000 maximum amount, firm-fixed-price, indefinite-delivery/indefinite-quantity, architect-engineering contract for preparation of Navy and Marine Corps facilities' planning and environmental documentation in the Naval Facilities Engineering Command (NAVFAC) Europe, Africa, Central (EURAFCENT) area of operations (AO). Work will be performed at various locations within the NAVFAC/EURAFCENT/AO to include but not limited to: Naples, Italy; Sigonella, Italy; Souda Bay, Greece; Manama, Kingdom of Bahrain; Djibouti, Africa; Rota, Spain; and Vicenza, Italy. The work to be performed provides for design projects including, but not limited to: administration buildings, religious facilities, community buildings, dining facilities, recreational facilities, security buildings, child development centers, bachelor quarters, Navy lodges, airfield facilities, waterfront facilities, operational facilities, base housing, water treatment facilities and associated work, central plant utility system upgrades and other infrastructure. No task orders are being issued at this time. The term of the contract is not to exceed 60 months with an expected completion date of February 2024. Contract funds are fiscal 2020 operations and maintenance, Navy (O&M, N). Future task orders will be primarily funded by O&M, N. This contract was competitively procured via the Navy Electronic Commerce Online website with five proposals received. NAVFAC EURAFCENT, Naples, Italy, is the contracting activity (N33191-20-D-0605). Vernadero Group Inc.,* Phoenix, Arizona (N62473-20-D-0021); Gulf South Research Corp.,* Baton Rouge, Louisiana (N62473-20-D-0022); BioResource Consultants Inc.,* Ojai, California (N62473-20-D-0023); and Hercules JV,* Yuma, Arizona (N62473-20-D-0024), are awarded a combined $30,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, multiple award contract for natural resources-related services at various locations within Naval Facilities Engineering Command (NAVFAC) Southwest's area of operations (AO), including but not limited to: California (94%); Arizona (1%); Colorado (1%); Nevada (1%); New Mexico (1%); Oregon (1%); and Washington (1%). The work to be performed provides natural resources-related services for botanical, ornithological, mammal, amphibian, reptile and invertebrate surveys, wetlands delineations, biological monitoring, soil sampling and analysis, natural resources and fire management plans, native plant community planning and restoration, wildland erosion control plans, research and analysis of the effects of military training or similar extensive land uses (e.g. off-road vehicle use) for natural resources on the species, community and landscape scale. Use of this information will predict ecological trends, natural resource and model development for land use (including both conceptual and mathematical modeling through aerial photo interpretation), use of natural resources in non-urban areas, geographic information systems and for the preparation of interpretive materials (e.g. informational pamphlets and signage). The maximum dollar value, including the one two-year base period and one three-year option period for all four contracts combined is not to exceed $30,000,000. The term of the contract is not to exceed 60 months and is expected to be complete by February 2025. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $20,000 are being obligated on this award and will expire at the end of the current fiscal year. No task orders are being issued at this time. This contract was competitively procured via the Federal Business Opportunities website and six proposals were received. The four contractors may compete for the task orders under the terms and conditions of the awarded contract. NAVFAC Southwest, San Diego, California, is the contracting activity. Bechtel Plant Machinery Inc., Monroeville, Pennsylvania, is awarded an $18,350,860 cost-plus-fixed-fee modification to previously awarded contract N00024-19-C-2112 for naval nuclear propulsion components. Work will be performed in Monroeville, Pennsylvania (93%); and Schenectady, New York (7%). Fiscal 2020 other procurement for shipbuilding and conversion (Navy) funding in the amount of $18,350,860 will be obligated at time of award and funds will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with Federal Acquisition Regulations 6.302-1 with only one responsible source. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Textron Aviation Inc., Wichita, Kansas, is awarded a $14,291,437 modification (P00005) to a previously awarded firm-fixed-price contract (N00019-17-C-0004) and provides modification for the production and delivery of one King Air 350C Cargo Slick aircraft modified to a UC-12W. Work will be performed in Wichita, Kansas, and is expected to be completed in March 2021. Fiscal 2020 aircraft procurement funds in the amount of $14,291,437 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 Aeronautics Co., Fort Worth, Texas, is awarded a $9,627,065 cost-plus-fixed-fee order (N00019-20-F-0532) against a previously issued basic ordering agreement (N00019-19-G-0008). This order procures program management support to execute the planning, procurement and delivery of initial aircraft spares in support of the F-35 Air Force, Marine Corps and Navy, non-Department of Defense (DoD) participants and Foreign Military Sales (FMS) customers operational aircraft. Work will be performed in Fort Worth, Texas, and is expected to be complete in December 2020. Fiscal 2020 aircraft procurement (Air Force) funds in the amount of $3,833,787; fiscal 2020 aircraft procurement (Navy) funds in the amount of $2,374,818; non-DoD participant funds in the amount of $2,225,726; and FMS funds in the amount of $1,192,734 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. Bell Boeing Joint Project Office, Amarillo, Texas, is awarded a $7,272,135 modification (P00007) to a previously awarded, cost-plus-fixed-fee delivery order (N00019-18-F-0016) against basic ordering agreement (N00019-17-G-0002). Work will be performed in Fort Worth, Texas (84%); Ridley Park, Pennsylvania (5%); Patuxent River, Maryland (4%); Fort Walton Beach, Florida (4%); and Amarillo, Texas (3%), and is expected to be completed in May 2021. This modification provides additional funding to support non-recurring engineering and the associated efforts required to incorporate optimized wiring and structural improvements on the nacelle into the V-22 aircraft production line and retrofit of fleet aircraft during depot level maintenance and supports Navy, Marines Corps, Air Force and the government of Japan. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $4,312,376; fiscal 2019 aircraft procurement (Air Force) funds in the amount of $1,133,645; fiscal 2018 aircraft procurement (Navy) funds in the amount of $1,088,396; and Foreign Military Sales funds in the amount of $737,718 will be obligated at time of award, $1,088,396 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. MISSILE DEFENSE AGENCY Northrop Grumman Systems Corp., Redondo Beach, California, is being awarded a $20,808,229 modification (P00374) to a previously awarded F04701-02-C-0009 contract to exercise an option period. The value of this contract is increased from $1,921,265,055 to $1,942,073,285. Under this modification, the contractor will provide on-orbit operations and sustainment for the Space Tracking and Surveillance System. The work will be performed at the Missile Defense Space Center, Colorado Springs, Colorado; and at Northrop Grumman Systems Corp., Redondo Beach, California. The performance period is from April 1, 2020, to March 31, 2021. Fiscal 2019 and 2020 research, development, test and evaluation funds in the amount of $13,811,905 is certified available for modification award. The Missile Defense Agency, Colorado Springs, Colorado, is the contracting activity. U.S. TRANSPORTATION COMMAND Three companies were awarded Option Year One modifications under the following master lease contract, indefinite-delivery/indefinite-quantity, fixed price contracts: SeaCube Leasing International Inc., Woodcliff Lake, New Jersey (HTC711-19-D-R008); Textainer Equipment Management, San Francisco California (HTC711-19-D-R009); and Triton Container International Limited, Hamilton HM 12, Bermuda (HTC711-19-D-R-010). The companies are eligible to compete at the task order level for an option year estimated amount of $17,253,689. This modification provides for intermodal equipment leasing and transportation services, and related container support functions, to include interfacing with government systems to meet the government missions and exercises. Work will be performed on a global basis. Option Year One period of performance is March 1, 2020, to Feb. 28, 2021. This modification brings the total cumulative estimated face value of the contract to $33,480,935 from $16,227,246. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. (Awarded Feb. 28, 2020) ARMY Dawson Technical Inc.,* San Antonio, Texas, was awarded a $14,719,129 firm-fixed-price contract to provide total facilities operation and maintenance for the Army Chemical Defense Training Facility, Fort Leonard Wood, Missouri. Bids were solicited via the internet with two received. Work will be performed in Fort Leonard Wood, Missouri, with an estimated completion date of March 31, 2025. Fiscal 2020 operations and maintenance, Army funds in the amount of $14,719,129 were obligated at the time of the award. U.S. Army Field Directorate Office, Fort Eustis, Virginia, is the contracting activity (W911S7-20-C-0003). EMC Inc.,* Grenada, Mississippi (W912HY-20-D-0013); and Florabama Geospatial Solutions LLC,* Defuniak Springs, Florida (W912HY-20-D-0014), will compete for each order of the $10,000,000 firm-fixed-price contract for architect and engineering services for professional surveying and mapping services. 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 March 1, 2025. U.S. Army Corps of Engineers, Galveston, Texas, is the contracting activity. AIR FORCE General Electric Co.-GE Research, Niskayuna, New York, has been awarded a $10,431,151 cost-type contract for Rapid Assurance Curation Kit (RACK) software. This contract provides for the research, development and demonstration of the RACK software to enable certifiers to rapidly determine system risk acceptability. This effort will provide a common evidence representation and efficient ingestion Application Programming Interface, automatic feedback to evidence providers, automatic decomposition of evidence, a polystore that organizes diverse evidence items, the ability to accept and store provenance metadata and an efficient query interface. The location of performance is Niskayuna, New York, and work is expected to be complete by March 2, 2024. This award is the result of a competitive acquisition and 34 offers were received. Fiscal 2020 research, development, test and evaluation funds in the amount of $470,444 are being obligated at time of award; this is not a multi-year contract. The Air Force Research Laboratory, Rome, New York, is the contracting activity (FA8750-20-C-0203). DEFENSE LOGISTICS AGENCY Meggitt Polymers and Composites, Rockmart, Georgia, has been awarded a maximum $10,073,708 firm-fixed-price delivery order (SPRPA1-20-F-LW09) against a five-year basic ordering agreement (SPRPA1-15-G-003X) for fuel tanks for the F/A-18 aircraft. This was a competitive acquisition with two responses received. This is a three-year contract with no option periods. Location of performance is Georgia, with a Nov. 30, 2023, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2020 through 2023 Navy working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. CORRECTION: The contract announced on Feb. 28, 2020, for Rosenbauer America LLC, Lyons, South Dakota (SPE8EC-20-D-0055) was announced with an incorrect award date. The correct award date is March 2, 2020. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2099625/source/GovDelivery/

By: Christina Mackenzie PARIS – France's major defense companies are looking back at a strong 2019, thanks to a combination of exceptional contracts and the country's overall healthy economy, executives said this week. In the naval sector, Naval Group's orders shot up 44 percent to €5.3 billion ($5.8 billion) in 2019, taking the company's order book to a total of €15.1 billion ($16.6 billion). Of this, 38 percent is for the export market and 62 percent is for France. Roughly three quarters of the business were in the shipbuilding sector, with almost one quarter in services. These figures do not include the whole of the contract to build 12 submarines for Australia, “as this income will be shown as it is paid, tranche by tranche,” explained outgoing CEO Hervé Guillou. In addition, the group saw a 6 percent rise in EBIT (earnings before interest and taxes) to €282 million ($310 million) and a 3 percent rise in revenues to €3.7 billion ($4 billion). Guillou, who will be replaced as CEO in March by Pierre-Eric Pommellet, said his successor had four main challenges for the future: delivering the Suffren submarine; accelerating production in the face of Chinese competition; consolidating the group's international presence; and developing the workforce. In the land sector, revenues for Arquus, the French company which is the defense arm of Sweden's Volvo Group, rocketed 72.5 percent between 2017 and 2019. CEO Emmanuel Levacher said he was not allowed to give revenue and sales figures for Arquus, whose revenues are included in the Volvo “Group functions and other” column. However, those data show net sales for 2019 were SEK8.8 billion ($911.4 million), which means they are likely around the $660 million mark. Levacher was all smiles announcing “a very great year” that was “exceptionally rich,” remarking that “this is remarkable growth for an industrial company.” He said he expected the company to grow a further 10 percent in 2020. Exports accounted for 42 percent of the revenue. Levacher was able to put a figure on contracts signed in 2019: €1.2 billion ($1.3 billion) “mostly in Africa,” but also a tranche of €214 million ($235 million) in the framework of the CaMo contract with Belgium for 382 Griffon multirole armored vehicles and 60 Jaguar armored reconnaissance and combat vehicles to be delivered between 2025 and 2030. Levacher said contracts were also signed for “a few dozen” Sherpa and Dagger vehicles for the Middle East. He was optimistic for the future, remarking that “all of the French army's military trucks, whether they be 4×4s, 6×6s, 8×8s all need to be changed in the next five years.” He said the company had developed a specific truck to meet these needs as the call for tender will be published before the end of this year. In the defense-electronics sector, Thales's CEO Patrice Cain also described 2019 as “a good year in which we progressed.” Its EBIT rose 19 percent to slightly over €2 billion ($2.2 billion), “the first time we've gone over the symbolic bar of €2 billion,” he said. Defense accounts for 40 percent of the group's revenues. Order intakes in the defense and security sector rose a record 17 percent to €9.9 billion ($11 billion) while sales rose 6.4 percent, “a little higher than anticipated,” according to CFO Pascal Bouchiat, to €8.3 billion ($9 billion). These include Thales and Babcock winning the bid for the T31 frigate in the UK against BAE Systems. Bouchiat noted that “several multi-year contracts” had been signed “underpinning long-term growth” for the group. Finally, in the military-aircraft sector, Dassault Aviation recorded an order intake of €3.3 billion (against €2.7 billion in 2018), the bulk of which (€2.6 billion) was for France and includes the integrated support contract for the French Rafale over the next 10 years and an additional order for supplemental development and integration work concerning communications for the F4 standard of the aircraft. Net sales shot up 44 percent to €7.3 billion due to the record number of 26 Rafales delivered in 2019. CEO Eric Trappier said that in 2020 Dassault expected to deliver 13 Rafales and he saw a tendency of governmental authorities to buying the company's Falcon business jet for surveillance and reconnaissance missions. Trappier said that in 2020 the company would continue to try and export the Rafale and was notably working on the Finnish and Swiss fighter competitions. Both countries are expected to make their decisions in 2021. https://www.defensenews.com/global/europe/2020/02/28/french-defense-firms-fete-formidable-profits-in-2019

Christelle Perret C'est officiel, depuis le 11 février 2020, la France a rejoint l'initiative Combined Space Operations (ou CSpO) en qualité de membre aux côtés de six autres nations : l'Australie, le Canada, la Nouvelle-Zélande, le Royaume-Uni, les États-Unis et l'Allemagne. C'est lors de la réunion annuelle des états membres, qui s'est tenue les 11 et 12 février 2020 à Ottawa, au Canada, que la France a signé la lettre d'adhésion au CSpO. L'objectif de cette initiative est le développement d'une collaboration spatiale et l'élargissement de partenariats clés entre les pays signataires. L'initiative Combined Space Operations Le CSpO est une initiative assez récente. Actée initialement en 2014, elle rassemblait à ses débuts les États-Unis, l'Australie, le Canada et le Royaume-Uni. La Nouvelle-Zélande a adhéré au projet en 2015. En 2016, ce sont la France et l'Allemagne qui le rejoignaient, en qualité d'observateurs d'abord, avant de devenir membres associés en 2017. En décembre 2019, l'Allemagne devient finalement membre officiel, suivie de près par la France, ce 11 février 2020, lors de la réunion annuelle des nations membres, à Ottawa. L'objectif de l'initiative est toujours le même qu'exprimé en 2014 : développer la collaboration spatiale et les partenariats clés entre les nations membres. C'est Michel Friedling, Général de division aérienne à la tête du commandement de l'espace, qui a fait le déplacement pour signer la lettre d'adhésion à l'initiative CSpO, au nom de Florence Parly, ministre des Armées. Le CSpO pour coordonner la défense spatiale Lors des échanges des 11 et 12 février derniers, les nations membres ont évoqué les enjeux spatiaux actuels et futurs, abordant également la question de la coordination des politiques, des opérations et des capacités mondiales. Il a également été question des défis et des opportunités de 2019, pour aboutir à un bilan de l'année écoulée. La France partage donc désormais les intérêts de l'initiative CSpO,soit la participation à des efforts coordonnés dans le domaine de la défense spatiale. L'existence d'une telle initiative doit permettre d'améliorer les capacités spatiales des nations membres et de faciliter les actions conjointes entre les participants. Le Général John Raymond, commandant de la force spatiale américaine, a déclaré être ravi de l'entrée de la France et de l'Allemagne au CSpO, qui correspond au « renforcement de notre conscience collective du domaine spatial », précisant que « nos alliés nous aident à conserver notre supériorité spatiale et à renforcer les bases de notre efficacité au combat ». https://www.clubic.com/mag/sciences/conquete-spatiale/actualite-886069-defense-spatiale-france-rejoint-combined-space-operations-initiative-cspo.html

ARMY Ceradyne Inc., Irvine, California (W91CRB-20-D-0007); and TenCate Advanced Armor USA Inc., Hebron, Ohio (W91CRB-20-D-0008), will compete for each order of the $264,638,260 cost-plus-fixed-fee, firm-fixed-price contract for X-Side Ballistic Insert hard armor plates. 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 Feb. 27, 2024. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. Southwest Valley Constructors Co., Albuquerque, New Mexico, was awarded a $175,415,000 firm-fixed-price contract for the design-build of the Rio Grande Valley Sector 07 border infrastructure construction project. Bids were solicited via the internet with five received. Work will be performed in Rio Grande City, Texas, with an estimated completion date of Oct. 4, 2021. Fiscal 2018 and 2019 appropriation funds in the amount of $175,415,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W9126G-20-F-A001). Vectrus Systems Corp., Colorado Springs, Colorado, was awarded a $121,777,015 modification (P00053) to contract W91RUS-13-C-0006 for continued support of critical operation, maintenance and defense of Army communications. Work will be performed in Kuwait, with an estimated completion date of Aug. 28, 2020. Fiscal 2020 operations and maintenance funds in the amount of $121,777,015 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. Fechheimer Brothers Co, Cincinnati, Ohio, was awarded a $99,000,000 firm-fixed-price contract for procurement of the Army Green Service Uniform. 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 Feb. 25, 2021. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911QY-20-D-0012). J & J Maintenance Inc., Austin, Texas, was awarded an $86,190,738 modification (P00004) to contract W81K04-19-D-0011 for healthcare environmental services in support of San Antonio Military Medical Center-North. 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 Jan. 31, 2021. U.S. Army Health Contracting Activity, San Antonio, Texas, is the contracting activity. General Dynamics Land Systems, Sterling Heights, Michigan, was awarded an $83,859,066 modification (P00074) to contract W56HZV16-D-0025 to extend the period of performance by 12 months on the contractor's efforts to maintain and deploy the Stryker Family of Vehicles. 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 Feb. 28, 2021. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity. Leidos Inc., Gaithersburg, Maryland, was awarded a $33,330,855 modification (P00030) to contract W58RGZ-17-C-0058 for contractor logistics support services in Afghanistan in support of the Afghanistan Air Force and Special Mission Wing. Work will be performed in Kabul, Afghanistan, and Gaithersburg, Maryland, with an estimated completion date of May 31, 2020. Fiscal 2020 Afghanistan Security Forces, Army and operations and maintenance, Army funds in the amount of $33,330,855 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Raytheon/Lockheed Martin Javelin JV, Tucson, Arizona, was awarded an $18,431,215 modification (P00022) to contract W31P4Q-19-C-0059. Work will be performed in Tucson, Arizona, with an estimated completion date of June 25, 2020. Fiscal 2020 operations and maintenance, Army, and foreign military sales (Australia, Czech Republic, Estonia, France, Georgia, Indonesia, Ireland, Jordan, Lithuania, New Zealand, Norway, Oman, Qatar, Turkey, Ukraine and United Arab Emirates) funds in the amount of $18,431,215 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Rore Corp, San Diego, California, was awarded a $17,249,182 firm-fixed-price contract for construction of a new jet fuel complex with field erected vertical storage tanks, pump shelter, truck fill stands, offloads, and refueler truck parking at the Air National Guard Base at the Fresno-Yosemite International Airport. Bids were solicited via the internet with three received. Work will be performed in Fresno, California, with an estimated completion date of Feb. 28, 2022. Fiscal 2016 military construction, defense-wide funds in the amount of $17,249,182 were obligated at the time of the award. U.S. Army Corps of Engineers, Sacramento, California, is the contracting activity (W91238-20-C-0005). National Conferencing Inc., Dumfries, Virginia, was awarded a $22,483,731 cost-no-fee contract for event planning and logistical support services for the Office of the Chief of Chaplains. Bids were solicited via the internet with one received. Work will be performed in Dumfries, Virginia, with an estimated completion date of June, 30, 2020. Fiscal 2020 operations and maintenance, Army funds and overseas contingency operations, defense funds in the amount of $14,714,154 were obligated at the time of the award. Field Directorate Office, Fort Sam Houston, Texas, is the contracting activity (W9124J-20-C-0005). National Industries for the Blind, Alexandria, Virginia, was awarded a $13,641,430 modification (P00005) to contract W911QY-19-C-0025 for Advanced Combat Shirts. Work will be performed in Alexandria, Virginia, with an estimated completion date of Feb. 28, 2021. Fiscal 2020 operations and maintenance, Army funds in the amount of $13,641,430 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. Kiewit Infrastructure West Co, Vancouver, Washington, was awarded a $10,150,000 modification (P00017) to contract W912DW-18-C-0011 for construction of a fish passage facility at Mud Mountain Dam. Work will be performed in Buckley, Washington, with an estimated completion date of Sept. 22, 2022. Fiscal 2018 civil construction funds in the amount of $10,150,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Seattle, Washington, is the contracting activity. AIR FORCE Northrop Grumman Systems Corp., Linthicum Heights, Maryland, has been awarded a $262,281,057 firm-fixed price modification (P00027) to previously awarded contract FA8615-17-C-6047 for Active Electronically Scanned Array radars of Air Force F-16 aircraft. This modification is for the exercise of options to include 15 engineering, manufacturing and development and 90 production radars, as well as associated support equipment and spares. Work will be performed at Linthicum Heights, Maryland, and is expected to be completed by Dec. 2022. The total cumulative face value of the contract is $553,448,803. Fiscal 2020 research and development funds in the amount of $34,182,567; fiscal 2018 procurement funds in the amount of $88,201,189; and fiscal 2020 procurement funds in the amount of $197,955,911 are being obligated at the time of award. The Air Force Life Cycle Management Center, Fighter Bomber Directorate, F-16 Division, Wright Patterson Air Force Base, Ohio, is the contracting activity. Teledyne Brown Engineering Inc., Huntsville, Alabama, has been awarded a $40,000,000 ceiling, hybrid indefinite-delivery/indefinite-quantity, firm-fixed-price and cost-plus-fixed-fee contract for the production of the Automated Radioxenon Concentrator and Spectrometer (ARCS) production units and spares. This contract will produce a multiple high sensitivity radioxenon sampler systems for the nuclear test monitoring requirements of the United States Atomic Energy Detection System network to verify international treaties. The current ARCS system was developed with the needs of both the Air Force Technical Applications Center and the Comprehensive Test Ban Treaty Organization (CTBTO) in mind. The CTBTO operates a world-wide network of nuclear sensing stations called the International Monitoring System. The work is expected to be completed by Jan. 31, 2028. This award is the result of a sole-source acquisition. Fiscal 2020 other procurement funding in the amount of $4,519,077 will be obligated in Task Order 0001 at the time of award. The Acquisition Management Integration Center, Patrick Air Force Base, Florida, is the contracting activity (FA7022-20-D-0003). Southern Methodist University, Dallas, Texas, has been awarded a $17,957,968 cost reimbursable, no-fee contract for Seismic-Acoustic Monitoring Program IV. This contract provides operations and maintenance (O&M) and research and development (R&D) support to the Air Force Technical Applications Center mission by operating, maintaining and sustaining geophysical equipment in Korea. Work will be performed in Dallas, Texas, and locations in Korea, and is expected to be completed by Nov. 30, 2028. This award is the result of a sole-source acquisition. Fiscal 2020 O&M funds in the amount of $1,023,637 and R&D funds in the amount of $418,105 are being obligated at the time of award. The Acquisition Management Integration Center, Patrick Air Force Base, Florida, is the contracting activity (FA7022-20-C-0003). Tyonek Global Services LLC, Anchorage, Alaska, has been awarded a $15,060,087 contract modification (P00006) to previously awarded FA8773-19-C-A004 for cyber operations formal training support. The contract modification exercises option year one of the four year contract. Work will be performed at Hurlburt Field, Florida, and Joint Base San Antonio, Texas, and is expected to be complete by Feb. 28, 2021. Fiscal 2020 operations and maintenance funds in the amount of $ $3,765,021 are being obligated at the time of award. The 38th Contracting Squadron, Tinker Air Force Base, Oklahoma, is the contracting activity. 22nd Century Technologies Inc., Somerset, New Jersey, has been awarded a firm-fixed price contract for $9,060,499 to execute option four (P00016) of previously awarded multi-year contract FA8773-15-C-0067 for essential capabilities to support the 33rd Network Warfare Squadron (33 NWS) in conducting its mission of Defense Cyber Operations (DCO) for the Air Force (AF) and supported unified commands and their combatant commands. The contractor plans, implements and executes the 33 NWS managed AF DCO Mission. In addition, support is required for conducting analysis of all network defense events, alerts and traffic on all network Intrusion Detection System and Intrusion Prevention System, Non-secure Internet Protocol Router Network and Secure Internet Protocol Router Network for the 33 NWS. Work will be performed at Joint Base San Antonio-Lackland, Texas, and is expected to be complete by Feb. 28, 2021. The award is the result of a competitive acquisition with eight proposals received. Fiscal 2020 operations and maintenance funds in the amount of $8,315,457 are being obligated at the time of the award. The 38th Contracting Squadron, Tinker Air Force Base, Oklahoma, is the contracting activity. Data Computer Corp. of America, Ellicott City, Maryland, has been awarded a $7,201,112 contract modification (P00025) to a previously awarded contract FA8806-16-F-0002 for Western Range Modernization Network. This contract modification is for an engineering change proposal that supports the modernization of the Western Range Communications Subsystems to an IP-based network that supports data, voice and video mission communication, ensuring that there is continuity of services. The location of performance is Vandenberg Air Force Base, California, and is estimated to be completed by March 31, 2023. Fiscal 2019 space and procurement funds are being obligated at the time of award. The total cumulative face value of the contract is $89,028,641. Peterson Air Force Base, Colorado Springs, Colorado, is the contracting activity. NAVY Bell-Boeing Joint Project Office, Amarillo, Texas, is awarded a $165,275,894 modification (P00028) to a previously awarded fixed-price-incentive-firm-target, cost-plus-fixed-fee contract (N00019-17-C-0015) for the manufacture and delivery of two MV-22B variation in quantity aircraft for the Marine Corps and to provide funding for additional repairs in support of the Common Configuration-Readiness and Modernization Program. Work will be performed in Fort Worth, Texas (30%); Ridley Park, Pennsylvania (15%); Amarillo, Texas (13%); Red Oak, Texas (3%); East Aurora, New York (3%); Park City, Utah (2%); McKinney, Texas (1%); Endicott, New York (1%); various other locations within the continental U.S. (CONUS) (28%); and various other locations outside CONUS (4%); expected completion by September 2023. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $165,275,894 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 $141,655,639 modification (P00028) to a previously awarded fixed-price-incentive-firm-target contract (N00019-18-C-1048). This modification provides for the stand-up of organic level repair capabilities for the combat aircraft F-35 communications, navigation and information system. Work will be performed in San Diego, California (39%); Fort Worth, Texas (28%); Melbourne, Florida (12%); Genoa, Italy (10%); White Plains, New York (5%); Oslo, Norway (4%); and Beverly, Massachusetts (2%), and is expected to be completed by June 2024. Fiscal 2019 aircraft procurement (Air Force) funds in the amount of $70,827,820, fiscal 2019 aircraft procurement (Navy) funds in the amount of $35,413,910 and fiscal 2019 aircraft procurement (Marine Corps) funds in the amount of $35,413,909 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. AAI Corp. (doing business as Textron Systems), Hunt Valley, Maryland, is awarded a $21,795,236 fixed-price incentive modification to previously awarded contract N00024-14-C-6322 for low rate initial production for the Unmanned Influence Sweep System (UISS) Unmanned Surface Vehicle Program. Work will be performed in Hunt Valley, Maryland (70%), and Slidell, Louisiana (30%), and is expected to be completed by August 2021. The UISS will allow the littoral combat ship to perform its mine countermeasure sweep mission and will target acoustic, magnetic, and magnetic/acoustic combination mine types. The UISS program will satisfy the Navy's need for a rapid, wide-area coverage mine clearance capability, required to neutralize magnetic/acoustic influence mines. UISS seeks to provide a high area coverage rate in a small, lightweight package with minimal impact on the host platform. Fiscal 2018 other procurement (Navy) and fiscal 2019 other procurement (Navy) funding in the amount of $21,795,236 will be obligated at time of award. Funds in the amount of $7,950,616 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. ACE Maintenance and Services Inc.,* Austin, Texas, is awarded an $18,382,094 for an indefinite-delivery/indefinite-quantity (IDIQ) modification contract extension under an IDIQ contract for janitorial services at Naval Support Activity Bethesda. Work will be performed in Bethesda, Maryland. The work provides all labor, management supervision, tools, materials and equipment required for base janitorial services. After award of this modification, the total cumulative contract value will be $98,217,616 with an option period from March 2020 to February 2021. No funds will be obligated at time of award. Fiscal 2020 operations and maintenance (O&M), (Navy); O&M, (Army); Navy working capital fund; and fiscal 2020 Defense Health Program funds in the amount of $18,195,525 for recurring work will be obligated on individual task orders issued during the option/extension period. The Naval Facilities Engineering Command, Washington, District of Columbia, is the contracting activity (N40080-15-D-0305). PERC Water Corp.,* Costa Mesa, California, is being awarded a $17,209,469 firm-fixed-price contract for the operation and maintenance of the southern and northern tertiary treatment plants on Marine Corps Base (MCB) Camp Pendleton, California. Work will be performed in Camp Pendleton, California, and is expected to be completed by March 2025. The work to be performed provides for labor, supervision, management and materials to simultaneously perform the operation and maintenance services of the southern regional tertiary treatment plant and the northern regional tertiary treatment plant on MCB Camp Pendleton, including wastewater, custodial, pest control, integrated solid waste management, grounds maintenance and landscaping. Fiscal 2020 operations and maintenance contract funds in the amount of $2,930,349 are obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via the beta.SAM.gov website with two proposals received. The Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity (N62473-20-D-0019). Lockheed Martin Rotary and Mission Systems, Liverpool, New York, is awarded a $16,388,917 firm-fixed-price contract for the procurement of towed arrays and provisioned item orders to support an indefinite quantity of spares; cost-plus-fixed-fee for engineering services for post-delivery support, including repairs and engineering upgrades, the array refurbishment program, cost-only for travel and material in support of engineering services and refurbishments. Work will be performed in Liverpool, New York, and is expected to be completed by February 2025 for the production, integration, assembly, test and delivery of towed arrays as well as engineering services for repairs and refurbishment of existing towed arrays. This contract includes options which, if exercised, would bring the cumulative value of this contract to an estimated $286,797,228. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $300,000 will be obligated at time of award and will expire at the end of the current fiscal year. Fiscal 2019 other procurement (Navy) funding in the amount of $9,008,489 and fiscal 2020 other procurement (Navy) in the amount of $2,201,055 will not expire at the end of the current fiscal year. This contract was not competitively procured because it is a sole-source acquisition pursuant to the authority of 10 U.S. Code 2304(c)(1) with only one responsible source (Federal Acquisition Regulation subpart 6.302-1). The Naval Information Warfare Systems Command, San Diego, California, is the contracting activity (N00039-20-C-0003). VSE Corp., Alexandria, Virginia, is awarded a $10,034,417 firm-fixed-price contract with cost contract line items for materials, shipping and travel to support the procurement of equipment maintenance and test support services. This contract will provide vehicle maintenance and configuration support for the Assault Amphibious Vehicle and Amphibious Combat Vehicle family of vehicles in support of Program Executive Officer Land Systems, Quantico, Virginia. Work will be performed in Caroline County, Virginia, and is expected to be completed in April 2021. Fiscal 2020 operations and maintenance (Marine Corps) funds in the amount of $240,000, fiscal 2020 procurement (Marine Corps) funds in the amount of $2,772,662 and fiscal 2020 research development test and evaluation (Marine Corps) funds in the amount of $1,507,003 will be obligated at the time of award. Fiscal 2020 operations and maintenance (Marine Corps) funds in the amount of $240,000 will expire at the end of the current fiscal year. This contract was not competitively procured and was prepared in accordance with Federal Acquisition Regulation 6.302-1 and 10 U.S. Code § 2304(c)(1). The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-20-C-0030). RQ Construction LLC., Carlsbad, California, is awarded an $8,634,814 for a firm-fixed-price contract modification under indefinite-delivery/indefinite-quantity multiple award construction contract task order (N40085-19-F-7171) for construction services for the Mariner Skills Training Center at Naval Station Norfolk. Work will be performed in Norfolk, Virginia, and is expected to be completed by August 2021 and provides construction services for site work, rough grade, pile caps and grade beams. The total contract amount after exercise of this option will be $9,009,814. Fiscal 2020 military construction and Navy contract funds will be obligated on this award and will not expire at the end of the current fiscal year. This contract was competitively procured by a multiple award construction contract with six proposals received. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-19-D-9069). RIBCRAFT USA LLC,* Marblehead, Massachusetts, is awarded an $8,477,452 for a firm-fixed-price delivery order to previously awarded contract N00024-19-D-2220 for construction of 10 Expeditionary 11 Meter Rigid Hull Inflatable Boats (RIB). Work will be performed in Marblehead, Massachusetts, and is expected to be completed by April 2022. With these 10 boats, 17 of the 48 possible RIBs will be under contract. The base contract also included options for associated support efforts related to the construction and delivery for crew familiarization, special studies, engineering and industrial services and provisioned items orders. Fiscal 2020 other procurement (Navy) funding in the amount of $8,477,452 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Bell Helicopter Textron Inc., Fort Worth, Texas, is awarded an $8,346,395 firm-fixed-price modification (P00013) to a previously awarded fixed-price-incentive-fee contract (N00019-17-C-0030). Work will be performed in Fort Worth, Texas, and is expected to be completed in December 2020. This modification provides for the production and delivery of a fully assembled flight training device for an AH-1Z attack helicopter, excluding software integration, for the government of Bahrain. Foreign military sales funds in the amount of $6,259,796 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. DEFENSE LOGISTICS AGENCY Medical Digital Developers LLC, doing business as D-Scope Systems, New Rochelle, New York, has been awarded a maximum $45,000,000 firm‐fixed‐price, indefinite‐delivery/indefinite‐quantity contract for supply integrated video imaging sharing systems and other available items for these systems. This was a competitive acquisition with five responses received. This is a five-year contract with no option periods. Location of performance is New York, with a Feb. 27, 2025, performance completion date. Using customers are Army, Navy, Air Force and other 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 (SPE2D1‐20‐D‐0004). White Hand Global LLC,* Harrisonburg, Virginia, has been awarded a maximum $8,698,744 indefinite-delivery/indefinite-quantity contract for Bradley Fighting Vehicle metering fuel pump. This was a competitive acquisition with five responses received. This is a five-year contract with no option periods. Location of performance is Indiana, with a June 29, 2025, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-20-D-0069). UPDATE: Rosenbauer America LLC,* Lyons, South Dakota (SPE8EC-20-D-0055) has been added as an awardee to the multiple award contract issued against solicitation SPE8EC-17-R-0006 announced April 19, 2017. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2098309/source/GovDelivery/

by Vern Kakoschke February 2020 Introduction Defence procurement in Canada has had some well-known challenges in recent years. Many commentators have suggested possible strategies for fixing the defence procurement system. The identified problems include overspending on defence programs, unnecessary and undue delays in re-equipping Canada's fleet of aircraft, ships and ground transport, and defence budgets that remain unspent. The problems also include procuring authorities experiencing a shortfall in manpower and expertise, the inability to execute on defence procurements, unjustified sole-sourcing without a proper competition, political interference in selection issues, and the list goes on. The proposed solutions often address process-related matters: establish a single agency responsible for defence procurement or perhaps a cabinet secretariat to manage the involvement of three of four government departments who are often not on the same page. To date, not much has been written or discussed in public policy forums on a critical question: How should the necessary capital assets be financed? At one extreme, Canada could simply write a cheque and pay for them up front, thereby placing the assets on Canada's balance sheet. At the other extreme, Canada could drop the financing obligation into the laps of private-sector bidders and let them worry about the most efficient way of raising the necessary capital. A middle-ground solution could involve a public-private partnership (P3) structure, a model which seeks to balance the interests of the public and private sectors in a manner that leads to a better solution for all parties. Any public policy discussion often begins with first principles. What is the government's policy objective? It is to procure the best available equipment, with the most benefit to the Canadian economy or local interest groups and at the lowest possible cost. All three goals must be balanced in a manner that is politically acceptable, meets budget constraints and withstands public scrutiny. In major procurements, capital can be the largest single cost of a defence procurement. Conventional wisdom is that Crown debt is by far the cheapest financing alternative for any new program that requires the acquisition of capital assets. The Crown issues Government of Canada (GoC) bonds for a term that matches the expected useful life of the capital assets and the interest rate does not include a risk premium or credit spread (often called “Canada's flat”). Canada purchases the capital assets and then, if necessary, makes them available for use by a private-sector operator under a lease or loan arrangement as government-furnished equipment (GFE). The fixed-wing search and rescue (FWSAR) program is an example of a procurement in which Canada simply paid for the aircraft up front with the related maintenance services (in-service support) for the assets being funded over a long period of time. The government ownership model is simple, straightforward and enjoys the lowest capital cost. But it has two serious drawbacks. First, the GoC bonds are consolidated on the Crown's balance sheet with other Crown debt. This brings them to the attention of the major rating agencies. If the total Crown debt increases beyond acceptable rating norms, rating agencies will typically downgrade Canada's credit rating with the result that the interest rate on future GoC bond issuances will rise. Increased Crown debt may also lead to a politically unpalatable higher budget deficit. Second, the Crown typically selects the appropriate capital assets, a decision that is fraught with risk and intense public scrutiny. Politicians likely dread having to make such decisions. In a scenario where the capital assets can be bundled with required services, the Crown may prefer to procure only the services and leave the related asset selection up to the successful proponent. If the service provider bears the debt service costs and they are simply embedded into the price for services, then the program's cost can be booked in the Crown's operating budget and not its capital budget. Capital budgeting decisions tend to receive a much higher level of public scrutiny than changes to the annual operating budget. Milestone payments made to the successful proponent that are tied to the delivery of a portion of the capital assets can be buried in operating budgets. Relatively low milestone payments may not attract public scrutiny whereas higher payments in a material amount likely would. Historical Perspective The financing for the NATO Flight Training in Canada program (NFTC) can offer some historical perspective. In 1994, Bombardier made an unsolicited proposal to provide contractor-supported jet pilot training in Canada.1 The proposal contemplated certain novel economies of scale for the high fixed cost of establishing a training program. The acquisition costs and non-recurring charges would be amortized over trainees from the Canadian air force and from the air forces of participating NATO nations, thereby resulting in a lower cost per student. Less well-known was the proposal's financing package: the program's entire capital cost would be financed in a manner that was “off-balance sheet” to Canada and to Bombardier. It became known as the Milit-Air financing as it involved the establishment of a special purpose entity (SPE) called Milit-Air Inc., a not-for-profit corporation. In 1997, the Canadian government awarded Bombardier a 20-year service contract for the NFTC program, valued at $2.85 billion. Under the service contract, Bombardier was responsible for providing fully serviced aircraft, flight simulators, training content, and airfield and site-support services to the Department of National Defence (DND). Milit-Air financed all the capital assets pursuant to a bond issue to institutional investors and then leased them to Bombardier. The Milit-Air financing was completed in two tranches: the first tranche in the amount of $720 million of amortizing secured bonds was issued in 1998 and the second tranche in the amount of $106 million was issued in 2002.2 The financings coincided with the obligations to pay equipment suppliers such as Raytheon for the T-6A aircraft and British Aerospace for the Hawk 115 aircraft that were required for the training program. The SPE purchased the capital assets and leased them to Bombardier who in turn provided services to Canada in exchange for firm fixed fees and variable fees. The fixed portion of the service contract payments were “hell-or-high-water” obligations of Canada and were assigned by way of security to the SPE so that it could service the debt on the outstanding bonds. The complex financing structure is described in detail in a 2002 decision of the Ontario Securities Commission.3 The OSC concluded that the distribution of the bonds was exempt from provincial prospectus requirements even though the financing did not fall within an exemption for government debt: “the arrangements do not constitute a direct obligation of Canada to make payments on the bonds or a collateral obligation of Canada in the nature of a guarantee.” In other words, Canada did not guarantee the payments to bondholders and hence under then-applicable accounting principles, the total debt of $826 million was not consolidated with Crown debt.4 The Milit-Air financing was widely considered in financing circles to be an innovative and cutting-edge transaction well ahead of its time. Why was it admired? Standard & Poor's (S&P) rated the Milit-Air bonds. S&P rated most financing transactions involving a service contract structure and an SPE as an accommodation party at one or more notches below the then-current rating of the sponsoring government.5 Milit-Air was a rare exception. S&P awarded the Milit-Air bonds a AAA rating, the same rating as GoC bonds.6 In other words, Canada and the procuring authority for the NFTC capital assets could have its cake and eat it too: the Milit-Air bonds were not shown in the consolidated accounts of Canada as Crown debt and yet the interest rate on the bonds was the same as what Canada would have paid if it had issued GoC bonds. This was an impressive result that likely resulted in interest cost savings over the full term measured in the millions of dollars. Unfortunately, the auditor general of Canada did not see it that way. In his 1999 annual report, the AG found that the decision to award a sole-sourced contract to Bombardier (which contract was assumed by CAE Inc. in 2015) “was not adequately justified”. The AG reviewed the financing arrangement and found it to be lacking, primarily due to the fact that Canada was on the hook for the debt servicing charges even if no services were being provided. The risks were not justified in the AG's view: “The main risk is that if Milit-Air Inc were ever to become insolvent, National Defence would face the drastic consequence of losing its access to the planes while continuing to pay the firm fixed fees.”7 Perhaps the AG did not appreciate that the SPE was designed to be bankruptcy-remote and that an insolvency of Milit-Air was highly remote. The AG would have much preferred if Canada had simply purchased the capital assets outright and supplied them to the contractor as GFE. The AG also failed to acknowledge that if Canada had used the GFE approach, it would have been responsible for the debt servicing charges on the GoC bonds in any event. On an incremental risk basis, it may be that the benefits of the financing in terms of lower interest costs outweighed the incremental risks. In subsequent years, the AG continued to criticize the NFTC program and its financing. In 2002, the AG concluded that the profit margin built into the NFTC contract was excessive and could not be justified. In 2006, the AG calculated that the Crown paid about $39 million for training that it could not use. In his 2006 annual report, the AG stated that the Crown was “less than successful in obtaining foreign student commitments”. The mandarins at Public Services and Procurement Canada (PSPC) likely got the message: they would probably never again attempt a highly structured financing such as Milit-Air in a defence procurement and risk incurring the AG's wrath. A chill fell on the procuring authority. In 2003, the pendulum in respect of defence procurement contracts swung in the opposite direction. Canada released a Request for Proposals (RFP) for a contract to provide long-term primary helicopter and multi-engine fixed-wing pilot training at Southport, Manitoba. The RFP incorporated the AG's recommendations that the next training contract should have payments tied to performance and value received. The AG reviewed the draft RFP for the primary training project and found that payments would be based on milestones: “If the contractor fails to achieve the milestones, this could result in payment holdbacks and forfeiture. Incentives are also in place for good performance.”8 In 2005, Canada announced that a relatively unknown Western Canada-based aerospace company was the winner and awarded the contracted flying training support (CFTS) contract, subject to confirmation that the winner (a relatively small private company) could raise the financing.9 Details of the CFTS financing are not publicly available, apart from the fact that a $137.5-million transaction was concluded at the time of contract award.10 The Enron Debacle The Enron scandal in 2001 changed the landscape for Milit-Air style financings.11 Enron filed for bankruptcy and its accounting firm, Arthur Andersen, was dissolved. The CFO of Enron went to jail. One of the causes of their downfall was Enron's use and abuse of SPEs that enabled the company to hide hundreds of millions in liabilities from its shareholders and lenders. Largely as a result of the Enron debacle, the U.S. accounting regulator (the Financial Accounting Standards Board) changed the accounting rules to make it more difficult, if not impossible, to use off balance-sheet financing structures.12 Most large Canadian corporations that had taken advantage of such financing structures promptly reversed course and consolidated their SPEs' debt. It is not clear from the public record whether the AG also responded to the change in accounting standards by adding the outstanding Milit-Air bonds to Crown debt in the Crown's audited accounts. Future Air Crew Training (FAcT) Program The competition for the next-generation training contract started in 2013. The Crown announced that it would combine the pilot training currently being provided under the NFTC program and the CFTS program together with air crew training for combat system officers and airborne electronic sensor operators into one massive procurement.13 A RFP is expected to be released in 2020 with a contract award expected in 2021. The Crown has made no mention in its public releases how the required capital assets are expected to be financed under the FAcT program. The four qualified bidders in the FAcT competition may be faced with uncertainty in bid preparation in that they may or may not be expected to provide the financing as part of the bidding process. The amount required to refresh or fund the FAcT program's capital assets will likely be significant: if the total capital cost of the two existing programs approached $1 billion over 20 years ago, the capital cost of a refresh could be well in excess of that amount. Such an onerous financing obligation could put smaller bidders at a disadvantage to larger multinational defence contractors. Public Private Partnerships (P3s) The P3 procurement model is an investor-friendly method of transferring risk for public infrastructure projects to the private sector and enabling a private-sector financing at an acceptable risk premium over GoC bonds.14 It is all about delivering value for money. Cash-strapped provinces have enthusiastically embraced the P3 model for the design, build, operation and maintenance (DBOM) of various projects in the health-care sector, social infrastructure such as hospitals, libraries and prisons, and transportation such as roads and bridges. Relatively few P3 projects have been completed at the federal level: the RCMP headquarters in Surrey, the Gordie Howe Bridge and the Communications Security Establishment Centre (CSEC) in Ottawa. It was unfortunate that the Liberal government in 2017 disbanded PPP Canada, a Conservative-created Crown corporation that encouraged P3s at the federal level. There is no reason why the P3 model could not be applied to defence projects, particularly if they involve a mix of capital assets and service delivery, as most P3s do. Security concerns can be overcome, as was evidenced in the CSEC project. There is no loss of government control over strategic assets in any P3 deal. Contracting practices for P3 deals have been well developed over the years and the investment community has accepted the risk allocation set out in commonly used P3 documentation. No need to reinvent the wheel with new and complex documentation when preparing a RFP. Other countries, such as the U.K. and Australia, have fully embraced the P3 model (known locally as PFIs or private finance initiatives) for defence procurement and yet Canada has not followed their lead, notwithstanding the demonstrable benefits that could be derived from such an approach.15 P3s are typically built on time and on budget as the risk of delays, cost overruns and non-performance are transferred to the successful proponent in the private sector. Lessons Learned When it is released, the RFP for the FAcT procurement will provide an interesting case study for whether Canada has learned any valuable lessons from the predecessor financings undertaken in the NFTC and the CFTS programs. Some shaping principles that could be helpful when designing a defence procurement involving significant capital assets (such as FAcT) include the following: Contemplate an investor-friendly financing for the capital assets. Unless Canada prefers to increase its budget deficit by a material amount, the RFP's terms should not scare off potential investors. By adopting best practices in the P3 industry, Canada could level the playing field when it comes to financing. Each bidder should have the same opportunity to raise the capital on the strength of the underlying service contract and not simply on the strength of its balance sheet. Unwind the Milit-Air financing. The Milit-Air bonds are nearing maturity but are still outstanding. The original purpose of the financing structure – off balance-sheet accounting treatment – has disappeared. The annual cost of maintaining a not-for-profit corporation cannot be insignificant. This cost could be avoided by unwinding the financing in a manner that involves Canada stepping up to assume the obligations under the bonds as a direct obligation of the Crown. This could well facilitate transition issues between the existing NFTC assets and the refreshed assets. Involve the auditor general in the RFP design process. The AG made numerous helpful recommendations in his reports regarding the NFTC program, many of which remain valid concerns today. Has the AG ever followed up and determined the current status of his recommendations? Better transparency would assist the bidders and their investors in risk assessment. Moreover, the expected accounting treatment for all parties concerned could usefully be reviewed by the AG and anticipated in the RFP. Reconsider the use of milestone payments. If Canada intends to partially contribute toward funding the capital cost in whole or in part, the contributions could take the form of progress payments rather than milestone payments. The former payments are considered to be earned when paid, whereas the latter are considered unliquidated advance payments (meaning the Crown could claw them back in certain circumstances). No investor will wish to invest in a project where the Crown has a prior claim on the same assets funded by an investor. The AG may also consider the accounting treatment of such milestone payments, as they may in some cases be treated as being on capital account rather than on income account and buried in a government department's operating budget. Provide certainty for bidders in the RFP process. Uncertainty is the enemy of a cost-effective program. If bidders are given advance notice of the essential terms of a procurement, they can plan accordingly, including preparing for a financing that will likely require substantial amounts of debt and equity from the investment community. Any necessary governmental approvals, including from Treasury Board, would be best sought at the start of a procurement process. Leaving the funding approvals to the end as an after-thought would not be helpful. Defence procurements are large and complex. Financing considerations should be taken into account as early in the procurement process as possible. The failure to consider the appropriate financing approach for major capital assets could well add millions to an already costly program. Conversely, a properly structured procurement and related financing could save the Crown many millions in terms of the cost of capital. End Notes 1 National Defence and the Canadian Armed Forces, “NATO Flying Training in Canada: An Innovative Solution for NATO Flying Training Requirements,” Sept. 7, 1998. Available at http://www.forces.gc.ca/en/news/article.page?doc=nato-flying-training-in-canada-an-innovative-solution-for-nato-flying-training-requirements/hnlhlxhd 2 Offering Memoranda dated May 5, 1998 and June 25, 2002 issued by Milit-Air Inc. and its financial advisor and underwriter, Scotia Capital Markets. 3 In the Matter of Scotia Capital Inc. and Milit-Air Inc. Available at https://www.osc.gov.on.ca/en/SecuritiesLaw_ord_200220628_2113_scotiacapital.htm 4 The auditor general concluded in his 1999 annual report that Milit-Air was an independent organization and not subject to the control of Canada or Bombardier. In the result, the debt appeared on the balance sheet of Milit-Air Inc., but not on any other party's balance sheet. 5 The reason for the lower rating is that the payment stream under the service contract could be caught up in a service provider's bankruptcy and hence the payment flows to the bondholders could theoretically be interrupted. 6 Standard & Poors Rating Direct Report (Oct. 11, 2007). 7 1999 September and November Report of the Auditor General of Canada – Case Study 27.1-NATO Flying Training in Canada. 8 May 2006 Report of the Auditor General of Canada. 9 National Defence and the Canadian Armed Forces, “Backgrounder on CFTS,” March 30, 2005. Available at www.forces.gc.ca/en/news/article.page?doc=contracted-flying-training-and-support-cfts/hnocfoke 10 McCarthy Tétrault LLP. Available at https://www.mccarthy.ca/ 11 Many corporations in capital-intensive industries were taking advantage of off balance-sheet financing structures at that time. In such financings, the debt was typically issued by a special purpose entity that was not controlled (de jure control) by the sponsoring corporation. Hence the debt that the SPE issued was not consolidated with the sponsoring corporation's debt even though the latter was indirectly responsible for the debt servicing, typically through lease payments to the SPE. As a result, the sponsoring corporation did not put any stress on its financial covenants with its lenders and it also avoided the payment of capital tax which was based on the corporation's stated liabilities. 12 In 2009, FASB issued Interpretation FIN 46(R) entitled “Consolidation of Variable Interest Entities”. If an SPE qualified as a VIE under a new substantive test (rather than control test), the VIE's debt would have to be consolidated with the debt of the primary beneficiary (i.e., the sponsoring corporation). The Canadian accounting regulator soon followed suit with the publication of Accounting Guideline AcG-15 (Consolidation of VIEs). 13 FAcT website: www.tpsgc-pwgsc.gc.ca/app-acq/amd-dp/air/snac-nfps/ffpn-fact-eng.html 14 Many P3 projects have been financed at interest rates based on the then-prevailing applicable GoC bond rate plus a credit spread of 150 -200 bps. 15 The benefits have been well documented by the Canadian Council for PPPs in numerous published studies. About the Author Vern Kakoschke is Managing Director of Gothic Strategic Solutions Inc. (www.gothicsolutions.ca). He provides consulting services in the aerospace and defence sector and advises on complex structured financings, including tax-advantaged financings. Vern has 30+ years experience practising law in Toronto and in the investment banking industry where he completed several novel financing transactions for major capital assets involving aircraft, rail, power and infrastructure assets. He retired last year from a senior management role at KF Capital (owner of KF Aerospace), including as a director of SkyAlyne Canada LP (one of the bidders for FAcT) and was formerly the finance lead on the SkyAlyne bidding team. https://www.cgai.ca/financing_capital_assets_the_missing_link_in_defence_procurement

Dulles, Va., February 26, 2020 /PRNewswire/ - Raytheon Company (NYSE: RTN) and IronNet Cybersecurity Inc. have announced plans to develop cyber solutions for the defense of operational and information technology (OT/IT) systems. These solutions would integrate managed security services with advanced analysis and threat sharing tools including IronNet's collective defense platform, and its network traffic analysis software, to potentially bring new solutions for enterprise protection. The combined solutions are designed to be part of a collective defense offering for critical infrastructure and national security networks and systems. These solutions offer hardening of OT/IT platforms to increase resiliency for systems that orchestrate sensing, control, networking and analytics to interact with the physical world, and enable safe, secure and adaptable performance. John DeSimone, vice president of Cybersecurity and Special Missions at Raytheon Intelligence, Information and Services, said: "Protecting critical infrastructure is no longer a private sector concern, but a national security imperative. We know malicious actors seek to disrupt global economies through attacks on technology systems that keep our lights on, food supplies safe and militaries prepared. This partnership offers the integration of advanced cyber products and operations experience to the global market." GEN (Ret.) Keith Alexander, co-CEO and founder of IronNet Cybersecurity, said, "Considering the role Raytheon plays in securing government agencies, global businesses, and even nations, we are excited to work together as we shift the cybersecurity defense paradigm from one that sees organizations defending alone to one that operates as a part of a collective. We can all benefit from working together to increase the visibility we have into incoming threats, sharing that information, and defending more quickly." About IronNet IronNet Cybersecurity is revolutionizing how enterprises, industries, and governments secure their networks. As sophisticated cyber anomalies are detected through IronNet's network traffic analysis platform, alerts are generated and shared quickly, safely and anonymously across collective defense members. These events are then correlated across industry peers in real time, giving members faster visibility into potential threat campaigns. About Raytheon Raytheon Company, with 2019 sales of $29 billion and 70,000 employees, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. With a history of innovation spanning 98 years, Raytheon provides state-of-the-art electronics, mission systems integration, C5I® products and services, sensing, effects, and mission support for customers in more than 80 countries. Raytheon is headquartered in Waltham, Massachusetts. Follow us on Twitter. Media Contact Raytheon Rachael Duffy 571-888-6539 Rachael.L.Duffy@raytheon.com View original content to download multimedia:http://www.prnewswire.com/news-releases/raytheon-collaborates-with-ironnet-on-cyber-defense-for-critical-infrastructure-301011978.html

February 27, 2020 - The U.S. Marshals Service (USMS), a component of the U.S. Department of Justice, has selected BAE Systems for a $126 million task order1 to provide mission critical sustainment and engineering services to the USMS' Information Technology (IT) Division. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200227005087/en/ “We are a leading systems integrator with strong experience unifying the people, processes, and tools needed to deliver advanced solutions for our nation's IT security challenges,” said Mark Keeler, vice president and general manager of BAE Systems' Integrated Defense Solutions business. “We have supported the U.S. Department of Justice for more than two decades and look forward to partnering with the U.S. Marshals in their critical mission.” Through this task order, BAE Systems will provide IT infrastructure engineering, deliver full lifecycle operations, and execute comprehensive portfolio management. The company will also provide service desk support and modernize IT tools and capabilities through cloud service innovations and process improvement. The task order was awarded under the National Institutes of Health (NIH) Information Technology Acquisition and Assessment Center's Chief Information Officer–Solutions and Partners 3 (CIO-SP3) Government-Wide Acquisition Contract. CIO-SP3 is an Indefinite Delivery/Indefinite Quantity contract. This contract is intended to provide information technology solutions and services. BAE Systems delivers a broad range of services and solutions enabling militaries and governments to successfully carry out their respective missions. The company provides large-scale systems engineering, integration, and sustainment services across air, land, sea, space, and cyber domains. BAE Systems takes pride in its support of national security and those who serve. 1 U.S. Marshals Service Functional Operations and Resources for Core Enterprise (FORCE) Services Contract PO: 15UC0C19F00002697 / DJU4500576263. View source version on businesswire.com: https://www.businesswire.com/news/home/20200227005087/en/

ARMY Lockheed Martin Corp., Grand Prairie, Texas, was awarded a $1,142,750,791 modification (P00038) to contract W31P4Q-18-C-0049 for Guided Multiple Launch Rocket Systems. Work will be performed in Grand Prairie, Texas, with an estimated completion date of Sept. 30, 2022. Fiscal 2018, 2019 and 2020 procurement appropriations, Army, and 2020 Foreign Military Sales (Romania and the Republic of Korea) funds in the combined amount of $1,142,750,790.62 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. CBRE, Cleveland, Ohio (W912DY-20-D-0055); EMCOR, Arlington, Virginia (W912DY-20-D-0024); Facilities Services Management Inc.,* Clarksville, Tennessee (W912DY-20-D-0056); Quality Services International LLC,* San Antonio, Texas (W912DY-20-D-0057); Hospital Housekeeping Systems LLC, Dripping Springs, Texas (W912DY-20-D-0058); Sodexo Management Inc., Gaithersburg, Maryland (W912DY-20-D-0059); Valiant Government Services, Hopkinsville, Kentucky (W912DY-20-D-0060); J&J Worldwide Services, Austin, Texas (W912DY-20-D-0061); VW International,* Alexandria, Virginia (W912DY-20-D-0062); and Zero Waste Solutions, Concord, California (W912DY-20-D-0063), will compete for each order of the $396,000,000 firm-fixed-price contract to provide specialized services to support Army, Air Force, Navy and Defense Health Agency medical facilities throughout the U.S. and outside the U.S. (Republic of Korea, Japan, Thailand, Germany, England, Portugal, Turkey and Italy). Work locations and funding will be determined with each order, with an estimated completion date of Feb. 26, 2025. U.S. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity. Raytheon Integrated Defense Systems, Huntsville, Alabama, was awarded a $92,000,000 cost-no-fee, firm-fixed-price, fixed-price-level-of-effort contract for the Army Integrated Air and Missile Defense Plug & Fight A-Kit, materials and support. 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 Feb. 29, 2024. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-20-F-0150). R. C. Construction Co. Inc., Greenwood, Alabama, was awarded a $30,127,950 firm-fixed-price contract for construction of a 3,850 square foot pre-engineered building. Bids were solicited via the internet with four received. Work will be performed in Hurlburt, Florida, with an estimated completion date of Feb. 14, 2023. Fiscal 2018 military construction, Army funds in the amount of $30,127,950 were obligated at the time of the award. U.S. Army Corps of Engineers, Mobile, Alabama, is the contracting activity (W91278-20-C-0009). Accenture Federal Services, Arlington, Virginia, was awarded a $21,718,289 modification (P00032) to contract W52P1J-17-C-0022 to exercise option period two of the General Fund Enterprise Business System - Sensitive Activities. Work will be performed in Arlington, Virginia, with an estimated completion date of May 31, 2021. Fiscal 2020 research, development, test and evaluation, Army and operations and maintenance, Army funds in the amount of $21,718,289 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. General Dynamics Land Systems, Sterling Heights, Michigan, was awarded an $18,026,834 modification (P00099) to contract W56HZV-17-C-0067 for Abrams systems technical support. Work will be performed in Sterling Heights, Michigan, with an estimated completion date of Feb. 26, 2021. Fiscal 2019 procurement of weapons and tracked combat vehicles, Army; 2020 operations and maintenance, Army; 2020 Foreign Military Sales (Kuwait); and 2020 Army working capital funds in the amount of $18,026,834 were obligated at the time of the award. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity. NAVY Raytheon Missile Systems Inc., Tucson, Arizona, is awarded a $90,421,317 cost-plus-incentive-fee contract for the engineering and manufacturing development (EMD) phase of the Joint Multiple Effects Warhead System (JMEWS). The EMD effort includes the design, integration, test and evaluation of the JMEWS. Work will be performed in Tucson, Arizona (79%); Cincinnati, Ohio (15%); Plymouth, Minnesota (3%); and Rocket Center, West Virginia (3%), and is expected to be completed by November 2023. Fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $1,162,342 and fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $6,374,456 will be obligated at time of award, $1,162,342 of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to Federal Acquisition Regulation 6.302-1. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-20-C-0004). DZSP 21 LLC, Marlton, New Jersey, is awarded a $60,187,207 cost-plus-fixed-fee contract modification to add and exercise a 6-month option period for base operating support (BOS) services at Joint Region Marianas. After award of this option, the total cumulative contract value will be $199,520,375. Work will be performed at various locations on the island of Guam, and is expected to be completed by August 2020. The work will provide facility and BOS for the following services: management and administration, port operations, ordnance, material management, facility management, sustainment, restoration and modernization, electrical, wastewater, steam, hot water and demineralized water, potable water, transportation and environmental. Fiscal 2020 working capital funds (Defense); fiscal 2020 transportation Air Force working capital funds; fiscal 2020 operations and maintenance (Navy, Air Force, Defense); fiscal 2020 family housing operations and maintenance (Navy); fiscal 2020 operations and maintenance (Marine Corps, Army, Army National Guard and Air National Guard); fiscal 2020 health program funds (Defense); fiscal 2020 General Fund; and fiscal 2020 commissary agency (Defense) contract funds in the amount of $60,187,207, of which $56,278,824 will be obligated on this award, $3,908,383 will be incrementally funded, and all will expire at the end of the current fiscal year. This contract modification was issued as a sole-source procurement under the authority of 10 U.S. Code 2304(c)(1) as implemented by Federal Acquisition Regulation 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Facilities Engineering Command, Pacific, Pearl Harbor, Hawaii, is the contracting activity (N62742-19-C-1175). Cass Holdings LLC,* Oklahoma City, Oklahoma, is awarded a $43,516,006 firm-fixed-price indefinite-delivery/indefinite-quantity contract. This contract provides for the refurbishment of AM2 Matting packages to include Landing Matting (F71/F72), Heavy Duty Matting (F73) and Spacer Matting (F78) in accordance with Naval Air Systems Command drawing package instructions and directives in support of the aircraft launch and recovery equipment's expeditionary airfield program. Work will be performed in Oklahoma City, Oklahoma, and is expected to be completed in February 2025. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was competitively procured via Federal Business Opportunities; two offers were received. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-20-D-0015). Raytheon Co., McKinney, Texas, is awarded a $23,287,384 cost-plus-fixed-fee contract for the naval surveillance application upgrade. This contract provides for improving radio frequency (RF) sensors on naval surveillance applications. The improvements will potentially provide increased SWPC (size, weight, power and cooling), modular open system architectures and resolution against small maritime/air targets, detection of moving targets in synthetic aperture radar imagery and the formulation and extraction of other detection and classification features. Further, these improvements may demonstrate multi-source autonomous surveillance capabilities in support of the RF detection, tracking and identification thrust area. Work will be performed in McKinney, Texas, and is expected to be completed by Feb. 2024. The total cumulative value of this contract is $23,287,384. The base period is $23,287,384 and no options were proposed. The action will be incrementally funded with an initial obligation of $2,931,730 utilizing fiscal 2020 research, development, test and evaluation (Navy) funds, and will not expire at the end of the current fiscal year. This contract was competitively procured under N00014-19-S-B001, "Long Range Broad Agency Announcement (BAA) for Navy and Marine Corps Science & Technology." Since proposals are received throughout the year under the Long Range BAA, the number of proposals received in response to the solicitation are unknown. The Office of Naval Research, Arlington, Virginia, is the contracting activity (N00014-20-C-1018). BAE Systems Information and Electronic Systems Inc., Nashua, New Hampshire, is awarded a $21,380,547 firm-fixed-price, cost-plus-fixed-fee, cost contract to provide hardware, technical engineering, management and logistics support associated with the fabrication, assembly, test and delivery of 235 T-1622/ALE-55(V) Fiber Optic Towed for the Navy and foreign military sales (FMS) customers. Work will be performed in Nashua, New Hampshire (48%); Chelmsford, United Kingdom (12%); Mountain View, California (6%); Rochester, New York (4%); San Diego, California (4%); Landenberg, Pennsylvania (3%); Hamilton, New Jersey (2%); Commerce, California (2%); Los Osos, California (2%); Toledo, Ohio (1%); various locations within the continental U.S. (16%), and is expected to be completed by March 2022. Fiscal 2020 procurement of ammunition (Navy and Marine Corps) funds in the amount of $13,752,949 and FMS funds in the amount of $7,627,598 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to 10 U.S. Code 2304(c)(1). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-20-C-0042). Melwood Horticultural Training Center Inc., Upper Marlboro, Maryland, is awarded $19,007,322 for an indefinite-delivery/indefinite-quantity contract under the AbilityOne program for custodial, recycling and grounds maintenance support for all labor, management, supervision, tools, materials and equipment required to perform facility investment services for federal installations located within a 100-mile radius of the National Capitol Region (NCR). Work will be performed at various installations in and around the NCR. This contract covers the period from March 2020 to February 2021. No funds will be obligated at time of award. Fiscal 2020 operations and maintenance, (Navy) in the amount of $15,504,479.00 for recurring work will be obligated on individual task orders issued during the option year two period. The Naval Facilities Engineering Command, Washington, District of Columbia, is the contracting activity (N40080-18-D-0306). Forward-looking Infrared (FLIR) Surveillance Inc., Wilsonville, Oregon, is awarded a $16,108,026, firm-fixed-price, indefinite-delivery/indefinite-quantity contract for repairs of sensor systems, procurement of spare parts, upgrades and engineering services that are in direct support of the Ground Based Operational Surveillance System program. Work will be performed in Wilsonville, Oregon (70%) and Taby, Sweden (30%), and is expected to be completed by February 2025. This action supports the Marine Corps System Command G-BOSS program's FLIR optical sensor systems: the Star SAFIRE III ™ (Gyro-Stabilized Long-Range Thermal Infrared Imaging Sensor System) and the THV-3000™ (Pan and Tilt Long-Range Thermal Imaging Sensor System). The integrated sensors detect, assess and help personnel at risk to counter or avoid improvised explosive devices and other insurgent activities in major combat operations, irregular warfare and military support of stability, homeland defense and civil support operations. This is a sole-source action in accordance with Federal Acquisition Regulation 6.302-1, only one responsible source. FLIR Surveillance Inc. is the original equipment manufacturer. No other supplies or services will satisfy agency requirements. Fiscal 2020 operations and maintenance (Marine Corps) funding in the amount of $1,866,654 will be obligated at award and will expire at the end of the current fiscal year. The Naval Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity. R.E. Staite Engineering Inc.,* San Diego, California, is awarded a $15,261,525 firm-fixed-price task order N62473-20-F-4350 under a multiple award construction contract for maintenance dredging at Naval Base San Diego. The task order also contains two unexercised options, which if exercised would increase cumulative task order value to $15,363,685. Work will be performed in San Diego, California, and is expected to be completed by September 2022. The work will provide for the maintenance dredging to Pier 10 slip, mouth of Chollas Creek, approach corridor for Navy small craft vessels and tug-boats, north approach corridor from Pier One to north of Pier Eight, and south approach corridor from south of Pier Eight to south of Pier 13 to re-establish the design operational and berthing depth required for Navy ships and other vessels. The project also includes ocean disposal material turbidity curtain and additional dredging costs associated with a monitoring station identified in specification. The options, if exercised, provides for water quality monitoring and reporting identified in the specification and on-site qualified biologist identified in the specification. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $15,261,525 are obligated on this award and will expire at the end of the current fiscal year. Four proposals were received for this task order. The Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity (N62473-16-D-1806). Huntington Ingalls Industries, Newport News Shipbuilding Division, Newport News, Virginia, is awarded a $14,999,841 cost-plus-fixed-fee modification to previously-awarded contract N00024-18-C-4314 for continued advance planning and availability preparations for the fiscal 2020 USS Boise (SSN 764) engineered overhaul. Work will be performed in Newport News, Virginia, and is expected to be completed by May 2020. The contracted requirements include continued advance planning pre-availability preparations necessary to repair and maintain unrestricted operation of the submarine, as well as upgrades and modernization efforts required to ensure the submarine is operating at full technical capacity as defined in the availability work package during this Chief of Naval Operations-scheduled availability. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $14,999,841 will be obligated at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Moran Towing Corp., New Canaan, Connecticut, is awarded a $14,597,547 option in the contract (N32205-19-C-3503). The option is a firm-fixed-price contract with reimbursable elements to support Military Sealift Command's service support program for the time charter services of eight tugboats. The tugboats will be capable of ship handling, docking and undocking in the Norfolk, Virginia, harbor and surrounding waters. This is option one of the current contract and includes a one-year-firm period of the performance, three one-year options periods and one 11-month option period. The cumulative value of this contract, if all options are exercised, is $74,005,396. Work will be performed in Norfolk, Virginia, and surrounding waters, and is expected to be completed if all options are exercised by January 2024. Working capital funds (Navy) in the amount of $8,558,561 for option one are currently available for performance under this contract action. Funds in the amount of $6,038,985 for the remainder of option one are to be provided for fiscal 2021 and are subject to the availability of funds in accordance with Federal Acquisition Regulations 52.232-18 availability of funds. This procurement was released under full and open competition, with an unlimited number of companies solicited via the Beta.SAM.Gov website and with one offer received. The Military Sealift Command, Norfolk, Virginia, is the contracting activity (N32205-19-C-3503). Alion Science and Technology Corp., Burr Ridge, Illinois, is awarded a $14,361,357 cost-plus-fixed-fee modification to exercise an option under a previously-awarded indefinite-delivery/indefinite-quantity contract N61331-18-D-0007. Work performance locations will be determined with each order and is expected to be completed by March 2023. Funds will be used for the development, integration, testing and evaluation of prototype systems into existing or emerging unmanned vehicles, unmanned weapons, unmanned weapons control systems related to mine warfare, amphibious warfare, surface warfare, diving and life support, coastal and underwater intelligence, surveillance and reconnaissance and other missions in the littoral and riverine environments. No funding will be obligated at time of award, but will be obligated at the time of delivery. The Naval Surface Warfare Center, Panama City Division, Panama City, Florida, is the contracting activity. Frontier Technologies Inc.,* Beavercreek, Ohio, is awarded a $12,808,653 cost-plus-fixed-fee indefinite-delivery/indefinite-quantity contract. This contract is a Phase III Small Business Innovation Research (SBIR) contract action for the procurement of airborne systems decision life cycle planning and analysis methods and tools. This contract includes options which, if exercised, may bring the cumulative value of this contract to $69,496,924. Work will be performed in San Diego, California (90%); Washington, District of Columbia (4%); Patuxent River, Maryland (3%); Norfolk, Virginia (2%); and Jacksonville, Florida (1%), and is expected to be completed by February 2021, and February 2025 if all options are exercised. The services under this contract support wide-ranging initiatives including information technology capabilities, communications, engineering, analysis, planning, assessment, design, hardware and software, operations and administration of network and communications systems for Naval Information Warfare Center Pacific. Fiscal 2019 research, development, test and evaluation (Navy) funding in the amount of $400,000 will be obligated at the time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 15 U.S. Code 638 (r)(1), as it is a Phase III Small Business Innovation Research for additional work to be performed after the Phase II SBIR period. The Naval Surface Warfare Center, Corona Division, Corona, California, is the contracting activity (N64267-20-D-0041). Serrano Construction and Development Corp.,* Dededo, Guam, is awarded a firm-fixed-price task order (N40192-20-F-4145) at $10,833,673 under an indefinite-delivery/indefinite-quantity, multiple award design-build construction contract. The work will provide renovation of enlisted personnel unaccompanied housing at buildings 25007, 25009, 25011, 25016 and 25017 on Andersen Air Force Base. Work will be performed in Yigo, Guam, and is expected to be completed by February 2024. The work provides the replacement of windows, door hardware, built-up roofing, roof ventilators and photocell devices, installation of covers for fire alarm pull stations and painting of areas affected by new work, and includes demolition and disposal of items affected by the renovation work. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $10,833,673 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, Marianas, Guam, is the contracting activity (N40192-18-D-2804). Arnold Defense and Electronics, Arnold, Missouri, is awarded $10,487,500 firm-fixed price modification to a previously awarded indefinite-delivery/indefinite-quantity contract N00174-19-D-0001 to exercise the option ordering period for the manufacturing of the 2.75-inch rocket launchers and subcomponents to support Navy, Army, Air Force and the governments of South Korea and Pakistan under the Foreign Military Sales program. This option exercise is for the manufacture of 2.75-inch rocket launchers and subcomponents to support the Army for the M260 and M261 Launchers; the Air Force for the LAU131 Series Launchers; the Navy for the LAU61 and LAU68 Series Launchers and the Intervalometers that will be utilized by all services. Work will be performed in Arnold, Missouri, and is expected to be completed by February 2021. No funding is being obligated at the time of award. The Naval Surface Warfare Center, Indian Head Explosive Ordnance Disposal Technology Division, Indian Head, Maryland, is the contracting activity. General Dynamics Bath Iron Works, Bath, Maine, is awarded a $7,713,504 cost-plus-award-fee modification to previously-awarded contract N00024-19-C-2322 to exercise options for the accomplishment of planning yard efforts such as engineering, technical, planning, ship configuration, data and logistics efforts for DDG 1000-class destroyers post-delivery and in-service life-cycle support. Work will be performed in Bath, Maine (95%), and San Diego, California (5%), and is expected to be completed by December 2020. This option exercise is for planning yard efforts which will provide Guided Missile Destroyer (DDG) 1000-class technical, engineering and support services, including emergent technical problem investigation and resolution, maintenance and modernization planning, integrated logistics support, configuration data management, maintenance, repair and/or overhaul availability planning and scheduling, modernization planning and scheduling, industrial yard/facility planning and scheduling and material orders, and fabrication and kitting. Fiscal 2020 shipbuilding and conversion (Navy) funding in the amount of $7,226,568 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. AIR FORCE Canadian Commercial Corp., Ottawa, Canada, has been awarded a $39,262,254 firm-fixed and cost-type contract with 100% subcontracting to Coulson Aircrane Ltd., Port Alberni, British Columbia, Canada. The contract award provides a 27 month period of performance. The location of performance is Port Alberni, British Columbia, Canada, and work is expected to be completed by Feb. 2022. Fiscal 2018 and 2019 procurement funds are being obligated at the time of award. The total cumulative face value of the contract is $39,262,254. The Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8504-20-C-0004). FlightSafety Services Corp., Centennial, Colorado, has been awarded a $33,151,551 not-to-exceed modification (P00038) to previously awarded FA8621-13-C-6247 for the exercise of the KC-46 Aircrew Training System production year 5 options. The contract modification is for the exercise of option contract line item numbers for two additional weapon system trainers, two boom operator trainers, fuselage trainer, fuselage trainer sprinkler system and installation, two pilot part task trainers, boom operator part task trainer, additional learning management workstations, fuselage trainer support equipment, McGuire and Altus Site Activations, systems engineering and program management, Visual Database Airfield Models and new refresher training scenarios. Work will be performed in Broken Arrow, Oklahoma, and is expected to be complete by Feb. 2022. Fiscal 2018 purchasing and procurement funds are being obligated at the time of award. The total cumulative face value of the contract is $280,871,734. The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. LMR Technical Group LLC, Fort Walton Beach, Florida, has been awarded a $7,053,303 contract for the Optimizing the Human Weapon System Services. The contractor provides services to increase the physical capacity of fighter aircrew, decreasing the rate of injuries and accelerating return to duty. Contractor personnel will work with active duty, Air National Guard, Air Force Reserve Component fighter aircrew to optimize physical performance targeting neck and back pain prevention while monitoring, analyzing and resolving physical readiness concerns. Work will be performed at multiple bases across the Air Combat Command, Pacific Air Forces, and United States Air Force Europe. The award provides services for the base year with a completion date of March 22, 2021. This contract is issued as a result of a competitive acquisition with ten offers received. Fiscal 2020 operations and maintenance funds are being obligated at the time of the award. Headquarters Air Combat Command, Acquisition Management and Integration Center, Joint Base Langley-Eustis, Virginia, is the contracting activity (FA4890-20-C-0005). DEFENSE LOGISTICS AGENCY Travis Association for the Blind,** doing business as The Lighthouse for the Blind, Austin, Texas, has been awarded a maximum $20,727,424 modification (P00022) exercising the second one-year option period of a two-year base contract (SPE1C1-17-C-B003) with three one-year option periods for warehousing, storage, logistics and distribution functions. This is a firm-fixed-price with economic-price-adjustment contract. Location of performance is Austin, Texas, with a Feb. 28, 2021, performance completion date. Using customers are Air Force, Marine Corps and Defense Logistics Agency. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. Marathon Medical Corp., Aurora, Colorado, has been awarded a maximum $12,600,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for hospital equipment and accessories for the Defense Logistics Agency electronic catalog. This was a competitive acquisition with 110 responses received. This is a five-year contract with no option periods. Location of performance is Colorado, with a Feb. 26, 2025, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-20-D-0031). Southern Counties Oil Co., doing business as SC Fuels, Orange, California, has been awarded a minimum $7,065,718 fixed-price with economic-price-adjustment contract for various types of fuel. This was a competitive acquisition with 39 responses received. This is a 54-month contract with one six-month option period. Location of performance is California, with a Sept. 30, 2024, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE605-20-D-4521). *Small business **Mandatory source https://www.defense.gov/Newsroom/Contracts/Contract/Article/2096872/source/GovDelivery/