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By: Joe Gould WASHINGTON — A Maryland congressman is launching a local consortium on Tuesday to link small and large aerospace and defense firms and educational institutions in the Pentagon's backyard — so the companies can solve common problems like workforce shortages. The Pentagon has identified the aging workforce as a challenge to country's defense industry, and it's playing out in Rep. Anthony Brown's district, which is near NASA Goddard Space Flight Center, a major space research laboratory, and Fort Meade, the home of U.S. Cyber Command. “When I think about the workforce shortages, it's not just the computer science engineer in high demand at Northrop's Linthicum facility, it's the welder down at Huntington Ingalls,” said Brown, D-Md., and a House Armed Services Committee member, told Defense News. “There has to be a public-private partnership.” After months of meeting with representatives of the defense industry, local economic development corporations, local school systems and institutions of higher education, Brown is launching the Maryland Defense and Aerospace Consortium as a means of spurring academia and industry collaborate — and to burnish the National Capitol Region's reputation as an A&D hub. The panel, made up of representatives from the Defense Department, industry, career and technical education organizations, and local universities, is meant to start a conversation and ultimately solve national security problems. The inaugural meeting of Maryland Defense and Aerospace Consortium, set for Tuesday on Capitol Hill, is due to host Army Undersecretary Ryan McCarthy. Full article: https://www.defensenews.com/news/pentagon-congress/2019/01/14/us-lawmaker-links-small-defense-firms-in-maryland

by Milton Ezrati Tokyo will begin to alter the security equation in the Western Pacific in the not-too-distant future. Long pacifist, Japan has decided to accelerate its military spending and effectively begin to gear up. It should hardly come as a surprise. Though Prime Minister Shinzo Abe has long sought to shift Japan from pacifism to what he calls a “normal country,” North Korea's missiles and China's aggressiveness in the Pacific would have left Tokyo little choice anyway. Spending has stepped up dramatically, as has planning. The nature of the buildup responds to other pressures from its great ally, the United States, which wants Japan to buy more U.S. equipment, as well as from the demographic and technological imperatives facing that nation. Even now, some seventy-two years after Douglas MacArthur directed the writing of the then defeated Japan's constitution, the document still limits the country's room to maneuver. Spending cannot exceed 1.0 percent of gross domestic product (GDP). Though clever accounting allows wiggle room, this rule nonetheless imposes a severe constraint especially next to China and the United States, each of which spend more than 3.0 percent of their much larger GDPs on defense. Because the constitution stresses defense exclusively, it naturally questions any preparation to project power, not the least the Ministry of Defense's (MoD) intention to construct two aircraft carriers and possibly base Japanese ground forces outside the country. The constitution also forbids Japan entering any mutual defense pact. Despite Japan's long-term alliance with the United States, it cannot go to America's aid if, for instance, a U.S. base in Asia was attacked. Prime Minister Abe has strived to change the constitution and has won concessions, but it remains a constraint. The MoD budget requests for 2019 nonetheless make clear the new military emphasis. According to documents published in September, the MoD is asking for ¥5.3 trillion ($48 billion) in overall defense outlays, which is 7.2 percent above the 2018 budgeted amount. A jump like that would be noteworthy in any country, but especially so in Japan, where heretofore defense spending grows by fractions of a percent per year. Five-year plans would sustain this heightened level of spending. Still more interesting is the proposed allocation of these funds. Here, each point reflects the various pressures on Japan. North Korea's presence is probably most evident. The budget document emphasizes on “deterrence,” which no doubt lies behind the decision to upgrade the electronic warfare capability of Japan's existing F-15 fighter jets and purchase six F-35A fighters from Lockheed Martin. New plans call for purchases of 147 of these new fighters over the next few years, well above the original plan to buy forty-two of them. U.S. pressure is also clearly evident in this decision, as it will preclude purchase of the domestically developed F-2 fighter. In the words of one Japanese security analyst, Masahiro Matsumura, Japan's “defense industry is being sacrificed for the political goal of maintaining good Japan-U.S. relations.” Less controversial but also clearly aimed at the North Korean threat, the budget calls for Japan to upgrade its airborne early warning capability and spend nearly ¥300 billion ($2.7 billion) to deploy two land-based Aegis missile defense systems (“Aegis Ashore”) and other U.S. manufactured missile interceptors. Measures to counter China, at sea mostly, make a longer list. Of course, the F-15 upgrades and the new F-35s constitute something of an answer to China. More pointed are MoD plans to procure RQ-40 Global Hawk long distance drones, fund research to develop a long-distance undersea unmanned surveillance device, and otherwise enhance naval heft by procuring more anti-air missile and anti-torpedo ammunition as well as more standoff missiles. Plans also call for the construction of a new submarine, aimed, in the words of MoD budget documents, at “detections, etc.” (The etcetera no doubt refers to offensive capabilities that might raise constitutional questions.) Japan also has plans to construct two new multipurpose, compact destroyers that can also sweep mines. They will bring the fleet escort force to a total of fifty-four vessels—a considerable upgrade from the past. More controversial from a constitutional standpoint are other efforts that would: 1) enable the military to project power and 2) obligate Japan to its allies. The MoD seeks to procure a tanker to support the navy at sea, a clear statement that Japanese naval power has gone beyond coastal defense. The ministry also seeks two new C-2 transport aircraft and six more UH-X helicopters specifically aimed at rapid deployments. Also, it seeks a training budget to ready Japanese ground forces for more distant deployments. The ministry also seeks to refit an existing helicopter carrier over the next few years to carry some of the new F-35 fighters and then build a second carrier. In some interpretations, this clearly violates the self-defense strictures in Japan's constitution, though the prime minister and the MoD have couched the requests in defensive terms. In what also might constitute a further violation of the constitution, the ministry has asked for concessions to allow greater integration of Japanese command, control, and planning with allies, the United States, obviously, but also India, Australia, and ASEAN, in other words those nations trying to check Chinese expansion. Beyond these obvious countermeasures to North Korea and China, the MoD has also emphasized the need for modernization. It has set aside funds to establish what in the United States might describe as a cyber-defense command and to investigate the military use of artificial intelligence (AI). In a similar vein, the ministry has dedicated development funds to eventually install protections for Japan's satellites, including an optical telescope with which to identify objects flying nearby. It has further dedicated a not insignificant ¥2.7 billion ($24 million) to work with the United States on what it calls “deep space international awareness.” Not only do these efforts capture further needs, but the budget document emphasizes that the military will help Japan cope with its long-prevailing low birth rate and the resulting shortfall in people who meet the military's age requirements. One other aspect of this effort is the ministry's remarkably un-Japanese push to put more women into uniform. Even if not every yen makes it to its designated place, it is apparent that Japan will begin to alter the security equation in the Western Pacific in the not-too-distant future. If Abe manages to alter the constitution as planned, then the change will no doubt occur at an accelerated pace. It will alter Washington's calculations. Beijing surely will also take note. Milton Ezrati is a contributing editor at the National Interest , an affiliate of the Center for the Study of Human Capital at the University at Buffalo (SUNY), and chief economist for Vested, the New York based communications firm. His latest book is Thirty Tomorrows: The Next Three Decades of Globalization, Demographics, and How We Will Live . https://nationalinterest.org/feature/japan-accelerates-its-defense-buildup-41277

NAVY Microsoft Corp., Redmond, Washington, is awarded an estimated $1,760,000,000 value single-award, firm-fixed-price, indefinite-delivery/indefinite-quantity contract for Microsoft Enterprise Services for the Department of Defense (DoD), Coast Guard, and intelligence community. Support includes Microsoft product engineering services for software developers and product teams to leverage a range of proprietary resources and source-code, and Microsoft premier support for tools, knowledge database, problem resolution assistance, and custom changes to Microsoft source-code when applicable. This contract is issued under the DoD Enterprise Software Initiative (ESI) in accordance with the Defense Federal Acquisition Regulation Supplement, Section 208.74. DoD ESI is an initiative to streamline the acquisition process and provide information technology products and services worldwide that are compliant with applicable DoD technical standards and represent the best value for the DoD. The work will be performed worldwide. The ordering period will be for five years with a completion date of Jan. 10, 2024. This contract will not obligate funds at the time of award. Funds will be obligated on individual task orders using primarily operations and maintenance funds (DoD). This sole-source procurement is issued using other than full and open competition in accordance with Federal Acquisition Regulation Subpart 6.302-1 and 10 U.S. Code 2304(c)(1) - only one responsible source. The Space and Naval Warfare Systems Center Pacific, San Diego, California, is the contracting activity (N66001-19-D-0019). Raytheon Co., Marlborough, Massachusetts, is being awarded $9,347,391 for cost-plus-fixed-fee, firm-fixed-price order N6339419F0002 under a previously awarded basic ordering agreement (N6339417G5103) for engineering services in support of the Aegis SPY-1 radar and Mk 99 fire control system. This order will provide technical, logistical and engineering services from the original equipment manufacturer. This contract includes options which, if exercised, would bring the cumulative value of this order to $19,497,003. Work will be performed in Yorktown, Virginia (90 percent); and at various ship locations (10 percent), and is expected to be completed by January 2021. Fiscal 2018 other procurement (Navy) funding in the amount of $960,282 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Surface Warfare Center, Port Hueneme Division, Port Hueneme, California, is the contracting activity. DEFENSE LOGISTICS AGENCY GE Medical Systems Information Technologies Inc., Wauwatosa, Wisconsin, has been awarded a maximum $450,000,000 firm‐fixed‐price, indefinite‐delivery/indefinite‐quantity contract for patient monitoring systems, accessories and training. This was a competitive acquisition with 36 responses received. This is a five-year base contract with one five‐year option period. Location of performance is Wisconsin, with a Jan. 10, 2024, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D1‐19‐D‐0010). Transaero Inc.,* Melville, New York, has been awarded a maximum $23,237,500 firm-fixed price, indefinite-delivery/indefinite-quantity contract for fixed landing gear. This was a competitive small business set-aside acquisition with four offers received. This is a five-year contract with no options periods. Location of performance is New York, with a Jan. 10, 2024, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2024 Army working capital funds. The contracting activity is Defense Logistics Agency Aviation, Redstone Arsenal, Alabama (SPRRA1-19-D-0043). AIR FORCE Lockheed Martin Aeronautics, Marietta, Georgia, has been awarded a $131,604,450 contract for C‐5 sustainment. This contract provides for sustaining engineering services. Work will be performed in Fort Worth, Texas; Marietta, Georgia; and Palmdale, California, and is expected to be completed Jan. 25, 2019. This award is the result of a sole-source acquisition. A combination of fiscal 2019 transportation working capital funds; and operations and maintenance funds in the amount of $23,543,771 are being obligated at the time of award. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8525‐19‐D‐0001). MISSILE DEFENSE AGENCY Raytheon Co. (Raytheon) Space and Airborne Systems (SAS), San Diego, California, is being awarded a single award with a contract ceiling of $9,607,811 for an indefinite-delivery/indefinite-quantity contract for Multi-Spectral Targeting System (MTS) sensor support. Raytheon will provide subject matter expertise as a member of a government-led sensor development and demonstration team and will provide research, development, fielding and test support, operations, maintenance, and as-needed repairs on the government-owned MTS-class sensors. Raytheon is the sole designer, developer, and manufacturer of the MTS-class sensor. Work will be performed at El Segundo and San Diego, California. The ordering period and the period of performance is five years from the date of award. The first task order will be awarded at the same time the basic contract is awarded. Fiscal 2018 research, development, test and evaluation funds in the amount of $1,299,520 for the first task order is being obligated at time of award. The award to Raytheon SAS is the result of a proposal submitted in response to a sole-source solicitation (HQ0147-18-R-0013) one offer was received. The Missile Defense Agency, Redstone Arsenal, Alabama, is the contracting activity. (HQ0147-19-D-0013). DEFENSE HEALTH AGENCY CACI NSS Inc., Chantilly, Virginia, was competitively awarded a firm-fixed-price contract for $8,582,382 on Jan. 11, 2019. Contract has an effective date of Jan. 29, 2019. This award provides for non-personal Information Technology services in support of the legacy Theater Enterprise-Wide Logistics System (TEWLS) application to be known in the future as the systems, applications and products in the LogiCole application. The award will provide for pre-planned product improvement, life cycle management, and business process, and technical integration support and reengineering services for TEWLS. The contractor will provide software maintenance services to support Joint Medical Logistics Functional Development center in the configuration, technical sustainment and continued enhancement of the TEWLS as part of the Defense Medical Logistics – Enterprise Solution. The contractor place of support is Ft. Detrick, Maryland. This contract has an additional four option periods, if exercised. This contract is an acquisition under General Service Administration's IT schedule 70 with fiscal 2019 operations and maintenance funds in the amount of $8,582,382 obligated at time of award. The Defense Health Agency, Contract Operations – Health Information Technology,San Antonio, Texas, is the contracting activity (HT0015-19-F-0018). *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1730557/source/GovDelivery/

ARMY Northrop Grumman Systems Corp., Linthicum Heights, Maryland, was awarded an $86,200,000 hybrid cost-plus-fixed-fee and firm-fixed-price contract for Starlite system support. One bid was solicited with one bid received. Work locations and funding will be determined with each order, with an estimated completion date of Jan. 31, 2023. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W56KGY-19-D-0002). Torch Technologies Inc., Huntsville, Alabama, was awarded a $9,102,000 modification (000044) to contract W31P4Q-09-A-0021 for strategic systems engineering, integration, test and analysis. Work will be performed in Huntsville, Alabama, with an estimated completion date of Nov. 6, 2019. Fiscal 2019 research, development, test and evaluation funds in the amount of $9,102,000 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. U.S. TRANSPORTATION COMMAND Fourteen companies have been awarded Option Year 1 modifications under the following Category A III, indefinite-delivery/indefinite-quantity, fixed-price contracts: ABX Air Inc., Wilmington, Ohio (HTC711-18-D-C002); American Airlines, Fort Worth, Texas (HTC711-18-D-C003); Air Transportation International, Irving, Texas (HTC711-18-D-C004); Atlas Air of Purchase (HTC711-18-D-C005); Delta Air Lines Inc., Atlanta, Georgia (HTC711-18-D-C006); FedEx, Washington, D.C. (HTC711-18-D-C007); Hawaiian Airlines Inc., Honolulu, Hawaii (HTC711-18-D-C008); JetBlue Airways, Long Island City, New York (HTC711-18-D-C009); Miami Air International, Miami, Florida (HTC711-18-D-C010); National Air Cargo Inc., Orlando, Florida (HTC711-18-D-C011); Polar Air Cargo Worldwide Inc., Purchase, New York (HTC711-18-D-C012); United Parcel Service Co., Louisville, Kentucky (HTC711-18-D-C013); USA Jet Airlines, Belleville, Michigan (HTC711-18-D-C014); and Western Global Airlines, Estero, Florida (HTC711-18-D-C015). The companies are eligible to compete at the task order level for an option year estimated amount of $41,441,067. The program's cumulative value increased from $41,441,067 to $82,882,134 (estimated). This modification provides international commercial scheduled air cargo transportation services. Services encompass time-definite, door-to-door pick-up and delivery, transportation, in-transit visibility, government-approved third party payment system participation, and expedited customs processing and clearance of less than full planeloads for the movement of regular and recurring hazardous, refrigerated/cold chain (perishable), life and death, narcotics, and other regular recurring cargo shipments. Work will be performed world-wide. Option Year 1 period of performance is Feb. 1, 2019, to Jan. 31, 2020. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. MISSILE DEFENSE AGENCY Lockheed Martin Overseas LLC, Moorestown, New Jersey, is being awarded a $23,023,786 sole-source, fixed-price incentive and cost-plus-fixed-fee modification (P00020) under contract HQ0276-16-C-0001, inclusive of all options. The total cumulative face value of the contract will increase from $53,809,908 to $76,833,694. Under Contract Line Item Numbers (CLIN) 0001, 0101, 0102, 0103, and 0105, the contractor will provide Poland Aegis Ashore Engineering Agent (AAEA) engineering and security support, AAEA test and site updates, risk mitigation support, and continued completion effort for the Aegis Ashore Poland site. The work will be performed in Redzikowo, Poland, with an expected completion date of December 2020. Fiscal 2018 defense-wide procurement funds in the amount of $17,637,800 are being obligated at the time of award. The Missile Defense Agency, Dahlgren, Virginia, is the contracting activity. NAVY MA Federal Inc.,* doing business as iGov, Reston, Virginia, is awarded a $22,238,503 firm-fixed-price task order from a previously awarded contract for the purchase of Small Form Factor suite production, acquisition, engineering management support, logistics, and sustainment support services. Work will be performed in Tampa, Florida (80 percent); and Herndon, Virginia (20 percent), and is expected to be completed by January 2024. Fiscal 2018 procurement (Marine Corps) funds in the amount of $15,971,649; and fiscal 2019 procurement (Marine Corps) in the amount of $6,266,854 will be obligated at task order award and no funds will expire the end of the current fiscal year. This task order was competitively procured via the National Aeronautics and Space Administration Solutions for Enterprise-Wide Procurement, with three offers received. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-19-F-2025.) Kapili Services LLC,* Orlando, Florida, is awarded a ceiling $21,966,450 indefinite-delivery/indefinite-quantity contract to provide program manager training systems delta contract support. The ordering period is five years. Work will be performed in Orlando, Florida (95 percent); and the remaining performed worldwide in various places (5 percent), and work is expected to be completed by Jan. 9, 2024. Fiscal 2019 operations and maintenance (Marine Corps) funds in the amount of $2,145,638 will be obligated on the first task order immediately following contract award and funds will expire the end of the current fiscal year. Fiscal 2018 research, development, test and evaluation (Marine Corps) funds in the amount of $154,560 will be obligated on the first task order immediately following contract award and funds will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with Federal Acquisition Regulation 6.302-5 and 15 U.S. Code 637. The Marine Corps Systems Command, Quantico, Virginia, is the contract activity (M67854-19-D-7815). AAI Corp. Hunt Valley, Maryland, is awarded a $10,839,582 cost-plus-fixed-fee, cost-only, firm-fixed-price modification to previously awarded contract N00024-14-C-6322 to exercise options for engineering and technical services for the Unmanned Influence Sweep System (UISS) unmanned surface vehicle platform. The UISS is one of the systems, which will allow the littoral combat ship to perform its mine warfare sweep mission. UISS will target acoustic, magnetic, and magnetic/acoustic combination mine types only. 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. Work will be performed in Hunt Valley, Maryland (70 percent); and Slidell, Louisiana (30 percent), and is expected to be complete by September 2019. Fiscal 2019 research, development, test and evaluation (Navy) funding in the amount of $10,839,582 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 The Aerospace Corp., El Segundo, California, has been awarded a $22,000,000 modification (P00006) to contract FA8802-19-C-0001 for federally funded research and development centers. Work will be performed in El Segundo, California, and is expected to be completed by Sept. 30, 2019. No funds are being obligated at the time of award. Total cumulative face value of the contract is $1,073,818,540. Space and Missile Systems Center, Los Angeles Air Force Base, El Segundo, California, is the contracting activity. Raytheon Missile Systems, Tucson, Arizona, has been awarded a $21,000,000 modification (P00004) to the ceiling amount of the previously-awarded indefinite-delivery/indefinite-quantity contract (FA8675-15-D-0135) for advanced medium range air-to-air missile system improvement program software architecture and design risk reduction efforts to counter evolving threats. This modification provides an increase in the maximum ordering amount of the contract, from $50,000,000 to $71,000,000, to facilitate new task orders. Work will be performed in Tucson, Arizona. All orders under this contract will be placed on or before Sept. 30, 2019 with a period of performance not to exceed Sept. 30, 2022. No additional funds are being obligated at the time of award. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity. SRC Inc., North Syracuse, New York, has been awarded a $13,531,249 modification (P0007) to exercise an option on contract FA7037-17-D-0001 for the sensor beam program. Contractor will research, analyze, technically document, and perform reviews on electromagnetic systems, events and signatures required by the all services and other U.S. agencies. Work will be performed at Joint Base San Antonio-Lackland, Texas, and is expected to be completed by Jan. 31, 2020. No funds are being obligated at the time of award. Acquisition Management and Integration Center-Detachment 2, Joint Base San Antonio-Lackland, Texas, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1729037/source/GovDelivery/

DEFENSE LOGISTICS AGENCY W & G Machine Company Inc.,* Hamden, Connecticut, has been awarded a maximum $27,604,800 firm-fixed price, indefinite-delivery/indefinite-quantity contract for aviation flutter dampeners. This was a competitive small business set-aside acquisition with two offers received. This is a five-year contract with no option periods. Location of performance is Connecticut, with a June 23, 2025, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2024 Army working capital funds. The contracting activity is Defense Logistics Agency Aviation, Redstone Arsenal, Alabama (SPRRA1-19-D-0049). Federal Prison Industries Inc.,** Washington, D.C, has been awarded a maximum $27,189,820 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for extreme cold/wet weather jackets. This is an 18-month base contract, with one one-year option period. Locations of performance are Kentucky, Georgia, and Washington, D.C, with a July 8, 2020, performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-F019). Medical Place Inc.,*** Montgomery, Alabama, has been awarded a maximum $15,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for hospital equipment and accessories for the Defense Logistics Agency electronic catalog. This is a five-year contract with no option periods. This was a competitive acquisition with 68 responses received; 18 contracts have been awarded to date. Using customers are Department of Defense and other federal organizations. Location of performance is Alabama, with a Jan. 8, 2024, performance completion date. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-19-D-0009). NAVY Dakota Creek Industries Inc., Anacortes, Washington, is awarded a $26,710,222 firm-fixed-price modification to previously-awarded firm-fixed-price contract N00024-18-C-2205 to exercise options for the detail design and construction (DD&C) of two yard tug 808-class harbor tugboats (YT 812 and YT 813) and accessory items to include 50-man inflatable buoyant apparatus and Navy Mk-7 life raft, as well as packaging and delivery to final destination. The base contract award was for the DD&C of four tugboats including YT 808, YT 809, YT 810 and YT 811. The contract includes options for accessory items (hoisting system, life rafts, special towing lights and electronic navigation charts), packaging and delivery, crew familiarization and provisioned item orders. Work will be performed in Anacortes, Washington, and is expected to be completed by August 2021. Fiscal 2018 shipbuilding and conversion (Navy) funding in the amount of $13,339,017; and fiscal 2019 shipbuilding and conversion (Navy) funding in the amount of $13,371,205 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. Integral Aerospace, Santa Ana, California, is awarded $14,315,721 for modification P00001 to a previously awarded firm-fixed-price contract (N00019-18-C-1036). This modification provides for external fuel tank testing and exercises option year one for the production and delivery of 114 external fuel tanks in support of the F/A-18E/F and EA-18G aircraft. Work will be performed in Santa Ana, California, and is expected to be completed in May 2020. Fiscal 2017 aircraft procurement (Navy) funds in the amount of $14,315,721 will be obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Boeing Co., St. Louis, Missouri, is awarded a $9,276,687 modification to previously awarded contract N00024-13-C-6402 for the Air Launch Accessory (ALA) and ALA shipping container for the ALA of the High Altitude Anti-Submarine Warfare Weapon Capability in support of the P-8A integration efforts. Work will be performed in St. Louis, Missouri, and is expected to be completed by May 2020. Fiscal 2019 weapons procurement (Navy) funding in the amount of $9,276,687 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. Raytheon Co., McKinney, Texas, is awarded $7,124,695 for firm-fixed-price delivery order N00383-19-F-G000 under previously awarded basic ordering agreement N00383-14-G-005D for the repair of the APY-10 radar system used in support of the P-8A aircraft. Work will be performed in Jacksonville, Florida (66 percent); and McKinney, Texas (34 percent). Work is expected to be completed by January 2021. Fiscal 2019 working capital funds (Navy) in the full amount of $7,124,695 will be obligated at time of award and funds will not expire at the end of the current fiscal year. One source was solicited for this non-competitive requirement in accordance with Federal Acquisition Regulation 6.302-1, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity. WASHINGTON HEADQUARTERS SERVICES Johns Hopkins University, Applied Physics Laboratory, Laurel, Maryland, has been awarded an $8,565,000 cost-plus fixed-fee contract to provide assessments and alternatives of offensive capabilities within the domains of air, land, sea, space and cyberspace, missions and warfare areas that asymmetrically mitigate threat effectiveness, impose cost, and/or create ambiguity in adversary decision-making. Work performance will take place in the National Capital Region, including Arlington, Virginia; and Alexandria, Virginia. Fiscal 2018 research, development, test and evaluation funds in the amount of $100,000; fiscal 2019 research, development, test and evaluation funds in the amount of $8,115,000; and fiscal 2019 operations and maintenance funds in the amount of $350,000 are being obligated on this award. The expected completion date is Dec. 29, 2019. Washington Headquarters Services, Arlington, Virginia, is the contracting activity (HQ0034-13-D-0003). ARMY Navistar Defense LLC, Lisle, Illinois, was awarded an $8,069,336 fixed-firm-price Foreign Military Sales (Iraq) contract for Navistar transport and cargo vehicles. One bid was solicited with one bid received. Work will be performed in Lisle, Illinois, with an estimated completion date of Sept. 8, 2019. Fiscal 2019 operations and maintenance Army funds in the amount of $8,069,336 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-19-F-0168). *Woman-owned small business **Mandatory Source ***Service-disabled, veteran-owned small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1727817/source/GovDelivery/

DAVID PUGLIESE, OTTAWA CITIZEN The Canadian International Trade Tribunal is recommending a review of key performance requirements used in the procurement of two emergency towing vessels for the west coast. Heiltsuk Horizon, a partnership of majority partner Heiltsuk Nation of Bella Bella, British Columbia and Horizon Maritime Services Limited, a Canadian marine services company, complained to the CITT in August that the winning supplier did not meet important safety requirements of the tender process. The CITT has recommended Public Services and Procurement Canada re-evaluate some of its mandatory requirements and that no further expenditure under the contact be undertaken. However, the tribunal also recommended that the contract remain with the winning bidder, Atlantic Services Limited/Atlantic Towing, until the evaluation can be completed. In August, the federal government announced the firm had been awarded a three-year contract worth $67 million for the lease of two emergency offshore towing vessels that would operate in the waters off the coast of British Columbia. The vessels were to be capable of towing large commercial ships in distress, such as tankers and container ships, before they get too close to shore, according to the federal government. As part of the contract, the firm, which is an Irving company, would also provide training in offshore emergency towing to Canadian Coast Guard personnel and partners, including Indigenous communities, involved in marine safety. But Heiltsuk Horizon challenged that award, pointing out that the contract was awarded without the required proof the vessels met the mandated towing power. The firm welcomed the CITT ruling. “From day one, we stated the procurement process was flawed,” Chief Councillor Marilyn Slett, Heiltsuk Nation, Bella Bella, BC, said in a statement Tuesday. In a letter to Heiltsuk Horizon, the CITT recommends Public Services and Procurement Canada reevaluate the “bollard pull” (towing power) of the vessels in all bids received. The CITT also awarded Heiltsuk Horizon costs incurred in submitting the complaint. In a statement late Tuesday, Public Services and Procurement Canada noted it is currently reviewing the CITT's reasons and recommendations in order to determine its next steps. “The contract with Atlantic Towing remains in place,” it added. “Given the importance of the services provided by the Emergency Offshore Towing Vessels in the context of Canada's Oceans Protection Plan, these services will continue. It is important to note that one of the two vessels has already been used in an emergency situation.” Mary Keith, vice president of communications for Irving, issued a statement from Atlantic Towing, pointing out that the tribunal did not declare the firm's bid non-compliant. “This is good news and reaffirms the integrity of the rigorous and transparent award process by PWGSC that also involved a third party fairness monitor,” the statement added. “The Tribunal has requested verification of one item and we are confident in our full compliance. The Bollard Pull on our vessels are verified and certified by one of the world's leading marine certification companies.” https://ottawacitizen.com/news/national/defence-watch/trade-tribunal-calls-for-review-of-west-coast-vessel-contract

Drone pilots to register their drones and obtain a pilot certificate by June 1, 2019 January 9, 2019 Ottawa Transport Canada Transport Canada is committed to enhancing aviation and public safety while encouraging innovation and economic growth in the drone sector. Today, the Honourable Marc Garneau, Minister of Transport, announced Canada's new rules for remotely piloted aircraft systems, more commonly known as drones. The new rules, which will come into force on June 1, 2019, apply to all drone pilots flying drones between 250 grams and 25 kilograms that are operated within the drone pilot's visual-line-of-sight, regardless of whether the drone is flown for fun, work or research. The new simplified rules reflect significant consultations with Canadians and the industry. The final regulations introduce two main categories of drone operation: basic and advanced. The categories are based on distance from bystanders and airspace rules. Both categories have their own set of easy-to-follow rules that will require the drone pilot to: register and mark the drone with its registration number; pass an online exam and get a pilot certificate for basic or advanced operations; be a minimum age of 14 for basic and 16 for advanced operations, unless supervised by a person having proper certificates; stay below an altitude of 122 m (400 feet) above ground level; and stay away from air traffic. Only drone pilots who need to fly a drone outside the rules for basic or advanced operations will need to apply for a Special Flight Operations Certificate (SFOC) before they fly. Transport Canada encourages drone pilots to take the necessary time to review and fully understand the new rules for drones in Canada and to follow a course provided by a drone flight school before attempting to take an online exam or flight review. Drone pilots will need to have their Pilot Certificate and proof of registration readily available when flying their drone as of June 1, 2019. This can mean having an electronic version available on their mobile device or carrying a printed copy. Transport Canada has developed an improved, user-friendly website with information on the new regulations and helpful tools for all drone pilots available at: Canada.ca/drone-safety. Transport Canada's new drone services are available on our website. We invite drone pilots to create an account in the Drone Management Portal for easy access to these drone services at all times. Until the new rules come into force on June 1, 2019, recreational drone pilots must continue to follow the rules of the Interim Order Respecting the Use of Model Aircraft and pilots using their drone for work or research must continue to follow the conditions of their Special Flight Operations Certificate. All drone pilots are also subject to the Criminal Code as well as all provincial, territorial, and municipal laws governing areas such as privacy and trespassing. Endangering the safety of an aircraft is a serious offence. Anyone who violates the regulations could be subject to additional fines of up to $25,000 and/or prison. This applies to drones of any size used for any purpose. Quotes “We've listened closely to feedback from Canadians and have updated our regulations to balance practicality and the safe use of drones. Drones are part of an important economic sector with significant potential to improve lives and connect communities across the country. Our new regulations will create new opportunities for Canadians by establishing a safe and predictable regulatory environment where the industry can innovate and where recreational and non-recreational drone pilots can safely access Canadian airspace.” The Honourable Marc Garneau Minister of Transport https://www.canada.ca/en/transport-canada/news/2019/01/minister-garneau-unveils-canadas-new-drone-safety-regulations.html

By: Valerie Insinna WASHINGTON — As the U.S. government shutdown continues into its 18th day, defense firms and industry advocates are beginning to worry that the pause in business could eat into companies' cash flow. The Defense Department is funded for fiscal 2019, with Congress having passed a spending bill for the new fiscal year in September. That means work on the military's weapons programs continue apace, but many defense companies also hold contracts with agencies that are not currently funded, like the Department of Homeland Security — which includes the Coast Guard as well as Customs and Border Protection — and NASA. The Aerospace Industries Association, a lobbying group that represents defense and commercial aviation companies, warned that impacts to the aerospace sector extend beyond the 800,000 federal workers who are furloughed or working without pay. For example, weapons sales and transfers to U.S. allies and partners are stalled as a result of the closure of the departments of State and Commerce, AIA said in a Jan. 8 statement. Research projects at NASA, the Federal Aviation Administration, and National Oceanic and Atmospheric Administration are suspended, “setting back development of game changing technologies.” And meetings between the government and industry have been canceled or delayed. “Every day the shutdown lasts, the impacts grow and become more difficult and more expensive to fix,” said AIA President and CEO Eric Fanning. “It's time to get these dedicated public servants back to work.” Tony Moraco, the CEO of government service and information technology firm SAIC, told investors Jan. 7 that the effects of the shutdown are expected to be short term and primarily affecting accounts with NASA, the FAA and the U.S. Department of Agriculture. Moraco characterized the effect on SAIC and Engility — the latter of which is set to merge with the former this year — as a “modest impact on revenues and potentially cash collection, which we think we can recover — mostly — if this is resolved in the near term.” But SAIC Chief Financial Officer Charlie Mathis said the government is already behind on payments to the two companies by about $40 million to $50 million. “If we get through this quickly, they could catch up,” he said, but the shutdown would have to be resolved within a week for the companies to hit their cash-flow goals for their fiscal year ending Jan. 31. Furthermore, the companies are seeing a hit of about $10 million per week in revenue as the shutdown progresses, and “if it continues, that number could increase,” Mathis said. The probability of an extended shutdown seems to be rising. The government shutdown started Dec. 22 amid disagreements between President Donald Trump and Congress over funding for a border wall that would separate the United States and Mexico. But with Democrats now controlling the House of Representatives, a deal on funding for the wall may take weeks and could propel this shutdown past the 21-day mark of the 1995 shutdown, currently the longest on the books, according to CNN. Defense contractors will eventually get paid back for work accomplished while the government was shut down, but there could be long-standing consequences. If the shutdown persists for a protracted amount of time, there could be repercussions for the federal government's recruiting pipeline, as well as the balance of federal employees and contractors, said Byron Callan, an analyst for Capital Alpha Partners. “How will this shutdown impact the ability of federal agencies impacted by the shut-down to recruit and retain skilled individuals?” he wrote in an emailed analysis of SAIC's investor meeting. “There might be near-term collateral damage if people leave government service, but a 1-3 year factor to consider is how this shutdown and the potential for future ones accelerates reliance on federal service contractors.” https://www.defensenews.com/industry/2019/01/08/us-government-shutdown-creating-angst-for-defense-contractors

By: Burak Ege Bekdil ANKARA, Turkey — Turkey's procurement authorities are working to identify why some of the industry's most talented individuals are migrating to Western countries — an exodus that could stall several indigenous programs. Turkey's procurement authority, the Presidency of Defence Industries — also known as SSB and which directly reports to President Recep Tayyip Erdogan — conducted a survey to better understand the migration. A parliamentary motion revealed that in recent months a total of 272 defense industryofficials, mostly senior engineers, fled Turkey for new jobs abroad, with the Netherlands, the United States and Germany topping the list, respectively. Other recipient countries are Britain, Canada, Australia, Austria, Belgium, Italy, Sweden, Poland, France, Finland, Japan, Thailand, Qatar, Switzerland and Ireland, according to the SSB's internal study. The companies affected by the exodus are state-controlled entities: defense electronics specialist Aselsan, Turkey's largest defense firm; military software concern Havelsan; missile-maker Roketsan; defense technologies firm STM; Turkish Aerospace Industries; and SDT. Findings among those who left and responded to the survey include: 41 percent are in the 26-30 age group. “This highlights a trend among the relatively young professionals to seek new opportunities abroad,” one SSB official noted. 40 percent have graduate degrees; 54 percent have postgraduate degrees; and 6 percent have doctorates or higher degrees. 59 percent have more than four years of experience in the Turkish industry. The largest group among those who left (26 percent) cited “limited chance of promotion and professional progress” as the primary reason to seek jobs in foreign companies. Other reasons cited include lack of equal opportunities in promotion (14 percent); low salaries (10 percent); and discrimination, mobbing and injustice at work (10 percent). 60 percent said they found jobs at foreign defense companies after they applied for vacancies. 61 percent are engineers and 21 percent are industry researchers. Among the respondents' expectations before they would consider returning to Turkish jobs were higher salaries, better working conditions, full use of annual leave, professional management and support from top management for further academic work. They also want the political situation in Turkey to normalize and for employees to win social rights in line with European Union standards. They also want to guarantee there won't be employee discrimination according to political beliefs, life styles and religious faith. They added that mobbing should stop and that employees be offered equal opportunities. A recent article in The New York Times, citing the Turkish Statistical Institute, said more than a quarter-million Turks emigrated in 2017, an increase of 42 percent over 2016, when nearly 178,000 citizens left the country. The number of Turks applying for asylum worldwide jumped by 10,000 in 2017 to more than 33,000. “The flight of people, talent and capital is being driven by a powerful combination of factors that have come to define life under Mr. Erdogan and that his opponents increasingly despair is here to stay," according to The New York Times. "They include fear of political persecution, terrorism, a deepening distrust of the judiciary and the arbitrariness of the rule of law, and a deteriorating business climate, accelerated by worries that Mr. Erdogan is unsoundly manipulating management of the economy to benefit himself and his inner circle.” One senior engineer who left his Turkish company for a job with a non-Turkish, European business told Defense News: “I know several colleagues who want to leave but have not yet found the right jobs. I expect the brain drain to gain pace in the next years, depending on Western companies' capacity to employ more Turkish talent.” https://www.defensenews.com/industry/2019/01/08/turkish-brain-drain-why-are-defense-industry-officials-ditching-their-jobs-in-turkey-for-work-abroad