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By: David B. Larter WASHINGTON — As the U.S. Navy's surface fleet moves into 2019, a radical shift is coalescing among its leaders: a move away from a model that has driven the way the service has built its ships for decades. When the Navy built its Arleigh Burke-class destroyers, installing the Aegis combat system into the hull meant a large suite of hardware — computers, servers, consoles and displays — designed and set up specifically to run Aegis software. Any significant upgrades to the suite of systems already installed, or to the Aegis system in general, required cutting a hole in the ship and swapping out all the computers and consoles — a massively expensive undertaking. And what's more, Aegis isn't the only combat system in the fleet. Raytheon's Ship Self-Defense System runs on many of the amphibious ships and the Ford-class carriers. Both classes of littoral combat ship run different combat systems, one designed by Lockheed Martin and the other by General Dynamics. And in regard to the ships themselves, there are multiple, siloed systems that don't feed into the main combat system. If Navy leaders get their way, that's going to change. What the surface fleet wants is a single combat system that runs on every ship, and runs everything on the ship, and that doesn't mind what hardware you are running so long as you have the computing power for it. The goal here is that if a sailor who is trained on a big-deck amphibious ship transfers to a destroyer, no extra training will be necessary to run the equipment on the destroyer. “That's an imperative going forward — we have to get to one, integrated combat system,” Rear Adm. Ron Boxall, the chief of naval operations' director of surface warfare, said in a December interview at the Pentagon with Defense News. Boxall describes the current situation to an integrated combat system as the difference between a flip phone and an iPhone. When buying a flip phone, most of the hardware and software are already included, leaving you with a limited ability to upgrade the phone. And if you want to run more advanced applications, you need a new phone. Instead, Boxall wants the combat systems to run like the iPhone. “For us to get faster, we either have to keep going with the model we had where we upgrade our flip phones, or we cross over the mentality to where it says: 'I don't care what model of iPhone you have — 7 or X or whatever you have — it will still run Waze or whatever [applications] you are trying to run,” he said. On a ship, that means that if the Navy adds a new radar, missile or laser, the software that runs the new equipment is developed as an application that interfaces with the single integrated combat system, the way Waze integrates with the iPhone or Android software. This has the benefit of having everything linked into the central nervous system for operators in the combat information center, sonar control, on the bridge or in the ship's intelligence-gathering center. It also means that new systems are quickly integrated, skipping the expensive process of ripping out old servers and consoles. And it means the companies that develop the myriad combat systems in service today — say, Raytheon or Lockheed Martin — won't have a lock on developing software for Navy ships because the Navy wants the combat system to be developed with interfaces that are accessible by outside application developers. “We need to continue down the path to be more aggressive and get a lot more competition in the open-architecture space,” Boxall said. “I wouldn't call it completely open, but as open as we can be, and then share that with people who can, if they are properly classified and secured, they should be able to come into a common space and apply their expertise to develop products that we may or may not want to buy. That's where I'd like to get to.” The vision The grand vision for this operating system from the deck-plates perspective would be the merging what are, today, disparate functions into one unified system, said Bryan McGrath, a retired destroyer skipper and consultant who heads The FerryBridge Group. One of the areas in which this segmentation creates limitations falls between the combat information center — which collects and displays information gathered by ships' sensors — and the intelligence hub known as the Ship's Signals Exploitation Space — which uses top-secret sources to collect data on the theater in which the ship is operating. “We need to break down the barrier between CIC and SSES, and the barrier is both a physical bulkhead and computing systems and platforms,” McGrath said. “That's what an integrated combat system is: You have the traditional combat system function, and the intelligence, surveillance and reconnaissance functions — non-real-time and [top-secret information] functions — merged into one multilevel security-protected computing platform.” In that scenario, if SSES receives information that three Iranian F-14 jets took off from Bushehr Air Base, a watchstander in the combat information center with the proper security clearance could see what information SSES has on the aircraft and their mission while stripping out top-secret information such as sources and methods that SSES needs to protect. And once CIC has a radar track associated with that intelligence, all SSES data will get merged into it so decision-makers in combat have the necessary intel at their fingertips. But the logic applies to all the ship's sensors, not just intelligence collection data. The unified combat system would associate every piece of sensor data with the track being displayed in CIC, McGrath said. Everyone connects to a single system that gives every watchstander all the information they need on every track, both real-time and non-real-time data. “The integrated combat system includes all mission areas,” he said. “It's electronic warfare, it's anti-submarine warfare — we don't segment out air and missile defense and electronic warfare, they are all just applications within the combat system. The Navy has to stop thinking of SESS, sonar, combat, electronic warfare and the bridge as different and separate elements. They have to be part of the whole.” Staggering costs There's a number of obstacles to getting the surface fleet on a unified system, but one that could be insurmountable: the staggering cost of replacing the fleet's outdated computer hardware. The Common Source Library, developed for the Navy by Lockheed, begins moving the Navy down this path of a single, unified combat system. The CSL is essentially the iOS of an iPhone: The Navy can use CSL to program applications that run sensors and weapons systems. So, if the Navy has a new missile system it wants to run, the software application to run it will be designed to run off of the CSL — and ships with the CSL will be able to rapidly integrate it, just like downloading the latest navigation or gaming software for a smartphone. But the issue is that CSL requires specific hardware to function, said Tony DeSimone, chief engineer of Lockheed Martin integrated warfare systems and sensors, in a roundtable with reporters late last year. “One of the challenges the Navy has, the constraints, is the hardware and infrastructure to support a [common integrated combat system],” DiSimone said. “So while we are marching forward with the capability to be open and take in apps, there is an antiquated architecture out there and there is hardware that doesn't support it. ... You can't run [integrated operating] systems today on UYK-43s. You're just not going to be able to do it. So let's gut them and put some blade servers in, and we'll work with you.” The UYK-43 was once the Navy's standard 32-bit computer for surface and submarine platforms. The issue with replacing a fleet full of ancient computers that run old combat systems is the astronomical cost. For example, when the Navy converted the cruiser Normandy into an Aegis Baseline 9 ship, which includes updated displays and blade servers, it cost the service about $188 million and nearly a year offline. When you stretch that over dozens of surface combatants in need of updated computers, you start eating up billions of dollars and lose decades of operational availability. So while CSL does give the Navy an interface with which developers can create applications to run various systems, it's all for naught if the service doesn't have the right equipment. “Our Common Source Library has made us radar-agnostic,” said Jim Sheridan, vice president of Lockheed Martin's naval combat and missile defense systems. “We're also weapons-agnostic. The blocker is that we are not infrastructure-agnostic.” Furthermore, even if the Navy did back-fit all the surface ships with updated servers, you'd need to get various companies to play nice in the sandbox by sharing proprietary information for the benefit of a unified combat system. Ultimately, however, the Navy must affect a paradigm shift that decouples the computer suites that run its combat systems from the system itself, Boxall said. “You can either upgrade the existing ships on that model, which is expensive and you rip the ship apart to do it — cost hundreds of millions of dollars and a year offline — or you design the ship with the idea that you are going upgrade the hardware over its time, and you separate the hardware/software layers,” Boxall said. “We know Aegis,” he added. “What we don't know [is how to] upgrade Aegis at the pace I think we need moving forward in the future. We don't have a structure in place and a process by which we do that upgrades with speed. “When we buy Aegis, it's kind of flip-phone technology: You buy the software and the hardware together. And you can upgrade it, it's just hard to do. If we don't go to a more adaptable model, we are not going to be able to pace the threat.” https://www.defensenews.com/naval/2019/01/14/the-future-of-the-us-surface-fleet-one-combat-system-to-rule-them-all/

by Michael Peck “The Navy continues to struggle with rebuilding the readiness of the existing fleet due to enduring maintenance and manning challenges,” the report finds. “As the Navy seeks to expand its fleet by 25 percent, these challenges will likely be further exacerbated and the Navy will likely face additional affordability challenges.” The Navy must fix the teething troubles of a new and complicated aircraft that lacks sufficient spare parts: in 2017, only 15 percent of Marine F-35Bs were rated fully mission-capable. “The Navy and the Marine Corps may have to decide whether they are willing to accept less reliable and maintainable aircraft than originally planned,” GAO warned. How can the U.S. Navy buy more ships and planes when it can't maintain the ones it has? That's the question posed by a new Government Accountability Office report . “The Navy continues to struggle with rebuilding the readiness of the existing fleet due to enduring maintenance and manning challenges,” the report finds. “As the Navy seeks to expand its fleet by 25 percent, these challenges will likely be further exacerbated and the Navy will likely face additional affordability challenges.” Auditors point to seven problems that GAO, Congress's watchdog agency, have highlighted over the past several years, but which have yet to solved: Training: After a series of embarrassing collisions at sea in 2017, which led to fears that Navy has forgotten basic ship-handling skills, training was revamped along with fewer waivers for required training. Still, “while the Navy has demonstrated its commitment to ensuring that crews are certified prior to deploying, training for amphibious operations and higher-level collective training may not be fully implemented for several years.” Maintenance backlogs: Between 2012 and 2018, only 30 percent of maintenance was completed on schedule. In particular, most Navy attack submarines have suffered maintenance delays. The backlog is caused by insufficient capacity in public shipyards as well as shortages of shipyard workers. Overworked sailors: In 2017, GAO concluded that the Navy was underestimating how many sailors were needed to man ships, leading to undersized crews and overworked sailors. The Navy says it is aiming for surface ships based overseas to have a minimum of 95 percent of their complement, but GAO auditors who interviewed crews in Japan were told that “the Navy's methods for tracking fit and fill do not account for sailor experience and may be inaccurately capturing the actual presence of sailors onboard and available for duty on its ships. Moreover, sailors consistently told us that ship workload has not decreased, and it is still extremely challenging to complete all required workload while getting enough sleep.” Unrealistic budgeting: The Navy wants to boost the number of ships by 25 percent, and is planning to buy 301 new ships between now and 2048 as well as extending the life of older destroyers and submarines. But GAO and the Congressional Budget Office have calculated that the Navy “has consistently and significantly underestimated the cost and timeframes for delivering new ships to the fleet. For example, the Navy estimates that buying the new ships specified in the fiscal year 2019 plan would cost $631 billion over 30 years while the Congressional Budget Office has estimated that those new ships would cost $801 billion—a difference of 27 percent.” Aging aircraft: Numerous aircraft models across the Navy, Air Force and Marine Corps have been plagued by low availability rates due to aging aircraft, lack of spare parts for older planes, and too few mechanics. Too few pilots: The shortage of Marine Corps fighter pilots quadrupled to 24 percent between 2006 and 2017, while the Navy has been scrambling to fill pilot vacancies. “Further compounding their pilot shortages, we also found that the services have not recently reevaluated squadron requirements to reflect an increased fighter pilot workload,” said GAO. “As a result, the reported shortage actually could be greater.” The F-35: The Navy must fix the teething troubles of a new and complicated aircraft that lacks sufficient spare parts: in 2017, only 15 percent of Marine F-35Bs were rated fully mission-capable. “The Navy and the Marine Corps may have to decide whether they are willing to accept less reliable and maintainable aircraft than originally planned,” GAO warned. Michael Peck is a contributing writer for the National Interest. He can be found on Twitter and Facebook. https://nationalinterest.org/blog/buzz/sink-feeling-navys-7-big-problems-one-f-35-41502

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

By: Sebastian Sprenger COLOGNE, Germany — The German Cabinet has approved a new, high-level pact with France that calls for a common approach to weapons exports in all joint programs. The objective is included in the so-called Aachener Vertrag, slated to be signed by French President Emmanuel Macron and German Chancellor Angela Merkel in the German city of Aachen on Jan. 22. The document is meant to be a milestone agreement complementary of the Élysée Treaty, signed 56 years ago, further cementing ties on all levels between the former World War II foes. Berlin and France previously clashed over the question of export limitations for the Future Combat Air System, a sixth-generation warplane envisioned to take flight sometime around 2040, Germany's Der Spiegel reported last fall. France generally is open to exporting arms to many governments willing to pay for them. German leaders profess to take a more cautious approach when human rights concerns crop up, though the government has a history of making arms deals through the back door anyway. The different philosophies came to a head following the death of Saudi journalist Jamal Khashoggi on Oct. 2, which some have alleged was orchestrated by Saudi Arabian Crown Prince Mohammed bin Salman. The Saudi ruling family has denied the allegations, buoyed by the Trump administration's decision to play down the matter. The allegations led Merkel to publicly call for halting weapons exports to Saudi Arabia, a move that drew a sharp rebuke from Paris, where officials fumed about what they perceived as German sanctimoniousness. France and Germany's diverging export policies are based on their respective “strategic cultures,” said Wolfgang Rudischhauser, vice president of the Federal Academy for Security Policy in Berlin. Germany considers itself a “peace power,” whereas France models its policies on the premise of an “intervention army,” he said. Asked whether the section on harmonizing export policies in the Aachener Vertrag was aimed at least in part at the future combat aircraft program, a spokesman for the German foreign ministry pointed out that no projects were explicitly mentioned in the draft treaty text. That program, together with a future main battle tank and a future combat drone, forms the backbone of Franco-German defense ambitions, with tens of billions of dollars at stake. With a concrete objective toward harmonizing arms-export rules now on the books between Paris and Berlin, Rudischhauser argued that a European Union-wide regime would be needed in the end. “That would require ceding certain authorities to the EU, for which neither Germany nor France have shown an appetite,” he told Defense News. To oversee the the new treaty's defense provisions, the pact establishes a bilateral defense and security council, which would “convene regularly at the highest level.” https://www.defensenews.com/global/europe/2019/01/11/france-germany-aim-to-unify-their-clashing-weapons-export-rules

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

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