4 août 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
By
August 3, 2020 at 8:00 a.m. EDT
A military equipment supplier that has been accused of fraudulently misrepresenting its size in order to benefit from privileges associated with being a small business has received a Paycheck Protection Program small business loan worth at least $2 million, public records show.
Atlantic Diving Supply, a Virginia Beach, Va.-based reseller of specialized military gear, is the latest organization whose receipt of taxpayer-backed loans through the Paycheck Protection Program has raised questions about a program launched in early April to help sustain employment at small companies through the economic crisis.
In late April, the Treasury Department retroactively clarified its rules after well-known restaurant chains, car dealerships and hotel companies reported receiving PPP loans. Several of them returned the loan funds following public uproar; others kept the money. The SBA has said it will audit all PPP loans above $2 million to determine whether the recipients were eligible.
Representatives from the Small Business Administration and Atlantic Diving Supply did not comment on the company's receipt of SBA loans.
The company's legal issues are detailed extensively in a report released Monday by the nonprofit Project on Government Oversight, known as POGO. A review of business data by POGO and the nonprofit Anti-Corruption Data Collective concluded that ADS was one of at least 27 PPP recipients estimated annual sales of more than $1 billion in 2019. Another 2,068 loan recipients cleared $100 million in sales last year, according to the analysis.
Nick Schwellenbach, a senior investigator at POGO, questioned whether it's appropriate for ADS to receive small business coronavirus loans. Schwellenbach's investigation also found that two other firms allegedly tied to ADS ― including one that was named in a settlement with the Department of Justice ― separately received smaller PPP loans.
“It's important that taxpayer funding reserved for genuine small businesses isn't siphoned off by companies that are not eligible,” Schwellenbach said. “As a top government contractor with revenues well over a billion dollars a year, it strains credibility that Atlantic Diving Supply is a real small business, especially given several recent settlements and law enforcement outcomes related to their alleged small business contracting fraud."
Although it received a favorable ruling from the SBA as recently as November 2019, ADS's small business credentials have long been called into question.
ADS started as a small, family-owned shop focused on the military diving community in Virginia Beach, which includes the Navy SEALs. It was transformed under the leadership of long-time chief executive Luke Hillier, winning its first major government contract in 2000. It grew quickly to meet an insatiable demand for military gear of all sorts in the years following 9/11.
That fast growth became permanent business as the U.S. military presence in Iraq, Afghanistan and elsewhere dragged on for nearly two decades.
At one point, ADS filed papers to go public, something that is usually the purview of large corporations. In 2015 it purchased Theodore Wille International, a military food and equipment supplier with offices in seven countries.
Its business has remained healthy despite recent troop reductions. ADS received more than $3 billion in unclassified government contract dollars in 2019, procurement records show. That's more than some well-known, objectively large government contractors, including Bechtel, KBR and CACI. ADS has already cleared $1 billion in federal contract receipts in 2020 despite the economic crisis.
As it has grown ADS's continued status as a small business status has been critical to its participation in the Defense Department's Tailored Logistics Support, or TLS program, a lucrative military supply line that is largely restricted to SBA-approved small and disadvantaged businesses.
In recent years, ADS's official headcount has teetered close to the SBA's 500-employee limit for small-company designation, and the company has fought off repeated challenges to its size status. If ADS were declared “no longer small,” it would not only be ineligible for SBA coronavirus assistance, but would also be forbidden from competing on small business set-aside contracts that drive its business.
In 2017, ADS settled federal allegations that it used a network of allegedly-affiliated companies to rig bids and fraudulently misrepresent its size. The Justice Department called the $16 million settlement “one of the largest recoveries involving alleged fraud in connection with small business contracting eligibility.”
Hillier, who has moved on from the CEO role but remained the company's chairman as of July 20, according to a company filing, separately paid $20 million to settle federal allegations that he “violated the False Claims Act by fraudulently obtaining federal set-aside contracts reserved for small businesses that his company was ineligible to receive.” The settlements resulted from a Qui Tam lawsuit brought by whistleblowers.
Two of the alleged affiliate businesses — Karda Systems and SEK Solutions — were named in a related case in which Ron Villanueva, a former state lawmaker from Virginia Beach, pleaded guilty to federal charges that he conspired to defraud the United States. Villanueva admitted that he and a friend pretended both companies were run by people who qualified for particular grants and drafted a misleading letter to the SBA that mischaracterized the degree to which one firm relied on other suppliers.
ADS briefly lost its small business designation as a result of those allegations when a Defense Department contracting officer, concerned by ADS's settlement, requested a formal SBA review of the company's size status and its degree of affiliation with other companies named in the whistleblower lawsuit, according to documents obtained by The Washington Post. That SBA review determined that ADS was “other than small,” which temporarily blocked the company from bidding on set-aside contracts. But ADS successfully appealed that ruling, which was reversed because it relied on old financial records.
Today the company continues to receive federal contracts designated for small firms. Because the settlements arrived at by ADS and Hillier did not include a determination of liability, the company has been allowed to keep benefiting from the SBA's various small business programs. Its most recent size determination, which found it to be a small business, was finalized in November 2019.
25 mai 2021 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
Details of President Joe Biden’s first defense budget won’t be out until Friday, but lawmakers on the left and right have already drawn out their lines for the battle ahead.
5 mars 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité, Autre défense
MISSILE DEFENSE AGENCY Lockheed Martin Corporation Missiles and Fire Control, Dallas, Texas, is being awarded a non-competitive hybrid contract line item numbers type (cost-plus-incentive-fee, firm-fixed-price and cost reimbursement) contract under Foreign Military Sale (FMS) cases to the Kingdom of Saudi Arabia (KSA). The total estimated value of this contract is $945,900,000. Under this undefinitized contract action, the contractor will provide Terminal High Altitude Area Defense (THAAD) FMS KSA Phase I long lead items, obsolescence, tooling and test equipment, key personnel, line requalification activities, initial training development, System Integration Lab and testbeds, three-level maintenance concept, exportability, and early engineering development. The work will be performed in: Dallas, Texas; Lufkin, Texas; Huntsville, Alabama; Anniston, Alabama; Camden, Arkansas; Troy, Alabama; and Sunnyvale, California. The performance period is from Feb. 28, 2019, through Oct. 31, 2026. KSA FMS funds in the amount of $945,900,000 will be used to fund this effort. The Missile Defense Agency, Huntsville, Alabama, is the contracting activity (HQ0147-19-C-0007). NAVY Corvid Technologies LLC,* Mooresville, North Carolina, is awarded a $223,277,038 firm-fixed-price, cost-plus-fixed-fee, cost-reimbursable, indefinite-delivery/indefinite-quantity contract for the delivery of hardware, equipment and components for manufacturing and integration of short- and medium-range sub-orbital flight vehicles supporting Navy, other government agencies, and Foreign Military Sales testing over a five-year ordering period. The flight vehicles are exo-atmospheric rocket-based vehicles specifically configured to deliver payloads and test articles into a flight regime of interest for systems under test. This contract combines purchases for the Navy (76 percent); other government agencies (12 percent); and Foreign Military Sales to the government of Japan (12 percent). Work will be performed at the White Sands Missile Range, New Mexico (70 percent); Mooresville, North Carolina (10 percent); Herndon, Virginia (5 percent); Glen Burnie, Maryland (5 percent); Las Cruces, New Mexico (5 percent); and Huntsville, Alabama (5 percent), and is expected to be completed by February 2024. Foreign Military Sales (Japan) funding in the amount of $8,021,855 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with two offers received. The Naval Surface Warfare Center, Dahlgren Division, Dahlgren, Virginia, is the contracting activity (N00178-19-D-5001). General Dynamics Electric Boat Corp., Groton, Connecticut, is being awarded a $76,210,586 cost-plus-fixed-fee completion undefinitized contract action under previously-awarded contract N00024-16-C-2111 to perform planning and execution efforts and alterations during USS South Dakota's (SSN 790) post-delivery work period. Work will be performed in Groton, Connecticut, and is expected to be completed by December 2020. Fiscal 2019 and 2020 research, development, test and evaluation (Navy) funding in the amount $38,320,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding, Conversion and Repair, Groton, Connecticut, is the contracting activity. General Dynamics Electric Boat Corp., Groton, Connecticut is awarded a $60,000,000 cost-plus-fixed-fee, level-of-effort undefinitized contract action under previously-awarded contract N00024-09-C-2104 to provide additional support and services during USS South Dakota's (SSN 790) post-delivery work period. Work will be performed in Groton, Connecticut, and is expected to be completed by December 2020. Fiscal 2019 shipbuilding and conversion (Navy) funding in the amount of $30,000,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding, Conversion and Repair, Groton, Connecticut, is the contracting activity. General Dynamics Electric Boat Corp., Groton, Connecticut, is awarded a $55,077,981 cost-plus-fixed-fee, level-of-effort undefinitized contract action under previously-awarded contract N00024-16-C-2111 to perform the planning and execution efforts and installation of the Stern Area System during USS South Dakota's (SSN 790) post-delivery work period. Work will be performed in Groton, Connecticut, and is expected to be complete by December 2020. Fiscal 2019 and fiscal 2020 (subject to availability of funds) research, development, test and evaluation (Navy) funding in the amount $27,680,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding, Conversion and Repair, Groton, Connecticut, is the contracting activity. Serco Inc., Reston, Virginia, is awarded a $41,304,910 modification under fixed-price contract (N39430-16-C-1811) to exercise Option Period Three for lifecycle sustainment of physical security/access control and command, control, communications, computers, and intelligence systems in support of the Naval Facilities Engineering Command Anti-Terrorism/Force Protection Ashore Program at various Navy installations worldwide. The work to be performed provides for preventive maintenance of hardware, associated firmware, and software; response and resolution of service calls for corrective maintenance to include equipment repair, overhaul, or replacement; information assurance vulnerability alert to include version control, patch management, and vulnerability scanning; asset management to track, maintain, upgrade, and dispose of systems; configuration management to establish and maintain consistency of the system attributes with operational requirements and evolving technical baseline; technical refreshments, upgrades and installation of new systems; and programmatic trend analysis to identify systemic sustainment issues such as technology obsolescence. After award of this option, the total cumulative contract value will be $160,741,210. Work will be performed at various installations worldwide, and work is expected to be completed March 2020. Fiscal 2019 operations and maintenance, (Navy) contract funds in the amount of $41,304,910 are obligated on this award and will expire at the end of the current fiscal year. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity. Gilbane Federal, Concord, California, is awarded an $8,403,802 firm-fixed-price modification to decrease the value of the contract for the cleaning, inspection, and repair of fuel storage tanks 602, 604 and 605 at Defense Fuel Support Point (DFSP) Tsurumi, Japan, from the task order scope of work. After award of this modification, the total remaining task order value will be $4,733,405. Work will be performed in Tsurumi, Japan, and is expected to be completed by May 2019. Fiscal 2016 defense working capital (Defense Logistics Agency) contract funds in the amount of $8,403,802 will be de-obligated on this award and will not expire at the end of the current fiscal year. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity (N39430-15-D-1634). ARMY REEL COH Inc., Mobile, Alabama (W9128F-19-D-0019); PaR Sytstems, Shoreview, Minnesota (W9128F-19-D-0020); Knight Construction & Supply Inc.,* Deer Park, Washington (W9128F-19-D-0021); Crane Technologies,* Rochester Hills, Minnesota (W9128F-19-D-0022); and Garco WEMCO JV, Spokane, Washington (W9128F-19-D-0023), will compete for each order of the $99,900,000 contract for crane rehabilitation and replacement. Bids were solicited via the internet with nine received. Work locations and funding will be determined with an estimated completion date of March 3, 2024. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity. Lockheed Martin Missiles Fire Control, Grand Prairie, Texas, was awarded an $8,469,594 modification (P00026) to Foreign Military Sales (Japan, Saudi Arabia, Republic of Korea, Kuwait, Qatar, Taiwan, United Arab Emirates, Germany and Netherlands) contract W31P4Q-17-D-0026 for Phased Array Tracking Radar to Intercept On Target Advanced Capability-3 Missile Support Center Field Missile Activities. Work locations and funding will be determined with each order, with an estimated completion date of May 31, 2020. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. DEFENSE LOGISTICS AGENCY Steris Corp., Mentor, Ohio, has been awarded a maximum $48,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for hospital equipment and accessories. This was a competitive acquisition with 74 responses received. This is a five-year contract with no option periods. Location of performance is Ohio, with a March 3, 2024, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. 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-0011). Aurora Industries LLC,* Camuy, Puerto Rico, has been awarded a maximum $18,672,261 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for coats for the Army Combat Uniform and Improved Hot Weather Combat Uniform. This was a competitive acquisition with three responses received. This is a two-year contract with no option periods. Location of performance is Puerto Rico, with a Sept. 3, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1137). AIR FORCE The Boeing Co., Defense Space Security, St. Louis, Missouri, has been awarded a not-to-exceed $40,000,000 undefinitized fixed-price-incentive-firm modification (P00003) to previously awarded contract FA8634-18-C-2697 for Infra-Red Search and Track Block II Ship Sets. This modification provides for the production of an additional six Block II IRST Ship Sets. Work will be performed in St. Louis, Missouri; and Orlando, Florida, and is expected to be complete by Oct. 31, 2022. Fiscal 2017 procurement funds in the amount of $19,600,000 are being obligated at the time of award. This modification brings the total cumulative face value of the contract to $249,784,825. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. JASR Systems LLC, La Jolla, California, has been awarded an $8,107,308 firm-fixed-price contract for research and development. This contract provides for the development of chip-scale Optical Phased Arrays and Light Detection and Ranging systems that leverages Defense Advanced Research Projects Agency Modular Optical Aperture Building Blocks (MOABB) Phase 1, and maps to Phases 2 and 3 of the MOABB program respectively. Work will be performed in La Jolla, California, and is expected to be complete by Nov. 1, 2020. This award is the result of a competitive acquisition and one offer was received. Fiscal 2018 research, test, development and evaluation funds in the amount of $1,400,000 are being obligated at the time of award. Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-19-C-7916). * Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1774554/
22 mai 2020 | International, Aérospatial
OLIVIER GOSSET 20 mai 2020 10:48 Le constructeur américain a annoncé un ralentissement temporaire de la production de son avion de combat en raison des retards dans la fourniture de pièces par les sous-traitants. Les calendriers de livraison seront adaptés. Lockheed Martin a annoncé mercredi un ralentissement temporaire de la production de son avion de combat F-35, en raison des retards dans la fourniture de pièces par les sous-traitants à cause de la pandémie de coronavirus. Le géant américain de la défense et le syndicat des machinistes IAM (International Association of Machinists and Aerospace Workers) ont convenu d'un horaire de travail temporaire adapté pour les employés de la chaîne de production de F-35 à l'usine de Fort Worth. Le nouvel horaire, qui débutera le 23 mai, divise chaque équipe en trois groupes. Par rotation, chaque groupe travaillera pendant deux semaines et bénéficiera ensuite d'une semaine de congé. "Cet horaire alternatif permet à Lockheed Martin de doter la chaîne de production en personnel afin de répondre à un flux de travail plus lent suite aux retards des fournisseurs. En outre, il permet d'avoir un rythme de travail qui conserve l'expertise de la main-d'œuvre qualifiée et offre la possibilité d'ajuster le travail pour mieux soutenir la production", a indiqué le constructeur. Quid pour la Belgique? Les calendriers de livraison aux États-Unis et aux forces armées alliées achetant le F-35 "seront ajustés en conséquence", mais Lockheed prévoit un retour aux niveaux de production d'avant la crise du Covid-19 "d'ici la fin de l'été ou le début de l'automne", a commenté à l'agence Bloomberg Gregory Ulmer, directeur du programme F-35. Lockheed s'était engagé à livrer 141 F-35 aux États-Unis et à ses alliés d'ici la fin de l'année, contre 134 l'an dernier. Entre 18 et 24 avions pourraient ne pas être assemblés par rapport à cet objectif, selon Gregory Ulmer. Le constructeur n'a pas précisé quels pays pourraient être concernés par ce ralentissement temporaire de la production. La Belgique a commandé 34 appareils au groupe aéronautique américain. Selon le calendrier prévu, les huit premiers seront livrés en 2023 et 2024, mais resteront aux États-Unis pour servir à la formation des pilotes et des techniciens. Les quatre suivants sont attendus à Florennes l'année suivante. Trump sème le trouble La semaine dernière, le Président américain Donald Trump a semé le trouble parmi les partenaires du programme F-35 et les clients de Lockheed Martin en menaçant de rapatrier sur le territoire des USA les éléments fabriqués à l'étranger. Donald Trump a en effet estimé que la chaîne d'approvisionnement internationale de l'avion de Lockheed Martin posait problème en cas d'arrêt éventuel de la production dans des pays étrangers. https://www.lecho.be/entreprises/defense-aeronautique/lockheed-martin-ralentit-la-production-du-f-35/10228284.html