25 septembre 2018 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Defense industry fighting DoD proposal to change performance payments

WASHINGTON — The Pentagon's proposed plan to lower the rate of progress and performance payments some companies receive on defense contracts is sending shockwaves through the industry and invited a backlash from three large trade associations.

To incentivize defense firms to work more quickly and more efficiently for the taxpayer, Pentagon leaders want to create a tiered system that recognizes high performing companies with higher performance-based payments. Contractors, however, are balking at the Pentagon's efforts to make them more accountable.

While obscure to the general public, the proposed rule changes have rattled government contractors, which argue they would choke off funding for innovation, shackle them with more bureaucracy, increase the cost of military equipment— and hurt profits.

The baseline performance- and progress-based payment rate for larger companies would be reset from 80 percent to 50 percent, with incremental increases or decreases based on new criteria proposed by DoD. If a contractor, for instance, delivers end items on time, hits milestone schedules, or avoids serious corrective action requests, it would win 10 percent bumps for each. (Small businesses would have their own schedule of incentives.)

The National Defense Industrial Association is calling on DoD to rescind the regulation and collaborate with industry to create a different rule. One objection it has is the proposed rule would determine payment rates based on companies' overall performance, as opposed to contract by contract.

“The marching orders from Congress is we have to be faster, more innovative, to do better for the warfighter,” said NDIA Senior Vice President for Policy Wesley Hallman. But, under the proposed rule, a company that wants to take on a high-risk project that fails, “will later be judged on that thing the following December. They're incentivized to take a low-risk approach.”

Though Section 831 of the 2017 National Defense Authorization Act encourages DoD to use performance payments, NDIA argues the rule violate's the law's intent and that lessening companies' cash flow would slow payments to subcontractors and sap funding for independent research and development.

“We're doing our best to let them know how this will hurt industry,” said NDIA Director of Regulatory Policy Corbin Evans.

The trade group's comments were submitted at a public meeting Sept. 14 to consider changes the Pentagon proposed in August to federal acquisitions rules, the Defense Federal Acquisition Regulations Supplement. The Defense Department is holding another public meeting, Oct. 10, before the public comment period ends on Oct. 23.

Both the Professional Services Council and the Aerospace Industries Association, which more than 300 companies in the aerospace and defense industry, also offered presentations in opposition.

The move toward better stewardship of taxpayer dollars comes amid record Pentagon budget growth and amid a reorganization of the Pentagon's acquisition, technology and logistics office, now due to finish in a few months.

The move falls in line with Under Secretary of Defense for Acquisition and Sustainment Ellen Lord's efforts to halve the timeline of major defense acquisition programs, which are notoriously slow.

“I believe the lifeblood of most industry is cash flow, so what we will do is regulate the percentage of payments or the amount of profit that can be achieved through what type of performance they demonstrate by the numbers,” Lord said in a Defense News interview last week.

Hence, “we're going to begin to reward companies through profit or through progress or performance payments, as a function of how they manage all of that, as well as quality and delivery and a variety of other things,” Lord said.

Though it's unclear whether DoD will formally move ahead with the rule by a Dec. 1 deadline, investors have already responded negatively to a reports on the changes, according to aerospace and defense sector analysts at Cowen and Company.

“It will be a scramble for companies and DoD to compile the necessary data to evaluate the rate request. Under the current draft rule, DoD would need to evaluate the rate request in just one month for all its suppliers,” Roman Schweizer, of Cowen and Company, said in a note to investors Friday. “We suspect that will be very hard the first time and suggests this year may be too hard.”

Still, Cowen analyst Cai von Rumohr downplayed the near-term effects, especially beyond the major primes. He speculated the proposed rule change will have negligible impact on contractor results in 2019 since it doesn't apply to any current contracts; it's very unlikely to go into effect before 2020, if ever; it will not apply to time and materials and fixed-price commercial terms contracts, and because it will only apply to some cost-plus contracts.

https://www.defensenews.com/industry/2018/09/24/defense-industry-fighting-dod-proposal-to-change-performance-payments

Sur le même sujet

6 juillet 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Australia plans US$190 billion defence boost over decade
Rod McGuirk The Associated PressStaff CANBERRA, AUSTRALIA -- Australia's prime minister on Wednesday announced 270 billion Australian dollars (US$190 billion) in additional defence spending over the next decade, which will include long-range missiles and other capabilities to hold enemies further from its shores. Prime Minister Scott Morrison warned that the post-pandemic world will become more dangerous and announced a renewed focus on Australia's immediate region, although its military would be open to joining U.S.-led coalitions as it did in Afghanistan and Iraq in campaigns that were in the Australian national interest. Australia had not seen such economic and strategic uncertainty in the region since the Second World War for reasons including tensions between the United States and China, he said. "This simple truth is this: Even as we stare down the COVID pandemic at home, we need to also prepare for a post-COVID world that is poorer, that is more dangerous and that is more disorderly," Morrison said. Tensions over territorial claims were rising between India and China and in the South China Sea, Morrison said. "The risk of miscalculation and even conflict is heightened," Morrison said. "Regional military modernization is at an unprecedented rate." "Relations between China and the United States are fractious at best as they compete for political, economic and technological supremacy," he added. Rory Medcalf, head of the Australian National University's National Security College, said the announcement showed Australia was "getting serious about deterrence and the prospect of armed conflict in the Indo-Pacific region." "It was only a matter of time before the Australian government made a choice about the kind of defence force that we're going to have in the 21st century with the rapid deterioration in the strategic environment in recent years," Medcalf said. "The government has accepted that the Australian military needs to be able to attempt to deter armed conflict through its capabilities and to be able to fight in our region if we have to," he added. Australia will invest in more lethal and long-range capabilities that will hold enemies further from its shores, including longer-range strike weapons and offensive cyber capabilities. To increase maritime strike capability, Australia will buy the AGM-158C anti-ship missile from the U.S. Navy at an estimated cost of AU$800 million, the government said. The new missile is a significant upgrade from Australia's current AGM-84 air-launched Harpoon anti-ship missile, which was introduced in the early 1980s. It has a range of 124 kilometres (77 miles), while the missile being purchased can exceed 370 kilometres (230 miles). The new missile will initially be used on the F/A-18F Super Hornet jet fighters but can be used by other defence aircraft. Training on the weapon system would begin next year, the government said. Australia will also invest in advanced naval strike capabilities, including long-range anti-ship and land strike weapons, and will buy long-range rocket artillery and missile systems to give the army an operational strike capability. It also plans to develop and test high-speed, long-range strike weapons, including hypersonic weapons. The announcement comes as Australia's relationship with China, its most important trading partner, is under extraordinary strain over Australian calls for an independent investigation of the pandemic. The United States, Australia's most important security partner since the Second World War, remains "the foundation of our defence policy," Morrison said. "Of course we can't match all the capabilities in our region," Morrison said. "That is why we need to ensure that our deterrence capabilities play to our strengths." https://www.ctvnews.ca/world/australia-plans-us-190-billion-defence-boost-over-decade-1.5006902
20 mai 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Contract Awards by US Department of Defense - May 19, 2020
NAVY Viasat Inc., Carlsbad, California, is awarded a $998,828,164 maximum potential value, indefinite-delivery/indefinite-quantity contract for the production, retrofits, development and sustainment of the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio Systems (JTRS) terminals. Currently, there are three variants of MIDS JTRS terminals: the Concurrent Multi-Netting-4, the Tactical Targeting Network Technology and the F-22 variant. Work will be performed in Carlsbad, California, and these terminals will continue to be procured, sustained and updated for future growth, including JTRS advanced networking waveforms such as: multifunction advanced data link, intra-flight data link and other advanced networking waveforms. The MIDS JTRS terminal is a line-of-sight radio system for collecting and transmitting broadband, jam-resistant, secure data and voice across a variety of air, sea and ground platforms. Work is expected to be complete by May 2025. Funds in the amount of $48,280,914 will be placed on contract and obligated on the first delivery order concurrent with contract award, which will meet the minimum order requirement. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $8,223,208; and other procurement (Navy) funds in the amount of $1,532,559 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 aircraft procurement (Air Force) funds in the amount of $12,135,592; other procurement (Air Force) funds in the amount of $1,645,504; and research development test and evaluation (Air Force) funds in the amount of $205,688 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 defense-wide procurement in the amount of $1,234,128; and defense National Guard and reserve equipment in the amount of $2,673,944 will be obligated at time of award and will not expire at the end of the current fiscal year. Non-appropriated funds for Foreign Military Sales (FMS) in the amount of $15,015,224; and foreign cooperative programs in the amount of $617,064 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2018 aircraft procurement (Air Force) in the amount of $3,702,384; and other procurement (Navy) in the amount of $1,295,619 will be obligated at time of award and will expire at the end of the current fiscal year. This contract combines purchases for the Navy, Air Force and MIDS Program Office, as well as purchases for NATO and all NATO nations under the FMS program. This contract was competitively procured, and two proposals were received. The Naval Information Warfare System Command, San Diego, California, is the contracting authority and awarded the contract on behalf of the MIDS Program Office (PMA/PMW-101) (N00039-20-D-0058). Data Link Solutions LLC, comprised of BAE, Wayne, New Jersey; and Collins Aerospace, Cedar Rapids, Iowa, is awarded a $998,828,164 maximum potential value, indefinite-delivery/indefinite-quantity (IDIQ) contract for the production, retrofits, development and sustainment of the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio Systems (JTRS) terminals. Work will be performed in Cedar Rapids, Iowa (50%); and Wayne, New Jersey (50%). Currently, there are three variants of MIDS JTRS terminals: the Concurrent Multi-Netting-4, the Tactical Targeting Network Technology and the F-22 variant. These terminals will continue to be procured, sustained and updated for future growth, including JTRS advanced networking waveforms such as: multifunction advanced data link, intra-flight data link and other advanced networking waveforms. The MIDS JTRS terminal is a line-of-sight radio system for collecting and transmitting broadband, jam-resistant, secure data and voice across a variety of air, sea and ground platforms. The ordering period for this IDIQ contract is through May 2025. Funds in the amount of $64,137,404 will be placed on contract and obligated on the first delivery order concurrent with contract award, which will meet the minimum order requirement. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $10,970,335; other procurement (Navy) funds in the amount of $1,802,447; and ship construction procurement (Navy) funds in the amount of $195,965 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 aircraft procurement (Air Force) funds in the amount of $16,461,060; other procurement (Air Force) funds in the amount of $1,959,650; and research development, test and evaluation (Air Force) funds in the amount of $1,175,790 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 defense-wide procurement in the amount of $1,567,720; and defense National Guard and reserve equipment in the amount of $3,331,405 will be obligated at time of award and will not expire at the end of the current fiscal year. Non-appropriated funding for Foreign Military Sales (FMS) in the amount of $20,598,117; and foreign cooperative programs in the amount of $979,825 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2018 aircraft procurement (Air Force) in the amount of $5,095,090 will be obligated at time of award and will expire at the end of the current fiscal year. This contract combines purchases for the Navy, Air Force and MIDS Program Office, as well as purchases for NATO and all NATO nations under the FMS program. This contract was competitively procured, and two proposals were received. The Naval Information Warfare System Command, San Diego, California, is the contracting authority and awarded the contract on behalf of the MIDS Program Office (PMA/PMW-101) (N00039-20-D-0057). Intercontinental Construction Contracting Inc.,* Passaic, New Jersey (N40080-20-D-0011); FBGC JV LLC,* Hampton, Virginia (N40080-20-D-0012); Pontiac Drywall Systems Inc.,* Pontiac, Michigan (N40080-20-D-0013); Maclean-Ocean JV LLC,* Bethesda, Maryland (N40080-20-D-0014); RAND Enterprises Inc.,* Newport News, Virginia (N40080-20-D-0015); and Aimcon Design Build LLC,* Harvey, Louisiana (N40080-20-D-0016), are awarded $99,000,000 for an indefinite-delivery/indefinite-quantity, multiple award design-build/design-bid build construction contract for construction projects located primarily within the Naval Facilities Engineering Command (NAVFAC) Washington area of responsibility (AOR). All work on this contract will be performed primarily within the NAVFAC Washington AOR to include District of Columbia (40%); Virginia (40%); and Maryland (20%). Intercontinental Construction Contracting Inc. is awarded initial task order at $169,821 for the construction of seven above-ground storage tanks and two pump houses at Chesapeake Beach Detachment, Maryland. The work to be performed provides repairs, new construction and alterations to shore facilities and utilities. Additionally, work may also include but are not limited to, engaging in installing and serving mechanical, electrical, plumbing, heating, air-conditioning, building's equipment and other specialized trades. Work for this task order is expected to be complete by June 2021. The term of the contract is not to exceed 24 months, with an expected completion date of May 2022. Fiscal 2020 Navy working capital funds (NWCF); and fiscal 2020 supervision, inspection and overhead contract funds in the amount of $194,821 are obligated on this award and will expire at the end of the current fiscal year. The maximum dollar value including the base period and one option year for all six contracts combined is $99,000,000. Future task orders will be primarily funded by military construction (Navy); operations and maintenance (Navy); and NWCF. This contract was competitively procured via the Beta Sam website, and 23 proposals were received. These six contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command Washington, Washington, D.C., is the contracting activity. Applied Systems Engineering Inc., Niceville, Florida, is awarded a $10,600,000 modification on an indefinite-delivery/indefinite-quantity delivery order N001781-70-D-2053 for additional quantities of Advanced Tactical Navigation units as well as various upgrades, repairs and associated support. Work will be performed in Niceville, Florida, and is expected to be complete by April 2022. This modification raises the contract ceiling to $22,259,073. This modification is being awarded on a sole-source basis in accordance with Federal Acquisition Regulation 6.302-2, Unusual and Compelling Urgency (see 10 U.S. Code 2304(c)(2)). No funds are being obligated at the time of award, and will be obligated on individual orders as they are issued. The Naval Surface Warfare Center, Dahlgren Division, Dahlgren, Virginia, is the contracting activity. W. F. Magann Corp., Portsmouth, Virginia, is awarded a $10,234,262 firm-fixed-price modification for replacement of the Dry Dock 4 north side duct bank at the Norfolk Naval Shipyard, Virginia. Work will be performed in Portsmouth, Virginia, and includes, but is not limited to, demolition of the existing terracotta duct banks and installation of structural, concrete encased duct banks for the electrical systems, shore power, industrial power, capstan power and telecommunications systems. Work is expected to be complete by July 2022. After award of this modification, the cumulative contract value will be $174,551,064. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $10,234,262 are obligated on this award and will expire at the end of the current fiscal year. The Naval Facilities Engineering Command Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-19-C-9014). AIR FORCE Ventech Inc., Largo, Maryland, has been awarded a $99,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for performance of the Base Level Software Support V contract. This contract provides for purchasing of commercial software, software maintenance and bundled maintenance, filing purchases and license information database operations and maintenance, report generation and general support to address software, documentation and licensing issues. Work will be performed at Eglin Air Force Base, Florida, and is expected to be completed May 30, 2030. The period of performance for this services contract is for a five year base period with one five year option. This award is the result of competitive acquisition and 18 offers were received. Fiscal 2020 research, development, test and evaluation funds in the amount of $106,723 will be obligated at the time of award. Air Force Testing Center, Eglin AFB, Florida, is the contracting activity (FA2486-20-D-0009). Survice Engineering Co. LLC, Belcamp, Maryland, has been awarded a not-to-exceed $89,489,901 indefinite-delivery/indefinite-quantity contract for the Defense Technical Information Center (DTIC). This contract provides for the acquisition, storage, retrieval, synthesis, analysis and dissemination of 22 technical focus areas and scientific technical information for the Department of Defense Information Analysis Center mission. Work will be performed at Fort Belvoir, Virginia, and is expected to be completed Dec. 31, 2026. This contract is the result of a competitive acquisition and two offers were received. Fiscal 2020 research, development, test and evaluation funds in the amount of $3,600 will be obligated at the time of award. The Air Force Installation Contracting Center, Offutt Air Force Base, Nebraska, is the contracting activity (FA8075-20-D-0001). Sea Box Inc., East Riverton, New Jersey, has been awarded a $77,454,898 requirements order for basic expeditionary airfield resources expandable bicon shelter hygiene systems for the Support Equipment and Vehicles division at Robins Air Force Base. The order provides for the production of 43 initial quantities and best estimated quantities (BEQ) of five each under the basic period, BEQ of 26 for Option Period One, BEQ of 44 each for Option Period Two, BEQ of 30 each for Option Period Three, and BEQ of 30 each for Option Period Four. Work will be performed in East Riverton, New Jersey, and is expected to be completed May 18, 2024. This award is the result of a sole-source acquisition. Fiscal 2019 other procurement funds in the amount of $15,422,303; and fiscal 2020 other procurement funds in the amount of $2,500,914 are being obligated at the time of award. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8534-20-F-0026). ManTech SRS Technologies Inc., Herndon, Virginia, has been awarded a $20,916,894 cost-plus-fixed-fee and firm-fixed-price modification (P00056) to contract FA8811-10-C-0002 for systems engineering and integration services. Work will be performed at Los Angeles Air Force Base, California; Vandenberg AFB, California; and Cape Canaveral Air Force Station, Florida. Work is expected to be completed Sept. 22, 2020. Fiscal 2020 procurement funds in the amount of $17,673,379; fiscal 2020 operations and maintenance funds in the amount of $1,503,797; and fiscal 2020 research development test and evaluation funds in the amount of $729,723 are being obligated at the time of award. Total cumulative face value of the contract modification and option is $20,916,894. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. ARMY Vigil America Inc., Deland, Florida, was awarded a $49,000,000 firm-fixed-price contract for the Electronic Automatic Activation Device. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of May 14, 2027. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911QY-20-D-0015). WASHINGTON HEADQUARTERS SERVICES UPDATE: The contract announced yesterday, May 18, 2020, to Chenega Healthcare Services LLC, San Antonio, Texas (HQ0034-20-D-0008), to provide COVID-19 contact tracing for Pentagon support services, was actually awarded today. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2192036/source/GovDelivery/
2 novembre 2018 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Contract Awards by US Department of Defense - November 1, 2018
ARMY American Mechanical Inc.,* Fairbanks, Alaska (W911KB-19-D-0001); Osborne Construction Co.,* Kirkland, Washington (W911KB-19-D-0002); and Patrick Mechanical LLC,* Fairbanks, Alaska (W911KB-19-D-0003), will compete for each order of the $48,000,000 firm-fixed-price contract for design, construction and repair of various utilidor systems in military family housing on Eielson Air Force Base, Alaska. Bids were solicited via the internet with six received. Work locations and funding will be determined with each order, with an estimated completion date of Oct. 31, 2023. U.S. Army Corps of Engineers, Anchorage, Alaska, is the contracting activity. DynCorp International LLC, Fort Worth, Texas, was awarded an $18,153,589 modification (P00199) to contract W58RGZ-13-C-0040 for aviation field maintenance services. Work will be performed in Afghanistan, Iraq and Germany, with an estimated completion date of Dec. 31, 2018. Fiscal 2019 operations and maintenance funds in the amount of $18,153,589 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. U.S. SPECIAL OPERATIONS COMMAND Boeing Co., Ridley Park, Pennsylvania, has been awarded a $42,835,847 cost-plus-fixed-fee contract modification under delivery order H92241-18-F-0022-P00002 for four new build MH-47G rotary wing aircrafts. The contract modification satisfies an urgent need to sustain U.S. Special Operations Forces heavy assault, rotary wing aircrafts. The contract modification is funded with fiscal 2018 procurement; and aircraft procurement, Army funds. The majority of the work will be performed in Ridley Park. This contract modification is a non-competitive award and is in accordance with Fair Acquisition Regulation 6.302.1. U.S. Special Operations Command, Tampa, Florida, is the contracting activity. AIR FORCE The Boeing Co., St. Louis, Missouri, has been awarded a $14,592,654 firm-fixed-price, cost-plus-fixed-fee, time-and-material contract for the F-15 Royal Saudi Air Force (RSAF) Aircraft Maintenance Debrief System (AMDS). This contract provides administration and support to the RSAF F-15C, D, S and SA aircraft sustainment program at up to six locations throughout the Kingdom of Saudi Arabia. Services acquired under this effort include, but are not limited to, providing fully-trained AMDS personnel to operate, maintain AMDS equipment and to provide AMDS familiarization training to RSAF members that will enable them to safely and efficiently operate all AMDS equipment. Work will be performed in the Kingdom of Saudi Arabia and is expected to be completed Nov. 4, 2023. Foreign military sales in the amount of $8,744,949 are being obligated at the time of award. This award is the result of a sole-source acquisition. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8505-19-C-0001). (Awarded Oct. 31, 2018) NAVY Detyen's Shipyards Inc.,* North Charleston, South Carolina, is awarded an $8,175,517 firm-fixed-price contract for a 59-calendar day shipyard availability for the mid-term availability of USNS Arctic (T-AOE 8). Work will include furnishing general services for the ship, collection holding tank, piping repairs, 4 overhead steel replacement, tank top steel replacements, main switch board cleaning, refurbish unrep saddles, winches, and drive chains, vent systems cleaning, underwater propellers cleaning and generator cleaning. The contract includes options which, if exercised, would bring the total contract value to $8,175,517. Work will be performed in Charleston, South Carolina, is expected to be completed by Jan. 23, 2019. Navy working capital funds in the amount of $8,175,517 are obligated and will not expire at the end of the current fiscal. This contract was a small business set-aside with companies solicited via the Federal Business Opportunities website, with one offer received. The Navy's Military Sealift Command, Norfolk, Virginia, is the contracting activity (N3220519C6001). Raytheon Co., Space and Airborne Systems, McKinney, Texas, is being awarded a $7,676,741 cost-plus-fixed-fee delivery order (N0001919F0270) against a previously issued basic ordering agreement (N00019-15-G-0003). This order provides for completion of Engineering Change Proposal (ECP) 0043 for the Advanced Targeting Forward Looking Infrared Processor and Video Obsolescence Avoidance system upgrade. This ECP productionizes the Input Image Processor Version 2 (I2P2) Circuit Card Assembly (CCA); updates associated support test equipment; and performance of I2P2 CCA qualification to enable future growth and mitigate potential obsolescence issues. Work will be performed in McKinney, Texas, and is expected to be completed in November 2019. Fiscal 2018 aircraft procurement (Navy) funds in the amount of $7,676,741 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1679376/source/GovDelivery/

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