GE CEO forecasts heavy aerospace demand, voices support for Boeing CEO

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  5 août 2020 | International, Terrestre

  To keep weapon sales in place, US offers new options for payment

  By: Aaron Mehta WASHINGTON — The United States is developing new options for arms customers as a way to ensure allies and partners don't drop planned procurements as the world economy remains in shock from the impacts of COVID 19. Among the options, according to outgoing Defense Security Cooperation Agency head Lt. Gen. Charles Hooper, are allowing foreign countries to finance arms procurement through U.S. bank loans and altering existing payment schedules to stretch the costs over time. “The bottom line here is, we are willing to work with our allies and partners, when they raise the challenges that they have, to find ways for them to continue to buy American and to ensure that they can pay for the equipment along a payment schedule that reflects their own economic conditions,” Hooper said. During an exclusive exit interview with Defense News, Hooper declined to say which countries have already approached his agency about economic impact from the disease, but said that there are “certainly” customer nations that have reached out. “There are partners that, we're already seeing that they are having challenges. So we're standing ready to work with them. As soon as we can gain an appreciation and the understanding of the challenges, we can find ways to help them,” Hooper said. Hooper talked with Defense News two weeks before his Aug. 3 retirement. He is succeeded by Heidi Grant, the head of the Defense Security Technology Administration, a move that marks the first time a civilian has led the office since a previous agency was recognized into the current DSCA structure in 1998. The general expressed no concerns over that move, in large part, he said, because of Grant, a fixture in the international security cooperation world. Grant will have to hit the ground running, given the potential impact from COVID on the world economies. The good news, Hooper said, is that by March, DSCA had concluded that the global economy would be hurt by the disease and set up an interagency working group, called the Operations Planning Group, to study program-level impacts from global trends and develop solutions. The first step Hooper's team took was to revise the collection process of foreign payment in order to make them “a bit more flexible, to accommodate those partners that may be having some economic difficulties or may have reprioritized their budgets towards for example, economic recovery and away from defense.” Those options include delaying payments on planned procurements to future years, creating new payment plans for ongoing procurement efforts, and returning funds currently on deposit with the United States to the customer nations as well as new financing strategies. “One of the things we did is we are allowing our partners to draw on standby letters of credit from foreign banks operating in the United States, according to U.S. banking rules,” Hooper explained. “That offers a nation an opportunity to draw, for example, in that case, a standby letter of credit on one of their banks that operates in the United States, under United States banking rules, which ensures that there's no fiduciary risk to the United States.” DSCA officials had been considering adding such an option for some time, but the economic downturn pushed the agency to start offering it for customer nations, Hooper added. Lucie Béraud-Sudreau, director of the Arms and Military Expenditure Programme at the Stockholm International Peace Research Institute, said that option sounds different from funding plans that have existed for some time in Europe, where specific entities in countries are responsible for guaranteeing arms-recipient states' loans thanks to the state treasury. “There are a number of economic factors globally, that we anticipate will likely have an impact on country's abilities to move forward,” Hooper said. “Obviously, energy prices are lower, and those countries all over the world that specialize in energy are going to see a fall in revenue. We see countries that, as a result of the pandemic, are having to shift funds from their defense budgets to more domestic missions like economic recovery and other things.” In addition to oil-reliant nations in the Middle East, Béraud-Sudreau said to watch the Pacific region, where “many countries have already decided to cut their military spending for this year, and planning decreases for 2021.” Indonesia, Thailand, South Korea, and the Philippines are among the nations that have already announced plans to cut defense spending, while Singapore is seeing delays in weapon deliveries due to supply chain issues. “If there are limited orders in 2020-2021, there will be repercussions later on, as these companies work on long-term projects. Hence the pressure, on both sides of the Atlantic, for the defense sector to be part of economic recovery packages and high levels of military expenditure,” she said. Over the course of his time at DSCA, Hooper oversaw almost 18,300 Foreign Military Sales actions, including 5,800 new agreements and various amendments and modifications to existing agreements, according to agency figures. He reduced three different surcharges on customers, saving customers millions of dollars as well. Also, timelines shrunk, with DSCA offering 50 percent of all new FMS cases that flow through the process to partner nations in 49 days or less by Hooper's exit. And while Hooper did not want to preview what weapon sales totals for fiscal 2020 will be, he did say that the United States remains “on a very positive trajectory... We remain the global partner of choice. And I'm very optimistic that we're going to continue to see positive trends in our foreign military sales this year and in the years to come.” https://www.defensenews.com/pentagon/2020/08/04/to-keep-weapon-sales-in-place-us-offers-new-options-for-payment/

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  24 janvier 2019 | International, Aérospatial

  Change of plans: Seoul decides to start from scratch with helo competition

  By: Jeff Jeong SEOUL — It looked like Italy's aerospace group Leonardo was going to be an easy winner for South Korea's second batch of anti-submarine helicopters. The procurement program would seek 12 more AW-159 “Wildcat” helicopters, with no other competitors for the $840 million program. But the Defense Acquisition Program Administration, or DAPA, threw a curveball, deciding to accept a U.S. proposal for alternate option and to begin the competitive bidding process from the scratch. The plan for the maritime operational helicopter, or MOH, was originally to sign a direct commercial deal with a foreign helicopter maker, with three bidders — Leonardo, Lockheed Martin and NH Industries — showing interest. The two latter contenders failed to submit their proposals by the Oct. 31 deadline, leaving Leonardo seemingly as the only remaining bidder. According to sources from DAPA, however, the U.S. government in November sent a letter of price and availability of Lockheed Martin's MH-60R Seahawk, causing South Korea's arms procurement officials o rethink the acquisition approach. “We've decided to consider the U.S. FMS option,” DAPA spokesman Park Jung-eun told Defense News. “We're going to weigh in on both options of commercial and FMS contracts.” As dictated by acquisition regulation, two successive failed biddings mean that the agency can make a private contract with a sole bidder, but that's not mandatory. The agency is expected to issue a renewed request for proposals as early as March, according to DAPA officials. Leonardo would be a direct buy, while the Sikorsky bid would be a foreign military sale. Leonardo said in a statement that it would still pursue the South Korean naval helicopter program “in a fair and transparent manner.” A Leonardo spokesman said the AW-159 is optimized for the Korean theater of operations, pointing to an active electronically scanned array (AESA) radar for detecting North Korea's coastal weapon system and a missile firing range that is more than three times longer than Seahawk. “We do not really know about the details of the U.S. Navy's latest proposal,” a Lockheed Martin communications official said, declining to elaborate. “After an RFP is issued, we could be able to discuss with the service.” Pundits here expressed different reactions to the renewed MOH bidding process. Shin In-kyun, head of Korea Defense Network, a Seoul-based private defense think tank, said it's a better opportunity to acquire state-of-the-art naval helicopters with better performances. “The Seahawk is estimated to be more expensive by 20 to 30 percent than the Wildcat, but the former has performances about two times better than the latter,” said Shin. “The unit price of the MH-60R could be lowered through the FMS, as the U.S. and Indian Navies are also said to be procuring more than 40 MH-60Rs.” Shin Jong-woo, a senior analyst at the Korea Defense & Security Forum, said an FMS deal may not guarantee economic benefit for South Korea. “You give up offset programs should an FMS deal be made,” he said. “I'm not really sure how much the unit cost of the MH-60R could be lowered. If lowered, we may have to lose some optional functions of the helicopter.” Moreover, a possible MH-60R selection will bring more work to change the designs of warships, he added. “The Navy's existing warships, including the KDX-III Aegis destroyer, are not able to accommodate the MH-60R, so it's inevitable to change the design should the American helicopter be chosen.” The South Korean Navy currently operates eight AW-159s acquired under a 2012 deal. The helicopters fly missions aboard KDX-series destroyers and Incheon-class guided-missile frigates. The service plans to commission at least 12 more new frigates fitted with a flight deck and a hangar that can accommodate one Lynx helicopter. https://www.defensenews.com/2019/01/23/change-of-plans-seoul-decides-to-start-from-scratch-with-helo-competition

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

  Contract Awards by US Department of Defense - July 22, 2020

  AIR FORCE AECOM Management Services Inc., Germantown, Maryland (FA3002-20-D-0012); AKIMA Logistics Services LLC, Herndon, Virginia (FA3002-20-D-0013); DynCorp International LLC, Fort Worth, Texas (FA3002-20-D0010); Jacobs Technology Inc., Fort Walton Beach, Florida (FA3022-20-D-0014); Leidos Inc., Reston, Virginia (FA3002-20-D-0011); M1 Support Services LP, Denton, Texas (FA3002-20-D-0015); PAE Services LLC, Arlington, Virginia (FA3002-20-D-0016); and Vertex Aerospace LLC, Madison, Missouri (FA3002-20-D-0017), have been awarded a maximum $14,000,000,000 multiple-award, indefinite-delivery/indefinite-quantity (IDIQ) contract for Aircraft Maintenance Enterprise Solution -- a strategic sourcing vehicle for Air Force-wide contracted aircraft maintenance. The contractors will provide all organizational-level maintenance services for all aircraft listed in each individual task order performance work statement, which can include any aircraft platform (excluding rotary wing, tiltrotor and remotely piloted aircraft). Because this is an IDIQ, the location of performance is not known at this time and will be cited on individual task orders. Generally, work will be performed at government facilities and is expected to be completed Sept. 14, 2030. This award is the result of a competitive acquisition with 19 offers received. No funds are being obligated at the time of award. The Air Force Installation Contracting Center, Joint Base San Antonio-Randolph, Texas, is the contracting activity (FA3002-19-R-A001). DynCorp International LLC, Fort Worth, Texas, has been awarded a $17,760,615 modification (P00004) to contract FA3002-19-D-A004 to increase the ceiling for the firm-fixed-price, indefinite-delivery/indefinite-quantity contract for J85 engine maintenance. This contract provides for managing the full cycle of production by planning, scheduling, directing and controlling all maintenance on jet engines and support equipment, as well as monitoring serviceable base stock levels and target serviceable requirements of each customer. Work will be performed at Laughlin Air Force Base, Texas, and is expected to be completed Sept. 30, 2020. No funds are being obligated at the time of award. This award is the result of a sole-source acquisition. The Air Force Installation Contracting Center, Joint Base San Antonio-Randolph, Texas, is the contracting activity. Northrop Grumman Systems Corp., Herndon, Virginia, has been awarded a $16,284,463 cost-plus-award-fee undefinitized task order under the ground subsystems sustainment contract (FA8214-15-D-0001) for the Minuteman III general sustainment. Work will be performed in Layton, Utah, and is expected to be completed Aug. 31, 2021. Fiscal 2020 operations and maintenance funds in the amount of $8,142,232 are being obligated at the time of award of the base period. The Air Force Nuclear Weapons Center, Hill Air Force Base, Utah, is the contracting activity (FA8214-20-F-0082). Advantor IDS Inc., Orlando, Florida, has been awarded a $9,999,999 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for intrusion detection system (IDS) supplies and ancillary services. The contractor shall provide all supplies (hardware) and complete all installation of all IDS and test operations. Work will be performed at Edwards Air Force Base, California, and is expected to be completed July 16, 2025. This award is the result of sole-source acquisition. Fiscal 2020 research, development, test and evaluation funds in the amount of $237,456 are being obligated at the time of award. The Directorate of Contracting, Edwards AFB, California, is the contracting activity. CORRECTION: The contract announced on July 20, 2020, to BAE Systems Technology Solutions & Services Inc., Rockville, Maryland, for the Instrumentation Range Support Program, has not yet been awarded. CORRECTION: The contract announced on July 20, 2020, to six firms for design-build construction efforts at Fairchild Air Force Base, Washington, included an incorrect location for RORE Inc. (FA4620-20-0009). The firm is actually located in Gig Harbor, Washington. ARMY Lockheed Martin Corp., Orlando, Florida, was awarded a $702,881,910 modification (P00042) to contract W31P4Q-18-C-0130 for procurement of Hellfire missiles. Work locations and funding will be determined with each order, with an estimated completion date of Sept. 30, 2023. Fiscal 2010, 2011, 2018, 2019 and 2020 other procurement (Army) funds in the amount of $702,754,471 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Southwest Valley Constructors, Albuquerque, New Mexico, was awarded a $24,577,981 modification (P00016) to contract W912PL-19-C-0015 to design and construct approximately 31.65 miles of three-phase power distribution, lighting, closed-circuit television camera, linear ground detection system and shelters for the Barrier Wall Project. Work will be performed in Lukeville, Arizona, with an estimated completion date of Sept. 7, 2021. Fiscal 2020 operations and maintenance (Army) funds in the amount of $24,577,981 were obligated at the time of the award. U.S. Army Corps of Engineers, Albuquerque, New Mexico, is the contracting activity. Agile Infrastructure Services LLC,* Pinehurst, Idaho, was awarded a $13,000,000 modification (P00010) to contract W9124C-15-D-0005 for construction, repair and maintenance of installation facilities on Fort Jackson, South Carolina. Bids were solicited via the internet with nine received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 17, 2020. U.S. Army 419th Contracting Support Brigade, Fort Jackson, South Carolina, is the contracting activity. (Awarded July 15, 2020) Joseph B. Fay Co., Pittsburgh, Pennsylvania, was awarded a $12,938,950 firm-fixed-price contract for the repair and rehabilitation of the gate hoist machinery and the performance of control-system upgrades at the Montgomery Locks and Dam. Bids were solicited via the internet with three received. Work will be performed in Monaca, Pennsylvania, with an estimated completion date of Oct. 10, 2022. Fiscal 2019 and 2020 civil operations and maintenance funds in the amount of $12,938,950 were obligated at the time of the award. U.S. Army Corps of Engineers, Pittsburgh, Pennsylvania, is the contracting activity (W911WN-20-C-8002). DEFENSE THREAT REDUCTION AGENCY L3 Applied Technologies Inc., a subsidiary of L3Harris Technologies Inc., San Leandro, California, will be awarded a $73,752,927 cost-plus-fixed-fee contract (with one firm-fixed-price line item for long lead time materials) for X-ray simulators for test and evaluation of nuclear survivability. Work will be performed at the contractor's location in San Leandro, California, and is expected to be completed by May 2025. This award is the result of a sole-source acquisition. Fiscal 2020 research, development, test and evaluation funds in the amount of $3,827,342 will be obligated at the time of award. The Defense Threat Reduction Agency, Fort Belvoir, Virginia, is the contracting activity (HDTRA1-20-C-0038). NAVY Crowley Government Services, Jacksonville, Florida, is awarded a $24,070,898 firm-fixed-price contract with reimbursable elements extension to continue the operation and maintenance of five T-AGOS ocean surveillance ships and two T-AGM missile range instrumentation ships. This extension includes one six-month base and two six-month option periods which, if exercised, will bring the cumulative value of this contract to $450,127,044. Work will be performed at sea worldwide. The following ships will be worked on: USNS Victorious T-AGOS 19; USNS Able T-AGOS 20; USNS Effective T-AGOS 21; USNS Loyal T-AGOS 22; USNS Impeccable T-AGOS 23; USNS Invincible T-AGM 24; and the USNS Howard T-AGM 25. Work is expected to be completed by January 2021. Navy working capital funds in the amount of $24,070,898 are obligated for fiscal 2020 and fiscal 2021 and will not expire at the end of the fiscal year. This contract extension was not competitively procured. The contract was prepared under the provisions of 10 U.S. Code §2304(c)(1), as implemented by Federal Acquisition Regulation 6.302-1(a)(2)(iii). There is only one responsible source and no other supplies or services will satisfy agency requirements. The Military Sealift Command, Norfolk, Virginia, is the contracting activity (N62387-15-C-2505). S&S Concrete Construction,* Leesburg, Georgia, is awarded a $10,000,000 maximum amount, indefinite-delivery/indefinite-quantity construction contract for asphalt paving and minor concrete work at Marine Corps Logistics Base, Albany, Georgia. No task orders are being issued at this time. The work will be performed in Albany, Georgia. The term of the contract is not to exceed 60 months and work is expected to be completed by September 2025. Fiscal 2020 operations and maintenance (Navy) (O&M, N) contract funds in the amount of $5,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by O&M, N. This contract was competitively procured via the Navy Electronic Commerce Online website and eight bids were received. The Naval Facilities Engineering Command Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-20-D-0101). National Steel and Shipbuilding Co., San Diego, California, is awarded a $10,000,000 cost-plus-fixed-fee modification to previously awarded contract N00024-18-C-4404 for USS Bonhomme Richard (LHD-6) emergency firefighting support, dewatering, safety and initial clean-up efforts. Work will be performed in San Diego, California, and is expected to be completed by November 2020. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $7,700,000 was obligated at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Southwest Regional Maintenance Center, San Diego, California, is the contracting activity. Lockheed Martin Rotary and Mission Systems, Moorestown, New Jersey, is awarded a $7,634,002 firm-fixed-price modification to previously awarded contract N00024-14-C-5106 for the production and delivery of AEGIS weapon system MK 6 MOD 1 spares for new construction and AEGIS modernization guided missile destroyers. Work will be performed in Clearwater, Florida (90%); and Moorestown, New Jersey (10%), and is expected to be completed by April 2022. Fiscal 2020 other procurement (Navy); and 2018 shipbuilding and conversion (Navy) funding in the amount of $7,634,002 will be obligated at the time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Patriot Construction Co., Dunkirk, Maryland, is awarded a $7,173,707 firm-fixed-price contract for construction of training facilities at Marine Corps Base (MCB), Camp Lejeune, North Carolina. Work will be performed in Camp Lejeune, North Carolina. The work to be performed is for the construction of Special Operations Forces Human Performance Training Facilities, miscellaneous supporting structures, modifications to buildings RR-136 and RR-136A, utilities, parking, roadways and site work. The structures will be single-story steel frame buildings with brick veneer over metal studs, standing seam metal roofs, metal soffits, translucent wall panels and mezzanines. Special construction features include soil surcharge loads and storm water best management practices. Electrical systems include primary power distribution; lighting; energy monitoring/control systems; intrusion detection system; telephone/data and switch/server rooms; electrical switch gear; transformers; circuits; and fire alarms. Mechanical systems include plumbing; fire protection; compressed air; dehumidification; air conditioning systems; a chiller yard; and digital controls. Information systems include telephone, data, local area network, mass notification and intercom. Site work will include building utility systems; traffic control; parking; domestic water; fire protection water; sanitary sewer; sewage conveyance; propane gas networks; perimeter security fencing; gates; storm water; management; fiber/copper communications; cable television; and area lighting. Construction includes sustainable features complying with high performance sustainable building guiding principles. Work is expected to be completed by February 2022. Fiscal 2019 military construction (Navy) contract funds in the amount of $7,173,707 are obligated on this award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website and three proposals were received. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-20-C-0142). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2283344/source/GovDelivery/