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23 juillet 2020 | International, Aérospatial

Lockheed, Boeing Got Half of $2.3 Billion in Pentagon Virus Cash

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Lockheed Martin Corp. and Boeing Co. received about half of an initial $2.3 billion in increased, accelerated payments the Pentagon provided contractors to help companies' cash flows after the Covid-19 pandemic erupted in the U.S.

The initial infusion was included in $13 billion in regular, periodic progress payments paid to the companies, according to newly released defense figures. Lockheed Martin initially received $685 million while Boeing got $670 million, according to a Pentagon statement to Bloomberg News

In a separate statement, Lockheed Martin said that modifications to existing contracts resulted in additional accelerated payments to the company, increasing its total received to $1.1 billion by June 30, “all of which we have flowed down to our supply base.”

Lockheed and Boeing are the top two U.S. defense contractors, so they were expected to get the biggest share of the funds. Other companies receiving the accelerated payments include:

  • Raytheon Technologies Corp.: $410 million
  • L3 Harris Technologies Inc.: $74 million
  • The Boeing/Lockheed United Launch Alliance LLC: $70 million
  • Northrop Grumman Corp.: $70 million

Another $321 million went to other companies.

The companies are benefiting from a policy the Pentagon announced in March, just as the pandemic was building in the U.S., that provided for faster, and bigger, payments to companies. The move was intended to guarantee that critical national security contracts -- including the production of key weapons systems and supplies -- weren't interrupted by companies having problems accessing cash or credit. The extra funding would ensure production lines were able to stay open.

The Defense Department's move meant that larger firms could get as much as 90% of their payments for contracts in progress, up from 80% previously. For smaller businesses, which might be more susceptible to virus impacts, the rate rose to 95% from 90%.

As the initial funds were identified, the Pentagon “worked with each of the major primes to ensure that they were identifying at risk companies in their supply chain and flowing down payments to those companies, as well as all companies doing work for the prime,” said the statement.

The major contractors “have been flowing down payments, in some cases more than the payments received from DOD,” it said.

Pentagon officials initially estimated in March about $3 billion would be paid but that number included a potential $700 million payment on a long-standing contract that further analysis deemed was not necessary.

In addition to the accelerated progress payments, the Air Force in April released to Boeing $882 million withheld from the company over current deficiencies with its KC-46 military tanker program as part of Covid-19 relief efforts.

After the program was announced, Senator Elizabeth Warren, who serves on the Armed Services Committee, expressed concern about its oversight. In particular, the Massachusetts Democrat questioned whether companies might try to divert the increased payments for stock buybacks, dividends or executive pay.

Pentagon Undersecretary for Acquisition and Sustainment Ellen Lord in a May 15 letter to Warren said that hasn't been the case.

“Companies do not divert payments for incurred costs to share buybacks, dividends or executive salaries because contractors must have already incurred costs before they receive the increased progress payments,” Lord wrote.

https://www.bloomberg.com/news/articles/2020-07-22/lockheed-boeing-got-half-of-2-3-billion-in-pentagon-virus-cash

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  • Contract Awards by US Department of Defense - June 25, 2020

    26 juin 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contract Awards by US Department of Defense - June 25, 2020

    U.S. SPECIAL OPERATIONS COMMAND L3 Unmanned Systems Inc., Ashburn, Virginia (H92408-20-D-0001); Precision Integrated Programs LLC Newberg, Oregon (H92408-20-D-0002); Arcturus UAV Inc., Petaluma, California (H92408-20-D-0003); Insitu Inc., Bingen, Washington (H92408-20-D-0004); Wildflower International Ltd., Santa Fe, New Mexico (H92408-20-D-0005); and AAI Corp., doing business as Textron Unmanned Systems Inc., Hunt Valley, Maryland (H92408-20-D-0006), is awarded six indefinite-delivery/indefinite-quantity contracts with a maximum combined ceiling of $975,000,000 for Mid-Endurance Unmanned Aircraft Systems IV intelligence, surveillance and reconnaissance (ISR) services in support of U.S. Special Operations Command enterprise requirements worldwide. This multiple-award acquisition supports competition at the task-order level to ensure the most capable platforms and payloads provide real-time, responsive airborne ISR solutions to Special Operations Forces. Fiscal 2020 operations and maintenance funds in the amount $1,500 have been obligated for each contract at the time of award. The contracts were awarded competitively through a full and open competition with 10 proposals received. U.S. Special Operations Command, Tampa, Florida, is the contracting activity. ARMY The Boeing Co., Mesa, Arizona, was awarded a $439,179,677 modification (P00062) to contract W58RGZ-16-C-0023 for new-build Apache AH-64E aircraft and Longbow crew trainers. Work will be performed in Mesa, Arizona, with an estimated completion date of March 1, 2025. Fiscal 2020 Foreign Military Sales (Morocco) funds in the amount of $439,179,677 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. BAE Systems Inc., York, Pennsylvania, was awarded a $266,865,094 modification (P00039) to contract W56HZV-18-C-0133 for Bradley A4 Production Option Two, which awards 159 vehicles. Work will be performed in York, Pennsylvania, with an estimated completion date of March 31, 2023. Fiscal 2019 and 2020 weapons and tracked combat vehicle procurement (Army) funds in the amount of $266,865,094 were obligated at the time of the award. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity. BHI Construction LLC,* Harrisburg, South Dakota (W912MM-20-D-0001); G.A. Johnson Construction Inc.,* Harrisburg, South Dakota (W912MM-20-D-0002); Golden Rule Construction Co. Inc.,* Sioux Falls, South Dakota (W912MM-20-D-0003); Howe Inc.,* Sioux Falls, South Dakota, Dakota (W912MM-20-D-0004); MDM Construction LLC.,* West Fargo, North Dakota (W912MM-20-D-0005); and Sunkota Construction Inc.,* Sioux Falls, South Dakota (W912MM-20-D-0006), will compete for each order of a $20,000,000 firm-fixed-price contract to support the National Guard with construction projects. Bids were solicited via the internet with seven received. Work locations and funding will be determined with each order, with an estimated completion date of June 24, 2025. U.S. Property and Fiscal Office, Rapid City, South Dakota, is the contracting activity. Orion Marine Construction Inc., Tampa, Florida, was awarded a $14,648,100 firm-fixed-price contract for pipeline dredging. Bids were solicited via the internet with three received. Work will be performed in Port Mansfield, Texas, with an estimated completion date of March 1, 2021. Fiscal 2019 civil construction funds in the amount of $14,648,100 were obligated at the time of the award. U.S. Army Corps of Engineers, Galveston, Texas, is the contracting activity (W912HY-0C0021). NAVY Northrop Grumman Systems Corp., San Diego, California, is awarded a $333,401,760 modification (P00007) to previously-awarded fixed-price-incentive-firm-target contract N00019-19-C-0008. This modification exercises options for the production and delivery of three low-rate initial production MQ-4C Triton unmanned aircraft, two main operating bases and one forward operating base in an integrated functional capability-four and multiple-intelligence configuration, with associated export compliance support for the government of Australia. Work will be performed in San Diego, California (23.3%); Red Oak, Texas (13%); Palmdale, California (11.5%); Linthicum, Maryland (9.4%); Salt Lake City, Utah (9.3%); Bridgeport, West Virginia (5.2%); McClellan, California (4.7%); Indianapolis, Indiana (4.5%); Moss Point, Mississippi (3.3%); Waco, Texas (2.1%); San Clemente, California (1.5%); Newton, North Dakota (1%); various locations within the continental U.S. (9.8%); and various locations outside the continental U.S. (1.4%). Work is expected to be completed by April 2025. Foreign cooperative project funds for $27,601,190 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. General Dynamics Information Technology Inc., Falls Church, Virginia, is awarded a $38,824,217 firm-fixed-price, indefinite-delivery/indefinite-quantity contract to provide MK-41 Vertical Launch System repair and refurbishment. Work will be performed in Norfolk, Virginia, and potentially other locations based only on an emergent basis. Work is expected to be completed by June 2021. If options are exercised, work will be completed by June 2025. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $5,000 (for the minimum guarantee) will be obligated at time of award and will expire at the end of the current fiscal year. This contract was procured as full and open competition via the beta.SAM.gov website and one offer was received. The Mid-Atlantic Regional Maintenance Center, Norfolk, Virginia, is the contracting activity (N50054-20-D-0006). The Boeing Co., St. Louis, Missouri, is awarded a $16,543,143 firm-fixed-price order (N00019-20-F-0870) against previously-issued basic ordering agreement N00019-16-G-0001. This order procures retrofit modification upgrades to the series aircrafts' F/A-18 Block II Super Hornet and Growler display suites within the Block III Super Hornet and Growler Advanced Cockpit Systems. Work will be performed in St. Louis, Missouri (65%); Mesa, Arizona (15%); China Lake, California (10%); and Ft. Walton Beach, Florida (10%), and is expected to be completed by February 2025. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $15,075,223; and Foreign Military Sales funds in the amount of $1,467,920 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. Q.E.D. Systems Inc.,* Virginia Beach, Virginia, is awarded a $14,193,833 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract for Marine Gas Turbine Alteration Installation Team services in support of the Navy's Marine Gas Turbine (MGT) program. Work will be performed at various locations throughout the world based on each individual task order. The purpose of the contract is to provide for the installation of shipboard changes in accordance with approved ship change documents and to effect repairs and troubleshooting in accordance with government specifications on ships which utilize MGTs. Work is expected to be completed by June 2026. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $400,000 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was a small business set-aside and competitively procured via the Contract Opportunities website at beta.SAM.gov and two offers were received. The Naval Surface Warfare Center, Philadelphia Division, Philadelphia, Pennsylvania, is the contracting activity (N64498-20-D-4015). L3 Harris Technologies Inc., Palm Bay, Florida, is awarded an $11,688,708 modification (P00016) to previously-awarded firm-fixed-price contract N00421-17-C-0024. This modification is for the procurement of 133 Fibre Channel Network switches in support of F/A-18 Lot 44 requirements for the EA-18 Growler, F/A-18E/F Super Hornet and E-2D Hawkeye aircraft. Work will be performed in Malabar, Florida, and is expected to be completed by November 2022. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $11,688,708 will be obligated at the time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. General Dynamics National Steel and Shipbuilding Co., San Diego, California, is awarded an $11,172,403 modification to previously-awarded contract N00024-18-C-4439 to extend the delivery date of the USS Cowpens (CG 63) fiscal 2018 modernization period from December 28, 2019, to November 25, 2020, in order to complete ship repairs and alterations. Work will be performed in San Diego, California, and is expected to be completed by November 2020. Fiscal 2018 operations and maintenance (Navy) funding in the amount of $11,172,403 will be obligated at time of award and will not expire at the end of the current fiscal year. The use of fiscal 2018 operations and maintenance (Navy) funds was approved by the assistant secretary of the Navy (financial management and comptroller) on May 27, 2020, to fund within scope changes for this availability. The Southwest Regional Maintenance Center, San Diego, California, is the contracting activity. MISSILE DEFENSE AGENCY Kepler Research Inc., Woodbridge, Virginia, is being awarded a $73,119,865 competitive cost-plus-fixed-fee level-of-effort contract with a two-year base value of $16,925,921 and three one-year options for contracting, compliance, cost/price and operations advisory and assistance services. The work will be performed in the National Capital Region; Dahlgren, Virginia; Huntsville, Alabama; and other locations as directed with an estimated completion date of July 2025. This contract was competitively procured via publication on the beta.SAM.gov website with five proposals received. Fiscal 2020 research, development, test and evaluation funds in the amount of $1,099,719 are being obligated at time of award. The Missile Defense Agency, Huntsville, Alabama, is the contracting activity (HQ0858-20-C-0008). DEFENSE LOGISTICS AGENCY Marketing Assessment Inc., Sterling, Virginia (SPE2DE-20-D-0015, $48,000,000); and Manus Medical LLC, Richmond, Virginia (SPE2DE-20-D-0014, $30,000,000), have each been awarded a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract under solicitation SPE2DE-18-R-0001 for medical and surgical supplies. These were competitive acquisitions with 41 responses received. They are five-year contracts with no option periods. Location of performance is Virginia, with an ordering period end date of June 24, 2025, for Marketing Assessment Inc. and July 1, 2025, for Manus Medical LLC. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. The Raytheon Co., McKinney, Texas, has been awarded a $14,737,383 firm-fixed-price delivery order (SPRPA1-20-F-QD02) against a six-year long-term contract (SPRBL1-15-D-0017) for aircraft radar system spare parts. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. Location of performance is Texas, with a Nov. 14, 2022, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2020 through 2022 (Navy) working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2232845/source/GovDelivery/

  • Biden hosts forum on artificial intelligence with tech leaders

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  • Naval Engineers Must 'Lean In' to Advance Technological Agility

    21 juin 2019 | International, Naval

    Naval Engineers Must 'Lean In' to Advance Technological Agility

    BY C. TODD LOPEZ Rebuilding "strategic momentum" and growing advantages in the maritime domain are challenges Chief of Naval Operations Adm. John M. Richardson addressed in "A Design for Maintaining Maritime Superiority, Version 2.0," which updated a 2016 document. At an annual meeting of the American Society of Naval Engineers today in Washington, Richardson said meeting those challenges is a "human problem" that must be met, in part by naval engineers. His plan for how the Navy will maintain maritime superiority relies in part on three aspects of agility. "With the joint force, we will restore agility — conceptual, geographic, and technological — to impose cost[s] on our adversaries across the competition-conflict spectrum," the report reads. For engineers, Richardson focused on their contribution to technological agility. "The technological landscape is changing so fast across all of technology," Richardson said. "It's really fueled by this information revolution that we are in the middle of right now. And so as we think about the Navy as a learning engine in and of itself, restoring these technical agilities is really important. We do need to move at pace." For comparison, the admiral referred back to Dec. 8, 1941 — a day after the bombing at Pearl Harbor. It was then, Richardson said, that the Navy began a quick transition from battleship-based tactics to aircraft carriers and aerial battles. He said the switch in strategy wasn't a surprise for the Navy, because it had been researching and engineering for that possibility for years. "We had been 20 years into naval aviation," he said. "This was not just something that we did as a pickup team on Dec. 8. We had been putting investments in with folks like [Joseph] Reeves and [William] Moffett and all those pioneers of naval aviation. We had evidence. A lot of experimentation, a lot of engineering that had gone into that." Now, Richardson said, the Navy must again have that kind of experimentation, engineering and prototyping to ready it for the next conflict — and it must get on that mission quickly to stay ahead of adversaries. "We do not want to be the second navy on the water with these decisive technologies: the directed energy, unmanned, machine learning, artificial intelligence, etc., you name it," he said. "That's the great challenge now: to get out, start prototyping, get at this pace, plus evidence ... to yield a relevant Navy that is ready to defend America from attack and protect our interests around the world." The admiral said that a knee-jerk reaction might be to cite Defense Department acquisition regulations, like DOD 5000, for inhibiting the type of rapid development, engineering and research he thinks will be needed to maintain maritime dominance. But he said that's not entirely correct. "I think a new set of rules would help," he said. "But this is, I think, a human problem at the end of the day. If we are all biased for action, if we all lean into this, we will get it done. There is nothing that will prohibit us or inhibit us from getting that done if we are all leaning in." https://www.defense.gov/explore/story/Article/1882567/naval-engineers-must-lean-in-to-advance-technological-agility/

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