23 juillet 2020 | International, Aérospatial

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

By

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

Sur le même sujet

  • Contract Awards by US Department of Defense - December 13, 2019

    16 décembre 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contract Awards by US Department of Defense - December 13, 2019

    ARMY BAE Systems Land & Armaments LP, York, Pennsylvania, was awarded a $249,152,760 modification (P00042) to contract W56HZV-17-C-0001 for the Self-Propelled Howitzer and carrier, ammunition, tracked vehicles and their associated support under the production contract to build and deliver M109A7s and M992A3s. Work will be performed in York, Pennsylvania, with an estimated completion date of Jan. 31, 2023. Fiscal 2018 and 2019 other procurement, Army funds in the amount of $249,152,760 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. Palantir USG Inc., Palo Alto, California, was awarded an $110,814,893 other transaction agreement contract for numerous databases across the Army enterprise integrated on one platform. One bid was solicited via the internet with one bid received. Work will be performed in Washington, District of Columbia, with an estimated completion date of Dec. 15, 2023. Fiscal 2020 operations and maintenance, Army funds in the amount of $32,545,300 were obligated at the time of the award. U.S. Army Contracting Command, New Jersey, is the contracting activity (W15QKN-20-9-P001). Conco Inc.,* Louisville, Kentucky (W15QKN-20-D-0003); and Delfasco LLC,* Afton, Tennessee (W15QKN-20-D-0004), will compete for each order of the $46,200,000 firm-fixed-price contract for manufacture, inspect, test, and deliver metal containers and covers for the M231 and M232 series for the Modular Artillery Charge Systems. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 12, 2024. U.S. Army Contracting Command, New Jersey, is the contracting activity. Alabama Department of Rehabilitation, Montgomery, Alabama, was awarded a $32,150,000 firm-fixed-price contract for full food service operations of an Army dining facility, receiving, storing, preparing, requisitioning, and serving food. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of June 13, 2025. U.S. Army Mission Installation Contracting Command, Fort Sam Houston, Texas, is the contracting activity (W9124J-20-D-0005). Lockheed Martin Corp., Orlando, Florida, was awarded a $15,547,894 modification (P00084) to contract W31P4Q-15-C-0102 for the Joint Air-to-Ground Missile production line for a rate ramp increase of 50 to 100 missiles per month. Work will be performed in Orlando, Florida, with an estimated completion date of March 30, 2022. Fiscal 2018 and 2019 procurement of ammunition, Army funds in the amount of $15,547,894 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. AM General LLC, South Bend, Indiana, was awarded a $15,118,831 firm-fixed-price Foreign Military Sales (Jordan) contract for hardware support to reset and upgrade a fleet of 200 M998 High Mobility Multi-Wheeled Vehicles. One bid was solicited via the internet with one bid received. Work will be performed in Amman, Jordan, with an estimated completion date of Dec. 13, 2020. Fiscal 2020 Foreign Military Sales funds in the amount of $15,118,831 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-20-C-0037). Primus, Beltsville, Maryland, was awarded an $8,782,763 firm-fixed-price contract for cold and hot aviation refuel and defuel services, personnel, management, parts, supplies, transportation and vehicles/trucks. One bid was solicited via the internet with one bid received. Work will be performed in Daleville, Alabama, with an estimated completion date of June 16, 2020. Fiscal 2020 operations and maintenance, Army funds in the amount of $5,000,000 were obligated at the time of the award. U.S. Army Mission Installation Contracting Command, Fort Eustis, Virginia, is the contracting activity (W9124G-20-C-0004). NAVY Noresco LLC, Westborough, Massachusetts, is awarded firm-fixed-price task order (N3943020F9905) at $169,331,394, under a multiple award, indefinite-delivery/indefinite-quantity contract for energy conservation measures at Naval Submarine Base New London, Groton, Connecticut. The work to be performed provides for the construction, operations, and maintenance of energy conservations to improve energy efficiency and reliability, which include energy management control system upgrades, combined heat power and micro-grid expansion, lighting upgrades, and steam distribution improvements. Work will be performed at Naval Submarine Base New London, Groton, Connecticut, and is expected to be completed in 21 years by December 2040. No funds will be obligated with this award, as private financing obtained by the contractor will be used for the 36-month construction (i.e. implementation) phase of the project. Five proposals were received for this task order. The Naval Facilities Engineering Command Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity for the task order. Department of Energy, Office of Energy Efficiency & Renewable Energy, Golden, Colorado, is the contracting activity for the basic contract (DE-AM36-09GO29039). Raytheon Co., Integrated Defense Systems, Marlborough, Massachusetts, is awarded a $123,532,573 firm-fixed-price and cost-plus-fixed-fee modification to previously awarded contract (N00024-19-C-5112) to exercise options for fiscal 2020 production of AEGIS Weapon System Fire Control System (FCS) MK 99 equipment, AEGIS modernization production requirements, and associated engineering services. These services are in support of DDG 51 Class Flight III destroyers and the Spanish navy's F-110 program. This modification also covers the production of the AEGIS BMD Kill Assessment Ordnance Alteration (ORDALT) Kits and Solid State Switch Assembly (SSSA) Special Test Equipment (STE). The AMOD program fields combat system upgrades that will enhance the Anti-Air Warfare (AAW) and Ballistic Missile Defense (BMD) capabilities of AEGIS equipped DDG 51 Arleigh Burke-class destroyers. Work will be performed in Andover, Massachusetts (81%); Marlborough, Massachusetts (10%); Chesapeake, Virginia (3 %); Portsmouth, Rhode Island (3%); San Diego, California (2%); and Burlington, Massachusetts (1%), and is expected to be completed by April 2023. Foreign Military Sales; fiscal 2020 shipbuilding and conversion (Navy); fiscal 2020 other procurement (Navy); and fiscal 2020 defense wide procurement funding in the amount of $123,532,573 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, District of Columbia, is the contracting activity. Anchor Innovation, Inc.,* Virginia Beach, Virginia (N00167-20-D-0001); Auxiliary Systems Inc.,* Norfolk, Virginia (N00167-20-D-0002); Colonna's Shipyard Inc.,* Norfolk, Virginia (N00167-20-D-0003); Fairlead Boatworks Inc.,* Newport News, Virginia (N00167-20-D-0004); Gryphon Technologies LC, Washington, District of Columbia (N00167-20-D-0005); Q.E.D. Systems Inc.,* Virginia Beach, Virginia (N00167-20-D-0006); and United States Marine Inc.,* Gulfport, Mississippi (N00167-20-D-0007), are awarded a combined maximum $43,109,222 indefinite-delivery/indefinite-quantity multiple-award contract for watercraft industrial services and supplies in support covering all phases of watercraft total life cycle to include construction, proof of design, model development and realization, fabrication, modernization, repair, overhaul quality assurance, and testing of the Naval Surface Warfare Center Carderock Division Detachment Norfolk, Combatant Craft Division. The contractor shall perform in a wide variety of locations both within the continental U.S. and outside the continental U.S. (OCONUS). The expected work distribution by performance location includes Mid Atlantic U.S. (60%); Southwest U.S. (15%); U.S. Gulf Coast (2%); Northwest U.S. (2%); Northeast U.S. (1%); other/OCONUS (20%). OCONUS locations typically include, but are not limited to Bahrain, Kuwait, United Arab Emirates, Spain, Italy, Horn of Africa, Guam, Japan, Hawaii and Alaska. Work is expected to be complete by December 2022. Fiscal 2020 service cost center (Navy) funding in the total amount of $12,000 will be obligated at time of award to meet the minimum guarantee under each contract and will expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with seven offers received. The Naval Surface Warfare Center Carderock Division, Detachment Norfolk, Virginia, is the contracting activity. John C. Grimberg Co. Inc., Rockville, Maryland, is awarded a $27,830,000 firm-fixed-price contract for the construction repair of a solid state electronic devices laboratory at Naval Research Laboratory. The work to be performed will repair Building 74, including conversion of existing high bay storage into laboratory spaces, and will repair Building 81. Repair work in Building 74 includes replacement and repair of structural and architectural systems including steel framing, second floor assembly, roof, windows, doors, exterior finishes, exterior egress stairs, elevator, partitions, interior finished, laboratory facilities and abatement of hazardous materials. The renovation also includes replacement of mechanical and electrical systems including controls, chilled water system, air handling system, fire protection, clean room and laboratory systems (water, gas, ventilation, pressurization, and filtration), lighting, power and electrical distribution. Repairs in Building 81 will replace deteriorated components while additional construction will alter the building height to accommodate specialized equipment. Work will be performed in Washington, District of Columbia, and is expected to be completed by January 2022. Fiscal 2020 operations and maintenance, (Navy) contract funds in the amount of $27,830,000 are obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website with two proposals received. The Naval Facilities Engineering Command, Washington, Washington, District of Columbia, is the contracting activity (N40080-20-C-0004). Arete Associates Inc.,* Northridge, California, is awarded a $17,561,860 firm-fixed-price modification to a previously-awarded contract (N61331-18-D-0012) to exercise Option 2, to provide Coastal Battlefield Reconnaissance and Analysis (COBRA) Block I systems. Work will be performed in Tucson, Arizona (35%); Destin, Florida (35%); and Santa Rosa, California (30%), and is expected to be completed by July 2022. No funding will be obligated at time of award. The Naval Surface Warfare Center, Panama City Division, Panama City, Florida, is the contracting activity. Noresco LLC, Westborough, Massachusetts, is awarded a $16,988,494 firm-fixed-price task order (N3943020F9903) under a multiple award, indefinite-delivery/indefinite-quantity, energy savings performance contract at Naval Support Activity Hampton Roads, Norfolk, Virginia. The work to be performed provides for the design, construction, and installation of energy conservation measures for boiler plant improvements, water and sewer conservation systems and water resiliency. The work also provides for performance period services consisting of measurement and verification, operations and maintenance, and repair and replacement services. Work will be performed at Naval Support Activity Hampton Roads, Norfolk, Virginia, and is expected to be completed in 22 years by December 2041. No funds will be obligated with this award, as private financing obtained by the contractor will be used for the 24-month construction (i.e. implementation) phase of the project. Nine proposals were received for this task order. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity for the task order. Department of Energy, Office of Energy Efficiency and Renewable Energy, Golden, Colorado, is the contracting activity for the basic contract (DE-AM36-90GO29039). AIR FORCE Pinnacle Solutions Inc., Huntsville, Alabama, has been awarded a $21,395,866 modification (P00049) to previously awarded FA8621-16-C-6281 for support of the KC-10 training system. This contract modification provides for the exercise of Option Year Four. Work will be performed at Travis Air Force Base, California; Joint Base McGuire-Dix-Lakehurst, New Jersey; and the Training System Support Center in Fairfield, California, and is expected to be complete by Dec. 31, 2020. The total cumulative face value of the contract is $105,964,368. Fiscal 2020 operations and maintenance funds in the amount of $14,965,279 are being obligated at the time of award. The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. Edaptive Computing Inc., Dayton, Ohio, has been awarded a $14,865,271 cost-plus-fixed-fee contract for research and development of the Joint Federated Assurance Center Trust Lab Enterprise effort. This effort seeks to enhance, deploy, transition, and support decision-aiding tools for the Air Force Research Laboratory Joint Federated Assurance Center trust laboratory research and development of analysis, design and verification tools to promote trusted systems engineering for integrated circuits electronics. Work will be performed at Dayton, Ohio, and the work is expected to be completed by March 13, 2024. This award is the result of a non-competitive acquisition. Fiscal 2020 research and development funds in the amount of $12,500,000 are being obligated at time of award. The Air Force Research Lab, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-20-F-1956). DEFENSE LOGISTICS AGENCY Ultrax Aerospace Inc., Lees Summit, Montana, has been awarded a maximum $13,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for spares/repairs in support of the UH-60 Black Hawk Helicopter Automated Flight Control line replaceable units. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a five-year base contract with no option periods. Location of performance is Montana, with a Dec. 12, 2024, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2025 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Aberdeen Proving Ground, Maryland (SPRBL1-20-D-0004). DEFENSE FINANCE AND ACCOUNTING SERVICE Kearney and Company PC, Alexandria, Virginia, is being awarded a labor-hour contract option with a maximum value of $10,721,966 for audit services of the Defense Health Program (DHP). Work will be performed in various locations including the DHP headquarters in Falls Church, Virginia, as well as other federal locations in Texas, Ohio, Indianapolis, Maryland, Colorado, New York, and Maine, with an expected completion date of Dec. 31, 2020. This contract is the result of a competitive acquisition in which two bids were received. This award brings the total cumulative value of the contract to $36,598,260. Fiscal 2020 operations and maintenance, defense wide funds in the amount of $10,721,966 are being obligated at the time of this option award. The Defense Finance and Accounting Service, Contract Services Directorate, Columbus, Ohio, is the contracting activity (HQ0423-17-F-0096). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2040280/source/GovDelivery/

  • FLIR Systems Awarded $89 Million Contract from French Armed Forces to Deliver Black Hornet Personal Reconnaissance System

    18 janvier 2019 | International, Aérospatial

    FLIR Systems Awarded $89 Million Contract from French Armed Forces to Deliver Black Hornet Personal Reconnaissance System

    WILSONVILLE, Ore. — FLIR Systems, Inc. (NASDAQ: FLIR) announced today it has been awarded a contract from the French Defense Procurement Agency (DGA) in support of the French Operational Pocket Drone (DrOP) program. The contract has a ceiling value of $89 million to provide the FLIR Black Hornet® 3 nano-unmanned aerial vehicle (UAV) and Personal Reconnaissance System (PRS) to support French Armed Forces operations. #FLIR Awarded $89M contract from @defense_gouv to deliver Black Hornet Personal Reconnaissance System #Military #France #ArmedForces The Black Hornet PRS is the world's smallest combat-proven nano-Unmanned Aerial System (UAS) and is currently deployed in more than 30 countries. The Black Hornet enables the warfighter to maintain situational awareness, threat detection, and surveillance no matter where the mission takes them. Equipped with electro-optical/infrared sensors and the ability to fly up to 25 minutes, the Black Hornet bridges the gap between aerial and ground-based sensors, provides the same situational awareness and threat detection capabilities as larger unmanned air and ground vehicles. “We are honored to support the French Armed Forces' mission with the delivery of the Black Hornet PRS and related services,” said Jim Cannon, President and CEO at FLIR Systems. “This award strengthens our partnership with the French Armed Forces and our focus on unmanned technology, an emerging area that is strategically critical to FLIR's business.” This program provides the expanded capability of the Black Hornet 3 for the French Armed Forces. The contract will be managed and executed by FLIR in Hvalstad, Norway. For more information about Black Hornet VRS, visit www.flir.com/blackhornet. About FLIR Systems, Inc. Founded in 1978, FLIR Systems is a world-leading industrial technology company focused on intelligent sensing solutions for defense, industrial and commercial applications. FLIR Systems' vision is to be “The World's Sixth Sense,” creating technologies to help professionals make more informed decisions that save lives and livelihoods. For more information, please visit www.flir.com and follow @flir. https://business.financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/flir-systems-awarded-89-million-contract-from-french-armed-forces-to-deliver-black-hornet-personal-reconnaissance-system

  • US Army’s new fire protection system launches interceptor in test

    19 décembre 2023 | International, Terrestre, C4ISR

    US Army’s new fire protection system launches interceptor in test

    With the completion of a successful launcher demonstration, the Indirect Fire Protection Capability system can move into Army-led developmental testing.

Toutes les nouvelles