2 avril 2020 | International, Naval

Navy Rushes Shipbuilding Deals To Keep Yards Going In Pandemic

“We're gonna have to brave the storm together, especially some of the smaller suppliers,” said Lucas Hicks, vice president of new construction aircraft carrier programs.

By

WASHINGTON: The Navy is rushing to award several major shipbuilding contracts several months early to keep shipbuilders on the job and save smaller suppliers in danger of going out of business amid the wider manufacturing halt cause by the coronavirus crisis.

The biggest is a contract to build the next San Antonio-class amphibious transport dock ship, (LPD 31) which serves as a jumping-off point for Marines heading ashore.

The push to accelerate work is part of a wide-ranging effort to buttress the shipbuilding industry and the thousands of small suppliers that make parts for the Navy. The Navy's top acquisition official, James Geurts, told reporters Wednesday morning the Navy is worried about the effect the state and local shutdowns could have on its shipbuilding and repair efforts. “It's a national emergency and this is critical national infrastructure,” so the issue is, “how do we orient quickly to get at this aggressively and try not to be reactive in nature.”

Ingalls Shipbuilding in Mississippi is currently building the USS Richard M. McCool (LPD 29) and Harrisburg (LPD 30), and would be in line to start work on the next ship in the class. The Navy is also pushing to move forward the award for a landing craft program that was slated to kick off later this year. Funding for the new LPD was approved in the 2020 NDAA defense policy bill which authorized $525 million for the LPD Flight II program.

Any breaks in the build and repair schedule would throw the Navy's planned deployments out of whack but also could be devastating to the thousands of small businesses across the country that literally provide the nuts and bolts that make the complex machinery that powers the fleet.

“Nobody right now is in the position to float gaps,” Geurts said. His staff has done a detailed analysis of the Navy's industrial base. They are looking for ways to help the smaller companies not only through moving forward orders, but also finding money for research and development that would help small, innovative companies.

“I hear stories of second-, third- and fourth-tier suppliers that were worried about going out of business, worried about how they would keep paying their salaries, and our ability to move and accelerate work into the defense base and then have that be pushed out to the suppliers is absolutely critical, because if they're not there it won't matter when we're ready to recover,” Geurts said.

Geurts is gathering all of the large shipbuilders and shipyard owners several times a week to check on the status of the workforce and what problems they see coming if the current crisis continues.

At the center of these worries is the nation's largest shipbuilder, Huntington Ingalls, which is the only company that builds both Nimitz and Ford-class aircraft carriers, in addition to sharing work on Virginia-class submarines with Electric Boat.

The company has taken steps to attempt to apply social distancing at its shipyards, and has staggered shifts to accommodate workers who might now need to work different hours, company officials say.

In an interview earlier this week, several Huntington executives told me they've reached out to over 2,000 suppliers in 48 of the 50 US states, and are working to speed up and push contracts as far down the supply chain as possible to keep these small businesses running.

“We're gonna have to brave the storm together and especially some of the smaller suppliers,” said Lucas Hicks, vice president of new construction aircraft carrier programs.

“We need their products today, but we also need them in 90 days, so we want to help them brave the storm,” he added. “We've actually changed some payment terms on some of our supplier contracts to try to make sure that we can front them what they need to stay afloat. We're doing some creative stuff to try and help them be able to weather the storm.”

The company hasn't seen any reduction in parts received yet, but acknowledges that the situation changes on a daily basis, as different parts of the country feel the pain of local shutdowns in different ways.

Lucas said Huntington does not anticipate it will stop work, but is allowing employees the option of working from home and providing liberal leave to others.

Eventually all of this “will have an impact,” especially if the shutdowns are prolonged. “At some point, if it extends for months and months at the rate we're on, it would have an impact but it's too early to tell.”

Geurts appears to see things the same way. The crisis and its downstream effects is “going to have both a time dimension and geography dimension, and so it will remain a fluid situation,” when it comes to how much the defense industry, and the navy, are affected, Geurts said.

https://breakingdefense.com/2020/04/navy-rushes-shipbuilding-deals-to-keep-yards-going-in-panddemic

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  • Contract Awards by US Department of Defense - May 21, 2020

    22 mai 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contract Awards by US Department of Defense - May 21, 2020

    U.S. TRANSPORTATION COMMAND Marine Terminals Corp., San Pedro, California, has been awarded a $95,835,034 firm-fixed-price contract (HTC711-20-D-R046) providing stevedoring and related terminal services at ports in Northern California. Work will be performed at the Military Ocean Terminal, Concord, California; and the Port of Oakland, California. The contract period of performance is from Aug. 7, 2020, to Aug. 6, 2025. Fiscal 2020 transportation working capital funds were obligated at award. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, in the contracting activity. NAVY AECOM-BAKER-CARDNO NAVFAC Atlantic Planning JV, Arlington, Virginia, is awarded a $95,000,000 maximum amount, firm-fixed-price, indefinite-delivery/indefinite-quantity, architect-engineering contract for architect-engineer services for preparation of Navy and Marine Corps planning and engineering services for work located primarily in the continental U.S. east coast, but also worldwide. The work to be performed provides for: (a) Plans: global shore infrastructure plans; installation development plans; regional integration plans; functional plans; maintenance and sustainment plans; integrated product support plans; encroachment action plans; family housing and bachelor quarters comprehensive neighborhood plans; activity overview plans; and installation appearance plans; (b) Project Planning Documents: the preparation of military construction project planning documentation; preparation of construction cost estimates, preliminary and parametric cost estimates and siting-land use studies/analyses; special site approvals; economic analyses; asset evaluations; basic facility requirements documentation; facilities planning documents; preliminary hazard analyses; preliminary hazard lists, and sustainable design studies; (c) Studies: concept studies; special planning studies, business case analysis studies and traffic/parking/movement studies; facilities planning studies, feasibility studies, safety studies and air installation compatible use zones; range air installation compatible use zones studies; site studies; facilities life cycle studies; activity planning and management models and electronic land use/planning tools/studies. Work is expected to be complete by May 2025. No task orders are being issued at this time. The term of the contract is not to exceed 60 months. Fiscal 2020 operations and maintenance (Navy) (O&M,N) contract funds in the amount of $10,000 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 two proposals were received. The Naval Facilities Engineering Command Atlantic, Norfolk, Virginia, is the contracting activity (N62470-20-D-0006). Lockheed Martin Corp. Rotary and Mission Systems, Baltimore, Maryland, is awarded a $48,965,154 firm-fixed-price modification to previously awarded contract N63394-20-C0004 to exercise options for launch sequencer MK 5 Mod 2 production units in support of the Vertical Launch System. Work will be performed in Oldsmar, Florida. The Vertical Launch System provides area and self-defense, anti-air warfare capabilities, counter-air and land attack cruise missile defense and surface and subsurface warfare capabilities. Work is expected to be complete by April 2022. Fiscal 2019 shipbuilding and conversion (Navy) funds in the amount of $48,965,154 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Surface Warfare Center, Port Hueneme Division, Port Hueneme, California, is the contracting activity. The Boeing Co., Seattle, Washington, is awarded a $27,770,370 modification (P00174) to previously awarded cost-plus-fixed-fee contract N00019-14-C-0067. This modification procures integrated logistics support for the Boeing P-8A Poseidon warfare aircraft for the Navy, the government of Australia, and the government of the United Kingdom. Work will be performed in Seattle, Washington (68%); Jacksonville, North Carolina (16%); Whidbey Island, Washington (4%); Sigonella, Italy (3%); Kadena, Japan (2%); Bahrain, Bahrain (2%); Misawa, Japan (2%); Kaneohe Bay, Hawaii (2%); and various locations within and outside the continental U.S. (1%). Work is expected to be complete by March 2023. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $8,391,473; Royal Australian Air Force cooperative program funds in the amount of $256,187; and Foreign Military Sales funds in the amount of $133,083 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. DRS Laurel Technologies, Johnstown, Pennsylvania, is awarded a $26,047,878 firm-fixed-price modification to previously-awarded contract N63394-20-C-0002 to exercise options for launch control unit Mk 235 Mod 11 and Mod 12 production units in support of the Vertical Launch System (VLS). Work will be performed in Johnstown, Pennsylvania. This option exercise is for the manufacture, assembly, test and delivery of additional production units of the VLS launch sequencer launch control unit Mk 235 Mod 11 and 12, part numbers 7104280-119 and 7104280-129, respectively. The VLS provides area and self-defense, anti-air warfare, surface and subsurface capabilities, counter-air and land attack cruise missile defense, and is equipped with two redundant launch control units, each of which is electrically interfaced with all of the launch sequencers in the system. Work is expected to be complete by February 2021. Fiscal 2020 shipbuilding and conversion (Navy) funding in the amount of $26,047,878 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Surface Warfare Center, Port Hueneme Division, Port Hueneme, California, is the contracting activity. Management Services Group Inc.,* doing business as Global Technical Systems, Virginia Beach, Virginia, is awarded a $24,385,746 firm-fixed-price modification to previously-awarded contract N00024-20-C-5608 for procurement of network, processing and storage (NPS) technical insertion (TI) 16, modification (MOD) 1 production equipment, which provides computer processing and memory, data storage and extraction, network systems and input/output interfaces to host software applications of Navy combat systems. This contract combines purchases for the Navy (62%) and the government of the Commonwealth of Australia (38%) under the Foreign Military Sales (FMS) program. Work will be performed in Virginia Beach, Virginia. The NPS program consists of enterprise products in use across surface Navy combat systems which introduce powerful, commercially available, off-the-shelf processors as part of a general strategy to achieve a modular and open architecture design. NPS is comprised of two different common processing system enclosure assemblies and three variants: advanced storage area network, core computing system, and air-cooled processing and storage subsystem. Aegis weapon system Aegis modernization upgrade equipment systems are also included in this procurement and align requirements to include the Aegis local area network interconnect system, Aegis conversion equipment group Input/Output 1 and 2, and digital video display system. Work is expected to be complete by December 2021. Fiscal 2020 shipbuilding and conversion (Navy) funds; FMS Australia funds; 2015 shipbuilding and conversion (Navy) funds; 2016 shipbuilding and conversion (Navy) funds; and 2020 other procurement (Navy) funds in the amount of $24,385,746 will be obligated at time of award, and funds in the amount of $39,356 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Innovative Defense Technologies LLC,* Arlington, Virginia, is awarded a $22,506,572 modification (P00007) to previously awarded cost-plus-fixed-fee contract N00014-19-C-1054 for the Cloud to Edge Environment. This modification adds Options 5 through 10, and exercises Options 5, 9 and 10, which increases the contract value by $22,506,572. Under this modification, the contractor will continue work to deliver a secure development and operations (SecDevOps) environment enabling cloud-based collaborative development, simulation, testing and certification of evolving Navy software systems. Work will be performed in Arlington, Virginia (68%); Mount Laurel, New Jersey (23%); Washington, D.C. (6%); Rhode Island (2%); and various places below 1%. Work is expected to be complete by February 2022. Fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $77,844 are obligated at the time of award and will expire at the end of the current fiscal year. Fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $20,453,641 are obligated at the time of award and will not expire at the end of the current fiscal year. The Office of Naval Research, Arlington, Virginia, is the contracting activity. Alere San Diego Inc., doing business as Immunalysis Corp., San Diego, California, is awarded a $7,066,152 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for U.S. Food and Drug Administration and quality management documented fentanyl/norfentanyl immunoassay reagent kits for use with the currently installed Beckman Coulter AU5800 series systems for the Department of Defense Drug Demand Reduction Program. This is a two-year single award contract, and deliveries are expected to be complete by May 2022. Fiscal 2020 defense-wide, one-year operations and maintenance funds will be obligated on decentralized individual delivery orders during the base period. No funds will be obligated at the time of award and the minimum guarantee under the contract is 100 kits. The contract was competitively procured via the Federal Business Opportunities website, and three offers were received. 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This modification provides continued technical support services for the Special Programs Directorate, Los Angeles Air Force Base, California. Work will be performed at Los Angeles AFB, California, and is expected to be completed May 31, 2021. Fiscal 2020 operations and maintenance funds in the amount of $856,651; and fiscal 2020 research, development, test and evaluation funds in the amount of $3,000,000 are obligated at the time of award. The U.S. Space Force, Space and Missile Systems Center, Special Programs Directorate, Los Angeles AFB, California, is the contracting activity. Central Coast Water Authority, Buellton, California, has been awarded a $7,600,000 indefinite-delivery/indefinite-quantity delivery order to provide Vandenberg Air Force Base, California, and outlying municipalities with potable water. Work will be provided at Vandenberg AFB, California, and is expected to be completed June 14, 2032. The cumulative value of this contract is $165,443,388. Fiscal 2020 operations and maintenance funds in the amount of $7,593,715 are being obligated at the time of award. The 30th Contracting Squadron, Vandenberg AFB, California, is the contracting activity (F04684-92-D-0013). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2194990/source/GovDelivery/

  • Denmark ups defense budget

    31 janvier 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité, Autre défense

    Denmark ups defense budget

    By: Aaron Mehta WASHINGTON — In a move outside of its normal budgeting cycle directly aimed at the question of burden-sharing with allies, Denmark has agreed to increase its long-term defense spending. A coalition of parties in the Danish parliament have agreed to tack on 1.5 billion kroner (U.S. $229.7 million) to the agreed-upon defense budget for 2023, which would put defense spending at 1.5 percent of gross domestic product for that year. “It is on a good and well thought through basis that the parties to the defense agreement have now decided to further strengthen Danish defense, so that we will spend 1.5% of GDP in 2023,” Danish Defence Minister Claus Hjort Frederiksen said in a statement. “Danish status and reputation in NATO is of common concern and I would like to thank all parties for shouldering the responsibility.” The amendment comes less than one year after a coalition of parties agreed to a five-year defense spending agreement that planned for a 20 percent growth in military spending, from $3.8 billion in 2018 to $4.6 billion in 2023. It also comes just months before elections are set for Denmark, essentially removing the question of increased defense spending from the campaign. Just where that money will go is undecided at the moment. Denmark was already focused on standing up a light infantry battalion for national and international use; increasing anti-aircraft capabilities; buying the F-35 Joint Strike Fighter; and the creation of a special cyberwarfare unit. It is possible those capabilities could receive a funding boost. One thing is clear: The move is directly the result of a desire to support NATO amid calls from the Trump administration over fairer burden-sharing. In a statement, the political coalition notes “the Alliance has in the recent year taken important steps to further strengthen NATO's readiness and deterrence posture. The situation increases requirements to the Alliance and has reinforced the debate on fair burden sharing and Allies ability and will to defend themselves and each other. In light of this development Allies have taken new decisions to allocate additional resources to the armed forces towards 2024.” In addition to the spending increase, Denmark is changing how it reports its spending to NATO in order to “make sure the Danish defence efforts are duly reflected in the reporting to NATO.” Those changes will up Denmark's reported NATO support to 3 billion kroner annually from 2023 onward. Whether the increase will be enough to placate U.S. President Donald Trump remains to be seen. Trump has consistently called for European allies to spend more on defense, with a focus on hitting the target of spending 2 percent of GDP on defense, set at the 2014 Wales Summit. https://www.defensenews.com/global/europe/2019/01/30/denmark-ups-defense-budget/

  • Proposed rule banning Chinese tech needs to consider small contractors, senators warn

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

    Proposed rule banning Chinese tech needs to consider small contractors, senators warn

    Andrew Eversden Two U.S. senators called on the Office of Management and Budget to ensure that federal regulation banning the government's use of Chinese telecommunications technology include “explicit processes” to help small businesses with compliance. In a May 4 letter sent to acting OMB Director Russ Vought, Sens. Marco Rubio, R-Fla., and Ben Cardin, D-Md., asked Vought to carefully consider to the needs of small businesses while the agency reviews a proposed rule. The senators' concern is in response to a proposed rule under review by OMB implementing Section 889(a)(1)(B) of the fiscal 2019 defense policy law — a provision that bans federal agencies from procuring or doing business with companies using “covered telecommunications equipment or services" in an effort to block Chinese tech companies like Huawei and ZTE from entering the U.S. government's supply chain. Rubio and Cardin are the top two senators on the Senate Committee on Small Business and Entrepreneurship. According to the letter, OMB is currently reviewing the draft proposed rule, statutorily required to be implemented Aug. 13. Because smaller companies don't have access to the same resources as larger suppliers, they may need “more assistance and time,” the senators wrote. The pair called the guidance for small businesses “vita,l” given that small businesses make up about one-quarter of federal procurement, worth $120 billion. “By providing these small firms with a clear path toward compliance and a reasonable time frame, we believe that the goal of securing the United States supply chain will be better achieved,” Rubio and Cardin wrote. Outside interest groups representing federal contractors have also pushed Congress to delay the implementation of Part B of Section 889. In a joint letter in late March, the National Defense Industrial Association and the Professional Services Council asked Congress to delay the Aug. 13 date to February 2021. They also cited the ongoing coronavirus pandemic as reason for a delay. “Part B will impose significant financial and operational costs on medium and small-sized firms at a moment of substantial uncertainty and hardship. While we agree that Part B addresses a significant problem in defense supply chains, and that additional measures are needed to protect [Department of Defense] information assets from covered equipment, COVID-19 has made the current implementation timeline infeasible,” the groups wrote. The United States government alleges that Huawei's 5G technology allows for Chinese government espionage and poses a threat to national security. Senior U.S. officials have traveled the globe, urging allies not to include Huawei's technology in their 5G networks. But the effort has been largely unsuccessful, particularly after the United Kingdom announced in January it would allow Huawei to build noncritical pieces of its 5G network. That decision was met with scorn by lawmakers on Capitol Hill. Still, Rubio and Cardin warned that OMB needs to produce the regulation cautiously and carefully. “We are concerned that if the regulatory implementation language fails to adequately consider small businesses, this process could not only result in an ineffective implementation of the prohibition, but also be both harmful and costly to thousands of small federal contractors,” they wrote. https://www.fifthdomain.com/congress/capitol-hill/2020/05/05/proposed-rule-banning-chinese-tech-needs-to-consider-small-contractors-senators-warn/

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