27 mai 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
John Dowdy May 22, 2020
The rapid onset of the novel coronavirus has wreaked havoc on markets around the world, hitting commercial aviation especially hard as load factors plummet, flights are canceled and suppliers cut production rates and furlough workers. Amid all this disruption, defense manufacturers appear to have been relatively unscathed. But defense has always been a long-cycle business, driven more by annual budgets than daily load factors. And as the bill for rebuilding the global economy mounts, defense budgets are sure to come under pressure.
COVID-19 is first and foremost a human tragedy, and its continued spread is still a major concern. But we must solve for both the virus and the economy; the dual imperative of our time is the desire to preserve lives and livelihoods. Both will require substantial resources for public health and for economic rejuvenation. Countries around the world are making massive investments to rebuild battered economies, putting out more than $11 trillion in the last 2.5 months, with more sure to follow.
In the U.S., Congress passed the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act at the end of March, bringing the total stimulus thus far to $3 trillion, which could push the fiscal 2020 budget deficit to a record $3.8 trillion, an eye-watering 18.7% of the country's GDP. Other countries have passed similar aid packages, leading to soaring debt levels around the world. And more may well be necessary: The House has passed proposals for another $3 trillion in aid, although the bill's fate in the Senate is unclear.
Government debt levels are already high, swelling as the global financial crisis of 2008 caused a drop in tax revenues and a rise in social-safety-net payments. And the wave of deleveraging many expected as the recession eased never materialized: From 2008 to mid-2017, global government debt more than doubled, reaching $60 trillion. According to the International Monetary Fund (IMF), this year's increase in public-sector debt has reached 122.4% of gross domestic product (GDP) on average in developed countries.
Increased deficits worldwide are likely to put pressure on all discretionary spend, including defense. In the U.S., military spending accounts for 15% of all federal and roughly half of discretionary spending, so defense may come under real pressure. Rep. Ken Calvert of California, the ranking Republican on the House Appropriations defense subcommittee, says defense budgets were strained even before this year's unplanned burst of deficit spending. “There's no question that budgetary pressure will only increase now for all segments of our federal budget, including defense,” Calvert said. Defense Secretary Mark Esper has said he is preparing for future defense budget cuts and that legacy systems may need to be scrapped to pay for more modern forces.
South Korea shows early signs of this trend, with leaders recently announcing a shift in resources to disaster relief in response to the pandemic. Money came from education, agriculture, and environmental protection but mostly from defense. This example is particularly significant, given that South Korea is still technically at war, frozen in conflict with its immediate neighbor to the north. Furthermore, South Korea has been more effective than its peers in addressing the pandemic with a swift medical response and widespread testing that allowed the country to reopen its economy faster than other advanced countries. If South Korea is altering its budgetary priorities, others could follow.
The coronavirus has already had a massive human cost, resulting in approximately 300,000 deaths, including more than 90,000 Americans, more than were killed in Vietnam, the Gulf War, Iraq and Afghanistan combined. But the financial cost has been even greater. The cost in the US has already exceeded that of all the wars the U.S. has fought over the last 50 years. And if an additional $3 trillion is approved by Congress, the cost will surpass that of World War II.
At this point, it is too early to predict how much the defense budget will draw down how quickly. Indeed, the shift might not occur immediately. Broadly speaking, two factors have historically had the most influence on defense spending: threats and affordability. Governments will all calibrate the relative importance of the threats they face against their new economic realities. In keeping with past patterns, countries may give most weight to threats, real or perceived, over the near term. If there are anticipated or ongoing conflicts, their defense budgets will probably increase. Over the longer term, however, economic factors tend to prevail, and governments may set defense budgets in line with their diminished resources. Either way, we face some tough decisions ahead.
26 mai 2022 | International, Aérospatial
After finishing up at Black Flag, the Australian Wedgetail flew to Tyndall Air Force Base to take part in an air-to-air live fire evaluation event.
15 août 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
NAVY Advanced Technology International, Summerville, South Carolina, is awarded a $99,000,000 indefinite-delivery/indefinite-quantity contract for the Navy Manufacturing Technology (ManTech) Center for Innovative Naval Shipbuilding and Advanced Manufacturing. Work will be performed in Summerville, South Carolina, and is expected to be completed August 2024. Two task orders will be awarded upon award of the contract obligating fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $450,000. No funds will expire at end of current fiscal year. This contract was competitively procured under N00014-18-R-0006, with two proposals received in response to the solicitation. The Office of Naval Research, Arlington, Virginia, is the contracting activity (N00014-19-D-7001). Heffler Contracting Group,* El Cajon, California, is awarded a maximum amount $49,000,000 indefinite-delivery/indefinite-quantity contract for commercial and institutional building construction alterations, renovations, and repair projects at Marine Corps Base, Camp Pendleton. Projects will be primarily design-bid-build (fully designed) task orders or task order with minimal design effort (e.g., shop drawings). Projects may include, but are not limited to, alterations, repairs, and construction of administration buildings, maintenance/repair facilities, aircraft control towers, hangars, fire stations, office buildings, laboratories, dining facilities and related structures. Work will be performed in Oceanside, California. The term of the contract is not to exceed 60 months with an expected completion date of August 2024. Fiscal 2019 operations and maintenance (Navy) 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 operations and maintenance (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website, with six proposals received. Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity (N62473-19-D-2632). Sabre Systems Inc., Warrington, Pennsylvania, is awarded $42,999,468 for cost-plus-fixed-fee delivery order N68335-19-F-0533 against a previously issued basic ordering agreement (N68335-16-G-0022). This delivery order provides for the research and development of cyber resilient and full spectrum cyber warfare capabilities in support of the Integrated Battlespace Simulation and Test Department, Research, Development, Test and Evaluation Infrastructure Division. Work will be performed in Patuxent River, Maryland, and is expected to be completed in August 2024. Fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $50,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center, Aircraft Division, Lakehurst, New Jersey, is the contracting activity. Rockwell Collins Simulation and Training Solutions, Cedar Rapids, Iowa, is awarded $31,133,702 for modification P00013 to a previously awarded firm-fixed-price contract (N61340-17-C-0014). This modification provides for one E-2D Hawkeye Integrated Training System III Weapons Systems Trainer and one Aircrew Procedures Trainer, including technical data. Work will be performed in Norfolk, Virginia, and is expected to be completed in April 2024. Fiscal 2017 aircraft procurement (Navy) funds in the amount of $31,133,702 will be obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Warfare Center, Training Systems Division, Orlando, Florida, is the contracting activity. Diversified Maintenance Systems Inc.,* Sandy, Utah, is awarded a maximum amount $25,000,000 indefinite-delivery/indefinite-quantity contract for electrical systems construction alterations, renovations and repair projects at Naval Base Ventura County. Projects will be primarily design-bid-build (fully designed) task orders or task order with minimal design effort (e.g., shop drawings). Projects may include, but are not limited to, alterations, repairs and construction of electrical systems projects. Work will be performed in Port Hueneme, California (50%); and Point Mugu, California (50%). The term of the contract is not to exceed 60 months with an expected completion date of August 2024. Fiscal 2019 operations and maintenance (Navy) 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 operation and maintenance (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website, with two proposals received. Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity (N62473-19-D-2628). G-W Management Services LLC,* Rockville, Maryland, is awarded $12,742,282 for firm-fixed-price task order N40080-19-F-4870 under a previously awarded multiple award construction contract (N40080-19-D-0015) for construction of an Ammunition Supply Point Upgrade, located at the Marine Corps Base Quantico. The work to be performed provides for the construction of six new, standard design, high explosive concrete magazines, and the associated site work. The site work associated with this project includes an extension of an asphalt roadway to magazines and related site utility improvements to serve the new magazines. Additional site improvements include the demolition of three existing high explosive concrete magazines and incidental related work. Work will be performed in Quantico, Virginia, and is expected to be completed by March 2021. Fiscal 2019 military construction (Navy) contract funds in the amount of $12,742,282 are obligated on this award and will not expire at the end of the current fiscal year. Six proposals were received for this task order. Naval Facilities Engineering Command Washington, Washington, District of Columbia, is the contracting activity. ARMY KBRwyle Technical Solutions LLC, Columbia, Maryland, was awarded a $45,452,730 modification (0002 55) to contract W52P1J-12-G-0061 for maintenance, supply, transportation and other logistics functions for the Army Prepositioned Stock-3. Work will be performed in Goose Creek, South Carolina, with an estimated completion date of Aug. 14, 2020. Fiscal 2019 operations and maintenance, Army funds in the amount of $24,706,865 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. Inland Dredging Co. LLC, Dyersburg, Tennessee, was awarded a $24,000,000 firm-fixed-price contract for the rental of 20-24 inch Cutterhead Pipeline Dredge and Attendant Plant for dredging in Alabama, Mississippi and Florida. Bids were solicited via the internet with four received. Work locations and funding will be determined with each order, with an estimated completion date of Oct. 14, 2020. U.S. Army Corps of Engineers, Mobile, Alabama, is the contracting activity (W91278-19-D-0039). Raytheon Lockheed Martin Javelin JV, Tucson, Arizona, was awarded an $11,100,544 modification (P00017) to contract W31P4Q-19-C-0038 for engineering services for the Spiral 3 Test and Evaluation Plan, Spiral 3 System Hardware Qualification, and Worldwide Ammunition Reporting System requirements to support the Javelin Missile System. Work will be performed in Tucson, Arizona, with an estimated completion date of Sept. 1, 2021. Fiscal 2019 missile procurement, Army funds in the amount of $11,100,544 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. DEFENSE LOGISTICS AGENCY Leading Technology Composites Inc., doing business as LTC Inc., Wichita, Kansas, has been awarded a maximum $26,382,656 modification (P00005) exercising the first one-year option period to a one-year contract (SPE1C1-18-D-1073) with three one-year option periods for enhanced side ballistic inserts. This is a firm-fixed-price, indefinite-quantity contract. Location of performance is Kansas, with an Aug. 15, 2020, performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. General Dynamics Mission Systems Inc., Scottsdale, Arizona, has been awarded a maximum $12,973,184 firm-fixed-price contract for the Warfighter Information Network-Tactical Increment 2 system. This was a sole-source acquisition using justification 41 U.S. Code 1903, as stated in Federal Acquisition Regulation 6.302-1. This is a one-time procurement contract with no option periods. Location of performance is Arizona, with a Feb. 9, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 Army working capital funds. The contracting activity is the Defense Logistics Agency, Land and Maritime, Aberdeen Proving Grounds, Maryland (SPRBL1-19-P-0047). Alliance Technical Services Inc.,* Norfolk, Virginia, has been awarded a maximum $9,760,579 modification (P00005) exercising the first one-year option period of a one-year base contract (SP3300-18-C-5001) with four one-year option periods for third party logistics hazmat support services. This is a firm-fixed-price, cost-reimbursement contract. This was a competitive acquisition with three offers received. Locations of performance are Virginia and Texas, with an Aug. 26, 2020, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 Army working capital funds. The contracting activity is the Defense Logistics Agency Distribution, New Cumberland, Pennsylvania. United Technologies Corp., doing business as Pratt & Whitney Military Engines Division, East Hartford, Connecticut, has been awarded a maximum $7,114,128 firm-fixed-price contract for aircraft engine combustion chamber ducts. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.301-1. This is a two-year, ten-month contract with no option periods. Location of performance is Connecticut, with an Oct. 31, 2022, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is Defense Logistics Agency Aviation, Oklahoma City, Oklahoma (SPRTA1-19-F-0406). AIR FORCE Alloy Surfaces Co. Inc., Chester Township, Pennsylvania, has been awarded a $25,000,000, indefinite-delivery/indefinite-quantity contract for MJU-52 A/B aircraft decoy flares. This contract provides a highly specialized decoy with the capability to protect military aircraft from Man Portable Air Defense Systems and air-to-air missiles. Work will be performed at Chester Township, Pennsylvania, and is expected to be completed by August 2025. This award is the result of a sole-source acquisition. Fiscal 2018 ammunition procurement funds in the amount of $5,280,860 are being obligated at the time of award. The Air Force Life Cycle Management Center, Hill Air Force Base, Utah, is the contracting activity (FA8213-19-D-0011). Verdis-Takisaki JV, Coeur d-Alene, Idaho (FA4620-19-D-A007); National Native American Construction Inc., Coeur d-Alene, Idaho (FA4620-19-D-A010); Imperial Construction NW LLC, Wapato, Washington (FA4620-19-D-A012); and Sealaska Construction Solutions LLC, Seattle, Washington (FA4620-19-D-A013), have been awarded a combined, not-to-exceed $23,000,000 indefinite-quantity, multiple award, task order contract for design-build construction efforts. Work will be performed at Fairchild Air Force Base, Washington, and is to be expected to be complete by July 31, 2024. These awards are the result of a competitive acquisition in which eight offers were received. Fiscal 2019 operations and maintenance funds in the amount of $500 are being obligated to each company at the time of award. The 92d Contracting Squadron, Fairchild Air Force Base, Washington, is the contracting activity. Lockheed Martin Co., doing business as Lockheed Martin Space, Sunnyvale, California, has been awarded a $15,555,158 cost-plus-fixed-fee modification (P00150) to previously awarded contract FA8810-13-C-0002 for Space-Based Infrared System contractor logistics support for fiscal 2019 projects. This contract will provide an in-scope bilateral supplemental agreement executed in accordance with the terms of special clause requirement H00005. Work will be performed at Peterson Air Force Base, Buckley AFB, Greeley Air National Guard Station, and Boulder, Colorado, and is expected to be completed by Oct. 31, 2021. Fiscal 2019 3400 funds are being obligated at the time of award. Total cumulative face value of the contract is $1,500,933,962. The Air Force Space and Missile Systems Center, Peterson AFB, Colorado Springs, Colorado, is the contracting activity. (Awarded Aug. 13, 2019) Phase Sensitive Innovations, Newark, Delaware, has been awarded a $10,553,397 cost-plus-fixed-fee contract for research and development. This contract will design, develop and demonstrate RF-photonic systems, sub-systems, components and devices for the Coherent Homodyne Integrated RF-Photonic System. Work will be performed at Newark, Delaware, and is to be completed by Nov. 15, 2023. This award is the result of a Small Business Innovation Research III request for proposal acquisition with one offer received. Fiscal 2018 research and development funds in the amount of $10,553,397 are being obligated at time of award for the effort. The Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-19-C-1027). DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Raytheon BBN Technologies Corp., Cambridge, Massachusetts, was awarded a $13,130,426 cost-plus-fixed-fee contract for a Defense Advanced Research Projects Agency research project. Work will be performed in Cambridge, Massachusetts; and Columbia, Maryland, with an expected completion date of August 2023. Fiscal 2019 research, development, test and evaluation funds in the amount of $1,653,000 are being obligated at time of award. This contract was a competitive acquisition under an open broad agency announcement and nine offers were received. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity (HR001119C0102). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/1934626/source/GovDelivery/
6 juin 2024 | International, Aérospatial
The agreement, announced June 5, commits Lockheed to 15 launch reservations and up to 10 optional missions.