4 février 2021 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

To keep up with rivals, DoD nominee will weigh consolidation vs. innovation

By:

WASHINGTON ― President Joe Biden's nominee for deputy defense secretary, Kathleen Hicks, said she is “concerned” about consolidation in the defense industrial base, and that competition is needed to maintain an edge over China and Russia.

Hicks, whose office would review deals that involve national security issues if she is confirmed by the Senate, told lawmakers Tuesday that she would work with them to ensure a healthy defense industrial base. The comments came amid market expectations that defense deal-making could take off in 2021.

“Extreme consolidation does create challenges for innovation,” Hicks told the Senate Armed Services Committee. “We need to have a lot of different good ideas out there. That's our competitive advantage over authoritarian states like China, and Russia. And so if we move all competition out, obviously, that's a challenge for the taxpayer. But it's also a challenge in terms of the innovation piece.”

As the space sector and technological developments drive growth in the aerospace and defense sector and the pandemic weakens commercial aviation firms, companies are “likely to pursue opportunities for consolidation,” the consulting firm Deloitte said in a recent report.

Firms could seek new merger and acquisition opportunities, the report said, to “capture more value, drive cost-competitiveness, or acquire targeted niche capabilities and emerging technologies” such as “advanced air mobility, hypersonics, electric propulsion, and hydrogen-powered aircraft.”

Recent years have seen a number of major deals, including the combination of Harris and L3 Technologies, United Technologies Corp. and Raytheon; BAE Systems and Collins Aerospace, and General Dynamics and CSRA. Lockheed Martin's $4.4 billion acquisition of Aerojet Rocketdyne, announced in December, has yet to clear regulators.

The Federal Trade Commission and the Justice Department also review mergers and acquisition activity in the defense sector.

At Tuesday's hearing, Connecticut Democratic Sen. Richard Blumenthal, whose state hosts General Dynamics Electric Boat, told Hicks a drop in the number of submarine suppliers from 17,000 to 5,000 over recent decades suggested broader problems for the defense industrial base, problems that he said were, “extremely alarming to me.”

Blumenthal indicated Hicks had committed prior to the hearing to aid small suppliers struggling with the pandemic's economic fallout and to develop new small and medium suppliers. (This was one focus of DoD's acquisition and sustainment office under the previous administration.)

“I'm hoping you will focus on the supply chain that is vitally important to suppliers like Electric Boat or Raytheon or any of our major sources of supply,” said Blumenthal, who has served as the top Democrat on SASC's Seapower Subcommittee.

A broader theme for the hearing was how Hicks, whose job involves supervising the defense budget, would invest in forward-leaning technologies under a flat budget and divest from existing weapons platforms. Meanwhile, lawmakers grilled Hicks about whether she supported spending on nuclear modernization, shipbuilding and other programs with connections to lawmakers' home states.

Acknowledging the political and budget tensions, Hicks said she wants to link future budgetary decisions with concepts for operations, to buy “capabilities that actually line up to theories of victory for how we are trying to pace challenges from China and Russia.”

Other lawmakers told Hicks they wanted an easier paths for smaller, cutting edge firms from outside the Beltway to do business with the Pentagon and for them to scale production of their products, beyond the experimentation phase.

“We've had testimony before this committee that many smaller companies, particularly in Silicon Valley, and in the technology field generally have given up on the Pentagon, it's too complicated is too lengthy is too expensive, even to fill out the forms,” said Sen. Angus King, I-Maine.

For her part, Hicks said Tuesday she would “increase the speed and scale of innovation in our force,” and she would work to understand how alternative acquisitions methods are servings smaller non-traditional suppliers. She affirmed that those firms cannot survive on research and development funding alone.

“I do think a sustain level of [research and development] investment is vital, but we actually have to field capabilities, and that's a place where DoD has really struggled,” she said, adding that exercises and experiments help demonstrate the value of new technologies.

“When we can demonstrate value, then we're in a much better position to have a dialogue with Congress and with industry about where that where those capabilities can take us.”

https://www.defensenews.com/congress/2021/02/02/to-keep-up-with-rivals-dod-nominee-will-weigh-consolidation-vs-innovation/

Sur le même sujet

  • Contract Awards by US Department of Defense - December 6, 2018

    7 décembre 2018 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contract Awards by US Department of Defense - December 6, 2018

    AIR FORCE Northrop Grumman Amherst Systems, Buffalo, New York, has been awarded a $450,000,000 indefinite-delivery/indefinite-quantity contract for U.S. agencies (Air Force, Navy, etc.); and Foreign Military Sales countries for Joint Threat Emitter production end-items, spares, support equipment, testing, training, etc. Work will be performed in Buffalo, New York, and various contiguous U.S. and outside the continental U.S. locations, and is expected to be completed by Dec. 5, 2025. This contract involves foreign military sales to U.S. partner countries. This award is the result of a competitive acquisition and one offer was received. Fiscal 2018 other procurement funds in the amount of $9,150,318 are being obligated at the time of award. Air Force Life Cycle Management Center, Hill Air Force Base, Utah, is the contracting activity (FA8210-19-D-0001). The Boeing Co., Seattle, Washington, has been awarded a $158,950,309 firm-fixed-price modification (P00003) to contract FA8609-18-F-0006 for one KC-46A Japan aircraft. This modification provides for the exercise of an option for an additional quantity of one aircraft being produced under the basic contract. Work will be performed in Seattle and is expected to be completed by June 30, 2021. This modification involves foreign military sales to Japan. Total cumulative face value of the contract is $449,375,855. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. The Boeing Co., Oklahoma City, Oklahoma, has been awarded a sustainment order (FA8134-19-F-0001) with an estimated amount of $75,000,000 to previously awarded indefinite-delivery/indefinite-quantity contract FA8106-16-D-0002 for E-4B sustainment support. The order will provide contractor logistic support services. Work will be performed in Oklahoma City, Oklahoma; Offutt Air Force Base, Nebraska, and San Antonio, Texas, with an expected completion date of Nov. 30, 2019. This award is the result of a sole-source acquisition. Fiscal 2019 operations and maintenance funds in the amount of $57,188,079 are obligated at time of award. Air Force Life Cycle Management Center, Tinker AFB, Oklahoma, is the contracting activity. (Awarded Nov. 30, 2018) Dayton Power and Light Co., Dayton, Ohio, has been awarded a $28,179,453 modification (P00001) to contract FA8601-18-C-0010 to exercise Option One for electricity services. Work will be performed at Wright-Patterson Air Force Base, Ohio, and is expected to be completed by Dec. 31, 2019. No funds are being obligated at the time of award. Air Force Life Cycle Management Center, Wright-Patterson AFB, Ohio is the contracting activity. Raytheon Co., Marlborough, Massachusetts, has been awarded a $10,722,437, cost-plus-fixed-fee contract for the Force Element Terminal Risk Reduction effort. The contract will deliver risk reduction studies, analyses, and demonstrations related to Raytheon's Advanced Extremely High Frequency Airborne Military Satellite Communication product line. Work will be performed in Marlborough, Massachusetts, and is expected to be completed by Aug. 30, 2019. This award is the result of a sole-source acquisition. Fiscal 2018 and 2019 research, development, test and evaluation funds in the amount of $3,959,991 are being obligated at the time of award. Air Force Life Cycle Management Center, Hansom Air Force Base, Massachusetts, is the contracting activity (FA8705-19-C-0005). The Boeing Co., El Segundo, California, has been awarded a $10,361,265 modification (P00034) to contract FA8823-15-C-0002 for services required to ensure continued Wideband Global Satellite Communication operations and logistics sustainment support. The contract modification is for the exercise of Option Period Four. Work will be performed at Schriever Air Force Base, Colorado; El Segundo, California; and Colorado Springs, Colorado, and is expected to be completed Dec. 31, 2019. Fiscal 2019 operations and maintenance funds in the amount of $10,361,265 will be obligated at the time of award. Space and Missile Systems Center, Peterson Air Force Base, Colorado, is the contracting activity. Cloud Lake Technology, Herndon, Virginia, has been awarded an $8,875,620 modification (P00012) to contract FA8075-17-C-0002 for Information Analysis Center Program Management Office (IAC PMO) support. IAC PMO support services provides program management analysis, acquisition management, operations analysis, financial analysis, process improvement, strategic communications and performance measurement support. This modification provides for the exercise of an option for additional services under the basic contract, and brings the total cumulative face value of the contract to $21,870,362. Work will be performed at Fort Belvoir, Virginia, and is expected to be completed by March 31, 2020. Fiscal 2019 and 2020 research, development, test and evaluation funds in the amount of $2,904,150 are being obligated at the time of award. Air Force Installation Contracting Agency, Offutt Air Force Base, Nebraska, is the contracting activity. CORRECTION: The Nov. 14, 2018, announcement that Kaman Precision Products Inc., Orlando, Florida; and Middletown, Connecticut, was awarded a $52,026,000 firm-fixed-price modification (P00009) to contract FA8681-18-C-0009 for Joint Programmable Fuzes was incorrect. The contract was actually awarded Dec. 3, 2018. ARMY General Dynamics - Ordnance and Tactical Systems, Garland, Texas, was awarded a $264,767,596 firm-fixed-price contract for MK80 and BLU-109 Tritonal bomb components. Bids were solicited with one received. Work locations and funding will be determined with each order, with an estimated completion date of Oct. 31, 2023. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-19-D-0015). RIPTIDE Software Inc.,* Oviedo, Florida, was awarded a $103,221,000 hybrid (cost, cost-plus-fixed-fee, cost-plus-incentive-fee, firm-fixed-price) contract for the OneSAF system. Bids were solicited with three received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 5, 2024. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-19-D-0003). L3 Communications Security and Detection Systems, Woburn, Massachusetts, was awarded an $83,942,786 firm-fixed-price contract for manufacturing, delivering and supporting the AN/PSS-14. 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 Nov. 20, 2023. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W909MY-19-D-0001). General Dynamics Land Systems Inc., Sterling Heights, Michigan, was awarded a $58,088,134 firm-fixed-price contract for procurement of expedited active protection systems mounting kits and ballast kits to support the Abrams M1A2 battle tank. One bid was solicited with one bid received. Work will be performed in Sterling Heights, Michigan, with an estimated completion date of June 30, 2020. Fiscal 2018 and 2019 other procurement, Army funds in the amount of $12,739,706 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-19-C-0038). Weeks Marine Inc., Covington, Louisiana, was awarded a $12,787,500 firm-fixed-price contract for dredging. Bids were solicited with one received. Work will be performed in Plaquemines Parish, Louisiana, with an estimated completion date of May 26, 2019. Fiscal 2019 operations and maintenance Army funds in the amount of $12,787,500 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-19-C-0010). Tetra Tech-Maytag Aircraft Corp. J, Pasadena, California, was awarded a $9,043,009 modification (P00002) to contract W912DY-18-F-0056 for maintenance and repair of equipment. Work will be performed in Twenty Nine Palms, California; Bremerton, Washington; Barstow, California; Ridgecrest, California; El Centro, California; Fallon, Nevada; Lemoore, California; Port Orchard, Washington; Coronado, California; San Diego, California; Arlington, Washington; Everett, Washington; Bridgeport, California; Oceanside, California; Naval Air Station Point Mugu, California; Oak Harbor, Washington; San Clemente Island, California; San Nicholas Island, California; and Yuma, Arizona, with an estimated completion date of Dec. 30, 2019. Fiscal 2019 Defense Working Capital funds in the amount of $9,043,009 were obligated at the time of the award. U.S. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity. Broadway Electric Inc.,* Elk Grove Village, Illinois, was awarded a $7,173,000 firm-fixed-price contract for removing generators, paralleling switchgear, and replacing feeders. Bids were solicited with three received. Work will be performed in Battle Creek, Michigan, with an estimated completion date of Dec. 18, 2019. Fiscal 2015, 2018 and 2019 Economy Act Reimbursable funds in the amount of $7,173,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Detroit, Michigan, is the contracting activity (W911XK-19-C-0002). Eastman Aggregate Enterprises LLC,* Lake Worth, Florida, was awarded a $7,864,771 firm-fixed-price contract for flood control and coastal emergency beach erosion control. Bids were solicited with two received. Work will be performed in Broward County, Florida, with an estimated completion date of April 29, 2019. Fiscal 2018 operations and maintenance Army funds in the amount of $7,864,771 were obligated at the time of the award. U.S. Army Corps of Engineers, Jacksonville, Florida, is the contracting activity (W912EP-19-C-0006). NAVY BAE Systems Land & Armaments LP, Sterling Heights, Michigan, is awarded a $140,354,780 modification to exercise options for the fixed-price-incentive (firm target) Contract Line Item Numbers (CLIN) 3001, 3002, and 3003 portions of a previously awarded contract (M67854-16-C-0006). This modification is for the purchase of 30 Amphibious Combat Vehicles and associated production, fielding and support costs. Work will be performed in York, Pennsylvania (85 percent); and Aiken, South Carolina (15 percent), and is expected to be completed in August 2020. Fiscal 2019 procurement (Marine Corps) funds in the amount of $140,354,780 will be obligated at the time of award and will not expire at the end of the current fiscal year. This contract was competitively procured with proposals solicited via the Federal Business Opportunities website. The option CLINs were included within that contract and are being exercised in accordance with FAR 52.217-7 option for increased quantity-separately priced line item. The U.S. Marine Corps' Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-16-C-0006). Emprise Corp. LLC, Ledyard, Connecticut, was awarded a $96,470,026 firm-fixed-price level of effort with a five-year ordering period for Shipboard Automated Maintenance Management Systems (SAMM). Engineering services in this contract will assist Military Sealift Command (MSC) afloat and ashore operations. The engineering maintenance management systems consist of both afloat and ashore systems with various modules and functions that work together to optimize MSC maintenance programs. SAMM is required for shipboard personnel to document maintenance performed on MSC vessels and record daily machinery operational data. The system also provides a consistent maintenance plan for the MSC fleet. This engineering system is a recurring requirement, which will allow MSC to continuously achieve interoperability and maintain and sustain fleet operations. Work will be performed in Norfolk, Virginia, and work is expected to be completed Dec. 9, 2023. This contract will be funded with Fiscal 2018 working capital funds (Navy and U.S. Transportation Command) funds in the amount of $10,000,000 will be obligated at the time of award. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured with proposals solicited via the Federal Business Opportunities website, having one offer received. The U.S. Navy's Military Sealift Command, Norfolk, Virginia, is the contracting activity (N3220519D1001). (Awarded Dec. 5, 2018) BAE Systems San Diego Ship Repair (BAE), San Diego, California, was awarded a $78,847,897 firm-fixed-price contract for the execution of the USS Shoup (DDG 86) fiscal 2019 Depot Modernization Period Availability (DMP). This availability will include a combination of maintenance, modernization and repair of USS Shoup. This is a Chief of Naval Operations-scheduled DMP. The purpose is to maintain, modernize and repair USS Shoup. This is a “long-term” availability and was competed on a coastwide (west coast) basis without limiting the place of performance to the vessel's homeport. BAE will provide the facilities and human resources capable of completing, coordinating and integrating multiple areas of ship maintenance, repair and modernization for USS Shoup. This contract includes options which, if exercised, would bring the cumulative value of this contract to $87,672,675. Work will be performed in San Diego, California, and is expected to be completed by February 2020. Fiscal 2019 operations and maintenance (Navy) funding in the amount of $59,836,401; and fiscal 2019 other procurement (Navy) funding in the amount of $19,011,496 will be obligated at time of award, and $59,836,400 will expire at the end of the current fiscal year. This contract was competitively procured using full and open competition via the Federal Business Opportunities website, with two offers received in response to solicitation N00024-18-R-4407. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-4407). (Awarded Dec. 3, 2018) L-3 Communications Vertex Aerospace LLC., Madison, Mississippi, was awarded a $21,845,138 modification (P00035) to a previously awarded firm-fixed-price, cost-reimbursable, labor hour, indefinite-delivery, indefinite-quantity contract (N00019-13-D-0007). This modification increases the ceiling and extends the period of performance to provide contractor logistics services and materials for organizational and depot-level services required to support and maintain the TH-57 fleet. Work will be performed in Milton, Florida, and is expected to be completed in January 2019. No funds will be obligated at time of award. Funds will be obligated on individual task orders as they are issued. The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity. Teledyne Wireless LLC, a Teledyne Microwave Solutions Company, Rancho Cordova, California, is awarded an $8,243,062 firm-fixed-price, cost-plus-fixed-fee indefinite-delivery/indefinite-quantity contract in support of evaluation, minor repair and manufacture of 10kW traveling wave tubes; manufacture of 13kW traveling wave tubes; government-furnished equipment maintenance for traveling wave tubes; and incidental engineering services. Work will be performed in Rancho Cordova, California, and is expected to be completed by November 2023. This work is to support subcomponents of the Aegis Combat System. The traveling wave tube design was developed by Teledyne Wireless LLC, who has proprietary design rights for the 10kW and 13kW traveling wave tubes. Fiscal 2018 other procurement (Navy) funding in the amount of $196,276 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured, in accordance with Federal Acquisition Regulation 6.302-1 (only one responsible source and no other supplies or services will satisfy agency requirements). The Naval Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity (N00164-19-D-WP83). Black Construction/Mace International JV, Harmon, Guam, is awarded firm-fixed-price task order N4008419F4086 for $27,350,842 under a multiple award construction contract for the design build repair of Unaccompanied Personnel Housing (UPH) -13 and UPH-17 at U.S. Navy Support Facility, Diego Garcia. The work to be performed provides for repairs to the building components and utility systems which are old and increasingly deteriorated. The work will also address life safety and energy deficiencies which have begun to generate intensive maintenance and reliability concerns. Work will be performed in Diego Garcia, British Indian Ocean Territory, and is expected to be completed by August 2023. Fiscal 2019 operations and maintenance, (Navy) contract funds in the amount of $27,350,842 are obligated on this award and will expire at the end of the current fiscal year. Two proposals were received for this task order. The Naval Facilities Engineering Command, Far East, Yokosuka, Japan, is the contracting activity (N40084-18-D-0066). DEFENSE LOGISTICS AGENCY Creation Gardens Inc.,* Louisville, Kentucky, has been awarded a maximum $49,500,000 firm-fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for fresh fruits and vegetables. This was a competitive acquisition with one response received. This is a 36-month contract with no option periods. Locations of performance are Kentucky and Indiana, with a Dec. 4, 2021, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps, and Department of Agriculture schools. Type of appropriation is fiscal 2019 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-19-D-P344). Heart and Core LLC, Minnetonka, Minnesota, has been awarded a maximum $7,920,000 modification (P00011) exercising the second one-year option period of a one-year base contract (SPE1C1-17-D-1018) with four one-year option periods for moisture wicking T-shirts. This is an indefinite-delivery contract. Locations of performance are California and Minnesota, with a Dec. 15, 2019, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1707044/

  • Spain’s military still has eyes for the F-35 despite European fighter push

    13 juin 2019 | International, Aérospatial

    Spain’s military still has eyes for the F-35 despite European fighter push

    By: Sebastian Sprenger MADRID – The Spanish navy and air force are still interested in the American F-35 fighter jet, even though the government is about to join a Franco-German program to develop a new European plane. The two services are in the beginning stages of an analysis in which the Lockheed Martin-made aircraft is emerging as a key contender, officials told reporters on the sidelines of the FEINDEF defense expo here in late May. For the navy, the choice for the short-takeoff-and-landing variant of the jet, dubbed the F-35B, appears to be more clear-cut than for the air force. The Spanish navy wants to replace its 12 Harrier jets, which are launched from the LPH Juan Carlos I. That ship's short, ski-jump deck makes the F-35B the only option on the market, according to Cdr. Antonio Estevan, a staff officer at the service's plans and policy division. “From a technical point of view, it's a very interesting option for us,” Estevan said. “The problem is the cost. The version for us would be, as far as I know, $100 million; the air force version $80 million. We are talking about high prices. Even the American president was surprised when he realized the cost.” Air force officials, meanwhile, are keeping their options more open when it comes to replacing the service's 84 Boeing-made F-18s. Twenty planes of the “A” variant, stationed on the Canary Islands, need to be replaced first, by 2025, according to Brig Gen. Juan Pablo Sanchez de Lara, chief of the Spanish Air Force's plans division. Airbus has its eyes on that business and is offering to outfit the squadron with the Eurofighter. While that outcome is also the air force's expectation, a replacement for the rest of the F-18 fleet, 64 planes of the “M” designation, is still up for grabs, according to Sanchez de Lara. The two services cooperating on the requirements of a potentially joint program means the F-35 is on the table in some form or another, though it's unclear how compatible the branches' needs will be in the end. “For the navy, it's a very simple solution because they need an aircraft for vertical, short takeoff,” Sanchez de Lara said. “For us, it's different.” Both services want new aircraft by around 2030. That would be ten years before the Future Combat Air System program, led by Airbus and Dassault, is scheduled to field a new combat aircraft. The situation in Spain is reminiscent of the choice Germany faced about the F-35, and the government's decision earlier this year to ditch the plane as a contender to replace the Tornado. The Luftwaffe, the German air force, was reportedly in favor of the American fifth-generation plane, while the defense ministry's civilian leadership preferred an upgraded version of the Eurofighter Typhoon. Airbus had lobbied hard against the F-35, arguing that the pick of a new U.S. aircraft at this stage would effectively sink the entire FCAS project. Meanwhile, two F-35s arrived at Llanos Air Base near Albacete, Spain, earlier this week for training with other NATO air forces, according to announcements from the U.S. Air Force and NATO. During the Tactical Leadership Program officials practiced integrating the aircraft into a search-and-rescue drill to extract friendly forces from enemy territory, a June 11 alliance statement reads. https://www.defensenews.com/global/europe/2019/06/12/spains-military-still-has-eyes-for-the-f-35-despite-european-fighter-push/

  • U.S. State Department OKs potential sale of sonar system to Australia -Pentagon

    4 mai 2023 | International, C4ISR

    U.S. State Department OKs potential sale of sonar system to Australia -Pentagon

    The U.S. State Department has approved the potential sale of a sonar system and related equipment to Australia in a deal valued at up to $207 million, the Pentagon said on Thursday.

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