28 septembre 2018 | International, Aérospatial

US Air Force awards $9B contract to Boeing-Saab for next training jet

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WASHINGTON — A Boeing-Saab partnership has won a $9.2 billion contract to produce the U.S. Air Force's next-generation training jet.

Boeing's award for the T-X trainer program marks the third major victory by the company in about a month, following an $805 million contract to build the Navy's first four MQ-25 unmanned tankers, and a contract worth up to $2.38 billion to manufacture the Air Force's Huey replacement helicopter. The T-X downselect was first reported by Reuters.

As the winners of the competition, Boeing and Swedish aerospace firm Saab are set to capture sales of at least 351 training jets to the U.S. Air Force, with possibly more in the international market. The program promises to keep Boeing's tactical aircraft business strong after the F-15 and F/A-18 Super Hornet lines disappear in the next decade.

"Today's announcement is the culmination of years of unwavering focus by the Boeing and Saab team,” said Leanne Caret, president and CEO of Boeing's defense business. “It is a direct result of our joint investment in developing a system centered on the unique requirements of the U.S. Air Force. We expect T-X to be a franchise program for much of this century.”

The indefinite-delivery/indefinite-quantity contract will allow the Air Force to buy up to 475 aircraft and 120 simulators, the Air Force said in a Sept. 27 statement, although the current plan is to buy 351 T-X aircraft, 46 simulators and associated ground equipment.

The Air Force stated that the T-X program originally was to cost about $19.7 billion, and that Boeing's bid shaved $10 billion off that amount.

“This new aircraft will provide the advanced training capabilities we need to increase the lethality and effectiveness of future Air Force pilots,” Air Force Secretary Heather Wilson said in the news release. “Through competition we will save at least $10 billion on the T-X program.”

Although the contract could be worth up to $9.2 billion, that sum is by no means a sure thing for Boeing.

During a briefing with reporters on Thursday afternoon, Will Roper, the service's acquisition executive, and Lt. Gen. Arnold Bunch, its top uniformed acquisition official, said the $9.2 billion amount would be obligated to Boeing if the service executes all of options that would allow it to buy more aircraft at a quicker pace, purchasing all 475 planes.

Additionally, Boeing assumes the preponderance of the risk with the T-X program, which starts as a fixed-price incentive fee contract, but at the fifth lot will transition to a firm-fixed price structure, Roper and Bunch said.

Boeing and Saab's clean-sheet trainer, designed specifically for the Air Force, beat out Leonardo DRS and a Lockheed Martin-Korea Aerospace Industries partnership. Throughout the competition, the Boeing-Saab jet was seen as the front-runner by analysts like Roman Schweizer of Cowen Washington Research Group, who pointed to Boeing's aggressive bidding strategy and ability to absorb financial losses on programs like the KC-46 tanker aircraft.

The T-X program is the Air Force's last major aircraft procurement opportunity up for grabs for some time, as the service's contracts for its next-generation fighter, tanker and bomber have already been awarded, as have the last remaining new-start helicopter contracts. As such, the decision could potentially trigger a protest with the Government Accountability Office.

But Roper and Bunch pointed to the repeated interaction with industry through the competition, which could shield it from a protest, and lessons learned from previous programs on how to structure a competition.

Roper also defended the service's selection of Boeing's design, which was the only proposed aircraft that was not a modified version of an existing plane.

“We have a very deliberate process to evaluate risk, cost, and technical factors in the program and so its rigorous because we do have to evaluate things that have variances in them. The team looked at that, rolled up cost benefit, technical factors sand risk, to give best value to the government and overall our assessment was Boeing had a proposal that was best value,” Roper said.

Under the initial $813 million award, Boeing will be responsible for delivering five T-X aircraft and seven simulators, with the first simulators arriving at Joint Base San Antonio-Randolph, Texas, in 2023. According to the T-X request for proposals issued in December 2016, the Air Force will then execute contract options for two batches of low-rate production and eight rounds of full-rate production. The contract also includes ground training systems, mission planning and processing systems, support equipment, and spares.

Initial operating capability is planned by the end of fiscal 2024 when the first squadron and its associated simulators are all available for training. Full operational capability is projected for 2034.

Beyond the 351-aircraft program of record, analysts have speculated there could be significant international interest in T-X from countries that plan to fly the F-35 fighter jet or from the U.S. Air Force as it considers buying new aggressor aircraft for air-to-air combat training, making the opportunity potentially even more lucrative.

Although each of the three competing teams offered very different trainers to the Air Force, they were united by their cooperation with international aircraft manufacturers.

Boeing partnered with Saab, which is building the aircraft's aft fuselage and other systems.

The team produced two single-engine, twin-tailed prototypes, which were unveiled at Boeing's St. Louis, Missouri, facility to much fanfare in 2016. Saab promised that, should the partnership emerge victorious, it would build a new plant in the United States for its T-X work, although a location has not been announced.

Leonardo DRS and Lockheed Martin offered modified versions of existent designs, hoping that a mature aircraft would be more palatable as the U.S. Air Force continues to foresee budgetary challenges in its future.

DRS' T-100 is based on the Leonardo M-346 trainer, which is being sold to two F-35 users — Italy and Israel — as well as Singapore. Leonardo initially looked to partner with a big-name U.S. defense prime, first joining with General Dynamics and then, when that teaming agreement fell apart, Raytheon.

Ultimately, Leonardo and Raytheon couldn't agree on pricing for the T-100, leading that partnership to also break up in January 2017.

After Leonardo DRS was tapped to prime the program, the company announced its intention to do structural subassembly, final assembly and check out of the aircraft stateside at Moton Field in Tuskegee, Alabama, where it would build a new $200 million facility.

Lockheed Martin meanwhile joined with Korea Aerospace Industries — a longtime collaborator who manufactured South Korea's version of the F-16 — for a modified version of KAI's T-50. Lockheed said that its T-50A would be built in Greenville, South Carolina, where it also plans to fabricate the F-16 in the future.

https://www.defensenews.com/breaking-news/2018/09/27/reuters-air-force-awards-9b-contract-to-boeing-for-next-training-jet/

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  • NGEN-R: What is the Navy thinking?

    20 septembre 2018 | International, Naval, C4ISR

    NGEN-R: What is the Navy thinking?

    By: Amber Corrin The Navy released a long-awaited final request for proposals Sept. 18 for the re-compete of its Next Generation Enterprise Network contract. But it's part one of two, covering only the hardware side of things as the service looks to overhaul its Navy-Marine Corps Intranet. According to analysts at Deltek, each piece of the NGEN-R request is valued at roughly $250 million over a three-year period, per estimates from Space and Naval Warfare Systems Command. That's significantly lower than NGEN's original $3.5 billion price tag. Specifically, the RFP seeks hardware devices for use on the Department of Defense's classified and unclassified networks, including desktops, laptops, two-in-one detachable devices, tablets, ultra-small desktop computers, as well as thin- or zero-client devices. A single device could serve multiple users and associated accounts, according to the RFP. But for the roughly 400,000 devices NGEN-R looks to replace, the service in particular is looking at an end-user hardware-as-a-service arrangement. “It's breaking out the services that are being provided in a way that allows us to gain most effective advantage of how industry does business today,” Capt. Don Harder, deputy program executive officer for Navy enterprise information systems, told Federal Times in a recent interview. “The end user of hardware and devices as its own separate contract, there are those suppliers out there that that's what they specialize in. By breaking that out into its own contractual component within the NGEN-R construct ... we believe will allow us to get more effective advantage to pricing on those components.” The language in the RFP solidifies Harder's thoughts as part of the statement of work. “In acquiring EUHWaaS, the Government is only acquiring the service of using an EUHW device. This is not a purchase, and titles for all EUHWaaS devices remain with the Contractor,” the RFP states. “EUHWaaS includes the provisioning, storage of spares, configuration, testing, integration, installation, operation, maintenance, [end-of-life] disposal of NIPRNet and SIPRNet EUHW, and internal storage device removal and destruction requirements.” Bids for the hardware piece of NGEN-R are due Nov. 19. The second part of the NGEN-R RFP, service management integration and transport or SMIT, is expected in the next 30 days, according to a Navy spokesman. SMIT will cover much of NMCI's backbone and functionality, including services ranging from help desk to productivity suites to network defense — and how they're technically provided. Splitting NGEN-R into two separate contracts was an intentional move designed, at least in part, to give the Navy greater flexibility in the capabilities available to users, and the options for buying them, as technology evolves. “We are modifying how the services are broken out in a way that it allows us to sever some of those services as new mechanisms [and] provide [them as they are] brought into play or brought to our attention,” Harder said, using cloud capabilities as an example. “We may allow a mechanism to pull some of those into either a hybrid cloud or a cloud solution in the future. If so, it may go on a separate contractual vehicle at which point in time we would sever those services away from the SMIT vehicle. So, we're looking at how we take those services and how we manage them contractually, which would allow us, again additional flexibility later on down the road.” Harder said that throughout the development of NGEN-R, he's been eyeing not just the Navy, but also the broader government to benefit from the new approach. “We're building in that flexibility that allows the government the ability in the future even to find components of services that can be done in a more effective or efficient way [and] either sever them or modify them separately as opposed to having to break apart the entire contract to do something,” he said. The hardware piece of NGEN-R was released less than two weeks after Navy officials announced a one-year, $787 million extension to the incumbent provider, Perspecta. Harder declined to put a dollar figure on the NGEN-R contract, as did other Navy officials. The RFP comes after several delays — officials previously had said the contract would be up for bidding this summer. According to Harder, prior to release the RFP had to be approved by leadership at the Office of the Assistant Secretary of the Navy for research, development and acquisition, as well as the Office of the Secretary of Defense's Defense Procurement and Acquisition Policy office. Harder said the Navy has taken extra time to shore up “the education piece” — ensuring the contracting process meets leaders' expectations, particularly with the new strategy. And IT modernization also has come into play, with officials from the broader DoD looking to NGEN as a possible model or even contract vehicle for defense networks down the line, he said. “We need to ensure that what we have placed in the contract and how we're going about the contract meets leadership expectations. And because we are doing things in a different way, that's taking a little bit of time,” Harder said. The Navy's approach to running NMCI today is “one of the more cost-effective ways of managing networks. And there is a desire as part of one of the many IT reform efforts [for possible] integration of networks in the future to mimic or, potentially, even ride on our contracts.” https://www.federaltimes.com/acquisition/2018/09/19/ngen-r-what-is-the-navy-thinking

  • Contract Awards by US Department of Defense - January 23, 2020

    23 janvier 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contract Awards by US Department of Defense - January 23, 2020

    AIR FORCE Northrop Grumman Systems Corp., doing business as Northrop Grumman Mission Systems, San Diego, California, is being awarded a $217,160,682 modification (P00021) to previously-awarded base contract FA8726-18-C-0005 to extend the contract by an additional year. This contract provides for Battlefield Airborne Communications Node payload operation and support for payload equipment and services. Work will be performed at San Diego, California, and undisclosed overseas locations, and is expected to be complete by Jan. 23, 2021. Fiscal 2020 operations and maintenance funds in the amount of $20,000,000 are being obligated at the time of award. Total cumulative face value of the contract is $570,165,699. The Air Force Life Cycle Management Center, Hanscom Air Force Base, Massachusetts, is the contracting activity. Lockheed Martin Corp., Ft. Worth, Texas, has been awarded a $7,794,188 modification under modification 21 to previously-awarded contract FA8650-16-C-7656 for research and development. The contract modification is for the incorporation of additional within-scope work to further the technologies established under current System of Systems Integration Technology and Experimentation program. Work will be performed at Ft. Worth, Texas, and is expected to be completed by March 31, 2021. Fiscal 2019 and 2020 research, development, test and evaluation funds in the amount of $5,000,000 are being obligated at the time of award. Total cumulative face value of the contract is $52,337,677. The Air Force Research Lab, Wright Patterson Air Force Base, Ohio, is the contracting activity. NAVY M.C. Dean Inc., Tysons, Virginia, is awarded a $98,000,492 single award, indefinite-delivery/indefinite-quantity performance-based contract (N65236-20-D-8001) with provisions for cost-plus-fixed-fee and firm-fixed-price task/delivery orders. This contract is for the design, development and sustainment of electronic security systems and emergency management systems solutions for Department of Defense and federal agencies at shore installations worldwide. The contract will provide rapid and streamlined procurement of electronic security systems and emergency management systems solutions where there are emerging or special security requirements that require rapid response in order to mitigate and limit risk exposure to cyber and physical security threats. The contract includes a five-year ordering period. Contract funds in the amount of $25,000 will be obligated at the time of award. Work will be performed in Washington, District of Columbia (77%); and Charleston, South Carolina (23%), and is expected to be completed by January 2026. Contract funds will not expire at the end of the current fiscal year. The contract was competitively procured by full and open competition via the Naval Information Warfare Systems Command-Electronic Commerce Central website and the Federal Business Opportunities website, with one timely offer received. Naval Information Warfare Center Atlantic, Charleston, South Carolina, is the contracting activity. DEFENSE LOGISTICS AGENCY Florida Ordnance Corp.,* Fort Lauderdale, Florida, has been awarded a maximum $48,586,695 indefinite-delivery/indefinite-quantity contract for M88 Recovery Vehicle diesel cylinder heads. This was a competitive acquisition with two responses received. This is a five-year contract with no option periods. Location of performance is Florida, with a March 26, 2026, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-20-D-0038). UPDATE: Enterprise Cabling Inc., Ocean City, Maryland (SPRBL1-20-D-0017), has been added as an awardee to the multiple award contract issued against solicitation SPRBL1-19-R-0042 announced Dec. 18, 2019. ARMY Scientia Global Inc.,* Melbourne, Florida, was awarded a $12,149,039 firm-fixed-price Foreign Military Sales (Iraq) contract to procure combat effective Digital Mobile Radio Tier III equipment, development, deployment, training and support services. One bid was solicited via the internet with one bid received. Work will be performed in Erbil, Iraq; and Melbourne, Florida, with an estimated completion date of April 29, 2022. Fiscal 2017 Foreign Military Sales funds in the amount of $12,149,039 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W91CRB-20-C-5012). *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2063144/source/GovDelivery/

  • Contract Awards by US Department of Defense - May 3, 2019

    6 mai 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité, Autre défense

    Contract Awards by US Department of Defense - May 3, 2019

    U.S. SPECIAL OPERATIONS COMMAND Insitu Inc., Bingen, Washington, was awarded a maximum $23,000,000 modification (P00019) for an existing non-competitive, single award, indefinite-delivery/indefinite-quantity contract (H92222-16-D-0031) for Mid-Endurance Unmanned Aircraft Systems (MEUAS) 1.5B intelligence, surveillance, and reconnaissance (ISR) services. The $23,000,000 increase to a ceiling of $273,000,000 prevents gaps in ISR services until all task orders are transitioned to the current competitive MEUAS III contracts. Fiscal 2019 operations and maintenance funds in the amount of $7,354,530 are available for obligation at the task order level. U.S. Special Operations Command Headquarters, Tampa, Florida, is the contracting activity. NAVY Valiant Global Defense Services Inc., San Diego, California, is awarded $15,913,990 for firm-fixed-price task order M67854-19-F-7884 under previously award contract M67854-19-D-7876 to provide support services for the Marine Air Ground Task Force (MAGTF) Training Support Service (MTSS), MAGTF Staff Training Program (MSTP). Services will include pre-deployment training programs to Marine Corps operating forces, as well as command, control, communications, and computer mobile training team training at the functional and executive level to commanders and battle staffs, and technical training for operators and information managers. Work will be performed in Quantico, Virginia, and is expected to be completed by November 2020. Fiscal 2019 operations and maintenance (Marine Corps) funds in the amount of $5,380,849 will be obligated at the time of award and these funds will expire at the end of the current fiscal year. This order was competitively awarded under a multiple award task order contract. The Marine Corps Systems Command, Quantico, Virginia, is the contract activity. Lockheed Martin Corp., Fort Worth, Texas, is awarded $7,514,515 for modification P00015 to a previously awarded fixed-price-incentive-fee contract (N0001918C1048) to establish organic depot component repair capabilities for the F-35 Lightning II Air Interceptor System in support of the Air Force, Marine Corps and Navy. Work will be performed in Rochester, Kent, United Kingdom (81.6 percent); and Fort Worth, Texas (18.4 percent), and is expected to be completed in March 2023. Fiscal 2017 aircraft procurement (Air Force); and fiscal 2019 aircraft procurement (Navy, Marine Corp. and Air Force) funds in the amount of $7,514,515 are being obligated at time of award, $3,757,257 of which will expire at the end of the current fiscal year. This contract combines purchases for the Air Force ($3,757,257; 50 percent); Marine Corps ($1,878,629; 25 percent); and Navy ($1,878,629; 25 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. ARMY A4 Construction Company Inc.,* Sandy, Utah, was awarded a $12,309,817 firm-fixed-price contract for construction of a Special Operation Forces Human Performance Training Center. Bids were solicited via the internet with eight received. Work will be performed in Fort Carson, Colorado, with an estimated completion date of May 6, 2021. Fiscal 2019 military construction funds in the amount of $12,309,817 were obligated at the time of the award. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-19-C-0018). DEFENSE LOGISTICS AGENCY Federal Prison Industries, Inc.,** doing business as UNICOR, Washington, District of Columbia, has been awarded a maximum $9,558,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for parkas. This is a one-year base contract with two one-year option periods. Locations of performance are Washington, District of Columbia; and Kentucky, with a May 2, 2020, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-F024). *Small business **Mandatory source https://dod.defense.gov/News/Contracts/Contract-View/Article/1836925/source/GovDelivery/

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