14 août 2018 | International, Naval
By: David B. Larter
WASHINGTON — The U.S. Navy intends to get much bigger, and that has meant new openings for European companies in the U.S. defense market.
The Navy's new over-the-horizon missile destined for the littoral combat ship and the future frigate was recently awarded to the Norwegian firm Kongsberg, in partnership with U.S. company Raytheon, for its Naval Strike Missile.
The future frigate program itself has awarded contracts to Spain's Navantia and Italy's Fincantieri for design work before the Navy selects a design later this year, meaning the service's next surface combatant may be a European design. And for the Navy's future training helicopter, both Franco-Dutch company Airbus and Italian firm Leonardo are top competitors for that program.
Analysts say the Navy's recent surge in interest has been spurred by a confluence of circumstances that could mean even more opportunities for foreign companies looking to break into the U.S. market.
Increased defense budgets are one reason the European companies have been seeing more business from the Navy and other American military branches. But a shift in the way the Defense Department tries to fill capabilities gaps has made the space more competitive for overseas firms, said Dan Gouré, a defense analyst with the Lexington Institute think tank.
As the Navy and other services have shifted toward great power competition, it has found a number of capabilities that were not hugely important in a unipolar world have again become requirements with the reemergence of Russia and the rise of China as security threats. One such area is the small surface combatant, or FFG(X) program, which would be needed to escort supply convoys and work as a survivable sensor node in a larger surface combatant network.
“With the frigate, for example, we hadn't built one of those in 40 years, but the Europeans have been building them for decades,” Gouré noted. “And if we needed a diesel-electric sub, they'd of course be the first in line.”
This emphasis on speed of acquisition has also helped because the Navy and the rest of the Department of Defense are reluctant to get tied down by a yearslong, inevitably over-budget development process unless necessary, Gouré said.
“The trend has been toward [other transaction authority] contracts, and that has made the European companies credible competitors,” he said.
Another factor is that the Navy has been more willing to make trades on capabilities, said Bryan Clark, an analyst with the Center for Strategic and Budgetary Assessments.
“I think what's new is that the Navy is openly seeking foreign proposals for some of these major new programs,” Clark said. “Foreign companies have always been able to submit proposals in response to RFPs, but usually they don't offer the high-end capability the U.S. is usually seeking.
“The big change is that the Navy is willing to get a less-sophisticated capability in to get a design that is more mature.”
In the case of the Navy's trainer helicopter competition, past success with European companies inside the DoD could be a driving factor in Airbus' and Leonardo's competitive bids.
Airbus' North American division has been successful with the U.S. Army's Lakota program, built by Airbus Helicopters in Columbus, Mississippi, which is where the company would build its H135 helicopter if selected for the program. The Army has been happy with Lakota, so much so that it has been pushing to buy more of the airframes despite legal battles over the contracts.
But the success of Airbus Helicopters with the Army is possible for much the same reason that, for example, Australian-owned Austal USA has been successful building both the trimaran version of the littoral combat ship and the expeditionary fast transport: a major manufacturing infrastructure investment in the United States.
And that kind of cash outlay for a program can scare away European competitors. Getting around “Buy American” provisions would literally take an act of Congress. Despite having already developed, tested and fielded the capability the Navy wants, Kongsberg had to team with American defense giant Raytheon to sell its missile to the DoD.
The “Buy American” provisions laid down and regularly upheld by Congress for defense procurement does have protectionist overtones, but there is a national security argument as well. In the event of a major, protracted conflict with Russia or China, it wouldn't be advantageous to have major suppliers located an ocean away or in occupied territory.
And maintaining the industrial base has long been a concern of the U.S. Navy because of the limited the number of trained workers with experience who are building ships and nuclear reactors.
Navy officials have testified that the shrinking industrial base, including the shipbuilders and the litany of subcontractors and vendors, is a significant concern. In 2015, then-head of the Navy's research, development and acquisition office Sean Stackley testified before Congress that some of the shipyards were just a contract away from going under.
“We have eight shipyards currently building U.S. Navy ships. And of those eight shipyards, about half of them are a single contract away from being what I would call ‘not viable,' ” Stackley told the Senate Armed Services Committee. “In other words, the workload drops below the point at which the shipyard can sustain the investment that it needs to be competitive and the loss of skilled labor that comes with the breakage of a contract.”
11 décembre 2023 | International, Terrestre
A former senior executive of the Asian Infrastructure Investment Bank (AIIB) told a House of Commons committee Monday he doesn’t believe the international financial institution can be reformed as long as China remains on its current geopolitical course.
8 octobre 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité, Autre défense
AIR FORCE Hydraulics International Inc., Chatsworth, California, has been awarded a $377,357,493 firm-fixed-price, requirements-type, indefinite-delivery/indefinite-quantity contract for multiple pieces of hydraulic equipment and hydraulic fluid purification systems to be used on multiple aviation platforms. Work will be performed in Chatsworth, California, and is expected to be completed Oct. 7, 2029. This award is a result of a sole-source acquisition. Fiscal 2021 aircraft procurement; and future fiscal aircraft procurement funds will be obligated upon availability for task orders. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8532-21-D-0001). PKL Services Inc., Poway, California, has been awarded a $13,757,191 firm-fixed-price modification (P00008) to contract FA4897-18-C-2002 to continue providing military aircraft F15 SG maintenance and operations training. This contract provides for the Republic of Singapore Air Force training on F15 aircraft, and includes both maintenance and operations on the F15 aircraft. Work will be performed at Mountain Home Air Force Base, Idaho, and is expected to be completed Sept. 30, 2022. Foreign Military Sales funds in the full amount are being obligated at the time of award. The 366th Financial Acquisition Squadron, Mountain Home AFB, Idaho, is the contracting activity. Honeywell International Inc., Minneapolis, Minnesota, has been awarded an $11,638,078 modification (P00006) to contract FA9453-19-C-0010 to exercise Option Two for critical design review, providing research options for Space Enterprise Technologies. The contractor shall conduct experiments, evaluate, and perform process development back-end pillar fabrication process. Work will be performed in Minneapolis, Minnesota, and is expected to be completed April 14, 2022, per Option Two: Critical Design Review contract line item number 2001 and a Military interdepartmental purchase request from HQ0157 Office of the Under Secretary of the Air Force – Acquisition, Technology and Logistics will be obligated to incrementally fund the option at time of modification. Total cumulative face value of the contract is $17,361,381. Air Force Research Laboratory, Kirtland Air Force Base, New Mexico, is the contracting activity. CORRECTION: The dollar amounts awarded and obligated on Oct. 1, 2020, to Gryphon Technologies L.C., Washington, D.C. (FA7022-21-D-0001), for the processing, analysis and quantitative evaluation of environmental samples and other associated services in support of the Air Force Technical Applications Center's mission were announced inaccurately. The contract amount is actually $49,503,924, and the obligated amount is $4,160,824. DEFENSE LOGISTICS AGENCY Senn Brothers Inc.,* West Columbia, South Carolina, has been awarded a maximum $225,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for fresh fruit and vegetables. This was a competitive acquisition with two responses received. This is a five-year contract with no option periods. Location of performance is South Carolina, with an Oct. 3, 2025, ordering period end date. Using customers are Army, Navy, Air Force, Marine Corps, Coast Guard and Department of Agriculture schools. Type of appropriation is fiscal 2021 through 2026 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-21-D-P365). The Boeing Co., St. Louis, Missouri, has been awarded a maximum $149,528,875 firm-fixed-price delivery order (SPRPA1-21-D-9001) against five-year basic ordering agreement SPRPA1-14-D-002U for KC-46 Commercial Common Program consumable parts. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a three-year base contract with two one-year option periods. Location of performance is Missouri, with an Oct. 7, 2023, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2021 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. L1 Enterprises Inc., Frederick, Maryland, has been awarded a maximum $45,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for medical equipment and accessories for the Defense Logistics Agency electronic catalog. This was a competitive acquisition with 131 responses received. This is a five-year contract with no option periods. Location of performance is Maryland, with an Oct. 6, 2025, ordering period end date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2021 through 2026 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-21-D-0050). * Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2375598/source/GovDelivery/
14 décembre 2018 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
DEFENSE LOGISTICS AGENCY Michelin North America Inc., Greenville, South Carolina, has been awarded a maximum $51,004,943 firm-fixed-price, indefinite-quantity, requirements contract to provide tire support for the global tires program. This was a competitive acquisition with seven responses received. This is a three-year contract with no option periods. Location of performance is South Carolina, with a Dec. 10, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7L1-19-D-0006). Practicon Inc., Greenville, North Carolina, has been awarded a maximum $40,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for dental consumable items. This is a one-year base contract with four one-year option periods. Maximum dollar amount is for the life of the contract, including options. This was a competitive acquisition with 25 offers received. Location of performance is North Carolina, with a Dec. 10, 2023, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2019 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DE-19-D-0001). Goodyear Tire and Rubber Co., Akron, Ohio, has been awarded a maximum $31,242,109 firm-fixed-price, indefinite-quantity, requirements contract to provide tire support for the global tires program. This was a competitive acquisition with seven responses received. This is a three-year contract with no option periods. Location of performance is Ohio, with a Dec. 10, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7L1-19-D-0005). NAVY Sikorsky Aircraft Corp., a Lockheed Martin Co., Stratford, Connecticut, is awarded $38,170,404 for cost-plus-fixed-fee delivery order N0001919F2503, against a previously issued basic ordering agreement (N00019-19-G-0029). This delivery order provides for the development and delivery of a provisioning parts database of technical information to include 2D drawings that support all organizational, intermediate and depot levels in support of initial operational capability for the CH-53K program. Work will be performed in Stratford, Connecticut, and is expected to be completed in November 2023. Fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $8,600,000, will be obligated at time of award, none of which will expire at the end of the fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. General Dynamics Electric Boat, Groton, Connecticut, is awarded a $24,770,301 cost-plus-fixed-fee modification to previously-awarded contract N00024-18-C-2101, to exercise an option for engineering and technical design effort to support research and development concept formulation of undersea technology for current and future submarine platforms. This contract procures advanced submarine research and development, including studies to support manufacturability, maintainability, producibility, electronic obsolescence, reliability, manning, survivability, hull integrity, performance, structural, weight/margin, stability, arrangements, main and auxiliary machinery systems, fluid systems, acoustics, non-acoustics, hydrodynamics, ship control, logistics, human factors, materials, stowage, submarine safety, automation and affordability. Work will be performed in Groton, Connecticut (99 percent); and Newport, Rhode Island (1 percent), and is expected to be completed by October 2019. Fiscal 2019 research, development, test and evaluation (Navy) funding in the amount of $1,310,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Lockheed Martin, Mission Systems and Training, Baltimore, Maryland, is awarded $16,158,990 for cost-plus-award-fee order N6278619F0001, against previously awarded basic ordering agreement (N00024-15-G-2303), to provide engineering and management services for LCS-13 post shakedown availability. Lockheed Martin will provide engineering and management services in support of 65,000 man-hours level of effort, and to provide the work specification, pre-fabrication, and material. Work will be performed in Baltimore, Maryland (33 percent); New York, New York (60 percent); and Marinette, Wisconsin (7 percent), and is expected to be completed by February 2020. Fiscal 2013 and fiscal 2019 shipbuilding and conversion (Navy) funding in the amount of $15,087,040 will be obligated at time of award and will not expire at the end at the end of the current fiscal year. The Supervisor of Shipbuilding, Conversion, and Repair, Bath, Maine, is the contracting activity. Bluestone-Ch2m JV ,* Berwyn, Pennsylvania, is awarded a maximum amount $10,000,000 indefinite-delivery/indefinite-quantity architect-engineering contract for professional hazardous material and waste management environmental compliance, and engineering services in the Naval Facilities Engineering Command (NAVFAC) Southeast (SE) area of responsibility (AOR). Initial task order is being awarded at $163,789 to prepare a Resource Conservation and Recovery Act-compliant closure of Building 257 at Naval Air Station, Corpus Christi, Texas. Work for this task order is expected to be completed by December 2019. All work on this contract will be performed at various Navy and Marine Corps installations in the NAVFAC SE AOR. The term of the contract is not to exceed 60 months with an expected completion date of December 2023. Fiscal 2018 military construction (Navy) contract funds in the amount of $163,789 are obligated on this award and will expire at the end of the 2021 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 seven offers received. Naval Facilities Engineering Command, Jacksonville, Florida, is the contracting activity (N69450-19-D-0105). ARMY World Wide Technology, Maryland Heights, Missouri, was awarded a $26,232,882 modification (P00003), to contract W15QKN-18-C-0108, for Army End Point Management Solutions-as-a-Service. Work will be performed in Maryland Heights, Missouri, with an estimated completion date of Dec. 26, 2019. Fiscal 2019 operations and maintenance, Army funds in the amount of $26,232,882, were obligated at the time of the award. U.S. Army Contracting Command, New Jersey, is the contracting activity. Rockwell Collins Inc., Cedar Rapids, Iowa, was awarded a $15,123,120 firm-fixed-price contract for small mission computer hardware and software. One bids was solicited with one bid received. Work will be performed in Cedar Rapids, Iowa, with an estimated completion date of July 11, 2021. Fiscal 2017 and 2018 other procurement, Army funds in the amount of $15,123,120 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911QY-19-C-0014). Raytheon Lockheed Martin Javelin JV, Tucson, Arizona, was awarded a $12,055,715 cost contract for Javelin engineering services. Bids were solicited via the internet with one received. Work will be performed in Tucson, Arizona, with an estimated completion date of Oct. 30, 2019. Fiscal 2018 other procurement, Army funds in the amount of $12,055,715, were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-19-C-0038). The Protective Group, A Point Blank Co.,* Miami Lakes, Florida, was awarded an $11,924,240 firm-fixed-price contract for the procurement of enhanced ballistic armor protection system kits. One bid was solicited with one bid received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 10, 2022. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-19-D-0013). Construction Co. Inc.,* Dayton, Ohio, was awarded a $9,429,000 firm-fixed-price contract for design and interior renovation and repair (Building 20) at Wright-Patterson Air Force Base, Ohio. Bids were solicited with three received. Work will be performed in Dayton, Ohio, with an estimated completion date of Aug. 24, 2020. Fiscal 2018 military construction funds in the amount of $9,429,000, were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-19-C-0007). AIR FORCE The Boeing Co., El Segundo, California, has been awarded a $22,772,840 modification (P00028) to contract FA8819-15-C-0007, to exercise Option Four for Space Based Space Surveillance Block 10 sustainment. This modification provides for the exercise of an option for the sustainment and required development necessary for Air Force operations and maintenance of the Space Based Space Surveillance system and Red Local Area Network. This effort includes systems engineering, operations, operations support, and contractor logistics support. Work will be performed in El Segundo, California; and Colorado Springs, Colorado, and is expected to be completed by June 20, 2022. This award is the result of a sole-source acquisition. Fiscal 2019 operations and maintenance funds in the amount of $14,943,930 are being obligated at the time of award. Space Superiority Systems Directorate, Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1710661/