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Spending rose by nearly 5 percent in 2018 to reach USD1.78 trillion, driven by budget increases in North America and Europe December 18, 2018 03:00 AM Eastern Standard Time LONDON--(BUSINESS WIRE)--Global defence expenditure grew by 4.9 percent in 2018, the fastest growth rate since 2008, according to the annual Jane's Defence Budget report, released today by business information provider IHS Markit (Nasdaq: INFO). Global defence spending grew for the fifth consecutive year to reach a total of USD1.78 trillion in 2018, significantly exceeding the post-Cold War record of USD1.69 trillion in 2010, according to the report. Fueling this global growth was a 5.8 percent boost to NATO spending, which totaled USD54 billion, largely due to higher defence spending in the US. Jane's by IHS Markit forecasts that overall NATO defence expenditure will exceed USD1 trillion in 2019. “Following a challenging period for NATO members in the wake of the global financial crisis, countries have begun to increase defence spending again, in response to emerging threats,” said Fenella McGerty, principal analyst, Jane's by IHS Markit. “This has slowed the rebalance in defence expenditure toward emerging markets.” Jane's by IHS Markit projects that global defence spending growth will moderate to a level of around 2 percent per year over the next five years as budget increases in Europe and North America slow and emerging markets again become the key source of growth. “In 2018, we've seen a reversal of recent trends with Western states driving growth,” said Craig Caffrey, principal analyst at Jane's by IHS Markit. “Going forward we still see Asia and the Middle East as the key sources of sustainable increases in defence spending.” NATO members increase spending In 2010, NATO member spending accounted for two thirds of global defence expenditure. As emerging markets expanded and developed economies implemented cuts over the decade, the balance of global defence expenditure shifted dramatically. The NATO share of expenditure steadily declined to just 55 percent in 2017 with non-NATO spending on track to surpass NATO expenditure by the early-2020s. “As 24 of the 29 NATO members increased their defence budget in 2018, the decline in the NATO share of global spending has stalled,” McGerty said. “The recommitment to defence in Western states means the global balance of expenditure between NATO and non-NATO markets is now more likely to shift from the mid-2020s.” Nine NATO members will reach the 2 percent of GDP benchmark for defence expenditure in 2019 – compared to just four members in 2014. These countries are the US, Greece, Estonia, Lithuania, United Kingdom, Poland, France, Latvia and Romania. US continues to invest in modernisation US defence spending increased by USD46 billion in 2018 to reach USD702.5 billion as the Pentagon sought to improve military readiness and bolster missile defence capabilities. The 7 percent boost to the Pentagon's budget represents the largest increase in US defence spending since 2008. “Modernisation accounts will reach USD244.1 billion in FY19 – the highest level of investment funding since the period FY07-10, which experienced the maximum Overseas Contingency Operations and maximum US Department of Defense (US DoD) spending levels,” said Guy Eastman, senior analyst at Jane's. “The funding levels for FY18 and FY19 have enabled the US DoD to start on the road to improved readiness and acquire improved warfighting capabilities.” Eastern European budgets continue to expand, while Germany's 11 percent spending boost will bolster Western Europe's total Six of the ten fastest growing defence budgets in the world in 2018 were situated in Eastern Europe. Defence spending in the region grew by almost 9 percent in 2018 with Poland, Romania and the Ukraine driving increases. Notably, spending on military equipment has more than doubled in the region since the annexation of Crimea in 2014. Western European defence spending increased for the third consecutive year in 2018 to reach USD248 billion – 2.4 percent higher than 2017. In 2019, regional spending should exceed pre-financial crisis levels as growth accelerates to 3.6 percent driven by a major 11 percent increase in the German defence budget. “As fiscal balances have improved, countries are able to respond to a markedly poorer security environment and address the capability gaps that have emerged,” McGerty said. “European defence cooperation is also a driving factor as countries look to bolster domestic capabilities but also partner on new technologies, all of which requires greater investment.” While the outlook for defence spending growth in Europe appears on an upward trend, this hinges on a stable UK defence budget and therefore upon the outcome of Brexit negotiations and the impact on the UK economy. Strong economic conditions in Asia-Pacific drive accelerated growth Growth in Asia-Pacific accelerated to 3.6 percent in 2018 but remains below the average 4.8 percent rate seen over the past decade. Total regional spending reached a record high of USD465 billion in 2018. Despite security concerns, economic growth continues to be the primary driver of defence budget growth in Asia. “Strategic drivers are undoubtedly becoming more important, but trends continue to be dictated by economic and fiscal conditions. Strong underlying economic fundamentals mean that Asia is where we expect the majority of the sustainable long-term growth will come from,” Caffrey said. “From a budgetary perspective, we're still seeing very few indicators that an arms race is underway in Asia.” Saudi surpasses France as fifth largest defence spender Higher oil prices over the course of 2018 contributed to an uptick in growth in the Middle East and North Africa with total spending in the region reaching USD180 billion. Saudi Arabia increased its defence outlay by 7 percent to hit USD56 billion, making the Kingdom the fifth largest spender on defence globally. “The large increase in Saudi Arabia's defence budget drove trends in MENA,” Caffrey said. “With oil prices falling again in the latter part of the year, regional growth is likely to remain relatively conservative in the short term.” Brazil dominates defence spending in Latin America Latin America's defence spending grew by 10.4 percent in 2018, reaching a new high of almost USD62 billion. Brazil's allocation of USD29.9 billion accounted for 48.3 percent of this total. “The recovery in Latin American defence budgets continued this year, but aside from Venezuela, where hyperinflation necessitated massive spending supplements, growth was markedly slower than in 2017,” said Andrew MacDonald, senior analyst at Jane's by IHS Markit. Top 20 defence budgets - 2017 and 2018 (USD billion) Position Country 2017* Position Country 2018* 1 USA 656.7 1 USA 702.5 2 China 191.2 2 China 207.6 3 India 61.2 3 India 62.1 4 UK 57.0 4 UK 58.4 5 France 52.5 5 Saudi Arabia 56.0 6 Saudi Arabia 52.1 6 France 53.6 7 Russia 50.9 7 Russia 51.6 8 Japan 48.3 8 Japan 45.1 9 Germany 43.5 9 Germany 44.5 10 South Korea 38.0 10 South Korea 39.1 11 Australia 32.1 11 Australia 32.0 12 Brazil 28.9 12 Brazil 29.9 13 Italy 26.7 13 Italy 27.2 14 UAE 19.3 14 UAE 21.4 15 Canada 16.5 15 Iran 17.4 16 Israel 16.4 16 Canada 16.1 17 Iran 16.2 17 Israel 16.0 18 Taiwan 14.6 18 Spain 15.3 19 Spain 14.4 19 Taiwan 14.5 20 Pakistan 12.0 20 Turkey 13.0 *Figures in constant 2018 USD billions. The intelligence cutoff for this report is 13 December 2018. About IHS Markit (www.ihsmarkit.com) IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world's leading financial institutions. IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2018 IHS Markit Ltd. All rights reserved. About the Jane's Annual Defence Budgets Report The Jane's Defence Budgets team produces the annual Jane's Defence Budgets Report every December. The report examines and forecasts defence expenditure for 105 countries and captures 99 percent of global defence spending. The Jane's Annual Defence Budgets Report is the world's most comprehensive, forward-looking study of government's defence budgets. Tracking 99 percent of the global defence expenditure from 105 of the world's largest defence budgets, data is compiled from Jane's Defence Budgets online solution platform. It includes five-year forecasts, historical data, budget charting, trend evaluation and in-depth analysis by country. In this study, values are based on constant 2018 US dollars. Contacts Freya Lewis IHS Markit +44 203 159 3255 freya.lewis@ihsmarkit.com Press Team +1 303 858 6417 press@ihsmarkit.com https://www.businesswire.com/news/home/20181218005033/en/NATO-Members-Drive-Fastest-Increase-Global-Defence

By: Andrew Chuter LONDON — Britain is to rebuild weapon stockpiles, strengthen Joint Forces Command and earmark cash to rapidly innovate as part of a long-awaited defense modernization review revealed Tuesday by Defence Secretary Gavin Williamson. The defense secretary told Parliament on Dec. 18 that the review, known as the Modernising Defence Programme, would improve the lethality, reach and mass of the armed forces. However, he stopped short on detailing where the cash would coming from and who the long-term winners and losers might be in regard to capabilities and programs as priorities change. Although Williamson told lawmakers he would do “everything within my power to make sure that the U.K. remains a tier-one military power,” his statement disappointed some in the defense sector for its blandness. Labour, the main opposition party in Britian, called the statement “waffle” and said Williamson had done nothing to address a funding shortfall of between £7 billion and £15 billion (U.S. $8.8 billion and $18.9 billion) in equipment budgets over the next 10 years. Some analysts also felt the yearlong review had failed to deliver. “It's an announcement about future announcements, it's the [Ministry of Defence] keeping lots of option open, “ said Jon Louth, the director of defense, industries and society at the Royal United Services Institute think tank in London. “It's all about seeing what can be achieved in next year's governmentwide departmental spending review." Howard Wheeldon, a British-based defense commentator, said the review had “hardly a specific detail of anything that really matters other than some minimal strategic intentions to be found amongst the prose. Perhaps the best that can be said is that while it contains many strategic positives, loads of ambition and intent, at the very least it doesn't contain any new specifics in relation to planned cuts.” Alex Ashbourne-Walmsley of Ashbourne Strategic Consulting said the review was an “anti-climax.” “We have waited all year for this, and what we have is a very thin document. It's hard to fault the aspiration, but making it a reality is a different matter. Where's the money coming from?” she said. Ashbourne-Walmsley and Louth agreed the MoD's success, or otherwise, in securing additional funds when the government's departmental medium-term spending plans are agreed sometime next year is the key. “For the MoD, it's all about next year's departmental spending review. It's unfortunate that the moment the review came on the horizon, that invalidated most of the things that the modernizing defense review could have hoped to achieve,” Ashbourne-Walmsley said. “A lot of these plans are hostage to fortune in terms of the spending review [known as the comprehensive spending review], economic damage from Brexit and even a change of government,” she added. The MoD has secured an additional £1.8 billion in funding this year from the Treasury for spending on items like the nuclear deterrent, anti-submarine warfare and cipher capabilities, but the department still has considerable work to do to balance the books on a total budget slated to top £39 billion next year. The National Audit Office, the government's financial watchdog, reckons the MoD is at least £7 billion overcommitted on its 10-year, £186 billion equipment plan. But, the office admits, it could be a lot more. Williamson acknowledged the MoD had to create “financial headroom for modernization,” but told Parliament this could be achieved through efficiencies. “Based on our work to date, we expect to achieve over the next decade the very demanding efficiency targets we were set in 2015, including through investment in a program of digital transformation,” he said. Analysts here reckon that's an optimistic target without capability cuts; although there was no mention of any reductions in the statement. “We all know that you cannot [achieve efficiency targets] without taking the knife to something. So what we may be able to deduce or fear is that hidden out there somewhere is a chapter of probable announcements of what might yet be to come,” Wheeldon said. One thing appears: Spending priorities are set to change as the MoD reacts to the growing threat from potential adversaries. That includes rebuilding depleted weapons stockpiles. “To improve the combat effectiveness of our forces, we will re-prioritize the current defense program to increase weapon stockpiles. And we are accelerating work to assure the resilience of our defense systems and capabilities,“ Williamson said. “We will improve the readiness and availability of a range of key defense platforms: major warships, attack submarines, helicopters and a range of ISTAR platforms,” he added, without concrete details. Williamson also said Joint Forces Command capabilities are set to be upgraded. “A major new step will involve an improved Joint Forces Command that will be in a better position so that defense can play a major role in preventing conflict in the future and improve our cyber operations and capabilities across the armed forces, but also across government as well,” he said. “Our adversaries and competitors are accelerating the development of new capabilities and strategies. We must keep pace and conceive of our joint force as consisting of five domains — air, land, sea, cyber and space — rather than the traditional three,” he told lawmakers. The review might have been short on details, but the MoD is pledging to drive the military modernization effort with funding, albeit a small amount, for innovation. Britain already has a small defense innovation fund, which this year has £20 million to put toward projects in areas including unmanned air systems, virtual reality training and enhanced digital communications. The fund will grow to £50 million in the next financial year. New “Spearhead” innovation programs will apply cutting-edge technologies to areas including subsurface threats to submarines; intelligence, surveillance and reconnaissance capabilities; and command and control in the land environment. For now, the MoD is investing £160 million to create a transformation fund, but additional money may be available in the upcoming comprehensive spending review if Williamson can make the case for it. “I will ring-fence £160 million of MoD's budget to create this [transformation] fund available for innovative new military capabilities. I will look to make a further £340 million available as part of the spending review. This fund will be available for new innovative military capabilities, which allows us to stay one step ahead of our adversaries," Williamson argued. https://www.defensenews.com/global/europe/2018/12/18/britain-eyes-a-more-lethal-force-in-newly-revealed-defense-modernization-review

Defence Secretary Gavin Williamson has provided a final update on the Modernising Defence Programme to the House of Commons. In July, I made a statement setting out headline conclusions from six months of work on the Modernising Defence Programme (MDP). Since then, work has continued apace. Firstly, I would like to welcome the extra £1.8 billion of funding for Defence, including the additional £1 billion that was in last month's Budget. Today, I want to provide an update on the MDP, and set out the work that will be ongoing. I have placed a full report on the MDP in the library of the House. First, I should put the MDP into context. The 2015 Strategic Defence and Security Review was the right plan for Defence at that time. The Government put the Defence budget on a firmer footing, increasing throughout the life of the Parliament. Defence is much stronger as a result of that. NATO is growing in strength and the UK is a leader. More allies are meeting the 2 per cent spending guideline, or have developed plans to do so. We are the second largest defence spender in NATO, one of only a small number of allies to spend 2 per cent of our GDP on defence, and invest 20 per cent of that in upgrading equipment. We can be proud of what we have achieved since 2015. But we have to also be vigilant. National security challenges have become more complex, intertwined and dangerous since 2015 and these threats are moving much faster than anticipated. Persistent, aggressive state competition now characterises the international security context. In response to the growing threats the MDP was launched in January. And, in the last year, our Armed Forces have demonstrated their growing capability, engaged globally, and supported the prosperity of the UK. The Royal Navy has increased its mass and points of presence around the world. We have taken steps to forward base the Army, enhancing our global posture. The Royal Air Force has continued to innovate, and has celebrated a proud past its RAF100 years since its creation. Progress has also made in cyber and space, as the changing character of warfare makes both domains increasingly important. We have reinforced the UK's position as a leading voice in NATO and on European security. And, our Armed Forces have led the way for Global Britain, tackling our adversaries abroad to protect our security at home and nurturing enduring relationships with our allies and partners. Through the work over the past year the MDP has identified three broad priorities, supported by the additional £1.8 billion invested in Defence. Firstly, we will mobilise, making more of what we already have to make our current force more lethal and better able to protect our security. The UK already has a world-leading array of capabilities. We will make the most effective use of them. We will improve the readiness and availability of a range of key Defence platforms: major warships, attack submarines, helicopters and a range of ISTAR platforms. We are adjusting our overseas training and deployments to increase our global points of presence, better to support allies and influence adversaries. To improve the combat effectiveness of our Force, we will re-prioritise the current Defence programme to increase weapon stockpiles. And we are accelerating work to assure the resilience of our Defence systems and capabilities. We can mobilise a full spectrum of military, economic and soft power capabilities. And, where necessary and appropriate we will make sure we are able to act independently. We will also enhance efforts with our allies and partners, aligning our plans more closely with them, acting as part of combined formations, developing combined capabilities, and burden-sharing. And we continue to invest in, and grow, our global network of Defence personnel and the education and training we offer in the UK and overseas. Secondly, we will modernise, embracing new technologies to assure our competitive edge Our adversaries and competitors are accelerating the development of new capabilities and strategies. We must keep pace, and conceive of our joint force as consisting of five domains, air, land, sea, cyber and space, rather than the traditional three. We must modernise, targeting priority areas. A major new step will involve improved Joint Forces Command that will be in a better position so that defence can play a major role in preventing conflict in the future and improve our cyber operations and capabilities across the armed forces but also across government as well. This year Defence's Innovation Fund put £20 million towards projects in areas including unmanned air systems, virtual reality training, and enhanced digital communications for the Future Commando Force. The fund will grow to £50 million next financial year, increasing the scope, ambition and value of the projects it can support. We will launch new ‘Spearhead' innovation programmes that will apply cutting-edge technologies to areas including sub-surface threats to our submarines, our intelligence, surveillance and reconnaissance capability, and command and control in the Land Environment as well. And to drive innovation and change through the Department I am launching a Transformation Fund. Next year, I will ring-fence £160 million of MOD's budget to create this fund available for innovative new military capabilities. I will look to make a further £340 million available as part of the Spending Review. This fund will be available for new innovative military capabilities which allows us to stay one step ahead of our adversaries. Together these and other steps will enable the acceleration of our modernisation plans. Thirdly, we will transform, radically changing the way we do business in Defence. We need to improve markedly the way we run Defence. To sustain strategic advantage in a fast-changing world, we must be able and capable of continuous and timely adaptation. We will embrace modern business practices and establish a culture that nurtures transformation and innovation. We also need to create financial headroom for modernisation. Based on our work to date, we expect to achieve over the next decade the very demanding efficiency targets we were set in 2015, including through investment in a programme of digital transformation. We will develop a comprehensive strategy to improve recruitment and retention of talent, better reflecting the expectations of the modern workforce. We will access more effectively the talents of our ‘Whole Force' across all three Services, Regulars, Reserves, Civil Service and industrial partners. Looking ahead, dealing effectively with persistent conflict and competition will increasingly hinge on smarter, better informed long-range strategy. To help achieve these goals we will establish a permanent Net Assessment Unit, as well as a Defence Policy Board of external experts, to bring challenge to Defence policy and to Defence strategy. Our achievements under the MDP have made Defence stronger. The capability investments and policy approaches set out, with the £1.8 billion worth of Defence funding, will help us keep on track to deliver the right UK Defence for the challenging decade ahead. Without a shadow of a doubt, there is more work to be done as we move towards next year's Spending Review. We must sustain this momentum if we are to realise our long-term goals of increasing the lethality, reach and mass of our Armed Forces. I will do everything within my power to make sure that the UK remains a Tier-One military power in the decade ahead, and that we continue to deliver the strong defence and security that has been the hallmark of the government. I commend this statement to the House. The Modernising Defence Programme https://www.gov.uk/government/speeches/modernising-defence-programme-update

Detail of outcome The Defence Secretary launched the Modernising Defence Programme in January 2018 with the aim of further strengthening and modernising defence in response to a more complex and challenging international security situation. This report ‘Mobilising, modernising and transforming defence' describes a set of policy approaches and capability investments that will help to keep us on track to deliver the right UK defence for the coming decade. Supported by the additional £1.8 billion funding announced in the Autumn Budget, defence will: mobilise, making more of what we already have to ensure our armed forces are best placed to protect our security modernise, embracing new technologies and assuring our competitive edge over our adversaries transform, radically changing the way we do business and staying ahead of emerging threats As we move towards the 2019 Spending Review, we must sustain this momentum. The Defence Secretary will continue to work with the Prime Minister, the Chancellor and the National Security Council to explore how these aims should be fulfilled alongside our other national security priorities. https://www.gov.uk/government/consultations/modernising-defence-programme-public-consultation

By: David B. Larter WASHINGTON — The U.S. Navy's top officer released an updated version of his strategy document Monday, an expanded version heavy on goals for specific programs that extend beyond his tenure as chief of naval operations. Almost twice the length of the first edition, Adm. John Richardson's Design for Maintaining Maritime Superiority version 2.0 expands on some of the concepts laid out in 2016, and functions as a to-do list for both the fleet and the Office of the Chief of Naval Operations staff. Here are five takeaways: 1) Adversaries Design 2.0 is still aimed squarely at competing with China and Russia. “China and Russia seek to redefine the norms of the entire international system on terms more favorable to themselves,” the document reads, and goes on to say that the U.S. “competitive advantage has shrunk and, in some areas, is gone all together.” The U.S. Navy must be agile to keep pace with technology and the tactics of adversaries, the document outlines. To do so it must compete in “gray zone” areas as well as when the shooting starts – to compete with China and Russia in scenarios short of war as well as in direct combat, Richardson writes. “Our adversaries can operate at different levels of intensity in different domains and the same time,” the document reads. 2) To-do list The middle of the document greatly expands on the CNO's “lines of effort,” or areas of focus. Under “Strengthening Naval Power,” CNO lists a number of strategic goals – including standing up the new Norfolk-based 2nd Fleet, which will control ships, submarines and aircraft based out of Norfolk; developing new concepts of operations that focus on fighting as a more spread-out force able to cover more territory through networking sensors; and continuing to apply the lessons learned from the two fatal guided-missile destroyer accidents in 2017. The document outlines award date goals for contracts to major programs, from the future frigate (2020) and Large Unmanned Surface Vehicle (2023). It identifies the requirement for the replacement to the F/A-18 Super Hornet and E/A-18G Growler by the end of 2019 – a program known as Next Generation Air Dominance – to field by 2030. Other initiatives include integrating more artificial intelligence and machine learning into warfare systems, as well as 3D printing for replacement parts. The document also establishes goals for personnel including making it easier for sailors to choose and negotiate orders and access their records on their smart phones. 3) New stuff The document calls for a new three-star command inside OPNAV that is linked to a related effort to transform the Naval War College in Rhode Island and the Naval Post-Graduate School in Monterey, California. Naval War College, combined with Naval Warfare Development Command, will support Development Group East, which will workshop and develop new concepts based on the new technologies entering the fleet. On the West Coast, Development Group West will be supported by Space and Naval Warfare Systems Command the Post-Graduate School and will serve as a “center of excellence” for capabilities development. The three-star inside OPNAV will be the coordinator for these new constructs, tasked with overseeing the Navy's “education, experimentation, exercise, and analytic efforts.” The document also calls for the development and fielding of an offensive hypersonic weapon by 2025, a move to counter China and Russia's moves with similar systems. It also references a new “large-scale exercise” planned for 2020, although details are sparse. 4) Logistics The new design puts an emphasis on what has become a glaring shortfall of the U.S. military, its logistics. “We will aim to act as early as possible to de-escalate any crisis on our terms and be ready for the next move,” the document reads. “This will require we sustain the fight with the logistics capabilities needed to refuel, rearm, resupply and, repair our operational forces” Later the document calls for the Navy to “posture logistics capability ashore and at sea in ways that allow the fleet to operate globally, at a pace that can be sustained over time.” 5) Takeaway While the document is detailed, the overall tone shift of Richardson's design from documents released a decade ago is stark, according to James Holmes, a strategy professor at the Naval War College. “The change of tone from the 2007 Maritime Strategy, our first strategy since the 1980s, is stunning,” Holmes said in an email. “The 2007 strategy was a document for a world that might turn competitive or might remain cooperative. The name China appeared nowhere, let alone as a potential foe, while there were a fair number of gauzy generalities and platitudes in there. “You could track the shift in tone from 2007 through the 2015 ‘refresh' of the Maritime Strategy through Design 1.0 in 2016 to this document. Doing so tells you the world has changed around us and we are trying to change with it – or catch up where we've fallen behind.” As for the detailed pieces of the document, they function as a good list of priorities, said Bryan McGrath, a former destroyer skipper turned consultant who worked on the last Maritime Strategy. “This is a solid statement of command intent,” McGrath said. “It is essentially a worklist for his subordinates to guide and prioritize their efforts. It seems to me that any interest to an audience broader than the Navy flag community would be in understanding CNO's priorities.” Military Times reporter Geoff Ziezulewicz contributed to this report. https://www.defensenews.com/naval/2018/12/17/top-us-navy-officer-releases-updated-strategy-document-five-takeaways/

MISSILE DEFENSE AGENCY Lockheed Martin Corp., Moorestown, New Jersey, is being awarded a $585,206,351 fixed-price incentive delivery order for the Homeland Defense Radar - Hawaii (HDR-H). The contractor will design, develop, and deliver the HDR-H radar providing autonomous acquisition and persistent precision tracking and discrimination to optimize the defensive capability of the Ballistic Missile Defense System (BMDS) and counter evolving threats. This award is the result of a competitively awarded acquisition in which one offer was received. Fiscal 2018 and 2019 research development test and evaluation funds in the amount of $51,389,757 are being obligated at time of award. The work will be performed in Moorestown, New Jersey; and Oahu, Hawaii. The exact location in Oahu, Hawaii, will be determined at the conclusion of the ongoing site selection and National Environmental Policy Act processes. The period of performance is from Dec. 18, 2018, through Dec. 17, 2023. The Missile Defense Agency, Redstone Arsenal, Alabama, is the contracting activity (HQ0147-19-F-0018). DEFENSE INFORMATION SYSTEMS AGENCY Hewlett Packard Enterprise, Reston, Virginia, was awarded a competitive, single award indefinite-delivery/indefinite–quantity, firm-fixed-price contract for X86 processor capacity services. The total lifecycle amount of the contract is $323,921,060. The minimum guarantee for this effort is $770,000, $675,000 of which is being met by the first delivery order under HC1084-19-F-0001, and is funded by fiscal 2019 research, development, test and evaluation funds. Performance will be at current Defense Information Systems Agency (DISA) data centers or future DISA centers in the continental U.S. (CONUS), DISA outside CONUS (OCONUS) data centers, and other DISA or DISA-approved locations worldwide in which DISA may acquire an operational responsibility. Proposals were solicited via the Federal Business Opportunities websites, and six proposals were received from the proposals solicited. The period of performance is for a base of five years beginning Dec. 19, 2018, and five one-year periods through Dec. 18, 2028. The Defense Information Technology Contracting Organization, Scott AFB, Illinois, is the contracting activity (HC1084-19-D-0002). NAVY General Electric Co., Lynn, Massachusetts, is awarded $290,834,776 for modification P00014 to a previously awarded firm-fixed-price contract (N00019-17-C-0047) for the procurement of eight F414-GE-400 install engines for the Navy. In addition, this modification provides for the procurement of 56 F414-GE-400-1A install engines; four F414-GE-400 spare engines; two spare engine containers and 12 spare engine modules for the government of Kuwait. These engines power the F/A-18E/F Super Hornet aircraft. Work will be performed in Lynn, Massachusetts (59 percent); Hooksett, New Hampshire (18 percent); Rutland, Vermont (12 percent); and Madison, Kentucky (11 percent), and is expected to be completed in December 2020. Fiscal 2018 aircraft procurement (Navy); and foreign military sales funds in the amount $290,834,776 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This modification combines purchases for the. Navy ($33,261,704; 11 percent); and the government of Kuwait ($257,573,072; 89 percent) under the Foreign Military Sales program. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. The Boeing Co., St. Louis, Missouri, is awarded a $91,720,000 ceiling-priced, cost-plus-fixed-fee, firm-fixed-price contract for the procurement of new aircrew and maintenance training systems, as well as upgrades and modifications to the existing F/A-18E/F and EA-18G aircrew and maintenance training systems to ensure the systems are representative of fleet aircraft and systems and interface with the F-35 Joint Strike Fighter Joint Simulation Environment. Work will be performed in St. Louis, Missouri, and is expected to be completed in December 2023. Fiscal 2017 aircraft procurement (Air Force); fiscal 2019 aircraft procurement (Navy); and 2018 research, development, test and evaluation funds in the amount of $32,260,000 will be obligated at time of award, $32,097,000 of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to Federal Acquisition Regulation 6.302-1. This contract combines purchase for the Navy ($90,836,000; 99.03 percent); and the Air Force ($884,000; 0.97 percent). The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity (N6134019D0906). Raytheon Co., McKinney, Texas, is awarded $65,648,632 for firm-fixed-price delivery order N00383-19-F-HC02 under a previously awarded basic ordering agreement (N00383-15-G-005D) for the repair of the Advanced Targeting Forward Looking Infrared system used in support of the F/A-18 aircraft. Work will be performed in McKinney, Texas (77 percent); Jacksonville, Florida (20 percent); and El Segundo, California (3 percent). Work is expected to be completed by December 2020. Working capital funds (Navy) in the full amount of $65,648,632 will be obligated to fund the delivery order and funds will not expire at the end of the current fiscal year. One source was solicited for this non-competitive requirement pursuant to the authority set forth in 10 U.S. Code 2304 (c)(1), in accordance with Federal Acquisition Regulation 6.302-1, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity. BAE Systems Information and Electronic Systems Integration Inc., Nashua, New Hampshire, is awarded a $32,396,621 five-year, firm-fixed-price requirements, long-term contract for the repair of 103 items of the ALQ-126B electronic countermeasures systems and two items of the ALE-55 radio frequency countermeasure system to support countermeasures for various aircraft. Work will be performed in Nashua, New Hampshire (47 percent); Jacksonville, Florida (48 percent); and Crane, Indiana (5 percent). Work is expected to be completed by December 2023. Working capital funds (Navy) will be obligated as individual task orders are issued and funds will not expire at the end of the current fiscal year. This contract was a sole-source pursuant to the authority set forth in 10 U.S. Code 2304(C)(1) and Federal Acquisition Regulation 6.302-1, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-19-D-UA01). Rockwell Collins Inc., Cedar Rapids, Iowa, is awarded $14,915,670 for modification P00004 to a previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contract (N00421-18-D-0004) to exercise additional contract line item numbers under Option Year I for the manufacture and delivery of additional quantities of the AN/ARC-210 family of radio equipment in support of Navy, Air Force, Marine Corps, and Foreign Military Sales customers. Work will be performed in Cedar Rapids, Iowa, and is expected to be completed in September 2021. No funds will be obligated at time of award. Funds will be obligated on individual orders as they are issued. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. Raytheon Missile Systems, Tucson, Arizona, is awarded $11,740,000 for not-to-exceed delivery order N0001919F2610 against a previously issued basic ordering agreement (N00019-15-G-0003) for the Navy and Air Force. This order provides for non-recurring engineering for the redesign of the Control Actuation System electronic controller and the requalification of the dimeryl diisocyanate utilized in the AIM-9X Sidewinder Block I/II/II+ missiles. Work will be performed in Santa Clarita, California (48 percent); Rocket Center, West Virginia (33 percent); and Tucson, Arizona (19 percent), and is expected to be completed in March 2021. Fiscal 2019 weapons procurement (Navy); and fiscal 2019 missile procurement (Air Force) funds in the amount of $3,471,918 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This order combines purchases for the Navy ($5,870,000; 50 percent); and the Air Force ($5,870,000; 50 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. L3 Adaptive Methods, Centreville, Virginia, is awarded a $7,674,780 cost-plus-fixed-fee modification to a previously awarded contract (N00024-15-C-5220) to exercise an option for the accomplishment of services for the Undersea Warfare and Surface Warfare command and control systems. The services include systems engineering, program management, software development, risk management, prototype development, information assurance, training, and integrated logistics support. Work will be performed in Centreville, Virginia (50 percent); and Keyport, Washington (50 percent), and is expected to be completed by December 2019. Fiscal 2019 research, development, test, and evaluation (Navy); and fiscal 2019 operations and maintenance (Navy) funding in the amount of $4,279,000 will be obligated at time of award and funding in the amount of $420,000 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. AIR FORCE Raytheon Missile Systems, Tucson, Arizona, has been awarded a $141,447,329 firm-fixed-price contract (FA8672-19-C-0010) to exercise an option to previously awarded contract FA8672-10-C-0002 for Small Diameter Bomb (SDB) II. The contractor will provide low-rate initial production for 1,260 SDB II Lot Five munitions, 389 single-weapon containers, 344 dual-weapon containers, 20 production reliability incentive demonstration effort captive vehicles, 20 production reliability incentive demonstration effort tests, 36 weapon load crew trainers/conventional munitions maintenance trainers and data. Work will be performed in Tucson, Arizona, and is expected to be completed by June 30, 2022. This award is the result of a sole-source acquisition resulting from follow-on to competition. Fiscal 2019 missile procurement funds in the amount of $141,447,329 are being obligated at the time of award. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity. Lockheed Martin Space, Sunnyvale, California, has been awarded a $7,394,373 modification (P00063) to contract FA808-12-C-0010 for Advanced Extremely High Frequency satellite vehicles 5/6. The contract modification is for Space Vehicle 5 Liquid Apogee Engine (LAE) 4-corners testing request for equitable adjustment. Work for this effort is complete. The testing of the LAE engine took place in Tokyo, Japan, the removal and replacement took place in Sunnyvale, California. Fiscal 2017 missile procurement funds will fund the contract. Total cumulative face value of the contract is $2,032,081,111. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. ARMY M.A. Mortenson Co., doing business as Mortenson Construction, Minneapolis, Minnesota, was awarded a $36,298,000 firm-fixed-price contract to design and construct a 61,515 square foot administrative facility including administrative spaces, classrooms, and secure spaces. Bids were solicited via the internet with six received. Work will be performed in Buckley Air Force Base, Colorado, with an estimated completion date of March 10, 2021. Fiscal 2018 military construction funds in the amount of $36,298,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-19-C-0006). DEFENSE LOGISTICS AGENCY Michelin North America Inc., Greenville, South Carolina, has been awarded a maximum $26,289,870 fixed-price, indefinite-delivery, requirements contract for aircraft tires supporting the Global Tire Program. This is a three-year contract with no option periods. Location of performance is South Carolina, with a Dec. 17, 2021, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2019 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7LX-19-D-0046). Goodyear Tire and Rubber Co., Akron, Ohio, has been awarded a maximum $24,047,839 fixed-price, indefinite-delivery, requirements contract for aircraft tires supporting the Global Tire Program. This was a competitive acquisition with two offers received. This is a three-year contract with no option periods. Location of performance is Ohio, with a Dec. 17, 2021, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2019 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7LX-19-D-0045). The Boeing Co., St. Louis, Missouri, has been awarded a maximum $17,040,935 firm-fixed-price delivery order (SPRPA1-18-F-0003) against a five-year basic ordering agreement (SPRPA1-14-D-002U) for F/A-18 depot level repairable parts support. 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 four-year, four-month contract with no option periods. Locations of performance are Missouri, California, Florida and North Carolina, with an April 18, 2023, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2019 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. Raytheon Co., McKinney, Texas, has been awarded a maximum $9,549,053 firm-fixed-price contract for 128 display control modules for the Abrams tank. 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 two-year base contract with one six-month option period. The option is being exercised at the time of award. Location of performance is Texas, with an April 30, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-19-C-0070). Tennier Industries Inc.,* Delray Beach, Florida, has been awarded a $9,309,281 modification (P00007) to a one-year contract (SPE1C1-17-D-1090) with two one-year option periods for various parkas. This is a fixed-price contract. Locations of performance are Florida and Tennessee, with a Dec. 19, 2019, performance completion date. Using military services are Marine Corps and Air Force. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY General Dynamics Mission Systems, Inc., San Antonio, Texas, has been awarded a $24,916,847 modification (P00036) to previously awarded contract HR0011-16-C-0001 for classified information technology services. The modification brings the total cumulative face value of the contract to $105,016,388 from $80,099,541. Work will be performed in Arlington, Virginia, with an expected completion date of February 2020. Fiscal 2018 and 2019 research and development funds in the amount of $20,949,939 are being obligated at time of award. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1717218/source/GovDelivery/

By: Leo Shane III WASHINGTON — Analysts from the Congressional Budget Office say the government could trim hundreds of billions from the federal deficit by enacting a host of already discussed military and veterans program reforms. The problem is that those reforms include some of the most controversial and politically unpopular policies of the last few years, things like limiting military pay raises, ending a host of military equipment purchases, and cutting back on veterans benefits. The document released last week — CBO's annual “options for reducing the deficit” report — lists more than 120 ideas to reduce federal spending or boost federal revenues over the next 10 years. Authors said the goal is to “reflect a range of possibilities” of moves that lawmakers could make in dealing with government debt and escalating federal programming costs. Twenty of the proposals would affect the departments of Defense and Veterans Affairs, including a plan to cut the Pentagon budget by 10 percent ($591 billion in reduced budget authority over the next decade). That dramatic cut would “require DOD to decrease the size of its forces, slow the rate at which it modernizes weapon systems, or do both,” which in turn would prompt a host of complaints from military leaders and defense lawmakers. Still, the size of the savings involved show why the ideas continue to attract debate on Capitol Hill each year, even with the significant disruptions they may bring. Here is a look at some of the other potential VA and Pentagon moves: Limit pay raises for troops ($18 billion in savings over 10 years) The CBO idea would give troops an annual raise of 0.5 percent less than the expected growth in civilian salaries. Service members would still see annual raises, but opponents of the idea argue that those increases wouldn't keep up with the cost of living for military families. President Barack Obama's Pentagon capped the military raises at this level for three years during his presidency, leading to criticism from advocates that he had created a new gap in military and civilian wages. President Donald Trump suggested a 0.3 percent reduction in the expected raise formula in his first budget, but saw the proposal rejected by Congress. Narrow eligibility for VA disability benefits ($33 billion over 10 years) The CBO plan would drop a host of conditions not directly related to military service — illnesses like arteriosclerotic heart disease, hemorrhoids and multiple sclerosis — from the list of claims eligible for disability benefits. More than 750,000 veterans' checks would be affected by the move. Any such trims in benefits have prompted harsh attacks from veterans groups, who have accused supporters of breaking faith with men and women who were promised lifelong assistance for their military service. Cancel new F-35 purchases ($16 billion over 10 years), retire the F-22 fleet ($30 billion over 10 years) and delay development of the B-21 bomber until after 2028 ($45 billion over 10 years) All three ideas would require Air Force officials to continue using aging aircraft, a concern for Pentagon planners who have seen a spike in aviation accidents in recent years. The CBO report acknowledged that a disadvantage of the idea would be making the military “less flexible against advanced enemy air defense systems” but said the current mix of aircraft types already in use by the services would mitigate some of those concerns. Stop building Ford-class aircraft carriers ($18 billion over 10 years) Under this option, the Navy would stop building new aircraft carriers after the USS Enterprise, scheduled to be completed in 2027. A carrier set for the start of construction in 2023 would be scrapped. The CBO report argues that even with the move, the Navy would still have 11 active carriers until 2036 given its current fleet size. However, defense lawmakers have long argued against any delays in ship building schedules, given the long wait for construction and fielding of new vessels. End VA's Individual Unemployability program for retirement-age veterans ($48 billion over 10 years) Trump also suggested this idea in his first VA budget, only to have lawmakers and veterans groups soundly reject it. The IU program provides extra benefits to veterans unable to work because of disabilities, even if they don't have a 100 percent disabled rating. Supporters have argued that money should stop once Social Security payouts begin. Opponents of the idea could leave as many as 235,000 veterans in dire financial need. Reduce military housing allowances to 80 percent of rent costs ($15 billion over 10 years) Under this plan, BAH payments wouldn't change for troops until they move, but it would slowly increase their out-of-pocket costs for housing. The change would also create savings for the VA, since post-9/11 GI Bill housing stipends are tied to the military housing formula. Similar BAH reform proposals on Capitol Hill have met fierce opposition in recent years. Advocates argue that since military members have little say in their next duty assignment, they shouldn't have to shoulder the costs of unexpected moves and expensive housing costs. Replace thousands of troops with civilian workers ($17 billion over 10 years) The CBO idea calls for reducing military end strength by 80,000 over four years and replacing them with 64,000 civilian employees. The work would not be directly related to warfighting, and the health care and ancillary costs of non-military workers would create significant savings compared to service members' benefits. But Congress has worked to increase the military's end strength in recent years, saying it brings more readiness and flexibility to the overall force. An end-strength cut of that size would represent a major political backtrack for many elected officials. https://www.militarytimes.com/news/pentagon-congress/2018/12/17/analysts-find-hundreds-of-billions-in-military-savings-by-capping-military-pay-scrapping-aircraft-slashing-veterans-benefits

By: Sebastian Sprenger RIO DE JANEIRO – The Brazilian navy launched its first domestically produced attack submarine on Friday, a move that French boat designer Naval Group hopes will lead to additional sales in the region. The new vessel, named the Riachuelo, is a copy of Naval Group's Scorpene-class submarine, though slightly bigger, at 1,870 tons, to enable more crew and longer range. The submarine program's objective is protecting the vast resource-rich waters all along the country's coastline, dubbed the Blue Amazon, outgoing Brazilian President Michel Temer told an audience at the launch ceremony at Itaguai naval base outside Rio de Janeiro. Defense News attended the launch and accepted airfare and accommodations from Naval Group. The Riachuelo, considered roughly 80 percent complete at this point, is the first product of the Brazilian navy's $8.9 billion Prosub program. She is scheduled to begin sea trials next summer. Three identical, diesel-propelled boats are slated to follow by 2023, based on a technology-transfer contract with the French shipbuilder. A joint venture between Naval Group and local construction conglomerate Odebrecht, named ICN, assembles the boats at the new Itaguai submarine shipyard built for the program. The real prize for the Brazilian navy, however, will only come afterwards. Beginning in the mid-2020s, the country's military wants to start building what Naval Group chief HervéGuillou calls the “ultimate ambition” – a program of nuclear-powered submarines. Design work for the first nuclear submarine is already underway, with the French shipbuilder providing “assistance,” as a company brochure puts it, and the Brazilian navy in a more prominent role. The sea service here will manage all aspects of the power plant development, for example. “Brazil is absolutely critical for Naval Group and other European players to be present here,” Guillou told reporters at Naval Group's Rio de Janeiro office. That's because European countries, even those spending two percent of GDP on defense, a NATO-wide objective, are unable to match the growth rate of South America's expected military spending, he said. The foray into Brazil and other emerging markets offers the opportunity for “critical mass” to help bridge dips in demand at home, according to Guillou. The French shipbuilder already has its eyes on another target, Poland, which the CEO said he wants to similarly develop into a submarine hub for regional navies. European rival shipyards Saab and Thyssenkrupp Marine Systems are also in the running for that country's program, however, each with local work-share ambitions of their own. Friday's launch ceremony ended with Temer and his successor, far-right President-elect Jair Bolsonaro, jointly pressing a large red button initiating the machinery for lowering the Riachuelo into the water. “Brazil has a vocation for peace and is building its submarine not to threaten anyone or unsettle the calm of international waters,” Temer was quoted as saying in a local Reuters report. “Brazil is building submarines because a nation with more than 7,000 kilometers of coastline cannot do without tools to defend its sovereignty and it marine riches,” he said. Bolsonaro had no speaking part in the ceremony. https://www.defensenews.com/global/europe/2018/12/17/frances-naval-group-eyes-brazil-as-hub-for-its-regional-submarine-business/

AIR FORCE Northrop Grumman Systems Corp., Rolling Meadows, Illinois, has been awarded a $3,600,000,000 indefinite-delivery/indefinite-quantity contract for Large Aircraft Infrared Counter Measures (LAIRCM) equipment and support. This contract provides for LAIRCM line replaceable units, support equipment, logistics support related activities, systems and sustaining engineering, program management, and other efforts necessary supporting efforts specified in each task/delivery order. Work will be performed in Rolling Meadows, Illinois, and is expected to be completed by December 2025. No funds are being obligated at the time of award. This contract involves numerous foreign military sales requirements and is the result of a sole-source acquisition. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8638-19-D-0001). L-3 Technologies, Greenville, Texas, has been awarded an $8,600,988 firm-fixed-price contract modification to previously awarded contract FA8620-16-G-3027/FA8620-18-F-4816 for management support services. The contract modification provides for the exercise of an option for additional services being produced under the basic contract. Work will be performed in Greenville, Texas, and is expected to be completed by Dec. 31, 2019. This contract involves 100 percent Foreign Military Sales and is the result of a sole-source acquisition. Foreign Military Sales funds in the amount of $8,600,988 are being obligated at the time of award. The 645th Aeronautical Systems Group, Wright-Patterson Air Force Base, Ohio, is the contracting activity. CORRECTION: The contract announced on Dec. 14, 2018, to Peraton Inc., Herndon, Virginia (FA8750-19-F-0003) for Xdomain technology through research, evolution, enhancement, maintenance, and support software and report, was actually awarded today, Dec. 17, 2018. All other information in the announcement is correct. ARMY BAE Systems Land & Armaments LP, Sterling Heights, Michigan, was awarded a $375,932,453 hybrid (firm-fixed-price and fixed-price-incentive) contract for Mobile Protected Firepower middle tier acquisition and rapid prototyping effort with low-rate initial production options. Bids were solicited via the internet with three received. Work will be performed in Sterling Heights, Michigan, with an estimated completion date of Oct. 15, 2025. Fiscal 2019 research, development, test and evaluation funds in the amount of $175,974,048 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-19-C-0035). General Dynamics Land Systems Inc., Sterling Heights, Michigan, was awarded a $335,043,086 hybrid (firm-fixed-price and fixed-price-incentive) contract for Mobile Protected Firepower middle tier acquisition and rapid prototyping effort with low-rate initial production options. Bids were solicited via the internet with three received. Work will be performed in Sterling Heights, Michigan, with an estimated completion date of Oct. 15, 2025. Fiscal 2018 and 2019 research, development, test and evaluation funds in the amount of $175,011,179 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-19-C-0036). Lockheed Martin Corp., Orlando, Florida, was awarded a $91,250,000 modification (P00069) to contract W31P4Q-15-C-0102 for procurement of Joint-Air-to-Ground missiles under the initial phases of the Low-rate Initial Production 3. Work will be performed in Orlando, Florida, with an estimated completion date of Feb. 28, 2022. Fiscal 2017, and 2018 other procurement Army funds in the amount of $91,250,000 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Foster-Miller Inc., doing business as QinetiQ North America, Waltham, Massachusetts, was awarded a $90,000,000 firm-fixed-price contract for the reset, sustainment, maintenance and recap to support the overall sustainment actions of the Tactical Adaptable Light Ordnance Neutralization family of robotic systems. 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 Dec. 16, 2023. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-19-D-0024). Gilbane Building Co., Providence, Rhode Island, was awarded a $12,651,574 firm-fixed-price contract for modifications to an operational training facility, Marine Corps Air Station, Iwakuni, Japan. Bids were solicited via the internet with one received. Work will be performed in Iwakuni City, Japan, with an estimated completion date of Dec. 3, 2019. Fiscal 2016 and 2017 military construction funds in the amount of $12,651,574 were obligated at the time of the award. U.S. Army Corps of Engineers, Camp Zama, Japan, is the contracting activity (W912HV-19-C-0002). NAVY Lockheed Martin Corp., Owego, New York, is awarded a $92,500,000 cost-plus-fixed-fee contract for technical, management, and process support to maintain, upgrade, and deploy software and systems configurations for all H-60 variants in support of the Navy and the governments of Denmark, Australia, and Saudi Arabia. Work will be performed in Owego, New York, and is expected to be completed in September 2023. Fiscal 2019 operations and maintenance (Navy) funds in the amount of $9,392,660 will be obligated at time of award, all of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to Federal Acquisition Regulation 6.302-1. This contract combines purchases for the Navy ($70,010,000; 75.68 percent); and the governments of Australia ($15,430,000; 16.68 percent); Denmark ($3,530,000; 3.82 percent); and Saudi Arabia ($3,530,000; 3.82 percent), under the Foreign Military Sales program. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-19-D-0005). Huntington Ingalls Inc., Pascagoula, Mississippi, is awarded a $39,395,512 cost-plus-fixed-fee modification to previously awarded contract N0024-16-C-2415 to exercise Option Year 3 for life cycle engineering and support services for the LPD 17 class amphibious transport dock ship program. The services include post-delivery planning and engineering; homeport technical support; class integrated product data environment; data maintenance and equipment management; systems integration and engineering support; LPD 17 class design services; research engineering; obsolescence management; class material readiness; emergent repair provision; training and logistics support; ship alteration development and installation; material management; operating cycle integration; availability planning; and configuration data management. Work will be performed in Pascagoula, Mississippi (96 percent); Norfolk, Virginia (1 percent); San Diego, California (1 percent); Mayport, Florida (1 percent); and Sasebo, Japan (1 percent), and is expected to be complete by December 2019. Fiscal 2012, 2016, 2017, 2019 shipbuilding and conversion (Navy); fiscal 2019 operations and maintenance (Navy); and fiscal 2019 research, development, test, and evaluation (Navy) funds in the amount of $19,057,104 will be obligated at time of award and contract funds in the amount of $18,017,669 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Huntington Ingalls Inc., Pascagoula, Mississippi, is awarded a $28,573,043 cost-plus-fixed-fee modification to previously-awarded contract N00024-17-C-2473 to exercise options for the accomplishment of the industrial post-delivery availability and planning, engineering and management efforts for the post-delivery planning yard services in support of the LHA 7 amphibious assault ship. Work will be performed in Pascagoula, Mississippi, and is expected to be completed by December 2019. Fiscal 2012 shipbuilding and conversion (Navy) funding in the amount of $21,200,000; and fiscal 2018 shipbuilding and conversion (Navy) funding in the amount of $2,355,011 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 Space, Sunnyvale, California is awarded $21,987,176 for cost-plus-fixed-fee modification P00017 under a previously awarded contract (N00030-17-C-0100) to exercise options for Trident II (D5) missile production and deployed system support. The work will be performed in Sunnyvale, California (61.25 percent); Denver, Colorado (36.04 percent); and Titusville, Florida (2.71 percent), and is expected to be completed Dec. 30, 2019. Fiscal 2019 research, development, test, and evaluation (Navy) funds in the amount of $21,987,176 are obligated on this award, none of which will expire at the end of the current fiscal year. Strategic Systems Programs, Washington, District of Columbia, is the contracting activity. B.E. Meyers and Co. Inc.,* Redmond, Washington, is awarded a $10,348,345 delivery order (M67854-19-F-1529 0002) from a previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contract (M67854-14-D-1040) for the purchase of 917 Ocular Interruption Systems. Work will be performed at Redmond, Washington, and is expected to be completed by Aug. 31, 2020. Fiscal 2019 procurement (Marine Corps) funds in the amount of $10,348,345 will be obligated at the time of award and no funds will expire the end of the current fiscal year. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity. Harris Corp., Clifton, New Jersey, is awarded $9,835,000 for firm-fixed-price delivery order modification 000105 against a previously issued basic ordering agreement (N00016-16-G-0003) for production and qualification of ten Digital Receiver/Technique Generator Gen2 shipsets for the ALQ-214A(V)4/5 on-board jammer system in support of Foreign Military Sales (FMS) requirements. Two system spread benches are also being procured and delivered under this modification. Work will be performed in Clifton, New Jersey, and is expected to be completed in April 2020. FMS funds in the amount $9,835,000 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. Raytheon Missile Systems, Tucson, Arizona, is awarded $8,988,458 for modification P00007 to a previously awarded cost-plus-fixed-fee contract (N0001917C0059) for engineering and technical support for the flight test demonstration of an extended range capability in support of the Joint Stand Off Weapon extended range Phase 3b development effort. Work will be performed in Tucson, Arizona, and is expected to be completed in January 2021. Fiscal 2019 research, development, test and evaluation (Strategic Capabilities Office) funds in the amount of $661,621 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. Rockwell Collins Inc., Cedar Rapids, Iowa, is awarded $8,704,807 for delivery order N0001919F0273 against a previously issued firm-fixed-price, cost-plus-fixed-fee, cost basic ordering agreement (N00019-14-G-0021) in support of the E-6B Mercury aircraft. This order provides for non-recurring engineering for the installation of the Digital Red Switch System (DRSS) kits into the Mission Avionics Systems Trainer (MAST), as well as the procurement of six DRSS kits for the aircraft and one for MAST. Work will be performed in Richardson, Texas, and is expected to be completed in September 2022. Fiscal 2018, and 2019 aircraft procurement (Navy) funds in the amount of $8,704,807will 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. Northrop Grumman Corp., Aerospace Systems, Melbourne, Florida, is awarded $7,993,664 for modification P00004 to cost-plus-fixed-price delivery order 0027 previously issued against a basic ordering agreement (N0001915G0026). This modification provides for the procurement of additional organic depot and intermediate level repair publications in support of the E-2D Advanced Hawkeye aircraft, including the structural repair manual and organic depot and intermediate level repair publications. Work will be performed in Melbourne, Florida (79.6 percent); St. Augustine, Florida (11.6 percent); Menlo Park, California (7.3 percent); and Bethpage, New York (1.5 percent), and is expected to be completed in September 2020. Fiscal 2017 aircraft procurement (Navy) funds in the amount of $7,993,664 will be obligated at time of award, all of which will expire at the end of the fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. TKH-ASI LLC,* Kahului, Hawaii, is awarded $7,744,000 for firm-fixed-price task order N6247819F4034 under a previously awarded, multiple award construction contract (N62478-16-D-4016) to repair unaccompanied housing Building 2, Joint Base Pearl Harbor-Hickam, Wahiawa Annex, Hawaii. The work to be performed provides for repair of Station B1 (located in Facility S1104) and interconnecting Station B1 with Station B29. Project work will include replacing old and deteriorated components in Station B1, adding a primary circuit and circuit breaker to Station B29, and installing underground feeder cables to interconnect and consolidate Stations B1 and B29. Work will be performed in Oahu, Hawaii, and is expected to be completed by February 2020. Fiscal 2019 operations and maintenance (Navy) contract funds in the amount of $7,744,000 are obligated on this award and will not expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command, Hawaii, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity. DEFENSE LOGISTICS AGENCY Honeywell International Inc., Phoenix, Arizona, has been awarded an $11,499,928 firm-fixed-price delivery order (SPRPA1-19-F-KQ1B) against a five-year basic ordering agreement (SPE4A1-17-G-0017) with no option periods for 11 auxiliary power units for the P-8 aircraft. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulations 6.302-1. This is an 11-month contract with no option periods. Location of performance is Arizona, with a Nov. 11, 2019, performance completion date. Using customers are Navy and the United Kingdom. Type of appropriation is fiscal 2019, Navy working capital funds and Foreign Military Sales funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1716020/source/GovDelivery/