Nouvelles

By: Jill Aitoro If you ask Chris Kubasik, CEO of L3 Technologies, the company's pending merger with Harris Corp. should not come as a surprise to anyone. Such a move made sense on paper for years, even if the timing was never quite right. Now it is: Both companies are on an upswing, and both companies are led by individuals with an inclination to get it done. The result will be a deal — the largest defense merger in history, if you look at market capitalization — to create the seventh largest defense prime in the world. Defense News spoke to Kubasik and Bill Brown, the CEO of Harris, to find out more about the newly rechristened L3 Harris Technologies. Chris, you called this an acquisition that many felt made sense. So what were the challenges to making it happen, and why is now the perfect time? Chris Kubasik: I think in reality, people thought for years that this combination made sense. It was due to Bill and I working hard that we actually got it done. I think that now is the perfect time because of the customer's needs and demands for innovation and solution. Like I said, with the upswing in both companies, and both companies being strong, I think that gives us the opportunity to put this together, generate the cash and the synergies and position us for long-term value creation for our shareholders. The challenges of all these acquisitions [are so often] culture and leadership. Here, the cultures are aligned. Bill and I are completely aligned. We've known each other for years. We have a clear understanding of roles and responsibilities. We're going to jointly chair the integration committee to make sure we get the best of the best — best people, best processes, best system. I'm sure I've never been more excited in my career than I am today, so it's going to be a lot of fun. The stakeholders are all going to benefit. Bill, how much was the 2015 acquisition of Exelis a building block toward this deal? Not necessarily a merger with L3 specifically, but really big merger that would really transform the company? Did you see this coming? Bill Brown: I've been here for seven years, so we really started early on in developing a culture of operational excellence. I think that has been pretty well embedded within the company. We've made some good progress here. We've leveraged a lot of those tools, effectively integrating Exelis. We reached the cost savings targets we thought we would deliver and we delivered it a year early. So I think we built a little bit of a muscle on how to do an integration. I think this is a great potential combination for us. It does position us well within the defense industrial based hierarchy. We'll generate a lot of savings. But more importantly, the portfolio capabilities is going to allow us to do different things, to provide different capabilities to the war fighter and different things that are clearly laid out in the National Defense Strategy. So as I look at this, it's the right transaction. It's the right time. It's the right environment to do this. A lot of this comes down to the leaders of the organization, and Chris and I [are] completely aligned in what to do and how to create value. So much of this also involves combining and integrating in a smart and efficient way, so should we expect any more divestitures? I know L3 just did a couple recently. Any more to come? Brown: I think if you look at what L3 has done recently, and what we've done over the last five or six years, we both have taken a critical eye to the business portfolio we had. If there's assets we think that are better owned by somebody other than [ourselves], we take a dispassionate view of that. And we transition those assets to a different owner. I think Chris and I will take a look at that going forward. I think there will be [divestitures], given the diversity of the business mix we'll have together. It does create the optionality for additional portfolio shaping. Nothing to mention today, but something we'll be taking a close look at over the coming months and years. Okay, so the couple of years before the transition, in terms of leadership — should I figure that those two years are going to be spent really establishing the integrated company? Kubasik: Absolutely. The top two focuses of Bill and I and the team will be the integration, and continuing to execute on our existing programs and commitments. That is first and foremost. We're going to generate a lot of cash. It's going to take several hundred million dollars of investments to integrate these companies. Then the rest of the cash we're going to maintain a competitive dividend, consistent with what we've done. We're very similar in that regard. In the first year, we're going to use the excess cash to repurchase shares. So the likelihood of acquisition from those first two years are very low. As Bill said, we'll look at the portfolio. We've clearly spent a lot of time together, but the next few months we'll get into it more and more and see what makes sense. The way I sum it up is, the merger creates better benefits and growth opportunities than either company could have achieved alone. I know both companies are incredibly strong in terms of C4ISR and a lot of what you might call the future warfare capabilities. What kind of growth do you anticipate in that area? Brown: When I look at the next several years, you're hitting on the right spot. When you look at C4ISR, it's a broad category. When you look at the pieces underneath that, I think Chris and I, our companies, bring great capabilities [that are] complementary. When you think about what we do at Harris, we've got a very strong position in tactical radios — global leadership, U.S. leadership. A lot of it's ground, starting the movements to airborne tier, starting to provide systems. Chris's business is very strong in avionics. It's very strong in data links, very strong in satcom, very strong between the two of us in optical capability. When you look at all of that broad way of getting better ISR information, I think we bring the right capabilities to the fight. Kubasik: We'll be spending about 4% of our revenues on R&D, which I think is aggressive. And we talk about the customers, just to clarify — we have two sets. We have the usual industry partners, who I think will benefit from this combination, the same way that our end-user DoD customer will as well. Are there any programs that you both were competing on, where there's going to need to be some sort management to eliminate conflicts of interest? Brown: Very, very small. It's almost negligible in terms of where we compete head to head. Again, it's a very complimentary set of businesses, so we don't see that as being a big concern. What kind of layoffs are you all anticipating? Brown: We expect half a billion dollars of cost savings, and half of it is going to come from supply chain and facility rationalization — consolidating our mutual footprint. About half of that other half, so 25 percent, is split from corporate and segment overhead reduction in functional efficiencies, shared services — things that we've done and Chris is now driving at all three. But we're in a market today where the unemployment rate's very low. We both were out there hiring people, trying to hire talented engineers and scientists, get people through clearances. So fortunately, we're in an environment where we need more people, not fewer people. Okay, so you think it'll be relatively modest, getting rid of where there might be overlap? Brown: There's going to be some overlap. There'll be some movement of people, but we're not prepared to talk about any employment reduction today. But again, look, it's an environment today where we're looking for more people, especially in the STEM field. The decision to make Melbourne, Florida the headquarters — will that be permanent? Brown: Yeah, it'll be as soon as we close. It'll be the headquarters in Melbourne, and Chris is going to move to Melbourne. We have about 7,000 people in Brevard County. We've been there for 40 years, very deep, entrenched infrastructure. If you know the area, a lot of the defense players, aerospace defense players, are moving now to the Space Coast. It's a very vibrant community. Again, we've been there for a while. We're deeply embedded into the community with a lot of infrastructure at Harris, so that's what we decided to do. Bill, I was convinced you guys were going to move to Washington for a while, but you proved me wrong. Brown: You know, it's interesting. Look, that came up for us, when we did Exelis, but Chris and I've talked about this. It just doesn't make sense for both companies to move headquarters at the same time. That provides an additional risk in a deal. We thought we need to move to one place or the other. We both thought that Melbourne was a better place for the headquarters of the company. Chris, you get to move again. Kubasik: You know, it's been a couple of years, time to move. I'm getting used to it, so if things slow down this week, maybe one night at 10:00 I'll log onto a real estate website and try to be a first mover before the prices increase down there. [laughter] I know you said in the next couple years no acquisitions would be on the horizon, but do you anticipate even more areas of business that would meld with those that you already play well in? Brown: Look, I would say you started out the question the way I'd answer it, which is: it's too soon to determine that. I think the next couple of years will be about integrating the companies. It'll be about divesting. If we see opportunities for portfolio shaping, making sure that happens, so we stay focused on the business where strategically it makes sense for us to be in longer term. But I think Chris and I both have talked very publicly, individually as companies, about M&A is a part of our long-term growth strategy. So over time, we do anticipate, under Chris's leadership, that there'll be other M&As that will happen over time. But I think in the next couple of years, unless it's something exceptional, must have, we're going to stand down on M&A and really focus on integrating the portfolios that we have. Kubasik: Now the organic growth opportunities, and the beauty of having two leaders at the top, will allow us to focus on our customers, not only in D.C., but globally. And you know how much I love to travel internationally — we're going to have customers in over 100 countries. I still look at that in amazement. We'll be able to deepen those relationships. We both work in a lot of the same countries, but when you have a larger combined content, I think we'll be able to advance internationally maybe further, quicker than we would have individually. So I think one of my focus areas is going to be to help grow the business and meet with those customers around the globe. Chris I've spoken to you a couple of times on the big plans and aspirations to be a non-traditional six prime. You got there way faster than I thought you would. Kubasik: Oh, thank you, I'm an impatient person. I know you also said to me that you didn't envision, and I quote, “building multi-billion-dollar satellites, airplanes and ships.” Does that vision of what the company is, and will be, as a six prime remain intact with this merger? Kubasik: We don't really have any major platforms, [but] when I look at the different domains that we're going to be able to serve, whether it's air, space, land or sea or cyber, that's the exciting part. On the air side, as an example, on a combined basis we have some pretty exciting capabilities with avionics and electronic warfare, as an example. So we'll be able to be on the legacy programs, like the F-16 and F-18, which we already are, and we'll have more content on the next-gen platforms like an F-35. So if we go domain by domain, you see the ability to better connect the different platforms to focus on the secured communication. I think we're well positioned for the multi-domain, command and control and communication systems. I'm excited about the small satellite business that Harris had. I think that's great. You know about our UUVs, our UAVs. I think it's going to work well in conjunction with the industry prime. It'll be a collaborative, cooperative relationship. Brown: I think we're not a company that does or will do a lot of these big, major platforms that the big primes are doing today. The way we look at it, 72 percent of the combined business will be prime, meaning sales to and customers. I think that's an important point to make. Bill you've talked to me about space superiority. How key is space to the combined business? Brown: We have a pretty broad business in space in terms of space superiority. A lot of it, it's ground-based capabilities that provide offensive and defensive capabilities to that space architecture. We've developed a lot of exquisite systems and components that have now moved into end-to-end mission solutions for small satellites. We've got a lot of capabilities on our end, in optics. Chris's business, L3, is also strong in small optics, and they've got really good signal intelligence capabilities that I think can augment the things that we do with some of the space architecture. So I see that as helping us continue to broaden that set of mission solutions in the space domain, that I think we spent the last several decades, actually, developing. What does this merger mean to the top primes? Brown: We have at Harris a great relationship with all of the primes. [We] do a lot of work particularly with Boeing and Lockheed. We do quite a bit now with Raytheon as well, so I think we have great partnerships, and I think if anything [this] is going to be additive to that partnership. I think it'll be favorably received by those guys. Kubasik: I agree a 100 percent. I think they're going to be equally excited as the DoD customer for the same reasons. We'll have the money to innovate the R&D, maybe bundle some solutions. They'll also share over time in the affordability of this synergy. I think it's a win-win for the industry and the DoD customers. Bill, in two years you hand the CEO spot to Chris. I'm asking you to look at a couple years down the road, and I know you're remaining on the board, but any other big plans? Brown: Look, that's three and a half years down the road. If I look at six months between sign and close – that's a lifetime year, as you can imagine. I've been CEO here for seven years. That puts me 10 years at the company. I think with Chris, we'll put the company together on the right track. Look, I'll find something productive to do with my life at that point. https://www.defensenews.com/interviews/2018/10/15/harris-and-l3-ceos-talk-merger-divestitures-and-why-we-all-should-have-seen-this-coming

AIR FORCE United Launch Services, Centennial, Colorado, has been awarded a $967,000,000 other-transaction agreement for the development of a Launch System Prototype for the Evolved Expendable Launch Vehicle program. This award is part of a portfolio of three agreements that leverage commercial launch solutions in order to have at least two domestic, commercial launch service providers that meet National Security Space requirements, including the launch of the heaviest and most complex payloads. This agreement requires shared cost investment for the development of the Vulcan Centaur launch system. Work will be performed in Centennial, Colorado; and Decatur, Alabama, with launch facilities at Cape Canaveral Air Force Station, Florida; and Vandenberg Air Force Base, California, and is expected to be completed by March 31, 2025. This award is the result of a full and open competition. This agreement will be incrementally funded with fiscal 2018 through 2024 research, development, test and evaluation funds totaling a maximum of $967,000,000. Fiscal 2018 funds in the amount of $109,000,000 are being obligated at the time of award. The Launch Systems Enterprise Directorate, Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity (FA8811-19-9-0003). Orbital Sciences Corp., Chandler, Arizona, has been awarded a $791,601,015 other-transaction agreement for the development of a Launch System Prototype for the Evolved Expendable Launch Vehicle program. This award is part of a portfolio of three agreements that leverage commercial launch solutions in order to have at least two domestic, commercial launch service providers that meet National Security Space requirements, including the launch of the heaviest and most complex payloads. This agreement requires shared cost investment for the development of the OmegA launch system. Work will be performed in Chandler, Arizona; Magna and Promontory, Utah; Iuka, Mississippi; West Palm Beach, Florida; Sandusky, Ohio; and Michoud, Louisiana, with launch facilities at Kennedy Space Center, Florida; and Vandenberg Air Force Base, California. The work is expected to be completed by Dec. 31, 2024. This award is the result of a full and open competition. This agreement will be incrementally funded with fiscal 2018 through 2024 research, development, test and evaluation funds totaling a maximum of $791,601,015. Fiscal 2018 funds in the amount of $109,000,000 are being obligated at the time of award. The Launch Systems Enterprise Directorate, Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity (FA8811-19-9-0002). Blue Origin LLC, Kent, Washington, has been awarded a $500,000,000 other-transaction agreement for the development of a Launch System Prototype for the Evolved Expendable Launch Vehicle program. This award is part of a portfolio of three agreements that leverage commercial launch solutions in order to have at least two domestic, commercial launch service providers that meet National Security Space requirements, including the launch of the heaviest and most complex payloads. This agreement requires shared cost investment for the development of the New Glenn launch system. Work will be performed in Kent, Washington; Huntsville, Alabama; and Kennedy Space Center and Cape Canaveral Air Force Station, Florida, with launch facilities at Cape Canaveral Air Force Station, Florida; and Vandenberg Air Force Base, California. The work is expected to be completed by July 31, 2024. This award is the result of a full and open competition. This agreement will be incrementally funded with fiscal 2018 through 2024 research, development, test and evaluation funds totaling a maximum of $500,000,000. Fiscal 2018 funds in the amount of $109,000,000 are being obligated at the time of award. The Launch Systems Enterprise Directorate, Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity (FA8811-19-9-0001). General Electric Aviation, Cincinnati, Ohio, has been awarded a not-to-exceed $250,000,000 indefinite-delivery/indefinite-quantity (IDIQ) contract (FA8650-19-D-2057) for Advanced Turbine Technologies for Affordable Mission-Capability (ATTAM) Phase I. The mission of the ATTAM Phase I program is to develop, demonstrate, and transition advanced turbine propulsion, power and thermal technologies that provides improvement in affordable mission capability. This approach extends to a range of legacy, emerging, and future military propulsion, power and thermal technology needs in multiple applications. Work will be performed in Cincinnati, Ohio, and is expected to be completed by October 2026. This award is the result of a competitive acquisition and 54 offers were received. No specific funds are obligated on the basic IDIQ, although in conjunction with the basic IDIQ award, the first task order (FA8650-19-F-2087) is incrementally funded with fiscal 2018 research, development, test and evaluation funds in the amount of $25,000 at time of award. Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity. . DEFENSE LOGISTICS AGENCY US Foods Inc., doing business as US Foods – Lexington, Lexington, South Carolina, has been awarded a maximum $452,617,541 firm-fixed price, indefinite-delivery/indefinite-quantity with economic-price-adjustment contract for full line food distribution support. This was a competitive acquisition with two responses received. This is a two-year base contract with one, one-year option period and one two-year option period. Maximum dollar amount is for the life of the contract. Location of performance is South Carolina, with an Oct. 9, 2023 performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-19-D-3205). Fairbanks Morse LLC, Beloit, Wisconsin, has been awarded a maximum $33,661,555 firm-fixed-price delivery order (SPRMM1-19-F-LK01) under basic ordering agreement SPRMM1-15-G-0901 for turbochargers. 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 stand-alone order with the option to purchase an additional 24 units within 90 days from award. Location of performance is Wisconsin, with a May 11, 2020, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2019 Navy working capital funds. The contracting activity is Defense Logistics Agency Land and Maritime, Mechanicsburg, Pennsylvania. Fairbanks Morse LLC, Beloit, Wisconsin, has been awarded a maximum $33,661,555 firm-fixed-price delivery order (SPRMM1-19-F-LK00) under basic ordering agreement SPRMM1-15-G-0901 for turbochargers. 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 stand-alone order with the option to purchase an additional 24 units within 90 days from award. Location of performance is Wisconsin, with a May 11, 2020, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2019 Navy working capital funds. The contracting activity is Defense Logistics Agency Land and Maritime, Mechanicsburg, Pennsylvania. MISSILE DEFENSE AGENCY Lockheed Martin Missiles and Fire Control, Grand Prairie, Texas, is being awarded a $164,000,000 contract modification (P00034) to previously awarded, sole-source, cost-plus-incentive-fee, cost-plus-fixed- fee, firm-fixed-price, indefinite-delivery/indefinite-quantity contract HQ0147-10-D-0001 for the Terminal High Altitude Area Defense Field Support Contract (TFSC). This modification will increase the total ceiling value from $561,200,000 to $725,200,000. The contractor will continue to perform the same effort under the general scope of the TFSC, which includes logistics performance requirements, forward stationing for theater support, logistics information capabilities, post deployment software support, product assurance, safety, missile support, security and engineering services. This modification will also incorporate the International Engineering Services Program and Field Surveillance Program activity. The work will be performed in Huntsville, Alabama; Sunnyvale, California; Grand Prairie, Texas; and Troy, Alabama. The ordering period remains from March 25, 2010, through March 31, 2019. This contract was awarded under the sole-source authority pursuant to Federal Acquisition Regulations 6302-1, "Only one responsible source and no other supplies or services will satisfy agency requirements." No additional funds are being obligated by this modification; fiscal 2017, 2018 and 2019 operations and maintenance; and procurement funds will be obligated with execution of future task orders. No task orders are being issued at this time. The Missile Defense Agency, Huntsville, Alabama, is the contracting activity (HQ0147-10-D-0001). (Awarded Oct. 9, 2018) ARMY AM General LLC, Auburn Hills, Michigan, was awarded a $121,257,443 cost-plus-fixed-fee contract for engineering, logistics, and system technical support functions for all High Mobility Multipurpose Wheeled Vehicle Family of Vehicles. One bid was solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of Oct. 9, 2023. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-19-D-0001). NAVY The Boeing Co., St. Louis, Missouri, is awarded $34,889,633 for firm-fixed-price, cost-plus-fixed-fee delivery order N6833519F0436 against a previously issued basic ordering agreement (N00019-16-G-0001). This order procures hardware and retrofit kits/upgrades to replace obsolete components and software in the existing Servocylinder Test Stations and Electro-Hydraulic Valve Test Station for F/A-18 A-F and EA-18G aircraft. Work will be performed in St. Louis, Missouri (50 percent); Chatsworth, California (40 percent); and Naval Air Station North Island, California (10 percent), and is expected to be completed in May 2022. Fiscal 2018 aircraft procurement (Navy) funds in the amount of $34,889,633 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Lakehurst, New Jersey, is the contracting activity. Teledyne Wireless LLC, Rancho Cordova, California, is awarded a $7,509,891 firm-fixed-price contract for the repair of the ALQ-99 system in support of EA-6B aircrafts. The contract does not contain a provision for an option quantity. Work will be performed in Rancho Cordova, California, and is expected to be completed by November 2021. Working capital funds (Navy) in the amount of $7,509,891 will be obligated at time of award, 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), with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-19-C-D002). DEFENSE HEALTH AGENCY Dawson D7, San Antonio, Texas, was awarded a five-year, $15,628,917, firm-fixed-price task order (HT001118C0031) through the Tribally-owned Small Disadvantaged Business participating in the Small Business Administration 8(a) Business Development Program. Place of performance is Falls Church, Virginia. This contract supports the Defense Medical Modeling Simulation Office in the requirements and implementation branch for the development of initial contracting requirements, cost estimates, and research. Services include using the Department of Defense procurement and acquisition process to ensure medical modeling and simulation products align with the services and across the enterprise. The base year of $1,614,917 is being funded with fiscal 2018 operations and maintenance funds. This award is a non-competitive direct 8(a) acquisition. Defense Health Agency, Falls Church, Virginia, is the contracting activity. (Awarded Sept. 28, 2018) *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1658771/source/GovDelivery/

By: Tom Kington ROME – Italian firms Leonardo and Fincantieri have announced tighter cooperation on naval systems work to help them build better ships and get ready for an expected Italo-French team-up in warship construction. The two firms said they would relaunch Orizzonte Sistemi Navali, an existing joint venture between them, to develop naval combat systems. Leonardo, which holds 49 percent of the joint venture, has long supplied radars, guns and systems to ships built by shipyard Fincantieri, which holds a majority 51 percent stake. OSN was created in 2002 to integrate the work of the two firms on Italy's Horizon frigates, Cavour carrier and FREMM frigates, but was not used for the more recent construction of Italy's new PPA frigates. In its new form, OSN will “assume responsibility for the development of the combat systems and the definition of subsystem requirements and individual components' architecture, including the Combat Management System (CMS),” in new vessels, the firms said in a statement. “Fincantieri will act as prime contractor, the single interface to customers and hold responsibility for the warship as a whole (Whole Warship Design Authority), therefore in charge, on behalf of OSN, of the architecture of the ship system concerning both the platform and the combat system. Leonardo will be the preferred partner for the Combat Management System and the equipment and systems of the ship,” the statement reads. An Italian industrial source said the deal was designed to make systems integration more central to shipbuilding by the two firms. “Until now a lot of work on integration took place during the ship building process. Now, integration should happen earlier in the process,” the source said. Full article: https://www.defensenews.com/global/europe/2018/10/10/italian-shipbuilders-tout-systems-engineering-chops-ahead-of-french-merger-talks

NAVY NAVMAR Applied Sciences Corp.,* Warminster, Pennsylvania, is awarded $7,707,370 for cost-plus-fixed-fee delivery order N6833519F0432 against a previously issued basic ordering agreement (N68335-15-G-0013). This delivery order provides for the Small Business Innovative Research (SBIR) Phase III work that derives from, extends, or completes an effort performed under SBIR Topics N08-008 entitled “Commandable Mobile Anti-Submarine Warfare Sensor,” N08-023 titled “Precision High Altitude Sonobuoy Emplacement,” and N101-042 titled “Environmental Wideband Acoustic Receiver and Source.” The tasks include performance modeling and simulation, fabrication, component integration, test, training, and prototype procurement activities in support of the Extended Life Sonobuoy/Automated Extended Life Sonobuoy program. Work will be performed in Warminster, Pennsylvania, and is expected to be completed in October 2022. Fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $1,690,000 will be obligated at time of award, none of which will expire at the end of the fiscal year. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity. *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1657693/

Communiqué de presse Le 9 octobre 2018 — Ottawa — Défense nationale/Forces armées canadiennes Le Canada et le Mexique ont des questions d'intérêt commun et sont résolus à accroître la sécurité et la prospérité de leur pays respectif. Ils sont tous deux déterminés à tisser des liens plus étroits en matière de défense et à intensifier les relations panaméricaines. Le Canada apporte aux Amériques un soutien multiforme qui contribue à la sécurité et à la stabilité de la région, tout en adhérant aux valeurs des Canadiennes et des Canadiens et en les incarnant. Pour souligner ces priorités communes, le ministre de la Défense nationale Harjit Sajjan a signé aujourd'hui l'accord de coopération en matière de défense Canada‑Mexique avec le général Salvador Cienfuegos Zepeda, secrétaire de la Défense nationale, et l'amiral Vidal Francisco Sob‎erón Sanz, secrétaire de la Marine. La signature de cet accord bilatéral de coopération en matière de défense marque un important pas en avant dans l'évolution des relations entre le Canada et le Mexique. Cet accord de coopération en matière de défense fournira un mécanisme permettant de collaborer davantage dans un certain nombre de domaines clés, dont l'éducation, la formation et le renforcement des capacités en matière de défense, le matériel de défense, les opérations de soutien de la paix, l'aide humanitaire et les secours en cas de catastrophe. Citations « Le Canada et le Mexique tirent profit d'un partenariat étroit qui mise notamment sur de solides liens en matière de défense. Le Canada est heureux de signer cet accord de coopération en matière de défense avec le Mexique, notre ami et partenaire de l'hémisphère, en marge de la Conférence des ministres de la Défense des Amériques, qui a été couronnée de succès. Nous ‎nous réjouissons à l'idée de continuer de collaborer avec le Mexique en vue de l'avancement de nos priorités communes en matière de défense. » Harjit S. Sajjan, ministre de la Défense Faits en bref L'accord de coopération en matière de défense Canada‑Mexique a été signé en marge de la Conférence des ministres de la Défense des Amériques qui s'est déroulée au Mexique, du 7 au 10 octobre 2018. L'engagement pris par le Canada et le Mexique de resserrer leurs liens en matière de défense s'est traduit au cours des dernières années par des progrès mesurés, y compris des visites de personnalités de haut niveau, un dialogue stratégique et opérationnel et des possibilités de formation. Le Mexique est membre depuis 2004 du Programme d'instruction et de coopération militaires (PICM). Pour 2018‑2019, on prévoit l'attribution de 73 cours dans le cadre du MTCP au Mexique, sous réserve de changements au cours de l'année, dont des postes de direction dans les prestigieux programmes suivants : Programme de sécurité nationale, Programme de commandement et d'état-major interarmées et Cours sur les opérations de l'Armée de terre. Liens connexes Les relations entre le Canada et le Mexique Personnes-ressources Byrne Furlong Attachée de presse Cabinet du ministre de la Défense nationale Téléphone : 613-996-3100 Courriel : byrne.furlong@forces.gc.ca Relations avec les médias Ministère de la Défense nationale Téléphone : 613-996-2353 Courriel : mlo-blm@forces.gc.ca https://www.canada.ca/fr/ministere-defense-nationale/nouvelles/2018/10/le-gouvernement-du-canada-signe-un-accord-de-cooperation-en-matiere-de-defense-avec-le-mexique.html

David Pugliese, Ottawa Citizen Officials are concerned the Irving yard in Halifax won't be able to handle all the work as it will also be building the new Canadian Surface Combatant warships The federal government is looking at splitting up maintenance work on the Canadian navy's frigates between an east coast shipyard and one in Quebec, but is facing objections from Halifax workers and Irving Shipbuilding who warn the change will mean lost jobs in Nova Scotia. There are seven frigates that will need maintenance on the east coast over a five-year period. But military and Department of National Defence officials are concerned the Irving yard in Halifax won't be able to handle all the work as it will also be in the midst of building the new fleet of Canadian Surface Combatant warships. Each of the aging Halifax-class frigates will require about a year of maintenance work, and in 2020 the navy expects maintenance will be needed on two frigates at the same time. Irving won the original maintenance contract in 2011 but that deal is nearly expired.In order to keep the navy at sea, federal procurement officials are proposing splitting up the work between Irving and its rival, Davie Shipbuilding in Levis, Que. Pat Finn, assistant deputy minister of materiel at DND, said that while no final decision has been made, discussions are taking place about splitting up the work. “We have to do this maintenance,” he told Postmedia. “We've got a fair bit to do. We have to keep the navy operational.” Finn said the government's shipbuilding strategy is producing new vessels for both the navy and coast guard, all of which will have to be maintained in the future — a large task. “If we don't have two maintenance and repair facilities for the navy and the coast guard we're going to have a strategic problem,” he said. Union officials at the Halifax shipyard and, defence-industry sources say, Irving itself have been lobbying the Liberal government to stop the plan to send some work to Davie. Irving did not offer comment for this story, but Lana Payne, the Atlantic Regional Director for Unifor, the union representing around 900 employees at the Irving yard, said her organization is worried that as many as 300 staff could face layoffs if some of the work is transferred to Davie. “The Halifax-class has been historically (maintained) at the Halifax yard and the loss of that work will create a major problem for our membership,” she said. “Our understanding is that this is work they can easily do.” Unifor has brought its concerns to Nova Scotia Liberal MPs and other members of the Liberal government. The government will spend several hundred million dollars per frigate for each maintenance period. To date, Irving Shipbuilding Inc. has received more than $3.4-billion in contracts under the government's shipbuilding strategy. That includes contracts for the Arctic and Offshore Patrol Ships and initial work on the surface combatant program. That also includes more than $511 million for repair, refit and maintenance contracts, according to federal government figures. The surface combatant program will result in an estimated $30 billion in build contracts for Irving, with work continuing into the 2040s. Sources within the federal government told Postmedia they do not see widespread layoffs arising from any decision to split the work between the yards. The government is also examining a plan to fast-track some aspects of the surface combatant program so the Irving yard is working at high capacity. Irving raised similar concerns in August after Davie received a contract to refit and upgrade three medium-size icebreakers purchased by the federal government. At the time, Irving noted that it and Seaspan Shipyards in Vancouver had been selected to build Canada's future fleets. “We call upon the Federal Government to confirm to Irving Shipbuilding, our shipbuilders and their families, the Province of Nova Scotia, and all Atlantic Canadians that the National Shipbuilding Strategy remains intact and, therefore, construction of the ships for Canada's Navy and Coast Guard will be done exclusively by Irving Shipbuilding and Vancouver Shipyards,” it pointed out in its statement. Treasury Board President Scott Brison, a Nova Scotia MP, said at the time that Irving's role in the shipbuilding strategy is secure but it has always been the case that other shipyards can compete for maintenance and refit work. • Email: dpugliese@postmedia.com https://nationalpost.com/news/canada/plan-to-split-warship-maintenance-between-quebec-and-nova-scotia-shipyards-prompts-warnings-of-job-losses

AIR FORCE Lockheed Martin Corp., Orlando, Florida, has been awarded a $390,792,959 firm-fixed-price, fixed-price-incentive-fee contract for Joint Air-to-Surface Standoff Missile (JASSM) lot 16 production for 360 JASSM-extended range, three foreign military sales (FMS) separation text vehicles, one FMS flight test vehicle-live fire and tooling and test equipment. Work will be performed in Orlando, Florida, and is expected to be completed by Oct. 31, 2021. This award is the result of a sole-source acquisition. This award uses fiscal 2018 missile procurement funds and FMS funds. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity (FA8682-19-C-0009). Applied Defense Solutions Inc., Columbia, Maryland, has been awarded a $7,526,650 fixed-price and cost-reimbursement modification (P00015) to contract FA255017C8002 for non-governmental space situational awareness services. This modification provides for the exercise of an option for an additional quantity of 12 months of services under the basic contract. Work will be performed at Schriever Air Force Base, Colorado, and is expected to be completed by Oct. 18, 2019. No funds are being obligated at the time of award. Total cumulative face value of the contract is $26,458,756. The 50th Contracting Squadron, Schriever Air Force Base, Colorado, is the contracting activity. (Awarded Oct. 4, 2018). CORRECTION: The contract announced on Oct. 4, 2018, to General Atomics Aeronautical Systems Inc., Poway, California, (FA8620-18-F-2365) for $19,446,593 has not awarded. ARMY General Dynamics Land Systems, Sterling Heights, Michigan, was awarded a $366,852,050 modification (0002 04) to contract W56HZV-17-D-B020 for upgrade of Stryker flat-bottom vehicles to the Double V-Hull Engineering Change Proposal 1 configuration. Work will be performed in Sterling Heights, Michigan, with an estimated completion date of April 30, 2021. Fiscal 2018 and 2019 procurement of weapons and tracked vehicle funds in the amount of $366,852,050 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. The Boeing Co., Mesa, Arizona, was awarded a $242,109,170 modification (P00021) to foreign military sales (United Arab Emirates) contract W58RGZ-16-C-0023 for the remanufacture of eight, and procurement of nine new-build Apache AH-64E aircraft. Work will be performed in Mesa, Arizona, with an estimated completion date of Feb. 28, 2023. Fiscal 2010 foreign military sales funds in the amount of $242,109,170 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Federal Contracting Inc., doing business as Bryan Construction, Colorado Springs, Colorado, was awarded a $52,812,678 firm-fixed-price contract for design and construction of a squadron operations facility and associated operational training facilities at Cannon Air Force Base, New Mexico. Bids were solicited via the internet with 15 received. Work will be performed in Cannon Air Force Base, New Mexico, with an estimated completion date of April 1, 2021. Fiscal 2015 and 2016 military construction funds in the amount of $52,812,678 were obligated at the time of the award. U.S. Army Corps of Engineers, Albuquerque, New Mexico, is the contracting activity (W912PP-19-C-0001). General Dynamics Land Systems, Sterling Heights, Michigan, was awarded a $24,957,920 modification (0001 19) to contract W56HZV-17-D-B020 for upgrade of Stryker flat-bottom vehicles to the Double V-Hull Engineering Change Proposal 1 configuration. Work will be performed in Sterling Heights, Michigan, with an estimated completion date of April 30, 2021. Fiscal 2018 and 2019 procurement of weapons and tracked vehicle funds in the amount of $24,957,920 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. M.R. Pittman Group LLC,* Saint Rose, Louisiana, was awarded a $17,255,645 firm-fixed-price contract for interim closure structure demolition. Bids were solicited via the internet with three received. Work will be performed in New Orleans, Louisiana, with an estimated completion date of May 8, 2020. Fiscal 2014 other procurement (Army) funds in the amount of $17,255,645 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-19-C-0001). Short-Elliott-Hendrickson Inc., Lacrosse, Wisconsin, was awarded a $19,500,000 firm-fixed-price contract for architect and engineering services for the Fort McCoy, Wisconsin, Department of Public Works. Bids were solicited via the internet with nine received. Work locations and funding will be determined with each order, with an estimated completion date of Oct. 5, 2023. U.S. Army Mission and Installation Contracting Command, Fort McCoy, Wisconsin, is the contracting activity (W911SA-19-D-2001). Keysight Technologies, Englewood, Colorado, was awarded an $8,977,287 firm-fixed-price contract for Oscilloscopes 307/U. Two 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 Sept. 28, 2023. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-18-D-0081). NAVY Donjon Marine Co. Inc., Hillside, New Jersey, was awarded a maximum value $215,000,000 cost-plus-award-fee, indefinite-delivery/indefinite-quantity contract for salvage related towing, harbor clearance, ocean engineering project and point-to-point towing services. The primary purpose of this contract is to provide services to assist in the performance of salvage of ships, craft, cargo, and other items as tasked (e.g., aircraft, weaponry, equipment); salvage related towing, harbor clearance; and point-to-point towing; and ocean engineering projects in support of the Supervisor of Salvage. Work will be performed along the North and South American East Coast, and is expected to be completed by September 2023. Fiscal 2018 operations and maintenance (Navy) funding in the amount of $50,000 was obligated at the time of award and expired at the end of the fiscal 2018. This contract was competitively procured via the Federal Business Opportunities website, with four offers received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-18-D-4307). (Awarded Sept. 28, 2018) SMIT Salvage Americas LLC, Houston, Texas, was awarded a maximum value $215,000,000 cost-plus-award-fee, indefinite-delivery/indefinite-quantity contract for salvage related towing, harbor clearance, ocean engineering project and point-to-point towing services. The primary purpose of this contract is to provide services to assist in the performance of salvage of ships, craft, cargo, and other items as tasked (e.g., aircraft, weaponry, equipment); salvage related towing, harbor clearance; and point-to-point towing; and ocean engineering projects in support of the Supervisor of Salvage, SEA. Work will be performed along the North and South American West Coast, and is expected to be completed by September 2023. Fiscal 2018 operations and maintenance (Navy) funding in the amount of $5,000 was obligated at the time of award and expired at the end of the fiscal 2018. This contract was competitively procured via Federal Business Opportunities website, with one offer received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-18-D-4308). (Awarded Sept. 28, 2018) SMIT Singapore PTE LTD, Singapore, was awarded a maximum value $215,000,000 cost-plus-award-fee, indefinite-delivery/indefinite-quantity contract for salvage related towing, harbor clearance, ocean engineering project and point-to-point towing services. The primary purpose of this contract is to provide services to assist in the performance of salvage of ships, craft, cargo, and other items as tasked (e.g., aircraft, weaponry, equipment); salvage related towing, harbor clearance; and point-to-point towing; and ocean engineering projects in support of the Supervisor of Salvage. Work will be performed across the Western Pacific region, and is expected to be completed by September 2023. Fiscal 2018 operations and maintenance (Navy) funding in the amount of $5,000 was obligated at the time of award and expired at the end of the fiscal 2018. This contract was competitively procured via Federal Business Opportunities website, with two offers received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-18-D-4309). (Awarded Sept. 28, 2018) PAE Applied Technologies LLC, Arlington, Virginia, is awarded a $24,292,143 cost-plus-award-fee modification to previously-awarded contract (N66604-05-C-1277), increasing the cumulative total value of the contract for operation and maintenance services for the Atlantic Undersea Test and Evaluation Center (AUTEC). AUTEC is the U.S. Navy's large-area, deep-water, undersea test and evaluation range. Underwater research, testing and evaluation of anti-submarine weapons, sonar tracking and communications are the predominant activities conducted at AUTEC. The contractor performs services required to perform AUTEC range operations and maintenance of facilities and range systems. In addition, the contractor is responsible for operating a self-sufficient one-square-mile Navy outpost. This modification increases the total value of the contract to $788,075,722. Work will be performed on Andros Island, Commonwealth of the Bahamas (82 percent); West Palm Beach, Florida (18 percent); and is expected to be completed by September 2019. No contract funds are being obligated at this time. The Naval Undersea Warfare Center Newport Division, Newport, Rhode Island, is the contracting activity. Lockheed Martin Corp., Rotary and Mission Systems, Moorestown, New Jersey, is awarded $8,020,809 for cost-plus-fixed-fee order N6339419F0003 under a previously awarded basic ordering agreement (N6339417G0001) for engineering services in support of land-based test site maintenance, inventory control, diminishing material source efforts, and program management for the Mk 92 fire control system. This order includes options which, if exercised, would bring the cumulative value of this order to $9,276,806. The order combines purchases for the Navy (16 percent); and the governments of Philippines (40 percent); Egypt (20 percent); Saudi Arabia (16 percent); Poland (4 percent); and Taiwan (2 percent). Work will be performed in Huntsville, Alabama (26 percent); Philippines (20 percent); Egypt (17 percent); Moorestown, New Jersey (13 percent); Saudi Arabia (13 percent); Port Hueneme, California (4 percent); Poland (3 percent); Taiwan (2 percent); and Nigeria (2 percent); and is expected to be completed by September 2022. Foreign military sales (other defense agencies) funding in the amount of $2,579,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Surface Warfare Center, Port Hueneme, California, is the contracting activity. U.S. TRANSPORTATION COMMAND Jacobs Technology Inc., Tampa, Florida, has been awarded a contract modification P00017 on contract HTC711-17-C-D001 in the amount of $18,940,678. This modification provides continued Information Technology Service Management Enterprise support to the U.S. Transportation Command (US TRANSCOM). Work will be performed primarily on-site at Scott Air Force Base, Illinois, and other locations: DISA DECC, St Louis, Missouri; USTRANSCOM Office, Washington District of Columbia; JECC, Norfolk, Virginia; and the Pentagon. The option period of performance is from Oct. 1, 2018, to Sept. 30, 2019. Fiscal 2019 transportation working capital funds operations, operations and maintenance and Defense Health Program funds were obligated at award. This modification brings the total cumulative face value of the contract to $48,981,052 from $30,040,374. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. DEFENSE LOGISTICS AGENCY Airtronics Inc.,* Tucson, Arizona, has been awarded a maximum $13,644,800 firm-fixed-price, indefinite-quantity contract for aviation cable assemblies. This was a competitive acquisition with three offers received. This is a two-year base contract with a one-year option period. Location of performance is Arizona, with an Oct. 16, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2021 defense working capital funds. The contracting activity is Defense Logistics Agency Aviation, Richmond, Virginia (SPE4A619D0001). DCX-CHOL Enterprises, Inc.,* Chatsworth, California, has been awarded a maximum $12,960,000 firm-fixed-price, indefinite-quantity contract for aviation cable assemblies. This was a competitive acquisition with three offers received. This is a two-year base contract with a one-year option period. Location of performance is California, with an Oct. 16, 2021, performance completion date. Using military service Army. The type of appropriation is fiscal 2019 through 2021 defense working capital funds. The contracting activity is Defense Logistics Agency Aviation, Richmond, Virginia (SPE4A619D0002). *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1656310/source/GovDelivery/

Thales has invested in Canada-based Virtual Marine's embedded ship simulation system as part of a new multi-phase research and development project. With an investment of more than $315,000, the project will involve development of a ship simulator for use across a range of platforms and projects in both naval, coastguard and commercial applications. Primarily it will support advanced platform testing and integration requirements for the Royal Canadian Navy programmes such as Arctic and Offshore Patrol Ships and Joint Support Ships In-Service Support (AJISS). Virtual Marine chief technical officer and executive vice-president Randy Billiard said: “The Ship Simulator Research project will result in a more innovative and technologically advanced ship simulator software product that will build on existing simulation technologies to enhance integration support and training options for prime defence integrators. “It will be tested by users who understand the need to properly de-risk systems for safe and full operational integration. This project will further position Virtual Marine as a leading and innovative provider of marine simulation solutions.” The research project will leverage Thales's extensive software engineering expertise and capabilities in big data, connectivity, artificial intelligence and cybersecurity to upgrade baseline technology. The 12-month project will help provide the company with improved embedded navigation simulation capabilities support. In August last year, Thales received a C$800m AJISS contract from the Government of Canada to provide in-service support, refit, repair, maintenance and training to the Canadian Navy's Arctic and Offshore Patrol Ships (AOPS) and Joint Support Ships (JSS). https://www.naval-technology.com/news/thales-invests-ship-simulation-system/

By: Jen Judson WASHINGTON — Lt. Gen. Eric Wesley is the new Army Capabilities Integration Center director and the first director to guide the center's efforts under the purview of the brand-new Army Futures Command, as opposed to Training and Doctrine Command, where the center lived since its inception. ARCIC will be responsible for the development of future operational and war-fighting concepts that align and inform the service's major modernization priorities that Futures Command is tasked to develop in a new and rapid way. In an unprecedented method, concept and capability development will be formed in parallel. In a wide-ranging interview with Defense News, Wesley discussed how the Army is evolving its major operational concept — Multidomain Operations 1.5 — and how ARCIC will continue to align modernization strategy with the concept as the Army heads toward a fully modernized force by 2028 — one that can provide overmatch against peer adversaries. When are you coming out with the new version of the Army's Multidomain Operations concept (MDO 1.5)? Will it be at the Association of the U.S. Army's annual conference? We're teasing it out. What we're going to do is deliver all of the principles and tenets of this new concept, and then you'll see the signed version within 30 days of that. Why is getting the MDO concept right so critical? I'll say upfront this is the most fundamental rewrite of an operational concept since AirLand Battle that was published in 1982. Concepts are critical, particularly at a point in time when you see the world's dynamics fundamentally shift in a way that you've got to, in many ways, reconfigure or redesign and modernize your army. What has changed in the world that requires multidomain operations? I'd say there are a number of things. But if there's a word that you want to remember in terms of identifying the challenges we face within the pacing threats, it is the word “standoff.” And what [our adversaries] have invested in are things that mitigate against the United States and our partners and allies' strengths. We're very good at close combat, and they've watched us over the last 30 years or so. And when you give the United States and our coalition partners and allies time to build up against it, usually the outcome is preordained based on ability to get into position and conduct operations the way we like to conduct them. So recognizing that, they've invested in what we oftentimes refer to as anti-access, area denial capabilities, which serendipitously came parallel with our withdrawal from the continent of Europe and the Korean Peninsula over the last 30 years. Fll article: https://www.defensenews.com/digital-show-dailies/ausa/2018/10/08/us-army-capabilities-integration-chief-talks-multidomain-ops