Nouvelles

NAVY Raytheon Space and Airborne Systems, McKinney, Texas, is awarded $325,000,000 for a firm-fixed-price contract 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 (59%); and Jacksonville, Florida (41%). Work is expected to be complete by May 2025. This is a five-year base period with no option periods. Annual working capital (Navy) funds in the amount of $54,507,477 will be obligated at time of award, and funds will not expire at the end of the current fiscal year. One company was solicited for this sole-sourced requirement under authority 10 U.S. Code 2304 (c)(1), and one offer was received. The Naval Supply Systems Command, Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-20-D-WC01). Flightline Electronics Inc., Victor, New York, is awarded an $18,588,079 firm-fixed-price indefinite-delivery/indefinite-quantity contract for the manufacture and delivery of 543 TTU-597/E engineering change proposal kits to address parts obsolescence and availability issues on the fuel control test set for Navy and Foreign Military Sales customers. Additionally, this contract provides logistics support documents to include technical manual updates, provisioning data and the interim support items list. Work will be performed in Victor, New York (60%); and Cheltenham, Gloucestershire, United Kingdom (40%), and is expected to be complete by May 2024. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was not competitively procured pursuant to 10 U.S. Code 2304 (c)(1). The Naval Air Warfare Center, Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-20-D-0008). Bell Boeing Joint Project Office, Amarillo, Texas, is awarded a $10,178,059 modification (P00029) to a previously awarded, fixed-price-incentive-firm-target, cost-plus-fixed-fee contract (N00019-17-C-0015). This modification provides for additional repairs in support of the V-22 Common Configuration Readiness and Modernization program. Additionally, this modification provides non-recurring engineering for a drive tube engineering change proposal in support of V-22 (Osprey multirole combat aircraft) production. Work will be performed in Fort Worth, Texas (30%); Ridley Park, Pennsylvania (15%); Amarillo, Texas (13%); Red Oak, Texas (3%); East Aurora, New York (3%); Park City, Utah (2%); McKinney, Texas (1%); Endicott, New York (1%); various locations within the continental U.S. (28%); and various locations outside the continental U.S. (4%). Work is expected to be complete by September 2022. Fiscal 2018 aircraft procurement (Navy) funds in the amount of $4,804,019; fiscal 2019 aircraft procurement (Navy) funds in the amount of $5,119,758; fiscal 2020 operations and maintenance (Navy) funds in the amount of $240,500; and fiscal 2020 aircraft procurement (Navy) funds in the amount of $5,108 will be obligated at time of award, $5,044,519 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. AIR FORCE StandardAero Inc., San Antonio, Texas, has been awarded a $237,395,588 firm-fixed-price, indefinite-delivery/indefinite-quantity contract action for the J85 engine repair. The contractor will provide maintenance, repair and overhaul repairs of the J85 engine. Work will be performed in San Antonio, Texas, and is expected to be completed by May 2028. This award is the result of a competitive acquisition in which one bid was received. Fiscal 2020 operations and maintenance funds in the amount of $10,135,844 is being obligated at the time of award. Air Force Life Cycle Management Center, Tinker Air Force Base, Oklahoma, is the contracting activity (FA8124-20-D-0005). L-3 Communications Integrated Systems, Greenville, Texas, has been awarded a not-to-exceed $76,000,028 cost-plus-fixed-fee, undefinitized contract modification (P00008) to contract FA8620-19-F-4872 for procurement of Group B materials, ground systems integration lab and subcontracts. Work will be performed in Greenville, Texas, and is expected to be completed by March 31, 2024. This contract involves 100% Foreign Military Sales and is the result of a sole-source acquisition. Foreign Military Sales funds in the amount of $37,240,021 are being obligated at the time of award. The 645th Aeronautical Systems Group, Wright-Patterson Air Force Base, Ohio, is the contracting activity. DMS Contracting Inc., Mascoutah, Illinois (FA4407-20-D-0001); C. Rallo Contracting Co. Inc., St. Louis, Missouri (FA4407-20-D-0002); Davinroy Mechanical Contractor Inc., Belleville, Illinois (FA4407-20-D-0003); Hank's Excavating & Landscaping Inc., Belleville, Illinois (FA4407-20-D-0004); J&B Builders Inc., St. Charles, Illinois (FA4407-20-D-0005); Mantle-Plocher JV, Worden, Illinois (FA4407-20-D-0006); Surmeier & Surmeier, Mascoutah, Illinois (FA4407-20-D-0007); and Pugsley Byrne JV LLC, Brighton, Illinois (FA4407-20-D-0008), have been awarded indefinite-delivery/indefinite-quantity contracts with a maximum estimated aggregate value of $45,000,000 under a multiple award task order contract. The awards are in support of the multiple award paving contract program to support the Scott Air Force Base construction program, including paving and civil categories. Work will be performed on Scott AFB, Illinois, and is expected to be completed May 4, 2021. These awards are the result of a competitive acquisition and nine offers were received. Fiscal 2020 operations and maintenance funds in the amount of $500 are being obligated to each contractor at the time of award. The 375th Contracting Squadron, Scott Air Force Base, Illinois, is the contracting activity. DEFENSE LOGISTICS AGENCY SupplyCore Inc.,* Rockford, Illinois, has been awarded a maximum $60,000,000 firm-fixed-price contract for facilities maintenance, repair and operations items. 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 an 18-month bridge contract with no option periods. Locations of performance are Illinois and Alaska, with a Nov. 5, 2021, performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and Coast Guard. Type of appropriation is fiscal 2020 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE8E3-20-D-0011). Raytheon Co., Andover, Massachusetts, has been awarded a maximum $36,688,190 firm-fixed-price delivery order (SPRRA2-20-F-0077) against a seven-year basic ordering agreement (SPRRA2-19-R-0046) for radio frequency exciters. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a three-year, 11-month contract with no option periods. Location of performance is Massachusetts, with a March 31, 2024, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting activity is Defense Logistics Agency Aviation, Redstone Arsenal, Alabama. Leading Technology Composites Inc., doing business as LTC Inc., Wichita, Kansas, has been awarded a maximum $26,752,704 modification (P00010) exercising the second one-year option period of a one-year base contract (SPE1C1-18-D-1073) with three one-year option periods for enhanced side ballistic inserts. This is a firm-fixed-price, indefinite-quantity contract. Location of performance is Kansas, with a May 4, 2021, performance completion date. Using military services are Army, Navy, Air Force, Marine Corps and Coast Guard. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. American Water Enterprises LLC, Camden, New Jersey, has been awarded a $21,810,972 modification (P00251) to a 50‐year contract (SP0600‐03‐C‐8268), with no option periods for the ownership, operation and maintenance of the water and wastewater utility systems at Fort Rucker, Alabama. This is a fixed-price with prospective-price-redetermination contract. Locations of performance are New Jersey and Alabama with an April 15, 2054, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2054 Army operations and maintenance funds. The contracting activity is Defense Logistics Agency Energy, Fort Belvoir, Virginia. Raytheon Co., Andover, Massachusetts, has been awarded a maximum $8,362,088 firm-fixed-price delivery order (SPRRA2-20-F-0079) against a seven-year basic ordering agreement (SPRRA2-19-R-0046) for radio frequency exciters. 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, nine-month contract with no option periods. Location of performance is Massachusetts, with a Jan. 31, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2023 defense working capital funds. The contracting activity is Defense Logistics Agency Aviation, Redstone Arsenal, Alabama. ARMY ASM Research LLC, Fairfax, Virginia, was awarded a $40,284,199 firm-fixed-price contract to provide comprehensive credentialing and privileging program support for the Army National Guard or Air National Guard. Bids were solicited via the internet with four received. Work locations and funding will be determined with each order, with an estimated completion date of May 4, 2025. The National Guard Bureau Operational Contracting Division, Arlington, Virginia, is the contracting activity (W9133L-20-D-1000). Miller Electric Co. Inc., Reno, Nevada, was awarded a $12,000,000 modification (P00004) to contract W911SA-17-D-2006 for sustainment, modernization and improvement projects for the 88th Army Reserve Centers throughout the states of Kansas and Nebraska. Bids were solicited via the internet with six received. Work locations and funding will be determined with each order, with an estimated completion date of May 31, 2021. The 419th Contract Support Brigade, Fort McCoy, Wisconsin, is the contracting activity. CAE USA Inc., Tampa, Florida, was awarded an $11,157,134 firm-fixed-price contract for advanced helicopter flight training support services. Bids were solicited via the internet with seven received. Work will be performed at Fort Rucker, Alabama, with an estimated completion date of May 15, 2027. Fiscal 2020 operations and maintenance, Army funds in the amount of $11,157,134 were obligated at the time of the award. U.S. Army Mission and Installation Contracting Command, Fort Eustis, Virginia, is the contracting activity (W9124G-20-C-0008). Manhattan Construction Co., Tulsa, Oklahoma, was awarded an $8,300,000 modification (PZ0001) to contract W912BV-20-C-0008 for alternate care facilities in Oklahoma. Work will be performed in Tulsa and Oklahoma City, Oklahoma, with an estimated completion date of May 10, 2020. Fiscal 2020 civil construction funds in the amount of $8,300,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Tulsa, Oklahoma, is the contracting activity. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Perspecta Labs Inc., Basking Ridge, New Jersey, was awarded a $29,917,092 cost-plus-fixed-fee contract for a research project under the Fast Network Interface Cards (FastNICs) program. The FastNICs program will speed up applications such as the distributed training of machine learning classifiers by 100x through the development, implementation, integration and validation of novel, clean-slate network subsystems. Work will be performed in Basking Ridge, New Jersey, with an expected completion date of May 2024. Fiscal 2019 research, development, test and evaluation (RDT&E) funding in the amount of $1,110,000; and fiscal 2020 RDT&E funding in the amount of $2,925,000 are being obligated at time of award. This contract was a competitive acquisition under an open broad agency announcement and eight offers were received. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity (HR0011-20-C-0090). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2177362/source/GovDelivery/

With defense budgets expected to be coming in flat under even best-case scenarios, the time for tough decisions might be coming. By PAUL MCLEARY WASHINGTON: The Pentagon may slash older weapons programs to buy new ones in coming years if the federal government's COVID-19 response takes a big bite out of budgets, Defense Secretary Mark Esper said today. Before the global pandemic slammed American society and ground the economy to a halt, Pentagon leaders were already looking at flat defense budgets and were casting about for fat to trim. But the trillions Congress and the Trump administration has pumped into the economy, which falls on top of an already exploding budget deficit, could make predictions of flat budgets look optimistic. Esper told reporters at the Pentagon he would target older programs: “We need to move away from the legacy, and we need to invest those dollars in the future. And we have a lot of legacy programs out there right now — I could pick dozens out from all branches of the services” that could be cut or curtailed. As Army Secretary in 2018, Esper's “Night Courts” saved the service some $33 billion through scrapping oler programs with an eye to pumping cash into new weapons programs. The Navy is undergoing a review that aims to shave $40 billion in the coming years, and the Marine Corps is aggressively getting rid of troops, tanks, helicopters, and — possibly — trimming the F-35 to make room for modernization investments. In particular, the massive modernization of the nuclear delivery systems will not be touched. Esper said “we're not going to risk the strategic deterrent we need to modernize,” if budgets trend downward, but acknowledged that cutting old weapons systems before their replacements were ready “would mean probably accepting some near term risk, but I think [modernizing is] important given the trajectory that China is on, and we know where Russia may be going in the coming year.” Earlier this week, Esper said he was concerned that exploding budget deficits would put an end to the dream of 3% to 5% yearly defense budget growth, which he had targeted for Pentagon modernization. “There is a concern there that that may lead to smaller defense budgets in the future at the critical time we need to continue making this adjustment, where we look at China, then Russia, as our long-term strategic competitors,” he said at the Brookings Institute. Some lawmakers are bracing for the coming cuts. “I am extremely concerned about that,” House Armed Services Committee member Rep. Mike Gallagher told me recently. “I think it is going to require defense hawks, like myself, to make not only more energetic arguments, but new and creative geopolitical arguments,” to advocate for spending on modernization programs. “If you assume downward pressure on the defense budget, it means that DoD will need to get the most out of every dollar spent.” Those arguments will be critically important for the services as they pitch their latest modernization efforts. “I think the budget comes down sooner rather than later,” Mackenzie Eaglen, resident fellow at the American Enterprise Institute, said during a recent webinar Adding fuel to that view was Todd Harrison, DoD budget expert at the Center for Strategic and International Security, who added, “what has historically happened is, when Congress's fiscal conservatives come out and get serious about reducing the debt, reducing spending on defense is almost always part of what they come up with for a solution,” he said. “So, we could be looking at a deficit-driven defense drawdown coming.” https://breakingdefense.com/2020/05/old-weapons-under-fire-as-covid-debt-rises/

No current cloud, commercial or military, lets frontline troops access both classified and unclassified data from all over the world, Dana Deasy told Breaking Defense. That makes JEDI unique – and too complex to split up among multiple contractors. By SYDNEY J. FREEDBERG JR. WASHINGTON: A lot of people – even experts – don't get what the JEDI cloud computing program is really about, Dana Deasy told me. And that, the Defense Department's Chief Information Officer admitted, is partly the Pentagon's own fault he told me during a half-hour interview. So, this morning, after Breaking Defense published the latest of several stories on JEDI's legal and political troubles and the mounting criticism of the program, Deasy agreed to an interview to explain just why he thinks the worldwide military cloud is still essential – and too complexly integrated to split chunks off to different contractors. There are three fundamental misunderstandings about JEDI that the Pentagon needs to dispel, Deasy told me: First, people think JEDI is meant to be the one cloud to rule them all. It's not. While JEDI will be the default option for “general purpose” cloud computing across the entire Department of Defense, it will not replace hundreds of existing cloud contracts across the DoD not prevent the creation of new “fit for purpose” clouds tailored to specific missions. “We definitely had created the wrong perception. People believed that we were going to take all of our clouds, get rid of them, and migrate everything over to JEDI,” Deasy told me. “That was clearly never the intent.” Second, people think JEDI is a 10-year, $10 billion contract. It's not – not necessarily. While that's the maximum value and duration of the contract, the Pentagon has the option to terminate it after two years. There's another end-it-or-extend-it decision three years later, and a third three years after that. The minimum the winning contractor is guaranteed to get? Just $1 million over two years. The Defense Department's strategy to transition to cloud computing. “When I came on board, one thing I did was restructure the terms,” Deasy told me. “I've been working with clouds since clouds were first brought to the commercial industry marketplace, and about every two to three years, you see really big changes. I'm talking about significant enough changes where you just want to step back and look at the marketplace. That's why we changed the terms of the contract.” Third, people think JEDI is just another cloud. It's not. While existing military and even civilian clouds can do some of what JEDI is meant to do, none of them can do all of it. None of them can pull unclassified, secret, and top secret data, from the Pentagon, bases around the world, and forward outposts, and put it all together in a way that even troops in combat can access. “Go out to the tactical edge, sit down with the warfighter, and look at how we push information out to someone who's literally outside of the village on the side of a mountain,” Deasy told me. “I spent some time in Afghanistan last year, and you look at what it takes for them to prepare for a mission, to execute a mission. They are pulling data from a variety of sources, some unclassified, some classified.” But doing that today is damnably hard. It takes a lot of awkward workarounds to bridge the gaps between different and frequently incompatible networks, and you can't bring the kludged-together solution with you into combat. That's why one of JEDI's first priorities is building backpack-sized mini-servers. “To actually combine that data and physically get the information out to the warfighter in a form factor that they could use when they're out in the field, it just doesn't exist today. And no — you cannot pull that off the shelf,” Deasy said. “That is a unique capability that we have to build.” “We have to find a partner to help us do that, and that is what we've been looking to do with JEDI,” he told me. He really means a partner, one contractor, not many, because the task of building this highly complex, tightly integrated system is not something you can split up, the way you would an order for bulk commodities like potatoes, jet fuel, or even online storage. Why not? Let's let Deasy explain it in his own words (edited for clarity and brevity). Q: There's been a lot of excitement over JEDI since the program began in 2018, and a lot of frustration over the delays. How would you respond to the critics who say it's time to give up, or even that it was the wrong approach all along? A: At the time I joined [the Defense Department], which was actually two years ago this week, the first thing that Deputy Shanahan turned over to me was JEDI. The first thing he asked me to do was to go back and take a hard look at was, was this the right thing we were doing for the Department of Defense, were we going about it the right way. Was it the right thing? Yes. Were we going about the right way? Well, I'd say, mixed results. [Now] there's this whole conversation: “Should the DoD give up? Should the DoD start over? Should the DoD go and do something else?” I've spent a lot of time contemplating a bunch of different scenarios, and no matter what scenario I look at, you still have to solve the problem for the warfighter. We need to take data all the way out to the tactical edge, across multiple classification levels. And even if I wanted to stop JEDI today, there is no solution that is available already inside the Department of Defense to do that. I'd have to turn right around, go back out to the market, start an RFP once again to solve for that particular problem. This is why we stay the course. We're not staying the course because we're just being defiant or stubborn. We're staying the course because it's the shortest way to get from point A to point B, because if we don't stay this course, we will still have to go back and solve this particular warfighting need. And that is why I believe staying with JEDI and moving forward is the right solution. It's very easy for critics to say, “hey, there's a bunch of clouds already inside of the Department of Defense, why don't you just go use one of those?” Or “why don't you just split this up and give this to a bunch of different suppliers?” Yes, of course, JEDI can do commodity cloud capabilities, and so do a lot of our other clouds across the Department of Defense. The whole world of commodity cloud has gotten better and better. But it doesn't solve for our classification levels. It doesn't solve for the tactical edge today. If you look at the heart of that RFP [the 2018 Request For Proposals] and you really sort through all the requirements, what makes JEDI still unique today, that cannot be satisfied by other cloud environments, is the fact that it was solving for both OCONUS [Outside the Continental United States] and CONUS; it's moving data across multiple classification levels; and it was looking to create a commercial solution that would give us far better terms, conditions, and pricing than we'd ever seen inside the Department of Defense. When we looked across the landscape of all the cloud environments we had, there was not a single cloud environment that we had that could do all those things, nor was there one being contemplated inside the Department of Defense. We've got the Army that is now looking to consolidate their clouds, we have the Air Force has their cloudOne platform, Navy has stood up a special purpose cloud with their SAP HANA to consolidate their various SAP environments. All of those things fit exactly what we were trying to achieve in the cloud strategy document at the end of 2018. However, if you look at all those cloud environments and other ones that are stood up across Department of Defense, none of those, still, can do CONUS and OCONUS, none of them is solving for the tactical edge, and none of them is solving for multiple classification levels. [Before the stop-work order], we had dozens of projects across combatant commands and the services wanting to be the first to standup in the new JEDI cloud, because of two fundamental things: It offered capabilities that their clouds didn't offer and it offered it at a way better price. At the end of the day, the most competitive way of looking at market forces is, where are the services going to? And they were clearly going towards JEDI because of what it offered in terms of technology and what it offered in terms of price. One of the criteria that we really wanted out of JEDI was to get to the best commercial terms and conditions. And I can tell you after we were done with that award, we clearly in that award had better terms, better pricing than we had in any cloud across the Department. Q: But you took a long time assessing which competitors could meet your technical requirements, finally choosing Microsoft. Given the delays, and given how fast IT changes, is that assessment now obsolete? A: We did not take this final decision on the selection of our vendor until towards the back half of last year. Yes, we started this in 2018, but the offerings that we were looking at were being updated and refreshed throughout the entire RFP process until the point that they submitted their final submissions. Our [implementation] schedule is actually going to be in phases. First, we're going to roll out unclassified, then we're going to roll out the secret, and then we're going to roll out the top secret. And those solutions were going to be designed and built as we went through this process. One of the reasons we did that was because we did recognize that technology would change. We set it up in a way that we absolutely can stay fresh with technology as it changes, because we have these option periods [at two years, five years, and eight years] to go back and look at whoever our provider is and to decide whether or not they're staying current. If we saw that a vendor was starting to lose its competitiveness either on pricing, on speed of delivery, or on technology, you make it clear that if they were to continue down the path they're going, there's not going to be a renewal. The best evidence you get is just how are they delivering every day? Is it working, is it up and running? Do they really give you a tactical edge? Do they really give you multiple classifications? Are the warfighters benefiting from it? Q: But why is having a single contractor you can opt out of at set times better than having multiple vendors competing all the time for work orders under an Indefinite Delivery, Indefinite Quanity contract? A: It's a fair question. And if what we were providing the Department of Defense was pure commodity cloud, a platform for storing and compute and building applications in a standard way that we see industry doing it today, IDIQ would be a perfect way to go. But that's not what we're doing here. That's what gets lost in this whole conversation. This is not your typical, basic, commodity cloud offering where you can put it out to three or four vendors and let the service pick every day who they want. Let's go back to what the requirements are. We are trying to build a cloud that can handle CONUS, OCONUS, unclassified, secret, top secret, traverse the data between those environments, and create hardware solutions at forward bases and to the tactical edge. Imagine for a second that I now wanted to have three or four vendors to do that. Think of the complexity it would take to build cross domain solutions for unclassified, top secret and secret, OCONUS, CONUS, forward bases, tactical edge devices, all the way out to the guys on the side of the mountain. Especially when you think about trying to move forward with this Joint All-Domain Command & Control, where the fight of the future is going to be multiple services and combatant commands having to work together and share data. That becomes almost untenable if you set it up as an IDIQ with multiple vendors. I mean, how would you ever build that to work all the way to the tactical edge? To move data from unclassified to secret to top secret, it's extremely complicated. It's not like you go buy this off the shelf. This is a very bespoke, tailored solution that has to be built. There is an actual hardware element of this, of creating the hardened devices that need to be put into the hands of a warfighter out there on a mission and that's what we don't have today. You have to find a vendor that can help you build those hardened devices out on the tactical edge. If we're doing IDIQs and every time we have a new warfighter need, we now are going to go out for three or four vendors, we're going to put that out, they're going to come back and bid, they're going to give a solution and then we have to go back and now re-integrate that solution. That gets be very hard and very complicated and very time consuming. You have to FEDRAMP all of them, you have to test all of them, you got to run them through certification. We have to put NSA red teams onto them, we have to put US Cyber Command to oversee each of those environments. Is that in the taxpayer's best interest? Does that sound like to you the lowest cost, most efficient solution for the DoD and the warfighter? There's going to be a lot of business across the Department of Defense where IDIQs are going to be perfect and we'll have lots of cloud providers that will flourish. But JEDI is a unique environment where having a partner to help us build this out is the smartest way to go. Throughout this entire process one thing has stayed constant: You have to find a way of putting a warfighter cloud capability into the hands of our men and women out on the tactical edge every day. And I've always looked at my responsibilities as CIO is to not to satisfy the cloud industry, but to satisfy what the warfighter needs. We have a unique war-fighting need that you just can't go get off of the shelf today. https://breakingdefense.com/2020/05/exclusive-dods-cio-makes-case-for-sticking-with-jedi

By THERESA HITCHENS on May 05, 2020 at 3:23 PM WASHINGTON: Northern Command head Gen. Terrence O'Shaughnessy says the key to winning tomorrow's all-domain wars is predicting an adversary's actions — as well as the impacts of US military responses — hours and even days in advance. The capability to perform such “predictive analysis” will be enabled by the US military's Joint All-Domain Command and Control (JADC2) initiative for managing high-speed battle across the air, land, sea, space and cyber domains,” he told the Mitchell Institute yesterday evening in a webinar. “We see JADC2 is absolutely core to the way we're gonna defend the homeland,” O'Shaughnessy enthused. “And the part that I think is going to be so incredibly game-changing is the ability for us to really use predictive analysis and inform our decisions going into the future.” “That's, to me, what JADC2 is going to do: it's going to inform our decision-makers, it's going to help them make decisions that, like playing chess, are thinking about two or three moves downstream,” he added. “It's going to give the decision-makers, at the speed of relevance, the ability to make really complex decisions.” NORTHCOM was a key player in the Air Force's first “On Ramp” demonstration in December of technologies being developed under its Advanced Battle Management System effort, which the service sees as a foundation for JADC2. O'Shaughnessy said he is excited that NORTHCOM will be expanding its participation in the next demonstration, now slated for late August or early September having been pushed back from its original April data due to the COVID-19 coronavirus pandemic. O'Shaughnessy said JADC2 also will be critical for providing much-needed improvements to domain awareness in the Arctic. The US military has to “put together a bigger ecosystem for sensing” rather than relying on “traditional stovepiped systems” in the High North, he explained. That ecosystem needs to fuse information from as many systems as possible — from submarines patrolling beneath the icy waters to ground-based radar to long-endurance unmanned drones to future sensors based on large constellations of Low Earth Orbit satellites — which is exactly the goal of JADC2. “We have to continue to work on our ability to see the approaches to our homeland and understand what what is there and be able to react to it,” said O'Shaughnessy, who also is the commander of NORAD. As Breaking D readers know, the US military is turning an increasingly worried eye toward the Arctic where Russia and China both have begun to covet as a future zone of economic wealth as the Earth's climate opens shipping routes and expands access to undersea oil. O'Shaughnessy said he sees three areas where more investment is required to up the US military's game in the Arctic: communications, training, and infrastructure. Communications at northern latitudes is a particular struggle due to the difficulties of laying fiber optic cable in the harsh terrain, and the paucity of satellite coverage in the region. This, he said, is why NORTHCOM is extremely interested in the potential for so-called proliferated LEO satellite constellations. — both those currently being built by commercial firms and any future military networks. As Breaking D readers are well aware, DoD's Space Development Agency is planning a multi-tiered network of satellites in LEO that includes “data transport” satellites to allow faster communications between satellites and air-, land- and sea-based receivers that Director Derek Tournear sees as integral to JADC2. DARPA also is experimenting with proliferated LEO architectures under its Blackjack program, which plans 20 satellites using various buses and payloads to test their capabilities by the end of third-quarter 2022. DARPA late last month selected Lockheed Martin to undertake Phase 1 satellite integration of satellite buses with payloads and the central Pit Boss C2 system under a $5.8 million contract. SEAKR Engineering announced on April 28 that it had been granted a sole source Phase I, Option 2 contract (under a three-phased program plan) to develop a Pit Boss demonstrator, beating out two other teams led, respectively, by BAE and Scientific Systems. “One of the things we find is after you get above about 65 degrees or so north, some of our traditional means of communications really start breaking down,” he said, “and once you get closer to 70, almost all except for our most exquisite communications capability really starts to break down. And so we see a need to relook our ability to communicate in the Arctic” — with proliferated LEO “one of the best approaches.” “If you look at some of the companies out there doing incredible things, we see that as a solution set to allow us to communicate in the Arctic in the relatively near future, and that will be critical,” he added. https://breakingdefense.com/2020/05/the-key-to-all-domain-warfare-is-predictive-analysis-gen-oshaughnessy

By: Aaron Mehta WASHINGTON — Army rotorcraft programs could net industry an average of $8 billion to 10 billion per year over the next decade — but defense companies can expect major challenges for its lower-tier suppliers, some of whom might choose not to come along for the ride. Those are the findings of a new study by the Center for Strategic and International Studies, released Wednesday. It follows a November report outlining cost concerns about the service's Future Vertical Lift (FVL) plan. The Army plans to field a future attack reconnaissance aircraft, or FARA, by 2028 and a future long-range assault aircraft, or FLRAA, by 2030. The modernization program is one of the top priorities for the Army. First, the good news for industry. The study found an annual market of $8 billion to 10 billion for Army rotorcraft programs over the next decade, with a potential dip occurring only in 2026, when the two new programs are spinning up. That's a strong figure that should keep the major defense companies happy. However, lower-tier companies may find themselves unprepared to actually manufacture FLRAA and FARA parts, given the newer production techniques the Army plans to use — things like additive manufacturing, robotics, artificial intelligence, digital twins, and data analytics. And if that happens, the service could face a supplier problem that could provide a major speed bump for its plans of having the systems ready to go at the end of the decade. Convincing those suppliers, many of whom lack cash on hand for major internal investments at the best of times, to put money down in the near term to redevelop their facilities and retrain people is going to be an “expensive issue,” said Andrew Hunter, who co-authored the study for CSIS along with Rhys McCormick. “They need a really compelling reason to invest.” “For a company that is devoted to the defense aviation market, they don't necessarily have a choice to not make the transition,” Hunter told reporters in a Tuesday call. “However, there is a dollars and cents issue, which is you have to be able to access the capital. If you can't, the primes will quickly go somewhere else.” And some companies with a broader market share in the commercial world may decide investing in modernization isn't worth the effort and simply leave the defense rotorcraft market, leaving the primes to scramble to find replacements. In that case, Hunter said, the primes could potentially look to bring that work in-house. Companies “are looking at the equation” of the commercial versus defense markets when making these decisions, said Patrick Mason, the Army's top aviation acquisition official. But he noted that the recent COVID-19 pandemic, which his hitting commercial aviation firms particularly hard, may cause some companies to consider the benefits of defense, which is historically smaller but more stable than the commercial aviation world. Mason also emphasized the importance of keeping suppliers with experience in the unique heat requirements or material aspects as part of the service's rotorcraft supply chain, saying “Those are the ones we remain focused on because those are the ones who could end up as a failure.” https://www.defensenews.com/2020/05/06/the-armys-future-vertical-lift-plan-may-have-a-supplier-problem/

Dallas, April 30, 2020 /PRNewswire/ - Lockheed Martin (NYSE: LMT) received a $6.07 billion contract from the U.S. Army for the production of Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) interceptors and associated equipment, to be delivered across FY21, FY22 and FY23 contract years. The contract calls for the production and delivery of PAC-3 MSE interceptors, launcher modification kits, associated equipment and non-recurring efforts to support the United States and global customers. "This contract demonstrates our customer's continued confidence in our ability to deliver unmatched Hit-to-Kill technology that defeats the ever-expanding global threats of today and tomorrow," said Scott Arnold, vice president, Integrated Air & Missile Defense at Lockheed Martin Missiles and Fire Control. "PAC-3 MSE is one of the most capable multi-mission interceptors, enabling our customers to defend against advanced tactical ballistic missiles, cruise missiles and aircraft." To meet customer demand and increase production capacity, Lockheed Martin is currently building an 85,000-square-foot expansion at the Camden, Arkansas, facility where PAC-3 MSE interceptors are assembled. The building is expected to be complete by fourth quarter 2021, with operations beginning in first quarter 2022. Ten nations - the United States, Qatar, Japan, Romania, Poland, the United Arab Emirates, Sweden, Korea, Bahrain and Germany - have signed agreements to procure PAC-3 MSE interceptors. For additional information, visit our website. About Lockheed Martin Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 110,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. View original content to download multimedia:http://www.prnewswire.com/news-releases/us-army-awards-6-07-billion-contract-to-lockheed-martin-for-pac-3-mse-production-associated-equipment-301050685.html SOURCE Lockheed Martin

(Reston, Va.) May 4, 2020–Leidos (NYSE:LDOS), a FORTUNE® 500 science and technology leader, today announced that it has completed the acquisition of L3Harris Technologies' (“L3Harris”) Security Detection and Automation businesses, for approximately $1 billion in cash. The transaction was previously announced on Feb. 4, 2020. The acquired businesses provide airport and critical infrastructure screening products, automated tray return systems and other industrial automation products. They will operate within the Leidos Civil Group, led by Jim Moos, Civil Group president. Combined with Leidos' existing cargo and baggage screening product lines, Leidos now goes to market with a global security detection and automation footprint of more than 24,000 systems deployed in more than 120 countries. Leidos will continue to serve global customers in the aviation, transportation, government and critical infrastructure markets. “In line with our mission of making the world safer, healthier and more efficient, this security detection and automation acquisition furthers our important work in the secure movement of people and commerce globally,” said Leidos Chairman and CEO Roger Krone. “We are excited to support critical infrastructure wherever it is needed, and to help transform the global security marketplace.” “This deal expands our scope and scale in securing ports and borders, enhancing passenger movement in airports of the future, and fortifying infrastructure for national security and public venues,” said Moos. “We are pleased to welcome more than 1,200 L3Harris employees around the world to the Leidos team, who share our deep commitment of providing our customers with a fully-integrated security technology ecosystem.” Compelling Strategic and Operational Benefits Expands Product Portfolio in High-Growth, Global Security Market: The closing of this acquisition creates a comprehensive and cohesive security detection platform by adding technologies including checkpoint CT scanners, people scanners, explosives trace detectors, checked baggage screeners, and automated tray return systems (ATRS) to Leidos' security detection portfolio. The combined solutions enhance the company's offerings in an evolving global security product market, which allows diversification beyond the federal budget and positions the company for long-term growth. Increased International Presence Diversifies Revenue: This business expands customer penetration across aviation, ports, borders, and critical infrastructure internationally and increases Leidos' international security products revenue more than six-fold. The deal brings Leidos products into 75 additional countries. Growth and Innovation Accelerated by Scale: The integration of these new businesses into a comprehensive portfolio enables Leidos to leverage its core technical strengths, in-depth biometrics capabilities, and global sales channels to rapidly develop and deliver new solutions. Technology investments across the combined portfolio will help accelerate innovation to address emerging and evolving threats and improve service efficiency for customers. Transaction Details The transaction is expected to be immediately accretive to Leidos' revenue growth, EBITDA margins, and non-GAAP diluted earnings per share upon closing. Cash consideration of approximately $1.0 billion plus related transaction costs was funded through a combination of excess cash on hand and a two-year term loan. Advisors Leidos retained Credit Suisse Securities (USA) LLC as financial advisor, and Fried, Frank, Harris, Shriver, & Jacobson LLP and DLA Piper as legal advisors in connection with the transaction. About Leidos Leidos is a Fortune 500® information technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, homeland security, civil, and health markets. The company's 37,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Va., Leidos reported annual revenues of approximately $11.09 billion for the fiscal year ended January 3, 2020. For more information, visit leidos.com. Cautionary Statement Regarding Forward-Looking Statements The forward-looking statements contained in this release involve risks and uncertainties that may affect Leidos' operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission (the “SEC”). Without limiting the foregoing, forward-looking statements often use words such as “believe,” “anticipate,” “plan,” “expect,” “estimate,” “intend,” “seek,” “project,” “target,” “goal,” “may,” “will,” “would,” “could,” “should,” “can,” “continue” and other words of similar meaning in connection with a discussion of the transaction or future operating or financial performance or events. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the expectations of Leidos will be realized. This release also contains statements about the acquisition of the security detection and automation businesses of L3Harris that are based on assumptions currently believed to be valid but involve significant risks and uncertainties, many of which are beyond Leidos' control, which could cause Leidos' actual results to differ materially from these forward-looking statements with respect to the transaction, including, anticipated tax treatment, ability to retain key personnel, the dependency of the transaction on market conditions and the impact of a change in market conditions on the value to be received in the transaction, unforeseen liabilities, future capital expenditures, uncertainty as to the expected financial condition and economic performance of the company following the closing, including future revenues, expenses, earnings, indebtedness, losses, prospects, business strategies for the management, expansion and growth of the company following the closing, Leidos' ability to integrate the businesses successfully and to achieve anticipated synergies, the risk that disruptions from the transaction will harm Leidos' business and the impact of the COVID-19 outbreak. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Leidos' consolidated financial condition, results of operations or liquidity. For a discussion identifying additional important factors that could cause actual results to vary materially from those anticipated in the forward-looking statements, see Leidos' filings with the SEC, including “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in Leidos' annual report on Form 10-K for the year ended January 3, 2020, and in its quarterly reports on Form 10-Q which are available at http://www.Leidos.com and at the SEC's web site at http://www.sec.gov. The forward-looking statements contained in this release are made only as of the date of this release and are based on the information available to Leidos as of the date of this release. Readers are cautioned not to put undue reliance on forward-looking statements. Leidos assumes no obligation to provide revisions or updates to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws. View source version on Leidos : https://www.leidos.com/insights/leidos-completes-acquisition-l3harris-technologies-security-detection-and-automation

Cincinnati, April 30, 2020 - GE Aviation's F110 engine continues to remain the engine of choice of advanced F-15 and F-16 aircraft around the world. This month, the U.S. Air Force Life Cycle Management Center (AFLCMC) awarded GE Aviation four contract actions valued at around $707 million for F110-GE-129 engine production. These contracts which fall under an existing indefinite-delivery/indefinite-quantity (IDIQ) contract, will provide F110 engines, installs, spares and modernized engine management system computers for Lockheed Martin F-16C/D Block 70 aircraft, as well as the Boeing F-15QA Advanced Eagle. The contracts involve Foreign Military Sales to Bulgaria, Slovakia, Qatar and Taiwan. “GE Aviation is honored to support the U.S. Air Force and foreign military sale customers,” said Shawn Warren, GE Aviation's vice president and general manager of large combat and mobility engines. “We say GE's F110 engine remains the engine of choice of modern F-15 and F-16 fleets around the world because we continue to support the F110 with a continuous infusion of new technology, including our Service Life Extension Program (SLEP).” GE's F110 engine powers 86 percent of F-15s delivered globally over the last 15 years and 70 percent of today's most advanced USAF F-16C/D fleet. GE Aviation also powers two-thirds of U.S. military fighters and helicopters. Over the last two months, GE Aviation has been awarded more than $1.2 billion in contracts to produce engines and hardware to support the U.S. military and international customers. Beyond the F110 deal, GE was awarded: • A $62 million contract modification to manufacture T700 engines for 40 UH-60M Black Hawk helicopters for the U.S. Army and international customers • A $215 million contract modification to produce 48 F414 engines and modules • A $138.2 million contract to provide TF34 engine supplies to the U.S. Air Force • A $72.5 million modification contract with the Navy to procure 140 generator converter units, 140 wiring harnesses and other components in support of the F/A-18E/F Super Hornet and E/A-18G Growler aircraft electrical systems • A $51.5 million contract modification for eight F414 spare engines, 11 afterburner modules and 12 low pressure turbine modules for the Navy F/A-18 • A $9.7 million contract modification to re-start T64 engine core production in support of the H-53E Engine Reliability Improvement Program for the Navy The work involved in these contracts will be executed at GE Aviation's facilities which include Lynn, MA; Evendale, OH; Madisonville, KY; Rutland, VT; Hooksett, NH; Asheville, NC; Wilmington, NC; Muskegon, MI and other U.S. supply chain locations. “These new contracts underscore the essential role we play as the leading provider of fighter and helicopter engines for our military customers,” said Al DiLibero, GE Aviation's vice president and general manager of medium combat & trainer engines. “We are honored by these opportunities, which will add to GE's current installed base of more than 27,000 military engines.” While GE Aviation continues to produce engines and components, hundreds of military aircraft around the world are in the air daily to assist in critical areas needed to combat the coronavirus pandemic. The U.S. military alone is handling a variety of coronavirus responses, including building and converting facilities into temporary care centers, distributing food, providing security and transporting critical medical supplies. According to the U.S. Department of Defense, more than 28,000 National Guard soldiers and airmen in every state and territory have been activated to support COVID-19 response efforts. Hundreds of military aircraft are in the air daily to assist in these measures. Each day, GE continues to see these aircraft performing a variety of missions—from GE T700-powered Black Hawk helicopters operating daily missions to deliver critical supplies to communities to CF6-powered C5M Super Galaxy's used to mobilize medical personnel. “The efforts of our dedicated military servicemen, servicewomen, and civilians that are responding to the COVID-19 outbreak is heroic,” DiLibero said. “We are focused on doing our part to support the Warfighter.” About GE Aviation GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet and turboprop engines, components and integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings. For more information, visit us at www.ge.com/aviation Follow GE Aviation on Twitter at http://twitter.com/GEAviation and YouTube at http://www.youtube.com/user/GEAviation . View source version on GE Aviation: https://www.geaviation.com/press-release/military-engines/ge-aviation-awarded-707-million-f110-engine-production

By: Venture capital community leaders The COVID-19 health crisis is quickly leading to an economic meltdown, throwing millions of Americans out of work and forcing strategic reevaluations across industries. The defense industry is no exception. We are praying for a swift end to the crisis, but its effects will linger, shaping the Pentagon's priorities, organizational structure, military operations, logistics, supply chains and interactions with the defense-industrial base for years to come. In the past few weeks, we have had numerous conversations with government officials about our venture and growth equity investments in the defense sector. These discussions have centered on the eligibility rules of the CARES Act's Paycheck Protection Program and the risk of foreign capital seeking entry into defense technology startups desperate for investment in these trying times. But these are secondary questions. The primary question is this: How can the Pentagon best preserve its innovation base and develop the most competitive and advanced technologies? The answer is simple: Buy commercial. New and emerging defense startups — and our men and women in uniform — don't need symbolic gestures. What they need is concerted action to bring the latest and most advanced technologies — many of which are routinely used in industry — to dangerously antiquated defense weapons systems and internal IT infrastructure. This was true before COVID-19, it is true now and it will be true when the next crisis strikes. All too often the government has responded to crises by circling wagons around incumbent firms — the large prime contractors, whose political connections afford them bailouts in the name of “ensuring ongoing competition.” This process is already underway. After announcing its hope for a $60 billion relief package for the aerospace manufacturing industry, Boeing successfully lobbied for $17 billion worth of loans for firms “critical to maintaining national security.” The CARES Act also announced provisions to streamline the Defense Department's contracting process, which sounds promising, except for the fact that these provisions apply only to contracts worth over $100 million. This discriminates against smaller, more nimble innovators and providers of cutting-edge technology. This isn't how things have always been. After complaints about large horse dealers monopolizing military contracts during the Civil War, the government allowed quartermasters to purchase horses and mules from any dealer on the open market. In World War II, Congress created the Smaller War Plants Corporation, which awarded tens of thousands of contracts to small, competitive firms. Today, through innovative use of Small Business Innovation Research money, other transactional authorities, rapid work programs and the like, the Pentagon is certainly signaling interest in emerging technologies. But let us be clear: We are not advocating continuing to invest larger dollar amounts into never-ending, short-term pilots and prototypes. The key to sustaining the innovation base through this crisis and any future crises is transitioning the best of these companies and products into real production contracts serving the day-to-day needs of the mission. Host tough, but fair competitions for new innovations, and then rapidly scale the winners. America's technological supremacy has afforded our country nearly a century of military hegemony, but it is not a law of nature. Sovereign states and peer competitors like Russia and China will quickly outpace us if we take our prowess for granted. We need new entrants into the defense industry more than ever, but without government support through crises like this one, the talent and capital simply won't be there. Why do investors say defense isn't a safe bet? As the Department of Defense readily acknowledges, its mission is fundamentally changing. Breakthroughs in technological fields like artificial intelligence, autonomous systems, robotics, resilient networks and cyberwarfare mean that future conflicts will look nothing like those we have seen before. The DoD of tomorrow needs a fresh wave of technical expertise to understand and respond to these new kinds of threats. That is not to say that legacy defense contractors are not needed; their expertise in large air and sea vehicles is currently unparalleled. But the expertise to build these new technologies resides in pockets of talent that the big and bureaucratic incumbents, who made their names with 20th century technology, lost access to decades ago. The DoD has publicly exalted the importance of innovative defense startups for years. That is partly why we are so excited to invest capital into the defense sector at this moment in history. Silicon Valley has a chance to live up to its oft-ridiculed but sincere ambition to make the world a better place by investing in American national security. However, we as venture capitalists and growth equity investors also have a duty to our limited partners who have entrusted us to invest and grow their capital. If we see the same old story of the government claiming to support small businesses but prioritizing its old incumbents, those investment dollars will disappear. Times of rapid and unprecedented change, as COVID-19 has precipitated, also provide opportunities. The DoD and Congress can reshape budget priorities to put their money where their mouths have been and support innovative defense technologies. Each dollar awarded to a successful venture capital and growth equity-backed defense startup through a competitively awarded contract attracts several more dollars in private investment, providing the DoD significantly more leverage that if that same dollar was spent on a subsidy or loan to a large legacy contractor. This leverage of private capital means that every contract a startup receives accelerates by up to 10 times their ability to build technology and hire talent to support the DoD's mission. The bottom line is this: There's no reason to let a health crisis today become a national security crisis tomorrow. The DoD has an opportunity to not only sustain but grow its innovation base, and give contracts, not lip service, to innovators. We, the undersigned, hope they do. The contributors to this commentary are: Steve Blank of Stanford University; Katherine Boyle of General Catalyst; James Cham of Bloomberg Beta; Ross Fubini of XYZ Capital; Antonio Gracias of Valor Equity Partners, who sits on the boards of Tesla and SpaceX; Joe Lonsdale of 8VC, who also co-founded Palantir; Raj Shah of Shield Capital, who is a former director of the U.S. Defense Innovation Unit; Trae Stephens of, Founders Fund; JD Vance of Narya Capital; Albert Wenger of Union Square Ventures; Josh Wolfe of Lux Capital; Hamlet Yousef of IronGate Capital; and Dan Gwak of Point72. https://www.defensenews.com/opinion/commentary/2020/05/04/the-defense-industry-needs-new-entrants-and-a-supportive-government-during-crises/