Nouvelles

By: Joe Gould WASHINGTON ― More than two dozen Democrats are demanding that House Armed Services Committee leaders cut defense spending in the 2021 defense policy bill, saying the money would be better spent combating the coronavirus pandemic. A May 19 letter, mostly from Congressional Progressive Caucus members, marked a prelude to what could be complicated efforts to pass the National Defense Authorization Act in the Democrat-led House. The panel is expected in the coming weeks to introduce and mark up a draft, in line with the $740 billion top line set by the 2019 budget deal. But 29 Democrats ― led by House Progressive Caucus Co-Chair Mark Pocan of Wisconsin and Rep. Barbara Lee, a senior appropriator and California progressive ― said the defense spending should be lower than last year's $738 billion top line. With Americans dying from COVID-19 by the thousands, tax dollars would be better spent on an expansion of testing, contact tracing, treatment and vaccine development, they said. “Congress must remain focused on responding to the coronavirus pandemic and distributing needed aid domestically,” the lawmakers wrote. “In order to do so, appropriators must have access to increased levels of non-defense spending which could be constrained by any increase to defense spending.” “Right now, the coronavirus is our greatest adversary. It has killed more than 90,000 Americans, far surpassing the number of casualties during the Vietnam War,” the letter read. “America needs a coronavirus cure, not more war. We need more testing, not more bombs." How the loss of support from 29 House Democrats will factor into passage of the NDAA remains to be seen. In a note accompanying the letter, the organizers noted that if Republicans held back support ― which they did last year ― only 19 Democrats would need to vote “no” this year for the bill to fail. Last year, House Republicans resisted an early version of the 2020 bill written by House Democrats, but even after many of their priorities were stripped out in negotiations with the Republican-controlled Senate, the compromise bill still passed the House without them, 377-48. House Speaker Nancy Pelosi found common ground with the White House on an eleventh hour paid parental leave provision that attracted most Democrats. This year, House Armed Services Committee Chairman Adam Smith, D-Wash., has spoken in favor of working to protect the defense-industrial base through stimulus funding. But with a stimulus bill caught in a partisan deadlock, it's unclear whether lawmakers will see the NDAA as a potential vehicle for defense industry aid. If so, that could be a sticking point. Last month, Smith told reporters that public health needs were more pressing and that within the Pentagon's existing $738 billion budget, defense officials "have a lot of money and ought to spend that money to meet those needs” before Congress considers more. HASC ranking member Mac Thornberry, who led early Republican opposition to last year's bill, has said he is hopeful this year's bill will be more bipartisan. Thornberry, R-Texas, also opposed the idea of cutting defense to fund health care needs. “I bristle a bit at the notion, ‘well, of course [the Department of Defense has] got to get their budget cut,' " he said, “because the world's not going to be safer on the other side of COVID.” https://www.defensenews.com/congress/2020/05/19/house-progressives-demand-pentagon-cuts-citing-pandemic/

NAVY General Dynamics Ordnance and Tactical Systems, Williston, Vermont, is awarded a $58,590,570 firm-fixed-price modification to previously-awarded contract N00024-20-D-5109 to exercise Option Year One for the production and shipping of Mk 82 guided-missile directors and Mk 200 director control units. Work will be performed in Williston, Vermont (50%); and Saco, Maine (50%). The Mk 82 director serves to position the fire control system antenna to a commanded and stabilized position in space for the purpose of illuminating the target. The director has two axes of motion and has slip rings and a dual radio frequency rotary joint to allow unlimited rotation in train. The Mk 200 director control houses the elevation and train servo-amplifiers for its associated director. Within the director control, solid-state servo-amplifiers provide the servo drive signals that position the director to the desired target position. These components are part of the Mk 99 missile fire control system framework, which is a critical component of the Aegis Weapon System. Work is expected to be complete by December 2025. Fiscal 2020 shipbuilding and conversion (Navy); and Foreign Military Sales funding in the amount of $58,590,570 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. A-VET/MGC JV LLC,* Warner Robins, Georgia (N69450-20-D-0028); CYE Enterprises Inc.,* Jacksonville, Florida (N69450-20-D-0029); and Pacific Tech Construction Inc., Kelso, Washington (N69450-20-D-0030), are awarded $30,000,000 for a design-build and design-bid-build, indefinite-delivery/indefinite-quantity, multiple award roofing construction contract for projects located primarily within the Florida Panhandle area of responsibility managed by the Naval Facilities Engineering Command Southeast. Work will be performed in Pensacola, Florida (34%); Whiting Field, Florida (33%); and Panama City, Florida (33%), and primarily consists of roof system replacements, repairs and maintenance of various types of existing low-slope and steep slope roofing. This includes but not be limited to: modified bitumen; built-up; metal roofing; waterproof roof coatings; asphalt shingles; roof systems flashings and drainage components; and abatement and handling of hazardous/regulated materials (including and not limited to asbestos, lead paint, mold remediation and polychlorinated biphenyl). Single ply roof systems, slate roofing systems and tile roof systems may be included. Projects can be based on design-build, modified design-build or full plans and specifications format. Work is expected to be complete by January 2021. The maximum dollar value for the five-year ordering period for all three contracts combined is $30,000,000. A-VET/MGC JV LLC* is awarded the initial task order at $194,733 for Building 3748 roof replacement located at Corry Station, Pensacola, Florida. The term of the contract is not to exceed 60 months, with an expected completion date of April 2025. Fiscal 2020 operations and maintenance (Navy) (O&M, N) contract funds in the amount of $196,733 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by O&M, N. This contract was competitively procured via the Federal Business Opportunities website, and nine proposals were received. These three contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command Southeast, Jacksonville, Florida, is the contracting activity. Detyens Shipyards Inc., Charleston, South Carolina, is awarded a $24,235,291 firm-fixed-price contract (N32205-20-C-4003) for a 120-calendar day shipyard availability for the regular overhaul dry-docking of the U.S. Navy Ship Patuxent (T-AO 201). The $24,235,291 consists of the amounts listed in the following areas: Category "A" work item cost, additional government requirement, other direct costs and the general and administrative costs. Work will be performed in North Charleston, South Carolina. Work will include main and emergency switchboard cleaning, lifeboat and rescue boat davit maintenance and testing, 6,000 hour overhaul of port and starboard main engine exhaust valves, port and starboard main engine fuel injection pumps, annual firefighting inspection and certification, inspection and overhaul of shaft brakes, ship's service diesel generator #3 overhaul, prep and paint saltwater ballast tanks 10 port and starboard, prep and paint fore peak tank, prep and paint diesel fuel marine cargo tank 7 port, prep and paint jet propellant 5 contaminated tank, prep and paint diesel fuel marine contaminated tank, tank deck non-skid renewal frames 40-50, miscellaneous steel repairs, shower panel and flooring renewals, control reversible pitch propeller system and propeller blade seal maintenance, stern tube seal maintenance, underwater hull cleaning and recoating, freeboard blast and preservation, tail shaft removal and survey, carpet, tile and terrazzo replacement, bi-annual gauge calibration, blast and paint 02 level lifeboats, pump room bilge preservation, starboard capstan overhaul, reefer plant groom, tank deck sprinkler system flush, inspection and painting of diesel fuel marine piping, sea valve and waster piece overhaul, davit modifications and installation of new lifeboats, various pump overhauls, underway replenishment station permanent repairs stations 3 and 4, various steel deck renewals, miscellaneous pipe repair, underway replenishment gear maintenance, stability test, kingpost repairs (partial) trans-alternation, trash chute removal trans-alternation, Gaylord booster heater replacement trans-alternation and fire detection and alarm system replacement trans-alternation. Work is expected to be complete by October 2020. The contract includes options which, if exercised, would bring the total contract value to $27,416,444. Funds will be obligated on May 20, 2020. Contract completion will be Oct. 26, 2020. Contract funds in the amount of $24,235,291, excluding options, are obligated for fiscal 2020 using Navy working capital funds. This contract was competitively procured, with proposals solicited via the beta.sam.gov website and two offers were received. The Military Sealift Command, Norfolk, Virginia, is the contracting activity (N32205-20-C-4003). Vet Industrial Inc.,* Bremerton, Washington, is awarded $17,305,016 for a firm-fixed-price task order (N44255-20-F-4204) under a multiple award construction contract for seismic upgrades to Building 431 at Puget Sound Naval Shipyard, Bremerton, Washington. Work will be performed in Bremerton, Washington. The work to be performed provides all labor, materials and equipment to construct seismic upgrades to Building 431, and also includes the installation of a fire suppression system throughout Building 431. Work is expected to be complete by August 2021. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $17,305,016 are obligated on this award and will expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command Northwest, Silverdale, Washington, is the contracting activity (N44255-17-D-4007). The Boeing Co., Huntington Beach, California, is awarded a $13,211,471 cost-plus-fixed-fee and cost-only modification to previously awarded contract N00024-18-C-4103, to exercise options in support of the AN/USQ-82(V) program for DDG-51 class new construction, DDG-51 class modernization, operations and maintenance, research and development and Foreign Military Sales (FMS). This contract combines purchases for the Navy (91%); the government of Japan (5%); the government of the Republic of Korea (3%); and the government of Australia (1%), under the FMS program. Work will be performed in Huntington Beach, California. AN/USQ-82(V) program is a control system network. Its purpose is to transfer mission critical data to and from users associated with combat, navigation, aviation, power, propulsion, steering, damage control systems and alarms and indicating. Work is expected to be complete by May 2021. Fiscal 2019 and 2020 other procurement (Navy) funding; 2013-2019 shipbuilding and conversion (Navy) funding; 2020 operations and maintenance (Navy) funding; 2020 research, development, test and evaluation (Navy) funding; and FMS funding in the amount of $13,211,471 will be obligated at the time of award. Funds in the amount of $400,000 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Raytheon Co., Keyport, Washington, is awarded a $10,480,184 modification to previously awarded indefinite-delivery/indefinite-quantity requirements contract N61331-17-D-0001 to exercise options for maintenance and support for the AN/AQS-20 Sonar Mine Detecting Set. The AN/AQS-20 is a towed, mine hunting and identification system for program executive office, unmanned and small combatants. Work will be performed in Portsmouth, Rhode Island (65%); Keyport, Washington (30%); and Panama City, Florida (5%). This option exercise extends the period of performance and allows for continuing support including but not limited to: repair; overhauls and other scheduled maintenance; hardware and software maintenance; tracking and resolution of obsolescence issues; technology improvements; reliability and maintainability improvements; development and incorporation of change notices and engineering change proposals; test support; engineering services; spares and repair parts; design efforts and hardware upgrades to improve system performance, sustainability, reliability, and other activities in support of the program. Work is expected to be complete by May 2021. No funding will be obligated at the time of award. The Naval Surface Warfare Center, Panama City Division, Panama City, Florida, is the contracting activity. Austal USA, Mobile, Alabama, is awarded an $8,229,522 cost-plus-fixed-fee modification to previously-awarded contract N00024-11-C-2301 for Littoral Combat Ship (LCS) industrial post-delivery support for LCS 26. Work will be performed in Mobile, Alabama (80%); and Pittsfield, Massachusetts (20%). Austal USA will provide shipboard support to implement approved engineering change proposals, approved government-responsible deficiencies identified during test and trials, crew-related activities and preventative maintenance. Austal will also provide program management support and logistics support for technical documentation affected by the work performed. Work is expected to be complete by March 2021. Fiscal 2016 shipbuilding and conversion (Navy) funding in the amount of $3,970,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. ARMY B.L. Harbert International LLC, Birmingham, Alabama, was awarded a $37,142,044 firm-fixed-price contract for construction of a general purpose maintenance shop. Bids were solicited via the internet with seven received. Work will be performed in Clarksville, Tennessee, with an estimated completion date of July 29, 2022. Fiscal 2020 military construction (Army) funds in the amount of $37,142,044 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-20-C-0022). Benaka,* New Brunswick, New Jersey, was awarded a $15,883,000 firm-fixed-price contract to construct a security forces and communications flight facility. Bids were solicited via the internet with six received. Work will be performed in Westhampton Beach, New York, with an estimated completion date of Nov. 30, 2021. Fiscal 2020 military construction (Army) National Guard funds in the amount of $15,883,000 were obligated at the time of the award. U.S. Property and Fiscal Office, New York, is the contracting activity (W50S8E-20-C-0001). Raptor Training Services LLC,* Oviedo, Florida, was awarded a $13,500,000 modification (P00012) to contract W900KK-14-D-0001 to accommodate known and emerging critical Special Operations Forces requirements. Bids were solicited via the internet with 16 received. Work locations and funding will be determined with each order, with an estimated completion date of Nov. 11, 2021. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity. Systems Products and Solutions Inc., Huntsville, Alabama, was awarded a $13,475,295 modification (000103) to blanket purchase agreement W31P4Q-18-A-0094 for logistical support services for U.S. Army Material Command. Work will be performed in Huntsville, Alabama, with an estimated completion date of May 20, 2021. Fiscal 2020 Army working capital and operations and maintenance (Army) funds in the amount of $13,475,295 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. B&K Construction,* Mandeville, Louisiana, was awarded a $7,941,412 modification (P00001) to contract W912P8-19-C-0071 for drainage canal work. Work will be performed in New Orleans, Louisiana, with an estimated completion date of Dec. 13, 2022. Fiscal 2020 civil operations and maintenance funds in the amount of $7,941,412 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity. (Awarded May 18, 2020) U.S. TRANSPORTATION COMMAND Vane Line Bunkering Inc., Baltimore, Maryland, has been awarded a firm fixed-price contract, HTC711-20-C-W003, in the estimated amount of $26,662,956. The contract provides transportation of bulk jet fuel and marine diesel by tug and barge for the Defense Logistics Agency-Energy in the Atlantic and Gulf Coast regions. The location of performance is ports and points along the coast as well as inland and coastal waterways from Texas to Maine. It includes support to Guantanamo Bay, Cuba. The Air Force and Navy use this fuel for cargo and passenger aircraft delivering supplies to the warfighters conducting overseas contingency operations as well as routine operations. Further, the fuel supports aircrew training, crisis action response for natural disasters and threats to the homeland, and ultimately readiness which directly correlates to the nation's warfighting capabilities. Additionally, fuel provided under this contract supports the Presidential Airlift Group at Joint Base Andrews, Maryland. The contract base period of performance is from Sept. 1, 2020, to Aug. 31, 2021. Fiscal 2020 defense working capital funds were obligated at award. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. DEFENSE LOGISTICS AGENCY Fresh Pack Produce,* Denver, Colorado, has been awarded a maximum $12,600,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for produce. This was a competitive acquisition with two responses received. This is a four-year, six-month contract with no option periods. Locations of performance are Colorado and Wyoming, with a Nov. 19, 2024, performance completion date. Using customers are Army, Air Force and Air National Guard. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-P354). Propper International Inc., Cabo Rojo, Puerto Rico, has been awarded a maximum $11,965,427 modification (P00007) exercising the first one-year option period of a one-year base contract (SPE1C1-19-D-1168) with two one-year option periods for hydration system and corpsman assault packs. This is a firm-fixed price, indefinite-quantity contract. Location of performance is Puerto Rico, with a May 31, 2021, performance completion date. Using military service is Marine Corps. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1168). Rocky Brands Inc., Nelsonville, Ohio, has been awarded a maximum $9,075,661 modification (P00003) exercising the first one-year option period of a one-year base contract (SPE1C1-19-D-1150) with two one-year option periods for certified safety boots. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are Ohio and Puerto Rico, with a May 20, 2021, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. Creighton AB Inc.,* Reidsville, North Carolina, has been awarded a maximum $8,256,325 modification (P00007) exercising the first one-year option period of a one-year base contract (SPE1C1-20-D-1211) with four one-year option periods for dress trousers. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are New York and North Carolina, with a May 22, 2021, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. AIR FORCE Dataminr Inc., New York, New York, has been awarded a $12,180,000 firm-fixed-price contract to provide web-based, mobile and email alerting of events and breaking news based on global sources of publically available information (PAI) to all Department of Defense (DOD) authorized users for force protection and first response via a commercially-available subscription license with 24/7/365 access to alerting for DOD authorized users and maintain compliance with the terms of service and data use policies of all third party PAI data sources that are used to create news alerts. Work will be performed in New York, New York, and is expected to be completed Aug. 18, 2020. Fiscal 2020 operations and maintenance funds in the amount of $4,000,000 will be obligated at the time of award. Air Force District of Washington, Joint Base Andrews, Maryland, is the contracting activity (FA7014-20-C-0022). Rockwell Collins Inc., Cedar Rapids, Iowa, has been awarded an $11,916,073 firm-fixed-price and cost-reimbursable modification (P00101) to exercise the contractor logistics support (CLS) and contractor logistics support performance based incentive options previously awarded on contract FA8678-10-C-0058 to support the sustainment of the Common Range Integrated Instrumentation System (CRIIS) for upgrading the test and evaluation instrumentation at Air Force, Navy and Army test ranges. The objective of the CRIIS CLS is to provide repairs and sustainment management for the CRIIS equipment while verifying sustainment system performance specification requirements. CLS will ensure availability and maintainability of CRIIS equipment at Eglin Air Force Base, Florida; Edwards AFB, California; Naval Air Station, Patuxent River, Maryland; White Sands Missile Range, New Mexico; Nevada Test and Training Range, Nevada; Naval Air Weapons Station, China Lake, California; and Naval Air Station, Point Mugu, California. The contracting action is the result of a competitive acquisition and two offers were received. Work will be performed at Rockwell Collins facilities; Cedar Rapids, Iowa; and Richardson, Texas, and is expected to be completed by May 31, 2025. Fiscal 2020 and 2021 Department of Defense Central Test and Evaluation Investment Program research, development, test, and evaluation funds in the amount of $1,279,875 are being obligated at the time of award. Total cumulative face value of the contract is $340,594,567. Air Force Life Cycle Management Center, Eglin AFB, Florida, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2193451/source/GovDelivery/

“I've heard some people talk about [going] back to a BCA [Budget Control Act] level of funding,” Gen. Murray says, referring to the steep cuts also known as sequestration. “And I've heard some people say that it's even going to be worse than BCA.” By SYDNEY J. FREEDBERG JR.on May 20, 2020 at 1:11 PM WASHINGTON: Over the last two years, the Army has cut or cancelled more than 240 programs to free billions for its 34 top priorities, from hypersonic missiles to new rifles. Some of those 34 may have to die as the economy and budget reel from the COVID-19 pandemic, . “I start off with what Secretary Esper and Secretary McCarthy have said consistently, across DoD: three to five real growth is what we need,” said Gen. Mike Murray, chief of Army Futures Command. “Given what's going on in this country over the last two or three months.... my personal expectation is we're not going to see three to five percent growth. We'll be lucky to see a flat line.” LRPF: Long-Range Precision Fires. NGCV: Next-Generation Combat Vehicle. FVL: Future Vertical Lift. AMD: Air & Missile Defense. SL: Soldier Lethality. SOURCE: US Army. (Click to expand) While the Army is still working on its long-term spending plan for 2022-2026, the future topline is very much in doubt. “I've heard some people talk about [going] back to a BCA [Budget Control Act] level of funding,” Murray told an online AOC conference yesterday, referring to the steep cuts also known as sequestration. “And I've heard some people say that it's even going to be worse than BCA.” “I do think budgets are going to get tighter,” Murray said. “I do think that decisions are going to get harder.” Across its actual and projected budgets for 2020 through 2025, despite a slight drop in its topline, the Army has moved $40 billion from lower-priority programs to the 34 “signature programs.” Murray's Futures Command runs 31 of the 34, grouped in six portfolios: long-range rocket and cannon artillery is No. 1, followed by new armored vehicles, Future Vertical Lift aircraft, an upgraded battlefield network, air & missile defense, and soldier gear. Meanwhile, three most technologically demanding programs – including hypersonics and high-energy lasers – are handled by the independent Rapid Capabilities & Critical Technology Office. “We're prioritizing what I call the 31 plus 3,” Murray said. “We have fully funded those priorities in the program at the expense of a lot of other things.” The XM1299 Extended Range Cannon Artillery (ERCA) howitzer in an earlier test shot last year. But Army leaders have already warned that the Big Six will need more funding as they move from concept to prototype to mass production. Even a flat budget topline will be tight — and COVID makes flat the best-scare scenario. When and if the budget shrinks, Murray warned, “I do think we're going to have to make some tough decisions.” Hypothetically, he said, the choice may come down to something like, “Is it 31 plus three, or is it 24 plus two?” Considering the agonies the Army went through in its multiple rounds of “night court” cuts to find money for the 34 priority programs in the first place, cancelling any of them will be painful – but not impossible. Yes, the Army needs capabilities from each of its six modernization portfolios to work together in what's called Multi-Domain Operations against a future foe like Russia or China. Long-range precision firepower blasts holes in enemy defenses for aircraft, armor and infantry to advance; then they hunt out enemies too well-entrenched or mobile for artillery to destroy. Meanwhile air and missile defense protects the entire force, and the network passes intelligence and targeting data. But each of the Big Six includes multiple programs, and the Army has never expected all 34 to succeed. That's a crucial difference from the service's last major modernization drive, the Future Combat Systems cancelled in 2009, which depended on each of its 20 component technologies working as planned. Army slide showing the elements of the (later canceled) Future Combat System “Is there room for failures? Yes,” Murray told reporters at an Association of the US Army conference last year. “This concept does not count on any specific piece of capability.” That doesn't make cuts painless or easy, however. “Our priorities are our priorities for a reason,” Murray said yesterday. The Army's current weapons, from missiles to tanks to helicopters, largely entered service in the Reagan era. They've been much upgraded since, but there's only so much add-on armor, souped-up horsepower, and advanced electronics a 40-year chassis can take. The Army says it needs new weapons to take it into the next 40 years. “The kids running around on armored vehicles today are riding... fundamentally the same vehicles I rode around in as a company commander, way back when,” Murray said. “My now five-year-old granddaughter [lives] up the road at Fort Hood, Texas... I've got eight grandchildren, and out of all of them, I have absolutely no doubt that she is my infantry company commander wearing an Airborne Ranger tab at some point in the future. So that makes it personal for me.” https://breakingdefense.com/2020/05/army-braces-for-post-covid-cuts-gen-murray

Michael Bruno May 20, 2020 If you like the cadre of big aerospace and defense companies now, you are going to love them later. Among the major trends the novel coronavirus is expected to catalyze within aerospace and defense (A&D) manufacturing is that the big will get bigger by gobbling up others or taking back more work. In the next few years, vertical integration should pick up momentum, according to several executives and consultants. After decades of OEMs, primes and top-tier companies outsourcing major work on their programs, many see the pendulum swinging back to bringing more of it in-house. “We've already seen signs of more vertical integration coming through the industry and potentially where some of that could be accelerated as we work through the crisis,” says one advisor. Boeing started this a few years ago as it insourced avionics and other niche segments. Major consolidation picked up last year with the mergers of Raytheon and United Technologies Corp. and L3 Technologies and Harris Corp. Now, whether it be protecting profits or securing supply, the reasons to own more of the work are burgeoning as industry is refashioned in the COVID-19 crisis. For starters, aerospace suppliers are facing diminished economies of scale but a greater share of fixed-cost in production, with a likely loss in profitability and competitiveness, say Roland Berger advisors Robert Thomson and Manfred Hader. So-called organic top-line increases, through insourcing and acquisition of additional work packages, are possible but only to a limited degree. A fixed-cost reduction likewise is only feasible up to a certain level due to equipment and overhead structures. So consolidation is an important lever to consider. Part and parcel to that will be the financial distress into which suppliers in Tier 2 and below fall—and the opportunity to roll them up. Top CEOs are watching. Speaking May 13 to an investor conference, Honeywell International Chairman, CEO and President Darius Adamczyk cited an inflection point. “For a couple of years now, I've been talking about how it is a seller's market, not a buyer's market,” he told Goldman Sachs. “But that calculus may change in the second half of the year, and I think it could become a bit more of a buyer's market, and the valuations may be better and different. That's something that we want to partake in.” Feeding the phenomenon could be a desire to bring supply closer to home, both for reliability and geopolitical reasons. Suppliers overseas once were revered for their low-cost footprint, but suddenly they are seen as vulnerable to pandemics, economic stress and global trade wars. In turn, consultants expect industry leaders to take another look at favoring local regions. Even in the defense realm, which for now is considered safer during this downturn, there is talk of larger firms becoming even more powerful. “Large pure-plays should come through the pandemic relatively unscathed but may be looking at lower spending growth outlooks,” Capital Alpha Partners Managing Director Byron Callan noted May 13. “Mergers and acquisitions may thus be more important in delivering growth—even though it's not organic growth—in 2021-25.” So where to look for vertical integration and consolidation from the top? Clues are already emerging, according to advisor presentations. First, look at niches where top suppliers already are prevalent—environmental and flight-control systems, landing gear, electrical power and interiors—and others where they are not there yet, including maintenance, repair and overhaul, logistics, aerostructures and engines. Next, look at the supply base from the perspective of a top supplier. Who is distressed or drawing down credit lines? What revenue mix do certain potential targets have—e.g., commercial vs. defense, products vs. services or aging vs. next-generation platforms? Finally, consider where the new nucleus of consolidation will be. Will more “super Tier 1s” such as Raytheon Technologies emerge, or will conglomeration occur among Tier 2 and 3 providers? The first would allow rationalization of capacity for detailed part production from Tier 1 to 3, for instance, with the super Tier 1s able to secure through-value-chain control and prevent subtier supplier failure, according to Roland Berger. The latter likely would be opportunistically driven rather than following any overarching industry logic. For smaller suppliers, the questions are more concise, as one consultant says. Do you want to be a buyer, a seller or risk it as is? A simpler question, for sure, but no less difficult to answer. https://aviationweek.com/aerospace/manufacturing-supply-chain/manufacturing-reshapes-after-covid-19-size-will-matter

Opponents of defense spending may cite the economic consequences of COVID-19 — huge deficits and ballooning national debt— in an effort to slash the Department of Defense's budget. If they succeed, American military supremacy will erode further, inviting aggression from adversaries and decisively undermining American security. By BRADLEY BOWMANon May 20, 2020 at 4:01 AM Even as many Americans huddle in their homes to avoid the coronavirus, our adversaries have continued to use military power to test and undermine the United States. Since the crisis began, Moscow has sent bombers to probe American air defenses near Alaska. China escalated its belligerent activity in the South China Sea. Iran has harassed U.S. naval vessels in international waters. North Korea launched a barrage of missiles. Hackers have pummeled defense networks and suppliers with cyberattacks. All the while, terrorists have continued attacking U.S. and partner forces in Iraq and Afghanistan. Authoritarians and terrorists apparently did not get the memo that they were supposed to play nice during the pandemic. They clearly still believe they can advance their interests and undermine ours with the employment of cyber and kinetic military power. Despite this, opponents of defense spending may cite the economic consequences of COVID-19 — huge deficits and ballooning national debt— in an effort to slash the Department of Defense's budget. If they succeed, American military supremacy will erode further, inviting aggression from adversaries and decisively undermining American security. To be clear, the United States did not find itself in this tenuous position overnight. America's military edge has been eroding for years. For many years after 9/11, Washington repeatedly failed to provide the Pentagon with the timely, predictable and sufficient funding necessary to maintain current readiness and modernize its forces. When confronted with this difficult choice, defense leaders were often forced to postpone vital weapon modernization research and development programs to resource and support the next units to deploy. Meanwhile, Beijing and Moscow studied how the United States fights wars and undertook comprehensive efforts to modernize their weapons and revamp their operational concepts. So, by 2018, the military balance of power had shifted so significantly that the National Defense Strategy (NDS) Commission — a group of bipartisan national security experts not prone to hyperbole — sounded the alarm. “The security and wellbeing of the United States are at greater risk than at any time in decades,” they warned. “America's military superiority—the hard-power backbone of its global influence and national security—has eroded to a dangerous degree.” Thankfully, the U.S. has now emerged from what the 2018 National Defense Strategy called a “period of strategic atrophy” and taken concerted action. With increased defense funding in the last few years and a focus on great power competition, the Department of Defense is undertaking the most significant U.S. military modernization effort in decades. In order to win the intense military technology competition with Beijing and others, the Pentagon is focusing its research and development on artificial intelligence, biotechnology, autonomy, cyber, directed energy, hypersonics, space and 5G. Simultaneously, the Pentagon and combatant commands are working to develop a new joint concept to employ these new weapons. Despite these positive efforts, U.S. military supremacy has continued to erode. Consider Indo-Pacific Command's report submitted in March warning that the military balance of power with China continues to become “more unfavorable.” The United States, it said, is accumulating “additional risk that may embolden our adversaries to attempt to unilaterally change the status quo before the U.S. could muster an effective response.” This is because America has not yet deployed most of the weapons and capabilities it has been developing and is still crafting its new joint warfighting concept. To be sure, each of the U.S. military services are sprinting to field key systems, weapons, and capabilities in the next few years. But the Chinese Communist Party and its People's Liberation Army are sprinting too, and there is no time to waste. The bipartisan experts on the NDS Commission recommended that “Congress increase the base defense budget at an average rate of three to five percent above inflation” in the coming years. If Congress ignores its own commission and slashes defense spending, U.S. military supremacy will continue to erode and could eventually disappear. The far left and libertarians often respond to such arguments by emphasizing the size of the U.S. defense budget. What they fail to mention is that U.S. defense spending, measured either as a percentage of gross domestic product or a percentage of federal outlays, is near post-World War II lows. That doesn't mean assertive congressional oversight is not needed; there is certainly room for improvement at the Pentagon. Indeed, defense leaders must continue to ruthlessly establish priorities, eliminate waste, and implement efficiencies—while credibly demonstrating tangible stewardship to Congress and taxpayers. One should not dismiss the severe economic impacts of the coronavirus. The Congressional Budget Office has highlighted the potentially dire consequences for the federal deficit and debt. But Medicare, Medicaid, and Social Security's mandatory spending — not discretionary defense spending — is the primary driver, by far, of fiscal unsustainability. If the American people and their representatives in Congress provide the Department of Defense sufficient resources over the next few years, the U.S. military will be able to complete and field vital modernization programs. This will ensure U.S. troops have what they need and will enable the United States to re-assert the military superiority that has been so beneficial to peace, prosperity, and security. The coronavirus has certainly demonstrated the need for better domestic health security programs and has delivered a body blow to the U.S. economy. But if political leaders respond by slashing the Department of Defense's budget, Washington risks making American military superiority yet another casualty of the coronavirus. Bradley Bowman, former advisor to Sens. Todd Young and Kelly Ayotte, is senior director of the Center on Military and Political Power at the Foundation for Defense of Democracies. https://breakingdefense.com/2020/05/dont-let-the-covid-deficit-hurt-defense-spending

By: Martin Banks   BRUSSELS – A report predicts that Brexit will be “more harmful and long-lasting” for the British army and U.K.'s defense sector than for the European Union. The exhaustive study by the Warsaw Institute, a leading European think tank, warns that the U.K.'s exit from the EU means existing arrangements and defense cooperation agreements “will need to be reassessed, completely changing the defense landscape of Europe.” It says, however, that an extension to the current transition period, set to end on Dec. 31, would “mitigate damage” caused by the split. Conversely for the EU side, it suggests that the British departure may have a “healing result,” as both France and Germany will be able to pursue “more comprehensive” defense policies for the remaining member countries. Such moves, it adds, was often blocked by the UK, “which believed that NATO would be sufficient as European peacekeeper.” Publication of the report by the Polish Institute is timely as the 1 July deadline set by both the EU and U.K. for deciding if there will be an extension to the talks is fast approaching. The document paints a largely grim picture for the post-Brexit defense sector, pointing out that companies from across Europe buy or sell parts to various British companies. A no-deal Brexit, which, given the lack of progress in the ongoing trade talks, most analysts currently say is by far the most likely outcome at the end of the year, “would mean price hikes and possible delays in European projects relying on British parts or know-how.” Companies likely to be impacted include industry giants like Airbus and products as “complex and important” for European security as the Eurofighter Typhoon. The independent institute, which specializes in geopolitics and international affairs, notes, “The expected crisis can be averted either by a free trade agreement or, should this option not be possible, a bilateral trade agreement between UK and several if not all EU27 states abolishing tariffs and border checks. “Should these measures not be in place, many projects run by European companies may be hit with delays or even cancellations.” The predicted consequences of Brexit for the British army and U.K.'s defense sector are more harmful and long-lasting than those expected to be felt by the EU. This, the non-profit Institute argues, is because Brexit “will strip the U.K. from valuable training opportunities and will take away some of its international power-projection abilities.” “The U.K. will no longer be able to affect the policies that are agreed upon as the part of the Common Security and Defence Policy," or CSDP. But the “biggest downside” of the divorce will be that fewer resources will be available to make up the future peacekeeping and advisory operations run by the EU worldwide. “There will also be less finances available for these operations coming from the CSDP as there will be less contribution paid towards it.” The third round of talks between the two sides concluded last Friday with little progress being made. The UK government has ruled out an extension to the transition period. David McAllister, Chairman of the Committee on Foreign Affairs in the European Parliament, said, “From the very beginning, it was to be expected that the negotiations would not be easy. But we started them from a position of certainty, goodwill, shared interests and purpose.” The German MEP, also chair of the UK Coordination Group in the Parliament, added, “In my opinion, there is still a strong, shared interest of both the EU and the U.K. to sign an ambitious and comprehensive new partnership governing their future relations.” https://www.defensenews.com/global/europe/2020/05/19/study-sees-british-defense-sector-hurting-after-brexit

By: Aaron Mehta WASHINGTON — If Ukroboronprom is to continue as anything more than a local defense firm, the Ukrainian conglomerate will need to find industrial partners abroad, according to director general Aivaras Abromavicius. And attracting those foreign investors will be nearly impossible without a set of needed reforms to the government-owned company, Abromavicius warned Tuesday— reforms he acknowledged seem to be stalling out at the government level. “Western investors and Western companies are very sophisticated and they're very smart. You know, Ukroboronprom for years has had a tainted reputation,” Abromavicius said at an event hosted by the Atlantic Council. “So it is very clear that almost no Western company of any reputation and size is interested in directly acquiring any assets in the defense sector in Ukraine because of the reputational risks.” That is one of the many reasons Abromavicius is pushing reforms of the company, whose questionable reputation was further damaged by a massive scandal in 2019 involving executives receiving kickbacks on parts smuggled in from Russia. The scandal rocked Ukrainian politics, with some arguing it was a major factor in the loss of the presidency by Petro Poroshenko. President Volodymyr Zelenskiy, inaugurated in May 2019, launched an effort to clean up the mess, which included appointing Abromavicius, a former minister of economy and trade, to oversee a reorganization of the company. Abromavicius, who is pushing a full financial audit of the company alongside a potential reorg of its business units, stressed that “we need to raise governance standards to completely different levels,” factoring in increased transparency, if the company is to have any hope of working with nations abroad. And, he said, Ukroboronprom needs partnerships to survive as anything other than a local, small concern. “The way forward for us is to do joint ventures,” Abromavicius said. “Obviously the way forward is just to set up production facilities in Turkey, in India, you now, United Arab Emirates, whereby our [intellectual property] and their financial resources [combine] together to produce for the domestic and global needs.” While acknowledging that U.S. firms are reluctant to work with Ukroboronprom given its history, such a tie-up would be cheap for any of the major American defense companies, said the Atlantic Council's Michael Carpenter. And, he warned, the American government may soon have a major geopolitical incentive to try and push a Lockheed Martin or Raytheon to work with the Ukrainians. “With the economic chaos that's being wrought by the COVID-19 pandemic, I predict you will see China moving into a lot of countries in Eastern Europe and looking to buy up distressed assets at bargain prices, and it's going to be crucial that when Ukroboronprom looks for outside investors or looks for doing joint ventures, that U.S defense industry is poised to partner, and to invest,” Carpenter said. “It's going to be very important for, I think, the U.S. government also to push our defense industry a little bit to look at this as an opportunity,” continued Carpenter. “It's going to be important from a sort of strategic sense not to allow this industrial base to get snapped up by Chinese or other countries that are going to be, frankly, operating in a predatory manner in the months ahead, and that we allow for that matchmaking, not just with U.S. firms but with European firms as well to go forward.” While not directly tied to defense matters, Boeing is reportedly considering some sort of team up with Antonov on the cargo side, with the Ukranians pushing for a formal joint venture. Beijing, meanwhile, has attempted major inroads in Ukraine, with Chinese aerospace firm Skyrizon attempting to purchase a controlling stake in engine manufacturer Motor Sich and the Tianjiao Aviation Industry Investment Company attempting to purchase a chunk of the Antonov facility which produced the An-225 Mriya. China has emerged as a major economic trading partner with Ukraine in the years since Kyiv cut off relations with Russia. (Antonov falls under the Ukroboronprom umbrella.) Pentagon acquisition head Ellen Lord has warned several times since the COVID-19 pandemic began that the DoD needs to be keeping an eye on both the domestic and foreign defense industry, with the expectation China will attempt to use the economic downturn to its advantage. “Western allies took a backseat, ignored the Ukrainian defense sector, and you know, [the] Chinese stepped in and snapped up the best of the private companies in this sector in Ukraine,” said Abromavicius. “So I would urge, obviously, our allies to take a better look at the defense sector which is being reformed right now in Ukraine. And, you know, show us, show more interest in doing things together.” While Zelenskiy came into office promising major reforms to the country, activists have accused his government of stalling out on many of the promised efforts. Abromavicius “fully” acknowledged that the reorganization of Ukroboronprom has slowed recently, saying he hopes Western officials can “give it a kick” to get things moving again, but he expressed his hope that in the coming weeks there may be legislative action. “So it is a bit too early to say that we have a full support, because I say that everybody and their dog has its own view of what Ukroboronprom reform should look like,” he said. “And I think overall, the Defense and Security Committee is a strong supporter, Ministry of the Economy is a strong supporter, I believe that president's offices as well. And I hope that Ministry of Defense is on our side” soon, he said. https://www.defensenews.com/global/europe/2020/05/20/scandal-ridden-ukroboronprom-seeks-fresh-start-in-ties-with-western-arms-makers

NAVY Viasat Inc., Carlsbad, California, is awarded a $998,828,164 maximum potential value, indefinite-delivery/indefinite-quantity contract for the production, retrofits, development and sustainment of the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio Systems (JTRS) terminals. Currently, there are three variants of MIDS JTRS terminals: the Concurrent Multi-Netting-4, the Tactical Targeting Network Technology and the F-22 variant. Work will be performed in Carlsbad, California, and these terminals will continue to be procured, sustained and updated for future growth, including JTRS advanced networking waveforms such as: multifunction advanced data link, intra-flight data link and other advanced networking waveforms. The MIDS JTRS terminal is a line-of-sight radio system for collecting and transmitting broadband, jam-resistant, secure data and voice across a variety of air, sea and ground platforms. Work is expected to be complete by May 2025. Funds in the amount of $48,280,914 will be placed on contract and obligated on the first delivery order concurrent with contract award, which will meet the minimum order requirement. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $8,223,208; and other procurement (Navy) funds in the amount of $1,532,559 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 aircraft procurement (Air Force) funds in the amount of $12,135,592; other procurement (Air Force) funds in the amount of $1,645,504; and research development test and evaluation (Air Force) funds in the amount of $205,688 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 defense-wide procurement in the amount of $1,234,128; and defense National Guard and reserve equipment in the amount of $2,673,944 will be obligated at time of award and will not expire at the end of the current fiscal year. Non-appropriated funds for Foreign Military Sales (FMS) in the amount of $15,015,224; and foreign cooperative programs in the amount of $617,064 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2018 aircraft procurement (Air Force) in the amount of $3,702,384; and other procurement (Navy) in the amount of $1,295,619 will be obligated at time of award and will expire at the end of the current fiscal year. This contract combines purchases for the Navy, Air Force and MIDS Program Office, as well as purchases for NATO and all NATO nations under the FMS program. This contract was competitively procured, and two proposals were received. The Naval Information Warfare System Command, San Diego, California, is the contracting authority and awarded the contract on behalf of the MIDS Program Office (PMA/PMW-101) (N00039-20-D-0058). Data Link Solutions LLC, comprised of BAE, Wayne, New Jersey; and Collins Aerospace, Cedar Rapids, Iowa, is awarded a $998,828,164 maximum potential value, indefinite-delivery/indefinite-quantity (IDIQ) contract for the production, retrofits, development and sustainment of the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio Systems (JTRS) terminals. Work will be performed in Cedar Rapids, Iowa (50%); and Wayne, New Jersey (50%). Currently, there are three variants of MIDS JTRS terminals: the Concurrent Multi-Netting-4, the Tactical Targeting Network Technology and the F-22 variant. These terminals will continue to be procured, sustained and updated for future growth, including JTRS advanced networking waveforms such as: multifunction advanced data link, intra-flight data link and other advanced networking waveforms. The MIDS JTRS terminal is a line-of-sight radio system for collecting and transmitting broadband, jam-resistant, secure data and voice across a variety of air, sea and ground platforms. The ordering period for this IDIQ contract is through May 2025. Funds in the amount of $64,137,404 will be placed on contract and obligated on the first delivery order concurrent with contract award, which will meet the minimum order requirement. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $10,970,335; other procurement (Navy) funds in the amount of $1,802,447; and ship construction procurement (Navy) funds in the amount of $195,965 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 aircraft procurement (Air Force) funds in the amount of $16,461,060; other procurement (Air Force) funds in the amount of $1,959,650; and research development, test and evaluation (Air Force) funds in the amount of $1,175,790 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2020 defense-wide procurement in the amount of $1,567,720; and defense National Guard and reserve equipment in the amount of $3,331,405 will be obligated at time of award and will not expire at the end of the current fiscal year. Non-appropriated funding for Foreign Military Sales (FMS) in the amount of $20,598,117; and foreign cooperative programs in the amount of $979,825 will be obligated at time of award and will not expire at the end of the current fiscal year. Fiscal 2018 aircraft procurement (Air Force) in the amount of $5,095,090 will be obligated at time of award and will expire at the end of the current fiscal year. This contract combines purchases for the Navy, Air Force and MIDS Program Office, as well as purchases for NATO and all NATO nations under the FMS program. This contract was competitively procured, and two proposals were received. The Naval Information Warfare System Command, San Diego, California, is the contracting authority and awarded the contract on behalf of the MIDS Program Office (PMA/PMW-101) (N00039-20-D-0057). Intercontinental Construction Contracting Inc.,* Passaic, New Jersey (N40080-20-D-0011); FBGC JV LLC,* Hampton, Virginia (N40080-20-D-0012); Pontiac Drywall Systems Inc.,* Pontiac, Michigan (N40080-20-D-0013); Maclean-Ocean JV LLC,* Bethesda, Maryland (N40080-20-D-0014); RAND Enterprises Inc.,* Newport News, Virginia (N40080-20-D-0015); and Aimcon Design Build LLC,* Harvey, Louisiana (N40080-20-D-0016), are awarded $99,000,000 for an indefinite-delivery/indefinite-quantity, multiple award design-build/design-bid build construction contract for construction projects located primarily within the Naval Facilities Engineering Command (NAVFAC) Washington area of responsibility (AOR). All work on this contract will be performed primarily within the NAVFAC Washington AOR to include District of Columbia (40%); Virginia (40%); and Maryland (20%). Intercontinental Construction Contracting Inc. is awarded initial task order at $169,821 for the construction of seven above-ground storage tanks and two pump houses at Chesapeake Beach Detachment, Maryland. The work to be performed provides repairs, new construction and alterations to shore facilities and utilities. Additionally, work may also include but are not limited to, engaging in installing and serving mechanical, electrical, plumbing, heating, air-conditioning, building's equipment and other specialized trades. Work for this task order is expected to be complete by June 2021. The term of the contract is not to exceed 24 months, with an expected completion date of May 2022. Fiscal 2020 Navy working capital funds (NWCF); and fiscal 2020 supervision, inspection and overhead contract funds in the amount of $194,821 are obligated on this award and will expire at the end of the current fiscal year. The maximum dollar value including the base period and one option year for all six contracts combined is $99,000,000. Future task orders will be primarily funded by military construction (Navy); operations and maintenance (Navy); and NWCF. This contract was competitively procured via the Beta Sam website, and 23 proposals were received. These six contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command Washington, Washington, D.C., is the contracting activity. Applied Systems Engineering Inc., Niceville, Florida, is awarded a $10,600,000 modification on an indefinite-delivery/indefinite-quantity delivery order N001781-70-D-2053 for additional quantities of Advanced Tactical Navigation units as well as various upgrades, repairs and associated support. Work will be performed in Niceville, Florida, and is expected to be complete by April 2022. This modification raises the contract ceiling to $22,259,073. This modification is being awarded on a sole-source basis in accordance with Federal Acquisition Regulation 6.302-2, Unusual and Compelling Urgency (see 10 U.S. Code 2304(c)(2)). No funds are being obligated at the time of award, and will be obligated on individual orders as they are issued. The Naval Surface Warfare Center, Dahlgren Division, Dahlgren, Virginia, is the contracting activity. W. F. Magann Corp., Portsmouth, Virginia, is awarded a $10,234,262 firm-fixed-price modification for replacement of the Dry Dock 4 north side duct bank at the Norfolk Naval Shipyard, Virginia. Work will be performed in Portsmouth, Virginia, and includes, but is not limited to, demolition of the existing terracotta duct banks and installation of structural, concrete encased duct banks for the electrical systems, shore power, industrial power, capstan power and telecommunications systems. Work is expected to be complete by July 2022. After award of this modification, the cumulative contract value will be $174,551,064. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $10,234,262 are obligated on this award and will expire at the end of the current fiscal year. The Naval Facilities Engineering Command Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-19-C-9014). AIR FORCE Ventech Inc., Largo, Maryland, has been awarded a $99,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for performance of the Base Level Software Support V contract. This contract provides for purchasing of commercial software, software maintenance and bundled maintenance, filing purchases and license information database operations and maintenance, report generation and general support to address software, documentation and licensing issues. Work will be performed at Eglin Air Force Base, Florida, and is expected to be completed May 30, 2030. The period of performance for this services contract is for a five year base period with one five year option. This award is the result of competitive acquisition and 18 offers were received. Fiscal 2020 research, development, test and evaluation funds in the amount of $106,723 will be obligated at the time of award. Air Force Testing Center, Eglin AFB, Florida, is the contracting activity (FA2486-20-D-0009). Survice Engineering Co. LLC, Belcamp, Maryland, has been awarded a not-to-exceed $89,489,901 indefinite-delivery/indefinite-quantity contract for the Defense Technical Information Center (DTIC). This contract provides for the acquisition, storage, retrieval, synthesis, analysis and dissemination of 22 technical focus areas and scientific technical information for the Department of Defense Information Analysis Center mission. Work will be performed at Fort Belvoir, Virginia, and is expected to be completed Dec. 31, 2026. This contract is the result of a competitive acquisition and two offers were received. Fiscal 2020 research, development, test and evaluation funds in the amount of $3,600 will be obligated at the time of award. The Air Force Installation Contracting Center, Offutt Air Force Base, Nebraska, is the contracting activity (FA8075-20-D-0001). Sea Box Inc., East Riverton, New Jersey, has been awarded a $77,454,898 requirements order for basic expeditionary airfield resources expandable bicon shelter hygiene systems for the Support Equipment and Vehicles division at Robins Air Force Base. The order provides for the production of 43 initial quantities and best estimated quantities (BEQ) of five each under the basic period, BEQ of 26 for Option Period One, BEQ of 44 each for Option Period Two, BEQ of 30 each for Option Period Three, and BEQ of 30 each for Option Period Four. Work will be performed in East Riverton, New Jersey, and is expected to be completed May 18, 2024. This award is the result of a sole-source acquisition. Fiscal 2019 other procurement funds in the amount of $15,422,303; and fiscal 2020 other procurement funds in the amount of $2,500,914 are being obligated at the time of award. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8534-20-F-0026). ManTech SRS Technologies Inc., Herndon, Virginia, has been awarded a $20,916,894 cost-plus-fixed-fee and firm-fixed-price modification (P00056) to contract FA8811-10-C-0002 for systems engineering and integration services. Work will be performed at Los Angeles Air Force Base, California; Vandenberg AFB, California; and Cape Canaveral Air Force Station, Florida. Work is expected to be completed Sept. 22, 2020. Fiscal 2020 procurement funds in the amount of $17,673,379; fiscal 2020 operations and maintenance funds in the amount of $1,503,797; and fiscal 2020 research development test and evaluation funds in the amount of $729,723 are being obligated at the time of award. Total cumulative face value of the contract modification and option is $20,916,894. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. ARMY Vigil America Inc., Deland, Florida, was awarded a $49,000,000 firm-fixed-price contract for the Electronic Automatic Activation Device. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of May 14, 2027. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911QY-20-D-0015). WASHINGTON HEADQUARTERS SERVICES UPDATE: The contract announced yesterday, May 18, 2020, to Chenega Healthcare Services LLC, San Antonio, Texas (HQ0034-20-D-0008), to provide COVID-19 contact tracing for Pentagon support services, was actually awarded today. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2192036/source/GovDelivery/

By: Agnes Helou BEIRUT — American firm Oshkosh Defense and Saudi Arabia's Al Tadrea Manufacturing Company have established a joint venture to manufacture armed vehicles in the kingdom. The two companies formed Oshkosh Al-Tadrea Manufacturing, creating “the largest partnership in the history of Saudi armored vehicles,” according to a message on Al Tadrea's official Twitter account. Defense News reported in 2017 that Al Tadrea was in talks with Oshkosh to manufacture armored vehicles in Saudi Arabia. Al Tadrea CEO Fawzi Bin Ayoub Sabri confirmed during an interview that year at the Bahrain International Defence Exhibition and Conference that his company was “"discussing partnerships with many international companies, particularly negotiating with Oshkosh Defense to produce armored vehicles.” Wednesday's online signing ceremony was held between officials and senior executives of the two companies. The joint venture, also known as OTM, will be based in Saudi Arabia, and the kingdom will hold the largest property share, according to a May 14 report by the Saudi Press Agency. “The joint venture will design and provide its first vehicles to be built based on the model of the Oshkosh Defense vehicle in the medium-sized 4×4 Tactical Vehicle (FMTV) category,” the press agency reported. OTM will “develop manufacturing expertise to become a major partner for wheeled tactical vehicle services, [and] it will also provide the necessary services to its customers in the security and military sectors in the Kingdom, through an integrated and sustainable support fleet, as well as activating the supply chains more broadly and more efficiently,” the report read. In a speech during the virtual ceremony, the head of Al Tadrea said: "The current efforts made by the kingdom in the field of industries, especially military industries, demand from us to move forward and follow the government's directions to achieve everything related to homeland security, and to raise the efficiency of military industries and the support of Saudi talents and human capabilities that we rely on by providing job opportunities to the Saudis.” For his part, John Bryant, the president of Oshkosh Defense and the executive vice president of its parent company, Oshkosh Corporation, said that “both Oshkosh Defense and Al Tadrea Manufacturing have worked closely for more than two years to establish this joint venture, by transferring its technology and capabilities. We are very excited to cooperate with this Saudi company with a solid history.” The two firms prepared for this joint venture by providing training opportunities and accreditation certificates to future OTM employees. The training sessions covered manufacturing, repairing and joint maintenance of M-ATVs, which are mine-resistant, ambush-protected vehicles made by Oshkosh and currently in service within the Royal Saudi Land Forces. https://www.defensenews.com/industry/2020/05/14/oshkosh-saudi-arabias-al-tadrea-launch-joint-venture-to-make-armored-vehicles/