Nouvelles

«Il revient aux États de définir les mécanismes de protection des entreprises stratégiques de défense face à des investissements de fonds réputés agressifs», a souligné mardi Éric Trappier, président du GIFAS et PDG de Dassault Aviation. «Aux États-Unis, lorsque des fonds étrangers veulent entrer au capital d'une entreprise américaine ou en prendre le contrôle, le projet est étudié par le CFIUS (Comité sur les Investissements Etrangers aux États-Unis) qui vérifie que cet investissement ne menace pas les intérêts stratégiques américains», a-t-il expliqué. «L'Europe pourrait se doter d'un tel outil. Pour cela, il faut regarder les aspects juridiques, les règles de concurrence car nos entreprises travaillent sur des marchés ouverts, et «détourer» ce qu'est une entreprise stratégique». Jean-Charles Larsonneur, député LREM spécialiste du sujet, interrogé par Le Figaro, met également en garde contre les risques de rachat d'entreprises stratégiques françaises, notamment de la part de la Chine et des Etats-Unis. «On parle de résilience et de souveraineté, alors il faudrait que l'Europe investisse dans sa défense», conseille-t-il. Le Figaro du 6 mai

By: Aaron Mehta WASHINGTON — If the Pentagon faces tighter budgets in the coming years, departmental planners should look to cut legacy programs first in order to preserve funding for modernization requirements, Defense Secretary Mark Esper told reporters Tuesday. “Frankly, my inclination is not to risk any in the modernization programs; it's to go back and pull out more of the legacy programs,” Esper said in response to a question about what modernization priorities, such as shipbuilding, might be on the table. “We need to move away from legacy [programs] and we need to invest those dollars into the future. We have a lot of legacy programs out there right now. I could pick dozens out from all branches of the services. So that is where I would start,” he continued. “What that would mean is probably accepting some near-term risk, but I think that is something [that has to happen], given the trajectory that we see China is on, and we know where Russia may be going in the coming years. So that is one place where I would begin, but we're going to be working through this course of action.” The secretary also emphasized that he's not going to “risk the strategic deterrent,” reiterating that modernizing America's nuclear capabilities remains the department's top priority. Budgets were already expected to be flat or decline slightly in the coming years before the coronavirus pandemic, which has required the U.S. government to pump trillions of dollars into the economy. Esper said that “tremendous load” is something the department must consider as it plots a budget strategy for fiscal 2022 and beyond. His comments match what the secretary said Monday during an appearance at the Brookings Institution, where he said the spending spree in response to the spread of COVID-19 means the department's ongoing efforts to find internal efficiencies must continue to bear fruit. The department claimed savings of $6.5 billion in FY19 through process reforms and the sale of obsolete equipment, with another $5.7 billion in spending reallocated from legacy programs to modernization priorities. During the Brookings event, Esper noted that the department will “likely need” extra money from Congress if a fourth coronavirus supplemental fund is worked out, in order to help cover costs for medical supplies procured by the Pentagon. At the start of his press event, the secretary used prepared remarks to note that top defense leaders will be appearing at the Senate Armed Services Committee tomorrow to discuss the Federal Communications Commission's decision to allow Ligado to operate in the L-band spectrum, a move long opposed by the department because of concerns it will negatively impact GPS. Esper said the decision “disregards the many objections of industry and the inner agency, grounded in years of hard data and science. Ultimately this will cause harmful interference to the GPS network, jeopardizing our nation's security, prosperity and way of life.” The secretary declined to comment on why the FCC moved ahead with the decision. C4ISRNET, a sister publication of Defense News, has reported the decision came amid political pressure from top Trump administration officials. https://www.defensenews.com/pentagon/2020/05/05/esper-flat-budget-could-speed-cutting-legacy-programs/

Andrew Eversden Two U.S. senators called on the Office of Management and Budget to ensure that federal regulation banning the government's use of Chinese telecommunications technology include “explicit processes” to help small businesses with compliance. In a May 4 letter sent to acting OMB Director Russ Vought, Sens. Marco Rubio, R-Fla., and Ben Cardin, D-Md., asked Vought to carefully consider to the needs of small businesses while the agency reviews a proposed rule. The senators' concern is in response to a proposed rule under review by OMB implementing Section 889(a)(1)(B) of the fiscal 2019 defense policy law — a provision that bans federal agencies from procuring or doing business with companies using “covered telecommunications equipment or services" in an effort to block Chinese tech companies like Huawei and ZTE from entering the U.S. government's supply chain. Rubio and Cardin are the top two senators on the Senate Committee on Small Business and Entrepreneurship. According to the letter, OMB is currently reviewing the draft proposed rule, statutorily required to be implemented Aug. 13. Because smaller companies don't have access to the same resources as larger suppliers, they may need “more assistance and time,” the senators wrote. The pair called the guidance for small businesses “vita,l” given that small businesses make up about one-quarter of federal procurement, worth $120 billion. “By providing these small firms with a clear path toward compliance and a reasonable time frame, we believe that the goal of securing the United States supply chain will be better achieved,” Rubio and Cardin wrote. Outside interest groups representing federal contractors have also pushed Congress to delay the implementation of Part B of Section 889. In a joint letter in late March, the National Defense Industrial Association and the Professional Services Council asked Congress to delay the Aug. 13 date to February 2021. They also cited the ongoing coronavirus pandemic as reason for a delay. “Part B will impose significant financial and operational costs on medium and small-sized firms at a moment of substantial uncertainty and hardship. While we agree that Part B addresses a significant problem in defense supply chains, and that additional measures are needed to protect [Department of Defense] information assets from covered equipment, COVID-19 has made the current implementation timeline infeasible,” the groups wrote. The United States government alleges that Huawei's 5G technology allows for Chinese government espionage and poses a threat to national security. Senior U.S. officials have traveled the globe, urging allies not to include Huawei's technology in their 5G networks. But the effort has been largely unsuccessful, particularly after the United Kingdom announced in January it would allow Huawei to build noncritical pieces of its 5G network. That decision was met with scorn by lawmakers on Capitol Hill. Still, Rubio and Cardin warned that OMB needs to produce the regulation cautiously and carefully. “We are concerned that if the regulatory implementation language fails to adequately consider small businesses, this process could not only result in an ineffective implementation of the prohibition, but also be both harmful and costly to thousands of small federal contractors,” they wrote. https://www.fifthdomain.com/congress/capitol-hill/2020/05/05/proposed-rule-banning-chinese-tech-needs-to-consider-small-contractors-senators-warn/

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/

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

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/

DEFENSE LOGISTICS AGENCY Point Blank Enterprises Inc., Pompano Beach, Florida, has been awarded a maximum $81,265,600 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for body armor. This was a competitive acquisition with five offers received. This is an 18-month base contract with two one-year option periods. Location of performance is Florida, with a Nov. 30, 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 agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1254). Arjo Inc., Addison, Illinois, has been awarded a maximum $47,500,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for medical equipment and accessories for the Defense Logistics Agency electronic catalog. This was a competitive acquisition with 115 responses received. This is a five-year contract with no option periods. Location of performance is Illinois, with a May 3, 2025, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-20-D-0038). NAVY General Dynamics Electric Boat Corp. (GDEB), Groton, Connecticut, is awarded $60,594,296 for a cost-plus-fixed-fee contract to provide U.S. Trident II Strategic Weapon System (SWS) ship alterations and United Kingdom SWS ship alterations for Strategic Systems Program shipboard integration installations. Work will be performed in Bremerton, Washington (29%); Groton, Connecticut (24%); Kings Bay, Georgia (24%); Bangor, Washington (9%); Cape Canaveral, Florida (7%); Norfolk, Virginia (3%); Washington, D.C. (2%); Faslane, Scotland (1%); and Plymouth, England (1%). Work is expected to be complete by April 2024. The maximum dollar value, including the base period and two option years, is $60,594,296. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $8,511,473; other procurement (Navy) contract funds in the amount of $8,534,755; fiscal 2020 research, development, test and evaluation (Navy) contract funds in the amount of $3,171,978; and United Kingdom funds in the amount of $2,098,018 are being obligated at time of award. Funds in the amount of $8,511,473 will expire at the end of the current fiscal year. This contract was a sole-source acquisition in accordance with 10 U.S. Code 2304(c)(1) and (4). Strategic Systems Programs, Washington, D.C., is the contracting activity (N-00030-20-C-0028). Virginia Pilot Association, Virginia Beach, Virginia, is awarded an $8,175,544 firm-fixed-price, indefinite-delivery/indefinite-quantity contract to provide support services to assist with the navigation of ships for Commander, Navy Region Mid-Atlantic Port Operations Division. All work will be performed in Norfolk, Virginia, and is expected to be complete by May 2025. This contract will include a 60-month base ordering period with an additional six-month ordering period option pursuant of Federal Acquisition Regulation 52.217-8; an option to extend services, which if exercised, will bring the total value to $9,058,663. The base ordering period is expected to be completed by May 2025; if the option is exercised, the ordering period will be completed by December 2025. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $50,000 will be obligated to fund the contract's minimum amount and funds will expire at the end of the current fiscal year. One source was solicited for this non-competitive, sole-source requirement in accordance with Federal Acquisition Regulation 6.302-1, and one offer was received. Naval Supply Systems Command Fleet Logistics Center Norfolk, Contracting Department Norfolk, Virginia, is the contracting activity. ARMY KVG LLC, Gettysburg, Pennsylvania (W564KV-20-D-2002); Crowley Government Services Inc., Jacksonville, Florida (W564KV-20-D-2004); Agility International Inc., Alexandria, Virginia (W564KV-20-D-2003); Maersk Line Ltd, Norfolk, Virginia (W564KV-20-D-2005); Aecom Management Services Inc., Germantown, Maryland (W564KV-20-D-2006); and American Roll-on Roll-off Carrier Group, Parsippany, New Jersey (W564KV-20-D-2007), will compete for each order of the $49,010,000 contract for the transportation of equipment, cargo and passengers within the European Command area of operations. 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 May 9, 2023. The 409th Contracting Support Brigade, Kaiserslautern, Germany, is the contracting activity. The Lighthouse for the Blind, St. Louis, Missouri (W81XWH-19-D-0008); Atlantic Diving Supply Inc.,* Virginia Beach, Virginia (W81XWH-19-D-0007); American Purchasing Services LLC,* Miramar, Florida (W81XWH-19-D-0006); and TQM LLC, St. Charles, Missouri (W81XWH-19-D-0009), will compete for each order of the $45,000,000 contract for sets, kits and outfits to supply complete medical, surgical, pharmaceutical, dental, laboratory and veterinary equipment and material sets. 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, 2024. U.S. Army Medical Research Acquisition Activity, Fort Detrick, Maryland, is the contracting activity. Raytheon Co., Dulles, Virginia, was awarded a $27,472,296 hybrid (cost-no-fee, firm-fixed-price) contract to provide technical expertise, system operators, maintenance and life-cycle support for the sustainment, operations and support management of numerous training aids, devices, simulators and simulations. Bids were solicited via the internet with three received. Work will be performed in Kuwait, with an estimated completion date of Dec. 31, 2023. Fiscal 2020 defense overseas contingency transfer funds in the amount of $5,000,000 were obligated at the time of the award. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-20-C-0031). MISSILE DEFENSE AGENCY Davidson Technologies,* Huntsville, Alabama, is being awarded a modification in the amount of $20,696,405 to previously awarded indefinite-delivery/indefinite-quantity (ID/IQ) contract HQ0147-19-D-0004. The contract value is increased from $2,437,491 to $23,133,896. Under this contract the contractor will continue to develop a cyber-secure information technology infrastructure that allows users to access data via a virtual desktop infrastructure. The work will be performed in Huntsville, Alabama. The ordering period of the ID/IQ is May 23, 2019, to May 22, 2024. A second task order award in the amount of $12,200,000 is being issued at this time. Fiscal 2020 research and development funds in the amount of $12,200,000 are being obligated on the task order award. The original award was made under Special Topic Broad Agency Announcement (BAA) number HQ0147-17-S-0002 that was posted to the Federal Business Opportunities website to solicit white papers related to advanced research technology and development in accordance with Federal Acquisition Regulation 6.102(d)(2)(i) to meet full and open competition requirements. The government received 26 white papers in response to the BAA and selected seven from which proposals were requested. This original award results from one of seven proposals received. The Missile Defense Agency, Redstone Arsenal, Alabama, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2175622/source/GovDelivery/