Nouvelles

By: Andrew Chuter LONDON – Adopting a new hybrid procurement system could save Britain's Ministry of Defence billions of pounds and get cutting edge technology in the hands of troops faster, a top American satellite communications company argued to the parliamentary Defence Committee. Written evidence from Viasat's U.K. arm advocating a shake-up in British procurement processes was published by the committee May 13 as part of its inquiry into the procurement and prosperity aspects of the country's defense industrial policy. Top of the list of proposals submitted by the company is a hybrid approach to procurement that saves money and leads to experimentation to deliver missions faster, said Viasat UK Managing Director Steve Beeching in an interview with Defense News following publication of the evidence. “We need a hyrid process with a platform-centric approach for very long lead, complex structural equipment elements," said Beeching, adding that more agile,, adaptive procurement for technology is required to meet the mission threat. "At the end of the day buying outdated technology doesn't deliver the mission,” Beeching said. The hybrid idea is among a raft of potential procurement changes proposed by Viasat. The company also advocated for ‘test before you buy' solutions from industry to reduce MoD costs and risk; building trusted partnerships between government and the private sector to drive information advantage; sharing risk and design obligations, thereby alleviating the burden on existing program processes; and executing an outcomes-based assessment program. The proposals come as the company is considering a potentially significant investment in the U.K. From a U.K. base near Farnborough, southern England, Viasat has a growing presence in the defense and security sector providing UHF satellite communications, tactical data system, sovereign information assurance and other services. It is currently considering investing about £300 million, or $366 million, in the U.K. and doubling its workforce of some 80 people with additional network and cyber personnel. Viasat, which is headquartered in Carlsbad, California, said a change of direction on procurement in the upcoming integrated review of defense and security could bring big rewards for government, the military and the domestic defense industry. “The 2020 strategic defense and security review will, if carried out correctly, give the MoD an opportunity to save billions of pounds, end complex procurement procedures and ensure that U.K. armed forces have available the most up-to-date equipment,” Viasat said in its evidence. “This will help to meet the rapidly changing adversarial environment the U.K. is facing. The review must provide a process to deliver a stronger industrial base, with more UK jobs at higher skill levels, achieving greater foreign investment and opportunity for exports,” the company told the committee. “To improve, the MoD needs to simplify the complexity of its huge defense organization into elements that can deliver change for the benefit of the nation, troops and way of life. Behavioral challenges occur where the MoD manages risk and outcomes as the primary objective [to keep the nation safe], but to move forward requires risk-taking,” said the evidence. The MoD's performance has been heavily criticized over many years for late delivery and cost overruns; although often the fault lays with government or the military rather than procurement officials. Despite several efforts to reform procurement, most recently through the Levene and Gray reviews, the right remedy to the problem has been elusive, despite some performance gains. Now, the new integrated defense review, virtually paused for the next few months as a result of the COVID-19 crisis, is likely to have another go at getting it right. Beeching, said that the present procurement policy was failing to produce the required results. “Current procurement procedures have yielded program delays, overspending and higher risks to the MoD. We feel very strongly that a more agile, fused-hybrid approach is needed to procure the appropriate systems and services required to keep pace with technology advancement. By modernizing the procurement process, MoD can work toward better processes to keep the nation safer,” said Beeching. “Its about approach and behaviors. We are not advocating stripping everything apart,” he said. With the COVID-19 crisis grabbing most of the government's attention, a major overhaul of defense procurement may not be on the list of priorities. Beeching, though, said if you wait for the perfect time it will never exist. “The lessons we are learning through things like COVID-19, through other things that are happening in the world, make more imperative that an achievable plan like the one we are proposing moves forward. It will give us more options to get the required capabilities to our service men and women, the government and the cabinet office much quicker than we do today,” he said. https://www.defensenews.com/global/europe/2020/05/14/defense-firm-advocates-hybrid-procurement-system-to-save-billions-in-the-uk/

By: Meagan Metzger In today's crisis-stricken world, it is heartening to see leaders recognizing the importance of government support for innovative, private sector solutions to the problems facing the defense industry. For the Department of Defense, reforming policies and refocusing priorities so that commercial tech can be successfully implemented to support the defense industry's mission is essential. The DoD's endorsement not only encourages emerging tech startups to consider government compliance and scale in their business models from the very beginning; it also protects our national security — and service members in uniform — by putting the most innovative technology into play. But creating more opportunities for commercial tech companies to secure government contracts is only the beginning. For government agencies to successfully take advantage of innovative tech from the private sector, a few things need to happen — and the sooner, the better. First, the government needs to look beyond legacy contracts. As has been noted by venture capital leaders, the announced provisions of the coronavirus relief legislation, the CARES Act, “to streamline the Defense Department contracting process” currently apply only to contracts worth $100 million or more. This excludes emerging commercially successful tech companies that could have a significant impact at the government level. Separate, though related, are needed reforms to the Small Business Innovation Research program. The National Defense Authorization Act for fiscal 2020 provides additional SBIR flexibility for small businesses that are more than 50 percent owned by venture capital, but the DoD has yet to fully promulgate this new flexibility authority. Until eligibility standards are adjusted, the DoD is missing the chance to work with proven, VC-backed companies. Of course not all commercial tech companies are equipped to support government missions; and to ignore the importance of a rigorous evaluation process is even more harmful than ignoring commercial tech all together. Finding emerging tech is easy. Evaluating and equipping tech companies for success in government is hard, particularly when national security is a critical concern. The COVID-19 crisis has made it even more apparent that government agencies need to be able to implement tech solutions quickly and trust that they will perform as expected. A tech company with proven success in the private sector may draw the government's attention and show that it can deliver, but there are other equally important indicators to consider when determining if a company is capable of performing as expected at the government level. The Pentagon, like any government agency, must rely on data-backed advice and expertise to identify which commercial tech solutions are most likely to succeed in the federal market. Finding technology companies should not be a quantity play, but focus more on fit and quality. Moving fast requires working with private sector partners who have experience vetting tech companies for government contracts, which we've seen leaders do, like Space and Missile Systems Center's Air Force Col. Russell Teehan and the head of Air Force Program Executive Office Digital Steven Wert. Partners that are federally focused — with deep knowledge of government problem sets and missions — can identify which tech companies are viable technically and will be viable in the federal market. Assessing tech's viability requires specific experience evaluating a set of qualitative characteristics unique to this market, in addition to the typical “can they work with government" questions like: “Where is the code compiled?” Government agencies should also look to VCs and accelerators that can specifically guide tech companies through the government market contracting process and equip them to succeed in the long term. For instance, in 2019, the United States Air Force worked with Dcode to scout technology for the service's Multi-Domain Operations Challenge, and seven of the 30 finalists were companies that had completed the Dcode accelerator to prepare for success in the federal market. Supporting these tech companies requires more than just a singular contract award. To get over the “valley of death,” companies have to understand everything from compliance to how to staff, rework operational processes and market effectively, to name a few. There is no question that working with the right emerging tech companies is imperative for the DoD and other government agencies. But at a moment in history when time is particularly of the essence, there is no room for trial and error when it comes to identifying which tech companies can meet the government's specific needs. By working with private sector partners that have extensive government expertise and proven results, the DoD can confidently implement innovative technology that addresses its most critical needs in a time of crises and well into the future. Meagan Metzger is the founder and CEO of Dcode. She also serves on an advisory board for Booz Allen Hamilton, and another advisory board for the Defense Entrepreneurs Forum. She previously worked as chief operating officer of a mobile and cloud company, as well as chief strategy officer at an IT consultancy. https://www.defensenews.com/opinion/commentary/2020/05/14/choosing-the-right-commercial-tech-for-government/

t's harder to win business amid a pandemic, said one-third of industry respondents in a Defense One reader survey. Federal contractors and private-sector workers say the coronavirus pandemic is hurting business and their ability to compete for government work, a new survey of Defense One readers has found. More than 75 percent said COVID-19 had a moderate, major, or extreme impact on their company's day-to-day operations. About 22 percent said the virus had a minimal impact; 2 percent, no impact. Nearly 60 percent of the respondents said coronavirus has forced them to slow or pause production. Nearly 40 percent said their business has seen disruptions to its cash flow. Defense One commissioned the survey, which was conducted by Government Business Council, a division of Defense One's parent company, Government Executive Media Group. The survey was conducted May 8-14 and received 677 responses, yielding a 5 percent margin of error. Of those, 313 self-identified as a government contractor or private sector employee. Related: 62% Disapprove of Trump's Coronavirus Response, Reader Survey Finds In March, the Pentagon began paying its contractors more money up front so these large firms could send more money to the smaller companies that make up their vast and diverse supply chains. Collectively, companies have sent or pledged to send billions of dollars to their suppliers in a quicker fashion. Still, Ellen Lord, defense undersecretary for acquisition and sustainment, said last month that she was expecting a three-month slowdown in weapons deliveries as companies faced shutdowns and modified their processes and procedures to comply with social distancing and other guidelines. About 30 percent of contractors and private sector workers said their business has experienced supply-chain disruptions. While more than one-third of respondents said social distancing has hurt their company's ability to compete for government contracts, more than half said social distancing has made no difference in their company's ability to win contracts and 12 percent said restrictions have helped their company's competitive advantage. More than 17 percent said their business has had to lay off employees; 18 percent said their companies have furloughed workers. One-quarter of respondents said lack of access to senior officials and decision makers and the inability to attend networking events has affected their business. With conferences, trade shows and other in-person events on hold indefinitely, trade associations and event organizers have looked for virtual ways to replicate not only speaker presentations, but the sideline discussions and other types of networking that many consider essential to doing business in the defense sector. “Your ability to pull somebody off the stage coming off a panel, the ability to ask a question in the question-and-answer period in this environment, is a little bit challenging,” Hawk Carlisle, a retired Air Force general who is CEO of National Defense Industrial Association, said in an interview late last month. “It is having an effect and I do believe the longer this goes on it will continue to have an effect.” This week, NDIA, which represents 1,700 large and small companies and has 70,000 individual members, became the first to transform a large conference and trade show into a fully virtual conference. Typically, its SOFIC event is held in Tampa, near the U.S. Special Operations Command headquarters. This year, the speeches and panel discussions were broadcast online. What's more, the organization facilitated meetings between companies and government officials. NDIA, which usually hosts dozens of events around the country each year, is considering new ways to hold its gatherings, including hosting hybrid events, with some people in attendance and others attending virtually, Carlisle said. https://www.defenseone.com/business/2020/05/coronavirus-hampering-defense-contractor-operations-reader-survey-finds

By David McLaughlin and Anthony Capaccio There's a $17 billion pot of money in the pandemic aid package for companies vital to national security -- and no one seems to want it. The $2 trillion rescue package Congress adopted in late March includes loans and loan guarantees specifically for companies “critical to maintaining national security.” The funds at first were seen as largely directed at Boeing Co., which at the time had been pleading for a government bailout. But after selling $25 billion in bonds to investors, the aircraft maker turned down the aid, which would have come with strings attached that it didn't like. With the $17 billion up for grabs, the U.S. defense industry is asking the Trump administration to change the criteria for getting some of it, arguing that the terms are too strict. The Treasury Department, which has sole authority over the $17 billion, has limited the companies that qualify to those whose work is designated DX, which means it ranks highest on the military's list of national priorities, or to companies that have facilities with top-secret security clearances. Only about 20 companies applied by the May 1 deadline, according to the Defense Department. There are about 300,000 companies in the Pentagon's contractor supply chain. Earlier: Defense Firms to Vie for Virus Aid With Boeing Weighing Options “What we're hearing across the board is that the restrictions and requirements on the money are pretty onerous, and a majority of companies just can't apply for the money,” said Hawk Carlisle, president of the National Defense Industrial Association, which represents defense contractors. It's another example of the Trump administration's struggle to help businesses that have been decimated by the pandemic. The initial round of $349 billion aimed at small businesses sparked outrage after large restaurant chains, a professional basketball franchise and numerous publicly traded companies were able to get money while mom-and-pop businesses were shut out. Treasury has approved about $25 billion out of the $35 billion that Congress allocated for payroll assistance to airlines and cargo carriers. Earlier: American Gets Most as Biggest Airlines Win Bulk of U.S. Aid On Tuesday, Democratic Senator Maria Cantwell of Washington asked Treasury Secretary Steven Mnuchin to broaden the criteria for qualifying for loans and reopen the application process. “Treasury's implementation of the loan program has not adequately addressed the needs of the aerospace supply chain and its workforce, which is fundamental to America's industrial base,” she wrote. It's not just the defense industry raising concerns. Ellen Lord, the Defense Department's top acquisition official, told reporters last month that Treasury's criteria may have prevented companies with the greatest need from qualifying. “We have talked with them several times; they have reached out to us,” Lord said. “I am not sure companies with DX-rated contracts are perhaps the ones that have the most critical needs.” She said suppliers already have been giving DX programs priority, which they are required to do under Pentagon rules. The Treasury Department didn't respond to requests for comment. Congress stipulated that companies receiving the national-security loans must provide the government with warrants, equity or senior debt securities and agree to limits on dividends, stock buybacks and executive pay. But it's Treasury's additional criteria that defense firms say are too narrow. It restricted loans to two groups: those with a contract with the DX rating or those with facilities that have top-secret security clearances. Eric Fanning, president of the Aerospace Industries Association, whose members include Lockheed Martin Corp. and BAE Systems Plc, said the criteria should be broadened to cover more companies. A Pentagon spokesman, Air Force Lieutenant Colonel Mike Andrews, said in an email that the Defense Department has determined that only a few programs required a DX rating, but opted to stop releasing their names as of December 2018. Before that, the Pentagon had said there are about a dozen DX programs, including those for the Minuteman III ICBM program, the B-2 bomber, presidential aircraft, missile warning satellites and nuclear-missile submarines. Some of the major companies involved are Boeing, Lockheed Martin, Northrop Grumman Corp. and General Dynamics Corp. The Pentagon doesn't track the number of companies that possess top-secret clearances, but only the number of facilities cleared at that level, spokeswoman Cynthia McGovern said in an email. Like Boeing, the large companies that might qualify for the Treasury loans are able to tap the capital markets to meet their financing needs, especially now that the Federal Reserve is pumping hundreds of billions of dollars into debt markets by buying corporate bonds and bond funds. Earlier: Here's Where $881 Billion in U.S. Aid Went in Month of Spending The Pentagon is helping by increasing progress payments by $3 billion and speeding up those payments to contractors, which range from the biggest makers of weapons systems to the more numerous, lower-tier suppliers of everything from software to uniforms. But many contractors also rely on commercial deals to supplement their government work. With the airline industry facing a sharp and lengthy contraction, aviation suppliers could see a greater need for rescue financing in the near future, said Fanning of the aerospace industry group. Boeing, for example, in late April said it's shrinking its workforce by about 10%, or about 16,000 jobs, to conserve cash. General Electric Co. is cutting about 13,000 jobs in its jet-engine operation. Spirit AeroSystems Holdings Inc., a supplier to Airbus and Boeing, is also cutting jobs. “We don't have a sense yet of where the stress points are in the industrial base,” Fanning said. “The health of supply chains can take a while to sort out and show where there are problems.” https://www.bloomberg.com/news/articles/2020-05-14/a-17-billion-pot-of-national-security-stimulus-aid-goes-begging

Michael Bruno Companies across the board are slashing costs, preserving cash, and trying to adjust to a new normal after the novel coronavirus throttled down business prospects. But there is one area they are sure to spend even more money on in the coming years as industry regroups after COVID-19. Listen in as Aviation Week and Accenture discuss what to watch for in technology investments. https://aviationweek.com/podcasts/check-6-accenture/podcast-what-ad-companies-should-invest-after-covid-19

The lesson from this history is simple. Cutting defence spending in times of austerity is a bipartisan affair in Canada. This is owing less to politics than arithmetic. DND's budget –which typically ranges from 1/5 to 1/4 of total federal departmental discretionary spending –is too big to be excluded from any serious spending restraint initiative. This is well understood by Liberals, Conservatives and the Finance Department. The COVID-19 Recession and its Impact No one knows how deep or how long the COVID-19-induced recession will be. But every serious analyst agrees it will produce the sharpest drop in output since the Great Depression. The International Monetary Fund, for example, projects a 6.2 per cent annualized decline in GDP for Canada,1nearly double that of the 2009 recession. And already the government's fiscal response is without precedent and will lead to the largest deficit in postwar Canadian history (at least 10 per cent of GDP, or over $200 billion). This does not mean that Ottawa will snap into austerity mode next year. The economy will likely be too weak for that kind of action and cutting government spending is not in the Trudeau government's DNA to begin with... One big difference between now and the past is that there will be enormous pressure on Ottawa after the recession to boost spending in a wide range of areas which have been exposed in the pandemic. These include public health funding, medical research, pandemic prevention and mitigation, the social safety net, and industries particularly hard hit during the recession. There are also Liberal election campaign commitments from 2019 to honour –almost none of which had been implemented pre-pandemic –of which national defence is conspicuously absent. ...this could produce a perfect storm for Strong, Secure, Engaged (SSE). This was always a big risk associated with a defence policy that had its funding ramped up gradually over many years. As the Harper government amply demonstrated, it is relatively easy to reduce or eliminate the rate of planned increases to defence funding –the government took almost no flak for doing so in 2010. Making matters worse, DND has failed to come anywhere near meeting the spending trajectory profiled in SSE, as David Perry has analyzed thoroughly. Which means flattening DND's budget ramp is even more tempting for any government in austerity or even re-prioritization mode. Would a change in government matter here? Unlikely. While the Conservatives are more committed to national defence and the Canadian Armed Forces than the Liberals, they would likely see deficit reduction as their top priority, and it is virtually impossible to have meaningful expenditure restraint that doesn't involve national defence [what the Harper government did from 2010 on]. Conclusion Over the past generation, recessions and the fiscal consolidation that has followed them have had a seriously negative impact on DND's budget. The COVID-19 recession could be the most severe Canada has faced in at least 40 years. It has already resulted in the largest peacetime deficit in Canadian history. And, because of the pandemic, government priorities have changed radically overnight. The future for SSE and its associated funding does not look bright. National Defence probably has a year or two before the crunch hits. Now is therefore the time for strategic thinking and serious priority setting among the political, public service and miitary leadership to ensure that the 2020s don't become another decade of darkness. Eugene Lang is Adjunct Professor, School of Policy Studies, Queen's University, and Fellow, Canadian Global Affairs Institute. He was chief of staff to two ministers of National Defence in the Chrétien and Martin governments and served as an official in the Department of Finance. The 2020s most certainly will be “another decade of darkness”. It is not improbable that the Canadian military, if the Liberals win the next election, will effectively end up as a constabulary/militia force with domestic response to natural disasters of various sorts as its primary function along with very token commitments to UN peacekeeping missions. Bye bye to serious numbers of new RCAF fighters, to serious numbers of new RCN frigates, and to the needed large funding to renew NORAD's North Warning System [see this post: “So Will the Canadian Government Put Some Big Bucks into Modernizing NORAD's North Warning System?“]. And bye bye to any meaningful military participation in NATO. Canada will then finally be defenceless against help from the US ( the following quote is from the last sentence of this earlier CGAI paper's Executive Summary: “Throughout its 60-year existence, NORAD has been Canada's “defence against help.”). Any American administration will have no hesitation in demanding the use of Canadian territory and waters for its own defence purposes if our efforts fall well below what the US thinks necessary. US Air Force bases at Cold Lake, Yellowknife, Goose Bay and a US Navy one at St. John's anyone? Take a look at this as an example of an increasingly prevalent Canadian progressive view; and Justin Trudeau's “base” is progressive to the max: Spending $19 billion on fighter jets won't fight COVID-19 or climate change Instead of buying a new weapons system, the federal government should disarm and invest in a Green New Deal There it is. Plus earlier from Mr Lang: Is the “business Liberal” extinct? By the way the photo at the top of the post is of the Avro CF-100 Canuck interceptor, the first jet fighter developed in Canada–to defend against Soviet bombers...and US help. Mark Collins

NAVY Lockheed Martin Corp., Owego, New York, is awarded a $904,800,000 modification (P00011) to a previously awarded firm-fixed-price, cost-plus-fixed-fee contract N00019-19-C-0013. This modification provides for the production and delivery of three MH-60R Seahawk maritime aircraft for the Navy and 21 MH-60Rs for the government of India. Work will be performed at Owego, New York (52%); Stratford, Connecticut (40%); and Troy, Alabama (8%), and is expected to be complete by September 2024. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $113,100,000 and Foreign Military Sales funds in the amount of $791,700,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Hunter Pacific Group,* San Diego, California, is awarded a $30,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, architect-engineering contract for cost engineering, value engineering and scheduling services in the Naval Facilities Engineering Command (NAVFAC), Southwest Area of Responsibility (AOR). Work will be performed at various Navy and Marine Corps facilities and other government facilities within the NAVFAC Southwest AOR including, but not limited to: California (87%); Arizona (5%); Nevada (5%); Colorado (1%); New Mexico (1%); and Utah (1%). Work provides for cost estimates and other cost engineering services in support of analyses, reports, designs and change orders. Cost engineering services may include construction cost reduction evaluations and recommendations, bid analyses and verifications, validations of DD Form 1391 scope/cost estimate, peer review of cost estimates, review and technical analysis of contractor change order cost proposals and assistance with claims, litigations and negotiations with boards/committees. Value engineering services shall include facilitating and forming multi-discipline technical teams to conduct value engineering and/or function analysis concept development (FACD) workshops for a variety of projects. Services in support of value engineering and FACD workshops may include site investigations, preparation and/or review of engineering studies/reports, cost estimates, facility and infrastructure assessments, risk assessments, life cycle cost engineering and/or total ownership cost analyses, and schematic layouts/sketches. Scheduling shall be in support of analyses and change orders and may include preparation of schedules and construction cost loaded schedules, review/analysis of base line contractor schedules and schedule updates, review/analysis of contractor change orders, time impact analysis and assistance with claims, litigations and negotiations with boards/committees. Work is expected to be complete by April 2025. No task orders are being issued at this time. Fiscal 2020 operations and maintenance (O&M) (Navy) contract funds in the amount of $5,000 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 (Navy) and O&M (Marine Corps). This contract was competitively procured via the Navy Electronic Commerce Online website and four proposals were received. The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-20-D-0614). PSI Pax Inc.,* California, Maryland, is awarded a $29,286,410 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract. Work will be performed in Patuxent River, Maryland, and provides administrative, business and financial services such as data entry accounting processes, interface error research and analysis, process management, deficiency identification, testing of system changes, professional and analytical support, liaison support, funds management, financial tracking, internal and external data calls, document and records management, specialized analytical support in meeting financial systems requirements, assessing financial systems relative to data integrity, corporate and user reporting requirements as well as centralized support of travel related processes to include help desk support for the entire Naval Air Systems Command. Work is expected to be complete by June 2025. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was competitively procured as a small business set-aside via an electronic request for proposal; five offers were received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-20-D-0073). Mustang Technology Group LP, doing business as L3 Mustang Technology, Plano, Texas, is awarded a $19,082,000 fixed-price-incentive-firm-target modification to previously awarded contract N00024-19-C-5313 for 658 rounds of 57mm MK 332 High Explosive-4 Bolt Guided (HE-4G) Cartridge ammunition. Work will be performed in Plano, Texas (78%), and Cincinnati, Ohio (22%), and is expected to be complete by September 2021. Fiscal 2020 and 2019 procurement of ammunition, (Navy and Marine Corp) funding in the amount of $19,082,000 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. L3 Harris Technologies Inc., Anaheim, California, is awarded a $12,732,754 cost-plus-fixed-fee contract modification (P00030) to exercise options under previously awarded and announced contract N00030-18-C-0001. Work will be performed in Anaheim, California (71%); Cape Canaveral, Florida (23%); Washington, D.C. (3%); Bremerton, Washington (1%); Norfolk, Virginia (1%), and Kings Bay, Georgia (1%). Work will provide services and support for Flight Test Instrumentation and is expected to be complete by August 2022. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $2,968,016; fiscal 2020 weapons procurement (Navy) funds in the amount of $9,332,143; and fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $200,000 are obligated on this award. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $2,968,016 will expire at the end of the current fiscal year. This contract modification is awarded to the contractor on a sole-source basis under 10 U.S. Code 2304(c)(1) and was previously synopsized on the Federal Business Opportunities website. The Strategic Systems Programs, Washington, D.C., is the contracting activity. IDSC Holdings LLC, Snap-on Industrial, Kenosha, Wisconsin, is awarded an $11,088,933 firm-fixed-price, indefinite-delivery/indefinite-quantity contract. This contract procures up to 2,064 toolboxes containing 1.423 different types of commercial tools in support of initial outfitting associated with F-35 low rate initial production and maintenance. Work will be performed in Kenosha, Wisconsin, and is expected to be complete by September 2021. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was competitively procured via an electronic request for proposal and four offers were received. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-20-D-0025). Northrop Grumman Systems Corp., San Diego, California, is awarded a $9,162,847 modification (P00002) to cost-plus-fixed-fee order N00019-19-F-0280 against previously issued basic ordering agreement N00019-15-G-0026. This modification provides systems engineering and program management support for the development, integration, test and delivery of two radar altimeters and two integrated avionics units in support of the BQM-34S Firebee High Performance Aerial Target System, BQM-74E target drones and the Aerial Targets Program Office. Work will be performed in Endicott, New York (62%); San Diego, California (37%); and Clearwater, Florida (1%). Work is expected to be complete by January 2022. Fiscal 2018 weapons procurement (Navy) funds in the amount of $4,472,396 and fiscal 2019 weapons procurement (Navy) funds in the amount of $4,690,451 will be obligated at time of award, $4,472,396 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Independent RT Center LLC, Cibolo, Texas, is awarded $8,029,638 for firm-fixed-price delivery order M67854-20-F-5018 under previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contract M67854-20-D-5000 with a maximum ceiling of $62,500,000, for the Rough Terrain Container Handlers Service Life Extension Program. Work will be performed in Cibolo, Texas, and is expected to be complete by January 2030. Fiscal 2019 Congressional funds in the amount of $3,066,228 and fiscal 2020 procurement (Marine Corps) funds in the amount of $4,963,410 are being obligated and will expire Sept. 30, 2021. This contract was competitively procured via the Federal Business Opportunities website and two offers were received. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-20-D-5000). Huntington Ingalls Inc., Newport News, Virginia, is awarded a $7,400,000 not-to-exceed, fixed-price incentive, undefinitized change order modification to contract N00024-15-C-2114 for the installation of Consolidated Afloat Networks and Enterprise Services AN/USQ-208B (V) 5 Local Area Network drops. Work will be performed in Newport News, Virginia, and is expected to be complete by May 2022. Fiscal 2018 shipbuilding and conversion (Navy) funding in the amount of $3,700,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding, Conversion and Repair, Newport News, Virginia, is the contracting activity. ARMY Perspecta Enterprise Solutions LLC, Herndon, Virginia, was awarded an Other Transaction Authority agreement with a ceiling of $237,243,000 to develop, integrate, deliver, operate and maintain an enterprise capability for Army training and education information. Bids were solicited via the internet with three received. Work will be performed in Herndon, Virginia, with an estimated completion date of May 17, 2024. Fiscal 2020 research, development, test and evaluation (Army) funds in the amount of $14,500,000 were obligated at the time of the award. U.S. Army Contracting Command, Newark, New Jersey, is the contracting activity (W15QKN-20-9-1118). Charles River Laboratories, Wilmington, Massachusetts (W81XWH-20-A-0003); Envigo RMS LLC, Indianapolis, Indiana (W81XWH-20-A-0004); and The Jackson Laboratory, Bar Harbor, Maine (W81XWH-20-A-0005), will compete for each order of the $25,000,000 firm-fixed-price contract to supply small laboratory research animals and related services. 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 July 8, 2025. U.S. Army Medical Research Acquisition Activity, Fort Detrick, Maryland, is the contracting activity. Quantitech Inc., Huntsville, Alabama, was awarded a $17,686,572 modification (000237) to contract W31P4Q-16-A-0010 for programmatic support for the Utility Helicopters Project Manager's Office. Work will be performed in Huntsville, Alabama, with an estimated completion date of May 14, 2021. Fiscal 2020 Foreign Military Sales (Australia); other procurement (Army); and research, development, test and evaluation (Army) funds in the amount of $17,686,572 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Mantle-Plocher JV,* Worden, Illinois, was awarded a $14,793,000 firm-fixed-price contract for placement and leasing of modular facilities to support approximately 450 personnel at Scott Air Force Base. Bids were solicited via the internet with four received. Work will be performed at Scott Air Force Base, Illinois, with an estimated completion date of May 13, 2025. Fiscal 2020 operations and maintenance (Air Force) funds in the amount of $14,793,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-20-C-0021). Dawson Enterprises LLC,* Honolulu, Hawaii, was awarded a $10,431,915 firm-fixed-price contract for construction of utility infrastructure to support the installation of a modular paint booth and personnel building. Bids were solicited via the internet with one received. Work will be performed in Tucson, Arizona, with an estimated completion date of Nov. 5, 2021. Fiscal 2019 civil operations and maintenance funds in the amount of $10,431,915 were obligated at the time of the award. U.S. Army Corps of Engineers, Los Angeles, California, is the contracting activity (W912PL-20-C-0017). AIR FORCE Braxton Technologies LLC, Colorado Springs, Colorado, has been awarded a $31,399,226 cost-plus-fixed-fee contract modification (P00012) to contract FA8806-19-C-0003 for support and delivery network, infrastructure, hardware and architecture solutions under the Cross Mission Ground Communications Enterprise Corps (ECX). This contract award provides for cross-domain solutions, design, integration and rapid delivery team services. Work will be performed in Colorado Springs, Colorado, and is expected to be completed by May 17, 2021. This award is the result of a sole-source acquisition under the Small Business Innovation Research Program. The total cumulative face value of the contract is $55,387,870. Fiscal 2020 research, development, test and evaluation funds in the amount of $8,507,999 are being obligated at the time of award. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. The Corporation of Mercer University, Warner Robins, Georgia, has been awarded a $9,039,309 task order (FA8523-20-F-0029) on basic contract FA8523-20-D-0001 to provide Laboratory Intelligence Validated Emulators-Virtual-Constructive (LVC) closed-loop engineering test and evaluation of newly developed electronic warfare (EW) systems. This order provides integration of gold-standard Intelligence Community threat definitions into the Electronic Warfare and Avionics Integrated Support Facility, where LVC closed loop operational test – vertical testability demonstration simulations and testing will be conducted to inform the baseline capability and to identify growth areas for improving operational survivability, reliability and mission success of fielded EW systems in support of airborne U.S. warfighting elements. Work will be performed in Warner Robins, Georgia, and is expected to be completed by May 13, 2022. Fiscal 2020 operations and maintenance funds in the amount of $4,140,106 are being obligated at the time of award. The Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2187605/source/GovDelivery/

Posted on May 15, 2020 by Chris Thatcher In an appearance before the Commons finance committee on May 12, Parliamentary Budget Officer Yves Giroux suggested the federal deficit could vastly exceed the $252 billion he projected in mid-April as the government continues to unveil relief measures to help Canadians and businesses withstand the economic impact of the coronavirus pandemic. Most admit it is to too early to tell what that will mean for future military procurement and the government's 2017 defence policy, Strong, Secure, Engaged (SSE), but think tanks and defence analysts are nonetheless forecasting turbulence ahead. “Over the past generation, recessions and the fiscal consolidation that has followed them have had a seriously negative impact on DND's (Department of National Defence) budget,” wrote Eugene Lang, an adjunct professor with the School of Policy Studies at Queen's University and Fellow with the Canadian Global Affairs Institute, in a recent policy paper for CGAI. “The future for SSE and its associated funding does not look bright. National defence probably has a year or two before the crunch hits.” Christyn Cianfarani is more cautious, but the president and chief executive officer of the Canadian Association of Defence and Security Industries (CADSI) admits the “rumblings are there that we are naturally concerned. Anybody who knows their history will tell you that when federal governments have been in these deficit spending situations — and this is the largest since the Second World War — they typically will be looking for strategies to reduce that deficit in the long term and DND unfortunately is a target.” But pulling government funding from a sector that has weathered the COVID-19 storm reasonably well might be “counterintuitive,” she suggested. The sector “right now is one of the few that is able to contribute to the economy under this persistent pandemic environment ... If there are multiple waves of [the virus], defence will be one sector that actually can shoulder the ups and downs and return to remote operations if we get to that stage again.” “Pure play” defence companies with few or no ties to commercial aerospace and the travel industry have managed the risks well, she said. Most have so far avoided the workforce layoffs and temporary downsizing experienced in other sectors, though manufacturing has slowed to meet provincial health regulations. Some, in fact, have been hiring. “Aside from some localized instances of companies facing real challenges, I would say the overall health [of the sector] is not too bad,” she said. Following what she called a “choppy” roll out of COVID-19 related policies that cut across federal and provincial jurisdictions, defence companies have adapted. Some have retooled shop floors and supply chains to manufacture critically needed personal protective equipment (PPE). Others with government contracts have continued operations where possible, albeit at reduced levels to match restrictions at government facilities. Maintenance on some platforms such as submarines has halted. The federal government has been “very conscious of trying to keep the contracts moving and executing,” said Cianfarani. “For example, if you are in the Canadian shipbuilding program, you are still pushing forward. If you are part of that supply chain, that hasn't seen any tangible change in the expectations.” Furthermore, many smaller defence firms specialize in software development and cyber security, both of which remain in demand as governments and companies try to protect expanded networks that now include thousands of employees working from home. The greatest concern for members has been liquidity, she said. CADSI encouraged the Business Development Bank of Canada and Export Development Canada to set aside their traditional risk aversion to the defence sector as they work with private sector lenders to support access to capital. The Business Credit Availability Program includes loans of up to $60 million and guarantees of up to $80 million. “We are quite proud of making a big intervention on that,” she said. “It was supposed to be open for all businesses and, irrespective of ... whether you characterize certain businesses as higher risk than others, it is an incentive program at the federal level.” An essential service At the outset of the COVID-19 economic slowdown, CADSI was a vocal advocate for defence as an essential service and greater harmonization of federal and provincial policies, including the rules that allow embedded contractors to access Canadian Armed Forces facilities. As provincial governments now begin easing restrictions and take the first tentative steps to open their economies, the association is calling for guidance and common standards, especially for the use of protective masks, gloves and other clothing. Of particular concern are the rules for employees of companies that embed on Wings and Bases to provide training, platform maintenance, healthcare and other services. “Who has to wear protective health equipment in a DND facility and is it the same [federal standard] across different provincial jurisdictions?” said Cianfarani. “If Ontario decides you have to stand two metres apart and Nova Scotia doesn't have the same policy,” it will create confusion. “If you need a particular face mask to go onto a DND base to perform maintenance on their aircraft, what does that look like? If it is so specialized, can you help us procure it? Or, if it is not so specialized, can you give us a specification so we can ensure that we do have it when we get spooled up to work?” Likewise, what PPE do companies need to provide when DND and other government employees visit their facilities? DND has released some information on “what they are starting to classify as health equipment versus PPE,” she said. “If companies have that information, they won't get to a DND facility and be surprised by a piece of PPE they need or a standard of working they need to accommodate.” Made in Canada The economic repercussions of the pandemic likely won't be felt in the defence sector for some time. Cianfarani noted that some companies have found opportunity in the crisis and will increase investments in automation, big data and other elements of Industry 4.0 as they position for the future. “This is probably an acceleration of something that has been going on slowly in the background for quite sometime,” she observed. But the pandemic has opened the door to a renewed discussion about a national defence industrial strategy, an issue CADSI has been flagging for over a decade. Buying made-in-Canada defence and security platforms and systems is more expensive, but the past months have demonstrated that protectionism is “alive and well.” President Donald Trump in early April asked U.S.-based 3M to stop supply N95 masks to Canada. “The crisis has certainly given us and the government, and Canadians in general, a renewed interest in the concept of having sovereign capability,” she said. Shifting to a procurement culture that accepts the risks and costs of Canadian-built equipment won't happen quickly or easily — it took about seven years to study and adopt recommendations for Canadian key industrial capabilities, she noted — “but I really do think if there is any opportunity, it is probably now, because the shock is still very prevalent in everyone's mind.” https://www.skiesmag.com/news/canada-defence-industry-covid

By: Joe Gould WASHINGTON ― Four defense industry trade associations “strongly oppose" a handful of Pentagon-backed procurement reform proposals that they say would harm the defense industrial base, and they're asking Congress to reject them. Two of the proposals aim at controversial pricing practices used by TransDigm by requiring contractors to submit cost information for commercial items and by requiring contracting officers to conduct a commercial item determination for every procurement. Others would set a preference for performance-based contract payments and authorize the Defense Department to release or disclose detailed manufacturing or process data. The May 6 protest letter came from the Acquisition Reform Working Group — made up of the National Defense Industrial Association, American Council of Engineering Companies, the Computing Technology Industry Association and the Information Technology Industry Council — to the the House and Senate armed services committees. It comes as the panels were readying their drafts of the 2021 National Defense Authorization Act. The Pentagon has worked to monitor its network of suppliers from the economic shocks associated with the coronavirus pandemic and to protect suppliers by using emergency funding from Congress to speed payments and improve cash flow along the supply chain. The trade groups noted they represent “thousands of small, mid-sized, and large companies in addition to hundreds of thousands of employees that provide goods, services, and personnel to the Department of Defense,” and said the four proposals a “could have significant consequences for the defense industrial base.” Congress focused ire at TransDigm last year after the Defense Department's Inspector General found for $26.2 million in parts the military bought from TransDigm, it earned $16.1 million in excess profit. Transdigm was the only manufacturer of the majority of the parts, which let it set the market prices even for competitively awarded parts. Though DoD has argued its contractors need new latitude to make commercial item determinations and obtain cost or pricing information to prevent the excessive pricing TransDigm was accused of, the trade groups argue the TransDigm's actions weren't facilitated by an inappropriate reliance on improper commercial item determinations, or insufficient access to pricing data. “As illustrated by the TransDigm Group, Inc's pricing practices, generally once a conversion to a commercial product or commercial service is made, it is common for prices to increase and subsequent contracting officers find it difficult to obtain data necessary to determine price reasonableness and negotiate fair and reasonable prices on behalf of the taxpayer,” the department said in its proposal. Another proposal would require a contractor to submit uncertified cost information for commercial item proposals or contracts less than $2 million. The idea behind the reform is DoD wants to be able to get more insight into the costs of sole-source items and put itself in a more favorable position to negotiate with sole-source companies. Congressional hearings on TransDigm's excessive pricing showed Defense leaders need the authority to obtain the data “to the extent necessary to determine price reasonableness is paramount in ensuring that such excessive pricing practices are curtailed.” But the trade groups argue that levying the new regulations would “add a significant barrier to commercial item acquisition, reduce information sharing, further burden the system, and impede—rather than enable—the delivery of capabilities to the warfighter at the ‘speed of relevance'—all with little to no added protection for the government or the taxpayer." The trade associations also opposed DoD's legislation to set a preference for performance-based contract payments. The groups said a DoD proposal to “recouple” total performance-based payments to total cost incurred would reverse Congress's previous work to emphasize performance over cost and contradict a spate of defense acquisitions rules. DoD's argument is that it shouldn't be reimbursing a contractor more than its actual costs, or it “would result in negative levels of contractor investment,” and create a disincentive for contractors to deliver. Another disputed proposal would let DoD release detailed manufacturing or process data, or DPMD, pertaining to privately funded commercial or noncommercial items outside of the government to third parties seeking to compete against the original equipment manufacturer. It's the latest episode in a running game of tug-of-war between industry and DoD over intellectual property. While Congress has in recent years prodded DoD to set intellectual property strategies early in acquisition programs and negotiate for IP rights on a case-by-case basis, the trade groups argue the proposal would give DoD “an automatic default authority” and “eliminate the possibility of a negotiated solution.” https://www.defensenews.com/congress/2020/05/15/citing-transdigm-dod-seeks-new-acquisition-powers-and-trade-groups-oppose/