GAO Upholds BAE Systems Protest Of Truck Contract
The protest by BAE Systems of the truck contract awarded to Oshkosh was upheld yesterday by the GAO. Now the Army must decide how to proceed with...General Dynamics Wins Contract To Revive Land Warrior
The Army awarded General Dynamics a contract to provide support to the existing Land Warrior equipment. This program of building an integrated...FCS Cancellation Fallout
Filed under: Boeing, Business Line, Companies, Congress, Events, Federal Budget Process, IT, Restructuring, SAIC, Services, U.S. Army, development program, logistics, production program
The cancellation of the current Future Combat Systems (FCS) development contract was one of the cornerstones of the Obama Administrations 2010 defense budget. The program of new vehicles, unmanned aerial and ground systems, and the data links connecting them was estimated at over $160 billion. The Army still has a requirement for a upgrade to their combat brigades currently using the Eighties produced M1/M2 vehicles and the Styker Interim system. As such a new program was set up to replace FCS almost immediately after the contract with Boeing and SAIC was canceled.
Now the Army is concerned that the money planned for in the budget may not be available for this new program. At a minimum some of it will be needed to pay the termination fees related to the various contracts ended prematurely. They were ended at the convenience of the government so the contractors are entitled to payment for whatever work they had done and what it takes to close out the contracts. If the money doesn’t remain in the FCS line then the Army will be forced to fund it from other programs.
Congress in their mark up of the 2010 budget cut most of the money budgeted for this as they felt there were sufficient current funds to cover this. This may be a little too much penny save pound foolish. The Army knows fairly well what is needed and probably budgeted appropriately. The cost to other parts of the Army including the new modernization program may be quite high.
MRAP-ATV Contract Continues On Track
Filed under: BAE Systems, Business Line, Companies, Congress, Contract Awards, Department of Defense, Events, Federal Budget Process, Force Protection, Oshkosh Truck Corp, Proposal, Services, U.S. Army, U.S. Marine Corps, logistics, production program
The MRAP-ATV is a program to develop a lighter, more maneuverable Mine Resistant Ambush Protected vehicle for use in Afghanistan. The Army has been working on awarding a production contract by the end of this quarter. Reports indicated that that will happen and one or more companies who are participating in the current testing will receive an order.
The Army and other Services have invested a great deal of money in the last five years into these systems to counter the IED and mine threat in Iraq and Afghanistan. The vehicles due to their size and weight primarily are road bound and provide point-to-point transport. The rougher terrain in Afghanistan and lack of roads has led to the MRAP-ATV requirement. The program has moved fast as basically all of the vehicles proposed are existing systems.
The winner(s) will see a great deal of work quickly as the military hopes to ramp up production and quantities very quickly. The use of MRAP and their force mix are all undergoing study as the U.S. tries to fit them into its regular tactical organizations and doctrine.
Army Moves To Build New Generators
Filed under: Business Line, Companies, Contract Awards, Events, Fidelity Technologies, Pennsylvia, Services, States, U.S. Army, development program, logistics
Due to grounding issues generators provided by KBR led to the accidental deaths of several soldiers in Iraq as they went to take showers. The generators were powering hot water systems. The Army went ahead and designed new systems that are larger and have more sophisticated circuitry to prevent these issues. By centralizing power generation more fuel is saved as well as less individual generators are used.
Fidelity Technologies of Pennsylvania has begun to ramp up to produce these generators. The initial contract is for about $24 million and will produce over three thousand of the generators. In order to meet this new order the company is actually hiring personnel.
This shows that as programs end others start. Different priorities allow companies to move into niches that may not have existed before. This allows new business lines to develop and grow. Unfortunately the boom-or-bust nature of U.S. defense procurement can make this difficult for sustained growth or stability.
MRAP-ATV Moves Forward
Filed under: BAE Systems, Business Line, Companies, Congress, Contract Awards, Department of Defense, Events, Force Protection, Navistar, Oshkosh Truck Corp, Proposal, Protest, Services, U.S. Army, U.S. Marine Corps, development program, logistics, production program
In early March the Defense Department awarded a group of companies contracts to begin concept designs for the Mine Resistant Ambush Protected-All Terrain Vehicle (MRAP-ATV). Now it is being reported that the first production buy contracts may be awarded by May 1st. Crain’s Detroit Business says that the contracts had been delayed due to the short lived protest by Navistar. The Army plans to buy a small quantity of vehicles to do tests with and then order larger buys. The Defense Department had discussed in the past buying several of the proposed vehicles rather then focusing on just one.
This would mirror the experience had with the large MRAP vehicles bought for use in Iraq and Afghanistan to defeat the IED threat. Then due to the large quantities needed quickly several companies were able to win contracts. Part of this was that the U.S. military moved slowly first equipping engineering units and then the bulk of their infantry and other troops. This meant that the U.S.M.C and the Army bought different types for the missions. The MRAP-ATV will be used in Afghanistan where a lighter, more mobile off road vehicle is needed due to the rough terrain. This has been a more deliberate process then that used for the MRAP. Multiple contracts would allow faster equipping of units, but will also require a larger, more diverse logistical and training tail.
B.L. Harbert Wins Another Barracks Contract
Filed under: BL Harbert International, Business Line, Contract Awards, U.S. Army, logistics, training
The Birmingham Business Journal reports that B.L. Harbert construction company won an over $50 million contract to build barracks at FT Jackson, SC. As we wrote earlier Harbart has also recently won a contract to construct housing at FT Campell, KY. As the Army slowly moves units around due to BRAC and restructures its organization there is a demand for modern barracks and housing at various bases. Some of the troops are moving from overseas to the U.S. Further contracts of this type will most likely be awarded as FT Benning, Riley and Hood get ready for new units.
More on the Alaskan Missile Range Corruption Case
Filed under: Alaska, Congress, Contract Awards, Federal Budget Process, MDA, S&T, SMDC, U.S. Air Force, crime, development program, missile defense, space
We have written in the past about Mr. Cantrell, an manager at the Army’s Space and Missile Defense Command (SMDC), and his corruption scheme that will lead to his jailing on taking bribes from contractors in the past here and here. Now The Kodiak Daily Mirror has more details on how Mr. Cantrell used Alaskan Senator Stephens to build a range on Kodiak Island which allowed him to get the necessary work in order to generate the kickbacks. Read more
JLTV decision may be imminent
Filed under: Contract Awards, Department of Defense, U.S. Army, development program, logistics, production program
The JLTV will be the next generation utility vehicle for the US armed forces. It will supplant the ubiquitous HUMVEE and will incorporate the lessons of the last seven years fighting. The Army had planned to announce that three teams won development contracts which over the next two plus years would lead to a prototype last week. Now the decision has been delayed for at least a few more days. The ultimate contract would be worth tens of billions of dollars as their would be thousands of the vehicles produced. Most of the major US defense contractors are part of one team or another with a variety of smaller companies as this is one of the largest procurement programs in sight.
See this story at WJACTV.com and another at Rueters for more on the program. Defensenews.com is reporting, here, that delays are due to concern about protests.
Defense contract requirements to be loosened
Filed under: Commentary, Congress, Federal Budget Process, IT, Military Aviation, SETA, U.S. Army, development program, logistics, production program
One of the issues that faces any company trying to do business with the US DoD is that the personnel requirements are usually pretty stiff. This is especially true for SETA type work. The military is usually looking to hire experienced people with clearances. This is why you find so many retired military and federal workers as contractors. Getting a clearance has become an issue as the Federal government has been bogged down for years trying to clear people. The easiest way to get one is to join the military; or work for the government. These requirements also make it harder when you are trying to hire someone. Now, the Army in Huntsville has recognized these factors and is making efforts to change them. They are trying to relax the experience and degree requirements to allow newer hires out of college; they are also making it easier to hire interns to get them clearances and experience before they graduate.
See the Huntsville Times for the story.
Army fantasies on ARH
The Army is hoping with the termination of the Bell contract for the ARH that a new competition can be conducted and a new aircraft and contractor can be chosen. They are living in a fantasy land. The way that past competitions for these types of aircraft have been going any RFP and source selection will take a few months and a protest is almost guaranteed. Without changing the requirements for the system the Army will be seeing the same bidders, Bell and Boeing. If they do not want a larger aircraft then before Agusta Westland, EADS and Sikorsky will have a hard time preparing a proposal. One also hopes that the Army will also prepare a more realistic cost and schedule estimate.
See Rueters for the story.
ARH’s first try is cancelled
Filed under: Bell, Congress, Department of Defense, Federal Budget Process, Military Aviation, Restructuring, U.S. Army, commercial aviation, development program, production program
After the close of the stock market this evening the Department of Defense announced that they are canceling the Armed Reconnaissance Helicopter (ARH) contract with Bell. The ARH-70 was to be a replacement for the OH-58D Kiowa Warrior aircraft that has been in service for over twenty years. ARH was one of the programs created out of the end of the RAH-66 Comanche program. Bell had run into cost and schedule growth issues with the program, much of it probably due to an overly optimistic US Army estimate on the program. The program had suffered a Nunn-McCurdy cost breach and that required DoD to either certify to Congress on the necessity of the program, or cancel it. Now the Army will start over.
See The Wall Street Journal for more.
Incident Control Systems Receives Contract to Supply Add-on Armor for the Interim High Mobility Engineering Excavator – Press Release
Filed under: Contract Awards, ICS, development program, logistics, production program
New Bedford, MA, September 30, 2008: Incident Control Systems, LLC has been awarded a contract to continue the supply of Advanced Composite B-kit Armor for the Interim High Mobility Engineering Excavator (IHMEE). This latest contract awarded by Oshkosh Corporation of Oshkosh, WI will put the total armor built by ICS to over 70 kits. “This is a new partnership for us and we are very excited to be working with Oshkosh Corporation to provide these kits to the Army” said Eddie Terrenzi, VP of Business Development for Incident Control Systems, LLC.
A year ago ICS was selected as an Add-on Armor supplier for the IHMEE by US Army TARDEC after having gone through extensive testing. Over the past year ICS has provided Add-on Armor for the entire fleet of vehicles. “We are very pleased and honored that the US Government and Oshkosh has continued to place their trust in us and our advanced armor solutions” said Steve Monette, General Manager of Incident Control Systems, LLC.
Headquartered in New Bedford, Massachusetts, Incident Control Systems is a small business that specializes in the design, manufacture, and integration of advanced composite armor solutions for military combat vehicles.
Contact: Incident Control Systems, LLC
Eddie Terrenzi
508.984.8820
eterrenzi@incidentcontrolsystems.com
Navistar gets logistic vehicle contracts
Filed under: Contract Awards, Navistar, U.S. Army, logistics, production program
Navistar was awarded two contracts by the Army to provide tactical support vehicles. These include one contract for tankers to carry fuel, oil and water. The vehicles are for use in Iraq and Afghanistan. Navistar has won several contracts to provide these kind of vehicles. One would have to assume that over the past seven years the Army has used a lot of these vehicles beyond what the originally intended. They will require either replacement or recapitalization, where they are rebuilt and retrofitted to be like a new one.
See the press release at MarketWatch.com.
Defense spending to continue in 2009
Lockheed Martin’s CFO, Bruce Tanner, gave an interview to CNNMoney.com. His key point is that with either the election of Senator Obama or McCain there will be no real downturn in defense spending. Many have felt that the Democrat might slash defense spending in order to pay for the other programs he has proposed. The last two Democratic administrations, Carter and Clinton, are not well remembered within the Department of Defense due to their reduction in funding. Both of these administrations cut back heavily on spending, especially in the area of investment for new weapon systems. Read more
Army continues investment in Excalibur
Filed under: Australia, Contract Awards, Raytheon, U.S. Army, production program
The Excalibur is a 155 mm artillery round fired by the standard Army gun systems, both towed and self-propelled. When the program started in the Eighties the plan was to use laser guidance for terminal homing. Excalibur now uses GPS guidance, like the Joint Directed Air Munition (JDAM) used so successfully over the last seven years in Iraq and Afghanistan. The round also has extended range over older, more conventional ammunition. Raytheon was awarded a production contract for the US and Australia. The value is about $85 M.
The press release is at the Phoenix Business Journal.
US Army buys more HUMVEES
Filed under: AM General, Contract Awards, U.S. Army, logistics, production program
AM General was awarded a contract to build more HUMVEES for the Army. See a press release here. The contract is worth over $240 M. The HUMVEE is the ubiquitous jeep replacement in the US military. Although the soft skinned version has been replaced in Iraq and Afghanistan by up armored versions and MRAPS, the US military still uses thousands of them all over the world as a general purpose vehicle.
Army tests FCS parts
The Army conducted an exercise in July to test out parts of the FCS. See an article here. The neat thing about this is not the actual test or exercise but the photo of the soldier holding the control system for one of the remote vehicles used. The controller looks like a PlayStation one. It has been reported that these are the type of controllers being designed as the current generation of troops are familiar with them and can use them rather easily.
House marks appropriations bill
Filed under: Bell, Boeing, Congress, Contract Awards, EADS, Federal Budget Process, Military Aviation, Northrop Grumman Corp., development program, logistics, production program
The House Appropriations Committee marked the FY09 budget before taking their August recess. See a story here. The Army’s struggling Armed Reconnaissance Helicopter (ARH) program was marked to delete 13 aircraft, and the Navy’s Presidential Helo was also decremented. The House also ordered that consideration of jobs would be a criteria for the source selection of the KC-45 tanker. Boeing won its protest of the award to Northrop-Grumman and EADS and forced DoD to reconsider the contract. The Senate needs to also mark the bill and then there will be a Conference mark up as well.
Marines buy new transports
Filed under: Contract Awards, Hawker Beechcraft, Military Aviation, U.S. Marine Corps, commercial aviation, logistics, production program
The USMC awarded a contract to Hawker Beechcraft for 6 new transport aircraft. See a story here. These will replace older UC-12 aircraft also made by Hawker Beechcraft that have been in service for a few decades. These will most likely be used for personnel transport in more benign environments. The Army has been working to buy larger tactical transports through the Joint Cargo Aircraft (JCA) program but are struggling with the USAF on requirements and quantities.
ARH in jeopardy
Filed under: Bell, Congress, Department of Defense, Federal Budget Process, Military Aviation, Restructuring, U.S. Army, development program
The soaring costs of the ARH program have caused a Nunn-McCurdy Cost Breach. See a story here. The 40% increase in unit cost has caused the Army and DoD to rethink, again, proceeding with the contract. Nunn-McCurdy cost breaches were established in the 80’s as part of the overall reform of Congressional monitoring of programs. Read more
UAVs ordered by Special Operations
Filed under: Contract Awards, Heckler Koch, Military Aviation, US SOC, production program
The US Special Operations Command awarded a contract to buy small UAVs. See an article here. AeroVironment will provide their small Puma AE to the command. This illustrates that the USSOCOM is a separate entity within the DoD and can do its own acquisition. In the past they would have to rely on the main services to procure their equipment, but they now have their own development and procurement funds. The most recent key split between USSOCOM and the Army was the decision to go with a different rifle then the M4/M16. The Special Ops guys bout HK’s SCAR. For more on that see this.
Marines buy MRAPs
Filed under: Contract Awards, U.S. Navy, production program
According to this article the US Navy awarded five separate contracts to Navistar International. These contracts will be used to buy MRAP vehicles for the USMC. The MRAP market has increased dramatically in the last three years with BAE, Navistar and Force Protection being the main suppliers. The US military invested heavily in these vehicles to defeat the threat from IED in Iraq which had become the prime threat to their troops. Unfortunately the future combat forces of the Army and USMC will rely on other vehicles, perhaps the Joint Light Tactical Vehicle (JLTV) or the humble HUMVEE which will leave the US with a large inventory of MRAP vehicles not suited to other tactical missions.
Army awards iRobot FCS contract
Filed under: Boeing, Contract Awards, U.S. Army, development program, iRobot
Among the many parts of the Future Combat System (FCS) is a variety of ground and air unmanned vehicles. iRobot won a $60 M contract from the Army to provide parts of these systems. See the press release here. FCS will have a variety of vehicles, weapon systems, C4I systems and some unmanned systems to provide reconnaissance and intelligence collection. The Army has had success in Iraq and Afghanistan with small systems providing tactical intelligence to units, so this incorporation in FCS is a continued evolution of that effort.
One team set for Army’s new integrated air defense command and control contract
Filed under: Boeing, Northrop Grumman Corp., Proposal, U.S. Army, development program, missile defense
Northrop Grumman has organized a team of companies, including Boeing and Lockheed Martin, to bid on the Army’s contract for a new integrated air defense sensor net and command and control contract. See the release here. The contract will be awarded at the end of the fiscal year and will be for a system that takes advantage of new sensors and command and control networks. There is no word on who else plans to bid for this work.



