Boeing to Modernize U.S. Nuclear Bombs

In another demonstration about how the world of nuclear weapons and classification of information has changed it was announced that Boeing (BA) has received a contract from the U.S. Air Force to design a new tail kit for the standard B61 aerial nuclear weapon.

The contract is worth a little over $175 million and is part of a program to improve the weapon’s reliability and upgrade the design.

The B61 has been in existence for almost fifty years in various versions. Boeing will work with the Mod 12 of the bomb. The B61 is a key component of the current U.S. stockpile of weapons.

In the past even confirmation of the existence of this weapon would have been impossible and now contract awards are treated routinely.

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India to Finally Get New Artillery Pieces

The long running saga of attempts to purchase a new artillery howitzer for the Indian Army seems to be coming to an end. A process that stretched about two decades primarily due to corruption and contracting issues looks resolved as the South Asian nation formally requested of the United States the ability to purchase BAE Systems’ M177 gun.

The M177 is the standard towed howitzer used by the U.S. Army and Marine Corps. It is capable of firing a variety of 155mm shells including the Excalibur guided round to fairly long ranges. It has seen heavy use in Iraq and Afghanistan. It makes a good choice for the Indian Army and continues their recent trends of buying from Western suppliers.

The fact that this looks like it will be a Foreign Military Sale (FMS) rather then a contest and award via the Indian procurement system may be due to the all of the issues facing previous attempts to purchase the gun. In the past several contracts and contests fell and companies were banned due to corruption and bribery issues.

The contract is worth about $700 million.

Photo from The U.S. Army flickr photostream.

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More Punisher Work for ATK

The XM-25 Punisher is a man portable weapon that fires 25mm programmable air burst shells. It is the result of the U.S. Army’s attempt to develop a new rifle earlier this century. The XM-8 rifle program was cancelled but it was decided to continue work on the XM-25. Alliant Techsystems (ATK) is the prime contractor for the XM-25. The system was issued in small numbers and tested in Afghanistan over the last several months and proved very effective. It is issued at the squad level and provides fire support for the members.

In March ATK was given a contract to continue the Engineering, Manufacturing and Development (EMD) of the Punisher. This was worth about $70 million. Now a further contract to continue EMD was issued this week. That one has a value of around $17 million.

The continued contract awards show that the Pentagon has interest in the Punisher and its further limited production and use. Once EMD is complete a decision will be made to bring it into large scale production.

ATK also will support a further assessment of the weapon in Afghanistan by providing another 36 XM-25 for use. The data collected in these types of trials will only aid development and providing the best systems possible.

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Navistar Reportedly Files Protest of JLTV EMD Contract Awards

Two weeks ago the Army awarded 3 contracts for further efforts on the HUMVEE replacement, the Joint Light Tactical Vehicle (JLTV). The proposals from Lockheed Martin (LMT), Oshkosh (OSK) and AM General were selected. The Navistar and General Dynamic (GD) ones were not. The value of these contracts were between $55-65 million and are for the first year of a two to three year process to build and test prototypes. At the end of this one will be chosen to go into production.

The JLTV program has the potential to be quite large as the estimated quantities are in the tens of thousands. The current cost estimate for production is about $13 billion. This does not take into account future support and parts contracts as well as the potential for foreign and direct military sales to U.S. allies.

It has now come out that Navistar filed a protest late Friday near the end of the ten day period. The losers were supposedly briefed on Thursday as to why their proposals were not chosen.

The filing of the protest means the contracts cannot be executed until it is resolved. The General Accountability Office (GAO) has 100 days to do this. The result could be an overturning of the awards and direction to do a new contest or directing the Army to review its selection process. In some cases the GAO has awarded the protester the contract over the winner.

As the defense budget shrinks and contracts become more valuable to the different defense contractors protests should increase. This was the trend in the Nineties when there was the last major contraction in U.S. spending.

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Mile Marker International, Inc. Announces Military Contract Awards

POMPANO BEACH, Fla.--(BUSINESS WIRE)--Mile Marker announces a new awarded government contract and new products for 2011.

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House Plans Continuing Resolution for Rest of FY11

Based on this press release from the House Appropriations Committee released yesterday it is clear that rather then try to pass a 2011 Defense Appropriations Act or any other part of the Fiscal Year 11 budget the Congress will use Continuing Resolution (CR) language for the remaining seven months of this FY.

Under CR funding will be capped at FY10 levels and it severely limits new contract awards and new program initiation. For example even if the U.S. Air Force announces in the next few weeks a winner for the KC-X aerial tanker program they may not be able to award the contract as the funding and language was not in the FY10 budget. This would potentially push that off to FY12.

One of the benefits to those wanting to reduce spending by the Federal Government by this approach is it holds spending at the FY10 level meaning that there is no growth in total spending. In fact the HAC release details over seventy programs that are being cut a total of over $70 billion.

Of course the problem for DoD with the CR is that they may need growth in funding for some parts of their budget including money for operations in Iraq and Afghanistan. The use of CR for the entire fiscal year may affect activities such as training as money is moved from stateside accounts into overseas operational ones.

Secretary of Defense Gates is still hoping to get Congress to pass a defense budget so that these types of choices do not have to be made and the U.S. military can meet its commitments.

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The GEO Group Announces Selection for Contract Awards for 650 Beds at Two Community Correctional Facilities in California

BOCA RATON, Fla.--(BUSINESS WIRE)--The GEO Group (NYSE: GEO) (“GEO”) announced today that it has been selected by the California Department of Corrections and Rehabilitation (“CDCR”) for contract awards for the housing of 650 female inmates at GEO’s company-owned 250-bed McFarland Community Correctional Facility and 400-bed Mesa Verde Community Correctional Facility (the “Facilities”) located in California. The contract, which is subject to final review and approval by the California Department

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RTI Announces Two Long-Term Titanium Fabrication Awards with Airbus and Modifies Long-Term Supply Agreements

PITTSBURGH--(BUSINESS WIRE)--RTI International Metals, Inc., (NYSE: RTI), announced today that it has modified its long-term agreement with Airbus to allow more flexibility in the near-term with Airbus’ ordering of titanium mill products. As part of the modification, Airbus has ordered more titanium mill product volume for 2010 than was anticipated at the start of the year. General terms and conditions remain in line with the original agreements. In addition, under two contract awards commencing

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Trace Systems Announces Three New Contract Awards Totaling More Than $30 Million

MCLEAN, Va.--(BUSINESS WIRE)--New contracts in Europe and Southwest Asia spur significant growth in McLean-based defense business

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Oshkosh Defense Responds to U.S. Army’s Need for Tactical Vehicles; U.S. Army Program Maintains Original FMTV Contract Timeline — Press Release

Oshkosh Defense Responds to U.S. Army’s Need for Tactical Vehicles; U.S. Army Program Maintains Original FMTV Contract Timeline

OSHKOSH, Wis. (July 8, 2010) — Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), announced today it has received two orders from the U.S. Army TACOM Life Cycle Management Command (LCMC) to supply 950 U.S. Army Family of Medium Tactical Vehicles (FMTV) trucks and trailers. Oshkosh continues to hold fast to the Army’s original FMTV delivery schedule and expects to complete deliveries for these latest awards by December 2011.

“Oshkosh remains on target for FMTV production-unit deliveries starting in October of this year, allowing our men and women in uniform to receive these essential vehicles as quickly as possible,” said Mike Ivy, vice president and general manager of Army Programs for Oshkosh Defense. “From testing and production to training and service, we intend to satisfy every Army requirement related to the FMTV program with high quality Oshkosh products delivered on schedule.”

The two delivery orders, valued at more than $136 million, include nearly 800 trucks and more than 160 trailers, increasing the total number of Oshkosh FMTV truck-and-trailer under order to 6,159. Oshkosh also will supply nearly 40 FMTV add-on armor “B” kits under the orders.

The five-year FMTV contract is for the production of up to 23,000 vehicles and trailers, as well as support services and training through fiscal 2014. The FMTV is a series of 17 models ranging from 2.5-ton to 10-ton payloads. Vehicles feature a parts commonality of more than 80 percent, resulting in streamlined maintenance, training, sustainment and overall cost efficiency for the U.S. Army.

About Oshkosh Defense

Oshkosh Defense, a division of Oshkosh Corporation, is an industry-leading global designer and manufacturer of tactical military trucks and armored wheeled vehicles, delivering a full product line of conventional and hybrid vehicles, advanced armor options, proprietary suspensions and vehicles with payloads that can exceed 70 tons. Oshkosh Defense provides a global service and supply network including full life-cycle support and remanufacturing, and its vehicles are recognized the world over for superior performance, reliability and protection. For more information, visit www.oshkoshdefense.com.

About Oshkosh Corporation

Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corporation manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Medtec®, Jerr-Dan®, Oshkosh Specialty Vehicles, Frontline™, SMIT™, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, visit www.oshkoshcorporation.com.

®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.
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Lockheed Gains From L-3 Suspension as it Starts Supporting Air Force SOCOM

The U.S. Air Force recently suspended L-3 Communications Holdings (LLL) from work on various contracts because it faces criminal investigation over misusing government email and IT systems. Because of this suspension Lockheed Martin (LMT) was given the contract back to execute. The total value of the contract if all options are executed is about $5 billion.

L-3′s Special Support Programs Division is now banned at least temporarily from receiving new contracts or task orders. The group had a contract to manage the U.S. Air Force Special Operations Command’s IT network including email. The company used their access to the system to examine emails from government employees, their own workers as well as contractors to look at bidding on other contracts. They also attempted to discover if their employees were sharing information with other companies relative to competitions.

The news and suspension have had little effect on the company’s stock with it closing yesterday at 88.39, down a little over one-quarter-of-one-percent. If the case goes on to find criminal acts the company could see more suspensions, fines and limits on their ability to bid on new contracts as a whole rather then with just one unit.

Lockheed will transition to take over the contract over the next four months, slowly assuming the duties. Lockheed had won the work away from L-3 in 2009 but the two companies were waiting on a protest filed by the loser to be resolved. The decision to suspend the group means that Lockheed will get the contract which will last until late into the next decade. The wait to resolve the protest by the GAO may have delayed the start of this work by several more months.

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Australia Continues Targeted Investment in Military Modernization

Australia has announced a series of contracts to upgrade parts of their military. Some of this has been in response to the fighting in Afghanistan since 9/11 and others due to the expanding ability of the Chinese and other Asian states military. These contracts include updated naval combat ships as well as the major commitment to the struggling F-35 Joint Strike Fighter (JSF). When at all possible Australia is awarding these to companies based in the country to maximize the stimulus effect of the contract. As all nations Australia has been affected by the global economic downturn of the last two years and is trying to spend its defense dollars judiciously to help its own domestic suppliers.

The next major contract announced is one for light armored vehicles that will be used to upgrade both troops in Australia and those deployed in Afghanistan. The U.S. and its Allies have seen the need for better systems with more maneuverability and protection against the mine and Improvised Explosive Device (IED) threat.

The contract could be worth up to $1 billion (Aus) and several different teams will be bidding for it. One of these will be Thales Australia based in Victoria. As it names indicates this is part of the Thales, French based, aerospace and defense company. The company has about a $1 billion (Aus) business already in Australia so winning this contract will be a major coup and increase in their business.

The Australian government plans to conduct the contract in the same manner as the U.S. Department of Defense’s recent MRAP-ATV contest. Here companies were paid to build prototypes that were tested and then one or more of the designs were chosen. Australia is giving Thales and General Dynamics Land Systems, part of the U.S. General Dynamics (GD) defense giant, as well as a company headed up by the U.S. Force Protection (FRPT) MRAP maker contracts to deliver prototypes.

The choice of a new vehicle will be a major upgrade to the Australian defense capabilities and the decision to use an Australian based company to do the development and production will aid the county’s economy.

Photo from ISAF media flickr photostream.

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Canada Considering Entering New Fighter Sweepstakes

Right now two of the biggest military aviation contracts out there are new fighters for Brazil and India. Both of these contracts have attracted bids from United States and European defense contractors. In Brazil the contest seems to be between the Boeing (BA) F/A-18 and the French Rafael. In India there have been offers from Boeing, Lockheed Martin (LMT), MiG of Russia, Rafael. Eurofighter and SAAB of Sweden. These contracts are interesting as all of these companies face declining markets at home due to budget difficulties and the decision by the U.S. and many of its Allies to focus on the F-35 Joint Strike Fighter (JSF) headed up by Lockheed.

Canada currently operates a force of older F/A-18 aircraft and is planning a potential buy of more modern aircraft worth about $9 billion (Canadian). Canada has put some money into the development of the JSF as have countries like Great Britain, the Netherlands, Australia and Japan but is not committed to buy the aircraft. They certainly could do that when the aircraft is ready in the 2015 – 2017 time frame or they could conduct a new competition. If they did this they would certainly draw a diverse group of suitors similar to what India has. The market for new fighters was supposed to stagnate as thousands of F-35 replace the F-16 aircraft of numerous U.S. Allies. Now with the delays and cost increases to that program some countries are having second thoughts.

A third major competition would be good for the industry and would allow some production lines like the SAAB Gripen to remain hot as the JSF program tries to get itself sorted out. If countries like Holland do decide to go a different path the market for current in production aircraft will increase greatly.

More fallout as the JSF program struggles with its cost and schedule may be expected as current customers re-think their commitments. This will increase the cost to the U.S. military while reducing Lockheed’s chances of making up some of their losses on the development piece of the contract. Canada if they choose to not buy the JSF may be the start of some bad news for the program and its prime contractor.

Photo from TMWolf flickr photostream.

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More Global Hawks For The Air Force And Northrop Grumman

The U.S. Air Force announced that it has awarded two contracts to Northrop Grumman (NOC) to continue production and development of the strategic Global Hawk UAV. The combined value of the contracts is worth almost $600 million. The Global Hawk flies long range missions autonomously and collects signals, communications and other type of intelligence.

The contracts call for continued production of four more systems. Two each of the Block 30 and 40 designs were ordered. The second contract will pay for two payload packages called airborne signals intelligence payloads (ASIP) and upgrade kits for three more ASIP.

The company also announced that it had received $30 million to purchase long lead items for these systems.

Global Hawks have been flying since before 9/11 and have carried out missions across South West Asia in support of U.S. operations there. The U.S. Navy and Australia are also looking at the system.

http://www.flickr.com/photos/gotoh/ / CC BY-ND 2.0
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Congress Wants WTO Taken Into Account In KC-X Bidding

Kansas legislators in both the House and Senate are planning to introduce a bill that would require the Pentagon to take WTO rulings into account. The Department of Defense has maintained that in accordance with U.S. laws and regulations that those matters cannot be considered or punished in contract awards. If it did that would be a violation of the WTO itself.

The bill would allow price adjustments to be made in bids to reflect illegal subsidies rulings. The legislators, Senator Brownback (R-KS) and Congressman Tiahart (R-KS), claim it would be applicable to any defense contract but it is obviously targeted at EADS (EADS:P) and their KC-X bid. The legislators claim that without taking these subsidies into account the price of the A330 based tanker will be artificially low.

They would prefer the contract go to Boeing (BA) who would do substantial work in Kansas on their tanker program.

Defense Department To Continue To Train Journalists At Syracuse University

The United State’s Department of Defense buys many different products and services. They announced yesterday that they will award Syracuse University’s Newhouse School of Public Communications a contract to continue to train military journalists. The contract has a value of over $4 million and will consist of a base year and four option years. The school has been providing this service since 1963 with annually renewed contracts.

The military in the modern era has always had journalists who produced news for the Defense Department and service members. It has obviously expanded in recent years to include broadcast television and radio, the internet and other media. The Newhouse school has played a major role in developing this capability and this contract continues that contribution.

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Contracts for April 28, 2010



NAVY

Lockheed Martin Corp., MS2 Radar Systems, Syracuse, N.Y., is being awarded a ceiling $70,000,000 indefinite-delivery/indefinite-quantity contract for the continued maintenance and sustainment of the AN/TPS-59(V)3 three-dimensional long-range radar system. This acquisition is for the continued post-production life cycle support of the AN/TPS-59 radar system and includes engineering studies, evaluations, and analysis in order to support system improvements, eliminate obsolescence, and capitalize on technology insertions. The contract provides for the design, development, production, and incorporation of hardware, software, and firmware in support of accepted engineering change proposals (ECPs) into the end item baseline. The contract also provides for contractor logistics support (CLS) for the provisioning of data products subsequent to ECP procurement, including but not limited to: parts list identification data, engineering drawings, change pages to drawings, change pages to technical manuals (TMs) and updates to interactive electronic TMs. Additionally, the contract provides CLS in the form of a vendor level maintenance program and contractor engineering and technical support services. Work will be performed in Syracuse, N.Y., and is expected to be completed April 2015. Contract funds will not expire at the end of the current fiscal year. Marine Corps Systems Command, Quantico, Va., is the contracting activity (M67854-10-D-2200).

EDO Communications & Countermeasures Systems, Thousand Oaks, Calif., is being awarded a $20,795,230 modification to a previously awarded contract (N00024-07-C-6311) to exercise options for the production and support of 436 Joint Counter Radio-Controlled Improvised Explosive Device Electronic Warfare (JCREW) 2.1 systems with the Band C engineering change proposal upgrade. Work will be performed in Thousand Oaks, Calif., and is expected to be completed by September 2010. Contract funds in the amount of $5,773,945 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

Harris Corp., Lynchburg, Va., is being awarded a $9,196,796 modification to a previously awarded indefinite-delivery/indefinite-quantity, firm-fixed-price contract (N65236-07-D-5115) for land mobile radio systems and equipment for the Hierarchical Yet Dynamically Reprogrammable Architecture (HYDRA) wireless interior communications program. The cumulative value of this contract, including this modification, is $39,196,795. Work will be performed in Lynchburg, Va., and is expected to be completed by November 2010. Contract funds will not expire at the end of the current fiscal year. This contract was not competitively procured. The Space and Naval Warfare Systems Center Atlantic, Charleston, S.C., is the contracting activity.

AIR FORCE

Aegis Technologies Group, Inc., Huntsville, Ala., was awarded a $20,481,517 contract which will provide the Air Force Modeling and Simulation Training Toolkit, which is a non-commercial, government-owned simulation system used to train the Joint Force Command, Joint Force Air Component Commander, and their battle staff in multiple federation environments. At this time, $1,483,700 has been obligated. 753 ESG, Hanscom Air Force Base, Mass., is the contracting activity (FA8731-10-C-0003).

DEFENSE LOGISTICS AGENCY

Lion-Vallen, LP, Dayton, Ohio is being awarded a maximum $15,200,000 service contract to furnish warehousing, storage, logistics, and distribution functions for Army clothing and textile requirements. Other locations of performance are Virginia and Kentucky. Using services are Army and federal civilian agencies. There were originally 50 proposals solicited with seven responses. The date of performance completion is Nov. 13, 2010. The Defense Supply Center Philadelphia, Philadelphia, Pa., is the contracting activity (SP0100-99-C-0333).

Honeywell International, Inc., Tempe, Ariz. is being awarded a maximum $7,602,305 firm-fixed, sole-source contract for anti-icing valves. There are no other locations of performance. Using service is Army. There was originally one proposal solicited with one response. The date of performance completion is Jan. 1, 2014. The Defense Logistics Agency (DSCR-AH), Redstone Arsenal, Ala., is the contracting activity (SPRRA1-10-D-0011).

Contracts for April 08, 2010



ARMY

SRCTec, Inc., Syracuse, N.Y., was awarded on April 1 a $94,386,209 firm-fixed-price contract for the procurement of 3,239 urgently required Duke V2 systems. Work is to be performed in Syracuse, N.Y., with an estimated completion date of Dec. 31, 2010. One sole source bid was solicited with one bid received. CECOM Acquisition Center, Fort Monmouth, N.J., is the contracting activity (W15P7T-05-D-S205).

BAE Systems, Ordnance Systems Inc., Kingsport, Tenn., was awarded on March 31 a $44,000,000 firm-fixed-price contract. This contract provides funding for the Area A to Area B acid facility relocation at Holston Army Ammunition Plant. Work is to be performed in Kingsport, Tenn., with an estimated completion date of Dec. 31, 2012. One bid was solicited with one bid received. Army Contracting Command, Rock Island Contracting Command, Rock Island, Arsenal, Ill., is the contracting activity (DAA09-98-E-0006).

Joseph J. Henderson and Son, Inc., Gurnee, Ill., was awarded on March 31 a $24,306,000 firm-fixed-price contract. This contract is to construct an advanced waste water treatment plant at Fort Riley, Kan. Work is to be performed in Fort Riley, Kan., with an estimated completion date of Sept. 22, 2011. Bids were solicited on the World Wide Web with eight bids received. U.S. Army Corps of Engineers-Kansas City District, CECT-NWK-M, Kansas City, Mo., is the contracting activity (W912DQ-10-C-4014).

L-3 Fuzing and Ordnance Systems, Cincinnati, Ohio, was awarded on March 31 a $24,069,912 firm-fixed-price contract for M762A1. Work is to be performed in Cincinnati, Ohio, with an estimated completion date of Sept. 30, 2013. Bids were solicited on the World Wide Web with one bid received. Army Contracting Command, Joint Munitions & Lethality Contracting Center, CCJM-CA, Picattinny Arsenal, N.J., is the contracting activity (W15QKN-09-C-0050).

General Dynamics Ordnance and Tactical Systems-Scranton Operations, Scranton, Pa., was awarded on March 31 a $23,888,512 firm-fixed-price contract. The contract shall provide the facilities, personnel, and equipment for the manufacture of the 15mm M795 metal parts with flexible rotation band covers. Work is to be performed in Scranton, Pa., with an estimated completion date of June 30, 2011. One bid was solicited with one bid received. Army Contracting Command, Joint Munitions & Lethality Contracting Center, CCJM-CA, Picattinny Arsenal, N.J., is the contracting activity (W15QKN-08-C-0244).

BAE Systems National Security Solutions, Inc., San Diego, Calif., was awarded on March 31 a $23,405,241 cost-plus-award-fee contract. This contract is for the baseline scope of efforts including application of capabilities-based acquisition and disciplined program management, systems engineering, software engineering, hardware engineering, systems integration and testing, and other processes, practices, and resources. Work is to be performed in Newington, Va., with an estimated completion date of Oct. 31, 2012. Bids were solicited on the World Wide Web with three bids received. National Geospatial-Intelligence Agency, Reston, Va., is the contracting activity (HM1572-07-C-0002).

Trumbull Corp., Pittsburgh, Pa., was awarded on April 1 a $17,659,363 firm-fixed-price contract. This contract is part of the major rehabilitation project for the stabilization of Emsworth Dams. This project involves stabilization of the back channel dam left abutment and installation of permanent scour protection consisting of grout filled bags downstream of the existing dam apron at Emsworth Locks and Dam, Ohio River, Pennsylvania. The work to be performed under this contract consists of furnishing all plant, materials, equipment, supplies, and labor for the installation of micropiles and rock anchors for stabilizing the existing abutment wall; a pipe pole and sheet pile combination wall installed riverward of the existing abutment to facilitate grade separation for the scour protection; dredging the river; and installation of new grout bag scour protection across and downstream of the existing channel dam. Work is to be performed in the Ohio River at the Emsworth Locks and Dam, back channel dam on Neville Island, Pittsburgh, Pa., with an estimated completion date of Oct. 23, 2011. Bids were solicited on the World Wide Web with five bids received. U.S. Army Engineer District, Pittsburgh, Pa., is the contracting activity (W911WN-10-C-0012).

Lockheed Martin Corp., Grand Prairie, Texas, was awarded in April 1 a $16,660,000 firm-fixed-price contract for recertification of 48 PAC-3 missiles, teardown of 12 PAC-3 missiles, and repair of missiles as necessary. Work is to be performed in Grand Prairie, Texas (66 percent), and Huntsville, Ala. (34 percent), with an estimated completion date of January 2011. One bid was solicited with one bid received. U.S. Army Aviation and Missile Command, Redstone Arsenal., Ala., is the contracting activity (W31P4Q-007-C-0135).

Northrop Grumman Information Technology, McLean, Va., was awarded on March 31 a $15,998,775 cost-plus-fixed-fee contract for Army-Defense integrated human resource system, personnel and pay system, and IT services. Work is to be performed in Alexandria, Va., with an estimated completion date of Sept. 30, 2010. One bid was solicited with one bid received. National Capitol Region Contracting Center, Alexandria, Va., is the contracting activity (NOOO39-02-C-3238).

SGS, LLC, Oklahoma City, Okla., was awarded on March 31 a $15,282,126 firm-fixed-price contract. This contract is for the construction of a 60,395 square foot simulation center, access control facility, tactical operations pad, and antenna tower at Fort Bliss, Texas. Supporting facilities include utilities, electric service, parking, paving, walks, curbs, gutters, storage space, storm drainage, information systems, landscaping, site improvements, and fire protection and alarm systems. Anti-terrorism measures include laminated glass, exterior lighting, and stand-off distances. Accessibility for individuals with disabilities will be provided. Air conditioning is estimated at 210 tons. Sustainable design, development, and the Energy Policy Act of 2005 will be provided. The simulation center is required to support increases in virtual and live training. Work is to be performed in El Paso, Texas, with an estimated completion date of Dec. 31, 2011. One hundred and fifty-six bids were solicited with eight bids received. U.S. Army Engineer District, Fort Worth, Texas, is the contracting activity (W9126G-10-C-0034).

Rockwell Collins, Cedar Rapids, Iowa, was awarded on March 31 a $14,890,341 cost-plus-fixed-fee contract. This contract is under the Defense Advanced Research Projects Agency’s Phase II of the Emissive Micro-Display (EMD) program. Rockwell Collins will continue to optimize the EMD system to meet final program metrics based on the quantum photonic imager devices. Work is to be performed in multiple cities across the United States, with an estimated completion date of March 31, 2012. Bids were solicited via Broad Agency Announcement with four bids received. Defense Advanced Research Projects Agency, Arlington, Va., is the contracting activity (HR0011-10-C-0098)

Techni Graphic Systems, Inc., Fort Collins, Colo., was awarded on March 31 a $13,192,724 contract for a production program consolidated task order to include negotiated firm-fixed-pricing which will be utilized to acquire global geospatial data products during the Award Term Five ordering period. Work is to be performed in Wooster, Ohio, with an estimated completion date of March 31, 2011. Nine bids were solicited with six bids received. National Geospatial Intelligence Agency, ACMS, St. Louis, Mo., is the contracting activity (NMA302-03-D-0003).

General Dynamics Land Systems, Sterling Heights, Mich., was awarded on March 31 a $9,750,000 cost-plus-fixed-fee contract for modification P00143, exercising an option for system technical support for the Abrams tank program. Work is to be performed in Sterling Heights, Mich., with an estimated completion date of Dec. 19, 2011. One bid was solicited with one bid received. TACOM-Warren, AMSCC-AHLC, Warren, Mich., is the contracting activity (W56HZV-08-C-0028).

Harris Corp., Melbourne, Fla., was awarded on March 31 a $9,280,000 contract for a production program consolidated task order to include negotiated firm-fixed-pricing which will be utilized to acquire global geospatial data products during the award term 5 ordering period. Work is to be performed in Melbourne, Fla., with an estimated completion date of Mar. 31, 2011. Nine bids were solicited with six bids received. National Geospatial-Intelligence Agency, ACMS, St. Louis, Mo., is the contracting activity (NMA302-03-D-0006).

Raytheon Systems Co., McKinney, Texas, was awarded on March 31 a $6,076,246 firm-fixed-price contract for 11 improved target acquisition sub-systems. Work is to be performed in McKinney, Texas, with an estimated completion date of Oct. 31, 2012. One bid was solicited with one bid received. U.S. Army Contracting Command, AMCOM Contracting Center, Redstone Arsenal, Ala., is the contacting activity (W31P4Q-06-C-0290).

Lockheed Martin Missiles and Fire Control, Orlando, Fla., was awarded on March 31 a $5,669,300 firm-fixed-price contract. This procurement is for issuance of an undefinitized contract action for the purchase of performance-based logistics in support of Foreign Military Sales customer United Arab Emirates for the AH-64 Apache modernized target acquisition designation sight/pilot night vision sensor. Work is to be performed in Orlando, Fla., with an estimated completion date of March 31, 2012. One bid was solicited with one bid received. Army Contracting Command, Aviation & Missile Command Contracting Center, CCAM-AP-B, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-10-C-0028).

TKC Integration, Anchorage, Alaska, was awarded on March 31 a $5,631,715 firm-fixed-price contract for Segovia dedicated radio frequency bandwidth 8.7 aggregate outroute; Optical Carrier Level 3 direct access terrestrial network link, inside the contiguous United States; and Segovia premium light shared. Work is to be performed in Fort Sam Houston, Texas, with an estimated completion date of March 31, 2011. Bids were solicited on the World Wide Web with one bid recived. Mission and Installation Contract Center, U.S. Army Reserve, Fort Dix, N.J., is the contracting activity (W911S1-10-F-0048).

NAVY

Northrop Grumman Technical Services, Inc., Herndon, Va., is being awarded a $49,999,051 cost-plus-fixed-fee contract providing operation and maintenance services for the combined tactical training ranges. Combined tactical training ranges provide live and virtual environment to support a broad range of mission essential tactical training requirements throughout the Navy aviation training continuum. Services will be required at shore sites, land-based test facilities, and aboard ships in ports and at sea. Work will be performed in Fallon, Nev. (40 percent); Yuma, Ariz. (25 percent); Cherry Point, N.C. (17 percent); Oceana, Va. (10 percent); Key West, Fla. (4 percent); and Beaufort, S.C. (4 percent). Work is expected to be completed by April 2011. Contract funds in the amount of $3,600,000 will expire at the end of the current fiscal year. This contract was not competitively procured. The Port Hueneme Division, Naval Surface Warfare Center, Port Hueneme, Calif., is the contracting activity (N63394-10-C-5006).

Logistics Services International, Inc., Jacksonville, Fla., is being awarded a $48,000,000 ceiling priced indefinite-delivery/indefinite-quantity contract to conduct site surveys; training plan and curriculum development; aircrew and maintenance training; publications review/update; logistics technical assistance; program management; and other support services for the P-3 aircraft for the government of Taiwan under the Foreign Military Sales program. Designed after Navy training standards, inside and outside the continental United States, training/support will provide Taiwan’s Navy aircrew and maintenance personnel with technical proficiency in their respective positions. Work will be performed in Taiwan (95 percent) and Jacksonville, Fla. (5 percent), and is expected to be completed in April 2015. Contract funds will not expire at the end of the current fiscal year. This contract was not competitively procured. The Naval Air Warfare Center Training Systems Division, Orlando, Fla., is the contracting activity (N61339-10-D-0001).

Synexxus Inc.*, Arlington, Va., is being awarded a $7,292,774 indefinite-delivery/indefinite-quantity, cost-plus-incentive-fee, performance-based contract to provide research, development, engineering, test, operations, maintenance, and sustainment of the Oberon data distribution system architecture; total system engineering; and quantitative analytics. The contract includes (1) one-year option period which, if exercised, would bring the cumulative value of the contract to an estimated $11,497,036. Work will be performed in Afghanistan (70 percent) and Iraq (30 percent), and is expected to be completed by April 2011. If all options are exercised, work could continue until April 2012. Funds will not be obligated at this time. The contract is being awarded on a sole source basis. The Space and Naval Warfare Systems Center Atlantic, Charleston, S.C., is the contracting activity (N65236-10-D-6070).

The Boeing Co., Lanham, Md., is being awarded a $7,148,440 firm-fixed-price order via the General Services Administration schedule for the procurement of 929 Combat Survivor Evader Locator radios (P/N 4866112101), including supporting equipment for the Navy. Work will be performed in Palmdale, Calif., and is expected to be completed in March 2011. Contract funds will not expire at the end of the current fiscal year. This contract was not competitively procured pursuant to DFAR 206.302-1(a))(1)(i). The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-10-F-0006).

Raytheon Space and Airborne Systems., El Segundo, Calif., is being awarded a $5,792,324 cost-plus-fixed-fee delivery order against a previously issued Basic Order Agreement (N00019-05-G-0008) for the procurement of two AN/APG-79 active, electronically scanned array test radars to support the F/A-18 and EA-18G programs. Work will be performed in Forest, Miss. (45 percent); El Segundo, Calif. (35 percent); Andover, Mass. (15 percent); and Dallas, Texas (5 percent), and is expected to be completed in November 2011. Contract funds will not expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

MISSILE DEFENSE AGENCY

The Boeing Co., Seattle, Wash., is being awarded a sole-source cost-plus-award-fee modification for $32,713,529. Under this contract, Boeing will continue post flight experiment Laser - 01 work with additional missile engagement scenarios and flight testing to include all required support. The work will be performed in Seattle, Wash., and at three California locations: Edwards Air Force Base, Sunnyvale, and Redondo Beach. The performance period is through May 2010. Fiscal 2010 research, development, test, and evaluation funds will be used for this effort. The Missile Defense Agency is the contracting activity (F29601-97-C-0001).

AIR FORCE

Wyle Laboratories, Inc., Huntsville, Ala., was awarded a $6,808,382 contract which provides for the research, test, development, and delivery of communication and technical recommendations, technical studies, network operations reports, version updates, engineering studies, and requirements traceability matrices. At this time, $371,461 has been obligated. 55 CONS/LGCD, Offutt Air Force Base, Neb., is the contracting activity (HC1047-05-D-4005).

Ellwood National Forge Co., Irvine, Pa., was awarded a contract which will exercise an option to procure 108 BLU-121 bombs to be used on precision guided air-to-surface weapons and Joint Direct Attack Munitions for the F-15E, F-16, and B-2 platforms. At this time, the entire amount has been obligated. 685 ARSS/PK, Eglin Air Force Base, Fla., is the contracting activity (FA8677-10-C-0063, P00002).

DEFENSE LOGISTICS AGENCY

Pierce Manufacturing, Inc., Appleton, Wis., is being awarded a maximum $5,240,275 firm-fixed-price, long-term contract for fire-fighting vehicle, structural pumper. There are no other locations of performance. Using service is Navy. There were originally three proposals solicited with three responses. Contract funds will expire at the end of the current fiscal year. The date of performance completion is Dec. 28, 2010. The Defense Supply Center Philadelphia, Philadelphia, Pa., is the contracting activity (SPM500-01-D-0062-0072).

*Small business

J&J Worldwide Wins Commissary Contract

J&J Worldwide Services of Texas was awarded a contract by the Defense Commissary Agency to operate and maintain thirty-one commissaries at U.S. military facilities on the East Coast. The contract has a value of up to $100 million. J&J has already won several contracts to support DoD medical facilities so the expansion into other housekeeping services like this is a natural progression.

Commissaries provide grocery and supermarket services on-base to U.S. military personnel, their dependents and retirees. They are one of the core benefits of the military as they provide competitive prices sales tax free. While with many parts of traditional military benefits they have suffered due to the massive movement of troops off of base into the civilian economy they are still operated worldwide.

J&J Worldwide is a growing defense contractor that is exploiting its niche in providing these kind of services.

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BRAC Work At Fort Sam Houston Leads To Contract for World Wide Technology

The recent round of BRAC moved most of the U.S. military’s medical training to Fort Sam Houston in San Antonio, Texas. This has required significant investment in contracts to help with the new construction, movement of organizations there and the other myriad work involved with the consolidation. Now the Department of Defense has awarded a $27 million contract to World Wide Technology to provide the necessary IT support.

World Wide will provide network services and storage as well as help desk support. They will also be responsible for supporting the A/V assets needed to conduct the training. The school when fully completed and implemented will have an average of 9,000 students at a time. The necessary teaching load will require substantial IT and A/V support from World Wide Technologies.

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MRAP-ATV Continues To Drive Work For Plasan Bennington

The MRAP-ATV is the new lighter, more maneuverable MRAP made for service in Afghanistan. Oshkosh won the production contract and so far has been awarded contracts for over 8,000 vehicles by the U.S. military. Plasan Bennington makes armor plates for the vehicles and as Oshkosh receives contracts so does the Vermont company.

It announced that Oshkosh had given it a sub-contract worth over $170 million as part of a recent order of 1,460 MRAP vehicles. As the U.S. industry geared up to produce not only MRAPs but also uparmored HUMVEE and trucks several companies expanded their capabilities. Plasan Bennington is one along with BAE Systems. Protection against IED and mines demands the production of sophisticated metal plates for use on military vehicles.

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Defense Solutions Holding Hits The Big Time

There are lots of little defense contractors who are started by people wanting more then just working for another company. They usually start with one or two small sub-contracts and work to establish a reputation or an opportunity to bid as a prime on a larger contract. This business model has been highly successful for the last thirty years. Of course for every company that makes it several do not.

The small defense contractor, Defense Solutions Holding, Inc, has had some luck in winning logistic support contracts in Iraq and other countries. Revenue in 2009 was on track to be under $2 million. They just announced that they have won a contract to provide foodstuffs to the Iraqi Government in a deal worth over $60 million if all options are exercised.

This is a major growth for a company this size and illustrates well how the business can work.

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Oshkosh And The MRAP-ATV: 4 Billion Dollars And Counting

January 27, 2010 by · Comment
Filed under: BNET 

Oshkosh (OSK) was able to balance off its losses in their commercial sector though winning contracts to make Mine Resistant Ambush Protected (MRAP)…

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Non-Standard Ammo Contracts Paying Dividends For ATK

January 15, 2010 by · Comment
Filed under: BNET 

Alliant Techsystems (ATK) has been awarded several contracts from the U.S. Army to procure non-standard ammunition for Afghanistan’s military and…

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Brazil Delays Fighter Order

One of the biggest contracts currently under consideration is Brazil’s buying of modern fighter aircraft. Right now bids from Dassault, SAAB and Boeing are under consideration. This along with India’s new fighter program are two of the larger aviation contracts waiting for award. Brazil as part of this contract is expecting a great deal of investment in their economy using this and a major helicopter deal with Eurocopter to increase the capability and technology of their defense industry.

Now it is being reported that Brazil will delay a final decision on this contract until early next year. The decision is related to how much investment each company is willing to make and whether Brazil will be able to use their technology in future aircraft construction. Because the contract is so important especially to Dassualt and SAAB the amount of technology transferred may be high.

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