Kuwait Buys AH-64 CLS
Filed under: Contract Awards, Dyncorp, FMS, Kuwait, Military Aviation, U.S. Army, logistics
The US Army awarded DynCorp a contract to support the AH-64 Apache attack helicopters operated by Kuwait. MarketWatch has the press release here. The CLS contract is worth $11 M in the first year. Kuwait purchased a small number of these advanced aircraft through the US Army. DynCorp has other contracts with both the US and Kuwait governments to perform this type of work on other aircraft. Use of CLS, especially for non-combat systems, has been growing in the US and UK as it is considered cheaper as you do not have the associated personnel and training costs of using service personnel. Of course, CLS in support of FMS systems is also common as it is the simplest way for the nations to get the support they need for advanced weapons.
Department of Defense Buys Communications Services
Filed under: Contract Awards, Department of Defense, IT, Verizon, logistics
Your Communication News reports that the US DoD awarded Verizon two contracts for voice an data services. The two contracts are worth a combined $1.2 B; and have the ability to grow as new requirements are generated by the US government. Verizon already has had a contract in the past to provide these types of services. Read more
Local paper touts defense industry as a way to cushion downturn in US economy
Filed under: BAE Systems, Congress, Federal Budget Process, logistics, production program
The Scranton Times-Tribune has an article discussing how the recent issues with the US economy will have less effect in their area due to the many defense contractors. They mostly support Tobyhanna Army Depot and provide services and products to the Army. The article discusses in detail the BAE expansion in the area where they make armor and gear for soldiers. BAE acquired the US company Armor Holdings last year and the plant is part of that acquisition. While the majority of these contracts are for things the US military needs, it is another example of the Defense budget being used by Congress as job programs. Members of Congress brag about how many dollars they bring back to their districts; and how their re-election is critical to maintain this type of work.
See the article for more.
Small business prospers
Filed under: Akimeka Technologies, Congress, Contract Awards, Federal Budget Process, IT, SETA
This article from Hawaii describes how a small, minority owned business is prospering under DoD contracting rules. Most agencies and large contracts are required to share the work among small, disadvantaged business by Federal law and regulation. Here, Akimeka Technologies, a Hawaiian company, that provides IT services benefits from those rules. Larger companies will team with it to cross off that requirement, or they have a step-up in bidding on work due to their status. Of course they need to be able to do the work required, but many companies get a start like this due to the targeted efforts of the DoD.
For more see the article on Pacific Business News.
CACI reports
Filed under: CACI, Department of Defense, Earnings, IT, S&T, SETA, logistics
In the continuing trend of large defense contractors resulting improved results, CACI had a 13% growth in earnings compared to the equivalent quarter a year ago. Forbes.com reports. CACI is a leading provider of services to the US intelligence community, especially the Defense side. They also provide other services to the US government such as IT and logistics management. Revenue growth was even more impressive, surging over 20% on large intelligence contracts.
For more see the story at Forbes.com.
SecDef says KC-45 meddling by Congress may provoke retaliation
Filed under: Boeing, Contract Awards, EADS, GAO, Military Aviation, Northrop Grumman Corp., Protest, U.S. Air Force, logistics
According to this story during testimony about the FY09 Defense budget Secretary of Defense Gates warned that adding a requirement to contract awards for US jobs would only provoke retaliation by US allies in Europe and Asia. Currently Federal procurement law does not have increasing or protecting US jobs as a consideration for evaluating and awarding contracts. Congress can certainly add that to the law, and some have mooted they will, but it would come at a price. The US defense industry is now dependent on non-US companies for many parts and products. US allies are also dependent on US companies for a large amount of their systems as they do not have the capability to produce them. Any attempt by the US government to prevent foreign companies from competing could backfire and reduce the market for US companies. As we have stated here many times with the consilidation in the US industry in the Nineties it is hard to get decent competition for these kind of procurements. Only Boeing, EADS and Russian companies could have bid on it; McDonald Douglas is long gone, so Congress needed to expect this kind of situation.
Boeing sort of pushing CIA brief on EADS bribery
Filed under: Boeing, Contract Awards, EADS, Federal Budget Process, GAO, Northrop Grumman Corp., Protest, U.S. Air Force, commercial aviation, development program, logistics
According to The Hill Boeing is using its lobbyists to push Members of Congress to receive a briefing from the CIA on “foreign companies” using questionable means in their attempts to win contracts. See the article here. Of note the only two Congressman to talk on the record about this were Tiahart from Kansas, a vocal opponent of the deal and a former Boeing employee and Dicks from Washington. Both have been very supportive of Boeing in their attempt to throw out the KC-45 award to Northrop Grumman and EADS. Obviously Northrop Grumman is upset that Boeing would be stooping to this. The protest result will be announced in early June by the GAO. Congress cannot do anything but de-fund the program, something they are hesitant to do as it is important to the modernization of the Air Force.
No announcement for KC-X today either
Filed under: Boeing, Contract Awards, EADS, Northrop Grumman Corp., U.S. Air Force, commercial aviation, logistics
The DoD announced their contract awards today. No mention of KC-X yet. I guess we will have to wait and see tomorrow. Here the Saint Louis Business Journal summarizes all that is at stake.
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