Military Base Realignments and Closures: DOD Needs to Update Savings Estimates and Continue to Address Challenges in Consolidating Supply-Related Functions at Depot Maintenance Locations. GAO-09-703, July 9

March 12, 2010 by Jeffrey Bradford · Comment
Filed under: GAO, Syndicated Industry News 
July 9, 2009

The Government Accountability Office (GAO) today released the following reports, testimony, and correspondence:

LETTER REPORT
Military Base Realignments and Closures: DOD Needs to Update Savings Estimates and Continue to Address Challenges in Consolidating Supply-Related Functions at Depot Maintenance Locations. GAO-09-703, July 9

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GAO Report: Overseas Contingency Operations: Reported Obligations for the Department of Defense. GAO-09-791R

March 12, 2010 by Jeffrey Bradford · Comment
Filed under: GAO, Syndicated Industry News 
July 10, 2009

The Government Accountability Office (GAO) today released the following reports, testimony, and correspondence:

CORRESPONDENCE
Overseas Contingency Operations: Reported Obligations for the Department of Defense. GAO-09-791R, July 10

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House Armed Services Committee: schedule for the week of March 8 – March 12, 2010

March 5, 2010 by Jeffrey Bradford · Comment
Filed under: Syndicated Industry News 
House Armed Services Committee: schedule for the week of March 8 – March 12, 2010
House Armed Services Committee
March 5, 2010

The House Armed Services Committee announces the following schedule for the week of March 8 – March 12, 2010:

Tuesday, March 9, 2010 – 5:30pm – 2118 Rayburn – Open

The Military Personnel Subcommittee will meet to receive testimony on reviewing studies of the effects of deployment on military children.

Witnesses:

Anita Chandra, Dr.PH.
Behavioral Scientist
RAND Corporation

Leonard Wong, Ph.D.
Research Professor
Strategic Studies Institute
U.S. Army War College


Wednesday, March 10, 2010 – 10:00am – 2118 Rayburn – Open

The Full Committee will meet to receive testimony on Fiscal Year 2011 National Defense Authorization Budget Requests from the U.S. European Command, U.S. Africa Command, and U.S. Joint Forces Command.

Witnesses:

Admiral James G. Stavridis, USN
Commander, U.S. European Command

General William E. “Kip” Ward, USA
Commander, U.S. Africa Command

General James N. Mattis, USMC
Commander, U.S. Joint Forces Command


Wednesday, March 10, 2010 – 2:00pm – 2118 Rayburn – Open

The Air and Land Forces Subcommittee will meet to receive testimony on Army acquisition and modernization programs.

Witnesses:

Mr. Michael J. Sullivan
Director of Acquisition and Sourcing
U.S. Government Accountability Office

Dr. J. Michael Gilmore
Director, Operational Test and Evaluation
Office of the Secretary of Defense

Lieutenant General Robert P. Lennox, USA
Deputy Chief of Staff of the Army, G-8

Lieutenant General William N. Phillips, USA
Military Deputy to the Assistant Secretary of the Army
for Acquisition, Technology, and Logistics

Lieutenant General James D. Thurman, USA
Deputy Chief of Staff of the Army, G-3


Thursday, March 11, 2010 – 3:00pm – 2261 Rayburn – Open

The Defense Acquisition Reform Panel will meet to receive testimony on Administration perspectives on managing the defense acquisition system and the defense acquisition workforce.

Witnesses:

Dr. Ashton B. Carter
Under Secretary of Defense for Acquisition, Technology & Logistics
U.S. Department of Defense

Mr. Shay Assad
Acting Assistant Secretary for Acquisition
Director, Defense Procurement and Acquisition Policy
U.S. Department of Defense

Ms. Elizabeth A. McGrath
Acting Deputy Chief Management Officer
U.S. Department of Defense

TBA

###

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Department of Defense Willing to do KC-X with only Boeing

In a post on BNET Industries, Matthew Potter notes that the Department of Defense is willing to go ahead with only Boeing bidding on the KC-X:

The Secretary of Defense Robert Gates in testimony to the House Armed Services Committee made it clear that the Defense Department and U.S. Air Force will release the Request for Proposal (RFP) for the new KC-X tanker and award a contract even if only Boeing (BA) submits a proposal. The Department hopes that the Northrop Grumman (NOC) and EADS (EADS:P) will submit a bid but will go forward with the planned contract even if they don’t.

In early December Northrop Grumman’s CEO sent a letter to the Air Force stating that due to the terms of the draft RFP they felt that it so favored Boeing that they and their partner EADS, parent of Airbus, would not submit a proposal. Northrop had won the contract in 2008 only to lose it on protest by Boeing with the Government Accountability Office (GAO) saying that the Air Force changed the requirements and was not completely fair to Boeing. An earlier attempt to award Boeing a lease for KC-767 aircraft collapsed amid scandals and Congressional desire to have contest.

Read the entire post Defense Department Willing To Do KC-X With Only Boeing Bid for more.

U.S. Army AFFIRMS FMTV Contract AWARD to Oshkosh Corporation — Press Release

U.S. Army AFFIRMS FMTV Contract AWARD to Oshkosh Corporation

OSHKOSH, Wis. — Feb. 12, 2010 — Oshkosh Corporation (NYSE:OSK) today announced the U.S. Army has affirmed the contract award to the Company, originally received on Aug. 26, 2009, to produce the Family of Medium Tactical Vehicles (FMTV).

The bids of all three competitors for the FMTV program were re-evaluated by the U.S. Army in response to recommendations made by the Government Accountability Office (GAO) following a review of competitors’ protests of the original contract award to the Company. The Army undertook an exhaustive review during this FMTV bidding process and applied fairness and rigor to its decision. Upon completion of a thorough, in-depth re-evaluation, the Army determined the contract would remain with Oshkosh. Additionally, the Army canceled the September 4, 2009, stop-work order it had issued pursuant to the GAO’s protest procedures. The Oshkosh contract allows the Army and U.S. taxpayers to begin realizing significant cost savings for the FMTV program.

“We are very pleased the Army affirmed its original decision that Oshkosh Corporation’s FMTV bid clearly represents the best overall value for the Army, the taxpayers and the Warfighter,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer. “Oshkosh Corporation, our employees and our suppliers stand ready to serve our customer, and we are delighted that the Army has yet again concluded that Oshkosh was the right choice. Our focus has always been on the Warfighter and making sure we deliver high-quality, high-performing vehicles on time.”

The FMTV rebuy program is a five-year, firm fixed-price requirements contract for the production of up to 23,000 vehicles and trailers, as well as support services and engineering. Oshkosh received the contract from the U.S. Army Tank-automotive and Armaments Command Life Cycle Management Command (TACOM LCMC) with an initial delivery order valued at $280.9 million for the production and delivery of 2,568 trucks and trailers.

The FMTV is a series of vehicles consisting of up to 23 variants and 17 different models, ranging from 2.5-ton to 5-ton payloads. Oshkosh already produces the Army’s Family of Heavy Tactical Vehicles (FHTV) and works with nearly every one of the FMTV current component suppliers across the country as integral partners in other military programs.

Oshkosh is the only current manufacturer of both medium and heavy tactical wheeled vehicles in the U.S. defense industry, having produced more than 70,000 military-class vehicles in its manufacturing facilities. Oshkosh’s manufacturing facilities have ample production capacity for all current and pending military vehicle programs, including the FMTV and the MRAP All Terrain Vehicle (M-ATV), as well as any surges in production. The company’s advanced and integrated assembly line facilities allow for the simultaneous production of several different vehicle models and variations. Oshkosh Corporation’s proven production capabilities were recently recognized by the National Center for Advanced Technologies (NCAT), which awarded Oshkosh with a 2009 Defense Manufacturing Excellence Award for its M-ATV launch team, which has exceeded delivery requirements for seven consecutive months.

Read more

GAO Decision affirms Major Army Conclusions Supporting Oshkosh FMTV Award; Denies Challenges to $440 Million Dollars in Savings And Nearly All Other Protestor Complaints — Press Release

GAO Decision affirms Major Army Conclusions Supporting Oshkosh FMTV Award; Denies Challenges to $440 Million Dollars in Savings And Nearly All Other Protestor Complaints

OSHKOSH, Wis. — Dec. 17, 2009 — The U.S. Army’s conclusion that Oshkosh Corporation (NYSE: OSK) proposed the lowest price and has the capability and experience to build the Family of Medium Tactical Vehicles (FMTV) was unchallenged by the Government Accountability Office’s (GAO) decision, released in redacted form today. The decision significantly expands on the GAO’s press release of December 14, 2009, regarding the protests against the U.S. Army’s award decision by BAE Systems and Navistar Defense.

The decision by the GAO upheld only two narrowly-defined aspects of the protests against the U.S. Army by the disappointed bidders, rejecting all of the numerous other protest grounds raised during the three-month protest process which covered virtually every aspect of the evaluation.

The GAO determined that the Army erred in evaluating one element of the broader production capability subfactor. To address this, the GAO recommended that the Army re-evaluate the offerors’ proposals as to this element and also determine whether there was any possible impact on a second element. These elements are just two of seven elements in the production subfactor of the capability evaluation factor, all of which receive less weight than price. The GAO provided no opinion as to whether the re-evaluation of these two elements would in fact change the award decision by the Army.

The Oshkosh proposed price is significantly lower than what the Government is currently paying the incumbent FMTV contractor and was revealed today to be nearly $440 million lower over the life of the contract than that proposed by incumbent BAE. Widely publicized protestor complaints relating to Oshkosh’s price, armored cab design, financial stability and manufacturing prowess all were denied by the GAO. The GAO stated in its decision, “With the exception of two areas, we find that the [Army’s] evaluation was reasonable.” Oshkosh Defense was awarded the contract on August 26, 2009.

“After a thorough acquisition process by the Army that began nearly seven months ago, followed by formal protests that took three months to resolve, we believe the Army will quickly and appropriately address the GAO’s recommendations,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer. “We believe that in its review, the Army will find that Oshkosh Corporation was and continues to be the correct choice for the FMTV contract, providing proven capability and the best value to the Army and the taxpayer.”

As the GAO’s decision reaffirms, Oshkosh was awarded the contract because the company bid the FMTV at a very competitive price while receiving excellent evaluations for meeting vehicle production and delivery requirements, including any possible production surges that might be required by the Army.

The U.S. Army has 60 days from December 14, 2009 to act on the GAO’s recommendations and report its findings.

“Oshkosh plans to build the FMTV and meet all of the Army’s objectives while saving hundreds of millions of taxpayer dollars that the Army can use for other pressing requirements,” Bohn said. “And we will do this without impacting our other existing or proposed military vehicle contract programs.”

Bohn added, “It is important to realize the GAO’s decision did not recommend that the proposals be recompeted or revised, nor did it recommend termination of our contract. We believe that the redacted decision issued today further supports our assessment that Oshkosh is in a strong position to retain the contract when the two narrow issues on which the protests were upheld are reconsidered.”

Oshkosh remains the only current manufacturer of both medium and heavy tactical wheeled vehicles in the U.S. defense industry, having produced more than 70,000 military-class vehicles in its manufacturing facilities. Oshkosh Corporation’s proven production capabilities were recently recognized by the National Center for Advanced Technologies (NCAT), which awarded Oshkosh with a 2009 Defense Manufacturing Excellence Award for its M-ATV launch team, which has exceeded delivery requirements for every month since the contract award on June 30, 2009.

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 Corp. 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, log on to www.oshkoshcorporation.com.

®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.

# # #

Forward-Looking Statements

This press release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include risks related to the required increase in the rate of production for the M-ATV contract and the amount, if any, of additional orders for M-ATVs that the Company may receive; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during a global recession and credit crisis; the duration of the global recession, which could lead to additional impairment charges related to many of the Company’s intangible assets; the expected level and timing of U.S. Department of Defense procurement of products and services and funding thereof, including the outcome of the formal protests of the Family of Medium Tactical Vehicles (FMTV) award to the Company; risks related to reductions in government expenditures and the uncertainty of government contracts; the consequences of financial leverage associated with the JLG acquisition, which could limit the Company’s ability to pursue various opportunities; risks related to the collectability of receivables during a recession, particularly for those businesses with exposure to construction markets; risks related to production delays as a result of the economy’s impact on the Company’s suppliers; the potential for commodity costs to rise sharply, including in a future economic recovery; risks associated with international operations and sales, including foreign currency fluctuations; and the potential for increased costs relating to compliance with changes in laws and regulations. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this press release.

Oshkosh Corporation Believes the Army’s FMTV Award Decision Will Be Maintained — Press Release

Oshkosh Corporation Believes the Army’s FMTV Award Decision Will Be Maintained

OSHKOSH, Wis. — Dec. 14, 2009 — Oshkosh Corporation (NYSE:OSK) today announced it was informed by the Government Accountability Office (GAO) of its decision regarding the protest of the Family of Medium Tactical Vehicles (FMTV) contract, awarded to Oshkosh on August 26. The majority of the protesters’ claims were denied, including challenges to the evaluation of the Oshkosh Corporation price.

“At Oshkosh, we appreciate the GAO’s thorough review and welcome the Army’s re-evaluation of the two narrow issues recommended for reconsideration. We believe that our FMTV offer was, and continues to be, the best value for the U.S. Army, our troops and the U.S. taxpayer,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer. “It is important to realize that today’s decision did not recommend proposal revisions nor did it recommend termination of our contract.”

Bohn added, “We believe that when these narrow issues are reconsidered, the Army’s decision to award Oshkosh Corporation the FMTV contract will be maintained.”

Oshkosh Corporation will continue to lean forward on the FMTV program, including preparation for the construction of a new 150,000-square-foot electrocoat (E-Coat) paint facility at its Oshkosh, Wis., campus in support of FMTV production and possibly other Oshkosh vehicle programs.

Oshkosh remains the only current manufacturer of both medium and heavy tactical wheeled vehicles in the U.S. defense industry, having produced more than 70,000 military-class vehicles in its manufacturing facilities. Oshkosh Corporation’s proven production capabilities were recently recognized by the National Center for Advanced Technologies (NCAT), which awarded Oshkosh with a 2009 Defense Manufacturing Excellence Award for its M-ATV launch team, which has exceeded delivery requirements for every month since the contract award on June 30, 2009.

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 Corp. manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Medtec®, Jerr-Dan®, BAI™, 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, log on to www.oshkoshcorporation.com.

®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.

Conflict Over Award Fees Within Federal Government

August 16, 2009 by Matthew Potter · Comment
Filed under: BNET, Syndicated Industry News 
August 7, 2009 -- Several months ago the Government Accountability Office (GAO) reviewed a large number of defense and other Federal contracts to see how award fees...

USCG Cutter Contract Protested

One of the losing bidders on a contract to build new cutters for the US Coast Guard, Marinette Marine, protested the award to Bollinger Shipyards for a new class of small ships the Milwaukee Journal-Sentinel reports.. The initial contract is for $80 M and will begin a program that might see up to 34 ships procured. This program arose out of a failed attempt to upgrade existing USCG ships by extending the hull and adding capability. Bollinger was heavily involved in that program, and some feel that the past performance there should have disqualified them from participating in this contract. Marinette Marine has previously built other ships for the USCG as well. The Government Accountability Office (GAO) has 100 days to rule on the protest. Normally the contract is put on hold while the protest is resolved.

Seattle Times’ Analysis of Boeing Contract Win

June 18, 2008 by admin · Comment
Filed under: Boeing, Northrop Grumman Corp., Protest, U.S. Air Force 

In this article entitled Boeing Wins Tanker Protest, But Drama Is Far From Over, the Seattle Times states:

The saga of the Air Force refueling tanker contract is not over by a long shot, though Boeing won a huge victory Wednesday when the Government Accountability Office (GAO) comprehensively backed the company’s protest of the initial contract award.

Read the original article here.

BAE Systems Protests U.S. Army’s Family of Medium Tactical Vehicles Rebuy Decision

ARLINGTON, Va.--(BUSINESS WIRE)--BAE Systems has filed a protest with the U.S. Government Accountability Office (GAO), asking the agency to review the decision by the U.S. Army to award a contract to a competitor for the Family of Medium Tactical Vehicles (FMTV) rebuy program. After a detailed analysis of the information provided by the Army, before and during the formal competition debrief, the Company believes that the Army did not properly evaluate the proposals, consistent with the Governmen

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UnitedHealth Military & Veterans Services Statement on the TRICARE South Region Contract Protest

MINNEAPOLIS--(BUSINESS WIRE)--The U.S. Government Accountability Office (GAO) today announced it has sustained a protest of the Department of Defense TRICARE South Region Managed Care Support contract award to UnitedHealth Military & Veterans Services. Based on procurement protocol, the Department of Defense will review the recommendations issued by GAO and decide how to proceed with the procurement. “UnitedHealth Military & Veterans Services made a very strong proposal to the Depa

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Aetna Statement on TRICARE North Region Contract Protest

HARTFORD, Conn.--(BUSINESS WIRE)--Aetna (NYSE: AET) learned today that the U.S. Government Accountability Office (GAO) has sustained a protest by an unsuccessful bidder of the award to Aetna Government Health Plans of the Department of Defense’s TRICARE North Region Managed Care Support contract. Based on procurement protocol, the Department of Defense will review the recommendations issued by the GAO and determine how to proceed with the procurement. “Aetna Government Health Plans i

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BAE Systems Responds to U.S. Government Accountability Office’s Family of Medium Tactical Vehicles Protest Ruling

HOUSTON--(BUSINESS WIRE)--The U.S. Government Accountability Office (GAO), the investigative arm of Congress, today informed BAE Systems that it has ruled in favor of a key element of the company’s protest to the U.S. Army’s Family of Medium Tactical Vehicles (FMTV) rebuy contract. In reaching this decision, the GAO said: “Our review of the record led us to conclude that the Army’s evaluation was flawed with regard to the evaluation of Oshkosh’s proposal under the c

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DynCorp International Files Protest of Shift in Afghan Police Training Contract

FALLS CHURCH, Va.--(BUSINESS WIRE)--DynCorp International LLC, a wholly-owned subsidiary of DynCorp International Inc. (NYSE:DCP), has filed a pre-award protest with the Government Accountability Office (GAO) concerning the planned procurement of training and mentoring of police and government personnel in Afghanistan by the Department of Defense through task orders issued by the U.S. Army Space and Missile Defense Command Counter-Narcoterrorism Technology Program Office (CNTPO). DynCorp Interna

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U.S. Army Affirms FMTV Contract Award to Oshkosh Corporation

OSHKOSH, Wis.--(BUSINESS WIRE)--Oshkosh Corporation (NYSE:OSK) today announced the U.S. Army has affirmed the contract award to the Company, originally received on Aug. 26, 2009, to produce the Family of Medium Tactical Vehicles (FMTV). The bids of all three competitors for the FMTV program were re-evaluated by the U.S. Army in response to recommendations made by the Government Accountability Office (GAO) following a review of competitors’ protests of the original contract award to the Com

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Government Accountability Office Rules In Favor of DynCorp International on Afghanistan Police Training

FALLS CHURCH, Va.--(BUSINESS WIRE)--The United States Government Accountability Office (GAO) announced its ruling today in favor of DynCorp International’s (NYSE:DCP) protest of the issuance of task order request for proposals (TORPs) by the Department of the Army for training and facilities support for the Ministry of Interior and Afghan National Police. DynCorp International filed the protest in December of 2009 after learning the civilian police training contract would not be competitiv

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