Backers of Two Tanker Contracts Want To Stay Anonymous

The Wichita Eagle reports that the a group backing building both the Boeing and EADs tankers, doesn’t want to reveal its backers:

The investors backing a campaign asking the government to split its contract for aerial refueling tankers between Boeing and Northrop Grumman want to remain anonymous for now. The campaign is called Build Them Both. “We are funded by a group of investors who have asked to remain nameless at this time,” said the effort’s campaign manager, Carrie Giddens. The group is not union sponsored and does not have ties to either Northrop or Boeing, Giddens said in an e-mail exchange. However, “we have sought out funding from both companies, their suppliers and unions who would be impacted by building them both.” The requests went out in the past two weeks. On Monday, Giddens called Northrop’s decision to pull out of the bidding process “bad news for American workers, our men and women in uniform, and for the taxpayer.” With only one company seeking a contract, 50,000 jobs that would have been created won’t be, Giddens said in the statement. “Without an ongoing competition there is no way to control costs, to the detriment of our military and taxpayer.”

DOD CONTRACTS for March 15, 2010

DOD CONTRACTS for March 15, 2010
March 15, 2010

NAVY

Navistar Defense, LLC, Warrenville, Ill., is being awarded a $178,262,162 modification to delivery order #0013 under previously awarded firm-fixed priced contract (M67854-07-D-5032) for the procurement of 1,222 independent suspension system kits and aluminum catcher plates for the Mine Resistant Ambush Protected vehicles. Work will be performed in West Point, Miss., and the period of performance is expected to be completed by the end of March 2011. Contract funds will not expire by the end of the current fiscal year. The Marine Corps Systems Command, Quantico, Va., is the contracting activity.

Northrop Grumman Corp., Integrated Systems, Bethpage, N.Y., is being awarded a $94,629,000 not-to-exceed advance acquisition contract for long lead materials and support associated with the manufacture and delivery of four low rate initial production Lot 3 E-2D Advanced Hawkeye aircraft. Work will be performed in Syracuse, N.Y. (32.6 percent); various locations within the United States (23.7 percent); Bethpage, N.Y. (15.5 percent); Dallas, Texas (12.4 percent); Menlo Park, Calif. (9.8 percent); and Woodland Hills, Calif. (6 percent), and is expected to be completed in May 2011. Contract funds will not expire at the end of the current fiscal year. This contract was not competitively procured. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-10-C-0044).

L-3 Communications Corp., Salt Lake City, Utah, is being awarded a $37,490,848 modification to a previously awarded fixed-price-incentive contract (N00019-09-C-0059) to exercise an option for the manufacture, test, and delivery of 11 AN/SRQ-4(Ku) radio terminal sets for ship small surface combatants and 51 AN/ARQ-59 RTSs for the MH-60R aircraft, including technical data. These upgraded Ku-band systems will extend existing Hawklink connectivity from small surface combatants to the aircraft carrier and increase data rates between MH-60R to surface combatants. Work will be performed in Salt Lake City, Utah, and is expected to be completed in March 2013. 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.

Raytheon Technical Services Co., LLC, Indianapolis, Ind., is being awarded an $18,853,530 firm-fixed-price modification to a previously issued basic order agreement (N00019-05-G-0008) to exercise an option for the procurement of 36 LAU-115D/A launchers and 82 LAU-116B/A launchers for the F/A-18 aircraft. Work will be performed in Indianapolis, Ind., and is expected to be completed in September 2012. 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.

Maersk Line, Ltd, Norfolk, Va., is being awarded an $8,630,000 firm-fixed-price contract for a nine-month time charter of tanker MT Samho Moonstone, currently a foreign-flag vessel, which will be re-named and U.S.-flagged upon delivery to the government. The ship's primary mission is to move petroleum for the Department of Defense between ports in the Far East. This contract includes one 30-day option which, if exercised, would bring the cumulative value to $9,500,000. Work is expected to commence May 2010 and is expected to be completed within 270 calendar days or, if all options are exercised, within 300 calendar days. The contract is expected to be funded in fiscal year 2010 and funds will not expire at the end of the fiscal year. This contract was competitively procured, with 11 offers received. Military Sealift Command, Washington, D.C., is the contracting authority (N00033-10-C-5410).

Insitu, Inc., Bingen, Wash., is being awarded an $8,576,814 firm-fixed-price contract for the procurement of technical services in support of the ScanEagle unmanned aerial system to support intelligence, surveillance, and reconnaissance services. In addition, this contract provides for six critical spare kits and nine SkyHook recovery system modifications. Work will be performed in Bingen, Wash., and is expected to be completed in December 2010. Contract funds in the amount of $8,433,786 will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-2. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-10-C-0045).

Raytheon Co., Integrated Defense Systems, San Diego, is being awarded a $7,500,000 modification to previously awarded contract (N00024-08-C-5122) for the exercise of FY 10 options for performing as the platform system engineering agent for the Ship Self Defense System (SSDS). In the course of this effort, Raytheon will be responsible for the integration of complex war-fighting improvement - including components associated with the dual-band radar and Rolling Airframe Missile Block 2 - into the modular SSDS. SSDS is a combat system that intends to integrate and coordinate all of the existing sensors and weapons systems aboard a ship. Raytheon will integrate, test, and provide certification support for the government-furnished equipment/information required for the CVN/amphibious ship combat system. Work will be performed in San Diego (90 percent); Tewksbury, Mass. (2.5 percent); Portsmouth, R.I. (2.5 percent); St. Petersburg, Fla. (2.5 percent); and Tucson, Ariz. (2.5 percent). Work is expected to be completed by September 2010. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

AIR FORCE

Kaman Precision Products, Inc., Orlando, Fla., was awarded a $46,253,422.83 contract modification which will provide a quantity of 12,994 joint programmable fuze systems. At this time, entire amount has been obligated. 679 ARSS, Eglin Air Force Base, Fla., is the contracting activity (F08626-98-C-0006, P00130).

Raytheon Co., Tucson, Ariz., was awarded a $19,505,458 contract which provides an Advanced Medium Range Air-to-Air-Missile system improvement program. At this time, the $2,770,000 has been obligated. 696 ARSS, Eglin Air Force Base, Fla., is the contracting activity (FA8675-10-C-0105).

Booz Allen Hamilton, Herndon, Va., was awarded a $20,355,914 contract which will provide secure collaborative technologies and cyber security to Air Mobility Command. At this time, $455,000 has been obligated. 55 Contracting Squadron, Offutt Air Force Base, Neb., is the contracting activity (SP0700-98-D-4002).

Rockwell Collins, Inc., Cedar Rapids, Iowa, was awarded an $11,111,767 contract modification which will provide for systems development, integration, and verification phase of the P5 range instrumentation waveform. This waveform is in support of the F-22 and F-35 aircraft. At this time, $5,000,000 has been obligated. 689 ARSS, Eglin Air Force Base, Fla., is the contracting activity (FA8678-05-C-0141).

ARMY

Global Strategies Group North America, Inc., Frederick, Md., was awarded on March 10, 2010, an $18,745,406 firm-fixed-price contract for 103 containerized kitchens and authorize stockage list spares. Work is to be performed in Fredrick, Md., with an estimated completion date of Oct. 31, 2012. Bids were solicited on the World Wide Web with six bids received. U.S. Army Research, Development & Engineering Command Contracting Center, Natick Contracting Division, Natick, Mass., is the contracting activity (W911QY-05-D-0004).

Bethel Services, Inc., Bethel, Ark., was awarded on March 10, 2010, an $18,119,555 firm-fixed-price contract for 19 cold weather kits. Work is to be performed in Bethel, Ark., with an estimated completion date of April 29, 2011. One bid was solicited with one bid received. U.S. Army Research, Development & Engineering Command Contracting Center, Natick Contracting Divison, Natick, Mass., is the contracting activity (W911QY-05-C-0047).

Scott Reliance, JV, Chicago, Ill., was awarded on March 10, 2010, a $13,668,906 firm-fixed-price contract for the construction of an Army Reserve Center. Work is to be performed in Joliet, Ill., with an estimated completion date of Feb. 3, 2012. Bids were posted on the World Wide Web with eleven bids received. U.S. Corps of Engineers, Louisville District, Louisville, Ky., is the contracting activity (W912QR-10-C-0013).

Honeywell, Minneapolis, Minn., was awarded on March 10, 2010, a $7,342,153 cost-plus-fixed-fee contract for the Defense Advanced Research Project Agency, funding Honeywell to design, develop, and deliver a demonstration of a gyroscope with a goal capability of absolute reference navigation in a compact, four diameter optically integrated gyro-head. Work is to be performed in Minneapolis, Minn. (47 percent); Somerset, N.J. (19 percent); Pasadena, Calif. (17 percent); Glendale, Ariz. (16 percent); and King of Prussia, Pa. (1 percent), with an estimated completion date of May 7, 2010. Defense Advanced Research Projects Agency, Arlington, Va., is the contracting activity (HR0011-09-C-0019).

DEFENSE LOGISTICS AGENCY

MOOG, Inc., East Aurora, N.Y., is being awarded a maximum $6,232,476 firm-fixed-price contract for V22 aircraft parts. There are no other locations of performance. Using service is Air Force. There were originally two proposals solicited with two responses. Contract funds will not expire at the end of the current fiscal year. The date of performance completion is March 2012. The Defense Logistics Agency, Philadelphia (DSCR-ZC), Philadelphia, Pa., is the contracting activity (SPM4A1-06-G-0002-THA7).

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Wall Street Journal Says Trans Atlantic Defense Deal Falters

The Wall Street Journal has weighed on the KC-X Tanker bid process, in an article entitled “Trans Atlantic Defense Deal Falters.” The article notes:

The decision by Northrop Grumman Corp. and its European partner this week to drop out of a $40 billion competition to build aerial-refueling tankers for the Air Force is the latest example of how trans-Atlantic defense ventures have faltered. Many observers view the size of the tanker deal, and the prominent role played by Northrop partner European Aeronautic Defence & Space Co., as the most significant instance of how trans-Atlantic partnerships can get tripped up. Noorthrop billboard in Alabama in 2008 advertised a future tanker plant, but the company quit the project. “There’s no doubt that this outcome will reinforce the long-held understanding in Europe that the U.S. defense market is highly protected,” said Alex Nicholl, a specialist on European defense companies at the London-based International Institute for Strategic Studies. “This is not the first time that the rules of a U.S. competition have been rewritten to suit the American competitor. No doubt it won’t be the last.”

Read the entire article at theJournal.

Boeing Has Clear Sailing On KC-X

Now that Northrop has decided not to bid on the contract the pressure is on Boeing. The Chicago based company has made several announcements...

Navy Awards Contracts To Streamline Ship Based IT

The U.S. Navy awarded Lockheed Martin and Northrop Grumman omnibus contracts to support their Consolidated Afloat Networks and Enterprise Services (CANES) program. This will look at development of new IT networks for their ships while also reviewing existing systems with a goal of reducing the number and consolidating them. Because ships take a long time to build each ship even if it is of a similar class may have updated or newer systems on board. This means that support can be fragmentary adding cost and time.

The Northrop contract is worth over $700 million and the Lockheed one almost a $1 billion if all options are exercised. Its first goal is to develop a new standardized system for use with Navy ships. To make it a harder problem this will also have to have the ability to integrate with other services systems for join operations. IT programs like this have a history of delays and cost overruns as they are hard to do. This might be an exception if the Navy locks requirements early and uses a spiral development path to add features and capabilities in discrete implements.

Northrop Might Wish It Had Not Won this Contract

Virginia's Senate passed legislation restructuring the management of their massive IT out-sourcing contract with Northrop Grumman. The contract is...

Harris To Make Radios For Northrop Grumman Battle Command System

Northrop Grumman awarded Harris Corporation a contract to provide radios for the Integrated Air and Missile Battle Command System (IBCS). The IBCS is being made for the U.S. Army by Northrop. As its name implies it will provide command and control for air and missile defense missions. Harris’ contract is for five years and is worth $25 million.

The Army has invested heavily over the last thirty years in systems such as the PATRIOT and THAAD to provide extended air and missile defense. They also procured Avenger systems that use AIM-120 air-to-air missile from vehicle mounts. These and their sensors need to be netted in such a way that a complete air and missile picture can be developed to best assign resources. Key to all of this is of course secure and redundant communications requiring advanced radios such as Harris is making for the IBCS.

LA Times Has Good Summary Of The KC-X Situation

The Los Angles Times today published a short article by W.J. Henigan that summarizes the current situation. He stresses that Los Angeles based Northrop Grumman (NOC) not participating may make the whole attempt moot again. He writes:

“But there are already signs that the competition could be derailed once again. Century City-based Northrop Grumman Corp., one of the two contenders, has threatened to withdraw its bid, accusing the Air Force of writing specifications that favor its rival, Boeing Co.”

The rest of the article may be found here.

Northrop Grumman (NOC) Believes Better Is Ahead

Northrop Grumman (NOC) became the latest of the large defense contractors to report their most recent quarter’s earnings. While the company...

KC-X Fully Funded In 2011 Budget

President Obama sent his 2011 budget to Congress yesterday. It contains as part of its record defense spending $12 billion for the development and initial production of the new KC-X tanker. The Administration and the Air Force have a goal of awarding a contract this Summer and beginning the development of the new aircraft fairly fast.

This plan is fraught with difficulties based on the history of the program. The two main competitors, Boeing (BA) and the Northrop Grumman (NOC) team, have their own supporters in Congress and their own issues with the approach the Air Force is taking. It can be expected that the source selection will be difficult and the chances for a protest fairly high if both groups do submit bids.

First Littoral Combat Ship (LCS) Commissioned

02/08/10 — The post was updated to make clear that LCS-1 is under construction by Lockheed Martin and not Northrop Grumman as previously stated.  Your humble editor got confused.

In the last week the U.S. Navy commissioned the General Dynamics built U.S.S. Independence (LCS-2). LCS-1 is under construction by Lockheed Martin. The original plan for the class was to have each company build about half. The two designs are completely different to say the least with GD building a tri-marine hull and Northrop a more traditional one. Both ships are outfitted the same with weapons and sensors. The U.S.S. Freedom (LCS-1) and the Independence are ships around 400 feet long and displacing about 3,000 tons.

If all goes well the Navy will build up to 55 of the ships. The most recent plan discussed was after completion of these two and one more to each design that a new contract will be competed and only one design will be built. Both ships have suffered from cost and schedule overruns and the optimistic initial cost assumptions were not met leading to the program restructure. If the plan is executed these ships and the new destroyer will be the main force of the U.S. Navy after 2020.

KC-X Tanker RFP Out In February

At a recent press availability the U.S. Air Force Chief of Staff, General Schwartz, said that he expects the final RFP for the KC-X contest to be released next month. He also stated that it will be little changed from the draft RFP. Both Northrop (NOC) and Boeing (BA) have been submitting questions and comments on the draft RFP and some of these will be addressed in the final one. The RFP will be released a few weeks after the 2011 Defense Budget goes to Congress which is planned for 2 February.

Schwarz did say that the final RFP may have changes based on recent comments by Northrop and its partner EADS (EADS:P) that they might not participate as they felt the RFP favored Boeing too much. Both groups had also commented on the use of a fixed price development contract and how it transferred too much risk to the contractor from the Government.

Northrop Grumman Sticks To Guns On Transferring Risk

Northrop Grumman is continuing its war of words over the idea that the Defense Department should use fixed price contracts to minimize their risk....

Air Force Buys Five Global Hawks

Despite the debate in Congress over how many Global Hawks could be ordered with the 2010 money the Air Force went ahead and used their Continuing Resolution Authority (CRA) money to buy five. The House had written into their version of the Defense Appropriations bill that only three could be purchased due to concerns with delays in the program. The Senate had said five. The bill currently is in Conference as the two versions are reconciled. It is proving to be a long process as their are several key differences between the two.

Northrop Grumman was awarded a contract worth a little over $300 million for the five aircraft plus supporting equipment.

Nortrop Grumman Faces Cuts to Global Hawk Production

A little discussed part of the House’s version of the Defense Appropriations Bill is a cut in number of the Global Hawk strategic UAV from five to two. This was done because the House felt that the development of the latest version was behind schedule so some procurement dollars could be saved by delaying sixty percent of the planned quantity. Northrop Grumman feels that the schedule has been caught up and the program is on track. The Senate has supported the full buy of five. That means that the exact number will have to be worked out in the Conference Committee and hopefully for Northrop that will be the full amount. If the aircraft are cut Northrop will have to lay off some workers and it may lead to a production break in the line. This would seriously impact future buys as there will be a cost associated with starting the line up again.

Defense Department To Review Conflict Of Interest Rules Too Late For Northrop

Northrop Grumman announced that they would sell their SETA arm TASC earlier this month. This was due to new conflict of interest rules limiting...

Northrop Moving Out Of SETA By Selling TASC

Northrop Grumman has come to an agreement to sell their SETA line for $1.65 billion. This is due to worries about conflicts of interest limits...

DoD Early Estimates Two Tankers Have High Costs

Prior to the release of the latest RFP for the KC-X tanker program some in Congress and the media mooted using a split award for the aircraft. This would allow for faster fielding of tankers to expedite replacement of the older KC-135’s. It would also possibly reduce the chance of a protest by either Northrop or Boeing as well as spreading the contract around to different states. The biggest issue with the idea is that it would add cost to the program. Through the necessity of having two separate support tails the overall program would be more expensive. There would be two training tracks, sets of support equipment and parts pools alone. The aircraft also may not be complimentary. The DoD estimated back in April that the total additional cost would be over $14 billion. Obviously neither the Air Force or the U.S. Government has this kind of money available to support the idea. It would have to be payed for at the expense of other Air Force or DoD programs. It may be that cost estimates with more refinement are created that reduce this, but right now the plan is one company and one aircraft.

Northrop And Virginia Might Have Bitten Off More IT Support Then They Could Chew

The State of Virginia signed an ambitious contract with Northrop Grumman to outsource their IT services several years ago. Now it has not gone as...

Special Defense Procurement News Page On The KC-X Tanker Contest

As part of Defense Procurement News we have set up a special site to gather information and discussions about the new U.S. Air Force KC-X aerial tanker contest. KC-X Tanker News may be found here. We will try to have all that we can find on EADS, Boeing and Northrop Grumman’s efforts to win this major contract.

Northrop To Provide Laser Targeting Systems To The U.S. Army

The U.S. Army awarded Northrop a contract to build lightweight laser targeting systems. These will be mounted on a variety of weapon systems. The initial contract is worth about $73 million but if all options are exercised it could generate over $600 million in revenue. The company has been making these types of systems since 2002.

The U.S. military has invested a great deal of money into these kind of systems providing a technical advantage over their adversaries. They not only provide the ability to detect and classify enemy in low or bad visibility but can be used to guide different weapons. These types of systems are fully integrated and are able to provide information to other Army systems and units via digital communications.

Reading Tea Leaves In Northrop’s Win Of KC-10 Maintenance Contract

The award to Northrop Grumman of a contract to support the U.S. Air Force's KC-10 tanker fleet is making people think that Boeing will have issues...

Northrop Grumman supports KC-10

HERNDON, Va., Oct. 5 (UPI) -- The U.S. Air Force contracted Northrop Grumman Corp. to provide logistics support for the fleet of the KC-10 Extender refueling tanker aircraft.

USAF gets plug-and-play sensors

ROLLING MEADOWS, Ill., Oct. 2 (UPI) -- The U.S. Air Force awarded Northrop Grumman Corp. a $153 million contract for a self-contained laser targeting and sensor system with "plug-and-play" ability.

Alabama Senator Trys To Intervenes In Tanker Competition

Senator Sessions of Alabama is planning on amending the 2010 Defense Appropriations Bill to make the Air Force provide cost data to Northrop from...

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  • Contracts for March 19, 2010
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  • Contracts for March 19, 2010
  • Boeing Can’t Be Seen As Taking Advantage Of Being Sole Bidder
  • Boeing Completes Preliminary Design of Free Electron Laser Weapon System
  • House Armed Services Committee: Hearing on the FY 2011 Budget Requests from the U.S. Southern Command and the U.S. Northern Command
  • House Armed Services Committee: Skelton Statement on Anniversary of Iraq Invasion
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  • DOD CONTRACTS for March 18, 2010
  • Today in the Department of Defense, Friday, March 19, 2010
  • Contracts for March 18, 2010
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  • House Armed Services Committee: Hearing on the FY 2011 Budget Requests from the U.S. Central Command, U.S. Special Operations Command, and U.S. Transportation Command
  • DOD CONTRACTS for March 17, 2010
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  • Contracts for March 16, 2010
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  • DOD CONTRACTS for March 15, 2010
  • Today in the Department of Defense, Tuesday, March 16, 2010
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  • Contracts for March 12, 2010
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  • Spirit AeroSystems Named to Boeing Tanker Supplier Team — Press Release
  • Contracts for March 11, 2010
  • Northrop Grumman Names Paul Russell to Lead Space Navigation Business Area
  • Northrop Grumman Awarded U.S. Army Europe Linguist Contract
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  • Lockheed Martin Awarded Arizona Support Center Contract for M-TADS/PNVS
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  • STOVL Jet Prepares for Vertical Landing
  • DOD CONTRACTS for March 11, 2010
  • US Navy: Flag Officer Announcement

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