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F-16I “Soufa”
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As part of the 1979 Camp David peace accords, the USA offered substantial long-term military aid packages to Israel and Egypt. Aside from the geopolitical considerations involved, these packages have been good for American industry because the dollars must be spent on American goods.

While Egypt did not and does not have a significant independent defense industry, Camp David’s aftermath saw a major shift away from Soviet weaponry and toward American alternatives on land, sea, and air. The recent $850 million request for Abrams tanks is a good example. In contrast, Israel has a globally competitive defense industry; because it can allocate American foreign assistance dollars to pay American firms, however, the country always finds itself balancing investment in domestic capabilities and spending against its pool of “free” American industry purchases. Or even investing in American plants and jobs to produce Israeli designs.

Amidst rumors of a planned attack by Iran, Syria, and Hezbollah in late 2007, Israel has made $1.1 billion worth of military purchase requests so far in August 2007. Almost all concern her air force, the Cheyl Ha’avir...

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It is said that amateurs study tactics, while professionals study logistics. Analysts study procurement, because this is where the decisions are taken that affect both the range of thinkable tactics, and the logistics infrastructure that underpins them. Hence the importance of programs like the USA’s newly-launched Defense Transportation Coordination Initiative (DTCI).

At present, the US Department of Defense’s shippers in the continental US (CONUS) are handled by individual depots, bases, and other locations. Each location independently selects the transportation modes, level of service, and transportation providers they need, and so multiple information systems are employed to execute and manage shipment activity. There is no centralized planning, coordination, or control. The system works, because each shipment is managed. Is it as efficient as it could be? No.

Hence DTCI, which is focused on increasing operational effectiveness, while simultaneously obtaining efficiencies by reducing cycle times, and using best practices such as increased consolidations / load optimization and modal conversions. The premise is for DoD to competitively award a long-term contract with a world-class transportation coordinator/coordinator(s) that will help it achieve these goals, leveraging current commercial capabilities and proven practices save up to 20% as it manages, consolidates, and optimizes freight movements. In the business world, this growing trend is called 3rd Party Logistics (3PL).

The DTCI contract has a multiple phased implementation approach – which DID describes below in our Spotlight article, along with the program’s history & issues faced, the recent announcement of a winning team, the known competitors, and a collection of useful reference resources…

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Mk 45 firing
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BAE Systems has announced a Basic Ordering Agreement (BOA) from the U.S. Navy for up to $368 million to build and refurbish naval weapon systems, and provide support services over the next 5 years. Potential orders received under this BOA are expected later this year and will be carried out by BAE Systems’ facilities in Minneapolis, MN and Louisville, KY.

The BOA covers a wide range of BAE Systems’ programs including the transition of production of the Mk 110 57mm naval gun system from low-rate to full; the overhaul, manufacture and upgrade of the Mk 45 5-inch (127mm) naval gun for the CG-47 Cruiser Modernization program, the Mk 75 76mm gun mount, the Mk 42 extended range guided missile handling mechanism, the Mk 32 surface vessel torpedo tubes (SVTT), and the Mk 36/53 decoy launcher systems (DLS); the manufacture of gun barrels; the overhaul of turbine pump ejection systems (TPES); and work associated with minor caliber guns. BAE Systems release.

Computer Sciences Raytheon received a contract for $816.2 million for Eastern Range Technical Services to provide operations, maintenance, sustainment of critical range and launch processing systems that support the launch processing mission of the 45th Space Wing and its launch customers at Cape Canaveral Air Station. CSR is a joint venture partnership of Computer Sciences Corporation (CSC) and Raytheon Technical Services Company, and they have held this contract since 1988. Cape Canaveral, meanwhile, is famous for being the home site of all NASA space launches; the 45th Space Wing is also busy with other projects.

The scope of this acquisition will include all critical range systems and associated support systems. Service include downrange facilities support, base and range local area network/metropolitan area network (LAN/MAN) service, and other minor technical systems support required for successful range mission accomplishment. At this time, all funds have been obligated. 45 CONS/LGCZR at Patrick Air Force Base FL issued the contract (FA2521-07-C-0011).

MW Builders of Texas Inc. in Temple, TX received a $42.2 million firm-fixed-price contract for design and construction of a whole barracks complex at Fort Hood, TX. Work is expected to be completed by July 31/09. There were 187 bids solicited on Dec. 4, 2006, and 3 bids were received. The U.S. Army Engineer District, Fort Worth, Texas, is the contracting activity (W9126G-07-C-0032).

Despite losing some of its training role and personnel to Fort Carson in Colorado, Ft. Hood remains the center of the US Army’s heavy brigade combat team firepower.

Maybe he could help…?
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The Army Corps of Engineers, Sacramento, CA has been issuing firm-fixed-price contracts for Sacramento River levee repairs. Sacramento is California’s state capital, and Governor Schwarzenegger must be relieved to hear the news; note his February 2006 release promising that the levees would be fixed before the flood season – which begins around November. His presence has turned Sacramento into California’s 3rd-biggest tourist destination; no point in spoiling it all now.

After a near-biblical rainfall in 2005-06, California’s 2006-07 winter rainy season turned out to be a bust, with rainfall in some places under half of annual averages. Work continues, however; death and taxes may be inevitable, but nobody can predict long-term weather.

So what, exactly, is going on? And who will be pumping… the levees up?

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LPH01 & LCVPs
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Babcock Marine’s Devonport Dockyard has received a GBP 30 million (about $59.5 million) for a major upgrade to the Royal Navy’s Plymouth-based helicopter carrier HMS Ocean [LPH 01]. The work is part of the developing Surface Ship Support Alliance, a new contracting approach that was a pre-requisite to approval of the Royal Navy’s new 65,000t CVF Queen Elizabeth Class carriers.

The 22,500t HMS Ocean is similar to some of the smaller LHD designs like the 21,300t French Mistral Class. Built to commercial standards, LPH01 carries a crew of 255, an aircrew of 206, and 480 Royal Marine Commandos; an additional 320 marines can be accommodated in a short-term emergency. The ship has capacity for 40 vehicles, but is not designed to land heavy tanks with its 4 Landing Craft Vehicle Personnel (LCVP) Mk 5s. Its main assets are up to 18 helicopters: usually 12 transport (EH101 Merlins, H-3 Sea Kings; H-47 Chinooks can only be refueled and serviced on deck) and 6 maritime/ scout/ attack (Lynx variants, and/or WAH-64D Apache). Secondary ship roles include training, a limited anti-submarine warfare role, humanitarian assistance, and acting as a base for anti-terrorist operations.

Events have forced the ship to remain at sea near more distant shores, however, and on longer voyages than originally anticipated Hence the priority on crew-related modifications. Not to mention some of the other changes…

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624J TRAM
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The John Deere Construction and Forrestry Corp. won a $40 million firm-fixed-price delivery order #0004 under previously awarded contract (M67854-07-D-5010) for the Tractor, Rubber Tired, Articulated Steering, Multipurpose Vehicles (TRAM) and training services. The TRAM is a modified Deere 624J wheel loader, sized to operate as four-in-one, multi-purpose bucket loader with a minimum capacity of 2.5 cubic yards, or as a forklift with 72-inch forks and a minimum lift of 10,000 pounds at 48-inch load center. It has a number of modifications including additional armored protection on the cab, and is used for combat engineering – an under-appreciated but vital discipline in the current security environment.

TRAMs are new – sort of…

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ISO 9001:2000 certified security contractor Triple Canopy in Herndon, VA has been receiving awards from The Joint Contracting Command, Baghdad, Iraq for services in theater.

Aug 22/07: A $6.8 million firm-fixed-price contract for internal security services for forward operating bases in Iraq. Work is expected to be completed by July 31, 2008. There were 3 bids solicited on July 29, 2007, and 3 bids were received. , is the contracting activity (W91GDW-07-A-4003).

Aug 13/07: A $5.6 million firm-fixed-price contract for internal security services in Iraq. The contract will be complete by Aug. 1, 2008, and was initiated on July 25, 2007 by The Joint Contracting Command in Baghdad, Iraq (W91GDW-07-A-4003).

Small business qualifier Chugach Government Services Inc. in Anchorage, AK received a $9 million firm-fixed-price contract for operation and maintenance of a water and wastewater treatment plant. Work at Fort Meade, MD, which is expected to be completed by Sept. 14, 2012. This was a sole source contract initiated on June 18, 2007. The U.S. Army Corps of Engineers, Baltimore, Md., is the contracting activity (W912DR-07-C-0028).