F/A-18C: testing…
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Jacobs Technology, Inc. in Tullahoma, TN won a $197.9 million cost-plus-award-fee, firm-fixed-price contract for the services and materials necessary to support the analysis, design, development, test, integration, deployment, and operations of information technology systems and services at the noted weapons test centers of China Lake, CA (90%) and Point Mugu, CA (10%).

Work is expected to be complete in March 2013. This contract was competitively procured via an electronic request for proposals, and 7 offers were received by the Naval Air Warfare Center (NAVAIR) Weapons Division at China Lake, CA (N68936-08-D-0016).

In our Friday August 11, 2006 article “US Ban on Russian Defense Firms Raises the Stakes,” DID discussed a number of potential developments that might be affected. Boeing featured prominently, via a potential $3 billion deal with Aeroflot for 787s, and a potential titanium deal with top titanium firm VSMPO-Avisma (soon to be Rosoboronexport) for a 50/50 Boeing joint venture. That endeavor could produce up to $4 billion in parts orders from Boeing over the next 10 years; plus up to $18 billion in contracts for Russian titanium products, and $5 billion on Russian engineering services, by 2030.

In August 2006, Boeing announced that joint venture deal. In June 2007, agreements were signed that began to formalize these promises – including side-deals re: 787s for Aeroflot, and Boeing’s ongoing involvement in Sukhoi’s regional jet program. Now, in December 2007, large contracts are beginning to flow…

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Around 1997/98, the Defense Logistics Agency changed their business practices, and entered into Prime Vendor long term sustainment contracts with various suppliers to provide materials needed to support the maintenance, repair, and operation (MRO) of its facilities. Items such as plumbing, electrical components, heating/ ventilation/ air conditioning (HVAC), lumber, fixtures, other hardware supplies, etc. would be included. The Prime Vendors need not make these items; the idea is to use purchasing power and commercial purchasing practices to consistently get the US Department of Defense the best prices on these civilian items, delivering them quickly and with little overhead.

These contracts are not small; collectively, they represent billions of dollars each year. Unless otherwise stated, the contracts are issued by the Defense Supply Center Philadelphia (DSCP) in Philadelphia, PA. Specific purchases then take place via orders under the overarching contracts described below, up to the limits mentioned. The USA is divided into a number of regions, and these contracts also include locations abroad; DID has used the same geographical groupings in describing these contracts over the past couple of years, and the firms receiving them. The latest addition is over $1.8 billion in contracts for the CENTCOM region…

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Marine w. M16A4
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The US Army has run into controversy over its plan to replace its existing rifles with M4 carbines, without competition, and despite recent test results that show significant improvements from other 5.56mm weapons and even an M4 variant in use by US special forces. The US Marines and Navy have been known to use M4s, but it is not their primary battle rifle. The M16A3 is a fully automatic version of the M16A2, and is used by the US Navy. The M16A4 is the standard rifle of the US Marine Corps. Its biggest innovation is replacement of the M-16 family’s the well known carrying handle/sight with the MIL-STD-1913 Picatinny rail that lets troops mount and remove a carrying handle, sights, and other useful attachments without specialized tools. Other MIL-STD-1913 rails can be found on the front grips et. al. of the A3s and A4s, where they mount useful items like flashlights, laser pointers, grip pods, et. al.

Unlike the M4 Carbine, which is procured as a sole-source item proprietary to Colt, M-16 production is competed. Contracts are issued based on bid prices from qualifying vendors, with better pricing resulting in proportionately more contracts. This kind of competition may also be part of the reason that the longer, heavier replacement barrels for the M16 cost $100, while spare M4 carbine barrels cost $240.

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The Naval Facilities Engineering Command, Southwest, Specialty Center Contracts Core in Port Hueneme, CA issued a combined total of $39.95 million under a previously awarded firm-fixed-price multiple award contracts, exercising option year 3 for waterfront barrier maintenance and repair worldwide. Work to be performed provides for logistical support, installation, inspection, repair, maintenance and field supervision/operation of waterfront barriers, moorings, at marine facilities throughout the world. The current total contract amount after exercise of this option will be $158.5 million.

Work will be performed at various installations under NAVFAC Southwest’s area of responsibility worldwide, and is expected to be complete December 2008. Contract funds will expire at the end of the current fiscal year. Winners included small business qualifiers:

• Epsilon Systems Solutions, Inc. in Portsmouth, VA (N68711-05-D-0018)
• GPA Technologies, Inc. in Ventura, CA (N68711-05-D-0019)
• Harbor Offshore, Inc. in Ventura, CA (N68711-05-D-0017)

FORTUNE Magazine has released its annual list of America’s Most Admired Companies, and a number of defense-related firms find themselves noted in the data. To quote FORTUNE re: their methodology:

“The Most Admired list is the definitive report card on corporate reputations. Our survey partners at Hay Group started with the FORTUNE 1,000 – the 1,000 largest U.S. companies ranked by revenue – and the top foreign ones operating in the U.S. Hay sorted them by industry and selected the ten largest in each. To create the 63 industry lists, Hay asked executives, directors, and analysts to rate companies in their own industry on eight criteria, from investment value to social responsibility. Only the best are listed as most admired: A company’s score must rank in the top half of its industry survey. Ranks for the rest of the contenders are available online only.”

The criteria evidently managed to completely exclude key global defense & aerospace players with notable US businesses/revenues, including BAE Systems and EADS (which includes Airbus & Eurocopter). This is a major pair of omissions, to say the least. Methodology flaws aside, firms that made the cut in their sectors and do a lot of work in our industry – or were on the receiving end of cutting ratings – included:

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Oshkosh Striker
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Militaries often issue multiple-vendor contracts, in which multiple winners may compete for specific delivery orders under an already-negotiated set of contract terms. This saves money and also time, which can be a very precious commodity depending on the services being rendered. US base support and engineering contracts are often issued under these frameworks, and also tend to be awarded by region since the number of bases, the size of the country, and of course political interests make whole-country awards impractical.

Recently, the Defense Supply Center Philadelphia (DSCP) in Philadelphia, PA issued awards by region for 5-year, $800 million indefinite-quantity/ indefinite-delivery, multiple-vendor contracts. They cover “tailored logistics support” involving fire and emergency services on behalf of military installations, other federal agencies and departments, and other approved customers. In practice, all of the contracts below may involve the US Army, Navy, Air Force, Marine Corps, federal civilian agencies, or even state and local governments as end customers. All contracts involve a 2-year base contract, followed by three 1-year options.

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Mk-44 firing RAM
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The Rolling Airframe Missile (RAM) MK-31 guided missile weapon system is co-developed and co-produced under a NATO cooperative program between the United States and German governments to provide a small, all-weather, low-cost self-defense system against aircraft and cruise missiles. The RIM-116 was later called RAM (Rolling Airframe Missile), because it spins during flight. To save costs, Designation Systems notes that the RAM was designed to use several existing components, including the rocket motor of the MIM-72 Chaparral, the warhead of the AIM-9 Sidewinder and the IR seeker of the FIM-92 Stinger. Cueing is provided by the ship’s ESM suite or radar.

RAM is currently installed, or planned for installation, on 78 U.S. Navy and 30 German Navy ships, including American LSD, LHD, LPD and CVN ship types. This number will grow as vessels of the LPD-17 San Antonio Class and Littoral Combat Ships enter the fleet, and the LCS will sport an upgraded SeaRAM system that will include its own integrated radar and IR sensors. The Korean Navy has also adopted RAM for its KDX-II and KDX-III destroyers, and its LPX Dokdo Class amphibious assault ships; other navies using or buying RAM include Egypt, Greece, and the UAE/Dubai.

The latest additions to this DID FOCUS Article includes the fulfillment of Egypt’s request, via a missile contract to equip their new FACs….

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JS Kongou
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The JMSDF is working closely with the USA on missile defense activities. Air Force cooperation has also improved by leaps and bounds, allowing for much closer coordination with the USA in all aspects including missile tracking.

Japanese involvement includes modification and improvements to the SM-3 long-range anti-air/ABM missile. This weapon will form the outer layer of Japan’s ABM system, deployed from its current fleet of 4 Kongo Class AEGIS destroyers. The inner layer will consist of Japan Self Defense Forces PAC-3 Patriot missiles, and together they will form the initial ballistic missile defense for mainland Japan.

This article covers the elements of those request as they are fulfilled… and tested. The latest news following the JS Kongo’s successful BMD test is a partial contract that funds the modernization of one of its sister ships…

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E-2T
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While the USA prepares to field the next-generation E-2D Hawkeye as its next-generation naval AWACS, existing Hawkeye customers continue to rely on the E-2C. In some cases, this means aircraft purchase requests (q.v. Egypt, UAE), which will become even more attractive as the US Navy’s E-2C fleet becomes available for resale. In other cases (France, Japan, some Egyptian, 2/6 in Taiwan), it has meant upgrades to the Hawkeye 2000 standard. All fleets, however, will require ongoing sustaining support, i.e. technical expertise and spares. Northrop Grumman Systems Corp. in Bethpage, NY recently picked up a couple of awards along those lines from foreign customers, channeled through US NAVAIR (Naval Air Systems Command) in Patuxent River, MD:

Dec 28/07: An $8.6 million firm-fixed-price, cost-plus-fixed-fee delivery order against a previously awarded basic ordering agreement (N00421-05-G-0001) for calendar year 2008 and 2009 sustaining support for the Egypt Foreign Military Sales E-2C aircraft program. Work will be performed in Bethpage, N.Y., and is expected to be complete in December 2009.

Dec 28/07: A $5.9 million firm-fixed-price, cost-plus-fixed-fee delivery order against a previously awarded basic ordering agreement (N00421-05-G-0001) for sustaining support for the Taiwan Foreign Military Sales E-2C aircraft program (actually known as E-2T) through calendar year 2008.