US Military Wants Long-Term Infrastructure

Water tower etc.,
Times Beach

Most people never see services like wastewater management and water distribution, maintenance of the electric grid, etc. The cost is built into their taxes and utility bills, or into initial subdivision fees. Military bases have to deal with these sorts of issues, just as homeowners and developer do – but on a much larger scale. The preference in the US military seems to be shifting toward very long term (about 50 year) term fixed-price or regulated tariff contracts, often coupled with partial privatization or conveyance of assets, in order to make the contractor 100% responsible for the utility.

This Spotlight article covers billions of dollars in contracts that fall under this format, from 2007 to the present.

US Military: The DLA’s Prime Vendor MRO Contracts, FY 2006-2011

Latest updates[?]: Explanation for drop in contract amounts; $105M more in SE region.

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, now referred to as Defense Logistics Agency Troop Support) 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, and the firms receiving them. Coverage will end at the end of FY 2011.

At present, awards seem to be dropping to 1/10 of previous levels. This is not a typo. The DLA says that it’s a series of bridge contracts, issued while they prepare solicitations for the next contract sets. Those solicitations are due out in about a month.

Dutch Sign 10-Year Ammo Agreement with Rheinmetall

PzH 2000NL firing,
Afghanistan

In December 2010, the Dutch Ministerie van Defensie signed a 10-year, EUR 200 million (about $270 million) framework agreement with Rheinmetall Defence that lets the Netherlands order a wide range of different ammunition and pyrotechnic types, from bullets and propellant charges to grenades. The first order was actually placed at the end of 2010, and involved modular propellant charges for the army’s PzH 2000NL self-propelled 155mm howitzers.

This contract replaces several existing agreements. The Dutch Army already relies on Rheinmetall for nearly all its ammunition needs, including practice and service ammunition in multiple calibers. Assured access to supllies at short notice is therefore part of the agreement. So, too, is external storage and management. The end result moves toward more of a “just in time” ammunition supply model. As a bonus, the Dutch MvD no longer has to pay value-added tax on purchases within this contract.

Dutch and German cooperation between their defense procurement groups forms a related facet of this partnership. The Dutch DMO and German BWB will undertake joint development, testing, purchasing and storage for 6 ammunition types: 44 mm and 76 mm grenades, 120 mm tank shells, 155 mm PzH-2000 howitzer ammunition, and Panzerfaust rockets. They will also share test data, and make use of each other’s testing facilities and equipment. As an initial example, a Dutch PzH-2000NL that is already in South Africa for long range and precision ammunition tests, which cannot be performed at any range in Europe, will be used by the Germans for their own tests. All results from both countries’ tests will then be shared. MvD [in Dutch | English] | Rheinmetall Defence.

AgustaWestland’s Through-Life Support for UK Merlin Helis

RAF Merlin HC3

Thales’ 2011-2016 IMOS sub-contract. (April 11/11)

The United Kingdom has sustained extensive efforts to strike long-term, through-life support contracts for various weapons systems under a “contracting for availability” (rather than for maintenance hours) framework. The UK Ministry of Defence (MoD) keeps driving the point home with new contracts that encompass more and more of their military.

The Royal Air Force currently flies 28 AW101 Merlin HC3 medium helicopters that work with the army, whilst the Royal Navy’s 42 soon-to-be upgraded AW101 Merlin Mk1s are used for both Anti-Submarine warfare and Anti-Surface warfare. This single 25-year contract covers both helicopter types…

• The AW101 Merlin’s IMOS Contract [updated]
  
• Contracts & Key Events [updated]
  
• Additional Readings [NEW]
  

RFID Technology: Keeping Track of DoD’s Stuff

Those Were the Days
(click to view larger)

The US military has a vast store of supplies and equipment around the world. Keeping track of all that stuff has always been a challenge. In World War II, the US Army kept track using IBM punch cards and electric accounting machines (EAMs).

Well today, radio frequency identification (RFID) tags have replaced punch cards and RFID readers and computers have replaced the EAMs. The RFID tags work like “wireless bar codes” that record, track, and manage the supplies and equipment of a modern networked military.

Military operations in Iraq and Afghanistan have focused attention on the performance of the US Department of Defense’s (DoD) supply chain management in support of deployed US troops. The availability of spare parts and other critical supply items affects the readiness and operational capabilities of the forces, and the supply chain can be a critical link in determining outcomes on the battlefield.

So, not only does RFID technology help keep track of supplies and equipment, it also helps get critical supplies to the battlefield at the right time and place and to secure supplies en route…

• Key Technologies
  
• Applications
  
• Benefits
  
• Problems
  
• RF-ITV System
  
• Other Uses
  
• Contracts and Key Events [updated]
  
• Additional Readings
  

The US Army’s Mobile Parts Hospitals

MPH in Balad, Iraq

TV taught us what a “Mobile Army Surgical Hospital” was, but a “Mobile Parts Hospital”? Like a MASH unit that can go wherever it is needed, the MPH is designed as a front line resource for patching things up – but it is for machines, not men. Since their initial deployment in 2003, the MPHs have fabricated more than 100,000 replacement parts, replacement components, and special tools.

As Maj. Andris Ikstrums, 1st Battalion, 402nd Army Field Support Brigade support operations officer, puts it:

The USA’s 2005-2009 Multi-Year Hornet Procurement Contract

F/A-18F Super Hornet

The US Navy flies the F/A-18 E/F Super Hornet, and has just taken delivery of its first operational EA-18G Growler electronic warfare & strike aircraft. These buys are actually managed out of a common multi-year procurement (MYP) contract, which also manages many of the EA-18G’s support costs since it’s derived from the Super Hornet and many of the required maintenance items are common to both planes. The contract covers 42 aircraft per year, split between Super Hornets and EA-18Gs, with a variation quantity clause permitting up to 6 additional aircraft per year under the same terms.

DID already has an EA-18G FOCUS Article; we will be using this entry to cover the Super Hornet MYP program’s budgets, and this article has been updated to include all announced contracts since MYP-II began. The article is now closed, and returns to public access. For a follow up, see MYP-III: 2010-2013 Contracts.

Rapid Fire 2010-02-16: Naval Data Usage

• Information Dissemination on 2008 at-sea usage data and implications for various US Navy ship types.

• India to issue a new defense procurement policy, hopes to reduce delays in purchasing weapons, and to increase domestic production.

• India’s Mahindra Group is lobbying the government to lift foreign ownership cap for defense firms to 49%. The firm is involved in a joint venture with BAE systems, among others.

Delivering Your Plane, By Truck

Truckin’

As part of Taiwan’s much-reported military modernization program, it’s ordering 12 P-3C Orion sea control aircraft to monitor its sea lanes, hunt enemy submarines, and make life dangerous for any ships in an invasion force. While Lockheed Martin was forced to re-open a wing line in Georgia, the main production line isn’t active any more. As a result, all 12 of the mothballed P-3s slated for Taiwan have to come from stored US Navy aircraft at AMARG’s “boneyard” near Davis-Monthan AFB, Tucson, AZ. The problem is that all 12 airframes were labeled “non-flyable” due to structural fatigue, which made the 2,000 mile trip to the refurbishment facility in Greenville, SC, a bit of a challenge.

After considering and rejecting rail transport due to offloading and re-loading risks, the AMARG team decided to use a flatbed truck. That’s an unusual method, but it worked. Their approach has stirred interest from other P-3 operators, and even US federal government agencies…

Lex Products to Supply USMC Mobile Power Distribution System

MEPDIS-R Diagram
(click to view larger)

Lex Products Corp. in Stamford, CT received an $8 million task order under a blanket purchase agreement (M67854-07-A-5016) to provide the mobile electric power distribution system – replacement [pdf] (MEPDIS-R) to the US Marine Corps.

The system distributes electrical power from all standard tactical generators to military shelters and systems requiring power.

MEPDIS-R is a modular power distribution system consisting of portable power distribution boxes and interconnecting power cables. The system includes a series of cable adapters permitting the use of older power generation systems…