• The USAF is restructuring its Air Force Materiel Command (AFMC) from 12 centers to 5 is one of the major steps within broader changes in its civilian workforce which should amount to adding “5,900 positions in acquisition, the nuclear enterprise, and intelligence, surveillance and reconnaissance and other key areas while reducing approximately 9,000 positions in management, staff, and support areas.”

• The Russian Defense Ministry and United Shipbuilding Corporation (USC) have sorted out their pricing disagreements on Yasen and Borey class nuclear-powered submarines. That’s their good news. Gaddafi’s fall on the other hand means billions of dollars of lost potential arms exports.

• In talks with the German government, EADS is reportedly ready to waive penalties triggered by reduced Eurofighter orders in exchange for Talarion UAV orders. Germany has been leasing IAI Herons for the last 2 years. [Nov. 7 update: Germany says no.]
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Atlantic CommTech Corp. in Virginia Beach, VA received a $12 million firm-fixed-price contract. They’ll provide interior intrusion detection systems for protective aircraft shelters, and redundant cable, for the 498th Nuclear Systems Wing. Atlantic CommTech will be performing 100% of the work throughout 6 NATO installations in Europe. This is not surprising. Back in February 2008, “The Blue Ribbon Review of Nuclear Weapons Policies and Procedures” raised concerns about security practices at nuclear-capable facilities in Europe, and recommended a number of steps to improve the situation. Meanwhile, European countries’ waning desire to even host such weapons has become a subject of high-level debate among NATO members.

The 498th Nuclear Systems Wing is part of USAF Materiel Command, and handles nuclear maintenance projects, programs, & systems integration, advocacy, and oversight. The wing’s groups and divisions include the 498th Missile Sustainment Division based at Tinker AFB, OK, the 498th Nuclear Systems Division at Kirtland AFB, NM; the 498th Munitions Maintenance Group at Whiteman AFB, MO, and the 798th Munitions Maintenance Group at Minot AFB, ND. The USAF Nuclear Weapons Center/PKE at Kirtland AFB, NM, manages the contract (FA9422-12-F-0001).

Water tower etc.,
Times Beach

Over $800M in contracts. (Sept 30/11)

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…

Explanation for drop in contract amounts; $105M more in SE region. (Sept 26/11)

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.

• USA: Northeast Region
• USA: North Central Region
• USA: Northwest Region
• USA: Southeast Region [updated]
• USA: South Central Region
• USA: Southwest Region
• CENTCOM Region
• Pacific Region
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• South Korea’s 2012 defense budget: +5.6% or roughly in line with total budget growth, pending parliamentary approval.

• British Secretary of State for Defence Dr Liam Fox says a 1% increase (in real terms) to the Defence Equipment and Support budget between 2015/16 and 2020/21 should give the ministry a “firm footing” to tackle long-term challenges.

• BRAC complete at Joint Base San Antonio (JBSA) in Texas – the largest installation in the US military.

• Can a US Army Program Manager get his USMC pals to benefit from his program even if it’s not a designated joint one? The answer is yes, through a Memorandum of Agreement (MOA) between the 2 services.

• DFARS Case 2011-D013 on what to do when acquisitions using competitive procedures receive only one offer is received has been reopened for comments until October 7. The Project On Government Oversight (POGO) objects to the unlimited waiver currently in the planned regulatory change, as well as to the exception provision for contingency operations, given the track record in Iraq and Afghanistan.

• US DoD Performance Based Logistics (PBL) 2011 award winners were announced recently:
• System Level “Gerald Beck” Award: Joint STARS Total System Support Responsibility Team/Northrop Grumman – USAF C2ISR Aerospace Sustainment Directorate/Warner Robins Air Logistics Center (WRALC)
• Sub-system Level Award: AH-64D Apache Sensors/Lockheed Martin – USA PEO Aviation/Apache Project Management Office
• Component Level Award: Tire Performance-Based Logistics Team/Michelin Aircraft Tire Company – USN Naval Supply Command Weapon Systems Support (NAVSUP WSS)

• Forthcoming hearings at US House Armed Services Committee: National Defense and the U.S. Military Ten Years After 9/11: Perspectives from Former Service Chiefs and Vice Chiefs (Oct. 4), Is the Financial Management Workforce Positioned to Achieve DOD’s Financial Improvement Goals? (Oct. 6). The latter should be fun for people who like to watch glaciers move, but it may beat the non-news that so far have emerged from the Super Committee.

• The Stimson Center notes contrasting visions of the future of the US Navy: stick to a strategy of forward presence and projection, or scale back to a position of “security guarantor of last resort.” The two approaches definitely come with a different price tag. Admiral Roughead argued in favor of the more asserting strategy in a roundtable at the Aspen Institute earlier this month (video below):
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E-2C Hawkeye

On Dec 4/07, the US DSCA announced the United Arab Emirates’ official request for 3 used, refurbished E-2C Hawkeye Airborne Early Warning (AEW) aircraft with radar and antennae. When combined with the UAE’s $9 billion request for Patriot missiles, and other recent initiatives, it would appear that the UAE is taking strong steps to beef up its defensive and surveillance capabilities.

Making that happen requires more than just planes. It requires extensive back-end systems that help turn information from platforms like the Hawkeye into a coherent whole, and allow command staff to direct battles based on that information. DID explains what happened to that Hawkeye sale, how it fits into a larger picture, and where things stand now, as the UAE continues its strong Command, Control, Computing, & Communications (C4) push:

• The UAE’s Quest for Hawkeyes
• Contracts & Key Events, 2002 – Present [updated]
• Additional Sources [updated]
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AEDC at work: X-29

Another $208.5M. (Sept 8/11)

The Arnold Engineering Development Center (AEDC), named for U.S. Air Force pioneer Gen. Henry “Hap” Arnold, bills itself as “The World’s Premier Flight Simulation Test Facility.” Nearly half of the AEDC’s 58 test facilities are unique in the U.S., and 14 are unique in the world. These specialized test facilities have played a crucial role in the development and sustainment of virtually every high performance aircraft, air-to-air and air-to-ground weapon, missile, and space system in use by all four of the U.S. military services today. The Center has also been involved in the development of every NASA manned space system, many satellites, and numerous commercial aircraft and spacecraft systems.

In 2003, the Air Force consolidated the test operations contract and the base services contract into a single contract for operations, maintenance, information management, and base support, which was awarded to Aerospace Testing Alliance (ATA) in Tullahoma, TN…

• AEDC Services
• AEDC Contracts [updated]
• Additional Readings
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Federal Business Opportunities (FBO) has recently disclosed the following Requests for Proposals (RFP), modifications and notifications:

• The US Air Force releases a Statement of Work, Questions and Answers and additional documents in relation to the purchase and installation of a Lawful Intercept (LI) capability for the Government of Iraq (GOI). LI will provide the GOI with enhanced communications intelligence to support a range of security operations.
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Fluor builds LOGCAP housing
in southern Afghanistan

$313 million to KBR for LOGCAP work in Iraq; 2009 contracts backfilled. (Aug 3/11)

The US Army’s sole provider LOGCAP 3 contract, which provided food, housing and fuel for U.S. troops worldwide, generated lots of controversy because government audits of the sole supplier’s (Halliburton-KBR) work were unable to fully account for millions of dollars or justify all charges to the Pentagon’s satisfaction.

To address perceived problems of LOGCAP 3, the Army awarded the follow-on contract, LOGCAP 4, to 3 companies – KBR, DynCorp and Fluor – who compete for task orders.

The LOGCAP 4 contracts are indefinite-quantity/ indefinite-delivery contracts with 1 base year and 9 option years. Each contract has a maximum value of $5 billion per year. This allows the Army to award a total annual maximum value of $15 billion and a lifetime maximum value of $150 billion…

3 contracts for over $140M. (July 29/11)

Located in the middle of the Indian Ocean, the British Indian Ocean territory of Diego Garcia is a key strategic base that acts as a staging area for navy ships, long-range bombers, aerial tankers, and other military assets whose missions take them to Africa, Asia, and the Middle east. Secondary missions include its status as one of the Space Shuttle’s emergency landing sites, and hosting one of Global Positioning System’s 3 ground antennas, as well as facilities belonging to the USA’s Space Surveillance Network.

The UK/ U.S. treaty that turned the island into a military base was signed in 1966. It runs until 2036, but either government can opt out in 2016. Meanwhile, there’s the non-trivial matter of supplying, improving, and operating the island’s military infrastructure. This article offers a look into those contracts, over a slice of time from FY 2007-2011…