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WWE-5: up to $853.3M for Small Package Delivery

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Under the World Wide Express-5 program, the United States Transportation Command (US TRANSCOM) Directorate of Acquisition at Scott Air Force Base, IL has issued 3 multiple-award, indefinite-delivery/indefinite-quantity, fixed-price contracts worth a total maximum of $853.3 million. This will cover international express delivery of packages and letters weighing 300 pounds or less. This is not the same thing as the Defense Logistics Agency’s Small Surface Package Program, or the billions of dollars in annual international airlift contracts issued by the Pentagon over the last few years – but some of the companies do overlap.

The initial contract award value to each winner is $2,500, and winners will compete for delivery orders over the contract. This arrangement is a one-year base contract for FY 2012, with 4 more 1-year options that could take the contract to Sept 30/16. Unlike the $400 million FY 2008-2011 contract, which had 9 offers and 9 eligible firms, World Wide Express-5 had just 5 bidding firms, and only 3 awards were announced, to:

  • Federal Express, Washington, D.C. (HTC711-12-D-C001)
  • United Parcel Service in Louisville, KY (HTC711-12-D-C003)
  • Polar Air Cargo in Purchase, NY (HTC711-12-D-C002). They’re a subsidiary of Atlas Air Worldwide, and partnered with DHL. Atlas was not included in the 2007 contract, but Atlas and Polar have received some international airlift contracts in the past. They recently entered the military passenger charter market with their 1st 747-400 charter flight, in May 2011.

LOGCAP 4: Billions of Dollars Awarded for Army Logistics Support

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Fluor in Afghanistan
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…

JPADS: Making Precision Air-Drops A Reality

LOGI JPADS Screamer Over Afghanistan
Strong’s JPADS,
Afghanistan
DII

Ultralight JPADS contract awarded. (March 17/11)

The dilemma for airdropping supplies has always been a stark one. High-altitude airdrops often go badly astray and become useless or even counter-productive. Low-level paradrops face significant dangers from enemy fire, and reduce delivery range. Can this dilemma be broken?

A new advanced concept technology demonstration shows promise, and is being pursued by U.S. Joint Forces Command (USJFCOM), the U.S. Army Soldier Systems Center at Natick, the U.S. Air Force Air Mobility Command (USAF AMC), the U.S. Army Project Manager Force Sustainment and Support, and industry. The idea? Use the same GPS-guidance that enables precision strikes from JDAM bombs, coupled with software that acts as a flight control system for parachutes. JPADS (the Joint Precision Air-Drop System) has been combat-tested successfully in Iraq and Afghanistan, after moving beyond the test stage in the USA… and elsewhere.

L-3’s SpecialOps Support Contracts

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US SOCOM special operations command

3 firms added to 5-year SITEC multiple-award contract. (July 14/11)

US Special Operations Command (US SOCOM) has been extremely busy since Sept 11/01. That is creating corresponding demands on their support infrastructure, much of which is contracted. SOCOM is famous for having a practical, results-oriented, “get it done now” approach to contracting, which creates more freedom for contractors but also means a certain degree of added pressure. Much like the lives of SOCOM’s operators.

The L-3 Communications conglomerate does a lot of work with US SOCOM, and this article covers a few of those key contracts. Their Joint Operations Group’s profile describes the nature of their work with SOCOM – and it is extensive:

US Issues RDC-5 Domestic Shipping Contracts

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U.S. Transportation Command at Scott Air Force Base, IL provides more than just airlift services. For heavier items, sealift is more economical, and can even be faster given required sortie rates for very large shipments. Hence the USA’s Regional Domestic Contract (RDC-5) program, where shipping companies provide services between the continental USA and Alaska, Hawaii, Guam and Puerto Rico; and from Alaska to Guam.

This article covers contracts from 2010-2011…

Serco to Support Australian Forces in Middle East

USAF Civilian Interpreter in Afghanistan
ADF in Iraq

Global services giant Serco Group plc recently announced a new 4-year contract with the Australian Defence Force (ADF) to provide logistics and base support services in the Middle East. The contract is structured as 2 base years for “over” A$50 million (over $54 million), plus 2 more 1-year options. The British multinational already provides these kinds of services to Britain, Canada, Germany, and the USA, and has provided support services to all 3 of the ADF’s military branches for over 15 years.

Under this contract, Serco will deliver “fully integrated support for ADF bases… in areas such as maintenance and ground refuelling, together with healthcare, accommodation and other support functions. The services will be implemented in a staged approach, with all services fully operational by the end of September 2011.” Ongoing ADF operations in the Middle East include Afghanistan, Egypt, Iraq, Israel, and Sudan. Serco | Arabian Business.

Rapid Fire 2011-05-18: UCAV Attack Jets?

  • The US Army may have to spend at least $441 million to replenish prepositioned equipment to meet combatant command planning requirements, part of the $4.5 billion needed to fully reconstitute the Army’s prepositioned stocks, the GAO says.
  • Russian President Dmitry Medvedev fires weapons plant officials and defense ministry officials over delays in deliveries of new weapon systems, after musing about the good old days when they would have enjoyed “hard physical labor in the fresh air.” Getting Russia’s defense industry back on its feet won’t be easy – but the money is there. It will happen. Eventually.
  • White House unveils [PDF] an international cyberspace strategy that includes a call for tightening global defenses against cyber attack and using “all necessary means” to defend networks. Until the US can go on offense, it doesn’t matter much since there’s no cost to attacks.
  • San Diego-based defense contractor Jesse Denome pleads guilty to bribing US Navy official to obtain $300,000 worth of military aircraft equipment orders.
  • Up to $101 million to URS for maintenance of USMC vehicles and equipment in Southeast US.

Rapid Fire 2011-05-11: Helo Brownout Mitigation

  • Russian President Dmitry Medvedev chastizes military for delaying tenders on major weapon systems.
  • General Dynamics snags contract worth up to $125 million to provide IT network services to the US Special Operations Command.
  • AAR gets $23 million contract to supply flat racks to the US Army for transportation of materials and containers via trucks and other ground equipment.

The USAF’s Air Logistics Center IPV Contracts

Lockheed Martin military manufacturing

The U.S. Air Force’s 2006 Industrial Product-Support Vendor (IPV) contract manages all supply chain items for production depot maintenance activities at the 3 USAF Air Logistics Centers in Ogden, UT (OO-ALC); Oklahoma City, OK (OC-ALC – opportunities available); and Warner Robins, GA (WR-ALC). The contract extends well beyond Lockheed Martin’s own aircraft and missiles; together, the ALCs provide worldwide engineering, maintenance and logistics management for all USAF fighters, transports, missiles and munitions.

April 22/11: The Pentagon announces that Lockheed Martin Aeronautics Co. in Johnston, PA is receiving a maximum $500 million contract modification, exercising the 2nd option year on the current fixed-price with economic price adjustment, industrial product-support vendor contract, running until April 19/13 (SPM540-06-D-BP01, P00184).

Oddly, Lockheed Martin’s own April 13/11 release gives an estimated value of just $176 million. Asked about the contract, Lockheed Martin representatives said: “For details on how the DoD arrived at the $500 million amount, I would need to refer you back to the DoD for the terms of this particular calculation.”

Rapid Fire 2011-04-25: Energy Storage Systems

  • DARPA is looking for industry help in developing “flexible/robust energy storage systems” that can use renewable energy sources for forward operating bases.
  • Up to $163 million [PDF] to General Dynamics for demilitarization of 8 munitions families including high explosive bombs, improved conventional munitions, fuzes, Explosive D bombs and ammunition ranging for 25mm to 106mm calibers at the US Army Contracting Command in Rock Island, IL.
  • Calibre gets contract worth up to $45 million contract to provide IT and program management support services to the Army National Guard’s Logistics and the Aviation and Safety Divisions.