Rapid Fire April 25, 2012: Expediting Joint Urgent Operational Needs
- The GAO(Government Accountability Office) studied how the fast capability procured via joint urgent operational needs ended up being fielded. Such fulfillment amounted to at least $76.9B for FY 2005-10 according to DoD. Some programs such as the the MRAP Recovery Vehicle tow truck were fielded within 6 months of validation, while several other initiatives were delayed beyond the targeted 2 years because of requirement or contracting issues. You would expect off-the-shelf solutions to, well, fly off the shelves, but while they do get fielded faster overall, delays early in the process reduced the difference with custom efforts. See chart at the bottom of this entry.
- Northrop Grumman’s sales decreased by 8% to $6.2B in Q1 2012 vs. a year ago, a slight acceleration of the rate of sales decrease seen through 2011. Electronic Systems is the division that lost the least (-5%) and Technical Services the most (-10%). Among the factors explaining the decline in sales: low F/A-18 and F-35 deliveries from Boeing and Lockheed Martin respectively. The total backlog shrunk by $400M to $39.1B ($25B or 64% of which is funded) while new business awards amounted to $5.8B.
- Defense contractors in Canada have gripes about “vaporware” DND competitions that cost them millions to bid for yet never materialize.
“The effort comes after the service chiefs declined to send unfounded priority lists to Congress this year, marking the first time since 1995 that this additional information was not provided.”