VA Short $15B for Benefits, Health Care

Morning Coffee is a robust blend of links to news around the internet concerning the Naval Air Station Patuxent River economic community. The opinions expressed here do not reflect opinions of the Leader’s owners or staff.

The Department of Veterans Affairs expects to be nearly $15 billion short of what it needs to pay for benefits and health care this year and next, in part because more veterans are using VA services than expected, reports Military.com. An increase in benefits claims driven by the PACT Act could leave VA benefits accounts $2.9 billion short this year. Meanwhile, health care accounts could be nearly $12 billion short next year because of higher-than-expected staffing and prescription drug costs, among other factors, officials told Congress this week.

The Pentagon is again accepting deliveries of the newest F-35 Joint Strike Fighters from Lockheed Martin after a yearlong halt caused by problems with the fighters’ upgrades, reports Defense News. The first two F-35As loaded with a “truncated,” or partial, version of the Technology Refresh 3 upgrade software were delivered to the Air Force on Friday, the F-35 Joint Program Office said. One went to the Air National Guard’s 187th Fighter Wing at Dannelly Field, Alabama, the JPO said, and the other went to Nellis Air Force Base in Nevada.

Despite the recent resumption of deliveries, the Pentagon is still withholding payments to Lockheed over continued delays with the F-35’s upgrade, according to the Air Force’s top acquisition executive Andrew Hunter, reports Breaking Defense. “There are still withholds. Since not everything that we contracted for has been delivered, payment is also not complete,” Hunter said this week at the Royal International Air Tattoo air show. “We will not pay for that which we have not yet received.”

As president, Vice President Kamala Harris’ foreign policy would likely continue most of President Joe Biden’s objectives: strong support for Ukraine’s war effort, and continued initiatives to deepen alliances in Asia and the Pacific in the face of China’s geopolitical ascendance, says Politico. She would likely still see the US provide robust support to Israel and other allies in the Middle East, but Harris has sounded more sympathetic to the plight of Palestinians.

The Biden administration issued a veto threat on Monday against the House-passed Financial Services and General Government Appropriations Act, in part because of cuts to key tech priorities, reports Next Gov. The White House is looking for Congress to pass the $75 million request for the Technology Modernization Fund in the fiscal 2025 budget. The revolving fund, which supports IT modernization and cybersecurity efforts at federal agencies, got a $1 billion boost under the American Rescue Plan Act, which is nearly depleted.

Michigan, DoD, and the Department of Labor launched a $50 million manufacturing initiative to train workers for defense manufacturing, particularly welding and machining, as part of what Military.com described as a strategic investment in Michigan by the Biden-Harris administration to meet the Navy’s goal of increasing submarine production.

GEN Daniel Hokanson, the outgoing chief of the National Guard Bureau, said a proposal to transfer certain Air National Guard units into the Space Force could take away key resources from states and may lead to serious repercussions if passed, reports Military.com.

Three Massachusetts lawmakers are pressing DefSec Lloyd Austin to ground the V-22 Osprey aircraft again until the military can fix the root causes of multiple recent accidents, including a deadly crash in Japan, reports APNews. Democratic Sens. Elizabeth Warren and Ed Markey and Rep. Richard Neal called the decision to return Ospreys to limited flight status “misguided.”

Some states don’t charge income tax on military retired pay. In all states, US Department of Veterans Affairs disability payments are tax-free. Military.com provides lists and directions on where and what tax benefits are available to retired military. And also information for state taxes.

July 27 is Korean War Veterans Armistice Day, set aside to remind Americans of those who served and died in the conflict often called “The Forgotten War.” The Korean War was one of the first major conflicts of the Cold War, representing the global struggle between communist and capitalist ideologies, reports Military.com.

Trash carried by at least one North Korean balloon fell on the South Korean presidential compound on Wednesday, raising worries about the security of key South Korean facilities during North Korean provocations, reports Military.com. Some experts say South Korea should shoot down incoming North Korean balloons next time to protect major facilities because they might contain hazardous substances in the future.

The city of Moscow is offering new recruits 1.9 million rubles ($22,000) to fight in Ukraine, in the latest sign of a scramble to boost Russian troop numbers, reports CNN. Anyone taking up the offer would earn as much as 5.2 million rubles ($59,600) in their first year of service, the statement added. Those willing to join the fight in Ukraine can also receive one-time cash payments of about $5,690 to $11,390 for injuries, “depending on the severity,” and the family of a soldier killed in action could be paid $34,150. The financial sweetener comes as President Vladimir Putin struggles to recruit soldiers for his army as Russia’s full-scale invasion of Ukraine grinds on in its third year

Maryland’s 106 delegates to the Democratic National Convention met virtually on Monday and voted unanimously to support Vice President Kamala Harris for president. Maryland Matters provides a list of the state’s delegates, all of whom had previously been committed to Biden and still need to be formally released by the president before they can cast their votes for his successor. Those votes could be made in presidential roll call as soon as today, Thursday.

Israeli cybersecurity startup Wiz has ended talks with Google-parent Alphabet, reports Reuters. The deal had been reported as a $23 billion deal in which it would have become the US tech giant’s largest-ever acquisition. Wiz CEO Assaf Rappaport said the company would now focus on an initial public offering, as it had planned earlier, and aims to achieve an annual recurring revenue of $1 billion.

Days before the start on Friday of the 2024 Olympics, France’s interior minister said about 1,000 people suspected of possibly meddling for a foreign power have been blocked from attending, reports Military.com. About 1 million background checks scrutinized volunteers, workers, and others involved in the Games and others applying for passes to the most tightly controlled security zone. Attendance was refused to about 5,000 people, Interior Minister Gerald Darmanin said Tuesday. Out of them, “there are 1,000 people whom we suspect of foreign interference — we can say spying,” Darmanin said.

Contracts:

RDA Inc.,* Doylestown, Pennsylvania, is awarded a $13,944,897 cost-plus-fixed-fee order (N0001924F1856) against a basic ordering agreement (N0001924G0015). This order procures software and hardware upgrades to the low-cost acoustic processor engineering tool suite to include software and hardware product design, development, test, evaluation, installation, integration, off-site field testing for research and development, developmental test, and operational test, data analysis and documentation as well as platform prototype and development efforts in support of the Airborne Anti-Submarine Warfare program for the Navy. Work will be performed in Warrenton, Virginia (34.7%); Doylestown, Pennsylvania (34%); and Lexington Park, Maryland (31.3%), and is expected to be completed in July 2029. Fiscal 2024 research, development, test and evaluation (Navy) funds in the amount of $744,000; and other procurement (Navy) funds in the amount of $292,035, will be obligated at the time of award, none of which will expire at the end of the current fiscal year. Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

KBR Wyle Services LLC, Lexington Park, Maryland, is awarded a $153,606,550 cost-plus-fixed-fee, cost reimbursable, indefinite-delivery/indefinite-quantity contract. This contract provides for certified and qualified operational contractor support services aircrew to support mission essential testing and evaluation of all manned air vehicles under the operational responsibility of the Naval Test Wing Atlantic and Pacific squadrons. Work will be performed at the Patuxent River, Maryland (85%); Point Mugu, California (10%); and China Lake, California (5%), and is expected to be completed in September 2029. No funds are being obligated at time of award; funds will be obligated on individual task orders as they are issued. This contract was competitively procured via an electronic request for proposals; two offers were received. Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N0042124D0071).

Tekla Research Inc., Dumfries, Virginia, is awarded a $17,614,325 cost only value increase modification (P00018) to a previously awarded cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract (N0042118D0015). This modification increases the contract ceiling to provide continued systems engineering and technical services for air and ship integration, systems safety, mass properties, survivability, manufacturing and quality, air platform stores integration, metrology and systems security engineering supporting naval air integrated program teams, externally directed teams and enterprise teams to include multidiscipline, integrated technical baseline evaluation, engineering assessment to technical assessment of cost, schedule, emerging technology and maturity of design in support of the Navy acquisition programs. Work will be performed in Patuxent River, Maryland (68%); Cherry Point, North Carolina (13%); Tucson, Arizona (6%); Arlington, Virginia (5%); Ridgecrest, California (3%); San Diego, California (2%); Lakehurst, New Jersey (1%); Jacksonville, Florida (1%); and Thailand (1%) and is expected to be completed April 2025. No funds will be obligated at the time of award, funds will be obligated on individual orders as they are issued. Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity.

Tyonek Services Overhaul Facility – Stennis LLC, Kiln, Mississippi, is awarded a $10,344,586 cost-plus-fixed-fee, cost reimbursable modification (P00005) against a cost-plus-fixed-fee contract (N6852022C0010). This modification exercises an option to provide continued maintenance support services for aircraft, aircraft engines and associated components/materials, including diagnostic testing performed with automated equipment, calibration, repair or replacement of damaged or unserviceable parts, components, or assemblies, limited manufacture of parts, and on aircraft/equipment technical assistance to operational level activities for the Fleet Readiness Center Mid-Atlantic detachment Patuxent River, Maryland. Work will be performed in Patuxent River, Maryland, and is expected to be completed in July 2025. Fiscal 2024 working capital (Navy) funds in the amount of $1,725,923 will be obligated at the time of award, none of which will expire at the end of the current fiscal year. Commander Fleet Readiness Center (COMFRC), Patuxent River, Maryland, is the contracting activity.

Valiant Government Services, Fayetteville, North Carolina, was awarded a $21,913,881 firm-fixed-price contract for operation and maintenance with incidental repair and minor construction. Bids were solicited via the internet with four received. Work will be performed at Fort Detrick, Maryland, with an estimated completion date of Jan. 18, 2028. Fiscal 2024 Defense Health Program, funds in the amount of $21,913,881 were obligated at the time of the award. US Army Corps of Engineers, Mobile, Alabama, is the contracting activity (W91278-24-C-0038).

Translang LTD, Great Falls, Virginia, was awarded a $10,732,170 firm-fixed-price contract for training and support services. Bids were solicited via the internet with one received. Work will be performed in Abu Dhabi, United Arab Emirates, with an estimated completion date of Jan. 31, 2026. Fiscal 2023 military personnel, Army funds in the amount of $10,732,170 were obligated at the time of the award. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-23-C-0007).

Siemens Government Technologies, Arlington, Virginia, was awarded a not-to-exceed $107,449,518 firm-fixed-price modification to a previously awarded third party financed contract (N39430-19-F-9909). This modification provides for an increase to the energy service performance contract for Naval Station Guantanamo Bay. Work will be performed in Guantanamo Bay, Cuba. This award brings the total cumulative face value of the contract to $936,277,538. Work is expected to be completed in April 2043. No funds were obligated at time of award. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity. (Awarded July 18, 2024)

Distribution Computing System Solutions Provider Inc., Herndon, Virginia, is awarded a $99,643,077 firm-fixed-price, cost reimbursable, indefinite-delivery/indefinite-quantity contract to provide cost and business analysis support for programs assigned to Marine Corps Systems Command and affiliated Program Executive Officers. Work will be performed in Quantico, Virginia, and is expected to be completed in July 2029. No funds will be obligated at time of award. Funds will be obligated on individual task orders as they are issued. This contract was not competitively procured pursuant to Federal Acquisition Regulation 6.302-5(b)(4). The Marine Corps System Command, Quantico, Virginia, is the contracting activity (M67854-24-D-2012).

Programs Management Analytics and Technologies Inc., Norfolk, Virginia, is awarded a $96,308,885 cost-plus-fixed-fee contract. This contract is for technical and program management services for the design, development, procurement, production, integration, installation, test, training, certification and accreditation and information assurance in support of the Small Business Innovation Research Phase III Topic N201-022 entitled “Big Data Mining for Maritime Situational Awareness (MSA).” This requirement extends, completes, and transitions the Maritime Situational Awareness – Deep Learning Aggregated Reference Knowledgebase capabilities and provides further research and development of innovative techniques to mine and exploit big data sources to improve MSA for the Air Maritime Patrol and Reconnaissance Aircraft. Work will be performed in Norfolk, Virginia (95%); Patuxent River, Maryland (2%); Quantico, Virginia (1.5%); and Crane, Indiana (1.5%), and is expected to be completed in July 2029. Fiscal 2024 research, development, test, and evaluation (Navy) funds in the amount of $3,100,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to Federal Acquisition Regulation 6.302-5(a)(2)(i). Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N6833524C0001).

Leidos Inc., Reston, Virginia, was awarded a $16,521,514 firm-fixed-price contract for the transformational command capabilities engineering and technical support for the Japanese Ministry of Defense, more commonly referred to as the Central Command System. This contract provides system engineering, integration, hardware, software, operation, maintenance, other technical and/or analytical and logistical support to facilitate the continued evolution and operation of the Japanese version of the Global CCS to support the US-Japan coordination activities for crisis planning, bilateral operations, and exercises. Work will be performed at Yokota Air Force Base and Ichigaya Base, Tokyo, Japan; and Reston, Virginia, and is expected to be completed by June 30, 2029. This contract was a directed sole-source. Foreign Military Sales funds in the amount of $3,890,539 are being obligated at time of award. Aerial Networks Division, International Programs Branch, Hanscom Air Force Base, Massachusetts, is the contract activity (FA2291-24-C-B001).