February 7, 2023

Contractors Get Half of DoD Budget

$1.3T Budget

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More than half of the Pentagon’s yearly budget goes to private contractors, reports Forbes. In 2021, Lockheed Martin, Boeing, Raytheon, General Dynamics, and Northrop Grumman received over $116 billion in Pentagon contracts while paying their top two dozen executives a total of $287 million. The CEOs of the top five contractors received compensation ranging from $18 million to $23 million each.

Scientists at Lawrence Livermore National Laboratory in California have made a breakthrough on fusion, the process that powers the sun and stars that one day could provide a cheap source of electricity, reports Reuters. According to a source, the scientists achieved a net energy gain for the first time, in a fusion experiment using lasers.

The US charges seven with smuggling millions of dollars of US military, dual-use tech to Russia, reports UPI. Alexey Brayman, a 35-year-old Israeli with permanent residency in New Hampshire and US citizen Vadim Yermolenko, 41, as well as five Russians have been indicted. The 16-count indictment charges the group is part of a procurement network, operated under the direction of Russian intelligence to acquire advanced semiconductors, quantum computing testing equipment, and hypersonic and nuclear weapons technology.

The Defense Intelligence Agency has awarded a secret contract to a secret contractor to modernize its secretive IT network, reports C4ISRNET. The DIA said it awarded the “significant,” eight-year contract on November 17  but would not disclose the winning company, its subcontractors, or the value of the deal.

Reuters reports that the UN Conference on Trade and Development expects the ongoing slowdown in global trade will worsen in 2023.

The DoD is working to shore up efforts to track weapons provided to Ukraine, report NBC News, including discussing whether to send a small number of additional US troops to Ukraine. The discussion comes as the first anniversary of the Russian invasion of Ukraine approaches and the Biden administration faces the incoming Republican House majority, which  has signaled it will be more skeptical of a “blank check” for Ukraine.

The US is poised to approve the Patriot missile battery for Ukraine, reports Military Times, after finally agreeing to an urgent request from Ukrainian leaders desperate for more robust weapons to shoot down incoming Russian missiles. Officials said the Patriot will come from Pentagon stocks and be moved from another country overseas.

USNI News Fleet and Marine Tracker: December 12, 2022

 

 

Russian gas chemical projects, led by energy giant Gazprom (GAZP.MM) and privately held Sibur, are facing delays over decreased foreign involvement, a December report by the central bank showed, reports Reuters.

Vladimir Putin will not hold a year-end press conference for the first time in at least a decade, in what Kremlin-watchers view as a break with protocol due to his war in Ukraine, reports The Guardian.

Indian troops prevented Chinese soldiers from entering Indian territory on December 9 during a border scuffle that led to injuries on both sides, India’s defense minister said Tuesday, in the first such clash since 2020 between the Asian giants, reports Reuters.

United Airlines is ordering 100 Boeing 787 Dreamliners and 100 737 MAXs as it pushes for post-pandemic growth and replaces older, less-efficient aircraft, reports Reuters. The order is worth about $43 billion at list prices, reports Reuters.

A team of sailors aboard USS Portland (LPD-27) recovered an Orion space capsule after it splashed down in the Pacific Ocean on Sunday after a 25-day trip around the moon, reports USNI. Orion is an unmanned capsule that was launched into space on November 16 as part of the Artemis I lunar orbit mission. During its time in space, Orion traveled 1.3 million miles, according to NASA.

Hospital ship Comfort temporarily suspends medical services in Haiti, reports Navy Times, after 19 people with the mission fell overboard amid a heavy swell hitting the Caribbean region Monday night. A dozen military personnel and seven civilians with the USNS Comfort were returning to the ship after caring for patients on land. All were pulled back onto the small boat, which was then lifted by a crane onto the ship. The usual process is for personnel to use a water taxi and step onto a ladder to board the ship, but that the heavy surf made that impossible. Two people were injured but are expected to recover.

Former Marine pilot Daniel Edmund Duggan faces US charges for training Chinese military pilots, reports Marine Corps Times. The 2017 indictment unsealed Friday, alleges Duggan gave Chinese nationals training in military aviation in exchange for payments from “a business firm based in the PRC (People’s Republic of China) that acquired military training, equipment, and technical data for the PRC government and military.”

The US Air Force successfully conducted the first test launch of a fully operational prototype of its hypersonic Air-launched Rapid Response Weapon, made by Lockheed Martin, reports Defense News.

Army one-star general BRIG GEN Christopher Reid was fired in September from Cyber Command, reports Army Times, after CYBERCOM’s leader, GEN Paul Nakasone, “lost confidence” in his “ability to continue to perform his duties.” Reid, who had overseen the capabilities and resource integration directorate at Cyber Command was reassigned.

A rupture in the Keystone pipeline has led to a 588,000-gallon (14,000-barrel) spill in a Kansas creek, reports Smithsonian Magazine. It’s the largest spill from an onshore crude pipeline in nine years and by far the biggest in the Keystone system’s history. TC Energy says the oil spill has been “contained” with the help of 250 people, and “there is no indication of adverse health or public concerns,” per a statement.

Contracts:

The Concourse Group LLC, Annapolis, Maryland, is awarded a $35,000,000 firm-fixed-price, level-of-effort, indefinite-delivery/indefinite-quantity contract for the Department of Navy’s public-private venture and real estate programs. Work will be performed in Hawaii, Guam, and other overseas areas and is expected to be completed by December 2027. Fiscal 2023 operation and maintenance (Navy) funds in the amount of $10,000 will be obligated at the time of award and will expire at the end of the current fiscal year. This contract was competitively procured via the System for Award Management website, with three offers received. The Naval Facilities Engineering Systems Command Atlantic, Norfolk, Virginia, is the contracting activity (N62470-23-D-0008).

Amentum Services, Germantown, Maryland, was awarded a $25,200,000 modification (P00189) to contract W58RGZ-17-C-0011 for contractor logistics support. Work will be performed in Germantown, Maryland, with an estimated completion date of May 31, 2023. Fiscal 2022 operation and maintenance, Army funds in the amount of $25,200,000 were obligated at the time of the award. US Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.

Ernst & Young LLP, Washington, DC, is being awarded a labor-hour contract option for audit services of the Department of the Air Force General Fund and Working Capital Fund financial statements and examination. Work will be performed in Washington, DC, with an expected completion date of Dec. 31, 2023. This contract is the result of a competitive acquisition for which one quote was received. The contract has a 12-month base period plus four individual one-year option periods with a maximum value of $200,222,745. This award brings the total cumulative value of the contract to $72,389,124. Fiscal 2023 Air Force operations and maintenance funds in the amount of $36,610,514.76 are being obligated at the time of this option award. The Defense Finance and Accounting Service, Contract Services Directorate, Columbus, Ohio, is the contracting activity (HQ0423-21-F-0087).

SecuriGence LLC, Leesburg, Virginia, has been awarded a $17,786,941 modification (P00014) to previously awarded task order HR001121F0006 for information technology multi-network support services. The modification brings the total cumulative face value of the task order to $907,699,503 from $889,912,562. Work will be performed in Arlington, Virginia, with an expected completion date of June 2023. Fiscal 2022 research and development funds in the amount of $412,893; and fiscal 2023 research and development funds in the amount of $3,000,000 are being obligated at time of award. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity.

iWorks Corp., Reston, Virginia, was awarded a $12,467,558 firm-fixed-price modification (P00012) to previously awarded Personnel Security Support Services contract HS002121C0002 to exercise an option for continued services for seamlessly vetting personnel for access, preserving the adjudicative decision, and identifying and mitigating insider threat risk for the Defense Counterintelligence and Security Agency (DCSA). Work will be performed in and around Fort George G. Meade, Maryland. This option will be funded with fiscal 2023 operations and maintenance funds. The period of performance for this option is Jan. 5, 2023, through Jan. 4, 2024. This contract modification brings the total base and exercise value of this contract to $42,356,958. DCSA Acquisition and Contracting, Quantico, Virginia, is the contracting activity.

Leidos Inc., Reston, Virginia, has been awarded a $8,062,880 cost-plus-fixed-fee contract to investigate, develop and ultimately transition nonlinear transmission line (NLTL) or other solid-state-based high-power electromagnetics weapon concepts. The work includes developing devices, including suitable user interfaces, embedded controls and diagnostics using an NLTL or alternative solid-state high-power microwave source. Work will be performed at Kirtland Air Force Base, New Mexico, and is expected to be complete by Dec. 2026. This award is the result of a competitive acquisition with four offers were received. Fiscal 2022 and 2023 research, development, test and evaluation funds in the amount of $1,565,752 will be obligated at the time of award. Air Force Research Laboratory, Kirtland AFB, New Mexico, is the contracting activity (FA9451-23-C-A003).

USA Environmental Inc., Oldsmar, Florida, is awarded a maximum-value $95,000,000 cost-plus-award-fee, indefinite-delivery/indefinite-quantity contract for munitions response services for projects at various locations within the Naval Facilities Engineering Systems Command (NAVFAC) Atlantic area of responsibility and potentially at other sites worldwide. Work will be performed primarily in Vieques, Puerto Rico (70%); Hawaii (20%); Washington (5%); North Carolina (2%); Virginia (2%); and Florida (1%) and is expected to be completed by December 2027. Fiscal 2023 environmental restoration (Navy) funds in the amount of $10,000 will be obligated at time of award in order to satisfy the minimum guarantee and will not expire at the end of the current fiscal year. This contract was competitively procured via the System for Award Management contract opportunities website, with two offers received. The Naval Facilities Engineering Systems Command Atlantic, Norfolk, Virginia, is the contracting activity (N62470-23-D-0002).

USA Environmental Inc., Oldsmar, Florida (N62473-23-D-2211); Engineering/Remediation Resources Group Inc., Martinez, California (N62473-23-D-2212); EA-Relyant JV, Hunt Valley, Maryland (N62473-23-D-2213); HL/VRH Federal Services LLC, Maxton, North Carolina (N62473-23-D-2214); PIKA-Insight JV LLC, Stafford, Texas (N62473-23-D-2215); and Bering Sea Eccotech LLC, Anchorage, Alaska (N62473-23-D-2216), are awarded a combined maximum value $95,000,000 firm-fixed price, indefinite-delivery/indefinite-quantity, multiple-award contract for range sustainment and remediation services for Naval Facilities Engineering Systems Command (NAVFAC) Southwest. Work will be performed primarily within the NAVFAC Southwest area of responsibility including California (93%); Arizona (6%); and various locations within the US (less than 1%). Each awardee will be awarded $5,000 to satisfy the minimum guarantee. Fiscal 2023 operation and maintenance (Navy) funds in the amount of $30,000 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was competitively procured via the System for Award Management website, with seven offers received. The Naval Facilities Engineering Systems Command Southwest, San Diego, California, is the contracting activity.

Emcor Government Services, Arlington, Virginia (W91278-23-D-0028); Facility Services Management, Clarksville, Tennessee (W91278-23-D-0029); Hospital Housekeeping Services, Dripping Springs, Texas (W91278-23-D-0030); J&J Worldwide Services, Austin, Texas (W91278-23-D-0031); LFG Services LLC JV, Fort Worth, Texas (W91278-23-D-0032); Tunista Valiant JV LLC, Anchorage, Alaska (W91278-23-D-0033); Valiant Government Services, Hopkinsville, Kentucky (W91278-23-D-0034); and VW International Inc., Alexandria, Virginia (W91278-23-D-0035), will compete for each order of the $99,000,000 firm-fixed-price contract for operation and maintenance, incidental repairs and minor construction. Bids were solicited via the internet with eight received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 12, 2027. US Army Corps of Engineers, Mobile, Alabama, is the contracting activity.

General Dynamics Electric Boat Corp., Groton, Connecticut, was awarded a $50,089,615 cost-plus-fixed-fee modification to a previously awarded contract N00024-12-C-2115 for planning and execution of USS Montana (SSN 794) post delivery work period. Work will be performed in Newport News, Virginia (96%); and Groton, Connecticut (4%), and is expected to be completed by November 2023. Fiscal 2022 shipbuilding and conversion (Navy) funds in the amount of $10,400,000 will be obligated at the time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured. The statutory authority for this sole source award is in accordance with Defense Federal Acquisition Regulation 6.302-1(a)(2)(iii) — only one responsible source and no other supplies or services will satisfy agency requirements. The Supervisor of Shipbuilding Conversion and Repair, Groton, Connecticut, is the contracting activity (N00024-12-C-2115). (Awarded Dec. 9, 2022)

AECOM Technical Services Inc., Los Angles, California (W912UM-23-D-0001); HDR Engineering Inc., Honolulu, Hawaii (W912UM-23-D-0002); Jacobs Government Services Company, Arlington, Virginia (W912UM-23-D-0003); Leo A. Daly/Burns & McDonnell Far East JV, Los Angeles, California (W912UM-23-D-0004); Stanley-WSP JV, Muscatine, Iowa (W912UM-23-D-0005); and Tetra Tech Inc., Marlborough, Massachusetts (W912UM-23-D-0006), will compete for each order of the $200,000,000 firm-fixed-price contract for architect engineer services. Bids were solicited via the internet with 11 received. Work locations and funding will be determined with each order, with an estimated completion date of June 11, 2028. US Army Corps of Engineers, Far East District, is the contracting activity.

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