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Defense Spending Sees Largest Hike in 15 Yrs.

F-35

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

With the finalized $1.3 trillion budget deal at the close of last week, Congress gave federal agencies — including the DoD — their full-year spending allotment after nearly a six-month wait, reports Marine Corps Times. Despite the $61 billion increase for defense in the omnibus appropriations bill, Breaking Defense reports, seapower subcommittee leaders are saying they want more money for more ships. Congress provided $3.3 billion more for missile defense programs in its fiscal 2018 spending bill above the Missile Defense Agency’s original request of $9.5 billion, reports Army Times. The omnibus spending bill also added an extra 143 aircraft for the military, reports Defense News.

President Trump is moving ahead with plans to ban transgender troops from serving in the military “except under certain limited circumstances,” reports New York Daily News.

Representatives across the military say salary is a significant barrier to recruiting and retaining cyber talent, Defense Systems reports. US Fleet Cyber Commander VADM Michael Gilday said that while the services’ direct commission programs are designed to attract the tech industry’s best, the $37,000 salary that comes with being a second lieutenant does not.

Lawmakers worried that the US military’s ground forces do not have modern air-defense systems capable of defeating aerial threats from adversaries such as Russia and China, heard from Marine Lt. Gen. Robert Walsh that the USMC is putting together a new, mobile air-defense weapon system that’s mounted on a Joint Light Tactical Vehicle and could be armed with lasers to bring down enemy threats from above, reports Military.com.

The Marine Corps is boosting its annual rotation of forces to Australia’s Northern Territory, reports Stars and Stripes. This “Darwin” mission will include nearly 1,600 Marines, eight MV-22 Osprey tilt-rotor aircraft, and an artillery battery of six M777 Howitzers.

With tensions growing in the Korean Peninsula region, Japan is considering the purchase of F-35Bs and a new multi-purpose aircraft carrier/hospital ship, reports ainonline.com.

A US Navy destroyer carried out a “freedom of navigation” operation late last week, coming within 12 nautical miles of an artificial island built by China in the South China Sea, reports Reuters.

Army soldiers took to the field at Camp Schwab for a comprehensive live-fire exercise on Okinawa, reports Stars and Stripes. It’s the first exercise held in a decade. The day and nighttime training was designed to ensure that all are ready for any situation that might pop up in the Pacific.

Russia has started tests of a new unmanned helicopter that can perform both reconnaissance and combat functions for use by its army in Syria and other hot zones, reports Rotor & Wing International.

A series of equipment casualties on the 49-year-old Coast Guard cutter, the Alert, forced an early end to its counter-narcotics patrol, underlining the needs behind the Coast Guard’s ongoing fleet recapitalization, reports WorkBoat. The cutter had departed Feb. 5 and almost immediately began suffering engineering malfunctions — 35 in all in just the first 19 days at sea.

Those who wish to honor the helicopter pilots and crew members killed in Vietnam can do so April 18 at Arlington National Cemetery, reports Army Times. These service members will have their own monument at the Virginia cemetery. The project was spearheaded by the Vietnam Helicopter Pilots Association.

Contracts:

Bell Boeing JPO, California, Maryland, is being awarded $102,822,726 for a modification to definitize delivery order 0012 under a previously awarded contract (N00019-09-D-0008) for repair of various parts on the V-22 aircraft. Work will be performed in Fort Worth, Texas (80 percent); and Ridley Park, Pennsylvania (20 percent). Work is expected to be completed by December 2019. This modification will bring the estimated value of the contract to $344,235,155. Fiscal 2018 working capital funds (Navy) will be used as individual orders are issued and funds will not expire. One company was solicited for this non-competitive requirement in accordance with 10 US Code 2304(c)(1) and one offer was received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity.

Atmospheric Science Technology LLC, Norman, Oklahoma, is being awarded a $7,096,760 firm-fixed-price contract, resulting from solicitation N00189-18-R-0004, that will provide weather observing and forecasting services as required by the Naval Meteorology and Oceanography Command. The contract will include a 12-month base period which includes a contingency option valued at $17,838, four one-year options, and an option for an additional six-month period should it be deemed necessary pursuant to Federal Acquisition Regulation 52.217-8 with a total value, inclusive of all options, of $39,256.700. Work will be performed in Whidbey Island, Washington (6.37 percent); Virginia Beach, Virginia (5.96 percent); Norfolk, Virginia (5.95 percent); Guantanamo Bay, Cuba (5.73 percent); Jacksonville, Florida (5.62 percent); North Island, California (4.84 percent); Point Mugu, California (4.81 percent); Key West, Florida (4.62 percent); Fort Worth, Texas (4.47 percent); Patuxent River, Maryland (4.34 percent); New Orleans, Louisiana (4.30 percent); Pensacola, Florida (4.24 percent); Fallon, Nevada (3.93 percent); Corpus Christi, Texas (3.68 percent); North Whiting Field, Florida (3.62 percent); El Centro, California (3.47 percent); Kingsville, Texas (3.46 percent); Lemoore, California (3.29 percent); San Clemente Island, California (3.22 percent); South Whiting Field, Florida (3.06 percent); Meridian, Mississippi (3.02 percent); Mayport, Florida (3.00 percent); San Nicholas Island, California (2.65 percent); and San Diego, California (2.35 percent). The contract period of performance will begin September 2018 and work is expected to be completed by September 2019; if all options are exercised, work will continue through February 2024. Fiscal 2018 operations and maintenance (Navy) funds in the amount of $3,859,673 will be obligated at time of award and funds will expire at the end of the current fiscal year. This contract was competitively procured via a solicitation posted to the Federal Business Opportunities website as an 8(a) small business set-aside requirement, with three offers received. Naval Supply Systems Command Fleet Logistics Center Norfolk Contracting Department, Norfolk, Virginia, is the contracting activity (N00189-18-C-0024).

Lyon Shipyard Inc., Norfolk, Virginia (N3220518D4913); Atlantic Fabrication and Boiler Services Inc., Portsmouth, Virginia (N3220518D4914); Colonna’s Ship Yard Inc., Norfolk, Virginia (N3220518D4915); Tecnico Corp., Chesapeake, Virginia (N3220518D4916); Mid Atlantic Engineering Technical Services Inc., Chesapeake, Virginia (N3220518D4917); QED Systems Inc., Virginia Beach, Virginia (N3220518D4918); Auxiliary Systems Inc., Norfolk, Virginia (N3220518D4919); East Coast Repair and Fabrication LLC, Norfolk, Virginia (N3220518D4920); Kerney Service Group Inc., Linden, New Jersey (N3220518D4921); Walashek Industrial and Marine Inc., Norfolk, Virginia (N3220518D4922); G I Industrial – Marine LLC, Portsmouth, Virginia (N3220518D4923); Fairlead Boatworks Inc., Newport News, Virginia (N3220518D4924); Transtecs Corp., Wichita, Kansas (N3220518D4925); ACME Industrial Inc., Staten Island, New York (N3220518D4926); Continental Tide Defense Systems Inc., Reading, Pennsylvania (N3220518D4927); La Playa Inc., doing business as LPI Technical Services, Chesapeake, Virginia (N3220518D4928); and Epsilon Systems Solutions Inc., Portsmouth, Virginia (N3220518D4929), are being awarded a combined cumulative $95,000,000 ceiling indefinite-delivery/indefinite-quantity, multiple award contract for a broad range of ship repair for Military Sealift Command vessels. Work will be performed at government and commercial facilities located on the East Coast continental US. Work is scheduled to commence April 1, 2018, and is expected to be completed by March 31, 2023, if all optional ordering periods are exercised. Fiscal 2018 operations and maintenance (Navy) funds in the amount of $3,500 per contract for a total of $59,500 will be obligated as the initial delivery orders and will satisfy the minimum guarantee requirements. Funds will expire at the end of the current fiscal year. This contract was competitively procured, with proposals solicited via the Federal Business Opportunities website, with 19 offers received. The US Navy’s Military Sealift Command, Norfolk, Virginia, is the contracting activity.

Northrop Grumman Systems Corp., Herndon, Virginia, is being awarded a $9,736,689 cost and cost-plus-fixed-fee modification to a previously awarded contract (N00024-17-C-6327) for Joint Counter Radio-Controlled Improvised Explosive Device Electronic Warfare (CREW) Increment One Block One Systems full rate production in support of the Expeditionary Warfare Program Office. CREW systems provide combat troops protection against radio-controlled improvised explosive devices and are designed to provide protection for foot soldiers, vehicles, and permanent structures. Work will be performed in San Diego, California (97 percent); and Sierra Vista, Arizona (3 percent), and is expected to be completed by August 2022. Fiscal 2018 research, development, test and evaluation funding in the amount of $3,213,108 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

Insitu Inc., Bingen, Washington, is being awarded $8,257,640 for modification P00002 to a previously awarded firm-fixed-price, cost reimbursable contract (N00019-18-C-1006) to procure additional interim contractor support to include logistics support, training, field service representative support and data reporting in support of the RQ-21A Blackjack Unmanned Aircraft System program. Work will be performed in Yuma, Arizona (26 percent); Cherry Point, North Carolina (24 percent); Camp Pendleton, California (14 percent); Kaneohe Bay, Hawaii (14 percent); San Diego, California (9 percent); Little Creek, Virginia (8 percent); and Bingen, Washington (5 percent), and is expected to be completed in September 2020. Fiscal 2018 procurement (Marine Corps); and fiscal 2018 aircraft procurement (Navy) funds in the amount of $5,397,716 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

Northrop Grumman Systems Corp, Melbourne, Florida is being awarded a $13,883,004 firm-fixed-priced contract to provide program and engineering support for E-2D Advanced Hawkeye weapon system trainer development, integration and verification for the government of Japan under the Foreign Military Sales program. The E-2D weapon system trainer will enable training for Japanese Ministry of Defense weapons system operators in the operation and employment of the Japan E-2D Hawkeye aircraft. Work will be performed in Melbourne, Florida (60 percent); Sterling, Virginia (30 percent); and Misawa, Japan (10 percent), and is expected to be completed by September 2020. Foreign military sales funds in the amount of $13,883,004 are being 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 6.302-1. The Naval Air Warfare Center Training Systems Division, Orlando, Florida is the contracting activity (N61340-18-C-0001).

Lockheed Martin Rotary and Mission Systems, Manassas, Virginia, is being awarded a $12,537,910 cost-plus-incentive-fee, fixed-price-incentive, firm-fixed-price and cost-only contract for development, integration, manufacture, production and testing of the Navy’s AN/SQQ-89A(V)15 surface ship undersea warfare systems. The AN/SQQ-89A(V)15 is a surface ship undersea warfare (USW) combat system with the capability to search, detect, classify, localize and track undersea contacts, and to engage and evade submarines, mine-like small objects and torpedo threats. The contract is for development, integration and production of future advanced capability build and technical insertion baselines of the AN/SQQ-89A(V)15 USW systems. This contract includes options which, if exercised, would bring the cumulative value of this contract to $700,808,402. This contract combines purchases for the Navy (84 percent); and the government of Japan (16 percent), under the Foreign Military Sales program. Work will be performed in Manassas, Virginia (82 percent); Liverpool, New York (17 percent); Oldsmar, Florida (1 percent); and Owego, New York (less than 1 percent), and is expected to be completed by March 22, 2026. Fiscal 2016 shipbuilding and conversion (Navy); fiscal 2017 shipbuilding and conversion (Navy); fiscal 2018 research, development, test and evaluation; and fiscal 2018 other procurement (Navy) funding in the amount of $1,203,527 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with one offer received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-18-C-5218).
General Atomics, San Diego, California, is being awarded a $12,400,000 cost-plus-fixed-fee modification (P00007) to a previously issued order (DO 0001) placed against basic ordering agreement N00019-16-G-0006 for repair of repairables (ROR) and technical assistance in support of the Electromagnetic Aircraft Launch System (EMALS) and Advanced Arresting Gear (AAG) systems. ROR includes efforts and materials required to inspect and repair or remanufacture unserviceable repairable components which are provided as government furnished property and return the EMALS and AAG repairable items to a fully operational status. Technical assistance includes the necessary services to provide on-call/on-site emergency repairs. Repair services and technical assistance shall also be provided for EMALS and AAG shipboard systems. Work will be performed in Tupelo, Mississippi (55 percent); San Diego, California (35 percent); Norfolk, Virginia (6 percent); Waltham, Massachusetts (2 percent); Philadelphia, Pennsylvania (1 percent); and San Leandro, California (1 percent), and is expected to be completed in August 2019. Fiscal 2018 shipbuilding and conversion (Navy) funds in the amount of $5,851,000 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

Q.E.D. Systems Inc., Virginia Beach, Virginia, is being awarded a $9,516,522 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract (N3904018D0002) for non-nuclear trade labor support services in support of submarine availabilities. This requirement includes touch labor efforts for nine trades onboard Virginia and 688 class submarines. The trades include non-nuclear welders, pipefitters, firewatches, outside machinists, shipwrights, shipfitters, painters, electricians, and weight handlers. Work will be performed in Kittery, Maine, and is expected to be completed by December 2018. No funding will be obligated at time of award. This contract was not competitively procured under statutory authority 10 US Code 2304(c)(1) – only one responsible source as implemented by Federal Acquisition Regulation 6.302-1(a)(2). The Portsmouth Naval Shipyard, Kittery, Maine, is the contracting activity.

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