DoD Adjusts Cash Flow to Contractors in Response to Coronavirus

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DoD will raise progress payments to improve cash flow to contractors as the coronavirus continues to impact the economy, reports Washington Technology. A memo released Sunday describes changes to the payments. Two large defense companies have already cautioned investors over potential workforce and supply chain disruptions. Northrop Grumman last week issued updated risk factor information on possible impacts and General Dynamics followed suit with a similar disclosure Monday, in both cases alongside information about potential new debt offerings.

Defense companies with substantial exposure to commercial markets are taking dramatic measures to counteract the impact of the coronavirus on their bottom lines. CAE, GE, and Airbus are among the companies taking actions now, reports Defense News. The impact on the defense portions of these businesses are less substantial because of the structure of contracts that often extend to multiple years.

Boeing begins a two-week shutdown of production today at its aircraft manufacturing plants in northwest Washington, reports Yahoo Finance. The company will conduct deep cleaning during during the 14 days and establish rigorous criteria for return to work after the closure.

More than 8,000 members of the National Guard, including some through federal funding, are working in all 50 states and four US territories to help control the spreading coronavirus pandemic, reports Stars and Stripes.

The Defense Production Act hasn’t been implemented, according to President Donald Trump, to allow manufacturers to sell vital medical gear to the  highest bidding states, reports Defense One. That’s the problem say the governors.

The Pentagon shut eight of 18 entrances and upped the region’s threat level as positive cases of COVID-19 continue to sprout up throughout the national capital region. Military Times also reports, there is no blanket social distancing policy in the military, said DefSec Mark Esper. Commanders continue to have the authority to take, or not take, Centers for Disease Control and Prevention recommendations as they apply to their units.

Soldiers’ fears grow as commanders train through coronavirus outbreak, reports Army Times. Soldiers report frustration with commanders still sending troops to the field, forcing soldiers to come to work to do mundane tasks that aren’t mission essential, and failing to test potentially sick individuals. “Limited duty days and restricted PT are half-measures and you’re going to get half-assed results,” an Army physician said. “That may have been great for last week, but this week, the cat’s out of the bag.”

 

 

British ear, nose, and throat doctors are suggesting losing the sense of smell may be a hidden symptom of coronavirus, reports The Washington Post, even in patients who are otherwise asymptomatic. They warn adults experiencing recent anosmia, a condition that causes the loss of sense of smell,  could be unknown carriers of COVID-19, and urged them to consider self-isolation. The telltale symptoms of the novel coronavirus have been widely agreed upon — a high fever, persistent cough, or shortness of breath. In the most severe instances, those afflicted have reported confusion or difficulty breathing, and sometimes, anxiety is the most prevailing symptom of all.

Feed St. Mary’s Food Bank opens for business, reports The BayNet. It was established to provide a reliable and sustainable source of food for a dozen soup kitchens and food pantries within St. Mary’s County.

The FAA, responding to airport operators requests, issued guidance on parking “overflow” aircraft, reports Aviation Week. The guidance urges airports to form a committee of key stakeholders, including airlines, fixed-base operators, first responders, and air traffic controllers to develop a plan. Parking on runways “must be avoided,” instead prioritize space at gates, ramps, aprons, and intermediate taxiways assuring aircraft rescue and firefighting response times are not adversely affected.

Hospital ship Mercy is sent to Los Angeles and military field hospitals to New York and Seattle, reports Navy Times. The ship and hospitals are not set up for the isolation protocols needed to prevent the spread of the highly contagious virus, but will take in non-COVID-19 patients to free up medical centers to focus on COVID-19 patients.

Density is New York City’s enemy in the coronavirus fight, reports The New York Times. New York is far more crowded than any other major city in the US. It has 28,000 residents per square mile, while San Francisco, the next most jammed city, has 17,000, according to data from the US Census Bureau.

Drug touted as COVID-19 treatment has troubling side effects, reports Military.com, potentially brain damage in some “susceptible individuals,”according to a former Army doctor.

SecState Mike Pompeo left Afghanistan with no word on a political power-sharing deal, reports Military Times. Aljazeera.com reports US cuts aid by $1 billion after Mr. Pompeo fails to end the impasse.

USNI News Fleet and Marine Tracker: March 23, 2020

Contracts:

CACI Inc. – Federal, Chantilly, Virginia, is awarded $180,336,750 for a single award, indefinite-delivery/indefinite-quantity, performance based, cost-plus-fixed-fee, level-of-effort contract (N65236-20-D-8003) to provide special operations communications systems, satellite communications (SATCOM) and network support services. Work will be performed in Fayetteville, North Carolina (65%); continental US (20%); outside continental US (10%); and Tampa, Florida (5%). This contract will require command, control, communications, computers, combat systems, intelligence, surveillance and reconnaissance to exercise planning and evaluation, systems integration, operational systems, fielding, training, certification, maintenance, logistics, configuration management, systems engineering, network engineering, documentation and graphics support, program management, quality assurance and life-cycle sustainment management and support of deployable tactical SATCOM systems and military information, support operations and equipment for various joint warfighting customers at multiple locations within the global area of responsibility. Work is expected to be complete by March 2025. If the option is exercised, work may continue until September 2025. The contract includes a five-year ordering period and one six-month option with the cumulative value (ceiling) of this contract being $199,486,199. Fiscal 2019 procurement defense agency funding in the amount of $10,000 will be obligated at time of award. Funds will not expire at the end of the current fiscal year. The contract was competitively procured by full and open competition via the Naval Information Warfare Systems Command E-Commerce Central website and two offers were received. The Naval Information Warfare Center Atlantic, Charleston, South Carolina, is the contracting activity.

TW Metals Inc., Carol Stream, Illinois, has been awarded a maximum $62,000,000 firm-fixed-price with economic-price-adjustment contract for commercial metal products. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is an 18-month bridge contract. Locations of performance are Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Illinois, and West Virginia, with a Sept. 24, 2021, performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE8E5-20-D-0001).

JW Clark Enterprises Inc., Chesapeake, Virginia, has been awarded a $16,000,000 modification (P00006) to previously awarded contract FA4800-16-D-0001 to exercise Option Year Four. This modification provides simplified acquisition of Base Civil Engineer Requirements support for Joint Base Langley-Eustis, Virginia. The contract provides all labor, tools, equipment, transportation, materials, supervision, and all other necessary supplies and services required to perform a broad range of maintenance, repair, minor and new construction work on real property on Joint Base Langley-Eustis. Fiscal 2020 operations and maintenance funds will be used to fund individual task orders awarded. Zero funds will be obligated at time of exercising this option year modification. This modification brings the total cumulative face value of the contract to $75,000,000. Work will be performed on Fort Eustis and Langley Air Force Base, and is expected to be complete by March 24, 2021. The 633 Contracting Squadron, Joint Base Langley-Eustis, Virginia, is the contracting activity.