April 2, 2023

DoD Fails 2nd Audit – No Surprise

DoD Fails Audit

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.

DoD’s second-ever financial audit shows some progress, but uncovers more new problems than fixes, reports Federal News Network. Last year’s audit made 2,410 separate findings and recommendations. The 2019 financial report found 556 of those resolved, but in addition to more than 1,800 problems remaining from 2018, auditors made more than 1,300 new findings during the course of the latest audit.

DoD’s comptroller said the results of the 2019 audit were expected, reports Defense.gov. DoD has 3 million employees in 160 countries, more than 4,500 defense sites, nearly 30 million acres of land, a $292 billion inventory, 573,000 building structures, more than $2.9 trillion in total assets, and $2.8 trillion in liabilities.

The US breaks off talks with South Korea over President Donald Trump’s insistence that South Korea pay more toward the cost of hosting US troops and suggestsd pulling US troops out altogether. Reuters calls it a rare public show of discord in the 70-year alliance against North Korean aggression.

The Air Force proposes retiring as many as 21 of its intelligence-gathering Global Hawk drones as part of steep cuts to legacy programs in a move toward building the new capabilities needed to counter China and Russia, reports Foreign Policy.

With expected deliveries of the F-35 and the relatively young age of the F-22 fleet, the Air Force is under no pressure to settle on a next-generation fighter design and expects the design will contain much more than a single aircraft, reports Defense News.

Egypt concluded a deal to buy Russian Su-35s jets, bringing a warning from the US that purchase of Russian fighter jets risks American sanctions, reports Military Times.

Boeing is seeing a resurgence of its MAX sales including a commitment from Air Astana for 30 MAXs, a firm order behind the scenes for 20 more, and new widebody business from Ghana’s new national carrier, reports Aviation Week.

Sen. Charles Schumer (D-NY) wants DefSec Mark Esper to detail how the Pentagon is protecting officials from retaliation when they testify as part of the impeachment inquiry into President Trump, reports The Hill.



The US military was urged to “stop flexing muscles” in the South China Sea by Chinese defense minister Gen. Wei Fenghe in his first face-to-face meeting with DefSec Esper, reports Navy Times. The disputed South China Sea remains a point of persistent friction, which both sides said was generally improving.

The House and Senate agree on a budget deal to extend government funding for four more weeks, until Dec. 20, reports Politico. The deal leaves out restrictions on border barrier spending, includes a 3.1 percent military pay raise, extra cash to gear up for the 2020 census, and avoids a $7.6 billion cut to state highway programs.

Defense News explains the details of a continuing resolution, the increasingly frequent mechanism lawmakers use to fund the government while postponing longer-term spending measures.

Over the next couple of months, US Space Command is set to grow by 25%, reports c4isr.net. The command is made up of about 400 people at headquarters, which is expected to increase to 500 at the beginning of next year.

Lockheed wins a $3.3 billion, 10-year DoD contract for orbital operations, logistics and support of three US Air Force satellite systems, reports UPI. The contract calls for maintenance of the Advanced Extremely High Frequency program, used by the US Air Force and allies British Armed Forces, Canadian Armed Forces, and Royal Netherlands Armed Forces, as well as two older systems, Milstar and the Defense Satellite Communications System, used by the United States alone.

Families of seven sailors who drowned joined 40 shipmates injured in the 2017 collision aboard the USS Fitzgerald to sue the Japanese company that chartered the merchant vessel the ACX Crystal. The complaints seek more than $287 million in damages, reports Navy Times.


Bell Boeing Joint Project Office, California, Maryland, has been awarded a maximum $379,377,099 firm-fixed-price requirements contract for maintenance, repair and consumable material support for the V-22 platform. This was a sole-source acquisition using justification 10 US Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a five-year base contract with one five-year option period.  Locations of performance are Maryland, Texas and Pennsylvania, with a Nov. 20, 2024, performance completion date. Using military services are Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2025 defense working capital funds.  The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania (SPE4AX-20-D-9401).

Lockheed Martin Rotary and Mission Systems, Manassas, Virginia, is awarded a $54,597,891 cost-plus-incentive-fee contract modification to previously awarded contract N00024-17-C-6259 to exercise and fund options for Navy equipment, production support and required long lead materials.  Work will be performed in Manassas, Virginia (65%); Clearwater, Florida (32%); Syracuse, New York (2%); and Marion, Florida (1%), and is expected to be complete by September 2021. Fiscal 2020 other procurement (Navy); and 2019 shipbuilding and conversion (Navy) funding in the amount of $46,832,561 will be obligated at the time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington Navy Yard, Washington, District of Columbia, is the contracting activity.

Northrop Grumman Systems Corp., Baltimore, Maryland, is awarded a $13,046,971 modification for the firm-fixed-price portion of a previously awarded contract (M67854-19-C-0043).  This modification is for the purchase of gallium nitride full rate production diminishing manufacturing sources and communications equipment group shelter integration in Lot One in support of Program Executive Officer Land Systems, Quantico, Virginia. Work will be performed in Baltimore, Maryland, and is expected to be complete by May 2, 2022.  Fiscal 2020 procurement (Marine Corps) funds in the amount of $13,046,971 will be obligated at the time of award and will not expire at the end of the current fiscal year.  The contract modification was not competitively procured.  The base contract was prepared in accordance with Federal Acquisition Regulation 6.302-1 and 10 U.S. Code § 2304(c)(1).  The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-19-C-0043).

Melwood Horticultural Training Center Inc., Upper Marlboro, Maryland, is awarded an $8,639,459 indefinite-delivery/indefinite-quantity (IDIQ) modification for the exercise of Option Four under an IDIQ contract for custodial services at US Naval Academy complex. The work to be performed provides for custodial services such as trash removal, cleaning, vacuuming, floor cleaning and scrubbing, re-lamping, specialized cleaning of the John Paul Jones Crypt, and basketball floor installation and removal. After award of this option, the total cumulative contract value will be $41,707,319. Work will be performed in Annapolis, Maryland. This option period is from December 2019 to November 2020. No funds will be obligated at time of award.  Fiscal 2020 operation and maintenance, (Navy) contract funds in the amount of $8,639,459 for recurring work will be obligated on individual task orders issued during the option period.  The Naval Facilities Engineering Command, Washington, Public Works Department, Annapolis, Maryland, is the contracting activity (N40080-16-D-0303).

CORRECTION: The Nov. 13, 2019, announcement of a $32,266,994 modification to ManTech International Inc., Fairfax, Virginia, exercising Option Year One to previously awarded contract FA8819-18-C-1001 for security support, included the wrong modification number. The correct modification number is P00018.

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