December 13, 2018

DoD Squeeze on Contractor Pay Sits Poorly With Congressional Defense Chairs

contractor pay

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.

Defense News reports that Rep. Mac Thornberry (R-TX) and Sen. Jim Inhofe (R-OK) are siding with the defense industry, and telling the Pentagon to pump the brakes on plans to pay contractors less money up front when it buys major weapons systems. The chairs of the House and Senate Armed Services committees were reacting to a policy proposed to link performance- and progress-based payments more closely to production milestones.

Thornberry was more upbeat about the possibility that predictable military funding could be at hand. The House of Representatives is expected to pass the $717 billion FY 2019 Defense Appropriations Act next week. Thornberry was anticipating the vote, looking ahead to the FY 2020 budget and appropriations process.

The US Marine Corps’ F-35B will soon fly its first combat mission, reports CNN. The F-35s are aboard the USS Essex amphibious assault ship, soon in a position to conduct airstrikes over Afghanistan.

Navy F-35 makes emergency landing at civilian airport, reports Navy Times. The jet landed at Yosemite International Airport in Fresno due to a possible mechanical glitch. The pilot — from the “Rough Raiders” of Strike Fighter Squadron 125 — received an in-flight indication of a potential problem and landed the aircraft without incident.

Upgrading the B-2 bomber may be too late, Bloomberg reports. The improved electronic warfare system, adept at evading improving air defenses of rivals from China and Russia to Iran and North Korea, may be as much as 21 months late. The system from Northrop Grumman for the 1990s-era stealth bomber is projected to cost about $390 million more than planned, or about 14 percent more than the cost that the service calculated in 2015, according to officials and an updated Air Force estimate.

China won’t give US Navy warship permission to make a port call in Hong Kong, reports the Hong Kong-based South China Morning Post. The amphibious assault ship USS Wasp, which carries the F-35B, was expected to visit the former British colony next month, but Beijing has denied the US Navy’s request.

DefSec Jim Mattis says the jury is out on women succeeding in combat jobs, reports Military Times.

Fort Polk soldier was sentenced to 11 years for detonating a chemical weapon near an Army base in Louisiana that injured two soldiers, reports American Military News. Ryan Keith Taylor, 24, of New Llano, LA, received his sentence from US District Judge Jay C. Zainey, according to the Justice Department.

The Air Force picks Boeing and Leonardo’s MH-139 for its Huey helicopter replacement contract, reports Defense News. The Air Force touted the program of an example of cost savings, noting that the service was able to bring down the price of the program from its original $4.1 billion cost estimate.

The Air Force is changing how it sustains the B-1B Lancer bomber and C-5 Super Galaxy cargo plane, using algorithms to predict the need for repairs rather than waiting for a part to break, reports Defense News.

Soldiers attached to Marine units must groom like Marines, reports Navy Times, effective immediately.

Sexual assault risk at your military base: Military Times provides a searchable database.

50 years later, Marine gunny to be awarded the Medal of Honor for Hue City heroics, reports Marine Corps Times. Retired Marine Sgt. Maj. John Canley will receive the Medal of Honor, the nation’s highest award for valor, during a ceremony Oct. 17, the White House announced.

Contracts:

AT&T Corp., Oakton, Virginia, has been awarded an $87,377,959 other transaction agreement to execute the enterprise information technology as a service network as a service experiment. This agreement provides for experimentation of a secure, reliable, measured, commercial data and voice network in order to enable access to Department of Defense data and applications from DoD facilities, as well as enable access for mobile and remotely located users. Work will be performed at Buckley Air Force Base, Colorado; Offutt AFB, Nebraska; and Joint Base Elmendorf Richardson, Alaska, and is expected to be completed by Sept. 30, 2021. Fiscal 2018 operations and maintenance funds are being obligated at the time of award. Air Force Life Cycle Management Center, Hanscom AFB, Massachusetts, is the contracting activity (FA8726-18-9-0001).

GE Aviation Systems, doing business as Dowty Propellers Inc., Sterling, Virginia, has been awarded a $19,565,172 firm-fixed-price contract for the C-130J R391 Propeller Depot Activation requirement. The contractor shall establish an organic depot repair/overhaul capability for the C-130J R391 propeller which will include training for organic repair/overhaul capability for the line replaceable unit and shop replaceable unit. Work will be performed at Robins Air Force Base, Georgia, and is expected to be completed by Sept. 20, 2021. This award is the result of a sole-source commercial acquisition. Fiscal 2018 procurement funds in the amount of $19,565,172 are being obligated at time of award. The Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8504-18-C-0008).

DCS Corp., Alexandria, Virginia, has been awarded a $16,252,479 modification (P00045) to previously awarded FA2486-16-F-0032 for Technical and Management Advisory Services Electronic Warfare support. The contractor will provide additional research, development, test and evaluation, and acquisition support services. Work will be performed at Eglin Air Force Base, Florida; and Edwards Air Force Base, California, and is expected to be completed by Sept. 30, 2019. Fiscal 2018 and 2019 research and development; procurement; and operations and maintenance funds in the amount of $2,161,841 are being obligated at the time of award. Total cumulative face value of the contract is $30,469,693. This modification involves foreign military sales to Belgium, Greece, Iraq, Korea, Morocco, NATO, Norway, Qatar, Saudi Arabia, and Taiwan. Air Force Test Center, Eglin AFB, Florida, is the contracting activity.

AAI Corp., doing business as Textron Systems, Hunt Valley, Maryland, has been awarded an $11,075,000 firm-fixed-price contract for Minuteman III intercontinental ballistic missile sustainment. This contract provides for 32 each of NSN 1450-01-441-4107-AH (PN 33307-40055-10), the Guided Missile Maintenance Platform. This platform is used to access both the missile and the missile silo using a hoist to allow for two individuals to access all areas to complete required maintenance. Work will be performed in Hunt Valley, Maryland, and is expected to be complete by June 26, 2020. This award is the result of a sole-source acquisition. Fiscal 2016 procurement funds in the amount of $11,075,000 are being obligated at the time of award. Air Force Sustainment Center, Hill Air Force Base, Utah, is the contracting activity (FA8206-18-C-0005).

CACI Inc. – Federal, Chantilly, Virginia; and Rome, New York, has been awarded a $9,709,489 cost-plus-fixed-fee contract for Cavalieri software. This contract provides for systems engineering, software development, integration, demonstration, prototyping, documentation, and testing and systems administration to deliver software tools for Space Situational Awareness and Space Battle Management Command and Control. Work will be performed in Rome, New York, and is expected to be complete by Sept. 25, 2021. This award is the result of a competitive acquisition and two offers were received. Air Force Research Laboratory, Rome, New York, is the contracting activity (FA8750-18-C-0180).

Mantech Advanced Systems International, Herndon, Virginia, has been awarded a $12,918,248 cost-plus-fixed-fee contract for security support. This contract provides Sensitive Compartmented Information and Special Access Program security services to the Space and Missile Systems Center and Air Force Space Command operational units. Work will be performed at Los Angeles Air Force Base, California; Vandenberg AFB, California; Peterson AFB, Colorado; and Schriever AFB, Colorado. The work is expected to be completed by Nov. 16, 2019. This award is the result of a competitive acquisition with three offers received. Fiscal 2018 research and development funds in the amount of $10,000 are being obligated at the time of award. The Air Force Space and Missile Systems Center, Los Angeles AFB, California, is the contracting activity (FA8819-18-C-1001).

Norfolk Dredging Co., Chesapeake, Virginia, was awarded an $18,076,560 firm-fixed-price contract for dredging beach-compatible sand from the sand bypass dredging area north of the Canaveral Harbor Inlet and transporting the dredged material to a designated beach placement site south of the inlet. Bids were solicited via the internet with two received. Work will be performed in Cape Canaveral, Florida, with an estimated completion date of April 30, 2019. Fiscal 2018 operations and maintenance (Army) funds in the amount of $18,076,560 were obligated at the time of the award. US Army Corps of Engineers, Jacksonville, Florida, is the contracting activity (W912EP-18-C-0029).

Jacobs Government Services Co., Arlington, Virginia, was awarded a $10,000,000 firm-fixed-price contract for planning, design and construction phase services in support of the Department of Defense Education Activity program. Bids were solicited via the internet with 23 received. Work locations and funding will be determined with each order, with an estimated completion date of Sept. 25, 2023. US Army Corps of Engineers, Norfolk, Virginia, is the contracting activity (W91236-18-D-0011).

CACI-ISS Inc., Chantilly, Virginia, was awarded a $9,202,730 modification (P00043) to contract W15QKN-15-C-0049 for support of project management, integrated personnel and pay system-Army increment II. Work will be performed in Arlington, Virginia, with an estimated completion date of March 31, 2019. Fiscal 2018 other procurement, Army; and research, development, test and evaluation funds in the amount of $7,571,752 were obligated at the time of the award. US Army Contracting Command, New Jersey, is the contracting activity.

Booz Allen Hamilton Inc., McLean, Virginia, was awarded an $8,647,532 modification (P00034) to contract W15QKN-14-C-0032 for system engineering and technical assistance support services. Work will be performed in Arlington, Virginia, with an estimated completion date of March 10, 2019. Fiscal 2018 research, development, test and evaluation funds in the amount of $4,846,000 were obligated at the time of the award. US Army Contracting Command, New Jersey, is the contracting activity.

Siemens Government Technologies Inc., Arlington, Virginia, is awarded $171,543,614 for firm-fixed-price task order N3943018F9924 under a previously awarded multiple award energy savings performance contract (DE-AM36-09GO29041) for energy improvements at Naval Air Station Sigonella, Naval Station Rota, and Naval Support Activity Naples. The work to be performed provides for design and installation of the following energy conservation measures: boiler plants, chiller systems, motors, water and lighting improvements. The work also provides for performance period services consisting of measurement and verification, operations and maintenance, and repair and replacement services. Work will be performed in Naples, Italy (50 percent); Sigonella, Italy (30 percent); and Rota, Spain, (20 percent). The project is expected to be completed by October 2039. No funds will be obligated with this award, as private financing obtained by the contractor will be used for project implementation. Eight proposals were received for this task order. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity.

American Rheinmetall Munition Inc., Stafford, Virginia, is awarded a ceiling $59,703,284 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the purchase of up to a maximum of 2,135,026 MK281 MOD 3 40MM high velocity day/night practice cartridges. MK281 MOD 3 cartridges are for training Marines under day and night/low-light conditions. The MK281 MOD 3 cartridge uses a projectile containing a non-toxic chemiluminescent mixture that becomes visible upon impact at night and low-light conditions. Work will be performed in Camden, Arkansas, and is expected to be complete by Sept. 25, 2022. Fiscal 2017 procurement (Marine Corps) funds in the amount of $10,187,989; fiscal 2017 overseas contingency operations (OCO) (Marine Corps)) funds in the amount of $480,991; and, fiscal 2018 OCO operations and maintenance (Marine Corps) funds in the amount of $795,997 will be obligated on the first delivery order immediately following contract award and no funds will expire the end of the current fiscal year. This contract was awarded on a sole-source basis in accordance with Federal Acquisition Regulation 6.302-1 – only one responsible source and no other supplies or services will satisfy agency requirements. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-18-D-5225).

Huntington Ingalls Inc., Newport News, Virginia, is awarded a $42,600,000 cost-plus-fixed-fee, firm-fixed-price modification to previously awarded contract (N00024-16-C-4316) to continue performance of the repair, maintenance, upgrades, and modernization efforts on USS Helena (SSN 725) dry-docking selected restricted availability. The contracted requirements include advance and new work efforts necessary to repair, and maintain full unrestricted operation of the submarine, as well as upgrades and modernization efforts required to ensure the submarine is operating at full technical capacity. Work will be performed in Newport News, Virginia. Fiscal 2018 operations and maintenance (Navy) funds in the amount of $42,600,000 will be obligated at time of award and will expire at the end of the current fiscal year. The Supervisor of Shipbuilding, Conversion and Repair, USN, Newport News, Virginia, is the contracting activity.

Huntington Ingalls Inc., Newport News, Virginia, is awarded a $26,804,899 cost-plus-fixed-fee modification to previously awarded contract N00024-15-C-2121 for continued engineering, technical, design agent, and hull planning yard services in support of the Navy’s operational aircraft carrier fleet. This modification will provide for engineering and technical services in support of operational Gerald R. Ford (CVN 78) class and propulsion plant related efforts for Nimitz (CVN 68) class aircraft carriers. Work will be performed in Newport News, Virginia, and is expected to complete by September 2019. Fiscal 2018 operations and maintenance (Navy); 2018 weapons procurement (Navy); 2017 shipbuilding and conversion (Navy); and 2018 research, development, test and evaluation (Navy) funding in the amount of $9,229,624 will be obligated at contract award, and $8,604,840 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

Grunley Construction Inc., Rockville, Maryland, is awarded a $25,977,000 firm-fixed-price contract for the design and construction of an Operational Archives and Research Facility at the Washington Navy Yard. The work to be performed provides for the design and construction of a complete renovation of Buildings 46 and 67 to accommodate research and collections at the Naval History and Heritage Command. The project includes upgrading the architectural, structural, electrical, mechanical and fire protection systems of each building, installation of new elevators, replacement of existing windows, and special construction features and requirements for structural premiums to support the loading dock overhead crane system. The project will also renovate Building 169 to house Naval History and Heritage Command artifacts throughout all three phases of renovations. The contract also contains two unexercised options, which if exercised, would increase cumulative contract value to $40,653,000. Work will be performed in Washington, District of Columbia, and is expected to be completed by March 2022. Fiscal 2018 operations and maintenance (Navy) contract funds in the amount of $25,977,000 are obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website with five proposals received. The Naval Facilities Engineering Command, Washington, Washington, District of Columbia, is the contracting activity (N40080-18-C-0033).

URS Federal Services Inc., an AECOM Co., Germantown, Maryland, is awarded a $25,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract in support of the Naval Tactical Computer Resource (NTCR) program for the reutilization, repair, or refurbishment of legacy electronic equipment. Contract requirements also include installation of repaired NTCR equipment, incidental cable assemblies, and obsolescence management. The types of equipment being reutilized, repaired, or refurbished include: combat system displays, computer systems, peripheral systems, and videocassette tape recorders. Work will be performed in Odon, Indiana, and is expected to be completed by September 2028. Fiscal 2018 operations and maintenance (Navy) funding in the amount of $143,749 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 Federal Business Opportunities website, with one offer received. The Naval Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity (N0016418DWP41).

BAE Systems Norfolk Ship Repair, Norfolk, Virginia, is awarded a $24,757,239 firm-fixed-price contract modification to previously-awarded contract N00024-18-C-4403 for additional growth requirements identified during the execution of USS Tortuga (LSD 46) fiscal 2018 modernization period Chief of Naval Operations-scheduled availability. Work will be performed in Norfolk, Virginia, and is expected to be completed by November 2019. Fiscal 2018 operations and maintenance (Navy) funding; and fiscal 2018 other procurement (Navy) funding in the amount of $24,757,239 was obligated at time of award, of which $22,557,239 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

CSRA LLC, a General Dynamics Information Technology Co., Falls Church, Virginia, is awarded a $22,496,620 blanket purchase agreement (BPA) to deliver commercial cloud services by the use of multiple cloud service providers to accelerate Navy cloud adoption. The work encompasses Infrastructure as a Service, Platform as a Service, Software as a Service, and other commercially available cloud service offerings in accordance with the Cloud Computing Security Requirements Guide at Information Impact Levels 2, 4 and 5 as defined in the National Institute of Standards and Technology Special Publication 800-145. The BPA holder shall also provide related services that enable mission owners to transition to and operate within the commercial cloud environment. This BPA includes a one-year base ordering period and four one-year optional ordering periods, which if exercised would bring the estimated cumulative value to $95,844,276. The BPA contains firm-fixed-price, time and materials, and labor hour contract line item numbers. This BPA was issued against CSRA’s General Services Administration (GSA) Schedule 70 contract (GS-35F-393CA), as well as CSRA’s teaming partners’ schedules. CSRA responded to the request for quotation as a contractor teaming arrangement. CRSA’s team members include Beyond20 (GS-35F-137AA); Carahsoft (GS-35F-0119Y); and Minburn Technology Group LLC (GS-35F-309AA). Cloud service providers include Microsoft Azure and Amazon Web Services. Additional team members and cloud service providers may be added to the BPA holder’s team over the term of the agreement in response to Department of the Navy needs. Work on task orders will be performed at various locations in the United States and internationally.  No funding will be obligated at the time of award. Future contract actions will be issued and funds obligated as individual task orders. This BPA was competitively procured with quotations solicited via GSA’s eBUY Portal from all GSA Schedule 70 holders whose schedule contracts include the relevant special item numbers as specified in the performance work statement. The government received four quotations in response to the solicitation. The Space and Naval Warfare Systems Command, San Diego, California, is the contracting activity  (N00039-18-A-0003).

Leidos Innovations Corp., Gaithersburg, Maryland, is awarded a $20,987,917 cost-plus-incentive-fee, cost-plus-fixed-fee, cost only modification to previously awarded contract N00024-16-C-5202 to exercise the options for ship-installation, integrated logistic support, fleet support, and life-cycle-sustainment of the Navy’s AN/SQQ-89A(V)15 Surface Ship Undersea Warfare Systems. The AN/SQQ-89A(V)15 is the Surface Ship Undersea Warfare combat system with the capabilities to search, detect, classify, localize and track undersea contacts, and to engage and evade submarines, mine-like small objects and torpedo threats.  This contract is for four inter-related areas of support for the AN/SQQ-89A(V)15, logistics, installation, fleet support, and life-cycle-sustainment. Work will be performed in Chesapeake, Virginia (26 percent); Everett, Washington (23 percent); Norfolk, Virginia (19 percent); Yokosuka, Japan (14 percent); San Diego, California (13 percent); Bath, Maine (1 percent); Manassas, Virginia (1 percent); Mayport, Florida (1 percent); Pascagoula, Mississippi (1 percent); and Pearl Harbor, Hawaii (1 percent), and is expected to be completed by August 2020. Fiscal 2013, 2016, 2017, and 2018 shipbuilding and conversion (Navy); fiscal 2017 and 2018 other procurement (Navy); and fiscal 2018 operations and maintenance (Navy) funding in the amount of $10,261,096 will be obligated at the time of award, and $75,223 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

G-W Management Services LLC, Rockville, Maryland, is awarded $8,906,365 for firm-fixed-price task order N4008018F5114 under a previously awarded multiple award construction contract (N40080-17-D-0022) for repairs to the chapel exterior at the US Naval Academy complex. The work to be performed provides for safety and fall protection with work from heights and on domed surfaces; repair and replacement of copper roofing and flashing; cleaning, restoration, repair, and replacement of brick and stone masonry; lightning protection; repair and waterproofing of terrace retaining walls; repair of ornamental metals; restoration of wood windows; protective secondary windows; and incidental related work. Work will be performed in Annapolis, Maryland, and is expected to be completed by December 2019. Fiscal 2018 operations and maintenance (Navy) contract funds in the amount of $8,906,365 are obligated on this award and will expire at the end of the current fiscal year. Four proposals were received for this task order. The Naval Facilities Engineering Command, Washington, Public Works Department, Annapolis, Maryland, is the contracting activity.

Johns Hopkins University, Applied Physics Laboratory, Laurel, Maryland, has been awarded a $14,995,942 cost-plus-fixed-fee contract. The contract is to provide assessments and alternatives of offensive capabilities within the domains of air, land, sea, space and cyberspace, missions and warfare areas that asymmetrically mitigate threat effectiveness, impose cost, and/or create ambiguity in adversary decision-making. Work performance will take place in the National Capital Region, including Arlington, Virginia, and Alexandria, Virginia. Fiscal 2018 research, development, test, and evaluation funds in the amount of $11,296,422; fiscal 2018 operations and maintenance funds in the amount of $1,949,520; and fiscal 2018 procurement, Defense wide funds in the amount of $1,750,000 are being obligated on this award. The expected completion date is Dec. 31, 2019. Washington Headquarters Services, Arlington, Virginia, is the contracting activity (HQ0034-13-D-0003).

Sprint Federal Operations LLC, Reston, Virginia, was awarded a firm-fixed-price contract modification (P00024) for exercising option year four for continued operation and maintenance of telecommunications fiber in Europe. The face value of this action is $10,815,551 funded by Defense Working Capital Funds.  Performance will be at various locations within Europe. The period of performance is Oct. 1, 2018, through Sept., 30 2019. The Defense Information Technology Contracting Organization, Scott Air Force Base, Illinois, is the contracting activity (HC1047-15-C-4000).

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