April 27, 2024

Lockheed Top Dollar Contractor Again

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.

The General Services Administration has released the FY22 report detailing how much money federal agencies committed to pay to their top 100 contractors from October 1, 2021, to September 30, 2022. The Hill reports Lockheed Martin topped the list, $47.7 billion up from $42.1 billion in FY21; Raytheon Technologies, scored $27 billion, up from $21.6 billion; General Dynamics at $24.7 billion up from $20.5 billion. Fourth was Pfizer scoring $18 billion, which, like the top three, came mostly from DoD.

The Space Force plans to buy even more rocket launches from companies in the coming years than previously expected, granting more companies a chance at securing billions in potential contracts, reports CNBC. “That just blows my mind,” said COL Doug Pentecost, deputy program executive officer of the US Space Force’s Space Systems Command. “We had only estimated 36 missions in Phase 2. For Phase 3, we’re estimating 90 missions.”

Since 2018, Flannery Associates has been methodically buying up the available land around Travis Air Force Base in Solano County, CA, reports Military.com. The $1 billion worth of transactions have caught the eye of the US government — but no one can figure out who the mystery buyer actually is. Solano County is the northeastern county in the nine-county San Francisco Bay Area region.

Congress is poised to advance two major pieces of defense legislation ahead of Friday’s start of its end-of-summer break, says Military Times, but completion of either measure is still months away. The Senate is expected to finalize its version of the annual defense authorization bill before the end of the week. Meanwhile, the Senate Appropriations Committee is set to vote today, Thursday, on its budget plan for DoD for next fiscal year. If the two bills pass, that leaves staffers the upcoming six-week break to start negotiating compromise bills, a particularly hefty task for the NDAA given the partisan fights in the House over its version.

Also this week the Republican-controlled House of Representatives plan was to consider FY24 appropriations bills of $155.7 billion for military construction and veterans and $25.3 billion for agriculture, rural development, and the Food and Drug Administration. Reuters reports some measures would limit abortion and transgender rights.

President Joe Biden is set to announce that he has picked GEN David Allvin to lead the Air Force, reports Politico. If confirmed, Allvin will replace Air Force Chief of Staff GEN C.Q. Brown, who was tapped in May to serve as the next Joint Chiefs chair.

Hundreds of military spouses are demanding Senate leaders find a way to end an Alabama Republican senator’s single-handed blockade of more than 280 senior officer promotions, reports Stars & Stripes. The petition of 500 signatures blasted Sen. Tommy Tuberville’s (R-AL) procedural hold on all general and admiral promotions as “inappropriate and unpatriotic.” Tuberville is protesting a Pentagon policy that reimburses travel expenses and allows personal leave for reproductive health care banned in several states.

Boeing expects to finish production of its F/A-18E/F Super Hornet in about two years, having lost an Indian Navy contest for 26 carrier-based fighters, reports Flight Global. “We are likely to cease production around the 2025 timeframe,” confirms Bernd Peters of Boeing Defense, Space & Security. A new international order would have potentially continued manufacturing activities until 2027.

The Space Force has drafted a framework to conscript commercial satellite services in times of crisis parallel to the existing Air Force and Navy civil reserve fleets that allow those services to call up non-military planes and ships in times of need, reports Breaking Defense.

It is rare for a US ship to join the fleet in a foreign port, but christening the USS Canberra (LCS-30) at the ancestral home of the Royal Australian Navy honors the connection the original Canberra forged between the navies in WWII. Australia and the United States are once again facing “significant challenges” in the Indo-Pacific region, USNI quotes NavSec Carlos Del Toro. “The People’s Republic of China continues the rapid expansion of its navy, leveraging its maritime organizational strength to coerce and intimidate its neighbors into accepting illegitimate maritime claims.”

Dozens of mortar shells and rockets screamed across the Australian bush into a mountainside last weekend, one of two live-fire demonstrations that kicked off the largest-ever Talisman Sabre exercise. Stars and Stripes reports troops from seven countries gathered at Shoalwater Bay Training Area — 442 miles north of Brisbane in eastern Australia — on Saturday to watch American, Australian, South Korean, and Japanese crews fire artillery during a simulated attack. Behind the scenes, support personnel from France, Germany, and New Zealand also participated.

A second US nuclear-powered submarine, USS Annapolis, arrived in South Korea on Monday, only days after a US nuclear armed submarine made port in the country for the first time in four decades. The allies seek to boost American strategic assets to deter North Korea, Reuters reports.

After years of pandemic isolation, North Korea is hosting senior Chinese and Russian delegations for its 70th anniversary commemorations of the Korean War and the struggle against the US and its allies, reports Reuters.

Five Marines on a training flight June 8, 2022, died when their Osprey suffered a catastrophic clutch issue, according to a recently released Marine Corps investigation report. Military.com reports the military continues to fly the V-22 with no firm understanding of the cause or any definitive mechanical fix. The hard clutch engagement can shred components responsible for powering the aircraft’s propellers. The issue has plagued the Osprey platform for years but was not publicly acknowledged until after the 2022 crash.

AP reports the week opened with Russian authorities accusing Ukraine of launching a drone attack on Moscow early Monday that saw one of the aircraft fall near the Defense Ministry’s main headquarters, while the Russian military unleashed new strikes on port infrastructure in southern Ukraine.

The Russian parliament’s lower house extended the upper age limit for the compulsory military draft from 27 to 30, a move that appears to be part of efforts by the Kremlin to expand the military during the fighting in Ukraine, reports Military.com. All Russian men aged 18-27 are currently obliged to serve in the military for one year, although many avoid the draft by using deferments granted to students, people with chronic illnesses, and others.

Human-induced climate change has played an “absolutely overwhelming” role in the extreme heatwaves that have swept across North America, Europe, and China during July 2023, according to an assessment by scientists published Tuesday. The World Weather Attribution team estimated that rising greenhouse gas concentrations made the European heatwave 2.5 Celsius (4.5 Fahrenheit) hotter than it would otherwise have been, drove up the North American heatwave by 2C, and by 1C in China. They estimated that prolonged periods of extreme heat were likely to hit every two to five years if average global temperatures rise 2C above pre-industrial levels. Average temperatures are currently estimated to have risen more than 1.1C.

Cyberattacks hitting the agriculture sector in 2021, including meat producer JBS Foods which disrupted the nation’s food supply chains, have led Senators to introduce legislation to strengthen agricultural and rural communities against cyberattacks on the agricultural infrastructure, reports OODA Loop.

Baltimore sailor Donald Lawson remains missing at sea. The US Coast Guard confirmed his disappearance Sunday. Lawson took off July 5 from Acapulco, Mexico, on a voyage to Panama. His last point of contact came July 12, when his wife communicated with him, reports The Baltimore Sun. On Tuesday, Baltimore Banner reported that a Mexican search plane spotted a yacht believed to belong to him 275 nautical miles off the coast of Acapulco. As of Tuesday evening, weather had prevented rescue crews from reaching the vessel.

Military.com bids a fond farewell to Tony Bennett paying tribute to the crooner’s years in the Army during World War II. “The main thing I got out of my military experience was the realization that I am completely opposed to war,” Bennett wrote in his 1998 autobiography, “The Good Life.” “Although I understand why this war was fought, it was a terrifying, demoralizing experience for me … life can never be the same once you’ve been through combat.” Bennett’s time in the war included witnessing front line carnage, liberating a German concentration camp, and war reparation work involving singing. It was seeing Bob Hope on a USO tour that set Bennett on his career path. “All the GIs loved him so much for boosting our dismally low morale,” wrote Bennett. “He became a big part of the reason I went into show business, because at that moment he made me realize that the greatest gift you can give anyone is a laugh or a song.”

Contracts:

Progeny Systems LLC, Manassas, Virginia, is awarded a $19,152,106 cost-plus-fixed-fee modification to previously awarded contract N00024-18-C-6265 to exercise options for engineering and technical services for software development, and hardware and software integration to Navy Submarines. Work will be performed in Manassas, Virginia (65%); Middletown, Rhode Island (25%); and San Diego, California (10%), and is expected to be completed by July 2024. Fiscal 2023 research, development, test, and evaluation (Navy) funds in the amount of $3,309,053 (82%); fiscal 2023 National Sea-Based Deterrence Funds in the amount of $659,996 (16%); and fiscal 2023 operations and maintenance (Navy) funds in the amount of $94,960 (2%), will be obligated at time of award, of which $94,960 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, DC, is the contracting activity.

Lockheed Martin Rotary and Mission Systems, Manassas, Virginia, is awarded an $8,349,013 cost-plus-incentive-fee modification to previously awarded contract N00024-15-C-5151 to exercise options for shipboard integration and test of the AEGIS Weapon System. Work will be performed in Moorestown, New Jersey (49%); Norfolk, Virginia (15%); San Diego, California (8%); Washington, DC (7%); Pascagoula, Mississippi (6%); Mayport, Florida (4%); Bath, Maine (3%); and various places each below one percent (8%) and is expected to be completed by February 2025. Fiscal 2016 shipbuilding and conversion, Navy funds in the amount $4,516,523 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, DC, is the contracting activity.

Applied Research Associates Inc., Albuquerque, New Mexico (FA8612-23-D-B002); Armaments Research Co. Inc., Bethesda, Maryland (FA8612-23-D-B003); BadVR Inc., Pacoima, California (FA8612-23-D-B004); CGI Federal Inc., Fairfax, Virginia (FA8612-23-D-B001); Flosum Corp., San Ramon, California (FA8612-23-D-B017); Management Services Group Inc., doing business as Global Technical Systems, Virginia Beach, Virginia (FA8612-23-D-B005); Convergent Solutions Inc., doing business as Exiger Government Solutions, McLean, Virginia (FA8612-23-D-B006); Odyssey Systems Consulting Group LTD., Wakefield, Massachusetts (FA8612-23-D-B008); Steeple Group LLC, doing business as Peregrine Defense, Oklahoma City, Oklahoma (FA8612-23-D-B014); Picogrid Inc., Hawthorne, California (FA8612-23-D-B009); Rescue Rover LLC, doing business as AlphaBravo, Gaithersburg, Maryland (FA8612-23-D-B010); Rafael Systems Global Sustainment LLC, Bethesda, Maryland (FA8612-23-D-B011); and Spotible Labs LLC, New York, New York (FA8612-23-D-B012), have been awarded indefinite-delivery/indefinite-quantity contracts with a combined ceiling of $950,000,000 to compete for future efforts associated with the maturation, demonstration, and proliferation of capability across platforms and domains, leveraging open systems design, modern software and algorithm development to enable Joint All Domain Command and Control. These contracts provide for the development and operation of systems as a unified force across all domains (air, land, space, sea, cyber, and electromagnetic spectrum) in an open architecture family of systems that enables capabilities via multiple integrated platforms. The locations of performance are to be determined at the contract directed order level and are expected to be complete by May 28, 2025. These awards are the result of fair and open competition. Air Force Life Cycle Management, Wright-Patterson Air Force Base, Ohio, is the contracting activity.

Amentum Service Inc., Chantilly, Virginia, has been awarded a $223,587,481 contract for aircraft maintenance and back shop support services. This contract provides for 24 hours a day, seven days a week, aircraft maintenance and back shop service requirements supported by the contractor. Work will be performed at Joint Base Andrews-Naval Air Facility Washington and is expected to be completed by June 30, 2028. This contract was a competitive acquisition and one offer was received. Fiscal 2023 operations and maintenance funds in the amount of $34,960,103 are being obligated at time of award. The 316th Contracting Squadron Services Flight, Joint Base Andrews, Maryland, is the contracting activity (FA2860-23-F-0060).

Northrop Grumman Systems Corp., Linthicum Heights, Maryland, is awarded $24,335,192 for firm-fixed-price, spares delivery order N00383-23-F-ZJ0L under a previously awarded basic ordering agreement (N00383-21-G-ZJ01) for the procurement of 25 frequency converters in support of the P-8 ALQ-240 system. The delivery order does not include an option period. All work will be performed in Linthicum Heights, Maryland, and work is expected to be completed by June 2027. This effort combines purchases under the Foreign Military Sales (FMS) Program, and funds will not expire at the end of the current fiscal year. Funds in the full amount of $24,335,192 will be obligated at time of award. This effort combines purchases of working capital funds (Navy) in the amount of $20,441,561 along with FMS funds in the amount of $3,893,631. FMS funds will be from United Kingdom funds (25%); FMS Norway (25%); FMS New Zealand funds (25%); and FMS South Korea funds (25%). One firm was solicited for this non-competitive requirement pursuant to the authority set forth in 10 US Code 2304 (c)(1), with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity.

Johns Hopkins University Applied Physics Laboratory, Laurel, Maryland, was awarded a $165,914,899 task order for Sentinel support. This task order is from a previously awarded contract (FA8204-21-D-0001) and provides for continuing the strategic partnership between government and JHU/APL. This contract provides for procurement of engineering, systems engineering for complex systems, research, and development of specialized functions. Work will be performed in Laurel, Maryland, and is expected to be completed July 23, 2026. This contract was a sole-source acquisition. Fiscal 2023 research, development, test, and evaluation funds in the amount of $13,000,000 are being obligated at time of award. The Air Force Nuclear Weapons Center, Hill Air Force Base, Utah, is the contracting activity (FA8204-23-F-0028). (Awarded July 24, 2023)

Schuyler Line Navigation Co., LLC, Annapolis, Maryland, is awarded a $19,347,074 firm-fixed-price contract with reimbursable elements (N3220523C4019) for a time charter of one U.S. Flag tanker, Goodwill, with an Inert Gas System and Segregated Ballast Tanks that is capable of carrying a minimum of 270,000 barrels of clean petroleum products (intention JP8, JP5, F76) within the vessel’s natural segregation in designated cargo tanks with double valve isolation. This contract includes a 12-month base period with three 12-month option periods and one 11-month option, which, if exercised, would bring the cumulative value of this contract to $93,324,449. Work will be performed in the Far East; and worldwide, and is expected to be completed, if all options are exercised, by August 2028. Working capital funds (Transportation) in the amount of $19,347,074 are obligated for fiscal 2023, and will expire at the end of the fiscal year. This contract was competitively procured with proposals solicited via the System Award Management website and one offer was received. Military Sealift Command, Norfolk, Virginia, is the contracting activity (N3220523C4019).

Capps Shoe Co., Gretna, Virginia, has been awarded a maximum $15,111,900 modification (P00015) exercising the fourth one-year option period of a one-year base contract (SPE1C1-19-D-1202) with four one-year option periods for men’s and women’s leather oxford and poromeric upper dress shoes. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Michigan, with a July 26, 2024, ordering period end date. Using military services are Army, Air Force, Navy, Marine Corps, and Coast Guard. Type of appropriation is fiscal 2023 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. 

CACI Inc.-Federal, Chantilly, Virginia, was awarded a $14,863,683 firm-fixed-price contract for cybersecurity services. Bids were solicited via the internet with six received. Work will be performed at Fort Belvoir, Virginia; Washington, DC; Fort Cavazos, Texas; and Fort Gordon, Georgia, with an estimated completion date of Aug. 26, 2028. Fiscal 2023 operation and maintenance, Army funds in the amount of $2,000,000 were obligated at the time of the award. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W519TC-23-F-0281).

HII Fleet Support Group LLC, Virginia Beach, Virginia, was awarded a $17,659,231 cost-plus-fixed-fee award delivery order N62793-23-F-0006 off of contract N00024-21-D-4114 providing execution support for USS John C. Stennis Refueling Complex Overhaul, Carrier Engineering Maintenance Assist Team (CEMAT). Contractor support includes providing assistance to ship’s force in the preparation, evaluation, and execution of work required; specifically providing technical guidance pertaining to maintenance execution; providing technical in-process review of work and assisting ship’s force to complete corrective action for identified items; maintaining continuing status of jobs assigned for CEMAT technical assistance and changes of equipment material condition; and where specified providing “hands on” instruction in fault identification and application of current maintenance/repair techniques in accordance with Section C of contract N00024-21-D-4114. Work will be performed in Newport News, Virginia, and is expected to be completed by July 14, 2024. Fiscal 2023 shipbuilding and conversion (Navy) funds in the amount of $17,659,231 were obligated at time of award and will expire at the end of fiscal 2028. The Supervisor of Shipbuilding, Conversion and Repair, Navy, Newport News, Virginia, is the contracting activity. (Awarded July 15, 2023)

Huntington Ingalls Inc. – Newport News Shipbuilding, Newport News, Virginia, was awarded a $528,381,355 cost-plus-fixed-fee, cost-plus-award fee, cost-plus-incentive-fee, indefinite-delivery/indefinite-quantity contract to support emergent work, continuous maintenance availabilities, pre-refueling complex overhaul availabilities, and Chief of Naval Operations scheduled availabilities for Navy aircraft carriers homeported in and visiting the San Diego, California, area. Work is expected to be completed by July 2028. No funds will be obligated at the time of award; funds will be obligated on individual orders as they are issued. This contract was competitively procured and solicited via the System for Award Management website. The Naval Sea Systems Command, Washington, DC, is the contracting activity (N00024-23-D-4107). (Awarded July 21, 2023)

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