US Firms Drag Down Global Arms Sales

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Last year, annual weapons sales by leading US defense companies fell, contributing heavily to the top 100 global defense companies suffering a real terms revenue dip of 3.5%, reports Breaking Defense. A report released this week by the Stockholm International Peace Research Institute says weapon sales and “military services” from the 100 companies amounted to $597 billion last year, marginally higher in monetary terms than 2021 when a figure of $592 billion was recorded but actually a few percentage points lower when factoring in inflation. The US was the chief cause of the decline. US competitor revenues across Asia and Oceania and the Middle East had, “increased substantially.” Arms revenues by the 42 US companies on the top 100 list fell by 7.9% to $302 billion in 2022.

America’s defense industry is struggling to achieve the kind of speed and responsiveness to stay ahead in a high-tech arms race with competitors such as China, an unreleased draft of a new Pentagon report on the defense industry warns. Politico reports that the first-ever National Defense Industrial Strategy, to be released in the coming weeks by the Pentagon, is meant to identify how to tap the expertise of small tech firms and spur traditional companies to develop new tech faster.

Commercial ships came under attack Sunday by drones and missiles in the Red Sea and during an hours-long assault. The Navy destroyer Carney shot down multiple air drones claimed by Yemen’s Iran-backed Houthi rebels, Military Times reports. The next day the White House said the US may establish a naval task force to escort commercial ships in the Red Sea.

The government must include the Merchant Marine as part of its effort to deter China, says Sen. Mark Kelly (D-AZ). He is developing legislation meant to revitalize the US commercial maritime industry, which he called an economic and national security imperative.

NavSec Carlos Del Toro is also stressing the need for a strong commercial counterpart for the Navy to fulfill its mission. The US commercial maritime industry has long been shrinking. Defense News reports from 1953 to 2016, the number of shipyards capable of building large, oceangoing military and commercial vessels declined from 30 to six, and their annual output declined from 60 to seven, according to an analysis of US shipbuilding records.

An annual Pentagon report on extremism within the ranks reveals that 78 service members were suspected of advocating for the overthrow of the US government and another 44 were suspected of engaging or supporting terrorism. Military.com reports on a report released Thursday by the DoD inspector general that revealed 183 allegations of extremism in 2023 across all the branches of military, broken down not only into efforts to overthrow the government and terrorism but also advocating for widespread discrimination or violence to achieve political goals.

A 2020 initiative to reduce racial bias in the military’s advancement process included removing photos and other racial and gender markers in promotional packets. It may have helped, reports Military Times. Early research by the RAND Corp. shows an increase in officers of color moving up the Army’s ranks, since the policy was implemented, according to a report published Thursday.

In a letter to congressional leaders, Office of Management and Budget Director Shalanda Young wrote the government is “out of money — and nearly out of time” to continue giving aid to Ukraine, reports The Hill. The White House pleaded with Congress to act on a supplemental funding request first submitted in October, arguing it is of critical importance to US national security.

As part of the Biden administration’s push for a $106B request for the wars in Ukraine, Israel, and other security needs, Ukraine President Volodymyr Zelenskyy was invited to address US senators by video during a classified briefing on Tuesday. AP News reports, Senate Majority Leader Chuck Schumer (D-NY) announced Zelenskyy’s appearance after the administration Monday sent an urgent warning about the need to approve the military and economic assistance to Ukraine, saying Kyiv’s war effort to defend itself from Russia’s invasion may grind to a halt without it.

House and Senate appropriators have added into their two fiscal 2024 Defense spending bills a combined $25.7 billion the Pentagon did not formally seek for more than 1,200 research and procurement projects, according to a CQ Roll Call analysis. Military.com reports the House-passed Defense appropriations bill would add $10.7 billion into weapons accounts for 580 different programs. The Senate’s companion measure contains nearly $15 billion inserted by senators for an almost completely different set of 636 weapons projects, according to the Taxpayers for Common Sense database.

Without giving specifics, NATO Secretary-General Jens Stoltenberg warned that the Western military alliance “should be prepared for bad news” from the Ukrainian front as Kyiv continues to defend against Russia’s all-out invasion, reports Politico.

CNN reports that Russian President Vladimir Putin has ordered the country’s military to increase its number of troops by 170,000, as Moscow’s war in Ukraine enters its 22nd month. The increase would take the overall number of Russian military personnel to more than 2.2 million, including 1.32 million troops, according to the decree published by the Kremlin on Friday.

Reuters reports a growing movement of Russian women is demanding the return from the front of their husbands, sons, and brothers who were mobilized after a decree by Putin in September last year.

Hackers have targeted Austal USA in a ransomware attack and US Navy data is at risk, reports Defense Connect. Australian Cybersecurity Magazine says the Hunters International cybercrime gang launched the attack on Austal USA, which has several sensitive projects underway at its Mobile, AL shipyard, including the littoral combat ship and Virginia class nuclear-powered submarine. The company is also gaining a foothold in the autonomous boat-building sector.

US  and Japanese search teams have found the remains of all eight crew members of the Air Force’s CV-22B Osprey crash Nov. 30 near Yakushima Island off the coast of Japan, reports Military.com.

Hundreds of protesters rallied on Monday in protest against the V-22 Osprey, a helicopter-airplane hybrid, reports Stars and Stripes.

The Navy will soon begin search and salvage operations for an Army MH-60 Black Hawk helicopter that crashed in the Mediterranean Sea on Nov. 10, killing all five special operations soldiers on board. Navy Times reports the incident remains under investigation and further details have not yet been released.

The Navy on Saturday raised its P-8A Poseidon aircraft that slid into Hawaii’s Kaneohe Bay after it overshot the runway on Nov. 20. Navy Times has released underwater video footage of the Poseidon.

Military Times provides the list of more than 400 officers, finally promoted on Tuesday to fill leaderships roles across the military. Sen. Tommy Tuberville (R-AL) had held up all promotions for nearly 10 months before dropping his hold on Tuesday for fast confirmation of the senior military members.

If there is one underappreciated piece of gear that can make or break you, it’s your socks. Military Times provides an exhaustive study on the subject and recommended the six best socks for troops — and anybody else who spends time on their feet.

Contracts:

ASRC Federal Facilities Logistics LLC, as successor-in-interest to Science Applications International Corp., Beltsville, Maryland, has been awarded a maximum $95,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for facilities maintenance, repair and operations supplies. This was a sole-source acquisition using justification 10 US Code 2304 (a)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a 199-day bridge contract with no option periods. Locations of performance are West Virginia, Virginia; and Washington, DC, with a June 30, 2024, ordering period end date. Using customers are Army, Navy, Air Force, Marine Corps, and Coast Guard. Type of appropriation is fiscal 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE8E3-24-D-0003).

Northrop Grumman Systems Corp., Charlottesville, Virginia, is being awarded $12,460,677 for a firm-fixed-price, non-commercial contract for the procurement of 12 items in support of the WSN-7 ship inertial navigation system. This is a five-year contract with no option periods, and work will be completed by June 2028. All work will be performed in Charlottesville, Virginia. Working capital (Navy) funds in the full amount will be obligated at time of award and funds will not expire at the end of the current fiscal year. One company was solicited for this sole-source requirement pursuant to the authority set forth in 10 US Code 3204 (a)(1), with one offer received. Naval Supply Systems Command Weapon Systems Support, Mechanicsburg, Pennsylvania, is the contracting activity (N00104-24-C-UA09).

The McHenry Management Group of Chesapeake, Virginia (N3220524D0027), is being awarded a $38,100,299 firm-fixed-price contract for engineering and technical services associated with ship material assessment and readiness testing programs, safety management system programs, and damage control –environmental protection programs for Military Sealift Command’s (MSC) government-owned, government-operated fleet and government-owned, contractor-operated fleet. This contract includes a five-year base period and a six-month option period which, if exercised, would being the cumulative value of this contract to $39,653,946. Work will be performed worldwide and is expected to be completed, if the option is exercised, by June 6, 2029. Navy working capital funds in the amount of $3,500 are obligated for fiscal 2024 and will expire at the end of fiscal year. This contract was a small business set-aside with more than five companies solicited via the Procurement Integrated Enterprise Environment /SAM.gov website and one offer received. MSC, Norfolk, Virginia, is the contracting activity (N3220524D0027).

Booz Allen Hamilton, McLean, Virginia (W900KK-24-D-0003); Client Solution Architects, Virginia Beach, Virginia (W900KK-24-D-0004); General Dynamic Information Technology Falls Church, Virginia (W900KK-24-D-0005); Northup Grumman, McLean, Virginia (W900KK-24-D-0006); Phoenix Logistics, Gilbert, Arizona (W900KK-24-D-0007); Valian Global Defense Services, San Diego, California (W900KK-24-D-0008); Veterans First, Fairfax, Virginia (W900KK-24-D-0015); Applied Training Solutions, Greensburg, Pennsylvania (W900KK-24-D-0009); Core Government Services Corporation, Purcellville, Virginia (W900KK-24-D-0010); Evocati Solutions JV, Valrico, Florida (W900KK-24-D-0012); Liberty Business Solutions, Ladson, South Carolina (W900KK-24-D-0013); and Nemean Trideum JV, Sierra Vista, Arizona (W900KK-24-D-0014), will compete for each order of the $975,000,000 order dependent contract for training service support. Bids were solicited via the internet with 18 received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 5, 2028. Army Contracting Command, Orlando, Florida, is the contracting activity. 

Utility Works, a JV, Virginia Beach, Virginia, is awarded a $65,000,000 firm-fixed-price modification to previously awarded contract N62470-21-D-0005 to increase the maximum dollar value for architect-engineer services for utility engineering, utility infrastructure management, utility operation and maintenance, and utility management services worldwide. This award brings the total cumulative value of the contract to $135,000,000. Work will be performed worldwide and is expected to be completed by February 2026. No funds will be obligated at time of award; funds will be obligated on individual task orders as they are awarded. Naval Facilities Engineering Systems Command Atlantic, Norfolk, Virginia, is the contracting activity.

Anchor Innovation Inc., Virginia Beach, Virginia (N00167-20-D-0001); Auxiliary Systems, Inc., Norfolk, Virginia (N00167-20-D-0002); Colonna’s Shipyard Inc., Norfolk, Virginia (N00167-20-D-0003); Fairlead Boatworks Inc., Newport News, Virginia (N00167-20-D-0004); Q.E.D. Systems Inc., Virginia Beach, Virginia (N00167-20-D-0006); and United States Marine, Inc., Gulfport, Mississippi (N00167-20-D-0007), were each awarded a period of performance extension to Sept. 30, 2026, to the previously awarded indefinite-delivery/indefinite-quantity, multiple award contract for watercraft industrial services and supplies in support of the Naval Surface Warfare Center Carderock Division Detachment Norfolk, Combatant Craft Division. The overall contract value for the contract is being increased by $35,000,000. This modification increases the total contract ceiling to $78,109,222. No funding will be obligated with this contract modification. The contractor shall perform in a wide variety of locations both within the continental United States (CONUS) and outside the continental United States (OCONUS). The expected work distribution by performance location includes Mid Atlantic US (60%); Northeast US (1%); US Gulf Coast (2%); Southwest US (15%); Northwest US (2%); Other/OCONUS (20%). OCONUS locations typically include, but are not limited to Bahrain, Kuwait, United Arab Emirates, Spain, Italy, Horn of Africa, Guam, Japan, Hawaii and Alaska. The Naval Surface Warfare Center Carderock Division, Detachment Norfolk is the contracting activity. (Awarded on Nov. 20, 2023)

Raytheon Co., Tewksbury, Massachusetts, is awarded a $20,760,562 cost-plus-fixed-fee contract for the Birdseye Yonder (BEYOND) effort. This contract provides for building two wideband passive sensor systems and conducting a multilateration demonstration with the sensor systems. Work will be performed in Tewksbury, Massachusetts (75%); El Segundo, California (12.5%); and Arlington, Virginia (12.5%). Work is expected to be completed in November 2026. The total cumulative value of this contract, including a 36-month base period and one 24-month option period which will run concurrently with the base period, is $20,760,562. Fiscal 2023 research, development, test and evaluation (Navy) funds in the amount of $4,640,000; and fiscal 2023 research, development, test and evaluation (defense) funds in the amount of $2,755,000, are obligated at time of award and will expire at the end of the current fiscal year. This contract was competitively procured under N00014-22-S-B001 entitled “Long Range Broad Agency Announcement (BAA) for Navy and Marine Corps Science and Technology.” Since proposals are received throughout the year under the Long-Range BAA, the number of proposals received in response to the solicitation is unknown. The Office of Naval Research, Arlington, Virginia, is the contracting activity (N00014-24-C-1111).

EMESEC Inc., Reston, Virginia, was awarded an estimated $83,088,429 firm-fixed-price task order under the General Services Administration Veterans Technology Services 2 Governmentwide Acquisition Contract for Defensive Cyber Realization, Integration, and Operational Support II Services. Work will be performed at Joint Base San Antonio-Lackland, Texas; and Scott Air Force Base, Illinois, and is expected to be completed by June 3, 2029. This contract was a competitive acquisition, and 10 offers were received. Fiscal 2024 operation and maintenance funds in the amount of $1,649,945 are being obligated at time of award. The Acquisition Management and Integration Center, Joint Base San Antonio-Lackland, Texas, is the contracting activity (FA8773-24-F-0010).

AT2 LLC, Severn, Maryland, has been awarded a $16,937,356 fixed-firm-price modification (P00041) to previously awarded contract FA4890-18-C-0008 for operation, maintenance, and support services of Primary Training Range. This modification provides for the exercise of an option for continued services of range threat, scoring, and feedback systems at Air Combat Command and Air Force Global Strike Command Primary Training Ranges at Dare County Range, North Carolina; Poinsett Range, South Carolina; Grand Bay Range, Georgia; Avon Park Range, Georgia; Snyder Range, Texas; Belle Fourche Range, South Dakota; Holloman Ranges, New Mexico; and Mountain Home Ranges, Idaho. The modification brings the total cumulative face value of the contract to $101,896,358. Work is expected to be completed by Dec. 31, 2024.  Fiscal year 2024 operation and maintenance funds in the amount of $8,969,292 are being obligated at time of award. Headquarters Air Combat Command, Joint Base Langley‐Eustis, Virginia, is the contracting activity.  

Manson Construction Co., Seattle, Washington, was awarded a $70,627,100 firm-fixed-price contract for Norfolk Harbor and channel dredging. Bids were solicited via the internet with three received. Work will be performed in Norfolk, Virginia, with an estimated completion date of Aug. 31, 2025. Fiscal 2023 civil construction and City of Virginia Beach funds in the amount of $70,627,100 were obligated at the time of the award. US Army Corps of Engineers, Norfolk, Virginia, is the contracting activity (W91236-24-C-5006). 

SecuriGence LLC, Leesburg, Virginia, has been awarded a $9,433,494 modification (P00025) to previously awarded task order HR001121F0006 for information technology multi-network support services. The modification brings the total cumulative face value of the task order to $284,783,750 from $275,350,255. Work will be performed in Arlington, Virginia, with an expected completion date of June 2024. No funds are being obligated at time of award. Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity. 

Total Computer Solutions Inc., Burke, Virginia, was awarded a $10,642,181 modification (P00004) to contract W31P4Q-23-F-D001 for programmatic support services for the Utility Helicopters Project Office. Work will be performed in Burke, Virginia, with an estimated completion date of Sept. 30, 2024. Fiscal 2023 other procurement, Army funds; fiscal 2024 operation and maintenance, Army funds; fiscal 2023 and 2024 Foreign Military Sales (Albania, Croatia, Jordan, Latvia, Lithuania, Mexico, Slovakia, Slovenia, Sweden, Taiwan, Thailand, and United Arab Emirates) funds; and fiscal 2023 research, development, test, and evaluation, Army funds in the amount of $10,642,181, were obligated at the time of the award. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.