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CONTRACT NEWS IN BRIEF

October 5, 2018 by

UNITED KINGDOM

LAND

02 Oct 18. Elbit Systems Ltd. (NASDAQ:ESLT and TASE: ESLT) (“Elbit Systems” or “the Company”) announced today that its subsidiary, Elbit Systems UK Ltd. (“Elbit Systems UK”), was awarded an initial contract of circa £10m (approximately US$13m) and a potential maximum value of £40m, from the UK Ministry of Defence (“MoD”) to provide the MORPHEUS Battlefield Management Application (“BMA”). The initial contract will be performed over a three-year period.  Under the contract Elbit Systems UK will provide the British Army with an operationally proven battle management application for both headquarters and tactical units, based on TORC2H™, Elbit Systems’ command and control platform that has been delivered to many customers worldwide, including to the Australian Defence Forces as part of its Land 200 Tranche 2 battle management system.

SEA

01 Oct 18. BAE Systems Technology Solutions and Services Inc., Rockville, Maryland, is awarded a $19,645,973 cost-plus-fixed-fee contract to provide logistics engineering and integration support of the U.S. Ohio-class and UK Vanguard-class Strategic Weapon System (SWS) platforms, including support of future concepts.  Work will be performed in Saint Mary’s, Georgia (47.9 percent); Mechanicsburg, Pennsylvania (30.9 percent); Rockville, Maryland (11.7 percent); Silverdale, Washington (3.2 percent); Portsmouth, Virginia (1.1 percent); Mount Dora, Florida (1.1 percent); New Market, Maryland (1.1 percent); Carlisle, Pennsylvania (1.0 percent); Mooresboro, North Carolina (1.0 percent); and Mesa, Arizona (1.0 percent), with an expected completion date of Sept. 30, 2019.  United Kingdom funds, in the amount of $3,466,833, are being obligated on this award.  Subject to the availability of funding, fiscal 2019 operations and maintenance (Navy) contract funds in the amount of $15,779,579; and fiscal 2019 research development test and evaluation (Navy) contract funds in the amount of $399,561 will be obligated.  No funds will expire at the end of the current fiscal year.  This contract was a sole-source acquisition pursuant to 10 U.S. Code 2304(c)(1)&(4).  Strategic Systems Programs, Washington, District of Columbia, is the contracting activity (N-00030-19-C-0007).

28 Sep 18. Lockheed Martin Space, Sunnyvale, California, is awarded $333,299,488 for cost-plus-incentive-fee, cost-plus-fixed-fee modification P00014 to a previously awarded contract (N00030-17-C-0100) for new procurement of Trident II (D5) Deployed Systems Support.  The work will be performed in Cape Canaveral, Florida (29.06 percent); Sunnyvale, California (26.58 percent); Kings Bay, Georgia (13.8 percent); Bangor, Washington (13.64 percent); Denver, Colorado (5.14 percent); Titusville, Florida (3.48 percent); Magna, Utah (3.08 percent); Orlando, Florida (1.54 percent); and other various locations (less than 1.00 percent each; 3.68 percent total) with an estimated completion date of Feb. 4, 2020.  Subject to availability of funding, fiscal 2019 operations and maintenance (Navy) funds in the amount of $315,899,488 and United Kingdom funds in the amount of $17,400,000 will be obligated.  Funds in the amount of $315,899,488 will expire at the end of fiscal 2019.  Strategic Systems Programs, Washington, District of Columbia, is the contracting activity.

28 Sep 18. Lockheed Martin Space, Sunnyvale, California, is awarded $103,919,058 for fixed-price-incentive, cost-plus-incentive-fee, and cost-plus-fixed-fee modification PZ0001 to a previously awarded un-priced letter contract (N00030-18-C-0100) for new procurement of Trident II (D5) missile production, D5 Life Extension production, and D5 Deployed Systems Support.  The work will be performed in Kings Bay, Georgia (43.59 percent); Bangor, Washington (42.44 percent); Sunnyvale, California (4.52 percent); Cape Canaveral, Florida (3.97 percent); and other various locations (less than 1.00 percent each; 5.48 percent total) with an expected completion date of Sept. 30, 2023.  Fiscal 2018 weapons procurement (Navy) funds in the amount of $33,789,468, United Kingdom funds in the amount of $3,746,000, and fiscal 2018 other procurement (Navy) funds in the amount of $351,680 are being obligated on this award, none of which will expire at the end of the current fiscal year. Subject to availability of funding, fiscal 2019 operations and maintenance (Navy) funds in the amount of $66,031,910 will be obligated on this award.  Funds in the amount of $66,031,910 will expire at the end of fiscal 2019.  Strategic Systems Programs, Washington, District of Columbia, is the contracting activity.

EUROPE

LAND

03 Oct 18. The Finnish Minister of Defence Jussi Niinistö has authorized the Finnish Defence Forces Logistics Command to enter into a Framework Agreement with Bittium Wireless Ltd on the purchase of Bittium Tough Comnode™ terminals and related accessories. The Framework Agreement would cover the years 2018-2020. The maximum value of the purchase authorization for the Framework Agreement would be EUR 8.3m (excl. VAT). Based on the Framework Agreement, the Finnish Defence Forces would issue separate purchase orders in several batches during the validity of the Framework Agreement. The Framework Agreement will not change Bittium’s financial outlook for the year 2018, published on August 8, 2018 in Bittium’s Half Year Financial Report January-June 2018. Bittium Tough Comnode™ will fulfil the data transfer needs of the Finnish Defence Forces’ mobile troops by functioning for example as a VoIP phone (Voice over IP), an IP router (Internet Protocol), and an SHDSL repeater (Symmetrical High-speed Digital Subscriber Line). The terminals will be used by all three military branches. Bittium Tough Comnode™ is rugged, easy to install in different environments and is also portable by soldiers on the battlefield. The terminal is compatible with the software defined radio based Bittium Tactical Wireless IP Network™ (TAC WIN) system, which is meant for broadband tactical communications and is used by the Finnish Defence Forces. The terminal offers diverse connectivity options also to third-party equipment and systems. Bittium Tough Comnode™ also enables using legacy Combat Net Radios (CNR) as part of the IP-based tactical communication system (Radio over IP, RoIP).

04 Oct 18. Cohort subsidiary EID has been awarded a contract worth €4.8m to provide communication equipment for the Portuguese Army. Under the terms of the contract, EID will supply communication equipment for 139 VAMTEC 4×4 Light Armoured Tactical Vehicles over the next two years. The contract follows an International Competitive Tender issued by the NATO Support and Procurement Agency (NSPA) on behalf of the Portuguese Ministry of Defence. The competition was won by the Spanish vehicle manufacturer URO Vehiculos Especiales S.A., with EID as subcontractor.

01 Oct 18. Lockheed Martin, Orlando, Florida, was awarded a $631,757,949 fixed-price-incentive Foreign Military Sales (Netherlands and Japan) contract to procure a variety of Hellfire II missile variants in containers. One bid was solicited with one bid received. Work will be performed in Orlando, Florida, with an estimated completion date of Sept. 30, 2021. Fiscal 2017 and 2018 foreign military sales; and other procurement, Army funds in the combined amount of $631,757,949 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-15-C-0130).

AIR

02 Oct 18. The U.S. Navy has awarded Northrop Grumman Corporation (NYSE: NOC) a $171m contract for Lot 7 full rate production (FRP) of the AGM-88E Advanced Anti-Radiation Guided Missile (AARGM). The contract will deliver advanced capability to U.S. warfighters as well as the Italian Air Force and Royal Australian Air Force to counter the accelerating proliferation of surface-to-air threats. AARGM is a supersonic, air-launched tactical missile system, upgrading legacy AGM-88 HARM systems with capability to perform destruction of enemy air defense missions. AARGM is the most advanced system for pilots, with in-cockpit, real-time electronic order of battle situational awareness against today’s modern surface-to-air threats. It is able to rapidly engage traditional and non-traditional advanced land- and sea-based air-defense threats, as well as striking, time-sensitive targets.

USA

LAND

28 Sep 18. BAE Systems Land & Armaments L.P., York, Pennsylvania, was awarded a $215,797,886 modification (P00011) to contract W56HZV-17-C-0001 for production of the M109A7 Self-Propelled Howitzer and the M992A3 Carrier Ammunition Tracked vehicles. Work will be performed in York, Pennsylvania, with an estimated completion date of Jan. 29, 2021. Fiscal 2018 other procurement, Army funds in the amount of $215,797,886 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity.

01 Oct 18. FLIR Systems, Inc. (NASDAQ: FLIR) announced today it has received an award from the United States Department of Defense (DOD) Joint Program Executive Office for Chemical Biological Radiological and Nuclear Defense (JPEO-CBRND) in support of the Multi-Phase Chemical Agent Detector (MPCAD) program. The Other Transaction Authority Agreement (OTA) is valued at $28.7m, with execution extending through mid-2022. A modified version of the FLIR Griffin™ G510 will form the basis of FLIR’s MPCAD solution. The Griffin G510 is a portable gas chromatograph mass spectrometer (GC-MS) system currently used by domestic and international response teams to perform real-time chemical threat confirmation in the field. This development will provide the ability to identify chemicals at low levels in aerosol, gas, liquid, and solid phases of matter. It will provide the warfighter with field confirmation capabilities and better enable the Joint Forces to combat and interdict chemical weapons of mass destruction (WMD). Work under the contract is expected to be performed at FLIR’s facility in West Lafayette, Indiana, US. (Source: BUSINESS WIRE)

02 Oct 18. US Department of Defense (DoD) selects FREQUENTIS technology to support Air Force and other DoD agencies. DoD has selected Frequentis’ remote virtual tower (RVT) technology. The project will include two fixed-base RVT systems and two deployable systems for use by the Air Force and other DoD agencies. In the civil domain, RVT solutions have already been tested and put into operation at airports around the world, safely managing instrument flight rules (IFR) and visual flight rules (VFR) operations from remote locations and there is even greater potential to add value in military scenarios. By replacing the “out-of-the-window” view with a visualization system at a remote site, situational awareness is not only increased with enhanced visibility, but military air traffic control (milATC) staff are no longer in harm’s way as they can conduct their duties safely from a remote location.

01 Oct 18. Lockheed Martin Corp., Grand Prairie, Texas, was awarded a $12,500,000 cost-plus-fixed-fee contract for development, test, and purchase of Counter Unmanned Aerial System solutions. One bid was solicited with one bid received. Work locations and funding will be determined with each order, with an estimated completion date of Sept. 30, 2023. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911QX-18-D-0008).

01 Oct 18. Lightforce USA Inc.,* Orofina, Idaho, is awarded a $15,760,499 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the production of Squad-Variable Powered Scopes (S-VPS) in support of U.S. Special Operations Command.  This procurement is for the S-VPS, spare parts and training. The S-VPS is a low-profile, wide-field-of-view, passive scope for near-range engagements out to and beyond the maximum effective range of the weapon system, for small arms employed by special operations forces. This contract includes options which, if exercised, would bring the cumulative value of the contract to $21,172,435. Work will be performed in Orofino, Idaho, and is expected to be completed by September 2023. Fiscal 2018 procurement (Defense-wide) funding in the amount of $1,512,000 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with five offers received. The Naval Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity (N00164-19-D-JQ31).

01 Oct 18. The U.S. Army has awarded Northrop Grumman Corporation (NYSE: NOC) a $289m contract to continue system design and development toward fielding of the Integrated Air and Missile Defense (IAMD) Battle Command System (IBCS).

SEA

01 Oct 18. US Navy awards $9bn MYP contracts to buy ten DDG-51-class ships. The US Navy has awarded two contracts with a total value of approximately $9bn for the procurement of ten DDG-51 Arleigh Burke-class destroyers. The DDG-51 fiscal year (FY) 2018 to FY 2022 multiyear procurement (MYP) contracts have been awarded to General Dynamics (GD) Bath Iron Works (BIW) and Huntington Ingalls Industries (HII). Under the multiyear procurement awards, GD has secured a nearly $3.9bn fixed-price incentive firm target (FPIF) contract for the designing and development of four DDG-51-class vessels between FY 2019 and FY 2022. The FPIF award to HII is valued at approximately $5.1bn and will involve the design and construction of a total of six destroyers within the entire contract period. Depending on a stable and mature design, the ten ships are being acquired by the US Navy in a Flight III configuration. The Arleigh Burke-class vessels will be equipped with critical integrated air and missile defence capability with the installation of the AN/SPY6(V)(1) air and missile defence radar. (Source: naval-technology.com)

28 Sep 18. Lockheed Martin Rotary and Mission Systems, Manassas, Virginia, is awarded a $54,551,523 cost-plus-incentive-fee, fixed-price-incentive, and cost-only modification to a previously awarded contract (N00024-13-C-5225) for production of the Navy’s AN/SQQ-89A(V)15 Surface Ship Undersea Warfare System.  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 action includes options which, if exercised, would bring the cumulative value of this contract action to $168,051,549. Work will be performed in Lemont Furnace, Pennsylvania (41 percent); Clearwater, Florida (24 percent); Syracuse, New York (13 percent); Manassas, Virginia (12 percent); Hauppauge, New York (5 percent); Owego, New York (4 percent); and Tewksbury, Massachusetts (1 percent), and is expected to be completed by November 2020. Fiscal 2016, 2017 and 2018 other procurement (Navy), 2018 shipbuilding and conversion (Navy); fiscal 2016 shipbuilding and conversion (Navy), and fiscal 2017 research, development, test and evaluation (Navy) funding the amount of $54,551,523 will be obligated at the time of award and $2,242,839 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

28 Sep 18. Raytheon Missile Systems, Tucson, Arizona, is awarded a $395,549,739 modification to previously awarded contract (N00024-17-C-5409) for procurement of fiscal 2017 and 2018 Standard Missile-6 (SM-6) full rate production requirements and spares. This contract modification includes options which, if exercised, would bring the cumulative value of this contract to $579,718,607. Work will be performed in East Camden, Arkansas (31 percent); Tucson, Arizona (19 percent); Wolverhampton, United Kingdom (15 percent); Andover, Massachusetts (7 percent); Middletown, Ohio (4 percent); San Jose, California (3 percent); Anniston, Alabama (2 percent); Dallas, Texas (2 percent); Huntsville, Alabama (2 percent); Clarkston, Georgia (1 percent); Middletown, Connecticut (1 percent); Amesbury, Massachusetts (1 percent); Anaheim, California (1 percent); Minneapolis, Minnesota (1 percent); Orangeburg, New York (1 percent); San Diego, California (1 percent); Warrington, Pennsylvania (1 percent); all other locations less than .5 percent (7 percent), and is expected to be completed by September 2022. Fiscal 2018 and 2017 weapons procurement (Navy), funding in the amount of $484,397,929 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, District of Columbia, is the contracting activity.

AIR

04 Oct 18. NGC awarded $17.5m Contract for 5th Generation Upgrade of E-8C Joint STARS Central Computers. Northrop Grumman Corporation (NYSE: NOC) has been awarded a $17.5m contract for a fifth generation upgrade to the central computers on 16 aircraft in the E-8C Joint Surveillance Target Attack Radar System (Joint STARS) fleet. This effort serves as a low-risk pathfinder for the U.S. Air Force to continue to enhance fleet capability while it develops the follow-on Advanced Battle Management System. (Source: ASD Network)

TECHNOLOGY

01 Oct 18. The US DoD Selects BAE to Help Develop and Deliver Next Generation Mission Technologies. The U.S. Department of Defense (DoD) has selected BAE Systems to compete for future research and development (R&D) task orders awarded under a nine-year, indefinite delivery/indefinite quantity (IDIQ) contract. The contract provides fast, flexible, low-cost solutions across technical disciplines to meet the current and future technology needs of the U.S. military. BAE Systems is one of 15 companies selected by the Defense Technical Information Center to compete for future R&D and support task orders expected to exceed $15m. These task orders will be awarded by the Air Force Installation Contract Agency/KD Offutt AFB, Nebraska and support the DoD Information Analysis Center Program Management Office. The ceiling value for all future work awarded under the IDIQ is $28bn. BAE Systems delivers a broad range of solutions and services enabling militaries and governments to successfully carryout their missions. The company provides large-scale systems engineering, integration, and sustainment services across air, land, sea, space, and cyber domains. BAE Systems takes pride in its support of national security and those who serve. (Source: ASD Network)

28 Sep 18. The CSRA business of General Dynamics’ IT services division has won a key contract with the Navy to help the branch accelerate its adoption and migration to commercial cloud computing technologies. This five-year blanket purchase agreement has a $95.8m ceiling value over one year followed by four one-year options. The pact aims to support a “multi-vendor, multi-cloud ecosystem” in line with the Defense Department’s overall commercial cloud push, according to a Wednesday release from the Navy’s program executive office for enterprise information systems. Three other bidders offered quotations for the BPA, the Defense Department said in its Wednesday awards digest. Cloud services listed in that award notice include Amazon Web Services and Microsoft Azure, but additional team members and cloud service providers can join the team led by GDIT, which acquired CSRA in April. GDIT will essentially act as the commercial cloud broker for the Navy as the branch pushes to transfer, host, operate and sustain IT services in cloud environments. In its release, PEO EIS said the pact aligns with the Navy’s “Fit-for-Purpose” approach to acquisitions of commercial cloud tools. (Source: Defense Systems)

27 Sep 18. Northrop Grumman Awarded (Maximum) $500m HELIOS Contract by the Defense Intelligence Agency. Northrop Grumman Corporation (NYSE: NOC) was one of nine companies that the DIA selected to provide critical support for its Directorate for Science and Technology (DIA/ST). The agency made the award under its HELIOS Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. Northrop Grumman will provide the agency with innovative capabilities for its science and technology missions. HELIOS is divided into two major technical areas. The aim of these areas is to enhance intelligence; provide strategic warning; and inform research and development, acquisition and operational activities. (Source: Satnews)

REST OF THE WORLD

LAND

01 Oct 18. US approves Bahraini ATACMS, GMLRS sale. The US State Department has approved the sale of Guided Multiple Launch Rocket System (GMLRS) and Army Tactical Missile System (ATACMS) munitions to Bahrain, the Defense Security Cooperation Agency (DSCA) announced on 28 September. The GMLRS is the guided version of the 270 mm artillery rocket used with M270 MLRS launchers, nine of which Bahrain received in 1992. They are launched from six-round pods, two of which can be carried by an M270. The ATACMS is a tactical ballistic missile with a range of 300km that is also launched by the M270. The DSCA said Bahrain has requested 120 M31 GMLRS pods and 110 M57 ATACMS missiles with an estimated cost of USD300m. (Source: IHS Jane’s)

SEA

28 Sep 18. ECA Group has delivered to an Asian Navy several Mine Identification and Destruction Systems (MIDS) combining K-STER I identification ROV (Remotely Operated Vehicles) and K-STER C neutralization ROVs as well as equipment for automatic launch and recovery from naval surface drone USV (Unmanned Surface Vehicle) in a global solution which can be operated from shore or a distant mothership.

02 Oct 18. Ultra Electronics Maritime Systems (Ultra) has today announced a significant contract award from General Dynamics Mission Systems–Canada.  This contract will see Ultra supply the new in-line transmitter and receiver array as part of General Dynamics’ successful win of the Underwater Warfare Suite Upgrade (UWSU) project for the Royal Canadian Navy (RCN). Combined with the recently completed Halifax Class Modernization (HCM) program, the UWSU project will enable a step-change in underwater search capability that will see Canada’s Halifax Class Frigates well-equipped for anti-submarine warfare (ASW) operations long into the future.  Ultra’s contribution to the UWSU project will secure high-value jobs in Atlantic Canada and will strengthen Canada’s leadership role in anti-submarine warfare. Ultra’s transmitter solution for UWSU is a made-in-Canada solution originally conceived at Defence Research and Development Canada (DRDC) Atlantic Research Laboratory.  The solution enables sound energy to be steered only in the direction of interest, and with the transmitter and receiver combined in-line in a single towed array, the requirement for a second independent tow for the transmitter is eliminated – allowing the single reelable array to be installed on the Halifax Class with minimal modification.  The single-tow, in-line transmitter also significantly increases the ship’s operational envelope because of the transmitter’s ability to operate at full power in shallow waters.  Ultra’s array solution for UWSU is second-generation technology that has been operationally proven with international customers.

AIR

04 Oct 18. AeroVironment, Inc. (NASDAQ: AVAV) today announced the United States Air Force awarded the company a $13m indefinite delivery/indefinite quantity (ID/IQ) contract on Sept. 30, 2018 for RQ-11B Raven® small unmanned aircraft systems (UAS) to support Latin American and Caribbean nations.  United States Government fiscal 2018 operations and maintenance funds of $2,800,000 were committed at the time of the award.  The work is expected to be completed by Sept. 28, 2023. The Raven hand-launched small UAS, the most prolific military drone in the world, will be deployed in the U.S. Southern Command Area of Responsibility, which includes Central America, South America and the Caribbean.

02 Oct 18. Colombia orders two Dauphin helos for naval use. Colombia has acquired two Airbus AS365N3 Dauphin helicopters to be used by the country’s navy. The second-hand aircraft, which were built in 2004, will be delivered in December for use aboard the Colombian Navy’s 20 de Julio-class offshore patrol vessels. Plans for the aircraft to be operated from the Almirante Padilla-class frigates have also had to be temporarily shelved after it was found that the ships’ hangars are too small. A study to modify the hangars is under way. (Source: IHS Jane’s)

01 Oct 18. The Commonwealth government has announced the signing of the E-7A Wedgetail Head Agreement with Boeing Defence Australia (BDA). The agreement integrates $1.5bn in current contracts into a flexible overarching framework for this significant capability that supports 600 jobs across Australia. The Boeing 737 airborne early warning and control (AEW&C) is a state-of-the-art system providing powerful airborne surveillance, communications and battle management. (Source: Defence Connect)

TECHNOLOGY

25 Sep 18. Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) has received a $4.2m contract award for the production of approximately 50 specialized systems in support of a Command, Control, Communications, Computing, Combat, Intelligence, Surveillance and Reconnaissance (C5ISR) program for a National Security related customer. Kratos Modular Systems Division, which received this contract award, is an industry leader in providing specialized systems in support of unmanned aerial drone system, missile defense, radar, satellite communications and other C5ISR platforms and programs.  Work under this recent contract award will be performed in a secure Kratos manufacturing facility.  Due to customer related, competitive and other considerations, no additional information will be provided related to this recent contract award. (Source: Satnews)

 

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