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CONTRACT NEWS IN BRIEF

June 14, 2019 by

EUROPE

LAND

13 June 19. Netherlands orders small arms from FN Herstal. The Dutch Defence Materiel Organisation signed a framework contract with FN Herstal in Belgium on 11 June for M2 QCB 12.7 mm, MAG 7.62 mm, and Minimi 5.56 mm machine guns, the Dutch Ministry of Defence (MoD) announced on its website on 12 June. The ministry said the Belgian company would supply it with weapons, spare parts and components, and ancillaries over the next 15 years but did not reveal figures or costs. The Dutch MoD said the contract would give it predictability in the supply of these weapons and spare parts.(Source: IHS Jane’s)

12 June 19. Harris Corporation (NYSE:HRS) has been awarded a $51m Foreign Military Sales delivery order to provide Falcon III® radios to a Central European nation – delivering advanced narrowband and wideband networking capabilities and offering greater interoperability with U.S. and NATO allies for coalition operations. Under the award, Harris will provide Falcon III® AN/PRC-158, AN/PRC-160, AN/PRC-152A and AN/PRC-117G manpack and handheld radios as part of the country’s modernization program. Key radios features include:

  • AN/PRC-158 multi-channel manpack: features a two-channel, software-defined architecture with integrated cross-banding between waveforms, providing new advanced capabilities while maintaining backward interoperability with legacy radios.
  • AN/PRC-160 wideband HF/VHF manpack radio: the only stand-alone solution that, in the absence of satellite communications, provides long-range communications at data speeds up to 10 times greater than any existing high frequency radio.
  • AN/PRC-152A multiband handheld: a wideband networking handheld radio that provides simultaneous voice, video and data in a small form-factor, with mobile ad-hoc networking capabilities. Harris has delivered more than 45,000 AN/PRC-152A radios worldwide.

AN/PRC-117G manpack: a combat proven, software-defined radio that is easily upgradeable with new waveforms, such as MUOS; also is NINE Suite B encrypted, allowing users to securely and easily interoperate with U.S., NATO and regional partners. More than 50,000 AN/PRC-117G radios have been delivered to customers around the world. (Source: BUSINESS WIRE)

12 June 19. Rheinmetall books order for second lot of trucks: Bundeswehr to buy 252 unprotected transport vehicles under framework contract. The German Bundeswehr has awarded Rheinmetall an order for 252 unprotected transport vehicles with payloads of five and fifteen tonnes. This order falls under the framework agreement concluded in 2017 for more than 2,200 state-of-the-art military trucks. The order value of the 252 trucks just ordered comes to around €92m, including value added tax. Before the end of 2019, Rheinmetall MAN Military Vehicles GmbH (RMMV) will build and deliver the vehicles, which include a total of 161 5-tonne trucks and 91 15-tonne trucks. Production of the lot just ordered will commence directly after completion of the first lot of vehicles, which are due to be delivered during the next few months, right on schedule. Encompassing a total of 2,271 unprotected transport vehicles from RMMV’s HX family, the framework agreement concluded on 5 July 2017 with the Federal Office for Bundeswehr Equipment, Information Technology and In-service Support (BAAINBw) is worth around €900m (without VAT), including special tools and training services. As a first step, an order was issued for an initial lot of 558 vehicles. In undertaking this large-scale project, the Düsseldorf-based Group for mobility and security solutions is making a major contribution to modernizing the Bundeswehr’s fleet of trucks, which numbers in the thousands. Consisting primarily of components made in Germany, e.g. the engines, axles, transmissions and build-ons, the vehicles will be assembled at the RMMV plant in Vienna. Particularly when it comes to multinational operations, the widespread global presence of RMMV vehicles results in major advantages with respect to interoperability and logistics. Among others, current users include the armed forces of the United Kingdom, Australia, New Zealand and Denmark. Norway and Sweden have also placed substantial orders for trucks made by RMMV.

AIR

13 June 19. NSPA, OCCAR revise MMF agreement. The NATO Support and Procurement Agency (NSPA) and OCCAR have revised their cooperation agreement for the Multinational MRTT Fleet (MMF) programme. Originally signed in 2014, the programme aims to acquire a pool of Multi Role Tanker Transport(MRTT) aircraft available to participating nations. Due to more nations joining the programme NSPA and OCCAR have revised their agreement so that the NSPA will acquire eight MRTT aircraft and carry out the mission and tasks stipulated by its governing body; while the OCCAR executive administration will act as the contract-executing agent for the MMF acquisition contract with Airbus. The contract includes three optional aircraft to accommodate future growth of the programme up to eleven MRTTs. (Source: Shephard)

14 June 19. The French Defence Procurement Agency DGA has signed an order to purchase an additional Airbus H225M which will be operated by the French Air Force. The aircraft will be delivered in a configuration that allows it to be interoperable with the existing fleet of 10 H225Ms in the French Air Force and in particular it will be capable of inflight refuelling, an essential operational advantage that this helicopter offers. The aircraft will be based in Cazaux and will be used for Special Forces and Search and Rescue missions.

14 June 19. Airbus SE* (stock exchange symbol: AIR) has signed the A400M contract amendment with OCCAR, the Bonn, Germany-based organisation for joint armament cooperation, which manages the multinational programme on behalf of the Launch Customer Nations Germany, France, United Kingdom, Spain, Turkey, Belgium and Luxembourg. This contract signature concludes the discussions between both sides on the Global Rebaselining of the A400M programme, which had been initiated in March 2017.   (Full story see: NEWS IN BRIEF – EUROPE, Airbus signed A400M contract amendment)

14 June 19. Airbus Helicopters and DGA select Thales’s new FlytX avionics suite for latest-generation helicopter programmes

  • Airbus Helicopters and the French defence procurement agency (DGA) have selected the FlytX avionics suite for their future H160M Joint Light Helicopter. Airbus Helicopters and Thales are also pursuing studies to potentially integrate FlytX on the future Tiger Mk3.
  • Using the latest display technologies to make flying easier, FlytX features a set of naturally intuitive, direct-interaction touchscreen interfaces.
  • Workload is reduced, enabling pilots to focus on their missions and ensure optimal safety.

The FlytX avionics suite will equip the future H160M Guépard, the military version of the H160 from Airbus Helicopters. FlytX is based on the Avionics 2020 concept unveiled at the 2013 Paris Air Show and comprises an intuitive touchscreen interface designed by pilots for pilots.

USA

LAND

11 June 19. Cubic wins USAF contract to develop SFF radio prototype. Cubic Mission Solutions (CMS) has received an order from the US Air Force (USAF) to develop and demonstrate a Small Form Factor (SFF) Radio prototype for the Data Link Enterprise (DLE). The system comprises one ground and one air component to enable ground-to-air and air-to-ground real-time communications. Cubic’s solution is a lightweight, airborne and ground radio system. It is capable of delivering SFF capability in a compact tactical radio prototype. It will offer several standard waveforms and an internally developed, protected waveform known as ‘Boomslang’. The architecture implemented for the company’s SFF technical approach is designed to optimise the functionality and performance of the system. In addition, the architecture helps minimise the system’s size, weight, power and cost (SWaP-C) for both the ground and airborne systems. The solution is modular, scalable and affordable featuring plug and play, open standard interfaces. CMS is a subsidiary of Cubic, a US-based provider of systems and services to the transportation and defence markets worldwide. (Source: airforce-technology.com)

13 June 19. Harris Corporation Awarded a Second LRIP Order on US Army’s HMS Manpack IDIQ Contract. Harris Corporation (NYSE:HRS) has been awarded a second low-rate initial production (LRIP) order by the U.S. Army under the HMS (Handheld, Manpack & Small Form-Fit) IDIQ contract to bring flexible and highly capable AN/PRC-158 multi-channel radios to the battlefield.

The Harris AN/PRC-158 radio features a two-channel, software-defined architecture with integrated cross-banding between waveforms, including TSM, SRW, SINCGARS, SATCOM and others, providing new advanced capabilities while maintaining backward interoperability with legacy radios. The software-defined architecture enables flexibility to respond to new and emerging requirements and allows easy porting of new waveforms. The radio is capable of simultaneously handling classified and unclassified data. This is the second LRIP for Harris after an initial successful LRIP on this contract to supply HMS Manpack radios and will be followed by Operational Testing as part of the fielding process. The IDIQ contract includes a five-year base and an additional five-year option with a ceiling of $12.7bn. The Army expects to purchase approximately 65,000 HMS Manpack radios under the IDIQ.

07 June 19. Northrop Grumman Systems Corp., Baltimore, Maryland, is awarded a $958,049,562 firm-fixed-price contract for the procurement of 30 full-rate production Ground/Air Task Oriented Radar units under the portfolio management of Program Executive Officer Land Systems, Quantico, Virginia.  This procurement also includes spares parts and retrofit kits.  Work will be performed in Linthicum, Maryland (37 percent); East Syracuse, New York (28 percent); Stafford Springs, Connecticut (7 percent); Tulsa, Oklahoma (6 percent); Syracuse, New York (4 percent); Valencia, California (3 percent); San Diego, California (3 percent); Richardson, Texas (3 percent); Farmingdale, New York (2 percent); St. Paul, Minnesota (2 percent); Gilbert, Arizona (1 percent); Phoenix, Arizona (1 percent); Lowell, Massachusetts (1 percent); Littleton, Colorado (1 percent); and Durham, North Carolina (1 percent), and is expected to be complete by Jan. 13, 2025.  Fiscal 2019 procurement funds (Marine Corps) in the amount of $194,748,327 will be obligated at the time of award and will not expire at the end of the current fiscal year.  This contract award was not competitively procured 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).

13 June 19. Oshkosh Defense LLC, Oshkosh, Wisconsin, was awarded a $17,335,100 hybrid (cost-plus-fixed-fee and firm-fixed-price) contract for re-baselining the current production configuration and the procurement of capability enhancements to Government Furnished M1070A1 Heavy Equipment Transporters. One bid was solicited with one received. Work will be performed in Oshkosh, Wisconsin, with an estimated completion date of July 31, 2020. Fiscal 2019 other procurement, Army funds in the amount of $17,355,100 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-15-D-0031).

10 June 19. Taylor Defense Products LLC, Louisville, Mississippi, is awarded a ceiling $84,000,000 indefinite-delivery/indefinite-quantity contract for the Service Life Extension Program (SLEP) for up to a maximum of 145 all-terrain cranes. Work will be performed in Louisville, Mississippi, and is expected to be complete by June 2029. Fiscal 2019 procurement (Marine Corps) funds in the amount of $9,719,457 will be obligated on the first delivery order immediately following contract award and funds will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with three offers received. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-19-D-5018).

SEA

13 June 19. HII awarded USD687m maintenance contract for Ford. The US Navy (USN) awarded Huntington Ingalls Industries’ Virginia-based Newport News Shipbuilding a cost-plus-fixed-fee, indefinite delivery/indefinite quantity contract worth up to USD687 million for early service life period work on aircraft carrier USS Gerald R. Ford (CVN 78). The contract is to support ship repair and modernisation during continuous incremental availabilities, planned incremental availabilities, full-ship shock trials, and continuous maintenance and emergent maintenance during the ship’s early service life period. The early service life maintenance requirements addressed in the contract have been planned as part of the life-cycle support of CVN 78, USN officials said, adding that the recent maintenance extension had no effect on the contract award. (Source: IHS Jane’s)

12 June 19. Saab receives Sea Giraffe MMR order. Saab will supply additional Sea Giraffe Multi Mode Radars (MMRs) for the US Coast Guard under an order from the US Navy announced on 11 June. The order exercises an option on an existing contract which was initially awarded in 2017. It includes multiple line item options for additional Sea Giraffe MMR systems to equip the US Coast Guard’s offshore patrol cutters. The initial contract covers manufacturing, inspection, testing and delivery of the radars. Deliveries will take place between 2020 and 2021. (Source: Shephard)

AIR

12 June 19. The Boeing Co., Ridley Park, Pennsylvania, was awarded a $194,224,723 cost-plus-fixed-fee type delivery order modification (P00001) under a current contract (W91215-16-G-0001) to procure six renew-build and one new-build MH-47G rotary wing aircraft. This action is required to sustain U.S. Special Operations Forces (SOF) heavy assault, rotary wing aircraft and to mitigate the impact of the MH-47G aircraft availability in light of increased SOF operational demands. Fiscal 2019 procurement, defense-wide appropriations in the amount of $77,360,723; and fiscal 2019 aircraft procurement, Army funds in the amount of $116,864,000 were obligated at the time of award. Contract funds will not expire at the end of the current fiscal year. The majority of the work will be performed in Ridley Park, Pennsylvania. U.S. Special Operations Command headquarters, Tampa, Florida is the contracting activity.

10 June 19. The US Navy has awarded a contract to Kratos Defense & Security Solutions for lot three of low-rate initial production (LRIP III) for the BQM-177A subsonic aerial target (SSAT). The $25.41m firm-fixed-price contract will see the procurement of 34 BQM-177A Subsonic Aerial Targets and technical data. The Naval Air Systems Command is the contracting activity. Kratos will conduct the contract work in Sacramento, California. Completion of the work is expected to take place in March 2021. The navy will obligate the contract funds at the time of the award. The BQM-177A is the navy’s next-generation SSAT set to eventually replace the existing BQM-74E aerial target. It achieved the IOC in February. It is designed to simulate subsonic anti-cruise missile threats for fleet training and weapon system testing and evaluation. Deliveries from LRIP I started in the early second half of last year. (Source: naval-technology.com)

12 June 19. LinQuest Corporation received a $562m award from the U.S. Air Force Space and Missile Systems Center (SMC) to provide architecting and full life-cycle systems engineering, integration, and solutions support to the military satellite communications enterprise. The portfolio of SMC programs supported by MSEIT includes all satellites, terminals, and networks for worldwide tactical, strategic, and wideband military communications. (Source: BUSINESS WIRE)

07 June 19. Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $1,808,545,655 cost-plus-incentive-fee, cost-plus-award-fee, cost-plus-fixed-fee contract for continued design maturation and development of Block 4 capabilities in support of the F-35 Lightning II Phase 2.3 Pre-Modernization for the Air Force, Navy, Marine Corps; and non-U.S. Department of Defense (DoD) participants.  Work will be performed in Fort Worth, Texas, and is expected to be completed in August 2026.  Fiscal 2019 research, development, test and evaluation (Air Force, Navy, and Marine Corps); and non-U.S. DoD participant funds in the amount of $98,998,910 will be obligated at time of award, none of which will expire at the end of the current fiscal year.  This contract combines purchases for the Air Force ($732,460,990; 40.50 percent); Navy ($371,475,278; 20.54 percent), Marine Corps ($345,974,784; 19.13 percent) and non-U.S. DoD participants ($358,634,603; 19.83 percent).  This contract was not competitive procured pursuant to U.S. Code 2304(c)(1).  The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-19-C-0010).

10 June 19. Sikorsky Aircraft Corp., Stratford, Connecticut, a Lockheed Martin Co., is awarded $542,023,016 for firm-fixed price modification P00074 to a previously awarded fixed-price-incentive-firm contract (N00019-14-C-0050) in support of the Presidential Helicopter Replacement Program (VH-92A). This modification exercises an option for the procurement of six Low Rate Initial Production Lot 1 Presidential Helicopters, as well as interim contractor support, initial spares, support equipment, and system parts replenishment. Work will be performed in Stratford, Connecticut (50 percent); Coatesville, Pennsylvania (36 percent); Owego, New York (10 percent); Patuxent River, Maryland (3 percent); and Quantico, Virginia (1 percent), and is expected to be completed in April 2022. Fiscal 2019 aircraft procurement (Navy) funds in the amount of $542,023,016 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

REST OF THE WORLD

LAND

10 June 19. Boeing Defence Australia has recently signed three-year contract extensions valued at more than $62m to operate, maintain and enhance the Defence High Frequency Communications System (DHFCS). DHFCS provides the Australian Defence Force with a world-leading, software-enabled, long-range high frequency communications system and delivers critical back-up in the event of a satellite-denied or -degraded environment. Boeing’s capability in managing the system has resulted in extensions to the support services contract (SSC) and network operations support contract (NOSC). Also included in the SSC is back-end engineering services and system support for the NOSC, which provides the on-site operation and maintenance of the fixed network high frequency stations in Exmouth, Darwin, Townsville and Riverina, and Network Management Facilities in Canberra. (Source: Defence Connect)

SEA

13 June 19. UAE reportedly finalises Gowind corvette order. The United Arab Emirates (UAE) has finalised a contract for two Gowind corvettes that will be built by France’s Naval Group, the French newspaper La Tribune reported corroborating sources as saying on 7 June. It said the contract was signed “very discreetly” on 25 March and the ships would be equipped with the SETIS combat management system, MBDA Exocet anti-ship missiles, and Raytheon Evolved Sea Sparrow Missiles (ESSMs) for air defence instead of the MBDA VL MICA fitted to Egypt’s Gowinds, the sources said. The UAE’s acquisition of two Gowinds was originally announced during a visit to Abu Dhabi by French President Emmanuel Macron in November 2017. (Source: IHS Jane’s)

AIR

11 June 19. New Zealand on Tuesday said it had selected Lockheed Martin Corp’s C-130J Super Hercules as the preferred replacement for five ageing C-130 Hercules military transport aircraft, a choice in line with its closest allies. The cabinet will seek detailed costing information through the U.S. foreign military sale process, New Zealand Defence Minister Ron Mark said, adding the government had previously estimated the cost at more than NZ$1bn (£520.52m). (Source: Reuters)

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