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CONTRACT NEWS IN BRIEF

July 19, 2019 by

UNITED KINGDOM

LAND

19 Jul 19. Airbus to run UK MOD’s land C4ISR test centre. Airbus has agreed a five-year contract with the UK Ministry of Defence (MOD) to manage test and reference services to support the delivery and assured release of Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) capability for deployed operations around the globe. The contract is valued at approximately £22m (€ 25m). Airbus offers the UK MOD a seamless transition and delivery of a comprehensive, consistent and coherent service model for the Land Systems Reference Centre (LSRC), delivering test and reference capability to support development, integration, approval and de-risking of C4ISR systems and services. Airbus aims to make the LSRC the UK MOD’s centre of excellence for advice and test, ensuring that MOD networks can accommodate new applications, hardware and services. Major programmes such as Morpheus, which is the next generation tactical communications system for the British Armed Forces, will be tested in the LSRC.

AIR

16 Jul 19. Marshall Aerospace and Defence Group in Cambridge has signed a contract with Boeing to commence preparatory work for the E-7 Wedgetail Airborne Early Warning & Control (AEW&C) Programme. This Risk Reduction contract facilitates Boeing’s selection of Marshall to undertake the complex aircraft modification work to build five E-7 aircraft for the Royal Air Force. The subsequent programme of work is being discussed between the companies, and will be announced in due course. Marshall is key to the conversion and delivery of the new fleet, and this contract with Boeing will ensure it is fully prepared to begin the modification process in Cambridge early in 2021. The programme will see Marshall’s skilled team turn 737 Next-Generation aircraft into E-7s, including adding the Northrop Grumman Multi-role Electronically Scanned Array (MESA) surveillance radar, communication and mission computer systems. The work will sustain hundreds of highly-skilled jobs in the area.

EUROPE

LAND

15 Jul 19. State Department Approves $401m Patriot Missile Sale To Germany. The State Department approved a potential $401m Foreign Military Sale (FMS) to Germany for Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhanced (MSE) missiles. The Defense Security Cooperation Agency (DSCA) notified Congress of the sale on July 12. Germany requested 50 PAC-3 MSEs and the order also includes launcher conversion kits, missile round trainers, ground support equipment, Quality Assurance Team, MSE repair and return, U.S. government transportation, MSE launcher spare parts, U.S. government range support, and other related logistical and program support. The prime contractor for the deal is Lockheed Martin [LMT], which builds the upgraded missiles. DSCA said Germany will use the additional missiles to “build a more robust air defense capability and increase its air lethality against air defense threats.” The agency also noted this will enhance Germany’s status as maintaining the largest air defense capacity in Europe. A Lockheed Martin spokesperson confirmed to Defense Daily that these are the first MSEs going to Germany, designed to upgrade their current PAC-3 missiles. Implementing the sale will require more contractor representatives to Germany, but DSCA does not expect additional U.S. government personnel to travel there for an extended period. This approval comes during a boom in international sales for the missiles. Two months ago, the State Department approved a $2.7bn sale of 452 PAC-3 MSE missiles to the United Arab Emirates and 50 PAC-3 MSEs to Bahrain as part of a $2.5bn sale (Defense Daily, May 3). Last year, Romania signed an agreement with the U.S. Army to buy three Patriot air and missile defense systems, including PAC-3 MSEs. In 2018, the State. Department approved a $501m FMS to South Korea for 64 PAC-3 MSEs (Defense Daily, Sept. 13, 2018) while last August Sweden agreed to buy the Patriot system with PAC-3 MSEs. In March 2018, Poland signed a letter of offer and acceptance to buy Raytheon [RTN]-built Patriot system with the Lockheed Martin PAC-3 MSEs. In February 2018, the U.S. Army awarded Lockheed Martin a $524m modification for domestic and FMS production od PAC-3 MSEs. (Source: Defense Daily)

16 Jul 19. Serbia signs for the acquisition of Mistral 3 short-range air defence systems with MBDA. On the occasion of the visit of French President Emmanuel Macron to Serbia today, MBDA announces the signing of a contract for the acquisition of Mistral 3 short-range air defense systems by the Ministry of Defence of Serbia. With this first European missile order, Serbia becomes the 32nd customer country for the Mistral missile and the 10th country invited to join the Mistral user club. This will allow Serbia to benefit from the shared user experiences from the many forces operating the Mistral in Europe and to contribute to the definition of the future developments of the weapon systems based on this missile. The contract is for the acquisition of Mistral missiles, launchers for dismounted soldiers, related equipment and logistics, and the provision of technical and material assistance for the integration of the Mistral missile on the PASARS vehicles of the Serbian Armed Forces. As the latest generation of Mistral family today in service, Mistral 3 features a very high resistance to infrared countermeasures and a capability to engage air targets presenting a low thermal signature, such as missiles and UAVs.

15 Jul 19. Northrop Grumman Corporation’s (NYSE: NOC) U.K.-based air traffic communications subsidiary, Park Air Systems Limited, in partnership with Leonardo, through its subsidiary Vitrociset, has been awarded a radio replacement contract for ENAV, the Italian provider of civil air traffic services. The agreement is a five year contract to replace ground-to-air communications equipment for 46 airports and the supporting en-route infrastructure. The provision will update existing products to meet the 8.33 kHz channel spacing, using the market leading Park Air T6 radio and other products from the Sapphire portfolio. The modernization will incorporate the requirement to move to Voice over Internet Protocol (VoIP). Equipment comprising of both UHF and VHF T6 radios, antennas and remote control monitoring systems alongside customer acceptance testing and product training will be provided by Park Air. Vitrociset, a Leonardo company and Park Air’s partner, will be responsible for the in-territory services and ongoing maintenance support.

16 Jul 19. Belgium chooses Thales for onboard intelligence and future data capabilities of its land forces.

  • Further to the CaMo (Capacité Motorisée) government-to-government agreement signed by France and Belgium at the end of 2018, Thales began work on the initial CaMo capability on 26 June 2019 to provide vehicle electronics for Scorpion vehicles. The order covers 382 Griffon multi-role armoured vehicles (VBMR) and 60 Jaguar reconnaissance and combat vehicles (EBRC) to be supplied in partnership with Arquus and Nexter.
  • As the French industry leader in intelligent onboard systems, Thales will provide the comprehensive range of data capabilities needed to engage the vehicles in future data capabilities in combat. This includes common vetronics and communication systems based on the CONTACT software defined radio (called SYNAPS in export markets).
  • With Thales digital technologies on board, the vehicles will be ready for the collaborative combat of tomorrow.

The CaMo contract awarded by the French defence procurement agency (DGA) on behalf of Belgium includes 60 Jaguar reconnaissance and combat vehicles (EBRC) and 382 Griffon multi-role armoured vehicles (VBMR). As with France’s Scorpion programme, under this contract Thales is in charge of common combat vetronics, including communications, onboard computing and decision support solutions, and perimeter vision, self-protection and navigation systems. This unprecedented level of cooperation between the Belgian and French land forces is a strategic enabler for combat engagements by European armed forces.

SEA

12 Jul 19. Damen to modernise Dutch vessels. Damen Shipyards Den Helder has signed a contract with the Netherlands Ministry of Defence to support various vessels of the Royal Netherlands Navy, the company announced on 11 July. The midlife upkeep contract covers logistic support ship, HNLMS Pelikaan, along with hydrographic survey vessels, HNLMS Snellius and HNLMS Luymes. The vessels will undergo maintenance and modernisation work including being equipped with new hull plating, renewal of radars and communications equipment and maintenance of the ship’s systems, along with regular maintenance. Damen will begin work on the project later this year and expects to complete it in 2021. Work will be distributed between Damen Shipyards Den Helder and Damen Shiprepair Harlingen. (Source: Shephard)

AIR

12 Jul 19. The Portuguese Air Force is set to receive five KC-390 new-generation multi-mission airlifters under an order placed with Embraer. The procurement of the airlifters is part of the Portuguese Government’s efforts to modernise the capabilities of the service to support national armed forces operations and increase readiness. Embraer will begin deliveries in 2023. The Brazilian company noted that the KC-390 military transport aircraft is designed to deliver improved efficiency and productivity. The aircraft can be used to conduct humanitarian support, medical evacuation, search and rescue, and aerial firefighting. Additionally, the KC-390 will feature capabilities such as enhanced cargo and troop transport, aerial delivery and refuelling. (Source: airforce-technology.com)

13 Jul 19. Greece Cleared to Buy $600m in MH-60R Helicopters, Weapons and Equipment. The U.S. State Department has given the go-ahead for Greece to purchase seven Sikorsky [LMT] MH-60R Seahawk helicopters under a $600m foreign military sale. “The proposed sale will improve Greece’s capability to meet current and future threats,” according to a Defense Security Cooperation Agency (DSCA) announcement of the approved sale issued July 12. “The MH-60R Multi- Mission Helicopter will provide the capability to perform anti-surface and anti-submarine warfare missions along with the ability to perform secondary missions including vertical replenishment, search and rescue, and communications relay. Greece will have no difficulty absorbing these helicopters into its armed forces.” Aside from the seven helicopters, the sale would include 10 APS-l 53 multimode radars, 18 T700 GE-401 C engines, airborne low frequency systems, multi-spectral targeting systems, embedded GPS/inertial navigation systems and 1,000 AN/SSQ-36/53/62 sonobuoys for submarine detection. Greece is also approved to buy two AGM-114 captive air training missiles, four AGM-114Q Hellfire training missiles, 100 advanced precision kill weapons system rockets, 30 MK 54 torpedoes, a dozen M-2400 crew-served guns and twelve GAU-21 crew-served guns. The principal contractor will be Lockheed Martin Rotary and Mission Systems, which owns MH-60 manufacturer Sikorsky, in Owego, N.Y. Implementation of the proposed sale will require the assignment of five additional U.S. government personnel and five contractor representatives to Greece. (Source: Defense Daily)

18 Jul 19. Piaggio Aerospace to maintain IAF engines. Piaggio Aerospace will maintain engines that power Italian Air Force aircraft under two contracts announced on 17 July. The two contracts, worth a combined €167m, cover engine maintenance and spare parts supply. Under the first, worth €129m over nine years, the company will assure the maintenance of the Viper engines installed on the MB-339 training and aerobatic aircraft. The second contract, worth €38m over three years, will guarantee the supply of related spare parts. (Source: Shephard)

USA

LAND

15 Jul 19. BAE Systems to design ERCA prototype for US Army. In the US Army’s bid to develop a Strategic Long-Range Cannon programme, BAE Systems has been tapped to design an Extended Range Cannon Artillery (ERCA) prototype. The company announced on 15 July that it had received a USD45m contract to design an ERCA Increment 1 prototype that will increase the range and rate of fire on current, as well as future, M109A7 self-propelled howitzers. To achieve this increase, ERCA will be integrated onto the M109A7 and the M109A7’s current 39-calibre turret will be replaced with a 58-calibre, 30 ft long gun barrel, the company said. (Source: IHS Jane’s)

15 Jul 19. US Army orders vehicle installation kits for next-generation MFoCS II. The US Army Project Manager Mission Command has awarded a contract to Leonardo DRS to deliver vehicle installation kits (I-Kits) for the next-generation Mounted Family of Computer Systems II (MFoCS II). The indefinite-delivery indefinite-quantity contract has an estimated value of up to $28.3m. This is the second contract awarded to Leonardo DRS for the delivery of I-Kits. In April, the company secured the first $132.1m production delivery order for the next-generation MFoCS II. The procurement of additional I-Kits will support the army’s ongoing fielding of MFoCS mission command computing systems across operational units. MFoCS II Mission Command hardware will be deployed in support of maintaining the army’s next-generation friendly force tracking system Joint Battle Command – Platform (JBC-P). Upgrades of the platform include critical system capability upgrades, cybersecurity improvements, and multi-touch displays. The army is also refurbishing the JBC-P systems that perform tactical situational awareness and global ‘Blue Force Tracking’ and in-transit visibility logistics tracking. The process involves undertaking performance enhancements of the platform computing server. Using computing and display hardware such as tablet PCs, processor units, keyboards, removable solid-state storage, and display units, MFoCS II supports situational awareness Command and Control and manoeuvre capability. (Source: army-technology.com)

15 Jul 19. Lockheed Martin Corp., Grand Prairie, Texas, was awarded a $492,108,514 fixed-price-incentive contract for High Mobility Artillery Rocket Systems M142 launchers and support requirements to include Product Data Definition Package Maintenance, training, support equipment, qualification testing, initial spares/repair parts and software. One bid was solicited with one bid received. Work will be performed in Camden, Arizona; Boca Raton, Florida; Budd Lake, New Jersey; Whippany, New Jersey; Dallas, Texas; Palm Bay, Florida; Archbald, Pennsylvania; York, Pennsylvania; Clearwater, Florida; Jackson, Mississippi; and Brownboro, Alabama, with an estimated completion date of May 30, 2023. Fiscal 2019 operations and maintenance, Army funds in the amount of $66,404,293 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-19-C-0101).

12 Jul 19. SIG SAUER, Inc. announced the City of Milwaukee Police Department is transitioning to the SIG SAUER P320, 9mm pistol as their official duty firearm. The Milwaukee Police Department is a municipal police force comprised of seven districts with approximately 1,800 sworn officers. The P320 is a modular, striker-fired pistol available in full-size, carry, compact, and subcompact sizing.  The serialized trigger group makes the P320 adaptable to multiple caliber, size, and grip options. The P320 is available in 9mm, .357SIG, 40S&W, and .45ACP, with a choice of contrast, or SIGLITE Night Sights. The intuitive 3-point takedown requires no trigger pull for disassembly, and safety features include a striker safety, disconnect safety, and optional manual safety.

12 Jul 19. Vislink Technologies has received a contract from the US Army to provide intelligence, surveillance and reconnaissance (ISR) receiver devices. The $2.8m contract will include the supply of ruggedised, lightweight handheld receivers and associated accessories. The devices will have the ability to display real-time video imagery transmitted by aerial assets or frontline surveillance platforms. The company’s real-time video data provides actionable intelligence to enable operational flexibility and quick decision-making in challenging and hostile environments. In 2017, IMT Vislink won a $12.5m US Army contract for the supply of handheld ISR receiver devices. The company secured the first contract from the army for the devices in 2013. Vislink Communication Systems was bought by Integrated Microwave Technologies’ (IMT) parent company xG Technology in 2017 to boost market position in delivering end-to-end video capture / transmit / receive solutions. The transaction led to the merger of Vislink and IMT. (Source: army-technology.com)

AIR

17 Jul 19. Data Link Solutions LLC, Cedar Rapids, Iowa, is awarded a $235,566,335 modification to its current indefinite-delivery/indefinite-quantity contract (N00039-15-D-0007) to increase the ceiling of the existing production contract line item number (CLIN), spares CLIN, and systems engineering and integration CLIN of the referenced contract. This ceiling increase will implement the capabilities identified in the Joint Requirements Oversight Council (JROC) Memorandum dated Aug. 20, 2018, wherein the JROC endorsed the advanced capabilities of Concurrent Multi-Netting-4 (CMN-4), Concurrent Contention Receive, and Enhanced Throughput as the Department of Defense baseline for all future upgrades to any platform requiring Link-16. In response to the JROC memorandum, current Link-16 platform users identified the need for the procurement and/or retrofit of 3,370 additional Multifunctional Information Distribution System Joint Tactical Radio System (MIDS JTRS) CMN-4, F-22 Falcon, Tactical Targeting Network Technology (TTNT) terminals. This increase in scope will be in addition to the current scope in the original Class Justification and Approval (CJ&A) No. 17,226 approved April 25, 2014, for the MIDS JTRS; the amended CJ&A No. 18,012 approved Jan. 18, 2017, for the addition of the MIDS JTRS TTNT development effort; and CJ&A No. 18,415 approved Sept. 11, 2018, for the addition of MIDS Modernization Increment 2, retrofits and additional MIDS JTRS terminals, not including F-22s. The modification will increase the contract value to $1,224,529,670. This contract combines purchases for the Navy, Air Force and MIDS Program Office, as well as to the governments of Austria, Chile, Finland, Israel, Jordan, Japan, Kuwait, Malaysia, Morocco, Oman, Pakistan, Qatar, South Korea, Saudi Arabia, Singapore, Sweden, Switzerland, Taiwan, Thailand, United Arab Emirates, Australia, Canada, New Zealand and the United Kingdom. This contract also includes purchases to NATO and all NATO nations under the Foreign Military Sales program. Work will be performed in Cedar Rapids, Iowa (50%); and Wayne, New Jersey (50%), and is expected to be completed June 2020. No additional funding will be placed on contract or obligated at the time of modification award. Existing contract funds will not expire at the end of the current fiscal year. Future contract actions will be issued and funds obligated as individual delivery orders. This contract modification was not competitively procured because it is a follow-on sole-source, multiple-award procurement pursuant to the authority of Title 10 U.S. Code 2304(c)(1): only one or a limited number of responsible sources (Federal Acquisition Regulation subpart 6.302-1(a)(2)). Non-competitive procedures were approved for this modification under CJ&A 19,415. Naval Information Warfare System Command, San Diego, California, is the contracting activity.

18 Jul 19. ERAPSCO, Joint Venture of Sparton and USSI, Columbia City, Indiana, is awarded a not-to-exceed $1,041,042,690 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the manufacture and delivery of a maximum quantity of 37,500 AN/SSQ-36B, 685,000 AN/SSQ-53G, 120,000 AN/SSQ-62F, and 90,000 AN/SSQ-101B production sonobuoys for fiscal years 2019-2023. Sonobuoys are air launched expendable, electro-mechanical anti-submarine warfare acoustic sensors designed to relay underwater sounds associated with ships and submarines. Work will be performed in De Leon Spring, Florida (51%); and Columbia City, Indiana (49%), and is expected to be completed in September 2025. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was not competitively procured pursuant to 10 U.S. Code 2304(c)(1). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-19-D-0032).

 

15 Jul 19. General Atomics Aeronautical Systems Inc., Poway, California, was awarded a $275,000,000 hybrid (cost-plus-fixed-fee and firm-fixed-price) contract for aircraft, satellite communications air data terminals, universal ground data terminals, program management, and equipment maintenance and repair. Bids were solicited via the internet with one received. Work will be performed in Poway, California, with an estimated completion date of July 30, 2021. Fiscal 2017, 2018 and 2019 aircraft procurement, Army funds in the amount of $275,000,000 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-19-C-0022).

18 Jul 19. Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $34,670,000 undefinitized cost-plus-incentive-fee contract to develop and deliver an engineering change proposal to enable the production cut-in of the Fuselage Station 425 Bulkhead structural modification required for F-35A and F-35C to allow full-envelope internal carriage of aft heavy weaponry. Work will be performed in Fort Worth, Texas, and is expected to be completed in July 2022. Fiscal 2019 research, development, test and evaluation (Air Force, Navy and Marine Corps); and non-U.S. Department of Defense (DoD) participant funds in the amount of $9,953,400 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to U.S. Code 2304(c)(1). This undefinitized contract combines purchases for the Air Force ($13,787,219; 39.77%); Navy ($6,893,610; 19.88%); Marine Corps ($6,893,609; 19.88%); and non-U.S. DoD participants ($7,095,562; 20.46%). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-19-C-0010).

 

17 Jul 19. ViaSat Inc., Carlsbad, California, is awarded a $90,768,631 modification to its current indefinite-delivery/indefinite-quantity contract (N00039-15-D-0008) to increase the ceiling of the existing production contract line item number (CLIN) of the referenced contract. This ceiling increase will implement the capabilities identified in the Joint Requirements Oversight Council (JROC) Memorandum dated Aug. 20, 2018, wherein the JROC endorsed the advanced capabilities of Concurrent Multi-Netting-4 (CMN-4), Concurrent Contention Receive, and Enhanced Throughput as the Department of Defense baseline for all future upgrades to any platform requiring Link-16. In response to the JROC memorandum, current Link-16 platform users identified the need for the procurement and/or retrofit of 3,370 additional Multifunctional Information Distribution System Joint Tactical Radio System (MIDS JTRS) CMN-4, F-22 Raptor, Tactical Targeting Network Technology (TTNT) terminals. This increase in scope will be in addition to the current scope in the original Class Justification and Approval (CJ&A) No. 17,226 approved April 25, 2014 for the MIDS JTRS; the amended CJ&A No. 18,012 approved Jan. 18, 2017, for the addition of the MIDS JTRS TTNT development effort; and CJ&A No. 18,415 approved on Sept. 11, 2018, for the addition of MIDS Modernization Increment 2, retrofits, and additional MIDS JTRS terminals, not including F-22s. The modification will increase the contract value to $789,000,000. This contract combines purchases for the Navy, Air Force and MIDS Program Office, as well as to the governments of Austria, Chile, Finland, Israel, Jordan, Japan, Kuwait, Malaysia, Morocco, Oman, Pakistan, Qatar, South Korea, Saudi Arabia, Singapore, Sweden, Switzerland, Taiwan, Thailand, United Arab Emirates, Australia, Canada, New Zealand and the United Kingdom. This contract also includes purchases to NATO and all NATO nations under the Foreign Military Sales program. Work will be performed in Carlsbad, California, and work is expected to be completed May 2020. No additional funding will be placed on contract or obligated at the time of modification award. Existing contract funds will not expire at the end of the current fiscal year. Future contract actions will be issued and funds obligated as individual delivery orders. This contract modification was not competitively procured because it is a follow-on sole-source, multiple-award procurement pursuant to the authority of Title 10 U.S. Code 2304(c)(1): only one or a limited number of responsible sources (Federal Acquisition Regulation subpart 6.302-1(a)(2)). Non-competitive procedures were approved for this modification under CJ&A 19,415. Naval Information Warfare System Command, San Diego, California, is the contracting activity.

REST OF THE WORLD

TECHNOLOGY

15 Jul 19. Raytheon Company (NYSE: RTN) has been awarded a contract to develop and deploy a mission-critical, advanced Cybersecurity Operations Center and services for a country in the Middle East North Africa region. Under the contract, worth close to $110m, Raytheon will perform vulnerability assessments and provide cybersecurity response centers that include intrusion detection, associated training, knowledge transfer, operational support, and incident response to proactively address cyber threats to the country’s critical defense systems.

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