Bidders Invited to $20B ITES-2 Army IT Project

The U.S. Army has invited 17 companies to compete for a piece of Information Technology Enterprise Solutions-2, its $20 billion information technology services contract and follow-on contract to the original $500-million ITES program. Qualifications like experience with performance-based contracting were among the criteria used. An RFP is expected in April, and the contract is expected to be awarded by the end of June.

The products and services contract will run for nine years, and the Army expects to award eight contracts, four to large businesses and four to businesses having 1,500 employees or fewer. Then the companies will compete with each other for work assignments under the contract. Some of the services the Army is seeking include business process re-engineering, systems and network integration, application development, and systems security. Source: Army Invites Firms to Pursue $20 Billion IT Bid

$609M for 30,000 JDAMs

Boeing subsidiary McDonnell Douglas Corp. of Saint Louis, MO, is being awarded a $609.3 million firm fixed price contract to provide for 30,072 Joint Direct Attack Munition (JDAM) Guided Vehicles. The JDAM is a bolt-on kit that gives ordinary 500-2000 lb. Bombs Inertial Navigation System and Global Positioning System capability, turning them into precision strike weapons. Work will be performed at McDonnell Douglas Corp. in Saint Louis, MO (75%), and Honeywell Incorporated, in Minneapolis, MN (25%), and is expected to be complete by February 2007. Solicitation began October 2004 and negotiations were completed March 2005. The Headquarters Air-To-Ground Munitions Systems Wing at Eglin Air Force Base, FL issued the contract (FA8681-05-C-0033).

Northrop’s Space Revenues Projected To Drop Amidst Overall Rise

Northrop DSP Satellite

Northrop Grumman’s recent investor guidance forecasts a dip below $3 billion for its Space Technology subsidiary, and possibly as low as $2.5 billion, after two years of strong growth. Space Technology, a unit that was created after Northrop Grumman acquired the space and defense assets of TRW Inc. in December 2002, reported revenue of $3.3 billion in 2004.

$37.8M Contract for A-10 Upgrades

O/A-10 “Warthogs”

Lockheed Martin received a $37.8 million contract to provide the U.S. Air Force with Precision Engagement production kits to modify A/OA-10 “Warthog” close air support aircraft 72 each A/AO-10 Precision Engagement Spiral 1 Modification Kits and Associated Test Equipment. At this time, $28.3 million of the funds have been obligated. Solicitation began July 2004 by the Headquarters Ogden Air Logistics Center at Hill Air Force Base, UT (FA8202-05-C-0004). Lockheed Martin release.

The production kits, a result of work by Lockheed Martin, BAE Systems and Southwest Research Institute, are one component of the Precision Engagement program, the largest single upgrade effort ever undertaken for the USA’s A-10 fleet. It will give the A/OA-10 precision strike capability sooner than planned, and combines multiple upgrade requirements into one program rather than executing them as standalone projects. The entire fleet will be modified over 5 years, at an estimated total contract value of $168 million. While O/A-10 aircraft continue to outperform technology-packed rivals on the battlefield, this set of upgrades is expected to help keep the aircraft current until the current fleet’s planned phase-out in 2028.

See DID’s FOCUS Article covering the A-10C PE program for more information…

$68.2M to Develop Next-Generation Predator UAV

MQ-9 Concept

General Atomics-Aeronautical Systems of San Diego, CA received a $68.2 million cost-plus-incentive-fee contract to provide for the System Development and Demonstration (SDD) of the MQ-9 Hunter-Killer Aircraft. The MQ-9 is the next generation of the MQ-1 Predator, whose military role is expected to expand considerably over the next few years. The MQ-9 effort will enhance the Predator’s weapons carrying and targeting capability, and includes options for the retrofit of four aircraft to the MQ-9 SDD configuration, along with communications and ground and flight test facility upgrades. The Headquarters Aeronautical Systems Center at Wright-Patterson Air Force Base, OH issued the contract (F33657-02-G-4035, Order 23).

$26M to Upgrade Predator Drone’s Targeting

MQ-1 Predator

Raytheon Systems Co. in McKinney, TX received a $26 million firm-fixed-price modification under previously awarded Basic Ordering Agreement (N00164-00-G-0007) to upgrade the MQ-1 Predator’s sensors and targeting capabilities. This contract comes at a time when the USAF is proposing to significantly expand its force of Predators.

Multi-spectral Targeting Systems (MTS) will be added in their “A” configuration, including 22 Turret Units and associated line items in support of the Predator Unmanned Aerial Vehicle (UAV) program. The MTS is a forward-looking infrared system for the Predator UAV that provides real-time imagery selectable between infrared and day TV, as well as a laser-designation capability. Work will be performed in McKinney, TX and is expected to be complete by June 2007. The Naval Surface Warfare Center, Crane Division in Crane, IN issued the contract modification.

$20M to Monitor USN’s Environmental Fixes in the NW

SES-TECH, a joint venture and small business qualifier in Seattle, WA, is being awarded a not-to-exceed $20 million firm-fixed-price, indefinite-delivery/ indefinite-quantity contract to measure the effectiveness of the Navy’s environmental remediation and controls in the American Northwest. They will be tasked to support the Engineering Field Activity (EFA) Northwest by measuring levels of chemicals, determining their environmental impact, and comparing their findings to Navy guidelines and objectives. This will help them identify environmental trends and modify Navy action plans. Work will be performed at various Navy and Marine Corps installations within the EFA Northwest including, but not limited to, Washington (77%), Alaska (20%), Oregon (1%), Idaho (1%), and Montana (1%). The term of the contract is not to exceed 60 months with an expected completion date of March 2006. This contract is a sole source 8(a) procurement with an Alaskan native corporation (ANC) component. The Engineering Field Activity Northwest of Naval Facilities Engineering Command in Poulsbo, WA issued the contract (N44255-05-D-5101).

CSC to Develop Simulation Training for Army Aviation

Example: L-39 Simulator

Computer Sciences Corp. – Defense in Falls Church, VA received a $29 million firm-fixed-price modification to a previously awarded indefinite-delivery/ indefinite-quantity contract (N61339-03-D-0014) to develop, produce, install, and operate simulation trainers that conform to the requirements of Flight School XXI (FSXXI) Simulation Services for the United States Army Aviation Center (USAAVNC) at Fort Rucker, AL. Work will be performed in Fort Rucker, AL, and is expected to be complete in March 2006. The Naval Air Systems Command, Training Systems Division in Orlando, FL issued the contract.

Another OC-12 Bandwidth Lease to Asian Bases

The U.S. Defense Information Technology Contracting Organization – Pacific, based in Pearl Harbor, HI, has awarded a $5.2M firm-fixed-price contract to Qwest Government Services Inc. in Arlington, VA for a 12-year lease of one OC-12 bandwidth circuit between Misawa, Japan, and Osan, Korea. The contract (QWCC W 40008) was solicited under full and open competition. Earlier this month, Sprint was awarded a similar 12-year lease for $8.7 million for a connection between Misawa, Japan and Guam.

USA: Some Recent Illegal Arms Export Investigations

Miami ICE

US Immigration and Customs Enforcement (ICE) Arms and Strategic Technology Investigations (ASTI) division is responsible for investigating illegal exports of military products and sensitive technologies. Last year, ICE’s ASTI division opened approximately 3,000 new criminal investigations. Through an industry outreach program called “Project Shield America,” ICE’s ASTI division is visiting US manufacturers of arms and sensitive technology to educate them about export laws and to solicit their assistance in preventing illegal foreign acquisition of their products. A recent article by Jim Kouri of CPP offered a series of wrap-up summaries regarding some of the recent ICE investigations.