This month there was a significant amount of year-end contract activity in the GovCon marketplace. Foreign nations announced their intent to purchase military vehicles and the commencement of bidding competitions, several contractors were awarded significant contracts to support the U.S. Armed Forces, existing contract vehicles were augmented, and more. Letâs take a look at some of the activity that took place over the course of December:
- Lockheed MartinÂ securing a $7B F-22 sustainment IDIQ
- General Dynamics Land SystemsÂ receiving a $2.6B contract to modernize Abrams tanks for the Army
- India announced its intent to purchase $2B worth ofÂ General AtomicsÂ UAVs
- Lockheed MartinÂ secured a $961M USAF contract for Sniper ATPs
- Germany announced the commencement of the competition to replace its CH-53G fleet
- Pratt & WhitneyÂ won a potential $6.7B aircraft engine sustainment IDIQ
- BAE SystemsÂ closed a potential $6.69B deal to supply Qatar with fighter jets
- The GSA added 80 small business awardees to the $15B Alliant 2 GWAC
Lockheed MartinÂ announced on December 21stÂ that itÂ securedÂ a potential five-year, $7 billion ID/IQ contract to sustain the U.S. Air Forceâs fleet ofÂ F-22Â fighter jets. Lockheedâs aeronautics business unit will perform work at various locations within and outside the continental U.S. including USAF and joint bases in multiple U.S. states. The sole-source contract has a base ordering period of five years and work may extend through December 2027.
On December 21stÂ General Dynamics Land SystemsÂ announcedÂ that it received a potential three-year, $2.63 billion contract to modernize the U.S. Armyâs fleet ofÂ M1A1 AbramsÂ tanks. GDLS will convert nearly 800 M1A1 configured vehicles into the new M1A2 System Enhancement Package Version 3 configuration. GDLS will also be upgrading M1A1 vehicles toÂ M1A2SÂ andM1A2-KÂ models.
Also on December 21stÂ India announced its intent toÂ purchaseÂ General Atomics-built unmanned aerial systems designed for maritime surveillance for approximately $2 billion in a government-to-government deal with the United States. A Business Standard report provided details on the deal, which outlines Indiaâs plan to purchase 22 units of unarmedÂ Sea GuardianÂ UAS. The Sea Guardian is a naval variant of theÂ Predator BÂ platform. The U.S. and Indian governments said in a joint statement that the sale of Sea Guardians will bolster Indiaâs maritime capabilities and expand bilateral maritime security cooperation.
Also on December 20thÂ Lockheed MartinÂ announced that it hadÂ securedÂ a potential five-year, $961 million contract to perform upgrades and sustainment services for the U.S. Air ForceâsÂ SniperAdvanced Targeting Pods. The Sniper ATP detects and tracks long-range small tactical targets and can perform air-to-air and air-to-ground targeting functions. The ID/IQ contract covers 683 Sniper pods, spares, sensor and software updates, logistics support and other services. Paul Lemmo, vice president of fire control/special operations forces contractor logistics support services at Lockheedâs missiles and fire control business, said the company is proud to continue its partnership and support the service branchâs operations through the delivery of targeting technology platforms.
On December 15thÂ General Volker Wieker, chief of staff of the German Bundeswehr,Â signeda document signaling the start of the competition for a potential $4.72 billion contract to purchase 45-60 heavy-lift helicopters to replace the nationâs current fleet ofÂ CH-53GÂ aircraft. Germany has not decided on a specific preferred aircraft model.Â Lockheed MartinÂ plans to proposeSikorskyâsÂ CH-53KÂ helicopter, whileÂ BoeingÂ plans to offer itsÂ CH-47Â twin-rotor aircraft. Germanyâs defense ministry plans to release an RFI by the second half of 2018 upon the completion of a fleet capability study. Furthermore, Germany plans to award the contract by mid-2020, with a plan to start initial deliveries by 2023.
The U.S. Air ForceÂ awardedÂ a potential eight-year, $6.7 billion ID/IQ contract to sustainÂ F119Â aircraftengines toÂ Pratt & WhitneyÂ on December 14th.Â TheÂ United TechnologiesÂ subsidiary will perform contract work through December 2025 under the sole-source contract. The F119 turbofan engines power the USAFâs fleet ofÂ F-22 RaptorÂ fighter jets. Work will take place at Air Force bases in Alaska, California, Connecticut, Hawaii, Utah, New Mexico, Nevada, Oklahoma, Texas and Florida.
BAE SystemsÂ announced on December 10thÂ that it hadÂ securedÂ a potential $6.69 billion contract to supply the Qatari air force with 24Â Eurofighter TyphoonÂ multirole fighter jets. BAE said that it expects to begin deliveries in late 2022 and will provide in-service support and initial training as a prime contractor. BAE Systems, long withÂ Airbus Groupâs defense and space business segment andÂ Leonardoâs aircraft unit, will manufacture the Typhoon jets. Charles Woodburn, chief executive of BAE, said âwe are delighted to begin a new chapter in the development of a long-term relationship with the State of Qatar and the Qatar Armed Forces, we look forward to working alongside our customer as they continue to develop their military capability.â
On December 7thÂ the GSAÂ awarded 80 companiesÂ with positions on the small business track of a potential 10-year, $15 billion governmentwide acquisition contract vehicle for IT platforms andÂ services. The GSA posted a list of the winners on theÂ Alliant 2 Small BusinessÂ GWAC in a pre-award notice on FedBizOpps. The Alliant 2 SB has a base period of five years and has five option years. The minimum contract guarantee for each contractor is set at $2,500. The award came nearly a month after GSA selectedÂ 61 companiesÂ for the potential 10-year, $50 billion unrestricted portion of Alliant 2.