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Executive Mosaic’s Weekly GovCon Round-up: December’s Most Significant Contract Activity

Weekly Roundup
December 18 – December 22 2017

A Note From Our President & Founder Jim Garrettson

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. Let’s take a look at some of the activity that took place over the course of December:

  • Lockheed Martin securing a $7B F-22 sustainment IDIQ
  • General Dynamics Land Systems receiving a $2.6B contract to modernize Abrams tanks for the Army
  • India announced its intent to purchase $2B worth of General Atomics UAVs
  • Lockheed Martin secured a $961M USAF contract for Sniper ATPs
  • Germany announced the commencement of the competition to replace its CH-53G fleet
  • Pratt & Whitney won a potential $6.7B aircraft engine sustainment IDIQ
  • BAE Systems 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 Martin announced on December 21st that it secured a potential five-year, $7 billion ID/IQ contract to sustain the U.S. Air Force’s fleet of F-22 fighter jets. Lockheed’s 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 21st General Dynamics Land Systems announced that it received a potential three-year, $2.63 billion contract to modernize the U.S. Army’s fleet of M1A1 Abrams 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 to M1A2S andM1A2-K models.

Also on December 21st India announced its intent to purchase 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 India’s plan to purchase 22 units of unarmed Sea Guardian UAS. The Sea Guardian is a naval variant of the Predator B platform. The U.S. and Indian governments said in a joint statement that the sale of Sea Guardians will bolster India’s maritime capabilities and expand bilateral maritime security cooperation.

Also on December 20th Lockheed Martin announced that it had secured a potential five-year, $961 million contract to perform upgrades and sustainment services for the U.S. Air Force’s 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 Lockheed’s missiles and fire control business, said the company is proud to continue its partnership and support the service branch’s operations through the delivery of targeting technology platforms.

On December 15th General Volker Wieker, chief of staff of the German Bundeswehr, 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 nation’s current fleet of CH-53G aircraft. Germany has not decided on a specific preferred aircraft model. Lockheed Martin plans to proposeSikorsky’s CH-53K helicopter, while Boeing plans to offer its CH-47 twin-rotor aircraft. Germany’s 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 Force awarded a potential eight-year, $6.7 billion ID/IQ contract to sustain F119 aircraftengines to Pratt & Whitney on December 14th.  The United Technologies subsidiary will perform contract work through December 2025 under the sole-source contract. The F119 turbofan engines power the USAF’s fleet of F-22 Raptor fighter jets. Work will take place at Air Force bases in Alaska, California, Connecticut, Hawaii, Utah, New Mexico, Nevada, Oklahoma, Texas and Florida.

BAE Systems announced on December 10th that it had secured a potential $6.69 billion contract to supply the Qatari air force with 24 Eurofighter Typhoon 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 with Airbus Group’s defense and space business segment and Leonardo’s aircraft unit, will manufacture the Typhoon jets. Charles Woodburn, chief executive of BAE, said “we 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.”

On December 7th the GSA awarded 80 companies with positions on the small business track of a potential 10-year, $15 billion governmentwide acquisition contract vehicle for IT platforms and services. The GSA posted a list of the winners on the Alliant 2 Small Business 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 selected 61 companies for the potential 10-year, $50 billion unrestricted portion of Alliant 2.

THIS WEEK’S TOP NEWS STORIES

Weekly Contract Awards
This week’s top GovCon contract awards: Lockheed Martin, ViaSat, General Dynamics, Boeing, Deloitte, KPMG, and many others.
Report: DoD Says Contractors Must Have ‘System Security Plans’ by Year’s End
A spokesman for the Defense Department has said defense contractors must have “system security plans” in place by Dec. 31 to comply with the National Institute of Standards and Technology’s federal data protection regulations, Defense One reported Wednesday.
Executive Spotlight: Interview with Wayne Lewandowski, SVP/GM, North American Public Sector for HyTrust
To discuss the methodology of how to bring the cloud to market, ExecutiveBiz reached out to Wayne Lewandowski, Senior Vice President and General Manager of HyTrust’s North America Public Sector
Jacobs Closes $3.27B CH2M Purchase; Steve Demetriou Comments
Jacobs Engineering Group (NYSE: JEC) has concluded its approximately $3.27 billion purchase of CH2M through a cash-and-stock transaction in a move to establish a $15 billion combined firm that will provide infrastructure and professional services to government and commercial clients.
IBM Vet David Hathaway Named Vectrus IT, Network Comm Services SVP
David Hathaway, formerly vice president, partner and head of defense and intelligence industry team at IBM’s (NYSE: IBM) global business services unit, has joined Vectrus (NYSE: VEC) as senior VP for information technology and network communication services, GovConWire has learned.
Report: Accenture to Help CBP Employ 5K Border Patrol Agents Under $297M Contract
Accenture (NYSE: ACN) has won a potential five-year, $297 million contract to help the Customs and Border Protection recruit and employ 5,000 border patrol agents, the Los Angeles Times reported Sunday.
DXC to Support CMS Medicare Data Repository Under Potential $81M Contract; Marilyn Crouther Comments
DXC Technology has secured a potential $81 million contract to provide a range of information technology support services for an integrated data repository at the Centers for Medicare and Medicaid Services.
Bluestone Execs John Allen, Susan Gabay, Greg Van Beuren to Join Houlihan Lokey’s Govt Unit
Three senior executives at McLean, Virginia-based Bluestone Capital Partners will join Houlihan Lokey’s (NYSE: HLI) aerospace, defense and government services group as managing directors after the Los Angeles, California-based investment bank merged ADG with Bluestone’s mergers and acquisitions advisory practice.
Transcom Eyes ‘Secret’ Level Cloud Services Contract Award to AWS
The U.S. Transportation Command has announced its intent to award a contract to Amazon Web Services to provide commercial cloud services designed to host data classified at the “secret” level.
Leidos Secures Navy Contract to Help Build 2nd ‘Sea Hunter’ Autonomous Vessel
Leidos has received a potential three-year, $43.5 million contract from the U.S. Navy to build a hull structure for the construction of a second autonomous vessel.
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