Tuesday, January 19, 2010
DTN News: U.S. Department of Defense Contracts Dated January 19, 2010 *Source: DoD issued January 19, 2010 (NSI News Source Info) WASHINGTON - January 19, 2010: U.S. Department of Defense, Office of the Assistant Secretary of Defense (Public Affairs) Contracts issued January 19, 2010 are undermentioned; CONTRACTS ARMY ~Sikorsky Aircraft Corp., Stratford, Conn., was awarded on Jan. 15, 2010 a $923,716,895 firm-fixed-price contract for the funding of Fourth Program Year of multi-year contract for Army Lot 34 consisting of 46 each UH-60M and 21 each HH-60M Black Hawk helicopters and 10 each Option UH-60M Black Hawk helicopters for Army and also tooling: program systems management; and technical publications. Work is to be performed in Stratford, Conn., with an estimated completion date of Dec. 31, 2012. One bid solicited with one bid received. U.S. Army Aviation & Missile Command, AMSAM-AC-BH-A, Redstone Arsenal, Ala., is the contracting activity (W5RGZ-08-C-0003). ~Sikorsky Aircraft Corp., Stratford, Conn., was awarded on Jan. 15, 2010 a $600,697,952 firm-fixed-price contract for the funding of Fourth Program Year of multi-year contract for Navy Lot 12 consisting of 18 each MH-60S Sea Hawk helicopters and for Navy Lot 8 consisting of 24 each MH-60R Sea Hawk helicopters for the Navy and also tooling: program systems management; and technical publications. Work is to be performed in Stratford, Conn., with an estimated completion date of Dec. 31, 2012. One bid solicited with one bid received. U.S. Army Aviation & Missile Command, AMSAM-AC-BH-A, Redstone Arsenal, Ala., is the contracting activity (W5RGZ-08-C-0003). ~Son’s Quality Food Company, Silver Spring, Md., was awarded on Jan. 15, 2010 a $63,189,885 cost-plus-award-fee contract for the cadet mess, mess attendant/waiter services for the United States Military Academy. Work is to be performed in West Point, NY, with an estimated completion date of Sept. 30, 2017. Bids were solicited on the World Wide Web with seven bids received. Mission Installation Contracting Command, DOC, West Point, N.Y., is the contracting activity (W911SD-10-C-0005). ~Neumann Brothers, Inc., Des Moines, Iowa., was awarded on Jan. 14, 2010 a $24,860,500 firm-fixed-price contract for the design and construction of a new Armed Forces Reserve Center with field maintenance shop in Middletown, Iowa. Work is to be performed in Middletown, Iowa, with an estimated completion date of Jan. 15, 2012. Bids were solicited via Army Single Face Industry with 40 Phase I, and 3 Phase II bids received. National Guard Bureau Iowa, Johnson, Iowa, is the contracting activity (W912LP-10-C-0001). ~Lockheed Martin Missiles and Fire Control, Orlando, Fla., was awarded on Jan. 14, 2010 a $19,399,999 firm-fixed-price contract for definitization of an undefinitized contract action for the purchase of M-TADS/PNVS Arrowhead kits, partial B-kits, spares and tads electronic display and control. Work is to be performed in Orlando, Fla., with an estimated completion date of Sept. 30, 2011. One bid was solicited with one bid received. Army Contracting Command, Aviation & Missile Command Contracting Center, CCAM-AP, B, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-06-C-0169). ~Journeyman Construction, Inc., Austin, Texas., was awarded on Jan. 13, 2010 a $10,681,418 firm-fixed-price contract for the construction of an Armed Forces Reserve Center. Work is to be performed in Lufkin, Texas., with an estimated completion date of Mar. 12, 2011. Bids were solicited on the World Wide Web with 14 bids received. U.S. Army Corps of Engineers, Louisville District, Louisville, Ky., is the contracting activity (W912QR10-C-0027). ~Northrop Grumman Space & Mission Systems Corp., Carson, Calif., was awarded on Jan, 15, 2009 a $8,043,000 cost-plus-fixed-fee contract for the Product Director Network Operations-Current Forces has a requirement for support services for the Force XXI Battle Command Brigade and Below, Integrated System Command/Tactical Internet Management System, and Blue Force tracking data product and automated toll development/update. Work is to be performed in Carson, Calif., with an estimated completion date of Dec. 4, 2010. Sixteen bids were solicited with one bid received. CECOM Acquisition Center, Fort Monmouth, N.J., is the contracting activity (W91QUZ-07-D-0005). ~DRS Sustainment Systems, Inc., St. Louis, Mo., was awarded on Jan. 15, 2010 a $7,198,850 firm-fixed-price contract for additional services and consumables to support the Expeditionary Water Packaging System. Work is to be performed in St. Louis, Mo., with an estimated completion date of Dec. 9, 2010. One bid was solicited with one bid received. U.S. Army Contracting Command, Warren, Mich., is the contracting activity (W56HZV-10-C-0010). ~Meinecke-Johnson Company., Fargo, N.D., was awarded on Jan. 13, 2010 a $7,161,800 firm-fixed-price contract for the construction of an Army Reserve Center in Fargo, N.D. Work is to be performed in Fargo, N.D., with an estimated completion date of May 19, 2011. Bids were solicited on the World Wide Web with five bids received. U.S. Army Corps of Engineers, Louisville District Louisville, Ky., is the contracting activity (W912QR-10-C-0028). ~Harris IT Services, Dulles, Va., was awarded on Sept. 24, 2009 a $6,323,003 contract for TIER III to adequately support the rapid growth of roles and responsibilities relating to centralized network operations of the Air National Guard NIPRNet and SIPRNet additional staffing is required to augment the current military forces. Work is to be performed in Arlington, Va., with an estimated completion date of Sept. 23, 2014. Bids were solicited on the World Wide Web with two bids received. National Guard Bureau, Air Support Division NGB-ZC-AQ, Arlington, Va., is the contracting activity (FA8771-04D-0003-2Y04). ~The Boeing Company, Mesa., Ariz., was awarded on Jan. 15, 2010 a $6,268,746 firm-fixed-price contract for the post production system support, engineering services, product quality deficiency report (25) for the AH-64 Apache airframe. This effort will be for 12 months to support weapons interface, crew station development, and engineering analysis. Work is to be performed in Mesa, Ariz., with an estimated completion date of Jan. 13, 2013. One bid solicited with one bids received. U.S. Army Contracting Command, AMCOM Contracting Center, CCAM-AP-A, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-05-G-0005). NAVY ~J2 Engineering, Inc.*, Tampa, Fla., is being awarded $7,138,569 for firm-fixed price task order #0003 under a previously awarded indefinite-delivery/indefinite-quantity multiple award construction contract (N69450-08-D-1782) for repair of Buildings 330 and 333 at the Marine Corps Recruit Depot Parris Island. The work to be performed provides for the contractor to furnish all labor, equipment, tools, transportation and materials required to execute repairs. Work will be performed in Beaufort, S.C., and is expected to be completed by Jun. 2011. Contract funds will expire at the end of the current fiscal year. Four proposals were received for this task order. The Resident Officer in Charge of Construction, Beaufort, Beaufort, S.C., is the contracting activity. ~Detyens Shipyards, Inc., North Charleston, S.C., is being awarded a $6,405,847 firm-fixed-price contract for a 55-calendar day regular overhaul of Military Sealift Command’s fleet replenishment oiler USNS Lenthall. The ship’s primary mission is to provide fuel to Navy ships at sea and jet fuel to aircraft assigned to aircraft carriers. Work performed will include preservation of ballast tanks; preservation of tank deck overhead; preservation of potable water tanks and main engine turbo overhaul. This contract includes options which, if exercised, would bring the cumulative value of this contract to $7,757,269. Work will be performed in North Charleston, S.C., and is expected to be completed by April 2010. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured with three proposals solicited and three offers received. The U.S. Navy’s Military Sealift Fleet Support Command, a field activity of Military Sealift Command, is the contracting activity (N40442-10-C-1007). ~Metro Machine, Portsmouth, Va., is being awarded a $6,234,201 modification to previously awarded contract (N00024-10-C-4401) for the maintenance and repair of USS Ponce (LPD-15). Work will be performed in Norfolk, Va., and is expected to be completed by May 2010. Contract funds in the amount of $6,234,201 will expire at the end of the current fiscal year. The Naval Ship Support Activity, Portsmouth, Va., is the contracting activity.
DTN News: Financial News TODAY January 19, 2010 ~ Japan Airlines Files For $25 Billion Bankruptcy *Source: DTN News / Reuters By Mayumi Negishi and Mariko Katsumura (NSI News Source Info) TOKYO, Japan - January 19, 2010: Japan Airlines Corp (JAL) (Tokyo:9205.T - News) filed for bankruptcy protection on Tuesday owing more than $25 billion, and vowed to slash 15,700 jobs and unprofitable routes as it tries to survive volatile fuel costs and fickle flyers.Japan Airlines President Haruka Nishimatsu, right, accompanied by Hiroshige Nishizawa, president of Enterprise Turnaround Initiative Corp. , speaks during a press conference in Tokyo, Japan, Tuesday, Jan. 19, 2010 shortly after Japan's flagship carrier filed for bankruptcy in one of the nation's largest corporate failures. Nishimatsu resigned, bowing deeply as he apologized for the company's troubles. A Japan Airlines Corp. (JAL)'s flag flies at the company's headquarters on January 19, 2010 in Tokyo, Japan. Asia's largest carrier JAL filed for bankruptcy protection and is put under the control of the state-backed Enterprise Turnaround Initiative Corporation of Japan (ETIC) for management reconstruction. JAL, Asia's largest airline by revenues and an ambassador for Japan across the world, will remain in the skies thanks to nearly 1 trillion yen ($11 billion) in state-backed support and faces a sweeping restructuring under a new board and management. Shareholders will be wiped out and creditors will forgive 730 billion yen in debt, with banks waiving 350 billion yen in loans, as part of the deal with the fund, the Enterprise Turnaround Initiative Corp of Japan (ETIC). "JAL lacked strong governance and was unable to keep up with changing times," ETIC Executive Director Akitoshi Nakamura told a packed news conference. "In a sense JAL encapsulates what is a typical problem and hurdle for Japan as a whole." Bankruptcy will only be the beginning for an airline that once symbolized "Japan Inc's" international aspirations and now faces depleted capital, rising fuel prices and shrinking passenger numbers -- all on top of hefty restructuring costs. JAL, which has now been bailed out by the Japanese government four times in the past 10 years, will replace many of its older and less fuel-efficient planes. It also faces tough decisions about foreign capital and alliances. "It's unclear how JAL will be able to grow as a business," said Yasuhiro Matsumoto, credit analyst at Shinsei Securities. "I can't see how JAL is going to build its network domestically and internationally." JAL and two core units filed for court protection from creditors in a procedure similar to Chapter 11 in the United States. Combined, the three firms had 2.3 trillion yen in debt as of the end of September, making it Japan's fourth-largest ever bankruptcy and its biggest by a non-financial firm. Shares of JAL, which have fallen more than 90 percent since the start of the month, closed flat at 5 yen after trading down 2 yen to 3 yen. They will be delisted on February 20. With a market value of about $150 million, JAL is now smaller than minor carriers Croatia Airlines (HRAR.ZA) and Jazeera Airways (Kuwait:JAZK.KW - News) and is worth less than one Boeing 747. "I thought that there was no way that JAL would fail," said Akiko Saito, a 63-year-old retiree returning from Sydney to Tokyo's Haneda Airport. "Even when the value of my JAL shares fell from 800,000 yen to below 120,000 yen, I was convinced that it would recover, and I held on to my stock." JAL bonds maturing in 2013 were priced at the equivalent of just 27.8 cents on the dollar, versus around 70 cents last month, but traders said there was little trading appetite for the bonds on Tuesday. The dollar fell to a session low against the yen on the news. The bankruptcy move could make rival All Nippon Airways Co (Tokyo:9202.T - News) Japan's new flagship carrier, but a debt-free and leaner JAL could eventually become a formidable threat for ANA, according to some analysts. Shares in ANA fell 4.2 percent after rallying to a six-month high last week. DEBT-LADEN The "tough love" for JAL by Prime Minister Yukio Hatoyama's four-month-old Democratic Party-led government signals a shift from previous governments under the long-dominant Liberal Democratic Party, which had authored the previous JAL bailouts. "What this shows is that the nation won't just take total care of a company. They've now said they'll let badly run companies fail," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments. Following similar bankruptcies by overseas airlines such as Delta Air Lines (NYSE:DAL - News) and United Airlines (NasdaqGS:UAUA - News), JAL plans to slash its 51,862 workforce to 36,201 and to cut 14 international routes and 17 domestic routes in three years. The ETIC will support the carrier with about 300 billion yen in capital. The ETIC and the Development Bank of Japan will together provide a 600 billion yen credit line. Fuel-hedging contracts may also be affected by a bankruptcy filing. JAL uses mostly Brent forward contracts and about 40 billion yen is estimated to be exposed in the event of an automatic termination, a source familiar with the matter said. JAL will also need to decide about competing aid offers from Oneworld alliance partner American Airlines (NYSE:AMR - News) and rival Delta, which wants to woo JAL to its SkyTeam group. That decision will be left to the new management, to be led by Kazuo Inamori, the 77-year-old founder of electronics maker Kyocera Corp (Tokyo:6971.T - News), who was tapped last week to become JAL's new chief executive officer to oversee its restructuring. JAL's restructuring plan also calls for increasing fuel-efficiency in its fleet, replacing all 37 of its B747-400 jets and 16 MD90s, both supplied by Boeing (NYSE:BA - News), with 33 small jets and 17 regional ones. ($1=90.43 Yen) (Additional reporting by Nathan Layne, Nobuhiro Kubo, Chris Meyers and Linda Sieg; Writing by Lincoln Feast; Editing by Jean Yoon, Tim Hepher and Elaine Hardcastle)
DTN News: Boeing Awarded Long-Term Support Contract for Australia's Wedgetail 737 AEW&C Program *Source: DTN News / Boeing (NSI News Source Info) SEATTLE, - January 19, 2010: The Boeing Company [NYSE: BA] today announced that it has been awarded a five-year In-Service Support contract for Project Wedgetail, Australia's 737 Airborne Early Warning and Control (AEW&C) program. The contract from Australia's Defence Materiel Organisation is worth approximately US$600 million.The Commonwealth of Australia placed a contract on Boeing in December 2000 for the development and supply of the 737 airborne early warning and control (AEW&C) programme, Project Wedgetail. Boeing is the prime contractor for the program and team partners include Northrop Grumman's Electronics Sensors and Systems, Boeing Australia Limited and BAE Systems Australia.Boeing Australia is responsible for providing systems engineering and leading the product support teams. BAE Systems Australia is to supply the electronic support measures and the electronic warfare self-protection systems. Quantas Airways has been awarded the contract for maintenance of the aircraft. The first two aircraft will be completed by Boeing in the USA; the remainder will be modified in Australia. Under the performance-based logistics (PBL) contract, Boeing will provide acquisition, program management, integration and engineering services. Boeing Defence Australia, a wholly owned subsidiary of The Boeing Company, will support the program with engineering, maintenance and training services and supply chain management for the Royal Australian Air Force's (RAAF) fleet of six Wedgetail AEW&C aircraft and ground segments. Northrop Grumman, as a subcontractor on the Boeing-led program, will support the aircraft's Multirole Electronically Scanned Array radar. The contract is expected to create more than 100 jobs in Newcastle, Australia, while providing continued and new employment for more than 100 personnel in Queensland, Australia. This PBL agreement offers the RAAF maximum aircraft readiness at the lowest possible cost. Boeing is the industry leader in PBL contract execution. "Establishing a robust support program for the Wedgetail aircraft will help ensure the long-term success of the AEW&C system," said Maureen Dougherty, AEW&C vice president for Boeing. "We are offering an enterprisewide solution by tapping into the support infrastructure expertise of Boeing Commercial Airplanes and pairing that with Boeing Defense, Space & Security's extensive work with large sustainment defense contracts, technical know-how and experience with airborne surveillance and battle management systems." Project Wedgetail consists of six 737 AEW&C aircraft and associated ground support segments, such as the Operational Flight Trainer, Operational Mission Simulator and Mission Support System. All of these program elements are located in the AEW&C Support Centre at RAAF Base Williamtown in Newcastle. Boeing delivered the first two Wedgetail aircraft to the RAAF on Nov. 26, which allowed its flight, mission and maintenance crews to begin familiarization training. Based on the Boeing Next-Generation 737-700 commercial airplane, the 737 AEW&C aircraft is designed to provide airborne battle-management capability with an advanced multirole electronically scanned radar and 10 state-of-the-art mission crew consoles that are able to track airborne and maritime targets simultaneously. The mission crew can direct offensive and defensive forces while maintaining continuous surveillance of the operational area. Boeing also has AEW&C systems in production for Turkey and the Republic of Korea. A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 70,000 employees worldwide.
DTN News: Boeing, Oto Melara Sign Contract For SDB Co-production In Italy *Source: DTN News / Boeing (NSI News Source Info) ST. LOUIS, - January 19, 2010: The Boeing Company [NYSE: BA] has signed a $34 million contract with Italian defense company Oto Melara to co-produce the Small Diameter Bomb Increment I (SDB I) weapon system for the Italian Air Force. "We are proud to team with Oto Melara to bring SDB and its precision, low-collateral-damage capabilities to the Italian Air Force," said Debra Rub, Boeing Weapons vice president. "SDB has the potential to be the weapon solution of choice for many of our friends and allies around the globe. This agreement lays the foundation for continued growth in the international marketplace." Under the terms of the contract, Boeing will provide major SDB I mechanical and electrical components and test equipment for production of 500 tactical weapons, 50 four-place weapon carriages, and associated support equipment. In addition, Boeing will provide technical assistance in establishing a production facility in Italy. Oto Melara will provide various components and complete final weapon assembly and testing. "With the SDB I program, we have the opportunity to support again the needs of the Italian Air Force with co-production in Italy. Our decennial relationship with Boeing has had and will have the scope to provide state-of-the-art precision weaponry and to manage directly in Italy all needs of our Italian customer," said Carlo De Rossi, head of Oto Melara's Breda Meccanica Bresciana unit. The SDB I co-production project follows previous joint collaborations between Oto Melara and Boeing, including production of about 1,000 Joint Direct Attack Munition (JDAM) tail kits for the Italian Air Force. SDB I is a 250-pound class, low-cost and low-collateral-damage precision strike weapon. It incorporates a steel case and penetrating blast-fragmentation warhead. The weapon's smaller size, coupled with its four-place carriage, enables more weapons to be carried on each aircraft to improve mission effectiveness and reduce the number of sorties required per mission. Oto Melara SpA is a company of the Finmeccanica Group, Italy's major defense industry player, and one of the world's biggest aerospace and defense groups with 73,000 employees and revenue of 15.1 billion euros. A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 70,000 employees worldwide.
DTN News: Boeing Gets Initial India Request For 6 Refueling Planes *Source: DTN News / Int'l Media By Nikhil Gulati (NSI News Source Info) NEW DELHI, India - January 19, 2010: Boeing Co. (BA) said Monday it has received initial requests for information from India's federal government for supplying six refueling tankers, in what is likely to further expand the U.S. aircraft maker's presence in this burgeoning market for defense equipment. The first Boeing KC-767 Tanker destined for the Italian Air Force achieved a historical milestone March 5, 2007, when it successfully extended its aerial refueling boom and transferred fuel to a B-52 for the first time in flight. The tanker is currently being developed for use by the Italian and Japanese air forces, who have ordered four tankers each. Financing of the development of the aircraft, over $1 billion, has been borne by Boeing, in that it hoped to get major orders from the U.S. Air Force. "We will do a detailed evaluation of the request for interest from the Indian government, study our inventory, and accordingly inform the government," Vivek Lall, vice president and country head of defense and space and security at Boeing India, told reporters. Lall didn't elaborate on the potential value of the contract. "We will have to study what we can supply and then only we can talk about the value of the order." Earlier this month, Boeing said that the U.S. government has received a letter of request from India's defense ministry and the Indian Air Force on the potential acquisition of 10 C-17 Globemaster III advanced airlifters. India, one of the world's top importers of arms, wants to buy the new airlifters to modernize its fleet of Russian-built AN-32 and IL-76 airlifters. The country is also in the process of acquiring 126 combat planes for an estimated $10 billion. Boeing is among six companies, including Lockheed Martin Corp. and Dassault Aviation SA, who are vying for the contract--billed as the biggest fighter jet deal since the 1990s. Boeing has estimated that it could bid for potential defense deals in India worth about $31 billion between 2009 and 2019. "This number is going to grow as India tries to protect its borders," said Dinesh Keskar, president of Boeing India. "Our estimates are for segments which we can address such as fighter and attack aircrafts, heavy lift cargo aircrafts, missiles, airborne early warning and training systems." New Plane Repair Center, 787 Dreamliner Delivery Boeing Co. will start building a $100 million aircraft maintenance, repair and overhaul center in a joint venture with state-run carrier, Air India, this year, Keskar said. "We had deferred the construction of the MRO (center) since delivery of the 787 was being deferred," Keskar said. "Now, we are on track to deliver the first 787 Dreamliner to Air India by the second quarter of 2011." The Dreamliners were originally scheduled to be delivered in late 2009. Air India has ordered 27 of the twin-aisle, long-haul aircraft. Keskar said the MRO center, being built in the western Indian city of Nagpur, will primarily service Air India's fleet of 787 and 777 planes. Keskar said Boeing will take about two to two-and-a-half years to build the repair center. "When Air India gets the plane (787), it won't require maintenance for at least two years, so we are talking about 2013 (when the center will be operational)."