Acquisition headlines (12/19 – 12/25/2022)

L3Harris Technologies to acquire Aerojet Rocketdyne for a value of $5.7 billion, after Lockheed Martin failed to do so. (Fl360Aero) “the acquisition of Aerojet would give L3Harris a greater footprint in civil space, strategic defense systems and precision munitions.”

  • Context of criticism [of LM deal] was, Raytheon and Lockheed both build missiles for the U.S. military and American allies, and Aerojet Rocketdyne is a key supplier to both firms. While, Lockheed’s orders account for about 34 percent of Aerojet’s sales in 2020; Raytheon’s, touched 17 percent.

Space acquisition chief: DoD will buy small satellites, at fixed prices. (Space News) “Speed in space acquisition is a very simple formula,” Calvelli said. “You build small, you use existing technology and reduce non recurring engineering. You take advantage of commercial capabilities and you execute.”

  • Don’t be afraid to use fixed price contracts,” he insisted. “NASA is now doing more fixed price contracting. The National Reconnaissance Office has talked about doing more fixed price contracts. Now the Space Force needs to be doing more fixed-price contracting.”

The omnibus appropriations act and the curious incident of the dog that doesn’t bark. (AEI) Bill Greenwalt: ” Think about it, barely a peep or a bark has been heard over the last several decades about any crippling effects CRs have on the rest of government. It is important to unpack this deafening silence.”

  • Understanding the why begins with the simple case that CRs just do not impact domestic agencies the way they impact defense.
  • Appropriations law and the PPBE budget process have uniquely for defense been the source of draconian restrictions on starting new efforts, a plethora of budget accounts, and limitations on the ability to move money around… Domestic programs have few if any of these underlying issues.

Mayhem hypersonic strike-recon jet contract awarded to Leidos. (The Drive) “Leidos’ new contract, which was awarded by the Air Force Research Laboratory (AFRL) is a “single award, indefinite-delivery/indefinite-quantity” deal with a $334 million ceiling.”

  • This program is focused on delivering a larger class air-breathing [scramjet] hypersonic system capable of executing multiple missions [ISR and strike] with a standardized payload interface.
  • … expected to be completed by Oct. 15, 2028.
  • Mayhem has been tied in the past to the development of advanced high-speed engine technology, including turbine-based combined cycle (TBCC) and dual-mode ramjet designs.

DoD issues $24.8 critical minerals award to Perpetua Resources. (DoD) “The Office of the Assistant Secretary for Industrial Base Policy, through its Defense Production Act (DPA) Investments Program and the Air Force Executive Agent, issued its first critical minerals award using Ukraine Supplemental Appropriations funds to Perpetua Resources Idaho, Inc. (“Perpetua”) to secure an American source of critical minerals for missiles and munitions.”

  • to complete environmental and engineering studies necessary to obtain a Final Environmental Impact Statement, a Final Record of Decision, and other ancillary permits.
  • Perpetua’s Stibnite-Gold Project produced antimony trisulfide for the U.S. ammunition industrial base during World War II and the Korean War, and it is the sole domestic geologic reserve of antimony.

Legal battle over Army vehicle highlights contracting barriers. (Defense News) “The lawsuit is between Keshik Mobile Power Systems, a subcontractor, and Point Blank, a prime contractor pursuing the Army’s Optionally Manned Fighting Vehicle… [Keshik] and Point Blank sparred over funding to advance its technology, according to court testimony, and the fight ultimately ended with Point Blank suing Keshik, accusing the subcontractor of attempting to break their contract and compete against Point Blank.”

  • [Keshik] focused on a power control technology that allows dissimilar power producers and power consumers to connect and work together, a Keshik official said.
  • Keshik is named after the imperial bodyguards of Mongolian leader Genghis Khan.
  • “Keshik is a company that had never had a penny of revenue and had no paid employees at the time.” … Keshik needed cash right away to get to work, but the government payments weren’t expected for several months. [Leading to Keshik to seek a way out of their agreement]
  • In August, the court ordered that Keshik could not compete directly or indirectly against Point Blank in the OMFV program or solicit subcontractors to work on any proposal for future OMFV work… by the August hearing date, Point Blank had already replaced Keshik.

Elliot Leigh appointed as new AFWERX director. (Potomac Officers Club) “In his new role, Leigh will oversee the implementation of new initiatives under AFWERX 3.0, which was launched on Dec. 14… According to AFRL, AFWERX 3.0 will provide more funding opportunities to ensure innovative ideas are supported by government resources. “

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