GovCon Insights September 7, 2011: USPS Seeking Contract Cuts; DOD Contractors Look to International Markets; Post-9/11 Contracting

Focus: Defense Contractors Seeking International Markets
Lockheed eyes growth drivers [Reuters] – Lockheed Martin CEO Robert Stevens said at the Aerospace and Defense Summit in London that the company is seeking to raise its level of international sales to 20 percent to offset cuts in U.S. defense spending. He also indicated that progress is being made on the F-35 and that the program will continue to expand.

Western arms makers eye emerging markets [Reuters] – Richard Fenning, CEO of British defense consultancy Control Risks, feels China, Russia and India are the future of the defense contractor business. BAE Systems CEO Ian King said at the Aerospace and Defense Summit that traditional markets like Britain and the United States cannot be counted on any more.

Focus: Post-9/11 Contracting
How private firms cashed in on 9/11 [Hindustan Times/Guardian] – John Mueller, a professor at Ohio State University, feels that the national security industrial complex created after 9/11 has been a disaster that no one is talking about. An example of the issues created by these conflicts of interest are Army civilian logistics professional Charles Smith being transferred from a multibillion dollar KBR contract because he threatened to block payments until all of the company’s spending was accounted for.

The ‘Top Secret America’ Created After Sept. 11 [NPR] – Dana Priest, co-author of the book Top Secret America: The Rise of the New American Security State, discussed the unwieldy “terrorism industrial complex” spawned after 9/11 in an NPR interview. She notes that government intelligence agencies have lost many good employees to higher-paying contract jobs and that a new industry has sprung of contractors conducting security clearances for other contractors.

9/11 ten years on: ex-Taliban fighter’s journey from AK-47s to US contracts [Guardian] – Mir Tohmas Wazir went from being a frontline Taliban fighter on 9/11 to owning a construction company today that derives most of its revenue from U.S. government contracts. He now receives threats from the Taliban and had his former British military translator quit as an office manager because of the dangers in the country.

Post-9/11 Technology Brings Exoskeletons, Laser Cannons to 21st-Century U.S. Military [Slide Show] [Scientific American] – A photo gallery of new unconventional military tools in a post-9/11 world. The gallery includes Boston Dynamics’ $32 million pack robot and Lockheed Martin’s human universal load carrier exoskeleton.

Energy innovation: From a garage to the Pentagon [CNN Money] – When the Marines invited 13 companies to pitch their latest battlefield solar and fuel efficiency technology last month, large renewable energy companies were absent from the guest list. Matt Campbell, utility product director at SunPower, notes venture capital funds have largely replaced large company labs in cutting-edge science investments.

GovWin Recon Weekly Roundup, w/e Sept. 2 [GovWin] – A roundup of last week’s top government contracting stories include the Commission on Wartime Contracting in Afghanistan and Iraq’s final report [PDF] to Congress and reactions and details of contractor involvement in the Central Intelligence Agency rendition program. Also, find out the most popular Recon story from each day.

Focus: Defense Contractor Relocations
C Products Defense to hire 100 [Gulf Coast Business Review] – Connecticut-based defense contractor C Products Defense is relocating its manufacturing and distribution division to Manatee County, Fla., and will hire 100 new workers. Fifteen of the employees will be added this year, and 35 more in 2012.

Blackhawk Management Corp. relocating its ‘primary operations’ from Houston to Huntsville [Al.com] – NASA and DOD contractor Blackhawk Management is moving its primary operations from Houston to Huntsville, Ala. The company proves logistics and maintenance management, weapon systems reset and sustainment, information technology and training.

VA national contracting oversight system inadequate, IG says [Federal Computer Week] – A Veterans Affairs inspector general report [PDF] finds that the required Electronic Contract Management System (eCMS) is underutilized and inadequate for oversight. The audit suggests controls be established to monitor the use of the eCMS and performance requirements be established to hold contracting officers accountable for using the system.

GovWin Opportunity Review, September 6, 2011: Small Biz for Lockheed Training Work; Tips for Responding to Opps, End Agency Data [GovWin] – This week’s new opportunities include training work for Lockheed Martin and 8(a) firms to provide an efficient and reliable means of obtaining non-personal temporary contract labor support. Also learn tips for responding to GovWin opportunity posts and see a pie chart of opportunities by end agency customer.

US Companies Get Back To The Business Of Borrowing [Wall Street Journal/Dow Jones Newswires] – Lockheed Martin is among the major companies returning to the primary bond market. Bond buyers are attracted to the company because it is seen as unlikely to default and has posted consistently higher earnings and strong credit metrics.

Xe Services Deputy GC is Armed and Ready for Compliance Battles [Law.com] – Xe Services has hired Suzanne Folsom as its first chief regulatory/compliance officer and deputy general counsel. She notes that the defense industry has to hire people of knowledge and expertise to counter increased regulatory scrutiny.

U.S. engineer’s remains found in Afghanistan [CBS News] – James W. “Will” Coker, an Army Corps of Engineers construction contractor, was found beheaded in Kabul. He had been missing since September 2.

U.S. Embassy to Romania moves to new headquarters in Baneasa area of Bucharest [Romania Business Insider] – American International Contractors with the help of Romanian contractors built the new U.S. Embassy in Bucharest. The building’s atrium features a mural by U.S. artist Maggie Michael and Romanian artists.

DOD Contract Announcements
Contract Announcements for September 6, 2011 [Defense.gov] – Lockheed Martin received a maximum $9.4 million Navy modification for flight test instrumentation for the F-35 Joint Strike Fighter for the Netherlands, while Raytheon took a $7.4 million delivery order for 36 LAU-116B/A launchers in support of FA-18 E/F and EA-18G aircraft. Small business Oldenburg Group won a $25.4 million indefinite-delivery/indefinite-quantity (IDIQ) contract for manufacturing and installation support of slewing boat davits for LSD 41 and LSD 49 class Navy ships, while fellow small business SupplyCore took a $45 million IDIQ Defense Logistics Agency contract for maintenance, repair, and operations supplies and related services for the U.S. Central Command region. See the full announcement for more details and other awards. 

Federal Register Updates
Procedures for Protests and Contracts Dispute – The Federal Aviation Administration has updated, simplified, and streamlined current regulations for bid protests and contract disputes. The changes include a voluntary dispute avoidance and early resolution process.

Federal Acquisition Regulation; Submission for OMB Review; Architect-Engineer Qualifications (SF 330) – DOD, NASA and the General Services Administration are asking the Office of Management and Budget to review and approve an extension of a previously approved information collection requirement for the Architect-Engineer Qualifications form (SF 330). The comment period runs until October 7.