November’s Billion Dollar Contracts

During November a number of contracts valued at over a billion dollars were awarded for a variety of services such as foreign military sales, sitcom products and services, military training and simulation support, and more. Let’s revisit some of the biggest contracts from the last month.

• Saudi Arabia purchasing precision-guided munitions from Raytheon & Boeing for $7B

• The U.S. Army opened solicitation for $82B LOGCAP V contract

• The General Services Administration awarding 61 firms positions on a $50B Alliant 2 IT GWAC

• Poland purchasing $10.5B IBCS-Enabled Patriot Missile System

• GlobeComm landing a spot on a $2.5B GSA Satcom IDIQ

• Raytheon landing a $2.87B Army training & simulation contract

• DISA awarding 20 companies positions on a $17.5B IT contract

On Nov. 23, Saudi Arabia announced that it will be purchasing $7B worth of precision-guided munitions from Boeing and Raytheon. According to sources, the deal is part of a potential $110 billion weapons sales agreement signed by President Trump and King Salman bin Abd al-Aziz Al Saud in May. The proposed agreement has a 10-year term and that the transportation itself may take years to complete. Despite the deal’s announcement, weapons sales to Saudi Arabia and other Gulf Cooperation Council nations may be delayed by Congress due to the current conflict in Yemen.

On Nov. 20, the U.S. Army issued a request for proposals for a potential 10-year, $82 billion logistics and facility support services contract for geographical and service component combatant commands. The FedBizOpps notice stated that the Logistics Civil Augmentation Program V (LOGCAP V) contract has a base term of five years and an additional five option years, and covers engineering, “setting the theater” support, transportation, base camp services, supply operations and maintenance services. The Army Contracting Command plans to award as many as six IDIQ contracts by September 13, 2018 under LOGCAP V. Responses to the RFP are due by January 22, 2018. LOGCAP IV incumbents include DynCorp, KBR, and Fluor.

The General Services Administration announced on Nov. 17 that it had awarded 61 companies with positions on a potential 10-year, $50 billion government-wide acquisition contract for IT products and services. The award is for the unrestricted portion of the Alliant 2 GWAC, which has a base term of five years and an additional five option years. The scope of the Alliant 2 contract is quite wide, including services related to big data, cloud computing, cybersecurity, agile development, biometrics and identity management, sensors and radio frequency identification, data center consolidation, shared IT services, web analytics and hosting, software development, IoT and related IT support services. To view the full list of awardees, please click here.

Also occurring on Nov. 17 was Poland receiving approval from the State Department to purchase the third configuration of the Patriot missile system with the Integrated Air and Missile Defense Battle Command System and related equipment from the U.S. government under a $10.5 billion foreign military sales agreement. Raytheon, Lockheed Martin, and Northrop Grumman will be the prime contractors in the FMS. Poland intends on using the IBCS-enabled Patriot missile platform to bolster its missile defense capabilities, contain regional threats and support its territorial integrity defense efforts.

On Nov. 6, GlobeComm announced that it had secured a spot on a potential 10-year, $2.5 billion GSA contract vehicle for managed network systems which utilize commercial satellite communications technology platforms and services. The Complex Commercial SATCOM Solutions contract seeks to assist government agencies with accessing products and services necessary to configure, design, implement, install, maintain and operate satcom systems. Dwight Hunsicker, EVP and general manager of GlobeComm’s government solutions unit, said that GlobeComm will partner with the GSA to help address customer agencies’ wide area communications requirements via the CS3 contract. Hunsicker added that GlobeComm will be providing communications infrastructure integration, global network connectivity and lifecycle support services under the CS3 program.

Raytheon announced on Nov. 2 that it received a potential two-year, $2.87 billion contract to provide integrated life cycle support for the U.S. Army’s live, virtual and constructive training platforms. In a release from the DoD it was detailed that Raytheon will be responsible for providing support training aids, simulators, tools and will support simulation efforts of the Army, combatant commanders and other DoD customers. The Army Contracting Command will be responsible for determining funding and work locations once each order is issued under the performance-based hybrid contract.

Also on Nov. 2, the Defense Information Systems Agency awarded 20 companies with spots on a potential 10-year, $17.5 billion contract vehicle for IT products and services for modernization efforts at the DoD and other federal agencies. The Encore III IDIQ contract, which has a base term of five years with five option years, received 72 bids for its full and open tracks. To view the full list of awardees, please click here.