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Gov't Contracts Of The Month: N95s, Navy Aircraft, Space

By Sarah Martinson
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Law360 (May 1, 2020, 2:35 PM EDT) -- As the novel coronavirus rages on, billions of dollars have been infused into the economy through medical supply contracts and disaster relief efforts. Megadeals were also awarded for Navy aircraft and space sensors.

Here are Law360's top picks for government contracts awarded in April, along with details about an $11 billion defense contract on the horizon:

Ventilators, N95s and Alternate Care Facilities

Multiple billion-dollar contracts, in addition to smaller deals, were awarded in April for the manufacturing of ventilators, N95 masks and alternate care facilities.

The U.S. Department of Health and Human Services alone was given access to $100 billion through the Coronavirus Aid, Relief and Economic Security Act, or CARES Act, that will be disbursed to hospitals overwhelmed by the COVID-19 pandemic, such as those in New York, and to pay for uninsured patients who need coronavirus treatment.

The department awarded $2.5 billion in contracts under the Defense Production Act — a law created during the Korean War to ramp up private manufacturing of medical equipment. Nine companies will produce more than 200,000 ventilators, including more than 70,000 devices from General Motors Inc. and Royal Philips, to be added to the national stockpile by year's end.

In addition to ventilator production, numerous multimillion-dollar contracts were awarded to companies to manufacture surgical masks and N95 respirators, including a $76 million deal to 3M Co., a $24.9 million deal to Hanesbrands Inc. and a $34 million deal to Honeywell International LLC.

The Army Corps of Engineers also awarded a $10 billion contract modification to AECOM and nine other companies for "construction, design and alteration of existing public facilities into temporary alternate care facilities."

The Corps' commander, Lt. Gen. Todd Semonite, said on April 8 that 40 to 50 temporary care facilities could be built over the next several months depending on the rise of COVID-19.

"The last thing we want to do is have someone die for lack of a bed space," Semonite said.

Navy Hands Out Billions for Warship, Aircraft and Maintenance

The U.S. Navy awarded four billion-dollar contracts in April for the production of a LPD Flight II warship and 18 P-8A Poseidon aircraft in addition to aircraft maintenance and production.

Huntington Ingalls Industries received a $1.5 billion contract to build a 684-foot-long by 105-foot-wide LPD Flight II warship that will support Marine Air Ground Task Force missions.

Brian Cuccias, president of Ingalls Shipbuilding, said in an April 3 statement that the warship will be the 15th of its kind that the company has constructed.

"We are all proud to be building these great ships and will continue to deliver the most survivable and affordable ships possible for our customers and our nation," Cuccias said.

Boeing Co. won a deal also worth $1.5 billion to manufacture 18 P-8A Poseidon aircraft that will be deployed in South Korea and New Zealand. The aircraft are a derivative of Boeing 737 Next-Generation planes equipped with maritime weapons.

The Navy allotted Erickson Inc., F3 Logistics LLC and 40 other businesses spots in its $6.1 billion multiaward contract program, referred to as KRACEn, for aircraft maintenance and awarded a $7.1 billion contract to 28 companies, including BAE Systems, Boeing, Honeywell and Raytheon Technologies Corp., for war aircraft production.

Kevin Cochie, Erickson's vice president of defense and national security, said in an April 21 statement that the company has previously done work on the Navy and Marine Corps' H-53 fleet.

"We hope to build on that reputation and expand our service offerings to other platforms," Cochie said.

Army Spends Billions on Management Services, Installation Kits

DRC Emergency Services LLC, ECC Constructors LLC and Crowdergulf LLC won a $3.5 billion fixed-price deal from the U.S. Army for regional debris management that is expected to be completed by March 2025.

Maryland-based ACE Electronics Defense Systems LLC secured a small-business contract worth $2 billion to manufacture Army installation kits to be delivered to the Red River Army Depot in Texas.

Air Force Awards Contracts for Disaster Relief and Missiles

Seven companies, including DynCorp International LLC, Fluor Intercontinental Inc. and Kellogg Brown & Root Services Inc., were awarded slots in the Air Force Contract Augmentation Program V, or AFCAP V, for emergency humanitarian relief that has a combined value of $6.4 billion. The contract is a multiple award deal for emergency construction, logistics and planning.

KBR provided services to the Air Force under a previous iteration of the contract program, including rebuilding Tyndall Air Force Base after it was damaged by Hurricane Michael in 2018.

"We are honored to serve the Air Force through this contract — no matter how demanding the environment might be," said Byron Bright, KBR president of government solutions U.S., in an April 15 statement.

AFCAP branch chief Wayland Patterson said in an April 24 statement that the contract may be used for COVID-19 response efforts for the armed forces.

"We are ready and prepared for whatever could be needed for COVID-19," Patterson said.

The Air Force last month also awarded Raytheon a contract expected to be worth $10 billion to develop a long-range standoff weapon, eliminating Lockheed Martin Corp. from the project.

Raytheon and Lockheed were both awarded contracts for the design stage of the project, referred to as the Technology Maturation and Risk Reduction phase, and the Air Force decided to proceed with Raytheon's design, according to the agency.

Air Force Nuclear Weapons Center commander Maj. Gen. Shaun Morris said in April 17 statement that contracting both Lockheed and Raytheon for the design phase "enabled us to select a high-confidence design at this point in the acquisition process."

"Lockheed Martin has been an excellent contractor and partner throughout the TMRR effort and this pivot to Raytheon does not represent a lack of effort or commitment on their part," Morris said.

Space Force Awards $1.2B Contract for Sensor Maintenance

Florida-based L3Harris Technologies won a contract worth $1.2 billion over 10 years for the maintenance of ground-based space sensors. The Maintenance of Space Situational Awareness Integrated Capabilities, or MOSSAIC, contract is the continuation of the Systems Engineering and Sustainment Integrator program that L3 Harris landed in 2002.

L3 Harris President of Space and Airbourne Systems Ed Zoiss said in an April 1 statement that the company has wide-ranging technological capabilities making it equipped for this contract.

"Space as a warfighting domain has a complex and interdependent system supporting it from the ground, air and space," Zoiss said.

DOJ Contracts Support Services for $1.3B

Virginia-based Forfeiture Support Associates LLC, doing business as FSA Federal, won a $1.3 billion deal that started April 1 to provide 14 agencies within the U.S. Department of Justice with administrative support services.

FSA is a joint venture between Science Applications International Corp. and Amentum that was created to support DOJ agencies, such as the U.S. Drug Enforcement Administration and the FBI, and the department's Asset Forfeiture Program.

FSA said it launched a third version of the company to coincide with being awarded an Asset Forfeiture Program support contract for the third time.

"The FSA 3.0 approach will help DOJ effectively accomplish its mission to disrupt dangerous criminal organizations that threaten communities nationwide," FSA managing director George Mendiola Jr. said in a statement.

Coming Soon

A deal to keep an eye on is an $11 billion missile interceptor contract coming out of the DOD's Missile Defense Agency. The Next Generation Interceptor, or NGI, Program will cover the design, development and fielding of 20 interceptors to destroy incoming ballistic missiles.

Boeing, Lockheed, Northrop Grumman Corp. and Raytheon are all expected to be potential bidders, having participated in an industry day for the NGI program, according to a notice posted last year by the MDA.

--Additional reporting by Daniel Wilson and Jeff Overley. Editing by Orlando Lorenzo.

For a reprint of this article, please contact reprints@law360.com.

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