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Valiant’s Dan Corbett Talks ‘Fierce’ GovCon Competition in Video Interview
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Valiant’s Dan Corbett Talks ‘Fierce’ GovCon Competition in Video Interview

Despite a relative slowdown in the last three to six months, the GovCon industry has seen a steady increase in consolidation and competition in recent years. Valiant Integrated Services CEO Dan Corbett expects the trend to continue. 

In a new video interview with Executive Mosaic, Corbett revealed that the recent slowdown in the market can be attributed to factors like inflation, potential recession and higher interest rates. Still, he said the GovCon market will continue to grow, and competition will intensify.

“There is a race for size. When you look at the government services industry, you see these massive ‘mega services’ businesses being set up, and I do see that [continuing],” Corbett said during the interview. “There has been highly fierce competition for assets in the market.”

However, the race for size and assets does have a silver lining. Corbett said as these larger businesses streamline, smaller and mid-sized businesses can leverage what’s being shed.

“Within the consolidation of some of these ‘mega services’ firms, we’re seeing portfolio shaping in which they’re looking to shed some of the assets they’ve purchased, so we see that as an opportunity,” revealed Corbett.

To hear more of Dan Corbett’s market predictions and to learn more about Valiant’s growth strategies in today’s highly competitive industry, watch his full video here. Keep up with insights from the leaders of GovCon by subscribing to Executive Mosaic’s YouTube channel!

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DIU Reports Record-Breaking Commercial Tech Transitions in FY 2022; Mike Madsen Quoted
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DIU Reports Record-Breaking Commercial Tech Transitions in FY 2022; Mike Madsen Quoted

The Defense Innovation Unit transitioned 17 commercial platforms to Department of Defense and civilian agency users in fiscal year 2022, up from eight transitions the previous year.

The figure is equivalent to contract awards valued at $1.3 billion.

According to DIU’s annual report for FY 2022, DOD’s innovation arm issued 36 solicitations, reflecting a 38 percent rise from the previous fiscal year, and received 1,636 proposals from commercial offerors.

During FY 2022, the organization also awarded 81 other transaction prototype contracts valued at approximately $204.8 million combined, a 12.5 percent increase from the prior-year period of 72 OT prototype contracts.

DIU took an average of 142 business days to award a prototype OT contract and transitioned 52 prototype contracts into follow-on contracts across the department, reaching a total value of $4.9 billion.

The Pentagon’s innovation arm is advancing 103 active projects across six technology areas: autonomy; artificial intelligence and machine learning; cyber; energy; human systems; and space, according to the report.

“As we move further along into FY 2023, DIU remains dedicated to accelerating commercial solutions to our DoD and U.S. government partners, strengthening our national security innovation base by lowering the barriers to entry and providing recurring revenue to non-traditional companies,” said Mike Madsen, director of DIU and a previous Wash100 awardee.

Madsen will deliver the morning keynote address at the upcoming 9th Annual Defense R&D Summit, hosted by the Potomac Officers Club. The event will be held on March 23 at Falls Church Marriott Fairview Park in Virginia. You can register here.

DIU Reports Record-Breaking Commercial Tech Transitions in FY 2022; Mike Madsen Quoted
Top Government Contracts Won by BAE Systems
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Top Government Contracts Won by BAE Systems

Photo by ames Copeland from Shutterstock.com

BAE Systems is a global defense, aerospace, and security company known for its cutting-edge innovation, commitment to developing new technologies, and top-of-the-line capabilities to meet its customers’ changing needs.

Find out about BAE Systems’ top government-awarded contracts here.

1. BAE Systems To Supply Advanced, Next Generation GPS receivers

Pentagon for GPS Receiver Services

Photo from Overdefense.com

  • Contracting Activity: U.S. Army
  • Value: $325 Million
  • Contract type: Firm-fixed-price, Multiple
  • Contract Date: May 2021

BAE Systems worked on a $325.5 million contract that supplies the U.S. military and its allies with the next-generation GPS satellite receiver equipment. Under this multi-year contract, BAE Systems will provide Common GPS Modules (CGMs) compatible with the sophisticated M-Code signal or military code. The Defense Logistics Agency (DLA) requires BAE Systems to manufacture the hardware and manage the inventory.

Secure PNT (position, navigation and timing) is a crucial part of military operations involving aircraft ships, precision-guided munitions and land vehicles. The U.S. military heavily relies on GPS to fully operate.

2. BAE Sytems To Continue Providing Hardened Military GPS Modules for the DLA

Bae Systems Awarded; Hardened Military GPS Modules for the DLA

Photo from BAE Systems Official Website

  • Contracting Activity: Defense Logistics Agency (DLA)
  • Value: $316 Million
  • Contract type: Firm-fixed price
  • Contract Date: December 2021

BAE Systems has been awarded a contract worth $316 million as a follow-up contract to the previously awarded advanced M-Code GPS receivers. To build on the previous contract, the Defense Logistics Agency awards this contract to BAE Systems and ensure that GPS receivers are equipped with anti-jamming and anti-spoofing capabilities. Hardening GPS receivers will allow the military to use them even in GPS-denied environments.

3. BAE Systems Clinched a Contract to Repair The Guided Missile Destroyer USS Ross

U.S. Navy USS Ross Naval Ship Modification Services

by Kurtis Jacques from Shutterstock.com

  • Contracting Activity: U.S. Navy
  • Value: $108 Million
  • Contract type: IDIQ, Firm-fixed
  • Contract Date: April 2022

BAE Systems was awarded a contract worth nearly $108 million to repair the guided-missile destroyer USS Ross. In fulfilling this contract, BAE Systems will provide maintenance and support to modernize the berthing and dining spaces and enhance the ship’s main propulsion system. BAE Systems will also maintain the hull, the ballast and fuel tanks, and the superstructure above the deck.

The deal has a maximum budget of $123.8 million if all options are exercised. The ship will be able to operate for an additional 10 years after the maintenance is finished.

4. BAE Systems To Provide Ship Maintenance and Modernization for the U.S. Navy

Ship Maintenance and Modernization for the U.S. Navy Modification Services

from BAE Systems Official Website

  • Contracting Activity: U.S. Navy
  • Value: $294.7 Million
  • Contract type: Multiple-award contract, indefinite-delivery/indefinite-quantity
  • Contract Date: April 2022

BAE Systems won a $294.7 million contract to drydock the USS Kearsage at the BAE Systems’ Norfolk shipyard. The maintenance and modernization required in this agreement require BAE Systems to perform extensive hull, tank, and mechanical processes, rehabilitate all crew and embarked Marine living compartments on the ship, and inspect its boilers. The vessel will be available for maintenance beginning in April 2023.

The USS Kearsage is a 29-year-old 843-foot-long battleship that carries up to 1,900 combat-ready marine and army elements. In modernizing this amphibious assault ship, BAE Systems are able to showcase its expertise with ships of the same class, while also providing its shipyard and supply base with job stability.

5. Support for Intercontinental Ballistic Missiles with the U.S. The Air Force

Intercontinental Ballistic Missiles with the U.S. The Air Force Warfighters Site

Photo from airforce-technology.com

  • Contracting Activity: U.S. Air Force Nuclear Weapon Center
  • Value: $12 Billion
  • Contract type: Cost-plus-award-fee
  • Contract Date: June 2022

BAE Systems was awarded a $12 billion contract to continue its eight-year $534 million agreement to engineer the U.S Air Force’s intercontinental ballistic missiles.

The Integration Support Contract (ISC 2.0) has a primary role of supporting the government as the leading systems integrator. BAE Systems will also assist in engineering and integrating the Intercontinental Ballistic Missile (ICBM) weapon system.

6. High-Performance Computing Centers in the U.S. Army Corps

Research: High-Performance Computing Centers in the U.S. Army Corps Department Site (Sensitive Information)

Photo by Gorodenkoff on Shutterstock.com

  • Contracting Activity: U.S. Army
  • Value: $699 Million
  • Contract type: IDIQ
  • Contract Date: July 2022

BAE Systems won a $699 million contract to provide operations, maintenance and program-wide support, enabling the Department of Defense to conduct valuable research and development, test and evaluation and other engineering activities.

Particularly, BAE Systems will assist the Defense Supercomputing Resource Center (DSRC) by providing high-performing computing capabilities such as high-speed network communications and computational science. This IDIQ contract will run five years as part of the High Performance Computing Modernization Program (HPCMP).

7. BAE Systems To Build Cold Weather All-Terrain Vehicle

United States Government; Cold Weather All-Terrain Vehicle Services- Official Integration

Photo from BAE Systems Official Website

  • Contracting Activity: U.S. Army
  • Value: $278 Million
  • Contract type: Firm-fixed-price
  • Contract Date: August 2022

The US Army has designated BAE Systems to build its new Cold Weather All-Terrain Vehicle with an estimated $278 million overall funding.

The Cold-Weather All-Terrain Vehicle will be designed to perform in the Arctic and under extreme cold weather conditions. It will also be available for various other functions, including general purpose, cargo, casualty evacuation, and command and control missions.

8. Surface Combat Systems Center Support Contract with the United States Navy

United States Government; Surface Combat Systems Center Support Contract with the United States Navy

Photo from The Defense Post

  • Contracting Activity: U.S. Navy
  • Value: $143 Million
  • Contract type: IDIQ
  • Contract Date: October 2022

BAE Systems has been awarded a five-year $143 million contract by the Naval Surface Warfare Center Dahlgren Division to provide management, engineering, maintenance, and IT support services to the Surface Combat Systems Center in Virginia.

Under this agreement, BAE Systems’ role encompasses all critical activities and engineering on the code applications used for Surface Navy checking. It also includes the preparation, and assistance of implemented surface combat systems, development systems in warfare system integration, interoperability, and at-sea testing and drills.

9. BAE Systems To Provide Maintenance to the U.S. Army Bradley Vehicles and M993 MLRS Carriers

Mission: BAE Systems Maintenance to develop the U.S. Army Bradley Vehicles and M993 MLRS Carriers

Photo by Nikon D3200 from Pixabay

  • Contracting Activity: U.S. Army
  • Value: $383 Million
  • Contract type: Modification to an existing contract
  • Contract Date: October 2022

The U.S. Army awarded BAE Systems a five-year, $383 million contract requiring its services to provide technical and sustainment support for its fleet of Bradley Fighting Vehicle and M993 Multiple Launch Rocket System carriers.

In fulfilling the agreement, the BAE Systems STS and SSTS teams will be in charge of the engineering and logistics

10. BAE Systems Contract with U.S. Naval Shipbuilding

International; BAE Systems Integration with U.S. Naval Shipbuilding Development Services

Photo by Kristofer Keane from Shutterstock.com

  • Contracting Activity: U.S. Navy
  • Value: $5 Billion
  • Contract type: Firm-fixed price
  • Contract Date: November 2022

BAE Systems was awarded a £4.2 billion (approximately $5 billion) contract to manufacture one of the most advanced warships that will be used for submarine warfare and high-intensity air defense next 5 City Class Type 26 warships for the Royal Navy of the United Kingdom.

Type 26 warships will be designed to transport high volumes of humanitarian aid and medical facilities. It also enables the Royal Navy to defend the nation at sea.

Frequently Asked Questions

What is BAE Systems’ expertise?

BAE Systems specializes in producing cutting-edge technology and solutions in defense, aerospace and security.

BAE Systems: Providing Innovative Solutions For Global Defense and Security

BAE Systems is one of the top government contractors in the world. It has a proven track record of delivering high-quality products and services for government customers. Its commitment to innovation, technology, and customer services makes it a trusted partner for governments.

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DOE-led AI Workshop Discussed Ways to Expedite Tech for Earth, Climate Predictability
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DOE-led AI Workshop Discussed Ways to Expedite Tech for Earth, Climate Predictability

A report on the 2021 Artificial Intelligence for Earth System Predictability workshop revealed that workforce development as well as cultural and programmatic changes are necessary in order to align AI missions across government and scientific institutions.

Argonne National Laboratory on Tuesday published information on the five-week virtual workshop, which was spearheaded by the Department of Energy’s Office of Biological and Environmental Research – Advanced Scientific Computing Research program.

The objective of the AI4ESP workshop was to use AI and modern data analytics to more aggressively speed up the advancement of prediction technologies in climate, Earth, and environmental sciences. BER dubbed the workshop’s process as a Model-Experiment paradigm.

The event focused on 17 topics and nine points of interest, including climate variability and extremes; land, oceans and ice; hydrology, watershed science and coastal dynamics; and climate variability and extremes. Experts discussed the potential of neural networks, knowledge-informed machine learning, and other AI technologies to aid research in the environmental fields.

“We need new AI methodologies that incorporate process understanding and respect physical laws to make predictions of Earth system behavior scalable, trustworthy and applicable under future climate regimes,” said Charu Varadharajan, leader of the Lawrence Berkeley National Laboratory’s Earth AI & Data Program Domain. ​“This workshop is unique in discussing how AI could improve models, observations and theory incorporating DOE’s ModEx approach.”

The application of artificial intelligence in Earth science as well as other fields will be further discussed at the Potomac Officers Club’s 4th Annual Artificial Intelligence Summit, which will be held on Feb. 16. Click on the image below to register.

POC - 4th Annual Artificial Intelligence Summit
Biden Administration Begins Initiative to Expand Access to Capital for Small Businesses
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Biden Administration Begins Initiative to Expand Access to Capital for Small Businesses

The Biden administration is looking to strengthen the small businesses sector by expanding access to capital, investments, technical assistance and services required to support the companies’ growth initiatives.

As part of the initiative, the administration has proposed rules to diversify the network of private funds and managers that provide long-term debt or equity investments to small businesses and extend additional licenses to nonbank lenders and community development financial institutions, the White House said Tuesday. 

The Small Business Administration is also proposing to update regulations governing certain loan programs to ease processing burdens for small business borrowers.

In December 2022, SBA partnered with the Department of Defense to launch the Small Business Investment Company Critical Technologies Initiative to drive investments in critical technologies that are key to national security.

The Department of the Treasury has also implemented the State Small Business Credit Initiative to provide a total of $10 billion to state, local and tribal governments to expand access to capital for small businesses.

Data from the Census Bureau revealed that more than 10 million small businesses were established from 2021 to 2022, the highest recorded number for a two-year span.

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GAO: DOE Should Hold Periodic Meetings to Share Information on Contracting Process
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GAO: DOE Should Hold Periodic Meetings to Share Information on Contracting Process

The Government Accountability Office has recommended that the Department of Energy conduct periodic meetings to facilitate sharing of information with industry stakeholders on how competitions are carried out for contracts to operate national laboratories and perform environmental cleanup work. GAO also encouraged DOE to share how proposals are assessed.

GAO interviewed DOE officials and industry representatives and examined contract files for 15 competitions and found that fewer companies and universities submitted bids for management and operating contracts than for other contract types between fiscal years 2015 and 2020, according to a report published Tuesday.

Industry representatives that the congressional watchdog interviewed raised concerns over the fairness of the contract award process.

GAO additionally found that DOE’s National Nuclear Security Administration and the Office of Science have not conducted quarterly meetings with industry entities that could help shed light on how they conduct competitions.

“Improved information sharing could help these components address industry perceptions about fairness, which could in turn remove barriers to a more competitive acquisition environment,” the report reads.

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NASA, DARPA Partner on Nuclear Thermal Propulsion Tech Demonstration Program
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NASA, DARPA Partner on Nuclear Thermal Propulsion Tech Demonstration Program

NASA and the Defense Advanced Research Projects Agency have teamed up on a program that seeks to build and demonstrate a nuclear thermal rocket engine that could support future manned missions to Mars.

Under the Demonstration Rocket for Agile Cislunar Operations program, DARPA will serve as the contracting authority for the development of the entire stage and nuclear thermal engine and manage rocket systems integration and procurement, security, scheduling, approvals, cover safety and liability, the space agency said Tuesday.

NASA Administrator Bill Nelson shared that the two agencies will work together to demonstrate the nuclear thermal propulsion system through the DRACO program as early as 2027.

NASA’s space technology mission directorate will oversee technical development work on the engine for integration with DARPA’s experimental spacecraft.

“The ability to accomplish leap-ahead advances in space technology through the DRACO nuclear thermal rocket program will be essential for more efficiently and quickly transporting material to the Moon and eventually, people to Mars,” commented DARPA Director Stefanie Tompkins.

AFMC Trains Focus on Digital Materiel Management to Advance Warfighting Capabilities
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AFMC Trains Focus on Digital Materiel Management to Advance Warfighting Capabilities

Air Force Materiel Command is shifting its operational focus to prioritize digital materiel management and streamline acquisition processes to deliver advanced, integrated capabilities to warfighters.

Digital materiel management is one of the core priorities outlined in the 2023 AFMC Strategic Plan to revolutionize the command’s critical processes to achieve mission objectives, AFMC said Tuesday.

“To support the focus, our team will be working to establish a series of enduring initiatives to drive digital methods across the entire lifecycle of our warfighting systems and installation and mission support capabilities,” said Kyle Hurst, chief of the Department of the Air Force Digital Transformation Office.

The new digital plan involves the development of model-based systems engineering frameworks, the migration to cloud-hosted tool environments and the deployment of open software architectures.

Hurst said using modern tools and automated processes will enable AFMC to develop and deploy improved weapons systems necessary to keep up with China’s technological advancement.

“The People’s Republic of China is outpacing our ability to develop and deploy systems at an alarming rate. Digital Materiel Management activities are an essential component in accelerating our acquisition efforts to meet our near-peer challenges,” Hurst added.

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Senators Urge GAO to Look at National Security Risks Posed by Contracting Conflicts of Interest
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Senators Urge GAO to Look at National Security Risks Posed by Contracting Conflicts of Interest

Sens. Gary Peters, D-Mich., and Josh Hawley, R-Mo., have asked the Government Accountability Office to assess the national security risks associated with consulting firms doing business with both the U.S. government and the Chinese government and its affiliates.

“Although firms doing business for the Chinese government or its associates may argue that structural divisions between corporate entities servicing the Chinese and American governments, respectively, are sufficient to eliminate security risks or conflicts of interest posed by their work – we remain concerned that information sharing within these companies may result in Chinese entities accessing or taking advantage of firms’ access to U.S. government data, classified or otherwise,” the lawmakers wrote in a Tuesday letter to Gene Dodaro, GAO’s comptroller general.

According to the Senate Homeland Security and Governmental Affairs, the lawmakers’ request to GAO builds on a bipartisan law that seeks to prevent conflicts of interest in the federal contracting sector.

The senators are asking GAO to evaluate the extent to which federal agencies gather information on contracts carried out on behalf of the Chinese government by consulting companies that have contracts with the U.S. government. The pair suggests identifying contract clauses, information and procedures that agencies use to evaluate and address organizational conflicts of interest when awarding consulting contracts.

The congressional watchdog was also requested to pinpoint measures agencies take to track the compliance of contractors with contract terms, clauses and conditions meant to address identified conflicts of interest.

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Public Sector is Embracing Cloud, DevSecOps & AI Adoption Despite Existing Barriers, SAIC Survey Reports
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Public Sector is Embracing Cloud, DevSecOps & AI Adoption Despite Existing Barriers, SAIC Survey Reports

Science Applications International Corp. has published the results of its Federal Response to Cloud, DevSecOps and AI survey, providing insight into federal progress in implementing cloud and artificial intelligence as well as fully applying the DevSecOps method, all of which have grown in prominence within recent years.

Responses collected from over 375 information technology and business leaders across defense and civilian agencies revealed that while federal organizations are welcoming these novel tools, many are experiencing challenges in budgeting and implementation, SAIC announced from Reston, Virginia on Wednesday.

“The survey results uncover not just technology opportunities and challenges government leaders face in leveraging cloud for strategic advantage, but also the realities of the state of DevSecOps and AI maturity within government,” commented SAIC CTO Bob Ritchie.

According to the survey results, 70 percent of government agencies currently use two or more cloud service providers.

Despite commitments to cloud migration, agencies still face hurdles in financing cloud technology. 48 percent of survey respondents noted insufficient budgeting as an issue and 47 percent cited lack of forecasting as a problem when utilizing the cloud.

DevSecOps, which Rana Barzegar, SAIC’s senior director of Software Innovation Factory, said “provides agencies with increased agility, security, speed and quality for IT modernization initiatives,” is becoming more widely adopted. According to the data, a decisive 90 percent of respondents noted that agencies are making efforts to implement the approach.

At the same time, more than half of these organizations have encountered problems during the integration process, which 54 percent of those surveyed highlighted as the largest barrier to deploying a DevSecOps service.

AI, which has become a flourishing area of discussion within federal agencies, is still being viewed as a distant goal in these communities. The survey found that less than 20 percent of participants reported a high likelihood of adopting the technology within the next year, while 57 percent noted policy and governance as major barriers to AI implementation.

Survey responses were collected from Oct. 15 to Nov. 3, 2022 in partnership with Market Connections.

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