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Memorial Day Blue Angels Air Show at Jones Beach NY

The appearance of U.S. Department of Defense (DoD) visual information does not imply or constitute DoD endorsement

This Memorial Day weekend, the Navy’s Blue Angels will perform at the Jones Beach NY Air show; however they will not be back next year. The flight demonstration and support team Navy and Marine Corps have been performing for over 70 years with an estimated 11 of million spectators each year.

History of the Blue Angels

In 1946 the Chief of Naval Operations (CNO) Admiral Chester Nimitz of the U.S. Navy came up with an idea to create a flight exhibition team to help boost Navy morale and raise the public’s interest in naval aviation. So how did the Blue Angels get their name you might ask? One of the original team saw the name Blue Angel nightclub in the New Yorker Magazine.  Over the past 72 years the team has changed their home base several times.  Starting at Naval Air Station (NAS) Jacksonville, they are currently stationed at Naval Air Station (NAS) Pensacola Florida.

The Blue Angels have flown several types of aircraft over the years, the current model being the F/A-18 Hornet. The Support aircraft flown by Marine Corps pilots has been the C-130 since the 1970’s.  It’s used by the team to move personnel and equipment between show sites.  The Marine Corps originally nicknamed the C-130 “Fat Albert”.

Where do they perform and when can I see them?

When the Blue Angel team is not performing at shows they can be found at the National Naval Aviation Museum, NAS Pensacola which has a viewing area for visitors to watch the team practice.

Flight demonstrations, air shows and performances according to the Department of Defense (DoD) assist in recruiting, demonstrate professional capabilities and pride of the Navy and Marine Corps by community outreach.   Every year the Department of Defense, Blue Angels’ Commanding officer, CNO and Navy recruiting command review hundreds of requests per year to hold air shows featuring the Navy Blue Angels.  After several meetings and approval processes the locations and dates of air shows are released.  https://www.blueangels.navy.mil/show/

The Blue Angels Memorial Day weekend Air show is scheduled to be perform next year at Scranton, PA May 25 & 26 2019.

Blue Angels contracting office information:

N30929 -Navy Flight Demonstration Squadron – Blue Angels care of supply officer, Pensacola FL 32508

https://www.blueangels.navy.mil/

BidLink has been a leading provider of industry marketing data relating to DoD procurement for the past 18 years.

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Zerk fitting price increases 1,277% at DOD – They’re seeking new manufacturers

This week a new government solicitation was issued which will result in a Long Term Contract (LTC) for several styles of commonly used grease fittings. These grease fittings otherwise known as lubrication fittings or Zerk fittings are used virtually in anything that moves. The US Military uses them in everything, it’s a common repair part replaced when it fails.  The one most commonly used is the straight one, the National Stock Number (NSN) is 4730-00-172-0010.  In fact DLA purchases over 100,000 units per year.   This NSN 4730-00-172-0010 has the official item name of “Fitting, Lubrication”.  The Department of Defense forecasts an Annual Demand Quantity (ADQ) of 190,625 of these grease fittings.  The government solicitation SPE7MX-18-R-X040 closes June 8, 2018 and the requirement includes 14 other similar styles of lubrication fittings with lower quantities.

A couple factors caught our interest in this solicitation

On December 22nd 2017 a defense contract for the exact same group of 15 NSNs was awarded to Jamaica Aerospace Company (AKA Jamaica Bearings) CAGE code 12516.  The total estimated contract value was listed at $800,000.00.  The Government received only 3 responses to the solicitation SPE7MX-17-R-0085 which resulted in this award to Jamaica Aerospace.  The contract award SPE7MX-18-D-0040 is an IDC – Indefinite Quantity Contract which they are currently delivering product under.  It consists of a three-year base period with two one year option periods.  It was issued by the DLA Land and Maritime, Strategic Material Sourcing Group division.  The new solicitation SPE7MX-18-R-X040 is out of the same office also with a three-year base period with two one year option periods for the same list of items.

The second factor which was interesting is the huge price jump of 1,277 percent of the NSN with the highest volume. After reviewing past procurement history, actual PDF contracts and DLA unit prices back to 1989 pricing for NSN 4730-00-172-0010 remained basically unchanged.  Current DLA unit cost associated to this NSN (based on past activity) is set at $0.22 per unit or $5.50 per package of 25.  Now according to the latest contract awarded to Jamaica Aerospace they now cost $3.03 per unit or $75.70 per package.  These prices are based on government purchases on over 466 packages (per order) as that’s the price break point.  Orders under 466 price out at $5.18 per unit or $129.39 per package of 25.

Overall this is a huge price increase going from $0.22 each unit to $3.03, what happened?

We reviewed procurement history (contract awards) of this NSN as well all the companies CAGE code classifications over the past 10 years. Most all of the companies listed as past suppliers for this grease fitting were distributors or dealers including Jamaica. Many of the companies received contracts for this NSN only to have them cancelled soon thereafter for unknown reasons.

NSN Analysis

First here are some NSN basics – Every NSN is associated to one or more reference numbers along with a CAGE code, these numbers are listed in the Master Cross Reference List (MCRL) section. These reference numbers have various purposes such as defining the number as either a manufacturers part number, specification or drawing number.

This NSN 4730-00-172-0010 lists 50 distinct reference numbers along with 50 different companies and 54 distinct CAGE codes this is more than most NSN’s. The majority of the CAGE codes associated are manufacturers, most of them prime manufacturers like General Motors or Oshkosh Defense.  These companies are ones that would typically use grease fitting in their products and not make them, that’s why you see so many numbers.  The others were listed as non-manufacturers many of them obsolete CAGE codes.  Typically one or more manufacturers are listed in the MCRL section and of this entire list we only found two CAGE codes that possibly specialize in manufacturing grease fittings or Zerk fittings.  They are CAGE 36251 McNeil Ohio Corporation and 0FKM1 Alemite, neither of them are active in the SAM database www.sam.gov or have sold direct to the government in many years.

History on lubrication fittings or Zerk fittings

Alemite LLC a manufacturer of grease guns (lubricating guns) was purchased by the Allyne-Zerk Company back in the year 1924. Oscar U Zerk an inventor designed a new style of lubricating nipples which improved on the previous designs.  October 18, 1932 Oscar U Zerk and assignee Alemite Corporation received patent number 1,883,275 for this new design.  The lubrication nipple or fitting in this patent drawing looks relatively unchanged from the grease fittings we use today some 86 years later. See the Military Specification MS15002-1 and MS15002-2 as a comparison.

McNeil Ohio Corporation purchased Lincoln Industrial in 1955 they also specialized in lubrication and fluid pumping products. Today they operate under the name Lincoln Industrial. Both Lincoln and Alemite operate under the SKF Group which is headquartered in Gothenburg Sweden.  SKF USA Inc. CAGE code 52676 is the only active CAGE code currently selling to the US Government.

Specifications and Drawings

This open solicitation states that the drawings/specifications are available for any bidders. Most are SAE specifications or standards based on obsolete military specs.  We have gathered a few of the mil-specs for you to review here. MIL-F-3541 is the general specification for lubrication fittings; MIL-F-3541 and the actual drawing MS15002 for the most commonly purchased Lubrication fitting. However you will need to obtain the current SAE standards to quote.

Manufacturing of grease fittings

Part of our research included reaching out to a machine shop to gain some professional thoughts.

“A machine shop with a screw machine should be able to produce the grease fitting you described” was the comment from a prototype machine shop we spoke to – Thanks 4M Instrument & Tool LLC.

In conclusion these were our findings based on the available data

  • The US Government for this most commonly used grease fitting has limited manufacturer.
  • A 1,277 percent price hike – from $0.22 cents to $3.03 dollars each means something.
  • Competition for manufacturers of grease fittings is low.
  • Competition for government sales of grease fittings is low, only 3 submitted bids last time.
  • The current government solicitation closes on June 8th 2018, and is for same list of items.

If you are a manufacturer looking for defense contracts this is one item worth looking into.

BidLink has been a leading provider of industry marketing data relating to DoD procurement for the past 18 years.

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KC-46, Tinker Air Force Base and new DLA contracts issued to Boeing

Boeing’s KC-46 aerial refueling tanker conducts receiver compatibility tests with a U.S. Air Force C-17 Globemaster III (U.S. Air Force photo by Christopher Okula)

Background on the KC-46 program

The KC-46 program began as KC-X Tanker modernization program and is intended to replace the US Air Force’s legacy aircraft fleet of KC-135 Stratotankers which have been the primary refueling aircraft for more than 50 years. The requirement was for four (4) developmental aircraft with options for up to 175 production aerial refueling tanker aircraft based on existing commercial aircraft designs.   The US Air Force – Aeronautical Systems Center’s (ASC) KC-X Program Office located in Wright-Patterson AFB OH posted solicitation FA8625-10-R-6600 in February of 2010.  In February of 2011 the Air Force awarded contract FA8625-11-C-6600 to the Boeing Company for $4.4 Billion dollars for Engineering and Manufacturing Development (EMD) only excluding options.

The KC-46 is a tanker aircraft designed for aerial refueling used to support to the Air Force, Navy, and Marine Corps. It can also be used for cargo and aeromedical evacuations.  The cargo deck is located above the refueling system and can accommodate passengers, patients, and cargo.  The KC-46A will be able to carry up to eighteen (18) 463L cargo pallets which is the standard pallet system used for years. The sustainment strategy for the aircraft includes a 40-year service life.

Other major Government contracts awarded in support of the program

The KC-46 aircraft engines and aircraft frames are to be maintained at Tinker Air Force base, whereas Warner Robins and Ogden will be responsible for things like avionics and landing gear. Tinker decided to design and build a new depot maintenance complex in support of the new KC-46A’s.

The US Army Corps of Engineers (USACE) working with the Air Force on the project released an award in November of 2013, contract number W912BV-12-D-0006 for an amount of $3,426,910.00 for design of the facility. The architecture firm who was awarded the defense contract was Burns & Mcdonnell, Inc. and the award was made against an IDV the company was awarded back in 2012 out of the USACE Tulsa Oklahoma office.

In August of 2015 solicitation W912BV-15-R-0088 was posted by the USACE click this fedbizopps link for the solicitation. In May of 2016 the contract W912BV-16-C-0029 was awarded to Contrack Watts, Inc a for construction of the KC-46A depot maintenance complex support infrastructure to be located at Tinker Air Force Base, OK. The complex is forecasted start operating sometime in 2019.

Last week DLA Aviation announced a Performance Based Logistics (PBL) program with Boeing for support of the new tanker, more about this in an upcoming article.

BidLink is a leading provider of industry marketing data relating to DoD procurement for the past 18 years.

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Additional development costs of the KC-46A Tanker for US Air Force may cost Boeing $1 Billion Dollars

Boeing’s KC-46 aerial refueling tanker conducts receiver compatibility tests with a U.S. Air Force C-17 Globemaster III  (courtesy – U.S. Air Force photo by Christopher Okula)

The US Government Accountability Office (GAO) just released their 7th report on the contract with Boeing for KC-46 Tanker Modernization.  This program will eventually replace approximately one-third of the US Air Force’s legacy aircraft fleet of refueling tankers.  The current fleet is comprised mostly of KC-135 Stratotankers, this new program plans to eventually provide a total of 179 new KC-46 tanker aircraft otherwise known as the KC-46A Pegasus to the Air Force.

This GAO study pointed out a few risks and challenges Boeing currently faces. Things such as a critical deficiency relating to the aerial refueling boom, completing flight tests at a quicker pace, and updating test aircraft to the correct configuration as well as a few other challenges. “Because of the terms of the contract, Boeing, not the government, is responsible for nearly $1 Billion in additional development costs already incurred.”

GAO found that the total acquisition cost estimate was stable over the past year at $44.4 billion and actually decreased about $7.3 billion, due in part to stable requirements. The delivery date of the first 18 fully capable KC-46 aircraft was changed to October 2018.  However risk assessments well as GAO’s analysis projects believe deliveries could slip to May 2019.

Tinker Air Force base where the KC-46A program office was established has already designed and is currently building a new depot maintenance complex in support of the new KC-46A’s. The US Army Corps of Engineers is the contracting agency for the building. DLA Aviation has also been issuing defense contracts in support of this program.

Read more about DLA KC-46 DOD contracts being awarded to Boeing.

BidLink is a leading providing of industry marketing data relating to DoD procurement for the past 18 years.

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DoD contracts for wire rope assemblies

Wire rope assemblies are used by DoD in various ways such as helicopter hoists or vehicle mounted winches. The simple assemblies usually consist of a length of wire rope with a hook or loop at either end.

A quick look at the past DoD contracts and current government solicitations shows several million dollars of activity with many repeat purchases. Companies, specifically manufacturers of wire rope assemblies have many opportunities in this sector. Some are standard simple type items and some are classified as critical safety items. Either way in many cases there is little or no competition for some of these items.

Wire rope manufacturers or wire rope assembly companies should take a look at the current business opportunities and possibly win some government contracts.

BidLink is a leading providing of industry marketing data relating to DoD procurement for the past 18 years.

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Department of Defense seeking new manufacturers of communication headsets

In the past 7 days we’ve seen a surge of government solicitations issued for aviation headsets or communication headsets all coming from the DLA Land and Maritime, Active devices division. In fact over 3,200 headsets have been requested, with an average cost of over $400.00 each could mean close to 1.3 Million dollars of sales to the contract awardees who win them.

Many situations can cause an increase in number of solicitations you see such as the demand of a product has increased, a vendor has contract delivery issues, or a sole source item is no longer available. Products designated as “sole source” (one supplier) can be problematic especially when there is only one manufacturer. Savvy government contractors typically seek out sole source opportunities as they provide competition to government buyers and possibly better products for the end user. Many small businesses and start-up companies increase their sales by searching for sole source government contracting opportunities.

Between May 3rd and May 10th 2018 DLA posted nine (9) solicitations requesting over 3,200 headsets from 4 different manufacturers. These products are listed as “Commercial off-the-shelf items” and that any alternate offerors provide data packages for evaluation. So as it looks the government is actively searching for new manufacturers of headsets. The majority of the requested headsets are currently manufactured by the David Clark Company.

The top 3 headset manufacturers selling to the US Military are Roanwell headsets (CAGE code 82872), Plantronics headsets, (CAGE 22447), and David Clark headsets (CAGE 71483).

Procurement history data shows that theses headsets used by the Defense Department (DoD) are purchased on a regular basis and that many of them are sole source. These Government solicitations posted the requests under the title “Headset – Microphone” or “Headset, Electrical” as that’s the name of the NSNs associated to the items. Most of the NSNs for headsets are listed as throw away items, when they fail they’re not repaired and new ones are purchased. Noise canceling headsets, pilot headsets or general communication headsets are used everywhere from helicopters to aircraft by everyone.

These solicitations are currently open for bid and can be found at www.bidlink.net or directly on the government website which they were posted on.

Reverse engineering and source approval are ways to increase your government sales. Successful government contractors look at the word sole source as an opportunity.

BidLink is an industry leader in providing government solicitations and procurement data which has been used by DoD and Commercial industries for the past 18 years.

Comments? Contact Jim at jimnews@bidlink.net

www.bidlink.net – 866-226-4488

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What is a NAICS code?

NAICS Codes
NAICS Codes

The NAICS (North American Industry Classification System) is the standard used by the Federal Government in classifying business establishments; it replaced the Standard Industrial Classification (SIC) system back in 1997. Various agencies use the NAICS as a basis for their procurement programs however the NAICS is an “Industry” classification system and not a product classification system. It is neither intended nor well suited for this purpose. When classifying products the FSC or Federal Supply Class is used.

The current NAICS version is 2017. The NAICS is comprised of a 6-digit code with the first two digits designating the economic sector with an additional 4 digits to represent and complete the code. For example: A NAICS beginning with 33 represents the manufacturing sector.  The industry classification code for Machine Shops is 332710.

You will see the NAICS being used in Government contracts and in Government solicitations. Typically when a Government contract award is entered into a federal procurement system the NAICS code may be one of the 100’s of codes associated to that contract award. When searching for Government solicitations you may also see the NAICS code used as it relates to a small business set aside status. Basically it provides the rules on the size of company that can win the award based on the companies listed NAICS classification in either company size “number of employees” or “dollars of sales”. The SBA’s (Small Business Administration) business size program publishes these in the table of small business size standards.   For example: The NAICS code for Machine Shops is 332710 and the size standards table lists the number of employees at 500.

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BidLink is an industry leader in providing government procurement data which has been used by DoD and Commercial industries.

Comments? Contact Jim at jimnews@bidlink.net

www.bidlink.net – 866-226-4488

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U.S. Air Force intends on awarding a contract for TH-1H helicopter fleet maintenance

Air Force ROTC cadets from the University of Southern Mississippi ride in a TH-1H helicopter as part of Pathways to Blue April 7, 2018, on Keesler Air Force Base (U.S. Air Force photo by Andre Askew)

The Vietnam-era UH-1H helicopters commonly known as the Huey were modified into a new configuration the TH-1H, back in December 2004 to be used as a new training helicopter for student pilots. Today the U.S. Air Force is looking for a company to provide helicopter maintenance for the TH-1H fleet over the next 5 years.

The Air Force Life Cycle Management Center (AFLCMC) – Special Operations Forces/Personnel Recovery Division at Robins Air Force Base in Georgia issued a sources sought solicitation FA8552-18-R-0004 for Depot Level Maintenance of this fleet. This division provides acquisition and sustainment for all helicopters in addition to depot maintenance, modification, repair, engineering services, and contracting support for all fielded systems.

This Depot Level Maintenance (DLM) Government contract will require extensive knowledge on the Bell helicopter platforms. It will also require purchasing of spare parts, NSNs and finding manufacturers for obsolete parts for the program.

BidLink is an industry leader in providing government procurement data which has been used by DoD and Commercial industries.

Comments? Contact Jim at jimnews@bidlink.net

www.bidlink.net – 866-226-4488