Oshkosh Shakes Up Military Contracting by Winning Humvee Replacement Contract

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New Military Trucks

As the U.S. Army looks to replace a well-traveled fleet of Humvees, the DOD has awarded a $6.75 billion contract to Oshkosh Corp. The agreement calls for the Wisconsin-based manufacturer to produce 16,901 light trucks.

Losing out on the bid were Lockheed Martin and AM General, the latter of which makes Humvees. Lockheed Martin has filed an official protest of the bid, requiring the government to review the selection process. Oshkosh will most likely prevail as the winner, but production will wait until after the protest has been resolved.

The Future of Army Light Trucks

The Joint Light Tactical Vehicles to be produced by Oshkosh will generally fit the mold of the familiar Humvee — light enough for aircraft transport, strong enough to resist explosions.

Oshkosh stock had fallen 20% since the start of the year, but has rebounded aggressively following news of the massive contract, which could ultimately grow to $30 billion. The DOD retains the right to switch suppliers for future production runs.

The new JLTVs are designed to keep costs down by using common parts including GM engines and Allison transmissions. The Army, which will acquire the vast majority of the JLTVs, had set a price-slashing goal to help offset recent overspending.

We keep an eye on major government spending to observe trends in equipment purchases. At DJ Products, our approved GSA industrial tuggers can be purchased by all military and DOD outfits to haul equipment and transport vehicles around bases and hangars.

For more information on GSA industrial tuggers including motorized carts, dollies, and vehicle pushers, visit DJProducts.com or contact us today.

Department of Defense Opens Combat Jobs to Women

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Military

In a historic decision last month, the Department of Defense announced that woman will no longer be excluded from any combat operations. The move applies to all branches of the U.S. military.

Secretary of Defense Ash Carter announced the decision, calling it an important and necessary step to staff the armed forces with the best talent available.

The Debate Surrounding Women in Combat Roles

Some observers and military leaders have held to the view that women should not serve in combat, for various reasons. A Marine corps report from September 2015 had bolstered this stance with the findings that, in simulated tests, females performing combat tasks were injured more frequently and fared less well at shooting accuracy. The study observed male-only and mixed-gender teams.

However, supporters of women in combat have pointed out that the male-only teams may have fared better partially because those participants were more experienced. With less training and experience, the teams that included females may have naturally produced less positive results.

Finding Ways to Strengthen the Military

Ultimately, the announcement simply means that women pass all requirements for combat roles are allowed assignment to those positions. The move should hopefully strengthen the armed forces with talent better allocated to every role.

The armed forces continue to seek ways to operate more efficiently and optimally. Tools and technology including DOD contractor material handling equipment can help in this regard. Battery-powered equipment to move vehicles and heavy items can be easily used by any service member, allowing units to accomplish tasks with fewer resources.

Contact DJ Products for more information about approved DOD contractor material handling equipment.

Defense Contractors Get Extension on Cyber Security Standards

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Cyber Security

An eleventh-hour reprieve has given Department of Defense contractors a reprieve until the end of 2017 before complying with new cyber security standards. For many firms, this defense contracting news comes as a welcome assurance that ample time will be allowed to implement new protocols.

Deadline extended: DOD contractors still face stricter security rules

The DOD heard concerns in December that the January 1, 2015 deadline would be causing undue difficulties for contractors and subcontractors. The reprieve finds a middle ground for increasing protection for sensitive, non-classified data.

Before the latest cybersecurity standards become mandatory, contractors will be required to report non-compliant elements that may affect a contract. The amended rules also stipulate that the toughest security standards will apply only to those subcontractors who are handling certain important data or whose contracts affect critical operations.

More information about the DOD cyber security rules is available from the National Institute of Standards and Technology.

The 2015 NDAA called for tougher security practices for the military and its contractors due to a growing frequency of threats and incidents involving sensitive military data. The goal is to reduce cyber attacks and also mandate reporting of potential breaches.

At DJ Products, we watch out for important defense contracting news that affects our clients. As a DOD contractor you know that staying on top of regulations is critical to maintaining DOD relationships.

As a manufacturer of GSA-approved equipment moving and material handling equipment for military applications, we report on major defense contracting news to help keep you informed. Follow our blog for regular updates on DOD news and solutions for defense contractors.

DoD Contractors In Hot Water for Poor Accounting and Invoicing

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Poor Invoicing Has Led to Issues in the DOD

After the Department of Defense found that some transportation contractors had falsified weight tickets, Maersk Line has settled the allegations with $3.66 million in civil penalties.

Maersk’s Farrell Lines and its logistics branch, Damco, appeared to be at fault due to a poor invoicing system. It is unclear whether there was any attempt to falsify the shipment weights, as the matter was settled before going to court.

The large fines indicate the stringent standards placed on DoD contractor equipment and practices — with strict scrutiny expected even for large and established contractors.

Why the DoD Fined Two Maersk Subsidiaries

The transportation companies had been subcontracted to move DoD cargo out of Scott AFB in Illinois. As per the terms of the contract, billing was weight-based. However, the companies did not create authentic weight tickets when shipping the loads — employees had apparently written up 563 tickets after shipment.

With the DoD contractor equipment available today, automated record keeping and material handling should prevent these sorts of invoicing issues.

Maersk had previously paid a $32 million settlement for overcharges to the DoD in 2012, but has been awarded billions in contracts since.

About GSA-Approved DoD Contractor Equipment

Firms with government contracts should take advantage of modern material handling equipment to automate many processes. At DJ Products, we offer GSA-approved truck pushers, trailer caddies, the BombCaddy remote explosive trailer, and other military contractor equipment.

These devices not only make it easier to push and pull heavy equipment and vehicles, but doing so can also make it easier to streamline operations and staffing needs.

Find out more about DoD contractor equipment at DJProducts.com.

DoD Cracks Down on Employees Leaving to be Contractors

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DOD Lost an Employee to Boeing

Possible conflicts of interest when Department of Defense (DOD) employees leave to work for defense contractors should be of interest to every tax payer in the country. CNS News reports, when Darleen Druyun, one of the Pentagon’s top-level acquisition officials, was offered a job by Boeing earning $250,000 a year, it clearly compromised the negotiations of a contract for a tanker project. In her role as Principal Deputy Undersecretary of the Air Force for Acquisition, Druyun gave Boeing preferential consideration and agreed to a higher price for the project. She then left the DOD to accept the job at Boeing.

Problems still exist

The unethical behavior earned Druyun a $250,000 fine and nine month sentence in federal prison. It also prompted officials to add the “revolving door” provision to the National Defense Authorization Act in 2008. Audits in 2010, 2014, and March of 2016 show potential conflicts of interest remain a major concern. Among other problems with reporting, the required online database known as the After Government Employment Advice Repository (AGEAR) is lacking much necessary information to be an effective tool.

DOD contractor equipment

Civilian contractors are constantly under scrutiny and must operate as efficiently as possible. The GSA has a wide range of requirements for Military and DOD contractors.

At DJProducts, we know the requirements for DOD contractor equipment and the importance of maintaining both the safety of your employees and operational efficiency. Our BombCaddy is a remote controlled, self-propelled power trailer. It is capable of safely maneuvering heavy machines and equipment in tight spaces. Contact us today for more information on our full line of DOD contractor equipment.