U.S. Trade & Aid Monitor

AFRICOM Transport No-Bid Contract-Extension Awarded

Transportation of U.S. troops and cargo between Germany and Africa just became more lucrative for Cartersville, Ga.-based Phoenix Air Group, which yesterday—without needing to compete for the endeavor—received a six-month contract extension to provide such services.

The U.S. Transportation Command (TRANSCOM) in 2009 initially selected Phoenix Air to provide “Fixed Wing Airlift Services” through March 31, 2012. The Firm Fixed Price Indefinite Delivery/Indefinite Quantity (ID/IQ) contract, then-valued at $26 million, has been modified to reflect the new delivery date through September 30. It did not disclose the cost of the contract modification.

TRANSCOM explained in “A Justification For Other Than Full And Open Competition,” or JOFOC, document that this action was necessary in order to provide continued, critical assistance to the U.S. African Command. AFRICOM, as it is known, “conducts sustained security engagement through military-to-military programs, military-sponsored activities, and other military operations as directed to promote a stable and secure African environment in support of U.S. foreign policy.”

Other vendors—specifically, Aerodynamics, Inc., and Berry Aviation Ltd.—“expressed interest” in competing for this acquisition, responding to market research begun late last year; however, those companies must wait for future opportunities while their eligibility is determined. TRANSCOM claimed that if it launched a new solicitation:

Unacceptable delays will occur and a wide range of programs and activities that help African states meet their goals of building capable and professional militaries that are subordinate to civilian authority, respect human rights, and adhere to the rule of law will be put in jeopardy, if modification to extend the current contract is not executed.

Aircraft used on behalf of the Stuttgart-based AFRICOM carry upwards of eight passengers and 4,800 pounds of cargo for unspecified missions across the Command’s area of responsibility, according to the document.

RELATED: U.S. Military Supplies for Africa Ops Surge

FOR MORE REGIONAL COVERAGE, SEE THE MONITOR'S AFRICA PAGE.

U.S. Getting Closer to Funding China Enviro Clean-Ups, Brazil Airport and Ukraine '9-1-1' Upgrades

The U.S. government yesterday took the next step towards partly financing environmental cleanup projects in China. As U.S. Trade & Aid Monitor previously reported, the U.S. Trade & Development Agency (USTDA) last month issued a Scope of Work related to a series of groundwater remediation initiatives in China—projects for which that nation intend to infuse (USD) $5.5 billion of its own money through 2020 (Monitor, March 16).

Nonetheless, USTDA awarded a $44,000 contract to Ascendant Program Services, LLC, a Bethesda, Md.-based infrastructure consulting firm, to embark upon a "definitional mission," or DM, to China. (Contract award #USTDA-CO201261140).

Despite the seemingly inconsequential price tag of the DM, it is one of several potential exploratory missions for which USTDA might fund—standard steps that the agency typically takes, such as the crafting of next-step “feasibility studies”—before arranging much larger financing of the actual remediation projects.

Ascendant now will travel to Beijing and two other cities that the Chinese Ministry of Environmental Protection has identified as "priority locations for groundwater and soil remediation projects."

The contract is one of a trio that the company secured from USTDA since last year. The agency awarded Ascendant a $35,000 contract, for example, to perform a feasibility study of an emergency call center project for the Government of Ukraine. 

Likewise, in 2011 it separately awarded it a $50,000 contract to carry out a definitional mission to Brazil, where it was to evaluate possible USTDA funding of airport modernization projects.

As a follow-up measure to that Ascendant mission, the agency last week agreed to give a $485,000 “technical assistance” grant to the Rio de Janeiro State Transport Secretariat toward such airport projects. The Secretariat will not use the money for actual modernization of transportation infrastructure; rather, the funds will help the Rio state authority to “update its statewide airport plan and develop a funding strategy to modernize and expand the state's airport and heliport networks,” USTDA announced.

There is an “urgent need” to fund the project, USTDA justified, as Brazil is experiencing “rapidly increasing air traffic” while also preparing for an influx of visitors due to the upcoming World Cup and Olympic Games.

FOR ADDITIONAL REPORTING ON THE U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT, SEE THE MONITOR'S USAID PAGE.

FOR FURTHER TOPICAL COVERAGE, SEE THE MONITOR'S ENVIRONMENTAL PAGE.

FOR ADDITIONAL REGIONAL COVERAGE, SEE THE MONITOR'S CHINA PAGE,  BRAZIL PAGE, AND UKRAINE PAGE.

U.S. Taxpayers Footing Bill to Bring Foreign Railroad Manager-Trainees to America

The U.S. government is offering financial assistance toward manager-training programs that will benefit the nation's rail transit systems -- in the nation of South Africa, that is.

This grant from the U.S. Trade & Development Agency (USTDA) comes at a time when the Government of South Africa is already planning an infusion of "massive capital investments"  into a large "rail, port, and pipeline company" of  which it is majority owner.  Despite having the ability to facilitate this cash infusion, the Transnet Freight Rail (TFR) and an affiliated unit, Transnet Rail Engineering ("TRE"), have asked USTDA for funds to help it prepare the next generation of rail managers.

Under the "Training for the Transnet Management and Operations Development Program," (Solicitation #2007-11011A), USTDA will give $500,000 to the company to send employees to the U.S. for such training.

'Intelligent Transportation' Project Seeks to Ease Rush-Hour Crush

Traffic congestion, protracted rush hour commutes, and impediments to the timely provision of emergency services has motivated the U.S. government to embark upon an “intelligent transportation” initiative to ease the crunch in many cities—cities, that is, in Brazil.

The U.S. Trade & Development Agency (USTDA) therefore is financing an initial review of what needs to be done to alleviate the problem for the 11 million residents of Sao Paulo and other Brazilian urban areas.

The agency today awarded a $50,000 contract (award # TDA-CO201151103) to H.E. Pena, Jr., Transportation Consulting of Charleston, South Carolina to conduct a feasibility study before proceeding further with the project.

“In an effort to improve traffic flow, reduce transportation costs and improve emergency response and in highly populated metropolitan areas, several of Brazil’s largest metropolises will be taking measures to mitigate traffic congestion,” USTDA says in the document. “These measures will include significant investments in the adoption of intelligent transport system technologies.”

Other articles from the Monitor about Brazil:

U.S. to Fund First Phase of Digital 'Smart Grid' Power Project

U.S. Helps Fund Mexican Road Projects As Industry Flees To Asia

The U.S. Trade & Development Agency (USTDA) soon will embark upon a second and significantly larger phase of a project that seeks to improve Mexico's national transportation and shipping infrastructure. The reason? According to recent USTDA planning documents obtained by The Peacock Report, it's simple: "Mexico has recently suffered from lost manufacturing jobs to Asia and is searching for methods to regain its competitiveness."

As partners with Mexico and Canada in the North American Free Trade Agreement, better known as NAFTA, the U.S. can -- indeed, must -- help solve the tragic loss of jobs in Mexico to Asia. This new “multimodal” transportation and shipping project comes less than a year after the USTDA partially financed the construction of the Tijuana Intermodal Terminal initiative in Northwest Mexico.

A goal of the new export hub was to remedy “lack of adequate and efficient transportation infrastructure“ in and around Tijuana, Mexico, another USTDA contracting document said.

In other words, as of last year there hadn't been enough of U.S. manufacturing jobs that disappeared overseas and south of the border.

The “free-market“ gurus in Washington, D.C. therefore wanted to make it easier for Mexico-based industry to conduct business. The sweatshops in the Tijuana region -- which, according to the TDA, ship out 3,000 truckloads of raw materials and finished goods on a daily basis -- were hampered by Mexico's inadequate roads, bridges and border crossings. Our neighbor to the south needed a centralized site for its maquiladoras to efficiently export goods.

Hence, the U.S. taxpayer came to the rescue! How else can U.S. citizens ensure that Mexican industry gets its products, as the document points out, to the “Union Pacific [railway] distribution lines in the Southwest U.S.? Come on, don't be upset. Don't blame your elected officials for allegedly squandering your hard-earned money. I mean, how else do we enhance “regional competitiveness through reduced costs related to cargo management and shipment?

That explains it. (1) U.S. manufacturers first fled to Mexico. (2) Some of those same businesses eventually slipped away to Asia. The federal bureaucracy therefore had to help Mexico build up its national infrastructure so it doesn't continue to get walloped by Asia.

One final note: ironically, Rep. Don Sherwood (R-PA-10th Dist.), who represents my economically challenged home-region of Northeastern Pennsylvania, is co-chairman of the House Appropriations Foreign Operations Subcommittee -- the congressional panel with direct oversight of the corporate welfare barons at USTDA.