Rapid Fire March 5, 2012: Chinese Military Spending

  • China is officially announcing that its 2012 budget is increasing by 11.2% to about $106B. It is broadly agreed that this significantly understates total military spending. After about 25 years of double-digit growth China is now clearly the second biggest defense spender behind the US, with a budget that more than doubled in the last 5 years alone. There is more to it than just new kit though: some of that money is spent on improving quality of life for sailors to ease recruitment and retention, as China is facing serious demographic constraints and deep socioeconomic shifts. Associated Press | Bloomberg.

  • The US DoD Inspector General is reviewing the F-35′s quality assurance system, while the Air Force is looking at where to locate its training site. Meanwhile the UK is reportedly researching whether they should stick to F-35Cs or switch to F-35Bs.

  • Deputy Secretary of State William Burns told Brazilians last week, about the LAS travails:
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LOGCAP 4: Billions of Dollars Awarded for Army Logistics Support

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Latest updates: $313 million to KBR for LOGCAP work in Iraq; 2009 contracts backfilled.
Fluor in Afghanistan
Fluor builds LOGCAP housing
in southern Afghanistan

The US Army’s sole provider LOGCAP 3 contract, which provided food, housing and fuel for U.S. troops worldwide, generated lots of controversy because government audits of the sole supplier’s (Halliburton-KBR) work were unable to fully account for millions of dollars or justify all charges to the Pentagon’s satisfaction.

To address perceived problems of LOGCAP 3, the Army awarded the follow-on contract, LOGCAP 4, to 3 companies – KBR, DynCorp and Fluor – who compete for task orders.

The LOGCAP 4 contracts are indefinite-quantity/ indefinite-delivery contracts with 1 base year and 9 option years. Each contract has a maximum value of $5 billion per year. This allows the Army to award a total annual maximum value of $15 billion and a lifetime maximum value of $150 billion.

US MRE/Humanitarian Ration Orders, FY 2007-2011

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Tastes like (Parmesan) Chicken…

2010 contracts. (Nov 1/10)

The Defense Supply Center Philadelphia (DSCP) in Philadelphia, PA issues contracts for American field rations, known as Meals Ready to Eat (MREs), and for Humanitarian Daily Rations (HDRs) used when providing aid in emergency situations abroad. This Spotlight article covers related contracts during the slice of time from FY 2007 – 2011.

While there are reports that the French RCIR (Ration de Combat Individuelle R̩chauffable) has superior trade value on the front lines, MREs are generally considered to be a significant improvement over earlier US rations. DID readers with a high fright threshold might wish to view a set of comparative photos of modern army rations from various militaries. Even if you knew nothing about China, you could guess that their soldiers are draftees Рbut scroll down in the post, as well as look at the link; things may be improving. In the USA, see below for field anecdotes, including MREs as RPG defenses, and what happens when celebrity chefs try MREs.

  • Field Anecdotes: USA
  • Contracts and Key Events, 2007 – Present [updated]
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Meals on Wheels: Containerized Kitchens Feed US Troops on the Move

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Containerized Kitchen
(click to view larger)

Global Strategies Group North America in Frederick, MD received an $18.7 million firm-fixed-price modification to a previously awarded contract (W911QY-05-D-0004) for 103 containerized kitchens and spares.

The containized kitchen is a US Army deployable food preparation container that is able to prepare and serve a minimum of 800 meals up to 3 times per day. The container can be expanded to 8 feet by 8 feet by 20 feet and is mounted on a tactical trailer.

The kitchen is powered by thermal fluid/ cogeneration technology…

The Merchants Co. Gets $30.4M Order to Supply Food to US Military Facilities in MS, LA

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The US Defense Supply Center Philadelphia is exercising the 1st 18-month option on a firm-fixed-price prime vendor contract (SPM300-08-D-3242) for The Merchants Co. in Hattiesburg, MS to provide full line food distribution to US military facilities in Mississippi and Louisiana.

The option has a maximum value of $30.4 million. The original contract, along with another prime vendor contract (SPM300-08-D-3244), were awarded to The Merchants Co. on Jan 17/08 to supply food to 12 US military facilities in those states. The contracts have a 2-year base period, and 3 option periods. The combined value of the contracts, if all options are exercised, is $81 million…

Shamrock Provides Full-line Food Distribution to USAF Academy

USAF_Academy.jpg
Lot of mouths to feed

Shamrock Foods in Commerce City, CO received a maximum $9.5 million firm fixed price, indefinite-quantity contract modification for full-line food distribution services to US military facilities in Colorado and Wyoming.

The original contract (SPM300-08-D-3219), awarded Jan 19/07, has a base year and 4 one-year options, with a potential value of $31 million. This modification is the 3rd-year option period.

The facilities being served by Shamrock under this contract include the US Air Force Academy in Colorado Springs, CO. The institution houses more than 4,000 cadets, as well as faculty and staff. Other facilities being served by Shamrock include:

Sysco Seattle Gets $19.2M in DoD Food Service Contracts

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The Defense Supply Center Philadelphia awarded Sysco Seattle in Kent, WA contracts worth up to $19.2 million to provide food service distribution and food and beverage support to US military facilities.

In August 2009, Sysco received a maximum $7.3 million firm-fixed price, indefinite quantity full-line food distribution contract modification to provide food services to US Army, US Air Force, and US Job Corps facilities in Alaska. That original contract [pdf] (SPM300-08-D-3160), awarded Aug 17/05, had a potential value of $29 million.

The recent contracts involve new awards for food service:

US Foodservice to Provide Food Distribution for US Facilities in CA, NV

US Foodservice

The Defense Supply Center in Philadelphia, PA is exercising the 1st option period on a firm-fixed-price, indefinite-quantity/ indefinite-delivery contract (SPM300-08-D-3228) [pdf] worth up to $43.6 million for US Foodservice in Livermore, CA to provide full-line food distribution services.

Under the contract, US Foodservice provides full-line food distribution services to US military and US Job Corps facilities in northern California and Nevada.

The US facilities being served by US Foodservice include:

Darigold to Supply Dairy Products to Military Commissaries in Western US

Defense Commissary Agency

Darigold in Seattle, WA won a $13.2 million indefinite-delivery, requirements-type contract to provide fresh dairy products for resale at 12 Defense Commissary Agency’s commissaries in Alaska, Washington, Idaho, and Montana.

The Defense Commissary Agency in Fort Lee, VA operates commissaries providing groceries to US military personnel, retirees and their families. Authorized patrons purchase items at cost plus a 5% surcharge, which covers the costs of building new commissaries and modernizing existing ones…

US Foodservice to Provide Food Distribution to US Military Facilities in Missouri, Kansas

US Foodservice

US Foodservice’s Salem Division in Salem, MO received a maximum $27.4 million firm-fixed-price, indefinite-quantity, prime vendor contract to provide full-line food service distribution for US military services and federal civilian agency facilities in Missouri and Kansas.

The division will provide food service distribution to the following US facilities:

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