Lawsuit Successfully Defends Contract Against Inroads of In-Sourcing
Last month Rohmann Services sued the Air Force to prevent the in-sourcing of their contract. The Air Force has now decided not to do this. This...Long Term Aircraft Plan Includes 109 KC-X Tankers
Filed under: Congress, KC-X, KC-X Tanker News, Syndicated Industry News, U.S. Navy
The Air Force, Navy and Marine Corps released to Congress their “Aircraft Investment Plan”. This lays out how many fixed wing aircraft they intend to buy and maintain through 2020. The U.S.A.F. intends to buy 109 tankers by that year at an estimated cost of over $30 billion.
The Air Force also plans to maintain a force of 223 C-17 and 91 C-5 heavy lift aircraft. The core of the services aircraft though will be the F-35 JSF with about 600 planned for purchase at the current schedule.
Lockheed Missile Program Dodges a Congressional Bullet
Lockheed's troubled strategic cruise missile program, the JASSM-ER, performed well on recent tests. This has allowed the Air Force to begin buying...New Group Advocating For Split Tanker Buy
Filed under: Alabama, Boeing, Congress, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Syndicated Industry News, Washington
The Washington Post writes today about a new group buying advertisements to support the concept of buying KC-X tankers from both Boeing (BA) and Northrop Grumman (NOC). The group is called “Build Them Both” and its financiers have so far remained private. The idea of a split buy was floated last year but despite the ability to produce aircraft faster the related logistical costs are so high that the Air Force and DoD won’t consider it.
The article may be found here as the second part of the post.
Hopes High That This Try Is The End Of The KC-X Contest
Filed under: Alabama, Boeing, Congress, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Syndicated Industry News, Washington
Over at BNET: Government where I also publish I have a piece on how this third try will be the winning one for the Air Force and Defense Department to get a new aircraft to replace the aging KC-135 fleet. There still remain many challenges with the contest as Northrop may not bid and Boeing has expressed concerns with the fixed price portion of the contract.
It will be an interesting next few months as this is all worked out. Next deadline is May 10th when proposals are due.
New RFP Released Today
Filed under: Boeing, Congress, Department of Defense, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Protest, Syndicated Industry News
The Air Force and Department of Defense acquisition officials briefed Congress and the press today on the new RFP for the KC-X. It had some slight changes from the draft release a few months ago. The key question is will Northrop bid this time around?
They won the last contract to have that thrown out on Boeing’s protest. Much more to come on this in the days ahead.
KC-X Fully Funded In 2011 Budget
Filed under: Boeing, Congress, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp.
President Obama sent his 2011 budget to Congress yesterday. It contains as part of its record defense spending $12 billion for the development and initial production of the new KC-X tanker. The Administration and the Air Force have a goal of awarding a contract this Summer and beginning the development of the new aircraft fairly fast.
This plan is fraught with difficulties based on the history of the program. The two main competitors, Boeing (BA) and the Northrop Grumman (NOC) team, have their own supporters in Congress and their own issues with the approach the Air Force is taking. It can be expected that the source selection will be difficult and the chances for a protest fairly high if both groups do submit bids.
Air Force Buys Five Global Hawks
Filed under: Business Line, Companies, Congress, Contract Awards, Events, Federal Budget Process, Military Aviation, Northrop Grumman Corp., Services, U.S. Air Force, development program, production program
Despite the debate in Congress over how many Global Hawks could be ordered with the 2010 money the Air Force went ahead and used their Continuing Resolution Authority (CRA) money to buy five. The House had written into their version of the Defense Appropriations bill that only three could be purchased due to concerns with delays in the program. The Senate had said five. The bill currently is in Conference as the two versions are reconciled. It is proving to be a long process as their are several key differences between the two.
OSD Committed To Current KC-X Strategy
Filed under: Boeing, Congress, EADS, KC-X, KC-X Tanker News, Syndicated Industry News, logistics
Ashton Carter the Undersecretary of Defense for Acquisition, Technology and Logistics (USD (AT&L), who is the head “weapons buyer” at the Pentagon had a press availability recently. At this he stated he is committed to the current plan for the KC-X program with a final RFP coming out by the end of the year. The draft RFP in his eyes was less subjective then past ones and the questions from industry are being used to shape the final RFP. He is confident that the Air Force will get it right on their third try. It will have to be seen if this is true.
Northrop Threatening No Participation Over Cost Data
Filed under: Alabama, Boeing, Department of Defense, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Proposal, Protest, Syndicated Industry News
Yesterday Northrop announced that it is considering not participating in thew new KC-X competition. They are concerned that the the way the price requirement is structured may not be fair to them. They are also pursuing the complaint that their cost data was provided to Boeing during the protest of the last award and want access to the same information.
If Northrop and EADS don’t submit a bid it will be hard to get actual competition on the contract. That would leave just one submission, Boeing, or perhaps two from them if they go the route of having a 777 as well as a 767 proposal. This situation would make it hard for the Air Force to proceed.
The chances of Northrop doing this is low and the Department of Defense realizes it. This is the largest procurement coming down the road and both EADS and Boeing need the work. Of course if there is really a belief that their bid cannot win no matter what then Northrop should just save the money and not prepare one. This is only the draft RFP so the next year or so should be interesting.
John McCain Inserts Himself Into KC-X Competition
Filed under: KC-X, KC-X Tanker News, Syndicated Industry News
Senator John McCain (R-AZ) whose efforts frustrated the Air Force’s attempts to award Boeing a lease deal for the new tanker back in 2001 – 2004 started the whole competition now says that he wants an independent “watchdog” as part of this source selection. He was not clear as to who he would want to do this but hopes to have an unbiased source selection.
If there is a protest over the latest attempt the GAO will be the “independent” agency tasked with sorting that out. If they fail there is always the U.S. Court of Appeals. Those should be independent enough for Senator McCain.
Alenia Aeronautica has delivered the last C-27J to the Lithuanian Air Force — Press Release
Filed under: Acquisitions, Business Line, Companies, Events, Military Aviation, production program
Alenia Aeronautica has delivered the last C-27J to the Lithuanian Air Force
Alenia Aeronautica has delivered on the 21st of October 2009 to the Air Force of the Lithuanian Republic the last out of 3 C-27Js, as per the contract signed in June 2006, fully meeting time schedule. The first aircraft had been delivered to the Lithuanian Air Force in December 2006 and the second one in December 2008.
The ceremony took place at Siauliai Military Airport (Lithuania) at the presence of the Defence Ministry – Miss Rasa Jukneviciene – Commander of the Armed Forces – Maj Gen Arvydas Pocius – and Commander of the Lithuanian Air Force – Brig Gen Arturas Leita, and of Alenia Aeronautica’s top management.
The Lithuanian Defence Ministry has expressed his full satisfaction for this successful programme for the Country’s Armed Forces.
Giovanni Bertolone, CEO of Alenia Aeronautica, commented, “After one month from the ceremony for the delivery of the first refurbished G.222 for the U.S. Air Force (USAF) and assigned to the Afghan Air Force, today’s delivery, with the last C-27J to the Lithuanian Air Force, stands once again for the strong commitment by Alenia Aeronautica in fulfilling its contractual duties and in assuring its customers’ full satisfaction”.
The C-27J, developed by Alenia Aeronautica, is an aircraft capable of accomplishing many missions among which transport of troops, goods and medical stuff, paradrop operations, search and rescue (SAR), support to civil protection and maritime patrolling activities.
The C-27J represents the most advanced programme of last-generation tactical transport airplanes and will be used by the Lithuanian Air Force for the transport of troops and materials, also outside national borders, within the operations led by NATO agreements, whose organisation Lithuania has been member since 2004.
Photo by Alvydas Tamošiunas, Lithuanian Air Force Air Base.
DoD Early Estimates Two Tankers Have High Costs
Prior to the release of the latest RFP for the KC-X tanker program some in Congress and the media mooted using a split award for the aircraft. This would allow for faster fielding of tankers to expedite replacement of the older KC-135’s. It would also possibly reduce the chance of a protest by either Northrop or Boeing as well as spreading the contract around to different states. The biggest issue with the idea is that it would add cost to the program. Through the necessity of having two separate support tails the overall program would be more expensive. There would be two training tracks, sets of support equipment and parts pools alone. The aircraft also may not be complimentary. The DoD estimated back in April that the total additional cost would be over $14 billion. Obviously neither the Air Force or the U.S. Government has this kind of money available to support the idea. It would have to be payed for at the expense of other Air Force or DoD programs. It may be that cost estimates with more refinement are created that reduce this, but right now the plan is one company and one aircraft.Air Force Uncomfortable About A Protest
DefenseNews reported last month on comments by Air Force senior leadership relative to the new tanker contest. The one thing they did not want was a protest of the next award. Obviously this would cause delays to implementing the new contract and even worse cause a fourth attempt at the award.
Unfortunately due to the stakes involved a protest by the loser or losers is almost assured. Hopefully the protest can be resolved quickly and not hold up the program even more then it has been.
Alabama Senator Trys To Intervenes In Tanker Competition
Senator Sessions of Alabama is planning on amending the 2010 Defense Appropriations Bill to make the Air Force provide cost data to Northrop from...Norway receives upgraded P-3 Orions
MARIETTA, Ga., Sept. 30 (UPI) -- The Royal Norwegian air force received new production P-3 Orion maritime patrol aircraft as part of a life cycle sustainment program, said Lockheed Martin.
Singapore seeks F-16 training
SINGAPORE, Sept. 29 (UPI) -- Singapore's air force is considering training F-16 pilots in the United States.
Proposed Navy Budget For 2011 And Out Makes Some Cuts
The U.S. Navy's future budget like the Air Force's was leaked to the press. The Navy plans cuts across the board to most acquisition programs and...Leaked Air Force Budget Documents Shows Major Cuts
Future budget documents for the Air Force have been leaked showing the service is planning major cuts to acquisition programs.Air Force contracts for brakes and wheels
CHARLOTTE, N.C., Sept. 1 (UPI) -- Goodrich announced it has received a contract to provide the Air Force's fleet of C-130 heavy lift transport aircraft with life-cycle maintenance services.
Pakistan to make its own drones
ISLAMABAD, Pakistan, Aug. 31 (UPI) -- Pakistan, which has been seeking drone technology from the United States, has decided to make the pilotless plane on its own for its air force.
C-17 Engine Support Contract Worth About $1.4 Billion
Filed under: Boeing, Business Line, Companies, Congress, Contract Additions, Contract Awards, Department of Defense, Events, Military Aviation, Pratt & Whitney, Services, U.S. Air Force, logistics, production program
Last week we wrote about the award to Boeing of the C-17 maintenance support contract. Now the Air Force is getting ready to award that company and Pratt & Whitney a contract to support the engines of the transport fleet. If all options on the contract are exercised it could be a three year one worth $1.4 billion.
Because C-17 production has been ended by the Obama Administration these kind of support contracts are the only work available for the aircraft. Both Boeing and P&W are looking at issues due to the decision to cancel the F-22 as well. P&W made the engines for that aircraft.
Most programs cost is the long term support and this is certainly a viable business model for many companies. There is no requirement that the be done by the Original Equipment Manufacturer (OEM) although in this case the OEM is getting the work. In the past especially as the equipment gets older other companies are able to get the business.
Northrop Gets Two Big Sustainment Contracts
Filed under: Boeing, Business Line, Companies, Contract Awards, Department of Defense, Events, Military Aviation, Northrop Grumman Corp., Services, U.S. Air Force, U.S. Navy, logistics
Like Boeing recently winning a billion dollar support contract from the Air Force for the C-17 fleet Northrop Grumman received two large sustainment contracts yesterday. One each from the Air Force and the Navy. This kind of work certainly represents a good revenue stream for the contractors developing and producing large systems.
The first is for sustainment and maintenance of the B-2 fleet. This contract may be worth up to $3.4 billion over the next several years. The twenty aircraft fleet requires substantial support due to the complicated nature of the materials that it is made out of. The B-2 has been active in the former Global War on Terrorism as it does carry a large payload of conventional weapons.
The second contract is to refuel and refurbish the U.S.S. Theodore Roosevelt (CVN-71). This was the third Nimitz class carrier to be built. This contract has a value of over $2.4 billion and will cover a three year period of work. This is a one time maintenance action that is expected to continue the life of the ship out 2036. As part of the contract Northrop Grumman at Newport News shipyard will upgrade a whole host of systems and improve the capability of the ship overall.
These types of contract are very valuable to a company as they provide a steady stream of income over several years. The major cost of a modern weapon system is not the development or procurement but the sustainment over the very long life that are exhibited today. The United States for example is flying fifty year old B-52 aircraft and driving twenty-five year old M1 tanks. Both systems have received constant maintenance and upgrades over the years keeping them relevant to the modern war fight.
Wyle assembles teams for NETCENTS-2
EL SEGUNDO, Calif., Aug. 25 (UPI) -- U.S. company Wyle announced it has assemble teams to pursue contracts for components of the Air Force's Network Centric Solutions-2 contract vehicle.
BAE to train Brunei air force pilots
TAMWORTH, Australia, Aug. 21 (UPI) -- The Royal Brunei air force has selected BAE Systems' Tamworth Flight Training Center to send pilots for specially designed flying instruction.
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