Mixed Reactions To Proposed NASA Budget
The budget for NASA in 2011 is causing different reactions among those involved in developing and executing the U.S.'s manned space program. The...Leaked Budget Document Shows Restructure Of JSF Program
A leaked document about the 2011 budget shows that the Pentagon is going to restructure the JSF program to spend more on development and less on...Japanese Budget Thrown Into Disorder
Japan's new liberal government is proposing the largest budget in the country's history. At the same time some military programs are being...Afghanistan Eating Into British Investment In Defense And U.S. May Follow
England's Royal Air Force is supposedly preparing a list of suggested cuts to existing forces and bases to get ahead of the next budget. The idea...Good News For Boeing In 2010 As More C-17 Transports Will Be Ordered
In a piece of good news for Boeing it looks like Congress will continue to buy C-17 transport aircraft in the 2010 budget despite requests from the...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...Boost For General Dynamics In House Version Of Defense Budget
August 12, 2009 -- Update — Facing strong pressure against this addition to the budget in the Senate as well as strong criticism from the Obama Administration,...Boost For General Dynamics In House Version Of Defense Budget
August 12, 2009 -- Update — Facing strong pressure against this addition to the budget in the Senate as well as strong criticism from the Obama Administration,...Boost For General Dynamics In House Version Of Defense Budget
Update — Facing strong pressure against this addition to the budget in the Senate as well as strong criticism from the Obama Administration, the Pentagon and the media the House will probably remove the extra aircraft. It may have to be done in conference or perhaps they will bring the bill up for a [...]House Moves To Keep VH-71 Increment One Alive
Filed under: Agusta Westland, Business Line, Companies, Congress, Contract Awards, Department of Defense, Events, Federal Budget Process, Lockheed Martin, Military Aviation, Restructuring, Services, U.S. Navy, development program, production program
The various defense appropriations and authorization bills are working their way through the House and Senate. Many items have been included not requested by the Obama Administration or Secretary of Defense Robert Gates. This really is not surprising as Gates attempted to cut a lot very quickly. He spared no service cutting Air Force F-22 and C-17 aircraft, Navy VH-71 and destroyers, and Army vehicle and missile defense systems. Congress has pushed back on certain programs.
One that they are trying to keep alive is the VH-71 helicopter for use in transporting the President. This program has not only been unfunded in the President’s 2010 budget but Lockheed Martin has been told to stop work. The company and the Pentagon are negotiating termination costs.
The House Appropriation Defense sub-committee, though, included almost half a billion dollars to try and utilize the Increment One aircraft already procured. The program was structured with two increments of aircraft, the first being basic ones to be used to support testing and development. A larger buy in five or so years would have all the required equipment. To date the U.S. has invested about $3 billion in the program. The House wants to see if some use could be derived of the aircraft already delivered.
While the current fleet of VH-2 and VH-60 aircraft have served the President well they are somewhat dated. The VH-71 would have more modern survivability and communications equipment with greater range and lift. The strenuous requirements are what led to the programs cost and schedule growth. There will be more to come on this issue to say the least.
India Releases Helicopter Requests For Proposals
Filed under: Boeing, Business Line, Companies, Countries, Events, FMS, India, Military Aviation, Proposal, production program
India has released this week two separate Requests for Proposals (RFP) for new helicopters. The first one is to purchase twenty-two advanced attack helicopters. The second for fifteen heavy lift aircraft. India faces many of the same problems that the Allied forces in Afghanistan do because of the high, hot environments that aircraft must fly in.
The country had released a RFP last year for attack helicopters but withdrew after receiving non-responsive bids. India has looked at major upgrades to its armed forces by broadening the base of whom they buy from. Rather then relying primarily on Russian or British equipment Israel and the United States have begun to make inroads into the market. India also had invested heavily in domestic development and production but to get more technology faster has started buying overseas in greater amounts.
With the new proposals Boeing is considering a bid for each. They make the AH-64 Apache and CH-47 Chinook both heavily used in Afghanistan by the U.S. and Allies. Boeing is also looking at taking major hits in the Obama budget and will try to counter that with sales overseas.
Navy Awards Advertising Contract
Filed under: Business Line, Campbell-Ewald, Careers, Contract Awards, Events, Michigan, Services, States, U.S. Navy, logistics, training
The Navy continued its relationship with advertising firm Campbell-Ewald by awarding a $800 million five year contract. This is the second largest account the company handles next to its Chevrolet advertising. With the recent report that the Obama administration cut the Chrysler advertising budget as part of the bankruptcy deal it may be that Campbell-Ewald best customer will be the Federal government.
As reported with the Army National Guard that despite meeting recruiting goals the Navy will keep advertising. The current economy is credited with much of the recent performance of the services meeting their recruiting goals. While this plays a role a good consistent advertising campaign helps the military keep up the high quality of recruits.
Obama’s Budget Hits Orbital Hard
Filed under: Boeing, Business Line, Companies, Congress, Department of Defense, EADS, Events, Federal Budget Process, MDA, Northrop Grumman Corp., Orbital Systems, Restructuring, Services, development program, missile defense, space
Orbital Sciences stock took a pounding last week as one of its major programs was proposed to be canceled by Obama and Secretary of Defense Gates. Missile defense programs along with the F-22 and FCS wheeled vehicles took the biggest in the budget. If the budget moves forward with the planned ending of major programs other companies may see their stock affected.
The upside though is that if the restructuring of the budget goes forward it will provide opportunities for other companies. There will also be new programs eventually as the need for some of these — like the VH-71 — are still there. The next big contract that seems will be awarded is the KC-X tanker replacement some time next year. A new competition will be held between EADS and Boeing. Currently it looks like the award won’t be split as some had hoped for.
India steadily increases defense spending
Filed under: England, India, Military Aviation, S&T, development program, logistics, production program
The headline on this article in the Daily Telegraph is a little misleading once you read it. India is on a path to more then double defense spending in the next twenty years, where it will be higher then the current UK’s budget. For India to exceed Britain’s budget it would take the UK holding spending steady, and actually adjusted for inflation, reducing it. It is certainly possible to imagine that the UK, and the US for that matter, may have to reduce spending as the budgetary reality catches up to them regarding the cost of social services and deficit spending. The other point of the story the money that India is putting into updating and modernizing their military by moving to buying advanced Western weapons rather then relying on Russian and indigenous producers is probably more important then the amount of spending.
The article by David Blair and Thomas Harding can be found here.
Canada starts over on Coast Guard upgrade program
Filed under: Canada, Proposal, development program, logistics, production program
The Canadian Federal Government had to reject both proposals for a mammoth contract to upgrade their surface fleet. Canada had planned to build a new fleet of patrol vessels and support ships, but both proposals were considered too expensive. This means that the Government will either have to scale back their requirements or increase the planned budget. Give them credit, as usually an attempt to award a contract like this with a plan to get costs lower or under control would probably not work.
For more see GlobeandMail.com.
House marks appropriations bill
Filed under: Bell, Boeing, Congress, Contract Awards, EADS, Federal Budget Process, Military Aviation, Northrop Grumman Corp., development program, logistics, production program
The House Appropriations Committee marked the FY09 budget before taking their August recess. See a story here. The Army’s struggling Armed Reconnaissance Helicopter (ARH) program was marked to delete 13 aircraft, and the Navy’s Presidential Helo was also decremented. The House also ordered that consideration of jobs would be a criteria for the source selection of the KC-45 tanker. Boeing won its protest of the award to Northrop-Grumman and EADS and forced DoD to reconsider the contract. The Senate needs to also mark the bill and then there will be a Conference mark up as well.
ARH in jeopardy
Filed under: Bell, Congress, Department of Defense, Federal Budget Process, Military Aviation, Restructuring, U.S. Army, development program
The soaring costs of the ARH program have caused a Nunn-McCurdy Cost Breach. See a story here. The 40% increase in unit cost has caused the Army and DoD to rethink, again, proceeding with the contract. Nunn-McCurdy cost breaches were established in the 80’s as part of the overall reform of Congressional monitoring of programs. Read more
Lockheed gets long lead contract for JSF
Filed under: Contract Awards, England, Lockheed Martin, Military Aviation, development program
Lockheed Martin was awarded a $197 M contract for long lead items for 10 JSF aircraft. See the story here. These will be procured for the US Navy and the UK. These are the version capable of Vertical Take Off and Landing (VTOL) operations. Ultimately they will replace the Harrier in service. Like many programs there are certain items that need to be purchased far in advance of delivery and these long lead items are usually funded incrementally from year to year. Aviation programs will receive Advanced Procurement in the budget to support these activities.
Congress begins to debate KC-45 FY09 funding
Filed under: Boeing, Congress, Contract Awards, Department of Defense, EADS, Federal Budget Process, GAO, Northrop Grumman Corp., Protest, U.S. Air Force, commercial aviation, logistics
As part of the beginning of the mark-up of the FY09 President’s budget by the various House and Senate committees Congress is beginning to debate the future of the KC-45. According to this article, Congressman Young from Florida has suggested that the US Air Force split award the tanker contract. This would mean half goes to EADS, the winner, and half to Boeing. While this may be a politically judicious solution it has many impracticable aspects. First the cost increase to the total program would be significant as there would now be two sources of parts and two training systems set-up for the different aircraft. Second the Air Force would have to revisit the whole concept of basing and deployment as you would now have a mix of larger and smaller aircraft. The basis for the whole program is a capability requirement that feeds from larger OSD requirements to support the actual warfight. The split might mean more then the current planned buy would be necessary – another cost increase. The DoD and USAF are taking a position of waiting for the GAO ruling in about 40 days before anything is decided. Congress would be advised to do the same.
Even small contracts make a difference
Filed under: Contract Awards, U.S. Army, logistics, production program
Here is a little article about the Army buying safety gloves. Even this small contract, no value given, will allow the company to hire more workers and invest in machinery. Of course the problem with these kind of contracts is unless the supplier can find new commercial customers or get a continuous stream of DoD orders the jobs will end in a set period of time. Read more
Balfour Beatty Communities Completes Construction of Military Family Housing Project Ahead of Schedule and On-budget
Filed under: Syndicated Industry News
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