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.
Army To Stop Buying AM General’s HUMVEE Vehicles
Filed under: AM General, Business Line, Companies, Events, Federal Budget Process, Services, U.S. Army, logistics, production program
In their 2011 budget request the Army reports that 2011 will be the last year of procurement for the ubiquitous AM General HUMVEE light truck. This four wheeled vehicle replace the venerable Jeep in U.S. military service in 1984. The HUMVEE will still be available for purchase by other U.S. services and for sales overseas but the Army states it has met its Acquisition Objective. There will also be contracts to maintain the existing fleet of vehicles.
The Army though does provide about half the market for the vehicle so the loss will be a blow to AM General. There is a new program in development called the Joint Light Tactical Vehicle (JLTV) that will when complete start replacing the HUMVEE. The U.S. is also investing in thousands of new trucks. Losses in Iraq and Afghanistan have been substantial but one of the reasons HUMVEE production is ending is recently there have been less damaged or destroyed then estimated.
Israel To Buy The F-35 If Their Conditions Met
Filed under: Business Line, Companies, Contract Awards, Countries, Department of Defense, Events, FMS, Israel, Lockheed Martin, Military Aviation, Services, U.S. Air Force, development program, production program
Israel would like to buy the F-35 Joint Strike Fighter (JSF) to add modern, stealthy aircraft to its fleet of F-15 and F1-6 aircraft. As with the previous generation of United States aircraft they would also like the ability to integrate their own electronics and weapon systems on it. The Israelis have done this with all the weapons they have bought or captured over the years.
They rely on their own sophisticated defense industry to develop systems that they would like to put on the various platforms that they operate. The U.S. has resisted the Israeli requests in a bid to protect the technology and systems developed for the F-35. The Israelis have been negotiating this issue for several months and have won most of what they want but the desire to put their own electronic warfare system has things stymied. The U.S. will allow radar and weapons to be added but do not want to open the software at that level to Israel.
The contract could be for up to seventy-five aircraft total making Israel one of the largest purchasers and would certainly help the program facing budget issues and delays. The more that the U.S. is able to sell overseas the lower the average price of an aircraft will be. It behooves the U.S., Lockheed Martin and Israel to work out some sort of deal as the advanced capability of this aircraft will only help Israel in the future.
U.S.M.C. Buys New Engines From BRP For Light Boats
Filed under: Business Line, Contract Awards, Events, Evinrude, Services, U.S. Marine Corps, logistics, production program
The United States Marine Corps awarded BRP a contract to purchase new engines for its fleet of Zodiac Combat Rubber Raiding Craft (CRRC). The contract for at least fift-five Multi Fuel Engines (MFE) is worth about $10 million. The engines are considered a commercial product and are the best MFE available that meet other military specifications.
The Marines will use these engines to power the CRRC to support insertion, patrol and reconnaissance operations along coastlines and rivers. Obviously with these types of missions reliability and performance are important. The engines may run on gasoline, kerosene and jet fuel. They come in two versions: One with an impeller and a conventional propeller model. The Marines are focusing on the impeller model. Because this is a commercially available product they can be delivered in less then six months to the customer.
Air National Guard To Have Role With KC-X
Since 9/11 the U.S. military has moved to integrate even more their National Guard and Reserve Forces. They have been called up at high rates and have received more and upgraded equipment. Currently the Air National Guard of various states like Alabama fly KC-135 tankers. If the full fleet of KC-X aircraft are built then some of the states will receive these new tankers. Recently it was announced that the Air National Guard will provide participation on the KC-X source selection. This is most likely to help make sure that any specific requirements of the Air Guard are considered and is not common with programs of this size.
Air Force retires another KC-135
SCOTT AIR FORCE BASE, Ill., Oct. 6 (UPI) -- The U.S. Air Force retired a KC-135 Stratotanker following more than 50 years of service as part of the effort to transition the airlift fleet to the KC-X.
C-130 setting new standards
MARIETTA, Ga., Oct. 6 (UPI) -- Lockheed Martin began final assembly on the HC/MC-130J Hercules fleet to replace the aging HC-130 fleet serving in operations with the U.S. Air Force.
B-52 gets communication upgrade
WICHITA, Kan., Sept. 30 (UPI) -- The U.S. Air Force B-52 fleet will be integrated with an extremely high frequency system for air and space communication, the Boeing Co. said.
USAF B-52s to get new secure telecom system
WICHITA, Kan., Sept. 29 (UPI) -- The B-52 aircraft deployed as part of the U.S. Air Force fleet are to be equipped with secure Extremely High Frequency Communication Systems to enable them to remain in contact with other elements of the military in space, in the air and on the ground.
USAF B-52s to get new secure telecom system
WICHITA, Kan., Sept. 29 (UPI) -- The B-52 aircraft deployed as part of the U.S. Air Force fleet are to be equipped with secure Extremely High Frequency Communication Systems to enable them to remain in contact with other elements of the military in space, in the air and on the ground.
U.S. Navy integrating fleet standards
NAPLES, Italy, Sept. 28 (UPI) -- The U.S. Navy incorporated the USS Higgins in its plans to integrate naval standards and common operating principle across the entire fleet.
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.
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.
Tornado sustainment phase II deals awarded
LONDON, Aug. 26 (UPI) -- The British Royal Air Force announced contracts have been awarded to support a phase II sustainment program for its fleet of Tornado GR4/4A combat aircraft.
F-35 Completes Aeriel Refueling Test
Filed under: Business Line, Companies, Department of Defense, Events, Lockheed Martin, Military Aviation, Services, U.S. Air Force, U.S. Marine Corps, U.S. Navy, development program, production program
The F-35 Joint Strike Fighter (JSF) Short Take Off/Vertical Landing (STOVL) version completed a refueling mission form a KC-130. This was a successful first using the hose and drogue method of refueling aircraft in air. The Lockheed Martin press release is available here.
The JSF continues to make strides in its development program and is moving forward as its rapid procurement has become the focus of the Obama Administration’s attempts to modernize America’s fighter fleet.
Lockheed Martin tests Aegis for Australia air war fleet
MOORESTOWN, N.J., Aug. 14 (UPI) -- Lockheed Martin Thursday began testing the Aegis weapon system before its deployment on Australia's Air Warfare Destroyer fleet of three new warships. The tests would last four months and, once successful, the system would be installed on the first of the three Australian AWD vessels being fitted out with Aegis by Lockheed Martin.
Saudis seek upgrade of E-3 AWACS, tankers
WASHINGTON, Aug. 12 (UPI) -- Saudi Arabia is seeking technology upgrades for its fleet of 13 Boeing E-3aircraft that could be worth $2 billion for American companies.
Israel Procures New Trainer Aircraft
Filed under: Business Line, Companies, Contract Awards, Countries, Elbit Systems, Events, Israel, commercial aviation, logistics, training
The Israeli Air Force has procured Beechcraft T-6 trainers. These will replace the old Fouga Magistar aircraft used for the last several decades to start the training of Israeli pilots. The Israeli defense contractor Elbit Systems was awarded a contract to provide for the support of these new aircraft.
These two events mirror a trend in the U.S. and England where the trainers used are turbo-prop rather then jets. The use of Contractor Logistics Support (CLS) for training fleets has also gained ground in these two countries. This is because you have a fixed fleet in a non-combat location. There are many benefits to CLS in the areas of cost and reduction in the support tail. Israel has used Elbit for support of training systems for the last seven years. Elbit hopes like all defense contractors to be able to use this experience to win contracts overseas.
Support for the A400M from Spain and Turkey
Filed under: Business Line, Companies, Contract Awards, Countries, EADS, England, Events, France, Germany, Military Aviation, Restructuring, Spain, Turkey, development program, logistics, production program
The Guardian is reporting that these two countries have affirmed their support for their orders from EADS for the new transports. Unlike France, the UK and Germany who have openly discussed canceling or modifying their orders Spain and Turkey have said that they still want the new aircraft. The A400M will be assembled in Spain. There two orders make up about 25% of the planned fleet of the aircraft. It has been decided that the seven NATO countries who have bought the plane will talk every two weeks or so to review the status of the program. The decision on whether EADS would have to pay back the customers due to the two year delay in the program has been extended to May 1st. EADS feels that they need relief both in time and price and really need to renegotiate the contract to account for this long delay. Either canceling the contract or making EADS pay the penalties would be a great blow to the company.
U.S. Department of Defense Still Not Sold on Split Tanker Buy
Filed under: Boeing, Business Line, Companies, Congress, Contract Awards, Department of Defense, EADS, Events, Federal Budget Process, GAO, Proposal, Protest, Services, U.S. Air Force, development program, logistics, production program
Responding to growing pressure from Congress and some in industry to the idea of splitting the KC-X tanker procurement between Boeing and EADS Secretary of Defense Gates said that the idea would be bad policy. The Hill reports that any cost savings from more rapid production would be offset by the increased logistical tail of having two separate systems. In this day and age when the quantities of equipment purchased is minimal the U.S. cannot afford a dual source for one mission. While some have said that this proposal would more rapidly field capability a split fleet would require two supply chains, training networks and support networks. More will be found out when the Obama administration releases its FY10 budget proposal in the near future.
UAE to Buy AMRAAM from Raytheon
Filed under: Business Line, Companies, Contract Awards, Countries, Events, Military Aviation, Raytheon, UAE, production program
Raytheon announced that they had signed a contract with the UAE to provide advanced AIM-120 AMRAAM air-to-air missiles for the nation’s F-16 fleet. Reuters reports that the contract is for over two hundred of the missiles. No contract value was given but it is substantial as the AMRAAM is a fairly expensive system. Deliveries are expected to begin in the 2011 time frame. Over the last five years the UAE has invested heavily in upgrading the capabilities of their armed forces. Most recently they have invested over three billion dollars into missile and air defense capability with the purchase of PATRIOT and THAAD systems from the U.S.
Pratt & Whitney Wins F-22 Support Contract
Filed under: Business Line, Companies, Congress, Contract Awards, Department of Defense, Events, Lockheed Martin, Military Aviation, Pratt & Whitney, Services, U.S. Air Force, UTC, production program
With the March 1st deadline to extend F-22 production looming the current fleet still needs support. Forbes.com reports that the U.S. Air Force awarded United Technology’s Pratt & Whitney group a contract to provide maintenance for the F-22 engines. The contract is worth $285 million. Lockheed and its allies in Congress have been lobbying for another buy of 20 aircraft in the next year. That would require over half-a-billion dollars to fund. Some long lead items have already been funded. The Defense budget may be under pressure in the Obama administration but nobody knows for sure yet. This is a pricey addition to that budget and the money would have to come from other programs.
U.S. Navy Awards AEGIS Upgrade Contract to Lockheed Martin
Filed under: Business Line, Companies, Contract Awards, Events, Lockheed Martin, Services, U.S. Navy, production program
NJBIZ.com reports that the U.S. Navy gave Lockheed Martin a contract to upgrade the AEGIS Weapon System installed on destroyers and cruisers. The almost $80 million contract will improve the software as well as some of the control hardware. The AEGIS system is used with versions of the STANDARD Missile to counter ballistic missiles, aircraft and other threats to ships. It has been been used since the Seventies and has had consistent upgrades over the years. The contract will allow Lockheed Martin to upgrade several ships a year slowly re-equipping the whole fleet.
U.S Air Force Buys 15 C-17 Aircraft from Boeing
Filed under: Boeing, Business Line, Companies, Congress, Contract Awards, Events, McDonnell Douglas, Military Aviation, U.S. Air Force, logistics, production program
The BBC News reports that the U.S. Air Force awarded Boeing a contract to build 15 C-17 transport aircraft. The contract is worth almost $3 billion. The Air Force had been debating whether to buy any more C-17 but Congress provided the funds for these aircraft. The C-17 and C-5 fleet has been used a great deal supporting operations in Iraq and Afghanistan. The C-17 line was building some FMS aircraft for Qatar, UK and Canada but could see an end to production in the near future. This lot will continue the production for several more months.
Northrop Grumman Wins Global Hawk Sustainment Contract
Filed under: California, Contract Awards, Events, ISR, Northrop Grumman Corp., U.S. Air Force
MSNBC reports that the U.S. Air Force gave Northrop Grumman a contract to provide support for the growing Global Hawk strategic UAV fleet. Northrop Grumman manufactures the long range intelligence surveillance aircraft. The contract is valued at over $275 million and will primarily be carried out at Beale AFB in California. Unlike the more tactical Predator and Reaper UAV the Global Hawk is a large aircraft that can fly at high altitudes and long ranges to collect different types of intelligence to support combat operations. The Global Hawk in many ways has replaced the U-2 type reconnaissance aircraft.
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