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
UAVs ordered by Special Operations
Filed under: Contract Awards, Heckler Koch, Military Aviation, US SOC, production program
The US Special Operations Command awarded a contract to buy small UAVs. See an article here. AeroVironment will provide their small Puma AE to the command. This illustrates that the USSOCOM is a separate entity within the DoD and can do its own acquisition. In the past they would have to rely on the main services to procure their equipment, but they now have their own development and procurement funds. The most recent key split between USSOCOM and the Army was the decision to go with a different rifle then the M4/M16. The Special Ops guys bout HK’s SCAR. For more on that see this.
Air Force orders HC/MC-130 aircraft
Filed under: Contract Awards, Lockheed Martin, Military Aviation, U.S. Air Force, production program
The US Air Force placed a contract wit Lockheed Martin for six HC/MC-130J aircraft. This $470 M award was using the FY08 Advanced Procurement with the rest of the order being paid for in FY09. See a press release here. These aircraft will most likely support operations by US Special Forces Command, and are a variant of the C-130J that has been purchased by the USAF, Marines and foreign companies for the last few years.
Stryker is fully funded
Filed under: Federal Budget Process, U.S. Army, production program
This article says that the FY09 Defense Budget includes $1 B for the Stryker system. I am assuming that this means all types of funding, not just procurement. $1 B would buy a lot of Strykers, but this amount probably includes the Operations & Maintenance and any R&D funding for the program. As a good example of an article that highlights how important contracts are to an area it brags about the jobs “saved” by the budget. The local Congressman takes credit for the funding. One hopes that the DoD budgets based on need and requirements, not as a job program.
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.
V-22 money spread around
Filed under: Bell, Boeing, Contract Awards, Eaton, Military Aviation, U.S. Air Force, U.S. Marine Corps, production program
As part of the recent procurement of 167 V-22 Osprey’s by the USAF and USMC the Boeing led team will buy parts from Eaton. The expected revenue for this company from the contract could be over $300 M. See a story here. Eaton makes parts for the tilt rotor aircraft. This again illustrates the spillover effect from these large procurement contracts. Companies all over the world participate in the production of parts and services for the total systems. Gone are the days where one company does all of the work.
JSF costs levelling
Filed under: Federal Budget Process, Lockheed Martin, Military Aviation, U.S. Air Force, U.S. Navy, development program
On Monday the Pentagon released the annual Selected Acquisition Reports (SAR) this is a formalized report that goes to Congress that details the performance of Acquisition Category (ACAT) ID and IC programs. Congress and OSD can also add programs to the list that don’t meet the ACAT I categories. See the press release here. In a related move the USAF and Lockheed Martin released an audit of the JSF program that shows that cost growth is leveling off. See that story here. Read more
FMS Position posted on DefenseProcurementNews.com
Rakotis.llc posted an opening on our Job Board for a research position looking at weapon system historical pricing. This will support an entity in their negotiations for weapons procurement. For more information see the announcement here.
Jesse Jackson editorilizes in favor of Boeing for KC-X
Filed under: Boeing, Commentary, Contract Awards, EADS, U.S. Air Force, commercial aviation, logistics
In another demonstration of why moving the headquarters of their company to Chicago was a good idea, Boeing gets Jesse Jackson to publish an editorial in The Washington Times in favor of them winning the KC-X contract. See the essay here. The Air Force is supposed to announce the winner by the end of the month. Read more
Pentagon May Begin to Budget Appropriately
Filed under: Department of Defense, Editorial, Federal Budget Process
Since the current war is a “Long War”, it would make sense for the Pentagon to move its wartime expenses into its regular budget appropriation. Currently, the annual appropriation funds the core of the military such as training, bases in America, regular procurement and support. The cost of the war is paid through supplemental appropriations. These are mainly the war’s Operations and Maintenance (O&M) costs and combat loss replacement of hardware. Occasionally the Pentagon will add some R&D and regular procurement into the supplemental requests, but these do not always make it through the process. According to this article at Defensenews.com, there is a proposal to include the costs of the war in the regular budget process. This would start with the FY10 Budget, which would be submitted to Congress in February, 2009. No idea if the next President would support this.
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