Department of Defense Willing to do KC-X with only Boeing

February 20, 2010 by admin · Comment
Filed under: BNET, Boeing, Department of Defense, KC-X, KC-X Tanker News, Syndicated Industry News 

In a post on BNET Industries, Matthew Potter notes that the Department of Defense is willing to go ahead with only Boeing bidding on the KC-X:

The Secretary of Defense Robert Gates in testimony to the House Armed Services Committee made it clear that the Defense Department and U.S. Air Force will release the Request for Proposal (RFP) for the new KC-X tanker and award a contract even if only Boeing (BA) submits a proposal. The Department hopes that the Northrop Grumman (NOC) and EADS (EADS:P) will submit a bid but will go forward with the planned contract even if they don’t.

In early December Northrop Grumman’s CEO sent a letter to the Air Force stating that due to the terms of the draft RFP they felt that it so favored Boeing that they and their partner EADS, parent of Airbus, would not submit a proposal. Northrop had won the contract in 2008 only to lose it on protest by Boeing with the Government Accountability Office (GAO) saying that the Air Force changed the requirements and was not completely fair to Boeing. An earlier attempt to award Boeing a lease for KC-767 aircraft collapsed amid scandals and Congressional desire to have contest.

Read the entire post Defense Department Willing To Do KC-X With Only Boeing Bid for more.

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F-35 Program Has Issues DCMA Says

November 19, 2009 by Matthew Potter · Comment
Filed under: Boeing, Business Line, Companies, Congress, Department of Defense, Events, Federal Budget Process, Lockheed Martin, Military Aviation, Restructuring, Services, U.S. Air Force, U.S. Marine Corps, U.S. Navy, development program, production program 

The F-35 Joint Strike Fighter (JSF) has become the aviation program in the Obama defense budget. This multi-variant, multi-service aircraft will be the only new tactical aircraft built in the United States for several years now that the F-22 Raptor was canceled in the 2010 budget. In fact Secretary of Defense Robert Gates wanted to speed up production and testing of the aircraft in order to replace the aging F-15 and F-16 fleet more quickly.

Earlier this summer there were reports that a review panel had found the potential for delays and cost growth in the program that would seriously affect the plans for the aircraft. Yesterday there were reports that the Defense Contract Management Agency (DCMA) has been reporting that the program is facing production and test delays as well as having cost issues. DCMA monitors contractors for performance and delivery and reportedly Lockheed Martin and its supporting contractors are already behind on the latest schedule established in May, 2008.

When the budget was announced with the decision to cancel the F-22 and focus on the F-35 some doubts were raised that the plan would work out. The schedule was not firm enough and cost was still being worked out for the three different aircraft being developed for the U.S. and its Allies. The F-35 if unit costs do rise significantly could see lower annual buy quantities which stretches out production and extends the time the older aircraft must be flying. While it is certainly possible that the schedule problems may be overcome delays and cost increases will undermine the reasoning behind the whole proposed Obama aviation modernization budget. This report may give Congress pause and interest in re-starting the F-22 production.

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Oshkosh Defense Receives $438 Million Order for Additional 1,000 M-ATVs — Press Release

November 12, 2009 by Matthew Potter · 1 Comment
Filed under: Business Line, Companies, Contract Additions, Events, Oshkosh Truck Corp, Press Releases, logistics, production program 

Oshkosh Defense Receives $438 Million Order for Additional 1,000 M-ATVs

OSHKOSH, Wis. — Nov. 11, 2009 — Oshkosh Corporation (NYSE:OSK) announced today it has received an additional $438 million award from the U.S. Army Tank-automotive and Armaments Command Life Cycle Management Command (TACOM LCMC) for 1,000 MRAP All Terrain Vehicles (M-ATV). This is the fifth award Oshkosh has received to supply M-ATVs and brings the total number of vehicles Oshkosh will deliver to 6,219. The aggregate amount of the five awards is valued at more than $3.2 billion.

“The most significant way we can show support for our Armed Forces is high rate, quality production of these important vehicles that provide the mobility and survivability necessary for the harsh Afghanistan terrain,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer. “Additionally, through our extensive network of aftermarket services, we are supporting the vehicles in-theater with parts supply and field service representative support.”

Since receiving the initial award on June 30, 2009, Oshkosh has delivered ahead of its contracted, accelerated delivery schedule every month and will ramp production up to 1,000 vehicles per month in December. Existing Oshkosh Defense manufacturing facilities have available production capacity for all current and pending military vehicle programs, including M-ATV and the U.S. Army’s Family of Medium Tactical Vehicles (FMTV), as well as any surges in production.

“Oshkosh Corporation is also extremely honored to welcome U.S. Secretary of Defense Robert Gates, who will be visiting Oshkosh on Thursday (Nov. 12) to thank our employees who are working on the M-ATV project for all their hard work and dedication,” Bohn added.

The Oshkosh® M-ATV is based on the proven Medium Tactical Vehicle Replacement (MTVR) chassis and uses the Oshkosh TAK-4® independent suspension system to provide superior mobility, including 16 inches of independent wheel travel and a 70 percent off-road profile capability. The TAK-4 system has undergone more than 400,000 miles of government testing and is being retrofitted on more than 2,400 legacy MRAPs for improved mobility. The suspension system is featured on more than 10,000 MTVRs used by the U.S. Marine Corps and Navy Seabees, as well as on the Army’s next-generation Palletized Load System (PLS) and the Marine Corps’ Logistics Vehicle System Replacement (LVSR).

Oshkosh Defense teamed with Plasan North America to provide an advanced armor solution for the M-ATV. Plasan also developed the armor system used on more than 5,000 legacy MRAPs and thousands of Oshkosh MTVR Armored Cabs already in theater.

About Oshkosh Defense
Oshkosh Defense, a division of Oshkosh Corporation, is an industry-leading global designer and manufacturer of tactical military trucks and armored wheeled vehicles, delivering a full product line of conventional and hybrid vehicles, advanced armor options, proprietary suspensions and vehicles with payloads that can exceed 70 tons. Oshkosh Defense provides a global service and supply network including full life-cycle support and remanufacturing, and its vehicles are recognized the world over for superior performance, reliability and protection. For more information, visit www.oshkoshdefense.com.

About Oshkosh Corporation
Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corp. manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Medtec®, Jerr-Dan®, Oshkosh Specialty Vehicles, Frontline™, SMIT™, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, log on to www.oshkoshcorporation.com.

®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.

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House Moves To Keep VH-71 Increment One Alive

July 20, 2009 by Matthew Potter · Comment
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.

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Northrop Tries To Save Kinetic Energy Interceptor

June 12, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Congress, Department of Defense, Events, Federal Budget Process, MDA, Northrop Grumman Corp., Restructuring, S&T, Services, development program, missile defense 

Update — On June 10th the Missile Defense Agency (MDA) terminated the Kinetic Energy Interceptor (KEI) for the convenience of the government. This meant that all of Northrop’s lobbying to continue the program to at least conducting the first key test in the program was wasted.

Moving quickly like he has on the FCS and VH-71 programs the Secretary of Defense Robert Gates had another stop work order issued for a program recommended for cancellation in the 2010 budget. MDA told Northrop Grumman to halt the KEI program. This $4 billion contract had only recently been issued and the first test flight of the propulsion system was planned for later this year.

Congress has shown a great deal of support for this program recently and the decision to end it was not well received. There was some concern expressed that the program had not been given a chance to demonstrate its capability. The total missile defense budget saw almost a twenty percent cut with this and the Ground Based Mid-Course system making up the bulk of that money. The plan is to focus on the Navy’s system as well as shorter ranged Army ones.

Northrop has proposed that even with the termination of the program they will still be able to meet schedule and complete the booster test. This may be an attempt to sway Congressional and Administration support for continuing the program beyond 30 September 2009. If they really can meet this test schedule and the history of missile defense programs is not in their favor due to the complexities of the tests and technology then it might help them carry the program over.

A Northrop Grumman video on the program is below which is kind of amusing as it is done as a fake newscast:

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Representative Asks For Tanker Bid Delay

August 24, 2008 by admin · Comment
Filed under: Contract Awards, EADS, Military Aviation, Pratt & Whitney, U.S. Air Force 

U.S. Rep. Joseph D. Courtney, from Connecticut, has written to Secretary of Defense Robert Gates to ask him to delay the renewed bidding for the $35 billion aerial refueling tanker contract. “It is important to get this decision right,” Courtney said, because it is “one of the most critical components of our national security.” Courtney is particularly concerned that there be adequate time for the RFP “to be vetted by the competitors and evaluated by Congress.”

The Pentagon is committed to a quick timetable, but Courtney argues that such an “unnecessarily aggressive timeline for a final decision, will once again tilt the outcome” in favor of EADS. Courtney is very interested in the process, because the Boeing tanker’s engines would be made by East Hartford-based Pratt & Whitney.

More details on Courtney’s letter can be found at Hartford Business.

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US law prevents Australia from acquiring F-22

February 25, 2008 by Matthew Potter · Comment
Filed under: Australia, Department of Defense, FMS, Federal Budget Process, Lockheed Martin, Military Aviation, U.S. Air Force, production program 

Australia has expressed an interest in procuring F-22 Raptor aircraft. Currently they are planning on buying JSF ultimately. Currently US law prevents the export of the F-22. In this article from News.com.au, the US Secretary of Defense, Robert Gates, expresses the sentiment that Australia would be good stewards of the F-22 if they received them. Obviously the law is to prevent the transfer of what is considered the best technology that the US has, but there are certain allies in the past that have been able to share it. As previously discussed technical transfer laws have become very restrictive and have affected US programs.

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