TSAT Contract Latest To Be Ended

June 9, 2009 by Matthew Potter · Comment
Filed under: Booz Allen Hamilton, Business Line, Companies, Congress, Department of Defense, Events, Federal Budget Process, Lockheed Martin, S&T, Satellites, Services, U.S. Air Force, development program, space 

Secretary of Defense Gates announced that in the FY10 budget plenty of different programs would be ended. Unlike previous administrations who decide to de-fund a contract in next year’s budget but let the current year play out Gates has aggressively ended the contracts. The latest one announced was the U.S. Air Force’s Transformational Satellite Communications System (TSAT).

When the budget plans were announced in April the plan was to end this system and begin development of two new separate systems for the same mission. The TSAT like most military satellite and space programs had suffered delays and cost problems. They were not insurmountable but as time goes by the Pentagon often looks at different or new requirements that the older planned systems may not meet.

So following in the footsteps of the VH-71, Future Combat Systems (FCS) and the Kinetic Energy Interceptor (KEI) programs the TSAT contracts were terminated for convenience today. There were two separate contracts — one with Lockheed Martin for mission operations systems and one with Booz Allen Hamilton for systems engineering.

One idea of doing this so fast is to prevent Congress from keeping the program alive through continuing funding despite the Pentagon’s request. Without an active contract it will be hard to do this in the next year. More to come on all of these various moves as the budget makes its progress.

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U.S. Department of Defense Still Not Sold on Split Tanker Buy

March 19, 2009 by Matthew Potter · Comment
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.

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