KC-X Advertisement Makes DoD Unhappy

Northrop Grumman took out an ad this week in the Washington Post supporting its proposal for the KC-X mission. The Wall Street Journal reports that the content of the advertisement made folks over at DoD most unhappy. That is because it quotes an unidentified official as saying the A-330 was $3 Billion cheaper then the B-767 overall. Read more

With Cancellation of E-10 Air Force Moves to Modernize E-8

The US Air Force has been using the E-8 Joint Surveillance Target Attack Radar System (JSTARS) aircraft for almost thirty years. Originally the Air Force planned to supplement it with the new, E-10 Multi-Sensor Command and Control Aircraft (MC2A); but that program was canceled last year. The new sensor for that system was the Multi-Platform Radar Technology Insertion Program (MP RTIP) which also is to go on the Global Hawk long range UAV. As MarketWatch.com reports the Air Force is now moving to insert the MP RTIP sensor onto the E-8 airframe. A contract was awarded to Northrop Grumman to begin that process. Read more

US Army Buys More Hunter UAV Systems

The US Army awarded Northrop Grumman a contract valued at $97 M for Hunter Unmanned Aeriel Vehicles (UAV) and ground control stations. The Los Angeles Times reported on the order. Interestingly the article said that the systems were being procured through the “contractor logistic support 2008 contract”. Contractor Logistics Support is usually where a civilian company is paid to provide the maintenance and support for the system, rather then using organic military personnel and parts. It may be that the contract has both production and CLS lines on it.

USAF awards satellite support contract

The US Air Force awarded Northrop Grumman a contract worth over $200 M to support the DSP constellation of satellites. Northrop-Grumman will make sure the satellites are working and provide analysis of the data they collect. The company manufactured the infra-red sensors installed on them. DSP primary mission is to detect the launch of missiles and rockets. They have been used for over thirty years and will eventually be replaced by the SBIRS system.

See the press release at MarketWatch.com.

Northrop Grumman Receives Facilities Contract

Northrop Grumman has received a $13 million, 3 year contract from the the U.S. Central Command to provide facilities maintenance and operations support to the its headquarters at MacDill Air Force Base, Fla., and forward headquarters in Doha, Qatar. The contract requires Northrop Grumman provide CENTCOM with support in four functional areas, location transition support, maintenance and operations support, logistics services support, and project/facilities management.

The contract was awarded through the U.S. General Services Administration.

US Navy continues production of Fire Scout

The MQ-8 Fire Scout UAV made by Northorp Grumman for the Navy entered LRIP last year with a successful Milestone C decision. The Navy has continued production by executing the second year of Low Rate production. The Fire Scout lands and takes off vertically and can operate from the helicopter decks of Navy ship. The system will enter Technical Evaluation this year. The contract is worth over $32 M and is the second of three years of LRIP. Once LRIP and testing is complete the Navy will conduct a Full Rate Production decision to allow the Navy to buy larger quantities with a proven system. The US military has invested heavily in USV over the last ten years with some successes in Iraq and Afghanistan.

See the press release at MarketWatch.com

KC-45 fallout continues

With the decision to not go ahead with the KC-45 recompete and the cancellation of the planned source selection, the Pentagon has decided that due to the decision to cancel the original contract Northrop Grumman, and EADS, will receive some termination fee. This will pay the company for any work that the did while the contract was active prior to the protest and GAO recommendation to recompete the proposal. Termination fees are common for when the Government cancels the contract for administrative reasons. If ti is canceled due to non-performance then it gets a little more difficult. Due to the high visibility of this decision, I am sure the Congress will take a look at any money payed to Northrop Grumman.

See the Los Angeles Times for more on this.

Gates gives up

The Secretary of Defense today canceled the KC-45 re-proposal. He decided that there was not enough time to do this before the end of President Bush’s second term. The announcement was made via a press release this afternoon. Secretary Gates stated that ““It has now become clear that the solicitation and award process cannot be accomplished by January,” he said. “Thus, I believe that rather than hand the next administration an incomplete and possibly contested process, we should cleanly defer this procurement to the next team.”

This decision ends temporarily a seven year saga that started with Boeing being given a lease for 767 tankers, through a proper competition that was thrown out by the GAO, and what was expected to be a quick recompete starting this month.

See the actual release at DefenseLink.mil.

JLTV very important to Oshkosh

Oshkosh Industries has struggled over the last 18 months with the downturn in the economy. The stock is down almost 75% since last September. The slowdown in the world economy, especially the construction industry, has hit the company hard. It has received several US defense contracts for heavy vehicles and MRAPs. It also is teamed with Northrop Grumman on the Joint Light Tactical Vehicle (JLTV) proposal for a new tactical vehicle for the US military. If its team wins that will be a lot of work replacing the ubiquitous HUMVEE used by all four of the US services. That would offset the struggles it has been having with its conventional business lines.

See The Milwaukee Journal-Sentinal article for more.

Boeing’s KC-767 Advanced Tanker Video

Last week, we gave you Northrop Grumman’s tanker advertisement. This week, also courtesy of YouTube, we give you a video of Boeing’s KC-767 tanker in action.

Air Mobility Command General pessimistic on tanker

Gen Lichte, the commander of AMC, expressed concern with the pace of the KC-45 recompete. He is concerned that not only will there be further delays in the award, but that the loser will then protest the recompete. DoD, taking over the competition from the Air Force, had originally planned for proposal submission in August. At Boeing’s request they have delayed this until 1 October, with a goal of awarding the contract by the end of Calendar Year 2008. Boeing is asking for more time, claiming that the requirements may drive them to bid a different aircraft then the B767 previously proposed. EADS and Northrop Grumman will most likely use a proposal that is mostly like the one that won last time. They even had the first KC-45 under construction.

Business Week has an article here.

KC-45 Videos from Northrop Grumman

I found these interesting videos about the KC-45, on YouTube. The first is an advertisement for the tanker; the second focuses on the KC-45 assembly process. They’re both worth taking a look at:

Read more

Former Undersecretary of Acquisition criticizes Boeing

The former Undersecretary of Defense for Acquisition, Technology and Logistics was quoted in a newspaper article criticizing Boeing for wanting a delay in submitting their proposal for the KC-45 recompete. Jacques Gansler who worked in the second Clinton administration said that because of the critical need for the new aircraft if Boeing cannot support the schedule, perhaps they should just not bid. He feels that it would not be proper for the government to give the delay in this situation.

For more see The Guardian.

Boeing and KC-45 in turmoil

After meeting with DoD and the US Air Force to discuss the new tanker RFP due to the GAO upholding their protest, Boeing is now saying that without significantly more time to prepare a proposal they may have to drop out. The new schedule is for the Boeing and Northrop Grumman teams to submit by the end of October with a decision before the new calendar year. Boeing is saying that they may need to bid a larger aircraft then the KC-767 proposed last time due to the fuel capacity and range requirements. A variant of the 777 would have to be used. Boeing supposedly is asking for a more then 180 day delay in the submissions. EADS and Northrop Grumman will most likely submit a tweaked version of their original winning proposal.

For more see The Wichita Business Journal and WashingtonPost.com.

US Air Force to award CSAR-X recompete soon

In a contract that has fallen to the back burner recently due to KC-45 events, the Air Force announced that they would complete the recompete for the CSAR-X by September. Contract award would be soon after. The CSAR-X contract to replace the HH-60 PaveHawk aircraft was originally awarded to Boeing with a variant of the CH-47. Sikorsky and Lockheed Martin protested and won with the GAO ruling that the Air Force did not apply the selection criteria properly. The whole contract was recompeted with Boeing, Sikorsky and Lockheed resubmitting bids.

For more see this article at www.pressconnects.com for the Binghamton area.

Europeon view of KC-45

This article in the Deutsche Welle provides a good round up of the current on goings of the KC-45 recompete. It reiterates that despite rumors on not participating in this round Boeing went ahead and had their meeting with OSD and the Air Force to discuss the RFP. Obviously there is a great deal of interest in Germany, and Europe as a whole, for EADS to win the contract. It would be the largest to date for a primarily European based company.

Boeing moves forward with KC-45

Despite reports earlier in the week, it seems that Boeing will pursue the KC-45 re-proposal. See a story here. The two possible contenders met with US Air Force and DoD representatives to talk through the new RFP. The goal of OSD is to award a contract by the end of the year. The tanker replacement process started 7 years ago with the new delays a KC-145 replacement may not be available until 2012-2014.

Boeing may refuse to bid on KC-45 recompete

Rumors are swirling that Boeing may not bid on the new contract for the KC-45. See an article here. Supposedly Boeing is piqued that the new requirements supposedly favor Northrop Grumman and EADS and will not submit a bid. If there is only one bid it may require the whole process to start over again, of course if DoD and the Air Force change the requirements EADS could claim the same thing and the whole program will get stuck. Unfortunately DoD and the Air Force have to do the new process as GAO upheld the Boeing protest. More to come on this very complicated story.

House marks appropriations bill

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.

Northrop Grumman continues strong performance of defense sector

Northrop Grumman continued the trend of the defense sector by reporting strong earnings and profits. See an article here. There had been some trepidation due to the taking back of the KC-45 contract. The company is able to still win this in December, and if it does it will contribute to further strong earnings and profits.

Congress protests DDG-100 cancellation

Recently the US Navy announced that it was not going to continue the DDG-100 program. Two ships are under construction by Northrop-Grumman and General Dynamics. Not unexpectedly the Senators from the affected states, mainly Massachusetts and Maine, have protested. See an article here. The major recent the Navy cites is the continued cost growth of the program. The first two were projected at under $4 B each, but now the estimates are over $5.5 B. Other than the shipbuilders, Raytheon is the most affected company as it was building the combat system of sensors for the ship. The Navy intends to continue production of the DDG-51 class instead. Read more

Air Force awards omnibus support contract

The US Air Force awarded an omnibus maintenance contract. Northrop Grumman was one of the twelve companies that qualified for the contract. See the press release here. If all parts of the contract are executed the value could be as much as $10 B. Normally how these contracts work the government, here the Air Force’s depots, will issue task orders which the qualified companies may bid on. There is no guarantee that any work will be awarded or any company will get work.

DARPA to make better binoculars

DARPA invested with Northrop-Grumman to develop smart binoculars. See this short note here. The advanced ones will increase the Field of View (FOV), allowing soldiers and sailors to see more of the area. This should provide quicker detection of possible threats. One would think with the fact that these types of optical systems being in use for centuries there would have been earlier attempts to fix this.

DoD and USAF agree to recompete KC-45 contract

In light of the GAO report the USAF and DoD decided to recompete the new tanker contract. See an article here. This, like the CSAR-X, means that a whole new competition will be held. The Air Force will rewrite the RFP and Boeing and Northrop Grumman will resubmit proposals. Much of the work preparing these will be already done which will speed up the process for the bidders.

JTRS AMF subcontract awarded

Lockheed Martin, who won the next increment of the JTRS AMF, awarded a subcontract to Northrop Grumman to provide technology to support production. See an article here. Earlier this year Lockheed Martin was named the winner of the JTRS AMF radio contract. They now have given Northrop Grumman a subcontract to lead the small airborne radio part of the system.

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