BRAC Work Continues At Fort Sam Houston For Eaton
Filed under: BRAC, Business Line, Companies, Congress, Contract Additions, Contract Awards, Department of Defense, Events, Services, States, Texas, U.S. Air Force, U.S. Army, logistics, medicine
The last round of the Base Realignment and Closure (BRAC) act in the United States moved to consolidate development and training centers. One base that is gaining from this policy is Fort Sam Houston in San Antonio, TX. Because it was decided to move most of the military’s medical training to this location much work is being done to expand the facilities there. Eaton Corporation received a further contract addition worth $8 million.
The contract is for electrical services and parts to support the construction of the required facilities. One key component of this is a 425 bed hospital that Eaton Corp. has been working on.
U.S. Army To Buy More Cargo Parachutes
Filed under: BRS, Business Line, Companies, Contract Additions, Contract Awards, Events, Military Aviation, Services, U.S. Army, logistics, production program
BRS Aerospace a part of Ballistic Recovery Services Inc. (BRS) received a contract modification from the U.S. Army to increase its production of cargo parachutes. The $8 M contract will require almost a fifty percent increase in production. The company will have to significantly expand its workforce at its two plants.
Due to conditions in Afghanistan the U.S. military often carries out air drops of supplies and equipment. This means that the stock of parachutes has been used up over the last nine years. This contract will probably replenish stocks while allowing continued resupply missions
CSC To Continue Supporting Army’s LMP Transformation
Filed under: Business Line, CSC, Companies, Contract Additions, Contract Awards, Events, IT, Services, U.S. Army, logistics
The U.S. Army has been designing and executing the Logistics Modernization Program (LMP) for several years. LMP is a computer and web based system utilizing SAP to provide integrated logistics management of “supply, demand, asset availability, distribution, and maintain data, financial control and reporting.” It replaces two older systems and is slowly being rolled out across the various Army acquisition and sustainment organizations.
CSC (CSC) is one of the prime contractors involved in developing and supporting the program. The Army announced yesterday that they received execution of further contract modifications worth over $260 million to continue to provide this support. The current operations in Iraq and Afghanistan have placed great stress on the U.S. Army’s logistics train. LMP’s main goal is to expedite the ordering, tracking and receipt of key equipment to increase operational readiness and capabilities.
Kongsberg To Build More CROWS
Filed under: Business Line, Companies, Contract Additions, Contract Awards, Countries, Department of Defense, Events, Konsberg, Norway, Pennsylvia, Services, States, U.S. Army, U.S. Marine Corps, production program
The U.S. Department of Defense added to a contract previously won by Kongsberg of Norway for Crew Remote Operated Weapon Stations (CROWS). The value of this addition is over $800 million. The add to the existing contract will purchase a further 3,849 CROWS bringing the total to over 10,000.
The contract will be done over five years at Kongsberg Pennsylvania facility. CROWS allows weapons to be operated by a gunner sitting in the vehicle rather then up in the turret. This provides maximum protection to them in combat. CROWS are installed on HUMVEES as well as MRAP vehicles and are used in Iraq and Afghanistan.
Oshkosh Defense Receives $438 Million Order for Additional 1,000 M-ATVs — Press Release
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.
Oshkosh Defense Awarded Additional 923 M-ATVs Valued at $408.5 Million — Press Release
Filed under: Business Line, Companies, Contract Additions, Contract Awards, Events, Oshkosh Truck Corp, Press Releases, Services, U.S. Army, logistics, production program
Oshkosh Defense Awarded Additional 923 M-ATVs Valued at $408.5 Million
OSHKOSH, Wis. — Oct. 12, 2009 — Oshkosh Corporation (NYSE:OSK) announced today it has received an additional $408.5 million award from the U.S. Army Tank-automotive and Armaments Command Life Cycle Management Command (TACOM LCMC) for 923 MRAP All Terrain Vehicles (M-ATV) to be delivered to the U.S. Armed Forces through March 2010.
This is the fourth award under the M-ATV delivery order first awarded in June 2009, and brings the total number of vehicles Oshkosh will supply to 5,219. The aggregate amount of the four awards is valued at $2.76 billion.
“Our customer is preparing to field the first Oshkosh M-ATVs for use by warfighters in the Afghanistan theater of operations,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer. “As these vehicles begin making their way onto the battlefield to ensure our men and women are well protected and their missions remain on the move in even the harshest environments, we will continue to make the vehicle’s high-quantity production our top priority and provide any additional program support as needed.”
Answering an urgent need request for soldiers and Marines serving in Afghanistan, Oshkosh continues to deliver vehicles ahead of the government’s accelerated schedule and met September’s delivery requirement on Sept. 22. The company will ramp production up to 1,000 vehicles per month in December and continue at that level through at least March 2010. 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.
The Oshkosh® M-ATV’s superior mobility, which includes a 70 percent off-road profile capability, is achieved through the Oshkosh TAK-4® independent suspension system. The system is featured on more than 10,000 Medium Tactical Vehicle Replacements (MTVR) used by the U.S. Marine Corps and Navy Seabees, and is being retrofitted on more than 2,400 legacy MRAPs for improved mobility in Afghanistan. The TAK-4 system, which has undergone more than 400,000 miles of government testing, also is used 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.
Algeria Struggles With Russian Arms
Filed under: Business Line, Companies, Contract Additions, Contract Awards, Countries, Events, MiG, Military Aviation, Russia, logistics, production program
The former Soviet Union used to provide weapons to its proxy states and allies across the world for almost nothing. They did this as a way to reward them and also to allow them to fight their wars for them. Many times the weapon systems were stripped down versions of their own aircraft with less capable engines, electronics and weapon systems. Some countries like North Vietnam did receive the best that the USSR could supply to help them in their wars.
Since the break up of the Soviet Union the new Russia has seen a huge decrease in the size of their military and industrial base. They have attempted to increase the overall technology level of their weapons but have had limited funds to invest. The Russian Government has attempted to sell modern systems overseas to help fund their procurements and provide R&D dollars. To this end the MiG and Sukhoi fighters have often been exported and are contenders in India’s new fighter programs.
It is now reported that Algeria is having problems with their advanced MiG-29 fighter aircraft ordered back in 2007. The thirty-four aircraft were part of a much larger arms deal signed as a way for Russia to forgive some of Algeria’s debt. Algeria supposedly returned the fifteen aircraft delivered and canceled the remaining ones due to poor performance and quality.
According to a Russian investigation the problem has been that one of the sub-contractors for the aircraft provided not new parts but ones that had been recycled from old aircraft. This has been an issue in the past in all countries with aircraft production and repair. It is a scam that may often happen with new part prices being paid for old, reconditioned parts. This problem led to the issues with Algeria ending their order.
The problem faced by Russia is that it needs the good will of its customers to keep the money flowing as without the foriegn funds it might not be able to keep sustaining parts of its arms industry. There is just not enough domestic business. Russia has been using some of its oil revenue to modernize their military but still needs to keep up its foriegn sales.
Oshkosh Defense Awarded Additional 352 M-ATVs worth $189 Million — Press Release
Filed under: Business Line, Companies, Contract Additions, Contract Awards, Events, Oshkosh Truck Corp, Press Releases, logistics, production program
Oshkosh Defense Awarded Additional 352 M-ATVs worth $189 Million
OSHKOSH, Wis. — Sept. 14 2009 — Oshkosh Corporation (NYSE:OSK) announced today it has received an additional $189 million award from the U.S. Army Tank-automotive and Armaments Command Life Cycle Management Command (TACOM LCMC) to deliver an additional 352 MRAP All Terrain Vehicles (M-ATV) to the U.S. Armed Forces by March 2010. The award also includes aftermarket parts packages.
This is the third award under the delivery order first awarded in June 2009. To date, TACOM LCMC has ordered a total of 4,296 M-ATVs from Oshkosh. The aggregate amount of the three awards is valued at $2.3 billion.
“Oshkosh is committed to meeting our customer’s urgent need for this highly mobile vehicle and helping our Armed Forces serving in Afghanistan to better operate on the country’s challenging terrain,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer. “We have delivered more than 100 M-ATVs through August, meeting our planned delivery requirements, and we continue to increase vehicle output at our manufacturing facilities to remain on schedule and meet our customer’s requirements.”
Oshkosh expects to meet the government’s accelerated delivery schedule without impacting other programs, with production ramping up to 1,000 vehicles a month in December, and continuing at that level through the end of March 2010. The company is leveraging its
pre-contract M-ATV production and engineering efforts, robust manufacturing capabilities, a highly skilled workforce, and decades of experience in producing more than 67,000 military-class vehicles.
The Oshkosh® M-ATV’s superior mobility, which includes a 70 percent off-road profile capability, is achieved through the incorporation of the Oshkosh TAK-4® independent suspension system. The system is featured on more than 10,000 Medium Tactical Vehicle Replacements (MTVR) used by the U.S. Marine Corps and Navy Seabees, and is being retrofitted on more than 2,000 legacy MRAPs for improved mobility in Afghanistan. The TAK-4 system, which has undergone more than 400,000 miles of government testing, also is used 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 Armored Cab MTVRs 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®, BAI™, 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.
# # #
Forward-Looking Statements
This press release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the consequences of financial leverage associated with the JLG acquisition, including the level of the Company’s borrowing costs, the increased interest rates the Company would face if it experienced a deterioration or downgrade in credit agency ratings and the Company’s ability to maintain compliance with its financial covenants under its credit agreement; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during a global recession and credit crisis; the duration of the global recession, which could lead to additional impairment charges related to many of the Company’s intangible assets; risks related to the required increase in the rate of production for the M-ATV and FMTV contracts, and the amount, if any, of additional orders for M-ATVs and/or FMTVs that the Company may receive; the outcome of the formal protests of the FMTV award to the Company: the expected level and timing of U.S. Department of Defense procurement of products and services and funding thereof; risks related to reductions in government expenditures and the uncertainty of government contracts; risks related to production delays as a result of the economy’s impact on the Company’s suppliers; the potential for commodity costs to rise sharply in a future economic recovery; risks associated with international operations and sales, including foreign currency fluctuations; risks related to the collectibility of receivables during a recession, particularly for those businesses with exposure to construction markets; and the potential for increased costs relating to compliance with changes in laws and regulations. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company assumes no obligation, and disclaims any duty, to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Photo courtesy of Oshkosh Corporation.
C-17 Engine Support Contract Worth About $1.4 Billion
Filed under: Boeing, Business Line, Companies, Congress, Contract Additions, Contract Awards, Department of Defense, Events, Military Aviation, Pratt & Whitney, Services, U.S. Air Force, logistics, production program
Last week we wrote about the award to Boeing of the C-17 maintenance support contract. Now the Air Force is getting ready to award that company and Pratt & Whitney a contract to support the engines of the transport fleet. If all options on the contract are exercised it could be a three year one worth $1.4 billion.
Because C-17 production has been ended by the Obama Administration these kind of support contracts are the only work available for the aircraft. Both Boeing and P&W are looking at issues due to the decision to cancel the F-22 as well. P&W made the engines for that aircraft.
Most programs cost is the long term support and this is certainly a viable business model for many companies. There is no requirement that the be done by the Original Equipment Manufacturer (OEM) although in this case the OEM is getting the work. In the past especially as the equipment gets older other companies are able to get the business.
Competition For Boeing On Missile Defense Support Contract
Filed under: Boeing, Business Line, Companies, Contract Additions, Department of Defense, Events, Federal Budget Process, Lockheed Martin, MDA, Northrop Grumman Corp., Services, development program, missile defense, production program, space
Boeing has been the lead contractor on the development and deployment of the U.S. Ground Based Missile Defense (GMD) system. This system utilizes radars around the world and interceptors based in Alaska to provide long range, large coverage missile defense. This system was the core defense of the United States as envisioned by the Missile Defense Agency (MDA) and the Clinton and Bush administrations.
President Obama and his Secretary of Defense Robert Gates ended the future production and upgrade of the system but several interceptors have been deployed and a capability has been established. The new Administration intends to focus on the Navy’s long range systems and new technologies.
This does not mean that they are abandoning the deployed system. There may also be construction of further radars if the politics with Russia are worked out. Boeing was awarded a support contract worth about $250 million last year to maintain the system. This makes sense as they are the prime contractor on the system. Now MDA has announced that the next support contract will be openly competed. Lockheed and Nothrop Grumman have already announced that they will bid on the contract.
The idea that is competition will make the cost of the contract cheaper. Once a system is deployed there is technically no reason why any company with the capability cannot support it. The government owns the data rights and can transfer them to whomever they need to. It will have to be seen how competitive the other companies are.
Follow On MRAP-ATV Contract Awarded To Oshkosh
Filed under: BAE Systems, Business Line, Companies, Contract Additions, Contract Awards, Countries, Department of Defense, Events, Force Protection, Michigan, Mississippi, Navistar, Oshkosh Truck Corp, Services, South Carolina, States, United States, production program
At the end of June Oshkosh won the initial MRAP-ATV contract from the U.S. Department of Defense. This one billion dollar contract was for over two thousand of the lighter and more maneuverable Mine Resistant Ambush Protected (MRAP) vehicles for use in Afghanistan. The DoD conducted a contest between a variety of companies that included a “drive off” to demonstrate capability. While it was thought that more then one company would win contracts only Oshkosh received an order.
Now it was announced today that Oshkosh won a follow on order for another seventeen hundred vehicles for another billion dollars. The company already had to invest in expanding its workforce and capability to meet the first one. Part of any contract award by the Defense Department is based on the winner’s demonstration that they are able to meet the production and quantity requirements so Oshkosh should be able to build these. The follow on award though will deal a further blow to Navistar, BAE Systems and Force Protection efforts in the MRAP business.
The U.S. had rapidly purchased a variety of different MRAP vehicles for about four years to provide protection for troops as they moved around Iraq. There is an on-going struggle how to fit these vehicles into their tactical formations now that those operations are winding down. The MRAP are big, road optimized vehicles and are not designed for use in rough terrain or combat. This is part of the reason that the Future Combat System (FCS) vehicle portion was canceled. There may soon be an end to the purchase of any large numbers of MRAP as future more tactical combat vehicles are purchased.
Lockheed Accelerates India’s C-130 Aircraft
Filed under: Boeing, Business Line, Companies, Contract Additions, Contract Awards, Countries, Events, India, Lockheed Martin, Military Aviation, logistics, production program
India had purchased six C-130J transports from Lockheed Martin last year. This is part of that nation’s program to improve their armed forces through buying new technology from U.S. , European and Israeli suppliers. Along with the buy of the U.S. transports the Indian Government purchased P-8 Anti-Submarine Warfare (ASW) and patrol aircraft from Boeing. There is also a major fighter contract contest underway that has seen Lockheed bid their F-16 aircraft for as well.
Lockheed announced that they are accelerating the production and delivery of the six aircraft. It is hoped that the first one will be delivered in about two years. The hope is that by showing good performance it might drive India to execute the second buy option in the contract. This is for a further six aircraft. Lockheed is hoping that the new agreement between the two countries allowing U.S. control on technology sold to India will facilitate further deals.
9 billion euro contract for 112 Eurofighter Typhoons signed – Press Release
Filed under: Business Line, Companies, Contract Additions, Contract Awards, Countries, England, Events, Germany, Italy, Military Aviation, Spain, production program
9 billion euro contract for 112 Eurofighter Typhoons signed
NETMA (NATO Eurofighter and Tornado Management Agency), Eurofighter Jagdflugzeug GmbH and EUROJET Turbo GmbH signed today the production contract for a further 112 aircraft, including 241 engines, for the four partner Nations: Germany, Italy, Spain and the United Kingdom.
The Tranche 3.9 billion contract confirms Eurofighter Typhoon as the best selling defence aircraft on the market with 559 units under production contract, including 15 for Austria and 72 for Saudi Arabia.
Eurofighter Jagdflugzeug GmbH CEO Enzo Casolini commented: “This is a major achievement in the Eurofighter programme and serves to reaffirm the importance and the independence of the defence sector of the European industry. The agreement, achieved in conjunction with NETMA and the four Nations involved in the programme, will provide the Air Forces with the best asset available to address their requirements for both air-to-air and air-to-ground roles”.
EUROJET Managing Director Hartmut J. Tenter commented: “This is an outstanding success for the EUROJET programme and a clear signal to the international community endorsing the quality of the product. The EJ200 stands for leading-edge technology, including advanced integrated Health Monitoring to deliver class-leading reliability, maintainability and Through Life Cost—the benchmark of excellence”.
NETMA’s General Manager, Lt.Gen. Antonino Altorio remarked that “the capabilities of Tranche 3 aircraft consolidate the already excellent performances of Tranche 1 and 2 aircraft and will enable the Air Forces to carry out primary air defence in NATO missions as well as maintaining air superiority in theatres of operations and, if necessary, providing support in the air-to-ground role. This contract sets the baseline for consequent contracts for logistic support which is fundamental to keeping fleets available while reducing, significantly, the cost of in-service support”.
Today the Eurofighter programme not only represents the largest European industrial programme, supporting 100,000 jobs in 400 companies across Europe, but it is also the most advanced example of technology within the European industry base. It sets the standard in terms of best value for a new generation defence aircraft programme.
With the production of Eurofighter Typhoon, now being confirmed until well into the next decade, the future of the programme is assured and will maintain and develop the current technological capability in Europe, enhancing future export opportunities and giving the four partner Nations a significant return on their investments. Having already secured two export contracts with Austria in 2003 and the Kingdom of Saudi Arabia in 2007, Eurofighter Typhoon will continue to follow up all export opportunities.
NETMA
Eurofighter and Eurojet Turbo consortia and their partner Companies are actively pursuing campaigns in Switzerland, India, Japan, Romania, Greece, Turkey and exploring possible opportunities in South Korea, Bulgaria, Croatia and other Nations.
Background information:
Eurofighter Typhoon is the world’s most advanced new generation real multi-role/swing-role combat aircraft available on the market and has been ordered by six nations (Germany, Italy, Spain, United Kingdom, Austria and the Kingdom of Saudi Arabia). With 559 aircraft under
production contract, it is Europe’s largest military collaborative programme and delivers leadingedge technology, strengthening Europe’s aerospace industry in the global competitive market.
More than 100,000 jobs in 400 companies are secured by the programme. Eurofighter Jagdflugzeug GmbH manages the programme on behalf of the Eurofighter Partner Companies: Alenia Finmeccanica, BAE Systems, EADS CASA and EADS Deutschland, Europe’s foremost aerospace companies with a total turnover of approx. 88 billion Euros (2008).
The EUROJET consortium is responsible for the management of development, support and export of the new generation EJ200 engine system, installed in the Eurofighter Typhoon aircraft. EUROJET’s shareholders comprise Avio (Italy), ITP (Spain), MTU Aero Engines (Germany) and Rolls-Royce (UK). The EJ200 engine, with its unprecedented performance record combined with multi-role capability and highest availability at low life-cycle costs, is perfectly set to meet the air forces’ demands of today and the future.
NETMA was formed on 1 January 1996 by the merger of two previously separate NATO agencies which had been established to manage Tornado and Eurofighter (EF2000) programmes.
The Agency is responsible to the partner Nations (Germany, Italy, Spain and the United Kingdom) for all the aspects of the programme covering development, procurement and inservice support of Eurofighter and Tornado aircraft weapon systems. NETMA provides partner Nations with an efficient, effective and coherent management service for these two major international programmes.
High Resolution images of the Eurofighter Typhoon and of the EJ200 can be downloaded from the web sites: www.eurofighter.com/medialibrary and www.eurojet.eu
Photo courtesy of Eurofighter.com.
EADS Sells More A330 Tankers To Saudi Arabia
Filed under: Australia, Boeing, Business Line, Companies, Congress, Contract Additions, Countries, Department of Defense, EADS, England, Events, Japan, Military Aviation, Northrop Grumman Corp., Services, U.S. Air Force, UAE, United States, commercial aviation, development program, logistics, production program
EADS announced today that Saudi Arabia had doubled their order for aerial tankers by buying three more A330 MRT aircraft. This means that the Kingdom will now have six of the advanced tankers. They along with the U.K., Australia and the U.A.E. have ordered the aircraft. As part of the buy of the new aircraft Saudi Arabia has ordered logistic and parts support for the tankers although no contract value was announced.
The big contract for military refueling aircraft is the new tanker for the United States Air Force (USAF). EADS and Northorp Grumman had won the contract for the KC-X last year only to see it overturned on a Boeing protest. Now the new Obama Administration and the USAF will try again with a completely new RFP. That contract would be for over one hundred aircraft and would dwarf previous orders. There is still discussion of possibly splitting the contract between the two suppliers with a goal of maximizing the number of aircraft delivered in a short time. The USAF and Defense Department are against that as the two aircraft would require their own substantial support tail of parts, maintenance and training which would be quite expensive.
The A330 is a bigger aircraft then the 767 proposed by Boeing last time but requires larger airfields and more gas to fly a comparable mission. The bigger aircraft can carry more fuel for other aircraft so there has to be a balance struck there. It is definitely conceivable that the loser of the next contract will protest anyway so there may be further delays to the acquisition of the greatly needed capability.
A400M Contract To Be Restructured
Filed under: Business Line, Companies, Contract Additions, Countries, EADS, England, Events, Military Aviation, Restructuring, development program, logistics, production program
The A400M transport program is the premier new aerospace defense effort in Europe. Seven separate countries had teamed together to develop and buy the aircraft from EADS. The program has had major delays due to engine and software issues and the customers have been delaying action for most of this year. Under the original contract EADS would have had to pay back money due to schedule targets not being met. This deadline has been pushed back until 30 July.
Now the customers have announced that a new contract will be negotiated by December of this year. Under the current schedule the first flight of the aircraft should occur by the end of the year with production deliveries in 2012. Britain had been pushing back on the contract due to their budget problems and the need for support for operations in Afghanistan.
The new contract is not technically a done deal as there could still be issues with some of the countries involved. The terms are obviously not clear now but will clearly revolve around the schedule and payments. EADS will probably see some relief from the schedule penalties. Military development programs are not new to such schedule issues and often if the program is important enough these kind of concessions will be made by the customers. The program is looking at a minimum three year delay and this will be reflected in the new contract.
The big thing this decision does delay further the penalty deadline that EADS has been facing all year and has made it hesitant to use their cash reserves for any other action.
Defense Department High-Performance Computing Centers Extend Their Contract with Altair for a Third Year — Press Release
Filed under: Altair Engineering, Business Line, Companies, Contract Additions, Department of Defense, Events, IT, Press Releases, Services, development program
Defense Department High-Performance Computing Centers Extend Their Contract with Altair for a Third Year
Altair’s PBS Professional software plays key role in military’s modernization program, providing a single job-management system for R&D and testing centers
Troy, Mich., USA, June 15, 2009—Altair Engineering, a global provider of technology and services empowering client innovation and decision-making, today announced that the U.S. Department of Defense has exercised its option to continue using Altair’s PBS Professional software as the standard workload management solution for its High-Performance Computing Modernization Program (HPCMP).
The Altair software currently schedules runs on the department’s centers for scientific research and development and for testing and evaluation. These high-performance computing centers include facilities at the Aberdeen (Md.) Proving Ground; Wright-Patterson Air Force Base near Dayton, Ohio; and the Navy DoD Supercomputing Resource Center on the Mississippi Gulf Coast, as well as sites in Vicksburg , Miss.; Fairbanks, and Alaska. In all, the systems at these facilities furnish a total 1.3 petaFLOPS of computational power (1.3 thousand trillion floating point operations per second).
In 2006, Altair earned a two-year contract to provide PBS Professional for these centers, with a series of eight one-year renewal options. The HPCMP now has exercised the Year Three option, based on the performance of the software and the flexibility of Altair Engineering in adapting to the needs of the organization’s constantly changing environment.
“We focus on making the most secure, reliable, and scalable software in the industry,” said Dr. Bill Nitzberg, PBS GridWorks Chief Technical Officer at Altair, “and we’re very pleased that the Department of Defense continues to trust PBS Professional to manage some of the most sophisticated machines in the world.”
Initiated in 1992, the HPCMP’s mission is to deliver world-class commercial, high-end, high-performance computational capability to the Defense Department’s 4,000+ person science, technology, testing and evaluation communities.
A single job-management system
“The foundation of our contract with Altair was the desire to have a single job-management system for our entire user community,” said DoD HPCMP Centers Manager Brad Comes. “Our community uses about 20 different HPC systems. Some users employ eight systems and others just two or three. We wanted to have a common management system independent of the system they ran on, so our contract required software to run on all our systems as they scale, mature and change technologically.”
HPCMP buys three or four large high-performance computing systems every year to upgrade its capabilities, and the latest version of PBS Professional is installed on the new computer systems as they are deployed. HPCMP Centers Senior Analyst Bill Fabian said the centers have received a good endorsement of PBS Professional from system vendors, who appreciate Altair’s adapting its product line to integrate with their hardware.
“Altair has been able to adapt as the environment changes,” noted Fabian. “Altair’s capability to put changes in place has enabled a more rapid transition toward a single baseline. We’re happy with Altair’s flexibility, adaptability and responsiveness through changes in functionality of its software and integration with our capabilities.”
The role of PBS Professional is to optimize the amount of development data and testing that can be carried out on available resources within a given timeframe. “Our users have to make many runs of these programs with different criteria and assumptions,” Fabian explained, “and that’s a lot of computing. PBS commands are embedded within user-defined scripts, improving our overall productivity. Personnel no longer have to maintain scripts supporting multiple computing systems; they just need to support one layer for the queuing system. This capability has reduced our software sustainment costs because we only need to sustain a single job scheduling and queuing system.”
Supporting next-generation technologies
The military’s research and development scientists use high-performance computing, supported by PBS Professional, for a variety of advanced projects, such as developing materials for the next generation of aircraft, designing propulsion systems, developing more effective nozzles for diesel fuel-injection engines, and producing armor for vehicles in the field. They also take on projects with a very large scope, such as creating next-generation capabilities for predicting climate, weather and ocean patterns.
Testing and evaluation experts use the HPC systems to run virtual tests before conducting actual testing of missiles and aircraft. “Instead of conducting ten tests, the testing community can do computational work up front to reduce the scenarios required for actual testing to perhaps two,” said Comes, just as automotive designers use HPC simulations to reduce the number of actual crash tests they need to perform with vehicles.
“Our full intent,” Comes affirmed, “is to provide stability for our user community for 10 years with this common management system.”
About PBS GridWorks
PBS GridWorks® is a suite of on-demand grid computing technologies that allows enterprises to maximize ROI on computing infrastructure assets. PBS GridWorks is the most widely implemented software environment for grid-, cloud-, cluster- and on-demand computing worldwide. The suite’s flagship product, PBS Professional®, provides a flexible, on-demand computing environment that allows enterprises to easily share diverse (heterogeneous) computing resources across geographic boundaries. Leveraging a revolutionary “pay-for-use” unit-based business model, PBS GridWorks delivers increased value and flexibility over conventional software licensing models. For more information, please visit www.pbsgridworks.com.
About Altair
Altair Engineering, Inc. empowers client innovation and decision-making through technology that optimizes the analysis, management and visualization of business and engineering information. Privately held with more than 1,300 employees, Altair has offices throughout North America, South America, Europe and Asia/Pacific. With a 20-year-plus track record for product design and development, engineering software, advanced computing technologies, and enterprise analytics, Altair consistently delivers a competitive advantage to customers in a broad range of industries. To learn more, please visit www.altair.com.
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England Vacillating On Next Batch Of Eurofighters
Filed under: BAE Systems, Business Line, Companies, Contract Additions, Contract Awards, Countries, England, Events, Germany, Military Aviation, Restructuring, Rolls-Royce, development program, production program
Back in May we had written that England would go ahead with the full buy of the next order of Eurofighter Typhoon modern fighter aircraft. This was based on the fact that the costs associated with canceling the contract would be prohibitive. There was also some hope that part of the aircraft could be used to fulfill foriegn military sales rather then seeing service with the Royal Air Force.
Now it is reported that the deal may fall through after all. England like America is faced with economic problems that have led to massive borrowing and an attempt to spend their way out off the recession. This means that funds are limited and the cost of the new aircraft fairly prohibitive. Not only will there be the cost of breaking the contract but several thousand jobs related to building the aircraft may be lost. The government is trying to renegotiate the price or the fees in order to save some money but time is running out. Germany has restated their support for the program and an intent to go ahead and buy the latest batch.
When the original contract was signed England did not imagine that they would not have enough money. It was they who insisted on the strict and high fees if the contract was not followed through on in an attempt to keep the other countries involved from leaving. This had happened several times in the past when NATO and the U.S. joined on various development and procurement programs.
England Looking At Harder Line On Typhoon Buy
Filed under: Business Line, Companies, Contract Additions, Countries, EADS, England, Events, Germany, Military Aviation, Restructuring, Saudi Arabia, Spain, production program
Update — It was reported on Monday that the expected penalties and cancellation fees related to the UK’s buy in this round for the advanced aircraft will be over two billion pounds ($3 billion or so). This amount of money may make it more feasible to purchase the aircraft. While penalties are capped at the two billion figure there would still be termination fees. The economic effect of ending the program would also be substantial as there are several thousand jobs in the UK that rely on the program. The decision on this effort will not be easy for the Brown Government already facing a dire financial situation.
As we wrote about previously England’s budget struggles are causing it to rethink the upcoming contract buy of Typhoon fighters. If England does not participate fully in the third option then either the other countries will have to renegotiate the prices most likely to a higher number. England does have the option of ending their participation in the multi-national contract but would have to pay substantial termination fees that might end up higher then the cost of buying the aircraft.
The interesting thing is that it was England worried that some of the other participants may have left the contract that worked to have the high fees put in the contract. England is trying a third option where most of there scheduled buy will go to Saudi Arabia rather then to them allowing some savings. The Brown government like Obama in the U.S. is facing trying to pay for a large economic stimulus package as well as increased social spending. This has put pressure on a military budget already suffering from the combined campaigns in Iraq and Afghanistan. Like Obama is doing one way to save money is to end large procurement programs to save defense spending. They can either be stopped in development or less units can be bought, like the F-22. Unfortunately the less you buy the more they cost so total savings may be limited.
If England does renege on this contract there will be significant future issues with their partners and for the Eurofighter consortium.
UK Budget Woes Affecting Eurofighter
Filed under: BAE Systems, Business Line, Companies, Contract Additions, Contract Awards, Countries, EADS, England, Events, Germany, Italy, Military Aviation, Restructuring, Spain, development program, production program
The Eurofighter program is coming up for the next production buy. England, Germany, Italy and Spain are all planning to buy new aircraft with this batch. The original plan was to buy just over one hundred aircraft for about $180 billion. England was expected to buy sixteen. Now England’s budget problems is leading the Brown government to consider not participating in this purchase.
This decision is being fought by the other nations as a reduction in the quantity will increase the price for all of the them. England wants to negotiate a cheaper price for the aircraft. It doesn’t help that a great deal of high quality manufacturing jobs are based on this program across Europe. Few countries can face more unemployment in the current world economic situation.
The Eurofighter TYphoon is facing much of the same opposition that the F-22 is with some saying it is not the type of aircraft needed for today’s war on terror. The fact that it is the most expensive aircraft in Europe also is not helping. The European aviation industry is struggling right now with the A400M program and a possible cancellation of that. For England to back out of its Eurofighter commitment would only add to the problems.
Navy Awards LCS Contract
Filed under: Business Line, Contract Additions, Contract Awards, Events, Marinette Marine, Services, States, U.S. Navy, Wisconsin, production program
The U.S. Navy awarded Marinette Marine a contract modification in order to “preserve production capability” for the Littoral Combat Ship (LCS) program. The Business Journal reports that Marinette Marine was part of a team with Lockheed Martin that built one of the first two LCS ships for the Navy. The Navy plans to award two more ships and it was believed that only one of the two teams that had built a ship each would qualify for this next order. This contract action prevented Marinette Marine from cutting back on its work force, hence the preserving part. There is still no guarantee that the company will get further LCS work but it keeps the option open.
U.S. Army Continues Hellfire Launcher Production
Filed under: Business Line, Companies, Contract Additions, Lockheed Martin, Military Aviation, Services, U.S. Army, production program
The Hellfire missile is launched from U.S. attack and scout helicopters. It will eventually be replaced by the Joint Air to Ground Missile (JAGM). The original replacement Joint Common Missile (JCM) was canceled in 2007. Ocala.com reports that the U.S. Army awarded Lockheed Martin an option to build more Hellfire launchers as part of a 2007 contract. This extension is worth $31 million. Lockheed Martin builds launchers and parts for the launcher assemblies which are then put together by another company.
U.S. Buys More HUMVEES
Filed under: AM General, Business Line, Contract Additions, Department of Defense, Events, Michigan, Services, States, production program
The U.S. Department of Defense executed an option to buy 1,700 more HUMVEE vehicles as part of an existing contract with AM General. WNDU.com reports the award is worth over $250 million. The U.S. military will soon be moving to replace the HUMVEE with the JLTV vehicle, but there is still requirements for thousands of these vehicles. Iraq and Afghanistan have been especially harsh on the modern jeep and versions with more and better weapons and armor have been developed.
Canada and Sikorsky Have Issues with New Helicopters
Filed under: Business Line, Canada, Contract Additions, Contract Awards, Military Aviation, Restructuring, Sikorsky, production program
In 2004 the Canadian government ordered 40 new helicopters from Sikorsky to replace aging Sea King search and rescue aircraft. The original contract was for about $5 billion Canadian and set an initial delivery date of 2008. Now The Globe and Mail reports that due to requirement changes requested by the government $117 million had to be paid to Sikorsky. The contract has also slipped deliveries to 2012. There are also indications that due to further changes planned by the government more money will have to be paid. At the same time Canada has refused to collect a penalty clause in the contract to punish the company for delayed deliveries.
RAAF Buys FLIR Systems for Patrol Aircraft
Filed under: Australia, Business Line, Contract Additions, FLIR, production program
The Royal Australian Air Force (RAAF) exercised an option with FLIR Systems to procure more FLIRs for their P-3 maritime patrol aircraft. CNNMoney.com has the press release. The contract option is the first option exercised under an original contract signed last year. The original contract had a value of over $13 million U.S. and no value for the option was released. The contract will upgrade existing FLIR Systems products to HD standard.
Navys Orders Long Lead Items for Next LPD
Filed under: Business Line, Contract Additions, Contract Awards, Mississippi, Northrop Grumman Corp., U.S. Navy, production program
The U.S. Navy awarded Northrop Grumman Shipbuilding’s Pascagoula yard a contract to procure the long lead items for LPD-26. The Mississippi Press reports that the $10 million contract will begin the process of building the ship. The actual time line to award the full production contract has not yet been set. In the past the production contract has cost upwards of $1 billion. The Pascagoula yard has built or is building LPD 22 and 24. LPD 17-20 of the San Antonio class have been completed.
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