U.S.M.C. Gives Support Contract To Force Protection

Force Protection had a heyday a few years ago as a manufacturer of Mine Resistant Ambush Protected (MRAP) vehicles. In 2005 – 2007 the U.S. military could not buy the vehicles fast enough as Congress showered them with money for them. The IED and mine threat at that time was consistently inflicting the most casualties on the U.S. and its allies. It still remains a potent threat in Afghanistan but not as much in Iraq as the U.S. slowly pulls its troops out.

Force Protection was unable to keep its sales up as more companies entered the market. There have been some recent sales to overseas customers but the main U.S. defense buys have dried up. The company was able to announce today that it had signed a contract with the U.S.M.C. for field service support to its existing vehicles. This contract is worth over $26 million.

An OEM often has the ability to sell maintenance, support and modification services to the military once production of an article is completed. Eventually the defense department may turn to other providers so that market too ends. It behooves a company to keep improving their products or make new ones that attract the market.

Kongsberg To Build More CROWS

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.

F-35 Program Has Issues DCMA Says

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.

U.S.M.C. Buys New Engines From BRP For Light Boats

The United States Marine Corps awarded BRP a contract to purchase new engines for its fleet of Zodiac Combat Rubber Raiding Craft (CRRC). The contract for at least fift-five Multi Fuel Engines (MFE) is worth about $10 million. The engines are considered a commercial product and are the best MFE available that meet other military specifications.

The Marines will use these engines to power the CRRC to support insertion, patrol and reconnaissance operations along coastlines and rivers. Obviously with these types of missions reliability and performance are important. The engines may run on gasoline, kerosene and jet fuel. They come in two versions: One with an impeller and a conventional propeller model. The Marines are focusing on the impeller model. Because this is a commercially available product they can be delivered in less then six months to the customer.

Marine Corps Buys Swords

In another edition of our continuing series the U.S. Defense Department buys a lot of different things the United States Marine Corps placed an order with Atlanta Cutlery for Non-Commissioned Officer ceremonial swords. The contract is an extension of one previously awarded with no value given. The company has been making swords for the U.S. military for almost twenty years but has supplied other world armed forces with knives for much longer then that.

The company markets swords for all of the services available for sale by individual personnel. The company also makes militaria and collectibles.

Oshkosh Exceeds M-ATV Delivery Schedule for Third Consecutive Month — Press Release

Oshkosh Exceeds M-ATV Delivery Schedule for Third Consecutive Month

OSHKOSH, Wis. — Oct. 1 2009 — Oshkosh Corporation (NYSE:OSK) announced today that for the third consecutive month, it has exceeded its contract delivery requirements for MRAP All Terrain Vehicles (M-ATV). The September M-ATV delivery requirement for 100 vehicles was met on September 22, more than one week earlier than required.

Oshkosh Corporation is responding to an urgent call from the U.S. Armed Services for the accelerated delivery of M-ATVs for operations in Afghanistan. Since receiving the first order on June 30, 2009, Oshkosh has delivered ahead of schedule each month, enabling the MRAP Joint Program Office to fly M-ATVs to Afghanistan earlier than initial estimates. Oshkosh’s manufacturing facilities have available production capacity for all current and potential military vehicle programs, including the U.S. Army’s Family of Medium Tactical Vehicles (FMTV), as well as any production surges.

“The M-ATV program was fast-moving from its inception, and we are answering the Warfighter’s need for this advanced vehicle by providing the government with a rapid delivery schedule,” said Charlie Szews, president and chief operating officer of Oshkosh Corporation. “Oshkosh’s robust manufacturing capabilities, proven experience and highly skilled workforce have helped set the company apart as a leading and reliable supplier of the M-ATV, as well as other medium- and heavy-payload tactical wheeled vehicles for the U.S. military.”

Oshkosh uses an advanced integrated assembly line and has simultaneously produced as many as 10 vehicle models with 29 variations. Design innovations, assembly process improvements and lean manufacturing fuel continuous quality improvement at the company’s facilities.

To date, the company has received orders valued at $2.3 billion for 4,296 M-ATVs, including initial spare parts and support services. The U.S. military flew the first M-ATVs to Afghanistan at the end of September.

The Oshkosh® M-ATV uses the advanced Oshkosh TAK-4® independent suspension system for superior mobility, including a 70 percent off-road profile capability and 16 inches of wheel travel. The TAK-4 system, which has undergone more than 400,000 miles of government testing, 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 system is also 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.

Oshkosh Defense is the leading manufacturer of both medium and heavy tactical wheeled vehicles in the U.S. defense industry. More than 67,000 military-class vehicles have been produced in the company’s manufacturing facilities.

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.

Photo Courtesy of Oshkosh Corporation

Contractors Good For Something — Being A Force Mulitplier In Afghanistan

For the last eight years one of the biggest complaints from the American left was that George Bush was in the sway of big government contractors. They did too much of the housekeeping services in Iraq and Afghanistan. Companies like KBR lined their pockets at the expense of the troops and taxpayers. They were doing jobs that green suiters or civil servants should be doing.

Unfortunately due to the small size of the military they had to use contractors for those jobs. This has been a trend going back thirty years. Use contractors to wash clothes, cook food and clean latrines. Then there would be more soldiers freed up to do the fighting. Despite a consistent philosophy on the use of support contractors Bush received holy hell about it. True the scale in Iraq was much larger then it ever had been before and the contracts were in some case let quickly and didn’t have enough oversight but people were trying to get things done.

Now the word is that Obama wants to increase the number of foot soldiers in Afghanistan but without increasing the number of U.S. troops deployed to that country. One way to do this is to reduce the number of soldiers assigned to logistic support units, command headquarters, maintenance and so one and do a one-for-one swap with “trigger pullers”. How do you do this and still provide the enormous tail that U.S. forces need? Use contractors.

It might be possible to assign U.S. civil servants to do this but there have been many issues in the past with getting them to serve in Iraq and Afghanistan. It is too dangerous or not career enhancing. Certainly there is a number of people assigned or who volunteer for these positions but to get the kind of capability that is needed it will have to be contractors. Contractors like KBR or other such companies experienced in logistics and maintenance.

This will not be an easy or quick switch. The ground troops will have to be designated from either those in Iraq or in the U.S. recovering from a recent deployment. Then they will have to be trained and equipped up. A plan will be figured out how to deploy a 1000 support troops and replace them with a battalion of infantry. The support infrastructure will probably have to switch first. Contractors taking over for the rear echelon folks.

Another challenge will be writing and awarding the contracts for this. Unless they plan on expanding existing contracts there will be a several month period of writing the RFP, putting it out and evaluating the proposals. Awards may be protested which could add to the delays. Once awarded the contractors will have to hire their people and get them into place. Expect the almost constant sniping from Congress and the Media about this. See the LOGCAP contract from Iraq for example.

The Obama administration really cannot do anything else. They have reached the fish-or-cut-bait point. Either abandon Afghanistan or pour resources in. At the same time he does not want to “surge” troops there as that will make him and many Democrats look like idiots for opposing the same in Iraq. So he does the next best thing: surge contractors to maximize his troop availability. Good luck to them and the soldiers.

Cross posted at Inane Taskers

F-35 Completes Aeriel Refueling Test

The F-35 Joint Strike Fighter (JSF) Short Take Off/Vertical Landing (STOVL) version completed a refueling mission form a KC-130. This was a successful first using the hose and drogue method of refueling aircraft in air. The Lockheed Martin press release is available here.

The JSF continues to make strides in its development program and is moving forward as its rapid procurement has become the focus of the Obama Administration’s attempts to modernize America’s fighter fleet.

GE Bets On House To Keep F-35 Second Engine Alive

Following up on its decision to strip the F-22 funding from the 2010 budget as requested by the Obama Administration the Senate also de-funded the second source for the F-35 JSF engine. This program too had its funding removed in the President’s budget submission but the House and the Senate Committees had restored some money to continue the program.

GE and Rolls-Royce are making this engine, the F136 with Pratt & Whitney responsible for the main F135 engine. The idea of having a second engine was due to the large amount of F-35 aircraft required and the three different versions there might be a need for such capability. GE is claiming that the competition that their engine provides will help control costs and schedule. The company feels that the funding will remain in the final bill as the House will support it in Conference. There is still a chance that the conference bill will also retain some money for the F-22 if the House is hard over on it.

It is interesting that Secretary of Defense Gates‘ wants to end this competitive program to save money when one of the new changes to defense acquisition that he has pushed this year is increased competition in the early stages of a program. Historically when there have been multiple sources trying to win a program there have been cost savings to the Government. In this case the feeling must be that the program is too mature to justify the two sources for the engines.

With the support of the Senate for Obama it may be a contentious conference, or the House may end up ending the programs. It will be an interesting August from the defense budget point of view.

Marines And Oshkosh Move Out On New Truck

The U.S. Marine Corps initiated a new program for Oshkosh Defense to build them a heavy, multi-purpose truck. The Logistics Vehicle System Replacement (LVSR) program is for a new tactical vehicle to perform a variety of roles.

The U.S. military had to invest heavily in Mine Resistant Ambush Protected (MRAP) and up armor their older tactical vehicles, like HUMVEES and trucks. This program will take advantage of that experience to develop and produce a new vehicle to carry out a variety of missions for the U.S.M.C. As the MRAP has had issues working in tactical situations this is another program to fix some of these issues. The contract is worth just over $700 million if all options are exercised. Right now the contract is for about 600 vehicles.

Like the MRAP-ATV program where there will be a lighter, more mobile vehicle developed to work the rougher terrain in Afghanistan the concept of this program is sensible. Oshkosh will stand to do well with this product if it works out and other services and countries buy it.

MRAP-ATV Contract Continues On Track

The MRAP-ATV is a program to develop a lighter, more maneuverable Mine Resistant Ambush Protected vehicle for use in Afghanistan. The Army has been working on awarding a production contract by the end of this quarter. Reports indicated that that will happen and one or more companies who are participating in the current testing will receive an order.

The Army and other Services have invested a great deal of money in the last five years into these systems to counter the IED and mine threat in Iraq and Afghanistan. The vehicles due to their size and weight primarily are road bound and provide point-to-point transport. The rougher terrain in Afghanistan and lack of roads has led to the MRAP-ATV requirement. The program has moved fast as basically all of the vehicles proposed are existing systems.

The winner(s) will see a great deal of work quickly as the military hopes to ramp up production and quantities very quickly. The use of MRAP and their force mix are all undergoing study as the U.S. tries to fit them into its regular tactical organizations and doctrine.

Lockheed Plans Further Job Cuts Due To VH-71 Ending

Lockheed Martin had already cut over one hundred jobs at their Upstate New York facility in Owego. This was mainly due to the decision by Obama and Secretary of Defense Gates to end the VH-71 New Presidential Transport helicopter program. Even though the aircraft was made in Italy Lockheed did all the modifications and integration in Owego.

Despite a great deal of argument and pressure to keep the program going in some form or another the contract was recently terminated. Lockheed is now saying that another seven hundred and fifty people may lose their jobs. Right now they are looking for people to voluntarily leave or retire with a promise of severance. The plan is to begin the layoffs in July based on how many people agree to leave voluntarily.

One of the arguments against ending this and other production programs is that they will just add to the joblessness during the current recession. Of course the defense budget is not really a jobs program and that is fairly poor reasoning to continue spending billions of dollars on a system that does not meet requirements. It is still possible that Congress will pass some form of spending that will keep pieces of the program alive in the 2010 defense budget but that will not be finished until the Fall.

Latest JSF Order Placed

The United States government acting for itself and its Allies awarded a contract to Lockheed Martin for the next procurement of the F-35 Joint Strike Fighter (JSF). The $2.1 billion contract option restructured an existing advanced procurement contract into a Cost Plus Incentive Fee (CPIF). It was the third option to an existing Low Rate Initial Production (LRIP) contract.

As part of this option seventeen aircraft were ordered for delivery by the first quarter of Fiscal Year 2012. Seven of the JSF will be for the U.S. Air Force and seven for the U.S. Marine Corps. One was purchased for Norway and two for Britain as part of the several JSF international partners.

JSF Second Engine Fighting For Its Life

One of the programs cut by Secretary of Defense Gates’ in his proposed budget is the second source for the F-35 engine. This has been a controversial program since its inception. Now with the plan to end the program Rolls Royce and General Electric are arguing it is cheaper and more sensible to continue the program.

The Air Force and Navy have always been ambivalent about the program but Congress has kept it funded. The fact that Congress cuts aircraft production to find the funding has raised the hackles of some people. Now that the Defense Department has decided to end the program the contractors, and their allies in Congress, are arguing that most of the planned money has been spent and the program should at least complete development.

Of course if the engine did go into production and was used to power some of the JSF aircraft to be used by America and its allies the amount of revenue available to GE and Rolls Royce as well as Pratt & Whitney who make the primary engine would be quite substantial. The second source providers say that the bulk of the $3.5 billion allocated to the program has been spent so rather then terminating the program at some cost just complete it.

As with all of these programs recommended for termination it will be Congress who will have the last say in the budget. But since Gates moved quickly to halt the contracts for FCS and VH-71 it wouldn’t surprise me to see a stop work order on this one as well.

Earmark Proposed For Elbit To Upgrade CH-53D Aircraft

The U.S. Marines like the Army have been heavily stressing their helicopter fleet in Iraq and Afghanistan. That service has begun to upgrade their lift capability with the procurement of CH-53K and V-22 aircraft. At the same time they have refurbished their older CH-53D aircraft to maximize their use.

Elbit makes a display that has been fitted into many Army and Marine helicopters already called the ANVIS-HUD. The Marine Corps did not have the money available in their budget to add this to the CH-53D as part of their refurbishment. Now the local Congressional Representative, Kay Granger (R-TX), has proposed a $22 million earmark to do this.

This illustrates one of the issues with earmarks. Sometimes they can be used for good things that the services may not have available funds for. Not all earmarks are for blatant waste or fraud like those that make the headlines. There are also cases where the company or the Service have lobbied Congress to include these kind of marks.

Ideally the budget would be planned by the Services, OSD and the President and Congress would do little to change it. That is not possible as the Constitution gives the House the authority to start all funding bills. What is in the bill is what is given to the Executive Branch at the end. Earmarks are a part of this process. As this example shows though not all earmarks are bad and they can buy useful capability for the military that might not be able to fit in the regular budget.

CH-53 photo by Flickr user Obskurantist.

MRAP-ATV Moves Forward

In early March the Defense Department awarded a group of companies contracts to begin concept designs for the Mine Resistant Ambush Protected-All Terrain Vehicle (MRAP-ATV). Now it is being reported that the first production buy contracts may be awarded by May 1st. Crain’s Detroit Business says that the contracts had been delayed due to the short lived protest by Navistar. The Army plans to buy a small quantity of vehicles to do tests with and then order larger buys. The Defense Department had discussed in the past buying several of the proposed vehicles rather then focusing on just one.

This would mirror the experience had with the large MRAP vehicles bought for use in Iraq and Afghanistan to defeat the IED threat. Then due to the large quantities needed quickly several companies were able to win contracts. Part of this was that the U.S. military moved slowly first equipping engineering units and then the bulk of their infantry and other troops. This meant that the U.S.M.C and the Army bought different types for the missions. The MRAP-ATV will be used in Afghanistan where a lighter, more mobile off road vehicle is needed due to the rough terrain. This has been a more deliberate process then that used for the MRAP. Multiple contracts would allow faster equipping of units, but will also require a larger, more diverse logistical and training tail.

U.S.M.C. Buys Tactical Trailers

Recently the U.S. government purchased tactical cargo trailers from Mercedes Benz and Oshkosh. The U.S.M.C. just announced that they bought 724 trailers from the Native American firm Choctaw Manufacturing. The McAlester News-Capital reports that this contract is worth over $60 million. Native American owned companies receive priority when it comes to winning contracts. Some tribal organizations partner with existing contractors to develop capability and get work. Others, like the Choctaws here, invest in a facility and then use that to get contracts.

Sikorsky and Workers Avoid Strike

Sikorsky and its unionized workers were able to agree on a contract today avoiding another potentially costly strike. The Journal Inquirer reports that the Teamsters Union and Sikorsky agreed to a contract on Sunday. Three years ago a long strike severely impacted the ability of the company to build aircraft at the desired rate of production. Since then Sikorsky has signed a big UH-60 Black Hawk contract as well as begun the CH-53K program and hopes to possibly win the CSAR-X re-competition. With all the work underway the new contract is substantially better in terms of pay then the last one. The strike was about employee contributions to health insurance although the union ended up settling on the company’s proposal.

Even COTS Programs Can Be Expensive and Late

The Washington Post writes about the USMC Growler program and the problems it faced. The Growler was supposed to be a light, four wheeled drive vehicle that could fit inside a V-22 Osprey and be moved to support Marines. The Osprey could not carry a HUMVEE or LAV. The system chosen to be built by General Dynamics and Growler was an existing commercial four wheeled drive dune buggy that would cost about $100,000. The V-22 went into operational service last year. The Growler program ended up several years late and costing over $200,000 a unit. After contract award various new requirements and systems were added including an air suspension so that the vehicle could be lowered to fit in the Osprey, as the base vehicle was too tall. The Growler is considered too vulnerable for use in Iraq but may be deployed to Afghanistan. This shows that if you change things after contract award you get more cost and time. DoD has proposed locking requirements at contract award, but that may be hard to implement.

Marines Buy Guns from Colt

Colt Defense LLC was awarded a contract by the USMC for a new squad support weapon. The Journal Inquirer reports the contact is worth almost $10 million. This follows a recent contract for M4 rifles won by the company worth about $150 million. This contract will purchase parts and cartridges for the new system.

U.S. Awards Military Simulator Contract to Raydon

Raydon was awarded a contract worth over $45 million if all options are exercised to provide military vehicle simulation and training for the U.S. military. The Orlando Sentinel writes that the contract is a major coup for the smaller Raydon when compared to its competitors in the Orlando area like Lockheed Martin. While only 300 persons strong the company has demonstrated an ability to build and operate military vehicle simulators, and especially military convoy simulators used to train troops going to Iraq and Afghanistan. The main threat over the last few years to U.S. troops has been IED and attacks on vehicle convoys so the U.S. has invested heavily in training troops to counter these types of attacks. Simulators are only part of the solution as the U.S. has built whole networks of simulated Iraqi terrain at the U.S. training ranges.

Navy Awards Boeing EF-18G Support Contracts

Boeing was awarded a variety of contracts by the U.S. Navy to provide support to the EF-18G electronic warfare aircraft. The St. Louis Business Journal says the contracts are worth a total of over $90 million. The contracts will provide parts, engineering services and logistical support. The EF-18G is replacing the venerable EA-6 aircraft used since Vietnam by the U.S. Navy and Marines.

USMC Systems Command awards SETA contrac

TAIC was awarded a 10 year contract worth up to $500 M to provide SETA support to the US Marine Corps Systems Command at Quantico, VA. TAIC will provide technical, engineering and other support to the USMC program offices that develop and procure hardware for the Corps. TAIC team included 18 other companies.

For more see this at www.redorbit.com.

Alabama construction company wins contract to build up Camp Lejuene

Caddell Yates, a Montgomery, AL, company was awarded a $180 M contract to build a new facility at the USMC’s Camp Lejuene in North Carolina. The contract could be worth even more if other options are exercised. It seems that this facility will be support a new Marine Regiment forming at the Camp as part of the planned expansion of the USMC.

See an article at Montgomeryadvertisor.com.

Marines buy more MRAP vehicles

The USMC awarded Navistar a contract to purchase more of their new, lighter vehicles. The contract is worth about $750 M and will buy 800 or so vehicles. The trend in recent MRAP buys has been to get smaller and less bulky vehicles for service in Iraq and Afghanistan. The Marines especially have cut back on MRAP buys and moved away from the original vehicles.

Navistar makes the MRAP in Mississippi and the press release can be found at The Wall Street Journal’s MarketWatch.com site here.

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