Filed under: Boeing, California, Companies, Congress, Events, Federal Budget Process, Services, States
Legislation would prevent gaps in Air Mobility Mission with Transition from KC-10 to KC-46 Tankers
WASHINGTON, DC – Today, Congressman Jon Runyan (R-NJ-03) and Congressman John Garamendi (D-CA-03) introduced H.R. 4230 bipartisan legislation that seeks to limit the retirement of the KC-10 aircraft.
Retiring the entire KC-10 fleet was not part of the Obama Administration’s FY15 defense budget proposal, yet Secretary of Defense Hagel stated that “if sequestration resumes at full force in 2016, the Air Force would have to retire its entire fleet of KC-10 tankers.”
This legislation seeks to ensure that the KC-10 tanker aircraft fleet is not retired prematurely and is available to continue to carry out its critical air refueling and cargo missions. The bill specifies that no funds can be used to retire or store the KC-10 aircraft until the new KC-46A tanker has been tested, is fully operational, and four test and 18 initial tankers have been delivered.
“Air Mobility Command is responsible for the rapid delivery of military assets around the world – something that will continue to grow in importance. This bill would strengthen the continuity of this vital mission,” said Congressman Garamendi, co-chair of the Congressional Air Mobility Caucus. “This bipartisan legislation would ensure that the Air Force maintains its strategic refueling capability as it transitions from the KC-10 to the KC-46 aircraft over the next few years. The bill requires that critically important acquisition and delivery milestones for the KC-46 are met before a KC-10 divesture could occur. This bill would help maintain stability in the military operations at Travis Air Force Base, our nation’s ‘Gateway to the Pacific.’”
“The KC-10 aircraft, which is the largest, newest, and most capable refueling aircraft currently in the military’s inventory, is a workhorse and vital to meeting air refueling mission taskings for the Arctic, Trans-Atlantic, and Pacific routes,” said Congressman Runyan. “As one of two primary homes to the KC-10, JB MDL is vital to carrying out these critical missions. The KC-10 has made a huge impact on mission readiness by combining long-range aerial refueling and cargo transport, and can be refueled in flight. It is crucial that we keep the KC-10 in full operation until the new KC-46 is completely ready for prime time.”
Runyan and Garamendi, both members of the House Armed Services Committee, teamed up last October and sent a letter to Secretary Hagel urging the DoD not to eliminate the entire fleet of KC-10 aircraft. Both Congressmen have also addressed this issue on several occasions with Air Force and DoD leadership in recent and past House Armed Services Committee hearings and conference calls, expressing their strong concerns that the KC-10 not be retired prematurely.
Click here to read text of H.R. 4230.
Filed under: Business Line, California, Companies, Congress, Events, Press Releases, Services, States, U.S. Air Force
WASHINGTON, DC – Today, Congressman John Garamendi (D-Fairfield, CA), a Member of the House Armed Services Committee, is pleased to highlight that the Department of Defense’s FY 15 budget proposes that eight KC-135 air refueling tanker would be moved to Beale Air Force Base, which is located near Marysville, California. Congressman Garamendi’s office has vigorously supported Beale’s personnel and its military assets, which both play a key role in our national security and in supporting the local economy.
“In a period of budgetary uncertainty and change, the Airmen at Beale Air Force Base remain a rock of professionalism and focus as they carry out the vital mission of Intelligence, Surveillance, and Reconnaissance,” said Congressman Garamendi. “Bringing KC-135 tankers back to the base would help the Air Force utilize the remarkable talents of Beale’s personnel while expanding the core missions of the base. This would be especially important for reservists, whom I met recently and who have made a long term commitment to living in the area. During this period of transition, I will continue use my position on the Armed Services Committee to forcefully advocate for the Beale community.”
Locating the KC-135, an AF Reserve and Air Mobility Command asset, at Beale would strengthen its connection with Travis Air Force Base in Fairfield. Both bases are in the 3rd Congressional District, which Garamendi represents.
· Is leading the return the KC-135 mission back to Beale Reserve Units, as proposed in the President’s budget;
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Filed under: ISR, Kansas, Syndicated Industry News, Textron, United States
Filed under: Air National Guard, Alenia Aeronautica, Arizona, Italy, Syndicated Industry News
Filed under: Business Line, Companies, development program, Events, IT, logistics, North Carolina, Press Releases, States
National Rankings List Innovation and Commercialization Firm at Number 42
The rankings, from AreaStartups.com, lists Montie Design at number 42, joining such high-profile companies as Channel Advisor, iContact, SAS, Global Knowledge Training, and Bandwidth.com as online destinations for customers and prospects interested in securing top-quality products and services.
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Paying special attention to achieving excellence in functionality, operability, value and aesthetics regardless of market or industry, Montie Design staffers have helped turn over 750 exciting product ideas into reality. The team is active in the product design and engineering market sector, utilizing a combined 140 years of knowledge and experience helping clients realize products that are economical to manufacture, elegant and robust.
In addition to serving customers in a myriad of industry sectors, Montie Design produces its own Montie Gear line of outdoor equipment, including a slingshot; ultralight knife; multi-purpose tree hook archery rest for sturdy support of a bow, crossbow, or rifle with a sling; a camp rack designed to hold pots, lids, serving bowls and utensils off the ground to dry after cleaning; and the popular X-Rest and AR-Rest shooting supports for hunters and recreational shooters.
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About Montie Design
Montie Design is an innovation and commercialization firm with core competencies in mechanical engineering and industrial design. Active in the product design, defense, and technology sectors, we leverage years of industry leadership and extensive technical capabilities to help clients take products from concept to marketplace that are economical to manufacture, elegant and robust. Montie Design is a North Carolina company headquartered in the Research Triangle region with clients across the country and overseas. We are dedicated to economic development throughout our home state and furthering excellence in design and engineering. For more information, visit www.montie.com.
Filed under: Business Line, Companies, Countries, Department of Defense, development program, Events, Hawaii, Lockheed Martin, MDA, Military Aviation, missile defense, New Jersey, northrop grumman, Northrop Grumman Corp., Poland, production program, Raytheon, Services, States, U.S. Army, U.S. Navy
In the early 1990’s in a response to Iraq’s use of Scud missiles during Desert Storm the U.S. military, led by the then Ballistic Missile Defense Organization (BMDO), now the Missile Defense Agency (MDA), began investing in defenses against shorter range threats. Previous efforts had been oriented to defending the United States from the large the Intercontinental Ballistic Missile (IBCM) based in the Soviet Union. All three of the major services had programs but the focus was on U.S. Army and Navy missile systems.
The Navy began developing 2 different systems that mirrored the Army’s path. Both involved modifying their current primary long range air defense system, AEGIS. This utilized large phase arrayed radars and the STANDARD Missile-2 (SM-2) interceptor. The AEGIS radars and other systems had originally been developed by General Electric (GE) but by the mid-1990’s had transitioned through Martin Marietta to Lockheed Martin (LMT). The SM-2 was produced by Hughes Missile Systems and Raytheon (RTN) but ultimately Raytheon acquired the whole business.
First, the missile, radars and command and control systems would have capability added to defense against shorter range missiles but still maintain their air defense mission. The Army was doing the same thing with their Patriot surface-to-air missile system. Secondly, a dedicated missile utilizing an exo-atmospheric kill vehicle would be developed. That meant the missile would not be able to engage air breathing targets but much longer ranged missiles.
By the early part of this century the air defense capable version, SM-2 Block IVA, had been cancelled due to budget and schedule issues. The long range SM-3, though, continued development and testing. It has proved successful including being able to intercept and destroy a failing satellite in 2008. The system has entered production and several cruisers and destroyers have been modified to utilize it. The Navy has continued development and the new SM-6 missile has just entered production at a new factory in Huntsville, AL.
The MDA has also decided as a way to supplement the current Ground Based Mid-Course System based in Alaska to develop “AEGIS Ashore”. This places the radars, other systems and missiles in trailers and containers that can be set up in different places and even moved around as necessary.
This program made a major step forward recently with the build up of the first test set that will be installed ultimately at the Pacific Missile Range Facility (PMRF) in Kauai, Hawaii for testing. Once that system is moved a second one will be installed at the main AEGIS production and development center in New Jersey. Ultimately the first set will be set up in Eastern Europe.
Originally the Bush Administration had planned on an expansion of the Alaskan ground based system into Poland and other parts of Eastern Europe. This was cancelled by the Obama Administration and AEGIS Ashore substituted. There is also plans to utilize AEGIS ships to provide missile defense converge of parts of NATO in Europe.
AEIGS Ashore is just one part of the continued Navy and U.S. investment in missile defense as it includes upgrades to the AEGIS radars, C2 systems and steady development of the STANDARD Missile. All of this will be to the advantage of key contractors like Lockheed and Raytheon. Further developments of a new radar, the Air and Missile Defense Radar (AMDR) also include bidders like Northrop Grumman (NOC) so as the program develops there will be chances of contract wins and work for other contractors. These efforts could also flow into the AEGIS Ashore or its replacement system in the future.
The U.S. Air Force announced the F-22 Raptor has resumed normal flight operations after modifications to aircrew life-support equipment were completed across the fleet. F-22 crews have also resumed their aerospace control alert mission in Alaska...
Filed under: Alabama, Alliant Techsystems, Austal, Business Line, Companies, Congress, Contract Additions, Contract Awards, Events, General Dynamics, Lockheed Martin, Marinette Marine, production program, Services, States, U.S. Navy, Wisconsin
The building of a modern warship requires not only the initial large contract with the builder but numerous other ones to buy components and support for the actual ships. Other systems are purchased with separate contracts and then items are provided to the builder for installation on the ships as they are assembled. The U.S. Navy is currently building new aircraft carriers, missile destroyers, Littoral Combats Ships (LCS), amphibious warfare ships as well as support vessels.
The LCS is being built by 2 different yards under 2 separate contracts. The LCS-1 design are made in Wisconsin by Marinette Marine and Lockheed Martin (LMT). The LCS-2 in Mobile, AL by Austal America and General Dynamics (GD). While they have dissimilar hull designs the basic weapon fit remains the same and both will carry mission modules. Up to 20 LCS are on contract to be built with the Navy periodically issuing contracts for 2 from each builder.
2 related contracts were recently awarded to support U.S. Navy ship construction. First General Dynamics (GD) received one for 8 MK 46 Naval Weapon Systems. The MK 46 is a 30mm cannon mounted in a stabilized turret. These will be installed on LPD-12 amphibious assault ships and the LCS. The contract is worth $26 million and is a follow on to previous contracts under which 30 systems have been delivered.
Then ATK (ATK), the ammunition and explosive manufacturer, received a contract for 30mm ammo. This $12 million contract is for incendiary rounds for the MK 46. It is a 5 year Indefinite Delivery / Indefinite Quantity (ID/IQ) contract with 1 base and 4 option years. As an ID/IQ the Navy will order off of the contract what is required to outfit ships with the Mk 46 weapon.
With Sequestration and the budget reductions recently passed by Congress and agreed to by the Obama Administration FY13 will probably not see many more major contracts awarded. There may be many though like these to support bigger programs already underway.
Filed under: Alaska, Lockheed Martin, missile defense, northrop grumman, Poland, Raytheon, Russia, Syndicated Industry News
Filed under: Brazil, Embraer, Florida, GAO, Hawker Beechcraft, Kansas, Syndicated Industry News, United States
Filed under: Boeing, Kansas, KC-X, KC-X Tanker News, Syndicated Industry News, wichita eagle
The Air Force and Boeing (BA) have been working hard on the KC-46A contract since its award. There have been some major developments including Boeing’s decision to move most of the work to Washington with plans to close their Wichita, KS military aircraft facility.
At the same time there is progress being made. Boeing has opened one of five simulation laboratories (SIL). This one is in Washington and will focus on avionics and software development. The use of the SIL will aid in risk reduction and program development.
There has also begun discussions of possible basing sites across the U.S. The first one chosen will be for crew conversion and training but ultimately the 767 based tanker will have several operational bases as well as flying from overseas locations such as Guam.
Bases also will be selected depending on how many aircraft the National Guard will operate. Already states like Vermont, Maine and Kansas are talking about being used.
“Burlington mentioned as basing possibility for new Air Force tanker” — Burlington Free Press
“McConnell awaiting decision on home for Air Force tankers” — The Wichita Eagle
“Military brass, state delegates christen new hangar for MAINEiacs” — Bangor Daily News
Filed under: Business Line, Companies, Contract Awards, Department of Defense, Events, Kansas, logistics, production program, Services, States
The United States Department of Defense buys many things to support its troops, their dependents, employees and retirees. One of the services it does provide is Commissaries and Exchanges on bases that allow grocery and household goods to be purchased. As with all stores they need supplies to function.
Envision is a small, disabled business in Kansas. They recently were awarded a contract to provide plastic bags for use at Commissaries and Exchanges. The contract is worth over $47 million.
Envision has already executed several of these contracts and were the only bidder on the new one. It is estimated they will provide over 1 billion bags under this contract.
Federal procurement regulations state that a company employing disabled people is a preferred source. Along with these are Native American owned and those that employ prison labor.
Filed under: Business Line, Companies, Contract Awards, Department of Defense, Events, General Dynamics, Maine, production program, Services, States, U.S. Army
The U.S. military even though the fighting is winding down in Afghanistan still needs to invest in new equipment to replace older weapons. Demand will be going down after 2014 when the last troops return and so without sequestration contractors will see reduced orders for their products.
The M2 50 caliber machine gun has been in use with the U.S. and its allies since before World War II. It is mounted on aircraft, vehicles and used from tripods carried by Soldiers. There have been tens of thousands of them made and even though a new design was recently developed it is still manufactured by General Dynamics (GD). The original weapon was made by Browning and has gone through a series of owners since originally delivered.
GD just received yet another contract for these weapons to be manufactured at their Maine plant. The almost $30 million contract will be for 12,000 of the systems.
As the defense budget begins its decline next year and the military adjusts to new requirements the demand for weapons like these will most likely decline as well. Less will be used in combat meaning existing ones will last longer. There may be more work refurbishing existing weapons then buying new ones.
Filed under: Alabama, Business Line, Companies, Contract Additions, Contract Awards, development program, Events, MDA, missile defense, production program, Raytheon, Services, States
As the Fiscal Year 2012 comes to an end contracts continue to be awarded although they should dry up as the government moves to begin closing out the books on this year and begin executing next year’s budget. FY 2013 looks to start with an extended Continuing Resolution Authority (CRA) which could limit what can be done with available funds.
One program that has had steady awards is Raytheon’s (RTN) work producing the SM-3 missile for the U.S. Missile Defense Agency (MDA). The SM-3 is part of the ship based AEGIS system and is optimized to engage enemy ballistic missiles. Further versions are being developed to deal with more complicated and longer range threats but the SM-3 has been tested several times in Hawaii and is equipping the U.S. and Japanese AEGIS ships.
The most recent award was for 19 missiles and has a value of over $200 million. This follows a contract awarded in July worth almost a billion dollars for development effort for a new version of the missile.
Raytheon is building a new facility in Huntsville, AL to produce the SM-3 missiles.
Filed under: Business Line, Companies, Contract Additions, Contract Awards, Department of Defense, Events, Konsberg, Pennsylvia, production program, Services, States, U.S. Army
Kongsberg is a Norwegian conglomerate that supports the maritime and oil industries as well as having a fairly active defense group. One of its more important products this last decade is supporting the U.S. Army through the production of Crew Remote Operated Weapon Systems (CROWS).
CROWS allow a soldier to aim and fire his weapon while inside his vehicle under maximum protection. The CROWS consists of a turret mounting a variety of machine guns or grenade launchers, visual detecting and aiming systems, and controls for the gunner. The use of these type of mountings has greatly reduced casualties by reducing the exposure of the crews to direct fire as well as the mine and Improvised Explosive Device (IED) threat.
The Army has just awarded Kongsberg a further five year contract for production of the systems. If all options are exercised the contract could be worth up to just under a billion dollars. Previous contracts have seen Kongsberg deliver almost 10,000 systems for use on HUMVEE’s, MRAP vehicles and other support vehicles.
The company operates a plant in Pennsylvania to support these efforts.
Filed under: Business Line, Companies, Contract Awards, Department of Defense, Events, IT, logistics, Services, States, U.S. Air Force
The Air Force recently awarded a contract to build a new headquarters for the Strategic Command (USSTRATCOM). This will be like its predecessor at Offut AFB, Omaha, Nebraska. USSTRATCOM replaced the old Strategic Air Command (SAC) merging control of all of the U.S. nuclear weapons on aircraft, missiles and submarines. Previously SAC controlled the bomber and ICBM fleets while the Navy kept control of its ballistic missile submarines.
The original SAC headquarters was built about 50 years ago. The new almost 1,000,000 square foot facility’s initial construction contract worth about $120 million was awarded to Kiewit Phelps. The total construction could cost close to $500 million. This does not include the costs of installing new IT and support equipment.
General Curtis LeMay was commander of B-29 aircraft bombing Japan during World War II and went on to command SAC in the Fifties building it into the force it was. He then became Chief of Staff of the Air Force.
Filed under: Alabama, Business Line, Companies, Countries, EADS, Events, production program, Seeking Alpha, States
This is an article I wrote for Seeking Alpha discussing the decision by EADS to build a facility in Mobile, AL and its potential affect on Spirit AeroSystems.
Filed under: Business Line, Companies, Contract Awards, development program, Events, logistics, production program, Services, States, Textron, U.S. Marine Corps, U.S. Navy
The Farnborough Air Show in the U.K. is ongoing and normally one expects companies to announce large, aviation contracts. Even so one of the more interesting contracts awarded recently was by the U.S. Navy. This was to Textron, Inc. (TXT) and will begin initial production of the new hovercraft based landing craft for fast delivery of men and equipment from amphibious ships.
In the Eighties the Navy developed the Landing Craft Air Cushion (LCAC) for this mission. The advantage of the hovercraft based system was that it was much faster then traditional landing crafts, could drive further onto the beach and also traverse other types of terrains. The LCAC have seen heavy use in humanitarian operations as the U.S. Navy and Marine Corps have not done an amphibious assault in many years.
The close to $213 million contract is to build the first prototypes of the new Ship-to-Shore Connector (SSC) as well as design efforts and training material. Textron was the original designer and manufacturer of the LCAC.
The SSC is an improved version of the LCAC able to carry heavier loads as well as be easier to maintain. Many of the requirements have been driven by the need to transport heavier, more armored vehicles now used by the Marine Corps. This heavier weight has been caused by the IED and mine threat most common in Iraq and Afghanistan
If things go well Textron will receive follow-on contracts to begin larger scale production of more SSC to replace the aging LCAC fleet.
Filed under: Business Line, Companies, Department of Defense, development program, Events, Maryland, production program, Services, States, U.S. Army
I was quoted in an article in The Baltimore Sun about one of the entrants in the U.S. Army’s new rifle competition.
Filed under: Business Line, Companies, Congress, Connecticut, Department of Defense, Events, Federal Budget Process, General Dynamics, HII, production program, Proposal, Restructuring, Services, States, U.S. Navy, Virginia
The House and Senate are in the process of considering the President’s 2014 budget request. As often different committees will review it and make changes sometimes based on their own priorities which means adding things or removing items from the original request. The budget has to go through two committees in each the House and Senate. Then it is voted on and a Conference Committee held. This means that often the final budget is not necessarily similar to what was submitted in February.
Not only do different companies lobby Congress for inclusion of their products and projects but sometimes the Services will indirectly. There exist lists of “unfunded priorities” and needs that Congress may address even though they are not part of the budget request.
The House Armed Services Committee as part of its review has reportedly increased the Navy’s buy of U.S.S. Virginia class attack submarines by 1 more then requested. The Navy had originally planned to buy two a year but in order to meet budget cut goals and reduce spending only 1 was asked for in 2014. The HASC has bumped that back up to 2.
Congress also wants the Navy to consider signing a multi-year contract for 10 submarines. Multi-year contracts are normally for five years and done for systems, especially aircraft, in steady state production. This allows efficiencies and better pricing due to stable quantities and funding. Virginia submarines are currently built by two companies – Huntington Ingalls Industries (HII) in Virgina and General Dynamics (GD) Electric Boat in Connecticut and Rhode Island.
One of the problems that the Pentagon will face as it tries to cut money required to meet budget goals is that Congress is loathe to reduce programs. There are 435 House members and 100 Senators who see defense spending as a way to bring money and jobs into their districts. The idea of keeping one more submarine in the current budget will do so. It will also require the Navy to cut less money or take it from other budget priorities.
Filed under: Alabama, BAE Systems, Business Line, Companies, Congress, Contract Additions, Contract Awards, Countries, Department of Defense, development program, Events, MDA, missile defense, production program, Raytheon, Services, States, U.S. Navy
The AEGIS system is the primary ship based anti-air warfare weapon used by the U.S. Navy and some allied Navies. It consists of radars, fire control software, vertical and rail launchers and version of Raytheon’s (RTN) STANDARD missile. It has been in use since the 1970′s and consistently upgraded.
Using modified software and the SM-3 missile it provides ballistic missile defense. The SM-3 has the ability to engage targets at high altitude. More advanced models of the SM-3 are being developed with a new plant being constructed in Huntsville, AL at Redstone Arsenal.
A few years ago the Obama Administration decided to end deployment of the Ground Based Mid-course system in Europe. That Army operated ballistic missile defense program now has interceptors based in Alaska and sensors across the globe. A similar installation of interceptors was planned for Eastern Europe but it was decided to pursue other ways to provide the defense for NATO allies.
Part of this is to take an AEGIS system and base it on the land. This “AEGIS Ashore” will make the majority of the ship installed components and make them transportable. This includes radars, fire control installations, the SM-3 and a version of the Mk 41 Vertical Launch System.
BAE Systems (BAE:LSE) is the manufacturer of the Mk 41 through the acquisition of a U.S. defense contractor several years ago. The just received a further contract for Mk 41 components for both AEGIS ashore and new DDG-51 class destroyers. This contract has a value of about $23 million.
The contract will see Mk 41 components for DDG-116 and parts of the AEGIS Ashore installation. The use of the Navy’s missile system to provide land based missile defense is rather innovative and combined with ship based systems as well as the Army’s shorter ranged PATRIOT and THAAD provide some layer of defense for an area.
Pratt & Whitney and Boeing Representatives Sign Engine Contract to Power U.S. Air Force’s KC-46 Tanker — Press Release
Filed under: Boeing, KC-X, KC-X Tanker News, Syndicated Industry News, Washington
MUKILTEO, Wash., March 27, 2012 /PRNewswire/ — Bennett Croswell, president of Pratt & Whitney’s Military Engines division, and Maureen Dougherty, Boeing vice president and program manager, KC-46 Tanker Program, hosted a ceremonial engine contract signing event today at Boeing’s Tanker Program Office in Mukilteo, Wash., for contracts previously awarded to Pratt & Whitney. The contracts support PW4062 engine purchases to power Boeing’s KC-46, the U.S. Air Force’s new airlift tanker. Pratt & Whitney is a United Technologies Corp. (NYSE: UTX) company.
“The PW4000 engine family that will power these aircraft has an exceptional track record of performance and reliability with numerous commercial customers operating the engine globally,” said Croswell. “We are confident these engines will continue to perform exceptionally well in a military application for Boeing and for our ultimate customer, the men and women in uniform.”
Two Pratt & Whitney PW4062 engines, each with a 94-inch fan blade diameter, will exclusively power each U.S. Air Force KC-46 aircraft. The program’s scope, if fully exercised, calls for as many as 368 PW4062 engines to be delivered between 2013 and 2027. Actual production engine procurement quantities will be determined over the life of the program as established by future purchase orders.
“Pratt & Whitney’s PW4062 engine offers the KC-46 program an engine that has proven performance, fuel economy, and durability – qualities that make it the clear choice to power the KC-46 Tanker,” said Dougherty. “These engines bring tremendous capability to the KC-46, which supports superior multi-role mission performance by delivering more fuel, transporting more passengers and cargo, and offering enhanced aeromedical capabilities to our United States Air Force customer.”
Pratt & Whitney has delivered more than 2,500 PW4000-94″ engines that have collectively logged nearly 110 million flight hours on commercial aircraft around the world. The PW4062 is the highest thrust model in Pratt & Whitney’s PW4000-94″ commercial engine family and is offered for both commercial freighter and military tanker applications. The two PW4062 engines that will power the KC-46 each deliver 62,000 pounds of thrust.
The PW4000 engine family has an outstanding safety record, high reliability, excellent performance and low maintenance costs. The PW4000-94″ family meets emissions and noise regulations, and offers superior fuel economy and maintainability. The PW4000-94″ engine operates commercially on the Boeing 767, MD-11 and earlier Boeing 747 models.
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and building industries.
This press release contains forward-looking statements concerning future business opportunities. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to changes in government procurement priorities and practices, budget plans and availability of funding, and in the number of aircraft to be built; challenges in the design, development, production and support of advanced technologies; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the companies’ Securities and Exchange Commission filings.
Filed under: Alabama, Austal, Australia, Business Line, Companies, Congress, Contract Additions, Contract Awards, Countries, Events, Lockheed Martin, production program, Services, States, U.S. Navy
Following up on this mornings post about Lockheed Martin (LMT) getting a contract for two more Littoral Combat Ships (LCS) is an announcement that Austal USA, Austal’s American subsidiary, received a contract for two of their design as well.
The option for LCS-10 and LCS-12 was announced today. This is the third and fourth ship under the 10 ship contract the company received a little over a year ago. The ships will be built at Austal USA’s Mobile, AL yard.
LCS-10 will be named for Representative Gabrielle Giffords (D-AZ) who is recovering from an attempted assassination attempt.
Photo from Official U.S. Navy Imagery flickr photostream.
Filed under: Alabama, Austal, Business Line, Companies, Contract Additions, Contract Awards, Department of Defense, Events, Lockheed Martin, Marinette Marine, production program, Services, States, U.S. Navy, Wisconsin
The U.S. Navy in late 2010 awarded contracts to the two teams building the new Littoral Combat Ships (LCS) for ten platforms each. These were Lockheed Martin (LMT) whose mono-hull design will be built at the Marinette Marine yard in Wisconsin and Austal America in Mobile, AL. Austal America is the U.S. subsidy of Austal (ASB) the Australian manufacturer of fast ferries. The Austal design utilizes a catamaran hull.
Prior to these contracts each team was building two of the small warships. They have received orders under the new contract for two more and last week the Navy issued Lockheed a contract worth about $700 million for two more. This brings the total of LCS under order from Lockheed to six.
The Navy ultimately plans to operate 30 or more of the ships. They are designed to be equipped with different mission packages depending on the requirements. This includes anti-air, anti-ship and mind warfare among others. Like their name implies they are optimized for in-shore activities such as anti-piracy operations in the Indian Ocean and special warfare.
Even though the defense budget is being cut the Navy remains committed to building substantial numbers of the ship. The fact that it is built in smaller yards allows such construction.