October 29, 2019 | International, Naval

After a leadership shakeup at General Dynamics, a murky future for submarine building

By: David B. Larter

WASHINGTON — Submarine building, the pride of the U.S. Navy's shipbuilding efforts over the past decade, is facing a mountain of uncertainty, a point underscored by the replacement of senior members of General Dynamics leadership, compounding delays with construction of the Virginia-class submarine and nagging questions about the quality of the work after a high-profile welding issue threatened to trip up the Columbia-class ballistic missile sub program at the starting line.

Adding to the uncertainty for General Dynamics, which operates the Electric Boat shipyard in Connecticut, are indications that profits from constructing Virginia-class subs may be slipping. And challenges in training new workers in the complex world of building subs as well as concerns that the Columbia program might negatively affect General Dynamics' bottom line are impacting General Dynamics' partner yard Huntington Ingalls Industries in Newport News, Virginia, as well as the U.S. Navy.

Furthermore, a contract for the significantly larger Block V Virginia-class submarine, expected to be one of the largest in the Navy's history, has been repeatedly delayed amid disputes over labor rates, sources told Defense News. That contract is more than a year past due, according to Navy budget documents.

In September, General Dynamics pushed out Electric Boat President Jeffrey Geiger. Industry and Navy sources, speaking on the condition of anonymity, said Geiger's replacement was the culmination of mounting frustration on the part of the Navy. That came to a head when quality control issues surfaced with missile tubes in production destined for the Virginia Payload Module, Columbia-class subs and the United Kingdom's replacement ballistic missile sub.

Geiger's ouster came on the heals of General Dynamics replacing long-time executive John Casey as head of the Marine Systems division when he retired earlier this year.

The shakeup, delays and lingering issues put the Navy and the submarine-building enterprise at a crossroads. It's clear that the Navy's efforts to ramp up production of its Virginia-class attack boats ahead of Columbia have encountered myriad issues and delays. But while delays may be acceptable for the Virginia program, the interconnected nature of submarine building means those delays could eek into a program that the Navy has for years insisted cannot be delayed any further: the replacement of its aging Ohio-class ballistic missile subs, part of the nuclear deterrent triad.

The Navy has said Columbia must be ready for its first patrol in 2031 to ensure the nation doesn't fall below a dangerous threshold where retiring Ohio-class submarines leaving the country without an adequate number of boats to execute its deterrent strategy. But to head that off, the Navy may have reduce its expectations of the industrial base's capacity to build submarines, said Bryan Clark, a senior fellow at the Center for Strategic and Budgetary Assessments think tank and a retired submarine officer.

“The Navy is going to have to reduce its appetite for submarine capacity while it gets the construction process in a better position,” he said. “All of the things we have seen in the past year in the submarine-building enterprise are the results of the ramped-up production levels and the challenges that EB [Electric Boat] faces in hiring more workers up in Connecticut.

“They've been growing capacity, investing in infrastructure; they're trying to hire a bunch of workers and design engineers. [But] there just isn't a large workforce of those kinds of people up there as opposed to in Hampton Roads or the Gulf Coast. So there are a lot of challenges in ramping up production to [increase] Virginia-class production and, in addition, starting Columbia and beginning the Virginia Payload Module-equipped Virginias, which is a 30 percent larger submarine.”

A bridge to Columbia

In March, Defense News reported that all the Virginia-class submarines under construction were between four and seven months behind schedule. Naval Sea Systems Command pointed to the cumulative effect of ramping up to building two Virginia-class submarines per year. In a statement, the service's top acquisition official said the Navy was continuing to confront material, labor and shipyard infrastructure issues.

Labor issues in particular hit the Newport News yard, which told investors in a recent earnings call that profits had slipped by about 23 percent on the Virginia sub building because of delays associated with labor issues.

In the face of the mounting issues, the Navy should be willing to make difficult choices to get back on an even footing, Clark said.

“Are we going to make some tough choices and dial back submarine construction deliberately to make sure we can get Columbia started correctly?” he asked. “And that means maybe we slow down Virginia, maybe we go to one per year for at least a couple of years to catch up.”

Clark said the Navy should continue to fund two submarines per year but should expect that they will take longer to build while General Dynamics and Newport News stabilize their labor and parts issues.

Paring back submarine production is a tough pill to swallow for the Navy, as it's been fighting for years to prevent a shortfall of attack submarines in the coming decade. The Navy expects its inventory of attack boats to drop from 52 to 42 by the late 2020s as Cold War-era Los Angeles-class attack subs retire.

Furthermore, there's the question of whether scaling back production might invite a funding cut, which could make matters worse. The supplier and labor issues, after all, primarily stem from the 1990s when the Navy all but stopped buying submarines, which resulted in a contraction of the number of businesses that built submarine parts and a loss in skilled laborers who knew how to build them.

Less funding would likely have a detrimental effect on sub-building efforts, said Bill Greenwalt, a former Senate Armed Services Committee staffer.

“Under our current budget and appropriations process, slowing down — which likely implies cutting program funding — would exacerbate industrial base problems as it already has in the past due to lack of program demand,” Greenwalt said. “Congress and the Navy need to be prepared for industrial base surprises and seriously face the past problem of the underfunding of naval shipbuilding.”

“A flexible schedule and more realistic and flexible funding mechanisms will be needed to meet whatever industrial base challenges ... will inevitably arise,” he added. “In the near term we may even need to look at some of our allies' capabilities to meet shortfalls and help us keep on schedule until we rebuild U.S. capacity.”

Greenwalt's view tracks with that of General Dynamics, according to a source with knowledge of the company's thinking on the difficulties it has faced. The company considers ramping up production on the Virginia-class sub as essential to building a sufficient labor force and supplier capacity so the resources are available to build Columbia class on schedule, the source said.

‘Two-hump camel'

The Navy's top acquisition official, James Geurts, has similarly described the issue. On the possibility of building a third Virginia-class submarine in 2023, Geurts told the House Armed Services Committee's sea power panel in March that it would benefit the Columbia-building effort.

“We can get some of the additional workforce trained up, get some more of the supplier base and get some of the supplier builds out of the way before Columbia gets here,” he said.

Officials everywhere seem to agree that the labor force is the most critical factor when it comes to getting submarine building on track. In an exit interview with Defense News in August, outgoing Chief of Naval Operations Adm. John Richardson said turnover at shipyards was a challenge but also an exciting chance to build a new generation of skilled labor.

“We're asking a lot of the submarine industrial base right now to continue with Virginia, two to three per year including that payload module, and deliver Columbia,” Richardson said. “And the workforce is going through a transformation.

“The people who built and delivered the Virginia program, the Los Angeles program and Seawolf — those folks are retiring. We used to have this two-hump camel in terms of the demographics of the shipyard: You had the Cold Warriors and you had the post-9/11 folks. And that Cold War hump is gone. And I think that although it's going through some friction right now, it's really inculcating, indoctrinating and educating a brand-new workforce.”

Richardson also sounded a note of warning about work quality, saying that the managers overseeing the work for the submarine-building enterprise must be on top of their jobs.

“We've had some welding issues: We've got to be on that,” he said. “[It's] a lot closer oversight as we educate this new team.”

Clarification: The story has been updated to better reflect the arguments surrounding the future of submarine building.

https://www.defensenews.com/naval/2019/10/28/after-a-leadership-shakeup-at-general-dynamics-a-murky-future-for-submarine-building/

On the same subject

December 17, 2018 | International, Aerospace

Northrop Grumman Formally Unveils Firebird UAS
Steve Trimble | Aviation Week & Space Technology Northrop Grumman has confirmed plans to launch a new product for an intelligence-gathering aircraft or service based on a newly unveiled, mature configuration of the Firebird, the optionally piloted, single-engine aircraft that first emerged as a Scaled Composites-designed demonstrator in 2011. The twin-boomed Firebird's formal launch, expected in early 2019, will reveal a new entrepreneurial strategy for the San Diego-based Autonomous Systems division of Northrop. Instead of designing the Firebird to compete directly for a share of a market already dominated by another manned or unmanned aircraft, Northrop hopes to stimulate demand for a product that offers a new set of capabilities. Full article: http://aviationweek.com/defense/northrop-grumman-formally-unveils-firebird-uas
June 25, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

Contract Awards by US Department of Defense - June 21, 2019
U.S. SPECIAL OPERATIONS COMMAND Raytheon Space and Airborne Systems, McKinney, Texas, was awarded a $96,639,799 indefinite-delivery/indefinite-quantity contract modification (P00007) with firm-fixed-price and cost-plus-fixed-fee contract line items to an existing contract (H92222-16-D-0033). This contract modification increases the ceiling from $203,360,201 to $300,000,000 for continued low-rate initial production of the Silent Knight Radar system in support of U.S. Special Operations Command (USSOCOM). Fiscal 2019 procurement funds in the amount of $54,720,000 are being obligated at time of contract modification. The remaining costs will be funded via delivery/task orders, and depending on the requirement, may be funded using research, development, test and evaluation; procurement; or operations and maintenance funding. The ordering period is valid for five years. The work will be performed in McKinney and Forest, Mississippi, and is scheduled to be completed by October 2022. USSOCOM headquarters, Tampa, Florida, is the contracting activity. NAVY Leidos Inc., Reston, Virginia, is awarded an estimated $72,817,062 indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, cost-plus-incentive-fee, firm-fixed-price contract for the Transformational Reliable Acoustic Path System (TRAPS) on behalf of the Maritime Surveillance Systems Program Office, Navy Program Executive Office Submarines. The TRAPS capability complements fixed surveillance systems and the surveillance towed array sensor system. TRAPS provides flexible and responsive wide area surveillance for theater antisubmarine warfare commanders worldwide. This contract has a three-year ordering period up to the contract award amount. There are no options. Work will be performed in Long Beach, Mississippi, and is expected to be completed by June 2022. No funding is obligated at the time of award. Funds will be obligated as individual delivery orders are issued. This sole-source contract was not competitively procured in accordance with 10 U.S. Code 2304(c)(1) - only one responsible source (Federal Acquisition Regulation subpart 6.302-1). The Naval Information Warfare Systems Command, San Diego, California, is the contracting activity (N00039-19-D-0030). FlexDecks Inc.,* Houston, Texas, is awarded a $17,200,997 firm-fixed-price, indefinite-delivery/indefinite-quantity contract to procure up to 40 each V-22 and MV-22B maintenance wing platform stands for the Marine Corps, Air Force, Navy and the government of Japan. Work will be performed in Houston, Texas, and is expected to be completed in June 2024. Fiscal 2017 and 2018 aircraft procurement and foreign military sales funds in the amount of $5,490,973 will be obligated at the time of award, $4,519,637 of which will expire at the end of the current fiscal year. 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Fiscal 2019 shipbuilding and conversion (Navy) funding in the amount of $13,932,928 will be obligated at time of award and will not expire at the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with one offer received. The Naval Sea Systems Command, Washington Navy Yard, Washington, District of Columbia, is the contracting activity. AIR FORCE Accenture Federal Services LLC, Arlington, Virginia, has been awarded a $65,447,464 other transaction agreement for the execution of the enterprise information technology as a service compute and store risk reduction effort experiment. This agreement provides for an experiment for services to include providing a flexible and scalable hosting solution for applications and data, operation and maintenance of the compute and store environment, and application rationalization. Work will be performed in Buckley Air Force Base, Colorado; Maxwell AFB, Alabama; Offutt AFB, Nebraska; Joint Base Elemendorf-Richardson, Alaska; Cannon AFB, New Mexico; and Hurlburt Field, Florida, and is expected to be completed by June, 2020. Fiscal 2019 operations and maintenance funds in the amount of $28,517,000 are being obligated at the time of award. The Air Force Life Cycle Management Center, Hanscom AFB, Massachusetts, is the contracting activity (FA8726-19-9-0002). Harris Corp., Colorado Springs, Colorado, has been awarded an $18,084,893 cost-plus-fixed-fee contract modification (P00003) to previously awarded FA8819-19-C-0002 for the manufacturing of Air Force Satellite Control Network complaint L and S band antennas for the space combat range. Work will be performed at Colorado Springs, Colorado; and Kirtland Air Force Base, New Mexico, and is expected to be completed by June 19, 2021. Fiscal 2019 research, development, test and evaluation funds in the amount of $18,084,893 are being obligated at the time of award. The Air Force Space and Missile Systems Center, Los Angeles AFB, California, is the contracting activity. Northrop Grumman Innovation Systems, Fort Worth, Texas, has been awarded a $17,780,580 cost-plus-fixed fee with an embedded fixed-price and cost reimbursement contract to provide sustainment services for the Lebanese Air Force Armed Caravan Program. This contract provides field service representatives, repair and return, calibration, support equipment and spares. Work will be performed in Beirut, Lebanon, and is expected to be completed June 30, 2021, with the possibility of extending the completion date to June 30, 2024. This contract involves 100% foreign military sales to Lebanon. This award is the result of a sole source acquisition. Foreign Military Sales funds in the amount of $10,732,607 are being obligated at the time of the award. 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January 4, 2019 | International, Aerospace

Lockheed Martin souhaite livrer 130 F-35 en 2019
Par Justine BOQUET Lockheed Martin a annoncé sa cible de livraison pour 2019. Lockheed Martin espère pouvoir ainsi livrer 130 avions de combat de cinquième génération F-35. Le 20 décembre, Lockheed Martin a fait le bilan des livraisons du F-35 et a annoncé ses objectifs pour l'année 2019. Lockheed Martin ambitionne ainsi de remettre au moins 130 avions de combat F-35 à ses clients au cours de l'année. Si cet objectif est atteint, Lockheed Martin enregistrera alors une augmentation de plus de 40% de sa production. Une telle hausse a d'ores et déjà été enregistrée au cours de l'année 2018. Avec 91 F-35 livrés, Lockheed Martin a ainsi vu ses cadences de production augmenter de 40% par rapport à 2017 et de 100% en comparaison à 2016. Le 91ème appareil produit en 2018 a été remis au corps de Marines américain. Il s'agissait d'un F-35B. Il vient s'ajouter aux 53 appareils qui avaient d'ores et déjà été remis aux forces américaines au cours de l'année passée. Avec la livraison des 91 F-35 en 2018, ce sont désormais 355 avions de combat de cinquième génération qui ont été livrés par Lockheed Martin. La flotte cumule plus de 175 000 heures de vol, rapporte ainsi l'industriel. Parmi les clients du F-35, on compte donc les Etats-Unis, l'Australie, Israël, l'Italie, le Japon, la Corée du Sud, les Pays-Bas, la Norvège, la Turquie, le Royaume-Uni, le Danemark et la Belgique. http://www.air-cosmos.com/lockheed-martin-souhaite-livrer-130-f-35-en-2019-118799

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