Air Force grounds most C-130Hs due to cracked propeller barrels

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  July 30, 2020 | International, Aerospace

  Financial pressures on Boeing’s commercial biz results in another $155M charge for the KC-46 tanker

  By: Valerie Insinna WASHINGTON — Boeing must pay another $151 million out of its own pocket for the KC-46 program, but this time the charge isn't associated with technical problems that have plagued the tanker's development. While Boeing announced its second-quarter earnings Wednesday, it said the KC-46 charge was “primarily driven by additional fixed-cost allocation resulting from lower commercial airplane production volume due to COVID-19.” In short, because Boeing's commercial plane production has slowed down, it's costing more to produce the KC-46, a derivative of the Boeing 767 airliner that is manufactured on the 767 production line in Everett, Washington, and converted into a military tanker. Greg Smith, Boeing's chief financial officer, said with the ramp down of production on some commercial airliners, certain fixed costs have been transferred to other programs. “That's essentially what took place with tanker,” he told reporters during a media roundtable. “It was notable on tanker because of the margin that we're booking on, and therefore turned it into a reach-forward loss. There was impact on some of the other [commercial derivative] programs, but it was not really material at all.” Boeing is locked into paying any costs associated with the KC-46 that exceed the $4.9 billion firm fixed-price ceiling on its 2011 contract with the U.S. Air Force. The latest charge means Boeing will have spent more than $4.7 billion in company funds on the KC-46 program — almost equivalent to the Air Force's own investment in the program. But Smith pointed to the lack of performance-related losses for the KC-46 this quarter as a sign that the program is progressing. “We've still got a lot of work to do, but [we're] making good progress,” he said. Despite the tanker charge, Boeing's earnings for its defense and space sector were a bright spot for the company, which continues to grapple with financial distress caused by the coronavirus pandemic's impact on the travel industry and the ongoing grounding of the 737 Max. Boeing Defense, Space & Security logged $7 billion in new orders this quarter, including an award for three additional MQ-25 tanker drones for the U.S. Navy and 24 AH-64E Apache helicopters for Morocco. During a call with investors, Boeing CEO Dave Calhoun said the defense market remains healthy and that recent contracts “underscore the strength of our offerings.” https://www.defensenews.com/industry/2020/07/29/financial-pressures-on-boeings-commercial-biz-results-in-another-155m-charge-for-the-kc-46-tanker/

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  January 17, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Contract Awards by US Department of Defense - January 16, 2020

  AIR FORCE Raytheon Co., Marlborough, Massachusetts, is awarded a $442,265,464 cost-plus-incentive-fee undefinitized contract action for the force element terminal (FET) development effort. This contract provides for the design, development, testing, integration, and logistical support of a FET system that will transition the B-52 and RC-135 hardened communication terminals from the Military Strategic Tactical Relay satellite communications satellite constellation to the Advanced Extremely High Frequency satellite constellation. The majority of the work will be performed at Raytheon's facilities in Marlborough, Massachusetts; and Largo, Florida, and is expected to be completed by August 2023. This award is the result of a sole-source acquisition. Fiscal 2019 and 2020 research, development, test and evaluation 3600 funds, in the amount of $5,812,581, are being obligated at the time of contract award. The Air Force Life Cycle Management Center, Hanscom Air Force Base, Bedford, Massachusetts, is the contracting activity (FA8735-20-C-0003). Raytheon Co., Marlborough, Massachusetts, has been awarded a $36,848,806 cost-plus-fixed-fee contract modification (P00152) for the software encryption platform (SEP) engineering change effort, under the Family of Advanced Beyond Line-of-Sight Terminals (FAB-T) production contract. The contract action will develop and deliver an updated National Security Agency approved SEP. Work will be performed at Marlborough, Massachusetts, and is expected to be completed by March 2023. This award is the result of a sole source acquisition. Fiscal 2019 research, development, test and evaluation funding in the amount of $1,000,000 is being obligated at the time of award. The FAB-T Contracting Office, Hanscom Air Force Base, Massachusetts, is the contracting activity (FA8705-13-C-0005). ARMY LOC Performance Products,* Plymouth, Michigan, was awarded a $41,439,129 firm-fixed-price contract for the procurement of manufactured T-161 double pin track which is comprised of molded track pads, rubberized pins and forged track shoe bodies with bonded rubber backings to be used on the Army's Bradley family of vehicles, armored multi-purpose vehicle and Paladin family of vehicles. Bids were solicited via the internet with two received. Work will be performed in Plymouth, Michigan, with an estimated completion date of Jan. 12, 2022. Fiscal 2020 other procurement, Army funds in the amount of $41,439,129 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-20-C-0052). Lockheed Martin Corp., Orlando, Florida, was awarded a $9,829,327 modification (P00013) to contract W31P4Q-19-C-0071 for engineering services in support of the Hellfire Missile and Joint Air-to-Ground Missile. Work will be performed in Orlando, Florida, with an estimated completion date of Jan. 15, 2021. Fiscal 2020 missile procurement, Army funds in the amount of $9,829,327 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. DEFENSE LOGISTICS AGENCY Carter Enterprises,** Brooklyn, New York, has been awarded a maximum $21,105,765 firm-fixed-price, indefinite-quantity contract for coats and trousers. This was a competitive acquisition with six responses received. This is a one-year base contract with three one-year option periods. Location of performance is New York, with a Jan. 15, 2021, performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1206). NAVY Crowley Government Services, Jacksonville, Florida (N62387-15-C-2505), is awarded a $20,771,542 firm-fixed-price contract with reimbursable elements extension by invoking Federal Acquisition Regulation (FAR) 52.217-8 “option to extend services” to continue the operation and maintenance of five Tactical Auxiliary General Ocean Surveillance (T-AGOS) vessels; and two missile range instrumentation ships (T-AGM). This option includes a 365-day base period of performance, four one-year option periods, and a Federal Acquisition Regulation (FAR) 52.217-8 “option to extend services” option period for up to six months, which, if exercised, would bring the cumulative value of this contract to $375,202,948. Work will be performed at sea worldwide and is expected to be completed by July 21, 2020. Fiscal 2020 Navy operations and maintenance funds in the amount of $20,771,542 will be awarded at time of award and will expire at the end of fiscal year. This contract extension was not competitively procured. The contract was prepared under the provisions of 10 U.S. Code § 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii) (only one responsible source and no other supplies or services will satisfy agency requirements). The Military Sealift Command, Norfolk, Virginia, is the contracting activity (N62387-15-C-2505). MAC LLC, Bay St. Louis, Mississippi, is awarded a $9,998,493 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the purchase of up to a maximum of 2,400,000 MK323 Mod 0 polymer cased .50 caliber linked cartridges, and .50 caliber armor piercing/armor piercing incendiary polymer cased linked cartridges. Work will be performed in Bay St. Louis, Mississippi, and is expected to be completed by January 2024. Fiscal 2019 procurement ammunition (Marine Corps) funds in the amount of $3,051,359 will be obligated on the first delivery order immediately following contract award and funds will expire the end of fiscal 2021. The contract was awarded on a sole source basis in accordance with Federal Acquisition Regulation 6.302-1.The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-20-D-5200). *Small Business **Small Business in Historically Underutilized Business Zone https://www.defense.gov/Newsroom/Contracts/Contract/Article/2059429/source/GovDelivery/

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  February 16, 2018 | International, Aerospace, C4ISR

  Canada rejoins NATO Airborne Warning and Control System program

  News Release From National Defence February 14, 2018, Brussels, Belgium — National Defence / Canadian Armed Forces The Government is committed to both the security and safety of Canadians and the protection of their rights and freedoms. Canada is playing a strong and constructive role in the world by making concrete contributions to international peace and security – including at the North Atlantic Treaty Organization (NATO). NATO is a cornerstone of Canada's international security policy and today the Government announced its intention to rejoin to the Alliance's Airborne Warning and Control System (AWACS) program. Programs such as AWACS, and the joint intelligence, surveillance, and reconnaissance it provides, are increasingly relevant in today's security environment. In response to the challenges posed by that environment, NATO has significantly increased the use of its AWACS operations, including in areas like Central and Eastern Europe where Canada is leading a multinational NATO battlegroup based in Latvia. Canada decided to withdraw from the AWACS program in 2011 following the Department of National Defence's 2010 Strategic Review. Quotes “NATO is a cornerstone of Canada's international security policy, and is one of our most important multilateral relationships. In that spirit, Canada has decided to rejoin NATO's Airborne Warning and Control System. AWACS is a key NATO capability that we will support by contributing to its operations and support budget. We have committed to keeping Canada engaged in the world, and continuing to commit ourselves to NATO and its missions are important steps toward that goal.” Harjit S. Sajjan, Defence Minister Quick Facts The Airborne Warning and Control System (AWACS) was established in 1978 and consists of a fleet of NATO-owned aircraft giving the Alliance abilities to conduct long-range aerial surveillance, and to command and control forces from the air. Part of Canada's commitment to NATO, as outlined in Strong, Secure, Engaged, includes: Leading and/or contributing forces to NATO and coalition efforts to deter and defeat potential adversaries, including terrorists, to support global stability; Leading and/or contributing to international peace operations and stabilization missions with the United Nations, NATO, and other multilateral partners. The NATO Airborne Warning and Control System has sixteen E-3A aircraft. These modified Boeing 707s are easily identifiable from the distinctive radar dome mounted on the fuselage. The E-3A usually operates at an altitude of around 10 km. From this altitude a single E-3A can constantly monitor the airspace within a radius of more than 400 km and can exchange information – via digital data links – with ground-based, sea-based and airborne commanders. By using pulse Doppler radar, an E-3A flying within NATO airspace can distinguish between targets and ground reflections and is therefore able to give early warning of low- or high-flying aircraft operating over the territory of a potential aggressor. Contacts Byrne Furlong Press Secretary Office of the Minister of National Defence Phone: 613-996-3100 Email: byrne.furlong@forces.gc.ca Media Relations Department of National Defence Phone: 613-996-2353 Email: mlo-blm@forces.gc.ca https://www.canada.ca/en/department-national-defence/news/2018/02/canada_rejoins_natoairbornewarningandcontrolsystemprogram.html