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January 14, 2019 | International, Aerospace

Airbus joins forces with Lockheed to step in Boeing’s backyard

CLÉMENT CHARPENTREAU

One company's demise is another one's opportunity. Or in this case, two companies. Lockheed Martin and Airbus signed a memorandum of agreement to “jointly explore opportunities to meet the growing demand for aerial refueling for US defense customers.” The manufacturers are taking advantage of the difficulties encountered by Boeing's KC-46A Pegasus.

It was Airbus (partnered with Northrop Grumman at the time) that initially won the KC-X tender launched by the Pentagon for a new refueling system to equip the United States Air Force. With its A330 MRTT already in production, the European manufacturer was way ahead of its American rival whose KC-46 “Pegasus” was still on the drawing board. However, political concerns invited themselves into the acquisition process, and after several years of lobbying, the contract was eventually taken away from Airbus and given to Boeing. 179 aircraft were ordered, with the first aircraft to be delivered around May 2016, and the following 17 by 2017.

But since then, the KC-46 program had a bumpy flight, and the USAF is still waiting for its planes. The development of the tanker exceeded the initial forecast by $3 billion (which hints at a deliberate underestimation to win the contract over Airbus), and the delivery has been constantly delayed.

The last precise deadline in date, October 2018, was finally postponed to “a little later” by Air Force Secretary Heather Wilson in an interview to Bloomberg. In March 2018, Wilson commented on the matter in front of the Congress: “One of our frustrations with Boeing is they're much more focused on their commercial activity than on getting this right for the Air Force and getting these aircraft to the Air Force”. As Boeing was contractually obliged to deliver 18 planes and 9 refueling pods by October 2018, it will now face financial penalties. The KC-46 is currently ongoing certification with the FAA.

Boeing's struggle comes as a perfect opportunity for Airbus and Lockheed Martin to offer their services to the USAF and its allies, both in the short and long term. “These may range from ways to support critical near-term air-refuelling needs, such as a fee-for-service structure to conceptualizing the tanker of the future,” they said in a common press release.

In the coming twenty years, the USAF will need two new types of refueling aircraft. The programs should be respectively known as KC-Y, to replace the gigantic KC-10s, and KC-Z, a stealth tanker. This new partnership could allow Airbus to put its A330MRTT on the table once more, in a version adapted to the needs of the USAF that would use Lockheed Martin's competence in the matter. The tanker is now operated by six air forces around the world, and has already seen some actions.

While awaiting for the KC-Y tender to begin, Airbus could offer a leasing service to the USAF, in a similar way as AirTanker is already doing for the Royal Air Force with its ten Airbus Voyagers (A330 MRTT).

With Lockheed Martin as a partner, Airbus could set a foot in the U.S. defense industry... for good this time.

https://www.aerotime.aero/clement.charpentreau/22151-airbus-joins-forces-with-lockheed-to-step-in-boeing-s-backyard

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  • Contract Awards by US Department of Defense - July 29, 2020

    July 30, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - July 29, 2020

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The contractor shall provide all personnel, equipment, tools, materials, vehicles, supervision and other items and services necessary to perform installation-wide Municipal Solid Waste collection/disposal to include asbestos disposal service specific to Joint Base San Antonio (JBSA) Lackland, Texas. Municipal Solid Waste collection services at JBSA installations include Lackland, Randolph, Fort Sam Houston, Camp Bullis, Canyon Lake military recreation areas, and Seguin Airfield in Texas, in accordance with all local, state and federal laws, regulations, standards, instructions, commercial practices or international agreements. This award is the result of a competitive acquisition and five offers were received. Fiscal 2020 operations and maintenance funds in the amount of $18,288 are being obligated at the time of award. The contract is expected to be completed by Feb. 28, 2025. The 502nd Contracting Squadron, JBSA Lackland, Texas, is the contracting activity (FA3016-20-D-0024). 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  • After months of haggling, Lockheed moves on German air defense bid

    August 17, 2020 | International, Land

    After months of haggling, Lockheed moves on German air defense bid

    By: Sebastian Sprenger COLOGNE, Germany — Lockheed Martin and MBDA Deutschland have submitted another bid for Germany's next-generation air defense system, following negotiations throughout the summer that some observers said nearly tanked the project. The “updated proposal,” as the companies called it in a joint statement Friday, presumably will find smooth sailing in the Defence Ministry's upcoming analysis. That is because government officials and company executives already went through extensive discussions in the past few months to iron out sticking points left unresolved in previous bids and re-bids. “In the last months we made progress in further detailing the Integrated Master Schedule, relevant specifications as well as performance simulations to de-risk the future contract,” Thomas Gottschild, managing director at MBDA Deutschland, said in the statement. But there are no guarantees, especially when it comes to the famously circuitous Taktisches Luftverteidigungssystem, or TLVS. The program grew out of the now-defunct Medium Extended Air Defense System, which the Pentagon helped fund. Germany wants the weapon to replace its fleet of Patriot batteries. The German Defence Ministry did not immediately respond to a request for comment. The government in Berlin is under the gun to deliver military programs on time and on budget, especially now that the ministry wants to keep up defense spending despite the economic blow of the coronavirus pandemic. As a result, officials want to place greater financial liability on the contractors in case things go awry. That approach is infused throughout the TLVS contractual categories of “risk” and “terms and conditions,” industry officials previously said, though details are under strict wraps. Executives previously argued the proposed risk distribution is unsuitable for a development-heavy program like TLVS, making Lockheed especially wary of pursuing the deal after all. At the same time, the American defense giant finally needs to sell the program to a government customer if it wants the advertised revolution in missile defense equipment to actually happen. The envisioned weapon will feature a 360-degree sensing and shooting capability, which means operators no longer need to anticipate from which direction aerial threats will likely approach, as was the case with the sectored Patriot system. “TLVS will transform Germany's defense capabilities and set an important precedent in how neighboring nations address persistent global threats for years to come,” Lockheed and MBDA claimed in their joint statement. The German parliament, currently in recess, will have to approve the government's acquisition plan for TLVS — that is, if the industry consortium's newest submission makes the ministry's cut. https://www.defensenews.com/industry/2020/08/14/after-months-of-haggling-lockheed-moves-on-german-air-defense-bid/

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