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May 1, 2019 | International, Aerospace

Boeing awarded $5.7B for KC-46 Pegasus combat capability work

By Allen Cone

April 30 (UPI) -- Boeing has been awarded a $5.7 billion post-production contract for combat capability for the U.S. Air Force's troubled K-46 Pegasus refueling tanker aircraft.

The indefinite-delivery/indefinite-quantity contract, announced Monday by the Department of Defense, includes non-recurring and recurring requirements centered on user-directed and Federal Aviation Administration-mandated KC-46 air vehicle needs.

The KC-46 fleet is planned to replace the Air Force's Boeing KC-135 Stratotankers.

The company's $49 billion KC-46 program has seen multi-year delays and expenditure overruns. And deliveries have been halted multiple times because of foreign materials found in the jets after arrival from the factory.

Work on the new contract will be performed at Boeing's plant in Seattle and is expected to be complete by April 28, 2029.

Fiscal 2018 research, development, test and evaluation funds in the amount of $9.1 million have been obligated on the first delivery order at the time of award.

The military aerial refueling and strategic military transport aircraft are built from from empty Boeing 767 jet airliners in Everett, Wash., then transferred to a facility at the south end of Paine Field called the Military Delivery Center. That's where the jet's military systems, including the refueling and communications equipment, are installed.

The first two KC-46s were flown from Boeing's facilities to McConnell Air Force Base, Kan., in January, but deliveries were stopped within weeks.

The Air Force halted deliveries of the aircraft on Feb. 21 due to foreign object debris, including trash and industrial tools. Eight tools were found in aircraft under production at Boeing's facility, and two more in tankers delivered to the U.S. Air Force, according to an internal Boeing memo.

After inspections by the Air Force and the creation of an additional inspections plan, deliveries resumed about one week later.

In April, however, the Pentagon again halted accepting deliveries aircraft due to foreign object debris. The Air Force and Boeing has been working on an even more intense inspection process, including draining fuel tanks on all new aircraft so that they can be inspected for foreign object debris -- as with the rest of the planes -- Defense News reported.

Boeing plans to deliver 36 aircraft this year, said Mike Gibbons, Boeing vice president.

https://www.upi.com/Defense-News/2019/04/30/Boeing-awarded-57B-for-KC-46-Pegasus-combat-capability-work/4791556625605/

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  • Contract Awards by US Department of Defense - November 25, 2019

    November 26, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - November 25, 2019

    ARMY General Electric Co. - GE Aviation, Lynn, Massachusetts, was awarded a $1,336,809,577 modification (P00021) to contract W58RGZ-15-D-0048 for T700 engine deliveries in support of the Army H-60 and AH-64 programs, Navy H-60 programs, Air Force programs, Foreign Military Sales and other government agencies. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 31, 2024. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. AXXIS,* Fort Worth, Texas (W912DY-20-F-0001); Chinook Systems Inc.,* Cocoa Beach, Florida (W912DY-20-F-0002); Dewberry Design-Builders Inc., Raleigh, North Carolina (W912DY-20-F-0003); EPC Service Inc.,* Aiea, Hawaii (W912DY-20-F-0004); Honeywell International Inc., Morris Plains, New Jersey (W912DY-20-F-0005); Johnson Controls Building Automation Systems Inc., Huntsville, Alabama (W912DY-20-F-0006); KBRwyle Technology Solutions LLC, Columbia, Maryland (W912DY-20-F-0007); M. C. Dean, Tysons, Virginia (W912DY-20-F-0008); Parsons Technical Services Inc., Pasadena, California (W912DY-20-F-0009); Prime Mechanical of Wisconsin LLC,* Poynette, Wisconsin (W912DY-20-F-0010); SEI Group Inc.,* Huntsville, Alabama (W912DY-20-F-0011); Siemens Government Technologies Inc., Arlington, Virginia ( W912DY-20-F-0012); Spectrum Solutions Inc.,* Madison, Alabama (W912DY-20-F-0013); and Stewart Group Enterprises LLC,* Benson, North Carolina (W912DY-20-F-0014), will compete for each order of the $1,200,000,000 firm-fixed-price contract for procurement and installation of utility monitoring and control systems and similar services such as heating, ventilating and air conditioning systems. Bids were solicited via the internet with 28 received. Work locations and funding will be determined with each order, with an estimated completion date of Nov. 24, 2026. U.S. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity. Navistar Defense LLC, Lisle, Illinois, was awarded a $26,748,087 firm-fixed-price Foreign Military Sales (Somalia) contract for two commercial Medium Tactical Vehicle Variants -- the 6x6 General Transport Truck and the 6x6 Wrecker Vehicle Recovery Truck, and spare parts. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of Nov. 25, 2022. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-20-D-0016). Detyens Shipyards Inc.,* North Charleston, South Carolina, was awarded an $11,991,749 firm-fixed-price contract for dry dock and repair of the Dredge Wheeler, labor, materials and equipment. Bids were solicited via the internet with two received. Work will be performed in North Charleston, South Carolina, with an estimated completion date of Jan. 26, 2020. Fiscal 2020 operations and maintenance, civil works funds in the amount of $11,991,749 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-20-C-0004). NAVY Raytheon Co., El Segundo, California, is awarded a $403,301,277 modification (P00062) to a previously awarded cost-plus-incentive-fee contract (N00019-16-C-0002). This modification increases the scope of the contract to procure an additional seven System Demonstration Test Articles (SDTA) shipsets, 60 SDTA pod subsystems, 27 pieces of peculiar support equipment, one fatigue test pod and one static test pod in support of the initial operational test and evaluation phase of the Next Generation Jammer Mid-Band Program. Work will be performed in Dallas, Texas (33%); Forest, Mississippi (33%); El Segundo, California (22%); Andover, Massachusetts (7%); and Fort Wayne, Indiana (5%), and is expected to be completed in December 2022. No funds are being obligated at time of award. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. The Boeing Co., St. Louis, Missouri, is awarded a $172,233,232 modification to a previously awarded cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract (N00019-18-D-0001). This modification increases the ceiling of the contract to continue service life modifications to extend the operational service life from 6,000 flight hours to 10,000 flight hours of up to 23 F/A-18E/F aircraft. Work will be performed in San Antonio, Texas (59%); El Segundo, California (25%); and St. Louis, Missouri (16%), and is expected to be completed in May 2022. No funds are being obligated at time of award; funds will be obligated on individual orders as they are issued. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Applied Physical Sciences Corp., Groton, Connecticut, is awarded a $23,225,953 cost-plus-fixed-fee contract for the multi-disciplinary tools, technologies and experimental methods in support of future Naval platform stealth and operations. Work will be performed in Groton, Connecticut (87%); and Cheswick, Pennsylvania (13%), with an expected completion date of October 2024. The total cumulative value of this contract including the base period is $23,225,953. This contract has no options. Fiscal 2019 research, development test and evaluation (Navy) funds in the amount of $146,749 are being obligated the time of award and will not expire at the end of the current fiscal year. This contract was competitively procured under N00014-19-S-B001, "Long Range Broad Agency Announcement (BAA) for Navy and Marine Corps Science and Technology." Proposals will be received throughout the year under the long range BAA and the number of proposals received in response to the solicitation is unknown. The Office of Naval Research, Arlington, Virginia, is the contracting activity (N00014- 20-C-0001). Marine Solutions Inc.,* Nicholasville, Kentucky, is awarded a maximum $10,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity architect-engineering for inspection, structural engineering, design and post-construction award services for bridge structures at Navy and Department of Defense installations worldwide. The work to be performed provides for architect-engineer services to include, but not limited to: topside and underwater bridge inspections; bridge load capacity analysis and load ratings; analysis of existing conditions and comparison to previous inspections reports; design of bridge repairs, inclusive of plans and specifications, report preparation and cost estimates for bridge rehabilitations, and the review of such documents produced by others in accordance with the Naval Facilities Engineering and Expeditionary Warfare Center (NAVFAC EXWC) criteria and the National Bridge Inspection Standards. No task orders are being issued at this time. All work on this contract will be performed at various Navy and Marine Corps facilities and other government facilities predominantly in the U.S., but also worldwide. The term of the contract is not to exceed 60 months with an expected completion date of November 2024. Fiscal 2020 operation and maintenance, Navy (O&M, N)) contract funds in the amount of $10,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by O&M, N funds. This contract was competitively procured via the Navy Electronic Commerce Online website and Federal Business Opportunities website with seven proposals received. The NAVFAC EXWC, Port Hueneme, California, is the contracting activity (N39430-20-D-2206). Advanced Alliant Solutions Team, Fairfax, Virginia, is awarded a $9,038,301 modification (P00021) to a previously awarded cost-plus-fixed-fee contract (N00421-16-C-0068) to exercise an option for information assurance services in support of the Naval Air Warfare Center Aircraft Division's Digital Networks Applications. Work will be performed in Patuxent River, Maryland, and is expected to be completed by November 2020. Fiscal 2020 working capital funds (Navy) in the amount of $8,007,190 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. AIR FORCE Canyon Consulting, Los Angeles, California, has been awarded an $18,928,670 cost-plus-fixed-fee contract under the Small Innovation Research (SBIR) Phase-III program for the Advanced Global Positioning System technologies. This contract provides for wideband global positioning system digital payload and architecture. Work will be performed at Los Angeles, California, and is expected to be complete by Feb. 28, 2025. The total cumulative face value of the contract is $18,928,670. Fiscal 2019 research, development, test and evaluation funds in the amount of $700,000 are being obligated at the time of award. The Air Force Research Laboratory Geospace Technologies Branch, Kirtland Air Force Base, New Mexico, is the contracting activity. Sierra Nevada Corp., Sparks, Nevada, has been awarded a $13,720,071 cost-plus-fixed-fee modification (P00029) to previously awarded contract FA8509-17-C-0002 for the permanent installation of the MC-130J Airborne Mission Networking program. This out-of-scope modification provides for the procurement of an additional trial kit install, travel and interim contractor support. Work will be performed at Centennial, Colorado, and is expected to be completed by Nov. 16, 2021. This modification brings the total cumulative face value of the contract to $86,000,000. Fiscal 2019 and 2020 research, development, testing and evaluation funds in the amount of $1,162,453 are being obligated at the time of award. The Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity. DEFENSE LOGISTICS AGENCY Optim LLC, Sturbridge, Massachusetts, has been awarded a maximum $18,750,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for medical equipment. This was a competitive acquisition with 63 responses received. This is a five-year contract with no option periods. Location of performance is Massachusetts, with a Nov. 24, 2024, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D1-20-D-0003). MISSILE DEFENSE AGENCY Lockheed Martin Rotary and Mission Systems, Moorestown, New Jersey, has been awarded a $9,800,000 cost-plus-fixed-fee modification (P00347) under contract HQ0276-10-C-0001. This modification increases the total cumulative contract value by $9,800,000 from $3,162,719,877 to $3,172,519,877. Under this modification, the contractor will perform engineering and design support services necessary for continuation of planning efforts executed under the Technical Assistance Case to support the Aegis Ashore Japan Foreign Military Sales Main Case. The work will be performed in Moorestown, New Jersey, with an expected completion date of July 31, 2020. Funds from the government of Japan in the amount of $9,800,000 are being obligated at the time of award. This contract modification is the result of a sole source acquisition. The Missile Defense Agency, Dahlgren, Virginia, is the contracting activity. U.S. TRANSPORTATION COMMAND Phoenix Air Group Inc., Cartersville, Georgia, has been awarded a task order (HTC711-20-F-R013) under contract HTC711-16-D-R001 in the amount of $8,832,188. The task order provides continued charter air transportation services to the Headquarters U.S. Africa Command. Work will be performed in Stuttgart Army Airfield, Germany, to various points throughout Africa and Europe. The period of performance is from Jan. 1, 2020, to Dec. 31, 2020. Fiscal 2020 Air Force operations and maintenance funds were obligated at award of the task order. This task order brings the total cumulative face value of the contract value to $56,982,110 from $48,149,922. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2026407/source/GovDelivery/

  • Boeing Defense to Surpass Commercial Side For First Time In More Than a Decade

    April 30, 2020 | International, Aerospace

    Boeing Defense to Surpass Commercial Side For First Time In More Than a Decade

    But that's no cakewalk as new Air Force One and KC-46 tanker eat into the company's cash. Updated, April 30, 2020, with a U.S. Air Force statement. For the first time in 12 years, Boeing executives expect the company's defense and space unit to outperform its commercial airplane business, which is reeling from coronavirus and 737 Max losses. Boeing's defense business has not outperformed its commercial side since 2008, when the commercial market was still recovering from post-9/11 declines and U.S. defense spending spiked during the wars in Iraq and Afghanistan. The prediction comes on the back of pre-existing problems in the Boeing Defense, Space & Security division. The company's defense unit took a $1 billion hit in the first quarter of 2020, adding to the growing list of financial woes for the company trying to dig itself out of a massive hole. “This year ... the defense business will probably be bigger than the commercial business,” Boeing CEO David Calhoun said during a call with Wall Street analysts. “That will probably hold for a while.” MOST READ 1Artificial Intelligence Outperforms Human Intel Analysts In a Key Area 2Pentagon's ‘Willingness to Kiss the President's Ass' Worries Top Lawmaker 3Boeing Defense to Surpass Commercial Side For First Time In More Than a Decade SUBSCRIBE Receive daily email updates: Subscribe to the Defense One daily. Be the first to receive updates. ADVERTISEMENT Additionally, executives said Wednesday that Boeing would lose $827 million on its work building KC-46 aerial refueling tankers and $168 million on the new Air Force One 747s that will fly the president, according to executives and regulatory filings. It's the latest black eye for the tanker project, which has cost the planemaker more than $4 billion over the past nine years. However, it is the first cost increase on the high-profile Air Force One project, which President Donald Trump personally negotiated with former Boeing CEO Dennis Muilenburg. Boeing began work converting two 747 jetliners into the unique Air Force One configuration in January before the coronavirus pandemic forced many workers out of the office. “As we've had folks working virtually, and particularly on the engineering side — as well as that's gone — it's certainly experienced some inefficiencies that has caused us to reevaluate our estimate to complete those efforts,” Boeing CFO Greg Smith, said of the Air Force One project during a Wednesday afternoon call with reporters. “The team has been doing a great job managing the program and executing very well on many fronts, but this we could not offset in the quarter as a result of COVID,” he said. “The program remains on schedule and ... continuing to execute, but we're looking for opportunities obviously to mitigate any further risk that we may have as a result of COVID.” The terms of the Air Force One contract require Boeing, not taxpayers, to pay for any cost increases during the development of the plane, which the military calls a VC-25B. Despite the coronavirus-related issues, Ann Stefanek, an Air Force spokeswoman, said the project remains on track. “As planned in the baseline schedule, the next phase of modification is on course to begin in June 2020,” Stefanek said in an emailed statement. “To maintain current schedule, Boeing and the VC-25B program office adopted maximum use of virtual tools, most notably to close Critical Design Review in March 2020 and conduct a modification readiness review in April 2020.” As for the tanker, $551 million in cost increases stem from a deal reached between the Air Force and Boeing requiring the company to fix the complicated camera system used when refueling other aircraft. Most of the remaining $276 million is the result of coronavirus-related factory closures in Washington state where the tanker is built, and a “cost shift” resulting from slowing production of other commercial manufacturing. “I do believe that that program now is exactly where it needs to be,” Calhoun said of the KC-46. “We're going to finish well. Importantly our customer is going to feel like we have finished well and we've delivered a product that is second to none. I do believe that even the tanker future is significantly brighter than the one we've experienced up until now.” Calhoun also touted the company's development work. Although he did not mention any projects by name, Boeing is in the early stages of testing two new aircraft — the T-7A pilot training jet and MQ-25 refueling drone. “Our development programs at the early stages are all looking quite good. We're really not off plan on anything and usually by now we have a snip that we might be. I feel pretty good about the risk profile of our defense business despite the difficulties that we've attempted to overcome in just the last couple of years.” The same can't be said of the company's commercial airliner and aircraft repair businesses. Boeing is planning to cut 10 percent of its 160,000 employees through voluntary layoffs, attrition and involuntary layoffs. The coronavirus has driven a substantial blow to the storied 104-year-old aerospace and defense company, which had already been reeling from the fallout of deadly 737 Max crashes in October 2018 and March 2019. Passenger air travel has fallen to record lows prompting airlines to cancel flights, ground aircraft, and defer buying new planes. Boeing in late March temporarily stopped making commercial and military aircraft — including the tanker and the Navy's P-8 submarine hunter — in the Seattle-area, a COVID-19 hotbed. It also shut down its military assembly lines in Philadelphia for the Chinook and MH-139 Grey Wolf helicopters, and the tilt-rotor Osprey. Those factories have since reopened. A shuttered 787 Dreamliner factory in Charleston, South Carolina, is expected to reopen next week. Now all eyes — including at the Pentagon — are watching to see how Boeing manages tens of thousands of employees on its complex assembly lines with new social distancing procedures in place. If successful, the model could become a blueprint for other U.S. manufacturers. “They have allowed me to share their practices more broadly with industry to make sure that anything that is working for them to either be safer or get back to work, that that's something that can be shared with all,” Will Roper, head of Air Force acquisition, said Wednesday. Boeing began the year with hopes of fixing its troubled 737 Max and restoring public confidence in the world's largest planemaker. Unable to deliver the unflyable Max to the airlines, it stopped building them in early January as it began running out of places to park them. Photos showed planes carefully aligned next to one another on tarmacs and even in employee parking lots. There's still no formal timetable for getting the Max flying again, although executives are hopeful regulators will approve a number of fixes in the coming months and that it can begin delivering 737 Max aircraft to airlines in the third quarter. https://www.defenseone.com/business/2020/04/boeing-defense-surpass-commercial-side-first-time-more-decade/165020/

  • BAE Systems to play a key role in the delivery of AUKUS submarines

    March 14, 2023 | International, Naval

    BAE Systems to play a key role in the delivery of AUKUS submarines

    The three nations will deliver a trilaterally developed submarine, based on the UK?s next generation design, incorporating technology from all three nations

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