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October 29, 2020 | International, Land

Boeing has another overrun on the KC-46, but its CEO says there’s reason for hope

 

WASHINGTON — Boeing reported another $67 million charge on the KC-46 tanker program in third-quarter earnings disclosed Oct. 28, capping off a difficult quarter defined by continued hardships on its commercial side.

The increase in KC-46 costs was “due to continued COVID-19 disruptions and productivity inefficiencies,” Boeing's chief financial officer, Greg Smith, told investors during an earnings call.

However, Boeing CEO Dave Calhoun expressed confidence that the program would turn the corner in 2021 and become profitable for the company.

“The tanker has been a drag on us for three or four years in every way you can think of with respect to investors,” he said. “But we are continuing to clear the hurdle with our customers with respect to its performance in their fleet and their need for that tanker.

"That whole relationship, I believe, will begin to transition next year, and opposed to being a drag on our franchise — which it's been — I believe it will become a strength in our franchise.”

Previous charges on the KC-46 program amount to about $4.7 billion — almost equal to the $4.9 billion sum of the company's firm fixed-price contract with the U.S. Air Force, which it signed in 2011.

In July, a $151 million charge was attributed to the decline in commercial plane production driven by the COVID-19 pandemic. That slowdown has made it more expensive to produce commercial derivative planes like the KC-46, which is based on the Boeing 767 and made on the same production line in Everett, Washington.

Overall, defense revenues slightly decreased to $6.8 billion “primarily due to derivative aircraft award timing,” the company said in a news release. But that impact paled in comparison to Boeing's commercial business, where revenues dropped from $8.2 billion in 2019 to $3.6 billion in 2020.

As a result of those continued difficulties, the company plans to lay off an additional 7,000 workers by the end of 2021, Calhoun announced. At that point, Boeing's workforce will have been cut by almost 20 percent, down from 161,000 earlier this year to about 130,000 employees.

Smith characterized 2020 has a “year of transition” for defense programs like the MQ-25, T-7 trainer and the Air Force One replacement, which are in development. Once those programs move into production, Boeing expects to see “modest growth,” he said.

But Calhoun added that global defense spending is unlikely to greatly increase in the coming years, meaning that growth in Boeing's defense portfolio will be limited.

“In fact, we believe there will be pressure on defense spending as a result of all the COVID-related spending that of course governments around the world have been experiencing,” he said. “I don't think we're looking at that world through rose-colored glasses. I expect real pressure on that market.”

https://www.defensenews.com/industry/2020/10/28/boeing-has-another-overrun-on-the-kc-46-but-its-ceo-says-theres-some-reason-for-hope/

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  • Contract Awards by US Department of Defense - November 8, 2018

    November 9, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - November 8, 2018

    AIR FORCE Ball Aerospace & Technologies Corp., Boulder, Colorado, has been awarded a $255,418,494 firm-fixed-price contract modification (P00008) to previously awarded contract FA8810-18-C-0002 for the Weather System Follow-on Microwave. This contract modification provides for the exercise of an option for development and fabrication of the Weather System Follow-on Microwave Space Vehicle 1. Work will be performed in Boulder, Colorado, and is expected to be completed by Jan. 15, 2023. Fiscal 2018 research, development, test and evaluation funds are being obligated at the time of award. The total cumulative face value of the contract is $349,552,413. The Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. Crew Training International Inc., Memphis, Tennessee, has been awarded a $241,410,854 firm-fixed-price contract for the MQ-9 Contract Aircrew Training and Courseware Development training program. Work will be performed at Creech Air Force Base, Nevada; Holloman AFB, New Mexico; March Air Reserve Base, California; Hancock Field Air National Guard Base, New York, and other locations that may be required in the future in accordance with the performance work statement. Work is expected to be completed by Sept. 30, 2023. This award is a result of a competitive acquisition and eight offers were received. Fiscal 2019 operations and maintenance funds in the amount of $1,006,536 are being obligated at time of award for the phase-in period. Acquisition Management and Integration Center, Join Base Langley-Eustis, Virginia, is the contracting activity (FA4890-19-C-0003). (Awarded Nov. 7, 2018) UNKS Construction, Las Vegas, Nevada (FA4686-19-D-A001); Trinity North Star Construction JV, Plumas Lake, California (FA4686-19-D-A002); Hesperia Construction Co., Pleasanton, California (FA4686-19-D-A003); Utility Construction, Mesa, Arizona (FA4686-19-D-A004); Atwood Hay Inc., Beale Air Force Base, California (FA4686-19-D-A005); Synergy Electric Co. Inc., Santee, California (FA4686-19-D-A006); Tri-Technic Inc., Sonora, California (FA4686-19-D-A007); and Nomlaki Technologies, Yuba City, California (FA4686-19-D-A008), have been awarded a not-to-exceed $93,000,000 firm-fixed-price, multiple-award, electric-construction, indefinite-delivery/indefinite-quantity contract. Task orders will provide the execution of a broad range of projects, including, but not limited to, construction, repair, replacement and installation of various electrical distribution components. Work will be performed at Beale AFB, California, and is expected to be completed November 8, 2023. This award is the result of a competitive acquisition and 10 offers were received. Fiscal 2019 operations and maintenance funds in the amount of $16,000 ($2,000 for each awardee) are being obligated at the time of award. The 9th Contracting Squadron, Beale AFB, California, is the contracting activity. ARMY Colt's Manufacturing Company LLC, West Hartford, Connecticut, was awarded an $88,607,109 modification (P00008) to contract W15QKN-15-D-0102 for M4 and M4A1 carbines. Work will be performed in West Hartford, Connecticut, with an estimated completion date of Sept. 25, 2020. Fiscal 2019 and 2020 operations and maintenance, Army funds in the amount of $88,607,109 were obligated at the time of the award. U.S. Army Contracting Command, New Jersey, is the contracting activity. FN America LLC, Columbia, South Carolina, was awarded an $88,607,109 modification (P00009) to contract W15QKN-15-D-0072 for M4 and M4A1 carbines. Work will be performed in Columbia, South Carolina, with an estimated completion date of Sept. 25, 2020. Fiscal 2019 and 2020 operations and maintenance, Army funds in the amount of $88,607,709 were obligated at the time of the award. U.S. Army Contracting Command, New Jersey, is the contracting activity. Deloitte & Touche LLP, Arlington, Virginia, was awarded an $18,056,941 firm-fixed-price contract to provide a cyberspace analytics capability. Twenty-eight bids were solicited with four received. Work will be performed in Arlington, Virginia, with an estimated completion date of Nov. 7, 2023. Fiscal 2019 research, development, test and evaluation funds in the amount of $1,250,000 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-19-C-0004). Parsons Government Services Inc., Pasadena, California, was awarded a $15,837,195 firm-fixed-price contract to provide Defensive Cyberspace Operations Mission Planning program. Nineteen bids were solicited with seven received. Work will be performed in Centerville, Virginia, with an estimated completion date of Nov. 7, 2019. Fiscal 2019 research, development, test and evaluation funds in the amount of $1,000,000 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-19-C-0005). Great Lakes Dredge and Dock Co. LLC, Oak Brook, Illinois, was awarded a $10,779,850 firm-fixed-price contract for maintenance dredging. Bids were solicited via the internet with three received. Work will be performed in Mayport, Florida, with an estimated completion date of May 30, 2019. Fiscal 2019 other funds in the amount of $10,779,850 were obligated at the time of the award. U.S. Army Corps of Engineers, Jacksonville, Florida, is the contracting activity (W912EP-19-C-0002). IronMountain Solutions Inc.,* Huntsville, Alabama, was awarded a $9,000,081 Foreign Military Sales (Brazil, Egypt, Jordan, Mexico, Saudi Arabia, Taiwan, Slovakia, Sweden, Tunisia, Thailand and United Arab Emirates) modification (000024) to contract W31P4Q-17-A-0001 for support services for non-AMRDEC technical support for the Utility Helicopter Project Office. Bids were solicited via the internet with three bids received. Work will be performed in Huntsville, Alabama, with an estimated completion date of May 14, 2019. Fiscal 2018 foreign military sales; research, development, test and evaluation; and other procurement, Army funds in the amount of $9,000,081 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Longbow LLC, Orlando, Florida, was awarded an $8,973,759 modification (P00073) to contract W31P4Q-16-C-0035 for laser and longbow HELLFIRE engineering services. Work will be performed in Orlando and Ocala, Florida, with an estimated completion date of Nov. 7, 2019. Fiscal 2018 other procurement, Army funds in the amount of $8,973,759 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. MISSILE DEFENSE AGENCY Raytheon Missile Systems Co., Tucson, Arizona, is being awarded a $74,847,815 sole-source, cost-plus-incentive-fee modification (P00049) to contract HQ0276-15-C-0003. This modification award is for the execution of the Guidance Electronics Unit (GEU) Phase III procurement under the Standard Missile-3 (SM-3) Block IIA contract. Congress was notified of the Phase II procurement in December 2016. Under this contract, the contractor will continue efforts for qualification, test and integration of the enhanced GEU capability to the SM-3 Block IIA missile. The modification brings the total face value of the SM-3 BLK IIA contract to $1,192,183,647 from $1,117,335,832. The work will be performed in Tucson, Arizona, with an expected Phase III completion date of Sept. 30, 2020. The performance period is from Oct. 1, 2018, through Sept. 30, 2020. Fiscal 2018 research, development, test and evaluation funds in the amount of $1,000,000 will be obligated at the time of award. The Missile Defense Agency, Dahlgren, Virginia, is the contracting activity (HQ0276-15-C-0003). DEFENSE LOGISTICS AGENCY General Dynamics Land Systems Inc., Sterling Heights, Michigan, has been awarded a maximum $12,243,227 firm-fixed-price contract for tank periscope head assemblies with storage containers for the M1A1 Abrams tank. This is a one-year base contract with one 180-day option period being exercised at time of award. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. Locations of performance are South Carolina and Michigan, with a Dec. 15, 2022, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2022 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-18-C-0317). Knox County Association for Retarded Citizens,** Vincennes, Indiana, has been awarded a $8,999,635 modification (P0002) exercising the first option period of a one-year base contract (SPE1C1-18-D-N024) with two one-year option periods for undershirts. This is a firm-fixed-price contract. Location of performance is Indiana, with a Nov. 12, 2019, performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. Central Power Systems & Services Inc.,* Liberty, Missouri, has been awarded a maximum $7,240,000 firm-fixed-price contract for diesel engines. This is a three-year contract with no option periods. This was an acquisition permitting other than full and open competition for manufacturer parts with two responses received, using justification 10 U.S. Code 2304(c)(1), as stated in Federal Acquisition Regulation 6.302-1. Location of performance is Missouri, with a Nov. 8, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2021 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-19-D-0012). NAVY DRS Laurel Technologies, Johnstown, Pennsylvania, is awarded $8,608,626 for firm-fixed-price delivery order N0002419F5601 under previously-awarded contract N00024-15-D-5201 for 18 Technical Insertion (TI) 16 Common Processing System (CPS) water-cooled core computing system production cabinets and six TI-16 CPS water-cooled advanced storage area network production cabinets. The CPS provides the computer processing and memory, data storage and extraction and input/output interfaces to support host software applications of Navy combat systems. This delivery order involves foreign military sales to the Republic of Korea. Work will be performed in Johnstown, Pennsylvania, and is expected to be completed by December 2019. Foreign military sales funding in the amount of $8,608,626 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. *Small business **Mandatory source https://dod.defense.gov/News/Contracts/Contract-View/Article/1686733/source/GovDelivery/

  • DARPA program blending robots in the squad to find and destroy threats

    December 31, 2018 | International, C4ISR

    DARPA program blending robots in the squad to find and destroy threats

    By: Todd South The agency that invented stealth technology, the internet, and the M16 has its sights focused on enhancing how the infantry squad works on the battlefield with robots, and advanced targeting and sensing gear. The Squad X program saw its first week-long series of tests at Twentynine Palms, California, this past year. At that event, Marine squads used air and ground vehicles to detect physical, electromagnetic and cyber threats, according to the Defense Advanced Research Projects Agency. The agency's program manager for their Tactical Technology Office, Army Lt. Col. Phil Root said that the first experiment in the program demonstrated “the ability for the squad to communicate and collaborate, even while ‘dancing on the edge of connectivity.'” Squad X Core Technologies program, or SXCT, is an ongoing effort to develop novel technologies that would “extend squad awareness and engagement capabilities without imposing physical and cognitive burdens,” according to a DARPA press release. They aim to speed the development of new, lightweight, integrated systems that provide infantry squads awareness, adaptability and flexibility in complex environments. That effort is to enable dismounted soldiers and Marines to more intuitively understand and control their complex mission environments, according to Root. Those efforts fit within wider work being done by the Close Combat Lethality Task Force, a group set up this past year to enhance close combat capabilities for infantry, special operations, scouts and some engineers. Root is also the program manager for Squad X Core Technologies. He laid out four key technical areas that the program is exploring: Precision Engagement: Precisely engage threats while maintaining compatibility with infantry weapon systems and without imposing weight or operational burdens that would negatively affect mission effectiveness. Capabilities of interest include distributed, non-line-of-sight targeting and guided munitions. Non-Kinetic Engagement: Disrupt enemy command and control, communications and use of drones. Capabilities of interest include disaggregated electronic surveillance and coordinated effects from distributed platforms. Squad Sensing: Detect potential threats at a squad-relevant operational pace. Capabilities of interest include multi-source data fusion and autonomous threat detection. Squad Autonomy: Increase squad members' real-time knowledge of their own and teammates' locations in GPS-denied environments using embedded unmanned air and ground systems. Capabilities of interest include robust collaboration between humans and unmanned systems. Some of those areas were previously explored in 2015 with DARPA's squad technology integration efforts. The tools used to detect threats in the experiments were newer, lighter, versions of previous capabilities. But the release did not provide detailed examples of the gear that Marines tested. “Each run, they learned a bit more on the systems and how they could support the operation,” said Root. “By the end, they were using the unmanned ground and aerial systems to maximize the squad's combat power and allow a squad to complete a mission that normally would take a platoon to execute.” The August event at the Marine Corps Air Ground Combat Center was one of a number of experiments in communications, cyber, EW, loitering munitions and targeting that was conducted over the past year. Both Lockheed Martin Missiles and Fire Control, and CACI's BIT Systems are working for ways to enhance infantry capabilities using manned-unmanned teaming, according to the release. Marines testing Lockheed Martin's Augmented Spectral Situational Awareness, and Unaided Localization for Transformative Squads, known as the ASSAULTS system, used autonomous robots with sensor systems to detect enemy locations, allowing the Marines to target the enemy with a precision 40mm grenade before the enemy could detect their movement, according to the release. Small units using CACI's BITS Electronic Attack Module were able to detect, locate, and attack specific threats in the radio frequency and cyber domains. This is all part of larger efforts to put more detection and fires at lower echelons in both the Army and Marine Corps. https://www.militarytimes.com/news/your-army/2018/12/30/darpa-program-blending-robots-in-the-squad-to-find-and-destroy-threats

  • Czech Republic wants to piggyback on German Leopard 2A8 tank buy

    December 20, 2023 | International, Land

    Czech Republic wants to piggyback on German Leopard 2A8 tank buy

    A joint order with Berlin should yield better conditions, like prices and delivery schedule, according to the Czech defense minister.

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