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October 4, 2018 | International, Aerospace

Boeing Wins $63M Navy Deal for F/A & E/A-18 Aircraft Support

By Zacks Equity Research,

The Boeing Company BA recently won a $62.7-million contract for providing inspections, Inner Wing Panel (IWP) modifications, and repairs for the F/A-18 E/F and EA-18G aircraft. Such designated efforts are expected to restore aircraft and IWP service life projections to new design specifications.

Work related to the deal will be majorly carried out in Jacksonville, FL; St. Louis, MI; and Lemoore, CA. The entire task related to the deal is expected to get completed in September 2019. The deal was awarded by the Naval Air Systems Command, Patuxent River, Maryland.

A Brief Note on F/A-18 and E/A-18

Boeing's F/A-18 Block III Super Hornet is a twin-engine, supersonic, all weather multirole fighter jet. The U.S. Navy's tactical and air superiority aircraft is capable of performing virtually every mission in the tactical spectrum, including air superiority, day/night strike with precision-guided weapons, fighter escort, close air support, suppression of enemy air defenses, maritime strike, reconnaissance, forward air control and tanker missions.

Whereas, the EA-18G Growler is the most advanced airborne electronic attack (AEA) platform, which operates from either an aircraft carrier or from land-bases.

What's Favoring Boeing?

Boeing, being one of the major players in the defense business, stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog. Furthermore, the company's expertise lies in programs related to wide variety of aircraft components, repairs and modification works.

Considering Boeing's combat-proven aerospace programs and associated services along with the rapidly growing need for military aircraft in light of the enhancing geopolitical uncertainties worldwide, the company witnesses a solid inflow of orders from Pentagon. These contract wins, in turn, boost top-line growth for the company's defense business segment.

Evidently, in second-quarter 2018, revenues at the Boeing Defense, Space & Security (BDS) segment, which manufactures military jets like F/A-18, EA-18 Growler and its related components, increased 9% year over year to $5.59 billion. In line with this, we may expect the latest contract win to help this unit deliver similar top-line performance, in coming quarters.

Meanwhile, toward the end of June 2018, the U.S. Senate approved the fiscal 2019 defense budget that provisions for major war fighting investments worth $21.7 billion for aircraft. Boeing, being the largest aircraft manufacturer in the United States, will surely be a significant beneficiary from the budget, which further includes an investment plan of $2 billion for procuring 24 F/A-18E/F aircraft. Such inclusions reflect solid growth prospects for the BDS segment, which, in turn, are likely to boost Boeing's profit margin.

Price Movement

Boeing's stock has gained 53.4% in the past 12 months compared with the industry 's growth of 25.1%. The outperformance was primarily led by the robust worldwide demand for its commercial aircraft and military jets.

Full article: https://www.nasdaq.com/article/boeing-wins-63m-navy-deal-for-fa-ea-18-aircraft-support-cm1032450

On the same subject

  • Military/Commercial Avionics Outlook Strong, Deloitte Says

    December 5, 2019 | International, Aerospace

    Military/Commercial Avionics Outlook Strong, Deloitte Says

    By Frank Wolfe The military and commercial outlook for avionics sales is strong, according to the author of a new Deloitte report, the 2020 Global Aerospace and Defense Industry Outlook. "The outlook for the aerospace avionics market is positive with good growth expected over the next few years, primarily due to the strong aircraft order book," Robin Lineberger, the leader of Deloitte global aerospace and defense, wrote in an email to Avionics International. "Moreover, all the major global militaries are increasing their spending on acquiring advanced military aircraft, further driving the growth for avionics," Lineberger wrote. Such aircraft include the Japanese F-3 twin-engine stealth fighter by Mitsubishi to replace the country's single-engine Mitsubishi F-2 jets and to complement the country's Lockheed Martin F-35s; the European Future Combat Air System (FCAS); and the United States Air Force's sixth generation fighter. In June at the Paris Air Show, Dassault Aviation unveiled an FCAS mock up, as government and company officials signed an FCAS Industry Agreement on Demonstrator Programs. The latter accord covers the main components of FCAS: a new generation, manned fighter; support "remote carrier" drones; and an Air Combat Cloud to integrate sensors. FCAS is to replace Dassault's Rafale fighter and the Airbus/BAE Systems/Leonardo-built Eurofighter. During the unveiling of the mock up, French President Emmanuel Macron said that he favors German-French-Spanish cooperation on FCAS with the British, which are developing their own advanced fighter through the BAE Systems Tempest program. In early October, the Air Force officially stood up a new program executive office to lead Digital Century Series, which will look to rapidly develop and field new aircraft beginning with the service's sixth-generation fighter. Last week, Will Roper, the Air Force's service acquisition executive, said that the new Digital Century Series initiative will look to improve integration of emerging technologies by buying smaller quantities of new fighter jets, potentially from multiple companies at a time. “Demand for military equipment is on the rise as governments across the globe focus on military modernization, given increasing global security concerns,” according to the new Deloitte report. “The uncertainty and sustained complexity of the international security environment worldwide is likely to boost global defense spending over the next five years.” In 2020, global defense spending will reach around $1.9 trillion, driven mainly by the U.S. but also countries such as China, Russia and India, the 14-page report says. It adds that NATO members in Europe, under pressure from the U.S., are also increasing defense spending to hit a target of 2 percent of GDP, and tensions in the Middle East are also driving demand for defense equipment. By 2023, global defense spending is expected to be $2.1 trillion, Deloitte said. Commercial and general aviation avionics sales are also expected to grow. "Demand for new and advanced flight capabilities from airlines and small general aviation aircraft owners to make flight operations more efficient and safer will continue to drive demand for commercial avionics," Lineberger wrote in his email to Avionics International. "Moreover, significant investments will be made on avionics because of government-mandated upgrades, for instance, the mandates for Automatic Dependent Surveillance/Broadcast capability (ADS-B), Head-Up Displays (HUD) and Controller/Pilot Datalink Communications equipment (CPDLC). However, there are some challenges which include longer product development cycle that leads to increased development costs." Urban air mobility, electric propulsion and fully automated flight decks are technology trends to watch in years ahead, according to the Deloitte report. "Although commercial aircraft manufacturers are increasingly relying on automated flight controls, including automated cockpits, the commercial aerospace sector is aiming to transition to fully automated flight decks," Lineberger wrote in his email. "Such a transition will likely reduce the number of crew members in the cockpit, resulting in lower costs for airlines. Moreover, automated flight decks would also address the growing pilot shortage issue currently faced by the aviation industry, which will likely be accentuated in the future as the commercial aircraft fleet continues to grow." https://www.aviationtoday.com/2019/12/04/military-commercial-avionics-outlook-strong-deloitte-says/

  • L'US Navy confirme le concept de porte-avions léger

    April 14, 2022 | International, Naval

    L'US Navy confirme le concept de porte-avions léger

    L'US Navy s'est entrainée pour la première fois à accueillir un nombre record de F-35B sur l'un de ses navires de soutien aux opérations de débarquement. L'US Navy confirme donc qu'elle peut compter le cas échéant sur deux porte-avions légers au sein de sa flotte de bâtiments de surface.

  • Contract Awards by US Department of Defense – September 21, 2020

    September 22, 2020 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

    Contract Awards by US Department of Defense – September 21, 2020

    NAVY Heffler Contracting Group,* El Cajon, California (N62473-20-D-1122); HHI Corp.,* Ogden, Utah (N62473-20-D-1123); I.E.-Pacific Inc.,* Escondido, California (N62473-20-D-1124); Peter Vander Werff Construction Inc.,* El Cajon, California (N62473-20-D-1125); and R. A. Burch Construction Co., Inc., Ramona, California (N62473-20-D-1126), are each being awarded an indefinite-delivery/indefinite-quantity multiple award construction contract for new construction, renovation and repair of general building construction at various government installations located in California, Arizona, Nevada, Utah, Colorado and New Mexico. The maximum dollar value including the base period and one option period for all five contracts combined is $495,000,000. The work to be performed provides for new construction, renovation and repair of administration buildings, armories, auditoriums, bachelor enlisted quarters, child care centers, fire stations, gymnasiums, hangars, hospitals, maintenance/repair facilities, warehouses and other similar facilities. The initial task orders will be to issue minimum guarantees in the amount of $5,000 for all five offerors. All work on these contracts will be performed at various government installations within the Naval Facilities Engineering Command (NAVFAC) Southwest area of responsibility including, but not limited to, California (90%); Arizona (6%); Nevada (1%); Utah (1%); Colorado (1%); and New Mexico (1%). The terms of the contracts are not to exceed 60 months, with an expected completion date of September 2025. Fiscal 2020 operations and maintenance (O&M) (Navy) contract funds in the amount of $25,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by military construction (Navy); O&M (Navy); O&M (Marine Corps); and Navy working capital funds. This contract was competitively procured as a small business set-aside procurement via the Navy Electronic Commerce Online website with 16 proposals received. These five contractors may compete for task orders under the terms and conditions of the awarded contracts. NAVFAC Southwest, San Diego, California, is the contracting activity. Huntington Ingalls Inc., Newport News, Virginia, is awarded a $351,810,277 cost-plus-fixed-fee modification to previously awarded contract N00024-18-C-4314 for the USS Boise (SSN 764) early production period that encompasses continued advance planning, execution services, production and availability preparations for the USS Boise engineered overhaul. This contract modification includes options, which if exercised, will bring the cumulative value of this action to $355,015,496. Work will be performed in Newport News, Virginia, and is expected to be completed by May 2023. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $351,810,277 will be obligated at time of award, of which, funds in the amount of $351,810,277 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Vertex Aerospace LLC, Madison, Mississippi, is awarded a $21,747,155 modification (P00014) to previously awarded firm-fixed-price, cost reimbursable, indefinite-delivery/indefinite-quantity contract N61340-17-D-0005. This modification exercises options to provide intermediate-level maintenance, repair and logistics support services to include labor, direct and indirect material for Chief of Naval Air Training aircraft. Additionally, this modification procures tooling and equipment required to support and maintain four aircraft intermediate maintenance departments and related support equipment. Work will be performed in Pensacola, Florida (47%); Corpus Christi, Texas (40%); Whiting Field, Florida (10%); and Meridian, Mississippi (3%), and is expected to be completed in September 2021. No funds are being obligated at time of award, funds will be obligated on individual orders as they are issued. The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity. USA Waste of California Inc., doing business as Waste Management, Los Angeles, California, is awarded a maximum amount of $21,658,159 indefinite-delivery/indefinite-quantity, firm-fixed-price contract for integrated solid waste management services at various Navy and Marine Corps installations within the San Diego metropolitan and San Diego County areas. The work to be performed provides for labor, supervision, management and materials to perform various integrated solid waste management service functions as follows: refuse and recycling collection and disposal services. An initial task order is being awarded at $2,317,525 for integrated solid waste management services at Naval Base, San Diego, California (45%); Marine Corps Air Station, Miramar, California (24%); Naval Base Point, Loma, California (24%); Marine Corps Recruit Depot, California (6%); Camp Michael, Monsoor, California (less than 1%); Remote Survival, Evasion, Resistance, and Escape Camp, Warner Springs, California (less than 1%); and Camp Morena, California (less than 1%). Work for this task order is expected to be completed by September 2021. The term of the contract is not to exceed 96 months with an expected completion date of September 2028. Fiscal 2021 operations and maintenance Navy (O&M, N); operations and maintenance Defense Health Program (O&M, DHP); and Navy working capital funds (NWCF) in the amount of $2,317,525 will be obligated at the beginning of the fiscal year and will expire at the end of that fiscal year. Future task orders will be primarily funded by O&M, N; O&M, DHP; and NWCF contract funds. This contract was competitively procured via the Federal Business Opportunities website with two proposals received. Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-20-D-1128). Management Services Group Inc., doing business as Global Technical Systems,* Virginia Beach, Virginia, is awarded a $21,580,941 firm-fixed-priced modification to previously awarded contract N63394-19-C-0008 to exercise options for the production of ordnance alteration kits, on-board allowance spares and installation and checkout kits for Technical Insertion 12H of the Common Processing System. Work will be performed in Virginia Beach, Virginia, and is expected to be completed by April 2021. Fiscal 2019 other procurement (Navy); fiscal 2019 procurement (defense-wide) funding; and fiscal 2019 research, development, test and evaluation (Navy) funding in the amount of $21,580,941 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Surface Warfare Center, Port Hueneme Division, Port Hueneme, California, is the contracting activity. Lockheed Martin Corp., Marietta, Georgia, is awarded a $12,772,525 modification (P00012) to previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contract N00019-19-D-0014. This modification exercises options to procure consumable parts and material in support of the C/KC-130J aircraft for the Marine Corps, Marine Corps Reserves, Coast Guard and the government of Kuwait. Work will be performed in Marietta, Georgia (66.5%); Palmdale, California (15.5%); Abdullah Al-Mubarak Air Base, Kuwait (2.5%); Iwakuni, Japan (2.5%); Miramar, California (2.5%); Cherry Point, North Carolina (2.5%); Elizabeth City, North Carolina (2.5%); Fort Worth, Texas (2.5%), Newburgh, New York (2.5%); and Greenville, South Carolina (0.5%), and is expected to be completed by December 2023. 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. Alexandra Construction Inc.,* Newton, Massachusetts, is awarded an $11,213,400 firm-fixed-price contract for the renovation of the communications building at Portsmouth Naval Shipyard, Kittery, Maine. The work to be performed will consist of a total interior and partial exterior renovation of Building 13, including abating hazardous materials; a new stair and elevator tower; upgrading the building's structural support system; restoring original window openings; providing offices, conference and break areas; providing accessibility via ramp and elevator; and completely overhauling the building's mechanical, electrical, data and fire protection systems. Work will be performed in Kittery, Maine, and is expected to be completed by November 2021. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $11,213,400 are obligated on this award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Contract Opportunities website with three proposals received. Naval Facilities Engineering Command Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-20-C-0071). L3Harris Technologies Inc., North Amityville, New York, is awarded a $7,363,788 firm-fixed-price contract that continues efforts associated with Small Business Innovation Research Phase III Topic Number 9895 titled “MIL-STD-1760A Compatible Multiple Smart Weapon Employment Mechanism.” This contract provides for the production and delivery of 1,168 umbilical cables and attaching hardware for use on the Bomb Rack Unit (BRU)-55. Work will be performed in Brighton, United Kingdom (79.13%); Franklin, Pennsylvania (10.51%); and Amityville, New York (10.36%), and is expected to be completed by May 2022. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $7,363,788 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to 10 U.S. Code 2304(c)(5). The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-20-C-0368). Delphinus Engineering Inc.,* Eddystone, Pennsylvania (N55236-18-D-0001); Q.E.D. Systems Inc.,* Virginia Beach, Virginia (N55236-18-D-0002); Epsilon Systems Solutions Inc.,* National City, California (N55236-18-D-0003); Tecnico Corp.,* Chesapeake, Virginia (N55236-18-D-0004); Southcoast Welding and Manufacturing LLC,* Chula Vista, California (N55236-18-D-0005); Bay City Marine Inc.,* National City, California (N55236-18-D-0006); Pacific Ship Repair and Fabrications Inc.,* San Diego, California (N55236-18-D-0007); and Miller Marine Inc.,* San Diego, California (N55236-18-D-0008), are each awarded firm-fixed-price contract modifications with a combined overall ceiling increase of $7,208,259 to exercise Option Year Three of their respective previously awarded indefinite-delivery/indefinite-quantity, multiple award contracts to provide depot level repairs, interior and exterior preservation, barge modernization upgrades, dockside and dry dock services for Navy barges. Work will be performed in San Diego, California, and is expected to be completed by October 2021. No funding is being obligated at time of award. Each contractor was awarded one contract and subsequently will compete for each delivery order when a requirement is identified. The Southwest Regional Maintenance Center, San Diego, California, is the contracting activity. AIR FORCE The MITRE Corp., Bedford, Massachusetts, has been awarded a $463,002,062 cost reimbursement option contract for support to the Air Force from MITRE as the administrator of the National Security Engineering Center Federally-Funded Research and Development Center. Work will be performed in Bedford, Massachusetts; McLean, Virginia; and various locations throughout the continental U.S. and outside the continental U.S., and is expected to be completed by Sept. 30, 2021. This award is the result of a sole-source acquisition. Foreign Military Sales funds in the amount of $158,100 are being obligated at the time of award. The Air Force Life Cycle Management Center, Hanscom Air Force Base, Massachusetts, is the contracting activity (FA8702-19-C-0001). L3Harris Technologies Inc., Colorado Springs, Colorado, has been awarded a $119,172,657 cost-plus-incentive-fee modification (P00007) to contract FA8823-20-C-0004 for the Ground-Based Electro Optical Deep Space Surveillance (GEODSS) System upgrade on Ground-Based Optical Sensor System (GBOSS) engineering and manufacturing development (EMD) pre-priced option. This modification provides for the exercise of an option for the GBOSS EMD Phase to complete the design for the integrated system; develop and/or modify software required to support the system; design and build new European and Pacific sites and add an additional sensor tower enclosure to the GEODSS White Sands Missile Range site; upgrade and/or acquire, integrate, test and field the 12 GEODSS Enhanced Technology sensor towers; and design, develop and/or acquire, integrate, test and field the three Advanced Technology Sensor towers. Work will be performed in Colorado Springs, Colorado, and is expected to be completed by June 27, 2024. Fiscal 2020 research, development, test and evaluation funds in the amount of $12,000,000 are being obligated at the time of award. Total cumulative face value of the contract is $218,167,008. The Space and Missile Systems Center Directorate of Contracting, Peterson Air Force Base, Colorado, is the contracting activity. PAR Government Systems Corp., Rome, New York, has been awarded an $11,972,009 cost-plus-fixed-fee contract for software deliverables. This contract provides for the research, design, development, assembly, integration, demonstration, experimentation, analysis, testing and further development of innovative technologies, concepts, architectures, capabilities and a concept of operations using the Air Force Research Laboratory (AFRL) Integrated Information Management System Cyber Technology Maturation Framework Form, Fit, and Function prototype environment and other relevant frameworks. Work will be performed in Rome, New York, and is expected to be completed by October 2025. This award is the result of a competitive acquisition and two offers were received. Fiscal 2020 research, development, test and evaluation funds in the amount of $190,000 are being obligated at the time of award. AFRL, Rome, New York, is the contracting activity (FA8750-20-C-1545). Rockwell Collins Inc., Cedar Rapids, Iowa, has been awarded an $8,714,641 cost-plus-fixed-fee contract for Software Programmable Agile Radio for Tactical Connected Ubiquitous Systems software/hardware system prototype. This contract provides for the communication challenges of multi-domain operation by combining the Software Programmable Agile Radio next program's true Software Defined Radio approach with low-cost, state-of-the-art, digital hardware and front-end modularity, to develop a low-cost, high-performance ground radio that supports multiple waveforms. Work will be performed in Cedar Rapids, Iowa, and is expected to be completed Sept. by 21, 2023. This award is the result of a competitive acquisition and two offers were received. Fiscal 2020 research, development, test and evaluation funds in the amount of $530,000 are being obligated at time of award. Air Force Research Laboratory, Rome, New York, is the contracting activity (FA8750-20-C-1542). DEFENSE LOGISTICS AGENCY Alliant Enterprises LLC,* Grand Rapids, Michigan, has been awarded a maximum $225,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for patient monitoring and capital equipment systems and accessories. This was a competitive acquisition with 50 offers received. This is a five-year base contract with one five-year option period. Location of performance is Michigan, with a Sept. 20, 2025, ordering period end 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-0012). ARMY BAE Systems Ordnance Systems, Kingsport, Tennessee, was awarded a $17,470,393 modification (P00727) to contract DAAA09-98-E-0006 to complete the modernization of existing neutralization basins and upgrade clarifiers at the industrial wastewater treatment facility and complete facility maintenance at Holston Army Ammunition Plant. Work will be performed in Kingsport, Tennessee, with an estimated completion date of March 31, 2023. Fiscal 2020 procurement of ammunition (Army) funds in the amount of $17,470,393 were obligated at the time of the award. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. BAE Systems Ordnance System, Kingsport, Tennessee, was awarded a $17,211,588 modification (P00716) to contract DAAA09-98-E-0006 to complete the design of the Filter Wash Facility Building E at Holston Army Ammunition Plant. Work will be performed in Kingsport, Tennessee, with an estimated completion date of Oct. 31, 2021. Fiscal 2020 procurement of ammunition (Army) funds in the amount of $17,211,588 were obligated at the time of the award. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2355497/source/GovDelivery/

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