April 19, 2021 | International, Aerospace, Naval, Land, C4ISR, Security
Contracts for April 16, 2021
Today
October 1, 2018 | International, Aerospace
By: Valerie Insinna
WASHINGTON — Boeing is the biggest aircraft manufacturer in the world, but the losses of the joint strike fighter program and Air Force's long range strike bomber still weigh heavily on the company's defense unit, and had prompted some in industry to wonder if the company's days of making cutting edge combat aircraft were numbered.
Conventional wisdom held that Boeing needed to win either the Navy's unmanned tanker drone or the Air Force's next-generation trainer aircraft contract to keep its St. Louis, Mo.-based facility building tactical aircraft into the 2030s. a contract for the Air Force's Huey replacement helicopter was seen as out of reach as the service had formerly expressed a preference for sole-sourcing Black Hawks.
But in a matter of weeks, Boeing racked up all three contracts, shocking the defense establishment.
First came the MQ-25 Stingray award for the Navy's unmanned tanker drone on Aug. 30. An initial $805 million contract covers the design, development, fabrication, test and delivery of four Stingray drones, but Navy acquisition boss James Geurts said the entire program could be worth up to $13 billion for 72 aircraft.
“It is a big win on a high-visibility competition/program and gives Boeing a franchise unmanned program,” wrote Roman Schweizer of Cowen Washington Research Group on Sept. 4.
Boeing defeated Lockheed Martin and General Atomics to win the program — and that victory allows Boeing to cement its own status as the Navy's premier manufacturer of fixed-wing aircraft.
“A Lockheed Martin win would have cemented its position as the builder of ‘next-gen' naval aviation platforms while Boeing would have been relegated to manufacturing fleet workhorses,” Schweizer said in his assessment of the award. “General Atomics would have a been a one-off, but we thought they would been a favorite for a low-cost, low-risk design.”
Then on Monday, Boeing won another big competition — this time worth up to $2.38 billion — for the Air Force's UH-1N replacement helicopter. Boeing and Leonardo were immediately obligated $375 million for the initial four MH-139 helicopters, which will be built at Leonardo's commercial AW-139 production plant in Philadelphia.
It was huge news for Leonardo, a large Italian defense contractor that had been attempting to break into the U.S. market with a major program for about a decade.
But for Boeing, it was still a relatively small aircraft procurement program, with Byron Callan, an analyst with Capital Alpha Partners, writing that there were probably few opportunities for Boeing-Leonardo to sell the MH-139 to other users in the U.S. military.
However, Boeing on Thursday won the major opportunity it had been seeking: the Air Force's T-X program. Boeing's clean sheet design beat out Lockheed and Leonardo to win a contract worth up to $9.2 billion.
It's likely the actual program will be worth considerably less — Boeing would be obligated a total of $9.2 billion over time if the Air Force decides to execute all options on the contract for 475 training jets, and the services' program of record sits at 350 jets.
But its importance to Boeing extends past the award's total contract value.
Winning T-X was “possibly critical” for Boeing's St. Louis plant and for its defense business to remain a competitive player in tactical aircraft design, said Callan.
“The MQ-25 win helps sustain production at that facility, which now builds F/A-18s and F-15s,” he wrote after the Sept. 27 announcement. “However, the F/A-18 and F-15 lines may end by the mid-2020s. T-X enables Boeing to keep that facility humming and therefore in the hunt for Penetrating Counter Air and other new military aircraft programs.”
Analysts like Callan and Schweizer had speculated that Boeing would bid very aggressively to try to win the contract, but the question was whether the company could possibly offer a new purpose-built design at a significantly lower price point than competitors Lockheed Martin and Leonardo, which both proposed aircraft designs already in production and use by foreign militaries.
It appears Boeing may have been able to do just that. Richard Aboulafia told Defense News in 2017 that the Lockheed and Leonardo trainers came with a price tag of about $25 million, although both companies were expected to bid lower than that to be competitive.
Meanwhile, Jim McAleese of McAleese & Associates pegged the unit cost of Boeing's T-X at an “eye-watering” $19 million, far below the Air Force's $45 million per plane expectation.
That low price “establishes an extremely high burden for disappointed offerors of Lockheed or Leonardo” to launch a successful protest with the Government Accountability Office, he stated in a Sept. 28 email, although Lockheed and Leonardo could potentially argue that the Air Force's cost and schedule risk assessments are too optimistic, given that Boeing offered a new airframe.
Callan also pointed out that the MQ-25 and T-X wins could be advantageous to Boeing's commercial business. In the past, the defense sector has developed new materials that have later been adapted for use by the airline industry. With Boeing acquiring autonomy-focused businesses like Liquid Robotics and Aurora while investing in startups through its HorizonX organization, it is possible advances in military unmanned tech could give way to autonomous commercial cargo planes or other future concepts.
April 19, 2021 | International, Aerospace, Naval, Land, C4ISR, Security
Today
July 29, 2020 | International, C4ISR
July 29, 2020 - BAE Systems Australia has welcomed an additional two year, AU$30 million contract extension to ongoing sustainment of the Collins Class periscopes. The original five year contract began in 2015 and encompasses engineering, program management, supply support and highly specialised maintenance services. During this two year extension period, BAE Systems will continue to maintain Search and Attack periscopes and undertake the necessary updates to the periscope systems. BAE Systems has been maintaining and updating the Collins Class submarine periscopes for more than three decades, developing an important sovereign capability. The company began supporting the Collins Class submarines periscopes in 1988 at the start of the periscope build program. The company has continued to develop this sovereign capability through the provision of maintenance, repair and update services in two states. Periscope work is undertaken by 34 specialist employees working in purpose built facilities at Mawson Lakes South Australia and at HMAS Stirling Naval Base, in Western Australia. The largest update project undertaken during this time was the transition from analogue to digital periscopes which are now also transitioning into service. BAE Systems Australia Managing Director Defence Delivery Andrew Gresham said: “Now, more than ever, Defence programs will have an important role in Australia's post-COVID economic recovery. “We began supporting the Collins-class submarine periscope systems with an 11-year manufacturing and build program for attack and search periscope systems “Some three decades later, we continue to build and grow our experience in maintaining and updating this critical piece of defence equipment. During this time we have also supported the development of new capabilities in our local supply chain. “Defence projects are high value, create and sustain new industrial capabilities, require leading edge technologies and can run over decades which is why they are so important to our nation's economy.” Contact Default Profile ImageKaye Noske Media Manager BAE Systems Australia Mobile +61 (0) 401 121 444 View source version on BAE Systems Australia: https://www.baesystems.com/en-aus/article/bae-systems-australia-welcomes--30-million-periscope-contract
September 5, 2018 | International, Aerospace
Neha Dasgupta NEW DELHI (Reuters) - Lockheed Martin (LMT.N) will build wings for its F-16 combat plane in India with its local partner, Tata Advanced Systems Limited, an executive at the U.S. company said on Tuesday. Lockheed is bidding for a contract - estimated at more than $15 billion - to supply the Indian air force with 114 combat planes, which must be all manufactured locally under Prime Minister Narendra Modi's flagship Make in India program. However, Vivek Lall, vice president of strategy and business development at Lockheed, said the proposed Indian production of the F-16 wings would not be contingent upon the company winning the order for the planes. “Producing F-16 wings in India will strengthen Lockheed Martin' strategic partnership with Tata and support Make in India,” the company said in a statement. Modi has been pushing for local manufacturing that will provide jobs and also end the military's dependence on imports. Lockheed's announcement came just days ahead of top level talks between the United States and India aimed at expanding defense ties. U.S. Secretary of State Mike Pompeo and Defense Secretary Jim Mattis will meet with Indian Foreign Minister Sushma Swaraj and Defence Minister Nirmala Sitharaman. Boeing (BA.N) has pitched its F/A-18 Super Hornet for the Indian contract as well as Sweden's Saab with its Gripen fighter. France's Dassault (AVMD.PA) Systemes SE's Rafale, the Eurofighter Typhoon and Russian aircraft are also in the fray. Lall said Lockheed had offered to make India its sole F-16 production facility that would supply the Indian military but also other countries. “If India buys the F-16 then it becomes the center of manufacturing for the global market,” he said. Lall said the company planned to begin production of the F-16 wings in the southern Indian city of Hyderabad from 2020. He said these were being produced at a facility in Israel and would not impact any jobs in the United States. The Israeli center will continue to be involved in other production, he said. “All F-16 wings globally are to be built in the Hyderabad facility,” he said. https://www.reuters.com/article/us-india-usa-lockheedmartin/lockheed-to-make-wings-for-f-16-jet-in-india-with-partner-tata-idUSKCN1LK17T