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.
March 8, 2021 | International, Aerospace
As the Air Force pieces together its fiscal 2023 budget, due early next year, it must think about a murky future five years down the road.
June 9, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
By: Sebastian Sprenger COLOGNE, Germany — NATO Secretary General Jens Stoltenberg wants the alliance to take on a greater political role in world affairs and help nations in the Asia-Pacific region contend with China's rise. “Military strength is only part of the answer,” Stoltenberg said Monday in a speech during an online event organized by the Atlantic Council and the German Marshall Fund of the United States. “We also need to use NATO more politically.” He said alliance member should adopt a more global approach to security issues, unlike the Europe- and North America-centric tack that has often shaped the alliance's agenda. “This is not about a global presence, but a global approach,” he said. “As we look to 2030, we need to work even more closely with like-minded countries, like Australia, Japan, New Zealand and [South] Korea, to defend the global rules and institutions that have kept us safe for decades, to set norms and standards in space and cyberspace, on new technologies and global arms control, and ultimately to stand up for a world built on freedom and democracy, not on bullying and coercion.” Those words are a veiled description of what Western analysts believe is a policy of China blackmailing weaker nations in its orbit through economic and diplomatic pressure. As Stoltenberg put it, Beijing becoming militarily and economically stronger represents a “fundamental shifting" in the global balance of power in which the Western alliance should not be caught flat-footed. Stoltenberg repeatedly invoked NATO cohesion as an organizing principle for the alliance, imploring members to "resist the temptation of national solutions.” His comments came as the Trump administration is reportedly considering what critics have called just that: a partial U.S. troop reduction in Germany without consulting allies. The Pentagon previously portrayed its presence in Germany as a testament to America's commitment to Europe, especially following Russia's annexation of Crimea from Ukraine in 2014. The NATO chief dodged a question on the report, first made public by the Wall Street Journal, instead trumpeting the U.S. military's deepening involvement in Europe. Meanwhile, it is hard to evaluate the seriousness of the reported move, especially because U.S. lawmakers and leaders in Berlin were left in the dark. Some media outlets have speculated that a moment of anger by U.S. President Donald Trump about German Chancellor Angela Merkel prompted the idea, while Reuters cited an unnamed official saying that Gen. Mark Milley, the chairman of the Joint Chiefs of Staff, had worked on the issue for months. Retired Lt. Gen. Ben Hodges, a former commander of U.S. Army troops in Europe, told Defense News he finds it unlikely that senior military officials were onboard. “I don't believe that at all,” he said. “No way such a significant decision could be kept under wraps in Washington, D.C., for that long. Based on the conversations I've had the last four days, there's no doubt in my mind that this was a shock to all military leadership in Europe.” Hodges also criticized Polish officials for being eager to fill a potential void. “I would prefer that our Polish allies focus on the importance of the cohesion of the alliance versus immediately signaling that they'd be happy to host U.S. troops that might move from Germany,” he wrote in an email. “Poland is a great ally. But their security is best when we have a strong, unified alliance that is built around a strong USA-Germany relationship.” https://www.defensenews.com/global/europe/2020/06/08/nato-chief-seeks-to-forge-deeper-ties-in-chinas-neighborhood/
August 31, 2018 | International, Land
By: Neil Fotre The Additive Manufacturing Team at Marine Corps Systems Command and Marines from the I Marine Expeditionary Force operated the world's largest concrete 3D printer at the U.S. Army Engineer Research and Development Center in Champaign, Illinois, according to the Marine Corps. The combined force effort was used to 3D print a 500-square-foot barracks hut. “This exercise had never been done before," Additive Manufacturing's project officer Capt. Matthew Friedell said in a news release. "People have printed buildings and large structures, but they haven't done it onsite and all at once. This is the first-in-the-world, onsite continuous concrete print.” Full article: https://www.marinecorpstimes.com/news/your-marine-corps/2018/08/30/no-sandbags-needed-marines-3d-print-a-barracks-room-in-40-hours