August 18, 2020 | International, Aerospace

CEO of Boeing’s defense wing talks stumbling blocks, from KC-46 to COVID

WASHINGTON — When Boeing Defense, Space and Security CEO Leanne Caret dials into our hourlong interview on Aug. 4, she comes prepared with 15 minutes worth of opening statements that include thoughts ranging from the company's performance during the coronavirus pandemic to the state of the KC-46 tanker program.

She knows she has a lot to cover, and a lot to answer for.

Caret stepped into the top Boeing defense job in 2016, after the American company lost a lucrative contract for the U.S. Air Force's next-generation bomber. Questions about Boeing's future as a producer of fighter jets — and the prominence of its defense business — lingered as the end of the F-15 and F/A-18 production lines loomed in the near future.

Now the tables have turned. With COVID-19 devastating the travel industry and eradicating near-term sales opportunities for commercial airliners, Boeing's defense sector finds itself as the company's model pupil.

“One of the questions that I get a lot is, how has that changed the expectations for me and for our defense and space business?” Caret told Defense News. “And I wanted to just anticipate the question and share that, you know, as I see it, the company's expectations of our business are the same as always. We need to perform consistently, and we need to perform well. And while our progress may be viewed through a different lens for a period of time, the expectations of how we do our job and what we deliver haven't really changed.”

Under Caret's leadership, Boeing has logged a number of major wins, including contracts for the T-7A trainer jet and the Grey Wolf helicopter for the Air Force, as well as the Navy's MQ-25 drone. New orders for a block upgrade of the Super Hornet aircraft resuscitated that production line, and in July the company got its first order for the Air Force's F-15EX jet.

“I mean, how many people a few years ago would have placed a bet that we'd be building new F-15s? I say, few to none,” she said.

But amid this progress, the company has met stumbling blocks. Most prominently, the KC-46 has been hampered by a list of technical issues, including foreign object debris found in the jets and a dispute with the Air Force over the camera system that allows the boom operator to refuel other aircraft. A deal on a fix for the latter problem was agreed to in April after more than a year of negotiations.

“I think we've turned the corner. I really do,” Caret said. “What I want you to know from me is I want every KC-46 delivered to be perfect. We're not there yet. But we're aligned with the Air Force, and our road map is sound.”

This interview with Caret was edited for length and clarity.

The COVID-19 pandemic is still ongoing, and there could be a second wave approaching. With that in mind, what is the health of Boeing's defense business? Where are you seeing challenges?

It's not unique to Boeing, but our workforce — think about this — they have masks on, safety glasses, bump caps, vests, gloves, 6-feet proximity. This environment that they're working in, it's just hard. We are still right in the middle of the pandemic. You'll see states that have different protocols. From a Boeing Company position, our goal is to make certain that our employees are safest at work.

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One of our biggest lessons learned is the quick benefit you can have from minimizing contact and quarantining. So when a case is identified, we do an entire trace of where the individual has been so that we can quarantine those who are potentially at risk, and then also make certain that they have the ability to go get the testing.

Every employee, we've made sure they have thermometers and masks as we continue to bring folks back in. We're making certain that we have lots of really great cleaning details, and folks just focused on easing the anxiousness of our teams because day in day out this is really hard. As you talk about the fall and the worry about the flu — we don't have a vaccine yet for COVID, and then you are dealing with the compounding effects of schools not being in session. We have not had a respite from this.

How is the health of your second-tier suppliers and below that? Are you concerned there could be delays in getting parts, components or subsystems that Boeing needs as we head into the fall?

We've already seen delays. Think about what we went through in both Mexico and India. We have suppliers in both of those countries. And again, this is not unique to Boeing. As they were going through their shutdowns and their quarantines, it impacted, many times, their production rates. And so that is where we have really a great cross-sharing of information occurring.

One big focus for us has been making sure we've been aggressive in making certain that they have cash flow, they have liquidity. We've actually hosted events with the Small Business Administration for our supply base. On one level, it's making certain that we help them get what they need.

We also adjust how we do business so it makes it more efficient. A great example of that is how we're doing virtual inspections now. We have teams go out and inspect parts and do different things like that. We now do them with videos and cameras so that we don't slow the supply base down. Anywhere where we can do advances and allow our supply base to do advanced delivery, we're doing that as well.

What's been the impact of pauses at your defense production lines in Puget Sound, Washington, and Philadelphia, Pennsylvania? Will Boeing be able to deliver all of the military aircraft that was the books for 2020?

So for instance, with the Army, we actually did slow down the pace of Apache [attack helicopter] final assembly due to some supply chain impacts resulting from COVID. And most of those came from our efforts with our JV [joint venture] with [Indian defense company] Tata. But there is some realism in what you're talking about.

Now, I'm not seeing drastic changes at this point. But to your earlier point, we haven't gotten to the fall yet. So we're all being very pragmatic. We're being very cognizant of prioritizing what our customers need and making certain that we can support them. And then we just assess it on a case-by-case basis. And I'll defer to the services to let them publish any changes that have been agreed to or not.

Is the worst over for Boeing's defense business, or is there concern that a second wave of COVID-19 could cause a more dramatic impact?

I mean, let's be honest: If nothing else, we know the flu always hits hard in the fall/early winter time frame. So there's a compounding effect there. And so we are planning for another resurgence, but we have the benefit of what we've already been through, and a disciplined approach for how we manage it. That's really going to aid us. I'm not going to predict, other than to say we are better positioned now to handle a resurgence than we were when the thing first started.

Under your leadership, there was a realigning of some of Boeing's business divisions involved in the defense sector. But given that the operating environment has changed, do you anticipate more restructuring or changes in leadership?

I think any good leader always looks at: Do you have the right structure for the business environment and for the market? And we made some very specific decisions when I first came into this role about flattening the organization, taking out layers, reducing. We were extremely top heavy. We eliminated a lot of that. I feel very comfortable. I'm not predicting anything significant.

Do you expect an impact on foreign military sales because of the global economic downturn or because countries are trimming defense spending?

Absolutely. The industry is already seeing that nations have been affected by spending on COVID similar to the U.S., and they're having to go look at their timelines.

We have not seen any cancellations. But we have seen some acquisitions and some contracts pushed to the right. Now, you also know that many of our international deals take — you know, they're years in the making anyways. But I think it's only pragmatic for us to look at it through the lens that they're going to face the same pressures the U.S. does in terms of spending decisions. And so that's why we really need to be flexible and we need to be innovative.

Over the past few years, Boeing has bid very aggressively on a number of defense programs like MQ-25 and T-X. Considering Boeing's commercial business now faces a number of financial challenges, was that a bad move? What sort of impact will that have on Boeing as a whole over the next couple years? Will Boeing continue to employ the same bidding strategy?

I actually remain very confident in the investments we made on both the MQ-25 and the T-7. There was a lot of commentary back at that time about how much we invested. We had already redesigned, reimagined, how are we going to use advanced modeling and simulation and digital twins. And so those investments, in terms of how we design and build, I think have paid off not only for those programs you mentioned, but for the F-15EX for the air power teaming system and for everything that follows.

It wasn't just about the bid. We evolved ourselves in terms of how we did the work, not just the offering. And that was really the true differentiator. I think that enabled us to win. Going forward, I think you will see — as we're delivering these aircraft and additional orders come in — that it was exactly the right thing to do.

So the investments Boeing made in advanced manufacturing processes and digital engineering make you confident these programs won't be a repeat of the KC-46 program?

It is my goal to never have a repeat of tanker, and that was the headset that I've gone into with pretty much every decision that we make. It started with how we design and how we build, to your point, and how we sustain over the long term. We had to go prove out those advanced technologies, and we spend our investment dollars wisely to be ready to go pursue this. So these are not the same; these programs aren't even in the same ballpark.

With flight testing ongoing for an interim version of the KC-46′s remote vision system, called RVS 1.5, when do you expect the Air Force to make a decision on adopting that?

We're still waiting for that. They participate in the flight testing. As a matter of fact, we had [then-Chief of Staff of the Air Force] Gen. [Dave] Goldfein out in Seattle. He was with me just a couple of weeks ago.

We're getting real pleased with the feedback. I think you've heard [Air Force acquisition executive] Dr. [Will] Roper's comments about it, and [he's] really pleased with the path that we're on. But that'll be an Air Force decision, and so I will defer to them on that.

The Air Force will award a Ground Based Strategic Deterrent contract in August, and Boeing did not bid because of complaints with how the competition was run. Is Boeing still looking at its legal options? Is it considering a protest?

We made the decision to not bid on GBSD due to what I was concerned about with the process, and I'll just leave it at that.

What do you see as the sales potential for F-15EX?

We are already getting inquiries. We're very excited, and they are nations that you would not be surprised about.

Are you satisfied that the Navy is committed to MQ-25? What kind of future do you see for that program?

We're absolutely thrilled with the partnership with the U.S. Navy. And you probably saw that in April they increased the quantity to a total of seven. So we're well on track to what we were working with in our assumptions when we bid on the program.

We have completed nearly 30 flight hours to date, and what [Assistant Secretary of the Navy for Research, Development and Acquisition James] Geurts saw while he was out there [at MidAmerica St. Louis Airport in St. Clair County, Illinois], was the aerial refueling store already mounted under the wing of the aircraft. As as we get back into flight testing later this year, we'll be able to collect more performance data.

https://www.defensenews.com/top-100/2020/08/17/ceo-of-boeings-defense-wing-talks-stumbling-blocks-from-kc-46-to-covid/

On the same subject

May 23, 2019 | International, Other Defence

DoD Awards Contract To Break Its Security Clearance Logjam
By BARRY ROSENBERG Can artificial intelligence, machine learning, and agile development help clear the massive backlog? WASHINGTON: The Pentagon hopes that a newly announced $75 million, 24-month contract will clear up its chronically backlogged security clearance system. The plan: develop prototype software that uses artificial intelligence to analyze routine data instead of humans running laborious background checks, freeing investigators to concentrate on the genuinely critical cases. How big is the mess? Hundreds of thousands of would-be federal employees and defense contractors wait an average of 221 days for a Secret clearance and 534 days for a Top Secret clearance, according to the National Background Investigations Bureau. The clearance backlog makes a day in line at the DMV look fast. It's a problem that costs the government millions of dollars and, in many ways, wastes the talent of countless individuals who give up and seek employment elsewhere. “The bottom line is we need to get cleared people to work in their job faster; we're not doing that job well,” said Terry Carpenter, the Program Executive Officer for the National Background Investigation Service, part of the Defense Information Systems Agency (DISA). “Whether you're in an agency, the federal government, or an industry partner .... we need to make sure those companies and agencies can get those people to work because they have their clearance.” The DoD's Defense Security Service (DSS), which runs the clearance process, and DISA, which runs much of the military's networks, jointly awarded the contract to Perspecta Enterprise Solutions of Herndon, VA, using the Other Transaction Authority process to bypass much of the traditional acquisition bureaucracy. Perspecta was formed in 2018 through the merger of the public sector business of DXC Technology, Vencore, and KeyPoint Government Solutions. Over the next 24 months, Perspecta will create a prototype “architecture” that can be scaled up to a full-sized security-check system, with two main features: Data ingestion and analytics using techniques like machine learning and natural language processing, which are both subsets of artificial intelligence; and A “software factory” to develop new vetting capabilities as needed. This will employ a software methodology called DevSecOps (Development-Security-Operations) that quickly delivers functionality that is then constantly improved through user feedback, while injecting security into all interactive phases of development, so usable software is delivered in weeks instead of months or years. Software development will be guided by a framework known as SAFe, which is an online knowledge base made available by an organization called Scaled Agile. The “factory” will continually develop, test, secure, and deploy new software in a government-run cloud, using what's called continuous authority to operate so its products can be used immediately, without a laborious certification process. The new architecture is being designed to transform three mission areas in the clearance process: initiation, investigation, and adjudication. Explained Carpenter: “There are several activities around the initiation part. [For example], you're a new employee coming in or a transfer coming in from a different agency. The initiation process engages with the subject and collects their information in a standard form that feeds the process. Then there's the investigation process. Under the old process, a full investigative package was prepared, which took a lot of time and labor. That was handed over for adjudication to an appropriate business function with the credentials to do the adjudication, and they would make the decision on that clearance. “What we are looking at today is continuous vetting as a way to use data to minimize the amount of labor force that has to knock on doors to get information. The more we can get done with data, the more effective we are at delivering the capability of a clearance, the more confidence we have in it, and the less it costs.” Data analytics will also facilitate continuous vetting throughout the work life of cleared individuals to address possible insider threats. “With this data-driven model, we can get into a continuous evaluation model rather than the current model, which is periodic investigation that looks at somebody every 5 or 10 years,” said Patricia Stokes, director, Defense Vetting Service, DSS. “We can utilize technology available today to initiate processes and capabilities to (gather) information on a real-time basis (to determine) your need for access and your risk.” https://breakingdefense.com/2019/05/dod-awards-contract-to-break-its-security-clearance-logjam
August 18, 2020 | International, Land

India Ban on $47 Billion Arms Imports Sowing Uncertainty
By Sudhi Ranjan Sen 16 août 2020 à 18:00 UTC−4 Updated on 17 août 2020 à 04:58 UTC−4 India's move to ban the import of certain weapon systems will do little to boost local manufacturing and is sowing uncertainty at a time when the South Asian nation is trying to ramp up defenses on its restive borders with China and Pakistan, according to analysts. Prime Minister Narendra Modi's administration earlier this month announced curbs on $47 billion worth of imports that include communication satellites, conventional submarines and light machine guns. But defense experts said they didn't address critical issues such as the certification of systems and locally-made components, and won't prevent the military from making emergency purchases of equipment from foreign vendors. Modi has struggled to transform the world's second biggest arms importer into a defense manufacturing powerhouse since a 2014 proposal to produce indigenous equipment and systems worth $100 billion by 2020. The target has since been slashed in half and the deadline extended to 2027, while the need for more advanced weaponry grows more urgent following the most deadly border clash with China in four decades. Modi Backtracks on Free-Trade Vow With Import Curbs in India The ministry's ban on imports will have little impact beyond “measures already taken to localize defense production and reduce import dependency,” said Amit Cowshish, a consultant with the New Delhi-based Manohar Parrikar Institute For Defence Studies and Analyses and a former financial adviser on acquisitions in the Ministry of Defense. “The promotion of local manufacturing requires more cooperation between the military and domestic defense industry,” Cowshish said. “Mutual trust is missing, with everyone working at cross purposes.” While New Delhi is the world's third-biggest military spender, its air force, navy and the army are still equipped with weapons that are largely obsolete. ‘Self-Reliance Push' The push for locally-produced systems and hardware was a big step toward self-reliance in defense and creates an opportunity for the Indian defense industry to manufacture the items using their own design and development capabilities, the Ministry of Defense said in a statement on Aug. 9. A defense ministry spokesperson was not immediately available for a comment. Similar policy declarations to stem imports were made by India in 2013, under then prime minister Manmohan Singh, and also by Modi's administration in his first term in 2018, didn't significantly increase the ‘Made in India' products deployed by the military. “Time and access to technology is fundamental to such efforts -- currently a large proportion India's defense industry is little better than system integrators,” said Rahul Bedi, a New Delhi-based independent defense analyst. “A major dose of realism is needed.” The banned list is also vague on the position of joint-ventures between Indian and foreign manufacturers and license produced weapon systems, he said. Despite its drawbacks, India's nascent defense industry is cautiously optimistic about the new policy. “We are sure that this list will keep getting amended to add newer programs that lay a road map matching our nation's aspiration,” said Jayant Patil, senior executive vice president (defence & smart technologies), Larsen & Toubro Limited. https://www.bloomberg.com/news/articles/2020-08-16/india-s-tense-borders-threaten-plan-to-ban-some-weapons-imports
August 10, 2020 | International, Aerospace

USAF Stages ARRW Captive-Carry Test, Merges DARPA Payload
Steve Trimble A U.S. Air Force B-52H on Aug. 8 completed the second and final instrumented measurement vehicle test flight of the Lockheed Martin AGM-183A Air-launched Rapid Response Weapon (ARRW), and the Air Force announced the payload for a previously separate risk-reduction program will be merged into the ARRW flight-test vehicles. The latest trial by the 419th Flight Test Sqdn. (FLTS) at Edwards AFB, California, confirmed that the Navy's sea-range ground stations at Point Mugu, California, can receive transmissions of telemetry and GPS data from the instrumented measurement vehicle, the Air Force said in an Aug. 8 news release. The second test appears to clear the Air Force to move forward with a series of powered test flights of the AGM-183A, beginning with a booster flight test before year-end. “The entire team is excited to take the next step and begin energetic flight test of our first air-launched hypersonic weapons,” said Lt. Col. Michael Jungquist, commander of the 419th FLTS and director of the Global Power Bomber Combined Test Force. The statement indicates that the Air Force has made a fundamental change to the original test plan for the Defense Department's only development program air-launched hypersonic glide vehicle (HGV). When the Air Force launched the ARRW program in 2017, service officials expected to leverage flight-test data from the Tactical Boost-Glide (TBG) program, which is funded jointly by DARPA and the Air Force. The TBG and ARRW were expected to use a similar, if not identical, high lift-to-drag-ratio HGV. DARPA planned to complete flight tests of the TBG in 2019, so the performance data could be used to inform any changes necessary for ARRW, which completed the critical design review in February 2020. The Air Force now acknowledges for the first time that DARPA has previously completed two captive-carry tests of the TBG demonstration system. Instead of continuing a separate series of flight tests, the TBG demonstration system “will be integrated into the ARRW payload,” the Air Force said. “We are in a competition and must remain diligent in our efforts to stay ahead of our adversaries, who are vigorously pursuing similar weapon systems,” said Gen. Arnold Bunch, head of the Air Force Materiel Command. It is not clear when the TBG captive-carry tests were staged, but the Aug. 8 event comes 416 days after the 419th FLTS completed a captive-carry test of the first instrumented measurement vehicle for the AGM-183A. For the second test on Aug. 8, the Air Force loaded both AGM-183A captive-carry vehicles onto the inboard pylon of the left wing of a B-52 nicknamed “Dragon's Inferno.”  Unlike the white-painted, first instrumented test vehicle, the second captive-carry version of the AGM-183A emerged in an operational, two-tone gray scheme, with the nose section painted a few shades darker than the booster section. The second instrumented measurement vehicle also was adorned with a new logo, featuring a skeletal figure firing an arrow over two Latin words, “celeri responsio,” which means “rapid response.” The Air Force plans to fire the AGM-183A at the most heavily guarded targets, using the weapon's agility at hypersonic speed to evade missile defenses. The Air Force expects to field the first four AGM-183As by the end of fiscal 2022. The booster tests this year and next year will be followed by flight tests of the all-up round, including the release of the TBG-derived HGV payload, starting in October 2021. “This capability will directly support our warfighters. Hypersonic weapons further enable the U.S. to hold any target at risk in any environment anywhere,” said Gen. Tim Ray, the head of Air Force Global Strike Command. https://aviationweek.com/defense-space/missile-defense-weapons/usaf-stages-arrw-captive-carry-test-merges-darpa-payload

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