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May 8, 2023 | International, Aerospace

Commercial Space Office’s Kniseley keeps focus on industry engagement

The organization replaces the Commercial Services Office, which was established just a year ago.

https://www.c4isrnet.com/battlefield-tech/space/2023/05/08/commercial-space-offices-kniseley-keeps-focus-on-industry-engagement/

On the same subject

  • House Appropriators Add 12 F-35s, Boost Weapons Spending, But…

    July 8, 2020 | International, Aerospace, Naval

    House Appropriators Add 12 F-35s, Boost Weapons Spending, But…

    "To us, it means that there is going to be much more tension and debate over future modernization programs as flat investment will not enable DoD to recapitalize in a timely and militarily relevant pace," says defense analyst Byron Callan. By COLIN CLARKon July 07, 2020 at 7:38 PM WASHINGTON: House appropriators made their first cut at the annual defense spending bill today, approving spending $3.5 billion below the Trump Administration's request — although lawmakers added a substantial $4.1 billion for several weapons systems, including 12 additional F-35s. Overall, the House Appropriations Committee trimmed $3.5 billion from the Trump Administration's 2021 budget request while still fully paying for a 3% pay raise and force structure increases to all but the Marines, who will lose 2,100 people. The appropriators approval of an increase in F-35 buys makes it unlikely the House Armed Services Committee's skepticism of the Joint Strike Fighter program will prevail. The HASC added no more planes above the administration request for 79 aircraft of all three models and docked at least a score of supporting line items by a total of $561 million. By contrast the SASC added $1.36 billion to buy more Air Force F-35As, Marine F-35Bs, and Navy F-35Cs, plus spare parts. In other bump ups, the HAC funds 11 V-22 aircraft, adding $1.1 billion to buy two more than the request. It also adds three P-8A Poseidon aircraft for the Navy Reserve, three more than the request for an additional $510 million. And echoing the House authorizing committee's support, the HAC added 16 MQ-9 Reaper unmanned aerial vehicles to the Pentagon request, for a cost of $344 million. But making sense of the HAC-D bill is difficult because it's not yet clear what and where they've cut, as veteran defense stock analyst Byron Callan notes. It all gets complicated by the CARES Act and adjustments to contracts that have been made. Overall, Callan says, it looks as if fiscal 2020 — last year — may have been the peak of whatever Trump defense boost there has been. But it's all uncertain. “Absent the pandemic budget impacts, however, the markups so far suggest that FY20 was a peak for DoD investment. This does not mean investment is at the peak and headed fast downhill in FY21 and beyond,” Callan writes. “To us, it means that there is going to be much more tension and debate over future modernization programs as flat investment will not enable DoD to recapitalize in a timely and militarily relevant pace.” https://breakingdefense.com/2020/07/house-appropriators-add-12-f-35s-boost-weapons-spending-but/

  • Boeing Defense to Surpass Commercial Side For First Time In More Than a Decade

    April 30, 2020 | International, Aerospace

    Boeing Defense to Surpass Commercial Side For First Time In More Than a Decade

    But that's no cakewalk as new Air Force One and KC-46 tanker eat into the company's cash. Updated, April 30, 2020, with a U.S. Air Force statement. For the first time in 12 years, Boeing executives expect the company's defense and space unit to outperform its commercial airplane business, which is reeling from coronavirus and 737 Max losses. Boeing's defense business has not outperformed its commercial side since 2008, when the commercial market was still recovering from post-9/11 declines and U.S. defense spending spiked during the wars in Iraq and Afghanistan. The prediction comes on the back of pre-existing problems in the Boeing Defense, Space & Security division. The company's defense unit took a $1 billion hit in the first quarter of 2020, adding to the growing list of financial woes for the company trying to dig itself out of a massive hole. “This year ... the defense business will probably be bigger than the commercial business,” Boeing CEO David Calhoun said during a call with Wall Street analysts. “That will probably hold for a while.” MOST READ 1Artificial Intelligence Outperforms Human Intel Analysts In a Key Area 2Pentagon's ‘Willingness to Kiss the President's Ass' Worries Top Lawmaker 3Boeing Defense to Surpass Commercial Side For First Time In More Than a Decade SUBSCRIBE Receive daily email updates: Subscribe to the Defense One daily. Be the first to receive updates. ADVERTISEMENT Additionally, executives said Wednesday that Boeing would lose $827 million on its work building KC-46 aerial refueling tankers and $168 million on the new Air Force One 747s that will fly the president, according to executives and regulatory filings. It's the latest black eye for the tanker project, which has cost the planemaker more than $4 billion over the past nine years. However, it is the first cost increase on the high-profile Air Force One project, which President Donald Trump personally negotiated with former Boeing CEO Dennis Muilenburg. Boeing began work converting two 747 jetliners into the unique Air Force One configuration in January before the coronavirus pandemic forced many workers out of the office. “As we've had folks working virtually, and particularly on the engineering side — as well as that's gone — it's certainly experienced some inefficiencies that has caused us to reevaluate our estimate to complete those efforts,” Boeing CFO Greg Smith, said of the Air Force One project during a Wednesday afternoon call with reporters. “The team has been doing a great job managing the program and executing very well on many fronts, but this we could not offset in the quarter as a result of COVID,” he said. “The program remains on schedule and ... continuing to execute, but we're looking for opportunities obviously to mitigate any further risk that we may have as a result of COVID.” The terms of the Air Force One contract require Boeing, not taxpayers, to pay for any cost increases during the development of the plane, which the military calls a VC-25B. Despite the coronavirus-related issues, Ann Stefanek, an Air Force spokeswoman, said the project remains on track. “As planned in the baseline schedule, the next phase of modification is on course to begin in June 2020,” Stefanek said in an emailed statement. “To maintain current schedule, Boeing and the VC-25B program office adopted maximum use of virtual tools, most notably to close Critical Design Review in March 2020 and conduct a modification readiness review in April 2020.” As for the tanker, $551 million in cost increases stem from a deal reached between the Air Force and Boeing requiring the company to fix the complicated camera system used when refueling other aircraft. Most of the remaining $276 million is the result of coronavirus-related factory closures in Washington state where the tanker is built, and a “cost shift” resulting from slowing production of other commercial manufacturing. “I do believe that that program now is exactly where it needs to be,” Calhoun said of the KC-46. “We're going to finish well. Importantly our customer is going to feel like we have finished well and we've delivered a product that is second to none. I do believe that even the tanker future is significantly brighter than the one we've experienced up until now.” Calhoun also touted the company's development work. Although he did not mention any projects by name, Boeing is in the early stages of testing two new aircraft — the T-7A pilot training jet and MQ-25 refueling drone. “Our development programs at the early stages are all looking quite good. We're really not off plan on anything and usually by now we have a snip that we might be. I feel pretty good about the risk profile of our defense business despite the difficulties that we've attempted to overcome in just the last couple of years.” The same can't be said of the company's commercial airliner and aircraft repair businesses. Boeing is planning to cut 10 percent of its 160,000 employees through voluntary layoffs, attrition and involuntary layoffs. The coronavirus has driven a substantial blow to the storied 104-year-old aerospace and defense company, which had already been reeling from the fallout of deadly 737 Max crashes in October 2018 and March 2019. Passenger air travel has fallen to record lows prompting airlines to cancel flights, ground aircraft, and defer buying new planes. Boeing in late March temporarily stopped making commercial and military aircraft — including the tanker and the Navy's P-8 submarine hunter — in the Seattle-area, a COVID-19 hotbed. It also shut down its military assembly lines in Philadelphia for the Chinook and MH-139 Grey Wolf helicopters, and the tilt-rotor Osprey. Those factories have since reopened. A shuttered 787 Dreamliner factory in Charleston, South Carolina, is expected to reopen next week. Now all eyes — including at the Pentagon — are watching to see how Boeing manages tens of thousands of employees on its complex assembly lines with new social distancing procedures in place. If successful, the model could become a blueprint for other U.S. manufacturers. “They have allowed me to share their practices more broadly with industry to make sure that anything that is working for them to either be safer or get back to work, that that's something that can be shared with all,” Will Roper, head of Air Force acquisition, said Wednesday. Boeing began the year with hopes of fixing its troubled 737 Max and restoring public confidence in the world's largest planemaker. Unable to deliver the unflyable Max to the airlines, it stopped building them in early January as it began running out of places to park them. Photos showed planes carefully aligned next to one another on tarmacs and even in employee parking lots. There's still no formal timetable for getting the Max flying again, although executives are hopeful regulators will approve a number of fixes in the coming months and that it can begin delivering 737 Max aircraft to airlines in the third quarter. https://www.defenseone.com/business/2020/04/boeing-defense-surpass-commercial-side-first-time-more-decade/165020/

  • US Air Force nuclear, space programs take hit in border wall reprogramming

    May 14, 2019 | International, Aerospace

    US Air Force nuclear, space programs take hit in border wall reprogramming

    By: Joe Gould , Aaron Mehta , and Valerie Insinna Correction: A previous version of this story contained an erroneous amount of reprogrammed money. The story has been updated to show the Pentagon reprogrammed $1.5 billion in FY19 funds. WASHINGTON — In the wake of the Pentagon reprogramming $1.5 billion in fiscal 2019 funds to support President Donald Trump's border wall with Mexico, only the U.S. Air Force appears to be losing money appropriated for equipment updates. The funding largely comes from personnel accounts in the Air Force, Navy and Army. But the Air Force is the only service to lose funding for hardware, including nuclear and conventional weapons, surveillance aircraft updates, and space programs. Overall, the Pentagon reprogrammed $818.465 million from FY19 defense appropriations, as well as $681.535 million from FY19 overseas contingency operations accounts, or OCO, to reach that $1.5 billion total. Lawmakers expressed concern that the use of military resources and manpower on the southern border will damage military readiness. However, acting Defense Secretary Patrick Shanahan said last week that ongoing deployments to support the Defense Department aren't doing so. “We've seen no degradation to readiness,” he told Senate appropriators May 8 at a defense budget hearing. “In fact, in some cases, it's enhanced our readiness because the troops get to perform certain functions.” Congressional Democrats and some Republicans have objected to the administration's use of this mechanism for funding the president's border wall, arguing it bypasses Congress' constitutional power of the purse. For the second time in recent weeks, the Pentagon ignored decades of precedent and carried out the transfer of funds without first consulting with the Senate Appropriations Committee. Sen. Patrick Leahy, the Senate Appropriations Committee's top Democrat, led a letter to Shanahan on May 10 to object to the latest instance, saying it harms hurricane cleanup at Tyndall Air Force Base, Florida. “We are dismayed that the Department has chosen to prioritize a political campaign promise over the disaster relief needs of our service members, given the finite reprogramming authority available," the lawmakers wrote. They noted that Shanahan's decision to notify Congress of the reprogramming came a day after he testified before the subpanel that oversees defense spending, and they wrote that they welcomed his views on “how you intend to repair the damaged relationship between the defense oversight committees and the [Defense] Department.” The letter was also signed by the Senate Armed Services Committee's top Democrat, Sen. Jack Reed, as well as Democratic Sens. Dick Durbin, Brian Schatz, Tom Udall , Patty Murray, Chris Murphy, Tammy Baldwin, Dianne Feinstein and Jon Tester. The reprogramming could be a topic at Shanahan's future confirmation hearing for the full job of defense secretary. A date for that hearing has not been set. Why the Air Force? About half of the non-OCO $818 million sum the Defense Department wants to redirect to the border comes from Air Force accounts, with space and missile programs taking the biggest hit. In total, the Pentagon expects the service to shear $402 million off its FY19 budget. About $210 million would be cut from Air Force space programs, specifically the Evolved Expandable Launch Vehicle program, which funds the use of rockets that send satellites and other capabilities into space. According to the reprogramming document, one rocket launch has been canceled due to the “Space Test Program (STP)-4 satellite provider termination of the Robotic Servicing of Geosynchronous Satellites (RSGS) spacecraft,” which is no longer necessary under the National Security Strategy. The Air Force's program for modernizing its E-3 Sentry early warning aircraft — more commonly called AWACS — also could lose funding that it no longer needs in FY19. The program, "Diminishing Manufacturing Sources Replacement of Avionics for Global Operations and Navigation,” or DRAGON, updates the E-3's avionics and brings it into compliance with future air traffic control requirements. But it is moving too slowly to use all of the funds it was appropriated in FY19, so the administration aims to have $57 million diverted for border protection. DRAGON has been delayed for two reasons, according to the reprogramming request. First, “aircraft have been available for programmed depot maintenance” at a slower-than-planned rate, dragging out the modification schedule. Additionally, DRAGON integration can only occur after AWACS are upgraded to the Block 40/45 configuration, and not all aircraft have gone through that process. The Air Force sees AWACS as a key part of its initial version of the Advanced Battle Management System, a family of systems that will provide ground surveillance across the different military services. Instead of retiring seven E-3s in FY18, Gen. Mike Holmes, head of Air Combat Command, said those planes could be upgraded with new sensors and communications gear. However, DRAGON isn't the only modernization effort for the Sentry that is moving slower than expected. In November, Bloomberg reported that the service terminated a contract with Boeing to upgrade the AWAC's characteristic disc-shaped radar due to repeated delays. Other Air Force programs that will take a hit include a planned upgrade to the Minuteman III intercontinental ballistic missile and the air-launched cruise missile programs. A number of top defense officials previously said nuclear modernization is the top priority for the Pentagon, including Ellen Lord, the department's acquisition head, who on May 1 told Congress: “We have weapons that are decades over what was supposed to be their useful life. And we are out of time. We need to continue on the path we're on, or we are going to fall behind and not have the nuclear deterrence that we enjoy today.” The document reprograms $24.3 million, of the $124.5 million appropriated in FY19, from the Minuteman III Launch Control Block Upgrade program; the document claims funds are available due to a “slip in the production schedule for FY 2020.” Meanwhile, $29.6 million — more than half of the $47.6 million appropriated for the air-launched cruise missile programs in FY19 — will be reprogrammed. The explanation for that change: “Funds are available due to contract savings from reduced guided missile flight controller modification requirements; and due to lack of executable requirements for Support Equipment and Low Cost Mods in FY 2019.” The reprogramming of funds for the Hellfire missile is also notable, as the Pentagon has identified a lack of munitions stockpiles as a major issue to address in its budget request. As an example, the FY20 budget called for the maximum rate of production possible on Hellfire: $730.8 million for 9,000 of the weapons. The document states that funds are “available due to contract savings from all variants that provide precision kill capabilities. Savings are attributed to negotiated lower unit costs per missile system.” https://www.defensenews.com/smr/federal-budget/2019/05/13/us-air-force-nuclear-space-programs-take-hit-in-border-wall-reprogramming/

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