Contracts for October 8, 2021

On the same subject

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  March 6, 2020 | International, Aerospace

  US Air Force gets ready for decision on commercial aerial-refueling services

  By: Valerie Insinna ORLANDO, Fla. — The U.S. Air Force will know by the end of this month whether it will kick-start a competition for aerial-refueling services, the head of Air Mobility Command told Defense News. The service is in the final stages of a feasibility study that is evaluating whether the Air Force should buy commercial tanking services to support day-to-day needs for training and testing, said Gen. Maryanne Miller in an exclusive Feb. 28 interview. “The interest is high on the commercial side. The commercial companies who are considering this are really waiting to see the feasibility study, which will be completed in March,” she said. “The interest is high on the outside. I talked to a few vendors yesterday that was asking me when the study is going to be done. We're all waiting for that.” The study will help the Air Force determine whether it is cost-effective to use commercial aerial-refueling services as well as help set parameters on how a contract could be structured. However, Miller said, industry-operated tankers would not conduct combat or other overseas operations, and instead would be used exclusively for tasks in the continental United States such as augmenting training or for test and evaluation missions that AMC does not always have the capacity to fill. AMC believes its requirement will amount to about 6,000 hours per year, although the study could influence that number. Currently 14 companies have indicated interest in competing for the opportunity, she said. If the service decides to move forward with a competition, it believes it will be able to move from a contract award to an initial operating capability using a few aircraft in about a year, Miller said. “I love the idea. I hope the feasibility proves positive for us. That way we can get our requirements out there, we can start receiving proposals and then work that process as defined. We're optimistic,” she said. “That would be exciting to relieve some of the tension and stress on our force.” Getting Congress to agree to fund aerial-refueling services could be a hard sell, especially as the service considers paring back some of its own capacity. To free up funds for other priorities, the Air Force proposed retiring 16 KC-10s and 13 KC-135s in fiscal 2021. However, the idea has come under fire from U.S. Transportation Command — which has sought funds to buy back 23 of those tankers — as well as lawmakers who question whether the Air Force would be taking on too much near-term risk. But Miller contended that having the flexibility of commercial aerial-refueling services could relieve pressures on the military's own tankers, filling the gap for U.S. missions when there is high demand abroad. “It really just relieves and fills that market of the service missions we just don't get to today. Some of that is readiness-related,” she said. It also could have a positive impact for acquisition programs, as there will be more aerial-refueling resources available for test and evaluation, allowing test points to be completed more quickly and efficiently, and let the Air Force ensure it doesn't wear out its legacy KC-135s too quickly. “Having one more option is just really, really important.” https://www.defensenews.com/air/2020/03/05/the-us-air-force-is-getting-ready-to-make-a-decision-about-commercial-aerial-refueling-services/

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  June 27, 2019 | International, Other Defence

  Lockheed braces for German blowback over cost of missile-defense pitch

  By: Sebastian Sprenger PARIS — Lockheed Martin executives are preparing for a stiff debate in Germany about the price tag of a next-generation anti-missile system formally proposed to Berlin just days ago. “I think the price will be a challenge, and we'll have to negotiate to come to an agreement,” Frank St. John, executive vice president of the company's Missiles and Fire Control business, told Defense News in an interview at the Paris Air Show last week. “But we're going to do better than the early expectations of the price.” That is a reference to a figure that surfaced during the spring following testimony of a senior German defense official before parliament. At the time, the cost estimate for the TLVS program, short for Taktisches Luftverteidigungssystem, was €8 billion (U.S. $9 billion). St. John declined to name the price ultimately included by Lockheed Martin and its German partner MBDA in their June 21 proposal. But he suggested the figure would lie significantly enough below the €8 million mark to be considered more than cosmetic. “I still anticipate a healthy debate and discussion about the pricing and the scope of the program through the negotiation process,” he said. Negotiations are expected to begin as soon as the German Defence Ministry has analyzed the proposal, described by German officials as being thousands of pages long. If the government and Lockheed Martin come to an agreement, the proposed investment would go before lawmakers for a decision, probably late this year or early next year. German plans for the TLVS program are based on the Medium Extended Air Defense System, conceived about 10 years ago as a replacement for the Patriot fleets of the United States, Germany and Italy. Soldiers had criticized the decades-old Patriot system as too cumbersome to deploy and maintain in the field. Germany has stuck with MEADS even after the United States and Italy dropped off, with officials in Berlin arguing the prospect of developing a truly novel defensive weapon was worth the gamble of going it alone. Defense officials in Germany have since added new requirements. For one, Berlin wants full control over all components, as opposed to buying an American weapon whose inner workings are shrouded in secrecy. In addition, the German government wants to be able to shoot down what officials call “advanced threats” (code for hypersonic missiles, such as those developed by Russia). According to St. John, Lockheed's latest TLVS proposal comes with the promise of intercepting such threats, though probably not the most sophisticated ones. “And then there is a provision in the contract and in the design of the system to add capability as time goes by and as the threat evolves,” he said. One of the sticking points for the proposed program — German access to secret performance data of the weapon's principal interceptor, the so-called MSE missile — appears to have been resolved, St. John said. Until late last year, Berlin was unhappy with U.S. Army restrictions placed on the information, which Germany considers crucial for adapting the system to its needs. Senior Pentagon leaders intervened to help resolve the logjam after Defense News reported on the issue in December 2018. “We believe that we have coordinated that with the Department of State and the appropriate folks at the Department of Defense, and that the German customer is going to have access to the data they need to evaluate the system,” St. John said. “They'll also have access to the data they need to recommend future modifications. We think that issue is resolved now.” At the same time, he added, another round of approvals will be needed from the U.S. government as contract negotiations with Germany progress. “We'll have to go back one more time ... to verify that everything is still in a good place." Patriot-maker Raytheon issued a statement Monday reiterating its readiness to snatch the missile-defense contract from arch enemy Lockheed Martin if the TLVS program goes south. The company especially played up the option of connecting an upgraded Patriot system to a lower-tier system, made by Rheinmetall, to defend against drones and artillery rounds. Ralph Acaba, president of Raytheon's Integrated Defense Systems business, said his company is increasingly banking on a layered air defense concept in which different systems — perhaps owned by different countries — take on various threat types. “No single nation, no single system can do it all when it comes to missile defense,” he told Defense News at the Paris Air Show. According to Joseph de Antona, vice president for business development and strategy in Acaba's division, Raytheon does not consider Lockheed's TLVS bid a threat to Patriot sales. “If a country makes a decision, it's our responsibility to honor and recognize that,” he said. At the same time, he added, Raytheon plans to continue to advise the German government on new threats and how to counter them. The company is “absolutely” still talking to the Berlin government to that effect, de Antona told Defense News. German lawmakers on the Defence and Budget committees on Wednesday approved roughly €120 million to upgrade the country's Patriot fleet to the newest configuration, known as “3-plus.” According to Raytheon, Berlin's investments to keep Patriot up to date had been lagging since the decision in favor of TLVS. Meanwhile, the proposed new system's funding profile has begun to take shape. Berlin wants to spend €3.36 billion on TLVS between 2021 and 2028, according to a draft government budget proposal meant for deliberation by lawmakers after the summer recess. That figure likely would be too low to finance Lockheed's entire program proposal. But the draft budget includes a provision permitting a transfer of funds from the envisioned €5.6 billion budget for a new heavy transport helicopter. The two contenders for that program are Boeing and Lockheed Martin. https://www.defensenews.com/digital-show-dailies/paris-air-show/2019/06/26/lockheed-braces-for-german-blowback-over-cost-of-missile-defense-pitch/

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  November 13, 2019 | International, Aerospace

  Can a new Franco-German export agreement clear the air for Europe’s future fighter?

  By: Sebastian Sprenger COLOGNE, Germany — French and German officials celebrated the signing of a new defense export agreement last month as a watershed moment, but political and industrial mistrust remains a wild card for the Future Combat Air System program — an envisioned sixth-generation fighter jet. The export pact, which entered into force in late October with the formal exchange of government notes, is meant to streamline a contentious process that has clouded bilateral defense cooperation for some time. Namely, the agreement dictates that joint government programs, like FCAS fighter jet, be free from interference by partner nations when it comes to eventual exports. The clause is mainly aimed at Germany, where politicians and lawmakers tend to scrutinize weapons deliveries to countries with known or suspected human rights abuses more heavily than their French colleagues. The situation has grown more tense since the October 2018 death of journalist Jamal Khashoggi, who Western officials believe was murdered by order of Saudi Arabia. Germany has since frozen all exports to the kingdom, prompting an outcry from France, where companies had to stall deliveries of equipment to Saudi Arabia in all cases where even a small number of components originated from Germany. The new agreement ensures “nobody can throw a wrench” into the other's export planning, says Matthias Wachter, chief defense analyst at the Federation of German Industries lobbying group. Having such a guarantee in writing is good news for FCAS and its ground-focused sister project, the Franco-German future main battle tank known as the Main Ground Combat System, he added. The language of the export pact is reminiscent of the 1971 Schmidt-Debré agreement, named for the German and French defense ministers at the time and panned in the left-leaning Spiegel magazine as an “embarrassing pact” when reporters found out about the then-secret understanding a year later. Fast-forward almost 50 years, and defense cooperation remains a thorny subject between the two countries destined to spearhead Europe's envisioned military autonomy in the coming decades. And there are also long-standing cultural differences that linger. There is a perception among some German lawmakers, for example, that cooperation with Paris inevitably means ceding power to French influence to the point that Germany plays only second fiddle, according to Wachter. That sentiment has led appropriators to craft a package deal for FCAS that would release funding for the next phase — building subcomponent demonstrators — only when there are assurances that Germany's tank makers, namely Rheinmetall, play a prominent role in the Main Ground Combat System effort. With armored vehicles traditionally being a strong suit for German industry, some here have privately complained about the 50-50 division of responsibility. “It's an emotional issue here in Germany,” Wachter said. Once the money begins to flow for an additional set of contracts early next year, there is a litany of questions yet to be sorted out. The fate of intellectual property rights, for example, remains unsorted, according to the analyst. In addition, as of late October, there was no agreement on Spain's industrial work share. Spain is something of a junior partner in the FCAS project, though officials in Madrid have said they expect equal treatment as a full member of the trinational project team. The Spanish government in the summer designated defense electronics company Indra as the national lead for the fighter program. The move angered Airbus, where officials were hoping to give their Spanish subsidiary a role that would satisfy Madrid's demands for industrial participation. Another potential point of contention has to do with military requirements for the future fighter. Perhaps the most prominent issue is that French officials want a carrier-capable jet, which Germany does not need. https://www.defensenews.com/air/2019/11/11/can-a-new-franco-german-export-agreement-clear-the-air-for-europes-future-fighter/