August 24, 2023 | International, Aerospace
US Navy awards Sikorsky $2.7 billion for 35 CH-53K helicopters
The contract covers 12 lot 7 and 15 lot 8 aircraft for the U.S. Marine Corps, as well as eight aircraft for the Israeli Air Force.
May 19, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
Coronavirus Hampering Defense Contractor Operations, Reader Survey Finds
t's harder to win business amid a pandemic, said one-third of industry respondents in a Defense One reader survey.
Federal contractors and private-sector workers say the coronavirus pandemic is hurting business and their ability to compete for government work, a new survey of Defense One readers has found.
More than 75 percent said COVID-19 had a moderate, major, or extreme impact on their company's day-to-day operations. About 22 percent said the virus had a minimal impact; 2 percent, no impact.
Nearly 60 percent of the respondents said coronavirus has forced them to slow or pause production. Nearly 40 percent said their business has seen disruptions to its cash flow.
Defense One commissioned the survey, which was conducted by Government Business Council, a division of Defense One's parent company, Government Executive Media Group. The survey was conducted May 8-14 and received 677 responses, yielding a 5 percent margin of error. Of those, 313 self-identified as a government contractor or private sector employee.
Related: 62% Disapprove of Trump's Coronavirus Response, Reader Survey Finds
In March, the Pentagon began paying its contractors more money up front so these large firms could send more money to the smaller companies that make up their vast and diverse supply chains. Collectively, companies have sent or pledged to send billions of dollars to their suppliers in a quicker fashion. Still, Ellen Lord, defense undersecretary for acquisition and sustainment, said last month that she was expecting a three-month slowdown in weapons deliveries as companies faced shutdowns and modified their processes and procedures to comply with social distancing and other guidelines.
About 30 percent of contractors and private sector workers said their business has experienced supply-chain disruptions.
While more than one-third of respondents said social distancing has hurt their company's ability to compete for government contracts, more than half said social distancing has made no difference in their company's ability to win contracts and 12 percent said restrictions have helped their company's competitive advantage.
More than 17 percent said their business has had to lay off employees; 18 percent said their companies have furloughed workers.
One-quarter of respondents said lack of access to senior officials and decision makers and the inability to attend networking events has affected their business. With conferences, trade shows and other in-person events on hold indefinitely, trade associations and event organizers have looked for virtual ways to replicate not only speaker presentations, but the sideline discussions and other types of networking that many consider essential to doing business in the defense sector.
“Your ability to pull somebody off the stage coming off a panel, the ability to ask a question in the question-and-answer period in this environment, is a little bit challenging,” Hawk Carlisle, a retired Air Force general who is CEO of National Defense Industrial Association, said in an interview late last month. “It is having an effect and I do believe the longer this goes on it will continue to have an effect.”
This week, NDIA, which represents 1,700 large and small companies and has 70,000 individual members, became the first to transform a large conference and trade show into a fully virtual conference. Typically, its SOFIC event is held in Tampa, near the U.S. Special Operations Command headquarters.
This year, the speeches and panel discussions were broadcast online. What's more, the organization facilitated meetings between companies and government officials. NDIA, which usually hosts dozens of events around the country each year, is considering new ways to hold its gatherings, including hosting hybrid events, with some people in attendance and others attending virtually, Carlisle said.
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October 1, 2018 | International, Aerospace
Boeing’s big month capped off with hat trick of new contracts
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. https://www.defensenews.com/industry/2018/09/28/boeings-big-month-capped-off-with-hat-trick-of-new-contracts
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June 14, 2018 | International, Land
Gen. Milley is right: The US Army is on the mend
Last month, in an appearance before the Defense Subcommittee of the Senate Appropriations Committee, Chief of Staff of the U.S. Army Gen. Mark Milley provided a notably upbeat assessment of the state of his service. “The Army is on the mend. I can report out to you today, after two and a half years as the chief of staff of the Army, we are in significantly better shape than we were just a short time ago. And that is through the generosity of this Congress and the American people,” he said. Clearly, some of the credit for the Army's improved state of affairs is a result of the recently passed two-year budget, which provided a much-needed increase in resources. The Army has been able to grow its end strength, purchase needed munitions and spare parts, increase training activities, and recapitalize older and damaged equipment. More resources have also enabled the Army force to expand its presence in Europe, increase, albeit modestly, procurement of upgraded Abrams tanks, Bradley Fighting Vehicles and Strykers, and acquire the new Armored Multi-Purpose Vehicle. But much of the credit goes to the Army chief of staff himself. About a year and a half ago, I wrote a blog for the National Interest titled “Perhaps the Most Remarkable CSA in More than Half a Century.” It was Gen. Milley who made modernization the measure of success for his tenure as the Army chief of staff. This change in strategic direction came just in time, ahead of the reappearance of great power competition as the greatest threat to this nation's security. Gen. Milley is not alone in his quest. In fact, it is a troika consisting of Secretary of the Army Mark Esper, Under Secretary of the Army Ryan McCarty and the chief that is fashioning a new Army in record time and doing so while simultaneously transforming the Army's acquisition system. This is the proverbial case of changing the car's tires while speeding down the road. The early signs are that the Army modernization is on the mend and the acquisition system is being changed. An important example of these improvements is the Army's Rapid Capabilities Office. Established by the secretary and the chief in August 2016, the RCO is tasked to expedite critical capabilities to the field to meet combatant commanders' needs using alternative contracting mechanisms to deliver technologies in real time to the war fighter. One of the RCO's initial projects was to bring the Army back into the game with respect to electronic warfare. In 12 months, the RCO developed an initial integrated mounted and dismounted EW sensor capability that has been deployed with U.S. forces in Europe. A second phase of the project is underway that will add aerial sensors, additional ground-unit sets and improve functionality. Another program that is proceeding rapidly is a vehicle-mounted, jam-resistant positioning, navigation and timing capability for GPS-challenged environments. Prospective solutions are currently undergoing testing. The chief has directed the RCO to address several new areas. The RCO is working on a long-range cannon concept that may be able to double the range of 155mm howitzers, as well as optical augmentation technology to detect an adversary's anti-tank guided missile day/night sights and loitering munitions that can strike air-defense and artillery emplacements. The Army has been moving rapidly to address many of its critical capability gaps. To meet the challenge posed by hostile aircraft and drones, the Army intends to deploy the first battery of the Maneuver Short Range Air Defense launcher on a Stryker armored vehicle by 2020, five years ahead of schedule. Additional sensors and weapons, including a tactical laser, could be integrated into the new turret by the early 2020s. Tank-automotive and Armaments Command did a rapid assessment of active protection systems. The current plan is to equip at least four brigades of Abrams tanks with the Israeli Trophy system while testing continues on a number of solutions for other armored fighting vehicles. The Army also has used other rapid procurement organizations within the Pentagon. One of these is the Defense Innovation Unit Experimental, created in 2016 to push rapid innovation based on leveraging commercial companies. Recently, DIUx led a prototype contract involving upgrades for Bradley Fighting Vehicles. The first production items from it will soon be delivered to the 1st Cavalry Division at Fort Hood, Texas. There are other examples of advances in cyberwarfare, soldier systems, networking and long-range precision fires. The central point is that Gen. Milley's vision of the Army's future is turning out to be right. https://www.defensenews.com/land/2018/06/13/gen-milley-is-right-the-us-army-is-on-the-mend/