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April 9, 2020 | International, Aerospace

Could a commercial drone replace the MQ-9 Reaper? The Air Force is considering it.

By: Valerie Insinna

WASHINGTON — The Air Force is looking for a replacement to the stalwart MQ-9 Reaper and intends to explore options ranging from commercial drones built by emerging tech firms to high-end unmanned aircraft, the service's top acquisition official said Tuesday.

Will Roper, the Air Force's assistant secretary for acquisition, technology and logistics, said the service is working on a study that will inform the fiscal 2022 budget and lay out a path for replacing the MQ-9 Reaper made by General Atomics.

"The Reaper has been a great platform for us. Four million flight hours, just undeniable overmatch in a low-end uncontested fight, and it is certainly saving lives,” Roper told lawmakers at a House Armed Services Committee hearing. “But as we look to the high end fight, we just can't take them into the battlefield. They are easily shot down.”

The MQ-9 Reaper and its precursor, the MQ-1 Predator, have been the Air Force's workhorse drones in the Middle East over the past two decades, providing both real-time video surveillance and the ability to strike targets. But looking forward, the Reaper is ill-suited to a war with Russia and China while at the same time seen by the Air Force as requiring too much money and manpower to sustain for continued operations in low-threat environments.

There likely won't be a single, one-size fits all solution for replacing the MQ-9, Roper said. The Air Force may need drones that “are more high-end, military-unique” systems, and “they'll likely be expensive,” he acknowledged. There may also be room for unmanned attritable aircraft, which are reusable but are cheap enough that they can be shot down in battle without incurring massive financial losses.

For lower-end missions, the Air Force sees promise in the emerging unmanned systems market, where new entrants have begun creating long-loiter drones for applications in agriculture, communications and the oil and gas sector.

“A lot of companies are targeting that market, not thinking about defense because we've been buying Reapers forever,” Roper said, who added that by buying from promising commercial drone makers, Air Force may be able to influence those companies to keep their supply chains out of China and to incorporate military-specific features — potentially even weapons.

“I think if we do the program right on the commercial side, we might be able to bring a new entrant into defense without making them a defense prime,” he said, adding that funding from the Air Force could help a commercial company move from making prototypes to building up a stable production line that could further be grown to manufacture drones on a more massive scale.

“Working with the Defense Department, you don't need the kind of production capacity that the globe does. So, we're a pretty good first stop,” he said.

However, the Air Force may face an uphill battle in getting Congress to support a plan to replace the Reaper. The service in its FY21 budget request has asked for 24 more MQ-9s before ending the programs of record — a move that would curtail the program from 363 to 337 Reapers.

The early shutdown of the line would have major financial implications for General Atomics, said Chris Pehrson, the company's vice president of strategic development, in a February interview with Air Force Magazine.

“We're actually going out about 22 months ahead of delivery and procuring the long-lead item parts, ... whether it's [satellite communication] equipment or engines ... to negotiate the best prices and get the best deals for the government,” Pehrson said. “Having the rug pulled out from under your feet at the last minute kind of disrupts all your supply chain investments that you're making.”

Top generals in the Middle East and Africa have also raised concerns about the demands for intelligence, surveillance and reconnaissance and privately helped stave off retirements of the MQ-9 by the Air Force in FY21. In its unfunded wish list, U.S. Central Command included additional contractor-flown MQ-9 hours as its number one priority, at a cost of $238 million.

https://www.defensenews.com/air/2020/03/12/could-a-commercial-drone-replace-the-mq-9-reaper-the-air-force-is-considering-it

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  • Intelsat declares bankruptcy

    May 19, 2020 | International, Aerospace, C4ISR

    Intelsat declares bankruptcy

    Nathan Strout and Valerie Insinna Satellite communications provider Intelsat declared bankruptcy May 13, although its subsidiary which provides services to the Department of Defense is not part of the Chapter 11 proceedings. CEO Stephen Spengler spun the action as a positive move, claiming it gave the company more financial flexibility for the Federal Communication Commission's clearing of C-Band spectrum to make way for 5G uses. Major satellite communications companies, including Intelsat, saw their stocks take a massive hit last fall when FCC Chairman Ajit Pai announced plans for a public auctioning of C-Band spectrum, which C-Band holders like Intelsat had hoped to sell off directly. The company says it will need to spend more than $1 billion to meet the FCC's deadlines for clearing out C-Band spectrum, which it needs to do in order to be eligible for $4.87 billion in accelerated relocation payments. Wiping the company's significant legacy debt off the books will help it accomplish those actions, said Spengler. “We intend to move forward with the accelerated clearing of C-band spectrum in the United States and to achieve a comprehensive solution that would result in a stronger balance sheet,” said Spengler in a statement. “This will position us to invest and pursue our strategic growth objectives, build on our strengths, and serve the mission-critical needs of our customers with additional resources and wind in our sails.” Subject to court approval, the company said in a statement it had already secured $1 billion in new financing in debtor-in-position funds, giving it the liquidity to continue current operations and finance C-Band clearing costs spurred by the Federal Communications Commission. The company claims that day-to-day operations will not be impacted by the restructuring process—it will continue to launch new satellites and invest in its network with no changes planned. The Chapter 11 petitions for Intelsat and some of its subsidiaries were filed with the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division. However, Intelsat General, which provides satellite communications to the U.S. military and allied military customers, is not part of the bankruptcy proceedings. “The immediate concern (for DoD) is continuity of operations and it sounds like that is not going to be a big issue,” said Todd Harrison, director of the Aerospace Security Project at CSIS. “The longer term concern for DoD is how does Intelsat eventually emerge from bankruptcy, and is there any kind of transfer in ownership or an increase in ownership stake that would be concerning from a national security perspective.” Specifically, investment from Chinese companies could raise alarms for the military and the Committee on Foreign Investment in the United States. “I think that's something that DoD will be watching, that Treasury will be watching,” he said. “It will be a positive side from DoD's perspective if wherever the capital is coming from is from a U.S. source.” When asked about potential Chinese investment in a bankrupt Intelsat May 14, U.S. Air Force Assistant Secretary for Acquisition, Technology and Logistics Will Roper acknowledged he had concerns. “It's a topic that's harder for me to talk about, but we are mindful of adversarial tactics in this period. Every crisis is an opportunity, and with companies coming under duress it is an opportunity for predatorial tactics targeting IP that countries would not have access to otherwise," he told reporters. Furthermore, Roper noted that the decision to financially support a company like Intelsat to prevent foreign investment requires a different calculus than a traditional stimulus. “The way to engage if we risk losing IP to a nation for whom it's not in our interest to have it, it's a very different strategy (than whether we) should engage to prop up a company through stimulus," he said. "When the former appears to happen, then we need to pivot into a different gear than we would be in the latter. We simply cannot do stimulus for every company that is in duress right now.” Intelsat isn't the only major satellite company to declare bankruptcy. OneWeb—who have been building a proliferated low earth orbit constellation to provide broadband—declared bankruptcy in March. DoD had been exploring utilizing OneWeb for communications in the Arctic among other things, and Lt. Gen. David Thompson, vice commander of Headquarters Space Force, noted earlier this week that the department's new Space Acquisition Council was looking into helping OneWeb and other financially vulnerable space companies impacted by COVID-19. Intelsat noted in a statement that several of its end markets had been impacted by COVID-19. Roper said he was concerned with how COVID-19 was disproportionately affecting space and aviation companies, which rely more heavily on commercial revenue than other parts of the defense industrial base. “That's why we've taken such aggressive means to accelerate contract awards," said Roper. “We're worried about space, as well, especially microelectronics. All of the Space Acquisition Council shares that concern. And as we see the Chapter 11s being filed—we're tracking them—but our concern as an acquisition enterprise has got to be industrial base health and not picking winners or losers with specific companies. It's ensuring that we are engaging to have a healthy industrial base on the other side." Roper added that he had approved the acceleration of a major satellite award that should be announced this week as part of the department's efforts to increase the flow of funding to defense companies during COVID-19. https://www.c4isrnet.com/battlefield-tech/space/2020/05/14/intelsat-declares-bankruptcy/

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