DoD Budget Cuts Likely As $4 Trillion Deficit Looms

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  August 6, 2019 | International, Land

  For defense industry giants, there’s plenty of room in the hypersonic arena

  By: Jen Judson WASHINGTON — Defense industry giants see the hypersonic missile market as large enough to be fruitful for all the major players. Lockheed Martin, Raytheon and Northrop Grumman are engaged at all levels of offensive and defensive hypersonic missile capabilities as prime contractors on a variety of programs within the military services, but they are also partnering with each other. The U.S. military has dramatically ramped up efforts to build its hypersonic missile capability in a race with Russia and China. During Northrop Grumman's second quarter earnings call for fiscal 2019, President and CEO Kathy Warden described the hypersonic arena as having “plenty of market opportunity for all three of us.” The company recently acquired Orbital ATK, which has expanded Northrop's portfolio in hypersonics and other missile types, from propulsion and guidance systems to complete weapons. Warden said Northrop would continue to be a key supplier to Raytheon and Lockheed, for which it has done in the “more traditional” cruise missile area. And Northrop will continue to partner on hypersonic weapons, she added. Defense firms see dollar signs in hypersonics development, well in advance of potentially lucrative production contracts. Lockheed Martin's Marillyn Hewson reported during the company's second quarter earnings call for FY19 that recent contract awards from the U.S. military amounted to more than $3.5 billion. Hewson highlighted some of Lockheed's contract wins — specifically $928 million for the Air Force's Hypersonic Conventional Strike Weapon program and $800 million for the Navy's conventional prompt strike hypersonic effort. The Air Force program was awarded in 2018. In April, Lockheed reported that previous awards in hypersonic weapons — including a tactical boost-glide contract and the Air Force's Air-Launched Rapid Response program — had a cumulative value of $2.5 billion. The ARRW program experienced a successful captive-carry flight test on a B-52 Stratofortress bomber, Hewson said. Fast forward to July: Lockheed is now looking at a cumulative value in contract awards of $3.5 billion. The new contracts include selection as prime contractor for the long-range hypersonic weapon system integration effort in support of the Army Hypersonics Project Office. And Lockheed won another contract as part of a team led by Dynetics to build a common hypersonic glide body prototype for the Army. “We anticipate that both of these opportunities will be negotiated in the next few months,” Hewson noted. Most of the hypersonic awards Lockheed received “were not in our plan,” Ken Possenriede, the firm's chief financial officer, said during the earnings call. “Just to give you a little color, we're going to probably book about $600 million of sales in hypersonics this year. And then the rest of that $3.5 billion would go into the next two years,” he added. Raytheon continues to invest in hypersonics as well as counter-hypersonic efforts, the company's chairman and CEO, Thomas Kennedy, said during its second quarter earnings call for FY19. “We're actively working multiple hypersonics and counter-hypersonics programs. For example, we have the [Hypersonic Air-breathing Weapon Concept] HAWC system; the tactical boost glide; and we're also participating in the Navy's conventional prompt strike and also the Army's long-range hypersonic weapons program, and also some other classified hypersonic and also counter-hypersonic programs,” Kennedy said. “So it is becoming a big part of our portfolio moving forward.” Kennedy noted the HAWC program successfully completed some testing in a NASA high-temperature tunnel. Raytheon has also signed an agreement with Northrop to develop and produce next-generation scramjet combustors to help power its air-breathing hypersonic weapons. The Defense Advanced Research Projects Agency awarded Raytheon a contract in February to work on ground-launched hypersonic boost glide weapons. According to Kennedy, Raytheon believes the market for counter-hypersonic technology is bigger than that of offensive hypersonic weapons. There are also more opportunities to develop hypersonic capabilities within the company should the proposed merger with United Technologies Corp. move forward; Kennedy specifically cited efforts related to high-temperature engine materials and high-end sensors. Raytheon expected revenue to amount to about $300 million this year in hypersonic-related work as well as a growing backlog over the next 12-18 months. Northrop's Warden reaffirmed the company's commitment to uphold the partnerships with Lockheed and Raytheon established through Orbital ATK's business. “We got into agreements to support them on certain programs, and we are very committed to uphold those agreements and continue to support them with our best and brightest people and technology,” she said. Looking forward, Warden said Northrop will consider whether to go after opportunities as the prime or continue partnerships “through the prime of Raytheon, Lockheed and perhaps others that might emerge in this space as well, or both, and offer capability to everyone who is choosing to pursue the marketplace.” Northrop is “certainly not looking to take an aggressive stance in that marketplace, because ... it's a growing market and it's one that we feel is big enough for three parties to adequately play, and we want to make sure that our technology is getting into the hands of the war fighter and that we're giving them the best capabilities in a timely fashion,” she said, “and sometimes it makes sense for us to work with our competitors to do that.” While the hypersonics marketplace is in its nascent stage, companies are projecting weapons will move out of development and into production relatively soon. Prototype launches are expected to begin next year on many of the Defense Department's programs. “Some of these programs actually have scope that is to prepare for production,” Lockheed's Possenriede said. But “that doesn't mean they're going to go into production.” Still, if some of the hypersonic prototypes are deemed successful after first launch, “I think it will be the time for that customer set to sit with us, to see if it makes sense to go into production. And that's probably, say, two years out would be our best guess,” he added. https://www.defensenews.com/digital-show-dailies/smd/2019/08/05/for-defense-industry-giants-theres-plenty-of-room-in-the-hypersonic-arena/

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  February 10, 2020 | International, Land

  Army wades back into effort to replace Bradley vehicle

  By: Jen Judson WASHINGTON — The Army is wading back into an effort to replace the Bradley Infantry Fighting Vehicle with the release of a market survey on Feb. 7, tapping industry for ideas on what a future Optionally Manned Fighting Vehicle (OMFV) might look like. After receiving only one bid in its previous attempt to develop and procure the OMFV and subsequently deciding to cancel the existing solicitation last month, the Army has a new plan to move forward that seeks to avoid some of the pitfalls encountered during its first try. The market survey itself asks companies to weigh in on what affected their decisions to participate, or not, in the previous OMFV competitive effort and how the Army might better engage with industry this time around. Instead of a laundry list of requirements that when paired together became unachievable — especially when delivered over an ambitious fielding goal of 2026 — the Army will be giving industry roughly nine characteristics, each of which will be laid out simply enough to take up just a page-and-a-half including a signature block, Army Futures Command Commander Gen. Mike Murray told a group of reporters at the Pentagon shortly before the release of the survey. The Army had previously laid out requirements such as the need to transport two vehicles in a C-17, for example, which turned out to be a difficult ask to industry within the timeline the Army was pushing. While the list of characteristics did not post with the market survey, Murray said the vehicle will have to protect soldiers, keep pace in a combined arms formation, be able to upgrade over time through open architecture, and be capable of growth without significant weight increases. It also must be lethal, and able to traverse bridges and main supply routes. Additionally, the vehicle should be transportable by rail, air or sea, and crew members have to fit in the back. An on-board training system would also be nice, Murray said, adding that the Army wants to take a look at different options for power and energy sources. Murray also stressed the document outlining the characteristics would change as the Army learned more down the road. Not required of industry will be physical bid samples as it previously requested. Only General Dynamics Land Systems was able to deliver a bid sample, but it did not meet all the requirements the service had laid out. Defense News first broke the news that a Raytheon-Rheinmetall team was unable to get its Lynx combat vehicle to the United States from Germany in time and was subsequently disqualified and that BAE Systems, the incumbent, wouldn't participate in the competition either. The ability to see what was possible from a technology and integration standpoint “was important to us and so I wouldn't say it was a mistake," Murray said of the decision to require a bid. “Did it lead to some problems we had? Maybe. But I would not characterize that as a mistake.” The Army, instead, will take a more measured approach, holding conversations with industry, requesting white papers and then choosing five prime contractor teams to design rough digital prototypes, according to the Army's acquisition chief, Dr. Bruce Jette. The Army plans to involve “soldier touch points” at every stage of the process and give soldiers a chance to heavily evaluate designs along the way, he said. Murray took pains to emphasize that soldiers would be involved in the design process, calling it “soldier-centered design,” which takes a page from other modernization efforts like the Integrated Visual Augmentation System (IVAS) program. And before ever bending any metal, the service will downselect to a group of three contractors that will provide more refined and detailed digital prototypes akin to a critical design review stage. Then the Army will choose two prime contractors to build prototypes that will be heavily tested and demonstrated in order to potentially choose a winner that would move into a manufacturing contract, Jette explained. While the timeline was ambitious in the previous effort and Army modernization goals dictated that it had to stick to schedule over all else, a schedule or even a benchmark for the first unit equipped isn't defined this time around. Murray said the Army will look to early conversations with industry to inform possible schedules based on what is feasible rather than setting an “arbitrary date” right up front. The Army is also planning to look at up to five vendors for major subsystems or components, Jette said. He also noted the service wants to “encourage companies to bring forth technology” that may not want to be a prime contractor, but have capabilities like automated loaders and fire control systems as well as in-cab wireless connectivity. “The barrier to entry is much lower for their investment,” he said. “By going to a digital design, as most do anyway, it makes it much easier for a company to participate as an [Original Equipment Manufacturer] OEM.” https://www.defensenews.com/land/2020/02/07/army-wades-back-into-effort-to-replace-bradley-vehicle/

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  March 23, 2023 | International, Land

  Germany plans to buy Australian-made combat vehicles

  The new vehicles will replace the German Army’s Wiesel 2 armored vehicles, the government says.