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March 23, 2020 | International, Aerospace

Editorial: Why Coronavirus Cannot Kill Aviation

Not long ago, the biggest concern facing commercial aviation was whether Airbus and Boeing could produce enough aircraft to keep up with demand. Industry leaders fretted about how quickly they could ramp up production and whether the supply chain could keep pace. Some airlines were equally bullish, with American Airlines CEO Doug Parker proclaiming: “I don't think we're ever going to lose money again.”

After a run of unparalleled and seemingly unstoppable prosperity, aviation and aerospace have flown into a perfect storm. The temporary shutdown of Boeing's 737 MAX production line has waylaid aerospace suppliers. But that pales in comparison to the impact of the coronavirus pandemic, which first crippled a crucial growth engine, China, and is now decimating air transport markets around the world.

Each day brings a new round of fleet groundings, layoffs and order deferrals or cancellations, which in the coming months will rip through the manufacturing industry like a tornado. A new forecast from Europe projects Airbus will be forced to cut planned production nearly in half in 2021 and may not fully recover before 2027. Boeing is calling on the U.S. government to provide at least $60 billion in aid to aerospace manufacturers, U.S. airlines want another $58 billion, airports $10 billion and the maintenance, repair and overhaul industry $11 billion. It would not be hyperbole to call this the greatest crisis civil aviation has faced since the dawn of the commercial jet age more than six decades ago.

But amid such panic, we need to take a deep breath and remember that this industry has survived many big challenges: oil price spikes; the Sept. 11, 2001, terrorist attacks; the Severe Acute Respiratory Syndrome; and the 2008-09 global financial meltdown. Each time commercial aviation has recovered and grown stronger, resuming its long-held trend of outpacing global economic growth.

In one way, the disruption to our lives and businesses caused by the travel restrictions imposed to control the spread of COVID-19 illustrates the degree to which the world has come to rely on air transportation, from enabling commerce to connecting families. This is a crisis on an unprecedented scale for aviation, and there are airlines and businesses that certainly will not survive. But the extent of the disruption gives hope that demand for air transportation will return unabated once the restrictions are lifted.

It is vital for governments, lawmakers and industry leaders to recognize that aviation will need help getting through such destructive upheaval. But in some cases, the optics will invite legitimate criticism. For example, Boeing has returned nearly $50 billion to its shareholders over the past five years while investing far less. Now it wants taxpayers to cough up tens of billions for a bailout? U.S. airlines are no better: They have sent 96% of free cash flow to shareholders over the last five years. And what about those airlines in Europe that should have been allowed to die long ago? Will they use this crisis as leverage for yet another government rescue?

Clearly, there are lessons to be learned from the crisis, and a return to business as usual will not suffice. But in the near term, this is not about partisan politics or competitive advantage. It is about helping a vital industry survive this calamity. Commercial aviation is a connective tissue that underpins global commerce, drives prosperity and supports many millions of jobs. Allowing it to wither is not a realistic option. The coming days will be dark, but rest assured the industry will recover and once again prosper.

https://aviationweek.com/aerospace/editorial-why-coronavirus-cannot-kill-aviation

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  • Contract Awards by US Department of Defense - May 23, 2019

    May 24, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

    Contract Awards by US Department of Defense - May 23, 2019

    AIR FORCE Raytheon Co., Tucson, Arizona, has been awarded a $355,493,640 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for AGM-88B High Speed Anti-Radiation Missiles (HARM)/Replacement Exchange In-Kind (REIK) for HARM Control Section Modification (HCSM). This contract provides for the refurbishment of live AGM-88Bs and conversion of AGM-88B into Captive Air Training Missiles (CATM-88B) for approved Foreign Military Sales countries. Work will be performed in Tuscon, Arizona, and is expected to be complete by 2027. This contract involves foreign military sales to Qatar, Taiwan, and Bahrain. Additional countries may be added after contract award. This award is the result of a sole-source acquisition. Fiscal 2019 Foreign Military Sales funds in the amount of $76,074,315 is being obligated on a delivery order at the time of award. The Air Force Life Cycle Management Center, Warner Robins, Georgia, is the contracting activity (FA8520-19-D-0002). Pride Industries, Roseville, California, has been awarded a $19,902,284 firm-fixed-price modification to previously awarded contract FA4484-17-D-0005 for base operations services. This modification provides for the exercise of the second option period out of four. Work will be performed at Joint Base McGuire-Dix-Lakehurst, New Jersey, and is expected to be complete by May 31, 2020. This modification brings the total cumulative face value of the contract to $59,441,361, and fiscal 2019 operations and maintenance funds are being obligated on individual task orders. The 87th Contracting Squadron, Joint Base McGuire-Dix-Lakehurst, New Jersey, is the contracting activity. Lockheed Martin Corp., Lockheed Martin Aeronautics, Fort Worth, Texas, has been awarded a $16,387,853 cost-plus-fixed-fee modification (P00061) to previously awarded contract FA8615-12-C-6016 for a variety of support to the Taiwan F-16 Peace Phoenix Rising program. This contract modification provides for miscellaneous support work identified during performance of the in-country aircraft modification program, use and maintenance of product support aircraft, and additional support necessary for the successful completion of modification installs. Work will be performed in Fort Worth, Texas; and Taiwan, and is expected to be complete by May 31, 2023. This modification involves 100 percent foreign military sales to Taiwan, and Foreign Military Sales funds in the full amount are being obligated at the time of award. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. Central Coast Water Authority, Buellton, California, has been awarded a $7,929,102 delivery order (FA4610-19-FA038) under previously awarded contract F04684-92-D-0013 for California State Water. This delivery order provides Vandenberg Air Force Base and outlying municipalities with potable water. Work will be performed at Vandenberg Air Force Base, California, and is expected to be complete by 2032. This delivery order brings the total cumulate face value of the contract to $157,514,286. Fiscal 2019 operations and maintenance funds in the full amount are being obligated at the time of award. The 30th Contracting Squadron, Vandenberg AFB, California, is the contracting activity. NAVY BAE Systems Technology Solutions and Services Inc., Rockville, Maryland, is awarded an $84,341,597 indefinite-delivery/indefinite-quantity contract for up to 898,320 man-hours of direct labor engineering services. These services are in support of the Naval Air Warfare Center Aircraft Division's Special Communications Mission Solutions Division to perform projects for Special Operations Forces command, control, communications, computers, combat systems, and intelligence, surveillance, and reconnaissance systems. Services include requirements definition, solution definition, integration, installation verification and validation, and operation and sustainment. Work will be performed in California, Maryland (70 percent); St. Inigoes, Maryland (13 percent); Fayetteville, North Carolina (6 percent); Little Creek, Virginia (5 percent); Coronado, California (4 percent); and Tampa, Florida (2 percent), and is expected to be completed in May 2024. No funds are being obligated at time of award; funds will be obligated on individual orders as they are issued. This contract was competitively procured via an electronic request for proposals; three offers were received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-19-D-0055). Deloitte Consulting LLP, Arlington, Virginia, is awarded $63,701,527 for a cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract with firm-fixed-price ordering provisions for business and technology management support services required to facilitate the overall Transformation Management Support Services effort in support of the Deputy Chief of Naval Operations (Manpower, Personnel, Training and Education (MPTE), OPNAV N1, and subordinate commands. The contract is a five-year base ordering period with no options. All work will be performed in Arlington, Virginia. The ordering period is expected to be completed by May 2024. Fiscal 2019 operations and maintenance funds (Navy) in the amount of $10,000 will be obligated to fund the contract's minimum amount, and funds will expire at the end of the current fiscal year. This contract was competitively procured with the solicitation posted to the Federal Business Opportunities website, with four offers received. Naval Supply Systems Command Fleet Logistics Center Norfolk, Contracting Department, Philadelphia Office, Philadelphia, Pennsylvania, is the contracting activity (N00189-19-D-Z023). C.E.R. Inc.,* Baltimore, Maryland (N40080-18-D-0016); EGI HSU JV LLC,* Gaithersburg, Maryland (N40080-18-D-0017); G-W Management Services LLC,* Rockville, Maryland (N40080-18-D-0018); Huang-Gaghan JV Inc.,* Alexandria, Virginia (N40080-18-D-0019); Kunj Construction Corp.,* Mechanicsville, Virginia (N40080-18-D-0020); Ocean Construction Services Inc.,* Virginia Beach, Virginia (N40080-18-D-0021), are awarded Option One under a previously awarded, firm-fixed-price, multiple award construction contract for construction projects located primarily within the Naval Facilities Engineering Command (NAVFAC) Washington, District of Columbia, area of operations (AO). The combined total value of all six contractors is $49,500,000. After award of this option, the total cumulative contract value will be $99,000,000. Work will be performed at various administrative facilities within the NAVFAC Washington, District of Columbia AO, including but not limited to, Maryland; Washington, District of Columbia; and Virginia, and is expected to be completed May 29, 2020. No funds will be obligated at time of award; funds will be obligated on individual task orders as they are issued. Task orders will be primarily funded by military construction (Navy); operations and maintenance (Navy and Marine Corps); and Navy working capital funds. NAVFAC Washington, Washington, District of Columbia, is the contracting activity. Thoma-Sea Marine Constructors LLC,* Lockport, Louisiana, is awarded an $11,638,510 firm-fixed-price contract for the purchase and conversion of one existing offshore supply vessel into an Atlantic Undersea Test and Evaluation Center range support vessel (ARSV). The ARSV will perform ocean engineering and range support in the launch, recovery and deep ocean mooring installation and maintenance of remote operated vehicles, unmanned underwater vehicles, and autonomous underwater vehicles. The ARSV will be operated for multiple days at sea, which will permit researchers onboard to remain on station at remote locations for multiple days to collect data, deploy scientific equipment, and perform scientific calculations. Work will be performed in Lockport, Louisiana, and is expected to be completed by January 2020. Fiscal 2019 research, development, test and evaluation (Navy) funding in the amount of $11,638,510 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with one offer received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-2205). Diversified Maintenance Systems Inc.,* Sandy, Utah, is awarded a maximum amount $10,000,000 indefinite-delivery/indefinite quantity contract for other specialty trade contractors construction alterations, renovations, and repair projects at Naval Air Facility El Centro. Projects will be primarily design-bid-build (fully designed) task orders or task order with minimal design effort (e.g. shop drawings). Projects may include, but are not limited to, alterations, repairs, and construction of electrical, mechanical, painting, engineering/design, paving (asphaltic and concrete), flooring (tile work/carpeting), roofing, structural repair, fencing, HVAC, and fire suppression/protection system installation projects. Work will be performed in El Centro, California. The term of the contract is not to exceed 60 months with an expected completion date of May 2024. Fiscal 2019 operations and maintenance (Navy) contract funds in the amount of $5,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by operations and maintenance (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website, with seven proposals received. The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-19-D-2623). Detyens Shipyards Inc., North Charleston, South Carolina, is awarded an $8,929,671 firm-fixed-price contract for a 50-calendar day shipyard availability for the mid-term availability of USNS Lenthall (T-AO 189). Work will include general services, diesel fuel marine contaminated tank bottom replacement, vent plenum steel replacement and preservation, main engine intercooler cleaning, switchboard and motor control center cleaning, recondition air conditioning motors, cable bulkhead collar magna rock replacement, diesel fuel marine cargo piping repairs, armory air conditioning replacement, constant tension winch No. 2, No. 3 and No. 4 overhaul, fire and aqueous film forming foam piping replacement, fire damper inspection and repairs, steel replacement and recoating. The contract includes options which, if exercised, would bring the total contract value to $9,004,671. Funds will be obligated on May 23, 2019. Work will be performed in Charleston, South Carolina, and is expected to begin on July 15, 2019, and be completed by Sept. 2, 2019. Fiscal 2019 operations and maintenance (Navy) contract funds in the amount of $8,929,671, are obligated at the time of award. Funds will expire at the end of the current fiscal year. This contract was competitively procured with proposals solicited via the Federal Business Opportunities website, with three offers received. The Navy's Military Sealift Command, Norfolk, Virginia, is the contracting activity (N3220519C4014). BAE Systems Land and Armaments L.P., Minneapolis, Minnesota, is awarded an $8,924,330 cost-plus-fixed-fee contract for engineering services and waterfront services in support of the MK 45gun mount providing engineering, technical, logistics services and technical data to support the MK 45 5” Gun system design, development, fabrication, production, operation and integration. This contract includes options which, if exercised, would bring the cumulative value of this contract to $35,058,494. Work will be performed in Navy fleet concentration areas (various locations) (70 percent); Minneapolis, Minnesota (15 percent); and Louisville, Kentucky (15 percent), and is expected to be completed by May 2020. If all options are exercised, work will continue through September 2022. Fiscal 2019 operations and maintenance (Navy); fiscal 2019 weapons procurement (Navy); and fiscal 2013 and 2014 shipbuilding and conversion (Navy) funding in the amount of $3,178,794 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured, in accordance with 10 U.S. Code 2304(c)(1), only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-5301). ARMY Aura Technologies LLC,* Raleigh, North Carolina, was awarded a $49,997,256 hybrid (cost-plus-fixed-fee and firm-fixed-price) contract for Small Business Innovation Research in support of advanced manufacturing environments. One bid was solicited with one bid received. Work locations and funding will be determined with each order, with an estimated completion date of May 22, 2024. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911NF-19-D-0004). B.L. Harbert International LLC, Birmingham, Alabama, was awarded an $18,481,835 firm-fixed-price contract for to construct Secure Compartmental Information Facility at Camp Humphreys, Republic of Korea. Bids were solicited via the internet with six received. Work will be performed in Pyongtaek, Republic of Korea, with an estimated completion date of July 30, 2021. Fiscal 2018 host nation (Korea) funds in the amount of $18,481,835 were obligated at the time of the award. U.S. Army Corps of Engineers, Camp Humphreys, Republic of Korea, is the contracting activity (W912UM-19-C-0002). Tribalco LLC, Bethesda, Maryland, was awarded a $14,425,217 firm-fixed-price Foreign Military Sales (Iraq) contract for computer hardware, services and MEMEX software. One bid was solicited with one bid received. Work will be performed in Bethesda, Maryland, with an estimated completion date of May 22, 2020. Fiscal 2019 Foreign Military Sales funds in the amount of $14,425,217 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W91CRB-19-C-5024). IDSC Holdings LLC, Snap-On Industrial, a division of IDSC Holdings LLC, Kenosha, Wisconsin, was awarded an $11,434,752 firm-fixed-price contract for the General Mechanic's Tool Kit. Bids were solicited via the internet with three received. Work will be performed in Kenosha, Wisconsin, with an estimated completion date of Nov. 30, 2019. Fiscal 2019 Army working capital funds in the amount of $11,434,752 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-18-D-0079). Howard W. Pence Inc.,* Elizabethtown, Kentucky, was awarded an $8,825,159 firm-fixed-price contract for the construction of a Special Operations Forces air-and-ground integration urban live fire range. Bids were solicited via the internet with two received. Work will be performed in Fort Campbell, Kentucky, with an estimated completion date of Nov. 18, 2020. Fiscal 2019 military construction funds in the amount of $8,825,159 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W91Q2R-19-C-0017). DEFENSE LOGISTICS AGENCY General Dynamics, Williston, Vermont, has been awarded a maximum $42,443,476 firm-fixed-price contract for gun barrels. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a three-year contract with no option periods. Locations of performance are Vermont and Maine, with a May 22, 2022, performance completion date. Using military services are Air Force and Army. Type of appropriation is fiscal 2019 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7LX-19-D-0133). Real-Time Laboratories LLC, Boca Raton, Florida, has been awarded a maximum $10,776,057 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for linear direct valves. This was a sole-source acquisition using justification 10 U.S. Code 2304(c)(1), as stated in Federal Acquisition Regulation 6.302-1. This a five-year contract with no option periods. Location of performance is Florida, with a May 29, 2024, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2024 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-19-D-0074). *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1856970/source/GovDelivery/

  • Air Force mulls remote control of drone wingmen

    February 13, 2023 | International, Aerospace

    Air Force mulls remote control of drone wingmen

    Air Force Chief of Staff Gen. CQ Brown said future budgets will show the service is committed to new forms of uncrewed aircraft.

  • Getting Brexit Done Brings Defense Challenges

    December 17, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

    Getting Brexit Done Brings Defense Challenges

    Tony Osborne Boris Johnson's election landslide on Dec. 12 makes Brexit on Jan. 31 a certainty. But as the chants of “Get Brexit Done”—a slogan used by the Conservative party in their election messaging—fade away, Britain's place in the world appears infinitely more vulnerable. Johnson's parliamentary majority means he can now sweep aside any opposition to pursue his vision of Brexit. But he was not the only victor. The Scottish National Party secured 48 of Scotland's 59 seats, which the party says is a mandate for a second independence vote. If it were to succeed, there would be far-reaching consequences to Britain's national defense capability. Scotland is home to strategically important air bases and, most significantly, the UK's Trident-based nuclear deterrent. Johnson is unlikely to approve such a referendum at least in the short-term, but the Scottish nationalists could make life difficult for his government, and preventing a referendum could be seen as undemocratic. The complexities of having Northern Ireland as the only part of the UK to share a land border with an EU country, the Republic of Ireland, mean that after a Brexit there will be a border in the Irish Sea between Northern Ireland and the rest of the UK. This, too, could have security implications and lead to renewed violence from unionist groups, as they see their political influence being eroded. Nationalists see an opportunity for a united Ireland once again. There is also uncertainty about the futures of Gibraltar and Diego Garcia. Exiting the EU means British security forces no longer will be linked to EU databases on criminals, organized crime and terror. Questions also have arisen about Russia's influence in the British democratic process, with Johnson suppressing publication of an intelligence report on Russian infiltration in British politics during the election run-up. And there is a fiscal aspect as well. Since the Brexit vote in 2016, Britain's GDP has begun to stagnate as economic output and investments fall away. National debt also is rising. The British Parliament's own analysis suggests GDP could be 7% lower over the next 15 years than without Brexit, and even with a free-trade agreement established with Europe. Questions then would arise about whether Britain could afford to maintain military spending. Currency fluctuations will affect big-budget programs such as the ongoing purchase of the Lockheed Martin F-35 Joint Strike Fighter (JSF). Britain is one of a handful of NATO countries with defense spending at or above NATO's target of 2% of GDP. The Conservative manifesto published in the run-up to the election calls for this to increase by at least 0.5% above inflation every year. Britain's defense budget for 2019-20 was £39.5 billion ($52.7 billion), and this will rise to £41.3 billion for 2020-21. The government will maintain and renew the Trident nuclear deterrent but also support the defense industry with “ambitious global programs,” including local construction of Type 31 frigates and local production of the Boxer armored vehicle. In December, the Royal Navy commissioned the second new Queen Elizabeth-class aircraft carrier, HMS Prince of Wales, in a further step toward restoring the country's carrier capability. Following operational trials in the fall off the Eastern U.S., more are planned around the UK during 2020, paving the way for the first operational deployment in May 2021. The UK plans to have 35 F-35s in service by the end of 2022, and the government has committed to buying all of the 138 F-35s it planned to purchase when it joined the JSF program in the early 2000s. Whether that commitment is met and if the UK will purchase additional variants could be determined in a strategic defense and security review planned for 2020. With the retirement of the Panavia Tornado last March, the Eurofighter Typhoon fleet has become the heavy-lifter of the UK's air defense mission and is continuing air strikes against Islamic State group sites in Iraq and Syria along with the UK's MQ-9 Reaper unmanned aircraft systems. The UK now is stepping up development of a Typhoon replacement for the mid-2030s with the Tempest future combat air system, supported by Italy and Sweden. More nations could join in 2020, with Japan a key target. And with delivery of the first of nine Boeing P-8 maritime patrollers, the UK is back in the long-range antisubmarine-warfare business, with an initial operating capability expected in April. https://aviationweek.com/defense-space/getting-brexit-done-brings-defense-challenges

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