September 7, 2021 | International, Aerospace, Naval, Land, C4ISR, Security
Contracts for September 3, 2021
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May 29, 2020 | International, Aerospace
F-35 Costs Drop for Building Jets But Rise for Operating Them
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29 mai 2020 à 04:00 UTC−4
The Pentagon's costliest program, Lockheed Martin Corp.'s F-35, is starting to look a little less expensive, with the latest estimate for development and procurement down 7.1% to $397.8 billion.
Less encouraging for the lawmakers who craft defense budgets and for taxpayers: Operating and maintaining the fleet for 66 years is projected to cost $1.182 trillion, a 7.8% increase over the estimate from the Pentagon's F-35 office last year, according to the Defense Department's annual assessment of the jet obtained by Bloomberg News.
The lower acquisition estimate produced by the F-35 program office is the latest in a string of good news that also includes improved on-time delivery of aircraft, the elimination of all flaws that were considered life-threatening to pilots and a steady reduction since 2018 in the number of potentially mission-crippling software deficiencies.
The Selected Acquisition Report, which hasn't been released to the public, also said the F-35 program anticipates sales over time of 809 aircraft to international partners, up from the 764 projected last year.
Cumulatively, the improvements might protect the F-35 from pressure to cut defense budgets as the federal deficit balloons due to spending for the Covid-19 pandemic. The Pentagon is already projecting mostly flat budgets through 2025.
Even under the current budget forecast, the Pentagon report discloses that previous plans to buy 94 F-35s in fiscal 2022 will be reduced by nine. The blueprint then calls for buying 94 each year in fiscal 2023 and 2024 and 96 in fiscal 2025. Those are up from the 79 requested for fiscal 2021.
The report was prepared in December before the coronavirus pandemic crippled the global economy. Lockheed announced last week that Covid-19 impacts will temporarily slow F-35 production because of subcontractor parts delays and that the Bethesda, Maryland-based company might fail to deliver as many as 24 of a planned 141 jets this year.
Earlier: Lockheed Slows F-35 Production on Covid-Related Parts Delays
More than 500 of a potential 3,200 F-35s for the U.S. and allies already have been delivered and will have to be retrofitted as flaws are fixed, at a cost of as much as $1.4 billion. The F-35 is in the final stages of intense combat testing to demonstrate it's effective against the most advanced Russian, Chinese and Iranian threats.
Lockheed spokesman Brett Ashworth said the report “highlights our ability to work with our partners to produce the world's most advanced fighter at the cost of legacy aircraft” the F-35 is intended to replace. Brandi Schiff, a spokeswoman for the Pentagon's F-35 program office, declined to comment on the report before its release.
The Pentagon assessment says that updating its numbers based on actual production performance data by Lockheed and its subcontractors, rather than projections, resulted in the reduction in acquisition cost estimates. For example, the “unit flyaway cost” of an F-35 for the Air Force's version of the fighter, not including the engine, declined by $12.1 million to $57.4 million. The Air Force plans to purchase 1,763 jets, the most of the U.S.'s planned 2,456 aircraft. The Marine Corps version dropped to $72.1 million from $80 million, and the Navy model fell to $72.3 million from $79.5 million.
None of that resolves the projected long-term trillion-dollar burden of operating and sustaining the fleet through 2077.
Outlining the stakes, then-acting Defense Secretary Patrick Shanahan said in March 2019 that “this is the largest program in DoD history and the cost of sustainment is about the same cost as nuclear modernization.”
In the new report the F-35 program office said that it “remains committed to and continues pursuing multiple efforts to drive down” those costs.
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Contract Awards by US Department of Defense - November 16, 2020
NAVY General Dynamics Electric Boat Corp., Groton, Connecticut, is awarded a $9,473,511,245 cost-plus-incentive-fee modification to previously awarded contract N00024-17-C-2117. The contract modification exercises an option for construction and test of the lead and second ships of the Columbia class SSBN 826 and SSBN 827, as well as associated design and engineering support. This modification to the integrated product and process development (IPPD) contract supports the fiscal 2021 construction start of the lead ship (SSBN 826) and advance procurement, advance construction, coordinated material buys and full construction of the follow hull (SSBN 827) in fiscal 2024. Work will be performed in Groton, Connecticut (36%); Newport News, Virginia (25%); Quonset Point, Rhode Island (17%); with other efforts performed at various sites throughout the U.S. (each less than 1%) (22%), and is expected to be completed by April 2030. Efforts within the ship include the Common Missile Compartment which is a joint U.S./United Kingdom effort. Fiscal 2021 National Sea-Based Deterrence Fund (NSBDF) funding in the amount of $545,186,307 (96%); and fiscal 2020 NSBDF funding in the amount of $19,936,251 (4%) will be obligated at the time of award and will not expire at the end of the current fiscal year. This action leverages the acquisition authorities contained in 10 U.S. Code §2218a, NSBDF. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Raytheon Co., Tewksbury, Massachusetts, was awarded a $94,039,953 cost-plus-incentive-fee, cost-plus-fixed-fee and cost-only modification to previously awarded contract N00024-17-C-5145 to exercise options and realign funding for DDG 1000 ship class integrated logistics support and engineering services. Work will be performed in Portsmouth, Rhode Island (41%); Tewksbury, Massachusetts (36%); Los Angeles, California (8%); San Diego, California (5%); Ft. Wayne, Indiana (4%); Marlboro, Massachusetts (4%); Bath, Maine (1%); and Nashua, New Hampshire (1%), and is expected to be completed by October 2021. Fiscal 2021 operation and maintenance (Navy) funding in the amount of $10,980,000 was obligated at the time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Awarded Nov. 2, 2020) The Boeing Co., Seattle, Washington, is awarded a $14,181,537 modification (P00009) to firm-fixed-price order (2017) against previously issued basic ordering agreement N00019-16-G-0001. This modification exercises options for production, delivery and installation of 24 P-8A Poseidon Increment III Block I retrofit kits for the Navy. Work will be performed in Seattle, Washington (98.7%); and Mesa, Arizona (1.3%), and is expected to be completed in November 2022. Fiscal 2021 aircraft procurement (Navy) funds for $14,181,537 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Progeny Systems Corp., Manassas, Virginia, is awarded a $9,428,513 cost-plus-fixed-fee and cost-reimbursable modification to previously awarded contract N00024-19-C-6267 to exercise options for engineering services. Work will be performed in Manassas, Virginia, and is expected to be completed in December 2021. Fiscal 2020 shipbuilding and conversion (Navy) (88%); and fiscal 2021 research, development, test and evaluation (Navy) (12%) funding in the amount of $3,900,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. AIR FORCE Lockheed Martin Corp., Fort Worth, Texas, has been awarded a $53,190,386 hybrid cost-plus-fixed-fee and firm-fixed-price modification (P00067) to contract FA8615-12-C-6016 for miscellaneous support for 50 retrofit aircraft to the Taiwan F-16 Peace Phoenix Rising program. This modification provides for contractor over and above support and acquisition of legacy aircraft hardware and equipment. Work will be performed in Fort Worth, Texas; and Taiwan, and is expected to be completed Dec. 31, 2023. Foreign Military Sales funds in the full amount are being obligated at the time of award. The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity. CORRECTION: The contract awarded on Oct. 30, 2020, to BAE Systems Technology Solutions & Services Inc., Rockville, Maryland, for $13,365,920, listed the incorrect contract number. The correct contract number is FA8720-21-F-0042. DEFENSE LOGISTICS AGENCY Outdoor Venture Corp.,** Stearns, Kentucky, has been awarded a maximum $37,464,448 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the Modular General Purpose Tent System and components. This was a competitive acquisition with two responses received. This is a one-year base contract with four one-year option periods. Location of performance is Kentucky, with a Nov. 4, 2021, ordering period end date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-21-D-1404). *Small business **Small business in historically underutilized business zones https://www.defense.gov/Newsroom/Contracts/Contract/Article/2416815/source/GovDelivery/