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September 2, 2020 | International, Aerospace

F-35 program costs are evolving, and these savings matter

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Last month, Congress held an oversight and accountability hearing regarding the F-35 Joint Strike Fighter's burdensome logistical IT system. The Department of Defense Office of Inspector General reported earlier this year that millions of additional dollars were spent in the form of labor hours by military personnel who manually tracked the plane's spare parts since its electronic logistical system didn't. The congressional review was undoubtedly warranted, especially as the F-35 program office phases in a newer system over the next two years to replace its legacy IT platform.

But noticeably absent from this testimony, was a more fulsome discussion (and understanding) about the affordability of the program and how both acquisition costs and the price to fly the aircraft are significantly trending downward at a time that matters most.

In an era of increased military competition against peer adversaries and during a period of tremendous budgetary constraints in the United States, incremental savings across a large enterprise such as the F-35 program matter. The Defense Department understands this well. It has smartly leveraged its buying power, driving down the cost of each F-35A to approximately $80 million one year earlier than planned — now costing taxpayers less than some of the less capable fourth-generation aircraft, and on a par with others. The F-15EX, for example, costs nearly $88 million, and gives our forces no help in a fifth-gen fight.

Why spend more for less? This is critical because over the next five years, the number of F-35s purchased will more than double to approximately 1,200 aircraft. That translates to increased capacity and capability for the United States and its allies as they operate in the Indo-Pacific and European theaters.

Congress recognizes that the costs to acquire the aircraft have been significantly reduced, and it has now rightfully turned its attention to the costs associated with sustaining the aircraft. But most lawmakers missed the opportunity during July's hearing to more fully explore a key statement made by the F-35′s prime contractor, Lockheed Martin.

Lockheed announced that it has reduced its share of the aircraft's sustainability cost per flying hour over the past five years by nearly 40 percent, plummeting the costs to fly the aircraft to nearly $5,000 less each hour than earlier hourly costs.

The company says it has invested hundreds of millions of dollars to build state-of-the-art tools, analytics, machine learning and artificial intelligence, which has led to labor efficiency gains as well as improvements to supply response times and data quality. The company implemented robust asset management tools and robotic automation to eliminate manual tasks, while placing a concerted focus on improving the reliability of aircraft parts to meaningfully reduce future repair requirements and material costs.

This is significant because the number of hours flown each year will increase by approximately 140,000 hours over the next five years alone. Those savings add up.

And more can be done. The F-35′s manufacturer believes it can further drive down its cost share to fly the aircraft by approximately an additional 50 percent. This is all the more significant when considering that the military services and aircraft's engine maker, Pratt & Whitney, are responsible for more than one-half of the total sustainment costs of the program.

If a similar level of savings can be achieved by the Air Force, Navy, Marine Corps, and Pratt & Whitney, those savings can be confidently reinvested back into the program to ensure enough aircraft are being procured to deter and, if necessary, fight our adversaries. As the military services and foreign countries consider future threats and the capabilities needed to impede adventuresome opponents, these savings matter.

These savings come at the same time the DoD reports that the aircraft's mission-capable rate has increased from the mid-50th percentile to the low 70th percentile from just a couple of years ago. And further improvements in the aircraft's mission-capable rate should be forthcoming as repair backlogs and mismatched spare parts are corrected by a new IT logistical system.

A theoretical military principle suggests that steady quantitative changes can lead to a sudden, qualitative leap. After many, many years of sustained focus to drive down F-35 costs, the program may be representative of that maxim and allow the Defense Department to fully realize the advantages of the F-35′s gamechanging technologies.

Steven P. Bucci is a visiting fellow at The Heritage Foundation. He previously served as a U.S. Army Special Forces officer and is a former deputy assistant secretary of defense for homeland defense. The Heritage Foundation takes no funding from any government. It does take donations from corporate entities, which average about 4 percent of their total funding in any given year. The think tank reports it does not take a position based on donations, nor do donors have editorial input..

https://www.defensenews.com/opinion/commentary/2020/09/01/f-35-program-costs-are-evolving-and-these-savings-matter/

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    OCEAN2020, a European Defence Fund initiative, will boost technological research in the naval domain also by the integration of unmanned platforms in surveillance and interdiction missions Leonardo is a leader in systems integration and will lead a team of 42 partner companies including Saab, Safran, PGZ and MBDA, research bodies such as NATO CMRE and the defence ministries of five countries The first operational demonstration will take place in 2019 in the Mediterranean Sea. The demo will involve Leonardo's ‘Hero' and ‘Solo' unmanned helicopters, naval vessels and systems from a number of partners, including Italian Navy's vessels equipped with Leonardo's systems Leonardo was awarded the most important project related to the first European Defence Found's initiative, OCEAN2020, to boost Europe's defence capabilities, issued by the European Union under the ‘Preparatory Action on Defence Research' programme. The competitive selection was conducted by the European Defence Agency and will be contracted in the coming weeks. The OCEAN2020 team, which will be led by Leonardo, comprises 42 partners from 15 European countries. These include the Ministries of Defence of Italy, Greece, Spain, Portugal and Lithuania, with additional support from the Ministries of Defence of Sweden, France, the United Kingdom and Estonia and the Netherlands. European industrial partners include Indra, Safran, Saab, MBDA, PGZ/CTM, Hensoldt, Intracom-IDE, Fincantieri and QinetiQ. A number of research centres include Fraunhofer, TNO, CMRE (NATO) and IAI. “We are extremely pleased with this result, the OCEAN2020 initiative has a high level of strategic and technological-operational value” said Alessandro Profumo, CEO of Leonardo. “It is the leading technological research project dedicated to the very topical issue of maritime surveillance, which is of interest across Europe and to the Mediterranean region in particular. This success has been made possible thanks to the strong collaboration between all 42 team partners which we have the honour to lead.” OCEAN2020 is the first example of a cross-European military research programme to-date. The Leonardo-led bid required a thorough analysis of operational requirements and a technologically-innovative yet operationally-realistic proposal. The research project also will see the integration of unmanned platforms in surveillance and interdiction missions. The success in winning the tender both highlights, and will enhance, Leonardo's strength in naval products and integrated systems. The company's expertise in the domain includes command and control systems, unmanned aircraft, sensors, helicopters for naval applications, communications and weapon systems, on the surface and underwater. OCEAN2020 will see unmanned platforms of different type (fixed wing, rotary wing, surface and underwater) integrated with naval units' command and control centres, allowing for data exchange via satellite, with command and control centres on land. The joint and cooperative use of both manned and unmanned vehicles will also be demonstrated as part of the project. Leonardo would like to thank the Italian Navy which, as a key OCEAN2020 partner, has and will continue to make important contributions to the project. This includes the development of operational scenarios and making available naval assets and helicopters, which will take part in demonstrations. In addition to complex simulation work, OCEAN2020 project will involve two live demonstrations of maritime surveillance and interdiction operations, conducted by European fleets using unmanned aircraft, surface vessels and underwater systems. The first demo, scheduled to take place in the Mediterranean Sea in 2019, will be coordinated by the Italian Navy and will see Leonardo's ‘Hero' and ‘Solo' unmanned helicopters operate from Italian naval units alongside other European partners. The second demonstration, which will take place in 2020 in the Baltic Sea, will be coordinated by the Swedish Navy. The data collected by various systems during these two demos will be processed and sent to a prototype European command and control centre in Brussels. http://www.leonardocompany.com/en/-/ocean-2020

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