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May 5, 2020 | International, Naval

Fincantieri CEO on winning the US Navy’s frigate competition

By: Tom Kington

ROME — As CEO of Italy's state-controlled Fincantieri since 2002, Giuseppe Bono, has built cruise, merchant and naval vessels, including the FREMM frigate, for the Italian navy. Last week the type was picked by the U.S. sea service for its newest frigate, the FFG(X), in a deal worth $5.58 billion if options for nine vessels are exercised after the first ship. The FFG(X) will be produced at Wisconsin's Marinette Marine shipyard, which Fincantieri bought in 2008 and where it already builds Freedom-class Littoral Combat Ships for the U.S. Navy and Saudi Arabia with Lockheed Martin.

In an interview with Defense News, Bono explained why FREMM beat off the competition, why shipyards should always be prime contractors, and why building cruise ships makes you punctual.

What are the reasons you won this competition?

In the U.S., more than elsewhere, the quality-price ratio was crucial. And our vessel fit the requirement. The U.S. wanted a ship with anti-submarine capability and this ship is unique in its class because it has that capability. The other competitors offered ships derived from other designs. The customer also wanted a ship which was already at sea. In a way we were lucky. On paper, the other offerings might have been great, but we are operational. Our proposal was also more complete because the design is extremely flexible thanks to the possibility of fitting different defense systems. We had also studied an AEGIS version of the FREMM with Lockheed Martin and knew it would not need large, structural work.

What was your reaction when you heard you had won?

My colleagues were more emotional about than me. I pursue objectives and strategy.

You teamed with Lockheed Martin on the LCS program but here you went alone.

We never considered a U.S. partner. This bid was different to the past, with a new approach. In this case the shipbuilders were candidates to be prime contractors. And with a track record with 16 LCS orders for the U.S. and four for Saudi Arabia we are an American shipyard, this time with an Italian design. We have worked very well with Lockheed Martin, but as prime contractor on the Littoral Combat Ship it was the point of contact with the customer, meaning the yard was a step back and that sometimes led to a short circuit. When the shipyard is speaking to the customer as prime, it facilitates the relationships and leads to a better product and lower prices because certain decisions can be made faster.

You will, however, work with U.S. firm Gibbs and Cox on the FFG(X).

Gibbs and Cox frequently works with the U.S. Navy and knows its needs perfectly. We have a long and positive experience working with them on the LCS and we teamed with them to adapt the FREMM for the U.S. Navy.

As work gets underway at Marinette will you need to hire new workers and make further infrastructure improvements?

A lot of the work we needed to do at Marinette has already been done. When we first took over, in a springtime, we were shocked to find that the forecourts were muddy due to snowmelt. Now we have paved them over and increased efficiencies in terms of the yard's layout. We will need to find extra space because the FFG(X) will overlap with LCS construction, but we have shown we can build two FFG(X) vessels simultaneously as well as LCS vessels at Marinette. That said, depending on future programs, if the opportunity arose to buy a new yard, we will consider it. We would not be against the possibility, but it is not an issue now.

There have been some legislative provisions requiring Buy American for certain FFG(X) components. How will this affect you going forward on this ship?

On the LCS there are a number of Italian components, albeit a very limited number. The vessel also has Rolls Royce gas turbines, not GE, showing that price and quality always win out. On the LCS, the four diesel sets for power generation were built by our subsidiary Isotta Fraschini Motori. They are also on the Italian FREMMS. Now we will see if they can be used on the U.S. vessels.

The Freedom LCS class experienced delays at the outset. How are you going to try and avoid that for FFG(X), understanding that there are always challenges with a first-of-class ship?

There is a difference between a ship and other platforms like an aircraft or an helicopter. A ship does not have a prototype, only the first in class. The prototype of a ship becomes operational. This means the first vessel needs more time than the successive ships. On the LCS program the construction time sped up and prices fell as it accelerated.

Is this the biggest ever win for an Italian firm in the U.S. defense market?

Yes, I think so. It the result of working well and showing you are serious, of delivering on time and on budget. All these aspects are strongly taken into account by the customer and they give you an advantage. This is fundamental and one of our characteristics, derived in part from our work on cruise ships, which are built on a turnkey basis. The discipline there is unique. You need to deliver on a specific day which is established years earlier, otherwise the penalties never stop. Being punctual is in our DNA. Add to that we are always prime contractor, and a cruise ship is no less complex than a naval ship. In the military sector, delivering on time happens rarely. There are many examples of delays in some countries which can be almost infinite.

Turning to Europe, there is ongoing consolidation in the German shipbuilding sector. How does that affect your plans to launch a type of European naval Airbus with French yard Naval Group?

With Germany we have a consolidated and long-standing partnership related to the submarine sector. Consolidation must happen in Europe if it wants to count for something in the world, for this reason our goal must be a common defence. There are four of five major yards in the U.S. We cannot think of having more than that in Europe. We must consolidate.

https://www.defensenews.com/global/europe/2020/05/04/interview-fincantieri-ceo-bono-on-winning-the-us-navys-frigate-competition/

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  • Japan Accelerates Its Defense Buildup

    January 14, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

    Japan Accelerates Its Defense Buildup

    by Milton Ezrati Tokyo will begin to alter the security equation in the Western Pacific in the not-too-distant future. Long pacifist, Japan has decided to accelerate its military spending and effectively begin to gear up. It should hardly come as a surprise. Though Prime Minister Shinzo Abe has long sought to shift Japan from pacifism to what he calls a “normal country,” North Korea's missiles and China's aggressiveness in the Pacific would have left Tokyo little choice anyway. Spending has stepped up dramatically, as has planning. The nature of the buildup responds to other pressures from its great ally, the United States, which wants Japan to buy more U.S. equipment, as well as from the demographic and technological imperatives facing that nation. Even now, some seventy-two years after Douglas MacArthur directed the writing of the then defeated Japan's constitution, the document still limits the country's room to maneuver. Spending cannot exceed 1.0 percent of gross domestic product (GDP). Though clever accounting allows wiggle room, this rule nonetheless imposes a severe constraint especially next to China and the United States, each of which spend more than 3.0 percent of their much larger GDPs on defense. Because the constitution stresses defense exclusively, it naturally questions any preparation to project power, not the least the Ministry of Defense's (MoD) intention to construct two aircraft carriers and possibly base Japanese ground forces outside the country. The constitution also forbids Japan entering any mutual defense pact. Despite Japan's long-term alliance with the United States, it cannot go to America's aid if, for instance, a U.S. base in Asia was attacked. Prime Minister Abe has strived to change the constitution and has won concessions, but it remains a constraint. The MoD budget requests for 2019 nonetheless make clear the new military emphasis. According to documents published in September, the MoD is asking for ¥5.3 trillion ($48 billion) in overall defense outlays, which is 7.2 percent above the 2018 budgeted amount. A jump like that would be noteworthy in any country, but especially so in Japan, where heretofore defense spending grows by fractions of a percent per year. Five-year plans would sustain this heightened level of spending. Still more interesting is the proposed allocation of these funds. Here, each point reflects the various pressures on Japan. North Korea's presence is probably most evident. The budget document emphasizes on “deterrence,” which no doubt lies behind the decision to upgrade the electronic warfare capability of Japan's existing F-15 fighter jets and purchase six F-35A fighters from Lockheed Martin. New plans call for purchases of 147 of these new fighters over the next few years, well above the original plan to buy forty-two of them. U.S. pressure is also clearly evident in this decision, as it will preclude purchase of the domestically developed F-2 fighter. In the words of one Japanese security analyst, Masahiro Matsumura, Japan's “defense industry is being sacrificed for the political goal of maintaining good Japan-U.S. relations.” Less controversial but also clearly aimed at the North Korean threat, the budget calls for Japan to upgrade its airborne early warning capability and spend nearly ¥300 billion ($2.7 billion) to deploy two land-based Aegis missile defense systems (“Aegis Ashore”) and other U.S. manufactured missile interceptors. Measures to counter China, at sea mostly, make a longer list. Of course, the F-15 upgrades and the new F-35s constitute something of an answer to China. More pointed are MoD plans to procure RQ-40 Global Hawk long distance drones, fund research to develop a long-distance undersea unmanned surveillance device, and otherwise enhance naval heft by procuring more anti-air missile and anti-torpedo ammunition as well as more standoff missiles. Plans also call for the construction of a new submarine, aimed, in the words of MoD budget documents, at “detections, etc.” (The etcetera no doubt refers to offensive capabilities that might raise constitutional questions.) Japan also has plans to construct two new multipurpose, compact destroyers that can also sweep mines. They will bring the fleet escort force to a total of fifty-four vessels—a considerable upgrade from the past. More controversial from a constitutional standpoint are other efforts that would: 1) enable the military to project power and 2) obligate Japan to its allies. The MoD seeks to procure a tanker to support the navy at sea, a clear statement that Japanese naval power has gone beyond coastal defense. The ministry also seeks two new C-2 transport aircraft and six more UH-X helicopters specifically aimed at rapid deployments. Also, it seeks a training budget to ready Japanese ground forces for more distant deployments. The ministry also seeks to refit an existing helicopter carrier over the next few years to carry some of the new F-35 fighters and then build a second carrier. In some interpretations, this clearly violates the self-defense strictures in Japan's constitution, though the prime minister and the MoD have couched the requests in defensive terms. In what also might constitute a further violation of the constitution, the ministry has asked for concessions to allow greater integration of Japanese command, control, and planning with allies, the United States, obviously, but also India, Australia, and ASEAN, in other words those nations trying to check Chinese expansion. Beyond these obvious countermeasures to North Korea and China, the MoD has also emphasized the need for modernization. It has set aside funds to establish what in the United States might describe as a cyber-defense command and to investigate the military use of artificial intelligence (AI). In a similar vein, the ministry has dedicated development funds to eventually install protections for Japan's satellites, including an optical telescope with which to identify objects flying nearby. It has further dedicated a not insignificant ¥2.7 billion ($24 million) to work with the United States on what it calls “deep space international awareness.” Not only do these efforts capture further needs, but the budget document emphasizes that the military will help Japan cope with its long-prevailing low birth rate and the resulting shortfall in people who meet the military's age requirements. One other aspect of this effort is the ministry's remarkably un-Japanese push to put more women into uniform. Even if not every yen makes it to its designated place, it is apparent that Japan will begin to alter the security equation in the Western Pacific in the not-too-distant future. If Abe manages to alter the constitution as planned, then the change will no doubt occur at an accelerated pace. It will alter Washington's calculations. Beijing surely will also take note. Milton Ezrati is a contributing editor at the National Interest , an affiliate of the Center for the Study of Human Capital at the University at Buffalo (SUNY), and chief economist for Vested, the New York based communications firm. His latest book is Thirty Tomorrows: The Next Three Decades of Globalization, Demographics, and How We Will Live . https://nationalinterest.org/feature/japan-accelerates-its-defense-buildup-41277

  • DARPA Selects Teams to Explore Underground Domain in Subterranean Challenge

    October 3, 2018 | International, C4ISR

    DARPA Selects Teams to Explore Underground Domain in Subterranean Challenge

    Self-funded teams also invited to compete; media teleconference with program manager Sept. 27 OUTREACH@DARPA.MIL The world beneath us leaves much to be discovered. These uncharted environments pose immense challenges to military and emergency personnel as they respond to threats from adversaries or natural disasters. DARPA has selected nine teams to compete in the Subterranean (SubT) Challenge – seven in the physical Systems track and two in the Virtual track – to develop new approaches to rapidly map, navigate, and search underground environments. The competition seeks to better equip warfighters and first responders to explore human-made tunnel systems, urban underground, and natural cave networks that are too dangerous, dark, or deep to risk human lives. SubT program manager, Timothy Chung, will be available for media Q&A at noon EDT, Sept. 27. Interested reporters must contact outreach@darpa.mil for teleconference details. The SubT Challenge physical Systems and software-focused Virtual competitions aim to create a community of multi-disciplinary teams from distinct fields to foster breakthrough technologies in autonomy, perception, networking, and mobility for underground environments. Teams in the Systems competition will develop and demonstrate physical systems in real-world environments. DARPA has selected seven teams to compete in the funded track of the Systems competition: Carnegie Mellon University Commonwealth Scientific and Industrial Research Organisation, Australia iRobot Defense Holdings, Inc. dba Endeavor Robotics Jet Propulsion Laboratory, California Institute of Technology University of Colorado, Boulder University of Nevada, Reno University of Pennsylvania Teams in the Virtual competition will use simulation models and physics-based environments focusing on software-driven advances. The following organizations have received a contract to compete in the DARPA-funded track of the Virtual competition: Michigan Technological University Scientific Systems Company, Inc. Teams participating in the challenge will be tasked with designing and developing novel solutions that address the challenges of subterranean environments in circuits for each of the subdomains to include tunnel systems, urban underground, and natural cave networks, culminating with a final event encompassing elements from all three environments. DARPA also is seeking self-funded competitors for both the Systems and Virtual competitions. Self-funded teams will compete for prizes in each of the subdomain circuits. DARPA-funded and self-funded teams will vie for a $2 million prize in the Systems track, while the winner of the Virtual track will earn a $750,000 prize. Competitors Day will take place Thursday, Sept. 27, to convey the vision, schedule, registration information, and additional details for the DARPA Subterranean (SubT) Challenge, engage potential entrants, and provide a forum for technical exchange and teaming opportunities. For additional information on the DARPA Subterranean Challenge, please visit www.subtchallenge.com. Please email questions to SubTChallenge@darpa.mil. Image Caption: The DARPA Subterranean Challenge explores innovative approaches and new technologies to rapidly map, navigate, and search complex underground environments. Click below for high-resolution image. # # # Media with inquiries should contact DARPA Public Affairs at outreach@darpa.mil Associated images posted on www.darpa.mil and video posted at www.youtube.com/darpatv may be reused according to the terms of the DARPA User Agreement, available here: http://go.usa.gov/cuTXR. https://www.darpa.mil/news-events/2018-09-26

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