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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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  • Contract Awards by US Department of Defense - July 28, 2020

    July 29, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - July 28, 2020

    U.S. TRANSPORTATION COMMAND James J. Flanagan Shipping Corp., Beaumont, Texas, has been awarded a $144,135,422 firm-fixed-price contract (HTC711-20-D-R050). The contract provides stevedoring and related terminal services at ports in Beaumont, Corpus Christi, and Port Arthur, Texas. The contract period of performance is from Oct. 3, 2020, to Oct. 2, 2025. Fiscal 2020 transportation working capital funds were obligated at award. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity. NAVY Teledyne Brown Engineering Inc., Huntsville, Alabama, is awarded an $83,647,556 cost-plus-fixed-fee, cost reimbursable indefinite-delivery/indefinite-quantity contract. This contract provides research and development support services for the Medical Modeling and Simulation Planning Tools Sustainment, Enhancement and Application program for the Naval Health Research Center, San Diego, California. Work will be performed in Huntsville, Alabama (80%); and San Diego, California (20%), and is expected to be completed by August 2026. No funds will be obligated at the time of award. The initial task order for $8,853,470 for the base period of performance will be awarded with fiscal 2019 research, development, test and evaluation (Defense Health Program) funding of $296,551, which will expire at the end of the current fiscal year; and fiscal 2020 research, development, test and evaluation (Navy) funding of $4,359,068, which will not expire. The balance of the task order will be incrementally funded. The total value of the initial task order for the base period and one option year, if exercised, is $17,918,761. This contract was competitively procured via the beta.SAM.gov website and one offer was received. The Naval Medical Logistics Command, Fort Detrick, Maryland, is the contracting activity (N62645-20-D-5008). L-3 Communications Integrated Systems L.P., Waco, Texas, is awarded a $20,102,664 modification (P00053) to previously awarded cost-plus-fixed-fee contract N00019-15-C-0093. This modification exercises options for the installation of auxiliary power units, digital red switch systems and Family of Beyond Line-of-Sight Terminals/Presidential National Voice Conferencing modifications and associated support on two E-6B Mercury aircraft. Work will be performed in Waco, Texas, and is expected to be completed by July 2021. Fiscal 2020 aircraft procurement (Navy) funds for $20,102,664 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. Caterpillar Defense Products, Peoria, Illinois, is awarded an $18,233,057 time and material, firm-fixed-price, indefinite-delivery/indefinite-quantity contract for engineering, logistics and program management services. Work will be performed at Caterpillar's facilities and fleet concentration areas in the continental U.S. and shipboard locations outside of the continental U.S. according to each task order to be assigned. It is estimated that 80% of the work will occur at the contractor's facilities and 20% of the work will occur at government facilities. The services under this contract will provide enhanced life cycle manager, management and in-service engineering agent support services for Navy, Military Sealift Command and Coast Guard engine lines under Caterpillar's cognizance in order to augment the effectiveness of critical diesel engine programs, including diesel readiness system and diesel maintenance system, by engaging with a primary diesel engine original equipment manufacturer Caterpillar. The contract will have a five year ordering period and work is expected to be completed by July 2026. Fiscal 2020 operations and maintenance (Navy) funding in the total amount of $204,510 will be obligated at time of award and will expire at the end of the 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 Surface Warfare Center, Philadelphia Division, Philadelphia, Pennsylvania, is the contracting activity (N64498-20-D-4035). Lockheed Martin Corp., Owego, New York, is awarded an $18,100,000 modification (P00015) to previously awarded firm-fixed-price, cost-plus-fixed-fee contract N00019-19-C-0013. This modification provides non-recurring efforts and modifies three Lot 14 MH-60R helicopters to the initial India configuration in support of the MH-60R modification program for the government of India. Work will be performed in Owego, New York (95%); and Stratford, Connecticut (5%), and is expected to be completed by March 2022. Foreign Military Sales funds for $18,100,000 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, was awarded an $18,063,794 cost-plus-fixed-fee level of effort and cost-only modification to previously awarded contract N00024-18-C-6265 to exercise options for engineering and technical services for Navy submarines that will include software development, commercial off-the-shelf products and hardware and software integration. Work will be performed in Manassas, Virginia (65%); Middletown, Rhode Island (25%); and San Diego, California (10%). The supplies under this contract, Small Business Innovative Research Topic N96-278, will lead to the development of new designs that will replace obsolete subsystems, provide recommendations to reduce acquisition life cycle costs and improve reliability. The scope of work will involve the application of engineering disciplines required to analyze, design, fabricate and integrate hardware and software solutions for commercial off-the-shelf based subsystems that collectively provide capabilities to Naval platforms. Work is expected to be completed by July 2021. Fiscal 2020 shipbuilding and conversion (Navy); and 2020 research, development, test and evaluation (Navy) funding in the amount of $2,637,309 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. (Awarded July 24, 2020) The Whiting-Turner Contracting Co., Baltimore, Maryland, is awarded a $13,833,549 firm-fixed-price task order (N40085-20-F-5948) under a multiple award construction contract for repairs and improvements to the industrial wastewater treatment plant at Marine Corps Air Station, Cherry Point, North Carolina. Work will be performed in Havelock, North Carolina. The work to be performed provides for improvements and repairs to the industrial wastewater treatment plant; repairs to process equipment including the influent flow meter; grit removal system; primary clarifiers; equalization basins; scum pumps; up-flow clarifiers; continuous treatment facility; chemical ventilation systems; sludge dewatering system; construction of a new effluent Parshall flume; new sludge storage tank; and chemical storage tanks. Repairs to structural components include the chemical tote area, various equipment pads, concrete tank patching and handrails. Repairs to the existing electrical and process control systems include new conduit, wire and site lighting. Site improvements include drainage issue correction and the repair and upgrade of fences around the complex. Work is expected to be completed by July 2022. Fiscal 2020 operations and maintenance (Marine Corps) contract funds in the amount of $13,833,549 are obligated on this award and will expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command Mid-Atlantic, Cherry Point, North Carolina, is the contracting activity (N40085-20-D-0036). Military and Federal Construction Co.,* Jacksonville, North Carolina, is awarded a $10,823,608 firm-fixed-price task order (N40085-20-F-5918) under a multiple award construction contract for repairs to the bachelor enlisted quarters (BEQ 4313) at Marine Corp Air Station, Cherry Point, North Carolina. Work will be performed in Havelock, North Carolina. The work to be performed provides for improvements and repairs to BEQ 4313, including interior components and surfaces; concrete cantilever breezeways; windows and doors; interior and exterior walls; vanities and head accessories; floor coverings; stair trends; building exterior; electrical panels and subpanels; arc fault breakers; light fixtures; the fire suppression system; water supply; waste and vent piping; plumbing piping and fixtures; and the parking lot. Work is expected to be completed by February 2022. Fiscal 2020 operations and maintenance (Marine Corps) contract funds in the amount of $10,823,608 are obligated on this award and will expire at the end of the current fiscal year. Four proposals were received for this task order. The Naval Facilities Engineering Command Mid-Atlantic, Cherry Point, North Carolina, is the contracting activity (N40085-16-D-6303). Alpha Marine Services LLC, Galliano, Louisiana, is awarded a $9,754,990 firm-fixed-price contract for the time charter of seven tractor-like tugs in support of Navy bases at Kings Bay, Georgia; and Mayport, Florida. This contract includes a 12-month base period, four 12-month option periods and a six-month option period, which, if exercised, will bring the cumulative value of this contract to $55,177,663. Work will be performed in Kings Bay (50%); and Mayport, Florida (50%), and is expected to be completed by July 2025. Working capital funds (Navy) in the amount of $9,754,990 are obligated for fiscal 2020 and fiscal 2021 and will expire at the end of the fiscal years. The Military Sealift Command, Norfolk, Virginia, is the contracting activity (N32205-20-C-3511). Global, a 1st Flagship Co.,* Newport Beach, California, is awarded an $8,912,327 modification to cost-plus-fixed-fee contract N00024-17-C-4404 to exercise Option Period Three. This contract includes options which, if exercised, will bring the cumulative value of this contract to $60,737,344. Currently, the total value of the base, Option Period One, and Option Period Two is $41,290,787. The contract is to acquire services and material necessary to support and maintain all vessels assigned to the Naval Sea Systems Command (NAVSEA) Inactive Ship Maintenance Office, Bremerton, Washington. Work will be performed in Bremerton, Washington, and San Diego, California. This option exercise is for services and material necessary to operate and maintain all vessels assigned to the NAVSEA Inactive Ship Maintenance Office, Bremerton, Washington. Services include receipt, inspection, survey, maintenance and disposal of vessels. In addition, the contractor may perform structural, mechanical and electrical repairs. Work is expected to be completed by August 2021. Fiscal 2020 operations and maintenance (Navy) funding in the amount of $2,651,310 will be 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. ARMY BFBC LLC, Bozeman, Montana, was awarded a $57,738,442 modification (P00014) to contract W912PL-19-C-0014 to design and construct approximately nine miles of three-phase power distribution, lighting, closed-circuit television camera, linear ground detection system and shelters for the Barrier Wall Project. Work will be performed in Yuma, Arizona, with an estimated completion date of June 29, 2021. Fiscal 2020 operations and maintenance (Army) funds in the amount of $57,738,442 were obligated at the time of the award. U.S. Army Corps of Engineers, Albuquerque, New Mexico, is the contracting activity. Amentum Services Inc., Germantown, Maryland, was awarded a $15,000,000 modification (000271) to contract W52P1J-12-G-0028 for Army prepositioned stock logistics support services in support of maintenance, supply and transportation at Mannheim and Dulmen, Germany. Work will be performed in Mannheim, Germany, with an estimated completion date of Nov. 20, 2020. Fiscal 2020 operations and maintenance (Army) funds in the amount of $15,000,000 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. Ad HOC Research Associates,* Havre de Grace, Maryland, was awarded an $11,040,092 firm-fixed-price, single award, indefinite-delivery/indefinite-quantity contract to provide support for the Cyber Battle Lab, Capabilities Development Integration Division, Futures and Concept Center, Army Futures Command development and experimentation in support of all areas of cyber electromagnetic activities to include cyberspace operations, electronic warfare, Department of Defense Information Network-Army (DODIN-A), and information operations. Bids were solicited via the internet with 12 received. Work will be performed at Fort Gordon, Georgia, with an estimated completion date of July 27, 2025. No funding was obligated at time of award. Funding will be obligated by delivery orders under the contract. Mission and Installation Contracting Command-Fort Gordon, Fort Gordon, Georgia, is the contracting office (W91249-20-D-0006). Kiewit Infrastructure South, Omaha, Nebraska, was awarded a $7,015,443 firm-fixed-price contract to restore the North Jetty at Ponce de Leon Inlet, Volusia County, Florida. Bids were solicited via the internet with three received. Work will be performed in Ponce de Leon, Florida, with an estimated completion date of Feb. 10, 2022. Fiscal 2020 civil construction funds in the amount of $7,015,443 were obligated at the time of the award. U.S. Army Corps of Engineers, Jacksonville, Florida, is the contracting activity (W912EP-20-C-0008). AIR FORCE Hologic Inc., Marlborough, Massachusetts, has been awarded a firm-fixed-price, undefinitized contract action with a price ceiling of $7,597,607 to build and validate equipment used in manufacturing of COVID-19 testing consumables intended to expand domestically manufactured test availability in the U.S. The contractor will provide all necessary personnel, supervision, management, tools, equipment, transportation, materials and any other items or services necessary to meet the deliverables in accordance with the contract, as well as with commercial and local standards. Work will be performed in San Diego, California; Marlborough, Massachusetts; and Menomonie and Somerset, Wisconsin, and is expected to be completed Jan. 31, 2021. This award is the result of a sole-source acquisition under Unusual and Compelling Urgency authority. Fiscal 2020 other procurement funds in the amount of $423,522 were obligated at the time of award. Air Force Life Cycle Management Center, Wright Patterson Air Force Base, Ohio, is the contracting activity (FA8641-20-C-0002). (Awarded July 25, 2020) *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2291605/source/GovDelivery/

  • Opinion: Defense Is Unscathed By COVID-19? Think Again.

    May 27, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Opinion: Defense Is Unscathed By COVID-19? Think Again.

    John Dowdy May 22, 2020 The rapid onset of the novel coronavirus has wreaked havoc on markets around the world, hitting commercial aviation especially hard as load factors plummet, flights are canceled and suppliers cut production rates and furlough workers. Amid all this disruption, defense manufacturers appear to have been relatively unscathed. But defense has always been a long-cycle business, driven more by annual budgets than daily load factors. And as the bill for rebuilding the global economy mounts, defense budgets are sure to come under pressure. COVID-19 is first and foremost a human tragedy, and its continued spread is still a major concern. But we must solve for both the virus and the economy; the dual imperative of our time is the desire to preserve lives and livelihoods. Both will require substantial resources for public health and for economic rejuvenation. Countries around the world are making massive investments to rebuild battered economies, putting out more than $11 trillion in the last 2.5 months, with more sure to follow. In the U.S., Congress passed the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act at the end of March, bringing the total stimulus thus far to $3 trillion, which could push the fiscal 2020 budget deficit to a record $3.8 trillion, an eye-watering 18.7% of the country's GDP. Other countries have passed similar aid packages, leading to soaring debt levels around the world. And more may well be necessary: The House has passed proposals for another $3 trillion in aid, although the bill's fate in the Senate is unclear. Government debt levels are already high, swelling as the global financial crisis of 2008 caused a drop in tax revenues and a rise in social-safety-net payments. And the wave of deleveraging many expected as the recession eased never materialized: From 2008 to mid-2017, global government debt more than doubled, reaching $60 trillion. According to the International Monetary Fund (IMF), this year's increase in public-sector debt has reached 122.4% of gross domestic product (GDP) on average in developed countries. Increased deficits worldwide are likely to put pressure on all discretionary spend, including defense. In the U.S., military spending accounts for 15% of all federal and roughly half of discretionary spending, so defense may come under real pressure. Rep. Ken Calvert of California, the ranking Republican on the House Appropriations defense subcommittee, says defense budgets were strained even before this year's unplanned burst of deficit spending. “There's no question that budgetary pressure will only increase now for all segments of our federal budget, including defense,” Calvert said. Defense Secretary Mark Esper has said he is preparing for future defense budget cuts and that legacy systems may need to be scrapped to pay for more modern forces. South Korea shows early signs of this trend, with leaders recently announcing a shift in resources to disaster relief in response to the pandemic. Money came from education, agriculture, and environmental protection but mostly from defense. This example is particularly significant, given that South Korea is still technically at war, frozen in conflict with its immediate neighbor to the north. Furthermore, South Korea has been more effective than its peers in addressing the pandemic with a swift medical response and widespread testing that allowed the country to reopen its economy faster than other advanced countries. If South Korea is altering its budgetary priorities, others could follow. The coronavirus has already had a massive human cost, resulting in approximately 300,000 deaths, including more than 90,000 Americans, more than were killed in Vietnam, the Gulf War, Iraq and Afghanistan combined. But the financial cost has been even greater. The cost in the US has already exceeded that of all the wars the U.S. has fought over the last 50 years. And if an additional $3 trillion is approved by Congress, the cost will surpass that of World War II. At this point, it is too early to predict how much the defense budget will draw down how quickly. Indeed, the shift might not occur immediately. Broadly speaking, two factors have historically had the most influence on defense spending: threats and affordability. Governments will all calibrate the relative importance of the threats they face against their new economic realities. In keeping with past patterns, countries may give most weight to threats, real or perceived, over the near term. If there are anticipated or ongoing conflicts, their defense budgets will probably increase. Over the longer term, however, economic factors tend to prevail, and governments may set defense budgets in line with their diminished resources. Either way, we face some tough decisions ahead. https://aviationweek.com/aerospace/manufacturing-supply-chain/opinion-defense-unscathed-covid-19-think-again

  • La Commission européenne crée un « Observatoire des technologies critiques » pour favoriser l’innovation et les synergies

    February 23, 2021 | International, Aerospace, Naval, Land, C4ISR, Security

    La Commission européenne crée un « Observatoire des technologies critiques » pour favoriser l’innovation et les synergies

    La Commission européenne a présenté, lundi 22 février, un plan d'action afin de créer des synergies entre les secteurs de la défense, du civil et du spatial. Le commissaire européen Thierry Breton a souligné que le FED (Fonds européen de défense), dont la vocation est de pousser les entreprises du secteur à former des alliances transfrontalières, afin de doper l'innovation, représente « un moyen très puissant à notre disposition ». Des synergies peuvent être créées entre ce fonds et d'autres programmes de l'UE, dans les domaines du spatial, du numérique, de la sécurité intérieure, notamment. Le plan d'action de Bruxelles repose en particulier sur l'identification d'industries clés pour l'avenir. La Commission va créer un « Observatoire des technologies critiques », qui fournira des rapports bisannuels, visant à orienter les efforts sur quelques domaines ciblés. Les secteurs du cloud, des processeurs, du spatial et des technologies quantiques ont notamment été mis en avant. Trois projets sont déjà cités, concernant les drones, la connectivité aux réseaux par satellite et la gestion du trafic spatial. Le plan entend inclure les PME, les startups ou les petits centres de recherche, en les aiguillant au mieux vers les mécanismes de financement auxquels ils pourraient prétendre au-delà de leur domaine traditionnel. « Nombreuses sont les innovations qui sont nées dans des petits labos », a souligné la vice-présidente de la Commission européenne, Margrethe Vestager. Les Echos et Le Figaro du 23 février

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