August 6, 2019 | International, Land
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.
January 9, 2024 | International, Aerospace
NATO is expanding its space radar to build closer relations with space industries. NATO is inviting the commercial space sector to its Space Reverse Industry Event on 20 February 2024 in Brussels to give a new impetus to dialogue and engagement with this growing sector.
April 14, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
By Anthony Capaccio As of Wednesday, 86 sites were closed out of 10,509 locations Boeing's aircraft plant closings are one big exception The Pentagon's contractors have largely avoided widespread closings or “major impacts” so far from the coronavirus pandemic, according to a running tally compiled by its contracts management office. Of 10,509 locations tracked or monitored by the Defense Contract Management Agency, 135 had closed at some point as of Wednesday. Forty-nine of those reopened after an average of about 10 days. “These closures have generally been short-term in order to clean facilities” or to “reduce the potential exposure of employees,” agency spokesman Matthew Montgomery said in a statement. The agency doesn't track how many workers are affected, he said. And the numbers on closings don't reflect defense contractors that have cut back their operations -- or the outsized impact of Boeing Co.'s shutdowns. Boeing, the No. 2 U.S. defense contractor, has indefinitely halted assembly of the KC-46 refueling tanker and the P-8A Poseidon maritime patrol aircraft at its facilities in Washington State, the initial U.S. center of the pandemic. Last Friday, the company began a two-week shutdown of the Philadelphia-area factory where it manufactures military rotorcraft, including the Chinook CH-47 cargo helicopter and the tilt-rotor V-22 Osprey. Huntington Is Open By contrast, Huntington Ingalls Industries Inc., has had no closings to this point, according to spokeswoman Beci Brenton. With 42,000 employees, it's the sole U.S. builder of aircraft carriers and the co-contractor of Navy attack submarines and DDG-51 destroyers. Montgomery said the Defense Department “has worked closely with local and state governments to ensure that the defense industrial base is considered critical infrastructure to help minimize the impact of statewide closures.” Impacts from closings “are being seen across all sectors including but not limited to clothing and textiles, aerospace, shipbuilding, and ground vehicles,” he said. Many Pentagon contractors “are struggling to maintain a mission-ready workforce due to work site closures, personnel quarantines and state and local restrictions on movement” that can't “be resolved through remote work,” Kim Herrington, the Defense Department's pricing and contracting director, said in a memo Wednesday. To support the defense industry, the DCMA has modified about 1,400 contracts to increase the rate for “progress payments” for work completed on time from 80% to 90% of costs incurred for large businesses and from 90% of cost to 95% for small businesses. The move resulted in $3 billion being advanced to industry, according to Herrington. That's in addition to $882 million that the Air Force is providing to Chicago-based Boeing. The funds were being withheld until the company corrected or provided sufficient plans to correct numerous deficiencies with KC-46 tankers. Most of those flaws remain unresolved. Also, the Pentagon issued guidance Thursday that lets military contracting officers reimburse companies for documented payments to employees who can't work because of coronavirus facility closings or related restrictions. https://www.bloomberg.com/news/articles/2020-04-10/defense-contractors-keep-most-plants-running-despite-outbreak
February 13, 2020 | International, Land
The Army's slashed its 2021 buys of the Armored Multi-Purpose Vehicle (AMPV) and upgraded Paladin PIM howitzer to give the factory time to make fixes, particularly to quality control. By SYDNEY J. FREEDBERG JR. PENTAGON: Two of the three armored fighting vehicle programs being built by BAE System's factory in York, Pennsylvania have been slashed in the 2021 budget. While the Marine Corps continues to ramp up production of its eight-wheeled Amphibious Combat Vehicle, from 56 ACVs in 2020 to 72 in '21, that increase is swamped by Army cuts to two tracked vehicles, both derived from BAE's iconic but aging M2 Bradley: Production of the turretless utility variant of the Bradley, the Armored Multi-Purpose Vehicle (AMPV), will plummet from 121 in the 2020 budget to just 32 in '21, recovering to 168 in '22. Production of the upgraded M109A7 PIM version of the Paladin artillery vehicle, which uses the Bradley suspension and drive train, will fall from 96 vehicles (48 howitzers and 48 ammo carriers) to 60, recovering to 88 in '22. Those 2022 figures are a forecast in the five-year budget plan, however, not a formal request to Congress, and they might change. “Once you start to get that production line facilitized — and again it's not going to be one of those things you figure out in a couple months — it's going to be an iterative every-year look at what's the right rate [and] what's the most effective and efficient way to run that line,” deputy assistant secretary John Daniels told reporters yesterday. The Army had already reduced production of both BAE vehicles in its 2020 request last year – along with over 180 other programs – as it ruthlessly scrubbed its current programs for savings it could reinvest in higher-priority, higher-tech weapons for future wars with Russia or China. But BAE's York plant has also had trouble keeping up both quality-control standards – notably for welding armored hulls – and production rates as it tried to expand its tooling and its workforce to meet Army demand, attracting the personal attention of then-Army Secretary Mark Esper. Raytheon's Naval Strike Missile Gallery The Naval Strike Missile is a long-range, precision strike weapon that seeks and destroys enemy ships at distances greater than 100 nautical miles. Learn More. “Part of the problem was “getting the production facility right-sized,” Daniels said, “[and] there were some additional unforeseen issues in the industrial base” – presumably a reference to the quality control issues. So the Army decided to “slow the production curve to get a little bit of time to get a better vehicle,” he said. “It would delay it by about six months.” We've asked BAE Systems for comment and will update this story as soon as they get back to us. https://breakingdefense.com/2020/02/bae-york-plant-problems-trigger-big-army-cuts