HII nets $2.2B deal from GenDyn for Columbia-class submarine modules

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  November 20, 2020 | International, Land

  Turkey in talks with South Korea to salvage Altay tank program

  By: Burak Ege Bekdil ANKARA, Turkey — Turkish procurement and military officials as well as teams from a private manufacturer have been negotiating with a South Korean company to recover a program riddled with delays for the production of the country's first indigenous new-generation main battle tank. “This program has faced major delays due to failed access to significant components like the engine, transmission and armor,” a procurement official told Defense News. “I am not in a position to give a date for the start of serial production. All I know is we are trying hard to get it moved ahead.” In 2019, Turkish President Recep Tayyip Erdogan's office included the Altay tank as part of the military's 2020 inventory in a government document. In an October 2019 speech, Ethem Sancak — a senior shareholder in BMC, which makes the Altay — said the tank would be fielded within 24 months. It now appears that prediction was too optimistic. The presidential office's 2021 investment program, released earlier this month, does not even mention the Altay, let alone the tank entering service. According to a source with knowledge of the Altay program, BMC has been in talks with Hyundai Rotem to solve problems surrounding missing foreign technology for the Altay, which Turkish officials often portray as a fully national, indigenous Turkish tank. The South Korean company previously built public transportation and Bosporus crossing systems in Istanbul, Ankara and Adana as well as light rail systems in Istanbul and Izmir. “We are hoping our talks will eventually sort out the problems regarding the power pack — [the engine and transmission — that] we will use in the serial production cycle,” the source told Defense News. “We are probably talking about another couple of months of talks before we know which way we are headed.” He added that BMC is in indirect talks, through Hyundai Rotem, with two South Korean defense technology concerns: engine-maker Doosan and S&T Dynamics, which produces automatic transmissions. “Ideally a Doosan-S&T power pack will power the Altay if we can iron out differences and licensing issues,” he said. South Korea has experienced similar problems with its program for the mass production of the K2 Black Panther tank. Its deployment by the Army faced delays due to problems concerning the engine and transmission. The first 100 units were built with a Doosan 1,500-horsepower engine and an S&T Dynamics automatic transmission. Under a second contract, tanks began to be delivered in late 2016. But after S&T Dynamics' transmission failed durability tests, South Korea's Defense Acquisition Program Administration announced the second batch would have a “hybrid” power pack consisting of the locally developed engine and the German RENK transmission system. “How the Turks can make use of a proven engine and a failed transmission remains to be seen,” said a London-based Turkey expert, who spoke on condition of anonymity. Turkey had hoped to power the Altay with the German MTU engine and RENK transmission, but talks with German manufacturers over the past couple of years failed due to a federal arms embargo on Turkey. Germany is one of a number of European governments that have limited exports to Turkey over its involvement in the Syrian civil war. A similar problem concerns the Altay's planned armor. Turkey was hoping a French armor solution would be continue to be available following an initial batch of 40 units. But recent political tension between the two countries over hydrocarbon explorations off Cyprus has put this in jeopardy. The source with knowledge of the Altay program said the armor will now be locally produced under a public-private partnership. The Altay program dates back to the mid-1990s, but it wasn't until November 2018 that the Turkish government awarded the tank's multibillion-dollar contract to BMC. In a competition, the firm defeated Otokar, which had already produced four Altay prototypes under a government contract. The contract involves the production of an initial batch of 250 units, life-cycle logistical support, and the establishment by the contractor of a tank systems technology center and its operation. As part of the contract, BMC will design, develop and produce a tank with an unmanned fire control unit. The contract said the first Altay tank is to roll off the assembly line within 18 months. Opposition parties in parliament have slammed the government over delays, but procurement officials claim the 18-month clause will apply after the first unit's production begins. The Altay program is broken into two phases: T1 and T2. T1 covers the first 250 units, and T2 involves the advanced version of the tank. Turkey also plans to eventually produce 1,000 Altays, to be followed by an unmanned version. The deal has proved politically controversy, particularly after the Erdogan administration leased for free a military-owned tank and turret factory by the Marmara Sea to BMC for a period of 25 years. The move prompted cries of nepotism, as BMC shareholder Sancak was a senior member of Erdogan's Justice and Development Party at the time. Ozgur Eksi, an independent defense analyst, questioned the choice of assigning a factory by the sea for tank production. “In the event of war, the Altay factory could be an easy target for the enemy fire,” he said. “This program could have been much better planned from a strategic point of view.” Nevertheless, Eksi added, “there is a political determination to get the Altays into the Army's inventory. Sooner or later, production will start.” https://www.defensenews.com/industry/2020/11/19/turkey-in-talks-with-south-korea-to-salvage-altay-tank-program/

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  July 9, 2020 | International, Aerospace

  US Army’s Future Vertical Lift program will transform industry, so we must get it right

  By: Andrew Hunter and Rhys McCormick It is rare when technological innovation delivers change that fundamentally reshapes military operations. Helicopters made one of these rare breakthroughs after World War II. The ability to support land operations with vertical lift aircraft fundamentally changed how militaries moved on the battlefield. However, the shape of military operations supported by today's helicopters reflect their capabilities and limitations in terms of speed, range and lift capacity. The Army's Future Vertical Lift efforts are designed to reshape military operations by surpassing the limits imposed by today's systems. It is less commonly appreciated, however, that future vertical lift, or FVL, aircraft may do just as much to reshape the vertical lift industry as they do military operations. To deliver the capabilities FVL requires affordably — in development, production and sustainment — industry will have to leverage new design and production techniques that deliver critical components with high quality and moderate cost. Key parts such as rotor blades and rotor heads are big cost drivers. Designing these parts for FVL means redesigning the supply chains and manufacturing processes that produce them. For the smaller companies that make up the lower tiers of the supply chain, this will require them to fundamentally change how their production process works. We recently completed a study that looked at the implications of the Army's Future Vertical Lift project for the industrial base. What became clear in this review is that there are both opportunities and risks in making the transition to FVL. Substantial investment is required by both the Army and industry, and not everyone in industry will make it. However, this transition also offers significant opportunities to leverage emerging technologies such as additive manufacturing, robotics, artificial intelligence, digital twins and data analytics to achieve the Army's objectives. The Army's management will be key in ensuring that industry is able to get the most out of new design and production methods, reconfigured supply chains, and a reshaped workforce. The Army's key tools for managing the transition include its ability to provide an addressable market for the industrial base that attracts the necessary FVL investment, and its ability to align industry incentives with the Army's core goals. The addressable market for industry is not just the Army's future programs, but also the sustainment of legacy platforms. For much of the supply chain, the sustainment market is a huge part of their bottom line. The Army's total vertical lift-addressable market for industry is roughly $8-10 billion annually over the next decade. Although there are some concerns whether that level of spending is feasible while procuring two vertical lift programs simultaneously, previous research by the Center for Strategic and International Studies found that future attack reconnaissance aircraft and future long-range assault aircraft can be accommodated at historical Army modernization funding levels. Of that $8-10 billion annual vertical lift spending, operating and support costs will provide the largest share, while research and development as well as acquisition total a little more than $2 billion annually. Given the size of the addressable market, the biggest challenges and risks in transitioning to a new vertical lift industrial base are not among the big prime contractors, but among the smaller suppliers in the industrial base who can't be sure that investing in FVL today will generate the necessary returns tomorrow. Unlike the bigger prime contractors, these lower-tier suppliers have a much different risk appetite and may struggle with making the upfront investments to build components in new ways. Supporting the supply chain in making this transition is critical to meeting the Army's cost and schedule objectives, which highlights how important incentives are in the Army's approach. The Army's biggest incentive to industry is to provide predictability by keeping FVL program requirements consistent and clear through the development process so that industry can plan and invest. To date, the Army has done this. It should continue to do so. Additionally, the Army can incentivize industry to make upfront investments now that deliver cost savings later. Given that sustainment costs account for 68 percent of rotary-wing costs, these investments are critical. Furthermore, it is in the Army's interest to sustain competition throughout the development process as it moves closer to picking winners. Competition is the strongest incentive for industry. Finally, the Army should be cognizant that incentives will change as FVL moves from development to production, and its management approach will need to evolve. The Army has the key ingredients in place for FVL if it successfully guides the industrial base through this transition. While that is a tall order, our analysis of the Army's FVL plans suggests they begin on solid ground and are well-informed by the technological and affordability realities. One final factor in FVL's success will be sustaining congressional support by being clear and consistent in communicating and executing the Army's plans. https://www.defensenews.com/opinion/commentary/2020/07/07/us-armys-future-vertical-lift-program-will-transform-industry-so-we-must-get-it-right/

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  November 15, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

  Contract Awards by US Department of Defense - November 14, 2019

  NAVY Rolls-Royce Corp., Indianapolis, Indiana, is awarded a $1,207,968,973 firm-fixed-price, indefinite-delivery/indefinite-quantity contract. This contract provides sustainment support of the V-22 AE1107C engine at various V-22 aircraft production, test and operating sites. Sustainment support includes program management, integrated logistics support, sustaining engineering, maintenance, repair, reliability improvements, configuration management and site support. Work will be performed in Indianapolis, Indiana, and various locations within and outside the continental U.S., and is expected to be completed in February 2025. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was not competitively procured pursuant to 10 U.S. Code 2304(c)(1). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-20-D-0004). BAE Systems San Diego Ship Repair, San Diego, California (N00024-16-D-4416); Continental Maritime of San Diego, San Diego, California (N00024-16-D-4417); and General Dynamics, NASSCO, San Diego, California (N00024-16-D-4418), are being awarded a $299,342,235 ceiling increase to the maximum potential cumulative total of orders for all firm-fixed price, indefinite-delivery/indefinite-quantity, multiple award contracts to $838,522,014 for complex emergent and continuous maintenance and Chief of Naval Operations availabilities on surface combatants (DDG and CG) class ships. Each contractor shall furnish the facilities and human resources capable of completing complex emergent and continuous maintenance, repair, modernization and Chief of Naval Operations availabilities on surface ships assigned to or visiting the port of San Diego, California. These three companies will have the opportunity to offer on individual delivery orders. Work will be performed in San Diego, California, and is expected to be complete by March 2021. No funding is being obligated through this contract modification. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Raytheon Co., Marlborough, Massachusetts, is awarded $209,636,983 for a ceiling-priced, indefinite-delivery, performance-based logistics requirements contract for the repair, upgrade or replacement of 361 NIINs within two of the 13 major subsystems of the Aegis Weapon System: the MK99 fire control system and the Army Navy Joint Electronics Type Designation Systems Water/Surface Ship Radar Surveillance and Control (AN-SPY-i) Transmitter Group. Work will be performed in Chesapeake, Virginia (70%); and Marlborough, Massachusetts (30%). This contract includes a five-year base period with no options. Work is expected to be completed by November 2024. Annual working capital funds (Navy) in the amount of $34,290,659 will be issued for delivery order (N00383-20-F-0W80) that will be awarded concurrently with the contract and will initially be obligated at the time of award as an undefinitized contract action with a commitment of $11,430,220 for a year's period of performance. Funds will not expire at the end of the current fiscal year. One firm was solicited for this non-competitive requirement under authority 10 U.S. Code 2304 (c)(1) and Federal Acquisition Regulation 6.302-1, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-20-D-W801). Huntington Ingalls Industries, Newport News Shipbuilding Inc., Newport News, Virginia, is awarded a $15,029,055 cost-plus-fixed-fee modification to previously awarded contract N00024-16-C-2116 for the purchase of additional Ford (CVN 78) Class shore based spares in support of the Ford Class. Work will be performed in Santa Fe Springs, California (99%); and Newport News, Virginia (1%), and is expected to be completed by May 2022. Fiscal 2019 shipbuilding and conversion (Navy) funding in the amount of $15,029,055 will be obligated at time of award and will not expire at the end of the current fiscal year. The design and construction of a nuclear powered aircraft carrier requires highly technical and specialized knowledge of the ship's mission, design, systems and nuclear reactor plants. Huntington Ingalls Industries, Newport News Shipbuilding Inc. (HII-NNS) is the nation's only designer and builder of nuclear powered aircraft carriers. HII-NNS has developed a unique capability encompassing all aspects of aircraft carrier design, construction, modernization, repair and technical and engineering support which, because of its uniqueness, cannot be acquired elsewhere. The Naval Sea Systems Command, Washington Navy Yard, Washington, District of Columbia, is the contracting activity. Integral Aerospace LLC, Santa Ana, California, is awarded a $9,292,108 modification (P00003) to a previously awarded firm-fixed-price contract (N00019-18-C-1036). This modification exercises an option to manufacture, test and deliver 72 FPU012/A 480 gallon external fuel tanks in support of the F/A-18E/F aircraft. Work will be performed in Santa Ana, California, and is expected to be completed in May 2021. Fiscal 2019 aircraft procurement (Navy) funds in the amount of $9,292,108 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. AAR Aircraft Services Inc., Indianapolis, Indiana, is awarded an $8,457,049 firm-fixed-price, time and materials delivery order (N00019-20-F-0337) against a previously awarded, indefinite-delivery/indefinite-quantity contract (N00019-18-D-0111). This delivery order provides depot level maintenance and repair of four P-8A Poseidon aircraft in support of the Navy. Work will be performed in Indianapolis, Indiana, and is expected to be completed in December 2020. Fiscal 2020 operation and maintenance (Navy) funds in the amount of $8,457,049 will be obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. ARMY Endeavor Robotics Inc., Chelmsford, Massachusetts, was awarded a $109,044,937 hybrid (cost plus-fixed-fee and firm-fixed-price) contract for procurement of up to 350 Common Robotic System - Heavy systems, refurbishment of systems associated spare parts, test support, user training support and logistics development. Two bids were solicited with two bids received. Work locations and funding will be determined with each order, with an estimated completion date of Nov. 12, 2024. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-20-D-0017). Teichert-Odin JV,* Sacramento, California, was awarded a $49,283,800 firm-fixed-price contract for a levee improvement construction. Bids were solicited via the internet with three received. Work will be performed in Sacramento, California, with an estimated completion date of July 2, 2022. Fiscal 2019 non-federal sponsor, civil construction funds in the amount of $49,283,800 were obligated at the time of the award. U.S. Army Corps of Engineers, Sacramento, California, is the contracting activity (W91238-20-C-0002). Bauer Foundation Group, Odessa, Florida, was awarded a $32,301,199 firm-fixed-price contract for construction of a deep soil-cement cutoff wall. Bids were solicited via the internet with four received. Work will be performed in East St. Louis, Illinois, with an estimated completion date of Nov. 15, 2021. Fiscal 2020 civil works, operations and maintenance funds in the amount of $32,301,199 were obligated at the time of the award. U.S. Army Corps of Engineers, St. Louis, Illinois, is the contracting activity (W912P9-20-C-0002). General Dynamics Land Systems, Sterling Heights, Michigan, was awarded a $32,256,984 modification (P00092) to contract W56HZV-17-C-0067 for Abrams Systems technical support. Work will be performed in Sterling Heights, Michigan, with an estimated completion date of May 31, 2020. Fiscal 2019 and 2020 procurement of weapons and tracked combat vehicles; and operation and maintenance, Army funds in the amount of $32,256,984 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. Oshkosh Defense LLC, Oshkosh, Wisconsin, was awarded a $21,791,160 modification (P00275) to contract W56HZV-15-C-0095 for contractor support, labor hours, material and travel for the Marine Corps' efforts for the Joint Light Tactical Vehicle. Work will be performed in Oshkosh, Wisconsin, with an estimated completion date of Sept. 30, 2020. Fiscal 2020 procurement, Marine Corps funds in the amount of $21,791,160 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. AIR FORCE Raytheon Co. Missile Systems Division, Tucson, Arizona, has been awarded an $18,569,662 modification (P00003) exercising the first option year of three options to previously awarded FA8675-19-C-0004 for fiscal 2020 High-speed Anti-Radiation Missile (HARM) Targeting System (HTS) Contractor Logistics Support (CLS) services. The contract modification is for HTS POD CLS depot repairs and sustainment activities. Work will be performed at Tucson, Arizona, and is expected to be completed by Nov. 30, 2020. The total cumulative face value of the contract is $37,260,817. Fiscal 2020 operations and maintenance funds in the amount of $18,569,662 are being obligated at the time of award. The Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity. Sonalysts Inc., Waterford, Connecticut, has being awarded a $9,071,850 cost-plus-fixed-fee modification (P00010) to the previously awarded FA8806-19-C-0002 for the Standard Space Trainer (SST) Space-Based Infrared System (SBIRS) Mission-Specific Vendor Plug-in (MSVP) Continuation Development and Option for Geosynchronous Earth Orbit (GEO) 5 and 6. This modification provides for the development of the training system supporting SIBRS operations under the management of the Space Training Acquisition Office. Work will be performed in Waterford, Connecticut, and is expected to be completed by Nov. 15, 2021. Total cumulative face value of the contract is $44,281,437. Fiscal 2019 research and development funds in the amount of $6,041,416 are being obligated at the time of award. The Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. General Electric Research, Niskayuna, New York, has been awarded a $7,147,058 cost-reimbursable contract for the Materials Architecture and Characterization for Hypersonics (MACH) effort. This contract provides for the design and experimental validation of a transpiration cooling system to reduce heating at the leading edge and control part temperature in line with material capability. Work will be performed at Niskayuna, New York, and is expected to be complete by April 8, 2022. This award is the result of a competitive acquisition and 24 offers were received. Fiscal 2019 research, development, test and evaluation funds in the amount of $924,218 are being obligated at the time of award. The Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-20-C-7011). DEFENSE LOGISTICS AGENCY Design West Technologies Inc.,** Tustin, California, has been awarded a maximum $7,472,100 firm-fixed-price contract for miscellaneous artillery fuze setters. This was a competitive small business set-aside acquisition with one offer received. This is a five-year contract with no option periods. Location of performance is California, with a Nov. 14, 2024, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-20-D-0018). *Small Business **Small Disadvantaged Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2017225/source/GovDelivery/