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September 24, 2020 | International, Aerospace

How’s Military Aftermarket Sector Faring Amid COVID-19 Crisis?

Michael Tint

The COVID-19 crisis has hit the commercial MRO industry hard. How is the military aftermarket sector faring?

Michael Tint, head of defense analytics at Aviation Week, responds:

COVID-19 has not caused military aviation anything like the degree of disruption it has for civil aviation. Defense budgets for 2020 were largely allocated before its onset, and there have been only minor reductions in military operations as a result of the pandemic. Procurement has been similarly steady, with only small production delays so far. However, the nature of military budgeting in most countries means that major cuts in spending will not be felt for at least a year or two. Meanwhile, rising global tensions are likely to ensure that defense spending remains a priority—even if the longer-term economic consequences of the pandemic prove severe.

Growing Military Engine Repair, 2020-29

(U.S. $ billions)

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Jet engines powering Western-designed fighters and training aircraft will generate $50.5 billion in maintenance, repair and overhaul demand over the next decade—rising from $4.5 billion in 2020 to $5.6 billion in 2029, for a compound annual growth rate of 2.05%. Most of the growth will come from Pratt & Whitney's F135, the engine on Lockheed Martin's F-35.

As military flying continues, so too must military engine maintenance, repair and overhaul. Aviation Week forecasts that $85.4 billion dollars will be spent on depot-level engine maintenance for Western-designed military aircraft over the next decade. Of this total, $50.5 billion will be spent on the engines powering fighters and jet-powered trainers. Demand for these engines will rise from $4.5 billion in 2020 to $5.6 billion in 2029, a compound annual growth rate of 2.05%. General Electric F404/F414s in Boeing's F/A-18 and T-7, Saab's Gripen, and KAI's KF-X and T-50 will produce the largest share of this demand (22.4%), but most of the growth will come from Pratt & Whitney F135s powering Lockheed Martin F-35s. Demand for this engine will rise from $424 million in 2020 to $1.4 billion in 2029, a rate of 14.19% per year

https://aviationweek.com/mro/hows-military-aftermarket-sector-faring-amid-covid-19-crisis

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  • Leonardo eyes enhanced firefighting configuration for its C-27J aircraft

    March 26, 2019 | International, Aerospace

    Leonardo eyes enhanced firefighting configuration for its C-27J aircraft

    The 16th Aerial Firefighting Europe event is returning to Nimes, France, March 19 to 20 with a new entry, Leonardo's C-27J aircraft in firefighting configuration. The C-27J firefighter with roll-on/roll-off Fire Attack System (FAS) made by Simplex Aerospace–a leader of advanced aerial application systems–represents an effective solution in airborne firefighting technology and capability. This enhanced firefighter configuration is a flexible solution, ideal for enhancing the capabilities of the C-27J multi-mission aircraft with significantly lower acquisition and operating costs than a dedicated firefighting platform. The Simplex Fire Attack System can be easily installed or removed by a small team in approximately 60 to 90 minutes via the aircraft's rear loading ramp. No major structural modifications are required to the airframe. The main tank has a maximum capacity of 10,600 l (2,800 US gallons); 568 litres (150 US gallons) of foam retardant can also be added. The firefighting system is one of the options that C-27J customers can add to the C-27J Spartan new baseline configuration, which incorporates a brand new avionics system designed to comply with Next Generation Air Traffic Control requirements, new cockpit control panels and LED aircraft lights. Operators will enjoy improved operational cost and performance within the aircraft flyaway price. The firefighting capability and the new baseline configuration are also being offered as a retrofit to current operators that want to upgrade their C-27J fleet. While offering the C-27J firefighter with the Simplex Aerospace roll-on/roll-off Fire Attack System, Leonardo, in collaboration with the European SCODEV Consortium, is also studying and testing a further innovative solution to enhance the C-27J's firefighting potential. The SCODEV scooping device will provide increased operational flexibility by allowing the water tank to be filled from a stretch of water, without the need to return to base. The system will provide a scooping device for the safe loading of water (sea, lakes, rivers) from around 30 metres above the surface, with a roll-on / roll-off approach to allow the aircraft different roles between firefighting, emergency support (medevac) and transport. Eighty-five C-27J Spartans have already been ordered by the air forces of Italy, Greece, Bulgaria, Lithuania, Romania, Slovakia, United States, Mexico, Australia, Peru, Kenya, Morocco, Chad and Zambia. https://www.skiesmag.com/press-releases/leonardo-eyes-enhanced-firefighting-configuration-for-its-c-27j-aircraft

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    February 19, 2024 | International, C4ISR

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  • Contract Awards by US Department of Defense - March 13, 2020

    March 16, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - March 13, 2020

    NAVY BAE Systems, San Diego Ship Repair, San Diego, California (N00024-16-D-4419); Huntington Ingalls Industries Inc., San Diego, California (N00024-16-D-4420); and General Dynamics, National Steel and Shipbuilding Co., San Diego, California (N00024-16-D-4421), are awarded a $171,876,527 firm-fixed-price modification to exercise Option Period Four to previously awarded indefinite-delivery/indefinite-quantity, multiple award contracts for complex, emergent and continuous maintenance and Chief of Naval Operations (CNO) availabilities on amphibious ships (landing platform/dock, landing ship dock, landing helicopter assault and landing helicopter dock) homeported in San Diego, California. Work will be performed in San Diego, California, at contractor facilities or Naval Base San Diego and is expected to be completed by March 2021. The exercising of these options ensures continued facilities and human resources capable of completing complex, emergent and continuous maintenance, repair, modernization and CNO availabilities on amphibious ships assigned to or visiting the port. Awards under Option Period Four have an estimated cumulative value of $171,876,527. No funding is obligated at the time of award. The Southwest Regional Maintenance Center, San Diego, California, is the contracting activity. Manson/Connolly Seal Beach JV, Seattle, Washington, is awarded $66,530,000 which provides for exercise of Options One, Two and Three under a firm-fixed-price contract for the construction and building operations of Ammunition Pier, Naval Weapons Station Seal Beach, the reconstruction of Anaheim Bay Road, and the construction of the Smoke Shack Building. Work will be performed in Seal Beach, California, and the performance period will be extended for an additional 600 calendar days. The work includes labor, supervision, management, tools, materials, equipment, facilities, transportation, incidental engineering and other items necessary to provide dredging, constructing and several building operations. After award of these options, the total cumulative contract value will be $154,677,000. Fiscal 2020 military construction funds in the amount of $66,530,000 are obligated on this award and will not expire at the end of the current fiscal year. Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-19-C-2450). Northrop Grumman Systems Corp., Bethpage, New York, is awarded a $49,143,009 cost-plus-fixed-fee and cost-only modification to a previously awarded contract (N00024-17-C-6311) for engineering services to support the Littoral Combat Ship Mission Modules Program. Work will be performed Bethpage, New York (32%); Mayport, Florida (18%); San Diego, California (18%); Port Hueneme, California (18%); Pittsfield, Massachusetts (8%); Panama City, Florida (1%); Washington, District of Columbia (1%); and various other locations less than one percent (4%). Engineering services will be provided to support the existing efforts of the Littoral Combat Ships Mission Modules Program. Incidental other direct cost items are also provided in support of said engineering services. Work is expected to be complete by March 2021. Fiscal 2020 operations and maintenance (Navy); fiscal 2018 and 2020 other procurement (Navy); fiscal 2020 research, development, test and evaluation (Navy); and fiscal years 2014, 2015, 2016 and 2017 shipbuilding and conversion (Navy) funding in the amount of $21,857,006 will be obligated at time of award. Funding in the amount of $18,825,998 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. L-3 Harris, Northampton, Massachusetts, is awarded a $14,181,070 firm-fixed-price modification to a previously-awarded contract (N00024-16-C-5366) to exercise options for Mk 20 Mod (automatic grenade launcher) 1 Electro-Optical Sensor Systems, radar cross-section kits, shock ring kits and spares for both the Navy and Coast Guard (USCG). Work will be performed in Northampton, Massachusetts, and is expected to be complete by March 2022. This option exercise is for additional Mk 20 Mod 1 Electro-Optical Sensor Systems, radar cross-section kits, shock ring kits and spares to support the Mk 34 gun weapon systems in support of anti-air warfare and anti-surface warfare. The Mk 20 EOSS is a major component of the gun weapon systems employed by the Guided Missile Destroyer (DDG 51 class); Ticonderoga-class cruiser (CG 47 class); and the USCG's offshore patrol cutters. Fiscal 2020 other procurement (Navy); fiscal 2020 shipbuilding and conversion (Navy); and fiscal 2020 other procurement (USCG) funding in the amount of $14,181,070 will be obligated at time of the award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Northrop Grumman Systems Corp. - Marine Systems, Sunnyvale, California, is awarded a $11,244,675 cost-plus incentive-fee, contract modification (P00003) to a previously awarded contract (N00030-19-C-0015) for technical engineering services, design and development engineering, component and full scale test and evaluation engineering, and tactical underwater launcher hardware production to support the development and production of the Common Missile Compartment. 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Little,* National City, California (N55236-16-D-0005); South Bay Sand Blasting and Tank Cleaning Inc.,* San Diego, California (N55236-16-D-0006); and Surface Technologies Corp.,* Atlantic Beach, Florida (N55236-16-D-0007), is awarded $10,000,000 for a combined overall ceiling increase due to modifications under previously-awarded indefinite-delivery/indefinite-quantity, multiple-award contracts to exercise Option Year Four in support of deck covering removal and non-skid installation services onboard Navy ships. Work will be performed in San Diego, California, and may include Oceanside, California. Each contractor shall provide all management, administrative services, materials, tools, equipment, labor, rigging, scaffolding, utilities (i.e. air, water and electricity, etc.) and required services and support to accomplish deck covering removal and non-skid installation onboard Navy ships within a 50-mile radius of San Diego. Work is expected to be complete by April 2021. Actual funding will be identified per individual task order. No funding is obligated at the time of award. The Southwest Regional Maintenance Center, San Diego, California, is the contracting activity. Engility Corp., Andover, Massachusetts, is awarded an $8,782,647 modification (P00012) to a previously awarded, cost-plus-fixed-fee, cost reimbursable, firm-fixed-price delivery order (N68936-19-F-0307) against a General Services Administration One Acquisition Solution for integrated services multiple award contract. Work will be performed in Point Mugu, California (90%); Patuxent River, Maryland (1.79%); Whidbey Island, Washington (1.79%); Edwards Air Force base, California (1.79%); Huntsville, Alabama (1.79%); China Lake, California (1.07%); Dayton, Ohio (1.07%); El Segundo, California (0.70%); and is expected to be completed in March 2021. This modification exercises an option for engineering, technical and programmatic support services for the development of electronic attack and electronic warfare products within the Airborne Electronic Attack Integrated Program. Fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $75,000; and fiscal 2020 operations and maintenance (Navy) funds in the amount of $156,000 will be obligated at the time of award, $156,000 of which will expire at the end of the fiscal year. The Naval Air Warfare Center Weapons Division, Point Mugu, California, is the contracting activity. Penn State University Applied Research Lab, University Park, Pennsylvania, is awarded an $8,404,271 cost-plus-fixed-fee contract for the Advanced Broadband Navigation Sonar System Future Naval Capabilities Program. This contract provides for the development and demonstration of technologies associated with continuous subsea autonomous navigation by developing and demonstrating improvements to navigational sonar systems. Improved estimation of positon and velocity afforded by advanced sonar processing will provide naval platforms with increased navigational performance for undersea platforms. Work will be performed in University Park, Pennsylvania, and is expected to be complete by March 2023. The total cumulative value of this contract is $8,404,271. The base period is $8,404,271, and no options are to be exercised. The action will be incrementally funded with an initial obligation of $1,925,613 utilizing fiscal 2019 research, development, test and evaluation funds, and will expire at the end of the current fiscal year. 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U.S. Army Corps of Engineers, Savannah, Georgia, is the contracting activity. Sierra Four Industries,* Fort Collins, Colorado (W15QKN-20-D-0013); Culmen International,* Alexandria, Virginia (W15QKN-20-D-0014); Multinational Defense Services,* McLean, Virginia (W15QKN-20-D-0015); Ultra Defense Corp.,* Tampa, Florida (W15QKN-20-D-0016); Global Ordnance LLC,* Sarasota, Florida (W15QKN-20-D-0017); Blane International, Cumming, Georgia (W15QKN-20-D-0018); and Greystone LLC, Pace, Florida (W15QKN-20-D-0019), will compete for each order of the $350,000,000 firm-fixed-price contract for procurement of weapons, parts, optics, accessories, tools and manuals for various commercial, foreign, non-standard and U.S. obsolete weapon systems. Bids were solicited via the internet with 11 received. Work locations and funding will be determined with each order, with an estimated completion date of March 12, 2025. U.S. Army Contracting Command, New Jersey, is the contracting activity. The Dutra Group, San Rafael, California, was awarded a $21,550,000 firm-fixed-price contract for West Coast Hopper Maintenance Dredging. Bids were solicited via the internet with two received. Work will be performed in Hammond, Oregon; and Samoa, California, with an estimated completion date of March 15, 2021. Fiscal 2020 civil operation and maintenance funds in the amount of $21,550,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Portland, Oregon, is the contracting activity (W9127N-20-C-0009). Mission Essential LLC, New Albany, Ohio, was awarded a $12,406,907 cost-plus-fixed-fee contract for linguist, translation, interpretation and transcription services in support of U.S. Army Africa Command. Bids were solicited via the internet with one received. Work will be performed in New Albany, Ohio, with an estimated completion date of Dec. 14, 2020. Fiscal 2020 operations and maintenance, Army funds in the amount of $12,406,907 were obligated at the time of the award. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity (W50NH9-20-C-0008). DEFENSE THREAT REDUCTION AGENCY Booz Allen Hamilton, McLean, Virginia (HDTRA1-16-C-0012), is issued a contract modification (P00036) to exercise Option Period Four line items with a ceiling value of $37,892,180, with an effective date of May 27, 2020. This does not include the value of the unexercised options. This contract is for advisory and assistance services in support of the Program Integration Division of the Cooperative Threat Reduction Program. Performance of this contract will take place at Lorton, Virginia; Fort Belvoir, Virginia; and at various locations throughout the world. The anticipated completion date of this option period is May 26, 2021. The contract was a competitive acquisition; the government received one offer. The Defense Threat Reduction Agency, Fort Belvoir, Virginia, is the contracting activity. AIR FORCE General Dynamics Ordnance and Tactical Systems Inc., Garland, Texas, has been awarded a $26,464,692 firm-fixed-price contract for warhead assemblies. This contract provides for the additional procurement of BLU 111 Engineering Change Proposal warhead assemblies. Work will be performed in Garland, Texas, and is expected to complete by June 2021. Fiscal 2018, 2019 and 2020 procurement funds in the full amount are being obligated at the time of award. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity (FA8681-19-C-0015). Alliant Techsystems Operations LLC, doing business as Northrop Grumman Defense Systems, Rocket Center, West Virginia, has been awarded a $24,695,129 firm-fixed-price contract for warhead assemblies. This contract provides for the additional procurement of BLU 111 Engineering Change Proposal warhead assemblies. Work will be performed in Rocket Center, West Virginia, and is expected to complete by June 2021. Fiscal 2018, 2019 and 2020 procurement funds in the full amount are being obligated at the time of award. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity (FA8681-19-C-0016). Major Tool and Machine Inc., Indianapolis, Indiana, has been awarded a $22,796,400 firm-fixed-price contract for warhead assemblies. This contract provides for the additional procurement of BLU 111 Engineering Change Proposal warhead assemblies. Work will be performed in Indianapolis, Indiana, and is expected to complete by June 2021. Fiscal 2018, 2019 and 2020 procurement funds in the full amount are being obligated at the time of award. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity (FA8681-19-C-0013). U.S. TRANSPORTATION COMMAND UPDATE: A contract announced on Nov. 8, 2019, with an estimated program value of $5,700,000,000, has added Canadian Commercial Corp., Ottawa, Ontario, Canada (HTC711120DR008), as one of 18 awardees to provide worldwide Federal Aviation Regulation Part 135 airlift services utilizing fixed and/or rotary wing aircraft to transport Department of Defense and other federal agency personnel and cargo. (Awarded March 12, 2020) *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2111974/source/GovDelivery/

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