Joint venture with Ukrainian partner: Rheinmetall to produce artillery ammunition in Ukraine

On the same subject

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  June 10, 2022 | International, Land

  From night vision to ground vehicles, Israeli firm Elbit eyes US expansion

  In a Breaking Defense interview, CEO of Elbit's US arm Raanan Horowitz describes diverse, aggressive push in the US.

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  April 30, 2020 | International, Aerospace

  The new Air Force One just racked up its first cost overrun

  By: Valerie Insinna WASHINGTON — Boeing will have to pay $168 million out of pocket to cover increased costs on the VC-25B Air Force One replacement program, the company said Wednesday. Boeing attributed the overrun to “engineering inefficiencies” caused by the impact of COVID-19, but Chief Financial Officer Greg Smith said the program remains on schedule with a projected delivery of the first VC-25B in 2024. However, Boeing's quarterly report to the Security and Exchange Commission noted future risk to the program's cost and schedule as a result of the engineering challenges. “We believe these inefficiencies will result in staffing challenges, schedule inefficiencies and higher costs in the upcoming phases of the program,” the company stated in the report. It was not immediately clear how work on the VC-25B program had been disrupted. “That charge was really associated with COVID-19,” Smith told reporters in an April 29 phone call. “As we have folks working virtually — particularly on the engineering side — as well as that's gone, we certainly experienced some inefficiencies that has caused us to re-evaluate our estimates to complete those efforts. And that's essentially what you saw today in our results and the charge associated with that.” Smith added that although the program team has done a “good job” of managing the program in the face of changes caused by the novel coronavirus pandemic and is “executing very well on many fronts,” Boeing could not mitigate the added cost to the program this financial quarter. Air Force acquisition executive Will Roper said he spoke with Boeing Defense CEO Leanne Caret last night about the problem, but because the issue was “late breaking,” he referred detailed questions to the program office. On Wednesday night, the Air Force released a statement that — like Boeing — attributed the cost increase to “engineering inefficiencies.” Just two weeks ago, Roper praised the progress of the program, which used virtual tools to complete its critical design review in March and wrap up a modification readiness review in April. At the time, the program was on schedule with no disruptions due to COVID-19, he said then. The Air Force One replacement drew considerable attention in 2016 after then-President-elect Donald Trump tweeted that the program was too expensive and should be cancelled unless the cost—then projected as more than $4 billion—came down. In 2018, the Air Force awarded Boeing a $3.9 billion fixed-price contract to modify two 747s into the VC-25B configuration. " There has not been an increase to the $3.90B firm-fixed price contract with Boeing or the $5.3B VC-25B total acquisition cost," said Air Force spokeswoman Ann Stefanek. Although the total price of the program is estimated to hit $5.3 billion once ancillary costs such as new hangars and revised technical manuals are included, the fixed-price ceiling on the $3.9 billion deal ensures that Boeing will have to pay for any cost growth incurred while building the two new Air Force Ones. In February, Boeing began making structural changes to two Boeing 747s at its facility in San Antonio, Texas — paving the way for those jets to become VC-25Bs. The jets will also receive upgrades including enhanced electrical power, specialized communication systems, a medical facility, a customized executive interior and autonomous ground operations capabilities. “As planned in the baseline schedule, the next phase of modification is on course to begin in June 2020,” Stefanek said. https://www.defensenews.com/air/2020/04/29/the-new-air-force-one-just-racked-up-its-first-cost-overrun/

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  May 22, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

  BAE Makes Big Bet On Small Companies: FAST Labs

  By THERESA HITCHENS BOSTON: BAE Systems, the third-largest defense contractor in the world, is funding innovative small startups to get innovative technology quickly to its Defense Department customers. Through an initiative called FAST Labs, BAE is both providing seed capital directly to startups and funding a number of accelerators to widen the potential market. The standard tactics include simply buying a smaller company to gain its technology or investing in a startup in order to control the direction of its research. Instead, BAE's FAST Labs is attempting to serve as a middle man connecting startups with DoD customers and BAE's various units. “By giving [the startups] the feasibility money, we can expose them to those harsh requirements that exist in the aerospace and defense world, but we can also in turn do social engineering inside our company,” Jerry Wohletz, the vice president and general management of BAE FAST Labs, told me. The idea is to introduce the startups' designs to BAE's factory and engineering work force, he said, “because we need to get it out of R&D land and get it into those products and services” that BAE knows its defense customers are looking for. FAST Labs is focused on research related to next-generation electronics, intelligent autonomous systems, cyber, electronic warfare, and sensors and processing. Wohletz explained that BAE does in-house research on capabilities that are solely of interest to DoD and the Intelligence Community, but it is reaching out to startups in order to partner on products and services based on commercial market needs. “A lot of aerospace and defense companies have venture capital funds,” Wohletz said. “That's not what we are trying to do. This is not an equity play to drive bottom line performance. We talk here about innovation velocity. We want speed to market.” Therefore, BAE is also putting its money — but more importantly its time — into a number of technology accelerators, such as Techstars in Boston, Capitol Factory in Austin, Texas, and MASSChallenge with hubs in both cities. FAST Labs has a team of scouts whose job is to attend pitches all across the country. “This is not based on ownership. We leave them their freedom,” Francesca Scire-Scappuzzo, who heads the scout team, told me. “We want innovation not just to support our market, we want to support their own innovation” for the commercial market. “Other defense contractors are trying to get involved with venture capital, but they for the most part don't really get it. BAE was in early, and they had the benefit of being linked with us,” Lt. Col. Dave Harden, chief operating officer of AFWERX, the Air Force's innovation hub, told me during the Techstars Air Force Accelerator Demo Day here last Thursday. Indeed, BAE cosponsored the event, and put upfront investment in at least three of 10 start-up companies participating. Neither Wohletz or Scire-Scappuzzo would tell me the size of BAE's budget for startup investment, but Wohletz said “it's getting bigger every year.” Further, the company is using accelerators not just to help itself innovate, Wohletz said, but also to find foreign companies to partner with in bids where the buying country requires offsets, such as India. “It's a completely different way of looking at this than we have done in the past,” he summed up. https://breakingdefense.com/2019/05/bae-makes-big-bet-on-small-companies-fast-labs/