Back to news

June 27, 2019 | International, Other Defence

Lockheed braces for German blowback over cost of missile-defense pitch

By:

PARIS — Lockheed Martin executives are preparing for a stiff debate in Germany about the price tag of a next-generation anti-missile system formally proposed to Berlin just days ago.

“I think the price will be a challenge, and we'll have to negotiate to come to an agreement,” Frank St. John, executive vice president of the company's Missiles and Fire Control business, told Defense News in an interview at the Paris Air Show last week. “But we're going to do better than the early expectations of the price.”

That is a reference to a figure that surfaced during the spring following testimony of a senior German defense official before parliament. At the time, the cost estimate for the TLVS program, short for Taktisches Luftverteidigungssystem, was €8 billion (U.S. $9 billion).

St. John declined to name the price ultimately included by Lockheed Martin and its German partner MBDA in their June 21 proposal. But he suggested the figure would lie significantly enough below the €8 million mark to be considered more than cosmetic.

“I still anticipate a healthy debate and discussion about the pricing and the scope of the program through the negotiation process,” he said.

Negotiations are expected to begin as soon as the German Defence Ministry has analyzed the proposal, described by German officials as being thousands of pages long. If the government and Lockheed Martin come to an agreement, the proposed investment would go before lawmakers for a decision, probably late this year or early next year.

German plans for the TLVS program are based on the Medium Extended Air Defense System, conceived about 10 years ago as a replacement for the Patriot fleets of the United States, Germany and Italy. Soldiers had criticized the decades-old Patriot system as too cumbersome to deploy and maintain in the field.

Germany has stuck with MEADS even after the United States and Italy dropped off, with officials in Berlin arguing the prospect of developing a truly novel defensive weapon was worth the gamble of going it alone.

Defense officials in Germany have since added new requirements. For one, Berlin wants full control over all components, as opposed to buying an American weapon whose inner workings are shrouded in secrecy. In addition, the German government wants to be able to shoot down what officials call “advanced threats” (code for hypersonic missiles, such as those developed by Russia).

According to St. John, Lockheed's latest TLVS proposal comes with the promise of intercepting such threats, though probably not the most sophisticated ones. “And then there is a provision in the contract and in the design of the system to add capability as time goes by and as the threat evolves,” he said.

One of the sticking points for the proposed program — German access to secret performance data of the weapon's principal interceptor, the so-called MSE missile — appears to have been resolved, St. John said. Until late last year, Berlin was unhappy with U.S. Army restrictions placed on the information, which Germany considers crucial for adapting the system to its needs.

Senior Pentagon leaders intervened to help resolve the logjam after Defense News reported on the issue in December 2018.

“We believe that we have coordinated that with the Department of State and the appropriate folks at the Department of Defense, and that the German customer is going to have access to the data they need to evaluate the system,” St. John said. “They'll also have access to the data they need to recommend future modifications. We think that issue is resolved now.”

At the same time, he added, another round of approvals will be needed from the U.S. government as contract negotiations with Germany progress. “We'll have to go back one more time ... to verify that everything is still in a good place."

Patriot-maker Raytheon issued a statement Monday reiterating its readiness to snatch the missile-defense contract from arch enemy Lockheed Martin if the TLVS program goes south. The company especially played up the option of connecting an upgraded Patriot system to a lower-tier system, made by Rheinmetall, to defend against drones and artillery rounds.

Ralph Acaba, president of Raytheon's Integrated Defense Systems business, said his company is increasingly banking on a layered air defense concept in which different systems — perhaps owned by different countries — take on various threat types. “No single nation, no single system can do it all when it comes to missile defense,” he told Defense News at the Paris Air Show.

According to Joseph de Antona, vice president for business development and strategy in Acaba's division, Raytheon does not consider Lockheed's TLVS bid a threat to Patriot sales. “If a country makes a decision, it's our responsibility to honor and recognize that,” he said. At the same time, he added, Raytheon plans to continue to advise the German government on new threats and how to counter them.

The company is “absolutely” still talking to the Berlin government to that effect, de Antona told Defense News.

German lawmakers on the Defence and Budget committees on Wednesday approved roughly €120 million to upgrade the country's Patriot fleet to the newest configuration, known as “3-plus.” According to Raytheon, Berlin's investments to keep Patriot up to date had been lagging since the decision in favor of TLVS.

Meanwhile, the proposed new system's funding profile has begun to take shape. Berlin wants to spend €3.36 billion on TLVS between 2021 and 2028, according to a draft government budget proposal meant for deliberation by lawmakers after the summer recess.

That figure likely would be too low to finance Lockheed's entire program proposal. But the draft budget includes a provision permitting a transfer of funds from the envisioned €5.6 billion budget for a new heavy transport helicopter.

The two contenders for that program are Boeing and Lockheed Martin.

https://www.defensenews.com/digital-show-dailies/paris-air-show/2019/06/26/lockheed-braces-for-german-blowback-over-cost-of-missile-defense-pitch/

On the same subject

  • Is a light attack aircraft coming to the Corps?

    June 11, 2018 | International, Aerospace

    Is a light attack aircraft coming to the Corps?

    By: Shawn Snow The Senate Armed Services Committee plans to dish out millions for a Marine light attack aircraft and the Corps' futuristic sea drone, known as the MUX. The committee voted 25-2 on May 24 to give $100 million for a Marine light attack aircraft and $100 million for the MUX sea drone in its markup of the fiscal year 2019 annual defense legislation. The Air Force is still in pursuit of a light attack aircraft. Two aircraft, Textron Aviation's AT-6 Wolverine and the A-29 Super Tucano, are currently undergoing three months of demonstrations, which kicked off in May at Holloman Air Force Base, New Mexico. So, what will the Corps choose? “The Marine Corps is monitoring the Air Force-led Light Attack Experiment to procure a cost-effective, observation and attack (OA-X) air platform for employment in permissive environments, with the intent to employ such an asset as a joint force capability,” Marine spokesman Capt. Christopher Harrison told Marine Corps Times in an email. “The SASC's decision to authorize $100 million for a light attack platform is only reflected in a policy bill ― nothing has been appropriated to this program yet.” Light attack aircraft are seen as a cost-effective means to deliver close-air support in more permissive environments like Iraq and Afghanistan. The A-29 Super Tucano is already fielded by the Afghan air force. Military officials in the past have come under criticism for using expensive aircraft to destroy low key targets. For instance, on Nov. 20, 2017, an F-22 Raptor was used for the first time in Afghanistan, to destroy a narcotics lab. Gen. John Nicholson, the commander of U.S. forces in Afghanistan, said the F-22 was selected because of its ability to carry the small diameter bomb. As for the MUX, the Corps submitted a request for information in March that spelled out some details the Marine Corps wants in its new futuristic drone. The Corps is looking for a drone to compliment the long distances of some of its other aircraft like the MV-22. According to the March RFI, the Marines want the MUX to be able to fly 700 nautical miles and carry a 9,500-pound payload. The Corps wants its future sea drone to have strike capabilities, surveillance and electronic warfare. Military.com first reported that the Senate Armed Services Committee voted to give $100 million for a Marine light attack aircraft. https://www.marinecorpstimes.com/news/your-marine-corps/2018/06/04/is-a-light-attack-aircraft-coming-to-the-corps/

  • Contract Awards by US Department of Defense - November 5, 2018

    November 7, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - November 5, 2018

    AIR FORCE Lockheed Martin Corp., Orlando, Florida, has been awarded a $350,000,000 increase to an indefinite-delivery/indefinite-quantity contract for Joint Air-to-Surface Standoff Missile (JASSM) production support. Contractor will provide lifecycle support for all efforts related to JASSM, Long Range Anti-Ship Missile, JASSM-Extended Range, and any JASSM variant in the areas of system upgrades, integration, production, sustainment, management and logistical support. Work will be performed in Orlando, Florida, and is expected to be completed by April 17, 2022. This award is the result of sole-source acquisition. No funds are being obligated at the time of award. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity (FA8682-17-D-0002). General Atomics - Aeronautical Systems Inc., Poway, California, has been awarded a $263,403,355 firm-fixed-price contract for MQ-9 Reaper production. This contract provides for the production of the MQ-9 Reaper aircraft in the fiscal 2018 production configuration. Work will be performed at Poway, California, and is expected to be complete by Nov. 30, 2021. This award is the result of a sole-source acquisition. Fiscal 2017 and 2018 aircraft procurement funds in the amount of $263,403,355 are being obligated at the time of award. The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8620-19-F-2374). Raytheon Co., El Segundo, California, has been awarded an $11,532,469, competitive, cost-plus-fixed-fee contract for the research and development of Millimeter-Wave Digital Arrays (MIDAS) Defense Advanced Research Projects Activity program. The contractor will address the MIDAS program goals through innovations in digital tile architecture and integrated, scalable apertures with groundbreaking transmit and receive components. Work will be performed in El Segundo, California, and is expected to be completed by Nov. 4, 2020. Fiscal 2018 research and development funds in the amount of $2,928,098 are being obligated at the time of award. Air Force Research Laboratory, Wright Patterson Air Force Base, Ohio, is the contracting activity (FA8650-19-C-7993). DEFENSE LOGISTICS AGENCY Burlington Apparel Fabrics, Greensboro, North Carolina, has been awarded a maximum $40,632,816 firm-fixed-price, indefinite-delivery contract for blue wool cloth. This was a competitive acquisition with one response received. This is a one-year contract with four one-year option periods. The maximum dollar amount is for the life of the contract. Location of performance is North Carolina, with a Nov. 4, 2023, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2019 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1112). Burlington Apparel Fabrics, Greensboro, North Carolina, has been awarded a maximum $40,563,765 firm-fixed-price, indefinite-delivery contract for blue poly/wool cloth. This was a competitive acquisition with one response received. This is a one-year contract with four one-year option periods. The maximum dollar amount is for the life of the contract. Location of performance is North Carolina, with a Nov. 4, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1100). Southeast Power Systems of Orlando,* Orlando, Florida, has been awarded a maximum $8,247,300 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for diesel engine fuel pumps. This was a sole-source acquisition using justification 10 U.S. Code 2304(c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a three-year contract with no option periods. Location of performance is Florida, with a Nov. 4, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2022 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-19-D-0016). NAVY Transoceanic Cable Ship Co. LLC, Baltimore, Maryland, is awarded a $35,952,500 firm-fixed-price contract for the time charter services of a cable-laying and repair ship. This contract contains options, which if exercised, would bring the contract value to $224,619,153. Work will be performed worldwide, and is expected to be completed Jan. 10, 2019. If options are exercised, work will continue through November 2023. Fiscal 2019 operations and maintenance (Navy) funds in the amount of approximately $42,000,000 will be obligated at the time of award and will expire at the end of the current fiscal year. This contract was competitively procured with proposals solicited via the Federal Business Opportunities website and Navy Commerce Online website. Two offers were received. The Navy's Military Sealift Command, Norfolk, Virginia, is the contracting activity (N32205-19-C-3506). ExxonMobil Marine Ltd., Spring, Texas, was awarded a $16,572,038 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for worldwide delivery of lubricants and related support services to Military Sealift Command vessels, Navy ships, and other government-owned or government-chartered ships designated by the Military Sealift Command. This contract contains options, which if exercised, will bring the contract value to $86,602,374. Work will be performed worldwide and is expected to be completed by Nov. 3, 2019. If all options are exercised, work will continue through Nov. 4, 2023. Fiscal 2019 Navy working capital funds in the amount of $5,000 are obligated to cover the minimum-guarantee. Navy working capital funds will be obligated on individual delivery orders for the fiscal year when delivery orders are issued. This contract was competitively procured, with proposals solicited via the government-wide Point of Entry Federal Business Opportunities website, with four offers received in response to the solicitation. The Navy's Military Sealift Command, Norfolk, Virginia, is the contracting activity (N3220519D7000). (Awarded Nov. 2, 2018) General Dynamics Electric Boat Corp., Groton, Connecticut, is awarded a $13,888,444 cost-plus-fixed-fee modification to previously-awarded contract N00024-09-C-2104 for planning and execution of USS Indiana (SSN 789) post-delivery work period. Work includes long-lead-time material procurement, in preparation to accomplish the maintenance, repair, alterations, testing and other work on USS Indiana. Work will be performed in Groton, Connecticut, and is expected to be completed by April 2019. Fiscal 2018 shipbuilding and conversion (Navy) funding in the amount of $8,638,444 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding Conversion and Repair, Groton, Connecticut, is the contracting activity. The Boeing Co., St. Louis, Missouri, is awarded $12,106,016 for modification P00003 to a previously awarded cost-plus-incentive-fee contract (N00019-18-C-1022) in support of the Infrared Search and Track (IRST) Block II Phase 2 non-recurring engineering effort. This modification incorporates an engineering development model and upgrades two sets of IRST Block I system weapon replacement assemblies. Work will be performed in Orlando, Florida (73 percent); and St. Louis, Missouri (27 percent), and is expected to be completed in April 2022. Fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $6,500,000 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. *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1682676/

  • Army, Air Force try brain stimulation devices to improve troop brain function | Miltech

    January 20, 2022 | International, Land, C4ISR

    Army, Air Force try brain stimulation devices to improve troop brain function | Miltech

    Throw away those caffeine pills and that DFAC coffee - better brain stimulation may be on the way from the Army and Air Force.

All news