February 28, 2020 | International, Aerospace
Steve Trimble
ORLANDO, Florida—Lockheed Martin sees Poland's defense industry as a potential low-cost manufacturing source for the F-35 program, as “upward pressure” continues to grow on aircraft prices beyond Lot 14 partly due to the loss of Turkey as a low-cost manufacturing source.
“Poland is a new opportunity to provide higher quality and lower cost,” said Greg Ulmer, Lockheed's vice president and general manager of the F-35, speaking to journalists at the Air Warfare Symposium here.
Last month, Poland signed an order to buy 32 F-35As from production lots 16-23. The acquisition helps the NATO member that shares a border with Russia to replace its remaining fleet of Soviet-era fighters. But the deal also opens a new industrial source for the overall program.
Meanwhile, the U.S.-led Joint Program Office is still working out procedures for finally expelling Turkey from the F-35 supply chain. A decision by Ankara last July to accept deliveries of Russian S-400 air defense systems prompted the U.S. government to cancel Turkey's remaining F-35 orders and suspend the country from participating in the program. An executive steering group is continuing to finalize plans to expel Turkey's companies, Ulmer said.
The loss of Turkey's industrial base comes as the F-35 production system enters a transition period. After annual output more than doubled to 134 aircraft in 2019 from 66 in 2017, the pace of growth is slowing, with about 170 deliveries expected by 2023 as upgraded Lot 15 jets roll off the assembly line. The production ramp-up helped Lockheed dramatically lower prices, with F-35As from Lot 14 delivered in 2022 projected to cost $78.9 million each.
As the pace of the ramp-up slows, Lockheed is starting to see “upward pressure” on recurring procurement costs after Lot 14, Ulmer said. A request for proposals sent by the U.S. program office to Lockheed recently for Lot 15 includes a greater variance between guaranteed orders and priced options than the company has seen before, Ulmer said. The minimum number would decline in annual production after Lot 14, he said, and the maximum could increase deliveries.
The insertion in Lot 15 of Technical Refresh 3 upgrades under the Block 4 modernization program should not change recurring production costs, Ulmer added. The upgrades, which include a new integrated core processor, panoramic cockpit display and additional computer memory, should be a “cost neutral” upgrade, Ulmer said.
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This new four-year contract award will provide the combat systems teams in DE&S Ship Acquisition NSDG with essential engineering outputs. QinetiQ will lead this work, which includes expertise from BMT and...
October 21, 2020 | International, C4ISR, Security, Other Defence
HANOI, Vietnam — Japanese Prime Minister Yoshihide Suga, in his first overseas summit since taking office last month, agreed with his Vietnamese counterpart to step up defense and security cooperation in the face of China's expanding influence in the region. In talks in Hanoi on Monday, Suga and Vietnamese Prime Minister Nguyen Xuan Phuc set a basic agreement allowing Japan to export defense equipment and technology to Vietnam. Japan has been pursuing such pacts in recent years to bolster ties with Southeast Asian countries and sustain its own defense industry. Suga said his four-day trip to Vietnam and later Indonesia was key to pursuing multilateral economic and security cooperation to counter China's growing power and protect sea lanes in disputed areas of the South China Sea. “Vietnam is crucial to achieving our vision of ‘the Free and Open Indo-Pacific,' and our valuable partner,' ” Suga told a news conference after his meeting with Phuc. “Japan, as an Indo-Pacific nation, will continue to contribute to the peace and stability in this region.” Suga said Vietnam, at the center of the region, was the most suitable destination for his first trip abroad as Japan's leader. Neither of the two leaders mentioned China by name in their news conference. Phuc said the peace and stability of the South China Sea should be protected by the rule of law, not unilaterally by force or threats. “Vietnam appreciates that Japan, one of the world's leading powers, is actively contributing its efforts to maintain peace and stability in the region and in the world,” Phuc said. In a speech later Monday at Vietnam-Japan University, Suga said that Japan's “Free and Open Indo-Pacific” concept and “ASEAN Outlook on the Indo-Pacific,” formulated by the Association of Southeast Asian Nations in 2019, share values such as rule of law, openness, transparency and freedom. Suga expressed strong support for their vision, and said together Japan and the Association of Southeast Asian Nations can achieve a peaceful and prosperous future. “Unfortunately in this region, there is a move in the South China Sea that goes against the rule of law and openness stated in this ASEAN Outlook, and Japan strongly opposes any attempt that escalates tensions in the South China Sea,” Suga said in his speech, hinting at China's growing assertiveness in the area. Japan already has defense equipment transfer deals with the U.S., Britain and Malaysia, among other countries. Vietnam is a 12th partner, while Japan is still negotiating deals with Indonesia and Thailand. In its first actual delivery of such exports, Japan in August exported a radar surveillance system to the Philippines. Details of possible equipment sales were not mentioned, but Suga called the agreement “a major step” for a bilateral defense cooperation, saying he expects further developments. Japan partially lifted its ban on military equipment and technology transfer in 2014 as part of former Prime Minister Shinzo Abe's efforts to build Japan's defense capabilities. Suga and Phuc signed other agreements to cooperate in a range of economic fields and on anti-terrorism measures. The two sides also agreed to ease entry bans and allow short-term business visits and reopen flights between Vietnam and Japan. Such travel has been very tightly restricted due to the pandemic, but both countries have managed to somewhat stabilize COVID-19 outbreaks. Suga also promised to provide support for Vietnamese workers in Japan affected by the pandemic's hit to the economy. Vietnamese accounts for more than half of the foreign workers Japan has accepted in recent years to make up for its declining and aging population. Japan is one of Vietnam's top trading partners with two-way trade of $28.6 billion so far this year. Japan is also Vietnam's largest overseas aid donor, providing $23 billion as of 2019 and accounting for more than a quarter of Vietnam's foreign loans. The government has been trying to entice Japanese companies to invest in Vietnam and other Southeast Asian countries to lessen Japan's dependence on manufacturing and other businesses in China. On Monday, Japan and Vietnam agreed on the need to cooperate on diversifying supply chains — a lesson Japan learned from its dire shortages of surgical masks and protective gowns earlier this year due to heavy dependence on Chinese imports. In August, Vietnam agreed to buy six coast guard patrol boats worth $345 million from Japan. The country is seeking to improve its maritime defenses amid China's continuing development and militarization of artificial islands in contested waters of the South China Sea. Progress in talks between ASEAN and China over the disputes appears to be at a standstill. Suga's predecessor Abe also chose Vietnam as the first country he visited after taking office. Suga is the first foreign head of a state to visit Vietnam since the country closed its borders to contain COVID-19. https://www.defensenews.com/global/asia-pacific/2020/10/19/japan-to-export-defense-tech-to-vietnam-under-new-agreement/
January 14, 2020 | International, Aerospace
Gareth Jennings, London Switzerland has issued a second request for proposal (RFP) for its Air2030 requirement to procure new combat aircraft and ground-based air defence (GBAD) systems. The supplementary solicitation, which came about 12 months after the first RFP, was issued by the country's Armasuisse defence procurement agency on 10 January. As noted by the Federal Department of Defence, Civil Protection, and Sport (VBS [previously DDPS]) that announced the new RFP, the second request builds on data already gathered from tests and evaluations of the five candidate fighter aircraft and two GBAD types. For the requirement to replace the Swiss Air Force's current Northrop F-5E/F Tiger II and Boeing F/A-18 Hornet fleets, Air2030 is considering the Eurofighter Typhoon, Dassault Rafale, Boeing F/A-18E/F Super Hornet, Saab Gripen E, and Lockheed Martin F-35A Lightning II Joint Strike Fighter (JSF). For the GBAD requirement, Air2030 is considering the Eurosam SAMP/T and Raytheon Patriot. For the fighter aircraft element, the companies contacted via the government authorities are requested to submit the most advantageous offer for Switzerland. The proposal should include prices for 36 and 40 aircraft (including logistics and weapons), as well as other defined industrial aspects of the bid including offsets. "The starting point for determining the number of fighter aircraft are the requirements to cope with a situation of increased tension. In such a situation, the Swiss Air Force must be able to permanently conduct air patrols with at least four aircraft for at least four weeks in order to preserve air sovereignty, prevent unauthorised use and violations of Swiss air space, and thus contribute to keep Switzerland out of armed conflict. In addition, the Swiss Air Force will use the new fighter aircraft for air policing around the clock, and, in case of armed attack, defend the air space for a limited period of time and support the ground forces," the RFP said. https://www.janes.com/article/93660/swiss-issue-second-rfp-for-fighter-gbad-replacements