April 29, 2020 | International, Aerospace, Naval

Navy Looking to Buy Aircraft Engines as Civilian Demand Dwindles

By: Megan Eckstein

The Navy is moving forward with its plans to take advantage of a commercial aviation slowdown by accelerating new orders, buying spare parts and conducting depot maintenance – all in conjunction with the other services, to get the maximum benefit of what the industry has to offer even while combating the COVID-19 pandemic.

Navy acquisition chief James Geurts told reporters today that, both because customers are avoiding commercial air travel and because aviation manufacturing sites are being hit by the coronavirus, “commercial aviation is still remarkably challenged, and remarkably important because we do get a lot of benefit in the DoD from commercial aviation sector, from those companies that work in both areas. So we're working closely with them.”

Geurts had said two weeks ago that the Navy was early in the process of identifying what opportunities might exist to keep aviation-related production lines moving despite limited commercial demand, while also building up Navy readiness by boosting the inventory of spare parts or getting ahead of schedule on acquisition or maintenance efforts.

After Geurts made those remarks, his counterpart, Defense Department acquisition chief Ellen Lord, said that aviation was the hardest-hit sector in the defense industrial base due to the COVID-19 pandemic and response.

Today, asked what opportunity there was to get ahead on aviation acquisition and maintenance even amid the sector's great disruptions, Geurts told USNI News during a media teleconference that the effort is moving forward and that aviation propulsion would be a key focus.

“We're working closely with our partners in the other services so we have a whole-of-DoD approach to those companies in those efforts,” he said.

He added that his focus would be less about awarding new contracts and instead looking at rephasing or accelerating work, connecting companies with grants and loans they might not otherwise have access to, and more.

“We're looking at the full tools we have available and then trying to rapidly tailor those tools and the right mix to each individual sector and each individual situation,” he said.
“I don't see a giant DoD-level contract. I think it's more about synchronizing efforts and working closely with my counterparts in the other services so that we're working together to get the maximum benefit, and I think that's more an alignment of strategies and tools than in a large new kind of joint contract.”

For example, the Navy is looking at construction programs where “we may not have planned to buy the engine for three months, but maybe we can buy it now and gain some efficiency.”

On programs like the P-8A Poseidon, a military version of the popular Boeing 737, the Navy could find money within the program to stock up on parts, or to leverage Boeing depot repair capabilities not being used by commercial planes.

“There will be a natural limitation of funding and whatnot, so we can't do that infinitely, but we're looking to leverage all the different toolsets we have,” Geurts said.

Outside the Navy budget, Geurts said the Navy has been trying to help its smaller suppliers get connected with the Small Business Administration to apply for loans so they can keep their production moving or even accelerate. And in the Navy's own Small Business Innovative Research, the service has $250 million in awards that Geurts is trying to get out to industry as quickly as possible over the next couple months.

More broadly, Geurts said the Navy had already been taking a close look at its domestic and international supply chain and is in a good position now to be making informed decisions as the entire world faces disruptions from this pandemic.

In hard-hit Italy, for example, companies that make parts for the Marine Corps' amphibious combat vehicle (ACV) – which BAE Systems builds in partnership with Italian defense contractor Iveco, which designed the vehicle for the Italian Navy – have had to shut down.

“Everybody is working very aggressively to manage around it,” Geurts said, adding “there's nothing I would put in a crisis mode yet, we're just keeping an eye on it.”

He said for ACV and other programs that rely on international suppliers, the program offices are looking to rephrase elements of construction to account for certain components being delayed, or may look at using spare parts for already-fielded vehicles to support construction. The latter move, though, would have to be done carefully to balance both production and sustainment needs, he said.

https://news.usni.org/2020/04/28/navy-looking-to-buy-aircraft-engines-as-civilian-demand-dwindles

On the same subject

January 24, 2019 | International, Aerospace

Change of plans: Seoul decides to start from scratch with helo competition
By: Jeff Jeong SEOUL — It looked like Italy's aerospace group Leonardo was going to be an easy winner for South Korea's second batch of anti-submarine helicopters. The procurement program would seek 12 more AW-159 “Wildcat” helicopters, with no other competitors for the $840 million program. But the Defense Acquisition Program Administration, or DAPA, threw a curveball, deciding to accept a U.S. proposal for alternate option and to begin the competitive bidding process from the scratch. The plan for the maritime operational helicopter, or MOH, was originally to sign a direct commercial deal with a foreign helicopter maker, with three bidders — Leonardo, Lockheed Martin and NH Industries — showing interest. The two latter contenders failed to submit their proposals by the Oct. 31 deadline, leaving Leonardo seemingly as the only remaining bidder. According to sources from DAPA, however, the U.S. government in November sent a letter of price and availability of Lockheed Martin's MH-60R Seahawk, causing South Korea's arms procurement officials o rethink the acquisition approach. “We've decided to consider the U.S. FMS option,” DAPA spokesman Park Jung-eun told Defense News. “We're going to weigh in on both options of commercial and FMS contracts.” As dictated by acquisition regulation, two successive failed biddings mean that the agency can make a private contract with a sole bidder, but that's not mandatory. The agency is expected to issue a renewed request for proposals as early as March, according to DAPA officials. Leonardo would be a direct buy, while the Sikorsky bid would be a foreign military sale. Leonardo said in a statement that it would still pursue the South Korean naval helicopter program “in a fair and transparent manner.” A Leonardo spokesman said the AW-159 is optimized for the Korean theater of operations, pointing to an active electronically scanned array (AESA) radar for detecting North Korea's coastal weapon system and a missile firing range that is more than three times longer than Seahawk. “We do not really know about the details of the U.S. Navy's latest proposal,” a Lockheed Martin communications official said, declining to elaborate. “After an RFP is issued, we could be able to discuss with the service.” Pundits here expressed different reactions to the renewed MOH bidding process. Shin In-kyun, head of Korea Defense Network, a Seoul-based private defense think tank, said it's a better opportunity to acquire state-of-the-art naval helicopters with better performances. “The Seahawk is estimated to be more expensive by 20 to 30 percent than the Wildcat, but the former has performances about two times better than the latter,” said Shin. “The unit price of the MH-60R could be lowered through the FMS, as the U.S. and Indian Navies are also said to be procuring more than 40 MH-60Rs.” Shin Jong-woo, a senior analyst at the Korea Defense & Security Forum, said an FMS deal may not guarantee economic benefit for South Korea. “You give up offset programs should an FMS deal be made,” he said. “I'm not really sure how much the unit cost of the MH-60R could be lowered. If lowered, we may have to lose some optional functions of the helicopter.” Moreover, a possible MH-60R selection will bring more work to change the designs of warships, he added. “The Navy's existing warships, including the KDX-III Aegis destroyer, are not able to accommodate the MH-60R, so it's inevitable to change the design should the American helicopter be chosen.” The South Korean Navy currently operates eight AW-159s acquired under a 2012 deal. The helicopters fly missions aboard KDX-series destroyers and Incheon-class guided-missile frigates. The service plans to commission at least 12 more new frigates fitted with a flight deck and a hangar that can accommodate one Lynx helicopter. https://www.defensenews.com/2019/01/23/change-of-plans-seoul-decides-to-start-from-scratch-with-helo-competition
August 8, 2019 | International, Land

Soon to come to the Army: A high-power microwave to take out drone swarms
By: Jen Judson HUNTSVILLE, Alabama — The Army is planning to field a high-power microwave capability to take out drone swarms as part of its Indirect Fires Protection Capability system in development. Through the Army's Rapid Capabilities and Critical Technologies Office (RCCTO) the service is looking to get the capability fielded to a unit by 2024 with a demonstration of the capability planned in 2022, the RCCTO director said August 7 at the Space and Missile Defense Symposium. RCCTO's job is to serve as a bridge between the science and technology community and the program executive offices, helping bring technology out of development and into soldiers' hands, first on a small scale and then a larger scale when passed off to program offices. The RCCTO right now is focused entirely on hypersonics and directed energy weapons. The IFPC system is being developed to counter rockets, artillery and mortar, as well as cruise missiles and unmanned aircraft systems, and the means to do that would be through a system featuring multiple types of missiles and also a laser capability to take out threats. Adding lasers to the mix means decreasing the number of expensive shots that would be taken against very inexpensive weapons. The Army is working to initially field a 100-kilowatt laser capability on a Family of Medium Tactical Vehicles as part of the IFPC program with a plan to demonstrate the capability in 2022 and then field prototypes to a unit. And the RCCTO is also looking at how to field even more powerful lasers for the IFPC mission between 250 and 300 kilowatts. But the service recognizes it might be easier to disrupt the flight of multiple drones at once rather than try to take out each one with a laser. “Lasers can do things but if you are a combatant commander, there is a toolbox of things you need to be successful on the battle space,” Thurgood said. “It's not just one tool but a series of tools.” So the program is teaming with the Air Force's effort to develop a high power microwave capability, he said. The Air Force will do the research and development work, but the Army will supply them with funding to build prototypes. The goal is to demonstrate a high-power microwave capability in 2022 and then field the capability to a small unit, much like what the RCCTO will do with the IFPC high-energy laser system. If the laser and high-power microwave capability both work well in small units, then they will transition to programs of record within the IFPC program, Thurgood said. Earlier this year, the Army awarded a contract to Dynetics, who is partnered with Lockheed Martin and Rolls Royce, to build the 100-kilowatt laser system for IFPC. The Army is also rapidly fielding a 50-kilowatt laser on a Stryker. Raytheon and Northrop Grumman are competing to build the system and, in FY21, the two lasers will be tested on difficult threats. The service will choose on to build prototypes that will be fielded to a Platoon in FY22. https://www.defensenews.com/digital-show-dailies/smd/2019/08/07/the-armys-indirect-fires-protection-system-is-getting-a-high-power-microwave/
October 29, 2020 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

Italy defense budget rebounds despite coronavirus crisis
Tom Kington ROME — Italy has announced a major boost to its defense budget even as the country spends millions of euros battling the devastating effect of COVID-19 on its economy. Overall defense ministry spending is up 9.6 percent this year to €15.3 billion (U.S. $18.1 billion), with the procurement budget emerging as the big winner as it rises by 26 percent from last year if coupled with top-up spending from the industry ministry. “This is a very positive budget for the armed forces, especially for procurement during this challenging economic climate,” said Paolo Crippa, a defense analyst at the CESI think tank in Rome. The figures are included in Italy's 2020 budget, which should have been released in the spring, but was held up by the COVID-19 crisis which hit Italy hard in March and is now threatening the country again. This year's €15.3 billion defense ministry spending compares to just under €14 billion last year, signaling a halt in a series of year-on-year falls. Procurement takes up €2.8 billion of the budget, up 50 percent on last year, but for a true picture of Italian procurement spending the annual top-up for domestic procurement provided by the Italian industry ministry must be added, which amounts to €2.64 billion, also up from last year. The total to spend on procurement therefore comes to €5.45 billion, up 26 percent on last year's €4.32 billion. Of the other two other spending categories in the ministry budget, Maintenance and Operations rises 23 percent to €2.15 billion, while personnel spending remains stable at €10.4 billion. “The rise in M&O spending follows claims by generals that cuts were damaging military readiness,” said Crippa. The budget was drawn up by defense minister Lorenzo Guerini, a member of the center-left Democratic Party which governs in a coalition government with the anti-establishment Five Star party. Since first entering government in 2018, Five Star has softened its anti-military stance, which saw it initially push to scrap the F-35 program. This year, the F-35 program receives €800 million to help conclude the purchase of the first 28 of Italy's planned 90 aircraft buy. A further €126 million is also budgeted to get the purchase of the next 27 aircraft underway. Other ongoing programs that get more funding in 2020 include the purchase of 650 new VTLM 2 vehicles – an upgrade of the army Lince vehicle, as well as a mid-life refurbishment for Italy's Storm Shadow missiles and the purchase of T-345 and T-346 jet trainers. Further programs also getting a dose of regular funding are Italy's new, €1.17 billion LHD vessel the Trieste, a €2 billion acquisition of 150 new Centauro II wheeled tanks and a €974 million purchase of 16 new CH-47F helicopters. Comparing the total envisaged price tag of some programs in the budget to the price listed in last year's budget reveals costs are rising. A plan to buy four new U-212 NFS submarines has risen from €2.35 billion to €2.68 billion this year, a hike of over €300 million. The ongoing purchase of ten PPA naval vessels has risen over €400 million to €4.27 billion. Some programs appear for the first time in the budget, including two new “DDX” destroyers for the Navy. No money is earmarked in 2020 but €4.5 million is due to be used for a de-risking study beginning in 2021. A second new entry is a listing for a “multi-mission, multi-sensor” Gulfstream G-550 jet. Without stating how many aircraft Italy plans to order, the budget gives the total price tag of the program as €1.23 billion and states that funding will start in 2021. The capabilities of the platform listed include command-and-control, “electronic superiority” and “electronic protection of forces.” An Italian analyst who declined to be named said the program was a reprisal of a long nurtured Italian plan for a sensor platform dubbed JAMMS, which would offer signals intelligence, communications relay and radar capabilities. The Italian Air Force declined to comment on the program. An illustration of the aircraft in the budget document resembles Israel's “Shavit” Signals Intelligence Gulfstream. Italy already flies two Gulfstream 550 Conformal Airborne Early Warning aircraft it purchased from Israel's IAI in 2012 as part of a swap deal under which Israel purchased 30 M-346 trainers from Italian firm Leonardo. The budget document states that after getting underway, the new program will take onboard future technology advancements and the benefits of “international cooperation accords.” The analyst said, “There is a plan to buy the platform now since the Gulfstream G550 is going out of production, then add Israeli systems in return for purchases by Israel from Italian industry.” Programs on the military's wish list which do not have any funding earmarked yet also get a mention in the budget document, starting with investment in the U.K.-led Tempest program for a future sixth-generation fighter. But the absence of cash for the program, which the U.K. and Sweden have already invested in, risked making Italy the weakest partner in the trio, wrote Italian defense publication RID. “In this way, there is the risk that Italy's ability to influence the development decreases and it will be weaker when it comes to future talks on the dividing of manufacturing,” the publication stated. The document also confirms Italy's interest in joining the U.S. Future Vertical Lift helicopter initiative to build next generation helicopters, which is currently being pursued by the United States only. Government officials have already mulled investing in the program using funds paid out by the EU to help the Italian economy rebound from COVID-19. Analysts have suggested that buying into FVL may overlap with work by Italy's Leonardo to build the AW249, a replacement for Italy's AW129 Mangusta attack helicopter. This year, the plan to complete a €2.7 billion purchase of 48 of the AW249 helicopters receives funding in the budget. “There is cash for the successor to the AW129 but seeing the mention of the FVL confirms Italy is also interested in that initiative,” said Crippa. https://www.defensenews.com/global/europe/2020/10/28/italy-defense-budget-rebounds-despite-covid-crisis/

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