Back to news

January 25, 2021 | International, Aerospace

Next F-35 Contracts Under Negotiation, Deal Expected by Late September

Jan. 22, 2021 | By John A. Tirpak

The F-35 Joint Program Office, Lockheed Martin, and Pratt & Whitney are negotiating prices for the 15th through 17th lots of Lightning II fighters and engines, aiming for a deal by the end of September.

The contracting strategy is to negotiate a “base year” contract for Lot 15, with “two single-year options (Lots 16 and 17),” a JPO spokeswoman said. While the air vehicles are under negotiation, the “propulsion Lot 15-17 proposal is currently in technical evaluation,” the spokeswoman said. Although Lockheed quotes prices publicly for F-35s with engines included, the government negotiates with the engine maker separately. The Lightning II is powered by Pratt's F135 turbofan.

The strategy likely buys time for the F-35 to finally exit engineering and manufacturing development and be declared ready for full-rate production, a milestone postponed last month for the third time by former Pentagon acquisition and sustainment chief Ellen Lord.

The Lot 15-17 contracts will also mark the first major deals for the F135 engine conducted with Pratt under the ownership of Raytheon Technologies, which formally took over the engine maker in April 2020. Pratt was previously owned by United Technologies.

The program office expects to conclude both the air vehicle and propulsion talks within fiscal 2021, the spokeswoman said. Lot 15 air vehicles “are planned to be fully funded and awarded in FY'21,” but the Lot 16 and 17 options would be exercised in fiscal year 2022 and 2023, respectively, “when funding becomes available.”

The Lots 15-17 contracts were originally expected to include a multi-year “block buy” agreement including the U.S. However, by law, the U.S. cannot enter into a multiyear procurement arrangement for a weapon system until it has passed Milestone C, or full-rate production. The F-35 most recently was supposed to clear Milestone C in March, but Lord postponed that declaration until further notice, due to ongoing challenges integrating the F-35 with the Pentagon's Joint Simulation Environment—a wargaming system that helps Pentagon leaders decide on optimum force sizes for various weapon platforms. Lord's move leaves it up to the Biden administration to declare whether and when the F-35 is ready for full-rate production.

When the Lot 12-14 contract was announced in October 2019, Lord said the F-35 had completed 90 percent of the tasks necessary to pass Milestone C.

U.S. partners in the F-35 program are already participating in a “block buy” arrangement with Lockheed Martin.

The $34 billion October 2019 contract, which covered Lots 12-14, achieved Lockheed and the JPO's longstanding goal of getting the unit cost of the F-35A below $80 million a copy. That contract, the largest yet for the fighter, included 478 aircraft; 291 for U.S. military services and 127 for foreign users. It also marked a 12.8 percent drop in the price of the Air Force version of the Lightning II over Lot 11. Engine costs had only declined 3.5 percent versus the previous lot.

Lots 15-17 will likely involve a slightly larger number of aircraft.

Industry officials said they expect smaller cost reductions in the F-35 from now on, as the production line is nearly at capacity and peak efficiency. The 2019 contract was the “big bang” deal, said one, in which Lockheed “pushed it” to get the unit cost below $80 million. At that price, the fifth-generation F-35 costs less than fourth-generation types like the F-15EX, but its operating cost remains significantly higher.

Lockheed missed its delivery quota of F-35s in 2020 by about 20 airplanes, due to delays incurred by the COVID-19 pandemic. Michele Evans, former Lockheed aeronautics vice president, said in the fall the company expects to gradually make up those missed deliveries by around 2023, noting it did not want to disrupt the production enterprise for a brief surge to get back to par.

https://www.airforcemag.com/next-f-35-contracts-under-negotiation-deal-expected-by-late-september

On the same subject

  • SOCOM Multi-Mission Plane Competition Heats Up

    June 3, 2020 | International, Aerospace

    SOCOM Multi-Mission Plane Competition Heats Up

    SOCOM has budgeted $106 million in 2021 to buy the first five of up to 75 Armed Overwatch aircraft to perform close air support for its troops on the ground, light attack and ISR missions. The planes would replace Air Force Special Operations Command current fleet of U-28 Draco aircraft. By THERESA HITCHENSon June 02, 2020 at 8:01 AM WASHINGTON: Given the fact that the global market for trainers is flat at best, and practically non-existent for light attack aircraft, the competition for Special Operations Command's upcoming Armed Overwatch buy is likely to be fierce. “75 planes is a lot in this market,” Richard Aboulafia, aviation analyst at Teal Group, told Breaking D. SOCOM has budgeted $106 million in 2021 to buy the first five of up to 75 Armed Overwatch aircraft to perform close air support for its troops on the ground, light attack and intelligence, surveillance and reconnaissance (ISR) missions. The planes would replace Air Force Special Operations Command's current fleet of U-28 Draco aircraft. Indeed, Teal Group's January 2020 market analysis on trainers (not including supersonic aircraft) and light attack aircraft finds the total market worth only about $2 billion, compared to up to $30 billion for fighter jets. “Having SOCOM do this with 75 planes to train with less capable allied forces almost makes sense, compared with the totally absurd idea of the Air Force buying hundreds as part of their force structure,” Aboulafia said. He was referencing the Air Force's on-again, off-again romance with the concept of buying up to 300 so-called Light Attack Aircraft to use for training, for close air support by Air Force Special Operations Command, and as strike aircraft for US allies involved in insurgencies such as Afghanistan and Lebanon. After almost a decade of dithering, the service finally in February made a final determination to buy only two each of the Textron/Beechcraft AT-6 Wolverine and the Sierra Nevada-Embraer A-29 Tucanos for continued experimentation. SOCOM officials have stressed that the commands requirements are slightly different than those of the Air Force, focused more on mission capabilities than aircraft design. “Armed Overwatch addresses our requirement for a close air support and intelligence, surveillance and reconnaissance capability that can operate in austere, short take-off and landing environments with minimal manning, infrastructure and sustainment,” Lt. Cmdr. Timothy Hawkins, a SOCOM spokesperson, told Breaking D. And while at least one vendor expressed concerns about speaking with the press due to guidance issued to industry by SOCOM, Hawkins said the guidance used standard language asking vendors not to speak about SOCOM's articulated needs with the goal of protecting ‘controlled unclassified' information. The program is slated to hold a prototype demonstration in November or December — a date that may slip, however, due to the COVID-19 pandemic. At least four aircraft manufacturing teams have confirmed participation in the contest: Sierra Nevada-Embraer; Textron Aviation Defense; Air Tractor; and Leidos. In an May 18 interview with Breaking D, Textron Aviation Defense's Vice President of Defense Strategy and Sales Brett Pierson stressed the fact that the Beechcraft AT-6E has already shown that it can perform the multiple missions envisioned by SOCOM by virtue of its participation in the Air Force's Light Attack Experiment over the last several years. “It already has the capability to do the kind of missions that SOCOM talks about,” he said. The AT-6 has proven its chops in austere environments, Pierson said, both in landing on unprepared runways, and in the ability to rapidly refuel and re-arm. “During Light Attack Experiment, one of the things we demonstrated was the ability to have pilots refuel the airplane, re-arm rockets, do a quick turnaround and take back off again,” he said. In addition, Pierson pointed out, Textron Aviation Defense has customers all over the world , giving it an established supply chain, as well as manufacturing capability. According to a company fact sheet provided to Breaking D, the AT-6 has “85 percent parts commonality with the T-6” trainer, which “yields low risk, low cost sustainment, world-wide logistics, and low-footprint maintenance.” On the other hand, newcomer to the competition Leidos argues that its new Bronco II has the advantage of being designed specifically with the SOCOM mission in mind. Leidos is partnering on Bronco II with the US arm of South African defense conglomerate Paramount Group (which manufactures the Mwari light reconnaissance aircraft), and aftermarket service provider Vertex Aerospace, based in Mississippi. And the fact that the Bronco II is a prototype means its specifications can be altered more easily to fit exactly what the customer might desire, Richard Jackson, Leidos VP for Business Development & Strategy Airborne Solutions, Defense, told Breaking D in a May 19 interview. “It allows SOCOM, from our perspective, to have greater flexibility in influencing the future of how the aircraft evolves,” he said. The aircraft design is optimized to meet SOCOM's multi-mission profile, Jackson stressed, using modern, modular design approaches and open standards that ensure future subsystem upgrades are easily accomplished. It also has an “interchangeable conformal mission bay” that allows payloads to be rapidly swapped out by a couple of operators “in hours, not days.” “Multi-mission is key word here,” he said. “It can do the surveillance and combat support and combat attack role simultaneously. That is something that SOCOM has touted and is not easily done.” The Bronco II is built specifically to operate in austere environments, he said. For example, it can be rapidly broken down for transport — with one deconstructed aircraft fitting on a C-130 and two fitting in a C-17. “It was designed from a clean sheet,” Jackson said, “purpose built for austere environments. That's something that no other company can say.” Neither Sierra Nevada-Embraer or Air Tractor were available for comment. The A-29 turboprop not only has been involved in the Air Force's Light Attack Experiment, but also used in combat by Afghanistan's air force in the fight against the Taliban. And on April 17, the Sierra Nevada/Embraer team announced that it has successfully flight tested the first of 12 A-29s being built for the Nigerian air force. Air Tractor had offered, with partner L3, the AT-802L Longsword back in 2017 during Phase 1 of the Light Attack Aircraft experiment, but lost out to the AT-6 and A-29 — with Air Force officials citing lack of an ejection seat as a factor. (Air Tractor last November filed a bid protest with the Government Accountability Office that was subsequently dismissed.) Air Tractor's website now touts the multi-mission AT-802U, which the firm says can support ISR, signals intelligence, border/maritime patrol and remote supply/transport missions. https://breakingdefense.com/2020/06/socom-multi-mission-plane-competition-heats-up

  • Contract Awards by US Department of Defense - January 29, 2020

    January 30, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - January 29, 2020

    NAVY Geocent LLC, Metairie, Louisiana (N66001-20-D-3417); M.C. Dean Inc., Tysons, Virginia (N66001-20-D-3418); McKean Defense Group LLC, Philadelphia, Pennsylvania (N66001-20-D-3419); Parsons Government Services Inc., Pasadena, California (N66001-20-D-3420); Science Applications International Corp., Reston, Virginia (N66001-20-D-3421); Serco Inc., Herndon, Virginia (N66001-20-D-3422); Systems Technology Forum Ltd., Fredericksburg, Virginia (N66001-20-D-3423); Valkyrie Enterprises Inc., Virginia Beach, Virginia (N66001-20-D-3424); and VT Milcom Inc., Virginia Beach, Virginia (N66001-20-D-3425), are each awarded a $56,339,692 indefinite-delivery/indefinite-quantity, multiple-award contract with cost-plus-fixed-fee, firm-fixed-price and cost (no fee) pricing. Support includes project management, administration, drafting, technical integration, testing, maintenance, engineering, logistics, facilities and security for software and hardware of new and existing command, control, communications, computers, intelligence, surveillance and reconnaissance systems and networks. All awardees will have the opportunity to compete for task orders during the ordering period. This two-year contract includes two three-year option periods, which, if exercised, would bring the overall potential value of this contract to an estimated $249,033,405. Work will be performed primarily in the Indo-Asia-Pacific Region and Navy Region Southwest including Hawaii, Guam, Japan, California, Nevada, Washington state, Oklahoma, South Korea, Singapore, Philippines and Australia; and outside this region in Bahrain, Djibouti and Italy. Work will be performed outside the continental U.S. (50%); and inside the continental U.S. (50%) on a full-time basis. The period of performance of the base award is from Jan. 29, 2020, through Jan. 28, 2022. If all options were exercised, the period of performance would extend through Jan. 28, 2028. No funds will be obligated at the time of award. Funds will be obligated as task orders are issued using operations and maintenance (Navy); and other funding, which may include working capital funds (DoD); Department of Homeland Security funds; and research, development, test and evaluation (Navy) funds. This contract was competitively procured via a request for proposal (N66001-19-R-0001) which was published on the Federal Business Opportunities website and the Naval Information Warfare Command e-Commerce Central website. Eighteen offers were received and nine were selected for award. The Naval Information Warfare Center, Pacific, San Diego, California, is the contracting activity. Northrup Grumman Systems Corp., Linthicum Heights, Maryland, is awarded a $15,752,580 cost-plus-fixed-fee modification to exercise options to previously-awarded contract N00024-15-C-5319 for level of effort engineering services and associated travel to provide continuous support of two AN/SLQ-32(V)Y Surface Electronic Warfare Improvement Program (SEWIP) Block 3 System low rate initial production units. This option exercise is for the continued level of effort engineering services in support of SEWIP Block 3 low-rate initial-production units. SEWIP is an evolutionary acquisition and incremental development program to upgrade the existing AN/SLQ-32(V) electronic warfare system. SEWIP Block 3 will provide select Navy surface ships a scalable electronic warfare enterprise suite with improved electronic attack capabilities. Work will be performed in Linthicum, Maryland, and is expected to be completed by December 2020. Fiscal 2018 other procurement (Navy) funding in the amount of $60,000 will be obligated at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington Navy Yard, Washington, District of Columbia, is the contracting activity. Rockwell Collins Inc., Cedar Rapids, Iowa, is awarded an $11,301,660 fixed-price, indefinite-delivery/indefinite-quantity contract. This contract procures Joint Precision Approach and Landing Systems Airborne Radio Communication ARC-210 Generation 5 radio units for the Navy. Work will be performed in Cedar Rapids, Iowa, and is expected to be completed in March 2021. Fiscal 2020 shipbuilding and conversion (Navy) funds for $403,110; and other procurement (Navy) funds for $3,627,990 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to Federal Acquisition Regulation 6.302-1. The Naval Air Warfare Center, Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-20-D-0006). BAE Systems Technology Solutions & Services, Rockville, Maryland, is awarded a $10,536,004 modification (P00002) to a previously-awarded cost-plus-fixed-fee contract (N00421-20-C-0003). This modification exercises an option to provide engineering and technical services for integrated communications and information systems radio communications for Navy ships, in support of the Naval Air Warfare Center, Webster Outlying Field, to support the integrated communications and information systems radio communications. Work will be performed in St. Inigoes, Maryland (60%); California, Maryland (30%); Bath, Maine (5%); and Pascagoula, Mississippi (5%), and is expected to be completed in July 2025. Fiscal 2020 shipbuilding and conversion (Navy) funds for $4,000,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. ARMY Continental Heavy Civil Corp., Miami, Florida, was awarded a $23,778,240 firm-fixed-price contract for the NASA Wallops Beach Renourishment Project in Accomack County, Virginia. Bids were solicited via the internet with five received. Work will be performed in Wallops Island, Virginia, with an estimated completion date of March 12, 2021. Fiscal 2019 civil construction, Corps of Engineers funds in the amount of $23,778,240 were obligated at the time of the award. U.S. Army Corps of Engineers, Norfolk, Virginia, is the contracting activity (W91236-20-C-0002). AECOM Management Services Inc., Germantown, Maryland, was awarded a $17,000,000 modification (000260) to contract W52P1J-12-G-0028 for Army Prepositioned Stock (APS-2) logistics support services in support of maintenance, supply and transportation at Mannheim and Dulmen, Germany. Work will be performed in Mannheim and Dulmen, Germany, with an estimated completion date of Nov. 20, 2020. Fiscal 2020 operations and maintenance, Army funds in the amount of $17,000,000 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. Vision Point Systems Inc.,* Fairfax, Virginia, was awarded a $13,500,000 firm-fixed-price contract to provide corrosion engineering and logistics technical, analytical, programmatic, research and development, technical assistance, testing, training, and technical writing support for the U.S. Army Combat Capabilities Development Command (CCDC) Ground Vehicle Systems Center (GVCS) and Tank-automotive and Armaments Command (TACOM) Life Cycle Management Center (LCMC). Bids were solicited via the internet with four received. Work locations and funding will be determined with each order, with an estimated completion date of Jan. 28, 2025. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity (W56HZV-20-D-0012). Dawn/Higley JV LLC,* Warren, Ohio, was awarded an $11,458,223 firm-fixed-price contract to repair and renovate interior and exterior of an aircraft maintenance hangar. Bids were solicited via the internet with five received. Work will be performed in Mansfield, Ohio, with an estimated completion date of Aug. 31, 2021. Fiscal 2020 Air Guard sustainment, repair, maintenance in the amount of $11,458,223 were obligated at the time of the award. U.S. Property and Fiscal Office for Ohio 179th Mission Support Contracting, Mansfield, Ohio, is the contracting activity (W50S8R-20-C-0002). AIR FORCE Technica Corp., Sterling, Virginia, has been awarded a $13,591,345 cost-plus-fixed-fee modification to exercise the first option period, Feb. 15, 2020, through Feb. 14, 2021. The contract provides weapon system engineering and maintenance services to include incremental software version development and installation, security patch installations, preventative maintenance, trouble shooting and responsive Tier 1, 2 and 3 support for the Cyberspace Vulnerability Assessment/Hunter (CVA/H) weapon system. Work will be performed in Sterling, Virginia, and is expected to be complete by Aug. 14, 2025. This award is the result of a competitive acquisition. Offerors were solicited under the Network-Centric Solutions (NETCENTS) Network Operations and Infrastructure Small Business contract holders and seven offers were received. Fiscal 2020 research, development, test and evaluation; operations and maintenance; and procurement funds in the amount of $13,591,345 are being obligated at the time of modification to exercise the first option period. The Air Force Life Cycle Management Center, Cryptologic and Cyber Systems Division, Joint-Base San Antonio-Lackland, San Antonio, Texas, is the contracting activity (FA8732-14-D-0015, task order FA8307-19-F-0098). Starwin Industries LLC, Dayton, Ohio, has been awarded a $9,554,000 firm-fixed price indefinite-delivery/indefinite-quantity contract for F-16 Bugeye radomes. This contract provides for the supply of both left and right Bugeye radomes for the F-16 aircraft. Work will be performed in Dayton, Ohio, and is expected to be complete by Jan. 28, 2026. This award is the result of a competitive acquisition, two solicitations mailed and two offers received. Fiscal 2019 research and development funds (not multiyear) in the amount of $35,872 are being obligated at the time of award. The Air Force Life Cycle Management Center, F-16 Division, Hill Air Force Base, Utah, is the contracting activity (FA8232-20-D-0006). DEFENSE LOGISTICS AGENCY Lions Services Inc.,** Charlotte, North Carolina, has been awarded a maximum $10,468,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for advanced combat helmet chinstraps. This is a one-year base contract with two one-year options periods. Location of performance is North Carolina, with a Jan. 28, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-B082). * Small business ** Mandatory source https://www.defense.gov/Newsroom/Contracts/Contract/Article/2069174/source/GovDelivery/

  • Rheinmetall, Leonardo JV sows seed for EU defence consolidation
All news