October 29, 2019 | International, Aerospace

Pentagon and Lockheed Martin reach agreement reducing F-35A cost by 12.8 per cent

The F-35 Joint Program Office and Lockheed Martin finalized a US$34 billion agreement for the production and delivery of 478 F-35s at the lowest aircraft price during the history of the program. This contract includes all U.S., international partners and foreign military sales aircraft in Lots 12, 13 and 14.

In the agreement, the F-35 Enterprise meets and exceeds its long-stated cost reduction targets for each variant – and the F-35A unit price, including aircraft and engine, is now below US$80 million in both Lot 13 and Lot 14, the F-35A unit cost represents an estimated overall 12.8 per cent reduction from Lot 11 costs for the conventional landing variant, and an average of 12.7 per cent savings across all three variants from Lot 11 to 14.

“Driving down cost is critical to the success of this program. I am excited that the F-35 Joint Program Office and Lockheed Martin have agreed on this landmark three-lot deal. This agreement achieves an average 12.7 per cent cost reduction across all three variants and gets us below US$80 Million for a USAF F-35A by Lot 13 — one lot earlier than planned,” said Air Force LGen Eric Fick, F-35 program executive officer. “This US$34 billion agreement is a truly historic milestone for the F-35 Enterprise.”

The agreement includes 291 aircraft for the U.S. Services, 127 for F-35 international partners, and 60 for F-35 foreign military sales customers. Price details include:

F-35A — Lot 12: US$82.4M; Lot 13: US$79.2M; Lot 14: US$77.9M; % reduction from Lot 11: 12.8 per cent
F-35B — Lot 12: US$108M; Lot 13: US$104.8M; Lot 14: US$101.3M; % reduction from Lot 11: 12.3 per cent
F-35C — Lot 12: US$103.1M; Lot 13: US$98.1M; Lot 14: US$94.4M; % reduction from Lot 11: 13.2 per cent

“With smart acquisition strategies, strong government-industry partnership and a relentless focus on quality and cost reduction, the F-35 Enterprise has successfully reduced procurement costs of the fifth generation F-35 to equal or less than fourth generation legacy aircraft,” said Greg Ulmer, Lockheed Martin, F-35 program vice-president and general manager. “With the F-35A unit cost now below US$80 million in Lot 13, we were able to exceed our long-standing cost reduction commitment one year earlier than planned.”

The sub US$80 million unit recurring flyaway cost for an F-35 represents an integrated acquisition price for the fifth generation weapon system. With embedded sensors and targeting pods, this F-35 unit price includes items that add additional procurement and sustainment costs to legacy fourth generation aircraft.

Program Progress

With more than 450 aircraft operating from 19 bases around the globe, the F-35 is playing a critical role in today's global security environment. More than 910 pilots and 8,350 maintainers have been trained, and the F-35 fleet has surpassed more than 220,000 cumulative flight hours. Eight nations have F-35s operating from a base on their home soil and seven services have declared initial operating capability.

In addition to strengthening global security and partnerships, the F-35 provides economic stability to the U.S. and international partners by creating jobs, commerce and security, and contributing to the global trade balance. The F-35 is built by thousands of men and women in America and around the world. With more than 1,400 suppliers in 46 states and Puerto Rico, the F-35 Program supports more than 220,000 direct and indirect jobs in the U.S. alone. The program also includes more than 100 international suppliers, creating or sustaining thousands of jobs.

https://www.skiesmag.com/press-releases/pentagon-and-lockheed-martin-reach-agreement-reducing-f-35a-cost-by-12-8-per-cent

On the same subject

July 23, 2018 | International, Land

U.S. GOVERNMENT AWARDS LOCKHEED MARTIN CONTRACT TO BEGIN PRODUCTION OF MULTI-MISSION SURFACE COMBATANT FOR KINGDOM OF SAUDI ARABIA
WASHINGTON, July 20, 2018 /PRNewswire/ -- The U.S. government awarded Lockheed Martin (NYSE: LMT) an Undefinitized Contract Action (UCA) award for the production of the Multi-Mission Surface Combatant for the Kingdom of Saudi Arabia. Lockheed Martin is being awarded a contract totaling $450 million to begin the detailed design and planning for construction of four Multi-Mission Surface Combatants (MMSC) that will be built at Fincantieri Marinette Marine shipyard in Marinette, Wisconsin. The Kingdom of Saudi Arabia (KSA) will acquire four Multi-Mission Surface Combatants as part of a larger agreement between the United Statesand KSA to enhance global security and stimulate economic progress in the two regions. "We are pleased the Kingdom of Saudi Arabia has selected the Multi-Mission Surface Combatant to support its Royal Saudi Naval Forces fleet," said Joe DePietro, vice president, Lockheed Martin Small Combatants and Ship Systems. "The MMSC provides the Royal Saudi Naval Forces a lethal and highly maneuverable multi-mission surface combatant, which features the flexibility of the Freedom-variant Littoral Combat Ship steel mono-hull with expanded capabilities that include an integrated Mk41 Vertical Launch System, an increased range of 5,000 nautical miles and speeds in excess of 30 knots, making it capable of littoral and open ocean operation, and able to confront modern maritime and economic security threats." MMSC utilizes the COMBATSS-21 Combat Management System, built from the Aegis Combat System Common Source Library, enabling anti-air and anti-surface capabilities in a small surface combatant platform. With proven combat management system lineage, Lockheed Martin's MMSC has the interoperability necessary for today's joint and allied naval force maneuvers. In March, Lockheed Martin was awarded $481 million for long lead material for MMSC. The contract award of the MMSC is a significant milestone in the relationship between Lockheed Martin and the Kingdom of Saudi Arabia. "Lockheed Martin values our 50-year partnership with the Kingdom of Saudi Arabia and is committed to helping fulfill the Kingdom's long-term vision," said Richard H. (Rick) Edwards, executive vice president of Lockheed Martin International. "Through investment in IT infrastructure, training, tooling, equipment and enhanced collaboration with KSA industry, together we will increase the capacity of the Kingdom's economy while creating sustainable jobs for a brighter future." Over the past 10 years, the Littoral Combat Ship (LCS) Freedom-variant industry team has invested more than $120 million to modernize the Marinette shipyard, hire more than 1,000 people and train a new workforce. "This prestigious award proves the farsightedness of our decision to enter the U.S. market," said Giuseppe Bono, CEO of Fincantieri. "Since then, over the past 10 years we have become a reference builder not only for the U.S. Navy, but also for several foreign navies, while contributing to the development of the industrial base and of the economic fabric in the Midwest." The Lockheed Martin-led team is comprised of shipbuilder Fincantieri Marinette Marine, naval architect Gibbs & Cox, and more than 800 suppliers in 42 states. The LCS is the Navy's most affordable surface combatant shipbuilding program. "Fincantieri Marinette Marine has been in this community for more than 75 years and has produced over 1,500 vessels," said Jan Allman, President and CEO of Fincantieri Marinette Marine. "We are proud to have one of the most technologically advanced shipyards, employing nearly 2,000 of the best shipbuilders, technicians and engineers. On behalf of Fincantieri Marinette Marine and our suppliers in Wisconsin and throughout the Midwest who will support this program, we are pleased to partner with Lockheed Martin to construct the Multi-Mission Surface Combatant for the Kingdom of Saudi Arabia." For additional information, visit our website: www.lockheedmartin.com/mmsc About Lockheed Martin Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 100,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. This year the company received three Edison Awards for ground-breaking innovations in autonomy, satellite technology and directed energy. About Fincantieri Marinette Marine Fincantieri is the leading western shipbuilder with a rich history dating back more than 230 years, and a track record of building more than 7,000 ships. Fincantieri Marine Group (FMG) is the American subsidiary of Fincantieri, and operates three Great Lakes Shipyards: Fincantieri Marinette Marine, Fincantieri Bay Shipbuilding, and Fincantieri ACE Marine. Fincantieri Marine Group's more than 2,100 steelworkers, craftsman, engineers and technicians in the United States specialize in the design, construction ,and maintenance of merchant ships and government vessels, including for the United States Navy and Coast Guard. About Gibbs & Cox Gibbs & Cox, the nation's leading independent maritime solutions firm specializing in naval architecture, marine engineering and design, is headquartered in Arlington, Virginia. The company, founded in 1929, has provided designs for nearly 80 percent of the current U.S. Navy surface combatant fleet; approaching 7,000 naval and commercial ships have been built to Gibbs & Cox designs. https://news.lockheedmartin.com/2018-07-20-U-S-Government-Awards-Lockheed-Martin-Contract-to-Begin-Production-of-Multi-Mission-Surface-Combatant-for-Kingdom-of-Saudi-Arabia
November 16, 2017 | International, Aerospace, C4ISR, Security

Cyber consequences: Attacks are hitting the C-suite
Ask Charles Bouchard what keeps him awake at night and the chief executive officer of Lockheed Martin Canada won't hesitate: “Our ability to protect our cyber systems.” At a time when access to intellectual property (IP) is raising debate among aerospace OEMs, suppliers, in-service support and MRO (maintenance, repair and overhaul) companies, and governments and militaries, protecting data is a hot topic. Lockheed Martin has seen enough of its IP stolen in recent years to take the problem seriously. But Bouchard believes many industry executives don't truly understand the challenge or the cost. “It's one thing to say, we want the IP. The next question is, can you defend it? Can you protect it? That is a problem today,” he told Skies. “Subcontractors . . . need to protect their data because they are connecting to our systems, especially if IP will be passed to them. How are we going to do that? We have gone beyond putting a guard at the front gate and a lock on the door. [And] for some, it's a significant investment.” Cyber defence is a national imperative, said retired Major-General Robert Wheeler, a 32-year veteran of the United States Air Force and a senior advisor to Avascent Global Advisors. Whether the threat comes from nations or non-state actors such as terrorist or criminal organizations, cyber experts are seeing an increase in frequency and capability “in this particular type of warfare.” “They are going after companies that are not prepared to deal with it, to take their IP and create havoc...,” the former deputy chief information officer in the Office of the Secretary of Defense told executives at the Canadian Aerospace Summit in Ottawa Nov. 7. Modern aircraft, with their vast supply chains and increasingly networked systems, present an attractive “avenue for bad guys to get in.” In a presentation that highlighted recent attacks in Canada, the U.S. and elsewhere, Wheeler showed how the relentless pursuit of corporate and government data has jeopardized military, commercial and critical infrastructure systems and programs. The 2011 attack on Defence Research and Development Canada, for example, was not only a costly systems problem to fix, it also raised questions about what government, industry and research data was exfiltrated. Likewise, the 2015 hack of the U.S. Office of Personnel Management was alarming because the benign-sounding agency houses the security clearances, including digital photo and biometric identification, for government, intelligence and military personnel. “Data is the commodity of the 21st century,” said Wheeler. While the sheer volume of new data might be a sign that more intellectual property is being created and the economy is growing, corporate breaches are keeping pace, and “the cost of each breach is accelerating” in terms of dollars and lost IP. Cyber attacks are also starting to impact the C-suite, he noted. The 2013 breach of Target's payment card system cost chief executive officer Gregg Steinhafel his job, and executives with credit reporting agency Equifax have been “publicly flogged” in the wake of the hack of millions of client records in October. ere may be greater consequences for companies that don't do due diligence, Wheeler suggested, pointing to changes taking shape in the legal regime following the Target attack. While greater investment in cyber defence is important, “this is not a technology issue,” he said. “This is a leadership issue” that requires a change in organizational culture and executives who understand the challenge and can “walk the talk.” It also requires more employee training, not only in best cyber hygiene practices, but also in how to use networking and cyber tools to be more resilient, agile and quick to respond. The payoff is a more effective, efficient and competitive company. “[So] many solutions to problems of this world today are in the data,” he said. “If you do this correctly . . . there is an opportunity to be more competitive, more collaborative, to come up with faster ideas in an environment and age when we have to come up with faster ideas.” https://www.skiesmag.com/news/cyber-consequences-attacks-hitting-c-suite/
November 7, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

Coopérations dans l'armement : la France peut-elle vraiment faire confiance à l'Allemagne ? (1/3)
Par Michel Cabirol La France et l'Allemagne ont à l'évidence des enjeux et des objectifs différents. La coopération franco-allemande est-elle assise sur des bases saines ? Pas sûr. La France peut-elle vraiment faire confiance à l'Allemagne en matière de politique de défense et d'armement? Pas sûr si l'on en croit le député LREM du Finistère, Jean-Charles Larsonneur, qui jette un pavé dans la mare avec son rapport sur le programme 146 (Equipement des forces et dissuasion) : "L'approfondissement, sans grande publicité et, pour ainsi dire, à bas bruit, du concept de nation-cadre de l'OTAN, consiste à fédérer autour de l'Allemagne les capacités de 17 « petits » pays, ce qui risque de réduire l'intérêt des Allemands pour nos coopérations bilatérales", a-t-il expliqué le 24 octobre à l'Assemblée nationale. L'Allemagne se place dans une volonté de leadership en Europe dans le domaine de la défense, qu'elle a très clairement exprimé dans son Livre Blanc de 2016 et dans sa stratégie dans le domaine des technologies clés. D'ailleurs, l'un des plus influents think tank d'Allemagne, la Stiftung für Wissenschaft und Politik (SWP), synthétise parfaitement la stratégie allemande. Il préconisait en août 2017 que Berlin prenne le leadership militaire de l'Union européenne, et de devenir le pilier européen de l'OTAN en raison du futur désengagement américain. "La Bundeswehr pourrait devenir une épine dorsale de la sécurité européenne à long terme, affirmait la SWP. (...) Cela exige de la volonté du futur gouvernement fédéral d'accepter un leadership politique et militaire dans l'alliance". Un avantage puissant pour l'industrie allemande L'Allemagne a effectivement su se saisir du concept de nation-cadre ("Framework Nation Concept"- FNC) élaboré par l'OTAN à son initiative à partir de 2012. De fait, l'Allemagne, qui a mis en œuvre ce concept, s'est entourée, en tant que nation-cadre, de 19 États membres pour mettre en œuvre des projets de coopération très approfondis, tendant à une véritable intégration pour certains d'entre eux (Pays-Bas notamment). Et pour de nombreux observateurs, ce concept va se révéler être un rouleau compresseur en faveur des intérêts industriels germaniques. C'est un "instrument stratégique qui pourrait servir puissamment les intérêts de l'industrie allemande", a confirmée Jean-Charles Larsonneur. Pourquoi ? Selon Antoine Bouvier, cité dans le rapport du député, l'interpénétration des enjeux capacitaires et opérationnels est profonde. Ainsi, les États partenaires de l'Allemagne ont souscrit l'engagement de porter au standard le plus élevé leurs capacités des chars de combat, ce qui constitue une "formidable opportunité pour KMW ". Cette opportunité est par nature d'autant plus grande que l'intégration des capacités militaires concernées est poussée. Ainsi, l'armée de terre néerlandaise ne pourrait désormais plus être déployée sans la Bundeswehr, tant leur intégration capacitaire est profonde. L'Allemagne, dans ce schéma, tient un rôle d'intégrateur des capacités européennes. Cette ambition s'appuie sur des ressources budgétaires à la hausse : augmentation de 34,3 milliards d'euros en 2016 à 42,9 milliards en 2019 (soit 1,31% du PIB). "Le concept de nation-cadre se constitue de fait comme le pilier européen de l'Alliance ‒ aux yeux d'Américains, mieux vaut voir l'Europe de la défense se constituer dans un cadre de l'OTAN, bien connu, plutôt que dans des constructions européennes moins maîtrisées par eux", a expliqué Jean-Charles Larsonneur dans son rapport. Le SCAF en danger? Un accord politique a été trouvé au plus haut niveau le 13 juillet 2017, formalisé par des lettres d'intention au printemps 2018. Il est convenu que la France aura un rôle prééminent dans la conduite du programme SCAF. Symétriquement, il est entendu que l'Allemagne en aura un dans la conduite du projet de char du futur tout comme elle a obtenu le leadership sur le futur drone MALE européen. Selon Jean-Charles Larsonneur, les industriels français et allemands ne disposent toujours pas d'un cadre réglementaire, ne serait-ce que pour échanger des informations. "Il ressort de mes travaux que la DGA attend des réponses de son équivalent allemand", a-t-il révélé. "Il est donc urgent de poser des jalons aussi irréversibles que possible dans la coopération franco-allemande, tant que le contexte politique le permet", a-t-il affirmé. Jean-Charles Larsonneur est inquiet sur la coopération franco-allemande. "La coopération franco-allemande présente en ce moment quelques signes de flottement", a-t-il estimé à l'Assemblée nationale. Il a cité en exemple la décision des Allemands de décliner la proposition française de développer en commun un missile européen pour le nouveau standard du Tigre, au profit d'un missile israélien, le Spike, comme l'avait révélé La Tribune. Mais selon Antoine Bouvier, le nouveau Spike LR2 n'est qu'au début de son développement et comporte donc des risques technologiques. "Le choix des Allemands pour une joint venture entre Rafael, fabricant israélien du Spike, et RheinMettall ‒ dont le rôle dans ce programme ne paraît d'ailleurs pas être dominant ‒ ne s'explique donc pas principalement par des considérations techniques", a précisé le rapport du député du Finistère. Le concept de nation-cadre permet également à l'Allemagne d'avancer discrètement ses pions dans le domaine des sous-marins. Après avoir fait céder la Norvège (membre du FNC), Berlin tente désormais de séduire la Pologne et les Pays-Bas en vantant un cluster européen sous-marin sous tutelle allemande. Ce qui marginaliserait clairement la France en Europe. En février 2017, la Norvège a commandé quatre U-212 et doit développer avec Berlin un partenariat à vocation mondiale dans le domaine des missiles mer-mer et des systèmes de traitement de l'information. La décision d'Oslo d'interrompre l'appel d'offres et de choisir une évolution du sous-marin en service dans la Marine allemande dans le cadre d'une coopération opérationnelle et industrielle renforcée, risque de faire t'ches d'huile en Europe... La France est en danger. https://www.latribune.fr/entreprises-finance/industrie/aeronautique-defense/cooperations-dans-l-armement-la-france-peut-elle-vraiment-faire-confiance-a-l-allemagne-1-3-795987.html

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