April 21, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Pentagon Pumps $3B Into Industry As COVID-19 Delays Loom

PENTAGON: The Pentagon's acquisition chief today said she expects major defense programs to be delayed by around three months due to COVID-19 closures and disruptions, while DoD rushes to pump $3 billion into the defense industry to bolster programs at greatest risk.

Speaking to reporters here this morning, Lord said she expects to have to ask the White House and Congress for “billions” more to reimburse contractors affected by work delays and broken supply chains. “We believe it will cost us something,” she said, declining to get any more specific than “billions” of dollars.

The months-long delays to programs will likely be spread throughout the defense industry as small parts suppliers shut down operations for days or weeks at a time. “We're looking at schedule delays and inefficiencies and so forth: this isn't about a particular program.” Lord singled out “a slowdown in the shipyards, to an extent. Aviation is actually the most highly impacted sector we have right now.”

It's unclear what programs are at highest risk, but the Navy has been bullish on speeding up its new frigate program to award contracts some time this summer. If work slowdowns continue, that could be pushed further down the road. The Army and Navy have also been moving ahead on their nascent hypersonic weapons program, with a series of critical tests planned this year.

Lord pointedly suggested that large defense companies need to start pushing more money into their supplier base to ensure small parts suppliers don't go out of business, further impacting new programs and ongoing maintenance efforts. She did praise Lockheed and Boeing for increasing cash flow to lower-tier suppliers, then not-so-subtly says, she is “hoping for similar public announcements from other major primes.”

Last month, Lockheed said it would advance more than $100 million to suppliers hurt by the slowdown, and this week Boeing said it was reopening the Philadelphia-area facility where it makes the Chinook, the V-22 Osprey and other helicopters.

The Pentagon is starting to award higher progress payment rates this week, pumping $3 billion dollars in increased cash flow to industry. “We try to anticipate the problems and work with the companies to keep going to the greatest degree possible,” Lord said.

As part of that effort, DoD's first priority is the modernization process of the nuclear triad, she said: “we look at the Missile Defense Agency, we look at the critical capabilities. We're looking where the greatest pain points are.”

While she singled out Lockheed and Boeing, shipbuilder Huntington Ingalls is making a push to speed up contracts and get money into the hands of sub-tier suppliers early, in order to ensure companies way down the supply base food chain can continue chugging along.

In a recent interview, company representatives told me they've reached out to over 2,000 suppliers in 48 of the 50 US states. “We need their products today, but we also need them in 90 days, so we want to help them brave the storm,” said Lucas Hicks, vice president of new construction aircraft carrier programs. “We've actually changed some payment terms on some of our supplier contracts to try to make sure that we can front them what they need to stay afloat. We're doing some creative stuff to try and help them be able to weather the storm.”

The Department's efforts to backstop the defense industrial base while taking steps to protect its workforce and purchase critical protective clothing like facemasks is still in its relative stages, despite the COVID-19 pandemic having been with us for months.

“We are just really beginning to pick up momentum,” Lord said.

https://breakingdefense.com/2020/04/pentagon-pumps-3b-into-industry-as-covid-19-delays-loom

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October 21, 2020 | International, Land, Security

Rheinmetall eyes do-over in new pitch of its Lynx vehicle to the US Army
Sebastian Sprenger COLOGNE, Germany — Rheinmetall is teaming with Textron Systems to pitch the Lynx KF41 vehicle as a Bradley replacement to the U.S. Army, the company announced Tuesday. The campaign marks the second time that the Düsseldorf, Germany-based company is targeting the Optionally Manned Fighting Vehicle program following an unsuccessful attempt last year that eventually saw the ground service halt the race. This time around, Rheinmetall is putting greater emphasis on a U.S. footprint, led by its growing American Rheinmetall Vehicles subsidiary based in Sterling Heights, Michigan. Textron, as the newcomer on Team Lynx, is meant to be front and center when it comes to manufacturing and robotics capabilities. “Textron Systems' Slidell, Louisiana, vehicle production facility has supported more than 15 armored vehicle programs of record supporting over 20 countries,” Henry Finneral, senior vice president and general manager of Textron Systems' Marine and Land Systems business, said in a statement. “We stand ready to support the team and the US Army and deliver a trusted platform for the future.” Matt Warnick, managing director at American Rheinmetall Vehicles, said the “teaming agreement brings together two of the world's leading providers of defense industry solutions." Raytheon remains part of the team. Executives hope the new Army competition will give all bidders more leeway in fine-tuning their eventual offers to the service's requirements. That marks a contrast to the previous acquisition attempt, where the ground service essentially wanted specific features already built into prototype vehicles, with little time for companies to adjust. This time around, the Army plans to downsize to five bidders, then three, before picking an eventual winner. A final request for proposals is expected late this year or early next. Service officials have put competitors on notice that an open architecture in the vehicle design will be at a premium, a feature that Rheinmetall touted in its bid notice. “The network is almost more important in some ways than building the combat vehicles,” Maj. Gen. Brian Cummings, program executive officer of ground combat systems, told Defense News in an interview ahead of the Association of the U.S. Army's virtual conference, which ended last week. Rheinmetall previously planned to present the teaming arrangement with Textron at this year's AUSA show if the event had taken place in person. https://www.defensenews.com/global/europe/2020/10/20/rheinmetall-eyes-do-over-in-new-pitch-of-its-lynx-vehicle-to-the-us-army/
April 15, 2024 | International, Naval

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June 29, 2020 | International, Naval

Here’s why Britain is struggling to form a fully effective carrier strike group
By: Andrew Chuter LONDON — Britain's Royal Navy took delivery of two new aircraft carriers, but a government report on the ships achieving operational capability has laid bare some obstacles toward making a fully effective carrier strike group. In a report released June 25, the National Audit Office pointed to delays in developing the Crowsnest airborne early warning radar and contracting to build the logistics ships destined to support the 65,000-ton carriers as ongoing problems for the Royal Navy. The NAO also raised questions about future funding. The Ministry of Defence is making slow “progress in developing the crucial supporting activities that are needed to make full use of a carrier strike group, such as the Crowsnest radar system and the ability to resupply the carriers. In addition, it has not established a clear view on the future cost of enhancing, operating and supporting carrier strike, which creates the risk of future affordability pressures,” the NAO said. Added the head of the watchdog: “The MoD also needs to get a firmer grip on the future costs of carrier strike. By failing to understand their full extent, it risks adding to the financial strain on a defense budget that is already unaffordable.” HMS Queen Elizabeth, the first of two carriers built by British industry in a £4.6 billion (U.S. $5.7 billion) program, is already undertaking extensive sea trials, with its F-35B jets ahead of a planned first deployment next year. The second carrier, HMS Prince of Wales, is also conducting sea trials but is some months behind its sister ship. The warships are not expected to be operated simultaneously. The NAO said the Lockheed Martin-led program to install Crowsnest radars on Royal Navy Merlin helicopters is running 18 months late and will impact how the British carrier strike force is initially deployed. The watchdog said the MoD is working to come up with an acceptable baseline radar by the time HMS Queen Elizabeth undertakes its initial deployment next year. “As at April 2020, the Department [the MoD] expected to achieve initial Crowsnest operating capability in September 2021, some 18 months later than planned,” the NAO reported. “As this is later than the December 2020 milestone for declaring initial operating capability for carrier strike, the Department is working to provide a credible baseline radar capability for the first deployment with the United States in 2021. It expects to recover some lost time to declare full operating capability in May 2023, 11 months later than planned. However, the existing timetable contains no contingency to accommodate any further slippage. The delays will affect how the Department can use carrier strike during this period.” British and U.S. Marine Corps jets will be based on the carrier during its first deployment, partly because the U.K. does not have a sufficient inventory of available jets. Eighteen of the aircraft have so far been delivered for use by the Royal Navy and the Royal Air Force Lockheed Martin secured the Crowsnest contract in 2017, with Searchwater radar supplier Thales and helicopter builder Leonardo as subcontractors. Crowsnest is a key element in the protection of the naval strike group, giving air, maritime and land detection and tracking capabilities. The NAO said the delay “has been caused by a subcontractor, Thales, failing to meet its contractual commitments for developing equipment and not providing sufficient information on the project's progress. Neither MoD nor its prime contractor, Lockheed Martin, were aware of these problems until it was too late, reflecting MoD's ineffective oversight of its contract with Lockheed Martin.” A Lockheed Martin UK spokesperson said the company is working to deliver the Crowsnest capability in time for HMS Queen Elizabeth's deployment. “As prime contractor for Crowsnest, we understand the fundamental component that this program delivers to the UK's Carrier Enabled Power Projection. We will continue to ensure that the program develops in line with our requirement to deliver the Crowsnest capability to support the first operational deployment of HMS Queen Elizabeth,” the spokesperson said. “We will work with our industrial partners and the MoD to address any developmental issues which arise, including the deployment of additional resources, if necessary, to maintain program timescales and deliver this critical capability to the Royal Navy.” Thales UK did not respond to Defense News' requests for comment by press time. The NAO partly blames the setbacks for why the MoD faces a “tight timetable” to develop full operating capability for a strike group by 2023. But the watchdog also highlighted the Fleet Solid Support program as another obstacle. The MoD had targeted 2026 for when the first of up to three logistics ships could provide ammunition, food and general stores to the carrier strike group, but that timeline has extended by up to three years as a result of ongoing uncertainty over the schedule to compete and build the vessels operated by the Royal Fleet Auxiliary. The MoD abandoned a competition to build the ships late last year, saying it was concerned about obtaining value for money. At the time, the program was mired in controversy over whether the contract should go to a British shipyard consortium or awarded to a foreign company. That issue remains unresolved. No date has officially been given for restarting the competition. Defence Secretary Ben Wallace told the parliamentary Defence Committee earlier this year that he thinks it will relaunch in September, but that has not been confirmed. Defence Committee Chairman Tobia Ellwood was particularly critical of the failure to provide the necessary support ships, noting that without them, the carriers' capability would be seriously undermined. “It'll be hotched and potched, only available for short operational journeys,” he told the Daily Telegraph on June 26. “It will be for display purposes only, and that's a very expensive toy.” Britain has only one solid support vessel, RFA Fort Victoria, that can replenish a carrier at sea. It entered service in 1994 and is due to retire in 2028, having had its life expectancy extended. The NAO report said the limitations of RFA Fort Victoria would have a knock-on effect to carrier operations. “Having only one support ship with limited cargo capacity slows the tempo and reach at which the Department [the MoD] can replenish a carrier group. In addition, the Department will have restricted options for deploying the carriers for much of 2022 because RFA Fort Victoria will be unavailable due to major planned maintenance work,” the NAO said. Responding to the report, an MOD spokesperson said: ”Carrier strike is a complex challenge, which relies on a mix of capabilities and platforms. We remain committed to investing in this capability, which demonstrates the U.K.'s global role. “Despite the disruptions of COVID-19, the carrier strike group is on track for its first operational deployment.” https://www.defensenews.com/naval/2020/06/26/heres-why-britain-is-struggling-to-form-a-fully-effective-carrier-strike-group/

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Pentagon Pumps $3B Into Industry As COVID-19 Delays Loom

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Lockheed Martin Awarded C2BMC-Next Contract To Enhance Global Interoperability This contract will accelerate innovation and continue leading the development of the Command and Control, Battle Management and Communications (C2BMC) system.

Lockheed Martin Awarded C2BMC-Next Contract To Enhance Global Interoperability
This contract will accelerate innovation and continue leading the development of the Command and Control, Battle Management and Communications (C2BMC) system.