October 10, 2023 | International, C4ISR
The strategy pursues a two-lane approach to procuring launches -- one for emerging providers a second for rockets that can fly more demanding missions.
May 26, 2021 | International, Aerospace, Naval, Land, C4ISR, Security
If the first quarter is any indication, A&D is about to throttle up share buybacks and dividend payments into afterburn.
July 19, 2018 | International, Land
By Anthony Capaccio The U.S. Army is delaying approval of full-scale production of BAE Systems Plc's new self-propelled howitzer, citing the need to improve quality before proceeding with additional contracts options valued at about $1.3 billion. The Army postponed triggering the most lucrative phase of the program for London-based BAE to “adequately address quality control issues,” service spokeswoman Ashley John said in an email Wednesday. “The Army will continue to work closely with BAE leadership to resolve the concerns.” The delay came after Bloomberg News reported last week that the howitzer's manufacture was hobbled by poor welding, supply-chain problems and delivery delays. Among the setbacks have been a six-month halt in deliveries last year because of welding flaws and the return of 50 of 86 vehicles that had already been delivered to repair production deficiencies. The U.S. Army is delaying approval of full-scale production of BAE Systems Plc's new self-propelled howitzer, citing the need to improve quality before proceeding with additional contracts options valued at about $1.3 billion. The Army postponed triggering the most lucrative phase of the program for London-based BAE to “adequately address quality control issues,” service spokeswoman Ashley John said in an email Wednesday. “The Army will continue to work closely with BAE leadership to resolve the concerns.” The delay came after Bloomberg News reported last week that the howitzer's manufacture was hobbled by poor welding, supply-chain problems and delivery delays. Among the setbacks have been a six-month halt in deliveries last year because of welding flaws and the return of 50 of 86 vehicles that had already been delivered to repair production deficiencies. Self-propelled 155mm howitzers are the centerpiece of the Army's artillery. The weapon is mounted on a tracked vehicle and travels with another that hauls ammunition. The Army's “long-range precision strike” program tops the service's list of modernization priorities. “We are working very closely” with the Army and the Defense Contract Management Agency, which oversees contractor performance, “and are confident the actions we have taken will support the effective transition to full production,” BAE spokeswoman Alicia Gray said in a statement. The Army eventually wants to buy 576 howitzers and ammunition carriers in an $8.1 billion program. An initial $413.7 million contract laying the groundwork for full production was awarded in December. A full-production decision would have increased vehicle production to about 60 from 48 a year. The program has been in low-rate production for several years. Gray said last week that the company is investing about $125 million to upgrade equipment to prepare “for an expanded production portfolio and accommodate the expected surge in customer requirements.” ‘Tough-Love' Approach The delay “is consistent with the increasing Army ‘tough-love' approach to contractor program-execution challenges,” such as its continuing refusal to accept delivery of Boeing Co.'s AH-64 Apache attack helicopters because of corrosion of a critical rotor assembly part that needs to be fixed, according to James McAleese of McAleese & Associates, a McLean, Virginia-based defense consulting firm. Contractors should expect “quality assurance scrutiny to increase” as the Army “drives aggressive increases in multiple production programs” for missiles, ammunition and ground combat vehicles, he said. Sections of the howitzers are initially produced at BAE's York, Pennsylvania, facility with final assembly in Elgin, Oklahoma. The program has a strong advocate in Senator Jim Inhofe of Oklahoma, the No. 2 Republican on the Senate Armed Services Committee. In its version of the fiscal 2019 defense policy bill, the panel authorized spending $110 million more than the $351.8 million requested. In a new report, the Pentagon's testing office said that testing of the howitzer at Fort Riley in Kansas found it was “operationally effective,” providing accurate fire as it traveled with other units of a brigade combat team while evading enemy counter-fire. That, however, is when the howitzers weren't dogged by reliability problems, according to the report by testing office Director Robert Behler. It cited “the number of breech, cannon, and firing train sub-component failures” and “interruptions from stuck and ruptured primers” that “contributed to delays in mission completion.” The Army's leadership is on a campaign to assure the public it's improving the oversight of its major acquisition programs, including getting its new Futures Command ready for initial operations. The Army last week chose Austin, Texas, as the location for the command that will consolidate brainpower to evaluate future threats facing the Army, decide on the technology needed to counter them and oversee development of that technology through existing commands. https://www.bloomberg.com/news/articles/2018-07-18/bae-s-1-3-billion-contract-for-howitzer-delayed-by-u-s-army
February 26, 2020 | International, Aerospace
The Air Force's new investment strategy is designed to "catalyze the commercial market by bringing our military market to bear," says Roper. By THERESA HITCHENS PENTAGON: The Air Force will roll out the final stage in its commercial startup investment strategy during the March 13-20 South By Southwest music festival, granting one or more contracts worth at least $10 million to startups with game-changing technologies, service acquisition chief Will Roper says. The first-of-its kind event in Austin, called the Air Force Pitch Bowl, will match Air Force investment with private venture capital funds on a one to two ratio, according to a presentation by Capt. Chris Benson of AFWERX at the Strategic Institute's Dec. 4-5 “AcquisitionX” meeting. So, if the Air Force investment fund, called Air Force Ventures, puts in $20 million, the private capital match would be $40 million. AFWERX, the Air Force's innovation unit, has one of its hubs in Austin. “This has been a year in the making now, trying to make our investment arm, the Air Force Ventures, act like an investor, even if it's a government entity,” Roper explained. “We don't invest like a private investor — we don't own equity — we're just putting companies on contract. But for early stage companies, that contract acts a lot like an investor.” The goal is to help steer private resources toward new technologies that will benefit both US consumers and national security to stay ahead of China's rapid tech growth, Roper told reporters here Friday. The Air Force wants to “catalyze the commercial market by bringing our military market to bear,” he said. “We're going to be part of the global tech ecosystem.” Figuring out how to harness the commercial marketplace is critical, Roper explained, because DoD dollars make up a dwindling percentage of the capital investment in US research and development. This is despite DoD's 2021 budget request for research, development, test and evaluation (RDT&E) of $106.6 billion being “the largest in its history,” according to Pentagon budget rollout materials. The Air Force's share is set at $37.3 billion, $10.3 billion of which is slated for Space Force programs. “We are 20 percent of the R&D is this country — that's where the military is today,” Roper said. “So if we don't start thinking of ourselves as part of a global ecosystem, looking to influence trends, investing in technologies that could be dual-use — well, 20 percent is not going to compete with China long-term, with a nationalized industrial base that can pick national winners.” The process for interested startups to compete for funds has three steps, Roper explained, beginning with the Air Force “placing a thousand, $50K bets per year that are open.” That is, any company can put forward its ideas to the service in general instead of there being a certain program office in mind. “We'll get you in the door,” Roper said, “we'll provide the accelerator functions that connect you with a customer. “Pitch days” are the second step, he said. Companies chosen to be groomed in the first round make a rapid-fire sales pitch to potential Air Force entities — such as Space and Missile Systems Center and Air Force Research Laboratory — that can provide funding, as well as to venture capitalists partnering with the Air Force. As Breaking D broke in October, part of the new acquisition strategy is luring in private capital firms and individual investors to match Air Force funding in commercial startups as a way to to bridge the ‘valley of death' and rapidly scale up capability. The service has been experimenting with ‘pitch days' across the country over the last year, such as the Space Pitch Days held in San Francisco in November when the service handed out $22.5 million to 30 companies over two days. Roper said he intends to make “maybe 300 of those awards per year,” with the research contracts ranging from $1 million to $3 million a piece and “where program dollars get matched by our investment dollars.” The final piece of the strategy, Roper explained, is picking out the start-ups that can successfully field game-changing technologies. “The thing that we're working on now is the big bets, the 30 to 40 big ideas, disruptive ideas that can change our mission and hopefully change the world,” Roper said. “We're looking for those types of companies.” The Air Force on Oct. 16 issued its first call for firms to compete for these larger SBIR contracts under a new type of solicitation, called a “commercial solutions opening.” The call went to companies already holding Phase II Small Business Innovation Research (SBIR) awards. The winners will be announced in Austin. If the strategy is successful, Roper said, the chosen firms will thrive and become profitable dual-use firms focused primarily on the commercial market. “The, we're starting to build a different kind of industry base,” Roper enthused. “So, we've gotta get the big bets right. Then most importantly, if you succeed in one of the big bets, then we need to put you on contract on the other side, or else the whole thing is bunk.” https://breakingdefense.com/2020/02/air-force-to-pump-new-tech-startups-with-10m-awards