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August 26, 2021 | International, Aerospace

Space Force's next generation of missile warning satellites passes major design milestone

With critical design review complete, Lockheed Martin can move forward with fabrication and integration of the Next Generation Overhead Persistent Infrared GEO satellites.

https://www.c4isrnet.com/smr/space-competition/2021/08/24/space-forces-next-generation-of-missile-warning-satellites-passes-major-design-milestone/

On the same subject

  • Boeing could be out of the Air Force’s competition for next-gen ICBMs for good

    October 22, 2019 | International, Aerospace

    Boeing could be out of the Air Force’s competition for next-gen ICBMs for good

    By: Valerie Insinna WASHINGTON — Boeing's risk reduction contract for the Air Force's Ground Based Strategic Deterrent program is functionally cancelled, the company announced Oct. 21. “Boeing is disappointed in the Air Force's decision to not allot additional funding for the GBSD Technology Maturation and Risk Reduction (TMRR) contract,” said Boeing spokesman Todd Blecher. “The Boeing team has delivered substantial value under the contract, achieved all contract milestones on time and received strong performance feedback from the Air Force.” “Continuing Boeing's TMRR contract would advance the Air Force's objectives of maturing the missile system's design and reducing the risk for this critical national priority capability,” he added. GBSD is the Air Force's program to replace its existing Minuteman III intercontinental ballistic missiles, a major priority for the service as well as for U.S. Strategic Command, which oversees the operations of America's nuclear arsenal. Earlier on Monday evening, Politico reported that the Air Force had sent a letter to Boeing last week declaring its intent to stop funding the TMRR contract. Without additional money from the Air Force to continue work, Boeing expected its funding stream for the GBSD contract to be exhausted on Oct. 18, the company stated in an Oct. 16 letter to the GBSD program office at Hill Air Force Base, Utah. “The Air Force's decision not to allocate any further funding to the TMRR contract requires immediate and irrevocable actions by Boeing to wind down contract performance within the allotted funds. These measures include the reassignment of approximately 300 Boeing employees and the flow-down of a Stop Work notice to all suppliers working on the TMRR contract,” states the letter, which was obtained by Defense News. Air Force spokeswoman Capt. Cara Bousie told Defense News that the service had not cancelled Boeing's TMRR contract. However, she declined to comment on whether the Air Force had sent Boeing a letter stating its intention to curtail funding for the contract. Regardless of the semantics, a decision to cut short the TMRR contract would effectively hand the GBSD award to Northrop Grumman, the sole company competing against Boeing to produce the weapon system. Both Boeing and Northrop were awarded risk reduction contracts worth up to $359 million in 2017, beating out Lockheed Martin for the chance to bring their designs into the production stage. But Boeing withdrew from the GBSD competition in July, claiming that Northrop Grumman's purchase of one of the only two U.S. solid rocket motor manufacturers — Orbital ATK, now known as Northrop Grumman Innovation Systems — gave the company an unfair advantage in terms of being able to offer the lowest-cost system. In a July 23 letter, Leanne Caret, who leads Boeing's defense business, wrote that the current acquisition approach gives Northrop “inherently unfair cost, resource and integration advantages.” “We lack confidence in the fairness of any procurement that does not correct this basic imbalance between competitors,” she stated. Caret added that a joint bid between the two companies was unrealistic, as Northrop would have no incentive to partner with Boeing when it can put forward a solo bid. However, Boeing switched tactics about a month later, with Frank McCall, its director of strategic deterrence systems, telling reporters in September that the company hoped to persuade the Air Force to force Northrop to partner with it. “We think clearly it's time for the Air Force or other governmental entities to engage and direct the right solution. Northrop has elected not to do that,” McCall said during the Air Force Association's annual conference. “So, we're looking for government intervention to drive us to the best solution.” The Air Force did not take Boeing up on that suggestion. Nor did Northrop, which pointedly released its list of suppliers days before the AFA conference. The list — which featured Aerojet Rocketdyne, Collins Aerospace, Lockheed Martin and other major defense contractors — did not include Boeing. Boeing, in its letter to the program office, stated that the dissolution of the risk reduction contract could disadvantage the Air Force as it moves forward with the GBSD program, even if it ultimately opts to sole-source from Northrop. “The Government's decision also prevents Boeing from completing the work left to be performed under the TMRR contract, including the major milestones of a successful Software System Review and Preliminary Design Review,” it said. "We believe this work would provide substantial value to the Government, irrespective of the fact that Boeing will not participate as a prime offeror under the current EMD [engineering, manufacturing and development] solicitation structure for the next phase of the GBSD program. In September, McCall pointed to Boeing's ongoing risk reduction work on GBSD as a positive sign that the service may not be ready to sole-source the program to Northrop. “The service is maintaining our work," he said. “They continue to accept our deliverables, continue to fund our contract. So, I think we're in good shape with the service.” But with the TMRR contract revoked, Boeing's last hope may be an appeal to Congress. Sen. Doug Jones of Alabama as someone who has already raised shown support for Boeing's position, McCall said in September. McCall declined to name others, but should this turn into a legislative fight, it could come down to Boeing's supporters – with strongholds in Alabama, Washington and Missouri – versus those of Northrop Grumman. https://www.defensenews.com/smr/nuclear-arsenal/2019/10/22/boeing-could-be-out-of-the-air-forces-competition-for-next-gen-icbms-for-good

  • Opinion: How New ‘Predators’ Are Reshaping Aerospace Landscape

    March 16, 2020 | International, Aerospace

    Opinion: How New ‘Predators’ Are Reshaping Aerospace Landscape

    By Antoine Gelain Behind the big aerospace and defense (A&D) primes like Boeing and Airbus and the “Super Tier-1s” such as United Technologies (UTC) and GE, a very different type of company is shaping the global A&D industrial landscape in a way that may be even more impactful than high-profile UTC-Raytheon-type mergers. Companies such as Teledyne, TransDigm and Heico are the spearheads of a breed of A&D players dedicated to “components and subsystems,” with explicit and perfectly executed “horizontal” external growth strategies. Their track records are impressive: These three companies—with combined revenues of more than $10 billion—have collectively made close to 200 acquisitions and delivered more than 20% average annual growth rate in either profitability or share value over the last 20 years. Thanks to such returns and skyrocketing market valuations, they are able to outbid most other contenders when going after an acquisition target by leveraging the so-called “accretive effect.” This effect boosts the acquiring company's earnings per share, as long as the price paid for the target as a ratio of the enterprise value (EV) over its earnings before interest, taxes, depreciation and amortization (EBITDA) is lower than that of the acquiring firm. As it happens, the current EV/EBITDA ratio of the three above-mentioned companies stands at more than 18 (see graph). By comparison, most other A&D companies have an EV/EBITDA ratio in the 9-13 range. Such “buying power” is enhanced by operational synergies (for instance, in corporate overheads, sales and marketing), which immediately boost the profitability of the acquired company and can therefore be factored in the offer price. This gives them an additional edge against pure financial investors like private equity (PE) funds, which have historically been strong buyers of such component and subsystem businesses. Two recent deals in Europe (one still ongoing) illustrate this new balance of power. The first concerns Souriau-Sunbank, a $360 million-revenue specialist in interconnection technology for harsh environments. After being owned successively by two PE funds and bought by Esterline (now TransDigm) in 2011, it was again put up for sale last year. While expectations were that a PE fund would grab it, another industrial buyer, Eaton Corp., won the contest, paying the hefty price of $920 million (an EV/EBITDA multiple of 12). The second deal relates to a French company called Photonis, a world leader in night-vision technology for defense and space applications, for which Teledyne is apparently bidding—and offering a price 30% higher than the highest PE bid! These deals highlight the limits of the traditional private equity model (too short-term and too short-sighted) and why the “new predators”—all publicly listed companies—are in a much better position to continue to thrive. In fact, by combining “private equity-like growth in value with liquidity of a public market,” as TransDigm puts it, they are not only beating PE players at their own game, but they are also capturing a significant share of the A&D capital market by offering investors an attractive alternative to the traditional vertically integrated groups such as UTC, Thales or Safran. These groups are typically too busy focusing on large systems and equipment to realize that they would actually benefit from articulating a proper “component and subsystem” strategy. They would benefit not only because their portfolios are still full of such businesses, but also because their long-term competitiveness largely depends on their ability to nurture a strong network of strategic suppliers, in terms of both criticality for their own systems and national sovereignty. As it happens, Photonis seems to be such a strategic supplier, since the current French government just announced it would veto the Teledyne deal, hoping to give other French or European companies or investors time to make a competitive offer for the business. But because PE funds, at least in Europe, are somewhat faint-hearted when it comes to ambitious sector-specific “horizontal” portfolio strategies, and because Europe has no industrial player able to compete with the likes of Teledyne, the outcome of the process is still highly uncertain. In any case, Teledyne, Heico, Transdigm and similar companies are surreptitiously reshaping the A&D industrial landscape by buying technological nuggets and component businesses left and right, on both sides of the Atlantic. In the process, they are boosting their shareholders' returns and changing the balance of power with both traditional private equity investors and large vertically integrated A&D groups. As the saying goes: One man's meat is another man's poison. https://aviationweek.com/aerospace/manufacturing-supply-chain/opinion-how-new-predators-are-reshaping-aerospace-landscape

  • Move of Canadian Forces aerospace testing organization to Ottawa delayed by construction problems, other issues

    September 10, 2023 | International, Aerospace

    Move of Canadian Forces aerospace testing organization to Ottawa delayed by construction problems, other issues

    Fifty-four Aerospace Engineering Test Establishment members are in temporary space now, and the move from Alberta won't finish until 2026.

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