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May 6, 2020 | International, Aerospace, Land

The Army’s future vertical lift plan may have a supplier problem

By: Aaron Mehta

WASHINGTON — Army rotorcraft programs could net industry an average of $8 billion to 10 billion per year over the next decade — but defense companies can expect major challenges for its lower-tier suppliers, some of whom might choose not to come along for the ride.

Those are the findings of a new study by the Center for Strategic and International Studies, released Wednesday. It follows a November report outlining cost concerns about the service's Future Vertical Lift (FVL) plan.

The Army plans to field a future attack reconnaissance aircraft, or FARA, by 2028 and a future long-range assault aircraft, or FLRAA, by 2030. The modernization program is one of the top priorities for the Army.

First, the good news for industry. The study found an annual market of $8 billion to 10 billion for Army rotorcraft programs over the next decade, with a potential dip occurring only in 2026, when the two new programs are spinning up. That's a strong figure that should keep the major defense companies happy.

However, lower-tier companies may find themselves unprepared to actually manufacture FLRAA and FARA parts, given the newer production techniques the Army plans to use — things like additive manufacturing, robotics, artificial intelligence, digital twins, and data analytics. And if that happens, the service could face a supplier problem that could provide a major speed bump for its plans of having the systems ready to go at the end of the decade.

Convincing those suppliers, many of whom lack cash on hand for major internal investments at the best of times, to put money down in the near term to redevelop their facilities and retrain people is going to be an “expensive issue,” said Andrew Hunter, who co-authored the study for CSIS along with Rhys McCormick. “They need a really compelling reason to invest.”

“For a company that is devoted to the defense aviation market, they don't necessarily have a choice to not make the transition,” Hunter told reporters in a Tuesday call. “However, there is a dollars and cents issue, which is you have to be able to access the capital. If you can't, the primes will quickly go somewhere else.”

And some companies with a broader market share in the commercial world may decide investing in modernization isn't worth the effort and simply leave the defense rotorcraft market, leaving the primes to scramble to find replacements. In that case, Hunter said, the primes could potentially look to bring that work in-house.

Companies “are looking at the equation” of the commercial versus defense markets when making these decisions, said Patrick Mason, the Army's top aviation acquisition official. But he noted that the recent COVID-19 pandemic, which his hitting commercial aviation firms particularly hard, may cause some companies to consider the benefits of defense, which is historically smaller but more stable than the commercial aviation world.

Mason also emphasized the importance of keeping suppliers with experience in the unique heat requirements or material aspects as part of the service's rotorcraft supply chain, saying “Those are the ones we remain focused on because those are the ones who could end up as a failure.”

https://www.defensenews.com/2020/05/06/the-armys-future-vertical-lift-plan-may-have-a-supplier-problem/

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    February 25, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

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These contracts provide for construction and maintenance of roadways, bridges, sidewalks, parking areas, airfields and runways to include subsequent services which are typical activities that promote safe and efficient transportation. Work will be performed at various locations in Colorado to include Buckley Air Force Base, Cheyenne Mountain Air Force Station, Fort Carson Army Post (to include Piñon Canyon and the Pueblo Chemical Depot), Peterson Air Force Base, Schriever Air Force Base, and the U.S. Air Force Academy (to include the Farish Memorial Recreation Area, and the Bulls Eye Auxiliary Airfield). Work is expected to be complete by March 2026. No funds are being obligated at time of award. These contracts were the result of a competitive acquisition and fourteen offers were received. The 50th Contracting Squadron, Schriever Air Force Base, Colorado, is the contracting activity. 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The base was awarded on a sole source in accordance with Federal Acquisition Regulation 6.302-1- only one responsible source and no other supplies or services will satisfy agency requirements. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity. CIRCOR Naval Solutions LLC, Warren, Massachusetts, is awarded an estimated $13,294,404 requirements contract for a broad range of pump parts in support of refurbishment and maintenance of existing pumps installed on various Military Sealift Command vessels. Delivery of parts will occur at various locations on the East and West coast of the U.S., and is expected to be completed by Feb. 24, 2024. No funding will be obligated at the time of award. This contract was sole-sourced, with a proposal solicited via the Federal Business Opportunities website, with one offer received. The U.S. Navy's Military Sealift Command, Norfolk, Virginia, is the contracting activity (N3220519D9006). 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