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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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  • Boeing’s big month capped off with hat trick of new contracts

    October 1, 2018 | International, Aerospace

    Boeing’s big month capped off with hat trick of new contracts

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Boeing defeated Lockheed Martin and General Atomics to win the program — and that victory allows Boeing to cement its own status as the Navy's premier manufacturer of fixed-wing aircraft. “A Lockheed Martin win would have cemented its position as the builder of ‘next-gen' naval aviation platforms while Boeing would have been relegated to manufacturing fleet workhorses,” Schweizer said in his assessment of the award. “General Atomics would have a been a one-off, but we thought they would been a favorite for a low-cost, low-risk design.” Then on Monday, Boeing won another big competition — this time worth up to $2.38 billion — for the Air Force's UH-1N replacement helicopter. Boeing and Leonardo were immediately obligated $375 million for the initial four MH-139 helicopters, which will be built at Leonardo's commercial AW-139 production plant in Philadelphia. 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Winning T-X was “possibly critical” for Boeing's St. Louis plant and for its defense business to remain a competitive player in tactical aircraft design, said Callan. “The MQ-25 win helps sustain production at that facility, which now builds F/A-18s and F-15s,” he wrote after the Sept. 27 announcement. “However, the F/A-18 and F-15 lines may end by the mid-2020s. T-X enables Boeing to keep that facility humming and therefore in the hunt for Penetrating Counter Air and other new military aircraft programs.” Analysts like Callan and Schweizer had speculated that Boeing would bid very aggressively to try to win the contract, but the question was whether the company could possibly offer a new purpose-built design at a significantly lower price point than competitors Lockheed Martin and Leonardo, which both proposed aircraft designs already in production and use by foreign militaries. It appears Boeing may have been able to do just that. 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  • How the Pentagon can improve AI adoption

    July 8, 2019 | International, Other Defence

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Successfully operationalizing AI starts early. AI is an exciting new technology, but agencies too enamored with the hype run the risk of missing out on the real benefits. Too many organizations have developed AI pilot capabilities that work in the lab but cannot support the added noise of real-world environments. Such short-term thinking results in wasted resources. Agencies must think strategically about how the AI opportunities they choose to pursue align with their real-world mission and operations. Leaders must think through the processes and infrastructure needed to seamlessly extend AI to the enterprise at-scale. This involves building scalable infrastructure, data stores and standards, a library of reusable tools and frameworks, and security safeguards to protect against adversarial AI. 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To this end, in May, three Senators introduced the bipartisan Artificial Intelligence Initiative Act, which includes provisions for establishing a National AI Coordination Office and national standards for testing AI algorithm effectiveness. Building auditability and validation functions into AI not only ensures trust and adoption, but also reduces risk. By establishing proactive risk management procedures and processes for continuous testing and validation for compliance purposes, organizations can ensure that their AI systems are performing at optimal levels. Governance controls and system auditability also ensure that AI systems and tools are robust against hacking and adversarial AI threats. AI could be the most transformative technological development of our lifetime—and it's a necessity for maintaining America's competitive edge. 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