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January 30, 2024 | International, Land

Three NATO allies sign deal to speed up military deployments to eastern flank

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  • ‘You need two to tango’: Naval Group CEO Hervé Guillou on business in Europe and Down Under

    March 17, 2020 | International, Naval

    ‘You need two to tango’: Naval Group CEO Hervé Guillou on business in Europe and Down Under

    By: Sebastian Sprenger COLOGNE, Germany — Hervé Guillou, who took the helm at France's shipbuilder Naval Group in 2014, will retire from the company later this month due to an age limit that comes with the job. He made consolidation in Europe's naval sector a key tenet of his tenure, though there has been little movement so far other than Naval Group's cooperation with Italian shipyard Fincantieri and the resulting Naviris joint venture. With fears of demand drying up at home, Naval Group made an aggressive sales push across the world, perhaps most notably with the multibillion-dollar Australian Attack-class submarine program. The project received some criticism in Australia in recent months, though Guillou brushed it aside and said the Australian government remains committed to the program. Guillou spoke to Defense News' European editor, Sebastian Sprenger, by phone on March 10 about the international marketplace and industrial cooperation. With talk of a need for the European naval industry to consolidate, to what extent do you view Naval Group as a European company? We are the European leader of naval defense and as a strategic pillar we are willing to contribute to the building of the Europe of defense. We could not deliver the value to our shareholders if we didn't have a reasonable balance between our national programs like Barracuda or FDI frigates, coupled with a number of significant programs for export. Like Dassault Aviation, we need about 40-60 percent of value added for export if we want to maintain competences and competitiveness on the full scope of our offer. In our effort for internationalization, we have two streams. One is direct sales; we have established 10 new companies outside France. We have seven new customers in seven new countries such as Belgium, Netherlands, Argentina and Romania. That completely changed our international base. The second aspect is Europe, starting with the joint venture with Fincantieri. We have always said other companies can join. The process is slow, but we are absolutely clear that consolidation is needed if we want European sovereignty to be preserved. We are on the way. Naviris is one step. I hope there will be others. But it's a slow move, particularly in the naval industry because of the political visibility and because of the huge differences between the operational concepts of the European navies. Today, the closest to the French Navy would be the British Navy. But the British are on another agenda after Brexit [Britain's exit from the European Union]. On the submarine side, our closest partner in terms of worldwide, expeditionary capacity for oceanic operations are the Netherlands. On surface ships, because we have done Horizon and FREMMs together, it is Fincantieri. Today, Italy and the Netherlands are the likely first steps in our European road map, but others are welcome to join. In late 2018, you said you would make an overture to Germany's ThyssenKrupp Marine Systems for some kind of cooperation agreement once the Australian submarine deal is settled. Did that happen? No. You need two to tango. I don't know yet what is the consensus — or not — between the ThyssenKrupp leadership, government policies and parliament. It's not for me to interfere in that. I have been sending clear and open messages, and [Fincantieri CEO] Giuseppe Bono did the same, publicly. But today, we have no real answer. Germany and France have a land project together, the European battle tank, and two air projects, the Eurodrone and the Future Combat Air System. Do you think a naval project besides those is feasible? I think you cannot copy the aircraft or the land model to the naval sphere. Again, there are no likely bilateral or trilateral programs with Germany in the naval business because Germany has very different operational needs for their Navy than France or Italy. Their submarines are more coastal submarines, geared toward the Baltic Sea. Their surface ships — for example, when you look at the MKS 180 — are of a total different specification than the FREMM or the FDI, which are heavy, weaponized, combat-focused frigates. The Germans have no need for anything like an aircraft carrier, and they are not going to build SSNs [attack submarines]. So today, in my view, if we do something with Germany, it would be more of an industry agenda, as we did first with Italy, to be able to add and find synergies in our international presence, rather than relying on a bilateral program. And the way our industry consolidates is very different. But we have a survival issue in industry, to be able to find volumes, procurement synergies, export opportunities among ourselves and being mindful that the real competitor is more China and Russia and not Germany, Italy or the Netherlands. We continue to explain that, but we need to be patient. I understand well where the Germans come from. With three German yards — TKMS, Lürssen, and Blohm and Voss — it's more fragmented and difficult for them. What about the argument that it would be hard to mix a former state-owned company like Naval Group with shipyards who don't share that kind of heritage? That is totally wrong, and it's totally badmouthing. We are a company with a private status and an independent board even if we have a French government shareholder. Governance guidelines apply to Naval Group like they apply to all French industry in the market. The government does not interfere with the social interests of the company, and my board would not accept it. The same applies to the false charge that we get government subsidies. It is totally untrue. If it was the case, everybody could file claims against us in the European courts. Some of your competitors have argued that Naval Group is too diversified to be compatible with firms that do nothing but shipbuilding. Again, this is not true. Diversification has been put under control. During my time at Naval Group, I closed two big projects in the nuclear area, which were losing money. I have restricted hugely the area of marine energy production, concentrating on offshore wind and geothermal. We are 98 percent focused on naval business. This is not a good subject for our competitors to argue about. What are your expectations of the new French aircraft carrier and Naval Group's role in the program? Naval Group's role is very clear: We shall be the prime contractor for such program. We are the only one capable of designing and integrating such a warship, which includes the concurrent engineering of the combat system and of the platform, including aircraft, drones, the new electromagnetic catapult from the U.S. — more than 200 functions in all. The hull will be built in St. Nazaire, at Chantiers de l'Atlantique, where the big dock for cruise ships will be used. We expect a decision on the future aircraft carrier program sometime this year. I cannot predict the exact timing, but I am optimistic that the decision will be made this year. We have delivered to DGA [the French defense procurement agency] our preliminary studies, our cost-capability tradeoffs; we have given a lot of details as well on the timing of the possible entry into service of such a new aircraft carrier. The government now has all the information they asked to make their decision. Naval Group has been criticized in Australia about the Attack submarine program recently. Did that catch you by surprise? I must say I'm more disappointed than surprised. We have very, very strong support from our customer and from the Australian government. We know where these attacks come from, and we know how it is used in Europe to damage our reputation for ongoing and upcoming competitions. The first crisis was about postponing by five weeks a design review for a 30-year program. The attacks around that are unfair. The other controversy was about including local industry. What is the official plan on workshare for Australian companies? There is no contractual obligation. But we are in a strategic partnership, and there is a clear commitment from Naval Group to reach 60 percent of local content, which is more than the Collins class. And based on our experience in Brazil or in India, we truly believe that at the end of the day we will reach it. It will take time. It is a long, long way to train new industries, to train people, to transfer technology. But we are absolutely committed to Australia, to this partnership to deliver sovereignty, and to deliver this very, very significant percentage of Australian contracts. Do you think the EU is on a good trajectory to foster defense cooperation? I don't know yet. There are two sides of the coin. On the defense side, I would say the progress made in the last three years is absolutely huge. The European Defence Fund and the European Defence Industrial Development Programme, for example, are significant achievements of the previous commission. Is it due to U.S. new policies? Is it due to Brexit? I don't know. It's probably a mix of a lot of things. With the new commission, my understanding is that there is a clear intention to continue in this direction. Nevertheless, there is the budget discussion, which is not completely finished, and where the budgets dedicated to defense are still under threat. We need time to see what the results will be. I'm rather optimistic. The second issue is more in the civilian-economic area, where we still have a significant issue with the rules for anti-trust in European rules. Those are currently preventing European industry to consolidate at a time when we see the Chinese, Korean and U.S. industries are consolidating. In that context, in the shipbuilding sector, we're not hearing good things about the Fincantieri/Chantiers de l'Atlantique case. This is a big worry for us, as this would prevent European players to turn into world players. How will the European Patrol Corvette become a truly European program? Of course, it cannot be a 27-country project. So Europe has to start with two, three or four. This is a Franco-Italian initiative, which is supported by our two navies and our two governments. It was initiated by Fincanteri and Naval Group, and is carried out by Naviris, our joint venture. Greece has declared their interest formally to join the program. Spain is starting to study the case, though they have not declared officially. If we are three, four countries, it's good enough to start. https://www.defensenews.com/global/europe/2020/03/16/you-need-two-to-tango-naval-group-ceo-herve-guillou-on-business-in-europe-and-down-under/

  • Contract Awards by US Department of Defense - November 29, 2019

    December 2, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - November 29, 2019

    DEFENSE LOGISTICS AGENCY Bell Boeing Joint Project Office, California, Maryland, has been awarded a maximum $218,749,892 modification (P00006) exercising the first one-year option period of a one-year base contract (SPRPA1-20-F-CD01) with four one-year option periods for performance based logistics and engineering support for the V-22 platform. This is a firm-fixed-price requirements contract. Locations of performance are Texas and Pennsylvania, with a Nov. 30, 2020, performance completion date. Using customers are Navy, Air Force, Marine Corps and Foreign Military Sales to Japan. Type of appropriation is fiscal 2020 through 2021 Air Force, U.S. Special Operations Command, Navy and FMS appropriated funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. NAVY Raytheon Integrated Defense Systems, San Diego, California, is awarded a $74,726,993 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract for design agent engineering services for networks and network user systems on operational landing platform/dock (LPD)-17 class amphibious transport dock ships. Work will be performed in San Diego, California (80%); Norfolk, Virginia (15%); Mayport, Florida (5%) and is expected to be complete by December 2024. Fiscal 2020 operations and maintenance, (Navy) funding in the amount of $689,680 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S. Code 2304 (c) (1), only one responsible source and no other supplies or services will satisfy agency requirements, as implemented by Part 6.302-1 of the Federal Acquisition Regulation. This contract was issued on a sole-source basis to Raytheon Integrated Defense Services. This requirement is for design agent engineering and technical services for the overall management, development, testing, troubleshooting, repair, configuration, maintenance and fleet sustainment of fielded networks and associated network user systems/clients on operational LPD 17-class amphibious transport dock ships. These services are in support of Naval Surface Warfare Center, Philadelphia Division, Code 52, which is responsible for the lifecycle in-service engineering agent support of mission critical interior communications data networks. The Naval Surface Warfare Center, Philadelphia Division, Philadelphia, Pennsylvania, is the contracting activity (N64498-20-D-0001). W.R. Systems, Fairfax, Virginia, is awarded a modification to a previously awarded (N65236-19-D-8001) indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, with provisions for firm-fixed-price task orders, performance based contract. This single award contract (SAC) is currently in its first year with a Feb. 15, 2020, contract expiration date. This modification increases the basic contract estimated ceiling by $61,999,996, and changes the cumulative estimated value of the contract from $49,999,995, to $111,999,992. This SAC is for position, navigation and timing and geospatial information services support to naval ships and shore facilities. Work will be performed in Norfolk, Virginia, and is expected to be completed by February 2020. This SAC was previously procured competitively by full and open competition via the Naval Information Warfare Systems Command e-commerce central website and the Federal Business Opportunities website. This sole-source contract was not competitively procured in accordance with 10 U.S. Code 2304(c)(1) and only one responsible source (Federal Acquisition Regulation subpart 6.302-1). The Naval Information Warfare Center, Charleston, South Carolina, is the contracting activity. General Dynamics/Electric Boat, Groton, Connecticut (N66604-20-D-D001); Huntington Ingalls/Newport News Shipbuilding, Newport News, Virginia (N66604-20-D-D002); and Oceaneering International Inc., Chesapeake, Virginia (N66604-20-D-D003) are being awarded a $49,921,536 indefinite-delivery/indefinite-quantity (ID/IQ) multiple-award contract to fabricate submarine safety/Level 1 (SUBSAFE/L1) hardware, and provide technical and engineering services. For these base ID/IQ five-year contracts, funding will not be obligated at time of award; the $1,000 minimum guarantee will be executed on each awardee's initial task order. Work will be performed at the contractors' locations and minimally at government locations, and is expected to be completed by November 2024. This multiple-award contract was competitively procured with three acceptable offers received via the Federal Business Opportunities website. This requirement is to provide SUBSAFE/L1 (or related) hardware, systems engineering, technical analyses, mechanical and electrical design, manufacturing, installation, test and evaluation, maintenance and repair services required to support existing and future fleet programs. In accordance with 10 U.S. Code 2304(c)(1), only a limited number of responsible sources and no other supplies or services will satisfy the needs of the agency. This tasking was limited to those activities qualified to perform SUBSAFE work per the Naval Sea Systems Command Notice 5000, fiscal 2019 Navy working capital funds. The Naval Undersea Warfare Center Division Newport, Newport, Rhode Island, is the contracting activity. Washington State Community College District #3, Bremerton, Washington, is awarded a not-to-exceed $18,000,000 five-year indefinite-delivery/indefinite-quantity contract for educational services in support of the apprenticeship, helper and after-hours program, which pays for tuition, lab fees, math fees, tutoring services and assessment fees in an effort to provide customers with quality, timely and cost efficient maintenance, modernization, and technical and logistics support by maintaining a highly trained and skilled workforce. These services are in support of Puget Sound Naval Shipyard and Intermediate Facility in Bremerton, Washington. This contract does not include options. Work will be performed in Bremerton, Washington, and is expected to be complete by December 2024. No funding will be obligated at the time of award. In accordance with Federal Acquisition Regulations Part 15, this was a competitive procurement with one offer received via the Federal Business Opportunities website. Operations and maintenance (Navy) funding will be obligated at the task order level prior to each semester. This is a commercial service contract that was competed in accordance with Federal Acquisition Regulation Part 15. Only one proposal by the incumbent was received. The Puget Sound Naval Shipyard, Bremerton, Washington, is the contracting activity (N4523A20D1300). ARMY General Dynamics Mission Systems, Taunton, Massachusetts, was awarded a $9,164,584 cost-plus-fixed-fee contract to procure contractor field service representative support services for the warfighter. One bid was solicited with one bid received. Work will be performed in Taunton, Massachusetts, with an estimated completion date of Nov. 30, 2020. Fiscal 2019 other procurement, Army funds in the amount of $6,363,737 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W15P7T-20-F-0004). AIR FORCE Tunista Services LLC, Honolulu, Hawaii, has been awarded a $7,362,228 firm-fixed-priced contract modification (P00006) to previously awarded contract FA4855-18-C-0001 for continuation of operations, maintenance and support services at Melrose Air Force Range. The contract modification provides for the exercise of option year two procured under the basic contract. Work will be performed at Melrose, New Mexico, and work is expected to be completed by Nov. 30, 2020. The total cumulative face value of the contract is $22,676,639. Fiscal 2020 operations and maintenance funds in the amount of $7,362,228 are being obligated at the time of award. The 27th Special Operations Contracting Squadron, Cannon Air Force Base, New Mexico, is the contracting activity. https://www.defense.gov/Newsroom/Contracts/Contract/Article/2029052/source/GovDelivery/

  • Pratt and Whitney and JetBlue sign long-term service agreement for 230 V2500® engines

    July 31, 2020 | International, Aerospace

    Pratt and Whitney and JetBlue sign long-term service agreement for 230 V2500® engines

    East Hartford, Conn., July 30, 2020 /PRNewswire/ -- JetBlue Airways ("JetBlue") and Pratt & Whitney, a Raytheon Technologies business (NYSE: RTX), through its affiliate, IAE International Aero Engines AG ("IAE"), announced that the airline has signed a 13-year EngineWise® fixed-price agreement for 230 V2500® engines that power the airline's A320ceo family fleet. "The V2500 engine has been the workhorse of the JetBlue fleet since the airline's inception," said Steve Priest, Chief Financial Officer at JetBlue. "This agreement provides predictable maintenance and supports efficient operations needed to serve our customers for many years to come." The highly reliable and fuel efficient V2500 engine is offered through IAE, a multinational aero engine consortium whose shareholders comprise Pratt & Whitney, Pratt & Whitney Aero Engines International GmbH, Japanese Aero Engines Corporation and MTU Aero Engines. JetBlue operates a fleet of 193 Airbus A320ceo family aircraft powered by the V2500 engine. The airline has also ordered 85 GTF-powered Airbus A320neo family aircraft, of which 10 have already been delivered. In addition, JetBlue has 70 GTF-powered Airbus A220 aircraft on order, with deliveries scheduled to begin later this year. "We truly appreciate our long-standing and successful relationship with JetBlue," said Rick Deurloo, chief commercial officer at Pratt & Whitney. "We are committed to partnering with the airline on V2500 engine maintenance to optimize fleet performance well into the future." The V2500 engine is backed by an established global network of 18 facilities for maintenance, repair and overhaul (MRO), including nine IAE partner facilities, of which three are managed by Pratt & Whitney and its joint ventures: the Turkish Engine Center in Istanbul, the Shanghai Engine Center in China and the Christchurch Engine Center in New Zealand. Pratt & Whitney's EngineWise service portfolio provides engine operators with a variety of aftermarket services to maximize engine performance and fleet availability. Visit http://www.EngineWise.com for more information About Pratt & Whitney Pratt & Whitney, a unit of Raytheon Technologies (NYSE:RTX) is a world leader in the design, manufacture and service of aircraft and helicopter engines, and auxiliary power units. Raytheon Technologies Corporation is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide. To learn more about RTX, visit its website at www.rtx.com To receive press releases and other news directly, please sign up here. About Raytheon Technologies Raytheon Technologies Corporation is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide. With 195,000 employees and four industry-leading businesses ― Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense ― the company delivers solutions that push the boundaries in avionics, cybersecurity, directed energy, electric propulsion, hypersonics, and quantum physics. The company, formed in 2020 through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses, is headquartered in Waltham, Massachusetts. Media Contact Jenny Dervin O: (860).557.1918 C: 860.308.50645630 Jennifer.Dervin@prattwhitney.com View source version on Pratt & Whitney: https://newsroom.prattwhitney.com/2020-07-30-Pratt-Whitney-and-JetBlue-sign-long-term-service-agreement-for-230-V2500-R-engines#assets_all

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