July 3, 2019 | International, Aerospace
United Technologies Corp.'s Pratt & Whitney unit is chronically late delivering engines for the Pentagon's costliest program, the F-35, raising questions about whether the company is ready for a surge to full-rate production scheduled for next year.
Pratt remains under a previously unreported “Corrective Action Request” from the Defense Contract Management Agency that cites “poor delivery performance” on its current batch of engines for the fighter jet, including for the most complicated version used by the Marine Corps and the U.K. for vertical takeoffs and landings.
The agency's action is likely to be watched not only by the Pentagon and international buyers of the F-35 but also by shareholders and investors assessing United Technologies' planned merger with Raytheon Co., which would fortify the combined company's standing as one of the top U.S. defense contractors. The F-35 engines would be one of the new company's top revenue producers.
United Technologies Corp.'s Pratt & Whitney unit is chronically late delivering engines for the Pentagon's costliest program, the F-35, raising questions about whether the company is ready for a surge to full-rate production scheduled for next year.
Pratt remains under a previously unreported “Corrective Action Request” from the Defense Contract Management Agency that cites “poor delivery performance” on its current batch of engines for the fighter jet, including for the most complicated version used by the Marine Corps and the U.K. for vertical takeoffs and landings.
The agency's action is likely to be watched not only by the Pentagon and international buyers of the F-35 but also by shareholders and investors assessing United Technologies' planned merger with Raytheon Co., which would fortify the combined company's standing as one of the top U.S. defense contractors. The F-35 engines would be one of the new company's top revenue producers.
The company, which is the sole supplier of engines for the fighter built by Lockheed Martin Corp., must demonstrate by year-end that it has delivered on promised improvements to solve the problems that led to the agency's formal request in December, spokesman Mark Woodbury said in a statement outlining the issues.
The $428 billion F-35 program is scheduled for approval next year to enter full-rate production, the most lucrative phase of a weapons program for contractors. The decision is contingent on an assessment during the aircraft's current round of intensive combat testing that it's effective and can be maintained.
Of the $428 billion, as much as $66 billion is to be spent on at least 2,470 engines -- designated the F135 -- for U.S. jets, including $53.4 billion in procurement, according to the Defense Department's latest Selected Acquisition Report on the F-35.
Pentagon budget documents indicate the engine program is valued at about $2 billion annually for Pratt, according to Bloomberg Intelligence analyst Douglas Rothacker.
John Thomas, a spokesman for Pratt, said in an emailed statement that “we take seriously our responsibility to meet F135 production commitments. The corrective action plan submitted earlier this year lays out how we are doing that. Over the past year, we have invested more than $200 million for additional capacity, and currently have over 100 Pratt & Whitney employees deployed to our supplier facilities in support of production obligations.”
Pratt & Whitney President Bob Leduc underscored the engine's revenue potential to analysts June 17 at the Paris Air Show.
United Technologies Corp.'s Pratt & Whitney unit is chronically late delivering engines for the Pentagon's costliest program, the F-35, raising questions about whether the company is ready for a surge to full-rate production scheduled for next year.
Pratt remains under a previously unreported “Corrective Action Request” from the Defense Contract Management Agency that cites “poor delivery performance” on its current batch of engines for the fighter jet, including for the most complicated version used by the Marine Corps and the U.K. for vertical takeoffs and landings.
The agency's action is likely to be watched not only by the Pentagon and international buyers of the F-35 but also by shareholders and investors assessing United Technologies' planned merger with Raytheon Co., which would fortify the combined company's standing as one of the top U.S. defense contractors. The F-35 engines would be one of the new company's top revenue producers.
The company, which is the sole supplier of engines for the fighter built by Lockheed Martin Corp., must demonstrate by year-end that it has delivered on promised improvements to solve the problems that led to the agency's formal request in December, spokesman Mark Woodbury said in a statement outlining the issues.
The $428 billion F-35 program is scheduled for approval next year to enter full-rate production, the most lucrative phase of a weapons program for contractors. The decision is contingent on an assessment during the aircraft's current round of intensive combat testing that it's effective and can be maintained.
Of the $428 billion, as much as $66 billion is to be spent on at least 2,470 engines -- designated the F135 -- for U.S. jets, including $53.4 billion in procurement, according to the Defense Department's latest Selected Acquisition Report on the F-35.
Pentagon budget documents indicate the engine program is valued at about $2 billion annually for Pratt, according to Bloomberg Intelligence analyst Douglas Rothacker.
John Thomas, a spokesman for Pratt, said in an emailed statement that “we take seriously our responsibility to meet F135 production commitments. The corrective action plan submitted earlier this year lays out how we are doing that. Over the past year, we have invested more than $200 million for additional capacity, and currently have over 100 Pratt & Whitney employees deployed to our supplier facilities in support of production obligations.”
Pratt & Whitney President Bob Leduc underscored the engine's revenue potential to analysts June 17 at the Paris Air Show.
“So another way to think about the F135 is a year ago we made about eight engines a month,” he said. “Right now we are between 13 and 14 engines a month. But when you think about the F135, it's 16 engines a month for the next 30 years. There will be over 4,000 of these airplanes when it's all said and done,” including foreign sales.
The primary issues resulting in late engine deliveries “have been related to supply-chain capacity, material shortages” and production issues, according to the contract management agency.
“Engine test failures due to high vibrations and foreign object debris continues to plague” production, the agency said in an internal quarterly assessment for January through March. Deliveries of the Marine Corps model engines “have been consistently late,” it said.
As of early June, Pratt & Whitney was contractually required to deliver 108 engines in the latest production contract, the program's 11th. Of the 90 delivered, 88 were “late by an average of 40 days,” Woodbury said in his statement. The Pentagon is close to finalizing the award of the 12th and largest F-35 contract to date with Lockheed and Pratt.
The current delays add to Pratt & Whitney's spotty track record. Even as deliveries increased to 81 in 2018 from 48 in 2012, 86% of those were delivered late, up from 48% in late 2017, according to an April report from the Government Accountability Office.
Asked whether the contract management agency has confidence Pratt will be ready for a full-production decision, Woodbury said the agency is monitoring milestones in Pratt's corrective action plan and needs to see progress before making that judgment.
The agency's assessment said that in light of Pratt & Whitney's track record it believes the company “will encounter issues keeping up with demand for any future low-rate and full-rate production contract” that increases quantities.
— With assistance by Rick Clough
September 20, 2018 | International, Aerospace
Lee Hudson and Steve Trimble | Aerospace Daily & Defense Report NATIONAL HARBOR, Maryland—The U.S. Air Force still is aiming to release the final solicitation for light attack aircraft in December and continues to discuss the findings of its recent light attack experiment with international ... Full article: http://aviationweek.com/awindefense/usaf-targets-light-attack-final-rfp-december
July 28, 2023 | International, Aerospace
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October 30, 2019 | International, C4ISR
By: Jen Judson ABERDEEN PROVING GROUND, Md. — Critical fielding plans for major elements of the Army's revamped network could fall apart if Congress does not reach a budget deal soon, according to service leaders in charge of network modernization. Should Congress opt to extend the current continuing resolution, which funds the government at fiscal 2019 budget levels, past the Nov. 21 deadline, the Army will struggle to get more capable radios and other elements of its new and improved network to units. While a shorter extension would be less painful, a yearlong continuing resolution, or CR, would derail the efforts. “The whole fielding plan will collapse without a budget,” Army Secretary Ryan McCarthy said during a recent trip to Aberdeen Proving Ground, Maryland, where he was briefed on the service's efforts to deliver a modernized network to the force. “The longer [the CR] goes, I think it can definitely impact the schedule. If it bleeds into the next calendar year, you can look at a day-for-day slip” until a budget is passed, he said, adding that the longer a CR exists, the more likely the Army will have to reformulate its fielding plan because the units originally intended to receive the equipment won't be available to test the new capabilities and train with them. The Army is scheduled to conduct three major test events next year of its network. The 1st Brigade of the 82nd Airborne Division will assess the first capability set of the new Integrated Tactical Network, or ITN, in February. The manpack and leader radio operational test, which is part of the Handheld, Manpack, and Small Form Fit radio program, is scheduled for the third quarter of FY20. Furthermore, at next year's Defender Europe military exercise, the Army will use the Command Post Computing Environment, the Tactical Server Infrastructure and a number of ITN's initial capabilities to assess interoperability with partners and allies. If a CR extends past the first quarter of the fiscal year, the Army will be unable to test radios with a new waveform, known as TSM, as part of its HMS radio program. The current plan is for the 1st Brigade of the 82nd to test the radios in the third quarter of FY20. The TSM waveform is critical to a modernized network because it provides greater capability than what is currently fielded. The radios with the TSM waveform are more secure, can connect a larger number of radios on a single network, can easily tie into coalition partners' communications, and can more effectively push voice and data. If the Army is faced with a yearlong CR, the HMS radio program would be limited to a $3.7 million budget out of $35.6 million requested in FY20. Without the funding, the manpack and leader radio operational test won't happen until FY21, and the Army will likely have to shift to a different unit to conduct the test because of the operational tempo of the 82nd, according to Maj. Gen. Peter Gallagher, who is in charge of the Army's network modernization. Additionally, if testing can't begin until FY21, the Army's full-rate production schedule will slip. “We're confident that our radios will support the waveform, but we're talking about maybe a situation where we couldn't ramp up production to meet the capability set fieldings without essentially ordering stuff in the absence of that operational test, which is not exactly a best practice,” Gallagher said. The Army is planning to field the radios to four units in 2021: the 1st Brigade of the 82nd; the 173rd Airborne Brigade Combat Team; the 3rd Brigade of the 25th Infantry Division; and the 2nd Brigade of the 82nd. A long-term CR would also prevent the procurement of critical ITN communication enhancement equipment that will also be delivered to the four planned brigade combat teams in FY21. Without the equipment, the Army would have to delay communication patches for light infantry formations. A yearlong CR would affect the fielding of the Tactical Server Infrastructure, or TSI, which is also facing a potential FY20 budget cut. The Senate Appropriations Committee's Defense Subcommittee cut its procurement line by more than half, and it's unclear whether that decrement will survive conference committee. The TSI would only have 26 percent of its funding under a yearlong CR, which means the procurement of TSI servers, both small and large versions, will be delayed. A $45.86 million reduction in FY20 would prevent the fielding of 101 large variant servers and 184 small variants, which means two corps, three divisions and 10 brigade combat teams — including units like the 18th Airborne Corps, the 1st Cavalry Division, the 101st Airborne Division, III Corps and 4th Infantry Division — wouldn't get the updated server hardware needed to run the Command Post Computing Environment, Gallagher said during a briefing with McCarthy. And because the servers used to run the Command Post Computing Environment will be delayed, so will the rollout of the CPCE itself. Units like the 10th Mountain Division and the 335th Theater Signal Command have requested accelerated fielding of the CPSE and TSI capability. Currently fielded servers are cumbersome to initialize and are not appropriately protected to deal with emerging cyberthreats. The Tactical Defensive Cyber Operations Infrastructure capability, which protects the servers, will also be delayed. As the Army's first capability set due for fielding in 2021 would be delayed under a CR, its next capability set slated for 2023 would also be pushed back. The Army wouldn't have the funds to conduct experimentation and soldier evaluation because those are considered new start programs with no funding lines in FY19. Those efforts include experiments with low-Earth and medium-Earth orbit constellations, data management, new waveforms, command post mobility, and network management tools. This early research and development is meant to inform preliminary design and further larger-scale experimentation leading up to 2023. https://www.c4isrnet.com/2019/10/29/army-network-fielding-plan-could-collapse-under-extended-continuing-resolution/