September 28, 2018 | International, Aerospace

US Air Force awards $9B contract to Boeing-Saab for next training jet

WASHINGTON — A Boeing-Saab partnership has won a $9.2 billion contract to produce the U.S. Air Force's next-generation training jet.

Boeing's award for the T-X trainer program marks the third major victory by the company in about a month, following an $805 million contract to build the Navy's first four MQ-25 unmanned tankers, and a contract worth up to $2.38 billion to manufacture the Air Force's Huey replacement helicopter. The T-X downselect was first reported by Reuters.

As the winners of the competition, Boeing and Swedish aerospace firm Saab are set to capture sales of at least 351 training jets to the U.S. Air Force, with possibly more in the international market. The program promises to keep Boeing's tactical aircraft business strong after the F-15 and F/A-18 Super Hornet lines disappear in the next decade.

"Today's announcement is the culmination of years of unwavering focus by the Boeing and Saab team,” said Leanne Caret, president and CEO of Boeing's defense business. “It is a direct result of our joint investment in developing a system centered on the unique requirements of the U.S. Air Force. We expect T-X to be a franchise program for much of this century.”

The indefinite-delivery/indefinite-quantity contract will allow the Air Force to buy up to 475 aircraft and 120 simulators, the Air Force said in a Sept. 27 statement, although the current plan is to buy 351 T-X aircraft, 46 simulators and associated ground equipment.

The Air Force stated that the T-X program originally was to cost about $19.7 billion, and that Boeing's bid shaved $10 billion off that amount.

“This new aircraft will provide the advanced training capabilities we need to increase the lethality and effectiveness of future Air Force pilots,” Air Force Secretary Heather Wilson said in the news release. “Through competition we will save at least $10 billion on the T-X program.”

Although the contract could be worth up to $9.2 billion, that sum is by no means a sure thing for Boeing.

During a briefing with reporters on Thursday afternoon, Will Roper, the service's acquisition executive, and Lt. Gen. Arnold Bunch, its top uniformed acquisition official, said the $9.2 billion amount would be obligated to Boeing if the service executes all of options that would allow it to buy more aircraft at a quicker pace, purchasing all 475 planes.

Additionally, Boeing assumes the preponderance of the risk with the T-X program, which starts as a fixed-price incentive fee contract, but at the fifth lot will transition to a firm-fixed price structure, Roper and Bunch said.

Boeing and Saab's clean-sheet trainer, designed specifically for the Air Force, beat out Leonardo DRS and a Lockheed Martin-Korea Aerospace Industries partnership. Throughout the competition, the Boeing-Saab jet was seen as the front-runner by analysts like Roman Schweizer of Cowen Washington Research Group, who pointed to Boeing's aggressive bidding strategy and ability to absorb financial losses on programs like the KC-46 tanker aircraft.

The T-X program is the Air Force's last major aircraft procurement opportunity up for grabs for some time, as the service's contracts for its next-generation fighter, tanker and bomber have already been awarded, as have the last remaining new-start helicopter contracts. As such, the decision could potentially trigger a protest with the Government Accountability Office.

But Roper and Bunch pointed to the repeated interaction with industry through the competition, which could shield it from a protest, and lessons learned from previous programs on how to structure a competition.

Roper also defended the service's selection of Boeing's design, which was the only proposed aircraft that was not a modified version of an existing plane.

“We have a very deliberate process to evaluate risk, cost, and technical factors in the program and so its rigorous because we do have to evaluate things that have variances in them. The team looked at that, rolled up cost benefit, technical factors sand risk, to give best value to the government and overall our assessment was Boeing had a proposal that was best value,” Roper said.

Under the initial $813 million award, Boeing will be responsible for delivering five T-X aircraft and seven simulators, with the first simulators arriving at Joint Base San Antonio-Randolph, Texas, in 2023. According to the T-X request for proposals issued in December 2016, the Air Force will then execute contract options for two batches of low-rate production and eight rounds of full-rate production. The contract also includes ground training systems, mission planning and processing systems, support equipment, and spares.

Initial operating capability is planned by the end of fiscal 2024 when the first squadron and its associated simulators are all available for training. Full operational capability is projected for 2034.

Beyond the 351-aircraft program of record, analysts have speculated there could be significant international interest in T-X from countries that plan to fly the F-35 fighter jet or from the U.S. Air Force as it considers buying new aggressor aircraft for air-to-air combat training, making the opportunity potentially even more lucrative.

Although each of the three competing teams offered very different trainers to the Air Force, they were united by their cooperation with international aircraft manufacturers.

Boeing partnered with Saab, which is building the aircraft's aft fuselage and other systems.

The team produced two single-engine, twin-tailed prototypes, which were unveiled at Boeing's St. Louis, Missouri, facility to much fanfare in 2016. Saab promised that, should the partnership emerge victorious, it would build a new plant in the United States for its T-X work, although a location has not been announced.

Leonardo DRS and Lockheed Martin offered modified versions of existent designs, hoping that a mature aircraft would be more palatable as the U.S. Air Force continues to foresee budgetary challenges in its future.

DRS' T-100 is based on the Leonardo M-346 trainer, which is being sold to two F-35 users — Italy and Israel — as well as Singapore. Leonardo initially looked to partner with a big-name U.S. defense prime, first joining with General Dynamics and then, when that teaming agreement fell apart, Raytheon.

Ultimately, Leonardo and Raytheon couldn't agree on pricing for the T-100, leading that partnership to also break up in January 2017.

After Leonardo DRS was tapped to prime the program, the company announced its intention to do structural subassembly, final assembly and check out of the aircraft stateside at Moton Field in Tuskegee, Alabama, where it would build a new $200 million facility.

Lockheed Martin meanwhile joined with Korea Aerospace Industries — a longtime collaborator who manufactured South Korea's version of the F-16 — for a modified version of KAI's T-50. Lockheed said that its T-50A would be built in Greenville, South Carolina, where it also plans to fabricate the F-16 in the future.

https://www.defensenews.com/breaking-news/2018/09/27/reuters-air-force-awards-9b-contract-to-boeing-for-next-training-jet/

On the same subject

March 20, 2019 | International, Aerospace

Turkey targets defense and aerospace exports to counter growing national deficit
By: Burak Ege Bekdil ANKARA, Turkey — The Turkish government is pressuring its defense and aerospace industries to boost exports as part of an aggressive strategy aimed at addressing the country's account deficit and plunging national currency. In an annual ambassadors conference in August, President Recep Tayyip Erdogan urged Turkey's diplomatic missions in more than 150 countries to work harder to win contracts for Turkish manufacturers. The president told Turkish ambassadors to fully utilize diplomacy in marketing homegrown equipment. He has also since repeatedly ordered procurement and industry officials to find new markets to target. “Exports are increasingly important for the sustainability of the [local] industry,” said Murat Ceran, head of the International Cooperation Department at the Presidency of Defence Industries, the government's procurement agency. "Globally speaking, there are three main tiers of exporters: The United States and Russia together account for nearly 60 percent of all exports. The second group consist of exporters like China, France, Germany and the U.K. Turkey, along with Italy, Spain South Korea and Israel, make the third group,” Ceran explained. In recent years, Turkey's defense and aerospace industries reported an average export increase of 8 to 10 percent annually. Only in the past six years, Ceran said, have defense and aerospace exports risen by 61 percent, while Turkey's overall exports rose by 10.5 percent. “We are working to boost exports in a total of 130 countries. We are monitoring over 500 programs in 70 countries,” he said. Turkey's defense and aerospace exports have risen from an annual $1.388 billion in 2013 to $2.035 billion in 2018, according to the Turkish Exporters' Assembly. In comparison, total sales (both foreign and domestic) grew from $5.076 billion in 2013 to $6.693 billion in 2017 (sales growth for 2018 was unavailable via the Turkish Exporters' Assembly by press time). Full article: https://www.defensenews.com/industry/2019/03/13/turkey-targets-defense-and-aerospace-exports-to-counter-growing-national-deficit/
April 1, 2020 | International, Land

Oshkosh wins contract to modernize US Army’s heavy tactical vehicles
By: Jen Judson WASHINGTON — Oshkosh Defense has won a $346 million award to modernize the U.S. Army's fleet of heavy tactical vehicles, according to a March 30 company statement. The company will recapitalize Heavy Expanded Mobility Tactical Trucks (HEMTT) and Palletized Load System (PLS) trucks with updated technology and safety features. Under the contract, Oshkosh will also build new PLS trailers. Upgrading heavy tactical trucks aligns with the service's need to support operations across multiple domains against near-peer adversaries. “Whether they're hauling rocket launchers and missile defense systems, or transporting mission-critical equipment, the HEMTT and the PLS will continue to be an integral part of the U.S. Army and U.S. Army Reserve heavy vehicle fleets for years to come,” said Pat Williams, the company's vice president and general manager of U.S. Army and Marine Corps programs. “As the military pivots its focus to near-peer adversaries, they can be confident that the [family of heavy tactical vehicles] fleet will continue to serve as a key enabler for combat missions.” Oshkosh has already recapitalized more than 13,700 HEMTTs and 3,400 PLS for the U.S. military since 1995. The company supplies tactical vehicles across the services, including heavy, medium and light. Oshkosh has long held lucrative contracts to supply the services and foreign partners with medium tactical vehicles; it had won a contract to provide a new variant of the vehicle but has yet to begin delivering to the Army. Navistar Defense recently sued the Army over its continued purchase of Oshkosh's family of tactical vehicles without competition, but the U.S. Court of Federal Claims ruled in favor of the service and Oshkosh. Oshkosh also provides the Joint Light Tactical Vehicle to the Army, Marine Corps and Air Force. The vehicle reached full operational capability last year after overcoming some design issues. The future is unclear for the Oshkosh-manufactured JLTV as the Army looks to compete for future lots of the vehicle, according to the service's fiscal 2021 five-year budget plan. https://www.defensenews.com/land/2020/03/31/oshkosh-wins-contract-to-modernize-armys-heavy-tactical-vehicles/
March 24, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Contract Awards by US Department of Defense - March 23, 2020
ARMY Southwest Valley Constructors, Albuquerque, New Mexico, was awarded a $524,000,000 modification (P00011) to contract W912PL-19-C-0015 for design build of the Tucson sector barrier wall replacement project. Work will be performed in Tucson, Arizona, with an estimated completion date of Sept. 7, 2021. Fiscal 2020 operations and maintenance, Army funds in the amount of $524,000,000 were obligated at the time of the award. The U.S. Army Corps of Engineers, Phoenix, Arizona, is the contracting activity. BAE Systems Land & Armaments L.P., York, Pennsylvania, was awarded a $339,131,639 modification (P00050) to contract W56HZV-17-C-0001 for 48 vehicle sets of self-propelled howitzer and carrier, ammunition, tracked vehicles and associated support. Work will be performed in York, Pennsylvania, with an estimated completion date of Jan. 31, 2023. Fiscal 2018, 2019 and 2020 other procurement, Army funds in the amount of $339,131,639 were obligated at the time of the award. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity. SGS LLC,* Yukon, Oklahoma, was awarded a $19,940,157 firm-fixed-price contract for design-build construction of a fire rescue center. Bids were solicited via the internet with nine received. Work will be performed in Altus, Oklahoma, with an estimated completion date of April 21, 2022. Fiscal 2020 military construction, Army funds in the amount of $19,940,157 were obligated at the time of the award. U.S. Army Corps of Engineers, Tulsa, Oklahoma, is the contracting activity (W912BV-20-C-0005). PD Systems Inc.,* Springfield, Virginia, was awarded a $14,829,404 firm-fixed-price contract to maintain and sustain equipment assigned to the 63rd Army Reserve Readiness Division. Bids were solicited via the internet with two received. Work locations and funding will be determined with each order, with an estimated completion date of March 29, 2025. The 419th Contracting Support Brigade, Fort McCoy, Wisconsin, is the contracting activity (W911SA-20-D-3000). SAWTST LLC,* Newnan, Georgia, was awarded a $10,842,921 firm-fixed-price contract to maintain and sustain equipment assigned to the 63rd Army Reserve Readiness Division. Bids were solicited via the internet with seven received. Work locations and funding will be determined with each order, with an estimated completion date of March 29, 2025. The 419th Contracting Support Brigade, Fort McCoy, Wisconsin, is the contracting activity (W911SA-20-D-3001). CORRECTION: The $14,143,940 firm-fixed-price contract announced on March 20, 2020, to Stantec Consulting Services Inc., New Orleans, Louisiana (W912P8-20-D-00004), for the design of pump stations and drainage structures was actually awarded today, March 23, 2020. NAVY Pratt and Whitney, a United Technologies Corp. company, Hartford, Connecticut, is awarded a $193,780,323 cost-plus-incentive-fee, fixed-price-incentive-firm contract for the procurement of long lead materials for the production of low rate initial production of propulsion systems (Lot 15 F135) for the Air Force, Navy, Marine Corps, non-Department of Defense (DoD) participants and Foreign Military Sales (FMS) customers. Work will be performed in East Hartford, Connecticut (56%); North Berwick, Maine (13%); Indianapolis, Indiana (10%); Jupiter, Florida (7%); Windsor Locks, Connecticut (5%); Bristol, United Kingdom (4%); Rockford, Illinois (2%); Santa Isabel, Puerto Rico (2%); and Phoenix, Arizona (1%), and is expected to be complete by December 2023. Fiscal 2020 aircraft procurement (Air Force) funds in the amount of $66,446,810; fiscal 2020 aircraft procurement (Navy) funds in the amount of $61,396,328; non-DoD participants funds in the amount of $52,153,031; and FMS funds in the amount of $13,784,154 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract combines purchases for the Air Force ($66,446,810; 34.3%); Navy ($30,788,105; 15.9%); Marine Corps ($30,608,223; 15.8%); non-DoD participants ($52,153,031; 26.9%); and FMS customers ($13,784,154; 7.1%). This contract was not competitively procured pursuant to U.S. Code 2304(c)(1). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-20-C-0011). Sabre Systems Inc., Warrington, Pennsylvania, is awarded $77,733,927 for a cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract. Work will be performed in Patuxent River, Maryland, and is expected to be complete by May 2025. This contract provides digital transformation planning and execution; enterprise alignment; technology exploration; acceleration and integration; digital/information technology (IT) consultation business intelligence; application portfolio management; system integration; enterprise architecture; design and management; web management; Navy Marine Corps Intranet/Next Generation Enterprise Network program management; IT operations; cybersecurity; information assurance; cloud services; maintenance functions; network security; automated data processing support services; digital modeling and virtual environment support; talent change management; data analytics and integration; and business process management and improvement in support for the Naval Air Systems Command Digital Group. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was competitively procured via an electronic request for proposal; three offers were received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-20-D-0072). Lockheed Martin Rotary and Mission Systems, Manassas, Virginia, is awarded a $29,647,813 cost-plus-incentive-fee and cost-only modification to a previously-awarded contract (N00024-18-C-5218) for program management office and engineering services in support of the Surface Ship Undersea Warfare System model AN/SQQ-89(V). Work will be performed in Manassas, Virginia (78%); Syracuse, New York (12%); Lemont Furnace, Pennsylvania (6%); and Liverpool, New York (4%), and is expected to be complete by March 2021. This contract combines purchases for the Navy (90%); and the government of Australia (10%) under the Foreign Military Sales (FMS) program. Fiscal 2016 - 2020 shipbuilding and conversion (Navy); 2018 – 2019 other procurement (Navy); 2020 research, development, test and evaluation (Navy); and FMS Commonwealth of Australia funding in the amount $23,075,308 will be obligated at the time of award. Funds in the amount of $14,387 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Pave-Tech Inc., Vista, California, is awarded $15,189,633 for a firm-fixed-price task order (N62473-20-F-4372) under a multiple award construction contract for repairs to Taxiway Bravo and Taxiway Golf at Naval Air Station, Fallon, Nevada. Work will be performed in Fallon, Nevada, and is expected to be complete by January 2022. The work will provide for the repair and replacement of deteriorated taxiway conditions, shoulders and associated surfaces. This project will also repair damaged 5kV airfield wire, lighting and ancillary parts and devices associated with Taxiways Bravo and Golf. All airfield lighting and electrical infrastructures shall be repaired to a state that complies with current Naval Air Systems Command, Unified Facilities Criteria and Federal Aviation Administration Airfield Regulations. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $15,189,633 are obligated on this award and will not expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-19-D-2440). Lockheed Martin Corp., Rotary and Mission Systems, Liverpool, New York, is awarded a $8,800,000 firm-fixed-price modification to a previously-awarded contract (N00024-20-C-5503) to increase quantities for the full-rate production of the Surface Electronic Warfare Improvement Program and the AN/SLQ-32(V)6, a combat system that provides a full range of undersea warfare functions. Work will be performed in Liverpool, New York (78%); and Lansdale, Pennsylvania (22%), and is expected to be complete by April 2022. Fiscal 2019 shipbuilding and conversion (Navy) funding in the amount of $8,800,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. (Awarded March 20, 2020) KJS Support Services JV LLC,* Fort Worth, Texas, is awarded an $8,594,573 firm-fixed-price, indefinite-delivery/indefinite-quantity modification for the exercise of the first option under the contract for base operating support services at the Naval Air Facility El Centro, California. Work will be performed in El Centro, California, and the option performance period is from April 1, 2020, to March 31, 2021. The work provides for labor, supervision, materials, equipment, tools, parts, supplies and transportation to be used for various base operating support service functions as follows: grounds electronics; airfield facilities; passenger terminal and cargo holding; supply; morale, welfare, and recreation; facility management and investment; janitorial services; pest control services; swimming pools operation and maintenance; grounds maintenance; street sweeping; electrical; gas; wastewater; water; base support vehicles and equipment; and environmental response. After the award of this option, the maximum dollar value including the base period, seven option years and one six-month option will be $74,821,438. No funds will be obligated at time of award of the modification. Fiscal 2020 operations and maintenance (O&M) (Navy); fiscal 2020 Defense Health Program; fiscal 2020 Defense Commissary Agency account; fiscal 2020 family housing (O&M) (Navy); and fiscal 2020 non-appropriated funds in the amount of $5,594,573 for recurring work will be obligated on individual task orders issued during the option period. Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-18-D-5606). AIR FORCE The FlightSafety Services Corp., Centennial, Colorado, has been awarded a not-to-exceed $25,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, single-award contract for a multi-country KC-46 aircrew and maintenance simulator training. The contractor will provide KC-46 aircrew and maintenance training to support the U.S. government and Air Force Security Assistance Training international partners' mission objectives. Work will be performed at Altus Air Force Base, Oklahoma, and is expected to be completed September 2026. This is a sole-source requirement as the FlightSafety Corp., in accordance with 10 U.S. Code 2304 (c)(1), as implemented by Federal Acquisition Regulation 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements. Security and Cooperation funds in the amount of $2,500 are being obligated at the time of award. The Air Force Installation Contracting Agency, 338th Specialized Contracting Squadron, Joint Base San Antonio-Randolph, Texas, is the contracting activity (FA3002-20-D-0005). (Awarded March 19, 2020) *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2122344/source/GovDelivery/

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