July 9, 2020 | International, Aerospace
By: Andrew Hunter and Rhys McCormick
It is rare when technological innovation delivers change that fundamentally reshapes military operations. Helicopters made one of these rare breakthroughs after World War II. The ability to support land operations with vertical lift aircraft fundamentally changed how militaries moved on the battlefield. However, the shape of military operations supported by today's helicopters reflect their capabilities and limitations in terms of speed, range and lift capacity. The Army's Future Vertical Lift efforts are designed to reshape military operations by surpassing the limits imposed by today's systems.
It is less commonly appreciated, however, that future vertical lift, or FVL, aircraft may do just as much to reshape the vertical lift industry as they do military operations. To deliver the capabilities FVL requires affordably — in development, production and sustainment — industry will have to leverage new design and production techniques that deliver critical components with high quality and moderate cost.
Key parts such as rotor blades and rotor heads are big cost drivers. Designing these parts for FVL means redesigning the supply chains and manufacturing processes that produce them. For the smaller companies that make up the lower tiers of the supply chain, this will require them to fundamentally change how their production process works.
We recently completed a study that looked at the implications of the Army's Future Vertical Lift project for the industrial base. What became clear in this review is that there are both opportunities and risks in making the transition to FVL. Substantial investment is required by both the Army and industry, and not everyone in industry will make it. However, this transition also offers significant opportunities to leverage emerging technologies such as additive manufacturing, robotics, artificial intelligence, digital twins and data analytics to achieve the Army's objectives.
The Army's management will be key in ensuring that industry is able to get the most out of new design and production methods, reconfigured supply chains, and a reshaped workforce. The Army's key tools for managing the transition include its ability to provide an addressable market for the industrial base that attracts the necessary FVL investment, and its ability to align industry incentives with the Army's core goals.
The addressable market for industry is not just the Army's future programs, but also the sustainment of legacy platforms. For much of the supply chain, the sustainment market is a huge part of their bottom line. The Army's total vertical lift-addressable market for industry is roughly $8-10 billion annually over the next decade. Although there are some concerns whether that level of spending is feasible while procuring two vertical lift programs simultaneously, previous research by the Center for Strategic and International Studies found that future attack reconnaissance aircraft and future long-range assault aircraft can be accommodated at historical Army modernization funding levels.
Of that $8-10 billion annual vertical lift spending, operating and support costs will provide the largest share, while research and development as well as acquisition total a little more than $2 billion annually.
Given the size of the addressable market, the biggest challenges and risks in transitioning to a new vertical lift industrial base are not among the big prime contractors, but among the smaller suppliers in the industrial base who can't be sure that investing in FVL today will generate the necessary returns tomorrow.
Unlike the bigger prime contractors, these lower-tier suppliers have a much different risk appetite and may struggle with making the upfront investments to build components in new ways. Supporting the supply chain in making this transition is critical to meeting the Army's cost and schedule objectives, which highlights how important incentives are in the Army's approach.
The Army's biggest incentive to industry is to provide predictability by keeping FVL program requirements consistent and clear through the development process so that industry can plan and invest. To date, the Army has done this. It should continue to do so.
Additionally, the Army can incentivize industry to make upfront investments now that deliver cost savings later. Given that sustainment costs account for 68 percent of rotary-wing costs, these investments are critical. Furthermore, it is in the Army's interest to sustain competition throughout the development process as it moves closer to picking winners. Competition is the strongest incentive for industry.
Finally, the Army should be cognizant that incentives will change as FVL moves from development to production, and its management approach will need to evolve.
The Army has the key ingredients in place for FVL if it successfully guides the industrial base through this transition. While that is a tall order, our analysis of the Army's FVL plans suggests they begin on solid ground and are well-informed by the technological and affordability realities. One final factor in FVL's success will be sustaining congressional support by being clear and consistent in communicating and executing the Army's plans.
September 28, 2021 | International, Aerospace, C4ISR, Security
The contract will support additional prototyping and proof of concept for the Terrestrial Layer System-Brigade Combat Team.
August 7, 2023 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence
Programs like hypersonics "are tailor-made for mid-tier and technology-oriented” firms expert Alan Chvotkin said. “I see opportunity there for growth."
November 7, 2019 | International, Aerospace, Naval, Land, C4ISR, Security
ARMY BFBC LLC, Bozeman, Montana, was awarded a $260,473,876 firm-fixed-price contract for the barrier wall on the Barry M. Goldwater Range land in Arizona between Mexico and the U.S. Five bids were solicited with four bids received. Work will be performed in Yuma, Arizona, with an estimated completion date of Nov. 12, 2020. Fiscal 2018 military construction funds in the amount of $260,473,876 were obligated at the time of the award. U.S. Army Corps of Engineers, Portland, Oregon, is the contracting activity (W912PL-20-C-0002). NAVY Lockheed Martin Corp., Fort Worth, Texas, is awarded a $184,581,519 cost-plus-fixed-fee, cost-plus-incentive-fee, fixed-price-incentive-firm, firm-fixed-price modification (P00024) to a previously awarded fixed-price incentive firm contract (N00019-18-C-1048) to establish organic depot level repair capabilities for F-35 systems under the low-rate initial production Lot 11 non-annualized sustainment contract in support of the Air Force, Marine Corps, Navy, and non-Department of Defense (DoD) participants. Systems included are: common components, conventional controls, surfaces and edges, electrical/mechanical activation, firewall shutoff valve, radar, wing flap actuator system, hydraulic power generation system, arresting gear, standby flight display, fuel system, exterior lighting, gun system control unit, filter modules, thermal management system fan, alternating current contactor module and rudder pedals. Work will be performed in Fort Worth, Texas (31%); Melbourne, Florida (19%); Linthicum Heights, Maryland (11%); Torrance, California (7%); Palmdale, California (7%); Grand Rapids, Michigan (6%); Milwaukee, Wisconsin (3%); Los Angeles, California (3%); Helmond, Netherlands (2%); Cheltenham, United Kingdom (2%); Lancashire, United Kingdom (2%); Montville, New Jersey (1%); East Aurora, New York (1%); New Port Richey, Florida (1%), Williston, Vermont (1%); Tucson, Arizona (1%); Irvine, California (1%); and Mansfield, Ohio (1%), and is expected to be completed in March 2023. Fiscal 2020 aircraft procurement (Air Force, Marine Corps, and Navy); and non-DoD participant funds in the amount of $184,581,519 are being 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 ($88,192,135; 47.78%); the Marine Corps ($44,096,063; 23.89%); Navy ($44,096,063; 23.89%); and non-DoD participants ($8,197,258; 4.44%). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Sodexo Management Inc., Gaithersburg, Maryland, is awarded an $117,775,993 firm-fixed-price modification P00021 under previously awarded contract M95494-18-C-0018 for the management and operation of mess halls in support of the Marine Corps Regional Garrison Food Services Program. Work will be performed in Washington, District of Columbia; Indian Head, Maryland; Quantico, Virginia; Norfolk, Virginia; Camp Lejeune, North Carolina; Cherry Point, North Carolina; Bogue, North Carolina; New River, North Carolina; Beaufort, South Carolina; and Parris Island, South Carolina. Fiscal 2020 military personnel (Marine Corps) funding for $19,743,759 will be obligated at the time of award and will expire at the end of the current fiscal year. Marine Corps Installation Command, Arlington, Virginia, is the contracting activity. Sodexo Management Inc., Gaithersburg, Maryland, is awarded an $116,470,442 firm-fixed-price modification P00018 under previously awarded contract M95494-18-C-0016 for the management and operation of mess halls in support of the Marine Corps Regional Garrison Food Services Program. Work will be performed in Camp Pendleton, California; San Diego, California; Twentynine Palms, California; Miramar, California; Yuma, Arizona; and Bridgeport, California. Fiscal 2020 military personnel (Marine Corps) funding for $20,256,240 will be obligated at the time of award and will expire at the end of the current fiscal year. Marine Corps Installation Command, Arlington, Virginia, is the contracting activity. BAE Systems, San Diego, California, is awarded a $33,946,052 firm-fixed-price delivery order N55236-20-F-4001 from multiple-award indefinite-delivery/indefinite-quantity contract N00024-16-D-4416 for a selected restricted availability on USS Mobile Bay (CG 53). This delivery order is for a selected restricted availability to execute depot-level maintenance, alterations, and modifications that will update and improve the ship's military and technical capabilities. Work will be performed in San Diego, California, and is expected to be complete by October 2020. This delivery order includes options, which, if exercised, would bring the cumulative value of this contract to $38,188,485 and be complete by October 2020. Fiscal 2020 operations and maintenance (Navy) funds for $33,946,052 will be obligated at time of award and will expire at the end of the current fiscal year. This delivery order was competitively procured with one request for proposal solicited, and two offers received via all eligible multiple award indefinite-delivery/indefinite-quantity contractors in the San Diego, California, area. The Southwest Regional Maintenance Center, San Diego, California, is the contracting activity. Northrop Grumman Systems Corp., Aerospace Systems, Melbourne, Florida, is awarded a $32,453,129 modification to a previously awarded firm-fixed-price delivery order (N00019-18-F-2334) against a previously issued basic ordering agreement (N00019-15-G-0026). This modification exercises the option for five aerial refueling retrofit kits, installations and technical data in support of the E-2D Advanced Hawkeye aircraft. Work will be performed St. Augustine, Florida (34.7%); Ronkonkoma, New York (28.86%); Melbourne, Florida (5.5%); Dorset, England (3.11%); Irvine, California (2.99%); Columbia, Maryland (1.93%); North Hollywood, California (1.48%); East Aurora, New York (1.19%); and various locations with the continental U.S. (20.24%), and is expected to be completed in March 2021. Fiscal 2019 aircraft procurement (Navy) funds for $32,453,129 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. L3 Applied Technologies Inc., San Leandro, California, is awarded a $21,741,021 cost-plus-fixed-fee and firm-fixed-price contract for a Flash X-Ray machine, a Short-Pulse Gamma Ray machine, and a radiation shielding design and installation and training. The supplies under this contract enhance the Navy's capability to produce and acquire strategic radiation hardened trusted microelectronics. These supplies are in support Naval Surface Warfare Center Crane's Radiation Testing Modernization Program. Work will be performed in San Leandro, California (97%); and Crane, Indiana (3%), and is expected to be complete by December 2022. Fiscal 2019 research, development, test and evaluation (Navy) funding for $21,741,021 will be obligated at time of award and will not 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 will satisfy agency requirements. The Naval Surface Warfare Center, Crane Division, Crane, Indiana, is the contracting activity (N00164-20-C-GM69). AIR FORCE Millennium Health & Fitness Inc., Scottsdale, Arizona, is awarded a $9,200,000 firm-fixed-price contract for Civilian Health Promotion Services (CHPS). This requirement provides health promotion professionals that will develop, manage and promote CHPS to all civilian employees in Air Force Materiel Command and Air Mobility Command. The CHPS program may include depending on location, but is not limited to: individual health counseling, group health education classes, telephonic wellness coaching, cardiac risk blood profile (HDL, LDL, cholesterol ratio and glucose), body composition analysis, online health risk appraisal, wellness challenges and health awareness campaigns. The CHPS is a mobile worksite wellness program. The CHPS health promotion professionals will provide services at 12 staffed Air Force bases (including the CHPS office) and eight unstaffed/visited base locations appropriate for mass screenings and work is expected to be completed by Jan. 31, 2021. This award is the result of a 100% Small Business Set-aside acquisition. Fiscal 2020 operations and maintenance funds in the amount of $1,235,167 are being obligated at the time of award. The Air Force Installation Contracting Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8003-20-C-0004). *Small Business