US to revamp its command in Japan amid renaissance in defense ties

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  July 12, 2018 | International, Aerospace

  Slovakia selects F-16 over Gripen for new fighter

  By: Aaron Mehta WASHINGTON ― Slovakia has decided to purchase 14 new Lockheed Martin F-16 fighters to replace its Russian made MiG-29 jets. The Slovakian Defence Ministry's announcement Wednesday means the F-16 has beat out the Saab Gripen. In a statement on the ministry's website, Defence Minister Peter Gajdoš said the U.S. jets were selected because they are “state-of-the-art modern machines,” and the ministry statement said the U.S. planes were cheaper according to an analysis done through 2040. However, the ministry did not put a final price tag on the F-16 purchase, but Reuters reported that the dollar figure could be €1.1 billion (U.S. $1.3 billion) for the 14 jets. “We are pleased Slovakia has selected the F-16 Block 70,” Lockheed spokesman John Losinger said. “This partnership will deliver new capabilities to the Slovak Armed Forces and strengthen Slovakia's strategic partnership with NATO and the U.S.” In April, the U.S. State Department OK'd the potential sale of 14 Block 70/72 F-16Vs for Slovakia, indicating the process for getting those planes on contract should be fairly smooth. Slovakia's choice of the U.S. jet over its Swedish counterpart is notable in a regional context, as two of its closest neighbors ― Hungary and the Czech Republic ― operate the Gripen. Poland, however, operates the F-16, as do a number of other NATO nations. Lockheed's sale of the F-16 to Slovakia is the second order since the company made the decision to move its production line from Fort Worth, Texas, to Greenville, South Carolina. The Slovakian sale, coupled with the Bahrain deal cemented last month, will help Lockheed keep production of the F-16 going while its biggest potential customer, India, figures out what it wants out of a future fighter. Lockheed has proposed moving the entire F-16 line to India in exchange for a large order, but India seems to be taking its time, having released a request for information to a handful of defense aviation companies in April. https://www.defensenews.com/digital-show-dailies/riat/2018/07/11/slovakia-selects-f-16-over-gripen-for-new-fighter/

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  July 23, 2020 | International, Aerospace

  Lockheed, Boeing Got Half of $2.3 Billion in Pentagon Virus Cash

  By Anthony Capaccio Lockheed Martin Corp. and Boeing Co. received about half of an initial $2.3 billion in increased, accelerated payments the Pentagon provided contractors to help companies' cash flows after the Covid-19 pandemic erupted in the U.S. The initial infusion was included in $13 billion in regular, periodic progress payments paid to the companies, according to newly released defense figures. Lockheed Martin initially received $685 million while Boeing got $670 million, according to a Pentagon statement to Bloomberg News In a separate statement, Lockheed Martin said that modifications to existing contracts resulted in additional accelerated payments to the company, increasing its total received to $1.1 billion by June 30, “all of which we have flowed down to our supply base.” Lockheed and Boeing are the top two U.S. defense contractors, so they were expected to get the biggest share of the funds. Other companies receiving the accelerated payments include: Raytheon Technologies Corp.: $410 million L3 Harris Technologies Inc.: $74 million The Boeing/Lockheed United Launch Alliance LLC: $70 million Northrop Grumman Corp.: $70 million Another $321 million went to other companies. The companies are benefiting from a policy the Pentagon announced in March, just as the pandemic was building in the U.S., that provided for faster, and bigger, payments to companies. The move was intended to guarantee that critical national security contracts -- including the production of key weapons systems and supplies -- weren't interrupted by companies having problems accessing cash or credit. The extra funding would ensure production lines were able to stay open. The Defense Department's move meant that larger firms could get as much as 90% of their payments for contracts in progress, up from 80% previously. For smaller businesses, which might be more susceptible to virus impacts, the rate rose to 95% from 90%. As the initial funds were identified, the Pentagon “worked with each of the major primes to ensure that they were identifying at risk companies in their supply chain and flowing down payments to those companies, as well as all companies doing work for the prime,” said the statement. The major contractors “have been flowing down payments, in some cases more than the payments received from DOD,” it said. Pentagon officials initially estimated in March about $3 billion would be paid but that number included a potential $700 million payment on a long-standing contract that further analysis deemed was not necessary. In addition to the accelerated progress payments, the Air Force in April released to Boeing $882 million withheld from the company over current deficiencies with its KC-46 military tanker program as part of Covid-19 relief efforts. After the program was announced, Senator Elizabeth Warren, who serves on the Armed Services Committee, expressed concern about its oversight. In particular, the Massachusetts Democrat questioned whether companies might try to divert the increased payments for stock buybacks, dividends or executive pay. Pentagon Undersecretary for Acquisition and Sustainment Ellen Lord in a May 15 letter to Warren said that hasn't been the case. “Companies do not divert payments for incurred costs to share buybacks, dividends or executive salaries because contractors must have already incurred costs before they receive the increased progress payments,” Lord wrote. https://www.bloomberg.com/news/articles/2020-07-22/lockheed-boeing-got-half-of-2-3-billion-in-pentagon-virus-cash

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  June 10, 2020 | International, Aerospace

  This summer could be a make or break moment for US Air Force’s next fighter program

  By: Valerie Insinna WASHINGTON — The U.S. Air Force is on track to finalize a business case for its ambitious next-generation fighter this summer, its top acquisition official said Tuesday, and the results could be a make or break moment for the program. The Air Force wants to radically shift its future fighter program — also known as Next Generation Air Dominance — to a model that the service's acquisition executive Will Roper calls the “Digital Century Series.” This model would use new development techniques like digital engineering, open architecture and advances in software development techniques like DevSecOps to field advanced aircraft more quickly and cheaply. At least, that's the theory. Last September, Roper told Defense News that the program's first order of business would be to present an acquisition strategy that would prove whether the Digital Century Series program is technologically feasible, how it should be structured and whether it would be cheaper than traditional forms of development. Now, the plan is almost ready, Roper said during a Tuesday event held by the Mitchell Institute for Aerospace Studies. “I hope to have the acquisition plan for NGAD rolling into the Digital Century Series this summer,” he said. “I don't want to go more specific than that and timeline and drumbeat for the team, because I have given them an unprecedented task.” The Digital Century Series is much different than the Air Force's initial sixth-generation fighter project, known as Penetrating Counter Air, which the service wanted to field the early 2030s. That jet would be part of a networked family of systems that include drones, sensors and other platforms formed after a decade of prototyping efforts. In contrast, the Digital Century Series model would require multiple defense contractors to develop new fighter jets in a matter of years using whatever technological advances have recently emerged. The Air Force would then downselect to a single vendor, buy a small number of aircraft and restart the process — allowing for companies to constantly be designing and producing planes. The entire process, Roper said, could take as little as five years. In October, Col. Dale White was named head of the program executive office for advanced aircraft, which manages the NGAD portfolio of systems and oversees the Digital Century Series acquisition plan. That program office will become PEO Fighters and Advanced Aircraft at the end of June, with White having been selected for promotion to brigadier general. The Air Force has asked for $1 billion for the NGAD program in fiscal 2021. It received $905 million for the program the previous year. However, it's likely the Air Force will need to greatly increase that sum in future budgets. Roper has projected that aircraft development under a Digital Century Series model could be more expensive than legacy methods due to having multiple companies under contract and requiring them to design and prototype aircraft very quickly. However, he also believes sustainment and modernization costs will be far lower. If that theory can be proved out in the acquisition strategy, Congress might more likely agree to fund an unconventional, experimental program. “How long we keep the aircraft is one of the variables that they are weighing [as part of the business case]. How many years make sense? It's clearly not two, three, four, five, but we don't want it to be 30 either. So they're looking at that,” Roper said Tuesday. “They're looking at the amount of modernization that would be expected — what we would expect that to cost and if it gets easier with digital tools. And then summing it all up to see whether the cost of having a lethal airplane per year is less than for the Digital Century Series model than for the traditional." “If it is, that is going to really help us, I hope, because we'll show that data and argue that it is not just better from a ‘competing with China and lethality' standpoint. It's just better from a business standpoint,” Roper said. “If it breaks even or is less [than traditional methods], I will be exceptionally happy. If it's more expensive — and I hope not exceptionally more — then we're going to have to argue” on behalf of the program. https://www.defensenews.com/air/2020/06/09/this-summer-could-be-a-make-or-break-moment-for-the-air-forces-next-fighter-program/