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General Electric [GE] and Advanced Turbine Engine Company (ATEC) touted the capabilities of their respective engines in the quest by the U.S. Army to find new engines for the AH-64 Apache and UH-60 Black Hawk fleets under the Improved Turbine Engine Program (ITEP).ATEC... http://www.defensedaily.com/ge-atec-running-hot-us-army-helicopter-engine-upgrades/

ARMY Absolute Business Solutions Inc., Herndon, Virginia (W911QY-19-D-0001); Data Systems Analysts Inc., Feasterville Trevose, Pennsylvania (W911QY-19-D-0002); DCS Corp., Alexandria, Virginia (W911QY-19-D-0003); HII Mission Driven Innovative Solutions Inc., Huntsville, Alabama (W911QY-19-D-0004); Integrity Consulting Engineering and Security Solutions,* Purcellville, Virginia (W911QY-19-D-0005); Interactive Process Technology LLC, Billerica, Massachusetts (W911QY-19-D-0006); Joint Research and Development Inc.,* Stafford, Virginia (W911QY-19-D-0007); Kalman and Company Inc., Virginia Beach, Virginia (W911QY-19-D-0008); MLT Systems LLC,* Stafford, Virginia (W911QY-19-D-0009); Mustang Gray LLC,* Stafford, Virginia (W911QY-19-D-0010); Patricio Enterprises Inc., Stafford, Virginia (W911QY-19-D-0011); and Whitney, Bradley & Brown Inc., Reston, Virginia (W911QY-19-D-0012), will share in a $249,000,000 firm-fixed-price contract for providing resources in support of the Joint Program Executive Office for Chemical and Biological Defense. Bids were solicited via the internet with 21 received. Work locations and funding will be determined with each order, with an estimated completion date of Oct. 14, 2023. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. NAVY Dyncorp International LLC, Fort Worth, Texas, is awarded a $152,247,409 firm-fixed-price, cost reimbursable, indefinite-delivery/indefinite-quantity contract. This contract provides for logistics support services and material for the organizational and depot level maintenance of approximately 118 TH-57 aircraft. Work will be performed in Milton, Florida, and is expected to be completed in November 2022. No funds will be obligated at time of award. Funds will be obligated on individual task orders as they are issued. This contract was competitively procured via an electronic request for proposal, with two offers received. The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity (N61340-19-D-0905). WR Systems Ltd., Norfolk, Virginia, is awarded a $49,999,996 indefinite-delivery/indefinite-quantity, performance-based contract with provisions for cost-plus-fixed-fee and firm-fixed-price task orders. The contract is for the procurement of positioning, navigation and timing engineering and in-service engineering agency support services. The services required include design development, systems integration, acquisition and prototype engineering, technical documentation, and integrated logistic support in order to support the Integrated Product Team. Work will be performed in Norfolk, Virginia, and is expected to be completed by October 2020. Fiscal 2018 other procurement (Navy) funds in the amount of $1,200 are obligated at the time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured because this is a sole-source acquisition pursuant to the authority of 10 U.S. Code 2304(c)(1), one source or limited sources (Federal Acquisition Regulation 6.302-1(a)(2)(iii)(B)). Space and Naval Warfare Systems Center Atlantic, Charleston, South Carolina, is the contracting activity (N6523619D8001). The Boeing Co., St. Louis, Missouri, is awarded $24,400,000 for cost plus-incentive-fee delivery order N0001918F2046 against a previously issued basic ordering agreement (N00019-16-G-0001). This order provides for Airborne Electronic Attack (AEA) System enhancements to the ALQ-218 receiver system hardware and communication lines between assemblies to accommodate future planned functional growth and enhancements. Thirteen sets of WRA-7, WRA-8, WRA-9, and 18 AEA gun bay pallets will be modified and the associated technical directives will be written in support of the Navy and the government of Australia. Work will be performed in Baltimore, Maryland (31 percent); St. Louis, Missouri (23 percent); St. Augustine, Florida (15 percent); Bethpage, New York (11 percent); Patuxent River, Maryland (10 percent); and China Lake, California (10 percent), and is expected to be completed in December 2020. Fiscal 2018 aircraft procurement (Navy); and foreign military sales funds in the amount of $24,400,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This delivery order combines purchases for the Navy ($23,157,457; 95 percent); and the government of Australia ($1,242,543; 5 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Electric Boat Corp., Groton, Connecticut, is awarded a $14,718,840 cost-plus-fixed-fee contract for the Next Generation Submarine Science and Technology Research. This contract contains options, which if exercised, would increase the contract value to $39,661,906. Work will be performed in Groton, Connecticut, and work is expected to be completed by Oct. 14, 2019. If options are exercised, work will continue through October 2023. Fiscal 2018 research, development, test and evaluation (Navy) funds in the amount $10,000 will be obligated at the time of award. No funds will expire at the end of the current fiscal year. This contract was competitively procured under N00014-18-S-B001 “Long Range Broad Agency Announcement (BAA) for Navy and Marine Corps Science and Technology.” Proposals will be received throughout the year under the long range BAA, therefore, the number of proposals received in response to the solicitation is unknown. The Office of Naval Research, Arlington, Virginia, is the contracting activity (N00014-19-C-1002). DEFENSE INFORMATION SYSTEMS AGENCY Southwind Construction Services LLC, Edmond, Oklahoma, was awarded a competitive firm-fixed-price contract for the installation of raised floor and high density cooling and power upgrade at the Oklahoma City, Oklahoma data center. The face value of this action is $9,177,535 funded by fiscal 2018 and 2019 capital funds. Performance will be at Data Center Oklahoma City, Tinker Air Force Base, Oklahoma. Proposals were solicited via the Federal Business Opportunity website and three proposals were received. The period of performance is 365 days after contract award (estimated period of performance is Oct. 22, 2018 - Oct. 21, 2019). The Defense Information Technology Contracting Organization, Scott AFB, Illinois, is the contracting activity (HC102819C0001). *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1662895/source/GovDelivery/

CLEVELAND, OH and BELLEVUE, WA., October 10, 2018 /PRNewswire/GlobeNewswire -- TransDigm Group Incorporated (NYSE: TDG) and Esterline Technologies Corporation (NYSE:ESL) announced today that they have entered into a definitive agreement under which TransDigm will purchase all of the outstanding shares of common stock of Esterline for $122.50 per share in cash, which represents a premium of 38% to Esterline's closing price on October 9, 2018, or a total transaction value of approximately $4.0 billion including the assumption of debt. The transaction has been approved by the Boards of Directors of both companies. TransDigm expects the acquisition to be financed primarily through cash on hand and the incurrence of new term loans, and currently anticipates the acquisition to be modestly accretive to TransDigm's adjusted earnings per share within the first year of ownership. The acquisition of Esterline expands TransDigm's platform of proprietary and sole source content for the aerospace and defense industries, including significant aftermarket exposure. Headquartered in Bellevue, Washington, Esterline is an industry leader in specialized manufacturing for these sectors with anticipated fiscal year 2018 revenue of approximately $2.0 billion. The company consists of 28 business units organized across eight platforms to deliver specialty aerospace, defense and industrial products. The company employs over 12,500 employees in more than 50 operating locations throughout the world. Esterline has attractive platform positions in both the OEM and aftermarket and has substantial content on many important commercial aircraft variants, many regional and business jet aircraft and major defense platforms. “We are pleased to have reached agreement to acquire a collection of businesses that fit well with our focused and consistent strategy,” stated W. Nicholas Howley, TransDigm's Executive Chairman. “Esterline's core aerospace and defense business consists of primarily proprietary, sole source products with significant and growing aftermarket exposure. We view this as highly complementary to our existing business. We are confident that the combination of Esterline's leading positions and our proven track record of driving performance will enable us to deliver the private equity-like returns our investors have come to expect from this investment." Kevin Stein, TransDigm's President and Chief Executive Officer stated, “We are excited to acquire Esterline's wide range of complementary products and see a path to create significant value for TransDigm shareholders, customers and stakeholders. Upon completion of the transaction, Bob Henderson, TransDigm's current Vice-Chairman, will oversee the integration and operations of Esterline. Mr. Henderson has been a key member of TransDigm's management team for close to 25 years and has overseen the integration of numerous acquisitions during this period, including our recent acquisition of Kirkhill from Esterline.” “Our combination with TransDigm delivers a compelling value for our shareholders,” said Curtis Reusser, Chairman, President and Chief Executive Officer of Esterline. “I am pleased with the outcome of our thoughtful strategic review process, and we believe it is the best result for all Esterline stakeholders. I am very proud of the commitment and focus of our employees to serving the needs of our customers, and I am confident the combined companies will be well positioned to succeed in the global market we serve.” The acquisition will be financed through a combination of existing cash on hand of approximately $2 billion and the incurrence of new term loans. TransDigm has obtained commitments for the full amount of financing required for the transaction. Immediately upon closing, the combined company will maintain the financial flexibility to meet any anticipated operating, acquisition, and other opportunities that may arise though a combination of cash on hand, undrawn revolver, and under certain circumstances, additional availability under its credit agreement. The transaction is subject to customary closing conditions, including Esterline stockholder approval and the receipt of required regulatory approvals. The companies expect to complete the transaction in the second half of calendar 2019. Advisors Morgan Stanley & Co. LLC acted as financial advisor to TransDigm. Wachtell, Lipton, Rosen & Katz and Baker & Hostetler LLP acted as TransDigm's lead legal counsel. Goldman Sachs & Co. LLC acted as financial advisor to Esterline and Evercore Group L.L.C. served as advisor to Esterline's Board of Directors. Skadden, Arps, Slate, Meagher & Flom served as legal counsel to Esterline. Conference Call TransDigm will hold a conference call to discuss this announcement beginning at 10:45 a.m. ET Wednesday, October 10. To join the call, dial (888) 558-9538 and enter the passcode 5278399. International callers should dial (760) 666-3183 and use the same passcode. A slideshow accompanying the presentation will be posted to http://www.transdigm.com prior to the call. A telephone replay will be available for one week by dialing (855) 859-2056 and entering the pass code 5278399. International callers should dial (404) 537-3406 and use the same passcode. About TransDigm Group TransDigm Group Incorporated, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, specialized cockpit displays, aircraft audio systems, specialized lavatory components, seatbelts and safety restraints, engineered interior surfaces and related components, lighting and control technology, military personnel parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems. About Esterline Esterline Corporation is a leading worldwide supplier to the aerospace and defense industry specializing in three core business segments: Advanced Materials; Avionics & Controls; and Sensors & Systems. Operations within the Advanced Materials segment focus on technologies including high-temperature-resistant materials and components used for a wide range of military and commercial aerospace purposes, and combustible ordinance and electronic warfare countermeasure products. Operations within the Avionics & Controls segment focus on technology interface systems for commercial and military aircraft and similar devices for land- and sea-based military vehicles, integrated cockpit systems, display technologies for avionics, training and simulation markets, secure communications systems, specialized medical equipment, and other high-end industrial applications. The Sensors & Systems segment includes operations that produce high-precision temperature and pressure sensors, specialized harsh-environment connectors, electrical power distribution equipment, and other related systems principally for aerospace and defense customers. Forward-Looking Statements Statements in this press release which are not historic facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to expectations of Esterline's future performance, profitability, growth and earnings; expectations of TransDigm's earnings per share and the financial impact of the proposed transaction; the financing of the proposed transaction; and the timing of the proposed transaction. All statements other than statements of historical fact that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements, including, in particular, statements about our plans, objectives, strategies and prospects regarding, among other things, the acquired business. We have identified some of these forward-looking statements with words like "believe," "may," "will," "should," "expect," "intend," "plan," predict," "anticipate," "estimate" or "continue" and other words and terms of similar meaning. All forward-looking statements involve risks and uncertainties which could affect TransDigm's actual results and could cause its actual results or the benefits of the proposed transaction to differ materially from those expressed in any forward-looking statements made by, or on behalf of TransDigm. These risks and uncertainties include, but are not limited to, closing conditions to the proposed transaction may not be achieved, the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement, the effect of the announcement or pendency of the proposed transaction on the TransDigm's and Esterline's business relationships, operating results and business generally, risks related to diverting management's attention from ongoing business operations, the outcome of any legal proceedings that may be instituted related to the Merger Agreement or the proposed transaction, unexpected costs, charges or expenses resulting from the proposed transaction, Esterline's actual financial results for the year ended September 28, 2018 may differ from expected results, TransDigm may have difficulty obtaining required approvals, TransDigm may have difficulty implementing its strategic value drivers, and TransDigm may be impacted by the effects of general economic and industry conditions. Except as required by law, TransDigm undertakes no obligation to revise or update the forward-looking information contained in this press release. Additional Information and Where to Find It This communication is being made in respect of the proposed transaction involving Transdigm and Esterline. In connection with the proposed transaction, Esterline intends to file relevant materials with the Securities and Exchange Commission (the “SEC”), including a preliminary proxy statement on Schedule 14A. Promptly after filing its definitive proxy statement with the SEC, Esterline will mail the definitive proxy statement and a proxy card to each stockholder of Esterline entitled to vote at the stockholder meeting relating to the proposed transaction. This communication is not a substitute for the proxy statement or any other document that Esterline may file with the SEC or send to its stockholders in connection with the proposed transaction. BEFORE MAKING ANY VOTING DECISION, STOCKHOLDERS OF ESTERLINE ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE PROPOSED TRANSACTION THAT ESTERLINE WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT ESTERLINE AND THE PROPOSED TRANSACTION. The definitive proxy statement, the preliminary proxy statement and other relevant materials in connection with the proposed transaction (when they become available), and any other documents filed by Esterline with the SEC, may be obtained free of charge at the SEC's website (http://www.sec.gov) or at Esterline's website (http://www.esterline.com/) or by contacting Esterline's Investor Relations at 500 108th Avenue NE, Suite 1500, Bellevue, Washington 98004, or by calling (425) 453-9400. Participants in the Solicitation Esterline and TransDigm and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Esterline's stockholders with respect to the proposed transaction. Information about Esterline's directors and executive officers and their ownership of Esterline's common stock is set forth in its proxy statement for its 2018 Annual Meeting of Stockholders which was filed with the SEC on December 27, 2017, and its Annual Report on Form 10-K for the fiscal year ended September 29, 2017, which was filed with the SEC on November 21, 2017, and the Amendment No. 1 on Form 10-K/A, which was filed with the SEC on March 30, 2018. Information about TransDigm's directors and executive officers is set forth in its proxy statement for its 2018 Annual Meeting of Stockholders and its most recent Annual Report on Form 10-K. These documents may be obtained for free at the SEC's website at www.sec.gov. Additional information regarding the potential participants, and their direct or indirect interests in the proposed transaction, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with SEC in connection with the proposed transaction. Contact: TransDigm Esterline Liza Sabol John Hobbs Director of Investor Relations Sr. Director, Investor Relations (216) 706-2945 (425) 453-9400 ir@transdigm.com https://www.esterline.com/Newsnbsp;PressCenter/EntryId/6232/TransDigm-to-Acquire-Esterline-Technologies-in-4-Billion-All-Cash-Transaction.aspx

Alexis Pfefferlé Lancement des rencontres BtoB Jeudi 11 octobre 2018, Lausanne. Première journée incontournable pour l'industrie suisse de la défense. A l'initiative du Groupe romand pour le matériel de Défense et de Sécurité (GRPM) , de Swissmem, l'association faîtière des PME et des grandes entreprises de l'industrie suisse des machines, des équipements électriques et des métaux (industrie MEM) et du Bureau des affaires compensatoires à Berne, se tenait la première journée BtoB (Business to Business) dans le cadre de l'appel d'offre du programme Air2030. Pour rappel, le programme Air2030 est en substance le projet d'acquisition par l'armée suisse de nouveaux jets de combat et d'un nouveau système de défense sol-air de longue portée sous la forme d'un arrêté de planification pour un coût maximal de 8 milliards de francs. Au contraire de la votation de 2014 sur le Gripen, le peuple ne se prononcera cette fois pas sur le modèle d'avion mais uniquement sur l'enveloppe budgétaire souhaitée par le Département de Guy Parmelin. Suite à l'appel d'offre lancée par Armasuisse en juillet 2017 pour la partie avions de combats, cinq constructeurs sont entrés dans la course. Saab et son Gripen E, Dassault et son Rafale, Boeing et son FA 18 Super Hornet, Lookheed Martin et son F-35A et Airbus avec l'Eurofighter. Particularité de cet appel d'offre, l'achat de nouveaux avions de combat devra faire l'objet d'une compensation industrielle à 100%, à savoir que le pays vendeur devra compenser l'achat de la Suisse par des achats d'un montant équivalent auprès de l'industrie suisse. Dans le jargon, on appelle cela les affaires compensatoires ou l'offset industriel. C'est ainsi que dans le cadre de l'acquisition des nouveaux avions de combat, les cinq constructeurs sont appelés à rencontrer les sociétés suisses avec lesquelles ils pourront potentiellement conclure des contrats. L'enjeu est de taille, ces affaires compensatoires représentent près de CHF 8mia pour l'industrie suisse (dont 30% espérés en Romandie) et des possibilités très intéressantes de partenariats à long terme. Par le biais de ce blog, j'ai décidé de partager avec vous quelques détails de ces journées incontournables pour l'industrie suisse de la défense. SAAB en première ligne Retour donc à Lausanne le 11 octobre, à 0800 comme disent les militaires. L'ambiance est sobre, voire médicale, bien loin de l'image d'Épinal de la foire aux canons avec hôtesses slaves en pantalon treillis et kalachnikov. Les femmes, j'en compte 2 sur 200, sont en tailleur et ça parle beaucoup suisse-allemand, quand bien même la même réunion s'est tenue la veille à Berne. Après une introduction par le Président du Groupe romand pour le matériel de Défense et de Sécurité, c'est au Président du Switzerland Business Unit de SAAB d'entrer en scène. Le discours est rodé, court, impactant. Le Gripen E, version monoplace, est un avion de dernière génération, économique et facile à manœuvrer et à manutentionner. Il peut notamment être ravitaillé en essence et munitions en 10 minutes par une équipe réduite et décoller sur une piste de 800 mètres. Pour une présentation en Suisse, l'exemple est parfait. On en vient ensuite directement à la question des affaires compensatoires. On est là pour faire des affaires, ce n'est pas aujourd'hui que l'on vend l'avion. Sur ce point, le discours est stratégique avec deux concepts martelés tout au long de la présentation, implantation à long terme et partenariats plutôt qu'achats. Et SAAB soutient le discours par du concret, 25% des sociétés suisses présentes dans la salle sont déjà des fournisseurs de SAAB, et ce malgré l'échec de 2014, et un autre 20% est en cours de négociation. De plus, SAAB possède des participations dans au moins quatre sociétés suisses actives dans l'industrie de défense et comme SAAB produit, en plus de ses avions, des voitures, des tanks, des bateaux et même des sous-marins, le potentiel de collaboration est énorme. Sur l'aspect partenariat, les promesses sont alléchantes. Les sociétés suisses qui participeront au développement du Gripen E, si celui-ci était retenu, verront leurs technologies et produits intégrés au programme Gripen E et donc vendus aux autres pays intéressés par l'avion. Avec 60 avions en commande pour la Suède, 36 pour le Brésil et trois appels d'offres en cours en au Royaume-Uni, en Finlande et en Bulgarie, le “contrat suisse” pourrait faire des petits. Fin de la présentation, nous sortons boire un café ou un jus de pommes. Je vois s'activer les représentants des sociétés suisses qui, dans quelques minutes, débuteront leur BtoB avec l'avionneur. Quinze minutes par société en tête à tête pour conclure, dans une sorte de speed-dating technique en col blanc. GRIPEN E, points forts et points faibles Pour conclure sur le Gripen E, j'ai retenu quelques points forts/faibles au terme de cette première présentation. Points forts Forte implantation suisse de SAAB, tant en matière industrielle qu'en terme de lobbyisme ; Fort potentiel de partenariats en matière industrielle, militaire et civile ; Investissements historiques en Suisse et accroissement souhaité sur le long terme ; Transparence accrue dans les pays du Nord, notamment en matière de défense. Points faibles Faible poids de la Suède au sein de l'Europe dans une perspective géopolitique ; Marché de la défense à l'export plus petit et plus faible que d'autres concurrents, notamment dans la perspective d'affaires compensatoires dans d'autres domaines que l'aviation. Et si le Souverain disait non ? Avant de quitter les lieux, voyant toutes ces personnes peaufiner leur speech et les organisateurs régler les derniers détails, me vient à l'esprit cette réflexion : Et si tout ça n'aboutissait à rien ? En effet, ces rencontres BtoB, fruits de plusieurs mois de travail acharné des organisateurs et des industriels présents précèdent l'analyse des offres par l'armée et plus encore, le probable référendum. Au bout du compte, il se pourrait bien que tout ce temps et cet argent investis ne servent à rien en cas de nouvel échec devant le peuple. Ce qui m'amène à la réflexion suivante, pourquoi diable le Département fédéral de la défense et des sports n'a-t-il pas pressé pour que l'on vote avant l'appel d'offre ? Venir en 2020 devant le peuple avec l'argument que tout est déjà réglé et qu'il ne manque que la signature du souverain, c'est prendre un énorme risque. Espérons qu'il soit calculé. ABE Bon baiser de Suisse. https://blogs.letemps.ch/alexis-pfefferle/2018/10/15/air2030-a-la-rencontre-de-saab-et-du-gripen-e/

DEFENSE INFORMATION SYSTEMS AGENCY Iridium Satellite LLC, Tempe, Arizona, was awarded a non-competitive, firm-fixed-price $44,000,000 contract modification (P00008) for the extension of services on the current airtime contract (HC104714C4000) in accordance with Federal Acquisition Regulation 52.217-8. Fiscal 2019 defense working capital funds will be used. Performance will be at the contractor's facility. The period of performance for the option period is Oct. 22, 2018, through April 21, 2019. The Defense Information Technology Contracting Organization, Scott AFB, Illinois, is the contracting activity. DEFENSE LOGISTICS AGENCY Creighton AB Inc., Reidsville, North Carolina, has been awarded a maximum $35,000,000 fixed-price contract for Air Force lightweight jackets. This was a competitive acquisition with two responses received. This is a one-year base contract with four one-year option periods. Maximum dollar amount is for the life of the contract. Locations of performance are New York and North Carolina, with an Oct. 11, 2023, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1104). Simmonds Precision Products Inc., Vergennes, Vermont, has been awarded an $11,024,500 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for electro-me actuators. This is a five-year base contract with four one-year option periods. This was a competitive acquisition with two responses received. Location of performance is Vermont, with an Oct. 15, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 Army working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Redstone Arsenal, Alabama (SPRRA1-19-D-0004). Transaero Inc., Melville, New York, has been awarded a $9,500,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for assembly clutches. This is a five-year base contract with four one-year options periods. This was a competitive acquisition with two responses received. Location of performance is New York, with a Nov. 30, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 Army working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Redstone Arsenal, Alabama (SPRRA1-19-D-0002). ARMY Medvolt LLC,* Colorado Springs, Colorado, was awarded a $19,978,985 firm-fixed-price contract for upgrading the chilled water line system at the Cheyenne Mountain Air Force Station. Bids were solicited via the internet with one received. Work will be performed in Cheyenne Mountain Air Force Station, Colorado, with an estimated completion date of Oct. 15, 2020. Fiscal 2019 operations and maintenance (Army) funds in the amount of $19,978,985 were obligated at the time of the award. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-19-C-0001). AIR FORCE Rockwell Collins, Richardson, Texas, has been awarded a $12,010,975 definitization (P000013) to previously undefinitized contract FA8204-18-C-0010 (P00005) to implement Security Classification Guide changes. Work will be performed at Richardson, Texas, and is expected to be completed by Dec. 3, 2020. Fiscal 2018, research, development, test and evaluation funds in the amount of $818,227 are being obligated at the time of award. Air Force Nuclear Weapon Center, Hill Air Force Base, Utah, is the contracting activity. NAVY Complete Parachute Solutions, Deland, Florida, is awarded a $9,270,000 modification under previously awarded firm-fixed-price contract (M00264-18-C-0007) for the Multi-Mission Parachute Course. The Multi-Mission Parachute Course provides training and technical support for all Military Free-Fall training to ensure compliance with all Federal Aviation Administration Regulations and Marine Corps Orders to safely meet the Marine Corps Training Input requirements. This contract includes four one-year option periods which, if exercised, could bring the cumulative value of this contract to $42,763,854. Work will be performed in Coolidge, Arizona, and is expected to be completed Sept. 27, 2019. If all options are exercised, work will continue through Sept. 27, 2022. Fiscal 2019 operations and maintenance (Marine Corps) funds in the amount of $9,270,000 will be obligated at the time of contract modification award and will expire at the end of the current fiscal year. The original contract was competitively solicited and competitively procured via solicitation on the Federal Business Opportunity website, with one proposal received. The Marine Corps Installation National Capital Region-Regional Contracting Office, Quantico, Virginia, is the contracting activity. FlightSafety Services Corp., Centennial, Colorado, is awarded an $8,354,866 modification (P00004) under a previously awarded firm-fixed-price contract (N6134018C0019) for aircrew training services in support of the TH-57B/C community, including instruction, operation, and curriculum support. Work will be performed at the Naval Air Station, Whiting Field, Florida, and is expected to be completed in October 2019. No funds are being obligated at time of award. The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity. Huntington Ingalls Inc., Newport News, Virginia, is awarded a $7,031,737 cost-plus-fixed-fee modification to previously awarded contract (N00024-17-C-2103) to exercise an option for the accomplishment of planning and design yard functions for standard Navy valves of nuclear-powered submarines and aircraft carriers. Work will be performed in Newport News, Virginia, and is expected to be completed by September 2019. Fiscal 2019 operations and maintenance (Navy) funding in the amount of $600,000 will be obligated at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1660999/source/GovDelivery/

By: Jill Aitoro If you ask Chris Kubasik, CEO of L3 Technologies, the company's pending merger with Harris Corp. should not come as a surprise to anyone. Such a move made sense on paper for years, even if the timing was never quite right. Now it is: Both companies are on an upswing, and both companies are led by individuals with an inclination to get it done. The result will be a deal — the largest defense merger in history, if you look at market capitalization — to create the seventh largest defense prime in the world. Defense News spoke to Kubasik and Bill Brown, the CEO of Harris, to find out more about the newly rechristened L3 Harris Technologies. Chris, you called this an acquisition that many felt made sense. So what were the challenges to making it happen, and why is now the perfect time? Chris Kubasik: I think in reality, people thought for years that this combination made sense. It was due to Bill and I working hard that we actually got it done. I think that now is the perfect time because of the customer's needs and demands for innovation and solution. Like I said, with the upswing in both companies, and both companies being strong, I think that gives us the opportunity to put this together, generate the cash and the synergies and position us for long-term value creation for our shareholders. The challenges of all these acquisitions [are so often] culture and leadership. Here, the cultures are aligned. Bill and I are completely aligned. We've known each other for years. We have a clear understanding of roles and responsibilities. We're going to jointly chair the integration committee to make sure we get the best of the best — best people, best processes, best system. I'm sure I've never been more excited in my career than I am today, so it's going to be a lot of fun. The stakeholders are all going to benefit. Bill, how much was the 2015 acquisition of Exelis a building block toward this deal? Not necessarily a merger with L3 specifically, but really big merger that would really transform the company? Did you see this coming? Bill Brown: I've been here for seven years, so we really started early on in developing a culture of operational excellence. I think that has been pretty well embedded within the company. We've made some good progress here. We've leveraged a lot of those tools, effectively integrating Exelis. We reached the cost savings targets we thought we would deliver and we delivered it a year early. So I think we built a little bit of a muscle on how to do an integration. I think this is a great potential combination for us. It does position us well within the defense industrial based hierarchy. We'll generate a lot of savings. But more importantly, the portfolio capabilities is going to allow us to do different things, to provide different capabilities to the war fighter and different things that are clearly laid out in the National Defense Strategy. So as I look at this, it's the right transaction. It's the right time. It's the right environment to do this. A lot of this comes down to the leaders of the organization, and Chris and I [are] completely aligned in what to do and how to create value. So much of this also involves combining and integrating in a smart and efficient way, so should we expect any more divestitures? I know L3 just did a couple recently. Any more to come? Brown: I think if you look at what L3 has done recently, and what we've done over the last five or six years, we both have taken a critical eye to the business portfolio we had. If there's assets we think that are better owned by somebody other than [ourselves], we take a dispassionate view of that. And we transition those assets to a different owner. I think Chris and I will take a look at that going forward. I think there will be [divestitures], given the diversity of the business mix we'll have together. It does create the optionality for additional portfolio shaping. Nothing to mention today, but something we'll be taking a close look at over the coming months and years. Okay, so the couple of years before the transition, in terms of leadership — should I figure that those two years are going to be spent really establishing the integrated company? Kubasik: Absolutely. The top two focuses of Bill and I and the team will be the integration, and continuing to execute on our existing programs and commitments. That is first and foremost. We're going to generate a lot of cash. It's going to take several hundred million dollars of investments to integrate these companies. Then the rest of the cash we're going to maintain a competitive dividend, consistent with what we've done. We're very similar in that regard. In the first year, we're going to use the excess cash to repurchase shares. So the likelihood of acquisition from those first two years are very low. As Bill said, we'll look at the portfolio. We've clearly spent a lot of time together, but the next few months we'll get into it more and more and see what makes sense. The way I sum it up is, the merger creates better benefits and growth opportunities than either company could have achieved alone. I know both companies are incredibly strong in terms of C4ISR and a lot of what you might call the future warfare capabilities. What kind of growth do you anticipate in that area? Brown: When I look at the next several years, you're hitting on the right spot. When you look at C4ISR, it's a broad category. When you look at the pieces underneath that, I think Chris and I, our companies, bring great capabilities [that are] complementary. When you think about what we do at Harris, we've got a very strong position in tactical radios — global leadership, U.S. leadership. A lot of it's ground, starting the movements to airborne tier, starting to provide systems. Chris's business is very strong in avionics. It's very strong in data links, very strong in satcom, very strong between the two of us in optical capability. When you look at all of that broad way of getting better ISR information, I think we bring the right capabilities to the fight. Kubasik: We'll be spending about 4% of our revenues on R&D, which I think is aggressive. And we talk about the customers, just to clarify — we have two sets. We have the usual industry partners, who I think will benefit from this combination, the same way that our end-user DoD customer will as well. Are there any programs that you both were competing on, where there's going to need to be some sort management to eliminate conflicts of interest? Brown: Very, very small. It's almost negligible in terms of where we compete head to head. Again, it's a very complimentary set of businesses, so we don't see that as being a big concern. What kind of layoffs are you all anticipating? Brown: We expect half a billion dollars of cost savings, and half of it is going to come from supply chain and facility rationalization — consolidating our mutual footprint. About half of that other half, so 25 percent, is split from corporate and segment overhead reduction in functional efficiencies, shared services — things that we've done and Chris is now driving at all three. But we're in a market today where the unemployment rate's very low. We both were out there hiring people, trying to hire talented engineers and scientists, get people through clearances. So fortunately, we're in an environment where we need more people, not fewer people. Okay, so you think it'll be relatively modest, getting rid of where there might be overlap? Brown: There's going to be some overlap. There'll be some movement of people, but we're not prepared to talk about any employment reduction today. But again, look, it's an environment today where we're looking for more people, especially in the STEM field. The decision to make Melbourne, Florida the headquarters — will that be permanent? Brown: Yeah, it'll be as soon as we close. It'll be the headquarters in Melbourne, and Chris is going to move to Melbourne. We have about 7,000 people in Brevard County. We've been there for 40 years, very deep, entrenched infrastructure. If you know the area, a lot of the defense players, aerospace defense players, are moving now to the Space Coast. It's a very vibrant community. Again, we've been there for a while. We're deeply embedded into the community with a lot of infrastructure at Harris, so that's what we decided to do. Bill, I was convinced you guys were going to move to Washington for a while, but you proved me wrong. Brown: You know, it's interesting. Look, that came up for us, when we did Exelis, but Chris and I've talked about this. It just doesn't make sense for both companies to move headquarters at the same time. That provides an additional risk in a deal. We thought we need to move to one place or the other. We both thought that Melbourne was a better place for the headquarters of the company. Chris, you get to move again. Kubasik: You know, it's been a couple of years, time to move. I'm getting used to it, so if things slow down this week, maybe one night at 10:00 I'll log onto a real estate website and try to be a first mover before the prices increase down there. [laughter] I know you said in the next couple years no acquisitions would be on the horizon, but do you anticipate even more areas of business that would meld with those that you already play well in? Brown: Look, I would say you started out the question the way I'd answer it, which is: it's too soon to determine that. I think the next couple of years will be about integrating the companies. It'll be about divesting. If we see opportunities for portfolio shaping, making sure that happens, so we stay focused on the business where strategically it makes sense for us to be in longer term. But I think Chris and I both have talked very publicly, individually as companies, about M&A is a part of our long-term growth strategy. So over time, we do anticipate, under Chris's leadership, that there'll be other M&As that will happen over time. But I think in the next couple of years, unless it's something exceptional, must have, we're going to stand down on M&A and really focus on integrating the portfolios that we have. Kubasik: Now the organic growth opportunities, and the beauty of having two leaders at the top, will allow us to focus on our customers, not only in D.C., but globally. And you know how much I love to travel internationally — we're going to have customers in over 100 countries. I still look at that in amazement. We'll be able to deepen those relationships. We both work in a lot of the same countries, but when you have a larger combined content, I think we'll be able to advance internationally maybe further, quicker than we would have individually. So I think one of my focus areas is going to be to help grow the business and meet with those customers around the globe. Chris I've spoken to you a couple of times on the big plans and aspirations to be a non-traditional six prime. You got there way faster than I thought you would. Kubasik: Oh, thank you, I'm an impatient person. I know you also said to me that you didn't envision, and I quote, “building multi-billion-dollar satellites, airplanes and ships.” Does that vision of what the company is, and will be, as a six prime remain intact with this merger? Kubasik: We don't really have any major platforms, [but] when I look at the different domains that we're going to be able to serve, whether it's air, space, land or sea or cyber, that's the exciting part. On the air side, as an example, on a combined basis we have some pretty exciting capabilities with avionics and electronic warfare, as an example. So we'll be able to be on the legacy programs, like the F-16 and F-18, which we already are, and we'll have more content on the next-gen platforms like an F-35. So if we go domain by domain, you see the ability to better connect the different platforms to focus on the secured communication. I think we're well positioned for the multi-domain, command and control and communication systems. I'm excited about the small satellite business that Harris had. I think that's great. You know about our UUVs, our UAVs. I think it's going to work well in conjunction with the industry prime. It'll be a collaborative, cooperative relationship. Brown: I think we're not a company that does or will do a lot of these big, major platforms that the big primes are doing today. The way we look at it, 72 percent of the combined business will be prime, meaning sales to and customers. I think that's an important point to make. Bill you've talked to me about space superiority. How key is space to the combined business? Brown: We have a pretty broad business in space in terms of space superiority. A lot of it, it's ground-based capabilities that provide offensive and defensive capabilities to that space architecture. We've developed a lot of exquisite systems and components that have now moved into end-to-end mission solutions for small satellites. We've got a lot of capabilities on our end, in optics. Chris's business, L3, is also strong in small optics, and they've got really good signal intelligence capabilities that I think can augment the things that we do with some of the space architecture. So I see that as helping us continue to broaden that set of mission solutions in the space domain, that I think we spent the last several decades, actually, developing. What does this merger mean to the top primes? Brown: We have at Harris a great relationship with all of the primes. [We] do a lot of work particularly with Boeing and Lockheed. We do quite a bit now with Raytheon as well, so I think we have great partnerships, and I think if anything [this] is going to be additive to that partnership. I think it'll be favorably received by those guys. Kubasik: I agree a 100 percent. I think they're going to be equally excited as the DoD customer for the same reasons. We'll have the money to innovate the R&D, maybe bundle some solutions. They'll also share over time in the affordability of this synergy. I think it's a win-win for the industry and the DoD customers. Bill, in two years you hand the CEO spot to Chris. I'm asking you to look at a couple years down the road, and I know you're remaining on the board, but any other big plans? Brown: Look, that's three and a half years down the road. If I look at six months between sign and close – that's a lifetime year, as you can imagine. I've been CEO here for seven years. That puts me 10 years at the company. I think with Chris, we'll put the company together on the right track. Look, I'll find something productive to do with my life at that point. https://www.defensenews.com/interviews/2018/10/15/harris-and-l3-ceos-talk-merger-divestitures-and-why-we-all-should-have-seen-this-coming

By: Adam Stone A world of interconnected everything is just around the corner, and the military wants a piece of the action. Global investment in the Internet of Things, or IoT, will top $15 trillion by 2025, according to analysts at Business Insider. The Defense Logistics Agency estimates more than 20 billion IoT devices will be in use by 2020 in homes, businesses and government, and the agency sees a military opportunity in this coming wave of connected devices. “IoT is not just hardware for the sake of hardware, It's a way to capture more data, and we can have an enormous number of potential uses for that,” said Air Force Maj Ricky Dickens, deputy program manager for the Distribution Modernization Program (DMP) at the Defense Logistics Agency. The modernization program is looking to leverage IoT in support of warfighter needs. Tagging everything From a logistics perspective, IoT offers the possibility of giving planners deeper, more consistent insight into the location of needed equipment and supplies. It starts with an effort to deploy electronic tags to make materials on the move more readily visible to automated tracking. “We are look at passive RFID tags and bluetooth tags, different technologies that can give us better visibility on our material as they make their way through our facilities and our processes,” Dickens said. Such a capability speaks directly to issues of force readiness. “We are looking to tag commonly used equipment like forklifts. If management could see that they had four forklifts in the building, they could bring two back over here in order to better manage their resources,” Dickens said. IoT-based tracking could help the military to better manage the flow of the tens of thousands of items – from guns to tanks to uniforms – that are in transit daily among forces positioned around the globe. “As material goes through our facilities we want to see where things are bottling up, where there are process chokepoints and inefficiencies that can eliminate,” Dickens said. “You can see where your faster-moving items are and where your slower-moving items are. You can do efficiency studies to see time for moving material based on where it is located in the warehouse and then you can make better decisions about how things are distributed in your facilities.” Watching industry As DLA looks to IoT to enhance logistics, the military is takings its cues from the private sector. Analysts at Market Research Engine expect the market for logistics-related IoT to be worth $10 billion by 2022. Ahead of retail, automotive and healthcare, the analysts identify aerospace and defense as the top emerging end-user of these capabilities. “What's exciting in industry is that they already have this base of IoT and equipment providing more data. The analysis they can do is astounding,” Dickens said. “Some industries are using artificial intelligence to network with this data to see underlying information that isn't readily available, and some of the outcomes have been game-changers for industry.” DLA's own early implementations include pilot projects slated to deploy soon at Red River Army Depot in Texarkana, Texas and at Anniston Army Depot in Bynum, Alabama. “We are going to roll out a real-time location system to be able to provide more visibility into the materials stored at those locations,” Dickens said. At Anniston the system will be used to track a vast inventory of small arms, while at Red River the system will be used to help manage outdoor vehicle storage. “There are tens of thousands of vehicles there over multiple square miles,” Dickens said. As DLA implements an IoT approach over the coming months, facility operators should gain a much finer-grain view of that operation. In the long term, DLA officials say they would like to incorporate some 12,000 commercial suppliers into their IoT-based approach, covering everything “from windows to bolts to air compressors,” Dickens said. Whether, or when, that will happen depends largely on the shifting price of these emerging technologies. “We need to see the pricing curve come down. There is a lot of technology out there but right now it can be very expensive, especially when you consider the scale of DoD operations: We manage 6 million line-items,” Dickens said. “There will have to be a business-case analysis so we are not putting $10 sensors on 5 cent bolts.” https://www.c4isrnet.com/it-networks/2018/10/12/the-answer-to-battlefield-logistics-problems-could-be-iot

By: Aaron Mehta WASHINGTON — With Secretary of Defense Jim Mattis issuing new guidancedemanding readiness for tactical air assets increase in just one year, the Pentagon is openly acknowledging that older planes will have to be retired and cannibalized for parts to make it happen. The department will also look to overhaul how it handles its supply chain, according to the department's No. 2 official. In a September memo, first reported by Defense News, Mattis ordered the Air Force, Navy and Marines to get the Pentagon's fleets of F-16, F-18, F-22 and F-35 fighters to a minimum of 80 percent mission ready. That would represent a major jump in readiness over a short period of time, raising skepticism amongst analysts. From a pure numbers-on-paper standpoint, the easiest way for getting readiness rates up on the fleet would involve retiring older, less ready aircraft — essentially increasing the percentage of good-to-go planes by reducing the overall size of the fleets. Such a move may not be popular on the Hill, which routinely complains about the size of the military compared with previous eras. But it's a logical step being endorsed by both Deputy Secretary of Defense Patrick Shanahan and Gen. Robert Neller, the Marine Corps chief of staff. “You gotta get rid of airplanes. At some point, you gotta get rid of the old ones,” Neller told reporters Wednesday at a Defense Writer's Group event, when asked how he would hit that 80 percent mark. Neller added that such a move has to be part of a broader spectrum of moves, including better quality parts from vendors, being more efficient with maintainers, and adjusting the flying hours for pilots to make sure the wings aren't being worn off on jets. “It's not going to be a single thing, so we've got to do our part,” he added. Speaking to reporters at the AUSA conference the same day, Shanahan seemed to zero in on the oldest Navy jets as ones that could be retired. “Well, when you look at the size of the fleet of the F-18s, you got [F-18A models] out there, then you look at what it would take to restore them to a certain level of readiness, you might say it's much easier just to retire those,” he said. “So, I mean, there's a mix of answers.” “It probably doesn't make sense to generate a lot of activity to make something that is older more reliable, but when you think about the joint strike fighter and the hundreds of those that we're going to take, 80 percent should be the minimum, OK? It shouldn't be some aspirational goal, it should be the minimum.” However, he pushed back at the idea that anyone will “game the system” to get those readiness percentages up. Commercial practices In the memo, Mattis specifically notes the commercial aviation industry is able to maintain higher readiness rates and directs the service to look that way for inspiration. “I am confident in our department's ability to generate additional capacity from our current aircraft inventory, alongside the commercial aviation industry's sustainment of high availability rates,” Mattis wrote. “As we seek to achieve our goals, we can learn from industry's benchmarks for measuring speed, cost and mission capability, as well as its best practices for implementing a sustainable, Department-wide system.” Shanahan, who will be the overall leader of the readiness rate improvement efforts, is a longtime Boeing executive who worked directly on a number of commercial jet production programs. And to him, there are absolutely lessons that can be drawn from passenger aviation. “A jet engine is a jet engine; no one will convince me otherwise,” he said. “I've lived in both worlds, I've been on more airplanes than anybody in the United States, I know these things, OK?” The deputy said his focus was on helping the service develop “methods, systems and practices” that will lead to systemic changes in how maintenance is done and provide dividends for years to come. “When you look at the F-18s, this is the same size of fleet as Southwest has. It's not a super-large fleet, they're all basically the same,” Shanahan noted. “So how do we put in place, you know, the support practices and the parts so that people aren't working as hard?” The need to keep part quality and quantity up were on display just a day after Shanahan and Neller's comments. On Thursday, the Pentagon ordered a temporary stop to flying the F-35 as it investigated a fuel tube inside the engines of the fleet. That same day, an F-22 crashed on its side following a landing gear malfunction. During his talk with reporters, the Navy was singled out as already having committed to improving their methodologies. And he called out the need to “restructure” how both the Navy and Air Force handle their supply chains — something he said will ultimately bleed over into maintenance beyond the four selected jet fleets. “The real end game to me is as a department, how do we end up with a single sustainment system? And what was good about this is that once you get the F-18 right, it spills over into the P-8, because they're side-by-side, so [the P-8 maintainers] going to be like, ‘Those guys, they're working a lot less hard than we are and they're getting much better results, why don't we just do it that way?' “And then as people see the methods they apply to shipbuilding or ship maintenance,” he added. Shawn Snow of Marine Corps Times contributed to this report. https://www.defensenews.com/air/2018/10/11/to-up-fighter-readiness-levels-pentagon-looks-to-retire-older-planes-and-fix-supply-chains

By: Tara Copp and Shawn Snow The Pentagon announced Thursday it is grounding its entire fleet of F-35s, just days after the first crash of an F-35B led investigators to suspect there is a widespread problem with the advanced fighter's fuel tubes. “The U.S. Services and international partners have temporarily suspended F-35 flight operations while the enterprise conducts a fleet-wide inspection of a fuel tube within the engine on all F-35 aircraft,” the F-35 Joint Program Office announced in a statement Thursday morning. “If suspect fuel tubes are installed, the part will be removed and replaced. If known good fuel tubes are already installed, then those aircraft will be returned to flight status. Inspections are expected to be completed within the next 24 to 48 hours.” The office said the grounding “is driven from initial data from the ongoing investigation of the F-35B that crashed in the vicinity of Beaufort, South Carolina on 28 September. The aircraft mishap board is continuing its work and the U.S. Marine Corps will provide additional information when it becomes available.” In the Sept. 28 crash in South Carolina near the Marine Corps Air Station Beaufort, the pilot safely ejected from the aircraft, which belonged to 2nd Marine Aircraft Wing, Marine Fighter Attack Training Squadron 501, known as the “Warlords.” While the F-35′s U.S-based Joint Program Office had indicated that the grounding included aircraft purchased by foreign militaries, the British military signaled Monday that its entire fleet is not grounded. The F-35 Joint Program Office has said safety is a top priority. “The primary goal following any mishap is the prevention of future incidents. We will take every measure to ensure safe operations while we deliver, sustain and modernize the F-35 for the warfighter and our defense partners.” The U.S. grounding comes after the Pentagon announced that a Marine Corps F-35B conducted the platform's first-ever combat mission on Sept. 27. The Marine Corps' aircraft launched from the amphibious warship Essex, striking targets in Afghanistan. In April, a Marine Corps F-35B out the Marine Corps air station at Cherry Point, North Carolina, was forced to make an emergency landing when the aircraft fuel light came on. The grounding news also comes two days after Defense News reported that Secretary of Defense Jim Mattis has ordered the military services to get readiness rates on four planes, including the F-35, up above 80 percent by next September. According to data for fiscal year 2017, the most recent available, the Air Force's F-35A models had around a 55 percent readiness rate, well below that target. Although the Marine Corps is the first U.S. service to fly its joint strike fighters in combat, the aircraft has been used by the Israeli air force to strike targets. In May, Israel Defense Forces officials confirmed that the country's F-35 “Adir” fighters had seen combat in two airstrikes somewhere in the Middle East. The Marine Corps declared the F-35B operational in 2015, becoming the first service to integrate the joint strike fighter into its fleet. The Air Force followed by declaring initial operational capability for the F-35A conventional variant in 2016, while the Navy plans to declare initial operational capability for the F-35C carrier variant in February 2019. The F-35 joint strike fighter is the most expensive program in the Pentagon's history. Currently, the U.S. military has purchased 245 aircraft from Lockheed Martin. The Air Force has 156, the Marine Corps has 61 and the Navy has 28, according to data provided by the joint program office. The U.S. Air Force, Navy and Marine Corps plan to buy a total of 2,456 F-35s, at an estimated cost of $325 billion. In total, the aircraft program is projected to cost about $1 trillion to develop, produce, field and sustain over its lifetime, according to the Government Accountability Office. The F-35B is the short takeoff, vertical landing variant of the aircraft, which allows the pilot to hover and land vertically like a helicopter — a necessity for the Marines, which typically operate from amphibious ships with smaller decks than aircraft carriers. Because the problem is related to a fleetwide engine issue, rather than just in the F-35B models, it appears unlikely that the problem is unrelated to the short-takeoff and vertical-landing capabilities of the Marine's design. The issue as described by the JPO indicates the issue is believed to come from a subcontractor who supplied the fuel tubes for engine manufacturer Pratt & Whitney. A spokesman for the F-35s manufacturer, Lockheed Martin, said Thursday morning that industry partners were working with the F-35's Joint Program Office to investigate the problems. "We are actively partnering with the Pentagon's F-35 Joint Program Office, our global customers and Pratt & Whitney to support the resolution of this issue and limit disruption to the fleet,” said Friedman, Michael, the spokesman for Lockheed. The U.S. Government Accountability Office has projected a total lifetime cost of $1 trillion for the program. F-35s have already been delivered to the United Kingdom, Italy, Israel, Netherlands, Turkey, Australia, Japan, South Korea and Norway. This story is developing and will be updated. Defense News staff writers Aaron Mehta and Valerie Insinna contributed to this report. https://www.militarytimes.com/news/your-military/2018/10/11/dod-announces-global-grounding-of-all-f-35s