17 août 2020 | International, Aérospatial

Amid The Financial Wreckage Of A&D, Space Rises Above

As public companies reported their latest quarterly results amid the recent financial carnage in the aerospace and defense sector, it was hard to find genuine optimism. With COVID-19 gutting the commercial aerospace manufacturing sector and maintenance, repair and overhaul segment, and expectations hardening around flat or worse defense spending, most corporate managers provided slimmed-down outlooks for the foreseeable future.

But one segment stood out for its near-universal positivity: space. It may have almost taken an implosion of the airliner business and historic federal deficit spending against a pandemic to get there, but suddenly outer space looks like the best place to be in business.

“Space continues to be an opportunity for companies to drive growth in a flat-to-down environment,” Jefferies analysts wrote in an Aug. 10 report.

As the recent earnings season showed, numerous companies are being lifted by space business. “The primes are having such strong growth there,” Credit Suisse analyst Rob Spingarn noted in a July 31 teleconference.

For instance, L3Harris Technologies sees space—both space-based and ground support—as its fastest-growing opportunity, with a combined $10 billion pipeline of long-term opportunities and several bid proposals awaiting responses that total around $1 billion in the near term. “We feel very encouraged by the space business as a whole,” said L3Harris Chairman and CEO Bill Brown.

Several others below the marquee prime government contractor level are also benefiting, according to Jefferies analysts Sheila Kahyaoglu and Greg Konrad. “Kratos Defense and Security is benefiting from the need for low-Earth-orbit (LEO) satellites in real-time data processing, and Mercury Systems is getting pulled in, given an increased need for data processing power at the edge.” What is more, both Booz Allen Hamilton and Parsons indicate that space is even a target area for mergers and acquisitions.

President Donald Trump's administration's spending and focus on space, from the new U.S. Space Force to a NASA mission to return Americans to the Moon in the coming years, certainly helps set the tone. Significantly, there is a commercial sector race to establish LEO-based communication and Earth observation services—albeit one driven by billionaires and their personal passions for a space legacy.

A more subtle shift, though no less significant, is occurring down the value chain, where there is an emerging middle market for space services. Companies such as Parsons, Virgin Galactic and KBR have reengineered their companies and are making money by providing support services for the space effort—in ways that are not as sexy as SpaceX's NASA crew transport mission but just as real when it comes to making a profit.

“We had nice year-on-year growth in the space business, just under double-digit growth there,” KBR CEO and President Stuart Bradie said Aug. 6. The former Halliburton business, once publicly associated with military logistics support during the George W. Bush administration, now is the world's only government-licensed provider training astronauts for commercial space missions.

“Investors often overlook that KBR has transformed its portfolio since 2015 and still perceive the firm as an engineering and construction play, given its heritage as a unit of Halliburton,” Cowen analyst Gautum Khanna noted in June. But acquisitions of Wyle Labs, Honeywell Technology Solutions and Stinger Ghaffarian Technologies in 2016-18 “put KBR on the map as a noteworthy government services competitor.” Government services, especially space, now are responsible for 70% of the company's annual revenue.

Interestingly, the space market is expanding so fast that KBR itself may have competition for astronaut training. In June, NASA signed a Space Act Agreement with Virgin Galactic to develop a private orbital astronaut readiness program for space tourists.

“As part of this, we will offer our existing space training infrastructure at Spaceport America and customized future Astronaut Readiness Program . . . allowing these private astronauts to become familiar with the environment in and en route to space such as G forces and zero G,” Virgin Chief Space Officer George Whitesides said Aug. 3. “This initiative has been largely driven by the considerable demand among our existing customer base to participate in orbital space flights.”

There have also been plenty of space company setbacks in recent months, with OneWeb's bankruptcy heading the list. But it should come as no surprise that business success in space is hard. Maybe what is surprising is that space is already proving lucrative for public investors, and the market looks set to grow.

https://aviationweek.com/defense-space/space/amid-financial-wreckage-ad-space-rises-above

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22 janvier 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Contract Awards by US Department of Defense - January 21, 2020
ARMY BAE Systems Land & Armaments LP, Sterling Heights, Michigan, was awarded a $400,905,801 modification (P00080) to contract W56HZV-15-C-A001 to procure 160 armored multi-purpose vehicles. Work will be performed in York, Pennsylvania, with an estimated completion date of Feb. 28, 2023. Fiscal 2019 and 2020 European reassurance initiative, defense; and procurement of weapons and tracked combat vehicles, Army funds in the amount of $400,905,801 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. TechTrans International Inc., Houston, Texas, was awarded a $231,277,398 cost-no-fee contract for non-personal services to provide event planning, coordination and logistical support for training requirements. 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 Aug. 31, 2025. U.S. Army Mission and Installation Contracting Command, Fort Sam Houston, Texas, is the contracting activity (W9124J-20-D-0004). Arcadis U.S. Inc., Highlands Ranch, Colorado, was awarded a $32,000,000 firm-fixed-price contract for architect and engineering services. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of Jan. 21, 2025. U.S. Army Corps of Engineers, New York, New York, is the contracting activity (W912DS-20-D-0002). Agate Construction Co., Cape May Courthouse, New Jersey, was awarded a $9,265,354 firm-fixed-price contract for repairs to the Hereford Inlet seawall. Bids were solicited via the internet with three received. Work will be performed in Cape May, New Jersey, with an estimated completion date of April 30, 2021. Fiscal 2019 civil construction funds in the amount of $9,265,354 were obligated at the time of the award. U.S. Army Corps of Engineers, Philadelphia, Pennsylvania, is the contracting activity (W912BU-20-C-0006). DEFENSE LOGISTICS AGENCY AM General LLC, South Bend, Indiana, has been awarded a maximum $40,469,946 firm-fixed-price, indefinite-delivery requirements contract for transmission hydraulics. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a three-year contract with no option periods. Location of performance is Indiana, with a Jan. 23, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2023 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-20-D-0064). Lions Services Inc., Charlotte, North Carolina, has been awarded a maximum $24,502,400 firm-fixed-price, indefinite-quantity contract for hydration carriers. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(5), as stated in Federal Acquisition Regulation 6.302-5. This is a three-year contract with no option periods. Location of performance is North Carolina, with a Jan. 31, 2022, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-B080). Federal Prison Industries Inc.,* Washington, District of Columbia, has been awarded a maximum $24,465,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for trousers. This is a one-year base contract with four one-year option periods. Locations of performance are District of Columbia, Texas, Alabama and Mississippi, with a Sept. 30, 2021, performance completion date. Using customers are Army and Air Force. Type of appropriation is fiscal 2020 through 2021 defense working capital fund. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-F056). NAVY Transoceanic Cable Ship Co. LLC, Baltimore, Maryland, is awarded an $18,375,084 for a firm-fixed-price modification with reimbursable elements to a previously awarded contract N32205-19-C-3506. This modification provides for the first, six-month option for one cable ship, CS Global Sentinel. This vessel will be utilized to lay and repair cable for the Department of Defense worldwide. Work will be performed worldwide, and is expected to be completed, if all options are exercised, by Dec. 22, 2023. This contract includes a 12-month base period, two six-month option periods, two 12-month option periods, and one 11-month option period. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $10,500,000; and procurement Navy funds in the amount of $7,875,084 are obligated at time of award and will expire at the end of the fiscal year. The Military Sealift Command, Norfolk, Virginia, is the contracting activity. Ternion Corp., Huntsville, Alabama, is awarded a $13,300,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the sustainment and upgrade of the Flexible, Analysis, Modeling, and Exercise System Automated System Trainer software applications, software maintenance, and upgrade and modification services in support of the Common Aviation Command and Control Increment I system. The program is managed within the portfolio of Program Executive Officer Land Systems, Quantico, Virginia. Work will be performed in Huntsville, Alabama, and is expected to be completed by Jan. 31, 2025. The ordering period of the indefinite-delivery/indefinite-quantity contract will be for five years and will begin on Feb. 1, 2020. Fiscal 2020 operations and maintenance (Marine Corps) funds in the amount of $670,480; fiscal 2020 other procurement (Navy and Marine Corps) funds in the amount of $742,542; and fiscal 2020 research, development, test and evaluation (Marine Corps) funds in the amount of $160,900 for a total amount of $1,593,092 will be obligated on the first delivery order at time of award. Fiscal 2020 operations and maintenance (Marine Corps) funds will expire at the end of the current fiscal year. This contract was not competitively procured, in accordance with Federal Acquisition Regulation 6.302-1 and 10 U.S. Code § 2304(c)(1). The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-20-D-0013). BAE Systems Controls Inc., Endicott, New York, is awarded a $7,727,763 cost-plus-fixed-fee modification (P00007) to a previously award firm-fixed-price delivery order (N00019-18-F-2483) against basic ordering agreement N00019-18-G-0019. This modification provides for non-recurring engineering for the Forward Defense Weapons Systems cockpit controls and cabin intrusion reduction effort and associated prototypes in support of the tiltrotor aircraft, CV-22. Work will be performed in Endicott, New York (88.7%); Fort Worth, Texas (11%); and Fort Wayne, Indiana (0.3%), and is expected to be completed in June 2022. Fiscal 2019 research, development, test and evaluation (Air Force) funds in the amount of $1,566,750; and fiscal 2020 research, development, test and evaluation (Air Force) funds in the amount of $494,000 will be obligated at time of award, $1,566,750 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. *Mandatory source https://www.defense.gov/Newsroom/Contracts/Contract/Article/2062046/source/GovDelivery/
7 septembre 2018 | International, Aérospatial

France-Parly satisfaite des nouvelles fonctionnalités de l'A400M
PARIS, 6 septembre (Reuters) - La ministre française de la Défense Florence Parly s'est déclarée jeudi satisfaite des nouvelles fonctionnalités en cours de test sur l'avion de transport militaire A400M d'Airbus. “Nous sommes dans une phase extrêmement positive”, a-t-elle observé lors d'une rencontre avec l'Association des journalistes professionnels de l'aéronautique et de l'espace (AJPAE), disant attendre l'intégralité des fonctionnalités en 2021. Les retards successifs du programme A400M ont conduit les pays clients, comme la France, à réceptionner des appareils n'ayant pas toutes les fonctionnalités contractuelles, comme le largage de parachutistes par les portes latérales, des équipements électroniques de défense et le ravitaillement en vol d'hélicoptères. En mars, Reuters avait révélé que l'armée allemande avait dit dans un rapport confidentiel voir un “risque important” que l'A400M n'ait pas toutes les capacités tactiques requises après 2021, au moment du retrait de sa flotte de C-160 Transall. “Chaque étape que nous passons est une étape qui se franchit avec succès et donc ceci aide chacun à être un peu patient”, a ajouté Florence Parly. L'armée française avait annoncé au printemps la réception de son 14e A400M, avec un objectif de 25 unités en 2025 et une cible de 50 à terme. Le président exécutif d'Airbus Tom Enders a fait état fin juillet d'avancées dans les négociations avec les pays clients de l'A400M pour parvenir à un amendement du contrat d'ici la fin 2018. https://fr.reuters.com/article/frEuroRpt/idFRL5N1VS3VA
7 juillet 2020 | International, Aérospatial

L3Harris building demonstration constellation for the Air Force
Nathan Strout L3Harris has successfully launched a new demonstrator satellite for the U.S. Air Force, the company announced July 6. The small satellite is part of a constellation of end-to-end small satellites the company is developing for the Air Force. While the company declined to discuss launch details due to the classified nature of the program, L3Harris noted in a press release that it is the prime contractor for the “responsive constellation contract” and is responsible for designing, developing, building, testing and deploying the satellites. “L3Harris has developed and supported various aspects of satellite missions over the last several decades as a component supplier or hosted payload,” said Ed Zoiss, president of space and airborne systems at L3Harris. “In collaboration with the U.S. Air Force, we pulled the pieces together to successfully plan, develop and execute an affordable, high-performance space mission, which is part of a responsive constellation contract.” The Evolved Expendable Launch Vehicles Secondary Payload Adapter (ESPA) satellite system features a reprogrammable payload that will allow operators to change the satellites' missions while on orbit. The payload will also utilize L3Harris' High Compaction Ratio unfurlable X-band antenna to enable high-speed data communication. https://www.c4isrnet.com/battlefield-tech/space/2020/07/06/l3harris-building-demonstration-constellation-for-the-air-force/

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