BAE Systems plc – Proposed acquisition of Ball Aerospace

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  19 juin 2024 | International, Aérospatial

  GE Aerospace developing hybrid engines for single-aisle jets

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  25 octobre 2018 | International, Aérospatial

  Lockheed: DoD Focused on Lowest Price in Recent Competitions; May Affect LM Participation in Future Bids

  By: Ben Werner Lockheed Martin officials say their loss to Boeing in three recent aircraft competitions indicates that Pentagon weapon buyers are valuing low price tags over high-tech capabilities, which may lead the company to question its participation in some future competitions. The company reported strong revenue growth and expected solid earnings in the future, but during a Tuesday morning conference call with Wall Street analysts, company officials sounded burned by losing out on three significant contracts during the recently completed third quarter of 2018. “We do see that affordability is a very important element for them,” said Marillyn Hewson, Lockheed Martin's chief executive, referring to the Pentagon's weapons buyers. In a competition pitting designs from Lockheed Martin, General Atomics and Boeing, the Navy awarded Boeing an $805-million award in August to build the first four unmanned carrier-based aerial refueling tankers, the MQ-25A Stingray. Ultimately, the Navy wants to purchase 72 more vehicles, for a program price of roughly $13 billion. Boeing also beat out Lockheed Martin for a pair of Air Force contracts – $2.38 billion to replace the Air Force fleet of H-1 Huey helicopters, and $9.2 billion for the new fleet of Air Force T-X trainer jets. “We believe our proposals represented outstanding technical offerings at our lowest possible pricing,” Hewson said. “Had we matched the winning prices and been awarded the contracts, we estimate that we would have incurred cumulative losses across all three programs in excess of $5 billion; an outcome that we do not feel would have been in the best interest of our stockholders or customers.” Hewson and Bruce Tanner, Lockheed Martin's chief financial officer, downplayed the long-term significance of missing out on this trio of large contracts. Lockheed Martin reported revenues of $14.3 billion for the quarter, compared to revenues of $12.3 billion a year ago. Earnings for the quarter were $1.5 billion for the quarter, compared to earnings of $963 million a year ago. Increased sales of F-35 Lightning II Joint Strike Fighters as production increases, as well as increased demand for missiles, were vital to the revenue increases. Looking forward, even with Pentagon spending not expected to grow, Tanner expects Lockheed Martin's profits from sales to grow, resulting in cash from operations to remain in the $7-billion range for the next three years. However, neither Hewson nor Tanner masked their disappointment in the selection of Boeing over Lockheed Martin for the three aviation programs. “Those were disappointing for a lot of reasons. But the fact they really decided, all three, on an LPTA (lowest price technically acceptable) basis, didn't help the situation,” Tanner said. “It's not getting the best capabilities for the warfighter in the hands of the warfighter.” A year ago, when discussing the MQ-25 program, Navy officials suggested capability was their primary focus. Cost estimates were specifically not addressed because the Navy wanted to learn what was possible, Rear Adm. Mark Darrah, Program Executive Officer Unmanned Aviation and Strike Weapons, told USNI News in July 2017. “When we put a number out there, eerily they tend to get to that number and go backwards, go backwards in their development, so they hit that number. We are taking a different approach this time. We're not going to define that number at this point and direct them to provide us with their input so that we can adequately and accurately determine what they truly can do,” Darrah said in the 2017 interview. On Tuesday, Hewson acknowledged the types of projects Lockheed Martin bids on in the future could be affected by the Pentagon's focus on price when seeking new weapons programs. “We're going to pursue good business opportunities for us,” Hewson said. “We have talked about this before: affordability is an important value for them.” Hewson also addressed the growing speculation over whether defense contractors would be allowed to continue doing business with Saudi Arabia, as the United States government still grapples with the fallout from the death of journalist Jamal Khashoggi after last seen entering the Saudi consulate in Istambul. The kingdom is a Lockheed Martin customer, but Hewson said the company had relatively minor exposure to any fallout from having arms deal nixed by the U.S. government. Currently, the largest contract Lockheed Martin has with Saudi Arabia is to build the kingdom's fleet of four multi-mission surface combatant ships, based on the Littoral Combat Ship, worth $6 billion. Saudi Arabia just awarded Lockheed Martin a $450-million detailed planning and design contract, which is related to the planned four-ship purchase. “The largest order we've been waiting on obviously is for THAAD (Terminal High Altitude Area Defense), ” Tanner said. “That has not taken place yet. Not sure when that will take place. The interesting thing with the THAAD order is, while it brings a significant increase in backlog, the resulting sales, profit, and cash flow with that order are very much pushed to the right.” Required upgrades to Saudi Arabia's radar technology will delay the $15-billion THAAD order delivery for at least four years, Tanner explained. Without the technical refresh, he said Saudi Arabia would be unable to use the missiles effectively. “I think we have in 2019 about less than half a billion dollars of sales planned, and I looked out into in 2020, and it's less than $900 million in sales,” Tanner said. “So it's not a huge amount of dependency on the activity, even though the opportunities we've described are much larger than that obviously.” https://news.usni.org/2018/10/23/37506

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  3 juin 2019 | International, C4ISR

  The Army wants to talk to anyone, anytime, anywhere

  By: Mark Pomerleau As the Army moves forward with its multipronged network modernization, the branch has set its sights on servicewide communications capabilities integrated from top brass down to the smallest tactical units. Army leaders expressed the need for technologies to enable units' communication from the tip of the spear down to systems in vehicles and at command units. “The ‘integrated' part of ‘integrated tactical network' is making sure we don't field a set of stovepiped capabilities that do not provide the robust capability that we think we want for the future fight,” Maj. Gen. David Bassett, program executive officer for Command, Control, Communications-Tactical, told C4ISRNET. “We've got to field this as an integrated capability. It's not just about focusing on one piece or the other. We've got to work it all together along with network operations tools that help soldiers employ those system.” The Army's integrated tactical network (ITN) is described as a mix of existing programs of record and commercial off-the-shelf capabilities that allow a unit to communicate in congested environments and provide situational awareness. The network also feeds into programs such as the Command Post Computing Environment (CPCE). CPCE is a web-enabled system that will consolidate disparate command post tools, programs and tasks and help the Army to react faster than the enemy. This includes the Tactical Ground Reporting System (TIGR), Global Command and Control System-Army (GCCS-A), Command Web and Command Post of the Future (CPOF). This uniform interface will be available from the command post to ground vehicles to dismounted soldiers, allowing each to upload and share information in a centralized database. During exercises last year, soldiers worked through how to identify targets on the ground and pass that information through the network via vest-mounted tablets and a Google Maps-type function. “Target acquisition from an operator's perspective starts in the ITN. Then it will make its way eventually to CPCE if we can get the ITN and CPCE to talk to each other, which is definitely the next bridge line for these systems,” Maj. John Intile, executive officer for 1st Battalion, 508th Parachute Infantry Regiment, 82nd Airborne Division, told C4ISRNET during a battalion event at Camp Atterbury, Indiana. The Army's fire support Command and Control (C2) system, Advanced Field Artillery Tactical Data System (AFATDS), is slated to be incorporated in CPCE after the first round of aforementioned systems. “While the integrated tactical network in our first line of effort is focused on the lower echelon war-fighting units, the Command Post Computing Environment ... is really done at the corps and down trace units,” Maj. Gen. Peter Gallagher, director for the network cross-functional team, told C4ISRNET. https://www.c4isrnet.com/c2-comms/2019/05/31/the-army-wants-to-talk-to-anyone-anytime-anywhere/