30 avril 2020 | International, Aérospatial

Boeing gets another $827M charge on the KC-46 program

By: Valerie Insinna

WASHINGTON — Boeing took a $827 million hit as cost overruns continue for the KC-46 tanker program, the company announced Wednesday.

About $551 million of the pre-tax charge was caused by new expenses associated with designing and integrating a new Remote Vision System for the tanker as part of an April agreement with the Air Force.

The remainder of the charge reflected “productivity inefficiencies and COVID-19 related factory disruption,” according to a news release. KC-46 production stopped for about three weeks over the past month due to a temporary shutdown at Boeing facilities in the Seattle area — including the factory in Everett, Wash., where the tanker is produced.

With the new charge, Boeing has now racked up about $4.6 billion in cost overruns over the life of the KC-46 program. Those expenses must be completely paid by Boeing under the terms of the $4.9 billion fixed-price firm contract it agreed to in 2011.

The bill comes as Boeing contends with the continued grounding of the 737 MAX and instability to the air travel market posed by COVID-19, which has led to lost orders and disruptions throughout the company's production lines.

But the RVS deal struck in April could potentially mark a new chapter for the tanker program, which has been mired in disputes between Boeing and the Air Force for years.

The RVS — integrated by Boeing with cameras and sensors from Collins Aerospace — feeds live video and other data to the boom operator, who is able to use those cues to pump gas into another aircraft. But the Air Force has complained that the system does not work properly in all lighting conditions, leading to an increased risk of the KC-46 accidentally scraping the aircraft receiving fuel.

Under the terms of the new deal, Boeing will make incremental hardware and software improvements to the existing system, but it will also design a new “RVS 2.0” with high-definition color cameras, better displays and improved computing systems not on the market when the first RVS was developed.

During an earnings call with investors on Wednesday, Boeing CEO Dave Calhoun said the defense market continues to be healthy with solid demand.

Overall, first quarter revenue for Boeing's defense sector decreased to $6 billion, down from about $6.6 billion in 2019. Most of that reduction was due to the KC-46 charge, according to the company, but a number of other defense programs were also impacted by the coronavirus pandemic, leading to reduced margin.

https://www.defensenews.com/air/2020/04/29/boeing-gets-another-827m-charge-on-the-kc-46-program/

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  • Army Researchers Develop Breakthrough Sensors For Small Drones

    27 août 2020 | International, Aérospatial

    Army Researchers Develop Breakthrough Sensors For Small Drones

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  • Why the head of NATO says there’s ‘no guarantee’ that the trans-Atlantic alliance will survive

    22 juin 2018 | International, Aérospatial, Naval, Terrestre, C4ISR

    Why the head of NATO says there’s ‘no guarantee’ that the trans-Atlantic alliance will survive

    By: Jill Lawless, The Associated Press LONDON — The bonds between Europe and North America are under strain and there's no guarantee the trans-Atlantic partnership will survive, the head of NATO warned Thursday. NATO Secretary General Jens Stoltenberg called for an effort to shore up the military alliance amid the divisions between Europe and the United States over trade, climate change and the Iran nuclear deal. “It is not written in stone that the trans-Atlantic bond will survive forever,” Stoltenberg said during a speech in London. “But I believe we will preserve it.” NATO has been shaken by U.S. President Donald Trump's “America First” stance and mistrust of international institutions. Trump once called NATO obsolete and has repeatedly berated other members of the 29-nation alliance of failing to spend enough on defense. Ahead of a NATO summit in July, Stoltenberg said “we may have seen the weakening” of some bonds between North America and Europe. But he insisted that “maintaining the trans-Atlantic partnership is in our strategic interests.” Stoltenberg said the world faced “the most unpredictable security environment in a generation” due to terrorism, proliferating weapons of mass destruction, cyberattacks and an assertive Russia. “We must continue to protect our multilateral institutions like NATO, and we must continue to stand up for the international rules-based order,” he said. After meeting Prime Minister Theresa May in Downing St., Stoltenberg praised Britain, one of a minority of NATO countries to meet a target of spending 2 percent of GDP on defense. He said that despite differences between the U.S. and Europe, NATO delivered “trans-Atlantic unity” every day. “We have had differences before, and the lesson of history is that we overcome these differences every time,” Stoltenberg said. Some European officials worry the Trump administration is cool on efforts to hold Russia to account for misdeeds including election meddling and the nerve-agent poisoning of former spy Sergei Skripal in England, which the U.K. blames on Moscow. At a G-7 summit this month, Trump suggested that Russia should be readmitted to the group of industrial powers, from which it was expelled over its annexation of Crimea in 2014. Some U.S. allies are concerned by reports that Trump plans to meet Russian President Vladimir Putin when the American leader travels to Europe for the NATO summit next month. But Stoltenberg said meeting Putin does not contradict NATO policies. “We are in favor of dialogue with Russia,” he said. “We don't want a new cold war. We don't want a new arms race. We don't want to isolate Russia.” https://www.militarytimes.com/flashpoints/2018/06/21/why-the-head-of-nato-says-theres-no-guarantee-that-the-trans-atlantic-alliance-will-survive/

  • Congress to buy 3 more LCS than the Navy needs, but gut funding for sensors that make them valuable

    19 septembre 2018 | International, Naval

    Congress to buy 3 more LCS than the Navy needs, but gut funding for sensors that make them valuable

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All this while Congress continues to pump money into building ships without any of the mission packages having achieved what's known as initial operating capability, meaning the equipment is ready to deploy in some capacity. (The surface warfare version has IOC-ed some initial capabilities but is adding a Longbow Hellfire missile system that will be delayed with cuts, the source said.) That means that with 15 of the currently funded 32 ships already delivered to the fleet, not one of them can deploy with a fully capable package of sensors for which the ship was built in the first place — a situation that doesn't have a clear end state while the programs are caught in a sucking vortex of cuts and delays. “This is a prime example of program issues causing congressional cuts which lead to further delays, then more cuts in a vicious cycle," said Thomas Callender, a retired submarine officer and analyst with The Heritage Foundation. The Navy has been pursuing a strategy of buying 32 littoral combat ships and then 20 more lethal frigates now in development. Surface warfare boss Vice Adm. Richard Brown told Defense News in August that both the surface warfare package and the anti-submarine warfare package were on track to be ready in 2019, but that future is now in doubt, Callender said. “The appropriators' FY19 cuts of zeroing out ASW module and cuts to the MCM [mine countermeasures] module will likely delay IOC and operational testing,” Callender said. But the appropriators shouldn't take all the heat, he added. The development of the different modules have hit technical issues and are all drastically behind schedule. 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Appropriators can fund what they want to fund. A statement from the office of Senate Appropriations Committee Chairman Sen. Richard Shelby, R-Ala., said the committee works with the Navy on these programs and funds what is ready to be funded. “The Committee has worked with the Department of the Navy to understand the mission system test requirements — which have often changed due to variety of reasons — and focused on funding those requirements that are ready for production,” said Blair Taylor, Shelby's communications director. Merry-go-round Part of the reason the program is vulnerable to these cuts in a way that, for example, the Arleigh Burke destroyers are not to the same extent is because of the program's structure. The ships were to be purchased separately and designed to be highly versatile, switching out in a matter of days when pierside from anti-surface systems to countermine systems to anti-submarine systems as the missions changed. But a reorganization of the program in 2016 ordered by Chief of Naval Operations Adm. John Richardson and led by then-head of the Naval Surface Force Pacific Adm. Thomas Rowden changed each of the ships to single-mission ships, with the first few ships slated to be surface warfare variants. But the warfare packages are still being developed under separate programs, leaving them as low-hanging fruit for cuts. “The separation of the mission modules from specific LCS hull procurement does leave them more vulnerable to these type of programmatic cuts,” Callender said. The whole issue is taking on increasing urgency as LCS builders Fincantieri in Marinette, Wisconsin, and Austal USA in Mobile, Alabama, begin pushing ships to the fleet by the handful each year. As of August, the Navy had 15 LCS vessels delivered, with 29 awarded and 11 in various stages of construction. But as the development modules has devolved into a merry-go-round, where cuts beget delays that beget more cuts, the fix in which this puts the Navy becomes more real by the day. The fleet needs the capabilities the LCS modules are supposed to deliver. For example, the Navy is slated to decommission its last Avenger-class minesweeper in the 2020s. This means the minesweeping package really can't suffer too many more delays without greatly increasing the threat posed to the Navy by cheap marine mines, leaving the fleet with only ad hoc solutions for combating them until the minesweeping package can be fielded in numbers. 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