5 octobre 2023 | International, Naval

General Dynamics Electric Boat Awarded $967 Million Contract Modification for Virginia-Class Submarines

The cost-plus-fixed fee modification to a previously awarded contract totals $967,185,528.

https://www.epicos.com/article/776056/general-dynamics-electric-boat-awarded-967-million-contract-modification-virginia

Sur le même sujet

  • Army Study Asks: How Much Modernization Can We Afford?

    10 juin 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Army Study Asks: How Much Modernization Can We Afford?

    The Army's drive to modernize by 2035 is too big for traditional five-year spending plans, acquisition chief Bruce Jette said. So he's reviving long-term economic forecasting used in the Cold War. By SYDNEY J. FREEDBERG JR.on June 09, 2020 at 12:37 PM WASHINGTON: The Army's acquisition chief says the service is sticking with its 34 top-priority programs – in the face of budget pressure from the pandemic. But most of those programs will only move from prototypes to mass production in the second half of the 2020s; then they stay in service for decades with repeated upgrades. So, assistant secretary Bruce Jette says, the Army needs to exploit new technologies like 3D printing and modular upgrades to reduce long-term costs – but also revive long-term economic forecasting techniques largely neglected since the Cold War. “At this point, we're remaining on schedule with the ‘31 plus 3,'” Jette said during an Association of the US Army webcast yesterday. (The Army divides the 34 programs this way because 31 of them, from intermediate-range missiles to smart rifles, are managed by Army Futures Command, but three of the most technologically challenging – hypersonic missiles and two types of missile defense lasers – belong to the independent Rapid Capabilities & Critical Technologies Office). But the service needs to do more planning: “A second thing in the background that we are doing is taking a look at a holistic model, an economic model of the Army.” “We are taking some steps to provide additional data in case there's a prioritization that does come down the road, due to changes in the budget profiles,” Jette said. “That business requires us to have this long-term full understanding of economics, which is what we're focused on trying to develop over the next year.” That study will help inform Army leaders if they have to make a hard choice on which of the 34 priority programs to put first – and, while Jette didn't say so aloud, which may be cut back or canceled entirely. Beyond 2026 The Pentagon normally builds its annual budget two years ahead of time. Congress is now considering the 2021 request, largely drafted in 2019. Those budgets include a less-detailed annex, called the Future Years Defense Program (FYDP) that outlines the five years ahead. Now, some of the Army's new weapons will enter service in that timeframe, in limited numbers, including new hypersonic and intermediate-range missiles in 2023. But many, including some of the most expensive, will take longer. So new armored vehicles won't enter service until 2028, new high-speed aircraft not until 2030. Actually building enough to equip a sizable combat force takes even longer. The Army aims to build a decisive counter to Russian aggression by 2028, but expect a force adequate to counter China only by 2035. “I have to have a much longer view of the battlespace, the economic battle space,” Jette said. “The objective [is] to lay a foundation upon which we can take a serious look at what the long-term implications of owning a piece of equipment,” he said. So “I'm working with the G-8 [the Army's deputy chief of staff for resourcing]. In fact, we just had a meeting on this last week to pull out some models that were actually used more in the Cold War, that we sort of let wane [during] Iraq and Afghanistan.... Next week I go up to West Point to have ORSA [Operations Research/Systems Analysis] cell up there that specifically is focused on economics.” New Tricks Now, the Army doesn't plan to simply repeat its Cold War past. The Reagan-era “Big Five” – the M1 Abrams and M2 Bradley armored vehicles, Apache and Black Hawk helicopters, and Patriot missile defense system – have been repeatedly upgraded since their inception. But these platforms are running out of room for more horsepower, armor protection, and firepower, and they were never designed to allow the constant upgrades required to keep pace with modern advances in electronics. The M1 Abrams, for instance, is literally hard-wired. “There are literally, in a tank, over a couple of tons of cabling, all tremendously expensive and all very, very structured,” said Jette, a former tanker himself. “So if you want to change something ... you have to re-cable large portions of it.” The Army must account not only for the up-front cost to research, develop, and build the new weapons, Jette emphasized, but also the much larger long-term bill to operate, maintain and upgrade them. “If we don't think about how it's going to be enhance-able, upgradable, and modified for different uses over a period of time,” he said, “we're missing things, because we do keep them for 30, 40 years. “For industry, if you have a good idea and a new component, how do we get them in a vehicle without having to replace half of the components?” he asked. That requires a new approach called modular open systems architecture that allows you to plug-and-play any new component as long as it meets certain technical standards. “By getting this much more open architecture in place on these vehicles,” he said, “we think that we're going to be able to keep them growing to the future over that 30 to 40 year period.” The Army is also eager to use digital designs, 3D printing, and other advanced manufacturing techniques so it can print out spare parts as needed, rather than stockpile vast quantities of everything it might need for every system. (Jette just visited the Army's 3-D printing hub at Rock Island Arsenal, he said enthusiastically). But this vision raises complex issues of not only managing the technical data but wrangling out the legal rights to use it. Many companies depend on the long-term revenue from selling spares and upgrades, and they're not It's a knotty intellectual property issue that Jette is keenly aware of, being a patent-holder and former small businessman himself. “I do understand ... what type of risk it is. I'll frankly admit that many of the people in the military who fundamentally only been in the military don't understand,” Jette said. “If the risk is totally on you, and it makes no economic sense, I recommend you not answering the RFP.” If too few companies respond to an official Request For Proposals, Jette said, that provides valuable feedback to the Army that maybe it's doing something wrong – feedback he can use in his own quest to educate the service. “Sometimes,” he said, “challenges to RFPs are a good way for you to help me to make sure that people understand that this is too much risk we're asking of industry.” https://breakingdefense.com/2020/06/army-study-asks-how-much-modernization-can-we-afford

  • McCarthy: Without budget growth, Army heads toward ‘collision course’

    5 mars 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    McCarthy: Without budget growth, Army heads toward ‘collision course’

    Jen Judson WASHINGTON — Without top-line growth in the U.S. Army's future budgets, the service is headed toward a “collision course,” Army Secretary Ryan McCarthy said March 4 at the McAleese Defense Programs Conference. The Army has already gone through two-and-a-half years of deep budget scrubs through its “night court” process, which seeks to find funding areas in the budget that don't align with the National Defense Strategy and the service's modernization efforts, and moves those dollars into accounts that meet its priorities. In the Army's first night court, the chief, secretary, vice chief and undersecretary presided over decisions — big and small, easy and tough — for roughly 600 programs, shifting $33 billion from programs across the fiscal 2020 through FY24 five-year plan. In FY20, the Army is investing $8.6 billion in modernization efforts and, across the next five years, investing a total of $57 billion, a 137 percent increase from the previous year's five-year plan. The Army found another roughly 80 programs to scale back or cancel in order to free up funding in FY21, but Army leadership has admitted it's getting harder and harder to find low-hanging fruit in the process. The Army is now in the process of conducting its night court for FY22 in order to try to find more money to align with its modernization goals. Officials will have to start making choices in terms of restructuring procurement accounts to begin the divestiture of current capabilities in the force to make room for future programs that will enter Low-Rate Initial Production (LRIP) in the comings years. But that may not be enough if the Army doesn't get an increased top line of 3 to 5 percent in future budget years, McCarthy said. “What is going to be a challenge for us in ‘22 and ‘23 when [modernization programs] start to mature, we have to make choices in this milestone process, you start buying LRIP tranches,” he said. At the same time the Army has to grow the force because its current ratio of dwell time to deployment time is 1:1 worldwide, McCarthy said. “If we don't get 3 to 5 percent growth in the out-years, there is a collision course if you keep growing the force and starting bringing in all these capabilities,” he said. “Choices will have to be made if we can't increase the top line in ‘22 and ‘23, so will that mean will we have to flatten end-strength? Do we tier the weapon systems that we bring into the formations,” McCarthy asked. “These are the choices that we are talking about, we are looking at and we are going to be prepared to make.” McCarthy referenced recent comments from Defense Secretary Mark Esper regarding the need to review combatant command demands and asked, “Can we reduce demand worldwide? ... Are we being efficient with every soldier, sailor, airman and marine that we send forward? Can the allies do better? Can we increase their capabilities that do more of the burden that is everything from investing as well as putting more boots forward in the form of deterrence?” McCarthy told reporters following his speech that if the demand doesn't come down there, "there is no trade space left even if you are going to kill weapon systems that we've had for 40 to 50 years and if you are successful with Congress in getting that done.” The Army is discussing the numbers it needs with the White House, McCarthy added, but noted that “this is an election year. This is tough. This is going to be a march for the next couple of months.” But McCarthy stressed, the Army will “continue to grow until we are forced with a really difficult, really another inflection point, if you will, downstream.” https://www.defensenews.com/land/2020/03/04/mccarthy-without-budget-growth-army-heads-toward-collision-course/

  • For IT companies, the secret to success in defense is all about big growth

    14 août 2018 | International, Aérospatial, Naval, Terrestre, C4ISR

    For IT companies, the secret to success in defense is all about big growth

    By: Jill Aitoro WASHINGTON — The secret to tackling the defense information technology market may be scale. Looking specifically at the pure-play IT companies that landed on the 2018 Defense News Top 100 list, many of those that have doubled down in some capacity saw defense revenue increase during fiscal 2017. That came on the tail end of another trend among the largest defense primes, to get out of the IT business. “The evolution started a couple years ago, where the large defense primes who had boned up on IT service work during the war [on terror] started to realize that for a variety of reasons they might not be able to compete as effectively, or extract the returns they want out of a business like that,” said Jon Raviv, senior analyst and vice president for aerospace and defense at Citi Research. Divestitures followed, and pure-play IT companies were able to quickly scale up not just in size and their ability to support massive contracts, but also in capability set. The acquisition of Lockheed Martin's IT business transformed Leidos from a $5 billion company to a $10 billion company. That deal closed in late 2016, explaining how the company saw double-digit growth in defense revenue in both 2016 and 2017 — despite the buy actually making the company less defense heavy overall. Similarly, CACI closed on the acquisition of L3 Technology's National Security Solutions for $550 million in February 2016 — three months before the end of its fiscal year. The associated revenue contributed to the 16 percent increase in defense revenue during 2017. Leidos CEO Roger Krone, in an interview with Defense News in 2016 soon after the acquisition closed, pointed to “scale, but not scale for scale's sake” as a big factor in the buy — noting, too, the importance of balancing the portfolio and geographic distribution. He also pointed to sheer numbers — 15,000 employees specifically — many with security clearances. The trend does seem to be continuing. CSRA chose to not participate in the 2018 Top 100 because its $9.7 billion acquisition by General Dynamics closed by the time data collection for the list kicked off. While General Dynamics is a top defense prime, its IT business functions as a largely separate entity, similar to the pure-play IT companies. The acquisition of CSRA, which reported $2.25 billion in defense revenue for fiscal 2016 — will add significant scale to GDIT. It is also likely to influence the company's Top 100 rank next year. The future promises more cyber and IT-related merger and acquisition activity in the vein of that deal, according to Daniel Gouré, a vice president with the Lexington Institute think tank. “Raytheon is still in acquisition mode with cyber, so it's an area that's still kind of churning,” he said. “I wouldn't be surprised to see some of these big players acquire some of the more defense-oriented cyber players.” Unclear is what the sweet spot may be for those exclusively IT-focused firms. “Where we sit right now, it's not clear what the right size is,” Raviv said. “GDIT and Leidos are about $10 billion in sales; SAIC and CACI and ManTech are lower tier. All of those companies say they are happy with scale but could do a deal. Whether they call it scale, or marrying capability sets — it's all marketing, I suppose.” And there are other tactics that achieve scale without acquisition. Perspecta emerged on the 2018 Top 100, having launched June 1, 2018 through the combination of DXC Technology's U.S. public sector business, Vencore, and KeyPoint Government Solutions. As one entity, Perspecta reported $2.73 billion in defense revenue and ranked 37. To put that in perspective, Vencore ranked 67 in last year's list, with $886.59 million in defense revenue. And all of these pure-play companies are increasingly marketing themselves as conduits to the “nontraditional players” that the Pentagon is so keen to attract. Amazon Web Services, for example, will often partner with government IT companies on defense contracts to hand off some of the contracting morass. That said, for all the potential, the bulk of the defense IT market is notoriously fickle. Services often set aside IT projects in an effort to preserve platform buys, and margins can be low. Agencies also struggle to balance upkeep of existing systems versus modernization efforts versus research and development into the next great technological marvel. But as Raviv noted, it's all IT. “Yes, there are companies working on high-end cyber, the ability to launch attacks through cyberspace or to harden the communication node on a new missile so it can't be hacked by, say, China. And while the word cyber came up a lot three or four years ago, now you hear a lot about AI, autonomy and machine learning. But it's all technology. And it's a lot of smart people working on a lot of advanced things many of us don't understand.” https://www.defensenews.com/top-100/2018/08/09/for-it-companies-the-secret-to-success-in-defense-is-all-about-big-growth/

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