20 mai 2020 | International, Aérospatial

Lockheed slated to miss F-35 delivery target in 2020 as supply chain struggles to keep up

WASHINGTON — Lockheed Martin will throttle back the pace of F-35 production on May 23, leaving it anywhere from 18 to 24 jets short of the 141 scheduled for delivery this year.

The COVID-19 pandemic has made it more difficult for Lockheed's supply chain to make components on time, and as a result the company is moving to an adjusted work schedule where production will slow over the next three months, said Greg Ulmer, Lockheed's vice president for the F-35 program.

Ultimately, Lockheed aims to accelerate production as soon as possible and hopes to decrease the number of aircraft that will delivered late. However, Ulmer said there are too many variables to say precisely how long buyers will be left waiting for their F-35s.

“If I have the ability to speed up or recover sooner, then I will do so,” Ulmer said. “If there are other unknown COVID-19 impacts that I don't know about that come on the horizon — I don't know that either. ... As we go forward, probably late summer or early fall, we'll have a pretty good sense of where we're going to be.”

Beginning on May 23, Lockheed will divide the approximately 2,500 employees who staff the F-35 production line in Fort Worth, Texas, into three groups, moving them to new schedule where each group works for two weeks and then has a week off. After one three-week rotation, the company will determine whether the system is successful and can either alter the schedule or continue until Sept. 4, it said in a statement.

Rotating smaller groups of employees on the line allows Lockheed to move to a slower pace of operations while at the same time ensuring that workers retain their expertise and don't need to be retrained when the production rate returns to normal, Ulmer said. “It really maximizes our ability to recover production on the backside and retain our workforce with no loss of learning.”

Lockheed Martin executives first disclosed that F-35 deliveries could be delayed during an April 21 earnings call with investors.

“There are local distancing requirements that are being more stringently applied across the globe. There is workforce disruption,” Kenneth Possenriede, the company's chief financial officer, said at the time. “We've actually had some issues with shipping constraints.”

Most of the supply chain pressure on the program stems from constraints on low-tier suppliers that produce components that feed into larger portions of the F-35. While the production line tries to do as much work on each section as possible, workers are having to slow down and wait for missing parts to arrive, Ulmer said.

Lockheed has also had challenges getting connectors for the jet on time — another problem that makes it difficult for the company to merge F-35 sub-assemblies into a finished aircraft, Ulmer said.

Once aircraft are completed and go through acceptance testing, the sequence of deliveries will remain the same, he said.

The slowdown of the F-35's production rate comes days after President Donald Trump voiced support for moving more of the jet's production to the United States. Currently, international partners who helped fund development of the F-35 can compete for work on the jet, reducing the cost of the aircraft and giving foreign buyers an industrial incentive to support the program.

“The problem is if we have a problem with a country, you can't make the jet. We get parts from all over the place. It's so crazy. We should make everything in the United States,” Trump said on Thursday.

However, the industrial challenges currently faced by Lockheed do not appear to be caused by the international supply base. Ulmer said European suppliers, who were hardest hit before the United States, are now rebounding from the pandemic.

“I really see Europe kind of [on the] leading edge of the recovery side of this,” he said.

In particular, northern Italy struggled with high numbers of confirmed COVID-19 cases, leading Italian defense firm Leonardo, which runs an F-35 final assembly and check out plant in Cameri, to shut down operations over a two day period in March to clean the facility. With the number of new cases receding, Italy began reopening nonessential businesses this month.

“Leonardo today is north of 90 percent manned, fully operating. They're pretty much back to normal operations,” Ulmer said.

The ongoing expulsion of Turkish suppliers from the F-35 program is also unlikely to be affected by the production slowdown at Fort Worth, as Lockheed has already identified companies to take over that work, he said. “With the vast majority of those, that alternate sourcing has been accomplished. I really don't see this as an impact to that."

Ramping production back up

Unless COVID-19 cases spike in the coming months, Lockheed believes it will be able to return workers to a normal production schedule in the late summer or early fall.

What will vary is timing for when suppliers can return to their usual production rates, and whether those suppliers have the capacity to expedite the manufacturing of key parts, Ulmer said. Once the supply chain has fully recovered, it will take the Fort Wort line two to three months to resume full rate production.

“There are 1,900 suppliers across the program” in the United States, Ulmer said. “So we take all that information in, we determine what rate they can deliver to, we determine if they have any kind of constraints we can help them deal with, and then we have to balance that into the production system to dial in the production rate we can execute.”

“I am optimistic that the majority of industry is on the backside. I'm reluctant to say that because there could be a rebound,” Ulmer said, “but we're at the very back end of the impact.”

https://www.defensenews.com/breaking-news/2020/05/19/lockheed-to-slow-f-35-production-as-supply-chain-struggles-to-keep-up

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23 juillet 2020 | International, Terrestre

Private equity firm buys Humvee-maker AM General
By: Joe Gould and Jen Judson WASHINGTON — Humvee-maker AM General has been acquired by KPS Capital Partners, a private equity firm known for buying financially distressed manufacturers, the companies announced Wednesday. KPS acquired AM General of South Bend, Indiana, from MacAndrews & Forbes in a deal in which terms were not disclosed. AM General has largely been stagnant since losing the competition for the U.S. Army's Joint Light Tactical Vehicle in 2015 to Oshkosh. Following its loss in the JLTV competition, the company turned to the international market to continue growing its Humvee business, such as through offering to foreign customers a multipurpose truck with a military-grade rolling chassis from its Humvee design with a la carte add-ons. KPS Partner Jay Bernstein said in a joint statement that the firm would continue to work with AM General's chief executive, Andy Hove, as well as its management and employees “to build on this great platform, organically and through acquisition.” “We intend to leverage the Company's commitment to research, technology, innovation and new product development, as well as its heritage and iconic brand name,” Bernstein's statement read. Hove said the firm would work with KPS “to continue to execute our strategy and invest in our very ambitious growth plan.” “KPS' demonstrated commitment to manufacturing excellence, continuous improvement and commitment to invest in technology and innovation will only enhance the Company's ability to compete in today's military and commercial marketplace,” Hove said. “Plenty of industrial companies and investment firms had considered buying AM General,” James Hasik, senior fellow at the Center for Government Contracting at George Mason University, told Defense News July 22. “And plenty of companies have considered teaming with AM General for a bid on a forthcoming production program.” AM General has continued to try to adapt to the needs of the U.S. military, bringing a robotic combat vehicle to an Army demonstration last year as the service mulls the future of robots on the battlefield. The company also competed for the Squad Multipurpose Equipment Transport vehicle program but was not selected. Yet, AM General has remained a single-product firm with the Humvee, Hasik noted, and the future of the Humvee is “hard to call.” Many militaries around the world use Humvees, and the U.S. Army plans to keep some in its fleet, but the U.S. Marine Corps is divesting its stock. According to Hasik, it's possible that since the Humvee is less expensive than the JLTV and would likely be relegated to noncombat roles, the Army might choose to purchase pickup trucks instead. “The Humvee was developed in part because the Army's pickup trucks of the 1970s were unimpressive, but that was 50 years ago, and automotive technology has advanced,” he said. “Today's pickup trucks are much cheaper to buy and operate, and that's what the Canadian Army has done.” While AM General has come up with some novel ideas, “nothing has stuck,” Hasik said. For several years, the company has shown up at trade shows touting a howitzer on a Humvee, like it did at London's DSEI exposition in late 2019. Still, the U.S. Army is struggling to figure out how it would fit into formations. The good news for KPS is that the company has a running factory with “efficient, medium-speed production of 4x4 military trucks and a production team who know how to do that,” Hasik said. “That's an important skill set, as it works better for military programs than enlisting a pickup truck factory, which must make them in the hundreds of thousands to make money.” AM General has advertised on its website that it could build bigger trucks, and the Army has just issued a request for information for a program to replace all of its heavy trucks, Hasik pointed out. “It could also build small trucks, similar to the Humvee, for future autonomous applications. There's no guarantee, but we might see lots of those in a few years.” “All in all, I suspect that KPS didn't buy AM General just to wring some more efficiencies out of the Humvee program. The folks there probably see some of these upside possibilities as well,” he added. https://www.defensenews.com/land/2020/07/22/private-equity-firm-buys-humvee-maker-am-general/
16 septembre 2021 | International, Terrestre, C4ISR

« Le laser fait rêver les militaires de tous les pays » selon le PDG de Lumibird
Dans une interview accordée à La Tribune, Marc Le Flohic, PDG de Lumibird, évoque les raisons de la montée en puissance des armes laser dans la défense. Maîtriser leur technologie présente un grand intérêt par rapport aux armes traditionnelles : « c'est une arme extrêmement précise, beaucoup plus rapide, plus simple dans son utilisation (pas de balistique) et moins chère à l'usage. Elle n'est pas non plus soumise aux contraintes du vent. C'est pour cela qu'elle fait beaucoup rêver les militaires de tous les pays », détaille le dirigeant. En juillet dernier, Lumibird est entré au capital de CILAS, filiale d'ArianeGroup, à hauteur de 37%. « CILAS est pour nous une brique importante dans la construction d'un pôle souverain dans le domaine de la défense et du spatial, positionné sur les sous-systèmes et les composants. Notre ambition est de développer une offre transverse pour alimenter l'ensemble des intégrateurs français et européens et d'assurer à cette capacité une production totalement souveraine en France afin d'éviter des restrictions, notamment au niveau des réglementations ITAR. En outre, nous pourrions continuer à innover en transférant de nouvelles technologies qui viennent du monde civil - technologies de laser à fibre - vers le monde de la défense », détaille Marc Le Flohic.
5 octobre 2018 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Contract Awards by US Department of Defense - October 4, 2018
NAVY Asturian-Consigli JV LLC,* Virginia Beach, Virginia (N40085-18-D-1124); Edifice LLC, doing business as Edifice Solutions,* Beltsville, Maryland (N4008-18-D-1125); ED DesignBuild LLC,* Germantown, Maryland (N40085-18-D-1126); HCG-JCG JV,* Escondido, California (N40085-18-D-1127); and Military and Federal Construction Co. Inc.,* Jacksonville, North Carolina (N40085-18-D-1128), were each awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity multiple award contract for general construction projects in the Hampton Roads area of Virginia. The maximum dollar value for all five contracts combined is $249,000,000. The work to be performed provides for, but is not limited to, new construction, renovation, alteration, and repairs for general construction projects. Types of facilities include, but are not limited to warehouses, training facilities, personnel support and service facilities, housing facilities, etc. Asturian-Consigli JV LLC is awarded initial task order at $2,947,636 for the foundation and crawl space repairs at the advanced electronic guidance and instrumentation system facility (V-10) on Wallops Island, Accomack County, Virginia. Work for this task order is expected to be completed by December 2019. All work on this contract will be performed in the Naval Facilities Engineering Command, Mid-Atlantic Hampton Roads area, Virginia. The term of the contract is not to exceed 60 months, with an expected completion date of September 2023. Fiscal 2018 operations and maintenance, (Navy) contract funds in the amount of $2,967,636 are obligated on this award and expired at the end of fiscal 2018. Future task orders will be primarily funded by operation and maintenance, (Navy) and military construction. This contract was competitively procured via the Navy Electronic Commerce Online website, with 19 proposals received. These five contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity. (Awarded Sept. 29, 2018) MacDonald-Bedford | MBP JV,* Alameda, California, was awarded a maximum amount $98,000,000 indefinite-delivery/indefinite-quantity contract to provide construction management services in support of the Guam Defense Policy Review Initiative (DPRI) Program. The work to be performed will support the existing Naval Facilities Engineering Command (NAVFAC) workforce capabilities and provide increased capability to support construction projects and associated efforts undertaken by NAVFAC Pacific. The outcome to be achieved is the hiring of temporary supplemental construction management and engineering technician services. No task orders are being issued at this time. Work will be performed primarily in the Marianas region of operation (to include the following islands but not limited to: Guam, Tinian, Pagan, Palau, Chuuk, Saipan, and Northern Mariana Islands) (80 percent); Australia (10 percent); and Hawaii (10 percent), and is expected to be completed by September 2023. Fiscal 2018 operations and maintenance (Navy) contract funds in the amount of $10,000 are obligated on this award and expired at the end of fiscal 2018. Future task orders will be primarily funded by operation and maintenance (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website, with six proposals received. The Naval Facilities Engineering Command, Pacific, Pearl Harbor, Hawaii, is the contracting activity (N62742-18-D-1171). (Awarded Sept. 29, 2018) Davcon Inc.,* Virginia Beach, Virginia (N40085-18-D-1149); Delaware Corp.,* Topping, Virginia (N4008-18-D-1150); Doyon Project Services,* Federal Way, Washington (N40085-18-D-1151); Rand Enterprises,* Newport News, Virginia (N40085-18-D-1152); and Within Interior Design Inc., doing business as Tazewell Contracting,* Norfolk, Virginia (N40085-18-D-1153), were each awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity multiple award contract for heating, ventilating and air conditioning construction projects in the Hampton Roads area of Virginia. The maximum dollar value for all five contracts combined is $95,000,000. The work to be performed will primarily consist of new construction, demolition, repair, alteration, and renovation of heating, ventilating and air conditioning equipment, systems and infrastructure to include system components such as fans, motors, ductwork, controls, pumps, piping, supports, and insulation. Types of facilities on which work will be performed include administrative/industrial buildings, maintenance shops, warehouses, hangars, communications facilities, personnel support/instructional buildings, recreational facilities, lodging/dormitory facilities, medical clinics, training areas, indoor ranges, etc. Davcon Inc. is being awarded initial task order at $148,400 for the replacement of a chiller at Building 3889 at Joint Expeditionary Base Little Creek-Fort Story, Virginia Beach, Virginia. Work for this task order is expected to be completed by February 2019. All work on this contract will be performed in the Naval Facilities Engineering Command, Mid-Atlantic Hampton Roads area, Virginia. The term of the contract is not to exceed 60 months, with an expected completion date of September 2023. Fiscal 2018 operations and maintenance (Navy) contract funds in the amount of $168,400 are obligated on this award and expired at the end of the fiscal 2018. Future task orders will be primarily funded by operations and maintenance (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website, with 11 proposals received. These five contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity. (Awarded Sept. 29, 2018) A&H-Ambica JV LLC,* Livonia, Michigan (N40085-18-D-8733); Building Associates Inc.,* Bloomington, Indiana (N4008-18-D-8734); Federal Construction Group Inc.,* San Diego, California (N40085-18-D-8735); Krempp Construction Inc., Jasper, Indiana (N40085-18-D-8736); Midnight Sun Global Services LLC,* South Bend, Indiana (N40085-18-D-8737); and SEI Group Inc., Huntsville, Alabama (N40085-18-D-8738), were each awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity multiple award contract for general construction projects in Crane, Indiana. The maximum dollar value for all six contracts combined is $95,000,000. The work to be performed provides for, but is not limited to, new construction, demolition, repair, alteration, and renovation of buildings, systems and infrastructure and may include civil, structural, mechanical, electrical, fire protection, and communication systems. Types of facilities include administrative, industrial, maintenance, warehouses, communications, personnel support, recreation, lodging, medical, training, ranges, roads, etc., in support of the Naval Facilities Engineering Command, Public Works Department Crane, Indiana. A&H-Ambica JV LLC is awarded initial task order at $1,876,276 for the renovation of Building 2724 Break Room Renovation at Public Works Department Crane, Indiana. Work for this task order is expected to be completed by October 2019. All work on this contract will be performed in the Naval Facilities Engineering Command, Mid-Atlantic Public Works Department Crane, Indiana area of responsibility. The term of the contract is not to exceed 60 months, with an expected completion date of September 2023. Fiscal 2018 Navy working capital contract funds in the amount of $1,901,276 are obligated on this award and expired at the end of fiscal 2018. Future task orders will be primarily funded by operations and maintenance (Navy); and military construction. This contract was competitively procured via the Navy Electronic Commerce Online website, with 19 proposals received. These six contractors may compete for task orders under the terms and conditions of the awarded contract. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity. (Awarded Sept. 29, 2018) DEFENSE LOGISTICS AGENCY BP Products North America Inc., Chicago, Illinois, has been awarded a maximum $47,075,766 fixed-price with economic price adjustment contract for aviation fuel. This was a competitive acquisition with 19 offers received. This is a one-year base contract with no option periods. Location of performance is Singapore, with a Dec. 31, 2019, performance completion date. Using military services are Army, Navy, and Air Force. Type of appropriation is fiscal 2019 defense working capital funds. The contracting agency is Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE602-19-D-0452). Olgoonik Technical Services LLC, Anchorage, Alaska, has been awarded a maximum $11,579,403 modification (P00027) exercising the third one-year option period of a one-year base contract (SP3300-16-C-5001) with four one-year option periods for warehousing and distribution support services. This is a fixed-price-incentive firm contract with cost-reimbursement line items. The modification brings the total cumulative face value of the contract to $40,706,113 from $29,126,709. Locations of performance are Alaska and California, with an Oct. 15, 2019, performance completion date. Using customer is Defense Logistics Agency. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Distribution, New Cumberland, Pennsylvania. AIR FORCE Onvoi LLC, De Funiak Springs, Florida, has been awarded a $39,951,581 contract for base operating services at March Air Reserve Base, California. This contract provides for all personnel, supervision, equipment, tools, materials, supplies, test equipment, and other items and services necessary to accomplish supply, vehicle operations and maintenance, traffic management, real property maintenance, fuels management, and airfield management. Work will be performed at March ARB, California, and is expected to be completed by Oct. 31, 2023. This award is the result of a competitive acquisition and 10 offers were received. Fiscal 2019 operations and maintenance funds in the amount of $8,106,974 are being obligated at the time of award. Air Force Reserve Command Robins Air Force Base, Georgia, is the contracting activity (FA4664-19-C-0001). CORRECTION: The Sept. 28, 2018, announcement of a $1,051,818,540 cost-plus-fixed-fee contract award to The Aerospace Corp., El Segundo, California (FA8802-19-C-0001), for Federally Funded Research and Development Center support, was not for a contract modification. All other information in the announcement is correct. ARMY Oshkosh Defense LLC, Oshkosh, Wisconsin, was awarded a $16,038,473 modification (P00151) to contract W56HZV-15-C-0095 for spares acquisition integrated with production. Work will be performed in Oshkosh, Wisconsin, with an estimated completion date of Dec. 31, 2018. Fiscal 2018 procurement Marine Corps; and other procurement, Army funds in the amount of $16,038,473 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1654951/source/GovDelivery/

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