29 avril 2020 | International, Naval
By PAUL MCLEARY
WASHINGTON: Navy leaders and defense industry execs are worried about the effect the COVID-19 pandemic is having on their supply chains, potentially interrupting critical repair and refit availabilities that could have knock-on effects on deployment schedules.
The Navy's acquisition chief James Geurts told reporters recently that so far, industry is “holding pretty good on near-term milestones,” but he's worried about long-term effects on ship repair and the industry's ability to keep pace.
However, the pandemic seems to be having some beneficial effects.
“Part of my goal for our team is not to recover necessarily to where we were,” before COVID-19, but to change some fundamentals of how the Navy's business gets done, he said. With most of the Navy acquisition force teleworking, “we're basically 32 percent ahead on contract awards,” of where they planned to be at this point in the year. “And so, that means there are processes that are working much more efficiently now than they were before, so I want to capture those,” he said.
The Navy and shipbuilders are trying to do the same thing in the shipyards where “maybe different techniques will allow us to gain some efficiency while also creating some resiliency,” that will help weather any future disruptions and setbacks.
The big shipbuilders like Huntington Ingalls and Bath Iron Works are staggering shifts and allowing liberal leave and teleworking without suffering much disruption so far, company officials have said.
Geurts said the lessons they're learning could lead to the conclusion that, “we cannot operate the way we used to operate, which had a lot of fragility and brittleness as we're seeing right now. It's got to drive to the way we need to operate in the future, which has to have resiliency for whatever disruption that might come up. That's what we're really trying to watch closely and think two or three phases ahead, and not just get caught up in managing today's crisis.”
Even before COVID-19 tore through the global economy, the Navy was looking at ways to save money on repairing ships. Last month the service backtracked on plans for a classwide service-life extension project for its Arleigh Burke-class destroyers that would have added a decade to their 35-year service lives.
Not keeping the Burkes longer, and saving on their life-extension upgrades, would free up money for the Navy to buy more unmanned systems and other smaller ships to fit into plans Defense Secretary Mark Esper is making with Navy leadership for a smaller, faster, more stealthy fleet.
To that end, the service has been working on changing how it awards ship maintenance contracts, and is working to “bundle” multiple ship repair contracts together to give industry a more predictable work schedule, allowing them to plan long-term. “Ultimately, getting them bundles is the key to us being successful delivering these [ships] on time,” the commander of Naval Sea Systems Vice Adm. Thomas Moore said last month at the annual McAleese and Associates Defense Programs Conference.
Awarding several ship contracts at once will allow the shipbuilder to stockpile parts and arrange work schedules in a more efficient and rational manner, as opposed to the one-off, last-minute contracts the Navy has traditionally awarded for ship repair.
“Industry is rational. That's what I tell everybody — you may not like every decision they make, but the decisions most always are very, very rational,” Moore said.
In the end, “we've got to manage our way through delay and disruption, but really focus on steepening the recovery and reinvention phase to get into the place we need to be,” Geurts said. “I think there are ways we can come out of this much more resilient, but you know it's hard to change bureaucracy and institutional ways of doing business [to] make sure that this disruption doesn't go to waste.”
https://breakingdefense.com/2020/04/navy-acquisition-boosts-ship-contract-awards-under-covid-19
31 août 2021 | International, Naval
Italian shipyard Fincantieri is holding early talks with Italy's Leonardo to acquire its naval gun manufacturing operation, formerly known as Oto Melara.
10 juillet 2019 | International, Aérospatial
By: Andrew Chuter LONDON – Britain is planning to invest up to $162 million developing three directed-energy weapon demonstrators, including one aimed at killing drones, the Ministry of Defence has announced. The MoD said it had notified industry this week, in what is called a Prior Information Notice, of its intention to procure two laser-based demonstrators and a radio-frequency weapon to “explore the potential of the technology and accelerate its introduction onto the battlefield.” The British look to start the procurement process later this year and hope to have the new systems ready for trials in 2023. A spokesman for the MoD said it's too early to talk about any other timelines or exactly how the weapons development work will be procured. In a statement the MoD said it was forming a new joint program office and is now recruiting personnel to manage the program. The demonstrators are part of the MoD's ‘Novel Weapons Programme,' which is responsible for the trial and implementation of innovative weapon systems. The new arms are expected to reach the frontline within 10 years. The British already have a laser-based technology development effort underway. A £30 million ($37 million) technology demonstrator program known as Dragonfire was awarded to an industry consortium in 2017. Missile maker MBDA, Qinetiq, BAE Systems, Leonardo and others are involved in the industrial effort. The Defence Science and Technology Laboratory is leading the effort from the MoD side. Initial trials on Dragonfire are scheduled to take place this year. The spokesman said that while Dragonfire is about “assessing the viability of the technology, the new work will be looking at issues like size, functionality and exactly how they integrate on existing platforms.” The new program will include two high-energy laser demonstrators. One onboard a ship for air and surface defense applications and a similar laser mounted on a land vehicle for short-range air defense and counter-surveillance applications. The third program is aimed demonstrating a high-power radio frequency weapon mounted on a land vehicle against aerial drones and to counter enemy movements. The weapon is designed to disrupt and disable an adversary's computers and electronics. The MoD statement said Britain already has over 30 years' experience in radio-frequency and directed- energy weapons “during which time the UK has become a world leader in developing new power generation technologies and a global hub for the performance testing and evaluation of these systems.” “The new systems are expected to be trialed in 2023 on Royal Navy ships and Army vehicles but, once developed, both technologies could be operated by all three services. The armed forces will use these exercises to get a better understanding of DEW, test the systems to their limits, and assess how they could be integrated with existing platforms," said the MoD. The MoD released images of the laser weapons mounted on a Type 26 frigate and a Wildcat naval helicopter. The new program still leaves the British playing catch-up in the deployment of laser weapons. The U.S. Navy trialed a laser weapon on an operational warship several years ago and is now planning to install a high-energy laser and integrated optical dazzler with surveillance system on the destroyer Preble in 2021. On the land side, German defense contractor Rheinmetall has been developing a laser weapon for several years and recently undertook comprehensive trials with a weapon station suitable for mounting on a platform like a Boxer armored vehicle. https://www.defensenews.com/global/europe/2019/07/09/uk-shoots-for-new-laser-weapons-against-drones-missiles/
5 février 2020 | International, C4ISR
By: Jill Aitoro WASHINGTON — L3Harris Technologies could divest up to 10 percent of the company, according to CEO Bill Brown, as its recent decision to sell its airport security business for $1 billion is seen as the first of more transactions expected to refine the firm's portfolio. L3Harris signed a definitive agreement to sell the business unit to Leidos, according to an announcement Tuesday. The transaction is expected to close in mid-2020, barring any issues tied to regulatory approvals. Proceeds from the divestiture are expected to be used to repurchase shares and offset dilution. The deal is part of a larger strategy to reshape the portfolio, focusing on what Brown described on a call with analysts as “high-margin, high-growth, technology-differentiated businesses where we can win and generate attractive returns.” “Although this is the first and largest transaction we're contemplating, our portfolio-shaping process is ongoing and may ultimately result in 8-10 percent of total company revenue being divested over time,” he said. The company's 2019 revenue of $18.1 billion could translate to as much as $1.8 billion in divestitures. Brown told Defense News in June 2019 — one month before the merger of Harris and L3 Technologies was completed — about plans to divest a “pretty significant” piece of the business in the first six months as a single company. “Anytime you put two companies with two portfolios together and you rethink what strategy you want to accomplish, there's going to be some pieces of the portfolio at the back end of the bus,” Brown said at the time. “We have to look at where we want to put our management time, capital, and [research and development] investment. We can't put it on pieces that might not be as strategic." Brown told analysts that the deal would not impact the company's $3 billion free cash flow target in 2022. That in theory would set up L3Harris for a sizable acquisition down the road, should the company choose to go in that direction. A company spokesman could not comment on the specific defense-nondefense split post divestiture, but L3Harris would presumably see a larger slice of the business focusing on defense opportunities. In the 2019 Defense News Top 100 list of the largest defense companies, Harris and L3 reported 72 percent and 81 percent of revenue as defense-focused, respectively. L3Harris reported $18.1 billion in fiscal 2019 revenue. Once the deal with Leidos closes, the airport security businesses' $500 million in annual revenue would transition off the books. That said, L3Harris is forecasting 5-7 percent revenue growth in 2020 — so it won't be a straight reduction. https://www.defensenews.com/industry/2020/02/04/l3harris-looks-to-shed-as-much-as-10-percent-of-company