10 juin 2019 | Information, Aérospatial, Naval, Terrestre, C4ISR, Sécurité, Autre défense

Raytheon Technologies Corporation: UTC, Raytheon make marriage official

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Updated with comments from officials on June 10, 2019, at 9:21 a.m. ET.

WASHINGTON — Raytheon and United Technologies Corporation will officially merge into a new entity called Raytheon Technologies Corporation, with the deal taking place in first half of 2020.

Following Saturday reports that a merger was imminent, the two firms made the news official Sunday, launching a website about the planned all-stock deal. On Monday, Raytheon CEO Thomas Kennedy and UTC CEO Greg Hayes held a conference call, where the two revealed that discussions about a potential merger started in summer 2018, before taking off in earnest this January.

“It's like a mirror,” Kennedy said of UTC, noting both companies invest heavily in new technologies while remaining “platform agnostic.” Hayes added that there is roughly a one percent overlap between the two firms portfolios.

The new company will be roughly 50-50 defense and commercial, with plans to spend $8 billion on R&D after combining. Much of that funding will go towards high-end defense programs, including, per a news release, “hypersonics and future missile systems; directed energy weapons; intelligence, surveillance, and reconnaissance (ISR) in contested environments; cyber protection for connected aircraft; next generation connected airspace; and advanced analytics and artificial intelligence for commercial aviation.”

The new firm has a “tremendous opportunity to invest” in the future, Hayes said. “The resources of the combined company will allow us to do things on a stand alone basis that would have been very difficult” individually.

Hayes also expressed his belief the Pentagon would not see major issues, given the limited overlap. However, other trouble may be brewing; during a Monday interview with CNBC, U.S. President Donald Trump expressed concern about the agreement.

While being billed as a “merger of equals,” UTC shareowners will own approximately 57 percent and Raytheon shareowners will own approximately 43 percent of the combined company.

A spokesperson for Raytheon confirmed to Defense News Sunday that the combined company will be based in the greater Boston area. Raytheon is based in the Boston suburb of Waltham, while UTC is based in Farmington, Conn.

Per a news release, the new company will have approximately $74 billion in pro forma 2019 sales. The release also highlights that the merged company will be a major player in both the defense and commercial aerospace markets, giving greater market resiliency.

Byron Callan, a defense analyst with Capital Alpha Partners, wrote Sunday in a note to investors that the merger may be a sign of market trends to come.

“An RTN-UTX deal may be a signal (a siren?) that 1) this U.S. defense cycle is peaking, and firms need to start repositioning for growth in 2021 and beyond; 2) Maybe the commercial aerospace outlook is looking wobbly too and Western firms need to hedge against fallout from a U.S.-China trade split. A U.S. recession is overdue; 3) Defense firms will need to fund more of their own R&D in the future so joining a larger firm will limit margin pressure which could be evidenced in the 2020s,” Callan wrote.

Callan also sees “some overlap in the defense portfolios” for the two companies, primarily through the Mission Systems segment of Collins Aerospace. That could require some small divestitures down the road as the deal is finalized, but there do not appear to be any major issues that would lead to objections from the Pentagon.

“Both are active in defense communications, though Collins has a larger share. Both have imaging/IR products, though Raytheon has a larger product offering,” he wrote. “Collins provides large space imaging mirrors used in surveillance satellites but it's not clear to us if there is an overlap with Raytheon's classified space payload work.”

The deal should create a mammoth defense contractor second only to Lockheed Martin. Raytheon already ranked number two on the most recent Defense News Top 100 list, with $23.5 billion in defense revenues, 93 percent of its overall revenue total; UTC has $7.83 billion in defense revenues, a mere 13 percent of its overall figures.

However, that UTC number came before its acquisition of Rockwell Collins and its $2.28 billion in defense revenues, which will naturally increase United's overall number.

The move comes after 18 months of major defense consolidation. In addition to UTC's move on Rockwell, there was the General Dynamics acquisition of CSRA, Northrop Grumman's acquisition of Orbital ATK, and L3 and Harris announcing in Oct. 2018 that they would combine to form what at the time appeared to be the seventh largest global defense firm.

https://www.defensenews.com/industry/2019/06/09/raytheon-technologies-corporation-utc-raytheon-make-marriage-official/

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  • Contract Awards by US Department of Defense – September 17, 2020

    18 septembre 2020 | Information, Aérospatial, Naval, Terrestre, Sécurité, Autre défense

    Contract Awards by US Department of Defense – September 17, 2020

    NAVY Collins Aerospace, Cedar Rapids, Iowa, is awarded a $316,733,831 modification (P00015) to previously awarded firm-fixed-price contract N00421-18-D-0004. This modification exercises an option for the procurement of 11,313 AN/ARC-210(v) radios for installation in over 400 strategic and tactical airborne, seaborne and land based (mobile and fixed) platforms for the Navy, Marine Corps, Army, Coast Guard, other government agencies and Foreign Military Sales customers. Work will be performed in Cedar Rapids, Iowa, and is expected to be completed by September 2023. No funds are being obligated at time of award. Funds will be obligated on individual delivery orders as they are issued. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. Marathon Construction Corp., Lakeside, California (N62473-16-D-1802); Granite-Healy Tibbitts JV, Watsonville, California (N62473-16-D-1803); Reyes Construction Inc., Pomona, California (N62473-16-D-1804); Manson Construction, Seattle, Washington (N62473-16-D-1805); and R.E. Staite Engineering Inc.,* San Diego, California (N62473-16-D-1806), are awarded $75,000,000 to increase the aggregate capacity of the previously awarded suite of firm-fixed-price, indefinite-delivery/indefinite-quantity, multiple award construction contracts. The maximum dollar value including the base year and four option years for all five contracts combined is increased from $240,000,000 to $315,000,000. The contracts are for new construction, repair and renovation of various waterfront facilities at various locations predominantly within the Naval Facilities Engineering Command (NAVFAC) Southwest area of responsibility (AOR). Work will be performed predominantly within the NAVFAC Southwest AOR including, but not limited to, California (98%), and will be available to the NAVFAC Atlantic AOR (2%) as approved by the contracting officer. No funds are being obligated on this award and no funds will expire. Future task orders will be primarily funded by military construction (Navy); operations and maintenance (O&M) (Navy); O&M (Marine Corps); and Navy working capital funds. The original contract was competitively procured via the Navy Electronic Commerce Online website, with 13 proposals received. NAVFAC Southwest, San Diego, California, is the contracting activity. Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $70,847,707 modification (P00023) to previously awarded cost-plus-incentive-fee contract N00019-19-C-0010. This modification provides requirements decomposition through system functional review for the F-35 Super Multi-Function Aircraft Data Link Band 5 receiver warning capability in support of the Navy, Air Force, Marine Corps, and non-Department of Defense (DOD) participants. Work will be performed in Nashua, New Hampshire (35%); San Diego, California (20%); Fort Worth, Texas (20%); Baltimore, Maryland (15%); and Hunt Valley, Maryland (10%), and is expected to be completed by June 2023. Fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $821,960; fiscal 2020 research, development, test and evaluation (Air Force) funds in the amount of $821,960; non-DOD participant funds in the amount of $356,080 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Testek LLC, Wixom, Michigan, is awarded a $38,071,331 firm-fixed-price, indefinite-delivery/indefinite-quantity contract. This contract is for the production and delivery of up to 42 Aircraft Generator Test Stands (AGTS), 41 for the Navy and one for a Foreign Military Sales customer. The AGTS will be used to conduct full functional testing of the new F/A-18E/F and EA-18G G4 generator converter units, the V-22 Constant Frequency Generator and Variable Frequency Generator, the ALQ-99 Ram Air Turbine Generator and generators tested by the legacy Aircraft Engine Component Test Stand (AECTS) at those sites where the AECTS is being replaced by the AGTS. Work will be performed in Wixom, Michigan, and is expected to be completed by September 2026. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was competitively procured via an electronic request for proposal, two offers were received. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-20-D-0048). General Electric Aviation, Lynn, Massachusetts, is awarded a $19,631,873 cost-plus-fixed-fee order (N00019-20-F-0748) against previously issued basic ordering agreement N00019-16-G-0005. This order provides project management as well as recurring and non-recurring engineering support, materials and documentation to implement, manage and report on the B-Sump Additive Manufacturing, Temperature Distortion Sensitivity Test, second source bearing, second source external hose and fittings, Second Source Accessory Gear Box, and emergency oil system elimination cost reduction initiatives in support of the CH-53K T408 engine. Work will be performed in Lynn, Massachusetts (80%); Patuxent River, Maryland (15%); and Evendale, Ohio (5%), and is expected to be completed by December 2024. Fiscal 2018 aircraft procurement (Navy) funds in the amount of $14,997,273; and fiscal 2019 aircraft procurement (Navy) funds in the amount of $4,634,600 will be obligated at time of award, $14,997,273 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. U.S. SPECIAL OPERATIONS COMMAND Battelle Memorial Institute, Columbus, Ohio, received a ceiling increase modification in the amount of $140,000,000 to an indefinite-delivery/indefinite-quantity contract for the production of Non-Standard Commercial Vehicle 2 (H92222-16-D-0043). This modification raises the contract ceiling to $310,000,000 to account for additional emergent Special Operations Forces requirements. The work will be performed in Columbus, Ohio, and is expected to be completed by July 2023. This modification was awarded through a sole-source acquisition in accordance with 10 U.S. Code 2304(c)(1) and Federal Acquisition Regulation 6.302.1. U.S. Special Operations Command, Tampa, Florida, is the contracting activity. MISSILE DEFENSE AGENCY Modern Technology Solutions Inc. (MTSI),* Huntsville, Alabama, is being awarded a noncompetitive cost-plus-fixed-fee contract with a total value of $68,503,410. Under this new contract, the contractor will support the extension of Missile Defense System capabilities through evaluation, identification and maturation of new technologies and future concepts (e.g. hypersonics, cruise missiles, cyber offense and defense, artificial intelligence/machine learning, quantum science, left-through-right-of-launch integration, fully networked command and control and directed energy) to support the Concepts and Performance Lab (CAPL) under the Missile Defense Agency's Advanced Technology initiative. The CAPL program shall support these initiatives by maturing advanced interceptor and sensor concepts models and simulations, algorithm development/implementations, laboratory experiments and/or ground and flight-testing required for technical and operational assessment of capabilities. The work will be performed in Huntsville, Alabama. The period of performance is Sept. 17, 2020, through Sept. 16, 2023, with two one-year options. Fiscal 2020 research, development, test and evaluation funds in the amount of $3,800,000 are being obligated on this award. The Missile Defense Agency, Redstone Arsenal, Alabama, is the contracting activity (HQ0860-20-C-0006). DEFENSE LOGISTICS AGENCY LOC Performance Products Inc.,* Plymouth, Michigan, has been awarded a maximum $47,634,898 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for left and right final drives. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a five-year contract with no option periods. Location of performance is Michigan, with an Aug. 30, 2025, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-20-D-0093). Golden State Medical Supply Inc., Camarillo, California, has been awarded a maximum $10,306,354 fixed-price, requirements contract for Duloxetine HCL DR (hydrochloride, delayed release) capsules. This was a competitive acquisition with three responses received. This is a one-year base contract with four one-year option periods. Locations of performance are California and Spain, with a Sept. 16, 2021, performance completion date. Using customers are Department of Defense, Department of Veterans Affairs, Indian Health Services and Federal Bureau of Prisons. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D2-20-D-0098). ARMY Marinex Construction Inc., Charleston, South Carolina, was awarded a $33,998,700 firm-fixed-price contract for maintenance and new work dredging. Bids were solicited via the internet with four received. Work will be performed in Charleston, South Carolina, with an estimated completion date of July 10, 2022. Fiscal 2020 civil construction funds in the amount of $31,639,750 were obligated at the time of the award. U.S. Army Corps of Engineers, Charleston, South Carolina, is the contracting activity (W912HP-20-C-0008). Benaka Inc.,* New Brunswick, New Jersey, was awarded a $9,162,000 firm-fixed-price contract for design and build renovations and additions for an Army Reserve Center. Bids were solicited via the internet with four received. Work will be performed in Orangeburg, New York, with an estimated completion date of Sept. 7, 2022. Fiscal 2020 operations and maintenance (Army) Reserve funds in the amount of $9,162,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-20-C-0038). General Dynamics Information Technology, Falls Church, Virginia, was awarded an $8,204,786 modification (P00026) to contract W81XWH-17-F-0078 for administrative support services for the U.S. Army Medical Materiel Activity. Work will be performed at Fort Detrick, Maryland, with an estimated completion date of Sept. 30, 2021. Fiscal 2020 operations and maintenance (Army) funds in the amount of $8,204,786 were obligated at the time of the award. U.S. Army Medical Research Acquisition Activity, Fort Detrick, Maryland, is the contracting activity. Zodiac-Poettker HBZ JV LLC,* St. Louis, Missouri, was awarded a $7,516,000 firm-fixed-price contract to design and construct a dining facility for the Veterans Affairs (VA) Law Enforcement Training Center and Eugene J. Towbin Healthcare Center. Bids were solicited via the internet with six received. Work will be performed in North Little Rock, Arkansas, with an estimated completion date of April 12, 2022. Fiscal 2019 VA minor construction funds in the amount of $7,516,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Little Rock, Arkansas, is the contracting activity (W9127S-20-C-6013). DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Strategic Analysis Inc., Arlington, Virginia, has been awarded a $10,040,273 modification (P00008) to previously awarded contract HR0011-19-F-0101 for engineering, artificial intelligence and machine learning, social science, chemistry, physics, mathematics, materials and front office technical and administrative support services. The modification brings the total cumulative face value of the contract to $19,805,466 from $9,765,193. Work will be performed in Arlington, Virginia, with an expected completion date of September 2021. Fiscal 2020 research, development, test and evaluation funds in the amount of $2,237,061 are being obligated at time of award. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity. WASHINGTON HEADQUARTERS SERVICES Logistics Management Institute, Tysons, Virginia, has been awarded a $7,714,127 firm-fixed-price-level-of-effort and time-and-materials contract. The contract provides a broad range of Department of Defense logistics and program support operations to the Assistant Secretary of Defense for Sustainment, the Office of Deputy Assistant Secretaries of Defense for Logistics and the Office of Deputy Assistant Secretaries of Defense for Materiel Readiness. This includes analytic support, meeting facilitation, statistical and data analyses and subject matter expertise in various logistics disciplines and government/commercial supply chain practices; strategic communications; operational contract support; private security contractors; vendor threat mitigation; and strategic integration. Fiscal 2020 operations and maintenance funds in the amount of $7,714,127 are being awarded. The expected completion date is June 25, 2025. Washington Headquarters Services, Arlington, Virginia, is the contracting activity (HQ0034-20-F-0505). AIR FORCE Riverside Research Institute, New York, New York, has been awarded a $7,051,887 cost-plus-fixed-fee contract for the research and development of algorithms and tools to produce high-quality radio frequency modeling data. Work will be performed at Wright-Patterson Air Force Base, Ohio, and is expected to be completed by Sept. 30, 2025. Fiscal 2020 research, development, test and evaluation funds in the amount of $1,140,000 are being obligated at the time of award. Air Force Research Laboratory, Wright-Patterson AFB, Ohio, is the contracting activity (FA8650-20-C-1131). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2352082/source/GovDelivery/

  • The real obstacle for reforming military spending isn’t in the defence ministry. It’s the Treasury Board

    14 novembre 2019 | Information, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    The real obstacle for reforming military spending isn’t in the defence ministry. It’s the Treasury Board

    KEN HANSEN Ken Hansen is an independent defence and security analyst and owner of Hansen Maritime Horizons. Retired from the Royal Canadian Navy in 2009 in the rank of commander, he is also a contributor to the security affairs committee for the Royal United Services Institute of Nova Scotia. For people inside the Department of National Defence, a minority Parliament – coupled with election promises for increased social spending and tax cuts – represents an uneasy calculus. Defence spending is always on the chopping block because it represents the largest pool of discretionary spending in the federal budget, and every party spent the recent federal election campaign being vague about military policy – offering some kind of oversight-body reform or scrutiny over the billions of dollars that have been earmarked, even as they lent their support to ensuring the military has the equipment it needs. In particular, the single largest program in Canadian defence history – the Canadian Combat Ship plan for 15 warships – will be a tantalizing target for politicians looking to get rid of perceived fat. Such cuts to shipbuilding programs have even already become normalized: The order for Halifax-class frigates were trimmed to 12 from 18 in 1983 and the Iroquois-class destroyers to four from six in 1964, to name just two. The political leaders weren't wrong when they said the military procurement system is broken. But regardless of which party had won this past election, and no matter what tweaks at the edges that the Liberal minority government and its potential supporters pursue, the reality is that the core issue remains unaddressed: Treasury Board's bulk approach to purchasing the country's military kit. Treasury Board policy states that bulk buys are how military procurement should be done, to ensure the lowest per-unit cost. But this forces tough decisions about what to buy, since the larger the order, the longer it will take to produce them all – not to mention the problems involved with trying to predict the future of warfare. Information systems become outdated in five years; weapons and sensors in 10. With a planned operating life of 25 years, any ships ordered today will be out-of-date by the time the first are delivered, and fully obsolete by the time the last one arrives. Block purchasing leads to block obsolescence. Traditionally, when technological change threatens to render military systems obsolete, the best way to hedge was to order in batches of the smallest number acceptable. In the years before the world wars, for instance, countries working to build competent naval forces put less emphasis on fleet numbers and more on technology and industrial capacity until the last moments before conflict. Technological competence was as important as numbers for fleet commanders. Another outcome of bulk buys is that the volume means that they happen only every two to three decades (or longer, in the worst cases). With such lengthy dry spells between purchases, it is impossible to retain corporate knowledge in either the defence or civilian branches of government. More frequent purchasing keeps the process alive in both practice and concept, with lessons learned that can be implemented by the same people who made the mistakes in the first place. Such irregularly timed purchases have created desperation among defence planners whose vision of the future consists of short golden days of competence and pride, followed by long years of rust-out and irrelevance. Unwittingly, the dark decades were in large part of the military's own making because of its desperate desire to acquire the absolute best model available – a practice known as “gold-plating” – instead of working steadily to build capacity and skill that would address long-range fleet needs. This is a collision of interests. The Treasury Board looks only at capital-acquisition decisions from the perspective of the buyer. It's left to the military to worry about how long they may have to operate obsolescent or obsolete equipment and systems, and to do the necessary mid-life upgrading, which is partly why costs balloon spectacularly. Life-cycle cost data is actually far more important that the initial sticker shock of the newest and shiniest model advocated by the military's leadership. The mindset needs to change. Politicians who implement bureaucratic change will probably see some improvements in decision-making. But the biggest obstacle to defence procurement is that bulk purchasing is our lone approach, and that it happens only every few decades. Regular, planned capital acquisition is the best path forward, but all paths to the future must first run through the Treasury Board. No amount of political policy adjustment can change that. https://www.theglobeandmail.com/opinion/article-the-real-obstacle-for-reforming-military-spending-isnt-in-the-defence/

  • Canada's Multi-Mission Aircraft Team

    10 juillet 2023 | Information, Aérospatial

    Canada's Multi-Mission Aircraft Team

    Bombardier Defense & General Dynamics Mission Systems–Canada Join Forces to Deliver a Made-in-Canada Solution To deliver the next-generation of multi-mission and anti-submarine warfare aircraft that is the right solution for the Canadian Multi-Mission Aircraft (CMMA) program, Bombardier Defense is partnering with General Dynamics Mission Systems–Canada. Leveraging their combined extensive expertise, these Canadian-based companies are joining forces as Canada’s Multi-Mission Aircraft Team. DISCOVER WHY CMMA MATTERS The solution offered is based on the Global 6500 aircraft, the right-sized jet for the CMMA with next-generation engines, long-range, high endurance, and coupled with proven reliability and superior fuel efficiency as documented in the jet’s recently published Environmental Product Declaration. The aircraft will play home to General Dynamics’ best-in-class integrated mission systems, drawing directly from experience developing and delivering the newly modernized CP140 Block IV and CH-148 Cyclone.   A truly innovative and flexible Canadian solution, that understands the reality of Canada, is the right choice for CMMA. 

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