What the Pentagon should (and should not) get in the next stimulus bill

Sur le même sujet

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  2 juillet 2019 | International, Naval

  Three companies awarded $1.8B to support Navy shipbuilding programs

  By Allen Cone June 27 (UPI) -- Three companies -- BAE System Technology Solutions and Services Inc., Serco and Scientific Research Corp. -- have been awarded combined contracts by the U.S. Navy worth up to $1.8 billion to support the branch's shipbuilding programs, including communications and computers systems aboard vessels. The initially obligated amount on orders will not exceed $747 million throughout the duration of the awarded contracts, the Defense Department said in an announcement Wednesday. The work will be performed aboard new construction aircraft carriers and large deck amphibious ships, including refueling and complex overhaul ships. The programs require integrated work on integrated command, control, communications, computers and intelligence systems, or C4I. This includes logistics, integration, engineering, procurement, fabrication, assembly, test, inspection, zone integration and installation. The integrated capability comprises distributed systems that provide network capabilities, communications, command and control, intelligence, and non-tactical data. The breakdown is $601.5 million for BAE, $608.2 million for Serco and $599.5 million for Scientific, the Pentagon said. Seventy-three percent of the work will be performed in Newport News, Va., 17 percent in Charleston, S.C. and 10 percent in Pascagoula, Miss. Work is expected to be completed by June 2029. No contract funds have been obligated at the time of award. Each company will receive $50,000 on the first task order under each contract, which won't expire at the end of the current fiscal year. Naval fiscal 2017 shipbuilding and conversion, fiscal 2019 shipbuilding and conversion, and fiscal 2019 research and development funds will be obligated. https://www.upi.com/Defense-News/2019/06/27/Three-companies-awarded-18B-to-support-Navy-shipbuilding-programs/5311561636928/

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  30 juin 2020 | International, Aérospatial

  Army Helo Market Pegged at $10 Billion

  By Jon Harper Market opportunities for the Army's helicopter fleet will average about $10 billion per year over the next decade as the service modernizes its rotary-wing assets, according to analysts. The current inventory includes UH-60 Black Hawk utility helicopters, AH-46 Apache attack helicopters, CH-47 Chinook heavy-lift helicopters and UH-72 Lakota light utility helicopters. All but the Lakota are still in production today. Meanwhile, future vertical lift is one of the Army's top three modernization priorities, and it is pursuing two new aircraft: an armed scout platform known as the future attack reconnaissance aircraft, or FARA, and the future long-range assault aircraft, or FLRAA. “The Army's effort to develop and field the next generation of vertical lift aircraft ... will have significant implications for the industrial base,” defense analysts Andrew Hunter and Rhys McCormick wrote in a recent report for the Center for Strategic and International Studies. “Projections show that although there will be a drop-off in the procurement of legacy aircraft in the mid-2020s as FARA and FLRAA full-rate production starts to ramp up, there is still a roughly $8 billion to $10 billion annual addressable Army vertical lift market over the next decade,” they said in the report titled, “Assessing the Industrial Base Implications of the Army's Future Vertical Lift Plans.” FLRAA has an estimated program value of $40 billion, while FARA could be worth about $20 billion. In March, the Army announced it had selected Bell and a Sikorsky-Boeing team for the FLRAA competitive demonstration and risk reduction effort. The winner of that phase is expected to be selected in fiscal year 2022. The service also picked Bell and Sikorsky to continue on in the competition for the future attack reconnaissance aircraft. A “flyoff” for the FARA competition is scheduled for fiscal year 2023, with a production decision expected in fiscal year 2024. Both the FARA and FLRAA platforms are slated to enter production later this decade. Meanwhile, operation and sustainment costs will remain the largest source of Army vertical lift spending over the next 10 years, according to the CSIS report. “There's going to be opportunity [for industry] in kind of the aftermarket side because even as you start to produce the new aircraft, there will still be the enduring platforms that are out” operating as next-generation helicopters come online, said Patrick Mason, head of Army program executive office aviation. “We will still need spares and certain things done within the aftermarket side as this transition would occur,” he added during a recent press briefing. “That drives so much of the supply chain.” Some observers have questioned whether the Army will have enough money to buy high-ticket FARA and FLRAA platforms at the same time given future budget projections. There is also the risk that the programs might go off the rails. “FVL isn't the only game in town, but it is by far the biggest,” Loren Thompson, a defense industry consultant and chief operating officer of the Lexington Institute think tank, wrote in a recent op-ed for Forbes. “If production of legacy rotorcraft ceases to make room for new ones and then FVL fails to deliver, industry might not have enough cash flow to sustain essential skills and suppliers.” Hunter said problems with the future vertical lift initiatives would upend the CSIS market projections. “If you were to take one of those programs out of the equation, that changes the addressable market in two significant ways,” he said. “One is, it shrinks it obviously by pulling out ... multiple billion dollars of investment throughout the 10-year window that we looked at. The other effect that it has is it reduces the competitive opportunity for industry. Right now, you know you've got multiple companies gunning for two aircraft. And even if you went down to one [program] and you were still competing, that's much less opportunity for industry to win in that scenario.” https://www.nationaldefensemagazine.org/articles/2020/6/29/army-helo-market-pegged-at-$10-billion

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  29 octobre 2020 | International, Terrestre

  Boeing has another overrun on the KC-46, but its CEO says there’s reason for hope

  Valerie Insinna   WASHINGTON — Boeing reported another $67 million charge on the KC-46 tanker program in third-quarter earnings disclosed Oct. 28, capping off a difficult quarter defined by continued hardships on its commercial side. The increase in KC-46 costs was “due to continued COVID-19 disruptions and productivity inefficiencies,” Boeing's chief financial officer, Greg Smith, told investors during an earnings call. However, Boeing CEO Dave Calhoun expressed confidence that the program would turn the corner in 2021 and become profitable for the company. “The tanker has been a drag on us for three or four years in every way you can think of with respect to investors,” he said. “But we are continuing to clear the hurdle with our customers with respect to its performance in their fleet and their need for that tanker. "That whole relationship, I believe, will begin to transition next year, and opposed to being a drag on our franchise — which it's been — I believe it will become a strength in our franchise.” Previous charges on the KC-46 program amount to about $4.7 billion — almost equal to the $4.9 billion sum of the company's firm fixed-price contract with the U.S. Air Force, which it signed in 2011. In July, a $151 million charge was attributed to the decline in commercial plane production driven by the COVID-19 pandemic. That slowdown has made it more expensive to produce commercial derivative planes like the KC-46, which is based on the Boeing 767 and made on the same production line in Everett, Washington. Overall, defense revenues slightly decreased to $6.8 billion “primarily due to derivative aircraft award timing,” the company said in a news release. But that impact paled in comparison to Boeing's commercial business, where revenues dropped from $8.2 billion in 2019 to $3.6 billion in 2020. As a result of those continued difficulties, the company plans to lay off an additional 7,000 workers by the end of 2021, Calhoun announced. At that point, Boeing's workforce will have been cut by almost 20 percent, down from 161,000 earlier this year to about 130,000 employees. Smith characterized 2020 has a “year of transition” for defense programs like the MQ-25, T-7 trainer and the Air Force One replacement, which are in development. Once those programs move into production, Boeing expects to see “modest growth,” he said. But Calhoun added that global defense spending is unlikely to greatly increase in the coming years, meaning that growth in Boeing's defense portfolio will be limited. “In fact, we believe there will be pressure on defense spending as a result of all the COVID-related spending that of course governments around the world have been experiencing,” he said. “I don't think we're looking at that world through rose-colored glasses. I expect real pressure on that market.” https://www.defensenews.com/industry/2020/10/28/boeing-has-another-overrun-on-the-kc-46-but-its-ceo-says-theres-some-reason-for-hope/