Nouvelles

By: Aaron Mehta WASHINGTON — Textron Systems has announced its intention to purchase Maine-based Howe & Howe Technologies, a developer of robotic land vehicles, in a move Textron says will position the company to be a “global leader” in autonomous systems. The purchase, which does not have an announced price tag, is expected to close in mid-December. It comes as industry around the world eyes the potential military unmanned ground vehicles market as an area for future growth. Howe produces a number of systems in use by the U.S. government, including the small Ripsaw Super Tank and the RS2-H1 SMET, which was down-selected to compete to be the U.S. Army's platoon load-carrying robot. The company also produces a pair of firefighting unmanned systems, the Thermite and Bulldog. While having some experience in the ground-based unmanned sector, Textron Systems has largely focused on UAVs. Hence, adding Howe's ground systems expertise to its portfolio makes economic sense, said Textron Systems head Lisa Atherton in a company statement. She called Howe the “original disruptors in the advanced robotic vehicle space.” “Textron Systems is now positioned to be a global provider of unmanned capabilities across all three domains. We are clear on the U.S. military's vision and their future technology needs for autonomy, robotics and unmanned systems,” she added. “Bringing together Textron Systems' and Howe & Howe's talent, capabilities and proven products will join two of the best, and we are excited at the idea of advancing the industry even further as one team.” Michael Howe, president of Howe & Howe Technologies, added that “the deep experience and forward thinking of Textron Systems, coupled with the innovation and sheer competitiveness of Howe & Howe, will make for a formidable combination. We expect that the whole will be immeasurably greater than the sum of our parts and will be positioned to forge the 21st century world leader in ground robotics and mobility.” The Pentagon set aside $429 million for unmanned ground systems in fiscal 2019, doubling in just two years from $212 million in FY17 and $310 million in FY18. And while explosive ordnance disposal systems still represent the biggest spending from the Army in this arena, it will likely be overtaken by programs such as the Army Common Robotic Systems and Robotic Ground System Advanced Technology Development. https://www.defensenews.com/industry/2018/10/25/textron-buys-ground-robot-manufacturer-howe-howe

Graham Warwick | Aviation Week & Space Technology From armed scout to heavy lift, modernizing rotorcraft fleets has become a priority for the U.S. Defense Department. But whether the U.S. Army and other services will have the budgets to fulfill its ambitious renewal plans remains to be seen. http://aviationweek.com/defense/guide-us-military-helicopter-modernization

NAVY The Boeing Co., St. Louis, Missouri, is awarded not-to-exceed $131,555,000 for order N0001919F2410 against a previously issued basic ordering agreement (N00019-16-G-0001). This undefinitized contract action is for the procurement and upgrade of weapon replaceable assemblies to optimize the Block I low-rate initial production F/A-18E/F Infrared Search and Track systems, including technical risk reduction in support of engineering change proposal development and F/A-18 integration and tactics development. Work will be performed in Orlando, Florida (73 percent); and St. Louis, Missouri (27 percent), and is expected to be completed in April 2022. Fiscal 2018 aircraft procurement (Navy) funds in the amount of $42,969,654 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. The MIL Corp., Bowie, Maryland, is being awarded an $84,551,798 cost-plus-fixed-fee, cost reimbursable, indefinite-delivery/indefinite-quantity contract for systems engineering, integration/production support, system-based test and evaluation services and in-service life cycle-based engineering support for the Naval Air Warfare Center Aircraft Division's command, control, communications, computers, combat systems, intelligence, surveillance, and reconnaissance mission-based products and systems. Work will be performed in St. Inigoes, Maryland (80 percent); and Patuxent River, Maryland (20 percent), and is expected to be completed in February 2024. No funds are being 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 proposals; one offer was received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-19-D-0002). L3 Technologies Inc., Salt Lake City, Utah, is awarded a $35,757,711 cost-plus-fixed-fee contract to provide for the demonstration and test of existing technologies and associated technical data that may potentially provide a solution for an airborne wideband low radio frequency band jamming application in support of the Next Generation Jammer Low Band (Increment 2) program. Work will be performed in Salt Lake City, Utah (57 percent); Boulder, Colorado (16 percent); Carlsbad, California (9 percent); Stuart, Florida (5 percent); Waco, Texas (1 percent); Reston, Virginia (1 percent); Guthrie, Oklahoma (1 percent); Stow, Massachusetts (1 percent); St. Louis, Missouri (1 percent); and in Europe (4 percent), and is expected to be completed in June 2020. Fiscal 2018 research, development, test and evaluation (Navy) funds in the amount of $14,704,000 will be obligated at time of award, all of which will expire at the end of the current fiscal year. This contract was competitively procured via a broad agency announcement; four offers were received. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-19-C-0014). Northrop Grumman Systems Corp., Bethpage, New York, is awarded a $35,180,752 cost-plus-fixed-fee contract to provide for the demonstration and test of existing technologies and associated technical data that may potentially provide a solution for an airborne wideband low radio frequency band jamming application in support of the Next Generation Jammer Low Band (Increment 2) program. Work will be performed in Linthicum, Maryland (42 percent); Bethpage, New York (38 percent); North Amityville, New York (8 percent); Melville, New York (8 percent); Rolling Meadows, Illinois (1 percent); Hollywood, Maryland (1 percent); Melbourne, Florida (1 percent); and Redondo Beach, California (1 percent), and is expected to be completed in June 2020. Fiscal 2018 research, development, test and evaluation (Navy) funds in the amount of $14,704,000 will be obligated at time of award, all of which will expire at the end of the current fiscal year. This contract was competitively procured via a broad agency announcement; four offers were received. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-19-C-0015). BAE Systems Technology Solutions and Services, Inc., Rockville, Maryland, is awarded $19,470815 for modification P00035 to a previously awarded cost-plus-fixed-fee, cost reimbursable contract (N00421-15-C-0008) to exercise an option for support for Naval Air Warfare Center Aircraft Division's Ship and Air Integrated Warfare Division (Code 4.11.3). Support to be provided includes integrating communications and information systems radio communications into Navy ships. Work will be performed in St. Inigoes, Maryland (75 percent); and California, Maryland (25 percent), and is expected to be completed in August 2023. Fiscal 2019 working capital funds (Navy) in the amount of $5,850,000 are being obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. AIR FORCE Barkens Hard Chrome, Compton, California (FA8224-19-D-0001); Chromal Plating Co. Inc., Los Angeles, California (FA8224-19-D-0002); Kryler Corp., Fullerton, California (FA8224-19-D-0003); Quality Plating Co. Inc., Salt Lake City, Utah (FA8224-19-D-0004); and Sunvair, Inc., Valencia, California (FA8224-19-D-0005), have been awarded a ceiling $98,000,000 multiple award, indefinite-delivery/indefinite-quantity contract for metal plating to remanufacture existing and future assets in support of 309 Missile Maintenance Group and 309 Commodities Maintenance Group programs. Work will be performed at Hill Air Force Base, Utah; Vandenberg AFB, California; and other geographically separated units. This contract is the result of a competitive acquisition and five offers were received. Fiscal 2018 Consolidated Sustainment Activity Group -- Maintenance funds in the amount of $10,000 ($2,000 per awardee) are being obligated at the time of award. Air Force Sustainment Center, Hill AFB, Utah, is the contracting activity. Williams International Co. LLC, Pontiac, Michigan, has been awarded a not-to-exceed $50,000,000 indefinite delivery/indefinite quantity contract for the Advanced Turbine Technologies for Affordable Mission-Capability (ATTAM) Phase I program. The mission of the ATTAM Phase I program is to develop, demonstrate, and transition advanced turbine propulsion, power and thermal technologies that provides improvement in affordable mission capability. Work will be performed in Pontiac, Michigan, and is expected to be completed by October 2026. This award is the result of a competitive acquisition via a broad agency announcement; 54 offers were received. The first task order will be incrementally funded with fiscal 2018 research, development, test and evaluation funds in the amount of $10,000 at the time of award. Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity. (IDIQ contract FA8650-19-D-2064 and initial task order FA8650-19-F-2115). Northrop Grumman Systems Corp., Linthicum Heights, Maryland, has been awarded a $16,512,048 cost-plus-fixed-fee contract for the Precision Real-Time Engagement Combat Identification Sensor Exploitation program. This program will develop technologies that continue to advance combat identification for warfighters. This contract provides for the technical assessments, prototype hardware and software modifications and development, systems engineering, performance simulations, system integration and demonstrations. Work will be performed in Baltimore, Maryland, and is expected to be completed Jan. 31, 2024. Fiscal 2018 research, development, test and evaluation funds in the amount of $400,000 are being obligated at the time of award. Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-19-C-1672). Maintenance Engineers Inc., Phoenix, Arizona, has been awarded an $8,700,000 ceiling, indefinite-delivery/indefinite-quantity contract for grounds maintenance services. This contract provides grounds maintenance services for approximately 4,000 acres of improved and semi-improved grounds. Work will be performed at Hill Air Force Base and Little Mountain, Utah, and is expected to be completed by Oct. 24, 2023. This award is the result of a competitive acquisition and six offers were received. Fiscal 2019 operations and maintenance funds will be obligated at the task order level. Air Force Sustainment Center, Hill AFB, Utah, is the contracting activity (FA8201-19-D-0001). DEFENSE LOGISTICS AGENCY Geo-Med LLC,* Lake Mary, Florida, has been awarded a maximum $35,000,000 firm-fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for medical equipment and accessories for the Defense Logistics Agency electronic catalog. This was a competitive acquisition with 20 responses received. This is a five-year contract with no option periods. Using customers are Army, Navy, Air Force, Marine Corps and other federal civilian agencies. Location of performance is Florida, with an Oct. 24, 2023, performance completion date. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D1-19-D-0001). General Dynamics Land Systems, Sterling Heights, Michigan, has been awarded a $25,658,223 firm-fixed-price delivery order (SPRDL1-19-F-0038) against a five-year contract (SPE7MX-16-D-0100) for various electronic components for the M1 Abrams tank. This was a sole-source acquisition using justification 10 U.S. Code 2304(c)(1), as stated in Federal Acquisition Regulation 6.302-1. Locations of performance are Michigan and Florida, with a Sept. 27, 2022, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan. General Dynamics Land Systems, Sterling Heights, Michigan, has been awarded a $10,229,034 modification (P00002) exercising the one-year option period of a one-year base contract (SPRDL1-18-C-0295) for hull mission processor units with containers. 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 firm-fixed-price contract. Locations of performance are Michigan and Florida, with a Nov. 19, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan. ARMY B & K Construction Co. LLC,** Mandeville, Louisiana, was awarded a $31,260,319 firm-fixed-price contract for West Bank Mississippi River Levee. Bids were solicited via the internet with four received. Work will be performed in New Orleans, Louisiana, with an estimated completion date of Oct. 22, 2021. Fiscal 2019 operations and maintenance, Army funds in the amount of $31,260,319 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity (W912P8-19-C-0004). CORRECTION: An additional contractor has been added to the multiple-award contract announced on Sept. 28, 2018, for providing resources in support of the Joint Program Executive Office for Chemical and Biological Defense to include its headquarters, directorates and five joint project managers. Goldbelt, Chesapeake, Virginia (W911QY-19-D0014), will also compete for each order of the $249,000,000 firm-fixed-price contract. All other information in the contract announcement is correct. *Service-disabled, veteran-owned small business **Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1672761/source/GovDelivery/

by Samantha Ehlinger The Defense Digital Service and Army Cyber Command's growing partnership is getting its own workspace in downtown Augusta, Georgia, DDS announced Thursday. Dubbed Tatooine, the new workspace located at the state-owned Georgia Cyber Center is the expansion of the Jyn Erso pilot project launched last year to join DDS staff and Cyber Command soldiers to solve hard problems. The new space officially opened Thursday with a day-long hackathon “for cyber soldiers and the local tech community,” according to a press release. “Tatooine will be a beacon for technical talent across the military — a place to write code and solve problems of impact,” DDS Director Chris Lynch said in an announcement. “Through this partnership, we are setting our best technical warfighters against our toughest problems with support and training from our DDS software engineers and experts. Together, men and women in uniform and tech nerds are finding new ways to rapidly solve high-impact challenges.” The Army is gradually relocating its Cyber Command headquarters to nearby Fort Gordon. The state's CIO Calvin Rhodes said this week that the center will play host to the unclassified training sessions for personnel who are waiting for their security clearances to be completed, a process that can often take at least six months, sister publication StateScoop reported. The National Security Agency, which has an outpost at Fort Gordon, will also have a presence at the Georgia Cyber Center. Officials said the $100 million development is the single-largest investment by a state in a cybersecurity facility. Tatooine will join Army officers and soldiers with DDS technologists to tackle hard problems in unclassified “startup-like spaces” using private sector tools and methodologies, according to the Pentagon. “For instance, project teams are using concepts of continuous software iteration and user-centered design, which are common in the tech sector, but not in the military,” the department said. Tatooine is a way for DDS and Army Cyber Command to create more pilot teams without having to relocate Cyber Command personnel to Washington D.C. Other planned uses for Tatooine include supporting initiatives like the Hack the Army bug bounty program. Army's Cyber Command and Cyber Center of Excellence are providing the technical soldiers to staff teams and Professional Military Education credit for time spent in the program, according to the announcement. Senior Army officers from the center and the Army Cyber Institute will oversee day-to-day operations in the workspace and report to DDS. “To help the Army resolve its toughest talent management and technical challenges, DDS and U.S. Army Cyber Command (ARCYBER) have partnered to bring technically-gifted soldiers together with private sector civilian talent to rapidly develop immediate-need cyber capabilities,” Lt. Gen. Stephen Fogarty, head of the command, said in a statement. “This innovative partnership will solve tough problems and serve as a powerful retention and recruitment tool.” Through the Jyn Erso program, project teams have already tackled a few projects, such as a program to develop, produce and deploy a capability to combat commercial drones. “The team developed a low-cost software system that is flexible enough to adapt to newly identified targets and easy for operators to use and transport in austere conditions,” the announcement said. DDS and the Cyber Center of Excellence also launched a training pilot earlier this year as part of Jyn Erso to streamline cyber training courses. In its first iteration, DDS cut down the training time for a subset of Army soldiers from six months to just 12 weeks. We know what you're wondering, and yes, the names of the workspace and the pilot are Star Wars references. DDS, since its inception, has referred to itself as the Rebel Alliance ( a shoutout to the good guys in Star Wars), even naming the Pentagon's landmark $10 billion commercial cloud contract the Joint Enterprise Defense Infrastructure, or JEDI. https://www.fedscoop.com/defense-digital-service-army-cyber-command-expand-partnership-workspace-tatooine/

Alexis Pfefferlé Mardi 23 octobre 2018, 0800, Lausanne, entrée en lice des avionneurs américains. Pour rappel, deux avions américains sont en compétition dans le cadre du programme AIR2030, le F/A 18 Super Hornet de Boeing et le F35 de Lockheed Martin. Au menu de cette matinée, le F/A 18 Super Hornet de Boeing. L'avion proposé n'est pas inconnu puisqu'il avait été naturellement envisagé lors de la précédente campagne de renouvellement de la flotte avant que Boeing ne renonce à faire une offre à la Suisse. Boeing avait expliqué à l'époque que « le nouveau Super Hornet est peut-être un avion trop poussé par rapport aux besoins de la Suisse. ». Huit ans plus tard, les besoins exprimés par la Suisse pour son nouvel avion de combat ont évolué et le Super Hornet fait à nouveau office de candidat sérieux. En effet, les F/A 18 Hornet dans leur version C et D sont en service dans les forces aériennes suisses depuis maintenant vingt ans et l'avion est bien connu de nos pilotes et militaires. Quelles différences par rapport au modèle actuel ? Le F/A 18 Super Hornet n'est pas un nouvel avion mais bien une évolution du Hornet que nous connaissons. Il s'agit cependant d'une évolution en profondeur avec une refonte du design, de la signature radar, une mise à jour des systèmes d'armes et de l'électronique embarquée ou encore une augmentation importante de l'autonomie. Aujourd'hui, le F/A 18 Super Hornet E/F est un biréacteur de 4ème génération + disponible en monoplace et biplace comme les variantes C et D de son prédécesseur. Boeing va droit au but La présentation du jour de Boeing est, comme disent les américains, « straight to the point ». Communication à l'américaine oblige, on débute avec un clip vidéo figurant un compte à rebours égrené par une voix féminine à l'issue duquel divers types d'engins fabriqués par Boeing s'élancent dans le ciel dans un panache de fumée incandescent. Sans autre intermède, le représentant de Boeing, Monsieur CRUTCHFIELD, développe directement sur la facilité de transition entre le modèle actuel de l'armée suisse et le Super Hornet, un mois d'entraînement au maximum étant selon lui nécessaire aux pilotes aguerris sur F/A 18 Hornet pour se familiariser avec cette nouvelle version. Quant au matériel d'entretien et à l'armement, il est en partie compatible entre les deux versions. Compte tenu de l'avenir bien incertain des F/A 18 suisses actuels dans le contexte politique tendu des exportations d'armes, le recyclage partiel est un point pour le moins pertinent. Pour Boeing, le Super Hornet est la transition la plus simple et la moins onéreuse pour la Suisse. C'est au tour de Madame Nell BRECKENRIDGE, première femme à s'exprimer pour un constructeur, de prendre le relais. Elle partage premièrement quelques chiffres : Boeing est un géant de l'industrie, qui a l'habitude de l'offset et de travailler avec des partenaires dans le monde entier. Historiquement, l'offset Boeing c'est près de 50 milliards USD dans environ 40 pays depuis 35 ans. Actuellement, c'est 65 collaborations pour un montant de 20 milliards USD dans 20 pays. Efficacité et engagement Viennent ensuite les arguments phares de Boeing pour la Suisse. Premièrement, le géant américain, en tant que constructeur du F/A 18 Hornet, le dernier avion acquis par l'armée suisse, peut s'appuyer sur sa propre expérience dans le cadre du programme offset d'USD 1,3 milliards réalisé en Suisse dans le cadre de l'achat de cet avion en 1997. Détail piquant au pays de la ponctualité, le programme d'offset de l'époque a été complété 3 ans avant le délai prévu. Dans la même veine, un nouveau programme d'offset a été signé par Boeing avec la Suisse en 2009 pour la mise à jour des F/A 18 Hornet, lequel a également été complété, selon Boeing, en avance du calendrier prévu. Au total, toujours selon Boeing, ce sont plus de 600 sociétés suisses qui font ou ont fait affaire avec l'avionneur au cours des vingt dernières années. Sur leur dernier slide de présentation, Boeing déclare : Promises made, promises kept. (Promesses faites, promesses tenues) Tout un programme. https://blogs.letemps.ch/alexis-pfefferle/2018/10/25/air2030-a-la-rencontre-de-boeing-et-du-f-a-18-super-hornet-4-5/

DAVID PUGLIESE, OTTAWA CITIZEN Lockheed Martin Canada has laid off 20 employees in Ottawa and another 11 at its facilities in Montreal and Dartmouth, Nova Scotia. The employees were informed of the layoffs on Oct. 3, according to a Lockheed Martin statement to Defence Watch. Irving Shipbuilding and Public Services and Procurement Canada have announced Oct. 19 that a BAE-Lockheed Martin consortium has been selected as the “preferred bidder” for the Canadian Surface Combatant program. That selection will now set off negotiations which in turn will – if all is successful – produce a contract. The entire project is worth $60 billion, with an estimated 60 per cent for the actual ship. Lockheed Martin Canada is acting as the prime for the team which offered BAE's Type 26 ship. Lockheed Martin did not provide details on what areas the employees who were laid off had worked in. “This decision was not taken lightly and was the result of the company's need to rebalance the workforce reflecting current volume and skill sets,” the Lockheed Martin statement noted. “As a project-driven company, we routinely experience peaks and valleys related to work volume and review our business operations to stay competitive and agile.” Lockheed Martin Canada “remains in a growth mode and as the CSC program progresses, our hiring campaign will ramp up to ensure we attract and retain top talent to best support our customer's needs,” the statement added. Industry sources say some of the layoffs can be attributed to the recent loss of the Halifax-class underwater warfare suite upgrade contract, which went to General Dynamics Mission Systems – Canada. https://ottawacitizen.com/news/national/defence-watch/lockheed-martin-canada-lays-off-20-employees-in-ottawa-11-in-dartmouth-montreal

By: Tom Kington ROME — Italy will cut €450 million (U.S. $512.3 million) from its planned defense spending in 2019 by suspending helicopter and missile purchases and canceling an office move by the defense ministry to help shore up social welfare and tax cuts, a defense source has told Defense News. Italy's total outlay on defense in 2019 will be announced in parliament in the next few days, as Rome's populist government seeks support by members of parliament for its state budget, which contains billions of euros for a new wage for the unemployed. To free up funds to cover spending, Rome has made its cut to the defense budget, just as most European states are increasing their military outlay. During 2019 all ongoing purchases of NH-90 helicopters for the Italian Army and Navy will be suspended, the source said. Italy is planning to buy 60 NH-90s for the Army and 56 for the Navy at a total cost of €4 billion, with the procurement due to wind up in 2024. Upgrades to Tornado aircraft will also be suspended, said the source, who added that the two measures would save €370 million. Italy's purchase of the MBDA Camm-Er missile defense system will also be put off for a year, saving €30 million in 2019, the source added. Another €50 million — to reach the total of €450 million — will come from the cancellation of plans to move the headquarters of Italy's armed forces out of their separate buildings in Rome's city center to a unified HQ in the suburbs. The plan, dubbed ‘Italy's Pentagon,' was due to cost a total of €1.1 billion, the source said. The source added that F-35 purchases would be “slowed” in order to spread out payments. Italy is currently planning to buy 90 aircraft. Italian defense minister Elisabetta Trenta will discuss the plan with U.S. Secretary of Defense Jim Mattis when she visits the United States in November, the source said. The Italian coalition government which took office in June combines the anti-migrant League party with the anti-establishment Five Star party, which has long criticized spending on defense in Italy. A second defense source said that the defense ministry was about to publish its much delayed document breaking down the year's defense spending by program, which is normally released in the spring. The source said the document would this year indicate military procurement programs considered “ethical” by the new government. https://www.defensenews.com/global/europe/2018/10/24/italy-plans-to-slash-half-a-billion-dollars-from-defense-in-2019

By: Ben Werner Lockheed Martin officials say their loss to Boeing in three recent aircraft competitions indicates that Pentagon weapon buyers are valuing low price tags over high-tech capabilities, which may lead the company to question its participation in some future competitions. The company reported strong revenue growth and expected solid earnings in the future, but during a Tuesday morning conference call with Wall Street analysts, company officials sounded burned by losing out on three significant contracts during the recently completed third quarter of 2018. “We do see that affordability is a very important element for them,” said Marillyn Hewson, Lockheed Martin's chief executive, referring to the Pentagon's weapons buyers. In a competition pitting designs from Lockheed Martin, General Atomics and Boeing, the Navy awarded Boeing an $805-million award in August to build the first four unmanned carrier-based aerial refueling tankers, the MQ-25A Stingray. Ultimately, the Navy wants to purchase 72 more vehicles, for a program price of roughly $13 billion. Boeing also beat out Lockheed Martin for a pair of Air Force contracts – $2.38 billion to replace the Air Force fleet of H-1 Huey helicopters, and $9.2 billion for the new fleet of Air Force T-X trainer jets. “We believe our proposals represented outstanding technical offerings at our lowest possible pricing,” Hewson said. “Had we matched the winning prices and been awarded the contracts, we estimate that we would have incurred cumulative losses across all three programs in excess of $5 billion; an outcome that we do not feel would have been in the best interest of our stockholders or customers.” Hewson and Bruce Tanner, Lockheed Martin's chief financial officer, downplayed the long-term significance of missing out on this trio of large contracts. Lockheed Martin reported revenues of $14.3 billion for the quarter, compared to revenues of $12.3 billion a year ago. Earnings for the quarter were $1.5 billion for the quarter, compared to earnings of $963 million a year ago. Increased sales of F-35 Lightning II Joint Strike Fighters as production increases, as well as increased demand for missiles, were vital to the revenue increases. Looking forward, even with Pentagon spending not expected to grow, Tanner expects Lockheed Martin's profits from sales to grow, resulting in cash from operations to remain in the $7-billion range for the next three years. However, neither Hewson nor Tanner masked their disappointment in the selection of Boeing over Lockheed Martin for the three aviation programs. “Those were disappointing for a lot of reasons. But the fact they really decided, all three, on an LPTA (lowest price technically acceptable) basis, didn't help the situation,” Tanner said. “It's not getting the best capabilities for the warfighter in the hands of the warfighter.” A year ago, when discussing the MQ-25 program, Navy officials suggested capability was their primary focus. Cost estimates were specifically not addressed because the Navy wanted to learn what was possible, Rear Adm. Mark Darrah, Program Executive Officer Unmanned Aviation and Strike Weapons, told USNI News in July 2017. “When we put a number out there, eerily they tend to get to that number and go backwards, go backwards in their development, so they hit that number. We are taking a different approach this time. We're not going to define that number at this point and direct them to provide us with their input so that we can adequately and accurately determine what they truly can do,” Darrah said in the 2017 interview. On Tuesday, Hewson acknowledged the types of projects Lockheed Martin bids on in the future could be affected by the Pentagon's focus on price when seeking new weapons programs. “We're going to pursue good business opportunities for us,” Hewson said. “We have talked about this before: affordability is an important value for them.” Hewson also addressed the growing speculation over whether defense contractors would be allowed to continue doing business with Saudi Arabia, as the United States government still grapples with the fallout from the death of journalist Jamal Khashoggi after last seen entering the Saudi consulate in Istambul. The kingdom is a Lockheed Martin customer, but Hewson said the company had relatively minor exposure to any fallout from having arms deal nixed by the U.S. government. Currently, the largest contract Lockheed Martin has with Saudi Arabia is to build the kingdom's fleet of four multi-mission surface combatant ships, based on the Littoral Combat Ship, worth $6 billion. Saudi Arabia just awarded Lockheed Martin a $450-million detailed planning and design contract, which is related to the planned four-ship purchase. “The largest order we've been waiting on obviously is for THAAD (Terminal High Altitude Area Defense), ” Tanner said. “That has not taken place yet. Not sure when that will take place. The interesting thing with the THAAD order is, while it brings a significant increase in backlog, the resulting sales, profit, and cash flow with that order are very much pushed to the right.” Required upgrades to Saudi Arabia's radar technology will delay the $15-billion THAAD order delivery for at least four years, Tanner explained. Without the technical refresh, he said Saudi Arabia would be unable to use the missiles effectively. “I think we have in 2019 about less than half a billion dollars of sales planned, and I looked out into in 2020, and it's less than $900 million in sales,” Tanner said. “So it's not a huge amount of dependency on the activity, even though the opportunities we've described are much larger than that obviously.” https://news.usni.org/2018/10/23/37506

By: Tom Kington ROME — Defying reports that their planned partnership is doomed to fail, France's Naval Group and Italy's Fincantieri have announced a joint venture to build and export naval vessels. The two state-controlled shipyards said they were forming a 50-50 joint venture after months of talks to integrate their activities. The move comes as Europe's fractured shipbuilding industry faces stiffer global competition. The firms said in a statement that the deal would allow them to “jointly prepare winning offers for binational programs and export market,” as well as create joint supply chains, research and testing. Naval Group and Fincantieri first announced talks on cooperation last year after the latter negotiated a controlling share in French shipyard STX. But the deal was reportedly losing momentum due to resistance from French industry and a political row between France and Italy over migrants. The new deal falls short of the 10 percent share swap predicted by French Economy and Finance Minister Bruno Le Maire earlier this year, and far short of the total integration envisaged by Fincantieri CEO Giuseppe Bono. The statement called the joint venture the “first steps” toward the creation of an alliance that would create “a more efficient and competitive European shipbuilding industry.” Naval Group CEO Hervé Guillou, speaking at the Euronaval trade expo in Paris on Oct. 24, said the alliance is based on “two countries sharing a veritable naval ambition.” The joint venture is necessary because the “context of the global market has changed drastically,” he added, specifically mentioning new market entrants Russia, China, Singapore, Ukraine, India and Turkey. When asked about an initial product to be tackled under the alliance, Guillou acknowledged: “The answer is simple: there is nothing yet.” However, the firms said they are working toward a deal to build four logistics support ships for the French Navy, which will be based on an Italian design. The firms also plan to jointly bid next year on work for midlife upgrades for Horizon frigates, which were built by France and Italy and are in service with both navies. The work would include providing a common combat management system. The statement was cautious about future acceleration toward integration. “A Government-to-Government Agreement would be needed to ensure the protection of sovereign assets, a fluid collaboration between the French and Italian teams and encourage further coherence of the National assistance programs, which provide a framework and support export sales,” the statement said. But the firms were optimistic the deal would be “a great opportunity for both groups and their eco-systems, by enhancing their ability to better serve the Italian and French navies, to capture new export contracts, to increase research funding and, ultimately, improve the competitiveness of both French and Italian naval sectors.” Sebastian Sprenger in Paris contributed to this report. https://www.defensenews.com/digital-show-dailies/euronaval/2018/10/24/naval-group-fincantieri-join-forces-to-survive-competitive-global-shipbuilding-industry