Defense Industry Daily

S304, KNM Uthaug
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Norway’s 6 Ula Class/ U210 diesel-electric submarines were commissioned from 1989-1992, and play an important role in their overall fleet. The 1,150t design combined German design, sonar, and torpedoes with a French Thomson-CSF (now Thales) Sintra flank array sonar. Integration happens through a Norwegian Kongsberg combat system, which has become a mainstay for German submarine types. The U210s are a bit on the small side compared to more modern diesel-electric boats, but they remain well suited to Norway’s long coasts and narrow fjords.

The Ula Class has received a number of upgrades since 2006. A new combat system, added cooling for warm water operations, upgraded periscopes, sonar improvements, TADIL-A/Link 11 communications, etc. Even so, the continuous cycle of compression and release inherent in submarine operations will make operations past 2020 a risky proposition. Norway wants to keep a submarine fleet, and by the end of 2014 decided it would need new boats to do so.

Contracts & Key Events

HNoMS Utsira

February 6/17: The Norwegian government has selected Germany over France to collaborate as strategic partners on their new fleet of submarines. Disburg-based Thyssenkrupp are likely to be tapped as the supplier in the program, relieving pressure from the firm following the losing of Australia’s submarine replacement program to France’s DCNS. Oslo’s program will replace its existing fleet of Ula-class vessels and will include four submarines for Norway, two for Germany, as well as provisions for future orders for the Netherlands and Poland.

May 3/16: Norway’s decision to pursue its new submarine procurement with NATO member suppliers has dashed hopes of increased Nordic defense cooperation and cross-border industrial ties. Sweden’s Saab had offered its customized version of the Swedish next-generation A-26 submarine to Norway, however Oslo decided to omit the manufacturer from its sub procurement shortlist. Instead, Germany’s Thyssen Krupp and France’s Direction des Constructions Navales Services (DCNS) have been selected as possible suppliers of the Navy’s new submarine-class.

April 11/16: As Norway continues its search for a cooperation partner for its submarine procurement, it has narrowed down the manufacturers who will carry out the task. The yards shortlisted by Oslo are France’s DCNS and Germany’s ThyssenKrupp Marine Systems (TKMS). Both companies have worked with and supplied systems to the Norwegian Navy over the last number of decades. While several other submarine yards, including Saab’s Kockums yard in Sweden had also applied, they lost out to Western Europe’s two largest submarine manufacturers.

April 8/16: A joint submarine procurement between Norway and Poland is not imminent despite ongoing talks on the matter. While Oslo is looking to proceed with a joint procurement of a submarine fleet, the final shape of the program, the number of vessels it plans to acquire, and with whom to cooperate still needs to be decided. Poland, in the midst of a nationalist fervor removing any military equipment stemming from the Cold War-era, is looking to acquire three new submarines to replace its aging Kobben-class subs, due to be decommissioned in 2021.

September 10/15: Norway and Poland are engaged in talks over a possible joint procurement of submarines, according to Norwegian press reports. As Norway debates how best to go about replacing its fleet of Ula-class subs, the Poles are reportedly seeking out European partners for a joint acquisition. The Polish Navy requires three new boats to enter service in the mid-2020s, with the Netherlands eyed as another possible partner. The Norwegian Ministry of Defence decided in December 2014 that the Ula-class subs would have their lives extended to 35 years – out to 2020 – with the replacement program currently in a project definition phase.

Dec 03/14: Planning. Norway’s Ministry of Defence delivers the decision it had promised it would make in 2014. Ula class submarines will be kept operational for an additional 5 years, but their life won’t be extended beyond a total of 35 years, as doing so was ruled out as too expensive. So there is going to be a new procurement, and a partnership with other countries is explicitly favored by the ministry to do so while minimizing project risk and costs.

A project definition phase will now take place for the next two years since the number of submarines or budget haven’t even been defined yet. Delivery should start to take place in the mid 2020s.

June 10/14: Go Dutch? The Netherlands has determined that an overhaul of its locally-designed Walrus Class submarines doesn’t make financial or operational sense, after a 20-25 year service life. They need new boats, but can’t afford to replace all 4, and their submarine industry died after Chinese pressure killed a sale to Taiwan. The solution? Present an initial plan this year, and go Dutch:

“As a result of the current budget constraints, the Dutch MoD is looking for an international partner to increase economy of scale and reduce costs of ownership in a new submarine programme. ‘We are open to discuss the whole spectrum from training to logistics,’ [CO Submarine Services Capt. Hugo] Ammerlaan said.

While the MoD is currently exploring a variety of options it sees Norway as a potential partner for co-developing and building submarines.”

That’s an interesting assessment. Norway isn’t a strong design/build partner, though Kongsberg’s combat system is often used in German U-boats, and well proven. Really making this work probably requires at least one more major partner, be it French (Scorpene), German/Italian/Korean (U2xx), or Swedish (A26). Spain’s S-80 was part of the Sept 11/12 RFI, but its severe weight issues have derailed development and made it a very unlikely candidate. Sources: Shephard Maritime Security, “UDT: Dutch MoD advances submarine replacement”.

May 6/14: Update. The Norwegian Ministry of Defence hasn’t issued its final recommendation yet on the Ula submarines, but they still expect to do so in 2014. To date:

“National and international expertise has been engaged in producing inputs to the process. ThyssenKrupp Marine Systems in Germany have recently completed an extensive study on extending the lifetime and maintaining the relevance of the Ula-class, beyond 2020. In addition, Kongsberg Defence & Aerospace, various original equipment manufacturers and other suppliers have contributed with information. Furthermore, other navies have provided in-depth information on their experience from similar processes. The company British Maritime Technology (BMT) is tasked to review technical aspects and risks related to a life extension program. BMT’s experience from similar analyses will contribute significantly to the overall analysis on the feasibility of such a program.”

Sources: Norwegian Ministry of Defence, “Evaluation of a potential service life extension of the Ula-class is being finalized”.

Nov 16/12: The Plan. A newspaper report prods Norway’s Ministry of Defence into clarifying the current status of its submarine program. They’re trying to decide between a further life extension of the current Ula Class, a replacement program, or some combination of the two. This process is expected to present its recommendations in 2014.

The chosen solution will form the basis for a project definition phase, before any investment project is presented for the Norwegian parliament in 2017. Norwegian MoD.

Nov 15/12: Rear Admiral Jan Gerhard Jæger (ret.) tells Aftenposten that modernizations may not be enough to keep the U210 Ula Class competitive. Money quote: “Norway currently has equipment that can be used to trace these submarines. Consequently, we must reckon with the fact that others also possess this.” The Foreigner.

Oct 3/12: Minister of Defence Anne-Grete Strøm-Erichsen speaks to the 2012 Army Summit, and talks about “The economic turmoil – implications for security and defence policy.” Some excerpts:

“When I left the Ministry in 2009, we hoped the financial crisis to have reached its peak… I think no one would disagree that since then things have got worse… we are witnessing a severe debt crisis with long term effects, particularly in the European economy. We need to prepare ourselves to be in this dire situation for the long haul. It will most likely dominate European politics for years to come. We experience an unprecedented economic crisis which over time has morphed into a crisis of social cohesion and confidence.

“…What I am suggesting is that we once again have to consider strategic and more traditional challenges. We have to reflect about the possibility of symmetric threats… If you are a defence minister it tends to be much easier to cut investments than bases or camps, simply because it does not have the same social effect in the short run… My fellow defence ministers are fully aware of this pitfall. If you make cuts in your investments budget the problems will not emerge in 2012 or 2013, but rather in 2017 or in 2025. Similarly, the immediate effect of reducing the budget for training and exercises is not critical. What you obviously risk is less agile, less prepared forces further down the line.

What makes these challenges even more daunting is the constant need for military transformation. There is a danger that several European Allies may have choose to postpone the restructuring of their military organisations…”

Sept 11/12: RFI. The Norwegian Defence Logistics Organisation (NDLO) on 11 september 2012 forwards a Request for Information to prequalified shipyards. The purpose of the RFI is to investigate investment cost, life cycle costs, production time, performance and other important aspects related to new submarines that in turn will shape a decision on life extension or fleet replacement. Responses to this RFI are expected by the end of 2012. Shipyards include:

• Daewoo Shipbuilding & Marine Engineering (South Korea, modernized U209s & U214)
  
• DCNS (France, Scorpene Class)
  
• Fincantieri (Italy, U212A partner)
  
• Navantia (Spain, S-80)
  
• ThyssenKrupp Marine Systems (representing Swedish Kockums AB’s new A26 design, and Germany’s HDW for U212A/U214)

Note that many of the contenders are offering variants on HDW submarine designs, which already come with a Norwegian combat system as their main option. The new player is South Korea’s DMSE, which has become one of the most significant and advanced shipyards in the world. They’re currently building U214s for South Korea, and U209 derivatives for Indonesia, while modernizing Indonesia’s existing U209 boats. If Norway opts for U210 life extension as part of their solution, DSME is likely to represent HDW’s main competition for the work. Norway MoD | Defense News.

RFI

2007 – 2011: The Norwegian Ministry of Defence studies whether Norway should continue to have a requirement for a submarine capability after 2020. This isn’t an idle question; their neighbor Denmark looked at the issue recently, and decided to scrap their underwater fleet.

The study concludes that no other system would be able to replace the capability offered by a modern fleet of submarines, and that Norway still needs this capability. Source.

Additional Readings

Note that the ship prefix used by Norway’s own navy is “KNM,” for “Kongelig Norsk Marine.” The English counterpart is “HNoMS,” for “His/Her Norwegian Majesty’s Ship.” DID uses them interchangeably.

• Norwegian Armed Forces – Equipment Facts: Navy

• Wikipedia – Ula class submarine

• DID (Jan 16/12) – Kongsberg to Upgrade Norwegian Submarine Combat Systems

Americas

• The Canadian government has commenced talks with the Pentagon over their planned purchase of 18 F/A-18 Super Hornet fighters, with Ottawa requesting first deliveries to commence in 2019. Data received from the Department of National Defense suggests that the acquisition will cost between $5 and $7 billion over the lifetime of the aircraft. Canadian military officials were in St. Louis two weeks ago to visit the Boeing production line, examining how they can customize their aircraft.

• Raytheon has been awarded a $202 million foreign military sales contract to provide engineering services for international operators of the Patriot weapon system. US allies set to receive the support include Germany, Israel, South Korea, Japan, Saudi Arabia, Kuwait, Qatar, Spain, Taiwan and the Netherlands, with work to be performed in various locations and due to be completed by the end of January 2018. The company’s bid was the only one received.

• Lockheed Martin will continue development of services for Terminal High Altitude Area Defense (THAAD) system elements following the award of a $345.5 million Missile Defense Agency (MDA) contract modification. Work to be carried out under the agreement includes the continuation of flight and ground tests of the system, and responsive support to warfighter requirements to sustain the Ballistic Missile Defense System throughout the acquisition life cycle. Used primarily by the US Army, THAAD has also been procured by the UAE, Oman and South Korea.

Middle East & North Africa

• With Turkey’s TAI and BAE Systems continuing with their development of Turkey’s TF-X fighter, there have been some concerns about how the program will develop in relation to technology transfers. Ankara had initially insisted on a full know-how and technology transfer during the program, however the full scope of these agreements have yet to be clarified and could be met with severe disagreements. In response to the prospect that they won’t get full transfer demanded, Turkish officials have made clear that they are willing to negotiate the TF-X with Airbus if at any point during contract talks it faces a deadlock with BAE Systems.

• While a military C-130 aircraft’s primary function is to transport  – troops, cargo, medivacs – a model operated by the Pakistan Air Force was recently utilized to deliver a special cargo to the Emir of Qatar. According to a letter reported in local Pakistani media, Prime Minister Nawaz Sharif sent the gift of a “beautiful horse,” to the Gulf monarch on February 1. Let’s hope the cleaning isn’t too much of a night-mare for the ground crews.

Europe

• The German military will move ahead with replacing their aging short-range air defense systems (SHORAD), following the discovery of a growing capability gap in Europe and the inability to defend against the use of swarms of unmanned aircraft or drones. Initial funding for the program is believed to lie just under $500 million, with a further $2.15 billion to be made available at a later phase. Procurement decisions on the new short-range air defense equipment are not expected until at least 2018, but the ministry could add some 20 million euros to the defense budget this year to fund initial work on the program.

Asia Pacific

• US Congress has been notified of the potential foreign military sales (FMS) for Sidewinder and Maverick air-to-air missiles to South Korea. The two contracts include the provision of 60 AIM-9X Block II and 89 AGM-65G-2 missiles, alongside required containers, spares and missile support. The combined value of both contracts amounts to $140 million with Raytheon acting as the principal contractor. News of the sale’s clearance coincides with US Secretary of Defense Jim Mattis’ first visit to South Korea as part of an initiative to assure South Korea and Japan that the Trump Administration is committed to their security. During his election campaign, President Trump suggested that South Korea was not paying enough for the US’ presence on the peninsula.

• Negotiations between the Japanese government, Pentagon, and Lockheed Martin have secured a $100 million reduction in Tokyo’s bill for its participation in the F-35 JSF program. While the news comes shortly after Lockheed Martin slashed $600 million from the next round of F-35 production, defense analysts have downplayed the news of those cuts, saying the discount hailed by Trump was in line with what had been flagged by Lockheed for months and would apply to other countries committed to the program. According to Reuters, four sources confirmed that Japan had further trimmed the price for its latest order, largely on ground support costs such as parts, logistics and technical assistance.

Today’s Video

• US Micro Drones Launched by from 3 F/A-18 Super Hornets.: PERDIX + LOCUST:

Americas

• A new signal processor for the AIM-120 air-to-air missile is being developed by Raytheon. Carried out under the Form Fit Function Refresh program (F3R), the work is aimed at ensuring the continuation of AMRAAM production well into the 2020s. While little else is currently known about the signal processor’s development work, the missile is capable of tracking targets in electronic warfare environments. Already carried on F-16, F-15, F/A-18, F-22, Typhoon, Gripen, Tornado and Harrier fighters, the AIM-120 is also cleared for use on the F-35 Joint Strike Fighter, making it the munition that has flown on more aircraft worldwide than any other air-to-air missile.

• The USAF has announced the completion of a series of upgrades on 446 Air Force and 10 Navy T-38C advanced trainer aircraft. Work carried out during the modernization saw the installation of a video data transfer system (VDTS) and speed break indicator switch (SBIS), giving pilots and the heads-up display a visual indicator of the speed brake position. The completion of the $50 million VDTS/SBIS program wrapped up its work in December 2016. Talons are expected to be in service until 2034, when they will be replaced by the next-gen T-X trainer.

• Northrop Grumman and BAE Systems have decided not to enter a bid in the upcoming $16 billion T-X trainer competition for the USAF. The official announcement comes days after Northrop CEO Wes Bush told analysts that the company was reassessing their bid and business case for the tender. A joint statement by Northrop and BAE stated that submitting a bid for the T-X Trainer contract “would not be in the best interest of the companies and their shareholders.” The only remaining interested parties are a clean-sheet design by Boeing/Saab and Lockheed Martin/Korea Aerospace Industries’ T-50A.

Middle East & North Africa

• Sales of F-16V fighters to Bahrain are likely to continue under US President Trump, according to Senate Foreign Relations Committee chairman Bob Corker. Estimated to be valued at $2.8 billion, the sale of 19 of the fighters had been put on hold under Barack Obama until the Gulf kingdom had addressed some human rights concerns against their non-violent opposition. Corker added that “I’m hoping the Bahrain deal is going to roll out without the restrictions,” indicating that the original conditions imposed by the Obama administration may be lifted. Like many nations in the Arab world, Bahrain faced a wave of protests during the 2011 “Arab Spring,” which was met with a brutal crackdown by the ruling King Hamad.

• Turkey’s plan to upgrade of a batch of 200 German- and US-made battle tanks has received five bids from local industry, including surprise bids from military electronics specialist Aselsan and missile maker Roketsan. The $500 million modernization plan to upgrade 40 M60A3, 40 Leopard II A4 and 120 M60T tanks will also see bids from armored vehicles manufacturers BMC, Otokar and FNSS. While the competition is structured to be a local battle, industry sources suggest that due to the advanced technology that will be involved in the program, most business in the contract may involve foreign suppliers. Bidding is expected to be finished by the end of the year.

Europe

• Poland has received a proposal from the Lockheed Martin-led team behind the Medium Extended Air Defense System (MEADS), as part of the drive to upgrade air defense capabilities under the Wisla program. MEADS, Israel’s David’s Sling, and a French consortium were initially considered alongside Raytheon’s Patriot system, though all but the Patriot were dismissed by Warsaw due to the fact that they were still in development. However, since the procurement process has dragged on, MEADS is much closer to the fielding stage and was therefore asked to submit a proposal on request from the Polish government, triggering a head-to-head between Raytheon and Lockheed Martin. The proposal includes a potential order for 16 systems and a plan to include a work-share agreement with Polish industry.

• Alongside long-term big-ticket procurement plans for new fighters, maritime-surveillance aircraft and submarine fleets, the Norwegian government is focusing efforts on stockpiling munitions, fuel and spare parts ahead of any potential conflict in the region. The hoarding comes as Oslo is concerned about potential shortages to the support equipment vital to the country’s missions both at home and abroad and will make funding available for these supplies, which also includes development of the Joint Strike Missile. Renewed investment in military procurements and upgrades by Scandinavian and Baltic governments comes amid growing tensions and uncertainty about potential conflicts that may stem from any aggression that may come from neighboring Russia.

Asia Pacific

• The Iranian government has confirmed that they have tested a new missile, but denied claims that the move was in breach of a UN Security Council resolution to curb nuclear development. In response to the test, the new US ambassador to the UN, Nikki Haley, condemned the move stating that the “United States is not naïve. We are not going to stand by. You will see us call them out as we said we would and you are also going to see us act accordingly.” While Tehran has conducted missile testing since the 2015 nuclear accords, it is the first during the Trump administration. Trump said in his election campaign that he would stop Iran’s missile program.

Today’s Video

MEADS capability notes:

Americas

• Raytheon has been contracted to deliver Small Diameter Bombs (SDB) to the USAF. While the exact value of the contract modification was undisclosed, the company received $62 million at the time of the award. The contract calls for the delivery of low-rate initial production for 312 SDB II Lot 3 munitions for the branch, and also includes 413 SBD Lot 3 single weapon containers, 20 weapon conversions for guided test vehicles, 20 production reliability incentive demonstration effort captive vehicles and training and maintenance services. SBDs are being integrated on a number of USAF and US Navy aircraft, and provide warfighters with the ability to engage their targets when faced with poor weather and other adverse conditions.

• A once available report, questioning the logic in the Canadian procurement of an interim fighter to replace its fleet of of CF-18s, was pulled from the Department of National Defence website once Ottawa decided to procure F/A-18 Super Hornets as an interim fighter. The report had recommended against buying a “bridging” fighter aircraft, citing “disproportionately high costs during the bridging period.” In response, the government stated that “the aggregate of the information contained in the report speaks to the capability of the Canadian Armed Forces and is sensitive in nature,” hence its pulling.

• While no contract details have been announced, US President Donald Trump has claimed that the Lot 10 production for 90 F-35s will be $600 million cheaper, thanks to his pressure. The comments come after weeks of hand wrangling with lead contractor Lockheed Martin over pricing. Trump had criticized the fifth-gen fighter during his election campaign, but during his recent comments called the F-35 a “great plane” that’s “now in good shape.” Despite the detente, Trump added that Boeing will still be asked to compete for orders against the F-35 saying “they [Boeing] will be competing during the process for the rest of the planes because there are thousands of more airplanes coming.”

• The latest variant of the Predator B UAV, SkyGuardian, has been launched. Developed by General Atomics with collaboration from the German Military Aviation Authority, SkyGuardian meets international standards for flying in civilian airspace and is fully compliant with NATO’s UAV System Airworthiness Requirements (defined in STANAG 4671) and Britain’s DEFSTAN 00-970 standards. Once operational, the UAV will be used to protect ground forces as well as participate in non-military missions like border-surveillance, maritime patrol, and relief over-watch in cases of natural disasters. It can also carry a variety of sensor and communications payloads and can transmit high-resolution video to manned aircraft and ground forces.

Middle East & North Africa

• Efforts are being made by the US DoD and Iraqi diplomats to allow Iraqi F-16 pilots effected by President Trump’s controversial travel ban enter the USA. The executive order on immigration, which suspended travel for citizens from several Muslim majority countries, including Iraq, to the US for a period of 90 days, prevents the pilots from continuing their training in the US with the US Air Force. It is hoped that an exemption would be granted to the pilots under the reasoning that Iraq is a significant ally in defeating the Islamic State.

Europe

• A light-weight version of the Indo-Russian designed BrahMos cruise missile is to be developed for Russia’s 5th-gen T-50 PAK FA fighter aircraft. Already available in naval, submarine, and land variants, Indian and Russian developers will now collaborate on designing smaller variants of the short-range ramjet supersonic cruise missile with the specification that it will “fit the size of a torpedo tube and be almost 1.5 times smaller by its weight.” Other potential warfighters that could have the new munition integrated include the MiG-35, recently selected to operate as Russia’s newest multi-purpose fighter.

Asia Pacific

• India has reversed a policy to give big-ticket orders only to state-owned companies announcing that its first homemade 155mm/52-caliber towed artillery gun, the Advanced Towed Artillery Gun System (ATAGS), will be built jointly by private sector companies. Next year will see New Delhi award private industry a $350 million award for the production of 114 guns, with production expected to start two years from the order’s placement. Developed by the state-owned Defence Research and Development Organization (DRDO) in partnership with two private sector firms — Kalyani Group and Tata Power SED- the Indian Army has a requirement for more than 1,500 towed guns, with a potential value of up to $4.5 billion.

• Claims made by Philippines President Rodrigo Duterte-that US troops were building arms depots in five Philippine bases in defiance of a security deal has been rejected by the US ambassador to the South-Asian nation. Duterte claimed on Sunday that the US had stockpiled weapons, including tanks, in three locations in the Philippines, which could provoke China and put his country in harm’s way. In response to the claims, Ambassador Sung Kim said that his country could not build anything on Philippine bases against the consent of the Philippine government, and its facilities are “not related to weapons.” Instead, any planned facility building was for the purpose of storing equipment for disaster response.

Today’s Video

The fifth test of David’s Sling:

Americas

• Northrop Grumman has remained coy on their participation in the USAF T-X trainer competition, with CEO Wes Bush remaining non-committal to the program despite having designed and developed a prototype. Bush’s tone shocked some analysts and has led some to speculate that the company would rather lose out on the $16 billion competition than have a price war eat away at its bottom line. Northrop recently won the development contract for the USAF’s next long-range bomber, the B-21 Raider, a greater priority.

• In other T-X news, Raytheon’s withdrawal from collaboration with Leonardo boiled down to pricing disagreements. The team was set to offer a variant of the Italian firm’s M-346 trainer, however Raytheon wanted to drop the cost of the trainer by a third. Disagreements within the camp initially surfaced last October in a row over control of the program, but the final straw seems to have come over the ultimate cost of the procurement.

• A US Navy contract has tasked Charles Stark Draper Laboratory with Trident D5 MK 6 guidance system production. Valued at $53 million, work carried out under the deal will include the performance of several services for the submarine-launched ballistic missile including failure verification, testing, repairs, recertification of inertial measurement units electronic assemblies, and electronic modules. The Trident II D5 program will replace the current Polaris and Poseidon systems currently used by the US and UK armed forces.

Middle East & North Africa

• In what has been a rather hectic week for the White House (and those reporting on it), US Senator John McCain has spoken out against President Trump’s recent travel ban. The measure, according to McCain, will prevent Iraqi F-16 pilots from training with Arizona Air National Guard’s 162nd Wing. McCain stated that he has expressed his concerns with director of the Central Intelligence Agency, David Petraeus, saying, “I talked with Gen. Petraeus last night, he is very concerned about the special visas for those interpreters whose lives are literally in danger as we speak.”

Europe

• The MiG-35 has been selected by the Russian military to act as their new light multi-purpose fighter. Flight tests on the 4++ generation jet commenced last Thursday and it is expected that serial production of the fighter will commence in 2019. Developed on the basis of the serial-produced MiG-29K/KUB and MiG-29M/M2 aircraft, the MiG-35 will have eight weapons bay points (up from six), and the potential for the integration of new weapon technologies such as lasers.

• Israel and the US government have granted Israeli manufacturer Rafael permission to discuss the David’s Sling air-defense system with Poland as part of a wider export push for co-developed interceptor systems. The announcement comes as the anti-ballistic system was recently cleared during a fifth round of trials. Tel Aviv has been developing multi-tiered missile defense system with US and local industry for some years now, with their Iron Dome, Arrow and David’s Sling systems all being offered to foreign customers.

Asia Pacific

• North Korea has expressed concern over “mad-cap drills” conducted by US and South Korean marines during recent military drills. Pictures of shirtless marines on the ski slopes of Pyeongchang, site of next year’s Winter Olympics, seemingly worried and/or confused Pyongyang, where up to over 300 marines from the USMC and RoKMC practiced hand-to-hand combat drills. The annual drills will run between Jan. 15 and Feb. 3.

• Hindustan Aeronautics Ltd (HAL) has completed their first swap out of foreign-made equipment on their Hawk MK132 advanced trainer aircraft. Designated as Hawk-i, the jet had imported mission computer and data transfer units upgraded with Indian-made components and includes additional capabilities such as digital map generation. Other additions include a secured voice communication and data link capability by integration of Softnet Radio.

Today’s Video

South Korea completes deployment of upgraded AH-64E helicopters:

David’s Victory
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David didn’t need high technology to defeat Goliath, just some stones and a sling. But in the modern world, David is getting some high-tech help from the likes of Raytheon and Rafael Advanced Defense Systems, who are developing a missile defense system called David’s Sling Weapon System (DSWS).

The DSWS is a joint short-range ballistic missile defense program between the US Missile Defense Agency and the Israel Missile Defense Organization. The system is designed to defeat short-range ballistic missiles, large-caliber rockets and cruise missiles in their terminal phase of flight.

Raytheon received 2 contracts from Rafael worth more than $100 million to build DSWS components.

The 1st contract was awarded to codevelop the missile component of the DSWS called the Stunner Interceptor. Stunner is a hit-to-kill interceptor designed for use in the DSWS and allied integrated air and missile defense systems.

The 2nd contract was awarded for the development, production and integrated logistics support of the missile firing unit (MFU), the launcher component of the DSWS. The MFU will provide the DSWS with vertical interceptor launch capability for 360-degree extended air and missile defense.

Other joint US-Israel missile defense efforts include coproduction of the Arrow missile defense system interceptors and an initiative to provide Israel an upper-tier missile defense system. According to Defense Update, the United States and Israel have begun development of an upper-tier component to the Israeli Arrow 3 missile defense architecture. According to Arieh Herzog, director of Israel’s Missile Defense Program, the main element of this upper tier will be an exo-atmospheric interceptor, to be jointly developed by Israel Aerospace Industries and Boeing.

Updates

January 31/17: Israel and the US government have granted Israeli manufacturer Rafael permission to discuss the David’s Sling air-defense system with Poland as part of a wider export push for co-developed interceptor systems. The announcement comes as the anti-ballistic system was recently cleared during a fifth round of trials. Tel Aviv has been developing multi-tiered missile defense system with US and local industry for some years now, with their Iron Dome, Arrow and David’s Sling systems all being offered to foreign customers.

January 30/17: Israel and the US have completed a fifth series of tests on the David’s Sling missile defense system. The Israel Missile Defense Organization (IMDO) and US Missile Defense Agency (MDA) collaboration was tested at the Yanat Sea Range in Israel, with the system’s Stunner interceptors successfully engaging its targets. The David’s Sling project is for defense against large-caliber rockets and short-range ballistic missiles.

March 4/16: The Israeli Air Force (IAF) has begun to take possession of the David’s Sling Weapon System (DSWS). The first phase of the gradual delivery of components include multimission radar by Elta Systems; Stunner interceptors by Rafael and its US partner, Raytheon Missile Systems; and the Golden Almond Battle Management Center by Elbit Systems Elisra. Once these are in place, an integration testing of all system components will take place prior to a declaration of initial operational capability by the IAF. The DSWS has been developed to bridge the gap between the lower and upper tiers of Israel’s four-layer active defense network, deployed above Israel’s Iron Dome and below the upper-atmospheric Arrow-2 and exo-atmospheric Arrow-3.

Americas

• The USAF’s T-X Trainer competition has taken a sudden turn, with Raytheon and Leonardo announcing that they will no longer be collaborating on the program. As a result, Leonardo now has to decide whether to go it alone with the T-100 variant of its Aermacchi M-346 advanced trainer without a US partner, find another US collaborator, or pull out of the $16.3 billion competition altogether. Whatever will happen next?

• A US Army Stryker armored vehicle fitted with a 30mm cannon has been tested for the first time. Testing of the cannon, part of a series of upgrades designed to increase the mission capabilities of US Stryker vehicles, was undertaken in order to verify its combat abilities and make future determinations on the vehicle’s armament. The Pentagon’s decision to upgun a number of its Stryker’s – nicknamed the Dragoon – was taken in response to Russia’s 2015 invasion of Ukraine to close a ground vehicle capability gap, according to service leaders. The Army plans to field first of 83 Dragoons by the end of Fiscal 2018.

• Missile giant Raytheon has revealed a 1.4 percent fall in quarterly revenue, sparked by a drop in sales by its units in charge of missile systems and tracking and navigation sensors. Speaking on the slump, CEO Tom Kennedy said that a renewed campaign against militants of the Islamic State by the Trump administration could boost sales of its precision guided munitions. Meanwhile, Northrop Grumman has forecast lower 2017 earnings per share below Wall Street estimates due to lower segment operating margins, which some analysts attributed to costs related to some of its new programs.

Middle East & North Africa

• Textron Systems has been contracted by the USAF to provide maintenance training for the Afghan Air Force. The $9.3 million deal orders the provision of maintenance training to Afghan crew and includes logistics support for 24 aircraft operated by Kabul. Work will be performed in Afghanistan and is expected to be completed by the end of January, 2018.

Europe

• Romania has made an additional order with General Dynamics European Land Systems for its Piranha III wheeled armored vehicles. This is the country’s fifth order with GDEL for the vehicle, which has been in service with its armed forces since 2006. Announcing the order, GDEL did not give any further information on the procurement in relation to unit numbers or cost.

• The Croatian government has laid out their defense spending plans for 2017, with a focus on coastal patrol vessels, new howitzers, as well as continuing procurement of second-hand OH-58D Kiowa Warrior armed reconnaissance helicopters from the US. An additional $57 million has been added over last year’s figures, representing a 7% increase on funds in 2016. Other defense projects for this year include medium-lift helicopter overhauls, ordnance procurement, and M-84 main battle tank upgrades.

Asia Pacific

• Taiwan’s Minister of National Defense has announced his government’s ambition to pursue an indigenous stealth fighter once Taipei completes work on its advanced jet trainer. Feng Shih-kua, a former Air Force pilot, said that the Rep. China Air Force’s new aerospace research center will play an important role in the development of the fighter. Military officials later added that the jet will rely on its TFE-1042-70 afterburning turbofan as its power plant.

• A state-run Chinese newspaper has reported that Beijing is testing a new long-range air-to-air missile capable of downing early warning aircraft and aerial refueling aircraft. The munition’s development runs alongside what is described as an “ambitious modernization program” led by President Xi Jinping, including stealth fighters, aircraft carriers and the testing of anti-satellite missiles. While the air force has yet to comment on this new missile, pictures posted on the service’s website, showed a J-11B fighter carrying a large, unidentified missile during drills last year.

Today’s Video

What could have been for the USAF: The M-346:

Americas

• It seems likely that the KC-46A aerial tanker will not meet its aggressive delivery schedule, with manufacturer Boeing stalling deliveries to the USAF until late 2017. Boeing had already moved its delivery schedule from March to August. The revelations were found in an annual report by the DoD’s Director of Operational Test & Evaluation, which stated “execution of the current schedule assumes historically unrealistic test aircraft fly and re-fly rates.”

• Developments on the new Advanced Arresting Gear (AAG) have been given the thumbs up from the US Navy and will be installed on board the next USS John F. Kennedy. Designed to stop carrier-borne aircraft, the decision was made following a thorough review by an AAG Resource Requirements Review Board (R3B) last November. The 350th trap of an F/A-18E Super Hornet fighter was completed in December and the AAG team continues multisite test operations with the next type/model/series and the E-2/C-2 platform.

• Raytheon has been selected to provide SM-6 missiles and spares, to be deployed on AEGIS-equipped cruisers and destroyers. Valued at $235 million, the award comes following several testing and milestone events for the weapon that verified the weapon’s capability to intercept incoming medium-range ballistic missile attacks. This contract represents funding for the fourth year of full-rate production for the multi-mission missile and deliveries are expected to begin in 2018.

• Lockheed Martin has announced that it is close to signing a deal with the F-35 Joint Program Office on the next batch of the Joint Strike Fighter. The announcement was made by CEO Marilyn Hewson to investors on Tuesday, where the company also disclosed that it beat revenue estimates for fourth-quarter 2016/17. Hewson added that the defense giant plans to “drive affordability” in 2017, a reference to ongoing discussions between President Trump and the defense industry to get a “better deal” on government contracts.

Middle East & North Africa

• A rift between the Austrian and Turkish governments has resulted in the scrapping of a collaboration deal on the Altay Main Battle Tank. AVL List, an Austrian engine firm, had previously signed a deal with Turkish counterpart TUMOSAN in 2015 to provide technical support for the engine that the Turkish company had been commissioned to develop for the Altay. However, Ankara insisted that it should finally have the intellectual property rights and export licenses for each part of the engine, something Vienna refused. Matters were made worse following criticisms from the Austrian government (and many others in Europe), in regards to Turkey’s democratic values, following the purge of some 100,000 government employees as a result of the government’s dragnet of conspirators and sympathizers behind last summer’s failed coup. The deal was effectively killed last November, when the Austrian Parliament decided to impose an arms embargo on Turkey. It remains unknown if the decision will affect the time schedule for the Altay’s production.

Europe

• Germany is pushing ahead with a plan to procure a new short-range missile defense system, with a decision on the plan due to be made soon. Contenders for the program include the Norwegian Advanced Surface to Air Missile System (NASAMS) and a surface-launch variant of the IRIS-T missile made by German manufacturer Diehl Defense. Berlin’s new program is a result of efforts by NATO members to increase defense spending amid pressure from US President Donald Trump for NATO allies to up their contributions to the alliance. Almost $500 million has been earmarked for the initial stages of the sale, but could see extras, such as lasers and radars, added at a later date.

Asia Pacific

• Pakistani authorities have announced the successful first test of their second nuclear-capable Ababeel ballistic missile in a month. The missile has a maximum range of 1,367 miles, and is capable of carrying multiple warheads using the Multiple Independent Re-entry Vehicle technology. Pakistan’s latest demonstration follows that of their Babur-III launch on January 9, and a number of test-firings conducted by neighboring India, which have contributed to escalating tensions between the historically hostile nations.

• The competition to replace Indonesia’s aging fleet of F-5E Tiger fighters is still open, according to the country’s new Air Force head. Contenders for selection include the Russian Sukhoi Su-35, the US F-16 Block 60 Viper, and Saab’s JAS-39 Gripen, with the eventual winner expected to supply 16 fighters in a deal costing in the region of $1.5 billion. All 16 of Indonesia’s F-5E/F fighter jets have been retired since late 2005, and under reserve for future use.

Today’s Video

Pakistan claims successful Ababeel ballistic missile test:

Americas

• A change in defense strategy by the Trump Administration could see the F/A-18 compete with the F-35, according to one analyst. Speaking at the Center for Strategic and International Studies on Monday, defense acquisition analyst Andrew Hunter stated that an “advanced Super Hornet” still can’t compete with the stealthy F-35 in airspace monitored by radar surveillance, but a semi-low-observable F/A-18E/F with more carriage capacity could emerge as an attractive option against less sophisticated threats. However, if US strategy “requires to operate continuously in denied access air environments, there is no such thing as a comparable Super Hornet…It simply doesn’t exist.”

Middle East & North Africa

• The first US State Department Foreign Military Sale (FMS) approvals of 2017 came thick and fast on Monday, with total sales to partner nations amounting to $1.8 billion. One of the first buyers to be cleared was the government of Kuwait, who are seeking air-to-air missiles as well as Apache logistics support. The first deal involves the provision of 60 AIM-120C-7 Advanced Medium Range Air-to-Air Missiles (AMRAAM), for use by the kingdom’s F/A-18 fighters, and is costed at an estimated $110 million, while the second covers a $400 million support contract, which includes sustainment and contractor logistics support for AH-64D Apache Helicopters. As with all FMS deals, Congress has 30 days to oppose the sale.

• Another FMS cleared by the State Department is the provision of ten 74K Persistent Threat Detection System (PTDS) Aerostats and related equipment, support, and training to the government of Saudi Arabia. Estimated in the region of $525 million, the sale also includes: 14 Ground Moving Target Indicator (GMTI) Radars; 26 MX-20 Electro-Optic Infrared (EO/IR) Cameras; and 10 Communications Intelligence (COMINT) Sensors. PTDS is a large helium-filled lighter than air system designed by Lockheed Martin to provide soldiers long range intelligence, surveillance, reconnaissance and communication assistance.

Africa

• Kenya has been OK’ed by the US State Department to proceed with the possible $418 million sale of military aircraft. Included in the deal are up to 12 Air Tractor AT-802L planes and two AT-504 trainer aircraft, a weapons package, technical support and program management. The prime contractor on the deal is L3 Technologies Inc (formally L3 Communications), and once delivered, the aircraft will go toward augmenting the Kenyan Armed Force’s ability to conduct close air support missions against al-Shabaab militants from neighboring Somalia.

Europe

• US media has confirmed that a British Trident submarine-launched ballistic missile (SLBM) fired from HMS Vengeance off the coast of Florida last year did veer off course. Citing a US defense official, CNN also reported that the inert missile triggered its automatic self-destruct sequence once the test was in jeopardy. Since the story broke on Sunday, the UK government has come under increased pressure to release details on the test, which occurred weeks before last June’s Parliament vote on the program’s $49.5 billion renewal. PM Teresa May initially refused to comment on whether she knew about the test before the vote, before confirming that she had been briefed on a range of nuclear issues, including Trident, on taking office from David Cameron in June, 2016.

• Besides Trident, the UK has been unsurprisingly cleared to receive continued C-17 logistics support services, and equipment from the US. Valued at an estimated cost of $400 million, provisions in the contract include continued support for eight RAF C-17 Globemaster transport aircraft once the previous deal expires in September.

• Russia’s Buk-M3 medium-range anti-aircraft missile system is being prepared for export by state-owned firm Almaz-Antey. The company expressed confidence in the new system’s ability to sell abroad, citing its continuous “developments in the niche of medium-range antiaircraft missile systems” over the last half century. First units of the Buk-M3 were delivered to the Russian Armed Forces last October and are already on active duty.

Asia Pacific

• Preparations are underway for a late-January test of India’s K-4 SLBM. Slated for January 31, the missile will be launched from a submerged pontoon 20-30 meters below the surface in the Bay of Bengal. An earlier test in 2016 saw the missile successfully fired from 20 meters under water, traveling 700km range before striking its target. At its maximum, the K-4 can be fired from 50 meters below the surface and has a range of 3,500 km.

Today’s Video

Aerial Refueling of the PAK FA/T-50:

Happy ‘trails…
(click to view full)

The C-17 has had more money-driven last hurrahs than The Who. Even so, FY 2010 featured the USAF’s last planned orders of C-17 Globemaster III short field, heavy-lift transport jets.

The Pentagon had been trying to end the program for years, but 3 factors led Congress to keep adding new C-17s to the budget, year after year: (1) deep doubts about the premises, pre-9/11 vintage, and quality of the Pentagon’s mobility studies; (2) uncertainty concerning the C-5 Galaxy super-heavy transport’s upgrade programs; and (3) a fleet wear tempo much higher than originally forecast, driven by constant requests from theater for C-17s.

All things end, and there were no new C-17s bought in the FY 2011 or FY 2012 budgets. That would leave the USA with a total ordered fleet of 223, once they’re all under contract. At long last, they are.

Contracts & Key Events, 2009 – Present

Hawaii air show
(click to view full)

Final USAF C-17 purchases, by year, are 15 in FY 2008, 8 in FY 2009, and 10 in FY 2010. Foreign orders have kept the production line alive, and in 2012, a single C-17 was ordered to replace an aircraft that had been destroyed. Order placement may not conform exactly, depending on the progress and timing of negotiations. Those numbers, coupled with greater certainty in the cut-down C-5 upgrade program, and a looming budget crises in the USA, make it likely that the end has finally come. Enhancements and maintenance will continue to attract significant budgets, but USAF production will end. In response, Boeing is throttling back annual C-17 production. In order to keep the C-17 production line and sales cycle alive, they’ll have to depend on foreign orders from export customers like the UAE, India, etc., orders for a civilian transport version to provide outsize cargo and/or remote equipment delivery, or some other contingency.

The expected total of 223 USAF C-17s sits just above the program’s original goal of 210 planes, which may be a fortunate thing. The Global War on Terror created very heavy demand for C-17s, resulting in increased flying hours that are wearing out the fleet early. Adding additional aircraft will help the fleet as a whole last longer, by distributing flight hours across more planes. At the same time, US vehicle programs continue to exceed the weight limit of lesser transports, ensuring robust future demand.

Unless otherwise noted, Boeing Defense, Space and Security’s Global Mobility Systems unit in Long Beach, CA executes the contracts, which are issued by by the 516th AESG/PK at Wright-Patterson Air Force Base, OH. Note that separate contracts exist for F117 engines, and for other “government furnished equipment” that is part of the final, operational aircraft.

No more coming
(click to view full)

January 25/17: Besides Trident, the UK has been unsurprisingly cleared to receive continued C-17 logistics support services, and equipment from the US. Valued at an estimated cost of $400 million, provisions in the contract include continued support for eight RAF C-17 Globemaster transport aircraft once the previous deal expires in September.

February 25/16: C-17 transport aircraft used by the UAE military are to be fitted with infrared countermeasure systems in a program that could cost up to $225 million. The provision of AN/AAQ-24(V)N Large Aircraft Infrared Countermeasures (LAIRCM) equipment, and logistics support was approved by the US State Department as a Foreign Military Sale. Eight C-17s will receive a LAIRCM system which includes three Guardian Laser Transmitter Assemblies (GLTA), six Ultra-Violet Missile Warning System (UVMWS) Sensors AN/AAR-54, and one LAIRCM System Processor Replacement (LSPR).

December 1/15: Boeing has finished production of the final C-17 Globemaster III aircraft and it will make its way to Qatar next year. The completion of the plane will see the Long Beach plant close at a loss of 400 jobs. Since its inception in 1991, 279 Globemasters have been produced at the California facility, but lack of international demand for the plane has rendered keeping the plant open financially unfeasible. C-17 fleets are currently operational in UK, Canada, Qatar and Australia.

April 27/15: Boeing took a flyer and privately financed the production of 10 C-17A Globemasters. With a series of Commonwealth countries expressing interest, five are still left unsold.

Sept 12/13: Era ending. Boeing delivers the USAF’s 223rd and last C-17A Globemaster III, which flies off to its assignment at Joint Base Charleston, SC. It marks the end of an era that began with the C-17’s 1st flight, on Sept 15/91.

In a follow-on release, Boeing says that C-17 production for all customers will end in 2015, with the closure of the Long Beach, CA assembly line after the last 22 C-17s are delivered. It’s possible that a couple of additional orders might materialize, but that’s not enough. As Boeing Defense, Space & Security President Dennis Muilenburg put it:

“Our customers around the world face very tough budget environments. While the desire for the C-17’s capabilities is high, budgets cannot support additional purchases in the timing required to keep the production line open…”

Boeing will take a charge of < $100 million this quarter, and expects to begin the layoff process in 2014 for nearly 3,000 employees in Long Beach, CA; Macon, GA; Mesa, AZ; and St. Louis, MO. They had throttled back production to try and keep the line open for foreign sales, but the number of customers with the budget to buy them was always limited, and so was the amount of extra time those orders could give the production line. Sources: Boeing video feature | Boeing releases, Sept 12 and Sept 15/13.

Final USAF delivery, Plant shutdown announcement

June 19/12: One more. Boeing receives a $169.8 million firm-fixed-price contract for 1 USAF C-17A replacement aircraft. Boeing has confirmed that this contract is for the USAF.

It is needed to replace the C-17 lost in the 2010 accident, but the contract doesn’t include important “government-furnished” items like engines (another $35-38 million), military communications and defensive systems, etc. See the February 2011 entry for average C-17 costs.

Work will be performed in Long Beach, CA, and will be complete by May 23/13. The ASC/WLMK at Wright-Patterson AFB, OH manages the contract (FA8614-06-D-2006, DO 0010).

+1 C-17

Jan 23/12: Finis. Boeing in Long Beach, CA receives a $693.4 million firm-fixed-price contract modification to delivery order (DO) 0006, for 5 more USAF C-17s. DO 0006 is noted on May 16/11, and bought the 1st 5 aircraft of the USAF’s FY 2010 order. This agreement and contract is confirmed as closing the books on USAF C-17 production, by bringing the order to its expected 10.

+5 C-17s

Work will be performed in Long Beach, CA, and is expected to be complete by March 20/13. The ASC/WLMK at Wright-Patterson AFB, OH manages the contract (FA8614-06-D-2006, DO 000603).

May 16/11: A $962.5 million firm-fixed-price delivery order against the basic C-17 production contract, for 5 of the FY 2010 C-17A aircraft. At this time, $471.6 million has been committed.

Boeing representatives said that a contract for the other 5 is expected later in 2011 (FA8614-06-D-2006, DO 0006).

+5 C-17s

February 2011: According to the USAF’s FY 2012 budget documents [PDF], flyaway costs for the last set of FY 2010 C-17s is around $193 million each, rising to a full operational cost per aircraft of about $256 million once spares, site support, training, etc. are also factored in.

All planned USAF orders (incl. FY 2010) and existing export orders would see the C-17 production line end at the end of November 2012, with the USAF taking the final delivery. [Addendum: A subsequent order from Australia pushes this to the end of December 2012.]

Jan 20/11: Boeing announces the 2nd phase of C-17 Program Production Rate and Work Force Reductions. 1,100 employees cut, 900 in Long Beach, CA, as production drops from its high-water mark of 15 C-17s per year down to 10 per year.

Boeing hopes to keep the line open longer this way. The tradeoff is added fixed costs from running the line for more years, vs. the potential for new orders each extra year the line is still running. Recent experience with export orders shows latent demand around the globe, and once the C-17 line stops, strategic airlift options will shrink to rented Russian/Ukrainian AN-124s, or the medium-heavy lift Airbus A400M.

Planes are replaceable
…people aren’t
(click for video)

July 28/10: Crash. A USAF C-17A (tail number 00-0173) crashes at Elmendorf AFB, Alaska, killing all 4 crew aboard. The crew were preparing for Elmendorf’s Arctic Thunder Air Show, which went ahead on July 31/10. The crash is attributed to pilot error.

Crash

June 22/10: A $1.5 billion contract modification to buy 8 more C-17 aircraft for the USAF. At this time, $734.4 million has already been committed (FA8614-06-D-2006).

February 2010: Budgets. The USAF’s FY 2011 budget submission [PDF] gives an average C-17 flyaway cost to date of around $201 million over the entire program, rising to a full “weapon system cost” of $267.5 million once required spares and support are also factored in. Despite this, it also notes that:

“The FY2010 appropriation of $2.5B “for the procurement of ten C-17 aircraft, associated spares, support equipment and training equipment as required” is not sufficient for this requirement. Shortfall estimated at $530M.”

These 10 aircraft would push total USAF buys to 223. That’s 13 more than the original program goal of 210, and far more than the 180 plane fleet the USAF would have had without Congressional intervention. On the other hand, the 223 were built over a longer manufacturing time frame than originally planned, and in the face of a fleet whose first C-17s are going to be retiring early due to heavy usage.

Feb 6/09: FY 2009. A firm-fixed-price contract to McDonnell Douglas Corporation of Long Beach, CA for an amount not to exceed $2.95 billion. This is an unfinalized contract to buy 15 more C-17A Globemaster III strategic transport aircraft in FY 2009, and separate contracts can be expected for engines and government furnished equipment that is part of the final, operational plane. At this time, $114.6 million has been committed. Wright-Patterson Air Force Base, OH will manage the contract (FA8614-06-D-2006).

Budgets to the end of FY 2008 would bring the American fleet to 205 aircraft, and the FY 2009 budget calls for 8 more.

+15 C-17s

Additional Readings

• DID – The Global C-17 Sustainment Partnership. After they’re produced, a maintenance partnership with Boeing takes over. That work will continue.

• DID – C-17 Post-Production: The Long Goodbye. Close-out funding to store the production equipment, data, etc. when the line shuts.

• DID – C-17 Production Line Out of Time?

• OC180 News (Aug 10/09) – Round 7 in the Fight for the Boeing C-17 Production Line and Its 5,000 Long Beach Jobs–a Continuing Monday Morning series

• Reuters (Jan 20/09) – Obama renews pledge to invest in military. There are rumors that the C-17 will be green-lighted again, but they prove to be untrue. The administration continues to fight new C-17 appropriations, using a series of escalating threats.

• DID (May 8/08) – C-17A, F-22A May Get Reprieves from Congress

• DID – Interactive: C-5s vs. C-17s in Washington

• DID – Airbus A400M Aerial Transport: Delays and Development

• DID – NATO’s AN-124s: A Russian Solution to the Airlift Problem… And More?

PTDS Aerostat
(click to view larger)

$142 million to Lockheed Martin for additional PTDS. (June 8/10)

The US Army is using tethered aerostats with multi-mission sensors to provide long endurance intelligence, surveillance, reconnaissance (ISR) and communications in support of coalition forces in Iraq and Afghanistan.

The aerostat-based Persistent Threat Detection System (PTDS) is one of the ISR tools the Army uses to detect improvised explosive devices (IEDs) buried along roadsides…

An aerostat is a lighter-than-air craft that relies on a ground tether for movement and often for power as well, as opposed to blimps which are self-powered, free-flying craft. DID has more coverage of military applications of aerostats.

The aerostat for the PTDS [PDF] is smaller than the aerostat used in the Tethered Aerostat Radar System (TARS), which provides surveillance along the US-Mexican border. The PTDS aerostat is 115 feet long with 74,000 cubic feet of helium and a 1,102 pound payload; the TARS aerostat made by Lockheed Martin is 1,640 feet long with 420,000 cubic feet of helium and a 2,205 pound payload.

In addition, the mooring for the PTDS aerostat is mobile and relocatable, making it suitable for use in combat situations and difficult terrain.

In addition to the aerostat, the PTDS includes:

• tether (powered with fiber optics)
  
• mobile mooring platform
  
• mission payloads
  
• ground control shelter
  
• maintenance and officer shelter
  
• power generators and site handling equipment

The PTDS uses a wide-area, secure communications backbone to communicate threat information from multiple sensors to the commanders in the field.

Contracts and Key Events

January 25/17: Another FMS cleared by the State Department is the provision of ten 74K Persistent Threat Detection System (PTDS) Aerostats and related equipment, support, and training to the government of Saudi Arabia. Estimated in the region of $525 million, the sale also includes: 14 Ground Moving Target Indicator (GMTI) Radars; 26 MX-20 Electro-Optic Infrared (EO/IR) Cameras; and 10 Communications Intelligence (COMINT) Sensors. PTDS is a large helium-filled lighter than air system designed by Lockheed Martin to provide soldiers long range intelligence, surveillance, reconnaissance and communication assistance.

June 8/10: Lockheed Martin announces that it received a $142 million award from the US Army to proivde additional PTSD to support coalition forces in Afghanistan. The majority of the work on the systems will be performed in Akron, OH, with additional work in Cape Canaveral, FL, Moorestown, NJ, and Owego, NY.

Oct 7/09: Lockheed Martin announces that it received a $133 million award to provide the US Army with 8 additional PTDS to support coalition forces in Iraq and Afghanistan.

Nov 29/06: Lockheed Martin announces that it received a $77.5 million contract to provide additional PTDS to support coalition forces in Iraq and Afghanistan. Lockheed Martin will assemble and test the integrated aerostats, sensors, ground stations and mooring systems at its Defense and Surveillance Systems facility in Akron. Lockheed Martin delivered its first PTDS unit to the Army in 2004.

Americas

• The USAF is looking into testing a new low-cost light attack aircraft as soon as this spring. While Pentagon plans to acquire a new light attack platform are not new, the funding and scope of an earlier effort, the OA-X program, has never materialized into contracts being signed. However, if the experiment is approved and funded fully, the new platform will compliment the A-10 in close air support and reconnaissance missions.

• Industry has been asked by the US Army to submit proposals for a missile that can dispense a swarm of quadcopters. Once released, the drones will decelerate and seek out their target and terminate them by landing on them, detonating explosively formed penetrators. Possible targets named in the solicitation are tanks and large caliber gun barrels, vehicle roofs, fuel storage barrels, and ammunition storage sites. The call out comes shortly after the launching of a swarm of 103 Perdix micro-drones from three separate F/A-18 Super Hornets as part of Pentagon efforts to integrate micro-drones for use on surveillance missions.

• Boeing is developing a parachute kit to fit on the Sensor-Hosting Remote Autonomous Craft (SHARC) unmanned surface vehicle. The company purchased SHARC’s developer, Liquid Robotics, last month and sees great potential in SHARC as a persistent sensor platform for long-dwell surveillance needs, such as anti-submarine warfare, anti-surface warfare, and intelligence, surveillance and reconnaissance. SHARC is capable of towing underwater sensors and sensor arrays and is being promoted as an ideal solution for anti-submarine and anti-surface warfare missions.

Middle East North Africa

• Rolls Royce will provide MTU diesel engines to the Turkish Coast Guard for use in their six new search and rescue vessels currently under construction at Damen Shipyards. Ankara is expecting all of the boats to be delivered by the end of 2017 with the EU providing financial support for the effort. Since 2015, the UK has sold $405 million-worth of arms to Turkey, representing a growing market for UK defense exports. However, human rights and anti-arms trade campaigners have criticized the deals, saying London is putting arms deals ahead of human rights, a reference to the ongoing political crackdown by Turkish authorities in the wake of a failed coup against the Erdogan regime.

Europe

• Safran Electronics will acquire fellow French aerospace firm Zodiac Aerospace in a $9 billion deal, creating the world’s third-largest aircraft equipment provider. Following the acquisition of Zodiac, Safran will gain access to the companies assets, which include seats, cabin interiors, power distribution, and fuel equipment. Safran says it will use its new capabilities to push for the development of “more electrical aircraft.” The pending merger will now be subject to approval from regulatory agencies and is expected to be finalized by early 2018.

• UK PM Teresa May has come under fire following news that ministers covered up a failed test of the Trident nuclear deterrent weeks before a crucial Commons vote on the future of the £40 billion program. Previous tests have been publicized by the Government. Details of the test, which happened last July, still remain undisclosed to the public, and opposition MPs are calling for an inquiry into the incident.

Asia Pacific

• Stocks of certain munitions in the Indian armed forces are so low, they are at half the reserves necessary to conduct 40 days of intense fighting. Urgent requirements for the Indian Air Force call for 50,000 rounds of 30mm ammunition for the GSh-30-1 gun and more than 60,000 rounds of 12.7 mm ammunition to be fired from the Yak-B Gatling gun. The munitions are used on IAF Su-30MKI and Mi-35 platforms. Efforts in the last three months have seen New Delhi rush to buy $1 billion worth of arms and ammunition from Russia and Israel for the Indian Army and Navy under a fast track procedure instead of relying on the notoriously slow bureaucratic channels.

• Confusion is rife in Indonesia as military and government fail to collaborate over the purchase of AW101 helicopters. Defense Minister Ryamizard Ryacud told reporters that he needs to “coordinate” with the new Air Force chief over the procurement. Initially planned to be used as Presidential VIP transport before being scrapped by President Joko “Jokowi” Widodo, the deal was then pursued by the air force for use in combat and rescue operations.

Today’s Video

Boeing’s SHARC:

Trident II D5 Test Launch
(click to view full)

Nuclear tipped missiles were first deployed on board US submarines at the height of the Cold War in the 1960s, to deter a Soviet first strike. The deterrence theorists argued that, unlike their land-based cousins, submarine-based nuclear weapons couldn’t be taken out by a surprise first strike, because the submarines were nearly impossible to locate and target. Which meant that Soviet leaders could not hope to destroy all of America’s nuclear weapons before they could be launched against Soviet territory. SLBM/FBM (Submarine Launched Ballistic Missile/ Fleet Ballistic Missile) offered shorter ranges and less accuracy than their land-based ICBM (Inter-Continental Ballistic Missile) counterparts, but the advent of Trident C4 missiles began extending those ranges, and offering other improvements. The C4s were succeeded by larger Trident II D5 missiles, which added precision accuracy and more payload.

The year that the Trident II D5 ballistic missile was first deployed, 1990, saw the beginning of the end of the missile’s primary mission. Even as the Soviet Union began to implode, the D5’s performance improvements were making the Trident submarine force the new backbone of the USA’s nuclear deterrent – and of Britain’s as well. To ensure that this capability was maintained at peak readiness and safety, the US Navy undertook a program in 2002 to replace aging components of the Trident II D5 missile called the D5 Life Extension (LE) Program. This article covers D5 LE, as well as support and production contracts associated with the American and British Trident missile fleets.

D5 Life Extension Program

By the time the latest D5 version was deployed, the existence of the Soviet Union itself was in doubt. The previous year, the Soviet’s Eastern European client states began to fall, symbolized by the destruction of the Berlin Wall. Then the Soviet Union itself began to crumble, with various Soviet republics rebelling against the central government in 1990. In 1991, a failed coup attempt against Soviet reformer Mikhail Gorbachev brought Boris Yeltsin to power, who promptly dissolved the Soviet Union.

The end of the Soviet Union and the easing of the Soviet first strike threat did not end the need for a nuclear deterrent. States like Russia and China still have them, North Korea is the first nuclear-armed rogue state but will not be the last, and non-state actors remain a potential threat, given instability in key countries like Pakistan. The US nuclear deterrent got smaller, but it did not go away – and as it became smaller, the importance of the Trident fleet rose. Especially given Britain’s use of the same missiles as its sole nuclear deterrent.

The Trident C-4 has been in service since 1979, but the D-5 Trident II is more recent. Its 1st firing on March 21/89, from the USS Tennessee, almost ended the program. Fortunately, fixes were made in an environment of “tell the truth, only the truth, tell it quickly…” A set of 7 successful test-launches from 1989-1990 saved the program, bringing its funds back from escrow. As of January 2013, it has had a remarkable 143 consecutive flight test successes since that initial launch.

Trident II D5

First deployed in 1990 and scheduled for operational deployment until 2042, 12 of the USA’s 14 SSBNs have been outfitted with Trident II D-5 missiles, and the other 2 were scheduled to be back-fitted as opportunity permits.

The Trident II D5 LE Program is intended to extend the service life of the weapon system until 2042, to match the hull life of the Ohio-class submarine. Under the program, 108 additional missiles [PDF] are being purchased, in order to meet long-term inventory requirements.

The LE program involves updating the missile’s electronics, guidance and reentry systems. In particular, the Mk6 LE guidance system is a replacement for the aging Mk6 guidance system, which used 1980s technology that isn’t in production any more. The Next Generation Guidance (NGG) program aims to develop the Mk6 LE as a modern replacement that can achieve the same or better performance as the guidance systems that are breaking down. This requires development of precision instruments, sensors, and radiation hardened architectures, in order to adapt the underlying commercial technologies for use in a must-not-malfunction nuclear weapons system.

The prime contractor [PDF] for the Trident II D5 program is Lockheed Martin, who has managed all of the US submarine-launched ballistic missile/ fleet ballistic missile (SLBM/FBM) programs since the first generation Polaris. Charles Stark Draper Labs is the inventor of the guidance system.

Contracts and Key Events

1989-03-21: Avoid this.

These entries cover overall support and surveys of the American and British Trident fleets, Trident LE efforts, associated testing, and production of new materials and missiles. It does not cover work on the launcher systems rather than the missiles themselves, unless it’s a multiple-items contract that also includes missile work. Unless otherwise noted, the US Navy’s Strategic Systems Programs in Arlington, VA issued the contracts. As one might expect with such secretive work, many of the contracts are sole-source or non-competed.

Note that despite the recent article improvements, materials before FY 2007 may not be fully up to date.

FY 2014 – 2017

SSBN design 101
click for video

January 23/17: UK PM Teresa May has come under fire following news that ministers covered up a failed test of the Trident nuclear deterrent weeks before a crucial Commons vote on the future of the £40 billion program. Previous tests have been publicized by the Government. Details of the test, which happened last July, still remain undisclosed to the public, and opposition MPs are calling for an inquiry into the incident.

July 19/16: Lockheed Martin has won a $21 million US Navy contract to provide Trident II D5 missiles to the service. The latest submarine-launched fleet of ballistic missiles, Trident II follows the Polaris, Poseidon and Trident I C4 programs. Trident was first deployed in 1990 and is currently deployed on board US Ohio-class and British Vanguard-class submarines.

Sept 19/14: Production. Lockheed Martin Space Systems in Sunnyvale, CA receives a $146.3 million fixed-price-incentive, cost-plus-incentive-fee, and cost-plus-fixed-fee contract modification for new Trident II (D5) missile production, D5 Life Extension development and production, and D5 Deployed Systems Support. $128.1 million is committed immediately, including $48.5 million from Britain. Options could raise the contract to $828.4 million if exercised.

Work will be performed in Sunnyvale, CA (35.12%); Magna, UT (16.55%); Kings Bay, GA (8.26%); Cape Canaveral, FL (7.57%); Culpeper, VA (4.51%); Silverdale, WA (4.43%); Bloomington, Minnesota (4.32%); Kingsport, TN (2.51%); El Segundo, CA (1.59%); Lancaster, PA (1.57%); Oakridge, TN (1.44%); and other various locations less than 1% each (12.13%). Work is expected to be complete by Nov 30/19. US Strategic Systems Programs in Washington Navy Yard, DC manages the contract (N00030-14-C-0100, PZ0001).

D5 & LE missile production

Sept 19/14: Infrastructure. Lockheed Martin Space Systems in Sunnyvale, CA receives a $34.2 million cost-plus-incentive-fee, cost-plus-fixed-fee contract modification for all facilities, equipment, and processes required for successful activation and support of a Trident II (D5) missile storage facility at Camp Navajo, AZ, plus design and delivery of specialized support equipment for D5 missile movement and storage. All funds are committed immediately, using FY 2013 US Navy weapons budgets.

Work will be performed at the following locations: Cape Canaveral, FL (38.29%); Oakridge, TN (30.13%); Magna, Utah (10.48%); Sunnyvale, CA (10.02%); Merritt Island, FL (4.45%); Rensselaer, Indiana (1.85%); Arlington, WA (1.26%); Bangor, WA (1.01%); St. Mary’s, GA (0.60%); Tullahoma, TN (0.51%); St. Augustine, FL (0.42%); Jacksonville, FL (0.37%); Poway, CA (0.31%); and other various locations (less than 0.10% each, 0.3% total); work is expected to be completed by Sept 30/19. US Strategic Systems Programs in Washington Navy Yard, DC manages the contract (N00030-13-C-0100, PO 0012).

July 1/14: FY15 Long-lead. Lockheed Martin Space Systems in Sunnyvale, CA received a $20 million unpriced-letter contract for long-lead materials, labor, planning and scheduling necessary to support FY 2015 Trident II D5 missile production.

Work will be performed at Sunnyvale, CA, with an expected completion date of Sept 30/19. All funds are committed immediately, using FY 2014 US Navy weapons budgets. This contract was a sole source acquisition pursuant to 10 USC. 2304(c)(1) by US Strategic Systems Programs in Washington Navy Yard, DC (N00030-14-C-0100).

April 25/14: Navigation. The Charles Stark Draper Laboratory Inc. in Cambridge, MA receives a maximum $283.1 million firm-fixed-price, fixed-price-incentive, and cost-plus-incentive-fee contract for the ongoing Trident (D5) MK 6 Guidance System Repair Program. This includes failure verification, test, repair and recertification of inertial measurement units, electronic assemblies, and electronic modules.

All funds are committed immediately, using FY 2014 US Navy funds and funds from Britain ($40 million). Work will be performed in Pittsfield, MA (42%); Minneapolis, Minn. (29%); Clearwater, FL (22%); Cambridge, MA (6%); and Terrytown, NY (1%), with an expected completion date of April 30/17. This contract is a sole source acquisition pursuant to 10 U.S.C. 2304(c)(1). Strategic Systems Program, Washington, D.C. manages the contract (N00030-14-C-0001).

April 1/14: UK Support. Lockheed Martin Space Systems in Sunnyvale, CA receives a $21.3 million cost-plus-fixed-fee, level of effort, completion type contract to provide the United Kingdom (UK) with Trident II engineering and technical support services and deliverable materials.

All funds are committed immediately. Work will be performed in Sunnyvale, CA (76.4%); Cape Canaveral, FL (12.5%); Coulport, Scotland. (4.4%); Aldermaston, England (3.3%); St. Mary’s, GA (2%); Silverdale, WA (less than 1%), Campbell, CA (less than 1%), Denver, CO (less than 1%), other US cities (less than 1%); and Italy (various cities less than 1%), with an expected level-of-effort completion date of March 31/15 and deliverable items completion date of June 30/16. This contract was a sole-source acquisition pursuant to 10 USC. 2304(c)(4). The US Department of the Navy’s Strategic Systems Programs Office manages the contract (N00030-14-C-0028).

Dec 19/13: Support. BAE Systems receives a 3-year, $171 million contract to continue providing engineering and integration support to the US Navy’s Trident II D-5 submarine-launched ballistic Missiles. The company has supported the US Navy’s program for more than 50 years, through the Polaris, Poseidon, and Trident lifecycles. They’re also involved to some degree in the US/UK Common Missile Compartment program.

BAE Systems’ support for the Fleet Ballistic Missile program is performed in Kings Bay, GA; Bangor, WA; Mechanicsburg, PA; Norfolk, VA; and the Washington, DC area. Sources: BAE, “Maintaining the U.S. Navy’s Fleet Ballistic Missile Program under a $171 Million Contract”.

Dec 12/13: Support. Northrop Grumman Systems Corp. in Sunnyvale, CA receives an $112.9 million firm-fixed-price, cost-plus-incentive-fee, cost-plus-fixed-fee contract. They’ll perform Trident II Underwater Launcher System and Advanced Launcher Development Program Support, technical engineering services to support the CMC Development and Prototyping effort, and other specialized technical support. The maximum dollar value, including the base period and one option year, is $220.3 million.

ULS/ AL: Includes ongoing support for the TRIDENT II D-5 and the SSGN underwater launcher subsystem, Engineering Refueling Overhaul shipyard support, spares procurement, US and UK launcher trainer support, Vertical Support Group E-mount and shim procurement, Nuclear Weapons Safety and Security Review, Missile hoist overhaul, underwater launch technology support, US and UK SSP Alterations and non-compliance report projects, gas generator refurbishment, and case hardware production.

CMC: Assess and analyze technologies and concepts to support the selection of a preferred system concept, which includes the identification of critical cost and risk impacts as a result of immature launcher technologies and/or immature requirements.

Specialized: Technical support of TRIDENT II D-5 Missile tube closure production, technical engineering services, and tactical hardware production efforts for the New Strategic Arms Reduction Treaty.

All funds are committed immediately, using a combination of US Navy FY 2014 procurement, R&D, and O&M budgets, and British funds ($11.5 million). Work will be performed at Sunnyvale, CA (78%); Kings Bay, GA (7%); Bangor, WA (6%); St. Charles, MO (5%); Gardena, CA (2%); Camarillo, CA (1%); and Los Angeles, CA (1%); with an expected completion date of Sept 30/18. This contract was a sole source acquisition in accordance with 10 U.SC 2304(c)(1), managed by the US Strategic Systems Programs in Washington, DC (N00030-14-C-0011).

Dec 11/13: Interstate Electronics Corp., Anaheim, CA receives a $47,401,675 cost-plus-incentive fee, cost-plus-fixed-fee, level of effort, completion type contract for specialized technical support for Trident II flight test operations and data acquisition, systems engineering, post-mission processing and analysis, instrumentation refreshes, and strategic weapons system training program support. The maximum dollar value, including the base period and 2 option years, is $177.3 million.

Funds from a number of different budget lines are committed, ranging from FY 2012 – 2014. Work will be performed in Anaheim, CA (55.5%); Cape Canaveral, FL (25%); Newark, CA (3.2%); Bremerton, WA (3%); Kings Bay, GA (3%); Norfolk, VA (3%); Washington, DC (3%); Silverdale, WA (2%); Austin, (1.3%); San Jose, CA (less than 1%); Huntsville, AL (less than 1%); Sunnyvale, CA (less than 1%); and El Segundo, CA (less than 1%); with an expected completion date of Sept 30/16. This contract was a sole-source acquisition pursuant to 10 U.SC 2304(c) (5). The Department of the Navy, Strategic Systems Programs Office, Washington, DC manages the contract (N00030-14-C-0006).

Dec 6/13: Navigation. Lockheed Martin, Mission Systems & Training in Mitchel Field, NY receives a $58.8 million cost-plus-incentive fee, cost-plus-fixed fee contract for United States and United Kingdom D-5 navigation subsystem engineering support services. This contract provides for US and UK fleet support, US and UK trainer systems support, OH-class SSBN engineered refueling overhauls, US and UK SSI4 trainer system, SSBN-R strategic weapon training system and training system development, UK successor support, software modernization and Linked Autonomous Programmed Navigational Operational Trainer modernization. The maximum dollar value, including the base period and 1 option-year, is $114.2 million.

Funds are committed from a number of FY 2014 budget lines, and from the UK ($6.9 million). Work will be performed in Mitchel Field, NY (97%), Clearwater/Oldsmar, FL (2%) and Manassas, VA (1%), with an expecteDCmpletion date of April 2017. This contract was a sole-source acquisition in accordance with 10 U.SC 2304(c)(1), managed by the US Navy’s Strategic Systems Programs in Washington, DC (N00030-14-C-0002).

March 29/13: UK Support. Lockheed Martin Space Systems Co. in Sunnyvale, CA receives an $18.7 million cost-plus-fixed-fee contract to provide engineering/technical support for the UK’s Trident II Missile Systems. This includes: UK FBM Program efforts; deliverable materials; and on-site technical support in Britain.

Work will be performed in Sunnyvale CA (72.9%); Cape Canaveral, FL (12.3%); Coulport, Scotland and Aldermaston, England (10.3%); St. Mary’s, GA (2.7%); other US sites (0.8%); Silverdale, WA (0.7%), and Poway, CA (0.3%), and is expected to be complete by by March 2015. All funds are committed immediately, and the UK’s FMS agent will be the US Navy’s Strategic Systems Programs in Washington, DC (N00030-13-C-0034).

Nov 5/13: Production. Lockheed Martin Space Systems Co. in Sunnyvale, CA receives an initial $8.4 million fixed-price-incentive, cost-plus-incentive-fee, and cost-plus-fixed-fee modification to a previously awarded un-priced letter contract. Options could push it as high as $803.2 million for new Trident II D5 missile production, D5 life extension development and production, and D5 deployed systems support. The funding breakdown, subject to availability, is:

• $673.4 million FY 2014 Navy procurement
  
• $60.8 million FY 2014 Navy O&M, all of which expires on Sept 30/14
  
• $23.1 million FY 2014 RDT&E
  
• $6.5 million FY 2014 Navy other procurement
  
• $35.7 million British government

Work will be performed in Sunnyvale, CA (34.31%); Brigham City, UT (21.55%); St. Mary’s, GA (9.49%); Cape Canaveral, FL (5.59%); Silverdale, WA (5.25%); Pittsfield, MA (3.23%); Kingsport, TN (2.81%); Gainesville, VA (2.09%); El Segundo, CA (1.84%); Clearwater, FL (1.74%); Lancaster, PA (1.67%); Inglewood, CA (1.57%); Camarillo, CA (0.75%); Santa Fe Springs, CA (0.62%); Oakridge, TN (0.57%); Arlington, WA (0.5%); St. Charles, MO (0.36%); Joplin, MO (0.36%); Defew, NY (0.34%); Hollister, CA (0.33%); Diamond Springs, CA (0.33%); Santa Ana, CA (0.28%); Miamisburg, OH (0.27%); Bethel, CT (0.24%); Orlando, FL (0.24%); Colorado Springs, CO (0.22%); Torrance, CA (0.20%); Wenatchee, WA (0.19%); Santa Clara, CA (0.14%); Englewood, CO (0.14%); San Diego, CA (0.12%); San Jose, CA (0.12%); Santa Cruz, CA (0.12%); Simi Valley, CA (0.11%); Simsbury, CT (0.10%); and other various locations of less than 0.10% each (2.21%), and work is expected to be complete in December 2014. If options are exercised, all work will continue to November 2018. The US Strategic Systems Programs in Washington, DC manages the contract (N00030-13-C-0100, PZ0001).

D5 & LE missile production

FY 2013

Missile contract; Reentry body contract; Guidance systems contract.

Launch!
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Sept 13/13: FY 2014 long-lead. Lockheed Martin Space Systems Co., Sunnyvale, Calif., is being awarded a $15.2 million un-priced letter contract for FY 2014 long lead Trident D5 materials and associated labor, planning, and scheduling. All funds are committed immediately. Work will be performed in Sunnyvale, CA, and the contract is expected to be complete by Sept 30/18. This contract is a sole source acquisition in accordance with FAR 6.302-1 and 10 U.S.C.2304c1 (N00030-13-C-0100).

March 7/13: Navigation. Charles Stark Draper Laboratories, Inc. in Cambridge, MA receives a sole-source $257.8 million to provide Trident II (D5) Guidance System Strategic Program Alteration (SPALT) materials including: labor and consumable material to meet requirements for the guidance system on-going SPALT of MK6 MOD 1; test and procure data package assemblies; and circuit card assembly materials with electronic components.

All contract funds are committed immediately, with $15 million expiring on Sept 30/13, at the end of FY 2013. Work will be performed in Pittsfield MA (84%); Cambridge, MA (7%); Clearwater, FL (5%); Terrytown, NY (2%); El Segundo, CA (1%) and other (1%); and is expected to be complete by Dec 31/16 (N00030-13-C-0007).

March 7/13: Program Support. Aero Thermo Technology, Inc. in Huntsville, AL receives a $6.8 million cost-plus-fixed-fee contract to provide guidance systems, technical, analytical and program services to support the TRIDENT II SLBM. This contract contains options, which could bring the contract total to $20.7 million.

The US Navy and Air Force will conduct closely coordinated strategic ballistic missile technology development and application programs based on recommendations of the U.S. Strategic Command, Defense Planning Guidance, and Nuclear Posture Reviews. Work will be performed in Huntsville, AL, and is expected to be completed Dec 3/13, or Dec 31/15 if all options are exercised. $1.4 million is committed immediately, and $3.9 million will expire on Sept 30/13, at the end of the current fiscal year. (N00030-13-C-0013).

Dec 21/12: Production. Lockheed Martin Space Systems Co. (LMSSC), Sunnyvale, CA receives a $592.2 million fixed-price-incentive, cost-plus-incentive-fee, cost-plus-fixed-fee contract modification to perform additional work such as Trident II D5 Deployed Systems Support, D5 Life Extension Development and D5 Life Extension Production. $550 million is committed immediately, leaving $42.2 million to be spent as needed, plus another $1.082 billion in options to cover D5 Missile Production and additional support for deployed missiles. That creates a maximum contract total of $1.675 billion, if all options are exercised.

Work will be performed in Chandler, AZ (0.151%); Sunnyvale, CA (39.075%); El Segundo, CA (0.672%); Torrance, CA (0.322%); Camarillo, CA (0.245%); Santa Fe Springs, CA (0.240); San Jose, CA (0.174%); Modesto, CA (0.077%); Huntington Beach, CA (0.071%); Simi Valley, CA (0.041%); San Diego, CA (0.035%); Poway, CA (0.018%); Santa Ana, CA (0.014%); Santa Maria, CA (0.013%); North Hollywood, CA (0.013%); Santa Clara, CA (0.011%); Milpitas, CA (0.011%); Campbell, CA (0.009%); Upland, CA (0.004%); Pawcatuck, CT (0.117%); Simsbury, CT (0.049%); Cape Canaveral, FL (14.915%); Clearwater, FL (0.987%); Merritt Island, FL (0.044%); Titusville, FL (0.013%); Cocoa, FL (0.008%); St Mary’s, GA (12.246%); Atlanta, GA (0.049%); Rockford, IL (0.095%); Pittsfield, MA (2.466%); Elkton, MD (0.407%); Jackson, MI (0.148%); Joplin, MO (0.150%); St. Charles, MO (0.120%); Las Vegas, NV (0.334%); East Aurora, NY (0.079%); Miamisburg, OH (0.188%); Lancaster, PA (0.802%); Harrisburg, PA (0.082%); Bristol, PA (0.020%); Valencia, PA (0.015%); West Warwick, RI (0.002%); Kingsport, TN (1.247%); Oakridge, TN (0.247%); Round Rock, TX (0.022%); Brigham City, UT (11.356%); Salt Lake City, UT (0.093%); Gainesville, VA (3.544%); Fairfax, VA (1.381%); Silverdale, WA (7.242%); Poulsbo, WA (0.169%); Wenatchee, WA (0.103%); and Arlington, WA (0.064%), and is expected to be complete by Dec 30/17 – or April 30/18 if all options are exercised.

Technically, $291.1 million will expire at the end of the current fiscal year on Sept 30/13, but more than that is already committed for payment. The contract was not competitively procured in accordance with FAR 6.302-1 and 10 U.S.C. 2304c1 (N00030-12-C-0101, PZ0001).

D5 LE & Missile Production

Dec 17/12: Support. Excelis Inc., Colorado Springs, Colo., is being awarded a $15.7 million cost-plus-fixed-fee contract to provide professional, technical, programmatic, and operational engineering services to September 2016. $4,371,011 will be obligated at the time of award, and this contract contains options which could extend performance to March 31/16, and raise its value to $44.4 million. Their work will support of Navy Reentry Systems programs, including:

• Reentry Body (RB) systems assessment, vulnerability, and nuclear safety and surety support
  
• RB Life extension studies and analysis
  
• Support for the development of refurbished reentry systems
  
• Support for Strategic Systems Program’s declassification review program
  
• support for Nuclear Weapons System Safety
  
• Support to weapons facilities manager

Work will be performed in Colorado Springs, CO (95%); College Park, MD (2%); and various locations throughout the continental USA (3%). This contract was not competitively procured in accordance with 10 U.S.C. 2304c1 by the Strategic Systems Program, in Washington, DC (N00030-13-C-0016).

FY 2012

Missile orders; SHIPALT kits; Mk6 LE work; Support contracts; Common Missile Compartment integration

British firing
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Sept 28/12: Support. Northrop Grumman Systems Corp. in Sunnyvale, CA receives a $76.8 million firm-fixed-price, fixed-price-incentive, cost-plus-incentive-fee, cost-plus-fixed-fee contract to support the Trident II fleet, which could rise as high as $111 million with options. This will include:

1) Ongoing SSBN/SSGN fleet support including engineering refueling overhaul shipyard support, spares (SSP), SSP alterations and non-compliance report projects for the USA & UK, launcher trainer support for the USA & UK, vertical support group e-mount and shims, nuclear weapons safety and security review, missile hoist overhaul, underwater launch technology support, gas generator refurbishment, and case hardware.

2) Specialized technical support includes missile tube closure production, technical engineering services, and tactical hardware production efforts for the New Strategic Arms Reduction Treaty

3) New designs. Technical engineering services and analysis to support the USA & UK’s Advanced Launcher Development Program and Common Missile Compartment concept development and prototyping. This work will support the military’s efforts to pick a preferred system concept, including both critical costs, and clear awareness of risks from immature launcher technologies and/or immature requirements. The technology development phase for the next-generation launcher will be based on those conclusions.

The contract was not competitively procured. Work will be performed in Sunnyvale, CA (79%); Kings Bay, GA (10%); Silverdale, WA (10%); and Camarillo, CA (1%), and will run to Sept 30/15. Contract funds will not expire at the end of the current fiscal year. This contract was not competitively procure in accordance with l0 U.S.C. 2304c1, and 10 U.S.C. 2304c4. The Strategic Systems Programs, Washington, D.C., is the contracting activity (N00030-13-C-0010).

Sept 27/12: CMC integration. Lockheed Martin Space Systems Co. in Sunnyvale, CA receives a sole-source $51.6 million cost-plus-fixed-fee contract for engineering efforts to support next-generation SSBN programs. The firm was deemed to be the only company that could integrate the TRIDENT II Missile and Reentry Strategic Weapon System subsystems into the CMC, and design an updated missile service unit that will be compatible with both current and new submarine fleets. With options, this contract could rise to $52.2 million.

Work will be performed in Cape Canaveral, FL (50%); Sunnyvale, CA (34%); Syracuse, NY (10%); Magna, UT (2%); Washington, DC (1%); yet to be determined locations (2%); and other locations of less than 1% (1% TL); and will run until Dec 31/17. Strategic Systems Programs, Washington, D.C., is the contracting activity (N00030-12-C-0058).

Sept 27/12: D5 LE. Charles Stark Draper Laboratories, Inc. in Cambridge, MA receives a $113.1 million cost-plus-incentive-fee, cost-plus-fixed-fee contract for a wide variety of engineering and R&D services, which could grow to $304.6 million if all options are exercised. Work can include:

1) Trident II support. That includes specialized tactical engineering services, logistics services, fleet support services, test equipment, and guidance SSP alteration services to test, guidance subsystems maintenance and fixes; test equipment, and related support equipment.

2) Trident D5 MK6 MOD 1. Test and evaluate engineering development units and preproduction units systems to verify performance, and document items for flight tests, qualification, and production support.

3) R&D related to TRIDENT II D-5 guidance and reentry systems, including specialized technical knowledge and support for hypersonic guidance (ballistic missiles fly at well over Mach 5), navigation and control applications utilizing an integrated avionics computer and Global Positioning System.

Work will be performed in Cambridge, MA (69%); Pittsfield, MA (19%); El Segundo, CA (10%), and Clearwater, FL (2%), and the contract run through FY 2015 to Sept 30/15. The contract was not competitively procured. Strategic Systems Programs, Washington, D.C., is the contracting activity (N00030-13-C-0005).

July 3/12: Long-lead. Lockheed Martin Space Systems Co. in Sunnyvale, CA received a $12.2 million unfinalized contract to provide the long lead time material for FY 2013 Trident II D5 missile production, as well as the required labor, planning, and scheduling.

Work will be performed in Sunnyvale, CA., and is expected to be complete by Sept 30/17. This contract was not competitively procured pursuant to FAR 6.302.1 and l0 U.S.C. 2304c1 (N00030-12-C-0101).

June 5/12: Navigation. Boeing in Huntington Beach, CA received a $10.2 million cost-plus-fixed-fee contract to provide TRIDENT II (D5) navigation test equipment upgrades. They’ll upgrade test equipment for theodolites; offer drift test station binnacle overhaul kits and necessary contingency replenishment items and program plans; perform electrostatically supported gyro container power supply strategic systems programs alteration (SPALT); and work on resolver replacement, network board SPALT, and TR-C5 A/C 1/6 software SPALT. Options could bring the contract’s total value to $15.6 million.

Work will be performed in Huntington Beach, CA (96.4%), and Heath, OH (3.6%), and is expected to be complete by June 30/15. This contract was not competitively procured by US Strategic Systems Programs in Washington, DC (N00030-12-C-0026).

May 31/12: Testing. Lockheed Martin reminds us that the US Navy’s 4 successful Trident D5 test flights from April 14-16/12, from the submerged USS Maryland in the Atlantic Ocean, bring the total number of successful Trident flight tests to 142 since design completion in 1989.

Thankfully, there have been no operational flights to provide data.

April 25/12: D5 LE. Charles Stark Draper Laboratories, Inc. in Cambridge, MA receives a $236.7 million firm-fixed-priced, fixed-price-incentive, cost-plus-fixed-fee, cost-plus-incentive-fee contract to produce modified Trident II (D5) Missile guidance systems.

Work will be performed in Pittsfield MA (42.2%); Cambridge, MA (26.7%); Clearwater, FL (22.3%); El Segundo, CA (7.2%); and Tarrytown, NY (1.6%). Work will run to Sept 30/16, the end of FY 2016. This contract was not competitively procured (N00030-12-C-0005).

April 2/12: UK support. Lockheed Martin Space Systems Co. in Sunnyvale, CA receives an $18.4 million cost-plus-fixed-fee contract to provide engineering and technical support for the UK’s Trident D5 Missile Systems.

Work will be performed in Sunnyvale, CA (70.8%); St. Mary’s, GA (13.3%); Coulport, Scotland & Aldermaston, England (9.3%); Cape Canaveral, FL (2.8%); Cocoa, FL (2%); Silverdale, WA (0.5%); and other various location in the United States (1.3%), and will run to March 31/13. The contract was not competitively procured (N00030-12-C-0024).

Dec 15/11: Multi-year contracts. Lockheed Martin Space Systems in Sunnyvale, CA receives almost $1.2 billion in cost-plus-incentive-fee, cost-plus-fixed-fee, fixed-price-incentive contract modifications, associated with the support and production of Trident II D5 missiles. $321.4 million will expire at the end of the current fiscal year, on Sept 30/12, but work will run to April 30/17.

The $427.4 million deployed systems support (DSS) contract involves various forms of engineering and operational support, including trainers and training, spares and repairs, flight test analysis and range support, safety assurance including Nuclear Weapon Security; and development, production and installation of special projects.

The unfinalized but not-to-exceed $772.2 million award for TRIDENT II D5 production includes missile bodies, re-entry bodies, D5 instrumentation systems and support equipment, components and requalification activities as part of D5 life extension requirements, and alternate release assembly production.

Work will be performed in Sunnyvale, CA (65.92%); Cape Canaveral, FL (10.33%); St. Mary’s, GA (7.18%); Bangor, Silverdale, WA (7.15%); Brigham City, UT (2.20%); Torrance, CA (1.01%); Pittsfield, MA (0.76%); Poulsbo, WA (0.75%); Clearwater, FL (0.26%); San Jose, CA (0.24%); Elkton, MD (0.10%); Chandler, AZ (0.08%); East Aurora, NY (0.07%); Gainesville, VA (0.07%); Lancaster, PA (0.06%); Rockford, IL (0.02%); and various other locations (3.79%). These contracts were not competitively procured (N00030-12-C-0100, PO 0001).

Multi-year production & support contracts

Dec 9/11: Support. BAE Systems in Rockville, MD receives a $58.3 million cost-plus-fixed-fee, cost-plus-incentive-fee contract to provide Systems Engineering Integration support for the TRIDENT II D5 Strategic Weapon System (SWS) Program, the SSGN Attack Weapon System (AWS) Program, and the Common Missile Compartment (CMC) Program. Options could bring the contract’s total value to $123.3 million.

Work will be performed in Rockville, MD (70%); Washington, DC (20%); St. Mary’s, GA (5%); Bangor, WA (4%); and Barrow-in-Furness, Cumbria, United Kingdom (1%), and is expected to be completed Sept 30/12, or Sept 30/13 if the options are exercised. $38.3 million will expire at the end of the current fiscal year, on Sept 30/12. This contract was not competitively procured (N00012-C-0009).

Dec 2/11: D5 LE. Charles Stark Draper Laboratories, Inc. in Cambridge, MA receives a $120.8 million firm-fixed-price, fixed-price-incentive, cost-plus-incentive-fee contract modification. They’ll provide Trident II D5 Guidance System micro circuit wafers, and Strategic Systems Programs alterations materials.

Work will be performed in Pittsfield, MA (83.5%); Cambridge, MA (7%); by Honeywell, Inc. in Clearwater, Fla. (5%); Terrytown, NY (2.4%); El Segundo, CA (1.1%); and other places yet to be determined (less than 1%), and is expected to be complete on Dec 31/15. This contract was not competitively procured, and contract funds will not expire at the end of the current fiscal year (N00030-11-C-0014, PE0003).

Dec 2/11: Support. Northrop Grumman Electronic Systems – Marine Systems in Sunnyvale, CA, received an $83.2 million firm-fixed-price, cost-plus-incentive-fee, cost-plus-fixed-fee contract to provide FY 2012 support for the TRIDENT II D-5 launchers, submarines, and next-generation development efforts. This contract contains options, which could bring its total value to $123.1 million.

Northrop Grumman will provide services to help with existing SSBN/SSGN Underwater Launcher Systems; Engineering Refueling Overhaul shipyard support; spares procurement; United States and United Kingdom launcher trainer support; Vertical Support Group E-mount and shim procurement; TRIDENT II D-5 missile tube closure production; Launcher Initiation System (LIS) Critical Design Review and Nuclear Weapons Safety and Security Review; TRIDENT II D-5 missile hoist overhauls; underwater launch technology support; U.S. and U.K. Strategic Systems Programs alterations and non-compliance report projects; gas generator refurbishment and case hardware production; LIS Trainer Shipboard Systems Integration Increment 11 conversion; and ancillary hardware and spares.

Technical engineering services and container production restart efforts for the New Strategic Arms Reduction Treaty will also be included, as will technical engineering services to support the Advanced Launcher Development Program and Common Missile Compartment concept development and prototyping efforts for the U.S. and U.K.

Work will be performed in Sunnyvale, CA (80%); Bangor, WA (10%); and Kings Bay, GA (10%); and will end with the fiscal year on Sept 30/12, whereupon $45.3 million of these funds will expire; or it will end on Sept 30/14 if all options are exercised. The contract was not competitively procured (N00030-12-C-0015).

Dec 2/11: Support. Interstate Electronics Corp. in Anaheim, CA receives a $43 million cost-plus-incentive fee, cost-plus-fixed-fee contract to provide FY 2012 and 2013 United States and United Kingdom Lead System Integrator support. An option would add a year, and bring the contract value to $85.8 million.

Work will be performed in Anaheim, CA (77.2%), and Cape Canaveral, FL (22.8%), and will end on Sept 30/12, whereupon $37 million in contract funding expires; or on Sept 30/13 if the option is picked up. This contract was not competitively procured (N00030-12-C-0003).

Nov 25/11: Fire control. General Dynamics Advanced Information Systems, Inc. in Pittsfield, MA receives a $96 million cost-plus-incentive-fee, cost-plus-fixed-fee, fixed-price incentive contract to provide FY 2012 and FY 2013 engineering support to United States and United Kingdom Trident II SSBN Fire Control Subsystems, Ohio Class SSGN Attack Weapons Control Subsystem, and the Common Missile Compartment for the USA and UK’s next-generation nuclear missile submarines. This contract contains options which could bring its total value to $225 million over almost 4.5 years.

Work will be performed in Pittsfield, MA, and could run to April 14/16 with all options exercised. $35.1 million will expire at the end of the current fiscal year, on Sept 30/12. This contract was not competitively procured by the US Strategic Systems Programs in Washington, DC (N00030-12-C-0006).

Oct 26/11: Components. Lockheed Martin Space Systems Co. in Sunnyvale, CA receives a not-to-exceed $64.5 million cost-plus-incentive-fee completion contract modification. It exercises Trident II LE contract line item number 0030 for: 12 flight control electronic assemblies; 2 active inert missile (AIM) flight control electronic assemblies; 12 command sequencer assemblies; 12 interlocks package assemblies; 2 AIM interlocks package assemblies; and 12 missile inverters.

Work will be performed in Sunnyvale, CA (53.5%); Bloomington, MN (15.2%); El Segundo, CA (12.4%); Albuquerque, NM (11.5%); Clearwater, FL (3.7%); Camarillo, CA (2.5%); and Middletown, PA (1.2%). Work is expected to be complete by Sept 30/14 (N00030-11-C-0100).

Oct 17/11: Support. Lockheed Martin MS2 in Mitchel Field, NY receives a $40 million cost-plus-incentive-fee, cost-plus-fixed-fee contract to provide FY 2012-13 U.S. and U.K. TRIDENT II (D5) Navigation Subsystem Engineering Support Services. This contract contains options which could bring it to $94.6 million, if they’re all exercised.

Specific work includes U.S. and U.K. Fleet Support, U.S. and U.K. Trainer Systems Support, next-generation Ohio Replacement Program Support, Engineering Refueling Overhaul Support, and Navigation Subsystem studies.

Work will be performed in Mitchel Field, NY, (99.8%) and Manassas, VA (0.2%), and is expected to be complete by March 31/14. $30.7 million will expire at the end of the current fiscal year, on Sept 30/12. The contract was not competitively procured by the Strategic Systems Programs in Washington, DC (N00030-12-C-0002).

FY 2011

Missile orders; SHIPALT kits; Mk6 LE work; Support contracts; 3D Design software.

Sept 21/11: D5 LE. Cadence Design Systems, Inc. in San Jose, CA receives a $7.4 million firm-fixed price, 5-year software license and support for their commercial electronic design automation software tools. Cadence’s electronics design tools will be used as part of the D5 MK6 Life Extension Guidance System program.

This contract was sole-sourced, and the Pentagon describes the suite as “compatible with collected historical data and utilized for present efforts.” Work will be performed in San Jose, CA, and is expected to be completed by September 2016. The US Naval Surface Warfare Center, Crane Division in Crane, IN (N00164-11-G-GM23).

March 28/11: Support. Boeing in Huntington Beach, CA received a $31.1 million cost-plus-fixed-fee, cost-plus incentive contract to maintain, repair, and rebuild TRIDENT II D5 navigation equipment. This contract contains options which could bring its total value to $64.1 million.

Work will be performed in Huntington Beach, CA (89%), and Heath, OH (11%), and is expected to be complete Sept 30/14. $16.1 million will expire at the end of the current fiscal year, on Sept 30/11. This contract was not competitively procured (N00030-11-C-0002).

March 1/11: Testing. USS Nevada (SSBN 733) successfully launches an unarmed Trident II D5 missile off the coast of southern California, completing a 3.5 year long submarine refueling and overhaul certification process. The launch certifies the readiness of both the SSBN crew and the operational performance of the submarine’s strategic weapons system, before it becomes available for operations again. Nevada was commissioned in 1986 as the eighth Ohio-class fleet ballistic missile submarine.

US Navy Strategic Systems Programs (SSP) oversees the demonstration and shakedown operation (DASO) certification process, and more than 150 SSP employees and special guests were invited aboard US Military Sealift Command’s test range ship USNS Waters (T-AGS 45). This test marked the 135th consecutive successful test flight of the D5 missile since 1989. USN SW Region Navy Compass | Lockheed Martin.

Feb 15/11: UK Support. Lockheed Martin Space Systems Co. in Sunnyvale, CA received a $7.6 million cost-plus-fixed-fee contract modification to the United Kingdom technical services contract in support of the TRIDENT Strategic Weapons System, providing for “Collaborative Replacement Material Experiment Two.” We have no idea what that means, and don’t expect to be enlightened.

Work will be performed primarily in Sunnyvale, CA, and is expected to be complete by March 31/14 (N00030-10-C-0026, P00003)

Feb 14/11: Budgets. The Pentagon releases their FY 2012 budget request, and Pentagon documents indicate that the Trident D5 LE program may increase its budget in 2012. The FY 2012 request is for $1.398 billion ($88.9 million RDT&E and $1.309 billion procurement), a 17.8% jump compared to a FY 2011 request of $1.188 billion, which rose slightly from a FY 2010 request of $1.115 billion. The funds will go to:

“Funds the D5 Missile Life Extension Program replacing missile motors and other critical components, and production support (including flight test instrumentation and additional re-entry system hardware).”

Feb 10/11: D5 LE. Charles Stark Draper Laboratories, Inc. in Cambridge, MA receives a $57.7 million firm-fixed-price, fixed-price-incentive contract for Trident II (D5) Guidance System micro circuit wafers and “strategic systems programs alteration repair equivalent units”.

Work will be performed in Clearwater, FL (44.9%); Pittsfield, MA (29.9%); El Segundo, CA (13.6%); and Cambridge, MA (11.6%); and is expected to be complete by June 30/13. This contact was not competitively procured (N00030-11-C-0014).

Dec 27/10: D5 LE. Charles Stark Draper Laboratories, Inc. in Cambridge, MA, is being awarded a $494.3 million cost-plus-incentive-fee, cost-plus-fixed-fee contract for Trident II D5 work: guidance system tactical engineering support, guidance applications program, and life extension development.

Work will be performed in Cambridge, MA (82%); Pittsfield, MA (11%); Clearwater, FL (2%); and El Segundo, CA (5%). Work is expected to be complete by Sept 20/16, and $84 million will expire at the end of the current fiscal year. This contract was not competitively procured by US Strategic Systems Programs in Arlington, VA (N00030-11-C-0005).

Dec 10/10: Lockheed Space Systems Company in Sunnyvale, CA receives a $920.8 million fixed-price-incentive, cost-plus-incentive-fee, cost-plus-fixed-fee contract to provide Trident II (D5) missile production and deployed system support.

Work will be performed in Sunnyvale, CA; Bangor, WA; Kings Bays, GA; and Cocoa Beach, FL, and is expected to be complete by April 30/16. The contract funds will be drawn from multiple fiscal years – $44 million in FY 2009 weapon funds, and $304.7 million in FY 2011 O&NM funding, all of which will expire at the end of the current fiscal year on Sept 30/11. This contract was not competitively procured (N00030-11-C-0100).

Missile production

Dec 9/10: Support. L3/ Interstate Electronics Corp. in Anaheim, CA receives a $28.2 million cost-plus-incentive-fee, cost-plus-fixed-fee contract modification for specialized technical engineering services to operate, maintain and repair the TRIDENT II D5 test instrumentation subsystems, plus spares and related support equipment in support of the U.S. TRIDENT II D5 weapon systems.

Work will be performed in Anaheim, CA (80%); Cape Canaveral, FL (13%); Arlington, VA (5%); Austin, TX (1%); Los Angeles, CA (0.5%); and Sunnyvale, CA (0.5%), and is expected to be complete by Sept. 30/11. This contract was not competitively procured (N00030-10-C-0009, P00012).

FY 2010

Missile orders; SHIPALT kits; Mk6 LE work; Support contracts.

Aug 3/10: Support. Lockheed Martin Mission Systems & Sensors in Mitchel Field, NY won a $11.8 million cost-plus-incentive-fee, cost-plus-fixed-fee contract to provide: Trident II D5 strategic systems programs shipboard systems integration; Strategic weapon system navigation subsystem; Systems design and development; and Electrostatically supported gyro navigator refresh. This contract contains options which could bring the total contract value to $230.1 million.

Work will be performed in Mitchel Field, NY (35.4%); Huntington Beach, CA (27.9%); Oldsmar, FL (14.8%); Phoenix, AZ (14.2%); Cambridge, MA (7.2%); and Eagan, MN (0.5%). The contract is expected to end on July 30/15. This contract was competitively procured, with 2 offers received (N00030-10-C-0018).

July 7/10: Long-lead. Lockheed Martin Space Systems Co. in Sunnyvale, CA received an $11.3 million fixed-price incentive, cost-reimbursable, incentive contract to provide long-lead materials for the FY 2011 follow-on production of the Trident II D5 missile system.

Work will be performed in Sunnyvale, CA, and is expected to be complete Sept 30/15. This contract was not competitively procured (N00030-10-C-0101).

April 9/10: Testing. Teradyne in North Reading, MA received a $10.6 million, 5-year firm-fixed-price commercial basic ordering agreement for procurement of Teradyne Spectrum 9100 testers, which are used for the development of test program sets (TPSs) for Trident fire control, missile, and guidance electronic modules that are being redesigned as part of the D5 Life Extension program.

The TPSs will also be used for production testing of modules and for service life evaluation. The proposed acquisition is for additional testers, spare equipment, instrument calibration, training, and maintenance contracts that are required to maintain the necessary tester availability.

Work will be performed in North Reading, MA and is expected to be completed by April 2015. The Naval Surface Warfare Center, Crane Division, in Crane, IN manages the contract (N00024-09-C-6317).

March 29/10: UK Support. Lockheed Martin Space Systems Co. in Sunnyvale, CA receives a $17.7 million cost plus fixed fee contract to provide technical services that support Britain’s TRIDENT Strategic Weapons System.

Work will be performed in Sunnyvale, CA (70.69%); Cape Canaveral, FL (12.54%); St. Marys, GA (2.58%); Bremerton, WA (0.81%); and other locations inside and outside the United States (13.38%). Work is expected to be complete by March 31/11. This contract was not competitively procured (N00030-10-C-0026).

March 22/10: D5 LE. Lockheed Space Systems Co. in Sunnyvale, CA received a $24.1 million modification under a previously awarded contract (N00030-07-C-0100) for the procurement and testing of Trident II D5 missile commonality parts needed for the life extension program. The total contract value after this award is $1.2 billion (see March 28/07 entry).

Lockheed Martin will perform the work in Bloomington, MN (93.24%); Sunnyvale, CA (4.15%); Fairview, NC (2.46%); Marionville, MO (0.10%); and Clearwater, FL (0.05%), and expects to complete the work by May 31/12. Contract funds in the amount of $11 million expire at the end of the current fiscal year.

Feb 2/10: D5 LE. Charles Stark Draper Laboratory in Cambridge, MA received a $131.1 million cost-plus-incentive-fee contract for the Trident II D5 MK6 life extension guidance system. This contract is to procure long lead materials and circuit card assemblies to support the delivery of 20 MK6LE guidance systems.

Draper Lab will perform the work in Bloomington, MN (59%); Clearwater, FL (22%); Cambridge, MA (15%); and Pittsfield, MA (4%), and expects to complete it by June 30/15. This contract is a sole source acquisition by the US Navy’s Strategic Systems Programs in Arlington, VA (N00030-10-C-0015).

Dec 28/09: Testing. Lockheed Martin announces that the US Navy conducted a test flight of a Trident II D5 missile from the USS Alaska (SSBN 732) in the Atlantic Ocean. The test, conducted Dec 19/09, marks the 130th successful test flight of the Trident II D5 missile since 1989.

The Navy launched the missile as part of a Demonstration and Shakedown Operation (DASO) to certify USS Alaska for deployment, following a shipyard overhaul period. For the test, a missile was converted into a test configuration using a test missile kit produced by Lockheed Martin that contained range safety devices and flight telemetry instrumentation.

Dec 14/09: Chips. General Dynamics Advanced Information Systems received a contract from Charles Stark Draper Laboratory to produce integrated circuits for the Trident II D5 submarine-launched ballistic missile program. This is a 3-year contract with a total potential value of $110 million including the pre-priced options.

The contract is part of the Trident II D5 LE program. General Dynamics is also providing circuit card assemblies for the Trident II D5 missile and guidance systems. The principle subcontractor to General Dynamics for the wafer foundry services is Honeywell International and work will be performed at its Plymouth, MN facility.

Dec 8/09: Lockheed Martin Space Systems in Sunnyvale, CA received a not-to-exceed $851 million cost-plus-incentive-fee/ cost-plus-fixed-fee contract to provide support for production of Trident II D-5 ballistic missiles as well as maintenance of deployed D-5 and C-4 missiles.

Under the contract, Lockheed Martin is providing D5 missile hardware production support and reentry system hardware, as well as operations and maintenance to support the readiness and reliability of missile systems deployed aboard the US Navy’s Trident II Ohio-class SSBNs. The contract also continues the D5 LE effort, which updates electronic components to support the extended service life of the Ohio-class SSBNs

Mature D5 production efforts will transition to a fixed-price-incentive contract in fiscal year 2011. Lockheed Martin expects to complete the work by Dec 30/13. Contract funds in the amount of $284,965 will expire at the end the current fiscal year. The contract was not competitively procured (N00030-10-C-0100).

Missile Production

Dec 4/09: Support. Charles Stark Draper Laboratory in Cambridge, MA received a $133.3 million modification (#P00003) under a previously awarded cost-plus-incentive-fee, cost-plus-fixed-fee contract (N00030-09-C-0008) for the Trident II D5 guidance system tactical engineering support and guidance applications program. Specific tasks include:

• provide tactical engineering support;
  
• provide Mk6 LE field support services;
  
• develop a strategic guidance application program;
  
• develop a GPS receiver design approach;
  
• provide support for the Extended Navy Test Bed (ENTB) and ENTB derivative reentry body experiments (ENTB [PDF] is a special Trident reentry body used to test performance of the missile’s reentry vehicle guidance using GPS); and
  
• assess maintaining the accuracy of the existing reentry systems.

The contract modification increases the total contract value to $290.7 million. Work will be performed in Cambridge, MA (73%); Pittsfield, MA (21%); El Segundo, CA (4%); Clearwater, FL (1%); and Andover, MA (1%). Work is expected to be complete by Sept 30/11.

Dec 4/09: D5 LE. Charles Stark Draper Laboratory in Cambridge, MA received a $109.7 million modification under a previously awarded cost-plus-incentive-fee, cost-plus-fixed-fee contract for guidance system repair and delivery of Trident II D5 Mk6 LE pre-production units, to support 3 planned proofing test missile flights.

The modification increases the total contract value to $547.6 million. Work will be performed in Cambridge, MA (82%) and Pittsfield, MA (18%) and is expected to be complete by Sept 30/12 (N00030-08-C-0010, PO 0009).

Nov 24/09: Support. Lockheed Martin Maritime Systems & Sensors in Mitchel Field, NY received a $62.9 million cost-plus incentive fee/ cost-plus-fixed-fee contract to provide navigation subsystem engineering support services to the US and UK fleet of Trident II D5 ballistic missiles. The contract contains options, which if exercised, would bring its cumulative value to $141.4 million.

Under the contract, Lockheed Martin will provide fleet support, strategic weapon system shipboard integration support and trainer, trainer systems support, sea-based strategic deterrent support, engineering refueling overhaul support, and navigation subsystem studies.

Lockheed Martin will perform the work in Mitchel Field, NY (95.4%); Oldsmar, FL (3.6%); Baltimore, MD (0.4%); Moorestown, NJ (0.4%); Eagan, MN (0.1%); and Manassas, VA (0.1%). The company expects to complete the work by Dec 31/11, or Sept 30/13 if all options are exercised. Contract funds in the amount of $30.1 million will expire at the end of the current fiscal year (N00030-10-C-0002).

Nov 16/09: Support. L3 Interstate Electronics Corp. in Anaheim, CA received a $39.2 million cost-plus-incentive-fee, cost-plus-fixed-fee contract to provide data acquisition, processing, and analysis for Trident missile flight test missions of the United States and United Kingdom. This contract contains options, which if exercised, would bring the contract value to $49.4 million.

L3 Interstate Electronics will perform the Trident flight test data work in Anaheim, CA (50%); Austin, TX (20%); Ascension Island (10%); Cape Canaveral, FL (10%); and St. Croix, US Virgin Islands (10%), and expects to complete it by Sept 30/10, or September 2012 if all options are exercised (N00030-10-C-0009).

Oct 23/09: Lockheed Martin Space Systems Co in Sunnyvale, CA receives an $853.3 cost-plus-incentive-fee/ cost-plus-fixed-fee (CPIF/CPFF) unfinalized contract to support Trident II D5 missile production, and deployed systems (C4 and D5). The contract type will be CPIF/CPFF for this contract only, and mature production efforts will transition to fixed-price-incentive in FY 2011.

The place of performance is to be determined, pending finalization of the award. Work is expected to be complete in Dec 30/13. Only $284,965 will expire at the end the current fiscal year, on Sept 30/09. The contract was not competitively procured (N00030-10-C-0100).

Missile production

FY 2009

Incremental changes: Missile orders; SHIPALT kits; Mk6 LE work; Support contracts.

Sept 30/09: Support. Boeing in Anaheim, CA received a $28.8 million contract modification, exercising an option to provide the following efforts for the TRIDENT II (D5) navigation subsystem:

• Engineering support services, and problem investigations for U.S. and U.K.-owned electrostatically supported gyro navigator (ESGN) navigation inertial equipment;
  
• Modification, refurbishment, and repair of US and UK ESGN instruments and components;
  
• TRIDENT II (D5) shipyard overhaul field engineering;
  
• US Fleet documentation, surveillance program, and training;
  
• US/UK stable platform housing refurbishment.

These options increase the total contract value to $62.6 million. Work will be performed in Anaheim, CA (84%) and Heath, OH (16%), and is expected to be complete by Dec 31/12. $1.3 million will expire at the end of the current fiscal year, which is more or less immediately (N00030-09-C-0002).

Aug 31/09: Support. General Dynamics Electric Boat Corp. in Groton, CT received a $30.9 million contract modification to add new procurement CLIN(contract line item numbers). The new tasks will include:

• Produce and install the NAVSEA ship alteration kits, for the SSP shipboard integration Increment 1, MK98 MOD 6/7 fire control system
  
• Conduct investigations and resolution of problems associated with TRIDENT I and TRIDENT II submarine launched ballistic missile programs
  
• Provide strategic weapon systems technical engineering support.

This is follow-on work from the base contract, vid. June 20/08 entry. Work will be performed in Groton, CT (68%); Silverdale, WA (14%); Kings Bay, GA (14%); and North Kingstown, RI (4%), and is expected to be complete Aug 4/10. $1.25 million will expire at the end of the current fiscal year, on Sept 30/09 (N00030-08-C-0031).

April 9/09: Support. Boeing in Anaheim, CA received a $33.9 million cost plus incentive fee, cost plus fixed fee contract to provide the following efforts for the TRIDENT II (D5) Navigation Subsystem:

• Engineering support services, and problem investigations for U.S. and U.K.-owned electrostatically supported gyro navigator (ESGN) navigation inertial equipment
  
• Modification, refurbishment, and repair of US and UK ESGN instruments and components
  
• TRIDENT II (D5) shipyard overhaul field engineering
  
• US Fleet documentation, surveillance program, and training
  
• US/UK stable platform housing refurbishment.

Work will be performed in Anaheim, CA (90%) and Heath, OH (10%), and is expected to be complete in June 2012. $25.4 million will expire at the end of the current fiscal year, on Sept 30/09. The contract was not competitively procured (N00030-09-C-0002).

March 31/09: D5 LE. Lockheed Martin Space Systems Co in Sunnyvale, CA receives a $63.6 million modification under a cost plus incentive fee contract for the Trident II D5 Life Extension (LE) SPALT(SPecial Products ALTerations) Production.

Work will be performed in CA (46.20%); MA (18.57%); MN (15.01%); NM (6.25%); GA (6.11%); FL (5.29%); PA (0.77%); SC (0.53%) and other locations (1.40%), and is expected to be complete by Sept 30/14. This contract was not competitively procured (N00030-07-C-0100, P00027).

March 30/09: UK Support. Lockheed Martin Space Systems Co. in Sunnyvale, CA receives a $21.3 million cost plus fixed fee contract to provide for technical services in support of Britain’s TRIDENT Strategic Weapons System.

Work will be performed in Sunnyvale, CA (75%); Cocoa Beach, FL (10%); Hudson, NH (2%); St. Mary’s GA (1%); Groton, CT (1%); Bremerton, WA (.5%); other US locations (.5%); and other UK and Italian locations (10%), and is expected to be complete by March 31/10. This contract was not competitively procured (N00030-09-C-0018).

Jan 30/09: D5 LE. The Charles Stark Draper Laboratory, Inc. in Cambridge, MA received a $146.2 million cost plus incentive fee contract for a Trident II D5 MK6 LE Guidance System.

Work will be performed in Clearwater, FL (35%); Plymouth, MN (27%); Bloomington, MN (16%), Cambridge, MA (12%); and Pittsfield, MA (10%), and is expected to be complete by December 2011. This contract was not competitively procured (N00030-09-C-0011).

Dec 5/08: Support. Charles Stark Draper Laboratories in Cambridge, MA received a $157.3 million cost plus incentive fee, cost plus fixed fee contract for services supporting the TRIDENT II (D-5) weapons system. Services will include:

• Specialized tactical engineering services, logistics services, fleet support services, and guidance repair services to test, repair and maintain guidance subsystems, test equipment, and related support equipment;
  
• Research in the application of technologies to support TRIDENT II (D-5) Guidance and Reentry Systems;
  
• Failure verification, test, repair and re-certification of Inertial Measurement Units P/N 5807000, Electronic Assemblies P/N 6285900, electronic modules and MK 6 Guidance System related components;
  
• Design, analysis and test of service life related upgrades of Inertial Measurement Units P/N 5807000, Electronic Assemblies P/N 6285900, electronic modules and MK 6 Guidance System related components.

Work will be performed in Cambridge, MA (72%); Pittsfield, MA (21%); Clearwater, FL (3%); El Segundo, CA (3%); and Andover, MA (1%), and is expected to be complete Sept 30/09. $91.2 million will expire at the end of the current fiscal year, on Sept 30/09. This contract was not competitively procured (N00030-09-C-0008).

Dec 1/09: Lockheed Martin Space Systems Co. in Sunnyvale, CA receives a $720.1 million modification to a cost-plus-incentive-fee, cost-plus-fixed-fee contract to provide TRIDENT II (D5) and TRIDENT I (C4) missile subsystems. Specific tasks may include:

• Missile body, re-entry body, D5 instrumentation systems and support equipment production (D5 only);
  
• D5 Production Continuity Hardware (D5 only);
  
• Components and requalification activities in support of D5 life extension requirements;
  
• Critical components in support of D5 life extension requirements;
  
• Field Processing;
  
• Engineering and operational support services;
  
• Training material development and maintenance;
  
• Trainer design and operational support;
  
• Spares and integrated logistics support;
  
• Flight Test Analysis and Range Support;
  
• Safety Assurance including Nuclear Weapon Security (NWS);
  
• Missile and support equipment repair;
  
• Flight Test Planning and Flight Test Data Acquisition and Processing (D5 only);
  
• Development, production and installation of SPALTs/PADs/Sers [Special Projects Alterations, POMF (POLARIS Missile Facility) Alteration Documents, and Support Equipment Requirements];
  
• Develop and produce an Alteration Release Assembly;
  
• Develop an Enhanced Telemetry System;
  
• Technical services in support of the C4/D5 Ballast System and Test Instrumentation Mast program;
  
• Technical services in support of all requirements associated with TRIDENT I (C4) related to asset dispositions and disposal.

In addition to TRIDENT II (D5), and TRIDENT I (C4) missile subsystem requirements, there is also a requirement to:

• Provide storage and maintenance for the Tomahawk Land Attack Missile, Nuclear (TLAM-N) at the Strategic Weapons Facilities;
  
• Perform processing and provide technical services in support of the SSGN Attack Weapon System (AWS) at SWFLANT;
  
• Provide TRIDENT SWS(Strategic Weapons Systems) Missile Training;
  
• Develop technology applicable to global strike objectives that integrates with existing TRIDENT missile and/or the platform, and the missile processing and TRIDENT operations infrastructure;
  
• Provide Options for Flight Test Data Acquisition and Analysis for the Air Force and the Missile Defense Agency.

Work will be performed in California (42%); Georgia (11%); Utah (16%); Florida (9%); Washington (8%); Virginia (3%); Tennessee (2%); New Jersey (1%); Massachusetts (1%); Illinois (1%); Maryland (1%); other (5%), and is expected to be complete in September 2012. $285.5 million will expire at the end of the current fiscal year, on Sept 30/09 (N00030-08-C-0100, PZ0001). See also March 26/08 entry.

Missile & components production, D5 LE, Services

Nov 19/08: Fire control. General Dynamics Advanced Information Systems in Pittsfield, MA received a $52.3 million contract modification for FY09-FY11 US and UK TRIDENT II (D5) fire control system (FCS) work, and US SSGN attack weapon control system (AWCS) support. These efforts include:

• US/UK weapon control systems (WCS) and weapon control training system (WCTS) operational support
  
• US/UK WCS operational support
  
• US/UK WCS and navigation system repair and return (R&R)
  
• FCS software 344 (Mk 6 life extension) development
  
• US/UK Mk 98 Mod 8/9 FCS development
  
• Engineered refueling overhaul service
  
• Mk 98 Mod 4, 5, 6 and 7 FCS updates
  
• AWCS training unique
  
• Strategic weapon system training unique.

Work will be performed in Pittsfield, MA, and is expected to be complete on April 1/11. $25.8 million will expire at the end of current fiscal year, on Sept 30/09 (N00030-08-C-0041, P00013)

Nov 12/08: D5 LE. The Charles Stark Draper Laboratory receives a $117.4 million contract modification for Trident II (D5) guidance system repair, guidance system parts, and MK6 LE work. This modification increases the total contract value to $298.3 million.

Work will be performed in the following locations: Cambridge, MA (43%), Pittsfield, MA (38%), El Segundo, CA (12%), Clearwater, FL (5%), and Andover, MA (2%) and is expected to be completed by 30 Sept. 2011. This contract was not competitively procured (N00030-08-C-0010, P00006).

FY 2007 – 2008

Missile orders; SHIPALT kits; Mk6 LE work; Support contracts.

Sept 17/08: Support. Lockheed Martin Maritime Systems & Sensors in Mitchel Field, NY receives a $35 million modification to a previously awarded cost plus incentive fee, cost plus fixed fee contract (N00030-08-C-0002), exercising options to provide U.S., and U.K. Trident II (D5) Navigation Subsystem Engineering Support services, and Engineering Refueling Overhaul Support. The options increase the contract value to $112.1 million.

Work will be performed in Mitchel Field, NY, and work is expected to be complete in September 2011.

July 18/08: Support. Aero Thermo Technology Inc. in Huntsville, AL receives a $5.9 million cost-plus-fixed-fee contract to provide technical, analytical, and program research and development services to support the TRIDENT I and TRIDENT II Submarine Launched Ballistic Missile (SLBM) program, and the Intercontinental Ballistic Missile guidance system requirement. This contract contains options, which if exercised, will bring the total contract value to $32.5 million.

Work will be performed in Huntsville, AL (59%); Nashville, TN (20%); Honolulu, Hawaii (18%); and Colorado Springs, CO (3%), and is expected to be complete in December 2008 (December 2012 with options). This contract was not competitively procured (N00030-08-C-0030).

June 20/08: Support. General Dynamics Electric Boat Corp. in Groton, CT received a $13.7 million contract modification to:

• Produce and install the Naval Sea Systems Command Ship Alteration (SHIPALT) kits for the Strategic Systems Programs Shipboard Integration (SSI) Increment 1, MK98 MOD 6/7 Fire Control System;
  
• Conduct investigations and resolution of problems associated with TRIDENT I and TRIDENT II Submarine Launched Ballistic Missile programs, Ohio Class Submersible Ship Guided Nuclear requirements, Attack Weapon System (AWS) Trainer requirements and Advanced Weapons Systems Development requirements;
  
• Provide Strategic Weapons Systems (SWS) technical engineering support.

Work will be performed in Groton, CT (68%); Silverdale, WA (14%); Kings Bay, GA (14%); North Kingstown, RI (4%), and is expected to be complete in May 2012. $1.4 million will expire at the end of the current fiscal year, on Sept 30/08. This contract was a sole source award (N00030-08-C-0031).

March 26/08: initial FY 2008. Lockheed Martin Space Systems Co. in Sunnyvale, CA received a $19.3 million unpriced letter contract to provide Long Lead Material (LLM) required for FY 2009 follow-on production of the TRIDENT II (D5) Missile System. This unpriced letter contract will be definitized on/about Oct 1/08 as a cost reimbursable, multiple incentive contract with incentives on cost and performance.

Work will be performed in locations yet to be determined, and is expected to be complete in September 2012. The contract was not competitively procured (N00030-08-C-0100).

March 21/08: UK Support. Lockheed Martin Space Systems Co. in Sunnyvale, CA receives a $15.5 million cost plus fixed fee contract to provide for technical services in support of Britain’s TRIDENT Strategic Weapons System.

Work will be performed in Sunnyvale, CA (74.47%); Cape Canaveral, FL (17.37%); St. Mary’s, GA (1.35%); Silverdale, WA (0.73%); Jenkintown, PA (0.34%); Indianapolis, IN (0.05%); Broomfield, CO (0.03%) ; Herndon, VA (.02%); other U.S. locations to be determined (0.32%); and locations to be determined in the United Kingdom and Italy (5.32%), and is expected to be completed March 2009. The contract was not competitively procured (N00030-08-C-0019).

March 4/08: Support. Lockheed Martin Maritime Systems and Sensors in Mitchel Field, NY received a $21.3 million modification under a previously awarded cost-plus-incentive fee, cost-plus-fixed-fee contract to exercise options to provide U.S. TRIDENT II (D5) navigation subsystem engineering support services requirements. Specific efforts include U.S. Strategic Weapon System shipboard integration support and U.S. trainer shipboard integration support. The options increase the contract value to $80.1 million.

Work will be performed in Mitchel Field, NY, and is expected to be complete in April 2010 (N00030-08-C-0002).

Nov 21/07: Support. Northrop Grumman Space Mission Systems Corp. in Van Nuys, CA received an $8.3 million cost-plus-incentive-fee, cost-plus-fixed-fee contract to provide for U.S. and U.K. TRIDENT Flight test data collection, planning, support, and refresh of the radars used to collect the data.

Work will be performed in Los Angeles, CA (37%); Arlington, VA (7%); Van Nuys, CA (2%); Huntington Beach, CA (4%); Pleasant Hill, CA (2%), and Huntsville, AL (1%), and is expected to be complete in September 2008. $4.4 million will expire at the end of the current fiscal year. This contract was a sole source acquisition (N00030-08-C-0005).

Nov 19/07: Support. General Dynamics Advanced Information Systems in Pittsfield, MA is being awarded a $91.3 million Strategic Systems Programs contract for FY 2008 through FY 2009 work. The contract is a cost plus incentive fee contract (incentives on cost, performance, and schedule) awarded based on a sole source acquisition. The funding profile is as follows:

• $2,978,000 FY2007 UK (3.3%)
  
• $9,973,000 FY2008 UK (10.9%)
  
• $35,613,891 FY2007 OPN (39%)
  
• $2,327,403 FY2008 SCN (2.5%)
  
• $27,865,698 FY2008 O&M, USN (30.5%)
  
• $9,096,830 FY2008 OPN (10.0%)
  
• $3,467,739 FY2008 WPN (3.8%).
  
• $27,865,698 of FY2008 O&M, USN funding which would expire at the end of the current fiscal year on Sept 30/08.

Specific work will include: U.S. and U.K. operational support, repair, installation, and checkout; Mod 6/7 development and production; Mod 8/9 development; Engineered Refueling Overhaul Support; Training Unique Development; AWCS; Auxiliary Systems Tech Refresh; AWCS Mod 0 updates; Conventional TRIDENT Modification development; and Mk 6 Life Extension development; from Oct 1/07 through April 2/11. Work will be performed in Pittsfield, MA (N00030-08-C-0041).

Oct 16/07: Support. Lockheed Martin Maritime Systems and Sensors in Mitchel Field, NY received a $58.7 million cost-plus-incentive-fee, cost-plus-fixed-fee contract to provide FY 2008 U.S. and U.K. TRIDENT II (D5) Navigation Subsystem Engineering Support Services requirements. Specific efforts include U.S. and U.K. Fleet support, Strategic Weapon System Shipboard Integration support, modifications to Trident II (D5) backfit navigation computer software and hardware, U.S. and U.K. trainer systems support, engineering refueling overhaul support.

Work will be performed in Mitchel Field, NY, and is expected to be complete in April 2011. $30.7 million will expire at the end of the current fiscal year, on Sept 30/08. This contract was awarded based on a sole source acquisition (N00030-08-C-0002).

Sept 28/07: Support. L3/Interstate Electronics Corp. in Anaheim, CA received a $59.6 million cost- plus-incentive-fee, cost-plus-fixed-fee contract for specialized technical engineering services to operate, maintain, and repair the TRIDENT II D5 Test Instrumentation subsystems, spares, and related support equipment in support of America’s TRIDENT II (D5) missiles. It includes operation and maintenance of the Launch Area Support Ship (LASS) Flight Test Support System, the M250 Test Missile Radio Frequency set, and M240R Data Recording System (DRS). The contractor will also monitor and provide recommendations/updates to the formal training materials, documentation, and hardware/software utilized in the Strategic Weapons System (SWS) training program.

Work will be performed in Anaheim, CA, and is expected to be complete in May 2009. This contract was awarded based on a sole source acquisition (N00030-08-C-0006).

Sept 10/07: Support. Boeing in Anaheim, CA received a $21.4 million contract modification, exercising options for TRIDENT II (D5) Navigation Subsystem work. Specific efforts include:

• Engineering support services and problem investigations for U.S. and U.K. owned Electrostatically Supported Gyro Navigator (ESGN) navigation inertial equipment;
  
• Modification, refurbishment, and repair of U.S. and U.K. ESGN instruments and components
  
• TRIDENT II (D5) shipyard overhaul field engineering
  
• U.S. Fleet Documentation, Surveillance Program, and training.

Work will be performed in Anaheim, CA, and is expected to be complete in September 2010. This contract was awarded based on a sole source acquisition (N00030-07-C-0002).

March 12/07: UK Support. Lockheed Martin Space Systems Co. in Sunnyvale, CA receives a $14.2 million cost plus fixed fee contract to provide for technical services in support of Britain’s TRIDENT Strategic Weapons System.

Work will be performed in Sunnyvale, CA (69.94%); Cape Canaveral, FL (18.64%); Helensburgh, Scotland, UK (8.6%); St. Mary’s, GA (1.05%); Silverdale, WA (0.67%); Herndon, VA (0.22%); Indianopolis, IN (0.21%) and other yet to be determined sites (0.67%), and is expected to be complete in March 2008. This contract was procured on a sole source basis (N00030-07-C-0028).

March 28/07: Long-lead. Lockheed Martin Space Systems Co. in Sunnyvale, CA won a $20.5 million unpriced letter contract to procure Trident II D5 long lead time materials. Work will be performed at various locations and is yet to be determined for this undefinitized effort, and is expected to be completed by September 2011. This contract is a sole source procurement (N00030-07-C-0100).

Jan 9/07: FY 2007. Lockheed Martin Space Systems Co’s Space and Strategic Missiles division in Sunnyvale, CA receives a $654.9 million cost-plus-incentive-fee/ cost-plus-fixed-fee contract modification for Trident II D5 and Trident I C4 nuclear sea-launched ballistic missiles (N00030-06-C-0100, PZ0001).

The Trident C-4 has been in service since 1979, but the D-5 Trident II is more recent. First deployed in 1990 and scheduled for operational deployment until 2042, 12 of the USA’s 14 SSBNs have been outfitted with Trident II D-5 missiles, and the other 2 will be backfitted as opportunity permits.

Work will be performed in Sunnyvale, Irvine, Torrance and Santa Ana, CA (33.42%); St. Mary’s, GA (15.76%); Brigham City, UT (15.76%); Cape Canaveral, FL (11.89%); Silverdale and Nepoulsbo, WA (10.5%); Gainsville, VA (2.34%); Kingsport, TN (1.65%); and miscellaneous sites throughout the U.S. (9.3%). Contract funds in the amount of $247.6 million will expire at the end of the current fiscal year, and work is expected to be complete by September 2010.

Missile production

Nov 27/06: D5 LE. The Charles Stark Draper Laboratory in Cambridge, MA received a $195.75 million contract for tactical engineering support re: the Mk 6 guidance system used on American and British Trident II D-5 nuclear missiles. Contract funds in the amount of $76.6 million will expire at the end of current fiscal year, and this contract contains options which would bring its cumulative value to $201.9 million if exercised.

Work will include repair and recertification of Mk 6 guidance systems, including pendulous integrating gyroscopic accelerometers, inertial measurement units, electronic assemblies, inertial measurement units electronics, repair parts, test equipment maintenance, and related hardware; deliver a product and process improvement study to investigate approaches to reduce life-cycle cost and improve performance of the Fleet Ballistic Missile Guidance System program; and employ its personnel and facilities in the conduct of various important technical studies including the Guidance Application Program and the Radiation Hardened Application Program. It will be performed in Cambridge, MA (64%); Pittsfield, MA (23%); Andover, MA (5%); El Segundo, CA (3%); Clearwater, FL (3%); and Woodland Hills, CA (2%), and is expected to be complete September 2007 (N00030-07-C-0001).

FY 2005 – 2006

Missile order; Rocket motors; R&D and work on improved guidance; support contracts.

June 1/06: UK support. Lockheed Martin Space Systems Company in Sunnyvale, CA received a $12.2 million cost-plus-fixed-fee contract for technical services that support Britain’s TRIDENT strategic weapons systems. Work will be performed in Sunnyvale, CA, and is expected to be complete in March 2007. This contract was not competitively procured (N00030-06-C-0038).

April 6/06: Rocket motors. Alliant Techsystems received a $76 million contract from Lockheed Martin to produce solid propulsion systems for all three stages of the US Navy’s Trident II D5 missile. Under the terms of the contract, ATK will continue to supply Trident solid propulsion systems to Lockheed Martin Space Systems Company in Sunnyvale, CA through 2010.

April 5/06: Support. Charles Stark Draper Laboratory in Cambridge, MA received a $26.9 million cost-plus-incentive-fee contract to provide repair and recertification of MK-6 guidance systems, including pendulous integrating gyroscopic accelerometers, inertial measurement units, electronic assemblies, inertial measurement units electronics, repair parts, test equipment maintenance, and related hardware. Work will be performed in Cambridge, MA and is expected to be complete September 2006 (N000-30-06-C-0002).

Dec 22/05: FY 2006. Lockheed Martin Space Systems in Sunnyvale, CA received an $869 million cost-plus-incentive-fee, cost-plus-fixed-fee, cost-plus-award-fee contract from the US Navy to provide funding for fiscal 2006 Trident II D5 Missile Production and Deployed System Support.

Work on this FY 2006 Trident II D5 production & sustainment contract will be performed in Sunnyvale, CA (39%); Magna, UT (12%); Kings Bay, GA (11%); Cocoa Beach, FL (12%); Bangor, WA (8%); Gainesville, VA (3%); Kings Port, TN (1%), Rockville, MD (1%), Lancaster, PA (2%); and other locations (11%), and is expected to be complete by September 2009 (N00030-05-C-0100, Mod. No. PZ0001).

Missile production

Dec 12/05: D5 LE. The Charles Stark Draper Laboratory (CSDL) in Cambridge, MA received a $101.1 million modification to previously awarded cost-plus-incentive-fee contract (N00030-05-C-0007) to develop all the system software and algorithms, system sensors, gyroscopes, and accelerometers for the MK6 LE system. CSDL will also build all the system test beds and integrate all the subsystems produced by the subcontractors (General Dynamics, Raytheon, Honeywell, Dynamics Research Corp.) into the final MK6 LE proof of concept model.

Nov 16/05: Support. BAE Systems Applied Technologies in Rockville, MD is being awarded a $62.5 million cost plus fixed fee and cost-plus incentive-fee-of-effort contract. This contract provides for System Integration Support for the Trident II D5 Fleet Ballistic Missile (FBM) Program in implementing interface control programs and performing special technical investigations such as the following:

• Modify and update system test procedures;
  
• Perform configuration management and alteration control via documentation, drawings and technical manuals;
  
• Provide logistics, engineering and material control support; and
  
• Provide maintenance support data system installation and support for the strategic weapon system, including materials.

The contract also contains option effort to plan for and participate in strategic weapon system testing during submarine overhaul, refit and backfit; and to provide

• Tomahawk Land Attack Missile-Nuclear (TLAM-N) support
  
• Advanced Systems’ Studies
  
• Strategic Weapon System Underwater Launch Technology Sustainment
  
• Trident II D5 Life Extension Systems Engineering, and
  
• Trident Submarine Operation and Employment Studies.

Work will be performed in Rockville, MD (78.58%), Kings Bay, GA (11.78%); Mechanicsburg, PA (2.83%); San Diego, CA (5.96%), and Bangor, WA (0.85%); and and is expected to be complete by September 2006. Contract funds in the amount of $44.6 million will expire at the end of the current fiscal year (N00030-06-C-0006).

Nov 16/05: Fire Control. General Dynamics Advanced Information Systems (GDAIS) in Pittsfield, MA received an $8.3 million cost-plus-incentive-fee contract to provide Trident II weapon control systems operational support and weapon control system repair and return. Work will be performed in Pittsfield, MA, and is expected to be complete by September 2006. Contract funds in the amount of $4 million will expire at the end of the current fiscal year (N00030-05-C-0051).

Nov 15/05: Support. The Charles Stark Draper Laboratory (CSDL) in Cambridge, MA received $130.6 million cost-plus-incentive-fee, cost-plus-fixed-fee contract, elements of which will also be subcontracted out to various other firms. The contract encompasses the following efforts:

• Providing tactical engineering support (TES) for the US and UK Mk6 Guidance System
  
• Providing tactical engineering support (TES) for the Trident II D5’s Guidance System Test Equipment
  
• Providing tactical engineering support for investigation, evaluation, and development of Strategic Programs Alteration (SPALT) plans and/or special studies for the Mk6 Guidance System.

CSDL will subcontract to the following companies:

• Dynamics Research Corp. (DRC) in Andover MA to maintain and operate the centralized engineering database for the Mk6 guidance system, and perform various product improvement tasks related to the Mk6 guidance system test equipment;
  
• General Dynamics Advanced Information Systems (GDAIS) in Pittsfield MA, to provide field-engineering support at Strategic Weapons Facility Atlantic and Strategic Weapons Facility Pacific;
  
• Raytheon Company Electronics Systems Division in El Segundo, CA to provide test equipment maintenance and support, fleet support, stellar camera development, and electronic factory support;
  
• Honeywell International, Inc. in Clearwater, FL, to provide storage assessment testing on Trident guidance systems inertial instruments; and
  
• Litton Systems in Woodland Hills, CA, to provide for the development of the alternate pendulous integrating accelerometer.

CSDL’s work will be performed in Cambridge, MA, and work on this contract is expected to be complete in September 2006. Contract funds in the amount of $73.7 million will expire at the end of the current fiscal year (N000-30-06-C-0003).

Nov 14/05: Navigation. The Boeing Co. in Anaheim, CA received a $14.2 million cost-plus-incentive-fee letter contract to provide for Trident II Subsystem Fiber Optic Gyro Navigator Design Investigations and Test System Design. Work will be performed in Anaheim, CA and is expected to be complete by October 2007. The contract was not competitively procured (N00030-05-C-0063).

Sept 29/05: Fire Control. General Dynamics Advanced Information Systems in Pittsfield, MA received a $28.3 million cost-plus-incentive-fee contract to provide Trident II Mk98 MOD 6/7 Strategic Weapons Systems Development and Production. The Mk98 mod 6/7 is an updated fire control system for the SSBN 726 Ohio Class nuclear ballistic missile submarines and their Trident II nuclear missiles. Work will be performed in Pittsfield, MA and is expected to be complete by December 2009 (N00030-05-C-0051).

Additional Readings

Readers with corrections, comments, or information to contribute are encouraged to contact DID’s Founding Editor, Joe Katzman. We understand the industry – you will only be publicly recognized if you tell us that it’s OK to do so.

• DID (Dec 9/09) – Up to $851M to Lockheed Martin for Trident Ballistic Missile Support.

• DID (Dec 6/09) – $243M to Draper Laboratory for Trident II D5 Guidance System Support.

• DID (Nov 24/09) – Up to $141.4M to Lockheed Martin for Trident Navigation System Support.

• DID (Nov 16/09) – Up to $49.4M to L3 for Trident Missile Test Data Acquisition and Analysis.

• DID (Jan 11/09) – US Spending $654.9M to Maintain Trident SLBMs.

• DID (Nov 27/06) – $197.5M to Refurbish Mk6 SLBM Guidance Systems.

• DID (April 6/06) – Trident D-5 SLBM Maintenance: Rocket Motors, Guidance.

• DID (Dec 22/05) – $869M for USA’s FY06 Trident D-5 Nuclear SLBM Production and Support.

• DID (Dec 15/05) – $101.1M to Develop the MK6 LE – So, What’s That?

• DID (Nov 18/05) – $215.6M for Trident II Missile-Related Contracts.

• DID (Sep 29/05) – $28.3M for Trident II SLBM Fire Control System.

Americas

• Investors and traders looking to avoid/gain from the stock market turmoil caused by US President Donald Trump have a new best friend: an app that will generate trading alerts for shares based on comments made by the man on social media. Tweets sent by Trump in December, criticizing big ticket defense programs such the F-35 and the new Air Force One, sent stock prices of Lockheed Martin and Boeing tumbling, and the CEOs of the US’ biggest defense companies scrambling to find ways to trim the fat on program costs. Behind the creation, London-based FinTech firm Trading.co.uk said the Trump signal generator used artificial intelligence technology to differentiate between tweets or other messages that, for example, just mention Boeing and those liable to move markets. Happy Inauguration Day!

• Speaking of costs, the price of the F-35 looks set to take a tumble, as the US DoD and Lockheed Martin come close to an agreement on a new contract for the Joint Strike Fighter. While talks on the warplane’s tenth batch are still ongoing, sources close to discussions say the fighter will drop below its current $100 million per-plane price tag for the first time. Believed to be in the range of $9 billion, an official announcement on the 90-plane deal is expected to come at the end of the month.

Middle East North Africa

• The Israeli Air Force has received delivery of their first Arrow-3 missile defense battery. A joint-development effort by Boeing and Israel Aerospace Industries (IAI), the Arrow-3 interceptor will form the upper-tier layer of Israel’s multi-tiered Arrow Weapons System (AWS), and is designed to fly nearly twice as high at half the weight of the Arrow-2 interceptor, which covers the lower-tier segment of the network. Arrow-3 missiles will allow the IAF to shoot twice against a single ballistic target, assess for battle damage and, if needed, divert to other approaching threats, with the Arrow-2 operating as a back-up.

• Warplanes from Turkey and Russia have conducted their first joint air-strike. In what is a strange development for a NATO member to coordinate so closely with Russia, the raid comes just fourteen months after Ankara downed a Russian Su-24 for allegedly crossing into Turkish airspace. Focusing on the town of al-Bab in Aleppo province, the strike included four Russian Su-24s, four Su-25s and an Su-34, joined by four F-4s and four F-16s from Turkey. Al-Bab, located just 12 miles from the Turkish border, has been the focus of a five-month Turkish-backed Syrian rebel campaign aimed at pushing back both IS and Kurdish forces.

Europe

• Polish Defense Minister Antoni Macierewicz has said that his government is considering a 2017 splurge on new military hardware. Macierewicz name-dropped Lockheed Martin’s Sikorsky subsidiary, Leonardo, and somewhat surprisingly Airbus, as potential suppliers of 14 helicopters to the Polish army. While both Sikorsky and Leonardo have plants located in Poland, relations between Airbus and the ruling Law & Justice Party soured last year following the cancellation of a $3.2 billion deal to provide 50 H225M Caracals. The ministry has also proposed a plan to buy between 50-100 F-16s as well as three new submarines with contracts to be signed by either the end of the year or in early 2018.

• Thales will update the master radars for the Swiss Air Force in a deal worth $78.90 million. The five-year upgrade is part of a life extension project to keep the former’s FLORAKO system running until the 2030s. Thales said the project will involve development of a new radar signal and upgrading the radar’s data processing and antenna system.

Asia Pacific

• Indonesia’s government has approved a $2 billion plan to purchase five A400M transport aircraft from Airbus. News of the deal marks a significant leap in the country’s modernization plans and provisions included in the deal will allow Indonesian engineers to study and observe the assembly of various major aircraft components, including wings and fuselage shells, for the first two airframes in Seville, Spain. State-owned firm PT Dirgantara will then conduct the final fit-out of the last three airframes at its plant in Bandung.

• A Royal Thai Air Force plan to purchase Mil Mi-17V-5 helicopters has paved the way for the potential setting up a production and maintenance facility in the kingdom. The facility will help support the new helicopters as well as five models previously purchased by Bangkok; once established, the facility would look to provide maintenance support to other Mi-17V-5 operators in Southeast Asia. Once a strong US ally, relations between the two have gone south in recent years following a 2014 coup, resulting in a reorientation toward Russia for defense and industrial ties.

Today’s Video

Unveiling of the Arrow-3 to the IAF:

ThalesRaytheonSystems (TRS) received $120 million in contracts from the Swiss defense procurement agency, ARMASUISSE, to provide the Swiss Air Force with advanced Link-16 connectivity for their fighter aircraft.

The funding represents a continuation of work by TRS on the FLORAKO command and control program. Phase VII will add voice and data transmission over an encrypted link, nation-wide Link-16 coverage, allow aircraft to acquire Link-16 information before take-off, and incorporate multifunctional information distribution system (MIDS) technology. DID has covered the significance of MIDS and Link 16 technology before; in Switzerland, MIDS technology will be especially useful for overcoming the challenges of maintaining full situational awareness at all times, even when flying aircraft within the mountainous Swiss terrain. With respect to the FLORAKO program generally…

Link 16 Display

TRS’ fully distributed FLORAKO comprises master surveillance radars, a data and communication system, a new airspace management system and new air command and control centers.

FLORAKO went into operation on Feb. 2, 2004, after successfully completing final tests and operating in parallel with the previous Swiss air defense system. It’s replacing Switzerland’s older Hughes FLORIDA with a system whose main functions include:

• Joint civil-military airspace management
  
• Air surveillance with multi-sensor tracking (military and civil radars)
  
• Identification
  
• Sensor management
  
• Threat assessment
  
• Air mission Command and Control

Phase VII is slated for completion in late 2008. Work will be performed by ThalesRaytheonSystems employees in Fullerton and Massy, France. Swiss industry will also participate in the system’s deployment. Read corporate release.

Future upgrades to FLORAKO will integrate more real time data and to interface with more sensors and reconnaissance assets.

ThalesRaytheonSystems is an equally owned transatlantic joint venture between Raytheon Company and Thales Group, with offices in Massy Cedex, France and Fullerton, California, USA.

Update

January 20/17: Thales will update the master radars for the Swiss Air Force in a deal worth $78.90 million. The five-year upgrade is part of a life extension project to keep the former’s FLORAKO system running until the 2030s. Thales said the project will involve development of a new radar signal and upgrading the radar’s data processing and antenna system.

Arrow test concept
(click to view full)

In a dawning age of rogue states, ballistic missile defenses are steadily become a widely accepted necessity. Iran is widely believed to be developing nuclear capabilities, and Israeli concerns were heightened after Iranian President Mahmoud Ahmadinejad urged that Israel be “wiped off the map” (the fact that America was also placed in that category went largely uncovered).

Because missile defenses are so important, states like India and Israel have taken steps to ensure that they have the ability to build many of the key pieces. The Arrow project is a collaboration between Boeing and IAI to produce the missile interceptors that accompany the required radars, satellites, command and control systems.

NOTE: Article capped and coverage suspended in 2011.

The Arrow System

Arrow launch
(click to view full)

In general, the Israeli Arrow is a more advanced weapon than the Patriot and possesses far more range, undertaking high altitude interceptions and covering a wide area (est. 90km/ 54 mile range, maximum altitude 30 miles/ 50 km for Arrow 2) as a Theater Missile Defense (TMD) system. Unlike the USA’s THAAD, PAC-3, or SM-3 which all use “hit to kill” technology, Israel’s Arrow relies on a directed fragmentation warhead to destroy enemy missiles. It can work in conjunction with a number of systems, but its main Israeli partner is the Green Pine long-range, ground-based fire control radar. The system and its engagements are controlled by the mobile Citron Tree battle management center. Since the launchers are also mobile, and the radars are semi-mobile, the system is resistant to pre-emptive strikes if good discipline is maintained.

The exoatmospheric, 2-stage Arrow-3 will use pivoting optical sensors and its own upper-stage kick motor, instead of separate control rockets for final steering. The goal is a highly maneuverable missile that can reach more than double the height of existing Arrow-2 interceptors, using a lower-weight missile. This will also have the effect of extending the missile’s range.

In contrast, Israel’s Patriot PAC-2s are more of a local point defense system with a range of about 40km/ 24 miles. They were all Israel had during the 1991 Gulf War, but these days, Israel’s Patriot PAC-2 GEM+ missiles will only be launched if the Arrow missile fails, or the target is outside the Arrow’s protective umbrella. In that respect, the Arrow/Homa system will play a role similar to the longer-range naval SM-3 Standard missile that forms the high end of Japan’s planned ABM shield (and seems destined for Europe and other states in a land-based role), or the US Army’s THAAD.

Overall responsibility for Arrow lies with the U.S. Missile Defense Organization (MDA) in Washington, DC, and the Israel Ministry of Defense in Tel Aviv, Israel. The program is executed by the Israel Missile Defense Organization in Tel Aviv, and the US Army Program Executive Office for Air and Missile Defense’s Arrow Product Office in Huntsville, AL. Key contractors include:

• Israel Aircraft Industries (prime contractor, Arrow missile, Green Pine fire control radar)
  
• Tadiran Electronics in Holon, Israel (Citron Tree battle management center)
  
• Boeing (about 35% of the Arrow missile, manages many US subcontractors)
  
• Lockheed Martin Missiles & Fire Control in Orlando, FL (radar seeker)
  
• Raytheon in Santa Barbara, CA (Infrared seeker)
  
• Other American subcontractors include ATK in Iuka, MS and Clearfield, UT; Manes Machine, in Fort Collins, CO; Ceradyne Thermo-Materials, Inc., in Scottsdale, GA; and Sanmina SCI, in Huntsville, AL.
  
• Rafael Armament Development Authority, Haifa, Israel (Black Sparrow air-launched target; joint U.S./Israel effort).

EL/M-2080 “Green Pine”
(click to view larger)

Israel deployed the first battery of Arrow-1 missiles on March 14/2000, and has continued to upgrade the system. The summer of 2005 marked delivery of the first co-produced Boeing/IAI missiles. Israeli and US troops engaged in pre-training for the biennial Juniper Cobra exercise in 2007, and part of that process includes working out interoperability issues between the Patriot PAC-3 system (ad PAC-2 GEM+ that Israel deploys) and Arrow.

On July 29/04 Israel and the USA carried out joint experiment in the USA, in which the Arrow was launched against a real Scud missile. The experiment was a success, as the Arrow destroyed the Scud with a direct hit. In December 2005 the system was successfully deployed in a test against a replicated Shahab-3 missile. This feat was repeated on February 11/07.

Despite some international interest in the Arrow, the USA has blocked export initiatives so far. Although India purchased an Arrow-capable “Green Pine” radar from Elta in 2001, and has expressed interest in deploying its own battery of Arrow interceptor missiles, U.S. concerns regarding compliance with the Missile Technology Control Regime (MTCR, an international agreement limiting the proliferation of ballistic missile technology) have effectively halted such plans for the time being. This did not stop India from using the Green Pine technology in its own November 2006 anti-missile test, using a modified Prithvi short-range ballistic missile with an exo-atmospheric kill vehicle and a hit to kill warhead.

Contracts & Key Events, 2004-Present

Arrow-3 development
click to play video

The section is still being updated.

January 20/17: The Israeli Air Force has received delivery of their first Arrow-3 missile defense battery. A joint-development effort by Boeing and Israel Aerospace Industries (IAI), the Arrow-3 interceptor will form the upper-tier layer of Israel’s multi-tiered Arrow Weapons System (AWS), and is designed to fly nearly twice as high at half the weight of the Arrow-2 interceptor, which covers the lower-tier segment of the network. Arrow-3 missiles will allow the IAF to shoot twice against a single ballistic target, assess for battle damage and, if needed, divert to other approaching threats, with the Arrow-2 operating as a back-up.

June 16/15: Joint US-Israel missile programs may benefit from additional funding under a Defense Appropriations Bill, following a vote in the House. The programs covered by the increase in funds include the Iron Dome, Arrow, Arrow 3 and David’s Sling systems. The last of these will receive the most significant boost, with an additional $286.5 million allocation.

Feb 22/11: An Arrow System successfully intercepts a ballistic target missile during a flight test conducted at Pt. Mugu Sea Range, CA. This test is part of the Arrow System Improvement Program (ASIP) and was conducted jointly by the Israel Missile Defense Organization and the U.S. Missile Defense Agency.

The test represented a realistic scenario, and all the elements (Arrow, Green Pine radar, Citron Tree BMC) performed in their operational configurations, using new Block 4 software designed to improve their ability to discriminate targets. US MDA release | video || Defense News.

July 27/10: The House Appropriations Subcommittee on Defense votes to fund Israel’s missile defense programs at $422.7 million for 2011, nearly $96 million above the original White House funding request. This represents a doubling of aid for missile defense from 2010, in the wake of an emerging consensus that the CIA’s 2007 estimate of Iran’s nuclear weapons program was wrong, and underestimated Iranian progress.

On the other hand, the structure of that funding is less good for the Arrow program. While the HASD added $58 million to the administration’s original FY 2011 Arrow-3 request, that provisional $108.8 million is actually less than FY 2010 funding of $157.4 million ($60M request + $97.4M Congress added). Likewise, the complementary medium range RAFAEL/Raytheon David’s Sling/Magic Wand dropped from $134.7 million in FY 2010 to $84.7 million requested in 2011. The net increase comes from a one-time, $205 million grant for the procurement of 10 RAFAEL Iron Dome batteries for defense against short-range missiles. HASD Chair statement [ PDF] | HASD Table [PDF] | AllGov | Jerusalem Post | Israel’s Globes business news.

July 26/10: Israel and the United States sign a deal to develop and field the Arrow 3 system. It will be capable of tracking and shooting down ballistic missiles at a higher altitudes, including fully exoatmospheric threats. US MDA | China’s Xinhua.

March 22/10: Defense News reports that U.S. and Israeli government and industrial partners will press ahead with Arrow 3 work through good faith understandings, until formalized government-to-government accords catch up. The goal is to deploy the new missile by 2014.

Production of the Arrow-2 is winding down, and final deliveries are planned by the end of 2010. Government and industrial partners have apparently been working together on Arrow-3 for nearly 2 years, moving the program through at least 4 of the US Missile Defense Agency’s required technology “knowledge points, and validate critical subsystems. A first fly-out is planned for 2011.

Manufacturing
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April 7/09: The Israeli Ministry of Defense and the U.S. Missile Defense Agency conduct a successful test of the Arrow ballistic missile defense system. The operationally realistic test was conducted in Israel, using an ASIP interceptor co-produced by Boeing and Israel Aerospace Industries (IAI). The event marked the co-produced Arrow II’s 2nd intercept in 2 attempts, as well as its 3rd successful flight test. Boeing.

Jan 4/09: Israel’s Arutz Sheva news service reports that the Arrow missile defense system has been deployed near Ashkelon, in part because IAI has worked with American firms and developed an updated radar system named MC4. The new radar can also deal with smaller missiles, such as the Hamas government’s Kassam or Grad rockets being launched from Gaza. Using GPS and camera sensors, the MC4 system tracks the flight path, and within a minute of launch, it can determine both the launch site and projected landing site of the missile.

At the same time, pressure is building to add Northrop Grumman’s SkyGuard laser system to Israel’s defenses, a system whose technology is based on joint US-Israeli research:

“Supporters claim that the Skyguard laser based system is more suited to Israel’s needs than the rocket-based Rafael solution. Firstly, the laser can intercept short range missiles such as the Kassam rocket which hit their targets in less than 10 seconds. The rocket-based Rafael system can only hit medium-range rockets which reach their targets in more than 20 seconds. In addition, each laser round fired costs approximately $3,000. In contrast, defensive rockets for the Iron Dome system are estimated to cost over $100,000. Supporters also claim that the Skyguard system could be deployed in a short amount of time, whereas the completion of the Iron Dome rocket system is not foreseen in the near future.”

Sept 29/08: The USA has deployed an unspecified X-band radar system in Israel, manned by around 120 American personnel. Reports hint that the system may be similar to the radars deployed to Japan, or the AN/TPY-2 used as part of the THAAD system. The Guardian:

“One key feature of the system is that information from early-warning satellites – which greatly increases the radar’s ability to pinpoint launches – would remain in US hands. The satellite ground station would be in Europe and transmit data to Israel.

…The high-powered X-Band system, manufactured by Raytheon Company, would allow Israel’s Arrow II ballistic shield to engage an Iranian Shehab-3 missile about halfway through its 11-minute flight to Israel, six times sooner than Israel’s existing Green Pine radar can. The X-Band can track an object the size of a baseball from 2,900 miles away.”

Feb 14/08: IAI announces that The Israel Ministry of Defense (IMOD) / Missile Defense Organization (IMDO) has awarded a follow-on production contract to Israel Aerospace Industries (IAI)’s MLM Division for an undisclosed number of additional Arrow 2 Anti-Tactical Ballistic Missile (ATBM) system interceptors. The interceptors will be assembled in Israel at IAI’s MLM Division, the Arrow prime contractor, with major portions coming from Boeing IDS, the U.S. prime contractor in Huntsville, AL., ATK in Luka, MS., and various other subcontractors across the U.S.

Aug 23/07: The Jerusalem Post publishes “IDF modifying Arrow deployment in the North.” Key quote:

“Following this past summer’s war and the recognition that the next war will involve Syrian and Iranian missile barrages, the Air Defense Forces decided to adopt a “wide deployment” for its Arrow missile batteries.”

Aug 6/07: Jane’s Defence Weekly: “Israel is leaning towards upgrading its own anti-ballistic missile Arrow Weapon System (AWS) rather than acquiring the US Theatre High Altitude Area Defence (THAAD) system. While no formal decision has yet been taken, Jane’s has learned that officials from the Israel Ballistic Missile Defence Organisation (BMDO) have informed the US Missile Defense Agency (MDA) about potential complications with integrating THAAD into the country’s missile-defence alignment.”

March 26/07: An improved Arrow II missile, with modifications to its hardware and electronics under the Arrow System Improvement Program, is successfully test-fired this afternoon at Palmahim Air Force Base. The interceptor performed successfully according to design specifications, meeting all expectations and objectives. This is the 1st successful test of the improved configuration, and the 2nd test overall of a co-produced interceptor. Testing is managed by the Israeli Missile Defense Organization, in close cooperation with the U.S. Missile Defense Agency.

Test objectives were to collect flight engineering data for future test events, and to test the capabilities of the improved Arrow interceptor. This test marks the U.S./Israeli Arrow II program’s 14th success in 16 attempts. US MDA [PDF].

Feb 12/07: A successful ballistic missile intercept test by the Arrow missile defense system, conducted at night over the Mediterranean Sea. It’s the 1st test of a co-produced Arrow intercept missile fired from an improved launcher, using 2 Arrow batteries separated from each other. The target, called “Black Sparrow,” was launched from an F-15 fighter aircraft at which point the Fire Control Radar acquired the target and notified the Battle Management Center. A defense plan was issued and a mission command was sent to the Launch Control Center to fire the interceptor missile. This test marks the U.S./Israeli Arrow II program’s 13th success in 15 attempts. US MDA [PDF].

Spring 2005: The 1st co-produced Arrow 2 interceptor is delivered by IAI to the MoD. Source [PDF].

Feb 2/05: Israel Defense Forces carry out a successful test of the IAI/Boeing Arrow anti-missile system at a secret location in the center of the country. The Jerusalem Post reports that “an F-15 fighter jet flying over the Mediterranean dropped a Black Sparrow test missile specially designed to simulate an incoming Iranian Shihab 3 missile headed toward the Israeli shore.” The successful interception occurred at a higher altitude than previous efforts, and tested recent improvements made to the Arrow 2 system.

Israeli Air Force Patriot missile batteries also participated passively in the test, following the incoming missile with their radars. The Times of India notes that this was the 14th test of the system, which has included joint tests in the USA and advanced tests simulating advanced separating warheads. As evidenced by the Patriot batteries’ participation in this latest test, Israel is working to integrate all of its key assets and connections to US data into one national system, rather than relying on fragmented local control. Jerusalem Post | copy at United Jerusalem.

Pt. Mugu launch
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Aug 26/04: US Missile Defense Agency [PDF]:

“The Arrow anti-ballistic missile system was used today in a joint Israel/United States test exercise as part of the ongoing Arrow System Improvement Program (ASIP). The test was the second in a series conducted at the Point Mugu Sea Range in California. It was the thirteenth Arrow intercept test and the eighth test of the complete weapon system. The Arrow interceptor was launched toward the target but no intercept was achieved. Many of the test objectives were successfully completed, and the test data is being analyzed by test engineers to determine why an intercept did not occur.”

July 29/04: A modified Arrow System Improvement Program anti-ballistic missile successfully intercepts and destroys a ballistic missile target today, west of San Nicolas Island on the Pt. Mugu Sea Range in California. Point Mugu was used, in order to offer a realistic scenario that could not have been tested in Israel due to test-field safety restrictions.

The objective of the test was to demonstrate the Arrow system’s improved performance against a target that represents a threat to Israel. This was the 12th Arrow intercept test, and the 7th test of the complete Arrow system. US MDA [PDF]

April 1/04: Boeing announces a $78 million contract from Israel Aircraft Industries (IAI) to produce Arrow II interceptor components. The contract, effective immediately, runs through 2006 with options for additional production until Q2 2008. The total contract value could exceed $225 million if all options are exercised.

Boeing and IAI signed a teaming agreement in 2002 to co-produce the interceptor for the Arrow weapon system. The firm is responsible for production of the electronics section, the radome, motorcases for the booster and sustainer, and the canister that holds the interceptor in the missile launcher. Boeing production and program management will be conducted in Huntsville, AL. IAI, the prime contractor of the Arrow system, is responsible for system integration and final interceptor assembly in Israel.

Boeing will manage several major subcontracts to support the Arrow interceptor production including Alliant-Techsystems in Iuka, MS and Clearfield, UT; Manes Machine, in Fort Collins, CO; Ceradyne Thermo-Materials, Inc., in Scottsdale, GA; and Sanmina SCI, in Huntsville, AL.

Sept 14/2000: The Israel Ministry of Defense, in cooperation with the U.S. Ballistic Missile Defense Organization and the U.S. Army, conduct the 2nd successful intercept of a target ballistic missile by the Arrow Weapon System (AWS) in Israel. This was the 8th overall Arrow-2 flight test, but the 1st intercept for the against a new air-launched, in-bound target called the Black Sparrow.

The Arrow interceptor took off and flew in a nominal trajectory, acquired the Black Sparrow target, then locked on and homed on the designated threat. The warhead was fused at the proper range and the Arrow interceptor destroyed the target. The Green Pine fire control radar and Citron Tree battle management center participated fully in the test, performing battle planning, launch operations, and up link/down link message applications, as well as post intercept verifications. Both assets worked according to plan and fulfilled all test objectives. Analysis of all data is underway to evaluate and confirm results. US MDA [PDF]

Additional Readings & Sources

• Israeli MoD – Arrow Weapon System site.

• US MDA – Arrow gallery. Covers joint tests to 2004.

• Boeing – Arrow Interceptor

• Israeli-Weapons.com – Arrow. Profiles the entire Homa system, including Green Pine and Lemon Tree.

• Claremont Institute MissileThreat.com – Arrow Missile

• Claremont Institute MissileThreat.com – Shabab-3

• Wikipedia – Arrow Missile

• yNet News – Iran: We will build 20 new nuclear plants. also discusses the Arrow system test, and the larger efforts underway on the international front.

• BBC News (Feb 11/07) – Israeli missile test ‘successful’

• Jerusalem Post (Dec 2/05) – ‘Arrow’ Scud buster test a success

• India Times (Dec 2/04) – Israel successfully tests Arrow missile system

• Claremont Institute MissileThreat.com (Nov 17/04) – Aegis Test Successful: Marks First Attempt Against More Advanced Separating Target. This had been a key concern re: the system.

• Globes Online (Nov 7/05) – Jane’s: First IAI-Boeing “Arrow 2” missile delivered to IAF

• US Army News Service (Nov 2/05) – Air defenders train with Israeli counterparts

• A Daily Briefing on Iran (Oct 29/04) – Why Haven’t We Seen This? Sometimes a picture really is worth 1,000 words, and it’s worth looking at this one from Ahmadinejad’s infamous speech… but the thousand words in documents like Hassan Abbassi’s “War Preparation Plan” can be at least as chilling.

• MEMRI Translation Special Dispatch Series (Oct 28/05) – Translated excerpts from Iranian President Mahmoud Ahmadinejad’s speech

• UPI (Aug 27/04) – Arrow anti-ballistic missile test fails. It was tested against a separating warhead. The articles gives details re: what happened – but the most fascinating part to me was the difference between American and Israeli weapons testing philosophies.

• JINSA (Aug 4/04) – First U.S. Test of Arrow Missile Defense System Goes ‘Beautifully’. Adds useful background re: the overall US-Israeli program.

• Israeli IDF (Aug 2/04) – The ‘Arrow’ System Test- A Strategic Accomplishment

Americas

• Tuesday saw Boeing CEO Dennis Muilenburg sit down with soon-to-be-President Donald Trump, to discuss matters including Air Force One and the F-18 Super Hornet. In relation to AF1, Muilenburg cited “great progress” on the simplifying of requirements, process, and certification for the new presidential aircraft. Talk surrounding the Super Hornet stemmed from suggestions made by Trump that extra procurements of an upgraded version of the fighter could compete with the F-35 Joint Strike Fighter.

• A 62-page report by the Pentagon’s chief weapons tester has released sort of good news in relation to the F-35: that there has been progress toward fixing a safety issue with the aircraft’s ejection seat. The Martin-Baker manufactured US16E seat and escape system was found to pose a significant risk of neck damage or death during ejection of pilots in the lowest weight range, resulting in pilots weighing under 136 lb being barred from flying the aircraft. But a three-part solution posed by the company to protect a lightweight pilot’s head and neck during ejection is currently being tested with light-weight pilots. This includes a lighter helmet to ease strain on the neck during the first phase of an ejection, a lightweight switch on the seat to delay deployment of the main parachute, and a fabric panel sewn between the parachute risers that will protect the pilot’s head from moving backward during the parachute opening, called a “head support panel” or HSP.

Middle East North Africa

• C-130 aircraft operated by Egypt will be fitted with electronic intelligence (ELINT) systems. Sierra Nevada Corp. won a Pentagon contract to provide the capability on one of the Egyptian Air Force’s 22 C-130H or three C-130H-30 Hercules aircraft, and could do so by either fitting integrated mission equipment or with a roll-on/roll-off (RO/RO) mission compartment. It is possible that some C-130 aircraft have already been fitted with similar ELINT equipment following a US DSCA notification to Congress in 2003, however it remains unknown whether the plan was officially implemented.

• The Israeli Air Force has tested a new self-protection system on its Lockheed Martin C-130Js to protect from surface-to-air missiles. Once equipped with the updated self-protection package, the air force’s new transporters will be able to operate in areas where terrorist groups have ready access to shoulder-launched heat-seeking missiles. At present, Israel operates four C-130Js, with plans to purchase three more.

Europe

• Airbus announced the successful refueling of an H225M Caracel helicopter with the help of two C295W medium transports. Contacts during the test were executed at speeds of 105 to 115 knots, with the company reporting that all crews reported a smooth operation. Air-to-air refueling of the multi-role combat helicopter can be performed during forward flight or while hovering.

• Russia has test-fired a Topol-M ICBM, one of the first ballistic missiles to be developed after the fall of the Soviet Union. Capable of being deployed from missile silos or APU launchers mounted on the 16-wheeled MZKT-79221 universal transporter-erector-launcher, the test was carried out to confirm the weapon’s stability. The weapon’s developers claim their product is able to bypass any current or planned US missile defense system, and can make evasive maneuvers to avoid missile interceptors during flight.

• Leonardo has been contracted to provide new jet trainer aircraft to the Italian Air Force as well as develop a new helicopter for the Italian Army. The company stated that the two contracts with the Italian National Armaments Directorate of the Italian Defense Ministry have a combined value of more than $530 million. Under the first award, Leonardo is to deliver five M-345A trainers to the air force and will work alongside the fleet of 18 twin-engine M-346s already ordered and currently used by the Italian air force for the advanced phase of pilot training. The second contract is for the development, production and testing of three reconnaissance and escort helicopter prototypes, of which 48 units will be eventually produced to replace the current fleet of AW129s.

Asia Pacific

• South Korea is shopping for 12 new naval helicopters as its Defense Acquisition Program Administration earmarks $768 million for the acquisition. A decision will be made by the end of 2018 with AgustaWestland’s AW-159, the Sikorsky MH-60R, and NHIndustries’ NH-90 are all in the running. Deliveries will take place between 2020-2022 and the choppers will be deployed on next-generation frigates to counter North Korean submarines and surface vessels.

Today’s Video

Refueling the C295:

Making a comeback?
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The Russian Ministry of Defense plans to replace nearly half of the Russian Army’s hardware by 2015, according to Defense Minister Sergei Ivanov. Ivanov said military spending over the next 8 years was planned at $189 billion, and that official Russian military spending had quadrupled from 2001 to reach $31 billion this year.

Ivanov said weapons purchases would include “17 intercontinental ballistic missiles, 4 military spacecraft with the same number of launch rockets for them,” as well as new bombers, ships, and other heavy equipment. The ICBMs are believed to be the new SS-27 Topol-M, and other plans reportedly include 50 new bombers, 31 ships of varying sizes, and fully re-arming 40 tank, 97 infantry and 50 parachute battalions. Some outside observers doubt Russia’s ability to fulfill these plans, however, given a closed military procurement system, that’s very resistant to scrutiny, in a country with a record of corruption. See Defense-Aerospace: “Russia to Spend $189bn on Weapons by 2015” | “Russia’s Defense Minister Unveils Plans to Overhaul Military.”

Update

January 19/17: Russia has test-fired a Topol-M ICBM, one of the first ballistic missiles to be developed after the fall of the Soviet Union. Capable of being deployed from missile silos or APU launchers mounted on the 16-wheeled MZKT-79221 universal transporter-erector-launcher, the test was carried out to confirm the weapon’s stability. The weapon’s developers claim their product is able to bypass any current or planned US missile defense system, and can make evasive maneuvers to avoid missile interceptors during flight.

Americas

• US Navy fleet pilots have expressed concerns over the safety of catapult launching the F-35C from aircraft carriers. Recent sea testing of the naval variant of the Joint Strike Fighter exposed an issue of excessive vertical oscillations, or a bouncing effect, during takeoff with the aid of a steam-driven catapult. However the program’s manager, Lt. Christopher Bogdan, downplayed the concerns stating that the oscillations only occur at very light gross takeoff weights and no F-35C going into combat would be taking off at such a light weight. “At medium weights and heavy weights you don’t see this problem at all,” Bogdan was quoted as saying.

• BAE Systems has been selected by Lockheed Martin to modernize the head-up display (HUD) for USAF F-22s. The existing HUD will be replaced with an all-digital version, based on BAE’s Digital Light Engine (DLE) technology to produce a form, fit, and function HUD that will fit seamlessly into the F-22’s existing HUD space. Work includes the replacement of the current conventional cathode ray tube image source on the current HUD with a digital version that offers increased reliability, eliminates high-maintenance and obsolete items.

Middle East North Africa

• Israel’s Defense Ministry has contracted Oshkosh Defense to provide 200 FMTV tactical trucks. Valued at $200 million, the deal comes after vigorous field testing by Israel of six trucks to ensure the firm’s Family of Medium Tactical Vehicles (FMTV) meets Israeli requirements. It’s expected that this order will be added too, as Tel Aviv begins the replacement of the nearly 60-year old tactical trucks currently used by its logistics branch.

Europe

• Rolls Royce has announced that they have reached a number of settlements with authorities in the UK, US and Brazil, following evidence of bribery and corruption involving company intermediaries on a number of defense deals. The total cost of the settlements is believed to be approximately $809 million, with the UK’s Serious Fraud Office set to earn the bulk of the funds, a national record, at nearly $500 million. Other payments to the US Dept. of Justice and Brazil’s Ministerio Publico Federal are set to receive $170 million and $25.58 million respectively. In the first year, Rolls is expected to hand over about $352.2 million to authorities.

• Eurofighter will provide a five-year support deal for four NATO countries operating the Typhoon fighter. Two contracts were signed between NETMA, the NATO Eurofighter & Tornado Management Organization on behalf of core Eurofighter nations, and Eurofighter Jagdflugzeug GmbH on behalf of aircraft makers Airbus Defense and Space, BAE Systems and Leonardo. The deals cover the sustainment of engineering capabilities and program management, and for logistics, repairs, and the provision of spare parts for the Eurofighter fleet.

Asia Pacific

• An inquest into the third launch failure of India’s Nirbhay cruise missile has found that the missile’s wings failed to deploy properly during its flight. Following take-off, the wings became stuck at 60 degrees position for about 1.5 seconds, causing the missile to roll rapidly and overwhelming its Inertial Navigation System (INS). Engineers then needed to abandon the test as the missile had veered off its flight path.

• Taiwan’s military has laid out a timeline for their indigenous advanced jet trainer program, with the aircraft slated to make its flying debut in June 2020. State-owned Aerospace Industrial Development Corporation (AIDC) is currently on a hiring spree, looking to recruit additional engineers in order to get blueprints completed by the middle of this year. Taipei expects to have a working prototype rolled out by September 2019 and into production by 2021. AIDC has also begun work on the Republic of China Air Force’s F-16V upgrade program. Under the Phoenix Rising Project, the team will upgrade Taiwan’s F-16A/B fleet by 2023.

• A British-Japanese technical feasibility study for the Joint New Air-to-Air Missile (JNAAM) is expected to be completed by this year. Preliminary research into the missile has already found that if both countries were to continue with the project’s development, it potentially could be the world’s top air-to-air missile on the market. The JNAAM is an attempt by London and Tokyo to merge the AESA missile seeker from Japan’s AAM4B missile on the MBDA Meteor body.

Today’s Video

Iranian air-defense shoots at rogue quadcopter in Tehran:

FMTV Family
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The 14 variants in the Family of Medium Tactical Vehicles (FMTV) form the core of the USA’s new state-of-the-art medium military transport truck fleet. Which in turn forms the core of the “mature logistics capability” seen in the Iraqi theater and elsewhere. FMTV trucks are all automatic transmission, and range from 2.5-ton cargo and van models to 5-ton cargo, tractor, van, wrecker, tanker, specialty, and dump-truck models in various 4×4 and 6×6 configurations. Some models also have attached trailers that increase their carrying capacity. Even so, the use of common engines, transmissions, drivelines, power trains, tires, cabs, etc. create over 80% parts commonality between FMTV models. Where possible, commercial components are used for added savings.

There have been 3 main phases of the FMTV program, including the last “SO23” open competition in 2003. All told, more than 50,000 FMTV trucks in various models have been delivered to the US Army. A bridging order to BAE continued production in Sealy, TX from 2008 through 2010, but the 4th phase re-compete saw a new firm begin FMTV production – alongside heavy truck production for the Army (FHTV) and Marines (LVSR), and medium trucks for the US Marine Corps (MTVR).

FMTV Program & Production

FMTV 8×8 ILHS
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Under the new contract, Oshkosh Corp. has been awarded a competitive, 5-year requirements contract to build up to 12,415 trucks and 10,926 trailers, and provide associated support and engineering services. The total estimated contract value at award was $3.023 billion.

BAE Systems subsidiary Stewart & Stevenson won the initial FMTV competition to begin producing these trucks, and has retained the manufacturing contract through previous rebuy competitions, a merger with Armor Holdings, and Armor Holding’s absorption into BAE. The current FMTV rebuy program is a 5-year requirements contract award for up to 23,000 vehicles and trailers, as well as support services and engineering. The addition of support services is significant, and can amount to a notable portion of the contract’s full value over time.

Subsequent reports indicate that for this re-buy program, BAE Systems submitted a bid 20% lower than the current FMTV price, despite a supply chain for FMTV that is 60% directed source (i.e. sub-contractors and parts specified by the government). Oshkosh’s bid was reportedly 33% below the current FMTV price.

In addition to their role as the backbone of the US Army’s truck fleet, FMTV trucks serve as the base for key weapons systems like the future MEADS air-defense system and the new HIMARS air-portable multiple rocket launchers, and as the base for some blast-resistant vehicles like BAE’s Caiman. These designs are excluded from the FMTV re-buy.

Even without these specialty variants, FMTV production has ramped up sharply over the last few years. Initial rates of production were approximately 2,400 trucks per year, but that rate has now accelerated to 7,200 (about 32/day) and was expected to reach over 8,000 per year (about 42/day) at BAE’s plant in Sealy, TX during FY 2009.

Heavy use in theater and casualties of chance or battle have contributed somewhat to this production ramp-up, but other factors also play a major role. One is the desire to grow the US Army by over 60,000 soldiers. The importance of logistics means that more soldiers will need more trucks, especially as the regular army focuses on assuming more of the sustainment role that has traditionally been assigned to the National Guard and Reserves. Meanwhile, those military reserve forces are driving 30 and even 40 year old trucks that are reaching the end of any useful life cycle, and must be replaced quickly.

These factors mean that the FMTV’s production pace is unlikely to abate much, creating high hurdles for Oshkosh to meet. Fortunately, intellectual property rights are not an issue, as the government owns the blueprints. On the other hand, even “build-to-print” contracts usually end up accommodating contractor-specific systems and improvements. FMTV design had been frozen at the A1P2 version prior to this recompete, in order to ensure a level playing field, but a successful award opens the door to a new development and enhancement schedule. That was part of initial and ongoing discussions with the US Army, as Oshkosh prepared to ramp up its own FMTV production. So far, the transition is going well.

Budgets and production orders under this new contract include:

• FY 2010: $1.438 billion ($5.5M RDT&E, $1.344 billion procurement for 8,637).
  
• FY 2011 request: $1.438 billion ($3.7M RDT&E, $1.435 billion procurement for 4,652).
  
• FY 2012 request: $ 448 million ($4.0M RDT&E, $ 432.9M procurement for 2,390, $11.1M supplemental funding for 32 more to make 2,442).

Contracts and Key Events

Oshkosh FMTV
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The current FMTV rebuy program is a 5-year firm-fixed-price requirements contract award that was originally intended for up to 23,000 vehicles and trailers, as well as support services and engineering. It has now surpassed those totals. Unless otherwise noted, US Army TACOM Life Cycle Management Command in Warren, MI, manages the contracts, and Oshkosh Corp. in Oshkosh, WI is the contractor. Bids for the original contract were solicited on the World Wide Web, with 3 bids received.

FY 2015-2017

January 18/17: Israel’s Defense Ministry has contracted Oshkosh Defense to provide 200 FMTV tactical trucks. Valued at $200 million, the deal comes after vigorous field testing by Israel of six trucks to ensure the firm’s Family of Medium Tactical Vehicles (FMTV) meets Israeli requirements. It’s expected that this order will be added too, as Tel Aviv begins the replacement of the nearly 60-year old tactical trucks currently used by its logistics branch.

September 24/15: Oshkosh Defense has been handed a $47 million modification to add an additional 184 medium tactical vehicles to a $4.7 billion Foreign Military Sales order in 2009, with the new vehicles headed for Iraq. The vehicles are scheduled for delivery by February 2017.

FY 2012

April 13/12: A $60.1 million firm-fixed-price contract modification for FMTVs. Work will be performed in Oshkosh, WI, with an estimated completion date of Sept 30/14 (W56HZV-09-D-0159).

April 2/12: A $294.7 million firm-fixed-price contract for FMTV support services. Oshkosh, on the other hand, says the contract will buy “more than 2,500” FMTV trucks and trailers for the U.S. Army, and adds that the US Army has now ordered “more than 29,000” FMTV trucks and trailers from them. From a program standpoint, that would be on top of previous orders to Armor Holdings and its eventual buyer, BAE Systems.

Work will be performed in Oshkosh, WI, with an estimated completion date of Sept 30/14 (W56HAV-09-D-0159). See also Oshkosh release.

March 30/12: The Pentagon’s Selected Acquisitions Report ending Dec 31/11 includes FMTV, and isn’t good news for Oshkosh:

“Program costs decreased $1,965.7 million (-10.5%) from $18,731.4 million to $16,765.7 million, due primarily to a quantity decrease of 7,463 trucks from 87,839 to 80,376 trucks (-$1,266.1 million) and associated schedule, engineering, and estimating allocations

• (-$504.1 million). The quantity decrease also lowered estimates for non-recurring engineering, specifically, program management, non-recurring testing, and in-house and contractor engineering costs (-$135.2 million). There were additional decreases for unit cost savings from Engineering Change Proposal (ECP) definitization (-$146.8 million). These decreases were partially offset by the application of revised escalation indices (+$80.4 million).”

Feb 23/12: Oshkosh Defense unveils its “FMTV Enhanced Protection & Mobility Demonstrator” (EPMD) at AUSA Winter. The prototype vehicle utilizes the same Oshkosh TAK-4 independent suspension system that equips USMC trucks, and which is retrofitting many Army MRAPs. That change will improve mobility, while a custom-fitted Oshkosh Underbody Improvement Kit (UIK) improves protection against land mines.

These changes are important on a business level, because Oshkosh was depending on sales of upgrades and improved versions, in order to offset its unprofitable base bid (vid. Jan 9/12). Now the question becomes whether the US Army will bite.

Feb 3/12: Proxy battle win. Oshkosh’s 8-K/A filing says that all 13 of the corporation’s nominated Board members were elected, and all 6 of the Icahn Group’s nominees were defeated.

Icahn came close to getting a seat on the Board for his group, and that 13th seat had to wait for the full count, but overall, it’s a pretty stinging rebuff. The company nominee with the fewest share votes was Harvey N. Medvin, at 40,619,097; 5 of his 12 colleagues received over 79 million share votes. The Icahn nominee with the most share votes was Samuel Merksamer, at 39,016,262; 3 of his 5 colleagues received less than 15.5 million share votes, and those 3 were the only nominees to have more “withheld” votes than affirmative votes.

Jan 17/12: A $17.1 million firm-fixed-price contract modification to buy FMTV air conditioning install kits. Work will be performed in Oshkosh, WI, with an estimated completion date of Oct 31/13 (W56HZV-09-D-0159).

Jan 17/12: Oshkosh touts endorsements of its Board of Directors slate from independent proxy advisory firms Glass Lewis & Co. (Glass Lewis) and Egan-Jones Proxy Services (Egan-Jones). Voting is Jan 27/12.

Jan 9/12: Proxy battle – I choose you, Pikachu! The proxy skirmish with Icahn turns into a war – and the FMTV contract is a prominent feature. Icahn’s SEC DFAN14A materials express concern about the coming FHTV re-bid, and identify Oshkosh’s FMTV win strategy as 1 of 2 devastating strategic mistakes (the 2006 JLG acquisition being the other) that have consumed management’s attention and driven down profitability, even as other business segments have floundered and need focus:

“We believe that the FMTV represents the single largest problem with the future of this company… We believe this unprofitable contract represents management’s unrealistic attitude and poor planning, as well as the board’s lack of oversight on a product that represents over half of segment revenue.”

Oshkosh management’s filing points to the JLG acquisition as key to its M-ATV MRAP win, cites growing market share in defense, and asks for shareholders to wait for its markets to pick up. It directly attacks Icahn’s Board candidates as, in effect, a bunch of dependent puppets with little relevant experience in its key segments of defense or construction, and poor records with other companies. Management adds that Mr. Icahn has tried to circumvent Wisconsin’s business combination statute for shareholder protection, alleges that he had offered no substantive ideas to Oshkosh management when asked (though his DFAN14A has clear positions), and states that he refused to discuss his analysis behind the Navistar merger recommendation. In its 8-K filing, however, Oshkosh management make a concession, by pledging to “report profit on its Family of Medium Tactical Vehicles contract for the first quarter of fiscal 2012.”

The facts of the matter do make it appear that the Army played its FMTV hand well, and Oshkosh chose a strategy that failed at every point. As BAE surmised at the time, given the value of Army-specified sub-contracts, Oshkosh’s bid could not be profitable, and has not been. Worse, the Army chose not to be interested in enhancements, which would have restored some profit for Oshkosh; they also front-loaded FMTV purchases, before price-escalation clauses in the contract could kick in. Though this acquisition approach drove down short-term costs, in the long term, it could actually backfire on the Army by destroying 2 key suppliers. With BAE’s Sealy, TX truck plant largely emptied of work and staff, an analysis from the Lexington Institute sounds a cautionary note for the US Army, and wonders if its procurement victory will prove as pyrrhic as Oshkosh’s:

“[Oshkosh] finds itself in this predicament because it made some ill-timed acquisitions at the top of the sub-prime real estate boom (most notable lift-maker JLG), and then sought to compensate for its error by bidding very aggressively on Army truck contracts… workers would not be the only victims of the [proposed Navistar merger]… [A commercial suppliers strategy] ignores the loss of control implied for the Army customer. When you are by far the biggest source of demand for a company’s products, then you can pretty much dictate the terms of the relationship. When you are only one of many customers, you have less influence… The fact that submerging Oshkosh into the Navistar culture will give the Army fewer competitive options in the future is fine with [Icahn]; that’s how you get pricing power.”

It all comes to a head on Jan 27/12. See: Oshkosh 8-K | Oshkosh management’s SEC DEFA14A filing (see esp. pp. 38-44) | Icahn Group DFAN14A arguments | The Street | Reuters | Lexington Institute analysis.

Jan 5/12: A $27.3 million firm-fixed-price contract modification for more FMTVs. Work will be performed in Oshkosh, WI, with an estimated completion date of June 30/13. The original bid was solicited through the Internet, with 3 bids received by US Army Contracting Command in Warren, MI (W56HZV-09-D-0159).

Jan 5/12: A $7.6 million firm-fixed-price contract modification to support FMTVs. Work will be performed in Oshkosh, WI, with an estimated completion date of Oct 13/13. The original bid was solicited through the Internet, with 3 bids received by US Army Contracting Command in Warren, MI (W58HZV-09-D-0159).

Dec 6/11: Navistar/Oshkosh merger? Billionaire Carl Icahn owns 10% of Navistar, and 9.51% of Oshkosh, so his comments that the 2 companies should merge draws a lot of attention. He tells CNBC:

“I definitely think it would be a good merger. I think there would be a lot of synergy. I own stock in both and I think shareholders of both companies would benefit.”

Both Boards of Directors are maneuvering defensively around Icahn. Navistar agreed to put its Board up for election each year, but agreed not to propose his own slate of directors at the annual meeting. Things are a bit more open at Oshkosh, where Icahn is proposing Board slates, and has been increasingly critical of existing management.

Nov 10/11: A $19.1 million firm-fixed-price contract for 129 FMTVs; 11 armor B-Kits; 20 FMTVs; and 20 FMTV “High Mobility Artillery Rocket System B-Kits; with install for United Arab Emirates.” Work will be performed in Oshkosh, WI, with an estimated completion date of June 30/13 (W56HZV-09-D-0159).

The wording above is somewhat unclear, but Oshkosh has now confirmed that the UAE order is just 20 trailers and armoring B-kits. The UAE has an active HIMARS program, which began with their September 2006 DSCA request. As a Feb 3/09 announcement from BAE suggested, the UAE had already bought its FMTV chassis.

FY 2011

Sept 29/11: A $30 million firm-fixed-price contract modification for 452 FMTV family trucks, and 86 up-armoring B-kits. Work will be performed in Oshkosh, WI, with an estimated completion date of June 30/13 (W56HZV-09-D-0159).

According to DID’s records, based on announced contracts, this brings the total number of FMTV trucks ordered under this new contract to 23,665, plus 2,806 trailers, and 127 up-armoring B-kits, at a cost of about $3.69 billion.

Aug 1/11: A $904.2 million firm-fixed-price contract modification to procure 6,963 FMTV truck variants. Work will be performed in Oshkosh, WI, with an estimated completion date of June 30/13 (W56HZV-09-D-0159). See also Oshkosh release.

Aug 1/11: James Hasik’s new research service offers a timely memorandum, asking how much money Oshkosh is losing on its FMTV contract: “Just how much money is Oshkosh losing on the FMTV contract? And should the customer care?.”

That has long been suspected, as over 60% of the FMTV truck’s cost is fixed-price, mandatory “directed source” items from subcontractors, and Oshkosh’s bid was reportedly 33% below the SO23 contract’s FMTV price. Using information from past orders, such as those listed here, he gets average current contract costs of $181,000 per truck and $71,000 per trailer, which seems to match up with order totals so far. Further estimates involving relative truck production rates, relative value, and announced margin rates for the defense division:

“…give us estimates of -21% as the FMTV margin in Q2 2011, -15% as the FMVT [sic] margin in Q3 2011… with some slightly different assumptions, I got margins of -10% and -6%.1 As the FMTV contract will account for at least $150 million of Oshkosh Defense’s business over the next five years, taking losses can’t be shrugged off… as Charlie Szews has taken personal control at Defense, the problem has clearly been recognized. And indeed, if the overall margin is improving with increasing volume, then they’re not losing money on every truck. It’s not as though the value of the bill of material exceeds the sale price. There’s a positive contribution margin, so there’s hope that things might work out… Today, we have the beginnings of ex post measures – actual, if inferred, performance on the contract. Losing 15 percent on a $295 million gig means that you’re spending $347 million to get that 295; in short, that’s a $52 million quarterly loss. Yet quite apart from the commercial business, Defense is still grossing about a billion dollars quarterly, and the bonanza of the M-ATV work is almost at an end. So that bid on the FMTV contract, which now seems to have been hazardous, should still not prove fatal. Oshkosh may yet turn it around, but even if it doesn’t, only Oshkosh’s shareholders will suffer.”

While Hasik’s concern is focused on whether the contract would endanger Oshkosh as a company, there’s also an industrial base issue, wherein a supplier bids below cost, in order to drive a competitor out of business and secure a monopoly or near monopoly position with respect to American production facilities. That’s precisely the situation in the Boeing/Airbus tanker competition, which will also cost taxpayers above and beyond the bid price. It’s likely that as the defense business contracts under spending cuts, we’ll see more of this behavior. It isn’t clear that the US DoD has thought about this issue, and determined the best guidelines for responding.

July 25/11: A $30.5 million firm-fixed-price contract for 185 FMTV trucks and 1 armor B-kit. Work will be performed in Oshkosh, WI, with an estimated completion date of April 3/13 (W56HZV-09-D-0159).

June 14/11: A $7 million firm-fixed-price contract for 44 FMTVs. The contract runs until March 31/12 (W56HZV-09-D-0159).

April 20/11: A $71.8 million firm-fixed-price contract for 417 FMTVs of different types. Work will be performed in Oshkosh, WI, with an estimated completion date of March 31/12 (W56HZV-09-D-0159).

April 15/11: The Pentagon’s Selected Acquisitions Report ending Dec 30/10 includes FMTV program changes – but they cost adjustments are downward:

“Family of Medium Tactical Vehicles (FMTV) – Program costs decreased $1,895.2 million (-9.2 percent) from $20,626.6 million to $18,731.4 million, due primarily to reductions in costs resulting from the award of a new competitive re-buy contract (-$2,308.6 million), acceleration of the procurement buy profile (-$328.9 million), and a change in the model mix (-$230.4 million). There are additional decreases for fielding and non-recurring costs (-$236.7 million) and other support (-$149.1 million) due to early completion of the program. These decreases are partially offset by a quantity increase of 4,654 trucks from 83,185 to 87,839 trucks (+$786.5 million) and associated schedule, engineering, and estimating allocations

• (+$588.8 million).”

• Note: Quantity changes are estimated based on the original SAR baseline cost-quantity relationship. Cost changes since the original baseline are separately categorized as schedule, engineering, or estimating “allocations.” The total impact of a quantity change is the identified “quantity” change plus all associated “allocations.”

Feb 28/11: A $25.2 million firm-fixed-price contract for 315 FMTV medium trucks, 3 B-Kits, and program support. Work will be performed in Oshkosh, WI, with an estimated completion date of March 31/12 (W56HZV-09-D-0159).

According to DID’s records, based on announced contracts, this brings the total number of FMTV trucks ordered under this new contract to 15,604.

Feb 14/11: The Pentagon issues its FY 2012 budget request, even as the new 112th Congress is forced to debate a FY 2011 budget, in order to repair the failure of the 111th Congress to pass one. The FY 2010-2011 requests were around $1.4 billion, but FY 2012’s request drops sharpy to $448 million for a total of 2,442 more FMTV trucks).

Dec 3/10: A $413.2 million firm-fixed-price contract for 1,800 family of medium tactical vehicles for the US Army National Guard. Work will be performed in Oshkosh, WI with an estimated completion date of March 12/13 (W56HZV-09-D-0159).

Dec 3/10: A $100.1 million firm-fixed-price contract for 1,800 family of medium tactical vehicles for the US Army National Guard. Work will be performed in Oshkosh, WI with an estimated completion date of March 12/13 (W56HZV-09-D-0159). DID is investigating the discrepancy in these figures.

Nov 19/10: As final deliveries from BAE Systems continue, and initial deliveries from Oshkosh begin, the U.S. Army is busy testing the new FMTV trucks at Aberdeen Proving Ground, MD, and Yuma Proving Ground, AZ. Lt. Col. Shane Fullmer, the Army’s product manager for medium tactical vehicles:

“Testing is going very well. The process involves 20,000 miles of reliability and durability testing – plus performance testing which is everything from [performance on] slopes to speed, endurance and payload capability… Given what we’ve seen to date, we are in good shape to easily meet our reliability requirements.”

The trucks are also subject to live fire blast testing, and performance testing including fording, hill grade/ payload tests, pull capability for tractors, etc. Testing is expected to conclude in the spring of 2011. US Army.

Nov 19/10: A $797.9 million firm-fixed-price contract for 4,773 FMTV trucks – though the Oshkosh release says that 590 trailers are part of that total, meaning truck orders are just 4,183. Work will be performed in Oshkosh, WI, with an estimated completion date of March 31/12. Oshkosh is more exact: deliveries are scheduled to begin in September 2011, and finish in August 2012. (W56HZV-09-D-0159).

Based on announced contracts listed in this article, the current rebuy program has issued $2.1 billion in contracts so far, to buy 13,239 trucks, 1,156 trailers, and 37 armoring b-Kits.

FY 2010

Sept 10/10: A $260.1 million firm-fixed-price contract for the production of 2,060 FMTVs. Work is to be performed in Oshkosh, WI with an estimated completion date of March 31/12. (W56HZV-09-D-0159). Oshkosh release

Sept 3/10: A $20.5 million firm-fixed-price contract for 122 FMTV vehicles by March 31/12, with work to be performed at Oshkosh, WI (W56HZV-09-D-0159).

Aug 16/10: A $201.5 million firm-fixed-price contract for 1,288 FMTV trucks. Work is to be performed in Oshkosh, WI, with an estimated completion date of March 31/12 (W56HZV-09-D-0159).

July 2/10: A $105.6 million firm-fixed-price contract for 621 FMTV trucks, and 43 trailers. Work will be performed in Oshkosh, WI, with an estimated completion date of March 31/12 (W56HZV-09-D-0159).

July 2/10: A $30.9 million firm-fixed-price contract for 167 FMTV trucks, 37 armor b-kits, and 119 trailers. Work will be performed in Oshkosh, WI, with an estimated completion date of March 31/12 (W56HZV-09-D-0159).

May 27/10: Oshkosh Defense ships its first FMTV trucks and trailers to the U.S. Army, including a Long-Term Armor Strategy (LTAS)-compliant cab. The 2 trucks represent 2 different FMTV variants and their trailers, and were shipped ahead of schedule. The original timeline had Oshkosh Defense beginning to deliver full production units in October 2010. Oshkosh Defense.

May 10/10: Oshkosh Corp. in Oshkosh, WI receives a $410.1 million firm-fixed-price contract for 2,230 FMTV family trucks, and 404 trailers, for deliveries scheduled between March and December 2011. To date, Oshkosh Corporation has received orders valued at more than $690 million under the new FMTV contract, and the company will begin supplying initial trucks to the Army this month for performance and durability testing. Production deliveries will begin in October 2010, and the contract’s formal completion date is March 31/12. (W56HZV-09-D-0159).

As part of its efforts, Oshkosh Corporation has also broken ground on a new 150,000-square-foot, state-of-the-art electrocoat (E-coat) facility in Oshkosh, WI, to support the FMTV program, and possibly other programs. The E-coat facility will help ensure corrosion protection, one of the FMTV fleet’s key attributes in order to meet its demanding time-of-service requirements; competitor BAE Systems had an operational E-coat facility of its own in Sealy, TX, but that may now be closed. Start-up of Oshkosh’s facility will begin in late summer 2010, and the firm is also moving into a new building in Warren, MI for FMTV System Technical Support (STS) work. The firm expects to hire up to 190 new employees. See also Oshkosh Defense release.

April 27/10: The Oshkosh award may end up complicating life for the M142 HIMARS rocket launcher program, fielded by the US Army and Marines, and by several foreign militaries. The Army has 2 more years of buying HIMARS, but there’s a 14-month lag from contract award to delivery. The Army planned to procure its last 44 BAE chassis for the HIMARS system in FY 2011 under its bridging contract, but BAE is expected to discontinue FMTV production during the period of time it would take to build the chassis.

Col. Dave Rice, program manager for precision fires, rocket and missile systems, added that BAE’s Increased Crew Protection (ICP) cab for the HIMARS is a proprietary design. The Army will “have to see if the cab changes are militarily significant,” and then decide what to do. Gannett’s Army Times.

April 23/10: A bnet columnist criticizes Michigan for awarding Oshkosh a tax break, in order to do what it had to do anyway:

“As part of the contract, Oshkosh Defense agreed to establish a technical center in Michigan that will eventually employ up to 200 people. The office will be located on the site of the closed Detroit Arsenal Tank Plant. The Army office that manages vehicle acquisition is located in the area, so it makes sense for Oshkosh to have people nearby.

And there’s the rub. The state gave Oshkosh a $6.4 million tax credit to help build the facility. This is part of a “renaissance zone” program to revitalize older, existing industrial sites. Oshkosh won’t pay taxes until 2011 at the earliest and then it might well be at a reduced rate.

The question is: Does Oshkosh need the help? The company would have needed an office, anyway, to manage both the MRAP-ATV and the FMTV contracts. So it appears that Michigan is essentially paying some of Oshkosh’s costs. Considering that the state is running a $1 billion budget deficit (after $1 billion in spending cuts), it’s hard to justify giving Oshkosh tax breaks to do something it was already planning to do.”

New / Old kid in town

Feb 12/10: Oshkosh keeps the award. US Department of Defense:

“The Department of the Army announced today that it has re-evaluated the contract award decision for its Family of Medium Tactical Vehicles (FMTV) originally made on Aug. 26, 2009. This change was based on Government Accountability Office’s (GAO) recommendations. Accordingly, Oshkosh Corp. has been awarded a competitive, five-year requirements contract for production of up to 12,415 trucks, 10,926 trailers, and associated support and engineering services. The total estimated contract value at award was $3.023 billion… From Dec. 21, 2009, to Jan. 22, 2010, the Army re-evaluated the proposals in accordance with the GAO’s recommendation. Subsequently, there was an Office of the Secretary of Defense peer review affirming the Army’s reevaluation process.”

Oshkosh celebrated the award in a corporate release, while BAE Systems was forced to notify its investors:

“…the Group will include in its 2009 accounts an impairment of goodwill and other intangible assets amounting to [GBP] 592 million relating to the Armor Holdings Inc. transaction and specifically the FMTV product line.”

The news is a major blow to BAE Systems’ $4.53 billion acquisition of Armor Holdings. With its core FMTV business about to end, MRAP production finished, and the M-ATV competition lost to Oshkosh, much now rides on the JLTV competition. At the same time, BAE Systems’ UK facilities recently announced potential job losses in its submarine business, and a minor trimming of its Nimrod-related workforce.

Dec 14/09: Congress’ Government Accountability Office issues its decision, recommending that the Army reevaluate the offerors’ capability evaluation factor, and make a new selection decision. GAO managing associate general Michael Golden said that:

“Our review of the record led us to conclude that the Army’s evaluation was flawed with regard to the evaluation of Oshkosh’s proposal under the capability evaluation factor, and the evaluation of Navistar’s past performance… We also denied a number of Navistar’s and BAE’s challenges to the award to Oshkosh, including challenges to the evaluation of Oshkosh’s price.”

By statute, the Army now has 60 days to inform the GAO of its response to the GAO’s recommendations. BAE Systems welcomes the decision, while looking forward “to reviewing the full GAO report and its recommendations so we can fully consider the implications for our business and our options…” Oshkosh Corporation Chairman and CEO Robert G. Bohn said in their corporate release that challenges to the evaluation of the Oshkosh Corporation price had been denied, adding that:

“It is important to realize that today’s decision did not recommend proposal revisions nor did it recommend termination of our contract… We believe that when these narrow issues are reconsidered, the Army’s decision to award Oshkosh Corporation the FMTV contract will be maintained.”

See: Redacted GAO decision [PDF] | Navistar release | Oshkosh release | The Hill.

Nov 19/09: Oshkosh discusses its efforts to secure tax breaks from the city of Oshkosh, as it plans to expand its manufacturing facilities by adding a new 150,000-square-foot electrocoat (E-coat) painting facility for FMTV production. The company plans to break ground on the new E-coat facility in December 2009, with start up beginning late summer 2010. Oshkosh | The Northwestern.

The financing package would have the city provide up to $5 million in tax incremental financing (TIF), while the state would provide $35 million in tax credits and other assistance for the plant. The TIF district is pending approval by the Oshkosh Common Council. BAE Systems promptly weighs in, of course:

“BAE Systems has two electrostatic E-Coat stations at our Sealy, Texas facility, one for large parts and one for small parts. As outlined on p. 41 of the redacted second supplemental protest document, the Army’s FMTV re-buy solicitation provided that: “An offeror that currently has existing facilities that can be utilized, or modified to build FMTV vehicles may be determined to be less risky than an offeror that has to acquire facilities to produce vehicles on the contract.” E-Coat is a requirement to build FMTV and is at the heart of its corrosion protection. Parts must be completely immersed in electrophoretic paint emulsion, at which point an electrical charge is run through both and then the parts are drained entirely.

As we read of our competitor seeking taxpayer assistance to build a new E-coat facility – in a very short time frame – to meet the requirements of the FMTV contract, we find it totally inconsistent with the source selection criteria to believe that BAE Systems, with two E-coat facilities in current operation, is considered equal in risk with a company that doesn’t have this essential capability and is looking for the taxpayers to pay for it.”

Nov 18/09: BAE Systems holds a teleconference to discuss their protest, and the recent GAO hearings. A GAO decision is expected by Dec 14/09, which is the 100th day, in conformance with GAO rules.

One clarification up front is that FMTV variants used as part of other weapons system, such as HIMARS rocket launchers, SLAMRAAM air defense systems, MEADS air defense systems, and the FMTV Low-Velocity Airdrop version used by airborne forces, were all removed from the re-buy competition in February 2009. Program managers for those systems will apparently make those decisions, but BAE does have some unique intellectual property in those vehicles’ current designs. If lack of production orders causes BAE to shutter their Sealy, TX facility, the firm would have to begin production of those variants elsewhere at added cost; alternatively, any competitor selected instead would have to replicate and test the vehicles’ mission-specific design features, either at its own expense or at the government’s. The derivative Caiman MRAP was never part of the FMTV re-buy, and remains BAE’s intellectual property.

In response to questions from DID regarding the applicability of Oshkosh’s rapidly fielded and produced M-ATV MRAP as a risk-evaluation precedent, BAE representatives made several points. The core of those points was that M-ATV was an internally-held design, whereas FMTV is a government-held TDP (technical documentation), which does not include all of the know-how needed to build the vehicle, and has a much longer and more involved process for changes. In conjunction with a production schedule that resembles M-ATV’s aggressiveness, and the production of only 1 FMTV prototype from Oshkosh to date, BAE believes this represents added risk.

BAE Systems also believes there’s a question around the FMTV A1 LTAS-compliant (Long Term Armoring Strategy) cab design, which is currently BAE’s design. Competitors must re-design that cab, and replicate and test the A1P2 cab’s level of protection, which is just being fielded now. An Aug 13/09 Oshkosh release says that Oshkosh has done this design work at its own expense, but the release does not mention testing; BAE’s protest includes their observation that a design which requires testing and verification adds production and design risk.

Finally, with respect to reports from sources like the Lexington Institute (vid. Nov 4/09 entry), BAE representatives confirmed that Oshkosh’s $3 billion total evaluated price bid underbid the current FMTV price in the neighborhood of 30%, but add that BAE’s re-buy bid price was lower, too. The government, “for whatever reason,” published Oshkosh’s contract bid on their web site, down to variant level pricing. BAE systems knows the trucks very well, and fully 60% of the trucks’ value is directed source, which means the winning contractor must use those suppliers. BAE representatives do not believe that Oshkosh’s prices are realistic, and display similar skepticism regarding some of the elements of Oshkosh’s insourcing claims.

Oshkosh Defense was contacted regarding BAE claims, but chose not to respond.

Nov 18/09: The Greater Houston Partnership business advocacy umbrella organization releases the results of their study, which claims that the region would lose 3,400 direct jobs and 6,766 indirect jobs if Oshkosh retains the contract, with other effect spreading beyond to the state of Texas. The Partnership is joining other Sealy FMTV Task Force members in calling on the Army to put the contract out for a re-bid – in effect, a do-over. PR Newswire release.

Nov 17/09: BAE Systems releases a redacted version of its protest to the public, following agreement from the GAO and even Oshkosh. Its core allegation is that the buy was not best value, but became a solely price-based competition that disregarded risk factors. The protest also cites other past GAO cases that it believes to be analogous. Redacted FMTV Protest [PDF, 6.5 MB].

Nov 9-10/09: The GAO holds hearings regarding the FMTV protest. GAO hearings usually held when there are conflicting factual issues, and the dispute cannot be resolved merely from submissions. This is longer than usual for such hearings, but reports indicate that an array of Army witnesses were called.

Nov 4/09: Loren Thompson of The Lexington Institute predicts that the GAO will overturn the Army’s decision:

“Let’s revisit what happened in that competition, and ask whether a protest seems warranted…[The Army] made the award after concluding that incumbent BAE Systems and Oshkosh were essentially equal in all non-cost selection criteria, but that Oshkosh offered a more attractive price… On price, the Army accepted a bid from Oshkosh that is 30% below the price BAE Systems is currently charging for the vehicle – even though Oshkosh, with no direct experience in manufacturing the product, must turn out a vehicle with the same performance specifications and features, using many of the same suppliers. When challengers to an established producer offer such huge price reductions to win a contract, it is standard procedure to conduct a rigorous analysis of how realistic the challenger’s price is. Yet there is little evidence the Army made any such effort… leveling of non-cost factors… allowed… a “best value” award solely on the basis of price. But unlike BAE, Oshkosh did not have all production facilities or tooling in place; its workforce was not experienced in building FMTV trucks; it did not have established relationships with all suppliers; and it did not have a validated design for the required armored cab in the vehicle. So to say the rivals represented equivalent risk is simply not believable – especially given the very aggressive price targets Oshkosh’s bid required it to meet. GAO will see this award for what it was, and act accordingly.”

See: Issue Brief | Subsequent elaboration.

Oct 16/09: BAE Systems files another supplemental protest to the GAO:

“…after finding additional concerns with the source selection process during the U.S. Army’s Family of Medium Tactical Vehicles (FMTV) rebuy competition… BAE Systems is increasingly convinced the service’s source selection evaluation was flawed and that the Army did not follow its own stated objective to conduct a best-value FMTV competition based on a clear-cut set of criteria… BAE Systems is requesting that a redacted version of the supplemental protest be made available publicly. In order for release of a redacted supplemental protest, all parties involved in the matter must agree to its release.”

FY 2009

Sept 11/09: BAE Systems files a supplemental protest.

Sept 4/09: Both BAE Systems and Navistar Defense file GAO protests (file# 401865.2, 401865.1) regarding the FMTV award to Oshkosh. BAE:

“BAE Systems has filed a protest with the U.S. Government Accountability Office (GAO), asking the agency to review the decision by the U.S. Army to award a contract to a competitor for the Family of Medium Tactical Vehicles (FMTV) rebuy program. After a detailed analysis of the information provided by the Army, before and during the formal competition debrief, the Company believes that the Army did not properly evaluate the proposals, consistent with the Government’s stated requirements, and the Army failed accurately to assess the various risks associated with the different proposals.”

The GAO protests will put the FMTV re-buy contract on hold until a decision is rendered. A decision is expected by Dec 14/09.

Aug 26/09: Oshkosh wins the FMTV production re-compete, and an initial $280.9 million order for 2,568 trucks and trailers, plus OY 01 data, additional care and storage, component first article test, first production vehicle inspection test, production verification test, live test family medium tactical vehicles winch, armor B-kits, and federal retail tax. Work is to be performed in Oshkosh, WI, with initial test vehicle deliveries are planned for mid-2010, followed by production vehicle deliveries later in that year. With an estimated completion date of April 30/10 for this order. Bids were solicited on the World Wide Web with 3 bids received by TACOM LCMC Warren, AMSCC-TAC-ATB in Warren, MI (W56HZV-09-D-0159).

Wisconsin Governor Jim Doyle is quoted as saying that the total contract could be worth up to $2.6 billion and create 2,000 production jobs in the state. That’s definitely conservative, with other analysts placing the value closer to $4.5 billion, plus maintenance. Through the state’s Enterprise Zone program, Wisconsin will provide up to $35 million in tax credits over the next 12 years to support the project. In response to the win, Oshkosh CEO Robert Bohn reportedly said that “We’ve been known for a long, long time as a manufacturer that delivers on time and I think that helped us.” While it certainly didn’t hurt, BAE Systems had its own strong delivery record, including the top ranking among MRAP vehicle suppliers. It is very likely that the key differentiators lay elsewhere; tellingly, Oshkosh would not comment on pricing.

Over the past 17 years, Armor Holdings/BAE Systems has delivered more than 56,000 FMTV trucks and trailers, which have maintained a 94% average operational readiness rate in both Iraq and Afghanistan. BAE’s financial planning assumed FMTV-related sales and maintenance activities of about $2 billion in each of 2009 and 2010, dropping to less than $1 billion per year from 2011 onward. BAE announced that it “will continue to fulfill these commitments and consider its options as it carefully reviews the Army’s latest decision.” Translation: a protest is possible. Its absence would be surprising in the current climate, given the contract’s potential value.

FMTV bridge buys and maintenance efforts will continue using BAE Systems on Sealy, TX over 2009 and 2010, per the existing bridge-buy contract and partnership with Red River Army Depot. During this period, Oshkosh will make preparations, discuss final design details with the US Army, and ramp up production.

The long-term earnings hit, and implicit questions regarding the current value of its $4.5 billion Armor Holdings acquisition in 2007, sent BAE’s stock sliding. With MRAP production ended, MRAP-ATV going to Oshkosh, and its FMTV mainstay removed, BAE Systems’ American land vehicle strategy has taken a series of body blows that make the future JLTV competition even more important to the firm. Oshkosh stock has gone in a different direction, in the wake of a sole-source award to continue producing the US Army’s FHTV heavy trucks, its status as the ongoing manufacturer of the US Marines’ medium (MTVR) and heavy (LVSR) truck fleets, and a recent multi-billion win in the blast-resistant M-ATV competition that will also make them a contender for the larger JLTV Hummer replacement buy. See: Oshkosh Defense | BAE Systems | Milwaukee Business Journal | Bloomberg | UK’s Financial Times | Reuters.

May 27/09: BAE Systems submits its bid for the FMTV re-compete. Their corporate release touts over 17 years of experience, during which their 2,700 person facility in Sealy, TX has manufactured more than 53,000 FMTV trucks and trailers in 21 variants.

BAE is touting the strength of its workforce and its embedded knowledge that goes beyond the blueprints, and into production processes, efficiency, and proven flexibility. The delivery record for FMTV and its derivative Caimin MRAP vehicles has been excellent; indeed, Caimin was the #1 MRAP vehicle in its ratio of on-time to promised deliveries. Then, too, there is the specialized infrastructure like BAE’s Sealy e-coat facility, and privately developed off-blueprint additions like “miles to go on this tank” indicators and other enhancements.

May 27/09: Oshkosh submits its bid for the FMTV A1P2 re-buy contract. Their main competitor is a Sealy, TX incumbent with a formidable performance record of its own. In that situation, Oshkosh’s required priorities are twofold: (1) Avoid anything that might tip the scales against them, even slightly. That means driving perceived performance risk as close to zero as possible, and creating a net zero for political risks; and (2) produce a proposal that offers credible improvements in price and/or performance, against a very strong competitor.

In discussions with DID, the firm outlined the core of its case. Assuming a level playing field, the key criteria for this contract are price and past performance. Oshkosh believes they have a very credible, fact-based price derived from their own experiences building about 10,000 MTVR medium trucks for the Marines, and the fact that almost 90% of FMTV suppliers are already Oshkosh suppliers.

In terms of past performance risk, they pointed to the fact that their integrated production line has conducted simultaneous production of 10 models, totaling 29 variants – a record that matches well with the FMTV re-buy’s high mix/ low individual volume schedule. Oshkosh also touts its performance in the area of engineering and logistics support, which has become an integral aspect of the FMTV program. Their work with MTVR and the Army’s FHTV heavy truck family gives them a very wide field support network, and the firm cites its fast delivery and fielding of up-armored heavy trucks after the Army confirmed its LTAS armoring strategy. They’re building on that record with their FMTV related risk-reduction investments, which include an internally-financed design for an LTAS-compatible FMTV cab.

If Oshkosh wins, production would mostly take place on the firm’s existing campus in Oshkosh, WI, with some sub-contracting to current subcontractors. That kind of concentration generally improves price and efficiency numbers, but lowers political leverage. The other potential political strike is the “industry consolidation” card, which notes the risks of placing all medium and heavy truck production (Army’s FMTV & FHTV, USMC’s MTVR & LVSR) with one supplier and, for the most part, one campus. Oshkosh’s response is to cite the number and range of large firms involved in the MRAP and JLTV programs, and to state their belief that there has been a fundamental industry change over the past few years. Oshkosh Defense release.

Additional Readings

• Global Security – FMTV