C-130 AMP Program Receives Contracts, Heads Into Uncertainty
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The USA’s C-130E/H fleet suffers from 2 key problems: (1) many aircraft, especially Air National Guard planes, aren’t flyable, or won’t remain so much longer; and (2) their avionics are too old to meet modern standards for flight in civil airspace.
The 1st problem is being addressed by major structural rework, inspections, and groundings. The 2nd problem was supposed to be addressed by the C-130 AMP program, begun in 2001 in order to improve aircraft fight-readiness, flight times, flexibility, and fuel use. Higher than expected costs have left the US military considering program cancellation, however, even as initial AMP contracts, and progress, continue to inch along…
- The C-130 AMP [updated]
- Contract & Key Events [NEW]
- Additional Readings
The C-130 AMP
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The C-130 AMP program was originally supposed to cost $7 million per aircraft. It would consolidate 13 Mission Design Series sets into one common core avionics suite with 5 mission families: Combat Delivery (C-130 AMP), and 4 unique Special Operations sets which would come under a separate contract.
The central element in both is Communication, Navigation, Surveillance/ Air Traffic Management (CNAS/ATM) compliance, which is required in order to fly in civil airspace without a waiver. It features digital displays, and the 737 commercial airliner’s proven flight management system. American KC-135 aerial tankers are receiving their GATM/ PACER CRAG modifications for similar reasons.
A successful AMP program offers a number of benefits: simplified training, better reliability, improved navigation and communications, easier insertion of new technologies, and the fuel and flexibility benefits of all-airspace access. Sweden has modified its Tp84/C-130 aircraft for exactly those reasons.
On the other hand, programs of this type can be difficult. They involve significant wiring replacement throughout the aircraft, as well as integration of new equipment with older airframes and their existing gear. The USA’s much larger C-5 Galaxy fleet has encountered serious cost overruns in its own AMP/RERP program, and the C-130 AMP was no different. By 2005, the 434-plane C-130 AMP had risen to $9 million per production aircraft. In 2007, the program was forced to declare a cost growth breach under Nunn-McCurdy laws.
The program was re-baselined to 268 planes, then cut to 221, and has remained on cost and schedule with respect to the changed baseline. In a tight budget environment, however, the USAF has become less supportive. The Milestone C approval required to enter Low-Rate Initial Production has been held up, and December 2009 comments by USAF Chief of Staff Gen. Norton Schwartz suggested that the USAF was looking to scrap the program in favor of less complete, and less costly, retrofits.
By that time, Boeing had 3 American AMP aircraft flying at Edwards AFB and Boeing facilities in San Antonio. Those 3 aircraft are currently slated for delivery to the future trainers at Little Rock AFB’s 314th Airlift Wing, in Arkansas, in early 2010. The firm also had its simulator declared ‘ready for use,’ and had 2 more assembled AMP kits awaiting Milestone C and LRIP approval to begin installation. The firm is still working to reduce overall costs toward the $7 million that was originally promised, however, and has been holding lean events and other workshops with key suppliers to that end.
At present, the C-130 AMP program is in a sort of limbo. Officially, it is still underway, and contracts exist to support continued work with the 3 existing test aircraft. Unofficially, the proposed 24 LRIP aircraft and 194 full rate production aircraft (now down to 221 total) await decisions by the USAF, the Pentagon, and Congress. Once those decisions are made, those LRIP and FRP projects may or may not exist.
Some reports talk of cancellation. Others discuss an expected program re-compete involving Boeing, C-130 builder Lockheed Martin, and BAE Systems. Other sources suggest the possibility that the program will receive approval and continue, possibly with reduced numbers of aircraft.
These conflicting accounts are unsurprising. Boeing continues to do its best to bridge the cost gap, and make C-130 AMP more and more of a flying reality, in order to make it harder to cancel. The USAF has little budget room, and seems to prefer a course of more limited upgrades, and/or shrinking the Air National Guard units into the future. Congress, who sees those ANG units as important sources of jobs-in-district, continues to resist any efforts to retire aircraft, even when the aircraft in question aren’t flyable. The Pentagon, led by Secretary of Defense Robert M. Gates, continues to look for programs to kill, and has faced down Congress on issues it deemed important.
Time will tell.
Contracts & Key Events
Unless otherwise specified, all contracts are awarded by Air Force Material Command’s 656th Aeronautical System Squadron at Wright-Patterson Air Force Base, OH, to Boeing in Wichita, KS. Note that Sweden’s C-130 AMP program falls under the same contract vehicle, but is covered in a separate article.
March 3/10: A $36.4 million contract for C-130 AMP low rate initial production (LRIP) Lot 1 modification. At this time, $8.2 million has been committed (FA8625-08-C-6481, PZ0010).
Boeing confirms that this award does not represent a Milestone C/ low rate production decision, which is scheduled for March 24/10. Instead, it finishes paying Boeing for development engineering, and for the 2 assembled AMP kits that await Milestone C approval to begin installation.
Jan 20/10: A $6.45 million contract to add the AN/AAR-47Av2 Missile Warning System to the C-130 Avionic Modernization Program. At this time the entire amount has been committed (F33657-01-C-0047, P00173).
Dec 14/09: A $44.1 million, fully-committed contract for the C-130 Avionic Modernization Program. All funds have been committed (F33657-01-C-0047, P00176).
Sept 14/09: Boeing announces that it has completed delivery of the U.S. Air Force’s first simulator for the C-130 Avionics Modernization Program (AMP) to Little Rock Air Force Base, AR. Boeing is scheduled to deliver a suite of trainers over the next several years to support the AMP training program at Little Rock, with each piece of training equipment offering a different level of instruction to train crew members.
At this juncture, Boeing says that 3 C-130 AMP aircraft have completed initial flight testing, and are undergoing additional evaluation flights with the Air Force before the AMP upgrade kits are installed on the fleet. Boeing release.
July 20/09: The C-130 AMP Weapon System Trainer (WST) passes government acceptance testing, and is declared “ready for use”. The full-motion, high fidelity simulator uses the same software as the C-130 AMP aircraft, which means that any future modifications can be made to the aircraft and the training devices at the same time.
Boeing partnered with veteran C-130 simulator firm CAE USA in Tampa, FL to integrate the new AMP cockpit into the simulator, and to perform similar modifications for other training devices in the suite. Source.
Sept 5/08: Boeing announces that it has completed AMP software development.
April 9/07: The C-130 AMP is listed in the Pentagon’s Selected Acquisition Reports, because of cost growth:
“Program costs increased $1,047.8 million (+21.2 percent) from $4,933.2 million to $5,981.0 million, due primarily to increases in labor rates and install hours (+$691.4 million) and increases in mission support equipment, simulator/trainers, depot costs, and other weapon system costs (data, peculiar support equipment, interim contractor support and training (+810.5 million). These increases were partially offset by a quantity decrease of 166 aircraft from 434 to 268 aircraft (-$560.6 million).”
Read “Pentagon Selected Acquisition Reports: April 2007” for fuller coverage.
Sept 19/06: Boeing flies the first C-130 AMP aircraft, designated H2, from Lackland Air Force Base in San Antonio, TX. Boeing inducted the aircraft in January 2005, after accepting it from Maxwell Air Force Base in Montgomery, AL. Boeing has also has inducted the second aircraft, H2.5, and has initiated the modification process. Boeing release [incl. embedded video].
July 20/06: Boeing in Wichita, KS receives a $56.4 million cost-plus-award fee contract modification for C-130 AMP program engineering change proposal 1004R1, training part II. The contract covers simulator modifications.
At this time, $6 million has been committed. Work will be complete in January 2010 (F33657-01-C-0047/P00114). See also Boeing release)
Feb 6/06: A $5.9 million cost-plus award fee contract modification. It covers Engineering Change Proposal (ECP) 00904R1 for the C-130 Avionics Modernization Program, which will allow AMC to update their pre-AMP Baseline Configuration data for C-130H (H1, H2, H2.5, H3), and LC-130H models. At this time, $3.2 million has been committed (F33657-01-C-0047/P00077).
Combat Talon II
April 30/04: A $58.8 million cost-plus award-fee contract modification covers Engineering Change Proposal 0303 – Special Operations Forces (SOF) acceleration. Boeing will deliver 2 avionics modernized MC-130 Combat Talon aircraft, no later than CY 2008.
Work will be performed in Long Beach, CA, and $14.4 million of the funds has been committed. This contract will end in December 2009 (F33657-01-C-0047, P00050).
Sept 22/03: A $183 million cost-plus award-fee contract modification, as part of a C-130 AMP rebaseline to recognize cost growth.
Boeing will perform this effort in Long Beach, CA, but no funds have been obligated. This is simply an umbrella contract that allows the USAF to place orders as needed; it will run until January 2010 (F33657-01-C-0047, P00043).
May 23/03: A $9.7 million cost-plus-award-fee contract modification to fund an engineering change proposal related to the C-130 AMP’s electrical power standardization requirements. Work will be performed in Long Beach, CA, and will be complete in September 2008. Air Force Material Command at Wright-Patterson Air Force Base, OH manages the contract (F33657-01-C-0047, P00030).
Aug 20/02: C-130 AMP added to the Pentagon’s selected acquisition reports for major programs, as a new entry. US DoD release/SAR.
July 30/01: Boeing subsidiary McDonnell Douglas Corp. in St. Louis, MO received a $1 billion firm-fixed-price contract to provide for aircraft modifications, integration support, and other services outside the scope of the avionics modernization program. It will include aircraft modifications, integration support and other services outside the scope of the AMP.
Funds on this contract will be obligated as individual delivery orders are issued during the course of the contract’s ordering period. The 1st delivery order will be for performance of a study of the C-130’s air data system; an expected follow-on contract for kit production installation is anticipated to follow this effort.
At this time $519,939 of the funds have been obligated. Solicitation began in April 2000, negotiations were completed February 2001, and work is to be complete in September 2013. Work will be performed in Long Beach, CA, and at other locations (F09603-01-D-0045, 0001).
July 30/01: McDonnell Douglas Corp. in St. Louis, MO received a $484.7 million cost-plus- award-fee contract to develop and build avionics modernization program kits for the C-130 aircraft. At this time $49.8 million of the funds have been awarded. Solicitation began April 2000, negotiations were completed in February 2001, and work is to be completed in September 2007.
McDonnell Douglas will perform this effort in Long Beach, CA, and at other locations (F33657-01-C-0047).
June 4/01: Boeing subsidiary McDonnell Douglas Corp., in St. Louis, MO is selected to receive a $485 million cost-plus-award fee and a $1billion indefinite-delivery/ indefinite-quantity contract related to the C-130 AMP, contingent upon approval by the Defense Acquisition Board.
Development of AMP kits is expected to extend through September 2007. Funds will be obligated as individual delivery orders are issued during the course of the contract’s ordering period, which will extend through September 2013. Air Force Materiel Command at Wright-Patterson Air Force Base, H will manage the contracts (F33657-01-C-0047 and F09603-01-D-0045). See also Boeing release.
Additional Readings
- Defense News (Sept 15/09) – Air Force Looks To Cancel C-130 AMP
- Boeing (June 4/01) – Boeing Selected to Modernize C-130. Modification kit installations were slated to begin in 2004 and continue through 2014, and reach a rate of about 70 per year at peak production.
