Supporting Britain’s Apaches: IOS and Beyond

WAH-64

AH Mk.1 on ship
(click to view full)

Jan 29/14: IOS, Period 2. AgustaWestland receives the 2nd 5-year period within Britain’s Apache Integrated Operational Support (IOS) contract, valued at about GBP 430 million from April 1/14 – March 31/19. The amount is very similar to the GBP 439 million paid for the 1st contract period (q.v. Oct 6/09), even as:

“The UK Apache AH Mk.1 fleet is fast approaching the 150,000 flying hour milestone and recently more than 40% of annual flying hours have been performed on operations in Afghanistan, providing protection for UK and allied forces.”

Core arrangements remain the same, with prime contractor AgustaWestland still teamed with Boeing, Lockheed Martin, Longbow International and Selex ES. They’ll continue to manage in-depth support at the fleet’s main base in Wattisham Airfield, the British Army’s main Apache AH Mk.1 operating base, and deliver the contracted number of flyable hours at Army Aviation Centre Middle Wallop’s School of Army Aviation. The Apache IOS programme office at AgustaWestland’s Yeovil facility will continue to manage the IOS contract. Sources: UK MoD, “Helicopter investment secures 1,000 UK jobs” | AgustaWestland, “AgustaWestland Awarded UK MoD Merlin Life Sustainment Programme and Apache Integrated Operational Support Contracts Valued at £760 Million”.

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AH Mk.1(click to view full) Britain flies a unique version of the AH-64D Apache Longbow, built under license from Boeing by AgustaWestland. Their AH Mk.1s have put their more powerful Rolls Royce/ Turbomeca RTM322 engines to good use in Afghanistan’s lift-killing “hot and high” flying conditions, allowing them to retain key equipment that other countries […]
WAH-64/AH Mk.1 at Air Show, 2008

AH Mk.1
(click to view full)

Britain flies a unique version of the AH-64D Apache Longbow, built under license from Boeing by AgustaWestland. Their AH Mk.1s have put their more powerful Rolls Royce/ Turbomeca RTM322 engines to good use in Afghanistan’s lift-killing “hot and high” flying conditions, allowing them to retain key equipment that other countries had to strip out as a weight-saving measure.

In October 2009, AgustaWestland signed the Apache Integrated Operational Support (IOS) through-life contract with the UK Ministry of Defence. The contract fits within their March 2005 Partnering and Business Transformation Agreement, and will result in a shift of British military personnel toward the front lines…

The Apache IOS

WAH-64

AH Mk.1 on ship
(click to view full)

The Apache IOS contract commenced in October 2009, and was fully operational as of April 1/10. It’s a “through-life support” contract, which means it’s expected to continue adding 5-year negotiated contracts until the fleet is taken out of service in about 22 years.

Like the Sea King (SKIOS) and AH101 Merlin support contracts negotiated under the firm’s Partnering and Business Transformation Agreement, Apache IOS is a performance-based logistics arrangement, whereby the firm has financial incentives to improve availability and throughput, whilst seeking continuous improvement to reduce through-life costs. The contract is expected to reduce through-life costs by more than GBP 50 million in the initial period to 2014, and more over the full life of the contract to 2031. At regular intervals there will be price and value for money reviews, in order to ensure that performance targets are being met.

In order to execute the Apache IOS contract, AgustaWestland has formed an industrial alliance with Boeing, Lockheed Martin, and the Lockheed Martin/ Northrop Grumman joint venture Longbow International. The alliance will deliver logistical, engineering, depth maintenance and technical support for the UK MoD’s fleet of 67 Apache AH Mk1s.

Wattisham DSU

Service at Wattisham
(click to view full)

At Wattisham, the AW team will continue to manage the Depth Support Unit and the associated workshops, ensuring that the throughput of the facility matches the requirements of the British Army. Wattisham was run by military technicians until mid-2006, but is now run by 180 AgustaWestland engineers who service each of the UK’s 67 Apache aircraft after each one has completed 600 flying hours.

At Middle Wallop, the team will continue to be responsible for the provision of Apache aircraft on the flight line at the School of Army Aviation, delivering the required number of flight hours to match the Army’s training requirements.

At its main Yeovil facility, the team maintains the trials aircraft.

In order to supply these services, AgustaWestland is also responsible for delivering the required spares, repair and overhaul service and provision of logistics support services right up to the front line. Other elements of the IOS contract include modification management as the helicopters are updated, and enhanced technical support services including aircraft safety management, mission avionics systems rig support, and training course material.

Colonel David Turner, the Apache Force Commander, adds that:

“I’ve got more aircraft now available for training than I’ve ever had and that’s all because the military guys from here have gone forward. I can now do far more here at Wattisham than I’ve ever been able to do and give the pilots in the UK the training hours they need to prepare for operations.”

Contracts and Key Events

2011 – 2014

Engine support contract; 2nd IOS period contract.

[youtube:v=i8McNv9nIuI]

Afghan success
click for video

Jan 29/14: IOS, Period 2. AgustaWestland receives the 2nd 5-year period within Britain’s Apache Integrated Operational Support (IOS) contract, valued at about GBP 430 million from April 1/14 – March 31/19. The amount is very similar to the GBP 439 million paid for the 1st contract period (q.v. Oct 6/09), even as:

“The UK Apache AH Mk.1 fleet is fast approaching the 150,000 flying hour milestone and recently more than 40% of annual flying hours have been performed on operations in Afghanistan, providing protection for UK and allied forces.”

Core arrangements remain the same, with prime contractor AgustaWestland still teamed with Boeing, Lockheed Martin, Longbow International and Selex ES. They’ll continue to manage in-depth support at the fleet’s main base in Wattisham Airfield, the British Army’s main Apache AH Mk.1 operating base, and deliver the contracted number of flyable hours at Army Aviation Centre Middle Wallop’s School of Army Aviation. The Apache IOS programme office at AgustaWestland’s Yeovil facility will continue to manage the IOS contract. Sources: UK MoD, “Helicopter investment secures 1,000 UK jobs” | AgustaWestland, “AgustaWestland Awarded UK MoD Merlin Life Sustainment Programme and Apache Integrated Operational Support Contracts Valued at £760 Million”.

2nd IOS

Sept 10/13: Engines. The UK MoD announces a 6-year, GBP 367 million (about $570 million) contract with Rolls Royce to provide engine maintenance for the RTM322 engines that equip Britain’s 66 AH-64 Apache (2 engines each) and 57 AW101 Merlin (3 engines each) helicopters. Rolls Royce doesn’t actually own the engine any more (q.v. Sept 2/13), so the British firm will probably manage France’s Turbomeca, who will in turn use some transferred Rolls Royce employees to perform support.

Work will take place at RAF Benson (Merlin), RNAS Culdrose (Merlin), Army Air Corps airfields at Wattisham and Middle Wallop (Apache), and at Rolls-Royce and Turbomeca sites in the UK and France.

This is a separate arrangement from AgustaWestland’s IOS and Merlin support contracts. Meanwhile, the ministry is touting imagined savings of more than GBP 300 million compared to previous arrangements – which is to say, at least 45% savings over the 6 years. Time will tell. Sources: UK MoD, Sept 10/13 release.

Engine support

Sept 2/13: Engines. Rolls-Royce announces the finalization of its GBP 293 million (about $454 million) sale of its RTM322 helicopter engine share to its partner, Safran’s Turbomeca (q.v. April 23/13). Turbomeca now assumes full responsibility for managing the design, production and support of the RTM322 engine, though there will be a transition period wherein Rolls-Royce will provide full assistance to maintain customer support. Sources: Rolls Royce & Safran’s Sept 2/13 releases.

April 23/13: Engines. Safran will buy out Rolls-Royce’s 50% share in their joint RTM322 helicopter engine program, which equips British AH Mk.1 Apaches, some NH90s, and the AW101. Safran will take over responsibility for all customer support, and will also receive all intellectual property rights.

In the near term, Rolls-Royce’s revenue share from the RTM322 amounts to about EUR 85 million per year, most of which comes from support. Safran will use the buyout to streamline the processes involved, as Rolls Royce progressively hands over all relevant manufacturing and service work.

Turbomeca’s strategic goal appears to involve using RTM322 technology as a platform to go from its current 2,100-2,600 shp to 3,000 shp and beyond. Turbomeca doesn’t have an offering in that class, and “In the next 15 years, Turbomeca aims to supply about 3,500 engines, on existing military platforms as well as future civilian and military platforms in the 8-13 tons range…” Sources: Safran Group, April 23/13 release.

Safran buys RTM322 engine

2006 – 2010

IOS contract signed, goes into effect early.

AIR AH-64D Apache UK Frontal w Royal Marines

AH Mk.1 w. Marines
(click to view full)

April 1/10: IOS goes live. AgustaWestland announces that the Apache Integrated Operational Support (IOS) contract is now fully operational, just 6 months after contract award and a whole 12 months earlier than originally planned. AgustaWestland Managing Director Graham Cole congratulates the UK MoD’s Apache Project Team which is collocated at AgustaWestland’s Yeovil facility with AgustaWestland’s IOS team; and industrial partners Boeing, Lockheed Martin, and Longbow International.

During this transition period AgustaWestland worked in partnership with the UK MoD’s Apache Project Team to develop the processes for the IOS service, recruit and train staff, stand up computer software to support performance management, and establish a forward support team at Wattisham Airfield, the Apache AH Mk.1’s Main Operating Base and Main Support Base.

Feb 22/10: Sub-contractors. The Lockheed Martin/ Northrop Grumman joint venture Longbow LLC announces an $86 million sub-contract from AgustaWestland to support the Longbow fire Control Radar systems on the United Kingdom Apache AH Mk-1 aircraft. The contract is a component of the IOS arrangement between AgustaWestland to the Ministry of Defence.

Unlike American or Dutch Apaches, British helicopters mount and use their radars in Afghanistan for ground surveillance and aerial situation awareness, thanks to the extra thrust provided by their RTM322 engines. Lockheed Martin | See also DID’s previous “Afghan Field Report: British WAH-64Ds“.

The 4-year contract includes engineering services, integrated logistics and an in-country repair capability. Support services will continue through March 2014, and will be performed at Wattisham Airfield in the U.K.; Lockheed Martin facilities in Ocala and Orlando, FL; and Northrop Grumman facilities in Baltimore, MD.

Oct 6/09: AgustaWestland and the UK Ministry of Defence sign a GBP 439 million (currently $695 million) Apache IOS contract for through-life support, with an initial period that will last to 2014. Minister for Defence Equipment and Support, Quentin Davies announces the award at Wattisham Airfield in Suffolk, where 3 and 4 Regiment Army Air Corps, who operate the helicopter in Afghanistan on a rotational basis, are based. Quentin Davies:

“I can say without any exaggeration at all that there’s not been a battle we’ve fought in Afghanistan in which Apache hasn’t played an absolutely decisive role and every day the Apache fleet are saving the lives of our infantry soldiers in Afghanistan and of course they are taking out an enormous number of the enemy.”

The UK MoD release added an operational dimension to the IOS contract:

“The contract, which is similar to recent ones awarded for the maintenance of Merlin, Sea King, and Chinook helicopters, means that, while industry maintains the aircraft at home, the British military’s Apache engineers are freed up to deploy to Afghanistan where they can keep the aircraft in the air, supporting operations almost around the clock… AgustaWestland have security and know where the cash flow is coming from and what is required of them for the next few years, while for us it means an awful lot of the risks are taken off our shoulders. And as far as our operational training squadron is concerned it is really a complete availability arrangement. We don’t even bother to think about the machines, we just turn up and fly them, and AgustaWestland have got them all ready for us when we need them.”

Colonel David Turner, the Apache Force Commander, explained the shift in more detail:

“In the front line we are doing servicing at more frequent periods. We do servicing at 50 hours and 100 hours. We don’t take it apart completely but we open the panels, we check the engines, gear box, rotor blades, we check all the systems. It all goes from daily flight servicing. Every aircraft is checked on a daily basis; you wouldn’t fly it until it had been checked by a technician, so there’s a huge burden of maintenance effort still required on the front line and I need the soldiers from here to move to that effort and that’s happening.

To allow AgustaWestland to take over the DSU and now to take over the provisioning of all spares and equipment allows us to focus again more tightly on the operation.”

See: UK MoD | British Army | AgustaWestland release.

IOS contract

Additional Readings

* British Army – Apache

* Airforce Technology – AH-64A/D Apache Attack Helicopter, USA

* AgustaWestland – Apache AH Mk.1

* Boeing – AH-64 Apache

* DID – Afghan Field Report: British WAH-64Ds

* Safran Group’s Turbomeca – RTM322

* Rolls Royce, via WayBack – RTM322

* Lockheed Martin – LONGBOW FCR and LONGBOW HELLFIRE Missile

* Northrop Grumman – AN/APG-78 Longbow Fire Control Radar

Front Line Reports

* DID (Nov 26/07) – Afghan Field Report: British WAH-64Ds

* DID (Jan 31/07) – WAH-64 Combat-Certifies New Armament: Royal Marines. When it’s a rescue, you do what you have to do.

Related Support Contracts

* DID – $2 Bn for British EH101 Merlin Multi-Role Upgrades. Also includes coverage of the IMOS long-term support contract.

* DID – SKIOS for Sea Kings: Availability Contract Covers Through-Life Maintenance

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