Super Hornet Fighter Family MYP-III: 2010-2018 Contracts

The US Navy flies the F/A-18 E/F Super Hornet fighters, and has begun operating the EA-18G Growler electronic warfare & strike aircraft. Many of these buys have been managed out of common multi-year procurement (MYP) contracts, which aim to reduce overall costs by offering longer-term production commitments, so contractors can negotiate better deals with their suppliers.

The MYP-II contract ran from 2005-2009, and was not renewed because the Pentagon intended to focus on the F-35 fighter program. When it became clear that the F-35 program was going to be late, and had serious program and budgetary issues, pressure built to abandon year-by-year contracting, and negotiate another multi-year deal for the current Super Hornet family. That deal is now final. This entry covers the program as a whole, with a focus on 2010-2015 Super Hornet family purchases. It has been updated to include all announced contracts and events connected with MYP-III, including engines and other separate “government-furnished equipment” that figures prominently in the final price.

Airbus’ A400M Aerial Transport: Delays, Development, and Deployment

Airbus’ A400M is a EUR 20+ billion program that aims to repeat Airbus’ civilian successes in the full size military transport market. A series of smart design decisions were made around capacity (35-37 tonnes/ 38-40 US tons, large enough for survivable armored vehicles), extensive use of modern materials, multi-role capability as a refueling tanker, and a multinational industrial program; all of which leave the aircraft well positioned to take overall market share from Lockheed Martin’s C-130 Hercules. If the USA’s C-17 is allowed to go out of production, the A400M would also have a strong position in the strategic transport market, with only Russian AN-70, IL-76 and AN-124 aircraft as competition.

Airbus’ biggest program issue, by far, has been funding for a project that is more than EUR 7 billion over budget. The next biggest issue is timing, as a combination of A400M delays and Lockheed’s strong push for its C-130J Super Hercules narrow the field for future exports. This DID Spotlight article covers the latest developments, as the A400M Atlas moves into the delivery phase. Will Airbus’ 3rd big issue become its own customers?

Britain’s A330 Voyager FSTA: An Aerial Tanker Program – With a Difference

Back in 2005, Great Britain was considering a public-private partnership to buy, equip, and operate the RAF’s future aerial tanker fleet. The RAF would fly the 14 Airbus A330-MRTT aircraft on operational missions, and receive absolute preferential access to the planes. A private contractor would handle maintenance, receive payment from the RAF on a per-use basis – and operate them as passenger charter or transport aircraft when the RAF didn’t need them.

The deal became politically controversial, and negotiations on the 27-year, multi-billion pound deal charted new territory for both the government, and for private industry. Which may help to explain why a contract to move ahead on a “Private Financing Initiative” basis had yet to be issued, and procurement had yet to begin, over 7 years after the program began. In March 2008, however, Britain issued the world’s largest-ever Defence Private Finance Initiative (PFI) contract. This FOCUS Article describes the current British fleet, the aircraft they chose to replace them, how the new fleet will compare, the innovative deal structure they’ve chosen, and ongoing FSTA developments.

The F-22 Raptor: Program & Events

The 5th-generation F-22A Raptor fighter program has been the subject of fierce controversy, with advocates and detractors aplenty. On the one hand, the aircraft offers full stealth, revolutionary radar and sensor capabilities, dual air-air and air-ground SEAD (Suppression of Enemy Air Defenses) excellence, the ability to cruise above Mach 1 without afterburners, thrust-vectoring super-maneuverability… and a ridiculously lopsided kill record in exercises against the best American fighters. On the other hand, critics charged that it was too expensive, too limited, and cripples the USAF’s overall force structure.

Meanwhile, close American allies like Australia, Japan and Israel, and other allies like Korea, were pressing the USA to abandon its “no export” policy. Most already fly F-15s, but several were interested in an export version of the F-22 in order to help them deal with advanced – and advancing – Russian-designed aircraft, air-to-air missiles, and surface-to-air missile systems. That would have broadened the F-22 fleet in several important ways, but the US political system would not or could not respond.

This DID FOCUS Article tracks continuing maintenance and fleet upgrade programs, contracts, and timely news. A separate public-access feature offers a profile of the USAF’s most advanced fighter, and covers both sides of the F-22 Raptor program’s controversies.

Scorpene’s Sting: Malaysia’s Bribery & Murder Scandal

The Franco-Spanish Scorpene diesel-electric attack submarine competes on the global market against an array of competitors, especially ThyssenKrupp HDW’s U209/212/214 family. In June 2002, the Malaysian government signed a EUR 1 billion contract with Armaris (now DCNS) and Spanish naval shipbuilder Izar (now Navantia) for 2 SSK Scorpenes and associated support and training. Both submarines have been delivered to Malaysia, though there have been some technical problems. Which pale in comparison to the deal’s other problems.

Within Malaysia, the sale has been compromised by an ongoing trial and set of legal actions around the public kidnapping and private execution of Mongolian modeling student, translator, and paramour Altantuya Shaariibuu. Full and impartial accountability for public figures is not a prominent feature of Malaysian justice, but French Journalist Arnaud Dubus added to the pressure with a March 5/09 report in France’s Liberation, “Un cadavre très dérangeant: L’étrange affaire du meurtre d’une interprète mongole qui gène le pouvoir en Malaisie” (Page 30-31). It named very prominent names, offered details, and revealed the contents of documents that Malaysian courts had refused to admit. A subsequent bribery investigation by French authorities has led to the emergence of even more documents, and the scandal is becoming a significant presence in Malaysian politics.

Aerovironment’s Global Observer: Flying High, Again

ISR CONOPS(CONcept of OPerationS)

The late Dr. Paul McReady’s Aerovironment, Inc. has achieved just renown for the success of its small UAVs like the Army’s RQ-11 Raven and the US Marines’ RQ-14 Dragon Eye/Swift. Outside the military sphere, however, it is best known for civil successes like the human-powered Gossamer Condor, the giant, solar-powered Pathfinder and Helios aircraft, and the flying Quetzalcoatlus northropi ornithopter on display in the Smithsonian museum.

Those traditions have fused in a major Advanced Concept/Joint Capability Technology Demonstration (ACTD/JCTD) contract for a UAV that runs on hydrogen fuel cells, and can cruise at 55,000-65,000 feet for up to 7 days at a time, while carrying a 1,000 pound payload. Meet Aerovironment’s Global Observer, which promises formidable advantages in roles as diverse as communications relay, persistent ISR (intelligence, surveillance & reconnaissance), maritime patrol, and even storm tracking and weather applications:

• The Global Observer JCTD
  
• Contracts & Key Events [updated]
  
• Additional Readings
  

‘Fat Leonard’ Procurement Scandal Takes Down Three Rear Admirals

The Secretary of the Navy
issued letters of censure to three rear admirals – all of whom are retiring – for involvement in the “Fat Leonard” scandal that involved officers steering ships to particular port facilities in return for gifts and sexual favors. A review concluded that the three admirals improperly accepted gifts between 2006 and 2007 and that their improper familiarity with Leonard “Fat Leonard” Francis “cultivated an unacceptable ethical climate within the respective commands.”

Rear Admirals Michael Miller, then a commander serving on the USS Ronald Reagan; Terry Kraft, CO of the same carrier; and David Pimpo, the Reagan’s supply officer, have all asked to retire. The Navy’s issuance of reprimands does not preclude criminal charges. Secretary Mabus promised to set up an ethical disciplinary process to follow up with Navy officers who are not charged criminally, or whose ethical lapses aren’t addressed directly in criminal proceedings. Navy officials previously indicated that the scandal will grow wider as leads are followed up.

Francis, proprietor of a Malaysian naval resupply and refit firm named Glenn Defense Marine Asia Ltd. pleaded guilty to various corruption charges, having been successfully lured to the U.S. in a San Diego hotel sting, and after finally losing the services of a bribed senior official in the Naval Criminal Investigative Service, who had previously been tipping him off. Francis’s firm aggressively sought Navy business, bribed officials for secret ship movement information and for favorable contracting decisions and overcharged for services. Allegations have been made as well that Francis was effective in changing the schedules and destinations for certain Navy deployments.

Francis has been cooperating in recent weeks, according to the Washington Post.

Francis has agreed to pay back $35 million in money made through the scheme, and awaits sentencing of up to 25 years in prison.

Navy captain Daniel Dusek pleaded guilty to giving Francis secret information in exchange for money, prostitution services and travel services around the Pacific. Dusek was relieved of his relatively new command of the Bonhomme Richard in 2013 when he was first suspected of involvement. Dusek is one of five navy officials to plead guilty, and the most senior so far.

He has admitted to, in at least one instance, to change the movements of a carrier and strike group to ensure that they stopped at Francis’s Port Klang facility in Malaysia.

A couple months before Dusek’s arrest, a former commander of the USS Mustin, Michael Vannak Khem Misiewicz, was arrested for bribery, about the same time that Naval Criminal Investigative Service supervisory agent John Bertrand Beliveau II was arrested.

Misiewicz allegedly attempted reschedule port visits to include Francis’s firms facilities, adopting routes that included Sepangar, Malaysia, and Laem Chebang, Thailand.

Already, several mid-level officers have been found guilty, including one who pleaded guilty only last week.

In documents presented to the court using Francis’s own words, the scheme was designed to “drive the big decks into our fat revenue” facilities.

AGM-65E Laser-Guided Maverick Missiles: Back in Production

AGM-65E onto F/A-18

Raytheon is restarting its production line to produce AGM-65E2/L laser-guided Maverick missiles, and will also upgrade existing stocks, in response to demand from the front lines. The AGM-65 rose to its greatest prominence during Desert Storm, when many of TV’s missile-eye views of air strikes came from Mavericks. In truth, it was produced in 3 versions: TV-guided (AGM-65A/B/D/H), Imaging Infrared (AGM-65G) guided, and laser-guided (AGM-65E). Production continues for the TV and IIR variants, but the Marines’ AGM-65E laser-guided version had gone out of production.

The AGM-65 Maverick was the first general purpose fire-and-forget tactical air-to-ground missile in service with the U.S. Air Force. The JAGM program initially proposed to replace it, but program changes ensured that Maverick remains the default American option for jet fighter precision-guided missile strikes out to around 20+ km / 12 nmi. While IIR and TV guidance allow precision attacks, laser guidance generally offers the best accuracy of the 3 against ground targets. Likewise, there are circumstances in which a fully-powered missile is a better choice than an unpowered gliding bomb. The following story from Iraq illustrates…

Rapid Fire Dec. 5, 2012: Coming Changes at the Top in French Defense Industry

• Charles Edelstenne plans to retire from Dassault Aviation next month as he is reaching the statutory age limit. His successor as CEO should be known within days, though it is not clear whether that person will come from within or outside of the company. L’Usine Nouvelle [in French].

• During a hearing at the French Assemblée Nationale’s defense committee, Edelstenne mentioned a potential change in corporate governance at Thales, where CEO Luc Vigneron is in a protracted spat with unions. Dassault Aviation is the second largest shareholder in Thales, just behind the French state. Reuters | L’Usine Nouvelle [both in French].

• Since EADS confirmed on Monday that talks in the media of a new shareholder structure are founded, reports of what that would look like have kept coming. Bloomberg | Reuters.

Rapid Fire September 11, 2012: Corrosion Mitigation

• With the US Congress back from recess this week, Senator John McCain [R-AZ] released selected quotes from the CEOs of the major primes pointing to the uncertainty and disruption associated with sequestration. Meanwhile the OMB is past its deadline on the report Congress mandated them to produce on the effect of sequestration on readiness.

• The Pentagon told Congress back in May that corrosion costs the Department almost $21B a year, according to an assessment of that report by the GAO that otherwise finds it lacking. (The DoD FY13 corrosion report itself does not seem to be publicly available). The Senate Armed Services Committee voiced similar concerns earlier this year in its report 112-173.

• The Partnership for Public Service nonprofit and the Washington Post published a fawning profile of Elliott Branch, the US Navy’s Deputy Assistant Secretary for acquisition. Pointing to LCS as a program where the Navy excelled in finding savings is, uh, bold.