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.

MQ-8 Fire Scout VTUAV Program: By Land or By Sea

A helicopter UAV is very handy for naval ships, and for armies who can’t always depend on runways. The USA’s RQ/MQ-8 Fire Scout Unmanned Aerial Vehicle has blazed a trail of firsts in this area, but its history is best described as “colorful.” The program was begun by the US Navy, canceled, adopted by the US Army, revived by the Navy, then canceled by the Army. Leaving it back in the hands of the US Navy. Though the Army is thinking about joining again, and the base platform is changing.

The question is, can the MQ-8 leverage its size, first-mover contract opportunity, and “good enough” performance into a secure future with the US Navy – and beyond? DID describes these new VTUAV platforms, clarifies the program’s structure and colorful history, lists all related contracts and events, and offers related research materials.

The C-27J Spartan Joint Cargo Aircraft

C-27J Spartan

When the WALRUS super-heavy cargo airship was canceled, combat commanders complained that front-line airfields were often too short for the C-130 Hercules that make up the USAF’s tactical transport fleet. Delays in buying a small cargo aircraft to fill that role were making that problem worse. Starved of useful help due to USAF-sponsored delays, and the lack of appropriate aircraft in the USAF, the Army carried on with its aging C-23 Sherpas, and repurposed aircraft like the unprotected C-12 Hurons, in order to ferry troops, supplies, and/or very small vehicles within its theaters of operations.

The Joint Cargo Aircraft (JCA) could have been worth up to $6 billion before all was said and done, and the finalists were a familiar duo. After EADS-CASA’s CN-235 and a shortened version of Lockheed Martin’s C-130J were disqualified for failing to meet requirements, JCA became yet another international competition between EADS-CASA’s C-295M & Alenia’s C-27J. The C-27J team eventually won the delayed decision in June 2007, and prevailed in the subsequent contract protests from their rivals. What remained unclear was exactly what they had won. The joint-service decision and contract announcement didn’t end the inter-service and Congressional politicking, and the contractor side was equally fractious. This FOCUS article covers the JCA competition, and subsequent developments – including the Pentagon’s 2012 push to end the program, and sell its planes.

Halliburton/KBR Contracts Under Fire from Congress, DCAA

Headed for Iraq

Pentagon auditors are questioning more than $108 million in costs claimed by Halliburton subsidiary Kellogg Brown Root (KBR) under its $875 million “Task Order 5” contract to provide fuel in Iraq in 2003 and 2004. The Defense Contract Audit Agency (DCAA) also faulted KBR for the quality of the records it delivered to the investigation, citing discrepancies between reported actual costs and accounting records. Halliburton is asserting that no wrongdoing was involved, claiming that the costs stemmed directly from the strictures it was working under and the challenges of getting shipments into a war zone without fail. Company officials also point out the firm’s estimating and purchasing systems have recently received a nod of approval from the Pentagon’s Defense Contract Management Agency (DCMA).

A Pentagon spokeswoman said the audit was conducted to determine whether “fair and reasonable” prices were charged, and that DCAA (Defense Contract Audit Agency) auditors believe that KBR paid an unreasonable price for the fuel in some cases. “The major issues in this audit report have not been resolved,” she said, without providing details. Halliburton spokeswoman Wendy Hall said the company was cooperating fully with auditors, and would work with the Pentagon to resolve the issue. Army Corps spokeswoman Carol Sanders said the Corps was looking at a series of audits before starting final negotiations with KBR over final prices and potential payment adjustments. Meanwhile, Congressional pressure shows no signs of letting up.

Space Based Space Surveillance: Follow On Needed

SBSS Constellation
(click to view larger)

In January 2001, a commission headed by then US Defense Secretary-designate Donald Rumsfeld warned about a possible “space Pearl Harbor” in which a potential enemy would launch a surprise attack against US-based military space assets, disabling them. These assets include communications satellites and the GPS system, which is crucial for precision attack missiles and a host of military systems.

“The US is more dependent on space than any other nation. Yet the threat to the US and its allies in and from space does not command the attention it merits,” the commission warned.

One of the systems that grew out of the commission’s report was the Space Based Space Surveillance (SBSS) project, which is developing a constellation of satellites to provide the US military with space situational awareness using visible sensors. After a slow start, SBSS Block 10 reached a significant milestone in August 2012 with its Initial Operational Capability, followed by full operational capability less than a year later. But lack of funding casts as shadow on whether this capability will be maintained beyond 2017. By 2014/15 the Air Force worked on a stopgap project as well as an effort to obtain proper funding for follow on satellites to be launched at the start of next decade.

‘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.

The US Navy’s Mobile Landing Platform Ships (MLP)

MLP concept

The Montford Point Class Mobile Landing Platform is intended to be a new class and type of auxiliary support ship, as part of the US Navy’s Maritime Prepositioning Force of the Future (MPF-F) program. They’re intended to serve as a transfer station or floating pier at sea, improving the U.S. military’s ability to deliver equipment and cargo from ship to shore when friendly bases are denied, or simply don’t exist. That’s very useful in disaster situations, and equally useful for supporting US Marines once they’re ashore.

It’s an interesting and unusual concept, one closely connected to the au courant concept of “seabasing”. The final MLP design changed substantially from the initial requirements, which lowered the platform’s cost along with its capabilities. Time will tell if the initial choices and tradeoffs were well-conceived or not. With contracts to build the ships underway, the remaining question is whether the ships can be built to meet the more limited promises that are being made now.

Pentagon Commission: $25B/Year Savings to Be Had

The Pentagon’s Defense Business Bureau, an advisory group designed to give private sector expertise to senior leaders, announced its global analysis of DoD practices found potential savings of about $25 billion per year, to be squeezed mostly out of logistics, procurement, property management, HR, and healthcare, in that order.

The savings presume a capacity for the military to create ongoing and cumulative productivity increases – as does the private sector, generally. While the rather top-down analysis is likely to seem far fetched to military professionals, it does starkly compare behaviors in the private sector that differ, and that have resulted in vast, cumulative efficiencies.

When it comes to specifics, speaks generally about four areas of recommendations: renegotiating contracts; cutting the workforce; IT modernization and the catch-all business process re-engineering.

DoD contractors will be interested to see the nature of the target painted on their piece of budget pie. The DDB hopes to realize $9 to $18 billion in savings per year by saving 10-25 percent of contract spending. How they hope to do that? “More rigorous” negotiations; contract aggregation for economies of scale; a push for greater productivity in labor contracts; and the elimination of gold plating requirements.

Deputy Defense Secretary Bob Work charged the DDB with producing the report back in October in an effort to gauge the scope of changes that would help modernize the whole of the defense enterprise.

The report doesn’t break too much ground in terms of tactics recommended, as previous reports have largely enumerated the various savings the DDB hopes the military will recognize.

You Can Track Your F-35s, At ALIS’ Maintenance Hub

Keeping track of…

For the last 50 years, newer fighters have been sold as requiring less maintenance than their predecessors, due to technical advances. As people like Chuck Spinney and the Congressional Research Service have documented, the reverse has been true.

That decades-long defense death spiral has finally reached a point where it’s prompting musings about the collapse of American TacAir, and European countries with their small and dwindling defense budgets are also strongly affected. If the F-35 Lightning II Joint Strike Fighter was to have any hope of becoming a commercial and operational success, it needed to change that operating cost dynamic. To do that, Lockheed Martin, BAE, and the international JSF team have turned to embedded HUMS (Health & Usage Monitoring System) diagnostics. Even that probably won’t be enough, absent integration with the Autonomic Logistics Information System (ALIS) – which an IEEE paper has described as “perhaps the most advanced and comprehensive set of diagnostic, prognostic, and health management capabilities yet to be applied to an aviation platform.”

The US Military’s International Airlift Contracts

Latest updates[?]: FY 2015 contracts - much smaller overall, and the core structure has changed.

Every year, US Air Mobility Command at Scott Air Force Base, IL issued a slew of indefinite-delivery/ indefinite-quantity, firm-fixed-price contracts for “International Airlift Services” to various commercial carriers. The way these awards work is that each contractor submits a bid, and the US military allocates award amounts according to each bid’s scope and competitiveness.

Stand-alone articles have covered FY 2006 ($2.29 billion), FY 2007 ($2.32 billion), and FY 2008 (over $3 billion) orders, which saw a steady ramp-up in both absolute dollar amounts, and participating firms. Orders remained high through 2010, which was a boon to a recession-ravaged air transport industry, but the ebbing of hostilities has seen FY 2011 – 2012 contract totals drop by over a third.