V-22 Osprey: The Multi-Year Buys, 2008-2017

In March 2008, the Bell Boeing Joint Project Office in Amarillo, TX received a $10.4 billion modification that converted the previous N00019-07-C-0001 advance acquisition contract to a fixed-price-incentive-fee, multi-year contract. The new contract rose to $10.92 billion, and was used to buy 143 MV-22 (for USMC) and 31 CV-22 (Air Force Special Operations) Osprey aircraft, plus associated manufacturing tooling to move the aircraft into full production. A follow-on MYP-II contract covered another 99 Ospreys (92 MV-22, 7 CV-22) for $6.524 billion. Totals: $17.444 billion for 235 MV-22s and 38 CV-22s, an average of $63.9 million each.

The V-22 tilt-rotor program has been beset by controversy throughout its 20-year development period. Despite these issues, and the emergence of competitive but more conventional compound helicopter technologies like Piasecki’s X-49 Speedhawk and Sikorsky’s X2, the V-22 program continues to move forward. This DID Spotlight article looks at the V-22’s multi-year purchase contract from 2008-12 and 2013-2017, plus associated contracts for key V-22 systems, program developments, and research sources.

AW159 Wildcat: The Future Lynx Helicopter Program

In 2006, Finmeccanica subsidiary AgustaWestland received a GBP 1 billion (about $1.9 billion at 02/07 rates) contract from the UK Ministry of Defence (MoD) for 70 Future Lynx helicopters, and began a new chapter in a long-running success story. The Lynx is an extremely fast helicopter that entered service in the 1970s, and quickly carved out a niche for itself in the global land and naval markets. The base design has evolved into a number of upgrades and versions, which have been been widely exported around the world.

In Britain, Lynx helicopters are used in a number of British Army (AH7 & AH9) and Fleet Air Arm (Mk 8) roles: reconnaissance, attack, casualty evacuation & troop transport, ferrying supplies, anti-submarine operations, and even command post functions. The Future Lynx program reflects that, and British government and industry are both hoping that its versatility will help it keep or improve the Lynx family’s global market share. This is DID’s FOCUS Article for the AW159 Lynx Wildcat Program, describing its technical and industrial features, schedules, related contracts, and exports.

Eurofighter’s Future: Tranche 3, and Beyond

The multi-national Eurofighter Typhoon has been described as the aerodynamic apotheosis of lessons learned from the twin engine “teen series” fighters that began with the F-14 and F-15, continued with the emergence of the F/A-18 Hornet, and extended through to the most recent F/A-18 Super Hornet variants. Aerodynamically, it’s a half generation ahead of all of these examples, and planned evolutions will place the Eurofighter near or beyond parity in electronic systems and weapons.

The 1998 production agreement among its 4 member countries involved 620 aircraft, built with progressively improved capabilities over 3 contract “tranches”. By the end of Tranche 2, however, welfare state programs and debt burdens had made it difficult to afford the 236 fighters remaining in the 4-nation Eurofighter agreement. A 2009 compromise was found in the EUR 9 billion “Tranche 3A” buy, and the program has renewed its efforts to secure serious export sales. Their success will affect the platform’s production line in the near term, and its modernization plans beyond that.

The C-130J: New Hercules & Old Bottlenecks

The C-130 Hercules remains one of the longest-running aerospace manufacturing programs of all time. Since 1956, over 40 models and variants have served as the tactical airlift backbone for over 50 nations. The C-130J looks similar, but the number of changes almost makes it a new aircraft. Those changes also created issues; the program has been the focus of a great deal of controversy in America – and even of a full program restructuring in 2006. Some early concerns from critics were put to rest when the C-130J demonstrated in-theater performance on the front lines that was a major improvement over its C-130E/H predecessors. A valid follow-on question might be: does it break the bottleneck limitations that have hobbled a number of multi-billion dollar US Army vehicle development programs?

C-130J customers now include Australia, Britain, Canada, Denmark, India, Israel, Iraq, Italy, Kuwait, Norway, Oman, Qatar, Saudi Arabia, South Korea, Tunisia, and the United States. American C-130J purchases are taking place under both annual budgets and supplemental wartime funding, in order to replace tactical transport and special forces fleets that are flying old aircraft and in dire need of major repairs. This DID FOCUS Article describes the C-130J, examines the bottleneck issue, covers global developments for the C-130J program, and looks at present and emerging competitors.

Eurofighter’s Rough Ride in Austria Continues

In 2003, Austria signed a EUR 2 billion contract to receive 18 EADS Eurofighters plus required support (just over $2.5 billion, or about $140 million per plane). The aircraft were already under construction in Germany when the 2006 election results forced the leftist SPO party, whose campaign promises included canceling the fighter deal, into the Austrian government coalition.

That shift led to a fraught series of negotiations within Austria, and then with EADS. The 2 sides played a game of billion-dollar chicken, leading to a settlement in 2007. The Eurofighter’s rough ride in Austria seemed to be over with delivery of the 15th and final aircraft in 2009, but controversies continue.

KC-46A Pegasus Aerial Tanker Completes Firsts

DID’s FOCUS articles cover major weapons acquisition programs – and no program is more important to the USAF than its aerial tanker fleet renewal. In January 2007, the big question was whether there would be a competition for the USA’s KC-X proposal, covering 175 production aircraft and 4 test platforms. The total cost is now estimated at $52 billion, but America’s aerial tanker fleet demands new planes to replace its KC-135s, whose most recent new delivery was in 1965. Otherwise, unpredictable age or fatigue issues, like the ones that grounded its F-15A-D fighters in 2008, could ground its aerial tankers – and with them, a substantial slice of the USA’s total airpower.

KC-Y and KC-Z buys are supposed to follow in subsequent decades, in order to replace 530 (195 active; ANG 251; Reserve 84) active tankers, as well as the USAF’s 59 heavy KC-10 tankers that were delivered from 1979-1987. Then again, fiscal and demographic realities may mean that the 179 plane KC-X buy is “it” for the USAF. Either way, the KC-X stakes were huge for all concerned.

In the end, it was Team Boeing’s KC-767 NexGen/ KC-46A (767 derivative) vs. EADS North America’s KC-45A (Airbus KC-30/A330-200 derivative), both within the Pentagon and in the halls of Congress. The financial and employment stakes guaranteed a huge political fight no matter which side won. After Airbus won in 2008, that fight ended up sinking and restarting the entire program. Three years later, Boeing won the recompete. Now, they have to deliver their KC-46A.

India’s IGMP Missile Programs: Export contenders?

Back in November 2005, The Hindu newspaper reported that India’s government had given the go-ahead for exporting missiles, and that India’s Defence Research and Development Organisation (DRDO) was looking to market several of its products internationally. The missile systems in question included several products from the decades-long Integrated Guided Missile Program (IGMP) set of development programs, and one new success that used a very different approach. DRDO has led the long, turbulent development histories of the Trishul (“trident”) short-range surface-air missile (SAM), the Akash (“sky”) medium-range SAM, and the Nag (“cobra”) vehicle-mounted anti-armor missile. In contrast, the Indo-Russian PJ-10 BrahMos medium-range supersonic cruise missile was developed very quickly, and performed as advertised.

As of August 2010, India has not made an export sale, or even formally decided which countries would be eligible to receive these missiles. The programs themselves have also seen changes and developments, with Trishul canceled, Akash finally ordered, BrahMos expanded, and ongoing IGMP work in other areas.

LCS: The USA’s Littoral Combat Ships

Exploit simplicity, numbers, the pace of technology development in electronics and robotics, and fast reconfiguration. That was the US Navy’s idea for the low-end backbone of its future surface combatant fleet. Inspired by successful experiments like Denmark’s Standard Flex ships, the US Navy’s $35+ billion “Littoral Combat Ship” program was intended to create a new generation of affordable surface combatants that could operate in dangerous shallow and near-shore environments, while remaining affordable and capable throughout their lifetimes.

It hasn’t worked that way. In practice, the Navy hasn’t been able to reconcile what they wanted with the capabilities needed to perform primary naval missions, or with what could be delivered for the sums available. The LCS program has changed its fundamental acquisition plan 4 times since 2005, and canceled contracts with both competing teams during this period, without escaping any of its fundamental issues. Now, the program looks set to end early. This public-access FOCUS article offer a wealth of research material, alongside looks at the LCS program’s designs, industry teams procurement plans, military controversies, budgets and contracts.

ER/MP Gray Eagle: Enhanced MQ-1C Predators for the Army

Its initial battles were fought within the Pentagon, but the US Army’s high-end UAV has made its transition to the battlefield.

The ER/MP program was part of the US Army’s reinvestment of dollars from the canceled RAH-66 Comanche helicopter program, and directly supports the Army’s Aviation Modernization Plan. The US Air Force saw this Predator derivative as a threat and tried to destroy it, but the program survived the first big “Key West” battle of the 21st century. Now, the MQ-1C “Gray Eagle” is in production as the US Army’s high-end UAV. As CENTCOM’s wars end, however, the Gray Eagle may find that staying in the fleet is as hard as getting there.

This FOCUS article offers a program history, key statistics and budget figures, and ongoing coverage of the program’s contracts and milestones.

Last of the Globemasters: The Final C-17 Orders

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.