MTU Aero Engines has signed a contract with the German Federal Office of Defense Technology and Procurement (Bundesamt fur Wehrtechnik und Beschaffung or BWB), expanding the existing industry-military Cooperative Model of engine maintenance for the EJ200 engines that power Germany’s Eurofighters. The new, expanded agreement also includes the Turbo Union RB199 engines in Germany’s Tornado strike fighters, the GE J79 engines that powers its aging F-4 Phantom IIs, and the RR250-C20 that drives its BO 105 multi-role helicopters.
MTU claims to be the world’s largest independent provider of commercial engine maintenance services in terms of sales. The 10-year contract is worth EUR 370 million euros, of which approximately EUR 100 million are additional sales for MTU. The Bundeswehr (German armed forces), meanwhile, believe that they will save EUR 37 million euros through the deal. Further details are available in the full release [MS Word].
DID has covered special contracts before, wherein the US government can issue “extreme situations, massive response” requests and demand to have them met, quickly, by private sector entities. Since that kind of capability used to require large numbers of extra troops, including numerous domain expert specialists, it’s worth reminding ourselves what a change this represents.
The $10 billion US Air Force Contract Augmentation Program III (AFCAP III) is such a program, also referred to as “expeditionary engineering.” The Air Education and Training Command at Randolph Air Force Base, TX has just issued a set of indefinite-delivery/ indefinite-quantity contracts, which define the small roster of firms who have shown them the capabilities and capacities to handle the kinds of situations that AFCAP III may cover.
The Headquarters Aeronautical Systems Center at Wright-Patterson Air Force Base, OH has issued Boeing subsidiary McDonnell Douglas Corp. in Long Beach, CA received a $22 million time and material contract modification to the C-17 Globemaster III sustainment partnership. A separate $16.4 million contract adds combat lighting to 28 aircraft.
What is the C-17 Globemaster III sustainment partnership, you ask?
Back in April 2005, DID noted that Russia’s 2004 arms exports had risen to $5.78 billion as part of a five-year pattern of successively larger exports since 2000. Those figures appear to be stable, as Russian arms trader Rosoboronexport says that it has collected a portfolio of orders that is estimated to be worth $12 billion though 2007-2008 “We have orders for approximately $12 billion to be fulfilled by 2007-2008.”
Meanwhile, Rosoboronexport itself is changing its structure to become a state-owned corporation. It also seems to be trying to position itself as the procurement hub for domestic and international procurement of Russian weapons – one involved in export orders, defense tenders, and even new designs.
The UK Ministry of Defense (MoD) has responded to a Public Accounts Committee report that was highly critical of MoD’s performance and execution under Britain’s “Smart Acquisition” guidelines. The 20 largest projects currently in development are a total of GBP 5.9 billion over the originally approved targets, claims the report, and months behind schedule.
The MoD responded, of course, citing numerous improvements over the past year. It also released a new procurement handbook that offers the broad thrust of their future procurement practices.
The Public Accounts Committee recommendations included:
American States Utility Services in San Dimas, CA received a maximum $113.6 million a firm-fixed priced with price re-determination for a 50-year contract period for Air Force. American States Utility services shall assume ownership, operation and maintenance of the water distribution and wastewater collection systems at Andrews Air Force Base, MD. ASUS shall furnish all necessary labor, management, supervision, permits, equipment, supplies, materials, transportation, and any other incidental services for the complete ownership, operation, maintenance, repair, upgrades and improvements to the utility system.
There were 200 proposals solicited and three responded. The performance completion date is 2055, and the contracting activity is the Defense Energy Support Center (DESC) in Fort Belvoir, VA (SP0600-05-C-8250).
Boeing subsidiary McDonnell Douglas in Long Beach CA received a $273.7 million firm-fixed price contract modification to exercise the FY 2006 options for the C-17 Globemaster III Sustainment Partnership.
Through the C-17 GSP, Boeing has total system support responsibility for the aircraft, including materiel management and depot maintenance.
The Pentagon’s Office of Force Transformation (OFT) is a small shop with a staff of 18 people – 11 military officers and 7 civilians. Its annual budget is just $20 million, amidst an annual US defense budget of over $400 billion. Its mission is to provide alternative views of the military’s future 20 years from now, producing key studies like the Alternative Fleet-Architecture Design (which recommended more, smaller, cheaper ships – see below), Operational Responsive Space Initiatives, a bigger role for blimps, and leading initiatives like Project Sheriff’s vehicle-mounted “pain ray.”
Until recently, OFT could open doors with the sheer force of its director’s name: Arthur Cebrowski, a Navy aviator who flew combat missions in Vietnam and served in Desert Storm, retired Vice Admiral, acknowledged transformation czar, and former president of the Naval War College. DID also notes the implied tribute in institutions like the “Cebrowski Institute for Information Innovation and Superiority (CINFINIS)” at the Naval Postgraduate School in Monterey. Unfortunately for the OFT, Cebrowski is battling health problems and retired in January 2005. Can OFT continue to have an impact on decision-makers without Cebrowski behind it? What’s next for the OFT?
C-5 Refuels from KC-135 Note KC-135 = 707 airliner!
The Warner Robins Air Logistics Center (ALC) is the first public sector entity to be awarded the Shingo Prize for Excellence in Manufacturing (Gold Level). The C-5 Programmed Depot Maintenance workforce is receiving an award that BusinessWeek magazine referred to as the “Nobel prize of manufacturing,” awarded annually to companies that demonstrate world-class business results through the implementation of Lean Manufacturing principles and practices. The prize is administered by The College of Business at Utah State University, in cooperation with several nonprofit and corporate organizations.
DynCorp International in Irving, TX received a contract from The US Department of State to train, equip, and build the capacity of Afghanistan’s police forces. The potential value of the award is $117.2 million for the first year and $85.3 million and $87.5 million respectively, for two option years. This is a follow-on award for DynCorp International, which has been training police in Afghanistan since 2003.