Page 6 - Aerotech News and Review 11-6-15

AF awards Long Range Strike Bomber contract
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editor
The Air Force announced Oct. 27
that it has awarded the Long Range
Strike Bomber contract to Northrop
Grumman.
The announcement was made joint-
ly by Secretary of Defense Ash Carter,
Secretary of the Air Force Deborah
Lee James, and Chief of Staff of the
Air Force Mark A. Welsh III.
The other competitor for the con-
tract was a combined team of Boeing
and Lockheed Martin.
“Over the past century, no nation
has used air power to accomplish
its global reach — to compress time
and space — like the United States,”
Defense Secretary Ash Carter said
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ing the contract. “Today, it’s vital to
innovate and reinvest in the people,
strategies and technologies that will
allow America’s military to be domi-
nant in the second aerospace century.
I’ve made such innovation a hallmark
of my commitment to the future of
America’s military.
“Building this bomber is a strategic
investment in the next 50 years, and
represents our aggressive commitment
to a strong and balanced force,” Carter
continued. “It demonstrates our com-
mitment to our allies and our determi-
nation to potential adversaries, making
it crystal clear that the United States
will continue to retain the ability to
project power throughout the globe
long into the future.”
Northrop Grumman released a
statement following the announce-
ment.
“The Air Force has made the right
decision for our nation’s security,”
said Wes Bush, chairman, chief exec-
XWLYHRI¿FHUDQGSUHVLGHQW1RUWKURS per aircraft is required to be equal to
Grumman. “As the company that de-
veloped and delivered the B-2 Spirit
stealth bomber, we look forward to
providing the Air Force with a high-
ly-capable and affordable next-genera-
tion Long-Range Strike Bomber.
“Our team has the resources in
place to execute this important pro-
gram, and we’re ready to get to work,”
Bush added.
Additionally, the company set up a
website: www.americasnewbomber.
com immediately following the an-
nouncement.
In announcing the contract award,
the Air Force Secretary explained that
the new bomber is necessary because
the average age of the B-52 is 50 plus
years, and the average age of the B–1
is 27 plus years. With advances in
anti-aircraft and surface-to-air missile
technologies the bomber force has to
stay further and further away from the
combat zone.
The new bomber “will operate in
tomorrow’s threat environment, and
be able to launch from the Continental
United States and hit targets anywhere
in the world.”
“The LRS-B is critical to national
defense and is a top priority for the
Air Force,” she said. “We face a com-
plex security environment. It’s im-
perative our Air Force invests in the
right people, technology, capability
and training to defend the nation and
6 would mean up to 1,100 new jobs at
its interests — at an affordable cost.”
Welch made mention of the open
architecture nature of the mission
systems.
“This open architecture will help
ensure competition throughout the
life cycle of the program, and make
it easier to modify the platform as
technology advances and the threats
evolve,” he said.
The Long Range Strike Bomber
contract is composed of two parts.
The contract for the Engineering
and Manufacturing Development, or
EMD, phase is a cost-reimbursable
type contract with cost and perfor-
mance incentives. The incentives
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do not control cost and schedule ap-
propriately. The independent estimate
for the EMD phase is $21.4 billion in
2010 dollars.
The second part of the contract is
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production lots, comprising 21 aircraft
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cost. Based on approved requirements,
the Average Procurement Unit Cost
or less than $550 million per aircraft
in 2010 dollars when procuring 100
LRS-B aircraft. The APUC from the
independent estimate supporting to-
day’s award is $511 million per air-
craft, again in 2010 dollars.
“In addition, as the chief men-
tioned, our acquisition strategy also
incorporates open mission system
standards, OMS standards,” said Wil-
liam LaPlante, assistant secretary of
the Air Force. “They allow future
competition of LRS-B components
and subsystems. This enables us to
more swiftly integrate new capabili-
ties to address changes in technol-
ogy, technology advances, changes
to threat. Also open mission systems
sustain competition throughout the life
cycle of the aircraft, therefore keeping Edwards Air Force base, the premier
affordability in the long term through-
out the life cycle.”
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said where work on the new bomber
will be done, aerospace analysts have
said Southern California, and Air
Force Plant 42 in Palmdale, Calif.,
will more than likely handle the bulk
of the new aircraft’s assembly.
Northrop Grumman built the B-2 in
Palmdale, and Rockwell International
(now Boeing) built the B-1B bomber
there as well.
7KHUHDUHQRRI¿FLDOHVWLPDWHVRI ally positive with Byron Callan, an
exactly how many jobs will be cre-
ated, both competing teams told the
Los Angeles County Economic De-
velopment Corp. that the contract
the winner’s Palmdale facility; and
David Blanco with the LAEDC said
the contract could create 5,500 jobs
for local subcontractors.
Sacramento lawmakers have been
proactive in the hopes whoever wins
the contract will bring the work to
California.
In July of 2014, legislators passed
a raft of tax breaks and credits that
would help Lockheed Martin, and in sions for the Air Force.
August of 2014, they passed the same “If more LRS-Bs are purchased overruns that have plagued many pre- experience, capability and resources
series of tax benefits for Northrop than now planned or there are cuts vious big-ticket programs.
Grumman.
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Local lawmakers were quick to 10 years, we expect that F-35 would the Air Force had two independent
praise the decision. be cut at the expense of LRS-B,” he cost analyses done on the program -–
said. ERWKIURPRXWVLGHWKHSURJUDPRI¿FH
“Building this project in California
ZLOOVLJQL¿FDQWO\EROVWHURXUPDQXIDF- Loren Thompson, a defense-indus- 3ULPHH[DPSOHVDUHWKH)¿JKW-
turing workforce, potentially provid- try consultant and analyst with the er jet and the B-2 stealth bomber. The
ing more than 1,000 new jobs,” said Lexington Institute, called the selec- Air Force initially wanted 648 F-22s
California Assemblywoman Sharon tion a “stunning upset.” at a cost of $139 million per plane.
Runner, R-Antelope Valley. “I look They eventually got 188 aircraft at a
forward to Northrop Grumman taking “Northrop beat a team with much unit price of $412 million.
advantage of these laws to bring much JUHDWHU¿QDQFLDOUHVRXUFHVDQGUHFHQW
needed jobs to the Antelope Valley production experience. For instance, And before that, the Pentagon
and get Californians back to work.” Boeing and Lockheed Martin deliv- wanted 132 B-2 Spirit combers at a
ered more than 300 military aircraft cost of about $500 million each. In
Palmdale City Mayor Jim Ledford last year. Northrop delivered nine, the end, the Air Force bought 21 air-
lauded the decision. none of them manned jets,” he said craft at a cost of $2.1 billion each.
“I’m skeptical that Northrop can ex-
“This is a big win for not only ecute the bomber program on the ag- Based on current LRS-B indepen-
Palmdale, but for Southern Califor- gressive schedule the Air Force has dent cost estimates, the Air Force
nia as well,” said Ledford. “With so set forth, but any way you slice it this projects the APUC for the program
many defense contractors and sub- is a huge win.” will be approximately a third of the
contractors here, this means good previous B-2 stealth aircraft.
jobs a boost to our economy. Having Initial reports indicate the LRS-B
LVLQWHQGHGWRUHSODFHWKH%ÀHHW “We believe this is a reasonable
ÀLJKWWHVWIDFLOLW\LQWKHZRUOGPDNH possibly replace the B-1B Lancer and achievable estimate. If we re-
the connection seamless. ÀHHWDQGFRPSOLPHQWWKH%6SLULW main disciplined and keep program
ERPEHUÀHHW requirements stable, we should beat
“A lot hard work went into mak- this estimate,” said Dr. William A.
ing this a reality,” Ledford said. “Our The new bomber is intended to be LaPlante, the assistant secretary of
thanks go to Bill Allen and the Los a heavy-payload stealth aircraft capa- the Air Force for Acquisition.
Angeles Economic Development ble of carrying thermonuclear weap-
Corporation business assistance and ons and initial capability is expected “The program acquisition strat-
development office, Congressman LQWKHPLGV2I¿FLDOVKDYHDOVR egy has carefully integrated lessons
Steve Knight, Assemblyman Tom stated that it must one day be capable learned from previous programs and
Lackey, as well as County Supervisor RIÀ\LQJDVDQXQPDQQHGDLUFUDIW considered all elements of life cycle
Michael D. Antonovich and his Chief costs in its design for affordability,”
of Staff Kathryn Barger for their tire- The initial request for proposal was LaPlante added. “We are primed to
less efforts,” he said. released July 9, 2014. The Air Force deliver this capability in the most af-
currently plans to buy 80-100 LRS- IRUGDEOHHI¿FLHQWZD\SRVVLEOH´
Reaction from analysts was gener- B aircraft at a cost of $550 million
each. It is expected that the losing team
analyst with Capital Alpha Partners, ZLOO¿OHDSURWHVWZKLFKFRXOGGHOD\
saying the contract could exceed the The Air Force revealed in September the actual contract award by several
top estimates of 100 aircraft. 2015 that the program was much fur- weeks or months.
ther advanced than had been previously
“Assuming this program can hit its acknowledged publicly and more than Boeing and Lockheed Martin re-
unit price objectives, we could see usual before a contract is awarded. leased a joint statement following the
more than 100 bombers being pro- announcement.
cured but that might not be known Officials said final requirements
until a new Administration puts forth had been locked down since May “The Boeing and Lockheed Mar-
LWVRZQGHIHQVHSODQIRU¿VFDO\HDUV 2013 and that both competing teams tin team is disappointed by today’s
2018-2022. Some independent ob- had mature proposals with prototyp- announcement. We will have further
servers project a need for 150-175 ing activities and wind tunnel tests, discussions with our customer before
bombers,” Callan wrote. And with although a demonstrator has not been determining our next steps.
the LRS-B likely to compete with the built yet.
F-35 for funding, this could set the “We are interested in knowing
stage for some tough funding deci- One of the biggest challenges fac- how the competition was scored in
ing the winning team and the Air terms of price and risk, as we believe
Force is, in this day of sequestration that the combination of Boeing and
and budget cuts, is to avoid the cost Lockheed Martin offers unparalleled
for this critically important recapital-
to DOD spending plans over the next In order to combat this problem, ization program.”
November 6, 2015