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Boeing Awarded $3.1 Billion in U.S. Navy Cruise Missile Contracts

The U.S. Navy has awarded Boeing [NYSE: BA] a combined $3.1 billion in contracts for Harpoon and Standoff Land Attack Missile Expanded Response (SLAM ER) weapon systems in support of Foreign Military Sales (FMS). About $2.6 billion of that was contracted today while the remainder had been previously awarded.

“We are pleased to continue our long legacy of partnering with the Navy to build weapons that defend America and its international partners,” said Cindy Gruensfelder, vice president, Boeing Weapons. “These awards will not only extend production of the Harpoon program through 2026, they will also restart the production line for SLAM ER and ensure deliveries through 2028.”

Boeing last delivered the SLAM ER weapon system in 2008. In October 2019, Boeing began construction on a new 35,000 sq. ft. manufacturing facility to support increased production for the Harpoon and SLAM ER programs. Construction is expected to be complete in 2021.

Saab to Provide Mid-Life Extension for UK’s Arthur Systems

  • Saab has received an order from the United Kingdom’s Ministry of Defence for a mid-life extension and support for the Arthur weapon locating system. The order value is 482 million SEK, and was booked in Q4, 2019.

Arthur protects forces and civilians by providing warning of incoming fire and is also used for tasks including counterbattery missions and fire control. The mid-life extension will represent a major programme of obsolescence management by the insertion of modern technology, ensuring that this critical operational counter-fire capability can be sustained on a cost-effective basis through to its extended out-of-service date. 

“Our Arthur systems have contributed to protecting UK forces for more than 15 years. We look forward to continuing to strengthen the UK’s weapon locating capability for years to come,” says Anders Carp, Senior Vice President and Head of Saab’s business area Surveillance.

Deliveries of the mid-life extension will take place between 2022 and 2023. The support contract covers 2020-2026. Saab will carry out the work in Gothenburg, Sweden, with support also taking place at 5th Regiment Royal Artillery’s Marne Barracks in Catterick, UK. Arthur is known in the UK as the Mobile Artillery Monitoring Battlefield (MAMBA) radar.

 “MAMBA has long proven itself as a battle-winning capability, protecting civilians and troops on operations for many years. Our troops in Catterick will work alongside our counterparts at Saab to ensure this life-saving piece of equipment remains in service for the next six years”, says Jeremy Quin MP, the UK’s Minister for Defence Procurement.

The UK received the first Arthur systems from Saab in 2003, and the systems have supported operations in Iraq and Afghanistan.

Pentagon And Lockheed Martin Reach Agreement Reducing F-35A Cost By 12.8 Percent

U.S. Air Force F-35A Lightning II Joint Strike Fighters from the 58th Fighter Squadron, 33rd Fighter Wing, Eglin AFB, Fla. perform an aerial refueling mission with a KC-135 Stratotanker from the 336th Air Refueling Squadron from March ARB, Calif., May 14, 2013 off the coast of Northwest Florida. The 33rd Fighter Wing is a joint graduate flying and maintenance training wing that trains Air Force, Marine, Navy and international partner operators and maintainers of the F-35 Lightning II. (U.S. Air Force photo by Master Sgt. Donald R. Allen/Released)

FORT WORTH, Texas, Oct. 29, 2019 /PRNewswire/ — The F-35 Joint Program Office and Lockheed Martin (NYSE: LMT) finalized a $34 billion agreement for the production and delivery of 478 F-35s at the lowest aircraft price during the history of the Program. This contract includes all U.S., International Partners and Foreign Military Sales aircraft in Lots 12, 13 and 14. 

In the agreement, the F-35 Enterprise meets and exceeds its long-stated cost reduction targets for each variant – and the F-35A unit price, including aircraft and engine, is now below $80 million in both Lot 13 and Lot 14, the F-35A unit cost represents an estimated overall 12.8 percent reduction from Lot 11 costs for the conventional landing variant, and an average of 12.7 percent savings across all three variants from Lot 11 to 14.

“Driving down cost is critical to the success of this program. I am excited that the F-35 Joint Program Office and Lockheed Martin have agreed on this landmark three-lot deal. This agreement achieves an average 12.7 percent cost reduction across all three variants and gets us below $80 million for a USAF F-35A by Lot 13 – one lot earlier than planned,” said Air Force Lt. Gen. Eric Fick, F-35 Program Executive Officer. “This $34 billion agreement is a truly historic milestone for the F-35 Enterprise.” 

The agreement includes 291 aircraft for the U.S. Services, 127 for F-35 International Partners, and 60 for F-35 Foreign Military Sales customers. Price details include:

“With smart acquisition strategies, strong government-industry partnership and a relentless focus on quality and cost reduction, the F-35 Enterprise has successfully reduced procurement costs of the 5th Generation F-35 to equal or less than 4th Generation legacy aircraft,” said Greg Ulmer, Lockheed Martin, F-35 Program vice president and general manager. “With the F-35A unit cost now below $80 millionin Lot 13, we were able to exceed our long-standing cost reduction commitment one year earlier than planned.”

The sub $80 million unit recurring flyaway cost for an F-35 represents an integrated acquisition price for the 5th Generation Weapon System. With embedded sensors and targeting pods, this F-35 unit price includes items that add additional procurement and sustainment costs to legacy 4th Generation aircraft.

Program Progress

With more than 450 aircraft operating from 19 bases around the globe, the F-35 is playing a critical role in today’s global security environment. More than 910 pilots and 8,350 maintainers have been trained, and the F-35 fleet has surpassed more than 220,000 cumulative flight hours. Eight nations have F-35s operating from a base on their home soil and seven Services have declared Initial Operating Capability. 

In addition to strengthening global security and partnerships, the F-35 provides economic stability to the U.S. and International Partners by creating jobs, commerce and security, and contributing to the global trade balance. The F-35 is built by thousands of men and women in America and around the world. With more than 1,400 suppliers in 46 states and Puerto Rico, the F-35 Program supports more than 220,000 direct and indirect jobs in the U.S. alone. The Program also includes more than 100 international suppliers, creating or sustaining thousands of jobs.

Saab Receives Finnish Squadron 2020 Order

Saab has signed a contract with the Finnish Defence Forces Logistics Command, and received an order to provide and integrate the combat system for the Finnish Navy’s new Pohjanmaa-class corvettes within the Squadron 2020 programme.

This follows the previously announced selection on 19 September. The order value is 412 million Euro and the contract period is 2019-2027. The Finnish shipyard RMC Defence will build the Finnish Navy’s four new corvettes, with construction 2022 to 2025. The corvettes will be fully operational by 2028.  

“We are proud that Finland has chosen Saab as combat system provider and integrator for their new corvettes. Saab has a long history in Finland and the Squadron 2020 contract means that we will increase our footprint in and deepen our relationship with Finland for many years to come”, says Micael Johansson, Senior Executive Vice President and Deputy CEO at Saab.

The contract includes, among other things, Saab’s Combat Management System (9LV) and Saab’s radars Sea Giraffe 4A Fixed Face and Sea Giraffe 1X. The communication system TactiCall as well as the remote weapon station Trackfire, are also included in the contract.

“This is going to be the world’s most modern and advanced corvettes, with state of the art technology and capabilities, including the 9LV Combat Management System and the integrated mast featuring Saab’s sophisticated Sea Giraffe 4A Fixed Face radar and the Sea Giraffe 1X radar”, continues Micael Johansson.

Saab will carry out the work in Sweden, Finland, Denmark, Australia and South Africa.

U.S. Navy Commissions Littoral Combat Ship USS Billings

KEY WEST, Fla., Aug. 3, 2019- The U.S. Navy commissioned USS Billings (LCS 15) – the nation’s eighth Freedom-variant Littoral Combat Ship (LCS) – in Key West, Florida. This milestone places the ship, built by the Lockheed Martin (NYSE: LMT) -led team into active service. 

“Billings was designed to operate and adapt to a rapidly changing environment,” said Joe DePietro, vice president of Small Combatants and Ship Systems at Lockheed Martin. “She is equipped and ready for today’s threats and easily modifiable to meet the threats we may not even be aware of yet. Our team is confident Billings will be what the Navy needs when the fleet needs it.”

Unique among combat ships, LCS is designed to complete close-to-shore missions and is a growing and relevant part of the Navy’s fleet. 

  • It is fast — capable of speeds in excess of 40 knots. 
  • It is automated — with the most efficient staffing of any combat ship. 
  • It is lethal — standard equipped with Rolling Airframe Missiles (RAM) and a Mark 110 gun, capable of firing 220 rounds per minute. 
  • It is flexible — with 40 percent of the hull easily reconfigurable, integrating capabilities like the Longbow Hellfire Missiles, 30mm guns, and manned and unmanned vehicles targeted to meet today’s and tomorrow’s missions. 

“Having now commanded two freedom class LCS variants, I would like to report that these ships are truly impressive and will fit well in the niche they have been designed for,” said LCS 15’s Commanding Officer, Commander Nathan Rowan. “They are fast, maneuverable, and their weapon systems are some of the most accurate I’ve witnessed on any platform of which I’ve previously served.”

There are seven ships in various stages of production and test at Fincantieri Marinette Marine in Wisconsin, where the Freedom-variant LCS is built. The next Freedom-variant in the class is LCS 17, the future USS Indianapolis, which was delivered in late July. 

“On behalf of the proud 2,000 men and women who transform flat steel into a fast, agile surface combatant,” said Jan Allman, CEO of Fincantieri Marinette Marine, “we are honored to support the U.S. Navy, and we congratulate the outstanding crew of the USS Billings.”

Multimedia assets are available here: 

For more information, visit www.lockheedmartin.com/lcs

Two U.S. Marines Killed in Arizona Helicopter Crash

WASHINGTON, March 31 (Reuters) – Two U.S. Marine pilots died when their helicopter crashed near Yuma, Arizona, during a routine training mission, the Pentagon said on Sunday.

The Marines were flying an AH-1Z Viper helicopter as part of a weapons and tactics instructor course when the crash occurred late on Saturday, the Pentagon said.

The cause of the crash is being investigated. The Pentagon said the identities of the pilots would not be released for 24 hours pending notification of next of kin.

The AH-1Z Viper, a twin-engine attack helicopter built by Textron Inc subsidiary Bell Helicopter, entered production in late 2010. The Marine Corps was to acquire a total of 189 of the aircraft, according to a March 7 news release.

(Reporting by David Morgan; Editing by Dan Grebler and Daniel Wallis)

Raytheon Wins $1.5 bln UAE Air Force Contract

ABU DHABI, Feb 18 (Reuters) – The United Arab Emirates on Monday awarded Raytheon Co. a 5.7 billion dirhams ($1.55 billion) contract to supply its air force with platform systems to launch missiles, a UAE military spokesman said.

The agreement was signed at the week-long IDEX military exhibition in Abu Dhabi and followed the award on Sunday of a 1.3 billion dirhams contract to Raytheon to supply the UAE with patriot missiles.

The UAE armed forces signed a total of 7.2 billion dirhams in contracts on Monday, including 5.8 billion dirhams with international companies, Brigadier General Mohammed al-Hassani said, speaking through a translator.

The UAE has signed a total of 12 billion dirhams in contracts since the IDEX exhibition started on Sunday, he said.

Lockheed Martin, Germany’s Diehl Defence, and Sweden’s Saab on Monday launched at IDEX the Falcon air defence weapon system, billed as a replacement to the Hawk system used by countries in the Middle East.

Falcon was developed in response to a UAE request for a replacement for the Hawk system and talks are underway to sell it to the Gulf state, Scott Arnold, Lockheed Martin’s vice-president and deputy head of Integrated Air and Missile Defense said.

Weapons sales to the UAE have come under scrutiny over the past year due to the country’s involvement in the Yemen war that has killed tens of thousands of people and pushed the country to the brink of starvation.

The UAE and Saudi Arabia are leading a military coalition, which includes local forces drawn from Yemeni factions, that is trying to restore the internationally recognised government ousted from power in 2014 by the Iran-aligned Houthi movement.

($1 US = 3.6728 UAE dirham)

(Writing by Alexander Cornwell. Editing by Jane Merriman)

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