Week in review (9/15 to 9/21)

Like it or not, the aerospace industry is a striking example of the global economy. An aerospace company that has headquarters in one country nonetheless has operations, employees and suppliers that span the globe.

According to reports by Politico and others, the World Trade Organization has ruled in favor of the United States in its fight against the European Union over Airbus subsidies. Some who are oblivious – willfully or not – to the details see this as a win for an American company – Boeing. But it’s hard for those of us in this region to see it that way. We see it jeopardizing Mobile jobs.

We have a vibrant Airbus campus in Mobile that assembles A320 and A220 series jetliners. The major sections are shipped in from Europe. In light of the WTO ruling, it’s not just the completed products that will be subjected to tariffs, but also the aircraft sections that are shipped to Mobile. That promises to make the planes built here less competitive, and that could jeopardize an operation that has been growing since it first began operations.

The ruling gives the United States the go-ahead to impose billions in punitive tariffs on EU products in retaliation for illegal subsidies granted to Europe’s Airbus. The U.S. can choose products from a previously compiled list and tax them at different rates to claw back the total amount of damage resulting from the EU subsidies. Aircraft parts, including those shipped to Mobile, are on the list.

The U.S. first filed the complaint in 2006. A parallel complaint by the EU, alleging illegal U.S. subsidies for Boeing, is also being examined by the WTO and a ruling is expected in about eight months. Airbus sees any imposition on tariffs on EU aircraft parts as something designed explicitly to disrupt the company's supply and manufacturing chain by depriving the company of the parts it needs for the final assembly of its A320 series in Mobile.

But this is not the last word. The EU case, accusing Boeing of getting illegal subsidies from the U.S. government, is still being determined by the WTO. The EU is expected to win this, and would likely issue its own tariffs. (Post)

The problem here is that supply chain is interwoven. All the aerospace companies use suppliers from across the globe. Airbus procures about 40 percent of its components and expertise from the United States, and tariffs disrupt the entire system.

This all started well before the Trump administration came in. But with an administration that's clearly not adverse to the imposition of tariffs, this ruling opens the door for an escalation of the dispute if not handled through negotiations. If there ever was a time to craft a deal, this is it.

Military

The Navy has determined that replacing the TH-57 training helicopters with a more advanced helicopter and new ground based training system will have no significant impact on the quality of the human environment around Naval Air Station Whiting Field in Milton, Fla.

Preparation of an environmental impact statement is not required.

The proposed action will modernize the Navy’s rotary-wing and tilt-rotor integrated pilot production training program at Training Air Wing Five at NAS Whiting Field and its respective helicopter training Navy Outlying Landing Fields in Florida.

The replacement helicopter has not yet been chosen, but the Advanced Helicopter Training System will replace the TH-57 Sea Ranger training helicopters and simulators, and the training tempo will also increase. There will also be changes in operational tactics based on a new curriculum, construction of temporary and permanent supporting facilities, and an increase in personnel.

The Navy has made available the Final Environmental Assessment (EA). The Draft EA was made available for public review and comment from June 28 through July 19, 2019. All comments received were considered in preparing the Final EA. (Post)

Contracts – support services

COLSA Corp., Huntsville, Ala., was awarded a $69.6 million modification to exercise an option on a previously awarded contract for technical and management advisory services command, control, communications, computer, intelligence, surveillance and reconnaissance/cyber support. The contractor will provide additional research, development, test and evaluation, and acquisition support services. Work will be performed at Eglin Air Force Base, Fla., and other Air Force bases nationwide and is expected to be completed by Sept. 30, 2020. The Air Force Test Center, Eglin Air Force Base is the contracting activity. … Quantitech Inc., Huntsville, Ala., was awarded a $54.7 million modification to exercise an option on a previously awarded contract for technical and management advisory services range support. The contractor will provide additional diverse research, development, test and evaluation, and acquisition support services. Work will be performed at Eglin Air Force Base, Fla., and other Air Force bases nationwide and is expected to be completed by Sept. 30, 2020. The Air Force Test Center, Eglin Air Force Base, is the contracting activity. … Torch Technologies Inc., Huntsville, Ala., was awarded a $47.5 million modification to exercise an option on a previously awarded contract for technical and management advisory services armament support. The contractor will provide additional diverse research, development, technical, test and evaluation, and acquisition support services. Work will be performed at Eglin Air Force Base, Fla., and other Air Force bases nationwide. The Air Force Test Center, Eglin Air Force Base, is the contracting activity. … Bevilacqua Research Corp., Huntsville, Ala., was awarded a $37.2 million modification to exercise an option on a previously awarded contract for technical and management advisory services platforms support. The contractor will provide additional diverse research, development, test and evaluation, and acquisition support services. Work will be performed at Eglin Air Force Base, Fla.; Duke Field, Fla.; Hurlburt Field, Fla., and other Air Force bases, and is expected to be completed by Sept. 30, 2020. The Air Force Test Center, Eglin Air Force Base, is the contracting activity. … DCS Corp., Alexandria, Va., was been awarded a $28.2 million modification to exercise an option on a previously awarded contract for technical and management advisory services electronic warfare support. The contractor will provide additional diverse research, development, test and evaluation, and acquisition support services. Work will be performed at Eglin Air Force Base, Fla., and Edwards Air Force Base, Calif., and is expected to be completed by Sept. 30, 2020. The Air Force Test Center, Eglin Air Force Base, is the contracting activity. … Dawson Enterprises LLC, Honolulu, Hawaii, was awarded a maximum value $50 million construction requirements contract vehicle for Simplified Acquisition of Base Engineering Requirements (SABER) at Eglin Air Force Base, Fla. Work will be performed on Eglin and is expected to be completed by Sept. 20, 2024. The Air Force Test Center, Eglin Air Force Base is the contracting activity.

Contracts – flight training support

Vertex Aerospace LLC, Madison, Miss., was awarded a $19 million modification to a previously awarded contract. This is modification exercises an option for Aircraft Intermediate Maintenance Department support. Support to be provided includes intermediate-level maintenance, repair, and logistics support services, as well as tools and equipment. Work will be performed in Pensacola, Fla. (50%); Corpus Christi, Texas (45%); and Whiting Field, Fla. (5%), and is expected to be completed no later than September 2020. The Naval Air Warfare Center Training Systems Division, Orlando, Fla., is the contracting activity. … Rolls-Royce Corp., Indianapolis, Ind., was awarded a $23.7 million task order against a previously awarded contract. This order procures high pressure compressor stator vane assemblies to support T-45 F405-RR-401 Adour engines. Work will be performed in Kingsville, Texas (45 %); Meridian, Miss. (44 %); Pensacola, Fla. (10 %); and Patuxent River, Md. (1 %), and is expected to be completed no later than February 2023. The Naval Air Warfare Center Training Systems Division, Orlando, Fla., is the contracting activity. … M1 Support Services, Denton, Texas, was awarded a $12.4 million modification to a contract for Trainer Maintenance Services. Work will be performed at Sheppard Air Force Base, Texas; and satellite site at Naval Air Station, Pensacola, Fla., and is expected to be completed by Sept. 30, 2020. The 82d Contracting Squadron, Sheppard Air Force Base, is the contracting activity. … L3 Doss Aviation, Colorado Springs, Colo., was awarded a $9.4 million contract for advanced helicopter flight training support services. Work will be performed in Fort Rucker, Ala., with an estimated completion date of Oct. 31, 2026. U.S. Army Mission and Installation Contracting Command, Fort Eustis, Va., is the contracting activity. … Kratos Unmanned Systems Division, Sacramento, Calif., was awarded a $35 million contract for Air Force Subscale Aerial Target peculiar spares. Work will be performed at Sacramento and is expected to be complete by March 30, 2024. The Air Force Life Cycle Management Center, Eglin Air Force Base, Fla., is the contracting activity.

Contracts – munitions

Major Tool and Machine Inc., Indianapolis, Ind., was awarded a not-to-exceed $9.3 million contract for low rate initial production modification to a previously awarded contract for the BLU-111 warhead. This modification provides for the definitization for a quantity of BLU-111 warheads produced under the basic contract. Work will be performed in Indianapolis, Ind., and is expected to be complete by April 30, 2020. The Air Force Life Cycle Management Center, Eglin Air Force Base, Fla., is the contracting activity. … General Dynamics – Ordnance and Tactical Systems, Garland, Texas, was awarded a not-to-exceed $9.7 million contract for low rate initial production modification to a previously awarded contract for the BLU-111 warhead. This modification provides for the definitization for a quantity of BLU-111 warheads produced under the basic contract. Work will be performed in Garland, Texas, and is expected to be complete by April 30, 2020. Air Force Life Cycle Management Center, Eglin Air Force Base, Fla., is the contracting activity. … Alliant TechSystems Operations LLC – ATK Tactical Propulsion and Control, Rocket Center, W.Va., was awarded a not-to-exceed $8.8 million contract for low rate initial production modification to a previously awarded contract for the BLU-111 warhead. This modification provides for the definitization for a quantity of BLU-111 warheads produced under the basic contract. Work will be performed in Rocket Center, W. Va., and is expected to be complete by April 30, 2020. The Air Force Life Cycle Management Center, Eglin Air Force Base, Fla., is the contracting activity. … Enfield Enterprises Inc., Springfield, Mass., was awarded a $7.2 million requirements contract for the replacement of Halon and electrical at Guided Weapons Evaluation Facility. This contract consists of furnishing all plant, labor, materials and equipment, and performing all operations in connection with the replacement of Halon and electrical at Guided Weapons Evaluation Facility, Eglin Air Force Base, Fla. Work will be performed at Eglin Air Force Base and is expected to be completed by May 26, 2020. The Air Force Test Center, Eglin Air Force Base, is the contracting activity.

Contract – phased array radar

L3Harris Technologies Inc., Colorado Springs, Colo., was awarded a $12.9 million modification to a previously awarded contract for fiscal 2020 Eglin sustainment support. This modification provides sustainment support for the Eglin AN/FPS (Army, Navy/Fixed Ground Detecting/Range and Bearing Search)-85 Radar. The Eglin AN/FPS-85 Radar is a computer-controlled, phased-array radar set operating as a functional entity in the Air Force Space Command Space Surveillance Network. The radar set concurrently performs the functions of detection, target recognition, acquisition and track of many space objects. Work will be performed at Eglin Air Force Base, Fla., and is expected to be completed by June 30, 2020. The Space and Missile Systems Center, Peterson Air Force Base, Colo., is the contracting activity.

Contract – F-35

Harper Construction Company Inc., San Diego, Calif., was awarded a $95.4 million contract for the construction of the P-284 F-35C maintenance hangar at Naval Air Station, Lemoore, Calif. The project includes construction of a two-module Type I aircraft maintenance hangar, associated airfield pavements, operational and munitions storage, renovation of an existing battery shop, and building a new tool room. Project provides temporary facilities. Work will be performed in Lemoore and is expected to be completed by November 2021. The Naval Facilities Engineering Command, Southwest, is the contracting activity.

Week in review (9/1 to 9/14)

Ever wonder how many times you go to the bathroom on a trip in a jetliner? Neither have I. But Airbus is testing a new system that will tell the attendants that and much more.

According to a Bloomberg report, the next generation of Airbus planes will be a more digitally aware domain. "The program is Airbus's bid to raise the Internet of Things - that buzz-phrase for connected household gadgets - to cruising altitude," according to the article.

It's called the Airbus Connected Experience, and its goal is to give flight attendants a more detailed survey of the cabin, with sensors for such critical data as when bathroom soap is running low and how much toilet paper remains in each bathroom.

At your seat, the belt will signal red for unbuckled and green when fastened, with the idea of avoiding the walk-throughs flight attendants must perform. That will make for faster boarding and departure.

The crew will also have access to information on what's onboard and where, like which galley carts contain specific meals. Ingo Wuggetzer, the Airbus vice president of cabin marketing, said Tuesday at an aviation trade show in Los Angeles that it's not a dream, but a reality.

Airbus has begun flight testing the connected cabin on its A350 test aircraft and plans to introduce it on the A321 family in 2021, followed by the two-aisle A350 series two years later.

You can find the Bloomberg article with an internet search, but I found it in Time and the Los Angeles Times.

In another item of interest to this region, Defense News reported that the Air Force has barred the Boeing KC-46 aerial tanker from carrying cargo and passengers.

The decision was made after an incident occurred where the cargo locks on the bottom of the floor of the aircraft became unlocked during a flight, creating concerns that airmen could be hurt or killed by heavy equipment that suddenly bursts free during a flight.

The Air Force submitted a Category 1 deficiency report and is working with Boeing to identify a solution, according to Air Force Mobility Command spokesman Col. Damien Pickart.

The service uses the term Category 1 to describe serious technical issues that could endanger the aircrew and aircraft or have other major effects.

According to Defense News, the problem was found during an overseas operational test and evaluation flight, when KC-46 aircrew noticed that numerous cargo restraint devices had come unlocked over the course of the multiple legs of the trip.

This all could have a major impact on the already delayed tanker program. The company is locked into a fixed-price contract where it is responsible for paying for any expenses beyond the initial $4.9 billion award for development of the aircraft. So far, the company has paid in excess of $3.5 billion of its own money to fund corrections to ongoing technical issues.

Nobody from this region likes to see Boeing have problems with the tanker – after all, the life of our service men and women take priority. But folks from these parts also recall that Airbus and Boeing competed for the contract to build the tankers. Airbus won the contest, but Boeing protested and won the next contest.

We can only hope a solution is found and that our military gets this very important aircraft.

You can take a look at the full story by Defense News.

Now for your week – actually, two weeks – in review:

Military

Tyndall Air Force Base is undertaking most of its missions again and is planning repairs - designing and demolition work - 11 months after Category 5 Hurricane Michael.

During the third Industry Day event at Florida State University-Panama City, Tyndall officials provided updates on the base’s recovery. Col. Brian Laidlow, commander of the 325th Fighter Wing, said airmen have implemented temporary fixes to bring missions back online.

"Today at Tyndall we're doing nearly all of our pre-storm missions. We're doing it with about 80 percent of our people and we're doing it at only half of our facilities because that's all that survived," he said.

Permanent repairs, planning and pre-design, demolition and design work are underway. Permanent construction is expected to go into fiscal year 2024.

Tyndall will get up to three squadrons of F-35s starting in 2023 and remains the “preferred alternative” as the future home of 24 MQ-9 remotely piloted aircraft, Laidlaw said. (Post)

Contracts

Lockheed Martin Aeronautics Co., Fort Worth, Texas, was awarded a $266.2 million contract in support of F-35 aircraft for the Air Force, Navy, Marine Corps and non-U.S. Department of Defense (DoD) participants. Work will be performed in Texas, California, Florida, New Hampshire, Arizona, Vermont, Georgia, New York, Virginia, Colorado, Massachusetts, United Kingdom, Netherlands, Norway, Canada, and Australia. Work is expected to be completed by July 2022. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity. … Bowhead Cybersecurity Solutions & Services LLC, Alexandria, Va., was awarded a $19.7 million contract for the Air Force National Tactical Integration Program. Work will be performed at Hurlburt Field and Tyndall Air Force Base, both in Northwest Florida, as well as other bases in Texas, Maryland, Ohio, Illinois, Louisiana, Arizona, Georgia, South Carolina, Virginia, Hawaii, Nevada, and Florida. The Acquisition Management & Integration Center-Detachment 2, Joint Base San Antonio-Lackland, Texas, is the contracting activity. … DynCorp International LLC, Fort Worth, Texas, was awarded an $88.7 million modification to a previously awarded contract. This modification provides organizational, intermediate, and depot-level maintenance and logistics support for 16 T-34, 54 T-44, and 287 T-6 aircraft. Work will be performed at the Naval Air Station Whiting Field (42 percent) and NAS Pensacola (9 percent), both in Northwest Florida, as well as NAS Corpus Christi, Texas (47 percent) and various locations through the continental U.S., and is expected to be completed in March 2020. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity. … Raytheon Missile Systems, Tucson, Ariz., was awarded an $8.4 million modification to a previously awarded contract for field team support services for Advanced Medium-Range Air-to-Air Missile (AMRAAM) development test mission support including, test planning, test operations, test reporting and telemetry analysis. This contract modification provides for exercise of the third option for an additional 12 months of services to support ground tests, captive flight tests and live fire tests conducted for developmental purposes up to and including operational test readiness reviews. Work will be performed at Eglin Air Force Base, Fla., and is expected to be completed by Sept. 5, 2020. The Air Force Life Cycle Management Center, Eglin Air Force Base, Fla., is the contracting activity.