Saturday, January 31, 2009

Week in review (1/25 to 1/31)

It's an activity in the Gulf Coast region you don't hear about very much. It's not high profile like Stennis' rocket engine test stands, Keesler's Hurricane Hunters, Pensacola's Blue Angels or the weapons testing programs at Eglin. But it’s been keeping an eye on space for 40 years.

It's Eglin Air Force Base’s “Site C-6.” A rededication ceremony for the site was held this month marking four decades of space surveillance with its Phased Array Radar. The vice commander of Air Force Space Command was in town for the event.

Construction of the site got underway in 1962, and in 1968 the 20th Surveillance Squadron began tracking satellites. From 1971 to 1984 the squadron was the Alternative Space Surveillance Center and provided computational support to Cheyenne Mountain Air Station, Colo. In 1975 the 20 SURS began to monitor for submarine-launched ballistic missiles and space surveillance was a secondary mission, and in 1988 it began tracking deep space satellite.

The unit was renamed the 20th Space Control Squadron in 2003, and the next year it assumed responsibility for 20 SPCS Detachment-1 in Dahlgren, Va., and the AN/FPS-133 Space Surveillance Radar Fence located along the 33d parallel of the United States. The 20th Space Control Squadron today tracks more than 16,000 near-Earth and deep-space objects for the 21st Space Wing, Peterson Air Force Base, Colo. (Story)


- TANKER: The aerial tanker project came back into the news during the past week when Rep. John Murtha, D-Pa., visited Mobile, Ala., to take a look at the Brookley Industrial Complex site where Northrop Grumman and teammate EADS hope to build tankers for the Air Force. One of the more notable comments he made after the visit was learning that cargo planes would also be built in Mobile if Northrop/EADS wins the contract.

Murtha said that the Pentagon is moving forward and expects to have a request for proposals in the spring, but he said some alternatives are being considered on Capitol Hill. The Mobile Press-Register reported that during the luncheon, Murtha said the Air Force should buy aircraft from both Boeing and Northrop/EADS to break the stalemate. Murtha said he's convinced that's the best alternative, but he has to convince others.

The $40 billion tanker project has been hanging around for a long time now. The Northrop/EADS team won the contract last February to build the tankers in Mobile, but a Boeing protest was upheld. The Pentagon later decided to let the new administration take on the issue. Aviation Week during the week reported that the option of a split buy has been picking up steam on Capitol Hill. The Pentagon has opposed duel-sourcing, but some are beginning to think a split buy is the only politically palatable way to move forward.

One thing that occurred during the week that may make it more palatable for Boeing to split the tanker project was EADS' decision not to bid on the contract to supply the wide-body jets that will serve as Air Force One. The Pentagon invited the European Aeronautic Defence and Space Co. to submit a bid, but EADS said during the week that it wants to remain focused on military contracts. In this region, EADS builds helicopters for the U.S. Army in Columbus, Miss., and EADS CASA has a maintenance center in Mobile and an Airbus Engineering Center.

U.S. Defense Secretary Robert Gates said he plans to meet with top Air Force officials in the next few weeks to begin planning for a rematch to replace the KC-135 tankers. This promises to be a major story throughout the year.


- SPACE: The first Space-Based Infrared System geosynchronous orbit satellite, built by Lockheed Martin for the Air Force, has completed a key test using new flight software. The SBIRS program provides early warning of missile launches, technical intelligence and battlespace awareness. The spacecraft eventually will be launched aboard an Atlas V. One of the SBIRS work locations is the Lockheed Martin Space & Technology Center at Stennis Space Center, Miss., which provides the core system for the satellite.

Incremental steps forward also occurred during the week for the Constellation Program, a crucial program for both Michoud Assembly Facility in New Orleans and Stennis Space Center in Mississippi. Pratt & Whitney Rocketdyne’s Common Extensible Cryogenic Engine successfully demonstrated capabilities required for NASA’s Altair lunar lander during ground testing in West Palm Beach, Fla. Pratt & Whitney Rocketdyne has an operation at Stennis.

The High Bay Facility of the Operations & Checkout Building at Kennedy Space Center, Fla., is getting closer to building the new Orion crew exploration vehicle. Built in 1964, the O&C facility has been the final integration and checkout building for manned spacecraft. The State of Florida, Lockheed Martin and NASA invested $55 million renovate the facility for the Constellation Program. Flight hardware being fabricated nationwide will be integration at the O&C facility. Among the hardware will be large structures and composite parts for Orion fabricated at the Michoud Assembly Facility in New Orleans.

There was also a setback of sorts during the week for an innovative program being developed at Andrews Institute in Gulf Breeze, Fla. Gov. Charlie Crist asked for an inspector general's inquiry to see if the director of a new space-tourism medical program at the institute got his job after setting up the $500,000 in state grants to create it.


- MILITARY: Naval Air Station Pensacola had a $1.15 billion economic impact on local communities, according to an impact report. The base employed more than 21,000 military, civilian and contract employees in 2008. The report combined salaries for military, civilian and contract personnel along with local contract spending to reach the total. Other bases in the region include NAS Whiting Field in Milton, Eglin Air Force Base and Hurlburt Field, near Fort Walton Beach, Fla., and Keesler Air Force Base in Biloxi, Miss. The Navy is also the largest tenant at Stennis Space Center, Miss.

The Navy held a public meeting during the week in Summerdale, Ala., to discuss how the Navy’s new training aircraft may impact residents who live near outlying fields. About 200 people showed up at the Summerdale Community Center. The Navy is upgrading its trainer to a more powerful T-6B, and that will require more runway space at outlying fields.

Two pilots from F-16 Fighting Falcon squadrons at Luke Air Force Base, Texas, are among the pilots tapped to form the initial cadre for the F-35 Lightning II. The Marine Corps earlier this month selected six pilots for their version of the F-35 and will arrive at Eglin later this year or early next.

Keesler Air Force Base airmen and two WC-130J Hurricane Hunter aircraft deployed to Anchorage, Alaska, in early January for a month-long mission in support of the 2009 Winter Storm Reconnaissance Program. The 403rd Wing team includes Reserve aircrews, operations, maintenance, aerial porters, and others to improve winter storm forecast models.


- EARNINGS: Three companies with operations in the Gulf Coast Aerospace Corridor released fourth-quarter earnings reports during the week. Massachusetts-based Raytheon Co., which has operations in Northwest Florida, reported $466 million in adjusted income from continuing operations; Chicago-based Boeing, which has operations in New Orleans and Northwest Florida, reported fourth quarter revenues declined 27 percent to $12.7 billion; Virginia-based General Dynamics, which has operations in Northwest Florida and Stone County, Miss., reported fourth quarter revenue increased to $7.9 billion.


- CONTRACTS: Three defense contracts of interest to the Gulf Coast region were awarded during the week. The largest was a $276 million contract awarded by the Air Force to Los Angeles-based Northrop Grumman for operations and maintenance support of the RQ-4 Global Hawk. The UAVs are made in part in Moss Point, Miss.; Orlando, Fla.-based Hensel Phelps Construction was awarded a $121.1 million contract for construction of the Special Forces Complex at Eglin Air Force Base, Fla.; Kentucky-based L3 Communications Corp., Integrated Systems Joint Operations won a $6.1 million Air Force contract exercising an option for the production and installation of dual rails to the MC-130P. The work will be performed in Crestview and Fort Walton Beach, Fla.


- TEAMING UP: Companies with ties to this region also signed contracts with one another. Minnesota-based Alliant Techsystems agreed to a $200 million contract with Rolls-Royce to produce composite aft fan cases for the new Trent XWB engine that will power the Airbus A350 XWB. Trent XWB engines will be tested at Stennis Space Center, Miss., beginning in 2010 or 2011. Both ATK and Rolls-Royce have operations in the Gulf Coast; Airbus selected Goodrich for two projects. In one, Goodrich will supply wheels and carbon brakes for the A350 XWB. Another agreement calls for Goodrich to provide maintenance support Singapore Airlines’ fleet of 19 leased Airbus A330 aircraft. Goodrich has a service center in Foley, Ala., and Airbus parent, EADS, has two operations in Mobile, Ala. – the CASA service center and Airbus Engineering Center. It also operates American Eurocopter in Columbus, Miss.

Thursday, January 29, 2009

The value of field work

A Congressman who will play an influential role in the contest between Boeing and the Northrop Grumman/EADS team over the aerial tanker said Thursday that you get a different perspective when you get out of Washington and go out in the field.

Indeed.

Rep. John Murtha, D-Pa., chairman of the House Appropriations Subcommittee on Defense, visited Mobile, Ala., Thursday to talk to officials and see the site where EADS North America hopes to assemble the tankers to replace the Air Force's aging fleet. He also visited a Mobile shipyard involved in building next-generation warships. No doubt it was all designed to show Murtha the critical role Mobile plays in the nation's defense.

Murtha, who said the visit was very helpful, said before departing that he was particularly impressed with the teamwork he saw in Mobile. But he also said he learned something he apparently didn’t know – that the tanker contest may impact another major Mobile project: building Airbus cargo planes.

“If we work the contract out for the tankers, you not only do a tanker there but you do a cargo airplane there,” Murtha said about the EADS tanker site, currently just an empty piece of land at Brookley Industrial Complex. The European Aeronautic Defence and Space Co. said last year that it will build a cargo version of its A330 in Mobile if it wins the tanker contest. But that has been lost in the sometimes heated debate over the tanker.

The visit to Mobile is not all that Murtha has on his agenda. He also plans to visit Washington State soon to get a better sense of the project from that state’s and Boeing’s perspective. Little doubt he’ll find it’s just as important there, especially in light of the announcement that Boeing expects to cut 10,000 positions because of the ailing world economy.

Murtha said the Pentagon is moving forward and expects to have a request for proposals in the spring, but he said that during the appropriations process his committee is looking at alternatives. He did not provide details, but at least one option is widely known: a split buy. That option is apparently gaining traction. (Story)

It might, in fact, be the only remaining option to a battle that has been going on for years. In its most recent iteration, the Northrop/EADS team won the contract in February 2008, but a Boeing protest was upheld by the Government Accountability Office. The Pentagon later decided to let the new administration take on the issue.

The split buy option has been rejected by the Pentagon as too costly, and Defense Secretary Robert Gates has continued to hold that position. But political pressure might wind up changing that position. In an era where the economy is in a tailspin and the new administration has made clear its desire to do what it can to save jobs, a split buy might be the best of both worlds.

It would save jobs in Washington State - they likely are already thrilled that EADS decided not to compete to build Air Force One - while at the same time create jobs in Mobile and the Gulf Coast region that did not exist. And the possibility of building cargo planes in Mobile means even more jobs in this country. That likely doesn't sit well with EADS workers in Europe, but that's the global economy.

A split buy would also make it so much easier for Alabama political leaders who, no doubt, have been torn in two directions. While they would like to get EADS, they can't afford to alienate Boeing. The Chicago-based company is a major player in Alabama, and its health of upmost importance to the state. Boeing is the largest aerospace company in Alabama, and contributes about $1.2 billion each year to the state economy.

Boeing is so important to Huntsville, the company was recognized this month for its long-time commitment to the city and named the Huntsville/Madison County Chamber of Commerce's Industry of the Year. Boeing, which first set up operations in Huntsville in 1962, is the No. 3 employer in Huntsville/Madison County with some 3,100 employees at 17 locations. The company’s main facility is 690,000-square-foot, four-building complex on 110 acres at the Jetplex Industrial Park, near the airport. (Story)

Mobile officials little doubt envision something that significant – if not more so – resulting from this initial EADS project. And if a split buy is the way to help make that happen, so be it.

Saturday, January 24, 2009

Week in review (1/18 to 1/24)

If there’s one thing you can take for granted in the global aerospace industry, it's that today's competitor might very well be tomorrow's partner.

Last week in Paris, Eurocopter CEO Lutz Bertling said the company is looking for American partners on a proposed European heavy-lift helicopter and its bid for the U.S. Army's Armed Reconnaissance Helicopter. The European helicopter maker, an EADS subsidiary, is in early talks with Boeing and Sikorsky, a United Technologies company, as potential partners for a Future Transport Helicopter. (Story)

Boeing is, of course, EADS' rival in the bid for the U.S. Air Force aerial refueling tanker project. But that clearly doesn't stop its subsidiary, Eurocopter, from possibly working with Boeing on this project.

Aerospace companies that hope to win lucrative contracts will team up with others that offer them the best chance to win. It's something political leaders who get too closely aligned with one company and bad-mouth another need to keep in mind.


- Rep. John Murtha, who could play a key role in the battle over the Air Force refueling tanker contract, will be in Mobile Jan. 29 to tour the proposed Northrop Grumman/EADS assembly site. The Pennsylvania Democrat chairs the House Defense Appropriations Committee and was invited by Reps. Artur Davis and Jo Bonner.

Northrop/EADS was awarded the tanker contract last February, but Boeing's protest was upheld and the Pentagon later opted to cancel the contract and let the new administration decide.

Murtha right now likely has other things on his mind. Federal agents last week raided two small Pennsylvania defense contractors – Kuchera Industries and Kuchera Defense Systems – that were given millions of dollars in federal funding by Murtha. The two operations were raided by the Defense Criminal Investigative Service, the FBI and IRS as part of an ongoing investigation.

Pentagon auditors have been looking at the use of earmarks, special-interest spending items directed to a specific company by members of Congress. An Oct. 30, 2007 story in The Wall Street Journal identified Murtha as the largest earmarker in the House.


- While on the subject of Mobile, the Federal Aviation Administration during the week awarded $1.4 million to the Mobile Regional Airport for upgrades, according to Sen. Richard Shelby. The money will be used to repair storm drainage systems, replace the beacon and tower and other projects.


- The Marine Corps recently selected six pilots to become some of the first instructors for the Marine version of the F-35 Joint Strike Fighter. The Marines will travel to Eglin Air Force Base, Fla., where the training detachment for the F-35B will be located, by the end of this year or beginning of next.

The three variants of the JSF are the Air Force F-35A, Navy F-35C and Marine Corps F-35B. A short takeoff/vertical landing F-35s rolled off the line at the Lockheed Martin plant in Fort Worth, Texas, during the week and will be used to test the avionics systems in the summer of 2009. The aircraft, designated BF-4, will carry Northrop Grumman radar and integrated communications, navigation and identification suite and the BAE Systems electronic warfare system. Five F-35s are already undergoing testing.


- The officer who will become commander of Eglin Air Force Base’s Air Armament Center, Maj. Gen. Charles Davis, said this month that the F-35 Lightning II is on track despite an earlier budget shortfall. At a roundtable discussion in Washington, the departing program chief for the F-35 Lightning II also predicted that Israel, Singapore, Spain and Japan will join eight other international partners in the JSF program. At Eglin Davis is replacing Maj. Gen. David Eidsaune, who will become director of operations at headquarters Air Force Materiel Command at Wright-Patterson Air Force Base in Ohio.


- Eglin Air Force Base wants to use some of a 17-acre beachfront test site as a military resort. The proposed Emerald Breeze Resort could provide a revenue stream. Test Site A-5 is a mostly bare parcel next that has a small storage building with antennae only occasionally used to support test missions. The military pictures a 250-room resort. The Air Force will accept public comments until March 12.


- A classified spy satellite for the U.S. National Reconnaissance Office was launched from Cape Canaveral Air Force Station last week onboard a United Launch Alliance Delta IV powered by three Pratt & Whitney Rocketdyne RS-68 engines and one upper-stage RL10B-2 engine. The National Reconnaissance Office is responsible for operating overhead reconnaissance missions for the Department of Defense and the intelligence community. Pratt & Whitney Rocketdyne has an RS-68 operation at Stennis Space Center in Mississippi.


- The Air Force announced this past week the finalists for headquarters of 24th Air Force, a new numbered Air Force focused on the cyber mission – protecting the nation from attacks on computers and other communications systems. The bases are Barksdale Air Force Base, La.; Lackland, Texas; Langley, Va.; Offutt, Neb.; Peterson, Colo.; and Scott, Ill. A final selection will be made in June. Original plans called for a Cyberspace Command, but last fall the Air Force opted to make it a numbered Air Force. Keesler Air Force Base, in Biloxi, Miss., was among the candidates for the command.


- Three companies with operations in the Gulf Coast Aerospace Corridor released earnings reports during the week, and one released information that sets the stage for its report early next month. Northrop Grumman said it will record a fourth quarter loss of $3 billion to $3.4 billion, due to a drop in the book value of its shipbuilding and space technology activities. The company determined that the book value of the former Litton Shipbuilding and TRW, both purchased at the start of the decade, exceeded the fair value. Teledyne Technologies profits rose 24 percent for 2008 to $122.2 million, with fourth quarter profit up 16 percent to $30.8 million. The company's Mobile subsidiary, Teledyne Continental Motors, lost $2.8 million in the fourth quarter compared to a $3 million profit in the same three months of 2007. Lockheed Martin reported fourth quarter 2008 net earnings of $823 million - $2.05 per diluted share - compared to $799 million in 2007. Net sales were $11.1 billion, compared to fourth quarter 2007 sales of $10.8 billion. Cash from operations for the fourth quarter of 2008 was $997 million, compared to $425 million in 2007. Growth in the aerospace activities of Sikorsky and Pratt & Whitney boosted United Technologies’ fourth quarter 2008 income by 8 percent to $1.15 billion. That compares with $1.1 billion a year earlier. Earnings per share were up 14 percent to $1.23.


- There were at least four contracts awarded during the week with ties to the Gulf Coast Aerospace Corridor. Northrop Grumman won a $40 million modification to a previously awarded contract for procurement of three low rate initial production Fire Scout vertical takeoff and landing tactical unmanned aerial vehicle units and associated items. The final assembly work will be done at the Northrop Unmanned Systems Center in Moss Point, Miss. Bell-Boeing Joint Project Office, Amarillo, Texas, was awarded a contract with an estimated value of $581.4 million to provide Joint Performance Based Logistics support for the Marine Corps, Air Force, and Special Forces aircraft during the production and deployment phase of the V-22 Program. Some 6 percent of the work will be performed in Fort Walton Beach, Fla. EADS North American Defense, Arlington, Va., was awarded a $25.6 million contract for funding of the Army's Light Utility Helicopter contract for five UH-72A and supporting mission kits and equipment packages. Work will be performed at Columbus, Miss. EADS North America also has operations in Mobile, Ala. AeroVironment Inc., Simi Valley, Calif., was awarded a $17 million contract to procure a digital data link upgrade for the Raven RQ-11B Unmanned Aircraft System and FY 09 engineering services and accounting for contract services. Work will be performed at Simi Valley, Calif. AeroVironment has an operation at Navarre, Fla.

Saturday, January 17, 2009

Week in review (1/11 to 1/17)

Those who live around any of the Navy's outlying landing fields in the Gulf Coast will want to take note of a story that occurred as the week drew to a close. The Mobile Press-Register had a story saying the new training aircraft the Navy will be putting in service will likely mean the expansion of runways and safety zones around outlying fields. (Story)

The story focused on the four fields in Baldwin County, Ala., that will be impacted when the T-6B Texan II replaces the T-34C. But no doubt it has implications for other OLFs in the region, and there are plenty.

Naval Air Station Whiting Field in Milton, Fla., is where the military does initial training for military pilots. Anyone who lives here is familiar with the orange and white military aircraft. This year the base will begin a four-year plane switch. And that will mean some changes at the outlying fields essential for the training. The OLFs are where the student pilots do touch-and-go landings, maneuvers and other exercises in sparsely populated areas. The number of training flights also will increase.

The Navy plans to hold meetings so the public is fully aware of what’s going on.

This region is certainly military friendly, but that doesn't mean there are not occasional problems associated with encroachment. Building too close to a base with a flying mission can cause problems. Keesler Air Force Base in Biloxi, Miss., had to deal with the issue during the building of high-rise condos and casinos. Naval Air Station Pensacola, Fla., has also dealt with the issue. Florida has worked with environmental groups to buy land around bases, which seems to make everybody happy.

But it's not always a flying issue. Right now Eglin Air Force Base, Fla., and the nearby city of Valparaiso are trying to figure out how to deal with the additional noise the F-35 Joint Strike Fighter will bring when the joint training center opens at the base.

When the outlying fields were first established, they were in rural areas with little population. But time has changed that, and some neighborhoods have been established around some of the OLFs. We’ll keep an eye on this one.


- There were several stories during the past week about Northrop Grumman’s Global Hawk. An announcement is expected soon that NATO will buy eight Global Hawks in a deal that would be worth more than $1.3 billion. NATO is targeting a 2012 entry-into-service date for the airborne alliance ground surveillance fleet.

Any additional Global Hawk sales are important for Moss Point, Miss. Portions of the fuselage are built at the Unmanned Systems Center. But this sale will also have an impact on Melbourne, Fla., which will get another 125 engineers. The Global Hawk program is managed in Melbourne.

The other Global Hawk story was the unveiling at NASA’s Dryden Flight Research Center at Edwards Air Force Base, Calif., of the first Global Hawk unmanned system dedicated to earth science research. NASA plans to use them to support its Science Mission Directorate and the Earth science community, which requires high-altitude, long-endurance, long-distance airborne capability. That’s of high interest to John C. Stennis Space Center in Mississippi, which is home to a large earth science and geospatial community, including NASA’s Science and Technology Division.


- Speaking of robots, researchers at Tyndall Air Force Base near Panama City, Fla., have played a key role in developing a robot that can refuel planes on the ground. The Air Force Research Laboratory's Materials and Manufacturing Directorate at Wright-Patterson Air Force Base in Ohio is developing the automated system for the F-35 Joint Strike Fighter. It was researchers at the directorate's Airbase Technologies Division at Tyndall that developed the robot.


- While we’re on the subject of refueling, if you think the fight between Boeing and the Northrop Grumman/EADS team over the Air Force tanker contract project was bitter, just wait for the fight that’s expected over Air Force One.

The military officially launched the search for a new widebody presidential jet when it issued a request for information. Boeing has already said it considers the contract a priority, and Airbus is right now considering the RFI. What we may be looking at is a new battle that will pit Boeing’s 747 against the Airbus 380. Boeing has provided Air Force One for more than 50 years. That will likely make the fight over the tanker seem like child’s play. Boeing wants to build the tankers in Washington State, and Northrop/EADS want to build them in Mobile, Ala.


- The chancellor of the Alabama Community College System said during the week that plans for a stand-alone aviation college with a branch in Mobile, Ala., would be put on hold. Not surprising, Bradley Byrne said the issue was budgetary. He first announced plans for the Alabama Aviation College in October 2007, and he remains committed to the idea, but not just yet. Whether the indecision of the Pentagon over the Air Force tankers played any role wasn’t mentioned.


- Air travel may be down nationwide, but don’t tell that to the folks at Gulfport-Biloxi International Airport. Officials from that airport said during the week that more people flew into and out of that airport in 2008 than ever before - 6.5 percent more, in fact. In 2008 the airport saw 974,861 passengers.


- There were at least five contracts awarded during the week with ties to the Gulf Coast Aerospace Corridor. Raytheon Co., of Tucson, Ariz., got four of those contracts. The largest was one for $38.7 million, when the Air Force exercised an option for the production of 46 R7 HARM Targeting System pods and initial spares. The same day the Air Force obligated $4.5 million to Raytheon to provide for the High-Speed Anti-Radiation Missile Targeting Systems Software Upgrade Program. Earlier in the week the Air Force awarded a $16.2 million contract to Raytheon to provide a High-Speed Anti-Radiation Missile Targeting Systems Software Upgrade, and also modified a Raytheon contract for $6.7 million to the AMRAAM Production Lot 22 contract. The contracting activity in all of the above was Eglin Air Force Base, Fla. The other company awarded a contract was CSC Applied Technologies of Fort Worth, Texas. This one was $29.1 million and involved the Air Force exercising an option to provide for base operation support at Keesler Air Force Base in Biloxi, Miss. Keesler was the contracting activity.

Wednesday, January 14, 2009

The cloudy crystal ball

In the current economic environment, trying to figure out what will happen to aerospace programs important to the Gulf Coast is difficult if not impossible, given all the variables. But two things to watch: EADS' decision to reduce investment expenses to conserve cash, and the NASA administrator's comment that the agency may have to cut back on contractors if funding remains flat. Both have implications for the Gulf Coast.

During an annual news conference this week in Newport, Wales, CEO Louis Gallois said the European Aeronautic Defense and Space Co. decided at the 11th hour to abandon plans to purchase an unnamed defense company in the United States. The reason: It wants to conserve cash so it can offer credit financing to airlines to ensure they honor contracts. Gallois said one way to conserve money is to reduce investment expenses, according to Reuters. Bloomberg reported EADS may also cut production. (Reuters, Bloomberg, BusinessWeek)

The purchase of U.S. companies is just one sign of EADS' commitment to become a "citizen" of the U.S. aerospace market. EADS for some time now has made it clear that it plans to compete against U.S. giant Boeing for a number of aircraft platforms – perhaps even Air Force One. The most high profile competition to date has been the Air Force aerial refueling tanker. EADS and partner Northrop Grumman won that contest 11 months ago, but Boeing's protest was upheld and the Pentagon decided to punt to the new administration. Still, EADS continued looking for potential purchases, such as in the communications and sensor field.

Over the past few months both sides of the tanker fight have indicated they'll continue to pursue the Air Force project. But in the current economy, things can change overnight. Consider what Gallois said in the Reuters story: "We were on the way to sending the check and we pulled out at the last minute." It’s the old don't-count-your-chickens-before-they-hatch.

For what it’s worth, this isn’t the first time EADS backed off a planned purchase. In 2007 it opted to abandon the acquisition of a U.S. military drones designer after a split on its board, according to Reuters. In this latest target, Gallois declined to name the company but said it had recently won a Pentagon contract. The price tage on the aborted deal was in the region of $1 billion.

This belt-tightening shouldn't surprise anybody. Airbus and rival Boeing both saw new aircraft business halve last year after a record 2007. Boeing announced just last week that it's going to cut 4,500 workers form its commercial aircraft sector. There will be a lot of interest when Boeing releases its financial results for the fourth quarter and the full year Jan. 28.

So with Boeing and Airbus facing tough times, what will this do to the tanker contest?

Both sides have invested a lot of money in pursuit of the tanker project, not only through spending related directly to the competition, but additional monies spent on the advertising campaigns designed to state their cases. How much more will they spend, given the very real possibility that the loser of the next battle will likely file a protest? Certainly $40 billion is a huge prize, and that's just the start. And a default win is something I doubt anybody wants.

Consider also that EADS' already has a significant investment in this region. It operates the American Eurocopter plant in Columbus, Miss., and has two operations in Mobile - the Airbus Engineering Center and the EADS CASA maintenance operation. EADS has proven it's intent on investing in this country, but the question now is one of timing. The current recession has to make a company think twice about where to place its cash.

Is a split tanker buy beginning to look like the most viable alternative? We'll have to see.


NASA, too, is worried about finances.

During a news conference Tuesday, departing NASA administrator Michael Griffin warned that NASA would have to lay off an unspecified number of contractors if Congress freezes the agency's spending. He said Congress' decision to hold NASA spending at the 2008 level of $17.3 billion – rather than the requested $17.6 billion – could trigger cutbacks. Griffin declined to specify the locations, but did tell the Houston Chronicle cuts would largely come from the Constellation Program. (Story)

Both Michoud Assembly Facility in New Orleans and Stennis Space Center in Mississippi are highly interested in any NASA budget issues. As with other NASA facilities, they are in a state of transition between the Space Shuttle program and Constellation – NASA's push to get astronauts back to the moon and beyond. And while gearing up for the change, they can't help but be aware of the variables. There's a chance the shuttle program will be extended, a move that would likely set back the time frame for Constellation, despite president-elect Barack Obama's formerly stated desire to speed up that program.

And then there's the issue that's being debated largely behind the scenes. The United Launch Alliance, a Boeing-Lockheed joint venture, favors shelving development of the Ares I to launch the Orion crew capsule in favor of using the Atlas V or the Delta IV rockets that have been used by the Pentagon to launch military satellites. (Story)

We'll keep you posted.

Saturday, January 10, 2009

Week in review (01/04 to 01/10)

For those who believe the area between Michoud Assembly Facility in New Orleans and Stennis Space Center in Mississippi will one day develop into a high-tech, space-related corridor - much like the corridor in Huntsville, Ala. - a small step in that direction was taken during the past week.

Northrop Grumman’s 3001 International broke ground Wednesday on a new 20,000 square-foot facility in Slidell, La., the town between Michoud Assembly Facility in New Orleans and Stennis Space Center, Miss. The new office consolidates the existing Slidell 3001 office with the office the company had at Stennis Space Center. The new operation brings with it 50 new positions.

Northrop in October 2008 bought 3001, a provider of geospatial data production and analysis, including airborne imaging, surveying, mapping and geographic information systems. Northrop highlighted the acquisition in October at the U.S. Geospatial Intelligence Foundation's symposium in Nashville.

So is this a negative for Stennis, seeing 3001 leave? Not in the least. Companies at the Mississippi Enterprise for Technology, a business incubator and technology transfer operation at Stennis, are expected to one day leave and grow outside the incubator. That's chalked up as a success. That's the whole purpose of an incubator.

Now consider the context: NASA hopes to eventually see the unused acreage around Michoud – there’s about 800 acres – develop into an advanced manufacturing research park. And there's good reason to think this way. At the center of this park is the National Center for Advanced Manufacturing, a NASA/state/academia/industry partnership. On top of that, the University of New Orleans plans to create a research park in Slidell, similar to the UNO Research and Technology Park on UNO's campus. And just outside Stennis there's Stennis International Airport Airpark and the still-developing Stennis Technology Park.

Alliance Insight, the quarterly newsletter from the Mississippi Gulf Coast Alliance for Economic Development, has a background story you may want to read. The story appeared in the January 2008 issue.

None of this will happen overnight. It certainly didn't in Huntsville. If you're not familiar with what happened in that north Alabama city, let me give you the short version. That city in the '60s began to leverage the presence of NASA and the Army missile experts to create one of the most technology-oriented economies in the nation. An early decision to turn 3,000 acres into a research park, along with the development of a Huntsville campus of the University of Alabama, helped transform the city. Today, Cummings Research Park is the second largest research park in the nation and fourth largest in the world.

Thinking this region can do the same is the first step towards making it happen.


--Also during the week, NASA named Patrick Scheuermann as the deputy director of John C. Stennis Space Center, NASA's primary testing ground for propulsion systems. The promotion of Scheuermann, the center's associate director since August 2006, became effective Dec. 21. Scheuermann previously was chief operating officer of Michoud Assembly Facility in New Orleans. It's likely Scheuermann and others will be working for a new boss later this month. NASA Administrator Mike Griffin last week turned in notice that he'll be leaving Jan. 20. He doesn't expect to be offered a chance to stay on after President-elect Barack Obama takes office.

In another NASA-related item, the agency last week issued a request for proposals for the Ares V rocket. The rocket will perform heavy lift and cargo functions as part of the next generation of spacecraft that will return humans to the moon - the Constellation Project. Proposals are due to NASA's Marshall Space Flight Center in Huntsville, Ala., Feb. 9. Selections will be made in the spring of 2009.


--Northrop Grumman in the past week announced it has combined seven units into five to lower costs. The Integrated Systems group was combined with Space Technology to form the Aerospace Systems unit. The Information Technology and Mission Systems groups have combined as Information Systems. The new aerospace unit includes Moss Point, Miss., and other facilities that build the Global Hawk and Fire Scout unmanned aerial systems. 3001 International falls into the Information Systems group. At the end of the week Boeing announced steps it will take to reduce costs. The commercial aircraft sector of Boeing will drop 4,500 positions this year. It doesn’t appear it will have an impact on Boeing's operations in New Orleans or Northwest Florida, which are involved in space and weapons systems, respectively.


--All-quadrant 7.62mm Gatling guns are on track to be installed underneath seven Air Force Special Operations Command CV-22 Ospreys this year. The 413th Flight Test Squadron is testing the turret-mounted gun at Eglin Air Force Base, Fla., and the system has passed a series of tests. Critics had complained that the craft had no all-quadrant weapons, but in 2007 a contract was awarded to BAE Systems to deliver seven Remote Guardian Systems and install them onto CV-22 Ospreys for AFSOC deployments.

In another weapons-related news item, Lockheed Martin successfully conducted the first live warhead ground launch test of the DAGR guidance kit for the 2.75-inch rocket. Conducted at Eglin Air Force Base, Fla., the test demonstrated DAGR's vehicle penetration and time-delayed fuzing feature. Lockheed Martin engineers fired a DAGR-equipped rocket armed with a live warhead at a stationary vehicle. It penetrated the side of the vehicle before detonating inside. The system is designed for rotary-wing Hellfire platforms, including the Cobra, Apache, Seahawk, Kiowa and Tiger.


--Also during the week, Building 22 at Eglin Air Force Base has been renamed the Register Physical Sciences Center, in honor of the late Henry I. Register. Register spent more than 50 years at Eglin and was one of the pioneers of laser-guided smart weapons.


--At least four contracts were awarded during the week with some connection to the Gulf Coast Aerospace Corridor. The Boeing Co. received two contracts totaling $217.1 million from the Department of Defense for continued production of more than 4,000 Joint Direct Attack Munition tail kits and 2,500 Small Diameter Bombs and associated carriages; Northrop Grumman won a contract for $13.4 million for engineering, manufacturing and development activities in support of the Global Hawk Program; Lockheed Martin and the Coast Guard exercised contract options valued at $13.25 million to install mission systems aboard two additional HC-130J aircraft used in the Deepwater Program; and Raytheon was awarded a $12.2 million contract by Eglin Air Force Base, Fla., to provide a miniature air launched decoy jammer Block II program contract for a 14-month concept refinement study for data link and increased effective radiated power.

Sunday, January 4, 2009

Week in review (12/28 to 01/03)

It's a story playing out behind the scenes, for the most part. But it will have an impact on the Gulf Coast Aerospace Corridor. If it turns out one way, it could slow down considerably the growth of the region around the Michoud Assembly Facility in New Orleans.

There's an ongoing debate about the launch vehicle NASA plans to use to send astronauts back into space in the Constellation Program. The Orlando Sentinel last week published about as detailed a story about the issue as any I've seen. (Story). The New York Times also did a piece about NASA's future. (Story)

To bring you up to speed, NASA a few years back opted to develop the Ares I and Ares V to bring astronauts and payload, respectively, back into space. Ares V is the heavy lift version, designed to bring supplies. Ares I is designed to lift astronauts and the Orion vehicle. NASA chief Michael Griffin has maintained that Ares I is the safest, most reliable system. Modified military rockets, specifically Atlas V and Delta IV, can’t handle the chore, he says.

But not everyone agrees. The Sentinel says interviews and documents it obtained show military rockets can do the job for billions less and possibly sooner than Ares I. You can be sure that during this year the issue will continue to be debated.

But neither story, of course, discusses how a decision on the launch vehicle could impact the Gulf Coast region. As it stands now, the second stage of the Ares I will be built by Boeing at Michoud Assembly Facility in New Orleans, which is also where the final assembly integration and checkout of the Ares I avionics systems will be done as well. The first stage is being built by Alliant Techsystems (ATK) at its Thiokol plant in Utah.

Stennis Space Center in Mississippi is also involved in the Ares I. That’s where J-2X engines used in Ares I are being assembled and tested by Pratt & Whitney Rocketdyne. Stennis is building a new test stand for that very purpose, and an existing stand is also being modified.

The alternative launch systems, Atlas V and Delta IV, are built by United Launch Alliance, a joint venture between Boeing and Lockheed Martin, in Decatur, Ala, not far from Huntsville. The Delta IV uses the RS-68, and Stennis does assemble and test that engine. But Stennis doesn’t test any propulsion system for the Atlas V.

Should the Barack Obama administration opt for the Atlas V and Delta IV, the beneficiary will certainly be Decatur and the Huntsville area. The end of Ares I would not kill Constellation work at Michoud Assembly Facility - it will still have work on the Orion, the capsule that will bring the astronauts into space, as well as Ares V in the future. But the loss of Ares I would be a blow nonetheless, and put a brake on the broader vision.

NASA has made no secret of its desire to turn the Michoud Assembly Facility into a major fabrication hub for the Constellation Program. The agency wants to create a technology park on unused acreage surrounding Michoud, and is building an R&D center there. Some have envisioned a space corridor growing between Michoud and Stennis - and a group has formed in Louisiana and Mississippi to push that idea.

You can bet there are plenty of people working behind the scenes on this. It may not be as highly publicized as the battle to build Air Force tankers in Mobile, Ala., but make no mistakes, it's significant for the growth of the aerospace corridor region.


One other issue that will likely be a hot topic in 2009: the movement of the nation's defense companies towards getting a piece of the growing cybersecurity business.

Bloomberg last week wrote that aerospace giants Boeing and Lockheed Martin are throwing resources into cyberspace, a market that could reach $11 billion in four years. To capture some of this market, Boeing formed a new business unit in August, and Lockheed did the same thing in October. (Story)

Bloomberg notes that Raytheon, L-3 Communications and SAIC Inc., also have cybersecurity units. They will be competing for dollars with companies that for some time now have been involved in protecting computers systems: McAfee and Symantec.

The interest in cybersecurity goes well beyond these defense companies. The Air Force in 2008 made a big push to pull cybersecurity under its wing. There were plans to set up a separate Cyberspace Command, and a lot of economic development officials - including those on the Gulf Coast - pushed to land the command. The Air Force later dialed down its ambitious project. Still, it shows just how hot the topic has been.


We took advantage of what amounted to a slow news week to add some additional resources to our site. You can now get access to all the press releases from Airbus, Alliant Techsystems (ATK), Goodrich, Pratt & Whitney and Raytheon on our primary news page. They join BAE Systems, EADS North America, Lockheed Martin, Northrop Grumman and Rolls-Royce, which we’ve offered for some time now.

Those companies all have operations in the Gulf Coast Aerospace Corridor region, and our thought is to provide you with convenient access to all their releases, though we monitor them regularly to ensure you are aware of releases that have some relevance for the Gulf Coast.

Even in a slow week, there was some activity relevant to the corridor. The Air Force awarded a firm fixed-price contract to the McDonnell Douglas Corp. of St. Louis, Mo., for $13.8 million. It allows McDonnell, now a part of Boeing, to provide various test assets in support of The Small Diameter Bomb I program. Eglin Air Force Base in Florida s the contracting activity.

Two companies with operations on the Gulf Coast, Goodrich and Rolls-Royce, inked that agreement to form a joint venture company to develop and supply engine controls for Rolls-Royce aero engines. The venture, Rolls-Royce Goodrich Engine Control Systems Limited, operates as Aero Engine Controls. Rolls-Royce tests engines at Stennis Space Center in Mississippi and has a foundry in Pascagoula, Miss. Goodrich has a service center in Foley, Ala.

Sunday, December 28, 2008

Week in review (12/21 to 12/27)

It wasn’t a very good Christmas present for Northwest Florida.

According to the Air Force News Service, Northrop Grumman will move its Large Aircraft Infrared Countermeasures (LAIRCM) hub from Fort Walton Beach, Fla., to the Warner Robins area in Georgia. It’s the result of an agreement between the Air Force and Northrop Grumman signed Dec. 11.

LAIRCM is a laser-based system designed to counter the threat that slow-moving cargo aircraft and rotary-wing aircraft face from shoulder-fired missiles and missiles launched from vehicles. The system detects heat-seeking missiles and puts out a signal to confuse its path and direct it away from the aircraft.

This is a pretty big deal for Warner Robins. Phil Robinson, Northrop Grumman's system manager for LAIRCM, told AFNS that Robins AFB will work not only on Air Force platforms equipped with LAIRCM, but planes throughout the U.S. armed forces.

Much of the work to get the operation to George was apparently done quietly.

"The agreement culminates a lot of hard work that has been done behind the scenes by our folks who generate business for us, who generate workload for us, (and) who monitor our business operations," said Brig. Gen. Mark Atkinson, the 402nd Maintenance Wing Commander at Robins AFB. As the general put it, "this gets our foot in the door."

The workload now is not that great, but it's expected to go up over time. Northrop Grumman currently does most of the maintenance work on the system, Atkinson said. And one reason behind the agreement is the Air Force thinks the system too important to rely solely on private industry for maintenance, so Robins wants to handle it. If you want to read the full story, click here.

It’s really discouraging this high-tech capability isn't going to remain in this region, but that's what happens as folks work behind the scenes to bring more capability to their own base. It's something folks around Eglin Air Force Base need to consider while debating whether the F-35 Joint Strike Fighter training center will bring too much noise. What you don't want or what you're not watching carefully, someone else wants and might actively be pursuing.


One of the areas of aerospace that hold great promise for the Gulf Coast Aerospace Corridor is NASA's push to get private sector companies more involved in picking up the NASA slack, so to speak. The agency will be spending a lot of money in the future getting companies to perform the tasks the agency can't or won't.

A case in point: NASA awarded $3.5 billion in cargo contracts to two companies in hopes of encouraging development of a private-sector commercial space industry capable of providing the rockets that can carry passengers to the International Space Station and beyond. Space Exploration Technologies of California and Orbital Sciences Corp. of Virginia will provide 20 flights to the space station.

Now if you read this column or our news briefs regularly, you know that Orbital Sciences Corp. of Virginia is the company that recently decided to have the AJ26 rocket engines tested at the John C. Stennis Space Center in Mississippi. The testing will begin in 2009, and while it may not seem like a big deal, it is in that a company that is picking up the NASA slack will be doing some work in this region. Orbital is the same company that awarded a $49 million contract to Alliant Techsystems (ATK) to provide at least nine flight sets of Orion solid rocket motors. That work will be done at the ATK operation in Salt Lake City, Utah, but could this mean more testing at Stennis? Perhaps. We’ll have to see.

Speaking of space, the Lockheed Martin-led team developing the Air Force’s Space-Based Infrared System delivered the remaining major spacecraft bus subsystem for the second geosynchronous orbit spacecraft. The GEO-2 spacecraft core structure and propulsion subsystem was recently completed and the high-performance communications subsystem for the spacecraft was delivered in early December. The propulsion subsystem, essential for maneuvering the satellite during transfer orbit to its final location as well as conducting on-orbit repositioning, was developed at Lockheed Martin’s Mississippi Space & Technology Center at Stennis Space Center, Miss.


Northrop Grumman had a pretty good past week. Its RQ-4 Global Hawk Maritime Demonstration team was named Test Team of the Quarter for the second quarter of 2008 by the Navy's Air Test and Evaluation Squadron 20. The team won the award for achievements in the first half of the year. The team is, among other things, developing tactics and guidelines for Navy unmanned patrol systems. As you know, portions of the Global Hawks are built in Moss Point, Miss.

Northrop Grumman also won two Worker Safety Excellence Awards from the Aerospace Industries Association. The company’s Integrated Systems sector, which oversees Mississippi's Moss Point Unmanned Systems Center, was recognized for having the lowest injury and illness rate in the aircraft manufacturing category. The AIA cited Northrop Grumman's low workplace injury and illness rates as well as its positive safety program elements.

Saturday, December 20, 2008

Week in review (12/14 to 12/20)


The future of aerospace was unveiled at a ceremony in Palmdale, Calif., this past week when Northrop Grumman showed off its X-47B unmanned combat aircraft system - a stealthy, tail-less, strike-fighter sized robot aircraft.

"Unveiling the first X-47B UCAS aircraft signals a sea change in military aviation, made possible through the Navy's vision and leadership," said Scott Winship, Northrop Grumman vice president and Navy UCAS program manager.

The unveiling is of interest to the Gulf Coast for at least two reasons. First, unmanned aerial systems are being built in Moss Point, Miss. But there’s another reason: The Gulf Coast, specifically at Naval Air Station Pensacola, Fla., and NAS Whiting Field, near Milton, Fla., is where initial training begins for naval aviators. These future aviators have to be looking very carefully at developments in the unmanned aircraft field, and perhaps with some degree of trepidation. Let's face it, robot air vehicles, especially those that can perform combat operations, are future competition, so to speak.

The X-47B is a carrier-capable, multi-mission system designed for a variety of long range tasks, including intelligence, surveillance, reconnaissance, and the ability to strike targets with an array of weaponry. Predators have already shown UAVs can be used for strike missions, but what's different here is an aircraft that can do a catapult launch from a carrier and make an arrested landing. That goes to the heart of what it means to be a naval pilot.

The Navy awarded the demonstration contract to Northrop in 2007. This is the first of two UCASs Northrop Grumman will produce for the Navy to demonstrate unmanned combat aircraft operations from the deck of an aircraft carrier. The first sea trials are planned to begin in late 2011. The Navy UCAS program will set the stage for a potential full-scale UCAS development effort to support the Navy’s master plan, which includes provisions for introduction of a Navy UCAS in 2020.

It may be too early to start thinking this way, but it's not out of the realm of possibility that those aircraft may one day be built in Moss Point, where Northrop Grumman operates its unmanned systems center. The facility already makes Global Hawks and Fire Scouts and has plenty of room to grow.


Mississippi’s John C. Stennis Space Center, not far from the Mississippi-Louisiana state line, was chosen this past week as the site that will test the engine for the Taurus II space launch vehicle being developed by Orbital Sciences Corp. of Dulles, Va.

Taurus II is a medium-capacity expendable launch system being developed as an alternative to the Delta II. Taurus II will be used to launch the Cygnus spacecraft in 2010 for an International Space Station mission. Taurus II uses a pair of Aerojet AJ26 rocket engines to provide first stage propulsion. The first engine will be delivered to Stennis next year.

Activity in propulsion testing is clearly picking up at Stennis Space Center. It was just a couple of weeks ago that we told you Rolls-Royce North America is planning to increase its engine-testing activities at the test facility it opened last year. It's been testing Trent 900 and 1000 engines, and will also take on the BR725. By 2010 and 2011, Rolls-Royce will be testing the Trent XWB and RB282 engine at the NASA facility.


EADS North America celebrated this past week the delivery of the 50th UH-72A Lakota Light Utility Helicopter to the Army. The helicopters are built at American Eurocopter, the EADS North America facility in Columbus, Miss. EADS also has operations on the Gulf Coast, including an EADS CASA maintenance facility and an Airbus Engineering Center in Mobile, Ala. Speaking of Alabama, that state’s community colleges could be offering a new associate's degree next fall in an effort to boost the state's engineering workforce. Higher education officials say figures show the need for 1,100 new engineers a year to meet industry demand.


The governor of Florida and cabinet approved the purchase of more than 200 acres in the Clear Creek/Whiting Field area as part of the Florida Forever project. The acquisition will protect the environmentally sensitive land and prevent encroachment at Whiting Field Naval Air Station, a training site near Milton, Fla., where the Navy trains helicopter aviators. Meanwhile, Enterprise Florida presented Okaloosa County with two grants totaling some $300,000. One was a Defense Infrastructure Grant worth $200,000, the other a $99,000 Defense Reinvestment Grant. Money from these grants is used to improve the state’s defense activities.


On the issue of training, while the debate continues around Eglin Air Force Base, Fla. about the noise that the F-35 Joint Strike fighter will bring, other locations are making a big pitch to bring the fighter to their location. The Arizona Republic wrote that Arizona lawmakers are lobbying to have the F-35 brought to Luke Air Force Base. Luke is a finalist in the Air Force's efforts to determine which bases will become primary training facilities for pilots of the Joint Strike Fighter. Eglin is already slated to be home to the joint F-35 training wing, but each of the services is also looking for separate facilities for their particular branch.

Saturday, December 13, 2008

Week in review (12/07 to 12/13)

Five contracts with a connection to the Gulf Coast Aerospace Corridor were awarded during this past week. One was aircraft-related, three for weapon systems and one was for a construction project in New Orleans. The total value of the awards was $159.7 million.

The Air Force modified a contract with Northrop Grumman Systems Corp. of San Diego, Calif. – not to exceed $18.2 million – that will provide additional long lead associated with five Global Hawks, two ground segments, two EISS and two ASIP sensor payloads. Global Hawk fuselage work is done in part in Moss Point, Miss., at the Northrop Grumman Unmanned Systems Center.

In a weapons-related award, Raytheon Missile Systems of Tucson, Ariz., won a $15.6 million modification to a previously awarded contract for technical support of AIM-9X missiles for the Navy and Air Force. Five percent of that work will be done at Eglin Air Force Base, Fla., where the Air Force tests and develops airborne weapons systems. Eglin was also the contracting activity for two other weapons-related contracts. One was awarded to Raytheon, a $7.9 million modification of an Air Force contract for the Advanced Medium Range Air-to-Air Missile Air Intercept Missile. The other was a contract to McDonnell Douglas Corp., of St. Louis, Mo., for $110 million that exercises an option for Small Diameter Bombs, carriages, and technical and logistical support.

The other contract awarded this past week was for $8 million to Broadmoor, LLC, of Metairie, La., for design and construction of Calibration Laboratory at Naval Air Station JRB New Orleans.


Speaking of construction, ground was broken in Gulfport, Miss., at the Naval Construction Battalion Center for a new Naval Meteorology Professional Development Center. The $8.7 million center is designed to meet the current and future mission to advance, implement, and manage the education and advanced professional training of meteorology and oceanography officers, aerographer's mates and civilians.

Another construction project of note: Keesler Air Force Base, Miss., is doing repair work on its airfield ramp that will improve the field’s capability to handle larger aircraft. The 270-day project got started earlier this month. The current airfield operations support the C-21 missions of the 45th Airlift Squadron, C-130s from the Air Force Reserve's 403rd Wing, support for Coast Guard's aircraft training and more.


Goodrich Corp. was selected by Airbus to supply wheels and carbon brakes for all variants of the A350 XWB aircraft. The company could see as much as $3 billion in revenue over the life of the program. Although Goodrich’s Alabama Service Center in Foley, Ala., won’t be doing any of the work – the equipment will be provided by a Goodrich team in Ohio – in this economy anything that helps the parent company has got to be seen as positive news.


A California company with a manufacturing operation in Ocean Springs, Miss., has been named the 2008 North American Homeland Security Inspection and Screening Company of the Year by Frost & Sullivan. Rapiscan Systems was cited for its ability to develop and deploy products that enhance security at airports, seaports and border crossings worldwide. Rapiscan Systems has a 10,000 square-foot manufacturing facility in Ocean Springs.


At Eglin Air Force Base, Fla., a new chief of the Air Armament Center has been announced. Maj. Gen. David Eidsaune is leaving Eglin to become director of operations at headquarters Air Force Materiel Command at Wright Patterson Air Force Base in Ohio. Replacing him is Maj. Gen. Charles R. Davis, executive officer for the F-35 program office in Arlington, Va. Hard to picture a better selection, considering Eglin is in line to become a joint training base for the F-35 Joint Strike Fighter – if all the noise issues can be resolved.


A bit of news on the Air Force tanker project: U.S. Sens. Richard Shelby and Jeff Sessions of Alabama sent a letter to Defense Secretary Robert Gates urging quick action to replace the Air Force’s fleet of refueling tankers. The letter was sent after U.S. Rep. John Murtha of Pennsylvania said it could take at least two more years to restart the tanker competition. Both Alabama senators are hoping the Northrop/EADS team will win so the tankers can be assembled in Mobile, Ala.


Finally, the Army plans to bring a digital data link to its fleet of Raven UAVs so more aircraft can fly in a given combat area. The Army project manager says the service is buying 50 new Ravens and retrofitting 200 others. An executive with AeroVironment, a California company that makes the digital data link, says that with digitally compressed video more can be put into smaller bandwidth. AeroVironment has a UAV training and support operation in Navarre, Fla.

Saturday, December 6, 2008

Week in review (11/30 to 12/06)

The week ended with one of the region's aerospace operations slapped with bad news. In Fort Walton Beach, Fla., Chromalloy Gas Turbine dropped 67 workers and said it plans to close its 30-year-old Fort Walton Beach plant in the next few months. Plans are to consolidate the Fort Walton Beach operation with one in Texas. Chromalloy inspects and repairs commercial aircraft engines.

Another long-time resident of the Fort Walton Beach area also said goodbye. The 60th Fighter Squadron of Eglin Air Force Base, Fla., flew its final sortie after 37 years. The F-15 fighter squadron is part of the drawdown of the 33rd Fighter Wing. That wing is being replaced by the F-35 Joint Strike Fighter Program slated to arrive in 2010. Of course, that's assuming the controversy over the noise of the F-35 is resolved.

On the topic of last curtain calls, AirTran will end service to Gulfport-Biloxi International Airport in Gulfport, Miss., on Jan. 5. The company operated under a contract with casinos, but the casinos opted not to continue the contract. The airline said the market is not viable without it. The airport said AirTran accounts for up about 25 percent of scheduled traffic.

In Mobile, Ala., Northrop Grumman executive Wes Bush paid a visit to assure Mobile and state officials – and the media – that it's still committed to moving ahead on the Air Force tanker project. The Northrop/EADS team won the contract, but Boeing's protest was upheld and the competition is on hold pending the new administration.

On another EADS-related front, governments in the Mobile area will spend $468,000 on a firefighting system to help EADS CASA with an expansion of its Mobile facility. EADS CASA, a Spanish subsidiary of European Aeronautic Defence and Space Co., has an aircraft maintenance and training center at the Mobile airport.

In another EADS-related story, EADS North American Defense was awarded a $208.3 million contract for funding of 39 Light Utility Helicopters for the Army. Work will be performed in Columbus, Miss., at the company’s Eurocopter plant, and in Grand Prairie, Texas.

Rolls-Royce North America is planning to increase its engine-testing activities at Stennis Space Center in Mississippi. The company opened its Stennis operation less than a year ago and has tested Trent 900 and 1000 engines. The next one it will take on is the BR725. By 2010 and 2011, Rolls-Royce will be testing the Trent XWB and RB282 engine. All those engines are for commercial aircraft.

In another Stennis-related story, NASA supporters in Congress fear bailouts will make it hard for a new administration to maintain the current space budget, let alone deliver on a campaign promise to speed up the Constellation Program. Michoud Assembly Facility in New Orleans and Stennis Space Center in Mississippi are involved in space programs.

Speaking of the space program, it looks like the space program footprint in the Gulf Coast Aerospace Corridor region is going to expand. Andrews Institute, a sports health facility in Gulf Breeze, Fla., will be teaming up with Space Florida to provide personal spaceflight medical and training programs for commercial space tourists. The idea is that there are plenty of folks lining up to fly in space, and this program is designed to provide the training they'll need.

Saturday, November 29, 2008

Week in review (11/23 to 11/29)

As expected, it was a particularly slow week when it came to aerospace news from the Gulf Coast region last week. Even contracting activity was slow during a week shortened by Thanksgiving.


Eglin Air Force Base, Fla., was the contracting activity for two contracts awarded last week. One was a $96 million contract to McDonnell Douglas Corp. of St. Louis, Mo., to provide Small Diameter Bomb Aircraft Weapon Systems on various aircraft. The other was a $6 million contract for Raytheon Co., Missile Systems of Tucson, Ariz., to upgrade two guided weapons test sets.


Pratt & Whitney Rocketdyne, which has an operation at Stennis Space Center, Miss., completed the acquisition of ARDE Inc., a manufacturer of high performance spacecraft and missile propulsion components. ARDE of Carlstadt, N.J., produces pressure vessels, propellant tanks and support structures and provides integration of propulsion subassemblies.


In Panama City, Fla., the Panama City-Bay County Airport Authority will vote next month on a second runway at the international airport under construction. The hope is to add a 5,000-foot crosswind runway that will handle smaller aircraft and make traffic less congested on the 10,000-foot concrete runway now being built.

In Hattiesburg, Miss., the University of Southern Mississippi said it's considering leasing a Beechcraft King Air 200 for five years from the USM Foundation for some $1.9 million. Details are still being worked out and nothing is final yet.

Saturday, November 22, 2008

Week in review (11/16 to 11/22)

The week ended on a sour note for Mobile aerospace workers with the layoff of about 60 workers from Teledyne Continental Motors. The decision was based on a decline in the market for aircraft engines and parts. Teledyne Continental is located in the Brookley Industrial Complex.

There was a bit of news about the Air Force tanker project. That’s of high interest to the Mobile area, which hopes to build the tankers at Brookley. Pentagon acquisition chief John Young said he will advise the Obama administration to take a two-step approach to the competition between Boeing and Northrop Grumman/EADS, based on the best-price offer after bidders had shown an ability to meet stripped-down set of requirements. The Northrop Grumman/EADS proposal came in considerably less costly than the Boeing proposal.

Things are moving forward at Mobile Regional Airport. EADS CASA, a Spanish subsidiary of the European Aeronautic Defence and Space Co. wants to expand its facility there. The company won abatements from the industrial development board. Plans call for a 27,000-square-foot hangar.

Also during the week, the Mobile Airport Authority board members voted to pay former executive director Bay Haas $10,000 a month as a consultant for 19 months. The board in September announced plans to retain Haas when it hired Bill Sisson as the new chief of the authority.


Further to the east in the Fort Walton Beach area, a lot of concern is being felt over the Air Force’s decision to postpone the record of decision for the Joint Strike Fighter training school at Eglin Air Force Base. The delay will give the Air Force time to run tests on the new F-35 and explore alternative locations on the base for its bed down. The city of Valparaiso has been concerned over the noise of the F-35 and is suing the Air Force for additional information.

But the Air Force is moving forward on the Army 7th Special Forces Group bedding down at Eglin. The group will be located west of Duke Field. The cantonment area includes operations and maintenance facilities, housing, dining facilities, and munitions storage and loading facilities. Some 5.1 million square feet of buildings and hard surfaces will be built between 2009 and 2011.


In the western portion of the Gulf Coast Aerospace Corridor, the INFINITY Science Center broke ground on the Interstate 10 facility. It expects to draw as many as 400,000 people a year. The center will highlight the work being done at the neighboring Stennis Space Center. It plans to open in the fall 2010 with exhibits, interactive galleries, theaters, a gift shop and cafeteria, though the backers still need to raise another $4 million. If this facility becomes anything like the Space and Rocket Center in Huntsville, it will be of major importance for the Gulf Coast Aerospace Corridor.

In the same area of the corridor, Gene Goldman last week was named the new director of John C. Stennis Space Center. A native of Mississippi, Goldman has been the center’s deputy director since October 2006. He replaced Bob Cabana, who left in October to become the director of NASA’s Kennedy Space Center in Florida.


Upstate a ways in Hattiesburg, the University of Southern Mississippi signed a lease agreement with Crosslink to provide research space in the university’s polymer science building. Crosslink has worked with Southern Miss polymer science researchers since 2004. Previous collaborations include a variety of research projects in polymer-related technologies, particularly for military applications. Crosslink and USM hold a joint patent for a corrosion-inhibiting polymer. They are also working together on a “smart” aerospace composite that can alert crew of damage and initiate repair on its own.


Two contracts of note related to this region. In one, American Security Programs, Inc., Dulles, Va., was awarded $29.7 million to exercise an option under a previously awarded security services contract. The work includes guard and non-guard services. In this region, work will be performed at CBC Gulfport, Miss., NSA Panama City, Fla., and NAS Whiting Field in Milton, Fla. In the second contract, Virtual Media Integration, Ltd., Pensacola, was awarded an $8.3 million contract for the procurement of 5 pre-production Computed Radiography System units and up to 100 production units. The system is a portable nondestructive testing technique used for processing radiographic film. These systems will be used to inspect for defects and perform alignment measurements. Work will be performed in Pensacola.

Friday, November 21, 2008

News to note

For those of you interested in either the Air Force tanker project or unmanned aerial systems, there's a story in Aviation Week that combines the two topics.

A Boeing-led team has been selected to continue development of a system enabling unmanned aerial vehicles to autonomously rendezvous with a tanker and refuel. It's Phase 2 of the Air Force Research Laboratory's Automated Aerial Refueling program, and it involves actual fuel delivery to a surrogate UAV (Story).

In another UAV-related story, the Air Force News Service reports that a professor of mechanical engineering at the University of Maryland is researching miniature acoustic sensors and sound localization techniques using the hearing mechanisms of flies as a model. It could lead to the development of an artificial fly unmanned aircraft system with combined hearing and vision for navigation to inaccessible locations. It could also result in micro aerial vehicles having improved homing capabilities (Story). Of course, there's still the issue of navigation of micro-UAVs. The small size makes it particularly difficult to maneuver them. Even breezes can impact their flight. A meeting in Fort Walton Beach earlier this year discussed that very issue.

Here’s one for those of you who follow the space program, and particularly the progress of the Constellation Program. NASA, Lockheed Martin, Orbital Sciences Corp., and Alliant Techsystems successfully performed a ground firing test of a launch abort motor for the Orion crew exploration vehicle. The test was conducted at ATK's Launch Systems facility in Promontory, Utah (Story). Michoud Assembly Facility in New Orleans and Mississippi's Stennis Space Center are both involved in the Constellation Program.

Sunday, November 16, 2008

Week in review (11/09 to 11/15)

The folks behind the INFINITY project announced last week that they have scheduled a groundbreaking for the 72,000 square-foot science center. The ceremony is scheduled for Thursday. The $38 million center will be built near the Mississippi Welcome Center at Interstate 10, and it's designed to spark interest in the science activities at nearby Stennis Space Center. The center is expected to be a substantial tourist attraction for the region, and will focus on several science fields, including aerospace, marine science and more.

Late last week space shuttle Endeavour lifted off for a 15-day mission to prepare the International Space Station for a six-member crew. Shuttle launches are of interest to the Gulf Coast region workers because the external tanks are made at Michoud Assembly Facility in New Orleans and the engines tested at Mississippi's Stennis Space Center.

But many in the space program are busy looking ahead as well. Last week the high-performance J-2X rocket engine completed a critical design review at Marshall Space Flight Center in Huntsville, Ala. The J-2X engine was developed by Pratt & Whitney Rocketdyne and will power the upper stage of the Ares I rocket and the Earth departure stage of the Ares V. Pratt & Whitney Rocketdyne does a lot of J-2X work at Stennis Space Center.

One final piece of NASA-related news was the decision by former Stennis Space Center director Rick Gilbrech to leave the agency for the private sector. Gilbrech is stepping down as associate administrator for exploration systems. He left Stennis for that post back in the summer of 2007.


The Lockheed Martin F-35 Joint Strike Fighter flew supersonic for the first time last week, accelerating to Mach 1.05, or about 680 miles per hour. The test was done a full internal load of inert or “dummy” weapons on the one-hour flight. That may be of interest to the folks around Eglin Air Force Base, which is scheduled to become home to a Joint Strike Fighter training center. The city of Valparaiso, Fla., and the Air Force are still sparring over the noise issue. Last week city officials met behind closed doors to discuss the suit.

At Tyndall Air Force Base near Panama City, four student pilots last week became the first graduates of the Air Force’s F-22 Raptor Basic Course. These pilots are the first in the Air Force to have the F-22 as their first operational aircraft rather than transitioning to the Raptor from some other fighter.


There was some commercial airport news as well last week. Gulfport-Biloxi International Airport in Gulfport, Miss, which recently wrapped up a $50 million expansion, is now looking at some road improvement projects. That was a bit of good news for the airport, which learned late last week that Allegiant Air is ending its service to and from Orlando in January. Meanwhile, in New Orleans, Larry Austin, a former Florida highway patrol commander, was named federal security director for Louis Armstrong International Airport.

Saturday, November 8, 2008

Week in review (11/02 to 11/08)

The most important event during this past week for the Gulf Coast Aerospace Corridor was the election of Barack Obama as the next president of the United States. It's important because the next administration's views on defense and aerospace issues will be critical to the future of the region.

The new administration will face tough questions on major weapons programs, including how to move forward on the next generation of destroyers - important for Mobile, Ala., Pascagoula and Gulfport, Miss., and New Orleans - as well as what to do about replacing the fleet of Air Force tankers. That's important to Mobile. One thing seems clear already - Obama is a big advocate of technology and innovation, and that's likely to benefit the space program - important to New Orleans and South Mississippi.

The new president is expected to emphasize technological investments under national security and space exploration efforts at the expense of Defense Department big-ticket items. He’s declared support for technological innovation across the federal government, but in particular, he advocates unmanned aircraft, electronic warfare capabilities and cyber security.

Statements from Obama have indicated he’s inclined to favor awarding the tanker contract to Boeing, on grounds, at least in part, that it will save American jobs. But it’s also possible that when he takes office, he’ll have an opportunity to see the flip side - that awarding the contract to the Northrop Grumman/EADS North America team and assembling the planes in Mobile will lead to more foreign investment in the United States. The jury is clearly out on this one.

Obama has called for renewing the nation’s commitment to NASA, and he’s demanded a budget with sufficient resources for success in its critical missions - space exploration and human spaceflight, science and aeronautics research. One thing that could occur is an extension of the space shuttle program. Obama said NASA should take no further action that would make it more difficult or expensive to fly the shuttle beyond 2010.

More shuttle flights would help keep hundreds of people working at the Michoud Assembly Facility in New Orleans. But the price tag is $2 billion, and it might also push back the Constellation Program. That program is moving forward, at least for the time being. The first major flight hardware of the Ares I-X rocket arrived in Florida last week, and the test flight of the agency’s next generation launch system is set for July 2009.


Two Blue Angels team members, one a pilot, who were removed from duty for an “inappropriate relationship” were found guilty late in the week. The Navy has not identified the man and woman, but one was in the Navy, the other in the Marines. The flight demonstration team based in Pensacola, Fla., has been doing shows with one less plane than normal.

Speaking of air shows, Keesler Air Force Base in Biloxi, Miss., will be hosting its first air show in five years this coming April when it presents “Thunder on the Bay.” It will include aerial acrobatics and static aircraft displays, though details are still being worked out.

In another base-related matter from the past week, maintainers from Hurlburt Field, Fla., near Fort Walton Beach, were named winners of the Department of Defense Phoenix Award, the highest field-level maintenance award within DoD.


On Saturday, the Navy's first littoral combat ship, USS Freedom, was commissioned in Milwaukee, Wis. So what’s that got to do with aerospace? A Northrop Grumman Fire Scout helicopter drone is on the Freedom and will remain onboard as it transits from Milwaukee to Norfolk, Va. Finishing work on Fire Scouts are done in Moss Point, Miss.

Speaking of unmanned aerial vehicles, Northrop during the week was awarded a $97 million Army contract to procure, modify and deliver 12 Hunter MQ-5B UAVs and supporting equipment. Just another affirmation of the growing importance of unmanned aerial systems.

Wednesday, November 5, 2008

The road ahead

For a region of the country where defense issues play such an important role, it may be reassuring to hear analysts say it's unlikely defense will take a hit when the Barack Obama administration takes office. But, as with any sweeping statement, the devil is in the details.

Broadly speaking, analysts say Obama will be disinclined to make cuts that could cost Americans jobs during an economic downturn. Marion Blakey, president of the Aerospace Industries Association, said Obama understands the critical nature of defense, and the acute need to modernize the military with new equipment. (Story)

But at least one defense company is not so sure. England-based defense giant BAE Systems, which has operations in the United States, including the Gulf Coast, expects the United States to spend less on its military in an Obama presidency. (Story)

In either case, the new administration will face tough questions on major weapons programs, including how to move forward on the next generation of destroyers - an issue of high importance to Pascagoula and New Orleans. Both Obama and John McCain talked about controlling the cost of defense programs, and that could lead to more fixed-prices rather than those that allow a contractor to bill the government for cost increases.

There are at least two high-profile projects in the Gulf Coast that will be impacted by the next administration, not the least of which is the Air Force tanker project. In February the $40 billion contract was awarded to the Northrop Grumman/EADS North America team. The plan was to assemble the planes in Mobile, Ala.

But the Government Accountability Office later agreed with a Boeing protest and said the selection was flawed. After initially planning to put the rebid on a fast track, the Pentagon decided there was not enough time and opted to punt to the next administration.

Those who favor the Northrop/EADS team are likely a bit concerned that Obama won the election. When the contract was first awarded to Northrop/EADS, both Obama and Hillary Clinton criticized the Air Force decision.

After the Pentagon decided to punt, Obama praised the Pentagon for that decision. In September, he suggested he would favor Boeing for the contract if elected president. Obama told members of an aerospace union with close ties to Boeing that he would do everything in his power to “create and defend American jobs.”

If he holds true to that and works towards Boeing winning the contract, reaction outside the United States will be, to say the least, interesting. On the grass roots level, a Boeing win will likely be applauded by European aerospace defense workers who have seen jobs go away – in some cases to the United States. But foreign companies that compete in the tough U.S. market for defense dollars will not be happy with a Boeing win. Any moves toward protectionism will not be viewed favorably.

The other high profile aerospace program of interest to the Gulf Coast is the Constellation program and the current shuttle program. In the space sector, both Michoud Assembly Facility in New Orleans and Mississippi’s Stennis Space Center will be impacted by decisions of the next administration.

Obama has called for renewing the nation’s commitment to NASA and to provide a budget with sufficient resources for success in its critical missions - space exploration and human spaceflight, science and aeronautics research. He outlined his feelings in a letter to congressional leaders.

Among other things, Obama said NASA should take no further action that would make it more difficult or expensive to fly the shuttle beyond 2010. He closed his letter by saying “NASA helped America win the Cold War without firing a single shot by dazzling the world with our technological and moral leadership. It is time to dazzle them again.”

The next president’s backing may be particularly important given that NASA lost three strong supporters in the House Science Committee. Reps. Nick Lampson, D-Texas, and Tom Feeney, R-Fla., lost their re-election bids, and Rep. Mark Udall, D-Colo., chairman of the House Science space and aeronautics subcommittee, won his bid to represent Colorado in the Senate. (Story)

Saturday, November 1, 2008

Week in review (10/26 to 11/01)

IF ANYTHING, THE controversy in Northwest Florida about the F-35 and the increased jet noise level it will bring to communities around Eglin Air Force Base has escalated over the past week. How this plays out will be of high interest to any other areas of the nation where F-35s will be based.

An environmental impact study says that at military housing areas and base schools on Eglin, noise from the Joint Strike Fighter will be twice as loud as F-15s, reaching 83 decibels. Off base, F-35 noise will reach up to 90 decibels in neighborhoods under an Eglin flight path. And the number of people exposed frequently to sound levels of 75 decibels or more will increase from 142 people to 2,174 people.

The environmental impact study was prompted by plans to set up the joint F-35 pilot and maintenance training school at Eglin. It will, no doubt, bring a lot of economic development activity to the region. But the city of Valparaiso has expressed concern over the noise, and filed suit to get more information. Late in the week the city decided to increase the amount of money it plans to spend on the suit.

Residents of Valparaiso - or any area getting F-35s - might be interested in a story in the November issue of Defense Technology International, which details the growing issue of hearing loss in the military. An article by Senior Editor Paul McLeary, title "Equipment Noise is Accelerating Hearing Loss," points out that new equipment such as the F-35 Joint Strike Fighter and the Expeditionary Fighting Vehicle, is so loud that "the technology to protect users from damage does not yet exist." The article notes "it’s not a matter of whether but when and how badly operators will suffer permanent hearing damage."

Elsewhere, Gov. Charlie Crist and the cabinet approved a joint venture with the Navy to eventually preserve more than 5,000 acres of undeveloped land surrounding Whiting Field Naval Air Station north of Milton, Fla. The vote was unanimous to spend $1 million for an initial 208 acres near the base’s northeastern and southern perimeters.

One story during the week that got a lot of attention was out of Pensacola Naval Air Station in Pensacola, Fla., where two members of the Navy's Blue Angels flight demonstration team, one a pilot, were removed from the team allegedly having an inappropriate relationship. One story that didn't get a lot of attention, Air Force Special Operations gunships, based at Hurlburt Field, Fla., are getting a new tool to provide increased situational awareness – an addition that will let gunships take on a mission commander role.


ON THE SPACE FLIGHT front, NASA is also looking at speeding up development of the new moon rockets - Ares I and Ares V - and Orion, the Apollo-style crew capsule. Any speed up of that program is of high interest to Michoud Assembly Facility in New Orleans and Mississippi's John C. Stennis Space Center, both heavily involved in that mission.

During this past week, a story out of Stennis Space Center showed things are progressing in the construction of a new rocket test stand. Fabricated steel for the 300-foot test stand began arriving by truck Oct. 24. The new A-3 test stand will be used to test the J-2X engine, which will be used in both the Ares I and Ares V.

The full-scale components of the Ares I-X test rocket built at NASA’s Glenn Research Center are heading for Port Canaveral, Fla. At Kennedy Space Center the components of the upper stage simulator of the Ares I-X test rocket will be integrated with other parts of the Ares I-X vehicle for launch. The first test flight is being pushed back to July 12 because of the delay in a final Hubble Space Telescope servicing mission.


THE AERIAL TANKER ISSUE hasn’t gone away. You’ll recall the Northrop Grumman/EADS North America team was awarded a contract in late February to assemble 179 tankers in Mobile, Ala. But Boeing's protest was upheld by the General Accountability Office, which cited flaws in the Air Force process. The Pentagon later opted to cancel the project and leave it to the next administration.

There have been a lot of twists and turns since then, including voices from some quarters saying a split buy is becoming more possible. In one of the latest stories, the Pentagon came up with an approach that would make the entire issue a cost shootout between the Northrop Grumman/EADS North America and Boeing. The story says the next administration might go with this option. We'll have to see.

But in any case, two failed acquisition programs, including the one for the tanker, will be among the first subjected to a new review system. The new process will require Army and Navy officials to conduct peer reviews of the Air Force programs before, during and after contract decisions. The Air Force, in turn, will help review contracts for the other branches. The new process began Sept. 30 for all programs worth $1 billion or more.

Finally, while it's not directly related to the tanker issue, one of the competitors in that project has resolved a labor issue. Boeing and the International Association of Machinists and Aerospace Workers reached a tentative agreement last week. IAM says the new contract limits the amount of work outside vendors can perform in the workplace.