Jura The idiot
General
On Presidential Helicopters:
Posted on InsideDefense.com: May 8, 2014
Sikorsky -- the sole bidder in the Navy's competition to build a new presidential helicopter fleet -- yesterday won a $1.2 billion development contract that could yield another $149 million in award fees but includes options for fewer production aircraft than the Pentagon predicted in 2012, according to Navy officials and government documents.
On May 7, the Navy awarded Sikorsky and partner Lockheed Martin a $42 million down payment to begin developing six aircraft as part of the Presidential Helicopter Replacement Program, dubbed VXX.
The Navy and Sikorsky agreed to a $1.2 billion target cost for the engineering and manufacturing development phase of the VXX program. In accordance with the terms of a May 2013 request for proposals, which set a pool of potential award fees equal to 12 percent of the negotiated target cost, the total target price to develop the new helicopter -- including the potential $149 million profit fees -- is $1.4 billion.
Should the effort to integrate specialized equipment into the commercially developed S-92 aircraft incur cost growth, the Navy and Sikorsky will evenly fund overages up to $1.4 billion. Any additional cost beyond that would be borne solely by Sikorsky. Conversely, should the program execute under the target cost, the government and contractor would split the difference.
"The target price, target profit and share rations are consistent with terms of the May 2013 solicitation," Kelly Burdick, a Navy spokeswoman, said of the executed contract.
The Pentagon's production plans to recapitalize HMX-1 -- the Marine Corps squadron that operates the 19-helicopter presidential fleet of VH-3D and VH-60N aircraft -- have changed slightly.
The new program of record calls for buying a total of 23 aircraft, two of which would remain test assets, according to a Navy statement. In 2012, when the Navy announced the VXX competition, it pledged to buy as many as 25, two of which would be used for testing (DefenseAlert, Nov. 27, 2013).
"They don't need that many aircraft," Navy Capt. Dean Peters, head of the presidential helicopters program, said of HMX-1's requirement for the two helicopters removed from the program. The earlier requirement for 25 aircraft -- or a fleet of 23 operational helicopters -- was in part a legacy of the VH-71 program, Peters told InsideDefense.com in a May 8 interview.
Subsequent analysis revealed that the two additional aircraft were linked to assumptions about sustaining the AugustaWestland aircraft, which was the basis of the VH-71; with Sikorsky's S-92, the Navy determined that only 21 operational aircraft are needed, Peters said.
"They need 16 operational aircraft at any one time," Peters said of the Marines that operate the presidential aircraft fleet. "The 21 will ensure that 16 aircraft are ready for tasking at any time."
In March 2009, then-Defense Secretary Robert Gates canceled the VH-71 program after numerous schedule delays and cost estimates that ballooned from $6.5 billion to $13.5 billion. The Navy then conducted three years of market research and an extensive analysis of alternatives before launching the VXX competition in November 2012.
In March, the Pentagon's deputy assistant secretary for systems engineering, Stephen Welby, reported to Congress that the new VXX program is well positioned for engineering and manufacturing development.
"The VXX program has effectively used the trade study process to establish a reasonable set of achievable requirements and reduced technical risk. This approach, along with the program's informed systems engineering, program planning, and source selection efforts, should result in an executable acquisition program," the March report states.
The Navy's five-year spending plan for fiscal year 2015 sets aside $3.1 billion for the program, including $795 million for the first year of production in FY-19.
Posted on InsideDefense.com: May 8, 2014
Sikorsky -- the sole bidder in the Navy's competition to build a new presidential helicopter fleet -- yesterday won a $1.2 billion development contract that could yield another $149 million in award fees but includes options for fewer production aircraft than the Pentagon predicted in 2012, according to Navy officials and government documents.
On May 7, the Navy awarded Sikorsky and partner Lockheed Martin a $42 million down payment to begin developing six aircraft as part of the Presidential Helicopter Replacement Program, dubbed VXX.
The Navy and Sikorsky agreed to a $1.2 billion target cost for the engineering and manufacturing development phase of the VXX program. In accordance with the terms of a May 2013 request for proposals, which set a pool of potential award fees equal to 12 percent of the negotiated target cost, the total target price to develop the new helicopter -- including the potential $149 million profit fees -- is $1.4 billion.
Should the effort to integrate specialized equipment into the commercially developed S-92 aircraft incur cost growth, the Navy and Sikorsky will evenly fund overages up to $1.4 billion. Any additional cost beyond that would be borne solely by Sikorsky. Conversely, should the program execute under the target cost, the government and contractor would split the difference.
"The target price, target profit and share rations are consistent with terms of the May 2013 solicitation," Kelly Burdick, a Navy spokeswoman, said of the executed contract.
The Pentagon's production plans to recapitalize HMX-1 -- the Marine Corps squadron that operates the 19-helicopter presidential fleet of VH-3D and VH-60N aircraft -- have changed slightly.
The new program of record calls for buying a total of 23 aircraft, two of which would remain test assets, according to a Navy statement. In 2012, when the Navy announced the VXX competition, it pledged to buy as many as 25, two of which would be used for testing (DefenseAlert, Nov. 27, 2013).
"They don't need that many aircraft," Navy Capt. Dean Peters, head of the presidential helicopters program, said of HMX-1's requirement for the two helicopters removed from the program. The earlier requirement for 25 aircraft -- or a fleet of 23 operational helicopters -- was in part a legacy of the VH-71 program, Peters told InsideDefense.com in a May 8 interview.
Subsequent analysis revealed that the two additional aircraft were linked to assumptions about sustaining the AugustaWestland aircraft, which was the basis of the VH-71; with Sikorsky's S-92, the Navy determined that only 21 operational aircraft are needed, Peters said.
"They need 16 operational aircraft at any one time," Peters said of the Marines that operate the presidential aircraft fleet. "The 21 will ensure that 16 aircraft are ready for tasking at any time."
In March 2009, then-Defense Secretary Robert Gates canceled the VH-71 program after numerous schedule delays and cost estimates that ballooned from $6.5 billion to $13.5 billion. The Navy then conducted three years of market research and an extensive analysis of alternatives before launching the VXX competition in November 2012.
In March, the Pentagon's deputy assistant secretary for systems engineering, Stephen Welby, reported to Congress that the new VXX program is well positioned for engineering and manufacturing development.
"The VXX program has effectively used the trade study process to establish a reasonable set of achievable requirements and reduced technical risk. This approach, along with the program's informed systems engineering, program planning, and source selection efforts, should result in an executable acquisition program," the March report states.
The Navy's five-year spending plan for fiscal year 2015 sets aside $3.1 billion for the program, including $795 million for the first year of production in FY-19.