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BULLHORN #70   F-35  
5APR10

 

mural design by Laser Imaging & Design with permission

 

 

C:\Documents and Settings\Dutch Rauch\My Documents\1ANA\100th Anniversary of Naval Aviation\CoNA logos\CoNA patch 004.jpg

ANAers!!

 

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HORNET UPDATE

FIRST – the latest from Navy Leadership – this GOOD NEWS from our Commander, Naval Air Forces, VADM Thomas “Killer” Kilcline a couple of days ago:

 

“Dutch - a correction to my note that that I just noticed as the final Red Stripe comes out.  Two of the seven F18D's requiring repairs are still in the RAG and not in DEPOT repairs yet.  As I said no Fleet jets impacted.  Killer

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This BULLHORN is in response to the many members who have asked for more information on the F-35.

News and events of the F-35 program have been fast and furious, some with good information, others obviously ‘searching for ink’.  The collection below represents what has been published in the last couple of weeks – some positive, some ‘other.’  As we read the news of the F-35, remember it is a program that is still in testing – development continues day-to-day.  We also need bear in mind that, in some circles, bad news ‘sells’ better than any other. 

Because all of this BULLHORN is F-35, it does not contain an index and links to individual articles.

MEMBERSHIP!!!!

VR,  Dutch

 

NEW JSF PROGRAM DIRECTOR

March 16, 2010  


Flag Officer Announcement  

            Secretary of Defense Robert M. Gates announced today that the President has made the following nomination:  

            Navy Vice Adm. David J. Venlet has been nominated for reappointment to the rank of vice admiral and assignment as director, Joint Strike Fighter program, Office of the Secretary of Defense, Arlington, Va. Venlet is currently serving as commander, Naval Air Systems Command, Patuxent River, Md.  

 

GAO Warns More F-35 Cost And Schedule Hiccups Likely

(DEFENSE DAILY 22 MAR 10) ... Emelie Rutherford 

Government auditors' latest assessment of the F-35 Joint Strike Fighter program warns additional cost growth and schedule extensions, beyond those recently unveiled, are likely.

The Government Accountability Office's (GAO's) sixth annual F-35 report, released last Friday, reflects much but not all of the latest cost data emerging from the Pentagon on the effort to buy 2,443 jet fighters for the Air Force, Navy, and Marine Corps.

The program's total procurement cost has risen to a much as $232 billion, in 2002 dollars, compared to $143 billion back in late 2001, according to a F-35 "unit cost report" for March the Pentagon also released last Friday.

Pentagon officials are planning to recertify the Lockheed Martin [LMT] aircraft effort, a step required under the Nunn-McCurdy statute because of cost overruns; however, congressional aides said Congress had not been officially notified of the Nunn-McCurdy cost breach as of last Friday.

The F-35's average-procurement-unit cost has risen to as high as $95 million in 2002 dollars, a growth of up to 89 percent since the program received milestone B approval in 2001, according to the Pentagon.

Air Force Secretary Michael Donley will officially notify Congress of the Nunn-McCurdy cost breach before April 1 and a required package recertifying the F-35 as a vital program that must continue will be sent to Capitol Hill around early June, Pentagon officials told the Senate Armed Services Committee (SASC) March 11.

The GAO's Michael Sullivan, director of acquisition and sourcing management, at that March 11 hearing previewed his office's new report, titled "Additional Costs and Delays Risk Not Meeting Warfighter Requirements on Time."

The report says the Pentagon's recent restructuring of the F-35 program--which extends its development phase and reduces the number of production aircraft purchased in the early years--"should improve outcomes and provide more realistic cost and schedule estimates."

Yet it warns, "Restructuring is not finished and further cost growth and schedule extensions are likely."

The report cites concerns with "substantial overlap of development, test, and production activities while (the Defense Department) continues to push ahead and invest in large quantities of production aircraft before variant designs are proven and system performance verified."

The GAO reiterates its call for "adopting a more evolutionary, incremental strategy that delivers proven and operationally suitable capabilities when available, but acknowledges that more time is needed to deliver the full capabilities."

Multiple "testing and technical challenges," the GAO report states, "will likely add more costs and time to development, affecting delivery of warfighter requirements and hampering start up of pilot and maintainer training and initial operational testing."

The GAO recommends conducting a comprehensive and independent assessment of F-35 costs and schedule that goes beyond the analysis already done by the Pentagon's Joint Estimating Team, Independent Manufacturing Review Team, Joint Assessment Team, and Naval Air Systems Command.

"While the independent cost estimate completed by the Joint Estimating Team is a very good start, it by design focused only on the near term," the GAO says. "Until a complete and comprehensive cost estimate that provides cost through completion of procurement and includes a more complete estimate of military construction funding requirements is formally adopted as the new program of record, JSF program costs will remain unclear."

"Tying annual investments more directly to demonstrated progress in developing, testing, and manufacturing aircraft would be a prudent fiscal measure," it adds.

The Pentagon, in response to an draft of the new GAO report, says it concurs with the GAO's recommendation for such a cost and schedule estimate. 

 

Critics: Time To Bail On Navy JSF

Proposed Super Hornet Buy Could Be More Than A Stopgap Solution

(NAVY TIMES 29 MAR 10) ... Andrew Tilghman

Is it the beginning of the end for the Navy’s F-35C?

A steady string of bad news for the Joint Strike Fighter program – which includes the Navy’s carrier variant – has some observers suggesting the service abandon its plans to purchase more than 300 of the fifth-generation jets to fill out the future fighter fleet.

The alternative: Continue buying F/A-18E/F Super Hornets from Boeing that have been on carrier decks for almost a decade.

“I think the Navy needs to walk away from the F-35C based on affordability concerns and continue with the Super Hornet,” said one congressional aide who spoke on condition of anonymity because the matter is still being intensely debated on Capitol Hill.

Navy support for the F-35C suffered in mid-March, when Navy Secretary Ray Mabus said the service is open to buying more Super Hornets.  The Navy had planned to stop buying Super Hornets in 2013 with the intention of replenishing the fighter fleet with JSFs starting in 2014.

Mabus told congressional lawmakers that he supports a new multiyear contract that would bring more than 100 new Super hornets into the fleet – and breathe new life into a Boeing production line with an unclear future.

That came just a week after Chief of Naval Operations Adm. Gary Roughead told Congress on March 11 that the Navy’s F-35C will not be ready for operations until 2016, rather than the previous target date of late 2014.  Original plans for about 2,000 hours of flight testing may extend to about 3,000 flight hours.

During the same week, cost estimates for the F-35 soared.  New calculations from the Government Accountability Office say the F-35s could cost roughly $112 million each, a large spike from the original estimates of about $50 million per plane in 2002.

Nevertheless, Roughead continues to voice strong support for the F-35.

“We’re committed to that. We’re moving forward to bring the fifth generation onto the aircraft carriers,” Roughead told lawmakers March 17.

Yet delays and cost problems with the F-35Cs can arrive to replace them.

That gap could morph into a permanent reduction in fighters if the Navy can’t expand its budget or find a cheaper plane, said Winslow Wheeler, a defense analyst with the Center for Defense Information, a Washington-based think tank.

“At some point, the Navy will have to bite the bullet and convert from the old ‘F/A-18s-are-too-old’ argument to the argument that the new F-35s are too expensive. I fully expect the Navy to bail out of the F-35 program.”

 

Fighter gap

The Navy is already facing a fighter gap, and experts estimate it could rise as high as 243 planes, or about 20 percent of the fleet, by its peak in about 2017.

Navy leader say they need 1,240 jets to meet the demands from combatant commanders in places like the Middle East, according to a brief sent to Congress in February.  The Navy’s inventory is 1,180 fighter jets, according to the brief, obtained by Navy Times.

Adding to the problem:  The wear and tear on the aging fleet of older F/A-18 A-D model Hornets was underscored again earlier in March, when 104 planes were grounded because of cracks found in some wing fasteners that connect the back part of the main wing to the fuselage.

Roughead told Congress in February about some measures the Navy will take to reduce the fighter gap.  Those include reducing the number of planes in each undeployed squadron from 12 to 10 and speeding the transition of five Hornet Squadrons to Super Hornets. 

‘Cascade’ effects

The abrupt rise in cost estimates for the F-35C has catapulted the fighter gap into more long-term crisis, said James Hasik, a defense analyst who runs his own consulting firm in Virginia.

“Before, there was talk of a ‘gap’ that would eventually close over time. But that presumed that they were going to get enough F-35Cs. Now it looks like the Navy can’t fill its carrier decks given the budgets they can possibly foresee in the future,” Hasik said.

If the Navy is unable to buy enough planes to fill out 10 full carrier air wings, then the Pentagon and Congress will begin to question the need for an 11-carrier fleet.

“That is the thing that is underlying it all,” said Bob Dunn, a retired vice admiral and former aviator. “The combatant commanders need that carrier support, and they’re not going to have it.”

A withering fighter fleet could undermine the Navy across all communities.

“That will scare the crap out of the admiralty,” Hasik said. “If you don’t have all those carriers, then people say, ‘Well, why do you have all those guided-missile cruisers if you don’t have to guard as many carriers?’

“This is not a frigate Navy.”

 

Gates Confident F-35 Program Will Stay On Track Despite Costs

(THE HILL 24 MAR 10) ... Roxana Tiron

Defense Secretary Robert Gates told defense appropriators on Wednesday that he was confident the troubled F-35 Joint Strike Fighter will stay on track after the Pentagon restructured the program.

Gates told the House Appropriations Committee that he did not expect any more delays or cost increases to the F-35.

The Pentagon is expected to formally notify Congress soon that the F-35’s cost has more than doubled.

Officials repeatedly have said that they have restructured the program to prevent it from derailing. They also say no other alternative exists to the F-35—the next-generation fighter jet for the U.S. military and several of its allies.

“Based on everything that I have seen, I have confidence that the range of cost estimates and timing that is being described and presented to me today will in fact be executed,” Gates said on Wednesday.

Gates has fired the previous F-35 program manager and withheld $614 million in potential fee awards from the contractor, Lockheed Martin, as part of the program’s restructuring.

Gates faulted the program office for having provided “overly rosy” forecasts.

A three-star military officer, Vice Adm. David Venlet, has been nominated to take over the program. Chairman of the Joint Chiefs of Staff, Adm. Mike Mullen, who also testified Wednesday, called Venlet “an exceptional individual.”

Gates also expressed frustration that one factory involved in the F-35 program was using only six percent of its floor space for the F-35 compared to other aircraft programs.

 “We're paying 70 percent of the overhead for that factory. I think we can fix that,” Gates told lawmakers.

In his example, Gates was not referring to Lockheed Martin, the prime contractor for the F-35, said Geoff Morrell, the Pentagon press secretary. Morrell said he could not disclose the name of the factory in question, citing proprietary concerns.

The restructured program adds 13 months and $2.8 billion to the development phase and slows the ramp-up to full production.  The Navy and the Air Force will begin fully operating the F-35 in 2016. The Marine Corps plans to start operating its version of the fighter in December 2012.

The Air Force, Navy and Marines each will have their own versions of the F-35.

Gates also told lawmakers that the Pentagon is looking at a third multiyear contract for Boeing’s F/A-18 E/F Super Hornets. No formal decision has been made yet in terms of accepting Boeing’s price offer for the multiyear deal, but such a move would alleviate several lawmakers’ concerns that the Navy and Marine Corps would face a shortfall of fighter jets in the coming years –particularly with the delays in the F-35 program. The Super Hornets are expected to share the carrier decks with the F-35 until 2030.

Meanwhile, Gates and other high-level Pentagon officials have dug in their heels against a backup engine for the F-35 and have offered their rationale and calculations to the defense committees. Gates reiterated on Wednesday that he would personally recommend that the president veto the defense bills over the alternate engine made by General Electric and Rolls Royce. The primary engine is built by Pratt & Whitney.

In an updated analysis, the Government Accountability Office found that the Pentagon would have to spend another $62.5 billion to cover the costs of completing the primary engine development; the procurement of 2,443 engines and supporting and sustaining production. An additional investment of between $4.5 billion to $5.7 billion may be required should the Pentagon continue competition between the two engines, the GAO found.

“Under certain assumptions, the additional costs of continuing the F136 alternate engine program could be recouped if competition were to generate approximately 10.1 to 12.6 percent savings over the life of the program,” Michael Sullivan, GAO’s director for acquisition and sourcing management said in prepared testimony before the House Armed Services Air and Land Forces subcommittee.

For example, Air Force data on the first four years of competition for engines on the F-16 fighter jets projected they would recoup at least that much, Sullivan said.

“Actual savings will ultimately depend on factors such as the number of aircraft actually purchased, the ratio of engines awarded to each contractor, and when the competition begins,” Sullivan said. “Competition may also provide non-quantifiable benefits with respect to better contractor responsiveness, technical innovation and improved operational readiness.”

  

 

Navy Chief Optimistic F-35 Will Enter Fleet On Schedule

The Navy's top officer on Tuesday expressed hope that the aircraft carrier-based version of the F-35 Joint Strike Fighter will not have the same prolonged delays that are plaguing the Air Force's variant of the stealthy jet.

During an interview at the Pentagon, Chief of Naval Operations Gary Roughead said the Navy is reviewing recent program changes, but he believes the Navy will benefit from being the last of the services to receive the F-35 and, ultimately, will stick close to its 2014 date for initial operational use.

"I think we, as a service, have the advantage in that we're third in line," Roughead said. "And I'm not looking at life through rose-colored glasses, but I think we're in a better position to perhaps stay close to our IOC [initial operational capability] because there's a lot of work being done to keep the other people on IOC and minimize that [delay]," he added.

As a result of delays in the program's development, Air Force Secretary Michael Donley has said his service's date for initial operational use will slip from FY13 to late calendar year 2015.

Donley said at a breakfast Tuesday that the decision to push back the Air Force's schedule came after the Defense Department reviewed independent estimates that pointed to significant schedule delays and price increases on the aircraft program.

"We're still working through all the implications of the program adjustments going forward," he said. "That work is ongoing."

Meanwhile, the Marine Corps, the first service to receive the fighters, plans to stick to its 2012 date for operational use, a spokesman said Tuesday. The service has not modernized its fighter fleet in more than a decade.

"We're really [eager] to have the Joint Strike Fighter come online when it's supposed to with the capacities that we believe it has," Marine Corps Commandant James Conway told the Senate Armed Services Committee on Thursday.

For FY11, the Pentagon is requesting $8.7 billion in procurement funding to buy 43 F-35s, plus $2.3 billion for continued research and development and $535 million for spare parts.

All told, the three services will buy more than 2,400 F-35s to replace aging F-16s, F-18s, AV-8s and A-10s, making the F-35 the largest program on the Pentagon's books.

"The JSF program is going to be a program that's going to be very, very closely scrutinized and watched and monitored," Roughead said. "There should be no question that we in the Navy have to get to that airplane."

As it awaits the F-35, the Navy is trying to manage a strike fighter shortfall, which Roughead estimates is at about 100 aircraft.

The admiral says he plans to mitigate the shortfall by breathing life into older F-18 Hornets through a service-life extension program, which would add a few years of operations to the planes. He dismissed any efforts to buy more of the popular F/A-18E/F Super Hornets than are now planned, saying that doing so is simply not affordable given other budget pressures.

"I think all too often people deal with specific programmatic issues and you get into, 'It's only this for that'," Roughead said. "You really do lose sight of ... where do you get that additional amount of money and what suffers as a result of that."

But the Navy still plans to buy 66 F/A-18E/F Super Hornets between FY10 and FY13. Those planes could become part of a multiyear procurement deal with maker Boeing Co. that also would include 58 EA-18G Growler electronic attack aircraft based on the same airframe.

On Monday, Deputy Defense Secretary William Lynn asked Congress for an extension of its March 1 deadline for a decision on a multiyear purchase agreement for F/A-18s, saying officials need to review the Boeing's offer to determine if a long-term commitment is cost effective.

Roughead said he supports a multiyear pact if the Pentagon can verify Boeing's claims that it will cut 10 percent off the costs of the jets. He also said he expects officials to decide on the matter quickly.

"I'm of the mind that we want to get it done fast and not to draw this out because if we're granted the extension I don't want to abuse that consideration that they've given us," he said.

 

 

Shift in IOCs?   - From AFA     

Despite assurance from Defense Secretary Robert Gates that the F-35 restructure would not alter initial operational capability dates for the Marine Corps (2012), Air Force (2013), and Navy (2014), Rep. Norm Dicks (D-Wash.) asked Feb. 24 at the House Appropriations defense panel hearing on combat aircraft, "how is that" given the 13-month development delay and slowed production? Gen. William Fraser has said Air Combat Command is rethinking IOC and what level of combat capability it requires. At the hearing, Rear Adm. David Philman acknowledged the Navy believes its IOC would slip "out towards '15, maybe later." However, he said the Marines, "are holding to their 2012 IOC," but F-35B testing will "prove that out." A day earlier, USAF Chief of Staff Gen. Norton Schwartz said it would be "late in calendar year 2015" before USAF would have "meaningful numbers," in the words of Rep. Larry Kissell (D-N.C.).

  

F-35s Delayed Until 2015

(PENSACOLA NEWS JOURNAL (FL) 02 MAR 10) ... Bart Jansen


 

WASHINGTON — The Air Force has acknowledged that it won’t have its first combat-ready F-35 fighters until late 2015, a two-year delay from when the planes were expected to start arriving at Eglin Air Force Base.

The service had hoped to have its first versions of the fighter in place in 2013. But delays in development of the plane’s technology prompted a 13-month slip in production that Defense Secretary Robert Gates announced Feb. 2.

In a Feb. 24 letter, Under Secretary of Defense Ashton Carter described delaying full production of the planes to November 2015.

In a carrot-and-stick approach, Carter is withholding $614 million in development fees to reward the contractor, Lockheed Martin, if the plane is developed as expected under the new time frame.

"2010 will be a critical year for the program, with delivery of test aircraft to Patuxent River and Edwards AFB, completion of hundreds of test flights, commencement of flight testing at Eglin AFB and other key milestones planned," Carter wrote to the secretaries of Air Force and Navy, which will both use the planes.

The plane is the next generation of fighter, which will be used by the Air Force, Navy and Marines. Ultimately, all three branches plan to buy 2,456 planes for $246 billion.

Under the previous schedule, Eglin anticipated hosting 59 of the planes in its first order and expected bringing 4,000 new military personnel to the base when the program became fully operational in 2016.

But the delay has prompted concerns in Congress.

“It seems like every year the program is slipping and slipping,” House Armed Services Chairman Ike Skelton, D-Mo., said at a Feb. 23 hearing. “Why aren't we ahead of the game on this?”

Air Force Secretary Michael Conley told lawmakers at that hearing that independent estimates found that, despite steps to reduce delays in the program from 30 months to 13 months, production would still be postponed.

“This does represent a slip in the program. It will cost us more money to get where we need to go. But this is the right thing to do,” Conley said. “So we have knocked down the production ramp. We have added dollars back in to develop to complete that work.”

  

Air Force: Joint Strike Fighter Delayed, Will Cost Much More Than Once Expected

(THE HILL 02 MAR 10) ... Roxana Tiron

The high-profile F-35 Joint Strike Fighter program will be delayed by two years and will be significantly over cost, Air Force Secretary Michael Donley said on Tuesday.

“We think it is probable that there will be a Nunn-McCurdy breach,” Donley said at a breakfast with defense reporters.

The so-called Nunn-McCurdy law requires the military services or the Pentagon leadership to tell Congress when the price tag of a program increases significantly. The Pentagon then must certify to Congress that the program is still worth pursuing.

Under a new weapons acquisition law, Nunn-McCurdy is triggered when the estimate of the total program cost grows by more than 25 percent or the program schedule for initial operational capability grows by more than 25 percent.

A breach of the Nunn-McCurdy law usually leads to a significant restructuring of a program, or could force the Pentagon to find an alternative to the offending program.

The F-35 is the Pentagon’s most expensive program to date, and one that Defense Secretary Robert Gates is banking on. The F-35 is designed to be the next-generation fighter for the Air Force, Navy and Marine Corps.

The program, under contract to Lockheed Martin, has suffered significant setbacks and has been the subject of continuing reviews by the Pentagon to tamp down delays and cost growth.

The Pentagon has been acting “in just about every respect as if the program were in a Nunn-McCurdy breach,” Donley said. “We’ve been taking all the mitigating and corrective action that we would take as if it were a Nunn-McCurdy breach.”

Donley said the Air Force remains “fully committed” to the program, but that the fighter jet will become operational in 2015, about two years later than initially planned.

Donley indicated that the Pentagon will stick by the F-35 because there is no other alternative and because it would be more expensive to stop the production lines and then restart them.

“We have not seen any technical show-stoppers” with the F-35, Donley said.

Donley’s comments dovetail with a memo issued last week by the Pentagon’s top weapons buyer, Ashton Carter, and first reported by The Hill. In the memo, Carter said the Pentagon's review of the F-35 so far had discovered no fundamental technology or manufacturing problems.

Carter also said a recent independent Pentagon assessment done by the so-called Joint Estimating Team found the development phase of the next-generation fighter jet will slip by 13 months, not 30 as initially determined by a previous assessment.

Carter also said the cost of the system’s development phase will increase by $2.8 billion. Carter directed the secretaries of the Air Force and Navy to budget according to the new estimate. He directed them to extend the development phase by 13 months and move the start of the full production phase to November 2015.

Carter also directed the Air Force and Navy acquisition officials, as well as the program manager for the F-35 program, to withhold $614 million in award fees to Lockheed Martin and revise the contract structure for the development and demonstration phase in such a manner that Lockheed is rewarded for “measurable progress.” Gates already announced earlier this month that he was planning to withhold the money from Lockheed.

“I remain convinced that close partnership and clear accountability are required with the JSF contractors,” Carter said in the memo.

Donley said Tuesday that the Pentagon is restructuring its contract with Lockheed Martin to ensure the company sticks to its earlier promises on the program and meets the schedule.

Also, Donley pointed out that the new program manager for the F-35 program would be a three-star officer and therefore would need to be confirmed by the Senate. But Donley said he was unclear when a new program manager would be named. Gates decided last month to remove Marine Corps Maj. Gen. David Heinz, who was running the F-35 program. 

Because of the two-year delay to 2015, Donley said the Air Force is considering extending the life of the F-16 fighter jets, also made by Lockheed, but he indicated that no final decisions had been made.

Meanwhile, Donley held his ground on another controversial issue: the backup engine for the F-35, which the Pentagon does not want but Congress has consistently funded over the past several years. Gates said that he would personally recommend that the president veto any defense bill that contains funds for the alternate engine made by General Electric and Rolls-Royce. The primary engine is built by Pratt & Whitney.

Donley said it was a difficult call to decide against a second engine for the F-35, because “we know Congress wants to support it” and because, in general, the Pentagon sees “the value of competition.” Donley said that the Pentagon could not see any “hard savings” later on from having two competing engines.

“It was too fuzzy in the out-years,” he said.

Rep. Ike Skelton (D-Mo.), the chairman of the House Armed Services Committee, last week blasted the Pentagon’s business rationale for deciding to scrap the General Electric-Rolls-Royce alternate engine. The primary engine is built by Pratt & Whitney.

“It appears that the department’s approach focuses on near-term costs to the exclusion of what the committee sees as the long-term benefits of this program,” Skelton said in a statement Thursday. “I remain unconvinced that terminating the alternate engine program makes sense.”

Skelton said the Pentagon’s analysis does not consider the risk that a single engine would present to national security because Lockheed Martin’s F-35 will account for 95 percent of the military’s fighter fleet.

“We cannot use near-sighted vision when long-term security is at stake,” Skelton said in the statement.

  

 

Carter To Brief F-35 Partners On Program Changes

(DEFENSE NEWS... John T. Bennett

U.S. defense acquisition chief Ashton Carter will huddle March 4 with other military procurement chiefs about Pentagon plans to restructure the multination F-35 fighter program, a Pentagon official says.

The high-level session will take place at prime contractor Lockheed Martin's F-35 production facility in Fort Worth, Texas, the official said.

During the "CEOs conference," as two sources called it, Carter will brief "his counterparts" from the eight nations that are Washington's official partners on the fifth-generation fighter effort, according to the Pentagon official.

Lockheed Martin spokesman Christian Geisel said the international meeting has been on the books since last April. Such sessions are held annually, he said.

Carter is set to explain to the other defense procurement chiefs in detail how the Pentagon has restructured the F-35 program, the official said. Also expected to be a part of the agenda is how DoD intends to revamp the program's annual budget, as well as details about Washington's adjusted yearly buy rate.

The United Kingdom is considered a "level one" partner on the effort, while Italy and the Netherlands are "level two partners," according to a Lockheed Martin fact sheet.

Australia, Canada, Denmark, Norway and Turkey are listed on the fact sheet as "level three" partners," and Israel and Singapore are "foreign military sales participants."

Senior Pentagon brass late last year began a comprehensive relook at the program after an internal DoD study group estimated additional F-35 cost growth and schedule slips were coming.

That soup-to-nuts review, led by Carter, spanned several months and culminated with changes to the program's budget, buy rate and overall schedule.

The F-35 is slated to constitute the bulk of the U.S. military's future fighter arsenal. The U.S. Air Force, Navy and Marines are each set to buy various models of the Lockheed-made warplane.

Attendees will "include Department of Defense, and U.S. industrial leaders and the senior leadership of international partner-country governments, militaries, and industries to receive the latest update of F-35 program status and to address any JSF program-related issues," Geisel said. "The attendee list, which will include officials from the U.S. services, "has been consistent from year to year," he added.

"Lockheed Martin and the JSF Program Office will present several joint program-update briefings on a variety of topics," Geisel said.

 

U.S. Marines May Get Some Non-STOVL F-35s

(DEFENSE NEWS 03 MAR 10) ... John Reed

The U.S. Marines may get some carrier-borne F-35Cs with their short-takeoff-and-vertical-landing F-35Bs, a senior U.S. Navy aviation official said March 3.

The Marine Corps will start flying F-35Bs from amphibious assault ships in 2012, according to a Navy official. The Navy Department is considering giving the Corps some of the catapult-ready F-35Cs so they can fly from aircraft carriers. (Andy Wolfe / Lockheed Martin) The Navy Department, which is planning to buy a total of 680 Lockheed Martin Lightning II strike fighters for the two services, has not yet decided how many of each variant will go to each branch, said Rear Adm. David "Deke" Philman, the Navy staff's air warfare director.

Right now, the Marines are to start flying F-35Bs from amphibious assault ships in 2012, Philbin said.

Department officials are considering giving the Corps some of the catapult-ready F-35Cs so they can fly from aircraft carriers, he said.

"The question of the mix is, 'Will the Marines fly tailhook versions'" or even B-models from conventional aircraft carriers, Philman said during a speech in Arlington, Va.

After the speech, he told reporters that the Navy is looking at "what is the requirement for the Navy, what is the requirement for the Marine Corps and how does that fit into the greater DON [Department of the Navy] construct."

Recent trouble with the entire F-35 program has led the sea service to re-evaluate the planned initial operational capability date of 2014, Philman said.

  

DoD Comptroller: Further F-35 Cost Growth Jeopardizes Buy Quantity

(DEFENSE DAILY 04 MAR 10) ... Marina Malenic


 

Any further cost growth in the Defense Department's marquee tactical aircraft development program will result in cuts to the number of F-35 Joint Strike Fighter (JSF) aircraft the department is able to purchase, the Pentagon's top financial official said yesterday.

"I think we are to the point in our budgetary situation where, if there is unanticipated cost growth, we will have to accommodate it by reducing the buy," said Undersecretary of Defense Robert Hale, the Pentagon comptroller.

The Pentagon's program of record has until recently called for 2,456 of the fighters in three variants for the Air Force, Navy and Marine Corps. Last week, top Pentagon weapons buyer Ashton Carter authorized a restructure of the program that reduces that number by 122 aircraft. A 13-month extension of the development phase of the program was also authorized.

Hale, however, said that additional cost growth is not out of the question and that any such growth will come out of the buy quantity.

"I wouldn't raise my right hand and swear that there won't be any future cost growth," he said. "I don't see us getting a lot of added funding, and therefore I don't see large JSF funding increases."

He noted that officials at Lockheed Martin [LMT], the program's prime contractor, have said that "they can build more planes with the money that we have budgeted than we think" they can. "That would be great," he added.

Hale was speaking at a Precision Strike Association conference in Arlington, Va.

The Air Force in recent weeks acknowledged that problems in the program mean that the F-35 conventional take-off and landing (CTOL) A-model likely will not be ready for deployment until "late in calendar year 2015," significantly pushing back the service's anticipated Fiscal Year 2013 initial operating capability (IOC) date.

Rear Adm. David Philman, the Navy's director of air warfare, said yesterday that the Marine Corps is "holding to 2012" for IOC of the short take-off and vertical landing (STOVL) B-model of the aircraft. Philman said the Navy's IOC date for the carrier variant C-model will be "event driven" and will depend on sufficient quantities of the aircraft with Block 3 software being delivered and tested.

"We have on the record 2014 as our IOC, and there's no change to that, but it's very clear that that is going to be pressurized," he said. "It's 2014, but that is going to have to be addressed based on the pressures in the program."

Late last year, the Pentagon acknowledged that its special assessment team once again found that the F-35 program is at risk of significant cost increases. The Joint Estimating Team's latest cost projection for the program contains similar numbers to last year's JET estimate. Both warn that the $300 billion program may end up costing the government some $16.6 billion more than budgeted.

Defense Secretary Robert Gates last month announced an F-35 program shake-up, with a new three-star program manager still pending appointment. Lockheed Martin was also punished, with the department withholding $614 million in fees. The program is also in danger of breaching a congressionally mandated cost-growth cap in coming weeks.

 


 

 Lockheed Delays On F-35 Bring Lowest Fee Since 2007

(BLOOMBERG NEWS 03 MAR 10) ... Tony Capaccio


 

Lockheed Martin Corp.’s latest performance fee from the government on the F-35 Joint Strike Fighter, its largest program, is the lowest since late 2007 because of delays in production and aircraft deliveries.

Lockheed, the world’s largest defense contractor, earned 69.9 percent of the available fee for the six-month period ending Oct. 31 -- $48.5 million of a potential $69.4 million, according to Defense Department figures.

Lockheed can’t earn back the remaining $20.9 million because it will be used to reduce program costs, said Cheryl Limrick, Pentagon spokeswoman for the program.

The fee for performance is Lockheed’s only profit in the program’s development phase, which has now been extended 13 months to November 2015. Defense Secretary Robert Gates said Feb. 1 that all fees remaining on this phase, $614 million, will be withheld because “key goals and benchmarks were not met.”

“The taxpayer should not have to bear the entire burden of getting the JSF program back on track,” he said. Some of the money will be used to get the program back on schedule. To earn the rest, Lockheed will have to meet revised program targets.

The F-35 is the military’s next-generation fighter. It is designed for missions including bombing and air-to-air combat, and it will be used by the Air Force, Navy and Marine Corps. It will replace aircraft including F-16s and A-10s, as well as Harrier aircraft flown by the Marines and the U.K.

Bethesda, Maryland-based Lockheed’s lowest previous award was 67.3 percent in October 2007. The company earned its highest fees -- 90 percent or more -- before 2006.

Cost Increase

The program’s projected $298 billion cost may increase, Air Force Secretary Michael Donley told lawmakers last week. An increase of 15 percent would force the Pentagon to review the program and certify to Congress that it’s essential to national security.

Donley also said the delays mean the service won’t field its first combat-ready unit of F-35s until 2015, two years late. Planned delivery of the first units to the Marine Corps in 2012 and the Navy in 2014 are still projected to be on time.

The Pentagon -- with prodding from Congress -- has tightened performance fee payments since the U.S. Government Accountability Office in a December 2005 report criticized it for rewarding substandard performance. Gates has ordered officials to sharpen scrutiny of weapons programs and hold contractors more accountable.

Six Months of Delays

Lockheed’s reduced fee came after a six-month period when production delays led to late plane deliveries that resulted in test jets flying only about 10 percent of their planned flights, according to an October assessment by the Defense Contract Management Agency and the Pentagon’s testing office.

The agency’s monthly reports last year are a chronicle of the woes the program has faced:

April: “Late parts have been extremely disruptive to assembly operations.”

May: Shortages of parts are “resulting in a massive amount” of work that should have been completed early in the assembly process and is now being transferred to the final stage.

July: The test-flight schedule, which has been extended six times since the development program began in October 2001, “is significantly behind” and “does not appear to be achievable.”

Lockheed Comment

Lockheed Martin spokesman John Kent said “production trends indicate that we will be back on schedule during 2011.”

“Labor hours required to complete each aircraft have dropped by half and the time required to manufacture an F-35 has dropped by one third,” he said in an e-mailed statement.

“Parts shortages have gone from 300 on the first aircraft to 16 on the most recent plane rolled out and parts availability continues to improve as the supply chain gears up for higher production rates,” Kent said.

Lockheed Martin’s fees in the four grading periods since the October 2007 low fluctuated from 77.1 percent to 87.5 percent to 79.5 percent and 69.9 percent, according to the figures.

Overall, Lockheed Martin since 2002 has been paid 82.1 percent of eligible fee, or $1.528 billion of $1.862 billion, according to the figures.

Lockheed Martin is the lead contractor on the program. Major subcontractors include BAE Systems Plc and Northrop Grumman Corp.

Lockheed rose 14 cents to $79.35 at 11:57 a.m. in New York Stock Exchange composite trading. The shares dropped 10 percent in 2009.


 

F35 Program Restructure  - From AFA


 

From 30 to 13: The sweeping restructure of the F-35 strike fighter program will turn what might have been a 30-month schedule slip into just 13 months, Pentagon acquisition czar Ash Carter confirmed Thursday during a media telecon. Carter said prime contractor Lockheed Martin could get back "some" of the $614 million in award fees being withheld due to schedule slips, but he wouldn't say exactly how much, since this is a negotiating point. Lockheed would have to share some of the costs of getting the program back, he said. Having just completed an F-35 summit at Lockheed's facility in Fort Worth, Tex., Carter said representatives of the F-35 partner nations are on board with the changes and recognize they will "add some cost to initial aircraft," but stave off bigger problems. None of the partners or US military services are backing off their planned F-35 buys, he said.

 

 

F-35 Hovers For First Time


 

Hanging about 150 feet in the air, the F-35B short-takeoff, vertical-landing (STOVL) stealth fighter hovered at zero airspeed for the first time March 17.

"The aircraft hovered for about 96 seconds," said Chris Geisel, a spokesman for Lockheed Martin. "It then went up and down and turned right and left to check maneuverability before coming in for a slow 70 knot landing."

Graham Tomlinson, F-35 lead STOVL pilot, slowed the aircraft in flight from 200 knots, first to 60 knots, then to zero.

The tests are being conducted at Naval Air Station Patuxent River, Md. The hover flight took place on the second of four flights, or sorties, on March 17, each flight demonstrating different aspects of the jet's maneuverability, vertical thrust, stability and control. The fourth sortie featured a short takeoff in STOVL mode, Geisel said, where the aircraft took off at 100 knots while using less than 1,000 feet of runway.

Next up in the test program, Geisel said, is a vertical landing.

The F-35B is being developed for use by the U.S. Marine Corps, where it will replace the aging fleet of AV-8B Harrier II jump jets. The aircraft is intended to operate from ships and unimproved or short airfields on land.

 

 GAO Warns More F-35 Cost And Schedule Hiccups Likely

(DEFENSE DAILY 22 MAR 10) ... Emelie Rutherford


 

Government auditors' latest assessment of the F-35 Joint Strike Fighter program warns additional cost growth and schedule extensions, beyond those recently unveiled, are likely.

The Government Accountability Office's (GAO's) sixth annual F-35 report, released last Friday, reflects much but not all of the latest cost data emerging from the Pentagon on the effort to buy 2,443 jet fighters for the Air Force, Navy, and Marine Corps.

The program's total procurement cost has risen to a much as $232 billion, in 2002 dollars, compared to $143 billion back in late 2001, according to a F-35 "unit cost report" for March the Pentagon also released last Friday.

Pentagon officials are planning to recertify the Lockheed Martin [LMT] aircraft effort, a step required under the Nunn-McCurdy statute because of cost overruns; however, congressional aides said Congress had not been officially notified of the Nunn-McCurdy cost breach as of last Friday.

The F-35's average-procurement-unit cost has risen to as high as $95 million in 2002 dollars, a growth of up to 89 percent since the program received milestone B approval in 2001, according to the Pentagon.

Air Force Secretary Michael Donley will officially notify Congress of the Nunn-McCurdy cost breach before April 1 and a required package recertifying the F-35 as a vital program that must continue will be sent to Capitol Hill around early June, Pentagon officials told the Senate Armed Services Committee (SASC) March 11.

The GAO's Michael Sullivan, director of acquisition and sourcing management, at that March 11 hearing previewed his office's new report, titled "Additional Costs and Delays Risk Not Meeting Warfighter Requirements on Time."

The report says the Pentagon's recent restructuring of the F-35 program--which extends its development phase and reduces the number of production aircraft purchased in the early years--"should improve outcomes and provide more realistic cost and schedule estimates."

Yet it warns, "Restructuring is not finished and further cost growth and schedule extensions are likely."

The report cites concerns with "substantial overlap of development, test, and production activities while (the Defense Department) continues to push ahead and invest in large quantities of production aircraft before variant designs are proven and system performance verified."

The GAO reiterates its call for "adopting a more evolutionary, incremental strategy that delivers proven and operationally suitable capabilities when available, but acknowledges that more time is needed to deliver the full capabilities."

Multiple "testing and technical challenges," the GAO report states, "will likely add more costs and time to development, affecting delivery of warfighter requirements and hampering start up of pilot and maintainer training and initial operational testing."

The GAO recommends conducting a comprehensive and independent assessment of F-35 costs and schedule that goes beyond the analysis already done by the Pentagon's Joint Estimating Team, Independent Manufacturing Review Team, Joint Assessment Team, and Naval Air Systems Command.

"While the independent cost estimate completed by the Joint Estimating Team is a very good start, it by design focused only on the near term," the GAO says. "Until a complete and comprehensive cost estimate that provides cost through completion of procurement and includes a more complete estimate of military construction funding requirements is formally adopted as the new program of record, JSF program costs will remain unclear."

"Tying annual investments more directly to demonstrated progress in developing, testing, and manufacturing aircraft would be a prudent fiscal measure," it adds.

The Pentagon, in response to an draft of the new GAO report, says it concurs with the GAO's recommendation for such a cost and schedule estimate.

 

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