US Air Force LRS-B Bomber Thread - the B-21 Raider

Brumby

Major

Northrop Bonus for Mysterious Bomber Weighed Toward Contract End
Please, Log in or Register to view URLs content!

Most of Northrop Grumman Corp.’s bonus fee to develop the next U.S. bomber would be earned in the later stages of the $23.5 billion development phase, providing an incentive to control costs to taxpayers and stay on schedule, Air Force Secretary Deborah James said.

James disclosed the fee structure -- but not the amount at stake -- for the first time during a hearing Thursday by the Senate Armed Services Committee. Chairman John McCain has criticized the contract as a bad deal, saying any cost overruns would be absorbed by the taxpayer. The Arizona Republican said last week he might seek language in the fiscal 2017 defense bill to block funding for the “cost-plus” development contract.

“In order to get your incentives you have to meet certain performance milestones,” James said in an interview after the hearing. “If you don’t meet the milestones you lose all or a part of your fee. The bulk of it is back-ended,” meaning there is an incentive to get through development and on to production.

“There is no incentive to drag out” the development phase, James added.

There is no satisfactory solution for complex projects in terms of arresting unwarranted cost growth. Unfortunately the USAF don't have a good track record in cost containment with many of its projects. There are pros and cons of each type of contractual arrangement. I am not familiar with the bid terms, but if NG won on the basis of cost plus, I don't think McCain can stop it at this stage. Ethically and responsibly he should have stopped the bidding process on a cost plus basis if it was a show stopper to him and not after the event. Having said that I can understand why he has a major issue with it. Cost plus basically means potentially the risk of the cost base growing rest with the USAF and not NG. In fact there is no incentive for NG to stop the cost base from growing (without knowing the actual terms) and traditionally that had been the case with many of the USAF projects. In project management, the key is leadership in containing scope, restricting modifications and being proactive in managing your key partners. All these are dependent on appointing someone to head the program who is a heavy weight and reports to the very top of the chain. Typically what happens is every senior general or politician who has a bite at the program will attempt to incorporate their own agenda onto the program. You need someone who carries a level of authority to push back.
 
...

There is no satisfactory solution for complex projects in terms of arresting unwarranted cost growth. ...
don't want to go off-topic so
The US Navy’s use of fixed-price incentive contracts came under fire today with the release of a new report claiming the service is paying shipbuilders a profit to correct construction mistakes made by the builders.
etc. etc. according to
Please, Log in or Register to view URLs content!

https://www.sinodefenceforum.com/us-military-news-reports-data-etc.t1547/page-525#post-391279
 

Brumby

Major
don't want to go off-topic so
etc. etc. according to
Please, Log in or Register to view URLs content!

https://www.sinodefenceforum.com/us-military-news-reports-data-etc.t1547/page-525#post-391279
I skimmed through the GAO report on this issue. For example, the contract value on the DDG was for $603 million and the rectification needed was about $2.3 million with a 1/3 split to the builder. In terms of materiality it is negligible. I agree that enforcement on contract may be lax on the USN. The issue raised by GAO is about enforcement over guaranty or warranty but the LRSB is over terms of contractual arrangement that will effectively manage cost within program budget. The major complain over non cost plus is that complex projects like LRSB simply has too many new technologies that makes it impossible to forecast what is needed to bring R & D into application. There is just too much risk for commercial firms to take on. it is counter productive and dis-incentivise development effort to its full potential. Maybe it is just BS but I don't have industry knowledge to reasonably judge.
 

Brumby

Major
I've read (and posted maybe two years ago) the risk of the fixed-cost is a company will fix it then really high LOL

A fixed price contract poses two kinds of risk. The first type is self evident. If there are many unknowns due to complexities of the program, the obvious self protective mechanism is to built in multi layers of fat as a contingent plan against unanticipated problems. If every bidder takes the same approach, then invariably the program cost can become highly inflated even with competitive bidding. The second type of risk is actually the opposite. A potential bidder might be too aggressive with pricing and actually underestimates the complexities involved and win the contract but fails to deliver and eventually needing to be bailed out at a cost to the government.

There are no good solutions. Just the constant trade off between risk and cost management.
 
Thursday at 4:11 PM

LOL again:
Air Force Defends B-21 on Hill, but McCain Still 'Concerned'

source:
Please, Log in or Register to view URLs content!
counter-strike:
Please, Log in or Register to view URLs content!

ue Payton was the top acquisition official in the Air Force during one of the most difficult times in the service’s history, right after her predecessor Darleen Druyun was sent to prison and Boeing’s CEO was forced out over unethical and illegal activities connected with the tanker contract. Payton labored mightily then to build an Air Force acquisition system that boasted “transparency and integrity,” so she knows how hard it can be to shepherd a large and hard-fought contract through the political and military minefields. In the following op-ed, Payton offers her thoughts on why the current Pentagon and Air Force leadership fared well in awarding the B-21 contract for 100 bombers to Northrop Grumman.

Congratulations to Air Force Secretary Deborah Lee James and Chief of Staff Gen. Mark Welsh, the leadership in SAF/AQ, the Air Force Rapid Capabilities Office and the dozens of dedicated source selection evaluation team members who sacrificed countless hours to “get it right” for the Long Range Strike Bomber contract award!

And a “good work” to the Air Force cost estimators, the Cost-Assessment and Program Evaluation (CAPE) team, Air Force contracting officers and the Air Force legal team for building a B-21 contract that stood up to the scrutiny of the Government Accountability Office.

The Air Force awarded Northrop Grumman the contract to build the nation’s new Long Range Strike Bomber (LRS-B) in October — a contract that was decades in the making. From 2006 to 2009, when I was head of Air Force Acquisition, the Air Force Headquarters Staff met regularly with the very best acquisition and air combat personnel to perform the foundational work of acquisition strategy and requirements development for our next bomber. Over several presidential administrations, stable technology risk reduction investments in key areas such as an open mission systems architecture, were defined by joint government-industry teams for what we then called the Next Generation Bomber.

OSD acquisition and the Air Force got this one right even though leadership in the Air Force and DoD changed. Why? Focus on this critical military weapon system and risk reduction efforts of nearly $2 billion remained laser sharp. It is important to note that, in recent years, the Air Force legal team attracted to government service much needed personnel from the private sector. This talent brought to the military experience from years of work in the US Court of Federal Claims and US Court of Appeals, as well as invaluable experience representing industry in bid protest litigation.

Congratulations to Northrop Grumman who submitted a “protest proof” proposal substantiated with proven results from technical risk reduction efforts, backed up by their highly competent legal team.

Our Air Force/Northrop Grumman Team must now immediately begin the already late-to-need B-21 development program and rapidly deliver the critical operational performance on time and on cost — without further delay and more litigation. The GAO upheld the Air Force B-21 contract award and that is a much-needed win for the acquisition proposal process. But it is only the first critical step to program success.

It is now up to the Air Force Secretary and Chief of Staff to champion the robust early stages of the B-21 program by budgeting necessary funding and giving full authority to the PEO and Program Manager for all aspects of program success, including all program support, contracting, finance and especially engineering workforce assignments.

In a recently published Air Force Study Workshop, “Owning the Technical Baseline For Acquisition Programs,” former NASA Administrator Mike Griffin says: “Managing an engineering development program requires engineering talent because requirements cannot be written so carefully as to ensure program success and contractor performance.”

Trust between the Air Force and Northrop Grumman LRS-B Team is essential to delivering our next generation bomber and can only be established through mutual respect for the technical talent assigned to these critical government and industry teams.

The B-21, with its highly survivable ability to penetrate and operate in a future Anti-Access, Area Denial (A2/AD) environment will be a viable counter to our adversaries’ future evolving threats of advanced air defense systems and highly capable surface to air missiles. The award to Northrop Grumman sets the stage for the successful development and production of the B-21. Current and future Air Force leaders and presidential administrations must provide the strong support needed over the next decade to achieve success.

Sue Payton is former assistant Air Force Secretary for acquisition, research and development. Formerly at Lockheed Martin, she now serves as president of SCI Aerospace, Inc.
source:
Please, Log in or Register to view URLs content!
 

Bernard

Junior Member
More information on the B-21st bomber. Keeping it secret! It sounds like the first new major project of Cold War 2 for the U.S!

Pratt Is Making B-21 Engines; Don’t Expect More Tech Info

By
Please, Log in or Register to view URLs content!
on March 07, 2016 at 6:30 PM


Please, Log in or Register to view URLs content!


PENTAGON: Pratt and Whitney, as many assumed, will design and build the engines for the
Please, Log in or Register to view URLs content!
, leaving B-2 bomber engine maker
Please, Log in or Register to view URLs content!
out in the cold.

Air Fore Secretary
Please, Log in or Register to view URLs content!
‘ announcement of Pratt’s role, as well as that of six other subcontractors working with prime
Please, Log in or Register to view URLs content!
, during the annual State of the Air Force press conference revealed virtually nothing more about the program. She made a point of noting the news was being released because the companies had completed their security protection plans for their work on the bomber. So I asked her which was more important to the disclosure of information about the bomber: maintaining strategic ambiguity so that
Please, Log in or Register to view URLs content!
would find it difficult to design a counter to the airplane, or the security measures being put in place.

IMG_0013-300x189.jpg

Air Force Secretary Deborah Lee James and Chief of Staff Gen. Mark Welsh

James made it clear that keeping the bomber’s capabilities a secret from Russia and China was the driving force behind the service’s decision to classify the great majority of information about the program. Will we learn much about what the plane can do?

“I don’t think you’re going to know for years much more about the technology,” James said. The secretary contrasted the approach they’ve taken with the B-21 to
Please, Log in or Register to view URLs content!
, which was shrouded in complete secrecy until November 1988 when the world was allowed to see the front of the aircraft in Palmdale, Calif, at Air Force Plant 42.

“The B-2 remained in the shadows for too long, it remained classified — too many details remained classified too long,” James said. (While the secretary didn’t say so, the extreme secrecy made it easier for B-2 opponents to characterize it as a
Please, Log in or Register to view URLs content!
). “In the case of the B-21, we are leaning forward, and we are trying to be more transparent, and we are going to continue to do so.”

B-2s-at-Eglin-AFB-050406-F-1740G-009-300x199.jpg

10 percent of the nation’s B-2 bomber fleet — totaling just 20 aircraft — is in this photo.

Perhaps the most interesting tidbit came from Lt. Gen. Arnold Bunche, who followed James and Air Force Chief of Staff
Please, Log in or Register to view URLs content!
at the podium. I asked him if he could shed some light on what Frank Kendall, head of Pentagon acquisition, had meant last April when he said that
Please, Log in or Register to view URLs content!
. Bunche said he thought this referred to the plane’s open missions system architecture. It will allow the Air Force to “more cost effectively and in a more timely manner integrate new technologies into the bombers.” So the fleet of 100 probably won’t be built by anyone but Northrop, but other companies will get to compete to build new systems for the bombers.

Here’s the list of B-21 subcontractors and the locations where B-21 work will be carried out:

Please, Log in or Register to view URLs content!
in East Hartford, Conn.
Please, Log in or Register to view URLs content!
in Nashua, NH
Please, Log in or Register to view URLs content!
in St. Louis, Mo.
Please, Log in or Register to view URLs content!
in Sedro-Woolley, Wash.
Please, Log in or Register to view URLs content!
in Clearfield, Utah and Dayton, Ohio
Please, Log in or Register to view URLs content!
in Cedar Rapids, Iowa
Please, Log in or Register to view URLs content!
in Wichita, Kansas


Please, Log in or Register to view URLs content!
 
counter-strike:
Please, Log in or Register to view URLs content!


source:
Please, Log in or Register to view URLs content!
another counter-strike:
Air Force Secretary Warns of Consequences if McCain Blocks B-21
As Sen. John McCain continues his crusade against the Air Force’s next-generation B-21 bomber, service secretary Deborah Lee James is warning of the cost in both dollars and time of terminating the contract.

“It is always possible to terminate a contract — you terminate, you pay fees to terminate, you can rebid it, which of course takes more money and time,” James said March 7 during a briefing at the Pentagon. “So these things are always possible. We certainly hope it won’t come to that.”

James’ statement was a pointed answer to McCain’s recent pledge to block funding for the Air Force’s new bomber so long as it is procured using a cost-plus contract — a contract vehicle he has railed against in the past.

“I am saying I will not authorize a program that has a cost-plus contract — and I told them that,” McCain, R-Ariz., said at a Defense Writer’s Group breakfast in Washingtonlate last month.

Told the Air Force has already signed a contract with Northrop Grumman for the engineering, manufacturing and development phase of the program, McCain scoffed: “That’s fine with me, they can do whatever the hell they want — we have to authorize procurement."

If McCain succeeds in cutting off funds for the B-21, the Air Force may be forced to start from scratch on a new competition for a long-range strike bomber capability.

Top Air Force officials, including the secretary, took to Capitol Hill to defend their acquisition strategy last week in closed and open briefings to various committees, including McCain’s Senate Armed Services Committee. However, the meetings did little to appease the Arizona Republican’s concerns, a spokesman said last week.

"Senator McCain continues to be concerned about the cost-plus structure of the B-21 development contract," McCain’s office told Defense News on March 2. "He will carefully consider his legislative options to address these concerns."

The Air Force will continue to stress the nation’s need for a B-21 bomber in continuing classified and unclassified sessions on Capitol Hill, James said March 7.

“We just continue to tell the story, so I don’t have any assurances of anything [from McCain] other than this is a capability we need for the country,” James said. “We put very thoughtful process together looking to those successes as well as to programs that were not successful in the past, and we have crafted a good strategy we believe going forward.”

Lt. Gen. Arnie Bunch, the Air Force’s deputy assistant secretary for acquisition, gave additional details on the B-21 contracting structure after James’ remarks. The cost-plus EMD contract has been set up with incentives for the contractor to collect fees based on meeting cost and schedule goals, Bunch told reporters. The schedule incentive is actually the more heavily weighted of the two, he noted.

“It’s based on meeting event dates and it’s based on delivering capabilities and meeting requirements, not just getting to a date,” Bunch said. “If the contractor doesn’t meet it on the expected date or the set date, then the incentive fee, or the profit, goes down until it goes to zero.”

The incentive fees increase toward the end of the EMD effort, so the contractor is motivated to finish the program as soon as is practical, James said.

The Air Force will share more information about the secretive B-21 bomber in the coming months in an attempt to shore up support for the costly program, officials said March 7.
source:
Please, Log in or Register to view URLs content!
 

Air Force Brat

Brigadier
Super Moderator
another counter-strike:
Air Force Secretary Warns of Consequences if McCain Blocks B-21

source:
Please, Log in or Register to view URLs content!

Scary Huh??? YAWN! AHHHHH! yeah lets all hear it for the "LITTLE, Really Sneaky Bomber", kinda a glorified cruise missle with seats and wings, oh boy??? this will suck the life outta the 6th gen for the next 20 years??? "Lawyer Proof??? don't bet on it???
 
Top