Our Army at War - Relevant and Ready US Army CH-47 Foreign Military Sales Efforts Briefing to:
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Transcript of Our Army at War - Relevant and Ready US Army CH-47 Foreign Military Sales Efforts Briefing to:
Our Army at War - Relevant and Ready
US Army CH-47 Foreign Military Sales Efforts
Briefing to:
Our Army at War - Relevant and Ready
FMS Cases In Work
• Egypt LOA for T55-GA-714A Engines is being developed, expected to be implemented in the near future
• P&A Requests from Greece for:
– Complete upgrade of their nine direct commercial sale aircraft to newer 7 aircraft configuration
– Upgrade of their nine direct commercial aircraft to same Aircraft Survivability Equipment as their newer seven aircraft.
Our Army at War - Relevant and Ready
Current Egyptian FMS Cases
• An Egyptian FMS case to upgrade the remaining 3 CH-47C to CH-47D has been approved
– FMS Case EG-B-UWN
• The EAF has 16 other aircraft that fall under 3 FMS Cases All aircraft under these FMS cases have been delivered
– EG-B-JBK – 4 CH-47D aircraft – EG-B-JBN – 6 aircraft upgraded CH-47C to D– EG-B-UUW – 6 aircraft upgraded CH-47C to D
Our Army at War - Relevant and Ready
Other USG supported FMS Cases
• The Greek Army has 16 CH-47D aircraft – Seven new build CH-47D purchased under FMS case GR-B-JBK
– Nine were purchased as a Direct Commercial Sale
• The Taiwan Army has 9 CH-47SD aircraft– Aircraft were purchased under FMS case TW-B-YUX
• The Netherlands Air Force has a technical support case for their CH-47 aircraft, FMS case NE-B-VXE
• The Australian Defense Force has a technical support case for their CH-47 aircraft, FMS case AT-B-ZYG
Our Army at War - Relevant and Ready
Other Countries Expressing Interest in CH-47 Aircraft
• Other countries expressing interest in using the USG to purchase CH-47 aircraft are:
– Jordan– Columbia– Algeria– Turkey– Italy– Czech Republic– Chile
– Netherlands (Upgrade of their 13 Glass Cockpit CH-47D aircraft to F Models and additional purchase of 5 CH-47F)
– Argentina (upgrade of their existing Aircraft)
Our Army at War - Relevant and Ready
Cargo Helicopter Airframe Procurement Support
• IMMEDIATE OPPORTUNITY… Foreign Customers (Jordan, Turkey, Argentina and Columbia ) have expressed interest in Airframes
• Opportunity… Leveraging New Production
• There is foreign demand for CH-47Ds (estimated 40+)
Situation…
CHAPS Initiative…• Sell CH-47Ds via Exchange/Sales and FMS programs
• Leverage proceeds with Remanufacturing $$$ to procure new CH-47Fs at no additional cost to the Army/DoD. Ratio: 1:1
Our Army at War - Relevant and Ready
CHAPS
• Explore CH-47D sales to leverage new procurement
- USG CH-47D sale via FMS, and reprogram funds for new
CH-47Fs
Study…
Our Army at War - Relevant and Ready
CHAPS Study Results…
USG CH-47D sale via FMS, and reprogram funds for new CH-47Fs
Extensive coordination at HQDA, OSD, and Congress required Concept approval… Army Acquisition Executive (AAE) Congressional Action Required (Annual $$$ Reprogramming) Sales via standard FMS processes/procedures Contracting flexibility required (FMS provisions planned for F-Model
contracts) Timing and Integration of FMS sales with new production challenging (workable)
Our Army at War - Relevant and Ready
Potential CHAPS Market
US Army - Boeing Assessment: 30+ Aircraft
Africa:• Morocco 9• Egypt 3-5• Ghana 4
Middle East:• Israel 10-20• Jordan 8• UAE 4-12• Saudi Arabia 4-10• Kuwait 4• Oman 4South America:
• Argentina 1-5• Brazil 4• Chile 6
AsiaPacific:• India 6-30 • Pakistan 4- 6 • Thailand 6• Malaysia 4• Taiwan NFA 4- 6• Philippines 6
Europe:• Turkey 4-10• Spain 1- 4• Poland 4– 6• Czech Rep. 4• Hungary 4• France 4- 6• Germany 4- 6
Our Army at War - Relevant and Ready
Jordan - Chief of Staff, Jordanian Air Force approached Boeing
at the Asian Aerospace Show expressing interest in up to eight CH-47Ds ( 8 airframes )
Argentina - Joint Staff and Army continue to express interest in CH-47Ds for UN Scientific mission and general heavy-lift.
( 2-6 airframes )
Turkey - Boeing states that potential CHAPS type activity could be a break-through solution to the long-desired Turkish heavy-lift requirement ( 4-10 airframes )
Columbia - Contact with USAF Mission, Columbia indicates a Letter of Interest in CH-47Ds is in process ( 4 airframes )
IMMEDIATE OPPORTUNITY
Cargo Helicopter Airframe Procurement Support
Our Army at War - Relevant and Ready
1. Memo to DA G-4… Army Requests Exchange/Sale Waiver to Exchange/Sell CH-74D List of CH-47s and recommended pricing
1. Memo to DA G-4… Army Requests Exchange/Sale Waiver to Exchange/Sell CH-74D List of CH-47s and recommended pricing
Cargo Airframe Procurement Support Initiative
4. $$$ Credit & Use… Contractor credits $$$ to new F-Model procurement / New F-Model Start
5. Contractor Direct Commercial Sale
4. $$$ Credit & Use… Contractor credits $$$ to new F-Model procurement / New F-Model Start
5. Contractor Direct Commercial Sale
3. GSA… GSA Aircraft Waiver (staffed/approved)
4. PM Cargo… Conduct Exchange/Sale w/Contractor
3. GSA… GSA Aircraft Waiver (staffed/approved)
4. PM Cargo… Conduct Exchange/Sale w/Contractor
2. HQDA Staffing… G-4 Coordinates DA Staffing (G-3, G-8, DASA(DEC), OGC, etc.) AR 725-5 Waiver approved & transmittal to GSA
2. HQDA Staffing… G-4 Coordinates DA Staffing (G-3, G-8, DASA(DEC), OGC, etc.) AR 725-5 Waiver approved & transmittal to GSA
General Approach… Focus on Exchange/Sales
Our Army at War - Relevant and Ready
Cargo Helicopter Airframe Procurement Support
Reconditioning as required ( Commercial or FMS )
Process Overview…
PM PM F Model
AAE FRA Aircraft Exchange New F Model F Model Briefing Request Waiver Sale Start Delivery Title to US Contractor $$$ Credited to New Production)
$ PM F Model
Delivery
Integrated
Exchange & Sales and
FMS/Commercial Process
PM US Contractor
HQDA, DoD, DoS Coordination
&Staffing
HQDA, DoD, DoS Coordination
&Staffing
G3G-4G-8ASA (FM)DASA(DEC)USASACDSCAOGCOCL DOS
E&S Proceeds may be used for procurement of “similar” items
F Model
CommercialSale
Recondition CH-47D
Our Army at War - Relevant and Ready
CHAPS Approval Process
G-4 (Supply Policy) 27 Apr 04
Approval
CONCEPT CONCEPTEXPLORATION
PROJECT APPROVAL
APPROVAL(PM/PEO)
PROJECTEXECUTION
DETAILED COORD
OGC Mr. Hancq, Apr 04
Dep Sys Mgt BG Sorenson, 26 Apr 04
DASA (DEC) Mr. Hunter, 26 Apr 04
MILDEP LTG Yakovac, 7 Jun 04
PM Cargo Helicopter(“Project Inspiration”)
ASA(ALT) / AAE Mr. Bolton
G--3 G-4 G-8
-
ASA-FMDSCA Congressional LNO
FMS Sales and
New Production
IPT Established
Exploration TDY (DC)
Research, Legal, Intl
Request for Authority to Proceed COL CrosbyMG Bergantz
Senior StaffCoordination
Exchange / Salesand FMSSupportActions
Dep PP&R Mr. Damstetter, 7 Jul 04
AAE Review
Our Army at War - Relevant and ReadyUNCLASSIFIED
UNCLASSIFIED
NEW F MODEL BUILD/DELIVERY
D –COMMERCIAL SALE
F –LONG LEAD
ARMY EXCHANGE/SALE $$$
COMMERCIAL MARKETING EFFORT
CONTRACT DEV/MOD
EXCHANGE/SALE WAIVER
HQDA/GSA
AAE (MR. BOLTON)
PROCESS DEVELOPMENT
FY08FY07FY06FY05FY04ACTION
8 Jul 04
2 Aug – 30 Nov 04
1 Oct 04 – 3 Jan 05
1 Nov – 15 Jun 05
Jun 05
Jul 05
Feb 07 – Feb 08
DELIVERY
Mar 05 – Feb 07
Proposed CHAPS Schedule
Our Army at War - Relevant and Ready
Cargo Helicopter Airframe Procurement Support
• US Army gets a percentage of new-build CH-47F’s with same $$$ ( revenue neutral…no additional cost! )
• Reduced CH-47F production & O&S costs ( F-Model )
• Increased International sales/customer base ( Airframe & support )
• Increased Coalition Warfare Capability ( Rationalization, Standardization and Interoperability, Global War On Terrorism )
Features and Benefits…
Our Army at War - Relevant and Ready
Next Actions…
Complete detailed planning, develop project guide
Continue HQDA coordination (G-3, G-4, G-8, etc.)
Initiate Exchange/Sales actions
Execute the Plan…
WE WILL KEEP YOU INFORMED !!!
Cargo Helicopter Airframe Procurement Support
Our Army at War - Relevant and Ready
Future Logistics, Interoperability and Technology Exchange (FLITE)
• Achieve a multinational shared Chinook improvement program– R&D and ECPs– Engineering Services– Production and installation– Logistics support/sustainment
• FLITE Team (representatives from each nation)• Funding via FMS cases or amendments• Fair share of nonrecurring costs
– Development and engineering services– Based on proportion of aircraft in the fleets of participating
nations
• Recurring costs based on units purchased or level of effort
Our Army at War - Relevant and Ready
FLITE Purpose
• Coordinate requirements for all user nations• Achieve fleet improvements• Achieve economy of scale• Improve fleet support and readiness• Promote maximum worldwide user
participation• Share in the benefits of a common
configuration
Our Army at War - Relevant and Ready
FLITE Benefits• Accelerated application of improvements• Increased fleet performance and readiness• Reduced life cycle cost• Information and data sharing• Increased leverage and purchasing power• Full configuration support • Maximum safety of flight• Improved fleet sustainment and supportability• Reduced LOR/LOA & P&A processing time• Faster response to deficiencies• Single point of contact for assistance
Our Army at War - Relevant and Ready
Questions
C:\CHAPSDA(Mar04)Info.ppt