This weeks FVL news:
ITEP FARA delivery delayed until spring 2023 / Inside Defense
DATE: October 28, 2022
BYLINE: Evan Ochsner
Deliveries of the new engine the Army says will power its next-generation attack helicopter are delayed until the spring because of supply chain issues, the Army said Friday.
A top Army aviation official said earlier this year that he expected engines from the Improved Turbine Engine Program to be delivered for use in Future Attack Reconnaissance Aircraft helicopter prototypes in November.
On Friday, however, hopes that the Army, and General Electric, which makes the engines, would hit that target, were dashed.
“Over 95% of the FARA engine hardware is on-hand at GE and engine assembly is underway at GE’s Lynn facility,” a program executive office for aviation spokesman said in a statement. “However, due to lingering aerospace supply chain impacts and normal developmental technical challenges, the FARA engine deliveries are delayed until Spring 2023.”
The ITEP program has been beset by delays for more than a year as it has faced challenges from the coronavirus pandemic that had pushed back testing and manufacturing of the new engine, which the Army says will power FARA, as well as Black Hawk and Apache.
Those delays had already pushed back the projected timeline for FARA, a program the Army has said is its top Future Vertical Lift modernization priority and have placed the development of the engine at odds with best practices, a June Government Accountability Office report found.
That report, which said technological maturity testing had already been delayed by over a year, said ITEP already was facing the specter of a “costly, time-intensive rework of the prototype if testing reveals issues.”
Friday’s news presents yet another delay for ITEP, and potentially for FARA. Even before the latest ITEP delay, some close observers said FARA was a top candidate to be cut from the Army’s long list of modernization priorities.
Army Chief of Staff Gen. James McConville previously said that programs that are behind on cost, schedule and performance could be the first on the chopping block.
“What we’re going to take a hard look at is each program that’s under the 31-plus-four,” McConville said, referring to the Army’s list of modernization programs. “Tough decisions become a lot easier when you have a program that’s not on performance, that’s not on schedule, that’s not on cost.”
The Army selected General Electric in 2019 to develop the T901 engine for ITEP, awarding the company a $517 million contract to serve as the sole developer of the program.
GE this week declined to provide an update on the program, deferring comment to the Army.
Bell and Sikorsky, which are competing for the FARA contract, have for months said their FARA prototypes are almost entirely complete and awaiting engine delivery.
Amidst FLRAA delays, Textron CEO projects confidence / Inside Defense
DATE: October 28, 2022
BYLINE: Dan Schere
Despite what has been a months-long delay for the Army in announcing the winning bidder for its Future Long-Range Assault Aircraft, the CEO of the parent company of one of the two finalists says that company can “live within its guidance.”
The Army is choosing between a bid from Bell and a joint bid between Boeing and Sikorsky to produce the FLRAA, which will eventually replace the 40-plus-year-old Black Hawk helicopters.
Bell had anticipated a FLRAA decision this summer, but the timeline has shifted several months. During a third quarter earnings call with Bell’s parent company Textron Thursday morning, CEO Scott Donnelly said the most recent projection is that the Army will announce its decision next month.
Donnelly had said during a previous earnings call in July that the FLRAA delays would lead to a loss in profits for Bell this year, due to the need to retain the FLRAA team but not have the benefit of contract award money, Inside Defense reported.
During Thursday’s call, investment analysts asked what impact the continued FLRAA delays would have on Textron. Donnelly appeared serene, saying that Bell continues to keep the FLRAA team together as it awaits an announcement.
“While there is some uncertainty, we’re pretty comfortable that we’ve incorporated any impacts over the total year from where we were on our plan in our guidance. So, I think we’re comfortable that we’ll land inside that guidance, despite the impacts we’ve seen on the FLRAA delay,” he said.
Bell delivered 49 commercial helicopters in the third quarter of 2022, compared to 33 during the same period last year, company officials said Thursday. Bell’s revenues in the quarter were $754 million and were down only $15 million from the same period last year due to lower military revenues. The lower military revenues were partially a result of lower aircraft and spares volume in the H-1 helicopter program.
Bell’s segment profit for the third quarter was $85 million, which was down $20 million from last year’s third quarter. The company says the drop in profit was due to lower volume and mix.
Later in the call, Donnelly was asked if he could quantify the cost to Bell of the FLRAA delays, to which that he said he could not.
FLRAA "was in our original guide. That’s why we’re seeing lower absorption. We expect it to be kind of under contract at this stage of the game, but it’s something we’re managing our way through,” he said. “We can’t quantify or wouldn’t quantify exactly the number, but suffice to say we can live within our guidance based on where we are and our expectations on the FLRAA announcement toward the latter part of this year.”
When Donnelly was asked about what types of opportunities beyond FLRAA he envisioned for Bell, he said the tiltrotor technology could be of need in the other services, particularly those that operate V-22 Osprey helicopters.
“What we’re seeing with the Army, obviously that’s a huge opportunity to replace the Black Hawk class of aircraft," he said. "You will see similar programs in the Navy, in the Marine Corps and in the Air Force in one form or fashion, and our guys are highly engaged in those program opportunities.”