2014-04-29



AH-64 in Afghanistan
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The AH-64 Apache will remain the US Army’s primary armed helicopter for several more decades, thanks to the collapse of the RAH-66 Comanche program, and the retirement sans replacement of the US Army’s Armed Reconnaissance Helicopter (ARH). Apaches also serve with a number of American allies, some of whom have already expressed interest in upgrading or expanding their fleets.

The AH-64E Guardian Block III (AB3) is the helicopter’s next big step forward. It incorporates 26 key new-technology insertions that cover flight performance, maintenance costs, sensors & electronics, and even the ability to control UAVs as part of manned-unmanned teaming (MUT). In July 2006, Boeing and U.S. Army officials signed the initial development contract for Block III upgrades to the current and future Apache fleet, via a virtual signing ceremony. By November 2011, the 1st production helicopter had been delivered. So… how many helicopters will be modified under the AH-64 Block III program, what do these modifications include, how is the program structured, and what has been happening since that 2006 award? The short answer is: a lot, including export interest and sales.

The AH-64 Apache Program: Sunset, Sunrise

Executive Summary

The AH-64E/ Block III has gone from its 2006 development contract to full production, with no major deficiencies noted in testing. By the end of 2014, all Apache helicopters rolling out of Mesa will be AH-64Es. Features like full UAV control are keeping this 1980s airframe at the leading edge of technology, and interest has been brisk.



The AH-64A/D Apache has become a dominant attack helicopter around the globe, in service abroad with Britain, Egypt, Greece, Israel, Japan, Kuwait, the Netherlands, Saudi Arabia, Singapore, and the UAE. All are strong candidates for AH-64E upgrades at some point, and some have already placed formal export requests.

Work at the Mesa, AZ manufacturing facility has been running steadily since the AH-64 program’s inception in the early 1980s, but a large share has involved less expensive refurbishment and upgrades. The Block III program continues that tradition, and most AH-64Es will be remanufactured. Countries who buy the AH-64 for the first time, or expand their fleets, will receive new-build helicopters.

There is a market for that. In recent decades, Boeing’s AH-64 Apache has eclipsed Bell Helicopters’ AH-1 in the market Bell founded, and has dealt likewise with new competitors like Eurocopter’s Tiger, AgustaWestland’s A/T129, and Russia’s Mi-28/ Ka-52. Russia’s Mi-24/25 family, which also dates back to the 1980s, is the only platform with similar customer reach, but their customer pools don’t overlap much.

The AH-64E/ Block III has been ordered by the USA (701 planned), Indonesia (8) South Korea (36), Saudi Arabia (up to 70), and Taiwan (30).

Formal DSCA export requests without any confirmed orders yet include India (22 new), Qatar (24), and the UAE (60), with more expected to follow.

AB3 Program



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The US Army aims to perform Block III/ AH-64E upgrades to all of the current Block I and II Apaches, their 68 wartime loss replacements, and recently-built AH-64 Extended Block II/+ helicopters. War replacement helicopters bought after FY 2012 will be new-build AH-64Es.

According to Boeing, Low-Rate Initial production involved 2 lots, and totaled 51 helicopters. LRIP Lot 1 was for 8 helicopters. LRIP Lot 2 was divided up into 3 tranches of 16, 19, and 8 helicopters. The Lot 3 contract was delayed so long that Lots 3-4 began Full Rate Production in 2014.

The original plan involved the AH-64′s 2nd re-manufacture program at around $16 million per helicopter. That isn’t cheap, but it’s much cheaper than a new-build AH-64E’s price tag of $40 million or so. The Army still needed new-build production of 56 helicopters, however, in order to reach the program goal of 690.

International AH-64E sales are expected to be a combination of re-manufacture and new-build orders, depending on whether the countries in question already field AH-64s, and how large they want their fleet to be. To date export customers include Taiwan (30 new-build) and South Korea (36 new-build), and Saudi Arabia has begin placing orders. Formal DSCA requests have been made for up to 183 more by India (22 new), Indonesia (8 new), Qatar (24 new), Saudi Arabia (70, most new) and the UAE (60, incl. 30 new).

The AH-64E Apache Guardian

(click for video)

The AH-64E Apache Guardian incorporates 26 new technologies designed to enhance the aircraft’s capabilities.

Flight performance: One set of advances are tied to helicopter’s flight performance. They include enhanced -701D engines with improved digital electronic control (DEC); upgraded drive systems including a split-torque face gear transmission, which increases power throughput by more than 20% (to 3,400 shp) without taking up more room; and a new composite rotor blade. The new composite rotor blades, which successfully completed flight testing in May 2004, work with the improved engines to increase the Apache’s cruise speed, climb rate and payload. Pilots in pre-training have noticed the additional power very quickly.

Overall, the front-line payoff is a higher hover ceiling altitude, at greater gross weight, on a 95F-degree day. That’s very useful in places like Afghanistan, Iraq, etc. The new avionics will also help, by allowing the new Block III helicopters to fly in clouds and inclement weather that would have grounded earlier models.

Sensor performance: Block III upgrades are designed to extend the Apache’s sensor range in all domains, and may eventually be paired with new extended range weapons like the planned JAGM Block 1.

The mast-mounted radome that defines the current Apache AH-64D Longbow houses the AN/APG-78 Longbow fire control radar. Its millimeter-wave sensing improves performance under poor visibility conditions, and is less sensitive to ground clutter. The short wavelength also allows a very narrow beam-width, which is more resistant to countermeasures as it’s trying to guide the helicopter’s missiles to their targets. Block III will extend that radar’s range, or give commanders the option of trading it for an Unmanned Aerial Systems Tactical Common Data Link Assembly (UTA) that’s mounted in the same place on the mast.

UAV Synergy: The UTA will provide advanced “Level IV MUM” control of UAVs’ flight, payloads, and even laser designators from inside the helicopter, while streaming their sensor feeds back to the Apache’s displays. That level of control is causing a rewrite of existing tactics, techniques and procedures. U.S. Army Training and Doctrine Command capability manager Col. John Lynch offers one example of what can be done when UAV sensor and flight control is added:

“For example, with the Block III Apache you might have a UAS that’s overhead looking down into urban canyons; with Manned-Unmanned Teaming you have the ability to designate targets and you can see what is in the area where you are going to operate.”

That would have been very relevant to operations in Iraq, before the USA’s destruction of Iranian intelligence networks in that country neutralized the shoulder-fired missile threat.

Electronics & displays: Behind those sensors, AH-64D Block IIIs will add open systems architecture electronics to create more standardization and “switchability,” embedded diagnostic sensors to improve maintenance, extended range sensing, wideband network communications for high-bandwidth networking, Link 16 for shared awareness, and high capacity data fusion computers to merge off- and on-board sensor imagery into a single shared picture of the battlefield.

Other electronic systems will be added over time, and will take advantage of the new electronics architecture. A new and improved IHADSS helmet display is one example. The prototype Ground Fire Acquisition System, (GFAS) is another, and will soon undergo a “user evaluation” in theater. GFAS cameras and infrared sensors detect the muzzle flash from ground fire, classify the firing weapon, and move the information through an Aircraft Gateway Processor into the cockpit. Pilots immediately see the enemy icon on their display screen, integrated with Blue Force Tracking maps. GFAS is expected to find its way into the entire US Apache fleet, but the Block III’s open architecture electronics and convenient rebuild status will make it an attractive destination for early installs.

Upgraded versions of the AN/ARC-231 Skyfire system will form the core of its initial radio capability. SATCOM (Satellite Communications) and Link-16 will supplement those capabilities, improving the helicopter’s ability to receive or share data. New AMF JTRS radios will not become part of the AH-64E’s communications system until the SALT terminal is added; a full production decision is expected in 2016.

Changes in Production Lots 4-6 will include better embedded diagnostics, APG-78 Longbow radar improvements to add range and over-water capability; and STT Link-16 to share the same view of enemy and friendly units with participating fighters, ships, air defense systems, etc. A Cognitive Decision Aiding System (CDAS), is a cumbersome name, for a system designed “to help the pilot and the crew with some of those tasks that tend to get a little cumbersome at times.”

Contracts and Key Events

Unless otherwise noted, the Army Aviation and Missile Command at Redstone Arsenal, AL manages these contracts. Note that Longbow LLC is a joint venture between Lockheed Martin and Northrop Grumman.

FY 2014

HPW3000 promo
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April 27/14: Iraq. It would appear that Iraq has begun to use its AH-64Ds (q.v. Jan 27/14), striking 8 tanker trucks in Wadi Suwab, Syria. Iraqi Interior Ministry spokesman Brig. Gen. Saad Maan said that the strike killed at least 8 people, adding that there was no coordination with the Syrian regime.

“Maan did not identify the Iraqi helicopters, but photographs of the attacks suggested that they included the AH-64 Apache attack helicopter. In early 2014, the United States said it was sending five Apaches to Baghdad.”

Sources: World Tribune, “Iraqi helicopters strike Al Qaida ISIL convoy in Syrian territory”.

April 24/14: FY15. Boeing in Mesa, AZ receives a $103.8 million firm-fixed-price contract for AH-64E Production Lot 5 long-lead items. All funds are committed immediately, using FY 2014 budgets.

The estimated completion date is Dec 31/14. Bids were solicited via the Internet, with one received. Work will be performed in Mesa, AZ. US Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-14-C-0018).

April 17/14: SAR. The Pentagon releases its Dec 31/13 Selected Acquisitions Report. It includes:

AH-64E Apache Remanufacture – Program costs increased $1,321.2 million (+9.5%) from $13,760.2 million to $15,081.4 million, due primarily to higher labor and material costs for embedded diagnostics, Link 16, and full provisions for an external fuel system (+$1,870.0 million). These increases were partially offset by lower support costs for transportability kits, helmets, radar frequency interferometer, more efficient engine procurement, and reduced crashworthy external fuel tanks (-$865.5 million).

In then-year dollars that include inflation etc., the current SAR pegs the entire program at $17.72 billion: $15.081 billion for 639 remanufactured AH-64Es, and $2.639 billion for 63 new-build AH-64Es – up from the previous 55. Note that in the past 3 years since the program split in two, then-year cost for the remanufacture program has increased 26.8%. The retirement of the entire OH-58D Kiowa Warrior armed scout fleet without replacement (q.v. Jan 14/14) makes it more plausible that the AH-64E program will actually achieve its production goals, but the US government’s deeply shaky fiscal situation makes nothing certain.

AB3A costs rise

March 31/14: GAO Report. The US GAO tables its “Assessments of Selected Weapon Programs“. Which is actually a review for 2013, plus time to compile and publish. The AH-64E isn’t mentioned directly, but its communications will eventually receive an upgrade under the AMF JTRS program. That was actually supposed to happen years ago, but the equipment just wasn’t ready.

As an interim solution, AH-64Es will fly with a Small Tactical Terminal (STT) that runs Link 16, for shared awareness with allied planes and defensive systems (q.v. Aug 28/13). The next step will be the Small Airborne Link 16 Terminal (SALT):

“…SALT is designed to be a 2-channel radio capable of running the Link 16 waveform and the Soldier Radio Waveform (SRW). The program plans to introduce production hardware into the Apache AH-64E assembly line in fiscal year 2016…. The Army plans to release the SALT request for proposals in the second quarter of fiscal year 2014 and a full rate production decision is scheduled for fiscal year 2016.”

March 4-11/14: FY15 Budget. The US military slowly files its budget documents, detailing planned spending from FY 2014 – 2019. The planned removal of the OH-58D Kiowa Warriors from the Army’s fleet has resulted in a big speedup of AH-64 purchases, though the FY 2015 order looks like a cut until the wartime supplemental request is known; based on Apache PMO approval, it will be another 10 (TL 35), a drop of 13 helicopters vs. previous plans. Changes are reflected in the programs and budget graphs, above.

The Apache Remanufacturing Program is all that’s left, and most budget figures through 2019 assume savings associated with a 2017 – 2021 Multi-Year contract, with production assumed to last through FY 2025. They do add that:

“The FY16 AP does not support a Multi-Year contract; however, the Army will adjust FY16 AP [Aircraft Procured] in future budget submissions. The quantities of remanufacture aircraft the Apache PMO approves are FY13, 37; FY14, 35; (based upon 16 Feb 2014 contract negotiation); and FY17, 74. The corresponding AP for all years would need to be adjusted in future budget submissions.”

March 4/14: FY13 – FY14. Boeing in Mesa, AZ receives a $1.156 billion contract modification covering Full Rate Production of 72 remanufactured AH-64Es, 10 new AH-64Es, updates to 5 crew trainers, and full refurbishment of 1 more crew trainer; plus integrated logistics support, peculiar ground support equipment, initial spares, over and above work, and engineering studies.

There have been some advance buys (q.v. Oct 2/12, Jan 3/13, Sept 24/13), but it has taken a while to negotiate these Lot 3 and Lot 4 contracts.

$874.4 million is committed immediately, using a combination of FY 2013 ($380 million) and FY 2014 ($494.3 million) budgets. Work will be performed in Mesa, AZ, and the estimated completion date is June 30/16. US Army Contracting Command, Redstone Arsenal, AL, is the contracting activity (W58RGZ-12-C-0055, PO 0007).

82 AH-64Es

Jan 27/14: Iraq. The US DSCA announces Iraq’s formal export request to buy 24 AH-64E Apache attack helicopters and associated items, in a 3-part request with an estimated cost of up to $6.25 billion. Iraq is facing a regrown insurgency in Sunni areas, which has been strengthened by additional battlefield experience gained in Syria. Even so, this announcement immediately attracts opposition in Congress, where Iraqi Prime Minister Maliki’s divisive and Shi’ite sectarian approach has left him short of support. A number of senators, most prominently Sen. Menendez [D-NJ], are opposed to releasing the helicopters for sale, believing that they would be used against Iraqi civilian populations.

#1: AH-64E Longbow Guardian sale.

24 new AH-64E helicopters with AN/APR-48 Modernized Radar Frequency Interferometers, AN/APX-117 Identification Friend-or-Foe Transponders, Embedded Global Positioning Systems with Inertial Navigation with Multi Mode Receiver, MXF-4027 UHF/VHF Radios, and 30mm Automatic Chain Guns.

56 T700-GE-701D Engines.

27 AN/ASQ-170 Modernized Target Acquisition and Designation Sights and 27 AN/AAR-11 Modernized Pilot Night Vision Sensors; together, they make up the “Arrowhead” system.

12 AN/APG-78 Fire Control Radars with Radar Electronics Unit (LONGBOW component), which mount on top of the helicopter rotor.

28 AN/AAR-57(V)7 Common Missile Warning Systems.

28 AN/AVR-2B Laser Detecting Sets.

28 AN/APR-39A(V)4 or APR-39C(V)2 Radar Signal Detecting Sets.

28 AN/ALQ-136A(V)5 Radar Jammers.

52 AN/AVS-6 Night vision goggles.

90 Apache Aviator Integrated Helmets.

60 M299 HELLFIRE Missile Launchers.

480 AGM-114R HELLFIRE Missiles.

An unnamed number of 2.75 in Hydra Rockets and 30mm rounds.

Site surveys, design and construction.

Aircraft Ground Power Units, spare and repair parts, support equipment, publications and technical data, personnel training and training equipment, and US government and contractor engineering, technical, and support services.

If a contract is approved and negotiated, Iraq will need 3 US government and 2 contractor representatives in Iraq to support delivery and initial familiarization. That would be followed by a 12-person Technical Assistance Team (1 military, 11 contractors) for about 3 years. Prime contractors will be:

Boeing Company in Mesa, AZ (AH-64)

Lockheed Martin Corporation in Orlando, FL and MS2 in Owego, NY (Hellfires, Arrowhead)

General Electric Company in Cincinnati, OH (Engines)

Longbow Limited Liability Corporation in Orlando, FL (Joint venture, Longbow radar)

Raytheon Corporation in Tucson, AZ

The estimated cost is up to $4.8 billion. That’s very expensive, but note the implicit inclusion of base construction in the request, and the long-term Technical Assistance team whose ongoing security and provisioning also has to be paid for by the Iraqi government these days.

#2: AH-64D Rental. The 2nd component involves support for a more temporary lease of 6 American AH-64Ds as an interim measure, plus associated items and extensive support. That effort could cost up to $1.37 billion, and includes:

3 spare T-700-GE-701D engines

2 spare Embedded Global Positioning System Inertial Navigation System (EGI)

3 Arrowhead AN/ASQ-170 Modernized Target Acquisition and Designation Sight (MTADS)/ AN/AAQ-11 Modernized Pilot Night Vision Sensors (PNVS)

8 AN/AAR-57 Common Missile Warning Systems

6 AN/AVR-2A/B Laser Warning Detectors

6 AN/APR-39A(V)4 Radar Warning Systems with training Universal Data Modems (UDM)

M206 Infrared Countermeasure flares, and M211/ M212 Advanced Infrared Countermeasure Munitions (AIRCM) flares

12 M261 2.75 inch Rocket Launchers

14 HELLFIRE M299 Launchers

152 AGM-114 K-A HELLFIRE Missiles

Plus Internal Auxiliary Fuel Systems (IAFS), Aviator’s Night Vision Goggles, Aviation MSion Planning System, training ammunition, helmets, transportation, spare and repair parts, support equipment, publications and technical data, personnel training and training equipment, and site surveys.

1 US Government and 67 contractor representatives to provide support.

Key contractors for this effort include Boeing Company in Mesa, AZ; Lockheed Martin Corporation in Orlando, FL; GE in Cincinnati, OH; and Robertson Fuel Systems, LLC in Tempe, AZ.

More Hellfire Missiles. The 3rd component involves up to $82 million for 500 of Lockheed Martin’s AGM-114K/R Hellfire Missiles, Hellfire Missile conversion, blast fragmentation sleeves and installation kits, containers, transportation, spare and repair parts, support equipment, personnel training and training equipment, publications and technical documentation, and additional US government and contractor support. Iraq already operates Hellfire missiles on its fixed-wing AC-208B Combat Caravans, but it will need more to equip an attack helicopter fleet.

When all Hellfire requests made this day are put together, they total 152 AGM-114 K-As, and up to 980 of the newest AGM-114Rs. Sources: DSCA #13-18, “Iraq – AH-64E APACHE LONGBOW Attack Helicopters” | DSCA #13-29, “Iraq – Support for APACHE Lease” | DSCA #13-78, “Iraq – AGM -114K/R Hellfire Missiles”.

DSCA: Iraq (24 AH-64Es + 6 rental AH-64Ds + Hellfires)

Jan 24/14: Indonesia. Army Chief of Staff General Budiman says that AH-64Es will arrive in Indonesia between 2015 – 2017, and they will be piloted by the Army. While the Aug 26/13 reports focused on $500 million for the deal, Budiman places it at $600 million when pilot and maintenance training is included. Bases are being prepared, but the main base will be in Berau, the northernmost district of East Kalimantan.

Sadly, the article is provably wrong about other things. The AH-64 can’t carry any anti-radar missiles, for instance, or AIM-9 Sidewinder air-to-air missiles either. Sources: Antara News, “Indonesian military to have Apache combat helicopters”.

OH-58D over Tal Afar
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Jan 14/14: No ARH. The OH-58 fleet will be retired, without a successor. Instead of 15 Combat Aviation Brigades, the Army is likely to drop to 10-13. On the other hand, the odds of actually fielding the full AH-64E program just rose sharply.

US Army Aviation Center of Excellence commander Maj. Gen. Kevin W. Mangum finally discusses the Army’s 2010 ARH Analysis of Alternatives, which recommended a mix of AH-64Es and UAVs to take on the Army’s scout helicopter role. So, why did the Army keep pushing for a new Armed Aerial Scout? Magnum says they didn’t have enough money to buy enough AH-64s. What changed? A smaller Army doesn’t need as many. The current leadership has decided that 698 AH-64Es, who will be able to control the planned fleets of unarmed RQ-7B Shadow and armed MQ-1C Gray Eagle UAVs from the air, will provide an “80% solution.”

The AH-64D to AH-64E upgrades will be funded by avoiding Kiowa modernization or replacement, and the Army also axed 15 military specialties that were unique to the OH-58D. Some rebalancing will need to move more UH-60s to the National Guard, where they can offer useful capabilities during natural disasters etc., while shifting AH-64s to the active-duty force. Gen. Magnum adds that investment of all kinds is going to be slim:

“I tell youngsters who are in the Basic Officer Leader Course that when some of you retire from the Army in 20, we still will not have finished fielding the UH-60M and AH-64E. That’s how far we’ve pushed these programs.”

Especially with AH-64s and UH-60s costing a good deal more to fuel and maintain than Kiowas. The question is whether the sequester’s recent rollback will create pushback on Capitol Hill, if National Guard drawdowns affect local bases. If so, will that pushback be enough? The Army does seem determined to do this. Sources: US Army, “Army aviation flying smarter into fiscal squeeze” | Alabama.com, “Army planning to scrap OH-58 Kiowa Warriors helicopter fleet: Reports” | Jackson Sun, “National Guard: Tennessee could lose 30 OH-58D helicopters, including at Jackson flight facility, under proposed Army plan” | The Motley Fool, “The U.S. Army Is About to Make a Huge Mistake”.

Apaches only: End of the OH-58D scout helicopters

Nov 21/13: IOC. The AH-64E reaches Initial Operational Capability on schedule, spearheaded by the 1-229th Attack Reconnaissance Battalion at Joint Base Lewis-McChord, WA. The 1-229th flew more than 670 hours over the last month, with an average operational tempo of 27 hours per airframe per month. Sources: US Army, “Army Achieves Initial Operating Capability with the AH-64E Apache”.

AH-64E IOC

Nov 4/13: Taiwan. Taiwan’s first 6 AH-64E attack helicopters have been re-assembled in Taiwan’s Kaohsiung Harbor, after arriving by ship. The US reportedly asked Taiwan’s military authorities not to reveal the AH-64E’s cockpit layout or configuration in its Nov 7/13 public display. Unfortunately, that request comes about a week after revelations that Taiwanese officers sold key information about Taiwan’s brand-new E-2 Hawkeye 2000 AEW&C planes to the Chinese.

The AH-64Es will become operational in April 2014, with Guiren Air Force Base in Tainan serving as a training and basing focal point. More than 60 Taiwanese pilots and maintenance personnel returned to Taiwan in August 2013, after completed 20 months of training in the USA that will let them act as instructors. Still, there were limits, which echoed circumstances surrounding the delivery of Taiwan’s AH-1W Cobras over a decade ago:

“While Taiwanese pilots and maintenance personnel managed to get a full understanding of the aircraft software and hardware, the pilots were unable to obtain training in certain special flight skills. The Taiwanese trainees were asked to leave the classroom or training site whenever the American instructors were giving lectures on certain critical courses or special flight maneuvers, the officials said.”

They’ll have to figure those out on their own. A 2nd batch of Apache helicopters is scheduled for delivery to Taiwan in late December 2013, and 3 more batches of 6 will complete deliveries by the end of 2014. Sources: Focus Taiwan, “Taiwan takes delivery of first Apache choppers” | Focus Taiwan, “Talk of the Day — AH-64E Apache choppers debut in Taiwan” | Flight International, “Taiwan receives first batch of AH-64E Apaches” | Focus Taiwan, “Apache choppers to bolster Taiwan’s combat capability: expert”.

Taiwan: AH-64Es arrive

Oct 21/13: AH-64 Next? The US government’s Advanced Affordable Turbine Engine program (AATE) program begins to show public results, with PW/Honeywell’s ATEC joint venture touting its HPW3000′s performance in early tests. Their competitor is GE’s GE3000.

Within the Army, the application of these technologies will fall under AATE’s follow-on Improved Turbine Engine Program (ITEP). Its goal is a 3,000 shp turboshaft that also delivers AATE’s desired 25% better fuel efficiency, 20% longer engine life, and 35% maintenance cost improvements. All in a package that could act as a drop-in replacement for the AH-64E’s current T700-GE-701D, which delivers 2,000 shp. Assuming they can deliver, AH-64 on-station time could rise by an hour or so, or see range extensions and better altitude limits. As an alternative, the helicopter could carry about 3,300 more pounds of payload under better conditions. If the companies could deliver on the reliability goals as well, the combined value of those maintenance and longevity improvements for the UH-60 and AH-64 fleets could add up to $1 billion over the engines’ life cycle. Pratt & Whitney release, Oct 21/13 | Aviation Week, “Teams Test More Powerful Engines For U.S. Army Helicopters” | ATEC JV site | ATEC HPW3000 infographic [PDF] | GE3000 page.

FY 2013

AH-64E “Guardian”; US new-build program effectively terminated; Link 16 purchases begin; Korea picks AH-64E, begins orders; US approves Indonesia deal.

Refurb, Step 1
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Sept 24/13: Boeing in Mesa, AZ receives a $52.4 million firm-fixed-price contract to procure an estimated 48 AH-64Es under Lot 3 remanufacture, Lot 3 new build, and Lot 4 remanufacture.

Work will be performed in Mesa, AZ, with funding from FY 2013 “other authority” funds. This contract was a competitive acquisition via the web, but with 1 bid received (W58RGZ-12-C-0055).

Sept 9/13: South Korea. The Longbow LLC joint venture in Orlando, FL receives a $51.1 million firm-fixed-price contract for 6 Longbow fire control radars, plus associated parts, spares and support. It’s part of Korea’s 36-helicopter buy, which has already seen orders for 36 helicopters, their engines, MTADS-PNVS surveillance and targeting turrets, and now a limited number of Longbow radars. Total announced so far: $1.236 billion, out of a $1.6 billion budget.

The Republic of Korea is the Longbow radar’s 10th international customer, and production under their order is scheduled through 2016. Work will be performed in Orlando, FL; Ocala, FL; and Baltimore, MD. US Army Contracting Command, Aviation at Redstone Arsenal, AL acts as South Korea’s agent (W58RGZ-13-C-0105). Sources: Pentagon | NGC & Lockheed releases, Sept 12/13.

Sept 9/13: Training. Boeing in St. Louis, MO receives a $14.4 million firm-fixed-price, contract for 4 Longbow crew trainers.

Work will be performed in St. Louis, MO, using FY 2011 “other authorization” funds. This contract was done as a competitive acquisition via the web, but just 1 bid was received (W58RGZ-13-C-0086).

Aug 30/13: RDT&E. Boeing receives a $22.7 million cost-plus-incentive-fee contract modification for continued AH-64E development and demonstration. Work will be performed in Mesa, AZ (W58RGZ-05-C-0001, PO 0059).

Aug 28/13: Link 16/STT. Following successful AH-64E flight tests, the Army has decided to pursue a sole source contract with ViaSat for their Small Tactical Terminal (STT). The 16-pound KOR-24A STT provides simultaneous communication, voice or data, using Link 16 and the Soldier Radio Waveform (SRW).

Link 16 securely shares locations of identified friendly and enemy forces, so that all equipped units see what any one unit can see, and vice-versa. Knowing that there’s an enemy anti-aircraft unit in place before you fly over the next hill is a big plus. Sources: ViaSat, Aug 28/13 release | ViaSat STT.

Aug 26/13: Indonesia. US Secretary of Defense Chuck Hagel, in a meeting with his Indonesian counterpart Purnomo Yusgiantoro, confirms that the US agrees to Indonesia’s request for 8 Apache helos (q.v. Sep 21/12 entry). The deal is valued at about $500 million, far lower than the $1.4 billion cost in last year’s DSCA request, suggesting it does not cover armament. Different contracts are subsequently announced to provide AGM-114 Hellfire missiles to customers that include Indonesia.

Some human rights groups fear the helicopters will be used to crack down on separatists, and are concerned by the sale of such machines to a military with a recent past of human rights abuses. US DoD | Jakarta Globe, “US to Sell Indonesia 8 Apache Helicopters” | Asia Times, “US sparks Indonesia arms sales concern” | Australia’s ASPI, “Why does Indonesia need Apache gunships?”

Indonesia: 8

Aug 23/13: South Korea. Boeing in Mesa, AZ receives a firm-fixed price, option eligible, multi-year contract from South Korea, with a cumulative maximum value of $904.4 million for 36 new AH-64E Apache Helicopters. This contract includes initial support, spares and 1 Longbow crew trainer.

Work will be performed in Mesa, AZ, with the US Army Contracting Command, Aviation in Redstone Arsenal, AL managing the contract as South Korea’s FMS agent (W58RGZ-13-C-0106). Total so far: $1.185 billion, out of a $1.6 billion budget.

South Korea: 36

Aug 21/13: South Korea. General Electric Aviation in Lynn, MA receives a firm-fixed price, no option contract with a cumulative maximum value of $57.5 million for 72 production T700-GE-701D engines, extended warranties, and four spares and support packages. They’ll be used on South Korea’s 36 new AH-64Es, and represent the 2nd purchase of long-lead items by that country.

Work will be performed in Lynn, MA, and will be managed by the US Army Contracting Command – Aviation in Redstone Arsenal, AL manages the contract on behalf of their ROK client (SPRTA1-12-G-0006). This is the 2nd Pentagon release that refers to a sole-source item as a “competitive acquisition with 3 bids solicited and 3 received”. We can only conclude that they mean the South Korea’s attack helicopter competition generally.

Aug 8/13: Taiwan. Boeing in Mesa, AZ receives a $92.3 million firm-fixed-price contract modification, as part of Taiwan’s AH-64E buy and associated support. The Pentagon says that this brings the cumulative total face value of this contract to $716.7 million. The original DSCA request, including 30 helicopters, weapons and 6 years of support, had a maximum of $2.532 billion (q.v. Oct 3/08)

FY 2009 procurement funds are being used, which was the year Taiwan placed the order. US Army Contracting Command in Redstone Arsenal, AL acts as Taiwan’s agent (W58RGZ-09-C-0147, PO 0025).

Aug 1/13: Longbow LLC, Orlando, FL receives a $6.8 million firm-fixed-price contract modification for services to support Low Rate Initial Production of the Radar Electronics Unit and UAS Tactical Common Data Link Assembly, bringing the cumulative total face value of this contract to $182.3 million. FY 2012 Procurement funds were used by US Army Contracting Command at Redstone Arsenal, AL (W58RGZ-10-C-0005, PO 0035).

Aug 1/13: South Korea. Lockheed Martin Missiles and Fire Control in Orlando, FL receives a maximum $223.3 million contract to buy M-TADS/PNVS systems for South Korea (q.v. April 17/13). Lockheed Martin later confirms that this is the 1st announced contract in their 36-machine AH-64E order, covering 36 Arrowhead systems and spares, with production and delivery extending through 2018. Electronics assembly will take place at the Ocala, FL facility, with final assembly performed in Orlando, FL.

South Korea becomes the system’s 12th international customer. Oddly, the Pentagon release says that 3 bids were solicited, with 3 bids received. The system only has 1 manufacturer, and it would be very expensive to integrate a different system on the AH-64. US Army Contracting Command in Redstone Arsenal, AL acts as South Korea’s agent (W58RGZ-13-C-0104). Lockheed Martin.

June 7/13: Saudi. Longbow LLC in Orlando, FL receives a $39 million firm-fixed-price, foreign-military-sales (FMS) contract modification from Saudi Arabia, buying an undeclared number of AH-64 mast mounted assemblies; the fire control radars that go inside them; and related support equipment.

The Pentagon says that the cumulative total face value of this contract is $333.3 million, but it’s a FY 2006 contract that far predates Saudi AH-64E buys. Based on DID’s tracking of announced contracts, the Saudis have now committed $339 million to their AH-64E buy so far, using several contracts. US Army Contracting Command at Redstone Arsenal, AL acts as Saudi Arabia’s agent for this FMS sale (W58RGZ-06-C-0134, PO 0042).

May 24/12: SAR. The Pentagon finally releases its Dec 31/12 Selected Acquisitions Report [PDF]. The AH-64E programs feature prominently, with overall program costs rising by more than $2 billion, vs. the previous figures as reported by the GAO in March:

“AH-64E Apache Remanufacture – Program costs increased $1,791.9 million (+15.0%) from $11,968.3 million to $13,760.2 million, due primarily to reflect a revised Independent Cost Estimate (ICE) by CAPE [DID: Pentagon Cost Assessment and Program Evaluation team] in support of Full Rate Production (FRP) approval in September 2012 (+$1,339.5M). There were additional increases for other support (+$347.8 million) and initial spares (+$151.0 million) to reflect the approved CAPE FRP ICE.”

See April 10/13 entry to explain our lack of faith that future US Army new-build orders will ever materialize. Officially, however:

“AH-64E Apache New Build – Program costs increased $328.7 million (+15.3%) from $2,155.8 million to $2,484.5 million, due primarily to a stretch-out of the procurement buy profile (+$260.0 million). Since Milestone C in September 2010, 46 of the 56 AH-64E New Build aircraft have been shifted outside the Future Year Defense Program to higher priority programs. There were additional increases for other support (+$78.5 million) and initial spares (+$26.6 million) to reflect a revised Independent Cost Estimate by Cost Assessment and Program Evaluation (CAPE) in support of full rate production approval in March 2013. These increases were partially offset by a quantity decrease of 2 Overseas Contingency Operations-funded aircraft [DID: lost helo replacements] from 58 to 56 aircraft (- $111.2 million) and associated schedule and estimating allocations ($+46.3 million).”

SAR – program costs rise

May 22/13: Saudi. Boeing in Mesa, AZ receives a $69.2 million firm-fixed-price, foreign-military-sales contract modification for Saudi Arabia’s Apache Block III aircraft and associated parts and services. The US Army reports the total cumulative value of this contract so far as $259.4 million; when other known Saudi contracts are added, contract value to date is somewhere between $296-300 million. Given Saudi AH-64E export requests for up to 60 helicopters, and known helicopter prices, this is just a drop in the bucket.

US Army Contracting Command in Redstone Arsenal, AL manages the contract on behalf of its Saudi client (W58RGZ-12-C-0089, PO 0008).

May 22/13: Saudi. Boeing in Mesa, AZ receives a $14.3 million firm-fixed-price, foreign-military-sales contract modification for Saudi Arabia’s Apache Block III aircraft and associated parts and services. The US Army reports the total cumulative value of this contract so far as $35.2 million. US Army Contracting Command in Redstone Arsenal, AL manages the contract on behalf of its Saudi client (W58RGZ-12-C-0113, PO 0003).

April 17/13: South Korea picks AH-64E. South Korea announces that the AH-64E Guardian has beaten the AH-1Z Viper and T-129 ATAK helicopters for a 1.8 trillion won ($1.6 billion), 36-machine order to replace their existing fleet of AH-1S Cobra attack helicopters. The ROK hopes to have the helicopters between 2016 and 2018. The Apaches are useful for countering heavy armor formations, and might have an important role against artillery in Korea, but the Korea Herald offers another interesting possibility: a duel between fast moving aerial and land opponents:

“In Goampo, Hwanghae Province, the North has built a unit to house some 60 hovercrafts whose infiltrations operations could be countered by the attack helicopters. The communist state is known to have some 130 hovercrafts that can travel through mudflats into the border islands at a speed of 100 kilometers per hour.”

The attack helicopter decision had been due in October 2012, but was put on hold until after the elections. The AH-1Z would have represented continuity with the existing fleet, and was the subject of a September 2012 DSCA export request. The Italo-Turkish T-129 would have been a reciprocal deal with a major arms export customer. A DAPA official is quoted as saying that the AH-64E’s superior target acquisition capability, power, and weapons load gave it the edge, and so South Korea will begin the acquisition process. The weapons load issue is debatable, but the Apache is certainly much more heavily armored than its counterparts, and its combination of modernized optics and MMW radar or UAV control does give it an edge in target acquisition.

The ROK is a bit behind on approvals and other concrete arrangements for the AH-64E, but KAI’s existing position as a major AH-64E subcontractor will help a bit. US Army | Korea Herald | Reuters.

South Korea picks AH-64E

April 12/13: Rotors. Boeing in Mesa, AZ receives a $36.6 firm-fixed-price contract modification, buying composite main rotor blades and associated support equipment for the Block III configuration. The performance enhancing composite blades are part of the AH-64E’s efficiency changes. The award uses FY 2012 procurement contract funds (W58RGZ-10-G-0006, 0013).

April 10/13: FY 2014 Budget. The President releases a proposed budget at last, the latest in modern memory. The Senate and House were already working on budgets in his absence, but the Pentagon’s submission is actually important to proceedings going forward. See ongoing DID coverage.

The AH-64E submission marks a big shift. Previous 2014 procurement plans involved 48 machines: 10 new-build helicopters ($475.2 million) and 38 remanufactured ($618.8 million) machines, for a total of $1.094 billion. The new plan involves 42 remanufactured helicopter and no new machines, for a total of just $759.4 million and an overall drop of 30.59%. The Pentagon didn’t even deliver its war supplemental budget, so those numbers could rise. The program as a whole has dropped from the still-official 634 helicopters to 628, but there are still a limited number of airframes to work with. Adding AB3-R Apaches now means subtracting them later, which may be attractive if the Army sees even more problems in future years.

This is a long term shift, because the AB3B new-build program has essentially been terminated. Foreign buyers can still get them, and the US Army’s official fiction is that the remaining 45 new-build helicopters of their 55-helicopter goal will be bought after 2018, creating 683 AH-64Es for $15.33 billion. Anyone who believes that plan is asked to email us, in order to receive the attractive terms of our toll bridge investment opportunity near Brooklyn.

The reality? AH-64E is now a 638 helicopter program, worth $12.53 billion.

Major program shift: de facto termination for AB3 New-build

March 15/13: Support. Boeing in Mesa, AZ receives a $7.2 million firm-fixed-price contract modification, exercising an option for AH-64E contractor logistics support. Work will be performed in Mesa, AZ with an estimated completion date of Nov 30/14. One bid was solicited, with 1 bid received (W58RGZ-09-C-0161).

March 5/13: SDD. Boeing in Mesa, AZ receives a $41.1 million cost-plus-fixed-fee modification that adds to the AH-64 Apache Block III’s SDD contract.

Work will be performed in Mesa, AZ with an estimated completion date of Sept 30/14. The original bid was solicited through the Internet, with 1 bid received (W58RGZ-05-C-0001).

Jan 9/13: Guardian. The US Army shares that the designation for the AH-64E Apache is “Guardian,” written/ referenced as “AH-64E Apache Guardian.”

The AH-64D was known as the AH-64D Apache Longbow, due to its radar mast that provides fire and forget operation when using AGM-114L Hellfire Longbow missiles with millimeter-wave guidance. US Army.

“Guardian”

Jan 17/13: DOT&E testing. The Pentagon releases the FY 2012 Annual Report from its Office of the Director, Operational Test & Evaluation (DOT&E). The AH-64E is included, and the news is almost all good. It’s operationally effective, and better than its predecessors. It’s also operationally suitable, surpassing reliability thresholds with statistical confidence and meeting all current maintainability requirements. Survivability is at least as good as the AH-64D, and increased power margins also do their bit to improve flight safety.

Now, the lone piece of bad news: The AH-64E is vulnerable to computer network attack. An Army threat computer network operations team conducted limited penetration testing against the Blue Force Tracker, the Aviation Mission Planning System, and aircraft maintenance ports. Threat team activities were limited to computer network scanning (passive and active) while the AB3 aircraft were on the ground, but they were successful in gaining access to AB3 systems.

Jan 9/13: Lot 4-6 Enhancements. US Army Apache program manager Col. Jeff Hager talks to Flight International about the AH-64E.

Boeing has delivered 28 of 51 low-rate initial production AH-64Es so far, and will start full-rate production in 2013. Changes in Production Lots 4-6 will include better embedded diagnostics, APG-78 Longbow radar improvements to add range and over-water capability; and Link-16 to share the same view of enemy and friendly units with participating fighters, ships, air defense systems, etc. A Cognitive Decision Aiding System (CDAS), is a cumbersome name, for a system designed “to help the pilot and the crew with some of those tasks that tend to get a little cumbersome at times.” Flight International.

Jan 3/13: Taiwan? Boeing in Mesa, AZ receives a $71 million firm-fixed-price contract modification “to procure Apache AH-64D helicopters in support of Foreign Military Sales.” We asked for further details to clarify which customer, but neither Boeing nor the US military will provide those any longer, except through Freedom of Information Act requests. The contract number does match Taiwan’s 30-helicopter order, and the USA seems to be using a different contract number for them, but that conclusion isn’t 100% certain.

Work will be performed in Mesa, AZ with an estimated completion date of Oct 31/17. One bid was solicited, with 1 bid received (W58RGZ-09-C-0147).

Jan 3/13: Boeing in Mesa, AZ receives a $39.6 million firm-fixed-price contract modification. Boeing tells us that this is additional advance procurement funding for the US Army.

Work will be performed in Mesa, AZ with an estimated completion date of Sept 30/13. One bid was solicited, with 1 bid received (W58RGZ-12-C-0055).

Jan 3/13: FMS. Boeing in Mesa, AZ receives an $18.4 million firm-fixed-price contract modification “to procure Apache Block III Aircraft in support of Foreign Military Sales.” We asked for further details to clarify which customer, but neither Boeing nor the US military will provide those any longer, except through Freedom of Information Act requests.

Work will be performed in Mesa, AZ with an estimated completion date of April 30/13. The bid was solicited through the Internet, with 1 bid received (W58RGZ-12-C-0089).

Nov 1/12: Taiwan? Boeing receives a $66.1 million firm-fixed-price contract modification “to procure Apache Block III aircraft and related support.” We asked about this contract, which turns out to be a Foreign Military Sale order, even though it wasn’t announced as such. Neither Boeing nor the US military will provide those any longer, except through Freedom of Information Act requests. The contract number does match Taiwan’s 30-helicopter order, and the USA seems to be using a different contract number for them, but that conclusion isn’t 100% certain.

Work will be performed in Mesa, AZ with an estimated completion date of Oct 31/17. One bid was solicited, with one bid received (W58RGZ-09-C-0147).

Oct 24/12: AH-64E. The US Army formally renames the AH-64D Block III the “AH-64E,” in accordance with a USAF memo received in September. It also formally announces the program’s full-rate production decision, which the Defense Acquisition Board granted in August 2012.

As part of that decision, the AH-64E becomes an ACAT C program with oversight from the Army (Heidi Shyu), instead of an ACAT D program with oversight from the US Department of Defense.AOL Defense.

AH-64E, FRP

Oct 2/12: ? Boeing in Mesa, AZ receives a $69.7 million firm-fixed-price contract modification for “Apache Block III aircraft.” Boeing could not provide additional details by the time of publication.

Work will be performed in Mesa, AZ with an estimated completion date of Feb 28/13. The bid was solicited through the Internet, with 1 bid received (W58RGZ-12-C-0055).

FY 2012

RDT&E funding; Taiwan orders; Indonesia & Qatar requests; UTA mast controls MQ-1C UAV; Alone in India.

KAI’s new fuselage
(click to view full)

Sept 21/12: Indonesia. The US DSCA announces [PDF] Indonesia’s official request for AH-64D Block III Apache helicopters, ancillary equipment, and weapons. The DSCA says that: “Indonesia will use these APACHE helicopters to defend its borders, conduct counterterrorism and counter-piracy operations, and control the free flow of shipping through the Strait of Malacca.”

The proposed cost is very, very high – up to $1.42 billion for 8 new-build helicopters plus initial support, or about $177.5 million for each operational, fully-equipped helicopter. By comparison, India’s similar DSCA request involved up to $1.4 billion for 22 machines and equipment. The request is somewhat controversial in Indonesia, where the chairman of the House of Representatives Commission overseeing defense and foreign affairs has said that heavy-lift CH-47 Chinook helicopters would be far more helpful. He isn’t against the Apaches per se, just believes that Chinooks would make a bigger difference to one of the military’s main roles, which is distributing relief supplies after natural disasters. He’s right, but that isn’t what they asked for; instead, it’s:

8 AH-64D Apache Longbow Block III attack helicopters

19 T-700-GE-701D Engines (16 installed and 3 spares)

9 “Arrowhead” MTADS/PNVS night vision and targeting turrets

24 Integrated Helmet and Display Sight Systems (IHDSS-21), which allow pilots to target missiles by moving their gaze.

4 AN/APG-78 Longbow Fire Control Radars (FCR) with Radar Electronics Units

4 AN/APR-48A Radar Frequency Interferometers

10 AAR-57v3/5 Common Missile Warning Systems (CMWS), with a 5th Sensor and the Improved Countermeasure Dispenser

10 AN/AVR-2B Laser Detecting Sets

10 AN/APR-39Av4 Radar Signal Detecting Sets

Identification Friend or Foe transponders

32 M299A1 Hellfire Missile Launchers

140 Hellfire AGM-114R3 “universal warhead” missiles

M230 30mm guns and ammunition

Plus helicopter transportation to Indonesia, communication equipment, tools and test equipment, training devices, simulators, generators, associated wheeled vehicles, spare and repair parts, support equipment, personnel training and training equipment, and US government and contractor support services.

Many of the items above are produced by sub-contractors like ATK, BAE, Northrop Grumman, et. al., but the prime contractors will be:

Boeing in Mesa, AZ (Helicopter)

Lockheed Martin Corporation in Orlando, FL (Hellfire missiles & launchers)

General Electric Company in Cincinnati, OH (Engines)

Lockheed Martin Millimeter Technology in Owego, NY (Longbow radars)

Longbow Limited Liability Corporation in Orlando, Florida (Longbow radars)

Implementation of this proposed sale may require 5 U.S. contractor representatives and 3 U.S. Government representatives in country, full-time, for equipment checkout, fielding, and technical support.

DSCA: Indonesia request (8)

Sept 6/12: Support. Longbow LLC in Orlando, FL receives a $39 million firm-fixed-price contract to support the helicopter’s Radar Electronic Unit and Unmanned Aerial System Tactical Common Data Link Assembly.

Work will be performed in Orlando, FL until Aug 31/13. One bid was solicited, with 1 bid received by US Army Contracting Command at Redstone Arsenal, AL (W58RGZ-12-C-0049).

Aug 28/12: Support. Boeing in Mesa, AZ receives a $17.7 million firm-fixed-price contract “for the procurement of Apache Block III aircraft and related support.”

Work will be performed in Mesa, with an estimated completion date of Dec 31/15. One bid was solicited, with 1 bid received (W58RGZ-12-C-0113).

Aug 21/12: India. The Times of India quotes a Ministry of defence official, who says that:

“It’s just a matter of time before the contract is inked for the Apaches after final commercial negotiations. Most of the hurdles have been cleared.”

It’s hard to tell whether that means anything. In India, “just a matter of time” can easily be measured in years. Meanwhile, Boeing and Russia will be competing for another Indian contract, pitting Boeing’s CH-47F heavy-lift helicopter against the even larger Mi-26.

July 13/12: Support. An $84.6 million firm-fixed-price contract covers production and support services for the Apache Block III aircraft. Work will be performed in Mesa, AZ with an estimated completion date of Jan 31/13. One bid was solicited, with 1 bid received (W58RGZ-12-C-0055).

July 12/12: Sub-contractors. Boeing announces that they’ve received the first 10 new Block III fuselages from long-time supplier Korea Aerospace Industries (KAI). This milestone paves the way for delivery of the 1st new-build Apache Block III in 2013.

Boeing is a huge customer for KAI, who supplies parts for commercial jets, F-15s, A-10 wings, etc. KAI have been delivering AH-64 fuselages for over a decade from their facility in Sacheon, South Korea, and the Republic of Korea has expressed some interest in buying new AH-64D Block III helicopters of their own (vid. Sept 24/08 entry).

July 12/12: Qatar wants 24. The US DSCA announces Qatar’s official request to buy 24 AH-64D Block III helicopters, plus associated equipment, support, and weapons, including Hellfire anti-tank and Stinger air-to-air missiles. The total estimated cost, if a contract is signed, is up to $3.13 billion for all requests. The main request includes 24 Block III attack helicopters, which would more than replace its existing 14 SA342 Gazelle light armed scouts.

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