RAF C-130J's to be retired early?
No every time an australian defence procurment comes up. Thats lifetime project costs (or as my company calls it in the civilian world "whole life cost accounting"), to covers the full project so airframes + estimated spares + new facilites / possible field upgrades + maintainence contracts.
As this is a FMS sale its costs australia the exact same price as it would cost the DOD
https://www.cipfa.org/policy-and-gui...e-life-costing
As this is a FMS sale its costs australia the exact same price as it would cost the DOD
https://www.cipfa.org/policy-and-gui...e-life-costing
No every time an australian defence procurment comes up. Thats lifetime project costs (or as my company calls it in the civilian world "whole life cost accounting"), to covers the full project so airframes + estimated spares + new facilites / possible field upgrades + maintainence contracts.
As this is a FMS sale its costs australia the exact same price as it would cost the DOD
https://www.cipfa.org/policy-and-gui...e-life-costing
As this is a FMS sale its costs australia the exact same price as it would cost the DOD
https://www.cipfa.org/policy-and-gui...e-life-costing
No every time an australian defence procurment comes up. Thats lifetime project costs (or as my company calls it in the civilian world "whole life cost accounting"), to covers the full project so airframes + estimated spares + new facilites / possible field upgrades + maintainence contracts.
Hmmm, why do you need FMS (=Foreign Military Sales) approval for revamping your airfields/hangars and for maintenance by Australian technicians?!
As I set the FMS hare running, I only think it fair to quote the details, I draw your attention to the items I have emboldened.
https://www.dsca.mil/press-media/maj...0j-30-aircraft
WASHINGTON, November 2, 2022 - The State Department has made a determination approving a possible Foreign Military Sale to the Government of Australia of C-130J-30 aircraft and related equipment for an estimated cost of $6.35 billion. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today.
The Government of Australia has requested to buy twenty-four (24) C-130J-30 aircraft with four (4) each Rolls Royce AE-2100D turboprop engines installed; twenty-four (24) Rolls Royce AE-2100D turboprop engines with Quick Engine Change Assembly (QECA) and propellers installed (spares); sixty (60) Embedded Global Positioning System/Inertial Navigation System (GPS/INS) (EGI) security devices, airborne (48 installed, 12 spares); thirty-two (32) AN/ALQ-251 Radio Frequency Countermeasure (RFCM) systems; twenty-seven (27) Guardian Laser Transmitter Assemblies (GLTA) for Large Aircraft Infrared Countermeasures (LAIRCM) systems (24 installed, 3 spares); sixteen (16) AN/AAQ 24(V)N LAIRCM System Processor Replacements (LSPR) (12 installed, 4 spares); and twenty-four (24) Multifunctional Information Distribution System Joint Tactical Radio System (MIDS JTRS) (installed). Also included are AN/AAQ 24(V)N LAIRCM Infrared Missile Warning Sensors (MWS), Control Interface Unit Replacements (CIRU), and classified memory card User Data Modules (UDM); KYV-5M communication security modules; AN/ARC-190 High Frequency (HF) radios; AN/ARC-210 radios; AN/ARN-153 tactical airborne navigation (TACAN) systems; AN/ARN-147 receivers; AN/ARN-149(V) automatic direction finders; AN/APX-119 Identification Friend or Foe (IFF) transponders; AN/AAR 47 missile warning systems; AN/APN-241 Low-Power Color Radars (LPCR); AN/ALE-47 Countermeasures Dispensing Systems (CMDS); AN/ALR-56 Radar Warning Receivers (RWR); AN/PYQ-10 Simple Key Loaders; MX-20HD electro optical/infrared targeting systems; AN/KIV-77 IFF cryptographic appliques; Advanced Digital Antenna Production (ADAP) system components; integration support and test equipment; aircraft and support equipment; secure communications equipment, precision navigation, and cryptographic devices; classified software delivery and support; spare and repair parts, consumables and accessories; maintenance and maintenance support; classified manuals, publications, and technical documentation; personnel training and training equipment, and U.S. Government and contractor engineering, technical and logistics support services, studies and surveys; and other related elements of logistical and program support. The estimated total cost is $6.35 billion.
(...)
The principal contractor will be Lockheed Martin Corporation, Marietta, GA. There are no known offset agreements proposed in connection with this potential sale.
The Government of Australia has requested to buy twenty-four (24) C-130J-30 aircraft with four (4) each Rolls Royce AE-2100D turboprop engines installed; twenty-four (24) Rolls Royce AE-2100D turboprop engines with Quick Engine Change Assembly (QECA) and propellers installed (spares); sixty (60) Embedded Global Positioning System/Inertial Navigation System (GPS/INS) (EGI) security devices, airborne (48 installed, 12 spares); thirty-two (32) AN/ALQ-251 Radio Frequency Countermeasure (RFCM) systems; twenty-seven (27) Guardian Laser Transmitter Assemblies (GLTA) for Large Aircraft Infrared Countermeasures (LAIRCM) systems (24 installed, 3 spares); sixteen (16) AN/AAQ 24(V)N LAIRCM System Processor Replacements (LSPR) (12 installed, 4 spares); and twenty-four (24) Multifunctional Information Distribution System Joint Tactical Radio System (MIDS JTRS) (installed). Also included are AN/AAQ 24(V)N LAIRCM Infrared Missile Warning Sensors (MWS), Control Interface Unit Replacements (CIRU), and classified memory card User Data Modules (UDM); KYV-5M communication security modules; AN/ARC-190 High Frequency (HF) radios; AN/ARC-210 radios; AN/ARN-153 tactical airborne navigation (TACAN) systems; AN/ARN-147 receivers; AN/ARN-149(V) automatic direction finders; AN/APX-119 Identification Friend or Foe (IFF) transponders; AN/AAR 47 missile warning systems; AN/APN-241 Low-Power Color Radars (LPCR); AN/ALE-47 Countermeasures Dispensing Systems (CMDS); AN/ALR-56 Radar Warning Receivers (RWR); AN/PYQ-10 Simple Key Loaders; MX-20HD electro optical/infrared targeting systems; AN/KIV-77 IFF cryptographic appliques; Advanced Digital Antenna Production (ADAP) system components; integration support and test equipment; aircraft and support equipment; secure communications equipment, precision navigation, and cryptographic devices; classified software delivery and support; spare and repair parts, consumables and accessories; maintenance and maintenance support; classified manuals, publications, and technical documentation; personnel training and training equipment, and U.S. Government and contractor engineering, technical and logistics support services, studies and surveys; and other related elements of logistical and program support. The estimated total cost is $6.35 billion.
(...)
The principal contractor will be Lockheed Martin Corporation, Marietta, GA. There are no known offset agreements proposed in connection with this potential sale.
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I know. But why does the FMS request allegedly cover Airfield/Hangar refurb costs? Are the Airfields purchased in the US?
@SLXOwft: Thanks! That answers the question. In the 6.35bn there is no Refurbishment or construction of Facilities included. Also maintenance only covers specific OEM support.
But the list of equipment of the aircraft reads quite icomplete. Not just bare delivery vans.
@SLXOwft: Thanks! That answers the question. In the 6.35bn there is no Refurbishment or construction of Facilities included. Also maintenance only covers specific OEM support.
But the list of equipment of the aircraft reads quite icomplete. Not just bare delivery vans.
I know. But why does the FMS request allegedly cover Airfield/Hangar refurb costs? Are the Airfields purchased in the US?
@SLXOwft: Thanks! That answers the question. In the 6.35bn there is no Refurbishment or construction of Facilities included. Also maintenance only covers specific OEM support.
But the list of equipment of the aircraft reads quite icomplete. Not just bare delivery vans.
@SLXOwft: Thanks! That answers the question. In the 6.35bn there is no Refurbishment or construction of Facilities included. Also maintenance only covers specific OEM support.
But the list of equipment of the aircraft reads quite icomplete. Not just bare delivery vans.
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I'm surprised the Mail didn't just quote the speed as "Faster than the combined speed of 10 Elephants"
???
That was part of your answer to my wondering about the 6,35bn FMS request for 24 Helicopters. You may want to read again what you wrote ;-)
That was part of your answer to my wondering about the 6,35bn FMS request for 24 Helicopters. You may want to read again what you wrote ;-)
And where did I say FMS, dont cherry pick the quote. The FMS was a different sentence and had nothing to do with the previous sentence / paragraph.
fence procurment comes up. Thats lifetime project costs (or as my company calls it in the civilian world "whole life cost accounting"), to covers the full project so airframes + estimated spares + new facilites / possible field upgrades + maintainence contracts.
Didn't say if those elephants were in Wales or a Swimming pool -
A recent trading statement issued by Marshall Group states that the sale of the ex-RAF C-130Js is expected during H2, the delay is affecting its cash position, not only has it lost the maintenance contract it has done subsequent upgrade work on the airframes in of payment as a share of the sale value.
A document issued by Marshall of Cambridge Holdings a few days later states
Cash position
The year end cash position was significantly below forecast primarily due to increased working capital requirements on various projects, including the Centre Wing project in Aerospace and inventory build-up in Land Systems following a temporary line stoppage to address an engineering issue. Underperformance in the engineering businesses also contributed to the reduction in cash.
The continued delay in resale of the UK RAF C130 Hercules aircraft contributed further to the reduction in the cash position. However, there has been serious interest from several overseas governments over the year, with a sale of the majority of the aircraft anticipated in the second half of 2024. The additional value created in these aircraft through MRO4 work, undertaken in collaboration with the UK MOD, will be released by the sale and should result in material value to the Group.
Outlook
This has been a transitional year for Marshall, and it was always anticipated that progress against the five-year strategic plan would not be linear. The Group is proactively addressing these challenges through prudent cost control, accelerated operational efficiencies and a renewed focus on leveraging the profit opportunities in our order pipeline, particularly internationally.
In the short term, it is expected that the cash and working capital trends will continue in the first half of the 2024 financial year before easing in the second half of the year, pending the anticipated sale UK RAF C130 Hercules aircraft. The order book and order pipeline remain robust, and international expansion remains on track with construction of facilities in the US and Canada to service the US and Canadian Militaries.
The year end cash position was significantly below forecast primarily due to increased working capital requirements on various projects, including the Centre Wing project in Aerospace and inventory build-up in Land Systems following a temporary line stoppage to address an engineering issue. Underperformance in the engineering businesses also contributed to the reduction in cash.
The continued delay in resale of the UK RAF C130 Hercules aircraft contributed further to the reduction in the cash position. However, there has been serious interest from several overseas governments over the year, with a sale of the majority of the aircraft anticipated in the second half of 2024. The additional value created in these aircraft through MRO4 work, undertaken in collaboration with the UK MOD, will be released by the sale and should result in material value to the Group.
Outlook
This has been a transitional year for Marshall, and it was always anticipated that progress against the five-year strategic plan would not be linear. The Group is proactively addressing these challenges through prudent cost control, accelerated operational efficiencies and a renewed focus on leveraging the profit opportunities in our order pipeline, particularly internationally.
In the short term, it is expected that the cash and working capital trends will continue in the first half of the 2024 financial year before easing in the second half of the year, pending the anticipated sale UK RAF C130 Hercules aircraft. The order book and order pipeline remain robust, and international expansion remains on track with construction of facilities in the US and Canada to service the US and Canadian Militaries.
Shaping the group for the future
Management has taken action to offset the end of the RAF C-130J support programme (Hercules Integrated Operational Support – ‘HIOS’) by implementing cost efficiencies, strengthening the senior leadership team, and focusing on converting the £4bn pipeline of opportunities into future revenues.
(And)
Although the last service of an RAF C-130J was completed in February, Marshall has continued to modernise aircraft within the fleet (as part of the gain share agreement with the UK MoD.)
(And)
Marshall Aerospace, the UK MoDs resale partner, is under a gain share contract and is storing the C-130J aircraft ahead of their sale. However, the timing of revenues associated with the disposal of the RAFs fleet have been pushed back, with negotiations at the ministerial level between the UK and the governments of interested parties. Any further modification work will be undertaken and paid for on completion of any deal. We understand that expressions of interest from other countries have been submitted, but timing is subject to MoD approval.
Management has taken action to offset the end of the RAF C-130J support programme (Hercules Integrated Operational Support – ‘HIOS’) by implementing cost efficiencies, strengthening the senior leadership team, and focusing on converting the £4bn pipeline of opportunities into future revenues.
(And)
Although the last service of an RAF C-130J was completed in February, Marshall has continued to modernise aircraft within the fleet (as part of the gain share agreement with the UK MoD.)
(And)
Marshall Aerospace, the UK MoDs resale partner, is under a gain share contract and is storing the C-130J aircraft ahead of their sale. However, the timing of revenues associated with the disposal of the RAFs fleet have been pushed back, with negotiations at the ministerial level between the UK and the governments of interested parties. Any further modification work will be undertaken and paid for on completion of any deal. We understand that expressions of interest from other countries have been submitted, but timing is subject to MoD approval.
