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:


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.


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


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


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)


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


CHAPS

• Explore CH-47D sales to leverage new procurement

- USG CH-47D sale via FMS, and reprogram funds for new

CH-47Fs

Study…


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)


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


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



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



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


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



• 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…


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 !!!



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


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


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


Questions

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Our Army at War - Relevant and Ready US Army CH-47 Foreign Military Sales Efforts Briefing to:

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