Jun. 13, 2013 by Dave Majumdar – FG

Washington DC - EADS North America pulled out of the US Army's Joint Multi-Role technology demonstrator (JMR-TD) programme because the cost of developing a high-speed rotorcraft compared to the funding the service is willing to provide is enormous, says the company's top official.

"The number was set so low and the estimate we came back with to develop was so high; this was an invitation to shovel cash into an inferno," says Sean O'Keefe, chief executive of EADS North America.

The army wants the companies participating to develop complex technologies given very limited government funding over a set period of time, O'Keefe says. The maximum service commitment was $75 million over several years, which also covered flyable test articles. "We estimated the cost to be far in excess of that number by multiples," he says. "Wonderful invitation, but we passed."

EADS, O'Keefe says, will continue developing its X3 high-speed compound helicopter design for the civilian market. The offshore oil market is one example where companies would pay for speed, he says. There are also other potential markets where a high-speed civilian rotorcraft could serve, O'Keefe says.

However, O'Keefe notes that the EADS North America JMR-TD proposal was not totally based on Eurocopter's X3 prototype, but it did leverage aspects of that aircraft's technology. The X3, O'Keefe explains, was designed for a very specific purpose and could not directly be developed into an operational military aircraft.

In the future, O'Keefe says, the company could potentially return to bid on the army's follow-on Future Vertical Lift (FVL) programme, which is expected to commence after the JMR-TD prototypes have flown in 2017. "If down the road they say: 'Gee, that's really interesting, we'd like to talk to you about it,' I would say: 'Sure, let's have a discussion,'" he says. However, unless the army had firm requirements in mind, EADS would not be willing to participate in such a programme.

The FVL effort aims to replace the Sikorsky UH-60 Black Hawk series of helicopters after 2030

Jun 12, 2013 ASDNews Source : EADS

EADS North America has completed development of the SONEX-P portable explosive detection device, a new technology that determines whether suspicious objects contain chemical, radiological, nuclear or explosive threats.

The man-portable SONEX-P is able to identify in as little as 90 seconds both the presence and location of chemical, radiological, nuclear and explosive threats located in parcels, luggage, ordnance or abandoned bags.

A Cooperative Research and Development Agreement was started in 2011 with the Naval Explosive Ordnance Disposal Technology Division (NAVEODTECHDIV). The CRADA provided EADS North America access to NAVEODTECHDIV munitions for testing and refining of the systems detection algorithm to improve detection of live ordnance and inert ordnance. Testing and demonstration of performance were conducted at NAVEODTECHDIV and results were documented.

The system has a separate algorithm for law enforcement, homeland security and first responders who deal with suspicious packages, abandoned bags and non-ordnance explosive threats.

“With the push of a button, SONEX-P allows first responders including explosive ordnance disposal teams to identify and characterize material threats concealed in everyday objects,” said Sean O’Keefe, EADS North America Chairman and CEO. “We are working with the Navy to customize the product and provide the greatest possible protection for disposal teams, first responders and the general public.”

Weighing 50 pounds, SONEX-P is comprised of only two elements: a portable detection head and a companion laptop computer. The portable unit can be quickly deployed in urban environments to scan unattended bags or other similarly sized threat objects. The system projects neutron particles at an object to quickly identify the type, location and mass of suspicious material.

The SONEX-P operator receives an automatic indication of a threat or no-threat condition with supporting 3-D images to aid in the response. Detection is automatic; no operator determination is required other than initial setup and placement of the unit. The system signals either a red light (threat) or a green light (no threat) in as little as 90 seconds.

Jun. 6, 2013 by Dave Majumdar – FG

Washington DC - EADS North America is withdrawing from the US Army's Joint Multi-Role/Future Vertical Lift (JMR/FVL) programme.

"We will withdraw from further consideration for the JMR/FVL concept development effort," writes Sean O'Keefe, chief executive officer of EADS North America in a letter addressed to Heidi Shyu, assistant secretary of the army for procurement. "We deeply regret the fiscal necessity to make this decision."

O'Keefe says that EADS faces financial constraints in light of the Congressional sequestration law that automatically cuts projected US defence outlays by 10% every year for 10 years and the implementation thereof.

Sequestration forced the army to reduce funding for the EADS UH-72A Lakota. The army had planned to buy 31 UH-72As in Fiscal 2014 and 10 the following year, but instead now plans to buy only 10 during the next fiscal year that begins on 1 October.

O'Keefe says that his company will focus its efforts on the army's armed aerial scout programme, however the service has yet to decide if it will proceed with that procurement.

Analyst Dan Goure of the Lexington Institute says that it makes perfect sense for a company like EADS to withdraw from the JMR/FVL project given that budgets are declining and there is uncertainty about how much money will be available going forward. "Why would a company put scarce talent, even if it was being paid fully for the effort-but the government wants them to put in their own money and effort-why would they do that when the chances are increasingly dim for any kind of production programme," he says.

Moreover, foreign-owned entities like EADS North America and AgustaWestland have not had experienced a positive track record in prior dealings with the Pentagon, Goure says. "So why spend the time, effort and money on a long-shot?" he asks.

But it will not just be foreign companies that opt out of bidding for US defence tenders as the flow of cash starts to ebb, even big US defense prime contractors may start carefully weighing the opportunity cost submitting a proposal to the Pentagon. "This I think is the leading edge," Goure says. "You're going to see this happen more and more and more from defence companies including US primes."

The bottom line is that in many respects the US government is an extremely demanding customer and the cost of doing business with it may simply not be worth it, Goure says. There are other business areas for companies to invest in that generate far better returns on the dollar, he says.