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US Army CH-47 Foreign Military Sales Efforts

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Presentation on theme: "US Army CH-47 Foreign Military Sales Efforts"— Presentation transcript:

1 US Army CH-47 Foreign Military Sales Efforts
Briefing to:

2 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.

3 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

4 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

5 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) 4703 is the number designation for the United Arab Emirates

6 Situation… CHAPS Initiative… 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

7 CHAPS Study… Explore CH-47D sales to leverage new procurement
- USG CH-47D sale via FMS, and reprogram funds for new CH-47Fs

8 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)

9 Potential CHAPS Market
Europe: Turkey 4-10 Spain 1- 4 Poland 4– 6 Czech Rep. 4 Hungary 4 France 4- 6 Germany 4- 6 AsiaPacific: India 6-30 Pakistan 4- 6 Thailand 6 Malaysia 4 Taiwan NFA 4- 6 Philippines 6 Middle East: Israel 10-20 Jordan UAE Saudi Arabia Kuwait Oman Africa: Morocco 9 Egypt 3-5 Ghana South America: Argentina Brazil Chile US Army - Boeing Assessment: 30+ Aircraft

10 IMMEDIATE OPPORTUNITY
Cargo Helicopter Airframe Procurement Support IMMEDIATE OPPORTUNITY 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 )

11 Cargo Airframe Procurement Support Initiative
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) PM Cargo… Conduct Exchange/Sale w/Contractor 2. HQDA Staffing… G-4 Coordinates DA Staffing (G-3, G-8, DASA(DEC), OGC, etc.) AR Waiver approved & transmittal to GSA General Approach… Focus on Exchange/Sales 1. Memo to DA G-4… Army Requests Exchange/Sale Waiver to Exchange/Sell CH-74D List of CH-47s and recommended pricing

12 Cargo Helicopter Airframe Procurement Support
Process Overview… 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 Delivery Integrated Exchange & Sales and FMS/Commercial Process US Contractor HQDA, DoD, DoS Coordination & Staffing G3 G-4 G-8 ASA (FM) DASA(DEC) USASAC DSCA OGC OCL DOS E&S Proceeds may be used for procurement of “similar” items Commercial Sale Recondition CH-47D Reconditioning as required ( Commercial or FMS )

13 CHAPS Approval Process
G-4 (Supply Policy) 27 Apr 04 Approval CONCEPT EXPLORATION PROJECT APPROVAL (PM/PEO) EXECUTION 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-FM DSCA Congressional LNO FMS Sales and New Production IPT Established Exploration TDY (DC) Research, Legal, Intl Request for Authority to Proceed COL Crosby MG Bergantz Senior Staff Coordination Exchange / Sales and FMS Support Actions Dep PP&R Mr. Damstetter, 7 Jul 04 AAE Review

14 Proposed CHAPS Schedule
UNCLASSIFIED Proposed CHAPS Schedule 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 FY08 FY07 FY06 FY05 FY04 ACTION 8 Jul 04 2 Aug 30 Nov 04 1 Oct 04 3 Jan 05 1 Nov 15 Jun 05 Jun 05 Mar 05 Feb 07 Jul 05 DELIVERY Feb 07 Feb 08 UNCLASSIFIED

15 Features and Benefits…
Cargo Helicopter Airframe Procurement Support Features and Benefits… 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 )

16 Next Actions… WE WILL KEEP YOU INFORMED !!! Cargo Helicopter Airframe
Procurement Support 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 !!!

17 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

18 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

19 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

20 Questions C:\CHAPSDA(Mar04)Info.ppt


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