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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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Presentation on theme: "Our Army at War - Relevant and Ready US Army CH-47 Foreign Military Sales Efforts Briefing to:"— Presentation transcript:

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

2 Our Army at War - Relevant and Ready 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 Our Army at War - Relevant and Ready 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 Our Army at War - Relevant and Ready 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 Our Army at War - Relevant and Ready 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)

6 Our Army at War - Relevant and Ready 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 Our Army at War - Relevant and Ready CHAPS Explore CH-47D sales to leverage new procurement - USG CH-47D sale via FMS, and reprogram funds for new CH-47Fs Study…

8 Our Army at War - Relevant and Ready 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 Our Army at War - Relevant and Ready Potential CHAPS Market US Army - Boeing Assessment: 30+ Aircraft Africa: Morocco 9 Egypt3-5 Ghana 4 Middle East: Israel10-20 Jordan 8 UAE 4-12 Saudi Arabia 4-10 Kuwait 4 Oman 4 South America: Argentina 1-5 Brazil 4 Chile 6 AsiaPacific: India6-30 Pakistan 4- 6 Thailand 6 Malaysia 4 Taiwan NFA4- 6 Philippines 6 Europe: Turkey 4-10 Spain 1- 4 Poland 4– 6 Czech Rep. 4 Hungary 4 France 4- 6 Germany 4- 6

10 Our Army at War - Relevant and Ready 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 Cargo Helicopter Airframe Procurement Support

11 Our Army at War - Relevant and Ready 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 Waiver approved & transmittal to GSA 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

12 Our Army at War - Relevant and Ready Cargo Helicopter Airframe Procurement Support Reconditioning as required ( Commercial or FMS ) 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 F Model Delivery Integrated Exchange & Sales and FMS/Commercial Process PM US Contractor HQDA, DoD, DoS Coordination & Staffing 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 F Model Commercial Sale Recondition CH-47D

13 Our Army at War - Relevant and Ready CHAPS Approval Process G-4 (Supply Policy) 27 Apr 04 Approval CONCEPT EXPLORATION PROJECT APPROVAL (PM/PEO) PROJECT 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 Our Army at War - Relevant and Ready 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

15 Our Army at War - Relevant and Ready Cargo Helicopter Airframe Procurement Support US Army gets a percentage of new-build CH-47Fs 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…

16 Our Army at War - Relevant and Ready 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 !!! Cargo Helicopter Airframe Procurement Support

17 Our Army at War - Relevant and Ready 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 Our Army at War - Relevant and Ready 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 Our Army at War - Relevant and Ready 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 Our Army at War - Relevant and Ready Questions C:\CHAPSDA(Mar04)Info.ppt


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