Gamechanger Series: Reframing The Climate Change Debate (Part One)

02/08/2010

Sldinfo is generating a series on game changers.  What key technologies, organizational changes, or geo-political approaches will reshape the decade ahead?  Associated with identification and assessment of forces for change, we will look at the world in 2020 which is only a decade away to better understand the shifting strategic and operational environment within which global military forces will operate.

D. K. Matai has written a lead essay for our game changers series, and provides a different way to look at the climate change debate.  We will post this essay in three parts, with the first part published below. By re-framing that debate, he provides a macro perspective on the broad dynamics of change that will reshape the global macro-economic and geo-political structures.

D. K. Matai, Chairman mi2g, Phlanthropia, and ATCA, is an engineer turned entrepreneur and philanthropist with a keen interest in the well being of global society. DK founded mi2g in 1995, the global risk specialists, in London, UK, while developing simulations for his PhD at Imperial College. DK helped found ATCA – The Asymmetric Threats Contingency Alliance – in 2001, a philanthropic expert initiative to address complex global challenges through Socratic dialogue and joint executive action to build a wisdom based global economy. ATCA addresses opportunities and threats arising from climate chaos, radical poverty, organised crime, extremism, informatics, nanotechnology, robotics, genetics, artificial intelligence and financial systems. ATCA has 5,000+ distinguished members from over 100 countries: including several from the House of Lords, House of Commons, EU Parliament, US Congress & Senate, G10’s Senior Government officials and over 1,500 CEOs from financial institutions, scientific corporates, NGOs and 750+ Profs from academic centres of excellence.

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Start Of The Great Freeze?

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Footsteps in the snow lead from the historic monument of Stonehenge in Wiltshire, England. The popular tourist destination has been closed because of ice and snow on the approach paths. Britain continues to be gripped by cold weather (Photo: Matt Cardy-Getty Images; www.washingtonpost.com)

As the deep freeze continues across Europe, Asia and North America, conventional wisdom insists that this is merely a ‘blip’ of no long-term significance.  More than half the surface of some of the most powerful countries in the Northern Hemisphere has been covered by snow this winter.  That hasn’t happened for several decades.

Note the extreme temperatures in January 2010:  Hamburg, Germany -22°C, coldest since 1963; Beijing, China -16°C, coldest since 1970; Nebraska, USA -15°C, coldest since 1973.  An ATCA (Asymetric Threat  Contingency Alliance) observer in Europe stated:  “I live rurally and my elderly neighbor says that, before February last year, they hadn’t seen snow in our hamlet for 30 years. We’ve already been snowed in for nearly two weeks and we still can’t get out. That tells me everything I need to know!”

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http://www.mi2g.com

Towards a Mini-Ice Age?
Over the past decade there have been many warnings about Global Warming with precise extrapolations of temperature increase and projections of sea level rise. But the reality is that these physical climate processes are non-linear systems subject to wild fluctuations, with “flips” between alternative equilibrium states.

Is the bitter winter afflicting much of the Northern Hemisphere the start of a global trend towards much cooler weather that is likely to last in the longer term?

Some of the world’s most eminent climate scientists are suggesting that this might be the case.  Their predictions are based on an analysis of natural cycles in water temperatures in the Pacific and Atlantic oceans.   This demonstrates that much of the warming we witnessed in the last few decades was caused by oceanic cycles when they were in a ‘warm mode’ as opposed to the present ‘cold mode’.

This undermines the standard climate computer models, which assert that the warming of the Earth in the 20th and 21st centuries has been driven solely by anthropogenic, i.e., man-made greenhouse gas emissions and will continue to do so as long as carbon dioxide levels continue to rise.

Asserting that Climate Chaos partially induced by Global Warming could lead to a Mini Ice Age may seem cryptic, but non-linear dynamical systems do not operate in a straightforward fashion. Changes in the current temperature equilibrium could result in a flip to a new state after chaotically plotting through a wide range of possibilities. A warmer earth produces more precipitation, and so there may be greater snow-cover in winter, which increases the reflection of solar radiation. A new cycle of cooler temperatures triggered by greater reflection might then reduce rain precipitation, but significantly increase the proportion of snowfall.  So there is the possibility of a positive feedback loop, leading to a runaway increase in snow-cover. Such a scenario is suggestive of a Mini Ice Age.

Among the most prominent of the scientists who share unorthodox views is Professor Mojib Latif, a leading member of the UN’s Intergovernmental Panel on Climate Change (IPCC).  Prof Latif, who leads a research team at the world renowned Leibniz Institute at Germany’s Kiel University, has pioneered new methods for measuring ocean temperatures 3,000ft beneath the surface, where the cooling and warming cycles start.  He and his colleagues predicted the new cooling trend in a paper published in 2008 and warned of it again at an IPCC conference in Geneva in September 2009.

Professor Mojib Latif states:

“A significant share of the warming we saw from 1980 to 2000 and at earlier periods in the 20th Century was due to these cycles – perhaps as much as 50 per cent.  They have now gone into reverse, so winters like this one will become much more likely. Summers will also probably be cooler, and all this may well last two decades or longer.  The extreme retreats that we have seen in glaciers and sea ice will come to a halt. For the time being, Global Warming has paused, and there may well be some cooling.  Man-made warming is balanced by the natural cycles, and I do not trust the computer models, which state that if CO2 reaches a particular level, then temperatures and sea levels will rise by a given amount.  These models cannot be trusted to predict the weather for a week, yet they are running them to give readings for 100 years.”


Arctic Oscillation and Multi-Decadal Oscillations (MDOs)

At one level it is true that the current freeze is the product of the ‘Arctic Oscillation’:  a weather pattern that sees the development of huge ‘blocking’ areas of high pressure in northern latitudes, driving polar winds far to the south.  Meteorologists say that this effect is at its strongest for at least 60 years.

However, according to various climate scientists, this in turn relates too much longer-term temperature shifts.  Those are known as the Pacific and Atlantic ‘Multi-Decadal Oscillations’ (MDOs).

Professor Anastasios Tsonis, chief of the University of Wisconsin Atmospheric Sciences Group, has recently shown that these MDOs move together in a synchronized way across the globe, abruptly flipping the world’s climate from a ‘warm mode’ to a ‘cold mode’ and back again in 20 to 30-year cycles.

Professor Tsonis states:

“They [the MDOs] amount to massive rearrangements in the dominant patterns of the weather and their shifts explain all the major changes in world temperatures during the 20th and 21st Centuries.  We have such a change now and can therefore expect 20 or 30 years of cooler temperatures.  Many of the consequences of the recent warm mode were also observed 90 years ago.”

If some of the late 20th Century warming was caused not by carbon dioxide but by MDOs, then by how much? Professor Latif suggested it could be anything between 10 and 50 per cent.

Other critics of the global warming orthodoxy say the role played by MDOs is even greater.  William Gray, emeritus Professor of Atmospheric Sciences at Colorado State University, said that while he believed there had been some background rise caused by greenhouse gases, the computer models used by advocates of man-made warming had hugely exaggerated their effect.

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The scientists’ predictions undermine the standard climate computer models, which assert that the warming of the Earth since 1900 has been driven solely by man-made greenhouse gas emissions and will continue as long as carbon dioxide levels rise (www.dailymail.co.uk)

The “Hidden Rules of Non-Linear Chaos”

Working assumptions of policy makers and business leaders have been that their actions over the last year have opened the way for the global economic recovery to take hold.

However, Mother Nature may yet negate all these best efforts, via a period of a prolonged cold spell — The Great Freeze — that restricts transportation and production not just this winter but in winters to come.  This could potentially derail common efforts to address The Great Unwind (2007-?) and The Great Reset (2008-?).

Some eminent climate scientists believe that in the coming few decades there may be no discernible Global Warming and what we might see is the onset of a Mini Ice Age due to Multi-Decadal Oscillations exaggerated by Global Warming.  Their argument is strengthened by lessons from 20th century history.

Unpredictable possibilities and wild scenarios are not limited to climate. Our world rests upon finely-tuned and interlocking social systems and the synergies they create. The boundary conditions imposed by Malthus et al have been banished through innovation, productivity growth, and specialization of skills.

But like a space shuttle in flight, there are many delicate moving parts, which need to operate in perfect synchronization so that the modern technological civilization can continue to cruise at high altitude. The slightest defect or anomaly may ground it or send it shattering apart.

We could very soon witness severe disruption if the social capital of trust and security, which modern humans depend upon, evaporates due to environmental instability or climate chaos. Just as climatic systems instability may be driven by feedback loops, so trust and social capital could quickly be damaged by the emergence of unforeseen feedback loops on the climate front.

Let us note that the art of extrapolation and prediction is governed by the hidden rules of non-linear chaos rather than the clear axioms of linear geometry. Some of the clean and predictable certainties of the modern world are built upon the elegant logic of Newtonian mechanics, but the dynamical chaos which looms within and without our civilization, has the capacity to ground the elegant technological flight we are embarked upon.

We may live to regret our significant ignorance of the climatic unknown unknowns and lack of willingness to turn them into known unknowns despite the knowledge available and mounting evidence and incentives to do so.

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***Posted February 8th, 2010

The V-22 Under Attack: From the Afghanistan Weather!

02/07/2010

[slidepress gallery=’v22-weather’]

This week we have a slide show underscoring the challenge of operating in the Afghan environment. Very recently, a significant hailstorm hit the operating base in Afghanistan for the V-22. As the squadron commander put it: “You can’t get more expeditionary than this!”

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***Posted February 7th, 2010

Randy Fowler on DoD’s New Logs and Sustainment Challenges

02/05/2010

RESHAPING THE GOVERNMENT-INDUSTRIAL RELATIONSHIP FOR LOGISTICS SUPPORT AND SUSTAINMENT: RANDY FOWLER ON MEETING THE CHALLENGES

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Randy Fowler

Sldinfo sat down with Randy Fowler, Deputy Assistant Secretary of Defense for Materiel Readiness, and his staff in mid December 2009 to discuss their perspectives on the way ahead in dealing with sustainment., as a well as report published last November on this very issue: the interview follows a brief presentation of the latter.


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AN OVERVIEW OF DOD’S WEAPON SYSTEMS ACQUISITION REFORM PRODUCT SUPPORT REPORT

report


Full Focus on Acquisition Reform
With the arrival of the new Administration, there has been a core emphasis on acquisition reform.  In fact, one of the earliest accomplishments in this Administration was the Weapon Systems Acquisition Reform Act, signed into law on May 22, 2009.  But it appears that in this cycle of reform the Administration will not be content with just addressing the front-end costs of buying new weapons systems.
Instead, there is a growing recognition by the current leadership of the need to simultaneously consider the cost of logistics support during design and development and to shape ways to lower total costs across the life cycle, not just acquisition costs.  A consensus view is emerging that to truly reform acquisition, you have to consider the full life cycle and optimize across the industrial base, including the spectrum of capabilities in the organic base and in the commercial sector.  It’s about balanced and considered industrial base strategies to deliver the best value, the most cost effective support, to the warfighter. A recent report from OSD addresses the future of the business model underlying sustainment and suggests ways ahead in shaping the public-private sector relationship.  The report (DOD Weapon System Acquisition Reform Product Support Assessment) was produced by a government-industry team headed by Randy Fowler, Deputy Assistant Secretary of Defense for Materiel Readiness.  A 65-member team worked for a year and has produced a final report published in November 2009, which identifies a number of product support and acquisition reforms, which would make sustainment approaches more effective.

table1The Undersecretary of Defense for Acquisition, Technology and Logistics, Ashton Carter, has underscored his support for the effort. “I appreciate the team’s work to arrive at these findings and to publish this comprehensive report. Please be assured you will have my support during implementation of the eight recommendations. I look forward to working with the DoD Components and Agencies, Congress, Industry, and the Warfighter as we implement successful change in weapon system product support and acquisition reform. Your cooperation is paramount. Let’s drive this effort home!
The goal of the effort according to the report is “to achieve aligned and synchronized operational, acquisition, and sustainment communities working together to deliver required and affordable Warfighter outcomes” (page 7).
The report identified a number of challenges to be met to improve product support.  Among the most important was underscoring support for the impact which Performance Based Logistics (PBL) has had on the working relationship between government and industry.  PBL has demonstrated widespread success as reflected by the report’s finding that “the most mature process areas (in product support) were customer-facing metrics and performance outcomes.” The report did recognize the problem of what the GAO has called the “inauditability” of PBL cost savings:  more care needs to be taken with analytic rigor, tracking, and record keeping.  “Cost benefits are more difficult to assess: as cited in several GAO reports, many outcome-based support strategies have claimed cost reductions and cost avoidance, but DOD financial systems lack the visibility and fidelity to validate these benefits consistent with audit standards.


Adopting a New Business Model


Recommendations

The report made eight principal recommendations.  The authors shaped those recommendations into a pyramid model, the top two bands reflecting strategic priority initiatives, the third band reflecting the critical governance processes necessary to provide product support accountability across the life cycle, with the base of the pyramid reflecting the aspects, which enable the recommendations necessary to implement the higher level reforms.
At the heart of the recommendations is an emphasis upon adopting a new business model.  This model would “capitalize on an integrated defense industrial base and performance outcomes to enable cost effective capability across the weapons system life cycle.”
The challenge is simple: support costs are higher than the defense budget can afford for the long-term.  Roughly 1/3 of weapons system spending is associated with development and acquisition, while the remaining 2/3 of the spending takes place in the sustainment tail. In order to achieve fundamental financial reform, acquisition reform must grow to include the life cycle.  The acquisition of new equipment must more effectively take into account anticipated support costs, and presumably tools might be developed to more effectively choose among weapon systems based on sustainability advantages.  It’s about making decisions that integrate the breadth of considerations in the industrial base, balancing the financial trade-offs between now and the future, and pushing for cost-effective performance for the life of the weapons system.

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The report also underscores that effective partnering has enabled performance to be enhanced, even if costs savings cannot always be proven.

partnerships

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THE INTERVIEW

Taking Care of the “Neglected Stepchild”
Randy Fowler first underscored that logistics support and sustainment are crucial factors affecting concepts of operations, readiness and the defense industrial base.  “Too often life cycle sustainment is the neglected  step-child.  But now with the press of deployments and a new Administration likely looking to squeeze savings out of the budget, logistics support and sustainment are becoming prime time issues.”
At the heart of logistics and sustainment are readiness issues.
If the military and its equipment are not ready to fight, its ability to influence events is significantly reduced.  And the ability to count on availability of weapons systems is a significant aspect shaping concepts of operations worldwide.”
But at the same time, too often sustainment is thought of as the last mile of acquisition efforts.  “We tend to think in linear ways about the cycle of acquisition going from R and D (research & development), to prototypes, to manufacturing, to production, to platforms readied for deployments and THEN support and logistics systems.  In reality, we need to think in continuous process terms.  Technology development, manufacturing, production and sustainment are all part of a continuous 21st century industrial base process. You are always developing a bit, , manufacturing a bit, sustaining a bit and pushing  modifications and upgrades of  a weapon system and then eventually jumping to the next leap-ahead new system capability.  This is why you need to think holistically about manufacturing and sustainment.”

Striving for S2 Transparency
In Randy Fowler’s view, the sustainment challenge is part and parcel of the industrial base issues.  “In effect, there is an S2 process.  The manufacturing supply chain (S1) and sustainment supply chain (S2) are part of the same effort.  To sustain you have to have supply chain transparency.  To manufacture you need to have transparency and control over supply chain issues.  This is why industry is such a crucial partner in the sustainment process.  Indeed, if you cut them out in sustainment, this will have significant impacts on the supply chain, manufacturing, and the ability to have an effective defense industrial base.”
Randy Fowler went on to discuss the challenges facing performance-based logistics.  “Perhaps we need another term, but the reality is that the sustainment process is about performance, and performance measured by availability of platforms and weapons.  The regular and ongoing negotiation between industry and government in shaping performance-based metrics is at the heart of what has improved sustainment through PBL.  It is not always easy to show cost savings; but it is not difficult to show readiness, reliability, and cycle time improvements.

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Towards a Balanced Partnership
In the report, the authors underscore the need to move forward in shaping the next phase of PBL.  As one of Randy Fowler’s staff members commented, “The top of the pyramid is crucial in the governance process.  The re-shaping of an ever more effective business model is salient.  We need to improve cost measures for both the government and industry.  But the attention seems to be devolving to measurements of cost rather than focus on the VALUE from improvements in readiness.
In short, the challenge is as Ash Carter underscores: “the industrial sector is not something you turn on or off.”  Randy Fowler expanded on the Carter comment: “You need to get balanced and integrated contributions out of both the public and private sectors and to get effective long-term con-ops shaping the partnership.  Both the public and private sector are integral to delivering sustainment in 100% of our weapon system platforms.  Our DoD PBL strategy has been effective at driving public-private partnerships in the past, and it was named performance -based for a reason; we think we have gotten value, but new methods and ways ahead are certainly needed to improve confidence in the cost benefits.  That is the point of the whole report.”  Randy Fowler concludes.

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***Posted February 5th, 2010

Alain Bonny On: Rafale Care, One Year Later

02/01/2010

By Alain Bonny

Alain Bonny is the head of Paris-based Dassault’s Military Support Division, DGSM (Direction Générale du Soutien Militaire, in French). He describes in the article below the characteristics of the support and maintenance contract the company and the French government signed about a year ago regarding the Rafale. The first of its kind to be concluded in France as far as fighter aircrafts are concerned, “Rafale Care” has opened the path to new forms of PPPs (Public-Private Parnerships) in this field.


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Two-Seat Rafale In Flight (courtesy: Dassault Aviation; F. Robineau)
Two-Seat Rafale In Flight (courtesy: Dassault Aviation; F. Robineau)

A “Trademark for MCO”?
Having a long-held experience in support and sustainability under its belt, Dassault Aviation currently supports, by an large, about 2,000 military aircrafts owned by approximately fifty customers from thirty different countries. In the case of some of the customers, such a service has been sustained for about fifty years: it is the case for instance of the support we provide for the Mirage III, among other aircrafts. This allows Dassault to enjoy unique and valuable lessons learned regarding the aircrafts the company designed. For half a century, Dassault Aviation, along with its suppliers, has had therefore to find solutions to fix the problems of obsolescence which never failed to arise. In order to deliver such a service in the best manner possible, Dassault Aviation created as early as 1997 a specific division in charge of support and maintenance of military aircrafts, the DGSM for “Direction Générale du Soutien Militaire“, which includes nowadays about 500 people.

For about fifteen years, our various customers have become progressively aware of the importance of support. When they purchase a fleet of aircrafts from Dassault Aviation, they are of course looking for operational superiority, but they also seek:

  • readiness
  • at the right price
  • while preserving their independence.

Readiness is not only tied to the airplane and its reliability. Support is also necessary, which involves properly and timely trained personnel, up-to-date documentation in light of the latest standards, etc… Price is, of course, of the utmost importance: one sometimes forget that an aircraft’s lifecycle support – including the initial support (purchased along with the airplane at the outset), as well as the functional support (repairs, re-supply, maintenance) – costs over a period of forty years as much as the aircraft itself. Because of its complexity, support is increasingly trusted to professionals via MCO contracts (Maintien en Condition Opérationnelle, in French) – which corresponds in English to the concept of Full In Service Support or FISS – or via outsourcing, so that the clients can fully concentrate on their core mission, i.e. operations.

With this trend, however, comes a risk. Because the term “MCO” has become fashionable, everyone has been producing “MCO” even when what is sold as such is not really MCO: indeed, a trademark for “MCO” should be created! Some decision makers may have believed that the MCO services they were acquiring would act like a magic wand, which was going to solve all their readiness issues. This has not alas always been the case, far from it. MCO does indeed cover many different meanings, some rather easy to implement (such as updating documentation on a yearly basis on a fixed-price basis), others much more complicated (such as outsourcing the full readiness of an entire fleet of fighter aircrafts). All this is indeedcalled MCO, but covers very different means, commitments and costs.

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Detachment of four two-seat FAF Rafale (courtesy: Dassault Aviation, K. Tokunaga)

Dassault’s Approach: Working Towards “No Headache Contracts”
For Dassault Aviation, MCO is a very useful tool to achieve the best cost/readiness ratio: in particular, in order for MCO to be successful, there must be a vision of success shared between the customer and the manufacturer. It can be helpful to blur the differences between the one giving the orders and the one carrying them out, in order to avoid too much rigidity as far as contractual positions are concerned.

Regarding the support of the Rafale, the company has two different set of arrangements:

  • regarding exports, Dassault Aviation, along with its partners, Thales and Snecma, cover, within the framework of an integrated structure (“GIE Rafale“), the totality of the services for the aircraft, as well as its support (with the exception of weaponry): some customers have been calling such a solution the “no more headache contracts’.
  • Regarding the French Rafale, Dassault Aviation initially wanted to adopt a similar strategy, i.e. outsourcing support to the three manufacturers.This has not been entirely possible, because the French government for instance plays a special role with regard to the maintenance of the engines via specialized state-owned facilities within the SIAé (Service industriel aéronautique ). A taylored MCO contract was nevertheless concluded at the end of 2008 between the government and Dassault Aviation regarding all the equipment covered by the company and its OEMs: this contract is known as “Rafale Care” and has been qualified as “groundbreaking” by General Verhaeghe, head of the MoD’s Integrated Maintenance Organisation (SIMMAD, which stands for, in French, “Structure Intégrée de Maintien en condition opérationnelle des Matériels Aériens du Ministère de la Défense“), for it opens the path to other manufacturers in this area.

“Rafale Care” can be described according to the two main following characteristics:

  1. A global approach to support
    Instead of, on the one hand, multi-contracting case-by-case repairs and, on the other hand, other support services (e.g. databank updates; technical support; etc…), “Rafale Care” is a unique MCO contract covering the support of the Rafale as a whole, as far as all Dassault Aviation equipment is concerned, on a fixed-price basis defined according to the customer’s flight hours and for a period of ten years. This contract, born out a strong government will (SIMMAD, of course, along with General Verhaeghe and IGA Armando, but also MMAé, EMAA, EMA, SIAé and DGA ), turned out to be very innovative, as it was the first of its kind in France in the field of fighter aircrafts in regards to three aspects: its coverage; its length; and its flight-hour-based concept.
  2. A Balanced Risk-Sharing Approach
    The search for a balanced agreement has led to a risk sharing approach between Dassault Aviation and the French government: on the company’s part, the challenge is to give a guarantee on a very high reliability of equipment for the next 10 years; on the state’s part, it is to take a long-term – ten years – commitment. The length of the contract, as well as the company’s experience in this type of arrangements regarding the MCO of other aircrafts (such as the Falcon), did indeed allow Dassault Aviation to significantly reduce the costs of the overall contract. “Rafale Care” ensures the support of both Air Force and Navy fighter aircrafts [3]. Is covered all Rafale equipment (except for the engine, radar and countermeasures), i.e. a total of some 1,300 parts from 71 OEMs.
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Rafale on the aircraft carrier Charles de Gaulle courtesy : © DASSAULT AVIATION / V. ALMANSA (www.meretmarine.com; 15/12/2008)

Such a global and coherent approach will be especially welcome, when the time for the implementation of regulations governing airworthiness, currently emerging on the military side (e.g.: FRA 2,1 FRA 145, etc.), comes.

A Promising Outlook: Reaching out to Theaters
One year into “Rafale Care”, the balance sheet is extremely positive. The commitments made by Dassault Aviation have all been met and the dynamic that has been generated among the different OEMs seems to be a gauge for success in the future.
Indeed, even if “Rafale Care” has somewhat upstaged the other MCO contracts implemented or proposed by Dassault Aviation to the French Government, it is not absolutely unique, since the company has taken a similar step in regard with other fighter jets, such as the Mirage 2000 [1]. The company has also proposed, in partnership with the SIAé and DCI-Airco, to become fully in charge of the maintenance of the French Alphajet fleet. In another area, one should also recall that the recent construction of Dassault/Thales’s simulation facilities (CSR for “Centres de Simulation Rafale“) in Saint-Dizier and Landivisiau [2] has been accompanied with similar MCO contracts showing the same characteristics, i.e. a multi-year readiness-based approach.
Another interesting development is the fact that Dassault has been the very first defense industry, along with Thales, to sign the new Convention on Reserves with the French government in October 2009: this new convention (not unlike the British “Sponsored Reserves” concept) provides a legal tool for Dassault to call on volunteers (within Dassault Aviation or not, whether Reserve or not), who will be assigned as reserves and in a position to be deployed in war theaters to assist in MCO tasks, while enjoying the same level of legal protection as military personnel. Such an in-theater outsourcing was till now rather limited, precisely because of the lack of a relevant legal framework in France.
As one can see, the range of services and support offered by Dassault Aviation is at this point rather wide and is only limited by what the customers themselves may choose to leave in the hands of the private sector.

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Additional references:

[1] Gilles Tuduri, Contrats de maintenance des Mirage 2000 brésiliens, Dassault Magazine, issue # 142, Winter 2008-2009, p. 4.

[2] LV Thomas Letournel, Rafale Simulator: la simulation au service de l’entraînement, Cols Bleus, issue # 2895, January 24th, 2009, pp. 17-23.

[3] See also for instance the ECPAD video showing a series of deck-landing and catapulting by the Rafale and E2-C Hawkeye on the USS Enterprise off the French Coast in 2007.

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***Posted February 1st, 2010

The Tigers: Part of the “Musketeer Task Force” in Afghanistan

Born in 1976 from a Franco-German initiative and deployed for the first time in a theater of operation last July, three French Tiger helicopters from the Pau-based “5e RHC” (5e Régiment d’Hélicoptères de Combats) are now part of the “Musketeer Task Force” deployed at Kabul airport (along with three EC725 Caracals, two AS 532 Cougars and three SA 342 Gazelles “Viviane”) and implemented by the ALAT (Aviation Légère de l’Armée de Terre, i.e. French Army Light Aviation). They were air-transported by maintainers from the “3e Escadrille de maintenance d’hélicoptères” via Antonov 124.

French forces in Afghanistan are using the Tiger helicopter HAP (“hélicoptère d’appui et de protection“, i.e. close support and protection helicopter) for armed reconnaissance and fire support for the ground troops. The French operate the Tiger as an escort of the new Caracal, while dual Gazelle-Tiger patrols are being considered: “Mostly used to escort Caracal helicopters or hardened convoys, the Tiger enjoys a strong deterrent effect. No helo has been hit since their initial deployment, even though the conditions of operation are especially tough. Stationary flights, which equal vulnerability, are out of the question, so the Tiger never slows down under the 150km/h limit [about 90 m/h]. Ready to take off in less than half an hour, they operate … like the cavalry flying out to rescue their mates on the ground and it is the vocation of the ALAT”, concludes the French website “Helico Passion“.

After six months of deployment, the Tiger has indeed performed well in the challenging climate and altitude conditions of Afghanistan: according to Asian Defence, “the Tigers put in around 30 hours of flight time each per month in support of the French Forces and the ISAF (…). Depending on the situation, the Tiger can fly at a high altitude or at tactical combat flight profile (…). Since arriving in the Afghan theater of operations, the Tiger helicopters have maintained an availability level of around 95%”.

The French MOD plans to order 80 of the new EADS Eurocopter helicopters.

Photos credit: Thomas Goisque, 2009 (copyright: EADS)
(some of these pictures were first published last September in the French magazine Paris-Match)

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***Posted February 1st, 2010

Richard Aboulafia’s Assessment of the Year Ahead

The Aberration of the Large Jetliners’ Growing Market
We’ve just finished Teal’s 2009 World Aircraft Overview, and total deliveries in 2009 grew 3.7% by value over 2008 (it’s remarkably easy to forecast this year’s deliveries when we’re in the fourth week of December). Most of that came from military markets (which grew an impressive 14%), and the civil market grew by a scant 0.2%.
However, while business and regional jet OEMs were clobbered, the large jetliner market grew by 10.1%. Some of that was a recovery from the 2008 Boeing machinist strike, but it represents a remarkable level of growth that’s completely out of sync with the rest of the world. It’s a number that makes this industry unique.
Can you name any other manufacturing or service industry that grew in 2009, aside from foreclosure services and food stamp printing companies?

This means that either our industry is approaching Ringo Starr levels of sheer good fortune, or, more likely, that most of the aircraft industry remains a lagging economic indicator. Assuming it’s the latter, the pain will catch up to us some time in 2010.
First, the facts. Air traffic is down by about 6% from its peak, and by 10-15% from where it would have been if the economy hadn’t tanked. The International Air Transport Association anticipates $11 billion in industry losses in 2009, following nearly $17 billion in 2008. Fleet utilization is way down, and there are 2,500 jets parked in the desert. Yet jetliner output remains at record highs.

From a forecasting standpoint, there is no way to justify this. But the optimists in this industry come at the problem not from a demand forecasting standpoint but from a financing standpoint (for a good overview from an optimistic financier’s perspective, see Boeing Capital’s Kostya Zolotusky’s latest.

tableau
From: http://www.iata.org/pressroom/facts_figures/traffic_results/2010-01-27-01.htm

A Replay of the Housing Market Crisis in the Making?
The optimists see assets that can be financed, even if the world is fast running out of customers that actually want these assets.
A key reason this industry has been able to maintain enviable financial conditions is government finance. Most people in the industry are familiar with the growing Ex-Im Bank and European Export Credit Agency (ECA) role in financing aircraft sales, but for a lucid and balanced piece that brings it all together, see Dan Michaels’ recent Wall Street Journal story.

To summarize: The US Government, a highly leveraged institution, whose debt is bafflingly rated AAA, is extending that tenuous debt rating to help build jets for export customers (including Emirates, the national airline of an even more highly leveraged state). On the other side of the Atlantic, Airbus overproduction is propped up by analogous ECA schemes. Government-backed finance now plays a role in about 40% of new jet transactions. This government assistance helps keep employment up and smooth out market cycles. But it’s helping to maintain production rates at a record level, not at a sustainable mid-point level.
The WSJ article quotes Robert Morin, head of the Ex-Im bank, as saying that this financing doesn’t cost the US taxpayer anything. He’s right. Financing jetliners is great business, especially if you’ve got low interest rates.

  • But there’s one small detail. As governments help finance unneeded new jets, the resulting overcapacity drives down the value of existing equipment. With the cash-for-clunkers car finance scheme, the government at least made some effort to get rid of the older equipment that was being replaced. But with its financing program for new jets, the government shows little interest in dealing with the surplus equipment that’s languishing in boneyards.
  • Another small detail: the existing jetliners whose values are being destroyed are sometimes owned by government-supported financially-distressed institutions. In fact, also this month, ILFC’s debt was cut by Moody’s to a junk rating. This, of course, increases their dependence on government-backed financing. A gross simplification: the US government is putting its cash on the line to build unneeded jets, hurting the government’s share of a portfolio of existing jets.

Then there’s the small question of what happens next. Building lots of new planes made sense when you were getting clunkers out of the mix (anything with a JT8D powerplant). But then 737 Classic and older A320 values starting getting destroyed (United retired its last 737 Classic a few months ago).

Now, we’re watching current generation values and lease rates falling too. According to Aircraft Value News, the value of a 2001-model 737NG is 20% below its late 2007 peak.

What if traffic stays flat in 2010, or if the market takes another hit, for whatever reason? You’ll see more of the same: softening jetliner values, falling lease rates, and, possibly, more government-supported production of unneeded jets. Ex-Im and the ECAs will be on the hook for any jet financing losses that result. This sounds like the housing market. Fannie Mae and its brethren did fine when values were rising. It’s when times turn tough that governments lament financing overcapacity.

So, the first thing to worry about in 2010 is that this seemingly happy arrangement—government financing being used to prop up jet production in a seriously depressed market—goes horribly wrong. But the more likely scenario is that we simply run out of airlines willing to take jets. As airlines defer, narrowbody production rates will get cut, restoring sanity to a completely crazy market before the governments involved can make things worse.

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***Posted February 1st, 2010

Haiti: U.S. Lessons Learned From the Tsunami Relief Mission

By Ed Timperlake

Ed Timperlake was assigned by Undersecretary Mike Wynne to be the AT&L representative to the Department of Defense (DOD) Tsunami Task Force.


USNhospitalship

Lessons Learned From the Tsunami Relief Operation
Very early in recognizing the devastating death and destruction from the Haitian earthquake some in the media tried to draw immediate parallels to Hurricane Katrina. The real story is the US Military in Haiti was building on the lessons learned by providing aid and comfort to the victims to the Tsunami that swept through the Indian Ocean (IO). In actual fact, the political gamesmanship fostered by the media in trying to compare President Bush’s Katerina response to President Obama and Haiti abated except for the most fervent “Bush bashers.”  I believe the reason is President Bush’s grace, dignity and concern for human suffering was demonstrated when he joined with President Clinton in an across-the-board unified United States response.

The lessons learned for Haiti were forged on Sunday December 26 2004 a time when death and destruction swept throughout South Asia as a 9.0 earthquake occurred off the coast of Sumatra. A deadly Tsunami wave radiated out eventually costing over 150,000 lives.

The US Military Pacific command was ready to act with on scene support.  The Department of Defense was fortunate in having as Deputy Secretary Paul Wolfowitz who had previously served as Ambassador to Indonesia. Consequently the word came down quickly that Tsunami aid would be an “all hands on deck” DOD effort.One of the quiet issues in those days was sending US relief efforts into areas of Indonesia that had radical Islamic activity, and there was some indicators of relief helicopters taking fire. That didn’t deter, nor stop the effort.
The  Abraham Lincoln Carrier Battle Group was ordered on station along with the USS Bonhome Richard with a complement of Marines. Both ships of war were on a mission of mercy and arrived in peace. The Coast Guard sent a Cutter and overhead the US Air Force organized an air bridge to bring in supplies.

The Bush White House set up a classified VTC conference schedule between the National Security Council and the Pentagon to get constant updates and situational reports (sit-reps). It was a Bush White House -directed US Government wide unity of purpose to save as many as possible and also help the sick and wounded. It looks like President Obama’s team is responsibly and with skill doing the same.

picairtraffic
USAF Air Traffic Controllers in Haiti (http://chamorrobible.org)

Tsunami and Haiti: A Similar Logistics Challenge at a Time of War
The distances in the Indian Ocean were enormous and the challenges huge. Entire villages had been swept out to sea, other villages and towns as now seen in Haiti just collapsed into rubble. World wide aide groups, and NGOs gave valuable assistance and some countries rose to the challenge, while others didn’t.

When it was winding down word came back to those of us involved at DOD that the Muslim population of Indonesian was very grateful, in spite of the presence of the US military which could have been badly perceived at first. What was known at all times at DOD  is the fact that America is not at war with Islam, just those isolated fanatics who want us dead. Religion makes no difference if a country is in trouble and America’s global 911 capability is always ready.

Like Haiti the Tsunami Relief was indeed a massive show of US military resources (the only ones able to respond on such a short-notice), while also deeply engaged in combat in Iraq and Afghanistan. From current reporting, it looks like the US military response in Haiti has been superb. From a Carrier Battle Group, to Marine Amphibious forces, the Coast Guard and a hospital ship on the way, the response has been an overwhelming commitment to the mission.

One area from what I can read deserving special praise is USAF air traffic controllers. It is reported that runway operations both in the air and on the ground are, to say the least, confusing and potentially deadly. Remember the worst aviation disaster in history was on the island of Tenerife and it was a combination of air traffic control and a determined Airline Captain who made a fatal decision to take off with crossing runway traffic on the ground.
Those young Air Force men and women who are controlling Air traffic in very primitive conditions deserve gratitude: over 1,400 aircrafts are trying to sequence in and the pressure for zero margin of error to avoid a midair or taxi accident is huge…

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***Posted February 1st, 2010

U.S. Military Warned Again About Loss Of U.S. Industry

01/31/2010

By Richard McCormack
(Manufacturing News)

The Eradication of the U.S. Industrial Base Worsened by the Crisis
The U.S. military risks not being able to field an army if Congress does not start addressing the loss of the American industrial base by reforming tax laws to encourage domestic production. “The defense of our country is in perilous state,” according to Col. Michael Cole, deputy chief of staff at the Joint Enabling Command of the U.S. Joint Forces Command. “The message of the few who are aware of the problem is not reaching the key government decision makers.”

Strategies currently in place to deal with an industrial base that is increasingly unable to supply the military with manufactured parts and electronic components are not working, argues Cole.

DMSMS Program
DMSMS Program

The Diminishing Manufacturing Sources and Material Shortages (DMSMS) program does not address the bigger issues involved with the “eradication” of the U.S. industrial base. The loss of U.S. industrial capability “is no ordinary budget problem that can be solved by an infusion of money, even if there was money to spare,” according to Cole in a paper on the subject. “The unfortunate aspects of DMSMS are that no U.S. agency is responsible for managing industrial policy as it relates to national defense, and the loss of the industrial base is a self-inflicted wound created ultimately by corporate tax laws that encourage offshore manufacturing.”

The U.S. manufacturing sector has been in trouble for years, but the recession made things even worse, Cole notes. An inevitable decline in the defense budget does not bode well for DOD’s ability to support the industries that are involved in the production of weapons system.

Moreover, as program managers confront reduced budgets, they are becoming more motivated to buy cheap components made overseas. “If there was ever a crisis situation with China it is likely our shipments from China would cease,” says Cole. “A country devoid of its industrial base with plenty of soldiers left to fight can hardly wage a long-term war. Knowing that Congress is aware of the DMSMS problem and has formed a commission [the U.S.-China Economic and Security Review Commission] to study it does mean that there is hope for a solution.”

Towards the Creation of  a “National Security Resources Board”?
Currently, the DOD “solution” is to issue regulations requiring program managers to use a “Shared Data Warehouse” on parts and supplies “so that other programs may benefit from the solution,” Cole notes. The second strategy is for program managers to perform so-called “resolution cost tradeoff studies when evaluating solutions for non-available parts” as contained in DMSMS Guidebook.

These programs have “proven ineffective,” says Cole. “The simple fact that the U.S. does not have an empowered agency to manage DMSMS and it is cheaper to manufacture offshore are the issues Congress must address.”

Cole recommends that DOD create a new “National Security Resources Board,” an idea promoted by Joe Muckerman, former director of DOD’s Office of Emergency Planning and Mobilization. Such a board would be responsible for assuring there is a strategy to deal with rebuilding American industry so that it is capable of producing the weapons systems that are needed.

Secondly, the U.S. tax structure is working against the sustainment of an industrial base upon which the military depends. The corporate tax rate of 35 percent is “embedded in the cost of each item in each weapon system sold in the United States,” Cole notes.

Combined with the additional corporate taxes in 24 of 50 states, the U.S. corporate tax rate is the highest n the world, giving U.S. industry little reason to stick around. Furthermore, other nations collect value added taxes and rebate them on exported goods to the United States, leading to yet another disadvantage for American-based producers and another incentive for U.S. production to ship out.

Cole says there have been plenty of studies on the “fair tax,” which would require the imposition of a revenue neutral national sales tax on products at the final point of sale, while eliminating corporate and individual income taxes.

McCormicktable1
Credit: http://www.oecd.org/

“With the abolition of cumulative corporate income taxes imposed on goods produced in the United States, American manufacturers would finally have the level playing field necessary to preserve the industrial base,” says Cole. Combined with creating a border-adjustable tax system, the United States might be in the position of rebuilding its industrial base. “The fair tax is by far the most comprehensive plan and a strategic answer to the DMSMS problem,” according to Cole. A fair tax proposal had 72 co-sponsors in the House of Representatives in 2007, and four sponsors in the Senate.

“One day, Congress will be forced to grapple with the effects of DMSMS and the eradication of the industrial base,” says Cole. “The best course of action is to act now to avoid dealing with the inability to acquire and sustain U.S. weapons systems during a national emergency. Tax reform through the fair tax and the National Security Resources Board oversight of the industrial base are DMSMS solutions whose time has come.”

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Colonel Michael Cole can be reached via e-mail at [email protected].

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***Posted January 31st, 2010