Would Build First 100 Engines At A Fixed Cost

GE Aviation and Rolls Royce have pitched the Pentagon on a new business plan in which the companies would sell th DoD the F136 alternative JSF engine under a fixed-price contract.

Defense News reports that Russ Sparks, GE Aviation's vice president and general manager of military systems, and other GE and Rolls executives met Tuesday with Shay Assad, director of the defense procurement, acquisition policy and strategic sourcing and a top adviser to Pentagon acquisition chief Ashton Carter, as well as Marine Corps Maj. Gen. David Heinz, JSF program executive officer.

The plan offers the Pentagon 100 of the alternative engines under a fixed-cost no-cost-plus contract for delivery between 2013 and 2015. Sparks said the new proposal shifts more of the initial risk for the engine to the two companies rather than the military. He says Pratt & Whittney's main engine for the F-35 is almost $2 billion over budget.

F 136 Engine Test

Defense Secretary Robert Gates said as recently as Tuesday when he toured the Lockheed Martin F-35 assembly plant that "We feel strongly there is not a need for the second engine." (See accompanying report)

The Obama administration has repeatedly said it does not want the alternate engine, and has threatened to veto the defense appropriations bill if funding for the F136 engine is included. Leaders in both the House and Senate Armed Services Committees support the alternative engine program.

FMI: www.geae.com