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US Army CH-47
Foreign Military Sales Efforts
Briefing to:
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.
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
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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
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)
Our Army at War - Relevant and Ready
Cargo Helicopter Airframe
Procurement Support
Situation…
• Opportunity… Leveraging New Production
• There is foreign demand for CH-47Ds (estimated 40+)
• IMMEDIATE OPPORTUNITY… Foreign Customers
(Jordan, Turkey, Argentina and Columbia ) have
expressed interest in Airframes
CHAPS Initiative…
• Sell CH-47Ds via Exchange/Sales and FMS programs
• Leverage proceeds with Remanufacturing $$$ to
procure new CH-47Fs at no additional cost to the
Army/DoD. Ratio: 1:1
Our Army at War - Relevant and Ready
CHAPS
Study…
• Explore CH-47D sales to leverage new procurement
- USG CH-47D sale via FMS, and reprogram funds for new
CH-47Fs
Our Army at War - Relevant and Ready
CHAPS
Study Results…
USG CH-47D sale via FMS, and reprogram
funds for new CH-47Fs
Extensive coordination at HQDA, OSD, and Congress
required
Concept approval… Army Acquisition Executive (AAE)
Congressional Action Required (Annual $$$
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)
Our Army at War - Relevant and Ready
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
Middle East: • Pakistan 4- 6
• Israel 10-20 • Thailand 6
Africa: • Jordan 8 • Malaysia 4
• Morocco 9 • UAE 4-12 • Taiwan NFA 4- 6
• Egypt 3-5 • Saudi Arabia 4-10 • Philippines 6
• Ghana 4 • Kuwait 4
South America: • Oman 4
• Argentina 1-5
• Brazil 4
• Chile 6
US Army - Boeing Assessment: 30+ Aircraft
Our Army at War - Relevant and Ready
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 )
Our Army at War - Relevant and Ready
Cargo Airframe Procurement
Support Initiative
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 2. HQDA Staffing…
G-4 Coordinates DA Staffing (G-3,
3. GSA… G-8, DASA(DEC), OGC, etc.)
GSA Aircraft Waiver (staffed/approved) AR 725-5 Waiver approved &
4. PM Cargo… transmittal to GSA
Conduct Exchange/Sale
w/Contractor
4. $$$ Credit & Use…
Contractor credits $$$ to new F-
Model procurement / New F-Model
Start
5. Contractor Direct
Commercial
Sale
Our Army at War - Relevant and Ready
Cargo Helicopter Airframe
Procurement Support
Integrated
Process Overview… Exchange & Sales and
FMS/Commercial Process
PM $ PM PM PM US F ModelModel
Contractor F Model F
AAE FRA Aircraft Exchange New F Model F Model
Briefing Request Waiver Sale Start Delivery
Title to US Contractor
$$$ Credited to
New Production)
G3
G-4
HQDA, DoD, DoS G-8
ASA (FM)
Coordination
DASA(DEC)
&
USASAC Commercial
Staffing Recondition CH-47D
DSCA Sale
OGC
OCL Delivery
DOS
Reconditioning
as required
( Commercial or FMS )
E&S Proceeds may be used for
procurement of “similar” items
Our Army at War - Relevant and Ready
CHAPS Approval Process
PM Cargo Helicopter
(“Project Inspiration”)
FMS Sales IPT Established
and CONCEPT Exploration TDY (DC)
CONCEPT
New Production
Exchange / Sales EXPLORATION Research, Legal, Intl
and FMS
Support
Actions PROJECT
EXECUTION APPROVAL
Request for Authority
(PM/PEO) to Proceed
Approval COL Crosby
MG Bergantz
G -3
-
DETAILED
Senior Staff OGC Mr. Hancq, Apr 04
G-4
- COORD MILDEP LTG Yakovac, 7 Jun 04
G-8
Coordination
G-4 (Supply Policy) 27 Apr 04
ASA-FM AAE
DSCA DASA (DEC) Mr. Hunter, 26 Apr 04
Congressional LNO
PROJECT
Review Dep Sys Mgt BG Sorenson, 26 Apr 04
APPROVAL Dep PP&R Mr. Damstetter, 7 Jul 04
ASA(ALT) / AAE Mr. Bolton
Our Army at War - Relevant and Ready
UNCLASSIFIED
Proposed CHAPS Schedule
ACTION FY04 FY05 FY06 FY07 FY08
PROCESS DEVELOPMENT
AAE (MR. BOLTON) 8 Jul 04
EXCHANGE/SALE
WAIVER 2 Aug – 30 Nov 04
HQDA/GSA
CONTRACT DEV/MOD 1 Oct 04 – 3 Jan 05
COMMERCIAL
1 Nov – 15 Jun 05
MARKETING EFFORT
ARMY EXCHANGE/SALE Jun 05
$$$
F – LONG LEAD Mar 05 – Feb 07
Jul 05
D – COMMERCIAL SALE
DELIVERY
NEW F MODEL
BUILD/DELIVERY
Feb 07 – Feb 08
Our Army at War - Relevant and Ready
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 )
Our Army at War - Relevant and Ready
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 !!!
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
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
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
Our Army at War - Relevant and Ready
Questions
C:\CHAPSDA(Mar04)Info.ppt
Our Army at War - Relevant and Ready
