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8.1 Intent Issue Beech Aircraft IRB CITY OF SALINA REQUEST FOR COMMI SS I ON ACT ION DATE TIME 1/11/93 4:00 P.t~. AGENDA SECTION: Administration ORIGINATING DEPARTMENT: APPROVED FOR ND' 8 City Manager AGENDA: 1 TEM I BY: Dennis M. Kissin~er BY: Resolution No. 93-4544 A RESOLUTION EXPRESSING THE INTENTION OF THE CITY OF SALINA, KANSAS, TO ISSUE INDUSTRIAL REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $60,000,000 FOR THE PURPOSE OF PROVIDING FUNDS FOR THE CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF A NEW FACILITY AND FOR THE PURCHASE OF MACHINERY AND EQUIPMENT TO BE LOCATED THEREON FOR BEECH AIRCRAFT CORPORATION. Background: Beech Aircraft Corporation has announced its intent to submit a proposal in a major U.S. Defense Department competition for furnishing the Joint Primary Aircraft Training System (JPATS). Beech has chosen Salina, Kansas as its primary location for production, flight testing and program management, if they are successful in being awarded this contract. In order to effectively prepare its proposal, Beech needs to establish as closely as possible its production facility, machinery and equipment costs. They have been working closely with City of Salina and Airport Authority officials on this project. This Resolution provides Beech with the ability to ascertain their costs of financing (through the IRB method), as well as calculate tax costs. In this contract award competition, quality, cost and overall value are critical. Actions such as these assist Beech Aircraft in the cost aspects of their proposal, thus enhancing the possibility of their success, with resultant economic benefits to Salina. Two city staff analysis memoranda and other related information are attached. Recommended Action: Approve Resolution Number 93-4544. COMMISSION ACTION NOTION BY SECOND BY TO: C I T Y 0 F SllLinn TO: FROM: DATE: SUBJECT: CITY MANAGER · DENNIS M. KlSSlNGER City-County Building · 300 West Ash Street · P.O. Box 736 Salina, Kansas 67402-0736 TELEPHONE (913) 826-7250 · FAX (913) 826-7244 MEMORANDUM 93-1 City Commission Dennis M. Kissinger January 8, 1993 Beech J.P.A.T.S. P~'oject and Requested IRB Financing Salina '111!' Project Background; Local Involvement In early 1992, upon learning of Beech Aircraft Corporation's interest in competing for the J.P.A.T.S. contract, Salina economic development professionals made early contact with Beech officials to encourage them to consider Salina for the project, asking what Salina could do to assist in their decision-making regarding project location. Salina representatives recognized early on, the extraordinary economic development opportunity this project would present for the successful community. This contact continued our policy of working closely with Beech and other existing local industries regarding opportunities for expansion. Information was provided to Beech over the next several months, while their corporate planning was underway. Beginning in September 1992, formal meetings between Salina and Beech representatives were held to discuss project specifics and details of any Beech, Airport Authority and City actions which might be necessary to have Salina as the primary project site in the J.P.A.T.S. proposal. A Salina Project Team was formed, led by the Airport Authority Executive Director, Chamber President, County Administrator and City Manager. Also included on the Salina team were the City Attorney, Airport Authority Attorney, City Director of Planning and City/Airport Authority financial advisors. A Beech Project Team included their Corporate Affairs Director, Salina Plant Manager, Project Manager, Accounting and Legal Counsel. Together, this was referred to as the Beech/Salina Working Group. The Beech/Salina Working Group spent an extensive amount of time and effort analyzing in detail the options available for project financing, ownership vs. airport authority lease issues, impact on current leases, and the various legal and financial implications of different strategies. After careful review, the current plan as proposed was agreed upon as the most effective, from the standpoint of the City, the Airport Authority and Beech. The project as proposed today was to be recommended to Beech corporate management, and the governing bodies of the City and Airport Authority. Memorandum 93-1 Page 2 Recent Beech/Salina Project History In 1989, the Salina City Commission (with current Commissioners Warner and Ryan on at that time) unanimously approved an Industrial Revenue Bond resolution authorizing up to $20 million in IRBs for expansion, capital improvements, machinery and equipment related to bringing a portion of the Beechjet production to Salina. Actually, only $5.2 million of the authorization has been used. At the time, Beech officials projected an increase of between 35 and 50 jobs, with a payroll increase of $1 million. Actual results were: increase of over 300 jobs (260 dedicated to Beechjet). Payrolls increased from $5.4 million in 1988 to $14.3 million in 1992, an increase of $8.9 million. The economic impact of the Beechjet project in Salina has far exceeded anyone's expectations at the time. Beech Salina employment grew from 312 in 1988 to the present 613. This success at Beech can be viewed as one of the reasons Salina's economy remained relatively strong during the recent national recession. These 300 additional industrial employees produce positive impacts which reverberate throughout the community. For example, the United Way and other charitable support from Beech and its employees grew from $50,000 in 1989, to $125,000 in 1993. Projections of J.P.A.T.S. Impact While looking at the fact the Beechjet 1989 IRB project far exceeded expectations, we must be careful in assuming too much for the J.P.A.T.S. project, should it occur. Beech officials are extremely conservative on these matters (as they were in 1989). They clearly wish to make sure they are not seen as "over-promising" in this unpredictable climate. While we can all hope that current J.P.A.T.S. projections would be exceeded, we must use conservative, reasonable numbers in benefit analysis. We all agree that it is better to understate and be pleasantly surprised than to overstate and be disappointed. In Roy Dudark's analysis memorandum, prepared in accordance with our economic development tax exemption policy, he uses conservative assumptions developed in consultation with Beech officials and Tim Rogers. With production jobs involved in the range of $10 to $14 per hour, Mr. Dudark has used $11.25/hr. in his calculations. In addition, Mr. Dudark has used a figure of $28.5 million for actual expected expenditures, as compared to the $22-$25 million discussed at the Beech briefing as initial investment, and the $60 million in total IRB authorization requested. Staff realizes these varying numbers can be confusing. It is really difficult for Beech or anyone else at this point to predict total expenditures during the project life. However, in order to do analysis calculations, we must use a "middle-ground" of reasonable assumptions. Memorandum 93-1 Page 3 The $28.5 number was used by Mr. Dudark to project taxes potentially foregone during a ten-year period. If that projection is too high (as it was in 1989), the foregone tax revenue projections are also too high. Conversely, if $60 million was ultimately to be spent, both the tax consequences and the economic benefits (jobs, etc.) are probably understated. Staff agrees with the applicant that it is best to set the maximum IRB amount at $60 million. This covers the relatively "firm" projections for initial building and equipment expenditures, replaces the $15 million in the previous (Beeehjet-related) authorization, and allows the company to respond to opportunities which might occur during the project period providing additional growth and investment in facilities, equipment and jobs at Beech Salina. This authorization of IRBs in amounts higher than current projected expenditures is common in major Kansas industrial projects. For example, the major aviation companies in Wichita (Boeing, Cessna, Beech) have significant IRB authority already granted by Wichita or Sedgwick County. In fact, Boeing currently has a $2 billion IRB authorization from the City of Wichita, without firm project expenditure projections. City's Economic Development Tax Exemption Policy As you know, economic development tax exemptions in Kansas are available by two means: (1) A 1986 Kansas constitutional amendment, passed statewide and in Saline County, allows the use of property tax exemptions for the creation of basic industrial jobs; (2) Under Kansas state law, industrial projects financed through the use of Industrial Revenue Bonds are automatically property tax exempt for ten years. It is under this second (IRB) provision that Beech is making application to the City Commission for this project. Even with the use of IRBs, the City still uses its tax exemption policy, established by Resolution in 1991. That policy contains a formula for calculating the amount of property tax exemption generally available to an industrial firm locating or expanding in Salina. The normal maximum abatement would be 100% for years 1-5, and 50% in years 6-10, even for IRB projects. However, the city's policy does contain a provision, designed for use in just this type of project, which allows the City Commission to deviate from the regular formula, based on the unusual nature and magnitude of a project and extraordinary benefits of the project to the community. The J.P.A.T.S. project meets the above criteria: (1) The highly competitive defense contract process and the city's consideration of this at the pre-bid stage, certainly qualify as "unusual nature", with the full 10 years tax exemption an important factor in whether this project would proceed in Salina. (2) The investment and high-paying jobs projection clearly qualify this as potentially bringing extraordinary economic benefit to the community. Memorandum 93-1 Page 4 By passing the IRB Resolution as proposed, the Commission would be making a specific finding of extraordinary benefit under its tax exemption policy, and ailowing the full ten year exemption specified in state law for IRB projects. Summary and Recommendation The Salina community has at its disposal certain economic development "tools". Those include, local training capabilities, IRB capabilities, tax exemption capabilities, a strong business support system, and specific facility capabilities based on having an Airport Authority at a former military base. Other communities, in Kansas and in other states, have their own set of "tools". The J.P.A.T.S. contract consideration will be extremely competitive, with seven major corporations making proposals. The Navy and Air Force will be looking carefully at the aircraft capabilities, as well as the total cost (a real "value" decision). We can fully expect that the other communities involved, with Northrop, Lockheed, etc. will be recognizing this outstanding economic development opportunity, and be using all the economic development "tools" at their disposal to maximize their chance of success. It seems appropriate and logical that Salina also maximize our J.P.A.T.S. chances by working in partnership with Beech Aircraft Corporation in using our own "tools". By passage of this IRB Resolution, and the ordinance authorizing Airport Authority G.O. bonds, the Salina City Commission would be making the most effective use of the resources and capabilities at its disposal. City staff strongly recommends approval. PLANNING AND DEVELOPMENT Salina, Kansas 67402-0736 'llJl' TO: Mayor and City Commission FROM: Roy Dudark, Director of Planning & Development/~ Date: January 11, 1993 Subject: Beech Aircraft IRB Tax Exemption Introduction Beech Aircraft Corporation has announced plans to complete final assembly and flight testing of the Beech PC-9 MK II trainer in Salina, if selected for the Joint Primary Aircraft Training System (JPATS). The U.S. Navy and U.S. Air Force is scheduled to award the contract in February, 1994. Industry observers indicate that the JPATS program may have a longevity of up to 15 years with as many as 800 planes produced. Nature of Project The JPATS project would be housed in a new 150,000 building addition to the company's nearly 600,000 square foot existing operation in Salina. Employment associated with the JPATS program in Salina is expected to number 200 people, including manufacturing, flight testing, and program management personnel. The estimated capital cost of the project is $8.5 for the building and $20 million for machinery and equipment. Beech Aircraft is requesting that the buildings and equipment associated with the JPATS program be totally exempted from ad valorem taxes for 10 years, in accordance with Kansas Statutes governing Industrial Revenue Bond projects. Amount of Property Tax Exemption The city's tax exemption policy is structured to produce a level of tax exemption in relationship to the number of new jobs created and the amount of capital investment. Based on 200 new jobs and $28.5 million of investment, the stated criteria results in an exemption of 626%. Under normal circumstances, the actual exemption would be limited to 100% for years 1 - 5 and 50% for years 6 - 10. However, the adopted policy resolution grants the City Commission the right to deviate from the criteria for economic development projects which, due to their unusual nature or magnitude, offer extraordinary benefits to the community. Staff Report Page 2 As shown on the attached spreadsheet, a 100% tax exemption for 10 years amounts to an estimated $4,098,601. Due to the depreciated value of the machinery and equipment, 70% of the total or $2,850,558 would be exempted during the first five years. The tax exemption request will affect five taxing districts in proportion to their respective mill levy. The largest impact will be to the State Education Fund, which with a 1992 mill levy of 32.000 or 31.4% of the total levy, would not receive revenues totalling $1,286,961 over the 10 year period. The City of Salina would have the second largest impact of $1,200,890. Such "lost" revenues is predicated on the assumption that the project would occur without the tax exemption. The actual dollar amount of the exemption will depend upon final assessed values and future mill levies. At the end of 10 years, the property would become fully taxable and generate about $206,000 per year. Beech Aircraft will also receive the following additional economic incentives: State Job Tax Credits ($1,500/employee) State Investment Tax Credits ($1,000/$100,000) State/Local Sales Tax Exemption ($3,400,000 x 6.9%) City Waiver of Building Permit Fees $300,000 85,000 234,600 16,433 Total $636,033 While not quantifiable with available information, the project will require an increase in local governmental expenditures to provide public services to the manufacturing facility as well as the new households and school age children resulting from the added employment and population growth. Project Benefits The proposed manufacturing facility will produce both economic and fiscal benefits to the community. Economic benefits are both temporary and permanent. Temporary benefits involve the purchase of materials and employment of workers to construct the building as well as the purchase of machinery and equipment. These benefits are reflected in the $28.5 million cost of the project. Permanent benefits include direct expenditures for wages as well as induced activity in the form of retail sales. Beech Aircraft intends to hire 200 employees to fill various positions including sheet metal worker. On average, each position will receive $11.25/hr. for an annual wage of about $22,500. Economic benefits flow from this direct annual increase in payroll as follows: Staff Report Page 3 Direct New Jobs Created Direct Payroll Increase ($22,500 avg.) Secondary Spin-off Jobs (.64 of direct) Secondary Payroll Increase ($15,000 avg.) Effective Buying Income (.65 of payroll) Retail Sales Increase (.43 of payroll) 200 $4,500,000 128 1,920,000 4,173,000 2,760,600 The manufacturing facility and related economic activity will also generate fiscal benefits through taxation of retail sales. Estimated sales tax revenue resulting from the project over a 10 year period is shown below. Sales Tax Receipts City $ 331,200 County 124,200 U.S.D. 305 -0- Library -0- State $1,352,400 Total $1,807,800 Additional financial benefits resulting from the project include property taxes collected on new dwelling units to house employee families and state aid received for new students in the school system. These revenues will help offset the increased public service costs. Conclusion Beech Aircraft and the proposed JPATS project appears to meet the intent and purpose of a property tax exemption based on the manufacturing nature of the business and demonstration of economic benefit. An analysis of the costs and benefits of the project has been provided. The Board of City Commissioners may, at its discretion, approve a tax exemption for the project under Kansas Statutes when deemed to promote the best interests of the City of Salina. Attachment: Tax Exemption Calculations ATTACHMENT Beech Aircraft Tax Exemption Request 1/11/93 Assessed Percent Year Valuation Exemption 1 $7,019,000 100% 2 $6,304,000 100% 3 5,589,000 100% 4 4,874,000 100% 5 4,159,000 100% 6 3,444,000 100% 7 2,734,000 100% 8 2,0]9,000 100% 9 2,019,000 100% 10 2,019,000 100% Totals $ Mill Levy Share of Total Levy Valuation Data Cost of Buildings & Improvements Estimated Appraised Value (.95) Assessed Value (25%) Cost of Equipment (Dept. over 7 yrs. ) Assessed Value (25%) Total Mill Levy Taxes Exempted $715,980 643,046 570,112 497,]77 424,243 351,309 278,884 205,950 205,950 205,950 $4,098,60] $8,500,000 8,075,000 2,019,000 20,000,000 5,000,000 102.006 ................ Taxes Exempted .................. City county USD 305 Library State Ed. $209,782 $152,504 $83,054 $35,083 $224,817 188,412 136,969 74,593 31,509 201,916 167,043 121,434 66,133 27,935 179,015 145,673 ]05,899 57,672 24,362 ]56,114 ]24,303 90,364 49,2]2 20,788 133,212 102,934 74,829 40,752 17,214 110,311 81,713 59,402 32,351 13,665 87,569 60,343 43,867 23,890 10,092 64,668 60,343 43,867 23,890 ]0,092 64,668 60,343 43,867 23,890 ]0,092 64,668 $1,200,890 $873,002 $475,438 $200,831 $],286,961 29.849 21.718 1].882 5.057 32.000 29.3% 21.3% 11.6% 4.9% 31.4% State Misc. $10,740 9,646 8,552 7,458 6,364 5,270 4,183 3,089 3,089 ..3,089 $61,479 1.500 1.5% Tax Exemption Data Base Exemption Added Jobs Above Base Added Investment Above Base Total Calculated Exemption Total Allowed Exemption 25% 398 203 626% 100% Beech Aircraft Corporation Corporate Affairs Department PO Box 85 Wichita KS 67201-0085 316 676 7689 COeechcrafi A_- ~1 ifa- Company News Release Jan. 7, 1993 Jim Gregory Tel. (316) 676-7689 Fax. (316) 676-8867 Beech Leads Stronq OPATS Traininq Team SALINA, Kan. -- The Joint Primary Aircraft Training System (JPATS) covers all aspects of training, from courseware to airframe. Beech Aircraft leads a world-renowned team to propose the most cost effective, low-risk training system solution for U.S. Air Force and Navy primary pilot training. Since Beech and British Aerospace (mAe) signed a teaming agreement in June, both companies have been working closely together on the JPATS Ground Based Training System (GBTS). If Beech wins the JPATS award, employment associated with the program in Salina will number about 200 people, including manufacturing, production flight test, and program management personnel. These 200 people are expected to generate an annual payroll estimated at $4.5 million. Additionally, Beech will need another 150,000 square feet of manufacturing space. o Beech chose mAe to develop the GBTS because of the company's extensive experience in the design and development of aviation training systems. In addition to BAe's own civilian primary flight training colleges, the company is prime contractor for the Royal Saudi Air Force (RSAF) primary pilot training system. This includes the design, development, implementation and support of a total PC-9 training system and is similar in concept to the requirements of the U.S. Air Force and Navy. -more- JPATS... 2 BAe is totally familiar with the needs of the primary student, having produced and operated a PC-9 GBTS to satisfy those needs. The requirements of the GBTS for the U.S. Air Force and Navy are in early stages of definition. Full development of GBTS components will begin after the contract is awarded. However, to ensure that the PC-g MkII GBTS is tailored to the current requirements and closely integrated with the aircraft, a combined Beech/BAe team has been established at Beech~s Wichita facility, including permanent BAe program and engineering representatives. The fundamental message promoted by the Beech/BAe team is one of a total training solution. To this end, the GBTS will be based on a suite of training devices and complementary courseware to enable the most cost effective training of primary students. The Instructional Systems Development Process will be used to determine learning objectives by device, and will provide an ongoing feedback loop. The backbone of the training will be hands-on flying in the PC-9 MkII aircraft, which will be supplemented by ground based training and integrated throughout the syllabus. All training devices will support courseware developed in conjunction with Air Force and Navy subject matter experts. This team approach is expected to produce knowledgeable and capable students, who will be able to progress with confidence to the next stage of pilot training. It is clear that the Beech team has the tools, the most relevant experience, and the ability to produce the best total training value for JPATS. Beech Aircraft, a unit of Raytheon Companyj is a leading aviation company. It builds, markets and supports a full line of general aviation aircraft, ranging from piston-powered models to jets, for the commercial, military and regional airline markets. -bac- ('~h~ The Beechcrafter A publication about Beech Aimraft Corporation June 16, 1992 Beech Aircraft chooses British Aerospace Defence to provide JPATS ground based training systems Beech Aircraft Corporation and the Military Aircraft Division of British Aerospace Defence, Ltd., have signed a teaming agreement to collaborate on the U.S. Military Joint Primary Aircraft Training System (YPATS) competition. Beech is seeking to be the prime contractor for the JPATS program, including aircraft and ground based training systems. This new training system will replace current U.S. Navy T-34 and U.S. Air Force T-37 training systems. Beech will offer a missionized version of the Pilatus PC-9 advanced turboprop trainer. Deliveries of the new entrant, to be called the Beech PC-9 MkII, are scheduled to begin in 1997. British Aerospace will be responsible for development of the ground based training system to include aircraft flight simulators, cockpit procedure trainers, courseware technical data, and computer based training. Most of the ground based training system, like the PC-9 MkII aircraft, will be manufactured in the United States. The Military Aircraft Division, based at Warton Aerodrome near Preston, England, has already developed and operated a complete PC-9 training system for the Royal Saudi Air Force of Saudi Arabia. Under that program, British Aerospace provides maintenance training, courseware, training aids, simulators and aircraft. Beech Aerospace Services, Inc., Beech Aircraft's wholly owned military Beech Aircraft President Jack Braly aircraft support subsidiary in Madison, Miss., will provide the contractor logistic support for YPATS if the Beech team wins the Air Force and Navy competi- tion. BASI already supplies contractor logistics support to all branches of the U.S. military. 'The addition of British Aero° space, with its extensive experience in training systems, in particular with the PC-9, strengthens the Beech JPATS team," said Jack Braly, president of Beech Aircraft. "We have put together an excellent team, with Feech and Pilatus building the aircraft, Beech Aerospace providing the logistics support, and British Aerospace developing the ground based systems." More than 135 PC-9s are in service eechcrafl throughout the world serving principally as primary trainers, logging more than 61,000 hours and more than 128,000 landings in a training environment. British Aerospace has unique experience in PC-9 ground based training systems, including simulators and training systems for the combat-tested Royal Saudi Air Force (RSAF). RSAF crews transition from the PC-9 to the British Aerospace Hawk and then on to advanced aircraft such as F-15s and Tornados. In the United States, British Aerospace and McDonnell Douglas jointly provide the T45 Goshawk for U.S. Navy pilot training. Since Beech Aircraft began building trainers in 1940, it has established a long and proud history of providing economi- cal high performance trainers for the U.S. military. Current Beech airplanes in the U.S. military's training inventory include the T-34C and the T44A turboprogs. Beech's newest military training aircraft is now flying in U.S. Air Force colors as the T-IA Jayhawk Trainer, a variant of the popular Beech jet business aircraft. The Beech YPATS team is steeped in the tradition of providing professional training and high performance, high quality systems for the military training role. Beech Aircraft, a Raytheon Com- pany, has been involved in aircraft training systems since 1940. It currently produces tanker/transport jet trainers for the U.S. Air Force and target missiles for the U.S. Air Force, Navy and Army. I / I Martin-Baker The Beechcrafter A publication about Beech Aircraft Corporation Jan. 7, 1993 Beech offem outstunding JPATS candidate Bccch flies first production PC-9 Mkll The first Beech-built lnxxluction pmto~ of the company's loint Prima7 Aircratt Training System (mATS) aircraft, the Beech PC-9 IVlkl/, made its maiden ~ght last month from the company's nirport in Wichita. "The fast ~ght was a success," said Beech's director o mATS Program. "We = met or exceeded nil of ~ our objectives." If Beech wins the mATS award, Rlemer employment associ- nmnber about 200 people, including manufnctm'ing, production ~ght test, and program tnanagement personnel. These 200 people are expected to Additionally, Beech will need another 150,000 square feet of manufnc- Beech is competing to be the prime contractor for the U.S. military's Joint Prima~ AircraR Training System. This new training system will replace current U.S. Air Force T-37 and U.S. Navy T-34 See I~-9 MkII on page 2 Beech Ai~ off~ = total training system for JPATS com~ The Joint Primary Aircraft Training Sysimn (mATS) covers all aspects of Iraining, from coursew~e to airframe. Beech Aircraft leads a world-renowned See Beech team on page 4 Beech'. flint produc~lon prototype of JPATS PC-9 MI(Il -. ,~,, ,,.-w~,':;~,m~..._ ~ ..~ 7 U~. A~ ~ T-lA ~ ~ay~wk's ~ ~ ~b~ ~ ~ & ~y's f~ ~ B~g~ W. Va ~A~~~a ~f-~ a~ s~ f~ ~ Jay~w~ ~ ~~ ~ght ~- See Jay~ on ~ge 3 laSmlCtor Pilot OP) transition to the new U.S. Air Force T-lA Sayhawk is now underway. IP transition m the In-ocess of training the instructors who will tench the first student classes -- began in Septetn- bet, bringing the T-lA one step closer to coming on line as the Air Form's new The fn~t class of prospective tanker/ training in the Jayhawk in January at Reese Ah- Force Base, Texas. As of the end of August, Beech Aircraft had delivered 21 Sayhawks to the Air Fot~.e. A Iotal of 29 we~ scheduled to be delivered by tbe end of 1992. The T-lA Jayhawk is a mililarized version of the Beechjet 400A busine~ aixcralL Both are powered by twin Pratt & Whitney JTISD-5 engines, d~veloping 2,900 pounds of thrust each and giving the airplane a top speed of 468 knots. Jayhawk reigns as Air Force's choice for pilot training Beech news round-up 1991. As thc manager, ho is responsible for ail activities o£ thc Salina Divisioa. Die~ is a hoard member of thc Salina United Way and was chairman of the Planning and AHocations Committee. He serves as a board member of Bank IV - Salina, and is on the local board of Boy Scouts of America. Beech iai-gets flown worldwide The MQM-10~ and AQM-3? are Beech's supersonic and subsonic ~rge~s. The MQM-10? is a ground-lannched, reusable target deployed by the U.S. Air Force, Army, and Navy, as well as international customers. The supersonic AQM-37 is an air-launched vehicle used by the U.S. Navy and NATO nations. MQJVIo 107 Becanse it has so man), capabilities, thc MQM-10'7 has be~ deployed for the; Iraining of air d~fcnse crews in suplx)rt of numerous weapons systems. It averages 20 flights per whi¢l¢ loss in more than B,000 missions. Th~ U.S. Air Force flies Dieker named to Beech's Executive Management group $ohn W. Dieker, Manager- Salina Division, has been named to Beech Aimrafl's Executive Management group. Dieker joined the company in 19/8 as Staff Assistant- Manufacturing, Special Projects in Wichita. In 1981, he became Assistant Foreman - 2nd Shift Machine Shop ~ons and the following year he was named General Foleman - Fabrication at the Selma, Alabama plant. His duties in Selma were expanded to include Facility Maintenance, and in 1986 he accepted a transfer to the Salina Manufacturing. He was promoted to Manager - Manufacturing in 1989 and was named Manager - Salina Division in PC-9 Mkll completes first flight the $5-6 billion range. The team ~hat Beech has assembled is experienced in providing total training ~ystems for military applications. For instance, Beech has been building training aircraft for the U.S. military since World War II. Addition- ally, with the Air Force Jayhawk pro- gram, Beech is experienced in missio~i~g foreign aircraft designs to U.S. military requirements. Bfil~ Aerospace has developed a PC-9 Iralning system for the Royal Sandi training systems. At its manufacturing facilities in Wichita, Beech is also conslrucling a second production prototype PC-9 Midi for the JPATS program. These Beech PC- 9 MklI prototypes will participate in an operational flight evaluation scheduled for this year. Thc PC-9 l~rlI is a missionized Pilatus PC-9. Missionization includes a ~utized cockpit, 0/0 ejection seats, a bird proof canopy, and single point refueling capability. The upgraded engine provides added power to accommoda~ a slight increase in missionization weight and is also designed to provide for lower life-cycle co~s due to being flat-rated at 1,2~0 shaft horsepower, down fiom the available 1,708 shaft horsepower. Test flights of Beech's engineering demonsUafion aircraft with the upgraded PT6A-68 engine have verified perfor- mance characteristics of the PC-9 M~H~ 'Everyone who has flown the Beech ~PATS airplane has been impressed with its performance,' Riemer said. 'It meets ail of the performance and handling requirements." ~PATS calls for more ihan 700 new aircraft. Total value of the contract is in AQM-3? Developed for the U.S. Navy, tho AQM- 37 has been updated for improved perfor- mance throughout its career. Versions can operam from 1,000 to 100,000 feet and at ~ up to Mach 4. AQM-37 MQM-107 .~.... 1i-/ ~.'. ~' ~.~ 3~' ' q,~ ~.~-- .~,~;.:' ,. - . · ~12N Air Force. This training system includes courseware, hardware, and instructors, and is being used to train military pilots who transition to the Hawk and F- 15. Pilatus Aircraft Ltd. is a renowned manufacturer of training aircraft. The Beech/Pilatus team has delivered nearly 9,000 training aL, craft worldwide. Beech Aerospace Services, Inc. located near Jackson, Miss., will provide conlractor logistics supl~rt for ~e JPATS. BASI employs 2,200 people in 49 states and nearly 40 counlries. 2 The Beechcrafler Beechcrd[! today: A leading aviation company Beech Aircraft Coqxn-agon enten 1993 as a leading aviation company, with products and services in many markets, both domestic and in~malional. Beech today is a company with annual sales in excess of $1 billion. The cmpo~ation's president is Jack Braly, who provides leadership and management direction to one of the world's largest manufacturers of aviation products. About half of Beech's revenue is · genera~ from the Bmly manufacture and sale of new commercial aircraft The remainder comes primarily from military aircraft and target missile sales, and the activities of its two major subsidiaries, Beech Holdings, Inc., and Beech Aero- space Services, Inc., as well as subcon- tract manufacturing for such firms as Boeing and McDonnell Douglas. In business aviation, Beech is recognized most widely as the manufac- turer of the King Air line ofjetprops. Over the past 29 years, Beech has built nearly 5,000 King Airs -- most of them fa' corporate operation. In recent years, Beech has also emerged as a jet manufacturer. Its Beechjet 400A has established a signifi- cant niche in the business ~ranspon market, and has also won endorsement from the U.S. military with its selection ns the U.S. Air Force T-IA Sayhnwk. Beech has always been known ns a builder of fine high performance piston aixcxaft. The company has been the largest manufacturer of piston-powered nirplanes for the past half-decade. In the speclnli~.ed regional airline market, Beech is recognized as one of the leadi,~g manufacturers of 19-passenger airliners in the world, and the premier In thc military market, Beech has btilt Irnining nmi special mission aircraft fa' the U.S. military almost continuously since 1940. Contractor support, handled through Beech's subsidiary, Beech fa' an increasing percentage of Beech's government income. Missioniziog commercial aircraft for the military continues to be an important part of Beech's business. Current programs include C-12s and the T-lA layhawk. The C-12 -- a version of the King Air -- has been a staple of the U.S. military inventory since 1974. Most recently, C-12s in utitity and special electronic intelligence configurations played a key role in Desert Storm. The T-lA Jayhawk-- the U.S. Air Fowe version of the Beechjet-- will soon come on line as the trainer for the next generation of tanker/transport pilots. Meanwhile, Beech is a major contender for the prime conWact to provide the Air Force and Navy with their next Irainer-- IPATS, or $oint Primary Aiwrafl Training System. Beech is teamed with Pilatus AL-craft, British Aerospace, and Beech Aerospace Ser- vices, Inc., to provide a total Waining system to fulfill the JPATS role. Much of Beech's milita~ business originates in commercial ah~lanes missionized for military usage-- but not aH of it. Since the 1950s, Beech has been building missile targets for military Waining operations. The subcontracts business muuds out Beech's structure today. This also has been a Beech activity since World Wnr II. Today Beech builds Boeing 737 control surfaces under subcontract, and composite landing gear doors and winglets fa' the C-17 tmnslx~t under subcontract to McDonnell Douglas. '. U.$.AIR FORCE Providing more than ~ demidea of ®x~ -_:lanes with military training airr, raft, Beech la well-poaltloned to offer a total training ayatem for the JPATS role. Jayhawk training underway from page I mentation System (EFIS) is capable of progressive disphys to allow students to increase proficiency at a mensured pace. Tbe Air Force has placed orders for a total of 113/ayhawks to do_re. It is projected that as many as 180 Jayhawks will be ~ ~ Air Force mission. 'The Jayhawks will replace T-38 amgoq trainers cun~tly pilots,' said James M. Gregory, director - Corporate Affairs at Beech Aircraft. 'This will ultimalely extend the service life of the T-38, which is also used to train future fighter and bomber pilots." Both Jayhawk and Beechjet are manufactured entirely in the United States, at Beech facilities in Wichita nmi _Beec__hjet production was transfen~ to the United States in the late 19~s, bringing with it hundreds of jobs for activity in the company's jet factories has more than doubled to meet Sayhawk and Beechjet demand, aiditional tooling has been fabricated to support increased deliveries. lan. 7, 1993 3 Beech leads s[mng training team team to propose the most cost effective, low-risk training system solution for U.S. Air Force and Navy primary pilot Since Beech and British Aerospace (BAe) signed a teaming agreement in Iune, both companies have been working closely toge~et on the ~PATS C, mund Based Training System (GBTS). Beech chose BAe to develop the 6BTS because of ~e company's exten- sive experience in the design and development of aviation training systems. In addition to BAe's own civilian prima~ flight training colleges, the company is prime contractor for the Royal Saudi Air Force (RSAF) primary pilot training sys~m. This includes the design, development, implementation and support of a total PC-9 training system and is similar in concept to the require- ments of the U.S. Air Force and Navy. BAe is totally familiar with the needs of the primary student, having produced and currently operating a PC-9 GBTS to The requirements of the GBTS for the U.S. Air Force and Navy ate in early stages of definition. Full development of GBTS components will begin after the conlract is awarded. However, to ensure that the PC-9 lVncll GBTS is tailored to the current lv. quirements and closely integrated with the aircraft, a combined Beech/BAe team has been established at Beech's Wichita facility, including permanent BAe program and engineering representatives. The fundamental message promoted by the Beech/BAe team is one of a total training solution. To this end, the GBTS will be based on a suite of training devices and complementary courseware to enable the most cest effective training of prinmry students. Thc Instructional Systems Development Process will be used to determine learning objeclives by device, and will provide an ongoing feedback loop. The backbone of the training will be hands-on flying in fl~e supplemented by ground based training and integrated throughout the training All training devices will support courseware developed in conjunction with Air Force and Navy subject matter experts. This team approach will produce knowledgeable, capable students, who may progress with confidence to the next stage of pilot Iraining. It is clear that the Beech team has the tools, the most relevant expedence, and the ability to produce the best total training solution for JPATS. JPATS GROUND BASED TRAINING SYSTEM lComputer Based nstruction ~oursew imulatom~ Training-~ Management · BEECH SystemJ BAe BASI lCaleCtronic~~ ssr°°~l~ ontractor-'~ ogistics~ Part Task~~ Tmine~ 4 TI~B~ TRAINERS AND SIMULATORS Beech Building Two PC-9 Mk. 2 Prototypes for JPATS FlYoff EDWARD H. PHILLIPS/WICHITA, KAN. Beech Aircraft Corp. officials had planned this summer to fly a Pilatus PC-9 modified to meet Joint Primary Air- craft Training System requirements, and have scheduled the first flight of a pro- duction prototype PC-9 Mk. 2 aircraft in 1993. Beech selected the Swiss-built military trainer as its JPATS contender primarily because "the aircraft was well suited to Beech's methods of manufacturing and engineering, had low fife-cycle costs and the performance to meet joint service re- quirements,'' David H. R.iemer, director of the JPATS program at Beech, said. The two companies signed an agreement to develop the aircraft in August, 1990. Riemer said Beech has full responsibility for design, engineering and flight testing of the two-seat trainer. About 80 person- nel are assigned to the project, including two test pilots. A standard PC-9 trainer is being used by Beech to develop the JPATS-config- ured PC-9 Mk. 2 version. The aircraft's Pratt & Whitney Canada PT6A-62 turbo- prop engine has been replaced with a PT6A-68 version fiat-rated to 1,270 shp. The aircraft was scheduled to partici- pate in initial evaluations at Wright-Pat- terson AFB this summer, which have now been cancelled, Riemer said. The fi- nal operation and evaluation phase of the competition is planned for September and October, 1993. RJemer said the -68 powerplant was se- leered because it would meet projected life-cycle costs and provide the power nec- essary to meet the Mk. 2's performance criteria. The time between overhaul inter- val for the -68, however, has not been decided, he said. The turboprop-powered Embraer Tu- cano H--another potential JPATS con- tender and a competitor to the PC-9 Mk. 2--also is powered by a -68 engine and uses a Full Authority Digital Engine Con- trol (FADEC) to eliminate the engine's characteristic and undesirable surge when takeoff or maximum power is applied. Beech officials said the -68's surge will be eliminated, but would not verify if a FADEC will be installed to resolve the problem. In addition to the Mk. 2's engine up- grade, Beech engineers are redesigning the aircraft's canopy, aft fuselage and empen- nage in an effort to improve bird strike protection, maintenance access and flying qualities respectively, according to Riemer. The revised windshield structure is fabri- cated from a heavier, thicker stretched acrylic and will withstand the impact of a four-lb, bird at 270 kt. "without penetra- tion of .the canopy," he said. Other significant changes being incor- porated into the JPATS aircraft include single-point refueling, cockpit pressuriza- tion to a maximum differential of 3.5 psid., installation of two lightweight, Martin-Baker Mk. 16 ejection seats fea- turing zero-zero capability, and modifi- cation of the rear seat to improve instructor visibility. The cockpit meets JPATS criteria for accommodating both male and female pi- lots. "We drew on our experience with the T-IA Jayhawk program to help us with that requirement," Riemer said. In 1990 Beech was selected to provide 180 Jayhawks for the Tanker Transport Training System already in operation with the U. S. Air Force. Deliveries be- gan in January, 1992, and at the end of June Beech had delivered 17 T-IA air- craft. Except for structural and configuration Be~ala/r]gatllS PC-g Mk. 2 JPATS candidate wifl ~,co, perate numerous first flight efa Mk. 2 preducflon protetype is scheduled for oarly 1993, airframe and cockpit modiflcatlens to meet joint service requirements, fellewed by first fliglit ef the second p~etetype in the spring. U.$.AIR FORCE ~04~ '1 48 AVIATION WEEK & SPACE TECHNOLOGY/August 3, 1992 ' ~RAII~ERS AND SIMULATORS changes to the empennage, the Mk. 2 trainer's overall dimensions are similar to those of the standard PC-9. Beech began building two production prototype air- craft in 1991, and the fuselage of the first prototype is nearly complete. Beech has received a new wing from Pilatus for installation on the first Mk. 2. Wingmate was completed in mid-July. Fitting the wing to the fuselage was ac- complished "without any problems--ev- erything fit," according to Riemer. Although essentially the same as the PC- 9's standard wing, the new wing's fuel capacity has been increased to 185 U.S. gal. /PATS engineers are using CATIA and CAD-CAM methods to transform the PC-9 into the Mk. 2 version. Because no major alterations to the baseline air- frame are anticipated, "we do not plan to conduct any wind tunnel work" on the Mk. 2 version, Riemer said. The structur- al changes, new engine/propeller installa- tion and other modifications will increase weight by about 700 lb., Riemer said. An avionics vendor is scheduled to be selected in early 1993. To help evaluate avionic installations proposed for the air- craft, one Mk. 2 prototype will feature a Bendix-King suite for both the student and instructor cockpits. The other will have a Collins-designed system. Both ven- dors will include two-tube electronic flight instrument systems as specified by /PATS. In addition, competition has begun to select U.S.-based vendors for airframe components such as hydraulic pumps, electric motors, valves and other parts for various airframe systems. FIRST PROTOTYPE TO FLY IN 1993 Riemer expects to fly the first prototype Mk. 2 in winter, 1993, and the second aircraft should make its first flight that spring. Since January of this year, Beech /PATS demonstration pilots Erik Ander- son and Robert Newsome have conducted more than 500 flights to acquaint U.S. Navy, U. S. Air Force and civilian pilots with the PC-9's capabilities. "The U. S. Navy and Air Force want an error-tolerant and safe aircraft as well as an excellent trainer," Anderson said. He served more than seven years as an Air Force instructor pilot flying Cessna T-37B aircraft before joining the/PATS program at Beech in January. This AVIATION WEEK & SPACE TECH- NOLOGY pilot flew the PC-9 demonstrator twice, with Anderson occupying the in- Cockpit section of first production prototype PC-9 Mk. 2 is being built at Beech using production tooting. Access panel for single-peint refueling is lecated ferward of wing leading edge cutect. structor seat for both flights. During more than two hours of flying, I per- formed basic acrobatic maneuvers includ- ing loops, spins, aileron and barrel rolls as well as other military maneuvers that in- duced load factors of up to 6g on the aircraft and pilots. I also flew the aircraft in its slow flight and stall regime and in the traffic pattern to evaluate its low- speed qualities. The aircraft's cockpit is well laid out, and I especially liked the single power lever and flap controls that were conve- uiently located adjacent to each other on the left cockpit sidewall. Both the throttle and control stick are configured for hands on throttle and stick operation. The large flight and navigation electronic flight in- strument system and engine instrument displays were easy to see and interpret. Ready for departure, I advanced the thrust lever to takeoff power and the PC-9 accelerated rapidly. A large amount of right rudder was needed to track the cen- terline, but it was relatively easy to keep the aircraft headed straight down the run- way. I rotated at 70 kC and climbed the air- craft at 140 KIAS to an altitude of 11,500 ft, Thc PC-9 handled extremely well dur- ing the climb phase, and visibility from the cockpit was exceptionally good--almost like fitting outside the aircraft. I quickly realized that although powered by a turbo- prop engine, the PC-9 flies like a jet. After leveling off, I made some steep bank tums and found the controls well harmonized with light stick forces. The aircraft responded immediately to my in- puts, although after each power change I had to adjust rudder trim using the rock- er switch on the throttle. I finally learned that small changes in power settings had to be made slowly to avoid overshooting desired torque, but every power change required use of rudder trim to keep the ball centered. In keeping with its trainer mission, I performed some typical military training maneuvers to sample the aircraft's behav- ior-including its temperament when the same aerohatic maneuvers were intention- ally botched. During a fully-developed left spin, for example, after three turns I intentionally released the stick and rudder pedals. Ini- tially, the rotation rate increased and the nose-down pitch attitude oscillated. Af- ter two more tums, however, the air- craft's nose dropped and the rotation slowed dramatically as the PC-9 flew it- self out of the spin with no assistance from me. Loops were simple to execute. Starting at an entry airspeed of 180 kt. from level flight, I used a smooth, constant 4g pull- AVIATION WEEK & SPACE TECHNOLOGY/August 3, 1992 49 TRAINERS AND SIMULATORS up. The large canopy made locating the horizon at the top of the maneuver an easy task. Stick forces remained comfort- able during the loop and were not exces- sive during the recovery. Next, Anderson applied maximum power and climbed the aircraft vertically until airspeed dissipated. As the aircraft stopped climbing, it began a slow torque roll to the left. Anderson released the con- trols. The PC-9 slowly entered a whip stall, pitched over on its back and quickly built up airspeed as Anderson recovered to level flight. The aircraft's slow flight and stall char- acteristics are excellent for an entry-level, high-performance military trainer. Dur- ing stalls with flaps and landing gear re- tracted and extended at pitch attitudes as high as 30 deg., I held the stick full aft and was able to pick up a low wing with rudder alone as the aircraft continued to buffet and mush downward. There was no tendency to stall, roll off and enter the incipent spin phase. When I released back pressure on the stick, the PC-9 recovered immediately without adding power. Throughout the aerobatic and stall ma- neuvers, I found the aircraft to be predict- able and exceptionally benign--important traits that help build confidence in stu- dent pilots. Although I had not flown a turboprop- powered military trainer before, after two hours in the aircraft I felt comfortable flying the PC-9. The aircraft retains its good traits in the traffic pattern as well. There is little pitch change when landing gear and flaps are extended. Good visibili- ty through the canopy helps both crew- members spot traffic, and the aircraft makes no special demands of the pilot when landing. On final approach, I trimmed the air- craft for 90 kt. and reduced power slowly over the runway threshold. I had no prob- lem timing when to initiate the flare, and the PC-9 landed smoothly on its main gear. After each touch-and-go landing, it was not necessary to retract the flaps--- that was done during climbout to pattern altitude. In addition to being prime contractor for the Beech/Pilatus team, Beech Aircraft Corp. in June selected British Aerospace Defense, Ltd., as the third team member to develop the PC-9 Mk. 2 ground-based training systems (GBTS) (^W&ST June 22, p. 32). Riemer said British Aerospace was selected because "we liked their primary training capabilities and the fact that they were a Iow-risk partner." The company has developed and al- ready administers a PC-9 training sys- tem for the Royal Saudi Air Force's fleet of PC-9s. Most of the PC-9 Mk. 2 training system will be developed in the U.S. with about 30% accomplished in the United Kingdom, D. M. Gray, pro- ject manager, JPATS ground based training for British Aerospace, said. Riemer said Beech and British Aero- space will use flight test data from the Mk. 2 program in developing the comput- er-based training system. "We intend to select computer hard- ware as close to bid date as possible" to help ensure technical superiority, Joseph Grubiak, program manager for the GBTS, said. He emphasized that Beech and British Aerospace "are highly sensi- tive to the whole issue" of fielding a JPATS training system that is not only capable of accommodating changes, but capable of quickly incorporating such changes throughout the system. It remains uncertain if the Air Force and Navy will require a dome-type visual simulator capability to teach essential ba- sic maneuvers such as formation flying. Instead, Grubiak envisions the services calling for a three-tier system that consists of a cockpit procedures trainer, an instru- ment flight training device without visual capability, and a full-up, operational mo- tion base simulator device with complete visual capabilities. He expects the Air Force and Navy to outline specifically the type and sophisti- cation of simulation devices they want when the draft request for proposals is issued in October. ~ British Aerospace developed the PC-9 ground-based training system The JPATS program will use similar equipment to train air force and navy currently in use by the Reyal Saudi Air Force, including flight simulators, student pilets. 50 AVIATION WEEK & SPACE TECHNOLOGY/AugusT 3, 1992 TRAINERS AND SIMULATORS Competitors Set Strategies To Win JPATS Competition DAVID A. FULGHUM/WASHINGTON The Pentagon is still two or three months away from defining a ground- based system to guide fledgling pilots through Air Force and Navy primary flight training, but aerospace contractors already are exploring strategies to help capture the prized contract. The ground-based training portion of the Joint Primary Aircraft Training Sys- tem (JPATS) may only amount to 10- 15% of the program's total acquisition cost (industry officials estimated 20- 25%). However, ground-based elements will assert a far larger influence on the program's selection process and final configuration. Defense officials are de- manding a seamless match be- tween the ground-based training system (GBTS) and the actual aircraft. The quality and timeliness of data trans- ferred from the builders of the aircraft to the simulator man- ufacturer will be the critical el- ements, Air Force officials predicted. "If the information is passed on time and complete, they will avoid reworks [of the simulator design] and save money," a senior Air Force of- ficial said. "If not, simulator [delivery] will be late and cost more. That's where we think there could be a hiccup in the program." Moreover, defense officials would like contractors to de* velop a training management system (TMS) that not only would link all elements of the JPATS ground based sys- tem, but that also could be adapted as a common management tool for Air Force and Navy training aircraft programs. A number of aerospace ~rime contrac- tors have announced teaming arrange* ments with companies specializing in simulators and other ground training sys- teras, including LTV/Loral, Hughes and Beeehcraft/British Aero- space and Rockwell/CAE-Link. Arrange* ments made by other contenders are expected to be announced soon. The Pentagon is unhappy with the new ground-based training systems it has bought for the Air Force's multi-engine T-I and Navy's T-45 advanced trainer. The introduction of changes into these systems is difficult to manage in a rapid, organized manner because they are not electronically integrated. Changes incorporated in any one part of the training curricnlum---courseware, classroom lectures, simulators or air- craft--are not automatically reflected in the materials of other training sections. These holes in the training management system (TMS) have producaxl what is called "negative learning," in which les- sons in one part of the curriculum conflict with those of another. Instructors spend expensive training time correcting these system- induced inconsistencies. The problem of updating simulators is not a new one. It is endemic in operation- al units, and even part of the Air Force's premier stealth fighter wing is awaiting updates that will match the simulators to their aircraft. Nevertheless, it is a problem the military hopes to solve. "We have a clearer vision of where we want to go than when TMSs for the T-I 36 AVIATION WEEK & SPACE TECHNOLOGY/August 3, 1992 and T-45 were designed," a senior Air Force official said. A simulator is needed into which aircraft modifications can be inserted on an "interactive, real time ba- sis.'' And once JPATS is operating, the Air Force and Navy would like to adopt the training management system through- out their aircraft training establishment. For the present, "we don't want to dic- tate the solution," an Air Force official said. "[We will] let industry tell us." However, aerospace officials doubt that the Air Force and Navy can afford a completely new ground-based TMS for the Joint Primary Aircraft Training System competition. Therefore, industry's only cost efficient option may be to take the best components from ex- isting ground training systems and add to them. '~rhere are lots of good pieces, but integration is diffi- cult,'' an aerospace industry official said. But in addition to the formi- dable difficuities of tying di- verse · systems into a manageable whole, Air Force officials anticipate problems with the builders of the train- ing management system in use. These contractors must be convinced to turn over propri- etary information to other contractors in order to make amalgamation--and thus the hoped for seamless training system--possible. As a first step in defining CSBTS, the operational requirements doc- ument (ORD) has just been released by the JPATS program office at Wright-Pat- terson AFB, Ohio. This first cut at the requirement calls for the Air Force and Navy to split use of 56 operational flight trainexs, 50 instrument flight trainers, 12 cockpit procedural trainers, 7 ejection seat ~ainers and 7 egress trainers, in ad- dition to classroom computer equipment. Firmer numbers will be published in However, if a manufacturer can offer a system that allows fewer simulators to do the necessary amount 'of work, the added tion process, Air Force officials said. i -,'TRAINERS AND SIMULATORS Beyond the ground based portion of the JPATS program, operational demon- strations have begun at Wright-Patterson of early versions of many candidate air- craft. Competitors are about at the one- year mark from the date they must fly an aircraft that meets ali the Pentagon's re- So far, Orumma~Augusta has shown surprisingly few changes in its S-211 in what competitors believe is a bid to cap- ture the lowest acquisition price. Others like Lockheed and LTV will concentrate on higher performance and greater capa- bilities to outweigh higher initial acquisi- tion costs. Lockheed, for example, will try to duce life cycle costs by incorporating technologies developed for other pro- grams such as Pilots Associate, a comput- erized surrogate crewman, and the F-117 simulator. Moreover, Navy indications that the service wants SPATS to pick up the training load now carried by T-2 air~ cra~ has led Lockheed to advertise the high performance of its MB-339. However, Air Force officials st~d_~astly said they do not want to expand the JPATS training syllabus to include any- thing taught in the advanced T-1 or T-38 trainers. LTV officials claimed flying the Pampa 2000 can greatly improve what a pilot learns in the last 10 hours of primary training by providing a fast aircraft that can perform more advanced aerobatics. This capability would better represent the next, more advanced, level of flying, thus easing the transition to higher perfor- mance aircraft. Other aircraft scheduled to fly at Wright-Patterson include the Northrop/Embraer Tucano H, Spanish- built CASA 101, Czechoslovakian-built L-39, Beechcraft/Pilatus PC-9 and Rock- well/MBB Fan Ranger. Despite publication of the ORD, cer- tain key program elements remain vague. How many aircraft and simulators will the Air Force and Navy ultimately be able to afford? And how many pilots will the services need to produce in coming years? Production costs will be largely ~ ,in~t.m°ney in techn°~gies iii.: i'!:i~he milita~.rnay ulti~ely :ii".':' .'i' de¢ide :.are .unneceSsary~fn'lls .'. based on those numbers, industry officials said. The current unofficial Pentagon esti- mate of the number of SPATS aircraft needed is 765. This is roughly 50 fewer aircraft than in the official trainer road- map. With the base force and, thus pilot production, still a subject of congressional debate, service officials predict the total buy will drop even further. Aerospace companies are attempting the calculations on their own, "an expen- Simulat~ teel~elegies develeped fer black pre- grams like the SR-71, F-il7 and B-2 (pictured llere) are being reuted te the Jeint Primary Aircraft Training System pregram. sive and time consuming effort" deemed necessary because cost will be critical in the JPATS competition, an offieiai said. There also is the problem of obtaining corporate funds for technological invest- ment with no guaranteed return. SPATS program managers around the industry are under pressure from senior financial officials to cut costs. Thus, there is little to invest in areas not sure to be part of ~ Force requirements. This has lef~ SPATS officials in a quandary. "We're having not to go too far for- ward on any one approach," a senior aerospace official said. Aerospace contractors and defense offi- cials are at a standoff. Contractors do not want to invest money in technologies the military may ultimately decide are unnec- essary frills or just too expensive to in- elude, Conversely, the Ah' Force does not want to overspecify requirements for fear it may suppress creative solutions to ob- taining a high quality, but low cost, pri- mary training aircraft. Another source of confusion is the ba- sic requirement for maximum use of off- the-shelf equipment. Contractors claim that very little of this equipment can me6t the demands of military training aircraft without substantial modifica- tions--including a requirement for an on-board oxygen generation system or at least a system that does not involve liq- uid oxygen. "It's a total disconnect," an aerospace official said. "Until (Pentagon require- ments) get clearer, no one can say what the trainer or the cockpit will look like." [] AVIATION WEEK & SPACE TECHNOLOGY/August 3, 1992 I