UNITED KINGDOM AND NATO
27 Oct 22. UK Spearhead plans accelerated capability insertion for Sonar 2087. The UK Ministry of Defence (MoD) and the Royal Navy (RN) have unveiled plans to fast-track a series of enhancements into the Sonar 2087 low-frequency active/passive variable depth sonar fitted to the RN’s eight anti-submarine warfare (ASW)-optimised Type 23 frigates.
A Request for Information (RFI) released on 24 October has outlined a capability insertion project (CIP), which, as part of the RN’s wider ASW Spearhead programme, will seek to deliver performance and operability improvements to maintain Sonar 2087’s performance against a qualitatively improving ASW threat. The Spearhead innovation initiative is intended to transition new functionalities to the front line much faster than traditional processes allow. (Source: Janes)
28 Oct 22. UK Armed Forces to benefit from £45m contract for life-saving explosive devices protection system.
Soldiers, vehicles and UK military bases to receive innovative digital protection against Improvised Explosive Devices (IEDs) through a £45m contract.
- UK Armed Forces to receive crucial protection system against improvised explosive devices
- £45m contract supports British Defence industry
- Project supports cutting edge UK skills and capability development, laying the foundation for long term growth
Soldiers, vehicles and UK military bases around the world will receive innovative digital protection against remote and radio controlled Improvised Explosive Devices (IEDs) through a £45m contract with British industry.
Under the contract awarded to Team Protect, the work – called Project CRENIC – sees UK military experts collaborate with small and medium businesses during the next five years.
Team Protect compromises of PA Consulting, Leonardo, Leidos Innovations UK, and Marshall Land Systems. This contract will sustain more than 50 jobs around the country, including in the North-West, East and South-West of England. The project aims to support and create further jobs through contracts with small and medium enterprises.
The project will develop equipment designed to be carried by soldiers, fitted to vehicles and protect military bases by detecting and disrupting explosive devices using advanced techniques across the electromagnetic spectrum.
Defence Procurement Minister Alex Chalk said: “Our Armed Forces dedicate their lives to protecting and securing our nation. As the technology used by our adversaries to threaten our people and operations evolves, we are innovating to stay ahead of the challenge.
This project brings together pioneering UK technology and industry to create a world leading protection system for our Armed Forces.”
The new system will be supported by the Defence Cyber and Electromagnetic Activities (CEMA) Architecture, which uses a common set of hardware and software open technology standards, equivalent to desktop computers and cellular phone software, to allow for wider industry participation and support reconfiguration for other military uses. This will allow the Armed Forces to modify the solutions in the future and allow for greater collaboration with allies.
Major General Robin Anderton-Brown, Director Capability Strategic Command, said: “Incorporating cutting-edge technology and adopting an agile acquisition approach, CRENIC will deliver a world-leading capability to protect our forces deployed on global operations.
Using the Defence CEMA Architecture, Project CRENIC will enable information to be shared across multiple domains, making it the first capability to directly support Multi-Domain Integration. This means information only needs to be collected once and can then be used many times. The project is expected to support electronic warfare in the future, including countering remotely piloted air systems.”
On behalf of Team Protect, Peter Lovell, Global Head of Defence and Security at PA Consulting said: “We are delighted that Team Protect has been selected to be the System Integrator (SI) for this project. The work marks a strong progression of the collaborative approach between industry and the Ministry of Defence to deliver innovative solutions to keep UK forces safe. The team has deep and extensive experience across vital capabilities, including complex programme delivery, engineering, agile software development, and digital transformation. We will deliver this project and keep UK forces safer by leveraging our relative strengths – using ingenuity to help deliver a positive human future.
A cutting-edge integration laboratory facility will also be established to support the development of the system. The laboratory will promote innovation and experimentation as the new capability evolves against emerging threats.”
First deliveries of the new equipment for vehicle and soldier carried systems for use on operations are due to take place in 2026. Equipment will be incrementally deployed and will evolve to meet the needs of the British Army, Royal Marines and Royal Air Force land forces long into the future. (Source: https://www.gov.uk/)
24 Oct 22. Government secures £89m deal to export UK aerospace expertise to Brazil. Government support provides a boost to the British aerospace industry in UKEF’s first deal with leading Brazilian aerospace manufacturer Embraer, the third largest commercial jet manufacturer in the world
- The deal will help Embraer access critical parts, components and technology from UK suppliers that will enhance its commercial and defence aircraft programmes.
- This is a part of broader initiatives by both nations to strengthen trade ties and will promote future collaboration between UK suppliers and Brazilian manufacturers in aerospace.
- UKEF provided support by acting as guarantor to the lender, JP Morgan Chase Bank, N.A., London Branch (“JPMorgan”), ensuring Embraer benefits from flexible repayment terms.
UK Export Finance, the UK’s export credit agency, has supported an £89m loan to Embraer.
This was made possible through partnership with JP Morgan, who acted as the lending bank and arranger for this deal.
Securing UK exports to this major manufacturer means UK goods and services will be embedded in aircraft that fly 145m passengers globally every year.
UKEF can help overseas buyers access financial support to make their projects happen, provided they commit to sourcing goods and services from the UK. This helps open new doors for world-class British suppliers to trade overseas. Through UKEF, the UK can also help international buyers access finance and insurance when it is not available from the private sector.
UKEF has over £3bn available to help Brazilian buyers access the finance they need to trade with the UK, with the ability to provide guarantees in Brazilian Reals so that Brazilian businesses can access finance in their own currency.
Samir Parkash, interim CEO of UKEF said: “Now, with this UKEF first deal with Embraer, we can export world renowned British expertise and technology in the aviation and aerospace industry to Brazil – an economy that was rapid in recovering pre-pandemic levels of economic activity, that keeps on growing strong in 2022 and is an important trading partner to the UK. In fact, in the four quarters up to Q1 2022 trade in goods and services between the two nations increased by 18% year-over-year reaching £6.5bn.
Antonio Carlos Garcia, Chief Financial Officer of Embraer, said:
This first Embraer deal with UKEF shows the success of our strategy to diversify our suppliers and financial partners. We are always looking for actions that improve the profile of our debt, and this operation is another step in that direction.
John Meakin, Global Head of Export & Agency Finance at JP Morgan, said:” We are delighted to support a strategically important global client in the aviation sector to meet their objectives and partner with UKEF in delivering commercially relevant financing. The financing structure is flexible and innovative, and it would not have been possible without the commitment of all parties involved in rolling out this milestone program.”
26 Oct 22. Elbit America Evolves Into Prime Contractor to US Army.
- A trusted, agile prime contractor to the U.S. Army, providing innovative platforms, systems & solutions at scale
Elbit Systems of America has become a Tier 1 supplier to the United States Army in recent years, earning Prime Contractor status by supplying advanced night vision googles and mobile mortar systems to Soldiers. Elbit America is also poised to provide unmanned turrets for the U.S. Army’s Optionally Manned Fighting Vehicle (OMFV) program in partnership with BAE Systems, and the company is preparing to build mobile howitzers at its new facility in South Carolina once the service selects a solution.
“During the past three years, we have invested nearly $1 bn to grow our industrial capacity – building new labs and production facilities, hiring engineers, funding company research and development – focused toward a number of U.S. Army needs and priorities,” said Raanan Horowitz, President & CEO of Elbit Systems of America. “This investment will result in our ability to significantly contribute to the effort of building the Army of 2030, providing capabilities that enhance Soldier mobility, survivability and lethality.”
Elbit America’s contributions to Army modernization include:
- Command Post Integrated Infrastructure (CPI2) – an armored, vehicle-mounted command post that replaces tent-based headquarters activities with a more mobile and therefore survivable solution amid modern, contested battlespaces;
- Enhanced Night Vision Goggle – Binocular (ENVG-B) systems – advanced, high resolution night vision devices that provide a wider field of view, clearer sight using white rather than green phosphor, overlaid with augmented reality information to provide Soldiers with greater situational awareness;
- Mobile Mortar Systems – 120mm mortar weapon systems carried in the cargo bed of various combat vehicles that can be more easily emplaced and stowed for greater lethality and “shoot and scoot” survivability;
- The UT50 unmanned 50mm turret – the primary weapon of the OMFV, the turret includes active protective systems to counter incoming threats and a 360-degree remote vision system that provides the crew with greater situational awareness while still enjoying the protection of the vehicle’s combat armor;
- The ATMOS Iron Sabre – a 155mm truck-mounted mobile howitzer, Elbit America has established a new, modern production facility in North Charleston, South Carolina, to build a similar system called ROEM for the Israeli Army. Once operational early next year, this hot production line will put Elbit America in position to build mobile howitzers for the U.S. Army as well;
- The MATR-X radar – a new, multimode/multi-mission advanced electronically scanned array (AESA) tactical radar – X-band (MATR-X) is a marvel of engineering that can simultaneously scan, identify, track and target thousands of low-altitude airborne targets including small drones, low flying manned aircraft, cruise missiles and other munitions. MATR-X will be integral to the development of next-generation air defenses and countermeasures to a range of emerging, more lethal threats to Soldiers, combat vehicles and other platforms;
- X-Sight Helmet Mounted Display (HMD) – a new HMD for Army aviators that is a significant improvement over similar systems flying today aboard Apache, Blackhawk and Chinook helicopters. X-Sight uses intuitive augmented reality and a wider field of view to give pilots greater situational awareness to improve lethality and survivability. X-Sight has been extensively evaluated by the Army and is likely to be adopted for to support future variants of the Future Vertical Lift (FVL) family of next-generation rotary wing combat aircraft.
All of these solutions were on display at the recent Association of the U.S. Army Annual Meeting & Exhibition in Washington, DC, which was attended by more than 30,000 people and with about 700 other companies exhibiting. (Source: ASD Network)
21 Oct 22. Space Force readies narrowband satellite communications solicitation. The U.S. Space Force expects to release a solicitation early next year for two Mobile User Objective System satellites, a multibn effort meant to ensure military users have access to secure communications. The service operates four active MUOS spacecraft and one on-orbit spare, all built by Lockheed Martin through a program that originated with the Navy, but transferred to the Space Force in March. The narrowband communication satellites operate in the 300MHz to 3GHz frequency range, making them less vulnerable to severe weather conditions and ideal for secure information transfer.
Barbara Baker, deputy program executive officer for Space Systems Command’s Military Satellite Communications and Positioning, Navigation and Timing Directorate, confirmed this week to C4ISRNET the service plans to request bids from companies for early risk-reduction and design work in early 2023.
The Space Force revealed in its fiscal 2023 budget request it plans to spend $3.7 bn to develop two more satellites that will launch by the end of the decade. That includes $165 m in fiscal 2023 and $1.4 bn over the next five years.
The acquisition is meant to extend the life of the constellation and is an outgrowth of a series of studies initiated by the Navy and carried forward by the Space Force. Lockheed, Northrop Grumman and Boeing —three of the top four military contractors globally, according to a 2022 Defense News analysis — all participated in those studies. The Space Force may choose more than one company for the first phase, which would be followed by a competition between those firms.
Baker said in an Oct. 14 email the service hasn’t set a timeline for a contract award. She said the satellites will have common user interfaces with the other systems on orbit and may carry new capabilities, but did not provide details.
“The satellites . . . will meet or exceed the current system performance requirements and have compatible interfaces to ensure seamless integration with the MUOS ground systems and continuity of operations,” she said.
Today’s MUOS satellites, which replaced the Ultra High Frequency Follow-on system, carry two payloads — one to maintain the legacy UHF network and a second that provides a new Wideband Code Division Multiple Access capability. The system is designed to provide 10 times the capacity of its predecessor.
Justin Keller, director of advanced programs and military space at Lockheed, told C4ISRNET Oct. 9 the company attended an industry day in September with the Space Force and other prospective vendors. The message from the service, he said, is that they want a low-risk solution that prioritizes schedule.
“Their No. 1 focus is schedule and low risk, and we’re 100% behind that,” he said. “I think the government, the Space Force, has laid out a really good plan to get us there.”
Along with schedule and risk management, the Space Force is prioritizing resilience as it makes near-term upgrades to systems like MUOS and as it sets plans for future versions of these constellations. The service is slated to begin analysis next year to consider its long-term narrowband communication needs.
Keller noted that for satellites like these that weren’t designed to be resistant to cyber threats and enemy jamming, balancing these demands can be a challenge. The Space Force hasn’t revealed what limited resilience measures it may want for the sixth and seventh MUOS spacecraft because those capabilities are often classified.
“They’re hoping to address those [threats] that will not interfere with their schedule,” he said. “We’ve done a lot of work on that.”
As the Space Force moves forward with plans to buy more MUOS satellites, lawmakers have raised concerns about the performance of the current capability. The program experienced significant fielding delays, particularly with the terminals and equipment that allow users to connect to the system. A 2021 Government Accountability Office report found personnel on the ground were not able to take full advantage of the satellite’s more advanced features.
In the Senate’s version of the fiscal 2023 defense policy bill, lawmakers referenced GAO’s work and called for a demonstration of a “narrowband gapfiller” capability by January 2025. The Senate Armed Services Committee also wants a report on the status of the MUOS follow-on work.
Keller noted that while the program has experienced setbacks, feedback from users has improved as more terminals are fielded.
“Now that they have the terminals, everything we’ve heard is universal praise on the particular quality of the service compared to what they had before,” he said. (Source: Defense News)
REST OF THE WORLD
27 Oct 22. Canadian Surface Combatant cost may rise 9% with delays, inflation. The Canadian government has again increased its cost estimate for its next-generation frigate program, with a report by the Office of the Parliamentary Budget Officer showing a 9% increase in procurement costs since last year’s approximation.
The Canadian Surface Combatant program is now expected to cost CA$84.5bn (U.S. $62.3bn) to design and buy the 15-ship class.
In total, the ship program is now projected to cost CA$306 bn for the entire life of the class, including development, acquisition, operation and disposal of the ships, spanning a period from 2015 through 2081.
This program has seen a string of cost increases throughout its lengthy planning and development process to date.
The original 2008 budget for the surface combatant procurement was set at CA$26.2bn. In 2017, that jumped to CA$62bn. The procurement cost ticked up to CA$69.8bn in 2019, after Canada selected Lockheed Martin’s design for the ship, and then to CA$77.3bn in 2021. It now sits at CA$84.5bn.
This week’s report shows an increase in expected production costs due to updated production timelines and higher inflation rates, according to the report.
Ship construction was pushed back by a year; the first ship will now enter production in the 2024-2025 time frame, and will get delivered to the Royal Canadian Navy in the 2031-2032 time frame. The final ship’s delivery has been pushed back to the 2048-2049 time frame.
“Construction and ship delivery schedule delays directly affect the construction cost element, and consequently extend other cost elements such as project management, engineering support, training and testing, infrastructure and facilities, ammunition, and spare parts,” according to the report.
Last year’s report warned of potential schedule delays, and the cost increases that would incur. The jump in the cost estimate in 2021 was attributed to an increase in the planned weight of the ship and did not yet take into account potential schedule slips.
The Canadian Surface Combatant is designed by Lockheed Martin as a subcontractor to prime Irving Shipbuilding. Lockheed recently said the ship’s preliminary design review will be completed by the end of this year.
Irving Shipbuilding spokeswoman Mary Keith told Defense News the company was “not asked to provide data or participate in the report’s preparation. We are currently reviewing the full report and will respond to any issues Canada has. Our focus is on the start of CSC production in 2024.” (Source: Defense News)
27 Oct 22. Embraer Signs MoUs for Cooperation with the Aerospace Industry in South Korea. Embraer announced today that it has signed several Memorandums of Understanding (MoUs) with the aerospace companies ASTG (Aerospace Technology of Global), EMK (EM Korea Co.) and Kencoa Aerospace, from South Korea with the objective of strengthening collaboration with Korean defense industry partners for the future supply of parts for the C-390 Millennium aircraft. The C-390 Millennium aircraft is competing in the Large Transport Aircraft (LTA) II Program being run by the Defense Acquisition Program Administration (DAPA).
The potential supply of South Korean manufactured parts will contribute to the offset requirements of the LTA II Program. The MoUs intend to create long-term business relationships between the parties which will endure for the LTA II Program and beyond. Local industry capabilities can also be part of future developments within Embraer’s existing platforms such as the C-390 Millennium as well as new aircraft, vehicles, and systems.
“Embraer is very confident on the mutual benefits to be gained from this collaboration, thus creating a sustainable and growing relationship between Embraer and the partners in South Korea”, said Jackson Schneider, President & CEO, Embraer Defense & Security. “By offering more than 50 years of experience in aviation, technology and innovation, Embraer is looking to establish meaningful partnerships in South Korea to create new businesses and solutions.”
The C-390 Millennium and its aerial refueling configuration, the KC-390, are the new generation of multi-mission military transport delivering unrivaled mobility and cargo capacity, rapid re-configuration, high availability, enhanced comfort, as well as optimal management of reduced operational costs throughout its lifecycle, all on a single platform.
Since the first delivery to the Brazilian Air Force (FAB), the KC-390 Millennium has proven its capability, reliability, and performance. FAB’s current fleet of KC-390 stands at five units. The fleet has already exceeded 7,000 flight hours in operation, with a 99% mission completion rate, demonstrating excellent availability and productivity in its category.
In June 2022, the Netherlands Ministry of Defense announced the selection of the C-390 Millennium to replace the current fleet of C-130 Hercules. The Portuguese Armed Forces and the Hungarian Defense Forces will begin operations with the KC-390 in 2023 and 2024, respectively. The three European countries’ fleets will be capable of performing aerial refueling and be fully NATO compatible.
A global aerospace company headquartered in Brazil, Embraer has businesses in Commercial and Executive aviation, Defense & Security and Agricultural Aviation. The company designs, develops, manufactures and markets aircraft and systems, providing after-sales service and support to customers.
Since its founding in 1969, Embraer has delivered more than 8,000 aircraft. On average, every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, carrying more than 145 m passengers a year.
Embraer is the main manufacturer of commercial jets with up to 150 seats and the main exporter of high value-added goods in Brazil. The company maintains industrial units, offices, service centers and parts distribution, among other activities, in the Americas, Africa, Asia and Europe.
24 Oct 22. Brazil further cuts KC-390 order. Brazil has again cut its buy of Embraer KC-390 Millennium tanker transport aircraft, reducing its order by a further three aircraft on 21 October.
Having recently reduced its KC-390 procurement from 28 to 22 aircraft, the Brazilian Air Force (Força Aérea Brasileira: FAB) will now receive just 19 under a deal announced by Embraer.
“The amendments to the contracts preserve the company’s cash flow, ensure the economic, and financial viability of the KC-390 Millennium project,” Embraer said in a statement. “Embraer reinforces its commitment to the KC-390/C-390 Millennium project … as well as its belief in the export potential of this product, which brings unique innovations in its category, and which has already been selected by three European nations,” it added.
With the FAB having introduced the KC-390 in 2019, the twin-jet type is fielded by 11 Wing located at Galeão in Rio de Janeiro, and 2 Wing at Anápolis. To date, four aircraft have been accepted into service.
24 Oct 22. Australian Army launches Quantum Next Generation Radar Challenge 2022. The Australian Army’s Quantum Next Generation (QNG) Radar Challenge is open for entries. Army is challenging Australian industry and academia to identify the most disruptive applications of quantum technology.
Team Nominations opened on 5 October and close on 2 November
The Challenge is open to teams of undergraduate and postgraduate students and early career researchers (within 6 years of higher degree award) associated with Australian institutions, and current Defence personnel or APS members.
Teams must consist of 2 – 4 players. Players must be current Defence personnel or APS members, undergraduate student, postgraduate student or early career researcher enrolled at an Australian institution (will be required to nominate with your institutions email address.
The first 50 teams will be selected to participate.
The Challenge is part of a push by the Army to build sovereign capability and leverage Australian research to gain and retain an early quantum advantage. The Army Quantum Technology Roadmap outlines Army’s aims.
The 2022 Challenge is “To find the optimal technique for employing quantum sensors in radar”. Army uses radar in variety of ways, including mobile radar systems to detect and target land and air threats, including enemy artillery fire, aircraft and tanks.
As military technology evolves and threats diversify, Army wants to know if quantum microwave sensors can enhance existing radar systems to detect smaller and weaker scattering targets that are moving faster and are further away, while emitting less power.
Quantum sensors operate completely differently to existing sensors. Finding the optimal employment technique is critical to accurately assess the advantages of quantum sensors.
QNG Challenge teams will explore the optimal sequence of radar pulses and quantum sensor configurations that estimates the range, velocity and cross-section of target objects with highest precision within a given amount of time and radar power.
Teams will require an intermediate knowledge of programming and data analysis. Possible solutions might involve the application of machine learning techniques.
Teams could be made of any of the following mix of skills and disciplines: Mathematics, Physics, Engineering, and Computer and Data Science.
The solutions pitched by QNG Challenge teams will help Army assess the advantages offered by quantum-enhanced radar and will frame future opportunities to develop the technology.
The QNG2022 winning team at Pitchfest will receive a special invitation and admission to Army Quantum Technology Challenge 2023 (QTC23 – subject to security and admission policies); and an invitation to submit a proposal to further develop and exhibit their solution at Army QTC23 up to $50,000.
- 5 October – 2 November – Team nominations open
- 4 November – Teams registered and provided with login details
- 7 November – 7 December – The 2022 Radar Challenge
- 8 December – Results published and shortlisted teams announced for PitchFest
- 9 – 16 December – PitchFest and winner announced
Click here to nominate
https://forms.office.com/pages/responsepage.aspx?id=GU5i_LU-u0uHril7jkukjXwnWWTBCM5Gk5WyPCsZZjVUM1I1NDcwUFFHVENGMlVXU05CSFlRN05GTS4u(Source: Rumour Control)
20 Oct 22. Airbus Becomes 1st Foreign OEM to Receive QMS Approval from Indian Regulator for the C295 India Aircraft Programme. The Airbus Defence and Space Quality Management System (QMS) for the C295 aircraft has received approval from the Directorate General of Aeronautical Quality Assurance (DGAQA), the Indian regulatory authority for aeronautical quality assurance. This is the first time a QMS of a foreign aircraft manufacturer has been approved by DGAQA.
The certificate of approval was handed over by Director General of DGAQA, Sanjay Chawla to Kajetan von Mentzingen, Head of Quality, Airbus Defence and Space at a ceremony held on the sidelines of DefExpo 2022, in Gandhinagar. This is a significant first step of a comprehensive quality assurance roadmap agreed between Airbus and DGAQA for the C295 ‘Make in India’ programme.
Speaking on the approval, Kajetan von Mentzingen said, “We have crossed a milestone for the C295 ‘Make in India’ programme. This certification demonstrates the trust and confidence that DGAQA places in Airbus quality standards. It marks the beginning of a robust and comprehensive roadmap that Airbus has put in place for the C295 ‘Make in India’ programme. It will be the foundation for successful aircraft manufacturing in India under the policy of Aatmanirbhar Bharat.”
India formalised the acquisition of 56 Airbus C295 aircraft to replace the Indian Air Force (IAF) legacy AVRO fleet, in September 2021. Under the contractual agreement, Airbus will deliver the first 16 aircraft in ‘fly-away’ condition from its final assembly line in Seville, Spain. The remaining 40 aircraft will be manufactured and assembled by Tata Advanced Systems Limited (TASL) in India as part of an industrial partnership between the two companies. This certification is part of this programme, which involves the full development of a complete industrial ecosystem: from the production of detailed parts to assembly, test and qualification, to delivery and maintenance of the complete lifecycle of the aircraft.
Since 1946, Industrial Electronic Engineers, IEE, has specialized in the design, test, support and fielding of display products for use in demanding military and aerospace applications throughout the world. IEE has developed an extensive product portfolio that today includes enhanced flat panel displays, smart displays and handheld devices.
From rapid prototyping of custom designs to full-scale production runs, IEE, produces displays with advanced features like low-latency video processing, high-bright and NVIS backlighting, and lightweight rugged enclosures. Their SWaP-C products employ the latest lightweight composite materials; low power, high performance integrated ARM processors; standard Ethernet and USB communication, in a low cost, highly producible design.
In-house California facilities include optical bonding, clean rooms for display assembly, a dark room for optical measurements and environmental chambers for pre-compliance and customer acceptance testing. On-site manufacturing includes PCB assembly and flow soldering. IEE has manufactured handheld, in-vehicle, airborne and naval LCD displays for all military branches as well as leading aerospace firms both domestically and internationally.
IEE is ISO 9001:2015 and AS9100D certified.
- Direct control of critical process steps that reduce cost, decrease production lead times and improves life-cycle management
- Unique advantage to serve to both smaller quantity, highly custom displays needs as well as high volume production outputs
- Expert in delivering the best value in form and fit replacement by modifying existing COTS products to meet legacy requirements
- Leading the next generation avionics efficiencies by leveraging open architectures and common software standards
- Field-proven, pre-engineered displays minimize lead-time and non-recurring engineering costs.