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Bullboard - Stock Discussion Forum FLYHT Aerospace Solutions Ltd V.FLY

Alternate Symbol(s):  FLYLF

FLYHT Aerospace Solutions Ltd. provides solutions for the aviation industry. The Company's aircraft certified hardware products include Automated Flight Information Reporting System (AFIRS), AFIRS Edge, Tropospheric Airborne Meteorological Data Reporting (TAMDAR) and FLYHT-WVSS-II. AFIRS is an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state... see more

TSXV:FLY - Post Discussion

FLYHT Aerospace Solutions Ltd > In store in ‘24 on the weather side of FLYHT’s business
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Post by CF105 on Feb 14, 2024 9:18am

In store in ‘24 on the weather side of FLYHT’s business

While FLYHT owns the WVSS-II technology going forward, there have been a number of units installed over the past 20 years under previous ownership that are collecting high quality weather data as you read this. Based on this page at the Collins site and mentions at the WMO site, it appears that Collins Aerospace presently holds the information service provider contract for maintaining these installs, collecting the data and delivering it to NOAA for dissemination.

https://www.collinsaerospace.com/what-we-do/industries/commercial-aviation/government/aircraft-based-observation-program

To get a sense of when this contract might be up for bid again, I looked for earlier ones. Information can be found in WMO ABO newsletters to support a pattern of roughly every three years with an award made by September in that year.

For example, in or for September of 2014, there was a three-year contract award. From an NWS (National Weather Service) slide show... “3-year NOAA contract awarded to Rockwell Collins in September 2014 for provision of new sources of meteorological observations from commercial aircraft.

https://www.weather.gov/media/grr/GLOM2015/Presentations/2_Brusky-Amdar3.pdf

I have been able to find numerous confirmations that Collins was the information service provider during the years 2017 through 2020. I suspect that COVID may have caused a one-year uncontested renewal with its greatly reduced ABOs. Air traffic was so reduced that FLYHT wasn’t even charging for data for part of this time. No one knew how long the pandemic would go on for so it would have been very difficult for NOAA to create an RFP with meaningful terms.

In 2021, a contract offering was forecast in the WMO Aircraft-based Observations Newsletter - Volume 21, April 2021: “The USA will soon seek to renew contracting arrangements with data service providers for continued procurement of AMDAR and WVSS from USA-based airlines...”

This was confirmed In the November 2021 newsletter: “The USA has renewed its contracting arrangements for continued procurement of AMDAR and WVSS from USA-based airlines.” Collins Aerospace again. (In the Nov. 2022 WMO newsletter, “...under an arrangement with information service provider, Collins Aerospace”.)

For future reference, all of the WMO ABO newsletters can be found and read here... https://community.wmo.int/en/activity-areas/aircraft-based-observations/newsletter.

Each contains pages full of details about the different weather data types and methods of data collection (including both TAMDAR-over-AFIRS and the WVSS-II), the number of soundings by type and location, the number of aircraft involved and where they fly, and the impact that collecting the data makes.

The 2021 contract, if for three years, would have begun in September 2021 and would be concluding in August of this year.

In a search for recent information on the WVSS-II sensor, I came across information about what appears to be the upcoming contract renewal opportunity at the U.S. government website that provides information on procurement contracts.

A recent “Sources Sought” notice and a draft "Statement of Work" updated January 25, 2024 can be found here.  https://sam.gov/opp/fd029d92edd04c1f9d151ed70dc3e371/view.  Notice ID ACQ-AONCA0110-24-0029. Scroll down when there to locate the PDF download links, to open and read.

The Sources Sought seems to describe what Collins Aerospace is presently doing so NOAA, the Acquisition Grants Office (AGO) and the Eastern Acquisition Division (EAD) can conduct “market research for the purpose of assessing the current and near future marketplace and potential vendors capable of providing (the same) observations of wind, temperature, and humidity Meteorological Data and Reporting System (MDCRS) and Water Vapor Sensor System (WVSS) data”.

Information provided in response to this Sources Sought will be used to assess tradeoffs and alternatives available for determining how to proceed in the acquisition process for the Meteorological Data and Reporting System (MDCRS) and Water Vapor Sensor System (WVSS) data. This Sources Sought Notice is a request for interested parties to describe their technical capabilities and demonstrated tools, processes, and service capabilities. A response to this Sources Sought Notice is necessary in order to assist NWS in determining the potential levels of interest, adequacy of competition, and market maturity and technical capabilities within the business community to provide the required capabilities.

The Government anticipates awarding a single award, Indefinite Delivery Indefinite Quantity (IDIQ) contract with a Not to Exceed Ceiling and Firm Fixed Price unit-level provisions based on a best value basis. The period of performance of this procurement will be from September 1, 2024 through August 31, 2029.” This aligns with the contract continuity starting point. The five-year length is new.

The related draft Statement of Work dated January 25, 2024 for NWS to collect ABOs (Aircraft Based Observations) includes this text as part of the scope and mission: “Observations of water vapor from some aircraft operated by US airlines are taken with an onboard sensor, the Water Vapor Sensing System II (WVSS-II) developed and installed by industry in partnership with the NWS in the early 2000s.  These sensors were installed on 107 Southwest Airlines Boeing 737 aircraft and 25 UPS aircraft.  These water vapor observations are communicated in real time from these 132 aircraft along with wind and temperature observations.  

The scope of this SOW is to continue procurement of wind and temperature observational data from both the MDCRS and ADS-C sources of aircraft-based observations, and humidity from those aircraft equipped with WVSS.

It is my opinion and belief that FLYHT is capable of competing with Collins for this business and that Collins and FLYHT may be the only two companies in a position to win this upcoming five-year contract.
 
“Sources Sought”: “The anticipated associated NAICS code is 518210 – Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services and the corresponding size standard is $40 Million.”

sba.gov (U.S. Small Business Administration): “The U.S. government is the world’s largest customer. It buys all types of products and services, and is required by law to provide opportunities for small businesses.” This may give FLYHT a slight edge in a competition with Collins Aerospace.

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In a KRC report dated May 12, 2022, there is this comment about potential business for the WVSS-II: “No revenues are attached to the (WVSS-II) acquisition – however, a potential order (for 30 units) from the UK’s Met Office and (the) transition away from Rockwell Collins as the service provider for the existing installs will positively impact FLYHT revenues starting in 2022.

If not already begun, the time for this “transition away from Rockwell Collins” (i.e. Collins Aerospace) may have come.

In this context, that a transition away from Collins will positively impact FLYHT revenues, it would appear that FLYHT intends to compete for the position of information service provider. Being the provider for new WVSS-II hardware should bolster any software services bid.

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Comment by RayDonovan78 on Feb 14, 2024 5:22pm
CF, Keep up the good work....Its back up to 5 CENTS preconsolidation !!
Comment by Coffeeme on Feb 15, 2024 5:14pm
Not much chance of NOAA changing the data handling side of things to a little company like FLYHT. I doubt if NOAA will hand its primary weather data collection abilities to a foreign company first of all. As well, Collins is so far into this from its years of ACARS.  It would be nice to think that FLYHT could be in the running, but based on data security NOAA being a national agency, I doubt ...more  
Comment by PeterPiper on Feb 16, 2024 8:29am
You really do not pay attention, do you? A few months ago, Flyht was invited to Congress to present to the house commitee on climate. I was amazed to here the reception they got from a Repubican lead commitee. Everybody in the room (I watched it live), Democrats and Republicans was onside about the need for weather monotoring. Shortly after they got a contract from the US goverment, which includes ...more  
Comment by tannin on Feb 16, 2024 2:52pm
Congratulations to all the Flight team........and many thanks to CF and others who keep me/us updated on this site. GReat news.
Comment by RayDonovan78 on Feb 16, 2024 3:55pm
Peter, We can see you are excited about todays SUCKER RALLY !!! Stock is 6 cents preconsolitation so have a tea and crumpet and relax. This will be back in the low 50's high 40's within a couple weeks. 
Comment by Coffeeme on Feb 17, 2024 2:38pm
Well then, I guess you are right like all the other times you have blown in the wind Mr. PP. If what you say is true, then Collins does not believe it is profitable, just as Panasonic and all the others that have dropped out of the weather data collection for profit market. For anyone to actually make a profit from weather data, they need to prove it is profitable to the airlines as ultimatley ...more  
Comment by tannin on Feb 17, 2024 9:51pm
coffeeme, govts foot the bill for weather info, because it's info they need. If anything, i'd expect the airlines to make a few cents on it. The weather gig is a logical add-on for FLY, and will add to income. Can't speak to $30, but can see FLY sp at $3.00....in...hmmm.... 3 years.
Comment by tannin on Feb 17, 2024 9:58pm
Added 5K @ 49c on the 13th. Imo, a lot of good news coming our way..........and, it's oh so welcome.
Comment by Coffeeme on Feb 18, 2024 6:51pm
AMDAR is not meant to be a profit center for the airlines or providers. Typically you might see an AMDAR provider paying a max of $0.10 per obversation. Also, AMDAR / WMO reports that many of the current airlines do not charge NOAA for the data, but have burried the cost into their ACARS or data transmission max data budgets. Do the airlines get paid for producing these data? No, the ...more  
Comment by Sammc10 on Feb 28, 2024 9:26pm
Sorry to ask, but would you mind sharing where you found the $0.10 figure?  Also, I read through the WMO Dec newsletter (https://wmo.int/resources/wmo-magazines/meteoworld/meteoworld-december-2023) and couldn't find anything about the soundings FLYHT averaged by day. Any chance you could help point out to me where I could find that?  Thanks so much! 
Comment by Sammc10 on Feb 28, 2024 10:21pm
Apologies, I found the relevant newsletter. I was looking at the general WMO newsletter, not the one for ABOs & AMDAR. Thanks again. Still interested in the $0.10 figure though.
Comment by Coffeeme on Feb 29, 2024 2:01pm
Here you go. The AMDAR Observing System Description | World Meteorological Organization (wmo.int)
Comment by Coffeeme on Feb 29, 2024 2:07pm
The AMDAR Observing System Description | World Meteorological Organization (wmo.int) https://community.wmo.int/en/activity-areas/aircraft-based-observations/amdar/amdar-description#:~:text=Communications%20Costs&text=Generally%2C%20operators%20of%20AMDAR%20Programmes,that%20US%240.10%20per%20observation. Darn, not sure why these links keep posting wrong. (User issue, I am sure!) Hoping this ...more