--- title: "We Now Know Why Sierra Nevada Corp Canned Its Navy Jet Trainer Bid" description: "SNC has provided a detailed explanation for why its clean-sheet Freedom Jet isn't competing to replace the Navy's T-45s." date: "2026-11-05" modified: "2026-11-05" authors: - name: "Joseph Trevithick" job_title: "Deputy Editor" link: "https://www.twz.com/authors/joseph-trevithick.md" - name: "Thomas Newdick" job_title: "Staff Writer" link: "https://www.twz.com/authors/thomas-newdick.md" url: "https://www.twz.com/sea/we-now-know-why-sierra-nevada-corp-canned-its-navy-jet-trainer-bid" categories: - "Air" - "Navies" - "Sea" - "Trainers" - "U.S. Navy" --- # We Now Know Why Sierra Nevada Corp Canned Its Navy Jet Trainer Bid ![The Sierra Nevada Corporation (SNC) says its decision not to submit a bid to replace the U.S. Navy's T-45 Goshawk jet trainer was driven by the service's insistence on a fixed-price contracting structure.]() *SNC* The Sierra Nevada Corporation (SNC) says its decision not to submit a bid to replace the U.S. Navy's [T-45 Goshawk]() jet trainer was driven by the service's insistence on a fixed-price contracting structure. The company has also called attention to the potential export opportunities that could emerge for whoever ultimately wins the [Undergraduate Jet Training System]() (UJTS) competition. For more than a year, SNC had touted plans to compete for UJTS with its [Freedom Jet](), which was set to be the only clean-sheet design in the running. However, the company confirmed on Tuesday that it had not done so. This has left the [Beechcraft M-346N](), based on the established [M-346 Master]() jet trainer, submitted by a team made up of U.S. firm Textron and Italy’s Leonardo, as [the only known entrant](). ![]() *A rendering of the Beechcraft M-346N. *Textron** Through UJTS, the Navy hopes to acquire 216 new jet trainers to replace its [aging fleet of approximately 200 T-45s](). The first versions of the Goshawk began entering Navy service in the early 1990s, and the fleet [has received significant upgrades]() since then. The aircraft are aging, and operating and sustaining [them have become increasingly challenging](). A spate of reported [hypoxia-like physiological episodes]() among pilots led to the [development of a new oxygen system]() in the early 2020s. There [have been several]() Goshawk [crashes]() in [recent years]() due to a variety of factors. The Navy [lost another T-45 just in May](), with the two individuals onboard thankfully surviving. ![]() *A US Navy T-45 Goshawk jet trainer. *USN** SNC [had previously said]() that the Navy's contracting structure was the central factor behind its decision not to submit a proposal for UJTS, but did not elaborate initially. *TWZ* reached out for more information and subsequently received a much more detailed response. ## Fixed-price risks "SNC's decision was driven by the acquisition structure, not the aircraft, the team, or the mission. The current solicitation requires industry to commit to firm-fixed-price production before the aircraft design has fully matured," SNC told us. "This creates a level of risk we could not responsibly accept and a risk that we believe the Navy will inherit as future cost increases and schedule delays. After careful review, we concluded that we could not commit to pricing a future configuration that has not yet completed the normal design maturation process." ![]() *A rendering of a pair of SNC Freedom jet trainers. *SNC** "Our concerns centered on three related issues: firm-fixed-price production before design maturity, limited visibility into the program's long-term funding profile, and the requirement to lock in production pricing before key design decisions are finalized," the company continued in its lengthy statement. "Taken together, those elements place a significant amount of program risk on industry while important aspects of the program are still evolving." As the name indicates, firm-fixed-price contracting involves the customer and the vendor agreeing to a hard cost figure up front. Cost growth due to delays and other factors is then generally shouldered by the vendor, though the parties can also renegotiate the terms down the line. The pros and cons of firm-fixed-price have been [a particularly hot topic of debate]() between the U.S. military and its suppliers [for years now](). It has been argued that fixed-cost deals are good for U.S. taxpayers, by promoting accountability and preventing an endless stream of funding going into programs that are not delivering results. At the same time, questions have been raised about incentives, or the lack thereof, and the compounding impacts of ballooning costs on program schedules due to [factors potentially beyond a company's control](). Boeing has become something of a poster child for the pitfalls of fixed-price contracting that can emerge on both sides of the equation. In recent years, the company has seen billions of dollars in losses on high-profile fixed-price deals, [particularly with the U.S. Air Force](). This includes [the KC-46 Pegasus aerial refueling tanker]() and [T-7A Red Hawk jet trainer programs](). The company [has lost more than $3 billion]() just in the course of work on two new VC-25B Air Force One jets. This is in no small part due to [quality control problems]() and [other issues at Boeing](). At the same time, fallout from the COVID-19 pandemic and other macroeconomic factors have also played a part. ![]() *A rendering of a VC-25B Air Force One jet. *Boeing** In April, President Donald Trump signed an [executive order that outlined much of this continued debate](). It also declared that "it is the policy of my Administration that fixed-price contracts with performance-based considerations should serve as the default and preferred method of procurement in order to advance cost predictability and budget discipline, appropriate contractor incentives and accountability, and streamlined procurement and contract administration." Earlier in the year, the Navy [had notably announced]() an increase in the total cost ceiling for the prospective UJTS contract from approximately $1.8 billion to $2.7 billion. At the same time, [additional questions have been raised]() about the availability of funding for the program at the time of the contract award, which is now set to come late next year. ## SNC's clean-sheet Freedom design SNC had already been taking something of a riskier approach to UJTS. As we noted in the opening of this story, the Freedom jet trainer had been the only clean-sheet design set to compete to replace the Navy's T-45s. At the time of writing, a prototype has yet to fly. In contrast, the Beechcraft M-346N is based on [a design in widespread operational service globally]() today. Lockheed Martin and Boeing had been expected to put forward versions of existing jet trainers [before they dropped out of the running]() earlier this year. Furthermore, SNC [had been continuing to develop the Freedom jet]() to be capable of performing [carrier qualifications and simulated carrier touch-and-goes]() at base on land. This is despite the Navy having long ago axed those requirements from the UJTS program as part of a broader shift in how it trains naval aviators. Unlike the service's current T-45s, the future UJTS jet trainers are [not required to be capable of operating from real carriers]() at all. https://www.youtube.com/watch?v=vmTbP1j5DJ8 Continuing changes to the Navy's naval aviation training pipelines [have been and still are controversial](), but it [has shown no signs of backtracking](). Service officials consistently point to developments [in virtualized training]() and [assisted carrier landing capabilities]() as having fundamentally changed what is required to safely and effectively produce new naval aviators. https://www.youtube.com/watch?v=pt1sTYwLgjw https://www.youtube.com/watch?v=GBh8DiFBNB8 "Our decision does not reflect any change in confidence in the Freedom Trainer. Freedom was designed specifically for naval aviation training as a clean-sheet, carrier-capable solution intended to deliver modern training capability and long-term lifecycle savings," SNC said in response to queries this week. "We continue to believe it is the best option for the Navy's future jet training needs." In [statements earlier this week](), SNC expressed its willingness to re-engage with the Navy if changes are made to its T-45 replacement plans. ## Export potential for any future Navy jet trainer SNC has also now shared insights into how it previously attempted to address its concerns about the UJTS contracting structure with the Navy. The company notably highlighted potential for export deals facilitated through the U.S. government's [Foreign Military Sales]() (FMS) program. "SNC engaged extensively with the Navy on the UJTS requirement over several years and raised these specific concerns directly," per the company's statement to us. "We appreciate the professionalism and openness of the Navy and PMA-273 team and have remained engaged in a constructive dialogue throughout the process." PMA-273 is the Naval Undergraduate Flight Training Systems Program Office at Naval Air Systems Command (NAVAIR). ![]() **SNC** "We have shared several ideas with the Navy, including additional risk-reduction activities through preliminary design review, proposals based on more mature designs and acquisition approaches that better align production commitments with design maturity," according to SNC. "Greater visibility into the program's long-term funding profile would also help, with additional pre-planned Foreign Military Sales partnerships developed with and for the joint force training and readiness." "Programs at this level should be considering bringing our allied partnership and investment to the table to drive production and affordability on both the front end and the back end," SNC's statement explains. "There are more than 600 FMS trainer aircraft requirements that could be combined in a joint program for the UJTS at a tremendous cost offset to the Department of War" When Boeing won the Air Force's T-X competition with what became the T-7A Red Hawk in 2018, *TWZ* also [highlighted the immense potential for foreign sales]() that could result. Despite [interest]() from [several countries]() for [versions of the Red Hawk](), no export sales of T-7s have yet been announced. The T-7 program, which is notably being run under a fixed-price contract, has also been beset by [technical issues, delays, and cost growth](). ![]() *A US Air Force T-7A Red Hawk jet trainer. *USAF** How the Navy proceeds now with UJTS, if at all, very much remains to be seen, especially with the M-346N being the only known serious entrant at this point in time. "The program office is restricted from disclosing this information or commenting on active proposals," a Navy spokesperson told *TWZ* when asked for an update on UJTS following SNC's decision not to bid. "To maintain the integrity of the competitive process, source selection information including bidder identities and proposal details, are restricted from public disclosure." It is important to note here that the UJTS program schedule [has already slipped multiple times](). The original goal was for the Navy to begin receiving new jet trainers in 2028. Now, the initial contract for these jets is not even expected to come until the fourth quarter of Fiscal Year 2027, which runs between July and September of next year. "I'm unable to share details of the proposal or speculate about the Navy's next steps," Textron also told *TWZ* in a separate statement. "Textron Aviation Defense also brings an established American workforce, supply chain and production capability to support delivery at scale. Combined with a mature Integrated Training System that brings together live, virtual and constructive training, the M-346N offers the U.S. Navy a low-risk solution designed to prepare aviators for the demands of the high-end fight." "Ultimately, the Navy is best positioned to determine the path forward, and we stand ready to re-engage if the approach is revisited," SNC told us. "Our view is simply that robust competition delivers the best value for the Navy and the taxpayer over a program of this duration. We would welcome the opportunity to compete under a structure that we can responsibly support." For now, as far as we know, the Navy is pushing ahead with UJTS, even though there appears to be only one contender for the fixed-price contract. *Contact the author: joe@twz.com* ## Author Joseph is *TWZ’s* Deputy Editor, helping to oversee the site’s highly experienced and dedicated team, while also writing informative and impactful defense and national security content. He lives right in the thick of it in the Washington, D.C. area. ### Author social links [Twitter]() [Bluesky]() ## More - [The Beechcraft M-346N Is The Only Known Aircraft Left In The Navy’s Jet Trainer Competition]() - [SNC’s Freedom Jet Enters Race To Replace Navy’s T-45 Goshawk Trainer]() - [Boeing Drops Out Of Navy’s T-45 Jet Trainer Replacement Competition]() - [We Fly Aboard The M-346 That Could Become The Navy’s Next Jet Trainer]() - [Everything We Just Learned About SNC’s Freedom Jet Trainer Aiming To Replace Navy T-45s]() - [Navy’s T-45 Replacement Will Not Be Capable Of Making Carrier Landing Touch And Goes]() - [M-346N Pitched To Replace Navy’s T-45 Goshawk Jet Trainers]() - [Navy Delays Jet Trainer Replacement As T-45 Wing Hits One Million Flight Hours]()