Last Quarter Not Good For QinetiQ
QinetiQ reported a decline in their profits for 2009 which is a big change from last year when the company made over $1 billion. The recent removal...Israel To Provide Naval SAMS to India
Filed under: Business Line, Companies, Contract Awards, Countries, Events, India, Israel, Military Aviation, missile defense, production program
It is reported that the Indian Government is planning on signing a deal with Israel to provide Barak naval Surface-to-Air Missiles (SAMS). The reported contract is worth over $1 billion. Israel has long made efforts to export its indigenous arms in order to facilitate their development and lower the cost to the domestic military. India has turned to non-traditional arms suppliers in an effort to upgrade the technology levels of their equipment.
In the past India has purchased a great deal of weapons from Russia and England while trying to develop its own arms industry. Now it is buying from the United States and Israel. The Israelis have already signed a large deal for modern airborne radar and surveillance aircraft. They had also bought land based SAMs as well from Israel. This deal if it goes through will provide a significant capability to the Indian Navy.
Russia At A Loss With Iran Over S-300 Sale
Filed under: Business Line, Contract Awards, Countries, Events, Military Aviation, Russia, missile defense, production program
It is now being reported that the Iranian Government has failed to pay Russia for the advanced S-300 surface-to-air missile systems that they ordered in 2005. Russia is discussing canceling the contract and not delivering the hardware due to this non-payment. If it did the country would lose the $1 billion in contracted cost as well as the $400 million or so assessed in penalties.
The only way to make up the end of this large contract would be to sell the systems to another country. The S-300 is a very modern system and the purchase of it by Iran has met a great deal of criticism from the U.S. and other countries. It is assumed that the system will provide defenses for Iran’s nascent nuclear program. Not having the systems would make Iran more susceptible to attack if required.
Logistical Costs Burden Operations In Afghanistan
Filed under: Business Line, Congress, Countries, DLA, Department of Defense, Events, Federal Budget Process, Services, U.S. Air Force, U.S. Army, logistics
Wars are expensive there is no doubt. As part of the planning for adding troops to Afghanistan the U.S. Department of Defense was asked why it costs about a $1 billion a year for a 1,000 soldiers to operate there. One of the main expenses it turns out is fuel. To get one gallon of JP8 to a soldier or airman who needs it costs about $400 if all related costs are taken into account. This figure alone is giving Congress second thoughts.
That is because the gas is shipped to Pakistan and then trucked to Afghanistan. To get it to the various outposts and bases sometimes requires aircraft and helicopters. For a helicopter to carry a gallon of gas probably takes a few gallons of gas and at a high maintenance rate. There is also the cost of all the personnel and contractors to handle the gas and supplies.
This should not really surprise anyone. In John Ellis’ book about World War II soldiers, On The Front Lines, he estimated it took about eleven personnel to support one front line soldier in the Pacific and almost ten in the European. That counted everyone who touched a ton of supplies as it moved from the U.S. to the actual soldier. That cost alone was fairly high. Take into account the gas used to move it and the maintenance of the ships, trucks and aircraft and the costs go up even more. Afghanistan is remote and costs even more.
Boeing’s P-8I deal with India set to roll
NEW DELHI, Aug. 13 (UPI) -- Boeing Co. appears set to move ahead with its $2.1 billion defense contract with India to supply eight P-8I long-range maritime reconnaissance planes to the Indian navy to safeguard the country's vast coastline.
Canada Buys CH-47 Helicopters
Filed under: Boeing, Business Line, Canada, Companies, Congress, Contract Awards, Countries, Events, Federal Budget Process, Military Aviation, United States, logistics, production program
Canada awarded Boeing a contact for fifteen CH-47 helicopters. The contract has a value of over $1 billion and requires and equivalent amount of offsets in the Canadian economy. Boeing already is selling the latest version of the heavy lift helicopter so valuable in Afghanistan to the U.S. and Great Britain. Canada being the third most heavily involved country in that war will certainly be able to use them.
The aircraft will be delivered in either late 2013 or early 2014 as they fit in to the current production. Canada has been requiring significant offsets in their latest round of contracts and this favor many U.S. companies as they have either Canadian subsidiaries or already buy parts and support from that nation.
So far the Obama Administration has made little changes to the existing plans for U.S. Army aviation modernization with the UH-60M, UH-72A and CH-47F. The replacement of the Armed Reconnaissance Helicopter (ARH) original canceled contract is also on current path for continuation at this time.
Latest JSF Order Placed
Filed under: Business Line, Companies, Congress, Contract Awards, Countries, Department of Defense, England, Events, FMS, Federal Budget Process, Lockheed Martin, Military Aviation, Norway, Restructuring, Services, U.S. Air Force, U.S. Marine Corps, development program, production program
The United States government acting for itself and its Allies awarded a contract to Lockheed Martin for the next procurement of the F-35 Joint Strike Fighter (JSF). The $2.1 billion contract option restructured an existing advanced procurement contract into a Cost Plus Incentive Fee (CPIF). It was the third option to an existing Low Rate Initial Production (LRIP) contract.
As part of this option seventeen aircraft were ordered for delivery by the first quarter of Fiscal Year 2012. Seven of the JSF will be for the U.S. Air Force and seven for the U.S. Marine Corps. One was purchased for Norway and two for Britain as part of the several JSF international partners.
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