Marines buy more MRAP vehicles
Filed under: Contract Awards, Mississippi, Navistar, U.S. Marine Corps, production program
The USMC awarded Navistar a contract to purchase more of their new, lighter vehicles. The contract is worth about $750 M and will buy 800 or so vehicles. The trend in recent MRAP buys has been to get smaller and less bulky vehicles for service in Iraq and Afghanistan. The Marines especially have cut back on MRAP buys and moved away from the original vehicles.
Navistar makes the MRAP in Mississippi and the press release can be found at The Wall Street Journal’s MarketWatch.com site here.
Arrests in Afghanistan contracting scandal
Filed under: Contract Awards, Justice Department, U.S. Air Force, crime, logistics
Two Air Force personnel and three Afghan nationals were arrested over charges that bribes were paid to win contracts for military construction in Afghanistan. Two of the Afghans also resided in the United States. Supposedly a bribe of $30,000 was paid to the US Air Force officials to win a $1 M construction contract in 2004. Another bribe was paid later to win a road contract. Several US military and civilian personnel have been arrested and charged with contract related corruption in Kuwait, Iraq and the United States. With the amount of money going to the efforts in Afghanistan and Iraq there is always a chance for such crime.
There is more at The Wall Street Journal’s MarketWatch.com site.
Army buys a lot of Hellfires
Filed under: Contract Awards, Lockheed Martin, Military Aviation, U.S. Army, production program
The US Army awarded Lockheed Martin a contract to produce Hellfire missiles. These are normally fired from AH-64 and OH-58D helicopters and some Air Force aircraft. The missile is used by the US and its Allies. In Iraq and Afghanistan the Army has been using these with great effect to strike a variety of targets. The contract is valued at over $350 M and will purchase 1400 missiles. It is estimated that over 6000 have been used to date in the Global War on Terror.
For more see the Orlando Sentinal.
Army to buy more CH-47 aircraft
Filed under: Boeing, Contract Awards, Military Aviation, U.S. Army, production program
The Army awarded Boeing a 5 year contract for CH-47F cargo helicopters. The number procured is 181 with 10 options. There will also likely be some FMS sales from this contract. The CH-47F is the latest variant of the helicopter with sophisticated avionics and improved capabilities. 48 have been built to date. The CH-47F is one of the programs that was birthed from the Comanche termination. The others being the UH-60M, UH-72A and the JCA fixed wing aircraft. The CH-47F is especially effective in Afghanistan due to its high altitude and temperature capabilities.
To see the press release go to the Wall Street Journal’s MarketWatch here.
CROWS contract spreads to Maine
Filed under: Contract Awards, Federal Budget Process, Konsberg, Maine, Norway, production program
In another example of the international integration of the US Defense Budget a Maine company received a sub-contract from Kongsberg Defense of Norway to fabricate parts for the Crew Remote Operating Weapon System (CROWS). Kongsberg had recently won a contract in the Spring to build a part of the system. Now because of this contract the company in Maine is able to expand and hire a few more workers. The overall effect of the several hundred billion the US spends each year on defense is vast, affecting companies from Maine to Iraq and Afghanistan.
For more see the article on WCSH6’s website.
US Army buys more HUMVEES
Filed under: AM General, Contract Awards, U.S. Army, logistics, production program
AM General was awarded a contract to build more HUMVEES for the Army. See a press release here. The contract is worth over $240 M. The HUMVEE is the ubiquitous jeep replacement in the US military. Although the soft skinned version has been replaced in Iraq and Afghanistan by up armored versions and MRAPS, the US military still uses thousands of them all over the world as a general purpose vehicle.
USMC buys more, smaller MRAP vehicles
Filed under: Contract Awards, General Dynamics, U.S. Marine Corps, logistics, production program
The USMC purchased 773 MRAP from General Dynamics. See a press release here. The contract is worth over $500 M. These are RG-31 MRAP designed in South Africa and will be sent to Afghanistan. The RG-31 was selected as it is smaller and lighter then other MRAP in the inventory and according to this article the US military is now concerned with rollovers and the size of the MRAP vehicles already purchased. Although wheeled they are very heavy and have issues with the roads and bridges in Iraq and Afghanistan. MRAPs are very all as well and can roll over more easily then other tactical vehicles.
Army buys ammo for Afghanistan
Filed under: Allied Defense Group, Congress, Contract Awards, FMS, U.S. Army, afghanistan, logistics
Fresh off all of the problems with the contract let to AEY, the US has moved to a more traditional source for ammo for Afghanistan’s military and police. See the press release here. Allied Defense Group has been awarded a FMS contract to provide ammo. Allied has grown significantly over the last 7 years as the demand by the US for ammunition of all types, but especially small arms, has increased.
More USMC MRAP contracts
Filed under: Contract Awards, Navistar, U.S. Marine Corps, U.S. Navy, logistics, production program
According to this article Navistar International was awarded a contract by the US Navy to provide maintenance support for USMC MRAP vehicles. This contract is to provide parts and most likely Contractor Logistics Support (CLS) for the many vehicles that are being used in Iraq and Afghanistan. The contract value is over $700 M. It again illustrates that modern systems are not only expensive to procure but to maintain which opens up a whole new venue to defense contractors.
Poland buys modern radios
Filed under: Contract Awards, Harris Corporation, IT, production program
Poland which has actively supported US operations in Iraq and Afghanistan as well as moving to more NATO standard equipment obviously needs to upgrade from its Soviet era equipment. According to this press release they bought $15 M worth of Harris Equipment tactical radios to support overseas operations. As Poland and the other former Warsaw Pact countries continue their integration further orders like this will take place.
C-5 upgrade contract spills over
Filed under: Contract Awards, Goodrich, Lockheed Martin, Military Aviation, U.S. Air Force, logistics, production program
Goodrich announced that they received a subcontract from Lockheed Martin to provide engine pylons and casings for the C-5 Upgrade Program. See a press release here. The contract is worth $600 M and indicates the size of the total program. As the US is now dependent on a fleet of C-5 and C-17 aircraft continued extension of the life of the C-5 is critical to supporting combat operations in Afghanistan and Iraq.
SAIC does well on Iraq and Afghanistan
SAIC reported that their first quarter profits were up 25% over last year. See a story here. The company chose to highlight there contracts providing support to the various MRAPs deployed to Afghanistan and Iraq as part of the reason results were so good. Of interest is that the CEO, Mr. Dahlberg, complained of the fact that they cannot generate commercial growth to their satisfaction. This is often true of various large defense contractors. If there are significant decreases in the US defense budget in the future these companies may find it hard to sustain growth and profitability.
Canada looks at new armored vehicles
This story says that GD is pitching upgraded Light Armored Vehicles (LAV) used by the US to the Canadian Defense Department. Because the US chose a variant of a Canadian assembled vehicle originally designed in Europe the GD proposal is actually made in Canada. Kind of a win-win for the Government there. Canada is not necessarily looking for a new vehicle, but due to operational experience in Afghanistan a heavier, more armored vehicle is attractive. More to come, I am sure, on this issue.
CH-47 said vandalized
Filed under: Boeing, Military Aviation, U.S. Army, crime, production program
Bump - Boeing employee arrested for vandalizing aircraft. Story is here.
In a way this is good news. If it had been a quality issue then it might delay restarting the production line as they worked out new procedures and where they had gone wrong. The other good thing is they discovered the damage before they were fielded. The CH-47 is being used a great deal in Afghanistan and Iraq, as are all Army aviation assets, but in Afghanistan it is key due to the high altitude which limit smaller helicopters.
M4 criticism continues
Filed under: Colt, Contract Awards, U.S. Army, U.S. Marine Corps, production program
It is not news that the Colt M4 carbine has received a lot of criticism for its performance in Iraq and Afghanistan. This article summarizes a great deal of it. It turns out that the M4, originally a shortened M16 for use by armor and air crew, does not do well in dusty environments. The Special Forces have moved to an HK product, called the SCAR. Many in Congress and the Army have lobbied for a the regular Army and USMC to buy the SCAR as well. The Army did work on a new rifle, the XM-8, that was canceled recently due to problems with the program. Because this is a key piece of equipment for the military expect to see more about this and further efforts to broaden the small arms inventory.
Army awards iRobot FCS contract
Filed under: Boeing, Contract Awards, U.S. Army, development program, iRobot
Among the many parts of the Future Combat System (FCS) is a variety of ground and air unmanned vehicles. iRobot won a $60 M contract from the Army to provide parts of these systems. See the press release here. FCS will have a variety of vehicles, weapon systems, C4I systems and some unmanned systems to provide reconnaissance and intelligence collection. The Army has had success in Iraq and Afghanistan with small systems providing tactical intelligence to units, so this incorporation in FCS is a continued evolution of that effort.
Decline in Federal spending may reduce business for contractors
Filed under: Congress, Department of Defense, Federal Budget Process, U.S. Dept. of Homeland Security
This article in FederalTimes.com states that due to cutbacks in spending in the President’s 2009 budget the Federal government will reduce what it spends on contractors a substantial percentage. This is not only in DoD but also in Homeland Security and the State Department as well. Part of this is budget cuts to the various programs but also the predicted removal of US troops from Iraq. Whether this will really pan out will have to be seen. The final 2009 budget won’t be out until October-December, and there also may be various supplementals to support the war in Iraq and Afghanistan. At some point the wars will be winding down and this will have a significant effect on Defense’s spending. Historically the US budget for these activities have gone from boom to bust very quickly.
Two rivals team together for missile contract
Filed under: Boeing, Department of Defense, General Dynamics, Lockheed Martin, Northrop Grumman Corp., Raytheon, development program
Two of America’s largest defense contractors will join together to pursue the next generation air launched missile. Raytheon and Boeing announced that they signed a teaming agreement to prepare for the Joint Air to Ground Munition (JAGM) development program. See the press release here. The JAGM will replace Hellfire and Maverick missiles for launch from both fixed wing aircraft and helicopters. JAGM is at the early stages of its life and was started after the failure of the Joint Common Missile (JCM) program. See this for more on that. There is certainly no denying that the aging Hellfire and Maverick need replacing, although the Hellfire especially has seen a lot of use from OH-58D, AH-64 and Predator UAV in Afghanistan and Iraq. If Boeing and Raytheon team that leaves Lockheed Martin, Northrop Grumman and General Dynamics as the only other US companies that might bid on such a program.
Czech Republic to renogiate deal for APC
Filed under: Contract Awards, Czech Republic, Restructuring, Seyr Daimler Puch, production program
According to this article in ceskenoviny.cz the Czech government will renegotiate the terms of the APC contract that they canceled recently. See this related post. They are retesting the vehicles made by Steyr in Austria, and then will announce a decision. It also sounds like they are reducing the quantity. The Czech-Slovak split probably left both new countries with a motley collection of Soviet and Czech made equipment. I know recently the Czech government sent some Mi-24 and Mi-17 helicopters to Afghanistan for that country’s use.
Air Force awards LAIRCM contract to Boeing
Filed under: Boeing, Contract Awards, U.S. Air Force, production program
Boeing won a contract to buy and install Large Aircraft Infra-Red Countermeasures (LAIRCM) systems on US Air Force aircraft. These would go on tankers and transports and provide protection against heat-seeking missiles. While no aircraft has recently been attacked in Iraq or Afghanistan there remains the chance that it will be. Forbes.com article on this is here. The contract is worth $77 M.
The Weekly Standard on US Army personnel issues
This article in The Weekly Standard is an excellent discussion of the problems facing the Army with their officer corps. Due to the heavy rotations of tactical forces through Iraq and Afghanistan you now have company grade and field grade officers, those who lead small groups of troops, with a lot more combat experience then their senior officers. Read more
Army buys more Oshkosh Truck systems
Filed under: Contract Awards, Oshkosh Truck Corp, U.S. Army, logistics, production program
The Army awarded Oshkosh Truck a $49 M contract for more heavy tactical vehicle systems. See Forbes.com for more. The US military continues to buy armored vehicles for Iraq and Afghanistan to replace those that normally aren’t armored.
Canada requests old US helicopters for Aghanistan
According to this story in The Canadian Press, Canada is requesting from the US older CH-47D aircraft to support their efforts in Afghanistan. Canada is planning on buying some CH-47F, but until those are available they are trying to get some refurbished US Army aircraft. Read more
