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Panetta Lays Out Initial Defense Budget Spending Plans

Yesterday the Pentagon made a series of presentations and media events to lay out the initial numbers for future spending. The goal of the Secretary Leon Panetta’s Defense Department is to cut $487 billion in ten years with the current Five Year Defense Plan (FYDP) containing over half the reductions. As part of this DoD released a 15 page document and a one page budget summary that provides top level guidance on the plans.

Many of the planned cut backs are based on the idea that with the disengagement of forces in Iraq and Afghanistan cuts may be made in those areas. This means that money for the “Global War on Terror (GWOT)” or “Overseas Contingency Operations (OCO)” as that support was called will see significant cuts. In FY10 it was $163 billion, in FY11 $159 billion with $115 billion planned for FY12 and only $88 billion in FY13. This adds up to a 54 percent reduction and saves $75 billion in those three years.

Since personnel costs both for the current Active members, their dependents,the reserve force and retirees make up about thirty percent of the defense budget there will be reductions and adjustments to their size and benefits. 100,000 Soldiers and Marines will be eliminated from the active military with the Army losing approximately 8 brigades of troops. Even though the Marine Corps has grown substantially since 9/11 it maintains the same force structure of 3 active divisions and 1 reserve so there will be cuts to the size of individual units and support forces. The Pentagon states that even with these cuts the size of the ground forces will be bigger then on 9/11. There will also be increases in medical costs to the individuals and a commission to revamp military retirement benefits.

The Air Force and Navy will too see reductions in their force structure. The Navy will retire some ships early while delaying the construction of others. This means that it won’t grow as fast as currently planned. The Air Force will lose some tactical aircraft, cut transports and reduce planned buys of some F-35 Joint Strike Fighter.

Only a few programs are targeted for elimination so far. These include the C-27 Joint Cargo Aircraft used primarily by the Air National Guard. It is planned the C-130 will provide needed capability there. The new Joint Air-to-Ground Missile (JAGM) which is to replace the Maverick and Hellfire missiles will be scaled back. It was about to select its prime contractor. The Global Hawk Block 30 will finish production and there will be some other nibbling around the edges.

All of this ads up to some significant reduction in business for defense contractors. The JAGM was a large contract that either Raytheon (RTN) or Lockheed Martin (LMT) were hoping to win. The cuts in ship production will affect Huntington Ingalls Industries (HII) and General Dynamics (GD). Reduction in JSF will certainly affect Lockheed and its support contractors.

The contractors who provide support in Afghanistan and at bases across the U.S. will see cuts as there are smaller, less troops to support. Logistics needs will also be cut back so those making things like battle armor, uniforms, and small arms will also be affected.

Overall it will will remove about 9% of planned spending in FY13-17 from the defense budget. That will cause some companies severe pain depending on how broad their product line and customer base is.

Of course Congress is the final say and they could easily keep some of the funding for some of the programs cushioning the cuts and blows to the defense industry. The elections this year will also have a key affect.

A lot more to come as yesterday was just a starting point.

Photo is from U.S. Navy Imagery’s Flickr photostream.

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House Begins to Cut Defense Budget

The House Armed Services Committee (HASC) approved by a 60 to 1 vote their version of the 2012 Defense Budget. This is basically similar to what was requested by the Obama Administration and reflects the first real reduction to U.S. defense spending since the attacks of 9/11.

As in previous budgets it was split into three parts: first, the base budget which funds the U.S. military and its investment, production, training and support activities; second, the cost of “Overseas Contingency Operations” (OCO) which used to be called the Global War on Terror (GWOT) which are the costs associated with operations in Iraq and Afghanistan and finally it also includes money for the Department of Energy (DOE) support to the U.S. military which is primarily related to nuclear weapons.

The base budget was about $535 billion which was a slight increase on the $533.8 billion programmed in 2010 for such activities. Due to the fact that no 2011 budget was officially passed by Congress until late in the year the Department of Defense relied on continuing resolution which restricted spending to 2010 levels. When the final budget deal was struck funding the rest of the year total planned spending remained consistent with 2010 levels. The Obama Administration had requested $548 billion with almost $160 billion for OCO. This amount was not approved or provided.

The HASC bill approved amounts to a reduction as the OCO funding was reduced to only $119 billion from the $130 billion in 2010 and the $160 billion proposed in 2011. Total spending in 2012 based on the HASC will be $690 billion including the DOE funding of $18 billion. This is a net increase over 2010 but almost $20 billion less then the planned spending in 2011.

What does this all mean for defense contractors? If the House totals hold, and after the work with the Appropriations Committee and the Senate there may be many changes in what the money is spent on, it will be the first net reduction in U.S. defense spending in 10 years. This will mean that some contracts won’t get funded and some companies will see their revenue and earnings reduced.

The cuts to OCO mean those companies heavily involved in providing support and equipment for Iraq and Afghanistan will see the first cuts. The Army’s LOGCAP IV contract provides much of this support for deployed forces and companies like DynCorp International, Fluor and KBR have received large contracts as part of it. The reduction to OCO may affect LOGCAP and those companies involved in it.

It will also mean less bullets, beans and gas will be bought to support the troops in Iraq especially. Suppliers of basic items may see reductions in the amount of items purchased from them. This includes ATK who make ammunition as well as the various gasoline refiners and providers. As the fighting in Iraq and Afghanistan winds down the DoD will be concentrating on making new weapon systems and repairing and refitting the equipment used by the military in those operations.

If and when all of the U.S. and Allied forces return from the fight there will be no need for OCO funding at all. This seems to indicate that the base U.S. defense budget will sink to about $500 – $600 billion a year. This will provide opportunities for those companies providing new, advanced weapons as well as supporting the U.S. military in its bases in the U.S., Asia and Europe. The next round of cuts though will be to this base budget. That will affect the entire U.S. defense industry and may lead to reductions in the number of contractors either through M&A or just moving to other business lines.

Defense spending has been a major prop to the U.S. economy as a whole as it supports businesses and jobs across all of the states. If the civil market has not recovered sufficiently cuts to this money will have a negative effect on many local economies across the U.S. already being experienced as some contracts are eliminated or reduced.
This HASC vote may be the first step into a period like the Nineties which saw wholesale changes to the U.S. defense industry and the countries’ industrial base as a whole.

Photo from David Paul Ohmer’s Flickr Photostream.

Article first published as House Begins to Cut Defense Budget on Technorati.

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EOIR Technologies Inc. is Awarded a $245M Contract by the Night Vision and Electronic Sensors Directorate (NVESD) for Engineering Support and Technology Assistance — Press Release

EOIR Technologies Inc. is Awarded a $245M Contract by the Night Vision and Electronic Sensors Directorate (NVESD) for Engineering Support and Technology Assistance

FREDERICKSBURG, Va., Oct. 20 /PRNewswire/ — EOIR Technologies Inc., an industry leading system design and development company, announced today that it has been awarded a prime contract in the amount of $245M by the Night Vision and Electronic Sensors Directorate (NVESD) of the US Army’s Research, Development and Engineering Command (RDECOM) to provide engineering support and technology assistance. The Quick Reaction Engineering for Warfighter Sensing (QREWS) contract supports research, development, experiments, engineering, prototyping, and field support to develop quick reaction war support services and material directly related to NVESD efforts at FT Belvoir and FT AP Hill, VA performing Quick Reaction Programs (QRPs), Overseas Contingency Operations (OCOs), Operation Enduring Freedom (OEF), and Operation Iraqi Freedom (OIF) requirements. Dr. Joe Mackin, President and CEO of EOIR Technologies, made the announcement.

The Army’s NVESD research and development group is one of the U.S. military’s most advanced technological leaders. The Army’s NVESD has been responsible for numerous key innovations in the fields of optical electronics and thermal imaging for weapons targeting, electronic surveillance and other mission-critical military applications.

“We look forward to continuing our long and successful relationship with the NVESD,” said Dr. Mackin. “EOIR has a great deal of experience with engineering support and we are excited to create enhancements that will improve the Warfighter’s capabilities. EOIR will continue to be committed to innovation, technology and operational expertise while supporting NVESD’s overall mission.”

About EOIR Technologies: EOIR Technologies (www.eoir.com) is an industry leading system design and development company, staffed with over 200 highly talented men and women. They have developed a reputation for excellence in Research Development and Engineering Services in the areas of sensor science including electro-optical/infrared devices, advanced remote sensing applications, and specialized chemical detection systems. Through their focus on innovation and excellence, EOIR contributes to ensuring that the United States is the most technically sophisticated military and intelligence organization in the world. Understanding the client’s mission is core to the EOIR solution. EOIR blends innovation, technology, and operational expertise with the client’s mission to develop best-in-class solutions. EOIR has been providing innovative sensor engineering products and services to customers within the Department of Defense for nearly thirty years.

SOURCE EOIR Technologies Inc.

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U.S. Department of State Awards Northrop Grumman African Training Contract

U.S. Department of State Awards Northrop Grumman African Training Contract
July 6, 2010

HERNDON, Va. – The U.S. Department of State has awarded a contract to Northrop Grumman Corporation (NYSE:NOC) to continue providing staff to conduct peacekeeping operations and humanitarianism assistance training for the African Contingency Operations Training and Assistance (ACOTA) program.

The contract has a potential value of $150 million over five years.

"The ACOTA program is to arguably the most successful engagement program that the U.S. State Department has had in Africa. The objective is to enable participating nations' militaries to develop their own trained unit capacity to provide peacekeeping support operations where required," said Mike Devlin, Northrop Grumman Technical Services International Program Director. "We are most pleased that we have been again selected to continue successfully supporting the ACOTA mission."

"International collaboration is a crucial component to peacekeeping efforts," said Tom Vice, corporate vice president and president of Northrop Grumman Technical Services. "We've been supporting the ACOTA program for more than 11 years in 22 countries, and we embrace the opportunity to spend another 5 years supporting these African nations."

Northrop Grumman provides the staff and training to select African Nations through seminars, instruction, simulation-supported exercises and field training. Nations currently participating in the ACOTA program include Benin, Botswana, Burkina Faso, Burundi, Djibouti, Ethiopia, Gabon, Ghana, Kenya, Mali, Malawi, Mauritania, Mozambique, Nigeria, Senegal, Sierra Leone, South Africa, Rwanda, Tanzania, Togo, Uganda, Zambia. Northrop Grumman has supported the African Crisis Response Initiative/African Contingency Operations Training and Assistance (ACRI/ACOTA) program since its inception in 1998 and designed the initial training materials and conducted computer-assisted peacekeeping exercises for African Partner Nations.

Work on the ACOTA program will be performed on site in the participating African nations and from Northrop Grumman's Leavenworth, Kan., facility, where Northrop Grumman supports several other military training contracts.


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House Armed Services Committee: House Armed Services Committee Approves Fiscal Year 2011 Defense Authorization Bill

May 24, 2010 by · Comment
Filed under: Syndicated Industry News 
House Armed Services Committee: House Armed Services Committee Approves Fiscal Year 2011 Defense Authorization Bill
Ike Skelton, Chairman
May 19, 2010

House Armed Services Committee Approves Fiscal Year 2011 Defense Authorization Bill

Washington, DC – House Armed Services Committee Chairman Ike Skelton (D-Mo.) announced that H.R. 5136, the National Defense Authorization Act for Fiscal Year 2011, was reported favorably by the committee on a vote of 59 to 0. A detailed summary of the bill as reported is available here.

H.R. 5136 authorizes $567 billion in budget authority for the Department of Defense (DOD) and the national security programs of the Department of Energy (DOE). The bill also authorizes $159 billion to support overseas contingency operations during fiscal year 2011, and authorizes $34 billion for fiscal year 2010 supplemental appropriations for overseas contingency operations in Afghanistan, Iraq, and to provide humanitarian and disaster assistance to assist victims following the earthquake in Haiti.

Skelton released the statement below following the committee’s approval of the defense authorization bill:

“This defense bill aligns our military strategy with the 21st century to sustain the 2 wars today and prepare for the threats of tomorrow – whatever and wherever they may be. The bill reflects our continued commitment to defend America, support U.S. service members and their families, and keep Americans safe.

“The bill makes counterterrorism a priority, improving the ability of our military to protect themselves at home and abroad and providing them with the additional tools they need to disrupt, dismantle, and eventually defeat al Qaeda and its extremist allies. The bill includes funds to implement the initial recommendations of the Fort Hood Follow-on Review conducted by the Department of Defense in the wake of the shooting at Fort Hood. The bill also addresses urgent force protection needs in Afghanistan, allowing DOD to cut through red tape by expanding rapid acquisition authority to deliver the resources needed to protect our troops.

“The bill enhances the capacity of the U.S. military, particularly the U.S. Special Operations Forces, to act directly against terrorist organizations. The bill also builds upon past efforts and creates new initiatives to discredit extremist ideology, increasing funds for research and taking additional steps to counter the use the Internet by extremists.

“Recognizing the important role that foreign nations play in helping us succeed in our fight against terrorists, the bill expands funding to build the partnership capacity of foreign military forces to participate in support of military and stability operations. The bill authorizes Coalition Support Funds to reimburse nations providing support in connection with the wars in Iraq and Afghanistan and with the broader counterterrorism and counterinsurgency mission in Pakistan to fight against al Qaeda, the Pakistan Taliban, and other violent extremists. The bill also extends the authorization of the Pakistan Counterinsurgency Fund to ensure the success of efforts to build the counterinsurgency capabilities of Pakistan’s security forces.

“Earlier this year, the President implemented a new counterinsurgency strategy in the way in Afghanistan to reverse the downward momentum from nearly a decade of no real plan under the previous administration. To better reflect these changes in the U.S. strategy, the bill requires a new semi-annual report on trends and developments in Afghanistan and requires reporting on progress in stopping the momentum of the Taliban and their allies, building the capacity of the Afghan National Security Forces, and building the capacity of the Afghan government.

“The bill also continues close Congressional oversight of operations in Iraq, requiring reports focused on the redeployment of U.S. troops and their equipment over the next few months, and on the development of military capabilities that are necessary for the Government of Iraq to stand on its own.

“The bill prepares America to deal with 21st century threats, moving away from the Cold War mindset to adopt smarter policies on issues such as missile defense and nonproliferation. The bill provides $10.3 billion, $361.6 million above the budget request, for ballistic missile defense and in support of the Administration’s Phased Adaptive Approach, which addresses immediate needs. To prevent the spread of weapons of mass destruction and to reduce the risk that these weapons could fall into terrorists’ hands, the bill fully funds the DOD Cooperative Threat Reduction (CTR) Program and the DOE’s nonproliferation programs, which includes funding for the President’s effort to secure within four years all known vulnerable nuclear material around the world that can be used for weapons.

“Our military personnel are the heart and soul of our national security, and this bill makes sure that our troops and their loved ones are receiving the first class benefits that they deserve. To improve the quality of life for our forces and their families, the bill provides a 1.9 percent pay raise for all service members, continuing our efforts to reduce the pay raise gap between the uniformed services and the private sector. The bill also increases the maximum amount of hostile fire and imminent danger pay for the first time since 2004, and increases family separation allowance for our service members whose deployment or temporary duty requires them to live away from their families.

“The bill includes provisions based on the recommendations of the Defense Task Force on Sexual Assault in the Military Services, reflecting the committee’s commitment to protecting service members by improving DOD’s sexual assault prevention efforts and response to victims.

“The bill also allows TRICARE beneficiaries to extend coverage to their dependent children until age 26, the same benefit that was afforded to individuals with private insurance policies under the new health care law. Other initiatives to support military families include $345 million to modernize DOD schools, $65 million for Impact Aid education programs, and the creation of a new career development pilot program for military spouses.

“The strain of two wars has taken a toll on military readiness. To boost readiness and reduce the strain on our forces, the bill increases the size of the military by 7,000 Army troops and 500 Air Force personnel, and recognizes the Navy’s need to temporarily remain at a higher force size, which reflects the President’s budget request. The bill significantly increases Operation and Maintenance (O&M) funding to support the daily operations, training, and administration of U.S. military forces at home and abroad

“The bill also provides critical funds to restore equipment stocks, including $9.9 billion for Army and Marine Corps equipment reset and depot maintenance, $4.5 billion for depot maintenance of active and reserve Air Force aircraft, and $109 million for Navy ship and aircraft depot maintenance. To address National Guard and Reserve equipment shortfalls, the bill authorizes $7.2 billion to provide aircraft missiles, wheeled and tracked combat vehicles, ammunition, small arms, tactical radios, and other equipment.

“To help prepare for future military requirements, the bill authorizes major weapons programs and platforms that will protect our national security in the years ahead. Demonstrating our commitment to reverse the decline in the size of the Navy fleet, the bill authorizes 9 new ships, including 2 Virginia-class submarines, 2 DDG 51 destroyers, and 2 Littoral Combat Ships. The bill also authorizes F-35 competitive engine program, a necessary insurance policy on the trillion dollar Joint Strike Fighter program that will generate long term savings for taxpayers and also reduce the national security risk of depending on a single engine for ultimately 95 percent of our nation’s fighter fleet.

“In keeping with the committee’s interest and longstanding defense policy oversight, the bill seeks to improve the Quadrennial Defense Review (QDR) process. The bill replaces the QDR Independent Review Panel appointed by the Secretary of Defense with a National Defense Panel consisting of ten members, with the Secretary of Defense appointing two panel co-chairs, and the Chairmen and Ranking Members of the House and Senate Armed Services Committees each appointing two members.

“Each year, members of the House Armed Services Committee work very hard to make this the best bill possible for our military and for our nation. I want to thank all of our members for helping our committee fulfill our Constitutional obligation to raise and support the U.S. Armed Forces.”

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Sniper ATP Demonstrates Enhanced ISR Capability at Empire Challenge

Sniper ATP Demonstrates Enhanced ISR Capability at Empire Challenge
September 15, 2009

ORLANDO, FL, -- Lockheed Martin's [NYSE: LMT] Sniper. Advanced Targeting Pod (ATP) demonstrated its advanced intelligence, surveillance and reconnaissance (ISR) capability during the recent joint forces Empire Challenge exercise. The enhancements respond to U.S. defense officials' call for improved ISR for convoy route reconnaissance and battlefield situational awareness.

During the joint and coalition military exercise conducted at Nellis Air Force Base, NV, and China Lake Naval Air Station, CA, pilots demonstrated a Sniper pod with enhanced algorithms, a digital data recorder and a high-definition sensor and datalink. U.S. Air Force crews flew the pod on an F-16 in support of the exercise's key objective - to evaluate proposed ISR solutions for Warfighter requirements.

"Field reports from ongoing contingency operations routinely attest to the use of the Sniper ATP to conduct non-traditional ISR missions," said Ken Fuhr, Fixed-Wing Program director at Lockheed Martin Missiles and Fire Control. "To better serve the Warfighter, we're expanding the pod's role as an ISR tool. Empire Challenge provided an excellent opportunity to demonstrate the pod's capability in support of improvised explosive device search, convoy support and armed overwatch."

During the exercise, Sniper pod's ISR capabilities demonstrated autonomous reconnaissance and data collection, providing a complete battlefield picture for intelligence operations. Directed by pre-defined or pilot-designated flight points, this capability can be used to monitor convoy routes or wide areas of interest, in addition to capturing images of infrastructure such as oil pipelines, power lines and roadways.

Packaged in a single lightweight pod, Sniper ATP's enhanced image clarity provides critical long-range, positive identification of both moving and stationary air and ground targets, as well as real-time targeting for advanced laser-guided weapons. It is also equipped with a video downlink that relays high-resolution streaming video to forward-deployed forces for non-traditional ISR and rapid target coordination.

Competitively selected as the U. S. Air Force's advanced targeting pod in 2001, the Sniper ATP is used by the U.S. Air Force in current combat operations and is actively deployed on five different U.S. and coalition platforms.

With a proven 98 percent field availability rate and demonstrated supportability worldwide, Sniper ATP is designed to be "plug-and-play" for optimal flexibility. The Sniper pod is operational on U.S. Air Force, Air National Guard and multinational F-16, F-15, B-1, CF-18, Harrier, A-10 and Tornado aircraft. It is currently being integrated and is flying on the B-52. Sniper pods provide discriminating capability to the U.S. Air Force, Air National Guard and 11 international air forces, including coalition partners.

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GAO Report: Overseas Contingency Operations: Reported Obligations for the Department of Defense. GAO-09-791R

March 12, 2010 by · Comment
Filed under: GAO, Syndicated Industry News 
July 10, 2009

The Government Accountability Office (GAO) today released the following reports, testimony, and correspondence:

CORRESPONDENCE
Overseas Contingency Operations: Reported Obligations for the Department of Defense. GAO-09-791R, July 10

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General Dynamics Awarded $154 Million to Support U.S. Army’s Medical Communications for Combat Casualty Care — Press Release

General Dynamics Awarded $154 Million to Support U.S. Army’s Medical Communications for Combat Casualty Care

FAIRFAX, Va., Feb. 16 /PRNewswire-FirstCall/ — General Dynamics Information Technology, a business unit of General Dynamics (NYSE:GD) , has been awarded a task order to support the U.S. Army’s Program Executive Office, Enterprise Information Systems (PEO EIS), Medical Communications for Combat Casualty Care (MC4) Product Management Office (PMO). The task order is valued at $154 million over five years if all options are exercised.

General Dynamics will provide the full spectrum of pre-deployment, deployment, on-site, re-deployment and garrison support to MC4 PMO system activities at as well as worldwide training events, including combat areas and contingency operations use. General Dynamics also provides on-the-ground support for Operations Enduring and Iraqi Freedom with fielding, training and sustainment of MC4 medical information systems for tactical medical forces that have been deployed to serve warfighters.

“General Dynamics is proud of our partnership with the MC4 PMO for the past five years,” said Zannie Smith, senior vice president of General Dynamics Information Technology’s Army Solutions Division. “We will continue to support MC4′s vision for improved tactical healthcare and better decision making through the power of information technology. Our in-depth experience and thorough understanding of the program and its requirements enable us to promote, maintain and enhance the health and readiness of military personnel.”

MC4 integrates, fields and supports a comprehensive medical information system, enabling lifelong electronic medical records, streamlined medical logistics and enhanced situational awareness for Army tactical forces. Since 2003, MC4 has fielded 35,000 systems to combat support hospitals and deployable medical assets with the Army, Air Force, Navy and Army Special Operations Forces in 14 countries. More than 44,000 users, commanders and systems administrators have been trained through the program on how to use and support the system.

As a trusted systems integrator for more than 50 years, General Dynamics Information Technology provides information technology (IT), systems engineering, professional services and simulation and training to customers in the defense, intelligence, homeland security, health, federal civilian government and commercial sectors. With approximately 17,000 professionals worldwide, the company manages large-scale, mission-critical IT programs delivering IT services and enterprise solutions. More information about General Dynamics Information Technology is available at www.gdit.com.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 91,700 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at www.generaldynamics.com.

Source: General Dynamics Information Technology

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General Dynamics Awarded $154 Million to Support U.S. Army’s Medical Communications for Combat Casualty Care

February 16, 2010 by · Comment
Filed under: General Dynamics, Syndicated Industry News 
General Dynamics Awarded $154 Million to Support U.S. Army's Medical Communications for Combat Casualty Care
February 16, 2010

FAIRFAX, Va., -- General Dynamics Information Technology, a business unit of General Dynamics (NYSE: GD), has been awarded a task order to support the U.S. Army's Program Executive Office, Enterprise Information Systems (PEO EIS), Medical Communications for Combat Casualty Care (MC4) Product Management Office (PMO). The task order is valued at $154 million over five years if all options are exercised.
General Dynamics will provide the full spectrum of pre-deployment, deployment, on-site, re-deployment and garrison support to MC4 PMO system
activities at as well as worldwide training events, including combat areas and contingency operations use. General Dynamics also provides on-the-ground support for Operations Enduring and Iraqi Freedom with fielding, training and sustainment of MC4 medical information systems for tactical medical forces that have been deployed to serve warfighters.

"General Dynamics is proud of our partnership with the MC4 PMO for the past five years," said Zannie Smith, senior vice president of General Dynamics Information Technology's Army Solutions Division. "We will continue to support MC4's vision for improved tactical healthcare and better decision making through the power of information technology. Our in-depth experience and thorough understanding of the program and its requirements enable us to promote, maintain and enhance the health and readiness of military personnel."

MC4 integrates, fields and supports a comprehensive medical information system, enabling lifelong electronic medical records, streamlined medical logistics and enhanced situational awareness for Army tactical forces. Since 2003, MC4 has fielded 35,000 systems to combat support hospitals and deployable medical assets with the Army, Air Force, Navy and Army Special Operations Forces in 14 countries. More than 44,000 users, commanders and systems administrators have been trained through the program on how to use and support the system.

As a trusted systems integrator for more than 50 years, General Dynamics Information Technology provides information technology (IT), systems
engineering, professional services and simulation and training to customers in the defense, intelligence, homeland security, health, federal civilian government and commercial sectors. With approximately 17,000 professionals worldwide, the company manages large-scale, mission-critical IT programs delivering IT services and enterprise solutions.

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DOD Releases Defense Reviews, 2011 Budget Proposal, and 2010 War Funding Supplemental Request

DOD Releases Defense Reviews, 2011 Budget Proposal, and 2010 War Funding Supplemental Request - Update
Department of Defense
February 1, 2010

President Barack Obama today sent to Congress a proposed defense budget of $708 billion for fiscal 2011. The budget request for the Department of Defense (DoD) includes $549 billion in discretionary budget authority to fund base defense programs and $159 billion to support overseas contingency operations (OCO), primarily in Afghanistan and Iraq. This proposal continues the reform agenda established in last year's DoD budget request and builds on the initiatives identified by the 2010 Quadrennial Defense Review (QDR) and 2010 Ballistic Missile Defense Review (BMDR).

The QDR examines DoD strategies and priorities. It assesses the threats and challenges that the nation faces and re-balances DoD’s strategies, capabilities, and forces to ensure the U.S. military has the flexibility to address today’s conflicts and tomorrow’s threats. The BMDR evaluates the ballistic missile threat to the U.S. and its allies and articulates policy. It determines the appropriate role of ballistic missile defense in the country’s national security and military strategies.

“The fiscal 2011 budget request builds on the reforms begun in last year's defense budget,” said Defense Secretary Robert Gates. “These substantial changes to allocate defense dollars more wisely and reform the department’s processes were broadened and deepened by the analysis and conclusions contained in the Quadrennial Defense Review.”

The fiscal 2011 base budget request represents an increase of $18 billion over the $531 billion enacted for fiscal 2010. This is an increase of 3.4 percent, or 1.8 percent real growth after adjusting for inflation. The DoD needs modest real growth to maintain, train, and equip the forces that sustain our wartime efforts.

The fiscal 2011 OCO request will provide additional resources needed to sustain U.S. forces in Operation Enduring Freedom – in Afghanistan and elsewhere – and Operation Iraqi Freedom. Included are funds for pay and benefits, logistics and other support, force protection, continuing efforts to counteract improvised explosive devices, as well as funding to fully support the buildup in Afghanistan and to carry out a responsible drawdown in Iraq.

“The choices made and priorities set in these budget requests and strategic defense reviews reflect America's commitment to succeed in the wars we are in while making the investments necessary to prepare for threats on or beyond the horizon,” said Gates.

Also accompanying the 2011 budget proposal is a fiscal 2010 supplemental request of $33 billion to support the added costs of the President's new strategy in Afghanistan and strengthen U.S. force levels with approximately 30,000 additional troops.

“To make sure we have the resources needed to support our troops deploying to the Afghanistan theater, I will be asking the Congress to enact the supplemental by spring 2010,” said Gates.

Key highlights of the proposed DoD budget are outlined in the attached summary and charts. For more information and to view the entire fiscal 2011 budget proposal, please visit http://www.budget.mil and download the "FY 2011 Budget Request Overview Book."

The 2010 QDR and BMDR are available online at www.defense.gov/DefenseReviews.

Transcripts from applicable budget and strategic defense review briefings can also be viewed at www.defense.gov/transcripts.

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Fiscal Year 2011 Department of the Navy Budget Submission

February 2, 2010 by · Comment
Filed under: Syndicated Industry News 
NNS100201-24. Fiscal Year 2011 Department of the Navy Budget Submission
February 2, 2010

WASHINGTON (NNS) -- Department of the Navy (DoN) budget submission of $160.6 billion delivered today is consistent with the 2010 Quadrennial Defense Review, the basic tenets of the National Defense Strategy and the Maritime Strategy. The fiscal year (FY) 2011 baseline budget is a $4.6 billion, or 3 percent increase over the FY2010 level.

Navy and Marine Corps resources have been prioritized to prevail in today's wars, prevent and deter conflict in all domains, prepare for a wide range of contingencies and preserve the force.

Additionally, the FY 2011 request for overseas contingency operations (OCO) of $18.5 billion integrates sustained support for the warfighter. It includes incremental costs to sustain operations, manpower, equipment and infrastructure repair, as well as equipment replacement to support the focus on increasing threats.

The FY 2011 budget supports a deployable battle force of 284 ships including 11 aircraft carriers and 29 large amphibious ships. It also reflects a shift to support irregular warfare and includes funds for the littoral combat ship (LCS), expeditionary E/A-18G aircraft supporting national electronic warfare requirements, P-8 Maritime Patrol and Reconnaissance aircraft supporting increased emphasis on intelligence, surveillance and reconnaissance and a variety of unmanned aerial vehicles.

In the area of ship procurement, this budget funds nine new construction ships in FY2011 and 50 ships across the Future Years Defense Plan (FY 2011 through FY 2015)including two Virginia-class submarines per year, 17 LCSs, 8 DDG-51-class ships to continue the DDG-51 program restart, three new Mobile Landing Platforms, the first LHA(R) and the second Ford-class aircraft carrier.

In addition, aircraft procurement funds 206 airframes in FY 2011 and 1,006 airframes across the FYDP.

Navy Operation and Maintenance resources are increased to tightly focus on meeting increased combatant commander operational tempo requirements, properly sustaining and resetting ships and aircraft to reach expected service lives, restoring base budget enduring flight hour requirements previously funded with overseas contingency operations funding, and funding price increases, most notably in fuel.

Military and civilian basic pay is increased by 1.4 percent. Commitment to our investments in science and technology, cyberspace capabilities, facilities sustainment, base closure and family housing is maintained.

For more DoN FY11 budget information, visit http://www.finance.hq.navy.mil/fmb/11pres/books.htm

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Australia Continues Project To Automate Logistics

Australia’s Ministry of Defence awarded a follow on contract to Mincom to continue developing an automated, integrated logistics system. There was no value given for the contract. The contract is continue the work done so far for the Joint Project 2077.

This contract is for Phase 2B.2 which builds on the Phase 2B.1 where Mincom delivered the Military Integrated Logistics Information System (MILIS). The goal is for the Australian Defense Force (ADF) to have an system that supports all three services when they deploy for contingency operations overseas. Phase 2B.2 will complete in 2011 and will allow better control and tracking of supporting assets and build upon Phase 2B.1.

Automated logistics systems are becoming more-and-more sophisticated and allow better control, less waste and higher rates of supply and maintenance. For armed forces that are consistently deploying away from their central bases the better logistics control the higher the operational availability of equipment and the higher the capability.

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