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Despite Concerns About Lockheed’s Future Earnings Company Wins JIEDDO Contract

On the same day that the Standard & Poor’s (S&P) lowered its outlook on U.S. defense contractor Lockheed Martin (LMT) to negative the company also announced a large contract to support the U.S. Defense Department’s anti-Improvised Explosive Device (IED) efforts.

The company was awarded one of five contracts to provide Operations Support to the Joint Improvised Explosive Device Defeat Organization (JIEDDO). The contract is an Indefinite Delivery / Indefinite Quantity (ID/IQ)one that could have a value of up to $900 million depending how the tasks area awarded. The initial contract is for two years with three option years.

The JIEDDO was established by DoD to focus efforts on defeating the mine and IED threat in Iraq and Afghanistan which became the primary method of attack and caused a great deal of casualties. The JIEDDO has focused on technical means to detect and disable IED’s including advanced detection and jamming.

The contract with Lockheed is focused on the operational part of JIEDDO mission with operations, analysis, combat and IT support for JIEDDO’s analytical team.

There has been concern expressed by many in the financial community that the stocks of the large defense contractors will suffer with the proposed reduction in U.S. spending. This will have a negative effect on their revenue and earnings. Of course the cuts may not happen or be as large as discussed. Also major acquisition programs like the F-35 JSF or ship construction will most likely see reductions in quantity rather then outright cancellation. This should cushion the blow to defense contractors.

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Contract Fraud is Universal as Mitsubishi Electric Hit with Ban

The issue of fraud, waste and abuse has been a constant in defense contracting since the first piece of equipment was sold to a soldier. It could be rotten food in the Civil War, poorly made weapons or just simple overcharging or substituting inferior work for what the contract requires. Even in this day of lawyers, strong contracts, inspections and high technology these issues still occur as people look for ways to get more money out of their customers. In Japan the second largest defense contractor, Mitsubishi Electric (TSE) is now facing a ban for falsely inflating contract costs.

Reportedly not only the defense ministry has suspended the company but also the Japan Aerospace Exploration Agency (JAXA) and the Cabinet Satellite Intelligence Center will also stop doing business with Mitsubishi Electric. The company is making different things related to the country’s space program for JAXA and developing a intelligence satellite for the Intelligence Center.

The company has been found artificially increasing the number of workers and hours billed for on a contract to produce the Type 03 surface-to-air missile. This is a vehicle mounted system that uses IR and radar guidance and reportedly has a range of about 50,000 meters.

In 2010 Mitsubishi Electric was working on over $1.5 billion in contracts for Japan making missiles, electronics and other equipment. The suspension currently means that it cannot get new work. A further inspection of other contracts is expected to begin in the near term.

The suspension is it last a significant length of time will affect the company as it will limit opportunities for new work. The company may also see it paying money back to the government and fines and charges that could affect the bottom line. Long term it will have to remain as a viable contractor for Japan due to the type of work it does and the requirements of the armed forces. Unfortunately in this time of very few defense contractors it is hard to ban or suspend permanently any one company.

Japan has not been immune to these problems. In 2010 the Japanese Air Self-Defense Force who most likely contracted for the Type 03 was investigated and many officers and officials charged with bid rigging and bribery. Bribes were being used to steer contracts for office equipment and supplies to preferred vendors.

These cases illustrate that when large amounts of money are involved there is a great deal of temptation to try and make profit and get rich off of it in ways that short change the customer, tax payer and the user.

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Raytheon Hopes to Put U.S. Missiles on India’s New Fighter

As the contest to choose India’s newest fighter begins its final stages with a decision expected sometime before the New Year the discussion of ancillary contracts has begun to heat up. The decision is now between two European contenders, France’s Dassault Rafael and the Eurofighter Typhoon, with the U.S begin shut out despite bids from Lockheed Martin (LMT) and Boeing (BA).

Even so there are now reports that the U.S. defense contractor, Raytheon (RTN), is working to make sure that whomever wins the contract for over 100 modern fighters they have the ability to equip it with their missiles.

Due to contraction in the U.S. defense industry Raytheon has become the primary manufacturer of air-to-air missiles as well as many different types of ground attack and strike systems. In this it competes with European companies like Mistral and BAE Systems (BAE:LSE).

Based on reports the company is hoping that India will choose the AIM-120 AMRAAM as a potential air-to-air system. The AMRAAM was developed over twenty years ago as a replacement for the AIM-7 Sparrow radar guided system. Raytheon also makes the AIM-9X infra-red guided system. The AIM-120 has been sold to a variety of customers and has been integrated onto non-U.S. aircraft.

The Massachusetts based company also makes different guided bombs and missiles that India could consider. This includes the Paveway laser guided system or the Joint Stand Off Weapon (JSOW). The U.S. could also sell India the Joint Direct Attack Munition (JDAM) which adds a GPS guidance unit to different sized bombs. Raytheon also makes the Minature Air Launched Decoy (MALD) system which could be used by India to protect their aircraft.

Once the major award is announced for the multi-billion procurement of the aircraft then the various equipment and support contracts will follow. This does offer an opportunity for the U.S. defense contractors shut out from selling the primary aircraft to get some of the work associated with the system.

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Defense Contractor Earnings Continue to Be Steady

Several of the larger U.S. defense contractors released their quarterly statements this week and so far the trend has been to remain steady or show growth. As of now the planned reduction in U.S. defense spending has not yet seriously affected their performance but many expressed concerns with future plans and trends in the industry.

Lockheed Martin (LMT) saw an increase in profit compared to last year’s quarter of almost 25%. Profit was $700 million on revenues of $12.1 billion compared to the previous $560 million. The company though had a charge of almost $40 million related to cuts in its workforce.

Lockheed also expressed concerns with statements by the Pentagon that in the next batch of production F-35 Joint Strike Fighter that it should share in some of the costs caused by design changes related to testing results. This would be a major change in how defense procurements are normally done and could open up Lockheed for a large amount of liability and cost. The company and some in Congress have been meeting with Defense Department officials to push back on the idea of shared liability.

General Dynamics (GD) reported a slight increase in profits to $1.80 a share up ten cents from last year. This was on lower revenues of $7.85 billion compared to $8. GD expects for the year to deliver $7.15-$7.20 a share in earnings. The company like all of the other large contractors will continue plans to lower costs and shed employees over the next year to position itself for cuts in spending.

Northrop Grumman (NOC) also had an increase in profits. They were up 4.6% to $1.86 a share on slightly lower revenue of $6.61 billion. The growth was due to sales at their electronic systems segment as aerospace systems and information systems were lower. The company does expect overall earnings for the year to be higher then previously stated at $6.95-$7.05 a share. Northrop also saw pension impacts affect their earnings related to eliminating some jobs. Northrop had earlier this year spun off their naval systems business into Huntington Ingalls Industries (HII) which reduced revenue substantially.

Boeing (BA) also did well beating analyst estimates by 36 cents at $1.46 a share. Boeing’s net income was over a billion dollars an increase of almost $260 million compared to last quarter on sales of $17.7 billion. Boeing is different from other defense contractors in that 50% or more of their business is commercial aviation. This earnings report was dominated by discussion of the 787 airliner which has just started deliveries and service with airlines. Boeing delivered more jets this quarter then last and has sold out almost 8 years of 787 production. Boeing too will look at reducing overhead and cost structure on their defense side in order to compete in what is expected to be a tight market.

So far earnings by defense contractors have yet to see the effects of the end of fighting in Iraq, plans to draw down Afghanistan and expected cuts in defense spending. Although the 2012 budget has yet to be finished it is expected to be flat. The Government is already making decisions on ending programs such as radios, missiles and potentially vehicle systems. Next year may not be so good and 2013 might be much worse. All of the companies are looking at their costs and how to deal with a Defense Department that is pushing initiatives to reduce prices and risk in acquisition programs. As illustrated by the F-35 the contractors will only do so much to absorb this risk and the related costs.

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Waste, Fraud and the Federal Budget

Some of the issues that are going to be faced by Congress and its “Super Committee” when it comes to reforming Federal spending are those of waste and corruption. Governments spend a lot of money each year on everything from salaries, aircraft, social programs and even muffins. This leads to those who want a piece of the money without necessarily working for it or providing what is required. It also means that without layers of expensive audits and review which do exist there is always a chance the money is not spent correctly or properly. As The Washington Post once said (perhaps apocryphally) “The Government doesn’t buy things efficiently but ethically.”

Some recent cases only highlight the issues faced by procurement and contracting officials. One that got a great deal of publicity was an Inspector General’s investigation of conference costs from the Department of Justice. Their analysis found hotels charging the agency $16 for a muffin. Now of course it turns out the hotel invoiced improperly but it still looks bad that the government at this time of large deficits would be spending money on such items. The result, predictably, is another layer of review and approval for conferences.

Another issue that is more important due to the amount was that the Government is unable to track its retired work force properly and this has led to payments of over $120 million a year to deceased persons. Sometimes this is due to fraud by the relatives of employees but most of the time it is because they don’t know that person is dead. Now $120 million in a budget of $3.5 trillion is a small amount but again it illustrates how hard tracking all of the expenditures is.

Then there is just outright contractor greed and crime. There are lots of ways for corrupt companies and Federal employees to take advantage of the procurement business.

Two recent examples illustrate this problem. In the first a small defense contractor has been charged with paying bribes to two contracting officials to get them to award his company a contract for a security vehicle to be used in Afghanistan. The bribes only totaled $20,000.00 and the contract was for $200,000.00. Reportedly they all knew each other from service together in the Army. Then to make it worse he didn’t deliver the product. Direct bribes like this are not common and the Federal government has been cracking down on this in the last few years. In 2010 the Justice Department got a settlement from the British defense contractor BAE Systems (BAE:LSE) for bribes to gain a major Saudi contract. There have been other recent cases involving KBR (KBR) and the Dutch company Siemens as well.

In another example a company in Alabama paid a settlement with the Justice Department over charges that it pretended to be located in a Historically Underutilized Business Zone (HUBZONE) when it was not to gain a competitive advantage. HUBZONE’s are for areas, predominantly minority, that haven’t received a great deal of Federal contracts. To spur investment in these areas the Government weights contract evaluations or sets aside contracts for these companies to help them gain work. The company here said its offices were in the HUBZONE when they were actually located in a nearby major office park. The company was able to win a set aside contract through this deceit.

The Federal and State Governments have a great deal of programs like this to help disadvantaged groups and companies. These include special programs for businesses owned by Native Americans, minorities and women. There is a temptation to take advantage of these to gain work by companies that shouldn’t qualify. For smaller business one or two contract may make a big difference in their bottom line and the compensation of their executives which leads to temptation. The chance of audit and review seem low leading to these cases.

When you are spending billions each year it can sometimes be hard to keep track of the little things. This is one of the reason there is fraud and waste with government spending. The Government needs to do a better job of following their spending and the contractors they use. At the same time layers of review and regulation may not fix the problems. Another way would be to reduce the number of special and set aside programs to limit temptation. This would also improve the ability to award contracts in a timely fashion. Every layer of review and audits delays processing of the contract and payment of the contractor.

As the Federal Government shrinks spending there will be more cases of fraud and crime as the temptation for contractors to keep the work they have and fight over the smaller pie of contracts will increase. That means companies will potentially use bribes, falsified status or other means to win them. The Government will also have to do a better job of eliminating problems to maximize the value of their remaining dollars. There will be a whole sale shift in some practices in theory such as eliminating things like conferences and travel in order to economize. Changes such as this will take time and to be honest may never happen leading to more deficit spending and waste.

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SAIC Winning Contracts for Physical Security

The United States military and government needs to protect a variety of sites in Afghanistan in Iraq. These include embassy facilities, administrative sites, airbases, forward posts as well as resupply points. They have heavily invested in physical security systems including traditional items such as fortifications, x-ray systems for vehicles, as well as more high tech surveillance systems. One company that has a foothold in that market is defense contractor SAIC (SAI).

SAIC has recently been awarded multiple contracts dealing with security both to provide it and to develop new systems and methods. These have not only been for use in overseas locations but also in the United States as the U.S. has also worked on enhancing the security of their facilities here.

Earlier this week the Army gave SAIC a contract modification to continue to provide maintenance and sustainment of vehicle and cargo inspection equipment. This is worth about $44 million and work will take place not only in the U.S. but also Afghanistan and Iraq.

The Army also awarded under an existing contract a modification to purchase two complete “outpost surveillance and force protection systems”. This is an $8 million contract and no locations of the installation sites were provided.

The Air Force also purchased physical security system from SAIC. This will be installed at Tinker Air Force Base in Oklahoma. SAIC is part of that service’s Electronic Systems Center’s Force Protection Security System (FPS2) contract. Under the award SAIC will also provide one years logistical support for the system.

Finally, a SAIC subsidiary, Science, Engineering and Technology Corporation (SET), a contract to purchase a portable system that could detect “suicide bombers” at a distance. That contract is worth over $48 million. The system detects potential bombers and then uses radar to analyze the target looking for returns that might indicate explosives. Over 40 of the systems have already been deployed.

The United States spends a great deal of money on protecting its personnel and assets. SAIC has obviously found work in that market sector. As long as the U.S. is involved overseas and there is a terrorist threat in the U.S. this kind of work will exist and funding will be available for these efforts. SAIC will continue to benefit from that.

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India Goes With Western Europe in Fighter Contest

The Indian government has taken a step further in their ongoing contest to choose a new fighter for their military by down selecting to only two of the six bidders for the advanced aircraft contract. In a surprising move the two selected to go on were France’s Dassault Rafael and the Eurofighter’s consortium’s Typhoon.

This meant that the U.S. defense contractor’s Boeing (BA) and Lockheed Martin (LMT) who were trying to win the deal were cut out of the final selection process. This decision was a disappointment to the U.S. government who have been hoping to expand sales to the growing Indian market.

Many companies have been looking to the Indian market to offset potential declines in the U.S. and European defense budgets. The Indian contract along with the now delayed Brazilian one are two of the largest available in the near term.

That does not mean India has not bought from America. They have purchased several P-8I maritime patrol aircraft from Boeing and are potentially buying the C-17 transport aircraft. The decision, though, to move out with an American fighter would have indicated a desire to broaden their market and given hope to the U.S. defense contractors.

Photo from Shandchem’s flickr photostream.

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U.K. Orders Thales’ New Air Launched Attack Missile

As the United States military moves out with its Hellfire replacement in the form of the Joint Air-to-Ground Missile (JAGM) which is just about to enter into the Engineering, Manufacturing and Development (EMD) phase the United Kingdom ordered from European defense contractor Thales (TCFP:PA) a new missile to arm some of their helicopters. Thale’s new Lightweight Multirole Missile (LMM) received a production contract for 1000 missiles.

The contract provides for the final testing and qualification of the missile and then integration on at least the Lynx helicopter platform. The contract is the culmination of a three year development effort for the company. Similar to the JAGM the LMM has the ability to use multiple modes for its guidance including laser beam-riding or semi-active laser where the missile homes in on reflected energy. The missile also offers different warhead options like the current version of the Hellfire which has seen heavy use by the U.S. in Afghanistan and Iraq.

The contract with the U.K. will see two years of development and qualification leading to delivery of the first missile in 2013. The version that will be used by the Royal Navy on their helicopters at least initially will be the beam riding version.

The LMM as it’s name indicates is small having a weight of under thirty pounds and a maximum range of 8,000 meters. The Hellfire and JAGM are much bigger and have a longer range but it is expected that the LMM will be cheaper to procure. The LMM is a natural evolution of Thales’ work with air-to-air and surface-to-air missiles as it tries to enter a new market for air launched, attack missiles.

Advances in guidance technology over the last fifteen to twenty years have led to smaller, more accurate systems that allow the use of lighter weigh warheads allowing aircraft to carry more weapons.

Photo from johan weiland’s flickr photostream.

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Orbit International Corp. Announces $800,000 Order for Displays for CVN 78 Super Carrier

December 27, 2010 by · Comment
Filed under: Syndicated Industry News 

HAUPPAUGE, N.Y.–(BUSINESS WIRE)–Orbit International Corp. (NASDAQ: ORBT), an electronics manufacturer and software solution provider, today announced that it received an order for approximately $800,000 for displays from a leading defense contractor for the Machine Control System for the U.S. Navy’s CVN 78 class of super aircraft carriers. This order combined with approximately $1,300,000 of aggregate orders received earlier this year brings total awards for this program to approximately $2.1



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ITT Winding Down SINCGARS Production

For the last thirty years the standard radio for the U.S. armed forces and many of its allies has been based around the Single Channel Ground and Airborne Radio System (SINCGARS) VHF system. This radio began production in the Eighties and while multiple companies have made it the original developer and company that has made thousands of them is ITT Corporation (ITT).

As with all defense contracts at some point the military has bought all that they need or want. New systems get developed that will replace them when they enter service so ultimately production will complete and the defense contractor will lose a product line. That is what is happening now with the SINGCARS.

Unfortunately for the workforce ITT does not have a similar product to replace the radio and there are now going to be layoffs at their plant in Fort Wayne, IN where the radios are assembled. The last contract was for 58,000 systems and was awarded in 2009. The plant overall has assembled over 500,000 of the radios.

The U.S. has been working on a new comprehensive radio suite called Joint Tactical Radio System (JTRS) now for almost fifteen years and parts of that program are now starting to go into production. ITT will certainly have the ability to bid for work on that program.

Photo courtesy of Ryan Somma flickr photostream.

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Ultralife Corporation Receives $5.5 Million Land Warrior Battery and Charging System Contract

December 7, 2010 by · Comment
Filed under: Syndicated Industry News 

NEWARK, N.Y.–(BUSINESS WIRE)–Ultralife Corporation (NASDAQ: ULBI) has received a contract valued at approximately $5.5 million to supply its suite of Land Warrior Lithium non-rechargeable batteries and rechargeable Lithium Ion batteries and charging systems from a major international defense contractor for use with the Land 200 Battle Management System by the Australian military. Deliveries are expected to begin in the first quarter of 2011 and be completed by the fourth quarter of 2012. “Our



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Coast Guard Orders fourth National Security Cutter from Northrop Grumman

Despite their potential plans to exit the shipbuilding business as well as moving ahead with closing some of their existing shipyards Northrop Grumman (NOC) still is receiving contracts for new ships. This is on top of their existing work refitting U.S. Navy aircraft carriers and other ships as well as participating in the building of amphibious ships and destroyers.

The latest contract they received was from the U.S. Coast Guard who ordered the fourth National Security Cutter (NSC) from the company. This contract is worth almost five hundred million dollars. So far two of the ships have been delivered with a third under construction.

The National Security or Legend class cutter is one of the new ships, aircraft and other systems that the U.S.C.G. included in their Deepwater System program to provide major upgrades to their capability. They are large ships with comprehensive electronic systems and have high speed and long range to enable them to patrol a larger area more efficiently.

Northrop has used the NSC hull and design as the basis for a rapidly available frigate design offered to the U.S. Navy. This would be used to support the Littoral Combat Ships (LCS) under construction by General Dynamics (GD) and Lockheed Martin (LMT).

The U.S. demand for combat ships is being reduced and further budget pressure may reduce them even more. This has led Northrop to discuss exiting the shipbuilding business completely. There have already been companies offering to buy the capability but the large defense contractor has yet to move on the sale.

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U.S. Aerospace, Inc. Statement on KC-X Tanker Bid

October 20, 2010 by · Comment
Filed under: Syndicated Industry News 

LOS ANGELES–(BUSINESS WIRE)–U.S. Aerospace, Inc. (OTCBB: USAE), a U.S. aerospace and defense contractor, is pleased to issue the following statement concerning its joint bid for the U.S. Air Force KC-X Tanker Program. After comprehensive discussions of the Government Accountability Office’s decision, including the advise of counsel that there are substantial legal grounds to proceed in court, the Company has determined that it will not continue to pursue its bid to supply the U.S. Air Force wi



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AVIC International Holding Corporation Invites U.S. Aerospace, Inc. To Airshow China 2010

October 14, 2010 by · Comment
Filed under: Syndicated Industry News 

LOS ANGELES–(BUSINESS WIRE)–U.S. Aerospace, Inc. (OTCBB: USAE), a U.S. aerospace and defense contractor, today announced that Supply Chain Management & Procurement of AVIC International Holding Corporation has invited the Company to attend the Eighth China International Aviation and Aerospace Exhibition, known as Airshow China 2010, held in Zhuhai City of Guangdong Province from Nov. 16 to Nov. 21, 2010. Jim Worsham, CEO of U.S. Aerospace, Inc. commented: “We look forward to attending Airs



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U.S. Aerospace, Inc. Releases CEOLive Interview with CEO Jim Worsham

October 11, 2010 by · Comment
Filed under: Syndicated Industry News 

LOS ANGELES–(BUSINESS WIRE)–U.S. Aerospace, Inc. (OTCBB: USAE), a U.S. aerospace and defense contractor, today posted a CEOLive video interview with Jim Worsham, Chief Executive Office of U.S. Aerospace. This video interview is part of an ongoing series that will feature key members of the Company’s Executive Team and Board of Directors addressing topics related to the aerospace industry and the Company’s business operations and strategy. To access the video interview please visit the U.S. Aer



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U.S. Aerospace Receives Notice from GAO

October 6, 2010 by · Comment
Filed under: Syndicated Industry News 

LOS ANGELES–(BUSINESS WIRE)–U.S. Aerospace, Inc. (OTCBB:USAE), a U.S. aerospace and defense contractor, today reported the Government Accountability Office (GAO) has denied Company’s bid protest in connection with the KC-X Tanker Modernization Project. “We would like to thank the U.S. Air Force for providing us with the opportunity to bid, and the GAO for its review of the materials and circumstances which led to its decision,” said Director Michael Goldberg. “While we are disappointed with th



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Kongsberg Continues Sales to U.S. Defense Market

Kongsberg is a Norwegian defense contractor that sells products across the world. One of the their most successful systems has been components of the U.S. military’s CROWS system. The Crew Remotely Operated Weapon System allows a turret or other weapon mount to be operated from within a vehicle so the gunner does not need to expose themselves. As part of the U.S. reaction to the Improvised Explosive Device (IED) threat in Iraq and Afghanistan the CROWS was installed on HUMVEES, Strykers and other U.S. crew transport vehicles.

Kongsberg has executed several sub-contracts with companies that provide parts or assemble armored vehicles for the U.S. Kongsberg has done so well with this that they have a factory in Pennsylvania for building the components. In 2009 the company received almost a billion dollars worth of contracts as part of the multi-billion CROWS program.

Now they have been awarded more work. This contract is worth about $18.5 million. The sub-contract is with General Dynamics (GD) and supports installation on US. Army Stryker vehicles. GD makes the Stryker and it is based on a system they have made for years for Canada’s military.

The world’s defense spending is large and the ability to have a niche product like this has done very well for Kongsberg.

Photo from The U.S. Army’s Flickr Photostream.

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U.S. Aerospace, Inc. to Bid on Military Transport Aircraft for New Zealand

July 27, 2010 by · Comment
Filed under: Syndicated Industry News 

LOS ANGELES–(BUSINESS WIRE)–U.S. Aerospace, Inc. (OTCBB: USAE), a U.S. aerospace and defense contractor, today announced that it has submitted to the Defence Minister of New Zealand notice of the Company’s intent to bid to supply maritime surveillance and military transport aircraft. The requirements under this proposal will be outlined in the country’s defence review document, a White Paper due to be released in September 2010. “U.S. Aerospace, Inc. is pleased to present New Zealand with a co



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J&J Worldwide Wins Commissary Contract

J&J Worldwide Services of Texas was awarded a contract by the Defense Commissary Agency to operate and maintain thirty-one commissaries at U.S. military facilities on the East Coast. The contract has a value of up to $100 million. J&J has already won several contracts to support DoD medical facilities so the expansion into other housekeeping services like this is a natural progression.

Commissaries provide grocery and supermarket services on-base to U.S. military personnel, their dependents and retirees. They are one of the core benefits of the military as they provide competitive prices sales tax free. While with many parts of traditional military benefits they have suffered due to the massive movement of troops off of base into the civilian economy they are still operated worldwide.

J&J Worldwide is a growing defense contractor that is exploiting its niche in providing these kind of services.

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Winding Down In Iraq Costs Cubic

February 10, 2010 by · Comment
Filed under: BNET 

Cubic Corporation (CUB) a mid-sized defense contractor announced their recent quarterly results. Due to the end of contract in Iraq which was not…

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Defense Solutions Holding Hits The Big Time

There are lots of little defense contractors who are started by people wanting more then just working for another company. They usually start with one or two small sub-contracts and work to establish a reputation or an opportunity to bid as a prime on a larger contract. This business model has been highly successful for the last thirty years. Of course for every company that makes it several do not.

The small defense contractor, Defense Solutions Holding, Inc, has had some luck in winning logistic support contracts in Iraq and other countries. Revenue in 2009 was on track to be under $2 million. They just announced that they have won a contract to provide foodstuffs to the Iraqi Government in a deal worth over $60 million if all options are exercised.

This is a major growth for a company this size and illustrates well how the business can work.

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Kuchera Group Goes Softly Into The Night

January 22, 2010 by · Comment
Filed under: BNET 

Congressman John Murtha (D-PA) has been investigated for his ties to The Kuchera Group. A medium sized defense contractor in Johnstown, PA who he…

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Is QinetiQ The Bellweather For Smaller Defense Contractors?

January 19, 2010 by · Comment
Filed under: BNET 

Two years ago QinetiQ (UK:QQ) was one of the darlings of the defense contractor world. A new, aggressive company formed from privatizing parts of…

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Health IT Attracting Defense Contractors As Harris Buys Into It

November 23, 2009 by · Comment
Filed under: BNET, Syndicated Industry News 

Harris Corporation a well known defense contractor who primarily makes radios is moving into the health care IT business through acquisition of…

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Russia Invests In Sukhoi Aircraft

The Russian Federation signed a contract worth over $2.5 billion dollars to purchase sixty-four advanced Sukhoi aircraft. The contract will purchase forty-eight SU-35S, twelve SU-27M and four SU-30M2 aircraft. The contract was so important that Prime Minister Validimir Putin himself announced it.

This is the largest public contract since the fall of the Soviet Union and will lay the foundation for the modern Russian Air Force. In order to complete the deal by 2015 the Russian government is granting Sukhoi money as well as providing financing to begin the production.

Sukhoi has had some success in selling these aircraft to foriegn countries and like every other major defense contractor hopes to do more of such business.

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