Framework Seems To Have Been Reached To Allow A400M Resolution
Filed under: Business Line, Companies, Countries, EADS, Events, France, Germany, Military Aviation, Restructuring, Services, development program, logistics
Late last week it was announced that EADS and the customers for the A400M transport seemed to have reached a framework to allow talks to proceed that may resolve the funding issues with the program. Due to about two years of development and integration problems the aircraft only achieved first flight in December, 2009 and now will not deliver the first aircraft until 2012. These have caused EADS and its subsidiary Airbus to spend billions beyond the money planned.
The company is trying to work a deal where the customers pay a large portion of the overruns as the initial contract was a Fixed Price one that did not provide enough funding to cover the delays. EADS has spent over five billion Euros of its own money on the program and is hoping that either through price increases or direct investment the seven major European buyers will cover these costs. Recently EADS had threatened to just go ahead and end work on the program and eat the losses rather then continuing it and losing more money.
After a recent meeting it became clear that most of the countries involved are willing to work out some financial deal with EADS and that company will agree to continue talking. There will be a meeting in early February to begin these discussions. The compromise being discussed would see increased production prices and lower quantities for a few years with EADS absorbing some of the cost overruns internally. Then there would have to be a decision point in the future whether to complete the program’s planned total quantity. One of the two FMS customers, South Africa, already canceled their order due to the price increases proposed by EADS.
The A400M is the premier military aerospace program in Europe and it suffered from the optimistic plan to use a fixed price development contract. Not completing it would be seen as a blow to EADS and European defense integration. At the same time all of the customers are facing financial pressure due to the global downturn and increased social spending. At the same time building only a few of the aircraft solves nobody’s problems.
A400M first flight video from signatoryvideos. http://www.youtube.com/watch?v=oX-kIUYRyDk
England Awards Initial Contract For Combined Training Site
Filed under: Business Line, Companies, Contract Awards, Countries, England, Events, QinetiQ, logistics, training
The English government has ambitious plans to not only centralize their technical training but also privatize it. The goal is to save money within the defense budget. The consortium that is planned to construct and operate the new training site was awarded an initial contract worth almost $60 million to begin site preparation. The Metrix consortium which includes the British company QinetiQ will use this contract to move an existing Royal Air Force (RAF) school and begin demolition of existing buildings. Eventually the total program will be worth billions as the schools are established and classes taught.
The idea is fairly novel and controversial. In the United States for example they are moving away from contractor provided services by insourcing positions to civil service. They believe that this will save money in the long run. It will be interesting to compare how these two different paths work out over the next few decades.
Morocco Completes F-16 Order
Filed under: Business Line, Companies, Contract Awards, Countries, Events, Lockheed Martin, Military Aviation, production program
Two years ago the North African nation of Morocco selected the F-16 Fighting Falcon to be the basis of their new fighter force. They awarded an initial contract in 2008 for the twenty-four aircraft to Lockheed Martin. Now they announced the rest of the money will be paid. The total contract is worth over a billion dollars with the bulk, $840 million, executed this week.
The F-16 serves with many NATO and other U.S. allies as well as Egypt and Israel. Lockheed Martin continues to sell and build the aircraft for overseas sales despite the plans of the U.S. and many other countries to replace or at least supplement it with the F-35 JSF.
Northrop To Provide Laser Targeting Systems To The U.S. Army
Filed under: Business Line, Companies, Contract Awards, Events, IT, Northrop Grumman Corp., Services, U.S. Army, development program, production program
The U.S. Army awarded Northrop a contract to build lightweight laser targeting systems. These will be mounted on a variety of weapon systems. The initial contract is worth about $73 million but if all options are exercised it could generate over $600 million in revenue. The company has been making these types of systems since 2002.
The U.S. military has invested a great deal of money into these kind of systems providing a technical advantage over their adversaries. They not only provide the ability to detect and classify enemy in low or bad visibility but can be used to guide different weapons. These types of systems are fully integrated and are able to provide information to other Army systems and units via digital communications.
Government Moves Out On Controversial Bio-warfare Facility
The U.S. Government awarded the initial contract to begin construction of the new National Bio and Agro-Defense Facility (NBAF) in Kansas. This...Air Force Begins New Space Tracking System
Filed under: Australia, Business Line, Companies, Contract Awards, Countries, Events, IT, Military Aviation, Northrop Grumman Corp., S&T, Satellites, Services, U.S. Air Force, United States, development program, missile defense, production program, space
The United States Air Force awarded Northrop Grumman a contract to begin development of a ground based radar to conduct surveillance of space objects. The initial contract is worth about $30 million. The current Air Force system was installed back in the early Sixties.
The need for an upgrade to this capability has become more critical in recent years as the amount of near earth objects, space junk and satellites has increased. This system while primarily used to support missions in space will also provide some aid in missile defense. Identifying and tracking space junk will allow better detection of new objects including possible missile launches. The proliferation of objects has also affected launches and operations in space as the threat of collision to manned vehicles is especially dangerous.
Army Moves To Build New Generators
Filed under: Business Line, Companies, Contract Awards, Events, Fidelity Technologies, Pennsylvia, Services, States, U.S. Army, development program, logistics
Due to grounding issues generators provided by KBR led to the accidental deaths of several soldiers in Iraq as they went to take showers. The generators were powering hot water systems. The Army went ahead and designed new systems that are larger and have more sophisticated circuitry to prevent these issues. By centralizing power generation more fuel is saved as well as less individual generators are used.
Fidelity Technologies of Pennsylvania has begun to ramp up to produce these generators. The initial contract is for about $24 million and will produce over three thousand of the generators. In order to meet this new order the company is actually hiring personnel.
This shows that as programs end others start. Different priorities allow companies to move into niches that may not have existed before. This allows new business lines to develop and grow. Unfortunately the boom-or-bust nature of U.S. defense procurement can make this difficult for sustained growth or stability.
Wave Dispersion Technologies, Inc. Signs Partnership Agreement with Abu Dhabi’s International Golden Group, Initial Value in excess of $100 million USD – Press Release
Filed under: Business Line, Contract Awards, Countries, Events, Press Releases, UAE, production program
Also WhisprWave® Floating Security Barrier Solutions (FSB’s) Deployed for the Protection of Critical Maritime Infrastructure in UAE
Abu Dhabi, UAE, Summit, NJ, March 2, 2009 – Wave Dispersion Technologies, Inc. (WDT) and International Golden Group (IGG) have entered into a strategic partnership agreement for the provision of Floating Security Barriers (FSB) / Vessel Exclusion Barriers (VEB) to be installed at critical maritime infrastructure sites in the UAE encompassing oil, gas, power generation, and desalination facilities.
The contract covers 3 years, including the initial contract period with options, and has a value of USD $100 million, if all options are exercised and performance incentives are achieved. The initial production of the contract is being manufactured in Norfolk, VA, USA. The contract provides that WDT will utilize its WhisprWaveÒ Technology to ultimately manufacture FSB components locally in the UAE and provide related maritime services in support of the protective systems.
The initial phase of this agreement is to undertake a pilot project at one of the critical maritime infrastructure sites in Abu Dhabi. Following a successful pilot project with security issues achieved as planned, the partnership agreement will be extended to cover other critical maritime infrastructure sites within the UAE.
The FSB is designed with inherent flexibility to provide a platform that enables the addition of CCTV, Radar, Sonar, Anti-Swimmer Detection and Anti-Intrusion Detection Systems. Moreover, the system will act as a limited wave attenuator and with the addition of an attached oil boom will limit the affected area of oil spills.
According to Mr. Fadil Al Kaabi, CEO of IGG, “This partnership represents a great example of the cooperation between the UAE and USA in sharing technology and expertise to help secure our critical national maritime infrastructure. We look forward to working with WDT to further market this technology throughout the Middle East.”
According to Dennis G. Smith, CEO of WDT, “WDT has successfully marketed and installed its WhisprWaveÒ Technology in the USA, and elsewhere, but this agreement represents a true extension and prime example of cooperation by the USA to meet the UAE’s need for cutting edge technologies and foresight to proactively protect its critical maritime infrastructure. We look forward to a long and prosperous relationship with IGG.”
About Wave Dispersion Technologies, Inc.:
http://www.whisprwave.com/ – The Global Leader in Maritime Homeland Port Security Barrier & Buoy Protection Systems
Wave Dispersion Technologies, Inc. (WDT) has developed the patented WhisprWave® floating articulated breakwater technology to afford erosion control protection to shoreline beaches, coastal marinas, anchorages, and other areas subject to destructive erosive wave / wake forces. In addition the WhisprWave® security barrier designs are currently installed, being demonstrated or being reviewed by many US Government Agencies and Foreign Sovereigns including but not limited to the US Army Corp of Engineers “USACE”, US Navy “USN”, US Coast Guard “USCG”, US Army “USA”, USMC MEF Iraq, US Bureau of Reclamation “USBR”, UAE CNIA, NAOC, and other clients for applications that range from Homeland Security / Force Protection to Beach Erosion Protection to Marina Wave & Wake Protection.
WhisprWave® breakwater technology has wide ranging maritime applications from erosion control to homeland security. The Company has been developing the technology for over 10 years and holds 9 Domestic and International Patents for the WhisprWave®’s unique design and utility, with an additional 23 patents pending.
WDT is a Listed Featured Private Company on http://www.homelanddefensestocks.com/, http://www.borderandportsecurity.com and the Investor Ideas Home page http://www.investorideas.com/
About International Golden Group:
International Golden Group LLC is a well established company in Abu Dhabi-UAE specialized in providing High-end Security & Defense Solutions with an excellent reputation in the UAE and Gulf market.
IGG has entered into long-term strategic business alliances with other local and international companies relying on a professional team of highly dedicated and experienced personnel along with a worldwide network of agents and affiliates committed to providing high- level services to its customers.
Through the implementation of the latest advanced technology, IGG is now capable to supply a variety of military, security, civilian and COTS products and technical solutions for various purposes related to the security needs of its clients.
International Golden Group LLC has positioned itself to become soon a first-class manufacturer of special products for the local and regional defense markets.
Contact:
Managing Director
Jonathan B. Smith
248-229-9010
jbsmith@whisprwave.com
Media / Investors:
Dawn Van Zant, dvanzant@HomelandDefenseStocks.com
www.HomelandDefenseStocks.com, Investorideas.com
Source: Wave Dispersion Technologies, Inc
French Senators Discuss A400M Termination
Filed under: Business Line, Companies, Countries, EADS, Events, France, Military Aviation, commercial aviation, development program, logistics, production program
We have written in the past about the struggles EADS has had with the A400M program. Now CNNMoney.com reports that the French Senate has released a report about the program. The report continues the negative drumbeat about the delays to the delivery schedule, but continues support for the program. One Senator involved though said it might be cheaper to end the program and start afresh. The initial contract does allow the French government, as well as those others buying the aircraft, to end their support for the program and actually have EADS pay back any investment into it. This would amount to a loss of this over two-and-a-half billion Euros to EADS. If the program fails the plan would be to buy C-17 and C-130 aircraft from America which would be somewhat humiliating for the European Union.
USCG Cutter Contract Protested
Filed under: Contract Awards, Protest, U.S. Dept. of Homeland Security, production program
One of the losing bidders on a contract to build new cutters for the US Coast Guard, Marinette Marine, protested the award to Bollinger Shipyards for a new class of small ships the Milwaukee Journal-Sentinel reports.. The initial contract is for $80 M and will begin a program that might see up to 34 ships procured. This program arose out of a failed attempt to upgrade existing USCG ships by extending the hull and adding capability. Bollinger was heavily involved in that program, and some feel that the past performance there should have disqualified them from participating in this contract. Marinette Marine has previously built other ships for the USCG as well. The Government Accountability Office (GAO) has 100 days to rule on the protest. Normally the contract is put on hold while the protest is resolved.
USMC buys wireless communications from TeleCommunications Systems
Filed under: Contract Awards, IT, TCS, U.S. Marine Corps, logistics, production program
The USMC exercised a contract with TeleCommunications Systems to buy their Wireless Point-to-Point Link (WPPL) system to support deployed forces. The initial contract is worth about $3 M, but the company hopes to grow this through options to a total of $70 M by 2011. The WPPL System provides network and communication wireless capability to support maintenance and logistic activities. It is able to use line-of-sight and non line-of-sight capabilities to do this.
For more see the press release at the Wall Street Journal’s MarketWatch.com.
Seattle Times’ Analysis of Boeing Contract Win
Filed under: Boeing, Northrop Grumman Corp., Protest, U.S. Air Force
In this article entitled Boeing Wins Tanker Protest, But Drama Is Far From Over, the Seattle Times states:
The saga of the Air Force refueling tanker contract is not over by a long shot, though Boeing won a huge victory Wednesday when the Government Accountability Office (GAO) comprehensively backed the company’s protest of the initial contract award.
Read the original article here.
Army Selects L-3 for Kuwait Training Contract
Filed under: Syndicated Industry News
Ducommun Announces Award of $2.3 Million Electromechanical Assembly Contract with Raytheon
Filed under: Syndicated Industry News
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