Defense Solutions Holding Hits The Big Time

February 1, 2010 by Matthew Potter · 1 Comment
Filed under: Business Line, Companies, Countries, Defense Systems Holding, Iraq, Services, logistics, production program

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.

Tags: 60 million, business model, Contract Awards, defense contractor, defense contractors, foodstuffs, iraqi government, last thirty years, logistic support, reputation, support contracts

Navistar To Provide More Trucks To U.S. Army

November 10, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Contract Awards, Events, Mississippi, Navistar, Oshkosh Truck Corp, Services, U.S. Army, logistics, production program

The United States military has expended a great deal of logistics and support vehicles in Iraq and Afghanistan. These trucks have taken a beating both from heavy use and enemy attacks. The Army has let several contracts recently to repair, reset and replace them. Yesterday it was announced that Navistar would be awarded a contract to provide tanker trucks, wreckers and generic troop transport vehicles. The value of this contract is over $400 million.

Navistar was disappointed that it did not win a portion of the MRAP-ATV contract to provide the lighter vehicles for use in Afghanistan. That contract went to Oshkosh. This contract will offset some of the losses from not contributing to that effort. It also demonstrates that the U.S. has been able to grow a decent industrial base when it comes to logistic support vehicles.

Tags: afghanistan, Contract Awards, enemy attacks, logistic support, logistics, MRAP, Navistar, oshkosh, support vehicles, tanker trucks, transport vehicles, troop transport, united states military

Contractors Good For Something — Being A Force Mulitplier In Afghanistan

September 2, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Department of Defense, Events, IT, KBR, SETA, Services, U.S. Air Force, U.S. Army, U.S. Marine Corps, afghanistan, logistics, medicine

For the last eight years one of the biggest complaints from the American left was that George Bush was in the sway of big government contractors. They did too much of the housekeeping services in Iraq and Afghanistan. Companies like KBR lined their pockets at the expense of the troops and taxpayers. They were doing jobs that green suiters or civil servants should be doing.

Unfortunately due to the small size of the military they had to use contractors for those jobs. This has been a trend going back thirty years. Use contractors to wash clothes, cook food and clean latrines. Then there would be more soldiers freed up to do the fighting. Despite a consistent philosophy on the use of support contractors Bush received holy hell about it. True the scale in Iraq was much larger then it ever had been before and the contracts were in some case let quickly and didn’t have enough oversight but people were trying to get things done.

Now the word is that Obama wants to increase the number of foot soldiers in Afghanistan but without increasing the number of U.S. troops deployed to that country. One way to do this is to reduce the number of soldiers assigned to logistic support units, command headquarters, maintenance and so one and do a one-for-one swap with “trigger pullers”. How do you do this and still provide the enormous tail that U.S. forces need? Use contractors.

It might be possible to assign U.S. civil servants to do this but there have been many issues in the past with getting them to serve in Iraq and Afghanistan. It is too dangerous or not career enhancing. Certainly there is a number of people assigned or who volunteer for these positions but to get the kind of capability that is needed it will have to be contractors. Contractors like KBR or other such companies experienced in logistics and maintenance.

This will not be an easy or quick switch. The ground troops will have to be designated from either those in Iraq or in the U.S. recovering from a recent deployment. Then they will have to be trained and equipped up. A plan will be figured out how to deploy a 1000 support troops and replace them with a battalion of infantry. The support infrastructure will probably have to switch first. Contractors taking over for the rear echelon folks.

Another challenge will be writing and awarding the contracts for this. Unless they plan on expanding existing contracts there will be a several month period of writing the RFP, putting it out and evaluating the proposals. Awards may be protested which could add to the delays. Once awarded the contractors will have to hire their people and get them into place. Expect the almost constant sniping from Congress and the Media about this. See the LOGCAP contract from Iraq for example.

The Obama administration really cannot do anything else. They have reached the fish-or-cut-bait point. Either abandon Afghanistan or pour resources in. At the same time he does not want to “surge” troops there as that will make him and many Democrats look like idiots for opposing the same in Iraq. So he does the next best thing: surge contractors to maximize his troop availability. Good luck to them and the soldiers.

Cross posted at Inane Taskers

Tags: civil servants, command headquarters, consistent philosophy, foot soldiers, government contractors, holy hell, housekeeping services, logistic support, suiters, support contractors

Oshkosh Wins Another Contract

August 28, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Contract Awards, Events, Oshkosh Truck Corp, Services, U.S. Army, logistics, production program

Following up on its recent MRAP-ATV and heavy truck contracts Oshkosh announced that they have been awarded another contract to build Family of Medium Tactical Vehicle (FMTV) trucks and trailers. This contract is called the rebuy program. If all options are exercised over the next five years the contract could be worth up to $2.6 billion.

The initial order is for about $280 million worth of the vehicles. The rebuy seems to indicate that this contract is to begin replenishing the supply of the vehicles in the Army. The U.S. lost a great deal of vehicles in Iraq and Afghanistan to IED and mines. These were of all types including tanks, armored personnel carriers and logistic support vehicles like the FMTV.

Tags: armored personnel carriers, atv, Contract Awards, Contract Awards, fmtv, heavy truck, logistic support, next five years, oshkosh, support vehicles, tanks

9 billion euro contract for 112 Eurofighter Typhoons signed – Press Release

July 31, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Contract Additions, Contract Awards, Countries, England, Events, Germany, Italy, Military Aviation, Spain, production program

9 billion euro contract for 112 Eurofighter Typhoons signed

eurofighter-new NETMA (NATO Eurofighter and Tornado Management Agency), Eurofighter Jagdflugzeug GmbH and EUROJET Turbo GmbH signed today the production contract for a further 112 aircraft, including 241 engines, for the four partner Nations: Germany, Italy, Spain and the United Kingdom.

The Tranche 3.9 billion contract confirms Eurofighter Typhoon as the best selling defence aircraft on the market with 559 units under production contract, including 15 for Austria and 72 for Saudi Arabia.

Eurofighter Jagdflugzeug GmbH CEO Enzo Casolini commented: “This is a major achievement in the Eurofighter programme and serves to reaffirm the importance and the independence of the defence sector of the European industry. The agreement, achieved in conjunction with NETMA and the four Nations involved in the programme, will provide the Air Forces with the best asset available to address their requirements for both air-to-air and air-to-ground roles”.
EUROJET Managing Director Hartmut J. Tenter commented: “This is an outstanding success for the EUROJET programme and a clear signal to the international community endorsing the quality of the product. The EJ200 stands for leading-edge technology, including advanced integrated Health Monitoring to deliver class-leading reliability, maintainability and Through Life Cost—the benchmark of excellence”.

NETMA’s General Manager, Lt.Gen. Antonino Altorio remarked that “the capabilities of Tranche 3 aircraft consolidate the already excellent performances of Tranche 1 and 2 aircraft and will enable the Air Forces to carry out primary air defence in NATO missions as well as maintaining air superiority in theatres of operations and, if necessary, providing support in the air-to-ground role. This contract sets the baseline for consequent contracts for logistic support which is fundamental to keeping fleets available while reducing, significantly, the cost of in-service support”.

Today the Eurofighter programme not only represents the largest European industrial programme, supporting 100,000 jobs in 400 companies across Europe, but it is also the most advanced example of technology within the European industry base. It sets the standard in terms of best value for a new generation defence aircraft programme.

With the production of Eurofighter Typhoon, now being confirmed until well into the next decade, the future of the programme is assured and will maintain and develop the current technological capability in Europe, enhancing future export opportunities and giving the four partner Nations a significant return on their investments. Having already secured two export contracts with Austria in 2003 and the Kingdom of Saudi Arabia in 2007, Eurofighter Typhoon will continue to follow up all export opportunities.

NETMA

Eurofighter and Eurojet Turbo consortia and their partner Companies are actively pursuing campaigns in Switzerland, India, Japan, Romania, Greece, Turkey and exploring possible opportunities in South Korea, Bulgaria, Croatia and other Nations.

Background information:

Eurofighter Typhoon is the world’s most advanced new generation real multi-role/swing-role combat aircraft available on the market and has been ordered by six nations (Germany, Italy, Spain, United Kingdom, Austria and the Kingdom of Saudi Arabia). With 559 aircraft under
production contract, it is Europe’s largest military collaborative programme and delivers leadingedge technology, strengthening Europe’s aerospace industry in the global competitive market.
More than 100,000 jobs in 400 companies are secured by the programme. Eurofighter Jagdflugzeug GmbH manages the programme on behalf of the Eurofighter Partner Companies: Alenia Finmeccanica, BAE Systems, EADS CASA and EADS Deutschland, Europe’s foremost aerospace companies with a total turnover of approx. 88 billion Euros (2008).

The EUROJET consortium is responsible for the management of development, support and export of the new generation EJ200 engine system, installed in the Eurofighter Typhoon aircraft. EUROJET’s shareholders comprise Avio (Italy), ITP (Spain), MTU Aero Engines (Germany) and Rolls-Royce (UK). The EJ200 engine, with its unprecedented performance record combined with multi-role capability and highest availability at low life-cycle costs, is perfectly set to meet the air forces’ demands of today and the future.

NETMA was formed on 1 January 1996 by the merger of two previously separate NATO agencies which had been established to manage Tornado and Eurofighter (EF2000) programmes.

The Agency is responsible to the partner Nations (Germany, Italy, Spain and the United Kingdom) for all the aspects of the programme covering development, procurement and inservice support of Eurofighter and Tornado aircraft weapon systems. NETMA provides partner Nations with an efficient, effective and coherent management service for these two major international programmes.

High Resolution images of the Eurofighter Typhoon and of the EJ200 can be downloaded from the web sites: www.eurofighter.com/medialibrary and www.eurojet.eu

Photo courtesy of Eurofighter.com.

Tags: air defence, air forces, air superiority, antonino, clear signal, defence aircraft, defence sector, eurofighter typhoon, fleets, integrated health, leading edge technology, logistic support, maintainability, management agency, nato missions, netma, partner nations, production contract, Saudi Arabia, typhoons

Successful first operational NATO assessment of a Eurofighter Wing — Press Release

July 2, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Countries, EADS, Germany, Italy, Military Aviation, production program

Successful first operational NATO assessment of a Eurofighter Wing

Excellent results were achieved after the first operational evaluation made by NATO of a Eurofighter Typhoon Wing. A NATO evaluation team certified the Italian Air Force’s 4th Fighter Wing at the Grosseto Base as a NATO Quick Response Force.
This means that the 4th Wing becomes the first Eurofighter flight unit to obtain this important NATO certification.
The operational evaluation took place during the “Operation Discrete Jury” exercise, which tested the ability of the 4th Wing to be deployed abroad for peace-keeping and peace-making missions.

The exercise involved many air wings’ activities, from rescue to telecommunication services, self-defence and survival capabilities and, more particularly, logistic support, maintenance and flight operations. It was in this very field that the operations of the Grosseto Base’s Typhoons were positively evaluated, having demonstrated excellent operational availability and compliance with national and NATO’s operational requirement.

Enzo Casolini, Eurofighter CEO, said: “We are very pleased that the first Wing of Eurofighter Typhoon has achieved such an important goal. This clearly demonstrates the maturity of the Eurofighter programme as well as highlighting the capabilities of the aircraft and its operational availability which reached a very high level”.

The 4th Fighter Wing, together with the 5th Wing of Cervia, the 36th of Gioia del Colle and the 37th of Trapani, is one of the Italian Air Force units assigned to the control of Italian airspace 24 hours a day all year round.
Within the 4th Fighter Wing, the 20 Squadron is also active with its twin-seat Typhoons which are tasked with the “transition” of Italian pilots assigned to the Eurofighter Squadrons.

Tags: air wings, airspace, enzo, eurofighter typhoon, flight operations, flight unit, gioia del colle, italian air force, italian pilots, logistic support, operational availability, operational evaluation, operational requirement, peace keeping, quick response, response force, self defence, support maintenance, telecommunication services, typhoons

US Army Buys More Hunter UAV Systems

November 3, 2008 by Matthew Potter · Comment
Filed under: Contract Awards, Military Aviation, Northrop Grumman Corp., U.S. Army, development program, production program

The US Army awarded Northrop Grumman a contract valued at $97 M for Hunter Unmanned Aeriel Vehicles (UAV) and ground control stations. The Los Angeles Times reported on the order. Interestingly the article said that the systems were being procured through the “contractor logistic support 2008 contract”. Contractor Logistics Support is usually where a civilian company is paid to provide the maintenance and support for the system, rather then using organic military personnel and parts. It may be that the contract has both production and CLS lines on it.

Tags: cls, contractor logistics support, ground control, ground control stations, grumman, logistic support, los angeles times, military personnel, northrop grumman, Northrop Grumman Corp., U.S. Army, UAV

U.S. Air Force Awards Alenia North America Approximately $7 Million Logistics Support Contract for Afghan C-27/G.222

March 18, 2010 by Business Wire Defense: Contracts News · Comment
Filed under: Syndicated Industry News

WASHINGTON--(BUSINESS WIRE)--Alenia North America, a subsidiary of Alenia Aeronautica and part of the Finmeccanica Group has been awarded a contract by the U.S. Air Force (USAF) to provide logistic support and maintenance in Afghanistan for the C-27/G.222 aircraft currently being delivered for the Afghanistan National Army Air Corps (ANAAC). The $7 million contract provides for additional logistic support and maintenance for the program. The logistical support in Afghanistan is being conducted b