U.S. Army Buys More Packs from BAE

BAE was awarded a contract to provide more MOLLE gear for the U.S. Army. The Modular Lightweight Load Carrying Equipment is a configurable system of different packs, pockets and so on that is the primary gear carrying system for the Army. MarketWatch.com has the press release. This $40 million contract is an option under a long term one worth up to $370 million if all options are exercised. BAE produces the components in a variety of U.S. locations.

T-45 logistics contract awarded by the Navy

Vertex, a subsidiary of L-3 Company, was awarded a contract to provide logistics support to the Navy’s fleet of T-45 training aircraft. The contract, if all options are awarded, is worth over $500 M. The T-45 is used by both the Navy and Air Force to provide jet training for their flight personnel. Boeing teamed with L-3 to provide the parts management. The military has turned to Contractor Logistics Support (CLS) for a variety of systems – ground and air – in a bid to lower costs. One of the major areas is that the Department of Defense does not need to invest in a large pool of spare parts; relying on the contractor to do that.

See the press release at MarketWatch.com.

DRS sells more generators

As part of a ID/IQ contract with DRS to buy generators the US Army ordered $91 M worth of options. The funding will purchase 5,000 Tactical Quiet Generators (TCG) in a variety of sizes. The generators have been in development since 1997 and DRS has delivered several thousand of them. Since the US Army is dependent for many things on reliable sources of electricity generators are important. In tactical situations generators tend to attract attention through their noise and infra-red signatures. Anything that can be done to reduce these signatures improves the survivability of forces.

For more see the press release at MarketWatch.com.

US Department of Defense contracts for dentists

The DoD awarded United Concordia Companies, Inc. a five year contract worth over $600 M contract to provide dental care for active duty US military members. The contract provides special dental services to US military who have access to a dental clinic on their base, or general services to those who do not. The contract also requires the company to track the dental health of the members to make sure that they meet deployment requirements. The US Military has over the last thirty years moved to out sourcing a great deal of their medical care for retirees, dependents and members due to the growth in requirements and cost.

See a press release at MarketWatch.com.

Solid quarter for Orbital

Orbital reported their third quarter results today. Revenues were up slightly while earnings were down. The company did report strong bookings and their back log is significant at over $2 B. The company saw increased activity in the launch vehicle and advanced space programs. There was a decline in satellites and space services. Orbital provides a variety of space related services to US DoD, Department of Energy and NASA.

See the full press release at MarketWatch.com.

Metal Storm continues to market in the US

The Army of the United States Association (AUSA) held their national convention last week. One of the key parts of this is exhibits by a large number of defense contractors, big and little. Metal Storm the Australian company that is developing rapid fire electronic gun systems attended. They have received some contracts with the US Military to work on their systems. Metal Storm uses multiple barrel system with a stack of ammunition in them. By firing electronically they can launch all of the ready rounds very quickly. Rates of fire for their larger systems are very impressive and their is a lot of potential for them. No nation yet has committed a large sum to buying these systems, which range in size from 9mm to 40mm; although it is probably scalable to larger rounds.

See the press release at MarketWatch.com.

Here is a link to the demonstration video they used at AUSA.

Unknown Middle Eastern country buys ammo

Allied Defense Group announced a contract with an unidentified Middle Eastern nation to provide 25 mm ammunition. This will be made by their Belgian subsidiary, MECAR. The contract is worth over $8 M and will deliver in 2009. With out any further identifying information it is hard to identify which nation bought this ammo.

See the press release at MarketWatch.com.

US Navy awards aircraft CLS contract

Rolls-Royce was awarded a contract to provide support to US Navy aircraft engines. It is worth about $90 M and could last five years if all options are provided. Rolls Royce makes the engine for the T-45 trainer used by the Navy and the Air Force. The CLS is called “Power by the Hour”, meaning service is provided based on the use of the engines by the aircraft. Each flight hour will cost so much for the maintenance.

For more see the press release at MarketWatch.com.

US Navy continues production of Fire Scout

The MQ-8 Fire Scout UAV made by Northorp Grumman for the Navy entered LRIP last year with a successful Milestone C decision. The Navy has continued production by executing the second year of Low Rate production. The Fire Scout lands and takes off vertically and can operate from the helicopter decks of Navy ship. The system will enter Technical Evaluation this year. The contract is worth over $32 M and is the second of three years of LRIP. Once LRIP and testing is complete the Navy will conduct a Full Rate Production decision to allow the Navy to buy larger quantities with a proven system. The US military has invested heavily in USV over the last ten years with some successes in Iraq and Afghanistan.

See the press release at MarketWatch.com

Army contracts for emergancy equipment certification

September 29, 2008 by Matthew Potter · Comment
Filed under: Contract Awards, SoBran, U.S. Army, logistics, medicine 

The US Army signed a five year contract with SoBran to provide testing and certification of chemical protection equipment. The work will be done at the Army’s Edgewood Chemical Biological Center. SoBran is a leading expert in design and engineering to defend against chemical and biological attacks. Under this contract they will test and certify breathing apparatus used to act in contaminated environments. While the threat moving from large scale types of attack on the battlefield to potential limited terrorist attacks there is still a need for this type of equipment.

See MarketWatch.com for the press release.

Oshkosh subs work for armor

September 26, 2008 by Matthew Potter · Comment
Filed under: ADSI, Contract Awards, U.S. Army, logistics, production program 

Oshkosh Corporation chose American Defense Systems, Inc. to be a supplier to them of armor and armored glass in support of a contract they won to build vehicles for the US military. The Interim High Mobility Engineering Excavator vehicles are being built for the US Army for service in Iraq and Afghanistan. ADSI fabricates, installs and provides engineering support for opaque armor, security doors, windows and curtains.

See the press release at MarketWatch.com.

US Joint Forces Command awards SETA contract

September 25, 2008 by Matthew Potter · Comment
Filed under: Contract Awards, SETA, USJFCOM, VMD 

VMD was awarded a SETA support contract by Headquarters USJFCOM. This is to provide program management, technical and financial support to the Command. The contract is for 5 years and could be worth over $21 M. USJFCOM is primarily based in the Hampton Roads area of Virginia, but also has offices in the Washington DC area. Work will be performed at these locations.

See the press release here on MarketWatch.com.

C-STAT marketing contract awarded

Western Solutions who are contracted to establish and run the Center for Security Training and Technology (C-STAT) have hired Total Security Services International, Inc. (TSSI) to promote and market the center. C-STAT will be located at Aberdeen Proving Ground (APG) to provide multi-hazard response training for companies as well as Federal, State and Local personnel. The TSSI contract also provides program support to C-STAT.

See the press release at MarketWarch.com.

Navy buys WMD defenses

The US Navy awarded Gryphon Technologies a contract to develop systems to protect against Weapons of Mass Destruction (WMD). The contract is worth over $35 M and is to provide engineering services and support of defensive equipment for WMD attacks. While the US Navy has designed chemical and nuclear protection into their ships, such as washdown systems designed to remove radioactive fallout and chemical systems, these defensive systems are probably more in support of personnel.

See the press release at Wall Street Journal MarketWatch.com.

Navistar gets logistic vehicle contracts

Navistar was awarded two contracts by the Army to provide tactical support vehicles. These include one contract for tankers to carry fuel, oil and water. The vehicles are for use in Iraq and Afghanistan. Navistar has won several contracts to provide these kind of vehicles. One would have to assume that over the past seven years the Army has used a lot of these vehicles beyond what the originally intended. They will require either replacement or recapitalization, where they are rebuilt and retrofitted to be like a new one.

See the press release at MarketWatch.com.

US Army continues CROWS production

Kongsberg received further work under the general CROWS contract. The Crew Remotely Operated Weapon System provides a way for soldiers to work sensors and weapons while staying under armor. Kongsberg makes parts of the overall system and this is a continuation of earlier contracts. The overall CROWS contract is worth over $1 B, and this contract has a value of over $200 M.

See The Wall Street Journal’s MarketWatch.com for more.

Marines buy more MRAP vehicles

The USMC awarded Navistar a contract to purchase more of their new, lighter vehicles. The contract is worth about $750 M and will buy 800 or so vehicles. The trend in recent MRAP buys has been to get smaller and less bulky vehicles for service in Iraq and Afghanistan. The Marines especially have cut back on MRAP buys and moved away from the original vehicles.

Navistar makes the MRAP in Mississippi and the press release can be found at The Wall Street Journal’s MarketWatch.com site here.

Navy to develop WMD simulator

The US Navy awarded Cubic Applications Inc a contract to begin development of a training simulator for Weapons of Mass Destruction (WMD) environments. The contract is worth up to about $16 M, with $2M executed to date. The Navy will ultimately end up with a system that can conduct repeatable training on a range. The contract is for development of a system as well as looking at future technologies that can support this type of training.

See the press release at the The Wall Street Journal’s MarketWatch.com site.

Arrests in Afghanistan contracting scandal

Two Air Force personnel and three Afghan nationals were arrested over charges that bribes were paid to win contracts for military construction in Afghanistan. Two of the Afghans also resided in the United States. Supposedly a bribe of $30,000 was paid to the US Air Force officials to win a $1 M construction contract in 2004. Another bribe was paid later to win a road contract. Several US military and civilian personnel have been arrested and charged with contract related corruption in Kuwait, Iraq and the United States. With the amount of money going to the efforts in Afghanistan and Iraq there is always a chance for such crime.

There is more at The Wall Street Journal’s MarketWatch.com site.

Army to buy more CH-47 aircraft

The Army awarded Boeing a 5 year contract for CH-47F cargo helicopters. The number procured is 181 with 10 options. There will also likely be some FMS sales from this contract. The CH-47F is the latest variant of the helicopter with sophisticated avionics and improved capabilities. 48 have been built to date. The CH-47F is one of the programs that was birthed from the Comanche termination. The others being the UH-60M, UH-72A and the JCA fixed wing aircraft. The CH-47F is especially effective in Afghanistan due to its high altitude and temperature capabilities.

To see the press release go to the Wall Street Journal’s MarketWatch here.

USMC buys wireless communications from TeleCommunications Systems

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.

The UK buys refit on their C-130s

L3 was awarded a contract by the UK’s Ministry of Defence to perform replacement of the outer wings of three C-130 aircraft. The contract is worth over $18 M. The actual work will be done in Canada. Like many European companies expanding in the US market; it also behooves US ones to work there. Especially with so much originally American equipment being used by the UK, Germany and other NATO countries.

For the actual press release see MarketWatch at the Wall Street Journal Digital Network.

ADG has a good quarter

Allied Defense Group announced their quarterly results. See a press release here. The company had a good second quarter with revenue and EPS up significantly. This was primarily driven by sales of ammunition and the contract to build a plant in Jordan.

Lockheed Martin to train intelligence analysts

Lockheed Martin was awarded a contract from the National Geospatial Intelligence Agency (NGIA) to provide training to its employees and other intelligence analysts across DoD. See a press release here. The contract has a value of $32 M and is an option on an existing contract. Lockheed Martin is responsible for running the in-house training for the agency. NGIA is what used to be called the Defense Mapping Agency (DMA) and provides maps, charts and other information to the US defense services and other agencies.

Lockheed Martin expands in Australia

Lockheed Martin has moved to buy a joint venture it had set up in Australia today. See a press release here. RLM Holdings was a company established by Lockheed Martin and the Tenix Group to manage the Jindalee Operational Radar Network (JORN) and provide other defense services. The JORN is a large array over-the-horizon surveillance system that can detect surface and aerial targets at very long range. RLM also manages other defense radar systems as well as providing services to the Australian defense forces. This acquisition will have to be approved by the Australian Government.

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