Navy to develop WMD simulator
Filed under: Contract Awards, Cubic, U.S. Navy, development program, logistics, training
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
Filed under: Contract Awards, Justice Department, U.S. Air Force, crime, logistics
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
Filed under: Boeing, Contract Awards, Military Aviation, U.S. Army, production program
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
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.
The UK buys refit on their C-130s
Filed under: Contract Awards, England, L-3, Military Aviation, logistics, production program
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
Filed under: Allied Defense Group, Earnings, logistics, production program
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
Filed under: Contract Awards, Lockheed Martin, NGIA, logistics, space, training
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
Filed under: Acquisitions, Australia, IT, RLM Holdings, Tenix Group, logistics
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.
Army buys more FLIR systems for force protection
Filed under: Contract Awards, FLIR, U.S. Army, production program
The US Army awarded FLIR Systems a $30 M contract for more systems to support ground based force protection systems. See a press release here. FLIR Systems has long built sensors for aircraft but recently the US has invested in this technology for the monitoring of perimeters and base security. FLIR Systems has won several contracts and options for this type of equipment while continuing its success with aviation systems.
DoD awards TRICARE omnibus contract
Filed under: Contract Awards, Department of Defense, General Dynamics, IT, logistics, medicine
General Dynamics was one 23 companies awarded a possible right to get work under a large ID/IQ contract for planning and support. See a press release here. The contract if all options are exercised could be worth up to $5 B. Like all of these contracts, though, there is no guarantee that any company will get work, or that any will actually be exercised. This contract again demonstrates that DoD is paying a great deal of money to support its soldiers, retirees and dependents.
LMT reports earnings
Lockheed Martin continued the string of defense contractors reporting good earnings as the rest of the economy struggles. See a press release here. Lockheed had a 13% increase in profit over the last year with a solid increase in earnings. The company also is starting to sound cautious about the expected downturn if the Democrats win the White House in November. Even if the defense budget is cut dramatically it will take a few years for the effects to be felt within the suppliers.
First MUOS groundstation installed
Filed under: General Dynamics, IT, Satellites, U.S. Air Force, development program, space
General Dynamics as part of the Mobile User Objective System (MUOS) satellite base communication network installed the antennas for the first of four groundstations. See a press release here. MUOS will provide a cell phone like communication system through satellites. It will eventually have four ground stations with the first being in Hawaii. This system continues the US focus on upgrading communications through more use of satellites.
C-17 FMS buy
Filed under: Boeing, Contract Awards, FMS, Military Aviation, Qatar, production program
Boeing will continue the C-17 production line for a few more years. See a press release here. No details of how many aircraft or contract value were provided. Boeing is on contract for 190 C-17s for the USAF, of which 175 have been delivered. 15 more were just placed on contract as part of the FY08 Defense Supplemental bill. Boeing had been seeing the end of the production line with the finishing of USAF and foreign orders. Depending on the size of the Qatar order it may extend the line for some time.
US buys batteries
Filed under: Contract Awards, DLA, Saft, logistics, production program
The Defense Logistics Agency (DLA) signed a contract with SAFT for batteries. See the press release here. While SAFT is a French company the batteries will be made in NC at their plant. The contract is for up to 5 years and could be worth $170 M. With the amount of electronics proliferating on the battlefield, battery technology is very important as the US and other countries strive for lighter batteries that provide more power.
DoD invests in automated medical diagnostic equipment
Filed under: CombiMatrix, Contract Awards, Department of Defense, IT, development program, logistics, medicine
CombiMatrix received a contract from DoD to continue development of hand-held diagnostic equipment for use in the field. See the press release here. The contract is worth over $900 K. DoD as well as other government agencies are evaluating products based on CombiMatrix’s systems to detect bacteriological and chemical systems. This contract builds upon those earlier efforts.
Boeing to bid on India’s new fighter
Filed under: Boeing, India, Military Aviation, production program
Boeing confirmed that they will submit a proposal to India for a new fighter. See the story here. Boeing will bid the F/A-18 against competition from Russia, Sweden, France, the UK and Lockheed Martin. The contract is for 126 aircraft, and if Boeing won would be a major coup for them, because as we previously wrote here their defense business is declining.
Former NY contractor convicted of price fixing
Filed under: Contract Awards, Peck & Hale, crime, logistics, production program
The US Attorney in Long Island has got a former company to plead guilty to price fixing. The news story can be found here. The company, Peck & Hale, manufactured tie downs and other gear to secure cargo on ships, aircraft and vehicles. This is part of an ongoing investigation into several companies involved in this business. Peck & Hale employees pleaded guilty to colluding with the other companies to fix the prices they would propose and ultimately get from the services.
Air Force awards KC-X to team of Northrop Grumman and EADS
Filed under: Boeing, Contract Awards, EADS, Military Aviation, Northrop Grumman Corp., U.S. Air Force, commercial aviation, logistics, production program
The Air Force announced today that the Northrop Grumman and EADS team won the KC-X contract. News story is here. This is a huge decision and marks a major change in US defense policy. Read more
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