Still Some Support For Northrop

March 10, 2010 by Matthew Potter · Comment
Filed under: Boeing, Congress, EADS, KC-X, KC-X Tanker News, Northrop Grumman Corp., Syndicated Industry News 

Congressman Howard McKeon (R-CA) put out a statement today supporting Northrop. He said that he was “disappointed that Northrop Grumman has decided not to submit a proposal to build the Air Force’s next generation aerial refueling tanker.” He would like Northrop to reconsider its position.

Northrop is currently headquartered in California and has several thousand employees there. It is planning on moving to the Washington DC area in the near future.

The decision leaves Boeing as the sole announced bidder.

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MRAP-ATV Contract Spills Over To SCHOTT North America

October 21, 2009 by Matthew Potter · 1 Comment
Filed under: Business Line, Companies, Contract Awards, Department of Defense, Events, Oshkosh Truck Corp, Schott North America, Services, States, U.S. Army, logistics, production program 

Oshkosh Defense was awarded the contract to build the new Mine Resistant Ambush Protected – All Terrain Vehicle (MRAP-ATV) earlier this year for use in the rougher terrain of Afghanistan. Under this contract several thousand vehicles will be built for use by the Army, Marine Corps and other services. As with any contract of this size there will be large orders placed with the necessary sub-contractors.

For example Plasan in Vermont will provide armor plate for the vehicles as they have for other MRAP and up-armored trucks and HUMVEES. Now SCHOTT North America located in Indiana announced that they have received a contract from Oshkosh to provide armored glass for the MRAP-ATV.

The contract will be require over a hundred more workers to be hired and the company to invest about $7 million in their plants. This contract illustrates how large defense contracts while seemingly being awarded to only one company spread across the U.S. and foriegn suppliers as parts and components are produced.

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More MRAP-ATV Work For Vermont’s Plasan

September 28, 2009 by Matthew Potter · Comment
Filed under: Business Line, Congress, Contract Awards, Countries, Events, Israel, Plasan North America, Services, U.S. Army, Vermont, logistics, production program 

This Summer Oshkosh was awarded the new Mine Resistant Ambush Protected (MRAP) ATV contract to begin building new, lighter vehicles for use in Afghanistan. This is a multi-billion contract for several thousand of the lighter, more maneuverable vehicles. Obviously Oshkosh must then add awards to its suppliers.

One of the key ones is Plasan North America located in Vermont that builds armor plate for the new vehicle. Plasan is an Israeli based company that has expanded into the United States. The Israeli military has long experience with the kinds of vehicles like MRAP in their low level fighting in Lebanon, Gaza and the West Bank. As Oshkosh makes their contracted 4,000 vehicles Plasan will make armor for them. The company is planning to expand its plant and hire more people as work ramps up.

Of course like all military contracts it will end one day and that may lead to plant closings and lay offs unless other work can be found. This is what BAE Systems is facing in Sealy, TX after losing a truck contract. This unfortunately is what the military procurement system does as it only the ability to support so many procurement programs at once.

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MRAP-ATV Fallout Leads To Navistar Layoffs

July 13, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Contract Awards, Department of Defense, Events, Mississippi, Navistar, Restructuring, Services, production program 

Oshkosh won the MRAP-ATV contract for a new vehicle for use in Afghanistan. One of the losing bidders was Navistar who had sold several thousand MRAP vehicles for use in Iraq to the U.S. Department of Defense.

Now with the fact that they did not win the contract to build the new vehicles for use in Afghanistan the company has announced layoffs at their Mississippi plant. This illustrates one of the problems with defense contracting. If you don’t continue to win contracts to provide systems or services you will eventually wither. Defense acquisition is normally for a certain number of units or for a period of time that will end. Companies win or lose contracts and that leads to contractions or expansions in work forces.

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England Vacillating On Next Batch Of Eurofighters

June 11, 2009 by Matthew Potter · Comment
Filed under: BAE Systems, Business Line, Companies, Contract Additions, Contract Awards, Countries, England, Events, Germany, Military Aviation, Restructuring, Rolls-Royce, development program, production program 

Back in May we had written that England would go ahead with the full buy of the next order of Eurofighter Typhoon modern fighter aircraft. This was based on the fact that the costs associated with canceling the contract would be prohibitive. There was also some hope that part of the aircraft could be used to fulfill foriegn military sales rather then seeing service with the Royal Air Force.

Now it is reported that the deal may fall through after all. England like America is faced with economic problems that have led to massive borrowing and an attempt to spend their way out off the recession. This means that funds are limited and the cost of the new aircraft fairly prohibitive. Not only will there be the cost of breaking the contract but several thousand jobs related to building the aircraft may be lost. The government is trying to renegotiate the price or the fees in order to save some money but time is running out. Germany has restated their support for the program and an intent to go ahead and buy the latest batch.

When the original contract was signed England did not imagine that they would not have enough money. It was they who insisted on the strict and high fees if the contract was not followed through on in an attempt to keep the other countries involved from leaving. This had happened several times in the past when NATO and the U.S. joined on various development and procurement programs.

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DRS sells more generators

October 21, 2008 by Matthew Potter · Comment
Filed under: Contract Awards, DRS Technologies, U.S. Army, logistics, production program 

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.

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