In-sourcing v. Outsourcing: A Tale of Two Countries

February 18, 2010 by Matthew Potter · Comment
Filed under: BNET 

Great Britain and the United States have chosen two different paths to try and save money in their defense spending. Britain is privatizing more…

F-35 Program Has Issues DCMA Says

The F-35 Joint Strike Fighter (JSF) has become the aviation program in the Obama defense budget. This multi-variant, multi-service aircraft will be the only new tactical aircraft built in the United States for several years now that the F-22 Raptor was canceled in the 2010 budget. In fact Secretary of Defense Robert Gates wanted to speed up production and testing of the aircraft in order to replace the aging F-15 and F-16 fleet more quickly.

Earlier this summer there were reports that a review panel had found the potential for delays and cost growth in the program that would seriously affect the plans for the aircraft. Yesterday there were reports that the Defense Contract Management Agency (DCMA) has been reporting that the program is facing production and test delays as well as having cost issues. DCMA monitors contractors for performance and delivery and reportedly Lockheed Martin and its supporting contractors are already behind on the latest schedule established in May, 2008.

When the budget was announced with the decision to cancel the F-22 and focus on the F-35 some doubts were raised that the plan would work out. The schedule was not firm enough and cost was still being worked out for the three different aircraft being developed for the U.S. and its Allies. The F-35 if unit costs do rise significantly could see lower annual buy quantities which stretches out production and extends the time the older aircraft must be flying. While it is certainly possible that the schedule problems may be overcome delays and cost increases will undermine the reasoning behind the whole proposed Obama aviation modernization budget. This report may give Congress pause and interest in re-starting the F-22 production.

Pomerleau To Build New Facility For C-130 Training

canada new c130j facility contractThe Canadian government has invested in several C-130J transports from Lockheed Martin. These are to improve their tactical and operational mobility. The aircraft are to be built in the United States but the contract has significant offset requirements so that Lockheed will have to spend money in Canada. As part of their plans to stimulate the economy due to the global recession Canada also planned to invest in defense infrastructure and this kind of project is the kind of thing that they proposed doing.

The Ontario based company Pomerleau, Inc received a contract worth about $40 million Canadian to build the facilities to support C-130J aircrew and maintenance training at the Trenton. The hanger based facility will be completed in 2012.

The U.S. military has been able to utilize some of the stimulus bill money from Congress to build or rehabilitate facilities. These seem to be the kind of project that will generate jobs and investment in the local economy. At the same time like Canada they are getting an enhanced capability.

http://www.flickr.com/photos/httpblogsinacomcnhomeofbeijingpeople/ / CC BY-ND 2.0

Napolitano stresses shared responsibility

September 30, 2009 by admin · Comment
Filed under: Syndicated Industry News 

WASHINGTON, Sept. 30 (UPI) -- Department of Homeland Security Secretary Janet Napolitano said shared responsibility contributes to the resiliency and security of the United States.

Singapore seeks F-16 training

September 29, 2009 by admin · Comment
Filed under: Syndicated Industry News 

SINGAPORE, Sept. 29 (UPI) -- Singapore's air force is considering training F-16 pilots in the United States.

Japan Facing Industrial Base Issues

September 21, 2009 by Matthew Potter · Comment
Filed under: BNET 
Japan's defense industrial base is facing severe declines due to lack of spending on the military over the last several years. The United States...

Pakistan to make its own drones

August 31, 2009 by admin · Comment
Filed under: Syndicated Industry News 

ISLAMABAD, Pakistan, Aug. 31 (UPI) -- Pakistan, which has been seeking drone technology from the United States, has decided to make the pilotless plane on its own for its air force.

Canada, U.K. join ID fraud fight, U.S. to follow soon

August 24, 2009 by admin · Comment
Filed under: Syndicated Industry News 

OTTAWA, Aug. 24 (UPI) -- Canada, Australia and Britain have teamed up to share biometric and fingerprint information about suspected criminals and will soon be joined by the United States and New Zealand.

England Continues Plan To Privatize Military Training

August 18, 2009 by Matthew Potter · Comment
Filed under: BNET 
August 18, 2009 -- The United Kingdom’s military is much smaller then the United States and as a force multiplier they have moved to maximize the privatization...

India Releases Helicopter Requests For Proposals

India has released this week two separate Requests for Proposals (RFP) for new helicopters. The first one is to purchase twenty-two advanced attack helicopters. The second for fifteen heavy lift aircraft. India faces many of the same problems that the Allied forces in Afghanistan do because of the high, hot environments that aircraft must fly in.

The country had released a RFP last year for attack helicopters but withdrew after receiving non-responsive bids. India has looked at major upgrades to its armed forces by broadening the base of whom they buy from. Rather then relying primarily on Russian or British equipment Israel and the United States have begun to make inroads into the market. India also had invested heavily in domestic development and production but to get more technology faster has started buying overseas in greater amounts.

With the new proposals Boeing is considering a bid for each. They make the AH-64 Apache and CH-47 Chinook both heavily used in Afghanistan by the U.S. and Allies. Boeing is also looking at taking major hits in the Obama budget and will try to counter that with sales overseas.

U.S. Company Receives FAA Certification For Russian Tanker Aircraft

il76Tactical Air Defense Services announced that the FAA certified their Illyushin IL-78 “Midas” tanker aircraft for use in the United States. The IL-72 and IL-76 transports and the IL-78 tanker variant have served the Soviet and Russian military for years successfully.

Due to the world’s shortage of heavy lift transport aircraft various Russian companies have made a living out of leasing their Antanov and Illyushin aircraft to support non-American Western military in their deployments and operations. This includes moving troops and supplies to Iraq and Afghanistan. For modern ground operations this kind of support is critical and there are only so many C-17 and C-5 aircraft to go around.

It only make sense that this would spread to use in the United States. The company intends to use the aircraft to support training operations as well as firefighting. There are certainly opportunities for both missions as the U.S. Air Force tanker fleet is also stretched as it waits for the KC-X contract to get going again.

Photo from jamesdale10 Flickr stream.

Japan Buys Eurocopters for Training

In the first contract that Eurocopter has been able to win from the Japanese military it will provide two EC-135 twin engine aircraft for training. EasyBourse.com reports that there is the potential for 13 more aircraft to be purchased. Eurocopter has been able to sell civil aircraft in Japan for over four decades but has not been able to switch the nation over to non-American products. The EC-135 helicopters will provide training for naval pilots in the Japanese Maritime Self Defense Force. The joint French-German company has made major gains in sales since its formation in the United States and other countries that had not been its traditional customers. The EC-135 has proved popular with medical transport, police as well as other civil and government users. More on the aircraft can be found here.

Menlo Worldwide Government Services Uses One Network Product for Defense Material Movement

One Network announced that their product, Transportation and Logistics Network, is being utilized by Menlo Worldwide to support their efforts with the U.S. Transportation Command (USTRANSCOM) to manage movement of material via commercial means in the United States. Fox Business News has the press release here. Menlo Worldwide through its use of this software has been able to meet or exceed USTRANSCOM’s goals for this program.

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.

Military Contractors Report Strong Quarterly Earnings

March 28, 2008 by admin · Comment
Filed under: Northrop Grumman Corp., Syndicated Industry News 
Profits at the aerospace and military contractors Lockheed Martin and Northrop Grumman climbed in the third quarter on strong sales of jet fighters, submarines and mail-sorting machines, the companies said yesterday.

Americans Give President Obama Negative Ratings on Handling of 12 Issues

ROCHESTER, N.Y.--(BUSINESS WIRE)--As President Obama’s overall job approval remains just barely positive, when presented with a list of twelve issues he is currently facing, the American public believes that the job he is doing on all 12 of them is negative. The one that is closest to an even split among adults is reducing the threat of terrorist attacks against the United States where just over half of Americans (51%) give the president negative ratings and 49% give him positive ratings.

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Deltek Clarity ’09 Event for Government Contractors a Resounding Success

HERNDON, Va.--(BUSINESS WIRE)--Deltek, Inc. (Nasdaq: PROJ), the leading provider of enterprise applications software for project-focused businesses, recently concluded its first annual Clarity event where the findings from one of the industry’s largest surveys of the government contracting marketplace were unveiled. Hundreds of professionals from government contractors across the United States joined Deltek and many of its partners to hear the results from a comprehensive government contra

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