Press Release — Statement on US Refueling Tanker Program Announcement
Filed under: Alabama, Boeing, Congress, EADS, KC-X, KC-X Tanker News, Syndicated Industry News, Washington
Statement on US Refueling Tanker Program Announcement
WASHINGTON, March 9 /PRNewswire-USNewswire/ — The European Commission notes yesterday’s decision by Northrop Grumman / EADS not to submit a bid to the US Department of Defense for the US Air Force’s aerial refueling tanker contract.
“It is highly regrettable that a major potential supplier would feel unable to bid for a contract of this type. Open procurement markets guarantee better competition and better value for money for the taxpayer,” stated EU Trade Commissioner Karel De Gucht.
In February 2008, Northrop Grumman / EADS was selected and awarded the contract to provide aerial refueling tankers for the US Air Force in a fair and transparent competition. This was a positive sign for free and open competition across the Atlantic. This also seemed to indicate that successful bids are possible when European industry teams up with US industry and they are allowed to compete fairly. This award was subsequently cancelled at the end of 2008.
In December 2009, Northrop Grumman / EADS expressed serious concerns to the Department of Defense and the US Air Force on the proposed acquisition criteria for the contract.
The European Commission would be extremely concerned if it were to emerge that the terms of tender were such as to inhibit open competition for the contract.
The US defense trade balance with the EU has traditionally been significantly in the US’ favor. In 2008 the US exported $5 billion and imported only $2.2 billion worth of defense material, in line with a historic ratio of double exports to imports.
The Commission will be following further developments in this case very closely.
Source: Delegation of the European Union to the United States
ID Cards are Big Business
Filed under: Contract Awards, DLA, Department of Defense, IT, Telos Corporation, logistics
The US Department of Defense has over the last few years switched to a universal identification card, The Common Access Card (CAC) Card (sic). As its name implies it is common across DoD being used by the Services, for civilians and contractors. Most military bases require a CAC Card for access. MarketWatch.com reports that Telos Corporation has been awarded a $160 M contract to provide the consumables used to make the cards and track the government inventory of them. Read more
USAF Provides Long Lead Funding for More F-22
Filed under: Contract Additions, Contract Awards, Department of Defense, Federal Budget Process, Lockheed Martin, Military Aviation, U.S. Air Force, production program
The US Department of Defense awarded Lockheed-Martin a contract to begin buying long lead items for four more F-22 aircraft. The Associated Press reports. This funding will allow the production line to stay hot and will let the new, Obama administration decide whether to keep it going. The next step in the production of the aircraft would be to obligate another $140 M next year to continue construction of the aircraft. The current DoD leadership has been going back and forth on how many of the very expensive, but capable F-22’s to buy. Currently there are 183 under contract. Congress has the power to keep the line going through adding money to buy them even if an administration does not request them. Then it would be up to the President to veto the whole Defense Appropriations Bill; which rarely happens as there are items considered critical to running the DoD.
Wearable power competition proceeds
Filed under: DARPA, Department of Defense, development program, logistics
The US Department of Defense said that 20 teams have qualified for the Wearable Power competition that will be carried out over the next four days. The $1 M prize will be awarded to the team that best meets the requirements of providing 20 watts of power per hour for 96 hours and weighs less then 4 kilograms. The twenty teams were chosen after a review of their concepts for safety and to see if they could be attached to a standard vest. DoD is trying to develop an alternative to all the AA batteries soldiers are forced to carry to work their advanced electronics.
See the press release at DefenseLink.mil.
US announces Israeli JSF buy
Filed under: Contract Awards, Department of Defense, FMS, Israel, Lockheed Martin, Military Aviation, production program
The US Department of Defense announced that Israel has agreed to buy 25 F-35 Joint Strike Fighters (JSF) and support. The contract is worth about $15 B. While eight partner countries will also fly the JSF, Israel becomes the first FMS customer. The JSF will be a short take-off and landing aircraft to replace F-16 and AV-8 aircraft.
See the story at Rueters.com.
Reports that UAE to buy THAAD system
Filed under: Congress, Contract Awards, Department of Defense, FMS, Lockheed Martin, Raytheon, UAE, missile defense, production program

Update – I was wrong in my original surmising that the UAE would buy PATRIOT. They are going whole hog and asking for THAAD. THAAD is a much more expensive, long range ballistic missile defense system. The US Army has not formally fielded it yet. That would explain the high price tag. Rueters report here.
Rueters is reporting that the US Department of Defense will inform Congress that the UAE has asked to purchase a PATRIOT missile system. The estimated cost is $7 B. This would be to provide missile defense against Iranian systems. Congress must approve the sale, normally this is a formality, although it can be more complicated for advanced systems. Obviously such a large contract will be a boon to Raytheon and Lockheed Martin.
The article is here.
DoD awards shelter task order contract
Filed under: Contract Awards, Department of Defense, logistics, production program
The US Department of Defense awarded a task order contract for tents and shelters. See this article. Under the contract the qualified companies, including Johnson Outdoors and Schutt Industries, can bid on the various service and other Government agencies requirements. The contract is a one year base with four options with an initial value of $96 M. With these contracts there is no guarantee that any work will be awarded, but the best bid on the various orders will be accepted.
Bio-Clean International Affiliate Wins New Contract with US Defense Logistics Agency
Filed under: Syndicated Industry News
Bio-Clean International Affiliate Wins New Contract with NAVAIR
Filed under: Syndicated Industry News
GP Strategies’ Operating Subsidiary Awarded Contract to Provide Learning Management System Support to Defense Security Service
Filed under: Syndicated Industry News
IDGA Announces 2010 NCW Awards™ Call for Nominations
Filed under: Syndicated Industry News



