Kuwait Buys AH-64 CLS
Filed under: Contract Awards, Dyncorp, FMS, Kuwait, Military Aviation, U.S. Army, logistics
The US Army awarded DynCorp a contract to support the AH-64 Apache attack helicopters operated by Kuwait. MarketWatch has the press release here. The CLS contract is worth $11 M in the first year. Kuwait purchased a small number of these advanced aircraft through the US Army. DynCorp has other contracts with both the US and Kuwait governments to perform this type of work on other aircraft. Use of CLS, especially for non-combat systems, has been growing in the US and UK as it is considered cheaper as you do not have the associated personnel and training costs of using service personnel. Of course, CLS in support of FMS systems is also common as it is the simplest way for the nations to get the support they need for advanced weapons.
Bush administration rushing to complete overseas sales
Filed under: Congress, Contract Awards, Department of Defense, FMS, Federal Budget Process, Military Aviation, Proposal, logistics
According to an article in the International Herald Tribune; the Bush administration is moving quickly to ok deals for foriegn partners on US weapon systems. The Pentagon plays a role in organizing and having Congress approve these deals. There has been a rash of equipment for Iraq and Afghanistan lately as well for former Soviet and Eastern Europe states. This is seen as building good will with them, as well as counteracting other nation’s attempts to sell weapons. The deals also help out US contractors.
See the article here.
India steadily increases defense spending
Filed under: England, India, Military Aviation, S&T, development program, logistics, production program
The headline on this article in the Daily Telegraph is a little misleading once you read it. India is on a path to more then double defense spending in the next twenty years, where it will be higher then the current UK’s budget. For India to exceed Britain’s budget it would take the UK holding spending steady, and actually adjusted for inflation, reducing it. It is certainly possible to imagine that the UK, and the US for that matter, may have to reduce spending as the budgetary reality catches up to them regarding the cost of social services and deficit spending. The other point of the story the money that India is putting into updating and modernizing their military by moving to buying advanced Western weapons rather then relying on Russian and indigenous producers is probably more important then the amount of spending.
The article by David Blair and Thomas Harding can be found here.
US Army continues CROWS production
Filed under: Contract Awards, Konsberg, Norway, U.S. Army, production program
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.
BRAC money flows to Huntsville
Filed under: BL Harbert International, BRAC, Congress, Contract Awards, Federal Budget Process, U.S. Army, logistics
B.L. Harbert International won the contract to build two new building complexes at Redstone Arsenal (RSA) as part of the last round of BRAC moves. See a press release here. BRAC was good to RSA as it moved the headquarters of the US Army Material Command (AMC) and the US Army Security Assistance Command (USACA) to the base. AMC is responsible for buying, fielding and supporting most of the Army’s material. USACA helps transfer US weapons to foreign countries. The $100 M plus contract will build the necessary buildings to house the commands.
FN reiterates desire for M4 contract
Filed under: Belgium, Contract Awards, U.S. Army, production program
This article describes the FN plant in South Carolina. FN makes M16, M240 and other weapons for the US military there. FN has been expanding the plant steadily over the last few years and is waiting for the biggest prize in the US small arms business - next years M4 competition. Currently Colt makes all of the M4 carbines and has since the Nineties. There have been many complaints about its performance and even if FN won the contract many of the design issues could not be fixed without going to a whole new weapon. The contest next year will be interesting.
FN moves to compete with Colt
Filed under: Contract Awards, Proposal, U.S. Army, production program
Slowly over the last several years, FN, the Belgian small arms manufacturer has been expanding its US operations. They have developed several NATO standard weapons that have been adopted by the US military - such as the M249 SAW and the M240 LMG. Now, according to this article, they plan to bid on the next M4 contract. The M4, and Colt, have had issues since 9/11. There are many complaints about the weapon and its jamming in dusty environments. The US Special Forces have adopted a separate weapon, the SCAR, and have also looked at 6.8 mm rifles. There have also been issues with how the US Army has managed the contracts for the M4. It will make for an interesting contract process next year.
FMS Position posted on DefenseProcurementNews.com
Rakotis.llc posted an opening on our Job Board for a research position looking at weapon system historical pricing. This will support an entity in their negotiations for weapons procurement. For more information see the announcement here.
Dutch government comes up with creative way to make money on US weapon buys
According to this article in NisNews.nl, the Dutch government has come up with a way to make money on the foreign currency they transfer to the US to buy weapons and training. Rather then doing a direct government-to-government transfer of the $350 M or so they spend each year, they utilize a commercial account and pay over time. This allows them to get interest on the money.
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