Congress’s Crystal Ball: Something Has to Give on the Budget

March 10, 2010 by Matthew Potter · Comment
Filed under: BNET, Syndicated Industry News 
The Congressional Budget Office (CBO) released their preliminary analysis of the next ten years of Government spending and it isn't pretty. The...

Navy Reversal Turns Partners Into Competitors

March 8, 2010 by Matthew Potter · Comment
Filed under: BNET 
Last year the Navy shook up its plans to buy the new Littoral Combat Ship (LCS). This was a small, advanced ship that would operate close to shore...

Northrop Might Wish It Had Not Won this Contract

March 4, 2010 by Matthew Potter · Comment
Filed under: BNET 
Virginia's Senate passed legislation restructuring the management of their massive IT out-sourcing contract with Northrop Grumman. The contract is...

Lockheed’s F-35 Problems Keep Piling Up

March 3, 2010 by Matthew Potter · Comment
Filed under: BNET 
More bad news for the Joint Strike Fighter (JSF) program has come out in the last week. Further delays to production and deliveries are expected....

Anthrax Contract Raises Questions For PharmAthene And Others

March 2, 2010 by Matthew Potter · Comment
Filed under: BNET 
PharmAthene the Maryland biotech company received a further contract to work on their anthrax vaccine. Due to the company's connections to senior...

Defense Deals Have Dried Up–for Now

March 2, 2010 by Matthew Potter · Comment
Filed under: BNET 
PriceWaterhouseCooper released a report showing that the total value of defense M&A fell precipitously in 2009. They feel that the recession...

The Hidden Costs of Social Engineering

March 1, 2010 by Matthew Potter · Comment
Filed under: BNET, Syndicated Industry News 
President Obama's Administration has discussed favoring companies that provide better wages and benefits in Federal contracting. This is proving...

Congress Earmarks Defense Budget for Padding

March 1, 2010 by Matthew Potter · Comment
Filed under: BNET, Syndicated Industry News 
Congress has the final word on budgets. They add funds for projects they like or want despite the wishes of the Defense Department and the...

KC-X Tanker Proposal News

To our loyal readers we are not ignoring the KC-X tanker RFP on Defense Procurement News but we have established a separate site, KC-X Tanker News, to cover that issue.

Lockheed Missile Program Dodges a Congressional Bullet

February 26, 2010 by Matthew Potter · Comment
Filed under: BNET 
Lockheed's troubled strategic cruise missile program, the JASSM-ER, performed well on recent tests. This has allowed the Air Force to begin buying...

Europe Breathes Life, Again, into the Airbus A400

February 25, 2010 by Matthew Potter · Comment
Filed under: BNET 
It looks as if a deal has been finally made to save the struggling European A400M transport program. Beset by delays and cost problems the Airbus...

Air Force Hopes Third Time is Lucky in Boeing-Airbus Tanker Contest

February 25, 2010 by Matthew Potter · Comment
Filed under: BNET 
The final RFP for the U.S. Air Force's new aerial tanker was released Wednesday. The Government hopes that more then one bid will be received....

Defense Contractors Go on the M&A Offensive

February 24, 2010 by Matthew Potter · Comment
Filed under: BNET 
A nasty M&A fight has broken out in Great Britain between two medium sized defense contractors -- VT Group and Babcock International. One of...

Humana Gets Reprieve from Pentagon but not from the Market

February 23, 2010 by Matthew Potter · Comment
Filed under: BNET 
Humana is still waiting to hear the results of the Government review of the award last year of TRICARE management contracts. It still has a chance...

How the F-35 Is Stalling, Even Before Take-Off

February 23, 2010 by Matthew Potter · Comment
Filed under: BNET 
There continues to be bad news for the F-35 Joint Strike Fighter. More delays and cost increases were announced last week. Is the program now...

Defense is Missing in Action in U.S. Stimulus

February 22, 2010 by Matthew Potter · Comment
Filed under: BNET, Syndicated Industry News 
The U.S. passed last year a "Stimulus" bill that has seemed to have little effect on the unemployment rate. Little of this money went to the...

Department of Defense Willing to do KC-X with only Boeing

In a post on BNET Industries, Matthew Potter notes that the Department of Defense is willing to go ahead with only Boeing bidding on the KC-X:

The Secretary of Defense Robert Gates in testimony to the House Armed Services Committee made it clear that the Defense Department and U.S. Air Force will release the Request for Proposal (RFP) for the new KC-X tanker and award a contract even if only Boeing (BA) submits a proposal. The Department hopes that the Northrop Grumman (NOC) and EADS (EADS:P) will submit a bid but will go forward with the planned contract even if they don’t.

In early December Northrop Grumman’s CEO sent a letter to the Air Force stating that due to the terms of the draft RFP they felt that it so favored Boeing that they and their partner EADS, parent of Airbus, would not submit a proposal. Northrop had won the contract in 2008 only to lose it on protest by Boeing with the Government Accountability Office (GAO) saying that the Air Force changed the requirements and was not completely fair to Boeing. An earlier attempt to award Boeing a lease for KC-767 aircraft collapsed amid scandals and Congressional desire to have contest.

Read the entire post Defense Department Willing To Do KC-X With Only Boeing Bid for more.

Pentagon Report Hints at Future of Military-Industrial Complex

February 19, 2010 by Matthew Potter · Comment
Filed under: BNET 
The recent Quadrennial Defense Review (QDR) that looks at U.S. strategy and force structure warns that the second tier of suppliers in the U.S....

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…

How U.S. Defense Contractors Are Creating Their Own Competition

February 18, 2010 by Matthew Potter · Comment
Filed under: BNET, Syndicated Industry News 
Saudi Arabia recently awarded a contract for U.S. made C-130 transport aircraft engine maintenance to a Greek company. Over the last few decades...

Defense Contractor BAE Takes a Licking

February 17, 2010 by Matthew Potter · Comment
Filed under: BNET 
BAE Systems (BAE:LSE) suffered two blows these past weeks. First they settled a bribery case with the U.S. and the U.K. for over $400 million....

Congress Looking At Protecting Small, Disadvantaged Businesses

February 17, 2010 by Matthew Potter · Comment
Filed under: BNET 
Due to reports of more fraud with front companies to take advantage of U.S. Government rules favoring some small and disadvantaged companies new...

Alabama Aircraft Scores a Favorable Union Pact, Showing Just How Scary Defense Contracting Looks These Days

February 11, 2010 by Matthew Potter · 1 Comment
Filed under: BNET, Syndicated Industry News 
Alabama Aircraft, a small maintenance-services outfit, won a favorable union contract -- a sign of the uncertainty clouding the outlook for small...

Winding Down In Iraq Costs Cubic

February 10, 2010 by Matthew Potter · Comment
Filed under: BNET 
Cubic Corporation (CUB) a mid-sized defense contractor announced their recent quarterly results. Due to the end of contract in Iraq which was not...

BAE Systems To Pay Fine To Settle Bribery Case

February 9, 2010 by Matthew Potter · Comment
Filed under: BNET 
It was announced that BAE Systems had agreed to settle charges that it had been involved in bribery with Suadi Arabia by paying $450 million. The...

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