More Foreign Sales Of The F-16
Filed under: Business Line, Companies, Contract Awards, Countries, Department of Defense, Egypt, Events, FMS, Lockheed Martin, Military Aviation, Services, production program
Fresh off of a recent sale of F-16 fighters to Morocco Lockheed Martin announced a further deal with a North African country. Egypt through the U.S. Air Force will go ahead and purchase up to twenty-four of the aircraft. These two deals will help keep the production line open for several more months. The U.S. and many of its allies are moving out with the F-35 JSF as a replacement for the F-16 Falcon which has been in use for thirty years.
Israel To Buy The F-35 If Their Conditions Met
Filed under: Business Line, Companies, Contract Awards, Countries, Department of Defense, Events, FMS, Israel, Lockheed Martin, Military Aviation, Services, U.S. Air Force, development program, production program
Israel would like to buy the F-35 Joint Strike Fighter (JSF) to add modern, stealthy aircraft to its fleet of F-15 and F1-6 aircraft. As with the previous generation of United States aircraft they would also like the ability to integrate their own electronics and weapon systems on it. The Israelis have done this with all the weapons they have bought or captured over the years.
They rely on their own sophisticated defense industry to develop systems that they would like to put on the various platforms that they operate. The U.S. has resisted the Israeli requests in a bid to protect the technology and systems developed for the F-35. The Israelis have been negotiating this issue for several months and have won most of what they want but the desire to put their own electronic warfare system has things stymied. The U.S. will allow radar and weapons to be added but do not want to open the software at that level to Israel.
The contract could be for up to seventy-five aircraft total making Israel one of the largest purchasers and would certainly help the program facing budget issues and delays. The more that the U.S. is able to sell overseas the lower the average price of an aircraft will be. It behooves the U.S., Lockheed Martin and Israel to work out some sort of deal as the advanced capability of this aircraft will only help Israel in the future.
Latest JSF Order Placed
Filed under: Business Line, Companies, Congress, Contract Awards, Countries, Department of Defense, England, Events, FMS, Federal Budget Process, Lockheed Martin, Military Aviation, Norway, Restructuring, Services, U.S. Air Force, U.S. Marine Corps, development program, production program
The United States government acting for itself and its Allies awarded a contract to Lockheed Martin for the next procurement of the F-35 Joint Strike Fighter (JSF). The $2.1 billion contract option restructured an existing advanced procurement contract into a Cost Plus Incentive Fee (CPIF). It was the third option to an existing Low Rate Initial Production (LRIP) contract.
As part of this option seventeen aircraft were ordered for delivery by the first quarter of Fiscal Year 2012. Seven of the JSF will be for the U.S. Air Force and seven for the U.S. Marine Corps. One was purchased for Norway and two for Britain as part of the several JSF international partners.
India Releases Helicopter Requests For Proposals
Filed under: Boeing, Business Line, Companies, Countries, Events, FMS, India, Military Aviation, Proposal, production program
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.
Iraq Reopens Arms Buying With France
Filed under: Business Line, Companies, Contract Awards, Countries, EADS, Events, FMS, France, Iraq, Military Aviation, production program
In the past France sold substantial amounts of military equipment to Iraq when it was ruled by Saddam Hussein. These included military vehicles, aircraft and missiles. The most notable use of this equipment was the attack on the USS Stark (FFG-31) by a Mirage F1 jet firing Exocet surface-to-surface missiles. Since the liberation of Iraq by the Americans that country has tended to sell the most equipment to it. This has included aircraft, vehicles and support equipment. AFP writes that France and Iraq have now signed a contract for twenty-four EC 635 helicopters. The article also states that further deals are being explored by the two countries. Iraq will need to rebuild its military and will utilize its rather large oil funds for this meaning that several major contracts will probably be announced over the next few year. This contract is estimated at almost $500 million and includes parts and support.
Aero India International Show Attracts Fighter Bidders
Filed under: Boeing, Business Line, Companies, Countries, D'Assault, EADS, Events, FMS, India, Lockheed Martin, McDonnell Douglas, MiG, Military Aviation, Proposal, SAAB, Trade Shows and Events, production program
The six companies that submitted proposals for India’s new Medium Multi-role Combat Aircraft (MMRCA) contract will all be in attendance at the Aero India International Show. The Economic Times reports that the competitors for the potential $10 billion contract will be at the show along with a host of other U.S. and European companies. Boeing, Lockheed, EADS, SAAB, Dassault and MiG all submitted proposals for the program. The theme of the show will be business activity between Indian and foreign companies. This contract is now one of the largest for tactical aircraft out for bid, and the companies will be touting their wares at the show.
Ratheon Wins Follow On Contract from UAE
Filed under: Business Line, Companies, Contract Awards, Countries, FMS, Raytheon, UAE, missile defense, production program
Late last year the UAE bought $3.3 billion worth of PATRIOT missile systems from Raytheon. Now the company was awarded a follow on contract for spare parts and support. Forbes reports that this contract is worth up to $246 million. The contract is in two parts and the first $123 million has been executed with the rest to occur as an option. This is the first major export of the PATRIOT outside of NATO. It is obvious that the UAE is looking at regional states with ICBM programs when investing in this system.
U.S. Buys Next Batch of GMLRS
Filed under: Business Line, Companies, Contract Awards, Events, FMS, Lockheed Martin, Services, U.S. Army, production program
Reuters reports that the U.S. Army awarded Lockheed Martin a contract to produce the next batch of Guided Multiple Launch Rocket System (GMLRS) rockets. The GMLRS upgraded the MLRS with longer range, precision attack versions of the projectiles. The award will also support the FMS programs of a variety of countries. The contract has a a value of over $350 million. Along with a recent PAC-3 award Lockheed received over a $1 billion of production and support contracts in the last few weeks.
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.
US Navy orders torpedoes
Filed under: Contract Awards, FMS, Raytheon, U.S. Navy, production program
The US Navy contracted with Raytheon to procure ship, submarine and aviation based torpedoes. The $165 M contract is for both Mk 48 and Mk 54 torpedoes. Some of them will be used to fulfill FMS orders as well. The Mk 48 are larger and equip submarines. The Mk 54 light weight torpedo can be dropped by aircraft or fired from surface ships.
See the press release at Forbes.
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.
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.
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.
India moves to limit middlemen in contracts
Filed under: Boeing, D'Assault, EADS, FMS, India, Lockheed Martin, MiG, Military Aviation, Proposal, SAAB, production program
India already loosened their offset requirements leading to progress on the new fighter contract. Now the government moved to limit the use of Indian representatives or “agents” in helping the foreign companies with their bid. The six teams that submitted proposals are moving to line up Indian companies to support their fabrication and delivery of the aircraft. By limiting these agents the Indian government hopes to make the process more open and increase the ability of non-Indian companies to use their industry.
See Central Chronicle for more.
C-17 FMS buy
Filed under: Boeing, Contract Awards, FMS, Military Aviation, Qatar, production program
Boeing will continue the C-17 production line for a few more years. See a press release here. No details of how many aircraft or contract value were provided. Boeing is on contract for 190 C-17s for the USAF, of which 175 have been delivered. 15 more were just placed on contract as part of the FY08 Defense Supplemental bill. Boeing had been seeing the end of the production line with the finishing of USAF and foreign orders. Depending on the size of the Qatar order it may extend the line for some time.
Army buys ammo for Afghanistan
Filed under: Allied Defense Group, Congress, Contract Awards, FMS, U.S. Army, afghanistan, logistics
Fresh off all of the problems with the contract let to AEY, the US has moved to a more traditional source for ammo for Afghanistan’s military and police. See the press release here. Allied Defense Group has been awarded a FMS contract to provide ammo. Allied has grown significantly over the last 7 years as the demand by the US for ammunition of all types, but especially small arms, has increased.
Israel passes Britain to become fourth largest defense exporting country
According to this article in 2007 Israel passed Britain to become the fourth largest defense exporting country. They follow the US, Russia and France now. The two biggest customers are the US and India. The recent win of the Indian AWACS contract, reported here, had a great deal to do with that. The Israeli government and industry have made major strides in recent times increasing their exports rather then just focusing on domestic needs.
Romania to buy F-16’s
Filed under: Contract Awards, FMS, Lockheed Martin, production program
According to this article the US DoD has proposed selling 48 F-16 fighters to Romania. This would be one of the biggest FMS sales to a former Warsaw Pact nation. The addition of the F-16 would be a major upgrade to the capability of the country. The Czech Republic has looked at buying some Western equipment and there has been some purchases of companies like Poland’s PZL by Western countries. The movement into NATO of some of these countries will also accelerate these kind of purchases as there will need to be movement towards standardization.
Struggling Force Protection wins UK contract
Filed under: Contract Awards, England, FMS, Force Protection, production program
Force Protection announced that they had been awarded a contract to deliver 157 MRAP to the UK armed forces. See the press release here. Force Protection had been struggling as they won very little of the last US contract for MRAP vehicles. This contract will certainly tide them over for several months as it is worth an estimated $125 M. See a post here on Force Protection’s situation.
Indian C-130J ordered
Filed under: Contract Awards, FMS, India, Lockheed Martin, Military Aviation, production program
The Department of Defense ordered the six Indian C-130J aircraft from Lockheed Martin. See the article here. As in the case of most Foreign Military Sales (FMS) India just piggy-backed on the current production contract. This gives them the lowest price possible due to production quantities and stability. The total contract is worth over $1 B, but the aircraft part is about $600 M.
Japan to modernize E-2C aircraft
Filed under: Contract Awards, FMS, Japan, Military Aviation, Northrop Grumman Corp., production program
Northrop-Grumman received a contract worth $37 M to upgrade Japan’s E-2C aircraft. See an article here. Originally a carrier based Airborne Warning and Control System (AWACS); several countries like Egypt, Israel, Singapore and Japan have bought it to base on land and use in their restricted airspace.
US law prevents Australia from acquiring F-22
Filed under: Australia, Department of Defense, FMS, Federal Budget Process, Lockheed Martin, Military Aviation, U.S. Air Force, production program
Australia has expressed an interest in procuring F-22 Raptor aircraft. Currently they are planning on buying JSF ultimately. Currently US law prevents the export of the F-22. In this article from News.com.au, the US Secretary of Defense, Robert Gates, expresses the sentiment that Australia would be good stewards of the F-22 if they received them. Obviously the law is to prevent the transfer of what is considered the best technology that the US has, but there are certain allies in the past that have been able to share it. As previously discussed technical transfer laws have become very restrictive and have affected US programs.
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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.
Saudi Arabian arms deal to go forward
The President has informed Congress that he intends to sell to Saudi Arabia $123 M of JDAM guidance kits. This extends the recent batch of orders to Arab states. See this article here for more. Their were some thoughts within Congress to try and delay or stop the deal, but diplomatic desires over ruled this.
Raytheon awarded AIM-9X production contract by Navy
Filed under: Contract Awards, FMS, Raytheon, U.S. Navy, production program
The US Navy awarded Raytheon a $126.7 M contract for AIM-9X Sidewinder Air-to-Air Missiles (AAM) production for both the Navy and Air Force. See DefenseLink.mil here for more. The contract also includes FMS sales to Australia and South Korea.
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