Defense Procurement News

Lockheed Martin was awarded a contract by the US Air Force for production of 111 Joint Air to Surface Standoff Missile (JASSM) and related services. The contract has a value of $107 M. See the press release here. The missiles will be produced at the company’s facility in Troy, AL. The JASSM has now had over a 1000 units ordered with a production goal of 4,000. For more on the system you can read Wikipedia here.

According to this article the Commanding General of the Army’s Aviation and Missile Command (AMCOM) is worried about the potential supply of workers in the Huntsville, AL area in the future. The last round of BRAC moved two major commands to the Redstone Arsenal in Huntsville. Many of the people working there will not move for a variety of reasons. Major General Myles is concerned that the vacancies will suck people out of the existing Aviation and Missile commands to work at the Army Material Command and Missile Defense Agency. On top of that it is predicted for every government job moved at least one contractor job will be created. These workers have to come from somewhere and MG Myles hopes that local government, industry and higher education will train them without relying on subsidies from the Army. As in the past people will move to Huntsville, like your humble correspondent, to get these jobs, but that may not be enough.

This article describes the effect that Wright Patterson Air Force Base has on the local economy. As more contracts are placed for SETA support and R&D programs they spill over into the regular community. The area has certainly relied on the AFB in the past to support it, and looks forward to continuing to grow its economy based on the base’s activity.   Read the rest of this entry »

As reported here in the Atlanta Journal Constitution, Northrop Grumman continues to point out that the KC-45 contract if it survives the Boeing protest will bring lots of jobs to the US. Especially to the South. Not only is the main plant going to be at Mobile, AL; but this article shows that parts and components will be made at various Northrop plants in Georgia. A lot of the work will also be accomplished in Florida.   Read the rest of this entry »

Leasing company AWAS awarded Airbus a contract for 75 aircraft. In somewhat related story, Airbus is now saying that with a successful win of the KC-X contract with Northrop Grumman they will move civil aircraft production from Europe to Mobile, Al. See a press release on the AWAS award here. For a more complete discussion of the move to Mobile see this article. It benefits Airbus to move to a dollar country, as in Europe they pay Euros to their suppliers and workers, and sell their aircraft in dollars. The recent drop in the dollar is affecting the profit margins on their products. The plant they purchased in Mobile is large enough to do both KC-X production and other aircraft. If they are like they have been with the Eurocopter America plant in Columbus, MS they are also willing to expand as necessary.

Several of the Democratic members of the Arizona State House sent a letter to DoD and the Air Force in support of Boeing being awarded the KC-X new tanker contract arguing that it would protect jobs in the state.. See The Daily Dispatch here for more. The Air Force is considering proposals from Boeing and Northrop Grumman, although the Northrop deal would see Airbus build the tankers in Mobile, AL. For more on the KC-X program see this.

According to the Huntsville Times, several Huntsville area companies won contracts. They vary in size from $35 K to $247 M. Huntsville due to it being the headquarters for the Army’s Aviation and Missile Command has many small and large companies doing everything from development, SETA work and production. See the announcements here.