• Turkey’s current account deficit is hitting levels that worry some observers. High levels have been predictors of economic crises in the past. If that comes to pass, there are a lot of new and pending weapons programs that would be affected.

• Turkey’s next-generation fighters are among them. There are reports of growing interest in a split-buy, to reduce dependence on the USA. Italy’s government is pushing Turkey to solve that problem by joining the Eurofighter consortium. Turkey might also pick a hi-low approach, and join existing arms partners South Korea and Indonesia in KF-X.

• BAE Systems snags 10-year, $850 million contract to manage the US Army’s Radford ammunition plant in southwest Virginia; stock of incumbent ATK takes a hit.

• In the money: EADS posts a net loss of EUR 12 million, on revenues of EUR 9.9 billion, as a result of negative dollar accounting revaluation; however, net cash reserves reach record EUR 12.2 billion (~17.2B USD).

• Russian Space Forces plans to test a new Voronezh DM radar being built near Baltic port of Kaliningrad by end of 2011, one of four radars being built to fill radar coverage gaps created by the collapse of the Soviet Union.

• Goodrich completes EUR 331 million for Microtecnica, a Turin, Italy-based provider of flight control actuation systems for helicopters, aircraft, missile actuation, and aircraft thermal and environmental control systems for military and commercial customers.

• Azerbaijan extends joint production agreement with South Africa’s Paramount Group to produce an additional 30 Marauder [PDF] and 30 Matador [PDF] mine-protected vehicles, with deliveries running through late 2012.

• Raytheon & Boeing finish government testing of their JAGM light strike missile contender, and keep their perfect test record.

• Good news: 1st A109 light helicopter from the May 2008 contract enters service in New Zealand. Bad news: They’re still waiting for the NH90-TTH medium helicopters from their July 2006 contract.

• Northrop Grumman is cutting 200 jobs at its Electronics Systems division, mostly in the Baltimore area.

• Terrorists have procurement networks, too – most of which also have criminal uses. Read FP Magazine’s slanted but still enlightening “Tunnelnomics” piece re: the Israeli/Gaza border.

• House Armed Services Committee releases full committee markup of the FY 2012 defense authorization bill, which revives the F136 engine for the F-35 Joint Strike Fighter.

• Peru’s $1 billion SIVAM Amazon basin surveillance program attracts IAI interest, centered on its Gulfstream G550 CAEW platform. Neighboring Chile uses the same Phalcon radar technology, mounted on a 707. In Peru, IAI can be expected to compete with Embraer’s ERJ-145 based R-99A/B surveillance aircraft, which handle SIVAM duties for Brazil.

• Israel is planning to invest $1 billion in development and production of the Iron Dome rocket/artillery defense system, says Defense Ministry.
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• Surviving tail wreckage of the H-60 Black Hawks used in the Bin Laden raid reveals unique “stealth” features. Bill Sweetman discusses the limits of helicopter stealth, and here’s a link to both tail wreckage photos and some derived conceptual illustrations.

• The volume of mergers and acquisitions in the aerospace and defense market increased 70% in the 1st quarter of 2011, compared with 2010, according to the latest report by PricewaterhouseCoopers.

• Electronic warfare requirements are expected to fuel demand for space-based communications systems, predicts Strategy Analytics.

• South Korea continues to work on systems for its 3,000t KSS-III diesel-electric fast attack submarine project. It’s also extending its base’s technical capabilities, from combat systems to vertical launchers.

• Qatar’s first C-130J-30 of 4, ordered in October 2008, finishes production.

• Another test of the French GPS/laser guided AASM bomb, against a fast-moving target. Production of this AASM version is set to begin in 2012.

• Are hybrid vehicles in the US military’s future?

• Fueled by military ammunition sales, ATK posts highest annual earnings per share in company history ($9.32), as well as net income of $313 million and sales of $4.8 billion for FY 2011.

• Russia launches the Meridian 4 military communications satellite aboard a Soyuz 2.1a rocket from the Plesetsk space center in northern Russia; Meridian is replacing the aging Molniya satellite system.

• SAIC gets task order worth up to $90 million to provide technical and operations support to the Defense Enterprise Computing Center in Montgomery, AL under the $12.3 billion DISA ENCORE-II contract vehicle.

• Up to $29 million to Carahsoft and CollabNet to provide software and consulting services for DISA’s forge.mil collaborative software development site.

• Osama Bin Shot, Osama Bin Buried. Bin Laden was buried at sea from the deck of the USS Carl Vinson [CVN 70], which completed a major RCOH retrofit in December 2009.

• Boeing charged the US Army $13 million more than the “fair and reasonable” price for 18 parts, the DoD Inspector General concludes [PDF]; so far, Boeing has refunded $1.6 million.

• House Armed Services Committee panels release details of FY 2012 National Defense Authorization Act markups.

• Australia’s DoD adapting to new disclosure rules for all government agencies.

• Australia delivers its initial report on its MRH-90 (NH90) helicopter program. Short version? The program’s on probation.

• US AFSOC begins running a transportable $7.5M waste to energy plasma system at Hurlburt Airfield, FL. It has 5x more capacity than the next biggest system using this technology.

• The textile specialists at Ehmke Manufacturing have designed a new system of body armor vests and attachments they call “Higher Ground.” They’ve put some thought into it, too… check it out.

• NATO-related spending is expected to fuel a turnaround in the Romanian defense market, from a 1.5% decline from 2006 to 2010 to 2.8% annual growth through 2015, according to iCD Research.

• ATK receives more than $488 million in US Army orders to produce a mix of 5.56mm, 7.62mm and .50 caliber military ammunition at the Lake City Army Ammunition Plant in Independence, Mo.

• A United Launch Alliance Atlas V rocket is scheduled to launch the first satellite (GEO-1) of the Space Based Infrared System (SBIRS)-High satellite constellation on May 6 from Cape Canaveral Air Force Station, FL.

• MCR in McLean, VA wins an $8.8 million contract to provide management and acquisition support for NATO’s Consultation, Command, and Control Agency.

• Contractor killed in blast and fire at the US Army Medical Research Institute of Chemical Defense at Aberdeen Proving Ground, Md.

• Integral Systems in Colorado Springs, CO gets $21.8 million in contracts to provide technical support for US military satellites.

• ATK gets $13.4 million in new 25mm tactical ammunition contracts from allies in the Middle East and North Africa.

• AAI receives $9.7 million contract to provide an electronic warfare radio frequency simulator to the USAF’s EW Avionics Integration Support Facility at Robins Air Force Base, Ga.

• Alion snags $4.6 million US Navy contract to provide PC-based systems to train sailors for the Littoral Combat Ship-2 readiness control officer position.

• Researchers find that helmets with 1/8 inch more foam padding would offer better protection against soldiers’ brain injuries.

• DoD issues 27 contracts totaling $191 million under the Multidisciplinary University Research Initiative program for academic research projects [PDF] with potential military applications.

• DARPA is looking for industry help in developing “flexible/robust energy storage systems” that can use renewable energy sources for forward operating bases.

• Up to $163 million [PDF] to General Dynamics for demilitarization of 8 munitions families including high explosive bombs, improved conventional munitions, fuzes, Explosive D bombs and ammunition ranging for 25mm to 106mm calibers at the US Army Contracting Command in Rock Island, IL.

• Japan is seeking stronger military ties with the US, says Japanese Defense Minister Toshimi Kitazawa.

• AME conducts first test flight of Fury 1500 STUAS powered by a heavy-fuel engine at the Fort Hunter Liggett range on California’s central coast.

• Calibre gets contract worth up to $45 million contract to provide IT and program management support services to the Army National Guard’s Logistics and the Aviation and Safety Divisions.

• DoD wants to speed adoption of mobile and and cloud IT technologies, says Chief Information Officer Teri Takai.

• South Korea to spend KRW 2-3 trillion (about 1.8-2.8 billion dollars) on air and missile defense system to counter North Korean missile threat.

• DoD tells Congress that 95 weapons programs had $64 billion in net cost increases; 7 major weapons programs are in “critical or significant” breach of the Nunn-McCurdy limits on unit cost growth.

• Pentagon chief Robert Gates plans to propose an additional $400 billion in defense cuts through 2023 to President Obama.

• The Canadian defense budget is predicted to grow at a meager 0.44% per year through 2015, reaching US$19.7 billion, according to ASD Reports.

• RAF Voyager transport/tanker aircraft, based on the Airbus A330 airframe with a wingspan of 60mm, arrives in UK; the Voyager will replace VC-10 and Tristar fleets.

• Staff Gasket in Alpine, NJ, and company President Eric Helf plead guilty to fraud in using foreign manufacturers, instead of US-based firms, to supply replacement parts to the US military.

• General Dynamics snags $33 million contract to supply high-explosive incendiary rounds (new production of PGU-13 D/B and remanufacture of PGU-13 HEI cartridges) for 30mm GAU-8 Avenger cannon used in the Air Force A-10 Thunderbolt attack aircraft.

• Reuters Special Report: How Libya is a showcase in the new arms race. Dassault’s Rafale fighters definitely grabbed attention with their reconnaissance and ground attack punch – still needs a targeting pod, though. Competing Eurofighters are touting EGBU-16 GPS/laser-guided bomb tests and showcasing their Paveway precision attack punch in Libya, complete with targeting pods, while Tornados fire the new MBDA Brimstone anti-armor missiles. Meanwhile, the US State Department has reportedly restricted some proposed regional arms sales from American firms.

• Qatar supplies French-made Milan anti-tank missile systems to Libyan rebels. Can they use them effectively?

• SpaceX prepping Falcon 9 Heavy rocket, aims to surpass EELV performance and break the $1,000 per pound barrier for payload delivery to Low Earth Orbit (LEO).

• Northrop Grumman, US Navy successfully test laser weapon by setting target boat on fire.

• After posting a healthy 8.6% annual growth rate from 2006 to 2010, Portugal’s defense budget is headed for a .45% annual decline through 2015, according to iCD Research. Of course, if Portugal’s lenders keep raising their rates… any Wall St. types want a used F-16 for their garage? Maybe a U212A submarine to cruise Cape Cod?

• US Army Rapid Fielding Initiative’s Project Workhorse hopes to field a load-carrying, soldier-following robot to Afghanistan by October 2011. Nothing like testing the idea on terrain fit for the Mars Rover.

• IAI is offering a tethered ETOP UFO-style UAV in Latin America, to provide 10+ km radius surveillance from tactical ground vehicles.

• SAIC gets $41 million SeaPort-e task order to develop a lifecycle research program to combat equipment and infrastructure corrosion, which the DoD estimates [PDF] costs $22.5 billion per year to address.

• Pall gets $14 million order to supply engine filters for 59 US Army CH-47 Chinook helicopters.

• Setpoint Systems snags an $11.9 million contract from ATK Small Caliber Systems to provide 4 additional .50-caliber ammunition case manufacturing systems at the Lake City Army Ammunition Plant in Independence, MO.

• ROE Farce. Taliban detainees who had been videotaped placing bombs in the culverts of roads near Kandahar, with chemical traces found on their hands, are released after 96 hours rather than prosecuted, in a drearily familiar routine. All the technology in the world won’t make up for terrible policy, and its corresponding effects on both morale and local cooperation.

• Defense industry needs to improve cost, weight, and energy efficiencies in new weapons systems, US defense officials tell US Navy League conference.

• Former Joint Chiefs of Staff Chairman Peter Pace says DoD should be in charge of US cybersecurity, not the Department of Homeland Security.

• Microsemi and Anaren are competing to acquire AML Communications, a Camarillo, CA-based defense electronics supplier (e.g., for Raytheon’s MALD decoys). With a bid of $28 million, Microsemi is the front runner.

• Meanwhile, Forbes is predicting a wave of consolidation in the defense electronics market.

• Lockheed Martin, URS, and InDyne team to bid on USAF Launch and Test Range System Integrated Support Contract (LISC), which is a follow-on to the Spacelift Range Systems contract currently held by ITT. LISC is expected to be awarded in 2012 for an estimated value of between $2 billion and $3 billion.

• ATK gets $49.9 million contract option to supply LW30mm M789 HEDP ammunition [PDF] for the M230 chain gun mounted on the US Army’s AH-64 Apache attack helicopter.

African sale for ATMOS howitzers. (April 6/11)

In June 2009, Elbit Systems in Haifa, Israel, agreed to pay $18 million for a 19% stake in fellow Israeli defense firm Mikal Ltd., the country’s 2nd largest privately owned defense conglomerate. The Mikal group operates through 3 main divisions: Soltam Systems, which supplies artillery, mortars, and ammunition; Saymar, which supplies armored fighting vehicles; and ITL Optronics, which supplies sensors for soldiers, unmanned aerial vehicles, military vehicles and battle management systems.

By August 2010, however, the acquisition had shifted to a targeted buy of several Mikal properties. The move will consolidate Elbit’s position in a number of sectors, offering the prospect of close links between its sensors, targeting systems, UAVs, and front-line battlefield platforms….

• The Acquisitions
• Contracts & Key Events [updated]
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