• 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.

• President Obama names Leon Panetta as the new US defense secretary and Gen. David Petraeus as the new CIA director, replacing Panetta. Tom Ricks sees Panetta’s appointment as the precursor to large budget cuts.

• The general’s shift to the CIA is especially interesting, given the growing intelligence role carved out by the US military and special forces since 2001. One early flashpoint: Petraeus’ optimism about Afghanistan reportedly isn’t shared at the CIA.

• Middle East military air market is predicted to triple between 2011 and 2020, says Frost & Sullivan.

• Contractors could take hit from US Navy’s decision to suspend the contracting authority of the Naval Undersea Naval Warfare Center (NUWC) in Newport, RI due to alleged bribery scandal involving a NUWC engineer.

• DoD lacks plan to replace National Security Personnel System, GAO warns.

• Boeing and the U.S. Navy celebrate the induction of the 500th Super Hornet family fighter (F/A-18E/F Super Hornets and EA-18G Growlers) into the US Navy. It would have been ordered under the previous MYP-II multi-year contract, not the current MYP-III deal.

• US Customs & Border Protection gets its 2nd re-winged P-3C, of 14 planned. Unlike Navy P-3s, some USCBP aircraft (P-3 AEW vs.P-3 Tracker) have a distinctive AWACS radome on their backs.

• ATK gets $80 million order from General Dynamics to produce MK90 propellant grains for the MK66 rocket motor used in the Hydra-70 rocket systems.

• Latest military activity in Libya from Reuters.

• General Dynamics, Northrop Grumman, and Boeing all beat Wall Street first quarter results estimates.

• Raytheon sees strong Q1 growth in its ace and Airborne Systems (SAS) business thanks to its acquisition of Applied Signal Technology. Meanwhile ManTech had a mix of organic and external growth through the quarter.

• Oshkosh’s Q2 finds the company in the middle of M-ATV to FMTV transition.

• GAO finds flaws in DoD’s contingency contracting, which amounted to $367 billion in FY 2010.

• Russia successfully test fires second RSM-54 Sineva SLBM (SS-N-23 Skiff) from a Delta-IV class submarine, according to the defense ministry.

• The Royal Australian Air Force completes testing of Boeing’s Vigilare command and control system.

• 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.

• Want to buy an aircraft carrier? Have we got a deal for you. HMS Ark Royal is up for sale on the Internet.

• Israel Defense Forces deploy first Iron Dome rocket/artillery defense system along the Gaza border.

• Demand for new technologies is predicted to fuel growth in the global defense communications market, according to Frost & Sullivan.

• ATK receives $65.8 million engineering and manufacturing development contract for the US Army’s XM25 auto-ranging grenade gun.

• Lockheed Martin gets contract worth up to $57 million to provide training and technical support for US Coast Guard aviation instruction.

• Israel’s Elbit Systems snags $9.6 million USMC contract to provide the Joint Terminal Attack Controller Laser Target Designator [PDF].

• Why no F-22As over Libya?

• If you have complaints about low-flying RAF aircraft, there’s one country that seems to be missing from the official complaints page.

• Want a Type 42 air defense destroyer? Or just an SAS combat smock? Britain’s Disposal Services Authority may be the place for you.

• Germany upgrades Afghan contingent with more protected vehicles, other supplies – to include Marder 1A5 IFVs.

• Russian naval strike aircraft will be reassigned to Russian Air Force by the end of 2011. Naval strike aircraft include Tu-22M3 Backfire long-range bombers, MiG-31 Foxhound interceptors, Su-27 Flanker fighter jets, and Su-24 Fencer attack aircraft.

• ATK snags $49 million US Navy contract to produce 5.56mm and 7.62mm ammunition for use in the MK16 and MK17 Special Operations Combat Assault Rifle (SCAR).

• Sikorsky’s X2 compound helicopter wins the 2010 (100th) Collier Trophy for aviation achievement.

• USAF Air Combat Command’s new HC-130J combat search and rescue plane completes developmental testing, will begin deliveries in August 2011 alongside AFSOC’s MC-130J Combat Shadow IIs. Both are part of the C-130J Super Hercules family.

• BAE Systems gets GBP 22.5 million contract to provide training support to the Royal Navy’s submarine and mine warfare command team.

• Philippine commission finds a “staggering amount” of fraud in military procurement (and pretends to be surprised). Department of National Defense finalizes measures to prevent further fraud. Color us skeptical.

• The UAE is increasing pensions for military personnel by 70%, and giving bonuses to ministry of defense and armed forces staff, in a move seen as an effort to shore up loyalty.

Orbital MRT launch

March 8/11: The US Missile Defense Agency’s issues Orbital Sciences Corp. a $217.1 million firm-fixed-price contract with provisions for fixed-price incentive, cost-plus-award-fee, cost-plus-incentive-fee, cost-plus-fixed-fee, and cost-reimbursement clauses. In exchange, Orbital and subcontractors that include ATK and Honeywell will supply fully ready intermediate range ballistic missile targets, associated objects; and support services that include inventory storage and maintenance management, pre- and post-mission analysis, launch preparation and execution, engineering services, and modeling and simulation. If all options are exercised, the contract’s total value could rise to $1.1 billion. The total contract period of performance is from March 2011 to January 2018 (HQ0147-11-C-0006).

Orbital’s Multi-Mode Medium Range Target (MRT) system is frequently used to test SM-3/Aegis BMD and THAAD missile defense systems. It’s an innovative design that can be launched from land, sea, or even out the back of a C-17 heavy transport, using a parachute extraction and descent system. Orbital confirms to DID that the IRBM-T will be a new design, however, which they are not yet at liberty to discuss.

This purchase, and the push for a new design, fits into an important modern trend…

Arrow test concept

In a dawning age of rogue states, ballistic missile defenses are steadily become a widely accepted necessity. Iran is widely believed to be developing nuclear capabilities, and Israeli concerns were heightened after Iranian President Mahmoud Ahmadinejad urged that Israel be “wiped off the map” (the fact that America was also placed in that category went largely uncovered).

Because missile defenses are so important, states like India and Israel have taken steps to ensure that they have the ability to build many of the key pieces. The Arrow project is a collaboration between Boeing and IAI to produce the missile interceptors that accompany the required radars, satellites, command and control systems.

• The Arrow System
• Contracts & Key Events, 2004-Present
• Additional Readings
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