• Defense Secretary Panetta removes the F-35B STOVL (Short Take-Off, Vertical Landing) from its 2-year probation, just 1 year in. Rolls Royce is very happy. James Hasik adds some thoughts about the timing.

• Panetta also stated the US will keep 11 aircraft carriers.

• The US Army responds to complaints that their policy of refusing to arm MEDEVAC helicopters, in a war against illegal combatants, has led to delayed response and extra casualties.

• Fresh from its UAV pact with Alenia, EADS signs an agreement with Rheinmetall for a joint venture in the UAV field. Rheinmetall makes the KZO tactical UAV, which has been fielded in Afghanistan alongside Germany’s longer-range, Rheinmetall-operated, leased Heron-1 UAVs.

• Looks like Colombia was the country that recently joined Israel and Chile as Hermes 900 MALE UAV customers. The Hermes 900 is a Predator-size UAV, from the firm that makes Britain’s new MK450B Watchkeeper system.

• Australia’s Army has temporarily suspended S-70A Black Hawk helicopter flights, due to fractured bolts. The RAN’s S-70B Seahawk naval helicopters are different enough that they remain unaffected.

• The Navy thinks a small heli-UAV is just the thing to keep tabs on agricultural data at its Maui (Hawaii) experimental biofuel farm.

• US House Armed Service Committee (HASC) Gabrielle Giffords (D-AZ-8) is resigning from Congress.

• Forthcoming HASC hearings: Getting Innovative Solutions from Concept to the Hands of the Warfighter (this afternoon); episode XXXVIII of Perspectives on Financial Improvement and Audit Readiness Efforts (tomorrow morning).

• According to Reuters the “activist” hedge fund MMI Investments LP is liquidating, after having taken positions in several defense and aerospace companies in the past couple of years.

Harfang UAV, DGA

Mantis picked? (Feb 5/12)

Unmanned Aerial Vehicles have become a must-have item for modern armies, and the pressures of modern campaigns are forcing rapid acquisitions. Mini-UAVs are being bought off the shelf, and leased tactical options like Boeing’s ScanEagles and Aeronautics DS’ Aerostars have carved out their own niche. These days, rent-a-UAS services even include high-end MALE (Medium Altitude Long Endurance) options like IAI’s Heron UAVs.

France bought mini-UAVs off the shelf, but turned to a build-in-partnership approach for its high-end machines. That sacrificed some fielding speed and cost, in order to build the industrial capabilities of key French firms. Their Harfang/ SIDM IUAV Program to field an IAI Heron derivative hit some snags; fortunately, France had started early, and the Harfang is now serving in Afghanistan. The existing fleet isn’t keeping up with France’s growing land and naval needs, however, which leads to the question: what’s next?

The answer is a fleet of advanced medium UAVs, type unspecified, under a program labeled “DTIA”. Deliveries have been pushed back from 2013-2015 to 2020 or later, and options for France are reportedly rather broad. Their choice may become a joint program with Britain, and may even influence UAV decisions in other countries. Meanwhile, France has chosen modified IAI Heron TP/ Heron-2 UAVs as an interim solution. Or have they…?

• France’s Next MALE UAV: Contenders [updated]
• Contracts & Key Events [updated]
• Additional Readings
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C-23 landing, Kuwait

M7 Aerospace became an Elbit Systems of America subsidiary in December 2010. Its 6 integrated business segments include Aerostructures Manufacturing; Government Logistics Support Services; Maintenance, Repair & Overhaul; Engineering Services; Aircraft Parts & Support and Supply Chain Management and Purchasing. Their platform specialties include the Shorts Aircraft series of short take-off light transports (incl. US Army’s C-23), and Fairchild’s Merlin & Metro (US C-26 variants).

The US military continues to operate variants of these aircraft, and M7’s strong position in those niches has led to a number of contract wins. A pair of December 2011 support contracts, dating back to FY 2005 and FY 2009, illustrate the point…

US F-16, Balkans 1999

Elbit Systems of America, LLC in Fort Worth, TX has been producing F-16 related components for over 2 decades; indeed, that’s how the US subsidiary got its start in the aviation market. It wasn’t a huge stretch, as Israel’s F-16s contain a lot of Israeli electronics. That expertise has translated into service and export sales, including production in and for the F-16’s original home market.

Elbit Systems of America, LLC recently announced a $38.5 million, 5-year, indefinite-delivery/ indefinite-quantity from the US Defense Logistics Agency-Ogden, with $3 million in initial orders. In return, they’ll supply Electronic Module Assemblies (EMA) for Wide Angle Conventional Head- Up Displays (WAC-HUDs), to equip all USAF F-16C/D Block 30 and Block 50 cockpits. Elbit says that their new design is the result of a partnership with the USAF, adding that the result reduces total part count, lowers power consumption, and significantly improves mean time between failures (MTBF). All of which translates into lower life-cycle costs.

• Boeing begins shipping WGS-4 to Cape Canaveral, FL, in preparation for a January 2012 launch. It’s the first Block II Wideband Global Satcom satellite.

• The US Army is evaluating its latest build of field networking equipment, after the 3-week NIE 12.1 event. The spring 2012 event will test NIE 13, which will include the new WIN-T Increment 2 on-the-move networking system.

• Update on India’s aerial tanker plans.

• Point Trading’s misleading & deceptive conduct case against ITL Optronics and Elbit Systems will be heard solely in Australia, and is moving ahead under a recent Federal Court of Australia decision. The dispute concerns a long-term contract for the right to sell thermal vision devices to the Australian military. Key takeaway: “An exclusive jurisdiction clause does not deprive an Australian court of its jurisdiction to try the proceedings,” when the proceedings by their nature refer to Australian laws.

• The US Senate resumes debate on the FY12 authorization bill today.

• According to the Project on Government Oversight, DoD IG Gordon Heddell announced last week that he will step down on December 24.

• NATO’s strike on Pakistani troops is worsening an already tense situation.

• Japan would like China’s help in investigating the source of a cyber attack against Mitsubishi Heavy Industries, but nobody is holding their breath. Meanwhile the British MoD is setting up a Joint Cyber Unit involving private contractors. Video below:
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(click to enlarge)

In September 2010, Elbit Systems Ltd. announced a $280 million communications modernization contract from the Israeli Ministry of Defense. About $140 million will be invested in new communications equipment over the next 5 years, with the other $140 million paid over 20 years to upgrade and maintain existing systems. Per Israeli requirements, a key part of the project will be performed in a “development area” (here, the Southern Israeli city of Arad), as part of the Israeli Government’s policy to develop industries in the periphery. Elbit Systems.

Israel has been implementing its Tsayad/DAP next-generation communications system over the last few years, in order to enable its different military branches to communicate more easily. It is currently nearing the end of Phase 1, and Elbit is the main contractor. This is not formally part of DAP, but it is complementary. Elbit and its subsidiary Tadiran Communications offer a wide range of radios, military computers, satellite terminals, and even battlefield command and control systems to the global marketplace. While they may lack the size and heft of Harris or Thales, they compete aggressively across a very wide range of systems, and have received substantial foreign orders.

• The 1st USAF CHIRP (Common Hosted Infrared Payload) launches aboard SES SA’s Orbital Star 2.4 variant satellite, riding an Ariane 5 rocket from the spaceport in French Guiana. It wasn’t easy, but this is the 1st time the USAF has hosted a military satellite payload on a commercial satellite, and their 1st wide field-of-view infrared staring payload. CHIRP will power on in 30 days, and begin experiments.

• The USA’s 1st JHSV fast transport catamaran, USNS Spearhead, has been christened at Austal’s Mobile, AL yard.

• Alenia North America delivers C-27A tactical transports #12-14 to the Afghan Air force, from the 20-plane program.

• Pakistan has begun fielding Chinese Type 022/ Azmat Class Fast Attack Catamaran missile boats.

• Russia has reportedly given the go-ahead for full production of the SU-34 Fullback long-range strike fighter.

• Elbit Systems lands a contract for perimeter security systems at Haifa port, networked back to the Security Center. Israel has one of the world’s most advanced maritime surveillance systems – mostly based on shore.

• It’s done: United Technologies buys Goodrich for $16.5B ($18.4B counting net debt assumed). Meanwhile the Virginian-Pilot reports that General Dynamics plans to acquire the Metro Machine Corp. ship-repair facility in Norfolk.

• The US Office of the Director of National Intelligence (ODNI)’s Report on Security Clearance Determinations [PDF] states that 2.17M government employees held a confidential/secret clearance as of October 1st, 2010, and 666K were at the Top Secret level. Add private contractors and others gets you to 4.2M people, which the Federation of American Scientists notes is quite higher than previous estimates published by the GAO. Of course getting a clearance is different from keeping it.

• Barry Watts and Todd Harrison at the Center for Strategic and Budgetary Assessments (CSBA) look at how to sustain the US defense industrial base [PDF]. Step 5 – Acceptance: the US defense industry does not function like a free market. In order to maintain vital sectors of the industry, it is likely the government cannot rely just on private decisions and need to come up with its own strategy. This will involve defining what is and is not vital.

• The US House of Representatives did vote on a Continuing Resolution yesterday. It did not vote for it though: keeping the federal government funded through Nov. 18 failed 195-230. This stopgap measure will be looked at again tomorrow. Next week Congress will be on recess. Politico, The Hill, Bloomberg.

• In his list of recommendations [PDF] for the committee on deficit reduction, US Senator Ron Johnson (R-WI) seeks $1.4T in savings over 10 years. In his recipe: cut the workforce by 10% through attrition, freeze civilian pay until 2015, and cut the contractor workforce by 15%. Many of these come from Tom Coburn (R-OK)’s Back in Black plan from last July.

• Video of the day: 1st hearing from the House Armed Services Committee panel on defense industry challenges, embedded below, worries about small business market access, barriers to entry and deterrents to even bother selling to DoD:
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Keshef fires Cardom

In September 2011, Elbit Systems announced a 4-year, $40 million Israeli contract for its Soltam Systems Ltd. subsidiary’s “Cardom” (Eng. “Hatchet”) 120mm mortar systems. Built around Soltam’s 120mm recoil mortar system, Cardom can be fitted to any medium armored vehicle, offering advanced fire control, navigation, and automatic aiming/pointing capabilities. The USA uses it in wheeled M1129 Stryker MC APCs, for instance, though many elements can also be found in M1064 variants of the tracked M113.

Israel has used Keshet (Eng. “Bow”) M113 tracked APC variants as their Cardom platform, since the system was deployed with the Nahal Infantry Brigade in 2007. The recent arrival of precision 120mm mortar shells, such as IAI’s Fireball, or ATK’s APMI, adds precision to the 120mm mortar’s traditional virtues of simplicity and low cost. That’s especially important for armies who want to use mortar fire in urban combat, but wish to limit civilian casualties.

• Bulgaria is looking for 8-12 new fighters, and the USA has a financing offer for its F-16s. Other contenders include the JAS-39 Gripen leased by Bulgaria’s neighbors, EADS’ Eurofighter, and even a Russian offer to sell NATO-interoperable MiG-29s (something the Israelis also offer). Bulgaria just signed a MiG-29 repair contract with RAC MiG, but the country has had financial issues with past weapon buys, and the government is in no hurry to buy new fighters.

• British forces are beginning to use Raytheon-BBN’s Boomerang III acoustic sniper detectors in Afghanistan.

• Brazil’s Embraer, and Elbit Systems’ local AEL subsidiary, enter a 51%/49% joint venture. Harpia Sistemas S.A. will focus on UAVs like Elbit’s Heron 450, along the lines of a previous agreement. It will also handle simulators and avionics modernization, where AEL has carved out a strong Brazilian niche.

• Dassault’s Brazilian presentation lists the UAE as a country flying twin-engine fighters. Just one thing: that isn’t true yet, unless they order Dassault’s Rafale (or the F/A-18E/F Super Hornet) to replace their single-engine Mirage 2000-9s. Dassault had a team in the UAE trying to close the Rafale deal last weekend (Les Echos, in French).

• WABEP (Wirksystem zur abstandsfähigen Bekämpfung von Einzel und Punktzielen) UAV double-teaming: Germany has run tests involving Rheinmetall’s KZO reconnaissance drone working with IAI’s Harop loitering kamikaze UAV. WABEP demonstrated data & imagery exchange between the UAV operators, and the ability to pass targeting information to the Harop.

• Australia’s $10,000 DSTO Eureka prize goes to University of Wollongong prof. Salim Bouzerdoum, for a radar that can see through walls and edit out background clutter inside.

• That’s nothing. India’s DRDO R&D agency has gone and invented…. a skin cream. “Lukoskin” will fix that vitiligo condition for ya.

• ATK moves HQ to Arlington, VA.

• Affordable acquisition? Lt. Gen. William Phillips, Principal Military Deputy to the Assistant Secretary of the Army (Acquisition Logistics and Technology), wants more upfront feedback from industry on likely costs, while Stuart Hazlett, Deputy Director, Program Acquisition and Strategic Sourcing, said competitive bids that receive a single answer will be resolicited for another 30 days. Meanwhile an audit by the DoD’s Inspector General shows overpricing by Sikorsky on Black Hawk spare parts (Bloomberg, DoD IG PDF).

• The Super Committee approved its rules during its 1st meeting (video embedded at the bottom of this entry). Most future meetings will be public, but possibly not all of them. A memo from Democratic staff listing possible options didn’t seem primarily focused on defense. Senate Minority Whip Jon Kyl (R-AZ) asserted he would quit the panel if further defense cuts were made part of its deliberations. Groups such as the Sunlight Foundation don’t like that most Supercommittee members have fundraisers lined up in the fall.

• Leon Panetta, who told NPR the budget was getting most his attention, will meet members of the Aerospace Industries Association’s next week to argue in favor of sustained budgets. Todd Harrison at the CSBA says the DoD budget could fall by 31% over the next decade in the most aggressive scenario (see his brief from last month).
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• How Israel speeds up its counterstrikes using UAVs – and spycraft, and back-end IT. Also serves as an overview of their entire aerospace ISR set.

• Elbit Systems’ UT-30 unmanned 30mm turret has completed acceptance testing on Brazil’s new VBTP Guarani wheeled armored vehicle.

• Patria will make protective armor plates for Finnish NH90-TTH utility helicopters.

• Raytheon’s MALD-J jammer missiles have finished a simulated electronic attack test, clearing the way for a USAF decision on production.

• The Senate Appropriations Committee recommends keeping the FY12 DoD base budget at the same $513B level enacted for FY11, coming $26B below the President’s $539B request and $17B below the $530B in the H.R. 2219 appropriations bill passed in the House last July. These numbers exclude $115+B in overseas contingency operations. Most other budgets in the Senate Appropriations Committee’s proposal remain about flat save the Department of State which would see a base cut of about 7% to $44.6B. Given 12 working days are left in Congress before the end of FY11, most observers agree Congress will have to resort to a Continuing Resolution for several weeks. House Armed Services Committee (HASC) Chairman Buck McKeon (R-CA) concurs.

• Speaking of which, armed with an emotional video, McKeon wants the Super Committee to “leave us alone.” Congressmen Dave Loebsack (D-IA and HASC member), Mike Quigley (D-IL) and Jim Renacci (R-OH) introduced legislation to guarantee the Deficit Committee’s independence and transparency. Probably too late to be made into law, but might weight on how things unfold.

• Meanwhile, the Foreign Policy Initiative (FPI), the American Enterprise Institute (AIE), and the Heritage Foundation – a rather conservative bunch – are hosting today (Thursday) a “Defending Defense” conference that Chairman of the House Armed Services Readiness Subcommittee J. Randy Forbes (R-VA) plans to attend. But deputy assistant secretary of defense Brett Lambert said that, industrial base or not, contractors will have to deal with budget cuts.

• French MinDef still looking for 230 million euros (~$325M) or about 2/3rds of France’s over-budget costs occurred in Libya. Zone Militaire (in French).

• In the 1st video below, Military & Aerospace Electronics likes the fact Tactical High Energy Lasers (THEL) could fit on ships where machine guns are currently located, without littering the deck with bullet casings. The 2nd video below released by the Office of Naval Research (ONR) back in April shows laser effectiveness still requires a fair amount of cooperation from the target:
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