• Following the release of its annual assessment of China’s military power, a US Department of Defense official suggests that Beijing has also developed a ‘workable design’ of its DF-21D anti-ship ballistic missile. Meanwhile, China has continued its condemnation by saying the report indulged in exaggeration and ‘groundless suspicion’.

• Successful test of the CONECT upgrade to USAF B-52H heavy bombers; program on track to finish ground and flight tests in October 2011.

• EADS passes a half way point, delivers the 180th UH-72A light utility helicopter to the US military.

• The US Navy confirms the successful test-flight of a T-45 Goshawk trainer using biofuel.

• Following Hugo Chavez’s recent gratitude for Russian assistance in re-equipping Venezuela’s armed forces, diplomatic sources reveal that Moscow is preparing to loan Caracas an additional $4 billion for military purchases.

• The US Air Force awards Vision Systems International a $36 million contract for electrical and electronic equipment components.

• Rosoboronexport delivers 6 Mi-17 helicopters to Indonesia. A $56 million contract was signed by Jakarta and the state-owned corporation for the helicopters.

• The US military continues to reallocate hundreds of millions toward surveillance, mostly for Special Operations. But are they looking for ISR in all the wrong places?

• With the end of the Libyan conflict seemingly in sight, a number of interesting stories are beginning to emerge. France confirms the deployment of its EADS/IAI Harfang unmanned aerial vehicle (UAV) over Libyan airspace. Qatar also punched above its weight by providing military training and special forces.

• A senior Russian defense official claims that the Sukhoi T-50/PAK-FA stealth fighter will be the ‘principal plane’ of the Russian and Indian Air Forces.

• A new Pike Research report predicts that the military fuel cell market will reach $1.2 billion by 2017, an increase from $9 million in 2011.

• Moscow’s MAKS 2011 air show has prompted a number of developments concerning Russia’s military and defense industry. Russia’s Air Force is expected to receive 450 helicopters this year, including the Kamov Ka-52 Alligator. The state-run United Aircraft Corporation (UAC) plans to provide the Air Force with 20 new aircraft a year. UAC is also keen on securing a contract to supply the military with 10 Antonov AN-124 freighters.

• Western aerospace contractors keep at low profile at Taiwan Aerospace and Defense Technology Exhibition (TADTE) 2011. Boeing and General Electric miss the show altogether.

• Elbit Systems’ Second Quarter 2011 Results show revenues at $691.6 million, as compared with $603.3 million for last year’s corresponding quarter. C4I and airborne systems were leading contributors to the increase.

• Israel Aerospace Industries (IAI) is considering aerial refueling options for the upgraded version of its Heron unmanned aerial vehicle (UAV).

• The US Army awards an Omnibus III $497 million indefinite-delivery-indefinite-quantity (IDIQ) contract for the provision of support to the US Navy Medicine Research and Development (R&D) programs.

• Meanwhile, the General Services Administration (GSA) awards N~Ask Inc., BIT Systems and CACI Technologies an IDIQ contract worth up to $40 million for Signals Intelligence (SIGINT) Engineering Support Services (SESS II).

• Ukraine’s Arsenal Design Bureau claims to have developed a ‘world class’ infrared seeker for use on anti-ship missiles.

• The DoD Inspector General’s internal audit of DARPA contract awards will likely pay close attention to business conducted with RedXDefense, a bomb detection company co-founded by the current director of DARPA.

• The Naval Air Systems Command (NAVAIR) awards Lockheed Martin a $13 million contract to continue maintenance of the Tactical Tomahawk Weapons Control System (TTWCS). Should NAVAIR exercise the three remaining options, the contract value could rise to $50.2 million.

• A leaked report prepared by the UK Ministry of Defence (MoD) and Foreign and Commonwealth Office (FCO) says that the Royal Navy is ‘woefully unprepared’ for future operations within the Arctic Circle. There is particular concern that cold weather measures have not been built into warships, including the new Type 45 destroyers.

• The proposed merger between Israel Military Industries (IMI) and Rafael appears to have been cancelled by the Israeli Government, who will push instead for the privatization of IMI.

• Russia is to unveil its first strike UAV at next week’s MAKS 2011 air show. Vega will be showing a mock-up of the Lutch, a UAV based on the Sigma 5 piloted aircraft.

• Russia also announces the development of two new air defense systems. This includes the Vityaz [PDF] a further development of the S-300 medium-range air defense system already in service.

• Italian budget austerity looks set to hit its defense modernization hard, even as the country struggles to keep up with the demands of the war in Libya.

• Israel Aerospace Industries (IAI) will unveil its Ghost rotary mini UAV system at next week’s AUVSI Unmanned Air Systems North America 2011 show. The Ghost is designed to provide real-time intelligence to ground forces operating in urban areas.

• China ends months of intrigue and speculation by announcing that its first aircraft carrier has now left port to conduct sea trials.

• With $6,000 and a military surplus FMQ-117B target, you too can build a UAV that hacks phones and intercepts Wi-Fi signals. Bet the paparazzi will love that one. No word from Mr Murdoch yet.

• A recent meeting of the Defense Business Board at the Pentagon recommended the creation of a single Defense Logistics Organization (DLO) [PDF]. The Board argued that a single DLO with sole responsibility for supply, maintenance and transportation would increase logistics effectiveness and efficiency.

• The former Director of National Intelligence, Admiral (Ret.) Dennis Blair, tells the Aspen Security Forum that the United States should stop unilateral drone attacks and work in closer partnership with countries where unmanned campaigns are conducted. See embedded video at the bottom of this entry.

• Raytheon’s Second Quarter Results show net sales of approximately $6.2 billion, a slight increase on corresponding figures for 2010. The company’s Chairman and CEO attributes a strong second quarter performance to its ‘focus on execution and cost reduction strategies’.

• A US Marine Corps Officer tells the Lexington Institute’s Capitol Hill Electronic Attack Conference that the service is preparing to undertake tests on the new Intrepid Tiger II [PDF] communications intelligence and jamming pod.

• Israel and India are reportedly negotiating to buy 3 more IL-76 Phalcon AWACs aircraft, to follow the current order of 3. IAI had been touting the long-range G550 CAEW used by Israel and Singapore as an even better follow up.

• EADS attributes its ‘solid results’ for the first half year 2011 to strong demand in the commercial aviation sector. The company reports that revenues increased in the first six months of 2011 by 8% to €21.9 billion ($31.2 billion).

• Dassault accuses Safran of holding up talks in relation to the French Government-backed deal to swap assets with Thales.

• The US Army awards Olin Corporation a $29 million contract to provide Small Caliber Ammunition for Caliber .50, 7.62mm and 5.56mm.

• Russia is studying the possibility of deploying paratroopers as part of its multi-branch Arctic contingent.  This may be extended to helicopter regiments by 2020, when Russia’s arms procurement program is due to be completed.

• A number of blog articles have highlighted the problems the Indian Air Force faces in keeping its ageing fleet of Soviet-built fighters airworthy. This may have proved influential upon recent decisions taken in relation to India’s Medium Multi-Role Combat Aircraft (M-MRCA) competition.
  Continue Reading… »

• Airborne Mobility Command point to the increase in airdrops over Afghanistan over the past five years as evidence of the growing importance of  Joint Precision Aerial Delivery Systems (JPADS) to operations.

• The French Government’s agreement with Israel Aerospace Industries (IAI) and Dassault for the production and purchase of Heron TP long range UAVs is expected to cost $500 million.

• Elbit announces that the Israeli Ministry of Defence has awarded the company with a $40 million follow-on order for the Digital Army Program (DAP) [PDF].  The announcement comes as the Israeli Defense Forces (IDF) announces that it has embarked upon the follow-up phase of the DAP.

• A leaked memo written by the UK’s Chief of the General Staff appears to contradict assurances made by the Government that no more troops will be made redundant before the end of the Afghan campaign in 2015. The news comes after the United Kingdom National Defence Association (UKNDA) branded recent memo leaks as examples of deliberate disinformation from within the Ministry of Defence (MoD).

• Ahead of next month’s Operation Nanook 2011, Canada’s annual arctic military exercises, Defence Minister Peter MacKay reveals that the number of Canadian Rangers has increased since 2007.

• The US Navy deployment to Libya, counter-piracy operations off the coast of Somalia and budget issues make a similar response to the growing problem of West African piracy problematic.

• Taiwan reveals that a People’s Liberation Army Air Force (PLAAF) Su-27 fighter crossed the median line of the Taiwan Strait in late June. The Su-27 was in pursuit of a US U-2 reconnaissance plane. Taiwan responded by scrambling two F-16s to the area.

• Meanwhile China and South Korea will hold an inaugural defense dialogue in Seoul this week. News that Pyongyang tested its intercontinental ballistic missile prior to the attack on Yongpyeong Island may force North Korea onto the agenda.

• Reportlinker adds iCD Research’s Global Aerospace Industry Outlook Survey 2011-2012: Industry Dynamics, Market Trends and Opportunities, Buyer Spend and Procurement Strategies to its list of publications.

• The Chairman of the House Armed Services Committee, Buck Mckeon (R-CA), says that the $866 billion spending-reduction proposal formulated by the ‘Gang of Six’ would not allow the United States to provide ‘safety and security’.

• Despite UK Defence Secretary Liam Fox’s recent announcement of plans to reduce troop levels from 101,000 to 82,000 by 2020, the Ministry of Defence (MoD) is struggling to attract voluntary redundancies, particularly from the Royal Navy and Air Force.

• Bidders for the US Army’s Common Infrared Countermeasure (CIRCM) program raise their game by declaring that the products on offer can be adapted for broader applications.

• Boeing holds an industry forum in Brazil to outline opportunities available as part of the company’s F/A-18 Super Hornet offering for the F-X2 competition.

• Russia has ordered two Sukhoi Su-30SM multirole fighters. The new version of the Su-30 is a modification of the Su-30MKI developed for the Indian Air Force. The Russian Air Force is looking to purchase an additional 30 aircraft.

• Meanwhile, Russia’s Chief of the General Staff, General Nikolai Makarov, says the country will move towards ‘virtual battlefield’ military training by 2013. The move is likely to be welcomed by Transas New Technologies, a Russian company that has already impressed Makarov with its battlefield simulation technology.

• India announces the successful test flight of its Prahaar short range tactical missile. The launch was conducted from the Integrated Test Range (ITR) in Orissa with the missile hitting a pre-designated target in the Bay of Bengal.

Canada’s $3 billion frigate modernization program, which specifically aimed to exclude American technologies from key areas, was just one example of a growing problem for American defense firms. Major players in the defense industry have been pushing for years to change US ITAR export controls. Unfortunately, the USA’s use of export controls for protectionist and political purposes has had a predictable effect, and made American defense components toxic to some potential export customers. Even as cumbersome rules, and a slow American bureaucracy, add additional layers of export control across more than 3 different agencies. The end product is significant friction for important international deals, impediments to partnerships with friends and allies, and erosion of global market share for American defense products.

On April 20/10, American Secretary of Defense Robert Gates, backed by several other departments, crystallized a reform push that has been underway for years. The proposed “4 singles” approach would make significant changes to American technology export controls. Nor is that the only initiative underway:

• Export Controls’ Persistent Problems
• The January 2008 Presidential Directives
• The April 2010 “4 Singles” Reforms
• Recent Updates and Additional Developments (2009-) [updated]
• Additional Readings
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IAI Heron

Germany has just added itself to the list of countries leasing UAV services for the Afghan conflict, by signing a contract with Rheinmetall Defense and their partners at Israel Aerospace Industries to provide an unspecified number of Heron UAVs as the SAATEG (System zur Abbildenden Aufklarung in der Tiefe des Einsatzgebietes). Rheinmetall’s KZO tactical UAV began operating in Afghanistan in 2009, but the Heron is a larger UAV with much better endurance and payload.

• Airbus Military and IAI Elta are developing a C-295 AEW turboprop, using an Elta AESA radar. Its likely price point, and C-295M/MPA commonality will make it a serious competitor to turboprops like the E-2D Hawkeye and Saab 340/2000 Erieye - as well as mid-tier jet options like Brazil’s EMB-145 AEW&C, or IAI’s own Gulfstream G550 CAEW.

• BAE Systems announces the creation of a new Electronics Systems Sector. The reorganization sees the consolidation of BAE’s Systems Electronic Solutions and Systems Platform Solutions sectors. BAE hope the reorganization will better serve its military electronics and information technologies and homeland security customers.

• EADS signs a memorandum of understanding (MoU) with Turkish Aerospace Industries to boost collaborative opportunities for the UAV market.

• Turkish Aerospace Industries (TAI) also uses the Paris Air Show to unveil a prototype unmanned helicopter. The R-IHA is expected to achieve first-flight in 2012. TAI is also confident that the R-IHA will prove attractive to Arab and Southeast European markets.

• MBDA’s PARS 3 LR guided missile system has been shortlisted for the Indian Army’s helicopter future air-to-ground requirement. The announcement comes two months after three successful PARS 3 LR firings were conducted at Sweden’s Vidsel test range.

• Speaking at the Paris Air Show, the General Executive Manager of the Portuguese Aerospace Industry Association (PEMAS) says Embraer is the catalyst for the country’s emerging aerospace sector, but laments the decision not participate in the A400M program.

• Cobham’s Chief Executive tells Reuters at the Paris Air Show that the company is upbeat about further air tanker deals with the United States and Brazil.

• South Korea’s President meets with members of the National Assembly’s defense committee and asks for cooperation in gaining parliamentary approval for defense reforms. Plans focus upon making the military command’s structure more efficient and increased powers for the chairman of the Joint Chiefs of Staff over the Army, Navy and Air Force.

• The International Business Times outlines 9 ways the military is curbing its thirst for energy.

• MBDA unveils the CVS401 Perseus concept missile system. Cast as MBDA’s “vision of a multi-role strike weapon system for 2030 and beyond”, Perseus is designed to be operated through advanced Operations and Mission Planning Systems across all platforms.

• MBDA also announces a successful underwater test launch of France’s SCALP/MdCN cruise missile, which will equip the future SSN Barracuda fast attack submarine. A 2006 French contract for 250 missiles covered both ship and submarine launched versions.

• Centurum wins a performance-based contract to provide command and control systems support for new Department of Defense (DoD) integrated systems and networks. The potential cumulative value of this contract is an estimated $77 million.

• Speaking to a media roundtable at the Paris Air Show, the President and Chief Executive of Boeing reflected on the company’s recent fortunes within Asia’s defense markets.

• US KC-46A 767 tankers will carry Raytheon’s AN/ALR-69 radar warning receivers, and their anti-jam GPS receivers.

• Israel Aerospace Industries subsidiary ELTA Systems announces that it has sold compact intelligence, surveillance and reconnaissance aircraft to an unnamed Latin American customer. The ELI-3120 is used for a number of homeland security tasks including the deterring of arms and narcotics trafficking.

• Research and Markets publishes the Syria Defense and Security Report Q3 2011.

• Three days after the completion of Operation Sea Breeze 2011, an unidentified diplomat tells RIA Novosti that Russia should not be surprised by talks between Ukraine and NATO that discussed “everything but membership”.

• Defense Legislation outlines the options to address Members of Congress’ concerns about the United States’ ability to acquire rare earth elements used in various defense weapons systems.