South African JAS-39D
c. Gripen International
(click to view full)

Swedish upgrade project, issue with India competition, BAE divesting, South African fleet just for show? (March 10/10)

As a neutral country with a long history of providing for its own defense against all comers, Sweden also has a long tradition of building excellent high-performance fighters with a distinctive look. From the long-serving Saab-35 Draken (“Dragon,” 1955-2005) to the Mach 2, canard-winged Saab-37 Viggen (“Thunderbolt,” 1971-2005), Swedish fighters have stressed short-field launch from dispersed/improvised air fields, world-class performance, and leading-edge design. This record of consistent project success is nothing short of amazing for a country whose population over this period has ranged from 7-9 million people.

This is DID’s FOCUS Article for background, news, and contract awards related to the JAS-39 Gripen (“Griffon”), a canard-winged successor to the Viggen that was built as one of the world’s first 4+ generation fighters. Gripen remains the only lightweight 4+ generation fighter type in service, its performance and operational economics are both world-class, and it has become one of the most recognized fighter aircraft on the planet. Unfortunately for its builders, that recognition has come from its appearance in Saab-Volvo TV commercials, rather than from hoped-for levels of military export success. With its 4+ generation competitors clustered in the $60-120+ million range vs. the Gripen’s claimed $40 million/ $50-60 million for Gripen NG, is there a light at the end of the tunnel for Sweden’s lightweight fighter?

• JAS-39: The Gripen Program
• JAS-39NG: A Way Forward?
• JAS-39 Gripen: Sales Opportunities
• JAS-39 Gripen: Major Events [updated]
• JAS-39 Gripen: Contracts & Awards [updated]
• Additional Readings & Sources
  
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USMC RG-31,
IEDed in Iraq
(click to view story)

Orders accompany 250 new RG-31A2s, RG-31s will have 2 different suspension upgrades. (March 3/10)

BAE OMC’s RG-31 was the first mine-resistant vehicle fielded by US forces in Iraq and Afghanistan, where it was used by the 101st Airborne (and reportedly by SOCOM) as a patrol vehicle. Since hostilities began, a series of orders have been placed by US forces through an odd triumvirate: General Dynamics Land Systems Canada was partnered with BAE OMC of South Africa and its GDLS parent in the USA. All contracts are signed through the Canadian Commercial Corporation, a Crown Agency of the Canadian Government (who also use RG-31s).

General Dynamics did reap 50% of every Cougar MRAP order to Force Protection, via the Force Dynamics partnership, but the RG-31 had been MIA in the MRAP competition. An August 2007 order for 600 more vehicles put General Dynamics back in the game as a distant 4th place producer, and other orders followed. Hopefully, US forces will be able to avoid the initial maintenance issues that have given Canadian RG-31s problems in Afghanistan. Thanks to 2 sets of new suspension upgrades, they also hope to mitigate the off-road issues created by a v-hull’s higher center of gravity.

• GD’s Other MRAP Entries: The RG-31 Family
• RG-31 MRAP Contracts [updated]
  
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A400M rollout, Seville
(click to view full)

Contract re-negotiation final, capabilities reduced, Spanish threat to Britain, EADS’ loss provisions, MSN1 flies to France. (March 6/10)

Airbus’ A400M is a EUR 20+ billion program that aims to repeat Airbus’ civilian successes in the full size military transport market. A series of smart design decisions were made around capacity (35-37 tonnes/ 38-40 US tons, large enough for survivable armored vehicles), extensive use of modern materials, multi-role capability as a refueling tanker, and a multinational industrial program; all of which leave the aircraft well positioned to take overall market share from Lockheed Martin’s C-130 Hercules. If the USA’s C-17 is allowed to go out of production, the A400M would also have a strong position in the strategic transport market, with only Russian IL-76 and AN-124 aircraft as competition. To date, 184 orders have been placed by Germany (60), France (50), Spain (27), Britain (25), Turkey (10), South Africa (8), Belgium (7), Malaysia (4), and Luxembourg (1); and Chile has expressed an unfinalized interest in 3 planes.

EADS firm’s biggest issue, by far, has been funding for a project that is more than EUR 7 billion over budget. The next biggest issue was timing, as A400M delivery penalties and Lockheed Martin’s strong push for its serving C-130J Super Hercules cast a pall over the A400M’s potential future. The entire project has been under moratorium for over a year as all parties decided what to do. Cancellation was not a realistic contractual option for most customers, but late deliveries could be refused, giving both Airbus and its customers negotiating leverage. This DID Spotlight article covers the latest developments, as the A400M project slides toward a new agreement, and production.

• The A400M Program: A Snapshot
• The A400M Program: Airbus’ Dilemmas
• Updates & Key Events [updated]
• Additional Readings
  
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FH-77Bs, Kargil War
via Bharat Rakshak
(click to view full)

A $647 million end run around India’s DPP?; additional background & structure; Rheinmetall’s offering, ULH tests to start soon. (Feb 15/10)

India has marked over $4 billion worth of artillery projects to purchase several hundred new 155mm howitzers. They’re intended to supplement India’s dwindling artillery stocks, while out-ranging and out-shooting Pakistan’s self-propelled M109 155mm guns. It seemed simple enough, and in the main towed artillery competition, BAE Systems Bofors had been competing against systems from Israel’s Soltam and Denel of South Africa.

Unfortunately, that competition and related artillery procurements have mostly served as cautionary tales, years-long affair filled with legal drama, accusations of corruption, and more than one re-start. Meanwhile, India’s stock of operational 155mm howitzers has dwindled to around 200. In 2007, a new towed howitzer RFP was issued, and the competition was expanded. Only to crash again in 2009. Is there an end in sight to any of these competitions? Or a potential winner?

• Towed Artillery Competition Saga
• The Other Indian Howitzer Competitions [NEW]
• Contracts and Key Events [updated]
• Additional Readings
  
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BAE’s Hawk:
over the top
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The UK’s Serious Fraud Office (SFO) has spent the last 6 years chasing BAE systems over allegations that bribes were paid to secure foreign deals in a number of countries. Bribes are the least of the allegations involved in some international defense deals, and contract wins without inducements would be far more surprising in countries like Saudi Arabia, Tanzania, and South Africa. Nevertheless, the UK does have laws to prevent British firms from paying them.

An SFO investigation into the giant Saudi Al-Yamamah aircraft deal was killed in December 2006 on national security grounds, after the Saudis threatened to cut off anti-terrorism cooperation and intelligence sharing. The government’s decision was upheld by the British House of Lords, but the SFO continued to pursue other reports concerning Chile, the Czech Republic, Romania, South Africa, Tanzania, and Qatar. The US Department of Justice, meanwhile, never let go of the Saudi deal.

BAE systems was reportedly been given about a month by the UK SFO to plead guilty concerning its activities in 3 countries, or face formal charges. Several months later, a settlement was reached that included the SFO – and the US DoJ, who got the lion’s share…

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Malaysian SU-30MKM
(click to view larger)

No new fighter competition, SU-30MKMs become more important as MiG-29Ns kept. (Feb 24/10)

In August 2003, Malaysia signed a T$900 million contract with Irkut Corp. for 18 SU-30MKMs. Malaysia flies the F/A-18D Hornet, and was offered Boeing’s F/A-18 E/F Super Hornet, but chose the SU-30MKM instead. The SU-30MKM is an advanced variant, whose performance involves considerable improvements over SU-30MK/MKK fighters. Canards, stabilizers and fins will be manufactured by India’s HAL Nasik under a $25-30 million value subcontract. According to the contracts in place, Irkut was to deliver all aircraft by the end of 2008, but delivery of the final batch is ongoing.

On May 24/07, a rollout and demonstration ceremony was held for the first 2 Su-30MKM fighters for the Royal Malaysan Airforce (RMAF) at Russia’s Irkutsk Aviation plant. Their fighter fleet will now consist of R/F-5E/F Tiger IIs (to be phased out), F/A-18D Hornets, MiG-29 Fulcrums (until 2015), and SU-30MKMs. The results from their internal training and air combat exercises would be interesting, to say the least.

• The SU-30MKM
• The Malaysia Deal: Offsets & Updates [updated]
• Additional Readings
  
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Michael Baker Jr., Inc., a Virginia Beach, VA-based engineering unit of Michael Baker Corp., won a $75 million maximum value, indefinite-delivery/ indefinite-quantity contract for multimedia environmental compliance engineering support for the US Navy and other US Department of Defense installations in the Northeast, Southeast and Mid-Atlantic continental United States and some overseas locations. These locations are within the Naval Facilities Engineering Command (NAVFAC) Atlantic’s areas of responsibility.

The maximum dollar value includes a base period and 4 option years.

Michael Baker Jr. will prepare studies, plans, specifications, design, reports, cost estimates and associated engineering services in support of the following environmental compliance programs:

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French Mirage F1s
(click to view full)

Morocco’s combat air force currently flies 2 squadrons of old F-5s, and 2 squadrons of only slightly newer Mirage F1s; T-37 light jets serve as key transitional trainers. Their neighbor and rival Algeria flies MiG-23s of similar vintage, but the Force Aérienne Algérienne also flies SU-24 Fencer and SU-25 Frogfoot strike aircraft, even more modern and capable MiG-29s, and is set to receive multi-role SU-30MKs as part of a multi-billion dollar weapons deal with Russia.

Morocco can’t beat that array. Instead, they’re looking for replacement aircraft that will prevent complete overmatch, and provide a measure of security. Initially, they looked to France. France’s Rafale is part of a set of European 4+ generation fighters that were developed and fielded during the 1990s-early 21st century, with the aim of surpassing existing offerings among America’s “teen series” fighters, as well as Russia’s MiG-29 Fulcrum and SU-27/30 Flanker family. “Dogfight at the Casbah: Rafale vs. F-16” discussed the French sales slip-ups that cost Dassault its first export order for the 4+ generation fighter. That outcome is now official.

Just to make things worse, the final multi-billion dollar deal involves new-build F-16s, at a price comparable to the rumored figures for the Rafale. Not to mention an accompanying American deal to replace Morocco’s T-37 trainer fleet with T-6Cs, and contracts for air-launched weapons, targeting pods, and C-27J short-haul transports. The latest development includes the main funding contract for 24 F-16s…

• Contracts and Key Events [updated]
• Why The F-16? DID Analysis – Dec. 2007
• Additional Readings
  
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FLIR Star SAFIRE III
thermal system image
(click to view larger)

FLIR Systems received a $6.7 million contract to supply infrared multi-sensor surveillance systems to unidentified customers in the Middle East and North Africa.

The surveillance systems are based on a commercially-developed/military-qualified (CDMQ) model that provides EO/IR products deployable on airborne, maritime, and land platforms.

FLIR is supplying its Star SAFIRE III and Ultra Series surveillance systems:

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Scratch one flag…
(click to view full)

In April 2005, South Africa’s Public Enterprises Minister Alec Erwin expected the cost of the SAAF’s 8 planned Airbus A400M medium-heavy military transport aircraft to be EUR 830 million. That converted to R 6.5 billion at those exchange rates, or about $177.75 million per plane in American dollars. South Africa reportedly intended to take delivery of 8 of the A400Ms from 2010-2014, with a further 6 on option. Ordering those additional 6 aircraft would reportedly have pushed the total contract value to EUR $1.5 billion, or about R11.9 billion at those exchange rates. When the deal was signed in December 2006, the price for 8 aircraft and initial fielding had risen to R 17.646 billion, or almost $2.5 billion: about $308 million per plane.

Meanwhile, South Africa bit the bullet and decided to upgrade its 8-9 aged C-130B Hercules planes. The first SAAF C-130Bs were delivered in 1963, and badly needed additional upgrades and refurbishment.

Subsequent delays to the A400M program were set to either extend the C-130Bs’ service, or force reliance on charters, even as the A400M’s likely costs grew. That SAAF aerial uncertainty has only grown, now that South Africa has become the first country to pull out of the A400M program.

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