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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• US QDR 2010 (Quadrennial Defense Review) in bullet points. Plus, some questions to think about. And what about small business and innovation?

• US Army to spend $7 billion to develop replacement for cancelled FCS manned ground vehicles.

• Portuguese Institute of International Relations and Security (IPRIS) – Using BRIC to build at sea: The Brazil-China aircraft carrier agreement and shifting naval power [PDF].

• London-based IISS’s annual military balance report warns that cyber warfare threat is growing.

• Georgian satellite channel taken off-air by French firm as a condition of the proposed Mistral Class amphibious ship sale.

• Eurojet says it will share single-crystal engine blade technologies with India if Eurofighter wins MMRCA, or EJ200 engine is selected for the LCA Tejas Mk2.

• US Intel community funds power-generating silicone implants. No, really.

• Is a Golden Age of the Silicon Economy just ahead of us? That’s silicON – but if the above is true, we suppose it could be silicone…

• Northrop Grumman posts higher quarterly sales across nearly all of its businesses. What do the analysts have to say?

• Canada’s CAE gets C$58 million ($54 million) in Germany military contracts, including several contracts to provide flight simulator upgrade, maintenance and training support.

• Spiderman gets military assignment: DARPA’s web crawler device could enable US special ops forces to scale walls.

• IBM to develop secure cloud computing for US Air Force networks.

• US Air Force mulls $2 billion order for 100 light-weight armed counter-insurgency planes.

• The Royal Navy flagship HMS Illustrious arrives in Scotland to undergo a £40 million ($63 million) maintenance and upgrade program.

• Barak LR-SAM with 120 km range to fly in August 2010?

• Canada’s submarines – finally operational by 2012?

• Is a shortfall in the number of Pashto interpreters threatening the Afghan war effort?

Reaper, ready…
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Test variants for USAF, USCG; Gorgon stare pod; new Reaper weapon?; Comlink compromise; MQ-9 shootdown. (Feb 2/10)

The MQ-9 Reaper UAV, once called “Predator B,” is somewhat similar to the famous Predator. Until you look at the tail. Or its size. Or its weapons. It’s called “Reaper” for a reason – while it packs the same surveillance gear, it’s much more of a hunter-killer design. Some have called it the first fielded Unmanned Combat Air Vehicle (UCAV).

DID’s FOCUS articles offer in-depth, updated looks at significant military programs of record. The Reaper UCAV will play a significant role in the future USAF, even though its capability set makes the MQ-9 considerably more expensive than MQ-1 Predators, whose price benefits from less advanced design and volume production orders. Given these high-end capabilities, and expenses, one might not have expected the MQ-9 to enjoy better export success than its famous cousin. Nevertheless, that’s what appears to be happening. MQ-9 operators currently include the USA and Britain, who have both used it in hunter-killer mode, and Italy. Other countries are also expressing interest, and international deployments are accelerating.

• The MQ-9 Reaper, and its Little Brothers
• Contracts & Key Events, 2005 SDD – Present [updated]
• Additional Readings & Sources
  
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• Littoral Combat Ship: program updates.

• A British green paper calls for enhanced military cooperation between the UK and France. Industry says: what about R&D?

• India orders BEL’s Akash medium range surface-to-air missile systems.

• India issues turboprop trainer RFP, after instructors reportedly refused to fly HPT-32s.

• Up to 8 UAVs reported operating in Waziristan, Pakistan strike.

• Indian P-8i sea control aircraft may add air-air surveillance.

• Frost & Sullivan: Traditional defense contractors will lose market share to “disruptive companies” that offer “good enough” products at cheaper prices.

• China is threatening to sanction US companies that are involved in the US $6.45 billion weapons sale to Taiwan. Real, or a bluff?

• US Defense Secretary Gates warns Congress that if it makes substantial cuts to the administration’s budget request, the US military will have to “sacrifice” force structure and capabilities.

• USA’s coming rotorcraft crunch?

• US DISA awards Unisys a $187 million contract to provide mainframe computer capacity for USAF logistics.

• Who’s right on the US carrier fighter gap? Defense Secretary Gates or the Navy?

• Raytheon receives a $170 million foreign military sales order to produce AGM-65D and AGM-65G2 infrared-guided Maverick air-to-surface missiles for the UAE.

• Maritime laser clears 2 US design reviews.

• Thales wins 5-year training support sub-contract for Australia’s E-737 Wedgetail AWACS {DII}, 5-year avionics support sub-contract for France’s Rafale fighters.

• The US Navy stands up its new Fleet Cyber Command to oversee the service’s cyberspace operations. Google attacks termed a “wake up call” by DNI.

• Draper Lab gets $131.1 million contract to upgrade the guidance systems on the Trident II D5 missile.

F-35A: incoming…
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FY 2011 budget proposals, withheld performance fees, a change in program leadership, Australian reaction. (Feb 2/10)

The $300+ billion F-35 Joint Strike fighter may well be the largest single global defense program in history. This major multinational program is intended to produce an “affordably stealthy” multi-role fighter that will have 3 variants: the F-35A conventional version for the US Air Force et. al.; the F-35B Short Take-Off, Vertical Landing for the US Marines, British Royal Navy, et. al.; and the F-35C conventional carrier-launched version for the US Navy. The aircraft is named after Lockheed’s famous WW2 P-38 Lightning, and the Mach 2, stacked-engine English Electric (now BAE) Lightning jet. Lightning II system development partners included The USA & Britain (Tier 1), Italy and the Netherlands (Tier 2), and Australia, Canada, Denmark, Norway and Turkey (Tier 3), with Singapore and Israel as “Security Cooperation Partners.” Now the challenge is agreeing on production phase membership and arrangements, to be followed by initial purchase commitments in 2009-2010.

This updated article has expanded to feature more detail regarding the F-35 program, including contracts, sub-contracts, and notable events and reports. New material is highlighted by putting it in green type.

• The F-35 Family of Aircraft
• F-35 Program: Production Timelines & Structure
• F-35 Program: Controversies and Competitions
• F-35 Program: Events & Developments, CY 2009-2010 [updated]
• F-35 Program: System Development & Production Contracts, FY 2009-2010 [updated]
• F-35 Program: Ancillary and Sub-contracts, FY 2009 – 2010
• Additional Readings & Sources
  
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RAAF C-130J-30, flares
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$146 million for another year of USAF fleet engine support. (Feb 1/10)

The C-130 Hercules remains one of the longest-running aerospace manufacturing programs of all time. Since 1956, over 40 models and variants have served as the tactical airlift backbone for over 50 nations. The C-130J looks similar, but the number of changes almost make it a new aircraft. Those changes also created issues; the program has been the focus of a great deal of controversy in America – and even of a full program restructuring in 2006. Some early concerns from critics were put to rest when the C-130J demonstrated in-theater performance on the front lines that represented a major improvement over its C-130E/H predecessors. A valid follow-on question might be: does it break the bottleneck limitations that have hobbled a number of multi-billion dollar US Army vehicle development programs?

C-130J customers now include Australia, Britain, Canada, Denmark, India, Iraq, Italy, Norway, Oman, Qatar, and the United States. American C-130J purchases are taking place under both annual budgets and supplemental wartime funding, in order to replace tactical transport and special forces fleets that are flying old aircraft and in dire need of major repairs. This DID FOCUS Article describes the C-130J, examines the bottleneck issue, covers global developments for the C-130J program, and looks at present and emerging competitors.

• The (Private) Labors of Hercules: the C-130J
• The C-130J and the 20-ton Bottleneck
• Turbulent Flight: The C-130J Program
• Contracts and Key Events [updated]
• Additional Readings & Sources, incl. emerging competitors & Special Operations requirements
  
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C-17 over Hawaii
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The program will be restructured after 2012. (Jan 29/10)

While the C-17 may have limited production time in its future, the C-17 Globemaster Sustainment Partnership is likely to continue for many years. The rising cost of maintenance has made it a greater concern to the world’s militaries, and new contract vehicles are reflecting that. Under the C-17 Globemaster III Sustainment Partnership, Boeing has total system support responsibility for the big transport aircraft, including materiel management and depot maintenance, for fleets around the world. The goal is total aircraft sustainment support under a single contract, in order to achieve improvements in mission readiness, while reducing operating and support costs. The initial contract had an estimated total value of $4.9 billion, which is likely to grow as Boeing’s customer base grows in Australia (4), Britain (6), Canada (4), Qatar (2), and NATO (3).

This is DID’s in-depth, updated FOCUS Article covering this major international program, offering key statistics for the aircraft, explaining the GSP’s components, and detailing its contracts.

• The C-17 Globemaster III
• The C-17 Globemaster III Sustainment Partnership
• The C-17 PE/PI Program
• Contracts and Key Events, FY 2004-Present [updated]
• Additional Readings & Sources
  
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GR7s & Eurofighter
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Close air support remains an especially live issue on the modern battlefield, and it is once again affecting procurement discussions in Britain. “Field Report: British British GR7 Harrier IIs in Afghanistan” addressed the positive benefits of Britain’s Harrier force in theater. A 2006 controversy over their performance in the wake of a soldier’s email deserves equal attention, and has broader implications. In September 2006, newspaper reports described a leaked email from a British Major serving in Afghanistan, who reportedly said that:

“Twice I have had Harriers in support when c/s on the ground have been in heavy contact, on one occasion trying to break clean. A female harrier pilot ‘couldn’t identify the target’, fired 2 phosphorous rockets that just missed our own compound so that we thought they were incoming RPGs (rocket-propelled grenades), and then strafed our perimeter missing the enemy by 200 metres.”

Nor is that all. He reportedly added that “the US air force had been fantastic”, and “I would take an A-10 over Eurofighter any day.” The UK MoD responded at the time. Now, it seems that the controversy described back in 2006 is influencing procurement recommendations from the very top…

• Responses, and Updates [NEW]
• Appendix A: DID Thoughts/ Op-Ed (September 2006)
  
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Nimrod MR1 & E-3D AWACS
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Great Britain is conducting a parallel set of efforts to update its fleet. One multi-billion pound program seeks to upgrade 12 of its unique Nimrod Mk2 maritime patrol aircraft to Nimrod MRA4 status.

The other effort, named Project HELIX, sought to keep its related Nimrod R1 electronic and signals intelligence/ relay aircraft fleet flying until 2025. A 9 month assessment phase involving L-3, Lockheed, and Northrop-Grumman was down-selected to L-3 and Lockheed Martin in 2005. In April 2007, L-3’s team won the Phase 3 risk reduction contract, and became the preferred bidder for the main HELIX contract in 2009.

An October 2008 DSCA request cast doubt on that effort, by conveying Britain’s official $1+ billion request to field 3 RC-135V/W Rivet Joint ELINT/SIGINT aircraft. Now sources are saying that the deal is all but done…

• The RC-135 Rivet Joint
• Contracts and Key Events [updated]
• Other Options?
  
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New dawn?
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Implementation of Britain’s “future contracting for availability” approach of paying for machines in service, rather than parts and hours, generally involves a phased set of contracts and agreements. As each party’s understanding the risks and demands grow, the contract’s complexity and comprehensiveness grow as well, and the framework moves closer and closer to the desired goal of a full availability contract. “Britain Hammers Out Through-Life Support Framework for Tornado Fleet” described how this approach works on the ground, and talked about some of the keys to success. “UK’s “Contracting for Availability” Adds Hawks, Looks Ahead” mentioned the MoD’s March 2007 Long Term Partnering Agreement Foundation Contract with BAE Systems, which aims to place all British military aircraft under this kind of framework.

In late 2007, the UK’s Eurofighter Typhoon fleet entered Quick Reaction Alert service with the RAF, and began flying with new ground-attack capabilities [MoD | BAE]. In step with its growing operational responsibilities, the the Typhoon fleet began moving toward an availability contracting maintenance model. A 5-year contract signed in March 2009 accelerated that shift, and the Typhoon Availability Service has begun operations.

Recent events include the addition of a billion-dollar availability-based contract to maintain the fleet’s engines…

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