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Elbit Turns Initial Mikal Stake Into Targeted Acquisitions

Elbit

African sale for ATMOS howitzers. (April 6/11)

In June 2009, Elbit Systems in Haifa, Israel, agreed to pay $18 million for a 19% stake in fellow Israeli defense firm Mikal Ltd., the country’s 2nd largest privately owned defense conglomerate. The Mikal group operates through 3 main divisions: Soltam Systems, which supplies artillery, mortars, and ammunition; Saymar, which supplies armored fighting vehicles; and ITL Optronics, which supplies sensors for soldiers, unmanned aerial vehicles, military vehicles and battle management systems.

By August 2010, however, the acquisition had shifted to a targeted buy of several Mikal properties. The move will consolidate Elbit’s position in a number of sectors, offering the prospect of close links between its sensors, targeting systems, UAVs, and front-line battlefield platforms….

US Army Wants 120mm Guided Mortars for the Front Lines (APMI XM395)

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ATK PGM
ATK’s PGM

APMI full production contract. (Feb 3/11)

The US Army is pushing to get precision mortars developed and deployed to the field in Afghanistan as soon as possible. Mortars are lighter and can be towed by a HMMWV or MRAP, or carried and fired from inside M113 or Stryker APCs, making them easier to deploy than heavier cannon artillery.

When indirect fire support is needed against enemies who are dug in along mountain ridgelines and other high positions, or in an urban area where which building you hit matters a great deal, getting the job done requires precision artillery. That capability has already come to MLRS rockets (M30/31 GMLRS, ATACMS), and 155mm artillery shells (Excalibur), and has been deployed to great effect on the front lines by American forces and their allies. Now it is coming to the USA’s 120mm mortars as well.

MASS for Effect: The UK’s Long-Term Ammo Contract

UK 81mm mortar
81mm mortar
(click to view larger)

Improved 5.56mm; New production facility opening. (Jan 19/11)

A weapon without ammunition is useless, which is why ammunition is almost always a strategic national capability whose production must remain in-country. On the other hand, government demand has a tendency to swing up and down within narrow limits, and the demands of efficiency usually lead to a single supplier situation – often using equipment that dates back to World War 2. The USA has run into problems because of its reliance on a single small arms ammunition plant, for instance, and has moved to modernize and diversify its base. Its ally Australia is modernizing key ammunition facilities, and trying to modernize its industrial approach as well.

Then there’s Britain, whose long-term defense contracting practices are establishing world-class benchmarks. The UK MoD had been working on an arrangement that secures national supply needs from British sources, and ensures that modernization investments continues to improve industrial efficiency. Hence the new 15-year, GBP 2+ billion “Munitions Acquisition Supply Solution” (MASS) program, inaugurated in August 2008…

Dutch Sign 10-Year Ammo Agreement with Rheinmetall

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PzH 2000NL
PzH 2000NL firing,
Afghanistan

In December 2010, the Dutch Ministerie van Defensie signed a 10-year, EUR 200 million (about $270 million) framework agreement with Rheinmetall Defence that lets the Netherlands order a wide range of different ammunition and pyrotechnic types, from bullets and propellant charges to grenades. The first order was actually placed at the end of 2010, and involved modular propellant charges for the army’s PzH 2000NL self-propelled 155mm howitzers.

This contract replaces several existing agreements. The Dutch Army already relies on Rheinmetall for nearly all its ammunition needs, including practice and service ammunition in multiple calibers. Assured access to supllies at short notice is therefore part of the agreement. So, too, is external storage and management. The end result moves toward more of a “just in time” ammunition supply model. As a bonus, the Dutch MvD no longer has to pay value-added tax on purchases within this contract.

Dutch and German cooperation between their defense procurement groups forms a related facet of this partnership. The Dutch DMO and German BWB will undertake joint development, testing, purchasing and storage for 6 ammunition types: 44 mm and 76 mm grenades, 120 mm tank shells, 155 mm PzH-2000 howitzer ammunition, and Panzerfaust rockets. They will also share test data, and make use of each other’s testing facilities and equipment. As an initial example, a Dutch PzH-2000NL that is already in South Africa for long range and precision ammunition tests, which cannot be performed at any range in Europe, will be used by the Germans for their own tests. All results from both countries’ tests will then be shared. MvD [in Dutch | English] | Rheinmetall Defence.

Iraqi Security Forces Order of Battle, Jan 2011

DJE Map
(c) DJ Elliott

DJ Elliott is a retired USN Intelligence Specialist (22 years active duty) who has been analyzing and writing on Iraqi Security Forces developments since 2006. His Iraqi Security Forces Order of Battle is an open-source compilation that attempts to map and detail Iraqi units and equipment, as their military branches and internal security forces grow and mature. While “good enough for government use” is not usually uttered as a compliment, US Army TRADOC has maintained permission to use the ISF OOB for their unclassified handouts since 2008.

This compilation is reproduced here with full permission. It offers a set of updates highlighting recent changes in the ISF’s composition and development, followed by the full updated ISF OOBs in PDF format. Reader feedback and tips are encouraged. Recent developments include:

Rapid Fire: 2010-12-17

  • Pretty please: Pentagon chief Gates says failure of Congress to pass $1.1 trillion FY 2011 omnibus spending bill (which includes defense) would jeopardize “vital military requirements.” BTW, FY 2010 ended Sept 30/10.
  • BAE System snags GBP 5.5 million UK MoD contract to supply 4,000 rounds of the Luma IR infrared artillery shell for the 105mm Light Gun currently in service with UK forces in Afghanistan.
  • People watching: The Pentagon’s top acquisition chief, Ashton Carter, is among a number of defense executives named to the top 20 people to watch in government contracting by ExecutiveBiz.

Both Barrels: Finnish Order Launches Patria’s AMOS Mortar Turret

AMOS on AMV
AMOS on AMV

Patria’s twin-barreled AMOS 120mm mortar turret is about to begin production, thanks to an order from the Finnish government for an initial set of 18 systems, for fielding in 2013. The EUR 120 million development contract was signed in 2003, and the most recent amendment begins series production. Patria.

AMOS has a range of just 10 km, which is typical for mortars but short for artillery. It makes up for that shorter reach by using the same ammunition as infantry mortar teams; and by traveling on an armored vehicle that can move into range, under fire, without ever exposing the crew. Firing can commence within 30 seconds of reaching the desired position, and the combination of twin barrels and modern system allow it to fire multiple rounds that all land in the target area at the same time (MRSI). To date, AMOS has been integrated with Patria’s AMV wheeled APC, BAE’s popular CV90 tracked IFV, and small boats. Patria has also developed a lighter, less expensive single-barrel version called NEMO, which has already received orders from some export customers.

Rapid Fire: 2010-11-24

  • Weapons bazaar: Afghanistan could look to buy military equipment from non-NATO countries if NATO supplies prove insufficient, President Karzai said. Of course, they’re already doing that in several areas, like helicopters. Wonder what China would offer for more mineral concessions?
  • US NAVAIR receives an initial 11 JSOW-C1 glide bombs with moving target capability, per the JSOW Block III contract.
  • Hurt Locker: Face shields on helmets could reduce brain injuries from explosives.

Australia’s A$ 450M-600M LAND 17 Artillery Replacement

105mm M2A2 Australia Towed
Now: M2A2 105mm

Self-propelled Phase 2 delayed – will it be abandoned? (Oct 8/10)

In February 2006 the Australian Government gave first pass approval for the replacement of the ADF’s current 105mm and 155mm artillery pieces with new, more capable, artillery systems that feature improved mobility, protection, range and accuracy. Current systems are all towed, and include the aged 105mm M2A2, the L119 Hamel 105mm Field Gun, and the M198 155mm Howitzer. Options for replacing them include a mix of self-propelled artillery systems and lightweight towed artillery systems under an A$ 450-600 million project known as LAND 17. The project will also examine advanced high precision munitions and a networked command and fire control system.

So, how does this project fit into Australia’s larger defense plans? What’s the expected program timeline? And who are the declared and potential contenders? That matters even more now that the solicitation has been released. DID covers the program, and a number of the confirmed or likely competitors… but one category has now been decided.

  • The LAND 17 Program
  • LAND 17: Likely Contenders
  • Contracts & Key Events [updated]
  • Additional Readings & Sources
    Continue Reading… »

Rapid Fire: 2010-09-22

  • Sweden signs a contract to begin production of MBDA’s Meteor air-to-air missile, with a significantly longer reach than available Raytheon AIM-120 AMRAAMs. The UK MoD manages the Meteor project, on behalf of 6 nations.
  • Iron Dome Plans: Israel could deploy IAI’s Iron Dome rocket/artillery defense systems in north of country when they become operational in November, says IDF chief.
  • Caterpillar gets contract [PDF] worth up to $641.2 million to supply 621G wheeled tractor scrapers, used in building roads and airfields, to the US Marine Corps and US Army – the largest military contract ever secured by the Peoria, IL-based company.
  • Kaman, a Bloomfield, CT-based supplier of aircraft and missile and bomb components, raises up to $350 million through an “accordion” revolving credit line.