Latest update (Feb 6/12)

Basic Nuclear Propulsion
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This DII Spotlight article covers American nuclear propulsion industrial base contracts since the beginning of FY 2006. The USA has had an all-nuclear submarine fleet for over 50 years, a policy that dates back to the visionary Admiral Hyman Rickover. On the surface, America’s aircraft carriers became an all-nuclear fleet with the retirement of the USS Kitty Hawk [CV 63], and FY 2008-09 spending legislation pushed the US Navy to use nuclear power in its future CG (X) cruisers and new amphibious ship classes. At present, however, carriers are the only nuclear-powered American surface ships on the drawing board.

The civilian nuclear sector has seen major advances over the last 2 decades, and so has the military sector. The commitment to a nuclear fleet includes funding for those technical advances, as well as work to maintain both the reactors on board American ships, and the industrial base that supports them. This DID Spotlight article covers those efforts:

• Nuclear Naval Propulsion Around the World
• American Contracts (FY 2006 – Present) [updated]
• Additional Readings
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SUPSALV Diver

The US Navy’s SUPSALV isn’t glamorous, but they’re involved in a range of activities that include removing dangers to navigation, removing hazardous items (like oil & fuel) from sunken ships, and other underwater engineering. They’re also involved in emergency pollution and disaster response, including 2 of the decade’s most publicized American disasters. They’ve just released their Deepwater Horizon report [PDF] concerning the 2011 oil well disaster in the Gulf of Mexico. Meanwhile, lessons learned from Hurricane Katrina in 2005 have just led SUPSALV to field a containerized command post that’s 100% powered by renewable energy, so they can operate without being dependent on local fuel infrastructures

At the beginning of February 2012, US Naval Sea Systems Command in Washington, DC issued a pair of contracts worth up to $430 million.

• Latest from the Center for Strategic & International Studies (CSIS): Controlling Costs and Demanding Effective Program Execution [PDF, chart galore]; and a short memo [PDF] on evolving US-India relations. The author reckons India will want to get closer to Iran. The Washington Quarterly preemptively disagreed [PDF].

• Dassault Aviation released the most terse and self-restrained press release ever in the wake of the Rafale’s final selection for India’s MMRCA. The French business press and stock market were less subdued, but it is not a signed contract just yet. More details to come.

• Northrop Grumman reported sales of $26.4B in 2011, a $1.7B or 6% drop from 2010. Its aerospace, electronic and information systems all shrunk by a few percentage points while revenue from the smaller Technical Services dropped by 16%. Among other programs, lower-than-anticipated F-35 deliveries weighted on the aerospace division. The company has revisited the criteria it uses to state its total backlog. This change contributes $3B out of a $7.3B backlog decrease from the previous year, and brings the total down by 15.6% to $39.5B with a 59% funding ratio. NG excludes unexercised contract options and unfunded Indefinite Delivery Indefinite Quantity (IDIQ) orders from its backlog numbers.

• L-3 Communications’ sales for 2011 decreased by $511M (3%) to $15.2B. Growth in the C3ISR segment was not enough to compensate for lower sales elsewhere in the conglomerate. The funded backlog lost $396M (3.6%) to $10.7B.

• The US DoD announced [PDF] $18M in funds to 6 recipients for operational energy capability improvement.

• Catherine Ashton, head of the European Defence Agency (EDA), urged EU members to pool and share defense resources more aggressively but such calls have not been heeded much so far. Alignment of the British, French and Germans in the same project has proven elusive.

• The British MoD published its latest procurement and technology whitepaper [PDF], stating the intent to maintain science and technology spending at 1.2% or more of the defense budget. The report does mention in passing the EDA as well as NATO’s “Smart Defence” initiative, but its framework for cooperation with other countries will “generally favour bilateral collaboration on technology, equipment, and support issues, as we believe this offers the best balance of advantages and disadvantages. We will, however, continue to work multilaterally, for example through NATO or the EU, where this offers a clear benefit to the UK.” Coming later this year, a 10-year equipment plan.

• Defense Undersecretary for Policy Michelle Flournoy spoke at the Reserve Officers Association Symposium in the 1st video below. She toed the now familiar line from Panetta’s DoD. Flournoy will leave DOD at the end of the week.

• In the 2nd video below, CSBA’s Todd Harrison on the impact of projected FY13 cuts on the US Navy’s equipment and personnel:
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• Full 2011 financial results: Textron saw growth at Bell, revenue decrease at Textron Systems. At $7.3B, Bell’s backlog has recovered from a reporting error announced by the company last quarter.

• Meanwhile General Dynamics generated $32.7B of revenue last year. It has potentially almost 3 years worth of revenue in backlog depending on how its indefinite quantity contracts pan out. Aerospace revenue grew but combat, marine and IT systems lost ground, translating into an almost flat topline for the prime contractor.

• Raytheon wrapped up 2011 with slightly lower revenue ($24.9B) but higher bookings ($25.2B) than the previous year. Its backlog rose by $700M to $35.3B though most of that growth is not appropriated yet.

• The RAND Arroyo Center is rather bullish on the potential for UAV logistics applications such as convoy overwatch and other surveillance tasks, but reminds decision makers that bandwidth is going to be critical. Note: the study doesn’t cover the use of UAS for Army resupply, separate research that General Dynamics was tasked with.

• According to the Guardian the British government is considering selling its RAF Norholt to possibly be converted into a satellite of the nearby Heathrow airport. Philip Hammond was Secretary of State for Transport before he replaced Liam Fox last October.

• The Stockholm International Peace Research Institute (SIPRI) notes that defense budgets in Latin America have been growing faster than institutional transparency on policy, let alone on spending.

• BAE Systems and Caterpillar Inc. have signed a 20-year supply agreement to integrate the Cat CX family of transmissions into its HybriDrive parallel propulsion system, and use it to outfit and retrofit heavy trucks. It’s a civilian deal – but the same technologies can be used on military armored vehicles, and the civilian sector is pioneering this technology.

• The German Bundeswehr has a video covering the Boxer MRAV wheeled 8×8 APC’s 1st combat deployment to Afghanistan.

• The US Army is concerned about Facebook use. Yes, it can endanger lives, they say. People in the security community need to use it responsibly, and they have some tips.

Breakthrough…

Add-on to MYP-III buy; MYP-III tracking. (Jan 25/12)

The US Navy flies the F/A-18 E/F Super Hornet fighters, and has begun operating the EA-18G Growler electronic warfare & strike aircraft. Many of these buys have been managed out of common multi-year procurement (MYP) contracts, which aim to reduce overall costs by offering longer-term production commitments, so contractors can negotiate better deals with their suppliers.

The MYP-II contract ran from 2005-2009, and was not renewed because the Pentagon intended to focus on the F-35 fighter program. When it became clear that the F-35 program was going to be late, and had serious program and budgetary issues, pressure built to abandon year-by-year contracting, and negotiate another multi-year deal for the current Super Hornet family. That deal is now final. This entry covers the Super Hornet family’s 2010-2015 purchases, and has been updated to include all announced contracts and events connected with MYP-III, including engines and other separate “government-furnished equipment”....

• Hornet MYP: Aircraft Types
• The MYP-III Buy [updated]
• Contracts & Key Events [updated]
• GFE: Ancillary Contracts & Developments
• Future Hornets?
• Additional Readings
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WANTED: stuff like this…

US Army initiatives. (Jan 18/12)

On July 25/06 Al-Anbar commander and U.S. Marine Corps Maj. Gen. Richard Zilmer submitted an MNF-W priority 1 request. It pointed to the hazards inherent in American supply lines, and noted that many of the supply convoys on Iraq’s roads (up to 70%, by some reports) were carrying fuel. Much of that fuel wasn’t even for vehicles, but for diesel generators used to generate power at US bases. That is still true, and Afghanistan has even more daunting logistics. By some estimates, shipping each gallon of fuel to Afghanistan requires 7 gallons of fuel for transport.

A number of Pentagon projects use alternative energy at various installations, but Zilmer’s request is believed to have been the first formal request from a front-line commander. Not to mention the first formal request that acknowledges the security dimension of alternative energy sources, in response to the growth of “systempunkt” terrorism and the non-linear battlefield. It has not been the last.

• The Need on the Ground
• Options and Considerations
• Contracts and Key Developments [updated]
• Additional Readings
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• According to Bloomberg the FY13 President Budget submission date has been postponed from Feb. 6 to Feb. 13. Meanwhile House Majority Leader Eric Cantor (R-VA) is suggesting to chip at sequestration one year at a time if rolling back the whole 10 years proves too much of a hurdle.

• Sen. Claire McCaskill [D-MO] is pushing for FAA commercial certification of a civilian “BC-17” heavy transport aircraft. DoD Buzz doesn’t seem to understand that there’s a significant global market for outside cargo delivery, and that the C-17’s short takeoff & landing capabilities could be useful to industries like mining, that operate in austere locations with smaller airstrips.

• US Army installations get together to share progress toward “NetZero” energy & waste goals.

• The Royal United Services Institute for Defence and Security Studies (RUSI) looks at [PDF] the tax revenue implications of defense acquisition choices and finds that “the tax revenues are significant; they can yield to the Exchequer [DID: i.e. Treasury] over a third of the value of the contract.”

• France just bought [in French] 29 small Cobra Mk2 robots from Eca Robotics in Toulon, for use in finding and detonating land mines.

• US SOCOM’s 75th Ranger Regiment deploys to Afghanistan with GD’s AN/PRC-154 JTRS HMS Rifleman Radio, and Android-based Itronix GD300 wearable computers.

• Even a dying satellite has lessons to teach. GPS-IIA satellite SVN-30 is doing just that for the USAF.

• The US National Weather Services’ Advanced Weather Interactive Processing System (AWIPS) is now operational at the NWS Omaha Weather Forecast Office, the 1st of 135 forecast sites to upgrade. It’s a Raytheon system.

• 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.

Construction underway; Further details. (Jan 18/12)

At the end of September 2011, Sunpower Corp. in Richmond, CA, won a $100.3 million firm-fixed-price task order under a previous multiple-vendor award contract, for up to 30 years of electricity from a renewable energy generating system at Naval Air Weapons Station China Lake, CA.

Many consumers know Sunpower as one of the no money down firms that will install solar panels on your house. NAVFAC seems to be pursuing similar initiatives at Navy facilities. It’s government land, but Sunpower will build, own, and maintain the solar system under 10 U.S.C. 2922(a) authority…

• Latest on JSF: Reuters and Bloomberg report that Leon Panetta is about to announce that the F-35-B is off probation; Canadian industrial participation; 1st night flight; 3rd F-35B delivered; F-35C tail hook redesign.

• Israel’s IDF now believes that unrest in Syria has allowed Hezbollah to seize SA-8/ 9K33 vehicle-mounted surface-air missiles. They’re worried that Syria’s large chemical arsenal could also be vulnerable.

• K-Street Washington lobbyists see promise in the 2012 retirees, but how’s this for a blunt assessment? “Republicans are bonds. Dems are the options you play with the last 20 percent of your money…”

• The US Coast Guard is getting more and more interested in underwater inspection & surveillance. Their Research & Development Center is currently evaluating an advanced Underwater Imaging System (UIS) from CodaOctopus.

• Meanwhile, WSG has finished the initial demonstrations of their Argus One platform to the U.S. Department of Defense at the U.S. Department of Energy’s Nevada Test Site. Yes, this is our unmanned blimp, and yes, we are happy to see you.

• Could the same gas hydrates that caused the BP Deepwater Horizon’s blowup become a stable, low-energy input energy storage medium for hydrogen?

• Algorithms matter. Researchers have developed one that offers up to 10x improvement on the fast Fourier transform, widely used for tasks like image compression.

• Did the US Army’s policy of refusing to arm MEDEVAC helicopters, in a war against illegal combatants, cause the death of a US service member? Rep. Tom Akin [R-MO-2] is upset. The US Army responds.

• Undersecretary of Defense for Policy Michele Flournoy’s principal deputy Dr. James N. Miller will replace her when she leaves next month according to Yahoo News.

• Memo from the Pentagon: “Multiple U.S. Army Public Health Command studies of basic trainees have demonstrated that shoe selection based on arch type does not reduce injuries.” They do have a lot of soldiers running, so they ought to know a thing or 2. What follows are tips and cautions re: using new “minimalist” running shoes like the New Balance Minimus.

• It’s hard to call people who pay farmers 1/1,000th of their crop’s value Marxists, but FARC tries to wear the mask. Turns out they’re under pressure on the cocaine front, so they’re switching to… cattle rustling.