30-Jun-2008 17:21 EDT
Related Stories: Alliances, Americas - USA, Asia - Central, Issues - International, Issues - Political, Official Reports, Policy - Procurement
The USA’s GAO is now the “Government Accountability Office” instead of the “Government Accounting Office,” but audits are still its focus and core competence. Since 2001, Pakistan has received about $5.56 billion in Coalition Support Funds (CSF) for its efforts to combat terrorism along its border with Afghanistan, or 81% of all global CSF reimbursements. In geo-strategic terms, keeping Pakistan’s military happy must be the priority, conditional on having reason to believe they have the desire and ability to be effective at carrying the fight to al-Qaeda and Taliban strongholds in Pakistan. On the other hand, the GAO’s report and testimony includes items like:
- More than $200 million for air defense radars submitted and reimbursed under CSF;
- Defense reimbursed Pakistan approximately $55 million for maintenance of the Pakistani army’s MI-17 utility and AH-1 Cobra attack helicopter wings in the border area from July 2006 – Feb 2007, while the Pakistani army was not maintaining them, causing poor readiness rates for these critical assets;
- An average of more than $19,000 per vehicle per month for Pakistani navy reimbursement claims that appeared to contain duplicative charges for a fleet of fewer than 20 passenger vehicles;
- Paying Pakistani navy claimed for boats about half of the time and disallowing others, despite no discernible differences in the level of documentation provided;
Hence the GAO’s recent report and testimony, which looks at the issues in the context of the CSF framework, and expected future requests from Pakistan….
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30-Jun-2008 12:21 EDT
Related Stories: Americas - USA, Contracts - Awards, Contracts - Modifications, Eng. Control Systems, Expeditionary Warfare, FOCUS Articles, Forces - Marines, New Systems Tech, Northrop-Grumman, Policy - Doctrine, Policy - Procurement, Power Projection, R&D - Contracted, Raytheon, Surface Ships - Combat

LHA-R Concept
(click to view full)
Modern U.S. Navy Amphibious Assault Ships project power and maintain presence by serving as the cornerstone of the Amphibious Readiness Group (ARG) / Expeditionary Strike Group (ESG). A key element of the Seapower 21 doctrine pillars of Sea Strike and Sea Basing, these LHA/LHD ships transport, launch, and land elements of the Marine Expeditionary Brigade (MEB) via a combination of LCAC hovercraft, amphibious transports and vehicles, helicopters, and aircraft.
Designed to project power and maintain presence, LHA-Replacement (LHA-R, aka. LH-X and now the America Class) large deck amphibious assault ships will replace the LHA-1 Tarawa Class. They’re based on the more modern LHD Wasp Class design, but remove the LHD’s landing craft and well deck. The end product is essentially a revival of the World War 2 escort carrier concept, with integrated berthing, cargo, and light vehicle spaces for Marines. LHA-R ships will be almost 80 feet longer than USS Wasp and 10 feet wider, since they don’t have to fit through the Panama Canal. As a result, these ships will weigh in at 50,000 tons/ 45,700t fully loaded rather than 42,400t full load for LHD 8. Though DID uses the term “escort carriers” due to the size of their aerial complement, note that their overall displacement will be larger than France’s 43,000t FNS Charles De Gaulle nuclear powered aircraft carrier.
This is DID’s FOCUS Article concerning the America Class…
30-Jun-2008 11:15 EDT
Related Stories: BAE, Britain/U.K., Events, Industry & Trends, Other Corporation, Partnerships & Consortia, Policy - Procurement, Surface Ships - Combat
Almost a year after the original July 25/07 Heads of Terms, BAE Systems plc has now finalized a legally binding Framework Agreement with VT Group plc (‘VT’) to establish a joint venture (JV) which will be the UK’s premier provider of surface warships and through-life support. This is part of the sector rationalization pushed by the UK ministry of Defence as part of its Defence Industrial Strategy, and was a precondition for its CVF carrier program.
BAE Systems, VT and the Ministry of Defence (MoD) also signed a non binding Heads of Terms on July 25/07 for a Terms of Business Agreement (ToBA) for the surface warship sector. The ToBA will set out a 15-year partnering arrangement which will offer a defined forward workload of design, build and through-life support work. The JV will be the UK Government’s strategic partner for the design, build and support of future warships, and will also pursue export opportunities. It targets total net savings to the government in excess of GBP 700 million (currently about $1.4 billion) to be shared 70/30 between the MoD and the JV. These net savings, and the extent to which the JV will benefit, remain to be seen in practice.
It is intended that the JV will comprise the following assets…
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26-Jun-2008 11:36 EDT
Related Stories: Americas - USA, Boeing, Contracts - Modifications, Engines - Aircraft, Helicopters & Rotary, Issues - Political, New Systems Tech, Other Corporation, Policy - Procurement, Rolls Royce, Spotlight articles

(click to view full)
The V-22 program has been beset by controversy throughout its 20-year development period, from crashes that have killed more than 20 Marines, to engine stalls, to issues with their AE1107C Liberty engines in Iraq that may lead to the end of Power By the Hour maintenance arrangements, or even replacement of the Liberty engines altogether. DID’s “V-22 Osprey: A Flying Shame?” offers a focused look at a number of specific allegations associated with the program, with material from Pentagon test reports, critical reviews, and the US military’s responses.
Despite these issues, the program continues to move forward. In March 2008, the Bell Boeing Joint Project Office in Amarillo, TX received a $10.4 billion modification that converted the previous advance acquisition contract (N00019-07-C-0001) to a fixed-price-incentive-fee, multi-year contract. The new contract will be used to buy 141 MV-22 (for USMC) and 26 CV-22 (Air Force Special Operations) Osprey aircraft, including associated manufacturing tooling in support of production rates.
This DID article will cover V-22 multi-year purchase contracts, developments that arise after this contract conversion, and associated contracts for key V-22 systems. The latest contract involves support services, and yet another spares order…
25-Jun-2008 20:10 EDT
Related Stories: Americas - USA, Boeing, EADS, Europe - France, Europe - Other, Events, Issues - International, Issues - Political, Legal, Northrop-Grumman, Official Reports, Policy - Procurement, Specialty Aircraft, Transport & Utility

Darkest before dawn?
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The USA’s aerial tanker fleet is the backbone of American global air power, but its youngest KC-135 planes were built over 40 years ago. Replacing them is the USAF’s #1 priority, and the initial KC-X phase of 175 operational aircraft amounts to a $35 billion buy. When EADS Airbus and Northrop Grumman’s A330 MRTT was picked over Boeing’s KC-767 on Feb 29/08, therefore, the shockwaves were felt around the world. DID’s members-only Insider article “The USAF’s KC-X Aerial Tanker RFP” offers full coverage of the RFP, the decision, and subsequent events.
The most recent event has sent shockwaves of its own, however, and deserves its own depth coverage. As everyone predicted, the losing firm immediately launched a protest with the Congressional Government Accountability Office. The GAO has no power to compel the Air Force, but the US military usually works to comply with GAO decisions in order to minimize political difficulties. Those difficulties have just increased significantly, however, as the GAO sustains Boeing’s protest and pours fuel on the smoldering discontent among many Congressional representatives. The implications extend beyond the USA’s borders, and into the global defense industry as a whole. Now, the full decision has been released – and the Air Force may be about to try to bull its way through to an award by the end of the year, using the same playbook it tried the CSAR-X helicopter contract…
- The Summary
- The GAO Release
- The Full Decision [NEW]
- The Way Ahead: Analysis [updated]
- Additional Readings & Sources
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25-Jun-2008 15:26 EDT
Related Stories: Africa, Americas - USA, Boeing, Europe - France, Europe - Other, Finmeccanica, Helicopters & Rotary, Issues - Political, Lobbying, Middle East - Israel, Middle East - Other, Other Corporation, Policy - Procurement, RFPs, Russia, United Technologies

A129 ATAK
(click to view full)
Turkey has been looking to modernize its attack helicopter fleet since the mid-1990s, but the process has mostly served as an object lesson in how not to buy defense equipment. DID has covered difficulties with this competition before; after numerous snafus, technology transfer and production issues, and canceled competitions, all 3 invited American manufacturers had abandoned the competition entirely.
Even the most recent “final” round seemed imperiled, following reports of the Turkish military’s deep dissatisfaction with the choices; nevertheless, the competition survived long enough to pick a “winner”: an updated version of its A129. Now, signed industrial arrangements contracts with AugustaWestland allow the 12-year program to move forward at last. But Turkey didn’t just buy helicopters – they bought the model, lock, stock, and rotor, in a transaction that has just completed…
- The Finalists
- The Winner
- Contracts & Key Events
- Appendix A: “I Coulda Been A Contenda…”
- Additional Readings and Sources
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23-Jun-2008 15:09 EDT
Related Stories: Americas - Other, Budgets, Contracts - Intent, Fighters & Attack, Force Structure, Issues - Political, Policy - Procurement
Canada’s military personnel have a reputation for being well-trained, but the state of their equipment and capabilities had become much bleaker after decades of neglect. Significant emergency purchases were required to secure the equipment needed for operations in Afghanistan, and despite being the second largest country in the world, the state of its military airlift capability was poor and deteriorating at all levels. Recent years have seen something of a turnaround, especially the funding injection and the beginning of major airlift (C-17, C-130J) and helicopter (CH-47D, CH-47F) projects in 2005-2006, and the shift away from wheeled armored vehicles to tracked tanks and M113s. Budget 2006 provided $5.3 billion over 5 years to sustain operations, acquire new equipment, and expand both the Regular and Reserve Forces, and ratcheted planned spending by $1.8 billion annually starting in 2011-2012.
Decades of neglect cannot be fixed overnight, however. Over 50% of the country’s military infrastructure is over 50 years old. On the equipment side, Canada’s Tribal Class destroyers, City Class frigates, CP-140/P-3 maritime patrol aircraft, Buffalo fixed-wing search and rescue aircraft, CF-18 fighter aircraft, and land combat vehicles and systems (other than tanks) will all reach the end of their service lives and need to be replaced at varying times over the next 20 years.
To this end, the Conservative Party of Canada led by Prime Minister Stephen Harper is proposing a long-term funding framework that would increase defense spending by about $600 million per year over the next 20 years. Nevertheless, the nature of its timelines, and of Canada’s political system, must both be considered as one evaluates this plan… which is now available in more detail, online.
19-Jun-2008 20:20 EDT
Related Stories: Alliances, Europe - E.U., Europe - France, Events, Force Structure, Industry & Trends, Issues - International, Issues - Political, Nuclear Weapons, Official Reports, Policy - Procurement, Radars, Satellites & Sensors, Submarines, Surface Ships - Combat, Transformation, UAVs, WMD Defenses
“Il n’y a pas de liberte, il n’y a pas d’egalite, il n’y a pas de fraternite sans securite.”
—French President Nicolas Sarkozy
In June 2007, “France’s Sarkozy Softening on Defense After Electoral Stumble” covered debate around France’s future armed forces, and apparent backtracks in his campaign position regarding future defense spending. In July 2007, President Sarkozy put together a group that was tasked it with creating a White Paper to define France’s future defense policy. The last time an exercise of this type had been conducted was in 1994.
That group has now returned with its report, and on June 17/08, President Sarkozy made a speech outlining the key elements of that future direction. The decisions made will change the shape of French defense spending, and will launch an attempt to implement an interlocking set of procurement, infrastructure, and political reforms and changes.
Key decisions and statements included…
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15-Jun-2008 18:50 EDT
Related Stories: Americas - USA, Australia & S. Pacific, Britain/U.K., Contracts - Awards, Contracts - Intent, Contracts - Modifications, Europe - Other, FOCUS Articles, Finmeccanica, Force Structure, Forces - Marines, Forces - Special Ops, Issues - Political, Lobbying, Lockheed Martin, New Systems Tech, Official Reports, Partnerships & Consortia, Policy - Procurement, Procurement Innovations, Support & Maintenance, Support Functions - Other, Transport & Utility

RAAF C-130J-30, flares
(click to view full)
Most American planes rely on the US market as their base, then seek exports. The privately-developed C-130J “Super Hercules” was different. Australia, Britain, Denmark, and Italy were all ahead of the curve, and have been operating this heavily redesigned upgrade of the popular C-130 Hercules transport aircraft for several years. By the time the C-130J finally reached “initial operating capability” for the US military late in 2006, these faster-moving foreign customers were already banding together to create a common upgrade set for their serving fleets. A number of variants are currently flying in transport (C-130J), stretched transport (C-130J-30), aerial broadcaster (EC-130J), coast guard patrol (HC-130J), aerial tanker (KC-130J), and even hurricane hunter weather aircraft (WC-130J).
Canada, India and Norway recently moved to join the global C-130J customer base. In America, meanwhile, some momentum is building. C-130J purchases are taking place under both annual budgets and supplemental wartime funding, in order to replace a US tactical transport fleet that’s flying old aircraft and in dire need of major repairs.
The C-130J 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?
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 latest news includes a new MC-130J variant to compete for US Special Operations Command’s solicited requirement – which has now come through via a significant order…
15-Jun-2008 17:13 EDT
Related Stories: Asia - Central, Australia & S. Pacific, Contracts - Awards, Europe - Other, Field Reports, Force Structure, Issues - International, Policy - Procurement, Procurement Innovations, Remote Weapons Systems, Support & Maintenance, Thales, Trucks & Transport, Warfare - Lessons, Warfare - Trends

Dutch Bushmasters’
first Afghan patrol
(click to view full)
Despite ongoing US procurement of M1151/M1152 Hummers, the retreat from Jeep-like vehicles is accelerating among Western militaries. Insufficiently protected against land mine threats in modern conflict zones, and insufficiently protectable due to inherent design limitations, conventional vehicles like G-Wagens, Land Rovers, and HMMWVs are being replaced in manufacturer lineups and military acquisitions by more protectable truck-based models, or by dedicated mine-resistant patrol vehicles. DID has covered the USA’s ramped-up purchases of M1117 Guardian ASVs, as well as its 15,000+ vehicle MRAP program that includes PVI/RAFAEL Golans, BAE’s RG-31s/RG-33s/Caimans, Force Protection’s Cougars, and Navistar/Plasan’s MaxxPro. We’ve also covered Iraq and Britain’s acquisition of Force Protection’s Cougar variants; Belgium’s buys of Dingo and Iveco Panther vehicles as the mainstays of its future fleet; Bulgaria’s purchase of M1117s; Canada’s emergency buy of RG-31 Nyalas and emergency order for mine clearance vehicles; Denmark’s order for MOWAG Eagle IV vehicles (no longer HMMWV-based like the Eagle III) and Duro trucks; Luxembourg’s Dingo-2 PRV reconnaissance vehicles, Norway and Spain’s emergency procurement of Iveco MLV/Panthers, and the Czech Republic’s November 2007 buy of Dingo-2s and Iveco MLVs. Public tenders for more vehicles will soon be underway in Spain and the Czech Republic, even as nations that were ahead of the curve continue to add to their stocks: Germany’s additional 149 KMW Dingo 2 vehicles, and Australia’s near-doubling of its original order by adding 293 Bushmasters, offer ample evidence of the seriousness with which they view the global trend toward IED land mines in conflict zones.

ISAF, S. Afghanistan
(click to view full)
During the summer of 2006, the Netherlands also adopted Australia’s Bushmaster IMV from Thales-ADI, a dedicated mine-resistant patrol vehicle that has proven itself with Australian forces in Iraq, to strengthen its Uruzgun force as NATO takes on greater responsibility in Southern Afghanistan.
The agreement was concluded in close cooperation with TWO friendly foreign governments, and it has just placed its 3rd order…
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