Rolling Sales: Indonesia Becomes the Latest Buyer of German Tanks

Leopard 2A6

In August 2012, reports emerged that Indonesia had made a deal with Germany to buy heavy tanks and infantry carriers, after the Dutch had demurred. The Indonesian Army has a long record of human rights abuses, which sparked considerable opposition in the Netherlands. In contrast, Germany has been pushing hard for defense exports as a way to keep its defense industrial base busy, and of preserving jobs amidst Europe’s economic slowdown.

In May 2013, those reports were finally confirmed. What is the exact shape of the deal? How will the new vehicles fit with, and compare to, Indonesia’s existing equipment? And how did we get to this point?

From Dolphins to Destroyers: The ScanEagle UAV

ScanEagle launch

ScanEagle’s base Insight UAV platform was originally developed by Washington state’s Insitu, Inc. to track dolphins and tuna from fishing boats, in order to ensure that the fish you buy in supermarkets is “dolphin-safe”. It turns out that the same characteristics needed by fishing boats (able to handle salt water environments, low infrastructure launch and recovery, small size, 20-hour long endurance, automated flight patterns) are equally important for naval operations from larger vessels, and for battlefield surveillance. A partnership with Boeing took ScanEagle to market in those fields, and the USMC’s initial buy in 2004 was the beginning of a market-leading position in its niche.

This article covers recent developments with the ScanEagle UAV system, which is quickly evolving into a mainstay with the US Navy and its allies. Incumbency doesn’t last long in the fast-changing world of UAVs, though. Insitu’s own RQ-21 Integrator is looking to push the ScanEagle aside, and new multiple-award contracts in the USA are creating opportunities for other competitors. Can Insitu’s original stay strong?

Brazil’s F-X2 Fighter Competition

Upgraded F-5EM

Could the words “Brazilian fighter” begin evoking images unrelated to the Gracies? Recent boosts to Brazil’s defense budget could be on its way to accomplishing that and more. The Navy and Army have already received funds to replace broken-down equipment, and new fighters will be a critical centerpiece of the Forca Aerea Brasileira’s efforts.

Boeing’s F/A-18 E/F Super Hornet, France’s Dassault’s Rafale, Saab’s JAS-39 Gripen NG were picked as finalists. But after repeated stalling, the question is whether Brazil will actually place an order, or fold up the competition like the ill-fated 2011 F-X process.

This free-to-view DID Spotlight article covers Brazil’s reborn F-X2 competition, adds its assessment of the competitors’ relative strengths and weaknesses, and covers ongoing events.

Slovenian Army’s New APCs: Patria’s AMVs

Slovenian “Svarun”

In June 2006, the Slovenian Ministry of Defence picked Patria’s 8×8 wheeled Armored Modular Vehicle (AMV) as the preferred choice for its 135 vehicle armored personnel carrier program. The APCs would come in 4 different versions, including a variant with Patria’s new unmanned NEMO 120mm mortar turret. The deal was worth over EUR 275 million, with deliveries to take place from 2007-2013.

An ongoing bribery investigation led to the resignation of Patria’s President and CEO, and eventually to his arrest. A long-running controversy became a continuous distraction, and there were issues with sub-contractor performance along the way. In 2011, a new government cabinet unanimously voted to try and cancel the deal. In 2012, they succeeded.

India’s Multi-billion Dollar Scorpene Sub Contract

Scorpene cutaway

India’s submarine fleet currently consists of 16 boats: 10 Russian SSK Kilo (Sindhugosh) Class, 4 locally built SSK U209 (Shishumar) Class, a leased nuclear-powered Improved Akula Class SSN from Russia (INS Chakra), and its own INS Arihant SSBN. Most of the Kilos have been modernized, but readiness rates for India’s existing submarine fleet sits below 40%, and the U209s will have trouble lasting much beyond 2015. With Pakistan acquiring modern submarines, and Chinese submarine building exploding, expanding India’s submarine fleet became an obvious national priority.

In 2005, India confirmed that it would buy 6 Franco-Spanish Scorpene diesel submarines, with an option for 6 more and extensive technology transfer agreements. Unfortunately, 7 years after that deal was signed, “Project 75″ has yet to field a single submarine. A poor Indian procurement approach, and state-run inefficiency, are pushing the country’s overall submarine force toward an aging crisis. This DID FOCUS article covers the Scorpene deal and its structure, adds key contracts and new developments, and offers insights into the larger naval picture beyond India.

INS Vikramaditya: Waiting for Gorshkov…

Adm. Gorshkov: Before.

This free-to-view DID Spotlight article offers an in-depth look at India’s troubled attempt to convert and field a full-size aircraft carrier, before time and wear force it to retfrb 21/08ire its existing naval aviation and ships.

India faced 2 major challenges. One was slipping timelines, which risked leaving them with no aircraft carriers at all. The other challenge involved Vikramaditya’s 3-fold cost increase, as Russia demanded a re-negotiated contract once India was deeper into the commitment trap. The carrier purchase has now become the subject of high level diplomacy, involving a shipyard that can’t even execute on commercial contracts. A revised deal was finally signed in March 2010, even as deliveries of India’s new MiG-29K naval fighters got underway – but now Russia still has to make good. This article tracks the changes India is making to its new aircraft carrier, key characteristics, and a full history of contracts and events affecting this carrier and its planned aircraft contingent.

NH90: Europe’s Medium Helicopter Contender

NH90: TTH & NFH

The NH90 emerged from a requirement that created a NATO helicopter development and procurement agency in 1992 and, at almost the same time, established NHIndustries (62.5% EADS Eurocopter, 32.5% AgustaWestland, and 5% Stork Fokker) to build the hardware. The NATO Frigate Helicopter was originally developed to fit between light naval helicopters like AW’s Lynx or Eurocopter’s Panther, and medium-heavy naval helicopters like the European EH101. A quick look at the NFH design showed definite possibilities as a troop transport helicopter, however, and soon the NH90 project had branched into 2 versions, with more to follow.

The nearest equivalent would be Sikorsky’s popular H-60 Seahawk/ Black Hawk family, but the NH90 includes a set of innovative features that give it some distinguishing selling points. Its combination of corrosion-proofing, lower maintenance, greater troop or load capacity, and the flexibility offered by that rear ramp have made the NH90 a popular global competitor.

As many business people discover the hard way, however, success can be almost as dangerous as failure. NH Industries has had great difficulty ramping up production fast enough to meet promised deliveries, which has left several buyers upset. Certification and acceptance have also been slow, with very few NH90s in service over a decade after the first contracts were signed. Booked orders have actually been sliding backward over the last year, and currently stand at 474 machines, on behalf of 14 nations.

Super Hornet Fighter Family MYP-III: 2010-2014 Contracts

Breakthrough…

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 program as a whole, with a focus on 2010-2015 Super Hornet family purchases. It has been updated to include all announced contracts and events connected with MYP-III, including engines and other separate “government-furnished equipment” that figures prominently in the final price.

Airfields Afloat: The USA’s New Gerald Ford Class Super-Carriers

USA’s Nimitz Class &
UK’s Invincible Class

Some nations have aircraft carriers. The USA has super-carriers. The French Charles De Gaulle Class nuclear carriers displace about 43,000t. India’s new Vikramaditya/ Admiral Gorshkov Class will have a similar displacement. The future British CVF Queen Elizabeth Class and related French PA2 Project are expected to displace about 65,000t, while the British Invincible Class carriers that participated in the Falklands War weigh in at just 22,000t. Invincible actually compares well to Italy’s excellent new Cavour Class (27,000t), and Spain’s Principe de Asturias Class (17,000t). The USA’s Nimitz Class and CVN-21 Gerald R. Ford Class, in contrast, fall in the 90,000+ tonne range. Hence their unofficial designation: “super-carriers”. Just one of these ships packs a more potent air force than many nations.

Nimitz Class cutaway

As the successor to the 102,000 ton Nimitz Class super-carriers, the CVN-21 program aimed to increase aircraft sortie generation rates by 20%, increase survivability to better handle future threats, require fewer sailors, and have depot maintenance requirements that could support an increase of up to 25% in operational availability. The combination of a new design nuclear propulsion plant and an improved electric plant are expected to provide 2-3 times the electrical generation capacity of previous carriers, which in turn enables systems like an Electromagnetic Aircraft Launching System (EMALS, replacing steam-driven catapults), Advanced Arresting Gear, and integrated combat electronics that will leverage advances in open systems architecture. Other CVN-21 features include an enhanced flight deck, improved weapons handling and aircraft servicing efficiency, and a flexible island arrangement allowing for future technology insertion. This graphic points out many of the key improvements.

DID’s CVN-21 FOCUS Article offers a detailed look at a number of the program’s key innovations, as well as a list of relevant contract awards and events.

Britain’s RAF Buying up to 10 MQ-9 Reaper UAVs

RAF MQ-9, armed

On Jan 3/08, the US DSCA announced [PDF] the United Kingdom’s official request for:

“10 MQ-9 Unmanned Aerial Vehicle (UAV) aircraft, 5 Ground Control Stations, 9 Multi-Spectral Targeting Systems (MTS-B/AAS-52), 9 AN/APY-8 Lynx Synthetic Aperture Radar/Ground Moving Target Indicator (SAR/GMTI) systems, 3 Satellite Earth Terminal Sub Stations (SETSS), 30 H764 Embedded Global Positioning System Inertial Navigation Systems, Lynx SAR and MTS-B spares, engineering support, test equipment, ground support, operational flight test support, communications equipment, technical assistance, personnel training/equipment, spare and repair parts, and other related elements of logistics support. The estimated cost is $1.071 billion.”

So, what’s happening? Britain is now using its Reapers in armed mode, and is buying more UAVs within its requested order.