• The Department of Defense releases Military and Security Developments Involving the People’s Republic of China 2011 [PDF]. While the report acknowledges China’s growing importance to peacekeeping and an array of international security operations, Taiwan remains the People’s Liberation Army’s (PLA) ‘main strategic direction’. State media reiterated that China’s defense policy is defensive in nature and criticized US interference over Taiwan.

• Boeing delivers three more F-15K Slam Eagles to South Korea.

• The Iranian Ambassador to Moscow hopes that the International Court of Arbitration will rule in favor of Tehran over the legality of Russia’s $800 million contract to supply Iran with S-300 air defense systems.

• Meanwhile, sources claim that Russia will next test-launch its Bulava (SS-NX-30) submarine-launched ballistic missile (SLBM) on the 27th August. The launch will be from the Borey Class Yuri Dolgoruky strategic nuclear submarine.

• Research and Markets adds Defense and Security in India 2011 Report to its list of publications. The report says India spent $39 billion on defense and security in 2010, and continues to look towards self-sufficiency. Publication also comes at a time when Robert Sher, Deputy Assistant of Defense for South and Southeast Asia, called US-Indian defense ties a ‘natural partnership’.

• Senators Kay Bailey Hutchison (R-TX) and Richard Shelby (R-AL) release a statement saying that the failure of the Russian Progress resupply mission to the International Space Station (ISS) underscores the need for American leadership in space and the development of the Space Launch System (SLS).

• As the Government Accountability Office (GAO) releases a report [PDF] on US initiatives to safeguard maritime energy security, analysts line up to argue that the US Navy should increase its focus on irregular warfare challenges.

• Interest in China’s J-20 stealth fighter continues at a relentless pace. A new set of photographs reveal the aircraft’s weapons bay. Photos have also emerged of the People’s Liberation Army Navy’s (PLAN) North Sea Fleet’s nuclear submarine base.

• While the Defense Advanced Research Projects Agency (DARPA) seeks to develop Mission-oriented Resilient Clouds (MRC), the Department of Defense (DoD) drags its heels over the implementation of ‘cloud computing’ initiatives.

• Concerns are raised that General Electric’s proposal to build a a $1 billion plant in North Carolina to support laser enrichment efforts may have implications for nuclear proliferation.

• South Korean media raises concerns that the country has insufficient radar systems to track long-range artillery attacks by North Korea. This is compounded by reports that six Swedish-made Arthur radars broke down 78 times last year, alongside ThalesRaytheon-made TPQ-36 and 37s malfunctioning on 98 and 60 times respectively over the past five years.

• India launches the frigate INS Satpura, the second indigenously-built stealth warship of the Shivalik class.

• The Israeli defense budget dispute continues unabated. The Defense Ministry claims that the budget is already ILS6.2 billion ($1.6 billion) under 2011/12 estimates. The Finance Ministry wants greater efficiencies within the defense establishment.

• Meanwhile, the Israeli Defense Forces’ (IDF) deployment of Rafael’s Iron Dome air defense system has prompted a change of tactics by militants in the Gaza Strip.

• Russia delays the next test-firing of the Bulava (SS-NX-30) submarine-launched ballistic missile (SLBM) until the end of August.

• As China’s profile in the UAV sector rises, state-run media shows the hand-held ASN-15 in action, supporting a People’s Liberation Army (PLA) main battle tank (MBT) unit.

• The US Navy’s Program Executive Office (PEO) Integrated Warfare Systems (IWS) announces that it has made $50 million-worth of savings in procuring weapons for new construction amphibious ships between FY2009-2011.

• The British House of Commons’ Public Accounts Committee (PAC) publishes a report warning that until the Ministry of Defence (MoD) implements the Future Logistics Information Services project the UK’s Armed Forces remain reliant on a supply chain susceptible to a ‘critical risk of failure’.

• The US Army awards General Dynamics a $107 million contract for unspecified combat, assault and tactical vehicles.

• Meanwhile, the US Navy awards Federal Cartridge Company a $46.5 million contract for 5.56m frangible ammunition.

• Russia is to build its second Tupolev Tu-214ON aircraft for international aerial inspections under the Open Skies Treaty [PDF].

• Saab says its Skeldar V-200 unmanned helicopter will soon be on the market in its land-based and maritime versions.

• Boeing announces that it will use a Ryan Aerospace Helimod helicopter simulator to train Australian Army pilots to fly Bell 206B-1 Kiowa helicopters.

• The right-wing Heritage Foundation think tank raises concerns that the Budget Control Act will jeopardize the US solid rocket industrial base via the Administration’s reluctance to modernize strategic missiles to replace or expand on the likes of the Minuteman III ICBM and Trident II D-5 SLBM.

• Data recently compiled by Bloomberg shows that ManTech, Northrop Grumman, General Dynamics and Lockheed Martin are among 9 companies that receive 70% of their revenue from the US government. Bloomberg also predicts that such companies have the most to lose from the recently announced budget cuts.

• A Russian defense industry insider claims that China’s fifth-generation J-20 fighter may be be based upon the Mikoyan 1.44 rejected by Moscow during its tender to develop a stealth fighter.

• Meanwhile Russia’s state-run Rosoboronexport reveals that it will sell $9 billion-worth of arms and equipment throughout 2011.  One customer could be Venezuela, whose President, Hugo Chavez,  today thanked Moscow for its help in re-equipping its armed forces.

• The website Spend Matters UK/Europe reveals that the UK Ministry of Defence (MoD) is paying US consulting firm Alix Partners almost £4,000 ($6,500) per day to help find savings in contract negotiations.

• Arguments over Israel’s defense budget continue, as the Defense Ministry accuses the Treasury of using defense expenditures to cover up its mistakes.

• CACI International reports Fourth Quarter FY2011 revenue of $963.2 million, a 13.5% increase on the corresponding period for FY2010. The US Department of Defense (DoD) accounted for almost $780 million in revenue.

• AEE Technology Co. becomes the first Chinese company to exhibit at AUVSI North America 2011. The company showcased its F50, an unmanned aerial vehicle (UAV) billed as capable of monitoring protests.

• Russia’s Morinformsystem-Agat JSC unveils its ‘Pandora’s Box’ cruise missile system. The company is marketing the system as a ‘take anywhere’ weapon capable of attacking naval and land targets with the Klub-K 3M 54TE missile.

• Brookings Institution and University of Maryland scholars tell the National Bureau of Asian Research that the United States and India should co-develop weapons technology to overcome technology transfer restrictions. They also argue that India’s rejection of US bids for its Medium Multi-Role Combat Aircraft (MMRCA) requirement was based upon worries over supply reliability.

• The UK Defence Infrastructure Organisation (DIO) announces the development of the National Training Estate Prime (NTEP) contract. The contract value may reach £900 million ($1.4 billion).

• The US Marines have doubled their AV8-B Harriers’ weapons loads in Afghanistan, by moving the planes’ LITENING target pod.

• The first 4 of 24 new F-16 C/D Block 52 fighter jets have left Lockheed Martin’s facility in Fort Worth, TX, on a ferry flight to Morocco.

• Turkey’s BMC is rumored to have orders for its blast-resistant Kirpi vehicle from Iraq and Afghanistan.

• Russia is planning to buy up to 120 Iskander-M (SS-26 Stone) tactical missile systems. Meanwhile, Russia’s Defense Ministry is reportedly putting the final touches to technical specifications for the replacement of its Voevoda (SS-18 Satan) intercontinental ballistic missile (ICBM).

• The Czech Defense Ministry is to impose sanctions on Omnipol because defects on its new EADS CASA C-295 turboprop transport aircraft have not been repaired on time.

• South Africa’s Hawk trainers are receiving upgrades; now they can also use GPS-guided Umbani glide bombs, with a 40km/24 mile range.

• A photograph emerges reportedly showing changes to China’s fifth J-10B prototype multirole fighter.

• Northrop-Grumman reports second quarter 2011 sales of $6.56 billion compared with $7.26B for the previous year’s period. Lower US Department of Defense (DoD) outlays among the factors identified as contributing to reduced quarter sales.

• Meanwhile, General Dynamics’ Second Quarter 2011 Results saw revenues totaling $7.9 billion, a decline from 2010’s figure of $8.1 billion. Orders for defense materiel contributed to a total backlog of $57.1 billion across all the company’s products.

• Following Beijing’s recent confirmation of its aircraft carrier program, a number of Asian countries reiterate their concerns over China’s naval buildup. Australia’s Minister of Defence uses his visit to the United States to re-emphasize the importance of India to the wider region.

• Lockheed Martin announces the launch of its High Altitude Long Endurance-Demonstrator (HALE-D) airship from the Airdock in Akron, Ohio. Despite a successful launch, a technical anomaly eventually forced the flight to be abandoned.

• Rolls-Royce’s Half-Yearly 2011 Results reveal that underlying profit before tax is up by 28% to £595 million ($973 million). The engine-maker also benefited from one-off contract termination settlements resulting from the UK’s Strategic Defence and Security Review (SDSR).

• BAE Systems is also confident that it has delivered a robust set of half year results in the face of challenging market conditions. The company reports headline sales of £9.2 billion ($15 billion), down from £10.6 billion ($17 billion) in 2010, and underlying earnings of £968 million ($1.6 billion).

• Thales’ 2011 first half results show a 48% increase in underlying earnings in comparison with last year’s figures. However, defense and security orders declined by 3% over the same time period.

• Russia test fires a RSM-54 Sineva submarine-launched ballistic missile (SLBM) in the Barents Sea. The SLBM was launched from the Yekaterinburg nuclear powered submarine.

• A Filipino man is expected to plead guilty to trying to sell a US Government-owned RQ11-A/B Raven UAV for $13,000 on eBay.

• As the UK announces its recognition of Libya’s National Transitional Council (NTC) as the ’legitimate governing authority’, pictures show the ‘Free Libyan Air Force’s’ MiG-21 fighters seemingly contravening the NATO no-fly zone.

• The Government Accountability Office (GAO) publishes Defense Department Cyber Efforts [PDF]. The report raises concerns about the DoD’s initial responses to cyber threats.

• A senior Israel Air Force Officer (IAF) tells an Israel Technology Group conference that the successful deployment of Rafael’s Iron Dome missile interception system in April prevented an escalation of conflict with the Gaza Strip.

• The US Army awards Hamilton Sundstrand a contract with a maximum potential value of almost $38 million for miscellaneous and unspecified communications equipment.

• Rheinmetall announces that the first basic version of its Acoustic Shooting Locating System (ASLS) is ready for the marketplace.

• Terrabon announces that it has been awarded a $9.6 million contract [PDF] to design a renewable jet fuel production solution for the Defense Advanced Research Projects Agency (DARPA). The Houston-based company’s MixAlco bio-refining technology will likely underpin research and development.

• The Center for Nonproliferation Studies’ (CNS) current Nonproliferation Review includes an article [PDF] stating that between 1997 and 2009 North Korea accounted for more than 40% of the 1,200 ballistic missile systems exports to the developing world.

• Australia’s Ministry of Defence signs a AUD25 million ($28 million) contract with Thales Australia for nine additional training simulators for army crews operating the Australian Light Armoured Vehicle (ASLAV).

• Boeing is working on a new vertical take-off and landing (VTOL) aircraft using jets called Pulse Ejector Thrust Augmentors (PETA), based on technology originally developed by Nazi Germany.

• The revival of the state-owned Fabrica Argentina de Aviones (FAdeA) continues following the recent announcement of the company’s upgrades for the IA-58 Pucara counterinsurgency aircraft.

• The Chairman of the House Armed Services Committee, Buck Mckeon (R-CA), says that the $866 billion spending-reduction proposal formulated by the ‘Gang of Six’ would not allow the United States to provide ‘safety and security’.

• Despite UK Defence Secretary Liam Fox’s recent announcement of plans to reduce troop levels from 101,000 to 82,000 by 2020, the Ministry of Defence (MoD) is struggling to attract voluntary redundancies, particularly from the Royal Navy and Air Force.

• Bidders for the US Army’s Common Infrared Countermeasure (CIRCM) program raise their game by declaring that the products on offer can be adapted for broader applications.

• Boeing holds an industry forum in Brazil to outline opportunities available as part of the company’s F/A-18 Super Hornet offering for the F-X2 competition.

• Russia has ordered two Sukhoi Su-30SM multirole fighters. The new version of the Su-30 is a modification of the Su-30MKI developed for the Indian Air Force. The Russian Air Force is looking to purchase an additional 30 aircraft.

• Meanwhile, Russia’s Chief of the General Staff, General Nikolai Makarov, says the country will move towards ‘virtual battlefield’ military training by 2013. The move is likely to be welcomed by Transas New Technologies, a Russian company that has already impressed Makarov with its battlefield simulation technology.

• India announces the successful test flight of its Prahaar short range tactical missile. The launch was conducted from the Integrated Test Range (ITR) in Orissa with the missile hitting a pre-designated target in the Bay of Bengal.

ATACMS from M270

Lockheed Martin Missiles and Fire Control in Grand Prairie, TX receives a $145.5 million firm-fixed-price contract modification to produce 130 ATACMS Block 1A export version T2K “unitary guided missile launching assemblies.” In English, that’s 130 MGM-140 ATACMS missiles and their launch container, which fits on compatible vehicles like the tracked M270 MLRS and truck-based M142 HIMARS. An ATACMS pod replaces a pod of 6×227mm guided rockets with a GPS-guided missile that can travel over 150 miles, delivering a 500-pound WDU18 unitary warhead at hypersonic speed. Export models will have to comply with the Missile Technology Control Regime, which limits range to under 300 km/ 186 miles.

The sale country was not named in this release, but the contract manager indicates a Foreign Military Sale. In recent years, public FMS requests for ATACMS missiles have been announced by the US DSCA for Bahrain, the UAE, and Taiwan. Armored M270 MLRS carriers with ATACMS missiles were also recently positioned near the border by South Korea, who can now hold the capital of Pyongyang at immediate risk if North Korean artillery decides to target Seoul.

Work will be performed in Grand Prairie, TX; Horizon City, TX; and Lufkin, TX, with an estimated completion date of Oct 31/13. One bid was solicited, with one bid received by the U.S. Army Contracting Command at Redstone Arsenal, AL (W31P4Q-07-C-0302).

• The Dutch Defense Minister, Hans Hillen, replicates outgoing US Defense Secretary Robert Gates and uses a Security and Defence Agenda event to call for a greater pooling of resources among NATO’s European partners.

• President Barack Obama tells a press conference that questions over whether he should have sought congressional approval for operations in Libya are ‘noise about process’. The President is also confident that he has fulfilled his commitment not deploy troops on the ground and that the United States has been supportive of operations led by other NATO members.

• The Chairman of the Joint Chiefs of Staff, Admiral Mike Mullen, tells the launch of the Fund for Peace’s 2011 Failed States Index that the United States can still provide aid to failed states, providing that Washington strikes the correct fiscal balance.
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