AMV w. NEMO mortar
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Sweden’s FMV defense procurement agency recently selected Finland’s Patria for a EUR 240 million contract to deliver 113 AMV (Armoured Modular Vehicle) wheeled Armored Personnel Carriers (APCs) to the Swedish Armed Forces. The 27 tonne AMV has a crew of 3, and can carry up to 9 soldiers. A varied set of turrets and modules can configure it for different roles, from MEDEVAC through to IFV or even automated mortar carrier.

The Swedish contract covers 5 different versions, and also includes an option of additional 113 vehicles. The vehicles will be manufactured in Finland, with subcontractors in Finland and Sweden that will deliver industrial offsets. Swedish firms will also be used to provide long-term support. The vehicles will be delivered between 2011-2013, if the Swedish government approves the FMV’s decision.

A matter that has become moot, as a Swedish court nullifies the FMV’s choice and forces a re-compete…

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“Former Iraq Security Contractors Say Firm Bought Black Market Weapons, Swapped Booze for Rockets” says the ProPublica headline. They’re talking about a firm called Triple Canopy, a security contractor who replaced Blackwater (now Xe) as the US diplomatic service’s bodyguards in Iraq, and also had other contracts in theater to protect allied bases and installations, some of which were covered here.

Allegations and legal depositions state that the firm traded booze for weapons, and bought weapons and vehicles on the black market in Iraq between 2003-2004. At least one of those employees have expressed concern that the money used to buy these items may have ended up in the hands of Iraq’s Islamists, who were connected to criminal enterprises in Iraq at a number of different levels.

The article itself turns out to be more balanced than its headline might indicate, and the detailed accusations are linked to detailed responses; both are worth reading. Beginning with the revelation that significant responsibility for this state of affairs traces right back to the US State Department…

• State Department Self-Inflicted?
• Triple Canopy: Allegations & Approach
• Policy Issues
  
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“US Industry Associations Pushing to Reform Export Controls” covered a push from major players in the US defense industry to change US ITAR export controls. ITAR processes make it difficult to share information with their own international subsidiaries, to include American technology in bids for foreign contracts, or even to explore collaboration with foreign firms in allied nations. Many outside America also perceive the USA’s export regimes as tools uses as often for for protectionism and hindering business competitors, as for true security needs. American actions have sometimes fed and validated this perception. The result is a growing set of concerted efforts abroad to design American defense technologies out of foreign military systems, in order to avoid falling under ITAR controls.

At the same time, however, proliferation of advanced military technologies is nothing to be casual about. “Cut out” transfers via foreign subsidiaries and partnerships are more than possible, and the age of the rogue state appears imminent. What to do?

Fortunately, the answer of “nothing” no longer applies. Like President Bush, President Obama is taking up this issue. Unfortunately, cumbersome rules and a slow American bureaucracy are still costing the USA important international deals and partnerships. Even as the USA’s use of export controls for protectionist and political purposes begins to have the predictable effect of making American defense components toxic to potential international customers…

• The Proposed Reforms
• The January 2008 Presidential Directives
• Recent Updates and Additional Developments (2009-) [NEW]
• Additional Readings
  
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BAE’s Hawk:
over the top
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The UK’s Serious Fraud Office (SFO) has spent the last 6 years chasing BAE systems over allegations that bribes were paid to secure foreign deals in a number of countries. Bribes are the least of the allegations involved in some international defense deals, and contract wins without inducements would be far more surprising in countries like Saudi Arabia, Tanzania, and South Africa. Nevertheless, the UK does have laws to prevent British firms from paying them.

An SFO investigation into the giant Saudi Al-Yamamah aircraft deal was killed in December 2006 on national security grounds, after the Saudis threatened to cut off anti-terrorism cooperation and intelligence sharing. The government’s decision was upheld by the British House of Lords, but the SFO continued to pursue other reports concerning Chile, the Czech Republic, Romania, South Africa, Tanzania, and Qatar.

BAE systems was reportedly been given about a month to plead guilty concerning its activities in 3 countries, or face formal charges. It declined, and now the British SFO seems determined to press a formal case…

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Austrian Typhoons
w. IRIS-T missiles
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In 2003, Austria signed a EUR 2 billion contract to receive 18 EADS Eurofighters plus required support (just over $2.5 billion, or about $140 million per plane), and the aircraft were already under construction in Germany. The situation changed when the leftist SPO party, whose campaign promises included canceling the deal, had to be part of the next government in the wake of the 2006 election results.

Grandiose statements from the SPO immediately after the election were followed by a quick crash back to reality, as the mathematics of the electoral results asserted themselves. Eventually, a grand coalition government was formed that pledged to resume negotiations with EADS, after a response from Eurofighter GmbH set Austria’s cost of cancellation at EUR 1.2 billion in return for zero aircraft. While those negotiations continued, the first Austrian Eurofighter flew, #2 was rolled out, #3-6 were in final assembly, and the rest kept advancing into partial assembly. Eventually, a EUR 1.63 billion compromise was set for 15 Tranche 1, Block 5 aircraft and support services.

The Eurofighter’s rough ride in Austria has now come to an end, with delivery of the 15th and final aircraft. The details and history follow below.

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Papanikolis at HDW
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On Monday Sept 21/09, ThyssenKrupp Marine informed the Greek Minister of Defence that it was canceling “The Archimedes Project” contract for 4 U-214 diesel-electric submarines with Air-Independent Propulsion technology, because the government’s payments had remained underwater for too long. Accumulated payment arrears are over EUR 520 million ($767 million). ThyssenKrupp and its subsidiary Hellenic Shipyards will now seek international arbitration, in order to recover some of the payments due under its contract.

This development is the just the latest chapter in a long saga. If the issue remains unresolved, or arbitration results in termination payments but no delivery, Greece could find itself without a submarine force…

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FMTV Family
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The 14 variants in the Family of Medium Tactical Vehicles (FMTV) form the core of the USA’s new state-of-the-art medium military transport truck fleet. Which in turn forms the core of the “mature logistics capability” seen in the Iraqi theater and elsewhere. FMTV trucks are all automatic transmission, and range from 2.5-ton cargo and van models to 5-ton cargo, tractor, van, wrecker, tanker, specialty, and dump-truck models in various 4×4 and 6×6 configurations. Some models also have attached trailers that increase their carrying capacity. Even so, the use of common engines, transmissions, drivelines, power trains, tires, cabs, etc. create over 80% parts commonality between FMTV models. Where possible, commercial components are used for added savings.

In addition to their role as the backbone of the US Army’s truck fleet, FMTV trucks serve as the base for key weapons systems like the future MEADS air-defense system and the new HIMARS air-portable multiple rocket launchers. They also serve as the base for some blast-resistant vehicles like BAE’s Caimin.

There have been 3 main phases of the FMTV program, including the last “SO23” open competition in 2003. All told, more than 50,000 FMTV trucks in various models have been delivered to the US Army. A bridging order to BAE will continue production in Sealy, TX from 2008 through 2010, but unless something changes, the 4th phase re-compete will see a new firm begin FMTV production – alongside heavy truck production for the Army (FHTV) and Marines (LVSR), and medium trucks for the US Marine Corps (MTVR)... unless the GAO protests now underway short-circuit that award.

• FMTV Program & Production
• Contracts and Key Events [updated]
  
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F/A-18Es over Afghanistan
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It’s a seemingly small change. Allow US Navy F/A-18 E/F Super Hornets to cruise between 29,000 and 41,000 feet, where the thinner air would save the US Navy several million dollars per year in fuel costs – $250,000 for each of their qualifying Super Hornet squadrons. Unfortunately, that’s where passenger airliners fly, an altitude band called “Reduced Vertical Separation Minimum” (RVSM) airspace. Even worse, in 2005, the US Federal Aviation Administration (FAA) reacted to congestion by reducing RVSM separation, but compensated by requiring dual-altimetry systems to minimize the odds of catastrophic error. That rule neatly eliminated almost all military fighter jets.

A US NAVAIR release describes the 3-year process that led to RVSM airspace certification for the 340 Super Hornets produced in Production Lot 22 and beyond. Certification efforts for other Hornet family aircraft are also proceeding, including the F/A-18F-derived EA-18G Growler electronic warfare aircraft, and smaller Navy/USMC F/A-18 A+, C, and D Hornets.

Iraqi Mi-17, armed
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In December 2006, “Up to $750M in Weapons & Support for Iraq” covered the official Iraqi request for 20 Mi-17s. Iraq already operates Mi-17 medium transport and multi-role helicopters, which currently form the high end of the IqAF’s rotary-wing fleet and flew their first night mission [PDF] in December 2008. On the flip side, the country has also had poor experiences trying to source these helicopters abroad, including a contract with Poland that was eventually canceled due to quality problems.

In July 2008, WIRED Danger Room reported a $325 million contract to the Carlyle Group’s ARINC for 22 Mi-17s. That WIRED report raised a number of questions about the deal, which remain outstanding. Meanwhile, ARINC is also receiving related maintenance and training contracts…

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Last week, Alaska Native Claims Settlement Act Corporation Chugach World Services Inc in Anchorage, Alaska received a $55 million Indefinite Quantity firm-fixed-price contract to revitalize Buildings 2266 and 2264 at Fort Sam Houston, TX. Work is to be performed in San Antonio, TX with an estimated completion date of July 30/11. One bid solicited with one bid received by the U.S. Army Engineer District in Fort Worth, TX (W9126G-09-C-0055).

If an Alaska corporation seems like an odd single-solicitation choice for work in Texas, you’re not alone. Chugach has a long history of federal contracts for similar work all over the USA, however, which makes them an experienced partner. They’re not alone, either. ANCs’ share of federal contracting has grown from $1.1 billion in FY 2004 to $3.9 billion in 2008, including some key front-line contracts. That’s 26% of 8(a) dollars, going to 2% of registered 8(a) firms. Meanwhile, the US Small Business Administration’s Inspector General has released a pair of reports in the past 2 years, documenting issues with ANCs…

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