• Russia’s state-run Rosoboronexport reveals that it has lost $4 billion-worth of defense export contracts with Libya.

• Defense Secretary Leon Panetta tells the National Defense University that the United States can enact budget cuts without compromising national security.

• Protests across Israel have prompted a rethink of defense expenditure plans. The Government is considering starting its five-year spending plan in 2013. Investment in training, missile and rocket interception systems are expected to compensate for troop reductions.

• The Technical Director of the Marine Corps Warfighting Laboratory says at AUVSI North America 2011 that the US Marines see the AeroVironment Switchblade unmanned aerial vehicle (UAV) as a suitable armed platform for top-down attack capability.

• The Commander-in-Chief of the Russian Air Force claims its re-equipment program is steadily progressing despite problems with delivery and funding.  Col General Alexander Zelin added that Russia’s T-50 stealth fighter will be delivered by 2014-15.

• Russia’s Aviastar reveals at the MAKS 2011 air show that it plans to test fly its first production Il-76MD transport aircraft by 2012. Meanwhile, the state-owned aircraft and air defense manufacturer United Industrial Corporation (Oboronprom) announced plans to boost its contract portfolio to $21 billion by the end of 2011.

• China labels rumors that Pakistan’s Inter-Services Intelligence (ISI) agency provided access to the US Black Hawk stealth helicopter destroyed in the raid on Osama bin Laden’s compound as ‘groundless and ridiculous’.

• A senior Russian defense official claims that the Sukhoi T-50/PAK-FA stealth fighter will be the ‘principal plane’ of the Russian and Indian Air Forces.

• A new Pike Research report predicts that the military fuel cell market will reach $1.2 billion by 2017, an increase from $9 million in 2011.

• Moscow’s MAKS 2011 air show has prompted a number of developments concerning Russia’s military and defense industry. Russia’s Air Force is expected to receive 450 helicopters this year, including the Kamov Ka-52 Alligator. The state-run United Aircraft Corporation (UAC) plans to provide the Air Force with 20 new aircraft a year. UAC is also keen on securing a contract to supply the military with 10 Antonov AN-124 freighters.

• Western aerospace contractors keep at low profile at Taiwan Aerospace and Defense Technology Exhibition (TADTE) 2011. Boeing and General Electric miss the show altogether.

• Elbit Systems’ Second Quarter 2011 Results show revenues at $691.6 million, as compared with $603.3 million for last year’s corresponding quarter. C4I and airborne systems were leading contributors to the increase.

• Israel Aerospace Industries (IAI) is considering aerial refueling options for the upgraded version of its Heron unmanned aerial vehicle (UAV).

• The US Army awards an Omnibus III $497 million indefinite-delivery-indefinite-quantity (IDIQ) contract for the provision of support to the US Navy Medicine Research and Development (R&D) programs.

• Meanwhile, the General Services Administration (GSA) awards N~Ask Inc., BIT Systems and CACI Technologies an IDIQ contract worth up to $40 million for Signals Intelligence (SIGINT) Engineering Support Services (SESS II).

• Ukraine’s Arsenal Design Bureau claims to have developed a ‘world class’ infrared seeker for use on anti-ship missiles.

• The DoD Inspector General’s internal audit of DARPA contract awards will likely pay close attention to business conducted with RedXDefense, a bomb detection company co-founded by the current director of DARPA.

C295, delivered

In September 2009, a US DSCA request for 4 C-27J aircraft plus ancillaries and support, at a price of up to $680 million, sparked considerable controversy in Ghana. As we noted at the time, a DSCA request is not a contract. It’s a legal notice under American export laws, and if Congress does not block the sale within 30 days, negotiations may begin.

Ghana is a West African country located on the Gulf of Guinea. Its parliament was chosen to host President Obama’s 2009 Africa speech, and the DSCA describes the country and the sale as ”...a U.S. Government partner which has been, and continues to be, an important force for political stability and democracy in Africa.” As of 2011, however, Ghana is not listed or cited among the C-27J’s buyers or operators. On the other hand, it has become a confirmed buyer of Airbus Military’s rival C-295…

• US Secretary of Defense Leon Panetta responds to the debt ceiling agreement by declaring that the Department of Defense’s spending choices must be based on sound strategy and policy and not result in the weakening of national security.

• The deputy chief of Russia’s Federal Service for Military-Technical Cooperation says the country is preparing to sign more military cooperation deals with the United States. Cooperation is anticipated to extend beyond helicopter purchases like the recent contract for 21 Mi-17V5s.

• The commander of the UK’s Falklands War Task Groups declares that the House of Commons Defence Select Committee’s findings on the Strategic Defence and Security Review (SDSR) provides a framework for sensible reform in straitened financial circumstances. Admiral Sir John Woodward also criticizes Government rebuttals of the Committee’s report.

• The US Army awards Safariland a contract with a potential maximum value of almost $32 million to provide ammunition, over 30mm up to 75mm.

• Israel’s evaluation of the MV-22B Osprey is reportedly positive. The question is whether they’ll find the funding to order a handful.

• GKN’s Results Announcement for the first six months ended 30 June 2011 [PDF] reports an 11% increase in sales and a good showing in the aerospace sector. Meanwhile Cobham announces [PDF] a 7% decline in revenue from 2010, a statistic it attributes to ‘challenging conditions in the US defence and security market’.

• ThyssenKrupp releases a statement indicating that there are no plans to form a joint venture or merger between its Marine Systems division and the French shipbuilder DCNS.

• EADS’ Airbus Military subsidiary signs a contract to supply Ghana with two C-295 turboprop transport aircraft.

• Azerbaijan is reportedly seeking to change Washington’s established policy by asking the United States to supply the country with ‘defense weapons’, including air defense and anti-tank systems.

• USAF officials believe that they can save $15 million in energy costs by making some changes to the Kaiserslautern Military Community Center at Ramstein AB, Germany. The steps were actually pretty simple. Next step? Maybe solar on the KMCC’s 10 acres of roof.

• 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.

• EADS follows up its bid to purchase Satair by announcing that its Astrium subsidiary has entered into an agreement to acquire satellite communications provider Vizada for $960 million.

• Boeing delivers the UAE’s 3rd C-17 heavy airlifter.

• Sikorsky intends to begin manufacturing its S-97 Raider X2 compound helicopter design before the summer’s end. That has some implications for the USA’s Armed Aerial Scout program, but their military ambitions for X2 technology extend beyond that.

• South African police are re-opening an arms deal investigation after Saab’s recent admission that its former partner, BAE Systems, offered bribes to secure a contract for 26 JAS Gripen fighters.

• India makes 3 major appointments to oversee their submarine fleet, which will include their Project 75 Scorpene program, the follow on Project 75i, and even their ATV nuclear submarine program.

• In a speech on the eve of China’s Army Day, Defense Minister Liang Guanglie called for the accelerated development of modern logistics and reforms for the Peoples’ Liberation Army (PLA). Liang’s comments came after a senior researcher at the Academy of Military Sciences was quoted as saying that China needs three aircraft carriers.

• Israel’s Defense Forces’ (IDF) Chief of Staff tells the Knesset’s Foreign Affairs and Defense Committee that cutting defense expenditure in favor of social activists’ demands will compromise the IDF’s ability to meet potential threats.

• Russian Navy Commander Admiral Vladimir Vysotsky says that the Black Sea Fleet will receive six Project 636 Kilo class diesel-electric submarines over ‘the next few years’.

• Despite plans to reduce expenditure - and a tight set of bureaucratic regulations - US defense market opportunities are still proving attractive for European contractors.

USAF C-37A
(click to view larger)

On July 27/11, the Pentagon announced a $26.8 million contract to Gulfstream Aerospace Corp. in Savannah, GA to buy 1 leased aircraft, in accordance with option terms of the contract. Research reveals that the plane is a C-37A Gulfstream V long-range business jet, flown under a 10-year, $477.3 million lease of 5 planes, signed in October 2000. The USAF currently flies 9 C-37s: 4 at Andrews Air Force Base, MD; 3 at MacDill AFB, FL; and 1 each at Hickam AFB, Hawaii, and Chievres Air Base, Belgium. They are used as longer-range counterparts to its C-20 Gulfstream III/IV VIP jets, and include secure military communication equipment on board.

The OC-ALC/GKSKB at Tinker Air Force Base, OK manages this contract (F33657-00-C-0038, PO 0183).

• Airborne Mobility Command point to the increase in airdrops over Afghanistan over the past five years as evidence of the growing importance of  Joint Precision Aerial Delivery Systems (JPADS) to operations.

• The French Government’s agreement with Israel Aerospace Industries (IAI) and Dassault for the production and purchase of Heron TP long range UAVs is expected to cost $500 million.

• Elbit announces that the Israeli Ministry of Defence has awarded the company with a $40 million follow-on order for the Digital Army Program (DAP) [PDF].  The announcement comes as the Israeli Defense Forces (IDF) announces that it has embarked upon the follow-up phase of the DAP.

• A leaked memo written by the UK’s Chief of the General Staff appears to contradict assurances made by the Government that no more troops will be made redundant before the end of the Afghan campaign in 2015. The news comes after the United Kingdom National Defence Association (UKNDA) branded recent memo leaks as examples of deliberate disinformation from within the Ministry of Defence (MoD).

• Ahead of next month’s Operation Nanook 2011, Canada’s annual arctic military exercises, Defence Minister Peter MacKay reveals that the number of Canadian Rangers has increased since 2007.

• The US Navy deployment to Libya, counter-piracy operations off the coast of Somalia and budget issues make a similar response to the growing problem of West African piracy problematic.

• Taiwan reveals that a People’s Liberation Army Air Force (PLAAF) Su-27 fighter crossed the median line of the Taiwan Strait in late June. The Su-27 was in pursuit of a US U-2 reconnaissance plane. Taiwan responded by scrambling two F-16s to the area.

• Meanwhile China and South Korea will hold an inaugural defense dialogue in Seoul this week. News that Pyongyang tested its intercontinental ballistic missile prior to the attack on Yongpyeong Island may force North Korea onto the agenda.

• Reportlinker adds iCD Research’s Global Aerospace Industry Outlook Survey 2011-2012: Industry Dynamics, Market Trends and Opportunities, Buyer Spend and Procurement Strategies to its list of publications.

Strong’s JPADS,
Afghanistan

The dilemma for airdropping supplies has always been a stark one. High-altitude airdrops often go badly astray and become useless or even counter-productive. Low-level paradrops face significant dangers from enemy fire, and reduce delivery range. Can this dilemma be broken?

A new advanced concept technology demonstration shows promise, and is being pursued by U.S. Joint Forces Command (USJFCOM), the U.S. Army Soldier Systems Center at Natick, the U.S. Air Force Air Mobility Command (USAF AMC), the U.S. Army Project Manager Force Sustainment and Support, and industry. The idea? Use the same GPS-guidance that enables precision strikes from JDAM bombs, coupled with software that acts as a flight control system for parachutes. JPADS (the Joint Precision Air-Drop System) has been combat-tested successfully in Iraq and Afghanistan, after moving beyond the test stage in the USA… and elsewhere.

• JPADS Systems
• The JPADS Program & History
• JPADS: Contracts & Key Events [updated]
• Additional Readings & Sources
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• NATO Secretary General Anders Fogh Rasmussen thanks General David Petraeus for his command of coalition troops, and hails the handing over of Bamiyan province to Afghan security forces as the beginning of full transition.

• UK Defence Secretary Dr Liam Fox is set to unveil a radical overhaul of the British Army. It is expected that regular troop levels will fall from 101,000 to 82,000 by 2020. Dr Fox is also expected to endorse a review of the UK’s use of its reserve forces for frontline activities.

• L-3 uses the UK’s Royal International Air Tattoo (RIAT) to unveil its Spydr intelligence, surveillance and reconnaissance (ISR) aircraft. The Spydr is based upon Hawker Beechcraft’s King Air 350-ER with the potential to be equipped with L-3’s processing, exploitation and dissemination systems.
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