$33.8M for Fort Huachuca, AZ Operations

All Star Services Corp. in San Diego, CA received a $33.8 million firm-fixed-price contract for base operations and maintenance at Fort Huachuca, AZ. Its motto is “from sabers to satellites,” and this location has a heavy electronics and intelligence weighting to its tenant units.

Work is expected to be complete by Nov. 21, 2010. There were nine bids solicited on June 7, 2005, and nine bids were received. The Information Technology E-Commerce and Commercial Contract Center at Fort Huachuca, AZ issued the contract (W9124A-06-C-0004).

DD (X) Gets Go-Ahead Through Milestone B Review

DD (X) Destroyer

On Veteran’s Day, DID covered the DD (X) destroyer program‘s upcoming Defense Acquisition board review, and noted the fact that DD (X) disputes were one of the main obstacles holding up the FY 2006 defense appropriations bill. We’ve noted past articles covering GAO reports and the DD (X)’s likely cost of over $3 billion per ship, the July 2005 Critical Design Review, threatened cost caps from the House and examination of alternatives, to the concept behind its AGS long range naval gun.

The program that once hoped to produce 32 ships will now spend a significant percentage of the Navy’s shipbuilding budget on a class that is slated to include only 8 ships according to the new Destroyer Acquisition Decision Memorandum, and may well go as low as 5 ships if further cost slippages occur. Based on the memo and the amount left for system development & design, the DD (X) program can be expected to spend about $30 billion more if it remains within budget. This figure would not include operations and maintenance costs.

India & Aerospace Outsourcing: Rolls Sets Up a Subsidiary

The USA is paying attention to its aerospace sector, and asking how to keep the field well stocked with quality talent and maintain its trade surplus in that field. Meanwhile, DID ran a quick article in February 2005 that covered India as a potential outsourcing hub for global aerospace and missile companies. Bangalore is becoming an aerospace hub as well as a computing hub, and Rolls Royce was one of the specific examples used.

Now Rolls Royce has formally established Rolls-Royce Operations India Pvt Ltd. in Bangalore.

Saab Sells Nammo Ammo Share, Finland’s Patria Oyj Buys

DID has covered the Finnish defense firm Patria Oyj, most recently in the context of the Czech government’s $1 billion wheeled APC acquisition. They’re an innovative firm to watch in the European market. We’ve also covered a Nordic Ammunition Co. (“Nammo”) subsidiary who sells specialized small caliber ammunition to US forces. Now Patria has signed a Letter of Intent with Swedish firm SAAB AB to acquire their 27.5% of shares in Nammo AS. The purchase sum is SEK 400 million (about USD $49.5 million)

Nammo’s Shareholders’ Agreement now gives the Government of Norway until December 18, 2005 to exercise its right to acquire an additional 5% of Nammo’s shares, which would lead to a 50/50 ownership split with Patria. The acquisition of the shares is subject to necessary regulatory approvals and customary approvals of the parties, and Patria expects to finalize its transaction before the end of 2005.

FLIR Systems Wins $50M Order for Shipboard Infrared

FLIR Systems Inc. in North Billerica, MA received a $50 million firm-fixed-price contract for shipboard infrared visual sensor systems. Work will be performed in North Billerica, MA and is expected to be complete by November 2010. The solicitation was advertised on the Federal Business Opportunities website and the Crane Division Acquisition websites, with two offers received. The Naval Surface Warfare Center, Crane Division in Crane, IN issued the contract (N00164-06-D-8543).

Lockheed Opens Wing Production Line to Keep P-3 Orions Flying

CP-140 Aurora

There are over 500 maritime patrol and reconnaissance aircraft around the world, some 85% of which are P-3 Orions. In service with 15 countries (including India’s recent adoption), they have accumulated over 14 million flying hours performing a wide variety of missions. Including a surprising overland role in locations like Kosovo and Afghanistan. As DID has noted in its ongoing coverage of the P-3 platform and its upgrades, however, the Orions are near the end of their service life and require extensive efforts to keep them in the air. Some are over twice as old as the pilots flying them. Worse, P-3 Structural Life Assessment Program (SLAP) tests showed that their inherently punishing mission profiles were accumulating fatigue damage faster than previously believed.

In order to keep the P-3s flying safely until replacement aircraft like the 737-based P-8 MMA become available, customers are making unusual efforts. Fortunately, Lockheed Martin is also taking steps.

Jordan Purchases $230M C4I Upgrade, 3 F-16B Trainers

Dutch F-16B

The Jordanian armed forces have been busy of late, snapping up Russian strategic transport aircraft, discussing other Russian deals, and now upgrading their air defense systems. Northrop Grumman Corporation has been selected for a multi-phase, five-year contract valued at more than $230 million to update Jordan’s national command, control, communications, computer and intelligence (C4I) networks with systems based in part on the U.S. military’s Global Command and Control System, and designed from the outset to be interoperable with allied forces. See full release.

In a separate deal, the Jordanians also picked up 3 used Dutch F-16B aircraft. The two-seat fighters will be used as trainers.

State Dept. Issues Waiver, Resumes US Military Sales to Indonesia

Grounded.

The recent tsunami also triggered a wave of military contacts and cooperation between the USA and Indonesia, with American naval forces serving as the backbone of on-the-ground relief efforts. Overall relations and public sentiment on both sides improved considerably. Nevertheless, the US House and Senate recently decided to include the Senate’s prohibitions on lethal military equipment sales to Indonesia in the 2006 Foreign Operations Act until key conditions regarding accountability, human rights, and civilian control of the military were met. Now, the US State Department has exercised its authority under that law to waive those restrictions “in the interests of US national security.”

There’s a lot going on here.

Boeing Wins $24M for P-8A & BAMS-Related Software Development

Mariner UAV

The Boeing Co. in Seattle, WA received a $24 million modification to a previously awarded cost-plus-award-fee contract (N00019-04-C-3146) for development of unmanned aerial vehicle control software, classification aids software, and CAD models for the P-8A multi-mission maritime aircraft. Note that the P-8A is expected to operate in conjunction with a long-range, long endurance Broad Area Maritime Surveillance (BAMS) UAV – possibly a derivative of the RQ-4 Global Hawk, or the enlarged Mariner UAV derivative of the MQ-9 Predator B.

Work will be performed in Seattle, WA and is expected to be complete in September 2011. The Naval Air Systems Command in Patuxent River, MD issued the contract.

L-3 Titan Upgrading LCACs

LCAC into LPD-9
(click to enlarge)

L-3 Communications Titan Unidyne in Norfolk, VA won an $8.8 million firm-fixed-price contract to upgrade landing craft air cushion (LCAC) hovercraft 62, 64, 65, and 76. The US Marines’ LCACs can carry as many as 11 Humvee jeeps or a 60-ton M-1 Abrams tank directly from the well deck of an at-sea vessel like an LHD or LPD, and continue right up onto land before disembarking its cargo. Or, it can embark troops and vehicles on land and deliver them directly to an at-sea ship. A total of 91 LCACs were built between 1984-2001, and depending on their in-service dates they will require regular refurbishment, upgrades, and even life extension programs to keep them operational into the future.

Work will be performed in Camp Pendleton, CA and is expected to be complete by October 2006. This contract was competitively procured and advertised via the Internet, with two offers received. The Southwest Regional Maintenance Center in San Diego, CA issued the contract (N55236-06-C-0002).