Saudis Sign Multi-Billion Trainer Aircraft Deal With BAE

Pilatus PC-21

In May 2012, Saudi Arabia signed a long-rumored agreement with BAE for training aircraft that can take RSAF pilots all the way from basic training to lead-in fighter training, along with their accompanying classroom training and simulators. The Saudi purchase takes place within the existing Saudi-British Al-Yamamah/ Project Salam Defence Co-operation Programme, which also provided the RSAF with its high-end fleet of Eurofighter fleet, and its Tornado strike aircraft.

This GBP 1.6 billion/ $2.5 billion contract will provide familiar plane types, that continue previous RSAF relationships.

New-Old Hercules Planes for Bangladesh

BAF C-130B

The Bangladesh Air Force currently flies 4 ancient C-130B Hercules medium transports, bought second-hand from the USAF. A May 2012 DSCA request [PDF] would replace them with 4 merely old C-130E Hercules medium transports, bought second-hand from the USAF. The 4 Lockheed Martin C-130Es would be provided for free as Excess Defense Articles (EDA), along with 20 T56AA Rolls-Royce engines. If a contract is signed, Bangladesh gets these items, but would pay up to $180 million for an overhaul to full flight condition and many safe airframe hours, plus modifications and in-service support. it would also include delivery to Bangladesh, repair and return, spare and repair parts, support equipment, tools and test equipment, technical data and publications, training, and other forms of US government and contractor support. That contractor will be determined by competitive bids, since there are a number of companies offering “like-new” C-130 refurbishment services.

Rapid Fire May 24, 2012: US DoD Foreign Transactions

The US DoD published two FY11 reports on purchases from foreign entities and to foreign countries [PDFs]. DoD procurement actions from foreign entities amounted to $24B or 6.4% of the total. 67% of that comes from fuel, services, construction, or food. 18% or about $4.3B were spent on imported equipment.

Meanwhile US Foreign Military Sales (FMS) of $2M+ amounted to a total of $14.2B: $10.5B through the Army, $2.6B via the Air Force, $1B handled by the Navy and $102M via the Defense Logistics Agency (DLA). One may conclude that the US exported $10B more in military equipment than it imported, but that would be a hasty conclusion. Substantial FMS transactions to countries like Afghanistan, Egypt or Israel are subsidized with American military aid funds.

Government Contract Costs, Pricing & Accounting Report has a scathing article [PDF] on the Defense Contract Audit Agency (DCAA)…