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Archives by category > Legal (RSS)

Slovenian Army’s New APCs: Patria’s AMVs

Feb 09, 2014 17:45 UTC

Latest updates[?]: Finnish court proceedings end in dismissal, and could affect appeals in other countries.
Svarun Presentation

Slovenian “Svarun”

In June 2006, the Slovenian Ministry of Defence picked Patria’s 8×8 wheeled Armored Modular Vehicle (AMV) as the preferred choice for its 135 vehicle armored personnel carrier program. The APCs would come in 4 different versions, including a variant with Patria’s new unmanned NEMO 120mm mortar turret. The deal was worth over EUR 275 million, with deliveries to take place from 2007-2013.

An ongoing bribery investigation led to the resignation of Patria’s President and CEO, and eventually to his arrest. A long-running controversy became a continuous distraction, and there were issues with sub-contractor performance along the way. In 2011, a new government cabinet unanimously voted to try and cancel the deal. In 2012, they succeeded.

Continue Reading… »

US Department of Defense FY 2014 Budget: After a Year of Drama, Budget Chairs Prescribe Sequester Painkiller

Dec 17, 2013 21:50 UTC

Latest updates[?]: A bill passed on Dec. 12 with a clear majority in the House, reflecting a bipartisan deal put together by the chairmen of the House and Senate budget committees, looks about ready to be voted by the Senate, even if by a slimmer margin. This not only takes care of the 2014 continuing resolution, but also offers slightly more comfortable numbers for DoD to work with into FY15. Since dealing with fundamental fiscal imbalances seemed impossible until at least the mid-terms, this is as good as it gets from the perspective of providing a modicum of stability and clarity to defense funding.

By releasing its budget proposal for fiscal year 2014 in mid-April, the Obama administration was two months over the legal deadline and later than at any time in the modern record. The Office of Management and Budget (OMB) reiterated the gambit that failed and arguably backfired in the previous fiscal year by ignoring the sequester. In place, President Obama put again on the table the broad terms he had offered earlier to House Republicans, with a mix of spending cuts (translation from Washington lingo: mostly a decrease in the rate of real growth) and tax increases. At the time that was received by most observers as a lack of realism, making the budget request at best relevant in terms of its hinting of relative priorities. Events throughout 2013 would then vindicate the view that the FY14 PB was a fantasy.

Continue Reading… »

US Will Sell Global Hawks – Will South Korea Buy?

Nov 03, 2013 14:06 UTC

Latest updates[?]: South Korea looks at its options - and reportedly decides to go with Global Hawk.
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RQ-4 cutaway

Global Hawk Cutaway

The RQ-4 Global Hawks isn’t a full successor to the famous U-2 spy plane just yet. It’s close, however, and some people have described the HALE (High Altitude, Long Endurance) UAV as the equivalent of having a photo satellite on station. Flying at 60,000 feet for 30-40+ hours at a time, the jet-powered UAV uses sophisticated radars and other sensors to monitor developments on land, sea, and air over an area of about 40,000 square miles/ 100,000 square km. Reported image resolution has been described as 1 foot or less. The USA has made effective use of Global Hawks since their formal unveiling in 1997, which has prompted interest from other countries. NATO’s AGS system will deploy Global Hawk UAVs as well.

Outside of NATO, however, sales have been much trickier. Four issues have worked to hold up potential sales – 2 of which are acknowledged openly, and 2 of which tend to play out very much behind the scenes. South Korea ran afoul of all 4 of those issues, when the USA rejected their application to buy 4 of the larger RQ-4B UAVs in 2006. Now, it seems, the tide has turned in the USA, but South Korea is less sure. What’s certain is that the USA will be fielding its own Global Hawks over the peninsula. What’s less certain is whether South Korea will buy some of its own.

Continue Reading… »

Iraq: Weapons – and Challenges – In the Pipeline

Jul 18, 2013 00:15 UTC

SA-22 Pantsyr

The last quarterly report [PDF] from SIGIR (the Special Inspector General for Iraq Reconstruction) included an interview with OSC-I (Office of Security Cooperation-Iraq) head Lieutenant General Robert Caslen.

Among other things, it provides an interesting breakdown of Iraq’s planned future purchases. Overall:

Continue Reading… »

Brazil Buying & Building BAE’s 90m Patrol Vessels

Jun 21, 2013 11:29 UTC

Amazonas leaves Portsmouth

Amazonas

As 2011 came to a close, Brazil’s buy of 3 in-stock Offshore Patrol Vessels from BAE, with an option to license-build 5 more, had the potential to cast wide ripples.

Brazil has very extensive coastal responsibilities, a sizable Marine Corps, and a Navy whose frigates are either British designs, or former British ships. That navy is set to expand and modernize, as Brazil moves to protect key assets like its deep-water oil production, but British shipbuilders will face stiff competition. Other key Brazilian suppliers like France’s DCNS will be bidding, alongside naval shipbuilders around the world. The Amazonas Class OPV purchase is certainly another piece of the naval puzzle for Brazil, alongside its future submarines. Is it also another piece of the puzzle for BAE?

Continue Reading… »

DoD Budget: Fiscal 2013-17 Highlights, Numbers & Unfolding Events

Mar 27, 2013 12:00 UTC DII

Latest updates[?]: In the anticlimax of the year, President Obama signs the Consolidated and Further Continuing Appropriations Act (HR 933), which finally wraps up US defense funding legislation for fiscal year 2013.
Department of Defense budget legislation

On normal years the US Department of Defense goes through a complicated-enough process to establish and finalize its budget. But whereas FY 2012 offered a welcome return to normalcy after a very long continuing resolution, the budgeting cycle for fiscal year 2013 unfolded in an unproductive, fractious political environment.

As fiscal year 2012 came to a close Congress bought time with a continuing resolution. And as the new civil year started, Congress begrudgingly applied a short-term patch to avoid the fiscal cliff, while the President eventually signed a FY13 authorization bill containing language he had threatened to veto for months. By March 2013 everyone seemed to capitulate to wrap up appropriations for the rest of the year. But FY13 appropriations ended up including sequestration, an outcome that few had predicted since the Budget Control Act was passed in 2011. The FY14 budget cycle then started late, with only dim hope of a more reasonable outcome.

Continue Reading… »

AWV 2014: Patria’s AMV is Sweden Next-Generation APC

Mar 17, 2013 13:39 UTC

Latest updates[?]: 1st delivery; Clarity on variants & future schedule; Article improvements.
AMV Pansarterrrangbil 360

Swedish AMV rollout

In June 2009, Sweden’s FMV defense procurement agency picked Finland’s Patria Oyj 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 (MEDical EVACuation) through to IFV(Infantry Fighting Vehicle) or even automated mortar carrier duties.

By October 2009, however, a Swedish court had nullified the contract. Rather than waste time on appeals, the FMV red-did the “AWV 2014” competition. In August 2010 they issued… a EUR 260 million contract for 113 Patria AMVs.

Continue Reading… »

BAE’s Bribery Battles: Weakened Post-Settlement Investigations Drag On

Jan 20, 2013 13:30 UTC

Latest updates[?]: Austrian judge says Mensdorff-Pouilly was "lucky." A member of the South African investigation commission quits two months before public hearings. Czechs belatedly seek help from Sweden but so far investigation seems stalled.
Hawk LIFT Over Top

BAE’s Hawk:
over the top

The UK’s Serious Fraud Office (SFO) spent 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. The US Department of Justice, meanwhile, never let go of the Saudi deal.

In 2010 a settlement was reached that included the SFO – and the US DoJ, which got the lion’s share. A held-up deal with Tanzania then settled in early 2012. By 2013 this left an “investigation” in South Africa, and a Czech case with little apparent progress.

Continue Reading… »

Rapid Fire Nov. 30, 2012: US Senate Gets Closer to NDAA

Nov 30, 2012 10:10 UTC

Panetta & Barak, before retirement

Desk Iron Dome. Make it happen.
Ash is going to be SO jealous!

If you throw pens at Leon Panetta’s desk, the small Iron Dome replica he received as a gift from Israeli Minister of Defense Ehud Barak won’t shoot to intercept. Panetta hid his disappointment gracefully but he would not say whether the anti-rocket system (marketed at full size by Raytheon in the US) would end up on the FY14 budget request. Joint press conference transcript.

Continue Reading… »

Rapid Fire Oct, 10, 2012: Sequestration Will Spread Malaria

Oct 10, 2012 10:55 UTC

  • Democrats from the House Appropriations Committee published their estimates of the consequences of sequestration not just on defense, but as DID recently half-jokingly predicted, with an increasingly broad scope and dire consequences. If the loss of 1 million 2 million jobs did not adequately frighten you, consider that the sequester also means “3 million fewer malaria treatments” and “more than 14,000 deaths from completely preventable illnesses.”

Continue Reading… »
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