Slovenian Army’s New APCs: Patria’s AMVs

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.

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

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.

US Will Sell Global Hawks – Will South Korea Buy?

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.

Iraq: Weapons – and Challenges – In the Pipeline

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:

Brazil Buying & Building BAE’s 90m Patrol Vessels

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?

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

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.

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.

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

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.

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

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.

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

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.

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

• 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.”