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.
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.
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 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).