Canada Unveils National Aerospace Industry Strategy

The Canadian government has released the National Aerospace and Defence Strategic Framework, a 20-year vision aimed at helping Canada’s leaders in the aerospace, defence and space sectors identify where and how they can be globally competitive. The document is the result of the Canadian Aerospace Partnership (CAP) process that began in April 2005 among industry, regional & national government, academia, and labour.

The report addresses both global aerospace industry trends, and matters specific to Canada’s situation. Some quick findings, key thrusts, and defense contracts on the way include:

USA Passes Revised Aerospace R&D Incentives

The US Senate recently passed bill S. 2020, which included provisions to encourage innovation in the US aerospace industry. The vote in favour was 64-33, approving a comprehensive tax bill that included an extension of a basic R&D tax credit in Section 214. It also included an AIA-advocated Alternative Simplified Credit (ASC) designed to increase incentives for high-risk defense and aerospace research, by permitting aerospace companies to claim a potential 12% benefit on Qualified Research Expenditures. The full House may act on the legislation before the end of the year.

Aerospace companies employ nearly 5% of the American manufacturing workforce, just as they do in Canada. The AIA claims that the maximum claim for ASC-related R&D under current law could be less than 4%, and that approximately 75% of all benefits claimed under the R & D credit go directly to wages and salaries. AIA and its member companies worked closely with Senate Finance Committee Chairman Charles Grassley [R-IA] and ranking Democrat Max Baucus [D-MT] on the issue.

Aerojet Extends ICBM Rocket Propulsion Research

Among the contracts awarded to GenCorp subsidiary Aerojet and aimed at improving existing rocket systems and/or developing new Intercontinental Ballistic Missile System (ICBM) technologies, you will find:

• A $48 million contract aimed at using SR19 motors as Stage 1 motors; they are currently used as Stage 2 motors in the Minuteman ICBMs, and also used as boosters for ABM defensive missiles like the THAAD, whose Aerojet-designed boost motor was recently tested.

• A $5 million modification aimed to develop turbopumps under the USET program. Success would allow 100% of that stage’s fuel to be used for thrust (FA9300-04-C-0008, P00012).

• A contract with no published amount aimed at developing new solid rocket motor technologies. Solid rocket motors are difficult to produce and have other disadvantages as well, but they are much more stable (i.e. much less dangerous) than liquid motor technologies.

This kind on ongoing expertise development may prove useful for this latest contract:

OC-12 to Alaska

TKC Technology Solutions, LLC received a contract for an Indefeasible Right of Use (IRU) OC-12 telecom bandwidth service between Fort Lewis, WA and Fort Richardson, AK. Fort Richardson is the headquarters for United States Army, Alaska (USARAK). It is also home to the 172nd “Arctic Wolves” Stryker Brigade Combat Team, currently deployed in Mosul, Iraq.

This award has a 120-month life cycle with a firm fixed price of $10.3 million. The requirement was solicited on a full and open competition basis, and four offers were received. The Defense Information Technology Contracting Organization at Scott Air Force Base, IL issued the contract (HC1047-05-D-4005).

$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).