$2.35B to Raytheon for SM-3s | Australia Gets FMS Approval for $180M in Chinooks | Saab Sweetens the Deal to Sell Gripens to India

Americas

• Raytheon has been awarded a $2.35 billion contract to deliver 52 SM-3 Block IB missiles. The contract finalizes a preliminary one for 44 missiles valued at $541 million. The addition of 8 further missiles comes as the US military is increasing its stocks of SM-3s in the wake of increased missile threats, and orders by foreign allies of its weapons systems.

• General Atomics will conduct logistical support for Predator (MQ1) and Reaper (MQ9) unmanned aerial systems for the US Air Force. The one year contract is worth $338.2 million. Work to be carried out includes program management, logistics support, configuration management, technical manual and software maintenance, contractor field service representative support, inventory control point management, flight operations support, depot repair, and depot field maintenance. The MQ1s and MQ9s will also see sensors contractor logistics support provided by Raytheon for the year in a contract worth $49.4 million.

Middle East North Africa

• Raytheon Corp. has been awarded a $74.5 million foreign military sales contract to provide English language training and a series of Pre-PATRIOT military occupational specialty training classes to the government of Kuwait. Training is to be completed by December 17, 2018. The contract coincides with the expected June 2016 delivery from Lockheed Martin of fourteen four pack Patriot missiles and seven launcher modification kits to Kuwait. The training will increase the Gulf nation’s military integration and interoperability as it conducts military intervention as part of the Saudi Arabian led coalition in Yemen.

Europe

• Germany is looking to develop the replacement of the Tornado jet, with planning discussion set to begin in 2016. Like the Tornado, the replacement may be manufactured by a consortium of European manufacturers. The announcement was made as part of a government draft document on “military aviation strategy” although a decision on whether the fighter would be manned or unmanned was not noted. It is possible that a version of both will be designed. The document also mentions the idea of extending the life of the German Tornado fleet until the mid-2030s, a decade longer than their planned retirement.

• The purchase of Javelin missiles and command launch units by Lithuania has been cleared by the US State Department in a deal worth $55 million. The acquisition includes 220 anti-tank missiles, 74 launch command units, 10 fly-to-buy missiles, and aims to help modernize the capabilities of the Lithuanian Army to participate in future NATO operations. Recent Russian military action in Ukraine and the annexation of the Crimea in 2014 has resulted in neighboring countries increasing their defensive capabilities against any future Russian aggression.

Asia Pacific

• The US State Department has approved the sale of three CH-47F Chinook helicopters to Australia. The $180 million foreign military sale includes six Aircraft Turbine Engines and three Common Missile Warning Systems, as well as three Infrared Signature Suppression Systems and logistical support. Australia has ordered seven of the latest CH47F model to replace the existing CH-47Ds currently in service with the Royal Australian Air Force. Delivery is expected to be completed by 2017.

• Malaysia may consider purchasing Pakistan’s JF-17 aircraft as part of its current fighter replacement program. Malaysian High Commissioner to Pakistan, Dr. Hasrul Sani made the announcement citing the excellent relations both nations currently have in terms of defense cooperation. The sale would also see further increase in the bilateral trade between the two, which currently stands at over $2 billion per annum. Other options currently being considered are the Dassault Rafale, Boeing’s F/A-18 and Lockheed Martin’s F-16V. The interest in the JF-17 comes alongside the China-Pakistan Economic Corridor (CPEC) project which will see over $40 billion invested in Pakistan’s infrastructure and economic development. Dr. Sani stated that the whole region would stand to benefit from the CPEC project.

• Saab has made another bid to sell its Gripen fighters to India, after it lost out a tender to Dassault’s Rafale in 2011. With a deal to buy 36 Rafale fighters just signed last month, Saab has claimed that India will require more fighters to maintain an at capacity fleet. The offer comes sweetened with a technology transfer, giving full system and software control and an offer to help develop India’s aerospace industry for the next 100 years. This deal would see Saab help in the development of India’s own indigenous Light Combat Aircraft Tejas and the Advanced Medium Combat Aircraft (AMCA). The promise of a Saab base in India and full technology transfer is a tempting one as it would mark a big success for President Modi’s “Make in India” program after tough negotiations with France and Dassault over the Rafale purchase.

Today’s Video

• NATO has conducted the maiden flight of NATO’s RQ-4 Block 40 Global Hawk as part of the Alliance Ground Surveillance program, marking an important milestone for them and Northrop Grumman.

Australia Ordered CH-47F Chinooks Contract Fulfilled; Housing Under Construction

Australian CH-47D:
Afghanistan, 2006

In December 2005, Australia decided to upgrade its CH-47D Chinook fleet, in preparation for use on the front lines. Afghanistan’s high altitudes and sometimes-scorching temperatures reduce rotor lift. That made the Chinooks a far better choice than upgrading the ADF’s S-70 Black Hawk helicopters, whose reduced carrying capacity would limit their tactical uses. Those CH-47D Chinooks have gone on to play an important role in Afghanistan, amidst a general shortage of useful helicopters. Now, Australia seems determined to supplement its older CH-47D fleet with new and improved CH-47F models, which feature more modern electronics, uprated engines, and numerous other improvements.

The question was when the DSCA request would become an actual contract. That question has just been answered.