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November 13, 2020 | International, Aerospace

Airbus hopes its $6.5 billion German Eurofighter sale will shine for Switzerland, Finland

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COLOGNE, Germany — Airbus is trying to make hay out of its $6.5 billion sale of 38 Eurofighter aircraft to Germany for other procurement competitions in Switzerland and Finland.

The European defense giant inked a deal with the German Luftwaffe, or Air Force, this week after the country's parliament, the Bundestag, approved the budget earlier this month. The Luftwaffe stands to get 30 single-seater and eight twin-seater planes, Airbus said in a statement.

Four of those aircraft will serve as test beds for future technology, as the company positions the Eurofighter as the bridge to the next-generation Future Combat Air System, a German-French-Spanish collaboration, according to the service.

“The renewed order from Germany secures production until 2030 and comes at a strategically important time for the program,” the company statement read. “In addition to an expected Eurofighter order from Spain to replace its legacy F-18s, procurement decisions in Switzerland and Finland are imminent in 2021.”

Switzerland wants to buy up to 40 aircraft for a maximum of $6.5 billion, and the Eurofighter is one of the aircraft in the running. Similarly, Finland is considering the plane as a replacement for its F-18 fleet.

“The variant offered in Switzerland corresponds to the configuration of the German Quadriga order,” Airbus officials wrote in the statement, referring to the name of a new, fourth tranche of aircraft.

The new batch, to be delivered by 2030, will replace the first tranche, bought between 2003 and 2008, which can only do air-to-air combat and boasts an obsolete radar, according to the German Defence Ministry.

Voters in Switzerland approved a new air defense package in September, including a ground-based weapon system and a fleet of combat aircraft. A second offer from the four competing companies is expected this month. Besides the Eurofighter, Dassault's Rafale, Boeing's F-18 Super Hornet and Lockheed Martin's F-35 also are under consideration.

The Finnish government over the summer upped the budget for its “HX” fighter program to $5.8 billion, eyeing a procurement decision in 2021.

“The new Tranche 4 Eurofighter is currently the most modern European-built combat aircraft with a service life well beyond 2060,” Airbus Defence and Space CEO Dirk Hoke said in a statement following the contract signature with the German government. “Its technical capabilities will allow full integration into the European Future Combat Air System, FCAS.”

https://www.defensenews.com/global/europe/2020/11/12/airbus-hopes-its-65-billion-german-eurofighter-sale-will-shine-for-switzerland-finland

On the same subject

  • Back hard-hit businesses? Experts press EU to instead boost defense spending

    April 29, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Back hard-hit businesses? Experts press EU to instead boost defense spending

    By: Tom Kington ROME — Defense experts are concerned that Europe's newfound commitment to joint defense spending may be cast aside as the European Union diverts cash into economies hammered by the coronavirus lockdown. The scenario was discussed in a webinar hosted by Italy's IAI think tank on April 8. And last week, Polish and German experts wrote of the risk that the fledgling European Defence Fund will be savagely cut. Then on April 27, eight experts issued an appeal to EU policymakers, arguing that rather than cutting defense funds to free up money to support hard-hit businesses, they should do the opposite and beef up defense spending. With so many high-tech jobs in the defense industry, “specific support for this sector will be needed to mitigate the economic crisis' effects and preserve the long-term future of Europe,” wrote the experts, who hail from Spain, Italy, the U.K., France and Lithuania. According to the letter, the EU plans to pack its 2021-2027 budget with measures to limit a recession some economists believe will follow the pandemic. Economists have also warned such a recession would dwarf the fallout from the 2008 financial crisis. “Undoubtedly it will focus on critical sectors such as health or energy. We believe that the defence sector should be included in such critical sectors and that a revised version of the [budget] should be the opportunity to reassert a truly ambitious budget for the European Defence Fund,” the experts wrote. Apart from shoring up defense jobs, feeding the European Defence Fund would help defend the EU as threats grow, they wrote. “Indeed, COVID-19 will not stop or mitigate the ongoing worsening of the international security environment threatening European security and interests. On the contrary, it is likely to make the world more unstable and more insecure,” they added. Defense spending had been slashed after 2008, the experts said, and faces a similar fate now, just as “Europe is trying to develop next-generation fighter aircraft, main battle tanks, frigates and other capabilities such as unmanned systems crucial for its military and technological edge.” Cutting budgets would not only increase Europe's dependency on “third states” but would “significantly hinder the credibility of European nations as military partners, notably within NATO,” they added. Prior to the spread of coronavirus, pressure had grown inside the EU to halve the €13 billion (U.S. $14 billion) planned for the European Defence Fund during 2021-2027. Now, the EU should halt any plans to cut the fund and instead increase it, the experts wrote. “As Europe gradually emerges from the pandemic, there [cannot be a] secure ‘new normal' without a solid European defence,” they concluded. The letter's release coincided with a report from the Stockholm International Peace Research Institute that found total global military spending rose 3.6 percent in 2019 to $1.917 trillion — marking the largest annual growth in spending since 2010. The think tank report also found that U.S. spending grew by 5.3 percent to a total of $732 billion in 2019, at 38 percent of the global total. The increase alone in U.S. spending was roughly equal to the entire budget of Germany. The European country's military spending rose by 10 percent last year to $49.3 billion, which the think tank said was the largest increase in spending among the top 15 military spenders in 2019. https://www.defensenews.com/global/europe/2020/04/27/back-hard-hit-businesses-experts-press-eu-to-instead-boost-defense-spending/

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  • Contract Awards by US Department of Defense - August 11, 2020

    August 12, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - August 11, 2020

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Functions include engineering, technical and logistics support for in-service ship systems and equipment, refurbishment and testing of electrical and electrical control equipment, program management, programmatic, engineering and implementation coordination support for equipment upgrades and ship modernization initiatives and direct fleet support for afloat units at the waterfront. Contractor support is required to provide the necessary technical expertise, technical personnel mix and support for all of these efforts. The contract awarded to Tide is not to exceed $31,764,960; the contract awarded to G&C is not to exceed $33,491,813; the contract awarded to McKean is not to exceed $31,531,799; the contract awarded to NDI is not to exceed $33,667,355; and the contract awarded to Q.E.D. is not to exceed $30,420,902. The contract awards listed above are not to exceed a program value and combined total of $34,636,452. Work will be completed at the contractors' facilities (86%); and Philadelphia, Pennsylvania (14%). Work is expected to be completed by July 2026. Fiscal 2020 other procurement (Navy) (91%); and operations and maintenance (Navy) (9%) funding in the total amount of $500,000 ($100,000 minimum guarantee per contract) will be obligated at time of award via individual task orders, of which operations and maintenance (Navy) funding in the amount of $44,800 will expire at the end of the current fiscal year. These contracts were competitively procured using full and open competition via the Federal Business Opportunities website, with 10 offers received. The Naval Surface Warfare Center Philadelphia Division, Philadelphia, Pennsylvania, is the contracting activity. Sikorsky Aircraft Corp., a Lockheed Martin Co., Stratford, Connecticut, is awarded a $25,127,577 cost-plus-fixed-fee delivery order (N00019-20-F-0863) against basic ordering agreement N00019-19-G-0029. This order provides non-recurring engineering for the development of logistics support products for the Maintenance Task Analysis Phase II, a provisioning database of technical information to include 2D drawings that supports all operational, intermediate, and depot level maintenance for the CH-53K helicopter. Work will be performed in Stratford, Connecticut (63%); Jupiter, Florida (11%); Chesterfield, Missouri (6%); St. Marcel, France (5%); Rockmart, Georgia (2%); Titchfield, England (2%); Rome, New York (2%); Springfield, New Jersey (2%); Orange, Connecticut (1%); Westbury, New York (1%); Avon, Ohio (1%); and various locations within the continental U.S. (4%), and is expected to be completed in August 2024. Fiscal 2019 research, development, test, and evaluation (Navy) funds in the amount of $5,043,000 will be obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Kiliuda Consulting LLC,* Anchorage, Alaska, is awarded an $18,883,593 indefinite-delivery/indefinite-quantity contract with firm-fixed-price task orders that will be issued to provide business support services for the Naval Surface Warfare Center Panama City Division corporate operations. The services under this contract will provide facilities support (workspace design and physical reconfiguration); visual information support (illustration and photography/videography); security support (excluding law enforcement); Manager's Internal Control program support; material and equipment property management support; travel accounting, management and program analysis; and quality office and office clerical support. Work will be performed in Panama City, Florida, and is expected to be complete by October 2021, and if all options are exercised, would be complete by October 2025. No funding will be obligated by this action. Task orders will primarily be funded with Navy working capital funds. Navy working capital funds will be obligated on task orders as they are issued. This contract was competitively procured as a Section 8(a) small business set-aside with 10 offers received. Offers were solicited via the beta.SAM.gov contract opportunities website. The Naval Surface Warfare Center Panama City Division, Panama City, Florida, is the contracting activity (N61331-20-D-0016). DEFENSE LOGISTICS AGENCY US Foods, Manassas, Virginia, has been awarded a maximum $51,600,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for full-line food distribution. This was a competitive acquisition with one response received. This is a four-year contract with no option periods. Location of performance is Virginia, with an Aug. 11, 2024, ordering period end date. Using customers are Air Force, Army, Marine Corps, Navy and federal civilian agencies. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-3274). Claflin Service Co., Warwick, Rhode Island, has been awarded a maximum $49,500,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for medical equipment and accessories for the Defense Logistics Agency electronic catalog. This was a competitive acquisition with 127 responses received. This is a five-year contract with no option periods. Location of performance is Rhode Island, with an Aug. 10, 2025, ordering period end date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-20-D-0046). Telephonics Corp., Farmingdale, New York, has been awarded a maximum $44,999,380 firm-fixed-price, indefinite-delivery requirements contract for communication interface units. This was a limited source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1 (a)(2). This is a five-year contract with no option periods. Location of performance is New York, with an Aug. 31, 2025, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2025 Army working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Redstone Arsenal, Alabama (SPRRA1-20-D-0060). Dominion Privatization Texas LLC, Richmond, Virginia, has been awarded a $42,075,122 modification (P00040) to a 50-year contract (SP0600-16-C-8312) with no option periods for additional utility services for the electric and natural gas utility systems at Fort Hood, Texas. This modification increases the obligated value from $68,019,912 to $69,377,704. This is a firm-fixed-price with economic-price-adjustment contract. Locations of performance are Virginia and Texas, with a June 30, 2066, performance completion date. Using military service is Army. Type of appropriation is fiscal 2017 through 2067 Army operations and maintenance funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia. Sysco Central Alabama Inc., Calera, Alabama, has been awarded a maximum $13,586,862 fixed-price with economic-price-adjustment, indefinite-quantity contract for full-line food distribution. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a 132-day bridge contract with no option periods. Locations of performance are Alabama and Florida, with a Dec. 19, 2020, ordering period end date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal year 2020 through 2021 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-3282). (Awarded Aug. 7, 2020) ARMY Liqid Inc.,* Broomfield, Colorado, was awarded a $31,850,000 firm-fixed-price contract for high-performance computing modernization programs. Bids were solicited via the internet with three received. Work will be performed at Aberdeen Proving Ground, Maryland, with an estimated completion date of Feb. 6, 2026. Fiscal 2020 other procurement (Army) funds in the amount of $25,480,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity (W912DY-20-F-0508). DigiFlight Inc.,* Columbia, Maryland, was awarded a $15,304,730 modification (P00033) to contract W31P4Q-19-F-E002 for logistic support services for the Apache Attack Helicopter Project Manager's Office. Work will be performed in Columbia, Maryland, with an estimated completion date of Aug. 10, 2021. Fiscal 2020 aircraft procurement appropriations funds in the amount of $15,304,730 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2309332/source/GovDelivery/

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