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October 2, 2020 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

Contract Awards by US Department of Defense – October 1, 2020

U.S. TRANSPORTATION COMMAND

The Federal Express Team, Memphis, Tennessee, has been awarded a modification (P00005) on contract HTC7111-8-D-CC37 in the estimated amount of $1,630,630,000. Team members include American Airlines Inc., Fort Worth, Texas; Amerijet International Inc., Miami, Florida; Atlas Air Inc., Purchase, New York; Federal Express Corp., Memphis, Tennessee; Polar Air Cargo Worldwide Inc., Purchase, New York; Eastern Airlines LLC, Wayne, Pennsylvania; and Hawaiian Airlines Inc., Honolulu, Hawaii. The modification provides continued international long-range and short-range charter airlift services for the Department of Defense. The option period of performance is from Oct. 1, 2020, to Sept. 30, 2022. Fiscal 2021 transportation working capital funds were obligated at award. This modification brings the total cumulative face value of the contract to $3,261,260,000 from $1,630,630,000. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity.

The Patriot Team, Tulsa, Oklahoma, has been awarded a modification on contract HTC711-18-D-CC39 in the estimated amount of $1,447,524,000. Team members include ABX Air Inc., Wilmington, Ohio; Air Transport International Inc., Wilmington, Ohio; JetBlue Airways Corp., Long Island City, New York; Kalitta Air LLC, Ypsilanti, Michigan; Northern Air Cargo LLC, Anchorage, Alaska; Omni Air International LLC, Tulsa, Okla.; United Airlines Inc., Chicago, Illinois; United Parcel Service Co., Louisville, Kentucky; and Western Global Airlines LLC, Estero, Florida. The modification provides continued international long-range and short-range charter airlift services for the Department of Defense. The option period of performance is from Oct. 1, 2020, to Sept. 30, 2022. Fiscal 2021 transportation working capital funds were obligated at award. This modification brings the total cumulative face value of the contract to $2,895,048,000 from $1,447,524,000. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity.

National Air Cargo Group Inc., Orlando, Florida, has been awarded a modification (P00006) on contract HTC711-18-D-CC40 in the estimated amount of $110,406,000. The modification provides continued international long-range and short-range charter airlift services for the Department of Defense. The option period of performance is from Oct. 1, 2020, to Sept. 30, 2022. Fiscal 2021 transportation working capital funds were obligated at award. This modification brings the total cumulative face value of the contract to $220,812,000 from $110,406,000. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity.

Sun Country Inc., doing business as Sun Country Airlines, Minneapolis, Minnesota, has been awarded an indefinite-delivery/indefinite-quantity, fixed-price with economic-price-adjustment contract HTC711-20-D-CC08 with an estimated amount of $59,112,000. This International Charter Airlift Services contract is in support of the Civil Reserve Air Fleet and provides international long-range and short-range charter airlift services for the Department of Defense. Work will be performed globally. The option period of performance is from Oct. 1, 2020, to Sept. 30, 2022. Fiscal 2021 transportation working capital funds were obligated at award. The U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity.

Delta Air Lines Inc., Atlanta, Georgia, has been awarded a modification (P00005) on contract HTC711-18-D-CC41 in the estimated amount of $28,026,000. The modification provides continued international long-range and short-range charter airlift services for the Department of Defense. The option period of performance is from Oct. 1, 2020, to Sept. 30, 2022. Fiscal 2021 transportation working capital funds were obligated at award. This modification brings the total cumulative face value of the contract to $56,052,000 from $28,026,000. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity.

Phoenix Air Group, Inc., Cartersville, Georgia, has been awarded a modification (P00004) to task order HTC711-19-F-1554 in the amount of $7,051,282. This modification provides continued chartered passenger airlift services to the Naval Air Warfare Center. Work will be performed in Point Mugu, San Nicolas Island, and China Lake, California. The option period of performance is from Oct. 1, 2020, to Sept. 30, 2021. Fiscal 2021 transportation working capital funds were obligated at award. This modification brings the total cumulative face value of the task order to $18,350,249 from $11,298,967. U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity.

NAVY

Ambyth Shipping Micronesia Inc., Saipan, Northern Mariana Islands (N68171-21-D-0001); American Roll-On Roll-Off Carrier Group Inc., Parsippany, New Jersey (N68171-21-D-0002); Bahrain Fujairah Marine Services, Manama, Bahrain (N68171-21-D-0003); Black Bull Group Inc., Miami, Florida (N68171-21-D-0004); Bahrain Maritime & Mercantile International BSC, Sitra, Kingdom of Bahrain (N68171-21-D-0005); Cox Logistics, Juffair, Kingdom of Bahrain (N68171-21-D-0016); Crane Worldwide, Houston, Texas (N68171-21-D-0007); Crowley Government Services Inc., Jacksonville, Florida (N68171-21-D-0008); DaeKee Global Co. Ltd., Pusan, South Korea (N68171-21-D-0009); Downie Jones Ship Stores, Bulimba, Queensland, Australia (N68171-21-D-0010); Downie Jones Ship Stores Ltd., Wan Chai, Hong Kong Island, Hong Kong (N68171-21-D-0011); EMS Shipping & Trading GmbH, Leer (Ostfriesland), Niedersachsen, Germany (N68171-21-D-0012); Global Defense Logistics SRL, Constanta, Romania (N68171-21-D-0013); Global Maritime Logistics Support Inc., Olongapo City, Philippines (N68171-21-D-0014); Global Support Inc., Yokohama, Kanagawa, Japan (N68171-21-D-0015); Inchcape Shipping Services Dubai LLC, Dubai, United Arab Emirates (N68171-21-D-0017); Kentucky Defense Services LLC, Covington, Kentucky (N68171-21-D-0018); Multinational Logistic Services Ltd., Gziza, Malta (N68171-21-D-0020); Multinational Logistic Services USA, Longmeadow, Massachusetts (N68171-21-D-0021); National Alliance Management LLC, Las Vegas, Nevada (N68171-21-D-0022); OPS Corp., Pusan, South Korea (N68171-21-D-0023); Parsh Marine (S) Pte. Ltd., Singapore (N68171-21-D-0024); Qube Ports Pty. Ltd., Sydney, New South Wales, Australia (N68171-21-D-0025); Rio Logistics (S) Pte. Ltd., Singapore, Singapore (N68171-21-D-0026); Royal Cargo Inc., Paranaque City, Metro Manila, Philippines (N68171-21-D-0027); Shipping Consultants Associated Ltd., Chatham, Kent, United Kingdom (N68171-21-D-0028); Seabulk Towing Inc. (doing business as Seabulk Logistics Services), Fort Lauderdale, Florida (N68171-21-D-0029); Seaway Filipinas Logistics Inc., Zambales, Zambales, Philippines (N68171-21-D-0031); Stirling Advanced Logistical Services, Amman, Jordan (N68171-21-D-0032); Toll Remote Logistics Pty. Ltd., Melbourne, Victoria, Australia (N68171-21-D-0033); Tsui Wah Ferry Services Co. Ltd., Yau Ma Tei, Kowloon, Hong Kong (N68171-21-D-0034); and Waypoint LLC, Brookings, South Dakota (N68171-21-D-0035), are awarded an estimated $1,061,000,000 multiple award of firm-fixed price, indefinite-delivery/indefinite-quantity contracts to provide husbanding, management and integration services consisting of general charter and hire, utilities, force protection, communications and land transportation services to support maritime forces of the Department of Defense, other U.S. government agencies, and other nations to include Navy Ships, Marine Corps, Military Sealift Command (MSC), Air Force, Army, Coast Guard, North Atlantic Treaty Organization (NATO), and other foreign vessels participating in U.S. military or NATO exercises and missions. The contracts will run concurrently and will include a five-year base ordering period with one five-year option with individual requirements performed under task orders when specific dates and locations are identified. If the option period is exercised, the total estimated value of the contracts combined will have a ceiling value of $2,122,000,000. The ordering period of the contract is expected to be completed by October 2025; if all options are exercised, the ordering period will be completed by October 2030. Work will be performed in thirty geographic regions: United Arab Emirates (14%); Philippines (10%); Djibouti (7%); Eastern U.S. and U.S. territories (6%); Southeastern Asia 2 (5%); Indian Ocean (5%); South Korea (5%); South America (5%); Singapore (4%); Western California (4%); Southeastern Asia 1 (3%); Bahrain (3%); Oman (3%); Oceania (2%); China and Russia (2%); United Kingdom/Western Europe (North Sea) (2%); Italy (2%); Eastern Europe/Black Sea (2%); Western Europe (Mediterranean) (2%); Northern Atlantic (2%); Panama (2%); North America (2%); Japan (1%); Greece (1%); Africa (1%); Middle East (1%); Central America (1%); Caribbean and Bermuda (1%); Eastern U.S. territories (1%); and Western U.S. territories (1%). Due to the fact that the specific requirements for husbanding support cannot be predicted at this time, more specific information about where the work will be performed cannot be currently provided. Fiscal 2021 operations and maintenance (Navy) funds in the amount of $96,000 will be obligated ($3,000 on each of the 32 contracts to fund the contracts' minimum amounts) and funds will expire at the end of the current fiscal year. Additional funds will be obligated at the task order level with the appropriate fiscal year funding as issued by the main type commanders for each area of responsibility. Typical funding issued by each of the customers include operations and maintenance (Navy) funds from U.S. Fleet Forces Command; and working capital funds (Navy) from MSC. The requirement was competitively procured for the award of multiple contracts with the solicitation posted on beta.SAM.gov, Navy Electronic Commerce Online (NECO) and Euro NECO with 36 offers received. The Naval Supply Systems Command Fleet Logistics Center, Sigonella, Naples Detachment, Italy, is the contracting activity.

BAE Systems Technology Solutions and Services Inc., Rockville, Maryland, is awarded a $94,022,896 cost-plus-fixed-fee, cost-reimbursable, firm-fixed-price, indefinite-delivery/indefinite-quantity contract. This contract provides for airborne capabilities integration, including but not limited to sensors, communications systems, weapons systems and control technologies for a variety of manned and unmanned airborne platforms in support of the Airborne Systems Integration Division. Work will be performed in Saint Inigoes, Maryland (39%); Lexington Park, Maryland (29%); Patuxent River, Maryland (17%); Hollywood, Maryland (8%); Yuma, Arizona (4%); and California, Maryland (3%), and is expected to be completed in October 2025. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was competitively procured via an electronic request for proposal; four offers were received. The Naval Air Warfare Command Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-21-D-0001).

Systems Planning and Analysis Inc., Alexandria, Virginia, is awarded an $85,377,546 cost-plus-fixed-fee contract for the acquisition of technical services, program support, assessments, special studies and systems engineering for the Trident II Submarine Launched Ballistic Missile Strategic Weapons system. Work will be performed in Alexandria, Virginia (86%); and Strategic Systems Programs Headquarters, Washington, Navy Yard, Washington, D.C. (14%), with an expected completion date of Sept. 30, 2025. Subject to availability of funding, fiscal 2021 operations and maintenance (Navy) contract funds in the amount of $5,168,031 will be obligated on base award. This contract was a sole-source acquisition in accordance with 10 U.S. Code 2304(c)(1). Strategic Systems Programs, Washington, D.C., is the contracting activity (N00030-21-C-6019).

The Lockheed Martin Corp., Rotary and Mission Systems, Mitchell Field, New York, is awarded a $68,603,033 cost plus incentive fee and cost plus fixed fee contract modification (P00005) to previously awarded and announced contract N00030-20-C-0045 for the U.S. and United Kingdom to provide Strategic Weapon System Trident fleet support, Trident II SSP Shipboard Integration (SSI) Increment 8, SSI Increment 16, Columbia class and U.K. Dreadnought class navigation subsystem development efforts. Work will be performed in Mitchel Field, New York (47%); Huntington Beach, California (36%); Clearwater, Florida (9%); Cambridge, Massachusetts (6%); and Hingham, Massachusetts (2%), with an expected completion date of Nov. 30, 2022. Subject to the availability of funding, fiscal 2021 operations and maintenance (Navy) contract funds in the amount of $42,869,626; fiscal 2021 research, development, test and evaluation (Navy) contract funds in the amount of $4,247,698; and United Kingdom funds in the amount of $21,485,709, will be obligated at time of award. No funds will expire at the end of the current fiscal year. This contract was a sole-source acquisition in accordance with 10 U.S. Code 2304(c)(1) and (4). Strategic Systems Programs, Washington, D.C., is the contracting activity.

The Boeing Co., Huntington Beach, California, is awarded a $59,097,371 cost-plus-incentive-fee, and cost plus fixed-fee level of effort contract (N00030-21-C-6002) to provide the U.S. and United Kingdom Trident II (D5) maintenance, rebuilding and technical services in support of the Navigation subsystem. Work will be performed at Huntington Beach, California (63%); and Heath, Ohio (13%), along with field engineering conducted at Puget Sound, Washington (4%); Heath, Ohio (4%); Mitchell Field, New York (4%); Norfolk, Virginia (4%); Kings Bay, Georgia (4%); Port Canaveral, Florida (2%), and Faslane, Scotland (2%). Work is expected to be completed Sept. 30, 2022 (inclusive of all option periods). United Kingdom funds in the amount of $893,383 are being obligated on this award. Subject to the availability of funds, fiscal 2021 operations and maintenance (Navy) contract funds in the amount of $27,877,125 will be obligated. No funds will expire at the end of the current fiscal year. This contract was a sole-source acquisition pursuant to 10 U.S. Code 2304(c)(1). Only one responsible source and no other supplies or services will satisfy agency requirements. Strategic Systems Programs, Washington, D.C., is the contracting activity.

Northrop Grumman Systems Corp.- Marine Systems (NGSC-MS), Sunnyvale, California, is awarded a $29,541,061 cost-plus incentive-fee contract (N00030-21-C-1010) for fiscal 2021 ongoing support of the Trident II (D-5) deployed SSBN and the SSGN Underwater Launcher Systems (ULS), NGSC-MS will provide technical engineering support and integration for D5, and SSGN Attack Weapon System (AWS). This support provides field services at sites and shipyards. Work will be performed in Sunnyvale, California (52%); Bangor, Washington (18%); Kings Bay, Georgia (14%); Rocket Center West Virginia (7%); Cape Canaveral, Florida (4%); St. Charles, Missouri (3%); and Camarillo, California (2%). The base year performance period is Oct. 1, 2020, to Sept. 30, 2021. Subject to availability of funds, fiscal 2021 operations and maintenance (Navy) contract funds in the amount of $29,541,061 will be obligated on this award. No funds will expire at the end of the current fiscal year. This contract includes firm-fixed-price, cost-plus-incentive-fee and cost-plus-fixed-fee option contract line items. The contract was not competitively procured. Strategic Systems Programs, Washington, D.C., is the contracting activity.

General Dynamics Ordnance and Tactical Systems, Bothell, Washington, was awarded a not-to-exceed $24,072,455 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the purchase of gas generators for use in the suppression system onboard the V-22 aircraft to provide explosion/fire suppression capabilities. The contract will include a three-year base ordering period with no options. Work will be performed in Moses Lake, Washington, and is expected to be completed by September 2023. This effort combines purchases with procurement and ammunition (Navy and Marine Corps) funds (82.9%); ammunition (Air Force) funds (14.7%); and Foreign Military Sales (FMS) funding (Japan) (2.4%) under the FMS program. Funds in the amount of $7,802,197 will be issued for delivery order N00104-20-F-B501 that will be awarded concurrently with the contract and funds will not expire at the end of the current fiscal year. One source was solicited for this non-competitive requirement under authority 10 U.S. Code 2304 (c)(1), with one offer received. The Naval Supply Systems Command, Weapon Systems Support, Mechanicsburg, Pennsylvania, is the contracting activity (N00104-20-D-B501). (Awarded Sept. 29, 2020)

Science Applications International Corp., Reston, Virginia, was awarded a $22,614,979 combination cost-plus-fixed-fee, cost reimbursable, and firm-fixed-price type contract. The contract is for the First Article testing and production of the All Up Round MK 28 MOD 2 Exercise and MK 29 MOD 0 Warshot fuel tank assemblies for the MK 48 heavyweight torpedo, engineering services with associated other direct costs and contract data requirements list in support of the Naval Undersea Warfare Center Keyport Undersea Warfare Systems. This contract includes options which, if exercised, would bring the cumulative value of this contract to $142,265,948. Work will be performed in Bedford, Indiana (90%); and Middleton, Rhode Island (10%), and is expected to be completed by March 2022. Fiscal 2020 Foreign Military Sales/Armament Cooperative Program funds in the amount of $19,639,611 (87%); fiscal 2017 Navy Replace in Kind funds in the amount of $2,354,790 (10%); and fiscal 2020 Navy Replace in Kind funds in the amount of $620,578 (3%), will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with one offer received. The Naval Undersea Warfare Center Division, Keyport, Keyport, Washington, is the contracting activity (N00253-20-C-0010). (Awarded Sept. 30, 2020)

FLIR Surveillance Inc., Wilsonville, Oregon, is awarded a $14,565,377 firm-fixed-price, indefinite-delivery/indefinite-quantity contract with a five-year ordering period for BRITE Star Block II systems, repair actions, data, provision item order, training and engineering services. Work will be performed in Wilsonville, Oregon, and is expected to be completed by September 2025. This contract includes purchases for the Czech Republic under the Foreign Military Sales (FMS) program. FMS Czech Republic funding in the amount of $8,179,077 will be obligated at time of award and will not expire at the end of fiscal year. This contract was not competitively procured in accordance with 10 U.S. Code 2304(c)(1); only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Surface Warfare Center, Crane, Indiana, is the contracting activity (N00164-20-D-JQ51).

AIR FORCE

The Boeing Co., El Segundo, California, has been awarded a $298,369,312 firm-fixed-price contract for the Evolved Strategic Satellite Communications program. This contract provides a prototype payload to develop hardware and software. Work will be performed in El Segundo, California, and is expected to be complete by May 2025. This award is the result of a sole-source acquisition. Fiscal 2020 research and development funds in the amount of $29,447,172 are being obligated at the time of award. The U.S. Space Force, Space and Missile Systems Center, Development Corps, Los Angeles Air Force Base, California, is the contracting activity (FA8808-20-C-0047). (Awarded Sept. 30, 2020)

DynCorp International LLC, Fort Worth, Texas, has been awarded a $70,743,464 modification (P00042) to previously awarded contract FA4890-17-C-0005 for Air Force Central Command War Reserve Materiel (WRM). This modification provides for the exercise of Option Year Four for WRM services being provided under the basic contract. Work will be performed at Shaw Air Force Base, South Carolina; Kuwait; Oman; Qatar; and the United Arab Emirates, and is expected to be complete by September 2021. This modification brings the total cumulative face value of the contract to $326,492,114. Fiscal 2021 operations and maintenance funds in the amount of $69,799,021 are being obligated at the time of award. Headquarters Air Combat Command, Joint Base Langley-Eustis, Virginia, is the contracting activity.

Gryphon Technologies L.C., Washington, D.C., has been awarded a $49,149,327 hybrid firm-fixed-price, cost-plus-fixed-fee with a cost reimbursable line item, indefinite-delivery/indefinite-quantity contract for the processing, analysis and quantitative evaluation of environmental samples and other associated services in support of the Air Force Technical Applications Center's (AFTAC) mission. This contract also analyzes calibration samples and conducts studies on analytical techniques, instrumentation and data handling advancements. Work will be performed in Sunol, California, and is expected to be completed Sept. 30, 2028. This award is the result of a sole-source acquisition. Fiscal 2021 operations and maintenance funds in the amount of $4,119,773 are being obligated at the time of award. Headquarters Air Combat Command, Acquisition Management and Integration Center, Patrick Air Force Base, Florida, is the contracting activity (FA7022-21-D-0001).

Dark Wolf Solutions LLC, Chantilly, Virginia, has been awarded a $9,087,314 firm-fixed-price task order for cyber innovation services. This contract provides for software penetration testing and adversarial assessment. Work will be performed at Hill Air Force Base, Utah, and is expected to be completed April 11, 2022. Fiscal 2020 research, development, test and evaluation funds in the amount of $539,203 are being obligated at the time of award. The Air Force District of Washington, Joint Base Andrews – Naval Air Facility, Maryland, is the contracting activity (FA7014-21-F-0012).

The Boeing Co., El Segundo, California, has been awarded a $7,176,568 cost-plus-fixed-fee modification (P00121) to previously awarded Wideband Global Satellite Communication (SATCOM) (WGS) Block II follow-on contract FA8808-10-C-0001. This contract modification provides for the acquisition of engineering support for a hosted payload accommodation effort. Work will be performed in El Segundo, California, and is expected to be completed December 2021. This modification brings the total cumulative face value of the contract to $2,514,827,988. Fiscal 2020 research, development, test and evaluation funds in the amount of $4,916,699 are being obligated at the time of award. The Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity.

DEFENSE LOGISTICS AGENCY

UPDATE: Federal-Fabrics-Fibers Inc.,* Lowell, Massachusetts (SPE1C1-21-D-1400), has been added as an awardee to the multiple award contract for commercial shelters issued against solicitation SPE1C1-18-R-0003 and awarded May 10, 2019.

* Small business

https://www.defense.gov/Newsroom/Contracts/Contract/Article/2369073/source/GovDelivery/

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  • Curtiss-Wright acquiring PacStar for $400 million

    September 28, 2020 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

    Curtiss-Wright acquiring PacStar for $400 million

    Andrew Eversden WASHINGTON — North Carolina-based defense technology company Curtiss-Wright announced Sept. 24 that it had entered into an agreement to acquire Pacific Star, a major tactical communications vendor for the U.S. Army. Curtiss-Wright, based in North Carolina, bought PacStar for $400 million in an effort to boost its network communications business. According to a press release from Curtiss-Wright, PacStar's business will operate within the Curtiss-Wright defense business and is expected to generate $120 million in sales in 2020. “The acquisition of PacStar establishes Curtiss-Wright as a critical supplier of advanced tactical and enterprise network communications solutions supporting a broad spectrum of high-priority U.S. military force modernization programs,” said David C. Adams, chairman and CEO of Curtiss-Wright Corporation, in a statement. “The combination of Curtiss-Wright's mission-critical mobile and secure COTS-based processing, data management and communications technologies with PacStar's highly complementary hardware and software solutions will enable us to deliver best-in-class platform network integration and tactical data link network management to the warfighter.” Curtiss-Wright ranked No. 72 in Defense News' Top 100 annual report on the world's largest defense companies. PacStar is an important vendor for the Army's tactical network modernization effort, where it provides products to improve tactical expeditionary communications. Back in July, PacStar was awarded work to support the fielding of satellite baseband communications to three Expeditionary Signal Battalion-Enhanced (ESB-E) units by Army Program Executive Office Command, Control, Communications-Tactical. PacStar also provides networking and communications capabilities for the Marine Corps' Networking On-The-Move (NOTM) program. “PacStar, which represents the largest transaction in Curtiss-Wright's recent history, is well-positioned to benefit from the military's continued investment in robust, secure and integrated battlefield network management and is expected to yield significant opportunities for revenue growth," Adams said. "Further, this acquisition supports Curtiss-Wright's financial objectives for long-term profitable growth and strong free cash flow generation within our disciplined and balanced capital allocation strategy.” https://www.c4isrnet.com/industry/2020/09/25/curtiss-wright-acquiring-pacstar-for-400-million/

  • Taking sides: Italian defense industry rep attacks Franco-German fighter deal

    February 18, 2019 | International, Aerospace

    Taking sides: Italian defense industry rep attacks Franco-German fighter deal

    By: Tom Kington ROME — Plans by France and Germany to team up on a next-generation fighter are an affront to Italy and will weaken the European Union, according to the head of an Italian defense industry association. In a strong attack on the Future Air Combat System, or FCAS, deal, Guido Crosetto told Defense News that Italy would seek closer ties with the U.K. as a consequence, despite the U.K.'s pending exit from the EU. “The fighter deal between Germany and France leaves all others on the margins. And since the only other country with equal industrial capabilities is Italy, the deal is clearly against Italy,” he said. “Have France and Germany tried to get the Italy involved? It doesn't look that way,” he added. “Additionally, if two European stakeholders strike deals together, how should the others react? This risks weakening the EU, while giving more justification to those trying to weaken the EU.” Crosetto is the head of the Italian defense industry association AIAD. After signing to pursue a joint fighter last year, France and Germany this month awarded home players Airbus and Dassault a first contract for a concept study worth €65 million (U.S. $73 million), while Safran Aircraft Engines and MTU Aero Engines announced a partnership to supply propulsion. The FCAS program covers both manned and unmanned aircraft, which are due in service from 2040 to replace French Rafale fighters and Eurofighters currently flown by Germany. Showing that Paris and Berlin do want additional partners, Spain signed up Feb. 14, stating it would become an equal partner on the program. But in the belief that Germany and France will call the shots, Crosetto said Italy would do well to sign up with the U.K. to work on the British future fighter known as Tempest. “A jilted partner has the right to look around for other partners, and the U.K. has asked us to join Tempest,” he said. Italy's junior defense minister, Angelo Tofalo, said in December that the country “needed to enter the program immediately.” Crosetto said he was not alarmed by the potential difficulty of doing business with the U.K. if and when it leaves the European customs union, which is due to happen this year. The split will be a headache for Italy's defense champion Leonardo, which owns facilities in the U.K. and would spearhead Italy's work on Tempest. “Brexit would mean more red tape for Leonardo but would not be a difficulty — the Italy-U.K. relationship would remain very positive,” he said. As Germany and France signal progress on FCAS, they are also drawing closer politically in the face of Brexit and the rise of populist governments in Europe, including in Italy. Last month, Italian Prime Minister Giuseppe Conte told Italian daily Corriere della Sera he was upset by France's offer to Germany to get it a permanent seat at the U.N. Security Council, despite long-term plans in Europe to give a new seat to the EU, and not to an individual country. Italy is already involved in a row with France over migrant quotas and Italian support for the gilet jaunes protesters in France, which have targeted the government of Emmanuel Macron. Crosetto said the current rift with Paris was not a cause of Italy's being sidelined on the fighter deal. “That predates the recent rows,” he said. The new Franco-German tie-up suggests the two countries will now look to work together on joint programs that can draw on cash made available by the new European Defence Fund, possibly isolating Italy. Crosetto said the Italian government was now obliged to invest more heavily in Italy's defense industry to make it more competitive and better able to grab slices of the funding. “Industry now needs the government to invest more,” he said. https://www.defensenews.com/global/europe/2019/02/15/taking-sides-italian-defense-industry-rep-attacks-franco-german-fighter-deal/

  • Global Defense Spending Decline Expected As Nations Deal with Coronavirus

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

    Global Defense Spending Decline Expected As Nations Deal with Coronavirus

    Experts see domestic projects taking priority over national security in the coming years. After five straight years of growth, global defense spending is expected to decline in the coming years as nations deal with the economic fallout of the coronavirus pandemic, analysts say. In 2019, global defense spending topped $1.9 trillion, according to the Stockholm International Peace Research Institute's latest tally. The U.S. represents 38 percent of the world's defense expenditures and with China, the two superpowers account for 52 percent of the world's defense spending. But because of COVID-19, experts anticipate a shift government spending worldwide toward domestic projects and away from weapons and the military. “What we can expect is that spending [is] really going to decrease,” Nan Tian, a defense spending expert with the institute, said Tuesday during a Stimson Center webcast. “We've seen this historically following the [2008 and 2009 financial] crisis where many countries in Europe really started to cut back on military spending.” Even before the coronavirus sent the global economy into a tailspin, U.S. defense spending had been predicted to flatten in the coming years. Now with trillions of dollars being spent on massive coronavirus stimulus packages, flat defense spending levels could wind up being a best-case scenario. “In today's world with [coronavirus], flat defense budget, I think, is what everybody is hoping for because it could go the other direction; it could go negative,” Hawk Carlisle, president and CEO of the National Defense Industrial Association and a retired four-star commander of Air Combat Command and Pacific Air Forces, said in an interview Tuesday. “This is going to be years to climb out of.” One reason for the expected spending dip: the deficit. Regardless of the results of the November presidential and congressional elections, deficit reduction is likely to become a priority. A recent estimate pegs the 2020 deficit at $3.8 trillion. But it is expected that a Trump re-election would keep Republicans in more of a spending mood. “If the presidency goes to a Democrat, then Republicans are going to get more about being fiscal conservatives again sooner,” Todd Harrison, a defense budget expert with the Center for Strategic and International Studies, or CSIS, said during a Monday webcast. “If Trump wins a second term, we probably have another year or two reprieve from that.” Mackenzie Eaglen of the American Enterprise Institute is wary that lawmakers eager to reduce federal spending in the wake of coronavirus bailouts could enact a deficit-cutting measure akin to the Budget Control Act of 2011, which capped defense spending annually between 2013 and 2021. “The Budget Control Act by another name ... could come as fast as next [fiscal] year,” she said on the same webcast. While defense and security spending is typically a top priority of Republicans and defense-minded Democrats, stabilizing the U.S. economy and healthcare could become a higher priority regardless of who wins the election and control in Congress. Among voters in both parties, there is wide public support for reducing expensive overseas military interventions. DON'T MISS The Pentagon Will Use AI to Predict Panic Buying, COVID-19 Hotspots How China Sees the World Did the Coronavirus Escape from a Chinese Lab? Here's What the Pentagon Says The 1918 flu and the U.S. military Haircuts in a Time of Coronavirus? “[I]solationism may exert a countervailing force, as there is demand to steer resources away from defense and towards domestic needs (healthcare, education, jobs),” Byron Callan, an analyst with Capital Alpha Partners, wrote in an April 23 note to investors. “[W]e are seeing that awarding disproportionate resources to military spending may be weakening the resilience of other sectors in our economy,” Mandy Smithberger — director of the Straus Military Reform Project at the Center for Defense Information, part of the Project on Government Oversight — said on the Stimson Center webcast. “I think we are going to be seeing real political debate about how much money should go to military spending, how much we should be prioritizing arms sales and interests of the defense industry,” she said. Unlike the past decade when foreign arms sales, to some extent, were a backstop to weapon makers amid U.S. defense spending declines, this time around will likely be different since the world economy is dealing with coronavirus. Smithberger said low oil prices could weaken the buying power in the region that spends heavily on U.S. weapons. While the U.S. and China remain the top two defense spenders, last year India and Russia jumped ahead of Saudi Arabia, which fell to fifth on the list. Germany climbed from ninth to seventh — jumping ahead of the U.K. and Japan. NATO allies collectively spent just over $1 trillion. All of that spending is likely to drop. https://www.defenseone.com/politics/2020/04/global-defense-spending-decline-expected-nations-deal-coronavirus/164997

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