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August 3, 2021 | International, Aerospace, Naval, Land, C4ISR, Security

Contracts for August 2, 2021

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  • Latvia relaunches ground vehicle competition following industry complaints

    October 3, 2019 | International, Land

    Latvia relaunches ground vehicle competition following industry complaints

    By: Aaron Mehta WASHINGTON — In recent years, the Baltic nation of Latvia has gone on a modernization spending spree, putting down cash for new Black Hawk helicopters, self-propelled howitzers, reconnaissance vehicles and anti-tank weapons. But there's another platform competition on the horizon, with officials in Riga having relaunched a stalled contest for tactical wheeled vehicles. In 2018, Latvia's Ministry of Defence awarded to Finland's Sisu Auto a €181 million (U.S. $197 million) deal for four-wheel drive armored vehicles. But the contract was overturned in early 2019 by a government watchdog after two bidders — AM General from the United States, and South Africa's Paramount Group — filed complaints over the process. Turkish firm Otokar had also bid on the program at the time. The recompete has seen offers from more than 10 companies for what will be a government-to-government agreement for a final contract. The price for the new contract will depend on the eventual winner and is not locked in at the Sisu contract level. Speaking to Defense News in September, Janis Garisons, state secretary for the MoD, said it's unlikely the government will reach a decision on the winner of the competition in the short term. “What we have to do, we will test the vehicles, because we want to ensure we are looking at vehicles fit for our terrain, that can drive into our forests and we are not [getting] stuck on the roads,” said Garisons, who is the No. 2 official at the ministry. “We will look also at the industrial part because we very much interested to have [the] ability to maintain those vehicles.” The last point is key, as Latvia is concerned about the ability to maintain its new purchases, something the country has struggled with, according to Garisons. “We don't want to be in that situation anymore.” The country is also focused on building up its domestic industrial base so that much of the maintenance on its new equipment can be done in-country, in case of conflict. Along those lines, the competition for a four-wheel drive vehicle is likely be the last big platform purchase for a while, as the ministry is turning its attention toward procurement efforts to benefit training and sustainment. “Now we face trying to implement everything and put [them] into service. This takes time, and of course all logistical tails, which goes with that,” he said. “Therefore, we now have to concentrate more on — it's not very fancy things, but basically the training is going on already on all those capabilities that [have been bought], but now we have to ensure all the logistical issues are solved and maintained and sustainment is ensured.” Regarding research and development, Latvia is working on a joint effort with Estonia to produce unmanned ground vehicles. “That is something for the future capabilities. The goal is to understand our limits and how to engage our companies, also, coming up with solutions for autonomous systems,” Garisons said. “Because I think the biggest issue right now is how to ensure that those unmanned vehicles can operate autonomously and not need the soldier operating, as that doesn't add much value.” https://www.defensenews.com/2019/10/02/latvia-relaunch-ground-vehicle-competition-following-industry-complaints

  • How military teams can optimize data, decision-making at tactical edge

    October 19, 2022 | International, C4ISR

    How military teams can optimize data, decision-making at tactical edge

    Simply having a lot of data doesn't mean anyone's gaining actionable insights from it.

  • Heckler & Koch — maker of the Marine Corps M27 — is in dire straits

    June 13, 2019 | International, Other Defence

    Heckler & Koch — maker of the Marine Corps M27 — is in dire straits

    By Ian D'Costa For decades, German arms giant Heckler & Koch has served as the gold standard for military and civilian weapons manufacturing — building revolutionary and oftentimes game-changing rifles, machine guns, grenade launchers, submachine guns and pistols for a variety of customers including special operations forces, conventional infantry units and law enforcement agencies. After a lackluster 2018, reports indicate that H&K is now struggling to keep its head above water, with the hopes that boosting sales in FY2019 buys the company at least another year to come out of the red and fix the situation it's in. The Tactical Wire recently reported that German business journals have already predicted the end for what was once one of the most powerful arms manufacturers in the world. In fact, the situation is so bad that, as The Firearm Blog reported just last month, H&K employees jointly voted to increase weekly work hours without paid overtime, as well as nixed a one-off payment of 400 Euros per head for the month of July, so as to provide their beleaguered company some form of relief. H&K's financial woes stem primarily from diminishing sales, so much so that FY2018 would have seen the company tank had it not been for “two bridging loans from an unnamed major shareholder.” As the company's preexisting contracts with various international buyers are fulfilled, it has faced immeasurable difficulty generating new large-scale contracts with any of its products. According to Neue Zürcher Zeitung, after KPMG conducted an audit of H&K in 2018, it was forced to insert a red flag warning that: “the lack of liquidity endangers the continued existence of Heckler & Koch." KPMG went on to state that the only way H&K would survive going forward is to generate a considerable bump in revenue over previous years, or face bankruptcy. Earlier this year, H&K completed production and delivery of the M27 IAR (a derivative of the HK416) to the US Marine Corps. However, contracts with countries in the process of revamping their small arms arsenals, such as Portugal, have failed to materialize with these countries opting for weapons from other manufacturers. 2019 has also seen the imposition of a multi-million dollar fine on H&K by a German court after it was discovered that the company violated Germany's War Weapons Control Act through the illegal sales of rifles to Mexican states affected considerably by drug-trade violence. H&K's hopes more than likely rest in securing a massive contract yet to be tendered by the German government for the long-term replacement of the German army's G36 assault rifles, another H&K product though one which didn't necessarily live up to the next-generation hype that earlier surrounded it. Whether or not H&K will win the contract is a completely different question altogether, as it's also standard German defense procurement procedure to take into account the fiscal health and economic well being of the companies which have bid for larger contracts... and that's not looking too good for H&K. It should also be noted that H&K is currently in the process of reequipping the French army with HK416 rifles to replace the FAMAS bullpup rifle platform with an overall mass order of over 93,000 units. The Norwegian government also contracted the company to supply HK416s to the Norwegian Armed Forces earlier this year. However, that might not be enough to save H&K. Should H&K lose out on the German G36 replacement contract, this could spell the end for the 71 year-old German small arms producer, and a potentially new beginning for a restructured company in its place. https://www.militarytimes.com/off-duty/gearscout/irons/2019/06/12/heckler-koch-maker-of-the-marine-corps-m27-is-in-dire-straits/

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