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September 17, 2018 | International, Naval

Fincantieri, Leonardo, tussle over acquisition ahead of French tie-up

By:

ROME — Italy's two state-controlled defense champions, Leonardo and Fincantieri, have fought an unusual battle over the acquisition of a smaller company as they jockey for position ahead of their expected integration of naval work with French industry.

Shipyard Fincantieri thought it had sewn up the purchase of Italian firm Vitrociset in August, only for Leonardo to snatch it from under its nose on Sept. 7, leaving the Italian government to step in to mediate.

The tussle between two firms that both answer to the Italian state and closely cooperate on naval programs around the world is due to new rivalry as both edge toward teaming on naval programs with France's Naval Group.

The Italo-French deal is still being thrashed out, but may see a 10 percent share swap between Naval Group and Fincantieri and joint export campaigns to reduce the fractured nature of the European shipbuilding industry.

The deal automatically involves Leonardo since it provides electronics, guns and radars for Fincantieri's ships. But Leonardo CEO Alessandro Profumo has expressed concerns that regarding ships built or marketed jointly by Fincantieri and the French, his systems may be overlooked in favor of those produced by Thales, which is a shareholder in Naval Group.

Full article: https://www.defensenews.com/industry/2018/09/14/fincantieri-leonardo-tussle-over-acquisition-ahead-of-french-tie-up

On the same subject

  • Should the military treat the electromagnetic spectrum as its own domain?

    November 7, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

    Should the military treat the electromagnetic spectrum as its own domain?

    By: Nathan Strout Military leaders are reluctant to treat the electromagnetic spectrum as a separate domain of warfare as they do with air, land, sea, space and cyber, even as the service increasingly recognize the importance of superiority in this area. At the Association of Old Crows conference Oct. 30, representatives from the Army, Navy and Air Force weighed in on a lingering debate: whether the electromagnetic spectrum should be considered its own domain. In short, while the spectrum can legitimately be described as a physically distinct domain, it does not make sense logistically for the Department of Defense to declare it a separate domain of warfare, they said. “It's something that we've had a lot of discussion about ... In one way, you can argue that the physical nature of the electromagnetic spectrum, the physical nature of it being a domain. However, I understand the implications and those are different challenges for a large organization like the Department of Defense. So I think that there's a little bit of a different discussion when you talk about domain and what that implies for the Department of Defense and each of the departments in a different way,” said Brig. Gen. David Gaedecke, director of electromagnetic spectrum superiority for the Air Force's deputy chief of staff for strategy, integration and requirements. Regardless of whether it's an independent domain, military leaders made clear that leveraging the electromagnetic spectrum is a priority for every department and every platform. “We're going to operate from strategic down to tactical, and EMS ... is going to enable all of our forces to communicate and maneuver effectively, so we'll have a layered approach across all the domains that we operate in,” said Laurence Mixon from the Army's Program Executive Office for Intelligence, Electronic Warfare and Sensors. “EMS is definitely an aspect of the operational environment that every tactician has to be aware of, understand and leverage. And on the acquisition side we have to consider EMS when we are developing every one of our systems. I think since EMS crosses all of the domains that we currently have today that we identify and use in the joint parlance--I don't think the Army is ready to call it a domain." Similarly, while the Navy is working to understand how EMS works best within the maritime domain, Rear Adm. Steve Parode, director of the Navy's Warfare Integration Directorate, N2/N6F, indicated that there was no rush to declare EMS a separate domain. “For the Navy, we're pretty comfortable with the way we are into the maritime domain as our principal operational sphere. We are working through understanding the EMS and the way it relates to physical properties in that domain. We know where we're strong and we know where we're weak. And we understand principally why we're weak. We're making decisions about how to get better,” said Parode. https://www.c4isrnet.com/electronic-warfare/2019/11/06/should-the-military-treat-the-electromagnetic-spectrum-as-its-own-domain/

  • British Defence Ministry reveals why a drone program now costs $427M extra

    January 27, 2020 | International, Aerospace

    British Defence Ministry reveals why a drone program now costs $427M extra

    By: Sebastian Sprenger Correction: A previous version of this story misidentified the cost increase to Britain's Protector acquisition program. The program is said to now cost an extra £325 million, with £187 million of that attributed to a delivery delay. LONDON — The British Defence Ministry's top civilian has identified in a letter to lawmakers the reasons why a drone acquisition program has experienced a near 40 percent hike in costs. The Ministry of Defence decided to delay by two years the delivery of 16 General Atomic Protector RG Mk1 drones to replace the Royal Air Force's MQ-9 Reaper fleet, the letter to Parliament's Public Accounts Committee said. Stephen Lovegrove, the ministry's permanent secretary, cited that decision as the main reason for the £325 million (U.S. $427 million) cost increase to the program, as £187 million of that could be attributed to the delay. “The cost growth and time delay to the program imposed in July 2017 were outside of program tolerances but were the result of the need to ensure the affordability of the overall defence program,” Lovegrove wrote in his letter. The MoD is currently in negotiations with the U.S. over a deal to build the first three of the 16 Protectors scheduled to be purchased for the RAF. The final number of vehicles on order could eventually expand beyond 16 — subject to the MoD's fragile finances in the coming years unless defense gets a sizable increase in the Conservative government's next budget round due later this year. The letter was sent Nov. 5 but has only recently been made public. Lovegrove detailed further causes of the cost increase rise in the drone program, which was expected to cost £816 million when it was approved by the MoD in 2016. Aside from the increased costs caused by the delay, the letter said that the fall in the value of the pound against the dollar accounted for £50.8 million of the price rise, and a new primary sensor cost another £64 million. Other unspecified program costs accounted for a further £23 million. The pound has firmed up against the dollar a little since the Conservative Party won the general election in December, which may lessen the impact of increased costs for the moment. The new primary sensor investment involves provision of an improved electro-optical and infrared sensor. The letter said the investment was to avoid future obsolescence issues. Consideration is still being given to the purchase of what is known as a “due regard air-to-air radar” designed for vital detect-and-avoid duties on the platform. Protector, which is the British name for its version of the new General Atomics MQ-9B SkyGuardian, is scheduled to achieve initial operating capability in November 2023, the letter read. The vehicle will replace the current fleet of MQ-9 Reapers, which the RAF has operated almost constantly during the last few years over Afghanistan and the greater Middle East. Lovegrove said the MoD had compared Protector with other options to meet the requirement but the General Atomics platform remained the best value for money. “A comparison was made between: developing a new remotely piloted aircraft system capability (either collaboratively or nationally); procuring the current Reaper Blk 5 (as used by the US Air Force and others); and procuring Protector,” he said. “This concluded that procuring Protector represented best value for money, as its higher performance meant that the operational task could be delivered by procuring fewer air vehicles. The 2-year delay and resultant cost increase have not undermined this value for money case ... it remains affordable despite the cost growth,” the permanent secretary added. Lovegrove said the biggest problem for the Protector program was not the platform itself but the availability of trained crew in the run-up to initial operating capability. “The most significant risk to the Protector program is the RAF's ability to generate and sustain the volume of trained personnel necessary to assure IOC in Nov 2023. The Protector work force builds on the current Reaper force; training and retaining sufficient remotely piloted aircraft system crews has historically proved challenging and is being closely monitored,” the letter said. The Protector is expected to fly longer and hit harder than the Reaper. The UAV will also fly in nonsegregated airspace in places like the U.K . in September, the MoD and General Atomics signed a significant deal to complete the test and evaluation activities required to fly the system in civil airspace. The first test and evaluation aircraft is due to be delivered next year subject to the successful completion of the production contract. An initial production deal is currently in negotiation, with aiming of inking a deal in the next few months. In a first for the system, the SkyGuardian version of the medium-altitude, long-endurance drone flew across the Atlantic Ocean in July from Grand Forks, North Dakota, to RAF Fairford in England. The flight covered 3,760 nautical miles in 24 hours and 2 minutes. https://www.defensenews.com/unmanned/2020/01/24/british-defence-ministry-reveals-why-a-drone-program-now-costs-245m-extra/

  • Contract Awards by US Department of Defense - February 10, 2020

    February 11, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - February 10, 2020

    NAVY Carahsoft Technology Corp., Reston, Virginia, is one of eight companies to be awarded a multiple-award, firm-fixed-price Department of Defense (DoD) Enterprise Software Initiative (ESI) blanket purchase agreement (BPA) in accordance with the firms' General Services Administration (GSA) Federal Supply Schedule contracts. This agreement is being awarded as part of a multi-reseller/multi-software publisher software category management award for commercial-off-the-shelf information technology asset management software; software maintenance support; information technology professional services; and related services in support of DoD ESI and under the direction of Office of Management and Budget, Enterprise Software Category. The software publisher under this agreement is Splunk. The BPA provides for the purchase of Splunk products and services by the DoD, U.S. intelligence community, and the Coast Guard. The overall potential value of this category of BPAs is $820,450,000. The ordering period will be for a maximum of 10 years from Feb. 10, 2020, through July 13, 2029. This BPA is issued under DoD ESI in accordance with the policy and guidelines in the Defense Federal Acquisition Regulation Supplement, Section 208.74. This BPA will not obligate funds at the time of award. Funds will be obligated as task orders using operations and maintenance (DoD) funds. Requirements will be competed among the awardees in accordance with Federal Acquisition Regulation 8.403-3(c)(2), and the successful contractor will receive firm fixed-price orders. This BPA was competitively procured via the GSA E-Buy web site among 679 vendors. Eight offers were received and eight were selected for award. Naval Information Warfare Center Pacific, San Diego, California, is the contracting activity (N66001-20-A-0022). Orion Construction Corp., Vista, California (N62473-18-D-5860); Bilbro Construction Co., Inc.,* Escondido, California (N62473-18-D-5861); Reyes Construction Inc., Pomona, California (N62473-18-D-5862); M. A. Mortenson Co., doing business as Mortenson Construction, Minneapolis, Minnesota (N62473-18-D-5863); Baldi Bros. Inc.,* Beaumont, California (N62473-18-D-5864); Granite Construction Co., Watsonville, California (N62473-18-D-5865); and Hal Hays Construction Inc., Riverside, California (N62473-18-D-5866), are awarded $91,000,000 to increase the aggregate capacity of the previously-awarded suite of firm-fixed-price, indefinite-delivery/indefinite-quantity, multiple award construction contracts. The maximum dollar value including the base year and four option years for all seven contracts combined is increased from $249,000,000 to $340,000,000. The contracts are for new construction, renovation, and repair of various heavy horizontal and civil engineering construction projects at various government installations within the Naval Facilities Engineering Command (NAVFAC) Southwest area of operations. All work will be performed in California (90%); Arizona (6%); Colorado (1%); Nevada (1%); New Mexico (1%); and Utah (1%). No funds are being obligated on this award. No funds will expire. Future task orders will be primarily funded by military construction, Navy; operations and maintenance (O&M), Navy; O&M, Marine Corps; and Navy working capital funds. The original contract was competitively procured via the Navy Electronic Commerce Online website, with 18 proposals received. The NAVFAC Southwest, San Diego, California is the contracting activity. The Boeing Co., St. Louis, Missouri, is awarded $22,200,000 for ceiling-priced delivery order N00383-20-F-0A30 under previously-awarded basic ordering agreement N00383-17-G-A301 for the procurement of trailing edge flaps in support of the F/A-18 C-D aircraft. Work will be performed in Emmen, Switzerland (60%); and St. Louis, Missouri (40%). Work will be completed by February 2023 with no option periods. Switzerland funds in the amount of $10,878,000 will be obligated at the time of award and funds will not expire at the end of the current fiscal year. Switzerland (100%) funds will be used under the Foreign Military Sales program. One company was solicited for this sole-sourced requirement under authority 10 U.S. Code 2304 (c)(4) and in accordance with Defense Federal Acquisition Regulation Supplement 206.302-4, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity. Doyon Management Services LLC,* Federal Way, Washington, was awarded a $7,898,803 firm-fixed-price contract for the retrofit and upgrade of Substation 1, Building 5100 at Naval Base Kitsap. The work to be performed provides for the retrofit of 15 kV vacuum breakers, installation of new 15 kV vacuum breakers in Substation 1, as well as upgrades, switchgear door replacements, new protective relays, protective device coordination, installation of raceways, wire, fiber optic, cabling systems and battery replacements. Work will be performed in Silverdale, Washington, and is expected to be completed by September 2021. Fiscal 2020 operations and maintenance, Navy contract funds in the amount of $7,898,803 are obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online website with two proposals received. The Naval Facilities Engineering Command, Northwest, Silverdale, Washington, is the contracting activity (N44255-20-C-5001). (Awarded Feb. 7, 2020) General Atomics Aeronautical Systems Inc., Poway, California, is awarded a $7,826,673 modification (P00005) to a previously-awarded firm-fixed-price contract (N00019-18-C-1063). This modification provides for Group 5 unmanned air system intelligence, surveillance, and reconnaissance services. These services are in support of outside the continental U.S. (OCONUS) Task Force Southwest and U.S. Marine Corps operations utilizing contractor-owned/contractor-operated MQ-9 unmanned air systems. Work will be performed in Yuma, Arizona (35%); Poway, California (15%); and various OCONUS locations (50%), and is expected to be completed in May 2020. Fiscal 2020 operations and maintenance overseas contingency operations (Navy) funds in the amount of $7,826,673 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. ARMY Capital Currency Team, Washington, District of Columbia, was awarded a $100,000,000 firm-fixed-price contract for multi-discipline architectural engineering services. Bids were solicited via the internet with seven received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 5, 2030. U.S. Army Corps of Engineers, Baltimore, Maryland, is the contracting activity (W912DR-20-D-0007). ECS Federal LLC, Fairfax, Virginia, was awarded an $85,422,289 cost-plus-fixed-fee contract for research and development of artificial intelligence algorithms. Bids were solicited via the internet with one received. Work will be performed in Fairfax, Virginia, with an estimated completion date of Jan. 26, 2023. Fiscal 2020 research, development, test and evaluation funds, Army in the amount of $85,422,289 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911QX-20-C-0019). Kentucky Office of Vocational Rehabilitation Division of Blind Services, Frankfort, Kentucky, was awarded a $59,677,871 firm-fixed-price contract for full food services at Fort Knox. Bids were solicited via the internet with five received. Work will be completed at Fort Knox, Kentucky, with an estimated completion date of Feb. 6, 2025. Field Directorate Office Fort Sam Houston, Texas, is the contracting activity (W9124J-20-D-0007). Accura Engineering and Consulting Services Inc.,* Atlanta, Georgia (W91278-20-D-0012); ACT Services LLC,* Columbia, Maryland (W91278-20-D-0013); Health Facility Solutions Co.,* San Antonio, Texas (W91278-20-D-0014); Moca Systems Inc.,* Boston, Massachusetts (W91278-20-D-0015); Parsons Government Services Inc., Washington, District of Columbia (W91278-20-D-0016); Thompson Engineering Inc., Mobile, Alabama (W91278-20-D-0017); and Wood Environment & Infrastructure Solutions Inc., Blue Bell, Pennsylvania (W91278-20-D-0018), will compete for each order of the $49,000,000 firm-fixed-price contract for architect and engineering services to support the U.S. Army Corps of Engineers Construction Management Program. Bids were solicited via the internet with 46 received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 10, 2025. U.S. Army Corps of Engineers, Mobile, Alabama, is the contracting activity. Cape Fox Facilities Services LLC, Manassas, Virginia, was awarded a $22,000,000 firm-fixed-price contract for behavioral health support services. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 9, 2025. U.S. Army Health Contracting Activity, San Antonio, Texas, is the contracting activity (W81K04-20-D-0004). TSAY/Ferguson-Williams,* San Juan Pueblo, New Mexico, was awarded an $8,903,544 cost-plus-award-fee contract for base operations and maintenance services at Fort Stewart and Hunter Army Air Field. Bids were solicited via the internet with one received. Work will be performed at Fort Stewart, Georgia, with an estimated completion date of July 31, 2020. Fiscal 2020 operations and maintenance, Army funds in the amount of $8,903,544 were obligated at the time of the award. Mission and Installation Contracting Command, Fort Stewart, Georgia, is the contracting activity (W9124M20C0003). (Awarded Feb. 8, 2020) AIR FORCE SigmaTech Corp., Colorado Springs, Colorado, has been awarded a hybrid labor hour and firm-fixed-price with cost reimbursement elements task order under General Services Administration One Acquisition Solution for Integrated Services (OASIS) Small Business Pool 5B indefinite-delivery/indefinite-quantity for the Office of the Assistant Secretary of the Air Force for Space Acquisition and Integration (SAF/SP) systems, engineering, and technical assistance (SETA). The base period total award amount is $14,440,691. The total amount for the base period and four one-year periods is $74,386,746. This task order provides SAF/SP technical, acquisition-related, and support advisory and assistance services in support of space activities. This task order shall also be utilized to focus on the following categories: business and staff support, secretariat and fusion, policy and integration, space control, programs and analysis, architectures and space support, and program management. Work will be primarily done in the Washington, District of Columbia, area, specifically the Pentagon and within the National Capitol Region, and is expected to be complete by Feb. 23, 2025. Fiscal 2020 operations and maintenance funds in the amount of $9,271,413 are being obligated at time of award. The Air Force District of Washington, Joint Base Andrews, Maryland, is the contracting activity (FA7014-20-F-0028). Northrop Grumman Systems Corp., Clearfield, Utah, has been awarded a $9,900,000 indefinite-delivery/ indefinite-quantity contract for F-5 aircraft parts. This contract provides F-5 aircraft parts for Foreign Military Sales support. Work will be performed in Clearfield, Utah, and is expected to be complete by Oct. 22, 2023. This award is the result of a sole source acquisition. Fiscal 2020 Foreign Military Sales funds in the amount of $5,700,000 are being obligated at the time of award. The Air Force Life Cycle Management Center, Hill Air Force Base, Utah, is the contracting activity (FA8220-20-D-0001). DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Aerojet Rocketdyne Inc., Huntsville, Alabama, was awarded a $12,131,241 cost-plus-fixed-fee contract for the base period of the Glide Breaker program. Work will be performed in Huntsville, Alabama (46%); Sacramento, California (29%); Orange, Virginia (14%); Healdsburg, California (8%); and Sunnyvale, California (3%), with an expected completion date of February 2021. Fiscal 2019 research, development, test and evaluation funding in the amount of $12,131,241 are being obligated at the time of award. This contract is a competitive acquisition in accordance with the original broad agency announcement, HR001119S0008. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity (HR001120C0030). DEFENSE LOGISTICS AGENCY Aegis Power Systems Inc., Murphy, North Carolina, has been awarded a maximum $7,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the production of the power supply in support of the AN/TSQ-232 family of command post platforms. This was a sole-source acquisition using justification 41 U.S. Code 1901(e), as stated in Federal Acquisition Regulation 13.501. This is a five-year base contract with no option periods. Location of performance is North Carolina, with a Feb. 10, 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 Land and Maritime, Aberdeen Proving Ground, Maryland (SPRBL1-20-D-0024). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2080211/source/GovDelivery/

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