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German budget committee clears over 6 bln euros of defence purchases, say sources

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  • US Air Force nuclear, space programs take hit in border wall reprogramming

    May 14, 2019 | International, Aerospace

    US Air Force nuclear, space programs take hit in border wall reprogramming

    By: Joe Gould , Aaron Mehta , and Valerie Insinna Correction: A previous version of this story contained an erroneous amount of reprogrammed money. The story has been updated to show the Pentagon reprogrammed $1.5 billion in FY19 funds. WASHINGTON — In the wake of the Pentagon reprogramming $1.5 billion in fiscal 2019 funds to support President Donald Trump's border wall with Mexico, only the U.S. Air Force appears to be losing money appropriated for equipment updates. The funding largely comes from personnel accounts in the Air Force, Navy and Army. But the Air Force is the only service to lose funding for hardware, including nuclear and conventional weapons, surveillance aircraft updates, and space programs. Overall, the Pentagon reprogrammed $818.465 million from FY19 defense appropriations, as well as $681.535 million from FY19 overseas contingency operations accounts, or OCO, to reach that $1.5 billion total. Lawmakers expressed concern that the use of military resources and manpower on the southern border will damage military readiness. However, acting Defense Secretary Patrick Shanahan said last week that ongoing deployments to support the Defense Department aren't doing so. “We've seen no degradation to readiness,” he told Senate appropriators May 8 at a defense budget hearing. “In fact, in some cases, it's enhanced our readiness because the troops get to perform certain functions.” Congressional Democrats and some Republicans have objected to the administration's use of this mechanism for funding the president's border wall, arguing it bypasses Congress' constitutional power of the purse. For the second time in recent weeks, the Pentagon ignored decades of precedent and carried out the transfer of funds without first consulting with the Senate Appropriations Committee. Sen. Patrick Leahy, the Senate Appropriations Committee's top Democrat, led a letter to Shanahan on May 10 to object to the latest instance, saying it harms hurricane cleanup at Tyndall Air Force Base, Florida. “We are dismayed that the Department has chosen to prioritize a political campaign promise over the disaster relief needs of our service members, given the finite reprogramming authority available," the lawmakers wrote. They noted that Shanahan's decision to notify Congress of the reprogramming came a day after he testified before the subpanel that oversees defense spending, and they wrote that they welcomed his views on “how you intend to repair the damaged relationship between the defense oversight committees and the [Defense] Department.” The letter was also signed by the Senate Armed Services Committee's top Democrat, Sen. Jack Reed, as well as Democratic Sens. Dick Durbin, Brian Schatz, Tom Udall , Patty Murray, Chris Murphy, Tammy Baldwin, Dianne Feinstein and Jon Tester. The reprogramming could be a topic at Shanahan's future confirmation hearing for the full job of defense secretary. A date for that hearing has not been set. Why the Air Force? About half of the non-OCO $818 million sum the Defense Department wants to redirect to the border comes from Air Force accounts, with space and missile programs taking the biggest hit. In total, the Pentagon expects the service to shear $402 million off its FY19 budget. About $210 million would be cut from Air Force space programs, specifically the Evolved Expandable Launch Vehicle program, which funds the use of rockets that send satellites and other capabilities into space. According to the reprogramming document, one rocket launch has been canceled due to the “Space Test Program (STP)-4 satellite provider termination of the Robotic Servicing of Geosynchronous Satellites (RSGS) spacecraft,” which is no longer necessary under the National Security Strategy. The Air Force's program for modernizing its E-3 Sentry early warning aircraft — more commonly called AWACS — also could lose funding that it no longer needs in FY19. The program, "Diminishing Manufacturing Sources Replacement of Avionics for Global Operations and Navigation,” or DRAGON, updates the E-3's avionics and brings it into compliance with future air traffic control requirements. But it is moving too slowly to use all of the funds it was appropriated in FY19, so the administration aims to have $57 million diverted for border protection. DRAGON has been delayed for two reasons, according to the reprogramming request. First, “aircraft have been available for programmed depot maintenance” at a slower-than-planned rate, dragging out the modification schedule. Additionally, DRAGON integration can only occur after AWACS are upgraded to the Block 40/45 configuration, and not all aircraft have gone through that process. The Air Force sees AWACS as a key part of its initial version of the Advanced Battle Management System, a family of systems that will provide ground surveillance across the different military services. Instead of retiring seven E-3s in FY18, Gen. Mike Holmes, head of Air Combat Command, said those planes could be upgraded with new sensors and communications gear. However, DRAGON isn't the only modernization effort for the Sentry that is moving slower than expected. In November, Bloomberg reported that the service terminated a contract with Boeing to upgrade the AWAC's characteristic disc-shaped radar due to repeated delays. Other Air Force programs that will take a hit include a planned upgrade to the Minuteman III intercontinental ballistic missile and the air-launched cruise missile programs. A number of top defense officials previously said nuclear modernization is the top priority for the Pentagon, including Ellen Lord, the department's acquisition head, who on May 1 told Congress: “We have weapons that are decades over what was supposed to be their useful life. And we are out of time. We need to continue on the path we're on, or we are going to fall behind and not have the nuclear deterrence that we enjoy today.” The document reprograms $24.3 million, of the $124.5 million appropriated in FY19, from the Minuteman III Launch Control Block Upgrade program; the document claims funds are available due to a “slip in the production schedule for FY 2020.” Meanwhile, $29.6 million — more than half of the $47.6 million appropriated for the air-launched cruise missile programs in FY19 — will be reprogrammed. The explanation for that change: “Funds are available due to contract savings from reduced guided missile flight controller modification requirements; and due to lack of executable requirements for Support Equipment and Low Cost Mods in FY 2019.” The reprogramming of funds for the Hellfire missile is also notable, as the Pentagon has identified a lack of munitions stockpiles as a major issue to address in its budget request. As an example, the FY20 budget called for the maximum rate of production possible on Hellfire: $730.8 million for 9,000 of the weapons. The document states that funds are “available due to contract savings from all variants that provide precision kill capabilities. Savings are attributed to negotiated lower unit costs per missile system.” https://www.defensenews.com/smr/federal-budget/2019/05/13/us-air-force-nuclear-space-programs-take-hit-in-border-wall-reprogramming/

  • Boeing Wins $63M Navy Deal for F/A & E/A-18 Aircraft Support

    October 4, 2018 | International, Aerospace

    Boeing Wins $63M Navy Deal for F/A & E/A-18 Aircraft Support

    By Zacks Equity Research, Zacks.com The Boeing Company BA recently won a $62.7-million contract for providing inspections, Inner Wing Panel (IWP) modifications, and repairs for the F/A-18 E/F and EA-18G aircraft. Such designated efforts are expected to restore aircraft and IWP service life projections to new design specifications. Work related to the deal will be majorly carried out in Jacksonville, FL; St. Louis, MI; and Lemoore, CA. The entire task related to the deal is expected to get completed in September 2019. The deal was awarded by the Naval Air Systems Command, Patuxent River, Maryland. A Brief Note on F/A-18 and E/A-18 Boeing's F/A-18 Block III Super Hornet is a twin-engine, supersonic, all weather multirole fighter jet. The U.S. Navy's tactical and air superiority aircraft is capable of performing virtually every mission in the tactical spectrum, including air superiority, day/night strike with precision-guided weapons, fighter escort, close air support, suppression of enemy air defenses, maritime strike, reconnaissance, forward air control and tanker missions. Whereas, the EA-18G Growler is the most advanced airborne electronic attack (AEA) platform, which operates from either an aircraft carrier or from land-bases. What's Favoring Boeing? Boeing, being one of the major players in the defense business, stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog. Furthermore, the company's expertise lies in programs related to wide variety of aircraft components, repairs and modification works. Considering Boeing's combat-proven aerospace programs and associated services along with the rapidly growing need for military aircraft in light of the enhancing geopolitical uncertainties worldwide, the company witnesses a solid inflow of orders from Pentagon. These contract wins, in turn, boost top-line growth for the company's defense business segment. Evidently, in second-quarter 2018, revenues at the Boeing Defense, Space & Security (BDS) segment, which manufactures military jets like F/A-18, EA-18 Growler and its related components, increased 9% year over year to $5.59 billion. In line with this, we may expect the latest contract win to help this unit deliver similar top-line performance, in coming quarters. Meanwhile, toward the end of June 2018, the U.S. Senate approved the fiscal 2019 defense budget that provisions for major war fighting investments worth $21.7 billion for aircraft. Boeing, being the largest aircraft manufacturer in the United States, will surely be a significant beneficiary from the budget, which further includes an investment plan of $2 billion for procuring 24 F/A-18E/F aircraft. Such inclusions reflect solid growth prospects for the BDS segment, which, in turn, are likely to boost Boeing's profit margin. Price Movement Boeing's stock has gained 53.4% in the past 12 months compared with the industry 's growth of 25.1%. The outperformance was primarily led by the robust worldwide demand for its commercial aircraft and military jets. Full article: https://www.nasdaq.com/article/boeing-wins-63m-navy-deal-for-fa-ea-18-aircraft-support-cm1032450

  • Cascade Aerospace Awarded Contract to Modernize Mexican Air Force C-130 Hercules Aircraft

    January 11, 2018 | International, Aerospace

    Cascade Aerospace Awarded Contract to Modernize Mexican Air Force C-130 Hercules Aircraft

    Abbotsford, BC – Cascade Aerospace Inc. (Cascade) is pleased to announce that it has been awarded a contract for the avionics modernization of one Fuerza Aérea Mexicana (FAM) L-100 (C-130) Hercules aircraft. This contract follows on the recent delivery of two modernized C-130K Hercules aircraft delivered to the FAM and fitted with advanced digital avionics from Rockwell Collins. This program will be contracted through the Canadian Commercial Corporation (CCC) under the auspices of a Memorandum of Understanding (MOU) between the Canadian and Mexican governments. ”Completing the C-130 fleet modernization represents a significant milestone for Cascade and affirms our excellent relationship with the Mexican Air Force as a support provider of choice since 2013,” said Cascade's EVP & COO, Kevin Lemke. “The upgrade of this aircraft will establish a common cockpit configuration for the entire FAM C-130 fleet thereby enhancing fleet capability, as well as providing efficiencies in maintenance, training, and operational availability.” This modernization program includes the installation and integration of an advanced Rockwell Collins Flight2 TM digital avionics suite. In addition, Cascade will provide operational and technical training for Mexican Air Force personnel at the company's facility and headquarters in Abbotsford, British Columbia. About Cascade Aerospace Cascade Aerospace, an operating unit of IMP Aerospace & Defence, is a leading Canadian specialty aerospace contractor that provides long-term integrated aircraft fleet support and program management, aircraft maintenance, modification, engineering & integrated logistics support to domestic and international military, government, and commercial customers. About Canadian Commercial Corporation (CCC) Established in 1946, the Canadian Commercial Corporation (CCC) is a Federal Crown corporation of the Government of Canada that acts as Canada's international contracting and procurement agency. CCC reports to Parliament through the Minister of International Trade. CCC acts as the prime contractor for foreign governments who wish to contract with Canadian companies and expertise through a government-to-government channel. CCC's strong relationships with international buyers and access to Canada's innovative industrial base, puts CCC in a unique position to facilitate and promote international trade. Media Contacts: Kim Tamminga Cascade Aerospace Direct: +604-557-2646 ktamminga@cascadeaerospace.com www.cascadeaerospace.com https://www.impgroup.com/newsitem.aspx?mid=3D58A7E8-8A48-4F41-B2A8-39AAFF70ABF6

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