Israeli defense giant picks five startups to develop future tech

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  February 8, 2021 | International, Aerospace, Naval, Land, C4ISR, Security

  German Defence Ministry punts key US defense-cooperation projects to the next government

  By: Sebastian Sprenger COLOGNE, Germany — The German Defence Ministry will leave planned air defense investments and other high-profile programs involving U.S. vendors unresolved in the final months of the Merkel government, officials have told lawmakers. A Feb. 3 list of “important” but unfunded programs, as officials wrote, includes several trans-Atlantic defense efforts that have been simmering for some time. As a result, American contractor behemoths Lockheed Martin and Boeing are left to wait until a new government re-litigates Germany's defense acquisition posture sometime after the Sept. 26 election. Lockheed Martin, along with MBDA Deutschland, has been gunning for a contract on the TLVS missile defense program following more than a year of negotiations and several years of German-American co-development. The program's prospects turned dimmer last fall, as new requirements drove up costs. Unsurprisingly, TLVS now officially appears on the to-do list for the next chancellor. Notably, a project aimed at defending against short-range aerial threats, like drones or mortar fire, is also lacking a budget, defense officials wrote to lawmakers. Defence Minister Annegret Kramp-Karrenbauer late last year reframed Germany's air defense requirements as needing greater focus on drone threats, as evidenced by the Nagorno-Karabakh conflict. She said a wholesale evaluation of the entire weapons portfolio would determine the way ahead, including what systems the Bundeswehr needs to counter threats of different sizes from various distances. Whatever happened with the review, it appears it did not spur an appetite to start something new soon. That leaves Germany's fleet of Patriot systems, along with a limited order of counter-drone systems made by Kongsberg and Hensoldt aimed at fulfilling Germany's commitment to NATO for 2023, as the baseline equipment for the time being. Lockheed also must wait for what happens next in the Bundeswehr's heavy transport helicopter program, which is meant to replace the fleet of CH-53G models. The Defence Ministry effectively halted the acquisition process last fall after Lockheed and Boeing went over budget with their custom offers of the CH-53K King Stallion and the CH-47 Chinook, respectively. German defense officials recently requested information from the U.S. Defense Security Cooperation Agency about buying more standard, and presumably cheaper, versions of the desired aircraft instead. In response, Lockheed launched a formal protest, which is now on the docket of the Federal Cartel Office, as newspaper Die Welt first reported. Company officials said they want to get a ruling of whether Berlin walking away from the purchase altogether was in line with fair-competition rules. German acquisition laws make it difficult for companies to protest when the government chooses not to award any contract at the end of a competition, said Christian Scherer, a public procurement expert with the law firm CMS Germany in Cologne. “Generally speaking, you can't force the government to buy anything,” he said. “But bidders might have compensation claims.” Judging offers as economically unfeasible, for example, could qualify as a valid reason for the government to withdraw, Scherer told Defense News. At the same time, there is a legal path if companies suspect abusive implementation of the rules, especially if the government's requirements remain the same, he added. Those rules exist to protect offerers against favoritism and other forms of manipulation. “You can't go ahead and compete the same thing with the intention to award the contract to your preferred bidder.” Finally, Germany's long-term campaign of replacing its fleet of Tornado combat aircraft will remain untouched during the final months of the Merkel era, according to the Defence Ministry. Defense officials last spring settled on a mixed fleet of mostly Eurofighters plus a smaller number of Boeing-made Super Hornets for electronic warfare and nuclear missions. The decision has morphed into something more akin to a mere recommendation that would require years to play out, leading Eurofighter maker Airbus to hold out hope that U.S. manufacturers can be entirely kept out of the business when all is said and done. Tobias Lindner, a Green Party member of the Budget and Appropriations committees in the Bundestag, said the list of unfunded programs is “almost more interesting” than the acquisitions considered doable by the time the Bundestag session ends in late June. With so many big-ticket programs in limbo (15 overall), Kramp-Karrenbauer could move to set priorities and cut needless projects. “Unrealistic announcements and promises weaken trust within the armed forces and with our allies,” Lindner said. https://www.defensenews.com/global/europe/2021/02/05/german-defense-ministry-punts-key-us-defense-cooperation-projects-to-the-next-government/

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  September 22, 2021 | International, Aerospace

  Top Air Force officer's plan to 'accelerate change or lose' is picking up speed, one year in

  '€œWe could all use more manpower, more money and more time. But leaders cannot wait for perfect conditions to act or make a decision," Brown said.

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  December 17, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

  Modernization top priority in FY20 budget, Pentagon’s No. 2 official says

  By: Valerie Insinna WASHINGTON — As the Trump administration and Congress deliberate the Defense Department's top-line budget for fiscal 2020, safeguarding the military's weapons programs and funding technology development is taking precedence over growing the force, the Pentagon's No. 2 official said Thursday. “At the end of the day, the national defense strategy puts a priority on modernization,” Deputy Defense Secretary Patrick Shanahan told reporters Dec. 13. “The trick then becomes, when you talk about force structure, how much risk do you take given the world's environment?” Shanahan's comments come at a time of back-and-forth between President Donald Trump, Defense Department leadership and Congress about the size of the FY20 defense budget. Pentagon budget makers had been planning for a $733 billion budget request — a modest increase over the $716 billion budget for FY19 — when Trump announced in October that the Defense Department's budget would instead be cut to $700 billion. The move surprised many, as Trump had frequently touted his administration's efforts to grow the size of the military and invest in new defense technology. The announcement raised questions about what the Pentagon would have to cut in order to meet the lower number, but it appears that those concerns may have been premature. Earlier this week, Politico and other outlets reported that congressional Republicans and Defense Secretary Jim Mattis had convinced Trump to raise the top line to $750 billion. Shanahan on Thursday downplayed the reports, saying that a final top line had yet to be determined. "We're looking at numbers above $733 [billion], and as you know, we looked at numbers below $733 [billion]. I think everybody recognizes that this is a discussion that will go on in terms of what is the right number. The process we have is very robust,” he said. No matter what the top line ends up looking like, the goal will be “anchor[ing] line items to the National Defense Strategy. That's the rigor we put in place,” he added. With a top line above $733 billion, it's possible the Defense Department will be able to grow both its modernization accounts as well as funding for improving readiness and increasing force structure. But Shanahan, who spoke at a National Defense Industrial Association event on hypersonics on Thursday, tried to quell defense contractors' concerns that funding for hypersonic technologies, and science and technology development in general, could suffer under a budget that rings in at $733 billion or below. Asked by one Lockheed Martin employee whether funding for hypersonics programs would remain reliable in light of budgetary fluctuations, Shanahan said his level of confidence was high it would. “We've prioritized amortization,” he said. https://www.defensenews.com/congress/budget/2018/12/14/modernization-top-priority-in-fy20-budget-pentagons-no-2-official-says/