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  • Does major joint military procurement really work in the Baltics?

    October 29, 2019 | International, Aerospace

    Does major joint military procurement really work in the Baltics?

    By: Aaron Mehta WASHINGTON — On paper, the Baltic nations appear to have closely aligned defense modernization needs that make the joint procurement of advanced military equipment a no-brainer. After all, Latvia, Estonia and Lithuania have historically shared national interests, are currently facing a similar threat from Russia and each have relatively small defense budgets. Joint procurement would drive down costs for large defense articles by allowing the smaller Baltic nations to buy in greater numbers. It would also allow the countries to share maintenance responsibilities, which would save money. And it would drive greater interoperability in countering an adversary's simultaneous attack all three nations. But then there's the reality of the situation. “I think there are many misperceptions on Baltic integration,” Janis Garisons, state secretary for the Latvian Ministry of Defence, told Defense News during a September visit to Washington. “I think this is a little bit of a wrong perception that there is a lot of added value in those common procurements.” Garisons, the No. 2 civilian at the ministry, said he is not against joint procurement efforts, but believes such initiatives work best when purchase ammunition, small arms, or chemical, biological, radiological and nuclear defense equipment — purchases already in the works among the European neighbors. But for major defense articles, the legal and logsitical challenges of coordinating a trilateral contract, combined with a lack of major savings, means it might not be worth it. “We do common procurements when it's possible, but I have to say, I haven't seen much savings on those because even if you combine all three numbers, it's not like the U.S. buying together with the U.K. — thousands and thousands. It is still numbers that are very small,” Garisons said. Lithuania's vice minister for defense, Giedrimas Jeglinskas, agrees that joint procurement of major defense articles may never be feasible among the three Baltic nations. “Joint procurement, multinational procurement — I don't think it exists that much in the world,” Jeglinskas told Defense News during a visit to Washington in October. “Most of the programs out there are joint development. But when you talk about something like three-country procurement, it has been really hard for us to achieve.” Like Garisons, Jeglinskas said smaller transactions have proven successful, specifically the joint procurement of mines with Estonia and gas masks with Latvia. But even then, “the syncing of the budgets and the procurement plans for each country [is difficult]. Say we are ready to buy gas masks this year, but the Estonians may buy them two years ahead. And that's just the small things.” Kusti Salm, the director of the Estonian government's Centre for Defence Investment, told Defense News that joint procurement among the Baltic states is challenging given the need to sync up defense budget cycles, noting that “the amounts we procure are small and do not always bring us the economies of scale.” While the idea of joint procurement is popular, there is a “genuine disconnect” between the idea and the reality, according to Chris Skaluba, a former Pentagon official who is now the director of the Atlantic Council's Transatlantic Security Initiative. Skaluba points to two reasons for this: The first is that while the Baltic states are concerned about Russia, both Latvia and Estonia are more directly concerned with the threat of “little green men” — a reference to masked soldiers in green uniforms who led Russia-backed separatists in the beginning of the conflict in Ukraine. The concern steps from the high populations of ethnic Russians in Latvia and Estonia. In response, those two countries are focuses on homeland defense, whereas Lithuania is focused on resisting a direct Russian invasion — an approach that requires a different set of equipment. Secondly, America's famously convoluted security cooperation process makes trilateral procurement from the Western ally tricky. Small purchases of ammunition or night vision goggles are doable, but the more advanced the gear, the higher the costs and the stricter the regulations. Throw in three separate national budget cycles and the process “can be daunting and just not worth the squeeze when you're through with all that work,” Skaluba said. “Do I think all sides could be more determined and find creative ways to do this? I do. I think maybe something that is technically difficult but not super expensive, like unmanned aerial vehicles, would be a good test case,” Skaluba said. “But I'm also sympathetic that because of how regulations work, the congressional requirements, having to work through [the U.S. Department of] State and the Pentagon, any major purchase is difficult. Trying to do that times three is three times as hard.” National priorities The question of maintenance is another issue for joint procurement in Garisons' eyes. The idea of having shared maintenance facilities spread across the area — for example, one tank depot in Lithuania and one helicopter depot in Estonia to service all three Baltic nations — creates vulnerabilities during an invasion, he said. “I would be very cautious assuming that we will be able to freely import, to bring everything, all supplies needed. Our goal is to ensure that all the basic things, like small arms, ammunition, the maintenance of vehicles, the maintenance of major equipment — that can be done locally,” he said. “For operational reasons we can't have shared maintenance because during wartime we will not be able to bring vehicles, for example, to any other state. “It complicates common procurements because it is not so easy to agree on joint procurements, where the maintenance base will be held and other issues. For us, I think of paramount importance to have a maintenance base.” Ultimately, Latvian officials and their regional counterparts are making informed decisions about their respective country's security, Skaluba said. “These are all really serious governments. They really feel a threat. They know precisely how they think this would work in a crisis situation and what they need to have available to them,” he said. “At a strategic level, of course it [joint procurement] makes sense, but if you're a politician or defense planner or minister of defense, your first responsibility is to defend your country. And of course you want to make sure you have resources available to you.” While skeptical of joint procurement efforts, Garisons was supportive of joint education and training across the region, calling Baltic military cooperation “as strong as any you can find.” He noted that the three nations share a high-level military education center, the Baltic Defence College in Tartu, Estonia. Estonia's Salm considers interoperability among the Baltic states critical to successful joint procurement efforts. “Defense in Estonia cannot be separated from defense in Latvia and Lithuania, as we form a single region from the military point of view,” he said. One example of that raised by both Salm and Garisons is the creation of NATO's Multinational Division North, a headquarters operation organized by Latvia, Estonia and Denmark. Garisons called it “the first attempt when we will have joint command structure, which will be able also to feed into the NATO command structure.” The command-and-control aspect of joint operations is vital, he added. A pair of major exercises in Latvia toward the end of the year will serve as test beds for the NATO division, which is expected to reach initial operational capability in early 2020. https://www.defensenews.com/global/europe/2019/10/28/does-major-joint-military-procurement-really-work-in-the-baltics/

  • Huntington Ingalls Industries Awarded $954 Million Intelligence, Surveillance and Reconnaissance Contract by U.S. GSA FEDSIM

    January 24, 2020 | International, Security

    Huntington Ingalls Industries Awarded $954 Million Intelligence, Surveillance and Reconnaissance Contract by U.S. GSA FEDSIM

    Newport News, Va., January 23, 2020 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries (NYSE: HII) announced today that it has been awarded a General Services Administration One Acquisition Solution for Integrated Services (OASIS) task order to provide Persistent Multi-Role Operations (PMRO) support to the U.S. Air Force-Europe (USAFE) by the Federal Systems Integration and Management Center (FEDSIM). This task order will provide Contractor Owned-Contractor Operated (COCO) manned and unmanned airborne intelligence, surveillance and reconnaissance (ISR) in support of Air Force requirements in the European and African theaters of operation. The task order has a base period of one year with four option years and a potential value of $954 million. “Critical readiness of our defense intelligence enterprise demands unique expertise and advanced technology solutions,” said Garry Schwartz, president of Technical Solutions' Mission Driven Innovative Solutions group. “Over the last several years, HII has continued to expand its ISR support to the U.S. Air Force and other components of the Department of Defense. We are looking forward to continuing to advance the implementation of innovative ISR solutions for USAFE and across the DOD.” The Air Force directs global integrated ISR operations from forward-deployed locations worldwide, including locations throughout the six geographic combatant commands. Air Force ISR operations are conducted in multiple domains and across all phases of operations and environments. The timely integration and delivery of ISR information provides joint, defense, national, and coalition partners with actionable intelligence for the commander and warfighter. The objective of this task is to provide persistent, multi-role and cross-domain ISR capabilities that increase indications and warnings, enhance the U.S. security defense posture, enable the freedom of movement, increase partnership capacity and interoperability, and foster global security and stability throughout the European and African areas of responsibility. This is a continuation and expansion of work currently performed by HII, whose purpose is to deliver timely, accurate and relevant information to operational and strategic decision makers. This effort will provide PMRO for multiple DOD components, including Air Forces in Europe and Africa as well as other strategic and operational partners. About Huntington Ingalls Industries Huntington Ingalls Industries is America's largest military shipbuilding company and a provider of professional services to partners in government and industry. For more than a century, HII's Newport News and Ingalls shipbuilding divisions in Virginia and Mississippi have built more ships in more ship classes than any other U.S. naval shipbuilder. HII's Technical Solutions division provides a wide range of professional services through its Fleet Support, Mission Driven Innovative Solutions, Nuclear & Environmental, and Oil & Gas groups. Headquartered in Newport News, Virginia, HII employs more than 42,000 people operating both domestically and internationally. For more information, visit: HII on the web: www.huntingtoningalls.com HII on Facebook: www.facebook.com/HuntingtonIngallsIndustries HII on Twitter: twitter.com/hiindustries Statements in this release, as well as other statements we may make from time to time, other than statements of historical fact, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed in these statements. Factors that may cause such differences include: changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); our ability to estimate our future contract costs and perform our contracts effectively; changes in procurement processes and government regulations and our ability to comply with such requirements; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; natural and environmental disasters and political instability; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures, and strategic acquisitions; adverse economic conditions in the United States and globally; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; and other risk factors discussed in our filings with the U.S. Securities and Exchange Commission. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make. CONTACT INFORMATION Beci Brenton HII Corporate Director of Public Affairs (202) 264-7143 Beci.Brenton@hii-co.com View source version on Huntington Ingalls Industries: https://newsroom.huntingtoningalls.com/releases/huntington-ingalls-industries-awarded-954-million-intelligence-surveillance-and-reconnaissance-contract-by-u-s-gsa-fedsim

  • The Army is looking for a new all-around vehicle that can swim, climb and charge through snow

    August 31, 2018 | International, Land

    The Army is looking for a new all-around vehicle that can swim, climb and charge through snow

    By: Todd South After more than 40 years of service, the robust little all-terrain vehicle that can climb mountains, ford rivers and churn through snow needs replacing. And the Army, Marines and National Guard are asking industry to give them a new ride. Back in June, Army Contracting Command officials put out a Request for Information for industry to share what they think can replace the Small Unit Support Vehicle, a tracked vehicle that's been in service since the mid-1970s. At one point, there were 1,100 of them in the U.S. military inventory. Now, only a few dozen remain, mostly in service in cold weather areas such as U.S. Army Alaska. The new program to replace the SUSV has been dubbed the “Joint All Weather All Terrain Support Vehicle," or JAASV. So far, Army officials have only asked for information, but they are expected to issue a proposal with more detailed requests for requirements and timelines from industry in the coming weeks or months. The upgrade and replacement are important for a variety of reasons, some of which are near-term, such as National Guard disaster response to blizzards, floods and fires, which can't be navigated easily by the current Humvee fleet. Others are for mobility in the Arctic. Leaders are shifting training and resources back to the Arctic as Russia has beefed up its capabilities and manpower in the region in recent years, from new units and commands to upgraded equipment and weaponry. BAE Systems built the original SUSV, or Bv206, and has since built a modernized version called the BvS10 in both armored and unarmored types. The newer model has been fielded to military units in the United Kingdom, Norway, France and the Netherlands. It has seen real-world operations in Afghanistan and the Balkans on NATO missions, according to company officials. Last year, ST Kinetics unveiled its own version of a small, all-terrain tracked vehicle, called the Bronco 3, at DESI, a defense conference in London, England, according to Army Times sister publication Defense News. Full article: https://www.armytimes.com/news/your-army/2018/08/30/the-army-is-looking-for-a-new-all-around-vehicle-that-can-swim-climb-and-charge-through-snow

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