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  October 5, 2018 | International, Land

  Italy stalls on missile program as budget cuts loom

  By: Tom Kington ROME – Italy's new populist government has halted plans for a new missile defense system amid reports it will reduce defense procurements in 2019 to help fund welfare spending and tax cuts. This week, the defense ministry withdrew a request it had sent to parliament for permission to acquire the CAMM-ER missile system, built by European missile house MBDA and due to cost €545 million, or $626 million. The surprise U-turn on the program comes as Rome searches for funds to support a program of cash benefits for the poor and the jobless, pension boosts and tax cuts promised when the government took office in June. “There are real fears for procurement spending, with some predicting that €1 billion will be trimmed from procurements next year,” said an Italian defense-industry source who asked not to be named. Italy's defense procurement spending stood at €4.7 billion ($5.4 billion) in 2017, combining €2.1 billion from defense ministry coffers and €2.6 billion from Italy's Ministry for Economic Development. After inconclusive elections in March, the Five Star and League parties combined to form Italy's first populist government in June and announced their 2019 budget last week. It includes €10 billion for a so-called “citizen's wage," which Reuters reported amounts to a €780-per-month subsidy for the poorest Italians. The generous budget will push Italy's budget deficit up to 2.4 percent, arousing the wrath of European Union officials given the country's €2.4 trillion debt pile. Italian daily Corriere della Sera reported that during budget talks the head of the Five Star party warned Defense Minister Elisabetta Trenta that he would not agree on the launch of the CAMM-ER program this year. The report was denied by the government, but on Oct. 1 the request to parliament for approval of the purchase, which had been submitted on Aug. 10, was withdrawn, leaving it unclear whether it would be resubmitted. The Common Anti-air Modular Missile – Extended Range, to give it its full name, is a surface-to-air, short-and medium-range missile defense system. It is a variant of a similar weapon sold by manufacturer MBDA to the UK. Another sign of uncertainty hanging over Italy's defense spending is the absence so far this year of a three-year budget plan. Usually, in the spring, Italy's defense ministry publishes details of the current year's budget, with amounts listed per program, as well as budget predictions for the next two years. That document has yet to be published this year, suggesting a delay in calculating what funds can be made available in the coming years. The total government budget is now being nailed down for 2019, which will contain the top-line defense spending for next year. As such, next year's defense allocation may be discussed in parliament as early as next week. Meanwhile, the government has given conflicting signals about its commitments to the F-35 program, with defense minister Trenta suggesting Italy would stick to its order of 90 aircraft, before hinting the order would be cut. In a recent blog post, deputy prime minister Luigi Di Maio listed the F-35 as one of the projects the former Italian government had wasted money on. The new government so far has not formally telegraphed its interest in the UK's new plan for a fighter program, dubbed Tempest, despite the role to be played in that effort by Italy's Leonardo. The company operates facilities in the UK. However, last week, junior defense minister Angelo Tofalo said Italy “needed to enter the program immediately.” On Wednesday he told Defense News it was important that Italy took a leading role in international programs it joined. “The approach taken in the past has not allowed our country to acquire the know-how required to develop the most advanced technology autonomously. That is what happened, for example, on the F-35,” he said. https://www.defensenews.com/global/europe/2018/10/04/italy-stalls-on-missile-program-as-budget-cuts-loom

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  June 25, 2019 | International, Naval

  Warship selected by Canada won’t be in U.S. competition – Americans accepting only proven designs

  DAVID PUGLIESE The US Navy is moving ahead with its frigate program but the ship design selected by Canada, the United Kingdom and Australia won't be considered as the Americans are only considering proven vessels. Because the U.S. FFG(X) future frigate competition will only accept proven, at-sea designs, BAE Systems of the United Kingdom has decided not to enter its Type 26 Global Combat Ship in the competition, the U.S. Naval Institute's publication, USNI News, reports. The Canadian government plans to buy 15 Type 26 warships in a project now estimated by the Parliamentary Budget Officer to cost $70 billion. The project, known as Canadian Surface Combatant, is the largest single expenditure in Canadian government history. The Liberal government announced in February that it had entered into a contract with Irving Shipbuilding to acquire new warships based on the Type 26 design being built in the United Kingdom. With Canada ordering 15 of the warships, the Royal Canadian Navy will be the number one user of the Type 26 in the world. The United Kingdom had planned to buy 13 of the ships for its Royal Navy but cut that down to eight. Australia plans to buy nine of the vessels designed by BAE. But the Type 26 design is unproven. Construction of the first ship for the Royal Navy began in the summer of 2017 but that vessel is not expected to be accepted into service until 2025. Canada hopes to begin construction of its first Type 26 in the early 2020s. Alan Baribeau, a spokesman for U.S. Naval Sea Systems Command, told USNI News, the U.S. Navy requires a proven, in-the-water design for its future frigate program. “To promote and provide for full and open competition, the Navy will consider any hull form — foreign and domestic — that meets the requirements, will be built in a U.S. shipyard and has a parent design that has been through production and demonstrated (full scale) at sea,” Baribeau told USNI News. The entry of the BAE Type 26 warship in the Canadian competition was controversial from the start and sparked complaints the procurement process was skewed to favour that vessel. Previously the Liberal government had said only mature existing designs or designs of ships already in service with other navies would be accepted, on the grounds they could be built faster and would be less risky. Unproven designs can face challenges as problems are found once the vessel is in the water and operating. But the requirement for a mature design was changed and the government and Irving accepted the BAE design, though at the time it existed only on the drawing board. Company claims about what the Type 26 ship can do, including how fast it can go, are based on simulations or projections. The two other bidders in the Canadian program had ships actually in service with other navies so their capabilities were known. The Canadian Surface Combatant program is being run by Irving Shipbuilding to replace the navy's fleet of Halifax-class frigates and the Iroquois-class destroyers the navy previously operated. The updated estimate on the surface combatant program, compiled by the Parliamentary Budget Office and released June 21, covers the cost of project development, production of the ships, two years of spare parts and ammunition, training, government program management, upgrades to existing facilities, and applicable taxes. The previous Conservative government originally estimated the cost of the ships to be around $26 billion. The Department of National Defence now states that its estimate is between $56 billion and $60 billion. BAE Systems told USNI News that it would not be submitting any proposals for the U.S. FFG(X) program unless the U.S. Navy dumps its requirements for a proven hull design. The U.S. does not have any intention of changing its requirements. Four companies are expected to submit bids for the U.S. program– Austal USA, Fincantieri Marine, General Dynamics Bath Iron Works and Ingalls Shipbuilding – with deadlines of August 22 for technical proposals and September 26 for pricing proposals, the USNI News reported. The Canadian Surface Combatant program is currently in the development phase. The government projects the acquisition phase to begin in the early 2020s with deliveries to begin in the mid-2020s. The delivery of the 15th ship, slated for the late 2040s, will mark the end of that project. https://ottawacitizen.com/news/national/defence-watch/warship-selected-by-canada-wont-be-in-u-s-competition-americans-accepting-only-proven-designs

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  August 11, 2020 | International, Aerospace

  After a hard-fought competition, ULA and SpaceX to remain military’s rocket launch providers

  By: Valerie Insinna WASHINGTON — United Launch Alliance and SpaceX have won the Space Force's next-generation rocket contract, locking the two companies in as the Defense Department's launch providers of choice for the foreseeable future. ULA — a joint venture of Lockheed Martin and Boeing — was awarded $337 million, while SpaceX will be getting $316 million for phase two of the National Security Space Launch (NSSL) program, the Pentagon announced Aug. 7. They beat out Blue Origin and Northrop Grumman. Phase 2 of the NSSL program is the U.S. military's vehicle for ordering launch services from fiscal year 2022 to 2027. ULA is slated to get 60 percent of the manifest, with SpaceX getting the remainder. “We don't think this is the last round of innovation that we're going to see,” Will Roper, the Air Force's acquisition executive, told reporters during an Aug. 7 roundtable. “Although we're excited for the next five years, we're looking ahead to ‘Phase 3' five years from now and wondering what new leap-ahead, lower-cost technologies might be on the forefront to make assured access to space not just assured, but cheaper.” The award pays for the first three missions in 2022, which include two ULA launches and one for SpaceX. All are classified, Roper said. There is no ceiling on the number of launches that the Pentagon can order in Phase 2, but Roper expects about 32 missions. Funding for those missions will be distributed in future task orders. The NSSL Phase 2 award moves the U.S. military one step closer to eliminating its dependence on the Russian RD-180 engine, which is used in ULA's Atlas V rocket. The Defense Department has until 2022 to stop RD-180 procurement, and Roper said he was confident was on “a low risk path” to ensure it will meet that deadline. For the Phase 2 SpaceX offered the Falcon 9 and Falcon Heavy, which are both certified and in use. ULA proposed a new rocket, the Vulcan Centaur, which is under development and expected to make its maiden flight in 2021. “Vulcan Centaur is the right choice for critical national security space missions and was purpose built to meet all of the requirements of our nation's space launch needs,” said Tory Bruno, ULA's president and CEO, said in a statement. Blue Origin and Northrop Grumman were also in the process of creating new launch systems under a 2018 agreement with the Space and Missile Systems Center. That organization will now work with those companies on how to best halt the government's involvement in that development, Roper said. “We will tie off the [launch service agreement] contracts as soon as we can, at a point that makes sense,” he said. “We want to make sure that work that's in flux, that we're able to document what the vendors have done. Where the government has rights to the data and the work, we want to make sure we retain them.” Unless the companies protest the contract award, the next opportunity for Northrop, Blue Origin or other challengers to compete for national security launches is NSSL Phase 3, but the department's approach and timeline for that effort is still being determined. “If funding were available for a Phase 3 launch service agreement, there's no prohibition on how early we could start Phase 3,” said Roper, who added that studies have shown “some strategic benefits for doing that sooner rather than later.” https://www.defensenews.com/space/2020/08/07/after-a-hard-fought-competition-ula-and-spacex-to-remain-militarys-rocket-launch-providers/