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July 15, 2019 | International, Land

U.S. Army Awards BAE Systems $45 Million Contract for Extended Range Cannon Artillery Prototype

STERLING HEIGHTS, Mich.--(BUSINESS WIRE)--The U.S. Army has awarded BAE Systems a $45 million contract for the Extended Range Cannon Artillery (ERCA) Increment 1 prototype with the purpose of increasing the range and rate of fire on current and future M109A7 self-propelled howitzers. The development of ERCA is in collaboration with the Army's Combat Capabilities Development Command (CCDC) Armaments Center.

This prototype phase will address capability gaps in the Army's indirect fire systems and improve the rate and range of fire with the development of power distribution software and hardware integration solutions. ERCA will be integrated onto the M109A7 and will require the M109A7's current 39-caliber turret to be replaced with a 58-caliber, 30-foot long gun barrel with the objective of creating firepower double the current range.

“ERCA is a significant technological step forward for the Army's artillery portfolio,” said Scott Davis, vice president or programs, BAE Systems' Combat Vehicles business. “We were selected based on our years of experience in the development of self-propelled howitzer systems. Long-range precision fire is a top priority for the Army, and we are pleased to be a partner in efforts to equip soldiers with the latest technology.”

The development program aims to provide the warfighter with extended range while maintaining the weight found in current systems to minimize performance impacts on the chassis. Under separate contracts, BAE Systems is also developing precision guidance kits with anti-jamming capabilities (PGK-AJ) that can operate in the challenging ERCA firing environment. PGK-AJ is compatible with existing and new long-range rounds for multiple firing platforms, including the M109 self-propelled howitzer.

BAE Systems is currently producing the M109A7 configuration for the Army in the low-rate initial production phase.

Development work on ERCA Self Propelled Howitzer will take place at the Army's Picatinny Arsenal and BAE Systems' facilities in York, Pennsylvania; Sterling Heights, Michigan and Minneapolis, Minnesota.

https://www.businesswire.com/news/home/20190715005684/en

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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/

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  • Reform efforts in South Korea create ecosystem for defense industry growth

    August 17, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Reform efforts in South Korea create ecosystem for defense industry growth

    By: Mike Yeo MELBOURNE, Australia — South Korea has over the past decade become a defense industry powerhouse in its own right, and it's seeking to widen its reach, with progress in international markets in recent years marking the maturity of its defense articles. This year's Defense News Top 100 list of the biggest defense companies in the world features four South Korean businesses. They are Hanwha (ranked 32rd), Korea Aerospace Industries (55th), LIG Nex1 (68th) and Hyundai Rotem Company (95th), all of which made last year's list. Continued reform The strong performance of South Korean defense companies comes in the wake of a series of reforms over the past decade, with the latest designed to consolidate industrial gains and create momentum for growth. The defense industry reforms are part of President Moon Jae-in's Defense Reform 2.0 program announced in 2018 — a complement to efforts seeking to create a slimmer, yet more efficient South Korean military that is less reliant on foreign defense technology. The push for further self-reliance is most prominent in Korea Aerospace Industries' KF-X program. KAI is developing a next-generation fighter for the South Korean Air Force. Although an American GE F414 turbofan will power the aircraft, its avionics will primarily be indigenous. These include the active electronically scanned array radar under development by Hanwha and the country's Agency for Defense Development, with support and some components supplied by Israel's Elbit Systems. Defense Reform 2.0 also puts emphasis on defense industry investment, and it comes as little surprise that the domstic market still takes up the biggest share of the pie where sales are concerned, backed up by the steady growth in defense spending: South Korea's defense budget grew 20 percent from 2009 to 2017, reaching $43 billion. Export success The reform program also places an increased priority on defense exports. The country is already successful in this area, with research by the Stockholm International Peace Research Institute think tank showing the country was the 11th biggest arms supplier in the world in 2017, with sales totaling $5.5 billion. In a further indication of how much South Korea's industry has grown, SIPRI also noted in a 2018 report that the country's defense exports grew 94 percent in the 10 years prior, a growth figure only bettered by Turkey for the same period. This growth has been underpinned by two of the highest-profile South Korean defense exports in the past decade: the KAI T-50 Golden Eagle family of trainer and light combat aircraft, and the Hanwha K9 Thunder self-propelled howitzer. The T-50 was earmarked by the Air Force as its mainstay advanced trainer and light combat aircraft. Despite losing a number of trainer competitions, including in Poland, Singapore and the United States, the Golden Eagle has since scored a number of notable contracts for export. Compared to its rivals in the trainer market, such as the Leonardo M-346 and the Boeing T-7, the main draw of the T-50 family is its combat capability in the form of the TA-50 and FA-50 equipped with sophisticated combat capabilities in the form of radars and precision weapons employment capability. This makes the aircraft attractive to nations unable to afford a high-end trainer with a light attack capability, and the list of the type's customers bears this out, with Indonesia, Iraq, the Philippines and Thailand operating the type in their respective air forces. The Philippine Air Force used its FA-50PH fleet to attack Islamic State militants in the southern part of the country in 2018. Meanwhile, Hanwha's K9 Thunder has carved a niche for itself in the global market for self-propelled howitzers. The 52-caliber, 155mm system has been selected by a number of NATO nations, beating out the similar Panzerhaubitze 2000 by Germany's Rheinmetall in Estonia, Finland and Norway. Turkey is building the K9 under license as the T-155 Firtina. The system has also been selected for license production by India and Poland, and had previously been selected by Australia in the early part of the 2010s only to be canceled following budget issues caused by the global financial crisis. Hanwha is also one of two companies left in the running to supply the Australian Army with a new infantry fighting vehicle. The AS21 Redback, which is based on the K21 vehicle operated by the South Korean Army, is to take part in an evaluation program against the Rheinmetall KF41 Lynx to supply 450 vehicles to replace M113 armored personnel carriers. The evaluation will see three of each vehicle delivered to Australia for testing, with the first two Redbacks due to reach Australia at the end of August, having left South Korea by ship late last month. Post-pandemic support Like much the rest of the world, the COVID-19 pandemic has hit South Korea hard, though the worst appears to be over for the country. The local defense industry was forced to adjust financially and operationally, and it remains unclear how revenue will be hit by the events of 2020. The pandemic has claimed at least one sale for the South Korean defense industry, with Argentina, which had appeared set to be the next customer for the T-50 family, deciding in April to put off the acquisition indefinitely. The South American country is yet to sign a contract, despite choosing the aircraft for purchase in July 2019. However, the South Korean government is not waiting for foreign action. Defense Minister Jeong Kyeong-doo has unveiled plans for the country to spend more on locally produced defense articles, partly as a move to help curtail the effects of the pandemic. Jeong said during a mid-June meeting with industry CEOs that his ministry plans to adjust spending plans to continue its drive to spend more on indigenous products, and move delivery timelines to reflect the reality of schedule delays while also waiving penalties for late payments. He also plans to expand an existing strategy aimed at establishing “defense industry innovation clusters”; this move adds to the first one established in April with an initial government investment. As a result, more funding will be made available to industry and research institutes, and will be used to support regional collaboration in defense-related research and development as well as manufacturing. https://www.defensenews.com/top-100/2020/08/17/reform-efforts-in-south-korea-create-ecosystem-for-defense-industry-growth

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