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August 14, 2018 | International, Naval

US Navy’s focus on rapid acquisition is opening up opportunities for Europe

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WASHINGTON — The U.S. Navy intends to get much bigger, and that has meant new openings for European companies in the U.S. defense market.

The Navy's new over-the-horizon missile destined for the littoral combat ship and the future frigate was recently awarded to the Norwegian firm Kongsberg, in partnership with U.S. company Raytheon, for its Naval Strike Missile.

The future frigate program itself has awarded contracts to Spain's Navantia and Italy's Fincantieri for design work before the Navy selects a design later this year, meaning the service's next surface combatant may be a European design. And for the Navy's future training helicopter, both Franco-Dutch company Airbus and Italian firm Leonardo are top competitors for that program.

Analysts say the Navy's recent surge in interest has been spurred by a confluence of circumstances that could mean even more opportunities for foreign companies looking to break into the U.S. market.

Increased defense budgets are one reason the European companies have been seeing more business from the Navy and other American military branches. But a shift in the way the Defense Department tries to fill capabilities gaps has made the space more competitive for overseas firms, said Dan Gouré, a defense analyst with the Lexington Institute think tank.

As the Navy and other services have shifted toward great power competition, it has found a number of capabilities that were not hugely important in a unipolar world have again become requirements with the reemergence of Russia and the rise of China as security threats. One such area is the small surface combatant, or FFG(X) program, which would be needed to escort supply convoys and work as a survivable sensor node in a larger surface combatant network.

“With the frigate, for example, we hadn't built one of those in 40 years, but the Europeans have been building them for decades,” Gouré noted. “And if we needed a diesel-electric sub, they'd of course be the first in line.”

This emphasis on speed of acquisition has also helped because the Navy and the rest of the Department of Defense are reluctant to get tied down by a yearslong, inevitably over-budget development process unless necessary, Gouré said.

“The trend has been toward [other transaction authority] contracts, and that has made the European companies credible competitors,” he said.

Another factor is that the Navy has been more willing to make trades on capabilities, said Bryan Clark, an analyst with the Center for Strategic and Budgetary Assessments.

“I think what's new is that the Navy is openly seeking foreign proposals for some of these major new programs,” Clark said. “Foreign companies have always been able to submit proposals in response to RFPs, but usually they don't offer the high-end capability the U.S. is usually seeking.

“The big change is that the Navy is willing to get a less-sophisticated capability in to get a design that is more mature.”

In the case of the Navy's trainer helicopter competition, past success with European companies inside the DoD could be a driving factor in Airbus' and Leonardo's competitive bids.

Airbus' North American division has been successful with the U.S. Army's Lakota program, built by Airbus Helicopters in Columbus, Mississippi, which is where the company would build its H135 helicopter if selected for the program. The Army has been happy with Lakota, so much so that it has been pushing to buy more of the airframes despite legal battles over the contracts.

But the success of Airbus Helicopters with the Army is possible for much the same reason that, for example, Australian-owned Austal USA has been successful building both the trimaran version of the littoral combat ship and the expeditionary fast transport: a major manufacturing infrastructure investment in the United States.

And that kind of cash outlay for a program can scare away European competitors. Getting around “Buy American” provisions would literally take an act of Congress. Despite having already developed, tested and fielded the capability the Navy wants, Kongsberg had to team with American defense giant Raytheon to sell its missile to the DoD.

The “Buy American” provisions laid down and regularly upheld by Congress for defense procurement does have protectionist overtones, but there is a national security argument as well. In the event of a major, protracted conflict with Russia or China, it wouldn't be advantageous to have major suppliers located an ocean away or in occupied territory.

And maintaining the industrial base has long been a concern of the U.S. Navy because of the limited the number of trained workers with experience who are building ships and nuclear reactors.

Navy officials have testified that the shrinking industrial base, including the shipbuilders and the litany of subcontractors and vendors, is a significant concern. In 2015, then-head of the Navy's research, development and acquisition office Sean Stackley testified before Congress that some of the shipyards were just a contract away from going under.

“We have eight shipyards currently building U.S. Navy ships. And of those eight shipyards, about half of them are a single contract away from being what I would call ‘not viable,' ” Stackley told the Senate Armed Services Committee. “In other words, the workload drops below the point at which the shipyard can sustain the investment that it needs to be competitive and the loss of skilled labor that comes with the breakage of a contract.”

https://www.defensenews.com/top-100/2018/08/09/us-navys-focus-on-rapid-acquisition-is-opening-up-opportunities-for-europe/

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  • US Army picks two vehicle protection systems to evaluate realm of the possible

    December 10, 2019 | International, Land

    US Army picks two vehicle protection systems to evaluate realm of the possible

    By: Jen Judson WASHINGTON — The U.S. Army has picked two active protection systems to evaluate next fall for possible applications on a variety of ground combat vehicles. A Rheinmetall and Unified Business Technologies team received an $11 million contract from the Army to provide its StrikeShield APS system for the evaluation. And a DRS and Rafael team received a similar contract to participate, the Army confirmed to Defense News. After evaluating two active protections systems — StrikeShield and Rafael's Trophy VPS — in a 2018 demonstration, and determining neither were the right fit for an interim APS capability for the Stryker combat vehicle, it appears the door is opening back up for that capability. It is likely the solution the Army is evaluating from DRS and Rafael is Trophy VPS, Rafael's lighter version of its Trophy APS system that is being fielded on Abrams tanks. The Army found interim APS solutions for both its Abrams tanks and Bradley Infantry Fighting Vehicles, but the service has struggled to find one for the Strykers. The service moved quickly over the past several years to field combat vehicle protection against rocket-propelled grenades and anti-tank-guided missiles while it develops a future system. The service's new evaluation effort — conducted through the its new Vehicle Protective Systems (VPS) program office — will begin in October 2020 at Redstone Test Center in Huntsville, Alabama. “It provides a pathway to potential utilization of the system on vehicles in the current Army vehicle fleet as well as vehicles fielded in the future,” according to a Rheinmetall statement issued earlier this month. The Army will evaluate StrikeShield “as part of a larger effort to characterize APS performance against a wide variety of anti-armor threats,” Rheinmetall's statement read. “This significant contract award represents the first funded APS testing the Army will undertake of the StrikeShield system.” Rheinmetall and UBT funded the previous evaluation of the system for Stryker at the invitation of the Army. Based in Unterluess, Germany, Rheinmetall has been pushing to get its active defense system in front of the Army and under consideration for integration into U.S. combat vehicles for several years. The company seemed poised to be selected as the interim solution for the Stryker prior to the Army's demonstration last fall. The Army also considered Herndon, Virginia-based Artis Corporation's Iron Curtain APS for Stryker through a more extensive evaluation, but decided in August 2018 not to move forward in fielding it to Stryker units. The new round of evaluations considers limited characterizations focused on platform agnostic testing to garner additional data on hard-kill APS, the Army told Defense News in a written statement. The APS will be installed on a vehicle agnostic test riq, the service said, to inform APS considerations for “multiple ground combat platforms.” “The results of this activity will be leveraged to inform the Army's approach to future hard kill APS acquisitions,” the service added. While the Army has looked and, in some cases, acquired APS for the Stryker, Bradley and Abrams, it is also considering what protection systems are needed for its armored multipurpose vehicle, mobile protected firepower capability and Bradley's future replacement, the optionally manned fighting vehicle (OMFV). The evaluations are scheduled to start at the beginning of fiscal 2021 and will last roughly six months. https://www.defensenews.com/land/2019/12/09/us-army-picks-two-vehicle-protection-systems-to-evaluate-realm-of-the-possible

  • BAE Systems Wins $495 Million Contract from USAF

    August 26, 2020 | International, C4ISR

    BAE Systems Wins $495 Million Contract from USAF

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  • Milrem Robotics Led Consortium Awarded 30,6 MEUR by the European Commission to Develop a European Standardized Unmanned Ground System

    June 19, 2020 | International, Land

    Milrem Robotics Led Consortium Awarded 30,6 MEUR by the European Commission to Develop a European Standardized Unmanned Ground System

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