News

By: Jarosław Adamowski WARSAW, Poland — As part of efforts to replace Soviet-designed copters with new aircraft, the Polish Ministry of Defence has signed a deal to acquire four AW101 helos from Leonardo for the country's Navy. The deal is worth some 1.65 billion zloty (US $430 million), and the aircraft are scheduled to be delivered to Poland by the end of 2022, the ministry said in a statement. The contract was inked April 26 at the European group's Polish subsidiary PZL Swidnik. Leonardo was the only bidder in the tender to supply the copters after Airbus Helicopters decided to pull out of the contest last December. The "offset requirements defined by the Polish [Ministry of Defence] made it impossible for Airbus Helicopters to submit a competitive offer," the manufacturer said in a statement sent to local news agency PAP. The new copters, fitted with anti-submarine warfare (ASW) and search-and-rescue (SAR) capabilities, are to replace the Navy's Kaman SH-2G Super Seasprite copters, according to First Deputy Defence Minister Wojciech Skurkiewicz. Local observers have also said the helos could replace the Polish Navy's Soviet-designed Mil Mi-14 copters. https://www.defensenews.com/global/europe/2019/04/29/poland-acquires-aw101-helos-for-navy-under-430m-deal

AIR FORCE The Boeing Co., Seattle, Washington, has been awarded a $5,700,000,000 indefinite-delivery/indefinite-quantity contract for KC-46 Pegasus Combat Capability (PC2). This contract provides for a broad range of post-production related non-recurring and recurring requirements centered on user-directed and Federal Aviation Administration-mandated KC-46 air vehicle needs. Work will be performed in Seattle, Washington, and is expected to be complete by April 28, 2029. This award is the result of a sole-source acquisition. Fiscal 2018 research, development, test, and evaluation funds in the amount of $9,121,895 are being obligated on the first delivery order at the time of award. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8609-19-D-0007). AAI Corp., doing business as Textron Systems, Hunt Valley, Maryland, has been awarded a $19,592,850 firm-fixed-price non-commercial requirements contract for the Joint Service Electronic Combat Systems Tester (JSECST). This contract provides for the production of the base JSECST, the laboratory JSECST and retrofit kits used on many aircraft, such as F-15, F-16, A-10, CV-22, C-130, UH-47, UH-60, F/A-18 and AV-8B. Work will be performed in Hunt Valley, Maryland, and is expected to be complete by April 28, 2021. This award is the result of a sole-source acquisition. No funds are being obligated at time of award. Air Force Life Cycle Management Center, Automated Test Sets Contracting Division, Robins Air Force Base, Georgia, is the contracting activity (FA8533-19-D-0005). NAVY Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $1,148,847,334 cost-plus-incentive-fee, cost-plus-fixed-fee, firm-fixed-price, cost share contract for sustainment services in support of the F-35 Lightning II aircraft for the Air Force, Navy, non-U. S. Department of Defense (non-U.S. DoD) participants and Foreign Military Sales (FMS) customers. Services to be provided include ground maintenance activities, action request resolution, depot activation activities, Automatic Logistics Information System operation and maintenance; reliability, maintainability and health management implementation and support; supply chain management; and activities to provide and support pilot and maintainer initial training. Work will be performed in Fort Worth, Texas (60 percent); Orlando, Florida (24 percent); Greenville, South Carolina (7 percent); Samlesbury, Preston, United Kingdom (5 percent); and El Segundo, California (4 percent). Work is expected to be completed in December 2022. Fiscal 2019 operations and maintenance (Air Force, Navy/Marine Corps); non-U.S. DoD participant; and FMS funds in the amount of $1,135,420,262 will be obligated at time of award, $811,246,309 of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to Federal Acquisition Regulation 6.302-1. This contract combines purchases for the Air Force ($477,920,120; 41.60 percent); Navy ($346,753,261; 30.18 percent); non-U.S. DoD participants ($231,207,693; 20.13 percent); and FMS customers ($92,966,260; 8.09 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-19-C-1022). Northrop Grumman Systems Corp., Aerospace Systems, Melbourne, Florida, is awarded $38,775,625 for cost-plus-fixed-fee modification P00007 to a previously awarded contract (N00019-18-C-1037) to procure the product support and software support activity efforts for the E-2D Advanced Hawkeye full-rate production Lot 7. Work will be performed in Melbourne, Florida (72 percent); Liverpool, New York (14 percent); St. Augustine, Florida (5 percent); Norfolk, Virginia (5 percent); Greenlawn, New York (2 percent); Woodland Hills; California (1 percent); and Indianapolis, Indiana (1 percent), and is expected to be completed in April 2020. Fiscal 2019 aircraft procurement (Navy) funds in the amount of $38,775,625 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Mancon LLC, Virginia Beach, Virginia, is awarded $30,000,000 for an indefinite-delivery/indefinite-quantity, fixed-price contract that includes provisions for economic price adjustment to acquire supplies and provide related store operation services required by Naval Supply Systems Command Fleet Logistics Center Norfolk for two commercial retail stores on the Naval Support Activity, Crane, Indiana, for materials needed by the Naval Facilities Command Public Works Department. The contract includes a five-year base ordering period with an option to extend services for a six-month ordering period pursuant to Federal Acquisition Regulation 52.217-8 which if exercised, the total value of this contract will be $33,263,944. All work will be performed in Crane, Indiana. The ordering period is expected to be completed by April 2024; if the option is exercised, work will be completed by October 2024. Fiscal 2018 working capital funds (Defense) in the amount of $100,000 will be obligated to fund the contract's minimum amount, and funds will expire at the end of fiscal 2019. This contract was competitively procured with the solicitation posted to the Federal Business Opportunities website, with five offers received. Naval Supply Systems Command Fleet Logistics Center Norfolk, Contracting Department, Norfolk, Virginia, is the contracting activity (N00189-19-D-0008). Bell Boeing Joint Project Office, Amarillo, Texas, is awarded $29,772,039 for cost-plus-fixed-fee modification to order N61340-18-F-0001 against a previously issued basic ordering agreement (N00019-17-G-0002). This order provides software and hardware upgrades for 13 flight training devices to modernize critical system components in the MV-22 simulator to increase training fidelity for aircrew and maximize training capability. Work will be performed in Jacksonville, North Carolina (42 percent); Miramar, California (24 percent); Quantico, Virginia (13 percent); Okinawa, Japan (13 percent); Chantilly, Virginia (5 percent); Fort Worth, Texas (2 percent); and Philadelphia, Pennsylvania (1 percent), and is expected to be completed in December 2024. Fiscal 2019 aircraft procurement (Navy) funds in the amount of $29,772,039 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Training Systems Division, Orlando, Florida, is the contracting activity. Raytheon Missile Systems, Tucson, Arizona, is awarded $19,530,007 for modification P00006 to a previously awarded cost-plus-incentive-fee contract (N00019-18-C-0088) for the engineering and manufacturing development and payload integration of the Miniature Air Launched Decoy-Navy. Work will be performed in Tucson, Arizona (50 percent); and Goleta, California (50 percent), and is expected to be completed in October 2019. Fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $9,765,002 will be obligated at time of award, none of which will expire at the end of the fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. ARMY Raytheon Co., Dulles, Virginia, was awarded a $663,060,634 firm-fixed-price contract for Troposcatter Transmission System, spares, repairs, warranty, system engineering, field support, training and sustainment. Bids were solicited via the internet with two received. Work locations and funding will be determined with each order, with an estimated completion date of April 25, 2029. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W15P7T-19-D-0218). (Awarded April 26, 2019) The Boeing Co., Mesa, Arizona, was awarded a $171,887,544 hybrid (cost, cost-plus-fixed-fee, and firm-fixed-price) contract for performance based logistics service in support of the AH-64E Apache attack helicopter fleet. One bid was solicited with one bid received. Work will be performed in Mesa, Arizona, with an estimated completion date of April 30, 2020. Fiscal 2018 working capital funds in the amount of $63,779,957 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-19-C-0024). (Awarded April 26, 2019) Golden Valley Electric Association, Fairbanks, Alaska, was awarded a $40,964,160 firm-fixed-price contract for electric utility service. Work will be performed in Fort Wainwright, Alaska, with an estimated completion date of April 30, 2029. Fiscal 2019 operations and maintenance, Army funds in the amount of $653,355 were obligated at the time of the award. U.S. Army 413th Contracting Support Battalion, Fort Wainwright, Alaska, is the contracting activity (W912D0-19-F-8U95). (Awarded April 26, 2019) The Boeing Co., Mesa, Arizona, was awarded a $39,478,219 modification (PZ0017) to Foreign Military Sales (Saudi Arabia) contract W58RGZ-17-C-0031 for post-production system support, which includes integrated product support, of the AH-64 aircraft in support of the Saudi Arabia National Guard. Work will be performed in Mesa, Arizona; Hazelwood, Missouri; and Riyadh, Saudi Arabia, with an estimated completion date of April 29, 2020. Fiscal 2019 foreign military sales funds in the amount of $39,478,219 were obligated at the time of the award. Army is the contracting activity. Lockheed Martin Corp., Orlando, Florida, was awarded a $30,794,224 modification (P00080) to Foreign Military Sales (Saudi Arabia) contract W31P4Q-15-C-0043 for Hellfire guided missile launcher and electronic assembly. Work will be performed in Orlando, Florida, with an estimated completion date of April 30, 2023. Fiscal 2010, 2011, 2017, 2018 and 2019 aircraft procurement, Army; operations and maintenance, Army; research, development, test and evaluation; foreign military sales; and other funds in the combined amount of $30,794,224 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Maverick Constructors LLC,* Lutz, Florida (W911YN-19-D-0001); ABBA Construction Inc.,* Jacksonville, Florida (W911YN-19-D-0002); Warden Construction Corp.,* Jacksonville, Florida (W911YN-19-D-0003); D & M Construction Group Inc.,* Gainesville, Florida (W911YN-19-D-0004); J.A.M. Construction Services Inc.,* Merritt Island, Florida (W911YN-19-D-0005); Core Engineering & Construction Inc.,* Winter Park, Florida (W911YN-19-D-0006); Johnson-Laux Construction LLC,* Orlando, Florida (W911YN-19-D-0007); and E.L.C.I. Construction Group Inc., North Miami, Florida (W911YN-19-D-0008), will compete for each order of the $30,000,000 firm-fixed-price contract for construction projects in support of the Florida National Guard. Bids were solicited via the internet with 28 received. Work locations and funding will be determined with each order, with an estimated completion date of April 25, 2024. U.S. Property and Fiscal Office of Florida is the contracting activity. (Awarded April 26, 2019) Saint-Gobain Performance Plastics, Merrimack, New Hampshire, was awarded a $19,491,157 firm-fixed-price contract for protective fabric shelter kits. One bid was solicited with one bid received. Work will be performed in Merrimack, New Hampshire, with an estimated completion date of April 28, 2024. Fiscal 2018 other procurement, Army funds in the amount of $1,681,301 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-19-D-3013). JCB Inc., Pooler, Georgia, was awarded a $17,071,687 modification (P00001) to contract W56HZV-19-F-0046 for High Mobility Engineer Excavator vehicles. Work locations and funding will be determined with each order, with an estimated completion date of Jan 31, 2021. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. (Awarded April 26, 2019) System Studies & Simulation Inc., Huntsville, Alabama, was awarded a $12,364,338 modification (0004 19) to contract W31P4Q-09-A-0019 for technical support services. Work will be performed in Huntsville, Alabama, with an estimated completion date of March 31, 2020. Fiscal 2020 and 2021 other procurement; and research, development, test and evaluation funds in the amount of $12,364,338 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Travis Association for the Blind, Austin, Texas, was awarded an $11,287,227 modification (P00003) to contract W56HZV-18-C-0067 for the repair, cleaning, warehousing, and distribution of organizational clothing and individual equipment. Work will be performed in Austin, Texas, with an estimated completion date of April 30, 2020. Fiscal 2019 operations and maintenance, Army funds in the amount of $11,287,227 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. PAE Government Systems Inc., Arlington, Virginia, was awarded an $8,153,796 modification (P00011) to Foreign Military Sales (Afghanistan) contract for the National Maintenance Strategy Ground Vehicle Support effort. Work will be performed in Kabul, Afghanistan, with an estimated completion date of Aug. 30, 2022. Fiscal 2019 other procurement, Army funds in the amount of $8,153,796 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. (Awarded April 26, 2019) MISSILE DEFENSE AGENCY Raytheon Missile Systems Co., Tucson, Arizona, is being awarded $26,991,627 for a modification (P00155) to the previously awarded sole-source, cost-plus-incentive-fee Standard Missile-3 Block IIA contract (HQ0276-10-C-0005). This modification provides for additional Ballistic Missile Defense upgrades and flight test support. The work will be performed in Tucson, Arizona, with an expected completion date of June 2020. Fiscal 2019 research, development, test and evaluation funds in the amount of $15,858,243 will be obligated at time of award. The modification increases the total cumulative face value of the contract by $26,991,627 (from $2,105,137,599 to $2,132,129,227). The Missile Defense Agency, Dahlgren, Virginia, is the contracting activity. DEFENSE INFORMATION SYSTEMS AGENCY Georgia Tech Research Institute (GTRI), Atlanta, Georgia, was awarded a sole source, non-commercial, cost-plus-fixed fee contract on April 28, 2019, in support of the Defense Information Systems Agency (DISA) National Leadership Capability Command office. This contract will provide for development and deployment of the Secure Integration Cloud, the Joint Access Database Environment and the encompassing system architecture known as Secure Web Services. The face value of this action is $8,508,928 funded by fiscal 2019 operations and maintenance funds. The total cumulative face value is $48,248,311. Performance will be at the contractor's facility. Proposal was issued via request for proposal, and one proposal was received from GTRI. This was a sole-source requirement sent to Georgia Tech Applied Research Corp. The period of performance is for a base period of 12 months beginning April 28, 2019, and two 6-month option periods through April 27, 2021. The DISA/Defense Information Technology Contracting Organization, Scott Air Force Base, Illinois, is the contracting activity (HC1028-19-C-0008). *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1829432/source/GovDelivery/

By Brian Garrett-Glaser Canadian simulator and training provider CAE is in talks with the U.S. Navy to add its new high-tech data analysis tool suite, CAE Rise, to existing and future programs, including aircrew training services for the T-44C Pegasus, according to the company. Launched for the civil aviation market in 2017, CAE Rise allows instructors to objectively assess pilot competencies using live data during training sessions, accessible via iPad interface. CAE pitches the system as a means of using big data analysis to reduce subjectivity in pilot assessment, allow instructors to focus more on teaching and help create more efficient training programs. The CAE Rise system can "detect everything for a maneuver, and it's able to tell the instructor what parameter went out of whack, where [the pilot] did not do according to standards,” said Terry Constantakis, CAE's director of civil aviation training solutions. “So in terms of key benefits for CAE Rise, we often use the term ‘better than the naked eye' in terms of detecting errors and helping the instructor provide assessments,” he added. “It also allows the instructor to focus more on soft skills. For example, when we look at things like grading, we noticed that when instructors have RISE they spend more time providing comments on soft skills like teamwork, communication and workload management — things that are not necessarily performance-based or technical skills.” CAE Rise has been adopted by a number of airlines in Asia, including a five-year agreement with AirAsia to train its long-haul pilots to fly for affiliate airline AirAsia X on the Airbus A330. More recently, in late 2018, CAE released its RISE data suite for the defense market, with key features like development on Microsoft Azure Government for cloud computing to meet government cybersecurity and compliance requirements. The company is offering CAE Rise to the Pentagon as an enhancement to its current contract for T-44C aircrew training devices, which the company began delivering in 2014. “As far as what branches of the U.S. military have expressed an interest, I will say we have had ongoing discussions with the U.S. Navy,” said a company spokesperson. “We have briefed and demonstrated to the Navy how CAE Rise could be used to enhance and improve naval aviator training.” “There are no other CAE Rise customers on the defense side that we can disclose currently,” the spokesperson added. CAE hopes the platform will, in addition to improving the quality of aviation training services, help address the global civil and military pilot shortage that is expected to worsen in coming decades. The company's analysis on pilot demand published in 2016 estimated a need for 180,000 new captains globally within the next 10 years. Drivers of that shortage differ regionally but include aging populations of pilots reaching retirement, expected growth in air travel and falling supply from universities, business aviation and military training compared to previous decades. https://www.aviationtoday.com/2019/04/25/cae-wants-help-pentagon-train-pilots-data-analysis/

By Stew Magnuson GEELONG, Australia — Very little excites the aerospace industry and the media that covers it more than the announcement of a new jet fighter program. So when the curtain went up in a Boeing tent at Avalon — The Australian Air Show revealing a full-size model of a new robotic jet fighter, the camera flashes popped off as if it were a star on a Hollywood red carpet. “It is a red letter day,” Australian Minister of Defence Christopher Pyne said while standing in front of the Airpower Teaming System, Boeing's name for the loyal wingman jet fighter, an unmanned aircraft intended to fly in formation with the nation's F-35A joint strike fighters and F/A-18E/F Super Hornets. It was also an auspicious day because the unmanned system would be the first indigenously developed aircraft Australia produced since the CAC Boomerang fighter during World War II. The program makes a statement to the world that Australia is no longer content to be merely a buyer of military equipment, but has ambitions to be a developer and exporter as well, said Pyne. “This is all testament to the fact that we are undergoing our largest buildup of our military capability in our peacetime history — $200 billion over the next 10 years.” While Australia is still buying pricey F-35s from the United States, attack-class submarines from France and armored fighting vehicles from a European consortium, it wants a significant portion of that $200 billion to stay in the country and help it create aerospace and defense sector jobs, officials said. The nation last year released the 2018 Defense Industrial Capability Plan spelling out how it would build a “broader and deeper defense industrial base” over the next decade. “The government's goal by 2028 is to achieve an Australian defense industry that has the capability, posture and resilience to help meet Australia's defense needs,” the plan stated. One of its main goals is to turn the nation into an exporter of military goods rather than just an importer. The day before the airshow, U.S. and other foreign contractors gathered in nearby Melbourne to hear from State of Victoria and Defence Ministry officials about the new ways of doing business in Australia. Damien Chifley, executive director of the defense industry branch in the Australian Department of Defence, said the approach now is to partner. The country's defense contractors are predominantly medium to small companies who can't go it alone. They need help bringing their innovative ideas to prime contractors. If a U.S. or other foreign company wants to vie for an Australian contract it must now submit an “industry capability plan,” which spells out exactly how they will work with local firms to bring the project to fruition, Chifley said. “The idea is they go out the main gate with Australian industry,” he said. These plans are not offsets, which is the mechanism used by some nations to make contractors invest a certain amount of dollars in the local economy as a condition of winning a contract. However, these industry capability plans will be weighed by the contracting authority when selecting a winning proposal, he noted. Claire S. Willette, CEO of the Australian Defence Alliance, said in an interview that the nation's effort to bolster its aerospace and defense sector should be seen in light of its losses in manufacturing jobs — particularly the automotive industry — rather than security concerns. Australia wants a “sovereign capability to support itself” in the defense industrial sector, she said. “From a long-term sustainable economic perspective, you need to build something. You need to have a growth area,” said Willette, an American who served in the Pentagon for 20 years before moving to Australia. “Because we did have this burgeoning defense industry and because we have some really niche, high-tech areas of excellence, I think that [the government] saw that this was a natural fit and something they could grow off of,” she said. Australian government officials and locally based U.S. contractors at the airshow were eager to promote the nation as a spot where they can find the talent to develop programs. Boeing, by far, has the largest and longest presence with more than 90 years experience doing business in the country and some 5,000 employees in its defense and commercial sectors. It features two large research facilities — Boeing Research and Technology-Australia and Boeing Phantom Works International in Brisbane — where work on the robotic jet fighter will take place. The company invested $62 million in research and development in Australia in 2018, company officials said. “We're going to prove that we can do big, audacious programs like this here in Australia,” said Darren Edwards, vice president and managing director of Boeing Defence Australia. Meanwhile, Lockheed Martin and local officials touted the country's success in winning F-35 sustainment contracts. As a partner nation in the program, Australian contractors can compete globally with other F-35 customers for component maintenance contracts. They received 343 out of a possible 388 such contracts in the latest round, building on the 64 they had received in the first round. Australian contractors have received a total of $1.3 billion in F-35-related contracts so far, said Royal Australian Air Force Air Vice-Marshal Leigh Gordon, head of the joint strike fighter division. “That is a really great example of the strength of Australian industry and its competitiveness in the global sphere,” Gordon said. Going hand in hand with Australia's ambitions in the defense realm is its renewed focus on space. In July 2018, it established the Australian Space Agency, which brought together about 11 different agencies spread out within the government at various ministries, said Kim Gina Ellis, senior lecturer on space industry engagement, governance and law at Swinburne University of Technology in Victoria. The government wants a central point to coordinate and bring all the civilian activities together, she said. Again, the long-term goal is job creation, she told National Defense. The government wants to add about 20,000 to the approximately 10,000 space sector jobs already in Australia, she said. Meanwhile, as is the case in the United States, the nation has a growing private sector launch industry with a handful of companies building small rockets and launch facilities for small satellites, she said. Along with telescopes and communications systems that have been positioned on the continent since the beginning of the space age, Australia features a favorable geographic location for inserting spacecraft into polar orbits, Ellis noted. The new agency will “help build the industry and show the rest of the world that we have these amazing capabilities and that we support most of the major space exploration programs,” Ellis said. Jeff Shockey, vice president of global sales and marketing for Boeing Defense, Space and Security, said in an interview that Australia is growing very close to investing 2 percent of its GDP in defense. “They are doing the right things. There is a lot going on down here in this region and they are at the forefront.” Boeing has ambitions to export the Airpower Teaming System to the other “five-eye” partners: the United States, United Kingdom, Canada and New Zealand. Shockey said Boeing is an international company and Australia is an enduring ally and partner. Building a new jet fighter outside the United States should not be seen as “off-shoring” work, he said. “We're a global company and we're doing work throughout the enterprise on this project and others, both domestically and abroad,” he said. “There is a great high-tech talent base here,” he added. And the wide-open spaces will be a perfect proving ground for unmanned aircraft, Shockey and other company executives said. Willette said: “We're never going to have the assembly lines for an F-18, an F-16 or a JSF, but we do have the componentry, the systems and the systems integration and the skilled engineering. Designing and fabrication and machining — and the professional services that back all that up — those are huge strengths for this country.” The government has several new programs to spark innovation that would be recognizable to the U.S. defense industry. It is setting up grand challenges, cooperative research centers, university research networks and small business research grants. It has what would be called in the U.S. “broad agency announcements” with pots of money dedicated over the next 10 years for organizations with ideas in fields such as intelligence, reconnaissance and surveillance, electronic warfare, cybersecurity, amphibious warfare, maritime and anti-submarine warfare, and air and sealift. The 2018 Defense Industrial Capability Plan was just one building block in a larger plan, said Willette. The Australian government is continuing to produce more policies surrounding manufacturing skills and science, technology engineering and math education. “Having a level of sovereignty, and integrity and resiliency in your supply chain is incredibly important from a national security perspective,” Willette added. The ideas for the new programs are based on long-established U.S. or U.K. acquisition programs, said a government official who was not authorized to speak on the record. The Australian government is keen to partner with U.S. universities and has established the Australia-U.S. Multidisciplinary University Research Initiative Program to help Australian schools establish themselves with the Pentagon's Multidisciplinary University Research Initiative. It will provide Australian colleges with grants of up to 1 million Australian dollars per year if they can team with U.S. counterparts in the MURI program. Willette said: “The message very clearly coming from Australia is: ‘partner with us.'” http://www.nationaldefensemagazine.org/articles/2019/4/29/australia-makes-moves-to-grow-its-defense-industry

Mike Rees The Air Force Research Laboratory (AFRL) has announced that, in conjunction with the Ohio Unmanned Aircraft Systems Center, it will begin testing groundbreaking aviation technology at the Springfield-Beckley Municipal Airport. The Federal Aviation Administration (FAA) recently confirmed that new technology developed in collaboration between AFRL and the State of Ohio – called SkyVision – safely, accurately, and effectively allows UAS to detect and avoid other aircraft while in flight. The validation of this aviation technology led the FAA to grant AFRL a certificate of authorization to test defense-related drone technology without reliance on a visual observer or chase aircraft. Typically, drones can only fly within the uninterrupted line of sight of the person operating the UAS, but this special waiver allows AFRL and the Ohio UAS Center, which is part of the Ohio Department of Transportation's DriveOhio Initiative, to use SkyVision to test drones beyond the visual line of sight within a 200 square-mile parcel of unrestricted airspace near the Springfield-Beckley Municipal Airport. “As our country steps more and more into the unmanned age of flight, this technology is on the forefront of the aviation frontier, making Ohio a critical national asset for the research and development of UAS technology,” said Ohio Governor Mike DeWine. “This also opens the door for commercial companies to work with Ohio, AFRL, and the FAA to test their own UAS-related technology using our SkyVision detection system. This is a major step in revolutionizing the transportation industry, with Ohio leading the way in aerospace, defense, and aviation innovation.” “This is an important development in the progression of unmanned aircraft,” said Major General William Cooley, Commander of AFRL at Wright-Patterson Air Force Base. “This waiver provides the latitude to test beyond-line-of-sight keeping AFRL on the leading edge of world-class research and accelerates the delivery of technology that makes a difference to the warfighter.” “By enabling our lower-altitude airspace for advanced modes of transportation, we'll be able to facilitate new opportunities around advanced autonomous aircraft research and development,” said Lt. Governor Husted. “This will bring investment to Ohio and solidifies Ohio's position as a world-recognized leader in aviation technology.” Ohio's SkyVision detection system could potentially be used by the state to develop and test UAS technology to assist citizens in the event of a natural disaster or to significantly enhance the capability of search and rescue teams to find missing persons in time-critical situations. Commercial companies, such as those looking to use drones to survey damaged infrastructure or hoping to launch drone commerce operations, will also now have incentive to move to Ohio to test their own UAS technology. VyrtX, a company based out of Dayton, is among the first companies that has committed to expand into Springfield to work with AFRL and the Ohio UAS Center. VyrtX is currently developing technology for the potential transport of organ donations between hospitals for transplant surgeries. UAS test flights will take place at heights ranging from 1,000 feet above ground to 10,000 feet mean sea level. Air traffic control experts from the Ohio UAS Center will operate SkyVision during each flight. The SkyVision detection system is located within a mobile unit so that it can be flexibly placed in optimum positions for each flight. “Today's announcement comes after years of hard work and collaboration among an incredible group of partners,” said Jeff Hoagland, President and CEO of the Dayton Development Coalition. “AFRL and Ohio had a bold vision to bring UAS into the national airspace for true beyond-visual-line-of-sight flight. The work done here will shape the industry for years to come.” The State of Ohio and AFRL both invested a combined $5 million for the research and development of SkyVision. Supported by the Ohio Department of Transportation, DriveOhio works to ensure Ohio's regulatory environment and public policies are conducive to the development of the infrastructure and technologies needed for smart mobility. AFRL and a delegation of Ohio UAS industry experts will showcase the SkyVision system at AUVSI Xponential in Chicago. https://www.unmannedsystemstechnology.com/2019/04/air-force-research-laboratory-tests-uas-traffic-control-system/

DEFENSE LOGISTICS AGENCY Sea Box,* Cinnaminson, New Jersey, (SPRD11-19-D-0100, $471,828,000); W&K Containers,* Mill Valley, California, (SPRDL1-19-D-0101, $19,513,750); and NexGen Composites,* Franklin, Ohio (SPRDL1-19-D-0097, $253,608,919) have each been awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity contract for ISO & Quadcon Containers. They are five-year contracts with no option periods. This was a competitive acquisition with four responses received. Locations of performance are New Jersey, Texas, California, South Carolina and Ohio, with an Oct. 29, 2024, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan. Freeman Holdings of Arizona, LLC, doing business as Million Air Yuma,* Yuma, Arizona, has been awarded a minimum $21,991,384 fixed-price with economic-price-adjustment contract for fuel. This was a competitive acquisition with 148 responses received. This is a 46-month contract with one six-month option period. Location of performance is Arizona, with a March 31, 2023, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2019 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia (SPE607-19-D-0076). Rantec Power Systems, Los Osos, California, has been awarded a maximum $8,429,618 firm-fixed-price contract for two different power supplies. This was a sole source acquisition using justification 10 U.S.C. 2304(c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a one-year base contract with one one-year option period for each power supply. The majority of the option is being exercised at the time of award. Location of performance is California, with a March 31, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-19-C-0106). AIR FORCE The Boeing Co., St. Louis, Missouri, has been awarded a $127,632,494 modification (P00003) to previously awarded contract FA2103-18-C-0061 for the B61-12 Life Extension Program. This modification provides for the initiation of an undefinitized contract action for Lot 1 and Lot 2 Long Lead items. Work will be performed in Saint Charles, Missouri, and is expected to be complete by Aug. 31, 2020. His modification brings the total cumulative face value of the contract to $131,932,494. Fiscal year 2018 and 2019 procurement funds, and fiscal year 2019 research and development funds, in the amount of $29,218,278 are being obligated at the time of award. Air Force Nuclear Weapons Center, Eglin Air Force Base, Florida is the contracting activity. Raytheon Co., McKinney, Texas, has been awarded a $94,272,118 fixed‐price‐incentive modification (P00004) to previously awarded contract FA8620-18-C-2001 for DAS‐4 production and upgrades. This modification provides for the purchase of an additional 54 production AN/DAS‐4 Multi‐Spectral Targeting System Model B High Definition/Target Location Accuracy (HD/TLA) turrets and one DAS‐1A to DAS‐4 turret unit upgrade. Work will be performed in McKinney, Texas, and is expected to be complete by Jan. 31, 2021. This contract involves foreign military sales to The Netherlands. Fiscal year 2017 aircraft procurement funds in the amount of $1,480,393, fiscal year 2018 aircraft procurement funds in the amount of $22,338,740, fiscal year 2019 aircraft procurement funds in the amount of $60,142,814, and foreign military sales funds in the amount of $10,310,171 are being obligated at the time of award. Air Force Life Cycle Management Center, Wright‐Patterson Air Force Base, Ohio, is the contracting activity. University of Dayton Research Institute, Dayton, Ohio, has been awarded a $46,794,000 indefinite-delivery/indefinite-quantity contract for Proactive Research Enabling Supportable Systems (PRESS). This contract provides for PRESS in order to improve materials and processes for maintainability and manufacturing. Work will be performed in Dayton, Ohio, and is expected to be complete by May 1, 2026. This contract was the result of a competitive acquisition and 3 offers were received. Fiscal year 2019 research, development, test and evaluation funds in the amount of $508,000 are being obligated on the first task order at the time of award. Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8650-19-D-5630). NAVY Granite-Healy Tibbitts, JV, Watsonville, California, was awarded $27,186,257 for firm-fixed-price task order N6247319F4540 under a previously awarded multiple award construction contract (N62473-16-D-1803) for construction of maintenance dredging piers 1, 3, and Paleta Creek at Naval Base San Diego. The maintenance dredging will re-establish the design operational and/or berthing depth required for United States Navy vessels and other visiting vessels. The dredge material is expected to be disposed of at upland disposal sites. All dredge material for upland disposal will be screened for unexploded ordnance and radiological debris, dried or dewatered prior to transport for disposal at a commercial landfill. The proposed maintenance dredging work will remove dredge material to restore the pier slips and creek area for safe, unrestricted navigation. The task order also contains one unexercised option, which if exercised would increase the cumulative task order value to $38,244,577. Work will be performed in San Diego, California, and is expected to be completed by November 2021. Fiscal 2019 operation and maintenance (Navy) contract funds in the amount of $27,186,257 are obligated on this award and will expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command, Southwest, San Diego, California, is the contracting activity. (Awarded April 25, 2019) Lockheed Martin Rotary and Mission Systems, Manassas, Virginia, is awarded a $26,890,125 cost-plus-fixed-fee contract for the procurement of Navy engineering services. This contract includes options which, if exercised, would bring the cumulative value of this contract to $201,706,155. Work will be performed in Manassas, Virginia (68 percent); Waterford, Connecticut (10 percent); Groton, Connecticut (10 percent); Middletown, Rhode Island (7 percent); and Newport, Rhode Island (5 percent), and is expected to be completed by December 2025. Fiscal 2018 and 2019 other procurement (Navy) and fiscal 2019 research development test and evaluation (Navy) funding in the amount of $5,155,627 will be obligated at the time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C. 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington, District of Columbia is the contracting activity (N00024-19-C-6400). Miller Electric Co. Inc. doing business as PEC Contracting and Engineering*, Reno, Nevada, was awarded a maximum amount $25,000,000 indefinite-delivery/indefinite-quantity contract for commercial and institutional building construction alterations, renovations, and repair projects at Naval Air Station Fallon. Projects will be primarily design-bid-build (fully designed) task orders or task order with minimal design effort (e.g. shop drawings). Projects may include, but are not limited to, alterations, repairs, and construction of administration buildings, maintenance/repair facilities, aircraft control towers, hangars, fire stations, office buildings, laboratories, dining facilities and related structures. Work will be performed in Fallon, Nevada. The term of the contract is not to exceed 60 months with an expected completion date of April 2024. Fiscal 2019 operation and maintenance (Navy) contract funds in the amount of $5,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by operation and maintenance (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website, with 11 proposals received. The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-19-D-2617). (Awarded April 25, 2019) Centerra-SJC II, LLC. *, Fort Worth, Texas, was awarded a $15,374,563 firm-fixed-price task order modification under a previously awarded indefinite-delivery/indefinite-quantity contract (N69450-15-D-1621) for exercise of options two, three, four, and five for renovations to 84 housing units. The work to be performed provides for complete exterior and interior repairs for 84 housing units at Tierra Kay Housing complex. The renovation of the Tierra Kay housing areas is to provide quality housing for unaccompanied service members, and will improve quality of life during their deployment to Guantanamo Bay. This will optimize energy performance of the housing area. The total task order amount after exercise of these options will be $18,612,025. Work will be performed in Guantanamo Bay, Cuba, and is expected to be completed by April 2020. Fiscal 2019 operations & maintenance, (Army) contract funds in the amount of $15,374,563 are obligated on this award and will expire at the end of the current fiscal year. Four proposals were received for this task order. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity. (Awarded April 25, 2019) Lockheed Martin, Rotary and Mission Systems, Moorestown, New Jersey, is awarded a $13,908,052 cost-plus-incentive-fee modification to previously awarded contract N00024-16-C-5102 to exercise an option for AEGIS Speed to Capability Development. The contract provides for systems engineering, modeling and simulation, and design for AEGIS Speed to Capability cycles as well as the completion of the development and fielding of the AEGIS Baseline 9 AEGIS Weapon System and integrated AEGIS Combat System on AEGIS Technical Insertion (TI) 12 configured destroyers as well as TI 12 and TI 08 configured cruisers. Work will be performed in Moorestown, New Jersey (97 percent) and Johnstown, Pennsylvania (3 percent) and is expected to be complete by May 2020. Fiscal 2019 research, development, test & evaluation (Navy) funding in the amount of $1,938,130 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Didlake, Inc., Manassas, Virginia, is awarded a $12,076,573 firm-fixed-price, indefinite-delivery/ indefinite-quantity modification for the exercise of option four for annual custodial services at Naval Air Station Oceana, Naval Weapons Station Yorktown, and Norfolk Naval Shipyard. The work to be performed provides for annual custodial services, including, but not limited to, all management, supervision, tools, materials, supplies, labor, and transportation services necessary to perform custodial services for office space, restrooms, and other types of rooms. After award of this option, the total cumulative contract value will be $53,345,575. No task orders are being issued at this time. Work will be performed at various installations in Portsmouth, Virginia (43 percent); Virginia Beach, Virginia (44 percent); and Yorktown, Virginia (13 percent). This option period is from May 2019 to April 2020. No funds will be obligated at time of award. Task orders will be primarily funded by Fiscal 2019 operation and maintenance (Navy) contract funds in the amount of $11,705,043 for recurring work will be obligated on individual task orders issued during the option period. Naval Facilities Engineering Command Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-15-D-0063). Lockheed Martin, Rotary and Mission Systems, Moorestown, New Jersey, is awarded a $9,142,030 cost-plus-incentive-fee modification to previously awarded contract N00024-15-C-5151 for AEGIS Ashore Support and Ship Integration and Engineering of the AEGIS Weapon System (AWS) for AWS Baselines through Advanced Capability Build (ACB) 16. The contract modification provides for AEGIS ashore on-site support in Romania and Poland, AEGIS Ashore Planning Yard support and Ship Integration Engineering support including technical data package and test package/procedure development; technical documentation; feasibility studies; configuration management support; lifecycle and system engineering; environmental qualification testing; topside analysis; Ballistic Missile Defense engineering; combat system alignment and integration of Advanced Naval Weapon Systems on DDG 51 Class ships. Work will be performed in Camden, New Jersey (29 percent), Deveselu, Romania (15 percent), Redzikowo, Poland (15 percent), Moorestown, New Jersey (13 percent), Norfolk, Virginia (9 percent), San Diego, California (9 percent), Pearl Harbor, Hawaii (5 percent), and various places below one percent (5 percent) and is expected to be complete by September 2019. Fiscal 2019 operations and maintenance (Navy) funding in the amount of $3,268,951 will be obligated at the time of award and will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY The Johns Hopkins University Applied Physics Laboratory LLC, a not-for-profit University Affiliated Research Center, Laurel, Maryland, has been awarded a ceiling $100,000,000 modification (P00003) to previously awarded indefinite delivery indefinite quantity (IDIQ) contract HR0011-17-D-0001 for engineering, development and research capabilities. The modification brings the total cumulative face value of the contract to $198,000,000 from $98,000,000. Work will primarily be performed in Laurel, Maryland, with an expected completion date of November 2021. IDIQ task orders can extend an additional six months until May 2022. No funds are being obligated at time of award. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1825952/source/GovDelivery/

By SAMANTHA MASUNAGA The year was 1989. The Pentagon was under the command of President George H.W. Bush and Defense Secretary Dick Cheney. And aviation giant McDonnell Douglas Corp. was riding high as the top federal contractor, grabbing 4.6%, or $9.15 billion, of all federal contracting dollars. The next two largest contractors, General Dynamics Corp. and General Electric Co., raked in about 4% and 3.4%, respectively. Thirty years and many acquisitions later, Pentagon spending has grown far more top-heavy. Today, Lockheed Martin Corp. and Boeing — which bought McDonnell Douglas in 1997 — together reaped almost 15% of total U.S. government contracting dollars in fiscal year 2017, according to the most recent federal numbers. The two aerospace giants are the only makers of fast combat jets in the U.S. and are the dominant players for military transport aircraft. The concentrated power of big defense companies became an issue two years ago when longtime Boeing executive Patrick Shanahan was confirmed as deputy secretary of Defense. Then in December, President Trump named him to serve as acting Defense secretary. After a monthlong ethics investigation into allegations that Shanahan promoted Boeing while slamming rival Lockheed Martin, particularly in discussions about its F-35 fighter jet contract, the Pentagon's office of inspector general concluded Thursday that Shanahan “did not promote Boeing or disparage its competitors.” “We did not substantiate any of the allegations,” the report said. “We determined that Mr. Shanahan fully complied with his ethics agreements and his ethical obligations regarding Boeing and its competitors.” Shanahan is considered a leading candidate for permanent Defense secretary. The question of possible favoritism toward Boeing had also been raised by some when the U.S. Air Force, in its 2020 budget, made a surprise request to purchase F-15X fighter jets, an update of that company's fourth-generation jet. The Air Force, Navy and Marine Corps have all made major commitments to the F-35, Lockheed Martin's more advanced and pricier fifth-generation fighter. The inspector general report said the Pentagon's mix of fourth- and fifth-generation aircraft was a decision made by former Defense Secretary James N. Mattis before Shanahan's confirmation to the department. A Defense official told trade publication Defense News that the decision was bolstered by concerns about keeping “multiple providers in the tactical aircraft portfolio.” But there was no contract competition based on a set of defined requirements — the way business typically works in the industry, said Richard Aboulafia, aviation analyst at market analysis firm Teal Group. “It's a duopoly structure business with a lot at stake,” he said of fast combat jet manufacturing. “It's amazing that no one considered the optics here.” In some cases, the military has encouraged monopolies. In 2006, Lockheed Martin and Boeing got government approval to form United Launch Alliance, a joint venture set up specifically to launch national security satellites. The venture was proposed after the companies argued there were not enough launches to sustain two competitors. “The market is more concentrated,” said Mandy Smithberger, director of the Center for Defense Information at the Project on Government Oversight, an independent watchdog group. “You see the government making decisions thinking about how it will impact industry probably more than they should be.” Still, when President Reagan was in office, there were a number of major manufacturers of tactical military jets — Northrop Corp., Grumman Corp., Boeing, McDonnell Douglas, and General Dynamics, to name a few, Aboulafia said. But as the Cold War ended in the 1990s, defense funding dried up, leading to major aerospace mergers, such as Lockheed and Martin Marietta, and Boeing's acquisition of Rockwell International's aerospace business and McDonnell Douglas. A push for commonality among the Pentagon's planes also led to the fewer numbers of tactical military jets. The idea was that using similar aircraft would lead to savings in development and production costs, Andrew Hunter, director of the defense-industrial initiatives group at the Center for Strategic and International Studies think tank, said in an email. As a result, the share of federal defense contracts awarded to the top largest private companies increased to 31.3% in 2000 from 21.7% in 1990, according to a National Bureau of Economic Research working paper on the effect of 1990s-era defense industry consolidation. In 2017, the share of the top five reached 35%, according to federal data analyzed for that paper by Stanford University researchers. The paper concluded that those mergers resulted in a less competitive procurement process. But it did not find evidence of a significant increase in acquisition costs for large weapon systems, said Mark Duggan, director of the Stanford Institute for Economic Policy Research and co-author of the paper. As the industry gets more concentrated, it can lead to concern that “there's only one or two potential contractors for a certain product, and then you may not get the kind of competitive outcome you want,” he said. The consolidation process hasn't slowed, driven by the perceived need to compete for more and bigger contracts. Last year, Northrop Grumman Corp. acquired spacecraft and rocket motor manufacturer Orbital ATK Inc. Months later, military communications firms L3 Technologies Inc. and Harris Corp. announced their intent to merge. Although acquisitions and mergers can lead to greater efficiency, they can also have a detrimental effect on product innovation, said Aboulafia of Teal Group. For example, he said, as aircraft manufacturers consolidate, clean-sheet designs may be more of a rarity in the future as there are fewer design teams in the industry from different companies. For Boeing, “in terms of designing a clean-sheet fighter jet, it's been many, many, many years,” he said. In 2017, Lockheed Martin won more than $50 billion in total federal contracting dollars, making the Bethesda, Md., company No. 1 on a list of the top 100 federal contractors, according to federal procurement data. Boeing was a distant second with more than $23 billion. When narrowed to weapon acquisition contract dollars in fiscal year 2017, Lockheed Martin's individual piece of the pie totaled about 17%, with Boeing further behind at about 7.5%, according to federal data analyzed by the Center for Strategic and International Studies. News of the Defense Department ethics investigation came after watchdog group Citizens for Responsibility and Ethics in Washington sent a letter to the acting Defense Department inspector general, asking him to investigate allegations that Shanahan had boosted Boeing while working in the Pentagon. The letter includes a description from a Politico story published in January, in which Shanahan allegedly criticized Lockheed Martin's work on the F-35 joint strike fighter program, saying it “would be done much better” if Boeing had won the contract. In that article, an unnamed former Pentagon official told the news organization that Shanahan said during a high-level meeting that Lockheed “doesn't know how to run a program.” The inspector general's report said none of the witnesses interviewed said they heard Shanahan praise Boeing in meetings or discussions or make disparaging remarks about Lockheed Martin. Shanahan told the inspector general's team that he had never praised a Boeing military product and that he had said “program management on the F-35 is inadequate.” Shanahan's Boeing career spanned more than 30 years, during which he led its missile defense systems and military helicopter units. He also served as senior vice president of the company's commercial airplane division and is known for his work on Boeing's 787 Dreamliner program, which was behind schedule when he first took the helm. Boeing declined to comment this month on the initiation of the ethics investigation. The company referred to a statement it made in January, saying Boeing officials had not spoken to Shanahan about its programs during “his entire Pentagon tenure” and that the company “adheres to and respects Acting Secretary Shanahan's decision to recuse himself from company matters.” Shanahan isn't the first industry executive to lead the Defense Department. Under President Eisenhower, Defense Secretary Charles Wilson joined the Pentagon after serving as chief executive of General Motors, which made military vehicles at the time. Other defense industry brass have also joined the Pentagon over the years, though in lower roles. Analysts say the Pentagon could benefit from having a leader who understands how industry works, and who has been on the other side of the negotiating table and can avoid being tricked. And the Defense secretary typically works less with industry representatives than deputies do. “Secretaries aren't making a lot of decisions on individual contracts,” Smithberger said. “They're setting the priorities for the department.” But the potential conflicts may be “hard to escape,” said Loren Thompson, defense analyst at the Lexington Institute think tank, which receives funding from both Boeing and Lockheed Martin. “Boeing is so big that almost every discussion of strategy, budgets or programs bears upon its interests,” he said. https://www.latimes.com/business/la-fi-boeing-lockheed-shanahan-20190426-story.html

By: Tom Kington ROME — The Italian government said it will purchase the troubled P.1HH drone from Italy-based Piaggio Aerospace as it seeks to keep the firm afloat, despite an apparent lack of interest in the platform from the Italian Air Force. The Ministry of Economic Development announced April 24 the acquisition of four drones, which are unmanned variants of the firm's P180 business aircraft. Confirming the purchase, the Defence Ministry said the purchase would serve the “operational needs” of the Italian armed forces and protect the “strategic value” of the company, while strengthening Italy's credentials as a partner in the pan-European EuroMALE drone program. The Ministry of Economic Development added that future purchases would follow, with an industrial source telling Defense News another four drones would be bought. Piaggio Aerospace was placed in receivership late last year by then-owner Mubadala, an investment fund based in the United Arab Emirates, which also canceled its planned order of eight Piaggio P.1HH drones. One reported reason for Mubadala's decision was its impatience as Italy dragged its heels on promises to buy an enhanced version of the drone, preferred by the Italian Air Force and known at the P.2HH. As Italy's parliamentary defense commission dragged its heels on approving the P.2HH order last year, Mubadala pulled the plug on the firm, even as work on its order of P.1HH drones was nearing completion. The decision put hundreds of jobs at Piaggio in jeopardy and left the firm with incomplete P.1HH drones. In March, Italian Air Force chief Gen. Alberto Rosso told Italy's parliament he was not interested in buying them, adding to speculation the drone program was dead. But he appears to be have been overruled, as Italy's government seeks to save jobs at the company. The industrial source said the four drones set to be purchased by Italy for the Air Force, plus the further four to be bought in the future, would be those originally destined for the UAE. One drone that had already been delivered to the UAE could now be returned for delivery to the Italian Air Force. The source said €70 million (U.S. $78 million) will be spent by the Italian Defence Ministry to achieve flight certification for the drones, which is expected to take between 12 and 18 months. Maintenance work and construction of the P180 will also now continue. The deal will allow a revived Piaggio to avoid layoffs and to find an “industrial partner,” the Ministry of Economic Development said. That could be Italy's Leonardo, although CEO Alessandro Profumo this month told Defense News he was only interested in Piaggio's engine maintenance activity. https://www.defensenews.com/unmanned/2019/04/26/italy-to-buy-drones-to-keep-company-alive-but-the-air-force-doesnt-want-them

By: Aaron Mehta WASHINGTON — Overall military expenditures rose 2.6 percent between 2017 and 2018, to hit a total of $1.82 trillion dollars, according to new research from the Stockholm International Peace Research Institute. The total from 2018 is 5.4 percent higher than 2009, and represents a 76 percent increase over 1998, a 20-year period. Sixty percent of global military spending came from five countries: The United States ($649 billion), China ($250 billion), Saudi Arabia ($67.6 billion), India ($66.5 billion) and France ($63.8 billion). Russia ($61.4 billion) and the United Kingdom ($50 billion) were the other two countries to spend $50 billion or more on defense. However, there are ups and downs among the biggest spenders. While the U.S. (4.6 percent, the first overall growth since 2010), China (5 percent) and India (3.1 percent) increased their respective military spending year over year, Saudi Arabia cut its spending by 6.5 percent, France by 1.4 percent and Russia by 3.5 percent. And overall defense spending per gross domestic product fell to 2.1 percent in 2018, representing $239 per global citizen, a 0.1 percent decrease over one year and a 0.5 percent decrease over 10 years. Notably, Russia ranked outside the top five for the first time since 2006. China, meanwhile, increased its military spending for the 24th consecutive year, and its spending is almost 10 times higher than it was in 1994; however, researchers warn that Chinese growth may slow in the coming year. “The annual rate of growth of China's military spending has slowed steadily since it reached a post-2009 high of 9.3 percent in 2013. The growth of 5.0 percent in 2018 was the lowest annual increase since 1995,” the authors note. “China has followed a policy of linking growth in military spending with economic growth. With its economic growth slowing in 2018 to the lowest level in 28 years, slower rates of growth in the coming years can be expected if China continues to follow this policy.” SIPRI, which is widely considered to be the authority on military expenditures and exports, having gathered such data for decades. Other key developments, as noted by the researchers: Military spending in South America rose by 3.1 percent in 2018. This was mainly due to the increase in Brazilian spending (by 5.1 percent), the second increase in as many years. Military expenditure in Africa fell by 8.4 percent in 2018, the fourth consecutive annual decrease since the peak in spending in 2014. There were major decreases in spending by Algeria (–6.1 percent), Angola (–18 percent) and Sudan (–49 percent). Military spending by states in the Middle East, for which data is available, fell by 1.9 percent in 2018. Total military expenditure by all 29 NATO members was $963 billion in 2018, which accounted for 53 percent of world spending. Military spending in Turkey increased by 24 percent in 2018 to $19 billion, the highest annual percentage increase among the world's top 15 military spenders. Six of the 10 countries with the highest military burden (military spending as a proportion of GDP) in the world in 2018 are in the Middle East: Saudi Arabia (8.8 percent of GDP), Oman (8.2 percent), Kuwait (5.1 percent), Lebanon (5 percent), Jordan (4.7 percent) and Israel (4.3 percent). https://www.defensenews.com/global/2019/04/28/heres-how-much-global-military-spending-rose-in-2018