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Defence Secretary Gavin Williamson sets sights on next century of British air power as major fighter jet milestones are reached Defence Secretary Gavin Williamson has today revealed that Britain's combat air power has reached new heights whilst speaking in a brand-new hangar displaying one-hundred years of fighter jets. Speaking at RAF Marham, the Defence Secretary announced the UK now has nine F-35 Lightning jets ready to be deployed on operations around the world. The F-35 Lightnings will form the backbone of the UK's combat air fleet alongside the Typhoon jets, which the Defence Secretary also announced have now been fitted with a state-of-the-art complex weapons suite to vastly increase its capability. Under ‘Project Centurion', worth £425m over the past three years, the Typhoon now has deep strike cruise missile Storm Shadow, air-to-air missile Meteor and the precision attack missile Brimstone at their disposal. It means the jets have boosted capabilities to intercept airborne missiles and strike ground based targets, seamlessly taking over from the Tornado's attack role as it nears retirement. Completed on-time and to budget, the upgrades transform the fleet into a world-leading multi-role combat air platform for decades to come. Military engineers and personnel have worked together with hundreds of UK workers from British defence firms including BAE Systems, MBDA and Leonardo to reach the milestone. The Defence Secretary made the announcement in front of four different aircraft, in a brand-new maintenance hangar at RAF Marham, which he opened today along with a state-of-the-art new training centre. These facilities, along with resurfaced runways and new landing pads to accommodate the jet's ability to land vertically, are a key part of the £550m being invested in the Norfolk base. Defence Secretary Gavin Williamson said: As we bid farewell to the RAF's first century, we are setting our sights on the next 100 years. Our nation is moving into a new era outside the EU, and our huge achievements in air capability make our commitment to a role on the world stage clear to both our allies and our enemies. The incredible F-35 jets are ready for operations, a transformed Typhoon has the power to dominate the skies into the 2040s and we continue to look even further into an ambitious future. The RAF has long shown Britain at its great and global best, and today it lifts our nation to even greater heights. The year ahead will see the F-35 Lightning pilots and ground crew continue learning how to operate and maintain the jets in the new centre, which features state-of-the-art simulators, classrooms, and physical aircraft mock-ups. The facility provides a real-life training environment replicating the challenges that both pilots and crew will face in supporting and operating the F-35 Lightning. Pilots from 617 Squadron, who are already based at RAF Marham, will practice flying the next generation aircraft from four full mission simulators. Having the F-35s ready for operations on time is a huge landmark in what is the biggest defence project in history, which the UK has been a leading partner in for almost 25 years. Around 150 UK personnel had been working with the jets in the US before the first batch of aircraft came to the UK last summer. Not only does the programme offer the UK a game-changing military capability, but with British industry manufacturing 15% of a global orderbook of over 3,000 jets, it supports around 25,000 UK jobs and is projected to be worth around £35bn to the national economy. The Defence Secretary made the announcement in front of four aircraft, which represent the past and future of British fighter jets. They included the Tornado, which has been in-service since 1979, making its combat debut in the 1991 Gulf War, and which will be retired later this year. Its unique capabilities have now been transferred to the Typhoon. In addition to the Typhoon and F-35, the Tempest concept fighter jet model was also on show. The model, which represents an example of what the UK's future capability might look like, was unveiled last Summer at Farnborough International Air Show, when the Defence Secretary launched the nation's Combat Air Strategy to ensure the UK remains a world-leader in the sector for years to come. The aim is then for a next-generation capability to have initial operational capability by 2035. Chief of the Air Staff Air Chief Marshal Sir Stephen Hillier said: I am proud to confirm that the RAF's Combat Air capability has taken yet another significant step towards the realisation of our Next Generation Air Force. With its cutting-edge stealth technology, our F-35s are now ready to deploy on operations and, alongside our combat-proven Typhoon, offer a step-change in our ability to employ air power around the world. Furthermore, the successful integration of Stormshadow, Brimstone and Meteor on Typhoon completes and enhances the transition of world-class capabilities from Tornado and allows a stalwart of the RAF's Combat Air inventory to retire from service. The successful attainment of these milestones and the potential offered by Project TEMPEST will continue to assure the RAF's ability to protect the nation, defend the United Kingdom's interests and support the national prosperity agenda now and well into the future. The RAF has already trialled its Typhoon and F-35 Forces' interoperability. In a series of operational trials, the evidence clearly demonstrates the effectiveness of both platforms when operating alongside one another. With its larger payload and increased agility and range, the Typhoon will operate in concert with the stealthy F-35 and its next-generation sensors, making the RAF one of the few air forces with the ability to exploit the synergy of 4th and 5th generation combat aircraft and delivering the UK a potent force equipped to counter evolving threats in the global environment. The UK is a world-leader in the combat air sector, which supports over 18,000 highly skilled jobs with a mix of skills and technologies unique in Europe. The sector delivers a turnover in excess of £6bn a year and has made up over 80% of defence exports from the UK over the last ten years. https://www.gov.uk/government/news/defence-secretary-sets-sights-on-next-century-of-british-air-power

DAVID PUGLIESE, OTTAWA CITIZEN The Canadian Forces is preparing to take possession by the spring of the first of 25 used Australian F-18 fighter jets. Eighteen of the Australian aircraft will be flying while another seven will be used for testing and spare parts. The Department of National Defence has provided more details on the types of aircraft Canada is acquiring. “The requested mix is 12 A-model (single seat) and 6 B-model (dual seat) aircraft; however, this is subject to adjustment,” said Department of National Defence spokesman Dan Le Bouthillier. The final mix will be dependent on a number of considerations, including the condition and availability of aircraft, he added. The dual seat aircraft will be used for training, Le Bouthillier noted. The additional fighter jets will be used to augment operations and training. One of the first things that will be done to the used Australian F-18s that Canada is purchasing is that the aircraft will be outfitted with different ejection seats and software. The first two F-18s that Canada is buying from Australia will arrive sometime in the spring and will be sent to Cold Lake, Alta, Pat Finn, assistant deputy minister for materiel at the Department of National Defence said. “They land, they (the Australians) will remove their software and we'll install our software,” Finn explained in an interview. Also to be installed are ejection seats and a lighting system that is used on the CF-18s. “Ultimately the intent is the 18 aircraft are indistinguishable from our 76 aircraft,” Finn said. Canada has finalized its deal to buy the 25 used fighter jets from Australia, https://ottawacitizen.com/news/national/defence-watch/used-australian-f-18s-heading-to-canada-will-be-a-mix-of-single-and-dual-seat-aircraft

SSL continues to grow its small form-factor spacecraft business, leveraging the power of Maxar's broad space systems expertise PALO ALTO, CA, Jan. 10, 2019 /CNW/ - SSL, a Maxar Technologies company (NYSE: MAXR) (TSX:MAXR), and a leading provider of innovative satellites and spacecraft systems, announced today that it is leveraging Maxar's combined capabilities for a contract to define requirements for a small form-factor satellite that will monitor and measure methane emissions from oil and gas facilities around the world. The satellite, named MethaneSAT, will enable Environmental Defense Fund (EDF) to change the way we detect and analyze methane emissions and understand and combat climate change. Following design development, EDF anticipates awarding a contract in 2019 for the final design and manufacturing of the satellite. MethaneSAT will provide global, high-resolution detection of methane emissions from regions that account for over 80 percent of global oil and gas production on a weekly basis. The satellite's high precision will enable it to detect and quantify both high- and low-emission sources and accurately attribute them to relevant oil and gas infrastructure. To enhance its solution, SSL is working together with Maxar's DigitalGlobe, which is the global leader in commercial high-resolution satellite imagery. DigitalGlobe will provide technical input on the satellite payload design and guidance on the overall mission plan. "SSL's decades of experience in developing reliable spacecraft systems, combined with the full suite of space capabilities offered by Maxar Technologies, uniquely positions us to provide solutions for advanced missions, such as MethaneSAT," said Richard White, president of SSL Government Systems. "We're honored to lead the charge in accelerating innovation for missions that reveal critical insights about our changing planet and help to build a better world." SSL is building momentum in its small form-factor and low Earth orbiting spacecraft business with competitive solutions for government and commercial customers. In addition to designing MethaneSAT, the company is: Building DigitalGlobe's next-generation, high-resolution WorldView Legion constellation, which will more than double DigitalGlobe's capacity in important regions; Continuing to provide Earth observation satellites to Planet, with 13 SSL-built SkySats currently operating on orbit; And developing small to medium satellite solutions for the U.S. Department of Defense under the Small Spacecraft Prototyping Engineering Development and Integration (SSPEDI) award. See other ways that Maxar Technologies provides technologies and applications that Build a Better World. About SSL SSL, based in Palo Alto, California, is a leading provider of advanced spacecraft systems, with broad expertise to support commercial and government satellite operators and innovative space missions. The company designs and manufactures spacecraft for services such as direct-to-home television, video content distribution, broadband internet, mobile communications, in-orbit servicing, space exploration, and Earth observation. As a Silicon Valley innovator for 60 years, SSL's advanced product line includes state-of-the-art small satellites, and sophisticated robotics and autonomous solutions for remote operations. SSL is a Maxar Technologies company (NYSE: MAXR) (TSX: MAXR). For more information, visit www.sslmda.com. About Environmental Defense Fund Environmental Defense Fund (edf.org), a leading international nonprofit organization, creates transformational solutions to the most serious environmental problems. EDF links science, economics, law and innovative private-sector partnerships. Connect with us on EDF Voices, Twitter and Facebook. About Maxar Technologies As a global leader of advanced space technology solutions, Maxar Technologies is at the nexus of the new space economy, developing and sustaining the infrastructure and delivering the information, services, systems that unlock the promise of space for commercial and government markets. As a trusted partner, Maxar Technologies provides vertically integrated capabilities and expertise including satellites, Earth imagery, robotics, geospatial data and analytics to help customers anticipate and address their most complex mission-critical challenges with confidence. With more than 6,500 employees in over 30 global locations, the Maxar Technologies portfolio of commercial space brands includes MDA, SSL, DigitalGlobe and Radiant Solutions. Every day, billions of people rely on Maxar to communicate, share information and data, and deliver insights that Build a Better World. Maxar trades on the Toronto Stock Exchange and New York Stock Exchange as MAXR. For more information, visit www.maxar.com. https://www.newswire.ca/news-releases/maxar-s-ssl-selected-to-define-small-satellite-requirements-for-environmental-defense-fund-848303493.html

DEFENSE LOGISTICS AGENCY W & G Machine Company Inc.,* Hamden, Connecticut, has been awarded a maximum $27,604,800 firm-fixed price, indefinite-delivery/indefinite-quantity contract for aviation flutter dampeners. This was a competitive small business set-aside acquisition with two offers received. This is a five-year contract with no option periods. Location of performance is Connecticut, with a June 23, 2025, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2024 Army working capital funds. The contracting activity is Defense Logistics Agency Aviation, Redstone Arsenal, Alabama (SPRRA1-19-D-0049). Federal Prison Industries Inc.,** Washington, D.C, has been awarded a maximum $27,189,820 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for extreme cold/wet weather jackets. This is an 18-month base contract, with one one-year option period. Locations of performance are Kentucky, Georgia, and Washington, D.C, with a July 8, 2020, performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-F019). Medical Place Inc.,*** Montgomery, Alabama, has been awarded a maximum $15,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for hospital equipment and accessories for the Defense Logistics Agency electronic catalog. This is a five-year contract with no option periods. This was a competitive acquisition with 68 responses received; 18 contracts have been awarded to date. Using customers are Department of Defense and other federal organizations. Location of performance is Alabama, with a Jan. 8, 2024, performance completion date. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-19-D-0009). NAVY Dakota Creek Industries Inc., Anacortes, Washington, is awarded a $26,710,222 firm-fixed-price modification to previously-awarded firm-fixed-price contract N00024-18-C-2205 to exercise options for the detail design and construction (DD&C) of two yard tug 808-class harbor tugboats (YT 812 and YT 813) and accessory items to include 50-man inflatable buoyant apparatus and Navy Mk-7 life raft, as well as packaging and delivery to final destination. The base contract award was for the DD&C of four tugboats including YT 808, YT 809, YT 810 and YT 811. The contract includes options for accessory items (hoisting system, life rafts, special towing lights and electronic navigation charts), packaging and delivery, crew familiarization and provisioned item orders. Work will be performed in Anacortes, Washington, and is expected to be completed by August 2021. Fiscal 2018 shipbuilding and conversion (Navy) funding in the amount of $13,339,017; and fiscal 2019 shipbuilding and conversion (Navy) funding in the amount of $13,371,205 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. Integral Aerospace, Santa Ana, California, is awarded $14,315,721 for modification P00001 to a previously awarded firm-fixed-price contract (N00019-18-C-1036). This modification provides for external fuel tank testing and exercises option year one for the production and delivery of 114 external fuel tanks in support of the F/A-18E/F and EA-18G aircraft. Work will be performed in Santa Ana, California, and is expected to be completed in May 2020. Fiscal 2017 aircraft procurement (Navy) funds in the amount of $14,315,721 will be obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Boeing Co., St. Louis, Missouri, is awarded a $9,276,687 modification to previously awarded contract N00024-13-C-6402 for the Air Launch Accessory (ALA) and ALA shipping container for the ALA of the High Altitude Anti-Submarine Warfare Weapon Capability in support of the P-8A integration efforts. Work will be performed in St. Louis, Missouri, and is expected to be completed by May 2020. Fiscal 2019 weapons procurement (Navy) funding in the amount of $9,276,687 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. Raytheon Co., McKinney, Texas, is awarded $7,124,695 for firm-fixed-price delivery order N00383-19-F-G000 under previously awarded basic ordering agreement N00383-14-G-005D for the repair of the APY-10 radar system used in support of the P-8A aircraft. Work will be performed in Jacksonville, Florida (66 percent); and McKinney, Texas (34 percent). Work is expected to be completed by January 2021. Fiscal 2019 working capital funds (Navy) in the full amount of $7,124,695 will be obligated at time of award and funds will not expire at the end of the current fiscal year. One source was solicited for this non-competitive requirement in accordance with Federal Acquisition Regulation 6.302-1, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity. WASHINGTON HEADQUARTERS SERVICES Johns Hopkins University, Applied Physics Laboratory, Laurel, Maryland, has been awarded an $8,565,000 cost-plus fixed-fee contract to provide assessments and alternatives of offensive capabilities within the domains of air, land, sea, space and cyberspace, missions and warfare areas that asymmetrically mitigate threat effectiveness, impose cost, and/or create ambiguity in adversary decision-making. Work performance will take place in the National Capital Region, including Arlington, Virginia; and Alexandria, Virginia. Fiscal 2018 research, development, test and evaluation funds in the amount of $100,000; fiscal 2019 research, development, test and evaluation funds in the amount of $8,115,000; and fiscal 2019 operations and maintenance funds in the amount of $350,000 are being obligated on this award. The expected completion date is Dec. 29, 2019. Washington Headquarters Services, Arlington, Virginia, is the contracting activity (HQ0034-13-D-0003). ARMY Navistar Defense LLC, Lisle, Illinois, was awarded an $8,069,336 fixed-firm-price Foreign Military Sales (Iraq) contract for Navistar transport and cargo vehicles. One bid was solicited with one bid received. Work will be performed in Lisle, Illinois, with an estimated completion date of Sept. 8, 2019. Fiscal 2019 operations and maintenance Army funds in the amount of $8,069,336 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-19-F-0168). *Woman-owned small business **Mandatory Source ***Service-disabled, veteran-owned small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1727817/source/GovDelivery/

By ELIANA JOHNSON and DAVID BROWN Concerns about Patrick Shanahan's Boeing ties have re-emerged since President Donald Trump said he may be running the Pentagon ‘for a long time.' Acting Defense Secretary Patrick Shanahan's private remarks during his 18 months at the Pentagon have spurred accusations that he is boosting his former employer Boeing, people who have witnessed the exchanges told POLITICO — fueling questions about whether he harbors an unfair bias against other big military contractors. Shanahan, who spent 31 years at Boeing before joining the Pentagon in mid-2017, has signed an ethics agreement recusing him from weighing in on matters involving the mammoth defense contractor. But that hasn't stopped him from praising Boeing and trashing competitors such as Lockheed Martin during internal meetings, two former government officials who have heard him make the accusations told POLITICO. The remarks raise questions among ethics experts about whether Shanahan, intentionally or not, is putting his finger on the scale when it comes to Pentagon priorities. They also call new attention to a recent decision by the Pentagon to request new Boeing fighters that the Air Force has said it does not want — a request that Bloomberg has reported came after "prodding" from Shanahan. Concerns about Shanahan's ties to his former employer first surfaced during his confirmation hearing to be deputy secretary, but they have re-emerged since President Donald Trump said last month he may be running the Pentagon “for a long time.” In high-level Pentagon meetings, Shanahan has heavily criticized Lockheed Martin's handling of the production of the F-35 fighter jet, which is expected to cost more than $1 trillion over the life of the program, according to one of the two sources, a former senior Defense Department official who was present. Shanahan, this official said, called the plane “f---ed up” and argued that Lockheed — which edged out Boeing to win the competition to build the plane in October 2001 — “doesn't know how to run a program.” “If it had gone to Boeing, it would be done much better,” Shanahan said, according to the former official. As the Pentagon's No. 2, Shanahan repeatedly "dumped" on the F-35 in meetings, calling the program "unsustainable," and slammed Lockheed Martin's CEO, Marillyn Hewson, according to the second source, a former Trump administration official. "'The cost, the out-years, it's just too expensive, we're not gonna be able to sustain it,'" this person said, quoting Shanahan. The former Trump official said Shanahan "kind of went off" about the F-35 at a retreat for Republican lawmakers last year at the Greenbrier resort in West Virginia. This angered several members of the delegation who had home-district interests in the F-35 program, the former official said. "He would complain about Lockheed's timing and their inability to deliver, and from a Boeing point of view, say things like, 'We would never do that,'" this former official said. Shanahan is the first Pentagon chief to come purely from the private sector since the 1950s and has virtually no government or policy experience. He became the acting Defense secretary Jan. 1, following former Secretary Jim Mattis' resignation over Trump's abrupt decision to pull U.S. troops from Syria and begin drawing down from Afghanistan. He has signed an ethics agreement barring him from weighing in on any matters involving his former employer, the Pentagon's fifth-largest contractor in 2017. Shanahan's experience at Boeing is “his only reference point," the former Trump administration official said. "He doesn't have a lot of other experiences to draw on. He owns it in a powerful way because he doesn't have the military experience, he doesn't have the experience in government. So when he talks about those things, he's very forceful." His remarks about the F-35 stand in stark contrast to those of the president, who regularly praises the stealth fighter despite initially slamming its high costs. The F-35 program, while experiencing a number of setbacks, technical delays and groundings throughout the years, is generally considered to be on the mend. The Air Force and Marine Corps variants have been declared ready to deploy, and the Navy version is expected to reach that point as early as next month. And unit costs have come down for all three variants as the plane matures. Trump has praised Shanahan's ability to cut costs, calling him a “great buyer.” He is now among the candidates the president is considering as a permanent replacement for Mattis. Asked for comment, Shanahan's office released a statement saying he is committed to his agreement to stay out of matters involving Boeing. “Under his ethics agreement, Mr. Shanahan has recused himself for the duration of his service in the Department of Defense from participating personally and substantially in matters in which the Boeing Company is a party,” his office said. Full article: https://www.politico.com/story/2019/01/09/defense-patrick-shanahan-boeing-pentagon-1064203

Drone pilots to register their drones and obtain a pilot certificate by June 1, 2019 January 9, 2019 Ottawa Transport Canada Transport Canada is committed to enhancing aviation and public safety while encouraging innovation and economic growth in the drone sector. Today, the Honourable Marc Garneau, Minister of Transport, announced Canada's new rules for remotely piloted aircraft systems, more commonly known as drones. The new rules, which will come into force on June 1, 2019, apply to all drone pilots flying drones between 250 grams and 25 kilograms that are operated within the drone pilot's visual-line-of-sight, regardless of whether the drone is flown for fun, work or research. The new simplified rules reflect significant consultations with Canadians and the industry. The final regulations introduce two main categories of drone operation: basic and advanced. The categories are based on distance from bystanders and airspace rules. Both categories have their own set of easy-to-follow rules that will require the drone pilot to: register and mark the drone with its registration number; pass an online exam and get a pilot certificate for basic or advanced operations; be a minimum age of 14 for basic and 16 for advanced operations, unless supervised by a person having proper certificates; stay below an altitude of 122 m (400 feet) above ground level; and stay away from air traffic. Only drone pilots who need to fly a drone outside the rules for basic or advanced operations will need to apply for a Special Flight Operations Certificate (SFOC) before they fly. Transport Canada encourages drone pilots to take the necessary time to review and fully understand the new rules for drones in Canada and to follow a course provided by a drone flight school before attempting to take an online exam or flight review. Drone pilots will need to have their Pilot Certificate and proof of registration readily available when flying their drone as of June 1, 2019. This can mean having an electronic version available on their mobile device or carrying a printed copy. Transport Canada has developed an improved, user-friendly website with information on the new regulations and helpful tools for all drone pilots available at: Canada.ca/drone-safety. Transport Canada's new drone services are available on our website. We invite drone pilots to create an account in the Drone Management Portal for easy access to these drone services at all times. Until the new rules come into force on June 1, 2019, recreational drone pilots must continue to follow the rules of the Interim Order Respecting the Use of Model Aircraft and pilots using their drone for work or research must continue to follow the conditions of their Special Flight Operations Certificate. All drone pilots are also subject to the Criminal Code as well as all provincial, territorial, and municipal laws governing areas such as privacy and trespassing. Endangering the safety of an aircraft is a serious offence. Anyone who violates the regulations could be subject to additional fines of up to $25,000 and/or prison. This applies to drones of any size used for any purpose. Quotes “We've listened closely to feedback from Canadians and have updated our regulations to balance practicality and the safe use of drones. Drones are part of an important economic sector with significant potential to improve lives and connect communities across the country. Our new regulations will create new opportunities for Canadians by establishing a safe and predictable regulatory environment where the industry can innovate and where recreational and non-recreational drone pilots can safely access Canadian airspace.” The Honourable Marc Garneau Minister of Transport https://www.canada.ca/en/transport-canada/news/2019/01/minister-garneau-unveils-canadas-new-drone-safety-regulations.html

By: Aaron Mehta WASHINGTON — When the U.K. rolled out its Modernising Defence Programme report last month, it highlighted a need to increase stores of weaponry to deal with threats from great powers around the globe. In his speech unveiling the document, Defence Secretary Gavin Williamson specifically stated that to “improve the combat effectiveness of our forces, we will re-prioritize the current defense program to increase weapon stockpiles. And we are accelerating work to assure the resilience of our defense systems and capabilities.” But what does that actually entail? During a Tuesday visit to Washington, Director for Strategic Planning Will Jessett said the U.K. plans to go about increasing weapon stockpiles in two ways. The first is the easy route: throw money at the problem. And a certain amount — the Ministry of Defence employee wouldn't say exactly how much — of the recent budget increase given by Parliament will indeed be going toward increasing stockpiles of armaments. The second part is more difficult, but goes to a throughline for the strategy document: the need to be smarter about how the British military uses its gear. “We've spend a shedload of money on producing the force structure that we have already. We're not necessarily generating and using it as effectively as we might have done,” Jessett said. “The first thing to do is to make sure that we are making the best of the existing capability that we have, and that [includes] making sure that we've got both the weapon stockpiles and the spares to make sure that you can actual[ly] generate the right numbers of aircraft squadrons." “So some of this will be the new money out of the couple of billion but a lot of this is going to be telling the services themselves,” he added. “There isn't a dollar figure, but there are strong incentives now back on the services to say: ‘Guys, you've got to [use] the capabilities that you've got already.' ” Looking at the Pentagon's efforts over the last few years shows that may be easier said than done. Pushing to find new efficiencies inside the U.S. Defense Department is an annual affair, with the latest attempt delayed by the removal of Chief Management Officer Jay Gibson and the fallout from the resignation of Defense Secretary Jim Mattis. And building up missile stockpiles is a logistical challenge for the department right now, with the Pentagon warning last May that producers of vital parts and materials are on the verge of going out of business or beholden to foreign ownership. Jessett acknowledged the Brexit-shaped elephant in the room, noting that the ability of the MoD to invest funding into new defense priorities will be directly impacted by any deal reached between Britain and the rest of Europe, particularly with foreign-made equipment. “Amongst the reasons we started to face this affordability delta in 2017 were because exchange rates did fall, relative to where they were in 2015,” he said. “I think back to this [question] about the terms of the deal. If we get a deal that's OK, I can imagine, personally, exchange rates not just stabilizing but somewhat improving. If not, it is by definition going to add further pressure into this.” But, he added, “that's not what we're planning for at the moment.” https://www.defensenews.com/global/europe/2019/01/08/to-build-stockpiles-of-weapons-uk-looking-at-two-pronged-approach

Angel Krasimirov, Tsvetelia Tsolova SOFIA (Reuters) - The Bulgarian government has approved a plan to start talks with the United States on buying eight new F-16 fighter jets to replace its ageing Soviet-made MiG-29s and improve compliance with NATO standards, the defense minister said on Wednesday. A deal for Lockheed Martin's F-16V Block 70 would be worth around 1.8 billion levs ($1.1 billion), Bulgaria's biggest military procurement since the fall of Communist rule some 30 years ago. The decision still requires parliament's approval. Other bidders had included Sweden, with Saab's Gripen jets, and Italy, with second-hand Eurofighters. Senior defense ministry and army officials say the F-16 is a multi-role fighter plane that had been tested in battle and had a long lifespan. The defense ministry has previously said that the United States does not need additional licenses and agreements to supply the war plans with the necessary weaponry and licenses, unlike the offers from Sweden and Italy. “The government is proposing to the parliament to allow it to start talks with the United States to acquire new war planes,” Defense Minister Krasimir Karakachanov told reporters. The center-right coalition government has a thin majority in parliament, which is expected to vote on the move next week. The plan has spurred heated political debates in the Black Sea country with supporters hailing it as a strategic choice for Bulgaria, whose NATO neighbors are also flying F-16s, while critics accused the government of breaching the tender rules. On Tuesday, the White House said the United States was ready to work with the government to tailor a deal that will fit Bulgaria's budgetary and operational requirements. Its bid at present exceeds the tender's estimated limit, officials said. “We believe that the F-16 Block 70 offers Bulgaria the best possible combination of price, capability and interoperability with other NATO air forces,” U.S. President Donald Trump's administration said in a statement. Bulgarian President Rumen Radev, a former air force commander and frequent critic of Prime Minister Boyko Borissov, is believed to favor the Swedish bid and has criticized the process as flawed and “a triumph of lobbying”. Critics have questioned whether the United States can deliver the first two F-16 jets within two years as required and pointed to a U.S. proposal for a one-off payment upon contracting rather than offering a long-term payment scheme as preferred in the tender. Sweden has expressed its disappointment over the decision and said its offer was well below the estimated budget, provided for deferred payment and was ready to deliver on time. The question of which warplanes to buy has been vexing successive governments in Bulgaria for more than a decade. Borissov's government re-launched the tender in July, after a parliament commission ruled that a previous process which favored the Gripen jets, should be reviewed. ($1 = 1.7057 leva) Editing by Kevin Liffey and Susan Fenton https://www.reuters.com/article/us-bulgaria-defence-jets/bulgaria-decides-to-start-talks-with-u-s-on-f-16-jet-deal-idUSKCN1P30W9

By: Valerie Insinna WASHINGTON — As the U.S. government shutdown continues into its 18th day, defense firms and industry advocates are beginning to worry that the pause in business could eat into companies' cash flow. The Defense Department is funded for fiscal 2019, with Congress having passed a spending bill for the new fiscal year in September. That means work on the military's weapons programs continue apace, but many defense companies also hold contracts with agencies that are not currently funded, like the Department of Homeland Security — which includes the Coast Guard as well as Customs and Border Protection — and NASA. The Aerospace Industries Association, a lobbying group that represents defense and commercial aviation companies, warned that impacts to the aerospace sector extend beyond the 800,000 federal workers who are furloughed or working without pay. For example, weapons sales and transfers to U.S. allies and partners are stalled as a result of the closure of the departments of State and Commerce, AIA said in a Jan. 8 statement. Research projects at NASA, the Federal Aviation Administration, and National Oceanic and Atmospheric Administration are suspended, “setting back development of game changing technologies.” And meetings between the government and industry have been canceled or delayed. “Every day the shutdown lasts, the impacts grow and become more difficult and more expensive to fix,” said AIA President and CEO Eric Fanning. “It's time to get these dedicated public servants back to work.” Tony Moraco, the CEO of government service and information technology firm SAIC, told investors Jan. 7 that the effects of the shutdown are expected to be short term and primarily affecting accounts with NASA, the FAA and the U.S. Department of Agriculture. Moraco characterized the effect on SAIC and Engility — the latter of which is set to merge with the former this year — as a “modest impact on revenues and potentially cash collection, which we think we can recover — mostly — if this is resolved in the near term.” But SAIC Chief Financial Officer Charlie Mathis said the government is already behind on payments to the two companies by about $40 million to $50 million. “If we get through this quickly, they could catch up,” he said, but the shutdown would have to be resolved within a week for the companies to hit their cash-flow goals for their fiscal year ending Jan. 31. Furthermore, the companies are seeing a hit of about $10 million per week in revenue as the shutdown progresses, and “if it continues, that number could increase,” Mathis said. The probability of an extended shutdown seems to be rising. The government shutdown started Dec. 22 amid disagreements between President Donald Trump and Congress over funding for a border wall that would separate the United States and Mexico. But with Democrats now controlling the House of Representatives, a deal on funding for the wall may take weeks and could propel this shutdown past the 21-day mark of the 1995 shutdown, currently the longest on the books, according to CNN. Defense contractors will eventually get paid back for work accomplished while the government was shut down, but there could be long-standing consequences. If the shutdown persists for a protracted amount of time, there could be repercussions for the federal government's recruiting pipeline, as well as the balance of federal employees and contractors, said Byron Callan, an analyst for Capital Alpha Partners. “How will this shutdown impact the ability of federal agencies impacted by the shut-down to recruit and retain skilled individuals?” he wrote in an emailed analysis of SAIC's investor meeting. “There might be near-term collateral damage if people leave government service, but a 1-3 year factor to consider is how this shutdown and the potential for future ones accelerates reliance on federal service contractors.” https://www.defensenews.com/industry/2019/01/08/us-government-shutdown-creating-angst-for-defense-contractors