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By: Leo Shane III WASHINGTON — Senators on Thursday advanced an $857 billion appropriations measure that includes full defense funding for fiscal 2019 and raises hopes that Congress may be able to avoid a government shutdown or short-term budget extension for Pentagon programs this fall. The measure, which passed 85-7, includes money for the departments of defense, health and human services, labor and education. The so-called “minibus” of appropriations bills was touted by Senate Majority Leader Mitch McConnell, R-Ky., as making America “stronger overseas and right here at home.” Of the total, $675 billion would be set aside for military spending next year, including nearly $68 billion in overseas contingency funds. The levels are in line with the recently adopted defense authorization bill and the budget deal reached by Democrats and Republicans last spring. “The funds meet many of the requirements of our military commanders, equipping and training units to meet and to overcome the most dangerous of emerging global threats,” McConnell said before the vote. “As ever, we are to provide adequate training, weaponry and skills so that Americans always prevail on the battlefield.” Full article: https://www.militarytimes.com/news/pentagon-congress/2018/08/23/senate-passes-675-billion-defense-budget-bill-with-hopes-of-avoiding-funding-lapse-next-month

by Chris Thatcher When Tom Enders, then the chief executive officer of Airbus, announced in October 2017 that Canada would become the company's fifth home country and first outside of Europe, following a deal with Bombardier to acquire a majority stake in the C Series passenger jet, small- and medium-sized Canadian aerospace companies had reason to be optimistic. Canada has typically ranked eighth or ninth among Airbus suppliers. But with the C Series now firmly under the Airbus tent (it was renamed the A220 in July), a contract award in 2016 to provide the Royal Canadian Air Force with 16 C295W fixed-wing search and rescue (FWSAR) aircraft, and looming competitions for a future fighter jet and strategic tanker and transport aircraft, Airbus is aggressively sourcing more Canadian content. Before you make your pitch, however, Ruben Tauste Caro, responsible for Airbus's strategic procurement in North America, has a few words of advice: no bashing the competition, no me-too products, and go easy on the wonders of your new shop floor machinery. “I want you to tell me that you work in a very, very dedicated frequency. And in that frequency, I want you to tell me that you are the expert in a very specific niche. Then you've got me,” he told the Abbotsford Aerospace, Defence and Security Expo in August. Airbus routinely conducts in-person assessments of its prospective suppliers and, while cost, quality, and on-time production are obvious baseline requirements, what interests Tauste Caro are signs of continuous improvement and true innovation. He said companies that claim to build a better mouse trap or be a one-stop shop for all his supply needs are quickly dismissed. “Tell me what you are really, really good at, and if I have an opportunity in the future, that will be yours,” he said. Continuous improvement need not involve large investments. A dashboard with measurable targets will suffice if it clearly shows progress, said Tauste Caro. “Show me your KPIs [key performance indicators]. If you don't [meet] a target that month, do you have an action behind it?” A clear ability to set and reach targets is important, he emphasized, because if there is ever an issue with product quality, “The question is, will you overcome that issue? Do you have the right procedures, the right way of working? Is your workforce engaged?” That's why he also asks questions about innovation. Most companies have a tendency to highlight their shop floor. While new machines and robotics are important, he always looks beyond to the people operating them. “Innovation is people,” he said. “{They] are the key parameters in the innovation equation...[D]on't waste time on machines, tell me your way of working.” In particular, how do ideas move from the shop floor to the C-suite? For suppliers eyeing opportunities with Airbus's commercial aircraft production, an ability to ramp up production and deliver at high rates is critical. “This is extremely important,” he stressed. “We cannot afford to have one aircraft system stopped in the warehouse.” Tauste Caro heads a small four-person team responsible for supplier identification and development throughout North America, so he encouraged companies to call or “knock on the door,” to keep him apprised of product changes, expansion plans, new strategies, and contract awards. “Feed me with that information. That is the daily bread and butter of my job within strategic procurement,” he said, explaining that if he's asked to recommend a supplier, “I have to be able to answer right away.” While ramp-up of A220 production this year and delivery of the first FWSAR aircraft in 2019 might mean more opportunities for Canadian suppliers, Airbus is particularly focused on the value proposition it can offer in a future fighter jet and air-to-air refuelling aircraft competition. “We need to work with you right now,” he told executives at the Abbotsford trade show, to identify industrial and technological benefits (ITBs) proposals for both programs and meet FWSAR obligations. There is a “huge requirement” for ITBs within the fighter jet program, he noted. “We need to be creative, we need the suppliers.” https://www.skiesmag.com/news/airbus-aggressively-sourcing-more-canadian-content

By: Aaron Mehta WASHINGTON — With China now the second-largest spender on defense in the world, Chinese companies are logically going to rank among the largest defense firms. But quantifying that number has proven incredibly difficult thanks to the opaque nature of both government spending and the firms themselves. Now, a London-based think tank has concluded that seven Chinese firms would rank among the top 20 defense companies in the world, each breaking $5 billion in defense revenues — a proportion that rivals any one nation outside the U.S. Lucie Beraud-Sudreau and Meia Nouwens, two researchers with the International Institute for Strategic Studies, looked at eight key defense firms from China — the China Aviation Industry Corporation (AVIC), China Electronics Technology Enterprise (CETC), China North Industries Group Corporation (NORINCO), China South Industries Group Corporation (CSGC), China State Shipbuilding Corporation (CSSC), China Shipbuilding Industry Corporation (CSIC), China Aerospace Science and Technology Corporation (CASC), and China Aerospace Science and Industry Corporation (CASIC). The researchers looked at the largest defense firms and key subsidiaries, excluding a pair of nuclear-focused Chinese companies, classifying each as defense- or civilian-focused. Then they used the differentiation to calculate how much of each company's total revenues was derived from defense-related sales. Full article: https://www.defensenews.com/top-100/2018/08/23/these-7-chinese-companies-each-topped-5b-in-defense-sales-and-could-rival-american-firms

By: Pierre Tran PARIS — European missile company MBDA and microchip maker Soitec said Aug. 21 they are acquiring Dolphin Integration, a design firm for low-power chips which has fallen into receivership. The two companies will buy through a joint venture the chip maker, which filed for insolvency July 24. Dolphin Integration has designed chips which are “indispensable” for certain highly classified sectors, including the French nuclear deterrent, a defense source said. MBDA will acquire 40 percent, while Soitec will own 60 percent. MBDA and Soitec will pay a total of some €6 million (U.S. $7 million) to acquire most assets of Dolphin Integration, pay some of the liabilities and inject a significant amount of cash to meet working capital requirements, the companies said. Further details of how the acquisition amount will be shared were not immediately available. All the business and staff will be kept on, but the sale price will not cover all amounts owed to creditors, Dolphin Integration said in an Aug. 21 statement. MBDA is a strategic customer of Dolphin Integration for defense applications since 2004, the missile company said. The acquisition will strengthen its industrial collaboration and long-term commercial pipeline for application specific integrated circuit and system-on-chip products, the company added. “With the support of MBDA, Dolphin Integration will be able to advance its positions in aerospace and defense design,” the missile company said. Other key clients include Airbus Defence & Space, Safran and Thales, besides MBDA, the defense source said. Soitec specializes in chips drawing on fully depleted silicon-on-insulator (FD-SOI) technology, running on low power and at high speed. The acquisition can be seen as an “offensive” move by securing a market upstream for FD-SOI, while MBDA takes a "defensive " step by protecting a strategic supplier, the defense source said. Soitec played an active role in an industry group which lobbied the Elysée president's office to support a European Project of Common Interest, the source said. Such projects are backed by the European Commission for cross-border work on infrastructure and energy. Soitec will seek to strengthen Dolphin Integration in the semiconductor market, to develop and promote products and services in strategic sectors such as mobile devices and infrastructure, data centers, and space and industrial applications, the chip specialist said. Dolphin Integration had annual sales of €17 million for the year to March 31, 2018 and employs 155 staff, of which 130 are design engineers. The company is based in Grenoble. MBDA's interest in semiconductors has sharpened since the U.S. blocked the sale of American chips for the Scalp cruise missile sought by Egypt to arm its fleet of Rafale fighter jets. https://www.defensenews.com/global/europe/2018/08/23/two-french-defense-heavyweights-scoop-up-dophin-chip-maker

YUKIO TAJIMA, Nikkei staff writer TOKYO -- Lockheed Martin has proposed that Japanese companies be responsible for more than half of the development and production of a next-generation fighter jet that Japan wants to introduce in 2030, Nikkei learned Wednesday. Lockheed is offering Japan an upgraded version of the existing F-22. The U.S. currently bans exports of the plane known as "the Raptor," which is considered the world's most powerful fighter, has stealth capabilities and is armed with eight air-to-air missiles. The U.S. aircraft manufacturer's decision to open the production to Japan comes out of the belief that there is little risk of technology leaks. The company also says providing the jet to Japan would contribute to the security of Asia. If the share of work pans out as proposed, it would strengthen Japan's defense industry and the Japan-U.S. alliance. Lockheed's proposal comes in response to concerns in Japan that American companies might monopolize the development and production of the upgraded warplane, leaving little room for Japanese partners' involvement. The company calls the plan a Japan-led framework. The next-generation fighter will replace Japan's F-2 jets, scheduled to retire around 2030. Tokyo initially looked for ways for Japan Inc. to completely develop a successor on its own, hoping to boost the domestic defense industry's orders, but the idea proved unfeasible due to technological and cost hurdles. The Japanese government sees Lockheed's proposal, which could deliver high performance at reduced development costs, as the most promising alternative. The next-generation fighter program is estimated to cost about 6 trillion yen ($54.2 billion), including development, acquisition and maintenance. Some voices are citing a need to update the F-22, which has been deployed since around 2000, and Lockheed's plan has the benefit of lowering upgrade costs shouldered by the U.S. Although Japan produced 60% of the jointly developed F-2, the U.S. handled engine development since Japan did not have the basic technology at the time. But Lockheed has expressed a willingness this time to shift development and production of new engines to major Japanese heavy machinery maker IHI in the future. If IHI's XF9-1 jet engine is adopted, Japanese companies could be responsible for more than 60% of the total work. In addition, the exports of high--margin military equipment for the project could ease the U.S. trade deficit with Japan. Mitsubishi Electric's fighter jet electronics system could be adopted, and Mitsubishi Heavy Industries will handle the development and production of wings, according to the plan. The aircraft's body, engines and the fighter system are to be made in the U.S., but Lockheed intends to use more Japanese-made components, incorporating them gradually until Japanese companies play a central role in development. To hasten development, Lockheed will send Japan F-22s that have not been deployed by the U.S. Air Force so that it can grasp its performance in advance. The updates will improve the plane's main wings and allow more fuel to be loaded, increasing the jet's range to about 2,200 km so it can be used to defend isolated islands and other missions. Although the F-22 has the most advanced stealth abilities in the world, it requires a special coating that is laborious to maintain. Maintenance will be simplified by using the same material as the F-35 stealth fighter, making it easier to perform drills and deploy for battle. One challenge is the cost. Lockheed estimates the price of the next-generation fighter will be far higher than the F-35's 15 billion yen-per-jet price tag. Lockheed estimates the price of a next-generation F-22 at about 24 billion yen if it is part of an order of 70 aircraft. Producing 140 of the jets could reduce the unit price to about 21 billion yen. There is also concern that including Japanese companies, which have not independently developed a fighter jet in recent years, could complicate production and ramp up costs. Lockheed initially estimated that the F-35A would cost about 10 billion yen per jet. Costs temporarily rose to 17 billion yen, however, when assembly was given to Japanese companies, a cause for concern this time. Some doubt that the U.S. will fully disclose core technology for the world's most powerful fighter jet. Although Lockheed plans to outfit the jet with several Japan-made weapons in an effort to include as much domestic technology as possible, the U.S. will initially be responsible for most of the work, with Japanese companies gradually joining the process later. It is unclear, however, when development will proceed to that second stage. "It is likely that the U.S. will not want to give up such core technologies as fighter systems and software," said Heigo Sato, a professor at Takushoku University. "The technological spillover to Japanese companies would be limited if they mostly receive subcontracting work." Although Mitsubishi Heavy assembles the F-35, which has begun deployment, it has been pointed out that having that job has hardly improved the company's technology knowledge. The U.S. Congress also turned down Japan's request for the F-22 to succeed the F-4 a decade ago because of hesitance about transferring military technology. Should technology transfers from the U.S. slow, it may hinder Japan's continued development of fighter jet technology. Japan must choose whether to develop its own jet, jointly develop with another country or update existing aircraft. Tokyo will make its decisions at the end of the year in its revised medium-term defense program. Boeing and Britain's BAE Systems have also made submitted proposals to upgrade existing planes. https://asia.nikkei.com/Politics/Lockheed-offers-Japan-majority-of-work-in-plan-for-new-fighter-jet

By: Daniel Cebul Lockheed's Martin second GPS III satellite has passed all of the U.S. Air Force's technical and safety tests and is ready to be launched, likely in 2019, according to a company statement Aug. 21. The statement marks the formal designation that the satellite is “available for launch.” The first GPS III satellite was available for launch in September 2017 aboard a SpaceX Falcon 9 rocket and is set to liftoff from Cape Canaveral Air Force Station in Florida before the end of 2018. The next satellite will launch aboard a rocket from United Launch Alliance. The new satellite constellation is expected to be a significant improvement over the current generation of satellites. According to Harris Corp., the company that provides Lockheed Martin with the satellites navigation payload, the next-gen satellites are equipped with “a Mission Data Unit (MDU) with a unique 70 percent digital design that links atomic clocks, radiation-hardened computers and powerful transmitters." This allows for signals three times more accurate than those on current GPS satellites, the company said. In addition to being more accurate, the satellite is also eight times more resistant to jamming. This model also adds and maintains signals to ensure compatibility with Global Navigation Satellite Systems and provide stronger signal integrity. Harris also unveiled an upgraded payload in November 2017 to be used for the Air Force's GPS III Follow On (GPS IIIF) program, which will begin with the 11th GPS III satellite. This next-gen payload will grant the clock signal for a new GPS III Search and Rescue (SAR) payload, and extend the satellite's service life. Lockheed Martin is expected to be the prime contractor. In June, the third GPS III satellite completed thermal vacuum and environmental testing to simulate how the satellite will hold up in the space's unforgiving environment. https://www.c4isrnet.com/c2-comms/satellites/2018/08/21/air-forces-next-gps-satellite-ready-to-boost-accuracy-anti-jamming-capabilities

By: Sam LaGrone The next phase of the Navy's effort to replace its decades-old ALQ-99 jamming systems on its fleet of electronic warfare aircraft is in a holding pattern amid a protest from a company cut from the competition, USNI News has learned. As part of rapid acquisition push for the new jamming technology, the Navy is splitting up the Next Generation Jammer (NGJ) ALQ-99 replacement work into three increments based on the frequencies the system must block – high-band, mid-band and low-band – to help shield U.S. aircraft from anti-air radar systems. In 2013, Raytheon won a $276 million award for the first portion of the NGJ project – the ALQ-249 mid-band jamming part of the new system – and was awarded an additional $1.2 billion for the work in 2016. In late 2017, Naval Air Systems Command announced a “demonstration of existing technology” contract to shape how it would pursue the low-band increment. The work would create “[a] demonstration that will lead to an assessment of the maturity level of the technologies that might be applied to a low band jammer pod,” a NAVAIR spokesperson told USNI News in a statement on Tuesday. “This will help inform the appropriate acquisition strategy of the program.” Last month, L3 and a team of Northrop Grumman and Harris were selected to move forward from a field of four competitors that also included Raytheon and a Lockheed Martin and Cobham team, USNI News has learned. Soon afterwards, Raytheon filed a protest with the Government Accountability Office, arguing it should have been selected to move forward with the low-band jammer effort. Both L3 and the Northrop Grumman/Harris team confirmed that their low-band tech was selected for potential further study by NAVIAR but referred additional questions to the Navy due to the ongoing protest from Raytheon. “We have a mature and exceedingly capable offering for Next-Generation Jammer Low Band,” a Northrop spokesman told USNI News in a statement. “Northrop Grumman stands ready to demonstrate that technology.” USNI News understands a Lockheed Martin/Cobham team was not selected for further study. A Lockheed spokesperson referred questions to the Navy citing the protest. In a short statement, Raytheon implied the Navy did not fully take into account the benefits of the company's existing investment into the ALQ-249 mid-band jamming technology. “We believe there were errors in the government's evaluation,” Dana Carroll, a Raytheon spokeswoman, told USNI News in a statement. “Our low-risk, open architecture pod effectively and affordably counters modern threats while maximizing reuse of proven technology and taxpayer investment.” The GAO has until October to reach a decision on Raytheon protest. The Next Generation Jammer program has been a weak point the Navy's push to revitalize its aerial electronic warfare portfolio after the service shrugged off developing an improved capability for years in favor of other priorities. The program was placed on the backburner for years while the U.S. was mostly engaged in conflicts with largely uncontested airspace. Full article: https://news.usni.org/2018/08/21/l3-northrop-selected-next-generation-jammer-work-program-stalled-raytheon-protest

Aireon and the Irish Aviation Authority (IAA) announced Aug. 22, 2018, that air navigation service providers (ANSPs), aircraft operators, regulators and search and rescue organizations can now pre-register for their free, global Aircraft Locating and Emergency Response Tracking (ALERT) service. The Aireon ALERT service will provide the last known position of an Automatic Dependent Surveillance-Broadcast (ADS-B)-equipped aircraft that is in an apparent distress state or experiencing a loss in communication. The service is only available to aviation stakeholders and offers precise position reports, free of charge. The Aireon ALERT system is expected to be operational in the first quarter of 2019 and will be operated out of the IAA North Atlantic Communications Centre in Ballygirreen, County Clare, Ireland. Enabled by Aireon's unique space-based ADS-B service, Aireon ALERT will fill a critical need within the aviation industry. For the first time, ANSPs, aircraft operators, regulators and search and rescue organizations will have access, on request, to exact position data for an aircraft in distress over the oceans, remote areas and anywhere else they may need aircraft position information in an emergency. “We are proud to host and operate the world's first truly global aircraft locating and emergency response tracking facility, based on the Aireon system's capabilities,” said Peter Kearney, chief executive officer of the IAA. “Our facility will be providing Aireon ALERT services 24 hours a day, seven days a week, 365 days a year. As long as an aircraft is broadcasting on 1090 MHz ADS-B, we will be able to locate it anywhere worldwide. This is a unique and secure cloud-based service, designed to the highest data protection standards.” Full article: https://www.skiesmag.com/press-releases/aireon-alert-now-open-for-pre-registration

BY: GARRETT REIM NASA started a several months-long series of flights on 3 August to identify the physiological impacts of flying in high-performance military aircraft on the human body. The flights are being conducted at NASA's Armstrong Flight Research Center at Edwards Air Force Base in California and will take place over 160 flight hours. The tests are managed by the NASA Engineering and Safety Center at Langley Research Center in Virginia. During the tests researchers will measure the breathing of five NASA pilots flying in F-18A/B and F-15D aircraft, while they use different equipment types and experience different flight conditions. The flight conditions that will be tested include benign environments, typical in instrument proficiency training, to more strenuous environments, such as those found in high altitude, aerobatic manoeuvring and combat manoeuvring, according to NASA. In recent years, the US Navy and Air Force have been perplexed by an increase in the number of pilots experiencing physiological events during flight across a variety of aircraft. Symptoms from physiological events include cognitive impairment, numbness, tingling, lightheadedness, behavioral changes and fatigue. Data collected will just serve as a baseline for comparison because NASA's aircraft still use the legacy technology of a Liquid Oxygen System as opposed to newer military aircraft that utilise an Onboard Oxygen System. https://www.flightglobal.com/news/articles/nasa-begins-test-flights-to-study-physiological-even-451308