1 août 2018 | International, Aérospatial

Despite Trump’s Rhetoric, U.S. Defense Firms Pitch Moving Production To India

As big defense firms line up to pitch their fighter planes to India, the government of Narendra Modi is demanding they build in India, something that might be at odds with the Trumpian America First philosophy.

By

WASHINGTON: The Trump administration has cleared the decks for what promises to be a huge increase in technology and weapons exports to India, putting the country on the same footing as members of NATO, and allies like Japan and Australia, when it comes to favored export status.

While the new status may pave the way for major U.S. defense firms to lock up multi-billion deals with the Indian government, those deals would likely come with the stipulation that production be moved to India, something American defense giants like Lockheed Martin and Boeing have promised to do, even if it runs counter to the Trump administration's focus on creating more manufacturing jobs at home.

Such offsets, as they are known in the arms export business, are a staple of such deals and are a crucial part of negotiations.

Commerce Secretary Wilbur Ross made the announcement yesterday as part of the US government's continuing efforts to draw closer to Delhi, partly as a bulwark against Chinese expansionism in the region. Granting India Strategic Trade Authorization status also comes as the Indian military is considering spending tens of billions of dollars on drones, fighters and helicopters made by U.S. defense manufacturers.

Ross, speaking at a U.S. Chamber of Commerce event, said the move reflects India's efforts to abide by multilateral export rules, and “provides India greater supply chain efficiency, both for defense, and for other high-tech products.”

India's ambassador to the United States, Navtej Sarna, added that it is a sign of trust in India's “capabilities as an economy and as a security partner, because it also...would allow the transfer of more sensitive defense technologies,” and “fleshes out our defense partnership in a big way.”

But the new trade status can only do so much, and India's decades-long reliance on Russian weaponry over U.S. or European equipment is something that shows no sign of changing anytime soon, a fact that rankles many on Capitol Hill.

In Washington, the House recently passed its version of the 2019 NDAA, which granted Defense Secretary James Mattis' request to waive sanctions on partner countries that have bought Russian arms in the past, but the Senate has yet to take up the bill, and is expected to vote on it some time next month. The waivers, Mattis said in a series of letters to lawmakers, would allow the Pentagon to forge closer ties with countries like India, Vietnam, and Indonesia, by not penalizing them for having Russian equipment, even as they move closer to the U.S.

But the chronically chaotic state of the Indian military's acquisition practices also presents significant hurdles, according to experts.

Air Marshal M. Matheswaran, former deputy chief of the defense staff in the Indian Ministry of Defense told an audience at the Stimson Center in Washington that the Indian government and military often seek to simply to “fill in technological gaps” they believe they have, rather than building strategically.

“Their procurement is a mess. They're not joint. They're risk adverse. They've just got a ton of problems,” one former White House official, who asked to speak anonymously, told me.

“Broadly, in procurement they have tried in the post-Cold War era to diversify their procurements as a political sop to potential partners,” he said. “They start to move more through the pipeline than they can actually pay for, and they end up building this very motley force in a way that's not always coherent.”

As it stands, the United States accounts for about 12 percent of India's defense imports, a number which is expected to grow 6.2 percent annually through 2023, according to a recent study by Avescent, a consulting firm.

The Indian defense budget, at more than $53 billion, is the fifth-largest in the world, and as the Avascent analysis noted, it “is also one of the most competitive,” as local companies battle it out, along with a mix of Russian, French, Israeli, and American firms. The air force, for example, flys Russian MiG and French Rafale fighters, along with American C-17 and C-130 transport aircraft and Israeli Heron drones.

In recent years, France has emerged as the big winner in several hard-fought awards, inking an $8.6 billion contract for 36 Rafale fighter aircraft in 2016 — which will serve as India's primary nuclear delivery aircraft — and a deal for six Scorpene-class submarines for $4.6 billion in 2005. As part of the government's “Make in India” initiative, most of the work on the subs will be done at the Mazagon dockyard in Mumbai.

But Russia isn't going anywhere. Moscow is on the verge of finalizing a $3.2 billion contract for four S-400 surface-to-air missile systems with India, part of about $12 billion worth of Russian arms deals in the works with the Indian government.

The two countries are also close to finalizing a $1.1 billion deal for 48 additional Mi-17-V5 military transport/utility helicopters, with final signatures expected during Russian President Vladimir Putin's October visit to India. According to local reports, the contract will mandate that 30 percent of the work be done by the Indian defense industry, as part of the Modi government's push to build up the Indian manufacturing sector. The helicopters joint U.S.-made Chinooks and Apaches in the country's rotary-wing fleet.

The Indian government says that it doesn't have a problem with such a mix and match approach, however, even if it does complicate supply chains.

Currently, the big contract up for an award is the Indian Air Force's requirement for 110 aircraft, expected to be worth as much as $15 billion.

Boeing has announced it would join with Indian firms Hindustan Aeronautics Limited and Mahindra Defense Systems to manufacture its F/A-18 Hornet in the country if it wins the contract, and Lockheed Martin has pledged to move its entire F-16 production line to India from Greenville, S.C., to India, potentially at the expense of 250 South Carolina jobs.

“The F-16 gives the Indian industry a unique opportunity to be at the center of the world's largest fighter aircraft ecosystem,” Lockheed exec Vivek Lallsaid earlier this year in his pitch, adding that the company was ready to equip the jets with the same target tracking device currently on the F-35, as well as a helmet-mounted tracking system and a new radio data link system.

Swedish defense giant Saab Group is also in the running for the fighter deal, and has announced it is ready to do a “full” technology transfer of its Gripen-E fighter jet production to India if it wins the competition.

Boeing, in conjunction with Indian manufacturer Tata has already moved part of its Apache helicopter fuselage manufacturing to India, and the factory will eventually be the sole supplier of the part for Boeing's worldwide sales. The promise was one of the keys to the company winning the $3.1 billion deal in 2015 for 22 Apache and 15 Chinook helicopters.

While the deal for the fighter planes shakes out over the coming months, the competition is merely one part of a larger American push, which included a recent visit by the Pentagon's top weapons buyer, Ellen Lord, and the upcoming “two-plus-two” meeting between defense minister Nirmala Sitharaman, Foreign Minister Sushma Swaraj and their American counterparts, James Mattis and Mike Pompeo.

And in a jab at the Russians, Indian officials announced this week that they would be replacing their Russian-made Pechora air defense systems around the capital in a $1 billion deal to buy the NASAMS-II, manufactured by Kongsberg and Raytheon.

https://breakingdefense.com/2018/07/despite-trumps-rhetoric-u-s-defense-firms-pitch-moving-jobs-to-india/

Sur le même sujet

  • BAE Systems Australia to expand F-35 precinct

    7 novembre 2022 | International, Aérospatial

    BAE Systems Australia to expand F-35 precinct

    The Deed, valued at more than $100 million, will enable BAE Systems to meet projected service and maintenance demand for the Royal Australian Air Force’s F-35 Lightning II fleet

  • Top intelligence officials fear U.S. behind in quantum computing, cyber

    22 juin 2018 | International, C4ISR

    Top intelligence officials fear U.S. behind in quantum computing, cyber

    By: Justin Lynch The universities and research institutions in the United States focusing on quantum computing are “sub-par,” a top National Security Agency official said June 21. The complaint is among a laundry list of examples, topped by cybersecurity, where American innovation in the intelligence field is struggling, said George Barnes, deputy director at the NSA. “We have to be better at playing the long game,” he said. Barnes added that the Chinese “can play the long game” and “they are taking steps that might not be realized for 20 years.” The warnings, made at the Capitol Hill National Security Forum in Washington, highlighted mistrust between the government and private sector, as well as the structural challenges of supporting innovation. Whether it is quantum computing, space or artificial intelligence, Robert Cardillo, Director of the National Geospatial-Intelligence Agency worried that “the moment will be too late” for American innovation. Experts say that when quantum computers are fully operational, they will upend the use of password-protected systems, artificial intelligence and other areas of information technology. “Whoever achieves quantum first, everything they are doing and have been doing is irrelevant,” Rep. Will Hurd, R-Texas, said. He added the United States needs to treat quantum the way it treated the Y2K crisis, where the government “spent billions of dollars and spent a decade preparing ... We need to be the leader.” Hurd said that he supports a recently proposed bill from Rep. Lamar Smith, R-Texas, that aims to “accelerate quantum research and development.” But the intelligence officials at the forum said that the very nature of American government that prioritizes short-term gains may harm innovation. With their centralized five-year plans, China does not have the potential sequesters and fluctuating budgets that are features of the U.S. government. Rob Joyce, the newly installed senior adviser at the NSA, said that government needs to give “more people the license to fail.” He said that while the agency doesn't want to squander taxpayer money, “oversight regulation” does not encourage innovation. Joyce said that the agency needs to boost partnerships with the banking industry, power companies and other areas of critical infrastructure because government has moved to a “support” role. “We are not the finishers now,” Joyce said. Asked what the most important emerging threat was for the NSA, Barnes answered with one word: “Cybersecurity.” “The attack surface is broad and the solution requires government and the public sector together,”Barnes added. Barnes said that that agency is not used to working with the private sector however, and it harms cybersecurity. “Trust is an issue.” https://www.fifthdomain.com/industry/2018/06/21/top-intelligence-officials-fear-us-behind-in-quantum-computing-cyber/

  • Contract Awards by US Department of Defense - November 29, 2019

    2 décembre 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contract Awards by US Department of Defense - November 29, 2019

    DEFENSE LOGISTICS AGENCY Bell Boeing Joint Project Office, California, Maryland, has been awarded a maximum $218,749,892 modification (P00006) exercising the first one-year option period of a one-year base contract (SPRPA1-20-F-CD01) with four one-year option periods for performance based logistics and engineering support for the V-22 platform. This is a firm-fixed-price requirements contract. Locations of performance are Texas and Pennsylvania, with a Nov. 30, 2020, performance completion date. Using customers are Navy, Air Force, Marine Corps and Foreign Military Sales to Japan. Type of appropriation is fiscal 2020 through 2021 Air Force, U.S. Special Operations Command, Navy and FMS appropriated funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. NAVY Raytheon Integrated Defense Systems, San Diego, California, is awarded a $74,726,993 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract for design agent engineering services for networks and network user systems on operational landing platform/dock (LPD)-17 class amphibious transport dock ships. Work will be performed in San Diego, California (80%); Norfolk, Virginia (15%); Mayport, Florida (5%) and is expected to be complete by December 2024. Fiscal 2020 operations and maintenance, (Navy) funding in the amount of $689,680 will be obligated at time of award and will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S. Code 2304 (c) (1), only one responsible source and no other supplies or services will satisfy agency requirements, as implemented by Part 6.302-1 of the Federal Acquisition Regulation. This contract was issued on a sole-source basis to Raytheon Integrated Defense Services. This requirement is for design agent engineering and technical services for the overall management, development, testing, troubleshooting, repair, configuration, maintenance and fleet sustainment of fielded networks and associated network user systems/clients on operational LPD 17-class amphibious transport dock ships. These services are in support of Naval Surface Warfare Center, Philadelphia Division, Code 52, which is responsible for the lifecycle in-service engineering agent support of mission critical interior communications data networks. The Naval Surface Warfare Center, Philadelphia Division, Philadelphia, Pennsylvania, is the contracting activity (N64498-20-D-0001). W.R. Systems, Fairfax, Virginia, is awarded a modification to a previously awarded (N65236-19-D-8001) indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, with provisions for firm-fixed-price task orders, performance based contract. This single award contract (SAC) is currently in its first year with a Feb. 15, 2020, contract expiration date. This modification increases the basic contract estimated ceiling by $61,999,996, and changes the cumulative estimated value of the contract from $49,999,995, to $111,999,992. This SAC is for position, navigation and timing and geospatial information services support to naval ships and shore facilities. Work will be performed in Norfolk, Virginia, and is expected to be completed by February 2020. This SAC was previously procured competitively by full and open competition via the Naval Information Warfare Systems Command e-commerce central website and the Federal Business Opportunities website. This sole-source contract was not competitively procured in accordance with 10 U.S. Code 2304(c)(1) and only one responsible source (Federal Acquisition Regulation subpart 6.302-1). The Naval Information Warfare Center, Charleston, South Carolina, is the contracting activity. General Dynamics/Electric Boat, Groton, Connecticut (N66604-20-D-D001); Huntington Ingalls/Newport News Shipbuilding, Newport News, Virginia (N66604-20-D-D002); and Oceaneering International Inc., Chesapeake, Virginia (N66604-20-D-D003) are being awarded a $49,921,536 indefinite-delivery/indefinite-quantity (ID/IQ) multiple-award contract to fabricate submarine safety/Level 1 (SUBSAFE/L1) hardware, and provide technical and engineering services. For these base ID/IQ five-year contracts, funding will not be obligated at time of award; the $1,000 minimum guarantee will be executed on each awardee's initial task order. Work will be performed at the contractors' locations and minimally at government locations, and is expected to be completed by November 2024. This multiple-award contract was competitively procured with three acceptable offers received via the Federal Business Opportunities website. This requirement is to provide SUBSAFE/L1 (or related) hardware, systems engineering, technical analyses, mechanical and electrical design, manufacturing, installation, test and evaluation, maintenance and repair services required to support existing and future fleet programs. In accordance with 10 U.S. Code 2304(c)(1), only a limited number of responsible sources and no other supplies or services will satisfy the needs of the agency. This tasking was limited to those activities qualified to perform SUBSAFE work per the Naval Sea Systems Command Notice 5000, fiscal 2019 Navy working capital funds. The Naval Undersea Warfare Center Division Newport, Newport, Rhode Island, is the contracting activity. Washington State Community College District #3, Bremerton, Washington, is awarded a not-to-exceed $18,000,000 five-year indefinite-delivery/indefinite-quantity contract for educational services in support of the apprenticeship, helper and after-hours program, which pays for tuition, lab fees, math fees, tutoring services and assessment fees in an effort to provide customers with quality, timely and cost efficient maintenance, modernization, and technical and logistics support by maintaining a highly trained and skilled workforce. These services are in support of Puget Sound Naval Shipyard and Intermediate Facility in Bremerton, Washington. This contract does not include options. Work will be performed in Bremerton, Washington, and is expected to be complete by December 2024. No funding will be obligated at the time of award. In accordance with Federal Acquisition Regulations Part 15, this was a competitive procurement with one offer received via the Federal Business Opportunities website. Operations and maintenance (Navy) funding will be obligated at the task order level prior to each semester. This is a commercial service contract that was competed in accordance with Federal Acquisition Regulation Part 15. Only one proposal by the incumbent was received. The Puget Sound Naval Shipyard, Bremerton, Washington, is the contracting activity (N4523A20D1300). ARMY General Dynamics Mission Systems, Taunton, Massachusetts, was awarded a $9,164,584 cost-plus-fixed-fee contract to procure contractor field service representative support services for the warfighter. One bid was solicited with one bid received. Work will be performed in Taunton, Massachusetts, with an estimated completion date of Nov. 30, 2020. Fiscal 2019 other procurement, Army funds in the amount of $6,363,737 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W15P7T-20-F-0004). AIR FORCE Tunista Services LLC, Honolulu, Hawaii, has been awarded a $7,362,228 firm-fixed-priced contract modification (P00006) to previously awarded contract FA4855-18-C-0001 for continuation of operations, maintenance and support services at Melrose Air Force Range. The contract modification provides for the exercise of option year two procured under the basic contract. Work will be performed at Melrose, New Mexico, and work is expected to be completed by Nov. 30, 2020. The total cumulative face value of the contract is $22,676,639. Fiscal 2020 operations and maintenance funds in the amount of $7,362,228 are being obligated at the time of award. The 27th Special Operations Contracting Squadron, Cannon Air Force Base, New Mexico, is the contracting activity. https://www.defense.gov/Newsroom/Contracts/Contract/Article/2029052/source/GovDelivery/

Toutes les nouvelles