Elta Systems, Hensoldt partner on system to consolidate submarine capabilities

Sur le même sujet

• 

  2 mars 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

  French defense firms fête formidable profits in 2019

  By: Christina Mackenzie PARIS – France's major defense companies are looking back at a strong 2019, thanks to a combination of exceptional contracts and the country's overall healthy economy, executives said this week. In the naval sector, Naval Group's orders shot up 44 percent to €5.3 billion ($5.8 billion) in 2019, taking the company's order book to a total of €15.1 billion ($16.6 billion). Of this, 38 percent is for the export market and 62 percent is for France. Roughly three quarters of the business were in the shipbuilding sector, with almost one quarter in services. These figures do not include the whole of the contract to build 12 submarines for Australia, “as this income will be shown as it is paid, tranche by tranche,” explained outgoing CEO Hervé Guillou. In addition, the group saw a 6 percent rise in EBIT (earnings before interest and taxes) to €282 million ($310 million) and a 3 percent rise in revenues to €3.7 billion ($4 billion). Guillou, who will be replaced as CEO in March by Pierre-Eric Pommellet, said his successor had four main challenges for the future: delivering the Suffren submarine; accelerating production in the face of Chinese competition; consolidating the group's international presence; and developing the workforce. In the land sector, revenues for Arquus, the French company which is the defense arm of Sweden's Volvo Group, rocketed 72.5 percent between 2017 and 2019. CEO Emmanuel Levacher said he was not allowed to give revenue and sales figures for Arquus, whose revenues are included in the Volvo “Group functions and other” column. However, those data show net sales for 2019 were SEK8.8 billion ($911.4 million), which means they are likely around the $660 million mark. Levacher was all smiles announcing “a very great year” that was “exceptionally rich,” remarking that “this is remarkable growth for an industrial company.” He said he expected the company to grow a further 10 percent in 2020. Exports accounted for 42 percent of the revenue. Levacher was able to put a figure on contracts signed in 2019: €1.2 billion ($1.3 billion) “mostly in Africa,” but also a tranche of €214 million ($235 million) in the framework of the CaMo contract with Belgium for 382 Griffon multirole armored vehicles and 60 Jaguar armored reconnaissance and combat vehicles to be delivered between 2025 and 2030. Levacher said contracts were also signed for “a few dozen” Sherpa and Dagger vehicles for the Middle East. He was optimistic for the future, remarking that “all of the French army's military trucks, whether they be 4×4s, 6×6s, 8×8s all need to be changed in the next five years.” He said the company had developed a specific truck to meet these needs as the call for tender will be published before the end of this year. In the defense-electronics sector, Thales's CEO Patrice Cain also described 2019 as “a good year in which we progressed.” Its EBIT rose 19 percent to slightly over €2 billion ($2.2 billion), “the first time we've gone over the symbolic bar of €2 billion,” he said. Defense accounts for 40 percent of the group's revenues. Order intakes in the defense and security sector rose a record 17 percent to €9.9 billion ($11 billion) while sales rose 6.4 percent, “a little higher than anticipated,” according to CFO Pascal Bouchiat, to €8.3 billion ($9 billion). These include Thales and Babcock winning the bid for the T31 frigate in the UK against BAE Systems. Bouchiat noted that “several multi-year contracts” had been signed “underpinning long-term growth” for the group. Finally, in the military-aircraft sector, Dassault Aviation recorded an order intake of €3.3 billion (against €2.7 billion in 2018), the bulk of which (€2.6 billion) was for France and includes the integrated support contract for the French Rafale over the next 10 years and an additional order for supplemental development and integration work concerning communications for the F4 standard of the aircraft. Net sales shot up 44 percent to €7.3 billion due to the record number of 26 Rafales delivered in 2019. CEO Eric Trappier said that in 2020 Dassault expected to deliver 13 Rafales and he saw a tendency of governmental authorities to buying the company's Falcon business jet for surveillance and reconnaissance missions. Trappier said that in 2020 the company would continue to try and export the Rafale and was notably working on the Finnish and Swiss fighter competitions. Both countries are expected to make their decisions in 2021. https://www.defensenews.com/global/europe/2020/02/28/french-defense-firms-fete-formidable-profits-in-2019

• 

  31 décembre 2018 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

  Six things on the Pentagon’s 2019 acquisition reform checklist

  By: Aaron Mehta WASHINGTON — Under the purview of Defense Secretary Jim Mattis, reform has become a buzzword inside the Department of Defense, with every office trying to find ways to be more efficient, whether through cost savings or changes to bureaucracy. The department's Acquisition and Sustainment office, headed by Ellen Lord, manages billions of dollars in materiel; and by Lord's own belief, it is ripe for changes that could net the department big savings. On Dec. 17, Lord sat down with reporters and outlined a series of goals for 2019 that she hopes will help transform how the Pentagon buys equipment. Here, then, are six key items to watch for in the coming year. 1. Rework the department's key acquisition rules: The DoD Instruction 5000.02 is a key bedrock that forms the basis of how the defense acquisition system works, guiding acquisition professionals in their day-to-day program execution. And if Lord gets her way, she'll largely rip it up and start over. “In 2019, one of my key objectives is to rewrite 5000.02. We have, right now, this huge, complicated acquisition process that we encourage our acquisition professionals to tailor to their needs,” Lord said. “We are going to invert that approach and take a clean sheet of paper and write the absolute bare minimum to be compliant in 5000.02, and encourage program managers and contracting officers to add to that as they need for specific programs.” Lord envisions taking the massive, unwieldy 5000.02 guidance and getting it down to “a couple page outline of what you need to do,” with “simple” contract language and an easy-to-follow checklist “so that this isn't an onerous process.” “I'm encouraging what I call creative compliance. I want everyone to be compliant, but I want people to be very thoughtful and only use what they need,” she said. “This is literally starting with a clean sheet of paper, looking at the law and the intent, and working to vastly simplify this.” Andrew Hunter, a former Pentagon acquisition official now with the Center for International and Strategic Studies, notes that the instruction is supposed to be rewritten every five years to keep it fresh, and now is probably the right time to start looking into that. But, he added, “a lot of what she says she wants to do are things that sound very similar to my ear to what [Lord's predecessor] Frank Kendall was trying to do in the last rewrite. He tossed stuff out left and right, worked very hard to create the different models, put in extended discussions of different potential models of programs so that it would be obvious to people there's not one single way to do a program.” Hunter is cautious when it comes to a massive shift in the 5000.02 system. “If you literally tell the system, ‘All the rules are repealed, go do everything you want,' the reaction won't be a sudden flood of creativity that astounds you with the amazing talent at the department, even though there is a lot of talent there," he said. “What's more likely to happen is you have total paralysis because everyone is sitting around going: ‘Oh no, the rules are gone. How do we know what we can do? What do we do now?' But over time that might shake out.” If Congress needs to get involved, Lord said, she's prepared to go to Capitol Hill “because I know they are partnering with us and they want to make sure we do things in a simpler, most cost-effective manner.” 2. Intellectual property rules: A long-standing fight between the department and industry is over who should own the intellectual property used by the American military. Before fully taking on 5000.02, Lord hopes to write a departmentwide intellectual property policy. Lord pointed to the “very good job” done by the Army on creating an IP policy and said her goal is to build on that to create a standard across the DoD. “From an industry perspective, we are trying to be consistent across all the services and agencies, so that we don't have different requirements for similar needs,” Lord said. “So intellectual property is a good example. We'd like to have the same kind of contract language that can be tailored to individual needs, but basically have consistent language.” David Berteau, a former Pentagon official who is now the president and CEO of the Professional Services Council, noted it is hard to read the tea leaves for what Lord may be planning based on her public comments. But he pointed out the long-standing challenge for the Pentagon — that nearly 70 percent of all program costs are life-cycle sustainment and maintenance costs — as a sign that something needs to change so the department can avoid major issues in the future. Depending on how new rules are implemented, the use of IP might drive down costs — or, he warned, it might lead to companies unable to compete, forcing the Pentagon to pay more or be less prepared for challenges. Put plainly, Berteau said, “it's complicated.” He hopes Lord will begin interacting with industry on this issue in ways similar to the current “listening tour” on changes to progress payments. 3. Better software development: It's become almost cliché that the department needs to do better at developing software, but in this case it's a cliché that experts, including Lord, agree with. The Defense Innovation Board, a group of tech experts from outside the department, is working on a series of studies on software, including one focused on how to drive agile development techniques inside the building. Lord said to expect that report before the end of March, adding: “I think that will be important in terms of capturing a road map forward on how to do this correctly.” 4. Increase use of OTAs: In 2018, Lord's office released a handbook on when and how to use other transaction authorities — legal standards designed to speed acquisition that critics say are underutilized by the department. Lord called it “sort of a warmup” for creating more useful handbooks for the acquisition community, but said that the goal for 2019 is to get people to correctly employ OTAs. “Usually they should be used when you don't have a clear requirement. So, true prototyping when you don't know what you're going to get,” Lord said. “Prototyping early on, probably before you get to the middle-tier acquisition.” 5. Greater use of prototyping: Speaking of which, Lord said the department has about 10 projects underway for rapid prototyping at the mid-tier level, with the goal of growing to about 50 in the next year. The goal is to take the systems into the field, test them out and then grow the next iteration of the capability based on what is learned. “We're taking systems that are commercially available and perhaps need a little modification, or defense systems that need a modicum of modification to make them appropriate for the war fighter,” Lord said. “That's one of the authorities we are very appreciative for, and we will continue to refine the policy. I signed out very broad policy on that this year. We'll write the detailed policy coming up early next year.” 6. Making the Selected Acquisition Reports public again: Until recently, the department publicly released annual Selected Acquisition Reports for each of the major defense programs. Those reports can inform the public of where programs stand and the costs associated. However, under the Trump administration, those reports have been largely classified as “For Official Use Only,” or FOUO, a higher level of security. Critics, including incoming House Armed Services Committee Chairman Adam Smith, D-Wash., have argued there is no need for those once-public reports to be listed as FOUO. It appears Lord is working to open those back up. “We're going to try to minimize the FOUO on that,” Lord said in response to a question about it. “There are certain information [issues] that we have to protect, but [we] understand the need, the requirement, and I will put our guidance to make everything open to the public to the degree we can.” https://www.defensenews.com/pentagon/2018/12/27/six-things-on-the-pentagons-2019-acquisition-reform-checklist/

• 

  31 juillet 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

  UK defense exports set new record in 2018

  By: Andrew Chuter LONDON — Sales of Typhoon jets to Qatar and F-35 related components to the U.S. were largely behind a record breaking year which saw British defense exports in 2018 reach £14 billion, according to new figures released July 30 by the Department for International Trade(DIT). Export sales rose by £5 billion compared with 2017, boosting the British into second place in terms of global defense exports and pushing Russia and France into third and fourth place, respectively, for the year. The DIT report illustrates how reliant Britain is on Middle East partners like Saudi Arabia and Qatar for its high performing exports business. The report shows that close to 80 percent of all British defense exports came from the region last year. Anti-arms campaigners in Britain are currently mounting a challenge against the legality of some previous defense exports to the Saudis. Over the last ten years, the Middle East, North America and Europe have provided the biggest markets for the British, in that order. The figures were provided by the DIT's defense and security arm, known as the Defence and Security Organisation (DSO). According to the DSO, the British took an estimated 19 percent share of the defense export market for 2018, compared with 14 percent by Russia and 9 percent by France. As is the case every year, the U.S. arms industry continued to dominate the world market, with DSO figures putting the Americans in control of 40 percent of a global export market, at $100 billion for 2018, according to the government department. The vast majority of British defense exports are from the air market sector. Around 96 percent of export sales last year were generated from defense aerospace, with the Typhoon sales to Qatar and an accompanying deal to purchase Brimstone missiles a major driver in Britain's good year. The other major factor is the ramp up in the supply of items for the F-35 production line. Britain is the biggest overseas partner on the F-35 build program with BAE Systems and Rolls-Royce among a number of important suppliers. This lack of diversification is a concern for London. France, for example, may not have done as well as the British last year overall, but a number of defense industry sectors contributed to what turned out to be a good performance. French exports rose to €9.1 billion, a 30 percent rise from 2017. It's biggest customers last year were Qatar, including Rafale fighter jets and NH-90 helicopters; Belgium, with Griffon and Jaguar armored vehicles; Saudi Arabia, including patrol vessels; and Spain, for NH-90 helicopters. “It is worth noting that the portfolios of major competitors to the UK, such as the USA and France, appear slightly less unbalanced than the UK's, and therefore, these supplier nations are less exposed to sector fluctuation,” noted the DIT report. The good news for the UK: this year should go some way to redressing the balance between the British export sectors. The major maritime success of the Type 26 anti-submarine frigate, selected by both Australia and Canada, should starting appearing in the export data for 2019. Security equipment exports also continued to grow last year, the DIT reported, rising 7.2 percent from 2017 and crossing the £5 billion barrier. Almost half the exports went to Europe, with the North American market accounting for 18 percent of the sales. Cyber accounted for roughly 40 percent of those exports. https://www.defensenews.com/global/europe/2019/07/30/uk-defense-exports-set-new-record-in-2018/