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5 février 2020 | International, Aérospatial

New weapons purchases suffer under India’s latest defense budget

By: Vivek Raghuvanshi

NEW DELHI — India's defense budget for 2020-2021 will be $73.65 billion, the country government announced Saturday, but officials and analysts are warning the amount is unlikely to meet new demands for weapons purchases and military modernization, as India is set to spend about 90 percent if its defense funds on existing obligations.

Of the total budget, $18.52 billion is for weapons purchases; $32.7 billion is for maintenance of the military's weapons inventory, pay and allowances, infrastructure, and recurring expenses; and $21.91 billion is for defense pensions.

“The capital budget leaves no room for any big-ticket weapons purchase, as over 90 percent of the allocation capital funds will [be spent] for past [defense] contracts' committed liabilities," a senior Ministry of Defence official told Defense News.

The limited procurement spending is expected to directly impact “Make in India" defense projects, a policy meant to boost the local economy under the ruling National Democratic Alliance government.

“This also [leaves] no room for any major weapons purchases from U.S. at least for one to two years,” the MoD official added.

India is slated to make a number of purchases through the U.S. Foreign Miltiary Sales program, including 22 MQ-9 Reaper (Predator B) drones for $2.6 billion; and additional six P-8I maritime surveillance aircraft for $1 billion; two Gulfstream 550 aircraft for intelligence, surveillance, target acquisition and reconnaissance for nearly $1 billion; and one unit of the National Advanced Surface-to-Air Missile System II for more than $1 billion.

During at least the last two years, the Indian military has complained about a lack of funds for resolving existing liabilities. Amit Cowshish, a former financial adviser for acquisitions at the MoD, said the military will likely continue to face the challenge of preventing defaults on contractual payments.

The senior MoD official told Defense News that due to the shortage of funds, at least a dozen pending defense contracts will experience delays. “The current $18.52 billion capital allocation is only [a] marginal increase from [the] previous year [capital] allocation of $18.02 billion [and] does not even adequately cover inflation costs.”

The Indian Air Force is to receive $6.76 billion from the 2020-2021 budget, a drop from the previous year's $7.01 billion. The money is expected to go toward payments for orders of Rafale fighters from France and an S-400 missile system from Russia.

The Indian Navy is to receive $4.56 billion, which is expected to help cover the cost of leasing a nuclear submarine and stealth frigates from Russia, as well as pay for warships from Indian companies. A Navy official said it is unlikely the service will be able to sign a contract for 24 MH-60R multirole helicopters for more than $2 billion from the U.S. next year.

The Indian Army is to receive $5.06 billion to pay cover previous orders of wheeled and ultralight artillery guns, T-90 tanks, and ammunition.

India's state-owned defense companies continue to receive 60 percent of defense-related business, with 30 percent going to overseas defense companies and 10 percent to domestic private defense firms.

Another MoD official said the armed forces plan to focus on industry-funded defense projects under the government's “Make-II” category, which allows private companies to participate in the prototype development of weapons and platforms with a focus on import substitution, for which no government funding will be provided.

https://www.defensenews.com/global/asia-pacific/2020/02/04/new-weapons-purchases-suffer-under-indias-latest-defense-budget

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  • Contract Awards by US Department of Defense - February 12, 2019

    13 février 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité, Autre défense

    Contract Awards by US Department of Defense - February 12, 2019

    AIR FORCE Tecolote Research Inc., El Segundo, California, has been awarded a $36,668,258 firm-fixed-price contract for Space and Missile Systems Center acquisition and financial support services. This contract provides the Remote Sensing Systems Directorate with a broad range of acquisition, strategic communication, and administrative capabilities to execute effective and responsive integrated program management of space-related research, development, production, sustainment, and lifecycle acquisition activities. Work will be performed in El Segundo, California, and is expected to be completed by Aug. 17, 2024. This award is the result of a competitive acquisition and six offers were received. Fiscal 2019 space procurement in the amount of $974,326; and research, development, test and evaluation funds in the amount of $5,137,759 are being obligated at the time of award. Space and Missile Systems Center Remote Sensing Systems Contracting Division, Los Angeles Air Force Base, California, is the contracting activity (FA8810-19-F-0002). Lockheed Martin Corp., Fort Worth, Texas, has been awarded a not-to-exceed $19,900,000 indefinite-delivery/indefinite-quantity contract for Advanced Turbine Technologies for Affordable Mission-Capability (ATTAM) Phase I. The mission of the ATTAM Phase I program is to develop, demonstrate and transition advanced turbine propulsion power and thermal technologies that provides improvement in affordable mission capability. Work will be performed in Fort Worth, Texas, and is expected to be completed by Feb. 12, 2027. This award is the result of a competitive acquisition and 54 offers were received. The first task order will be initially funded with fiscal 2018 research, development, test and evaluation (RDT&E) funds in the amount of $45,000; and fiscal 2019 RDT&E funds in the amount of $315,000 at the time award. 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Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity. 22nd Century Technologies Inc., Somerset, New Jersey, has been awarded a $8,344,625 firm-fixed-price contract to exercise Option III to support the 33rd Network Warfare Squadron (NWS) at Joint Base San Antonio, Texas, in conducting its mission of Defense Cyber Operations (DCO). The contractor will provide plans and implantation in executing the 33rd NWS managed DCO mission. Work will be performed on Joint Base San Antonio, Texas, and is expected to be completed Feb. 28, 2020. This contract is the result of a competitive acquisition and eight offers were received. Fiscal 2019 operations and maintenance funds in the amount of $8,344,625 will be obligated at the time of award. The 38th Cyberspace Engineering Installation Group, Tinker Air Force Base, Oklahoma, is the contracting activity (FA8773-15-C-0067). 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  • Australia commits to Triton in $5 billion deal

    28 juin 2018 | International, Aérospatial, C4ISR

    Australia commits to Triton in $5 billion deal

    By: Nigel Pittaway MELBOURNE, Australia — Prime Minister Malcolm Turnbull announced on June 26 that the Australian government will purchase six Northrop Grumman MQ-4C Triton unmanned surveillance aircraft. The initial investment in the Triton capability is AU$1.4 billion (U.S. $1.03 billion), which includes AU$200 million to enter into a cooperative development program with the U.S. Navy; and AU$364 million for major infrastructure works at two Royal Australian Air Force bases. The total cost of the deal, including whole of life sustainment costs, is estimated to be AU$6.9 billion Australian dollars (U.S. $5.1 billion). The first aircraft will be delivered in 2023 and the last in 2025. They will be based at RAAF Base Edinburgh in South Australia and at Tindal in the Northern Territory, but are also likely to be forward-deployed to other airfields around the continent, including a string of bare bases to the north and north-west. The announcement marks the Gate 2 milestone in the Australian Defence's Force's Air 7000 Phase 1B program, which seeks to acquire a high altitude, long endurance maritime surveillance platform to complement its eventual fleet of 12 Boeing P-8A Poseidon manned maritime patrol aircraft. Australia's Triton program earlier achieved Gate 1 approval in 2014, and the 2016 Defence White Paper affirmed the government's commitment to the acquisition of the capability, subject to the successful completion of the U.S. Navy's Triton development program. At that time the requirement was for seven Tritons , one less than the six announced yesterday, and was initially capped at AU$4 billion, although this did not include through-life sustainment costs. “The Triton will complement the surveillance role of the P-8A Poseidon aircraft through sustained operations at long ranges as well as being able to undertake a range of intelligence, surveillance and reconnaissance (ISR) tasks,” according to a joint statement by Prime Minister Turnbull, Minister for Defence Marise Payne and Minister for Defence Industry Christopher Pyne. “Together these aircraft will significantly enhance our anti-submarine warfare and maritime strike capability, as well as our search and rescue capability.” Minister Pyne said that the Triton will be responsible for surveillance of Australia's areas of maritime responsibility, which represents over 10 percent of the world's surface. “They will provide surveillance and reconnaissance across the Indian Ocean, the Pacific Ocean and the Southern Ocean as far as Antarctica,” he said. “Triton provides unprecedented endurance and 360-degree coverage through its unique sensor suite,” commented Doug Shaffer, Northrop Grumman's vice president of Triton programs. “Australia has one of the largest sea zones in the world over which it has rights to use marine resources, also known as an Economic Exclusion Zone. As a flexible platform, Triton can serve in missions as varied as maritime domain awareness, target acquisition, fisheries protection, oil field monitoring and humanitarian relief.” The Australian Defence Force estimates Triton is capable of establishing a ten-hour orbit in the Southern Ocean, south of Heard Island, or similar efforts to the north of Guam and to the East of Fiji in the Pacific Ocean, from bases around the country. Australia is interested in the multi-intelligence (MULTI-INT), also known as integration functional capability 4 version of the Triton. This features several enhancements over the baseline aircraft and includes a signals intelligence payload which, in U.S. Navy service, is intended to replace the Lockheed EP-3E Aries surveillance platform. The cooperative development program Australia has signed with the U.S. Navy is similar to the agreement it has with the Navy regarding P-8A spiral development and will seek to influence the further development of the MULTI-INT Triton to meet Australia's specific needs. Items of interest are understood to include the integration of a weather radar system, for prolonged operations in tropical conditions where daily thunderstorms are a fact of life, and a ground moving target indicator to facilitate overland ISR missions in addition to the blue water maritime surveillance role. “This cooperative program will strengthen our ability to develop advanced capability and conduct joint military operations,” Prime Minister Turnbull said. https://www.defensenews.com/global/asia-pacific/2018/06/27/australia-commits-to-triton-in-5-billion-deal/

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