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  • Slower-than-expected economic growth to help Canada's defence spending numbers

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

    Slower-than-expected economic growth to help Canada's defence spending numbers

    Lee Berthiaume OTTAWA -- The federal government is predicting Canadian defence spending will inch closer to its NATO promises in the coming years than originally expected -- though not because Ottawa is planning to send new money the military's way. All NATO members, including Canada, agreed in 2014 to work toward spending the equivalent of two per cent of their gross domestic products on defence within the next decade as the military alliance sought to share the burden of defending from new threats like Russia and China. Two years ago, when they unveiled their defence policy, the Liberals said the government would hit 1.4 per cent by 2024-25. But Defence Minister Harjit Sajjan this week said, without providing details, that defence spending would instead reach 1.48 per cent of GDP. An increase of that size could represent close to $2 billion more per year for the military. However, the Department of National Defence told The Canadian Press that there are no new investments on the horizon for the Canadian Armed Forces beyond what's already in the Liberals' policy. Instead, Defence Department spokesman Daniel Le Bouthiller attributed the change to slower-than-expected economic growth over the next few years and more spending on non-military specific activities like veterans' benefits and the Canadian Coast Guard. The government has included such activities in its calculations since 2017 to try to address complaints from the U.S. and other NATO allies that Canada was not investing enough in its military. NATO approved the change. "Approximately two-thirds of the increase from 1.40 to 1.48 per cent is due to increased (other government department) forecasts and one-third due to fluctuating GDP forecasts," Le Bouthillier said in an email. Canada currently spends about 1.31 per cent of GDP -- a common measurement of a country's economic output -- on defence and has no plan to reach NATO's two per cent benchmark, a fact that has made it a target for U.S. President Donald Trump. Trump labelled Canada "slightly delinquent" on defence spending during a meeting in London last week in which he publicly grilled Prime Minister Justin Trudeau about Canada's number before subsequently stepping up his calls for the government to meet the NATO target. "He's not paying two per cent and he should be paying two per cent," Trump said during a meeting with German Chancellor Angela Merkel on Dec. 4. "It's Canada. They have money and they should be paying two per cent." The Liberal government has in fact refused to say whether it believes in the two-per-cent target and has instead repeatedly pointed to Canada's contributions of forces and equipment to NATO missions in Latvia, Iraq and other places as a better measurement of its contributions to the military alliance. The spending target is an imperfect way of measuring how much individual countries are contributing, said Stefanie von Hlatky, an expert on NATO and the military at Queen's University in Kingston, Ont. But all allies are facing pressure to show Trump that they are stepping up on defence spending, she said, which is doubly true for Trudeau after his meeting with the U.S. president in London. "I think there's a little bit of pressure now to maybe update those numbers and probably some rejoicing that it looks better on paper," von Hlatky said. "If we're looking to impress Trump with these minor adjustments, maybe it's all for naught. But there is definitely added pressure with every NATO meeting and NATO summit. And we know it's going to come up as long as Trump is president." Conservative defence critic James Bezan accused the Liberal government of playing a numbers game to make Canada look better rather than investing in the Armed Forces. "It's a sad state of affairs for our military heroes when Justin Trudeau can only improve defence spending figures by engineering a made-in-Canada recession and playing a shell game with other departments' budgets to inflate the numbers," he said. This report by The Canadian Press was first published on Dec. 13, 2019. https://www.ctvnews.ca/politics/slower-than-expected-economic-growth-to-help-canada-s-defence-spending-numbers-1.4728602

  • US defense shares, government contractors fall after Trump efficiency picks
  • Contract Awards by US Department of Defense - November 27, 2019

    28 novembre 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contract Awards by US Department of Defense - November 27, 2019

    NAVY United Technologies Corp., Pratt & Whitney Military Engines, East Hartford, Connecticut, is awarded a $521,996,409 undefinitized contract modification (P00070) to a previously awarded cost-plus-incentive-fee, cost-plus-fixed-fee and fixed-price-incentive-firm-target contract (N00019-17-C-0010). This modification provides performance based logistics sustainment in support of the F-35 Lightning II F135 propulsion system for the Navy, Air Force, Marine Corps, non-Department of Defense (DoD) participants and foreign military sales (FMS) customers. Work will be performed in East Hartford, Connecticut (73%); Oklahoma City, Oklahoma (18%); Camari, Italy (3%); Eglin Air Force Base, Florida (2%); Edwards Air Force Base, California (1%); Hill Air Force Base, Utah (1%); Luke Air Force Base, Arizona (1%); and Marine Corps Air Station Beaufort, South Carolina (1%), and is expected to be completed in November 2020. Fiscal 2020 operation and maintenance (Air Force) funds for $72,261,440 will be obligated at time of award, all of which will expire at the end of the current fiscal year. This modification combines purchases for the Air Force ($179,272,654; 34%); Marine Corps ($134,605,633; 26%); Navy ($29,758,385; 6%); non-DoD participants ($124,483,008; 24%), and FMS customers ($53,876,729; 10%) under the FMS Program. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Kings Bay Support Services LLC, Alexandria, Virginia, is awarded a $20,049,858 indefinite-delivery/indefinite-quantity modification for the exercise of the option to extend services for base operating support services at Naval Submarine Base, Kings Bay, Georgia. The work to be performed provides for all labor, facilities management, supervision, tools, materials, equipment, incidental engineering, environmental services and transportation to effectively execute base operating support services. After award of this option, the total cumulative contract value will be $342,241,061. Work will be performed in Kings Bay, Georgia. This option period is from December 2019 to May 2020. No funds will be obligated at time of award. Fiscal 2020 operation and maintenance (Navy) contract funds for $16,928,444 for recurring work will be obligated on individual task orders issued during the option period. The Naval Facilities Engineering Command Southeast, Jacksonville, Florida, is the contracting activity (N69450-11-D-7578). ARMY Seaside Engineering & Surveying LLC,* Baker, Florida (W9126G-20-D-6003); and Lowe Engineers LLC,* Robert, Louisiana (W9126G-20-D-6004) will compete for each order of the $240,000,000 firm-fixed-price contract for professional land survey architect-engineer in support of the Southwestern Division Department of Homeland Security Border Infrastructure Program. Bids were solicited via the internet with 12 received. Work locations and funding will be determined with each order, with an estimated completion date of Nov. 26, 2024. U.S. Army Corps of Engineers, Little Rock, Arkansas, is the contracting activity. Lockheed Martin Corp., Orlando, Florida, was awarded a $134,707,194 modification (P00094) to contract W31P4Q-15-C-0102 for procurement of the Joint-Air-to-Ground Missiles. Work will be performed in Orlando, Florida, with an estimated completion date of Feb. 28, 2023. Fiscal 2019 procurement of ammunition, Army funds in the amount of $134,707,194 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Ames Construction Inc., Burnsville, Minnesota, was awarded a $58,784,850 firm-fixed-price contract for plant, labor, materials to construct a gated water control structure, dam walls, a vehicle service bridge, stilling basin, pre-formed scour hole, approach apron, a slope protection slab and approach walls. Bids were solicited via the internet with two received. Work will be performed in Fargo, North Dakota, with an estimated completion date of Oct. 16, 2024. Fiscal 2019 civil construction funds in the amount of $58,784,850 were obligated at the time of the award. U.S. Army Corps of Engineers is the contracting activity (W912ES-20-C-0001). Technica LLC,* Charleston, South Carolina, was awarded a $17,880,934 modification (0004BK) to contract W52P1J-12-G-0018 for logistics support services, maintenance, transportation, and supply support. Work will be performed in El Paso, Texas, with an estimated completion date of June 2, 2020. Fiscal 2020 overseas contingency operations transfer and operation and maintenance, Army funds in the amount of $10,477,200 were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. Lockheed Martin Corp., Orlando, Florida, was awarded a $7,563,160 modification (P00002) to contract W52P1J-19-F-0533 for Modernized Target Acquisition Designation Sight Pilot Night Vision Sensor Systems, subcomponent production and technical services for the Apache Attack Helicopter. Work locations and funding will be determined with each order, with an estimated completion date of Jan. 1, 2023. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. DEFENSE FINANCE AND ACCOUNTING SERVICE KPMG LLP, McLean, Virginia, is being awarded a labor-hour contract option with a maximum value of $41,643,963 for audit services of the Army general fund and working capital fund financial statements. Work will be performed in McLean, Virginia, with an expected completion date of Nov. 30, 2020. This contract is the result of a competitive acquisition for which one quote was received. The modification brings the total cumulative face value of the contract to $131,613,957 from $89,969,994. Fiscal 2020 Army operation and maintenance funds in the amount of $41,643,963 are being obligated at the time of the award. The Defense Finance and Accounting Service, Contract Services Directorate, Columbus, Ohio, is the contracting activity (HQ0423-17-F-0010). DEFENSE LOGISTICS AGENCY Apteryx Inc. Akron, Ohio, has been awarded a maximum $20,900,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for hospital equipment and accessories for the Defense Logistics Agency electronic catalog. This was a competitive acquisition with 101 responses received. This is a five-year contract with no option periods. Location of performance is Ohio, with a Nov. 26, 2024, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DH-20-D-0025). R.A. Miller Industries Inc.,** Grand Haven, Michigan, has been awarded a maximum $8,737,000 firm-fixed-price, indefinite-quantity contract for antennas and an antenna element. This was a competitive acquisition with one offer received. This is a three-year base contract with two one-year option periods. Location of performance is Michigan, with a Nov. 26, 2022, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio (SPE7MX20D0008). LVI, Pendergrass, Georgia, has been awarded an $8,696,995 modification (P00036) exercising the fourth one-year option of a three-year base contract (SPM1C1-14-C-0002) with four, one-year option periods for warehousing, storage, logistics and distribution functions. This is a fixed-price with economic-price-adjustment contract. Location of performance is Georgia, with a Dec. 1, 2020, performance completion date. Using customers are Army and Defense Logistics Agency. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. *Small Business **Woman-Owned Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2028834/source/GovDelivery/

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