Nouvelles

By: Joe Gould WASHINGTON ― President Joe Biden's nominee for deputy defense secretary, Kathleen Hicks, said she is “concerned” about consolidation in the defense industrial base, and that competition is needed to maintain an edge over China and Russia. Hicks, whose office would review deals that involve national security issues if she is confirmed by the Senate, told lawmakers Tuesday that she would work with them to ensure a healthy defense industrial base. The comments came amid market expectations that defense deal-making could take off in 2021. “Extreme consolidation does create challenges for innovation,” Hicks told the Senate Armed Services Committee. “We need to have a lot of different good ideas out there. That's our competitive advantage over authoritarian states like China, and Russia. And so if we move all competition out, obviously, that's a challenge for the taxpayer. But it's also a challenge in terms of the innovation piece.” As the space sector and technological developments drive growth in the aerospace and defense sector and the pandemic weakens commercial aviation firms, companies are “likely to pursue opportunities for consolidation,” the consulting firm Deloitte said in a recent report. Firms could seek new merger and acquisition opportunities, the report said, to “capture more value, drive cost-competitiveness, or acquire targeted niche capabilities and emerging technologies” such as “advanced air mobility, hypersonics, electric propulsion, and hydrogen-powered aircraft.” Recent years have seen a number of major deals, including the combination of Harris and L3 Technologies, United Technologies Corp. and Raytheon; BAE Systems and Collins Aerospace, and General Dynamics and CSRA. Lockheed Martin's $4.4 billion acquisition of Aerojet Rocketdyne, announced in December, has yet to clear regulators. The Federal Trade Commission and the Justice Department also review mergers and acquisition activity in the defense sector. At Tuesday's hearing, Connecticut Democratic Sen. Richard Blumenthal, whose state hosts General Dynamics Electric Boat, told Hicks a drop in the number of submarine suppliers from 17,000 to 5,000 over recent decades suggested broader problems for the defense industrial base, problems that he said were, “extremely alarming to me.” Blumenthal indicated Hicks had committed prior to the hearing to aid small suppliers struggling with the pandemic's economic fallout and to develop new small and medium suppliers. (This was one focus of DoD's acquisition and sustainment office under the previous administration.) “I'm hoping you will focus on the supply chain that is vitally important to suppliers like Electric Boat or Raytheon or any of our major sources of supply,” said Blumenthal, who has served as the top Democrat on SASC's Seapower Subcommittee. A broader theme for the hearing was how Hicks, whose job involves supervising the defense budget, would invest in forward-leaning technologies under a flat budget and divest from existing weapons platforms. Meanwhile, lawmakers grilled Hicks about whether she supported spending on nuclear modernization, shipbuilding and other programs with connections to lawmakers' home states. Acknowledging the political and budget tensions, Hicks said she wants to link future budgetary decisions with concepts for operations, to buy “capabilities that actually line up to theories of victory for how we are trying to pace challenges from China and Russia.” Other lawmakers told Hicks they wanted an easier paths for smaller, cutting edge firms from outside the Beltway to do business with the Pentagon and for them to scale production of their products, beyond the experimentation phase. “We've had testimony before this committee that many smaller companies, particularly in Silicon Valley, and in the technology field generally have given up on the Pentagon, it's too complicated is too lengthy is too expensive, even to fill out the forms,” said Sen. Angus King, I-Maine. For her part, Hicks said Tuesday she would “increase the speed and scale of innovation in our force,” and she would work to understand how alternative acquisitions methods are servings smaller non-traditional suppliers. She affirmed that those firms cannot survive on research and development funding alone. “I do think a sustain level of [research and development] investment is vital, but we actually have to field capabilities, and that's a place where DoD has really struggled,” she said, adding that exercises and experiments help demonstrate the value of new technologies. “When we can demonstrate value, then we're in a much better position to have a dialogue with Congress and with industry about where that where those capabilities can take us.” https://www.defensenews.com/congress/2021/02/02/to-keep-up-with-rivals-dod-nominee-will-weigh-consolidation-vs-innovation/

By Lee Berthiaume The Canadian Press Posted February 2, 2021 10:40 am OTTAWA – The Department of National Defence says the first of 15 new warships being built for the Royal Canadian Navy will be delivered years later than expected as officials working on the $60-billion project grapple with unexpected design and construction challenges. The delay means Canada will need to spend more on its 12 aging Halifax-class frigates to keep them floating longer, and is sure to set off a fresh wave of debate and lobbying around what amounts to the largest military procurement in Canadian history. Yet the Defence Department's head of procurement insists the project remains on budget thanks to built-in contingencies, while navy commander Vice-Admiral Craig Baines expressed confidence that his force would not be unduly affected by the delay. That is despite a recent report that outlined concerns about the advanced age of the frigates, which was making it more difficult to find spare parts and conduct other maintenance on the 1980s Halifax-class warships. “When you put ships in saltwater over time, there's going to be an effect,” Baines told The Canadian Press in an interview. “But right now, based on all our estimates on the conditions of the ships, we're very comfortable that we'll be able to transition with this plan.” The delay is nonetheless the latest setback for the new fleet of warships, which are known in military circles as Canadian “surface combatants” and are expected to serve as the Navy's backbone for the better part of the century. The warship project was launched in earnest nearly a decade ago when Irving Shipbuilding in Halifax was selected in October 2011 to build the fleet, with the total cost estimated at around $26 billion and the first ship to be delivered in the mid-2020s. That vague schedule remained largely unchanged, at least on paper, even as the estimated price tag ballooned to $60 billion and Ottawa ordered several smaller ships so Irving would have work until the surface combatants were ready for construction. But Troy Crosby, the Defence Department's assistant deputy minister of materiel, revealed Monday that the first ship is now scheduled for delivery in the early 2030s as officials grapple with the final design and face longer-than-expected construction times. The new warships are based on the Type-26 frigate, which is also being built by the United Kingdom and Australia, but Canadian officials have been making numerous changes to the design to meet Canada's unique military – and industrial – requirements. At the same time, Crosby said the British and Australian experiences have shown that construction of the new vessels will take 7 1/2 years, rather than the original estimate of five years. “So when we look at the overall timeline, we're looking at slightly longer timelines,” he said. “We're looking at the first ship being delivered to us in the early 2030s. ... In this case, we're really more specifically looking at the 2030-31 timeframe.” The schedule slippage comes as the parliamentary budget officer is preparing to release a highly anticipated update on the estimated cost of the warship project. Defence officials have quietly expressed concern the review will show a sizeable increase. Crosby, however, was adamant that the project remains within the $60-billion budget established by the Liberal government in 2017. “The project had originally included a significant amount of contingency that had been put there to address these unknowns,” he said. “That contingency is now being applied, and that's exactly what it's there for. So with that update done, we're still confident at this point that it's going to fit within the budget.” He also said Ottawa will not pony up more money for Irving to retain its workforce as the current plan is to start cutting steel on the first new warship as scheduled in 2023-24, while work on the final design continues. A similar approach is being taken with the Navy's two new supply ships, which are being built in Vancouver. Irving is currently working on a fleet of much smaller Arctic patrol ships for the navy. It originally planned to build five, before the government ordered a sixth in November 2018 to keep Irving's workers busy until the new warships were ready for construction. The government then committed $1.5 billion for two more Arctic patrol ships in May 2019, this time for the Canadian Coast Guard, for the same reason. The delay does mean the navy will need to continue operating its Halifax-class frigates longer, which means investing more money into the ships and managing how and when they are used. Defence analyst David Perry of the Canadian Global Affairs Institute expressed concern about the new delay and what it means for the frigates, some of which are dealing with corrosion and metal fatigue that could limit how long they can remain in service. An internal Defence Department report published last year echoed some of those concerns, saying the navy's maintenance facilities were having an increasingly tough time repairing the frigates thanks in part to a lack of spare parts and the age of the fleet. And while Crosby said the government is working with British and Australian officials as well as industries to find ways to save time, Perry said the warship project has a long history of delays and cost overruns. “At this point in time, this project hasn't met a single one of its major milestones,” Perry said. “So 2030-31 is now the no-earlier-than-that-date for me.” Ottawa has rebuffed repeated calls to scrap its plan to build the ships in Canada, which advocates say could save the country tens of billions of dollars. https://globalnews.ca/news/7614144/national-defence-60b-warship-project/

By: Joe Gould WASHINGTON ― The health of America's defense industrial base ranks a middling “C” due to growing cyber vulnerabilities, a poor ability to surge production in a crisis, and political obstacles for defense budgeting, according to a lead defense trade group's new study. According to the National Defense Industrial Association's second annual “Vital Signs” report, the defense industrial base entered the COVID-19 pandemic in a weakened state despite healthier marks for competition, profitability and demand. The report, released Tuesday, graded eight performance areas from 0 to 100 for an average score of 74 for the year 2020. Government data firm Govini co-produced the data-driven report, which used the Pentagon's 2018 assessment of the defense industrial base as a jumping off point. “The defense industrial base is facing multiple headwinds: industrial security threats, flat future defense budgets, a shortage of skilled, cleared workers and decreased investments in the sciences that fuel U.S. innovation,” NDIA's chief executive, Hawk Carlisle, said in a statement. “Add to these the increased regulatory burdens and barriers for new entrants, which continue to shrink both the number of companies that participate in the DIB and the number of new companies entering the defense marketplace.” He added that the report, which makes no recommendations, ought to drive discussions as the Pentagon ramps up for competition with China and Russia. Though the study predates both COVID-19 and the revelation that elite cyber spies have spent months secretly exploiting SolarWinds' software to peer into computer networks, it raised alarms over industrial security. As data breaches and cybersecurity vulnerabilities both surged, industrial security overall showed “clear and continued deterioration,” ranking the lowest of all with a 56. The industrial base's ability to meet surge demand during a crisis received a failing grade of 66. Companies NDIA surveyed said that in the first 30 days, the industrial base could ramp up quickly but the rate of progress would slow soon thereafter; more than a 100 percent increase would take 180 days. More than half of firms said the availability of skilled labor would be a factor in increasing defense production, and 16.5 percent said a gap in U.S.-based human capital was the most vulnerable part of their supply chain ― in part fueled by a security clearance backlog. The size of the defense industry workforce fell to about 1.1 million people from its mid-1980s peak of 3.2 million, the report said. An analysis of public opinion, congressional action and regulatory action downgraded the “political and regulatory” outlook by 10 points since 2018 ― even prior to the pandemic and a related emphasis on domestic spending. A key factor was a new Cybersecurity Maturity Model Certification framework and its “additional regulatory burdens for all defense contractors,” the report said. Also, public opinion in favor of defense spending saw its largest decline since the Reagan-era defense buildup of the 1980s: A Gallup poll found that 17 percent of respondents felt the United States is spending too little on national defense and military purposes, down from 25 percent in 2019 and 33 percent in 2018. Industry can be pleased the “Demand” category jumped 16 points, corresponding with an increase in contract obligations issued by the Department of Defense. DoD contract obligations grew from $329 billion in fiscal 2017 to $394 billion in fiscal 2020, marking about a 20 percent increase. Foreign military sales also grew by nearly 20 percent over the same time period. Among all categories, major defense platforms ― aircraft, naval vessels and land vehicles ― were awarded the largest share of total contract obligation value, but contract obligation value for electronics and communication services grew 89 percent, leading all service categories. https://www.defensenews.com/2021/02/02/c-grade-for-us-defense-industrys-health-warns-trade-group-report

By DAVE RESS Huntington Ingalls Industries will provide maintenance, training and planning support for aircraft carriers over the next five years under a new contract worth up to $175 million. The contract covers engineering services, maintenance and operator training as well as technical and repair services. The focus is on continuing maintenance of the carriers' shipboard elevators and cargo-handling equipment, as well as on planning for the overhaul, modernization and repair of these systems. The work, contracted by Naval Sea Systems Command, will be performed onboard U.S. naval aircraft carriers in Norfolk, San Diego, Washington State and Japan. The elevators on the new USS Gerald R. Ford-class carriers built at HII's Newport News Shipbuilding yard represent a major redesign, using electric motor systems to replace hydraulic mechanisms that can leak flammable fluids in areas where bombs and other munitions are prepared. Last year, a team of Newport News Shipbuilding engineers and shipbuilders worked up a new design for the rails on which Ford-class carrier weapons elevators travel. The adjustable bedplate, deemed a “total rethinking of the entire stator installation process,” turned a 56-step installation process into a 16-step effort, eliminating 95% of the welding and 50% of the rigging. That simplifies the work of aligning the rails -- a task which much meet tolerances of a sixteenth of an inch or less over distances equivalent to several stories of a building. Those alignments are a key issue for certifying the 11 elevators on the Ford, work set for completion this spring. Separately, the Military Sealift Command awarded East Coast Repair and Fabrication a $12.1 million contract for repairs and maintenace work on the USNS Kanawaha to be done at East Coast's new Newport News facility. Kanawaha is a fleet oiler, designed to supply fuel to Navy ships at sea. It has been in service since 1991 and is assigned to the Atlantic Fleet. The work includes some structural and electrical work, and the contract includes options which if exercised would increase its value to $13.6 million. The work is expected to be completed by April 19. Dave Ress, 757-247-4535, dress@dailypress.com https://www.dailypress.com/business/shipyards/dp-nw-hii-navy-contract-20210202-m4frhwji2bba3hdwqh5jb2ubay-story.html

AIR FORCE ViaSat Inc., Carlsbad, California, has been awarded a $50,800,000 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract for development on prototype space systems. The contractor will provide studies, design, manufacturing, integration, performance qualification, network space segment elements, launch, flight and demonstration of prototype space systems. This also includes the development, integration and demonstration with ground terminals in conjunction with the government ground segment to reduce risk and assess performance and functionality for future protected service. Work will be performed in Carlsbad, California, and is expected to be completed May 2, 2028. This award is the result of a competitive acquisition and one offer was received. Fiscal 2021 research, development, test and evaluation funds in the amount of $754,337 will be obligated when the first task order is awarded. Air Force Research Laboratory, Kirtland Air Force Base, New Mexico, is the contracting activity (FA9453-21-D-0029). NAVY ACTS-Meltech JV1 LLC,* Virginia Beach, Virginia (N00178-21-D-4403); Athena Construction Group Inc.,* Triangle, Virginia (N00178-21-D-4404); Cremer Global Services Inc.,* Melbourne, Florida (N00178-21-D-4405); Encon Desbuild JV2 LLC,* Bladensburg, Maryland (N00178-21-D-4406); HSU EGI JV LLC,* Gaithersburg, Maryland (N00178-21-D-4407); Matos Builders LLC,* Baltimore, Maryland (N00178-21-D-4408); New Dominion Construction LLC,* Dumfries, Virginia (N00178-21-D-4409); Signature Renovations LLC,* Capitol Heights, Maryland (N00178-21-D-4410); and Trinity USA Contracting Inc.,* White Stone, Virginia (N00178-21-D-4411), are awarded a combined $30,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for facility repairs and renovations in multiple buildings, trailers and labs. This contract was competitively awarded among HUBZone small businesses. It provides standard maintenance, sustainment, repair and minor construction as well as field surveying of sites, mapping of new site conditions, soil boring sampling, sampling and testing of potential existing hazardous construction materials, performing and providing engineering analysis and evaluations for purposes of structural and electrical capacities and providing energy computations for infrastructure solutions. Operation and execution are primarily focused in repairing, upgrading and nonstructural construction in accordance with and not exceeding Category II of the Naval Facilities Engineering Command Engineering & Construction Bulletin Issue No.2006-04. Each awardee will be awarded $500 (minimum contract guarantee per awardee) at contract award. These contracts do not include options and consist of a cumulative value of $30,000,000 over a five-year period to the nine vendors combined. Work will be performed in Dahlgren, Virginia (85%); Wallops Island, Virginia (5%); Virginia Beach, Virginia (5%); and Washington, D.C. (5%), and is expected to be completed by February 2026. Fiscal 2021 sustainment, restoration and modernization funds in the amount of $4,500 will be obligated at the time of award and will expire at the end of the current fiscal year. All other funding will be made available at the delivery order level as contracting actions occur. This contract was competitively procured via the beta.SAM.gov website, with 11 offers received. The Naval Surface Warfare Center, Dahlgren Division, Dahlgren, Virginia, is the contracting activity. Huntington Ingalls Industries, Newport News Shipbuilding division, Newport News, Virginia, is awarded a $12,500,000 cost-plus-fixed-fee modification to previously awarded contract N00024-16-C-4316 to continue performance of the repair, maintenance and upgrade efforts on the USS Helena (SSN 725) Dry-Docking Selected Restricted Availability. Work will be performed in Newport News, Virginia, and is expected to be completed by April 2021. Fiscal 2021 operation and maintenance (Navy) funding in the amount of $12,500,000 will be obligated at time of award and will expire at the end of the current fiscal year. The Supervisor of Shipbuilding, Conversion and Repair, Newport News, Virginia, is the contracting activity. DEFENSE LOGISTICS AGENCY Federal Prison Industries Inc.,** doing business as UNICOR, Washington, D.C., has been awarded a maximum $21,978,000 modification (P00009) exercising the first one-year option period of a one-year base contract (SPE1C1-20-D-F057) with four one-year option periods for various types of coats. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are Illinois, Texas, North Carolina, and Washington, D.C., with a Feb. 5, 2022, ordering period end date. Using military services are Army and Air Force. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency, Troop Support, Philadelphia, Pennsylvania. Delavan Inc., West Des Moines, Iowa, doing business as Collins Aerospace, has been awarded a maximum $9,999,999 firm-fixed-price, indefinite-quantity contract for T700 aircraft engine fuel injector assemblies. This was a competitive acquisition with one response received. This is a five-year contract with no option periods. Location of performance is Iowa, with a Feb. 2, 2026, performance completion date. Using military services are Army, Navy and Air Force. Type of appropriation is fiscal 2021 through 2026 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Richmond, Virginia (SPE4A721D0099). ARMY Weeks Marine Inc., Covington, Louisiana, was awarded an $11,791,200 modification (P00001) to contract W912P8-20-C-0059 for maintenance dredging of the Southwest Pass of the Mississippi River from Baton Rouge to the Gulf of Mexico. Work will be performed in Venice, Louisiana, with an estimated completion date of June 30, 2021. Fiscal 2020 civil construction funds; and fiscal 2020 non-federal sponsor, state of Louisiana funds in the amount of $11,791,200 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity. *Small business **Mandatory source https://www.defense.gov/Newsroom/Contracts/Contract/Article/2490862/source/GovDelivery/

By: Aaron Mehta WASHINGTON — Following a smooth confirmation hearing, it appears Kathleen Hicks is headed to the Pentagon. As had been expected, Hicks, the nominee to be deputy secretary of defense for Defense Secretary Lloyd Austin, received little in the way of pushback from senators. A significant number of them — including outgoing Senate Armed Service Committee Chairman Jim Inhofe, R-Okla., and his successor, Sen. Jack Reed, D-R.I. — indicated they would support her nomination out of the committee. The hearing, which lasted more than three hours, gave insight into how Hicks would approach a number of key issues for the Defense Department if she arrives in office. Hicks is open to changing budget traditions to drive joint activity. It is commonly accepted in defense circles that the Pentagon's budget will be flat at best, if not declining, in the coming years. That led to a number of questions from senators about how to drive reforms and find savings for the department. Hicks said the incentive structure must change, particularly for general officer- and senior civilian-level hires, in order to focus on joint impacts. A service that has “given up the capacity or the capability often believes that they will lose out overall, and the incentive structure is built around budget share. We should make clear always from a leadership perspective that the incentive is about serving the joint war fighter,” she said. “So the incentives start around promotion, but they also include how we keep the money, if you will, oriented towards services who are putting forward good ideas, even if those good ideas seem to go against a vested interest.” Hicks later committed to looking at “pass through” funding included in the Air Force budget each year. That money, which can account for as much as 20 percent of the service's budget request, goes to other government organizations and has for years been a thorn in the side of Air Force advocates, who argue it leads to the service having a smaller budget than the Army and Navy. The Navy's shipbuilding plan may get changed. The Trump administration delivered a long-awaited shipbuilding plan to Congress toward the end of 2020, one that was met with a skeptical eye from outside analysts who questioned some of the baked-in assumptions. Hicks, it seems, falls into that camp, although she said the broad structure is likely correct. “There's some really interesting operational themes that I'm attracted to: There's a focus on increasing use of autonomy, there's a focus on dispersal of forces and there's a focus on growing the number of small surface combatants relative to today,” Hicks said. “But there are some things in that unclassified report, as I mentioned to you, that I saw as flags. There's an indication that the information in there would require further analysis to validate the numbers.” Hicks said she would hope to work quickly once Navy leadership is in place on developing the Biden administration's plan. Focusing just on allied defense spending misses the point. President Donald Trump often focused his personal ire on allied nations who were not spending as much on defense as he would like. While NATO, with its pledge for countries to spend 2 percent of their respective gross domestic product on defense, was an early and common target, Japan and South Korea also drew his ire over the last four years. Hicks said she watched that with “concern,” noting that the focus purely on spending would impact how other nations work with the U.S. She believes the Biden administration will work to smooth over tensions around burden-sharing. “We should always be focused on burden-sharing, ensuring that allies fulfill their commitments. But when it becomes that tactical issue that overrides the strategic value of the alliances, alliances that the Chinese and Russians could only hope to match ... if we get to that point, we have become astrategic,” Hicks said. “We need to make sure that we're taking a strategic approach to what commitment means,” she added. “I think we need to make sure that allies are as into the security relationship as we are. Sometimes it's through spending. Sometimes it's through defense spending. And sometimes that commitment is expressed in other ways, and I think we should be strategic about how we consider those commitments.” Because of Austin's recusals, she'll be the point person on any Raytheon projects. Prior to assuming office, Austin served on the board of defense giant Raytheon Technologies. During his confirmation process, he pledged to recuse himself, if at all possible, from any decisions related to Raytheon while serving as defense secretary. That means Hicks will be the highest-ranking voice on programmatic decisions regarding two key nuclear capabilities: the replacement program for America's intercontinental ballistic missiles known as the Ground Based Strategic Deterrent, or GBSD; and the Long Range Standoff Weapon, or LRSO, a nuclear cruise missile. In her written answers to members, Hicks noted she would likely end up running programmatic decisions on those systems as well as “other timely missile defense issues.” Hicks backs nuclear modernization, but won't comment on specific projects. Like Austin did during his confirmation hearing, Hicks was unequivocal in her support for broad nuclear modernization. But just like Austin, she stopped short of pledging specifically to uphold the entirety of the current nuclear modernization strategy, notable at a time when both the LRSO and GBSD programs find themselves as targets from the progressive wing of the Democratic Party, as well as from the nonproliferation community. She deferred on technical questions about GBSD and its timeline, noting she doesn't currently have access to that data. “My view is that the triad has served us very well, it has created stability and it has value,” Hicks said. However, she stressed that major decisions on nuclear policy, including about a potential “no first use” declaration, would come from above her. “I think our decisions on nuclear weapons should be driven foremost by strategy,” not money, she added. Hicks said it is her “understanding” that a Nuclear Posture Review will be conducted by the Pentagon; the assumption among experts is that the NPR under a Biden administration will come to some different conclusions than that of the Trump administration, whose document called for the creation of two new low-yield nuclear warheads. The transition fight will impact the fiscal 2022 budget. Before being announced as the deputy defense secretary nominee, Hicks was the leader on President Joe Biden's Pentagon landing team. While transitions between administrations are usually smooth, the unprecedented situation of Trump's refusal to accept his election loss bled over into the transition effort at the Department of Defense. By mid-December, officials on the Biden team were publicly complaining about political appointees at teh DoD blocking their access. Pentagon officials canceled a number of planned meetings but insisted there was no issue. Asked during Tuesday's hearing about the impact those delays may have going forward, Hicks stressed the issue was “really around a handful of folks who made things difficult,” but said there would be a hangover effect for the FY22 budget. “I think the biggest challenge that I will face, if confirmed, because of this is around budget transparency,” she said, indicating that the transition team was unable to look at what the Trump administration was doing with the FY22 budget request until late in January. “Typically that information is shared with the transition team because the administration will owe to Congress a president's budget submission in the spring. So the inability to look at that information ... I think it will cause some delay in the timeline by which we can give budget quality information back to Congress. So that would be the area [where] I would ask for a little relief or understanding.” https://www.defensenews.com/pentagon/2021/02/02/how-kathleen-hicks-will-approach-nukes-shipbuilding-and-the-budget/

By: Vivek Raghuvanshi NEW DELHI — India on Monday allocated $18.48 billion for weapons procurement in its 2021-2022 defense budget amid an ongoing military standoff with China and financial stress on the national economy due to the coronavirus pandemic. Excluding pensions, the new defense budget totals $49.6 billion, an increase of more than 3 percent from the previous year's $47.98 billion. New capital expenditure of $18.48 billion meant for arms procurement witnessed an increase of about 16 percent from the previous year's $15.91 billion. This is the highest-ever increase in capital outlay for defense in the last 15 years, according to Indian Defence Minister Rajnath Singh. An additional $2.84 billion was spent on emergency arms purchases in the summer of 2020 to deal with the ongoing confrontation with China. The budget's revenue expenditure meant for maintenance of existing weapons, pay and allowances, and recurring expenses is set at $29.02 billion, compared to $28.75 billion in the previous defense budget. Officials in India point to the COVID-19 pandemic as disrupting the economy and thus affecting the government's income and driving spending decisions. Consequently, the defense budget might not be as high as it would've been were there not a pandemic, said Amit Cowshish, a former financial adviser for acquisition at the Ministry of Defence. Cowshish noted that the funds may be inadequate for all the planned acquisitions from abroad and at home to be signed during the upcoming financial year, which begins April 1. Capital expenditure is essentially defense funding meant for fresh arms procurement and existing liabilities from previously conducted defense contracts. Revenue expenditure is defense spending meant for the pay and allowances of military personnel as well as the maintenance of weapons and other existing inventory items. The Army will receive $4.9 billion in capital expenditure, which is an increase of 8.17 percent from the previous year's $4.53 billion. “The service could buy additional military vehicles and upgrade its drones fleet,” a senior Army official said. The service's revenue expenditure is set at $20.37 billion, compared to $20.11 billion in the previous budget. The Navy will receive $4.55 billion in capital expenditure, which is an increase of nearly 22 percent from previous year's $3.73 billion. This could pave the way for the service to buy 10 tactical MQ-9 Reaper drones from General Atomics through the U.S. Foreign Military Sales program, an Indian Navy official said. The revenue expenditure for the Navy is $3.19 billion, which is meant for the maintenance of warships and submarines, compared to $3.13 billion in the previous budget. The Air Force will receive $7.2 billion in capital expenditure, which is a hike of 19 percent from the previous year's $6.05 billion. According to a service official, this will go toward a new contract for 83 homemade LCA MK1A Tejas light combat aircraft, an existing commitment to pay for 36 Rafale fighters from France and five units of S-400 missile defense systems from Russia, among other efforts. The Air Force's revenue expenditure is $4.19 billion, compared to $4.1 billion in the previous budget. About $1.55 billion in capital expenditure will go toward the state-owned Defence Research and Development Organisation for new projects, compared to $1.47 billion in the previous budget. DRDO has also been given a revenue expenditure totaling $1.24 billion, compared to $1.2 billion last year. This year, existing liabilities could eat up to 90 percent of the new capital expenditure, which will impact several new weapons procurement efforts, an MoD official said. But if that high percentage is accurate, according to Cowshish, there must be a lot of equipment already on contract. The military will have to make do with whatever amount is left over for acquiring new systems, he noted. “Capability-building and self-reliance ... are long-term projects, which are not dependent entirely on the budgetary allocation in a particular year. Hopefully things will improve in the future.” https://www.defensenews.com/global/asia-pacific/2021/02/02/india-releases-details-of-new-defense-budget/

February 1, 2021 - announces the signing of three significant contracts valued at over $100 million USD, in which it will supply loitering munitions systems to several countries. The contracts include winning an international tender for the sale of the multi-purpose ROTEM system to a foreign country, sale of the naval version of the HAROP system to the navy of a country in Asia and sale of the ground version of the HAROP system to another customer in Asia. Boaz Levy, IAI's President and CEO, said: “IAI is a global pioneer in developing the operational concept of a loitering munitions systems, which has ripened to a family of unique and accurate attack systems. These systems, which have added impressive achievements to the operational capability of fighting forces around the globe, constitute central and decisive attack components for advanced battlefields of the future. These contracts are further proof of the importance and confidence modern armies place in accurate munitions systems as part of their arsenal, and may be harbingers of additional business activity in this field. IAI will continue to develop and improve a range of strike systems in order to give its clients around the world a precise operational solution.” The Maritime HAROP system provides an operational solution for a range of vessels, from off-shore vessels to fighting frigates in the naval theater. In a complex naval theater, the HAROP system gives mission commanders in a fleet of ships the capability to independently and organically collect intelligence, assess targets and strike. The intelligence gathered by the HAROP is directly integrated in the vessel's control room and allows for quick, accurate and lethal decision-making. Use of the HAROP on naval platforms is an operational alternative and complementary element to using sea-sea missiles, with a wide range of uses and with optimal cost-efficiency for the navy. The maritime and land combat-proven HAROP provides an operational solution for a range of low and high-intensity conflict scenarios and for anti-terrorism activity. The HAROP is equipped with day/night cameras and has the ability to search, find and attack with maximum precision both static and moving targets, on land or at sea and at a long-range. A strike can take place from any direction and at any angle of attack. ROTEM is the first Vertical Take-Off & Landing (VTOL) Tactical Loitering Munition combat-proven and used in operations by several of the world's militaries as a small loitering device based on a drone platform and is a power multiplier for tactical forces in a range of fighting scenarios, including security operations and maneuvers. The system provides a reconnaissance, observation and attack envelope with maximum autonomous performance, integrating a simple and intuitive operation interface that can be used by a single fighter from a touchscreen tablet. The ROTEM VTOL Tactical Loitering Munition carries day/night cameras and a warhead weighing up to one kilogram and is optimally designed to carry out combined missions of intelligence gathering and attack. The system incorporates a unique safety mechanism that enables its safe return to the fighter on the ground if an attack was not carried out. The ROTEM system has proven its operational effectiveness for precise, surgical strikes against a range of different targets. The loitering munitions family developed by IAI includes the Harpy-NG – a third generation of the system homing against radiating targets, the HAROP, a second-generation of a precision electro-optical attack system, the Mini-Harpy, dual (Electro-optical day&night + Anti-Radiation seeker) tactical advanced munitions system and the tactical loitering Green-Dragon system, as well as the ROTEM VTOL Tactical Loitering Munition. IAI is a focal point of national and global technological know-how in the field of attack systems, air defense, radars, satellites, remotely operated aircraft, civilian aviation and cyber. View source version on IAI: https://www.iai.co.il/iai-to-provide-loitering-munitions-to-asian-countries-deals-worth-over-100-million-usd

MCLEAN, Virginia – The U.S. Navy selected BAE Systems for a five-year $65.7 million single-award indefinite delivery, indefinite quantity contract for air traffic control (ATC) platform sustainment and engineering services, the company said in a Feb. 1 release. BAE Systems will continue to use its engineering, technical, and operational expertise to develop, produce, equip, test, evaluate, sustain, and update key expeditionary ATC aviation systems for the Naval Air Warfare Center Aircraft Division's Webster Outlying Field. “With this win, BAE Systems will provide expeditionary forces with the capability to quickly establish an airfield with the radar and communications systems to safely recover and launch aircraft,” said Lisa Hand, vice president and general manager of BAE Systems' Integrated Defense Solutions business. “We serve as the automation expert and technical coordinator, responsible for development and improvement of real-time ATC computer systems. Our radar technicians deploy around the world to support the warfighter; their work is resulting in quicker turnover to the end user, improved hardware reliability, and more accurate installation and precision in the field.” This new contract continues BAE Systems' more than a decade of supporting critical work on key systems, including the Standard Terminal Automation Replacement System (STARS); Air Traffic Navigation, Integration, and Coordination System (ATNAVICS); Airfield Mobile Tactical Air Navigation System (AMTAC); and ATNAVICS Data Link System (ADLS). Under the contract, the company will develop and maintain operational software and supporting test beds, field change programs, and supplies for ATC systems. These systems are integral ATC tools that enhance platform flight safety, especially when end users are operating in new or rough terrain airfields with no existing military base. https://seapowermagazine.org/bae-systems-to-sustain-air-traffic-control-systems-under-65-7m-navy-contract