DTN News: U.S. Department of Defense Contracts Dated April 7, 2010
Source: U.S. DoD issued April 7, 2010
(NSI News Source Info) WASHINGTON - April 8, 2010: U.S. Department of Defense, Office of the Assistant Secretary of Defense (Public Affairs) Contracts issued April 7, 2010 are undermentioned;<>CONTRACTS
NAVY~Sherlock, Smith & Adams, Montgomery, Ala., is being awarded a maximum $50,000,000 firm-fixed price, indefinite-delivery/indefinite-quantity architect-engineering contract for various medical and dental facility projects at various locations in the Naval Facilities Engineering Command (NAVFAC) Pacific area of responsibility (AOR). The work to be performed provides for design and engineering services for the preparation of plans and specifications, cost estimates, design analysis, engineering studies, planning documents, DD 1391s, facilities studies, environmental assessments, facilities utilization studies, deficiency tabulation studies, economic analysis, program for design/space program, equipment planning, and category designation (medical/dental and non-medical). Work will be performed at various Navy and Marine Corps facilities and other government facilities within the NAVFAC Pacific AOR. The term of the contract is not to exceed 60 months with an expected completion date of April 2015. Contract funds will expire at the end of the current fiscal year. This contract was competitively procured via the Navy Electronic Commerce Online Web site, with 19 proposals received. The Naval Facilities Engineering Command, Pacific, Pearl Harbor, Hawaii, is the contracting activity (N62742-10-D-0005).
~MAR Inc.*, Rockville, Md., is being awarded a maximum amount $30,000,000 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract in support of the Naval Facilities Engineering Service Center, Port Hueneme, for the operation, maintenance, and repair of the M/V Independence, including providing research, development, testing, and evaluation of undersea surveillance systems, load handling systems, acoustic array systems, cable system components, cable and system survivability studies, installation methods, test vessel support, and training range establishment and maintenance. Work will be performed in Port Hueneme, Calif. The term of the contract is not to exceed 60 months, with an expected completion date of April 2015. Contract funds will expire at the end of the current fiscal year. The contract was competitively procured as a 100 percent small business 8(a) set-aside via the Navy Electronic Commerce Online Web site, with one proposal received. The Naval Facilities Engineering Command, Specialty Center Acquisitions, Port Hueneme, Calif., is the contracting activity (N62583-10-D-0363).
~Raytheon Co., Integrated Defense Systems, San Diego, Calif., is being awarded a $14,222,122 modification to previously awarded firm-fixed-price contract (N00024-09-C-5100) for the production of five fiscal 2010 ship self defense systems (SSDS) MK2 open architecture computing environment kits. The kits include cabinets, processors, converters, network devices, and interface units. The equipment sets consolidate the computing and interface requirements for the SSDS ship class variants. The fiscal 2010 kits will be installed at the Naval Air Systems Command land-based test site and on CVN 75, CVN 78, LPD 26, and LHA 7. Work will be performed in San Diego, Calif. (50 percent), and Portsmouth, R.I. (50 percent), and is expected to be completed by January 2012. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command in Washington, D.C., is the contracting activity.
~General Dynamics, National Steel and Shipbuilding Co., San Diego, Calif., is being awarded a $10,000,000 modification to previously awarded contract (N00024-09-C-2229) for System Design Part 2 efforts associated with the Mobile Landing Platform program. Work will be performed in San Diego, Calif. (58.2 percent); Beloit, Wis. (7.3 percent); Busan, South Korea (5.7 percent); Pittsburgh, Pa. (5.6 percent); Houston, Texas (5.0 percent); Annapolis, Md. (4.0 percent); Norfolk, Va. (2.0 percent); Belle Chasse, La. (0.7 percent); Mobile, Ala. (0.5 percent); New York, N.Y. (0.4 percent); Deerfield Beach, Fla. (0.2 percent); Georgetown, S.C.(0.2 percent); Houma, La. (0.2 percent); Clovis, Calif. (0.1 percent); New Orleans, La. (0.1 percent); Rochester, N.Y. (0.1 percent); Stevensville, Md. (0.1 percent); Ogden, Utah (0.1 percent); Old Saybrook, Conn. (0.1 percent); Pensacola, Fla. (0.1 percent); and other various locations. Work is expected to be completed by August 2010. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command in Washington, D.C., is the contracting activity.
DEFENSE LOGISTICS AGENCY~Hologic, Inc., Bedford, Mass., is being awarded a maximum $15,000,000 fixed-price with economic price adjustment contract for radiology systems, subsystems, and components. There are no other locations of performance. Using services are Army, Navy, Air Force, Marine Corps and federal civilian agencies. The original proposal was Web solicited with 43 responses. Contract funds will not expire at the end of the current fiscal year. The date of performance completion is April 6, 2011. The Defense Supply Center Philadelphia (DSCP), Philadelphia, Pa., is the contracting activity (SPM2D1-09-D-8334).
DTN News: General Dynamics Awarded $20 Million Contract By Boeing For Production Of Composite C-17 Aircraft ComponentsSource: DTN News / General Dynamics
(NSI News Source Info) CHARLOTTE, N.C., - April 8, 2010: General Dynamics Armament and Technical Products was awarded a contract valued at approximately $20 million from The Boeing Company for the production of composite components for the C-17 Globemaster III advanced airlifter. Deliveries are expected to begin in February 2011 and be completed by April 2012. Production and program management will be performed at General Dynamics' advanced materials facility in Marion, Va. General Dynamics Armament and Technical Products is a business unit of General Dynamics (NYSE:GD - News).
General Dynamics provides components for the C-17, including the winglets, main and nose landing gear doors, flap leading and trailing edge panels, and the forward and aft radomes.
"Our team in Marion is proud to continue our work with Boeing," said Jim Losse, vice president and general manager of advanced materials for General Dynamics Armament and Technical Products. "We have been working with Boeing on a variety of C-17 composite technologies for more than 20 years. This contract will keep C-17 components in production through early 2012."
In addition to the C-17, the Marion site produces composite parts for a variety of aircraft platforms.
General Dynamics Armament and Technical Products, located in Charlotte, N.C., provides a broad range of system solutions for military and commercial applications. The company designs, develops and produces high-performance weapon and armament systems, defensive armor, countermeasure systems and aerospace composite solutions, as well as off-road axle and suspension systems. It is also a leading U.S. producer of biological and chemical detection systems. More information about General Dynamics Armament and Technical Products can be found on the Internet at http://www.gdatp.com/.
General Dynamics, headquartered in Falls Church, Va., employs approximately 91,700 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at http://www.generaldynamics.com/.
DTN News: First Lockheed Martin Mission Systems-Equipped F-35 Enters Flight TestSource: DTN News / Lockheed Martin
(NSI News Source Info) FORT WORTH, Texas, - April 8, 2010: The first mission systems-equipped Lockheed Martin (NYSE:LMT - News) F-35 Lightning II stealth fighter flew for the first time today, ushering in what will be the most powerful and comprehensive sensor package ever to fly in a fighter.
During the flight, F-35 Test Pilot David Nelson climbed to 15,500 feet (4,700 meters), verified engine response at varying throttle settings, performed a series of flight-qualities maneuvers and checked the operation of the aircraft's mission systems. The flight out of Lockheed Martin's Fort Worth plant began at 10:04 a.m. CDT and concluded at 10:59 a.m.
"Today's flight initiates a level of avionics capability that no fighter has ever achieved," said Eric Branyan, Lockheed Martin F-35 deputy program manager. "The F-35's next-generation sensor suite enables a new capability for multi role aircraft, collecting vast amounts of data and fusing the information into a single, highly comprehensible display that will enable the pilot to make faster and more effective tactical decisions."
The F-35's avionics, or mission systems, also process and apply data from a wide array of off-board sensors based on land, in the air or at sea, enabling the jet to perform command-and-control functions while providing unprecedented situational awareness to air and surface forces.
The F-35's full mission systems suite includes:
•Northrop Grumman AN/APG-81 Active Electronically Scanned Array radar
•Long-range, multiple simultaneous air-to-air and air-to-ground targeting; SAR mapping
•Lockheed Martin Electro-Optical Targeting System (EOTS)
•Long-range, passive infrared search and track, air-to-air and air-to-ground targeting capabilities
•Northrop Grumman Electro-Optical Distributed Aperture System (EO-DAS)
•Passive, spherical, long-range threat detection; source of infrared video and night-vision projection onto pilot's helmet visor for spherical view around aircraft
•BAE Systems Electronic Warfare (EW) system
•Simultaneous geo-location of multiple threats and targets
•VSI Helmet Mounted Display System (HMDS)
•Helmet with integrated, virtual head-up display, targeting information, look-shoot capability and video/night vision projected onto the helmet visor
•Northrop Grumman Integrated Communication, Navigation & Identification (ICNI)
•Friend-or-foe identification; automatic acquisition of fly-to points; secure multi-wave, multiband, multimode wireless communications and data links
•Lockheed Martin Integrated Core Processor (ICP)
•Supports radar, EOTS and DAS sensor processing, navigation, stores management fire control and fusion of sensor and off-board information
•Honeywell Inertial Navigation System
•Raytheon Global Positioning System
F-35 BF-4, a short takeoff/vertical landing (STOVL) variant, will begin testing with the AESA radar, EW, ICNI, ICP, GPS, INS and HMDS, then integrate the remaining sensors as flight testing progresses. F-35C carrier variant and F-35A conventional takeoff and landing variant test aircraft will be similarly mission systems-equipped, with mission systems commonality among the three variants near 100 percent. High avionics commonality is an enabler of rapid training, interoperability, and lower production and support costs.
F-35 avionics already have undergone more than 100,000 hours of laboratory testing, including sensor-fusion testing in the program's Cooperative Avionics Test Bed, a highly modified 737 airliner incorporating the entire F-35 mission systems suite, including an F-35 cockpit. F-35 software has demonstrated remarkable stability, and sensors have met or exceeded performance predictions.
BF-4 is scheduled to fly to Naval Air Station Patuxent River, Md., where it will join three other F-35Bs currently undergoing flight testing. BF-4's general test objectives include providing data for mission systems Block 0.5 functionality in the F-35 flight environment to evaluate hardware and software implementation and integration, and providing data to support mission systems component development.
The Block 0.5 software incorporates important capabilities, including air-to-air search and synthetic aperture radar modes, identification friend/foe transponder, integrated UHF/VHF radios, electronic warfare radar warning receiver, and navigation functions. Information is presented to the pilot through state-of-the-art cockpit and helmet displays.
The F-35 Lightning II is a 5th generation fighter, combining advanced stealth with fighter speed and agility, fully fused sensor information, network-enabled operations, advanced sustainment, and lower operational and support costs. Lockheed Martin is developing the F-35 with its principal industrial partners, Northrop Grumman and BAE Systems. Two separate, interchangeable F-35 engines are under development: the Pratt & Whitney F135 and the GE Rolls-Royce Fighter Engine Team F136.
Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation reported 2009 sales of $45.2 billion.
For additional information, visit our website: http://www.lockheedmartin.com/
DTN News: Brazil Favors France's Rafale Jet - Minister
* Defense Minister to recommend jet plane next week
* Only France can ensure full technology transfer-Jobim
* Says US has bad track record with technology embargoesSource: DTN News / Reuters By Raymond Colitt
(NSI News Source Info) BRASILIA, Brazil - April 8, 2010: Brazil's air force prefers France's Rafale jet as its next-generation fighter despite the plane's higher price tag, Defense Minister Nelson Jobim said on Wednesday.
Brazil is in the final stages of buying 36 jets worth more than $4 billion, which are to be assembled locally. The deal could eventually rise to more than 100 aircraft.
The three finalists are the Rafale made by Dassault (AVMD.PA), the Gripen NG made by Sweden's Saab (SAABb.ST), and the F-18 made by U.S.-based Boeing Co (BA.N).
Jobim told a congressional hearing the air force commander preferred the Rafale on defense policy grounds.
"He said that based on technical criteria, any of the three planes met the needs to control air space, but that the air force command considered the Rafale to be more consistent with defense policies despite its costs," Jobim said.
In January, local media reported the air force preferred the Gripen because it had lower purchase and maintenance costs and would allow for more technology to be transferred to Brazil.
Analysts said Jobim may have pressured the air force to change its position. Jobim and President Luiz Inacio Lula da Silva have repeatedly expressed their preference for the Rafale. Late last year, Lula said the choice was not technical but political and strategic and that he would have the final word.
Brazil has signed a strategic defense agreement with France worth billions of dollars, including the local assembly of helicopters and conventional and nuclear-powered submarines.
Latin America's largest country is looking for a generous technology transfer offer and local assembly as part of the deal.
France was the only country that could ensure those requirements, Jobim told legislators.
"What is worth more to Brazil? To pay more and have autonomy or pay less and have no technology autonomy?" he said.
Boeing had offered to assemble part of the plane's "sensitive" components in Brazil in an effort to convince Brazilian authorities there would be no restrictions on technology transfer, Jobim said.
"I'm not interested in that, I'm interested in the plane," Jobim said in reference to his reply to Boeing.
Jobim also said the U.S. government could give no upfront guarantee and that Brazil had seen a series of U.S. technology embargoes.
The Gripen involved a series of parts suppliers from different countries with which Brazil would have to negotiate separately, he added.
Jobim will present his recommendation to Lula as early as next week but it will still be reviewed by the National Defense Council before a final decision, he said.
(Editing by Peter Cooney)
DTN News: Russian Military Set To Upgrade Bulk Of Weaponry By 2020
Source: DTN News / RIA Novosti
(NSI News Source Info) MOSCOW, Russia - April 8, 2010: Russia may boost the share of advanced military equipment in its Armed Forces to 70% of the total by 2020, a Russian think tank said on Wednesday. "A draft state arms procurement program for 2011-2020 will be finalized in 2010. This program stipulates the upgrade of up to 11% of military equipment annually and will allow Russia to increase the share of modern weaponry to 70%," Russian-based World Arms Markets Analysis Center said in a report.
According to the draft program, the Russian Armed Forces should receive more than 1,500 combat aircraft and about 200 air defense systems by 2020.
Russia also plans to develop a unified air defense/missile defense network, to start the production of a fifth-generation fighter, and to develop a new strategic bomber during the same period.
Deputy Prime Minister Sergei Ivanov earlier said the government had already outlined the budget for the draft arms procurement program and asked President Dmitry Medvedev to authorize the increase of financing for the defense industry by 100 billion rubles ($3.4 bln) annually to ensure the efficient implementation of the program until 2020.
The Russian military is expected to receive 27 combat jets, over 50 helicopters and five battalions of S-400 air defense systems in 2010.
Related NewsRussian military denies plans to buy Italian armored vehiclesRussian military to be equipped with modern weapons - Putin Russian military lays hope on new Angara carrier rocketsRussia to have full gamut of air, outer space defenses by 2015
DTN News: Talks Continue On Russian Deliveries Of S-300 Missiles To IranSource: DTN News / RIA Novosti
(NSI News Source Info) BRATISLAVA - April 8, 2010: Russia continues to hold talks on deliveries of S-300 surface-to-air missile systems to Iran, a Russian defense official said on Wednesday.
"Contracts have been signed, and they are being implemented - they have not been torn up," head of the Federal Agency for Military Cooperation Mikhail Dmitriyev said.
He reiterated that Russia has not yet decided on the date for the delivery of the systems.
Russia signed a contract with Iran on the supply of at least five S-300 air defense systems to Tehran in December 2005. However, Moscow has not so far honored the contract, which many experts say is due to pressure from Washington and Tel Aviv.
Both the United States and Israel have not ruled out military action if diplomacy fails to resolve the dispute over Iran's nuclear program and have expressed concern over S-300 deliveries, which would significantly strengthen Iran's air defenses.
The advanced version of the S-300 missile system, called S-300PMU1 (SA-20 Gargoyle), has a range of over 150 kilometers (over 100 miles) and can intercept ballistic missiles and aircraft at low and high altitudes, making the system an effective tool for warding off possible airstrikes.
Russian defense industry officials have repeatedly said that Russia is interested in fulfilling the contract, which is worth hundreds of millions of dollars, but the future of the contract would largely depend on the current situation in international affairs and the Kremlin's position.
Iranian officials have said that Iran could sue Russia in an international court if Moscow refuses to fulfill its commitments on the delivery of the S-300 system to Tehran.
The long-disputed issue came into media spotlight again on the eve of the signing of a new nuclear arms reduction treaty between Moscow and Washington to be signed by presidents Dmitry Medvedev and Barack Obama on April 8 in Prague.
Related NewsDates for S-300 deliveries to Iran to be specified later - defense industry official Russia 'fixing' technical issues delaying S-300 deliveries to IranTehran warns Moscow over S-300 missile delivery delaysIran develops air defense system comparable to Russia's S-300
DTN News: Russia To Withdraw From Arms Reduction Deal If U.S. Increases Missile DefenseSource: DTN News / RIA Novosti(NSI News Source Info) MOSCOW, Russia - April 8, 2010: Russia may withdraw from the arms reduction treaty if Washington significantly increases its missile defense, Russian Foreign Minister Sergei Lavrov said on Tuesday.
Russian President Dmitry Medvedev and U.S. President Barack Obama are to sign a new strategic arms treaty on Thursday in Prague. The pact will replace the START 1 treaty, the cornerstone of post-Cold War arms control, which expired on December 5.
"Russia has the right to withdraw from the strategic nuclear weapons treaty if a quantitative and qualitative increase in U.S. strategic missile defense significantly influences the effectiveness of Russian strategic nuclear forces," the minister said adding that Russia itself will determine the extent of such influence and that this was a specific precondition of Russia.
The strategic arms pact stipulates that the number of nuclear warheads is to be reduced to 1,550 on each side, while the number of delivery vehicles must not exceed 800 on each side.
Under the deal, which will have a validity term of ten years unless it is superseded by another strategic arms reduction agreement, strategic offensive weapons are to be based solely on the national territories of Russia and the United States.
Lavrov said that Washington's plans for a missile defense shield do not presently constitute any threat to Moscow's strategic interests, but he emphasized that Russia did not rule out that the plans could eventually constitute a threat.
"If the strategic missile defense shield [...] is estimated by our military specialists to be posing a risk for Russia's strategic nuclear forces, then we will have the right to use the conditions included in the [new arms cut] deal."
Lavrov expressed hope that the new deal will be ratified by the Russian State Duma and the U.S. Congress by the end of April.
"I can only speak from the Russian side," he said. "The Russian side is confident that the treaty, which we will sign and forward for ratification, deserves to come into force," he said.
Lavrov has repeatedly suggested that a new nuclear arms cuts deal be linked to Washington's missile operations in Eastern Europe.
Many experts believe, however, that the Russian demand will probably not be satisfied as the U.S. Senate is unlikely to ratify any document containing a formal link between arms cuts and the missile shield.
Russia and the United States have been negotiating a replacement to the Strategic Arms Reduction Treaty since Medvedev and Obama met in April last year, but finalizing a document has dragged on, with U.S. plans for missile defense in Europe a particular sticking point.
In February, Bulgaria and Romania said they were in talks with U.S. President Barack Obama's administration on deploying elements of the U.S. missile shield on their territories from 2015.
The move came after Obama scrapped last September plans by the Bush administration to deploy missile-defense elements in the Czech Republic and Poland due to a reassessment of the threat from Iran. Russia fiercely opposed the plans as a threat to its national security.
Related NewsU.S. missile shield plans currently no threat to Russia - LavrovThe START Follow-on Treaty: Questions the Senate Needs to AskNew START treaty faces unclear futureQuestions Abound as "New START" Agreement is Completed
DTN News: Boeing Hands Over GOES-P Satellite To NASA For Final TestingSource: DTN News / Boeing
(NSI News Source Info) EL SEGUNDO, Calif., - April 7, 2010: Boeing [NYSE: BA] today announced that it transferred control of the third Geostationary Operational Environmental Satellite (GOES-P) to NASA and the National Oceanic and Atmospheric Administration (NOAA) on March 24 to begin on-orbit verification testing.
GOES-P -- which was officially renamed GOES-15 after reaching geosynchronous orbit -- will serve as an on-orbit spare to the current GOES constellation and support enhanced Earth observation and weather monitoring for more than 50 percent of the planet, including the continental United States.
“GOES-15 is on its way to join the fleet and begin fulfilling NOAA’s mission to support advanced weather monitoring and forecasting, which can save lives and prevent millions of dollars in property damage,” said Craig Cooning, vice president and general manager of Boeing Space and Intelligence Systems. “Some of the newest Boeing-built GOES satellites are being deployed now to serve a vital national role. GOES-13, in fact, is in the process of being activated as the operational East Coast satellite in time for this year’s hurricane season.”
GOES-15 launched on March 4 from Cape Canaveral Air Force Station, Fla., on a Delta IV rocket procured by Boeing Launch Services.
Following launch, the GOES-15 satellite performed its orbit-raising sequence over a period of approximately two weeks, executing a series of maneuvers that fired the satellite engine and elevated the spacecraft to its on-orbit test location at 89.5 degrees west longitude.
With health and safety checks completed on the satellite, Boeing is ready to begin verification testing with the NASA space operations team in the NOAA Satellite Operations Control Center in Suitland, Md. Several post-launch milestones will occur during on-orbit testing, including:
the launch and orbit-raising data review
a contingency operations readiness review
testing and verification of the spacecraft’s instruments and communications services.
GOES-15 took its first public high-resolution photo of Earth on April 6.
After approximately five months of on-orbit testing, GOES-15 will be moved to its on-orbit storage location at 105 degrees west longitude and officially turned over to NOAA this fall.
A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world’s largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $34 billion business with 68,000 employees worldwide.
DTN News: South Korea to Integrate Textron Defense Systems' Sensor Fuzed Weapon With FA-50 Aircraft
Source: DTN News / Int'l Media
(NSI News Source Info) WILMINGTON, Mass.- April 7, 2010: Textron Defense Systems, an operating unit of Textron Systems, a Textron Inc. (NYSE: TXT - News) company, announced today that the Republic of Korea Air Force has chosen Textron Defense Systems’ Sensor Fuzed Weapon (SFW) for integration onto the Korea Aerospace Industries FA-50 light combat aircraft. Through a foreign military sale led by the Eglin Air Force Base Air Armament Center and the Defense Acquisition Program Administration of South Korea, Textron Defense Systems expects to begin providing inert integration rounds starting in 2010.
“SFW’s precision and reliability are valuable assets that can help ensure the security of the Korean Peninsula and greater Pacific Region,” says Senior Vice President and General Manager Mark Catizone of Textron Defense Systems. “The integration of our SFW smart area weapon onto the highly capable FA-50 aircraft is an important first step toward system purchases in the future.”
Textron Defense Systems’ SFW accurately detects and defeats a wide range of moving and stationary land and maritime target threats — from heavy armored battle tanks and soft-skinned vehicles to maritime threats — over a wide area with minimal collateral damage and no hazardous unexploded ordnance. In fact, SFW has been verified by the U.S. government to achieve greater than 99 percent reliability during its flight test program, which includes thousands of tests in various conditions.
SFW contains Textron Defense Systems’ BLU-108 submunition and smart Skeet™ warheads equipped with dual-mode passive infrared and active laser sensors. If a Skeet warhead does not detect a valid target over its lofted trajectory, one of its three safety modes will activate. The first two modes enable the Skeet to self destruct after eight seconds from launch or within a 50-foot (approximately 15-meter) altitude above the ground. The Skeet’s third feature is a self-neutralizing time-out device that will yield the warhead inert within minutes of hitting the ground. These built-in, redundant self-destruct logic and self-neutralization features are key elements that distinguish SFW from legacy munitions.
About Textron Defense Systems
Textron Defense Systems employs advanced technology and industry expertise to develop and manufacture state-of-the-art smart weapons; airborne and ground-based sensors and surveillance systems; and protection systems for the defense, aerospace and homeland security communities. Its innovative systems for the military provide precision effects, actionable intelligence and force protection. More information is available at http://www.textrondefense.comAbout Textron Systems
Textron Systems Corporation has been providing innovative solutions to the defense, homeland security and aerospace communities for more than 50 years. Known for its unmanned aircraft systems, advanced marine craft, armored vehicles, intelligent battlefield and surveillance systems, intelligence software solutions, precision smart weapons, piston engines, test and training systems, and total life cycle sustainment services, Textron Systems includes AAI Corporation, Lycoming Engines, Overwatch, Textron Defense Systems and Textron Marine & Land Systems. Textron Systems Corporation is an indirect wholly owned subsidiary of Textron Inc. More information is available at http://www.textronsystems.comAbout Textron Inc.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at http://www.textron.comSkeet is a trademark of Textron Systems Corporation.
Forward-looking Information: Certain statements in this press release are forward-looking statements and speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including but not limited to the following: (a) changes in worldwide economic and political conditions that impact demand for our products, interest rates and foreign exchange rates; (b) changes in national or international funding priorities, U.S. and foreign military budget constraints and determinations, and government policies on the export and import of military and commercial products; (c) legislative or regulatory actions impacting defense operations; (d) the efficacy of research and development investments to develop new products (e) the launching of significant new products or programs which could result in unanticipated expenses; and (f) performance issues with key suppliers, subcontractors and business partners.
DTN News: U.S.-India Defense Trade Expected To Increase
Source: Covington & Burling LLP At Lexology.com
(NSI News Source Info) India, USA - April 7, 2010: Significant increases in India’s defense budget, together with frequent state-to-state defense trade dialogue and a new U.S-India agreement on end-use monitoring, offer tremendous export opportunities for U.S. defense companies.
U.S.-INDIA DEFENSE TRADE DIALOGUE
The meeting of the U.S.-India High Technology Cooperation Group in Washington, D.C. two weeks ago is the most recent in a series of important bilateral trade discussions between the United States and India on high technology and defense trade issues. Indian Foreign Secretary Nirupama Rao chaired the meeting which involved industry-to-industry discussions on March 15 followed by government-level meetings on March 16 concerning promotion of high technology trade between India and the United States. Acting Under Secretary of Commerce, Daniel Hill, Deputy National Security Adviser, Michael Froman, and Assistant Secretary of Commerce, Kevin Wolf, all participated in the meeting, which focused on defense and strategic trade in addition to other “dual use” goods and technologies such as biotechnology and nanotechnology.
During the meeting, Foreign Secretary Rao applauded the Administration’s current export control reform efforts and said that she hopes the efforts will result in an enhancement of high technology trade between the United States and India that reaffirms the strategic nature of the U.S.-India partnership.
In January, U.S. Defense Secretary Robert Gates made his second visit to India as Secretary of Defense, where he spoke with Indian leaders about deepening the long-term defense relationship between the United States and India and continued negotiations concerning defense-security related agreements that, if concluded, would allow for further expansion of defense trade with India. In November 2009, President Obama welcomed Prime Minister Singh to the White House for the first state visit of his administration. White House press secretary Robert Gibbs stated that the visit would “highlight the strong and growing strategic partnership between the United States and India.” Last July, Secretary Clinton traveled to India for a series of meetings that included key defense trade discussions.
U.S.-INDIA END-USE MONITORING AGREEMENT
During Secretary Clinton’s visit to India, the United States and India finally reached agreement on an important bilateral defense trade arrangement that removes a significant hurdle to the sale of U.S. defense articles and services to India. The agreement pertains to the “end-use monitoring” (“EUM”) commitments that U.S. law requires from foreign purchasers of U.S. defense articles and services. In the past, the Indian Government was reluctant to agree to standard EUM verification commitments in military sales contracts. The breakthrough achieved last July marks a change in the U.S.-India defense relationship that should allow for more military-to-military cooperation and make U.S. defense companies more competitive in the expanding Indian defense market.
Section 505 of the Foreign Assistance Act of 1961 and section 40A of the Arms Export Control Act require that foreign purchasers commit to allow the U.S. Government to verify the “use, transfer and security” of U.S. defense articles and defense services provided under security assistance programs (including International Military Education and Training programs and Foreign Military Sales (“FMS”)). The U.S. Department of Defense monitors the end-use of such defense articles and services through a program known as “Golden Sentry.” The required commitments take the form of EUM clauses included in contracts for military sales. Standard EUM verification commitments include agreements to permit scheduled inspections or physical inventories upon the request of the U.S. Government. The U.S.-India EUM agreement will streamline defense sales that heretofore had been negotiated on a case-by-base due to the absence of an agreed formulation for the required EUM clause.
The EUM agreement is controversial in India. For years the Indian Government objected to the United States’ standard language in the end-user monitoring clauses. Members of the opposition in India’s parliament criticized the EUM agreement citing concerns that allowing inspections of Indian military installations will compromise India’s national sovereignty. However, Prime Minister Singh is standing behind the agreement and has emphasized the need to diversify India’s sources for military equipment in order to obtain the best technology. The Prime Minister assured critics that the agreement does not provide for unilateral inspections of Indian military installations; rather, any verification inspections must be requested and conducted on a date and in a location that is mutually acceptable.
Assistant Secretary of State for South and Central Asian Affairs, Robert Blake, noted that “India already holds more military exercises with the United States than with any other country,” and “the EUM agreement should help facilitate the Indian Government’s increasing shift toward U.S. defense equipment.”
EXPANSIVE INDIAN DEFENSE BUDGET IS OPPORTUNITY FOR INCREASED U.S. DEFENSE SALES
U.S. defense exports to India have exceeded $3.1 billion since 2008, but there is substantial room to grow. India’s defense budget is expected to be robust over the next few years as India seeks to modernize its aging, Soviet era military equipment and technology. India’s defense budget is approximately $30 billion for the year ending March 31, which represents a 25 percent increase over last year and 70 percent increase from five years ago. Moreover, as part of its modernization program, India estimates that it will spend roughly $100 billion on defense over ten years.
India already has several major defense procurements in the works from U.S. defense suppliers. On January 22, the Department of Defense notified Congress of a possible Foreign Military Sale to India of 145 U.S.-made Howitzers worth approximately $647 million. Earlier in January, India submitted a letter of intent to purchase 10 cargo transport aircraft from Boeing.
U.S. companies Lockheed Martin and Boeing also are positioned to benefit from the EUM agreement. The aerospace companies are bidding to supply India’s Medium-Multi-Role Combat Aircraft, a deal worth more than $10 billion. The contract would include 126 fighter aircraft and ongoing training and maintenance for the Indian Air Force. Other contenders for the contract include French, Russian and Swedish companies and a European consortium.
Defense acquisitions expected by India in the near future include a broad array of military equipment and technology, such as warships, fighter jets, tanks and other weapons.
With the increasing defense trade with India signaled by India’s modernization program and the finalization of the EUM agreement, U.S. defense companies should position themselves to take advantage of new opportunities for sales to India. It will be important to develop an understanding of the requirements for negotiating military sales in India, and to monitor India’s expansive military modernization program to identify opportunities for sales. As always, U.S. defense companies seeking to make sales abroad should also implement and maintain healthy export controls and Foreign Corrupt Practices Act (“FCPA”) compliance programs.
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