DTN News: U.S. Department of Defense Contracts Dated February 4, 2010

DTN News: U.S. Department of Defense Contracts Dated February 4, 2010 *Source: DoD issued February 4, 2010

(NSI News Source Info) WASHINGTON - February 4, 2010: U.S. Department of Defense, Office of the Assistant Secretary of Defense (Public Affairs) Contracts issued February 4, 2010 are undermentioned;

CONTRACTS

DEFENSE LOGISTICS AGENCY ~Otis Products Inc.*, Lyon Falls, N.Y., is being awarded a maximum $176,056,609 firm-fixed-price, sole-source contract for parts. There are no other locations of performance. Using services are Army, Navy, Air Force and Marine Corps. There was originally one proposal solicited with one response. Contract funds will expire at the end of the current fiscal year. The date of performance completion is Jan. 31, 2011. The Defense Supply Center Columbus, Columbus, Ohio, is the contracting activity (SPM7LX-10-D-7026). NAVY ~Rolls-Royce Corp., Indianapolis, Ind., is being awarded a $52,484,004 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0020) to provide additional funding for maintenance services in support of the MV-22 and CV-22 AE1107C engines. Work will be performed in Indianapolis, Ind., and is expected to be completed in February 2011. Contract funds in the amount of $52,412,454 will expire at the end of the current fiscal year. This contract combines purchases for the Navy ($48,234,204; 92 percent) and the Air Force ($4,249,800; 8 percent). The Naval Air Systems Command, Patuxent River, Md., is the contracting activity. ~Rolls-Royce Engine Services, Oakland, Calif. (N00019-09-D-0013); StandardAero (San Antonio), Inc., San Antonio, Texas (N00019-09-D-0014); and Wood Group Turbopower, LLC, Miami Lakes, Fla. (N00019-09-D-0012) are each being awarded modifications to previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contracts to exercise options for depot-level repair for the T56 Series III engine. The award for Rolls-Royce Engine Services is $34,465,472; for StandardAero, Inc., $41,193,248; and for Wood Group Turbopower, LLC, $44,600,663. Depot-level repair of the T56 Series III engine modules is required to support fielded P-3 and derivative aircraft, as well as T56 powered C-130 and C-2 aircraft. The three major modules of the engine to be maintained and repaired under these options will be a maximum annual quantity of 160 power sections, 180 reduction gear assemblies, and 140 torquemeters. Depot-level repair of T56 Series III engine modules is required to support fielded P-3 and derivative aircraft, as well as T56-powered C-130 and C-2 aircraft. Place of performance for Rolls-Royce Engine Services is Oakland, Calif.; for StandardAero, Inc., San Antonio, Texas; and for Wood Group Turbopower, LLC, Miami Lakes, Fla. Efforts under these options are expected to be completed in February 2011. Contract funds will not expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity. ~Swish Data Corp., Warwick, N.Y., is being awarded an $11,977,511 firm-fixed-price contract to provide network appliance hardware, software and training for the Marine Corps Networks Operations and Security Center Early Transition Activity Program. Work will be performed in Sunnyvale, Calif., and is expected to be completed by March 6, 2010. Contract funds will expire at the end of the current fiscal year. This requirement was competitively procured as a small business set-aside with 21 proposals solicited and four offers received. The Marine Corps Systems Command, Quantico, Va., is the contracting activity (M67854-10-C-4040). ~L-3 Services, Inc., Mount Laurel, N.J., is being awarded $11,701,417 for task order #0090 under a previously awarded firm-fixed-price contract (M67854-02-A-9010) to provide acquisition, logistics and administrative support as program management assistance for the Program Manager for Training Systems (PM TRASYS) located at the Central Florida Research Park, Orlando, Fla. PM TRASYS continues to support Marine Corps Systems Command (MCSC) and Training Education Command (TECOM) requirements to identify, develop and field material and non-material solutions as the training systems manager. This support task includes work across the live training systems functional and project teams, live training systems integrated program management, military operations on urban terrain systems, range instrumentation systems, range training aides devices and simulations, field operations, and emerging hybrid live-simulated training environments. The focus for live training systems efforts responds to requirements requested by TECOM to support pre-deployment training/alternate training venues and the Marine Corps’ operational force capabilities. This includes providing program, logistics and administrative support for mapping MCSC product groups systems acquisition to training requirements, determination of most efficient training methodologies, and implementation and technical documentation for acquisition of training systems and training support. Work will be performed in Orlando, Fla., and is expected to be completed in February 2011. Contract funds will expire at the end of the current fiscal year. The Marine Corps System Command, Quantico, Va., is the contracting activity. ~OASYS Technology, LLC*, Manchester, N.H., is being awarded a $10,623,581 cost-plus-fixed-fee contract for the development of an unmanned airborne multispectral sensor suite for more advanced imaging technology in unmanned aerial vehicles. Work will be performed in Manchester, N.H., and is expected to be completed in February 2015. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured via a broad agency announcement. The Naval Air Warfare Center Aircraft Division, Lakehurst, N.J., is the contracting activity (N68335-10-C-0064). ~General Dynamics, Bath Iron Works, Bath, Maine, is being awarded a $9,000,000 modification to previously awarded contract (N00024-06-C-2303) to provide additional systems engineering services associated with the detail design and construction of the DDG 1000 Zumwalt Class destroyer. Systems engineering efforts include detail design excursions, shock qualification, production process prototype manufacturing, and life cycle support services prior to post shakedown availability. Work will be performed in Bath, Maine, and is expected to be completed by April 2010. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington Navy Yard, D.C., is the contracting activity. *Small business

DTN News: Albania Buying 5 Eurocopters For 78 Million Euros

DTN News: Albania Buying 5 Eurocopters For 78 Million Euros *Source: DTN News / Reuters (NSI News Source Info) TIRANA, Albania - February 4, 2010: Albania will buy five helicopters from Eurocopter for 78.6 million euros over four years to upgrade its fleet to the standards of NATO, which it joined in April last year. AS 532 Cougar Mk I UC/AC is a military version with a short fuselage capable of carrying 21 commandos, which can be fitted with equipment for maximum efficiency in all theaters of operation: radar or missile detector, decoy-launcher. Moreover, its optional equipment make it truly multi-purpose: winch, projector, specific equipment for SAR missions, or, for instance, crashworthy seats, IR camera, NVG compatible cockpit for special missions. The AC version is the armed version and can be equipped with side-mounted machine-guns and axial pods fitted with either 20-mm guns or 68-mm rocket-launchers. Parliament is set to approve the contract late on Thursday after the Defence Ministry asked that it speed up the approval to replace its Soviet and Chinese-made helicopter fleet that dates back to the 1960s. "The approval of this contract by parliament is absolutely indispensable because the helicopter fleet is an important asset at the national level," the government asked parliament in a report seen by Reuters. "For the armed forces, this will be probably for a long time the project of the biggest financial value." Eurocopter, a unit of EADS (EAD.PA), will supply Albania with five AS 532 AL Cougar helicopters -- one of the military versions of the Super PUMA helicopters -- for use in its military, search and rescue operations and the transport of VIPs. Albania has allocated two percent of its GDP to the armed forces for a decade now as it aimed to become a member of NATO with new equipment to conform to its participation in NATO operations. Albania's fleet consists of Soviet and Chinese single-engine helicopters produced in 1965-1970 that have limited operational and technical qualities, cannot fly at night and cannot operate with NATO forces. As soon as the ruling Democratic Party of Prime Minister Sali Berisha came to power in 2005, it grounded the air force's fleet of airplanes, including the cigar-shaped MIG 19 and MIG 21 fighter jets, and sent them to scrapyards and museums. Albania's future air fleet is largely to consist of helicopters because they are suitable to its mountainous terrain.

DTN News: Gates Defends F-35, Rejects Increase In F/A-18s

DTN News: Gates Defends F-35, Rejects Increase In F/A-18s * Gates sees smaller Navy fighter shortfall * Says multiyear contract savings fall short

*Source: DTN News / Reuters By Andrea Shalal-Esa (NSI News Source Info) WASHINGTON - February 4, 2010: Top Pentagon leaders on Wednesday underscored their commitment to the Lockheed Martin Corp (LMT.N) F-35 fighter program and challenged some of the arguments Boeing Co (BA.N) is hoping could help it sell more of its F/A-18 fighters before production of the F-35 gets into full swing. Defense Secretary Robert Gates said recent data showed that a multiyear contract for new Boeing F/A-18 fighters would save only 6.5 percent in procurement costs, far short of a 10 percent threshold for signing such long-term agreements. Gates also said the Navy faced a shortfall of about only some 100 carrier-based aircraft in 2018 before the Lockheed Martin Corp F-35 reached maximum production levels, far less than a shortfall of 243 planes often cited by Boeing backers. Lawmakers on the House Armed Services Committee repeatedly questioned Gates and the military's top uniformed officer about the so-called strike fighter shortfall, arguing that the Pentagon should buy more of the older-model Boeing jets. Boeing has lauded the performance of its F/A-18 fighters, arguing they could be a cheaper alternative to some of the F-35s the military plans to buy in coming years -- at less risk since the plane has been in production for some time. Navy Admiral Mike Mullen, chairman of the Joint Chiefs of Staff, told lawmakers the F/A-18 was "a great airplane," but said the F-35 -- at $300 billion the Pentagon's largest weapons program ever -- was "the right answer for the future." Gates and Mullen acknowledged that the F-35 program had run into some problems, but said a restructuring effort led by Pentagon acquisition chief Ashton Carter would improve oversight and allow more time for testing before production of the new radar-evading fighters ramped up to higher levels. Gates said the F-35 program office had been too optimistic in its estimates, but the fighter's problems were not unlike those seen on other developmental aircraft. "The reality is it's a good airplane. It's meeting the performance parameters," he said. Mullen said the Pentagon was still due to get its first training squadron of F-35s in 2011, with the Marine Corps slated to start using their first squadron in 2012, the Air Force in 2013 and the Navy in 2014. Gates said the Navy was also developing strategies for dealing with its projected shortfall, including better aligning air wing readiness with carrier readiness and reducing the size of the Marine Corp's F/A-18 squadrons. Mullen told lawmakers that the Navy was also sharply increasing its purchases of an electronic attack version of the F/A-18, the EA-18G, calling that a "very positive step." He acknowledged Boeing's concern about the end of the F/A-18 production line but said several foreign countries were actively considering the plane in their fighter competitions. The increased capabilities of the new fifth-generation fighters like the F-35 also meant the Pentagon would not need to replace legacy aircraft on a one-to-one basis, Gates said. In addition, new unmanned planes were accomplishing many missions previously handled by manned aircraft, Gates said, noting that eight unmanned Reapers could do the work of 36 F-16 fighters, and they were armed with the same weapons. He said the U.S. military currently had about 2,245 combat aircraft, a number projected to drop to 1,864 by 2020. But that would be offset by planned increases in unmanned aircraft over the same period, leaving a gap of only some 40 planes. He said it was also important for Congress to allow the U.S. Air Force to retire some of its oldest planes so it could find the money to buy new ones. (Editing by Steve Orlofsky)

DTN News: Boeing Connects 1st F-22 Mission Training Center To US Air Force Network

DTN News: Boeing Connects 1st F-22 Mission Training Center To US Air Force Network *Source: DTN News / Boeing (NSI News Source Info) ST. LOUIS, - February 4, 2010: Boeing [NYSE: BA] connected the F-22 Mission Training Center (MTC) at Langley Air Force Base, Va., to the U.S. Air Force's Distributed Mission Operations Network (DMON) in November, allowing F-22 pilots at the base to train virtually with pilots in other aircraft platforms for the first time. The MTC at Langley is the first of four F-22 training centers that Boeing will link to the network over the next three years. The Air Force's Distributed Mission Operations (DMO) configuration enables MTC sites to connect with one another via the DMON, increasing the scale and improving the accuracy of training operations. Connecting the four-seat F-22 MTC flight trainer to the DMON also provides F-22 pilots with more realistic training with other Air Force assets on the network, such as the F-15C MTC. "Boeing's F-22 MTC was the first trainer in the industry to achieve 'first-pass success' on its initial DMON testing," said Mark McGraw, Boeing vice president of Training Systems and Services. This MTC was also the first to use the Agile Software Development process, which is based on industry and Boeing best practices for efficient software development. This process allowed the functionality of the trainer's components to be assessed much faster than with traditional software development methods. Boeing is on contract to deliver three new F-22 MTCs for Elmendorf Air Force Base, Alaska; Holloman Air Force Base, N.M.; and Hickam Air Force Base, Hawaii. 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: Pentagon OKs Plans To Buy More Armored Vehicles

DTN News: Pentagon OKs Plans To Buy More Armored Vehicles * Decision adds 1,460 truck orders for Oshkosh * Navistar, General Dynamics and BAE also get orders * Pentagon added up to 4,000 vehicles to requirement (Adds additional data from Pentagon)

*Source: DTN News / Reuters By Andrea Shalal-Esa (NSI News Source Info) WASHINGTON - February 4, 2010: The Pentagon's weapons chief has approved plans to buy more than 2,800 additional armored vehicles for use in Afghanistan, including 1,460 all-terrain versions made by Oshkosh Corp (OSK.N). Defense Undersecretary Ashton Carter signed a memorandum on Jan. 29 boosting the total number of Mine Resistant Ambush Protected (MRAP) vehicles to be bought to 25,700, according to a copy of the document obtained by Reuters. He approved specific orders of 1,460 MRAP-All Terrain Vehicles (M-ATV) made by Oshkosh; 1,050 Dash MRAP versions with independent suspensions built by Navistar International Corp (NAV.N); 250 RG-31A3 versions built by General Dynamics Corp (GD.N) and 58 RG-33 MRAPS made by BAE Systems Plc (BAES.L). The U.S. Central Comman, which runs the wars in Iraq and Afghanistan, requested the additional vehicles, Carter said in the memo. More could be needed later, he said. "It is not known and will not be known soon, how many vehicles will ultimately be required," Carter said in the memo, which was first reported by trade publication Inside the Army. "While these assessments are going on, it is important to begin production and initial fielding since otherwise needed vehicles will be unnecessarily delayed," he wrote. Carter's memo followed a Jan. 4 decision by the Pentagon's Joint Requirements Oversight Council (JROC) to add up to 4,000 more trucks to its MRAP requirement, boosting that number to 26,882 vehicles. Defense consultant Jim McAleese said the orders should provide a short-term boost for the four companies, but probably represented the tail end of the MRAP orders for Afghanistan. "These represent the majority of the final orders to support the war in Afghanistan," McAleese said, although he noted Central Command still had the option to ask for about 1,200 more vehicles, if needed, given the JROC decision. In addition, he said the companies would be vying for work upgrading the vehicles and supporting them in the field. The U.S. military had a total of 4,170 MRAPs in Afghanistan, including 575 of the Oshkosh all-terrain models, as of Jan. 21, said Pentagon spokeswoman Cheryl Irwin. Defense Secretary Robert Gates last year said U.S. plans to increase troops in Afghanistan would likely require an additional 4,000 to 5,000 all-terrain MRAPS built by Oshkosh. The U.S. military has spent more than $12.5 billion in recent years to speed the blast-proof MRAP trucks, first to Iraq, and now to Afghanistan. The vehicles have a v-shaped hull that helps to protect troops against roadside bombs and other threats that have been blamed for killing U.S. troops in less armored Humvees and other land vehicles. Navy Admiral Mike Mullen, chairman of the Joint Chiefs of Staff, told reporters on Monday the Pentagon's fiscal 2010 supplemental war budget includes more than $1 billion to complete the MRAP program and $3.4 billion in the fiscal 2011 budget to sustain it.

(Reporting by Andrea Shalal-Esa; editing by Gerald E. McCormick, Andre Grenon, Leslie Gevirtz)

DTN News: Pentagon Vows To Move Forward On Tanker

DTN News: Pentagon Vows To Move Forward On Tanker * Pentagon will move forward, even if only one bidder * Gates underscores need for new tankers (Adds fresh Gates quote, Northrop statement) *Source: DTN News / Reuters By Andrea Shalal-Esa (NSI News Source Info) WASHINGTON, - February 4, 2010: The Pentagon wants Boeing Co (BA.N) and Northrop Grumman Corp (NOC.N) to compete for billions of dollars of orders for a new aerial refueling plane, but will press ahead even if there is only one bidder, U.S. Defense Secretary Robert Gates said on Wednesday. "Obviously, we would like to have a competition for it and we hope that both companies will agree to participate," Gates told the House Armed Services Committee. "But should that not prove to be the case, we ... have to move forward," Gates said, when pressed on how the Pentagon would respond if one of the companies dropped out. "It's been delayed too long. We need to get this thing started." Northrop and its European partner, EADS (EAD.PA), have told the Pentagon they will not submit a bid unless the Air Force makes significant changes to its final request for proposals (RFP) for the competition, which is valued at more than $35 billion and could be worth up to $100 billion in the long run. The Air Force plans to issue final rules for the competition later this month and award a contract this summer. Air Force Chief of Staff General Norton Schwartz last month said the service could change some "financial arrangements" for the competition, but was sticking to its requirements for the planes, which will deliver fuel to fighter jets and other aircraft in mid-air. Industry executives had expected the terms around Feb. 12, but now say they are more likely to be released the week of Feb. 22, or possibly the following week. Northrop said it was looking forward to the release of the final terms for the competition and hoped it would be structured in a way that allowed the company to compete. "Northrop Grumman feels that the current draft RFP, as structured, fails the test of true competition and, without meaningful changes, is not an RFP to which Northrop Grumman can respond," spokesman Randy Belote said. This is the Air Force's third attempt to replace its aging fleet of KC-135 aircraft, which are 49 years old on average. Northrop and EADS won a projected $35 billion contract for 179 tanker planes in February 2008, but the Pentagon canceled it after government auditors upheld a protest filed by Boeing. Congress killed an earlier Air Force plan to buy 100 767-based tankers under a sole-source deal with Boeing, because of a procurement scandal that sent a former top Air Force official and Boeing's former chief financial officer to prison for violating federal conflict of interest rules. (Reporting by Andrea Shalal-Esa; Editing by Steve Orlofsky, Leslie Gevirtz)

DTN News: France, Germany Urge A400M Funding Deal

DTN News: France, Germany Urge A400M Funding Deal * Leaders say everything must be done to try to save A400M * Talks to resolve Airbus plane spat resume in Berlin * German minister warns against undue pressure * Newspaper says Spain proposes higher aid offer

*Source: DTN News / Reuters By Sophie Hardach and Dave Graham (NSI News Source Info) PARIS/BERLIN, - February 4, 2010: France and Germany called for an urgent solution on Thursday to the funding crisis surrounding the A400M troop plane, Europe's biggest military project, as Airbus(EAD.PA) resumed talks with government buyers. The 20 billion euro project is four years late and 11.2 billion euros over budget, threatening up to 10,000 jobs. EADS (EAD.PA) unit Airbus is appealing to a group of seven NATO nations for billions of euros in extra support to start full production of the plane, which first flew in December, but governments are reluctant to let taxpayers foot the whole bill. "Everything must be done to reach a solution. It is a decisive project which must be resolved very quickly," French President Nicolas Sarkozy said after a Franco-German summit. "With regards to the A400M project, I think that the negotiations should be continued, and we agreed that this is a project of strategic significance, and that everything should be done to find a solution," German Chancellor Angela Merkel said. The two leaders were speaking at a news conference after a regular summit but stopped short of issuing a formal statement. Their comments came as Airbus resumed talks with European defence officials in Berlin in a frantic bid to prevent the runaway costs killing off Europe's largest defence project. The A400M has been held up by engine and other technical problems, sparking testy exchanges between Germany, its biggest projected buyer, and Toulouse-based Airbus. Other buyers are France, Britain, Belgium, Luxembourg, Spain and Turkey. Germany's defence minister, who has taken a harder line than most over the crisis, warned Airbus not to overplay its hand. "There is a contract and we have an interest in not allowing ourselves to be pressured unduly," Karl-Theodor zu Guttenberg told reporters in Paris after the bilateral summit. ACCOUNTING PRESSURE Guttenberg was speaking before heading off to Istanbul for a meeting of NATO defence ministers, part of a flurry of meetings being held across Europe that could determine the A400M's fate. The NATO meeting will formally tackle deployments and training needs in Afghanistan but delegates did not exclude a side meeting of the seven A400M partners late on Friday. The A400M is designed to put soldiers and heavy equipment in rugged combat zones like Afghanistan, filling a gap in aircraft capabilities between Boeing's (BA.N) jet-powered C-17 Globemasters and Lockheed Martin's (LMT.N) C-130 Hercules turboprops. Would-be customers, especially Britain, want it in service as soon as possible. Projected delays mean it will not enter service before 2013. Germany called on Wednesday for an urgent solution, but a French official said the parties aimed for a deal by the end of February, a prospect likely to dismay aerospace group EADS. Facing pressure to complete its 2009 accounts and decide on hefty A400M charges, EADS had set a Jan. 31 deadline for a deal. Airbus at one point threatened to shut down the A400M if a deal could not be reached soon, risking a major confrontation with countries that call most of the political shots at EADS. EADS is controlled jointly by French and German interests and the French and Spanish governments directly own stakes. Talks broke off last week over a 2.4 billion euro gap in the amount each side is prepared to invest to keep the A400M alive, with EADS seeking 4.4 billion and buyers offering 2 billion. Sources close to the talks said on Wednesday the differences had narrowed ahead of the Berlin talks. Spain has proposed that buyer nations pay 2.6 billion euros towards cost overruns, newspaper El Pais said on Thursday, citing a defence ministry letter.

(Additional reporting by Tracy Rucinski, Julien Toyer, Tim Hepher, Matthias Blamont and Rene Wagner; Editing by Greg Mahlich and Elaine Hardcastle)

DTN News: Czech Group In Supply Deal For Sikorsky's Black Hawk

DTN News: Czech Group In Supply Deal For Sikorsky's Black Hawk *Source: DTN News / Reuters (NSI News Source Info) PRAGUE, Czech Republic - February 4, 2010: Czech aerospace manufacturer Aero Vodochody has agreed a seven-year deal to supply cockpits to United Technologies Corp's (UTX.N) Sikorsky Aircraft, maker of the Black Hawk helicopter, the Czech group said on Thursday. Unlisted Aero Vodochody did not disclose the value of the contract, which runs until 2017 with the option of a five-year extension. The Sikorsky deal was one of three new contracts worth a total 4 billion crowns ($213 million) for Aero Vodochody. Sikorsky Aircraft won two U.S. military helicopter contracts worth a total of $1.52 billio in January.

AERO Vodochody a.s. is a joint stock company, registered in the Companies Register in Prague on January 2, 1991. Till the end of the year 2006, Aero was a state-owned company. From January 4, 2007, private equity group Penta became a sole shareholder of Aero and in the same year successfully finished its restructuring process, the main result of which was profit reached by Aero for 2007 in the amount of CZK 236 million. Aero thus entered the year 2008 as a stable and profitable company, ready to develop long-term partnerships with its customers.

AERO Vodochody - The largest aviation technology manufacturer in the Czech Republic - One of the oldest aviation technology manufacturers in the world (* 1919) - Focused on development, production, sales and support of civil and military aerospace technology - Extensive experience from production of over 11,000 aircraft - High-quality technological base - AS 9100 / ISO 9001 certified quality management system - Well-established cooperation with leading aerospace manufacturers - Convenient location near Prague, the Capital of the Czech Republic

($1=18.78 Czech crowns) (Reporting by Jason Hovet; Editing by Mike Nesbit)

DTN News: Brazil Agrees On Price To Buy French Jets - Report

DTN News: Brazil Agrees On Price To Buy French Jets - Report *Source: DTN News / Reuters (NSI News Source Info) BRASILIA, Brazil - February 4, 2010: Brazil has agreed on a price to buy and assemble 36 Rafale fighter jets with French manufacturer Dassault (AVMD.PA) after months of negotiations, a leading Brazilian newspaper reported on Thursday. Rafale is a twin-jet combat aircraft capable of carrying out a wide range of short and long-range missions, including ground and sea attack, air defence and air superiority, reconnaissance, and high-accuracy strike or nuclear strike deterrence. The aircraft has been developed for the French Air Force and Navy. 61 aircraft were ordered (36 for the air force and 25 for the navy). The Rafale M entered service in 2001, and ten aircraft are operational on the Charles de Gaulle aircraft carrier. Rafale B and C entered service with the French Air Force in June 2006, when the first squadron was established. The second air force squadron was set up in 2008. President Luiz Inacio Lula da Silva settled on the Rafale after Dassault reduced the total price to $6.2 billion from $8.2 billion, Folha de Sao Paulo reported, without specifying how it obtained the information. The other two contenders in the bidding process are the Gripen NG made by Sweden's Saab (SAABb.ST) and the F-18 made by the U.S.-based Boeing Co (BA.N). Dassault declined to comment. Brazil's defense ministry said it still has not concluded a report on the bidding process detailing its recommendation for Lula. A spokesman at the president's office did not comment. A cabinet member told Reuters last month that Lula would choose the Rafale but still wanted to negotiate a lower price. Latin America's largest country is seeking a generous technology transfer offer and local assembly. The deal could eventually rise to more than 100 aircraft. Even with the alleged discount, the Rafale price tag would top Boeing's $5.7 billion and Saab's $4.5 billion, Folha said. 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.

(Reporting by Raymond Colitt; Additional reporting by Eduardo Simoes in Sao Paulo; Editing by Gerald E. McCormick)

DTN News: Boeing Modernized High Frequency Communications System Achieves Service Milestone

DTN News: Boeing Modernized High Frequency Communications System Achieves Service Milestone *Source: DTN News / Boeing (NSI News Source Info) SINGAPORE - February 4, 2010: Boeing Defence Australia, a wholly owned subsidiary of The Boeing Company [NYSE: BA], announced today in Singapore that its Modernized High Frequency Communications System (MHFCS) has reached 130 days in service with the Australian Defence Force (ADF). The communications system is making its first appearance outside Australia at the Singapore Airshow -- the biggest aerospace and defense exhibition in Asia. "The 130-day service milestone is testament to the maturity of the system and shows that the team is on target for final system acceptance by the ADF in the coming months," said Steve Parker, vice president and general manager for Boeing Network & Space Systems - Australia. "Based on how well MHFCS has performed to date, Boeing is confident that demonstrating the system at international events, such as the Singapore Airshow, will help generate additional sales. MHFCS has the capability to transform High Frequency (HF) communications worldwide and provides nations with the highest levels of global connectivity while enhancing their information security." MHFCS is a managed, long-range, strategic communications system that facilitates the secure exchange of information, such as voice, e-mail, facsimile, HTTP interactive data and organizational messages, between fixed and mobile stations using one integrated system. Considered the world's most advanced strategic HF communications network, MHFCS features automated priority messaging, an assured delivery system, extensive geographic coverage, and automated advanced-frequency-management and traditional-operator tasks. The system complements Boeing's market-leading military and commercial satellite-communications products. Boeing Defence Australia, a wholly owned subsidiary of The Boeing Company and a business unit of Boeing Defense, Space & Security, is a leading Australian aerospace enterprise. With a world-class team of nearly 2,000 employees at 13 locations throughout Australia and two international sites, Boeing Defence Australia supports some of the largest and most complex defense projects in Australia. 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.