Defense Industry Daily

SPRP MiG-29
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Like Poland, Bulgaria bought its MiG-29s back when it was a strategic buffer on the side of the Soviets. Which makes hardware upgrades a bit awkward today. Sending the old fighters off to Russia for refurbishment is awkward at a time when NATO is attempting to roust the impression of additional asset rotations through Eastern Europe, including Bulgaria, where a dozen U.S. F-15s were lately exercising in Graf Ignatievo.

Poland, back in 2011, used their own state-owned Wojskowe Zaklady Lotnicze facility in Bydgoszcz to start processing 16 of its own MiG 29s, successfully swapping out avionics, mission computers, a NATO-compatible databus and hardened GPS. This wasn’t gold plating. They opted out of helmet-mounted displays, state-of-the-art counter measures and fitment for western weapons. The thinking was that if they could get one of their squadrons in the air until 2030, that would do.

So it makes perfect sense that Bulgaria would think about contracting with Poland’s WZL to refit.

Bulgaria, aside from the awkwardness and the very real threat of sending their hens to be repaired by the fox, understands the inherent problems in dealing with Russian service providers. It has also been a problematic client, with financing issues shorting many of its ambitious acquisition programs. While it is likely happenstance, the public nature of Bulgaria’s considering options (the minister of defense talked about it on national TV) could be a negotiating ploy to get a better deal with the Russians’ RSK MiG, whose maintenance contract runs out in September, or it could even be that Bulgaria is killing time until it can afford to have one or the other actually start work.

Bulgaria has also been looking to replace its MiG-21s, and has shortlisted three offers out of fifteen received, according to Air Recognition. Pakistan also wants to offer its own JF-17, manufactured with China.

Updates

October 17/16: Bulgaria’s Ministry of Defense has altered the criteria of their fighter acquisition program, lessening the importance of an aircraft’s lifespan to just 5% of the evaluation. The previous weightage of 25% was seen to favor Saab’s Gripen but this advantage has now shifted to second-hand F-16s. Bulgaria had wanted to buy used F-16s from Portugal but the plan was abandoned following the collapse of the government of Boykko Borissov in 2013.

April 18/16: April 18/16: The US Navy has awarded BAE Systems a $22 million contract external link to produce Archerfish mine neutralizers. Flown on board the MH-60S, Archerfish is a remotely-controlled underwater vehicle equipped with an explosive warhead to destroy sea mines. Deliveries of the systems are expected to begin in September 2017. The contract also includes further options which, if exercised by the DoD, could bring the total value to over $55.3 million.

January 27/16: Bulgaria will acquire new fighters to replace its older Soviet-era MiG-25s by 2019. The procurement will see Sofia purchase retired F-16s, the Gripen or the Eurofighter Typhoon as it moves away from its reliance on older Russian technology. The country’s 2004 joining with NATO saw them vow to have their MiGs retired and purchase eight new fighters by 2016. The last three of their MiG-25s were retired last December and an announcement on their replacement is expected by March of this year.

Mitsubisihi F-2s
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Japan already produces F-15J Eagle aircraft under license from Boeing, and in 1987 they selected Lockheed Martin F-16 fighter jet as the basis for a “local” design that would replace its 1970s era F-1s. The aim was to produce a less expensive fighter that would complement its F-15s, provide a bridge for key aerospace technology transfers, and give Japan’s aerospace industry experience with cutting-edge manufacturing and component technologies.

The F-2’s increased range is very useful to Japan, given their need to cover large land and maritime areas. Nevertheless, a combination of design decisions and meddling from Washington ensured that these fighters ended up costing almost as much as a twin-engine F-15J Eagle, without delivering the same performance. As a result, production ended early, and the 2011 tsunami made Japan’s fleet even smaller. The remaining fleet will continue to receive upgrades, in order to keep them combat capable for many years to come.

Japan’s F-2 Program F-2: The Aircraft

MHI’s F-1 w. ASMs
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Japan’s Mitsubishi F-1 heralded the revival of Japanese fighter design, but it was never really a front-line air combat fighter. Rather, it was derived from a trainer, and given secondary strike capabilities.

Japan’s F-2 aimed to take the next step, and become a full front-line fighter. While it looks like the F-16 from which it was derived, it’s noticeably bigger. Changes include a 17″ longer fuselage, larger horizontal tails, 25% more wing area, more internal fuel storage, and 2 more weapon store stations than the F-16.

F-2A vs. F-16C
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The aircraft is powered by GE’s uprated F110-129 engine generating 17,000 pounds of thrust, or 29,600 pounds with afterburners on. The centerline and inner-wing hardpoints are “wet,” and can carry drop tanks with up to 4,400kg of fuel for long range combat air patrols.

Mitsubishi Electric supplies a locally-designed X-band J/APG-1 AESA fire control radar, and a J/ARG-1 AESA datalink transmitter. Weapons carried include the AIM-9L Sidewinder and MHI AAM-3 short range air-air missiles, license-built AIM-7F/M Sparrow medium range air-air missiles (built until 2010), MHI’s Type 89 ASM-1 and ASM-2 anti-ship missiles, rocket launchers, and bombs that can include GPS-guided JDAM weapons.

Upgrades are underway.

Mitsubishi’s AAM-4B active-seeker medium range air-to-air missile is being added, along with a radar upgrade to APG-2 status. Together, they’ll give the F-2 the ability to attack multiple aerial opponents from medium range. They’ll also allow the fighters to fire and leave, if desired, instead of having to close into visual range while providing a radar lock for the AIM-7 Sparrow.

F-2: The Program

F-2A & F-4J Kai
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As noted above, the point of the F-2 program was to produce a cheaper fighter to complement its F-15s, provide a bridge for key aerospace technology transfers, and give Japan’s aerospace industry experience with cutting-edge manufacturing and component technologies. Unfortunately, the US Congress proved to be a significant program obstacle, raising many questions about technology transfer issues. That delayed the program by at least 2 years, and the resulting changes led to a better but more expensive design.

In the end, the F-2 delivered on its techno-industrial promises. Mitsubishi’s heavy use of graphite epoxy and co-cured composite technology for the wings encountered some teething problems, but proved to be a leading-edge use of a technology that provides weight savings, improved range, and some stealth benefits. This technology was then transferred back to America, as part of the program’s industrial partnership.

2003 Guam exercise
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On the flip side, the ambitious goal of developing a fighter that used so many new technologies exacted a price. At a reported $108 million per plane in 2004 dollars, the F-2 is as expensive as the F-15s it seeks to supplement. Unfortunately, its overall performance, smaller radar size, and single engine make it a less capable aircraft. As a result, a program originally intended to field 130 fighters ceased production at 94.

At least 18 F-2s were damaged in the 2011 tsunami, leaving a reduced fleet. That fleet will continue to receive upgrades, including upgrades to their Japanese radars, improved missiles, avionics improvements, and other required upgrades over time. Japan is also moving to try and rehabilitate and upgrade up to 13 of the 18 damaged planes.

Upgraded F-2s will continue flying alongside Japan’s F-15Js, and Japan’s next-generation F-35A fighters. With the JASDF’s F-4J and RF-4J Kai(zen) Phantom IIs slated for retirement, and China bent on aggressive moves in and around Japan, every fighter will count.

F-2: Industrial Partnerships

The government of Japan has overall F-2 program responsibility, and funds the program. Under the agreement, Japan is responsible for producing approximately 60% of the aircraft and the other 40% is produced in the USA. The Japanese defense ministry’s Technical Research and Development Institute is also involved in designing ongoing upgrades, in collaboration with program partner firms.

Mitsubishi Heavy Industries (MHI) is the prime contractor and has design responsibility for portions of the airframe and avionics, the digital flight controls, the active phased array radar, and certain support equipment. MHI is also responsible for overall systems integration, and all components are assembled by at their Komaki South Plant near Nagoya, Japan. MHI delivered the first production aircraft to the Ministry of Defense in September 2000.

Composite wing
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Key Japanese subcontractors include Fuji Heavy Industries (FHI) and Kawasaki Heavy Industries (KHI). FHI is responsible for developing the aircraft nose cone, the composite upper skin for the wing, and the horizontal and vertical tail assemblies. KHI is responsible for the center fuselage. The aircraft’s fly by wire system is a co-development with Japan Aviation Electric and Honeywell. Ishikawajima Harima Heavy Industries (IHI), another Japanese participant, produces the F110-GE-129 engines under license to General Electric of the United States.

Lockheed Martin provides about 40% of the overall fighter: all the aft fuselages, wing leading-edge flaps and stores management systems; 80% of all left-hand wing boxes; and other avionics and avionics support equipment. They also support MHI and the JASDF as they incorporate new weapons like Boeing’s Joint Direct Attack Munition (JDAM), and aid in other support activities. Lockheed Martin components are shipped to MHI’s Komaki-South facility, where they are assembled with other components by MHI to form the F-2.

Contracts & Key Events 2011 – 2016

Tsunami destroys 18 F-2s; Upgrade plan & budgets; Some damaged F-2s to be restored.

F-2 with AA-3s
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Mitsubishi Heavy Industries (MHI) is the prime contractor for the F-2. Lockheed Martin is the major subcontractor under the terms of their partnership.

October 17/16: Lockheed Martin has offered to collaborate with Mitsubishi Heavy Industries (MHI) on jointly developing a new fighter for Japan. LM President Marillyn Hewson made the disclosure saying the company will participate in a second round of Request For Information by Japan’s Ministry of Defense next year. Set to be the replacement for Tokyo’s current fleet of F-2s, other potential collaborators who have responded to the initial RFI include Boeing.

July 29/16: Plans for October? Mitsubishi’s X-2 stealth demonstrator is to go on public display at Gifu Air Base, Japan, on October 30. This will be one of the first times regular punters can get up close and personal with the new jet following its maiden flight in April. For those rushing to check those dates, authorities have advised to leave the cars at home and come via rail.

July 21/16: Industry partners already lining up for the Japanese F-3 program include US giants Lockheed Martin and Boeing. The new program is set to replace the existing F-2 fighter with a next generation stealth fighter based on the X-2 Shinshin experimental aircraft. With the F-3 planned for 2027, any partners taken into the development program stand to earn from a $20 billion project.

April 28/16: After numerous delays in its maiden flight which occurred last week amid much excitement from manufacturer Mitsubishi Heavy Industries (MHI), the X-2 stealth demonstrator will have a year long test campaign involving around 50 flights. With the maiden flight described as “ordinary” by Hirofumi Doi, manager of Japan’s Future Fighter Program at the defence ministry’s Acquisition, Technology & Logistics Agency (ATLA), future testing will help ATLA gather data on advanced fighter technologies such as stealth, thrust vectoring, data links, and other areas. Depending on this data, flight testing of the X-2 could easily be extended, leading the way for a potentially busy period for the demonstrator.

April 25/16: Mitsubishi Heavy Industries (MHI) has announced the successful maiden flight of its X-2 stealth demonstrator. The test flight now makes Japan the world’s fourth nation to test-fly a stealth aircraft. After performing a number of basic maneuvers, the X-2 left Nagoya Airport and landed at the Japan Air Self-Defense Force’s Gifu Air Base. In development since 2009, the X-2 program has seen MHI cooperate with 220 domestic companies alongside Japan’s Acquisition, Technology & Logistics Agency (ATLA) to develop the necessary technologies.

April 14/16: Mitsubishi’s X-2 stealth demonstrator has moved one step closer to its first flight after a series of taxi and runway tests since January. The aircraft has now moved into the Vr stage whereby the aircraft accelerated to rotation speed, and the pilot pulled the nose wheel off the ground. Testing took place at the Nagoya Airfield on April 9, and precedes the plane’s maiden flight, expected by the end of the month.

April 13/16: The first flight of Mitsubishi’s X-2 (formally ATD-X) stealth demonstrator is expected to take place toward the end of this month. Initially scheduled for February, the maiden flight was pushed back by the developers out of caution, but the jet has been spotted undertaking runway and taxiing tests over the last number of weeks. The X-2 is being developed to lay the basis for a Japanese made replacement of Mitsubishi’s F-2, due to be retired in 2028.

March 24/16: The Japanese government has opened talks with western fighter manufacturers such as Boeing and Lockheed Martin, over their participation in helping to build the country’s next F-3 series of fighter jets. Talks come as the Mitsubishi developed ATD-X experimental stealth aircraft prepares for its first test flights within the next few days. The indigenous ATD-X would be part of any attempt by Japan to develop their own F-3 fighter, with analysts expecting such a program to cost at least $40 billion. While this may prove too costly, Japan is anxious to continue developing its stealth technologies as it tries not to fall behind regional rival China.

March 8/16: Mitsubishi’s X-2 has been performing well in taxi tests according to Japan’s Acquisition Technology and Logistics Agency (ATLA). The agency was happy with the progress it was making, saying they were “proceeding with tests, performing very careful maintenance, and making some minor adjustments.” However, the agency hasn’t commented on the jet’s future flying schedule, or how many test flights will take place in 2016. The maiden flight had been originally planned for February.

February 12/16: The Mitsubishi X-2 Shinshin was recently photographed while out for its first taxi test at Nagoya airport. After its unveiling to the public just last month, a maiden flight for the stealth demonstrator, formally known as the ATD-X, is just weeks away, bar any upcoming technical problems. The Shinshin, which means “spirit of the heart,” is Japan’s first foray into developing experimental stealth technologies and will form the basis for its fifth generation F-3 fighters planned for 2027.

January 29/16: Mitsubishi Heavy Industries has unveiled to the press their latest ATD-X stealth fighter prototype at their plant in Komaki. The fifth generation stealth fighter was developed alongside Defense Ministry’s Technical Research and Development Institute (TRDI) with the aim of seeing if an indigenously produced stealth fighter could be developed in Japan along with researching the technologies required. With its first test flight due this year, full scale production could be under way as early as 2018. The new jet will replace the aging Mitsubishi F-2 and F-15, while complementing its F-35 acquisition as Japan looks to take more responsibility over defending it’s territory and population.

December 29/15: Mitsubishi’s ATD-X stealth fighter is to make its maiden flight in February 2016 according to the Japanese Ministry of Defense. The indigenous fighter is set to complete taxiing and ground trials in late January prior to the voyage. The demonstrator model is Japan’s first attempt at developing an entirely domestically produced stealth fighter, but has been suffering from delays. It is hoped that the ATD-X program will eventually lead to their own F-3 fighter to be produced by 2027.

December 7/15: Japan has made plans to test its very own fifth generation stealth jet, making it only the fourth country in the world to do so. The maiden flight of the ATD-X will take place in the first quarter of 2016 and aims to replace the current F-2 fighters in service. The development program is the most expensive in Japan’s history, costing $324 million. Japan’s announcement comes at a time when President Abe is modernizing the Japanese Self-Defence Force and new laws to send Japanese troops abroad. The re-militarization has received much chagrin from neighbours China and South Korea as well as domestic protests against Japan’s resurgent ultra-nationalism.

Dec 19/13: Lockheed Martin announces that they’ve delivered the first F-2 aft and leading edge flaps as part of a “restoration plan to replenish Japan’s F-2 fleet,” in cooperation with Mitsubishi Heavy Industries (MHI).

Discussions with Lockheed Martin confirmed that Japan will try to repair and refurbish up to 13 of the 18 fighters damaged in the 2011 tsunami. With initial F-35 price soaring over $120 million per plane, this is a much cheaper way to try and increase the JASDF fleet. If it works, of course. Sources: Lockheed Martin, “Lockheed Martin Supports Japanese F-2 Restoration Program”.

Dec 12/13: Budget. Japan’s 5-year military budget features a slight increase, with political cover provided by an aggressive new Chinese “Air Defense Identification Zone” that includes Japanese territory. Japanese moves will include shifting a 2nd squadron of F-15Js to Naha Air Base in Okinawa, but they’ll need to cover the territory that the shifted F-15s are leaving.

They’re also moving to begin some F-15 and F-2 upgrades, beginning with trials for some features. F-15 improvements top out at YEN 17.58 billion, while F-2 upgrades could total up to YEN 24.3 billion (about $240 million). That includes 30 sets of APG-2 radars (YEN 9.4 billion), 12 “fuselage upgrades” (YEN 3.8 billion), adding JDAM capability to 4 planes as an initial step (YEN 4.4 billion), and an integration & testing trial with an unspecified targeting pod, which could become a mass upgrade (YEN 6.7 billion). Sources: Japan MoD, “Defense Programs and Budget of Japan: Overview of FY2014 Budget Request” and “Defense of Japan 2013” annual white paper in Additional Readings | Asahi Shimbun, “A lot of new equipment purchases in latest 5-year defense plan” | Taiwan’s Want China Times, “Japan increases defense budget in wake of ADIZ controversy”.

Feb 25/12: Radar & Missile upgrades. Aviation Week reports that Japan is planning to spend YEN 36 billion (about $468 million) to upgrade about 60 F-2 fighters with the Mitsubishi Electric Corp. AAM-4B missile, and improve their J/APG-1 fire control radar to a new APG-2 standard.

The AAM-4B will be the same size as the AIM-7 Sparrow missile, but it will have an AESA radar seeker head, in order to allow active homing and lock-on after launch. These abilities allow the launching fighter to leave the area or shift attention to other targets, instead of having to remain vulnerable while homing in on the target until impact. A reported 20% range improvement over the AIM-7M Sparrow, and a 40% improvement in autonomous guidance distance over the AIM-120B AMRAAM, would really improve the F-2’s overall air-to-air performance. Japan might get similar improvements from buying the latest AIM-120C7 AMRAAM, though it’s hard to tell. What’s certain is that they wouldn’t get the same design and production experience.

The J/APG-2 involves J/APG-1 upgrades. Despite AESA technology’s natural advantages, Aviation Week points out that the APG-1 is not seen as a top of the line radar. It was an early AESA example, and many features were limited to “best we could do at the time” technologies. Upgrades seem to revolve around improvements to radiated power and signal processing. All the JASDF will say, is that the APG-2 and AAM-4B will give F-2As a new ability to engage multiple targets from medium range.

The new systems were developed by the Japanese defense ministry’s Technical Research and Development Institute with considerable help from Mitsubishi Heavy Industries (missile integration) and Mitsubishi Electric (radar upgrades). Sources: Aviation Week, “Japan’s Air-to-Air Upgrades”

Fleet upgrades

April 20/11: Tsunami aftermath. Japan seems willing to try and repair some of the 18 Matsushima F-2s damaged in the tsunami, though they’re concerned that with the final F-2 delivery scheduled for this autumn, a parts shortage is a real possibility.

Repairs and parts production could keep the production line busy longer than expected. Still, as Kyle Mizokami points out, inundation with seawater can’t be good for the planes’ electronics and structures. New Pacific Institute | Sankei Shimbun [in Japanese].

Post-tsunami
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March 12/11: Tsunami! With nuclear plants in danger of full meltdown, and thousands dead in the wake of a 1-2 punch from an 8.9 earthquake and its tsunami, losing 18 F-2 fighters is a minor cost in the overall scheme of things. Still, Japan’s low military spending levels, and its need to finance reconstruction, mean that the JASDF has taken a significant hit. IAF News:

“The Sendai airport authority in Miyagi Prefecture said the airport’s runways were submerged by tidal waves. The Air Self-Defense Force’s Matsushima Air Base in Miyagi was inundated with seawater, damaging 18 F-2 fighters and a number of other aircraft possibly permanently, the Defense Ministry said.”

Strategy Page points out that the 21st Fighter Training Squadron at Matsushima was also the site of most F-2 pilot training. Flight International (incl. photos/ video) | Liveleak video | IAF News | Strategy Page.

Tsunami takes out 18 F-2s

2002 – 2010

Confirmed contracts for 49, as total F-2 orders rise to 94.

F-2B
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April 8/08: +8. Lockheed Martin announces the 12th and final contract from Mitsubishi Heavy Industries (MHI), valued at approximately $250 million. Lockheed Martin will manufacture all of the aft fuselages, wing leading-edge flaps and stores management systems; 80% of all left-hand wing boxes; and other avionics and avionics support equipment, for 8 additional F-2 production aircraft.

This award brings the total aircraft under contract to 94, which is the total that the Japan Government has authorized for production. Lockheed Martin is also working with MHI to define appropriate post-production support arrangements. Lockheed Martin release.

March 31/07: +5. Lockheed Martin receives a $150 million contract from MHI to manufacture components for 5 additional F-2 production aircraft. Lockheed Martin release.

March 31/06: +5. Lockheed Martin receives a contract from Mitsubishi Heavy Industries (MHI) valued at over $145 million to manufacture components for 5 additional F-2 production aircraft. This is the 10th annual contract for F2 production, bringing the total aircraft under contract to 81. At this point, more than 60 F-2 fighters are in service in Japan. Lockheed Martin release.

March 31/05: +5. Lockheed Martin receives a contract from Mitsubishi Heavy Industries (MHI) valued at over $125 million to manufacture components for 5 additional F-2 production aircraft. This new award brings the total aircraft under contract to 76. Lockheed Martin release.

March 31/04: +6. Lockheed Martin receives a contract from Mitsubishi Heavy Industries (MHI) valued at over $130 million to manufacture components for 6 additional F-2 production aircraft. This new award brings the total aircraft under contract to 71. Lockheed Martin release.

April 27/03: Industrial. Lockheed Martin announces a new 3-year labor agreement with District Lodge 776 of the International Association of Machinists and Aerospace Workers (IAM), the largest union at its Fort Worth, TX aircraft manufacturing facility. The new contract will allow the union members to report to work as usual on Monday, April 28/03, and resume their production of the F-16 Fighting Falcon, major portions of the F/A-22 Raptor, and components for Japan’s F-2 fighter, among other projects.

March 31/03: +8. Lockheed Martin receives a contract from Mitsubishi Heavy Industries (MHI) valued at $160 million to manufacture components for 8 additional F-2 production aircraft. This new award brings the total aircraft under contract to 65, with 36 total F-2s delivered by the end of the month. Lockheed Martin release.

March 29/02: +12. Lockheed Martin receives a contract from Mitsubishi Heavy Industries (MHI) valued at over $200 million to manufacture components for 12 additional F-2 production aircraft. This new award is the 6th annual contract under the MHI-LMCO partnership, and brings the total aircraft under contract to 57; by the end this month, 28 F-2s had been delivered to the JDA. Lockheed Martin release.

1995 – 2001

From prototype delivery to 1st deployment.

F-2 fighter

October 2001: Deployment. The Japan Air Self-Defense Force deploys the first F-2 to Misawa AB in northern Japan. Source.

Deployed

April 20/2000: Industrial. Lockheed Martin Aeronautics Company’s military aircraft design and production facility in Fort Worth, TX is awarded the coveted Shingo Prize for Excellence in Manufacturing. Named after internationally acclaimed industrialist Shigeo Shingo of Japan, the Shingo is sometimes referred to as the Nobel Prize of manufacturing.

Lockheed Martin ‘s release says that they are the largest single company, and the first aerospace prime contractor, ever to receive the award. It adds that they earned the award for several outstanding achievements, including substantial progress in implementing lean manufacturing principles in the production of the F-16, F-22 and Japan F-2 fighter aircraft. Other award criteria included the company’s successful partnering with customers and suppliers, application of innovative product development, et. al. Lockheed Martin release.

February 24/98: Industrial. Lockheed Martin Tactical Aircraft Systems has implemented an automated control process to streamline its procedures for documenting non-conforming material in the factory that produces the F-16 and major components for the F-22 and F-2 fighters. The change is one aspect of a lean manufacturing and quality improvement initiative that began in 1992.

Under the new process, 7 steps are streamlined into 4. The Quality Assurance Inspector enters the Quality Assurance Report (QAR) QAR directly into the PAAC data management system via computer. It is then reviewed by personnel who enter the QAR disposition into the system, which automatically performs transactions and creates rework or repair orders based on disposition. A laser printed paper QAR copy is routed with parts and then sent to the Quality Assurance Inspector who closes the QAR.

The old process took between 20 to 30 days to complete. With the automated system, up to 10 days can be cut from the cycle. By 2001, by 2001, Lockheed projects project net cumulative savings of over $1 million from this system, plus significant cycle time improvements and lower QAR rates. The automated process has already been successfully implemented in the F-22 program, and is scheduled to be implemented in the F-2 program by the end of February 1998. It will be fully implemented in the F-16 program by the end of 1998, and will be applied to future programs such as the Joint Strike Fighter. Lockheed Martin release.

October 1995: 1st flight. First flight of F-2 prototype aircraft.

March 1995: Delivery. Delivery of the first prototype F-2 aircraft.

Additional Readings Background: F-2 Fighter & Program

• Lockheed Martin – F-2 Defense Fighter

• Mitsubishi Heavy Industries – F-2

• Aerospace Web – Mitsubishi F-2 Multirole Fighter

• Air Force Technology – F-2 Attack Fighter, Japan

• Military Today – Mitsubishi F2

• Japan MoD – Defense Programs and Budget of Japan: Overview of FY2014 Budget Request [PDF]

• US GAO (1997, #NSIAD-97-76) – U.S.-Japan Fighter Aircraft: Agreement on F-2 Production. Includes issues with technology transfer.

News & Views

• Japan MoD – Defense of Japan 2013. Annual white paper.

• Aviation Week (Feb 24/12) – Japan’s Air-to-Air Upgrade. J/APG-2 radar and AAM-4B missile.

• Lockheed Martin Code One magazine (Q1 2001) – Full Production, Full Deployment For The F-2

• Lockheed Martin (Nov 8/99) – 3-D Woven Composites for the Joint Strike Fighter.

• MRO Today (1999) – Lean manufacturing of F-2 wing boxes cuts waste, raises quality

Americas

• Pressure has continued from US lawmakers opposed to continued arms sales to Saudi Arabia. Rep. Ted Lieu of California urged the Pentagon to suspend cooperation with a Saudi-led coalition conducting airstrikes in Yemen, saying in a letter to Secretary of State John Kerry released on Wednesday that civilian casualties from the strikes “appear to be the result of war crimes.” A funeral struck by Saudi missiles last weekend killed 140 mourners and Lieu is requesting that US arms sales to Riyadh be suspended until a White House review is completed.

• The Peruvian Ministry of Defense has received a number of R-312AT helicopter radio systems from JSC Rosoboronexport, subsidiary of Russia’s Rostec State Corporation. Delivery of the systems comes as part of an offset deal in connection with 24 Mi-171Sh helicopters and is expected to save Lima over $12.5 million. Rosboronexport have also promised to allocate $1 million for the building of a helicopter training center for Peru if eight offset projects agreed to are implemented.

Middle East & North Africa

• In response to missile attacks on US and allied vessels off the coast of Yemen, the Pentagon has ordered the US Navy to launch missile attacks at targets operated by Houthi rebels. On October 13, the USS Nitze fired three BGM-109 Tomahawk cruise missiles at radar sites in Yemen which were believed to have been active during previous attacks and attempted attacks on vessels. A defense official said the radar sites were in remote areas where there was little risk of civilian casualties. The Houthis meanwhile, reiterated their denial that they were responsible for the attack on US warship the USS Mason.

Europe

• As a way of saying sorry for the ditched Caracel military helicopter deal, Poland is to offer France alternative investment projects, according to the Polish Prime Minister. The previous Polish administration had agreed to buy 50 Airbus utility helicopters in April 2015 for $3.5 billion as part of efforts to modernize their military forces at a time of tensions with neighbor Russia. Beata Szydlo told Polish media that the French foreign minister will be presented with “cooperation proposals, when it comes to investment of another type, or a purchase of other equipment” when they make a visit to Warsaw, which is planned for the near future.

• Proposals for new tanks and aircraft have been submitted by the Italian armed forces for parliamentary approval. On October 11, the defense commission of the lower house of the Italian parliament began debating plans by the Italian military to buy the Centauro II tank and an updated version of its A-129 Mangusta helicopter. While once nothing more than a rubber stamp for military acquisitions, the parliament’s defense commission was given greater influence over defense spending due to legislation passed in 2012. They have until November 8 to offer an opinion on the purchases.

Asia Pacific

• In order to curry favor with the Indian government, Saab will share their Advanced Electronically Scanned Array (AESA) radar with Gallium Nitride (GaN) technology with India they if they select the Gripen fighter. The list of sweeteners also includes the previous offer of co-developing India’s indigenously manufactured fighter aircraft Tejas MK1A by setting up a production line in India under the “Make in India” scheme. Company officials said that both the LCA and the Gripen are of similar class and also share the same General Electric engine citing commonality in maintenance and operation.

• Boeing has revealed some of the potential upgrades offered to Japan’s F-15Js. The company’s defense head in Japan announced that AESA radars, a new mission computer, a new electronic warfare suite, conformal fuel tanks, and additional missiles would all be included as part of any deal. A model on display at Boeing’s stand at this week’s Japan Aerospace show depicts an F-15 loaded with 16 Raytheon AIM-120 AMRAAM air-to-air missiles: double the load now available.

• Kawasaki Heavy Industries are confident that they can poach customers away from Boeing’s P-8 Poseidon aircraft in favor of their own P-1. The company said that customers looking to move away from their older P-1 Orions see a number of advantages in the Japanese anti-submarine warfare plane over its American counterpart. One advantage touted over the P-8A is the P-1’s four turbofan engines, as a single engine failure will not result in the termination of the mission and allows the plane to operate at lower altitudes.

Today’s Video

USS Nitze Targeting Yemeni Radar Sites with Tomahawks:

Americas

• The chief of the Republic of Korea Air Force is to visit the US next month to help promote the T-50A bid by Korea Aerospace Industries (KAI) and Lockheed Martin. Gen. Jeong Kyeong-doo is scheduled to meet his US counterparts during the trip. Washington is expected to begin its selection process for 350 advanced jet trainers next year which could reach $20 billion in value.

• USS Nimitz became the fifth nuclear-powered aircraft carrier to have a hard-kill anti-torpedo defense system installed on board. Designed to destroy an incoming torpedo by collision, the Surface Ship Torpedo Defense (SSTD) System consists of the Torpedo Warning System, an automated control station and a Countermeasure Anti-Torpedo (CAT). The system was developed by Pennsylvania State University’s Applied Research Lab.

• POSCO Daewoo of South Korea has been contracted to provide a landing platform dock and multirole corvette vessels to the Brazilian Navy in a deal worth $1 billion. The firm will also modernize the Arsenal de Marinha do Rio de Janeiro shipyard and the ships will be constructed in partnership with domestic shipyards. In order to hunt deals in the region, POSCO Daewoo has operated offices out of the city of Sao Paulo since 1980.

Middle East & North Africa

• The Saudi-led coalition fighting Yemen has claimed to have shot down a Houthi rebel ballistic missile headed toward Khamees Mushait city in the kingdom’s southwest on Tuesday night. After destroying the missile, Saudi forces attacked the missile’s launch site. It’s believed that that target of the strike was Saudi Arabia’s King Faisal Military Camp located about 40 km (25 miles) north of the Yemeni border.

• Germany’s cabinet has approved the deployment of additional troops to Turkey to help operate NATO surveillance aircraft. The Airborne Warning and Control System (AWACS) aircraft will be used for reconnaissance in support of air strikes against IS targets. Berlin already has 500 personnel fighting IS with six Tornado surveillance aircraft and a refueling plane located at Turkey’s Incirlik air base.

• Turkish and Russian rapprochement continues with Ankara re-inviting a previously disqualified Russian bidder to its first long-range air and anti-missile defense system acquisition. China Precision Manufacturing Import-Export Corp (CPMIEC) had been originally tapped to provide their air defense architecture in a deal worth $3.44 billion before being ditching by Turkey following pressure from NATO allies. Since then, an indigenous effort has commenced to develop a system alongside parallel talks with US and European bidders.

Europe

• Twelve additional F-35A fighters have been requested by the Norwegian government. The proposal, if approved, would raise the total number of authorized F-35A purchases to 40 aircraft allowing Norway to participate in a proposed “block buy” for the F-35’s US and international partners. Unlike a multi-year procurement, a block buy does not lock the US or international partners into firm orders, but it gives Lockheed’s supply chain a long-term view of likely demand.

Asia Pacific

• Australian Armidale-class patrol boats are to receive mid-life upgrades from firm Austal Australia. This month will see the commencement of work on the hull remediation, corrective maintenance and configuration changes of up to seven vessels at Austal’s shipyard in Henderson, Western Australia. Austal is currently providing in-service support to the Australian Border Force’s fleet of eight company-built Cape-class patrol boats and has been contracted to provide in-service support for 19 Pacific Patrol Boat Replacement vessels, which enter service from late next year.

Today’s Video

North Korea’s Latest Missile Launch:

Keeping watch
(click to view full)

Australia’s long coast is also its border, and they’ve taken an innovative approach to the problem. Unlike, say, the US Coast Guard, Australia has semi-privatized the coastal patrol function, placing contractors under the Customs service. Once intruders are detected, these contractors can then call on pre-arranged support from civil authorities and/or the Royal Australian Navy and Air Force. Contracted services of this nature are becoming more common around the world, but Australia was really breaking new ground when they began Coastwatch on such a large scale in 1995.

Coastwatch was re-competed, and in 2006, Cobham’s subsidiary Surveillance Australia Pty Ltd retained the contract through the A$ 1+ billion next phase, called Project Sentinel. The new contract under Australia’s CMS04 (Civil Maritime Surveillance 04) program has expanded the fleet and addressed some concerns, but there are still areas where Australia lags a bit behind the leading edge. Even so, Coastwatch remain a touchstone program for countries considering a similar path.

Australia’s Coastwatch RAAF AP-3C Orion
(click to view full)

Australia has a 38,000 km coastline and an Exclusive Economic Zone of 16 million square kilometres, and faces an increasing level of incursions. Illegal fishing and asylum-seekers who set themselves adrift to take advantage of Australia’s refugee laws (if they survive). As it became clear that its northern approaches held other resources beyond fish, the area’s sovereignty and safety acquired a high priority.

By 2005, the Coastwatch division of the Australian Customs Service contracted for the use of 15 fixed-wing aircraft and 2 helicopters from civil providers, and set annual availability quotas from Customs and Navy patrol vessels (about 1,800 hours) and RAAF AP-3C Orions (about 250 hours) under Operation Cranberry.

Except for contracted AP-3C availabilities from the RAAF, aerial surveillance is carried out by civilian operators. Indeed, the program is the world’s largest aerial civil maritime surveillance operation. It involves 170 personnel, flying 20,000 hours per year from 4 four permanent bases (Broome, Darwin, Horn Island and Cairns) around Australia’s northern coast. As of 2006, the Surveillance Australia fixed-wing aircraft roster included:

• 5 Dash-8 Q200 MPA aircraft fitted with Immarsat communications, SeaVue surveillance radar, infra-red sensors and daylight TV camera for long-range offshore surveillance.

• 3 Cessna Reims F406 turboprop aircraft fitted with surveillance radar and night vision systems for inshore surveillance.

• 6 Pilatus Britten-Norman BN2B Islander aircraft, fitted for the Visual Surveillance role.

• 1 Shrike AC500 Aero Commander, fitted for the Visual Surveillance Role.

As noted above, these contracted assets work hand-in-hand with civil and military authorities to thwart drug runners, people smugglers and illegal fishing. While the surveillance is carried out under the auspices of Customs, several agencies rely on the intelligence gathered, including the Australian Federal Police, Quarantine and Inspection Service, Defence, Foreign Affairs and Trade and Fisheries.

The New Fleet Coastwatch Q200
(click to view full)

Under the new 2006 Project Sentinel contract, Cobham companies will provide, operate and maintain an updated fleet of Dash-8 aircraft through to the year 2021, starting in January 2008. The new service based on Bombardier Dash-8 aircraft will double the fleet to provide all-weather, day and night electronic surveillance of Australia’s maritime Exclusive Economic Zone.

The new fleet will change to 10 Dash 8 planes: 6 Q200 aircraft, plus 4 longer-range and larger Q300 aircraft. During the modification program, the Q300s were equipped with additional fuel tanks in the fuselage, providing an additional 4,000 lbs. of fuel capacity in addition to their standard long-range tanks. The Project Sentinel Dash 8 MSAs are equipped with the latest versions of Raytheon’s SeaVue radar, L-3 Wescam’s MX-15 EO system and a new SIM system based on Galileo Avionica’s “ATOS.” SIM will automatically capture and integrate surveillance information from these surveillance aircraft, and transmit in near real time between other aircraft and the National Surveillance Centre.

The Islanders and Aero Commanders were slated for retirement per CMS04’s “all electronic surveillance” guidelines, and the Cessnas may have been retired as well.

Project Sentinel will also operate some helicopters, in order to patrol key areas. Australia’s Customs and Border Patrol has contracted at least 1 Bell 412EP, 1 Eurocopter AS350B3, and 1 Eurocopter EC145 for these roles.

Improving the Fleet Mariner UAV Trial
(click to view full)

Australia’s border patrol authorities have been stretched by a flood of illegal fishing vessels, particularly from Indonesia. The influx has led to calls for the establishment of a state-based Coastguard in Western Australia. Meanwhile, more than 8,000 boats have been detected, resulting in at least 200 arrests. Fisheries officers have also expressed concern that the sophisticated radars used by Coastwatch aircraft and patrol vessels have difficulty picking up the small wooden boats used by Indonesian fishermen.

In order to keep Coastwatch capabilities up to date, the successful bidder will be required to improve detection capabilities over the life of the contract. Contenders had also been asked by Justice Minister Chris Ellison to use new technologies such as UAVs, advances in satellite imagery and new-generation radar to improve the reliability and range of Australia’s civil maritime border protection effort.

In 2006, Australia’s Ministry of Defence trialed pilotless spy planes to patrol vital North West Shelf oil and gas reserves off Western Australia. The General Atomics MQ-9 Mariner UAV was used, given the high-altitude, jet powered RQ-4B Global Hawk’s high cost and high demand. As a bonus, the Mariner uses the same SeaVue radar as Australia’s Dash 8s, which allows for good comparisons.

Australia is still debating its maritime UAV needs, and withdrew from the US Navy’s MQ-4C BAMS program in 2009. The withdrawal removes a potential shared asset, which could have helped supplement Coastwatch just as the manned AP-3C fleet does today. Meanwhile, in the trial’s aftermath there has been no movement on contracted UAV services like Mariner, or even Boeing’s smaller ScanEagle, to improve Coastwatch.

Contracts & Key Events 2007 – 2016

AS350 B3
(click to view full)

October 13/16: Australian Armidale-class patrol boats are to receive mid-life upgrades from firm Austal Australia. This month will see the commencement of work on the hull remediation, corrective maintenance and configuration changes of up to seven vessels at Austal’s shipyard in Henderson, Western Australia. Austal is currently providing in-service support to the Australian Border Force’s fleet of eight company-built Cape-class patrol boats and has been contracted to provide in-service support for 19 Pacific Patrol Boat Replacement vessels, which enter service from late next year.

Oct 29/12: Extension. Cobham has reached a GBP 105 million/ A$ 163 million agreement with the Australian Customs and Border Protection Service, to extend their existing Sentinel aerial maritime surveillance contract by 2 years. This extension secures the contract until the end of 2021. Cobham plc [PDF].

Oct 1/10: SATCOM certified. Cobham SATCOM announces that their SB800 SwiftBroadband (SBB) System has been certified on CoastWatch’s Bombardier Dash-8 aircraft. With the SB800, Immarsat’s satellite network can be used to transfer the aircraft’s video and other sensor data to a land base for fast analysis.

The SB800 system works with the Immarsat constellation, and consists of an HGA-7001 antenna, SDU-7320 dual-channel satellite data unit, DAU-7060 Diplexer/Low noise amplifier and HPA-7450 High power amplifier. Cobham touts it as the most compact dual channel, class 6 SBB system available on the market. Cobham plc [PDF]

July 3/07: Helicopters. A new Australian Helicopters Pty Ltd Eurocopter AS350B3 Ecureuil arrives, and will replace a Bell Longranger IV in the Torres Strait per the Aug 29/05 contract.

Australian Helicopters Pty Ltd has been operating the Coastwatch helicopter surveillance and response service in the Torres Strait since 1995. They’ll operate the AS350 alongside a Bell 412 twin-engine helicopter, which has been upgraded with new surveillance and communications equipment to provide enhanced capabilities. Australia CBP.

Feb 1/07: SIMS, Helicopters. Australia’s CBP welcomes the first upgraded Dash 8 202 aircraft into service under the Sentinel program, complete with improved surveillance technology.

They also announce that Italy’s Galileo Avionica has won the opportunity to supply the new Surveillance Information Management System for the Dash 8s. SIM will automatically capture and integrate surveillance information from surveillance aircraft, and transmit in near real time between other aircraft and the National Surveillance Centre. The first aircraft will be fitted in October 2008, and the rest will be upgraded over time.

Finally, a new Rapid Response Helicopter service will be based in Gove which brings a new capability to detect and respond to landings or abandoned vessels, and combat illegal foreign fishing in Australia’s north and offshore regions. Helicopters (Australia) will operate a new EC145 twin-engine helicopter from April 2008, but provide a BK-117-B2 helicopter as an interim solution from May 2007 – April 2008. Australia CBP.

SIM & Helicopter contracts

2004 – 2006

MQ-9 trials
(click to view full)

May-September 2006: MQ-9 UAV. Australia’s government announces a September 2006 trial across Australia’s North West Shelf region, using a General Atomics MQ-9 Mariner Unmanned Aerial Vehicle (UAV) and an Armidale Class patrol boat. Australian DoD release | Spacewar | DSTO mini-site.

May 2006: Australia’s 2006-07 budget proposal includes a number of measures to improve the protection of Australia’s northern borders, including an additional A$ 20.2 million to enable Customs to increase maritime surveillance flights over Australia’s northern approaches by 2,200 hours, and another A$ 338.9 million spread over numerous government agencies to combat illegal foreign fishing. See “Australia to Beef Up Northern Border Protection“.

March 6/06: Q300 order. Bombardier announces a $53 million order for 3 Dash 8 Q300 aircraft, from National Air Support of Adelaide, Australia.

In addition to the 3 new Q300 aircraft acquired from Bombardier, NAS will also purchase and convert 2 Dash 8s (1 Q200 and 1 Q300) from the existing fleet of sister company National Jet Systems. All 5 aircraft will then be delivered to Field Aviation Co. at Pearson International Airport in Toronto, Canada for conversion to maritime patrol.

Dash-8 Q300 MPA Interior
(click to view full)

March 3/06: Contract. Cobham plc signs the CoastWatch contract with the government of Australia. It’s a 12-year, A$ 1 billion deal.

To fulfill the CMS04 contract’s new requirement for “all electronic surveillance” from January 2008, Cobham notes that the fleet will be augmented to 10 Bombardier Dash-8 Maritime Patrol Aircraft (MPA): 5 upgraded Q200s, and 5 new Q300s, which are larger and offer longer range. Over time, the fleet will migrate toward this single fixed-wing type as other planes are retired. Each Dash-8 aircraft will be capable of searching an area of more than 110,000 km2 per flight, and the planes will operate from existing bases in Broome, Darwin, Horn Island and Cairns. Cobham plc.

Project Sentinel

Dec 7/05: Preferred bidder. Cobham is named as the Preferred Bidder for the 12-year, A$ 1bn Australian Coastwatch contract, beating Raytheon Australia. This isn’t a contract yet, but it means that negotiations with Cobham will be exclusive. Cobham plc | The Australian.

Aug 29/05: Helicopters. Australian Customs extends their relationship with Australian Helicopters Pty Ltd (AHPL), to provide another 12 years of helicopter surveillance and response service in the Torres Strait region. The new agreement is worth more than A$ 100 million over 12 years, and is also referred to as the Service B portion of the Civil Maritime Surveillance (CMS04) contract.

AHPL has been operating the Coastwatch helicopter surveillance and response service in the Torres Strait since 1995, with the current contract due to expire in June 2007. The new contract would begin in July 2007, and includes 1 new helicopter to replace the Bell Longranger IV in current service. Australian CBP.

CMS04 for helicopters

July 29/04: Extension. Cobham plc and the Australian government announce that the Coastwatch Civil Maritime Aerial Surveillance Contract held by their subsidiary, Surveillance Australia, will be extended to June 30/07 in an A$ 125 million deal. Surveillance Australia will re-compete the program beyond 2007.

CoastWatch has been operating since 1995, and Surveillance Australia’s fleet includes 5 Bombardier Dash 8 Q200 long range surveillance aircraft, 3 Cessna Reims F406 medium range surveillance aircraft, 6 twin-engine Britten-Norman Islanders, and 1 twin-engine Shrike aircraft. Cobham plc.

Additional Readings and Sources Coastwatch Australia

• Australian Customs Service – Coastwatch, An Overview (via Wayback Machine)

• CASR; Excerpts from a Canadian Senate Committee on National Security and Defence report – The Hon. Colin Kenny, Chair (July 2004) – Maritime Security: Lessons Learned from Other Middle-Power’s Approaches to Guarding the Coasts – Australia

• Australian Ministerial Paper, The Hon Peter Reith MP, Minister for Defence (October 2001) – Coastal Surveillance and Protection: a “US-Style” Coast Guard or the Australian Coastwatch?

Coastwatch Platforms

• Bombardier – Maritime Patrol and Search and Rescue

• Field Aviation – Case Study: Australia’s Coastwatch

• Cobham subsidiary Surveillance Australia. CoastWatch falls under the Special Mission category.

• Raytheon – SeaVue Overland and Maritime Surveillance Radar. It also operates on the MQ-9 Mariner used by US Customs and Border Patrol.

• SELEX Galileo – SIM Australia [PDF]

• L-3 WESCAM – The MX-15i. Surveillance turret.

• DID (Nov 18/05) – Australian Agreement re: A$ 1B+ AP-3C Orion Support & Upgrade Program. The RAAF’s AP-3Cs will support Coastwatch, as noted above.

• DID – P-8 Poseidon MMA: Long-Range Maritime Patrol, and More. Australia will buy this 737-derived MPA. Once it arrives, it will support Coastwatch, just as the AP-3Cs do.

• DID – Kicking it Up a Notch: Poseidon’s Unmanned MQ-4C BAMS Companion. Australia left the program in 2009, but could choose to buy this Global Hawk derivative later.

Additional Readings and Sources: Related

• CASR (July 2002) – Australia’s ‘Coastwatch’ – What Can Canada Learn?

• CASR – A Modest Proposal – SAR Aircraft: Rethinking Search and Rescue

• Australia Defence (Jan 10/08) – Aerosonde prepares for Coastwatch opportunities. UAV trial in the Torres Strait.

• DID (Dec 2/05) – Global Hawk UAV Prepares for Maritime Role

• Military.com – BORDERLINE: Unmanned Aerial Vehicles for Homeland Security. Includes Britain’s Watchkeeper & the USA’s Mariner.

Americas

• The USAF has tasked Boeing with selecting a supplier for a $198 million upgrade of the F-15C/D which will allow the fighter to detect at long range the heat generated by an aircraft engine. After selecting the infrared search and track (IRST) sensor supplier, Boeing will be tasked with integrating the pod with the F-15’s other systems, including the Raytheon-supplied active electronically scanned array (AESA) radar. By delegating such work, the USAF avoids giving losing bidders a chance to protest Boeing’s decision to the US Government Accountability Office (GAO).

• General Dynamics Information Technology reports they are to provide a range of mission support services to the US Special Operations Command. The multiple-award, indefinite-delivery/indefinite-quantity USSOCOM contract has a maximum ceiling value of $900 million over a five-year period. Under the deal, USSOCOM forces and their staffs will be provided with technical and management functions across the globe, including engineering and technical services for major weapon systems, program technical assistance, support systems requirements, production decision-making, and program controls assistance.

Middle East & North Africa

• Israel Aerospace Industries (IAI) has increased the endurance of their BirdEye 650D UAV to over 15 hours. Regarded as the most sophisticated of IAI’s family of small tactical UAVs, the newest version has been designed for use by tactical-level infantry units, but with a “stretched envelope” for increased performance. This increased endurance coupled with the variety of plug-and-play payloads, makes it suitable for civil, as well as military applications.

Africa

• Two AugustaWestland AW101 VIP helicopters have been handed over by the Nigerian government to their air force. The move comes during a round of cost cutting measures in an effort to reduce expenditures which has also seen two VIP jets put up for sale. Nigeria’s AW101s were originally two of 12 destined for the Indian Air Force, but diverted to Nigeria after the contract with India was cancelled over bribery and corruption allegations.

Europe

• Airbus struck back at the Polish government yesterday following the dropping of a multi-billion Caracel helicopter deal. In an open letter to the Prime Minister, the Aerospace giant accused the government of shifting the goalposts as Airbus competed with US and Italian rivals, and attempting to contravene European Union regulations. Speaking in a separate email, Airbus Group Chief Executive Tom Enders said “never have we been treated by any government customer the way this government has treated us.” Industry sources estimate Airbus’ cost of running the helicopter sales campaign at several tens of millions of euros.

• An initial batch of twelve CV9035 infantry fighting vehicles have been delivered to Estonia from the Netherlands. In late 2014, Estonia signed a $125 million deal for the provision of of 44 used Dutch CV9035NL IFVs and six Leopard 1 tank-based support vehicles. All the vehicles, which will be delivered by 2018, are to undergo maintenance and repairs before arriving in Estonia, the Estonian Ministry of Defense said. Norway will also supply 37 IFV CV90, which will be rebuilt as armored support vehicles, to Estonia next year.

Asia Pacific

• Dassault Mirage F1 fighters operated by the Iranian Air Force have successfully had their on-board oxygen generation system (OBOGS) refurbished for the first time. The work was carried out by the Overhaul Center of the Islamic Republic of Iran Air Force (IRIAF). In 2014, Tehran announced that its defense ministry had domestically produced a cruise missile system for its Mirage fleet.

• Japan’s military and aerospace industry will use this week’s Japan International Aerospace Exhibition to push the case to develop a highly advanced, and costly, stealth fighter jet. Dubbed the F-3, the program could cost Tokyo as much $40 billion to develop depending on specifications. Options open to the government include developing the costly fighter or opting for a more cost effective conventional fighter. In March, Japan’s Ministry of Defence issued a request for information (RFI) to gauge interest among foreign aerospace companies for jointly developing the F-3, which would operate alongside Lockheed Martin’s new F-35s and older F-15s.

Today’s Video

IAI’s Bird-Eye 650D:

Polish Mi-24
(click to view full)

Recent Russian aggression in the Ukraine has sharpened Poland’s awareness of its status as NATO’s new linchpin state, and an ambitious 10-year military Technical Modernization Program (TMP) is underway. The country’s open, rolling terrain from East to West is very friendly to cavalry warfare, which makes good attack helicopters a necessity. Poland’s current fleet of 29 late Soviet-era Mi-24D/Vs has served them well, but they need more and better machines. Unsurprisingly, the planned Kruk (“Raven”) attack helicopter replacement competition was one of the TMP projects targeted for acceleration in the wake of recent events.

Contracts and Key Events FY 2015 – 2016

T-129 ATAK
(click to view full)

October 12/16: Airbus struck back at the Polish government yesterday following the dropping of a multi-billion Caracel helicopter deal. In an open letter to the Prime Minister, the Aerospace giant accused the government of shifting the goalposts as Airbus competed with US and Italian rivals, and attempting to contravene European Union regulations. Speaking in a separate email, Airbus Group Chief Executive Tom Enders said “never have we been treated by any government customer the way this government has treated us.” Industry sources estimate Airbus’ cost of running the helicopter sales campaign at several tens of millions of euros.

October 11/16: France has reacted angrily to Poland dropping a multi-billion helicopter deal with Airbus, warning that it would review defense cooperation with its NATO ally and cancelling a presidential visit to Warsaw. Winning support as a populist, right-wing, eurosceptics, the ruling Law & Justice party (PiS) said they would rather see the deal awarded to a company that could build the helicopters locally. Polish media reports that Warsaw has already begun negotiations with Lockheed Martin’s Sikorsky, manufacturer of locally-produced Black Hawk helicopters that could be purchased by the Polish army as soon as this year.

October 8/15: Poland has progressed its competition to replace the country’s fleet of Mil Mi-24 attack helicopters, with talks scheduled to soon begin with the four bidders. The ‘Kruk’ (‘Raven’) competition has attracted bids from Airbus with the EC665 Tiger; Bell Helicopters with the AH-1Z Cobra; Boeing with the AH-64 Apache and Turkish Aerospace Industries with the T129 ATAK. Despite the Polish Defence Ministry announcing in April that a winner is due for selection by the end of the year, these talks are scheduled to last one week per company, concluding by the end of November and a contract is now expected in the latter half of 2017.

April 22/15: In addition to the Patriot announcement, Poland has selected the Airbus H225M to fulfill its tri-service helicopter requirement. 50 of the Airbus helicopters will replace the current 40-strong fleet of Mil Mi-17s; a figure revised down from the original requirement for 70 units. The H225M beat out AgustaWestland’s AW149 and Sikorsky’s S-70i Black Hawk and S-70B Seahawk, with the winning helicopter set to undergo checks this May and June to verify its capabilities against Poland’s requirement set. The Eastern European state is also looking to upgrade its attack helicopter fleet. Combined with the Patriot program, the helicopter procurement will account for approximately a quarter of Poland’s eight-year defense modernization budget.

Aug 5/14: The Polish defence ministry has said that it is considering bids from 10 manufacturers under the Kruk competition. They wouldn’t name names, saying only that it involved “foreign and domestic companies offering both ready-made helicopters and components for assembly.”

The difference between ready-made and assembly kits is a bidder’s choice, and the kits option is often used to comply with local industrial offset rules. The harder question is how to get to 10 manufacturers, given the limited number of attack helicopter options out there.

Obvious leaders include Airbus (EC665 Tiger HAD), AW/TAI (T129 ATAK), Bell Helicopter (AH-1Z) and Boeing (AH-64E). South Africa’s Denel offers the Rooivalk, which hasn’t been exported but has competed elsewhere. Sikorsky is working very hard to win Poland’s utility helicopter competition with the S-70i, which is the focus of that company’s 2nd largest helicopter plant. Their Battlehawk add-on kit could offer Poland a single-type force that’s able to perform both utility and attack roles. That’s 6 possible competitors; beyond this list, one must either stretch the boundaries of the term “attack helicopter” to incorporate armed scouts, or entertain far less likely options. Russian Helicopters’ Ka-52 and Mi-28 are absolute non-starters, but there are rumors that Poland’s MRO and upgrade shop WZL-2 S.A. has bid, and that Israel’s IAI and RAFAEL also responded. Sources: Polskie Radio, “10 bidders to modernize Poland’s combat helicopter fleet”.

July 8/14: Kruk program launched, deadline to respond to the RFI is Aug 1/14. The program was originally supposed to launch a tender in 2018, with deliveries beginning in 2020, but the tender has now been moved up to 2015. Quantities may also be changing: the program’s original goal was 32 helicopters, but current reports indicate that Poland may increase that to 40.

In the mean time, Phase 1 involves setting technical and operational requirements, following market research. Hence the RFI. Next comes a more detailed feasibility study and staffing requirements based on the responses, followed by the formal RFP in 2015. Sources: Polish MON, “Rusza program smiglowcow uderzeniowych” | Emirates 24/7 News, “Poland launches tender for assault helicopters” | Flightglobal, “Poland launches attack helicopter acquisition” | IHS Jane’s Defence Weekly, “Poland starts ‘Kruk’ attack helicopter acquisition programme”.

Additional Readings

Thanks for tips to: Lukasz Pacholski.

Potential Competitors

• DID – AH-64E Apache Block III: The Once and Future Attack Helicopter.

• DID – Snakes and Rotors: The USMC’s H-1 Helicopter Program. Includes the AH-1Z.

• DID – Armed & Versatile: Sikorsky’s ‘Battlehawk’ Helicopters. Based on the UH-60M/ S-70i. UAE was the launch customer, and Israel has tested a more extensive conversion.

• Airbus Helicopters – EC665 Tiger.

• Army Technology – Rooivalk Attack Helicopter, South Africa.

• DID – Turkey Finally Lands Its Attack Helicopters. The T-129 ATAK.

News & Views

• The Economist (July 26/14) – A front-line state.

• Reuters (July 15/14) – Airbus offers Poland core status in helicopter bid. Refers to utility helicopters (AW149 vs. EC725 vs. S-70i), but industrial considerations transfer over.

Americas

• Honeywell is working on improving the T55 turboshaft engine found on the CH-47 Chinook helicopter. Aimed at increasing its power efficiency by 25%, work has begun on developing a new improved compressor that would increase the T55’s engine power – from 4,700shp (3,500kW) to 6,000shp – and reduce fuel usage by 8%. The research coincides with Boeing’s Block 2 upgrade on the helicopter, which aims to increase its lost pay-load capability.

Middle East & North Africa

• The USS Mason, a US Navy guided missile destroyer, was targeted and attacked by missiles launched from Houthi rebel-controlled territory off the coast of Yemen. Both missiles launched during a one hour attack failed to reach the vessel instead falling short into the Red Sea. The incident comes just a week after a UAE vessel was hit by a Houthi anti-ship missile and the weekend bombing of a funeral by Saudi warplanes.

• Six German Tornado fighters, grounded last week over safety concerns, have returned to combating militants from the Islamic State. Issues with the planes were discovered last Thursday which involved loose screws that could not be properly tightened in some key cockpit equipment. The six jets are being used for surveillance flights out of Incirlik air base in Turkey near the Syrian border

Africa

• The Dutch government has said it will continue their peace mission in Mali in 2017 but will withdraw their helicopter contingent at the start of the year. As a result, the UN will be left struggling to find replacement aircraft. Potential supplier Canada has yet to commit and Germany, who has 570 soldiers stationed in Mali, are concerned that they may have to fill the gap.

Europe

• For those wanting a glimpse into the production of the Yak-152 then look no further. Russian journalist Felix Kondyor was given access to a small corner at Irkutsk where the trainer is being assembled.

• France has reacted angrily to Poland dropping a multi-billion helicopter deal with Airbus, warning that it would review defense cooperation with its NATO ally and cancelling a presidential visit to Warsaw. Winning support as a populist, right-wing, eurosceptics, the ruling Law & Justice party (PiS) said they would rather see the deal awarded to a company that could build the helicopters locally. Polish media reports that Warsaw has already begun negotiations with Lockheed Martin’s Sikorsky, manufacturer of locally-produced Black Hawk helicopters that could be purchased by the Polish army as soon as this year.

Asia Pacific

• South Korea is looking to add two more Boeing 737 AEW&C aircraft to their current fleet of four in order to boost operational capabilities. The increased number will also allow Seoul to use the aircraft as a deterrent against North Korea. However any acquisition will take time with a ministry source saying it could take up to five years for the necessary budget needed to start the project.

• Sources within the Philippine Foreign Affairs Department told reporters that the government is set to buy two military helicopters from Russia. Valued between $12 and $17 million, likely models being sought are the Mi-17 or the Mi-24. The same source added that Russia is willing to give deep discounts for the rotor-craft and offer extended payment schemes.

Today’s Video

Royal Air Force Eurofighters during exercises in Malaysia:

ROKAF E-737
(click to view full)

Other countries have criticized the USA’s ITAR policy for being as much about unfair trade competition as it is about genuine security. August 2006 events in Korea would certainly appear to strengthen their case… and a Nov 8/06 KOIS report put the final nail in by announcing a $1.6 billion contract “win” for 4 Boeing E-737 early-warning aircraft. Yet Boeing was always the ROK’s second choice, and its “win” came about by default.

A pair of December 2005 articles covered the $1.8 billion competition for South Korea’s E-X airborne early warning & control (AEW&C) aircraft, designed to detect incursions into ROK airspace and act as a sort of air traffic control for the air war. At the time, South Korea had no AWACS assets, relying solely on its allies; by 2012, it wanted at least 4 aircraft. In response, there were 2 main competitors…

The (Rail) Road to a Deal G550 CAEW
(click to view full)

Boeing’s E-737 “Wedgetail” AEW&C was matched up against an American-Israeli consortium of General Dynamics Gulfstream, L-3, & IAI Elta, offering a G550 CAEW platform based on the Gulfstream 550 long range business jet. It sold for about $400-500 million less overall, and was reportedly favored, but the need for US permission under ITAR to incorporate certain technologies was holding up the sale.

The items on the interference list hardly constitute unusual technologies, and are exported all the time:

• Data Links (Link 11 and Link 16/MIDS capabilities) for automatic data exchange with other aircraft, ground stations, air defense units, etc.;
  
• IFF (Identification Friend or Foe);
  
• The Satellite communications module;
  
• The UHF/VHF Have Quick Radio;
  
• GPS P(Y) code technology.

Eight months after the December 2005 articles, Boeing’s E-737 was selected. By default. After an announced competition delay in December 2005, an August 2006 news report noted that:

“Elta, a subsidiary of Israel Aircraft Industries, was dropped off as it failed to guarantee obtaining required export licenses from the U.S. government regarding key items to be installed on its product for the sealing of the contract, a DAPA [South Korea’s Defense Acquisition Program Administration] spokesman said.”

Industrial Team E-737 Cutaway
(click to view full)

Price negotiations followed, with a formal announcement taking place in November 2006. The ROKAF’s E-737s are based on the 737-700, and carry a flight crew of 2 and a mission crew of 6-10 people. Maximum range is listed as 3,800 nautical miles, with 9 hours time on station at an altitude of 30,000 – 41,000 feet.

Northrop Grumman Electronic Systems provides the Multi-role Electronically Scanned Array (MESA) L-band radar. It’s able to track around 1,000 airborne and maritime targets simultaneously, and can help the mission crew direct fighter aircraft while continuously scanning the operational area. It’s more advanced than the radars that equip current American AWACS planes, and the electronically steered beams mean that it doesn’t need the iconic rotating dome up top. Instead, the radar is fixed in a more aerodynamic housing that looks like a top hat.

Korean Aerospace Industries (KAI) will perform aircraft modification and mission equipment modification and checkout. Modification of the 1st aircraft took place at a Boeing facility, but KAI modified the remaining 3 aircraft in Saechon, Korea, and provides ongoing technical services, spares supply, and related parts-handling. Other Korean companies that made key contributions to the AEW&C program include:

• LIG Nex1: networking and training
  
• Samsung Thales: mission crew training.
  
• Boeing Training Services Korea: flight crew training
  
• Huneed Technologies: ground-based datalinks communications system.

Contracts & Key Events ROKAF “Peace Eye”
(click to view full)

October 11/16: South Korea is looking to add two more Boeing 737 AEW&C aircraft to their current fleet of four in order to boost operational capabilities. The increased number will also allow Seoul to use the aircraft as a deterrent against North Korea. However any acquisition will take time with a ministry source saying it could take up to five years for the necessary budget needed to start the project.

Oct 15/14: 2 more? China’s unilateral November 2013 declaration of an Air Defense Identification Zone, which includes some Korean territory, is pushing the ROK to upgrade its high end armed forces. At sea, they’re contemplating 3 more cruiser-sized AEGIS BMD ships. In the air, South Korea will buy aerial tankers to extend patrol and strike ranges, and…

“For surveillance over the KADIZ, we are seeking to secure two more such [Peace Eye] planes over the long term,” said an official at the Air Force, asking not to be named.”

Sources: Korean Herald, “Air Force mulls buying additional early warning aircraft”.

March 27/14: Support. Boeing has reportedly asked for WON 290 billion / $270 million to support the ROKAF’s E737 “Peace Eye” fleet from 2015 – 2018, which about double what the government had budgeted:

“We have requested that Boeing submit details of the technology support programs,” a ministry official said. “The ministry plans to sign a deal in August after cutting the price through negotiations.”

They may. On the other hand, the ROKAF has bought the planes, and they fulfill a very strategic role. It isn’t like they can afford not to come to an agreement. Sources: Yonhap, “U.S. demands sharp rise in price of F-15K’s sensor parts”.

Oct 24/12: Final Delivery. Boeing and KAI deliver the ROKAF’s 4th and final E-737 “Peace Eye” AEW&C, 5 weeks ahead of schedule. Boeing.

Final delivery

May 16/12: #3 delivered. Boeing delivers South Korea’s 3rd Peace Eye 737 AEW&C aircraft to ROKAF Base Gimhae, the main operating base for the Peace Eye fleet. This is the 2nd aircraft in the fleet to be modified into an AEW&C configuration by Korea Aerospace Industries (KAI) at its facility in Sacheon. Boeing.

Dec 13/11: #2 delivered. South Korea’s 2nd E-737, and the 1st modified by KAI, is delivered ahead of schedule to ROKAF Base Gimhae. Boeing Peace Eye program manager had high praise for KAI’s quality and technical expertise. KAI will modify 2 more planes in Sacheon, for delivery to the ROKAF in 2012. Boeing.

Peace Eye arrives
(click for video)

Aug 1/11: E-737 #1. South Korea’s 1st “Peace Eye” 737 AEW&C aircraft lands at Gimhae AB, about 450 km southeast of Seoul, with all modifications installed. The ROK DAPA says that:

“The first E-737 completed tests by our Air Force at Boeing’s factory in Seattle… It will go through test flights and acceptance tests before it’s handed over to our Air Force in early September.”

KAI’s Saechon facility is modifying the other 3, which will be delivered throughout 2012. Yonhap | JoongAng Daily | Korea Herald | Flight International.

1st “Peace Eye” delivery

Feb 4/10: Boeing delivers the first 737 AEW&C aircraft to South Korea for modification. The 737 lands at the Korea Aerospace Industries (KAI) facility in Sacheon, some 430 km southeast of Seoul, where it will be fitted with the electronics and equipment its role requires. Final ROKAF handover is expected in 2011. Defense News.

Dec 17/07: Sub-contractors. BAE Systems announces a $37 million contract from Boeing to provide mission computer system suites for the E-X program’s 4 E-737s, along with 3 software development labs to support development, integration, and training of the new mission computer system.

The mission computer suite consists of a computer processor with embedded map server and flight-deck tactical display. The suite’s architecture is derived from the telecommunications industry, and provides all central mission computing, mass data storage, and high-speed local-area network capability. It also features a communications control processor that provides interfaces to all aircraft sensor and communication subsystems. BAE believes that using a telecom architecture offers lower weight and cost, while offering increased processing capability and a path for future technology insertion.

In its release, BAE Systems also claims that this development of telecom computer architecture for military use is among the first military applications of this technology.

Nov 8/06: Boeing announces the $1.59 billion contract for four 737 airborne early warning and control (AEW&C) systems. The contract also includes ground support segments for flight and mission crew training, mission support, and aircraft and system modification support. Delivery of the 1st 737 AEW&C aircraft under the Foreign Military Sale “Peace Eye” program is scheduled for 2011. The remaining 3 aircraft are scheduled for delivery in 2012.

Nov 8/06: That announcement took until November, but it has come. The ROK’s Defense Acquisition Program Administration (DAPA) announces that DAPA’s supreme committee chaired by Defense Minister Yoon Kwang-ung had formalized the decision, and signed a $1.6 billion contract with Boeing for its E-737 aircraft under the “Peace Eye” Foreign Military Sale program.

Peace Eye contract

Op Ed/ Analysis (August 2006)

Security restrictions on military technology transfers, and even political restrictions, are not uncommon for Western countries. The breadth of US global interests, and the importance of interoperability with allies, place the USA in a unique position. The demands of that position require careful balancing and the appearance of scrupulous fairness, however, or the result will be a series of “wins” that actually erode both the USA’s allied interoperability and its global clout over the long term.

Two other items in our Aug 4/06 coverage offer excellent illustrations of these imperatives in action.

We’ll begin with the F-35 Lightning II Joint Strike Fighter, one of the largest military programs in the world with estimates as high as $279 billion. A recent deal between the USA and Britain forestalled an impasse that could have led to the unraveling of much of the international consortium, increased costs per aircraft, and left a serious cloud over the export potential that’s essential to the F-35’s long term business case. Note that one of the key issues was the ability to create third-party add-ons. Integration of foreign equipment without requiring US say-so was another. The fact that those were 2 of the 3 major issues is telling in and of itself.

Fortunately, high-level diplomacy conducted in a spirit of fairness appears to have headed a major dispute off at the pass.

Next, note our coverage of the (canceled) Venezuela deal for 12 EADS-CASA transport aircraft from Spain. Regardless of whether or not one agrees with the restriction or its rationale, there can be no question that the lost sales will be keenly felt on a political level due to lost jobs in Spain, even though EADS’ corporate parent may see it as an acceptable trade for access to the US market. A major and separate deal from Brazil for its Super Tucano aircraft was also blocked – this time, with no offsetting consolation either economically or politically.

The result must inevitably be resentment, in both locations. The fact that the USA has a consistently expressed security concern with the country in question will be a mitigating factor, because at least the decision is not seen as utterly capricious. To some extent, the USA must simply pay this price as part of the policy cost of working to make Venezuela’s arms build-up more difficult – though our Feb 14/06 “Love on the Rocks” article did note that the US had options that would have both furthered its own global objectives and cushioned the blow in Brazil.

It may eventually wish that it had pursued those options. While EADS is now tied to the US market by golden handcuffs, Embraer and many European companies who lack such ties may well be thinking hard about minimizing future US technology inputs in their products. This may be an acceptable cost if the USA considers its Venezuelan policy goal important enough, but it will chip away at the edges of future US influence in such sales by providing it with fewer opportunities to invoke ITAR export restrictions. As a mitigating factor, crossing the USA on issues it considers highly important is always understood to have costs. Unless one plans in advance to sell to rogue regimes, therefore, the Venezuelan example is unlikely to fuel a big “buy any except American” dynamic because of the effort, expense, and possible cost to buyer appeal of going with substitutes.

Which brings us to the Korean E-X competition. Whether or not ITAR was in fact deliberately used to hinder a competitor that included non-US firms, that is certainly the appearance. This, we submit, is the most damaging possible message – especially because it confirms a widespread but quiet suspicion within the international defense industry.

If the issue is simply that one should hesitate before crossing the USA on major foreign policy issues (Venezuela), or that pressure is required to make the USA do the right thing (F-35), that is one thing. If the issue is that using American technologies will cut one’s export potential across the board because it will be used against you in competitions, that’s a very different kettle of fish. That perception would be material enough to affect the calculus for major items like engines and electronics when developing new platforms. If it does, the result is fewer ITAR levers for the USA, less compatibility with foreign designs, and a long-term loss of work in its defense sector to offset the more visible short-term wins.

Note also the technologies that became sticking points in the E-X sale: GPS. Link 11 and Link 16/MIDS. IFF. Minor technologies all, which became broad and important allied standards under US/NATO leadership.

As the EU prepares its own rapid deployment forces as a clear parallel force to NATO, and pursues global projects like the Galileo GPS satellite constellation, they are already likely to push for more “made in Europe” interoperability standards, as opposed to US/NATO specifications. They will be built for interoperability with American equipment, of course, or at least trumpeted as such – but they will also be built to allow solo operation.

It will be much easier to get countries and firms to go along with independent standards, if they see them as a hedge against unfair American export competition. In addition, the creation of a market for such technologies is likely to create a production base of minor players who can step in as substitutes for other components down the chain, without worrying about the potential effect on their own (nonexistent) US exports.

Countries, and companies, understand security concerns. They also understand the requirements of geopolitics. So long as their opinion of one’s geopolitics is that it lives within the realm of reason, geopolitical effects on production decisions will be minimal. The appearance of undue advantage or exploitation of those security concerns as a front, however, will not be understood or accepted. If that view becomes prevalent, the result will be a long-term set of changes in the market that make any short term wins a pyrrhic victory indeed.

In our opinion, the USA needs to take a hard look at its ITAR processes, and the way they are being handled. Other countries and firms around the world are already doing so – and their gaze is not friendly.

Additional Readings

• Boeing – 737 Airborne Early Warning And Control. Currently based on the 737-700.

• Lexington Institute (Oct 3/12) – Modernizing the Air Force’s Electronic Aircraft Fleet [PDF]. Advocates replacing all current USAF E-3s with E-737 AEW&C planes, restoring the fleet while saving maintenance costs.

Export Control Issues

• DID – USA Moves to Improve Arms Export Regulation Process. Better late than never, but the problem described here goes deeper.

• DID (July 31/07) – US Industry Associations Pushing to Reform Export Controls. But for whose benefit?

• Aviation Week’s Ares (June 5/07) – US Technology? No Thanks!
  

“The only way to resolve technology access and U.S. government export restrictions imposed by ITAR is by “not including any U.S.-sourced technology into our products,” [Dassault CEO Charles Edelstenne] the President of the Aerospace and Defense Industries Association of Europe (ASD) said yesterday… In the context of space programs, steps are already being made towards completely excluding U.S. input in order to stay clear of the ITAR restrictions, adds Francois Gayet, the permanent Secretary-General of the ASD…”

• DID (Feb 14/06) – Love on the Rocks: CASA’s $600M Venezuelan Plane Sale In Heavy Turbulence. A good example of export controls at work – but even when the security concerns are legitimate, they can generate unwanted backlash unless they’re handled carefully. This case illustrates both sides of that coin.

Americas

• Canada’s Air Force will request $379 million from the government in order to fund the upgrade of avionics on its CF-18 fighters. Once installed, the modernization will keep the fighters flying until 2025, giving leaders in Ottawa some much needed breathing room on making a decision on the aircraft’s eventual successor. First bought in 1982, almost $2 billion has been spent on upgrading the fighters since 2001. (Values in USD)

• The US government, along with 44 other nations, has signed a joint declaration on the “Export and Subsequent Use of Armed or Strike-Enabled Unmanned Aerial Vehicles (UAVs).” Signatories promise to “ensure the responsible export and subsequent use of these systems” as misuse of these UAVs could fuel conflict and instability, and facilitate terrorism and organized crime. The declaration said none of the principles were meant to undermine a country’s legitimate interest in producing, exporting, or acquiring such systems.

• General Dynamics Land Systems has unveiled their medium-weight tracked vehicle demonstrator, the Griffin, at the Association of the US Army (AUSA) 2016 Annual Meeting & Exposition. Combining elements of the turret and 120mm cannon from their M1A1/M1A2 Abrams main battle tank and the Ajax Scout Specialist Vehicle, the Griffin is being offered by GDLS as a “conversation starter” for the US Army’s Mobile Protected Firepower (MPF) program. Speaking to IHS Janes, Mike Peck, GDLS’ head of business development, said the company could respond to army feedback with a revised platform within about 9-12 months.

Middle East & North Africa

• Joran’s King Abdullah II Special Operations Training Center (KASOTC) compound is playing host to Iraqi officers training under a NATO-led scheme to build a more stable, permanent cadre of squadron leaders. The six week course, involving both classroom and live-fire training exercises, comes at a time when the Iraqi government gears up for its assault on the city of Mosul, held by the Islamic State since June 2014.

Europe

• Poland has dropped plans to purchase H225M Caracel military helicopters from Airbus. The move was revealed by the Ministry of Economic Development, citing the cessation of negotiations with the company over potential offsets, and indicating that the Ministry of Defense was backing away from the $3.5 billion sale. Warsaw’s new government is instead leaning to offerings off Lockheed Martin’s Black Hawk and Leonardo’s AW149 helos, which come with greater offsets and production at domestic subsidiary facilities.

• Airbus has successfully demonstrated their C295W transport aircraft as an aerial tanker. Equipped with a palletized air-to-air refueling unit and associated computer control system, the aircraft conducted multiple contacts with a Spanish air force C295 aircraft during a test flight on September 2. Further trials with a helicopter receiver are planned before the end of the year and work is underway to eventually refuel UAVs. Future applications for the C295W include special operations and extending search and rescue aircraft range.

Asia Pacific

• The Philippine Air Force is to launch its fourth bid in two years to procure a close-air support (CAS) platform to replace its OV-10. A request for proposals (RFP) is expected in the coming months with Embraer’s Super Tucano tipped as the hot fave to win the competition. Previous attempts to acquire new CAS aircraft have fallen short as potential bidders failed to meet the requirements.

Today’s Video

Don’t Call It A Tank! General Dynamics’ Griffin:

Americas

• AM General has been awarded a $151 million contract to provide High-Mobility Multipurpose Wheeled Vehicles (Humvees) to Afghanistan, Ukraine, and the US National Guard and Reserves. The deals cover new vehicles, automotive kits, spare parts, and training. Afghanistan will receive 360 M1152A1B2 and 73 M1151A1B1 variants while Ukraine and US forces will receive 40 M1152 and 237 M997A3 ambulance vehicles respectively.

• In order to fill a capability gap before the introduction of what comes from the Future Vertical Lift (FVL) program, the US Army is considering a new block upgrade of the AH-64 Apache attack helicopter. This new AH-64F variant will have an improved radar, forward-looking infrared sensor, and a new helmet, according to Col. Jeff Hager, the service’s program manager. However, a better look at the time frame for FVL’s introduction will be necessary in order to judge the need for a full block upgrade.

Middle East & North Africa

• Three US Navy warships have been dispatched to the coast of Yemen following an attack on an Emirati HSV-2 by Houthi forces. The USS Nitze (DDG-94), USS Mason (DDG-87) and the afloat forward staging base USS Ponce (AFSB(I)-15) are now stationed near Bab Al Mandeb strait where the missile attack took place. Prior to its use by the UAE, the HSV-2 was once used by US Military Sealift Command.

Europe

• A pooling initiative is to commence between the French and German defense ministries for the purchase and joint use of C-130J transport aircraft following the signing of a declaration of intent in Paris. Berlin announced plans to purchase between four and six of the aircraft from Lockheed Martin which would be added to those recently ordered by France. The move is part of a solution to fill a German cargo and transport aircraft capability gap caused by delays and limitations of the larger A400M from Airbus and the retirement of their older Transall cargo planes.

• Raytheon and Kongsberg have successfully test-fired an extended range version of Raytheon’s Advanced Medium-Range Air-to-Air Missile (AMRAAM) from the National Advanced Surface-to-Air Missile System (NASAMS). By simply pairing the sensor from the AMRAAM to an Evolved Sea Sparrow missile (ESSM) the new variant gives a 50% in maximum range and 70% in maximum altitude. Modifications undertaken to accommodate the new missile include extending the top row of three canisters by a foot, and Raytheon is targeting first deliveries of the missile in the 2020 timeframe.

• A lack of orders alongside a complex production process has seen production of the Eurofighter Typhoon suspended and potentially removed from the German market, at least until 2018. A joint European offering, the Typhoon receives components manufactured at four plants in Germany, Britain, Italy and Spain, which makes the production very complicated and expensive. It’s believed that Spain may soon follow in suspending production but production lines are likely to remain open in Italy and the UK. This is due to orders arranged between Italy and Kuwait as well as UK ambitions to shift Eurofighters to Saudi Arabia.

Asia Pacific

• Disclosures made by a South Korean lawmaker have revealed that the two Green Pine radars bought from Israel’s Elbit Systems have been failing repeatedly. Data submitted to Rep. Lee Chul-gyu showed that the radars have stopped working 21 times over the past three years which resulted in the anti-ballistic missile radars being out of operation for up to nine days at a time. An anonymous air force official said the reason was because moisture entered the radars, condensing inside the antennae. A temporary solution by the service was to install air conditioners inside the units and plans are in motion to house them inside “radomes” next year.

• India is anxious to close a number of defense and nuclear related deals with the Pentagon as the Obama administration enters its final months. Deals including the purchase of 22 MQ-1 Predator UAVs are in advanced stages of negotiations and should be finalized within the coming months. But with a potentially radical regime change on the cards in Washington, New Delhi may want to capitalize on the good relationship between leaders Modi and Obama as the prospect of an “America First” Trump administration may spark a US pullback from Asia.

Today’s Video

Elta’s Green Pine:

Americas

• Lockheed Martin is to upgrade a target acquisition and vision sensor aboard US Army AH-64E Apache helicopters. The upgrade to the Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor, or M-TADS/PNVS on the AH-64E was commissioned by the Army under a $49 million contract. Lockheed said that under the award it will produce an additional 42 Modernized Day Sensor Assembly upgrade kits and spares for the US Army as part of Lot 1 production at two of its facilities in Florida.

Middle East & North Africa

• A second batch of mine-resistant ambush-protected vehicles have been delivered to Egypt under the US Excess Defense Articles grant program. While the exact number of vehicles delivered remains unknown, the original shipment contained 762 MRAPs. First used for US operations in Afghanistan, the vehicles will give enhanced levels of protection to Egyptian soldiers tackling Islamist militants in the Sinai desert.

• Regional changes and increased demand has Israel looking for more airborne early warning, communications intelligence and electronic intelligence aircraft. It’s believed that the newly agreed 10-year $38 billion foreign military financing package from the US may facilitate the needed acquisition, which will add to the Gulfstream G-5 Shavit COMINT/ELINT aircraft and G-550 Eitam AEW aircraft that are in service. An IAF source said that the radar and other systems that are installed in the two types have been upgraded, and now have an improved performance.

Europe

• The Ukrainian state-owned Kiev Design Bureau released footage of the successful test of their Sarmat anti-tank guided missile. Sarmat missiles form part of a module mounted on jeeps and can engage tanks, motionless helicopters, sea vessels, and ground forces. Its smaller version has a maximum range of about 8,200 feet, and the larger variant has a range of about 16,400 feet.

• An enhanced production version of the Airbus A330-200-based multi-role tanker transport (MRTT) has made its maiden flight in Spain. Manufacturer Airbus stated the aircraft – already carrying its advanced refuelling boom system and under-wing hose and drogue pods – “performed in line with expectations”. The enhanced model represents the new build standard that also will be delivered to other future customers of the MRTT, which currently include France, South Korea, and a consortium of NATO members.

Asia Pacific

• Philippine hardman Rodrigo Duterte has continued his war of words with the Pentagon, saying he doesn’t need to buy arms from US manufacturers. Telling US President Barack Obama to “go to hell”, Duterte continued with “If you don’t want to sell arms, I’ll go to Russia. I sent the generals to Russia and Russia said ‘do not worry, we have everything you need, we’ll give it to you'”. His comments were the latest in a near-daily barrage of hostility toward the United States, during which Duterte has started to contrast the former colonial power with its geopolitical rivals Russia and China.

• Singapore remains interested in purchasing the F-35, however it won’t be until a 2030s timeframe. While the country has long been linked to the F-35 program, Defense Minister Ng Eng Hen said his country’s crop of F-15s and F-16s will “last us well into the next one or two decades.” This is backed up by last December’s $914 million award to Lockheed Martin to upgrade Singapore’s 60 plane F-16 fleet, with work occurring through 2023.

• Two more H225M helicopters are on their way from Airbus with Thailand looking to add to the existing fleet of four of the twin-engined type operated by the Royal Thai Air Force. Delivery of the two Caracals is due in 2019, and will be preceded by another pair due to be handed over this year dating from a 2014 order. The H225Ms will be used on a variety of missions including combat search and rescue, and troop transportation.

Today’s Video

Highlights from North Korea’s first airshow:

Cougar 6×6, IEDed
– the crew lived.
(click to view full)

With the acquisition of Force Protection by General Dynamics in November 2011, future purchases will be covered under “General Dynamics MRAPs: Partners and Purchases.”

The Cougar family of medium-sized blast-protected vehicles is produced in both 4-wheel (formerly Cougar H) and 6-wheel (formerly Cougar HE) layouts. Eventually, the wisdom of using survivable vehicles in a theater where land mines were the #1 threat became clearer, and these vehicles have gradually shifted from dedicated engineer and Explosives Ordnance Disposal (EOD) roles to patrol and route-proving/ convoy lead functions as well. Related variants and blast-resistant designs are also produced in response to country-specific requirements (Wolfhound, Mastiff, Ridgeback, ILAV Badger) and other designs cover different operational needs (Buffalo mine-clearance, Cheetah, Ocelot, and JAMMA patrol vehicles). To date, the firm has received orders from Britain, Canada, France, Hungary, Italy, Iraq, and Yemen; and Poland operates some on loan from the USA. Front line testimonials offer evidence of their effectiveness.

Cougar orders predate the USA’s MRAP program to rush mine-resistant vehicles to the front lines; indeed, the performance of Force Protection’s vehicles on the front lines was probably the #1 trigger for the MRAP program’s existence. This FOCUS article describes Force Protection’s vehicles and corporate performance, which became an issue in recent years. It also covers key events and procurements around the world related to Force Protection’s Cougar (MRAP CAT I & II), Buffalo (MRAP CAT III), and related blast-resistant vehicle families.

The Cougar Vehicles Cougar 4×4
(click to view full)

Unlike the Hummer, Cougar vehicles are designed to withstand a 30-pound blast of TNT to either the front or rear axles, or a 15-pound blast to the center portion of the vehicle. Ballistic protection is also installed for the radiator, fuel tanks, and battery compartments. Each vehicle is equipped with weapons ports, a M-240G machine gun mount, engineer/ Explosive Ordinance Disposal tool storage, 2 spare tires, and a Nuclear, Biological and Chemical overpressure and filter system that also works very well as air conditioning. As their site puts it, 4 full inches of ballistic glass in the viewing ports et. al. “help you see what hit you.”

These are not small vehicles. The Cougar is substantially larger than a HMMWV, with heavier armor and features like a V-hull designed specifically to help it survive mine blasts. As the amusing web page by manufacturer Force Protection puts it: “Drop your purse, it’s not a Hummer.”

The M1114 up-armored Hummers have an empty “curb weight” of around 9,000 pounds, and a top weight of about 12,000 pounds. The comparable Cougar 4×4 MRAP CAT 1 weighs 31,000 empty (“curb weight”), with a maximum recommended weight when fully loaded of 38,000 pounds (“gross vehicle weight, or GVW). It usually carries 4 troops, plus the front 2 seats.

Cougar 6×6
click to play video

The larger Cougar 6×6 MRAP CAT II has a curb weight of 38,000 pounds, and a GVW of 52,000 pounds. They can carry 8 troops plus the front 2 seats, These vehicles can be customized for multiple tasks including troop transport, mine and explosive ordnance disposal, command and control, reconnaissance and as a lead convoy vehicle.

An even larger and more awe-inspiring relative, the Buffalo, is also deployed in Iraq and Afghanistan as a mine-disposal vehicle. Its signature feature has given it a nickname: “The Claw.”

Testing, testing…
(click to view full)

The Cougar family’s added weight, and designed-in protection, make a difference. As one June 2007 USMC.MIL story describes it:

“I’ve had two IEDs go off on me in the last two weeks,” said [Staff Sgt. Timothy Kessler of C Company, 2nd Combat Engineer Battalion, Regimental Combat Team 6], whose unit has been hit at least six times so far since the beginning of his tour. The largest explosion detonated under the right front tire of the vehicle.

“It blew my fenders off, it blew the front bumper about 30 meters away. We never did find the fenders, but all the Marines inside the vehicle were OK.”

“The other blast was again under the right tire. We sustained minor damage and it fragged my window up a little bit,” said Kessler.

Although the MRAP vehicle Kessler was riding in survived the attacks, it is very likely that a humvee would have sustained catastrophic damage.”

Cougar interior
(click to view full)

On March 1/07, the Cougar’s success in theater led The Commandant of the US Marine Corps, Gen. James Conway to submit a Memorandum to the US Joint Chiefs of Staff [PDF]. It traces the history of program growth for MRAP vehicles, including a significant acceleration in 2006 from a request for 185 vehicles in May to 4,060 vehicles by November. It listed MRAP vehicles as his #1 unfunded priority, and added that:

“Based on the recognition of significantly reduced lethal and severe injuries in MRAP vs. the HMMWV, on 2 January 2007, commander, MARCENT requested support for a policy change that would provide MRAP level protection for all Marines operating outside the wire in MNF-W[1] . Under this policy, limited use of Armored HMMWV’s [sic] will be authorized in specific tactical situations where the operational characteristics of HMMWV are required. On 6 February 2007, the MROC (Marines Requirements Oversight Council) validated a Marine Corps requirement of 3700 vehicles in support of this policy.”

The USMC subsequently requested 3,700 vehicles under the 7,774-vehicle MRAP program (since expanded to 15,274 and then 15,771). They remain the lead acquisition service for MRAP, but Force Protection slipped from the US military’s #1 provider to #3 – and only became a more distant 3rd place as the competition continued. US MRAP candidates and orders included:

Manufacturer CAT I CAT II Notes Navistar MaxxPro
MaxxPro AF
MaxxPro Dash

MaxxPro Plus MaxxPro Top finisher in number of MRAP orders. BAE Systems RG-33
RG-33 SOCOM
Caimin RG-33L
RG-33-Ambulance
Caimin

Won MMPV with RG-33L derivative.

Force Protection Cougar 4×4 Cougar 6×6 Buffalo MRAP CAT-III sole-source. Also received orders before MRAP began. General Dynamics RG-31 Mk.5/ RG-31A2 RG-31 Mk.5E Partnered with BAE OMC, Canadian government CCC. Also received orders
before MRAP began. Oskkosh Alpha
(w. PVI) Bushmaster
(w. Thales) No MRAP orders, but sole winner of related M-ATV program with its own
design. PVI Alpha
serve w. US Border Patrol Golan
(w. RAFAEL) Alpha failed MRAP testing; 2008 firm bankruptcy & fire-sale acquisition Textron M1117 ICV M1117 ICV Failed MRAP testing; no MRAP orders, but ASV variant widely ordered by Military Police and fire targeting units.         FP’s Cheetah:
a big hill to climb
(click to view full)

In order to maintain its momentum, Force Protection would need another success. It had invested some of its earnings to develop a smaller, lighter vehicle called the Cheetah. Weighing in at just 14,000 pounds empty, its size (89″ tall x 88″ wide x 212″ long) and mass allow a CH-53 helicopter to lift it from ship to shore, and also offer easier transport in amphibious ships. A cruise speed of 75 mph helps the Cheetah live up to its moniker, while its turning radius of 30 feet gives it the ability to maneuver in confined spaces like urban battlefields. Lighter, smaller vehicles do mean less protection, even with a v-hull design. Nevertheless, Force Protection claims that the Cheetah can withstand a 15 pound/ 7 kg TNT blast anywhere under the vehicle, 30 pounds/ 13.65 kg under the wheels, or 50 pounds/ 22 kg if detonated 6.5 feet/ 2 meters to the side.

The firm saw the Cheetah as its future, and several customers expressed interest or undertook evaluations. With funds and attention devoted to larger MRAP class vehicles, however, no-one bought any. Force Protection’s real goal was the JLTV program, which would replace many of the US military’s Hummers and could see orders for 60,000 or more vehicles. Cheetah had been ready for some time, much earlier than its competitors; its failure to secure an initial stage JLTV development contract in late 2008 was a shock to the firm. In response, Force Protection expanded its Force Dynamics alliance with General Dynamics to include the Cheetah, in order to compete for interim-buy MRAP-ATV contracts that seek lighter blast-resistant vehicles.

Unfortunately, that fell through as well, leaving the Cheetah with no initial customer.

FP’s JAMMA
(click to view full)

Efforts to develop vehicles for foreign customers have been more successful. Distinct Cougar 6×6 variants serve with Iraq as the ILAV/Badger, and with the British Army as the more heavily protected Mastiff or Mastiff 2. The British also operate smaller 4×4 “Ridgback” variants. The British also worked with Force Protection to develop a specialty 6×6 flatbed truck version called the Wolfhound, then served as the variant’s lead customer. Read “UK Land Forces Order Cougar Family Vehicles” for more.

Another follow-on vehicle called the JAMMA is optimized for Special Forces use, and has the distinction of being transportable in the V-22 Osprey‘s low compartment.

Ocelot modularity
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A British partnership has also developed the Ocelot, an entirely new vehicle design in the Cheetah’s weight class. Force Protection claims that its Ocelot exceeds the required LPPV mine protection level and offers protection similar to the 6×6 Mastiff Cougar variant, while still meeting LPPV targets for mobility, payload, size and gross vehicle weight. It is now the preferred bidder for that contract, continuing its remarkable strak of success in Britain.

Ocelot is a modular design with a core automotive armored spine or “skateboard,” and a composite special-to-role pod. Center of gravity is low, as all the heavy items are contained within the V-shaped skateboard: the Steyr 3.2 litre straight six diesel powerpack, propshaft, 6-speed ZF gearbox, AxelTech differentials, fuel tank and all the suspension gear, except for a torsion bar which is mounted alongside the hull. The V-shape design results in the running gear not intruding into the crew area, making movement from front to back easier and improving protection levels. Bulkheads between vehicle crew and dismounts, and between crew and electronic equipment such as radios and jammers, give added protection. Current add-on pods include patrol, fire support, or protected logistics vehicle, and the patrol vehicle pod seats 2 crew and 4 dismounts. The pods can be swapped out in the field as the need requires. Access is through large rear doors, 2 top hatches, or an oversize commander’s door. Ocelot can reportedly be airlifted in a C-130 Hercules aircraft, or even a CH-47 Chinook heavy-lift helicopter.

Winning either the British LPPV or Australia’s Overlander PMV-L competitions would allow Ocelot to establish a solid foothold in the light patrol vehicle market.

Cougar Family: Related Contracts & Events Wolfhound TSV
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With the acquisition of Force Protection by General Dynamics, future purchases will be covered under “General Dynamics MRAPs: Partners and Purchases.”

Unless otherwise indicated, all contracts are issued by the Marine Corps Systems Command (MARSYSCOM) in Quantico, VA to Force Protection Industries Inc. in Ladson, SC. Note that many maintenance contracts are connected with specific American MRAP Program delivery orders. The first order was for test vehicles; subsequent orders under that contract (M67854-07-D-5031) include:

#002: 60 CAT I Cougar 4x4s and 65 CAT II Cougar 6x6s
#003: 300 CAT I and 700 CAT II
#004: 395 CAT I and 60 CAT II
#005: 25 CAT I and 100 CAT II
#006: 553 CAT I and 247 CAT II
#007: 178 CAT I and 180 CAT II
#012: 1,862 vehicles: Oshkosh TAK-4 suspension kits

These listed orders do not count Buffalo MRAP Class III mine-clearance vehicles, which are sole-sourced, or orders outside the USA. Both of those order types are covered below as they happen.

October 5/16: A second batch of mine-resistant ambush-protected vehicles have been delivered to Egypt under the US Excess Defense Articles grant program. While the exact number of vehicles delivered remains unknown, the original shipment contained 762 MRAPs. First used for US operations in Afghanistan, the vehicles will give enhanced levels of protection to Egyptian soldiers tackling Islamist militants in the Sinai desert.

Nov 7/11: General Dynamics Land Systems, who has partnered with Force Protection to build the Cougar MRAP, takes the next step, as the parent firm agrees to buy Force Protection, Inc. for $5.52 per share of common stock, or approximately $360 million.

The move gives General Dynamics a lineup of blast-resistant patrol and de-mining vehicles to call its own, which is something the firm has never had. Force Protection | General Dynamics.

Nov 7/11: Force Protection announces its Q3 2011 financial results.

For Q3 2011, the firm reported net sales of $143.6 million (Q3 2010: $176.3M), but a 22.3% gross margin (Q3 2010: 19%) and the absence of an $8.5 million settlement help the firm return to profitability. Operating income was $6.8 million (Q3 2010: -1.9M, or $6.9M without settlement), and net income was $4.5 million.

Nov 1/11: Force Protection announces a $185.9 million firm-fixed-price contract modification from US Army TACOM for another 167 Buffalo A2 Mine Protected Clearance Vehicles, and 102 Buffalo A2 (LROD aluminum) Bar Armor Kits. Work is to be performed in Ladson, SC, with deliveries extending to April 2014 (W56HZV-08-C-0028).

In their release, current CEO Michael Moody also cites Full Material Release and authorization to proceed to Full Rate Production for the Buffalo program. Their release comes 8 days ahead of the Pentagon’s own contract announcement, for reasons that soon become clear.

Sept 23/11: A $16.9 million firm-fixed-priced contract modification for 961 fuel protection kits, and 8 sets of MRAP Capability Insertion Enhanced and Inspect or Repair only-as-necessary tools. Work will be performed in Charleston, SC, and is expected to be complete no later than March 30/12. $5.3 million will expire at the end of the current fiscal year, on Sept 30/11 (M67854-07-D-5031). See also Force Protection.

Sept 1/11: Force Protection and CAE formally bid a modified Cougar 6×6 “Timberwolf” for Canada’s TAPV competition.

Aug 24/11: Force Protection bids a variant of its Ocelot vehicle for Australia’s Special Operations Vehicles – Commando (Project JP 2097 Phase 1B/ REDFIN competition. The Ocelot is also getting a look as part of Australia’s Overlander program, Phase 4, as a Protected Mobility Vehicle – Light (PMV-L) competitor.

Aug 5/11: Executive shuffles. Force Protection makes a a couple of leadership moves. Philip Ciarlo becomes Chief of Operations, after serving as VP, Sourcing at Lockheed Martin Mission Systems and Sensors. He also spent more than 20 years in GE.

COO Randy Hutcherson goes back to his roots as Chief of Business Development, a new position for the company. He joined Force Protection in 2009 as EVP, Programs, Global Sales and Business Development, after a career at EADS North America that included their aerial tanker bid. CEO Michael Moody said that:

“We have several large programs we are pursuing in which important customer decisions are expected in the coming months and expect that further requirements for the Company’s products and services are likely to be defined in the near to mid-term.”

June 29/11: A $63.8 million firm-fixed-price contract for 56 Buffalo A2 mine-clearance vehicles, and 56 accompanying bar armor kits. Buffalos use BAE’s LROD aluminum bar armor kit.

Work will be performed in Ladson, SC, with an estimated completion date of Nov 1/12, though Force Protection expects to have them all built by July 31/12. One bid was solicited with one bid received by the U.S. Army Tank-automotive and Armaments Command (TACOM) in Warren, MI (W56HZV-08-C-0028). Force Protection release.

June 23/11: A $7.5 million firm-fixed-price contract modification for a 6-month renewal of 55 field service representatives to conduct general maintenance and upgrade operations in Afghanistan. Work is expected to be completed by Dec 31/11, but all contract funds will expire at the end of the current fiscal year, on Sept 30/11 (M67854-07-D-5031).

June 15/11: An $8.1 million firm-fixed-price contract modification for a 6-month renewal of 43 field service representatives to support operations at Vehicle Support Facility-Afghanistan. Work will be performed in Afghanistan, and is expected to be completed by Dec 31/11, but all contract funds will expire at the end of the current fiscal year, on Sept 30/11 (M67854-07-D-5031).

See also Force Protection release. Service and support contracts almost always exceed the value of the initial purchase contracts over time, and with production activities slowed considerably, support contracts like these are a critical source of revenue for the firm.

June 14/11: A $14.4 million firm-fixed-price, indefinite-delivery/ indefinite-quantity contract modification for a 6-month renewal of 87 field service representatives and accompanying equipment to install spall liner blanket kits, independent suspension kits, modernization safety kits and conduct general maintenance on the Cougar MRAP fleet in Afghanistan. Work is expected to be completed by Dec 31/11, but all contract funds will expire at the end of the current fiscal year, on Sept 30/11 (M67854-07-D-5031).

May 2/11: A $106.9 million firm-fixed-price contract modification for 1,000 of Oshkosh’s TAK-4 Independent Suspension System kits: 650 for Cougar 4x4s, and 350 for Cougar 6x6s. Delivery of the kits is expected to begin in the Company’s Q3 2011.

Work will be performed in Oshkosh, WI (95%, indicating that most of the contract’s value is Oshkosh’s), and Ladson, SC (5%), and is expected to be complete no later than Dec 31/11. $1.4 million in FY 2009 Other Procurement Air Force funds for the project will expire at the end of the current fiscal year (M67854-07-D-5031). See also Force Protection release.

April 29/11: An $18.8 million firm-fixed-price contract modification for 1,103 Cougar fuel tank protection modernization kits.

Work will be performed in Ladson, SC, and is expected to be complete no later than Dec 31/11. Contract funds will expire at the end of the current fiscal year, on Sept 30/11 (M67854-07-D-5031). See also Force Protection release.

April 6/11: Force Protection announces a $46.6 million Foreign Military Sale (FMS) for 40 Buffalo MRAP-III clearance vehicles. All work under this contract will be performed in Ladson, SC and is expected to be complete by September 30, 2011. US MARSYSCOM manages the sale on behalf of its FMS client, which is not named (M67854-11-C-5063).

March 30/11: An $11.4 million firm-fixed-price contract modification for a 10-month renewal of 46 field service representatives to install liner blanket kits, install modernization safety kits, and conduct general maintenance work on the Cougar Mine Resistant Ambush Protected (MRAP) vehicle fleet. All work will be performed in Afghanistan and Iraq, and will be completed by Dec 31/11. All contract funds will expire at the end of the current fiscal year, on Sept 30/11 (M67854-07-D-5031).

March 9/11: Force Protection, Inc. releases its Q4 and full-year 2010 financial statements for the 12 months ended Dec 31/10. Lower spares and sustainment and vehicle sales were partially offset by increased modernization revenues. Net Sales were $656.0 million (2009: $977.1M), with Operating Income of $23.4 million (2009: $43.3M) and Net Income of $15.2 million (2009: $29.5M). Gross margin was 20.4% (2009: 16.5% without the Cheetah vehicle writeoff).

The firm’s year-end cash balance sits at $150 million, and more than $1 billion in new 2010 orders allowed them to enter 2011 with more than $560 million in funded backlog. Approximately three-quarters of this amount is expected to be recognized in 2011.

Separately, the board of directors has authorized Force Protection to repurchase up to $20 million of its common stock.

Cougar w. IED jammer
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Dec 16/10: Force Protection Industries, Inc. announces that it has broken the $1 billion mark for business in 2010. Of the orders received, approximately 53% were associated with modernization, spares and and maintenance for the company’s 4,500+ vehicles worldwide, while new vehicle orders accounted for about 47%.

Dec 15/10: A $13.4 million firm-fixed-price contract modification for 87 MRAP field service representatives. Work will be performed in Kuwait, and the option runs until June 30/11. Contract funds will expire at the end of the current fiscal year, on Sept 30/11 (M67854-07-D-5031).

Dec 3/10: A $17.4 million firm-fixed-price contract modification for a 12-month renewal of 54 field service representatives to provide the full spectrum of support, modernization, and upgrade work on the Cougar Mine Resistant Ambush Protected (MRAP) vehicle fleet. Work will be performed in Kuwait, and th renewal will expire on by Dec 31/11 (M67854-07-D-5031). See also Force Protection release.

Nov 29/10: As expected, Britain signs a GBP 180 million (about $300 million) contract with Force Protection Europe and their partner Ricardo plc, buying 200 Ocelot LPPVs. The vehicles will be known as Foxhounds in British service. UK MoD | British Forces News (video) | Force Protection | Defense News.

Nov 3/10: Force Protection, Inc. announces its Q3 2010 results. Full details can be found in the release, but net sales have dropped about 45% from Q3 2009, and the firm reports a slight net loss of $1.9 million for the quarter. FY 2010 9-month net income is $4.0 million so far.

As of September 30, 2010, the Company’s cash and inventories were $105.4 million and $85.9 million, respectively. In addition, accounts receivable was $186.6 million, including $105.8 million of earned but unbilled receivables, and accounts payable was $95.7 million.

Oct 1/10: Force Protection Inc. announces an agreement to settle 2 shareholder lawsuits, subject to court approval and certain other conditions.

A $24 million settlement covers the consolidated shareholder securities class action entitled In re Force Protection, Inc. Securities Litigation, Consolidated Civil Action No. 2:08-cv-845-CWH, pending in the U.S. District Court for the District of South Carolina against the Company and a number of the Company’s former directors and/or officers. Most of the settlement will be covered by insurance.

A related shareholder derivative action pending in the same federal court, In re Force Protection, Inc. Derivative Litigation, Civil Action No. 2:08-1907-CWH, is settled for $2.25 million from insurance, plaintiffs’ attorney’s fees and expenses up to $2.3 million, and the adoption of certain corporate governance practices.

Sept 30/10: A $6.5 million firm-fixed-price contract modification for a 3 month extension of 55 field service representatives to complete independent suspension system kit installation on the Cougar MRAP fleet. Work is expected to be complete by Dec 31/10 (M67854-07-D-5031).

This brings announces Cougar ISS related contracts to $462.2M.

Sept 22/10: The UK MoD picks the Force Protection Europe partnership as their preferred bidder for its Light Protected Patrol Vehicle program, as its Ocelot beats Supacat/NP Aerospace’s SPV 400. Past reports have suggested an initial buy of around 200 vehicles, and Urgent Operational Requirements contract negotiations will now begin. Read “Blast Breakers: UK Land Forces Order Force Protection’s Vehicles” for the full report.

Sept 20/10: Force Protection Industries, Inc. in Ladson, SC receives a $5.5 million firm-fixed-price contract modification for a 3-month extension of 70 field service representatives to complete independent suspension system kit installation on the Cougar MRAP fleet. When DID adds up all of the announced contracts that directly revolve around Cougar ISS upgrades, they add up to about $457.7 million (158.1 + 21.9 + 58 + 58.6 + 26.2 + 82.3 + 17.25 + 19.6 + 10.2 + 5.5).

All work will be performed in Kuwait, and is expected to be complete by Dec 3/10. All contract funds will expire at the end of the current fiscal year, on Sept 30/10 (M67854-07-D-5031).

Aug 24/10: The US Congressional Research Service releases the latest version [PDF] of its report “Mine-Resistant, Ambush-Protected (MRAP) Vehicles: Background and Issues for Congress. Excerpts:

“As of June 28, 2010, more than 8,500 MRAPs had reportedly been shipped to Afghanistan, with over 3,500 of those being the newer M-ATVs. The Army has recently said that it will begin development of yet another MRAP version – the “Ultra-Lite MRAP” – which raises questions about possible vehicle redundancies. The Marines, although voicing support for the M-ATV program, have retrofitted a number of MRAPs with new suspension systems and reportedly are satisfied with the results. This apparent success calls into question not only if the Marines need all of the M-ATVs allocated to them by DOD but also if the Marines’ retrofitted suspension system might be a more cost-effective alternative for the other services… Among potential issues for congressional consideration are the status of almost 5,000 MRAPS in Afghanistan that are reportedly not being used because of their size and weight.”

In terms of overall budgets:

“Through FY2010, Congress appropriated $34.95 billion for all versions of the MRAP. In March 2010, DOD reprogrammed an additional $3.9 billion from the Overseas Contingency Operations fund to MRAP procurement. Congress approved an additional $1.2 billion for MRAP procurement, included in the FY2010 Supplemental Appropriations Act (P.L. 111-212). The full FY2011 DOD budget request of $3.4 billion for the MRAP Vehicle Fund has been authorized by the House (H.R. 5136).”

Aug 19/10: A $64.1 million firm-fixed-price contract modification for 1,946 seat survivability upgrade kits and the associated integration and installation on the Cougar CAT I A1 MRAP vehicles.

The installations will be performed in Afghanistan (80%), Kuwait (5%), and on vehicles at home stations in the U.S. (15%). Work is expected to be completed by February 2011 (M67854-07-D-5031). See also Force Protection release.

Aug 17/10: A $14.6 million firm-fixed-price contract modification under previously awarded contract (M67854-07-D-5031) to purchase 43 field service representatives and standard consumable kits to support operations at Vehicle Support Facility-Afghanistan. All work will be performed in Afghanistan, and is expected to be complete by June 30/11. All contract funds will expire at the end of the current fiscal year, on Sept 30/10. See also Force Protection release.

Aug 17/10: DoD Buzz reports that the US Army’s latest Tactical Vehicle Strategy looks like bad news for the JLTV, with small buys spaced over time to equip deployed units. Bottom line?

“Here’s the basic plan. Overall, the Army will shrink its fleet of HUMVEEs, MRAPs and medium trucks to 244,000 by 2025 from its current 260,000. How? The service will rid itself of 4,000 of the hardest to maintain and most beat up MRAPS by 2025. It will scrap the 28,000-strong M35 fleet and replace it with new FMTVs for a fleet total of 76,000. That will mean a total reduction of 4,000 trucks. The HUMVEE fleet will shrink the most, going from 101,000 to 35,000 by 2025. But there appears to be one big hole in the Army plan. It does not project how many Joint Light Tactical Wheeled Vehicles it will be. The strategy’s answer: TBD.”

If Force Protection’s Cougars end up targeted in the 4,000, it would put a serious crimp in company revenues, which depend on maintenance and upgrade contracts to suport the existing fleet. See the full Army Tactical Vehicle Strategy [PDF].

July 28/10: A pair of $5.6 firm-fixed price contract modifications (total $10.2 million). Each covers a 5-month extension for 36 Field Service Representatives, who will help install Oshkosh’s TAK-4 Independent Suspension Systems onto Cougar MRAPs, to create Cougar ISS vehicles.

All work will be performed in Bagram (M67854-07-D-5031, #0016) and Kandahar (M67854-07-D-5031), #0017), Afghanistan, and is expected to be complete by June 30/11.

July 27/10: Force Protection partners with Canadian engineering & support firm SNC-Lavalin Defense Contractors, Inc. for the Canadian Government’s 500-600 vehicle Tactical Armoured Patrol Vehicle (“TAPV”) program.

Their TAPV Cougar bid will be arrayed against Oshkosh & General Dynamics Land Systems Canada (M-ATV), and Thales and DEW Engineering (Bushmaster). Force Protection. Read “FLCV: Canada Looks to Upgrade Its Armor” for more.

July 20/10: Force Protection, Inc. announces that the Government of Canada has advanced their 2 Cougar variants beyond the 500-600 vehicle TAPV programs Solicitation of Interest and Qualification (SOIQ) phase. In addition to the Cougar 4×4 and 6×6 variants, 7 vehicles from other equipment manufacturers were selected to move into the RFP phase, with a winner and contract expected in 2011. Force Protection.

July 2/10: In the wake of the May 26/10 announcement that its Ocelot is a candidate for Australia’s A$ 1 billion PMV-L component of Project Overlander, Force Protection meets with potential suppliers, as well as State Government ministers and industry representatives in New South Wales, Queensland, Victoria and South Australia. Force Protection.

June 24/10: A $19.6 million firm-fixed-price modification to a previous contract (M67854-07-D-5031, delivery order #0012), for a 3 month extension of 216 field service representatives. These individuals will be used to complete TAK-4 independent suspension system installation on the Cougar Mine Resistant Ambush Protected (MRAP) vehicle fleet at the MRAP sustainment facility in Kuwait. Work will be performed in Kuwait, and is expected to be complete by Sept 30/10. All contract funds will expire at the end of the current fiscal year, on Sept 30/10. See also Force Protection release.

June 23/10: Defense News reports an announcement by the new coalition government’s Minister for Defence Equipment, Peter Luff, who says they will be buying another 28 Wolfhound TSV protected heavy cargo vehicles.

It’s one of a pair of contracts to different manufacturers, reported to be worth a total of GBP 65 million (about $96.8 million). The other manufacturer, Supacat, announces a GBP 45 million contract, leaving GBP 20 million (about $29.8 million) for the Wolfhound purchase. The UK MoD confirms this figure several days later.

June 23/10: Force Protection Europe in the UK announces a support product for its vehicle fleets. Karrus is a comprehensive closed-loop logistics software management suite. It analyzes complex logistics data using inputs from field representatives and other sources, in order to provide a fleet-wide maintenance snapshot. It can also be used to make projections, answering questions like what parts are needed, current fleet availability, projected fleet maintenance costs for the next 10 years, etc.

Force Protection Europe Ltd’s Managing Director, David Hind, sees the system as being useful far beyond Force Protection’s UK products, though it has been tested and used with those vehicles, and does fit well with British support trends. Karrus will be promoted on a global basis, including in the United States by Force Protection Europe’s parent company.

June 22/10: A $15.4 million firm-fixed-price modification to a previous contract (M67854-07-D-5031, delivery order #0015) for the services of 43 field service representatives to install spall-liner blanket kits and modernization safety kits, and conduct general maintenance to the Cougar MRAP fleet supporting operations in Iraq and Afghanistan.

Spall liners use kevlar-type fabric, in order to either catch some shrapnel and bullet fragments that get past the outer armor, or narrow the coverage that any explosion can have in the vehicle’s interior. Work under this contract will be performed in Afghanistan and Iraq, and it will end on June 30/11. All contract funds will expire at the end of the current fiscal year, on Sept 30/10. See also Force Protection release.

June 11/10: A $10.8 million firm-fixed-priced modification to a previous contract (M67854-07-D-5031, delivery order #0018) to buy 2,654 alternator modernization 570 amp kits for Cougar family vehicles in Iraq and Afghanistan. With all the gadgets and add-ons they have to run, more electric power is always a good thing.

Work will be performed in Ladson, SC, and is expected to be complete by March 31/11. $1,937,510 will expire at the end of the current fiscal year. See also Force Protection release.

June 4/10: A $46.1 million firm-fixed-priced modification to a previous contract (M67854-07-D-5031, delivery order #0018) for 2,451 enhanced Automated Fire Extinguishing Systems. Deliveries are scheduled to begin in July 2010, and be complete by February 2011.

Work will be performed in Sterling Heights, MI, and is expected to be complete in February 2011. All contract funds will expire at the end of the current fiscal year, on Sept 30/10. See also Force Protection release.

May 26/10: The Ocelot is one of 3 vehicles added to the competition for the Australian Overlander Program’s Phase 4 buy of up to 1,300 PMV-L blast-resistant patrol vehicles. Thales Australia, Force Protection Europe, and General Dynamics Land Systems will each receive 6-month contracts worth up to A$ 9 million, in order to develop “Protected Mobility Vehicle” prototypes. Those prototypes would compete against any winners from the American/Australian JLTV competition. Australian DoD | Force Protection | Thales Australia.

May 25/10: Force Protection Europe has been invited by the UK MoD to tender for Britain’s LPPV (Light Protected Patrol Vehicle) Demonstration, Production and Support Phases. The invite follows a recently awarded contract placed for 2 Ocelot vehicles, presumably for testing purposes. Force Protection release.

May 20/10: The US DSCA announces [PDF] Britain’s formal request to buy another 102 Mastiff 6×6 blast-resistant vehicles, along with associated tools and test equipment, support equipment, spare and repair parts, and other related support. The estimated cost is up to $122 million.

The principal contractor will be Force Protection Industries, Inc., of Ladson, SC. There are no known offset agreements proposed in connection with this potential sale. The continued support of nine Field Service Representatives, currently providing in-theater maintenance support for the existing Mastiff vehicles until July 2010, will be extended until the UK can provide this support internally.

May 5/10: Force Protection, Inc. announces a $62.4 million modification to US Army TACOM contract W56HZV-08-C-0028 for 60 Buffalo mine protected clearance vehicles (MPCV), plus field support representatives, and technical data and manuals. The initial award is a firm-fixed-price $32.9 million contract. This contract modification is subject to finalization, so the end price may change somewhat.

Work is to be performed in Ladson, SC, with an estimated completion date of Nov 1/12, but Force Protection promises June 30/11 completion, with deliveries scheduled to begin in the 4th quarter of 2010. Unlike the rest of the MRAP competition, Buffalo MRAP-III MPCV vehicles are sole-source; 1 bid was solicited by U.S. Army TACOM in Warren, MI, with 1 bid received (W56HZV-08-C-0028).

May 4/10: $24 million for 30 Cougar 4×4 Category I MRAP vehicles including field service support. The contract is a Foreign Military Sale (FMS) for unspecified “coalition forces in support of US forces,” and is subject to adjustment.

The work will be performed in Ladson, SC and is expected to be complete by April 29/11 (M67854-10-C-5133).

April 19/10: $17.25 million for field service representatives to install the TAK-4 independent suspension system kits on Cougar MRAP vehicles in theater.

Work under these 2 $8.6 million each firm-fixed-priced delivery orders, issued under a previously awarded firm-fixed-price, indefinite-delivery/ indefinite-quantity contract (M67854-07-D-5031, #0016 and #0017), will be performed at Bagram Air Field in Afghanistan, and is expected to be complete by Jan 31/11.

April 2/10: $82.3 million firm-fixed-priced delivery order (M67854-07-D-5031) for the purchase of 755 Cougar independent suspension system (ISS) kits. The ISS kits are being manufactured by Oshkosh Defense in Wisconsin.

Work will be performed at the MRAP Sustainment Facility in Kuwait, and is expected to be complete by Dec 31/10. Contract funds will expire at the end of the current fiscal year. Force Protection release

March 8/10: Force Protection announces FY 2009 financial results for the year ended Dec 31/09. Net income was $29.5 million/ $0.43 per share (2008: $46.9M/ $0.69 per share), and operating income of $43.3 million (2008: $68.5M). That includes a $19.3 million write-down in Q3 2009, and also cost reduction activities that led to a 17% decrease in general and administrative expenses.

FY 2009 net sales were $977.1 million (all FP), compared to $1.3 billion in 2008 (about $920 million Force Protection + $479.5 million minimal margin pass-through sales to General Dynamics under the Force Dynamics MRAP agreement). The firm’s modernization, spares and sustainment business was a big 2009 contributor, growing by $461.6 million (over 180%). Of the firm’s 2009 shipments, 123 were its heavyweight Buffalo vehicles, a more than 50% increase over 2008. Overall inventories were down to $74.1 million (2008: $88.5M), but accounts receivable rose to $143.5 million (2008: $138.4M).

In a credit crunch environment, the firm’s year end cash and cash equivalents balance was $147.3 million (end 2008: $111.0M), thanks to annual net cash of $49.5 million (2008: $37.0M). Force Protection release.

March 8/10: A $26.2 million firm-fixed-priced delivery order (M67854-07-D-5031, #0012) in support of the Cougar ISS program that upgrades vehicles with Oshkosh’s TAK-4 suspension. The contract will extend the work of 216 field service representatives, life support, and vehicle and equipment rental.

Work will be performed at the MRAP Sustainment Facility in Kuwait, and is expected to be complete by June 30/10. Contract funds will expire at the end of the current fiscal year. See also July 2009 entries. Force Protection release

Feb 24/10: We be JAMMA. Force protection debuts its Joint All-Terrain Modular Mobility Asset (JAMMA) vehicle at AUSA Winter 2010. The vehicle is described as an armor-ready, four-occupant, hybrid powered (incl. 22Kw continuous exportable), high-performance off-road vehicle that can be transported inside the V-22 Osprey. JAMMA is equipped to handle high speeds, and is touted as a Special Operations suited vehicle whose modular system allows it to be up-armored easily. Force Protection release | Product Page.

Feb 23/10: Force Protection announces an order for 23 British Cougar Mastiff Explosive Ordinance Disposal (EOD) variants, via a Foreign Military Sales (FMS) contract from Marine Corps Systems Command. The undefinitized contract has a value not to exceed $16.1 million.

The work will be performed in Ladson, SC and is expected to be complete before April 2010. Indeed, the first 5 Mastiff contracted vehicles were delivered on Feb 8/10, 20 days after contract award, thanks to long lead funding that was already in place.

Feb 22/10: Force Protection’s Board of Directors appoints Randy Hutcherson as Chief Operating Officer, effective Feb 18/10. He had been serving as Executive Vice President, Programs, Global Sales and Business Development, and will continue to report to Chairman and Chief Executive Officer Michael Moody. Announcement | Executive Profile.

Dec 30/09: Figures obtained by Britain’s Liberal Democrat party indicate that only 134 of Britain’s 271 delivered Mastiffs are considered “fit for purpose” due to maintenance and battle damage, and the new Ridgeback 4×4 vehicles being used for the first time by 11 Light Brigade have just a 60% rate at 73 fit for service of 118 delivered. The first Ridgbacks and Mastiff 2s were deployed in Afghanistan in June 2009. UK’s Times | defense aerospace.

Ocelot unveiled
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Sept 30/09: As vehicle production tails off, Force Protection, Inc. needs to lower its cash burn rate in order to remain viable. Today, the firm formally announces a program to reorganize itself and slash costs, which is expected to save at least $40 million annually and will be complete by the first half of 2010.

Th company will eliminate about 120 net jobs from its current workforce of 1,200 employees and contractors, involving Q3 2009 severance charges of about $2 million. Reductions in manufacturing and engineering will be partially offset by an increase in the Company’s support facility in Kuwait, and growth in support and and supply-chain management related jobs. The company is streamlining its spares logistics functions as a whole, including proposed freight management changes that are expected to yield significant cost savings and improved customer response times. The firm will also be pursuing “significant savings opportunities” in general corporate functions such as finance, consulting, legal and human resources, facilities management, travel, insurance, and other costs. Force Protection release.

Sept 28/09: Force Protection, Inc. announces a $52.8 million modification to US Army TACOM contract W56HZV-08-C-0028, ordering 48 Buffalo Mine Protected Clearance Vehicles (MPCV). This contract modification is subject to finalization, so the end price may change somewhat. Work will be performed in Ladson, SC and is expected to be complete prior to September 2010.

The Company adds that it continues to expect additional orders under this program, and to make total deliveries of over 100 Buffalos during FY 2010.

Sept 8/09: Force Protection Europe, Limited debuts its 7.5 ton Ocelot light protected patrol vehicle (LPPV) at Britain’s DSEi 2009 exhibition in London. It has 4-wheel steering, giving it a market leading turning circle of 39 feet. It is 17 feet long, 8 feet high and 7 feet wide.

The Ocelot was designed in conjunction with UK automotive engineering firm Ricardo plc, specifically to meet the requirements for Britain’s upcoming LPPV competition. Ocelot is based on a modular design with a core automotive armored spine or “skateboard,” and a composite special-to-role pod. Center of gravity is low, as all the heavy items are contained within the V-shaped skateboard: the Steyr 3.2 litre straight six diesel powerpack, propshaft, 6-speed ZF gearbox, AxelTech differentials, fuel tank and all the suspension gear except a torsion bar which is mounted alongside the hull. The V-shape design results in the running gear not intruding into the crew area, making movement from front to back easier while improving protection levels. Bulkheads between vehicle crew and dismounts, and between them and the vehicle electronic equipment such as radios and jammers, give added protection.

Force Protection claims that its Ocelot exceeds the required LPPV mine protection level and offers protection similar to the 6×6 Mastiff Cougar variant, while still meeting LPPV targets for mobility, payload, size and gross vehicle weight. Current pods include patrol, fire support, or protected logistics vehicle, and the patrol vehicle pod has seating for 2 crew and 4 dismounts. Access is through large rear doors, 2 top hatches, or an oversize commander’s door. The pods can be swapped out in the field as the need requires. Ocelot can reportedly be airlifted in a C-130 Hercules aircraft, or even a CH-47 Chinook heavy-lift helicopter. Force Protection release | Ricardo release | Ocelot product page.

Aug 24/09: $8.1 million for firm-fixed-priced delivery order #0010 modification under previously awarded contract (M67854-07-D-5031), for US Marine Corps field service representative support in and around Afghanistan. The contract will run until Dec 31/10.

July 27/09: Force Protection, Inc. announces a $52.8 million modification to contract W56HZV-08-C-0028 from the United States Army TACOM for 48 MRAP-III Buffalo Mine Protected Clearance Vehicles (MPCV). This contract amount is not exact, and will be finalized later. Work will be performed in Ladson, SC and is expected to be complete before Jan 31/10.

On the same day, as a result of this award and the Army’s continued commitment to the Buffalo program, Force Protection amends and extends its lease for building 3 at its Ladson, SC facility until June 30/14.

July 15/09: A $58.6 million firm-fixed-priced delivery order under a previously awarded firm-fixed-price, indefinite-delivery/ indefinite-quantity contract (M67854-07-D-5031, #012). This contract amount is not exact, and will be finalized later. Support for the installation of TAK-4 independent suspension kits will will be performed in Kuwait, and is expected to be complete by Dec 31/09.

Force Protection’s release describes this as a supplementary order that will convert another 545 Cougar vehicles, bringing the total number to 1,862.

July 2/09: A $58 million firm-fixed-priced modification to previously awarded delivery order #0012 under previously awarded contract (M67854-07-D-5031), buying Phase 2 Field Service Representative Support, Equipment, Consumables, Bench Stock, and Training to install TAK-4 Independent Suspension Kits on 1,317 MRAP Cougar Vehicles.

This order brings the announced total for TAK-4 refit-related contracts to $237.5 (158.1 + 21.9 + 58.0) million. Work will be performed at the MRAP Sustainment Facility in Kuwait, and is expected to be complete by Feb 28/10. See also Force Protection’s release, and subsequent amendment.

July 1/09: Force Protection discusses the results of the US military’s M-ATV competition, which Oshkosh won:

“[M-ATV] did not select the Cheetah Mk. II vehicle submitted by Force Dynamics, LLC, the Company’s joint venture with General Dynamics Land Systems. The Company anticipates a relatively soft level of operating profit in its second quarter due to the timing of vehicle and other product shipments and costs related to the M-ATV competition. However, it expects a stronger second half and full year performance, due to expected life cycle support business combined with planned shipments of the Buffalo and the Wolfhound Tactical Support Vehicle (TSV).”

Michael Moody, Chief Executive Officer of Force Protection, added:

“We are grateful for the consideration given to our M-ATV submission by the customer, though of course we are disappointed to have not been selected. Even so, our business planning and ability to continue to generate growth and value for our shareholders was not dependent upon winning the M-ATV program… We have good near-term prospects, a highly active research and development organization and over $119 million in cash and no debt”

June 16/09: A $21.4 million modification of a firm-fixed-price delivery order (M67854-07-D-5031, #012), buying Phase 1 field service representative support for the installation of the new TAK-4 independent suspension kits on MRAP Cougar vehicles. See the April 8-9/09 entries.

Work will be performed at the MRAP Sustainment Facility in Kuwait, and is expected to be complete by Dec 31/09. All contract funds will expire at the end of the current fiscal year (Sept 30/09).

June 10/09: According to the UK Ministry of Defence, the first batch of Mastiff 2 and Ridgback 4×4 vehicles have reached Afghanistan. A total of 300 are now operational.

Upgrades to the newest vehicles include explosive attenuating seats to reduce back injuries; improved armor; improved axles and suspension to cope with the difficult terrain; better thermal imaging for the drivers; and greater crew capacity. UK MoD | DID Spotlight: “UK Land Forces Order Cougar Family Vehicles.”

May 18/09: Force Protection announces that it has signed a lease in Mina Abdullah, Kuwait, and will soon open a total life cycle support facility that includes warehousing, administrative offices, and depot services. The facility is designed to shorten turnaround time for spare parts, modernization, service and repairs, and training for the Company’s deployed fleet of vehicles throughout the Middle East and Central Asia. The facility will provide maintenance and repair training as well as Operational New Equipment Training (OPNET) for new and upgraded vehicles.

April 9/09: Oshkosh announces a $122 million sub-contract from Force Protection, who is buying its TAK-4® independent suspension system for Cougar retrofits (see April 8/09 entry). The TAK-4 suspension systems are used in the US Marines’ MTVR medium truck fleet to improve their off-road capability, and have also been featured in Oshkosh’s JLTV and M-ATV entries.

April 8/09: A $158.1 million firm-fixed-priced delivery order under a previously awarded contract (M67854-07-D-5031, #0012) to buy independent suspension kits for Force Protection’s Cougar MRAP vehicles. Work will be performed in the field, and in various locations within the United States, and is expected to be complete by Dec 30/10. See also Force Protection’s release, and a June 5/09 USMC article “MRAP modified from the ground up,” which adds that:

“The current MRAP has an issue with the axels bending and springs breaking when it hits harsher terrain… The independent suspension system virtually eliminates those problems…FPI field service representatives remove the old suspension system and prepare the hull surface for placing the independent suspension system… “We align the new suspension, permanently attach the brackets, and finally put the new suspension in their permanently… We only get one shot to align them correctly, so the whole process takes time.”

After FPI finishes with placing the new suspension, Oshkosh takes over and hooks up the brake systems, electrical wires and hoses, and makes sure everything is in working order… The process for conversion takes approximately six to seven days… Oshkosh’s central tire inflation system [which allows deflation for better traction on soft terrain]… is also being installed into the vehicles…”

April 7/09: The UK MoD signs a contract for 97 Wolfhound 6×6 heavy support vehicles, at a cost of about GBP 90 million ($122.6 million equivalent). These Cougar variants will be built by Integrated Survivability Technologies Limited (IST), a new 50/50 joint venture between Force Protection Inc., and their partner NP Aerospace in Coventry. The Wolfhound contract is expected to create 50 new jobs within NP Aerospace and its supplier base. In Force Protection’s words:

“The establishment of IST is intended to provide a single point of contact and design authority for future Force Protection business in the United Kingdom, including new projects, fleet upgrades and logistics support. The Wolfhound award represents the first direct sale to an overseas government of a Force Protection product. All previous Force Protection product orders for non-United States governments have been awarded through the United States Foreign Military Sales (FMS) program.”

See: UK MoD | Force Protection.

April 7/09: Force Protection announces a $1.3 million Hungarian Ministry of Defence order for 3 Cougar vehicles, spare parts and training by June 2009.

Hungary currently fields an ISAF contingent of around 370 troops, and leads a Provincial Reconstruction Team at Pol-i-Khomri, north of Bagram.

April 7/09: A $21.9 million firm-fixed-priced modification to previously awarded delivery order (M67854-07-D-5031, #0007) to buy parts for the Engineering Change Proposals (ECPs) for MRAP Category (CAT) I and II Prescribed Load Lists; CAT I and II Authorized Stockage Lists; CAT I and II Battle Damage Repair Lists; and the MRAP I and II Deprocessing Kit.

Work will be performed in Detroit, MI and is expected to be complete by Oct 30/09. The address appears to indicate work under the Spartan Motors contractor team arrangement.

French Buffalo
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April 4/09: Leased SALIS AN-124 cargo planes deliver 3 French Buffalos to Afghanistan, where they will serve with combat engineer detachments. They were accompanied by 4 SOUVIM (IVMMD Meerkat) vehicles, which serve as advance scouts for counter-mine operations. Once mines are detected, the Buffalo is used to dispose of anything that remains. DGA release [in French].

April 1/09: Force Protection, Inc. and Spartan Motors jointly announce a Contractor Team Arrangement to combine service capabilities and infrastructure for spare parts and field service of Force Protection’s fleet of Cougar vehicles. Each firm will commit key staff, facilities and information systems. Force Protection release.

March 26/09: Force Protection, Inc. (NASDAQ: FRPT) files its 2008 Annual Report on Form 10-K with the US Securities and Exchange Commission (SEC), within the prescribed period. That includes the audited results for the years ended Dec 31/08 and Dec 31/07, and the re-audited results for the year ended Dec 31/06.

Timely filing of accurate SEC statements has been a serious recent issue for the firm, so this timely filing is an important milestone for the firm. Force Protection release.

Feb 3/09: Spartan Motors, Inc. in Charlotte, MI received a $9.3 million firm-fixed-price, sole-source contract for 151 MRAP-III Buffalo Mine Protected Clearance Vehicle axle retrofit kits. Spartan is also a member of the Force Dynamics partnership that manufactures Cougars, in conjunction with Force Protection and General Dynamics.

Work will be performed at Charlotte, MI with an estimated completion date of May 18/09.The U.S. Army Tank & Automotive Command in Warren, MI manages this contract (W56HZV-09-C-0122).

Feb 3/09: A $17.3 million firm-fixed-priced modification to a previously awarded contract (M67854-07-D-5031, order #10) for the purchase of 41 Joint Program Office, South West Asia ITC instructors for a 6-month period, and 55 Mobile Red River Army Depot training instructors for a 6 month period. Work will be performed in Operation Iraqi Freedom/ Operation Enduring Freedom’s of responsibilities, and various locations within the United States, and is expected to be completed by June 30/09.

Jan 16/09: A $6.9 million firm-fixed-priced contract for 8 MRAP Category III Buffalo Vehicles and associated items. Work will be performed in Ladson, SC, and delivery is expected to be complete by Sept 1/09, with sustainment support continuing through January 2012 (M67854-09-C-5000).

Jan 15/09: Force Dynamics, LLC, the Force Protection/ General Dynamics joint venture that has produced Cougar vehicles under the MRAP program, announces that they are submitting Force Protection’s Cheetah in response to the U.S. Army’s MRAP All Terrain Vehicle (M-ATV) solicitation. Force Protection.

Force Protection has refused to include the Cheetah under the original Force Dynamics agreement, which splits manufacturing and revenues on a 50/50 basis. Cheetah’s failure to secure an initial contact as one of the 3 JLTV program finalists apparently created a change of heart. The base vehicle has been ready for a couple of years now, but it needs a base customer to succeed in the global marketplace. M-ATV, which could end up ordering up to 10,000 vehicles, is now the Cheetah’s best chance of justifying its development costs, and becoming a sustainable global offering.

Jan 14/09: A $5.9 million firm- fixed-price modification to previously awarded delivery order #0005 under contract M67854-07-D-5031. the military is buying CDRL A043 PHST – Preservation and Packaging, CDRL A044 PHST – Validation Report, CDRL A045 PHST – Special Packaging Instruction, and 15 additional Field Service Representatives (FSR) – OCONUS to support MRAP Category I Cougar 4×4 vehicles in Afghanistan.

Work will be performed in Ladson, SC, and in the Operation Enduring Freedom area of responsibility, and is expected to be complete by April 1/10.

Dec 23/08: Force Protection is informed by the SEC that, as a result of the October 2008 deregistration of prior auditor Jaspers + Hall, the Company should have its consolidated 2006 financial statements re-audited. The firm’s current auditors, Grant Thornton LLP, will play that role. Source.

Dec 18/08: A $10.4 million firm fixed priced modification to previously awarded under Delivery Order #0007 for armor kits (B-Kits) to be installed on 178 MRAP CAT I vehicles. Work will be performed in Ladson, SC and in CENTCOM’s Area of Responsibilities. Work is expected to be complete by June 30/09 (M67854-07-D-5031).

Dec 16/08: Force Protection announces 2 contract awards from Marine Corps Systems Command for 188 Cougar Exterior Ballistic EFP kits. These kits are designed to deal with Explosively Formed penetrator land mines, which form the equivalent of a tank shell and then fire it into the triggering or targeted vehicle. These unfinalized contracts carry a combined dollar value not to exceed $30 million, with delivery scheduled for late 2008 and early 2009.

The Force Armor kits use layered composite materials and metal that are 11 3/4-inch thick, and can be cut to fit any vehicle capable of carrying the weight. It weighs about 102 pounds and costs about $2,000 per square foot. Force Protection | Defense News.

Nov 19/08: New Wolfhound variant. Force Protection’s Wolfhound, a flatbed truck variant of the Cougar 6×6, wins the UK’s Tactical Support Vehicle (Heavy) competition as the preferred bidder. Force Protection proposes to deliver these vehicles in conjunction with their UK integration partner, NP Aerospace; Chairman and CEO Michael Moody adds:

“We completed design work and built two prototypes for Wolfhound, which is based on our highly successful Cougar vehicle, in just 90 days. During this time we also carried out blast tests and mobility trials.”

The Wolfhounds will be used to carry supplies into the most dangerous areas, and will often operate alongside its Mastiff (6×6) and Ridgback (4×4) brethren. The exact number of vehicles and cost remain unfinalized. UK MoD | Force Protection.

Nov 19/08: Force Protection announces a not-to-exceed $15 million modification under contract M67854-06-C-5162 from Marine Corps Systems Command, to deliver 24 more Cougar Mastiff 6x6s to the British Ministry of Defence. The undefinitized contract includes vehicles and spare parts, and the vehicles are scheduled for delivery in 2009.

On Oct 29/08, the UK MoD mentioned that that they would buy another 30 Cougar family 6×6 and 4×4 vehicles, in order to improve their training fleet. This may well be part of that order. Force Protection release.

Nov 17/08: The Canadian Forces, which already uses a handful of Cougar (5) and Buffalo (5) vehicles in Afghanistan, submits a modification under contract M67854-07-C-5039 for 14 Buffalo A2 route-clearance vehicles, and 34 more Cougar vehicles. The undefinitized contract modification carries a dollar value not to exceed $49.4 million, and includes vehicles, spare parts and field support. The vehicles are scheduled for delivery in 2009. Force Protection release.

Nov 14/08: The US government issues a pre-solitication notice for a subsidiary competition called M-ATV, essentially an “MRAP Lite” bridge buy to the JLTV. FBO pre-solicitation #W56HZV-09-R-0115. Force Protection’s Cheetah is likely to be a prime contender for the buy(s), which could reach up to 10,000 vehicles.

The requirement for land mine and EFP protection, in a vehicle that’s lighter and more mobile than MRAP, may prove very challenging for anyone to meet with an off the shelf product. A subsequent Defense News article places M-ATV’s top weight at 12.5 tons empty, however, which is only slightly lighter than some existing MRAPs. That could put the 7-10 ton Cheetah at a disadvantage.

The RFP is expected by early December 2008. A draft issued on Nov 25/08 states that M-ATV would receive the same DX top-priority production rating employed by the original MRAP program, adding that the first vehicles are expected to be fielded in the fall of 2009.

Nov 13/08: Force Protection, Inc. announces 2 orders for its MRAP Category III Buffalo mine-clearance vehicles, worth $34.1 million.

The first is an not-to-exceed $15.5 million unfinalized order from the United States Army for 16 Buffalo A2 route-clearance vehicles (W56HZV-08-C-0028). It is connected with the requirement for the Ground Standoff Mine Detection System (GSTAMIDS) program of record. The vehicles are to be delivered no later than the end of June 2009.

The firm also received a modification to contract M67854-06-C-5162 from Marine Corps Systems Command for a Foreign Military Sales order of 14 Buffalo vehicles to be delivered to the United Kingdom Ministry of Defence. The not to exceed $18.6 million contract is also unfinalized with respect to its total amount, and represents the first orders for the Buffalo vehicle from the United Kingdom. The Buffalos will be part of Britain’s GBP 96 million Talisman program, which will also include a set of armored engineer-excavator tractors and other related equipment. Work, including vehicle deliveries and sustainment, is to be complete by October 2009. UK MoD announcement.

Cheetah
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Oct 28/08: Force Protection’s Cheetah has been in development for a couple of years now; the lighter (14,000 pound empty) vehicle has been positioned as a mine-resistant candidate for the US military’s touted JLTV program to replace its Hummers. Force Protection was partnered with Finmecanica’s DRS for the competition.

The US military announces its 3 winners on this day – and the Cheetah is not among them. A BAE/Navistar team, the General Tactical Vehicles partnership of General Dynamics and Hummer maker AM General, and a team led by Lockheed Martin won 27-month development contracts in preparation for the next down-select. Per the Oct 24/08 entry, however, the Cheetah might become a bridge “MRAP-lite” order candidate until JLTV is fielded – currently scheduled for 2013, if indeed that is what happens. US Army release.

Oct 29/08: An $11.8 million firm-fixed-priced modification to previously awarded delivery order (M67854-07-D-5031, #0007) for MRAP Vehicle EOD (Explosive Ordnance Disposal) cages, increased quantities of prescribed load lists, authorized spares, Battle Damage Assessment repair kits, and deprocessing kits. Work will be performed in Ladson, SC and in CENTCOM’s area of responsibility. Work is expected to be complete by Dec 31/09.

Oct 24/08: Defense News reports that more mine-resistant vehicles could be in the order pipeline. The U.S. Army and Marine Corps reportedly plan to rapidly develop and buy a fleet of 7-10 ton vehicles that offer better mine resistance than Hummers, but better off-road mobility than MRAPs. Afghanistan is seen as an especial focus for these vehicles.

Oshkosh’s Sandcat and Force Protection’s Cheetah vehicle are seen as potential candidates for that bridge buy, and Navistar’s MaxxPro Dash must also be placed in this category given recent the MRAP orders for deployment of this lightened variant to Afghanistan. Defense News places potential military demand at 2,000- 5,000 bridge buy vehicles – assuming that future issues with the JLTV program and Army funding don’t lead to the “bridge” becoming the road.

Oct 24/08: Force Protection announces an additional delivery order for 27 Buffalo A2 variant route-clearance vehicles. This unfinalized contract arries a dollar value not to exceed $26.2 million, and is submitted as an urgent operational requirement. These vehicles are to be delivered prior to June 2009 (W56HZV-08-C-0028).

Oct 20/08: The Alamagordo Daily News reports that the new A2 version of the Buffalo CAT-III MRAP mine removal vehicle is currently undergoing testing and evaluation by White Sands Missile Range’s Survivability Vulnerability Assessment Directorate. The vehicle is being evaluated for its ability to survive various electromagnetic environmental effects and threats – which correctly implies testing for nuclear scenarios. Alamagordo Daily News | Reprinted by Force Protection.

Oct 7/08: Force Protection, Inc. announces a letter from the NASDAQ Listing Qualifications Hearings Panel, stating that it had determined to continue the listing of the Company’s securities because Force Protection has filed its Annual Report for the fiscal year ended December 31, 2007, and the Quarterly Reports for the first two quarters of 2008.

Father and Daughter
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Sept 30/08: Poland’s Gazeta Wyborcza’s report “Polish Soldiers in Unwanted Vehicles” that Poland has selected Force Protection’s Cougar as a lease from the American military, with the first 30 to begin delivery in October 2008. Robert Rochowicz, a spokesman for Poland’s Ministry of Defence, is quoted as saying that “The Cougars will be delivered by US Army to a location of our choice.”

The move reportedly suspends Poland’s own MRAP buy for about a year, and the selection has caused some controversy in Polish military circles.

Sept 30/08: Force Protection announces that it has filed its Quarterly Reports on Form 10-Q for the periods ended March 31/08 and June 30/08. The Company also filed with the SEC its amended Quarterly Reports on Form 10-Q/A, restated for the quarterly periods ended March 31/07, June 30/07, and Sept 30/07. Force Protection adds that it is now up to date with reporting requirements for the SEC and listing requirements for the NASDAQ market.

The firm’s Sept 30/08 release offers more details regarding its recent and past quarterly results.

Sept 24/08: A $41.8 million firm fixed priced modification to delivery order #0003 under previously awarded contract (M67854-07-D-5031) for the purchase of 90-day’s worth of spares per the Prescribed Load List (PLL); labor support and Authorized Stockage List (ASL). Work will be performed in, Ladson, SC, and is expected to be complete no later than Oct 29/09. See also Force Protection release.

Sept 22/08: Force Protection announces an extension from the Nasdaq Listing Qualifications Panel to file its Quarterly Reports on Form 10-Q for the first and second quarters of 2008 on or before Sept 30/08.

Sept 19/08: Force Protection Industries, Inc. in Ladson, SC received a $6.8 million firm-fixed-priced modification to previously awarded delivery order #0006 under previously awarded contract M67854-07-D-5031. The modification covers an MRAP Field Service Representative Site Lead and welders outside the United States, and finalizes the cost for Battle Damage Assessment Repair (BDAR) Kits and Deprocessing Kits. Work will be performed in Ladson, S.C., and in Iraq and Afghanistan; his contact period will expire in Dec 31/09.

Sept 15/08: Force Protection files its 2007 10-K financial statement, and explains its financial disclosure plans. From its release:

“…announced results for the full fiscal year ended December 31, 2007 and filed its Annual Report on Form 10-K for the year ended December 31, 2007 with the Securities and Exchange Commission. The Company noted that this filing includes restated condensed consolidated financial statements for the periods ended March 31, 2007, June 30, 2007 and September 30, 2007. Additionally, the Company stated that it intends to file separate amended Quarterly Reports on Form 10-Q for the first, second and third quarters of 2007 and Quarterly Reports on Form 10-Q for the first and second quarters of 2008 on or before September 30, 2008.”

The firm has also requested a NASDAQ listing extension to Sept 30/08.

Sept 4/08: Force Protection Industries, Inc. in Ladson, SC received $7.2 million for a firm-fixed-priced delivery order under a previously awarded contract (M67854-07-D-5031 #0013) for the purchase of 5 test vehicles with “engineering change proposal upgrades for enhanced maneuverability and associated non-recurring engineering costs.” That’s the exact language used to describe the Pentagon’s same-day order for 822 Navistar MaxxPro Dash vehicles, a ighter variant optimized for operations in Afghanistan. Force Protection release confirms as much. If Force Protection’s modified vehicles pass testing could conversions of some existing stock, or future American orders, be in store?

Work will be performed in, Ladson, SC and is expected to be complete no later than Jan 31/09. See also Force Protection release.

Sept 2/03: General Dynamics Land Systems announces contracts from Force Protection Inc. that are worth $47 million. GDLS will provide supplies and support for Force Dynamics Cougar vehicles under the MRAP vehicle program. Work under these contracts will be performed in Anniston and Oxford, AL; Charlotte, MI; Ladson, SC; Lima, OH; Kings Point, NC; and Sealy, TX.

Aug 28/08: The corporation’s accounting books remain a very serious problem. The firm will now restate its previously reported financial statements for the 3 month period ended March 31/07 and the 3 and 6 month periods ended June 30/07, in addition to restating its previously reported interim financial statements for the 3 and 9 months ended Sept 30/07. Meanwhile, serious accounting weaknesses are proving difficult to clean up. From the company release:

“Management discovered accounting errors during its 2007 interim period and year-end review, including errors associated with recognizing the value of revenue, certain accrued liabilities, inventory and deferred taxes in the proper quarterly periods. The Company discussed the matters related to the restatement with Grant Thornton LLP, the Company’s current independent registered public accounting firm…

The Company intends to file an Annual Report on Form 10-K for the year ended December 31, 2007 with the Securities and Exchange Commission on or before September 15, 2008. The Company anticipates that its consolidated statement of operations included in its Annual Report on Form 10-K for the year ended December 31, 2007 will report net sales of approximately $890 million, representing an increase of over $694 million from net sales of $196 million for the year ended December 31, 2006. The increase in net sales was primarily due to contracts awarded under the United States military’s Mine Resistant Ambush Protected (“MRAP”) vehicle program. Although revenues increased in 2007, the Company expects that 2007 net income will be significantly lower than the $16.6 million of net income that the Company reported for the year ended December 31, 2006.

The Company continues to evaluate the impact of the matters described above on its internal controls over financial reporting and the Company’s disclosure controls and procedures. Management noted it had previously identified and described material weaknesses in its internal control over financial reporting in its Quarterly Report on Form 10-Q filed on November 13, 2007. As a result of these previously identified material weaknesses and other deficiencies identified during the review of financial statements for the year ended December 31, 2007, management has concluded that the Company’s internal control over financial reporting was not effective as of December 31, 2007. Additionally, management does not believe that the material weaknesses identified as of December 31, 2007 will be remediated by September 30, 2008 and anticipates that material weaknesses will be identified in its Quarterly Report on Form 10-Q for the first, second and third quarters of 2008.”

Aug 20/08: An $18 million firm fixed priced modification to previously awarded delivery order #0006 under an existing contract (M67854-07-D-5031). The US military is buying MRAP parts, training equipment, training material, tool sets, field service outside the continental United States (OCONUS), continental United States, and administration.

Work will be performed in Ladson, SC; Camp Lejeune, NC; Camp Pendleton, CA; Twenty-nine Palms, CA; Gulfport, MS; Port Hueneme, CA; Fort Story, VA; Texarakana, TX, and CENTCOM’s front lines, and work is expected to be complete in December 2009.

Aug 12/08: NASDAQ Letter. Force Protection, Inc. (NASDAQ: FRPT) must announce a notice from the staff of The Nasdaq Stock Market stating that the Company is not in compliance with Nasdaq rules, because it has failed to file its 10-Q form with the US Securities and Exchange Commission for the quarter ended June 30/08, and that Force Protection is subject to having its stock delisted from the Nasdaq. This is not the first letter NASDAQ has sent FRPT on the subject of 10-Q filings.

At the Company’s request, a hearing on the Staff Determination was conducted before the Nasdaq Listing Qualifications Panel. On May 29/08, the Company received a letter from the Nasdaq Hearings Panel granting its request for continued listing on the Nasdaq Stock Market until Sept 15/08, subject to certain conditions:

“These conditions include, without limitation, that on or before September 15, 2008 Force Protection shall file with the SEC its Form 10-K for the fiscal year ended December 31, 2007, the Form 10-Q for the fiscal quarter ended March 31, 2008 and any required restatements. As a result, the Company’s common stock may remain listed with the Nasdaq Capital Market until September 15, 2008.”

July 18/08: Force Protection, Inc. will produce 5 Buffalo mine-disposal vehicles for the French military, as a $3.5 million modification to contract M67854-07-C-5039. The order is scheduled for completion by November 2008. Since the Buffalo vehicle is not part of the Force Dynamics partnership, work will be performed solely by Force Protection Industries.

July 1/08: A $43 million modification to a previously awarded contract (M67854-07-D-5031, Delivery Order #0006) for the purchase of Mine Resistant Ambush Protected Vehicle Integrated Logistic Support sustainment parts, Training Equipment, Training Material, Tool Sets, Outside the Continental United States Instructors and Field Service Representatives.

Work will be performed in Ladson, SC, and within CENTCOM’s area of responsibility, and is expected to be complete in December 2009. See also Force Protection Aug 8/08 release re: its support orders.

June 2008: The US Army names to Cougar 6×6’s Reconnaissance Vehicle System variant as one of the Top 10 military inventions of 2007. The RECCE adds a number of additional features including the Protector/CROWS gun that can be operated from inside the vehicle; ‘Blue Force Tracker‘ that shows identifies enemies and all friendly forces (sometimes found on other vehicles as well); Gyrocams; and a Robot Deployment System that lets the crew deploy and retrieve tracked MTRS robots without having to open the vehicle.

Read “US Army Awards Top 10 Inventions of 2007” to see the other winners.

May 29/08: A $28.5 million modification to previously awarded contract (M67854-07-D-5031, #0003) to purchase welding services and spares under the Mine Resistant Ambush Protected (MRAP) Vehicle Integrated Logistic Support (ILS) effort. Work will be performed in Ladson, SC, and in Iraq and Afghanistan, and is expected to be complete in October 2009.

May 29/08: A $15.2 million modification to contract (M67854-07-D-5031) Delivery Order #0006 to purchase field support services under the Mine Resistant Ambush Protected (MRAP) Vehicle Integrated Logistic Support (ILS) effort. Work will be performed in Ladson, SC and in Iraq and Afghanistan, and is expected to be complete in October 2009.

May 23/08: A $6.4 million firm-fixed-priced modification under delivery order #0001 to contract (M67854-07-D-5031) for the purchase of Outside the Continental United States (OCONUS) MRAP instructors. Work will be performed in the combat area of operations until August 2008.

May 5/08: A $17.1 million modification to previously awarded contract (M67854-07-D-5031, #0005) for the purchase of Mine Resistant Ambush Protected (MRAP) vehicle integrated logistic support sustainment parts and OCONUS(Outside the CONtinental US) field service representatives. Work will be performed in Ladson, SC and is expected to be complete in October 2009. The Marine Corps Systems Command in Quantico, VA issued the contract.

May 1/08: Force Protection Industries, Inc. in Ladson, SC receives a not to exceed $91.55 million contract modification from the UK MoD under previously awarded contract (M67854-06-C-5162), in exchange for 151 vehicles and associated spares. Force Protection notes them as Cougar vehicles; the 4x4s are apparently named “Ridgebacks” in British parlance, and will complement the larger Mastiff vehicles. See also April 8/08 entry.

Work will be performed in Ladson, SC, with the first vehicle deliveries scheduled to begin in July 2008; work is expected to be complete in July 2009. Funds for this action are provided by the United Kingdom Ministry of Defence and do not expire. The Marine Corps Systems Command in Quantico, VA handles the order on the American side. Force Protection release | DID coverage of Britain’s Mastiff/Rideback orders.

April 29/08: A $15.3 million modification to delivery order #0003 (See Jan 15/08 entry) under previously awarded firm-fixed-price, indefinite-delivery/ indefinite-quantity contract M67854-07-D-5031 for “Mine Resistant Ambush Protected (MRAP) vehicle Integrated Logistic Support (ILS) sustainment parts.” Or, in English, for spares. Work will be performed in Ladson, SC and is expected to be complete in October 2008.

April 22/08: Force Protection Industries, Inc. in Ladson, SC received a $12.6 million firm-fixed-priced modification under a previously awarded contract (M67854-07-D-5031, Delivery Order #0004) for MRAP Vehicle logistics support to include technical data, provisioning data, Outside the Continental United States field service representatives, a 1-year maintenance workshop block and a 1-year forward deployment block of services. Work will be performed in the combat area of operations and in Ladson, SC, and is expected to be complete by Nov. 2008.

April 8/08: The Defense Security Cooperation Agency notifies Congress of the United Kingdom’s formal request for another 157 Mine Resistant Ambush Protected (MRAP)Category I 4×4 Cougar vehicles, as well as tools and test equipment, maintenance support, contractor technical and logistics personnel services, support equipment, spare and repair parts, and other related elements of logistics support. This is not a contract, but past British requests have been consistently followed by orders.

The estimated cost is $125 million, and the proposed sale requires the continued support of 7 Field Service Representatives (FSRs), currently providing in theater maintenance support for Britain’s existing Mastiff Cougar 6×6 variants. An additional 8 FSRs will be added under the UK-P-LTR arrangement, and the United Kingdom has requested 1 additional FSR under this proposed sale to support the additional vehicles until July 31/09.

Note that any contract arising from this request will not be part of the Force Dynamics joint venture, which only applies to American MRAP sales. DSCA release [PDF] | Force Protection release.

April 8/08: Force Protection, Inc.’s Executive Vice President for Customer Relations Damon Walsh, and Vice President for Program Management Bill LaFontaine, have received a “Patriot Award” Certificate of Appreciation from the U.S. Department of Defense.

The Patriot Award recognizes employers whose policies and practices are supportive of their employees’ participation in the National Guard and Reserve. All awards originate from nominations by individual Reserve members, and are issued by the DoD’s National Committee of Employer Support of the Guard and Reserve. Force Protection release.

Cougar-H 4×4 EOD
(click to view full)

March 24/08: Force Protection announces that NASDAQ has taken initial steps to de-list the company for failing to file its 10-K. Compounding the firm’s difficulties, its auditors resign, on the grounds that the company’s financial controls make it impossible for them to offer an opinion backing the company’s figures.

See “Force Protection: Blast-Resistant Manufacturer Headed for Implosion?” for more.

March 14/08: A $9.8 million delivery order under previously awarded contract (M67854-07-D-5031) for 12 Cougar 4×4 and 6 Cougar 6×6 vehicles. Work will be performed in Ladson, SC, and is expected to be complete November 2008.

This order, coming as it does on the same day as orders for hundreds of vehicles from key competitors, and following on the heels of plant capacity expansion (q.v. Nov 30/07) and a small December 2007 order (q.v. Dec 18/07), is not good news for the firm. Indeed, a Bloomberg report claims that today’s orders were mainly for the U.S. Army, and quotes Force Protection’s vice president for government relations Michael Aldrich as saying that “This is the logical continuation of the course the Army set back in December… From December we stopped ramping up [as the US Army chose to focus on BAE and Navistar]. Force Protection remains in 3rd place overall within the MRAP competition, slipping to 21.8% behind Navistar (36.9%) and BAE Systems (35.7%), but remaining well ahead of partner General Dynamics’ collaboration with South Africa’s BAE OMC on the proven RG-31 (4.4%).

March 14/08: A $7.7 million firm-fixed-priced delivery order under previously awarded contract (M67854-07-D-5006, #007) for the purchase of 11 MRAP Category III (Buffalo) vehicles. Work will be performed in Ladson, SC and is expected to be complete in September 2008.

The Buffalo is a sole-source contract to Force Protection, and 117 have been ordered to date. Whereas its Cougars are designed to resist land mines, the Buffalo vehicle and its long-armed claw are designed to dig them up and dispose of them.

March 7/08: Force Dynamics, LLC, the joint venture company of Force Protection, Inc. and General Dynamics Land Systems announces that Damon Walsh has been named Chairman, and that Daniel Busher has been unanimously selected as new members of the Board, effective March 3/08. The remaining members remain: Mark Roualet as Vice Chairman; Susan Young as Treasurer; and Richard Hamilton and John Gonias as members at large.

Mr. Walsh is a Level III Certified Acquisition Professional as well as a Certified Professional Contracts Manager with more than 25 years experience in both the operational Army and Acquisition communities, who served as a career officer in a wide variety of U.S. Army staff and command positions before joining Force Protection.

Mr. Busher has more than 20 years of international business experience in the automotive industry, and was an executive of materials for North American Automotive Operations within Alcoa before joining Force Protection. Force Protection release.

March 3/08: Force Protection, Inc. announces that interim CEO Michael Moody will become the Company’s Chief Executive Officer, President, and Chairman.

News is less good for the firm’s Chief Operating Officer and Chief Financial Officer positions; Raymond Pollard, the Company’s COO, departed effective this day, and the firm has determined not to fill the COO role in the near future. CEO Moody will assume immediate responsibility for Mr. Pollard’s direct reports, which include Executive Vice Presidents Damon Walsh, Daniel Busher (both of whom joined the Force Dynamics joint venture’s Board on this day) and Mark Edwards.

CFO Michael Durski departed the Company effective Feb 29/08 to pursue other interests, and the Board appointed Huron Consulting Group, LLC managing director Francis E. Scheuerell, Jr. as the Interim CFO while an external search is undertaken.

March 3/08: This isn’t going to help the firm on Wall Street. Force Protection, Inc. [NASDAQ:FRPT] announces that it will delay the filing of its Annual Report/ Form 10-K with the US Securities and Exchange Commission for the year ended December 31, 2007, waiting until an audit of the fiscal year’s consolidated financial statements for the year ended 2007 is complete. The firm will also restate its previously reported interim financial statements for the 3 and 9 month periods ended Sept 30/07, by filing a Form 8-K with the SEC.

“Management discovered significant accounting errors during its year end review, including errors specifically related to the recording of accounts payable related to inventory purchased from a sub-contractor as a result of a contract termination. The Company continues to evaluate the impact of the matters described above on its internal control over financial reporting and the Company’s disclosure controls and procedures. Management noted it had previously identified and described material weaknesses in its internal control over financial reporting in its Quarterly Report on Form 10-Q filing dated November 13, 2007. As a result of these previously identified material weaknesses and other deficiencies identified during the review of financial statements for the year ended December 31, 2007, management has concluded internal controls over financial report were not effective as of December 31, 2007. Additionally, management does not believe that the material weaknesses identified as of December 31, 2007 will be remediated by March 31, 2008 and anticipates that material weaknesses will be identified in its Quarterly Report on Form 10-Q for the first quarter of 2008. Therefore, management expects that internal control over financial reporting is likely to be ineffective as of March 31, 2008.”

Feb 21/08: The UK contracts for 174 Mastiff vehicles (see Oct 8/07 entry) in a not to exceed $115.1 million contract modification under previously awarded firm-fixed-price contract M67854-06-C-5162. This order includes Mastiff 6×6 MRAP vehicles and associated test sets, spares and support services. Work will be performed in Ladson, S.C., and is expected to be complete in July 2009. Orders are placed via US MARSYSCOM. Force Protection release.

Feb 21/08: The Italian Ministry of Defense is buying 10 “MRAP” vehicles and associated support services and parts under a not to exceed $8.4 million modification under previously awarded contract (M67854-07-C-5039). Work will be performed in Ladson, SC and is expected to be completed in June 2009. Orders are formally placed through MARSYSCOM.

Italy has displayed interest in all of Force Protection’s vehicles at various times: the Cougar, the Buffalo mine-clearance vehicle, and even the Cheetah light patrol vehicle. Given Italy’s existing contract for several hundred Iveco MLV blast-resistant light patrol vehicles, however, the Buffalo seemed like the most likely choice. A later Force Protection release revealed that the order is for 4 Buffalo mine-removal vehicles, and 6 Cougar 6×6 vehicles.

Jan 15/08: Force Protection Industries Inc. in Ladson, SC received $74.1 million for firm-fixed-priced delivery orders #0003 and #0005 under previously awarded contract (M67854-07-D-5031) for the purchase of integrated logistic support (ILS) support. The sustainment ILS will consist of authorized stockage list category (CAT) I and CAT II, prescribed load list CAT I and CAT II, deprocessing, and special tools in support of Cougar MRAP vehicles in theater.

Work will be performed in Ladson, SC, and is expected to be complete by July 2008 (M67854-07-D-5031 / #0003 and #0005). Force Protection release.

Jan 8/08: Force Protection, Inc. announces that CEO Gordon McGilton will retire from the Company effective Jan 31/08. The Company Board of Directors has appointed President Michael Moody, age 61, as the Interim CEO, “while a search is conducted to select a CEO from internal and external candidates.” Corporate release | Statement from Michael Moody.

Jan 2/08: The Force Protection, Inc. and General Dynamics Land Systems joint venture Force Dynamics, LLC announces that they’ve produced 350 MRAP vehicles in December 2007: 343 Cougar 4×4 and 6×6 MRAP Category I/II vehicles, and 7 MRAP Category III Buffalo vehicles (vs. 6 called for in the contract). They also report that Force Dynamics finished 2007 56 vehicles ahead of schedule on all MRAP Category I and II delivery commitments, and 3 vehicles ahead of schedule on its sole-sourced Category III Buffalo contracts. Force Protection release.

Cougar 4×4
(click for full size)

Dec 18/07: A $377.8 million firm fixed priced delivery order (M67854-07-D-5031, #007) for 178 Cougar 4×4 MRAP CAT-I vehicles and 180 Cougar 6×6 MRAP CAT-II vehicles, which include engineer change proposals to improve the vehicles and Integrated Logistic Support. The sustainment ILS will consist of Authorized Stockage List CAT-I and CAT-II, Prescribed Load Listing CAT-I and CAT-II, Deprocessing, and Basic Issue Items. Work will be performed in Ladson, SC, and is expected to be complete by July 2008. This contract was competitively procured.

The net result of this contract, however, is further competitive slippage, as Force Protection drops to 3rd place in total MRAP orders behind Navistar (37.6%) and BAE Systems (30.1%). To date, the USA has ordered a total of 3,053 Force Protection MRAP CAT-I/II vehicles (1,506 Cougar 4x4s, and 1,547 Cougar 6x6s), or 25.7% of total orders. That probably isn’t what investors wanted to hear, so Force Protection’s release added a pair of interesting tidbits:

“MARCORSYSCOM also advised Force Protection that its Cheetah vehicle proposal is in the competitive range for continued development and testing and will be further evaluated with modifications as part of the ongoing MRAP II competition… We are in the process of finalizing a contract for the Buffalo route clearance vehicles to be part of the Ground Standoff Mine Detection System (GSTAMIDS) program of record.”

That first item might be important, as Force Protection submitted a modified Cougar but did not receive a contract for additional vehicles under the MRAP-II competition, which aims to field vehicles that can survive the more advanced EFP(Explosively Formed Penetrator) land mines in theater. Rivals BAE Systems, and the i3/Ceradyne/Oshkosh team’s Bull vehicle, did. The follow-on question is whether a deployable vehicle like the Cheetah, with an empty weight of only 14,000 pounds vs. the Cougar 4x4s 31,000 pounds, can be fitted to resist the 30 and 50 pound land mines being detonated at Aberdeen – in addition to EFPs, which are more akin to cannon shells being fired into a vehicle.

Dec 14/07: Force Protection CEO Gordon McGlinton feels compelled to issue a press release in order to “address significant misinformation about the Company and to update our shareholders on Force Protection’s financial posture and dispel unfounded rumors amongst the shareholder base, the investment community, and elsewhere”.

Dec 3/07: Production capacity issues have been an ongoing refrain for Force Protection, as it moved from a start-up operation to a large industrial manufacturer over the 2004-2007 period. One response has been to provide more data re: monthly vehicle production records, and a corporate release covers the Force Dynamics joint venture’s November 2007 statistics.

According to Force Protection, the partnerships produced 288 Cougar 4×4 and 6×6 vehicles under the MRAP contract, and is now 68 vehicles ahead of schedule on all MRAP Category I and II delivery commitments for the year. Force Protection alone also produced nine MRAP Category III Buffalo vehicles in November, one more than the 8 deliveries called for in its sole-sourced CAT III contract. The firm is now 2 vehicles ahead of schedule on its sole-sourced Category III Buffalo contracts for the year.

The firm has publicly pledged to reach 400 vehicles per month by February 2008.

Nov 30/07: Force Protection, Inc. opens its new manufacturing facility in Roxboro, NC (q.v. July 12/07 entry). The 430,000 square foot state-of-the-art facility is expected to employ approximately 270 people upon reaching full capacity, and the total cost for the Roxboro facility’s assembly line was approximately $31 million. Force Protection release.

Nov 28/07: Force Protection holds a ceremony commemorating the delivery of its 1,000th vehicle for the MRAP program. The Ladson, South Carolina event features, inter alia, Senator Lindsey Graham, Captain Joe Manna from the Defense Contract Management Agency, and Mr. Paul Mann, MRAP Program Manager representing the U.S. Department of Defense. Source.

Nov 13/07: Jane’s Defence Weekly reports that:

“United States land systems specialist Force Protection is aiming to increase production of Mine Resistant Ambush Protected (MRAP) vehicles to 1,000 units per month by July 2008 with the ultimate target of producing a total of 12,100 MRAPs by the end of next year. The announcement came after Force Dynamics – the joint venture production partnership of Force Protection and General Dynamics Land Systems – reported on 5 November that it had broken vehicle production records during October.”

Nov 8/07: Force Protection, Inc. announces a contract from the U.S. Army’s Tank Automotive and Armaments Command (TACOM) for an additional 29 Buffalo MRAP CAT III mine-protected vehicles. The approximate total value of the contract is $22.3 million. They add that “Force Protection has delivered more than 140 Buffalo vehicles to date in support of route clearance missions in Iraq and Afghanistan.”

Nov 8/07: Force Protection, Inc. CEO Gordon McGilton testifies before members of the House Armed Services Committee. He says that the Force Dynamics partnership delivered 208 vehicles in October 2007, and plans to expand its maximum production rates to build, together with its partners, approximately 500 vehicles per month by April 2008 and approximately 1,000 vehicles per month by July 2008, for a total of approximately 12,100 MRAP vehicles by the end of 2008. As of Nov 1/07, 734 Cougar MRAP Category I and II vehicles have been delivered. Force Protection release.

Nov 1/07: Force Protection Industries, Inc. in Ladson, SC received a $91.8 million firm-fixed-priced delivery order modification under previously awarded contract (M67854-07-D-5031) for the purchase of Mine Resistant Ambush Protected (MRAP) Vehicles University, new equipment training, integrated logistic support and OCONUS (outside of the continental United States) field service representatives support. Work will be performed at Ladson, SC and is expected to be complete November 2008. The Marine Corps Systems Command in Quantico, VA issued the contract.

Force Protection’s release adds that “Pursuant to Force Protection’s agreement with General Dynamics Land Systems, a portion of the work under this contract will be performed by General Dynamics Land Systems pursuant to a subcontract.”

Oct 18/07: Force Protection Industries, Inc. in Ladson, SC received $376.6 million for firm-fixed-priced delivery order #0006 under previously awarded contract (M67854-07-D-5031) for the purchase of 553 Cougar 4×4 MRAP CAT I vehicles, 247 Cougar 6×6 MRAP CAT II vehicles, and vehicle sustainment Integrated Logistic Support. Work will be performed in Ladson, SC, and is expected to be completed April 2008. This contract was competitively procured. by the Marine Corps Systems Command in Quantico, VA.

Per the Force Dynamics partnership, General Dynamics receives 50% of the contract’s value; their Oct 22/07 release cites a value of $189 million, with work being performed at Anniston, AL and Oxford, AL; Charlotte, MI; Ladson, SC; Lima, OH; Kings Point, NC; and Sealy, TX. Force Protection release.

Wall Street analysts are not happy with the company’s loss of dominance in the MRAP competition, and Navistar’s consistently larger order totals. As of this date, Force Protection remains 2nd in the MRAP CAT I/II race with 30.9% of total orders – 1,338 Cougar 4x4s, and 1,367 Cougar 6x6s – behind Navistar (33.8%), but ahead of BAE Systems (26.3%) and General Dynamics (7.1%). MRAP CAT III is a sole-source buy of FP’s Buffalo vehicle, and 77 have been ordered to date.

Oct 15/07: The Pentagon’s DefenseLINK quoted excerpts a speech before the Center for a New American Security, Marine Corps Commandant Gen. James T. Conway talked about MRAPs, and may have shed more light on the picture at the top of our article:

“We had an incident the other day where an MRAP was hit with a 300-pound charge right under the engine. Now, I mention the size of the charge because we were testing them at Aberdeen against 30- and 50-pound charges. But a 300-pound charge went off right under the engine. It blew the engine about 65 meters away from the vehicle, caused a complete reversal of direction on the part of the MRAP, but of the four Marines inside, the regimental commander put one on light duty for seven days and the other three continued with the patrol. So it’s an amazing vehicle in terms of the protection that it gives to our people against these underbody blasts.”

Oct 8/07: UK Prime Minister Gordon Brown announces that Britain will buy another 140 Mastiff vehicles for use in Iraq and Afghanistan. The MoD intends to finalize the deal for this additional set vehicles “in the next few weeks,” and has set aside GBP 100 million for this purpose. MoD release.

NP Aerospace in Coventry integrates and up-armors delivered Cougars to create the finished Mastiff vehicle. A subsequent December 17/07 notification from the US DSCA submits an official request for up to 170 MRAP CAT-II vehicles, and values the contract at up to $147 million. In other words, more Mastiffs than planned, for less money (GBP 100 million = about $206 million).

Iraqi ILAV w. MCATS
(click to view full)

Oct 8/07: Force Protection, Inc. announces a purchase order from BAE Systems for an additional 45 Iraq Light Armored Vehicles (ILAV): 27 for Iraq under the existing 400 vehicle contract, and 18 for Yemen. The order is worth an estimated $3.5 million, and will be completed by February 2008. The firm also clarifies the ILAV’s current production status:

“The combined enterprise of Force Protection and BAE Systems previously received awards totaling $180 million in 2006 to build 398 4×4 ILAVs, based on the proven design of the Cougar vehicle. In total, the contract authorizes production of up to 1,050 Cougar ILAVs. BAE Systems is prime contractor on the ILAV program, with Force Protection as subcontractor. “

Oct 3/07: The Force Dynamics, LLC partnership announces production figures of “more than 115 Mine Resistant Ambush Protected (MRAP) Category I and Category II Cougar vehicles” in September 2007, exceeding delivery objectives and MRAP contract requirements. To date, Force Dynamics is ahead of schedule on its Category I and Category II MRAP competitive contracts for 2007.

Are they ahead of projections made in June 2007 re: production capacity? That question was not answered.

Aug 10/07: Force Protection Industries, Inc. in Ladson, SC received $69.8 million for delivery order #0005 under previously awarded firm-fixed-priced, indefinite-delivery/indefinite-quantity contract M67854-07-D-5031. The US military will purchase another 25 Cougar 4×4 MRAP CAT-I vehicles, and 100 more MRAP CAT-II Cougar 6×6 vehicles. Work will be performed in Ladson, SC; Anniston, AL; and Sealy, TX, and work is expected to be complete December 2007. The Marine Corps Systems Command, in Quantico, VA issued the contract.

The Force Protection release adds that the company has placed more than 60 Field Service Representatives (FSRs) in the field to assist the armed forces in training and vehicle maintenance in Iraq and Afghanistan.

July 12/07: Force Protection is expanding its own production capacity, via a new 430,000 square foot facility in Roxboro, NC. It will produce Cougar vehicles – and also FP’s new, lighter Cheetah. Meanwhile, General Dynamics is ramping up its own capacity within the Force Dynamics partnership via a new 80,000 square foot plant in Oxford, AL; and expansion of its workforce at Anniston, AL by 50 employees. See full DID coverage.

July 5/07: General Dynamics announces a $111 million contract for MRAP work associated with the $221.7 million order noted below on June 19/07. They will produce 235 of the 455 Cougar vehicles. Fabrication and assembly will be performed in Anniston and Oxford, AL; Charlotte, MI; Ladson, SC; Lima, OH; Kings Point, NC; and Sealy, TX.

June 29/07: General Dynamics announces the delivery of the first MRAP Cougar vehicles from its new production lines in Alabama, as part of the Force Dynamics partnership.

Two General Dynamics assembly operations are being created in Alabama. The 80,000-square foot main General Dynamics assembly site for MRAP vehicles will eventually employ 220 new workers in Oxford, AL, while a supporting production site at Anniston Army Depot, AL will employ 50 new workers, in addition to the 240 building Fox and Stryker combat vehicles and the Abrams tank gunner’s primary sight. General Dynamics also contracted with BR Williams to operate a warehouse in Oxford, AL to support the new production operations. GDLS says that the Alabama sites will build more than 350 of Force Protection’s Category I 4×4 and Category II 6×6 Cougar vehicles by January 2008.

June 20/07: Force Protection issues their release re: the recent 455 vehicle order. It included this statement:

“We are delighted to receive this most recent order,” said Force Protection COO Raymond Pollard. “It permits us in concert with General Dynamics Land Systems and other partnered contractors to continue to increase the rate at which MRAP vehicles are being delivered to our government customer. We, of course, anticipate more orders to sustain that rate, which is currently scheduled to exceed 400 vehicles per month by February 2008.”

June 19/07: A $221.7 million firm-fixed-priced delivery order #0004 under previously awarded contract (M67854-07-D-5031) for additional 395 Cougar 4×4 Category I MRUV patrol vehicles, and 60 Cougar 6×6 Category II JERRV squad vehicles under Low Rate Initial Production (LRIP) contracts for MRAP vehicles. Work will be performed in Ladson, SC, and by various subcontractors.

This order brings their total awards under the MRAP program to 1,780: 760 CAT I vehicles and 1,020 CAT II, to make up 48% of the vehicles ordered so far from the 9 (now 7) competitors.

Buffalo. Soldier.
(click to view full)

May 31/07: The US military orders 14 Buffalo MRAP Category III vehicles for $12 million. Unlike the other MRAP categories, there is only one type of CAT-III vehicle. Full DID coverage.

May 4/07: An $8.8 million contact award from Canadian Expeditionary Force Command (CEFCOM) to produce 5 Buffalo mine-clearance vehicles and 5 Cougars. Marine Corps Systems Command in Quantico, VA will administer the contract under a foreign military sales agreement (FMS). The sustainment will consist of 90-days worth of spares, forward deployment and maintenance workshop service blocks, field service representatives, and operator and maintenance training (M67854-07-D-5039).

There have been rumors that the Canadian order was smaller than originally intended, due to USMC delivery priority. Nevertheless, it was solicited as a sole source procurement under the terms of an “International Agreement” as cited under FAR 6.302-4. See full DID coverage: “Canada Bringing Buffalos, Cougars to Afghanistan”

April 24/07: Small business qualifier Force Protection Industries, Inc. in Ladson, SC received a $481.4 million firm-fixed-priced delivery order (#0003) under previously-awarded contract #M67854-07-D-5031 for additional Mine Resistant Ambush Protected (MRAP) Low Rate Initial Production (LRIP) vehicles. The order covers 1,000 of the firm’s Cougar vehicles: 300 of the 31,000 pound curb weight 4x4s in MRAP Category 1 (MRAP-MRUV), and 700 of the 38,000 pound curb weight 6-wheeled Cougars in MRAP Category 2 (MRAP-JERRV). See full DID coverage.

March 14/07: Britain Orders 22 More Mastiff Cougar Variants, bringing the total to 108 vehicles and about $70.1 million. Force Protection release.

Feb 14/07: The US military orders 125 Cougar vehicles for shipment to the front and support in theater, as advance orders under the new MRAP (Mine-Resistant, Ambush Protected) contract. The contract includes 60 Cougar 4x4s (MRAP Category 1) and 65 Cougar 6x6s (MRAP Category 2), and amounts to $67.4 million. There are still 9 vendors competing in the 2 MRAP vehicle categories, and testing of the contenders is still underway. Total MRAP program orders could hit 4,100 vehicles and $2 billion.

March 8/07: Armor Holdings, Inc. announces a $40.7 million contract from Force Protection Industries, Inc. to produce Cougar armored vehicles for delivery to the U.S. Marine Corps. The contract includes production of vehicles and technical support, and falls under their agreement with Force Protection to manufacture and assemble Cougar vehicles in support of the Mine Resistant Ambush Protected (MRAP) vehicle program (see Nov 20/06 entry). Work will be performed in 2007 by the Armor Holdings Aerospace & Defense Group at its facilities located in Sealy, TX.

Armor Holdings and Force Protection are continuing discussions for follow-on Cougar production should Force Protection receive additional U.S. Marine Corps MRAP orders. Armor Holdings release.

Jan 11/07: Force Protection Industries Inc. in Ladson, SC received an estimated $9.4 million indefinite-delivery/ indefinite-quantity contract for 15 Joint Explosive Ordnance Disposal Rapid Response Vehicles (JERRV, aka. Cougar) with associated manuals, deployment kits, and training. Vehicles will be deployed to and supported in Iraq. Work will be preformed in Iraq, and is expected to be complete April 2008. “This contract is a sole source award based on an urgent and compelling need for the government.” The Marine Corps Systems Command in Quantico, VA issued the contract (M67854-07-D-5015).

Jan 4/07: ManTech International Corporation announces a $159 million contract over 16 months from the US Army Communications Electronics Life Cycle Command, to support mine-clearing and other systems for the U.S. Army in numerous locations within Iraq, Afghanistan and Kuwait. ManTech will provide services as ordered under the task including deployed sustainment management; deployed logistics and repairs management; unique system training and curriculum support; and resource management and acquisition. “ManTech will also support unique and specialized systems including the mine-clearing, Joint Explosive Ordnance Disposal (EOD) Rapid Response Vehicle” (JERRV, aka. Cougar). Services will be provided in Southwest Asia – including Iraq, Afghanistan and Kuwait, for the Program Management Assured Mobility Systems and the U.S. Army Tank and Automotive Command. See DID coverage.

Nov 20/06: Force Protection signs a production agreement with Armor Holdings, Inc.’s Aerospace & Defense Group. Force Protection will be the prime contractor under the agreement, with Armor Holdings as principal subcontractor, using its Sealy, Texas based capacity and core expertise in the automotive integration and assembly of the vehicle.

Mastiff, Afghanistan
(click to view full)

Nov 16/06: Force Protection delivers the first round of Cougar Mastiff Patrol Protected vehicles (Mastiff PPV) to the British Ministry of Defence 3 weeks early. See release.

Nov 11/06: Force Protection signs a production agreement with General Dynamics Land Systems. Force Protection will be prime contractor under the agreement, with General Dynamics as subcontractor, using available production capacity at the Joint Systems Manufacturing Center in Lima, OH to perform structure fabrication of the Cougar.

Nov 9/06: Force Protection Industries, Inc. in Ladson, SC received a $125 million letter contract for 100 Joint EOD Rapid Response Vehicles (JERRV) and 44 Buffalo vehicles with associated manuals, deployment kits, field representative support and training. Vehicles will be deployed to and supported in Iraq, but work will be performed in Ladson, SC and is expected to be complete by November 2007; support will continue up to a year after fielding. This is a sole source award to Force Protection Industries, Inc., based on an urgent and compelling need for the Government by the Marine Corps Systems Command in Quantico, VA (M67854-07D-5006).

This contract contains options, which if exercised, would bring the totals to 200 JERRV vehicles and 82 Buffalo vehicles, and the estimated contract value to $200 million. It is considered to be the first award made under the new MRAP(Mine Resistant, Ambush Protected) program. DID article.

Oct 16/06: USMC Orders for Gyrocam Products Continue to Rise. As DID’s article notes, these stabilized, triple-sensor gyrocams are often mounted on Cougars to assist in early detection of IEDs. This follow-on order brings Gyrocam Camera Systems’ orders for this product to about $95 million.

Cougar-H & EOD Team
(click to view full)

Sept 29/06: Force Protection, Inc. announces an extension of its agreement with Denel PTY of South Africa subsidiary Mechem. The deal extends the term of their relationship for an additional five years effective September 13, 2006. Mechem specializes in the supply of landmine detection, de-mining, and unexploded ordnance disposal equipment and services, and they will continue to work exclusively with Force Protection on all projects relating to the exploitation of their technology. See release.

Aug 11/06: UK Land Forces Order 86 ‘Mastiff PPV’ Cougar Vehicles for $62.9 million. The full contract was announced in Britain on July 25 and included 2 other vehicle types, but this is the date DefenseINK released an announcement with specific numbers and dollar amounts for the Cougar (US) portion. DID’s article also adds more background concerning Force Protection’s efforts & plans to increase production capacity.

May 31/06: BAE Delivering a Cougar Variant for Iraq’s $445.4M ILAV Contract. The contract could go as high as 1,050 Cougar vehicles if all options are exercised, and BAE will also be enagaged in production work.

May 31/06: GyroCam Systems LLC in Sarasota, FL received a $43.4 million firm-fixed-price, indefinite-delivery/ indefinite-quantity contract with a maximum ordering quantity of 67 of their 360-degree camera systems plus associated manuals, installation, deployment blocks, field support, and training. Manufacturing will be performed in Sarasota, FL, with installation on the Cougar JERRV ehicles in Iraq and Afghanistan. Work on the GyroCam contract is expected to be complete by May 2007. This contract is a limited competitive commercial contract award to GyroCam Systems LLC by the Marine Corps Systems Command in Quantico, VA (M67854-06-D-5034).

May 2/06: Force Protection Industries, Inc. in Ladson, SC received a $50.9 million firm-fixed-price, indefinite-delivery/ indefinite-quantity contract with a maximum ordering quantity of 79 Joint Explosive Ordnance Disposal Rapid Response Vehicles (JERRV) and associated manuals, spares, field support, and training. Work will be performed in Ladson, SC (60%) and Charlotte, MI (40%), and work is expected to be complete by May 2007. This contract is a sole source award to Force Protection Industries, Inc. by the Marine Corps Systems Command in Quantico, VA (M67854-06-D-5042). As DID noteds in our article, this contract is in addition to the 27 Cougars purchased by the Marines for use in Afghanistan and Iraq, and the 122-vehicle all-services order DID covered in May 2005.

May 18/05: Force Protection Industries Inc. in Ladson, SC received a $16.5 million firm-fixed-price delivery order under previously awarded contract M67854-05-D-5091. The delivery order is for 17 Cougar Joint Explosive Ordnance Disposal Rapid Response Vehicles (JERRV), associated manuals, and spares. A maximum of 122 vehicles can be ordered off of the contract, and this contract brings the delivery order total to 88. Work will be performed in Ladson, SC (60%) and Charlotte, MI (40%), and is expected to be complete by May 2006 [DID note: it completed in June 2006]. This contract is a sole source award to Force Protection Industries Inc. by the Marine Corps Systems Command, Quantico, VA. DID covered it.

Cougar HE in Iraq

May 16/05: Force Protection Industries Inc. in Ladson, SC received a sole-source $45.7 million firm-fixed-price, indefinite-delivery/ indefinite-quantity contract with a maximum ordering quantity of 122 Cougar Joint Explosive Ordnance Disposal (EOD) Rapid Response Vehicles (JERRV) and associated manuals, spares and field support. The initial delivery order is for 71 out of the 122 vehicles available on the contract. Work on this contract will be performed in Ladson, SC (60%) and Charlotte, MI (40%), and is expected to be complete by May 2006. This contract is a sole source award to Force Protection Industries Inc., as they are the sole manufacturer. The Marine Corps Systems Command in Quantico, VA issued the contract (M67854-05-D-5091).

While the Cougar has been deployed with the Marines since the fall of 2004 when the Corps purchased 27 Cougars for use in Iraq and Afghanistan, the May 16th order marked the first time that the other services will receive the armored vehicle. Under the contract, funded by the Joint Improvised Explosive Device (IED) Defeat Task Force, Force Protection Industries will manufacture the vehicles and provide program management and logistics support. The Marine Corps are the lead procurement agency to buy the 122 Cougars, which are to be distributed among the US Marine Corps (38 vehicles), Army, Navy and Air Force. The first vehicles are expected to reach the field by early fall 2005.

Footnotes

fn1. MNF-W is the western region of Iraq, encompassing the western elements of the Sunni Triangle (esp. Ramadi) and the neighboring Al-Anbar region. The region is current a focal point for operations in Iraq, owing to a multi-tribal revolt against Al-Qaeda and an energetic, organized pursuit of vendettas against them that has significantly altered the balance of power in that critical Sunni region. It remains an extremely violent and dangerous place, of course, in part because of that revolt.

Appendix A: Ramping Up Production Cougar assembly
(click to view full)

Force Protection has come a long way from its origins as Sonic Jet Performance, Inc., a boat maker who purchased Technical Solutions – and the accompanying rights to produce the South-African designed Cougar and Buffalo vehicles – from Garth Barrett in 2002. Initial interest was low, however, and the company has had issues with late delivery as it struggled to fill the initial orders it was given. At the beginning of 2004, Force Protection firm had just 12 employees.

At the same time, however, they were the only off-the-shelf, American-built, mine-resistant vehicle on the market – and the bottom line was, their product worked (see DefenseTech for an especially hilarious example). That positioning gave Force Protection the cushion it needed to ramp up production and grow the company from 2005-2007, as limited orders from the US military were supplemented by contracts for the British and Iraqis.

As of July 2006, more than 200 Buffalo and Cougar vehicles were deployed in Iraq and Afghanistan without a fatality, despite more than 1,000 mine detonations and IED attacks. Force Protection, Inc. also hired its 500th employee in July 2006, and a July 17, 20006 release noted that they are engaged in efforts to triple their internal manufacturing capacity. A second and third Cougar production line is being put in place following $41 million of equity financing, and production of its Buffalo variant is also slated to double.

Buffalo: IED test
(click to view full)

An August 10, 2006 release reveals that the firm delivered 11 of the 12 Cougar Joint Explosive Ordnance Disposal Rapid Response Vehicles (JERRV) requested, and both of the Cougar-derived Buffalo Mine Protected Route Clearance (MPCV) vehicles (aka. “The Claw”) to the U.S. government in July 2006. This compares to 19 Cougar and 3 Buffalo vehicles in June 2006, completing its May 2005 contract with the US Marine Corps for 122 vehicles one month after the expected end date.

Force Protection’s July 17/06 release said they will even make use of other companies’ capacity to fill present and future orders – and readers who peruse our coverage of Iraq’s 378-vehicle ILAV contract will note the addition of production at BAE Land Systems (York, PA and Anniston, AL) and fire truck manufacturers Spartan Chassis (Charlotte, MI) to the production network. By October 1, 2006, Force Protection could claim delivery of more than 30 Buffalo, Cougar, and Iraqi ILAV vehicles to the U.S. government.

The firm has stated that with the new measures in place, it believes that it can continue to expand production throughout the rest of 2006. Of course, its November 11, 2006 Force Dynamics co-production agreement with General Dynamics Land Systems (see below) also helps.

Then came the MRAP program. In November 2006, the MRAP program was slated to buy around 1,000 vehicles. But the US Congress was waking up to the fact that solutions offering far better protection than up-armored Hummers were available. Pressure steadily built on the US military, augmented by requests from the field. By January 2007, MRAP was a 4,100 vehicle program. By April, it was a 7,774 vehicle program that had added the USAF and Special Operations Command as customers.

That surge has meant competition from larger firms, as well as smaller entities like Garth Barrett’s new Protected Vehicles, Inc. For Force Protection, it has also meant continued expansion, including a new 430,000 square foot facility in North Carolina and additional production capacity from General Dynamics plants in Oxford, AL and Anniston, AL. Firms like Spartan Chassis in Michigan and Armor Holdings (now BAE) are also part of the Cougar’s production chain, and there are rumors that Textron may be added. With the MRAP program in full swing, Force Protection now says that it plans to have production capacity for up to 400 Cougar vehicles per month by February 2008.

As of September 2007, production per month has risen to 115 vehicles.

Appendix B: Additional Readings and Sources:

• Navistar moved to #1 in the MRAP competition with the MaxxPro, developed with Israeli firm Plasan Sasa.

• BAE’s MRAP orders, covering RG-33 family and Caiman orders, made them #2.

• Force Protection – Front Line Testimonials

• UK Forces Afghanistan Blog (April 13/11) – British-Australian co-operation helps deliver extra armour to Afghanistan. With the RAF fully engaged, an extra C-17 came in very handy, in order to get the Wolfhound into theater.

• Des Moines Register (March 24/11) – Brawny ‘buffalo’ helps Iowa Guard to hunt buried bombs

• UK MoD (June 17/08) – Cougar begins its transformation into the Ridgback

• Seeking Alpha (March 18/08) – What’s Behind Force Protection’s Significant Share Price Drop? An analyst llooks at how he got his predictions wrong.

• MarketWatch (Dec 19/07) – Force Protection loses ground to rivals. “MRAP orders were historically based on who could produce the number the DoD wanted, but greater concern was later based upon commonality with other existing vehicles in the fleet,” said Patrick McCarthy, an analyst for Friedman, Billings, Ramsey.”

• USA Today (Aug 2/07) – As explosives in Iraq get deadlier, makers of armored vehicles alter plans. Good history of Force Protection, and side-by-side comparison of the Cougar 4×4 with the M114 HMMWV. N.B. While FP has produced the most mine-resistant vehicles for US forces, at the time of publication they were in second place for MRAP program orders; the USA Today chart blurs this distinction.

• USMC (June 18/07) – MNF-W eyes MRAP. MNF-W stands for Multi-National Forces West in Iraq, covering the Sunni Triangle areas around Ramadi and Fallujah, and extending west into Al-Anbar province where Al-Qaeda’s heavy-handed actions resulted in an ongoing tribal revolt against them.

• USMC Commandant James T. Conway (March 1/07) – Memo to the Joint Chiefs of Staff re: MRAP [PDF format]. Includes information re: a requested policy change that would use only MRAP class vehicles “outside the wire” (i.e. off-base) in MNF-W, barring special commander’s waivers.

• 10Q Detective (Aug 26/06) – Force Protection–Explosive Turnaround Story. In 2001, Force Protection looked like it might go out of business. Much has changed. An interesting business/stock analysis of Force Protection, Inc., with details the rest of DID’s coverage does not include. DID adds that we don’t do stock recommendations, that this is one source of information among many whose reliability you must evaluate entirely on your own, and that if you buy stocks that’s 100% your decision and your risk.

• US Marine Corps (April 8/06) – Cougar Roars Through Iraq

• US Marine Corps (Feb 2/06) – Cougar on Prowl for IEDs

• Force Protection Industries – Cougar family. Includes one of the best defense site tag lines we’ve ever seen, anywhere: “Drop your purse, it’s not a Hummer.”

• DoD report and Corporate News Release.

• GlobalSecurity.org – Cougar HEV [Hardened Engineer Vehicle]

• DID (March 23/06) – $191.9M more to AM General for M1151 & M1152 Humvee Jeeps (updated). Explains why the Cougar is important by illustrating the problems with the Hummer, and looking at how key design differences affect battlefield survivability.

• DID (Feb 10/06) – $18.6M for More Buffalo Mine Clearance Vehicles. If you think the Cougars are impressive… meet ‘The Claw’

• DID (June 29/05) – NY Times on Procurement Issues for Armored Vehicles to Iraq (Updated). A surprisingly good article from the NY Times, with solid background regarding the Cougar system’s difficult procurement start in the Pentagon bureaucracy and subsequent turnaround die to events in Iraq.

• Military.com (Sept 15/04) – New Cougar HEV to hit Corps soon

FOCUS Article search tag: cougarfocus

Americas

• An SM-6 air defense missile interceptor fired from the USS Princeton has set a new distance record for an intercept during testing at the Point Mugu Test Range on September 22. Using data from a remote airborne sensor and equipped with the latest Aegis Baseline 9, the missile beat the previous long-distance intercept record held by the USS John Paul Jones’ test in January.

• The US Air Force Special Operations Command (SOCOM) has requested funding in the FY 2018 defense budget for the modification of an AC-130W with a laser weapon. If approved, modifications will start in FY 2020 using an existing aircraft now stationed at Cannon Air Force Base. However, the plan has received skepticism from some quarters with Frank Kendall, the Pentagon’s chief weapons buyer, noting airborne lasers continue to face issues with weather and atmospheric conditions.

• Airbus has delivered the first batch of AS565 MBe variant helicopters to the Mexican Navy. The service ordered ten back in 2014 as the variant’s launch customer, coming with a new Safran Arriel 2N engine that improves its performance in hot & high conditions and enables it to achieve a top speed of 278 km/h and a range of 780 kilometers. Three more are to be delivered before the end of 2016 and the remaining six by early 2018.

Middle East & North Africa

• Bahrain’s purchase of F-16 fighters are believed to come with strings attached, with the Pentagon set to include a “declaration of concern” into the draft notification of the sale. Prior to the sale proceeding, Washington wants Bahrain to improve their human rights, although they did not specify what steps they want the Gulf kingdom to take. Other Gulf nations awaiting US fighters, namely Kuwait and Qatar, have not been required to undergo such conditions.

• Houthi rebels fighting in Yemen’s ongoing civil war have claimed the successful sinking of an HSV-2 Swift hybrid catamaran operated by the UAE. The UAE military said on Saturday that a boat under their command was involved in an “incident” in the Bab al-Mandeb Strait, but also stated that no casualties were suffered. It’s believed that the vessel was carrying aid.

Europe

• A decision on Germany’s small transport requirement is expected for later this fall. The winner will replace existing Transall aircraft, due to be retired in 2021, for missions that the new Airbus A400M could not perform due to its larger size. A likely candidate touted by Reuters is Lockheed Martin’s C-130J, which could be purchased and used jointly with France or bought second-hand from the UK.

Asia Pacific

• A spokesperson for the Philippine Air Force has said the service is looking to acquire 36 additional FA-50PH fighter jets from Korea Aerospace Industries (KAI). The official said the procurement is needed “to meet a requirement specified in Flight Plan 2028 to “detect, intercept, and neutralise” any perceived threat in its exclusive economic zone (EEZ).” This adds to 12 FA-50PH fighters already ordered in 2014, with deliveries set to conclude in late 2017.

• Iran has unveiled a new unmanned combat aerial vehicle supposedly based on a captured American RQ-170 Sentinel. Dubbed “Saegheh”, or lightening, the UCAV will be able to carry up to four guided munitions, according to Iranian state media. In 2011, a US RQ-170 reconnaissance UAV was captured in eastern Iran which Tehran claim was taken over and landed by its cyberwarfare unit.

Today’s Video

Maiden flight of the Yak-152:

Americas

• Lockheed Martin has revealed that they successfully launched a Vector Hawk canister-launched small UAV from their Marlin MK2 autonomous underwater vehicle (AUV). The disclosure was made during the Annual Navy Technology Exercise (ANTX) in August. To transmit the launch command to the Marlin, Lockheed engineers relied on the Submaran, an unmanned surface vehicle (USV) developed by Ocean Aero, as a relay.

Middle East & North Africa

• It’s been reported that the US State Department has finally cleared the multi-billion sale of fighters to Qatar, Kuwait and Bahrain. Sources told media outlets that US officials have begun to notify lawmakers informally about the sale of 36 Boeing F-15 fighter jets to Qatar valued at around $4 billion, 28 F/A- 18E/F Super Hornets (plus options for 12 more), to Kuwait for around $3 billion, and 17 Lockheed F-16 fighter jets to Bahrain, plus upgrades of up to 20 additional aircraft. The deals will be formally announced once the 40-day informal notification process has ended.

• Eurofighters purchased by Kuwait will come equipped with Lockheed Martin’s Sniper targeting pod, with 14 more already requested for its F/A-18 legacy Hornets. Deliveries will commence in 2017 for integration. Once fitted, the Eurofighter will become the 9th platform to use Sniper, joining variants of the F-15, F-16, F-18, A-10, B-1, B-52, F-2 and Harrier.

Africa

• Building is underway by the US military of a $100 million facility for the use of MQ-9 Reaper operations in the region. The news comes less than a year after the announcement was made that Reaper and Predator bases in Ethiopia and Djibouti would be closed. MQ-9s operated from East African bases are used primarily for missions against Islamic insurgents such as al-Shabaab in Somalia and AQAP in Yemen.

Europe

• Romania has become the latest operator of the F-16 following delivery of the first six from a total of twelve from Portugal. The $203 million deal includes nine F-16AM single-seaters and three F-16BM two-seaters as well as an overhaul of engines; initial logistics support; training of up to nine pilots, 75 technicians, and four mission planers; two years of on-site support; and updating the fleet to operational flight program (OFP) development software M5.2R standard, with support from Lockheed Martin. More F-16s from another NATO member are being sought by Romania who currently operate a fleet of MiG- 21 LanceR aircraft.

Asia Pacific

• Saab is to pursue Gripen figter sales to the Philippine Air Force, with plans to open an office in Manila by the end of the year. Speaking on the opening day of the Asian Defence and Security 2016 (ADAS 2016) exhibition in Manila, Carl-Erik Leek, Saab’s executive vice-president in the Asia Pacific, said the new office would be the centre of the company’s marketing activities in the country. Current efforts in the country have been coordinated from the company’s regional offices in Thailand.

• Delivery of the Malaysian Air Force’s fourth and final A400M transport aircraft will happen early next year. The first aircraft was delivered in March 2015, the second came early this year while the third was received in the middle of this year. Gen Tan Sri Roslan Saad told reporters that the latest A400M will come with a software upgrade.

• Boeing rolled out the first of its 12 P-8A Poseidon aircraft for the Royal Australian Air Force during a ceremony in Seattle. The maritime patrol and surveillance aircraft, based on the design of Boeing’s 737-800 fuselage, will fly to Australia in November. Featuring a weapons bay as well as under-wing and under-fuselage hard points for weapons, the aircraft will be used for anti-submarine warfare, anti-surface warfare and shipping interdiction as Australia looks to assert itself as a regional security player in the region.

Today’s Video

Taiwan’s future air warfare DDG shoots down attacking F-14s:

MiG-21 ‘Lancer’
(click to view full)

The MiG-21 is reaching the end of its service life, but it can still be effective for a little while. India’s refurbished MiG-21 ‘Bisons’ combined Russian, Indian and Israeli technology to excellent effect in the COPE India 2004 and 2005 exercises with the USAF, and there’s even a Russian-Israeli MiG-21 2000 variant that exists for general sale. Israeli companies have made something of a specialty of refurbishing both Western and Soviet fighters with modern radars, avionics, and Israeli weapons like the Python air-air missile, giving the systems new life. An all-Israeli effort was undertaken for Romania, in order to create Romania’s MiG-21 ‘Lancers’ via upgrade.

The question is what comes next. In 2005, rumor had it that the success of those efforts had led to a more ambitious fighter deal between Israel and Romania for upgraded Cheyl Ha’Avir F-16A/Bs – but that deal appears to have fizzled for unknown reasons. Other firms entered the mix, including Saab with its JAS-39 Gripen and, surprisingly, EADS’ Eurofighter. Then the USA appeared to have flown away with the fighter replacement deal – but, not so fast.

Romania, Romania, Romania: Drivers and Options Slovakian MiG-29,
“Digital Thunder” camo
(click to view full)

Romania faced 3 big questions in deciding on its fighter purchase. They involved capability, finances, and foreign approvals. To those 3, add a pair of elements that are almost always present in fighter purchases: politics, and vanity.

Capability is always a concern, and Russia’s 2008 invasion of Georgia has only heightened regional concerns. While the Russian Air force is a shadow of its former self, so are the air forces of its former Warsaw Pact satraps. Unfortunately, modern NATO-compatible fighters are very costly, and East Bloc countries in particular feel the lack of any fielded low-budget options to fill the niche once occupied by planes like the MiG-21 and F-5. The natural response is to adopt NATO’s classic approach, and attempt to compete on quality.

Given the presence of upgraded SU-27 family fighters in the Russian fleet, competing on quality isn’t easy. Purchases from Russia itself, such as modern MiG-29/35 aircraft, offer another option. If the most likely future threat is seen as coming from Russia, however, that isn’t a viable option.

The Czech Republic and Hungary’s choice of 10-year leases for 14 fourth-generation JAS-39 Gripen aircraft illustrate one possible solution.

In 2005, reports in the Israeli press indicated that Romania might go another route, and spend $150 million to purchase “dozens” of used F-16A Netz (Hebrew for “Falcon”) aircraft from Israel. Israeli contractor Elbit Systems would be the lead contractor for an Israeli deal, overseeing their refurbishment and upgrade with newer Israeli electronics.

The one potential downside to the F-16 was the necessity of US approval for technology transfer or sale. Israel would be transferring the weapons themselves, not just maintaining them with Israeli technology. Formal American approval has always been required for any transfer of US equipment to 3rd countries. Fortunately, sales to a new NATO member like Romania were unlikely to attract any vetoes from the USA. Indeed, rumors in 2005 said that Romania had been given a provisional green light by the American government and by Lockheed Martin.

That approach seemed to be a good deal for both parties, and became a template for Romania’s search: buy a used version of the most widely-adopted fighter in NATO, with electronics that would be interoperable with NATO standards.

Evaluation & Options F-16I Soufa
(click to view full)

In 2005, the talk centered on an Israeli deal. The reports noted that the Israeli Air force (“Cheyl Ha’Avir”) planned to phase out at least some of its 75 older F-16A/B planes as it introduces 102 new F-16I Soufa (Storm) jets, which incorporate all of the F-16 Block 52 advancements plus Israeli electronics and weapons. Reports claimed that a special committee had been set up to coordinate the various stages of what seemed to be a complicated deal.

So, what did the Romanians have to say?

The Romanian Ministry of Defense admitted that they were undertaking “an evaluation of the feasible alternatives for the replacement of the MIG-21 Lancer aircraft,” with a decision scheduled for 2006-2007 and a target date of 2010-2012 for initial operational capability. Thy also noted, however, that they were evaluating more than one type of plane. Defense Minister Atanasiu said that Romania needed at least 24 new aircraft, and added that a leasing system, auctions, or even participation in the F-35 Joint Strike Fighter (JSF) program were all under consideration.

JAS-39 Gripen
(click to view full)

Suggestions concerning the F-35 were probably just vanity talking. Romania has a proud cultural history, but its economy hasn’t yet caught up to the $70-100 million per plane cost of the F-35 JSF. The truth has always been that leases or used aircraft from other countries were Romania’s only realistic options. Its possible choices also tend to narrow down to the lightweight medium fighter segment, in order to achieve even the 24 modern fighters desired, in return for the kind of money the country had chosen to spend.

That left a small set of options:

• Used F-16 Falcons, from Israel or from other NATO countries, including the USA (chosen).

• Mirage 2000s, possibly used, from France.

• Leased JAS-39 Gripens from Sweden. These may be more expensive than used aircraft, but they are far more capable, may offer maintenance cost improvements, and come with industrial offsets and leasing options.

• Russian aircraft with upgraded Western avionics etc., much as Israel did for their Lancers. The MiG-29 is the only modern Russian fighter in Romania’s likely cost profile. Downsides include less NATO interoperability during operations outside of Romania, and extra costs per plane due to the required refits.

Within this group, the F-16 was always the most probable choice, barring a really excellent deal from Saab. After canvassing the Israelis, the Dutch, and even the Americans for offers, Romania finally settled on F-16s from Portugal in September 2012. The delays in getting to that point meant that the planes wouldn’t enter service until 2016.

Contracts & Key Events 2011 – 2016

Slow deal with Portugal. PoAF F-16A OCU
(click to view full)

September 30/16: Romania has become the latest operator of the F-16 following delivery of the first six from a total of twelve from Portugal. The $203 million deal includes nine F-16AM single-seaters and three F-16BM two-seaters as well as an overhaul of engines; initial logistics support; training of up to nine pilots, 75 technicians, and four mission planers; two years of on-site support; and updating the fleet to operational flight program (OFP) development software M5.2R standard, with support from Lockheed Martin. More F-16s from another NATO member are being sought by Romania who currently operate a fleet of MiG- 21 LanceR aircraft.

February 24/16: The Romanian Ministry of Defense has announced plans to purchase 12 more second-hand F-16 fighters in 2017. The procurement will the follow the delivery of F-16s from Portugal in September, which cost the government $695 million and included training and upgrades of systems from Lockheed Martin. The ministry has requested information from NATO allies (including the US and five European members) of available supplies with plans to purchase the fleet by auction.

Nov 8/13: Ancillaries. The US DSCA announces Romania’s official request to clear an initial transfer of key weapons and electronics that “will be procured through a third party transfer from Portugal,” as part of their F-16 MLU re-sale. Articles and services would include:

• 30 AIM-120C Advanced Medium Range Air-to-Air Missiles (AMRAAM). Variant not mentioned, most current export variant is the C7.
  
• 5 AIM-120C Captive Air Training Missiles (CATMs)
  
• 60 AIM-9M Sidewinder Missiles. The most widely-fielded version, but less advanced than the AIM-9X, which would have required digital upgrades to the F-16s.
  
• 4 AIM-9M CATMs
  
• 48 LAU-129 Launchers
  
• 10 GBU-12 Enhanced Guided Bomb Units
  
• 18 AGM-65H/KB Maverick Missiles
  
• 4 AGM-65 CATMs
  
• 15 MIDS-LVT boxes for Link 16 connectivity
  
• 2 MIDS Ground Support Systems
  
• 13 Embedded Global Positioning Systems/Inertial Navigation Systems (EGPS/INS) with GPS Security Devices, Airborne
  
• 3 AN/ALQ-131 Electronic Countermeasure Pods
  
• Plus spare and repair parts, support equipment, tanker support, ferry services, repair and return services, software development/integration, test and equipment, supply support, personnel training and training equipment, publications and technical data, and other forms of support. The estimated cost is up to $457 million.

That’s more than a bit thin on associated weapons. Romania won’t have any existing stocks of these items from its upgraded, NATO-compatible Lancer fleet, either, but they may be able to transfer some of their existing RAFAEL Python 3 missiles and LITENING pods. Within the DSCA’s set, implementation won’t require any additional US government or contractor representatives in Romania. The principal contractors will be:

• Elbit Systems of America in Fort Worth, TX
  
• Pratt and Whitney in East Hartford, CT (Engine support)
  
• BAE Systems Inc. in Arlington, VA
  
• Lockheed Martin Corp. in Fort Worth, TX (F-16 OEM)
  
• Northrup Grumman Aerospace Systems in Redondo Beach, CA (ALQ-131)
  
• ViaSat Inc. in Carlsbad, CA (MIDS/ Link-16)
  
• Data Link Solutions LLC in Cedar Rapids, IA (MIDS/ Link-16)
  
• Snap-On Inc. in Kenosha, WI (Support equipment)
  
• Booz Allen Hamilton Engineering Services, LLC in McLean, VA (Support)

Raytheon, who makes the AIM-9, AIM-120, and AGM-65 missiles, wasn’t mentioned. Source: US DSCA #13-59.

DSCA: F-16 ancillaries and weapons

Oct 11/13: Contract. Romania’s government announces a signed contract with Portugal, and an initial EUR 100 million payment of of the EUR 600 million total. According to Defense Minister Mircea Dusa, the first modernized F-16s will reach Romania in 2015, and the full squadron will be on hand for full MiG-21 Lancer replacement by 2017. Meanwhile, Romania will send 80 people to Portugal for flight and maintenance training. Source: actmedia, “Defense Ministry signs contract for F-16 aircraft purchase”.

Contract

June 19/13: OK. The Romanian government approves the bill for the F-16 purchase. Source: actmedia, “Defense Ministry signs contract for F-16 aircraft purchase”.

April 22/13: Slooow. Reports indicate that negotiations with Portugal will take until May 2013 (the deadline is June), but that dealing with the American bureaucracy will take until September 2013 – a year after Romania accepted Portugal’s bid.

Romania may also be interested in another 9 planes, which would bring their replacement fighters to 21. They currently operate 40 MiG-21 Lancers. China MoD News Channel.

Sept 24/12: From Portugal. Romania apparently outbids Bulgaria for 12 PoAF F-16s, offering EUR 600 million over 5 years for the jets (EUR 125 million) and associated training and maintenance (EUR 475 million). The planes will arrive in 2016, by which time Romania’s pilots will also be fully trained.

The fighters are described as “multirole,” but this is a bit of a stretch for the F-16 Block 15 OCUs. They can use AIM-120 AMRAAM air-to-air missiles, but their previous-generation AN/APG-66 radars have limited ground capabilities, and the fighters’ main precision strike weapon is the short-range AGM-65 Maverick missile. On the other hand, the price for 12 was pretty good. Other offers had been tabled by Saab and by the USAF for 24 fighters at about double the cost, but as the weighting of this deal shows, shrinking the fighters by half does not halve the total cost.

Meanwhile, an actmedia report quotes National Defence Minister Corneliu Dobritoiu, who spends his time touting the fact that Romania observed all of the EU’s bureaucratic requirements to the letter. The EU had wanted an open competition, instead of a government-to-government deal, and sent a warning letter in early September. Dobritoiu points out that government-to-government deals are allowed. Romania’s actmedia | Balkans.com | Bloomberg | Bulgaria’s Focus news agency | Romania’s Stirile Pro TV [in Romanian, with video].

Deal with Portugal for 12 F-16s

Aug 23/12: Portugal? actmedia reports that the Romanian defense ministry has sent experts to inspect some of Portugal’s 45 F-16s, which were found to be in excellent condition. The PoAF is likely to be selling some of 201 Squadron’s Block 15OCU models, not 301 Squadron’s 20 upgraded F-16MLUs. On paper, that sounds an attractive solution for both parties, given Portugal’s dire fiscal position, and the fact the Dutch option is apparently no longer available.

This news item does not seem to have been confirmed in the Portuguese press yet, and online rumors that up to 12 Portuguese F-16s were available for sale have floated for years without substantiation. That latest statement is not available on Agerpres’ website – the national news agency cited by actmedia – though an earlier article from June does mention the Netherlands and Portugal as 2 potential sources for used F-16s. Romania’s actmedia re: rumors and inspections | Agerpres [in Romanian] | F-16.net re: Portugal.

June 21/12: Dutch deal? Radio Netherlands reports that:

“Romania is interested in buying 15 surplus F-16s from the Dutch airforce… On Thursday, the Defence Ministry confirmed reports that it is looking to sell equipment in order to raise funds… [as it] must shave a billion euros from its budget. The ministry is also in preliminary discussions with an undisclosed number of potential buyers, including Chile, which are interested in eight Cougar helicopters. Today, parliament will discuss the potential sale of 80 Leopard tanks to Indonesia. The ministries of defence and foreign affairs are in favour of the sale but a majority in parliament is against the transaction.”

Sept 19/11: All we can afford. Romanian President Traian Basescu tells Pro TV that Romania cannot afford to buy F16 fighters without a long-term financing solution, as they can only pay up to $300 million per year for the next 5-6 years. From Romania’s actmedia:

“As a NATO member, Romania must have 48 fighters compatible with the North Atlantic Alliance’s equipment. Whether they are F16 planes, Rafale or SAAB, what matter is to find a financing solution,” said Basescu.He added the United States proposed a regional project whereby several NATO members, such as Bulgaria, Croatia, possibly Hungary, would create a pool to support the purchase of F16 planes.”

Bulgaria has reportedly been offered US financing for a buy of 8-12 F-16 fighters, though terms were not revealed or confirmed. U.S. Ambassador Mark Gitenstein added that the regional pool option would involve new planes, extending Lockheed Martin’s production line. That’s certainly in America’s interest, as it would extend the F-16 production line, but it’s also likely to make the planes more expensive.

2009 – 2010

Italian Eurofighters
(click to view full)

May 11/10: Eurofighter. The Eurofighter consortium and member firm Alenia Aeronautica chime in with an offer of their own: 24 used Italian Tranche 1 Eurofighters, plus up to 5,000 skilled jobs created by 100% industrial offsets and local technology transfer. The price, including logistics support and training, would be EUR 1 billion (about $1.3 billion), matching the price tag for used F-16s. Deliveries would take place between 2011-2012.

Italian Tranche 1 Eurofighters differ sharply from the other competitors in one crucial respect. Barring additional upgrades and equipment, they lack precision attack capabilities. In contrast, both the F-16 Block 25+ and the JAS-39 Gripen are full multirole fighters, able to target invading land forces, support Romanian troops on the ground, or conduct precision strikes against key enemy targets.

That same day, the Romanian Senate’s Defense Commission calls in representatives of rivals Eurofighter and Sweden’s Saab, stating that it wished to hear from Lockheed’s competitors. The decision to buy any fighter requires Parliamentary approval. Defense News.

April 15/10: Gripen. Agence France Presse quotes Jerry Lindbergh, a Swedish government official in charge of defense exports, who says that Sweden could provide 24 new “fully NATO interoperable Gripen C/D fighters, including training, support, logistics and 100 percent offset for the amount of one billion euros ($1.3 billion),” paid off over 15 years with low interest rates.

In essence, they’re offering newer and better fighters for the same price as very-used F-16s. The following quote from the Defense News report is difficult to take seriously in terms of future orders, but it does illustrate one of the political factors in play:

“Bucharest is also considering buying 24 new F-16 jets and later 24 F-35 jets, the defense ministry said, stressing this was part of the Romanian-U.S. “strategic partnership.”

March 23/10: Nothing new. At a Supreme Council of National Defense meeting, Minister of National Defense Gabriel Oprea presents a report, saying that Romania does not have the financial resources necessary for the acquisition of multirole aircraft. As such, the ministry proposes to buy 24 used F-16s, in order to replace Romania’s upgraded MiG-21 Lancers and their rising operations and maintenance costs.

Lockheed Martin personnel in Romania have reportedly confirmed that the aircraft with be F-16 C/D fighters, without mentioning the production year or their number of flight hours. The US DSCA request noted AN/APG-69v1 radars and PW F100-220 IPE engines as expected equipment, however. This strongly suggests F-16 C/D Block 25 aircraft, delivered between 1984-1986, and currently operational with American Air National Guard units.

Romanian sources say that the planes will be free, but there will still be costs of about $400 million for personnel training in the USA, $500 million for refurbishment and infrastructure improvements, and money to equip the planes with weapons. The total sum is estimated to be about $1.2 billion. The final draft of the agreement will reportedly be signed by the Romanian and American governments. Romanian Presidency release | Google translation of same || Mediafax Romania [in Romanian] | Hotnews.RO | Radio Free Europe | Reuters.

2005 – 2008

Israeli F-16B
(click to view larger)

Sept 24/08: No decision. A Curierul National interview quotes Romania’s Defence Minister Teodor Melescanu as saying that no decision has been made yet regarding Romania’s fighter replacement. Key quotes include:

“…we do not have this money… ready to spend it when necessary. However, the executive has given us the possibility, by Emergency Ordinance no. 111/2006, which allows ministries to contract loans on the international banking market, we can employ such loans up to the limit of 2.38% of GDP… in a predictable financing line for the period 2009-2013. We also consider achieving these acquisitions with the participation of internationally prestigious companies, which we would attract in the modernisation and privatisation process of the defence industry.”

Indeed, the MiG 21s will deplete their flight resource by 2010-2011 and therefore we must absolutely start the programme of purchasing a multi-role plane… The issue is the purchase of 48 planes, the budget effort exceeding 3.5 billion lei… financed by foreign loans, using the mechanisms of Emergency Ordinance no. 111/2006… As there appeared some information about the purchase of second-hand planes, too, I want to emphasize that, personally, I think we are too poor to buy cheap, used things. I do not think that the solution of second hand devices is the best option and therefore I feel inclined to the purchase of new aircraft. And I insist on the human resource. We have valuable pilots and we cannot waste this value we have… As I have said, there are five models of multirole planes that meet the technical-operational requirements set up by the specialists of the Romanian Air Force. We are considering the F-16 plane… the JAS-39 Gripen… the Eurofighter Typhoon… the F18… and the Rafale [The F-35 was eliminated, since only operational aircraft were considered].

…To take a decision based on real and as complete as possible data, the Ministry of Defense has conducted information activities during the recent years… As a result of these activities the 5 types of airplanes I mentioned above were identified. But no decision has been taken yet.”

OK ANG F-16Cs
over Iraq
(click to view full)

May 19/08: USA The US Defense Security Cooperation Agency announces [PDF] Romania’s formal request for 48 F-16C/D Block 50/52 Aircraft, in a surprisingly rich deal that could run as high as $4.5 billion if all options are exercised. There are no known industrial offset agreements in connection with this proposed sale, and implementation will require multiple trips to Romania involving U.S. Government and contractor representatives for technical reviews/support, program management, and training over a period of 15 years.

The full request involves a number of contractors, and a few contracts whose equipment choices are still competitive. Note that even this announcement is not necessarily determinative. A March 19/02 DSCA announcement [PDF] covered a $1.7 billion offer to Austria of 30 updated and refurbished F-16s, but that country ended up buying EADS’ Eurofighter instead. These competitions are never truly over until a contract is signed.

• The first component of the proposed Romanian deal involves 24 refurbished and upgraded USAF F-16C/D Block 25 aircraft, with Pratt & Whitney’s F100-PW-220 Increased Performance Engines (IPE) and Northrop Grumman APG-68v1 radars.

• The second component of the deal involves 24 new-build F-16C/D Block 50/52 aircraft. Romania can choose either the Pratt & Whitney F100-PW-229 engine, or General Electric’s F110-GE-129 Increased Performance Engine (IPE). These F-16s will all be equipped with Northrop Grumman’s APG-68v9 radar – a much more advanced radar than the APG-68v1, especially with respect to its ground surveillance and ground attack capabilities.

The proposed order would also include up to:

• 24 Conformal Fuel Tanks (pairs) for the Block 50/52s
  
• 5 F100-PW-220 IPE spare engines for the Block 25s
  
• 4 F100-PW-229 or F110-GE-129 IPE spare engines for the Block 50/52s
  
• 4 APG-68v9 spare radar sets;
  
• 6 Joint Helmet Mounted Cueing System helmet-mounted displays
  
• 4 Link-16 Multifunctional Information Distribution System-Low Volume Terminals;
  
• 2 Link-16 Ground Stations;
  
• 60 LAU-129/A launchers, which can fire both AIM-9 Sidewinder and AIM-120 AMRAAM missiles;
  
• 30 LAU-117 launchers;
  
• 4 AN/ARC-238 Single Channel Ground and Airbo
  

e Radio Systems (SINCGARS) with HAVE QUICK I/II;

• 4 Global Positioning Systems (GPS) and Embedded GPS/ Inertial Navigation Systems (INS);
  
• 12 AN/AAQ-33 Sniper or AN/AAQ-28 Litening Targeting Pods;
  
• 4 Tactical Air Reconnaissance Systems or DB-110 Reconnaissance Pods (RECCE);
  
• 4 AN/APX-113 Advanced Identification Friend or Foe (AIFF) Systems;
  
• 28 AN/ALQ-213 Electronic Warfare Management Systems;
  
• 28 of ITT’s AN/ALQ- 211 Advanced Integrated Defensive Electronic Warfare Suite (AIDEWS); or Raytheon’s AN/ALQ-187 Advanced Countermeasures Electronic Systems (ACES), or BAE’s AN/ALQ-178 Self-Protection Electronic Warfare Suites (SPEWS).

The principal contractors, and some of the items they are responsible for, include:

• BAE Advanced Systems in Greenlawn, NY (APX-113 AIFF, ALQ-178)
  
• Boeing Corporation in Seattle, WA
  
• Boeing Integrated Defense Systems: St Louis, MO; Long Beach, CA; San Diego, CA (JHMCS)
  
• Raytheon Company: Lexington, MA; Goleta, CA (ALQ-187)
  
• Raytheon Missile Systems in Tucson, AZ
  
• Lockheed Martin Aeronautics Company in Fort Worth, TX (F-16s)
  
• Lockheed Martin Missile and Fire Control in Dallas, TX (Sniper pods)
  
• Northrop-Grumman Electro-Optical Systems in Garland, TX (LITENING pods)
  
• Northrop-Grumman Electronic Systems in Baltimore, MD (APG-68 radars, ALQ-213 with Terma)
  
• Pratt & Whitney United Technology Company in East Hartford, CT (engines)
  
• General Electric Aircraft Engines in Cincinnati, OH (engines)
  
• Goodrich ISR Systems in Danbury, CT (DB-110 REECE pods)
  
• L3 Communications in Arlington, TX.

The deal would also include support equipment, software development/integration, tanker support, ferry services, CAD/PAD, repair and return, modification kits, spares and repair parts, publications and technical documentation, personnel training and training equipment, U.S. Government and contractor technical, engineering, and logistics support services, and other related elements of logistics support. This list suggests an extensive range of support that is unique to the USAF.

DSCA: used & new F-16s requested

Oct 19/07: Eurofighter. China’s government-controlled Xinhua agency quotes Eurofighter’s program director for Romania Giuseppe Paoletti as saying that that Eurofighter is making Romania an offer of 24 Typhoon aircraft, with the first operational squadron provided for 2010 and the rest delivered in the 2010-2014 period. He also reportedly said that Finnmecanica of Italy was interested in buying the local Craiova-based Aircraft Factory, which may offer technical support and maintenance for the Typhoon warplane. The statements reportedly came at a press conference organized within the EXPOMIL 2007 show in Bucharest. Xinhua story.

At over $100 million per aircraft, the Eurofighter was not expected to be a major contender given its cost.

Oct 19/07: Gripen. Gripen International is also attending the EXPOMIL 2007 show in Bucharest, and meeting with senior government officials [release is in Romana].

2006: Gripen. Gripen International (Saab & BAE) introduces a Romanian language web site promoting the JAS-39 Gripen as Romania’s best choice.

Nov 25/05: Israel. DID’s article covering an Israeli RFI for new trainer aircraft notes another area of significant Israeli-Romanian cooperation: Romanian IAR-99C trainer aircraft with Israeli avionics that include embedded training capability. This could create an interesting barter angle to any potential F-16 Netz deal.

Oct 31/05: Nothing but Netz. Reports surface that Romania is discussing a $150 million buy of F-16A/B Netz (Heb. “falcon”) aircraft with Israel for “dozens” of aircraft. The Israelis could conceivably sell the used F-16s quite cheap, knowing that the refurbishment contracts would be lucrative. F-16.NET | Avianews.

Feb 4/05: Belgium? Romania is reportedly asking about used Belgian F-16s. F-16.NET report.

Americas

• A MQ-8B Fire Scout was used to laser designate a moving target for an AGM-114N Hellfire missile fired from an MH-60S for the first time. Conducted on September 14, the test was part of a program to use the drone as a remote designater for the helicopter to shoot moving targets . The successful Hellfire shot marks a significant milestone in the integration between Navy-manned helicopters and unmanned assets.

• The Canadian government is currently assessing data from defense manufacturers for this summer’s request for up-to-date information on options for the replacement of its CF-18 fighters. Specifics wanted by the government were on areas including fighter capabilities and potential economic benefits any sale would bring. In a bid to be selected, Boeing has been citing the work opportunities that would be available to Canadian firms across the country if the federal government were to purchase their F/A-18 Super Hornet, with other competitors coming in the form of France’s Dassault, Sweden’s Saab and the Eurofighter consortium. Data from Lockheed Martin is also being considered, even though Ottawa has vowed not to select its F-35.

• Initial operational capability has been given by the USAF Air Combat Command for the QF-16 full-scale aerial target (FSAT). All 15 QF-16s located at the 82nd Aerial Target Squadron at Tyndall Air Force Base, Florida have been approved for target operations. Due to replace the legacy QF-4 aerial target, the QF-16 will introduce fourth-generation fighter capabilities in the aerial target mission, maintaining all inherent capabilities of the baseline F-16 Fighting Falcon, including supersonic flight and 9 G maneuverability.

• Israel Aerospace Industries’ (IAI) Heron 1 could be produced in Brazil, if the platform is selected for a new requirement with the nation’s air force. Local firm Avionics Services have teamed with IAI to offer the UAV, having experience already servicing Heron’s operated by the Brazilian police force. A tender for the deal is expected to be released early next year.

Middle East &North Africa

• 516 additional US troops will be sent to Iraq as Baghdad gears up for its offensive to take the city of Mosul, occupied by the Islamic State since June 2014. Iraqi Prime Minister Haider al-Abadi stated that the US is adding what he calls a “final increase” of American forces. US Secretary of Defense Ash Carter confirmed the upcoming deployment and reiterated that the troops would not act as front-line combat troops, instead advising Iraqi security forces and militias as well as Kurdish Peshmerga fighters.

Africa

• The US Army has awarded Bell Helicopters a total of $86.9 million in foreign military sales contracts to supply Huey II helicopters. Kenya and Uganda will receive five helicopters each in deals worth $52.1 and $34.5 million respectively. Work for both projects will be performed in Ozark, Ala., with an estimated completion date of Dec. 29, 2017. Both governments operate a mishmash of Russian, Chinese, and US-made helicopters.

Europe

• A proposal by MBDA to offer its Medium Extended Air Defense System (MEADS) to Germany will be “scrutinized” by the Defense Ministry prior to submission for parliament approval next Spring. The $ 4.5 billion missile defense system, developed in conjunction with US giant Lockheed Martin, won out against Raytheon’s Patriot system, but the companies have been tasked to meet tough performance milestones in order to retain the contract. Lockheed and MBDA had hoped to finish negotiations with Germany by the end of year, but those prospects dimmed after the companies missed their goal of submitting a proposal by the end of July.

• The EU Commission has submitted a plan to invest some 90 million euro ($100 million) in a joint research project lasting between 2017-2019, in order to boost the bloc’s joint defense and security. The pilot scheme marks some what of a turning point for the EU, which has seen defense research spending drop by a third since 2006. When compared to the US, the EU Commission’s funding allocation into new defense technologies pales in comparison to the $18 billion set aside Washington. Meanwhile, the EU’s duplication of defense items outnumbers that of the US; they have 19 types of armored infantry fighting vehicle, compared with one in the US.

AsiaPacific

• Bharat Electronics Limited (BEL), an Indian defense electronics giant, aims to develop into a leading missile systems integrator within the next five years. An investment of more than $120 million is being pumped into the development of a Defence Systems Integration Complex at Palasamudram in Andhra Pradesh in southern India which, when completed, will be that country’s largest missile systems integration facility where missile systems such as navigation, seeker, radar, fire control and guidance will be manufactured. BEL won’t delve into missile development however, instead focusing on the development of electronics for missiles as well as building technical expertise and infrastructure for the integration of missile systems.

Today’s Video

Having just been awarded IOC, a look back at the QF-18’s first full flight:

QF-16: 1st flight
(click to view full)

QF-16s are former F-16 fighters that will be fitted with equipment for remote-controlled flight, and used as aerial targets and decoys for testing against air-air missiles, radars, surface-air missiles, etc. Could they be used for more than that?

The QF-16 is a follow-on to the QF-4 aerial target drone, which are converted by BAE Systems. The USAF is running out of F-4 family airframes to convert, and production is set to end in FY 2013. The QF-16s will be their replacements, but the conversion process must still be developed and tested. BAE Systems won’t be leading the QF-16 program, however; Boeing won that contract.

Contracts and Key Events click for video

The initial contract involves 126 jets, but the overall program involves 210-220 QF-16 aircraft. Most will be taken from dry storage at the AMARG “boneyard,” at Davis Monthan AFB, AZ. Note that QF-16s aren’t fully autonomous, as they have pilots who sit on the ground and direct the planes via remote control. Tying the F-16’s systems into the new set of remote control systems was apparently quite an involved and challenging project.

FY 2012 – 2016

1st unmanned flight
click for video

September 29/16: Initial operational capability has been given by the USAF Air Combat Command for the QF-16 full-scale aerial target (FSAT). All 15 QF-16s located at the 82nd Aerial Target Squadron at Tyndall Air Force Base, Florida have been approved for target operations. Due to replace the legacy QF-4 aerial target, the QF-16 will introduce fourth-generation fighter capabilities in the aerial target mission, maintaining all inherent capabilities of the baseline F-16 Fighting Falcon, including supersonic flight and 9 G maneuverability.

May 20/14: Lot 2. Boeing in St. Louis, MO receives a $27.7 million contract modification for QF-16 Production Lot 2: 23 QF-16 conversions, with 4-year warranties for the onboard systems that turn them into remote control aircraft. This brings the contract’s total value so far to $158.7 million.

All funds are committed immediately, using FY 2013 procurement & 2014 R&D budgets. Work will be performed in St. Louis, MO, and will be complete by May 20/16 as the warranties expire. The USAF Life Cycle Management Center/EBYK (Aerial Targets) at Eglin AFB, FL manages the contract (FA8678-10-C-0100, PO 0058).

Lot 2

May 7/14: QF-16 UCAVs? With the USAF looking for just 210 QF-16s at most, and hundreds of F-16s in storage and headed for storage, Boeing is thinking bigger. Boeing’s QF-16 chief engineer Paul Cejas told IHS Jane’s that they’re thinking of using them as Unmanned Combat Air Vehicles, for close-air support and deep strikes against the most dangerous targets.

Step 1 is giving the QF-16s control options that don’t require line of sight, which is currently the case at Tyndall AFB, FL and White Sands Missile Range, NM. Step 2 would involve thinking through mission performance very carefully. Contested airspace is the main reason to use a QF-16 over an MQ-9 Reaper, but UAV pilots have very limited fields of view. That’s a problem for contested strike missions, let alone aerial dogfights. Now add the inevitable delays of latency to magnify the problem, unless the QF-16s are given another level of autonomy for evasion and flight. Range will be limited without aerial refueling, though parallel R&D programs may be about to solve that issue.

On balance, this may be one of those ideas that needs to wait for another iteration or 2 of technology before it really makes sense. Sources: IHS Jane’s 360, “Boeing touts operational QF-16 UAV'”.

September 2013: 1st unmanned flight. The first unmanned F-16 flight takes place at Tyndall AFB, FL. The jet reaches Mach 1.47 and 40,000 feet, performing barrel rolls and other maneuvers before returning with a safe landing.

Boeing has modified 6 QF-16s so far, and this initial test plane had last flown 15 years ago. Conversions will continue, while the next step for converted planes is live fire testing at Holloman AFB, NM. Sources: Boeing feature, “On target: QF-16 flies with an empty cockpit”.

1st unmanned flight

Dec 11/12: More EMD. Boeing in St. Louis, MO receives a $17 million contract modification for Engineering, Manufacturing and Development Phase Option 1. Work will be performed in St. Louis, MO, and is expected to be complete by March 2014. The AFLCMC/EBYK at Eglin AFB, FL manages the contract (FA8678-10-C-0100, PO 0028).

Nov 19/12: Testing. The 1st QF-16 drone arrives for developmental testing at Tyndall AFB, FL. Boeing Global Services and Support will conduct testing on the QF-16, which will undergo approximately 6 months of testing to validate their capabilities and ensure compatibility with the Gulf Range Drone Control System. Next, the aircraft will deploy to Holloman AFB, NM, for 4 more months of integrated testing.

When all test milestones are complete, the aircraft will return permanently to the 53rd WEG, complete a transition period, and achieve initial operational capability at Tyndall AFB. The first production QF-16 is scheduled to be delivered in 2014. USAF | Boeing.

May 4/12: 1st flight. Boeing and the U.S. Air Force complete the 1st QF-16 Full Scale Aerial Target flight at Cecil Field in Jacksonville, FL. For safety reasons, initial flights take place with a pilot on board. Boeing.

1st flight

FY 2010 – 2011

1st “voluntold” F-16
(click to view full)

July 7/10: Sub-contractors. Herley Industries’ subsidiary Micro Systems, Inc. in Fort Walton Beach, FL announces a development and production contract from Boeing for a QF-16 command and control transponder and a ground systems module. This development contract has an initial award of $2.3 million, and a total potential value of $19 million.

April 22/10: F-16 arrives. The first retired F-16 Falcon arrives at Boeing’s Cecil Field facility near Jacksonville, FL to begin conversion into a QF-16 aerial drone. The team will receive 6 F-16s during the program’s development phase, which will be modified and serve as prototypes for engineering tests and evaluation prior to low-rate initial production. Boeing.

March 8/10: QF-16 EMD. Boeing in St. Louis, MO announces a $69.7 million contract to develop and provide QF-16 “optionally manned” full scale aerial targets. Phase I covers engineering, manufacturing and development. Under the terms of the remainder of the contract, expected to be awarded in coming years, up to 126 QF-16 drones will deliver beginning in 2014, and 2014 is also the expected year for full rate production. The USAF expects to buy 220 QF-16s over time.

QF-16 design and development will take place in St. Louis. MO. Ground and flight testing and production will be completed at the Boeing facility in Cecil Field, FL, near Jacksonville. The Boeing-led QF-16 team also includes BAE Systems in Johnson City, NY, who led the QF-4 program. For the Boeing QF-16 contract, $950,000 is committed at the outset by the 691st Armament Systems Squadron at Eglin Air Force Base, FL (FA8678-10-C-0100). See also Boeing release.

Development contract

QF-4: fading away
(click to view full)

October 2009: QF-4s. In a presentation to the NDIA, Deputy Director of the 691st Armament Systems Squadron Mike VandenBoom sketches out the remaining QF-4 program. As of October 2009, they had completed Lot 13 production and begun Lot 14 deliveries, with 256 QF-4s delivered to date. Production is now down to using RF-4C reconnaissance aircraft instead of F-4E fighters, which will provide another 3 years of full production capability until Lot 17, the final production lot.

QF-4 Lots 15-17 will comprise 36 aircraft, with deliveries lasting until July 2013, which is expected to provide enough inventory through FY 2015. Successor “QF-16” aircraft will need to pick up the job from there.

Additional Readings

• Boeing Feature (Sept 23/13) – On target: QF-16 flies with an empty cockpit

• Boeing feature (Sept 4/12) – QF-16 Takes Flight

• USAF, via WayBack (October 2009) – Air Force Aerial Targets: October 2009 NDIA Brief [PDF]

Americas

• The F-35 could be getting new engines by the mid-2020s, with the potential for either an upgraded version of the Pratt & Whitney F135 design currently in use or a new engine from a competitor. Lt. Gen. Chris Bogdan, head of the Joint Program Office, made the announcement at last week’s Air Force Association conference. The USAF is currently in the early stages of funding their Adaptive Engine Transition Program (AETP) competition, with both P&W and General Electric Aviation securing contracts worth $1.01 billion to research if its possible to “demonstrate 25 percent improved fuel efficiency, 10 percent increased thrust, and significantly improved thermal management.”

• E-8C JSTARS aircraft grounded due to maintenance concerns are back flying again. Issues surrounding a radar mishap had resulted in four E-8Cs undergoing a USAF launched independent investigation following their delivery from depot maintenance at Northrop Grumman’s facility in Lake Charles, Louisiana. One aircraft experienced water damage to the Northrop APY-7 radar after the glassfibre canoe did not properly drain water.

• If you missed/managed to avoid what was a rather strange first US presidential debate, candidates Donald Trump and Hillary Clinton sparred on national security, ISIS, supporting Gulf and Asian allies (should they pay more?), cyber warfare, and aging military hardware. Choice highlights include Trump asserting that Clinton’s website is handing out tips to ISIS, that our troops are utilizing “B-52s old enough that your father or grandfather could be flying them,” and suggesting that China should go into North Korea.

Middle East &North Africa

• US officials have hinted that Gulf allies may arm Syrian anti-government militants with more shoulder-fired weapons following the collapse of the latest ceasefire and reports of bunker busting bombs being used by Russian warplanes on civilian and aid targets. Until now, Washington has so far prevented significant numbers of man-portable air defense systems (MANPADS) being supplied to the militants, instead favoring training and sending infantry weapons. The supply of MANPADS could help negate Russian and Syrian air power in cities such as Aleppo, as seen by their use by the Mujahideen against the Soviet Union in Afghanistan.

Africa

• Kenya and Jordan are to cooperate on counter-terrorism training with the Gulf state to help train Kenyan Air Force pilots. The announcement was made during King Abdallah II Ibn Hussein’s one-day visit to the Kenyan capital Nairobi, which focused largely on security and CT issues. Alongside the meetings, King Abdullah and Kenyan president Uhuru Kenyatta, both dressed in military fatigues, watched joint military exercises, with the president tweeting “Our cooperation is underpinned by our common interests. Together we must fight against emerging security threats.”

Europe

• Hypersonic weapons being researched by Russia’s Tactical Missiles Corp. should be capable of hitting targets by the early 2020s. The group is collaborating with scientists from the Russian Academy of Sciences and the Advanced Research Foundation under the Military-Industrial Commission and hope to produce a missile capable of reaching Mach 5 (3,800 mph). Moscow’s hypersonic development lags behind that of the US, who are currently looking to develop and demonstrate critical technologies to enable an effective and affordable air-launched hypersonic cruise missile.

• The UK government is to prosecute ejection seat maker Martin Baker in relation to the death of a Red Arrows display team pilot in 2011. The pilot, Flt Lt Sean Cunningham, died after the MK10 ejector seat parachute failed to deploy. While the company has failed to comment on the legal action, it represents a second setback for the company following safety issues with the US-16E ejection seat it is supplying for the entire F-35 program. It was suggested during the summer that the USAF consider an alternative ejection seat supplier for the next-generation fighter.

Asia Pacific

• Following a series of protests, head shavings, and eggings, South Korean and US military officials are to announce an alternative site for the controversial deployment of the THAAD anti-missile system this week. Originally destined for the southeastern county of Seongju, three alternative sites neighboring Seongju include a golf course owned by chaebol (conglomerate) Lotte Group in Chojeon-myeon, Mt. Yeomsok in Geumsu-myeon and Mt. Kkachi in Suryun-myeon. The decision to allow THAAD on the Korean peninsula comes amid North Korea’s steaming ahead with ballistic missile and nuclear tests over the last year.

Today’s Video

Pakistan Air Force jets landing and taking off from highways near Lahore:

Americas

• The US Defense Advanced Research Projects Agency (DARPA) has awarded a $171 million contract to Lockheed Martin as part of its Hypersonic Air-Breathing Weapon Concept (HABWC) program. A joint effort between DARPA and the USAF, the program looks to develop and demonstrate critical technologies to enable an effective and affordable air-launched hypersonic cruise missile. Lockheed will undergo a research project for the program and follows a recent $147 million award for DARPA’s Boost Glide program.

• Northrop Grumman’s MQ-4C Triton has been cleared for low-rate initial production, the first piece of the production and deployment phase of the UAV. 68 Tritons are expected to be fielded, with the first to be deployed in 2017. The Triton will operate as a forward-deployed, land-based, autonomously operated system that provides persistent ISR within a range of 2,000 nautical miles using a multi-sensor mission payload including maritime radar, Electro-Optical/Infrared (EO/IR), Electronic Support Measures (ESM), Automatic Identification System (AIS), and basic communications relay.

• Contracts worth $43 million each have been doled out to Lockheed Martin and Boeing in order “to conduct risk reduction activities in support of the MQ-25 unmanned carrier aviation air system.” Both companies are expected to complete their work on the UAV by October 2017. Now known as the Stingray program, the UAV integrates the first operational, carrier-based, catapult-launched drone and will provide long-endurance ISR and organic refueling capabilities for the carrier air wing.

Middle East &North Africa

• The UK government has blocked EU attempts to establish an independent international inquiry into the ongoing war in Yemen, sparking accusations that London is putting its multi-billion arms deals with Saudi Arabia first. A proposal by the Netherlands was submitted to the UN last Friday which, if successful, would have seen the UN Human Rights Council (HRC) in Geneva investigate alleged war crimes committed by the Saudi-led coalition and opposing Houthi militants. Brexiter and UK Foreign secretary Boris Johnson last week rejected the need for such an inquiry, arguing that the UK was “using a very, very wide variety of information sources about what is happening to acquaint ourselves with the details” about Yemen.

• Oskosh will provide 1,543 medium tactical vehicles in a foreign military sales contract awarded by the US Army. Valued at $378 million, the vehicles will be delivered to the governments of Somalia, Cameroon, and Iraq. The deal also covers the provision of three 78-gallon armor B-Kit corrosion prevention compound for vehicles to ship outside of the continental United States.

Europe

• Heckler & Koch’s 5.56mm 416 F assault rifle has won a Europe-wide competition run by France as part of its Future Individual Weapon program. The rifle will replace the domestically-produced FAMAS rifle, with deliveries to commence next year and continue over a ten-year period. Chambered for the NATO caliber 5.56mm cartridge, the rifle has the ability to fire rifle grenades and can be fitted with a 40mm grenade launcher to increase its firepower.

Asia Pacific

• Nine types of missiles have been tested by the South Korean military this year, however, only five of the missiles actually hit their targets, indicating a drop in accuracy over previous years. As a result, opposition lawmakers have used the accuracy drop to hammer the government over concerns with the proficiency of the country’s aged computerized command and control system as well as guided missile systems. Some of the missiles that failed to make the grade include the indigenous SSM-700K anti-ship missile and Raytheon’s RIM-66 anti-air missile.

• An upgraded Mirage 2000 fighter operated by the Indian Air Force has successfully test-fired the Mica air-to-air missile. The MBDA made missile system was recently acquired from France and follows a $2.4 billion deal to upgrade the IAF’s fleet of 51 Mirage fighters. Once completed all of the fighters will be of the Mirage 2000-5 Mark 2 variant, which boasts new radar systems, a new weapon suite, missiles, electronic warfare system and modern electronic warfare.

Today’s Video

Israeli and Hellenic Air Force helicopters train in Greece: