The Department of Defense has been slowing down its contract obligations in both the domestic and foreign arenas, underscoring the U.S. shift away from combat operations, according to figures released in a recent Congressional Research Service (CRS) report. The report highlights the overall increase in military spending since the terrorist attacks of 2001, but notes the slowdown in the past half-decade.
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NEW DELHI — Delivery of Sukhoi Su-30MKI fighters from state-owned licensed manufacturer Hindustan Aeronautics Ltd. (HAL) to the Indian air force (IAF) is likely to be delayed due to development issues. HAL is currently undertaking the production of 222 Su-30 aircraft. HAL was supposed to start delivery of the all-weather air-dominance fighters to the country’s defense forces by 2015. But now this may not happen “as per schedule,” according to India’s junior defense minister, Jitendra Singh.
LAS VEGAS — MD Helicopters is working on modernizing its MD902 twin-engine light helicopter and expanding its military customer base. The Mesa, Ariz.-based company delivered 24 helicopters in 2012 and is currently flight testing its first new product developed since the company was taken over by billionaire industrialist Lynn Tilton in 2005. Speaking to journalists at the Heli-Expo 2013 here, Tilton said the company was now emerging from difficult times but the manufacturer was more “secure and stronger for it.”
Looking beyond sequestration and continuing resolutions (CRs), the U.S. Navy still apparently remains committed to most major shipbuilding programs, says Michael Petters, CEO of Huntington Ingalls Industries (HII), the nation’s largest military shipbuilder.
BEIJING — Growth in Chinese defense spending appears to be moderating in line with the national economy, despite the 10.7% nominal rise that was announced this week and widely reported in international news reports as underlining Beijing’s expanding military capabilities.
LAS VEGAS — BAE Systems is planning to conduct firings of its Advanced Precision Kill Weapon System (APKWS) laser-guided rockets from U.S. Army Apache and Kiowa Warrior helicopters later this year. The U.S. Army has a notional requirement for a low-cost, laser-guided rocket system, and BAE Systems is confident that the U.S. Marine Corps’ recent success with the weapon in Afghanistan might pique the Army’s interest. Furthermore, the company believes an Army order might also boost international opportunities through the Foreign Military Sales system.
As the Littoral Combat Ship (LCS-1) USS Freedom makes its way across the Pacific for its first Asian deployment in Singapore, the U.S. Navy is further anchoring its LCS program by picking up options worth about $1.4 billion to buy four more ships. The contract options fund construction of four ships in fiscal 2013 in the dual 20-ship block-buy award made to a shipbuilder team lead by Austal USA and General Dynamics, and another team led by Lockheed Martin, in December 2010.
The U.S. Air Force is considering seeking more flexibility in payment schedules on future fixed-price development contracts, to mitigate the growing risk that budget uncertainty could force the government to default on such deals and lose their favorable terms.
INDIAN PARTNERSHIPS: Indian Foreign Secretary Ranjan Mathai, speaking in Washington last month, has called for joint design and coproduction of weapons and defense capabilities with the U.S. During an event at the Carnegie Endowment for International Peace, Mathai told an audience that the two countries should enter into joint defense projects — a sign that New Delhi is increasingly interested in more than just utilizing traditional “offsets,” i.e., local spending by Western defense companies, to build up its own industry.
NEW DELHI — India says it will go ahead with its program to buy 197 Light Utility Helicopters for its defense forces, contrary to speculation that the AgustaWestland bribery scandal had forced the government to put the much-awaited deal on hold. “The proposal for acquisition of 197 Light Utility Helicopters is due for consideration of the Defense Acquisition Council [DAC]. The procurement procedure has been conducted in accordance with the Defense Procurement Procedure,” Defense Minister A.K. Antony says.
LAS VEGAS — Pratt & Whitney says oil starvation tests have been conducted on the F135 to clear the engine in advance for the extreme phases of ongoing high angle-of-attack flight tests of the F-35 Joint Strike Fighter.
Even without a fiscal 2014 budget, combatant commanders are beginning to make their current and future needs known on Capitol Hill. The four-star general in charge of the nation’s nuclear and strategic weapons indicates that even in an era of constrained budgets, he has a list of items that he will protect. The top two: national command and control and replacement of Ohio-class ballistic missile submarines. And not too far below that, he advocates for the Air Force’s refueling tanker program.
LAS VEGAS — Bell is looking for new partners in its push to offer tiltrotor technology to meet the U.S. Army’s Joint Multi-Role and Future Vertical Lift requirements. Despite having partnered with Boeing for the last three decades on the development of the V-22 Osprey, the two have broken ranks and Boeing is now partnering with Sikorsky to develop an aircraft using Sikorsky’s X2 coaxial hybrid technology.
DEFENSE DECLINE: Consulting company Research and Markets says the U.S. defense budget will register a minus 0.12% compound annual growth rate through fiscal 2017, dipping to $611 billion, including so-called contingency funding for wars, compared with $645.7 billion total for 2012. Furthermore, defense expenditures as a percentage of GDP are also estimated to decline, from an average of 4.6% now to 3.4% over the forecast period.
The Pentagon’s top procurement official is considering a strategy of funding research and development projects despite ongoing budget pressure, a slight shift from his fervent push to only proceed with well understood, affordable programs.
A “radical” shift in the F-35 Joint Program Office’s (JPO) approach toward addressing systems engineering and durability questions is already showing results for the program, says Lt. Gen. Christopher Bogdan, program executive officer (PEO).
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LAS VEGAS — AgustaWestland says it has opened its books and is providing investigators with “full transparency” as it deals with the aftermath of the Indian helicopter corruption scandal. Newly appointed CEO Daniele Romiti — who had been in the job just five days — told journalists on the eve of Heli-Expo 2013 here that the company is complying with both Indian and Italian investigators looking into alleged corruption surrounding the sale of 12 AW101 helicopters for use in the VIP role by the Indian air force in 2010.
