Aerospace Daily & Defense Report

Staff
McDonnell Douglas Corp., a wholly-owned subsidiary of the Boeing Co., Long Beach, Calif., is being awarded an indefinite delivery/indefinite quantity contract for $1,300,000,000. This contract is a follow-on contract to the PE/PI contract awarded in January, 2001. The contract is for continued efforts associated with the analysis, study, plan, design, development and qualification/test and kit prototype of enhancements and improvements to the C-17 weapon system. This is an indefinite delivery/indefinite quantity contract with a five-year ordering period.

Staff
OUT OF TOUCH: Controllers at the Korea Aerospace Research Institute (KARI) have lost touch with the Arirang 1 Earth-observation spacecraft, apparently as a result of the spacecraft's failure to maintain a lock on the sun for power generation. "Our efforts to restore communication with the Arirang 1 satellite have been unsuccessful," says a KARI official, according to press reports from Seoul. Launched in 1999, the spacecraft carries a camera with a resolution of 6.6 meters. Arirang 2, launched in 2006, continues to function with its 1-meter-resolution camera.

Staff
TESTING SCOUT: Northrop Grumman has conducted its first demonstration in a new phase of testing for the MQ-8B Fire Scout unmanned rotorcraft in preparation for flight trials of the system next year. During a Dec. 15 test, the Fire Scout flew with a test and training control segment that contains the same console and equipment that is slated for use on the Littoral Combat Ship (LCS). Though the LCS is expected to provide the first deck for the Fire Scout, the Navy is exploring options for using other host ships because of continued delays in the LCS production program.

Staff
The Defense Department plans to spend about $12 million for vehicles such as Future Combat Systems platforms, tactical trucks, Humvees, Expeditionary Fighting Vehicles, Bradley sustainment, Strykers and Abrams modifications this fiscal year, a consultancy says. The trend reflects the Pentagon's return to "old-fashioned soldiering and foot patrolling" to combat terrorism and insurgencies.

Bettina Haymann Chavanne
The Congressional Budget Office (CBO) has concluded that carrying out the Pentagon's Future Years Defense Program (FYDP) will result in increased growth in both planned and unforeseen spending. In a December 2007 long-term projection regarding DOD's budget, CBO predicts that between 2014 and 2025 defense resources will total about $521 billion annually, 8 percent more than requested by the Bush administration for 2008 (See charts pp. 5-7).

Neelam Mathews
NEW DELHI - Northrop Grumman's Ship Systems division is planning to pursue opportunities in India and arrangements should be announced this year, Aerospace Daily has learned. The Ship Systems division will follow the lead of Northrop's Integrated Defense Systems and Electronics divisions in tapping opportunities in India. The Indian navy plans to induct 120 warships and 12 submarines over the next decade to protect its maritime interests and expand its influence in the Indian Ocean region.

Michael Fabey
The U.S. Air Force and Navy blend air operations better than before, but the services still can better integrate their air fleets, a recent Rand report says. "By the candid admission of key leaders in both services, this process of integration in air warfare still has further headway to make before it will have realized its fullest potential," says the report, "Combat Pair: The Evolution of Air Force-Navy Integration in Strike Warfare," released at the end of 2007.

Staff
BOEING BIDS: Boeing submitted its revised proposal for the U.S. Air Force Combat, Search and Rescue (CSAR-X) helicopter. Originally awarded to a derivative of Boeing's Chinook HH-47 helicopter in November 2006, the $10 billion - $15 billion program was re-opened for bidding following two successful protests by losing bidders Lockheed Martin and Sikorsky. Both have raised issues about Chinook deployability (DAILY, Nov. 20, 2007).

Bettina Haymann Chavanne
The DOD Inspector General (IG) has audited the Defense Security Service (DSS) to determine whether the service incorrectly used appropriated funds. In a Jan. 3 report, the IG said that although DSS "has taken steps to improve its financial management functions, [it has] experienced difficulties," particularly in the years from fiscal 2002 and 2007. As a result, the IG requests that the DSS "initiate a preliminary review to determine whether" it misused appropriated funds.

Staff
IRANIAN UPGRADE: Iran says Russia is going to supply it with S-300 air defense missiles, although Russia's technology export agency is denying any such sale, or even deliberations to sell. The missile, designated SA-10 and SA-20 by NATO depending on the variant, is considered the most potent of currently fielded, high-altitude surface-to-air missiles (SAMs). Ranges of some spinoff designs extend 250 miles or more. Sale of the expensive missile has been rumored for years.

Michael Fabey
The recent groundings of the U.S. Air Force's stalwart F-15 Eagle fleet, coupled with December's declaration of the F-22 Raptors as being fully operational, is leading defense analysts to speculate that the service may get the additional F-22s it's been pining for. The Air Force has been forced to ground F-15s because of structural concerns that could affect the whole fleet, the analysts say. "This is a crisis," said one familiar with the F-15 (DAILY, Nov. 7, 2007).

Staff
CONGRESSIONAL CHANGES: House Foreign Affairs Chairman Tom Lantos (D-Calif.) says he won't seek re-election in November. Lantos, 79, says he has cancer of the esophagus. His panel oversees enforcement of the International Trade in Arms Regulations (ITAR). The announcement brings to four the number of House Democrats who say they won't seek another term. Eighteen Republicans, including Armed Services' Reps. Duncan Hunter (Calif.) and Jim Saxton (N.J.), have announced they are leaving the House this year. The latest is Rep.

Staff
OUT-PERFORMED: Civilian and defense acquisition regulators have agreed on a new rule that changes the regulations related to performance-based payments, according to the Federal Register. The move, effective Jan. 25, amends the Federal Acquisition Regulation to increase the use of performance-based payments as the method of contract financing on federal contracts, as well as trying to improve their efficiency. The changes originated from recommendations submitted by the Defense Department's Performance-Based Payments Working Group in their March 8, 2005, report.

Staff
AMRAAM SALE: Under a deal recently approved by the Pentagon, the United Arab Emirates will receive a suite of weapons along with the F-16 Block 60 it is purchasing. The weapons include up to 224 of the newest AIM 120C-7 Advanced Medium-Range Air-to-Air Missiles (AMRAAMs) and a variety of general purpose and guided air-to-ground weapons, including laser-guided variants. The total value of the weapons package is about $326 million.

Staff
Cluster bomb critics in Washington are claiming temporary victory given recently enacted fiscal 2008 omnibus appropriations that prohibit issuing arms export licenses or providing military aid for such munitions through September - unless the weapons have a 99 percent-or-higher reliability rate. The law, passed last month, further requires an importer to sign a statement before export can take place, agreeing that they will not use cluster munitions in civilian areas, according to the Friends Committee on National Legislation.

Staff
HARBORING DOUBTS: Russian Space Agency (RSA) head Anatoly Perminov says he harbors some doubts about Europe's willingness to cooperate on Russia's Crew Space Transportation System (CSTS) and its ability to finance a role in the system. "Most likely it would be necessary to develop a special agreement in this matter," Perminov told reporters late last month following an early December meeting between RSA and European Space Agency (ESA) specialists. He did not elaborate.

Staff
NASA's partial release of data from a controversial airline safety survey still has left some questions unanswered among observers in Congress and industry. Keeping a promise Administrator Michael Griffin made to lawmakers in October, NASA on the last day of 2007 released a redacted version of data from the $11 million National Aviation Operations Monitoring Service (NAOMS) pilot survey, although it contained little analysis or illumination of safety trends.

John M. Doyle
The Department of Homeland Security (DHS) has formally signed a $29 million contract with BAE Systems and partner American Airlines to test an infrared missile defense system on scheduled passenger flights, but a leading industry group thinks it's a bad idea.

Neelam Mathews
NEW DELHI - Indian government-owned defense manufacturer Hindustan Aeronautics Ltd (HAL) is eyeing a joint venture with BAE Systems for manufacture and export of Mk132 Hawk advanced jet trainers. The agreement could include maintenance and overhaul of the Hawks. BAE Systems has started delivery of the first batch of the 24 Mk132s in flyaway condition to India, with the remaining 42 on order to be manufactured under a technology transfer license at HAL's facility in Bangalore.

Staff
SIGNATURE STUDY: Federal agencies faced with implementing laws signed by President Bush, but to which he has voiced disagreement in so-called "signing statements," apparently are not having much difficulty carrying out the contended provisions, congressional auditors say.