Rising federal deficits don't necessarily inhibit the growth of defense spending, according to a leading Wall Street analyst. Instead, rising defense budgets appear to drive the growth of deficits, at least in the short term, according to Joseph Nadol, an aerospace and defense analyst and vice president with JP Morgan. He spoke at the Strategic Research Institute's 2003 Defense & Aerospace Investor, Supplier and Customer Conference-East, sponsored by the investment banking firms of Houlihan Lokey Howard & Zukin and Philpott Ball & Werner.
Recent remarks from the heads of the Boeing Co. and BAE Systems about a possible merger probably are designed to generate feedback from aerospace and defense industry observers and regulators, according to Jon Kutler of Quarterdeck Investment Partners. "I don't interpret any cross-border deals, including the one between Boeing and BAE, as being imminent," said Kutler, the chairman and CEO of the Los Angeles-based investment banking services company. "I just see this as part of the groundwork being laid for deals of that sort."
DISPLAY WORK: L-3 Communications will provide cockpit displays for the F-15K Eagle under a contract from the Boeing Co. worth more than $7 million, the company said March 11. The company will design, qualify and build four-inch by four-inch Flat Panel Up-Front Control displays for the F-15K, which Boeing will supply to South Korea (DAILY, April 22, 2002).
NEW DELHI - Pakistan has inducted the medium-range Hatf-IV (Shaheen-1) ballistic missile into its army, according to sources here. Pakistan says it has developed the 750-kilometer (466-mile) Shaheen-1 indigenously, although sources in the Indian Ministry of Defence say the technology was acquired from China or North Korea.
An acquisition plan to install dark fiber cables at military sites across the world may involve up to nine contracts awarded by the end of the year, according to new procurement documents. A Request for Proposal (RFP) launching the first phase of the $862 million Global Information Grid Bandwidth Expansion (GIGBE) program was posted late on March 7. The Defense Information Systems Agency (DISA) is managing the project.
Lockheed Martin expects to build more than 500 Sniper XR targeting pods for the Air Force, even though the service recently awarded Northrop Grumman a contract to supply its Litening ER pod for the F-15E Strike Eagle, a Lockheed Martin official said. The Sniper was chosen over the Litening, and Raytheon's Terminator, in August 2001 as the winner of the Air Force's Advanced Targeting Pod (ATP) competition. Lockheed Martin said at the time that it had received a seven-year contract to build up to 522 pods for as much as $843 million.
The Bush Administration's fiscal 2004 budget request for the National Polar-orbiting Operational Environmental Satellite System (NPOESS) "may not be enough" to meet all of the program's needs, according to the House Science Committee. In its "Views and Estimates" report on the Administration's FY '04 budget for science-related programs, the committee said the $544 million request for NPOESS is $50 million short of what the National Oceanic and Atmospheric Administration (NOAA) has called for in planning documents.
The leaders of the panel that reviewed the Air Force's $17 billion plan to lease 100 Boeing 767-200 tankers briefed Defense Secretary Donald Rumsfeld on the plan March 10. E.C. "Pete" Aldridge, undersecretary of defense for acquisition technology, and logistics, and Comptroller Dov Zakheim conducted the briefing.
HELO HEARING: The House Armed Services Committee's tactical air and land forces subcommittee will receive testimony on the DOD's fiscal year 2004 budget request from two panels of rotorcraft experts on March 12. Witnesses will include Rear Adm. Tom Kilcline, Sikorsky president Dean Borgman, and Bell Helicopter Textron chairman John Murphy.
The European Aeronautic Defence and Space Co. posted a net loss of 299 million euros ($330 million) for 2002 due to slower commercial aircraft orders and depreciating assets in its space division. The 299 million euro loss for 2002 compares with a 1.37 billion euro ($1.51 billion) net gain for 2001.
The Army program to acquire a surfaced-launched version of the Advanced Medium Range Air-to-Air Missile (AMRAAM) is expected to take a significant step forward in April with the release of a request for proposals to develop and produce the air defense system. The selection of a prime contractor for SLAMRAAM is slated for the first quarter of fiscal 2004, and the Army hopes to begin fielding the system in 2007.
As the United States prepares for a possible war with Iraq, the Air Force has a large inventory of bombs and other air-deliverable munitions, according to a service official. "We've been building at high rates for several years now, so we're actually way beyond [the] expected inventories that we thought we would have at this time," said Dr. Steve Butler, director of engineering at the Air Force Air Materiel Command's Air Armament Center at Eglin AFB, Fla.
The last Atlas IIAS booster was scheduled to arrive at Vandenberg AFB., Calif., on March 11 on a C-5 Galaxy airlift aircraft, the Air Force said. The booster will be accompanied by the upper stage Centaur, which places the spacecraft into final orbit. The 2nd Space Launch Squadron has been launching Lockheed Martin's Atlas vehicle since 1959 and will be complete the program with the final launch scheduled later this year.
The Boeing Delta IV launch of the first payload for the Air Force's Evolved Expendable Launch Vehicle (EELV) program was rescheduled for March 10, after two consecutive scrubbed launch attempts over the weekend at Cape Canaveral, Fla. The Delta IV medium launch vehicle will deploy the Defense Satellite Communications System (DSCS) spacecraft, DSCS III A3, to a geosynchronous transfer orbit.
CORRECTIONS: Due to an editing error, a word was omitted from the first sentence in the V-22 article in the Mar. 10 issue of the Daily. The complete sentence is: "The V-22 program has put a critical series of flight tests on hold for replacement of German-made hydraulic tubes that program officials say are defective."
March 5, 2003 Army DynCorp International L.L.C., Fort Worth, Texas, was awarded a $26,503,000 increment as part of a $280,191,008 firm-fixed-price contract for C12 and UC35 aircraft life cycle support on Feb. 27, 2003. Work will be performed in Fort Worth, Texas, and is completed by Jan. 31, 2004. Contract funds will not expire at the end of the current fiscal year. This was a sole-source contract initiated on March 8, 2000. The U.S. Army Aviation and Missile Command, Redstone Arsenal, Ala., is the contracting activity (DAAH23-00-C-0226).
After retreating from its decision to terminate its rotorcraft work altogether, NASA is working out details with the Army of what role the agency will play in rotorcraft research and development (R&D).
LONDON - The Airborne Stand-Off Radar (ASTOR) high-altitude battlefield surveillance program has passed a significant milestone with the formal opening of Raytheon Systems Ltd.'s new 3.5 million pound ($5.6 million) production and assembly facility at Broughton, in North Wales.
The V-22 program has put a critical series of flight tests on hold replacement of German-made hydraulic tubes that program officials say are defective. The move grounds the program's five operating aircraft while two new suppliers are certified and 20 tubes in each aircraft are replaced. The final series of high-rate-of-descent tests, which could determine whether the program survives, should resume after March 20, officials said.
ELASTICITY: A recent Futron Corporation study of the world launch market (DAILY, March 6) has found dramatic variation across market sectors when it comes to price elasticity of demand. "Most of today's markets, both commercial and governmental, are virtually unaffected by even massive reductions in launch prices," according to the report. In the case of government launches, launch demand is "virtually insensitive to launch price," it says.
Computer Sciences Corporation, which announced March 7 that its acquisition of DynCorp is complete, says the purchase strengthens CSC's position in the federal market, including the defense and homeland security segments.
QUESTIONING: Columbia Accident Investigation Board (CAIB) member Roger Tetrault thinks certain areas of NASA's human space flight program may not have the appropriate "questioning attitude" with regard to safety. The former president of Electric Boat and former chairman of McDermott International, Inc., Tetrault comes from a nuclear Navy background. In the nuclear Navy, "they've had to adopt certain attitudes and qualities over the years, particularly a questioning attitude about, 'Prove to me that it's right,'" Tetrault says. "I know ...
