BATTLESPACE UPDATE Vol.20 ISSUE 11

12 March 2018

NEWS

NEWS IN BRIEF – EUROPE

Iraq and Syria: OP SHADER

Saudi: Crown Prince’s Visit

Nerve Agent: Salisbury Incident

Cyber: Cyber Defence School

Undersea Cables: Resilience

RFA Lyme Bay: Back in Fleet

Bridging: Project TYRO

Minehunters: Two Decommissioned

Joint Exercises: UK Involvement

Asia-Pacific: Activities

UK Notice to Exporters

GKN battle reaches turning point

GKN- Melrose, all to play for

NATO urges security in U-space

RN submarine arrives in Arctic

To Europe: Grow Up

F-35 in peril in Italy?

NATO Seeks Russian Contacts

Savings plans cause confusion

Exercise TOXIC DAGGER

NEWS IN BRIEF – USA

Boeing’s acquisition firepower

Tariffs Put Jobs at Risk?

New F-35 modernization plan

Deterrence defense budget

Investigation Into BAE Saudi Deal

Don’t Buy Another Money Pit, F-35

Flexibility On O&M Funds

B-21 on track

Boeing air tanker delayed

Stealth defects on F-35

China Loves DoD Acquisition

Requirements Changes Called For

USMC budget boost

USN to scrap fighter jets

Speedier Acquisition Needed

Importance of Nuclear Deterrence

Africom Continues Efforts

Lockheed CEO on steel tariff

NEWS IN BRIEF – REST OF THE WORLD

Indian Rafale deal Update

BMD Focal Point of Juniper Cobra

5th Gen Fighters Into Next Phases

Australia, Japanese partnerships

Request For Japanese equipment

Quebec UAV Cluster of Excellence

Trump agrees to meet Kim

U.S. wary of N. Korea weapons

McCain collision caused by turn

Germany boosts Afghan presence

Japan’s new advanced fighter

Palm oil curbs affect jet deal

Don’t Bank on the Bomb Report

Iran’s missile production up

Carl Vinson arrives in Vietnam

RoK exports through offsets

China’s hike in spending

China’s increased spending

Japan Backs Out of Fighter Plan

India, Vietnam to deepen ties

China announces 8% increase

Iran risks sanctions on missiles

Iran call to scrap nuclear arms

BUSINESS NEWS

Melrose Ups GKN Offer

EU approves bid for GKN

Embraer posts 82% drop

Australian industry targeted

Dassault 2017 profit doubles

Bioquell profits soar

Airbus sale of Plant Holdings

Bharat Dynamics IPO

Rolls-Royce profits up

Babcock International update

More funds spurn nuclear arms

Rolls-Royce update

GKN receives approaches

GKN has lost its way

LM reinvests tax savings

Thales exceeds targets

Sparton Terminates Merger

GKN pensions regulator approval

MPs call for UK to block Melrose

US halts Qualcomm takeover

Ultra Electronics Results

Ultra ends Sparton deal

MILITARY VEHICLE NEWS

Supashock offer to German Army

USDLA Enhances Industry Engagement

1st LAND 400s built in Europe

USMC vehicle design for $50,000?

More US vehicles in Europe

Barys 8×8 acceptance

Avenger UGV logs customers

Barys put through its paces

WFEL’s Aus Land 155 tranche

Bids for MPF programme

BAE proposal for MPF

NEW TECHNOLOGIES, NETWORKS AND COMMUNICATIONS

Internet of battlefield things

JEDI cloud contract

New Motorola Broadband Device

Chemring launches LORIS

Enterprise network update

Sonim and Softil LTE devices

Techstars Adelaide Programme

DST to develop 3D printing

ADS Security Innovation Award

USAF wants software security

DOD to share more spectrum

Harris selects Silvus radios

Spain pursues tactical comms

Thales delivers IMBITR

Battery tech revolution

SATELLITE SYSTEMS, SATCOM AND SPACE SYSTEMS UPDATE

New Viasat Service

Remote Sensing Services

Teledyne unveiling products

DIUx sat imagery datasets

JCSAT-17 production starts

Kleos Space $3.5m deal

Kratos ground comms solution

York Space Systems’ S-CLASS

European launches go ahead

RADAR, EO/IR, NIGHT VISION AND SURVEILLANCE UPDATE

C-UAV Systems Market

MoD tests Elbit’s Spectro

Google analyzes drone footage

Steiner Introduces New Scopes

AMISOM operating Aerostar UAVs

HMCS Windsor BQQ-10 sonar fit

IAF conducts Mobileye tests

JSTARS recap with somethings new

BAE selected for JORN upgrade

Dedrone’s RF-300 sensor

MISSILE, BALLISTICS AND SOLDIER SYSTEMS UPDATE

RoK asks Europe for missile tech

Rheinmetall push for US APS

Singapore Deploys ASTER-30

MBDA Deutschland and LM JV

SPICE 1000 operational

Iran’s Russian Missile Operational

Sea Venom for coastal defence role

Australia’s DST partnership

MDA Director Outlines Priorities

Buttstock variant for FN SCAR-SC

PAC-3 CRI interceptors trial

Estonia tenders for 155mm ammo

PN, PAF test-fire C-802

ST Kinetics multirotor UAV

US Army seeks NGSAR

Maritime Targeting for Tomahawk

Test for Patriot upgrades

Type 26 gets Lockheed launcher

DRDO finalises NAG ATGM

USMC deploys APKWS on F/A-18

UNMANNED SYSTEMS UPDATE

Anglo-French FCAS into doubt?

NATO UAS Sense and Avoid

Cross an Airplane With a Sub

Elistair Launches Tethered UAV

Turkey’s UAV tech ambitions

Boeing Chooses Queensland

Israel Building Drone Air Force

CASC readies improved CH-4 UAV

China Prepares Improved CH-4

CYBER, EW, CLOUD COMPUTING AND HOMELAND SECURITY UPDATE

Incident Reporting Key

US agencies need to join efforts

MilCloud 2.0 IL5 authorization

NGA reinvents acquisition efforts

Lockheed war-fighting platform

Recruit Young Cyber Warriors

AirShare’s Missile Countermeasure

LM Unveils Henosis Prototype

Deterring Russia’s cyber efforts

DoD backs off cloud contract

USMC interest in quantum

US Army EW-drone contract

Saab/PGZ Swedish SIGINT ship

INTERNATIONAL PROCUREMENT OPPORTUNITIES

EUROPE

Estonia tenders for 155mm ammo

German missile defense deal

Germany sizes up Euro-defense

Romanian corvette procurement

Bulgarian patrol boat buy

Spain pursues tactical comms

USA

F-35 Logistics System

Shrink Requirements Timeline

Sikorsky Triple Threat For FVL

USAF’s unfunded wish list?

REST OF THE WORLD

Aus JP 2060 Phase 4

Indonesia confirms A400Ms

NZ ANZAC frigate in Canada

India spurs defence investment

F-2 replacement options

China builds nuclear carriers

CONTRACT NEWS IN BRIEF

UNITED KINGDOM

SEA

BAE Astute contract

AIR

Boeing P-8A contracts

EUROPE

LAND

Aimpoint Berlin contract

DroneShield contract

RUAG NATO contract

Terma Danish CFB contract

SEA

Greece to acquire SOC

AIR

Boeing Norway P-8 contract

Thales rocket contracts

USA

LAND

McMurdo Group contract

SEA

Northrop Laser contract

AIR

Airbus UH-72A contract

BAE Systems APKWS contract

Lockheed missile contract

Raytheon DCGS contract

Raytheon FAA contract

Rockwell Helmet contract

TECHNOLOGY

Northrop U.S.Code contract

REST OF THE WORLD

LAND

BAE Jindalee contract

SEA

BAE Australian contract

JSC Russian Navy contract

Lockheed MMSC contract

Raytheon Japan CIWS contract

Saab Australian contract

STM Savunma Pakistan contract

AIR

AV Middle East contract

Orbital ATK Afghan contract

Raytheon Qatar FMS

UAE Sidewinder FMS

MANAGEMENT ON THE MOVE

TopEngineer.com Job Of the Week!

Procurement Buyer in Stevenage

LOCATIONS

LAND

Cities For US Futures Command

UK and Germany twinning bases

MARITIME

Saudi production of An-132D

AIR

Lynx Wildcat to Estonia

CH-53K King Stallion lift

First L-39NG flight in 2018

PLANT CLOSURES, JOB LOSSES AND STRIKES

Airbus to cut 3,700

Airbus meets staff members

MILITARY AND GOVERNMENT

PERSONNEL

Thad Cochran to resign

Nigeria graduates UAV pilots

U.S. APPOINTMENTS

Lisa Porter nominated

LG Timothy Ray nominated

BG W.J. Walker appointed

BG A.R. Dean II assignment

MG J.B. Clark nominated

MG D.G. Mitchell nominated

MG P.D. Sargent nominated

MG Frank W. Tate nominated

MG J.C. Thomson III nominated

BG Rodney D. Fogg nominated

BG G.N. Appenzeller nominated

BG Maria A. Biank nominated

BG Telita Crosland nominated

BG R. Scott Dingle nominated

BG Jeffrey W. Drushal nominated

BG Raul E. Escribano nominated

BG John R. Evans Jr. nominated

BG Anthony R. Hale nominated

BG Jeffrey J. Johnson nominated

BG Kenneth L. Kamper nominated

BG John S. Laskodi nominated

BG Dennis P. LeMaster nominated

BG D.M. McBride Jr. nominated

BG Joseph P. McGee nominated

BG Stephen L. Michael nominated

BG Thomas A. Pugh nominated

BG Michael E. Sloane nominated

BG Stephen G. Smith nominated

BG Ronald T. Stephens nominated

BG Michael J. Talley nominated

BG Erik H. Torring III nominated

BG Darren L. Werner nominated

REST OF THE WORLD APPOINTMENTS

Ryoko Azuma nominated

INDUSTRY

INDUSTRY TEAMINGS

Navantia selects Century

NATS and Altitude Angel JV

Cubic and Thales partner

Astrodyne, Mouser agreement

PERSONNEL

EUROPE APPOINTMENTS

Alcon appoints Bill Waddell

Clarion appoints Grant Burgham

IFS hired Darren Roos

U.S. APPOINTMENTS

Kellstrom appoints Andy Trosper

EXHIBITIONS AND CONFERENCES

IDEF 2019

Owning The Night 2018

PARLIAMENTARY QUESTIONS

Modernising Defence Programme

House of Commons and House of Lords Hansard Written Answers

Boeing

BMD Radar

Procurement

Bridges

Babcock: Stirling

Japan: Joint Exercises

FEATURES

GKN – Raised Melrose Bid Already Overtaken By Events

By Howard Wheeldon, FRAeS, Wheeldon Strategic Advisory Ltd.

The First Summit Between Donald Trump and Kim Jong-un

By Sue Mi Terry and Lisa Collins

What would a Clinton NPR have looked like?

By Alexandra Bell |Senior Policy Director at the Center for Arms Control & Non-Proliferation

Flawed Foundations: A Russian Critique of the US Nuclear Posture Review

By Andrey Baklitskiy |Consultant at the PIR Center

The 2018 US Nuclear Posture Review: a headache for Europe

By Lukasz Kulesa |Research Director

The U.S. Nuclear Posture Review and the future of nuclear order

By Oliver Meier |Deputy Head, International Security Division, German Institute for International and Security Affairs

Is There a Breakthrough on North Korea?

By Victor Cha and Lisa Collins

Rolls-Royce – Delivering On Promises as Efficiency Pace Increases

By Howard Wheeldon, FRAeS, Wheeldon Strategic Advisory Ltd.

Thales 2017 Full-Year results

Vital Wake Up Calls From VCDS, General Sir Gordon Messenger

By Howard Wheeldon, FRAeS, Wheeldon Strategic Advisory Ltd.

Russia’s New Nuclear Weapons: Whoever Dies with the Most Toys Wins?

By Anthony H. Cordesman

Airbus Warns on Consequences of Damaging Brexit Customs Delays and Red Tape

By Howard Wheeldon, FRAeS, Wheeldon Strategic Advisory Ltd.

TAILPIECE

“Researchers are using powerful X-rays to look inside cannonballs found on the famous Tudor ship, the Mary Rose. They are trying to find a way of preserving the shot…”. (BBC News, 9 Mar 18.) (Source: DNA DEFENCE NEWS ANALYSIS, Issue 18/10, 12 Mar 18)

CONTACT DETAILS

Julian Nettlefold

BATTLESPACE Publications

8 Sinclair Gardens

London W14 0AT

Tel/Fax: +44 (0)207 6105520

Mobile: +44 077689 54766

e-mail

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NEWS IN BRIEF – EUROPE

Web Page sponsored by Harris Corporation

http://www.harrisforcemodernization.com

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06 Mar 18. Iraq and Syria: OP SHADER. On 14 Feb 18 Typhoons destroyed a mechanical excavator used by terrorists to construct fortified positions in Eastern Syria. Operations continued in Eastern Syria on 16 Feb 18 with Typhoons and Tornados providing close air support to Syrian Democratic Forces engaged in ground close combat with Daesh fighters. A Reaper

patrolled over the Euphrates on 20 Feb 18, striking armed terrorists. On 28 Feb 18 Typhoons attacked two Daesh armoured vehicles North East of Abu Kamal as a second Typhoon flight destroyed a key road in the

area. On 3 Mar 18 Typhoons demolished four Daesh buildings and on the following day a Typhoon destroyed a tunnel used by the terrorists as a weapons cache. (MoD, 6 Mar 18.)

Comment: RAF aircraft have carried out nearly 1,700 strikes against Daesh in Iraq and Syria since 2014. In the three weeks to 6 Mar 18, RAF aircraft destroyed armoured vehicles, terrorist bases and weapon stores while disrupting supply routes. (Source: DNA DEFENCE NEWS ANALYSIS, Issue 18/10, 12 Mar 18)

07 Mar 18. Saudi Arabia: Crown Prince’s Visit. The Crown Prince of Saudi Arabia visited the UK from 7 to 9 Mar 18. HRH Mohammed bin Salman’s visit to the UK was the first since he became Crown Prince in June 2017. In the words of the Defence Secretary: “The Crown Prince’s visit has opened up a new chapter in our two countries historic relationship.”. The Crown Prince and the Defence Secretary signed a Memorandum of Intent for the purchase of 48 Typhoon aircraft. The official notification stated that: “Saudi Arabia is amongst the largest political, diplomatic and economic

powers in the Middle East and the visit will usher in a new era in our bilateral relations with one of our oldest friends in the region.”.

Comment: ‘UK Relations: Saudi Arabia’ were debated in the House of Commons on 7 Mar 18 and recorded in Hansard, starting in Column 313. (Source: DNA DEFENCE NEWS ANALYSIS, Issue 18/10, 12 Mar 18)

09 Mar 18. Nerve Agent: Salisbury Incident. The Counter-Terrorism Policing Network requested (9 Mar 18) military assistance following the poisoning of the former Russian spy Sergei Skripal and his daughter in Salisbury. The Defence Secretary subsequently confirmed that “our armed forces have stepped up to support the Police in their investigation”.

Comment: Around 180 personnel were reportedly deployed to assist with the removal of vehicles and objects from the scene. The Defence CBRN Centre is located at Winterbourne Gunner, near Salisbury. (Source: DNA DEFENCE NEWS ANALYSIS, Issue 18/10, 12 Mar 18)

08 Mar 18. Cyber Security: Cyber Defence School. The Armed Forces’ Minister opened (8 Mar 18) a new Cyber Defence School at the Defence Academy, Shrivenham. The “centre of excellence” will train personnel from across Defence and the wider Government in dealing with emerging threats. From April 2018, Rapid Response Teams will be established and will be available to deploy to locations around the UK and overseas to tackle malicious cyber activity.

Comment: The Cyber Defence School initiative builds on current capabilities including the Global Operations and Security Control Centre at MoD Corsham and the MoD’s Computer Emergency Response Team (MOD-CERT). Plans to establish a cyber training centre of excellence were highlighted in the ‘National Cyber Security Strategy 2016-2021’ published on 1 Nov 16. (Source: DNA DEFENCE NEWS ANALYSIS, Issue 18/10, 12 Mar 18)

08 Mar 18. Undersea Cables: Resilience. The Lord’s Spokesman for the Department for Digital, Culture, Media and Sport (DCMS) said (8 Mar 18) that the Department is working with industry “to improve the security and resilience of the UK’s submarine cable network.” The Spokesman explained that there are 11 landing sites in the UK for transatlantic cables at various locations, adding that: “Because of the resilience of the system, when one particular cable is broken the system still continues.” About 30 to 40 cable breakages occur each year, mostly as the result of accidents.

Comment: Telecommunications is one of the 13 critical national infrastructure sectors which also includes: Chemicals, Civil Nuclear, Defence, Emergency Services, Energy, Finance, Food, Government, Health, Space, Transport and Water. The DCMS is responsible for co-ordinating resilience within the Telecommunications sector and works closely with the Home Office (GCHQ) and the MoD. (Source: DNA DEFENCE NEWS ANALYSIS, Issue 18/10, 12 Mar 18)

08 Mar 18. RFA Lyme Bay: Back in Fleet Time. After completing a refit and a re-store, followed by sea trials and leave, RFA Lyme Bay returned to the Fleet (8 Mar 18). Ahead of impending Operational Sea Training (OST) and in order to prove aviation capability, the amphibious support ship embarked an 815 NAS Wildcat helicopter.

Comment: Having completed regeneration, Lyme Bay’s capabilities are due to be tested during four weeks of OST. EX JOINT WARRIOR 18, off the West coast of Scotland, will follow in April 2018. Lyme Bay’s Commanding Officer has described his duties as: “…delivering global maritime operational support to the Royal Navy, and our coalition partners, wherever and whenever required.” (Source: DNA DEFENCE NEWS ANALYSIS, Issue 18/10, 12 Mar 18)

06 Mar 18. Bridging: Project TYRO. The Defence Procurement Minister said (6 Mar 18) that the MoD expects to be in a position to confirm its plans for a replacement bridge system (Project TYRO) by late 2019. The overall cost of the project will be confirmed at final approval.

Comment: As the Minister subsequently (7 Mar 18) made clear, Project TYRO is to deliver the future Close Support Bridging and General Support Bridging capability, replacing the current BR90 Bridging System. Units

which operate the BR90 system, within the Corps of Royal Engineers, are: 21, 22, 26, 32, 35 and 36 Engineer

Regiments. Project TYRO is currently in its Assessment Phase. (Source: DNA DEFENCE NEWS ANALYSIS, Issue 18/10, 12 Mar 18)

09 Mar 18. Hunt Class Minehunters: Two Decommissioned. Warship World (Jan/Feb 18) confirmed that ATHERSTONE and QUORN were decommissioned on 14 Dec 17

“in a low-key ceremony”, with the media excluded from the event. Both vessels were due for a major mid-life overhaul and upgrade but “the refits were quietly cancelled and the ships put up for disposal”.

Comment: Previously published decommissioning dates were 2022 for ATHERSTONE and 2023 for QUORN. It has been suggested that the two minehunters fell victim to “continuing recruitment issues” and the reduction in ship numbers “should help reduce the pressure on MCM crews”. All in all, this is a sorry tale! (Source: DNA DEFENCE NEWS ANALYSIS, Issue 18/10, 12 Mar 18)

05 Mar 18. Joint Exercises: UK Involvement. The Defence Spokesman in the House of Lords gave details (5 Mar 18) of UK involvement in international

military exercises. In 2018 the UK is due to take part in over 25 major international exercises and a similar number are planned for 2019. The cornerstone of the Exercise Programme is: NATO, the Joint Expeditionary

Force (JEF) Partner Nations and the Combined Joint Expeditionary Force (CJEF) alliance between the UK and France. EX TRIDENT JUNCTURE in November 2018 will be a major NATO Exercise based on Scandinavia

and involving multinational forces totalling 35,000 personnel. (The UK is to contribute a Maritime Task Group, an Air Component and a Brigade-sized land force.) EX JOINT WARRIOR is the main JEF Exercise while the CJEF will conduct five major exercises in 2018-19.

Comment: In addition to the above, the UK also participates in “significant bilateral exercise activity”. In 2018 the MoD’s largest Exercise will be EX SAIF SAREEA in Oman involving over 6,000 UK personnel, including: a Maritime Task Force (made up of a Royal Marines unit and RN amphibious warships), an Army Brigade and an RAF Wing (with Typhoon fighter jets and transport aircraft). (Source: DNA DEFENCE NEWS ANALYSIS, Issue 18/10, 12 Mar 18)

07 Mar 18. Asia-Pacific Deployment: Activities. The Defence Secretary confirmed (7 Mar 18) that personnel from the Type 23 frigates HMS SUTHERLAND and HMS ARGYLL will be taking part in joint exercises with the Japanese Maritime Self-Defense Force during their respective deployments in 2018. Around 45 Army personnel will also take part in a land-based Exercise in Japan in October 2018 with elements of the Japanese Ground Self-Defense Force. HMS SUTHERLAND and HMS ARGYLL are also due to take part in joint exercises with the Republic of Korea.

Comment: The RN reported (9 Mar 18) that HMS SUTHERLAND had sailed into Sydney Harbour, her final port call in Australia during the ship’s seven-month deployment. As part of the UK’s commitments to upholding the Korean Armistice Agreement, personnel regularly take part in joint exercises with the armed forces of the Republic of Korea. The number of personnel due to take part in the UN Command-led Exercise KEY RESOLVE in Spring 2018 is: Royal Navy (6), Army (44) and RAF (6). (Source: DNA DEFENCE NEWS ANALYSIS, Issue 18/10, 12 Mar 18)

09 Mar 18. UK Export Control Joint Unit Issues Notice to Exporters 2018/06 on EU Survey on “Specially Designed for Military Use.” The U.K. Government’s Export Control Joint Unit is issued Notice to Exporters 2018/06 on the European Commission’s survey on “specially designed for military use.” European Union Member States have produced some draft guidance on the meaning of ‘specially designed for military use’, an expression widely used in export control legislation. The guidance is intended to help Member State competent authorities and the European defence industry establish whether a particular item is specially designed for military use. Once finalised, the guidance should help to achieve a common interpretation of this term across the Union. The Commission has invited comments from European industry on this draft guidance via this online survey: Survey: Guideline for ‘Specially Designed for Military Use’ – 2018. The Export Control Joint Unit (ECJU) believes that this issue is important to UK exporters. Please respond to the survey so that your views can be taken into account. This survey is open for 3 months from 1 March 2018. (Source: glstrade.com)

10 Mar 18. Battle for future of GKN reaches critical turning point Deal to sell automotive business to Dana of US raises pressure on Melrose and its bid. GKN’s Driveline business provides parts and systems to almost half the world’s The battle for the future of GKN reached a critical turning point on Friday when the UK engineer struck a deal to sell its Driveline automotive business to Dana of the US, in a $6bn cash-and-share transaction that will create an automotive supplier with sales of more than $14bn. The move to combine GKN’s vehicle drive business with one of the oldest US automotive suppliers steps up the pressure on Melrose Industries to increase its hostile £7bn cash-and-share bid for the 259-year-old FTSE company. However, Melrose insisted it would not be thwarted and accused GKN management of a “hasty” sale to fend off its bid. “Today’s announcement changes nothing and is a further admission of the management failure of GKN,” said Christopher Miller, chairman of Melrose. “A hasty sale of one of Britain’s most important businesses will leave it listed overseas, run by a foreign management team and rebranded as a US business. In our view it is structured in a way prejudicial to GKN shareholders’ interests.” GKN’s Driveline business provides parts and systems to almost half the world’s passenger cars and light trucks. Management denied that the decision to sell was aimed purely at thwarting Melrose’s offer. “It is a very good deal for our shareholders,” said Anne Stevens, GKN chief executive. “This is a much more beneficial package than the derisory offer that Melrose has put on table.” The $235m [of synergies] we are announcing can only be achieved when you [combine] two businesses with such complementary markets . . . and complementary products James Kamsickas, chief executive of Dana Under the terms of the deal, GKN shareholders will receive shares in Dana amounting to 47.25 per cent of the enlarged business. Dana will also pay GKN $1.6bn in cash and the combined group will take on $1bn of GKN’s pension deficit. That will leave GKN with its powder metallurgy business — which is up for sale — and a focus on aerospace, where it is a major supplier to Boeing, Airbus and Bombardier. The group will use about half the $1.6bn cash proceeds to eliminate the UK pension fund deficit, the first time in decades the scheme will be fully funded. “We are freeing the business from its [pension] deficit and liabilities,” said Jos Sclater, finance director of GKN. “The deal provides enhanced value and reduced risk.” The combination of GKN’s vehicle drive businesses, which last year generated £5.3bn in sales, with 104-year-old Dana would create a company spanning all segments of the automotive market, with leading positions in the US, Europe and Asia, the companies said. Analysts gave a cautious welcome to the transaction. While several said it made strategic sense, there was a question over whether GKN’s UK investors would welcome shares in a US-listed entity. “That may not appeal to everyone,” said Sandy Morris, analyst at Jefferies investment bank. “However, Dana plus GKN Driveline is . . . an interesting proposition. It will be some time before completion so many shareholders have time to assess whether they can accommodate a shareholding in Dana.” Recommended Lex on GKN/Dana: driving a harder bargain Matthew Vincent: GKN and Melrose show talent — but neither is a national champion GKN faces fight of its life in hostile bid battle FT View: The GKN debate reflects loss of trust in markets GKN seeks A-C grade after answering £7bn takeover questions Dana’s management insisted that combining the two companies would create value that could not be achieved by a financial buyer. James Kamsickas, chief executive of Dana, said the combined group would deliver synergies of some $235m on top of the savings achieved by GKN’s own cost-cutting programme, Project Boost. “The $235m we are announcing can only be achieved when you [combine] two businesses with such complementary markets . . . and complementary products,” he said. Including debt, the deal values Driveline at $6.1bn based on Dana’s Thursday closing share price of $26.20, equivalent to 7.5 times enterprise value to earnings before interest, tax, depreciation and amortisation. It will be subject to approval by both companies’ shareholders and to Melrose failing in its attempt to buy GKN. Melrose’s bid of 1.49 of its shares plus 81p values GKN shares at 415.8p, against Friday’s close of 435.1p. GKN is advised on this deal by Gleacher Shacklock and JPMorgan. Dana is advised by Credit Suisse and Barclays. (Source: FT.com)

09 Mar 18. GKN- Melrose, its all to play for. At a meeting in the City of London today at the offices of UBS, GKN management gave shareholders and analysts an update on the GKN-Dana deal announced earlier that day. (See: BATTLESPACE ALERT Vol.20 ISSUE 06, 09 March 2018, Proposed combination of GKN Driveline and Dana)

With this deal GKN becomes a pure aerospace business with management planning to exit other businesses such as powder metallurgy and the rump of its Land Business, with Off Road going into the Dana deal. The Portsmouth fuel tank business is currently being marketed and the US armoured glass business being run down withn the UK Wheels business also slated for sale. In all reality without the Daana deal announced today, then GKN would undoubtedly fall to the Melrose bid in spite of numerous industrial and political objections. This is because Melrose is offering cash upfront and not jam tomorrow. It will inevitably go down to the wire with Melrose having until March 29 to up its bid or withdraw. From an industrial perspective the Dana deal will form the latest driveline business in the world and solve GKN’s pension problem. But will it give enough comfort and cash up front? All to play for! (See also Features: GKN – The Next 150 Years – A Family Viewpoint, By Julian Nettlefold)

09 Mar 18. NATO urges more security in U-space and data sharing. NATO is calling for proper provision for military requirements in the creation of so-called U-space – airspace populated with unmanned aerial vehicles.

NATO Defence Investment division director of armament and aerospace capabilities Giorgio Cioni told the World Air Traffic Management Congress in Madrid March 6-8 that he heard “a lot of discussion about the safety of operations in U-space, but not much about security. We need to ensure we are able to counter any malicious activity because we cannot hide from the reality that there could be cases where drones are used for malicious purposes. That is an area where there are a lot of challenges because in U-space drones will be operating, perhaps autonomously, where it will also be necessary to operate military and security services.”

Cioni stressed that NATO fully supported closer civil and military cooperation and was working closely with the aviation sector to optimize airspace enhancements. This cooperation was achieved through the NATO aviation committee with member states and also engagement with Australia, New Zealand and Japan and a number of international aviation organizations and institutions.

“We want to be sure that NATO maintains a platform to enable this dialogue and cooperation not only on traditional issues, but also looking at new dimensions and new areas of work,” he told the conference. He said that there was a new security environment facing NATO and one which was changing rapidly, pushing cyber security well up the NATO agenda.

“At the last NATO summit, cyber [security] was recognized as a new operational domain in addition to air, land and marine. This means that there is a completely new dimension which requires close cooperation between military and civil. While on one hand, we acknowledge we need to ensure the wider sharing of information among aviation partners, on the other hand we need to ensure that this sharing of information is somehow taking place in a controlled environment to ensure that this information is shared, but not utilized for other purposes. Yes, there is a need for better sharing of data, but there is an issue of security and how to protect the information that is shared. Data sharing is an area we still have to develop in terms of a civil/mil interface,” he said.

Another focus area for NATO, especially in Europe, is the maintenance of traditional ground-based navigation aids because “they represent an element of redundancy in the system that is less vulnerable to cyber attack,” Cioni said. “As we move ahead with new technology, we should also look at this issue of providing redundancy through traditional navaids.”

The issue for air navigation service providers, however, is cost and how to justify asking their customers to fund investment in and maintenance of old technology purely for redundancy purposes.

In a panel discussion on the changing face of partnerships and alliances in ATM, Cioni acknowledged that these cooperation initiatives would help achieve better global interoperability. “At the moment, there are ‘clusters’ in the US, Europe and elsewhere around the world where there are alliances and other forms of cooperation, but they are not necessarily all harmonized,” he said. “Perhaps in 10 years’ time, we will have more global harmonization that will enable the military to operate globally following a harmonized set of standards.” (Source: Google/ATW)

08 Mar 18. UK submarine arrives in the Arctic for joint exercise with USN. A UK Royal Navy (RN) nuclear-powered attack submarine is heading under the Arctic ice pack for the first time in more than a decade as part of a joint exercise with two US Navy (USN) submarines.

‘Ice Exercise 2018’ (‘ICEX’), which started on 7 March, aims to test operational readiness in the Arctic, increase experience in the region, advance understanding of the Arctic environment, and continue to develop relationships with other services, allies, and partner organisations.

The RN last sent an attack submarine under the Arctic ice in 2007, but the exercise was cut short when an accident on the Trafalgar-class boat HMS Tireless led to the deaths of two sailors. In 2016 the RN announced it wanted to return its submarines to this strategic region and it began sending personnel on exchange to USN boats to regain experience of under-ice operations.

The five-week-long exercise in the Arctic Ocean began with the construction of temporary Ice Camp Skate following the arrival of the USN’s Seawolf-class fast-attack submarine USS Connecticut (SSN 22) and Los Angeles-class fast-attack submarine USS Hartford (SSN 768), and the RN’s Trafalgar-class submarine HMS Trenchant(S91) on 7 March. Drills will include multiple arctic transits, a North Pole surfacing, scientific data collection, and other training evolutions during their time in the region.

“With every ‘ICEX’ we are able to build upon our existing experience and continue to learn the best way to operate in this unique and harsh environment,” Rear Admiral James Pitts, commander of the USN’s Undersea Warfare Development Center, said in a statement. “We are constantly testing new tactics, techniques, and procedures under the ice and this exercise allows us to do so on a larger scale and alongside our UK, joint, and academic partners.” (Source: Defense News Early Bird/IHS Jane’s)

07 Mar 18. Top NATO General (A Czech) To Europe: ‘Grow Up.’ After two decades of watching the American share of the NATO budget grow from 50 to 75 percent, the alliance’s leadership is determined to learn how to operate without the usual American help, even as nationalist movements roil the capitals of the tran sAtlantic alliance and Vladimir Putin hacks his way through democratic elections.

Meeting with a handful of reporters in Washington on Wednesday as he prepares for retirement in June, the alliance’s Gen. Petr Pavel said Europe needs to rethink how it readies itself for an uncertain future. “Europe needs to mature and grow up and be more responsible for its own defense,” the Czech general said, adding that it’s time European countries “provide all the capabilities to handle a regional crisis without American engagement, if the United States does not wish to engage.”

After several years of warnings from candidate — and now president – Donald Trump demanding Europe assume more responsibility for its own security, and hearing the same from administration officials traveling in Europe over the past year, he said the alliance is moving toward that maturity.

Pavel was quick to say he “is fine” with the calls from Washington for Europeans to spend more on defense, and feels that the will exists in Europe’s capitals to do so. The US and Europe “have to stay together” to confront shared threats like Russia and terrorism that are on Europe’s doorstep.

Those two problem sets can form a toxic mix, as we see playing out in the U.K. where a former Russian military intelligence colonel who spied for the West was attacked – along with his daughter – by a nerve agent earlier this week. The two, along with a police officer who responded to a call for help, are in critical condition.

The attack recalls a similar assault on Putin critic Alexander Litvinenko in 2006, who was fatally poisoned in London with a rare radioactive metal, polonium. The British government concluded in 2016 that he had been murdered by Russian operatives, likely with the direct knowledge of Russian President Vladimir Putin.

Despite Pavel’s reassuring tone, however, Europe is worried.

In a visit with Defense Secretary James Mattis at the Pentagon on Wednesday, Estonian Defense Minister Jüri Luik praised his host’s “personal commitment to the transatlantic relationship,” since, as he deadpanned, “let’s be honest, I mean, without the U.S. commitment, deterrent, the defense capabilities of our transatlantic family would be not sufficient to fulfill all of these complicated tasks which we face.”

Estonia was the recipient of what is widely considered to be the first massive cyber attack against an entire nation. The event was the result of a decision in 2007 to remove a statue of a Red Army solder from the capital of Tallinn. What followed was a wave of botnet attacks that shut down news outlets and government email servers, and took down online banking services for weeks.

Since then, Estonia has been a leader in cyber best practices, and is one of only a handful of NATO countries – including the US, UK, Greece, Romania, Latvia and Lithuania to meet, or approach, the 2 percent goal of defense spending the alliance agreed to in 2014.

There are threats brewing within the alliance as well. The past year has seen a wave of nationalist, and at times xenophobic, politicians who have won elections in NATO countries from Italy, Poland, Hungary, Germany, the UK and the United States. Of this trend, Pavel was less forgiving. Calls for isolationism and appeals to nationalist or ethnic identity politics “is always a substitute for a lack of policies,” he told me. “Whenever a government gets into trouble it turns to nationalism because it is then easy to generate support. But I believe these tendencies will not prevail” among members of the alliance.

In the face of populist movements, it’s important for NATO leaders to recall the shared values of democracy and inclusion, he said, and to “stress the values on which Western democracies are built.”

Pavel was reluctant to single out any one NATO member for criticism, but the recent Russian agreement to sell its sophisticated S-400 air defense system to Turkey was clearly an immediate cause for concern. The move comes after years of tension between Ankara and its allies, which have admonished the government of President Recep Tayyip Erdogan for assaulting and jailing journalists, arresting human rights activists, and rolling back the democratic institutions that Turkey has been slowly building for years.

The radar and missile system – which has yet to be delivered — will have to operate as a standalone unit, since it can’t be networked with any NATO technologies already in the country.

But the system itself is less an issue as the database that will have to be built to make it operational. “The value of the system is in the database,” Pavel said, “and the database will be collected on the territory of a NATO ally, with all allied assets present in Turkey” being mapped and logged into Russian systems, hesaid. Getting the S-400 ready for battle isn’t like handing a soldier a Kalashnikov, which can be used by any untrained soldier. Rather, Russian personnel will be on the ground to instruct the Turkish military how to operate the complicated radars and fire control systems, handing Moscow critical intelligence on what NATO assets are in the country, where they are, and what kind of capabilities they may have.

The United States stores as many as 50 B61 gravity bombs in Turkey, part of the estimated 150 American nuclear weapons spread throughout Europe.

Just as it would be “hard to imagine that NATO experts would be sitting in Russia for several months and feeding the database,” Pavel said, “it is hard to imagine that Russian experts will be sitting in a NATO ally and feeding a Russian system with NATO data.”

On Tuesday, Turkish President Recep Tayyip Erdogan ripped into his NATO partners for opposing the purchase of the S-400. Greece already operates the less advanced S-300 system, Erdogan said, “but you said that you will not let Turkey acquire S-400. You claimed that the contact with Russia was a mistake. You also said that you might introduce sanctions. We are not going to be accountable to you. We will proceed along the right way without any concessions for the sake of achieving our own goals.”

NATO allies have long been concerned about Russia’s comparative advantages along the alliance’s borders. The United States has helped beef up NATO’s presence in the Baltics by sending hundreds of troops and dozens of tanks and armored vehicles to flesh out new units put in place to deter any possible Russian aggression against it’s former vassal states.

But a new RAND report points out that the 32,000 NATO troops in the Baltics face almost 80,000 highly mobile Russian forces just over the border. Russia also has an advantage in tanks in the region, with 757 main battle tanks, compared with NATO’s 129.

Russia has also placed an emphasis on being able to mass forces in its border regions, the report says, using rail and road networks to “enjoy a significant time-distance advantage in generating combat forces during the opening period of a crisis.” And the NATO advantage in air power would also be significantly tested given the defenses in the Russian exclave of Kaliningrad, giving the Kremlin an “advantage in advanced integrated air defenses.”

On top of all that, mil-to-mil contacts that have long been in place to for NATO and Russia to share information appear to have broken down. Pavel shared that NATO’s Supreme Allied Commander, Gen. Curtis Scaparrotti, has been trying to meet with his Russian counterpart, Gen. Valery Gerasimov, only to have planned meetings cancelled three times by the Russians. The NATO-Russia Council has not met since October, after hosting three meetings last year. Pavel doesn’t expect another meeting until after the Russian presidential election, which kicks off on March 18. (Source: Breaking Defense.com)

07 Mar 18. F-35 in peril as Italy’s Five Star political party nears power. Italy’s commitment to the F-35 fighter jet may be in doubt, as an Italian political party which has promised to scrap the program edges closer to power. Italy held elections March 4 ,which handed no party a clear victory, ushering in a hung Parliament and weeks of negotiations to build a working coalition. One of the poorest performers at the polls was the incumbent center-left Democratic Party, which received 19 percent of votes. The strongest performer was the anti-establishment Five Star party, which took 32 percent and has claimed it has the right to form a government.

A coalition of right-wing parties, backed by former Prime Minister Silvio Berlusconi, took 37 percent of votes and has said it should be called on by Italy’s president to form a government.

Five Star is reportedly mulling a tie-up with the Democratic Party, which would give the former the numbers to forge a working majority in Parliament. Formed in 2009 to fight corruption and waste in politics, Five Star officials last year said they would scrap the F-35 program if they took office.

“There will be no ifs or buts about leaving the F-35 program,” Tatiana Basilio, a Five Star member of Parliament, said in May.

Italy is due to purchase 60 F-35As and 30 F-35Bs. The country has already taken delivery of nine F-35As from its own final assembly line at Cameri in northern Italy. Five are now flying from the Italian Air Force’s Amendola Air Base and four are involved in pilot training at Luke Air Force Base, Arizona.

On March 1, the F-35s at Amendola were officially declared operational assets within Italy’s air defense system, the Italian Air Force said.

In January, the first F-35B to be assembled outside the U.S., which is destined to fly with the Italian Navy, was handed over to Italy.

Five Star officials have said Italy should be investing in cyberwarfare before footing the bill for traditional offensive weapons like missiles and strike aircraft.

“The central idea is the possibility to shift most of the public investment today used for traditional armament programs into development and research into more modern programs like cyber defense and intelligence,” the party’s defense manifesto states.

“€14bn [or U.S. $17bn] for 90 F-35s is too costly, and we are putting ourselves in the hands of the U.S.,” Basilio said in May. “All the software belongs to Lockheed Martin and we will never have a say, while all our pilots and maintenance staff must be trained in the U.S. If we were in government, we would have already closed the program.”

Basilio said Italy should have opted instead to upgrade its Eurofighter aircraft to take on the strike role destined for the F-35. (Source: Defense News)

07 Mar 18. NATO Military Chairman Seeks Constructive Contacts With Russia. The chairman of NATO’s Military Committee would like to see the NATO-Russia Council reinvigorated to address issues pending between the two entities.

Gen. Petr Pavel of the Czech army said Russia must show through actions, not just words, that it is ready for such a development. The general spoke to the Defense Writers Group this morning at George Washington University here.

Pavel said he believes there is a chance for improved relations between the alliance and Russia. “I am always a cautious optimist,” he told the writers. “I believe that there is a chance to have better relations between NATO and Russia, but what we need is more willingness on the Russian side that would assure the alliance that Russia has serious interest in making this relationship better.”

Russia must take steps, in other words, to prove it is serious, and the general said he will not ignore past bad behavior. “It is difficult to sit at the table knowing there are occupied territories in Georgia, that there is direct Russian support to separatists in [Ukraine’s Dombass region], that there is the Crimea that was occupied illegally,” he said. “There are a number of not only concrete measures, but also narratives that are creating tensions. We need to have more common will to engage in a constructive dialogue.”

The best place to start would be in Ukraine, Pavel said. “Until there is a solution in Ukraine, there will not be an improvement in relations,” he added. One step in the right direction would be for Russia to allow United Nations or Organization for Security and Cooperation in Europe missions into the contested region. “That would be a clear sign of a constructive approach,” the general said. “At that point, we can start thinking about other steps to improve coordination and dialogue.”

Russian Military Doctrine

There are no hard-and-fast lines between peace and war in Russian military doctrine — it is a spectrum, the general said, adding that the Russian government views its actions against neighbors such as Georgia and Ukraine as the low end of continuous conflict.

What NATO calls “hybrid war” or some observers call the “Gerasimov Doctrine” – after Gen. Pavel Gerasimov, Russia’s chief of defense – is the use of information operations, troop movements, propaganda, economic moves and diplomacy to gain Russian President Vladimir Putin’s objectives. It is a “way to influence development in a number of countries,” Pavel said. “This is a new reality we have to learn from and adjust to. Russia is using opportunities provided by new technologies and some gaps in international norms to its benefit.”

Pavel said he would like to see some sort of agreement to define the rules of behavior in cyberspace. “It’s a big question today how we will address it, how we will create a similar regulatory framework as in the conventional or nuclear — the same framework has to be developed in cyber,” he said. “We will have to work on this issue not only with Russia, but with other big actors like China.”

The NATO-Russia Council had three meeting last year, and another will be scheduled after Russia’s March 18 elections, Pavel said. Scheduling a meeting is a problem, he noted, as Russia has neither an ambassador nor a senior military representative to NATO.

Military-to-military contacts are important, Pavel said, but Moscow cancelled a scheduled meeting between U.S. Army Gen. Curtis M. Scaparrotti, NATO’s supreme allied commander for Europe, and Gerasimov. Pavel said he would like to continue his and Scaparrotti’s military-to-military contacts with the Russian military leader. “Both these channels are important and can bring a substantial level of detail to the NATO-Russia Council,” he added.

Moving the Dialogue Forward

“We need probably more impulse to move the dialogue forward,” Pavel said. “Up to now, the standard agenda is quite vague. We need to get more into substance to move ahead, including the issues that we call hybrid, which is a quite broad area. Cyber and other issues must be addressed.”

The standard agenda for the council is limited to Ukraine, risk reduction and transparency, the general told the writers. “I believe we will have to go a little bit more into the depth, because without addressing concrete measures, concrete numbers, concrete actions, it is difficult to proceed,” he said. “I think we need the will on both sides to move ahead with the agenda to set up progress.”

Putin’s March 1 speech was not so much on the state of the country, but an address on the state of the military, Pavel said. The speech “also illustrates the need for extensive dialogue with Russia on disarmament, especially in the nuclear arena,” he added.

“All these developments may turn dangerous if they are not handled carefully from the very beginning,” he said.

Increased Concerns

The Russian military buildup and modernization leads to increased concerns and fear in the population in the Baltic republics, Pavel said. “That’s why NATO created the enhanced forward presence with rotational battle groups to demonstrate NATO resolve to act if necessary,” he said. “We are doing the best to keep the level of this military presence below being threatening to Russia — we didn’t want to bring any competition to bring more forces to the region.

“We wanted to demonstrate at a very proportionate level that most of NATO allies are present and the commitment to Article 5 is solid, he continued. “All NATO allies will act if there is a violation of the NATO treaty.”

Article 5 of the Washington Treaty, which established the NATO alliance, addresses the principle of collective defense, with an attack against one ally considered as an attack on all allies. (Follow Jim Garamone on Twitter: @GaramoneDoDNews)

06 Mar 18. Savings plans at UK defence ministry ‘cause daily confusion.’ Top civil servant admits four ‘efficiency programmes’ in 8 years are causing trouble. The UK is committed to a series of efficiency programmes to cover the costs of a £178bn new equipment programme. The most senior civil servant at the Ministry of Defence has admitted that efforts to save money through overlapping efficiency programmes lead to “confusion” and “double counting” on a daily basis. In frank comments to an audience of defence experts in London, Stephen Lovegrove, permanent secretary at the MoD, called for a more “realistic” approach to reducing costs as the department tries to save £20bn over the next decade. “We have to recognise the efficiency campsite we inhabit at the moment has become too crowded and too untidy,” he said in a speech to the Royal United Services Institute, a think-tank. “At least four different efficiency programmes have been adopted by the department in the last eight years and the dangers of double counting and confusion are apparent on a daily basis.” The UK is committed to a series of efficiency programmes to cover the costs of a £178bn new equipment programme that includes F-35 fighter jets, frigates and maritime patrol aircraft. In December, MPs on the defence select committee raised serious doubts about the MoD’s ability to meet those efficiency targets, recommending the department carry out “a comprehensive review of its efficiency plans”. Referring to evidence previously given to the committee by Mr Lovegrove, the MPs said: “Our confidence in the department’s ability to deliver these savings has not been enhanced by the inconsistent set of targets referred to by the permanent secretary, including a £20bn target that appeared to leave even the former secretary of state for defence [Sir Michael Fallon] confused.” Mr Lovegrove has acknowledged the problems and confusion caused by multiple savings programmes in the past but on Monday went further. “We need to urgently untangle those knots and own right across defence a holistic and realistic picture of what we can do,” he said. Recommended Gavin Williamson’s rapid ascent reveals naked ambition UK missed 2% defence spending target, report claims UK defence minister tries a pre-emptive strike over his life story His remarks come a month after Gavin Williamson, the defence secretary, secured more time for a review of the UK’s defence capabilities after growing concerns that Britain will have to make further deep cuts to its armed forces to make ends meet. The defence modernisation programme will report before this July’s summit of Nato members in Brussels and is now separate from a wider national security capability review, being overseen by Mark Sedwill, national security adviser, due in the coming weeks. Mr Williamson has been engaged in a public battle with Philip Hammond, the chancellor, over more money for defence, arguing that the UK needs to raise its current commitment to spend 2 per cent of GDP to meet a growing threat from hostile states such as Russia and North Korea as well as from cyber and new forms of hybrid warfare. Mr Lovegrove said the new defence review was necessary to tackle a “cross contamination of risks which greatly magnify” the threats highlighted in the last national defence review completed in 2015. “The pace of change has quickened alarmingly,” he added. (Source: FT.com)

05 Mar 18. Exercise TOXIC DAGGER is supported by Dstl, along with Public Health England and The Atomic Weapons Establishment (AWE), and is the largest exercise of its kind in the country. Specialists in CBRN from Dstl and AWE are able to create realistic exercise scenarios based on the latest threat information. Completing the training and exercising against these scenarios provides a challenging programme for the Royal Marines to demonstrate their proficiency in the methods to detect, assess and mitigate a CBRN threat. The three-week programme included Company-level attacks and scenarios concerning CBRN vignettes, concluding with a full-scale exercise involving government and industry scientists and more than 300 military personnel.

Major Rob Garside, from 40 Commando Royal Marines, said: “Working with Dstl means we have the most up-to-date information and a realistic exercise. This ensures we are well prepared for a CBRN operating environment. It is vital we can make rapid decisions and are able to protect and support specialists who come in to deal with any incident. On operations these specialists are on hand to advise and we must ensure we already have a strong understanding of their capabilities and what they require of us as a military force.”

The Dstl lead for CBRN exercises said: “40 Commando would be first on the ground in the event of a CBRN incident. We ensure they’re up to date on the latest threats and make the exercise truly realistic. They not only have to provide a fighting force in an unstable environment, they must also be able to assess the scene and know what they’re dealing with. That’s where Dstl, PHE, AWE and the Defence CBRN Centre come in, as we provide the technical information the Marines require.”

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08 Mar 18. Boeing has ‘cash horsepower’ for targeted acquisitions – CEO. The head of Boeing Co (BA.N) said on Thursday the U.S. planemaker can absorb transactions on the scale of a proposed tie-up with Brazil’s Embraer without putting at risk internal investments in its business or returning cash to shareholders. Chairman and Chief Executive Dennis Muilenburg also told Reuters in an interview that Boeing was “making progress” in talks with the Brazilian aerospace company. It continues to study a number of possible structures for a deal, which some outside analysts have said could value Embraer at $5-6bn.

“Acquisitions of the scale of Embraer are not only very doable for us, they are also things we can selectively do, aligned with our (cash deployment) strategy,” Muilenburg said.

“We have plenty of cash horsepower to do all three things: invest organically, return to shareholders and then make these targeted acquisitions,” he added.

Boeing is targeting operating cashflow of $15bn and combined research & development and capital expenditure of $5.9bn this year. It has pledged to return 100 percent of free cashflow to shareholders.

Brazilian President Michel Temer is weighing a proposal for the two companies to forge a commercial aviation venture, his office said last week, after the government opposed an outright takeover of Embraer which also builds military aircraft.

“We are not done yet; there is still work to go. But we are making progress so I am hopeful that we can complete it,” Muilenburg said, reiterating the deal was not a “must” for Boeing.

“We continue to evaluate all parts of the enterprise, different potential ownership structures” that range from support to full ownership, he said.

Boeing shares closed up 0.5 percent at $348.73.

Asked whether such overseas tie-ups were more difficult with rising protectionist sentiment, Muilenburg said Boeing would not let up on its global expansion which, if done strategically, would increase jobs in the United States and abroad.

OPEN TRADE

Speaking in his 36th-floor Chicago office with views across to Lake Michigan, Muilenburg declined to be drawn on the issue of steel and aluminum tariffs just prior to U.S. President Donald Trump’s announcement about them on Thursday.

He reiterated his longstanding general support for open trade. “Our position is we want free and open trade, good solid global trade is good for our business and we are going to be strong proponents of that,” he said.

Muilenburg downplayed concerns of a backlash from China, which has ordered thousands of jets. Boeing plans to open a new aircraft completion plant in China.

“You see some tough rhetoric but when I look below the surface, and having talked with both President Trump and President Xi (Jinping), I think there is a true desire to have a productive trade relationship between the two countries,” he said.

Muilenburg said Boeing had not decided whether to appeal after losing a price dumping case against Canada’s Bombardier (BBDb.TO) but would sue again if provoked to do so again.

He said Boeing was in “no rush” to decide whether to launch a new mid-market jetliner, which could enter service in 2024-25.

“It is a decision we will probably get to over the next year or so,” he said.

The jet is expected to pioneer an advanced production system for Boeing, which is already building on record output of its smaller 737s, Muilenburg said, noting that suppliers are keeping up with demand.

Asked about engine makers, most of which have faced technical or management problems in recent years, Muilenburg said: “It is certainly something we are keeping an eye on. I will say that despite some of the challenges you have seen out there, our engine partners have been doing well on our commercial programs.”

Boeing’s biggest supplier, General Electric Co (GE.N), is undergoing a corporate makeover after heavy losses, but it is delivering engines on time for the 737 MAX through its CFM venture with Safran of France, Muilenburg said. Airbus has voiced concern about delays in similar CFM engines.

GE, whose stock was the worst performer in the Dow Jones industrial average last year as Boeing led the index higher, is coping well with the development of a new engine for the 777X jet, he said.

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William Roper, assistant secretary of the Air Force for acquisition, said the service focused on starting with a capable base model and improving on it, rather than trying to create the perfect platform.

There is a lot of discipline to spiral development, Roper said, “as opposed to just kicking off a large program where there are multiple difficult things to do, hoping that they will somehow all work out and in the end you’ll get the system that you want.”

James F. “Hondo” Geurts, assistant secretary of the Navy for research, development and acquisition, said the Navy has taken this approach with its submarine programs over the past two decades.

“We have come up with a good submarine, and now we have got a very disciplined, rapid way to quickly get new technology onto those submarines,” he said.

“That’s a way that we have tried to approach it, so you have a good base platform with a lot of resiliency and margins, so you can quickly iterate to wherever the direction goes, because we won’t know what we need on those platforms 10 years from now,” Geurts said.

The Army’s new acquisition reform effort involves the creation of “cross-functional teams” that will focus on rapid development of new platforms in the service’s six new modernization priorities — long-range precision fires; next-generation combat vehicle; future vertical lift; a mobile and expeditionary network; air and missile defense capabilities; and soldier lethality.

The concept is designed to embrace rapid prototyping and involve warfighters at the beginning and keep them engaged throughout the process.

HASC Chairman Mac Thornberry, R-Texas, questioned whether these CFTs will become part of the problem in the future.

“Why aren’t these cross-functional teams that the Army has set up just another layer of bureaucracy?” he asked Bruce Jette, assistant secretary of the Army for acquisition, logistics and technology.

To Jette, the main problem with Army acquisition is there is no “tight linkage with the people that generate the requirement; the technology people who can bring the capabilities to the table that you want to think about as you are looking to the future; and the acquisition people who actually have to get into the field.”

“The idea of the cross-functional teams is to bring that entity together in one place for specific areas of critical importance,” Jette said.

“The biggest issue to me is, I see the value, and I want to see whether there is decay in the value over a long period of time,” he said. “I don’t think there is any intention with the senior leadership to allow that to happen.”

Lawmakers also wanted to know how the services, and Congress, will be able to measure if the acquisitions process improves over time.

“It seems to me that a lot of what we talk about is process changes, and what we ought to be looking at is what is the output,” Thornberry said.

“Because it doesn’t really matter if we write lots of laws and you all … change the regulations — if we don’t have the best our country can produce getting to the warfighter faster, then all of this is for naught.”

In the past, program managers have been given credit for following acquisition processes to the “nth degree,” Jette said.

“We are going to be product-oriented,” he said. “Accountability is not whether you follow the process in detail, but whether or not you generate a product.”

In most cases, the accountability and balance sheets are based on costs within the programs, Roper said.

“What I predict we are going to see greater need for and demand for is to have time-based metrics — tracking things like time to contract, time to complete development, time to field,” he said.

“Time to fail would be a great one, “Roper added, “if we want to quit having these large programs where the failure occurs 10 years after the start.” (Source: Military.com)

07 Mar 18. House Approps Chair Promises Pentagon ‘Flexibility’ On O&M Funds. Legislators will probably loosen some rules on federal spending to help the Pentagon cope with Congress’s failure to pass funding bills until six months into the fiscal year.

House appropriations chairman Rodney Frelinghuysen promised Navy leaders this morning that “we’ve worked out a path forward to provide that degree of flexibility you and the other services are looking for.” Sources familiar with the Senate side predicted Senate appropriators would offer leeway as well.

Frelinghuysen didn’t offer details. When I pressed him after the hearing, the chairman said only that he hoped to allow the maximum flexibility consistent with the appropriators’ oversight responsibilities — which the committee is in deadly earnest about.

We do know, at least, what the Defense Department is asking for. Navy Secretary Richard Spencer told reporters after the hearing that the Pentagon comptroller has asked for relief on “three points”:

loosening the 80:20 rule, which forbids federal agencies from spending more than 20 percent of their funding in the last two months of the fiscal year;
raising the maximum amount allowed for a Below Threshold Reprogramming (BTR), in which the Pentagon reallocates funding without having to get prior approval from Congress;
allowing at least some funds that would normally expire at the end of the fiscal year, September 30th, to “roll over” into fiscal 2019.

“We’ll take what we can get,” Spencer said.

“We’ve been in a pretty solid dialogue with the committees about this,” added the Chief of Naval Operations, Adm. John Richardson, “and they’ve been terrific.”

What kind of latitude will appropriators ultimately offer? One knowledgeable ex-Senate staffer predicted more reprogramming authority and three months leeway to spend 2018 money in fiscal 2019.

This Morning’s Hearing

The exchange between Frelinghuysen and Spencer at the hearing is worth reading in some detail.

“Once we get our bill passed for 2018 you’re going to have a lot of money to deal with,” Frelinghuysen said. “How are you going to spend it in the time that you have between now and October first?”

“We are putting the tools in place to monitor how we’re going to put the resources out,” Spencer replied. “In my weekly meetings with FMC (Financial Management/Comptroller), we are monitoring what we’re doing now on the CR curve and we will step up into 18 when the bill is approved, ready to step to ’19.”

The Navy secretary added, “We would ask — and I totally understand the role of the appropriations committee and I understand the control which is warranted — I would ask if we could find any relief….”

“We are addressing the whole issue of flexibility,” Frelinghuysen interrupted.

“We greatly appreciate it, sir,” said Spencer.

“Obviously the committee has its interests and jurisdiction,” Frelinghuysen said. “Oversight is important. (This defense subcommittee) I know under Ms. Granger’s chairmanship wants to make sure that all those dollars are spent responsibly. So I think we’ve worked out a path forward to provide that degree of flexibility you and the other services are looking for.”

“Outstanding. We welcome that with open arms,” Spencer said. “We have programs racked and stacked. We have our contracting people already gearing up, because it is going to be a task. We will come before you when in fact we see some difficulties.”

How We Got Here

While some appropriations remain available for two or more years after they’ve been enacted, a big chunk of the Pentagon budget is so-called one-year money that must be put on contract (obligated) in the fiscal year it’s appropriated for. That includes pay and benefits for military personnel (MILPERS) and much-needed readiness funds, formally known as Operations & Maintenance (O&M).

One year would normally be enough, but the budget process hasn’t been normal for a decade. Nine fiscal years in a row have started without a proper spending bill. While spending can continue on autopilot at the prior-year levels under what’s called a Continuing Resolution (CR), any changes — adjustments to existing programs, program cancellations, and new starts — have to wait until an appropriations bill is passed.

Though the recent budget deal keeps the government open, the 2018 appropriations bill won’t pass until March 23rd, almost halfway through the fiscal year. Once it passes, federal agencies will have to rush to spend any additional one-year money before it expires on Oct. 1. For the many programs getting budget increases, the challenge will be efficiently spending whatever the extra amount is about the CR level. For new-start programs, however, where the CR level is zero, they’ll have to spend all their one-year money in the next six months.

Playing catch-up this way with millions of taxpayer dollars is a recipe for haste, inefficiency and waste. Ideally, Congress would start passing appropriations on time, but after nine years of CRs, that solution seems unlikely.

“I strongly believe DoD needs some more flexibility in budget execution, not just in FY18 but in all years,” said Bob Hale, Pentagon comptroller for five years under Obama and now a senior advisor at consulting firm Booz Allen Hamilton. “I agree with all three of these proposals (from the administration) but I have priorities among them.”

“Carryover would be my highest priority. DoD needs some ability to carry over funds in the O&M and military personnel accounts. It doesn’t make sense to insist on obligating all these funds in the year appropriated. That is particularly problematic in FY18, with the late appropriation. But in every year the absence of carryover authority leads to the year-end spending spree….I would favor carryover of 5% in each O&M and MILPERS appropriation. But I would take what I could get!”
“Higher BTR (reprogramming) thresholds would also help,” Hale said. Under current law DoD needs prior congressional approval to move more than $10 million in a given military personnel account, and to move more than $15 million in an O&M account — a drop in the bucket when those accounts “are often in the tens of billions.”
“For FY18, with the late appropriation, waiving the 80/20 rule would make sense too,” he added.

“How receptive have appropriators been to ideas like this? Very unreceptive,” Hale said. “For example, in 2013 I tried to get carryover authority of five percent for O&M and MILPERS. One chamber approved 1 percent, the other would not even go with that. So nothing happened.”

But that is beginning to change.

Growing Support

Last year, after accidents that killed 17 sailors, Navy Secretary Spencer’s independent Strategic Readiness Review proposed extending the time readiness money is available. Instead of “use it or lose it” in the fiscal year for which it’s appropriated, the SRR said, let the Navy spend Operations & Maintenance either for a full year after the date the appropriations bill is enacted — which would automatically compensate for delays on the Hill– or for a year after the year of enactment.

In mid-February, Army Secretary Mark Esper told reporters he’d been asking members of Congress to make Operations & Maintenance two-year money, while House defense appropriations chair Kay Granger told our colleagues at Defense News she wanted to fix the “artificial deadline” of Sept. 30.

Last Monday, Senate seapower chairman Roger Wicker proposed a bill to make O&M for the Navy (only) two-year money. (See our exclusive interview here).

Yesterday, at the McAleese/Credit Suisse defense conference here in Washington, several legislators and officials expressed support for some flexibility. Particularly popular was the idea of giving the Pentagon an extra day to spend the money for each day Congress was late in appropriating it. Essentially, that’s the same “a year from the date of appropriation” rule proposed by the Navy’s SSR. We heard this idea from both Rep. Rob Wittman, the House seapower chairman and former readiness subcommittee chairman, and Lt. Gen. John Murray, the Army’s deputy chief of staff for resources (G-8). (Murray emphasized he was expressing his own thoughts and not Army policy, although his statement certainly lines up with Secretary Esper’s).

Air Force Secretary Heather Wilson was less specific but generally supportive. “Give us the flexibility we need to execute smartly,” she said, “because you don’t want a contracting officer signing the contract because he’s got to meet some deadline (on) the 30th of September.”

Meanwhile, House airland subcommittee chairman Mike Turner has introduced the “It’s About Time Act” that would “solve” the problem by pushing the start of the fiscal year back four months, from October 1st to January 1st. The idea produced a snort of laughter from at least one audience member near me when Turner proposed it at McAleese. Like getting your credit card company to change your monthly due date, this seems like the kind of short-term fix that would help, at most, once. (Source: Breaking Defense.com)

07 Mar 18. Some ‘hiccups’ with engine design, but B-21 on track, Wittman says. Despite a series of early production “hiccups” with the engines and wings, including an issue with air flow, the B-21 Raider bomber aircraft is largely on track, according to the chairman of the House Armed Services Seapower and Projection Forces Subcommittee.

Rep. Rob Wittman, R-Va., said he was largely pleased with the work prime contractor Northrop Grumman has been doing on the bomber program, praising in particular how the company has worked to integrate its subcontractors together to find solutions to early design problems. But he acknowledged there have been a few challenges that have popped up.

“This is an extraordinary, complex aircraft,” Wittman, who has oversight of the B-21, told reporters after a speech at the McAleese/Credit Suisse defense conference held in Washington on Tuesday. “The issue is not that you have these uncertainties. The issue is how you address them.”

Wittman’s comments are notable given the intense secrecy surrounding the B-21. The service plans to buy at least 100 Raiders at a price of about $550m, in 2010 dollars, per copy. The engineering and manufacturing development phase is being carried out under a separate, cost-plus contract that is estimated to amount to about $21.4bn.

Wittman highlighted several times the challenge of pushing air through the B-21’s engines. “This is a very, very different design as far as airflow, and there have been some design challenges there,” he said.

“Pratt and Whitney says one thing; if the exhaust, the ducting contractor says another thing and says, ‘There’s only so much air we can move through there,’ and Pratt & Whitney says, ‘No, we need a certain amount of air to go through the front of the engine,’ then the question is: How do you do that?” Wittman added.

“Do you split [the requirements] between the two? Does Pratt & Whitney say: ‘Well, we can change some of the cowling [the cover on the engine] on the surface face there to be able to do that,’ ” he wondered, noting this as something that could impact the B-21’s low-observable characteristics.

“It’s not just the engine, but it’s the ducting on the engine, too. I think all those things are elements that you would normally expect in an aircraft that’s new, that takes a concept from B-2, refines and uses it on this platform.”

Richard Aboulafia, an analyst with the Teal Group, noted widespread speculation that the B-21 will be a twin-engine, rather than a quad-engine, plane. If that’s the case, early tests may have shown airflow issues that could require the Air Force and Northrop to make tough decisions on trade-offs because “turbines are hot and like large apertures ― two things that stealth hates.”

The B-2 uses four F118 engines, which produce about 17,000 pounds of thrust. Pratt & Whitney’s F135 engine, used in the F-35 Joint Strike Fighter and generally assumed to be the basis for the engines used in the B-21, can produce up to 43,000 pounds of thrust, which in turn requires greater air intake. Hence, the cowling for the B-21 engines may require trade-offs between the air coming in and the stealth characteristics.

For Aboulafia, this is ”one of the most complicated parts of designing a stealth plane because there are many variables, but two of the very biggest are stealth and range.”

“The turbine thing speaks to a possible need for compromise. It’s not a deal-killer, but could that impact range? Sure. Range or stealth: Which do you want to compromise on? Or find some permutation therein,” he said. “That’s the real black art of aircraft design ― the trade-offs.”

Other issues

More broadly, Northrop has been challenged to hire “enough engineers” to make sure the design stays on track, Wittman said, adding that the company is working to get an “Iron Bird” mock-up of the B-21 up and running — something that would serve as a physical test bed for some of the design and production elements.

The congressman also indicated there have been some “snags” with designing the wing for the B-21. It is believed Spirit AeroSystems is doing some of the work on the wing in their Wichita, Kansas, facility.

A spokesman for Northrop referred questions to the Air Force, while a spokesman for Pratt & Whitney declined to comment other than to say the company was “proud” of its work on the program.

“The Air Force remains confident in the B-21’s progress and in delivering this new capability as planned in the mid-2020s,” Air Force spokeswoman Ann Stefanek said. “While we cannot speak to program specifics, the Air Force Rapid Capabilities Office is actively working with the contractor to ensure the program’s success.”

Other subcontractors for the Raider include BAE Systems, working out of Nashua, New Hampshire; GKN Aerospace in St. Louis, Missouri; Janicki Industries in Sedro-Woolley, Washington; Orbital ATK in Clearfield, Utah, and Dayton, Ohio; and Rockwell Collins in Cedar Rapids, Iowa.

Though perhaps minor issues, they are notable because part of Northrop’s plan to get the plane from contract to initial operational capability in about 10 years involves an admittedly fast-moving schedule, one the Air Force has raised concerns about. And part of that strategy for getting the bomber out on time involved a significant amount of subsystem work.

If those advanced components are having integration issues, even minor ones, it could force lag into an already tight program-production window, at a time when the Air Force is desperate to get the Raider fielded so it can begin retiring the B-1 and B-2 bomber fleets.

“Integration is a problem,” Aboulafia said. “You can save a lot of time with doing subsystems in advance, but integration is always going to complicate things here and there. It doesn’t make it a waste of time to do these designs in advance, but integrating, that’s another issue.”

Overall, Wittman praised Northrop for sticking to an “aggressive” schedule and said the company has been very smart about identifying potential issues early and then working to smooth them out before true production begins.

“I have been impressed with the viewpoint that Northrop has with this, with their willingness to address things in a very timely way to be on top of this,” he said at the end of his remarks. “It is refreshing to see they are tremendously serious about making this happen and that they are holding [everyone on the B-21 team] to this high standard.” (Source: Defense News)

08 Mar 18. Boeing air tanker delivery likely delayed again – U.S. Air Force. The U.S. Air Force said the first delivery of KC-46 aerial refuelling tankers from Boeing Co, scheduled for the second quarter of 2018, would more likely occur late in the year.

“This assessment is based on known risks and predicted impacts associated with airworthiness certifications and slower than expected flight test execution,” the Air Force said in a statement on Tuesday.

The potential delays will not result in additional programme cost to the taxpayer, the statement said.

Boeing previously missed a forecast that the aircraft would be delivered last year.

In a statement on Wednesday, Boeing said: “There is always risk on any development program, we’re relying on our partnership with the Air Force to help mitigate those risks, complete KC-46 testing and deliver 18 game-changing tankers to them as quickly as possible.”

The world’s biggest maker of jetliners said it had discussed a range of delivery dates with the Air Force.

In the third quarter of 2017, the company took a $329m (236.7m pounds) charge for its KC-46 aerial refuelling tanker programme. Charges related to the programme have reduced profit by $1.9bn after tax.

Boeing expects to build a substantial business from the tanker, which is based on its twin-aisle 767 commercial jet. Boeing plans to deliver 179 tankers to the U.S. Air Force and expects to sell about 400 in total worldwide. (Source: Reuters)

06 Mar 18. Stealth features responsible for half of F-35 defects, Lockheed program head states. As the production rate of Lockheed Martin’s F-35 joint strike fighter goes up, the company is wrestling with quality escapes involving the jet’s low observability features, which now amount to about half of all defects on the aircraft, the company’s vice president of the program revealed Monday.

Last week, Vice Adm. Mat Winter, the head of the government’s F-35 Joint Program Office, slammed Lockheed for what he sees as its too-slow progress on eliminating so-called quality escapes — errors made by Lockheed’s workforce that could include drilling holes that are too big or installing a dinged part.

While those errors are minor, the rework done to bring the plane up to requirements is driving up the amount of money and time spent producing an airplane, Winter said.

Speaking to reporters at Lockheed’s media day on Monday, Jeff Babione acknowledged that low observability, or LO, capabilities in particular are posing a challenge to the company.

In part, that’s because they are so unique and because production is ramping up quickly.

“That’s something that no other weapon system since the F-22 has had to do, and the F-22 never did it at the rates that we’re trying to do it. Once we get a handle on that, you’re going to see a dramatic reduction in the quality escapes that are made around the LO system,” he said.

In order to reduce the F-35’s signature, the panels making up its airframe must be precisely aligned. As each panel goes through the production process — build, then installation, then joining to other panels — small deviations can make it very difficult to meet standards, even for an experienced mechanic.

“It’s not a human problem; that’s just the result of our ability. We’re approaching the limits of our ability to build some of these things from precise-enough technology,” Babione said.

Still, he allowed that some human error remains.

“On the other hand, we inadvertently scratch the coating system, and we have to repaint it. Or when the mechanics spray the airplane [with LO coating], not all of it is robotically sprayed. There’s some overspray, and they have to go clean that,” he said.

Babione called decreasing the number of manufacturing defects on the F-35 a “huge, huge priority,” and for good reason. The company has had a couple of high-profile quality escape issues that have grounded operational F-35s, or had the potential to set back the number of planned aircraft deliveries.

Most recently, in September, the Defense Department temporarily halted F-35 deliveries for a month after it found Lockheed had not applied a primer in certain fastener holes, as per requirements. The error, though minor, needed to be corrected to prevent future corrosion on the aircraft and could have kept the company from delivering all planned 66 F-35s last year.

In 2016, the Air Force grounded 15 F-35s after coolant tube insulation installed in the wings of the jet was found to be breaking down. Ultimately, Lockheed determined that one of its suppliers had delivered the wrong insulation.

Babione said company is taking a two-pronged approach to cutting down on defects.

“Quality starts at the very lowest supplier and what are we doing is to ensure that quality is coming up to the supply chain as good as it can get,” he said. That means blocking faulty parts from ever getting to Lockheed’s production line in Fort Worth to “stop the quality issues from coming up in the first place.”

But to cut down the number of LO-related quality escapes, Lockheed is also taking steps to make it easier for workers to build the aircraft, whether through increased training or improved practices, he said without elaborating.

For the F-35 Joint Program Office, reducing the rework on the aircraft will help it close in on the “true cost” of the aircraft, allowing the government to push Lockheed’s price per aircraft as low as possible, Winter said last week at a roundtable with reporters.

It’s also seen as critical for keeping Lockheed’s delivery schedule as planned, with no future delays as production ramps up from 66 jets last year to about 90 this year and beyond, he said.

“I don’t have concerns that we’ll be able to keep having aircraft coming down the line and putting them together and delivering them. We’ll be able to do that,” he said. “But I have concerns that we might not be able to do it at the rate that our war fighter has asked us to do it.”

(Source: glstrade.com/NDIA)

06 Mar 18. China Loves DoD Acquisition Culture, Says R&D Chief Griffin. Michael Griffin is a man in a hurry. The former head of NASA and now the Pentagon’s new undersecretary for research and engineering, Griffin used his first public comments since starting his job last month to deliver a scathing critique of how the military develops and buys equipment today, saying old rules and regulations “are going to have to take a backseat” in the face of the United States doing everything it can to keep ahead of China and Russia.

At the top of his list is development of hypersonic missiles.

“I plan to create new budget lines that may not yet exist,” Griffin told a defense industry crowd at the McAleese/Credit Suisse summit here. “The United States is not yet doing all that we need to do to respond to hypersonic missile threats,” he said. “I did not take this job to reach parity with adversaries, I want to make them worry about catching up with us again. Any American, any ally or partner that we have who doesn’t see it that way, I don’t have time for you.“

It’s not clear how Griffin will add new lines to the current budget, already packed with new modernization programs and bristling with refit and sustainment dollars that had been neglected in recent years. But he said he’s working on moving things around in the 2019 budget which was released last month. Congress may have to play a role, depending on how and how much Griffin wants to move things around.

There is already $257m on the books for DARPA and the Air Force to conduct research on hypersonic missiles, a whopping 136 percent increase over the 2017 budget. Current plans call for an “operational prototype” due in 2023.

But it’s not clear that is fast enough for Griffin. Equally unclear is what congressional appropriators will have to say about making more room in an already crowded budget. But as both Pentagon and congressional leaders have said in recent months, there is an increasing gap between American capabilities and those of its closest peer competitors, Russia and China.

The Chinese have conducted 20 percent more hypersonic missile technology tests than the United States in recent years. Just last week, Russian President Vladimir Putin boated that his country had developed a hypersonic cruise missile, which he claimed is now undergoing trials. The announcement increased fears in Washington that the Americans had fallen behind. Speaking to reporters in January, vice chairman of the Joint Chiefs Gen. Paul Selva admitted “we have lost our technological advantage in hypersonics.”

That gap, Griffin claimed, creates instability. If the Chinese started throwing hypersonic missiles at American bases in the Pacific and sinking carrier strike groups, “our only response is to let them have their way or go nuclear. That should be an unacceptable situation for the United States — it invites bad behavior by adversaries.”

All of which is to say that the Pentagon is looking toward Beijing as its primary challenge in the near-term. Air Force Secretary Heather Wilson crystallized this last month when she said that her service focuses “primarily on China in the Air Force because they are modernizing much more quickly than Russia, so for us that is the pacing threat.”

Griffin picked up the theme, adding that given years of failures in the Pentagon’s acquisitions system, “the Chinese love our acquisition system. They are the biggest fans of our acquisition there possibly could be.”

On Monday, Beijing announced an 8 percent military budget increase for 2018, and Griffin observed that “China has set itself on the course of becoming our primary adversary….They don’t make a big show out of it, they just work quietly. They are pouring hundreds of billions of dollars into it.”

Conversely, the decades-long postwar American technological advantage has been slipping. “Our generation has been busy wasting that away,” Griffin said. “We have deficits. We have entitlements. We have wars in the Middle East…. We thought we would never have another [peer] adversary.”

(Source: Breaking Defense.com)

06 Mar 18. AFSPC Deputy & SMC Chief Call For Requirements Changes. The head of Space fnd Missile Systems Center hinted at what he calls a re-architecting of what many believe to be one of the military’s most stovepiped organizations, calling for faster acquisition and major changes to how the Pentagon decides what weapons it’s going to buy.

“Some of you may have heard the US has lost its edge in space,” Air Force Lt. Gen. John Thompson, head of SMC, said at the AFCEA Rocky Mountain Cyberspace Symposium here. He didn’t think that’s the case –yet — but he told the audience that “we’ve got to make sure the adversary becomes the pursued.” He illustrated his point with a short clip of actor Jeff Goldblum being chased by a T-Rex in one of the Jurassic Park movies. Goldblum turns the tables by slamming on his brakes and coming up behind the somewhat dim-witted dinosaur and chases him.

“Our adversaries are much closer than we would like them to be,” Thompson conceded.

To help keep Russia and China — whom he did not mention by name — at a safe distance, the SMC leader called for changes to his organization. Instead of every program at SMC “having its own standards,” the builder of America’s military satellites and overseer of launch capabilities should “have a more cross-cutting environment.”

Famously, SMC is ruled by colonels who head System Program Offices that oversee GPS, communications, missile warning and other capabilities. For those who have tried to get comments from SMC over the last decade, the tight grip of the SPOs is often cited as a major factor in the command’s inability to generate comments in a timely manner. To their credit, the colonels are all highly skilled and possess knowledge the Russians and Chinese would love to get their hands on to improve their satellites, sensors and launch systems.

Air Force Secretary Heather Wilson said recently that SMC would be reorganized. In a conversation after his remarks, Thompson made clear he really doesn’t want to reorganize — which in a bureaucracy almost always creates enormous resistance — so much as change the way the existing organization works.

Thompson spent more time talking about changing how requirements are created and how that needs to change. Stressing that they were his personal opinions, he said much more emphasis needs to be placed on a capability-based system, not one based on threat. It’s intriguing he said this, as the Pentagon leadership for most of the last four years — regardless of president — has stressed that threats should drive requirements and show why the requirements process must be sped up.

“DoD has succumbed to building all our requirements solely on the basis of threat. It’s easy to build weapons systems based on exactly what you believe the threat is able to do. That doesn’t shoot high enough in my view,” Thompson said. “To me it is far more aggressive and generates far more payoff to do our requirements build based on what our capabilities are.”

Maj. Gen. Robert Skinner, the deputy head of Air Force Space Command, told me that he agrees capabilities need to be an important part of the mix — after noting that Thompson was staring at him from the audience — but stressed that “we always have to keep the threat in mind.” Skinner placed more emphasis on simplifying requirements, pointing to the B-21 bomber. The Key Performance Parameters (known as, yes, KPPs) “are on one slide” and the entire set of requirements for the system occupies a tiny 10 to 13 pages.

Keeping those requirements and KPPs limited and focused gives industry much more flexibility to “let industry innovate” and provide the military with solutions that may cost less, provide capabilities the military might not know about yet and balance the costs and benefits of the solutions it offers. (Source: Breaking Defense.com)

07 Mar 18. US Marine Corps plans to simultaneously buy aircraft, modernise depots with budget boost. Key Points:

The USMC plans to use additional budget funds to both buy aircraft and modernise its fleet
A key officer said it was previously forced to sacrifice readiness to buy aircraft

The US Marine Corps (USMC) plans to simultaneously buy aircraft and modernise its depots, which it previously was unable to do, thanks to extra money in its fiscal year (FY) 2019 budget request, according to a key officer.

USMC Deputy Commandant for Aviation Lieutenant General Steven Rudder told a Senate panel on 6 March that the marines previously underfunded readiness accounts to buy new aircraft, of which, he said, it was not buying enough. (Source: IHS Jane’s)

06 Mar 18. US Navy to scrap scores of fighter jets from its inventory. The U.S. Navy is moving to scrap almost 140 older Hornet fighters from its inventory and accelerate the transition to newer Super Hornet models in a bid to cut the costs of maintaining old aircraft that have seen hard use over two decades of continuous combat operations.

The Navy projects it will recoup the better part of a billion dollars over the next five years, money used to fund other readiness initiatives both in the beleaguered Naval Aviation Enterprise and elsewhere.

The plan, hashed out in June, is to strike F/A-18 “A” through “D” models for a total of 136 Hornets, 66 of which will be gone by the end of 2020.

“Two strike board reviews with Fleet, CNO, and NAVAIR personnel determined that 136 aircraft could be authorized for strike because their effective life was consumed and would require significant repair,” said Lt. Lauren Chatmas, a Navy spokeswoman. “The Navy will strike these aircraft over the course of fiscal years 2017 and 2020.”

The Navy thinks this is an opportunity to get some usable spare parts for the in-service jets and help the Marine Corps by sending it the best of the remaining aircraft.

“The decision was based upon readiness risk of existing F/A-18 A-D inventory, long term operational costs versus gain in capability, and the potential to improve USMC readiness by transferring best of breed aircraft to the USMC,” Chatmas said.

The plan recoups about $124m in 2019 and $852m across the five-year budget projection, Chatmas said. Four squadrons flying legacy Hornets will transition to the newer versions between now and the end of 2019, she said.

The Navy has been buying batches of Hornets in recent years to replace the ones that are at the end of their service lives. The service has been slow to buy its F-35C, citing development issues.

The Navy’s flight demonstration team, the Blue Angels, will have to sit tight with its legacy Hornets until there are enough “E” or “F” versions available to spare, Chatmas said. (Source: News Now/Defense News)

06 Mar 18. Speedier Acquisition Needed to Stay Competitive, Defense Official Says. The Defense Department needs to speed its acquisition processes and allow decisions at a lower level if it wants to stay competitive, the undersecretary of defense for research and engineering said today.

“The Chinese love our acquisition system, they are the biggest fans of our acquisition system that there could possibly be; they certainly don’t want us to change it,” Michael D. Griffin said here at the ninth Defense Programs conference, hosted by McAleese and Associates and Credit Suisse.

Griffin pointed out DoD takes about 16.5 years to go from statement of need to initial operating capability. The U.S. used to operate in the time frame that China now operates in — two to three years, he said.

The Chinese are “pouring hundreds of billions of dollars into these enterprises,” Griffin said. China, he continued, is “setting about the task of becoming a global power and challenging our power, which has been largely uncontested for seven decades, since the end of World War II.”

Unless the United States acts, the undersecretary said, China will get its way.

Changing Landscape Demands Changes

What is slowing the processes for DoD, Griffin said, is the need to be perfect every time.

Replacing broken hardware is inexpensive, he said, explaining the greater costs come from all the time, the checks and balances, the analysis, and all of the work to ensure you never break a piece of hardware.

“This nation, for decades following World War II evinced a capability and an overwhelming superiority that simply deterred our primary adversary and prevented the growth and instantiation of any secondary or tertiary adversaries,” the undersecretary said.

To put it simply, Griffin said, the U.S. was on top, “So we could afford to take long periods of time to do things and spend a lot of money.”

After the collapse of the Soviet Union, the United States thought it would never have another adversary, he pointed out. That thinking contributed what he described as an “unhealthily lackadaisical state of mind.”

The recently released National Defense Strategy points out these false assumptions the U.S. has been making, the undersecretary said.

Speeding Up Processes

DoD needs to return to the point where decisions can be made at a lower level and processes move forward with speed, Griffin explained. Besides, if you are wrong, physics will let you know, he said.

The United States got to where it is through its technological superiority and being able to “bring stuff to the fight, to get stuff deployed [and] to do it in a rapid, robust fashion,” the undersecretary said.

The department can learn from mistakes instead of striving for perfection, Griffin said. DoD does get it right, it just takes an enormous amount of time and money to get to that point, he said.

“This is a country that knew how to do things quickly and reasonably well,” the undersecretary said. (Follow Lisa Ferdinando on Twitter: @FerdinandoDoD)

06 Mar 18. Vice Chairman Highlights Importance of Nuclear Deterrence. The recent Nuclear Posture Review ensures the United States can match any nuclear threat, including that of a low-yield nuclear weapon, the vice chairman of the Joint Chiefs of Staff said here today.

“There is compelling evidence that at least one of our potential competitors in this space believes they can get away with striking us with a low-yield weapon,” Air Force Gen. Paul J. Selva said. “We cannot allow that perception to persist.”

The review makes it clear that the United States will respond in kind to any nuclear threat, Selva said at the ninth annual Defense Programs conference hosted by McAleese and Associates and Credit Suisse.

Safe, Reliable, Dependable Arsenal

The vice chairman underscored that the goal of the NPR is to maintain a safe, reliable, dependable and secure nuclear arsenal. “We reviewed the world as it is, not the world as we wished it could be,” Selva said.

The NPR projected what capabilities might be useful to supplement the existing delivery systems in the nuclear triad to “raise the bar for all adversaries who might contemplate use of nuclear weapons against the United States or our allies,” he explained.

The new capabilities are the sea-launched cruise missile and a low-yield nuclear weapon that could be delivered from a submarine platform, Selva said. “Don’t mistake the discussion of new capabilities for growth in the nuclear arsenal,” he added, and please don’t fall in the trap of having the conversation that low-yield lowers the threshold for the use of nuclear weapons,” he said.

Selva pointed out the Nuclear Non-Proliferation Treaty came into force 48 years ago yesterday. Fewer than 10 countries possess nuclear weapons or the capabilities to field them, he noted.

“We’ve actually created a safer world,” he said. “That’s not to say that we’re free of the threat from nuclear weapons.”

Setting the ‘Vector’ for DoD

The Nuclear Posture Review, which was released Feb. 2, is nested in the other new national security strategies: the National Security Strategy, National Defense Strategy and a National Military Strategy, Selva explained.

“All of those set a vector for where we want to move the department, and they are all nested in how we built the [fiscal year 2019] budget request,” he said.

Honoring Those Who Serve

The nuclear strategy and acquiring the best and most advanced technologies are vital elements as the United States seeks to apply its power and influence around the world, Selva told the conference audience. The United States must continue to build strong alliances, and another important aspect in national security is to maintain the capability and capacity to deploy forces anywhere in the world and project American power where necessary to defend U.S. interests, he said.

“If there is no other reason to bring new technologies and capabilities into our force today,” Selva said, “it’s to make damn sure that no asymmetry from an outside force can prevent us from projecting American force and American power and American influence at the point in place of our choosing.”

The general commended the men and women who serve, saying they make up less than 1 percent of the population and are the “secret sauce” to the successes of the Defense Department.

“They’re a unique group of young men and women,” he said. “What we owe them is good leadership, sound decision tools, the technology that matters on the future battle space, the tools and the training to do the work that we ask them to do.” (Follow Lisa Ferdinando on Twitter: @FerdinandoDoD)

06 Mar 18. Africom Continues Efforts for Stable, Secure Continent. U.S. Africa Command’s commander said today that his command will continue its strategy of “by, with and through” partner nations on the continent.

Marine Corps Gen. Thomas D. Waldhauser spoke to the House Armed Services Committee about the investigation into the incident in Niger in October that claimed the lives of four Army Special Forces troops. He said he has completed his review of the investigation and it is with Defense Secretary James N. Mattis.

“Once the secretary completes his review and the families have been briefed, I intend to provide a comprehensive and detailed account of the investigation to you as soon as possible,” Waldhauser told the committee.

Africom is adjusting its strategy on the continent to comply with Mattis’ direction stemming from the National Defense Strategy. The command partners with nations to strengthen security forces to counter transnational threats. It also stands ready to respond to crises on the continent and to promote regional stability, security and prosperity.

“Very few — if any — of the challenges on the continent can be resolved through the use of military force,” Waldhauser told the committee. “Africom’s first strategic tenet stresses the military activities are designed to support and enable U.S. diplomatic and development efforts.”

The command aims to give national leaders the time and space they need to establish firm governance, he said, which will give the nations the stability to grow their economies.

Pressuring Terror Groups

The goal is for national defense forces to provide for their own security, the general said. While African nations have tremendous potential, they are often beset by instability and exploitation stemming from the disruption caused by violent extremist organizations, he said. “These groups take advantage of vast ungoverned spaces and recruit from populations lacking economic opportunities,” Waldhauser explained.

The groups operating on the continent are all too familiar: al-Qaida, the Islamic State of Iraq and Syria, Boko Haram and al-Shabab. Smaller groups operate in other areas.

The command approaches these threats by keeping pressure on the terror networks in order to mitigate their destabilizing influences.

Waldhauser said his staff is working changes in the strategy and the command’s campaign plan to take into account the changes in the National Security Strategy and in the operating environment.

The general gave the committee a tour of the continent from Africom’s perspective. In East Africa, the command is part of the international commitment to help Somalis to implement their national security architecture. Al-Shabab remains a threat to Somalia and the region, as reflected by the bombing of a hotel in Mogadishu on Oct. 14, 2017, that killed more than 500 people. The challenges to Somalia are enormous, yet the government — also working with the African Union and European Union — continues to make progress, Waldhauser said.

In North Africa, Libya remains politically and militarily divided with leaders and factions vying for power ahead of potential elections later this year. “As part of an international effort, Africom supports diplomatic objectives for political reconciliation. Government of National Accord and maintain pressure on ISIS, and al-Qaida networks,” he said.

The Sahel is a wide swath of the continent that bridges the Sahara and the savannah. The region has tremendous problems that international terror networks capitalize on. Africom supports international efforts in the Western Sahel and in the nearby Lake Chad region of West Africa. The command works with the G5 countries of the region — Burkina Faso, Chad, Mali, Niger and Mauritania — to provide training, advice and assistance.

Africom also works with a multinational joint task force consisting of Nigeria, Cameroon, Benin, Chad and Niger in order to contain violent extremism and to help the nations secure their borders from the Boko Haram terror group.

Continental Concerns

“Violent extremist organizations are a huge challenge to African nations,” Waldhauser said. “At the present time, [the terror networks] really do not have the capability to conduct operations, for example, in the United States. But they certainly aspire to do that”.

Africom looks to forestall those aspirations to the point that local security forces can handle the treats. “We’re trying to prevent something from happening before it does,” the general said.

There is a strong desire for U.S. leadership and involvement on the continent. There are 1.2bn people living in Africa today, a figure that is due to increase to 2.4bn by 2050. “That’s one in four people on the planet [living] on the African continent,” Waldhauser said. “Any type of situation — whether it be humanitarian or security — the scale of potential problems there is really enormous. If there were outbreaks of some sort of disease — Ebola, the HIV virus continues to spread — the numbers we would talk about would be significant.”

He noted that U.N. statistics indicate that half the population of Somalia is “food insecure.” Last year, that was six million people. This year it is around 5 million.

“These are numbers of a scale and scope that if security issues or humanitarian issues were left unchecked or if we didn’t participate in trying to contain those, we would have significant challenges of a large scale for a long time,” the general said. (Follow Jim Garamone on Twitter: @GaramoneDODNews)

05 Mar 18. Lockheed CEO plays down impact of Trump’s steel tariff. Lockheed Martin’s chief executive downplayed the impact of wide-ranging global tariffs on steel and aluminum imports into the United States, telling reporters Monday that she was still studying what the decision would mean for the company. Last week, President Donald Trump announced plans to set a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports. On Monday, he tweeted that the policy could be reversed for Canadian and Mexican exports if the North American Free Trade Agreement, or NAFTA, is reworked to be more favorable to the United States.

Hewson said that, at this point, she hadn’t heard any backlash from Lockheed’s international supply chain or customer base. The company, which relies on sales to foreign allies, is wary the issue could jostle those relationships or lead to marketplace retaliation, particularly if Trump forgoes exceptions for certain U.S. allies.

“There are a lot of questions about the specifics and nervousness that goes with that because it can go in any number of different ways,” said Lockheed’s Robert Rangel, senior vice president of government relations.

Lockheed’s relationship with the president has been complicated. Before coming into office, Trump rebuked the cost of the F-35 Joint Strike Fighter and positioned Boeing’s Super Hornet as a possible alternative. Once he assumed the presidency, Trump involved himself directly in F-35 contract negotiations, having meetings directly with the government’s program head and Hewson to discuss the price of the aircraft.

Since a deal on the 10th batch of jets was finalized, Trump has eased off the F-35 program, praising the aircraft during a September speech at Andrews Air Force Base, Maryland. Meanwhile, Hewson has been effusive in her praise of Trump, calling his criticisms fair and crediting him for reducing the price of the aircraft.

Hewson on Monday struck a similarly conciliatory tone. Asked what advice she would present to Trump on the tarriffs, she sounded a supportive note in favor of the commander in chief’s ongoing economic policies.

“I would just say for him to continue what the administration is doing, and that’s focusing on competition and fair trade globally,” she said.

“It’s really important for us as a nation to continue to look at how we can continue to be competitive around the world, but at the same time, importantly, that we are also focused on our strategic partners and allies around the world — that we can continue to provide the global security solutions that we all need to work together to address the security challenges.”

Trump’s tariffs

The president’s decision to set steep tariffs on steel and aluminum is meant to protect national security and economic security, White House trade adviser Peter Navarro said during a CNN appearance Sunday.

“The president was quite clear. We can’t have a country that can defend itself and prosper without an aluminum and steel industry,” said Navarro, the director of the White House Office of Trade and Manufacturing Policy.

The White House expects to implement the tariffs late next week or the week after, going “through all the legal hoops,” he said.

But as fears of a trade war shake the global economy, defense and aerospace industry advocates argue the tariffs will harm national security, not help it.

Navarro said there would be no country exclusions, overruling the Pentagon recommendation for targeted tariffs to avoid angering allies who are needed for other diplomatic and national security reasons, such as Canada and South Korea.

“I understand what the Pentagon said,” Navarro said. “The president understands it very clearly. He heard all sides. And he made a … courageous, tough decision, and I think it’s the right decision.”

While the response of Lockheed’s CEO was relatively restrained, other industry heavyweights have rang alarm bells about the potential impact of the tariffs. Aerospace Industries Association CEO Eric Fanning said in a CNBC interview days earlier he was concerned the tariffs might provoke marketplace retaliation.

“I’m more concerned with the negative effects this will have on the national security sector,” Fanning said. “We’re always worried about pricing throughout our supply chain. This is going to impact companies big and small in the aerospace and defense world.”

AIA argues the sector needs global sources of aluminum and steel to remain competitive, and that there will be a cascading impact on the cost of parts and components.

“Before issuing tariffs or quotas on aluminum and steel, Trump should consider the impacts of increased costs, decreased supply and disruption to the supply chain on a successful industry that is a key contributor to the U.S. economy,” AIA’s Remy Nathan said in a recent op-ed. “Our country’s history of imposing tariffs on raw materials like steel is not a good one.” (Source: Defense News)

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10 Mar 18. Congress accuses Modi government of scamming Rs 12,632 crore through Rafale deal. The Indian National Congress on Friday accused the central government of causing a loss of Rs 12,632 crore to the national treasury by purchasing the jets at higher rates. Congress leaders Ghulam Nabi Azad and Randeep Surjewala claimed that 36 Rafale jets were sold to India at 7.5bn Euros in 2016, 48 jets were sold to Qatar and Egypt at 7.9bn Euros in 2015. The party members pointed out the fact that Dassault Aviation sold each jet to India at Rs 351 crore higher than those sold to Qatar and Egypt 11 months ago (Image for representation)

While quoting facts from the annual report of Dassault Aviation, makers of the fighter aircraft, the Indian National Congress on Friday accused the central government of causing a loss of Rs 12,632 crore to the national treasury by purchasing the jets at higher rates. The party also thrashed Modi government to compromise with national security and causing a loss of over thousands of crore to the taxpayers with its deal to buy 36 French Rafale jets. Addressing a joint press conference, Congress leaders Ghulam Nabi Azad and Randeep Surjewala claimed that 36 Rafale jets were sold to India at 7.5bn Euros in 2016, 48 jets were sold to Qatar and Egypt at 7.9bn Euros in 2015.

The party members pointed out the fact that Dassault Aviation sold each jet to India at Rs 351 crore higher than those sold to Qatar and Egypt 11 months ago. Accusing the Prime Minister Narendra Modi of adopting complete ambiguity over the deal of Rafale fighter aircraft, Nabi Azad said that it would have been better for the government to cancel the deal besides of accepting it. He also declared that the Saffron party could have saved Rs 41, 212 crore by cancelling the deal struck during UPA exemption from power for 126 Rafale jets. He questioned Modi government that why it did not buy all the 126 jets for which the international bids were called for. (Source: News Now/newsx.com)

09 Mar 18. Ballistic Missile Defense Remains Focal Point of Juniper Cobra 2018. Juniper Cobra is a U.S. European Command bilateral exercise.

The exercise is part of a routine training cycle, designed to improve coordination between the U.S. forces and the Israel Defense Force, through a variety of computer-assisted simulations that range from rocket threats to crisis resupply, foreign disaster response and foreign humanitarian assistance.

However, the focal point of Juniper Cobra remains clear — to provide integrated ballistic missile defense to counter regional threats to Israel and maintaining U.S. support of Israel’s qualitative military edge.

Defense Partnership

“We are proud to welcome our friends and partners,” said Brig. Gen. Zvika Haimovich, Israeli aerial defense commander. “Together we will prepare ourselves to meet the challenges of the future.”

The U.S. Army has deployed the MIM-104 Patriot air defense missiles – a surface-to-air missile system and the Army’s primary high-to-medium air defense system — to work in tandem with the IDF’s Iron Dome air defense missiles in support of this premier training event.

The Patriot system is designed to provide multitier theater defense against adversary missile threats using peer-to-peer engagement coordination, early warning track data, and battle management situational awareness.

Air Defense System

Similarly, the Iron Dome is the IDF’s mobile all-weather air defense system designed to intercept and destroy regional short-range rockets directed at populated areas.

Each Iron Dome battery boasts a 90 percent intercept success rate. When paired with the Patroit system, they provide Israel with a near impenetrable layer of defense against attack.

“We’re training to answer the call,” said U.S. Air Force Lt. Gen. Richard Clark, Joint Task Force Israel commander. “The call to defend Israel.”

Operating cohesively, U.S. and IDF forces will train over the next two weeks during Juniper Cobra to increase regional security, stability and military readiness. (Source: US DoD)

09 Mar 18. Fifth-generation Fighters Officially Move Into Next Phases. In recent weeks both Russia and the People’s Republic of China (PRC) announced that their fifth-generation fighter programs had advanced in their steps to enter service. The two aircraft—the Sukhoi Su-57 and the Chengdu J-20—have been flying for several years and have completed programs of test and validation schedules. However, both platforms are still lacking series production, next-generation engines and other on-board sub-systems that would make them complete fifth-generation aircraft.

At present all Su-57 aircraft are powered by the Saturn/Lyulka 117/AL-41F-1-series engine that is also installed in the previous-generation Su-35. The aircraft’s new-generation Izdeliye-30 engine was test flown only in December 2017. The J-20 is supposed to receive a new Chinese-made WS-15 engine, but for now the engines in different versions of the aircraft seen to date are variants of the Shenyang Liming Aero-Engine Group WS-10A that is installed in the Shenyang J-11B, or a Russian-made Salyut AL-31FM2/3 variant.

Russia’s Deputy Minister for Defence, Yuri Borisov, announced on February 8 that the Su-57 has “completed the first stage of flight test operations.” This step signifies that the aircraft has entered the final testing phase before being introduced into service. Development aircraft made a brief operational evaluation deployment to Syria in late February. Borisov also stated that the Russian Aerospace Force (VKS) would sign a contract this year to “commit to the first squadron of 12 aircraft,” and that two initial aircraft from this contract will enter service in 2019.

One day later, on February 9, the People’s Liberation Army Air Force (PLAAF) declared that its J-20 had completed all testing and had been commissioned into combat service. “It marks an important step for the J-20 to have comprehensive combat capabilities,” announced Shen Jinke, a spokesman for the PLAAF. “The stealth jets will improve the air force’s comprehensive fighting ability and enable it to better safeguard China’s sovereignty, security, and territorial integrity.”

The induction of a true fifth-generation Su-57 into service with the VKS is still some time off in the future. During a visit by Borisov to the Komsomolsk-na-Amur plant (KNAAPO) that produces the aircraft, he was asked what the December 2017 test flight of the Izdeliye-30 fifth-generation engine that was installed in one of the two nacelles of Su-57 prototype number T-50-2 means for the program’s schedule. “For now it is difficult to judge, because all we have had is this one flight,” he said. “Thus far everything is normal, but you all understand that to complete a testing regime it is necessary to fly for a lengthy period of time. The general rule is for testing such as this to take place over two to three years.”

This would seem to put the Russian aircraft months, if not years, behind the J-20 in officially entering service, but the Chengdu aircraft seems to be operational in name only at this point. There are only eight of the J-20 prototypes flying, along with 20 or more “operational” aircraft. Analysts of the PRC’s defense industry also point out that there is a previous history of fighter aircraft being declared operational, but in reality they remain tethered to the production plant, as was the case with the Chengdu J-10.

Sources that spoke to AIN in Singapore also confirmed previous news reports that the J-20 has a substantial logistics tail in the form of specialized, climate-controlled hangars that maintain the aircraft at constant temperature and humidity levels. Extended exposure to the elements reportedly degrades the RCS reduction properties of the aircraft. “The number of these hangars and the process of constructing them is a limiting factor in the deployment of these aircraft,” reported one PRC aircraft analyst.

The WS-15 engine that is designed for the J-20 is not projected to be available before 2019. Until this time, the aircraft does not have an engine with the thrust levels required for it to achieve its specified performance, including the ability to supercruise. If the J-20 follows a similar path to that of the J-10, the introduction of a new, non-Russian engine will require a significant redesign of the inlet and the rear fuselage. (Source: Google/Aviation International)

08 Mar 18. Australia, Japan explore defence industrial partnerships. Japan and Australia are looking to expand defence industrial collaboration through a new forum, which held its first meeting in early March in Tokyo, officials have confirmed to Jane’s.

The forum is intended to broaden the scope of defence equipment and related technology co-operation between the two countries’ state-run defence research and development (R&D) agencies and privately owned defence companies, an official at the Japanese defence ministry’s Acquisition, Technology & Logistics Agency (ATLA) said.

In its initial stages the forum is intended to expand understanding of each other’s defence equipment and technology capabilities and requirements, the official added.

A spokesperson from the Australian Department of Defence (DoD) said the new forum was one element of the Australian government’s commitment to deepen its strategic partnership with Japan. (Source: IHS Jane’s)

08 Mar 18. Japan mulls over requests for defence equipment from Southeast Asia. Key Points:

Japan is studying several requests from Southeast Asian governments for donations of defence equipment
However, Japanese operational requirements will take precedence over assistance to foreign governments, a top military official has told Jane’s

The Japanese Maritime Self Defense Force (JMSDF) has said it is aware of several requests from countries in the Southeast Asian region for donations of excess defence equipment.

Besides military hardware, the Japanese government has also been approached by these Association of Southeast Asian Nations (ASEAN) countries to share technical knowledge and expand on bilateral military collaborations.

Japan has donated five King Air TC-90 aircraft, which were previously in service with the JMSDF’s training squadron, to the Philippine government as part of wider efforts to improve maritime capabilities of its partners in Southeast Asia.

Two of the airframes have been delivered to the Philippine Navy, while three other aircraft are currently scheduled for handover in 2018. The JMSDF is also providing training support on the TC-90 platform for Philippine Navy pilots and maintenance crew.

To strengthen its defence relationships with countries in Southeast Asia, the Japanese government has embarked on several initiatives to improve maritime of government agencies in the region in recent years, especially with those from the Philippines.

Besides the transfer of TC-90 aircraft, Tokyo has also aided the Philippine Coast Guard (PCG) to procure 10 new multirole response vessels from Japanese shipbuilder Japan Maritime United Corporation (JMUC). The PCG has so far received seven vessels in the programme, and is scheduled to receive the remaining hulls by the end of 2018. (Source: IHS Jane’s)

08 Mar 18. Quebec Plans Cluster of Excellence for Drones. A Cluster of Excellence for drones will be created in the Lac-Saint-Jean region of Quebec by the leaders of the Unmanned Aerial System Centre of Excellence (UAS CE). Amongst other benefits, its creation will bring significant advantages to Quebec’s economy. In order to further develop the growth of a regional ecosystem dedicated to commercial and civil UAVs, the government announced in its own 2016-2026 Aerospace Strategy, a $1m investment during the next five years.

A part of ACCORD program, which aims to support the development of strategic sectors and niches of excellence, the Quebec government has signed a three-year agreement of a Cluster of Excellence. As part of its 2016-2026 Aerospace Strategy, the Canadian government announced $1m would be invested over 5 years to progress the development of the region’s dedicated to commercial and civil UAVs industry.

$355,000 of the funding from the Strategic Industry and Cluster Support Program (PADS) has already been directed to the UAS CE to support its effort to create the Cluster of Excellence for both consumer and commercial UAVs. Additionally, $270,000 in financial aid will be granted to the to the UAS CE to implement the cluster, which will benefit industries such as energy, telecommunications and natural sources. Quality amenities are offered by the Centre.

Marc Moffatt, director general of the UAS CE is positive about the agreement, saying, “The UAS Cluster of Excellence will represent a strong and unified structure for the development of this sector.

“The Cluster of Excellence will contribute to the development of the drone technology, while being the voice of Quebec Industry. We will work to structure, promote and represent the Quebec UAS Industry within Canada, as well as on the international level.”

The UAS CE is an international center of expertise, services and innovation, supplying all the necessary requirements to permit the Cluster of Excellence members tobecome a world leader in this cutting-edge industry.

Lac-Saint-Jean region has already gained a respect as having expertise in the UAV business, an ever-growing marketplace. Along with a 5,000-foot paved runway, navigation systems, an automatic weather station, and other amenities, the UAS CE headquarters at Alma Airport are ideally located for running UAV tests.

Moreover, the UAS CE has access to one of the only BVLOS (beyond visual line of sight) UAV flight zones in Canada, leading the way in the design, testing, application and performance of commercial and civil drones. (Source: UAS VISION)

09 Mar 18. Donald Trump agrees to meet Kim Jong Un Landmark summit looms after US president accepts invitation from North Korean leader Kim Jong Un. Donald Trump is to meet Kim Jong Un within weeks, the first summit between a US president and a North Korean leader, after Pyongyang offered to suspend nuclear and missile tests. Chung Eui-yong, South Korea’s national security director, announced the talks outside the White House following meetings with US officials. “President Trump . . . said he would meet Kim by May to achieve permanent de-nuclearisation,” Mr Chung told reporters as he praised Mr Trump’s leadership. Mr Trump later hailed the breakthrough but cautioned that the policy of putting pressure on Pyongyang would stay in place. “Kim Jong Un talked about de-nuclearisation with the South Korean representatives, not just a freeze,” he tweeted. “Also, no missile testing by North Korea during this period of time. Great progress being made but sanctions will remain until an agreement is reached. Meeting being planned!” South Korean officials delivered the invitation to the Oval Office on Thursday after meeting Mr Kim earlier this week, marking a turnround in communications after the two leaders traded threats of nuclear war over Twitter and television for months. One senior administration official said the president had backed the move to avoid pitfalls of the past and bypass low-level talks that do not deliver results. “Kim Jong Un is the one person who is able to make decisions under their uniquely authoritarian, or totalitarian, system,” said the official. “[Mr Trump] expects North Korea to start putting action to these words that were conveyed via the South Koreans.” Successive administrations have tried in vain to strike deals with North Korea. Pyongyang has rapidly accelerated its ballistic weapons programme since Kim Jong Un came to power in 2011, and now claims the capability of striking the US with a nuclear warhead. One senior US official cautioned on the limited scope of the meeting. “At this point we’re not even talking about negotiations,” the official said. “What we’re talking about is an invitation . . . to meet face-to-face.” Evan Medeiros, former Asia director at the US National Security Council under Barack Obama, said the meeting was a “mistake”. “This move is vanity over strategy,” he said. “It validates and advances Kim’s goal of being recognised as a de facto nuclear state. You don’t give away a presidential meeting for nothing. What did we get for this? Nothing.” South Korea’s national security adviser Chung Eui-yong (L) announcing a planned US-North Korea summit. Next to him at the White House is Cho Yoon-je, South Korean ambassador to the US © AFP South Korean officials, however, say they have extracted a number of concessions from the North. Among them is that Pyongyang would not object to routine large-scale joint military exercises that the US has already once delayed to accommodate the Winter Olympics. They are due to resume next month. Mr Chung also confirmed that Mr Kim said in their meeting that he was “committed to de-nuclearisation”, and implied that South Korea would continue to support sanctions. “The pressure will continue until North Korea matches its words with concrete actions,” he said. The US has led a worldwide pressure campaign against North Korea for more than a year, squeezing its access to revenues by spearheading economic sanctions at the UN, imposing bilateral penalties and pushing allies to go beyond the scope of the UN restrictions. “Along with president Trump, we are optimistic about continuing a diplomatic process to test the possibility of a peaceful resolution,” said Mr Chung, insisting that South Korea, the US and its other allies would not repeat the mistakes of the past, an apparent reference to a series of previous broken deals. Mr Chung spoke alongside his intelligence chief Suh Hoon after meeting senior US officials including defence secretary Jim Mattis, director of national intelligence Dan Coats, national security adviser HR McMaster and John Sullivan, the number two at the state department. But while senior US officials have welcomed the potential opening with polite caution in public, several remain deeply sceptical about the prospects for any deal. “These are people who are used to deception,” a senior administration official told the Financial Times. Many worry that Pyongyang will use the lull in tension to continue to develop its weapons or attempt to extract concessions on sanctions. The official said the only “acceptable objective” remained the complete, irreversible and verifiable de-nuclearisation of the Korean peninsula. “We’re all committed to that — US, South Korea, Japan and China as well,” the official told the FT. “We all understand how dangerous the situation is and what is at stake.” It is not yet clear what Mr Trump and Mr Kim may discuss at their first meeting. The White House said the time and place was yet to be determined. (Source: FT.com)

08 Mar 18. U.S. wary of North Korea weapons advances while talks take place. North Korea could buy time to build up and refine its nuclear arsenal, including a warhead able to survive re-entry into the Earth’s atmosphere, if it manages to drag out any talks with Washington, U.S. officials and experts say.

Even if North Korea freezes nuclear detonations and missile tests during such talks – as South Korea has said Pyongyang offered to do – there is plenty of other technical work it could pursue while diplomatic efforts are under way, they say.

Such work could include completing development of a re-entry vehicle that can deliver a nuclear weapon, production of rocket frames, engines and mobile launchers and increasing the output of plutonium and highly enriched uranium for bomb-making.

“North Korea can be expected to proceed on all these things … unless an agreement freezes or stops these activities, something unlikely in the short run,” said David Albright, a nuclear non-proliferation expert who heads Washington’s Institute for Science and International Security.

President Donald Trump has said Pyongyang seems “sincere” in its offer of talks, but some in Washington are wary that North Korean leader Kim Jong Un may be using it as a stalling tactic for further weapons development – especially of a nuclear-tipped missile capable of hitting the U.S. mainland – and to seek relief from tough international sanctions.

U.S. intelligence officials have said Kim is only months away from being able to mount such a strike, while some experts say he may already have the basic capability, even if it remains untested.

The Trump administration must weigh such risks, including North Korea’s history of reneging on commitments, in deciding whether to go to the negotiating table, U.S. officials said, speaking on condition of anonymity.

Proponents of engagement, including Joel Wit, a senior fellow at Washington’s U.S.-Korea Institute, said the fact that North Korea was unlikely to agree to a complete freeze of activity should not be an obstacle.

“These programs are going to continue, but if we have a suspension of nuclear tests and missile tests, that’s a good first step here. It’s better than not having one,” he said.

U.S. officials said Trump would be prepared to quickly pull the plug on diplomacy if it becomes obvious that Pyongyang is just trying to drag out talks.

One administration official said that while it was unclear how long Trump might keep the negotiating window open, it would likely be evident in months “if North Korea is just playing us.”

RE-ENTRY VEHICLE CHALLENGE

Either way, U.S. officials and experts agree there is value in getting North Korea to put its testing on hold as launches and detonations are vital to developing reliable weapons.

North Korea has tested dozens of missiles of various types in the past two years, including one launch of its largest-ever intercontinental ballistic missile, which is theoretically capable of hitting anywhere in the United States, on Nov. 29. There have since been no more tests.

South Korean envoys, who met Kim in Pyongyang this week and who are due in Washington to brief U.S. officials on Thursday, said he offered to suspend all nuclear and missile tests while conducting talks with the United States.

They said Kim also expressed a willingness to denuclearize, something he previously declared non-negotiable, if his country’s security was guaranteed.

U.S. and South Korean officials worry that North Korea will ultimately lay down impossible demands in talks – such as the complete withdrawal of U.S. forces from South Korea – and once diplomacy fails, emerge as an even greater threat than before.

Perhaps North Korea’s biggest challenge, experts say, is to show it can produce a re-entry vehicle robust enough to prevent a nuclear warhead burning up when it hurtles back into the Earth’s atmosphere.

Some of that work can be done on the ground, although a live test will eventually be needed as North Korea has never flown a missile at a trajectory that would simulate a long-range flight, experts say.

U.S. officials and experts believe North Korea also needs more time to create facilities capable of mass-producing missiles, engines and other components – a challenge to any country even without the constraints of stringent international sanctions.

To create a credible deterrent to the United States, North Korea would have to show it has the ability to launch multiple missiles at once to circumvent U.S. anti-missile defences in the event of war.

It also needs additional transporter-erector launchers, or TELs, to enable it to fire missiles from hastily established positions less vulnerable to detection and attack than permanent launch sites.

At the same time, negotiations are unlikely to stop North Korea from continuing to seek materials and help from outside the country for its weapons programs.

“North Korea needs considerable outside help to outfit and sustain its missile and nuclear production,” Albright said. “Keeping the pressure up and implementing sanctions and export controls better is critical whatever happens.” (Source: Reuters)

08 Mar 18. U.S. space companies aim to help Brazil rocket base lift off. U.S. companies eager to tap into the fast-growing market for low-cost satellite launches could become the first customers when Brazil’s Alcantara space center near the equator opens as a commercial spaceport, executives and Brazilian officials said.

Aerospace titans Boeing Co and Lockheed Martin Corp in December visited the Alcantara space center, but the Brazilian space agency’s launch site is especially attractive to smaller firms because its equatorial location cuts fuel costs by a third.

Still, Brazil’s aim of becoming a hot new hub in the space industry will depend on negotiating a technology safeguards agreement (TSA) with the United States to protect sensitive American space launch and satellite technology. Without it, no U.S. rocket can blast off from the South American country.

Brazil wants to attract customers by marketing itself as the cheaper alternative to Kourou, the European spaceport in neighboring French Guiana, which mostly launches big satellites. Brazilian officials are hoping to complete a U.S. TSA this year that would facilitate the opening of the commercial spaceport.

On Feb. 22, U.S. and Brazilian government representatives, along with space companies from both countries, held a conference call with a White House official who was asked whether the Trump administration would agree to a TSA with Brazil, according to a person on the call.

“We are encouraged that Brazilian officials have expressed an interest in working more closely with the United States in the space sector,” a spokeswoman for the White House National Security Council said. She gave no further details.

The safeguard accord could be ready this year if the U.S. State Department gets negotiating permission, according to industry representatives.

Tucson, Arizona-based Vector Launch Inc, which specializes in small rockets, appears eager to launch from the Brazilian site. The company wants to undercut big payload specialists like billionaire entrepreneur Elon Musk’s SpaceX by launching so-called microsatellites from small rockets, cutting costs and wait time for clients.

“Our vision is to launch hundreds of Vector rockets into orbit to satisfy the growing market for microsatellites,” said Vector Vice President Alex Rodriguez, who made a December visit to Alcantara coordinated by Boeing.

“We are closer to the equator and have an excellent site for launching microsatellites,” said Brigadier Luiz Fernando Aguiar, coordinator of the Brazilian Air Force’s space program, comparing the Alcantara site with Kourou.

Alcantara has radars, a runway and a seaport to unload equipment, along with plenty of open land to store rockets and build a liquid oxygen plant if needed, he said.

A previous attempt at a U.S.-Brazilian space partnership was scuttled in 2003 when the technology safeguards agreement faced resistance from the leftist government of former President Luiz Inacio Lula da Silva and was thwarted by Brazilian lawmakers. The new effort is expected to pass easily in a more conservative Brazilian Congress.

FAST-GROWING NICHE

While the market for launches of large geosynchronous satellites has solidified, the Space Enterprise Council, which represents U.S. industry from launch services to satellite manufacturers, has said the expanding microsatellite sector could experience up to 600 launches for satellites under 110 pounds (50 kg) between now and 2022.

Alcantara could capture 25 percent of that market, according to the council, which has said a U.S.-Brazilian partnership would give both countries an edge in the fast-growing segment.

The cost of microsatellites is a fraction of larger satellites options, making them increasingly important for GPS navigation, Earth imagery, surveillance and internet communications.

Boeing, which chairs the Space Enterprise Council, is in talks to partner with Brazil’s Embraer SA, the world’s third-largest commercial planemaker and the main player in the Brazilian aerospace industry.

SpaceX was not represented on the visit to Alcantara and is not a member of the council, which also includes Lockheed Martin, Northrop Grumman Corp and Viasat Inc.

After Brazilian officials last month said SpaceX was on the trip, the company said that was incorrect and that it was not interested in launching from Brazil.

Viasat last month entered the satellite broadband businesses in Brazil with an agreement to use capacity on the country’s 5-tonne SGDC-1 geostationary satellite launched last year from Kourou and operated by state-run telecom company Telebras.

Brazil abandoned plans to build its own rocket to put large satellites in orbit after an explosion and fire in 2003 at Alcantara killed 21 people.

The country is developing a smaller rocket for microsatellites that will be launched from Alcantara next year, boosted by engines developed by the German Aerospace Center. (Source: Reuters)

08 Mar 18. U.S. destroyer McCain collision which killed 10 sailors caused by ‘sudden turn’: Singapore. A U.S. guided missile destroyer’s deadly collision with an oil tanker near Singapore in 2017 was caused by “a sudden turn” made by the warship that put it in the path of the commercial vessel, said a report by the Singapore government on

The collision on Aug. 21, which killed 10 sailors and was one of a handful of incidents in the Asia Pacific region involving U.S. Navy warships, raised questions about Navy training and led to the removal of a number of officers.

“The collision between the USS John S McCain (JSM) and Alnic MC (AM) as they were transiting through the Singapore Strait happened because of a sudden turn to Port by JSM, which caused it to head into the path of AM,” the report said.

The sudden turn was due to “a series of missteps” that took place at the control of the John S. McCain that unintentionally increased the rate of the vessel’s turn, the report by the Transport Safety Investigation Bureau said.

The agency is the air and marine accident investigative arm of the Singapore government. It said its report “should not be used to assign blame or determine liability”.

The John S McCain’s sister ship, guided missile destroyer USS Fitzgerald, almost sank off the coast of Japan in June last year after colliding with a Philippine container ship. The bodies of seven U.S. sailors were recovered after that incident.

The U.S. Navy subsequently announced a series of systemic reforms aimed at restoring basic naval skills and alertness at sea after a review of deadly ship collisions in the Asia-Pacific showed sailors were under-trained and over-worked. (Source: Reuters)

07 Mar 18. Germany moves to boost presence in Afghanistan, training in Iraq. The Cabinet of German Chancellor Angela Merkel on Wednesday approved an extension of global military missions, including an uptick of forces for Afghanistan. The move would bring an end to the training of Kurdish peshmerga battling the Islamic State group in favor of what officials said would be a broader stabilization effort.

The German parliament has yet to approve the new mandates, which analysts say is likely. Notably, an Iraq mission extension comes with an end date of Oct. 31, 2018. The Afghanistan mandate would end March 31, 2019.

The upper limit for Berlin’s Afghanistan contingent is set to swell from 980 troops to 1,300; Iraq is slated to see of a reduction from 1,200 to 800 forces.

Defence Minister Ursula von der Leyen said the plan for Iraq represents a “new quality” despite the nominal reduction. After the “great success” of enabling the peshmerga to defeat ISIS in northern Iraq, as von der Leyen described it, that mission is considered over.

The Bundeswehr’s focus would now shift to providing training throughout the country, with detachments in Baghdad and Erbil, and helping the central government build a functioning administration, she added.

German soldiers also are slated to teach Iraqi forces to disable improvised explosive devices, which continue to make cities regained from ISIS control unsafe for civilians.

In Afghanistan, von der Leyen said local forces still need international support to counter al-Qaida and the Taliban. As part of the new mandate, Bundeswehr troops would return to the Kunduz area in the country’s north, where German soldiers were stationed until 2013.

The Cabinet’s renewal of German military commitments comes as the Defence Ministry is under pressure for serious equipment shortfalls in the Bundeswehr. They affect virtually all major weapon systems, including tanks, helicopters, ships and submarines.

Critics have questioned how the military could shoulder a more demanding mission in Iraq, in particular when vital military hardware is in short supply. Von der Leyen said equipment support to overseas operations would be prioritized as officials seek to get a handle on deficiencies. (Source: Defense News)

08 Mar 18. Japan’s new advanced fighter may be based on existing foreign design: sources. Japan is seeking proposals for a new advanced jet fighter based on an existing Western aircraft and wants American and British cooperation to help kick-start development of the project, which is estimated to cost around $40bn, three sources said.

Japan this month issued a third request for information (RFI) to defence companies, seeking proposals for the new aircraft, dubbed the F-3. Unlike the first two requests, this one went only to foreign companies in the United States and Europe, with a separate, more detailed document delivered to London and Washington, according to the sources, who have direct knowledge of the requests.

“Japan expects specific proposals for designs based on existing aircraft,” said one of the sources. The two previous RFIs did not attract any detailed proposals, he added.

The requests for a design based on existing aircraft and the separate documents sent to the British and U.S. governments have not been previously reported.

The sources declined to be identified because they are not authorised to speak to the media.

Existing airframes Japan could use include the F-35 Lightning II stealth jet built by Lockheed Martin Corp (LMT.N) or Boeing Co’s (BA.N) F/A-18E/F Super Hornet; and the Eurofighter Typhoon, manufactured by a European consortium including BAE Systems Plc (BAES.L).

Japan’s last domestically produced jet fighter, the F-2, which entered service in 2000, was built jointly by Mitsubishi Heavy Industries (MHI) (7011.T) and Lockheed Martin based on the U.S. F-16 multi-role fighter. As Japan’s leading fighter maker, MHI, which built the World War Two-era A6M Zero, would anchor the Japanese share of the F-3 project.

“We are considering domestic development, joint development and the possibility of improving existing aircraft performance, but we have not yet come to any decision,” a Ministry of Defense representative said.

Building Japan’s next-generation fighter based on a foreign aircraft already in service could save money, but come at the expense of advanced features like stealthy shaping. Neither the Typhoon nor Super Hornet are designed to be near-invisible to radar.

Lockheed Martin, Boeing and BAE Systems (BAES.L), Britain’s largest defence company, were not immediately available for comment.

Japan’s approaches to the U.S. and British government come as Washington considers its replacement for the F-22 Raptor. Britain, which has sought closer security ties to Japan, including cooperation on developing other defence equipment, may eventually need a fighter to succeed the Typhoon.

Japan, which is buying the radar-evading F-35 stealth jet to modernize its air defences in the face of growing Chinese military strength, wants to introduce a separate air superiority fighter in the 2030s to help deter intrusions into its airspace.

Japan has so far struggled to come up with its own design for a new aircraft, raising a question mark over the country’s first jet fighter programme since the F-2.

Japan will need begin preliminary talks with Washington soon if it wants to include anything substantial about the F-3 in the new five-year defence equipment plan, which begins in April 2019. Details on that plan will be released at the end of the year, another of the sources said.

Although some defence ministry officials and lawmakers have lobbied for a domestically made aircraft to help sustain Japan defence companies hurt by increased spending on U.S. gear, finance officials have questioned whether that is cost effective. Opting for international cooperation should lower the cost of a new jet by expanding the number of users, spreading the unit cost beyond Japan’s air force. Mitsubishi Heavy tested a prototype stealth jet in 2016, the ATD-X or X-2, which cost the Japanese government $350m to develop. (Source: Reuters)

08 Mar 18. Malaysia says EU palm oil curbs could weigh on France in fighter jet deal. Malaysia, the world’s No.2 producer of palm oil, on Thursday said the European Union’s decision to curb imports of the commodity could impact France’s hopes of winning one of Asia’s biggest fighter jet deals.

France’s Rafale jet, built by Dassault Aviation (AVMD.PA), had until recently been seen as the frontrunner in Malaysia’s plan to buy up to 18 new fighter planes in a deal potentially worth over $2bn, but negotiations hit a snag after European lawmakers pushed to stop using palm oil in motor fuels.

Malaysia said earlier this week that it would not shy away from a trade war and that it would respond with “might and tact” if the EU does not back down on curbing palm imports.

“As you know, the jet fighters the French are looking at, the Rafale, are also competing with the Brits who have left the EU. So they have to take that into consideration (in relation to palm oil curbs),” Malaysia’s defense minister, Hishammuddin Hussein, said at a news conference outside parliament.

Britain’s BAE Systems (BAES.L) has been on a consistent and public campaign for nearly a decade now to win the Malaysia contract, even establishing a regional office in the capital, Kuala Lumpur.

Hishammuddin’s latest statement raises hopes for BAE, which looked to be on the backfoot after Malaysian Prime Minister Najib Razak said that he had discussed the possible purchase of Rafale fighters with Francois Hollande during the then-French president’s visit in March last year.

Both Dassault and BAE did not immediately respond to requests for comment. Southeast Asia’s third-largest economy could lose some $500m in annual revenue if the EU goes ahead with its plan to crimp palm imports, analysts have estimated.

The move also adds to the troubles of Prime Minister Najib, whose ruling coalition will rely heavily on the votes of over 600,000 palm oil plantation smallholders and their families in national polls that must be held by August.

Hishammuddin said Malaysia “cannot put a price tag” on the interests of the country and its people when negotiating bilateral deals.

“So (to) those who want to have strong bilateral relations with us, do not just look at economic considerations separate from other considerations, especially when it come to defense because we do have other options,” he said.

Malaysia has for several years been weighing France’s Rafale jet and the Eurofighter Typhoon, built by a European consortium including BAE, as it looks to replace its Russian MiG-29s – most of which are grounded.

However, a decision has been delayed due to the upcoming national polls and a shift in Malaysia’s focus toward upgrading aerial surveillance capabilities. (Source: Reuters)

07 Mar 18. Nobel Peace Prize Laureate ICAN (International Campaign to Abolish Nuclear Weapons) and PAX today released the 2018 ‘Don’t Bank on the Bomb’ Report, which found a massive increase of USD 81bn in new investment in 2017 compared to 2016. The report shows 20 companies in particular stand to profit the most from the increase in nuclear threats.

The 2018 Don’t Bank on the Bomb Report found:

A total of USD 525bn (an increase of USD 81bn) was made available to the nuclear weapon producing companies, of which USD 110bn came from just three companies: BlackRock, Vanguard and Capital Group
329 banks, insurance companies, pension funds and asset managers from 24 countries invest significantly in nuclear weapons
The top 20 nuclear weapon producing companies stand to benefit the most from this increased nuclear threat, most of which have dedicated significant lobbying resources in Washington DC
On a positive note, since the adoption of the UN Treaty on the Prohibition of Nuclear Weapons 30 companies have ceased investing in nuclear weapons.
Two of the top five largest pension funds in the world are divesting from nuclear weapons.

“If you have been wondering who benefits from Donald Trump’s threats of nuclear war, this Report has that answer,” said ICAN Executive Director Beatrice Fihn. “These are the companies that stand to profit from indiscriminate mass murder of civilians. We grow less safe while they cash in on chaos by banking on armageddon.”

“A new nuclear arms race has moved the Doomsday Clock closer to armageddon, but it has also started a new nuclear gold rush for those wanting to cash in on mass destruction,” said Ms Fihn.

While this Report found a massive increase of investment in mass destruction, it also profiles 63 financial institutions with policies limiting or prohibiting investment in any type of nuclear weapon producer.

Susi Snyder, of PAX and co-author of the Report highlighted the positive findings: “The nuclear ban Treaty has created a movement towards divestment, reflected in the reduction in the number of companies investing in nuclear weapons, and an increase in financial institutions comprehensively prohibiting any investment. Investments are not neutral, these companies should be congratulated for standing on the side of humanity.”

07 Mar 18. Iran’s missile production has increased three-fold – Guards commander. Iran has increased its missile production three-fold, a senior Revolutionary Guards commander said Wednesday, according to the Fars news service. The commander did not explain during what time period the production increase had taken place.

“In the past we had to do a lot of explaining to various bodies for our actions but it’s not like that anymore,” Brigadier General Amir Ali Hajizadeh, the head of the Guards’ aerospace division said, according to Fars.

“Our production has increased three-fold compared to the past,” he said, referring to missiles.

The government, parliament and other Iranian officials had, in particular, agreed on the need for ground-to-ground missiles, Hajizadeh said.

Fars gave no further details.

France’s foreign minister visited Iran on Monday on a delicate mission to reaffirm Europe’s support for a nuclear deal that opened Iran’s economy, while echoing U.S. concern about its missile programme and role in regional conflicts.

Jean-Yves Le Drian’s visit reflected French efforts to safeguard Iran’s 2015 accord with major powers.

U.S. President Donald Trump has threatened to pull out of the deal unless three European signatories help “fix” it by forcing Iran to limit its sway in the Middle East and rein in its missile programme.

Senior Iranian officials told Le Drian on Monday that Iran’s ballistic missile programme was not up for negotiation. (Source: Reuters)

05 Mar 18. US showcases strength of naval relations in Southeast Asia as Carl Vinson arrives in Vietnam. Key Points:

A US aircraft carrier has arrived in Vietnam for the first time in more than 40 years
Visit demonstrates the US Navy’s increasing ability to call on friendly ports as it pursues security objectives in Southeast Asia, and the wider Asia-Pacific region

In a sign of increasingly cordial naval ties between Washington and Hanoi, USS Carl Vinson (CVN 70) sailed into Da Nang Bay on 5 March, marking the first time that a US Navy (USN) aircraft carrier has visited Vietnam in more than 40 years.

According to a notice to mariners (NTM) and accompanying berthing co-ordinates posted by Vietnam Maritime Safety – North, the Nimitz-class aircraft carrier is currently anchored about 3 km away from the Port of Tien Sa in Da Nang Bay.

The carrier is accompanied by two other warships from its strike group, the Ticonderoga-class guided-missile cruiser USS Lake Champlain (CG 57), and the Arleigh Burke-class guided-missile destroyers USS Wayne E Meyer (DDG 108).

“Our nations’ relationship has reached new heights in the past few years, and USS Carl Vinson ’s port visit to Vietnam is a reflection of that,” said Admiral Scott Swift, Commander US Pacific Fleet, in a statement released by the USN. “I am confident that engagements like this will further expand the comprehensive partnership between the United States and Vietnam,” he added.

The Carl Vinson Strike Group departed San Diego in early January 2018 for a scheduled deployment in the Asia-Pacific region. Prior to its arrival in Vietnam, the carrier was in Manila for a five-day port visit from mid-February 2018.

Personnel from the carrier and its strike group ships are expected to partake in professional exchanges, sports competitions, and community service projects during the stop in Vietnam, which is expected to conclude on or around 8 March.

Besides Lake Champlain and Wayne E Meyer, other elements in Carl Vinson ’s strike group includes more than 70 embarked aircraft from USN’s Helicopter Sea Combat Squadron (HSC) 4, Helicopter Maritime Strike Squadron (HSM 78), the F/A-18 Strike Fighter Squadrons (VFA) 2, VFA-34, VFA-137, and VFA-192, and the Carrier Airborne Early Warning Squadron (VAW) 113. (Source: IHS Jane’s)

06 Mar 18. South Korea looks to spur exports through offsets. South Korea’s Defense Acquisition Program Administration (DAPA) is to launch an initiative aimed at boosting exports through offsets.

The initiative – focused on supporting local involvement in international supply chains – continues DAPA’s focus on developing local small and medium-sized enterprises (SMEs). A DAPA official told Jane’s on 5 March that it plans to enhance support for local SMEs looking to participate in offsets linked to major procurement programmes. DAPA has already identified 18 acquisition projects through which the export focus will be pursued. These include contracts linked to the development of FFX-III frigates for the Republic of Korea Navy, and the upgrade of CH-47D Chinook heavy-lift helicopters operated by the Republic of Korea Army and Air Force. (Source: IHS Jane’s)

06 Mar 18. China defends hike in military spending as proportionate and low. China’s increase in military spending for 2018, the biggest rise in three years, was proportionate and low, and Beijing had not been goaded into an arms race with the United States, state media said on Tuesday. China on Monday unveiled an 8.1 percent rise in defence spending at the opening of parliament, fuelling an ambitious military modernisation programme and making its neighbours, particularly Japan and self-ruled Taiwan, nervous.

In an editorial, the official China Daily said the figure had prompted “finger-pointing from the usual suspects”.

“China’s defence budget is neither the largest in size – it accounts for just one-fourth of the military spending of the United States – nor does it have the fastest growth rate,” the English-language newspaper said.

“And if calculated in per capita terms, China’s military lags well behind other major countries.”

The defence spending figure is closely watched worldwide for clues to China’s strategic intentions as it develops new military capabilities, including stealth fighters, aircraft carriers and anti-satellite missiles.

Commander of the U.S. Navy’s Pacific Fleet Admiral Scott Swift described China’s lack of transparency as “troubling.”

“There are a lot of questions on the minds of countries in the region and extending beyond the region of what exactly does this mean. People shouldn’t be left guessing as to exactly what the objective of these increases is,” he said at a press roundtable in Tokyo where he is meeting Japanese officials.

China insists its military spending is transparent and that it poses a threat to nobody, simply needing to update old equipment and defend its legitimate interests, even as it is increasingly assertive over disputes in the East and South China Seas and on self-ruled Taiwan, which China claims.

In the East and South China Seas, China is simply trying to stand up for itself, the China Daily said.

“The country has seen its maritime interests being increasingly infringed upon in recent years, and thus seeking a stronger military is natural for it to safeguard its interests and counter any threat that may materialise from the aggressive posturing of others upset by its rise.”

China has seen the United States as its biggest potential security threat, alarming Beijing with freedom of navigation patrols in the South China Sea the United States calling China a strategic competitor.

U.S. President Donald Trump has proposed the largest military budget since 2011, focused on beefing up the United States’ nuclear defences and countering the growing strength of China and Russia.

Official Chinese defence spending is about one-quarter that of the United States, though many foreign analysts and diplomats say China under-reports the figure.

Widely-read Chinese tabloid the Global Times said if China really wanted to expand militarily, the defence budget should really be rising 20 to 30 percent.

“China has obviously not fallen into the mind-set of engaging in an arms race with the U.S. Otherwise it could totally realise double-digit increases in its defence expenditure,” the paper said in its editorial.

U.S. provocations in the South China Sea, tension in the Taiwan Strait and the United States, Japan, Australia and India forming alliances demand a rise in spending, it added.

“But Beijing has stuck to its own template and was not disturbed by external factors.”

Still, China has made no secret of its broader military ambitions, with President Xi Jinping promising last year to make China’s armed forces world-class by the middle of the century.

Xu Qiliang, a vice chairman of the Central Military Commission, which runs the armed forces and Xi heads, told military delegates to parliament that China needed to “fully strengthen troop training and war preparedness and raise the ability to win”, state news agency Xinhua said late on Monday. (Source: Reuters)

05 Mar 18. What we know about China’s increased defense spending in 2018. China’s defense budget will rise 8.1 percent to 1.1trn yuan (U.S. $173.4bn) this year as the country prepares to launch its second aircraft carrier, integrate stealth fighters into its air force, and field an array of advanced missiles able to attack air and sea targets at vast distances. The figure released in a report Monday to the ceremonial National People’s Congress is an increase in the growth rate from last year, when Finance Ministry officials said the budget was rising 7 percent to 1trn yuan.

Years of double-digit percentage growth have given China the world’s second-largest defense budget after the United States, which is in a class of its own with a proposed budget of $716bn for next year.

“We will stick to the Chinese path in strengthening our armed forces, advance all aspects of military training and war preparedness,” Premier Li Keqiang said as he read a report to nearly 3,000 delegates at the Great Hall of the People.

The armed forces will “firmly and resolutely safeguard national sovereignty, security and development interests,” Li said.

China has the world’s largest military by number of personnel, but Li said the country had “basically completed” the target of reducing the size of the armed forces by 300,000 troops. That would leave the People’s Liberation Army’s strength at about 2 million troops.

But China’s defense spending as a share of gross domestic product and the budget remains lower than that of other major nations, Zhang Yesui, a spokesman for the legislature, said Sunday.

This year’s defense budget comes to about 1.3 percent of last year’s GDP of 82.7trn yuan.

Analysts don’t consider China’s publicly announced defense spending to be entirely accurate since defense equipment projects account for a significant amount of “off book” expenditures.

Noting that this year’s increase was roughly the same as last year’s when adjusted for inflation, Shanghai military expert Ni Lexiong said China was seeking to avoid a full-on arms race based on quantity of weapons, choosing instead to invest in high-tech systems and training.

Rivals such as the U.S., Japan and India should be less anxious at the moderate rate of budget growth, although they “won’t feel happy” to see rapid enhancements in China’s air, naval, missile and anti-satellite capabilities, said Ni, a professor at Shanghai University of Political Science and Law.

China’s defense budget is so large now that double-digit annual percentage increases are no longer necessary, said military commentator Song Zhongping.

New funds are going mainly to raise living standards for service members, increase training, and prepare for potential crises on the Korean Peninsula, the border with India or in the South China Sea or Taiwan Strait, Song said.

Much of China’s energies have been focused on what is known as anti-access/area denial operations, which seek to scare the U.S. Navy and other forces far from China’s shores.

China’s navy has been training rigorously on the Liaoning aircraft carrier, which was bought from Ukraine and heavily refurbished. In April, it launched a 50,000-ton carrier built entirely on its own based on the Ukrainian model.

It will join the improved Type 093B Shang-class nuclear-powered attack submarine equipped with anti-ship missiles — considered only slightly inferior to the U.S. Navy’s mainstay Los Angeles-class boats — and the Type 055 guided-missile destroyers at the forefront of China’s naval technology.

Such vessels stand to alter the balance of power in the Indo-Pacific, where the U.S. Navy has long been dominant and regional rivals such as Japan and India are stepping up their presence. Most navy ships already have anti-ship cruise missiles with longer ranges than those of their U.S. counterparts.

China’s navy is also relying on numerical superiority to boost its influence.

All three of China’s sea forces — the navy, coast guard and maritime militia — are the largest of their types by number of ships, allowing them to “maintain presence and influence in vital seas,” according to Andrew S. Erickson of the U.S. Naval War College’s China Maritime Studies Institute.

All three fleets are growing “leaner and meaner” due to a greater emphasis on technical sophistication, Erickson wrote, adding that the U.S. also anticipates facing a Chinese submarine fleet twice its number, though less technologically advanced.

In the air, China last month said it had begun equipping combat units with its J-20 stealth fighter jet, the country’s answer to fifth-generation jets such as the U.S. F-22 and F-35. No less impressive is China’s missile technology, particularly the DF-21D, which is built to take out an aircraft carrier, and a new air-to-air missile with a range of some 400 kilometers that could attack assets such as early warning aircraft and refueling tankers crucial to U.S. Air Force operations.

In a further display of sophistication, China said in early February that it had successfully tested a midcourse anti-missile defense system, deploying similar technology to that used to destroy a defunct Chinese satellite in 2007.

China’s military planners have also taken note of the U.S. shift this year in its threat analysis from terrorism to rivals Russia and China, said Yue Gang, a retired colonel and military analyst.

Though China doesn’t wish to be seen as a Russian ally, there is a renewed sense of big-power competition, Yue said.

“The smell of gunpowder is growing thicker,” he said. (Source: Defense News)

05 Mar 18. Japan Backs Out of Plan to Develop Fighter Jet on Its Own.

Faced with the high cost of developing a new fighter to replace its F-2 fighters, Japan has opted to instead look for a partnership with an American aerospace company, which could well spell the end of an ongoing cooperation with Britain. (Wikipedia photo)

Japan is moving to scrap plans to domestically develop a new advanced fighter jet due to staggering costs and anticipated engineering pitfalls. The Defense Ministry initially had three possible alternatives for the fighter jet that would replace the F-2 fighter-attacker that will be gradually mothballed from around 2030. But with China and Russia showing greater military assertiveness in the region, Defense Ministry officials face the key task of replacing the F-2 with a fighter with more advanced capabilities. The ministry decided its options were to fully develop the next-generation fighter jet domestically, develop it jointly with other nations, or extend the life of the F-2 through various modifications. It initially leaned toward domestic development as it was deemed to “be important in maintaining Japan’s fighter jet technology,” according to a high-ranking defense official. There were expectations that Mitsubishi Heavy Industries Ltd. would play a leading role in developing the fighter jet. This was before a subsidiary of Mitsubishi Heavy Industries ran into difficulties developing the Mitsubishi Regional Jet passenger aircraft for commercial production. Finance Ministry officials eventually urged caution, citing the huge costs that domestic development would entail.

(defense-aerospace.com EDITOR’S NOTE: The Japanese-language version of the same article says that “Japan has decided that it will seek foreign help in creating a successor for its F-2 fighter fleet and a request for information (RFI) will be sent out to U.S. aerospace companies this week,” according to the Alert 5 website. (Source: defense-aerospace.com/Asahi Shimbun)

04 Mar 18. India, Vietnam to deepen defence trade ties. India and Vietnam have agreed to deepen defence trade ties through New Delhi’s provision of military aid to the Southeast Asian country. In a joint statement issued on 4 March during Vietnam President Tran Dai Quang’s visit to India, the two governments also highlighted expanding opportunities for defence industrial collaboration based on Indian military sales to Vietnam. This is being facilitated by two separate agreements in recent years through which India will provide Vietnam with a total of USD600m in state credit with which to procure Indian-made defence equipment as well as related technologies to strengthen Vietnam’s defence industry. (Source: IHS Jane’s)

05 Mar 18. China announces 8% increase in defence spending. China’s defence budget in 2018 will increase by 8.1% to CNY1.11trn (USD175bn), the official Xinhua news agency reported on 5 March. The increase – announced at the start of the 13th National People’s Congress (NPC) in Beijing – is slightly higher than the 7.6% and 7.0% growth recorded in the defence budgets of 2016 and 2017, which, according official figures, were CNY886.9bn and CNY1.044trn respectively. However, reflecting China’s continuing economic challenges, Xinhua also noted that the 2018 defence budget is the third military expenditure to slip into single digits since 2013 when it climbed 10.7% to CNY720.2bn. (Source: IHS Jane’s)

02 Mar 18. France tells Iran risks sanctions if ballistic missile issue not handled. France’s foreign minister told Iran ahead of a visit to Tehran on Monday that the country needed to address concerns over its ballistic missile programme or risked new sanctions.

“There are ballistic programmes of missiles that can reach several thousand kilometres which are not compatible with U.N. Security Council resolutions and exceed the sole need of defending Iran’s borders,” Jean-Yves Le Drian told the Journal du Dimanche newspaper.

“If not tackled head on, this country risks new sanctions,” he added.

(Source: Reuters)

02 Mar 18. Iran calls on U.S., Europe to scrap nuclear arms, missiles

Iran will not negotiate over its ballistic missiles until the United States and Europe dismantle their nuclear weapons, a top Iranian military official said on Saturday, keeping up the Islamic republic’s tough stance on the issue.

While Iran has accepted curbs on its nuclear work – which it says is for purely peaceful purposes – it has repeatedly refused to discuss its missile programme, something the United States and the Europeans have called for.

“The condition for negotiating Iran’s missiles is the destruction of the nuclear weapons and long-range missiles of the United States and Europe,” Iranian Armed Forces spokesman Masoud Jazayeri was quoted by the state news agency IRNA as saying.

Iran says its nuclear programme is defensive because of its deterrent nature, and that it is not related to Tehran’s 2015 nuclear deal with world powers which led to the lifting of sanctions against the country.

European powers and Iran have started talks over Tehran’s role in the Middle East and will meet again this month in Italy as part of efforts to prove to U.S. President Donald Trump that they are meeting his concerns over the 2015 nuclear deal. (Source: Reuters)

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12 Mar 18. Melrose ups offer for GKN, says latest bid final. Melrose Industries (MRON.L) raised its offer for GKN (GKN.L), the British engineering company which it is pursuing through a hostile takeover, stating that the new bid represented a final offer and would not be increased under any circumstances. Melrose said investors in GKN would under its new offer receive 81 pence in cash for every GKN share they hold, plus 1.69 new Melrose shares, keeping the cash part of the deal the same but upping the equity part from 1.49 new Melrose shares. The suitor raised its offer on Monday after GKN on Friday sought to fend off the bid by striking an alternative $6.1 billion tie-up to merge its automotive business with U.S. company Dana Incorporated (DAN.N). (Source: Reuters)

08 Mar 18. Melrose shareholders and EU approve $9.7bn bid for GKN. Melrose Industries’ (MRON.L) 7bn pound ($9.7bn) hostile bid for engineering group GKN (GKN.L) got a green light from its shareholders and the European Union on Thursday as its takeover attempt enters a critical stage.

British industrial turnaround specialist Melrose said 98.5 percent of shareholders that voted had approved the proposed deal and a plan to issue shares to help finance it, while the European Commission has given anti-trust clearance.

A spokesman for GKN, which supplies parts for the Black Hawk military helicopter and Eurofighter Typhoon, declined comment.

Melrose took its cash-and-share bid directly to GKN investors after the board of the FTSE 100 aerospace and automotive parts group rejected its unsolicited approach in January.

Since then, Melrose’s approach for GKN, a mainstay of the UK’s engineering sector, has drawn intense scrutiny from British politicians amid concerns a takeover puts jobs and GKN’s pension scheme at risk, and could compromise national security.

The battle could intensify in the coming days as under the bid timetable, March 12 is the final day on which GKN can release new financial information to defend itself.

The next milestone is March 19, which is the deadline for Melrose to improve its bid. So far, it has only made one offer.

Melrose’s takeover attempt is complicated by talks GKN is holding with Dana Incorporated (DAN.N) about a potential sale of its auto business. If it agrees a sale to Dana, it could force Melrose to lift is bid.

GKN said earlier on Thursday that under its current turnaround plan, which does not assume a sale to Dana, it expects to generate a recurring annual cash benefit of 153m pounds from the auto division through costs savings and other improvements by the end of 2020.

(Source: Reuters)

08 Mar 18. Brazil’s Embraer posts 82% drop in fourth quarter profit. Brazilian aircraft maker Embraer reported on Thursday an 82 per cent drop in its fourth quarter net income to R$117.2m ($35.2m) versus the same period last year, following impairment charges in its executive jets and defence units. This was below a Reuters’ forecast of $137m. For the whole of 2017, Embraer’s net profits were up 36 per cent, to R$795.8m versus 2016. Revenue in the fourth quarter of 2017 dropped 16 per cent to R$5.65bn, versus the same quarter in 2016, and was also down 13 per cent to R$18.7bn for the full 2017, still within the company’s guidance range of $5.7bn to $6.1bn. Embraer, which is in talks with Boeing over a possible tie-up, also shrunk its 2018 revenue outlook to between $5.4bn and $5.9bn. For months, Boeing and Embraer have been locked in talks of a US-Brazilian tie-up. This could boost sales of the Brazilian aircraft maker’s defence equipment, and could also take the US-based giant into the market for smaller regional jets, following a deal struck by European rival Airbus last year to take control of Bombardier of Canada’s C Series aircraft programme. Negotiations continue, however, the issue of how to deal with Embraer’s nationally sensitive defence division has been a bone of contention, as the Brazilian government retains a golden share.

(Source: FT.com)

08 Mar 18. Investors encouraged to target Australian defence industry. A research house that advises institutional investors has encouraged its clients to invest in Australia’s defence industry.

In its first Responsible Investment Agenda report for 2018, CAER has said the increase in global defence spending and advancements in technology will be felt by defence companies looking to secure lucrative contracts and could provide investors in these companies with long-term gains.

“These increasing demands coupled with rapidly developing technology drive companies to develop and evolve weapons systems,” the report said.

“This means that companies require investors to help fund the development and production of new weapons and weapons systems. Investors in turn seek to invest in companies that have a chance of high value, long-term contracts with governments.”

CAER said Australian companies in the industry looking to win big will have extra support from the government agency Export Finance and Insurance Corporation, as outlined in the recently unveiled Defence Export Strategy.

“Australia is gearing up to support defence industry players to establish Australian bases specialised to deliver military services and goods to international markets. Target regions include close military allies such as New Zealand, the UK, Canada and the US, in addition to countries in the Indo-Pacific region and the Middle-East.

The report cautioned, however, that investing in such companies and technologies come with serious environmental, social and governance (ESG) risks, regardless of the government’s export control policies.

“International military exports might open new markets, but they also open companies and their investors to a range of serious ESG risks. And while the government states “most stringent requirements are put in place through the permits process”26, investors are advised to carefully consider company safeguards,” CEAR warned.

“In particular, companies involved in trading weapons and weapons components might be seen to contribute to uncontrolled arms proliferation that may fuel conflicts and human rights violations.” (Source: Defence Connect)

08 Mar 18. Dassault 2017 net profit nearly doubles. France’s Dassault Aviation SA (AM.FR) said Thursday that its net profit nearly doubled in 2017 and that, factoring in the past year’s market weakness, it expects to deliver 40 Falcon aircraft in 2018.

Net profit at the aircraft manufacturer was 709m euros ($880m) — compared with EUR379m the prior year–boosted by non-operating income. Net sales grew 32% to EUR4.83bn and current operating income was up 20% at EUR343m. Looking into 2018, Dassault Aviation expects to deliver 40 Falcon and 12 Rafale aircraft and says that net sales for the year should be similar to those of 2017. The company proposed a dividend of EUR15.30.

(Source: News Now/Marketwatch)

08 Mar 18. Bioquell profits soar after disposal of legacy businesses.

Financial highlights

Core biodecontamination business revenues up 13% to £28.5m (2016: £25.2m), up 9% at constant currency rates*
Total revenues including the defence business were up 10% at £29.2m (2016: £26.5m), up 6% at constant currency rates*
Gross Profit Margins improved to 52% from 48% in 2016
Pre-exceptional EBITDA** increased 29% to £5.3m (2016: £4.1m)
Profit from operations before exceptional items was up 81% to £2.9m (2016: £1.6m)
Exceptional item of £0.3m relating to profit on disposal of legacy Air Flow business (2016: exceptional items totalled a charge of £1.5m)
Profit before tax was £3.3m (2016: £0.1m)
Basic Earnings per share 11.6p (2016: 1.3p)
Diluted Earnings per share 10.8p (2016:1.2p)
Cash and cash equivalents was £14.6 m (2016: £8.8m)

* expressing revenues in both the period under review and the comparative period at constant exchange rates

** earnings before interest, tax, depreciation, amortisation and exceptional items.

Key developments

Simplified and reduced complexity with the disposal of the legacy Air Flow service business and, subsequent to the year end, related spares business. The full benefit of increased focus on the core biodecontamination business will be felt in the year ending 31 December 2018
Re-built US-based life sciences sales team which generated record levels of revenue in the US in 2017
Encouraging sales growth of the Bioquell Qube aseptic workstation
Completed large Rapid Biodecontamination Service (RBDS) contract with prestigious Middle East hospital

The Group achieved total revenues of £29.2m (2016: £26.5 m) and continues to generate the majority of its revenues from its core Biodecontamination business. A relatively small and historically unpredictable amount is derived from the Defence sector.

For the 12 months ended 31 December 2017, the split of revenues between these businesses was:

Biodecontamination: £28.5m (2016: £25.2m) – a 13% increase year on year and accounting for 98% of Group revenues (2016: 95%); and
Defence: £0.7m (2016: £1.3m) – a decline of 46% and accounting for 2% of Group revenues (2016: 5%).

The Group’s strategy is to focus on generating growth from the core biodecontamination business. As anticipated, defence revenues declined as a proportion of total revenues.

Revenue increases and improving margins at bio-decontamination and containment equipment designer Bioquell sent pre-tax profits soaring, growing earnings per share almost nine-fold in the process.

Total revenues at Bioquell grew 10% to £29.2m in the calendar year, as the Hampshire-based group improved its core bio-decontamination revenues 13% to £28.5m.

Bioquell expanded profit margins from 48% to 52%, helping it push profit from operations, excluding exceptional items, to £2.9m – an 81% rate of growth over the twelve months.

Pre-tax profit came to £3.3m, a marked improvement over the £100,000 posted a year earlier.

Ian Johnson, executive chairman of Bioquell, pointed to a process of continuing to simplify the group and focus on generating top line growth from the core bio-decontamination business.

“The disposal of the legacy Air Flow service activity will enhance our ability to deliver excellent customer service to our core customers. We have invested in sales and marketing resource to maximise our potential in the international Life Sciences and Pharmaceutical market and on further improving financial performance through generating additional recurring revenues,” he added.

Earnings per share rocketed from 1.3p in 2016 to 11.6p just twelve months later. Bioquell shares, having soared 160% since the start of 2017 from below 140p to a recent peak at around 360p, dropped a few pennies on Wednesday morning to 320.00p. (Source: ShareCast)

07 Mar 18. Airbus completes sale of Plant Holdings, Inc. to Motorola Solutions. Airbus SE (stock exchange symbol: AIR) has finalised the sale of Plant Holdings, Inc., which holds the Airbus DS Communications Inc. business, to Motorola Solutions (NYSE: MSI) after receiving the required regulatory approvals. This divestment is part of the portfolio reshaping within the Airbus Defence and Space Division announced in September 2014. Airbus DS Communications is a leading provider in North America of command centre software for fielding emergency calls (911) and citizen emergency notification. It generated revenues of more than US$100m in 2016.

07 Mar 18. State-run defence firm Bharat Dynamics seeks $1.21bn valuation via IPO. Government-owned defence equipment manufacturer Bharat Dynamics Ltd is seeking Rs 7,844. 43 crore ($1.21bn) in valuation through its initial public offering, beginning next week.

The Hyderabad-based public sector unit has fixed a price band of Rs 413-428 per share for the Rs 960.94-crore IPO at the upper end of the band, the company said on Wednesday.

The three-day public issue, which opens on 13 March, will be entirely a secondary market sale. The government, acting as the promoter, will sell 22.45 million shares, or dilute a 12.25% stake in the company, on a post-issue basis.

From the date of listing, Bharat Dynamics will get three years to bring its promoter stake down to 75%, or lower, to meet the Securities and Exchange Board of India norms on minimum public floats.

Bharat Dynamics had filed its draft prospectus with SEBI on 22 January. It received regulatory clearance on 15 February.

The company is the latest among PSU defence and defence-related companies to opt for the capital markets route. Hindustan Aeronautics Ltd had filed its draft proposal with SEBI in October 2017 after moving back and forth on its plans for five years. It had received regulatory nod for its IPO later that month.

Another state-owned firm, Mishra Dhatu Nigam Ltd (Midhani) had filed for an IPO in January and received SEBI nod a month later. The company makes special steel and superalloy products, besides being the only manufacturer of titanium alloys in India. It caters to defence, aerospace, power generation, nuclear and other general engineering industries.

PSU offerings are part of the government’s record disinvestment target of Rs 80,000 crore for the next financial year.

The government has raised Rs 92,476 crore through disinvestment in the current fiscal year so far, higher than the Rs 72,500 crore target. However, more than one-third of that amount, or Rs 36,9015 crore, came from the stake sale in state-run refiner Hindustan Petroleum Corp Ltd to state-run explorer Oil and Natural Gas Corp.

Bharat Dynamics was incorporated in 1970. It is engaged in making surface-to-air missiles (SAMs), anti-tank guided missiles (ATGMs), underwater weapons, launchers, countermeasures and test equipment.

It is the sole manufacturer for SAMs in India, torpedoes and ATGMs. The company is the sole supplier of SAMs and ATGMs to the Indian armed forces. It is also engaged in the business of refurbishment and life extension of missiles manufactured.

The company operates three manufacturing facilities located in Hyderabad, Bhanur and Visakhapatnam. It is setting up two more manufacturing facilities at Ibrahimpatnam (near Hyderabad) and Amravati in Maharashtra. The proposed units will be used to manufacture SAMs and very-short-range air defence missiles (VSHORADMs), respectively.

The company had an order book of Rs 11,164 crore as on 31 October 2017.

SBI Capital Markets, IDBI Capital Markets and Securities, and Yes Securities are merchant bankers managing the IPO. (Source: Google/vcircle.com)

07 Mar 18. Rolls-Royce profits beat expectations despite engine problems. Shares jump after engineering group reports healthy cash flow and further cost cuts. Rolls-Royce said the costs of repairing problems with the Trent 1000 and 900 jet engines would peak this year. Rolls-Royce powered through severe problems with its Trent 1000 jet engine to report a strong underlying improvement in profits and cash last year. Shares in the UK’s flagship engineering company jumped 13 per cent in early trading as investors concluded the company was well on the road to recovery after the instability caused by a string of profit warnings and three years of restructuring. Underlying pre-tax profits were significantly ahead of expectations, rising from £813m to £1.1bn in 2017. Free cash flow also beat forecasts, jumping from £100m to £273m. This was after Rolls-Royce had to absorb the escalating costs of repairing problems with turbine and compressor blades on the Trent 1000 engine, which powers Boeing’s 787 Dreamliner. Rolls-Royce also took charges for problems on the Trent 900 engine flying the A380 superjumbo. In total, the cash cost in 2017 came to £170m. Warren East, chief executive, acknowledged that the costs of repairing the two engines were expected to increase to some £340m this year. This would be the peak, he said, with costs falling by about £100m in 2019 and further in future years. The problems, which have forced some airlines to ground aircraft, were expected to be fully resolved by 2021-22, although the situation remained “dynamic”, he said. However, Mr East insisted that despite these higher than expected costs the group still aimed to deliver its target for sustainable free cash flow of about £1bn by around 2020. The strong performance contrasts sharply with 2016, when the company posted its largest ever pre-tax loss. This included a big hit from revaluing hedging contracts, as well as fines for a string of corruption charges. Mr East warned that the revaluation of financial instruments had had a big impact on the group’s swing back into pre-tax profit in 2017, which was £4.9bn compared with 2016’s £4.6bn pre-tax loss. Just as 2016 reported profits had been depressed by a £4.4bn non-cash hit to the value of hedging contracts, 2017’s reported profits had been boosted by a £2.6bn non cash gain. “It is actually just the result of an accounting measure,” he said. Nevertheless, there was cause for encouragement at the operational level, he said. The group had been able to hold to its cash flow target despite the extra engine costs because working capital had been well controlled across the company. In addition, Rolls-Royce had secured annual cost savings of some £200m by the end of 2017, at the higher end of its three-year target. Civil aerospace, power systems and even the troublesome marine business made underlying improvements in profitability. Nuclear and defence saw declines, however, in part due to higher research and development spending on the UK’s prospective programme for small nuclear reactors. Recommended Rolls-Royce engine costs expected to hit £300m in 2018 US authorities reveal charges in Rolls-Royce bribery scheme Rolls-Royce considers sale of commercial marine unit Mr East said the efforts to bring down costs had not yet finished, with a new plan to cut a layer of management already under way. However, there was as yet no detail on the level of cost savings to be made or the number of jobs affected. The cost reduction would be “significant” Mr East said, promising more details at an investor day in June. The group also reported pro forma figures for 2017 in line with a new accounting standard which changes the way Rolls-Royce can recognise revenues from engine sales and service. The accounting standard comes into force this year. Under IFRS 15, underlying operating profit would have been £321m on sales of £13.6bn. This compares with the results reported for 2017 of operating profits at £1.2bn on sales of £15bn. Based on the IFRS15 numbers, Mr East also gave guidance for 2018. The civil aerospace division — which incurred a £330m loss at the underlying operating level in 2017 — is expected to reduce the deficit by a third. Margins in defence would be some 250 basis points lower, and returns in power systems would be stable. Group operating profit was forecast to be between £300m and £500m. And in a forecast which will reassure investors that the promise of £1bn free cash flow in 2020 is still on track, Rolls-Royce said it intended to deliver £450m of cash next year, with a £100m margin either way. Reported revenue came in at £16.3bn, up 6 per cent on underlying basis. Underlying earnings per share rose from 30.1p to 40.5p. (Source: FT.com)

07 Mar 18. Babcock International update. On the face of it, shares in outsourcer Babcock International (BAB) are remarkably cheap. On the basis of the shares’ next-12-month forecast price/earnings (PE) ratio, they are about the cheapest they’ve been for the past decade (see chart below). Were the PE to retrace its way to even the bottom quarter of its 10-year range, shareholders would be looking at 37 per cent upside. And were the shares to rerate to midway through the range, the gain would be 53 per cent. But shares are rarely this cheap without a reason. And the fact that short interest in the shares has shot up since the start of last December from below 2 per cent to almost 7 per cent at the time of writing, suggests many investors are prepared to bet the reason behind the shares’ apparent cheapness is a good one.

There are two key concerns. The first is that the UK government’s focus on cost-cutting will reduce the workload for Babcock, especially given its sizable exposure to defence. Indeed, the shrinking of the group’s order book since midway through last year has added ballast to these fears, despite commensurate growth in Babcock’s bid pipeline.

The other worry for shareholders is whether Babcock could be destined to go the same way as other outsourcing peers that have issued swingeing profit warnings and been forced into rescue rights issues. However, the parallels between Babcock and woes felt by the rest of the sector could prove misplaced given the specialist nature of its work. By focusing on jobs where expertise rather than price is a key determinant of bidding success, Babcock looks less at risk of taking on long-term contracts on uncommercial terms. That’s important because underbidding is what has proved a bane for other outsourcers. On this front, some comfort can also be taken from the fact that Babcock’s management doesn’t expect any noteworthy impact from a new accounting rule governing the way companies report income from long-term contracts. Other outsourcers have reported damaging negative restatements associated with the new accounting regime.

Recent trading has provided cause for both some concern and some reassurance – on balance, probably more of the latter. In the third quarter of its financial year to the end of March, Babcock reported slightly disappointing turnover but improved margins, meaning the company expects to meet full-year profit expectations. The order book slide has shown some signs of petering out. What’s more, the company expects to meet expectations for cash generation, which represents an important reassurance given poor cash conversion is regarded as a potential canary in the coal mine in a sector that has been plagued by cash crunches.

The current substantial negative sentiment towards the shares may be slow to dissipate, and investor angst may yet be substantiated, resulting in earnings forecast downgrades that would undermine the value argument. However, while there may be clear risks, based on recent trading, the value case currently looks too extreme to ignore. (Source: Investors Chronicle)

07 Mar 18. More funds spurn nuclear arms, financing still strong – report. The number of pension funds and asset managers that refuse to invest in nuclear armament makers appears to be growing, although financing is still abundant, an annual survey by anti-nuclear campaigners said on Wednesday.

The report, entitled “Don’t bank on the bomb”, found that 22 financial institutions comprehensively prevented any involvement in nuclear weapon producing companies in 2017, up from 18 in 2016 and 13 in 2015. The new names included Norway’s Government Pension Fund, Australia’s Future Super, U.S.-based fund manager Green Century and Denmark’s MP Pension, which manages pensions for Danish academics.

There were a further 41 institutions that excluded nuclear weapon producers from their investments, but whose policy was not all-inclusive, up from 36 in 2016 and 40 in 2015.

The report was published by Dutch Christian campaign group PAX and the Geneva-based International Campaign to Abolish Nuclear Weapons (ICAN), which won the Nobel Peace Prize in 2017.

“By divesting from nuclear weapon producers, we can make it harder for those that profit from weapons of mass destruction and encourage them to cut the production of nuclear weapons from their business strategies,” ICAN’s executive director Beatrice Fihn wrote in the introduction to the report.

The report found that 329 banks, insurance companies, pension funds and asset managers from 24 countries invested significantly in the top 20 firms involved in nuclear weapons, such as Boeing (BA.N), Lockheed Martin (LMT.N), Northrop Grumman (NOC.N) and General Dynamics (GD.N).

Of the $525bn invested, $81bn more than a year previously, more than half came from the top 10 investors, all U.S.-based, led by Blackrock, Capital Group and Vanguard, the report said.

The report examined firms involved in producing key components for the nuclear arsenals of France, India, Britain and the United States.

The maintenance and modernisation of nuclear forces in other nuclear-armed countries, listed as China, North Korea, Israel, Pakistan and Russia, was done mainly or exclusively by the government, it said. (Source: Reuters)

06 Mar 18. Rolls-Royce says 2018 to be impacted by engine repair costs. British engine-maker Rolls-Royce guided that 2018 results would be impacted by costs related to carrying out repairs on some aero-engines, but it remained on track to meet its financial goals for 2020.

After reporting a forecast-beating profit for 2017, Rolls said that for the current year, group operating profit could, at the lower end of expectations, decline.

But the company said it remained on track to meet its goal of generating free cash flow of 1bn pounds by around 2020.

Rolls-Royce said that it would take a hit of about 340m pounds to account for the cost of carrying out repairs on existing engines, primarily the Trent 1000 engine which is installed on the Boeing 787 aircraft.

The company has said that 400 to 500 Trent 1000 engines were affected by problems with components wearing out earlier than expected, needing extra inspection and maintenance. Air New Zealand, British Airways, Virgin Atlantic and Japan’s ANA Holdings are amongst those affected.

For 2018, Rolls forecast group underlying operating profit of about 400m pounds, give or take 100 m pounds. At the lower end of expectations that would represent a decline from its level of 321m pounds.

That guidance was issued under a new accounting standard, which changes how the company books earnings on long-term contracts.

Under the previous accounting standard, Rolls-Royce reported underlying pretax profit of 1.071bn pounds for 2017, beating a consensus forecast of 878m pounds, boosted by the delivery of more aero-engines and from its power systems unit which makes large diesel engines.

(Source: Reuters)

06 Mar 18. GKN says has received many approaches since Melrose bid. UK engineering company GKN (GKN.L) has received many approaches and had conversations with other companies since buy-out firm Melrose Industries (MRON.L) launched a takeover bid, GKN Chief Executive Anne Stevens said.

GKN Finance Director Jos Sclater, speaking to British lawmakers alongside Stevens, said GKN’s share price showed that investors did not think the Melrose bid would be successful on its current terms. (Source: Reuters)

06 Mar 18. GKN has ‘lost its way’ due to bad management, Melrose tells MPs. Buyout specialist’s proposed takeover of engineer has sparked political backlash. Melrose Industries, which is pursuing a hostile £7.4bn takeover of GKN, has told a committee of MPs that the engineer is a “great British business” that has “lost its way” due to bad management. The buyout specialist said it would take power away from GKN’s head office and put it back in the hands of operational managers in order to drive improvements, if its bid is successful. Melrose’s proposed acquisition of the automotive and aerospace parts supplier has sparked a political backlash, with fears over what would happen to the company, which comes with a 259-year heritage. This led MPs to call the top executives of both companies to give evidence about the future of GKN before the Business, Energy and Industrial Strategy select committee on Tuesday morning. The takeover tussle has in effect turned into a contest over which management team can convince shareholders it is capable of unlocking GKN’s potential. Melrose’s chief executive Simon Peckham described GKN as a “concentrated business model of sucking things up to the centre and running everything from the centre”. However, earlier during the session on Tuesday morning, GKN’s chief financial officer Jos Sclater described the battle as one of “short-term capitalism versus long-term capitalism”. Melrose acquires companies and seeks to improve them before selling on, typically only holding them for three to five years. One of Melrose’s criticisms of GKN has been that it has prioritised sales growth over profit margins. Mr Sclater said the company wanted its business to “outgrow” its pension scheme, which is in deficit. GKN chief executive Anne Stevens said it had received “many approaches” since the Melrose bid, but declined to provide details saying the conversations were confidential. She also refused to say how long GKN had been in discussions with the US group Dana, which the FT last week revealed is in talks about acquiring GKN’s automotive business. Such a deal could scupper Melrose’s approach. (Source: FT.com)

05 Mar 18. Lockheed to reinvest some tax savings in R&D, education. The world’s largest defense contractor is looking to reinvest some of its savings from U.S. President Donald Trump’s tax cuts into research and development as well as internal education funds.

Lockheed Martin CEO Marillyn Hewson pledged during a media event Monday that the “landmark” tax cut legislation would have “a significant positive impact on our corporation.” The tax bill was signed into law by Trump in December, with large companies such as Lockheed expected to greatly benefit.

Tax funds will increase “investment in research and development and capital expenditures by a combined $200m,” Hewson said, while also pledging to increase funding for Lockheed’s Ventures investment fund by an unstated amount. The Ventures fund is used to invest in high-tech firms outside of Lockheed’s core business.

Reinvestment of tax savings will also be used to expand “education offerings and worker training,” as well as an expansion of a program designed to assist employees with tuition for higher education, the CEO added. It will also increase corporate giving toward science, technology, engineering and mathematics education programs.

It is unclear exactly how much money Lockheed will have saved through the tax legislation, but analyst Byron Callan of Capitol Alpha Partners estimates the company will gain at least $500-$600m.

While it’s possible some or all of those moves were already underway before the tax bill was passed, Lockheed’s senior vice president of government affairs stressed they were a direct result of the new legislation.

“It is all new. We have been going through a very deliberate, focused, internal discussion about, now that this is reality, and it actually began before the actual bill passed, as to what opportunities does this present,” Robert Rangel said. “Certainly the Venture fund, the increased capitol expenditures, some of our plans to accelerate STEM funding, etc., all of that is new and additive, not something that we already planned.”

Rangel also described the increase for the Ventures fund as being “significant, relative to where we are.”

Neither Hewson nor Rangel spelled out where the R&D investments would be going, but the company CEO did highlight four technology sectors that the company would be looking to beef up in the coming years: hypersonic weapons, lasers, artificial intelligence and electronic warfare.

Given the amount of funding for the R&D boost, those funds will likely improve, rather than transform, the company’s previous investments in those areas. (Source: Defense News Early Bird/Defense News)

06 Mar 18. France’s Thales says expects to exceed medium-term targets. France’s Thales said on Tuesday it expects to exceed medium-term targets that it set itself four years ago, as higher defence spending offsets slower telecom satellite markets.

Europe’s largest defence electronics group said 2017 sales rose by 6.1 percent, or 7.2 percent on an underlying basis, to 15.795bn euros (14.1bn pounds).

Earnings before interest and tax (EBIT), or operating profit, rose 14 percent to 1.543bn euros for a margin of 9.8 percent, up 0.7 percentage points. Thales also increased its dividend by 9 percent to 1.75 euros.

Analysts were on average expecting annual operating profit of 1.47 bn euros on revenue of 15.595bn euros, according to Thomson Reuters I/B/E/S estimates.

Thales said its order intake fell 9 percent to 14.92bn euros in 2017, but was broadly unchanged after stripping out an Indian order for fighter jets in 2016.

For 2018, Thales expects an order intake of around 15.5bn euros and growth in underlying sales of 4-5 percent.

Operating profit is forecast to come in at 1.62-1.66bn euros. The forecasts exclude the impact of its planned acquisition of digital security firm Gemalto, which Thales said was on track to close in the second half of 2018.

Thales added it now believed it can exceed a target for average organic sales growth of more than 5 percent in 2016-2018, and said its 2018 operating margin should exceed a forecast of 9.5-10 percent for 2017/18 that it previously set. (See Features: Thales 2017 Full-Year results)

(Source: Reuters)

05 Mar 18. Sparton Announces Termination of Merger Agreement with Ultra. Sparton Corporation (NYSE: SPA) today announced the termination by Sparton and Ultra Electronics Holdings plc of their July 7, 2017 merger agreement.

During the review of the proposed merger by the United States Department of Justice (the “DOJ”), the United States Navy (the “Navy”) expressed the view that instead of the parties proceeding with the merger, each of Sparton and Ultra should enhance its ability to independently develop, produce and sell sonobuoys and over time work toward the elimination of their use of Sparton’s and Ultra’s ERAPSCO joint venture for such activities. The staff of the DOJ then informed Sparton and Ultra that it intended to recommend that the DOJ block the merger. The parties expected that the DOJ would follow this recommendation and seek an injunction in court to block the merger. As a result of the view of the Navy and the position of the DOJ, Sparton and Ultra determined that it was in the best interests of the parties to proceed to terminate the merger agreement. Sparton and Ultra also understand that the DOJ intends to open an investigation for purposes of evaluating the parties’ ERAPSCO joint venture. Based on historical practice, Sparton anticipates that the Navy will assist in funding Sparton’s transition to independently developing, producing and selling sonobuoys.

The Board of Directors of Sparton continues to support Sparton’s management and employees in their implementation of improvements in Sparton’s operations and financial performance, their ongoing conduct of Sparton’s business and their focus on delivering superior products and services to Sparton’s customers around the world. In addition, as a result of the termination of the merger agreement with Ultra, Sparton will seek to re-engage with parties that previously expressed an interest in acquiring all or a part of Sparton and that are in a position to expeditiously proceed to effect such a transaction. There can be no assurance that any such transaction will occur. (Source: BUSINESS WIRE)

05 Mar 18. Melrose should seek pensions regulator approval for GKN takeover – lawmakers. Melrose Industries (MRON.L) should seek clearance from Britain’s pensions regulator in its bid for UK engineering company GKN (GKN.L), as its support for GKN’s pension scheme would likely be weaker than existing arrangements, lawmakers said on Tuesday.

The fate of deficit-ridden pension schemes after company takeovers is a concern in Britain following the collapse of department store chain BHS in 2016.

Melrose, whose business model is to buy engineering companies, improve their margins and resell them, has made a 7bn pound ($9.7bn) hostile bid for GKN, and has said it will add 150m pounds to the GKN pension scheme.

“Melrose claims an impeccable record in protecting pension rights. The surest way to demonstrate its commitment in this case would be to apply voluntarily for clearance,” Frank Field, chair of the parliamentary work and pensions committee, said in a statement.

The pensions regulator currently only has powers to force an acquiring company to strengthen support for a takeover target’s pensions scheme if the bidder asks for clearance.

“We have been concerned that the increased leverage involved in the proposed takeover by Melrose is likely to have a detrimental impact on covenant,” Lesley Titcomb, chief executive of the regulator, said in a letter published by the committee, adding the regulator had “strongly encouraged Melrose to make a clearance application”. (Source: Reuters)

06 Mar 18. MPs call for UK to block Melrose takeover of GKN. Politicians from three parties have written to business secretary as backlash grows. Sixteen MPs from three UK political parties have written to business secretary Greg Clark calling for him to block the proposed hostile takeover of GKN by Melrose and prevent a “world class” industrial company from being “dismembered”. The letter is an escalation in the political backlash against the £7bn bid for the British aerospace and automotive company. It comes as the UK’s Pensions Regulator expressed concerns that GKN’s pension scheme could be weakened by the takeover and follows a decision by Moody’s, the rating agency, to downgrade its outlook on GKN from stable to negative. Moody’s said GKN’s plan to spit the business would make it “challenging” for the company to retain an investment-grade credit rating. Executives from both GKN and Melrose will be grilled on Tuesday by MPs on the business select committee. Those appearing before the committee include Anne Stevens, chief executive of GKN, and Christopher Miller, co-founder and executive chairman of Melrose. Other senior politicians have already raised concerns about the proposal, from defence secretary Gavin Williamson, to Liberal Democrat leader Vince Cable and Labour shadow business secretary Rebecca Long-Bailey. Their primary worry is that Melrose tends to buy companies, hold them for several years and then sell them on — potentially in pieces. The letter, written by Labour MP Jack Dromey and Tory MP Rachel Maclean, says that GKN is “one of the most prominent” engineering companies in the UK and its third largest. Recommended GKN faces fight of its life in hostile bid battle Jonathan Ford: Carillion and GKN offer lessons in danger of short-termism Hostile bid for GKN shows folly of board musical chairs The 16 MPs say they are writing to Mr Clark because they all have a GKN plant or one of its suppliers in their constituencies. “We believe the takeover should not succeed,” they write. They argue that GKN is not in a “turnround situation” and instead produces good results in most of its operations, with pre-tax profits up by 125 per cent in its last results. “A takeover of GKN by Melrose is highly likely to mean the break-up of GKN, and the selling on — and possible disappearance — of several of its constituent important components including its aerospace, driveline, powder metallurgy and additive divisions,” they write. The MPs call on Mr Clark to use section 58 of the 2002 Enterprise Act, which allows the government to intervene in mergers if they raise public interest concerns such as — in this case — national security. However, some officials in Whitehall have suggested there is scant evidence that GKN’s defence work would justify this. The MP signatories include Layla Moran of the Lib Dems, former Tory cabinet minister Andrew Mitchell and Andrew Gwynne, shadow communities secretary. GKN employs 58,000 people of which 6,000 work in the UK. Andy Street, the Tory mayor of the West Midlands, expressed concerns last week about the future of a company “of huge importance” to the region. Melrose Industries last week reported its second statutory loss in two years. But Mr Miller has argued that GKN would gain significantly from becoming part of “an enlarged £10bn UK industrial powerhouse”. His company said on Monday: “It is GKN that is planning to dismember this business precipitously. They have said they would sell the powder-metallurgy business and are in talks to sell automotive in short order, which we believe is a hasty and risky move and do not support.” There have also been concerns about the implications of any Melrose deal for the 32,000 members of the GKN pension scheme, which is in deficit. In a letter published on Tuesday, the pensions regulator said the increased leverage involved in the proposed takeover by Melrose was “likely to have a detrimental impact” on the covenant — the ability of the employer to meet its pension obligations. “Melrose claims an impeccable record in protecting pension rights,” said Frank Field, chair of the select committee. “The surest way to demonstrate its commitment in this case would be to apply voluntarily for clearance. I think pensioners would be surprised to know that a pension scheme could be offloaded to someone clearly less equipped or inclined to support it without the regulator having a say.” (Source: FT.com)

05 Mar 18. US halts Qualcomm takeover showdown on national security grounds. Broadcom slams it as a ‘blatant, desperate act by Qualcomm.’ The US government has ordered chipmaker Qualcomm to delay an upcoming shareholder meeting by a month, while it investigates whether a proposed takeover by a Singapore-based rival would put national security at risk. The intervention comes as Qualcomm shareholders were set to vote on whether to replace six of its directors on Tuesday with candidates put forward by Broadcom, which is seeking to force through a $142bn takeover of the company. The US Treasury department, which leads inter-agency regulator the Committee on Foreign Investment in the United States, said in a statement that a 30-day delay of the vote “will afford Cfius the ability to investigate fully Broadcom’s proposed acquisition of Qualcomm”. Broadcom responded saying it was “disappointed” by the decision. It added: Broadcom was informed on Sunday night that on January 29, 2018, Qualcomm secretly filed a voluntary request with Cfius to initiate an investigation, resulting in a delay of Qualcomm’s annual meeting 48 hours before it was to take place. This was a blatant, desperate act by Qualcomm to entrench its incumbent board of directors and prevent its own stockholders from voting for Broadcom’s independent director nominees. Qualcomm declined to comment. The delay is the latest escalation in a tensely fought hostile takeover battle, as Qualcomm’s management look to maintain the company’s independence. Recommended Broadcom’s pursuit of Qualcomm sparks unease in Europe Qualcomm gets top investor’s backing to reject Broadcom bid US lawmakers call for review of Broadcom bid for Qualcomm In recent weeks, US lawmakers have become more vocal about their concerns about a takeover of Qualcomm. Some have urged the Trump administration to open an investigation into Broadcom’s bid, arguing it would be “deeply concerning” if a foreign company took control of a US group through a proxy fight without first gaining the approval of the Cfius. Broadcom was previously a US-based company but it redomicled to Singapore to gain tax benefits following a takeover in 2015. The company’s chief executive Hock Tan went to the White House in early November to publicly declare in front of President Donald Trump its plans to move back to the US. The move came just a day before its plans to bid for Qualcomm, in what would be the largest tech deal ever, were revealed. “It should be clear to everyone that this is part of an unprecedented effort by Qualcomm to disenfranchise its own stockholders,” Broadcom said. Broadcom has argued that its takeover of Qualcomm should not be scrutinised by Cfius as it will have finished reincorporated in the US by the end of its fiscal second quarter, which is May 6. At that point, it says, the deal would not be a foreign takeover. Broadcom’s hostile takeover bid for Qualcomm raised data protection concerns among European lawmakers as they fear the Singapore-based chipmaker could gain control of sensitive EU citizens’ data. (Source: FT.com)

05 Mar 18. Ultra Electronics Holdings plc (“Ultra” or “the Group”) Preliminary Results for the Year Ended 31 December 2017.

KEY POINTS

Results in line with revised November 2017 guidance
Continued strong operating cash performance with cash conversion of 97% (2016: 92%)
Robust balance sheet with net debt of £74.5m at year end (2016: £256.7m)
Sound operating margins of 15.5% (2016: 16.7%)
Order intake strong, with momentum late in the year; 2018 opening order cover of 62% (2017: 56%)
Sparton merger terminated; £134m share buy-back to be implemented

Douglas Caster, Executive Chairman, commented: “2017 was a challenging year in the Group’s core defence markets and, as previously reported, Ultra experienced delays to a number of programmes and contracts relatively late in the year. Overall this contributed to the underlying operating profit decline of 8.4%. The Group continued its focus on managing costs and efficiencies within the businesses, which enabled sound operating margins to be achieved. The Group’s cash performance was strong, with a cash conversion of 97%, and follows a similar performance in 2016. Order intake in 2017 for delivery in future years was also strong, in part reflecting the expected upturn in the defence market cycle.

Ultra entered 2018 with good visibility. The Group had an opening order book of £914m⁺, which excludes over £1.5bn of expected mid-term orders from long-term positions, and an opening order cover on expected 2018 revenues of over 62%. As previously disclosed, the Board’s expectations remain for the Group to make modest progress in underlying revenue and operating profit at constant currencies in 2018 after investing for the future through increased R&D and capital expenditure.

The proposed merger with Sparton was initiated following Sparton’s decision to put itself up for sale in April 2016. We are disappointed with the outcome of the antitrust review that has led to Sparton’s and Ultra’s decision to mutually terminate the merger process. This decision means that the relationship between Ultra and Sparton continues for now as joint venture partners through the ERAPSCO JV. Ultra has supplied the US Navy with sonobuoys since the 1940s, whether through its predecessors, ERAPSCO or other affiliates. With our world-leading technology in sonobuoys, Ultra expects to continue to serve this important customer for years to come. Through the share buy-back announced today, we intend to return the net proceeds of the previous equity raise to shareholders, whilst preserving balance sheet strength.

Ultra has extensive intellectual property, strong market positions, differentiated technologies, talented people and a strong balance sheet. The Group’s core strengths include world-leading positions in many of its specialist capabilities. It has positions on many long-term platforms and programmes, significant exposure to the strengthening US defence budget, and growing demand for advanced defence technologies. This supports the Board’s confidence in the Group’s future.”

(1) before the S3 programme, amortisation of intangibles arising on acquisitions, impairment charges, adjustments to contingent consideration net of acquisition and disposal related costs, and the Oman contract termination related costs. IFRS operating profit was £61.5m (2016: £89.7m). See Note 2 for reconciliation.

(2) before the S3 programme, amortisation of intangibles arising on acquisitions, impairment charges, fair value movements on derivatives, unwinding of discount on provisions, defined benefit pension curtailment gain and interest charges, adjustments to contingent consideration net of acquisition and disposal related costs, the Oman contract termination related costs and, in the case of underlying earnings per share, before related taxation. Basic EPS 66.2p (2016: 82.8p). See Note 9 for reconciliation

⁺ Under the new revenue recognition standard IFRS 15 which is applied from 1 January 2018

02 Mar 18. Ultra Electronics terminates $234m Sparton deal. British defence contractor Ultra Electronics said it terminated the $234m (169.7m pounds) acquisition of Sparton Corp following an unfavourable anti-trust review outcome from the U.S. Department of Justice.

Ultra Electronics also said underlying operating profit fell to 120.1m pounds ($165.5m) for the year ended Dec. 31, from 131.1m pounds a year earlier, bogged down by lower defence orders in the UK. (Source: Reuters)

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Odyssey is an independent corporate finance firm which advises on acquisitions, business sales, management buy-outs and raising finance, typically in the £5m to £100m range. We have extensive experience in the niche manufacturing sector with our most recent completed deal being the sale of MacNeillie to Babcock Plc. Details can be seen at: http://www.odysseycf.com/case-study-macneillie/

As a result of this and related projects we have developed relationships with buyers and funders looking to acquire or invest in the sector. We would be happy to share further insights into the sector and to carry out reviews of businesses whose shareholders are considering an exit, acquisition or fundraise.

The review will include:

* Valuation

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There is no charge for this review.

If this is of interest we would be happy to meet at your convenience.

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MILITARY VEHICLE NEWS

Web Page sponsored by MILLBROOK

Tel: +44 (0) 1525 408408

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09 Mar 18. Adelaide company in line to service the German Army fleet. An Adelaide company has launched a bid to service thousands of armoured personnel carriers (APC) used by the German Army with its innovative technology.

Magill-based Supashock has put forward its passive air-assist dampers technology as part of its bid to secure a multimillion-dollar contract. Under the bid, its damper technology would be fitted to the current Fuchs 2 APC, a vehicle manufactured by LAND 400 Phase 2 bidder Rheinmetall Defence and in-service across the German Armed Forces.

Supashock specialises in designs, development and manufacture of shock absorbers, as well as state-of-the-art active suspension for automotive applications to improve performance, safety and ride quality on motorsport vehicles and military vehicles. Through comparative testing, Supashock’s suspension technology is already improving the mobility of Rheinmetall’s fleet of logistics vehicles, while enhancing on-road safety and reducing shock and vibration.

Rheinmetall Defence Australia managing director Gary Stewart said the Supashock technology would increase the capability and safety of RMMV’s Fuchs APC in demanding on and off-road environments.

“We are strong believers in the technology that Supashock has developed as it will provide a step change in the performance of our vehicles and the Fuchs project is an exciting stage in our partnership,” Stewart said.

“This will deliver real benefits for the Australian economy through the accelerated generation of local jobs, while creating substantial export opportunities for Supashock. We see the close co-operation between the companies as a platform for an integrated approach towards the global expansion of Supashock into the military and commercial vehicle markets.”

Managing director and founder of Supashock Oscar Fiorinotto said securing the Fuchs project is a boon for South Australia’s industry that is still suffering from the wind-down of the automotive industry.

“This is an example of how we can drive future growth and continue to create highly skilled, enduring jobs in South Australia while delivering significant performance improvements to customers in export markets,” Fiorinotto said.

Rheinmetall approached Supashock in December last year with a range of issues presented by the existing Fuchs family of vehicles, seeking a proposal to improve the vehicle ride quality and handling characteristics.

Supashock is developing a system that will deliver improvements in tactical mobility, dynamic handling – particularly roll control and damping of pitch oscillations – vehicle and weapon station stability, load carrying capacity and future growth potential.

Under the program overseen by Rheinmetall and its truck subsidiary Rheinmetall MAN Military Vehicles, Supashock with move through three phases. Phase 1 will include development and simulation of passive air-assist damper, revised springs and redesigned bump stop to achieve the desired improvements in vehicle performance. The redesign will integrate Supashock passive dampers, while retaining the existing Fuchs 2 suspension geometry.

Supashock’s partnership with Rheinmetall was formally cemented last year when the companies signed an agreement in July, which saw the defence giant acquire 49 per cent of the Adelaide company.

Rheinmetall is working with Supashock to form a key part of its global supply chain to export its technology, along with its other LAND 400 Phase 2 partners Heuch, Tectonica Australia, Cablex, Direct Edge, G&O Kert, Hilton Manufacturing, Hoffman Engineering, Nezkot Precision Tooling and Engineering, Plasteel and Redarc. (Source: Defence Connect)

06 Mar 18. US Defense Logistics Agency to Enhance Industry Engagement (UPDATED). Faced with the need to meet growing demand for the products and services it provides, the Defense Logistics Agency plans to strengthen its ties with industry. DLA is tasked with managing a massive global supply chain for the U.S. military and other agencies. Last year alone, it provided more than $30bn worth of goods and services to warfighters, including repair parts, clothing and consumables such as fuel and food. It oversees nine supply chains and supports more than 2,300 weapon systems.

Over the past six to eight months, there has been “an increasing demand that we’re seeing within DoD … across all the different commodities that we support,” said Michael Scott, deputy director of logistics operations, in an interview with National Defense.

He attributed the uptick to the push for enhanced military readiness that is being spearheaded by Secretary of Defense Jim Mattis and other Pentagon leaders.

While most of the supply chain is running smoothly, “there’s always somewhere our source is having difficulties or we’re having trouble finding a source, or [intellectual property] has been sold to another party and we don’t know who that is,” said Matthew Beebe, DLA’s director of acquisition.

To deal with some of the procurement challenges it’s facing, the agency plans to publish a new industry engagement plan in March.

Beebe declined to delve into the specifics of the plan prior to its finalization and publication, but he previewed some of its key themes.

It recognizes the value of enhancing existing relationships with industry, he said. “Communication and interaction is a central part of it,” he said. “A lot of it is going to recognize the value of their feedback and … the fact that we need to understand that feedback and adapt as appropriate, which I wouldn’t say that we have historically been particularly good at.”

Additionally, the plan will include a push to look for new business partners that might not already be on the agency’s radar. It will also address the need for DLA and industry to work together as partners to mitigate the risks that threaten the supply chain and military readiness, he noted.

As part of this effort, the agency seeks to improve its “market intelligence” to have a better picture of the vendor landscape. Rather than waiting until problems emerge, DLA officials want to know ahead of time where capabilities reside, how the commercial market is responding to demands and adjusting their manufacturing patterns, what interests may be domestic versus offshore, and what is being bought and sold, Beebe said.

The agency deals with a lot of aging weapon systems, he noted.

“With that comes issues where maybe we haven’t sourced things for a long period of time, intellectual property may have been moved around [or] sold to other companies or other interests,” he said. “That’s where we end up struggling a little more.”

This trend is most prevalent in the aviation community where sole sourcing is common, he noted. Some companies are scooping up intellectual property rights for key items and then jacking up the price when they are most urgently needed by the Defense Department.

“We at times reverse engineer the items to develop those specifications so that we can work with some other manufacturer or work on the competitive market,” he added. Having better awareness of IP ownership across industry would mitigate the problem by enabling the agency to plan ahead, he noted.

In recent years, the agency has taken steps to increase the speed of contracting. It cut the amount of internal reviews and regulations by more than 90 percent, Beebe said.

It now takes on average about 50 days for items to be put on contract during the source selection process. Many of them are on contract within a single day or a couple of weeks, he noted. That is a marked improvement relative to how quickly the process moved several years ago, he added.

Ninety-two percent of the contracts that DLA awards are done in a competitive market, and about 80 percent of the dollar value of its contracts are competitive, Beebe said. Approximately 75 percent of them are long term.

“In many cases those are multiple award long-term contracts so that we have some redundancy or options built in where if one [supplier] is struggling to meet demand there is another or others who can potentially step up,” he said. That is especially important when dealing with a commodity that has a very large readiness impact or surge requirement.

Many contracts are indefinite delivery/indefinite quantity. Others are focused on “outcome-based” solutions, he said.

“Rather than saying I need a menu of things that I can buy when I need them, it’s more of: how are we going to support a service maintenance depot so that every time the mechanic reaches into a bin whatever he needs is ready and available?” he said. “We’ve built contracts and strategies with incentives to provide that sort of outcome.”

For contracts with prime vendors, there is often an expectation that DLA is going to order some number of pre-priced items, but the contractor is tasked to come up with sourcing and delivery solutions so that as requirements change they are able to adapt quickly, he noted.

“We also do a lot of work through … different contingency contracts when it’s something that we need to turn on quickly but we don’t need day to day,” Scott said. “We are going to end up doing more and more of that.”

In fiscal year 2017, DLA did business with approximately 12,000 companies, about 80 percent of which were small businesses, Beebe said.

“We get about 2,500 new small businesses each year that come in sometimes only for a single award and then drift away again, and then others get repeat awards and become a future partner of ours,” he said. “Establishing relationships with that community is the key to how we look at positioning ourselves to avoid those [supply chain] risks or concerns.”

Many items that the agency buys, such as fuel, food and medical supplies, have a robust commercial market. Beebe noted that DLA continues to look for ways to make it easier for companies to do business with the agency.

“Are we putting unique requirements on that causes industry to shy away because it doesn’t fit their business model? Is there some way we can adapt to take greater advantage of the competition that may exist in the private sector?” he asked.

The agency is investing in new technologies to enhance situational awareness and improve the efficiency of its vast logistics network. DLA’s Strategic Plan 2018-2026 — which is separate from the forthcoming industry engagement plan — highlighted the need for predictive technology.

By combining big data analytics, automation and artificial intelligence, the agency can ensure sustained supply chain visibility and communication between interested parties, the document said.

“Through employment of trend analysis and predictive algorithms, DLA is able to consistently predict and position the right logistics solution on time,” it added.

Scott said the agency is continually looking for ways to refresh its IT capabilities. “We absolutely see that as one of the keys to the agility and the success of our agency and what we do.”

Scott and Beebe’s offices are jointly sponsoring the development of new business decision analytic tools to help DLA’s workforce gain better insight into different suppliers, pricing, quality of items and so forth. The agency plans to deploy the technology soon, he said.

The Defense Department expects to use advanced computing and artificial intelligence, among other so-called “third offset” capabilities, to stay ahead of peer adversaries and improve business practices. Scott said DLA will continue to invest in such tools as the technology advances.

“We definitely will be staying in sync with all of that,” he said. “We have other areas where we’re looking to see just how far the big data and machine [learning] can go with [office of the secretary of defense] reform initiatives. We’re looking for things that can be further automated and our operations made even more efficient.”

Three-D printing is another advanced technology that seems promising for the logistics community, he said. It could enable warfighters and others to print spare parts or other items at the point of need instead of having them delivered through the traditional supply chain.

“There’s no doubt in my mind it will become a major method of sourcing things in the future,” Scott said.

It has already been used on a limited basis to print some of the less complex items in the inventory, he noted. However, for some items it can take a long time to create each part and it can also be costly, he noted.

The technology needs to improve when it comes to speed and reliability before it can be more widely employed, he said.

“I’ve got to be able to have a technical data spec that … I can hand off to anyone or to DoD servicemen on a ship or wherever they might be, so they can print that part and it’s consistently produced” the way that it needs to be, Scott said. “That is another big challenge in that area. We’re working through it but we’re still a little early for some of that more complex stuff.”

Those aren’t the only issues surrounding 3D printing that must be resolved, Beebe noted. DLA will also have to decide what business model it will use in the future.

“Are we buying the data and then printing ourselves? Are we buying the printing services? Is it being printed at one location and still shipped, or is the signal being sent to a distant printer?” he asked.

“It’s not only the technology but it’s also then the business model of how to make it work.” (Source: glstrade.com/NDIA)

08 Mar 18. First batch of LAND 400 vehicles to be built in Europe. The first 25 LAND 400 Phase 2 vehicles will be built in Europe under both BAE Systems’ and Rheinmetall’s bids for the project to support the tech transfer.

Speaking to Defence Connect, Rheinmetall Australia managing director Gary Stewart said Rheinmetall’s decision to build the first 25 Boxer CRVs in Europe was based around not having an established factory in Australia and to enhance its technology transfer program.

“We’re doing that A, because we don’t have a factory here yet, we have to build it, but secondly it’s an instrumental part of our technology transfer program,” Stewart said.

“So, one of the key capability benefits to Army and one of the key industrial benefits to the Australian economy is that we set up an enduring industrial capability in Australia that can not only manufacture this equipment, but also design and improve it over life.”

Under Rheinmetall’s proposal for the project, Australians would be placed into teams in Germany to learn the necessary skills and then bring this back to Australia for the remaining 200 vehicles.

“So, what we do is we’ll do the first two variants, finish their designs in Germany, but we’ll actually have Australian engineers, logisticians, manufacturing staff and procurement staff embedded in the German teams. So, they learn the product, they learn the technology, they learn how to build it, how to buy it, how to test it and then they come back.”

The German company’s proposed Military Vehicle Centre of Excellence (MILVEHCOE) will be built in Brisbane while the first vehicles are being manufactured overseas. The MILVEHCOE was announced by Rheinmetall last July and will act as a sovereign industrial capability for the continuous design, manufacture, export and support for military vehicles, turrets and tactical systems.

“Whilst that’s happening, we’re building and commissioning the Military Vehicle Centre of Excellence, we’re bringing on and qualifying the Australian industrial network that will supply the material into that manufacturing and we’ll transfer the tools and systems,” said Stewart.

“So, at the end of the first couple of years, you’ll see all of the vehicles then being manufactured and tested and delivered from the Military Vehicle Centre of Excellence in Brisbane.”

As a centre of excellence, the MILVEHCOE would be the focal point for the LAND 400 combat vehicles, LAND 121 logistics vehicles and other complex defence projects. Under the LAND 121 Phase 3B program, Rheinmetall is delivering more than 2,500 logistics trucks to the Australian Army.

Rheinmetall has already partnered with several Australian SMEs for the project, including Melbourne’s Heuch, Cablex and Tectonica Australia, Burnie-based Direct Edge, Brisbane-based G&O Kert, Melbourne/Brisbane-based Hilton Manufacturing, Perth-based Hoffman Engineering, Melbourne-based Nezkot Precision Tooling and Engineering, Adelaide-based Plasteel and Adelaide-based Redarc.

BAE Systems’ Brian Gathright also told Defence Connect, should they be successful in securing the project, the first 25 vehicles would be built overseas as part of its plans for technology transfer.

“A total of 200 vehicles produced in Australia. The first of types to make sure we get the manufacturing baseline, and this is critical to that tech transfer piece, will be done in Europe to make sure we have a strong manufacturing base that we can transfer into Australia,” Gathright said.

“We will manufacture 200 vehicles here in Australia to a tune of over $1.25bn. We’ll employ somewhere on the order of 50-100 SMEs depended upon the final content breakdown. That content breakdown will occur across the nation. There will obviously be a focal point within Victoria and South Australia, where there’s a strong automotive and defence background around armored vehicles. But equally we have companies from New South Wales, Queensland, Tasmania participating in our LAND 400 solution.”

Rheinmetall’s Boxer CRV is up against BAE Systems’ Patria AMV-35, which would be built in Victoria. A decision on the project is expected in the coming weeks. (Source: Defence Connect)

07 Mar 18. What kind of vehicle design can the Marines get for $50,000?

Spend long enough in a conversation on war, and eventually someone will unearth an old quote from Gen. Robert H. Barrow, the former commandant of the Marine Corps: “Amateurs talk about tactics, but professionals study logistics.” Supply and resupply is the infrastructure that makes all the rest of war possible. So, in a curious twist, to figure out the logistics of future wars, Local Motors launched a software platform called, appropriately enough, “Launch Forth.” Launch Forth is for amateurs to try their hands at a major logistical puzzle.

Specifically, the Launch Forth platform is partnering with the United States Marine Corps to offer “design challenges” to meet logistical needs. From a press release:

The Modular Logistics Vehicle (MLV) project will result in the design of a new modular vehicle system that meets a range of logistical missions. Through concept and technical design, challenge participants will work to design a new vehicle that allows for modular adjustments to improve the Marine experience and their corresponding operations. Use cases could range from personal movement, mechanical repair, construction and administrative support.

The competition is in two stages, with a now-closed concept design phase and a technical design phase open until March 25th. There’s prize money involved: $10,000 to be divvied up among seven design challenge winners, and more than $40,000 for technical prize winners. In addition, the Marine Corps will select a winning design April 23rd and then move on to proof-of-concept and prototyping stages.

If all this sounds very Silicon Valley, that’s because it is.

Launch Forth is San Francisco-based and bills itself as “a SaaS (software as a service) platform for product design powered by a robust community of designers, engineers and solvers.” In essence, it’s a way to crowdsource designs, rather than commissioning them. When people submit their entry in the contest, they do so with the understanding (at least clicked through on the submissions page) that Local Motors gets rights to the winning designs. (Silicon Valley, incidentally, *loves* Barrow’s quote about logistics).

Contest-based rights transfer aside, what is the Marine Corps hoping to get from the Forth? From the contest brief (emphasis theirs):

Similar to the first Design Challenge, the objective of this Challenge is to give Marines operating on base improved functionality and experience while conducting day to day logistical operations. This new vehicle will incorporate modular adjustments to improve the Marine experience and their corresponding operations. New modules could be designed and customized on-base as new needs and use cases become discovered. (NOTE: None of these use cases are in combat. Please do NOT include weapons on the design.)

The vehicle can be no longer than 11 feet 8 inches, no taller than 6 feet, no wider than 5 feet 4 inches. In addition, at least part of the vehicle must be 3D printed. It can weigh no more than 2,000 pounds empty, and 4,000 pounds fully loaded. And it must have a minimum 10 inch clearance. Beyond all that, the design must contain four distinct modules to accommodate tasks like Personnel Transport (room for six occupants and four bags) or Administration (a solar panel power supply, as well as everything needed to run a computer, a printer, and a label maker, as well as other requirements), as well as specified construction and mechanical support modules needs. All the modularity feeds directly into another major requirement: it should be possible for two marines to change out modules within 15 minutes.

If the concept and technical design stages are successful, and the Marine Corps finds the skeleton of a design that can ultimately perform multiple missions in the field, then the exercise will have been a steal: two months of concept design time, $50,000 in total prize money, and a new wealth of designed concepts to tweak and manage in the future.

But it’s important to remember that, despite this being a Local Motors project and a vehicle design competition, the partnership isn’t really about building a vehicle. This is really about the Marine Corp contracting with a software company, to then coordinate and reward crowdsourced designs, to get new concepts ready for possible fielding and delivery by someone else down the road.

All of this matches a slew of recent Pentagon efforts, from sending a single Marine to adapt an open-source drone design to Marine needs, or the entire reason for the Defense Innovation Unit Experimental. If the Pentagon is to adapt to the pace of technological change, and to field new machines with anything like the rapidity needed, it’s likely that someone needs to figure out a new approach, a new way to go from “here is a problem we have” to “here is the technology that meets that need.” To do that, the Pentagon is increasingly turning to the expertise of amateurs, with technology companies in the Bay Area happy to play the middlemen. (Source: Defense News)

07 Mar 18. U.S. Army to position more armored vehicles in Europe, speed upgrades to equipment at home. Four years after the Army rolled its last tanks out of Europe, the service has sent back a brigade’s worth of equipment to have on stand-by and plans to add a second set this year.

The Army’s budget plans support not only that build-up in Europe, but also modernizing those armored brigade combat teams and the ones at home, Lt. Gen. John Murray, the deputy chief of staff for program development, said Tuesday.

“Our plan now is to fill out not one, but two BCTs in what we call pre-positioned stock in Europe, with the most modern tanks, Bradleys, [armored multi-purpose vehicles], [joint light tactical vehicles],” he said.

The vehicles, housed in Belgium and the Netherlands, are in addition to the brigade’s worth of equipment and personnel that are continually in Europe, as part of a heel-to-toe rotation that began in 2016.

“It’s this realization that we’re back to an era of nation-state potential conflict,” Murray said.

If tension with Russia comes to a head, the Army will be able to send two brigades of personnel to link up with the pre-positioned stocks, quickly putting the equivalent of an armored division on the ground.

The 2018 and 2019 budgets also set aside funds for upgrading armored BCTs across the Army.

“Two years ago I would have told you that we were modernizing one ABCT every 2.5 years,” Murray said. “Today I will tell that that over the next five years, we’re going to do one per year.”

By speeding up improvements to combat systems, he added, the Army makes progress toward fielding its next-generation combat vehicle, a top priority of the coming Army Futures Command.

“I’m convinced, the faster we upgrade the equipment we have, the quicker we can make a move to new production,” Murray said. (Source: Defense News)

07 Mar 18. Paramount Group, the African-based global defence and aerospace company, and its joint venture in Kazakhstan, Kazakhstan Paramount Engineering (KPE), announced that the Ministry of Defence of Kazakhstan is in the final stages of the evaluation of the Barys 8×8 combat vehicle ahead of acceptance into service by the country’s armed forces. The Barys (Snow Leopard in the Kazakh language) which is based on Paramount Group’s Mbombe 8 represents the pinnacle of land system technologies and was developed to meet the increasing demand for multi-role, high mobility and mine hardened platforms.

The winter trials included day and night firing and the Barys 8×8 vehicle was equipped with a Shipunov 2A42 30mm automatic cannon and a 7.62mm machine gun jointly manufactured by Kazakhstan’s ‘KAE’, which manufactures electro-optic defence equipment and Turkish defence company, Aselsan. Winter trails of Barys 8 started during early December 2017 with a series of intensive factory acceptance tests to finally evaluate and optimise the complete weapon system, platform and turret. The trails were conducted at a Military tank test polygon in central Kazakhstan.

Johan Delport, Director of the KPE factory in Astana said: “The most severe winter conditions prevailed during testing, similar to conditions found in Siberia. During this period the temperature dropped to -45 Celsius with a chill factor of minus 60 Celsius, resulting in serious challenges to man and machine while conquering up to 750mm of soft snow.

“During such conditions every smallest detail and subsystem could be evaluated extensively. Items such as glass heating for de-ice and de-misting, engine heating before starting, batteries, cabin heating, electrical functions, steering, and suspension have been successfully tested. The vehicle performed exceptionally throughout the trials.”

The design of this vehicle allows for the fitment of a very large array of weapon systems. This enables the vehicle to be customised for armed forces all around the world. The weapon system has been evaluated during both day and night firing sessions, static as well as firing on the move using the stabilisation mode. The 30mm canon which has ranges beyond 2000 meters has been demonstrated successfully under the severe ambient conditions. The 8×8 combat vehicle and other Paramount armoured vehicles will be produced at the 15,000m2 KPE armoured vehicle factory in Astana – the largest armoured vehicle factory in Central Asia and the first defence manufacturing plant with this scale of capability in Kazakhstan. It has a capacity of more than 200 vehicles per year for the production of the full range of Paramount’s armoured vehicles with bespoke modifications for local conditions.

Ivor Ichikowitz, Founder and Executive Chairman of Paramount Group said: “Building our combat vehicles through local partnerships in Kazakhstan shows that we can produce highly advanced technologies anywhere in the world. One of the most significant trends in today’s defence industry is the increasing requirement of sovereign nations to develop their own defence equipment. Building defence industrial eco systems, inside our customer countries, through strategic alliances have been the cornerstone of our industrial philosophy. Our partnerships have driven innovation, technology transfer, local manufacturing, skills development and jobs around the world.”

The Barys 8 is the winterised version of Paramount’s Mbombe 8 that employs an innovative new form of construction to give unprecedented levels of protection, while keeping profile to a minimum. The 8×8 also draws on the company’s experience of designing the highly advanced Mbombe family of armoured vehicles.

The Mbombe family of 4×4, 6×6 and 8×8 vehicles share over 80% of common components to reduce through life costs. This commonality offers significant cost benefits to armed forces due to greater efficiencies and significant savings in maintenance and logistical support.

In addition to the Barys, KPE has been ramping up production and deliveries of the Arlan (the localised version of Paramount Group’s Marauder APC) to the armed forces in Kazakhstan. In November 2017 Paramount Group delivered more Arlan armoured vehicles to Kazakhstan’s Special Forces. The latest delivery of the Arlan will see the vehicles in operation with the Ministry of Defence, Special Forces and other law enforcement agencies.

Key features of the Mbombe 8/Barys 8 include:

Gross weight of 28 tonnes and kerb weight of 19 tonnes
Payload of 9 tonnes which covers weapon system, ammunition, crew and supplies
Powered by a 6 cylinder engine turbo charged diesel engine
Six speed automatic transmission
Max speed of 110km/h
Operating range: 800km
High levels of ballistic and mine protection: ballistic protection: STANAG 4569 Level 3+ and blast protection: STANAG 4569 Level 4a and 4b
Wide range of turrets and weapon stations can be integrated
The cooling systems and driveline have been tested and proven in winter conditions of -55 Celsius and desert conditions of +55 Celsius
Large internal volume due to position of powerpack

06 Mar 18. Avenger UGV logs first customers. NATO countries Bulgaria and Romania have ordered a number of Avenger UGVs, just a year after Med-Eng unveiled the new system.

Six of the platforms have been purchased and are designed to fill the gap between small and large UGVs, Andrew Miles, sales director, Latin America and Canada at Med-Eng told Shephard at the Security and Counter Terror Expo (SCTX) in London.

Miles could not specify how many platforms are destine to be used by each country.

The UK Ministry of Defence (MoD) is also believed to be interested in procuring the platform in addition to potential customers in Europe, the Middle East and Central America.

The robot, designed and manufactured by ICP NewTech, has a reach capability of 2.5m, is capable of lifting up to 50kg and climb stairs with an incline of 50°.

‘The concept behind the vehicle is that the MoD and organisations around the world have had to carry a large and a small robot,’ Kieran Nolan, director of engineering at ICP NewTech explained to Shephard.

‘So, with the Avenger we’ve developed a small machine with the capability of a large one.’

When stowed the system has a length of 1m, height of 50cm and width of 45cm, enabling it to be transported in an armoured vehicle.

The vehicle’s dextrous arm also provides a maximum horizontal reach of 1.8m and an endurance of four hours and a line-of-sight operational range of over 1km.

Nolan described the new ROV as a ‘generational leap’ in UGV capabilities, explaining that a family of systems based on the Avenger is currently in development, which will provide a range of configurations that meet different mission requirements and applications.

‘The communications systems and software are all developed, now it’s about continuing to develop the exoskeleton,’ he said.

New gearing and track sub-systems allow the 95kg vehicle to move at a speed of up to 8km/h across a range of terrains including sand, mud, snow and shallow water.

The Avenger is also capable of running on wheels, depending on mission and environment specifics and has been engineered to offer a future-proof system that is IOP compliant to enable the use of third party sensors, in addition to the integrated sensor that provides CBRN detection capabilities.

Currently the ROV is configured with three HD cameras that provide operators with 360° situational awareness, two communication feeds and can be operated via a standard game controller.

‘We are also going to be bringing out next generation control software, making the system more user friend,’ according to Nolan. (Source: Shephard)

06 Mar 18. Kazakhstan puts Barys through its paces. Kazakhstan has finished putting the Barys 8 8×8 infantry fighting vehicle through a harsh winter testing programme, Jane’s has been told. During the trials, which began in December 2017, the vehicle undertook a range of factory acceptance tests in conditions that saw the temperature drop to -45C and with a wind-chill effect of -60C, while also having to contend with soft snow of up to 75cm in depth.

“During such conditions, every smallest detail and subsystem could be evaluated extensively. Items such as glass heating for de-ice and de-misting, engine heating before starting, batteries, cabin heating, electrical functions, steering, and suspension have been successfully tested. The vehicle performed exceptionally throughout the trials,” Johan Delport, director of the KPE factory in Astana, said.

The vehicle is now in the final stages of evaluation by the Kazakh Ministry of Defence, prior to being accepted into service with the country’s armed forces.

The Barys 8 features the Nefer remotely operated weapons system (ROWS) developed by Turkey’s Aselsan, and was trialled with a Shipunov 2A42 30 mm automatic cannon developed by KBP Instrument Design Bureau, and a 7.62 mm machine gun. The weapons and development of the turret were carried out in collaboration with Kazakh industry through Aselsan’s joint venture in the country, Kazakhstan Aselsan Engineering (KAE). The trials featured day and night firing of the weapon systems, both under static and on-the-move conditions. The Nefer was first unveiled at the IDEF 17 trade show in Turkey in 2017, and uses a low-profile design, with the ROWS flatter and wider than other designs. (Source: IHS Jane’s)

06 Mar 18. WFEL completes Australian Land 155 first tranche

Bridging delivery. Under the Land 155 Enhanced Gap Crossing Capability Project, the Australian Defence Force (ADF) has taken delivery of the first scheduled tranche of WFEL’s rapidly-deployable military bridges, including Dry Support Bridges and Medium Girder Bridges. This project milestone includes some of the first configurations of the Dry Support Bridge launching vehicle on a fully-armoured Rheinmetall MAN Military Vehicle (RMMV) 45m 10 x 10 chassis. The Dry Support Bridges (DSBs), capable of carrying over 120 tonnes, have been delivered following extensive trials at the UK’s Millbrook Proving Ground, to verify both off-road and on-road capability and in accordance with a series of demanding mandated Specifications, Audits and Project Reviews determined by the Australian Government. Also supplied for Land 155 are WFEL’s double-storey, link-reinforced Medium Girder Bridge systems (MGBs), which can span up to 49 metres and which will be supplemented by additional portable Pier and Span equipment, allowing bridges of up to 76 metres to be constructed.

As the bridges provide temporary infrastructure and will be used in the ADF’s Combat Support and Disaster Relief operations, both DSB and MGB bridging systems are being delivered complete with walkways, to allow the separation of vehicular traffic from pedestrians. WFEL’s comprehensive Integrated Logistics Support package is also being supplied, to cover through-life support for the bridges.

The adoption and acceptance of the latest variant of the DSB by Australia further helps to support WFEL’s position in respect of ‘Project Tyro’, the Assessment Phase program contract that it won to look at replacing the UK’s ageing BR90 systems nearing their end of service.

The DSB – which can be launched by just 8 personnel within 90 minutes, is already in use with the US, Swiss and Turkish armed forces and has been proven in the field as temporary infrastructure in Iraq and Afghanistan – fulfils the demanding requirements for the Tyro Project through a proven and validated track record, providing an off-the-shelf, low risk solution to the UK MoD’s wide-gap tactical bridging requirements. The UK MoD, just like the Australian Defence Force, is already familiar with WFEL’s bridging systems, having been a user of the modular Medium Girder Bridges since the 1970s.

WFEL is also currently fulfilling further DSB orders for the U.S. Army – an experienced user of the DSB since 2003 – in support of its European Deterrence Initiative. This supply of additional Dry Support Bridges will bring the U.S. Army’s stockholding up to almost 120 systems.

Ian Wilson, Chief Executive of WFEL, commented, “WFEL’s long-standing relationship with the Australian Defence Force began over 30 years ago, when they chose our Medium Girder Bridges. We are delighted to continue to support them today, this time not only with further MGBs, but with a significant capability enhancement through the purchase of the latest mechanised DSB. The adoption of the DSB not only provides the ADF’s Manoeuvre Commanders with the ability to cross significant wet or dry gaps quickly and efficiently, it allows a level of inter-operability with an ever-growing user base.

“This significant and growing installed base of DSB equipment, allied to our fully-operational production line, ensures that WFEL’s customers have a high level of confidence not only in our products but also in our continued through-life support and spares availability.”

WFEL will complete final delivery of the ADF’s bridges by September 2018.

02 Mar 18. US Army receives first bids for new Mobile Protected Firepower tank. The US Army has received bids for its Mobile Protected Firepower (MPF) programme; BAE Systems and General Dynamics Land Systems (GDLS) have been confirmed as participants.

The army hopes a new MPF platform can quickly deploy with relatively low logistics demand but enough protection and firepower – likely a light- to medium-tank – to ensure the infantry’s freedom of action.

BAE Systems submitted a written proposal on 1 March that “leveraged the army’s earlier investment in, and made improvements on, the type-classified M8 Armored Gun System [AGS] — as well as other previous programmes — into a fully integrated MPF system”.

The M8 AGS was type classified in 1995, but was cancelled the following year; it was intended to replace M551 Sheridan light tanks used by the 3rd Battalion, 73rd Armor of the 82nd Airborne Division. In 2015 BAE Systems suggested it would bid for MPF with a platform based on the M8.

The company built a vehicle that is now going through internal testing, and it plans to submit that platform to the army by 2 April for official government testing, a BAE Systems spokesperson told Jane’s.

GDLS submitted a bid for MPF too, a source said.

In October 2016 GDLS unveiled a medium-weight tracked vehicle demonstrator, called the Griffin, which meshes elements of the turret and the 120mm cannon from an M1A1/M1A2 Abrams main battle tank with the company’s Ajax Scout Specialist Vehicle. However, the source told Jane’s that GDLS’ bid for MPF has evolved beyond the Griffin.

Other bids may have come as well – SAIC with ST Kinetics and CMI Defence were understood to be interested in the project – but only BAE Systems and GDLS had been confirmed as of this writing. (Source: IHS Jane’s)

02 Mar 18. US Army receives BAE proposal for MPF vehicle development and test. The US Army has received a proposal from BAE Systems for the development and testing of the Mobile Protected Firepower (MPF) vehicle to be used by the Infantry Brigade Combat Team (IBCT).

The new combat vehicle is being developed to provide the IBCT with a protected platform that would be capable of facilitating improved precision firepower combined with the ability to move rapidly in a wide range of terrain conditions.

BAE Systems Combat Vehicles business development director Jim Miller said: “Our MPF vehicle is the result of more than 30 years of research and development to build a rapidly deployable, light combat vehicle designed specifically to support the light infantry.”

The fully integrated MPF system is based on the enhancements made on the US Army’s type-classified M8 Armored Gun System and other previous programmes.

The latest, modern low-risk vehicle will help provide the IBCT with a highly survivable, lethal, mobile and transportable system.

Miller added: “Our solution is built around the IBCT’s needs and the evolving threats they face.

“It is as deployable as the IBCT’s other equipment and is easily sustained and maintained with assets already organic to the IBCT.

“Our infantry fights in close terrain, urban areas, and remote locations, so a smaller, lightweight vehicle that still provides superior protection and lethality was essential to the design of our MPF offering.”

BAE Systems has developed and constructed an MPF vehicle, which is currently undergoing internal testing.

On 2 April this year, the company intends to submit the system to the US Army in order to carry out additional US Government testing as a part of the bid assessment process. (Source: army-technology.com)

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Millbrook, based in Bedfordshire, UK, makes a significant contribution to the quality and performance of military vehicles worldwide. Its specialist expertise is focussed in two distinct areas: test programmes to help armed services and their suppliers ensure that their vehicles and systems work as the specification requires; and design and build work to upgrade new or existing vehicles, evaluate vehicle capability and investigate in-service failures. Complementing these is driver and service training and a hospitality business that allows customers to use selected areas of Millbrook’s remarkable facilities for demonstrations and exhibitions.

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NEW TECHNOLOGIES, NETWORKS AND COMMUNICATIONS

Web Page sponsor Oxley Developments

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07 Mar 18. Preparing for the internet of battlefield things. Even as developers are struggling with how to integrate the various pieces of the emerging internet of things, the federal government is investing millions for a five-year brainstorming project to explore how to develop and secure connected devices on the battlefield .

The Army Research Lab recently awarded $25 million to the Alliance for Internet of Battlefield Things Research on Evolving Intelligent Goal-driven Networks (IoBT REIGN) to develop new predictive battlefield analytics.

“It is a really big project,” said Tancréde Lepoint, computer scientist and cryptographer at SRI International and a member of the IoBT REIGN team. In all, Lepoint said, 20 researchers from six universities and SRI are involved in the project, along with an expected 10 researchers from the Army Research Lab.

According to an SRI announcement, “The IoBT will connect soldiers with smart technology in armor, radios, weapons, and other objects, to give troops ‘extra sensory’ perception, offer situational understanding, endow fighters with prediction powers, provide better risk assessment, and develop shared intuitions.” The project will also explore development of collaboration between autonomous agents and human warriors on the battlefield.

“One scenario could be to have smarter ammunition,” Lepoint said. Smarter ammunition would allow commanders to configure it to target only, say, condemned buildings. “If you’re tempted to fire on something that is not in the category, it would not fire,” he said. Similarly, demolition charges might be configured not to go off if sensors detect that humans are nearby.

“It is not about [having devices] pulling the trigger instead of the human,” Lepoint said. “It is about letting the human have a better understanding of the full environment.”

Lepoint’s primary work with the group is on securing what is becoming an increasing complex battlefield using a combination of data-driven inductive learning and deductive reasoning techniques.

“We need to think about adversaries from the design of the algorithm and from everything that we develop,” he said. “We need to focus on how to design algorithms to resist malicious adversaries.”

In addition to encrypting communications, he said, the team wants to develop algorithms that can detect when malicious data is being inserted. “We need to account for the fact that there will be conflicting and deceptive data received by those algorithms, so let’s design them so that if you get enough data you will still be able to carry out your mission,” Lapoint said.

Lapoint acknowledged that the project is an unusual one in that it doesn’t have any specified deliverables. “This is a collaborative research alliance,” he said. “It’s brainstorming over five years.”

In addition to researchers from the Army Research Lab and SRI, the project includes the University of Illinois at Urbana-Champaign, Carnegie Mellon University, University of California, Berkeley, University of California, Los Angeles, University of Massachusetts and University of Southern California. The funding covers the first five years of a potential 10-year effort. (Source: Defense Systems)

07 Mar 18. DOD outlines vision JEDI cloud contract. The Defense Department shed some light on its much-anticipated Joint Enterprise Defense Infrastructure (JEDI) cloud acquisition at a March 7 industry day, and outlined a surprisingly short timeframe for finalizing a multi-billion, single-award contract.

DOD officials hope to have a final request for proposals out by early May, and to make an award before the end of the September. Chanda Brooks, the contracting officer for JEDI, stressed that the timeline was “notional,” but was equally emphatic that DOD is intent on moving quickly.

The morning event was high on enthusiasm from government officials, including acting DOD CIO Essye Miller, DOD Chief Management Officer John Gibson and Under Secretary of Defense for Acquisition and Sustainment Ellen Lord, but scant on specifics. Additional details came around mid-day, when the draft RFP was posted.

In keeping with the tight schedule, comments on that draft are due by March 21.

Several industry representatives at the event said they were skeptical that seven months was sufficent for such a massive acquisition. Brooks, however, said the in-house expertise that DOD now has in the Defense Digital Service and other components changes the equation.

“Often times, there are procurements where the technical requirement is ill-defined,” Brooks said. “That is not this case with the JEDI procurement. … We are able to access advanced technical expertise that the government typically does not have access to.”

Navy Capt. David McAllister, program manager for DOD’s Strategic Capabilities Office, also stressed that cross-component collaboration. SCO already is working with DDS and the Defense Innovation Unit Experimental on plans for JEDI implementation.

Streamlined security and infrastructure management, migration of core DOD services, data management and advanced analytics should all come online in fiscal 2019, he said. More sophisticated capabilities will be added in 2020.

“The three offices are really orchestrating a variety of projects,” McAllister said. “Over the course of several years we’re going to try to fully validate the capabilities within JEDI and see what we can achieve to deliver warfighting advantage and back-office efficiencies.”

JEDI will cover Infrastrucure as a Service and Platform as a Service offerings, both non-classified and (eventually) classified.

Brooks emphasized that DOD needs technical feedback from industry over the next two weeks, with the hope that more input earlier on in the process could help the contract come together faster.

“We believe we have compiled a very good foundation for the JEDI cloud infrastructure procurement,” she said. “However, we do need industry feedback on several elements of the draft solicitation.”

Industry discussion following the event also focused on whether smaller cloud entities could meet the DOD’s needs. The solicitation lays out a demanding “gate evaluation criteria” that proposers must meet to even be considered in the competitive stage of the procurement.

Lord and Brooks stressed that the single-award solicitation is a fully open and competitive process, where “multiple sources are capable of satisfying the DOD’s technical requirements.”

The JEDI effort is “being held to a higher standard and must more scrutiny than other contracts of similar size,” Lord said.

But not everyone was convinced. John Weiler, executive director of the IT Acquisition Advisory Council, a public-private partnership, told FCW the presentation seemed very geared toward Amazon, making solicitation a no-contest competition.

“The articulation of the requirement and how this thing would be delivered is specific to Amazon. It is not a truly competitive procurement,” he said.

DOD officials tried to address those concerns in a media call following the event. Tim Van Name, deputy director for the Defense Digital Service, told reporters the JEDI solicitation was about the proposal that best fits DOD’s needs. “We have no favorite,” he said.

DDS General Counsel Sharon Woods added that while the contract would be a single award, that did not mean it would go to a single vendor. DOD is not telling JEDI proposers how to assemble teams, she said.

When pressed further on how many firms the DOD team believes could technically deliver on the solicitation, Van Name said, “We don’t know — and we won’t know until we receive proposals from industry.”

(Source: Defense Systems)

07 Mar 18. Motorola Solutions Announces New Public Safety Broadband Device, High-Power Mobile Radio and Mobile App Solutions. Motorola Solutions (NYSE: MSI) continues to transform communications for first responders who use land-mobile radio (LMR) and dedicated long-term evolution (LTE) networks. Today, the company announces three new solutions for enhanced mission-critical communications including an app to share digital evidence.

“Motorola Solutions is focused on mobilizing and connecting first responders in the moments that matter regardless of network or device,” said Bruce Brda, Motorola Solutions executive vice president of Products & Solutions. “We are dedicated to growing our technology portfolio for the long-term co-existence of LMR and LTE networks, helping them work better together for years to come. We are also building software apps that are secure and easy to use by first responders and that connect automatically to Motorola Solutions’ suite of public safety solutions.”

These technologies will be showcased March 7-8 in the Motorola Solutions booth #2539 at the International Wireless Communications Expo (IWCE) 2018, held at the Orange County Convention Center in Orlando.

LEX L11 Mission-Critical LTE Device

The LEX L11 mission-critical LTE device is built for global broadband networks including FirstNet in the United States. It is designed specifically for the demanding environments experienced by first responders. With the LEX L11 and the power of broadband, first responders can access secure apps for increased situational awareness.

The LEX L11 can also be paired with an APXTM two-way portable radio, combining the power of Motorola Solutions’ mission-critical ASTRO® 25 LMR network with public safety broadband. Ideal for officers who need to remain discreet, this pairing allows them to communicate covertly on their radio while using the LEX L11. Together, these technologies are a powerful combination of communications to help improve the safety of first responders and the people they protect.

Capture Mobile Camera App

With the new Capture app, first responders can easily capture image, video and audio evidence with the LEX L11 or Android and iOS-based smartphones. All content is securely uploaded to Motorola Solutions’ CommandCentral Vault digital evidence management solution for storage and later use.

From the moment of capture, evidence is protected from tampering, and the chain of custody is verifiable so devices do not need to be subpoenaed. Metadata is also added automatically to organize evidence within CommandCentral Vault.

APX 8500HP Mobile Radio

The APX 8500HP is a high-power version of Motorola Solutions’ interoperable all-band Project 25 mobile radio. This 110 watt radio delivers more than twice the power of the APX 8500 for VHF and UHF Range 1 bands. It is ideal for use in rural areas or during disaster response where limited infrastructure might be available. With all-band functionality, first responders from different agencies can easily communicate with each other, regardless of what frequency band they are using.

Resources

LEX L11 Mission-Critical LTE Device
Capture Mobile Camera App
CommandCentral Vault
APX 8500HP mobile radio

(Source: BUSINESS WIRE)

07 Mar 18. Chemring launches radio initiator system, LORIS. Chemring Technology Solutions has launched a new Long-range Radio Initiator System (LORIS) at the Security and Counter Terror Expo (SCTX) in London.

LORIS, a high energy radio initiator system supports a range of military and special forces missions including EOD, IEED and demolitions.

Speaking to Shephard, Rob Hall, head of product strategy and marketing at Chemring, claimed the new system provides a higher energy output than any existing product and offers the unique ability to configure multiple Remote Initiation Devices (RIDs) for specific mission requirements.

‘Up to ten RIDs can be paired with a single receiver and selectively fired during a mission… these RIDs provide ten times the energy of previous systems’ he said.

A combination of wire output and shock tube RID variants can be deployed at the same time, enabling greater flexibility than previous systems that were commonly pre-configured at the point of manufacture.

‘The system is easy to use, clear and simple. It is easy to set up and makes it clear to the user that it has been set up correctly,’ Hall explained.

Designed with ease of use in mind to reduce the training burden and the risk of misinterpretation, the digital receiver uses icons that demonstrate the live status of all deployed RIDs.

LORIS features a securely coded two-way digital communication radio system with a line-of-sight operating range of 10km. In addition, the handheld receiver is secured using a safety key that prevents inadvertent transmission of arming and firing commands.

The new system also utilises digital spread spectrum technology to reduce the threat of detection and jamming by adversaries, John Leech, product manager at Chemring, told Shephard.

‘Digital spread spectrum technology makes it more difficult to detect the system, more difficult to jam it, making it effectively EM immune in contested environments,’ he said.

The launch of LORIS is part of a two-phase project, with an upgrade programme already in place. Phase two of the project is expected to be focused on software and firmware upgrades, with possible minor changes to hardware.

According to Leech these future upgrades could include the integration of GPS capabilities that would enable all deployed RIDs to be digitally mapped, as well as the ability to set time delays, providing the user with greater control and flexibility.

Hall anticipates demand for the system to be worldwide, with interest emanating from North and South America, Europe, Africa and Asia.

(Source: Shephard)

06 Mar 18. The Army’s other network challenge is hiding in plain sight. Following several months of intense focus to modernize the Army’s tactical network, the service is now turning its attention toward the enterprise, strategic network. While work is still ongoing to fix issues related to the tactical network the Army’s chief information officer said an in-depth mission analysis of the enterprise network has begun.

“That work has started. Initial mission analysis is done,” Lt. Gen. Bruce Crawford, said at the Army Signal Conference hosted by AFCEA in Springfield, Virginia March 3. “Our goal is to write the strategy by the fall, the overarching strategy.”

Despite being in the initial stages of the study, Crawford shared one of the conclusions the Army has come to thus far: “we believe that the issues associated with the strategic network have literally been masked over the last 15 years.”

Crawford acknowledged that it wasn’t as if this was unbeknownst to the Army, but the depth and scope of the issues have been masked because of lacking demand not the systems.

Crawford noted the system was not put through the paces in Iraq and Afghanistan during the counterinsurgency fight of the last decade and a half the same way it would be in Europe in a high-end operating environment.

Crawford pointed to a few items included in the scope of the effort: cloud, network convergence shrinking down 62 disparate networks, Joint Regional Security Stack migration and identity management.

“You can pick one of many of what I call enterprise software optimization,” he said. He added that the service spends about $3bn alone over a five year period on enterprise software sustainment.

This effort will be a bit different from that of the tactical network modernization just given the nature of the strategic network.

“You think solving the problems of the tactical network were hard, in terms of developing a strategy,” Crawford said. “Try taking someone in the enterprise like you can a radio, or like you can another mobile device that you can in the tactical, like some of our Nett Warrior capability, you can show them that. ‘Here are our tactical devices.’ I don’t know about you all but I’ve had a hard time…pick[ing] up the enterprise and take it to somebody – hey here’s what the enterprise looks like.”

“This is going to be a little bit different in terms of laying out the depth and scope,” he added. (Source: C4ISR & Networks)

07 Mar 18. Two world leaders in mission-critical (MC) communications, Sonim Technologies and Softil, today jointly announce that they have combined their technologies enabling Sonim to roll out the world’s most rugged range of next generation LTE devices for first responders.

These workforce-critical communication devices will have wide applications in vertical industries including construction, security guarding, oil, gas and chemical operations, utilities, transportation and logistics, forestry, agriculture and defense.

“Softil is delighted to partner with Sonim and integrating our BEEHD software development kit (SDK) to power the new range of rugged LTE handheld devices,” said Sagi Subocki, Softil’s Vice President, Products and Marketing. “With these next-generation devices, first responders such as fire fighters and emergency services will be able to use key smartphone features such as presence, video calling, video streaming, data sharing, location services all integrated into a single device to work faster, better and more efficiently.”

The new range of Sonim LTE devices was first demonstrated at the Mobile World Congress 2018 in Barcelona, Spain, and it will be used on Softil’s booth (#2577) throughout the upcoming IWCE event in Orlando, FL., as part of a demonstration how an end-to-end MC communication service such as that of FirstNet can be cost-effectively set up using off-the-shelf ruggedized handsets running MC first responder applications powered by Softil’s BEEHD client framework.

“Sonim partners with industry leading firms to harness their technologies and produce the most feature-rich and durable devices possible to help governments and businesses keep their field workforces safe, efficient and accountable,” said Robert Escalle, Vice President, Public Safety Market Segment at Sonim Technologies. “By embedding Softil’s BEEHD client solution into a new range of rugged LTE devices, we’ve done just that.”

The live demonstration will use the mission-critical push-to-talk (MCPTT) servers of Softil and Sonim partner, Nemergent Solutions, which support all of the 3GPP Release 13 requirements as well as advanced functionality defined in 3GPP release 14, allowing group, configuration and identity management for the MC clients such as the one enabled by Softil’s BEEHD. This server stack, developed under the NIST Public Safety Innovation Acceleration Program (PSIAP) with the support by Sonim, is one the most advanced 3GPP-compliant suites presently used and future-compatible with FirstNet.

“Nemergent is proud to be the leading supplier for the core MC infrastructure implementations, working together with our partners to enable developers and early adapters around the world to deliver best-in-class mission critical communication solutions,” stressed Jose Oscar Fajardo, Nemergent CEO.

Integrating Softil BEEHD on the mission critical service-ready Sonim ruggedized handsets, supported by the power of LTE-enabled mission critical infrastructure such as the one offered by Nemergent, offers a glimpse of possibilities of creating the new breed of applications for First Responders with capabilities such as mission critical video (MCVideo), data, location, map and file sharing, which completely changes the way first responders operate and help save lives.

06 Mar 18. Start-ups looking to bring their technology to the defence and security sector can now apply to defence accelerator program Techstars Adelaide, which has opened up applications for its 2018 program.

Backed by global defence industry giants Boeing Defence Australia, Saab Australia, Thales and Codan Defence Electronics, Techstars Adelaide is a 13-week mentor-driven program that helps start-up teams ramp up their product development and go-to-market strategy.

The program is focused on companies looking to advance state of the art technology across drones, internet of things (IoT), big data, cyber security, sensors and robotics.

After its launch as the first Techstars start-up accelerator in the Asia-Pacific region in 2017, the inaugural Techstars Adelaide received applications from over 49 countries. The 10 companies selected for Techstars Adelaide 2017 had founders from Australia, India, Israel, Italy, New Zealand and the US, and worked on a wide range of defence and security related technologies, including big data and analytics, sensors, unmanned aerial systems, rocket propulsion, cyber and physical security, and performance improvement.

Graduates have since gone on to launch new products, close significant VC investments and inked global deals with top defence sector corporations.

“Last year, we proved just how exciting the growth potential of the innovative defence and security sector really is,” managing director of Techstars Adelaide Terry Gold said.

“Techstars Adelaide gives startups the opportunity to base themselves in a global centre of excellence for defence and security, to work directly with some of the world’s leading defence organisations and within the broader network of international companies.”

Adelaide-based 2017 Techstars program participant Teamgage has since gone on to sign a global deal with Thales and has begun working with major Australian corporates such as DXC Technology and NEC. The platform is designed to enable large organisations to adapt to change and transform company culture.

The Adelaide-headquartered start-up has grown its user base by over 200 per cent since starting the Techstars program in July 2017.

Teamgage’s co-founder and chief operating officer Noelle Smit said that the Techstars Adelaide program played a critical role in the company’s growth trajectory.

“Being selected for Techstars Adelaide really opened up a global network for us to take advantage of,” Smit said.

“Working alongside companies like Boeing and Thales has given us access to powerful mentoring and business opportunities. We’ve since signed Thales on as a Teamgage client, and are set to roll out our platform across the organisations’ 3,500 team members nationwide.”

News of the program opening comes as Techstars Adelaide was last month announced as being one of 14 new innovation precincts to be added to the South Australian state government’s $7.6m GigCity network; set to receive internet speeds 100 times faster than the national average.

“With $100bn of defence projects in the pipeline in South Australia, and Adelaide emerging as a regional hub for start-up development, we could not be more excited to be inviting the world’s best start-ups to participate in what is fast becoming the world’s leading defence accelerator,” said Gold. (Source: Defence Connect)

06 Mar 18. DST to develop additive manufacturing of energetic materials. The Australian Defence Science and Technology (DST) Group is set to collaborate with industry partners and academia for the development of advanced 3D printing technologies for energetic materials.

Energetic materials include explosives, propellants and pyrotechnics. 3D printing will help enhance the safety and performance of explosives for the country’s defence industry.

Operating as Australia’s leading authority on energetic materials, the company will work in partnership with local firm DefendTex, the Royal Melbourne Institute of Technology, the Flinders University, and Cranfield University in the UK in order to carry out the project.

Australian Defence Industry Minister Christopher Pyne said: “This research could lead to the production of advanced weapons systems, which can be tailored for unique performance and purpose.

“It should also allow broader access and more efficient and environmentally friendly manufacturing opportunities to Australian industry providing significant cost savings and competitive advantage for defence, and industries such as mining construction.”

Pyne further said that the additive manufacturing of energetic materials has the capability to significantly enhance their performance, offering logistical and cost benefits in their production.

To date, a total of $2.6m has been invested over two years through the Cooperative Research Centre (CRC) programme.

Pyne added: “These outcomes will have far-reaching civilian and defence applications and contribute to the development of critical expertise in energetic manufacturing techniques in Australian industry.” (Source: army-technology.com)

06 Mar 18. UK National Security Adviser Sir Mark Sedwill presented the 13th annual ADS Security Innovation Award to Agilent Technologies on the opening day of Security & Policing 2018 in Farnborough. The company won the award for Resolve, its handheld chemical identification system, which rapidly detects explosives, narcotics and hazardous materials through sealed, opaque containers. This capability allows information to be gathered quickly, without opening suspicious containers, and enables better critical decision making.

Smith Myers Communications was awarded the runners-up position in the competition for its Artemis product, which accurately locates and communicates with missing persons in remote areas through their mobile phone.

Two further companies were highly commended in the ADS Security Innovation Awards:

CameraForensics – for exploitation of photographic metadata in countering theft, fraud, and child exploitation.
OpenWorks Engineering – for their revolutionary counter-drone net capture systems: SkyWall.

Dr Paul Loeffen, Director of Raman Spectroscopy at Agilent Technologies, said, “We are delighted to receive this award for security innovation. Resolve’s through-barrier detection capability is a real game-changer in handheld chemical detection, and we have seen an exceptional level of interest since the system was introduced in 2016. Resolve systems are now deployed globally, and in all the key areas the product was originally developed for; hazmat, military (EOD and CBRN), law enforcement (narcotics and explosives detection), and customs applications at ports and borders.”

ADS Chief Executive Paul Everitt said: “These awards celebrate the best of innovation in the security sector and I congratulate Agilent Technologies on their win. The UK’s security sector is going from strength to strength, enjoying rapid growth in turnover and exports, and has world-leading expertise to offer to our customers at home and overseas Innovative companies like these are generating thousands of high-value jobs across the UK and are making a significant contribution to public safety as well as national prosperity.”

Security & Policing 2018 takes place at the Farnborough International Exhibition & Conference Centre from 6 to 8 March, giving UK companies in the security sector the opportunity to showcase their products and capability to UK and international customers.

02 Mar 18. USAF wants better software security baked in. To counter the growing sophistication of enemy hackers, the Air Force has embraced agile software development, testing and deployment processes.

Since cancelling the Air Operations Center (AOC) 10.2 contract with Northrup Grumman in July 2017, the Air Force has been adopting practices from Silicon Valley to improve software development. The AOC Pathfinder project, which aims to speed delivery of AOC weapon systems capabilities to the warfighter, takes advantage of automated builds multiple times a day, fuzzing and automated testing, according to Air Force Cyberspace Innovation Director Lauren Knausenberger.

“We are looking at redefining the way that we develop software in the government and how you bake security into the process so it is not an afterthought,” Knausenberger said at the Feb. 27 AFCEA Cybersecurity Technology Summit. “We are pushing toward proofs that have results — where you might see language to fix vulnerabilities in 10 days or red teams and pen testing.”

Through the first two rounds of Hack the Air Force bug bounty program, hackers identified previously unknown vulnerabilities for cash. Air Force Chief Information Security Officer Peter Kim said the program was “enlightening” because it surfaced hidden problems and showed how to fix them.

The Air Force’s current certification process is part of the problem, Kim said, as it can be burdensome for coders who must check software packages.

“Every time you create a widget, you need to build a huge certification package that causes people pain and suffering and lots of sorrow,” Kim said. “It is hundreds of pages thick, and they need to do all of these controls … [which doesn’t work] in the modern age.”

AOC Pathfinder is creating a new process to develop code. “Our goal in the near term is to certify the AOC software factory so everything coming out is automatically certified,” Knausenberger said. “We are pushing the proof toward the results.” (Source: Defense Systems)

01 Mar 18. DOD looks to share more spectrum. The government announced plans to study the possibility of sharing or clearing a 100 megahertz swath of spectrum for high-speed mobile broadband.

David Redl, administrator of the National Telecommunications and Industry Administration, said in a Feb. 26 blog post that 100 MHz in the 3450-3550 MHz band, used by the Department of Defense for military radar, could be a key asset in expanding the U.S. broadband spectrum inventory.

Under the Spectrum Pipeline Act, passed in 2015 with the budget bill, agencies can seek funding for studies related to relinquishing or sharing spectrum for commercial use.

The engineering study announced by Redl will examine whether the spectrum can be shared for mobile broadband, “without harming critical government operations.”

The Federal Communications Commission has already set rules for the adjacent 3550-3700 MHz mid-spectrum band for its planned Citizens Broadband Radio Service.

FCC chairman Ajit Pai hailed the move as “great news” for next-generation commercial wireless services. “Altogether, this could unleash a contiguous block of hundreds of megahertz of valuable spectrum for new technologies and services, including 5G,” he said.

The news hit the same day Pai announced plans to tee up the 3.7 to 4.2 gigahertz band for terrestrial commercial use and to auction off spectrum in the 28 GHz and 24 GHz bands. Pai made those announcements in a speech at the World Mobile Congress in Barcelona. (Source: Defense Systems)

02 Mar 18. Harris selects Silvus radios for UK MoD’s Project Starter. US-based Silvus Technologies has been selected by Harris for the delivery of its StreamCaster SC4200 radios to support the UK Ministry of Defence (MoD) Project Starter. Being run within Special Projects Search & Countermeasures (SPSCM), the Project Starter is a Category C programme that has been designed to procure a new explosive ordnance disposal (EOD) remote controlled vehicle (RCV) for use on contingent operations.

Under a $70m MoD contract, Harris is providing the T7 robotic platform designed to support EOD. Following extensive testing and assessment, Harris selected the Silvus radios for the project.

Silvus Technologies’ StreamCaster SC4200 radio would help provide wireless command, control and video operations of the T7 robot.

The rugged construction and enhanced robustness of the StreamCaster radios enables T7 robot operators to fight against explosive threats more effectively from a safe stand-off distance, including improvised explosive devices (IEDs).

Silvus Technologies Unmanned Systems director of sales Kasey Cooper said: “Silvus is thrilled for the opportunity to support Harris Corporation in bringing mission-critical technology like this to the UK forces.

“The pairing of Silvus Mobile Networked MIMO (MN-MIMO) Technology with the T7 robot will provide an unprecedented capability to overcome the growing threat IEDs pose to our friendly forces.”

The two companies intend to commence work on the programme this year.

Harris’s T7 robot has been developed to support the rising requirements of both commercial and military missions, such as hazardous materials clean-up, EOD, intelligence, surveillance and reconnaissance (ISR), and Special Weapons And Tactics (SWAT) missions. (Source: army-technology.com)

02 Mar 18. Spain pursues improved tactical communications. The Chief of the Spanish Defence Staff (CHOD) has given the approval for the Spanish Armed Forces to pursue an upgrade programme aimed at improving the tactical communications capabilities of its army, navy, and air force. A senior source within the CHOD confirmed with Jane’s that the decision had been made on 20 February, describing plans to move forward with the Spanish Defence General Staff’s Operational Requirements Document (ORD) for a Joint Tactical Communications Secure Radio System (SCRT). According to Lieutenant Colonel Ignacio Simon, the SCRT will seek to provide the armed forces with a software defined radio (SDR) capability. (Source: IHS Jane’s)

02 Mar 18. The US Army radio that could work in cities, caves and tunnels. Thales has begun delivery on a $37m order for a tactical radio that the Army says will significantly improve how soldiers communicate in the field.

The Army inked a contract in December for the company’s dual-channel AN/PRC-148C Improved Multiband Inter-Intra Team Radio (IMBITR), a two-pound handheld radio that provides voice and data capability for both the dismounted user and mounted vehicle configurations.

“This suite of radios will provide SFAB [security force assistance brigades] combat advisor teams with inter-team and reach back communications and data situational awareness capability as they perform their missions,” said Paul D. Mehney, a spokesman for U.S. Army Program Executive Office – Command, Control, Communications and Tactical.

The Army is trying to break through certain limitations in its Soldier Radio Waveform, or SRW, which is the present go-to format for tactical communications.

By its nature, SRW can only scale up for use by 30 or 40 individuals in a user group, said Gary Kidwell, Thales Defense & Security business development director. This in turn puts the squeeze on available spectra. Because a brigade operation may need dozens of SRW devices to support its operations, users may be limited to voice and a very small amount of data throughput.

This means a platoon might be able to convey basic location information, for example, but richer data including imagery and video wouldn’t make it through. That puts a crimp on ISR capabilities.

Thales in 2012 introduced its two-channel handheld for simultaneous connectivity to legacy networks as well as the SRW network. The company says it has put the device through five years of testing and feedback, including participation in Army’s Network Integration Evaluation, the Maneuver Fires Integration Exercise, and the Bold Quest coalition demonstration.

The Army now appears to see promise in this dual-channel approach. “Combat advising teams can use the radio suite to share position locational and situational understanding information, enable the ability to chat and send text information and also transmit images if needed,” Mehney said.

Thales says it has overcome some of the constraints around SRW by introducing a new wave form, the Tactical Scalable MANET (TSM), developed in partnership with TrellisWare Technologies. By utilizing this approach, “the solution can now scale to 200-plus nodes per network, thus preventing the spectrum challenges that were associated with SRW, while also ensuring that the voice and data channel can further support position location information, chat functionality and streaming video,” Kidwell said.

Unlike the Soldier Radio Waveform, TSM uses a “barrage relay” technique as a means to push information across the network. This eliminates routing and thus minimizes network overhead. According to TrellisWare, the barrage relay approach allows for multiple video transmissions, faster position locations, and simplified configurations for grab-and-go deployments.

This has direct battlefield implications.

Sharing information more widely

With barrage relay, “the waveform allows users to operate in much more challenged environments. It means you can have larger networks that provide voice, video and data in all environments including urban environments, caves and tunnels, and in buildings,” Kidwell said.

Moreover, the wider user base should make it possible to share critical battlefield information more widely, giving warfighters greater insight into their surroundings and commanders better visibility into their troop disposition.

“In current environments, someone deployed with an SRW may only have 30 personnel in that network. I could only have visibility with 30 other users,” Kidwell said. “In this network I can have situational awareness of not just my platoon but my entire battalion or brigade. Now I have the ability to digitally communicate with them and pass on critical mission data.”

As a dual-channel device, the IMBITR also helps the Army to overcome a key migration challenge. Military leaders want to move away from more limited legacy solutions, but need to do so in such as way as to ensure that those with older devices can still talk to troops equipped with upgraded radios.

By embracing a dual-channel approach, the service can move away from the constrained SRW environment while still enabling connectivity as newer devices as phased in across user groups.

“It’s all about enabling that end user to make critical decisions in real time,” Kidwell said. (Source: C4ISR & Networks)

01 Mar 18. How the US Army plans to revolutionize soldier battery technology. In the world of battery technology, the trade off between power and energy has flustered experts for years. Energy measures the capacity to do work, while power measures how fast the work can get done. An increase in one of these variables, often comes at the expense of the other.

As the Army’s equipment continues to become more power hungry and the desired run time remains “as long as possible,” researchers at the U.S. Army Materiel Command’s Communications-Electronics Research, Development and Engineering Center, or CERDEC, are developing a new lithium ion battery hybridized with other materials that can meet both demands in a package small enough for soldiers to carry in the field.

“What we’re able to do with these hybrids is get long run times, but also provide the power necessary to do the actual mission,” said Terrill Atwater, CERDEC Command Power and Integration Directorate research chemical engineer. “One of the two components alone would either power the mission for a very short period of time or not power it at all.”

CERDEC’s hybrid battery would also provide another advantage: lighter loads for soldiers. The hybrid battery is lighter in weight than the batteries soldiers currently carry, but it provides the same high pulse power and high energy.

“All soldiers want to do is complete their missions without swapping out batteries,” Atkins said. “Ultimately, that’s what we’re providing them. The capability to do their mission without swapping out batteries because they have too low power or energy.”

The goal for CERDEC’s hybrid battery is to double the energy density of the Army’s battery technology from the currently fielded 200 watt-hours per kilogram to 400 watt-hours per kilogram, effectively doubling the amount of energy in the same weighted volume package. They also plan to surpass the Army’s 72-hour run time requirement, which is out of reach for current lithium ion technology. Researchers said they hope to begin fielding the hybrid technology in the coming years.

The main obstacle to achieving this landmark accomplishment? Safety.

“The energy content of the technologies we deal with in the military for portable applications contains the same energy as a half a stick of dynamite,” said Mike Brundage, chief for the CERDEC Command, Power and Integration’s Tactical Power branch. “We’ve demonstrated the chemistry in the lab. Whether or not it can be done in a package that is safe for soldiers to use is still to be determined.” (Source: C4ISR & Networks)

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Oxley Group Ltd

Oxley specialises in the design and manufacture of advanced electronic and electro-optic components and systems for air, land and sea applications within the military sector. Established in 1942, Oxley has manufacturing facilities in the UK and USA and enjoys representation worldwide. The company’s products include night vision and LED lighting, data capture systems and electronic components. Oxley has pioneered the development of night vision compatible lighting. It offers a total package incorporating optical filters, equipment modification, cockpit and external lighting along with fleet wide upgrade services including engineering, installation, support, maintenance and training. The company’s long experience of manufacturing night vision lighting and LED indicators, coupled with advances in LED technology, has enabled it to develop LED solutions to replace incandescent and fluorescent lighting in existing applications as well as becoming the lighting option of choice in new applications such as portable military hospitals, UAV control stations and communication shelters.

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SATELLITE SYSTEMS, SATCOM AND SPACE SYSTEMS UPDATE

Web Page sponsor Viasat

www.viasat.com/gov-uk

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27 Feb 18. Viasat Rolls Out Their New Viasat Service. Viasat (Nasdaq: VSAT) has announced the availability of their new Viasat service, with speeds up to 100 Mbps — the new Viasat service will offer unlimited data plans, giving customers more freedom and access to more online services, without the need to pay overage charges.

The new service is powered by the ViaSat-2 satellite system and, according to the company, includes the most advanced, highest-capacity communications satellite in orbit today, coupled with new innovations in satellite ground infrastructure.

Higher speeds, for all

Viasat is the first satellite internet service provider in the U.S. or globally to offer plans with 100 Mbps download speeds to consumers’ homes. The Company’s new service is faster than any other satellite internet service today and is as much as 10 times faster than typical DSL. Additionally, most of Viasat’s home internet plans meet or surpass the Federal Communications Commission’s broadband definition of 25 Mbps download speeds, with plans offered at 12 Mbps, 25 Mbps, 30 Mbps, 50 Mbps and 100 Mbps speeds nationwide.

More data, no overage charges

Viasat is offering consumers the ability to enjoy more data and more entertainment at home — without overage charges. To offer this service, Viasat is optimizing video streaming, maximizing ground network efficiencies and flexing its system’s data consumption capabilities to offer more data and video viewing time at small screen, DVD or better quality. That means if the monthly data plan is exceeded, service will continue based on availability, except during peak periods where congestion may limit service.

Premium features, premium services

The new internet service comes power-packed with new capabilities:

Whole-home WiFi: Viasat’s new, modern-designed home gateway offers built-in Wi-Fi with the latest wireless technology and two Gigabit Ethernet ports, allowing everyone in the home to connect their devices wirelessly.
Integrated Voice Calling: An integrated phone port on the home gateway, allows for instant activation of home phone service without a separate ATA (analog telephone adapter).
Enhanced Service Support: Customers can purchase EasyCare Support, offering free on-site service calls whenever needed, one free satellite dish relocation per year and priority access to tech support.

Internet anywhere

The company will enable ViaSat-2 services for business and government as well as in-flight internet connectivity on commercial and business aircraft. In each case, Viasat’s internet service will offer more satellite capacity and more premium features—meaning users will enjoy a better service experience, with amplified access, across a much larger coverage area.

In addition to the new service running on the ViaSat-2 satellite system, Viasat is already building its next-generation high-capacity satellite system — ViaSat-3 — which is expected to enable high-quality, high-speed internet access for billions of people and emerging markets worldwide. The ViaSat-3 system will offer global coverage with only three satellites, each designed to support over 1 Tbps of network capacity, further expanding the reach of 100+ Mbps broadband access. The first ViaSat-3 class satellite is expected to go into service in 2020 for the Americas, with the second satellite for Europe, Middle East and Africa (EMEA) expected to launch approximately 6 months later. A third ViaSat-3 class satellite is planned for the Asia Pacific (APAC) region.

Viasat’s new home internet service is available to all current and new customers. The service is available through a nationwide network of dealers, sales agents or direct through Viasat at: https://www.viasat.com/internet.

Mark Dankberg, Viasat’s chairman and CEO, stated that the company has upped the game for satellite internet by delivering a new service that gives consumers what they want: more data, faster speeds and better entertainment experiences across all device types. This service launch is an important step forward in Viasat’s mission to deliver faster internet anywhere. The innovations the company is making across the Viasat satellite system allows the firm to do extraordinary things, from moving the satellite industry up-market by delivering premium services, speeds and plans that give consumers new choices in their internet service provider, to helping bridge the digital divide in the U.S. today.

07 Mar 18. Growing Use of Satellite Imagery in Various End-Use Environments to Drive Demand for Satellite Remote Sensing Services.

The global market for Satellite Remote Sensing Services is projected to reach US$7.05bn by 2024, driven by growing demand for satellite imagery in various end-use environments in both government and private sector and ongoing proliferation of micro satellites offering earth observation services at lower cost.

Satellite remote sensing involves the use of low, medium, high or very high spatial resolution instruments equipped in satellites orbiting around the earth to generate reliable data for identifying, evaluating and analyzing various parameters in earth observation. Earth observation focuses on monitoring, identifying, and analyzing the condition of and changes in natural and man-made environments, and renders a resourceful tool for analysis and evaluation of human civilization’s dramatic impact on global environment. Satellite imagery with fine spectral and spatial resolution and high temporal resolution offers a wider scope for mapping and monitoring biodiversity and ecological studies. The growing emphasis on earth observation in government as well as private sector environments creates significant opportunities for satellite remote sensing. Demand for satellite imagery remains high for weather predictions & forecasting, disaster management support, agricultural & land management programs, natural resources monitoring & conservation, land use & forest mapping, and rural & urban development applications.

Technology advancements, especially in the area of image resolution and image quality, continue to infuse positive momentum into the global satellite remote sensing services marketplace. Demand for high resolution data is becoming increasingly significant in commercial applications such as mining, bathymetry and hydrology as it enables precise identification of materials, a capability that was earlier restricted to airborne multispectral and hyperspectral systems. Global space sector is witnessing steady proliferation of small satellites leveraging advancements made in electronics technologies that include miniaturization of components, and development of lighter materials. These satellites are increasingly being considered for collection of remote sensing data for use in various end-use environments including greenhouse gas monitoring, multispectral Earth imaging, and maritime tracking. As the CAPEX involved is low, small sats can offer data and services at affordable prices.

The United States represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 20.4% over the analysis period driven by the growing investments by countries such as China in improving its satellite remote sensing technology to monitor changes in agricultural land and assess strain on natural resources such as water to with emergencies.

Major players in the market include Airbus Defence and Space, Ball Aerospace & Technologies Corp., Boeing Company, ImageSat International N.V., Maxar Technologies Ltd., Mitsubishi Electric Group, Orbital ATK, Planet Labs, Satellite Imaging Corporation. (Source: ASD Network)

07 Mar 18. This week at Satellite 2018, Teledyne Paradise Datacom (Paradise) is unveiling 3 new innovative products for the Satcom modem and SSPA (solid state power amplifier) markets. Learn more about these new products at Satellite 2018 by visiting the Teledyne Defense Electronics booth #619.

The QubeFlex™ Groundstation Modem for SmallSat Constellations. The latest innovation in Q-Series software-defined modems from Paradise, QubeFlex™ is engineered specifically for CubeSats and smallsats in general. The modem is a readily upgradeable and flexible product that provides high data rate support for Intelsat, CCSDS telemetry and other common space transmission standards to meet the challenges of LEO (low earth orbit) operations. QubeFlex™ handles a wide range of common space packets protocols as well as unformatted data, and helps Operators cope easily with the large Doppler frequency shifts that are common to LEO satellites.

This new modem provides direct handling of S band, saving expensive up/down conversion. It also converts the data stream to IP output at the ground station, thus providing Operators with convenient onward computer data capture and analysis. QubeFlex™ delivers further advantages for smallsat ground station services with forward error correction, ensuring data is protected against transmission loss. High data rates ensure maximum data can be received on each satellite pass.

“In effect, ground station Operators can achieve faster time to market because QubeFlex is thoughtfully designed to save them having to constantly reinvent the wheel,” said Colin Mackay, Vice President of Modem Engineering for Paradise. “As part of our end-to-end comms solution, it replaces the ‘do-it-yourself’ approach with a professional off-the-shelf solution that can easily adapt to your evolving current and future needs.”

The 200W Ka-band GaN Solid State Power Amplifier (SSPA). At 200W, this compact outdoor SSPA sets a new industry standard for solid state power amplification in the Ka-band GaN market. Operating in the 27.5 to 31.0 GHz range, this SSPA provides 200W CW saturated output power, and 100W linear output power. Building further on the Teledyne Paradise Datacom heritage of the rugged compact outdoor SSPA package, this new SSPA is the highest power solid state technology available in the Ka-band market.

The new Touch Screen SSPA. Teledyne Paradise Datacom has developed a new 3RU Rack Mount SSPA with a user-friendly Touch Screen Display. The display can be customized by users by selecting up to eight (8) status parameters to monitor on the Custom Status Menu. Features of the new Touch Screen Display include System Fault Status, a ‘Set Signal Attenuation’ option, a Redundant System Mimic Panel, customizable Status, Fault, and ‘Quick Keys’ displays, and an N+1 Master System Summary. The Touch Screen is available for all Paradise Rack-Mountable amplifiers.

“These new products demonstrate our continuing commitment to push product boundaries and deliver exceptional value to our customers,” said Steve Turner, Vice President of RF Engineering for Paradise.

(Source: BUSINESS WIRE)

26 Feb 18. Finding a tent in a satellite image is the new needle in a haystack. The Pentagon’s innovation agency has announced a competition it hopes will advance computer vision technology and improve national security and disaster response. The Defense Innovation Unit experimental (DIUx) has partnered with the National Geospatial-Intelligence Agency (NGA) to create one of the largest overhead satellite imagery datasets for the 2018 xView Detection Challenge.

Participants will compete for a $100,000 prize to see whose algorithm best identifies objects of interest for disaster relief and humanitarian missions. Using annotated satellite images of disaster zones provided by DIUx, participants will train their algorithms to identify 60 object classes of interest, such as trucks, damaged buildings and tents. Submitted software will be run against unpublished images to see how effectively they can identify and distinguish different object classes.

If these algorithms prove they can accurately tag and annotate high resolution satellite imagery on their first pass, DIUx hopes analysts will be able to spend more time working on solutions to humanitarian crises.

These algorithms also have the potential to be re-trained to support warfighters and intelligence analysts. For example, algorithms that can quickly identify changes in hardware and equipment may revolutionize how imagery analysts track change in Iran and North Korea’s nuclear programs, or the mobilization of Russian military assets near the Baltics.

While there has been some reported concern about a shift to AI for imagery analysis within NGA, it remains the case drones and satellites will produce more data than can be processed by human analysts alone. Due to the sheer volume of data created by artificially intelligent and autonomous systems, some officials within DoD have made it clear that technological advancements in computer vision and machine learning are necessary for analysts to effectively do their jobs in the future.

(Source: C4ISR & Networks)

07 Mar 18. The assembly, test and launch operations (ATLO) team at Lockheed Martin (NYSE:LMT) has started production of a new commercial satellite, JCSAT-17, that will deliver flexible, high-bandwidth communications to users in Japan and the surrounding region. The JCSAT-17 satellite, manufactured for the SKY Perfect JSAT Corporation (SJC), has entered the assembly and test cycle after completing a rigorous design and engineering phase.

Atsushi Mamiya, JCSAT-17 project manager at SJC said, “Lockheed Martin has done a great job so far. SJC maintains good cooperation with Lockheed Martin and the whole team as they work toward the successful and scheduled launch of this excellent satellite.”

Built on Lockheed Martin’s new advanced LM2100 bus, the satellite’s payload incorporates S-band transponders with a flexible processor along with 18m mesh reflector, enabling assured communications continuity during disaster relief efforts and other high-volume events. It will also carry C- band and Ku-band.

“JCSAT-17’s cutting-edge flexible payload processor means that SJC can move bandwidth where it’s needed, when it’s needed, ensuring that this satellite stays agile, ready and relevant for years to come,” said Sam Basuthakur, Lockheed Martin JCSAT-17 program manager. “This is the third modernized and first Mobile Satellite Service (MSS) built on the new LM2100 platform, scheduled for launch in 2019 on Ariane-5. Both Lockheed Martin and SJC are excited to start assembly and integration of this innovative spacecraft employing LM2100 best practices and streamlined ATLO process, which will provide critical MSS communications to SJC and to the people of Japan.”

A critical stage in the program, ATLO begins with the satellite’s assembly, then moves through the environmental testing and concludes with its launch. Over the next nine months, the ATLO team will integrate subsystem equipment onto the satellite structure, including power, attitude control, propulsion, thermal control, telemetry tracking and control, mechanisms, RF payload and antennas,

JCSAT-17 is the eighth satellite built by Lockheed Martin for SJC, beginning with NSAT-110, JCSAT-9 through JCSAT-13 and JCSAT-110R.

06 Mar 18. Space company secures $3.5m deal ahead of ASX listing.

A Luxembourg-based satellite technology company that has announced plans to list on the ASX has landed a deal for its Scouting Mission satellite system. Kleos Space has signed an authorisation to proceed (ATP) with GomSpace to launch the initial satellite system, Scouting Mission, as part of Kleos Space’s 20-system constellation. Kleos Space’s technology will launch and operate its earth observation satellite constellation in early 2019, with GomSpace scheduled to deliver the Scouting Mission’s launch by Q1 2019.

The Scouting Mission will be the initial satellite system in Kleos Space’s Geolocation Intelligence Mission, which will be a 20-system constellation that will globally gather geolocated radio transmission data, which will be provided to users as activity based intelligence as a service to guard borders, protect assets and save lives. The intelligence product will be sold for search and rescue, maritime security and regulatory intelligence purposes to users for whom quality geospatial intelligence and situational awareness is essential.

Kleos Space said this type of data will be of significant importance and application for countries like Australia, who have large coastline borders, and are under the constant threat of drug and people smuggling, and activities such as illegal fishing. The data would also allow security agencies to better track and detect, as well as monitor, illegal vessels trying to enter Australian shores, and to protect Australia’s vast coastline.

The announcement comes a month after the Luxembourg company confirmed its intentions to list on the ASX.

“Kleos Space’s intended listing on the ASX has been enabled by the significant support we have received from the Luxembourg government and the local expertise ecosystem. We are excited to be co-operating with other Luxembourg space companies new and old within the SpaceResources.lu initiative to further develop our offer, and anticipate significant space segment contracts will be placed within the growing Luxembourg space community,” said Andy Bowyer, director of Kleos Space.

“Australia is a key target market for Kleos Space. Its geolocation data will be of huge value to agencies tasked with managing and protecting Australia’s vast coastline from people and drug smugglers, and illegal fisherman.”

Kleos Space plans to have both sales offices and local intelligence offices in Australia delivering targeted local solutions for Australian agencies.

The announcement of the planned listing takes place only six months after the signature of a memorandum of understanding with the Luxembourg Ministry of Economy, which marked the start of Luxembourg government’s support to the research and development phase of Kleos Space and to provide further support to the company through Luxembourg research institutes such as LIST and other Luxembourg-based companies such as EmTroniX. (Source: Defence Connect)

28 Feb 18. Virtual Machine-Based Satellite Ground Comms Architecture Delivered by Kratos for WGS. Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) has reported that their subsidiary, Kratos RT Logic, has delivered a virtual machine software satellite ground communications solution that commands the payload of the Wideband Global SATCOM (WGS) SATCOM satellites. Boeing’s Global SATCOM Configuration Control Element (GSCCE) Evolution program chose Kratos’ virtual solution to replace an older command and control technology.

The delivery includes virtual machine software versions of Kratos’ Front End Processor (vFEP) and Gateway (vGTW) systems. The vFEPs and vGTWs are installed and run in Virtual Machines (VMs) on customer supplied classified and unclassified commercial rack mounted blade servers. The delivery includes 40 vFEPs and 40 vGTW installations, enabling control of a fleet of up to 14 satellites from five operation centers supporting 28 separate command and control (C&C) missions.

Kratos is leveraging their Assurance (IA) hardening service with the company’s virtual machine software products to deliver an integrated security solution meeting the demanding requirements of DoD mission systems. The virtual architecture solution gives the power to control a fleet of satellites from multiple operation centers supporting separate command and control missions and also provides control and status of the KS-252 crypto on Boeing’s GSCCE Evolution program.

Frank Backes, the VP of Business Development for Kratos RT Logic, said that the move to a virtual machine-based architecture is part of Kratos’ strategy to deliver resilient, cost-effective ground architectures that are more robust, provide for enhanced space situational awareness (SSA). It will support the Air Force’s Space Enterprise Vision (SEV) with native compatibility for Enterprise Ground Services (EGS) and the Air Force’s Enterprise Space Battle Management Command and Control system (BMC2) now being developed. (Source: Satnews)

01 Mar 18. York Space Systems’ S-CLASS Spacecraft Platform Passes CDR Muster. York Space Systems, an aerospace company specializing in complete space segment customer solutions and the manufacturer of standardized spacecraft platforms, has successfully completed the Harbinger Mission Critical Design Review (CDR) leveraging the company’s industrial-grade S-CLASS spacecraft platform.

The detailed technical review, conducted by representatives from the U.S. Army Space and Missile Defense Command (SMDC) and the U.S. Air Force, occurred at York Space Systems’ brand-new spacecraft design and production facility in Denver, Colorado. The review included a tour of Metropolitan State University’s Advanced Manufacturing Institute capabilities that are being used to accelerate the production of the S-CLASS platform. The spacecraft is currently being constructed at York’s facility and will be demonstrated for government customers with its Multi-Mission Operations Center, located in the same building.

The rapid completion of the CDR demonstrates York’s ability to efficiently execute under accelerated schedule timelines. The S-CLASS platform is the backbone for three additional constellation missions performing Earth observation, celestial monitoring, and national defense.

York Space Systems’ S-CLASS platform is a critical part of the space segment infrastructure, which is required to support the rapid launch cadence now being demonstrated. With monthly and weekly launches planned by a wide variety of launch providers, York is well-positioned to meet this demand through its cutting-edge production processes and real-time availability, without which, rapid and affordable launches of satellites is not possible.

Robert Baltrum, VP of Engineering at York Space Systems, stated, “The company is delighted to pass another critical milestone in the firm’s march forward toward rapid and affordable deployment of space missions.”

John London III, Chief Engineer for Army Space and Missile Defense Command (SMDC) Space and Strategic Systems Directorate, added, “The York team continues to demonstrate their ability to execute quickly and efficiently. The success of this CDR marks a significant milestone for the S-CLASS platform and the capabilities the Harbinger Mission will demonstrate for the Army.”

Charles Beames, Executive Chairman and CSO for York Space Systems, added, “Completing this successful technical review with such positive comments from the firm’s customer and partner network is another huge step toward the cost revolution for space businesses. York’s ability to deploy this mission, and others already under contract, from a singular platform represents a sorely needed capability for customers across all segments. The S-CLASS platform’s ability to conduct virtually any LEO mission at a significantly lower price point, makes it a key enabler for the resiliency desperately needed by operators everywhere. The Board of Directors, York’s strategic partners, and the rest of York Space Systems are all tremendously proud of the team and their execution against the Army’s pressing launch schedule.” (Source: Satnews)

02 Mar 18. European satellite launches to go ahead after Ariane 5 snafu. Planned satellite launches using Europe’s heavy lifter Ariane 5 rocket can go ahead this month thanks to steps being taken following a problem with a launch earlier this year, the European Space Agency said on Friday.

On Jan. 26, an Ariane 5 rocket carrying two telecommunications satellites flew off course and deposited them in the wrong orbit, just as European satellite launch company Arianespace gears up for a record number of launches in 2018.

An independent investigation found that the cause of the error was that the rocket was fed with incorrect data, Arianespace has said.

Arianespace has drawn up an action plan following the incident that includes a fix for the problem experienced during the Ariane 5 launch. It will also improve other processes related to launches, the European Space Agency said on Friday, without providing details.

Arianespace is facing increased competition for the launch of commercial satellites with the emergence of rivals like tech billionaire Elon Musk’s SpaceX and Amazon CEO Jeff Bezos’s Blue Origin, putting it under pressure to provide reliable launches.

It is due to send four broadband satellites into orbit aboard a Soyuz rocket on March 6 and a Japanese communications satellite on an Ariane 5 on March 21. (Source: Reuters)

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At Viasat, we’re driven to connect every warfighter, platform, and node on the battlefield. As a global communications company, we power millions of fast, resilient connections for military forces around the world – connections that have the capacity to revolutionize the mission – in the air, on the ground, and at sea. Our customers depend on us for connectivity that brings greater operational capabilities, whether we’re securing the U.S. Government’s networks, delivering satellite and wireless communications to the remote edges of the battlefield, or providing senior leaders with the ability to perform mission-critical communications while in flight. We’re a team of fearless innovators, driven to redefine what’s possible. And we’re not done – we’re just beginning.

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RADAR, EO/IR, NIGHT VISION AND SURVEILLANCE UPDATE

Web Page sponsored by Blighter Surveillance Systems

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08 Mar 18. C-UAV Systems Market Finds a Very Interesting Future.

Market Forecast’s newest forecast report, Global Counter UAV (C-UAV) Systems Market Forecast to 2026, now available on ASDReports, includes both two scenarios and business opportunities. Where the reader may find exceptional opportunity in part of this market, our report shows the opportunity in good detail. For example, the successful drone attack that will mark Scenario II will create an immediate opportunity in the civil markets. But, only those companies that prepare for that event (such as by studying this report) will be able to take advantage of the business opportunity. Others will not have enough time to react before those sales go to their competitors.

The Global Counter UAV (C-UAV) Systems Market Forecast (basic scenario), valued at US$501m in 2018, is projected grow at a CAGR of 14,6%, to value US$1,496m by 2026. The cumulative market for global expenditure on Counter-UAV Systems is valued at US$ 8,496m over the forecast period. Demand for Counter-UAV systems is anticipated to be driven by large-scale procurement in regions like North America, Europe Asia Pacific, with a dominant position for the defense applications.

This forecast covers the entire C-UAV landscape: who demands those capabilities; who is developing technologies to meet that demand; which technologies are most promising and which are not; and which buyers will favor which capabilities.
Each forecast covers the entire period to 2026 but also displays the often significant difference between the first half and the second half of this period. Especially in Scenario II, growth and spending will change significantly different over time. Be ready for it.
The forecasts come in global and regions (North America, South America, Europe, Asia Pacific, Middle East & Africa).
The forecasts are also divided by Military vs. Civil and Sensors vs. Neutralizers.

Reasons to buy

Determine prospective investment areas based on a detailed trend analysis.
Gain in-depth understanding about the underlying factors driving demand for different C-UAV technologies.
Strengthen your understanding of the market in terms of demand drivers and inhibitors, government trends, and the latest technological developments.
Identify the major developments that drive this market, specifically including business opportunities laid out in their correct context.
Allocate resources for both today’s markets and those that will emerge overnight after a successful UAV attack.
Make correct business decisions with insight into two scenarios plus overviews of systems providers around the world.

(Source: ASD Network)

08 Mar 18. MoD to flight test Elbit’s Spectro XR. Flight trials of Elbit System’s advanced electro-optic system, the Spectro XR, are scheduled to be conducted in May 2018 with the UK Ministry of Defence (MoD).

The long range, day/night, multi-spectral electro-optical intelligence, surveillance, target acquisition and reconnaissance system has already been deployed by international military customers.

The flight trials will take place on a range of fixed wing and rotary platforms, according to Mike Casey, VP sales and marketing at Instro Precision, a UK-based subsidiary of Elbit.

While the system is designed for use on a wide variety of platforms, including airborne, land and naval vessels, the demand currently stems primarily from fixed and rotary aircraft, he said in a conversation with Shephard at the Security and Counter Terror Expo (SCTX) in London.

The 38cm (15in) system provides users with the capabilities traditionally only available in larger 50cm (20in) payloads. This size reduction was achieved through the development and integration of a large multi-spectral imaging system that combines multiple cameras into one.

Spectro XR features nine digital sensors, including 4k HD video, high definition shortwave infrared (SWIR), visible and near infrared and medium wavelength infrared.

By fusing the thermal and day camera feeds users are able to collect clear images even when operating in poor weather conditions, such as heat haze, and at standoff distances of over 200km, a capability Casey believes will be increasingly attractive to military users.

‘Spectro-XR really represents the high-water mark in terms of stabilised gimbles,’ Casey said.

‘Gone are the days when aircraft could stay overhead… as the environment changes, certain threats from states will mean that long range stand-off capabilities will be increasingly important.’

Laser targeted designators can also be integrated into the system, enabling designation at tens of kilometres.

The modular design of the 52kg system enables users to configure the payload to best suit the platform and mission requirements and can be integrated with a host of other onboard systems including helmet-mounted tracking systems, data-links, radar and mission computers.

In 2016 Elbit was awarded a four-year contract to supply an unnamed Asia-Pacific country with the Spectro XR. (Source: Shephard)

07 Mar 18. Google is helping the Pentagon learn how to analyze drone footage. Google is using its expertise in artificial intelligence to help the Pentagon analyze drone footage. First reported by Gizmodo, the tech giant has launched a pilot program with the Department of Defense’s Project Maven to develop AI that can quickly identify object classes from the incredibly large amount of footage collected by drones and other ISR assets.

The Verge reported Google is providing DoD with access to its TensorFlow software to create object recognition algorithms. Essentially a library of data, software engineers use TensorFlow to train their algorithms for a variety of machine learning and deep neural network research. The partnership has reportedly “outraged” Google employees, who strongly believe the company should not help DoD engineer technology that could eventually be used to target humans.

“We have long worked with government agencies to provide technology solutions,” a Google spokesperson told Gizmodo. “This specific project is a pilot with the Department of Defense, to provide open source TensorFlow APIs that can assist in object recognition on unclassified data. The technology flags images for human review, and is for non-offensive uses only.”

Originally developed by Google, TensorFlow is now used by wide-range of companies, from social media platforms like Snapchat and Twitter, to defense suppliers like Airbus Space and Defense.

Former Deputy Secretary of Defense Bob Work established Project Maven, officially known as the Algorithmic Warfare Cross Functional Team, in April 2017. The goal of the project was to deliver AI technologies to an active combat theater within six months after receiving funding. The project has achieved this goal, having already deployed AI technology to help U.S. troops in the fight against ISIS.

But work remains. Developing even more reliable algorithms to analyze the terabytes of information collected by drones requires a significant amount of time and effort. Training images must be categorized and labeled by analysts so algorithms can be properly trained to identify object classes. In examining the labor involved with executing a Project Maven type program, Greg Allen, an AI and national security expert, has noted the categorization and labeling phase of automation can, paradoxically, be labor-intensive. (Source: C4ISR & Networks)

07 Mar 18. Steiner Introduces New Scopes with Intelligent Firing Solution (IFS). IFS connects the scope with a smart phone providing instant in-scope DOPE information, including bullet point of impact, wind and air pressure readings, scope leveling, and turret settings. Once again Steiner raises the bar in the optics world by releasing the M7Xi and M8Xi—and if that weren’t impressive enough, the new scopes have an available Intelligent Firing Solution (IFS). Four new offerings are available, the M7Xi, M7Xi IFS, M8Xi, and M8Xi IFS. The M5Xi has been a great success with Special Forces deployed around the world so it only makes sense to capitalize on this winning formula and improve it. The M7Xi fits the bill for superior long-range performance and the M8Xi serves those with needs in the CQB to mid-range engagements.

The M7Xi has an optical power of 4-28×56 with a large field of view. Traditional long-distance scopes take up a lot of room though the M7Xi’s minimized size enables additional tools to be co-located on the rail such as thermal or night vision. Ruggedness is a hallmark at Steiner, the M7Xi can withstand up to 900Gs or force, is waterproof up to 20m (66Feet) and the operating temperature range is -46°C to +64°C.

The M8Xi is more compact with an optical power of 1-8×24. The short length, and low-profile turrets enable shooters to maintain superior situational awareness while still providing ranged performance. Standard Steiner durability is built in, the M8Xi is waterproof up to 20 m (66Feet), the operating temperature range is -46°C to +64°C, and it can withstand up to 900Gs or force.

Either of these fine optics can include the new IFS, a smart, customizable, display which provides real-time information to the operator. Including the Ballistic Calculator and Sensor Suite, the IFS pairs with your phone (Apple and Android) via Bluetooth technology and provides bullet point of impact via temperature, air pressure, inclination and wind drift readings. In addition, the display provides feedback on leveling and turret settings. Imagine looking through your optic, seeing where your reticle is pointing, and having an indicator of bullet impact based upon current conditions—like a dope sheet programmed into the scope. The display is customizable and can be shut off if needed. Steiner is preparing warfighters for the future with advantages like the M7Xi, M8Xi, and the powerful Intelligent Firing Solution.

07 Mar 18. AMISOM now operating Aerostar UAVs. The United States formally handed over an unmanned aerial intelligence, surveillance, and reconnaissance (ISR) system to the African Union Mission in Somalia (AMISOM) on 26 February. The event took place at the Baledogle (Bahle Dogli) airfield in Lower Shabelle region.

A US Department of State official told Jane’s on 5 March that the system comprises three Israeli-made Aeronautics Aerostar tactical unmanned aerial vehicles (UAVs) and is contractor-owned and operated under a one-year contract that began in September 2017.

Speaking during the formal handover ceremony, Ambassador Francisco Madeira, Special Representative of the African Union Commission Chairperson for Somalia, said the UAVs will provide AMISOM with real-time intelligence of militant groups that target AMISOM as well as Somali security forces, addressing one of the mission’s major capability shortfalls. (Source: IHS Jane’s)

06 Mar 18. HMCS Windsor completes BQQ-10 sonar fit. The Royal Canadian Navy (RCN) diesel-electric submarine HMCS Windsor has become the first of the service’s four Victoria-class boats to complete its fit of the Lockheed Martin AN/BQQ-10 (V)7 sonar processing suite.

The AN/BQQ-10, acquired through a Foreign Military Sales case with the US government, was originally developed under the Acoustic Rapid Commercial Off-the-Shelf Insertion (A-RCI) programme.

The BQQ-10 fit, an upgrade to the inboard processing – or ‘dry end’ – of the Victoria-class sonar suite, has come in three parts, Captain Christopher Robinson, head of Canada’s submarine force, told Jane’s onboard second-in-class Windsor in Augusta, Sicily, prior to the boat joining NATO’s ‘Dynamic Manta’ anti-submarine warfare exercise, which started on 5 March.

The first element comprised the upgrade of the passive ranging sonar fit, replacing the earlier Sonar 2041 MicroPUFFS hardware, he said. The second part covered the bow sonar system upgrade, while the third element was the introduction of a high-frequency active sonar.

Capt Robinson noted that the full BQQ-10 (V)7 fit has boosted detection and discrimination capability.

The BQQ-10 (V)7 capability is being installed incrementally in the four boats. Windsor’sfit was completed during a recent intermediate work period before the boat sailed for its current deployment. According to Windsor’s commanding officer, Commander Peter Chu, the submarine is now fully integrated and “every aspect of it we have capability in”.

Boat three, HMCS Corner Brook, is planned to be the second boat to complete the fit, with work currently being finished during its extended docking work period maintenance and upgrade activities taking place at Esquimalt on Canada’s West coast. Corner Brookis due to return to operational service in 2018. (Source: IHS Jane’s)

07 Mar 18. IAF Flight Test Squadron conducts Mobileye tests. The Israeli Air Force’s (IAF) Flight Test Squadron is carrying out a series of tests to upgrade the capability of providing early warnings of possible helicopter collisions, ensuring enhanced helicopter safety.

The capability is based on an application installed in the ‘Mobileye’ system integrated onto every aircraft deployed by the airforce. This helps reduce the danger of collision when an aircraft is airborne.

The notifications of each of the Mobileye system come with a timecode that determines the time when the notification was sent. The information provided helps the IAF to measure the range between two helicopters.

With the successful completion of the tests, the capability will be integrated into the IAF Helicopter Division as part of a system upgrade to detect proximity and prevent possible collisions.

IAF Flight Test Squadron test leader major A said: “The helicopters are notified with a beep, which increases in volume, reminiscent of the ‘Mobileye’ system in vehicles.

“This beep is heard loudly throughout the helicopter, and acts as an alarm a number of seconds before impact.”

The first stage of the series of tests conducted by the airforce involved a ground trial. The test was carried out on two helicopters, one of which was airborne while the other remained on the ground.

The airforce evaluated the system’s reaction to the helicopters during the trial, in addition to demonstrating its efficiency and potential.

The second stage of the test series will be carried out on two airborne helicopters. If successful, the Mobileye system will undergo an evaluation in the 124th Squadron, which operates the ‘Yanshuf’ (Black Hawk) helicopter. Following successful completion of the evaluation tests, the system is expected to become operational with the IAF. (Source: airforce-technology.com)

06 Mar 18. Congress to ‘balance’ JSTARS recap with somethings new, key lawmaker says. Lawmakers will seek “balance” between the U.S. Air Force’s multibillion-dollar program to replace its aging E-8C Joint Surveillance Target Attack Radar System and a yet-undecided alternative, a key congressman said Tuesday.

House Armed Services Subcommittee on Tactical Air and Land Forces Chairman Mike Turner, R-Ohio, said the subcommittee’s markup “will try to find the balance of funding taxis and Uber” — an analogy to legacy and new technologies that perform similar jobs.

The Air Force’s fiscal 2019 budget proposal would cancel the JSTARS recapitalization programin favor of a system-of-systems approach that links existing platforms for targeting and command and control. In the meantime, the Air Force would fly the current JSTARS fleet through 2023.

At the McAleese and Associates/Credit Suisse defense conference in Washington, Turner recalled how the Uber analogy was used at an Air Force caucus meeting to argue Air Force Secretary Heather Wilson needs to be able to free up funding for new technologies.

“But I said: ‘Taxis are still on the street,” Turner said. “What that means is either we have to have a smorgasbord of capabilities. And that’s what we’re going to work towards with the secretary. If there is a capability that is absolutely essential, we are going to make sure it’s preserved.”

The Air Force deputy chief of staff for strategic plans and requirements, Lt. Gen Jerry Harris, told McAleese conference-goers the range and capability of the threat has outpaced the technology behind the JSTARS recap.

“The technology that is emerging is probably giving us a better option than when we did the study a few years ago,” Harris said, adding: “The sensor we have can’t see as far as the threats that are coming back, shooting it down. That’s not a good equation for us.”

The request for proposals for the JSTARS recap is ongoing, but the Air Force is taking an incremental approach that keeps the E-8 in service a little longer than planned. In the future, the sensor will be better, and the Air Force will aggregate form a variety of platforms, Harris said.

At a conference earlier this month, Wilson detailed plans beyond JSTARS ― to develop an advanced battle-management system that connects sensors for an improved understanding of the battlefield, a requirement for combatant commander.

“Think air traffic control on steroids,” she said.

Yet, any threat to JSTARS is likely to face a fight on Capitol Hill.

Georgia’s congressional delegation expressed concern last year, ahead of the Air Force’s reversal of plans to buy 17 new JSTARS recap planes to replace its legacy inventory of E-8Cs.

Boeing, Lockheed Martin and Northrop Grumman — the three major U.S. military aircraft manufacturers — were all vying for the prime contractor slot. (Source: Defense News)

05 Mar 18. BAE Systems Australia today welcomed the announcement by the Minister for Defence, Senator the Hon Marise Payne and the Minister for Defence Industry, the Hon Christopher Pyne that the Company has been selected to upgrade Australia’s long-range high frequency radar network. The Jindalee Operational Radar Network (JORN) protects Australia’s coastal approaches through a network of three remote radars in Queensland, Western Australia and the Northern Territory. The radars play a vital role in supporting the Australian Defence Force’s air and maritime operations, border surveillance, disaster relief and search and rescue operations. The $1bn JORN upgrade will require over 500 highly skilled technicians and engineers working for BAE Systems and in the Company’s supply chain. Most will be based in the Edinburgh Defence precinct in South Australia, with remote site teams supporting the radars at Laverton (Western Australia), Longreach (Queensland) and Alice Springs (Northern Territory).

BAE Systems Australia Chief Executive, Gabby Costigan, said: “As a world leader in High Frequency radar technology, we are proud to have been selected to deliver an important upgrade to Australia’s most complex and critical Intelligence Surveillance and Reconnaissance capability. Together with our partners, we are committed to ensuring a high level of Australian industry and academic participation in JORN. Our collaborative approach will allow for the application of rapidly developing technology to ensure Australia maintains a capability edge and superior situational awareness to ensure our northern approaches are secure.”

BAE Systems has worked closely with the DST Group in the development of the technology that underpins JORN, and in securing an export market for High Frequency radar. BAE Systems has been exporting its world leading High Frequency systems technology for the past ten years. The Company will work closely with DST Group and the Commonwealth Government to further grow the potential of this important export industry.BAE Systems will deliver the JORN upgrade together with leading defence systems integrator Raytheon Australia, South Australian SME Daronmont Technologies and infrastructure specialist RCR Property Services. More than 20 specialist Australian SMEs will participate in the supply chain to ensure broader Australian industry participation and a strong focus on innovation to support the upgrade. BAE Systems’ Joint Open Innovation Network (JOIN) will also focus on activities to support the upgrade of JORN and the development of future JORN and intelligence surveillance reconnaissance capability. The Company has committed to contribute up to $10m to the initiative that involves partner universities – Flinders University, University of Adelaide and the University of South Australia – to support the creation of new Defence-focused courses and targeted research and development. JOIN will support 60 graduate positions over the life of the JORN upgrade and will also support industry with the establishment of an Innovation Laboratory that will provide a secure facility to allow greater collaboration to develop new, or improve existing, defence technologies.

05 Mar 18. Dedrone’s RF-300 Detects Drones and Pinpoints Pilots. Dedrone has released a new sensor, the RF-300, which automatically locates drones and their pilots. When combined with the broad coverage and early warning capabilities of Dedrone’s RF-100, the new RF-300 adds situational awareness for organizations to determine the nature and severity of threats from unauthorized drones.

The ultimate protection a facility can take against drone threats is to stop the pilot before they can cause any harm, and hold them accountable for damages. The Dedrone RF-300 provides this opportunity to enable law enforcement and site security leaders to locate and take action against trespassing pilots.

Key Highlights of Dedrone’s RF-300

Automatically tracks a drone’s flightpath, providing advance opportunity to protect sensitive infrastructure and deploy security measures
Pinpoints the location of a drone pilot, enabling security personnel to either alert law enforcement of an illegal intrusion or confront the pilot at their launch site
Connects to DroneTracker, Dedrone’s software platform, which combines multiple sensors and countermeasures, including RF, cameras, and microphones, for complete airspace security

What makes Dedrone’s RF-300 different from RF-100

Dedrone’s RF-300 builds on the capabilities of the widely-deployed RF-100 sensor. Together, both sensors provide robust airspace security. The Dedrone RF-100 is designed to diagnose the number of drones in protected airspace, while the RF-300 collects forensic evidence to take recourse against malicious pilots and prevent them from disrupting a protected site.

The Dedrone RF-300 is already in action. The technology was recently deployed the technology at a global economic meeting in Davos, Switzerland, which was attended by over 3,000 people, with events headlined by world’s most compelling politicians, scientists, and leaders. The police of the Canton of Graubündenm were responsible for the security of their attendees, and with Dedrone, were able to monitor their airspace in real time and, if necessary, intervene and stop a drone threat at an early stage.

DroneTracker integrates in the best of detection technology to provide complete airspace security

DroneTracker aggregates sensor information about potential threats, recognizing and classifying drones of all kinds. Its web-based interface shows live threats, real-time drone flight paths, and records forensic details including video evidence.

Dedrone launched DroneTracker 3 in December 2017, bringing to market the industry’s first airspace security solution that includes automated summary reporting for instant diagnosis of drone airspace activity. DroneTracker 3.1 was released in February 2018, which was updated to integrate in to Dedrone’s RF-300.

When combined, DroneTracker, Dedrone’s RF-100, and the new RF-300 make the Dedrone solution a complete, reliable, and accurate platform for drone detection and classification. (Source: UAS VISION)

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Blighter® Surveillance Systems (BSS) is a UK-based electronic-scanning radar and sensor solution provider delivering an integrated multi-sensor package to systems integrators comprising the Blighter electronic-scanning radars, cameras, thermal imagers, trackers and software solutions. Blighter radars combine patented solid-state Passive Electronic Scanning Array (PESA) technology with advanced Frequency Modulated Continuous Wave (FMCW) and Doppler processing to provide a robust and persistent surveillance capability. Blighter Surveillance Systems is a Plextek Group company, a leading British design house and technology innovator, and is based at Great Chesterford on the outskirts of Cambridge, England.

The Blighter electronic-scanning (e-scan) FMCW Doppler ground surveillance radar (GSR) is a unique patented product that provides robust intruder detection capabilities under the most difficult terrain and weather conditions. With no mechanical moving parts and 100% solid-state design, the Blighter radar family of products are extremely reliable and robust and require no routine maintenance for five years. The Blighter radar can operate over land and water rapidly searching for intruders as small a crawling person, kayaks and even low-flying objects. In its long-range modes the Blighter radar can rapidly scan an area in excess of 3,000 km² to ensure that intruders are detected, identified and intercepted before they reach critical areas.

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MISSILE, BALLISTICS AND SOLDIER SYSTEMS UPDATE

Sponsored by Control Solutions LLC.

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08 Mar 18. With delay in US, South Korea turns to Europe for air-to-air missile technology. South Korea is looking to achieve European air-to-air missile technology as part of its key arms procurement offset programs.

The Defence Acquisition Program Administration, or DAPA, made public March 5 a list of 18 weapons procurement programs eligible for this year’s offset deals. Those include the integration of MBDA’s Meteor long-range missiles and IRIS-T short-range missiles into the future fighter jet, dubbed KF-X, to be locally developed by 2026.

“A key goal for these offset programs is to help local defense companies acquire foreign weapons technology or participate in arms procurement projects,” DAPA spokesman Kang Hwan-seok said. “If our small and mid-defense companies, in particular, have the opportunity to join key arms procurement programs as suppliers, the competitiveness of domestic defense technology could leap forward.”

Among the offset deals, the DAPA puts a priority on receiving the transfer of air-to-air missile technologies for the twin-engine KF-X fighter, the spokesman noted.

Last year, the DAPA signed a contract with European consortium MBDA to equip the KF-X with the 100-kilometer-range Meteor missile.

“It’s not sure if MBDA would offer to transfer some of the Meteor technology,” he said. “We’ll talk with the partner with all options on the table.”

Originally, the DAPA sought to fit the KF-X jet with U.S. missile systems, such as Raytheon-built AIM-120 and AIM-9 Sidewinder missiles. But the U.S. government has yet to approve the missiles’ KF-X integration.

“The DAPA requested the U.S. government to provide information about the integration of missile systems into aircraft but has yet to get it,” said an official at the DAPA’s aircraft business bureau, who spoke on condition of anonymity. “We understand that the U.S. government approval for provision of information on air-to-air missiles has been delayed.”

The official said, however, the agency is still open to the possibility of U.S. air-to-air missile integration into the KF-X jet.

“Now we plan to arm the KF-X with European missiles due to U.S. export license problems, he said. “If the U.S. government shows a positive sign of offering its air-to-air missiles for the KF-X, we’ll discuss it.”

U.S. disapproval of the transfer of technology for active electronically scanned radar has bruised South Korea’s KF-X ambitions. As part of an offset deal for 40 F-35As, Lockheed Martin — the main partner for the KF-X — agreed to consult with the U.S. government over the transfer of ASEA and three other aircraft technologies.

However, the DAPA received notice of refusal and inevitably changed its direction to locally develop the AESA radar. The technology transfer roadblock has delayed the KF-X timeline.

Led by Korea Aerospace Industries, KF-X development began in 2016 with the goal of producing six prototypes by 2021. Indonesia’s state-run defense firm PT Dirgantara Indonesia is the only partner for the $8bn project, responsible for 20 percent of development costs. About 120 KF-X aircraft are to be produced by 2032 to replace the South Korean Air Force’s aging fleet of F-4s and F-5s.

South Korea’s KF-X Block 2 would have an internal weapons bay, and Block 3 is expected to feature stealth technology comparable to the F-35.

Besides the KF-X missile integration, the DAPA also seeks offset deals on other weapons acquisition programs. They include efforts to upgrade the direct infrared countermeasure system for the C-130H fleet; acquire a long-range ballistic missile detection radar; upgrade the CH/HH-47 cockpit and engine; and procure a close-in weapon system for the Ulsan-class Batch III frigate.

The DAPA estimates the value for these offset programs to reach some $690m.

“If we export 80 percent of the acquisition value again, about $550m of export value is to be generated,” the DAPA spokesman said. (Source: Defense News)

08 Mar 18. Rheinmetall intensifies push to enter US Army’s vehicle protection program. Germany company Rheinmetall has made another push to show the U.S. Army that it has a ready and working active protection system. The company’s marketing effort this week at its Germany-based proving grounds comes as potential fiscal 2018 funding would cover the qualification of another APS for Army combat vehicles waiting in the wings for congressional approval.

The company hosted a number of U.S. Army representatives March 7, firing three RPG-7Vs at its active defense system (ADS), a distributed APS configuration — as opposed to a launcher-based APS system. The ADS uses an explosive charge to blast incoming weapons off their paths in extremely close proximity to the vehicle. The explosive cuts at a downward angle on a threat roughly 1 meter from the vehicle’s hull, disabling the threat’s main charge and drastically minimizing an explosion.

The U.S. delegation present for the demonstration included Elizabeth Miller, the deputy product manager for the Army’s vehicle protection systems, and Clifton Boyd, the deputy project manager for the Stryker brigade combat team effort.

Putting ADS to the test

Rheinmetall took pains to challenge the system in front of the delegation, cluttering the environment around the system, which was positioned on a rig to represent a combat vehicle.

Using old cars and mannequins, the company painted a picture of a crowded urban marketplace. And though unplanned, the demonstration was performed in a mix of snow and rain, adding to the complexity.

For the demonstration, Rheinmetall crafted a scenario that could occur during combat operations:

Two roadside bombs detonate in front of and behind a convoy of combat vehicles as they move through a crowded marketplace, causing the vehicles to come to a halt. A suicide bomber in a car then drives into another car and explodes.

As the explosion causes mayhem around the convoy, two rocket-propelled grenades are fired, one aimed directly at the ADS system and another at a vehicle behind the rig. The second RPG was meant to demonstrate that the ADS system will only trigger if the RPG is directly headed toward the system.

Rheinmetall’s Rapid Obscuring System, or ROSY, was supposed to deploy, enshrouding the vehicle in thick smoke to deter further RPG attacks, but a small piece of shrapnel from a previous explosion severed a wire connecting the system on the rig and it failed to work.

With the vehicle still visible to the attackers, another RPG is fired at the system.

When the smoke clears, the ADS system’s rig shows clear signs it worked. The only evidence of an RPG attack are small pock marks on one side of the rig and white residue on the other side.

Rheinmetall subsequently demonstrated ROSY using a small Polaris ultralight RZR vehicle equipped with the system. The vehicle drove through the scene, deploying smoke. In less than a second, nothing in the area was visible.

Rheinmetall sets sites on US

More than a year ago, the Army determined it needed to field an interim APS solution for the Abrams tank as well as the Stryker combat vehicle and the Bradley Infantry Fighting Vehicle. The service decided to rapidly assess off-the-shelf APS systems to fulfill an urgent operational need after failing — over a 20 year period — to field an APS system.

The Army’s program manager for APS has said if more funding became available to qualify another system, ADS would be at the top of the list and came in a close second in a design runoff against Iron Fist.

The Army ultimately selected three different systems: Israeli company Rafael’s Trophy system, which is deployed in the Israeli Army, for the Abrams; Iron Fist from IMI Systems, another Israeli company, for the Bradley; and Herndon, Virginia-based Artis’ Iron Curtain for the Stryker.

While the Army has stayed on track with Abrams, due to a combination of earlier funding availability and qualifying an already fielded system, it has struggled to stay on schedule with the other two configurations. Iron Curtain is six months behind, and Iron Fist is delayed by eight months.

Col. Glenn Dean, who is in charge of the program, told Defense News in a recent interview that Iron Curtain turned out to not be as mature as the service envisioned and that there was some “friction on the test range.”

Unlike ADS, Iron Curtain uses a projectile-like countermeasure to defeat threats before they have a chance to explode. And similar to the German system, Iron Curtain takes out incoming threats very close to the vehicle.

With Iron Curtain’s fate uncertain, Rheinmetall has an opportunity to swoop in if it receives FY18 government funding to qualify its system with the U.S. Army.

The demonstration comes at an important time, as Congress could potentially pass the FY18 defense budget this month. The upcoming deadline for a continuing resolution will force Congress to either vote to fund the Defense Department at last year’s levels or finally reach a budget deal.

A growing track record

Rheinmetall believes its testing and demonstrations performed over many years on a variety of combat vehicles makes it ready to step up to the task for the U.S. Army. The company has already sold the system to a non-NATO country.

Rheinmetall wouldn’t name the country, but it has been publicly announced Singapore bought the system for its Leopard tanks.

Rheinmetall has extensively tested the system for the Swedish government and for Germany, and it has formulated designs for integration onto a wide variety of vehicles to include an eight-wheel drive vehicle similar to the Stryker.

The system has successfully demonstrated it can defeat anti-tank rounds, anti-tank guided missiles and decoy ATRs.

During tests with the Swedish Army, 76 percent of shots left zero residual penetration on the vehicle. The rest of the shots — save 6 percent — left damage measured in millimeters. The remaining 6 percent of the shots were undefeated, resulting in full penetration, according to Ron Meixner, an engineer at Rheinmetall.

He blamed the undefeated shots on the specific detonator used inthe test. The system now has a new detonator that is safer and more reliable, according to Meixner, and “current trials show that this problem has been eliminated.”

The success rate for residual penetration of less than 20 millimeters is 94 percent, he added.

And because the system is designed to defeat an incoming threat at close proximity, there is a wider radius around the vehicle where soldiers can safely operate and where civilians can be present without being harmed by collateral damage, Meixner explained.

One mannequin’s plastic head was found in a pool of mud on the range post-test, its body still standing. The rest of the mannequins were simply splattered in mud.

For APS systems that defeat threats farther away from the vehicle, the area where soldiers can safely operate near the vehicle is more limited.

The system’s radar is also capable of weeding through the clutter of a busy urban environment and can precisely distinguish the type of incoming threat. That way the system can fine-tune its response depending on what kind of projectile is fired at the vehicle, Meixner said.

Rheinmetall has done everything it can to confuse the system’s radar, including building a leaf tosser to send leaves into the air around the system in an attempt to throw the system off. But the radar has been able to detect threats appropriately in every scenario the company has thrown at it.

And while many radars turn vehicles into easy targets in an environment where an adversary can detect signals in an electromagnetic environment, the radar in ADS is low-power enough to limit its detection in the spectrum, according to Meixner.

Increasing appetite

APS systems have been in development for roughly 40 years. The Russians first developed a system in the 1970s. But it’s only now that countries, including U.S., are getting serious about the capability.

Those looking for APS now include a number of European countries. Poland, for instance, is serious about procuring something to protect its combat vehicles. Several military representatives also attended the March 7 demonstration from the Spanish Army and said they were conducting a study to determine a requirement for APS.

Meixner theorized as to why countries are now just getting on board. “You have for the first time an autonomous system on the battlefield that is firing just by the decision the system itself makes, and of course this is really scary.”

But Meixner equated the ADS system to an air bag, another autonomous system with explosives set up to respond on its own when a car is in a crash.

Yet, Rheinmetall has taken extra steps to ensure the safety of the system. The German government aided in funding safety certification of the system and signals — perhaps a sign that Germany intends to ultimately field ADS to its combat vehicles, too. (Source: glstrade.com/Defense News)

08 Mar 18. Singapore Deploys ASTER-30 Surface-to-Air Missile Defense System. Singapore has deployed the ASTER-30 Surface-to-Air Missile System, manufactured by MBDA, ordered under a contract signed in 2013.

According to Defense Aerospace, Singapore Defense Minister Ng Eng Hen confirmed the delivery of the system in a speech to Parliament’s defense committee on March 2. This marks the first time a non-European nation has deployed the ground-launched version of the Aster medium-range missile.

“Our skies will be better protected with advanced weapon systems,” Ng said on March 2, adding that “We also recently added the ASTER-30 surface-to-air missile system.” The Aster 30 is also included in an infographic illustrating the most capable in-service weapon systems.

The ASTER-30 will allow the city-state to counter multiple threats from fighter jets, helicopters, drones and precision guided missiles, according to the contract.

The ASTER-30 system, used by countries like France and Italy, is expected to provide the city-state with an anti-missile and anti-aircraft range of up to 70 kilometers (43.5 miles).

“The ASTER will allow us to engage multiple threats simultaneously and from a longer distance. It will complement the [Israel Aerospace Industries] SPYDER, which we have already operationalised – it is a mobile, shorter-range, quick reaction ground-based air defence system – and together, they will provide a layered air defence shield,” Ng Eng Hen had said during the deal announcement in September 2013.

Although the Aster 30 was only recently delivered, it would likely already be part of the Air Force Island Air Defense (IAD) system of the Republic of Singapore Air Force (RSAF). (Source: Google/Defense World.net)

08 Mar 18. Today MBDA Deutschland and Lockheed Martin (NYSE: LMT) announced a new joint venture to pursue the next generation Integrated Air and Missile Defense System, “TLVS,” for the German Bundeswehr. The joint venture is expected to become the prime contractor for the new system, which is currently being negotiated with Germany’s procurement office for the Bundeswehr, BAAINBw.

Gregory Kee of Lockheed Martin and Dietmar Thelen, representing MBDA, will lead the company from the MBDA Deutschland office in Schrobenhausen, Germany. The company will also have operations in Dallas, Texas; Huntsville, Alabama; and Syracuse, New York; as well as locations in Ulm and Koblenz, Germany. Kee and Thelen both have extensive backgrounds with the armed forces, the North Atlantic Treaty Organization (NATO), and defense procurement organizations and have a strong experience in military, industrial and international affairs.

TLVS will leverage the development results and experiences from the $4bn investment of the trilateral MEADS program (U.S., Germany and Italy) and deepen the U.S. – European partnership through a continued, shared commitment to local industry, safety and security.

“With this joint venture, we will have the agility and ability to successfully make timely decisions in an integrated fashion. We will also have direct access to the most advanced test and simulation facilities and the pooled expertise and resources of MBDA and Lockheed Martin. That’s how we’ll bring this important defense program to fruition for Germany and NATO,” said Thomas Gottschild, managing director of MBDA Germany. “We feel responsible and committed to support the German Armed Forces, namely the German Air Force, in establishing its next generation Integrated Air and Missile Defense System.”

TLVS is a modern system that will transform Germany’s defense capabilities and enable this key NATO framework nation to set an important precedent in how neighboring nations address current and evolving threats for decades to come.

“We have partnered with MBDA Germany to bring air and missile defense solutions to life for more than 15 years. This joint venture takes our partnership to the next level, and we are excited about the possibility of delivering modern missile defense technology that will help Germany defeat current and future threats,” said Frank St. John, executive vice president of Lockheed Martin Missiles and Fire Control. “We support Germany’s role as the lead framework nation for air and missile defense for NATO and believe the MEADS-based TLVS system is the next-generation solution that will provide the long overdue 360-degree, mobile air and missile defense coverage they need to accurately identify and defeat threats.”

08 Mar 18. Israeli Air Force declares SPICE 1000 operational. The Israeli Air Force (IAF) announced on 7 March that the Rafael SPICE 1000 guided bomb had reached initial operational capability (IOC) on its F-16C/D Barak fighter aircraft following a series of trials. The IAF said the guided bomb was integrated in recent months by the 190th and 110th Fighter Squadrons, which operate F-16C/Ds out of Ramat David Air Force Base in northern Israel. As part of the IOC process, the IAF defined the Spice 1000’s wartime operational procedures. “The tests were completed successfully in August [2017] and the munition was officially integrated into operational activity,” it stated. F-16I and F-15 squadrons are next in line to receive the weapon. (Source: IHS Jane’s)

07 Mar 18. Iran’s Russian Anti-Aircraft Missile Now Operational, U.S. Says. Iran tested and deployed a Russian-made anti-aircraft missile system last year that has long worried U.S. and Israeli military officials because it gives the Islamic Republic a “generational improvement in capabilities,” the Pentagon’s Defense Intelligence Agency disclosed.

Russia delivered the SA-20c SAM system in 2016, providing Iran with its most advanced air-defense system. Now, Iran has “the flexibility of a highly mobile, long-range, strategic surface-to-air missile,” Lieutenant General Robert Ashley, the DIA director, said in written testimony submitted Tuesday to the Senate Armed Services Committee.

Israeli Prime Minister Benjamin Netanyahu, who’s visiting Washington this week, is pushing the Trump administration to take stronger action to counter Iran’s role in the war in Syria and its provision of increasingly sophisticated weapons to its allies in the Lebanese militia Hezbollah. While Trump has vowed to stem Iran’s growing power in the region, the U.S. has maintained that America’s combat role in Syria is limited to preventing a revival of Islamic State terrorists.

Strait of Hormuz

The fielding of the SA-20 showed that Iran “continues to improve its conventional capabilities to deter adversaries, defend its homeland, and control avenues of approach –including the Strait of Hormuz — in the event of a military conflict,” Ashley said in his submission to the Senate panel. “We expect Iran’s modernization priorities to remain its ballistic missile, naval, and air defense forces, with new emphasis on the need for more robust combat air capabilities.”

The deployment of the SA-20 underscores the value of Israel’s purchase of Lockheed Martin Corp.’s stealthy F-35 jet. It also caps a decade of objections by the U.S. and Israel against Russia selling Iran the weapons system.

In 2008, General Michael Moseley, who was Air Force chief of staff, told reporters

that Iran’s capability to defend itself against air strikes would take a “quantum leap” when it deployed the advanced Russian anti-aircraft system.

“The SA-20 is a big deal,” Moseley said at the time. “It is a quantum leap. If you put an SA-20 up against the Washington Monument, you’ve got about a 100-mile range with that thing — you can engage aircraft as far as” Philadelphia, he said.

In 2010, Army General David Petraeus, who was head of U.S. Central Command at the time, said the weapons were among enhancements Iran sought to its “anti-access” capabilities designed to prevent the U.S., Europe and Gulf nations from entering the Strait of Hormuz in a crisis.

(Source: Defense News Early Bird/Bloomberg)

08 Mar 18. MBDA studies Sea Venom for surface-launched coastal defence role. MBDA has launched an internal study to evaluate the application of its Sea Venom/Anti-Navire Léger (ANL) lightweight medium-range anti-ship missile in a surface-launched role, as part of a networked multilayered coastal defence solution.

Co-funded by the governments of France and the United Kingdom, Sea Venom/ANL is a 100 kg drop-launch high-subsonic sea-skimming effector developed by MBDA to meet the joint requirements of the UK Royal Navy (RN) and French Navy for a future shipborne helicopter-launched anti-ship missile. In RN service, Sea Venom is mandated under the Future Anti-Surface Guided Weapon (Heavy) requirement to equip the Wildcat HMA2 helicopter, and will replace the capability previously delivered by Sea Skua anti-ship missile; in French Navy service the missile will equip the Hélicoptère Interarmées Léger (HIL – Joint Light Helicopter) rotary-wing platform. Sea Venom/ANL incorporates an imaging infrared (IIR) seeker (with space and weight provisions for an additional semi-active laser [SAL] guidance channel), advanced inertial navigation guidance, a high-speed two-way datalink for operator-in-the-loop control, and a 30 kg class semi-armour-piercing blast/fragmentation warhead. SAL guidance, if enabled, would allow for the engagement of targets outside the line of sight in concert with third-party laser designation. Capable of flying a fully autonomous ‘fire-and-forget’ profile, operator-in-the-loop control will enable capabilities such as in-flight retargeting, aimpoint correction/refinement, and safe abort. Powered by a boost/sustain propulsion package – a fixed boost motor aft (derived from the Brimstone motor) and a mid-body rocket sustainer, Sea Venom/ANL has a given maximum range of “over 20km”. “Sea Venom has been designed primarily to be drop-launched from air platforms,” Christophe Leduc, product executive, Naval Defence Systems, MBDA told Jane’s. (Source: IHS Jane’s)

07 Mar 18. SDI Launches New Innovative 40MM Munition For Law Enforcement. Security Devices International Inc. (“SDI” or the “Company”) announces the release of its ground-breaking 40mm Collapsible Head Impact Projectile (“CHIP”) round.

The CHIP incorporates the Company’s patented collapsible head technology used in its state-of-the-art 40mm Blunt Impact Projectile (BIP).

The CHIP addresses the less-lethal market both domestically and internationally. The price point of the CHIP allows SDI to compete for international tenders where price is a key driver in the purchasing decision. The CHIP’s modular design and ease of assembly also suits it ideally for licensing of manufacturing and distribution in targeted geographic regions.

The Company has conducted third-party testing according to newly-released NATO AEP-99 Thorax Injury Risk Assessment of Less-Lethal Projectiles. The CHIP proved safe at all ranges from 0 to 80 meters.

“This testing confirms once again that the patented collapsible head technology allows for delivering a significantly greater kinetic energy in a way that is both safe and cost-effective,” said Paul Jensen, President & COO of SDI, adding that, “we think it is a real game-changer in the highly competitive market for less-lethal munitions increasingly demanded by law enforcement and corrections around the globe.”

(Source: BUSINESS WIRE)

07 Mar 18. Australia’s DST announces weapons technology partnership. The Australian Department of Defence’s research and development arm – the Defence Science and Technology (DST) Group – has announced a partnership with industry and academia to develop new weapons technologies.

The DST Group said on 6 March that the so-called Collaborative and Cognitive Weapons (C2W) programme would assist the Australian Defence Force (ADF) to “effectively defend assets and minimise collateral damage during targeted attacks”.

It added that the C2W programme is being led by defence researcher Ninh Duong. “This exciting new technology that we are developing for the ADF will provide the capability to neutralise the enemy while protecting friendly forces nearby,” Duong said. (Source: IHS Jane’s)

07 Mar 18. Missile Defense Agency Director Outlines Priorities, Threats. The United States is able to defend against current threats from ballistic missiles, but increased capabilities are needed to address emerging risks, the head of the Missile Defense Agency said here yesterday.

“The enemy continues to test at a very rapid pace; they continue to learn, and we should all be very cognizant of that,” Air Force Lt. Gen. Samuel A. Greaves said at the ninth annual McAleese/Credit Suisse Defense Programs conference here.

“Within the Missile Defense Agency, the first priority we’ve got is to continue focusing on increasing system reliability and warfighting confidence,” he told the forum.

Other priorities, Greaves said, include increasing engagement capacity and capability, and addressing advanced threats.

The U.S. ballistic missile defense system provides the nation with active defense capabilities that incorporate a variety of sensors with ground- and sea-based interceptor missiles to track, engage and destroy ballistic missiles.

“We absolutely believe that the ballistic missile defense system meets today’s threat but we need additional capability to stay ahead of the evolving threat,” he said.

North Korea ‘Not Afraid to Fail’

Failed missile tests can provide a trove of information that can lead to successes, Greaves said. North Korea is “not afraid to fail” and has been demonstrating capability at a very rapid pace, Greaves said.

“My only hope is that they’re not learning as much about failure as we are learning when we fail, because I will tell you that there’s a tremendous amount of learning that goes on when we fail,” he said.

The general pointed out the agency has a wide array of systems designed to defend the nation and its allies. It hopes to extend its sensors into space, he said, and to work in coordination with ground-based systems to fill gaps in sensors.

“It all boils down to the need to have birth-to-death custody of the threat as it’s coming your way, he said.”

Look Beyond ‘Classic Set of Capabilities’

Greaves highlighted his agency’s desire to instill confidence with the men and women in the fight. “The Missile Defense Agency starts and ends with the warfighter, the combatant commanders,” Greaves said.

Sophisticated ballistic missile technology is available on a wider scale than ever before to countries hostile to the U.S. and its allies, according to the MDA’s threat assessment. “As those countries continue to develop and exchange this technology, there is also an increasing threat of those technologies falling into the hands of hostile non-state groups,” the assessment notes.

The proliferation of ballistic missiles is increasing the number of anti-access weapons available to potential regional adversaries, according to the agency. These weapons could be used to reduce military options for combatant commanders and decrease the survivability of regional military assets.

In addition, technological advances are now making hypersonic glide vehicles and missiles flying non-ballistic trajectories practicable, the agency reports.

A new threat demands a new approach, Greaves said.

“When you look to the future, you will need to look broader than the classic set of capabilities,” he said. (Follow Lisa Ferdinando on Twitter: @FerdinandoDoD)

06 Mar 18. Additional buttstock variant for FN SCAR-SC. FN Herstal has developed a new short telescopic buttstock variant for its FN SCAR-SC subcompact carbine weapon, the company announced on 2 March.

The variant adds to the wide range of buttstock types available for this weapon, including standard telescopic buttstock; fixed buttstock; foldable buttstock; and foldable, adjustable offset buttstock for aiming and shooting with anti-riot or bulletproof helmet visor. The FN SCAR-SC is designed specifically for security forces. The 5.56x45mm calibre FN SCAR-SC is available with semi-auto or selective fire trigger mechanism and features a wide variety of accessories including a sound suppressor, and can also feed non-military ammunition. (Source: Shephard)

06 Mar 18. Two Lockheed Martin (NYSE: LMT) PAC-3 Cost Reduction Initiative (CRI) interceptors successfully intercepted two tactical ballistic missile targets recently in a test at White Sands Missile Range, New Mexico. The PAC-3 CRI intercepts support the U.S. Army’s Field Surveillance Program (FSP) ensuring the reliability and readiness of fielded PAC-3 missiles. The test also marked the tenth and eleventh successful PAC-3 CRI FSP intercepts in six years. More than sixty PAC-3 CRI and Missile Segment Enhancement (MSE) interceptors have achieved flight test success at White Sands Missile Range.

The U.S. Army-led missile defense flight test demonstrated the unique Hit-to-Kill capability of the PAC-3 family of missiles which defends against threats through body-to-body contact. The test also reconfirmed PAC-3 CRI’s ability to detect, track and intercept incoming missiles while meeting fielded reliability requirements. Representatives from the U.S. Army and current and potential Foreign Military Sales PAC-3 customers observed the test.

“PAC-3 continues to be successful against today’s evolving threats, and it remains the only combat proven Hit-to-Kill interceptor in the world,” said Jay Pitman, vice president of PAC-3 programs at Lockheed Martin Missiles and Fire Control. “Today’s global security environment demands reliable solutions. We expect PAC-3 interceptors to continue serving as an essential element in integrated, layered defense systems.”

The PAC-3 CRI and MSE are high-velocity interceptors that defend against incoming threats, including tactical ballistic missiles, cruise missiles and aircraft. Eleven nations have procured the PAC-3 missile defense interceptor: the U.S., Germany, Kuwait, Japan, Qatar, Republic of Korea, Kingdom of Saudi Arabia, Taiwan, Romania, the Netherlands and the United Arab Emirates.

A world leader in systems integration and development of air and missile defense systems and technologies, Lockheed Martin’s experience spans missile design and production, infrared seekers, command and control/battle management, as well as communications, precision pointing and tracking optics, radar and signal processing, and threat-representative targets for missile defense tests.

05 Mar 18. Estonia invites tenders for 155mm ammunition. The Estonian State Defence Investment Centre has invited submissions for tenders by 5 April for the provision of 155 mm artillery rounds for the Estonian Defence Forces (EDF) in tranches over the next five to seven years, the centre told Jane’s on 6 March. The contract’s value was quoted as EUR54m (USD66.5m) by local media.

The contract covers M107 high-explosive projectiles and propellant, as well as smoke and illumination rounds, for the EDF’s current towed and future self-propelled 155 mm artillery systems.

The EDF currently operates 155mm FH70 and 122mm D-30 towed howitzers, but between 2021 and 2026 it is expected to receive 12 South-Korean-built Samsung Techwin K9 Thunder 155mm self-propelled guns, with an option to purchase a further eight to 12 units. (Source: IHS Jane’s)

The team of Lockheed, MBDA Deutschland and Italy’s Leonardo submitted a complete proposal to the German government to develop the Medium Extended Air Defense System, or MEADS, in late 2016 with the hope the team would be on contract in early 2017.

And according to Frank St. John, that timeline has slipped by nearly two years.

“We will go through what I hope is a short negotiation process given the months that we’ve spent kind of preworking all of this. And then by the end of the calendar year or again shortly thereafter — these things never happen when you want them to — we will be under contract and will start the development of that,” St. John told Defense News in a March 5 interview at the company’s Arlington, Virginia, office.

The program in Germany is called TLVS and will include integration of Germany’s IRIS-T interceptors and the country’s own battle management system.

Lockheed Martin is expecting the German government to release a request for proposals by the end of the month — a formality since only Lockheed and its MBDA partner will submit a proposal in response.

Just putting together the proposal was a complex effort with many moving parts; so many moving part that while the team expected to deliver it by the summer in 2016, it did not submit a proposal until the end of September that year.

The MEADS program remains in limbo since the end of the technology development program between Germany, Italy and the U.S. While MEADS was intended to replace the Army’s Patriot air and missile defense system, the U.S. ultimately decided it would not procure MEADS, but paid to close out the proof-of-concept phase that ended in successful intercept tests in 2012 and allowed the U.S. to have access to the technical data package of the system.

The total investment in the proof-of-concept was roughly $4bn.

Bringing a version of MEADS to life in Germany appears to have encountered speed bumps. The German government said a year ago that it would not conclude a contract for the procurement of the air defense system before its September elections.

At the time, prime contractor MBDA’s proposal had yet to be finalized amid negotiations for MBDA and Lockheed to establish a joint venture for the implementation of TLVS/MEADS.

A defense policy spokesman of the Social Democrats in Germany’s parliament, the Bundestag, called for a stronger integration of Lockheed in the process because of teh firm’s expertise in system integration. It was also thought MBDA’s offer was incomplete and did not include Lockheed’s and Diehl’s missile systems in the deal.

Lockheed has been working with MBDA to structure a joint venture, St. John said, and that venture will respond to the impending RFP.

“It was very important for the German government that Lockheed Martin and MBDA be cooperative at the top line in responding to this requirement, and we are within a few days of having that joint-venture structure in place,” St. John said, adding that the companies have agreed on all major pieces and that “it’s now a paperwork process of getting it through the German filing process to start a new corporation, if you will.”

When asked about what appears to be a delay of nearly two years to get on contract, St. John said: “There are a couple of things that created the situation that we are in. One is this is a sole-source and the German process for doing a procurement of this magnitude sole-source is pretty deliberate, and they want to make sure they are getting exactly what they want and that they are getting it at exactly the right value. And so they are going through a pretty detailed process there.”

The government has experienced changes, he noted, and that also contributed to delays.

“They want to make sure that when they finally make the decision that they don’t have any regrets looking back,” St. John said.

Additionally, Lockheed originally proposed MEADS as it was developed by the U.S. government, St. John said. “Not everything about MEADS as it came out of U.S. development is exactly what the Germans wanted, and so there have been some detailed discussions about specific threats, specific interfaces, specific command and control unique to German use,” he said.

A missile defense shopping spree

While Lockheed continues to push for a MEADS success story in Germany, Raytheon has been closely watching the process play out. The country currently owns and operates Patriot systems, and Raytheon has proposed to the government an upgrade plan to its systems to provide the ability to detect and defeat threats from 360 degrees. The current Patriot system has blind spots.

Several years ago, Raytheon and Lockheed were jockeying for dominance in Europe as more countries in the region were in the market for medium-range air and missile defense systems.

Raytheon was nearing a major deal to sell its system to Poland while Lockheed was standing ready should the deal fall through, having offered the system to the country on numerous occasions.

Analysts thought that if Raytheon clinched a deal with Poland, other European countries would follow suit and buy the Patriot system. However, if Lockheed was able to bring MEADS online in Germany, other countries might want to buy that system, or elements of it, that could tie into Germany’s missile defense architecture.

Germany is a leader in European and NATO missile defense.

The U.S. government is expected to sign a contract with Poland for a first phase of Patriot procurement at the end of the month. And Raytheon has seen a surplus of other sales in Europe in the past several months. Romania has signed a deal for Patriot and Sweden has begun the process to buy the system, too.

It’s believed another European Patriot deal is on the verge of announcement, according to a Raytheon earnings call in January.

Despite the success in Patriot sales that Raytheon is seeing in Europe, Lockheed doesn’t believe it’s out of the game in the region.

“We don’t think that it is over with,” St. John said. “We went through a few skirmishes, we think that competition is going to continue, and that will result in better systems for the [U.S.] Army and better systems for international customers, and that is a good thing.”

The Army has also begun the process to competitively select a new 360-degree radar for its Integrated Air and Missile Defense system under development to replace the Patriot system.

“I think that the things that were discriminators for MEADS, namely that it was a 360-degree capability,” St. John said, “the fact that it was a modern system that didn’t suffer from the obsolescence issues with the Patriot system and the fact that it was an open architecture, that we could integrate with other countries’ interceptors, that could integrate other countries’ command and control, that could integrate into other countries’ radars, those things are still true, those things are still valid.”

Once Lockheed and MBDA are under contract to continue to develop TLVS/MEADS, St. John said, “we are going to see that interest continue.”

(Source: Defense News)

06 Mar 18. PN, PAF successfully test-fire C-802 anti-ship cruise missiles. The Pakistan Navy (PN) and the Pakistan Air Force (PAF) have successfully test-fired various Chinese-built radar-guided anti-ship cruise missiles to demonstrate the services’ “firepower and combat readiness”, according to a 5 March statement by Inter-Services Public Relations (ISPR): the media wing of the Pakistani military.

The test-firings took place in the North Arabian Sea on the final day of the ‘RIBAT-18’ exercise, with the C-802AK missile being launched from a PAF JF-17 Thunder multirole combat aircraft and the C-802 missile from a PN Sword (F-22P)-class guided-missile frigate.

“Missiles launched from both platforms successfully hit their intended targets, which not only re-asserts the efficacy of [the] weapon systems but also manifests the extended range of joint PN-PAF sea-air operations and desired synergy between the two services,” said ISPR. (Source: IHS Jane’s)

06 Mar 18. ST Kinetics pursues weaponised multirotor UAV development.

ST Kinetics, the land systems and speciality vehicles arm of Singapore Technologies Engineering (ST Engineering) has commenced development of weaponised tactical air and ground vehicles with the aim of demonstrating advanced prototypes by the end of 2019.

The company has commenced work on the Stinger Unmanned Aerial Multi-Rotor Gunship, which is envisioned to be a semi-autonomous, company-level reconnaissance and fire-support platform that will take the form of a modular, 60 kg-class multirotor unmanned aerial vehicle (UAV). It will be designed for ease of transportation and assembly by dismounted troops.

Although in the nascent stages of development, ST Kinetics engineers told Jane’s that they are aiming for an endurance of more than 30 minutes when the Stinger is carrying its full range of mission payloads, which will include high-definition daylight and thermal imaging cameras, a fire-control system (FCS), and a primary armament comprising the company’s latest 5.56x45mm calibre Ultimax 100 Mk8 light machine gun (LMG). (Source: IHS Jane’s)

02 Mar 18. US Army seeks Next Generation Squad Automatic Rifle prototypes. The US Army has released a Prototype Opportunity Notice (PON) for its Next Generation Squad Automatic Rifle (NGSAR) as it considers replacing the 5.56mm M249 Squad Automatic Weapon (SAW). Published on 1 March, the PON said the army intends to award up to five contracts for the design of prototype solutions, aiming to develop system demonstrators at technology readiness level (TRL) 6. The PON said the NGSAR will “combine the firepower and range of a machine gun with the precision and ergonomics of a rifle, yielding capability improvements in accuracy, range, and lethality”. It did not indicate what calibre the weapon might be. (Source: IHS Jane’s)

04 Mar 18. Raytheon to embody Maritime Targeting Capability in Tomahawk Block IV. Raytheon Missile Systems has been contracted by the US Navy to embody a new maritime targeting software load into the Tomahawk Block IV cruise missile to support a flight test and subsequent fleet release.

Awarded on 25 January, the USD627,000 contract introduces a Maritime Targeting Capability (MTC), also known as ‘Synthetic Guidance’, into the Block IV missile as the first increment of a two-phase Maritime Strike Tomahawk (MST) programme. According to the Naval Air Systems Command (NAVAIR), the MTC update will enable the Tomahawk Block IV missile to receive in-flight target updates to provide mid-course guidance to the missile so enabling it to engage a moving target at sea. Under the award, Raytheon will perform Embedded Software (OES) development needed to support a fiscal year (FY) 2018 MTC flight test. According to NAVAIR, the task will “include delivery of an OES build suitable for use in flight test and subsequent fleet release, along with the associated documentation and simulation tools”.

The development of a ‘Synthetic Guidance’ mode, leveraging the existing Tomahawk Strike Network communications infrastructure, began as a NAVAIR-led effort to identify what level of moving target capability could be introduced to the Tomahawk missile in the near term. The Naval Air Warfare Center Weapons Division at China Lake worked with NAVAIR’s Tomahawk Weapons System Program Office (PMA-280) and Raytheon to facilitate a January 2015 demonstration; additional contributions were provided by the Office of Naval Research and the Naval Surface Warfare Center facilities at Dahlgren, Virginia and Port Hueneme, California.

The synthetic guidance mode was demonstrated in Tomahawk Flight Test 402, conducted in January 2015. Launched from the DDG 51 Flight IIA destroyer USS Kidd (DDG-100) off San Nicolas Island, California, the Tomahawk Block IV missile changed its course in-flight after receiving ‘third party’ target position updates, via the Tomahawk Strike Network, from a surveillance aircraft. The missile struck a moving target ship on the Point Mugu Sea Range based on these aimpoint updates.

“It was a NAVAIR-funded effort, the whole purpose of which was to say what’s available to us, using the current weapons and capabilities, to get the weapon into the target ‘basket’,” Chris Sprinkle, Raytheon Missile Systems’ senior programme manager for Tomahawk, told Jane’s . “We showed that not only could we get into the target basket, we actually impacted the ship.”

He added, “[Synthetic guidance] leveraged the network to be able to provide rapid in-flight target updates. We’ve always had the ability [but] because it wasn’t designed for moving targets we didn’t build in the software to receive these rapid inflight target updates.

(Source: IHS Jane’s)

05 Mar 18. Delegations from eight countries watched a live fire test of the newest suite of upgrades to Raytheon’s (NYSE: RTN) Patriot™ Air and Missile Defense System. U.S. Army soldiers conducted the test using Post Deployment Build 8, or PDB-8, to fire two Patriot interceptor missiles against two tactical ballistic missile targets.

“The success of this test is proof that investment by the 14-nation Global Patriot partnership are paying off,” said Tom Laliberty, vice president of Integrated Air and Missile Defense at Raytheon’s Integrated Defense Systems business. “Through sustained investment we will continually modernize and enhance Global Patriot to keep it ahead of the constantly evolving threat.”

PDB-8 is slated for fielding with the U.S. Army and other Patriot partners later this year. It offers:

Enhanced capability against a variety of threats.
An improved Identification Friend or Foe capability.
Improved radar search capability.
Improved target detection and identification.
A redesigned Fire Solution Computer, which enables Patriot to take advantage of the PAC-3 MSE missile capabilities.
An Enhanced Weapons Control Computer which provides up to 50 percent additional processing power for software enhancements to address evolving threats.

Raytheon’s Global Patriot Solutions is the most advanced, tactical air and missile defense system in the world, providing protection against a full range of advanced threats, including aircraft, tactical ballistic missiles, cruise missiles and unmanned aerial vehicles.

02 Mar 18. British Type 26 frigates to get Lockheed missile launcher. Britain’s Royal Navy is to equip it’s new Type 26 frigate fleet with Lockheed Martin’s Mk 41 Vertical Launching System for missiles.

Warship-builder BAE Systems has signed up Lockheed Martin to deliver Mk 41s for the first three of the anti-submarine warfare frigates it has under contract. The Royal Navy is currently slated to operate a fleet of eight Type 26 frigates, with the first of the warships being handed over in the middle of the next decade to replace Type 23 frigates.

The deal brings to 13 the number of navies operating the Mk 46. The U.S., Australia, Germany and Japan are among the users of the system, however, it’s the first time the Royal Navy has purchased the system. The Type 45 anti-air destroyers operated by the British use the Sylver vertical launch system, built by France’s Naval Group, to fire its MBDA-developed Aster missiles. Each of the Type 26 frigates will be equipped with three eight-cell MK 41 VLS modules. BAE’s initial order includes nine MK 41 modules, sufficient for the first three ships of the class.

The Ministry of Defence mandated the Mk 41 buy as part of a single-source deal. (Source: Defense News)

02 Mar 18. DRDO finalises NAG ATGM development trials. India’s Defence Research and Development Organisation (DRDO) announced on 28 February that it had conducted two successful test shots of its 190 mm NAG anti-tank guided missile (ATGM) against separate main battle tank (MBT) targets at the Indian Army’s Pokhran test range in the Thar Desert in Rajasthan. The NAG ATGM is developed between the DRDO and Bharat Dynamics Ltd (BDL) under India’s Integrated Guided Missile Development Programme (IGMDP). According to the DRDO, the two test shots at Pokhran mark the completion of the NAG’s development trials, and the missile is now scheduled for induction into the Indian Army by the end of this year. (Source: IHS Jane’s)

01 Mar 18. USMC set to deploy APKWS on F/A-18 Hornet. The US Marine Corps (USMC) is preparing to introduce the BAE Systems WGU-59/B Advanced Precision Kill Weapon System II (APKWS II) into operational service on F/A-18A-D Hornet strike fighters. In a 27 February Twitter post, the Naval Air Systems Command (NAVAIR) released a photograph of APKWS loaded onto a F/A-18 aircraft belonging to VMFA-314. The image, taken the previous week, showed APKWS loaded into twin seven-cell LAU-68 F/A pods “to prepare for the weapon’s initial deployment with the aircraft”. APKWS II is a precision-guided 2.75-inch rocket system that integrates a low-cost Distributed Aperture Semi-Active Laser Seeker (DASALS) guidance section with existing Hydra 70 rocket motors and either the Mk 152 or M282 warheads. Designed as a ‘plug and play’ kit, the DASALS unit is installed between the Hydra 70 warhead and the rocket motor; the seeker aperture is divided into four elements, with each element placed on the four wings of the guidance section to provide an integrated navigation solution of the weapon. (Source: IHS Jane’s)

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08 Mar 18. Brexit throws Anglo-French FCAS programme into doubt. Dassault Aviation chief executive Éric Trappier says the Future Combat Air System (FCAS) programme is now just “marking time”.

Presenting Dassault’s 2017 financial results at its headquarters at St Cloud, Paris, Trappier said he was “disappointed” by the stalling of a programme that represented five or six years of design work in collaboration with BAE Systems in the UK.

FCAS was expected to move into a full-scale demonstrator development programme at the end of 2017, following a formal two-year feasibility study begun in November 2014 and a further 12-month study phase last year. “We wanted a contract to build a demonstrator,” Trappier says, but that has not happened.

Now, he says, attention has moved to a proposed Franco-German project that would see Dassault and Airbus design a new combat system for the 2040s, as a successor to the countries’ respective Rafale and Eurofighter programmes. Details remain under discussion, but significant unmanned capabilities, perhaps as indicated by FCAS and the Dassault-led Neuron programme, are expected.

While Dassault and Airbus work on the technical aspects, Trappier says the French and German governments will have to do the critical work of defining how the two countries will work together on the project. “The way in which we co-operate, that will be the most important point,” he says.

Neuron was a great success, he says, because the six countries involved were well-organised with clear goals. A sign of success, he adds, is that the aircraft proved reliable enough to make demonstration flights at air shows.

Dassault enjoyed a good year financially in 2017. Sales rose by more than a third to €4.8bn, with delivery of a single Rafale to France and eight to Egypt, against a total of nine deliveries of the multirole type in 2016. Falcon business jet deliveries held steady last year at 49. Net income rose 27% to €489m ($605m). The top line, says Trappier, should be about the same for 2018.

For Falcon, 2017 was marked by the cancellation of the 5X business jet owing to extensive delays on the Safran Silvercrest engine that was to power it, but 2018 is off to an encouraging start. A Pratt & Whitney Canada-powered replacement, the 6X, was launched last month, and Trappier says the market is showing signs of recovery, particularly some renewed buoyancy in the pre-owned jet market in the USA.

Dassault is ramping down output to deliver 40 Falcons in 2018, but is watching the market, he says. (Source: News Now/FlightGlobal)

08 Mar 18. NATO UAS Sense and Avoid Standard Announcement. NATO has approved its first standard for UAS Sense and Avoid: “Guidance on Sense and Avoid for Unmanned Aircraft Systems”, STANREC 4811/AEP-101. The aim of this NATO standard is to provide recommended practices regarding the development of sense and avoid systems that will enable the operation of unmanned aircraft systems in nonsegregated airspace and across borders. This document can be accessed for free from the NATO Standardization Document Database here along with other publicly available NATO UAS standards. Based on this foundational standard, NATO is initiating the development of a UAS SAA performance based standard.(Source: UAS VISION/NATO)

06 Mar 18. Cross an Airplane With a Submarine. Researchers from North Carolina State University have developed an unmanned, fixed-wing aircraft that is capable of traveling both through the air and under the water – transitioning repeatedly between sky and sea. The EagleRay XAV, which was developed with funding and assistance from Teledyne Scientific, holds promise for use in applications such as tracking and observing wildlife.

“Maintaining aerial surveillance can use a lot of energy,” says Warren Weisler, a Ph.D. student at NC State who worked on the EagleRay project. “The EagleRay can conserve energy by spending some of its time in the water.

“For example, the EagleRay could track a fast-moving pod of dolphins from the air, then spend time loitering in the water if the dolphins stop to take advantage of a good feeding spot. The EagleRay could then resume flight when the dolphins begin moving again.”

“The EagleRay could also rapidly move underwater sensors from location to location,” says William Stewart, another NC State Ph.D. student who worked on the project. “It could even perform underwater monitoring that most unmanned aerial vehicles can’t.

“For example, sonar only works underwater. If you’re seeking a sonar target, the EagleRay could fly to a site, submerge to take sonar readings, and then resume flight to take readings elsewhere. Historically, an aircraft would have to drop sonobuoys to collect sonar data.”

The project started when a team of four NC State faculty, led by Matthew Bryant, an assistant professor in NC State’s Department of Mechanical and Aerospace Engineering, won a research contract from Teledyne in 2014. Professors Kara Peters, Ashok Gopalarathnam, and Larry Silverberg served as co-principle investigators on the project. By spring of 2016, Bryant’s team had developed a fully functional prototype – and they published a paper on the work in 2017.

“A key point regarding the EagleRay design is that it is scalable – you can make larger or smaller models as needed,” Stewart says. “It really depends on the size of the desired payload, how long you’d need it to operate, and so on.”

The current model of EagleRay has a wingspan of 59 inches and is 55 inches long, weighing in at 12.6 pounds. It has a dual-use propeller, powered by an electric motor, that propels it through both air and water.

“We’re currently developing a custom controller for the EagleRay,” Weisler says. “Existing controllers aren’t designed for a vehicle that transitions from air to sea and back again – they’re designed to be one or the other, with no transition stage.”

The researchers are also refining a dynamic model of the EagleRay, for use in simulations that can be used for training purposes, to predict performance under various conditions and to refine the vehicle design.

“This project has been extremely challenging and rewarding,” Weisler says.

“Seeing it fly during field trials was exhilarating,” says Stewart.

The paper, “Testing and Characterization of a Fixed Wing Cross-Domain Unmanned Vehicle Operating in Aerial and Underwater Environments,” is published in the IEEE Journal of Oceanic Engineering. Weisler is lead author of the paper. Co-authors include Stewart, Bryant, Peters, Gopalarathnam and Mark Anderson of Teledyne. (Source: UAS VISION/NC State University News)

06 Mar 18. Elistair Launches a New Tethered Drone. Elistair has announced the launch of ORION UAS, the next generation of tethered drone systems. With a significant reduction of operating costs and staff expenses and an extreme ease-of-use, smart tethered drones are now mission-critical, offering flexibility and a broad application scope.

Designed for semi-persistent aerial surveillance and telecommunications needs, ORION UAS can achieve the most demanding missions for law enforcement, private and public safety, national security, assets protection or emergency communications and crisis management.

Mission capacity can be extended with endurance up to 10 hours and more. Fully designed for extended flight times, ORION UAS is based on strong industrial components. It integrates Elistair’s patented micro- tether system Safe-T and ensures a secured and continuous power supply from the ground. With its high-grade industrial motors and multiple redundancies including autopilot sensors, motorization, power distribution, logical controls, and an emergency parachute system, ORION UAS has been engineered to endure extensive flight times in demanding environments. The structure of the ORION drone is designed to sustain fierce winds with a maximum stability for its size-factor.

Thanks to its day and night surveillance camera combining state of the art gimbal stabilization and crystal- clear imagery with low latencies, with its X30 optical zoom, ORION UAS can detect a moving person over kilometers. Using both the Safe-T micro-tether with our high-speed and interference-free data transmission technology, and Flir and Sony leading industrial sensors, ORION UAS camera is the ultimate solution for persistent aerial surveillance

Fully automated, ORION integrates redundancies and smart emergency procedures at every level, allowing you to focus on your mission and on the data, while drastically reducing the risks for human mistakes. With its modular structure, ORION is easily carriable and deployable wherever your missions take you. (Source: UAS VISION)

06 Mar 18. Unmanned tech ambitions shape Turkey’s future military. Turkey’s government and military leaders look determined to boost a multitude of unmanned vehicle programs in hopes these indigenous systems will serve as the backbone of future operations.

Officials and analysts say increasing asymmetrical threats on both sides of Turkey’s Syrian and Iraqi borders have urged the country’s military, procurement and industry officials to step up efforts to boost existing drone programs, or launch new ones.

“A new generation of [unmanned] vehicles — land, naval and aerial — will further strengthen our arsenal,” Ismail Demir, Turkey’s chief defense procurement official, told a conference on unmanned and robotic technologies on Feb. 22. “Those systems will earn the military strategic capabilities by providing it with intelligence imagery, fire support and ammunition transport.”

“They also will provide us with lower production, operational and maintenance costs,” a senior military official said. “More importantly, we aim to reduce personnel casualties in operations.”

At a meeting on Feb. 21, Turkish President Recep Tayyip Erdogan said: “We will carry it [indigenous drone programs] a step further. … We should attain the ability to produce unmanned tanks as well [as aerial vehicles]. We will do it.”

Erdogan’s comments came weeks after five Turkish soldiers were killed in a tank while fighting in the Kurdish enclave of Afrin in neighboring Syria.

The Turkish military launched a cross-border offensive into northern Syria on Jan. 20 to fight the emergence of a “Kurdish belt” in war-torn Syria. Turkey views that possibility as a top security threat. It has listed various Kurdish groups fighting in Syria as “terrorists,” although its NATO ally the United States largely views the groups as allies on the ground.

Strategic shift

“The paradigm shift [in favor of unmanned systems] reflects two basic motives: the military’s general tendency to catch up with the most advanced technology available, and Turkey’s perceptions of threat that are increasingly asymmetrical,” according to Ozgur Eksi, a military analyst.

Eksi said Turkey’s security-threat perceptions in the last decade have visibly shifted from conventional to asymmetrical which, along with technological change in unmanned systems, has highlighted a conceptual shift.

“The military is now devoting more time and resources to systems integration and command-and-control systems involving unmanned systems to ensure a new deployment concept, while it was in the past more interested in conventional troop and systems deployment,” he said.

One aspect of increasing unmanned deployment will be the use of special forces. “The idea is to carry out surgical operations more than before, which is a natural outcome of asymmetrical warfare,” said one Gendarmerie officer. “This comes as opposed to past warfare concepts of massive troop movements in cross-border operations.”

Turkey set up a joint special forces outpost on the Turkish side of the country’s border with Syria. Special forces from both the Gendarmerie and the police gather at this camp before they are dispatched into Syria.

“It makes perfect sense to carry out operations against asymmetrical threats with fewer troops,” the Gendarmerie officer added. “The more unmanned systems should integrate into the [military] network and more [unmanned] platforms are available for deployment, the fewer soldiers will take part in cross-border operations.”

Confidence in industry

One procurement official familiar with unmanned systems said that in line with the availability of different drones, the work on integration and communications would gain importance.

“The success of various [unmanned] systems will depend on how successfully these systems will speak with each other as well as with command-and-control centers and manned systems,” he said. “This is an area we encourage local software companies to devote more of their time.”

Defence Minister Nurettin Canikli has acknowledged that one specific unmanned program — that of a remotely operated tank — is ”a challenging task and a very complex program. But he added that “there is a number of local companies that have the technology to make the ground work for this ambition. We think we can guide unmanned tanks by satellite connection.”

Katmerciler, a privately owned armored and anti-riot vehicles manufacturer, has been developing the UKAP, a remote-controlled firing platform. The UKAP’s missions include search and reconnaissance, radar-based target tracking, personnel rescue, mine sweeping, and towing.

The system can be remote-controlled from a maximum distance of 3 kilometers. It can operate for up to five hours on battery power, or eight hours with a power generator.

Military specialist Aselsan, Turkey’s largest defense company, showcased its SARP remote-controlled weapon system at an international defense and aerospace exhibition in Istanbul in May. The SARP features computer-based firing control functions, distance measurement, ballistic calculations and automatic target tracking.

Turkey’s procurement agency, the Undersecretariat for Defence Industries, or SSM in its Turkish acronym, recently posted a video showing the remote-controlled version of the Ejder Yalcin, an indigenous armored vehicle, during successful tests.

“Soon there will be a few autonomous vehicles in the field,” SSM’s chief, Demir, said. “More than 20 such vehicles will be used in Afrin.”

The Ejder Yalcin is a signature vehicle designed and developed by the privately owned armored vehicle-maker Nurol Makina. Nurol has sold hundreds of units of the Ejder Yalcin, a heavy armored combat vehicle with conventional and ballistic protection against mines and improvised explosive devices.

In addition to a number of unspecified foreign users, the Ejder Yalcin is used by both the Turkish military and the police special forces, mostly in the country’s southeast where Kurdish militants have been fighting a violent separatist war since 1984.

SSM officials said the first field tests for the remote-controlled Ejder Yalcin were successful.

SSM recently procured and delivered to the Army a batch of 43 remote-controlled heavy construction machines for filling holes and digging trenches. Those vehicles, controlled from a maximum distance of 1 kilometer, have been widely used in the Turkish military’s operations in Syria, SSM officials said.

Another new, ambitious program is the Akinci, an advanced UAV that can carry up to four rocket or missile systems compared to only two systems currently outfitted to the Turkish fleet of armed drones.

The Turkish government officially gave its go-ahead to the Akinci program during a meeting in January of the country’s top defense procurement panel, the Defence Industry Executive Committee, chaired by Erdogan.

The Akinci is being developed by Kale-Baykar, a private drone specialist that supplies most of the armed drones in the Turkish inventory. Compared to current models, the aircraft will have a longer endurance, carry a bigger payload and be more agile, according to procurement officials. The first deliveries of the Akinci are scheduled for 2021.

In March 2017, Kale-Baykar delivered a batch of six armed drones to the Turkish military. The Bayraktar TB2 system would be stationed in Elazig close to the Kurdish insurgency zones. Two of the TB2s are armed aircraft.

The Bayraktar uses the MAM-L and MAM-C, miniature smart munitions developed and produced by state-controlled missile specialist Roketsan.

Turkey’s local industry is also developing BSI-101, a signals intelligence system, for the Bayraktar to end Turkey’s dependence on U.S.-made sigint systems for drones.

The Bayraktar can fly at a maximum altitude of 24,000 feet. Its communications range is 150 kilometers. The aircraft can carry a payload of up to 55 kilograms.

Turkey’s defense minister said the country also plans to build an indigenous unmanned fighter jet. “We are hoping to give orders for the unmanned fighter aircraft by 2027,” Canikli said.

Turkey is designing the fighter jet with know-how from BAE Systems. The program, dubbed TF-X, awaits a governmental decision to select an engine. British engine-maker Rolls-Royce and Turkish government-controlled engine specialist Tusas Engine Industries are in a two-way race to win the engine contract.

Late last year, TEI completed the development phase of a program to build the country’s first drone engine. TEI’s PD170 went through successful initial tests, the company said. TEI has been working on the PD170 since December 2012 when it signed a development contract with SSM.

The 2.1-liter, turbo-diesel PD170 can reach 170 horsepower at 20,000 feet, and 130 horsepower at 30,000 feet. It can generate power at a maximum altitude of 40,000 feet. The PD170 was designed for the Anka, Turkey’s first indigenous medium-altitude, long-endurance drone.

(Source: Defense News)

06 Mar 18. Boeing Chooses Queensland for Autonomous Systems Development Programme. Boeing has announced Queensland will be the home for its new autonomous systems development program, with the three-year “rapid innovation program” expected to see the aerospace giant develop autonomous systems capability to increase the independent operation of air and sea vehicles.

During a press briefing, Boeing Autonomous Systems vice president Chris Raymond said autonomy is expected to enter both the company’s existing and new products, and explained the partnership with the Queensland government will allow the regulatory creases to be ironed out in unison with the development of new tech.

The program, the biggest investment the company has made in autonomous systems outside of the United States, will focus heavily on the regulatory side, and has been built on the existing partnership the company has with the Shell-operated, Queensland government gas initiative.

“We’ve been really excited about what we’ve been doing in Queensland … it’s really been a great effort I think, because for anything to advance, it needs resourcing,” Raymond explained.

“Apart from the financial investment, one thing we’ve really found here is all the elements of innovation: The university ecosystem, the small to medium-sized enterprise business, the technical providers we have in the supply chain, and then our own Boeing people here.

“We’ve really found it a great place to combine resources, insights, know-how, and a really like-minded focus for advancing autonomy in Queensland.”

Raymond expects the program to further the relationship Boeing has with security forces and Defence.

Also expanding on the partnership was director of Boeing Phantom Works International Shane Arnott who said the key part of the program, in layman’s terms, is to realise autonomy.

“To take that step from remotely-piloted to autonomous systems is creating the brain on board, and then the ability to talk to the systems or to create the voice for the systems to talk to each other, which is a combination of software and communications systems to enable mobile ad-hoc sort of networking capability,” he said.

“It’s all about how do you make a machine that can perceive its environment, react to stimulus by processing that information, and then communicate the outcomes from that and do that in not just a single system, but a team system.”

The company won’t be creating any new vehicles as part of this program, but rather developing systems and sorting out the regulatory requirements alongside it.

Autonomous systems were flagged by Raymond as a key growth area for Boeing.

About six months ago, Boeing organised a business specifically around autonomous systems where defence is concerned. According to Raymond, the company has invested in autonomy on the prediction that it will continue to enter the personal lives of individuals, professional products, as well as security and commercial ways of doing things.

Boeing has also ramped up a global effort around developing autonomous systems, with Raymond explaining autonomy and its associated technical elements around machine learning and artificial intelligence are expected to continue to advance.

“As an aerospace company, we’re on the leading edge, and need to stay on the leading edge of those advances as they relate to aerospace — and we view that from seabed to space,” he added. “We’ve really had a great experience developing a lot of technology already.”

According to Arnott, Boeing sees advantages in engaging in this work in Australia, in particular Queensland.

“This is the biggest investment we’ve made in autonomous systems development outside of the US and we’ve done that because of the advantages that we’ve been experiencing here in Australia — large country, low population density, progressive airspace regulator, first-class defence force, big and innovative resources industry,” he said.

In July 2016, the Queensland government announced a AU$1m investment in remotely piloted aircraft technology, expected to benefit the LNG, agriculture, mining, energy, telecommunications, search and rescue, and environmental management industries.

In addition to the cash injection, the Queensland government has partnered with Boeing, in conjunction with Boeing subsidiary Insitu Pacific, Shell’s QGC project, and Telstra, to further the drone research.

Boeing established an Australian branch of Boeing Research & Technology (BR&T) advanced research and development unit in March 2008 to better support its businesses in Australia by providing a focal point for collaboration with research and development organisations including universities, private sector providers, the Commonwealth Scientific and Industrial Research Organisation (CSIRO), and the Defence Science and Technology Organisation.

Over the course of its 22-year relationship with the CSIRO, both Boeing and CSIRO have jointly invested more than AU$100m into R&D in Australia.

The program will also complement the work undertaken by the Trusted Autonomous Systems Defence Cooperative Research Centre, taking research outcomes and developing them into “exportable commercial products” for the global autonomous market. (Source: UAS VISION/ZDNet)

02 Mar 18. Israeli Ground Units Building Drone Air Force. A visit to Israel’s increasingly tense border with Syria makes clear that the ground units of the Israeli Defense Forces (IDF) are building their own “air force.” The clear benefits of tactical drones have driven the ground forces to deploy more and more aircraft and this has reached the status of a real revolution.

When visiting the increasingly tense border with Syria, one with trained eyes cannot miss the signs — the ground units of the Israeli Defense Forces (IDF) are building their own “air force.”

The Israeli army’s air force started as “private” initiatives of senior commanders on a “initial test” basis, but the clear benefits of tactical drones have driven the ground forces to deploy more and more aircraft and this has reached the status of a real revolution.

As one would expect, the Israeli Air Force (IAF) isn’t very happy with this, but the piolts and commanders have begun to accept it as a fact of life.

“In today’s combat, the low and middle levels of forces commanders need the intelligence information in a matter of seconds not minutes. The Air Force cannot supply this data to these command levels. The only problem I see is the need to coordinate the many aerial platforms that will fill the combat zone,” Brig. Gen. (Res.) Miki Bar, former head of the IAF’s helicopters group and former commander of the IAF’s Palmahim air base, said Feb. 20. The process is a natural one and no objection can stop it, he believes.

Since Israeli companies developed the first operational drone in the early 1980’s, the Air Force has handled all of them.

The only drone operated regularly by the IDF’s ground units at first was the Elbit SkyLark, used mainly by artillery units. Now the Sky Rider drone unit of the Israeli artillery corps is performing services for many other branches of the Israeli Defense Forces (IDF). “We are getting more systems and new advanced payloads,” the deputy commander of the unit told Breaking Defense.

The ground units’ operational requirements are for drones ranging from small tactical units, to multi rotors that will be operated directly by field commanders and even for “personal helpers” for soldiers in special missions.

One of the first requirements that came from the ground units was for an unmanned platform to supply frontline units with ammunition and other supplies. In recent conflicts, especially in Lebanon, this mission became critical and the decision was made to give the ground units their own organic capability.

This demand will probably be met by a design that has earned the name “Flying Elephant,” designed by Israeli drone manufacture. The Flying Elephant, designed to carry 500kg, consists of a motorized parafoil with servo systems.

Let’s look at the three broad categories the army is fielding. The first category is fixed-wing hand- or light-catapult takeoff drones designed to help forces in the maneuvering phase of battle. “It has the speed to get very fast to areas of interest and supply the needed real time intelligence.” a high ranking officer from the IDF’s ground forces command told Breaking Defense.

The second category are small multi rotors aircraft that can be very useful in urban warfare “Such a silent system can help a fighting unit to locate hostiles in densely populated areas” an IDF source said.

The third category is loitering UAV equipped with warheads, but these will be operated by at division level, not by small units.

This operational need was identified by Israel Aerospace Industries (IAI) who developed the Green Dragon, a silent, all-electric Electro-Optically guided munition able to loiter for 90 minutes and carry a 3kg warhead

IAI has also developed the Rotem, a miniature quadcopter that carries a munition. It can be operated by a single soldier and has a 30-minute flight time. It is equipped with a thermal camera and with 450g fragmentation warhead. According to IAI it can be directed to fly through a window.

IAI is also developing the Panther and Mini Panther VTOL systems. “The ground forces have identified an urgent requirement for UAS that can precisely attack targets before the infantry gets to the fighting area,” a company source says.

Earlier this year Elbit systems acquired 19 percent of Flying Production in an effort to penetrate into the multi-rotor drones market and compete for the IDF tender for such a system. Flying Production specializes in multi-rotor drones and recently has unveiled three more versions that can carry payloads of up to 3kgs and have an endurance of 70 minutes.

Finally, there is another category, dubbed by some the “soldier’s personal helper.” One good example is the Rafael micro-tactical intelligence gathering hovering system, dubbed Maoz. It’s carried in a small canister stowed in the personal gear of an infantry soldier. After a mission it can be returned to the canister for further use.

According to Rafael, a soldier can carry a number of these hovering systems in his personal gear, together with a small control unit. Operation is simple and according to the Israeli company, the “Maoz” can hover for 15 minutes and can be operated after battery replacement for 50 hours without maintenance. It can hover up to a distance of 1 kilomete from its operator in an urban area and 5 kilometers in an open area. Hovering altitude is 100 meters in an open area and 50 in an urban one. Rafael plans to equip the micro system with a day CCD Coupled camera and with a special night vision sensor.

Bottom line: the skies over the Israeli border zones will be filled with micro, mini and small UAS operated by the ground forces.

The Israeli Air Force will operate the bigger drones. Time will tell what coordination is needed between the two fleets. (Source: Breaking Defense.com)

01 Mar 18. China’s CASC readies improved CH-4 UAV. China Academy of Aerospace Aerodynamics (CAAA), the flight technology development arm of defence prime China Aerospace Science and Technology Corporation (CASC), is developing a new and more capable variant of its strike-capable Cai Hong 4 (Rainbow 4, or CH-4) medium-altitude, long-endurance unmanned aerial vehicle (UAV) under the designation of CH-4C, Jane’s has learned. Company sources revealed that several of the enhancements planned for the new variant had been validated – alongside a new 100 kg-class laser-guided bomb (LGB) and new electronic reconnaissance payloads – during a six-day live-fire trial in north-western China in late January. Although specific details of the CH-4C development could not be disclosed at this stage, Jane’s understands that new features will include an improved load carrying capacity and increased electrical power generation, as well as an updated data processing and electronic architecture. The baseline air vehicle’s build quality and flight control systems have also been upgraded to improve its ability to operate in adverse weather conditions.

“The updated electronic and power architecture enables a wider array of weapons and payloads to be integrated to the air vehicle, ensuring that it can readily accept next-generation technologies and remain relevant well into the future,” company officials explained. “The new architecture also facilitates the integration of third-party equipment that a customer may want the UAV to carry.” CAAA’s engineers have also taken the opportunity to conduct integration tests on a new electronic reconnaissance pod, which was recently developed to fulfil an unspecified customer’s requirements. The payload is designed to be carried on the underbelly hardpoints of CH-4 test vehicles configured for line-of-sight (LOS) and satellite communications-enabled operations. (Source: IHS Jane’s)

05 Mar 18. China Prepares Improved CH-4. China Academy of Aerospace Aerodynamics (CAAA), the flight technology development arm of defence prime China Aerospace Science and Technology Corporation (CASC), is developing a new and more capable variant of its strike-capable Cai Hong 4 (Rainbow 4, or CH-4) medium-altitude, long-endurance unmanned aerial vehicle (UAV) under the designation of CH-4C.

Company sources revealed that several of the enhancements planned for the new variant had been validated – alongside a new 100 kg-class laser-guided bomb (LGB) and new electronic reconnaissance payloads – during a six-day live-fire trial in north-western China in late January.

Although specific details of the CH-4C development could not be disclosed at this stage, Jane’s understands that new features will include an improved load carrying capacity and increased electrical power generation, as well as an updated data processing and electronic architecture. The baseline air vehicle’s build quality and flight control systems have also been upgraded to improve its ability to operate in adverse weather conditions.

CAAA’s engineers have also taken the opportunity to conduct integration tests on a new electronic reconnaissance pod, which was recently developed to fulfil an unspecified customer’s requirements. The payload is designed to be carried on the underbelly hard-points of CH-4 test vehicles configured for line-of-sight (LOS) and satellite communications-enabled operations. (Source: UAS VISION/Jane’s 360)

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CYBER, EW, CLOUD COMPUTING AND HOMELAND SECURITY UPDATE

Sponsored by Spectra Cyber Security Solutions

Cyber Security Solutions

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29 Jan 18. Incident Reporting Key to New Cybersecurity Rule.

By now, most companies in the Defense Department supply chain know they were to implement a series of cybersecurity safeguards by no later than Dec. 31 in order to protect “covered defense systems” from being stolen by foreign adversaries.

The duty arose from the mandatory clause in the Defense Federal Acquisition Regulation Supplement 252.204-7012 titled, “Safeguarding Covered Defense Information and Cyber Incident Reporting.”

The National Institute of Standards and Technology spelled out the measures that must be taken in Special Publication 800-171.

The regulation encompasses Defense Department prime contracts and flows down, without alteration, to all levels. Many companies, especially smaller and medium-size ones, are challenged to address the special publication’s 110 individual requirements.

Naturally, because of the deadline, many focus on the “front half” of the regulation — safeguarding — without much attention to the “other half” — incident reporting.

Defense contractors need to give incident reporting equal attention — and not simply because the obligation is present in the regulation.

The importance of reporting is best understood in the context of experience that led to this regulation. Over a period of many years, and in too many examples to recount, valuable defense-related technical data and contractor intellectual property has been “exfiltrated” from contractor information systems by acts of cyber espionage. The regulation, therefore, aims to improve contractor security and mitigate those risks.

The department defines a cyber incident as “actions taken through the use of computer networks that result in a compromise or an actual or potentially adverse effect on an information system and/or the information residing therein.”

Unauthorized access to sensitive but unclassified technical information dilutes national military capability, denies us the advantage of favorable technological asymmetries and enables our adversaries to copy accomplishments and impair missions.

But recent experience also teaches us that no network security is perfect. The new controls will make it harder for adversaries to reach and steal technical information and may limit the information taken. However, the possibility of a breach cannot be denied and will not be eliminated by this regulation.

This brings us to the second set of purposes of the regulation. It is important for the Defense Department to know what has been taken so that it can conduct a “damage assessment.”

The damage assessment has several purposes. It can determine the impact of compromised information on U.S. military capability underpinned by the technology. It can reveal how the compromised information may enable an adversary to counter, defeat or reverse engineer U.S. capabilities. It also focuses on the compromised intellectual property impacted by the cyber incident, not the compromise mechanism.

A special organization with the office of the secretary of defense — the joint acquisition and protection cell — has been created to integrate and coordinate analysis of adversary exploits that compromise covered defense information. The cell is a key recipient of contractor cyber incident reports — and to perform its assignment, it needs incident reports that are timely, complete and, where possible, accompanied by access to compromised materials.

There are four components to the reporting obligation: the cyber incident report, to be furnished within 72 hours of discovery; submission of malicious software, if isolated; cooperation, should the department undertake a forensic investigation; and flowdown, to inform of breaches at any supply chain level.

Companies should review DFARS Procedures, Guidance and Instruction 204.73. It shows that the department expects contractors to cooperate in the damage assessment. The government may assess the sufficiency of a contractor’s cyber measures. It may review the system security plan to evaluate “whether any of the controls were inadequate, or if any controls were not implemented at the time of the incident.”

Subcontractors are required to report directly to the department and to inform their prime of the DoD-supplied report number. The regulation does not require subcontractors to provide the full incident report to their prime.

Companies subject to the regulation should not wait until after an incident has occurred to figure out what to do.

The special publication contains three discrete safeguards for incident response. These require companies to: establish an operational capability for incident response and prepare adequately; track, document and report incidents to appropriate authorities; and test the organizational response capability.

When there is “discovery” of a cyber incident, the affected contractor shall review its network for evidence of compromise, identify covered items that may have been affected, determine whether the incident affects it’s ability to provide “operationally critical support,” and rapidly report the incident directly to the Defense Department.

In addition to a “cyber incident report,” contractors are to submit malicious software, if detected and isolated, to protect affected media, and if requested, to provide the department with access to the affected information systems for forensic analysis.

The report is to be filed within 72 hours of “discovery.” Apart from information about the affected company, the report is to include the numbers of contracts affected or potentially affected, the “impact to covered defense information,” Defense Department programs, platforms or systems involved, the type of compromise — such as unauthorized access, unauthorized release — description of the technique or method used in the attack, and incident outcome.

Incident reporting obligation, and department actions that follow, are further examples of the difficult tension between the security objectives and industry capability. National security considerations virtually demand improved protection of controlled technical information on contractor systems. Both contractors and the Defense Department need to know when and how attacks occur, and what information was compromised or put at risk.

In the cyber domain, speed matters as reports made even days after an event may be too late. Yet, considered carefully, the reporting requirements can be very difficult to accomplish, for companies of all sizes, excepting perhaps the most sophisticated defense contractors.

There are many tough questions that every contractor has to answer to comply with the incident reporting obligations. Such as: How is it determined whether there has been an “incident” that has an effect upon an information system and/or the information residing therein?

What constitutes “discovery” of a cyber incident and, in the course of event detection, assessment and response, when does “discovery” occur?

When is there a “compromise” to information or an information system, and can this occur where there is no evidence of exfiltration or unauthorized access?

How do contractors decide which of their “information systems” has been affected?

How is “malicious software” to be “detected and isolated” and is this a capability companies must have ready before an adverse event, and what tools are needed and who bears the expense of isolating “malicious software” and preserving computing “media?”

Does the Defense Department decide unilaterally what is “necessary” access to additional information or equipment for forensic analysis, and will it pay the extraordinary costs?

What measures are contractors to use to make a “damage assessment” if required to deliver one to the contracting officer, and what documentation should companies have in-hand of incident reporting processes and plans in advance of an event?

How are companies to determine which of multiple contracts have been or may have been impacted?

And finally, what methods are available to determine whether information that has been compromised is “covered defense information” and, if so, which of their categories were affected?

These and related questions may have already been well understood — and answered — by the top tier of defense contractors. For the great majority of the defense supply chain, however, there is no reason to assume the questions now are understood or resolved.

Similar observations may be made about Special Publication 800-171 as the basis of cyber safeguards which must be implemented by all defense contractors. Each of the 110 requirements is expressed in a single sentence. Read in isolation, most would agree that conceptually every one makes sense and describes measures that any prudent business would implement independent of regulations or contract requirements.

The “generality” of the requirements contributes to their “flexibility,” but also is the source of uncertainty. Many interpretations are possible and many approaches are plausible for each requirement. A range of security outcomes will result, even for companies similarly situated in the supply chain.

In the absence of any established reference for self-assessment, and without government resources to evaluate or approve contractor measures, requiring activities will doubt their most critical information receives the protection it deserves. And contractors will worry that the department’s reviewers will find their security measures “inadequate” when an assessment follows a breach and cyber incident report.

Ostensibly, the regulation offers assurance to companies. It states that “a cyber incident that is reported by a contractor or subcontractor shall not, by itself, be interpreted as evidence that the contractor or subcontractor has failed to provide adequate security on their covered contractor information systems, or has otherwise failed to meet the requirements of the [-7012 Safeguarding] clause…”

The department needs to clarify that companies who make a timely report, in good faith, with as much information as is reasonably available, receive a “safe harbor” so that the cyber incident does not become the first in a series of steps leading to contract liability or other sanction.

Without such a policy, unfortunately, companies will delay making decisions to report, decide not to report events in the “gray area,” and limit what they report — all consequences contrary to the prime objective of informed damage assessment following loss of information compromise.

More generally, the department needs to confront a fundamental problem. The universe of contractors subject to the regulations includes many companies — perhaps thousands — for whom compliance with security requirements will be costly and burdensome. And for some, if not many companies, preparation for incident reporting may be deferred as an expense necessary only if — not “when” — a breach occurs.

Still other companies will decide not to take the compliance risk or absorb the implementation costs necessary to satisfy the regulation. They will exit the defense industrial base — damaging supply chains and denying the department’s access to innovation.

On July 21, President Donald Trump issued Executive Order 13806, to promote U.S. sources and strengthen the U.S. manufacturing and defense industrial base. Care is needed to reconcile cyber defense and reporting obligations with near-term program performance objectives and important long-term industrial base goals.

The Defense Department must take a “holistic” view to security, because unreasonable or unaffordable demands in one area may have unacceptable results elsewhere.

Moreover, in the pursuit of cyber, supply chain and industrial security, it should embrace new strategies and methods. Specifically, it should promote greater use by its suppliers of the cloud for managed security services and treat commercial cloud as protected “enclaves” where necessary investment and specialized resources can be leveraged at scale.

The cloud is not a panacea. The department correctly has concerns about on-site security at the cloud client, and about the method of connection to the cloud. But, as more companies move from attempts to elevate “premises security” to place greater trust in qualified cloud providers, it is likely they will achieve superior security and possess better means to detect, report, respond and recover from adverse cyber events.

Goals common to the Defense Department and industry are affordable, practicable, expedient and effective improvements in enterprise security — and enhanced response and resilience when attacks do occur. Promoting greater use of the cloud may produce better results on “all counts” for all stakeholders — mitigating both breach risk and consequence. (Source: glstrade.com/National Defense)

08 Mar 18. US agencies need to join efforts against Russia cyber threat. US government agencies are not adequately coordinating efforts to counter the cyber threat from Russia, even as Moscow conducts a ‘campaign of destabilisation,’ the commander of NATO forces in Europe warned on 8 March. US General Curtis Scaparrotti told lawmakers that Russia is working to break up the NATO alliance, partly through its online operations to spread false information. Scaparrotti told the Senate Armed Services Committee, which provides civilian oversight to the military: ‘Russia is carrying out a campaign of destabilisation to change the international order, fracture NATO and undermine US leadership around the world.

‘Throughout Europe, along its periphery in the Middle East and beyond, Russia has demonstrated a willingness and capability to exert influence, spread disinformation and undermine confidence in NATO. … At sea, on land, in the air – frankly, every domain – Russia’s increasingly modernised military is operating at levels not seen since the Cold War.’

Democratic Senator Jack Reed asked Scaparrotti if he thought there was a ‘unified effort’ among all US government agencies to confront the Russian cyber threat.

Scaparrotti said: ‘I don’t believe there’s an effective unification across the interagency, with the energy and the focus that we could attain.’

Russian influence spans Europe, Scaparrotti said, but the area that concerned him the most is the Balkans.

He said: ‘Russia’s at work in the Balkans, and I think that we’ve kind of taken our eye off the area.

‘It’s an area where, in terms of diplomacy, we have to put some focus, in my opinion. And we have to continue our security reform and our capability building that we and the international community’s engaged in the Balkans.’ (Source: Shephard)

06 Mar 18. MilCloud 2.0 gets IL5 authorization. Nine months after the Department of Defense awarded a potential eight-year, $498m contract to CSRA for the next iteration of milCloud, the Defense Information Systems Agency granted CSRA a DOD Provisional Authorization Impact Level 5 for milCloud 2.0. IL 5 authorization allows government users to hold unclassified national security systems, high-sensitivity systems containing controlled, unclassified, information as well as mission-critical Information in the cloud. DISA rolled out the first version of milCloud in 2014 as a government-operated private cloud with both classified and unclassified versions.

Operated by CSRA, MilCloud 2.0 includes a self-service cloud portal for real-time provisioning and management in addition to scalable deployment environments based on application requirements. Customers can also select from a joint pool of resources in an on-demand basis and tailor their virtual environments to meet mission needs.

“For the next 60 days we will be working with our early adopters to fine-tune our business processes,” Caroline Bean, DISA milCloud 2.0 program manager said in a statement. “The next step will be to open the doors for business to everyone else who is waiting to onboard. Our target is early May.”

CSRA is launching milCloud’s provisioning portal, which gives customers continuous monitoring of their usage and a cost estimator tool to help them estimate cloud computing costs in real time.

On March 6, DISA also announced Oracle has received DOD Provisional Authorization IL5 for its federal cloud managed service offering. The Oracle platform is a hybrid platform-as-a-service model that allows for shared service zones in a community cloud and individual zones for federal customers. (Source: Defense Systems)

05 Mar 18. How NGA plans to reinvent its acquisition efforts.

Change is coming to the National Geospatial-Intelligence Agency’s acquisition strategy.

“I’m not going to give too much of it away, but I am looking forward to sharing with you a new approach that I’m taking to acquisition.… We’re overhauling it,” the agency’s Deputy Director Justin Poole announced Feb. 28, during a U.S. Geospatial Intelligence Foundation event previewing its upcoming 2018 GEOINT conference.

Poole, who also serves as the agency’s component acquisition executive, said he will lead a panel detailing the NGA’s acquisition restructure at GEOINT in Tampa, Fla., in April.

No timeline was given, but Poole said NGA’s component acquisition executive team will work with the chief procurement executive and the CIO and drive changes in the intelligence agency’s consolidated IT and services shop, which launched in 2015.

Poole told FCW the overhaul was more of “an alignment activity” because “we have a hard time explaining what the mission outcomes are.”

“I want our acquisition program to make more sense from a mission perspective. So it has a lot more to do with aligning the way IT programs are managed for support-specific mission areas,” Poole told FCW. “What I want to do is make sure we understand what that looks like and then ensure we have contracts properly aligned to those mission programs.”

Poole said the realignment would include leaning on small businesses and using other transaction authorities, which allow the Department of Defense to carry out rapid prototyping and pilot programs, and increasingly relatively large acquisitions.

“That’s why we created Office of Ventures and Innovation … to look at how we can use, within the bounds of regulations, innovative ways of working with industry,” Poole said. That office launched in 2017.

Poole’s efforts follow those of former Deputy Director Susan Gordon, who teed up acquisition changes in 2015, issuing guidance for speedy cycles and penning an open letter advocating for more agile procurement practices. Gordon moved on to the post of principal deputy at the Office of the Director of National Intelligence in August of last year.

(Source: Defense Systems)

07 Mar 18. Lockheed Martin unveils cyber war-fighting platform. Lockheed Martin this week unveiled its offering for a program that has been commonly thought of as Cyber Command’s top acquisition priority this year.

The unified platform has been described as a “cyber carrier,” which cyber warriors can use to coordinate plans, house tools and launch attacks.

Lockheed Martin’s prototype for the program is a joint integrated mission system, named Henosis, which is Greek for unity.

“What we see as the overall concept is to get away from the one-off solutions that cyber tends to be now where you have a certain tool that’s loaded onto a laptop or maybe uses Linux or uses Windows and you have all of these different systems and capabilities that the operators have to be trained in how to use,” David Hathaway, business development lead for Lockheed Martin’s Cyber Solutions Division, told Fifth Domain in an interview.

The idea, Hathaway said, was to move to a common interface for the user with all the tools interfacing with this common framework. This common user experience creates a more coherent interface for both defensive and offensive operations. This includes all the accesses, reach back to the intelligence and the analysis, which is all shared in a cloud environment.

Hathaway equated the system to an airplane that can effectively employ a variety of payloads, sensors and missiles, which are all in a seamless interface to the operator. Unified platform, he analogized, would most resemble a platform like the Air Force’s Rivet Joint, with all these different operator stations all interfacing into a single unified platform that provides that single point to bring it all together.

The Air Force, serving as the executive agent for Cyber Command, is managing the contract.

Hathaway also said Henosis aims to reduce the burden on individual cyber war-fighters and units. “There is such a heavy workload on training that the idea is to simplify that user experience to make it so that you don’t have to be a high-end computer programmer to execute cyber operations,” he said.

This will become increasingly important as cyber operations become more ingrained in traditional military operations that could be executed by enlisted personnel right out of boot camp, similar to enlisted personnel that are trained to fire rockets or munitions. This is in contrast to the highly skilled operators in the cyber intelligence world that must carefully craft tools to infiltrate foreign networks for the purposes of espionage.

One of the difficulties in building a joint, integrated C2 platform for the totality of Cyber Command’s cyber mission force is it must support the totality of missions spanning from offense to support to defense.

“While the offense and the defense are related, they are different missions. Obviously, one is pulling data off your [DoD Information Network] DoDIN sensors that you have control over. The other is trying to get into someone else’s network so you have access mechanisms you have to interface with,” Hathaway said. “We have to find ways to interface and create mechanisms to communicate with these various sensors or apertures whatever it happens to be, but yet create that seamless user interface.”

Lockheed Martin has discussed this difficult problem with leaders in the Office of the Secretary of Defense, the Joint Staff, Cyber Command, all the service cyber components to make sure they understand what their mission needs are and what their current capabilities are how to leverage those current capabilities in this unified system.

Military leaders have also discussed something called the military cyber operations platform, or MCOP, which has been the No. 1 goal of Cyber Command’s Capabilities Development Group. MCOP has been described as “essentially the sum total of the portfolios we manage,” by officials. However it has been unclear how this larger effort interfaces with other work like unified platform, which will be one component of MCOP.

Hathaway said MCOP is really an environment that will include the unified platform, serving as the war-fighting platform, and other sensors such as the Big Data Platform, developed by DISA and Army Cyber Command to support data ingest, correlation, and visualization infrastructure.

“Henosis does not include the DoDIN sensors, but they are certainly part of that environment,” he said. “They don’t include, let’s say, RF-enabled capability, some type of aperture that we want to drop a cyber payload off of, the unified platform doesn’t include that system but we have to be able to interface with it.” (Source: C4ISR & Networks)

07 Mar 18. How To Recruit Young Cyber Warriors When There Aren’t Enough. One topic dominates just about every conversation here at the AFCEA cyber symposium: where to find promising cyber warriors and how to hire them and keep them.

Deloitte, which is building a substantial cyber warfare portfolio, put on a Capture the Flag game where five teams of college hackers had to find code clues and evade traps. The real prize: recognition at one of the military’s biggest cyber conferences and exposure to hundreds of cyber companies.

The seven-hour long competition posed challenges across cryptography, reverse engineering, forensics, and networking. There were four-person teams from Brigham Young University (they had two), Pikes Peak Community College, the United States Air Force Academy and the University of Colorado at Colorado Springs. For those who might think the Air Force Academy students would be a shoo-in given the resources and training available to them, bear in mind that the University of Colorado won last year at the first competition. The Air Force cadets did, however, win today’s competition.

They played using something called the Hackazon portal, created by Deloitte’s Netherlands firm. It is being used as a training and development tool for the company’s clients, as well as as being used for similar hackathons.

How deep is the hunger for talented hackers? Ryan Roberts, a senior manager for Deloitte, said he was passionate about the Hackathon “because we really do have a shortage of the sort of people that can help defend the nation.” He confirmed the hackathon does help the company find “likely hires.”

Even the National Security Agency’s own Tim Kosiba confessed during an afternoon panel that if he had one wish he’d be granted, it would be for “more folks that want to do the mission and do it for the safety of the nation.” (Source: Breaking Defense.com)

07 Mar 18. AirShare’s Missile Countermeasure Against UAS. At UMEX 2018, the International Unmanned Systems exhibition in Abu Dhabi, AirShare presented its Overwatch Interceptor-UX, a new solution to counter UAV using a surface-to-air missile able to create high-persistence countermeasure cloud. AirShare is Canadian-based Company with offices in Canada and the United States established to protect critical infrastructure and people from wayward and malicious UAVs (“drones”).

AirShare’s Overwatch Interceptor-UX is based on five patent-pending technologies which enable detection, tracking, and kinetic mitigation of small UAVs using a high-persistence countermeasure cloud. The proprietary countermeasure cloud improves the ability to defeat incoming small UAV threats under all conditions by disabling their propulsion system. AirShare provides an end-to-end system to safely and effectively stop small drones from encroaching on protected airspace and personnel.

The Overwatch Interceptor-UX includes four main components, the Interceptor-UX missile that create the countermeasure cloud, uFDR detectors used to detect the UAV threats, the remote monitoring terminal which is used to identify the drone threat and the base station used to launch the missile.

The Overwatch system is safe to operate in urban environments, enables greater range, has no collateral damage, is effective against evasive manoeuvres and swarms, provides simplified logistics, and is lower cost than conventional kinetic or electronic warfare approaches.

The AirShare’s Overwatch system detects, tracks and mitigates an incoming threat within seconds using a rapid kinetic response. The world’s lightest guided missile, weighing ~700 grams and constructed from lightweight materials, does not cause collateral damage even if misused. The system stops wayward or malicious drones up to 2 kilometers away and brings them decisively to the ground by deploying a cloud of environmentally friendly elastic countermeasures which become ensnared in the drone’s propellers. For urban and airport applications, a custom parachute ensures the captured drone descends safely.

The Overwatch Interceptor-UX missile can be mounted on vehicle or vessel but it can be also used by individual soldier. It can offer a protection sphere from 1,000 to 4,000 m. The system can be integrated into existing Battlefield Management Systems or used in standalone.

The technology has been selected by the Government of Canada and is now being offered to select military, law enforcement, and public safety clients. The company leverages domain expertise in detection, tracking and mitigation to provide a lightweight, autonomous system which requires little to no operator intervention. (Source: UAS VISION)

07 Mar 18. LM Unveils Unified Platform Henosis Prototype for US Cyber Mission Force. The Cyber Solutions division of Lockheed Martin (NYSE: LMT) announced its plans to compete for the U.S. Air Force’s Unified Platform contract by unveiling details about the Henosis™ prototype, a joint integrated mission system, at the company’s annual Media Day.

Like the cyber equivalent to an aircraft carrier, the Henosis prototype could incorporate and integrate cyber effects into multi-domain air, land, maritime and space operations. Comprising a system of systems, it functions as a command and control battle management visualization tool that coordinates defensive cyber operations, offensive cyber operations, and cyber intelligence, surveillance and reconnaissance. It allows an operator from any specialty to gain access, develop their operational mission requirements and build a customizable application package to ultimately execute their specific mission.

“We completed an in-depth engineering analysis with our prototype and over the next year, we’ll combine our framework with the mission modules to demonstrate a capability to execute both defensive and offensive cyber missions,” said Deon Viergutz, vice president of Cyber Solutions within the Rotary and Mission Systems business area. “Lockheed Martin’s multi-domain weapons system experience will translate into what we believe will be the most operationally effective Unified Platform solution.”

Lockheed Martin’s Cyber Solutions team has more than 30 years of experience developing capabilities that support the offensive and defensive efforts of the defense and intelligence community. In addition to developing Henosis, they are leveraging cross domain technologies developed for various services in an open system architecture to pioneer converged cyber and electronic warfare capabilities.

“With the right weapon system in place via the Unified Platform, the Cyber Mission Force can rapidly and effectively exploit the convergence of cyber and electronic warfare – such as radio frequency, infrared and radar – to truly change the 21st century battlefield,” said Viergutz.

He concluded by highlighting Lockheed Martin’s experience in running successful cyber events and operating and maintaining a joint cyber test, evaluation and training range.

“To be best prepared for these kinds of battles, we’re seeing increased emphasis to train current and future multi-service cyber forces to become savvy cyber warriors,” he added.

Since 2011, Lockheed Martin has executed more than 200 complex cyber events at the Department of Defense Test Resources Management Center’s National Cyber Range. The company plans to use this experience in its bid for the Army’s Persistent Cyber Training Environment program, which will provide a persistent and realistic training environment to Cyber Mission Forces. (Source: ASD Network)

05 Mar 18. Danish defense minister: Deterring Russia on the cyber battlefield. The fact that Russia’s aggressive cyberattacks are primarily meant to undermine the cohesion of Western societies and our partners — and above anything else create division and a rift within both NATO and the European Union — clearly stands out as a concern from this year’s Munich Security Conference. The Russians are masters of distorting reality.

One of the more bizarre episodes occurred when U.S. national security adviser H.R. McMaster was asked by a Russian expert if it was time to restart dialogue on cyber with reference to the high number of cyberattacks targeting Russia that allegedly originated in the United States, saying that only a few cyberattacks targeting the U.S. originated in Russia.

McMaster expressed surprise that Russian cyber experts were even available at the conference based on how active most of them were in undermining Western democracies.

Indeed, a funny remark among a serious forum. McMaster added that dialogue with Russia would come when the country expressed sincerity about the topic. Until then, McMaster continued, the U.S. would continue to expose the Russian cyberattacks, which support forces whose sole purpose is to create division and strife.

I dwell on this exchange because it underlines how seriously the U.S. administration is taking the Russian threat and attempts to undermine our democracies through influence campaigns in cyberspace.

My approach is the same: to say it out loud and expose them every time Russia and other states or actors carry out harmful and damaging cyberattacks or disperse fake news stories. Just recently the British government, based on a thorough assessment, attributed the so-called NotPetya cyberattack — which badly hit Ukraine and spread to a host of companies across the world — to the Russian government, and more specifically to the Russian military. Danish information clearly points in the same direction. (Source: Fifth Domain)

05 Mar 18. DoD backs off cloud contract with Amazon partner worth nearly $1bn. The Department of Defense announced Monday that it is substantially modifying the terms of a nearly $1bn agreement it made with an Amazon partner company to transition agency data to the cloud.

The original agreement, signed in February, tasked Rean Cloud, LLC with enabling multiple agencies within the Defense Department to procure cloud solutions in a new streamlined process, but was immediately criticized by some in industry who feared the Pentagon was playing favorites.

In a protest to the Government Accountability Office, Oracle claimed that Rean “serves as a front for Amazon Web Services” and that the entire procurement process was “shrouded in secrecy.” Rean is an Amazon Web Services partner and reseller.

Defense Department spokesman Col. Robert Manning announced March 5 that the contract’s new ceiling will be $65,000,000, a significant reduction from the original five-year $950,000,000 and that the scope of the work will be limited.

“After reviewing the production agreement recently awarded to Rean Cloud LLC, the Department has determined that the agreement should be more narrowly tailored to the original scope of the prototype agreement, which was limited to United States Transportation Command applications,” Manning said.

Moving the Department more fully into the cloud has been a top priority for the Pentagon’s senior leaders, including Patrick Shanahan, the deputy secretary of defense. (Source: C4ISR & Networks)

02 Mar 18. USMC, CyberCom show interest in quantum and blockchain. Quantum computing and blockchain technology face similar obstacles when it comes to gaining acceptance in the federal government. Most leaders know they have potential, but practical experience is limited.

Quantum computers are not yet advanced enough to crack encryption, but Department of Defense agencies can’t wait until an attack occurs.

“Before I start putting something out a network, we need to see what an adversary could attack,” Ray Letteer, chief of the Marine Corps’ cybersecurity division, said at the Feb. 27 AFCEA Cybersecurity Technology Summit. Although quantum computing will provide vastly more processing power, “we recognize that [it can also] be used against us, and we need to start doing something ourselves to be proactive,” he said.

At the U.S. Cyber Command, Director of Intelligence Casey Carey said he sees quantum computing as a way to “reduce anonymity” and bring “attribution” to who is operating on their networks.

“At the same time, quantum computing does concern me,” Carey said. “When I think about the encryption on our classified networks … if someone is able to break that encryption, then we have real problems.”

When it comes to upgrading systems, Letteer said embedded cryptography presents challenges.

“We need to make the system more Lego-like so when you have a new version, updates can be done quickly and seamlessly [as] adjustments and still be able to move,” Letteer said. “Otherwise, we are going to be struggling for years.”

For blockchain, DOD is conducting a study on the technology’s potential uses in both offensive and defensive cyber applications.

The report will assess efforts by foreign powers, extremist organizations and criminal networks using distributed database technologies. It will also address blockchain use by federal agencies and possible vulnerabilities to critical infrastructure networks due to cyberattacks. The report is due in June.

Letteer said he sees blockchain helping keep government information secure in the cloud.

“If I have a capability through blockchain to keep the cloud protections, I’ve addressed the issue of getting into the cloud quicker and still protecting my information,” Letteer told GCN. “It enables the tagging, labelling and standardization of my environment … so if there are any changes, people will know about it.”

For now, the Marine Corps is still exploring what value blockchain can provide. Carey said blockchain could help Cyber Command with intelligence capabilities.

“From an intelligence perspective, if any adversary finds something on our network before us, they have killed us,” Carey said. “We need to do risk assessments before moving forward with blockchain.” (Source: Defense Systems)

03 Mar 18. US Army plans to award major EW-drone contract this year. As part of an Army plan to rebuild its electronic warfare capabilities, the service plans to award a major contract later this year that would bolster EW capabilities.

The contract is to support part of the Army’s Multi-Function Electronic Warfare program, which overall will provide brigade combat team commanders organic offensive electronic attack and support capabilities, which don’t currently exist.

Specifically, the contract award will be for MFEW Air Large, which will outfit electronic warfare pods used to jam and detect signals onto large unmanned aerial systems. This could include the Army’s MQ-1C Gray Eagle.

Ann Minniti, the program lead for MFEW Air at Army Program Executive Office-Intelligence, Electronic Warfare & Sensors, told C4ISRNET that an Army Requirements Oversight Council Memorandum in early January 2018 codified the capabilities for part of the program.

The Army, according to fiscal 2019 budget request, plans to spend $39.8m on MFEW Air next year with a total spend of $195.8m for the whole MFEW program across the next five years.

Similarly, the service had planned to spend $20.3m last year as outlined by its FY18 budget documents released in May 2017.

The Multi-Function Electronic Warfare (MFEW) program requires different electronic warfare solutions for platforms of different sizes. The timeline for the project is as follows;

MFEW Air Large, outfitted for large drones, is expected to be fielded in fiscal 2022.
MFEW Air Rotary, for Recon/Lite Attack helicopters, is expected to be fielded in fiscal 26.
MFEW Air small, outfitted for drones weighting around 1,000 pounds, is expected to be fielded in fiscal 2031.
MFEW Ground large, outfitted for large ground vehicles, expected to be fielded for fiscal 2025.
MFEW Ground small, outfitted for small ground vehicles, expected to be fielded in fiscal 2027.
MFEW Ground dismounted is expected to be fielded in fiscal 2027.

Minniti said her office will pursue a rapid development effort with current funding to be used for the development and testing of MFEW Air Large systems. (Source: C4ISR & Networks)

02 Mar 18. Production begins on joint Saab/PGZ SIGINT ship for Sweden. The first steel has been cut on a signals intelligence (SIGINT) ship for the Swedish Navy, Saab announced on 1 March. The vessel, which is being constructed at Poland’s Nauta Shipyard, is the product of a joint memorandum of understanding (MOU) between the Swedish company and Poland’s Polska Grupa Zbrojeniowa (PGZ), which was signed in October 2016. The start of construction follows what Saab describes as “intense co-operation” between itself and the Nauta Shipyard.

Vice-president of Nauta Shipyard’s board, Adam Potrykus, said: “We were originally chosen by Saab as a trusted partner in shipbuilding after a long selection process. Similar to our Swedish partner we are happy to have performed the first steel cutting for the ship. (Source: IHS Jane’s)

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