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CONTRACT NEWS IN BRIEF

January 5, 2024 by

UNITED KINGDOM AND NATO

 

LAND

 

03 Jan 24. NSPA Awards COMLOG a Contract for Patriot Missiles. The NATO Support and Procurement Agency (NSPA) has awarded COMLOG, a joint venture between Raytheon, an RTX business (NYSE: RTX), and MBDA, their first contract under the European Sky Shield Initiative, or ESSI. With a total value of up to $5.6bn, the NSPA contract supports a coalition of nations, including Germany, the Netherlands, Romania and Spain, with a combined quantity of up to 1,000 Patriot® GEM-T missiles, if all options are exercised. The contract includes qualification of updated components, addition of new suppliers, test equipment, and spares to support future sustainment. To support delivery, COMLOG will expand the production capacity of GEM-T missiles in Europe. Through this contract, Patriot user nations will realize significant benefits. The bundled procurement, in the spirit of the ESSI, offers economies of scale and supports the expansion of production capacity for new Patriot GEM-T missiles to meet increasing demand. The new production capacity for Patriot GEM-T missiles in Europe enhances security of supply and will contribute to the replenishment of Patriot air defense missile inventories. Finally, the initiative strengthens cooperation among NATO allies in alignment with the ESSI. (Source: ASD Network)

 

EUROPE

 

LAND

 

04 Jan 24. Finland to Upgrade MLRS Fleet to Latest M270A2 Version. Defense Minister Antti Häkkänen has approved the acquisition of a life cycle upgrade for the heavy rocket launcher system in use by the Defense Forces. Heavy rocket launchers have been acquired for the defense forces in 2006-2014 from the Netherlands, the United States and Denmark. With the lifecycle update, the 41 rocket launchers in Finland’s possession will be updated to the M270A2 version. The update improves the rocket launcher’s chassis, weapon section and firing control. In the same context, the rocket launchers are overhauled so that they are practically as good as new after the upgrade. The update also enables the use of future ammunition and the compatibility of payloads. The tender request for the acquisition was being processed by the US Congress, which granted a sales license to Finland in August 2023. The update is carried out by the US company Lockheed Martin. The total price of the upgrade of the rocket launchers excluding VAT is around 450m euros. (Source: https://www.defense-aerospace.com/ Finnish Ministry of Defence)

 

04 Jan 24. Finland to purchase more Patria 6×6 armoured vehicles. The Finnish Defence Forces purchases more Patria 6×6 armoured vehicles by redeeming the additional purchase option related to the agreement signed in June 2023 when Patria signed an agreement for 91 vehicles with the Finnish Defence Forces Logistic Command. The agreement also included a purchase option up to 70 vehicles of which the Finnish Defence Forces now redeems 40 vehicles. Vehicle deliveries are currently underway. The first tens of vehicles have already been handed over to Pori brigade where the vehicle operation training for conscripts will start in the beginning of 2024. Patria 6×6 offers unprecedented mobility and user comfort in its class. The controls are very clear and simple to use and independent suspension increases user comfort. The steering of the Patria 6×6 is similar to any automatic car, making the use easy to learn.

 

03 Jan 24. Poland Orders 155mm Ammunition Worth $2.75bn. On December 22, the PGZ-Amunicja Consortium and the Armament Agency concluded an executive agreement for the supply of nearly 300,000 pieces of 155 mm artillery ammunition implemented under the National Ammunition Reserve program. This is a historic contract both in terms of the size of the order and its value of nearly PLN 11bn (approx. $2.75bn–Ed). Ammunition deliveries will take place in 2024-2029. The signed document is a consequence of the framework agreement concluded on June 1, regarding the deliveries of up to one m pieces of ammunition of various types and calibers for the needs of the Polish Army by 2029. The conclusion of the framework agreement was the beginning of the change in the method of contracting ammunition supplies by the Armament Agency, which allowed the companies belonging to the PGZ-Amunicja Consortium to plan the long-term production cycle and plans to further increase production capacity. Thanks to this, the PGZ ammunition domain – the only entity with such diversified competences on the Polish market – will supply the army with ammunition in annual quantities exceeding the volume of all orders received from the army in the last ten years. The PGZ-Amunicja consortium consists of five companies belonging to the ammunition domain of the PGZ Group: Mesko S.A., Zakłady Metalowe Dezamet S.A., Zakłady Chemiczne Nitro-Chem S.A., Gamrat sp. z o.o. and Bydgoskie Zakłady Elektromechanne Belma S.A. (Source: https://www.defense-aerospace.com/PGZ)

 

03 Jan 24. Finnish Defence Forces expands fleet of Sisu 4x4s. Earlier deals with Oy Sisu Auto Ab in 2020 and 2022 saw the procurement of dozens of 4x4s as part of a domestic equipment acquisition drive. The Finnish Defence Forces have ordered 13 Sisu GTP 4×4 off-road vehicles from Oy Sisu Auto Ab, with the overall value of the procurement around €9.7m ($10.6m), according to Finland’s Ministry of Defence (MoD). (Source: army-technology.com)

 

03 Jan 24. Thales Ground Master 200 Multi-Mission Compact radar to strengthen Lithuania’s counter battery operations. Building on the strong international NATO cooperation as well as strategic bilateral defence ties, the Lithuanian Defence Material Agency signed an agreement with Dutch procurement Agency COMMIT for the acquisition of Thales Ground Master 200 Multi-Mission Compact radars (GM200 MM/C). Designed to address modern warfare’s challenges, the GM200 MM/C, provides simultaneous accurate detection, tracking and classification against all current and future threats, including drones. It offers radar operators with more time-on-target to gather as much information on incoming threats as possible thanks to new-generation 4D AESA technology*. The system automatically detects tracks, classifies aircraft, missiles, helicopters, multiple Unmanned Aerial Vehicles (UAVs) and Rockets, Artillery and Mortar (RAM), and is particularly suited to weapon location and air defence.

 

SEA

 

03 Jan 24.  Portugal orders six modified Viana do Castelo-class OPVs. An ambitious effort by the Portuguese Navy to deploy six new Viana do Castelo-class offshore patrol vessels (OPVs) reached a milestone on 29 December 2023 with the award of a EUR299.7m (USD329.2m) contract to the local privately owned shipbuilder West Sea – Estaleiros Navais. Under the contract, awarded by the Directorate-General of National Defence Resources of the Portugese Ministry of National Defence, the new OPVs are planned to be delivered between 2027 and 2030. They will complement the Portuguese Navy’s four existing Viana do Castelo-class OPVs that entered service between 2011 and 2018. (Source: Janes)

 

AIR

 

04 Jan 24. Germany Awards Framework Contract for 1,200 IRIS-T Air-to-Air Missiles. On December 20, Annette Lehnigk-Emden, President of the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) and Helmut Rauch, CEO Diehl Defence, signed a framework contract for the procurement of more than 1,200 IRIS-T guided missiles for Germany. The contract was realized in the shortest possible time by the IRIS-T Project Management Office (PMO), which is located within the BAAINBw, in order to meet the additional demand of the long-time IRIS-T consortium leader Germany. Meanwhile, the air forces of 12 nations rely on the outstanding capabilities of IRIS-T. Since its introduction in 2005, more than 5,000 guided missiles have been delivered. IRIS-T is among the standard armament of the Eurofigther/Typhoon and is integrated into the platforms F-16, Gripen, Tornado, EF-18, KF-21,F-5E, FA50 and IAR-99. Not only enemy fighter aircraft can be engaged, but also attacking air-to-air and surface-toair missiles. The pilot is even able to successfully counter attacks from the rear without having to change the aircraft’s course. The basis missile is incrementally further developed and will continue to set benchmarks with new capabilities in its original air-to-air role. Thus, the future viability of IRIS-T is ensured by the 6 nations development consortium. (Source: https://www.defense-aerospace.com/Diehl Defence)

 

29 Dec 23. Raytheon, Tucson, Arizona, has been awarded a $344,619,301 modification (P00004) to previously awarded contract FA8681-23-C-B001 for StormBreaker® (SDBII, GBU-53/B) Production Lot 10, for additional all up rounds, containers and trainers. Work will be performed in Tucson, Arizona, and is expected to be completed by Aug. 30, 2028. This contract involves Foreign Military Sales (FMS) to Norway, Germany, Italy and Finland. Fiscal 2023 Air Force procurement missile funding in the amount of $101,394,424; fiscal 2024 Air Force procurement missile funding in the amount of $183,097,105; fiscal 2024 Navy procurement weapons funding in the amount of $58,009,800; and FMS funding in the amount of $2,117,972 are being obligated at the time of award. The Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity.

 

USA

 

LAND

 

04 Jan 24. BAE Systems has signed an agreement with the U.S Army for M777 lightweight howitzer major structures, under an Undefinitized Contract Action (UCA), which is currently limited to $50m. This allows BAE Systems to start delivering on the program, while finalizing the details of the contract and its total value with the customer. BAE Systems will work with its supply chain in the UK and the US to produce the major M777 titanium structures, which form the basis of the gun. The first major structures are due to be delivered in 2025. BAE Systems has seen an increase in interest from across Europe, Asia, and the Americas in the M777 gun system. This new contract creates the optimum conditions for a restart of M777 production in the UK, and presents an opportunity to new and existing users to join a new M777 production initiative and take advantage of the benefits from a hot production line and economies of scale. The U.S., as well as Canada and Australia, has donated M777s to Ukraine.

 

03 Jan 24. L3Harris Technologies Inc., Rochester, New York, was awarded a single award, indefinite-delivery/indefinite-quantity, firm-fixed-price contract (H92401-24-D-0001), with seven one-year ordering periods, and a potential maximum value of $479,000,000 for the continued procurement of next generation tactical communications radios and associated sustainment and support services as required in support of U.S. Special Operations Command (USSOCOM). Fiscal 2024 procurement funds in the amount of $2,515,260 are being obligated at time of award. This contract shall result in delivery orders funded with valid procurement, operations, and maintenance funding, and research, development, testing, and evaluation funding as appropriate. This contract was awarded under the Competition in Contracting Act exception to full and open competition as implemented by Federal Acquisition Regulation 6.302-1. USSOCOM, MacDill Air Force Base, Florida, is the contracting activity.

 

SEA

 

04 Jan 24.  Huntington Ingalls Industries, Newport News Shipbuilding, Newport News, Virginia, was awarded a $283,939,994 cost-plus-fixed-fee modification to a previously awarded contract (N00024-15-C-4301) for completion of the USS Columbus (SSN 762) engineered overhaul. This contract includes options which, if exercised, would bring the cumulative value of this contract modification to $300,020,836. Work will be performed in Newport News, Virginia, and is expected to be completed by December 2025. Fiscal 2024 operations and maintenance (Navy) funds in the amount of $168,929,679 will be obligated at the time of award and will expire at the end of the current fiscal year. Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Awarded Dec. 21, 2023)

 

AIR

 

03 Jan 24. Bombardier wins US Army contract for new spy plane prototype. The U.S. Army awarded a contract to Bombardier Defense to provide at least one Global 6500 aircraft to serve as a prototype airframe for a new spy plane program, the service announced Wednesday. The firm-fixed-price contract, awarded Dec. 12, includes an option to purchase two additional aircraft over a three-year period. The first aircraft’s delivery date is set for Oct. 1, the statement noted. (Source: Defense News Early Bird/Defense News)

 

04 Jan 24. Lockheed Martin Corp., Fort Worth, Texas, was awarded a $1,153,427,771 cost-plus-incentive-fee, fixed-price-incentive-fee modification (P00007) against a previously awarded indefinite-delivery/indefinite-quantity contract (N0001923D0010). This modification exercises options and increases the ceiling to provide site activation and hardware requirements, to include site activation events and training devices, as well as contract management, planning and readiness reviews and associated non-recurring introduction to service activities. Additionally, this effort provides production readiness requirements and production engineering for training device production lines in support of F-35A, F-35B and F-35C aircraft initial sustainment activities for the Air Force, Marine Corps, Navy, non-Department of Defense participants, and Foreign Military Sales customers. Work will be performed in Orlando, Florida (82.5%); Fort Worth, Texas (14.3%); and Owego, New York (3.2%), and is expected to be completed in December 2028. No funds will be obligated at the time of award; funds will be obligated on individual orders as they are issued. Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. (Awarded Dec. 28, 2023)

 

04 Jan 24. Maxar Intelligence, a provider of secure, precise, geospatial intelligence, today received a contract to provide the National Geospatial-Intelligence Agency (NGA) with a Precision3DTM Data Suite bundle covering 160,000 square kilometers within the U.S. Indo-Pacific Command area of responsibility. The commercial 3D data provided by Maxar will support the work of NGA’s Office of Geomatics, which maintains accurate 3D GEOINT products in support of a diverse group of military and civilian customers. Under the contract, Maxar will provide the following products to NGA:

  • Precision3D Surface Model

o Maxar’s most accurate representation of Earth, it is a 3D Triangulated Irregular Network (TIN) model with textures on all sides that is available in Open Geospatial Standard (OGC) formats including Cesium 3D Tiles and Esri i3S.

  • Precision3D Digital Surface Model (DSM)

o An accurate global digital surface model derived from the Precision3D Surface Model – 50-centimeter resolution elevation data representing every single point on Earth.

  • Precision3D predicted accuracy data

o The newest addition to our Precision3D product line, this metadata layer allows exploitation tools to predict horizontal and vertical accuracies at each location in the Precision3D Digital Surface Model. Predicted accuracy data is provided in standard Generic Point-Cloud Model version 1.1 (GPM 1.1) format.

  • Precision3D True Ortho

o Precision3D True Ortho geodata is accurate, high-resolution orthoimagery—without parallax or occlusion.

(Source: BUSINESS WIRE)

 

04 Jan 24. The U.S. Navy selected RTX and L3Harris Technologies to help overhaul the electronic warfare packages aboard its F/A-18 Super Hornet fleet. Both companies were awarded $80m prototyping contracts for the Advanced Electronic Warfare effort, or ADVEW, last year, following an initial competition. A final decision for production is expected in 2026. (Source: Defense News)

 

04 Jan 24. Science Applications International Corp. (NYSE: SAIC) has been awarded a $63m contract from the U.S. Navy to support hypersonics advanced concepts and strategic mission solutions for the Navy’s Strategic Systems Programs (SSP) and the Naval Surface Warfare Center (NSWC) Crane, Ind., Strategic Systems Hardware Division (GXW). Under the new contract, SAIC will enhance hypersonics advanced concepts and strategic missions focused on next-generation systems, subsystems, components, features and technologies to include Hardware-in-the-Loop (HWIL) and Software-in-the-Loop (SWIL) simulations, manufacturing techniques and other strategic mission areas. (Source: BUSINESS WIRE)

 

28 Dec 23. USAF Awards Viasat Up To $900m Multi-Vendor Technology Integration and Architecture Contract. Viasat, Inc. (NASDAQ: VSAT), a global leader in satellite communications, today announced it will work with the U.S. Air Force’s Life Cycle Management Center (USAF LCMC) to transition and integrate new innovative technologies and capabilities as part of a $900m ceiling, Indefinite Delivery/Indefinite Quantity (IDIQ) contract. Under the multi-award contract – known by its initialism LCMC XA IDIQ – Viasat is expected to prototype and test systems, hardware, software, and cybersecurity solutions to provide integrated, multi-domain capabilities for the USAF. Viasat experts will accelerate and expand technology integration across the Air Force. The contract has an approximate five-year term, with options for up to an additional five years. (Source: ASD Network)

 

TECHNOLOGY

 

03 Jan 24. Applied Research Solutions, Beavercreek, Ohio, was awarded a $48,750,000 cost-plus-fixed-fee contract for research and development. This contract provides for the development of multi-domain, multi-platform, and multi-scale technologies and strategies to effectively apply closed-loop sensing, data processing, and reasoning capabilities to support sensing mission autonomy across the range of military operations. Work will be performed at Beavercreek, Ohio, with base support at Wright-Patterson Air Force Base, Ohio, and is expected to be completed by April 2, 2029. This contract was a competitive acquisition and five offers received. Fiscal 2020 research, development, test, and evaluation funds in the amount of $415,000 are being obligated at time of award. The Air Force Research Laboratory, Wright-Patterson AFB, Ohio, is the contracting activity (FA2377-24-C-B014). (Awarded Jan. 2, 2024)

 

27 Dec 23. Firehawk Aerospace, a market leader in hybrid rocket engine and solid rocket motor (SRM) propulsion, has secured a Small Business Innovation Research (SBIR) Phase III contract from Army Applications Laboratory (AAL). This contract underscores Firehawk’s advancements in rocket propulsion and its unique capability to address critical challenges in conventional SRM supply chains. Distinguishing itself from traditional systems, Firehawk’s hybrid rocket engines boast a rapid manufacturing timeline of weeks, not years. Manufactured and tested in Texas, this approach enables faster testing and innovation at a reduced cost, in line with Firehawk’s commitment to national security. By sidestepping traditional materials, Firehawk mitigates supply chain vulnerabilities, creating a resilient system ready for evolving threats. The U.S. Army, recognizing the need for propulsion systems unaffected by supply chain issues, supports Firehawk Aerospace. The development focus includes creating analogs for key U.S. Army systems like the Guided Multiple Launch Rocket (GMLR), FGM-148 Javelin, and FIM-92 Stinger. (Source: PR Newswire)

 

REST OF THE WORLD

 

LAND

 

30 Dec 23. The Secretary of State has approved a possible Foreign Military Sale to the Government of Israel of M107 155mm projectiles and related equipment for an estimated cost of $147.5m. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today. The Government of Israel has requested 155mm ancillaries (fuses, primers, and charges) that will be added to previously implemented cases. This amendment will increase the total case value above notification thresholds and thus requires notification of the entire case. The original FMS cases, valued at $96.51m, included four thousand seven hundred ninety-two (4,792) rounds of M107 155mm artillery ammunition (MDE); fifty-two thousand two hundred twenty-nine (52,229) rounds of M795 155mm artillery ammunition (non-MDE); and thirty thousand (30,000) M4 propelling charges (non-MDE), along with publications; associated technical documentation; and logistics support services, which have subsequently been delivered. The new estimated total cost is $147.5m. The Secretary of State has determined and provided detailed justification to Congress that an emergency exists that requires the immediate sale to the Government of Israel of the above defence articles and services in the national security interests of the United States, thereby waiving the Congressional review requirements under Section 36(b) of the Arms Export Control Act, as amended. The United States is committed to the security of Israel, and it is vital to US national interests to assist Israel to develop and maintain a strong and ready self defence capability. This proposed sale is consistent with those objectives. Israel will use the enhanced capability as a deterrent to regional threats and to strengthen its homeland defence. Israel will have no difficulty absorbing this equipment into its armed forces. The proposed sale of this equipment and support will not alter the basic military balance in the region. It is incumbent on all countries to employ munitions consistent with international humanitarian law. The 155mm artillery ammunition will be provided from US Army stock. There are no offset agreements proposed in connection with this potential sale. Implementation of this proposed sale will not require the assignment of any additional US Government or contractor representatives to Israel. There will be no adverse impact on US defence readiness as a result of this proposed sale. (Source: www.joint-forcescom)

 

03 Jan 24. Cuashub.com said today that Hanwha Systems Secures South Korea C-UAS Deal. According to information from The Korea Economic Daily, Hanwha Systems has signed two deals worth approximately 35bn won (USD 26.9m) with the South Korea Defense Acquisition Program Administration for integrated drone defense in critical areas. Hanwha Systems intends to manufacture equipment for South Korean forces capable of detecting small UAVs and drones near critical infrastructure like airports. The system will include jammers to disrupt the radio frequency command and control signal, diverting the flying objects or causing them to crash. This marks the first deployment of such a system in the country. Additionally, Hanwha Systems plans to provide a mobile interception system as part of its efforts to standardize and enhance anti-drone systems while expanding its product range for potential export. The anti-drone systems provided by Hanwha Systems are anticipated to facilitate the sharing of target information among South Korean forces. These systems will be deployed across the Seoul metropolitan area. Notably, in September, South Korea initiated the drone operation command. https://cuashub.com/content/hanwha-systems-secures-south-korea-c-uas-deal/?_hsmi=288592433&_hsenc=p2ANqtz–aNXueRnVtmCYor-IFpBSxr21U2TUZr5QWxazXPCd_WMh8vbG5xZONsKVSDERH7jWeonh9VJwFkELzQKDQ6fXpbxt97ooz7qA2ZGgkOZUB3kKN0MM#utm_campaign=C-UAS%20Hub%20General&utm_medium=email&utm_content=288592433&utm_source=hs_email(Source: https://cuashub.com/)

 

29 Dec 23. Navistar Defense LLC, Madison Heights, Wisconsin, was awarded a $60,919,205 firm-fixed-price contract for refurbishment and upgrade of MaxxPro PLUS Mine Resistant Ambush Protected (MRAP) vehicles. Bids were solicited via the internet with one received. Work will be performed in West Point, Mississippi, with an estimated completion date of July 1, 2025. Fiscal 2024 Foreign Military Sales (United Arab Emirates) funds in the amount of $60,919,205 were obligated at the time of the award. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity (W56HZV-24-C-0023).

 

SEA

 

28 Dec 23. IAI will supply 6 of its advanced Sea Mini-POP sensor payloads to the Royal Thai Navy. These payload upgrades will enhance the capabilities of the Navy’s patrol vessels to be able to operate in difficult and challenging conditions. IAI’s Sea Mini-POP is a multi-sensor electro optical and infrared (EO/IR) payload that includes a thermal camera with continuous optical zoom, a color camera with continuous daytime zoom and a laser rangefinder, as well as advanced image processing, positioning and focusing capabilities. (Source: ASD Network)

 

28 Dec 23. Kawasaki confirms contract for next-generation submarine design work. Kawasaki Heavy Industries (KHI) has received a research and development (R&D) contract from the Japan Ministry of Defense (MoD) to design a new class of diesel-electric submarines (SSKs), a representative from the company confirmed to Janes on 28 December. The boats will be the next generation of SSKs to be operated by the Japan Maritime Self-Defense Force (JMSDF) after the Taigei class. KHI first released a concept image of this next-generation submarine in a corporate presentation on 12 December. The presentation was made to provide an update on the company’s ‘Group Vision 2030′ blueprint. According to the image, the next-generation submarine will be equipped with an X-rudder configuration, which is similar to the form factor adopted by the JMSDF’s Soryu and Taigei classes of submarines. The boats will also have the ability to deploy stand-off missiles. (Source: Janes)

 

AIR

 

29 Dec 23. AeroVironment Inc., Simi Valley, California, was awarded a $32,066,339 modification (P00013) to contract W58RGZ-23-C-0007 for additional Puma units and associated training support services. Work will be performed in Mechanicsburg, Pennsylvania, with an estimated completion date of Sept. 30, 2024. Fiscal 2024 Foreign Military Sales funds in the amount of $32,066,339 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.

 

03 Jan 24. US DoD confirms Nigerian AH-1Z buy. The US Department of Defense (DoD) has confirmed the sale of the Bell AH-1Z Viper attack helicopter to Nigeria, with a related contract notification posted on 19 December. Having been approved for the sale of 12 helicopters in 2022, Nigeria’s procurement was confirmed with the announcement that Northrop Grumman had been awarded a USD7.7m contract modification “for the production and delivery of an additional 32 H-1 tech refresh mission computers in support of the AH-1Z aircraft for the government of Nigeria”. Work on this contract is expected to be completed by June 2024. Nigeria’s total AH-1Z procurement was estimated by the US Defense Security Cooperation Agency (DSCA) to be valued at USD997m, and comprised the helicopters, related equipment, spares, weapons, training, and support. (Source: Google/Janes)

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